SWOT ANALYSIS

STRENGTHS:
Well established brand since 1946 A wide product line 26 brands sold in 130 countries over 22000 employees and revenues of $ 5 billion Markets more than 9000 quality products under its

portfolio of brands The company confirms to ISO 14001 standards very strong mission statement and strong ethics and integrity

WEAKNESSES: Fragrances part is not much contributing to the overall sales Problem in terms of leadership down the years Much centralization can pose problems In 2007 long term debt is the largest Much centralization can pose problems Only four product categories Cost of sales are increasing-inflation

OPPORTUNITIES: Using internet as a channel Entry to emerging markets New celebrities endorsed in new markets Purchasing power increasing Youth with a product need and demand for

that Demand for anti aging products

THREATS:
Management difficulty Products shifting to pharmacies Threat from price competitiveness from Wal-Mart Implementing the Distribution policy Increasing concerns about usage of aerosol and

fluorocarbons Restrictions on products carried in flight create uncertainty in travel retail business Tough competition From LoReal, P &G, Unilever, Avon, Colgate Palmolive and Alberto-Culver

STRATEGY EVALUATION
As the Markets are well known

The products demanded are identified

Thats why marketing strategy Bringing The Best To Everyone We Touch. Fashion loving customers are met with makeup

related categories. Skin care products marketed for customers that want natural, and allergen-free products.

STRATEGY EVALUATION Contd

Strategy also include R & D investments

Strategy includes their indirect involvement in

testing or experimentation Moreover La Mer and Darphin are targeted at their high-end market

CORPORATE STRATEGY
corporate strategy has been divided into four

parts :
1- Innovation 2- High- Touch products 3- improving Digital Capabilities 4- Building strong global brands

COMPETITIVE ANALYSIS
Competitors: LOreal Procter & Gamble Avon Products Unilever Alberto-Culver Colgate-Palmolive Revlon

Porters Five Forces Model

OPTIONS AVAILABLE
1. 2. 3. Introducing products as per demanded. Focus required for anti aging products The enhancement required in Hair care products 4. The resources management