LOREAL Marketing Strategies

March 20, 2018 | Author: Ranjeet Rajput | Category: Sanofi, Survey Methodology, Science, Business, Marketing


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CONTENTS PREFACE  ACKNOWLEDGEMENT  CERTIFICATE  DECLARATION Topic or Chapter Chapter -1 1. Company profile of L‘ORÉAL 2. Mission and Vision of L‘ORÉAL 3. Board of Directors 4. History of L‘ORÉAL Page No. 2-9 Chapter -2 Objectives of L‘ORÉAL Chapter -3 1. Products of L‘ORÉAL 10-10 11-23 CHAPTER -4 Research and Methodology of L‘ORÉAL Chapter -5 a. Data Analysis and Interpretation Chapter- 6 Marketing Strategies of L‘ORÉAL Chapter -7 Swot Analysis of L‘ORÉAL 1. Limitations of the study 2. Findings 3. Suggestions Conclusion Bibliography Questionnaire 1 24-26 27-33 34-39 40-41 42-44 45-45 46 47-47 CHAPTER-1 COMPANY PROFILE OF L’ORÉAL L‘Oréal is the world‘s largest cosmetics company; present in over 130 countries with 66,600 employees world-wide. The company had a turnover of 19.5 billion Euros in 2010. The company has been present in India for close to 20 years and in 2009 celebrated its global centenary. Today, L‘Oréal India is one of L‘Oréal‘s fastest growing subsidiaries and employs over 1000 people across six sites including: four regional offices, a factory in Chakan, Pune and its headquarters in Mumbai. L‘Oréal‘s leadership is achieved through cutting-edge technology with a portfolio of well-known brands that answer all beauty needs and are distributed in all channels. Each brand benefits from considerable investments in research made by the L'Oréal Group. The Group's research efforts, unique in the beauty industry, permit each brand to benefit from formulas specifically adapted to the needs of men and women worldwide, within each market or distribution circuit that is present. In India, L'Oréal brands are present in the following four main categories: CONSUMER PRODUCTS L‘Oréal Paris Garnier Maybelline New York LUXURY PRODUCTS Lancôme 2 Kiehl‘s Ralph Lauren PROFESSIONAL PRODUCTS L‘Oréal Professional Matrix Kérastase Kéraskin Esthetics ACTIVE COSMETICS Vichy La Roche Posay MANUFACTURING PLANT In addition to the head office in Mumbai and regional offices in New Delhi, Bangalore, Chennai & Kolkatta, L'Oréal India also operates a manufacturing plant and distribution centre located in Chakan, Pune. Set up in 2004, this factory has been awarded the international certifications of ISO 14001, ISO 9001-2000 AND OHSAS. The Chakan plant specializes in the manufacture of hair-colour, hair care and skin care products, producing 190 million units under the strictest of standards. The L'Oréal Group is the world's largest cosmetics and beauty company. With its registered office in Paris and head office in the Paris suburb of Clichy, Hauts-de-Seine,France, it has developed activities in the field of cosmetics. Concentrating on hair colour,skin care, sun protection, make-up, perfumes and hair care, the company is active in thedermatological, tissue engineering and pharmaceutical fields and is the topnanotechnology patent-holder in the United States.[ 3 MISSION AND VISION BEAUTY FOR ALL For more than a century, L‘Oréal has devoted itself solely to one business: beauty. It is a business rich in meaning, as it enables all individuals to express their personalities, gain selfconfidence and open up to others. Beauty is a language. L‘Oréal has set itself the mission of offering all women and men worldwide the best of cosmetics innovation in terms of quality, efficacy and safety. It pursues this goal by meeting the infinite diversity of beauty needs and desires all over the world. Beauty is universal. Since its creation by a researcher, the group has been pushing back the frontiers of knowledge. Its unique Research arm enables it to continually explore new territories and invent the products of the future, while drawing inspiration from beauty rituals the world over. Beauty is a science. Providing access to products that enhance well-being, mobilising its innovative strength to preserve the beauty of the planet and supporting local communities. These are exacting challenges, which are a source of inspiration and creativity for L‘Oréal. Beauty is a commitment. By drawing on the diversity of its teams, and the richness and the complementarity of its brand portfolio, L‘Oréal has made the universalisation of beauty its project for the years to come. L‘Oréal, offering beauty for all. 4 GROUP PROFILE  A century of expertise in cosmetics  €20.3 billion consolidated sales in 2013  27 global brands*  