Loreal Celebrity branding

Presented by Abhijit Chumki Neha Moumita Shalini

OBJECTIVES OF THE STUDY

To find out the impact of celebrity branding
on
customers purchase intention. To investigate the various factors contributing towards the brand building ,through the celebrity endorsement.

ABSTRACT

This paper aims at investigating the impact of celebrity endorsements with respect to their physical attractiveness, source credibility and congruence on customers brand perception and purchase intention. Celebrity endorsement seems to be the latest and majorly used technique by marketers these days. This paper tests the efficacy of this marketing tool. Data has been collected from 103 respondents in questionnaire form. 3

Industry : Personal care Founded : 1909 Founder(s) :Eugne Schuelle Headquarters :Clichy, , France Area served :Worldwide Products :Cosmetics and beauty products Revenue :19.50 billion (2010) Operating income:3.057 billion (2010) Profit :2.240 billion (2010) Total assets :24.04 billion (end 2010) Total equity :14.87 billion (end 2010) Employees : 66,620 (end 2010) Subsidiaries :The Body Shop 23 global brands across 130 countries

About L'Oreal

A century of expertise in cosmetics. L'Oral, the world leader in cosmetics, is synonymous with beauty, innovation and scientific excellence in more than 130 countries.
COMPETITORS

Revlon, Proctor & Gamble , HUL,Estee Lauder LOreal India is adopting a dual pricing strategy for the Indian market. The Group's research efforts, unique in the beauty industry, permit each brand to benefit from formulas specifically adapted to the needs of men and women worldwide, within each market or distribution circuit that is present. In 2010 LOreal spent 3.5 % of revenue on R&D (P&G spent 2.7%) - 20,3 billion consolidated sales in 2011 - In India, we employ over 1,000 people across six sites including: four regional offices, a factory in Chakan, Pune and our headquarters in Mumbai.

Sanofi Body Shop Aventis Investment 2% 10% Dermatology 4%

Chart Title

Hair care 28% Fragrance 11%

Makeup 19%

Skin care 26%

To help men and women around the world realize the beauty, and express their individual personalities to the full

L'Oreal began targeting men in 1999 when it introduced Loreal Feria for men

Same year L'Oreal acquired two ethnic haircare marketers in US.

In 2003-2004 acquired several brands in China

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L'Oral HISTORY
Founded in : 1909(registered) Founder : Eugene Schueller 1909-1956 1957-1983 1984-2000 2001-2011

First steps: The models takes Shape

L'Oral on the road to greatness

Becoming no.1 in the beauty industry

Diversity of beauty throughout the world

L'Oral OVERVIEW
Headquartered in the Paris suburb of Clichy, France Worldwide leader in cosmetics 27 Global brands 5 Key expertises 68900 Employees worldwide 203 billion sales in 2011 Products distributed in 130 countries 629 patents filed in 2011 18 research centers & 15 evaluation centers

LOreals Market Share Over the World

India among L' Oreal's top 5 global markets

L'Oral has identified India as one of its top-five growing businesses globally with 40% growth. L'Oral operates in India through its wholly owned subsidiary, L'Oreal India, and has four divisions -- consumer products, professional products, active cosmetics and luxury products. The share of the Indian market to L'Oral's turnover is around 15.8 billion Euros.

Celebrities and LOreal

Brand :L'Oreal Origin :UK Year:2006 Image type: Magazine Advert Featuring: Aishwarya Rai Category: Celebrities ,Cosmetics

Brand: L'Oreal Origin: UK Year:2009 Image type: Magazine Advert Featuring: Penelope Cruz Category: Celebrities, Cosmetics

BRANDS
CONSUMER PRODUCT LOral Paris Maybelline Garnier PROFESSIO NAL PRODUCT LOral professional Kerastase Matrix LUXURY PRODUCT Ralph lauren Biotherm Giorgo Armani Diesel

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WHO IS A CELEBRITY ??
Enjoy public recognition Experts of their respective fields Wider influence in public life & societal domain.

