L'Oreal Marketing

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Table of content: I. Introduction of the company and internal analysis.........……....…3 1.Development………………………………………………....... 3 2.Mission and concept………………………………………........3 3.Business ethics……………………………………………........3 4.Social responsibility…………………………………………....4 5.Relationship with costumers and suppliers……………...…......4 II. Industry analysis……………………………………………....….4 1.Competitors………………………………………………….....4 2.The beauty market.......................................................................5 III. Product mix and strategy………………………………………....5 1. Marketing strategy....................................................................5 2. Promotion..................................................................................6 3. Pricing.......................................................................................9 4. Positioning................................................................................9 5. Distribution.............................................................................10 IV. SWOT analysis of the company.......................................................11 Marketing suggestions....................................................................12 References...............................................................................................13

 

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Introduction of the company and internal analysis Development The company was found in 1907 in Paris by a young French chemist Eugène Schueller, who developed an innovative hair-color formula. In 1912, the products reached Austria, Holland and Italy and by 1920 it was available in 17 countries. At that time working staff of L’Oreal consisted of three research chemists and ten sales agents. The company stared the business as a hair-color manufacturer, and today the brand includes four major beauty categories - hair-color, cosmetics, hair-care and skin-care. (http://www.lorealparis.ca/the-brand/who-are-we.aspx) Nowadays, L’Oreal has 68 900 employees in 66 countries, 44,060 of them have received training (L’Oreal 2011 Annual report, p. 25) and its sales in 2011 was EUR 20.3 billion. (L’Oreal 2011 Annual report, p.18). The company works worldwide through subsidiaries and agents. Mission and concept L’Oreal states its mission as “Beauty for all” (www.loreal.com) and the company’s goal is to provide all women and men the best cosmetic products in terms of quality. L’Oreal achieves that goal by being very flexible and sensitive to the costumers’ demands. For most, the name “L’Oreal” is associated with the phrase “Because I’m Worth It.”- the concept behind the advertising campaign. Slogan represents a spirit of the brand- to help every woman to enhance her unique beauty while improving her natural sense of selfworth. Business ethics L’Oreal is very concerned with the business ethics: in 2010 it was named as one of the world’s most ethics company by the research of Ethisphere University. (www.cosmeticsdesign-europe.com). The management structure of the company is also based on business ethics. The group’s Director of Ethics reports directly to the Chairman and Chief Executive Officer, and has access to all information and documents. “Ethics is at the heart of L’Oreal’s commitments” (L’Oreal Annual report, 2011, p.25)

 

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Social responsibility L’Oreal has involved in certain social and environmental activities. For many years the company has been taking actions to reduce the impact of their product’s manufacture and life cycle on the Earth. Within last 6 years the company decreased the water consumption, waste generated and greenhouse gas emissions by 22.6%, 24,2% and 29,8% respectively. The objective of the company is to decrease it by 50% by 2015. (L’Oreal Annual Report 2011, financial highlights) Relationships with costumers and suppliers The company mainly targets its products to females from 18 to 40 years old all over the world. Five outstanding performances of L’Oreal are in...
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