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info.answersheets@gmail.com
+91- 9503094040
Global Business Environment
Q.1 Case study
L’Oreal International Marketing Strategy
L’Oreal is the world’s biggest cosmetics and beauty Products Company. Basically
it’s a French based company and its headquartered in Paris. It is focus engaged in
the field of production and marketing of concentrating on hair colours, skin care,
perfumes and fragrances, make up and styling products. L’Oreal products also
based on dermatological and pharmaceutical fields. Their products are made for
Individual and professional customers. This company operates over 130 countries
like Asia, America, East and West Europe through 25 international brands.
The success of L’Oreal lies in the fact that the company succeeded in reaching out to
the customers of different countries of the world, across different income ranges and
cultural patterns, giving them the appropriate product they are worthy of. The area
of expertise of L’Oreal being that it succeeded almost in every country that it
entered. The strategies of L’Oreal was varied enough to help it and stop itself from
restricting itself in a single country. L’Oreal sold its product on the basis of
customer demand and country want rather than keeping the product identical
across the globe. It built ample number of brands or mammoth brands entrenched
to the restricted culture and which appealed to a variety of segment of the universal
market instead of generalising the brand and edible in innumerable culture.
L’Oreal went on to being a local product in every international market. The brand
extension of L’Oreal also came in the same sector or the same segment of market.
L’Oreal believed in growing its expertise in the segment it is conscious of rather
than going into a completely new sector of market.

2. International marketing strategy is more in-depth and broadened in one sense of
the term. It is simply a principle of marketing however on a global scale. Setup of
global marketing strategy has a lot to do with understanding the nature of global
market itself, and most importantly the environment.
Business environment across the globe has different economic, social and political
influence. Thus, it is believed that selecting a global market target for examples
when strategizing is a good idea. International marketing strategy of L’Oreal is
concentrated on a cross cultural arena spanning four market destinations. They are
namely, 1.) Asian Market, 2.) European Market, 3.) North America Market and 4.)
The African, Orient and Pacific Region.
Asia
At present L’Oreal is one of the best company in the whole world in the field of
cosmetic products. The cosmetic products of the L’Oreal are widely used and
specially the hair colour which was introduced by L’Oreal few years ago. L’Oreal is
very famous in Asia and their products in Asia are very cheaper than the other
companies and are used by majority of people in china, Thailand, Japan etc. L’Oreal
is famous and very successful because of their global marketing strategies which
are very helpful and also distinct from the strategies used by other companies in
this field. L’Oreal in Asia uses the sustainable strategy that is of growing the
company as the demands of cosmetic products in the countries like china, Thailand
etc is in great amount. This company uses the strategy of suspicious brand
management and they also brought the strategy of more suspicious acquisitions.
The main problem that a company like L’Oreal faces in Asia is of competition given
by the other companies dealing with the cosmetic products. To overcome this
problem in Asia these companies use the strategy of selling good quality products at
the cheaper rates than the other companies. One of the best strategies of L’Oreal in
Asia is of diversification of the brand and the main reason behind this strategy by
L’Oreal is to make them palatable in the local cultures. L’Oreal in Asia aims at the
management of the global brands with the local variations and this means that
their main aim is of becoming a local and not the foreign company in Asia. For
example L’Oreal in Thailand has given local names to their stores and most of the
employees present in this company, are local people of Thailand. It is because of all
these strategies; L’Oreal is very successful in whole Asia.
European Market

3. L’Oreal is the only company which uses the strategies which also supports the
people in many ways and not only in providing good quality products at cheaper
rates. L’Oreal used different strategies of marketing in the European market like
they used the strategy of nurturing self-esteem of the people with beauty. In
France, L’Oreal created the programs like “Beauty from the heart” for helping the
people made helpless by illness or any kind of negative life experiences. In the
countries like UK and Germany, many of the women and also the young people
regain their confidence and their self-image gradually by using the cosmetics which
are provided by L’Oreal. In European countries L’Oreal also used the marketing
strategies like taking calculated amount of risk etc. but most of the strategies are
related to the growth of the people mentally and not only for the beauty or the
fashion purpose. Various innovative treatment programs are launched by L’Oreal
for the young people of European countries and this company also launches the free
skincare and make-up workshops for the women suffering from cancer. For example
in France a programme named as “La Vie, de Plus Belle” offers the free skincare
and makeup for the cancer suffering women in all over the France. This helps them
to cope with the treatment’s side effects and it also helps them to retain their self-
esteem which is very important for a patient. In the European countries L’Oreal
generally uses the strategy of the management of brand by which L’Oreal had made
a large amount of brands which are rooted in the local culture and which all appeals
to the various segments of the global market. By using these social types of
strategies for the people of Europe has helped L’Oreal in expanding their business
in the whole Europe.
Question:
(5 × 4 = 20)
1. What is L Oreal's international strategy?
2. What strategies make L Oreal an unbeatable beauty company?
3. How does L Oreal promote their products?
4. Why the crowd go for L Oreal product?
5. What is the unique selling proposition of loreal?

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