Description
Cosmetic Industry ---- Supply chain management of L'oreal and Emami.
University of Mumbai
Garware Institute of Career Education & Development Post Graduate Diploma in Management
PROJECT ON SUPPLY CHAIN MANAGEMENT – COSMETIC (L’oreal & Emami)
Name of members – Roll no.
Cosmetic industry The cosmetic industry is a profitable business for most manufacturers of cosmetic products. By cosmetic products, we understand anything that is intended for personal care such as skin lotions or sun lotions, makeup and other such products meant to emphasize one's look. The cosmetic industry worldwide seems to be continuously developing, now more than ever with the advent of the Internet companies. Many famous companies sell their cosmetic products online also in countries in which they do not have representatives.
L’OREAL– INTRODUCTION L’Oreal was founded in the year 1909 by Eugene Schueller, a French chemist who developed an innovative hair color formula. It got its start from the hair color business but soon it developed activities in the field of cosmetics, concentrating on skin care, sun protection, make up, perfumes and hair care. L’Oreal main branches are Cosmetics, The Body Shop and Dermatology. It is also the top nanotechnology patent-holder in the United States. L’Oreal famous advertising slogan is "Because I’m worth it". It has recently been replaced by "Because you're worth it". India’s contribution to the growth of the global cosmetics market is about 60 percent. The biggest contributor to its revenue in India is the consumer products division led by its strongest brand in terms of sales - Garnier.
Consumer Products
Garnier fructice Maybelline Professional Products
L’Oreal Paris
L’Oreal Professional Keraskin
Kerastase
Matrix
Luxury Product
Giorgio Armani Keihl’s Active Cosmetics
Diesel
Lancome
Ralph Laurel
La Roche-Posay Vichy
Supply Chain Management of L’oreal
As we know the brand loyalty of L’Oreal is very high and hence L’Oreal follows a pull strategy. Customers of L’Oreal goes directly to the outlets and buy the products. It also includes the "channel of distribution" - meaning, all the different middlemen a company use to get the product out to the customer. In past 100 years that it has expanded, it has supplied to 130 countries with offices in 58 different countries. To make its presence feel in different parts of the world L’Oreal has acquired many different companies like “The Body Shop. International plc”, known as The Body Shop, which has over 2,000 stores in more than 50 countries. DISTRIBUTION CHANNEL: - Second Level Consumer Marketing Channel
INTRODUCTION OF EMAMI
Emami Ltd. (EL) is the flagship company of the Kolkata based Emami Group,
Emami Limited is one of the major health and personal care FMCG companies in India with its brand presence globally. The focus is on providing the consumers with innovative products which are capable of meeting their multiple needs and add value by enhancing the quality of life. Emami success story is not only weaved around the holistic healing system of ayurveda, but also in its product innovation, dynamic and focused leadership, a strong supply-chain management and unwavering commitment to partners and stakeholders. The popular brands like Boroplus, Navratna, Fast Relief and Fair and Handsome are an outcome of deeper understanding of Indian consumers.
PRODUCTS OF THE COMPANY
1. Fair and Handsome Cream (Hi handsome, hi handsome )
2. Boroplus Antiseptic Cream
(Twacha ka suraksha kawach ) 3. Others • H?air-life • M?alai-Kesar-Cold-Cream • Emami Young & Beauty Cream • N?avratna-Cool-Talc • Sun Screen Shampoo. Supply chain Management of Emami Emami covers all the states with 29 depots across India and enjoys a wide distribution network comprising 2500+ distributors and a direct coverage of 4.15 lacs outlets. Emami has tied up with ITC Ltd. to distribute products through the echoupal outlets, thus ensuring greater rural reach. 2800+ distributors, 4,000+ retail outlets, Brand reach 2.6mn outlets. Domestic Sales on Cash Sales channels are divided into rural and urban sales territories.
Comparision Between L’oreal and Emami
?
L’oreal - Dependence on Western European Market.
Late Entry into Asian markets. Unable to gain much of market share. Competition from Asian company and Ayurvedic company. Mostly distributed in metro cities.
?
Emami - The demand of the products is observed to be grater than competitior products.
Strong and well differentiated brands with leading share positions. Distinctly placed products providing reach to every segment of society. Consumer understanding and systems for building consumer insight. Emani distributed in rural as well as in urban area.
Problems faced by Emami
1)The first and the major problem is that the company does not have direct and permanent contract with retailers. It is general complain that there is a big communication gap between the company and the retailers and no one is to solve their problem. 2)The second problem of retailers is non availability of quick response of distributors. 3)Distributors do not send the ready stock and thus the delivery man suffers the problems when the retailer demands in emergency 4) Second problem is wholesale market; the wholesale market is creating problem entering in distributors areas. 5) As the profit margin with emami products is grater, the retailer want a
weekly delivery to them by the distributior.
6) There is unavailabilty of products in the outsides of ranchi as the the distributiors don’t deliver to these place.
Profitable of Supply chain management – Emami
? The distribution to the retailer outlets should be timely and it would be better if it is done on a weekly basis. ? The orders must be taken timely from the respective retailers. ? The product must be made reachable to the customers in the adjacent areas. ? Should increase the communication between the supplier and marketing, procurement department. ? Should concentrate on implementation of technological advancement for getting competitive advantage. ? Should concentrate more on self- value added product, less depend upon the supplier.
? Should promote it’s brand like other competitors.
