JGBS ID- 20110021
PRODUCT CATEGORY- HAIR COLOUR
TABLE OF CONTENTS
2.INTRODUCTION - COMPANY & CATEGORY
5.BUYING DECISION PROCESS
8.PRODUCT LIFE CYCLE
10.PORTER 5 FORCES MODEL
’Oreal is a global beauty brand. Its signature phrase, “Because I’m Worth It”, is meant to inspire all woman who wants to embrace her own unique beauty and reinforce her sense of self-worth. I believe that everyone should have the ability to express themselves. That’s why they are committed for creating ground-breaking and high-quality beauty products for all ages and ethnicities. After the Liberalization of our Economy in 1991 with L’Oreal so many internationally recognized companies in the field of Beauty products like Wella, Schwarzkopf etc. entered into the Indian market. The major problem with L’Oreal was to establish itself on the top with the quality of the products by adopting various methods of advertisements and proving the product qualities. The ultimate sale graph in the period of 20 years shows that the success story of the company in the field of hair color. Now the company is at such a stage that Hair color and L’Oreal are synonymous to each other in Indian market. The problem identified was to establish in rising Indian market as the size of L'Oreal brand makes it synonymous with "Big Beauty" globally. This presented the challenges to overcome the salon experience from the alternative of simply doing coloring your hair at home. This has been shown as an emerging tough problem for L’Oreal as they have traditionally diverted once salon-only products to sell through their retail distribution channels like drugstores and department stores. This trend, has been called salon product diversion, is particularly troublesome for salon professionals who previously paid a healthy premium for the same products and build up loyal clients around the brands. Drugstore, the salon professional inevitably loses clients as once the brands are available on-the-low price from the corner. This trend is not likely to change of so easily in salon product diversion by L'Oreal .Indeed professional channels provide less than 15% of their annual revenue while the retail & consumer business gives majority of the remaining 85% according to their last public filing. With social and environmental responsibility, L’Oreal must overcome their challenges in their professional hair color business. As consumers and salon professionals have gone much more conscious of their impact on society and the environment, therefore they are expecting the same from their product manufacturers.
LOREAL COMPANY PROFILE-
FOUNDER OF THE COMPANY -Eugene Schueller
CAREER OF THE FOUNDER-Scientist, Inventor, young chemist & natural entrepreneur THE YEAR LOREAL WAS FOUNDED- 1909
One of the colossal names in the beauty industry has been L’Oreal. With its registered office in Paris and head office in the Paris suburb of Clichy, Hauts-de-Seine, France, it has developed activities in the field of cosmetics. L’Oreal dates back to 1907, when Eugene Schueller, a young French chemist, introduced a hair dye formula called Aureole it’s a great innovation by formulating and manufacturing his own products and then sold them to Parisian hairdressers. Shueller registered his company in 1909, under the name Société Française de Teintures Inoffensives pour Cheveux in English meaning; "Safe Hair Dye Company of France". The business started off small, employing three chemists in initial stage 1920, but by 1950 the research teams comprised a total of 100 staff, and by 1984 this number reached 1,000. L’Oreal has begun its business in the area of hair-color, but as they expanded they broadened their range to various other cleansing and beauty products. The company now markets over 500 brands...