130 countries  68 900 employees  613 patents filed in 2013 * These brands' annual sales are superior to 50 million euros 5 . an international approach and a global vision of major challenges ahead. AN APPETITE FOR ACTION Born in France in 1956. an international group promoting freedom to pursue new ideas and giving its employees the chance to quickly prove themselves. After a brief stint as product manager for the Consumer Products division in France. his professional expectations matched the characteristics of L'Oréal. where he spent four years turning around a tough situation and laying the foundations of a solid business. unwavering and constructive. especially in cosmetics.BOARD OF DIRECTORS JEAN-PAUL AGON Chairman and CEO Jean-Paul Agon's career is like the man himself: energetic. he was appointed General Manager of L'Oréal Greece. he has forged leadership skills underpinned by key expertise: indepth knowledge of how the company works. challenges and responsibilities. A man with an affinity for marketing. always leading to tangible results. 6 . With a background spanning a wide range of environments. Jean-Paul Agon joined L‘Oréal in 1978after graduating from HEC international business school. and an awareness of the importance of "psychology and culture". when he was named President of L'Oréal USA. Mr Agon played a predominant part in developing these huge drivers for future growth. he channels that same passion into promoting L'Oréal's ethical values. A man of action. Jean-Paul Agon has been appointed as Chairman and CEO. at the time suffering a slowdown in growth. a new chapter in his career began. Plénitude and Elsève. dynamism and modernity — endowing the company with truly international appeal. making the company a model of corporate citizenship. L'Oréal Chairman and CEO Lindsay Owen-Jones entrusted him with the task of setting up and heading the L'Oréal Asia Zone in the midst of a full-blown economic crisis. In 2001. stepping up investment and recruiting a new generation of local talent. It was during this time that Garnier launched its hugely successful Fructis range. leading a drive to win market share across every category in a highly competitive environment. 7 . where he played a key role in dealing with issues related to European markets. he instils in the group the energy. he rose to a towering challenge as International Managing Director for Biotherm. In 1997. Lending fresh impetus to these still-emerging markets meant creating subsidiaries in a number of countries. where he oversaw a number of key launches and major successes. In 2006 Jean-Paul Agon has been Chief Executive Officer of L‘Oréal since 2006. a man of conviction. rigour and vision needed to successfully tackle the challenges of the third millennium. setting out relevant strategies. On March 17th 2011. In 1989. including Studio Line. he returned to France as General Manager of L'Oréal Paris. No mean feat. later teamed up with Gemey. Mr Agon left France to take up a new challenge as Managing Director of L'Oréal Germany.In 1985. AN INTERNATIONAL CULTURE In 1994. gave him his first taste of major acquisitions. The absorption of German cosmetics company Jade. completely remodelling the brand to chart a strategic tack that gave Biotherm renewed strength. pharmacies and direct mail. and one in India.000 by 1984 and is nearly 2. Eugène Schueller. a young French chemist. that number reached 1. permanents. the slogan was changed again to "Because 8 . In 1920. L‘Oréal got its start in the hair-color business. health/beauty outlets. Sanofi-Synthélabo merged with Aventis in 2004 to become Sanofi-Aventis. L‘Oréal purchased Synthélabo in 1973 to pursue its ambitions in the pharmaceutical field. in 2005 one was established in Shanghai. L‘Oréal controlled the film company Paravision.S. Schueller registered his company. the company employed three chemists. body and skin care. On 17 March 2006. Kanagawa Prefecture. whose properties included the Filmation and De Laurentiis libraries. which he then sold to Parisian hairdressers. Synthélabo merged with Sanofi in 1999 to become Sanofi-Synthélabo. were research and innovation in the field of beauty. the Société Française de Teintures Inoffensives pour Cheveux (Safe Hair Dye Company of France).: Clark. Schueller formulated and manufactured his own products. from hair salons and perfumeries to hyper . The company's products are found in a wide variety of distribution channels. L'Oréal purchased cosmetics company The Body Shop for £562 million. From 1988 