L Oral Global Brand, Local Knowledge

Case Summary
Founding in 1990S, Loreal tightly coupled innovation and speed to market with expansion of its
geographics and consumer base. While Revlon was credited with the claim that the beauty
industry sold hope in jar. Loreal aimed to sell the science of beauty in jar and in 2010, held
612 patents. Loreal, a leading player in beauty and skin care market. Loreal did not just accept
tto have local brands.
Selling the science of beauty around the world :
In 1907, Loreal started an innovation developed hair color formula. Known then as Aureole.
The product sold to Parisian hair dressers.
In 1988, CEO Lindsay Owen Jones focused on five core business and technology (hair color, hair
care, skin care, color cosmetics and fragnance) and drove to make them global.
In 1996, Loreal acquired Maybelline. In late 1990S Loreal and Maybelline were the two fastest
growing brands in the U.S., Loreal was perceived as the supremely elegant, high-
proceed luxury brand and Maybelline was views as high-quality / low-price value
brand.
In 1999, Loreal Began targeting men.
In 2003, Loreal strength in high-end and middle range.
Loreal created institute for Ethnic hair and skin research in Chicago
In 2004, One of the top Chinese make up and skin care brand.
In 2005, Opened a research center in Pudong, China.
In 2010, Loreal launched YouTube channel Destination Beauty
Loreal was one of the firms most powerful marketing tools, Loreal focused increasingly on
catering to diverse populations; thus included term enriched by their cultural diversity,
distribution channel and research that is capable of grasping the worlds complexity. Another
way to give broader consumer base access to prestige was to develop and sell products in the
category known as masstige (a combination of mass and prestige). Loreals leading masstige
brand and one of the first brand globally to over high quality at an affordable price. The brand
generate nearly 50% of the companys total sales in Western Europe and 20% in U.S, and had
over 3% of the global beauty and personal care market.
Organization:
Loreal operation were further broke Loreal operation were further broke into four divisions:
1. Consumer products division
2. Luxury Products division
3. Professional products division
4. Active cosmetics department create.
Each division had its own marketing team, structured around. Individuals brands to ensure
brand integrity. The managers know that they cant play the position of the brands. they did not
play with the boxes. The trick is to do innovative things inside of each box.

Main Issue
Loreal want to offer everyone, all the world the best cosmetics in terms quality, efficacy and
safety. Give everyone access to beauty by offering products harmony with their needs, culture
and expectations.
Loral aimed to double its customers base to two billion by 2020 and increase its share of sales
from emerging market from 30% to 50%.

Analysis SWOT
Strength:
- Loreal strength in high-end and middle range cosmetics
- Loreal has five core business (hair color, hair care, skin care, color cosmetics and
fragrance)
- Loreal created Geocosmetics aimed to deliver actionable consumer research results to
help regional regional teams tweak products.
- Brand diversity
Opportunity:
- Loreal developed brands in the low-, mid-, and high-ends which every brand has their
own brand policy.
- Loreal launched technologically advanced products like Express finish fast-dry nail
enamel and great wear makeup
- Loreal had to catering to a diverse customer base.
- Loreal heavily in advertising
- Loreal endorse celebrity, beauty blogger
 - Loreal brandstrom, a competition that challenged students to come up with a new
marketing concept for a series of Loreal brands.
- Loreal had strong reputation as a leading print media advertiser with a consistent
presence in almost every fashion magazine.
Weakness:
- Loreal spent 3.5% revenue on R & D
- Loreal spent heavily expense in adevertising and endorse.
- Loreal did not have focus product
- Loreal did not use direct sales, it hired personal beauty, so the expenses is to much.
Threatening:
- Another competitor such as Revlon.
- Wrong Assumption of the target

Recommendation:
Loreal strategy used called class of mass, Loreal must pay attention to the target market
seriously, errors in identification causes problem wrong assumption of the target.

Product of Loreal :