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ACKNOWLEDGEMENT

We express our sincere gratitude to our faculty Prof. Gagan Katiyar for his constant support,
for sharing his expertise, for sincere and valuable guidance as well as the encouragement
extended to us. His insightful comments in comprehensive classroom sessions helped us
improve our project report from various perspectives. We are also thankful to our friends
and classmates who contributed to our report through their useful and valuable insights.

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 INDEX

S.NO. TOPIC PAGE NO.

1 L’oreal Paris 4
2 Segmentation, Targeting and Positioning 4-5
3 SWOT Analysis 6-8
4 The Brand 8-10
5 Brand Positioning 10
6 Integrated Marketing Communication 11-13
7 Brand Touch Points 13-14
8 Competitor Analysis 14
9 Survey and Analysis 15-17
10 Conclusion 18
11 References 19

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 L’OREAL PARIS

L'Oréal S.A. was established by Eugène Paul Louis Schueller. It was founded in 1909, is
headquartered in Paris, and is located in Clichy, Hauts de Seine. The company established its
first branch office in 1909. The group is the first of its kind in the globe. L'Oréal began as a
hair colour business but has now diversified into products for cleaning, hair care, skin care,
sun protection, cleaning, and perfumes, as well as dermatological, toxicological, and tissue
engineering products and biopharmaceutical research. L'Oréal has 42 production facilities,
six R&D facilities, and over 40 affiliate companies spread throughout more than 130 countries
on five continents.

L’OREAL PARIS- SEGMENTATION, TARGETING AND POSITIONING

• Segmentation and Targeting:

The practise of segmenting a market involves breaking it into distinct groups with
varied needs, characteristics, and behaviours that may be targeted by various
marketing strategies. L'Oréal clearly categorises its clients into different groups. To
start, L'Oréal offers a complex product made up of 32 complementary brands
dispersed throughout 5 divisions and 5 product lines in order to appeal to people of
various genders (women and men), ages (young and old), and ethnicities (diversity). In
this way, a large number of people will be able to find a cosmetic item that suits their
demands. The Group appeals to a number of social groups by offering items for both
the middle and higher classes in terms of psychographic segmentation (the consumer
product division products). Additionally, L'Oréal appeals to a wide variety of
personalities and lifestyles, including fans of natural cosmetics and duty-free shopping.
The capacity to reflect on oneself in the cosmetics may encourage customers to make
more purchases. L'Oréal splits its clientele into categories for the purposes of

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 behavioural segmentation based on the benefits they anticipate from their products.
This may include people looking for skincare goods including cleansers, moisturisers,
anti-imperfections, and anti-aging. Overall, the fact that L'Oréal's customer target
group combines segmentations based on demographic, psychographic, and
behavioural data may be responsible for the use of multiple customer segmentation
bases.
• Positioning:
Positioning is the primary aspect of the product that the target market considers. The
positioning statements for each brand show how L'Oréal's diverse brand portfolio
needs a particular positioning for each of the Group's brands. For instance, two L'Oréal
brands, Garnier and Maybelline New York, are in direct competition in the same
market for cosmetics. Garnier is well-known for its use of natural ingredients and
reliable scientific research, whereas Maybelline New York is renowned for its
innovation, glitz, and New York energy attitude. Due to the diversity of market
segments, L'Oréal relies on a differentiation strategy by making a significant distinction
between its products. Due to the diversity of market segments, L'Oréal relies on a
differentiation strategy by making a significant distinction between its products.
Customers view the L'Oréal Group as the industry leader in cosmetics as a result of its
extensive brand portfolio of premium, empathetic, and successful goods. For instance,
Lancôme products stand out for their elegance, sophistication, and complementing
skin care. Furthermore, positioning needs to be distinct and clear in order to forge a
strong connection with customers, and repetition is necessary for it to stick in their
minds, which was not the case for Garnier and Revlon, which failed in China due to
poor positioning, according to de Vries, van Helsingin, and Borchert. They also imply
that other L'Oréal brands looked for a niche market to distinguish themselves from the
mass-produced brands.

