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History Of L’Oreal

• In 1907, Eugène Schueller, a young French


chemist, developed an innovative hair-
color formula. He called his improved hair
dye Auréole.
• Schueller formulated and manufactured his
own products, which he then sold to
Parisian hairdressers.
• In 1920, the small company employed three
chemists. By 1950, the research teams
were 100 strong; that number reached
1,000 by 1984 and is nearly 2,000 today.
• 1970, Acquisition of Biotherm
Contd..
• In 1994,Excellence Crème was launched
internationally and rapidly became
world leader in hair colorants.
• Winning over India: In 1994, L'Oreal
becomes the 1st international
cosmetic group to which the Indian
government grants the status of
wholly-owned subsidiary.
• In 1994 the acquisition of Maybelline,
the leader in mass-market make-up in
the United States.
• 1996: Fructis, the green tornado!

.
• 2000, Acquisition Of Matrix

• 2002, L'Oreal expresses its sense of social
responsibility by joining the UN Global Compact.

• 2004,L’oreal for Men-Because they’re worth it too !

• 2006, Diesel in the L'Oreal engine

• 2006,Acquisition Of BODY SHOP

• 2009, Centenary of L'Oreal- Happy Birthday !
Company overview
• Mission : At L’ORÉAL, “we believe that everyone aspires to
beauty. Our mission is to help men and women around the
world realize that aspiration, and express their individual
personalities to the full. This is what gives meaning and
value to our business, and to the working lives of our
employees. We are proud of our work.”

GROUP PROFILE
- A century of expertise in cosmetics
- € 17.5 billion consolidated sales in 2008
- 23 global brands*
- 130 countries
- 67,662 employees
- 628 patents filed in 2008.
* These brands' annual sales are superior to 50 million euros
Awards and Recognitions
• 2001: “world’s most respected companies”: The
study also places the group in 2nd position
amongst the most respected companies in the
consumer goods sector throughout the world.
In the general ranking, L'Oreal came in 31st
place amongst the top 50 "most respected
companies".
• 2002: 7000 women voted, 7 L'Oreal Group
products were selected. L'Oreal was honored
by winning seven of the 21 grand prizes
awarded.
• 2003:L’oreal supports the global compact
• 2004:Universum and Trendence, students in
business schools throughout Europe chose
L'Oreal as the ideal company to work for
Contd..
• 2005: L'Oreal ranked first in reputation
survey
• 2006: L'Oreal honored for its
commitment against aids
• 2007: L'Oreal receives innovation and
consumer intelligence award in best
innovator awards 2007
• 2008: L'Oreal ranks first in the list of
the world‘s 100 biggest beauty
firms.
• 2009: L'Oreal received two of the nine
Prix d’Excellence 2009 beauty awards
from the international women’s
BRANDS

C o n su m e r P ro d u cts
G a rn ie r
L 'O re a l P a ris
L e C lu b D e s C re a te u rs
M a y b e llin e N Y
S o ftsh e e n . C a rso n

P ro fe ssio n a l p ro d u cts
L 'O re a l P ro fe ssio n e l
K e ra sta se
R e d k e n
M a trix
M iza n i
S h u U e m u ra A rt o f H a ir
K e ra sk in E sth e tics



L u x u ry P ro d u cts
Lancome
Biotherm
Helena Rubinstein
Kiehl s
Shu Uemura
Giorgio Armani
Ralph Lauren
Cacharel
Viktor & Rolf
Diesel
YSL beaute

Active
Cosmetics
Vichy
La Roche - Posay
Inneov
Skin Ceuticals
Sanoflore
Swot Analysis
-Internal Analysis
 

STRENGTHS WEAKNESSES
• Continuous • Decentralized
research and organizational
innovation. structure
• Developed • Profit Margin
activities in the • Coordination and
field of Control of
cosmetics, activities
dermatologic-al
and
pharmaceutical
fields.
External Analysis

 

OPPORTUNITIE THREATS
S • Growing
competition
• Growing demand
for beauty • Products are
products within the
reach of
• Greater market
developed
share
countries only.
• Spending habits
of the
consumers and
economic
Branding Strategy
• In 1972, L' Oreal launched the
legendary campaign "Because I am
worth it,“
• distributing its products through
agents and consignments to the US,
South America, Russia and the Far
East.
• Owen-Jones who had joined L'Oreal in
1969, decided to embody their (the
brands') country of origin, turning
what many marketing gurus
considered a narrowing factor into a
marketing virtue.
Brand Extensions
• L'Oreal to enter the kids shampoo in
1998.
• The company realized the L'Oreal
name, long associated with
women's hair care, would capture
instant credibility with moms.
• When L'Oreal first unveiled its L'Oreal
Kids shampoo line early 1998,
retailers were skeptical.
Advertising and
Promotion
• L'Oreal had a unique promotion policy for all
its brands
• A brand, which sold in mass-market outlets.
• Advertised and promoted itself in a way
similar to brands sold in department
stores.
• In late 1990s “external charges", which
included L'Oreal's advertising and
promotions expenditure jumped from 37%
to 47% of sales.
Competition
• Cosmetic majors like Revlon and Avon and Nivea
vied for shelf space.
• The giant FMCG companies like Unilever and P&G.
• Local competitors like HLL-Lakme in India, Dark
and Lovely in Africa, and the erstwhile Shu
Umera in Japan (L'Oreal later acquired this
brand).
L 'O re a l In d ia P riv a te L im ite d is a w h o lly
o w n e d su b sid ia ry o f L 'O re a l S . A .
H e a d q u a rte re d in P a ris
L 'O re a l In d ia h a s o v e r 6 0 0 e m p lo y e e s
a n d h a s a stro n g tra ck re co rd w ith
co n siste n t d o u b le d ig it sa le s g ro w th
y e a rly .
In In d ia , L 'O re a l o p e ra te s th ro u g h fo u r
d iv isio n s :
- Consumer Products Division
- Professional Products Division
- Active Cosmetics Division
- Luxury Products Division
Products
• For Women- Because You’re
Worth It !
üSkin Care
üHair Care
üHair Color
üCosmetics

• Skin Care
• Hair Care
• Styling
Because We’re Worth It Too!

• Hair Care :Shampoos of 3 flavors


• Very Berry strawberry shampoo
• Cheeky cherry shampoo
• Tropical Mango shampoo

Brand
Ambassador
s
• Aishwarya Rai
• Sonam
Kapoor
• Freida Pinto
• Evangeline
Lilly
• Elizabeth
Banks
• Beyonce
Knowles
• Pierce
You're worth it - if white.
L'Oreal guilty of racism
L’Oreal Unisex Salon

L’oreal Parlours
Conclusion
• Above and beyond its financial
success, however, L'Oreal's track
record reflects an endless quest:
• A quest for innovation,
• A quest for excellence
• A quest for diversity and a range of
cultures
• A quest for purpose, a cornerstone of
the L'Oreal approach, combining
economic growth, ethics, social and
environmental responsibility
• A quest filled with passion,
transcending borders in a bid to
Future plans
• L'Oreal turns to cheaper products to
spur future growth
• The Body Shop has drawn up a fresh
strategy, including aggressive
discounts and opening of new stores,
to tap the market.
• They are focusing on the south market
and are planning to open 10 stores in
places like Chennai and Hyderabad.
• At present, the company is operating 25
stores in eight Indian cities under a
franchise agreement with retail major
Future Group, controlled by Kishore
Thank you