L’Oreal India Case Study

About L’Oreal

• L’Oreal started doing business in India in the year 1991 through a domestic distributor where it launched its first product, a shampoo called Garnier Ultra Doux.

• L'Oreal’s compound annual growth rate in last decade has been about 30%.

• Today it is the second largest global cosmetics group in India. L’Oreal reaches out to 2,300 towns and covers seven lakh outlets

• Globally L'Oreal backs itself with the twelfth-largest media budget in the world. In India, it is the fifth largest media spender in the industry.

L'Oreal Paris

Consumer Products- Maybelline NY- Garnier- L'Oreal Paris

Professional Products- L’Oreal Professionnel- Kerastase- Matrix

Luxury Products- Lancome- Giorgio Armani- Ralph Lauren- Diesel- Kiehl’s

Active Cosmetics- Vichy- La Roche – Posay- Body Shop

The brand portfolio

L’Oreal’s 5 step approach to India

- Reduce additional customer costs

- Understand the needs of Indian Consumers- Launch product ranges specific to their needs- Increase Distribution Channels

- Effective pricing strategy 5

Products for India

• L'Oréal launched Garnier Fructis Shampoo + Oil in India looking at popularity of hair oil products among Indian women.

• L'Oréal pioneered anti-wrinkle creams in India where awareness for the same was almost non-existent.

• Looking at the 5 common hair problems, L'Oreal launched its ‘5 Repair Total’ Shampoo for Indian consumers

• Also launched a "no-tear" shampoo for children aged between four and six years old.

The positioning

• L’Oreal caters to consumers across all income levels and distribution channels

• Maybelline has positioned itself as a lifestyle product mainly targeting teenagers and young girls, whereas Garnier has been targeting the middle income group men and women

• L’Oreal Paris Targets the ‘Masstige’ Segment In Indian providing premium products for the masses

• Lancome, the premium skincare and makeup brand has been positioned as a luxury brand within the portfolio

• To cater to the anti-ageing skin needs, L’Oreal has Vichy the active cosmetic brand under its umbrella

Dual price strategy in India

• Looking at the Indian consumers, L’Oreal has developed a dual price strategy for Indian markets

• It has made its hair care range more affordable, at the same time the skincare segment continues to be a premium segment

• It has also introduced sachets for shampoos and conditioners to reach the masses in India

• At the same time, L’Oreal has kept its premium image in shampoos vis-à-vis competitors.

• So while L’Oreal Paris shampoos are priced at Rs 69 for 100ml, Pantene is at Rs 59 and HUL’s Dove at Rs 64. “

L’Oreal Paris brand philosophy

“BECAUSE YOU'RE WORTH IT”

L'Oréal Paris provides affordable luxury for people who demand excellence.

The Communication strategy

• L’Oreal Paris majorly relies on ‘testimonial advertising’ for its communications

• It effectively uses known Indian celebrities to endorse its products like Aishwariya Rai & Sonamm Kapoor

• L’Oreal Paris has been actively engaging consumers in all forms of communications. For instance, L’Oreal launched the ‘Stay Rooted’ campaign, where consumers were encouraged to connect with their roots by taking the time out to thank and appreciate the people, things and places that have influenced them in their past.

•  L’Oreal also relies on its international campaigns to make an impact in the Indian market.

L’Oreal Success

• L'Oreal's success in can be attributed to following factors

– Understanding of Indian consumers

– Wide Range of products

– Effective positioning vis-à-vis competition

– Aggressive advertising & Marketing

– High Media Spends

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