Marketing Analysis
"As the biggest beauty brand in the world, L’Oréal Paris has an unparalleled commitment to technology, research and innovation, providing groundbreaking, high-quality products for women, men, and children of all ages and ethnicities. L’Oréal Paris is notably dedicated to celebrating the diversity of beauty – the company’s broad range of spokespeople include for example Andie MacDowell, Beyoncé Knowles, Diane Keaton, Penelope Cruz, Aishwarya Rai, Eva Longoria, Milla Jovovich, Laetitia Casta et Heather Locklear."
"As the top beauty brand sold in retail outlets, L’Oréal Paris makes the most innovative products accessible to everyone. Its ambassadors embody a certain beauty ideal summed up in the legendary signature: “Because you’re worth it.”
Canada
Because you're worth it
The headquarters is located in Montreal, Canada: 1500 University streetBureau 600 MONTREAL, QCH3A 3S7. A few of the brands available in Canada are; BIOTERM, cacharel, clairsonic, DIESEL, essie, GARNIER, KéRASTE paris, L'Oréal Paris, MATRIX, MAYBELLINE, the body shop, VICHY, URBAN DECAY.
Product Differences
The Consumer Products division is in first place of demand. There was an increase demand for L’Oréal Luxe; which included urban decay, clarIsonIc and KIehl’s.
The growing demand in Canada seems to be voluminous hair, shiny hair, for men and women L'Oéal not only cater to the needs of women but it also expands its demographics to men. With innovated technologies like straighteners, curlers that produce heat that damages hair, the North American consumers are in search for products that will assist them in looking their best and protecting their hair.
The Consumer Products division is in first place of demand. There was an increase demand for L’Oréal Luxe; which included urban decay, clarIsonIc and KIehl’s.
The growing demand in Canada seems to be voluminous hair, shiny hair, for men and women L'Oéal not only cater to the needs of women but it also expands its demographics to men. With innovated technologies like straighteners, curlers that produce heat that damages hair, the North American consumers are in search for products that will assist them in looking their best and protecting their hair.
Advertising/Promotional Differences
The STUDIO LINE SILK & GLOSS: STUDIO LINE SILK & GLOSS HOT STRAIGHT® CREAM 200ML product for women smooths hair while simultaneously protects it from heat.
The competitive advantage of L'Oréal is that they offer a men's department. CLICK HERE to view the Men's Expert official website. The departments include: Face Care, Shaving, and Hair Care.
The STUDIO LINE SILK & GLOSS: STUDIO LINE SILK & GLOSS HOT STRAIGHT® CREAM 200ML product for women smooths hair while simultaneously protects it from heat.
The competitive advantage of L'Oréal is that they offer a men's department. CLICK HERE to view the Men's Expert official website. The departments include: Face Care, Shaving, and Hair Care.
Packaging Differences
Here in Canada, our official languages are English and French. all the packages which include bottles to tubes are have both French and English translated.
Here in Canada, our official languages are English and French. all the packages which include bottles to tubes are have both French and English translated.
SOUTH AMERICA: Brazil
porque voce vale muito
"Brazil is one of the world’s most dynamic beauty markets and L’Oréal is ready to grasp all the opportunities it holds. A closer look at an emblematic example of the universalisation strategy in all its dimensions."
The headuarters in Brazil is located in Rua Sao Bento, 8-20º et 21º CEP 20090-010 RIO DE JANEIR. A few of the brands available BIOTERM, cacharel, DIESEL, L'Oréal Paris, REDKEN, VICHY, MATRIX, MAYBELLINE and many more.
Product Differences
In Brazil, the Emporio body Store, a partner of the body shop, markets cosmetics within its franchise network, offering consumers 'naturally-inspired sensorial products'.Popular products include: haircare and hair colourants, for which represented 60% of sales in 2013 while skincare, make-up and deodorants make up for the rest. Brazil is located in South America, and has a hot climate; heat makes hair frizzy and ladies and men are in desperate need for a product to cater to their yearly needs. The number one market is for elvive by L’Oréal Paris. With the growing trend of straight and flowy hair, the brand launched the Quera-Liso range, in the Rio lab.
Product Differences
In Brazil, the Emporio body Store, a partner of the body shop, markets cosmetics within its franchise network, offering consumers 'naturally-inspired sensorial products'.Popular products include: haircare and hair colourants, for which represented 60% of sales in 2013 while skincare, make-up and deodorants make up for the rest. Brazil is located in South America, and has a hot climate; heat makes hair frizzy and ladies and men are in desperate need for a product to cater to their yearly needs. The number one market is for elvive by L’Oréal Paris. With the growing trend of straight and flowy hair, the brand launched the Quera-Liso range, in the Rio lab.