to 1989. makeup and fragrances. By 1950. New Jersey. the U. On 31 July 1919. cleansers. In late 2009. but the company soon branched out into other cleansing and beauty products. The guiding principles of the company. this was replaced by "Because you're worth it". in Japan: Kawasaki. New Jersey. In the mid 2000s.and supermarkets. the teams were 100 strong. China. L'Oréal's famous advertising slogan is "Because I'm worth it". developed a hair dye formula called Auréale. hair styling. A future facility in the US will be in Berkeley Heights. L‘Oréal currently markets over 500 brands and many thousands of individual products in all sectors of the beauty business: hair colour.StudioCanal acquired the Paravision properties in 1994.HISTORY In 1909. which eventually became L‘Oréal. L‘Oréal has six worldwide research one in and development centres: two in one France: Aulnay and Chevilly.000 today. L'Oréal also owns a Hair and Body products line for kids called L'Oréal Kids. Indonesia. The production will be absorbed 25 percent by domestic market and the rest will be exported. taking sole control of the company. 9 . Cikarang. L'Oréal and 3 Suisses founded Le Club des Créateurs de Beauté specialising in mail order sales of cosmetic products.we're worth it" following motivation analysis and work into consumer psychology of Dr. with a total investment of US$100 million. Maxim Titorenko. The shift to "we" was made to create stronger consumer involvement in L'Oréal philosophy and lifestyle and provide more consumer satisfaction with L'Oréal products. In 2010 significant growth occurred at Indonesia with 61 percent increase of unit sales or 28 percent of net sales. L'Oréal acquired 3 Suisse's stake. In March 2008. In 1987. In November 2012. the slogan for which is "Because we're worth it too". L'Oréal inaugurated the largest factory in the Jababeka Industrial Park.  To know about the price & product of Loreal. 10 .  To know about the brand value of Loreal.  To know about the promotional policies of Loreal.CHAPTER-2 OBJECTIVE  To know about market share of Loreal.  To know about the marketing strategies of Loreal. SKIN CARE 2. HAIR CARE 5. MAKE UP 3. HAIR COLOUR 4.CHAPTER-3 PRODUCT PROFILE LOREAL PRODUCTS IS DIVIDED INTO FOUR PARTS: 1. FOR MENS L'Oreal Professionnel Serie Expert Absolut Repair Cellular Repairing Shampoo for Very Damaged Hair (250 ml) Rs. 500 11 . 600 12 .L'Oreal Professionnel X-tenso Care Straight Shampoo (230 ml) Rs. 525 L'Oreal Professionnel X-tenso Care Straight Masque (200 ml) Rs. 600 L'Oreal Professionnel Serie Expert Liss Ultime Polymer AR Smoothing Masque for Unmanageable Hair (200 ml) Rs. 500 L'Oreal Professionnel Serie Expert Absolut Repair Cellular Repairing Masque for Very Damaged Hair (200 ml) Rs. 600 13 .L'Oreal Professionnel Serie Expert Liss Ultime Shampoo (250 ml) Rs. 580 14 .L'Oreal Professionnel Serie Expert Force Vector Shampoo (250 ml) Rs. 500 L'Oreal Professionnel Serie Expert Liss Ultime Shine Perfecting Serum( 125 ml) Rs. Instant Clear Purifying Anti-Dandruff Shampoo (250 ml) Rs. 500 L'Oreal Professionnel Serie Expert Absolut Repairing Treatment Serum (50 ml) Rs. 580 L'oreal Professionnel Mythic Oil Shampoo (250ml) Rs. 750 15 .L'oreal Professionnel Expert Serie . L'Oreal Professionnel Serie Expert Absolut Repair Conditioner (150 ml) Rs. 551 16 . 475 L'Oreal Professionnel X-tenso Care Straight Serum (50 ml) Rs. 1680 L'Oreal Professionnel Serie Expert Force Vector Masque (200 gm) Rs. 800 L'Oreal Professionnel Serie Expert Liss Ultime Combo Rs. 600 17 .L'Oreal Professionnel Mythic Oil Masque (200 ml) Rs. 500 L'Oreal Professionnel Mythic Oil (125ml) Rs. 950 18 .L'Oreal Professionnel Serie Expert Pure Resource Shampoo( 250 ml) Rs. 550 L'Oreal Professionnel X-tenso Care Straight Shampoo (230 ml) (Pack of 2) Rs. 500 L'Oreal Professionnel Tecni Art Hair Mix Spiral Splendour Nutri Control Cream for Dry Curly Hair (150ml) Rs. 1050 998 19 .L'Oreal Professionnel Serie Expert Vitamino Color Incell Hydro-Resist Color Protecting Shampoo (250 ml) Rs. 600 L'Oreal Professionnel Tecni Art Hair Mix Supreme Smooth Nutri Smoothing Cream for Dry Hair (200 ml) Rs.L'Oreal Professionnel Tecni Art Hair Mix Sublime Shine Anti Frizz Serum for Dry Hair (125 ml) Rs. 600 20 . L'Oreal Professionnel Homme Force 3 Sculpte Sculpting Fibre Paste (150 ml) Rs. 500 21 . 575 L'Oreal Professionnel Serie Expert Sensi Balance Shampoo (250 ml) Rs. 525 22 . 