Lorean Case Study dnd

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Lorean Case Study dnd

  1. 1. MARKET SURVEY REPORT ON CUSTOMER SATISFACTION ON INPARTIAL FULFILLMENT OF DEGREE OF BACHELOR OF BUSINESS ADMINISTRATION M.J.P.R.U, BAREILLY (SESSION: 2010-2011) SUBMITTED TO: SUBMITTED BY: Mrs. Sandhya Tripathi Pragati Dixit IIMS Faculty BBA-VI sem-C 915584
  2. 2. CONTENTS: 1. INTRODUCTION 2. OBJECTIVES 3. RESEARCH METHODOLOGY 4. COMPANY PROFILE 5. LITERATURE REVIEW 6. DATA PRESENTATION AND ANALYSIS 7. FINDINGS 8. CONCLUSION 9. LIMITATIONS 10. RECOMMENDATION 11. BIBLIOGRAPHY 12. ANNEXURE
  3. 3. INTRODUCTION
  4. 4. INTRODUCTION: L’Oreal is the global leader in cosmetics, with 25 brands. They have 5 key areas of expertise − hair care, hair colorants, skincare, make-up and fragrances. There is a huge motive behind the study of L’Oreal. The study will help us to understand the operations which are carried out by L’Oreal. The operations such as marketing strategies, business plans, company at a glance, business structure, management and operating structures , competitors position as per this company, business development, discussion of business strategies, SWOT analysis to understand the different pros and cons of the company, so as to report properly to operate effectively and deal smartly. This study offers a comprehensive analysis of the organization, its business segments, and competitors. It analyzes the business and marketing strategies adopted by the company, to gain a competitive edge in the industry. The profile also evaluates the strengths of the company and the opportunities present in the market. This study presents the key facts & figures, business description, products & services offered and corporate timeline of the company. It involves analysis of the company at three levels – segments, organizational structure and ownership composition. Both business and geographic segments are analyzed along with their recent financial performance. It further discusses the major subsidiaries of the company and the recent merger & acquisitions. It also examines the significant developments and milestone that have taken place in the company. It is a form of news analysis where the most critical company news is discussed. Also the factor Financial Performance included in this study. It discusses the most recent financials of the company and also compares the historical sales & income figures with the current and projected figures. The objective is to evaluate the financial health of the company. The analyst opinion and stock performance help anyone in evaluating the performance of the company from an investor’s viewpoint.
  5. 5. The L’Oreal Group is the world's largest cosmetics and beauty company and is headquartered in the Paris suburb of Clichy, Hauts-de-Seine, France. L’Oreal has developed activities in the field of cosmetics, concentrating on hair color, skin care, sun protection, make-up, perfumes and hair care. L’Oreal is active in the dermatological and pharmaceutical fields. L’Oreal is also the top nanotechnology patent-holder in the United States. L’Oreal is a listed company, but the founder's daughter Liliane Bettencourt and the Swiss food company Nestlé each control over a quarter of the shares and voting rights. The company's international brands include: Anais Anais, ARTec, BioMedic, Biotherm, Cacharel, Dermablend, Drakkar Noir, Garnier, Giorgio Armani Parfums and Cosmetics, Kerastase, Kiehl's Since 1851, La Roche-Posay, Lanc¥me, L'Oreal Paris, L'Oreal Professionnel, L'Oreal Technique, Matrix, Maybelline New York, Paloma Picasso, Ralph Lauren Fragrances, Redken 5th Avenue NYC, Shu Uemura, SkinCeuticals, SoftSheenCarson, Vichy, Viktor&Rolf. The company was originally founded in 1953 as Cosmair, Inc as the exclusive U.S. licensee of the L'Oreal Group. In 1972, L'Oreal unveiled the first TV ads for the "I'm Worth It" campaign for Preference haircolor which would help boost sales.The company's acquisitions have led to significant growth which include: Redken in 1993, Maybelline in 1996, Soft Sheen in 1998, Matrix, Kiehl's and Carson in 2000, ARTec in 2002 and SkinCeuticals in 2005. Cosmair would become a wholly owned subsidiary of L'Oreal SA Paris in 1994 L'Oréal India L’Oréal India Private Limited is a wholly owned subsidiary of L’Oréal S.A. Headquartered in Paris, L’ORÉAL is the global leader in cosmetics with 5 key expertise in hair care, hair color, skin care, make-up and fragrances. L’Oréal’s leadership is achieved through cutting-edge technology with a portfolio of well-known brands that answer all beauty needs and are distributed in all channels. Each brand benefits from considerable investments in research made by the L'Oréal Group. The Group's research efforts, unique in the beauty industry, permit each brand to benefit from formulas specifically adapted to the needs of men and women worldwide, within each market or distribution circuit that is present. L'Oréal India has over 600 employees and has a strong track record with consistent double digit sales growth yearly.