Advertising/Promotional differences
L’Oréal categorized eight types of hair globally, which are all found in Brazil. Similarly are the skin colours. This diversity provides opportunities for improvements and innovations to the brand.
Door to door sales have been in a decline demand in North America, but in Brazil, it is essential to generate sales. Sales representatives go door to door and sell the product to women. This provides customers with the option of paying in small amounts, from which single mothers or low income families benefit from. Studies show that the relationship with the sales rep encouraged customer loyalty.
Brick and mortar locations include: pharmacies, drug stores ect...
L'Oréal is reliant on social media to reach its customers. According to studies, Brazilians prefer brick and mortar as oppose to online shopping, so they have set up locations to offer their products and services.
L’Oréal categorized eight types of hair globally, which are all found in Brazil. Similarly are the skin colours. This diversity provides opportunities for improvements and innovations to the brand.
Door to door sales have been in a decline demand in North America, but in Brazil, it is essential to generate sales. Sales representatives go door to door and sell the product to women. This provides customers with the option of paying in small amounts, from which single mothers or low income families benefit from. Studies show that the relationship with the sales rep encouraged customer loyalty.
Brick and mortar locations include: pharmacies, drug stores ect...
L'Oréal is reliant on social media to reach its customers. According to studies, Brazilians prefer brick and mortar as oppose to online shopping, so they have set up locations to offer their products and services.
Packaging Differences
The official language in Brazil is Portugese, so the products are all translated into portugese in order for the customers to understand what they are buying. "porque voce vale muito" translates to "Because you're worth it". This is an image of a bottle found on the Brazilian Facebook Page.
The official language in Brazil is Portugese, so the products are all translated into portugese in order for the customers to understand what they are buying. "porque voce vale muito" translates to "Because you're worth it". This is an image of a bottle found on the Brazilian Facebook Page.
EUROPE: France
parce que vous le valez bien
The Headquarters in France is located in Centre Eugène Schueller 41, rue Martre 92117 CLICHY.
The list of brands available are much larger; BIOTERM, cacharel, clairsonic, DIESEL, essie, GARNIER, KéRASTE paris, L'Oréal Paris, MATRIX, MAYBELLINE, the body shop, VICHY, URBAN DECAY, CREATEURS DE BEAUTE, HR, LANCOME, MIZANI, PUREOLOGY, Ralph Lauren, SHU UEMURA, and many more.
The list of brands available are much larger; BIOTERM, cacharel, clairsonic, DIESEL, essie, GARNIER, KéRASTE paris, L'Oréal Paris, MATRIX, MAYBELLINE, the body shop, VICHY, URBAN DECAY, CREATEURS DE BEAUTE, HR, LANCOME, MIZANI, PUREOLOGY, Ralph Lauren, SHU UEMURA, and many more.
Product Differences
There was a 1.9% growth in Southern Europe.
Branding: The popular brands included; L’Oréal Luxe by lancôme and KIehl’S, and the Consumer Products division by GarnIer and L’Oréal paris and the la roche-posay and Vichy from the Active Cosmetics division.
L'Oréal has focused their production for summer. The product shown below, is for hair lightening.
"L'Oréal Paris invents his progressive lightening jelly effect natural or highlighted hair.
Without rinsing, easy application ... it reacts under the action
of heat for sustainable light effect. summer never ends never in your hair! "
There was a 1.9% growth in Southern Europe.
Branding: The popular brands included; L’Oréal Luxe by lancôme and KIehl’S, and the Consumer Products division by GarnIer and L’Oréal paris and the la roche-posay and Vichy from the Active Cosmetics division.
L'Oréal has focused their production for summer. The product shown below, is for hair lightening.
"L'Oréal Paris invents his progressive lightening jelly effect natural or highlighted hair.
Without rinsing, easy application ... it reacts under the action
of heat for sustainable light effect. summer never ends never in your hair! "
Advertising/Promotional Differences
The number one factor that makes this innovated product attractive to consumers is that it is not a bleaching product; it simply generate a gradual enlightenment process. Women are always trying to look their best, and simultaneously care maintain their natural beauty. Bleach contains hydrogen peroxide which is used with ammonia and a toner to lighten and change the shade of hair. This can cause serious damage to the hair. Some effects include: loss of moisture in hair, breakage, burning, and discolouration.
