L’Oreal is an international leader in the beauty industry whose self-proclaimed mission is to ‘invent beauty’ and offer everyone access to the best of cosmetics in terms of quality, effi¬cacy and safety. The world’s largest cosmetics and Beauty Company was founded in 1909.

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Thinks of cosmetics & hair color, and ‘L'Oréal Paris’is the brand which first stuck into our mind.L’Oreal
is an international leader in the beauty industry whose self-proclaimed mission is to ‘invent beauty’ and
offer everyone access to the best of cosmetics in terms of quality, efficacy and safety. The world’s largest
cosmetics and Beauty Company was founded in 1909. The company is always recognized for
cosmetology and dermatology research.
The group company was formed with the unique invention of the hair dye formula,which doesn’t damage
the hair, by EugèneSchueller. The French company headquartered in Clichy, Hauts-de-Seine and has a
registered office in Paris. Currently Jean-Paul Agon is chairman & CEO of L’Oreal.Loreal’s each
business unit is autonomous and operates with a different business model and with its own specific
profitability logic.
Key figures
In 2014, Loreal alone had a brand value of US$ 10,766, with which it globally ranked first as most
valuable cosmetic brand. They registered 624 patents in 2013. Theycurrently hold 35,000 patents and
spend almost twice the industry standard on research & development. In 2014, they accounted for an
operating profit of €3.89 billion against sales of €22.54 billion. The operating profit grown 3.5% as
compared to previous fiscal year and stands out for 17.3% of the current sales.L'Oréalis operating in 130
countries in the world.

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Different line of Brands
L'Oréalis the only cosmetics company in the world to own more than one brand franchise and have a
presence in all the distribution channels of the industry. They have over 500 productsout of which 28 are
international brands. Their brands concentrate on hair color, skin color, sun protection,makeup,
perfumes and hair color. The Brands are generally categorized by their targeted markets, such as the
mass, professional, luxury, and active cosmetics markets. The Body Shop and Galderma are directly
attached to the head office. Inspite of having extensive brands under one group these all brands are unique
in their own way. They acquired many brands as their strategic move to conquer different markets
worldwide, but always retained the originality of the acquired brand.
Consumer Products Division
The Consumer Products Division offers the best cosmetics at an affordable price. Its brandsare available
in mass-market channels(hypermarkets, supermarkets, drugstoresand traditional stores). The division is
the spearheadof the group’s quest to win over a further billion consumers.
L’Oreal Luxe
This division provides an array of prestigiousand modern international brands witha unique heritage. The
brands of L’OréalLuxestrive to promote the different specialtiesof luxury beauty: skincare, make-up and
fragrances.They also set out to offer high-quality productsthrough a selective distribution channel,and
provide excellent service that respectsthe diversity of its consumers.
Professional Products Division
The Professional Products Division are available specially for beauty salons. With the help of these range
of products, consumerscan take advantage of the highest standards of quality and expertise from beauty
salon professionals all over the world.
Active Consumer Division
The Active Cosmetics Divisionsare meant to improve the quality and health of the skin, whether they are
affected by sensitive skin or dermatological conditions. They are available in all healthcare channels
worldwide, including pharmacies, drugstores and medi-spas. Due to its highly complementary brands and
its close links with health professionals, dermatologists, pediatricians and doctors practicing aesthetic
medicine, the division is world No.1 in dermocosmetics.
L’Oréal Paris Garnier Maybelline New York Softsheen Carson NYC
Lancome Giorgio Armani Kiehl’s Diesel Paloma Picasso
L’OréalProfessionnel Kérastase Redken Matrix MizaniPureology
Vichy La Roche-Posay SkinCeuticals Roger &GalletSanoflore

