1. L’ORÉAL
“Because It Is Worth It”

2. Group Members
•Shivani Sharma - 38
•Anitha Nadar - 21
•Jay Naik - 24
•Kavita More - 19

3. The History Of the company…
• In 1907, a young French chemist Eugéne
Schueller developed an innovative colour
formula;
• In 1909, he registred his own company;
• In 1920, the small company employed 3
chemists;
• In 1912, Eugéne Schueller started to
export his products;
• In 1933, he created and launched Votre
Beauté, a magazine devoted to women;
• In 1953, L„Oréal won an advertising
Oscar.

4. About the industry
 The cosmetic industry is a profitable business for most of the manufacturers
of cosmetic products.
 The cosmetic industry world wide seems to be continuously developing,
many famous companies sell their cosmetic products online also in
countries in which they do not have representatives.

5. • L'Oreal on
the road to
greatness
• Becoming
number one
in the beauty
industry
• First steps :
the model
takes shape
• The diversity
of beauty
throughout
the world
2000-present 1909-1956
1957-19831984-2000
HISTORY

6. Operation
• L'Oreal is the world largest cosmetics and beauty
company. They have over 500 products.
• This brand concentrates on:
• Hair color
• Skin care
• Sun protection
• Make up
• Perfumes
• Hair care

7. Our brand’s
BECAUSE YOU'RE WORTH IT

8. PRODUCT TARGET
• L‟Oreal is mainly used for the younger people
like teenagers as most of their products involves
make up which most teenagers like.
• L'Oreal also targets their products to older
women.
• Their slogan “because we‟re worth it” shows
that the product is a luxury product which
suggests it is could be expensive.
• L'Oreal's product, reached the top 100 brands of
The Brand Trust Report published by Trust
Research Advisory in India

9. MARKET SHARE OF L’OREAL
Other
brand’s
59%
L'Oreal
41%
Hair colour
20%
Skincare
6.5%
Shampoo
4.6%

10. Competitors in Indian
market

11. • To keep the different brands
in one basket and yet
keeping the differentiation.
CHALLENGE
• Good brand management
was all about hitting the right
target audience with the right
product.
STRATEGY
Understandings
• Company was brilliant in identifying the needs, cultures
and aspirations of different kinds of customers in
diversified regions.

12. When it First Entered the Market
• Gender Segmentation
• “combination of low price and
natural ingredients would fit
India‟s market,
 women use plants and herbs as
part of their beauty culture”.
 specifically catered to the women
of India,
 how it should carve a niche market
for itself in the Men‟s sector as
well.

13. • Income Segmentation: 2 main segments:
 the poorer masses and the rest
• marketed its product
• low in cost to attract the poorer masses, and her efforts in
reducing ingredients to cut price reveals her aim to minimize
costs as much as possible.
 NOT YET TARGETING middle class or
upper class
• did not make any distinct segmentation of the richer classes

14. The “L‟Oreal Makeover”
• Income Segmentation:
• the quickly rising middle class which was gaining in affluence.
• fastest growing income class that represented a highly untapped market
potential due to their radically different mindsets from the masses.
• Age Segmentation:
• the younger middle class from the more conservative, often older
Indians,
• showed an increased interest in capturing the market share of the
younger Indians.

15. • Psychographic Segmentation:
• L‟Oreal segmented India into different groups based on their
thinking and behavior from the older
• more conservative Indians who held conservative values of
thriftiness more strongly and stubbornly,
• the younger more impressionable generation who had
developed a very different and westernized view on spending
and culture

16. TARGETING
 young affluent middle class females, especially those with graying
hair
• maximum profits as it not only possessed the purchasing
power that masses lacked, but more critically a modernized
mentality
• these people more receptive to purchasing L‟Oreals‟ more
luxurious and expensive products..
 L‟Oreal also target women that sought benefits from using its
products
• no product that solved women‟s hair greying problems
• Middle aged and working women became the main
target of the company.

17.  YOUNG MIDDLE CLASS
• who did not mind using products that damaged their
hair as long as they were cheap due to monetary
problems,
• these women were more educated and concerned for
the need to have healthy beautiful hair, as well as
more equipped with the purchasing power to do so

18.  LOWER INCOME MASSES
• introduced new products like „Colour Naturals‟
which be used multiple times and cost only $3.10,
translating into increased value for the masses.
• L‟Oreal‟s strategy targeted the more affluent that
were more educated and had more disposable income
to splurge on luxury items if they justified their price.

19. Brand
Positioning
• Company has a strong and long-term brand positioning specially
within the minds of middle age women and teenage girls.

20. POSTITIONING
 L‟Oreal hired Ms World in an
advertisement
• L‟Oreal India launched the program
“Beautiful Beginnings” on 7th July
2009, an initiative which aimed to
train at least 200 unprivileged school
drop-out girls every year to make them
employable. It was even inaugurated
by Bollywood actress Aishwarya Rai ,

21.  L‟Oreal has historically carried a premium image and price
tag
 Viral marketing
 dual positioning strategy in India
• L‟Oreal reduced its hair care range prices by 25% in
2010 after it began local production and resorted to another
4% price cut this year

22. DIFFERENTIATION
 Home brands aimed to garner loyalty of existing users
• repeated use by generations of Indians would bring about feelings of
trust and dependability
• attracted thrifty housewives who wanted the cheapest products
 DIFFERENTITATED : by promising better quality products to the
rising middle class
• When L‟Oreal first entered India :beauty education was absent,
training seemed redundant and hairdressers were well satisfied with
cheap local domestic brands
• invested heavily in education and training to boost their status in the
community.

23. Conclusion
• The L‟Oreal Group is the world‟s largest cosmetics &
beauty company. In our opinion, we think that L‟Oreal has
successfully created a brand identity as the adverts that
present the products make them look more expensive.