I am the World’s Largest Beauty and Cosmetics Company

I was born in 1909, Paris , France

I signify “Science of beauty in a jar”

I own 612 patents and 23 brands

My sales is a whopping$19.5 Billion

I operate 5 R & D centers worldwide (France, USA , Japan)

I am Lo r e a l

I am high On Innovation

I spend 3.5 % of my revenue on R & D

I Adapt : My Ideas are Global , Application Local

I focus on Quality , Safety and Efficacy

I respect people’s culture, respect Diversity

The Founder : Eugene Schueller

Francois Dalle : Initiated Psychographic Profiling

Lindsay Owen Jones : 5 core businesses

Cosmetics

Body Shop

Dermatology

Galderma Labs

Consumer Product : Garnier, Loreal, Maybelline, Soft Sheen Carson ----> Mass Marketing

Luxury Product Division : Prestigious International Brands Perfumeries, Dept Stores and Duty free shops

Professional Products Division : Products for Professionals Hair Salons

French Reputation ---- > Most Potent tool

Later focused on catering to Diverse cultures

Evaluation Centers across the world

Employing a variety of professionals to aid Specialization

Going Reverse --- > Local Innovations --- > Global Rollout

BRAND DIVERSITY

Acquired in 1996 ------ > $758 Million

Sleeping / Stale brand

Major overhaul by Loreal : Base shift to NY

30 % boost to Ad spend, added Urban Flair

Tagline retained

New products : Make up chill, Express Finish, Great wear

Overhaul Success : Sales grew 93%, expanded to 70 countries

Redken : American Premium Brand

Launched in Latin America ---13 countries --- 20% sales growth

Loreal combines education program for Hairdressers ---tailor made products to Latin America -> 4000 luxury salons adopt Redken

Inoa -> Western European Markets -> 3500 training sessions provided to hair dressers -> 36000 salons adopt Inoa

Huge spend on Ads --> $4.56 billion

$7 billion marketing outlays

75% - Tv : 20 % - print : 2% - Online: rest on Billboards

Loreal one of China’s fastest growing advertisers

10 % of media spend dedicated to China

CELEBRETIES

MY INNOVATIONS

Garnier fructis --- > User generated Website

Virtual Personal Stylist with Elle and Bloomingdales

Help building fb pages for Salons

Destination Beauty : Youtube channel

Instructional Videos by hairstylists

Loreal aims to increase its customer base to 2 billion by 2020

Core focus on Innovation, creativity, flair , intuition and Imagination

Q1)Th e Brand excels at delivering benefits customers truly desire

Massive range of products (Luxury, Active, Cosmetics)

Effective segmentation (Garnier , Maybelline, Lancoume)

Focus on experiential Marketing: Virtual Personal Stylist

12 evaluation centers : 6 R & D centers

VIP club

RATING : 8/10

Q2) The Brand stays Relevant

Geo cosmetic Approach in product development

Perfect choice of celebrities ranging form Jane Fonda to Freida Pinto

Focus on adapting to cultures(Africa, China, Japan) and stay relevant

Shift from print to digital marketing

RATING : 9/10

Q3) The pricing strategy is based on consumer’s perception of values

Concept Of Masstige : Dual Pricing Strategy

Loreal : Premium Price Tag

Garnier, Maybelline : Lower priced segments

Push strategy followed in Asian countries . For ex : 25 % price slashed for Loreal India

RATING : 8/10

Q4) The brand is properly Positioned

Positioned as Science of beauty in a jar

Customer Driven Products(Garnier, Maybelline)

Luxury Driven (Loreal, Lancoume)

Active Cosmetics(Pharma)

Professional Products

RATING : 9/10

Q5)The Brand is Consistent

Consistent with its philosophy of Science of beauty in a jar with focus on R & D, Innovation and Creativity

Consistent in maintaining its image as a premium brand

POP(Consistence in terms of quality, pricing for ex:Garnier , Maybelline etc )

POD (Galderma, Bodyshop, Science of beauty in a jar)

Consistent in terms of acquisitions and makeover (Maybelline, Mininurse, Biomac)

RATING : 7/10

Q6) The brand portfolio and hierarchy makes sense

• Emphasis on cultural origins

• Integrating acquired brands within brand architecture

• Designed based on target markets rather than product

• Intent on creating distinct identity and image of Individual brands

• It makes sense as each division has its own base and caters to a wide range of customers

RATING : 8/10

Q7)Brand makes use of full repertoire of marketing activities

75 % on Tv, 20 % on Print , 2% on online, rest on billboards

Campaigns like Brandstorm, Go 360 etc

VIP Club for elite members

Online Expert feedback, Your personal stylist.

RATING : 8/10

Q8)Brand’s managers understand what the brand means to the customers

• Beauty is all about imagery, emotions, aspirations and education –

Agon • Loreal’s brand managers are always conscious of the fact

that empathising with the customers and providing them safe trustworthy beauty is the brand’s prime strength.

• This is signified by the focus on safety, quality and efficacy

• RATING : 8/10

Q9) Is the brand supported enough over the long run ?

12 evaluation centers (study of skin, culture)

6 R & D centers in USA, France and Japan

Galderma Labs, Body shop

Despite financial or marketing reversals, Loreal has never compromised on innovating and supporting its brands

RATING : 9/10

Q10)The company monitors sources of brand equity

• Constant Feedback mechanism

• Consumer Sensorial Engagement

• Choice of Brand ambassadors relevant

• Frequent Brand Audits

• Constant innovation and introduction of new products shows their focus on maintaining brand equity

RATING : 8/10