L'Oreal & The Body Shop

Strength Weakness

Exist for more than 100 years. Ranked 346 among the 500 largest corporations in the

world (Fortune 2009) Their total revenue is their major strength Consequent spending on Research and Marketing

plans Celebrity endorsement with Scarlett Johanssons and

Jane Fonda (Carvajal 2009) Product variety (2000 products on the market) Affordability factors are considered Four different segments:

-Consumer products: Products sold in mass market retail channels

-Professional products: Products used and sol in hair salons

-Luxury Products: Products sold in selective retail outlets.

-Active cosmetic: dermocosmetic skin care products sold in pharmacies and specialist section of drugstore.

L'Oreal possess many brands under those different segments:

Consumer products:

-L'Oreal Paris-Garnier-Maybelline New York-Softsheen.Carson-CCB Paris

Porfessional Products

-L'Oreal Professionel-Kerastase-Redken-Matrix-Mizani-Shu Uemura Art of Hair

Luxury Product

Faced several litigation

For instance:

-The prime concern of L'Oreal is highlighted as being

"Diversity is a Priority" (L'Oreal) however in 2007, according

to The Age, L'Oreal was found guilty of racism and was fined

41,000 US dollar.

-Fallacious advertisement. L'Oreal ads where Penelope Cruz

a L'Oreal model was wearing fake eyelashes, and the ad

claimed that their mascara would bring 60% longer eyelashes

(Style Crunch 2007).

-Ads of L’Oreal Australia claimed their product to be therapeutics and were proved not to be

-Found guilty of racism in 2007 for not wanting to recruit black women for their advertisement

Planning to stop animal testing in 2013. Use of nanoparticles in products and this can be

dangerous for consumers. Scandals facing the acquisition of The Body Shop. The

main purpose of The Body Shop was to promote natural product together with their values concerning their responsibilities towards the environment. When sold to l'Oreal, it was considered as unethical. Indeed one example can be that L'Oreal does animal testing and The Body Shop is against animal testing.

Failed to signed the compact for safe cosmetics (which is to avoid use of certain chemicals)

Estee Lauder

Strength Weakness

Estee Lauder now exist for 64 years Has experience in the market Known as prestige cosmetics Hold the second largest market share after L'Oreal Massive spending on Research and Development, Marketing strategy and Integrated Marketing

communication strategy Estee Lauder possesses 27 brands

-American Beauty

-Aramis

-Aveda

-Bobbi Brown

-Bumble and bumble

-Clinique

-Daisy Fuentes

-Darphin-Donna Karan-Estée Lauder

-Flirt!

-Good Skin

-Grassroots

-Jo Malone

expensive products Nanoparticles in their products Faced several litigation:

2004 was liable to clean up hazardous waste in New York. The cleaning was estimated to be worth US$36million

2005 accused of price fixing and paid US$175million in cosmetics products to clear the lawsuit, plus 39 million customers we having a product between particular days would be eligible for a free product between $18-25

Failed to signed the compact for safe cosmetics (which is to avoid use of certain chemicals)

-Kate Spade (divested)

-Kiton

-Lab Series

-La Mer

-MAC Cosmetics

-Michael Kors

-Missoni

-Ojon

-Origins

-Prescriptives (discontinued as of January 31, 2010)

-Sean John Fragrances

-Smashbox Cosmetics[7]

-Stila (sold)

-Tommy Hilfiger-Tom Ford Beauty

No animal testing