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CELEBRITY BRANDING
Celebrity branding is a type of branding , or advertising , in which a celebrity becomes a brand ambassador and uses his or her status in society to promote a product, service or charity, and sometimes also appears as promotional model.

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Celebrity branding can take several different forms, from a celebrity simply appearing in advertisements for a product, service or charity, to a celebrity attending PR events, creating his or her own line of products or services, and/or using his or her name as a brand. The most popular forms of celebrity brand lines are for clothing and fragrances. Many singers, models and film stars now have at least one licensed product or service which bears their name.

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IS THERE A NEED OF CELEBRITY ?????? (WITH RESPECT TO OUR STUDY)

They attract more attention to the advertisements. They are viewed as more credible than non-celebrities Values and image of the Brand is defined and highlighted and refreshed by the celebrity Celebrity adds new edge and dimension to the brand.

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Celebrity Endorsements
Andie MacDowell - Actress Beyonce Knowles - Singer Diane Keaton - Actress Elizabeth Banks - Actress Eva Longoria - Actress Evangeline Lilly - Actress Freida Pinto - Actress Gwen Stefani - Singer Jennifer Lopez - Singer, Actress Julianna Margulies - Actress Kerry Washington - Actress Penelope Cruz - Actress Scarlett Johansson - Actress

SWOT ANALYSIS OF LOral

t

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 Brand imageWorld No.1

STRENGTH S

Research & development-586 patents Innovation on IN products Range of portfoliodiversity of products Global brandpresence in 130 countries Brand confusion Positioning in the myriad brands Presence remains underdeveloped in emerging countries

WEAKNESS

OPPOURTINITIES
Emerging markets of developing countries Growing cosmetic and grooming market Newer acquisitionsmore range of products

THREATS Local players in the new market expansions Brand cannibalization

THREATS

Data analysis and interpretation

marital status

Married 54%

SINGLE 46%

Age group of the respondents

35 30 25

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15

10

0 18-29 30-39 40-49 50-59

Click to edit Master title style

Qualifications of the respondents

below high school qualification 2% associates degree 2%
a high school diploma 1%

graduate of professional degree 62%

bachelors degree 33%

PARAMETERS OF CELEBRITY ENDORSEMENTS

Physical Attractiveness Advertisements attributes Celebrity/brand Congruency Customer Attitude Purchase Intention

Physical Attractiveness
80% of the respondents gave positive review about the celebrities physical attractiveness. 20% gave the negative review

negative review 20%

positive review 80%

Celebrity/brand Congruency (harmony/compatibility

75% gave positive responds that they arefamiliar with the celebrity who appeared in the ad. 25% of the respondents are not able to recall the celebrity name at the time of purchase.

negativ e review 25% positiv e review 75%

Customer Attitude (Good Bad ,Uninteresting Interesting, Uncreative Creative, Uninformative Informative)
66% of the respondents are liking the advertisements. 34% of the respondents are not liking the advertisements.

not liking the adds 34%

liking the adds 66%

Purchase Intention (intent to purchase products)

30% of the respondents were likely to purchase L'Oreal products. 25% were likely to try these products if seen in a store. 45% were not interested in buying these products.
not intere sted 45% likely to purc hase 35% wants to try 25%

Advertisements attributes (Beliefs of customer towards the adds celebrity with respect to misleading ,entertaining ,persuasive
30% of the respondents as were the opinions that these adds are entertaining. 35% of the respondents as were the opinions that these adds are persuasive. 10% of the respondents as were the opinions that these adds taught them about the fashion

adds for fashion 10% adds are persuas ive 15% adds are entertai ning 35%

Findings
The customers likes the celebrity adds with respect to entertaining, and persuasiveness. The customers liking towards the celebrity adds are not getting converted into their purchase intentions. There is a contradiction between their likeliness towards celebrity adds and purchase decision.

suggestions
The company should identify and fill the gap between the likeliness of the customer towards the celebrity adds and their purchase decision.

THANK YOU