I. Current Offering of the L’Oréal Paris Brand
L’Oréal Paris is just one of the many global consumer product brands owned by the megacorporation L’Oréal. Natalie Cristo, the Senior Vice President of L’Oréal Paris, stated that L’Oréal Paris is the flagship brand of the company and that it celebrates the value of the consumer (Jeffries, 2011). With a legendary slogan, “Because you’re worth it”, L’Oréal Paris emanates femininity, modernity, and quality L’Oréal’s annual report for 2011 stated that ‘behind this slogan, which was revolutionary at the time, lies the vision of a sophisticated and elegant woman, who asserts her personality and is ready to take on the world’. In order to fulfill this image, the brand offers multiple product lines in the categories of skincare, cosmetics, hair color, hair care, and styling (hair). The brand has also been able to revitalize its image by including a men (hair and skin) category in order to tap into a new market. This brand is a major competitor in the global consumer products industry and can be found in almost every continent. L’Oréal Paris’ sub-brands under the hair care and styling category are Ever, L’Oréal Kids, Vive Pro, Studio, Elnett Satin, and Elseve (ASEAN) or Elvive (Europe). For this case, however, the focus will be on the brand’s hair care and styling categories in the ASEAN strategic hub, which includes Indonesia, Malaysia, the Philippines, Singapore, Thailand, Vietnam, Brunei, Burma, Cambodia, Laos, and India.
The ASEAN region is the largest regional emerging market in the world with India being the largest emerging market in the world, next to Brazil. There is increasing social and business activity due to rapid growth and industrialization. Nevertheless, everyone wants to invest there. Competition is increasing in every industry, as companies not only compete for ASEAN resources, but the consumers as well. Competition is especially fierce in the consumer products industries and innovation is key. Hair care and styling makes up 23% of the cosmetics market in Asia (L’Oréal 2011) which makes these industries very lucrative for competitors. Some of L’Oréal Paris’ major competitors are Unilever and Procter & Gamble.
Some of the brands produced by Unilever in the region are Sunsilk, Lux, Hazeline, Clear, Clinic Plus, and Dove. Sunsilk is the number one product used in Asia (Unilever, 2012) and targets all types of consumers, generally ages 15-35, with the product lines; color, shape and lengths, damage repair, smooth hair, scalp care, black shine, and curly hair. Dove has an array of product lines for skin care and hair care. Its hair care product lines are Damage Therapy, Straight and Silky, Anti Dandruff, Dry Therapy, and Daily Therapy target mainly women between the ages of 24 to 50. Dove focuses ‘on delivering products that inspire women to enjoy their own beauty and individuality’ (Unilever, 2012). Unilever has the largest market share in Thailand, India and Indonesia.
With respect to promotion, Unilever’s promotional mix includes television and print advertising, Internet promotion including blogs and chat rooms, sponsorship, sales promotion, billboards, advertising alliances, public relations, and sampling. In India, Sunsilk is the largest spender in the media. Sunsilk sponsored events like ‘Femina Miss India’ and ‘India Fashion Week’.
b. Procter & Gamble (P&G)
Procter & Gamble’s brands are also very lucrative in the ASEAN region. These brands include Pantene, Rejoice, Clairol, Vidal Sassoon, and Head and Shoulders. Pantene’s product lines are Total Damage Care, Hair Fall Control, Smooth & Silky, Glossy Shine, Nature Care Fullness & Life, and Nature Care Smoothness & Life and ‘address specific hair concerns and restore lasting hair health for long-lasting benefits’ (Pantene Philippines,...