L'Oreal Mini Case , Kotler 14th edition

1. BECAUSE YOU’RE WORTH IT
ARE YOU ?

2. 1907
EUGENE SCHUELLER
Young chemist,who
sold his patented hair
dyes to local salons.
1957
FRANCOIS DALLE
Starting the concept
of selling beauty
through several
channels.
1988
LINDSAY OWEN-JONES
Expanded the
company into global
scale with strategic
vision and precise
brand management.

3. 1ST
Cosmetics company worldwide
27
Global brands
130
Countries
22.5
Billion of euros of sales in 2014
38
Factories
5.5
Billion units

4. Brand Portfolios

5. 1.
NOW,
Review L’Oreal’s brand
portfolio.What role have target
marketing,smart
acquisitions,and R&D played in
growing
these brands ?

6. Precise Target Marketing
“Each brand is positioned on a very
precise segment, which overlaps as
little as possible with others “

7. Targeting dynamic markets
It is targeting
developing markets
like
India,China,Brazil
and Russia in
order to increase
its growth.

8. NICHE MARKETING
Skin Care Hair Care Perfume Make Up Hair Coloring

9. Psychographic segmentation
New
generation
are more
willing to
spend on
luxury
goods,Which

10. “L'Oreal developed brands in the low-, mid-, and
high-ends which every brand has their own
brand policy.”

11. SMART ACQUISITIONS

12. Acquisition
add more
1966 USA
CHILE
GERMAN
U N I S A
J A D E
CHINA
2000 USA
CHINA
2003
2004
1999
Men Product
Top skin-care brand in China
Makeup and skin-care brand
manufacturing plant
Pune, India
Secured L’Oreal’s Asiapresence
Ethnic hair-care marketers

13. RESULT … ??

15. ALL SALE AND NO RESEARCH MAKES
A COMPANY DULL ONE !!
3.5%
2.7%
1.7%

16. 2.
Who are L’Oreal’s
greatest
competitors?Local,glob
al or both?Why?

17. COMPETITION…
LOCAL
GLOBAL

18. Strong competitors due to their high
market share,competitive pricing and
loyal consumer base.
GLOCAL

19. 3.
What has been the key
to successful local
product launches such
as Maybelline’s
Wondercurl in Japan?

20. INNOVATION IN MARKETING
Through 14 research center
around the world , it caters
to the local needs of each
market.

22. GEOCOSMETICS
created to understand consumers at local level
Study the beauty trends around the world and deliver the best product for that region.
“People on different
continents have their
own specific needs,
habits, dreams, and
desires – so one
product, or even one
formula, does not fit all”

23. 4.
What’s next for L’Oreal on a
global level?If you were
CEO,how would you sustain the
company’s global leadership?

24. Glocal … !!
As Gilles weil,
explained,” You
have to be local
and as strong as
best locals,but
backed by an
international
image and
So it needs to
invest more in new
developing markets

25. Joint Ventures
It can
increase its
profit and
market share
by explicitly
showing its

26. It should
launch more
organic
products for
its health and
safety
consciousness
consumers.
It should
invest in e-
commerce
sales along
with

27.  It can
capitalize on
metrosexual
trend.
It should
tap into more
prospective
distribution

28. Recap :
Brand Introduction
Target marketing :Precise target marketing,Niche marketing.
Smart acquisitions : Merging with different small and local
companies .
R&D: Innovation using technology.
Fierce competition : Competition with peer brands.
Geocosmetics: Local market preference.
Scopes : Being Glocal,Joint ventures,Organic products,e-commerce
sales,Metrosexual trend and more Distribution channels.
Credits: images.google.com
flicker.com

29. Disclaimer
Created by Itesh Kumar Panda , NIT Rourkela
during an internship
by Prof. Sammer Mathur , IIM Lucknow

30. Thank
you!