BECAUSE YOU ARE WORTH IT

L’Oréal was established in 1909, and by now the company is one of the leaders in the beauty market while providing a wide

variety of products for each segment of its market tailored to meet expectations of its customers.

L’Oréal does and has always have believed in the strategy on innovation and diversification. Due to the products’ uniqueness,

L’Oréal’s product became well-known and popular among all ethnic groups, not depending on gender.

Introduction

• Before the facial cosmetics, L’Oreal was known as a hair-color formula developed by French chemist Eugene Schueller in 1907. It was then known as "Aureole".

• Established in 1909

• 100 year old company

• Worldwide leader in cosmetics

• Distribution: 130 countries

• 23 global brands

• 5 Key expertise: Hair care, Skin, Hair color, Make up & Fragrance

• 67,662 employees worldwide

• 17.5 billion Euros consolidated sales in the year 2008

• Mass-market luxury brand image

Mission

The company’s mission is to promote an approach to beauty that is fun, affordable,

fulfilling, genuine and generous while meeting all stakeholders’ expectations by providing a portfolio of deeply diversified

range of products.

Divisions

• Consumer Products Division

• Professional Products Division

• Active Cosmetics Division

• Luxury Products Division

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COSMETICS, UNIQUE EXPERTISE

A brand portfolio that is unique in the world

Market Overview

• The L’Oreal Group is present worldwide through its subsidiaries and agents. L’Oreal started to expand its products from hair-color to other cleansing and beauty products.

• The L’Oreal Group today markets over 500 brands and more than 2,000 products in the various sectors of the beauty business. Such includes hair colors, permanents, styling aids, body and skincare, cleansers and fragrances. Indeed, the L’Oreal Group have reached the peak that all cosmetic brands sought after.

• L’Oreal Groups could still be considered as the leading supplier of cosmetics and hair-color.

RESEARCH, DRIVING GROWTH

More than 500 patents filed per year

8 research centers in Europe, 3 in North America and 3 in Asia

3 evaluation centers in Europe, 4 in America and 3 in Asia

480-million-euro R&D budget

2,900 staff members

1/3 of the R&D budget is earmarked for advanced research

Numerous scientific papers in peer-reviewed journals and presentations in congress

Market Overview

• In 1996, L’Oreal became the second largest cosmetics maker in the US, following the acquisition of Maybelline.

• In 2005, the company’s revenues increased by nearly 6.5% to US$18.1 billion, reflecting like-for-like growth of 4.8%

• 15.8 percent of the global cosmetics market, continued to gain market share and planned to expand in Central Asia, India and the Middle East TODAY

Market Overview

• L'Oreal ranked as one of the “world’s most ethical companies” according to

ETHISPHERE MAGAZINE in 2007

• L'Oréal is the ideal employer for business students in Europe in 2008

– (Trendence Europe survey, Managers edition)

Competitors

• Estee Lauder

• Revlon

• Shiseido

Finding the Core Value

• Who Am I?

• Who Am I for?

• Why buy me?

• Why befriend me?

Core Values:

• Striving For Excellence

• Perfection is our goal.

• A Passion For Adventure

• Enrichment Through Diversity

Finding the Core Value

• The Means End Chain:

Beauty Ingredients Well-Being

SatisfactionEnhanced Beauty

The Creative Brief

• Advertising objective• Issue/Problem• Target Audience• Recommended Media• The core promise• Tone of voice

Advertising Objective

Traditional forms of advertising, through glossy magazines and TV, have been the

preferred and accepted advertising approach. However, advertisers have become far

more selective in targeting their markets and spending their advertising and

promotional budgets.

Issue/Problem

Poor reach to the average people of underdeveloped countries.

Target Audience

• Demographics: According to the different product divisions

• Consumer:18-50+ years• Male: 35%• Female:65%• Core Target: 25-35 years old• Psychographics: She/he who is searching for

excellence in beauty and who has an high interest in fashion.

Recommended Media

• Print • TV• OOH• Internet ( Newsletter & E-mail)

Core Promise

To guarantee satisfaction forcustomers

Tone of Voice:

• Glamorous• Soft & Caring

VINTAGE L'ORÉAL ADS

What began with just one hair-dye product has become a company with more than 80,000

products. Here's a look back at some of L'Oréal's iconic images and vintage ads.

L'ORÉAL'S OFFICE, 1909

L'Oréal Ad, 1922

THANK YOU

ROMA KHUBANIPGPMM ‘08-10