  6. 6. In the year 1907, Eugene Schuller , a young French chemist, developed an innovative hair-colour formula. He called his improved hair dye AUREOLE. With that the history of LOREAL began. Eugene Schuller formulated and manufactured his own products, which he then sold to parsian hairdressers. In 1909, Schuller registerd his company, the Société Française de Teintures inoffensive pour Cheveux (“safe hair dye company of france “), The future Loreal . The guiding principals of the company that would become Loreal were put into place from the start: research and innovation in the intrest of beauty. During the early twentieth century, Schuller provided financial support and held meetings to La Cagoule at loreal headquarters. La Cagoule was a violent French fascist-leaning and anticommunist group. Loreal hired several members of group as executives after world war II. In 1920,the small company employed only three chemist . by 1950, the research teams were 100 strong ; that number reached 1000 by 1984 and is nearly 2000 today. Loreal got
  7. 7. its start in the hair-color business , but the company soon branched out into other cleansing and beauty products. Loreal now markets over 500 brands and many thousands of individual products in all sectors of the beauty business ; hair color , permanents , styling aids ,body and skin care ,cleansers and fragrances. They are found in all distribution channels, from hair-salons and perfumeries to hyper –and supermarkets, health/beauty outlets, pharmacies and direct mail. Loreal have five worldwide reaserch and development centers ; two in france ; Aulnay and Chevilly ; one in U.S clark, new jersey; one in japan; Kawasaki ,kanagawa prefecture; and in 2005 , one was established in china ,shanghai . LOreal purchased synthelbo in 1973 to pursue its ambitions in the pharmaceutical field. synthelabo merged with sanofi 1999 to become sanofi-aventis. On 17 march 2006 loreal made a £652 million agreed takeover of ethical cosmetics company THE BODY SHOP. The company has recently faced discrimination lawsuits in france related to the hiring of spokesmodels. In the uk loreal has faced widespread condemnation from OFCOM regarding truth in their advertising and marketing campaigns concerning the product performance of their mascara brand. Multiple video parodies of their advertising campaigns have spoofed their products and can be viewed on You Tube- search LUNREAL for links to content. Loreals history has just been exposed in a best seller by MONICA WAITZFELDER published in france as “loreal a pris ma maison” and English as “loreal stole my home”. The book details how loreal, a notoriously anti-semitic company historically , took over the Waitzfelder home in german city of karlsruhe (after the Nazis had engineered the removal of the family) to make it its german headquarters. Waitzfelder has run a lifelong battle through the French courts to try ti get compensation — the case is now to come before the European Courts Of Human Rights .
  8. 8. Loreal’s famous advertising slogan is “Because I’m worth it”. It has recently been replaced by “Because you’re worth it”. Loreal owns a hair and body products line for kids called LOREAL KIDS. Their slogan is “Because we’re worth it too”, which is very similar to that of its parent .Loreal still tests new ingredients on animals ,which has led to criticism from Naturewatch Compassionate Shopping. 1400 new formulations have been registered in the last three years. In 1987 loreal and 3 Suisses founded “le club des createurs de beaute”. Specializing in mail order sales of cosmetic products. Following loreals purchase of THE BODY SHOP, who previously were against animal testing, The Body Shop founder Dame Anita Roddick was forced to defend herself against allegations of abandoning her principles over loreal ‘s track record on animal testing. As a result, calls were made for shoppers to boycott The Body Shop. GARNIER is a mass market brand of loreal that produces hair care products, including the Fructis line, as well as skin care products, notably the newer Nutritioniste line. One of their key proprietary ingredients is a fruit concentrate used in all their products. It is a combination of fruit acids, vitamin B3 and B6, fructose and glucose.
