LOreal Brand: Founded in 1909; LOreal as a brand focuses primarily on

Science of beauty in a jar which spends relatively higher on R &D compared to

its competitors.
The company wants to expand its presence in the emerging markets and
increase its market share from 30% to 50% by 2020 and if LOreal as a brand
aims for such a growth the brand will have compromise on its exclusivity,
LOreal Product range:
The entire portfolio of brands of L'oreal has in it majorly high end brands which
do not cater to all the segments of India except for the Crem-de-la-Crem class.
The Body Shop, Vichy are middle category who have acquired a loyal customer
share over a period of time. Matrix & Kerastase cover a range of hair products.
Garnier and Maybelline are the only brands in the entire portfolio of L'oreal's
brands that targets the lower segment of consumers which is mostly a major
part. Garnier could not capture market share considering the poor product mix.
Most of their products are not marketed enough to capture the target customers,
so they are unaware of the options available to them. The Maybelline brand is an
affordable range of Make Up. Considering India, it is consumed mostly in metro
and tier 2 cities. A range of basic make up in the affordable range for tier 3 cities
should be developed to increase their market share.
Corporate Strategy:
STP
SEGMENTATION
Geographic: Loreal has adapted itself into various multi cultural markets like
African region, china, France, Brazil etc by creating Geocosmetics to study
beauty trends around the world.
Demographic: LOreal has diversified its products for both genders and all age
groups like Feria, Casting ColorSpa ,Garnier Men for Men and LOreal
Paris ,Maybelline, Redken for women.
Psycho-graphic: LOreal launched products for wide range of consumers
depending on their personality, needs, habits, desires and all economic classes
like Masstige, Lancme, Garnier.
Brand diversity: LOreal has a huge brand and product diversity, which includes
hair care, hair color, skin care, fragrances, and color cosmetics for Professionals,
Mass Retail and Luxury.
TARGETING
LOreal, with a portfolio of international brands, targets its market across the
globe, catering to diverse populations on different continents like Miami Chill.
POSITIONING
LOreal has positioned its product very strategically, so that none of the product
competes with each other in cannibalizing its market share. It glorifies its fame
by association across the globe with subtle and classy references.

Marketing Strategy: 1)LOreal has specific designated channels for each for its
brands (low-end,mid-and high-ends) 2)The focus has been on improving the
product through continuous R&D and innovation without hampering with the
existing positioning of the brands.3)To identify and capitalise on new trends and
understand coustomers at local level geocosmetics was created,which catered
specific needs and habits of local consumer 4) Introduction of LOreal Feria and
Casting ColorSpa for men was a major step for achieving
diversification.5)Increasing Ad spending in China from exhibit is clearly aligned
with its aimbition of doubling the customer base to two billion .6)With the
changing landscape of media usage ,LOreal has kept increased its presence on
Facebook by creating pages for salons and launched youtube channel
Destination Beauty.7)LOreal has posed itself as a source of confidence and
strength rather than just a cosmetic and beauty brand. 8) The current line-up of
products in the LOreal catalogue (like Garnier, Maybelline, Redken etc) is doing
well and market penetration can be achieved by either one of the following ways(i) Price decrease; (ii) Increase in promotion and distribution support; (iii) Modest
product refinements. 9) Market development for existing products can also be
achieved by trying to expand into new geographies or countries, targeting
different customer segments or by selling goods to industrial/salon buyers
originally meant for households. 10) Product development should continue and
LOreal must not in any way, reduce its investment in the R&D department. New
products and offerings are the lifeline of the brand. 11) At last, LOreal must also
try to enter new markets with completely new offerings apart from the existing
brands so as to create a more personalised product line-up in that geographical
area.
Brands:
USP:
Recommendation:
1) Loreal low-mid level brand Garnier is still unable to penetrate deep into
emerging markets, the company still felt that the retail outlets of towns
and villages will be a devaluation for the brand and decided to sell rather
via kiosks this clearly shows that there is a gap in their offering and
company needs to explore an alternative product range for the emerging
markets.
2) The Branding efforts-sponsoring Cannes film festival and brand
ambassadors-Sonam kapoor and Aishwarya Rai are aligned with the elite
product offerings from the company, if it needs to penetrate in the
emerging market it will need to choose brand ambassadors and sponsor
events with which the masses can associate better.