L'Oreal is a France-based global cosmetics company founded in 1909. It has achieved consistent double-digit profits for 18 years through a global presence in 130 countries with 23 major brands. L'Oreal utilizes regional brand ambassadors and focuses on hair color, skin care, hair care, fragrances, and color cosmetics. The company's strategies of global brand management, strategic acquisitions and makeovers of existing brands like Maybelline, extensive research and development, and regional product customization have contributed to its long-term financial success.

1. CASE STUDY:
L’OREAL - BUILDING A
GLOBAL COSMETIC BRAND
Presenting By,
Aboozar Karimi
Aravind S
Chandan Kumar Roy
Shantun Beniwal

3. SYNOPSIS
 France based leading global cosmetic company.
 Founded in 1909.
 Led by Lindsey Owen Jones, the chairman and
CEO of the Company.
 Achieved double digit profit for eighteen
consecutive years.
 Business in 130 countries with a turnover of around
13.7 billion Euros.
 Only cosmetic company in the world to own more
than one brand franchisee.
 Cosmetic industry refers to the cosmetics, toiletry
and perfumery industry brands.

4.  Segmentation on the basis of product usage
 Luxury
 Consumers
 Professional
 Pharmaceuticals
 L‟Oreal remained as a global leader in the industry with
a market share of 16.8 percent.
 Due to increased focus on „wellness‟, company focused
mainly on
 Cosmecuiticals
 Neutraceuticals

5. BRAND AMBASSADORS IN INDIA

6. STRENGTHS OF L‟OREAL
Global
presence
66,600 23 Global
130 Countries
employees brands
5.7 billion units
38 Factories
in 2011

7. Focused strategy to
become Global brand
Hair color Skin care Hair care
Fragrances Color
cosmetics

8. ROAD TO SUCCESS
 Company Launched the legendary advertisement
campaign “Because I am worth it” for promotion of a hair
color.
 Extraordinary distribution channel to the US, South
America, Russia and the Far East.
 Diversification into wide range of beauty products.
 Expanded globally by introducing Maybelline in USA.
 Relationship with its customers- Personal beauty
advisers at department stores.

9. MAYBELLINE A MILESTONE.
 Acquired in 1996, when lost its focus and band equity.
 Tagline: “Maybe she’s born with it”. “Maybe its
Maybelline”.
 Already well known for ordinary color lipsticks and nail
polishes in USA.
 Promoted the products by adding a tagline “Urban
American chic” .
 Expanded to Japanese market as well, and captured
nearly 56% outside the US.
 Celebrities for promoting brands.

10. BRAND STRATEGY
 Maybelline's success proved L'Oreal's philosophy by
embracing two different cultures (French and American).
 L'Oreal acquired different unknown brands and gave a
facelift, repacked and marketed them aggressively.
 Promoted brands according to their national culture.
 Maintained image with the help of research centers in
Paris and New York.
 Attained 493 patents registered on the company name in
2001.
PACKAGING

12. • To keep the different
CHALLENGE brands in one basket and
yet keeping the
differenciation.
• Good brand management
was all about hitting the
STRATEGY right target audience with
the right product.

13. FINDINGS & LEARNING
• Famous for its Huge brand diversity and brand management
Brand in different countries and cultures.
Diversity
• Highly efficient R&D department.
Good • Spending 3% revenue on R&D each year.
Research & • 2700 researchers. Worldwide.
Developme
nt
• Celibrities from different cultures are used for advertisements.
Modernised • Programs and events adds more effect to advertisements.
approach of
advertising

14. • Middle aged and working women became the main target of
the company.
Target Market
• Established education centers are in many countries.
• Conducted programs related to hairdressers.
Awareness
• Opted complete makeover of the companies by providing
wide range of products.
Mass
Marketing

15. • Company has a strong and long-term brand positioning
specially within the minds of middle age women and teenage
Brand girls.
Positioning
• L‟Oreal does not appreciate points of parity.
• They believe to provide products different from their
POP & POD competitors (P&G and Kevin care).
• Known as Scientific beauty company.
Science Based
Approach

16. • L‟Oreal focuses over all to improve and develop the different
brands it acquired in different regions.
Brand • Maybelline is the best example of consistency.
Consistency
• Distributed is done with respect to its need and is cost
effective.
Distribution
• Used agents and consignments to USA, Japan and other
Channel Asian countries.
• Company was brilliant in identifying the needs, cultures and
aspirations of different kinds of customers in diversified
Understanding regions.
s

17. Region specific products
MEXICO W. EUROPE ASIA
E.
INDIA
EUROPE

18. QUESTIONS
1. Critically comment on L’Oreal’s global brand management
strategies. Do you think L‟Oreal‟s strategies were primarily
responsible for its impressive financial performance? What other
factors helped the company remain profitable since over two
decades?
2. With specific reference to Maybelline, critically comment on Jones
strategy of acquiring relatively unknown brands of different cultural
origins, giving them a makeover and marketing them globally. What
are the merits and demerits of acquiring an existing brand vis-a-
vis creating a new brand?
3. L‟Oreal maintained a large portfolio of brands and was present in
all the four segments of the cosmetic markets. What positioning
strategy did the company follow to ensure that the image of its
brand did not overlap? How and why L‟Oreal did encouraged
competition among its brands in particular segments and at the
same time prevent the brands from cannibalizing each other?