550 L'Oreal Professionnel Liss Control Plus Tecni Art Serum (50 ml) Rs. 580 L'Oreal Professionnel Homme Cool Clear Anti Dandruff Shampoo (250 ml) Rs.L'Oreal Professionnel Tecni Art Full Volume Mousse (250 ml) Rs. 1680 L'Oreal Professionnel Serie Expert Liss Ultime Thermo Smoothing Oil (50 ml) Rs.L'Oreal Professionnel Serie Expert Combo Rs. 580 23 . The advanced learner‘s dictionary of current English lay down the meaning of research as ―A careful investigation or inquiry specially through search for new facts in any branch of knowledge. What is research methodology? It is the science that tells the method of doing research.  Developing research design.  Determining the data collection. formulated making deduction & researching conclusion & at least carefully testing the conclusion to determine weather they fit the formulating hypothesis.  Developing sampling plan.  Conducting field work.The word research has been derived from French word research means to search.it mainly consist of following steps. 24 .One can also define research as a scientific and systematic search for pertinent information on a specific topic. Once can also define search as a scientific and systematic search for pertinent information on a specific topic. Infect research is an art of scientific investigation. Definition of research methodology: Research may be defined as ―a careful investigation or enquiry specially through search for new facts in any branch of knowledge‖ in a technical sense research comprise defining& redefining problems.‖ This inquisitiveness is the mother of all knowledge and the method which man employs for obtaining the knowledge of whatever the unknown can be termed and research.CHAPTER-4 RESEARCH METHODOLOGY Meaning of research Research in common parlance refers to a search for knowledge. Research in comman parlance refers to a search for knowledge . 2. Tabulating refers to bringing together similar data and compiling them in an accurate and meaningful 25 . Data sources: The sources of collection of primary data are:  Questionnaire The sources of collection of secondary data are:  Books  Websites  Magazine  Brochure Analysis and interpretation: Data collection through questionnaire and personnel interview resulted in availability of the desired information but these were useless until there were analyzed. Data collection: 1.RESEARCH DESIGN: Research design is the conceptual structure within which research is conducted. In this survey I used both primary and secondary data. Secondary data-It is the data that is already been collected by someone else. coding and tabulating. All information collected through questionnaire. The design used for carrying out this research is descriptive. primary data-primary data are those which are fresh and collect for the first time and thus happen to be original character. Research design used in the survey: Considering the objectives of the study and also the importance of the decision it was decided to undertake an exploratory survey. It constitutes the blueprint for collection. Various steps required for this purpose were editing. measurement and analysis of data. The individuals were selected in the random manner form sample and data were collected from research study. The data collected by questionnaire was analyzed. Need for sampling  Sampling can save time and money.  Sampling remains the only choice when a test involves the destruction of the items under study.  Sampling remains the only way when population contain infinitely may members.manner. bar chart and pie chart. a sample study usually less expensive than a sensus study and produces result at a relatively faster speed. interpreted with the help of table. Sampling plan It is very difficult to collect information from every members of population as time and cost are the major limitation that the researcher faces a sample 30 was taken the sample size of 30 individual where selected on the basis of convenient sampling techniques. 26 . CHAPTER-5 DATA ANALAYSIS AND INTERPRETATION Q1. Are you aware about L’ORÉAL? YES 85% NO 15% 15% YES NO 85% According to survey we find that 85% of customers are aware about L’ORÉAL while 15% are not. 27 . 28 . Have you owned any product of L’ORÉAL? YES 40% NO 60% 40% YES NO 60% According to survey we find that 40% of customers are owned a product of L’ORÉAL while 60% are not.Q2. Q3. Which product of L’ORÉAL do you basically use? SKIN CARE MAKE UP HAIR COLOUR HAIR CARE FOR MENS 28% 35% 5% 15% 17% 17% 28% SKIN CARE MAKE UP HAIR COLOUR HAIR CARE 35% FOR MENS 15% 5% According to survey we find that 28% of customers are used SKIN CARE. 15% customers use HAIR CARE while 17% customers used FOR MEN. 29 . 