loreal core concepts
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loreal core concepts Document Transcript

  • 1. NEED/ WANT/ DEMANDNeed: It is state of deprivation of some basic satisfaction.e.g. - cosmetic productWant: Desire for specific satisfier of need.e.g. - Indians - wants clear skinAmericans - wants healthy hairDemand: Want for a specific product backed up by ability andwillingness to buy.e.g. - Need – cosmetic productWant – hair shampoo+conditioner ……but able to get only shampooTherefore, demand is for shampoo
  • 2. MARKETING MANAGMENTMarketers cannot create needs. Needs preexists. Marketers caninfluence wants. This is done in combination with societal influencers.Demand influenced by making product- APPROPRIAT ATTRACTIVE APPROACHABLE/AFFORDABLE AVAILABLE EASILYTo target consumers (4 P’s) – Product/ Promotion/ Price/ Place PRODUCTS- GOODS/ SERVICES/ PLACEProduct is anything that can satisfy need/ want.Product component-1. Physical Good.E.g. Face cream, shampoo, hair oil etcPhysical Good – cosmetic material Along with products loreal also have their saloons/parlourHence, in marketing, focus is on providing/ satisfying service ratherthan providing only products. VALUE/ COST/ SATISFACTIONDecision for purchase made based on value/ cost satisfaction deliveredby product/ offering.Product fulfills/ satisfies Need/ Want.Value is products capacity to satisfy needs/ wants as per consumer’sperception or estimation.Each product would have a cost/ price elements attached to it. 2
  • 3. MARKETING MANAGMENTNeed – beautyMethod/ Products- Satisfaction – Estimated by the result or its effectVALUE- Products capacity to satisfy.COST- Price of each product. EXCHANGE/ TRANSACTIONTo satisfy need/ want, people may obtain the product through- Self Production- By force or coercion- Begging- ExchangeEXCHANGE: – The act/ process of obtaining a desired product fromsomeone by offering something in return. For exchange potential toexist, the following conditions must be fulfilled.TRANSACTION: – Event that happens at the end of an exchange.Exchange is a process towards an agreement. When agreement isreached, we say a transaction has taken place.Proof of transaction is BILL/ INVOICE.Monetary Transaction- money is paid for the product 3
  • 4. MARKETING MANAGMENT Type Société Anonyme Industry Personal care Founded 1909 Founder(s) Eugène Schueller Headquarters Clichy, Hauts-de-Seine,France Area served Worldwide Key people Jean-Paul Agon (Chairman and CEO), Liliane Bettencourt (Non-executive director and major shareholder) Natalia Streignard Products Cosmetics and beautyproductsLOREAL - BUSINESS POLICY AND STRATEGY 27 GLOBAL BRANDS 130 COUNTRIES 68 900 EMPLOYEES 613 PATENTS FILED IN 2011. 4
  • 5. MARKETING MANAGMENT INTRODUCTION L’Oreal group, founded in 1909, by Eugène Schueller, ayoung French chemist today is the worlds largest cosmetics and BeautyCompany. Headquartered in Paris, and by now the company is one ofthe leaders in the beauty market while providing a wide variety ofproducts for each segment of its market tailored to meet expectations ofits customers. L’Oréal does and has always have believed in the strategyon innovation and diversification. Due to the products’ uniqueness,L’Oréal’s product became well-known and popular among all ethnicgroups, not depending on gender. MISSION The company’s mission is to promote an approach to beautythat is fun, affordable, fulfilling, genuine and generous while meeting allstakeholders’ expectations by providing a portfolio of deeply diversifiedrange of products. (L’Oréal Group 2007) VALUES Striving For Excellence: L’Oréal is trying to enchant thebrand portfolio with continuously innovating products while meeting allstandards set for quality and safety.Passion for adventure: their expertise drives their passion for newdiscoveries andinnovation in cosmetics.Enrichment through diversity: understanding and valuing eachindividual is an essential part of their corporate culture. Their staffmembers come from many different backgrounds and work together to 5
  • 6. MARKETING MANAGMENToffer a full range of products through varied distribution channels.Valuing individual talent: they are dedicated to enhancing the well-being of their consumers; they also ensure that each employee has theopportunity to develop his or her potential through personal andprofessional growth.Leading innovation in beauty: research, sensitivity to consumer needs,know-how and expertise are as essential as intuition. Building on theirunrivalled experience and expertise, fundamental research is a specificfocus of investment that drives creativity and contributes to developingthe cosmetics of tomorrow.Vision:“A company that is highly successful economically.A company where people are enthusiastic about going to work.A company that respects the environment and acts... DISTRIBUTION ITALY, AUSTRIA and HOLLAND Later US, RUSSIA and FAR EAST Now present worldwide Found in all major drug stores, supermarkets, beauty salons and even direct mails Since 2009, the company has more than doubled distribution reach - from 250,000 outlets to 600,000 PROMOTIONAL STRATEGY Promotional posters Launch of beauty magazines for women Votre Beaute Clean children campaign 6
  • 7. MARKETING MANAGMENTCreation of jingles be nice & clean, smell good for dop shampooAdvertising through film commercialsSelecting local brand ambassadorsOpen spa to promote brandAdvertising campaign because I am worth it POSITIONING STRATEGIESMost InnovativeHigh qualityAdvanced productsAffordable priceOnly cosmetic brand in the world that has products in allsegments consumer, luxury, professional and pharmacuetical DISTRIBUTION STRATEGYThrough agents and consignments to US, SouthAmerica, Russia,Far-East CONCENTRIC DIVERSIFICATIONHair colorStyling aids, cleansers, fragrances, body and skin cosmetics etc. HORIZONTAL INTEGRATIONAcquisition of Maybelline, red ken, Ralph Lauren, Soft SheenCarson 7
  • 8. MARKETING MANAGMENT 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 LOreal joint venture with Nestle. INDIAN BRAND AMBASSADORSAISHWARYA RAI BACHCHAN SOONAM KAPOOR 8
  • 9. MARKETING MANAGMENT GRAPHS DESCRIBING THEIR STRATEGY GEOGRAPHIC ZONE % geographic zone 40 31 30 24 20 20 13 10 9 0 Asia, Pacific Western North Europe Latin America Eastern America Europe Geographical distribution of products/ demand for products PRODUCT CATEGORY % product category 31 35 30 25 25 20 17 15 14 10 12 5 0 1 Concentration on different product category 9
  • 10. MARKETING MANAGMENT DIVISION % division 60 52.1 50 40 30 25.5 20 14.9 10 7.2 0 Consumer Luxury Products Professional Products Active Products Cosmetics Products distributed in different status BUSINESS SEGMENT % Sales 27.9 30 25 21.5 21.3 20 15 14.6 10 9.8 5 4.9 0 10
  • 11. MARKETING MANAGMENT LOREAL COMPARISON WITH ORIFLAME OPERATING PROFITS OPERATING PROFITS 4,000.00 3,000.00 2,000.00 1,000.00 loreal 0.00 oriflame 2010 2011 2010 2011oriflame 1,002.50 1,014.80loreal 3,293 3,057.00 SALES MILLION € 30,000.00 20,000.00 SALES 10,000.00 loreal 0.00 oriflame 2010 2011 2010 2011oriflame 1,513.60 1,493.80loreal 19,496 20,343.00 11
  • 12. MARKETING MANAGMENT CONCLUSIONL’ORÉAL is the world market leader in cosmeticsinnovative and invest a lot of money in research and developmentProducts are positioned in the high-priced segment because oftheir qualityThey offer well coordinated products for different target groups To keep their strength alive they have to observe theircompetitors like PnG and UNILEVER -Thank you 12