L’ORÉAL“Because It Is Worth It”

Group Members

• Shivani sharma• Anitha nadar

• Jay naik• Kavita more

The History Of the company…

• In 1907, a young French chemist Eugéne Schueller developed an innovative colour formula;

• In 1909, he registred his own company;• In 1920, the small company employed 3

chemists;• In 1912, Eugéne Schueller started to

export his products;• In 1933, he created and launched Votre

Beauté, a magazine devoted to women;• In 1953, L‘Oréal won an advertising

Oscar.

About the industry

The cosmetic industry is a profitable business for most of the manufacturers of cosmetic products.

The cosmetic industry world wide seems to be continuously developing, many famous companies sell their cosmetic products online also in countries in which they do not have representatives.

• L'Oreal on the road to greatness

• Becoming number one in the beauty industry

• First steps : the model takes shape

• The diversity of beauty throughout the world

2000-present 1909-1956

1957-19831984-2000

HISTORY

Operation• L'Oreal is the world largest cosmetics and beauty

company. They have over 500 products. • This brand concentrates on:• Hair color• Skin care• Sun protection• Make up• Perfumes • Hair care

Our brand’s

BECAUSE YOU'RE WORTH IT

PRODUCT TARGET• L’Oreal is mainly used for the younger people

like teenagers as most of their products involves make up which most teenagers like.

• L'Oreal also targets their products to older women.

• Their slogan “because we’re worth it” shows that the product is a luxury product which suggests it is could be expensive.

• L'Oreal's product, reached the top 100 brands of The Brand Trust Report published by Trust Research Advisory in India

MARKET SHARE OF L’OREAL

Other brand’s

59%

L'Oreal41%Hair colour 20%Skincare 6.5%Shampoo 4.6%

Competitors in Indian market

• To keep the different brands in one basket and yet keeping the differentiation.

CHALLENGE

• Good brand management was all about hitting the right target audience with the right product.

STRATEGY

Understandings

• Company was brilliant in identifying the needs, cultures and aspirations of different kinds of customers in diversified regions.

When it First Entered the Market

• Gender Segmentation

• “combination of low price and natural ingredients would fit India’s market,

women use plants and herbs as part of their beauty culture”.

specifically catered to the women of India,

how it should carve a niche market for itself in the Men’s sector as well.

• Income Segmentation: 2 main segments:

the poorer masses and the rest• marketed its product • low in cost to attract the poorer

masses, and her efforts in reducing ingredients to cut price reveals her aim to minimize costs as much as possible.

NOT YET TARGETING middle class or upper class

• did not make any distinct segmentation of the richer classes

The “L’Oreal Makeover”• Income Segmentation: • the quickly rising middle class which was

gaining in affluence. • fastest growing income class that

represented a highly untapped market potential due to their radically different mindsets from the masses.

• Age Segmentation: • the younger middle class from the more

conservative, often older Indians, • showed an increased interest in capturing

the market share of the younger Indians.

• Psychographic Segmentation:

• L’Oreal segmented India into different groups based on their thinking and behavior from the older

• more conservative Indians who held conservative values of thriftiness more strongly and stubbornly,

• the younger more impressionable generation who had developed a very different and westernized view on spending and culture

TARGETING young affluent middle class females,

especially those with graying hair• maximum profits as it not only

possessed the purchasing power that masses lacked, but more critically a modernized mentality

• these people more receptive to purchasing L’Oreals’ more luxurious and expensive products..

L’Oreal also target women that sought benefits from using its products

• no product that solved women’s hair greying problems

• Middle aged and working women became the main target of the company.

YOUNG MIDDLE CLASS

• who did not mind using products that damaged their hair as long as they were cheap due to monetary problems,

• these women were more educated and concerned for the need to have healthy beautiful hair, as well as more equipped with the purchasing power to do so

LOWER INCOME MASSES

• introduced new products like ‘Colour Naturals’ which be used multiple times and cost only $3.10, translating into increased value for the masses.

• L’Oreal’s strategy targeted the more affluent that were more educated and had more disposable income to splurge on luxury items if they justified their price.

Brand Positioning

• Company has a strong and long-term brand positioning specially within the minds of middle age women and teenage girls.

POSTITIONING L’Oreal hired Ms World in an advertisement • that beautiful women use L’Oreal, thus

positioning itself as not just a basic shampoo, but one that made women beautiful.

• positioned L’Oreal higher in the market compared to the

• home brands which positioned themselves as cheap, value-for-money products which only served the most basic of functions of hair cleaning.

• L’Oreal India launched the program “Beautiful Beginnings” on 7th July 2009, an initiative which aimed to train at least 200 unprivileged school drop-out girls every year to make them employable. It was even inaugurated by Bollywood actress Aishwarya Rai ,

• L’Oreal has historically carried a premium image and price tag

• Viral marketing is a term coined to define the productive ways a marketing message is made available.

• Customers, who have caught the virus, do the selling

• dual positioning strategy in India

• L’Oreal reduced its hair care range prices by 25% in 2010 after it began local production and resorted to another 4% price cut this year

DIFFERENTIATION

Home brands aimed to garner loyalty of existing users

• repeated use by generations of Indians would bring about feelings of trust and dependability

• attracted thrifty housewives who wanted the cheapest products

DIFFERENTITATED : by promising better quality products to the rising middle class

• When L’Oreal first entered India :beauty education was absent, training seemed redundant and hairdressers were well satisfied with cheap local domestic brands

• invested heavily in education and training to boost their status in the community.

Mass Market

ing

• Opted complete makeover of the companies by providing wide range of products.

Modernised

approach

of advertisin

g

• Celibrities from different cultures are used for advertisements.• Programs and events adds more effect to advertisements.

Awareness

• Established education centers are in many countries.• Conducted programs related to hairdressers.

Conclusion

• The L’Oreal Group is the world’s largest cosmetics & beauty company. In our opinion, we think that L’Oreal has successfully created a brand identity as the adverts that present the products make them look more expensive.

Thank You For Your Attention