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 L’OREAL- SWOT ANALYSIS

• Strengths:
The distinctive qualities of a firm are its strengths, which provide it a competitive edge
in terms of market share, consumer appeal, and profitability. L'Oréal has the following
strengths:
o L'Oreal isn't just a low-cost cosmetics company; they've expanded into the
luxury market and offer high-end items for people with better incomes.
Alternatively, L'Oreal could be able to help a customer find it if they desire a little
bit of both worlds.
o The brands in L'Oreal's portfolio come from all around the world. Over 120
nations sell L'Oreal products. They produce and distribute goods in massive
quantities, which is less expensive than buying them in smaller quantities
separately.
o Customers want healthy skin and thick hair. This means fewer chemicals and
potentially dangerous ingredients in many people's skincare and haircare
products. For businesses, natural ingredients are more expensive, but L'oreal
didn't think twice.
o L'oreal relies substantially on research and development because it offers so
many products in many sectors of the cosmetics and beauty market. Customers
choose products that are both useful and healthy for their health. Part of this is
understanding how to incorporate sun protection into skincare and makeup.
• Weaknesses:
Weaknesses of a firm or brand must be strengthened. So, let's go over some of
L'Oréal's major weaknesses:
o L'Oreal is no different from other huge operations in that there are always
problems and difficulties. Because of its numerous subsidiaries, the company is

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 perceived as being slow and complicated. L'oreal employs more than 60,000
people, making managing its workforce a problem. Human capital expenses are
high as a result.
o Due to the fierce rivalry in the hair care industry from HUL and P&G, Garnier has
always been a strong brand. In the haircare sector, Sunsilk is HUL and P&G
stands head and shoulders above the competition.
o L'oreal's profit margins are a little lower than those of its rivals because of
increased R&D investments, organic processes, and significant distribution
costs. Take this issue with a grain of salt though, as R&D has also assisted L'Oreal
in becoming one of the top companies in the cosmetics industry.
• Opportunities:
Opportunities are areas where a business can concentrate on enhancing performance,
sales, and ultimately profit. Let’s look at the odds that L’oreal has good results:
o The market for personal and cosmetic care products will only expand. The world
is an oyster, and developed economies spread out and prosper in new regions.
L'Oreal will make more money by exploring these new markets than by sticking
to the old oversaturated ones.
o The expansion of the product mix as a whole will be brought about by the growth
of product lines and the inclusion of new products. The management of L'oreal
will also want to achieve this.
o Organic beauty products are growing in popularity. For L'oreal staff who have
been involved in organic R&D since the beginning of the company, this demand
is encouraging.
• Threats:
Threats to the environment could prevent an expansion of a company. There are a few
threats from L’Oréal:

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 o While other countries are experiencing significant economic turmoil, there is
greater competition in the cosmetics industry.
o Even if the L'Oreal Group may provide the best items in its line, customers may
believe that their products don't meet their fundamental needs, causing them
to stop buying L'Oreal products.

L’OREAL- THE BRAND

• Brand Name and Symbol:

L'Oréal Group, which introduces various
distinctive brand names, each with its own
brand features, and hence multigrading as
well as a strong corporate brand can be
recognised, was named 28th by Forbes as the
world's most valuable brand. Strong brand
equity, which is described as a set of
relationships and consumer behaviour that
ensures better sales than if the brand name
were not there, is assumed to exist among highly valued brands. L'Oréal uses its brand
attributes to increase brand equity. A good example is the corporate brand name
L'Oréal, which consistently uses the black logo, which is psychologically linked to
exclusivity and glamour. Furthermore, because to the global motto "because you're
worth it," people all over the world may be familiar with the brand. The positioning of
the brand across the globe is strengthened by this. For L'Oréal's customers, it actually
stands for a commitment, praise, and a close connection. To be clear, the phrase
exhorts customers to appreciate their appearance and purchase cosmetics.

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 • Product or Service Experience at Contact Points:
The personality of the brand may influence customers to buy or rebuy products.
However, as other experts have noted, an experience is a part of a brand's personality
and may be the most crucial element of a business's marketing strategy. Because of
this, the environment and personnel at the point of sale affect the entire consumer
experience and decision-making. Given that several of L'Oréal's brands compete in the
same stores, pharmacies, or hair salons, it could be challenging for the corporation to
create and maintain a uniform palette of colours, scents, noises, layouts, and human
traits throughout all of their brands' points of sale.
• Brand Concept Tangible and Intangible Values:
A non-tangible brand idea that manifests in tangibles, such as keeping a promise, also
strengthens L'Oréal's brand. The strong brand position may be helpful in terms of
brand extension. Brand expansion is the use of a popular brand name to enter a new
market or distribution channel. The Body Shop brand, for instance, may increase,
claims the author. To illustrate, L'Oréal might provide a clothing line that includes
house wear, towels, and bathrobes made entirely of organic cotton. This line might be
targeted at the same consumer demographic. Kotler and Armstrong claim that this
would aim to boost profits and beat rivals; however, L'Oréal would need to guarantee
differentiation to prevent clients from getting perplexed. As a result, brand recognition
and customers seem to be the greatest rewards for companies with powerful brands.
Customers talk about the brand when they see the visual expressions and pick it over
the brands of the competitors as a result. Granted, the clients generate income.
• Creating Value for Customers:
The study found that the L'Oréal brand offers customers values because of its potent
brand structure. This enables the business to understand how the cosmetics affect
consumer purchasing habits. The brand might reduce the sense of risk. Customers of
L'Oréal acquire confidence in the company through this. Buyers are aware of exactly

