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Loreal branding
L'Oreal is a France-based global cosmetics company founded in 1909. It has achieved consistent double-digit profits for 18 years through a global presence in 130 countries with 23 major brands. L'Oreal utilizes regional brand ambassadors and focuses on hair color, skin care, hair care, fragrances, and color cosmetics. The company's strategies of global brand management, strategic acquisitions and makeovers of existing brands like Maybelline, extensive research and development, and regional product customization have contributed to its long-term financial success.
Loreal branding
- 1. CASE STUDY: L’OREAL - BUILDING A GLOBAL COSMETIC BRAND Presenting By, Aboozar Karimi Aravind S Chandan Kumar Roy Shantun Beniwal
- 3. SYNOPSIS France basedleading global cosmetic company. Founded in 1909. Led by Lindsey Owen Jones, the chairman and CEO of the Company. Achieved double digit profit for eighteen consecutive years. Business in 130 countries with a turnover of around 13.7 billion Euros. Only cosmetic company in the world to own more than one brand franchisee. Cosmetic industry refers to the cosmetics, toiletry and perfumery industry brands.
- 4. Segmentation on the basis of product usage Luxury Consumers Professional Pharmaceuticals L‟Oreal remained as a global leader in the industry with a market share of 16.8 percent. Due to increased focus on „wellness‟, company focused mainly on Cosmecuiticals Neutraceuticals
- 5. BRAND AMBASSADORS ININDIA
- 6. STRENGTHS OF L‟OREAL Global presence 66,600 23 Global 130 Countries employees brands 5.7 billion units 38 Factories in 2011
- 7. Focused strategy to become Global brand Hair color Skin care Hair care Fragrances Color cosmetics
- 8. ROAD TO SUCCESS Company Launched the legendary advertisement campaign “Because I am worth it” for promotion of a hair color. Extraordinary distribution channel to the US, South America, Russia and the Far East. Diversification into wide range of beauty products. Expanded globally by introducing Maybelline in USA. Relationship with its customers- Personal beauty advisers at department stores.
- 9. MAYBELLINE A MILESTONE. Acquired in 1996, when lost its focus and band equity. Tagline: “Maybe she’s born with it”. “Maybe its Maybelline”. Already well known for ordinary color lipsticks and nail polishes in USA. Promoted the products by adding a tagline “Urban American chic” . Expanded to Japanese market as well, and captured nearly 56% outside the US. Celebrities for promoting brands.
- 10. BRAND STRATEGY Maybelline'ssuccess proved L'Oreal's philosophy by embracing two different cultures (French and American). L'Oreal acquired different unknown brands and gave a facelift, repacked and marketed them aggressively. Promoted brands according to their national culture. Maintained image with the help of research centers in Paris and New York. Attained 493 patents registered on the company name in 2001. PACKAGING
- 12. • To keepthe different CHALLENGE brands in one basket and yet keeping the differenciation. • Good brand management was all about hitting the STRATEGY right target audience with the right product.
- 13. FINDINGS & LEARNING • Famous for its Huge brand diversity and brand management Brand in different countries and cultures. Diversity • Highly efficient R&D department. Good • Spending 3% revenue on R&D each year. Research & • 2700 researchers. Worldwide. Developme nt • Celibrities from different cultures are used for advertisements. Modernised • Programs and events adds more effect to advertisements. approach of advertising
- 14. • Middle agedand working women became the main target of the company. Target Market • Established education centers are in many countries. • Conducted programs related to hairdressers. Awareness • Opted complete makeover of the companies by providing wide range of products. Mass Marketing
- 15. • Company hasa strong and long-term brand positioning specially within the minds of middle age women and teenage Brand girls. Positioning • L‟Oreal does not appreciate points of parity. • They believe to provide products different from their POP & POD competitors (P&G and Kevin care). • Known as Scientific beauty company. Science Based Approach
- 16. • L‟Oreal focusesover all to improve and develop the different brands it acquired in different regions. Brand • Maybelline is the best example of consistency. Consistency • Distributed is done with respect to its need and is cost effective. Distribution • Used agents and consignments to USA, Japan and other Channel Asian countries. • Company was brilliant in identifying the needs, cultures and aspirations of different kinds of customers in diversified Understanding regions. s
- 17. Region specific products MEXICO W. EUROPE ASIA E. INDIA EUROPE
- 18. QUESTIONS 1. Critically comment on L’Oreal’s global brand management strategies. Do you think L‟Oreal‟s strategies were primarily responsible for its impressive financial performance? What other factors helped the company remain profitable since over two decades? 2. With specific reference to Maybelline, critically comment on Jones strategy of acquiring relatively unknown brands of different cultural origins, giving them a makeover and marketing them globally. What are the merits and demerits of acquiring an existing brand vis-a- vis creating a new brand? 3. L‟Oreal maintained a large portfolio of brands and was present in all the four segments of the cosmetic markets. What positioning strategy did the company follow to ensure that the image of its brand did not overlap? How and why L‟Oreal did encouraged competition among its brands in particular segments and at the same time prevent the brands from cannibalizing each other?