  9. 9. OBJECTIVES
  10. 10. OBJECTIVES: • The main objective behind the study of this project is to evaluate the distribution channel for L’Oreal Paris Company. • How the L’Oreal Paris company emphasis more on customers service. • How L’Oreal value the time in their process of work. • How the L’Oreal have segmented the market in different directions. • How the company is growing by the time As required by the objectives of the project report, I started working accordingly, getting the details of the topic, from different sources and under the guidance of my project guide, to get desired results and applied my energy towards the formation of this project.
  11. 11. RESEARCH METHODOLOGY
  12. 12. RESEARCH METHODOLOGY: RESEARCH DESIGN A Research Design is the framework or plan for a study which is used as a guide in collecting and analyzing the data collected. It is the blue print that is followed in completing the study. The basic objective of research cannot be attained without a proper research design. It specifies the methods and procedures for acquiring the information needed to conduct the research effectively. It is the overall operational pattern of the project that stipulates what information needs to be collected, from which sources and by what methods. Research is process of a systematic enquiry into facts and in depth study of probing into a particular topic or subject, backed by the collection, complication, presentation and interpretation of relevant data. It is an intelligent and scientific work, which is an Endeavour to discover valuable facts. Research must be based on the facts. Observable data forms a sound basis for research. Inductive investigation leads greater support to research findings, for analyzing facts, a scientific methodology of analysis must be developed and result interpreted logically. Following steps are undertaken to conduct this research:1. Selection of the subject. 2. Objectives of the study. 3. Collection of data.
  13. 13. 4. Analyzing the data. 5. Title of the project. TYPE OF DATA COLLECTED:There are two types of data used. They are primary and secondary data. Primary data is defined as data that is collected from original sources for a specific purpose. Secondary data is data collected from indirect sources. These include books, the internet, company brochures, product brochures, the company website, competitor’s websites etc, newspaper articles etc. The data is like heart of all types of research. This collection of data depends upon the purpose for which the data is required .it is considered to be very important steps as it is the basis of foundation of investigation. a) Primary data:It is the data collected by a person for his own use obtained from the findings. This is considered to be the first hand information. These are those data which are collected by us to meet our own specific purpose. The methods which are adopted for collecting primary data for the purpose of this project report are as follows:- i) Data through questionnaireA questionnaire has been prepared and filled by the female customer who uses products of L’Oreal by doing market survey.
  14. 14. ii) Personal interviews:A direct personal interview of several users has been taken. Their views were taken regarding the quality of the products which satisfy them by fulfilling there requirements. Other methods which are adopted for collecting primary data to complete this project report are-  Direct personal observation , and ,  Indirect oral investigation. b) Secondary data:It is the data which is collected by some other person or the organization itself for their own use, but, this type of data/information can also be used by the researchers for his use as second hand information. Sources through which secondary data for this project report are collected by journals, magazines and internet. • After gathering all the required information I decided to go in for this project as this project would give me the practical experience and also provide me with an opportunity to work on a subject of my interest.
