This resource provides an overview of the following Visual Resume components:
1. L'Oreal Company Overview
2. A Look at the Company's Acquisitions
3. Evaluation of L'Oreal's Current State
4. Key Takeaways
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9. “Invest in all countries to diversify risks”
Innovation, Quality, and Globalization
International acquisitions Economies of scale with worldwide brands
Business
Model
Characteristics of wholesale with incorporations of other models
10. S W
O T- R & D
- Demand for organics
- Branding and adaptation
- Identifying acquisitions
- Well-rounded brand portfolio
- Too many subdivisions
- Brand image adjustment
- Slow internal process
- Constant trends
- Cash between brands
SWOT
Analysis
SWOT Analysis
SWOT
Analysis
11. “The success of our company is built on our technology,
our ability to make technical improvements to product. This
was revolutionary…We sell the science of beauty in a jar”
12. Keys to
Success
Acquire local brands
Larger distribution chain
Product diversification
Keys to Success
Keys to
Success
15. Effects
More complementary
hair care products with
an organic positioning
Allowed more access
to luxury products
Distribution into salons,
increasing revenue &
profits by 18%
Garnier Lancôme Redken
Mininurse
Expanded portfolio to
focus on men
Positioned
L'Oréal in China
Diesel
18. Then vs. Now
1909 2018
Paris-focused beauty
Weak American presence
Hair-care products
Over 150 countries
34 brands
Only true beauty company
19. 1995 2018
Company with no real image
Confused consumer outlook
Perceived as an older brand
Little global appeal
Strong youth brand
Bold and vibrant products
Revived famous tagline
Increased sales by 93%
Then vs. Now
20. 2000 2018
New York based only
Limited distribution
Couldn’t keep up with demand
Global stores
Online presence
Meets high demand
Then vs. Now
21. Target
Markets
Ages 25 - 40 and 60 - 65
Elegant with above average pricing
Ages 25 - 40
Young professional women and beauticians
Youthful and affordable
Niche market: Men and Women,
Upper middle class with high end products
Target Markets
22. Responsiveness
4 to 5% 23%40%Annual growth of beauty marketof worldwide cosmetic growth
L’Oreal sticks to roots of French beauty
Acquisitions used to penetrate new markets
Depending on the brand, responsiveness is different
Kiehl’s, Maybelline, Redken, and Matrix use varying styles
Responsiveness
23. “Imagine that each brand is a box…Our managers around the
world know that they can’t play with the position of the
brands. We don’t play with the boxes. The trick is to do
innovative things inside of each box”
24. Responsiveness
Responsiveness
French beauty didn’t
resonate to American
beauty
Without tampering L’Oreal’s
brand and changing to
American beauty they were
able to purchase Maybelline
and Licensed Cosmair to
penetrate U.S markets
Japanese research
showed the need for wet
lipstick
Took feedback from current
product, reworked it and
developed with U.S market
Sold 1 million in first month
Offered in Great Britain,
Spain and Russia, success
followed in France 1-3
lipstick sold
Kiehl’s had high demand
outside of New York
Potential as a “calve” to
make it a global luxury
brand desired world-wide
Curb side appeal
In cities, doctors, journalists
25. Responsiveness
Responsiveness
L’Oreal purchases Soft Sheen at 35% market share
Created a multi-million dollar research facility dedicated to African-American decent
3x $1.214%
Spent by African-Americans
on hair care
billion spent on Soft
Sheen purchases
of US population identifies as
African-American
26. GlobalizationGlobalization
Internal growth is
always in mind
Acquisitions Strategic or tactical?
Acquire local markets,
convert local brand with
established brand
18 month process of
converting merchandise,
packaging and advertising
Managers view acquisitions
as either cows or calves
Medium to long-term goals
trump short-term profits
Strategic – global potential in
their own
Tactical – ability to fill gaps in
existing products and could be
used for local-markets