5% customers use HAIR COLOUR. 35% customers use MAKE UP. Are you satisfied with the product and price of L’ORÉAL? YES 88% NO 12% 12% YES NO 88% According to survey we find that 88% of customers are satisfied with product and price of L’ORÉAL while 12% are not.Q4. 30 . Rate the product about your satisfaction? GOOD VERY GOOD EXCELLENT POOR 52% 20% 18% 10% 60% 52% 50% 40% 30% 20% 20% 10% 0% GOOD VERY GOOD EXCELLENT POOR 18% 10% Series1 According to survey we find that 52% of customers are likely to says that its Good. 20% customers says its Very Good. 31 . 18% customers says its excellent while 10% says its Poor.Q5. V. 10% customers says by Hoardings while 17% says by Mouth of tongue. By which source you come to know about L’ORÉAL? T.V NEWSPAPER HOARDINGS MOUTH OF TONGUE According to survey we find that 58% of customers are come to know by T.Q6. 32 . 20% customers says by Newspaper.V NEWSPAPER HOARDINGS MOUTH OF TONGUE 58% 15% 10% 17% 17% 10% 58% 15% T. 33 . Did you aware about Promotional policies of L’ORÉAL? YES 65% NO 35% 35% YES 65% NO According to survey we find that 65% of customers are aware about promotional policies while 35% are not.Q7. 34 . part of the 22. Satyaki Ghosh. The original pack costs R159. consumers can now get highend products. ―We have launched Garnier Colour Naturals in smaller packs at R59. L‘Oreal India is introducing its products in smaller packs at affordable price points. said: ―Our R&I centre has a dual mission: to adapt the technologies develo ped by the worldwide centres to meet the expectations of Indian consumers.‖ The R&I centre in India is the L‘Oreal Group‘s sixth R&I hub globally. In January this year. we are looking at green field projects — from ideation to implementation of projects and designing new technologies and products at our centre. To reach out to a wider audience. director (consumer products division). At affordable prices. L‘Oréal inaugurated this centre in Mumbai. The L‘Oreal Group plans to invest a total of 140 million euro (R970 crore) in India from 2011 to 2016. is drawing up a three-pronged strategy to sustain its growth momentum in India. To woo the Indian middle class.‖ said Ghosh. We are creating smaller packs to go deeper in India. To start with. And. In line with this strategy. the company is launching a slew of initiatives to gain high visibility for its products in Indian markets.‖ said Ghosh.CHAPTER-6 MARKETING STRATEGIES OF LOREAL L‘Oreal India. The company is currently hosting visibility-related activities with modern trade as well as general stores. L‘Oreal India is now sharpening its focus on mass market strategy in competitive markets. As part of its retail strategy. The company has introduced its brand ‗Garnier Colour Naturals‘ in small economy packs and single use packs across the country.46-billion-euro L‘Oreal Group. the company is planning to develop new technologies and products at its new research and innovation centre in India. L‘Oréal India.50. the company has also launched R25 tubes of face wash and shampoos in sachets priced at R1. ‗‘We are seeing the emergence of a large middle class. On the company‘s strategy. DIY. L'Oreal is vigilant about making sure its content empowers customers and leaves them with a positive outlook toward the brand. Aspiration By sponsoring events such as the Golden Globes and Project Runway. speaks to iMedia about how the company tackles the content marketing world and explains why this approach has had such a resurgence recently. This opens L'Oreal Paris up to a whole host of content marketing opportunities around education. we take some retail space in markets and put up pictures of brands and its celebrity endorsers. How-to videos. Once a female consumer finds a makeup or beauty product that she likes. and providing facts to consumers are essential ways the brand promotes itself to its customers. The glamor of an awards event or the high prominence of a fashion show are perfect places for L'Oreal to insert and establish itself as the product to purchase if you want to improve yourself and reach higher goals for health and beauty. VP of integrated marketing communications at L'Oreal Paris. she tends to stick with it. L'Oreal has positioned the brand as trademark for aspiration.