L’OréalBackground historyThe LOréal Group is the worldslargest cosmetics and Beauty Company. With its registered officein Paris and head office in the Paris suburb of Clichy, Hauts-de-Seine, France, it has developed activities in the field of cosmetics.Concentrating on hair color, skin care, sun protection, make-up, perfumes and hair care, the company is active inthe dermatological, tissue engineering and pharmaceutical fields and isthe top nanotechnology patent-holder in the United States.Eugene Schueller a young French chemist developed an innovative haircolor formula, Aureole. He manufactured his own products and soldthem to Parisian hairdressers. The company was registered in 1909. Theguiding principle from the beginning was research and innovation in theinterest of beauty.By, 1950 had acquired 100 products and today they are 2000 productstrong. From the beginning Eugene was ambitious about his companyand by 1912 the brands were found in Holland, Austria and Italy. In afew years the company was distributed US, South America, Russia andFar East. Today, L’Oréal is present worldwide through its subsidiariesand agents. L’Oréal started out in hair color business but soon branchedout into other cleansing/beauty products.L’Oreal’s century long history is marked with successes. Today the 500brands of L’Oréal provide diverse products from hair color, permanents,styling aids, body and skin care, cleansers and fragrances.
ProductsBECAUSE YOURE WORTH ITThe French brand, LOréal, one of the worlds top beauty care brands, offers men and women onevery continent beauty and personal care products that incorporate the latest scientific advances.Visionary formulas, upscale presentation and products that are a pleasure to use: LOréalprovides affordable luxury for people who demand excellence.The Product Categories1. Consumer productsThe Consumer Products Division is dedicated to offering all consumers its hightechnology products at competitive prices through mass-market retailing channels.The Division’s brands develop hair care, skincare, make-up and perfume productsthat meet the aspiration of all of its customers.The Divisions 5 international brands are LOréal Paris, Garnier, Maybelline NewYork, Soft sheen.2. Professional productsThe Professional Products Division is at the service of hairdressers worldwide. Ourcomplementary brands meet the requirements of salon professionals in colorants,hair care, texturing and styling formulas and provide salon customers with a widerange of innovative, high-performance products. The Professional ProductsDivision of L’Oréal is made up of four different brands: LOréal Professionnel,Kérastase, Redken 5th Avenue NYC and Matrix.3. Luxury productsThe prestigious brands of the Luxury Products Division offer consumers top of therange products. Clients of selective retail outlets (department stores, perfumeries,travel retail outlets, and the brands own boutiques) receive personalized advice atthe point of sale, enabling them to choose the products best suited to their needs.Lancôme, Helena Rubinstein, Biotherm, Shu uemura and Kiehl’s offer premiumproducts known for their innovation, performance and quality. The LuxuryProducts division houses also some of the worlds top perfume brands: GiorgioArmani, Ralph Lauren, Cacharel, Paloma Picasso and Guy Laroche.
3.Active cosmeticsThe Active Cosmetics Department designs and markets dermo-cosmetic skin careproducts that are sold in pharmacies and specialist retailers. These products offerconsumers proven safety and effectiveness supported by advice from pharmacists&dermatologists.The Department’s three brands, Vichy, La Roche Posay and Innéov, offer skincare, sun care, and hair care and make-up products.L’Oréal SWOT AnalysisStrengths:1. Continuing research and innovation in the interest of beauty which assures thatthe L’Oreal Cosmetics offers the best to their consumers.2. Leader in the growing cosmetics industry despite the competition in the market.3. High-end advertising which adapts to the culture of target audience4. Has over 60,000 employees globally5.Apart from hair color, skin care, sun protection, make-up, perfumes and haircare, the company is active in the dermatological and pharmaceutical fields and isthe top nanotechnology patent-holder in the United States6. L’Oréal has operations in over 130 countries and over 4o manufacturing plantsWeaknesses:1. Decentralized organizational structure. Due to the many subdivisions of theCompany, there is also the difficulty in the control of L’Oreal2.Stiff competition from other leading cosmetic established brands.Opportunities:1. Growing market that ranges from the affluent, the aging and also the masses ofthe developed countries.2. Greater market share because of the numerous patents registered by theCompany.
Threats:1. Growing competition within the field of cosmetic brands2. Economic downturn that is quite evident in other countries3. L’Oreal Group may be producing the best of its line, people may find that theirproducts are not of their basic needs and would skip buying L’Oreal products.ConclusionL’Oreal’s core business is people’s well being, and their ambitions go far beyondfinancial performance.The Group has confirmed its determination to link economic growth with strongethical principles and a real awareness of its responsibilities to the community.