Marketing Business Report

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L’oreal Group
MCD 2050: Marketing 1, Major Assignment
Astari Deardaza (23756667)

Executive Summary
L'Oreal is the largest cosmetic group in the world. The company started in 1909 by Eugène Schueller because of the hair dye he invented. Since he opened the company there is a lot of changes happened from the company itself until the changes outside the company such as the macro environment also the microenvironment. Because of the environment changes, the way L'Oreal choosing the consumer is also different. They have to choose the right consumers that give them the most profit. The macro environment change affect the company, such as demographic and technology environment. Because of this changes the company have to change their way to treat their consumers. Demographic changes the company because people nowadays are become busier than before and it makes convenient products are more wanted. From the technology environment side, if the environment changes or the technology is developed it makes the production become faster and less waste. From the microenvironment, if the competitor change L’Oreal also have to update their product to become up-to-date because of the products is out of date then the customers will not be attracted. Another beside competitors is consumer itself. Consumers will demand more convenient product and it also will affect the company. Because of these changes both macro and micro, L’Oreal have to change their way to offer their product. They have to be more unique and different from other products to make the consumers choose them instead of their competitors.

Table of Contents
1 Introduction4
1.1 Industry4
1.2 Company4
2 Product Category5
2.1 Three Levels of Product5
2.1.1 Core Product5
2.1.2 Actual Product5
2.1.3 Augmented Product6
2.2 Branding6
2.3 Packaging6
2.4 Labeling6
3 Buyer Behavior7
3.1 Internal Factors7
3.1.1 Psychological Factor7
3.1.2 Personal Factor7
3.2 External Factors7
3.2.1 Social Factors7
4 Micro Environment8
4.1 Competitors8
4.2 Customers8
5 Macro Environment8
5.1 Technology Environment8
5.2 Demographic Environment9
6 Segmenting, Targeting and Positioning9
6.1 Segmenting9
6.1.1 Psychographic10
6.1.2 Demographic10
6.2 Targeting10
6.3 Positioning11
6.3.1 Product11
6.3.2 Promotion11
6.3.3 Place11
6.3.4 Price12
7 Recommendation12

1 Introduction
1.1 Industry
Women always try to improve their beauty (Lambert, n.d). From prehistoric, women already use many kinds of accessories to enhance their beauty (Lambert, n.d). Since that time, technology become more develop and cosmetic and make up starting to dominating the market. In 2012, technologies become more developed and the cosmetic industry has been developing since then. Because of the developing technology also increasing in the number of population in Indonesia, in 2010 the total amount for cosmetic sold is 11 billion rupiahs and increasing in 2011 that is 11,88 billion rupiahs. Based on research, the international cosmetic brand is dominating the cosmetic market in Indonesia, which is 55% until 60% of Indonesian cosmetic market (Monalisa, Suwismo, Fitra, 2011). 1.2 Company

L’Oreal is the number one largest cosmetic company group in the world. Eugène Schueller the founder of the company start creating the company since 1904 after he graduates as a chemist. In 1907 he demonstrates his idea about his new ideas about the newest formula of hair dye under the name Oreal that using harmless chemical compounds. Because of the hair dye he creates, he became famous and the company is build and become success until now. L’Oreal until 2009 already has 23 global brands in 130 countries and also has employ 66,600 employees and also L’oreal has 612 patents filed in 2010 (L’Oreal, 2010).In 2009, L’Oreal generate the sales until 19.5 billion euros in the world and 3,192 million sales in Asia, Pacific including Indonesia in 2010....
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