―We are running a programme called ‗Dominance‘. The company promotes itself as more than just a cosmetic and beauty brand but as a source of strength and confidence for its consumers. The company boasts high brand loyalty and terrific repeat business. Empowerment L'Oreal is all about empowering its customers. Education L'Oreal Paris is a trusted brand. all while providing useful information and attracting new fans. When we go to a new town. 35 . Kristen Coming. A local research center will help the company further cater to the local tastes while tapping the cheap human capital which could be used to develop products for other markets. Backed by these initiatives the company India operations grew at +20% last year when India‘s economy growth slowed down from 10% to 7%. A growth in the company‘s market share 36 . L‘Oréal Finance. individual sachets for a few rupees. The company plans to quadruple its turnover in India by 2020 and the recent investments are to support this target. the company is also experimenting with a dual pricing strategy which will help it differential its prestige brands. and they could drive long term growth given the low proliferation of high-end cosmetics in the market. Why Is The Focus On India? The company expects India to be among its biggest markets by 2020. the market size and increasing disposable income of the middle class. It has experimented with selling products in cheap. L‘Oréal Finance.000 small shops nationwide. and believes it currently has presence across 750. January 2013)) We believe that the initiatives by the company cater to the price conscious nature of the Indian population. This would require substantial revenue growth from India which currently contributes about 1% of its total worldwide revenues.Company’s Strategy To Tap The Indian Market The majority of Indians still shop at small neighborhood outlets rather than at supermarkets and this would require the company to pursue an innovative retail strategy. ((L‘Oréal unveils new Research & Innovation center in India. ((L‘Oréal unveils new Research & Innovation center in India. Besides localized products. January 2013)) It has also used its Garnier product range to develop a special range of products that use Indian ingredients and is testing makeup products to expand beyond hair and skincare categories. L‘Oréal estimates the annual spending per head on beauty products in India to grow from US$4 to US$13 by 2025 and a product portfolio customized to the Indian needs will help the company capture a majority share of the growing middle class. ‖ Going local For its consumer products brands Garnier and L‘Oreal Paris. Apart from ‗Indo-vation‘. around 20 per cent for hair colouring products. both with product and pricing. it‘s important to be in the right place at the right time – and that‘s clearly been the aim of French cosmetics giant L‘Oreal in India. Seeking Alpha. February 2012)) Two decades of trials have placed L'Oreal high in the Indian beauty market. as well as products for previously-dormant segments such as antiwrinkle creams and men‘s skincare. creating brand awareness using movie idols in television commercials proved crucial to gaining a strong 37 .6 per cent for the skincare and shampoo markets respectively. adapting to local culture and preferences has been critical. But at a quarter of the international retailing price. Garnier redesigned its Excellence hair-colouring product that involved more manual work to mix the dye. as Dayal calls it. hard market research and the p ower of our global R&D which yielded the right kind of innovation. Lancome and Garnier tried and tested a variety of innovation and marketing strategies that appear to have paid off. where are the company's next opportunities In business. says Dinesh Dayal (MBA ‗84J). to match the frequent use of hair oil. For instance.‖ Dayal told INSEAD Knowledge in an interview. have proved particularly effective. ((L‘oreal‘s CEO Discusses Q4 2011 Results – Earnings Call Transcript. ―It‘s really a mixture of intuition. ―Increasingly our blockbusters have been India innovati on-led products. Meanwhile.5 per cent share of the market in India for hair conditioner. the owner of brands like Maybelline.in India would be instrumental in the company attaining its target of 1 billion new customers. L‘Oreal India‘s chief operating officer. But with still low penetration levels and cut-throat competition. L‘Oreal Paris. as in life. L‘Oreal reportedly has 41. Garnier Fructis Shampoo + Oil. Innovating for a local market. Today.5 per cent and 4. Other successes include an oil-based shampoo. it is the country‘s leading player in the salon products sector. as well as an aggressive marketing strategy. For nearly two decades. it meant new consumers were more willing to buy the product. and 6. ―It‘s a heterogeneous market and each one has its own preferences. On all fronts. for 38 . ―Even within segments that have a lot of usage like shampoos. Giorgio Armani and Yves Saint Laurent. and regularly invites international stylists to conduct workshops and seminars. L‘Oreal launched its luxury products division three years ago.foothold. however. ―There‘s a huge growth and a desire to consume.