Raghunath Ganti

L’Oreal Brand Management Strategy

“Hitting the right audience with

the right product”
● High R&D

● Regular new products, new

markets, new Brands
“Diversity is a Priority” – French Company to
United Nations of beauty
● Brand repackaging

and selling
● Local Leadership –

multiple creative
● Maintain Local culture

● Multiple Brands of
Clear Brand
different origins
Positioning
● Precise positioning and

segmenting with little overlaps

22 L'Oreal Case - Brand Management
 L’Oreal’s Brand Essence
We want people everywhere to have easy
access to our products through a presence • Trustworthy
in outlets that match their individual • Elegant
lifestyles. • Caring
• Luxurious
• Constantly innovate to give best
products Brand Vision
• Provide value to all stakeholders and Objectives
Brand
Attributes
• Quality
• Elegance, Sophistication Value • Follow the culture
Proposition Brand
• Status Symbol you want to
• Stylish Essence
Brand • Global Luxury
Benefits Brand Name

Brand
Personality
• Young, Brand • Enhances self image – ‘I
• optimistic, Positioning
am worth it’
• Informal, • Live the ‘beautiful life’
• Feminine you dream of
• World’s number one
brand
• Break the norms,
33 L'Oreal Case - Brand Management
• Freedom
 Maintains Profits –Major Success
Factors
• Taking the path few choose
Strong
Leadership
• Inter Brand Rivalry
• Freedom to innovate
• Offered something different
Consum • Differentiation in an
er
undifferentiated market
Understa • Ensured that company never faced an
• Emotional attachment and great
nding downward phase – something would
communication
Offering always work 
Wide • Address major segments yet not
Range
• Huge R&D – always innovating –
cannibalize
• leadership
Consumerssupport had the power to CHOOSE
Staying • Offering
and be what the ‘intheything’
want – neutraceuticals
to be
ahead and now “ The Body Shop”
• Being aggressive – Promotion,
44 Bargains
L'Oreal Case - Brand Management
 Profits Through Brands

Analyze Coordinate Focus brand Consistent Transparent

success brand identity, define brand monitoring of
factors and management and prioritise presentation Implementation
risks in the targets with operational through success to
brand value corporate levers for alignment of Increase reaction
Strategy marketing speed and focus
creation target
activities with
Compare brand on the result
process Strategic achievement
Analyze Operational the brand Steering and
targets/Impleme
indicators planning planning targets
ntation controlling

Create and Maintain Brand Profits…Adapted from www.markenscorecard.com

- Brand target
Unpredicta in-line with Inter Brand All Brands in Top
ble - Trend corporate Competition all markets, management
dependent, targets encouraged one Brand clear about
to improve at focused on goals and
- New Brands
Pull Based all levels based on implementing
Acquired giving
huge profits local culture the same
- Market leader – 16.8% share;
- double digit profits for 18 conse. yrs;
- only company present in all 4 segments;
- operations in 130 countries;
55 L'Oreal Case - Brand Management
 What and Why of Maybelline

Objective of
acquiring
• Diversify away from Europe to become
a globally recognized Brand
Intent post • Make the brands embody their country
acquiring
of origin
Maybelline • Acquired an US based Brand, complete
makeover and target new consumer
segment and retain American Image
Success
• All aspects addressed – Location,
Factors
Target audience, Attributes,
• Innovation done to come up with
What Could • better did
Brand products
not have a strong image so
have gone
wrong
• Expanded itexercise
rebranding internationally
needed to a
immediately
success, else to leverage the gains
66 made
Company’s diversifying strategy
•
L'Oreal Case - Brand Management
 Existing Brand vs New Brand

• Complete control over the Brand –

Building to maintaining
Merits
• Can develop it meets some specific
future needs of consumers
Crea
ting
a • Huge investments
New
Demerits • Success not guaranteed
Bran • Timeframe long – Returns take time
d

77 L'Oreal Case - Brand Management

 Existing Brand vs New Brand
• Ready Market – Consumer Base.
• Allows breaking into a new market,
consumer segment.
Merits
• Can be used as aggressive or
defensive strategy
Acqu
iring •
• Success
Altering can beimage
brand estimated in advance
- difficult
a • Possible need for immediate
existi
Demerits
ng investment
Bran • Possible impact on base Brand
d

88 L'Oreal Case - Brand Management

 L’Oreal’s Portfolio Management

“It is a very carefully crafted portfolio. Each brand is

positioned on a very precise segment, which overlaps as little
as possible with the others."

What They
WhyDo
it succeeds
• Acquiring• local brands around the world
Little overlap between Brands
• Ensures no cannibalization – future
• Retain local cultural aspects of the brand and
enhanced by inter brand competition
make them major Brands
• Freedom for Brands to innovate and develop
• Narrow target of customers
new products
• Developing emotional attachments with
consumers
• Entire spectrum of consumers and products
addressed
• Offer all Brands, promote one Brand

99 L'Oreal Case - Brand Management

 Thank you…

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Second level
● Third level

● Fourth level

● Fifth level

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