  15. 15. COMPANY PROFILE
  16. 16. Company Profile: The L’Oreal Group is the world's largest cosmetics and beauty company. With its registered office in Paris and head office in the Paris suburb of Cliché, Haunts-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 in the dermatological and pharmaceutical fields and is the top nanotechnology patent-holder in the United States. L’Oreal is a listed company, but the founder's daughter Lillian Bettencourt and the Swiss food company Nestlé each control over a quarter of the shares and voting rights. History: In 1907, Eugene Schuler, a young French chemist, developed a hair dye formula called Aureole. Schuler formulated and manufactured his own products, which he then sold to Parisian hairdressers. In 1909, Schuler registered his company, the Society Francoise de Tinctures Inoffensive pour Cheveux ("Safe Hair Dye Company of France" literally "French Society of Inoffensive Hair Dyes"), the original L’Oreal. The guiding principles of the company, which eventually became L’Oreal, were research and innovation in the field of beauty. In 1920, the small company employed three chemists. By 1950, the research teams were 100 strong; that number reached 1,000 by 1984 and is nearly 2,000 today. L’Oreal got its start in the hair-color business, but the company soon branched out into other cleansing and beauty products. L’Oreal currently markets over 500 brands and many thousands of individual products in all sectors of the beauty business: hair color, permanents, hair styling, body and skin care, cleansers, makeup and fragrances. The company's products are found in a wide variety of distribution channels, from hair salons and perfumeries to hyper - and supermarkets, health/beauty outlets, pharmacies and direct mail. L’Oreal has five worldwide research and development centers: two in France: Almay and Coevally; one in the U.S.: Clark, New Jersey; one in Japan: Kawasaki, Kanagawa Prefecture; and in 2005, one was established in Shanghai, China. A future facility in the US will be in Berkeley Heights, New Jersey. From 1988 to 1989, L’Oreal controlled the film company Para vision, whose properties included the Filiations and De Laureates libraries. Studio Canal acquired the Para vision properties in 1994.
  17. 17. L’Oreal purchased Synthélabo in 1973 to pursue its ambitions in the pharmaceutical field. Synthélabo merged with Sanofi in 1999 to become Sanofi-Synthélabo. SanofiSynthélabo merged with Aventis in 2004 to become Sanofi-Aventis. On 17 March 2006, L’Oreal purchased cosmetics company The Body Shop for £652 million. The company has recently faced discrimination lawsuits in France related to the hiring of spokes models and Institutional racism. In the UK, L’Oreal has faced widespread condemnation from OFCOM regarding truth in their advertising and marketing campaigns concerning the product performance of one of their mascara brands. A book by Monica Waitsfield, published in French as L’Oreal a prism ma malison and in English as L’Oreal stole my house!, details how L’Oreal, a company claimed to be antiSemitic by the author, took over the Waitsfield home in the German city of Karlsruhe (after the Nazis had engineered the removal of the family) to make it its German headquarters. L’Oreal’s famous advertising slogan is "Because I'm worth it". In the mid 2000s, this was replaced by "Because you're worth it". In late 2009, the slogan was changed again to "Because we're worth it" following motivation analysis and work into consumer psychology of Dr. Maxim Titorenko. The shift to "we" was made to create stronger consumer involvement in L’Oreal philosophy and lifestyle and provide more consumer satisfaction with L’Oreal products. L’Oreal also owns a Hair and Body products line for kids called L’Oreal Kids, the slogan for which is "Because we're worth it too". Protest group Nature watch states that L’Oreal continues to test new ingredients on animals. The company states that no animal testing for finished products has taken place since 1989 and that L'Oreal has invested significantly in alternative methods for chemical safety testing, though they implicitly acknowledge that they continue to perform animal testing of ingredients. Following L’Oreal’s purchase of The Body Shop, who continue to be against animal testing, The Body Shop founder Dame Anita Riddick was forced to defend herself against allegations of abandoning her principles over L’Oreal’s track record on animal testing. She declared that her belief in the power of cosmetics to enhance female beauty was greater than any concern over animal testing. As a result, calls were made for shoppers to boycott The Body Shop. In 1987, L’Oreal and 3 Suisse’s founded Le Club des Creatures de Beauty specializing in mail order sales of cosmetic products. February 2011: L'Oreal will has the largest factory in the Jababeka Industrial Park, Cikarang, Indonesia with total investment of US$50 million and it will be ready in October 2011. The production will be absorbed 25 percent by domestic market and the