‖ said Dayal. he adds. Boasting brands like Lancome.‖ Consumer goods are also showing healthy growth rates of about 15 percent. but their small customer base also makes them highly competitive markets. more recently. Segmenting markets The underlying picture is much more complex. New media will add on as niche as the country evolves. is that it‘s not just within one section of the population. product penetration is low. Luxury products may be selling in India‘s cosmopolitan cities like Delhi. It launched the International Hairdressing Academy in 2006 in Mumbai that offers basic and advanced styling instruction. Growing the customer base In the emerging markets.‖ In 1997 when it launched its professional products division. Mumbai and Bangalore. he adds. Kerastase and.‖ observes Dayal. the growth is very high. The greater opportunities. the group has seen strong growth in the luxury sector of between 25 and 30 per cent. ―It‘s flourishing.‖ What‘s also interesting. L‘Oreal targeted a largely unstructured hairdressing industry to market and sell its salon brands -. fragrances or accessories. he explains. with Dayal at the helm of the fledgling operation. Padmanabhan elaborates. according to Paddy Padmanabhan. The company sought to educate salon owners and stylists. are in the second-tier cities like Ahmedabad and Aurangabad. and opened five regional training centres. ―There‘s no one India. providing generous room for growth. whether for cosmetics. and advertising on TV with a very good ambassador will continue.‖ says Dayal. Matrix. ―Television [in India] is here to stay. INSEAD professor of marketing.L‘Oreal Professional. there is a desire to upgrade to performing products. ―[We] are a $200 million company and the fastest-growing subsidiary in the L‘Oreal group. It was around the time when television viewing in India exploded and Indian women came to the forefront in international beauty pageants -. Dayal‘s observation on this is right on the money. Additionally. In fact. Disposable income and exposure to a globalised culture became key turning points. organisational challenges and maintaining the company‘s global culture.example. supply chain automation. ―Innovation is not just about new products. this is an imperative in the extremely competitive Indian marketplace. ―It‘s all across the spectrum with your processes. Dayal acknowledges the challenges that lie ahead with innovating new products.‖ 39 . knowledge of smaller markets. explains Dayal. which are growing very fast but lack access to luxury products and services. But tangible changes were visible only five to seven years ago when women began joining the workforce in droves. a challenge for international players like L‘Oreal that face ―brutal competition‖ from successful local brands like Marico and Dabur India and consumer goods giant Hindustan Unilever.‖ says Padmanabhan.‖ L‘Oreal set up its wholly-owned Indian subsidiary operation in 1994 with the launch of its Garnier Ultra Doux shampoo products. your back operations. your business model and organisation.two events that stirred consumer interest in cosmetics.‖ says Dayal. ―We sometimes feel we are at the beginning so that puts us in a very confident mood. there is a very large opportunity in the middle market where consumers want to consume but not at very high price points. Apart from hair colour. perfumes and hair care. Has over 60. Continuing research and innovation in the interest of beauty which assures that the L‘Oreal Cosmetics offers the best to their consumers. Leader in the growing cosmetics industry despite the competition in the market.000 employees globally 5. sun protection. make-up. skin care.Cosmetics Sector FMCG Because you‘re worth it Tagline/ Slogan Best caters to the demands of women of different cultures through USP constant research and innovation SWOT Analysis 1. High-end advertising which adapts to the culture of target audience 4. the company is active in the dermatological and pharmaceutical fields and is the top Strength nanotechnology patent-holder 40 in the United States . 2. 