Description
PROJECT ON LOREAL BUSINESS STRATEGY
NEED/ WANT/ DEMAND
Need: It is state of deprivation of some basic satisfaction. e.g. - cosmetic product Want: Desire for specific satisfier of need. e.g. - Indians - wants clear skin Americans - wants healthy hair Demand: Want for a specific product backed up by ability and willingness to buy. e.g. - Need – cosmetic product Want – hair shampoo+conditioner ……but able to get only shampoo Therefore, demand is for shampoo
MARKETING MANAGMENT
Marketers cannot create needs. Needs preexists. Marketers can influence wants. This is done in combination with societal influencers. Demand influenced by making productAPPROPRIAT ATTRACTIVE APPROACHABLE/AFFORDABLE AVAILABLE EASILY To target consumers (4 P’s) – Product/ Promotion/ Price/ Place
PRODUCTS- GOODS/ SERVICES/ PLACE
Product is anything that can satisfy need/ want. Product component1. Physical Good. E.g. Face cream, shampoo, hair oil etc Physical Good – cosmetic material Along with products loreal also have their saloons/parlour Hence, in marketing, focus is on providing/ satisfying service rather than providing only products.
VALUE/ COST/ SATISFACTION
Decision for purchase made based on value/ cost satisfaction delivered by product/ offering. Product fulfills/ satisfies Need/ Want. Value is products capacity to satisfy needs/ wants as per consumer’s perception or estimation. Each product would have a cost/ price elements attached to it.
2
MARKETING MANAGMENT
Need – beauty Method/ Products- Satisfaction – Estimated by the result or its effect VALUE- Products capacity to satisfy. COST- Price of each product.
EXCHANGE/ TRANSACTION
To satisfy need/ want, people may obtain the product through - Self Production - By force or coercion - Begging - Exchange EXCHANGE: – The act/ process of obtaining a desired product from someone by offering something in return. For exchange potential to exist, the following conditions must be fulfilled. TRANSACTION: – Event that happens at the end of an exchange. Exchange is a process towards an agreement. When agreement is reached, we say a transaction has taken place. Proof of transaction is BILL/ INVOICE. Monetary Transaction- money is paid for the product
3
MARKETING MANAGMENT
L'OREAL - BUSINESS POLICY AND STRATEGY
27 GLOBAL BRANDS 130 COUNTRIES 68 900 EMPLOYEES 613 PATENTS FILED IN 2011.
INTRODUCTION
L’Oreal group, founded in 1909, by Eugène Schueller, a young French chemist today is the world's largest cosmetics and Beauty Company. Headquartered in Paris, 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.
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. (L’Oréal Group 2007)
VALUES
4
MARKETING MANAGMENT
Striving For Excellence: L’Oréal is trying to enchant the brand portfolio with continuously innovating products while meeting all standards set for quality and safety. Passion for adventure: their expertise drives their passion for new discoveries and innovation in cosmetics. Enrichment through diversity: understanding and valuing each individual is an essential part of their corporate culture. Their staff members come from many different backgrounds and work together to offer a full range of products through varied distribution channels. Valuing individual talent: they are dedicated to enhancing the wellbeing of their consumers; they also ensure that each employee has the opportunity to develop his or her potential through personal and professional growth. Leading innovation in beauty: research, sensitivity to consumer needs, know-how and expertise are as essential as intuition. Building on their unrivalled experience and expertise, fundamental research is a specific focus of investment that drives creativity and contributes to developing the cosmetics of tomorrow. Vision: “A company that is highly successful economically. A company where people are enthusiastic about going to work. A company that respects the environment and acts...
DISTRIBUTION
? ITALY, AUSTRIA and HOLLAND ? Later US, RUSSIA and FAR EAST ? Now present worldwide
5
MARKETING MANAGMENT
? Found in all major drug stores, supermarkets, beauty salons and even direct mails ? Since 2009, the company has more than doubled distribution reach - from 250,000 outlets to 600,000
PROMOTIONAL STRATEGY
? ? ? ? ? ? ? ? Promotional posters Launch of beauty magazines for women Votre Beaute Clean children campaign Creation of jingles be nice & clean, smell good for dop shampoo Advertising through film commercials Selecting local brand ambassadors Open spa to promote brand Advertising campaign because I am worth it
POSITIONING STRATEGIES
? ? ? ? ? Most Innovative High quality Advanced products Affordable price Only cosmetic brand in the world that has products in all segments consumer, luxury, professional and pharmacuetical
DISTRIBUTION STRATEGY
? Through agents and consignments to US, SouthAmerica, Russia, Far-East
CONCENTRIC DIVERSIFICATION
6
MARKETING MANAGMENT
? Hair color ? Styling aids, cleansers, fragrances, body and skin cosmetics etc.