? More emphasis on after sales service will also promote the business.
doc_175016471.docx
Cosmetic Industry ---- Supply chain management of L'oreal and Emami.
University of Mumbai
Garware Institute of Career Education & Development Post Graduate Diploma in Management
PROJECT ON SUPPLY CHAIN MANAGEMENT – COSMETIC (L’oreal & Emami)
Name of members – Roll no.
Cosmetic industry The cosmetic industry is a profitable business for most manufacturers of cosmetic products. By cosmetic products, we understand anything that is intended for personal care such as skin lotions or sun lotions, makeup and other such products meant to emphasize one's look. The cosmetic industry worldwide seems to be continuously developing, now more than ever with the advent of the Internet companies. Many famous companies sell their cosmetic products online also in countries in which they do not have representatives.
L’OREAL– INTRODUCTION L’Oreal was founded in the year 1909 by Eugene Schueller, a French chemist who developed an innovative hair color formula. It got its start from the hair color business but soon it developed activities in the field of cosmetics, concentrating on skin care, sun protection, make up, perfumes and hair care. L’Oreal main branches are Cosmetics, The Body Shop and Dermatology. It is also the top nanotechnology patent-holder in the United States. L’Oreal famous advertising slogan is "Because I’m worth it". It has recently been replaced by "Because you're worth it". India’s contribution to the growth of the global cosmetics market is about 60 percent. The biggest contributor to its revenue in India is the consumer products division led by its strongest brand in terms of sales - Garnier.
Consumer Products
Garnier fructice Maybelline Professional Products
L’Oreal Paris
L’Oreal Professional Keraskin
Kerastase
Matrix
Luxury Product
Giorgio Armani Keihl’s Active Cosmetics
Diesel
Lancome
Ralph Laurel
La Roche-Posay Vichy
Supply Chain Management of L’oreal
As we know the brand loyalty of L’Oreal is very high and hence L’Oreal follows a pull strategy. Customers of L’Oreal goes directly to the outlets and buy the products. It also includes the "channel of distribution" - meaning, all the different middlemen a company use to get the product out to the customer. In past 100 years that it has expanded, it has supplied to 130 countries with offices in 58 different countries. To make its presence feel in different parts of the world L’Oreal has acquired many different companies like “The Body Shop. International plc”, known as The Body Shop, which has over 2,000 stores in more than 50 countries. DISTRIBUTION CHANNEL: - Second Level Consumer Marketing Channel
INTRODUCTION OF EMAMI
Emami Ltd. (EL) is the flagship company of the Kolkata based Emami Group,
Emami Limited is one of the major health and personal care FMCG companies in India with its brand presence globally. The focus is on providing the consumers with innovative products which are capable of meeting their multiple needs and add value by enhancing the quality of life. Emami success story is not only weaved around the holistic healing system of ayurveda, but also in its product innovation, dynamic and focused leadership, a strong supply-chain management and unwavering commitment to partners and stakeholders. The popular brands like Boroplus, Navratna, Fast Relief and Fair and Handsome are an outcome of deeper understanding of Indian consumers.
PRODUCTS OF THE COMPANY
1. Fair and Handsome Cream (Hi handsome, hi handsome )
2. Boroplus Antiseptic Cream
(Twacha ka suraksha kawach ) 3. Others • H?air-life • M?alai-Kesar-Cold-Cream • Emami Young & Beauty Cream • N?avratna-Cool-Talc • Sun Screen Shampoo. Supply chain Management of Emami Emami covers all the states with 29 depots across India and enjoys a wide distribution network comprising 2500+ distributors and a direct coverage of 4.15 lacs outlets. Emami has tied up with ITC Ltd. to distribute products through the echoupal outlets, thus ensuring greater rural reach. 2800+ distributors, 4,000+ retail outlets, Brand reach 2.6mn outlets. Domestic Sales on Cash Sales channels are divided into rural and urban sales territories.
Comparision Between L’oreal and Emami
?
L’oreal - Dependence on Western European Market.
Late Entry into Asian markets. Unable to gain much of market share. Competition from Asian company and Ayurvedic company. Mostly distributed in metro cities.
?
Emami - The demand of the products is observed to be grater than competitior products.
Strong and well differentiated brands with leading share positions. Distinctly placed products providing reach to every segment of society. Consumer understanding and systems for building consumer insight. Emani distributed in rural as well as in urban area.
Problems faced by Emami
1)The first and the major problem is that the company does not have direct and permanent contract with retailers. It is general complain that there is a big communication gap between the company and the retailers and no one is to solve their problem. 2)The second problem of retailers is non availability of quick response of distributors. 3)Distributors do not send the ready stock and thus the delivery man suffers the problems when the retailer demands in emergency 4) Second problem is wholesale market; the wholesale market is creating problem entering in distributors areas. 5) As the profit margin with emami products is grater, the retailer want a
weekly delivery to them by the distributior.
6) There is unavailabilty of products in the outsides of ranchi as the the distributiors don’t deliver to these place.
Profitable of Supply chain management – Emami
? The distribution to the retailer outlets should be timely and it would be better if it is done on a weekly basis. ? The orders must be taken timely from the respective retailers. ? The product must be made reachable to the customers in the adjacent areas. ? Should increase the communication between the supplier and marketing, procurement department. ? Should concentrate on implementation of technological advancement for getting competitive advantage. ? Should concentrate more on self- value added product, less depend upon the supplier.
? Should promote it’s brand like other competitors.
? More emphasis on after sales service will also promote the business.
doc_175016471.docx