Overview of L'Oréal

  • L’OREAL was founded in 1909  by Eugène Schueller and its the actual mondial leader in cosmetics sector


  • 'We have devoted our energy and our competencies solely to one business: beauty'


  • The group has more than 20 brands eg Lancôme. Giorgio Armani. Biotherm. Ralph Lauren, Garnier or Maybelline


  • L’Oréal has operations in over 130 countries

L'Oréal in India

  • L’Oréal has been present in India for 22 years, with the first subsidiary company started being run in 1994 by Pierre-Yves Arzel


  • The Group is the second leading operator in the Indian cosmetics market


  • It is the fastest growing beauty company with an annual average of +30.2% and represented in more than 750,000 points of sale

L'Oréal in India

  • L’Oréal is present in India since 22 years, with the first subsidiary company started being run in 1994 by Pierre-Yves Arzel. L'Oréal Invest Rs 1,000 crore between 2011-2016 in India


  • The Group is the third leading operator in the Indian cosmetics market. 


  • Annual average of +30.2% and represented in more than 750,000 points of sale.

Cosmetics Market in India

  • Take care of his beauty is part of the culture in India and its a unisex tradition


  •  Traditional Arjudveda ritual of beauty consisting of bath, massage, skin care,... 


  • India is the 10e market for beauty and cosmetic sales in the world, and reached US $4.75 billion in 2011. Double-digit growth over the next decade.

Difficulties faced by the French group 

Cultural gap 

Habits of using natural and biologic beauty products like Kaja

Products with animal substancies is taboo

Huge competition 

12 competitive brands in India with quite equale market share

Most experimented on the India Market (Lakmé, Avon)

Way of distribution 

The Kiranas Model

Expansive products = Issue of Brand positionning strategy



  • Strategy to reach a large social category of Indian and not only the upper class


  • New format of packaging (2,3,6 ml) to reach majority of Indian population trough the Kiranas.


  • Progressive implementation of products with capillary care and eyeliner products in first(biggest demand)


  • Mass communication with famous top model and Bollywood actors (Ashwarya Rai, John Abraham)


Operational watching very efficient

  • L’Oréal had successfully implemented several cosmetic brands, eg. Garnier and Maybelline with best seller as the  eyeliner.


  • Garnier Men represents 15% of the sales in India with 47% of annual growth.


  • They reached the Second place in the cosmetic market in India through this strategies and l'Oréal has huge volume of sales

Recommandations

  • Continue to reach more selling points with this strategy of small size packaging with the most demanding products (hair care, makeup)


  • Start to implement their products more technologic for niche market especially in urban areas


  • Concentrate on the demand of beauty product for men with the Brand Garnier

QUESTIONS ?

THANK YOU !

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Loréal

by regislopezkaufman

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Public - 9/9/16, 11:49 AM