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Strategic Acquisitions& Agreements
Giorgio Armani:
In the early 1980s the Giorgio Armani signed an important agreement with L'Oréalto create perfumes.
Maybelline:
Loreal group acquired Maybelline in 1996 for $758 million. It was one of the first brands that the group
bought as their strategic move to gains a greater presence in American mass market. Lorealretained
Maybellin’s American image and also helped the brand to expand globally.
The Body Shop:
The Company bought Body Shop for £652 million in March 2006. The deal was the step taken by
L’Orealto increase their presence in the ‘masstige’ sector (mass market combined with prestige), which
Body Shop has worked hard to exploit over the last four years. After the acquisition, Body Shop brand
was retained and the company continued to be based in and run independently from the UK.
Matrix:
Matrix Essentials, founded by Arnie Miller in 1980 was acquired by L'Orealin 2000.
Vogue:
Vogue was an important acquisition for Loreal Colombia which took place in 2013, consolidating its
presence in this highly competitive market. The brand offers development opportunities outside its
country of origin, particularly in Central America, Ecuador and Peru.

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Magic Holdings:
The Company Magic Holdings, whose brand MG is one of the Chinese leaders in cosmetic facial masks
was also acquired by Loreal in 2013. As part of the Consumer Products division, Magic Holdings helped
the group to conquer new consumers in the strategic Chinese market.
Interbeauty:
The acquisition of Interbeauty, a major player in the Kenyan beauty market, is a step to extend the
accessibility of the Consumer Products division. Based in Nairobi, its production platform underpinned
the development of the group’s activities in eastern Africa.
Cheryl’s Cosmeceuticals:
L’Oréal’s first acquisition in India, Cheryl’s Cosmeceuticals is a trailblazer in professional skincare and
beauty salon treatment nationwide. Its skincare services and products extended the offering of the
Professional Products division in India.
NYC Cosmetics:
L’Oréal’s latest acquisition of Los Angeles based NYX Cosmetics, provides the beauty powerhouse with
a mass brand with an edgy makeup artist appeal.
Business Model
L’Oréalis present across all distribution networks: mass market, department stores,pharmacies and
drugstores, travel retail and branded retail.L’Oréal’s new sustainability commitment for 2020 “Sharing
beauty with all” sets out ambitious sustainable development objectives across the Group’s value chain.
There are four key aspects of their beauty business model

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1. Universal
At L’Oreal, operations, HR,marketing and sales approaches are designed to support universalization.
They maintain global brand fairness across countries. They foster local developments and adapt to local
distribution. Their daily challenges are to develop supreme knowledge of their consumers, to develop
geo-cosmetics science,to identify geo-cosmetics science, to identify local ideas with global potential and
to conquer new territories.As per them, new markets account for 38.3% of their annual sales.
2. Innovative
Its seems innovation is in the DNA of the company. The company structures itself to foster innovation.
For this, they created regional hubs in key markets for Research & Innovation, Marketing Development
and Operations to facilitate local innovation and inspire global innovation. A dedicated research team of
4,000 people are at the core of L’Oréal’s strategy,working to meet beauty aspirations all over the world
and attract one billion new consumers in the years to come.
Packaging at the heart Innovation:
L’Oréalsays packaging is at the heart of innovation. According to the beauty leader, its packaging and
development teams are true partners for the brands in designing innovative launch plans. Team expertise
says, L’Oréal,has brought products to the market faster,and contributed to the success of major
innovative launches, such as Préférence Mousse Absolue by L’OréalParis, an aerosol cream hair
colorant, and the La Roche-PosayLipikar tube, with a 40% reduction in plastic, which won the Point Vert
award from ÉcoEmballages.
Online Approach:
Fast company.com has placed L’Orealinto list of most innovative companies of 2015 list. Trying on
makeup is key to getting the right look, but it can be super time-consuming to sit there while you get your
makeup done. L'OréalParis understands this frustration, which is why they've developed a new app that
will literally change the way you try on makeup. The cosmetics giant L’Oréalis smartly investing in a
future. Last June, L’Oréal's US-based tech lab launched its first product, an app called Makeup Genius. It
offers you an instant makeover using real products and realinspiration. The app uses one-of-a-kind
technology that recognizes your facial characteristics to ensure a seamless virtual makeup application
experience. This technology is truly unique "Seeing is believing," says GuiveBalooch, Global VP of
L’Oréal’s Connected Beauty Incubator. Consumers downloaded the app more than 1.4 million
times.L’Oréal has a staff of 400 people who post content on Facebook every day, according to Marc
Menesguen, the company’s chief marketing officer.
3. Nimble
Beauty is a fast moving business. Trends change quickly. Socompany tries to adapt and be proactive in all
fields: research,manufacturing, sales, marketing, HR. At L’Oréalthey always lookout for new
opportunities: new products, categories, markets, distribution & e-business.
4. Entrepreneurial
To be high performing and nimble, different brands are well organized for each section of consumers.
L’Oréal’s uniqueness is to cover all channels of distribution, all beauty categories and all consumer
segments, with dedicated brands. Each business unit is autonomous and operates with a different business