Click to view tutorials for the lightener
The number one factor that makes this innovated product attractive to consumers is that it is not a bleaching product; it simply generate a gradual enlightenment process. Women are always trying to look their best, and simultaneously care maintain their natural beauty. Bleach contains hydrogen peroxide which is used with ammonia and a toner to lighten and change the shade of hair. This can cause serious damage to the hair. Some effects include: loss of moisture in hair, breakage, burning, and discolouration.
Click to view tutorials for the lightener
Packaging Differences
The official language of France is French and all the products have been translated. The packaging are standardize as in every country.
The official language of France is French and all the products have been translated. The packaging are standardize as in every country.
Click the link below to view France's L'Orégal website
Centralized/Decentralized Marketing Strategy
L'Oréal uses the decentralized marketing strategy; and they use the "think global, act local" philosophy. They use local production facilities, distribution centres, advertising centres, market research companies, sales representatives, and/or retail partners to target specific international markets.
L'Oréal has set up headquarters all over the world like in Europe, South-East Asia and South America. Rich countries like Japan and New York have Research centers and regional research poles.
L'Oréal has set up headquarters all over the world like in Europe, South-East Asia and South America. Rich countries like Japan and New York have Research centers and regional research poles.
The advantages of using a decentralized strategy are:
- Proximity to market: L'Oréal is able to distribute locally since it manufactures locally, this gives the advantage of targeting smaller communities that centralized companies may find expensive to target. Because of proximity, the company saves in transportation and storage costs.
- Flexibility: As the brands [e.g. MATRIX, Garnier] grew in specific regions, a decentralized company may spot the trend and maximize sales. Advertising and promotional activities can be favoured to local events, competitive prices help the brand to stay on top of the competition, and sale efforts are aimed towards retail distribution.
- Cultural sensitivity: In order to understand the culture you must participate in the activities. When businesses have citizens as sales representatives, it helps for translations such as metaphors, for example, in North America, "Bro you're so cool" can be interpreted cool as temperature to a foreigner.
Branch Plants/Liscenings/Acquisitions to expand?
Here is a list of countries and products that have dominated the target market.
L'Oréal Paris uses the brand development strategy, this simply means that instead of purchasing a domestic company, they introduce their own brand to compete. This strategy is extremely expensive, but with the reputation and history that L'Oréal has, they can afford it. Year by year, their profits increase in all regions. The company can and has set up research facilities in local markets, that aids local researchers to develop innovated products.
L'Oréal Paris uses the brand development strategy, this simply means that instead of purchasing a domestic company, they introduce their own brand to compete. This strategy is extremely expensive, but with the reputation and history that L'Oréal has, they can afford it. Year by year, their profits increase in all regions. The company can and has set up research facilities in local markets, that aids local researchers to develop innovated products.
Advertisements for Local Markets
The brand modifies its advertising for local markets depending on:
- Consumer Profile: L'Oréal develops an image that consist of a demographic, motivational, and purchasing profile. Demographics look at the target population's age, gender, family lifestyle, and religious and ethnic background. L'Oréal targets kids, teens, women and men, people of all sizes and shapes, race,ethnicity and lifestyle. Their goal is to expand globally and make their products available to everyone, everywhere.
- Motivational Profile: understanding why consumers buy. To aid marketers understand, they rely on Thorndyke's pain vs pleasure theory and Maslow's hierachy of needs, and the emotional/rational theory. L'Oréal prides itself for providing beauty for everyone.
- Purchasing Profile: determining who purchases the product, when, where, and how. For example the busiest shopping seaon in North America is the Christmas season, when 60% of retail revenue is generated. Beauty and hygienic care is year round and always in demand. As a consumer, on a monthly basis- or ever other week- I find myself in the makeup section and skin care or hair care section.
Direct Competitors
Beauty and Personal Care: Top Global Players by Value 2010/2011
Company:
Company:
- Procter & Gamble Co, The
- L’Oréal Groupe
- Unilever Group
- Colgate-Palmolive Co
- Avon Products Inc
- Beiersdorf AG
- Estée Lauder Cos Inc
- Johnson & Johnson Inc
- Shiseido Co Ltd
- Kao Corp
- Nivea is famous for their Nivea Cream a baby, Nivea is not as successful as the cosmetic giant L'Oréal. Their approach to market their is different from L'Oréal, where they perceive a family sensation. In 2010, they chose a new approach when Rihanna was appointed the ambassador.
2. Comapnies like Estée Lauder and Coty are targeting China. This poses a threat because L'Oréal has been prompting Clarisonic in China, which has a market for skin care.