L’ORÉAL

“ Because It Is Worth It”

 Group Members

•Shivani Sharma - 38 •Jay Naik - 24

•Anitha Nadar - 21 •Kavita More - 19
 The History Of the company…

• In 1907, a young French chemist Eugéne

Schueller developed an innovative colour
formula;
• In 1909, he registred his own company;
• In 1920, the small company employed 3
chemists;
• In 1912, Eugéne Schueller started to
export his products;
• In 1933, he created and launched Votre
Beauté, a magazine devoted to women;
• In 1953, L„Oréal won an advertising
Oscar.
 About the industry
 The cosmetic industry is a profitable business for most of the manufacturers
of cosmetic products.

 The cosmetic industry world wide seems to be continuously developing,

many famous companies sell their cosmetic products online also in
countries in which they do not have representatives.
 HISTORY
• The diversity • First steps :
of beauty the model
throughout takes shape
the world

2000-present 1909-1956

1984-2000 1957-1983

• Becoming • L'Oreal on
number one the road to
in the beauty greatness
industry
 Operation
• L'Oreal is the world largest cosmetics and beauty
company. They have over 500 products.
• This brand concentrates on:
• Hair color
• Skin care
• Sun protection
• Make up
• Perfumes
• Hair care
Our brand’s
BECAUSE YOU'RE WORTH IT
 PRODUCT TARGET
• L‟Oreal is mainly used for the younger people
like teenagers as most of their products involves
make up which most teenagers like.
• L'Oreal also targets their products to older
women.
• Their slogan “because we‟re worth it” shows
that the product is a luxury product which
suggests it is could be expensive.
• L'Oreal's product, reached the top 100 brands of
The Brand Trust Report published by Trust
Research Advisory in India
 MARKET SHARE OF L’OREAL

Other
L'Oreal
brand’s 41%
Hair colour
59% 20%
Skincare
6.5%
Shampoo
4.6%
Competitors in Indian
market
 • To keep the different brands
CHALLENGE in one basket and yet
keeping the differentiation.

• Good brand management

was all about hitting the right
STRATEGY target audience with the right
product.

• Company was brilliant in identifying the needs, cultures

and aspirations of different kinds of customers in
Understandings diversified regions.
When it First Entered the Market
• Gender Segmentation
• “combination of low price and
natural ingredients would fit
India‟s market,
 women use plants and herbs as
part of their beauty culture”.
 specifically catered to the women
of India,
 how it should carve a niche market
for itself in the Men‟s sector as
well.
• Income Segmentation: 2 main segments:

 the poorer masses and the rest

• marketed its product
• low in cost to attract the poorer masses, and her efforts in
reducing ingredients to cut price reveals her aim to minimize
costs as much as possible.

 NOT YET TARGETING middle class or

upper class
• did not make any distinct segmentation of the richer classes
The “L‟Oreal Makeover”
• Income Segmentation:
• the quickly rising middle class which was gaining in affluence.
• fastest growing income class that represented a highly untapped market
potential due to their radically different mindsets from the masses.

• Age Segmentation:
• the younger middle class from the more conservative, often older
Indians,
• showed an increased interest in capturing the market share of the
younger Indians.
• Psychographic Segmentation:

• L‟Oreal segmented India into different groups based on their

thinking and behavior from the older
• more conservative Indians who held conservative values of
thriftiness more strongly and stubbornly,
• the younger more impressionable generation who had
developed a very different and westernized view on spending
and culture
 • Middle aged and working women became the main
TARGETING target of the company.

 young affluent middle class females, especially those with graying

hair
• maximum profits as it not only possessed the purchasing
power that masses lacked, but more critically a modernized
mentality
• these people more receptive to purchasing L‟Oreals‟ more
luxurious and expensive products..
 L‟Oreal also target women that sought benefits from using its
products
• no product that solved women‟s hair greying problems
 YOUNG MIDDLE CLASS
• who did not mind using products that damaged their
hair as long as they were cheap due to monetary
problems,
• these women were more educated and concerned for
the need to have healthy beautiful hair, as well as
more equipped with the purchasing power to do so
 LOWER INCOME MASSES
• introduced new products like „Colour Naturals‟
which be used multiple times and cost only $3.10,
translating into increased value for the masses.

• L‟Oreal‟s strategy targeted the more affluent that

were more educated and had more disposable income
to splurge on luxury items if they justified their price.
 • Company has a strong and long-term brand positioning specially
Brand within the minds of middle age women and teenage girls.
Positioning
 POSTITIONING
 L‟Oreal hired Ms World in an
advertisement

• L‟Oreal India launched the program

“Beautiful Beginnings” on 7th July
2009, an initiative which aimed to
train at least 200 unprivileged school
drop-out girls every year to make them
employable. It was even inaugurated
by Bollywood actress Aishwarya Rai ,
 L‟Oreal has historically carried a premium image and price
tag
 Viral marketing

 dual positioning strategy in India

• L‟Oreal reduced its hair care range prices by 25% in

2010 after it began local production and resorted to another
4% price cut this year
DIFFERENTIATION
 Home brands aimed to garner loyalty of existing users
• repeated use by generations of Indians would bring about feelings of
trust and dependability
• attracted thrifty housewives who wanted the cheapest products

 DIFFERENTITATED : by promising better quality products to the

rising middle class
• When L‟Oreal first entered India :beauty education was absent,
training seemed redundant and hairdressers were well satisfied with
cheap local domestic brands
• invested heavily in education and training to boost their status in the
community.
Conclusion
• The L‟Oreal Group is the world‟s largest cosmetics &
beauty company. In our opinion, we think that L‟Oreal has
successfully created a brand identity as the adverts that
present the products make them look more expensive.