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model and with its own specific profitability logic.They pursue an ambitious, selective acquisition
strategy, concentrating on culturally diverse brands with international potential.
L'Orealuses brand segmentation to drive growth
L'Oréal has a well segmented portfolio operating across different pricing tiers. This has helped L'Oréal
to drive sales growth at economically challenging times. They operate strict brand segmentation across its
portfolio to retain its exclusive brand identity. For each of its brands the company maintains distinct
retailing channels to keep its brand image intact. For premium products e-retailing or selling through
branded retails are done, for professional division products are available in the loreal salons and consumer
division products are available through all channels like drug store, department store, e-retails etc.
Awards& Recognitions
 Due their focus on research,active consumer division of brands isWorld’s No.1 in
dermocosmetics.
 'Global Corporate Achievement Award 2002’ for L’OrealEurope by 'The Economist Group.'
 Ranked 1st
among Top Global Beauty Companies of 2013 (FY ’14) in terms of sales.
 In terms of brand value too, Loreal leads the Position, having brand value of about $10.76
billion of L’Orealalone excluding its subsidiaries.
 Loreal is the brand which have been awarded AAA+ brand rating, confirming their strength
and future potential as well as demonstrating that they’re well and truly one to watch.
In mass-market cosmetics business, ‘Revlon’ poses great threat to Loreal. Apart from it, Avon makeup
products; P&G’s Pantene,Olay, Cover Girl are tough competitors for Loreal. Unilever’s salon range like
Tresemme always posed a great competition to LOrealprofessional division of brands.
The Loreal have an ambition of reinforcingtheir positions in all regions of the world.They will achive this
by responding to the emergence of middle classes all over the planet who are eager for modern, high-
quality beauty products will be meet soon. They always aspire to win the trust of the consumers and civil
society by being an exemplary company.by keeping these aspirations and having a strategic business
model they expanded and are expanded more day by day.Apart from all this, where loreal is lacking is
that they has no presence in oral care and is a small player in bath and shower.

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Ref:
http://www.fastcompany.com/3039614/most-innovative-companies-2015/loreal
http://www.loreal-finance.com/eng/news-release/2014-annual-results-992.htm
http://loreal-dam-front-resources-corp-en-cdn.brainsonic.com/ressources/afile/119223-29baa-resource-
2013-annuals-results.html
http://www.independent.co.uk/news/business/news/loreal-buys-body-shop-for-pound652m-470244.html
http://www.beautypackaging.com/heaps/view/1200/1/173767
http://www.rankingthebrands.com/The-Brand-Rankings.aspx?rankingID=196&nav=industry
http://www.hillandknowlton.co.uk/bandg-preen/posts/2014/april/28/the-top-50-global-beauty-brands-of-
2014.aspx
http://www.nytimes.com/1995/12/11/business/l-oreal-to-buy-maybelline-in-cash-deal.html
http://www.icmrindia.org/casestudies/catalogue/Marketing/LOreal-Marketing%20Case1.htm