HORIZONTAL INTEGRATION
? Acquisition of Maybelline, red ken, Ralph Lauren, Soft Sheen ? Carson
MARKET DEVELOPMENT STRATEGY
? Develop strategies for Maybelline lipstick in Japan
RELAUNCHING BRANDS
? Relaunched Helena and Rubinstein skin care and cosmetic brands
HITTING THE RIGHT AUDIENCE WITH RIGHT PRODUCT
CONGLOMERATE DIVERSIFICATION AND JOINT VENTURE STRATEGY
? L'Oreal joint venture with Nestle.
INDIAN BRAND AMBASSADORS
7
MARKETING MANAGMENT
AISHWARYA RAI BACHCHAN
SOONAM KAPOOR
GRAPHS DESCRIBING THEIR STRATEGY
GEOGRAPHIC ZONE %
geographic zone 40 30 20 10 0 Asia, Pacific Western Europe North America
31 24 20 13 9
Latin America
Eastern Europe
? Geographical distribution of products/ demand for products
8
MARKETING MANAGMENT
PRODUCT CATEGORY %
product category 31 25 17 14 12 1
35 30 25 20 15 10 5 0
? Concentration on different product category
DIVISION %
division
60 50 40 30 20 10 0
52.1
25.5 14.9 7.2 Consumer Products Luxury Products
Professional Products
Active Cosmetics
? Products distributed in different status
9
MARKETING MANAGMENT
BUSINESS SEGMENT %
Sales 27.9 21.5 21.3 14.6 9.8 4.9
30 25 20 15 10 5 0
10
MARKETING MANAGMENT
LOREAL COMPARISON WITH ORIFLAME
OPERATING PROFITS
OPERATING PROFITS
4,000.00 3,000.00 2,000.00 1,000.00 0.00 2010 2010 1,002.50 3,293 2011 2011 1,014.80 3,057.00 loreal oriflame
oriflame loreal
SALES MILLION €
25,000.00 20,000.00 15,000.00 10,000.00 5,000.00 0.00 2010 2010 1,513.60 19,496 2011
SALES
loreal oriflame
oriflame loreal
2011 1,493.80 20,343.00
11
MARKETING MANAGMENT
CONCLUSION
? L’ORÉAL is the world market leader in cosmetics ? innovative and invest a lot of money in research and development ? Products are positioned in the high-priced segment because of their quality ? They offer well coordinated products for different target groups ? To keep their strength alive they have to observe their competitors like PnG and UNILEVER
-Thank you
12
doc_516598903.docx
PROJECT ON LOREAL BUSINESS STRATEGY
NEED/ WANT/ DEMAND
Need: It is state of deprivation of some basic satisfaction. e.g. - cosmetic product Want: Desire for specific satisfier of need. e.g. - Indians - wants clear skin Americans - wants healthy hair Demand: Want for a specific product backed up by ability and willingness to buy. e.g. - Need – cosmetic product Want – hair shampoo+conditioner ……but able to get only shampoo Therefore, demand is for shampoo
MARKETING MANAGMENT
Marketers cannot create needs. Needs preexists. Marketers can influence wants. This is done in combination with societal influencers. Demand influenced by making productAPPROPRIAT ATTRACTIVE APPROACHABLE/AFFORDABLE AVAILABLE EASILY To target consumers (4 P’s) – Product/ Promotion/ Price/ Place
PRODUCTS- GOODS/ SERVICES/ PLACE
Product is anything that can satisfy need/ want. Product component1. Physical Good. E.g. Face cream, shampoo, hair oil etc Physical Good – cosmetic material Along with products loreal also have their saloons/parlour Hence, in marketing, focus is on providing/ satisfying service rather than providing only products.
VALUE/ COST/ SATISFACTION
Decision for purchase made based on value/ cost satisfaction delivered by product/ offering. Product fulfills/ satisfies Need/ Want. Value is products capacity to satisfy needs/ wants as per consumer’s perception or estimation. Each product would have a cost/ price elements attached to it.
2
MARKETING MANAGMENT
Need – beauty Method/ Products- Satisfaction – Estimated by the result or its effect VALUE- Products capacity to satisfy. COST- Price of each product.
EXCHANGE/ TRANSACTION
To satisfy need/ want, people may obtain the product through - Self Production - By force or coercion - Begging - Exchange EXCHANGE: – The act/ process of obtaining a desired product from someone by offering something in return. For exchange potential to exist, the following conditions must be fulfilled. TRANSACTION: – Event that happens at the end of an exchange. Exchange is a process towards an agreement. When agreement is reached, we say a transaction has taken place. Proof of transaction is BILL/ INVOICE. Monetary Transaction- money is paid for the product
3
MARKETING MANAGMENT
L'OREAL - BUSINESS POLICY AND STRATEGY
27 GLOBAL BRANDS 130 COUNTRIES 68 900 EMPLOYEES 613 PATENTS FILED IN 2011.
INTRODUCTION
L’Oreal group, founded in 1909, by Eugène Schueller, a young French chemist today is the world's largest cosmetics and Beauty Company. Headquartered in Paris, 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.