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 what they are purchasing since they are confident in the security and safety of the
products. Similar to this, L'Oréal causes its customers to feel excitement, pleasure,
appreciation, and stimulation, which could ultimately result in exceptional products.
The brand also offers customers multiple identities depending on the target market.

L’OREAL- BRAND POSITIONING

Despite the fact that women make up the bulk of Loreal's clientele, they are beginning to
focus more on men. Given that it is a high-end brand, wealthy people are likely their target
market. By choosing this brand, they might give their appearance a dash of elegance and
class. Customers have successfully helped L'Oreal establish a positive and distinctive brand
image, which improves its positioning. Customers think highly of L'Oreal as a company.

L’oreal's tagline is- "BECAUSE I'M WORTH IT"

There is little doubt that a woman wrote this unique slogan because of its uniqueness. I am
worth using his things since I deserve the best. Because of this, Loreal asserts its superiority
while also promising the best possible product quality. Customers feel trusted and clearly
valued when they hear this sentence.

Numerous celebrities appear in L'Oreal's new Collection Exclusive Pure Reds advertising
campaign. Women from many different countries took part in this project. By using this
sophisticated brand, clients may get a celebrity-like look, which fosters customer confidence
and strengthens the company's position. Additionally, Loreal markets itself based on the
virtues, principles, and ideals of its products.

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 INTEGRATED MARKETING COMMUNICATION

It is safe to assume that in the instance of L'Oréal, customers are primarily aware of the
presence of the product but are uninformed of anything else. To increase the product's
awareness in this situation, L'Oreal will need to spend a lot of money on promotion. The
establishment of a relationship will then occur as a result of customers becoming aware of
its advantages, such as composition and cost, and expressing an initial interest. In the
subsequent stage, consumers favour the product above other commodities. In-store product
testing, which helps convince customers of the product's worth over rival products, may help
with this. Finally, the customer is persuaded to buy the cosmetics through discounts, in-store
advice from employees, or maybe the product's availability.

L'Oréal informs customers about the product as a consequence, including how to use the
cosmetics to get the desired appearance and how to apply the product. L'Oréal makes its
content responsive to many platforms. They are able to connect with customers throughout
the process because to this. However, if a business wants to keep its customers, it must
ensure that the product offers benefits and that the customer is persuaded by the product's
qualities rather than just by the advertising, especially if the promotion lacks support, as it
did in the case of the anti-age creams mentioned earlier. It makes sense to assume that sales
will suffer if there are unclear or conflicting signals throughout the process. L'Oréal may
pursue enhanced promotion in conformity with applicable laws in response to the criticism
in an effort to draw more customers and nudge them in the direction of the product.

• Advertising:
In TV and magazine advertising, which, along with TV, are the most promising media
for generating awareness, L'Oréal employs brand ambassadors and famous people.
However, critics of L'Oréal's advertising have criticised company for failing to provide
evidence for a number of its anti-aging products, and certain celebrity ad campaigns
have been dropped because of excessive airbrushing. It is therefore feasible to draw
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 the conclusion that the L'Oréal advertisement does not entirely adhere to FDA
guidelines and international advertising standards rules.

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 • Sales Promotion:
As promised, promotions, in-store information, and the option to test products before
they are sold in stores influence behaviour as well as the mind. However, since
L'Oréal's merchants offer freebies and discounts, it's feasible that they would draw
clients who frequently switch brands depending on offers, costing L'Oréal money.
• Public Relations (PR):
L'Oréal runs a range of public relations initiatives, including shareholder meetings,
major fashion shows, occasions like the Cannes Film Festival, and organising
competitions for hair stylists and makeup artists (The Argus, 2015).
• Sales Force:
Direct customer interaction between the in-store beauty professionals and customers,
according to L'Oréal employees, is unproductive. L'Oréal might be wasting money as a
result.
• Direct Marketing:
L'Oréal employs informational and private email news marketing. As a result, it might
not significantly advance its objective.