3.CHAPTER-7 SWOT ANALYSIS L'Oréal Paris Parent Company L'Oréal Category Personal Care brands. Growing competition within the field of cosmetic brands 2. Stiff competition from other leading cosmetic established Weakness brands 1.6. the aging and also the masses of the developed countries 2.Revlon 2. Growing market that ranges from the affluent. 1. L‘Oreal Group may be producing the best of its line. Decentralized organizational structure. Competition (main) 1. there is also the difficulty in the control of L‘Oreal 2. people may find that their products are not of their basic needs and would Threats skip buying L‘Oreal products. Lakme 41 . L‘Oréal has operations in over 130 countries and over 4o manufacturing plants 1. Economic downturn that is quite evident in other countries 3. Greater market share because of the numerous patents Opportunity registered by the Company. Due to the many subdivisions of the Company.Chambor Competitors 3.  ADVERTISING RESEARCH: Under this I have concluded that whether the advertisement appeals the consumers or not.FINDINGS  CONSUMER RESEARCH: Consumer research deals with consumer and their problems and solution to the problems. In this I came to know about the consumers need and expectation levels regarding products and ascertainable levels of consumer satisfaction. This also includes evaluating and selecting the proper media-mix and measuring advertising effectiveness. 42 .  PRODUCT RESEARCH: Under product research I came to know about the modification which consumers wants as Rates of LOREAL products are very high so the middle class cant afford it.  The exact thinking of the respondents cannot be found out could be one of the limitations.  Customers cant not correlated while filling up Questionnaire. 43 . So a chance of bias information is not totally eliminated.LIMITATIONS OF STUDY  The time given was not sufficient as only one person had to conduct the survey.  Area of survey is small.  Findings are made with in the limited Information & views of the respondents.  Customers were not cooperative.  Should give their product at affordable price  More and more promotion techniques should be there to promote it  Should be available in every place.SUGGESTIONS  It is suggested that LOREAL now a days is totally depending up on Fashionable or Teenagers needs so I think that they must innovative & creative to launched new product along with this to stay or compete in the market for the longer period. 44 . inthe context of Indian customers. As the study has been conducted. Always give first priority to their customers. conditioning the specified motives of Indian people. Further the study helped in identifying the reasons which stops the customers to buy Loreal Products over other products and to understand customer Brand knowledge with regard to Loreal.CONCLUSION The present study comes to the floor with the revelations having exciting and full of curiosity determinants in relation to the specified objectives to understand and analyze the4P aspects of marketing for Loreal. 45 . putting aside the motives outside India. which make them distinct from the rest Therefore that is why the customers are increasing day by day. It is concluded that working nature of LOREAL is of such kind that they. The research conducted was also helpful in identifying the frequency of purchase and usage of the Loreal products. LOREAL promises that it is the sole company that gives good experience to the customers. the investigation perspectives have been thrown. The proof of success is that LOREAL is flourishing quickly in the world. SECOND EDITION. EDITION 2005. NAMAKUMARI MARKETING MANAGEMENT.BIBLIOGRAPHY Books:   PHILIP KOTLER. V. Magazines    Newspapers    The Times of India The Hindustan Times The Economic Times Business India India Today Business Today 46 .S RAMASWAMY AND S. MARKETING MANAGEMENT. No Age:Contact No:- Q2. Hair care e. Rate the product about your satisfaction? a. Very Good c. Skin Care b. Yes b. No Q5. Hair color d. Which type of product do you owned? a. No Q3. Are you aware about promotional policies of L’Oreal? a. By which source you come to know about L’Oreal? a. For Mens Q4.P QUESTIONNAIRE Name:Occupation:Q1. No 47 . Are you aware about L’Oreal? a. Excellent d. Yes b. Hoardings d. Newspaper c. Yes b. T. Mouth of Tongue Q7. Make up c. Are you satisfied with the product and price of L’Oreal? a.V b. Good b. Poor Q6. Yes b.SWAMI VIVEKANANDA UNIVERSITY SAGAR M. Have you owned any product of L’Oreal? a.
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