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. (L’Oréal Group 2007)
VALUES
4
MARKETING MANAGMENT
Striving For Excellence: L’Oréal is trying to enchant the brand portfolio with continuously innovating products while meeting all standards set for quality and safety. Passion for adventure: their expertise drives their passion for new discoveries and innovation in cosmetics. Enrichment through diversity: understanding and valuing each individual is an essential part of their corporate culture. Their staff members come from many different backgrounds and work together to offer a full range of products through varied distribution channels. Valuing individual talent: they are dedicated to enhancing the wellbeing of their consumers; they also ensure that each employee has the opportunity to develop his or her potential through personal and professional growth. Leading innovation in beauty: research, sensitivity to consumer needs, know-how and expertise are as essential as intuition. Building on their unrivalled experience and expertise, fundamental research is a specific focus of investment that drives creativity and contributes to developing the cosmetics of tomorrow. Vision: “A company that is highly successful economically. A company where people are enthusiastic about going to work. A company that respects the environment and acts...
DISTRIBUTION
? ITALY, AUSTRIA and HOLLAND ? Later US, RUSSIA and FAR EAST ? Now present worldwide
5
MARKETING MANAGMENT
? Found in all major drug stores, supermarkets, beauty salons and even direct mails ? Since 2009, the company has more than doubled distribution reach - from 250,000 outlets to 600,000
PROMOTIONAL STRATEGY
? ? ? ? ? ? ? ? Promotional posters Launch of beauty magazines for women Votre Beaute Clean children campaign Creation of jingles be nice & clean, smell good for dop shampoo Advertising through film commercials Selecting local brand ambassadors Open spa to promote brand Advertising campaign because I am worth it
POSITIONING STRATEGIES
? ? ? ? ? Most Innovative High quality Advanced products Affordable price Only cosmetic brand in the world that has products in all segments consumer, luxury, professional and pharmacuetical
DISTRIBUTION STRATEGY
? Through agents and consignments to US, SouthAmerica, Russia, Far-East
CONCENTRIC DIVERSIFICATION
6
MARKETING MANAGMENT
? Hair color ? Styling aids, cleansers, fragrances, body and skin cosmetics etc.
HORIZONTAL INTEGRATION
? Acquisition of Maybelline, red ken, Ralph Lauren, Soft Sheen ? Carson
MARKET DEVELOPMENT STRATEGY
? Develop strategies for Maybelline lipstick in Japan
RELAUNCHING BRANDS
? Relaunched Helena and Rubinstein skin care and cosmetic brands
HITTING THE RIGHT AUDIENCE WITH RIGHT PRODUCT
CONGLOMERATE DIVERSIFICATION AND JOINT VENTURE STRATEGY
? L'Oreal joint venture with Nestle.
INDIAN BRAND AMBASSADORS
7
MARKETING MANAGMENT
AISHWARYA RAI BACHCHAN
SOONAM KAPOOR
GRAPHS DESCRIBING THEIR STRATEGY
GEOGRAPHIC ZONE %
geographic zone 40 30 20 10 0 Asia, Pacific Western Europe North America
31 24 20 13 9
Latin America
Eastern Europe
? Geographical distribution of products/ demand for products
8
MARKETING MANAGMENT
PRODUCT CATEGORY %
product category 31 25 17 14 12 1
35 30 25 20 15 10 5 0
? Concentration on different product category
DIVISION %
division
60 50 40 30 20 10 0
52.1
25.5 14.9 7.2 Consumer Products Luxury Products
Professional Products
Active Cosmetics
? Products distributed in different status
9
MARKETING MANAGMENT
BUSINESS SEGMENT %
Sales 27.9 21.5 21.3 14.6 9.8 4.9
30 25 20 15 10 5 0
10
MARKETING MANAGMENT
LOREAL COMPARISON WITH ORIFLAME
OPERATING PROFITS
OPERATING PROFITS
4,000.00 3,000.00 2,000.00 1,000.00 0.00 2010 2010 1,002.50 3,293 2011 2011 1,014.80 3,057.00 loreal oriflame
oriflame loreal
SALES MILLION €
25,000.00 20,000.00 15,000.00 10,000.00 5,000.00 0.00 2010 2010 1,513.60 19,496 2011
SALES
loreal oriflame
oriflame loreal
2011 1,493.80 20,343.00
11
MARKETING MANAGMENT
CONCLUSION
? L’ORÉAL is the world market leader in cosmetics ? innovative and invest a lot of money in research and development ? Products are positioned in the high-priced segment because of their quality ? They offer well coordinated products for different target groups ? To keep their strength alive they have to observe their competitors like PnG and UNILEVER
-Thank you
12
doc_516598903.docx