LORAL

Because It Is Worth It

Group Members
Shivani sharma Anitha nadar Jay naik Kavita more

The History Of the company

In 1907, a young French chemist Eugne Schueller developed an innovative colour formula; In 1909, he registred his own company; In 1920, the small company employed 3 chemists; In 1912, Eugne Schueller started to export his products; In 1933, he created and launched Votre Beaut, a magazine devoted to women; In 1953, LOral 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 of beauty throughout the world
2000-present

First steps : the model takes shape

1909-1956

1984-2000 Becoming number one in the beauty industry

1957-1983 L'Oreal on the road to greatness

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 brands
BECAUSE YOU'RE WORTH IT

PRODUCT TARGET
LOreal 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 were 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 LOREAL

Other brands 59%

L'Oreal 41%
Hair colour 20% Skincare 6.5% Shampoo 4.6%

Competitors in Indian market

CHALLENGE

To keep the different brands in one basket and yet keeping the differentiation.
Good brand management was all about hitting the right target audience with the right product.

STRATEGY

Understandings

Company was brilliant in identifying the needs, cultures and aspirations of different kinds of customers in diversified regions.

When it First Entered the Market

Gender Segmentation combination of low price and
natural ingredients would fit Indias 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 Mens 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 LOreal 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:
LOreal 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

TARGETING

Middle aged and working women became the main 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 LOreals more luxurious and expensive products.. LOreal also target women that sought benefits from using its
products

no product that solved womens 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.

LOreals strategy targeted the more affluent that were more educated and had more disposable income to splurge on luxury items if they justified their price.

Brand Positioning

Company has a strong and long-term brand positioning specially within the minds of middle age women and teenage girls.

POSTITIONING
LOreal hired Ms World in an advertisement that beautiful women use LOreal, thus positioning itself as not just a basic shampoo, but one that made women beautiful. positioned LOreal higher in the market compared to the home brands which positioned themselves as cheap, value-for-money products which only served the most basic of functions of hair cleaning. LOreal 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 ,

 LOreal has historically carried a premium image and price tag Viral marketing is a term coined to define the productive ways a marketing message is made available. Customers, who have caught the virus, do the selling dual positioning strategy in India LOreal 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 LOreal 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.

 Opted complete makeover of the companies by providing wide range of products. Mass Marketing

Celibrities from different cultures are used for advertisements. Modernised Programs and events adds more effect to advertisements. approach of advertising

Awareness

Established education centers are in many countries. Conducted programs related to hairdressers.

Conclusion
The LOreal Group is the worlds largest cosmetics & beauty company. In our opinion, we think that LOreal has successfully created a brand identity as the adverts that present the products make them look more expensive.