L’oreal Swot Analysis

Topics: Cosmetics, Marketing, L'Oréal Pages: 7 (2593 words) Published: March 16, 2011
Many cosmetic brands are popping up recently, perhaps, due to the increasing consumers of products that beautify and enhance the physical appearance of a person. Even though the market is already full of the said cosmetic brands, the company L’Oreal Groups could still be considered as the leading supplier of cosmetics and hair-color. This studyis a brief overview of the marketing concepts and strategy of the said company. The company profile will be presented to be able to give a clearview of the market to which the company belongs to. An internal and external (SWOT) analysis of the company will also be provided inthis paper. Another area will bespecificallydevoted to the implementation of the marketing strategy of the company as well as the ethicalissues raised by these marketing strategies

Company Profile
Before the facial cosmetics, L’Oreal was known as a hair-colorformula developed by French chemist Eugene Schueller in 1907. It was then known as"Aureole". Schueller formulated and manufactured his own productswhich were sold to Parisian hairdressers. It was only in 1909 that Schuellerregistered his company as "Societe Francaise de Teintures Inoffensives pour Cheveus,"the future L’Oreal. Scheuller began exporting his products, which was then limited to hair-coloring products. There were 3 chemists employed in 1920. In 1950, the research teams increased to 100 and reached 1,000 by 1984. Today, research teams are numbered to 2,000 and are still expected to increase in the near future. Through agents and consignments, Scheuller further distributed his products in the United States of America, South America, Russia and the Far East. The L’Oreal Group is present worldwide through its subsidiaries and agents. L’Oreal started to expand its products from hair-color to other cleansing and beauty products. The L’Oreal Group today markets over 500 brands and more than 2,000 products in the various sectors of the beauty business. Such includes hair colors, permanents, styling aids, body and skincare, cleansers and fragrances. Indeed, the L’Oreal Group have reached the peak that all cosmetic brands sought after. Many factors contribute to the success of the Company. These will be discussed further in the proceeding parts of this study.

L’Oreal SWOT Analysis

A. Internal Analysis
1. Strengths
The ongoing success of the L’Oreal Group is without if not for the ingenuity of the concept of their vision as a team. L’Oreal Chairman and CEO Lindsay Owen-Jones considers passion as the key to the well-renowned accomplishment of the said Company. The primary strength of the Company is the continuing research and innovation in the interest of beauty which assures that the L’Oreal Cosmetics offers the best to their consumers. Their dedication to their continuous research makes them the leader in the growing cosmetics industry despite the competition in the market.

Another strength of the L’Oreal Groups is the developed activities in the field of cosmetics as well as in the dermatological and pharmaceutical fields in order to put more concentration in their particular activities. The cosmetics activities of L’Oreal are divided to five groups. First is the Consumer Product Division which encompasses all the brands distributed through mass-market channels, ensuring that L’Oreal quality is available to the maximum number of consumers. The Luxury Products Division includes the prestigious international brands selectively distributed through perfumeries, department stores and duty-free shops. The Professional Products Division offers specific haircare products for use by professional hairdressers and products sold exclusively through hair salons. The Active Cosmetics Department creates and markets products for selective distribution through pharmacies and specialist health and beauty outlets. The L’Oreal Group’s dermatological activities are linked with Galderma, which is basically a dermatological firm...
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