Group 1

PROMOTIONS & PRICING

Group Members
Vidya Praveen
Stuti Doshi
Yamini Mishra
Abhinav
Anjum zia
INTRODUCTION

L’Oreal has built a number of brands in the skin care, hair care and makeup products. They have also set
up salons to back its image. The brands we are concerned with are The Body Shop, Loreal and Garnier.
Each of them with a different strategy of promotions and pricing based on its target segment,
positioning and also cultural variations. All of these brands carry the international appeal of loreal due
to their promotional strategies. The promotional budget of Loreal for its global promotions is close to
that of Coca Cola.

PROMOTIONS

Advertising
Loreal spends heavily on its advertising. The advertising strategy of Loreal is distinct for all the three
brands.

The Body Shop –

Being a brand for the premier class, Body Shop does not advertise on National TV channels and
magazines. Its print ads appear in magazines like Femina, Cosmopolitan and Womensera.

Transformational appeal Aishvarya Rai, Diana hayden

Sales Promotion

Events & Experiences

Public Relations & Publicity

Loreal focuses on public relations through its CSR activities.

Corporate Social Responsibility

UNESCO and L’Oreal Professional Products signed an agreement under which they will
work together on an HIV/AIDS prevention education programme.
Another example of L’Oreal’s commitment to philanthropy and serving disadvantaged
communities is the Group's continued support over the past 15 years, to the Look Good
Feel Better programme. This initiative helps put a smile back on the faces of cancer
patients through skin care and make up workshops. LGFB is an original project from the
cosmetic industry, which demonstrates just how beneficial cosmetics can be to
individual’s well being.
This programme will offer courses adapted to the cultures of the countries concerned. It
will be part of the programme already put in place by L’Oreal in Africa, which has thus
far provided for 170,000 training days. The hairdressers serve to further the campaign by
9
relaying their knowledge to clients in their salons, veritable places of exchange and
dialogue across the continent.
After the mass scale destruction due to tsunami in India L’Oreal participated in the
international relief effort, L’Oreal contributed € 1 million.
L’Oreal realized the need of women in science and in 1998, the L’ORÉAL-UNESCO
FOR WOMEN IN SCIENCE Award was designed This collaboration, illustrates how the
private sector and an intergovernmental institution can pursue joint projects to support
women of science, encourage the advancement of knowledge and enhance development
on a global scale. Five remarkable women physicists receive the L’Oreal-UNESCO for
women in science award for 2005, the world year of physics.
Achievements
L’Oréal

Direct Marketing

Interactive Marketing
The Body shop has a

Word of Mouth Marketing

Personal Selling
Loreal sells in Retail outlets and local shops for its brands Garnier & Loreal. The Body Shop
sells only at exclusive outlets of its own. There is a series of products for Hair and skin care sold
at exclusive salons through personal selling. Therefore, it faces competition from personal selling
brands like Avon, Oriflame & Amway. Loreal has its magazine/catalogue circulated for personal
selling but it has not been used in India.

The Professional Products Division is at the service of hairdressers worldwide. Our

complementary brands meet the requirements of salon professionals in colorants, hair
care, texturing and styling formulas and provide salon customers with a wide range of
innovative, high-performance products. The Professional Products Division of L’Oréal is
made up of four different brands: L'Oréal Professionnel, Kérastase, Redken 5th Avenue
NYC and Matrix.
LIMITATIONS & SUGGESTIONS
Brand confusion
Positioning in a number of brands
Presence remains underdeveloped in emerging markets
Threats
Brand cannibalization
Local players
New channels of marketing
Information overload on the website