Presentation on Loreal Case

Group members : ANKUR SHARMA HARSHIT SULTANIA NEHA JOSHI PALLAVI ARUN

L'Oreal Global Brand Management Strategy

PROMOTIONAL STRATEGY: Promotional posters Launch of beauty magazines for women Votre Beaute Clean children campaign Creation of jingles be nice &clean, smell good for dop shampoo Advertising through film commercials Selecting local brand ambassadors Open spa to promote brand Advertising campaign because I am worth it

 POSITIONING STRATEGIES: Most Innovative High quality Advanced products Affordable price Only cosmetic brand in the world that has products in all segments consumer,luxury,professionalandpharmacuetical.

 DISTRIBUTION STRATEGY: Through agents and consignments to US, South America, Russia, Far-East CONCENTRIC DIVERSIFICATION: Hair color Styling aids,cleansers,fragrances,body and skin cosmetics etc.

 HORIZONTAL INTEGRATION: Acquisition of Maybelline, red ken, Ralph Lauren, Soft Sheen Carson

MARKET DEVELOPMENT STRATEGY: Develop strategies for Maybelline lipstick in Japan RELAUNCHING BRANDS: Relaunched Helena and Rubinstein skin care and cosmetic brands HITTING THE RIGHT AUDIENCE WITH RIGHT PRODUCT

CONGLOMERATE DIVERSIFICATION AND JOINT VENTURE STRATEGY: L'Oreal joint venture with Nestle

Was L'Oreal strategies responsible for its impressive financial performance

Yes we think the strategies were primarily responsible for its impressive financial performance because it made sure that each of its brands has its own image and take care that its image do not overlap with the image of another product

Factors helping the company to remain profitable

Developing new products Strong R&D Expanding into key international markets Investing in new facilities Adding glamour to its brand to make it more appealing

 Initially Maybelline was ordinary US brand and dealt with staid color lipsticks and nail polishes which had only 3% market share in US . L'Oreal took over the brand and decided to give a complete makeover to it. Makeover by L'Oreal : Maybelline Launched new make up line in bold colors. It was medium priced. Its product identity was spirited and lively Target segment was teenagers and middle aged women The brand retained its American Image L'Oreal promoted all its brands in different nations but promoted

Jones strategy of acquiring brands of different cultural origins around the Globe: MAYBELLINE

Merits of acquiring existing brands by L'Oreal

Customers who are frequent and enthusiastic purchasers of a particular brand are likely to become Brand Loyal. So L'Oreal cultivated brand loyalty among customers is the ultimate reward for successful marketers since these customers are far less likely to be enticed to switch to other brands compared to non-loyal customers. The well-developed and promoted brands made product positioning efforts more effective for L'Oreal which resulted upon exposure to a brand (e.g., hearing it, seeing it) customers conjure up mental images or feelings of the benefits they receive from using that brand. L'Oreal established a successful brand and extended the brand by adding new products under the same L'Oreal family brand. Such branding may allowed L'Oreal to introduce new products more easily since the brand is already recognized within the market.

Demerits of acquiring existing brands by L'Oreal

Brand extension in unrelated markets may lead to loss of reliability if a brand name is extended too far. An organization must research the product categories in which the established brand name will work. There is a risk that the new product may generate implications that damage the image of the core/LOreal brand. The acquired brand may not compliment the image of the acquiring brand.

Four Segments Of Cosmetic Market

Profession al Products for hair salon
Luxury product as prestigious brands sold in specialty stores Consumer Product for mass market at competitive prices through retailing channels Pharmaceuti cal supported by advice from pharmacists and dermatologist s

Positioning Strategy :Repositioning of brands

LOreal followed a positioning strategy of repositioning its brands according to :
Changing preferences Opinions of customer Local customer

Encouragement of competition by L'Oreal among its own brands

It followed a multi brand strategy i.e same kind of products under different brands It helps to adapt market differentiation and improve market share by providing equal opportunities to all brands. It encourages inter-brand competition Self competition among brands gives ample freedom to develop and innovate better products which helped to differentiate amongst L'Oreal brands and assured that brands image did not overlap.

FUTURE PLANS
L'Oreal turns to cheaper products to spur future growth

The Body Shop has drawn up a fresh strategy, including aggressive discounts and opening of new stores, to tap the market. They are focusing on the south market and are planning to open 10 stores in places like Chennai and Hyderabad. At present, the company is operating 25 stores in