Loreal Market Entry Strategy India & China

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A
Report on

L’Oreal’s business and entry strategy in India and China

Indian Institute of Foreign Trade, New Delhi

Submitted to : Dr Gautam Dutta
Submitted by : Group 6 (Section B)

Acknowledgement

This report is prepared in subject International Marketing Management studied in third trimester in part time MBA (International Business).

This report is prepared under guidance of Dr Gautam Dutta, Indian Institute of Foreign Trade, New Delhi.

Presented by (Group-6):

1. Aditya Sharma (54)
2. Gordhan Meghwal (106)
3. Harmeet Singh (71)
4. Ranjth Kumar (87)
5. Satendra Singh (93)

Table of Contents
1.Abstract:4
2.Introduction4
3.The Global Reach Of L’Oreal5
4.The Business5
5.The Product Categories5
5.1.Consumer products5
5.2.Professional products6
5.3.Luxury products6
5.4.Active cosmetics6
6.Corporate Strategies7
6.1.The Strategist7
6.2.Initial Strategy7
6.3.Mergers and Acquisitions7
6.4.Cross-fertilization:8
6.5.New Geographic Areas9
6.6.Research and Development9
6.7.Entering New Business10
6.8.Exploring New Opportunities10
7.Corporate Social Responsibility10
8.Achievements10
9.A Complete Global Changeover11
10.SWOT analysis12
11.L'Oreal’s Journey in India13
1.Consumer Products14
2.Luxury products14
3.Professional Products14
4.Active Cosmetics14
12.L'Oreal’s Journey in China15
12.1.Result16
12.2.The China Observer View17
13.Conclusion17

1. Abstract:

L'Oreal, the world's largest cosmetics company entered the booming Indian hair color market in 1997. Since then, it has been meeting demands of its Indian consumers, competed from local and international companies and expanded from cities to the two and three-tier towns of India. This case provides detailed and comparative study in entry in Indian and China. It describes L'Oreal's entry and marketing strategies, the hurdles it has to overcome in India. The case offers scope for discussion on L'Oreal's competitive position in hair color industry. It also provides information for discussion on the problems it faces due to the business environment in India and future plans for L'Oreal India. The case also provides scope for discussion of marketing efforts by other competitors.

2. Introduction

Eugene Schueller a young French chemist developed an innovative hair color formula, Aureole. He manufactured his own products and sold them to Parisian hairdressers. The company was registered in 1909. The guiding principle from the beginning was research and innovation in the interest of beauty.

By, 1950 had acquired 100 products and today they are 2000 product strong. From the beginning Eugene was ambitious about his company and by 1912 the brands were found in Holland, Austria and Italy. In a few years the company was distributed US, South America, Russia and Far East. Today, L’Oreal is present worldwide through its subsidiaries and agents. L’Oreal started out in hair colour business but soon branched out into other cleansing/beauty products.

L’Oreal’s century long history is marked with successes. Today the 500 brands of L’Oreal provide diverse products from hair color, permanents, styling aids, body and skin care, cleansers and fragrances.

The distribution channels are diverse from hair salons to super markets and hypermarkets, health and beauty outlets and direct mail.

In 1933, Voutre beaute a magazine devoted to beauty and well being of women was launched. The 1950s saw the advent of new and exciting advertising medium: the movies. L’Oreal made its onscreen debut with the campaign for Ambre Solaire, which was making a comeback on the market.

3. The Global Reach Of L’Oreal

L’Oréal is the world’s largest cosmetics company; present in over 130 countries with 66,600 employees world-wide. The company had a...
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