L’OREAL- BRAND TOUCH POINTS

• Ownership:
Possessing shampoos and other cosmetics from L'Oreal.
Observation-
o Having a friend or family member who uses L'Oreal products.
o Observing TV characters make use of L'Oreal goods.
o Knowing which celebrities use L'Oreal products.
• Word-of-mouth:
o Having a family member or acquaintance talk about or suggest the L'Oreal line
of products.

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 o Consumers reading about the L'oreal brand on YouTube or social media.
• Advertising and Communication:
o Being exposed to any L'Oreal advertising.
o Exposure to any L'Oreal product advertising displayed in stores.
o Looking at the L'Oréal website.
o Checking out any L'Oreal social media pages.
• Personal Selling:
Having a conversation with a salesperson about L'Oreal items in a company-owned or
independent store.

COMPETITOR ANALYSIS

The top rivals of L'Oréal are CHANEL, Unilever, Revlon, and others. Despite being massive
FMCG companies, they have been successful. Some marketing strategies were effective, such
as L'Oréal's use of well-known models and celebrities to advertise its products. Sonam Kapoor
and Aishwarya Rai Bachchan, both former Miss Worlds and now recently Anushka Sharma as
the brand ambassador, have been used to market goods in India. Their inclusion in several
advertising campaigns helped to build consumer trust, which was essential to their
commercial success. A sizable audience is drawn in by the fact that it is shown on multiple
television channels, fashion magazines, neon signs, and other locations.

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 SURVEY AND ANALYSIS

It is observed that most people are aware of L’oreal Paris and Sunsilk.

It is observed that most people prefer to purchase shampoo from the local retail stores in
comparison to the online mode or the brand’s website itself.

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L’oreal is very well active when it comes to in-store promotional material for Loreal
products as according to the survey conducted almost 59% of the audience has come across
the promotional material at the retail store.

It is observed that most people will recommend L’oreal to other people as the survey shows
a score of mostly 7-10.

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It can be observed that all the factors affect the purchase decision of a consumer be it price,
word of mouth, advertisements, offers and discounts or the celebrity endorsements, all of
these play a huge role in the case of L’oreal Shampoo.

Mostly people don’t follow the brand’s page on social media but the mostly
followed social media channel is Instagram.
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 CONCLUSION

The project report's objective is to critically analyse L'Oréal Paris's current marketing and
assess how it might help the company's goal of offering innovative beauty products to 1
billion new women and men, regardless of their ethnicity. The results indicate that
differentiated positioning and differentiation, higher publicity, and improved market
penetration may strengthen the brand's various consumer segmentation. In addition, L'Oréal
prioritises digital marketing through its official website, social media channels, email
campaigns, and mobile promotions despite the negative headlines. More mobile application
development might be advised, though. Although the Group's brands represent a variety of
branding values and components, they all work together to create a strong corporate brand
equity that might be further enhanced by the overall experience and brand extension. L'Oréal
may also think about enrolling customers in a special programme or registering through its
official website based on the analysis to improve current relationship marketing strategies.
However, the Group may need to remove some internal rules and incorporate CRM software
training to reap even greater benefits. A well-organized centralised relationship strategy
programme could also be recommended. Overall, it can be concluded from the research
done on L'Oréal's current marketing that many elements support the company's purpose,
still there is room for improvement in the near future in order to draw in more new
customers.

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 REFERENCES

✓ https://www.lorealparis.co.in/
✓ https://en.wikipedia.org/wiki/L%27Or%C3%A9al
✓ https://www.loreal.com/en/india/
✓ https://www.lorealparis.co.in/hair-care/shampoo
✓ https://www.indianretailer.com/news/l-oral-paris-ropes-in-anushka-sharma-as-
brand-ambassador.n14203/
✓ https://www.businessinsider.in/advertising/brands/article/from-youre-worth-it-to-
stand-up-how-loral-paris-communication-has-empowered-women-over-the-
years/articleshow/81395810.cms
✓ https://www.adsoftheworld.com/campaigns/this-is-an-ad-for-men-lipstick-mascara-
nail-polish

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