  18. 18. rest will be exported. In 2010 significant growth occurred at Indonesia with 61 percent increase of unit sales or 28 percent of net sales. Business Corporate governance Board of directors Current members of the board of directors of L’Oreal are: Jean-Paul Argon, Francisco Basco, Werner Bauer, Liliane Bettencourt, Françoise Bettencourt Meyers, Peter BrabeckLetmathe, Charles-Henri Filippi, Xavier Fontenot, Bernard Kasriel, Marc Latherier, JeanPierre Meyers, Lindsay Owen-Jones, Franck Rebound, Annette Roux and Louis Schweitzer. Management committee The management committee includes: • • Jean-Paul Argon, Chief Executive Officer Frederic Roze, Chief Executive Officer, L’Oreal USA • Béatrice Dautresme, EVP of Corporate Communications • Jean-François Grollier, EVP of Research and Development • Christian Mulliez, EVP of Finances • Jean-Jacques Lebel, President of Consumer Products • Nicolas Hieronimus, President of Professional Products • Geoff Skingsley, EVP of Human Resources • Marc Menesguen, President of Luxury Products Stockholders As at year end 2009: • Breakdown of share ownership: 31.0% by the Bettencourt family, 29.8% by Nestlé, 2.4% treasury shares, and the remaining 36.8% is public Sales, profits, etc. In 2003, L’Oréal announced its 19th consecutive year of double-digit growth. Its consolidated sales was €14.029 bn and net profit was €1.653 bn. 96.7% of sales derived from cosmetic activities and 2.5% from dermatological activities. L’Oréal has operations in over 130 countries, employing 50,500 people, 24% of which work in France. 3.3% of
  19. 19. consolidated sales is invested in research and development, which accounts for 2,900 of its employees. In 2003, it applied for 515 patents. It operates 42 manufacturing plants throughout the world, which employ 14,000 people. • Cosmetics sales by division breakdown: 54.8% from consumer products at €7.506 bn, 25.1% from luxury products at €3.441 bn, 13.9% from professional products at €1.9 bn, and 5.5% from active cosmetics at €0.749 bn. • Cosmetic sales by geographic zone breakdown: 52.7% from Western Europe at €7.221 bn, 27.6% from North America at €3.784 bn, 19.7% from rest of the world at €2.699 bn. In 2007, L’Oreal was ranked 353 in the Fortune Global 500. The company had earned $2,585 million on sales of $19,811 million. There were 60,850 employees. Joint ventures and minority interests L’Oreal holds 10.41% of the shares of Sanofi-Aventis, the world's number 3 and Europe's number 1 pharmaceutical company. The Laboratoires Innéov is a joint venture in nutritional cosmetics between L’Oréal and Nestlé; they draw on L’Oréal's knowledge in the fields of nutrition and food safety. Galderma is another joint venture in dermatology between L'Oréal and Nestlé. Community involvement and awards In 2008, L’Oreal was named Europe's top business employer by The European Student Barometer,a survey conducted by Trendence that covers 20 European countries and incorporates the responses of over 91,000 students. The L’Oreal-UNESCO Awards for Women in Science was established to improve the position of women in science by recognizing outstanding women researchers who have contributed to scientific progress. The awards are a result of a partnership between the French cosmetics company L’Oreal and the United Nations Educational, Scientific and Cultural Organization (UNESCO) and carry a grant of $100,000 USD for each laureate. The same partnership awards the UNESCO-L’Oreal International Fellowships, providing up to $40,000 USD in funding over two years to fifteen young women scientists engaged in exemplary and promising research projects. L’Oreal organizes every year the L’Oreal Brand storm, an acknowledged business game for students in 43 countries. The game is related to marketing and has a first prize of $10,000, a second prize of $5,000 and a third prize of $2500.
  20. 20. Claims of racial discrimination in advertising, and other litigation On August 11, 2005, the Supreme Court of California ruled that former L'Oréal sales manager Elyse Yanowitz had adequately pleaded a cause of action for retaliatory termination under the California Fair Employment and Housing Act, and remanded the case for trial.[13] The case arose out of a 1997 incident in which Jack Wiswall, then the general manager for designer fragrances, allegedly told Yanowitz to fire a dark-skinned sales associate despite the associate's good performance. When Yanowitz refused, Wiswall pointed to a "sexy" blonde-haired woman and said, "God damn it, get me one that looks like that." Wiswall retired as president of the luxury products division of L'Oréal USA at the end of 2006. In May 2007, L'Oréal was one of several cosmetic manufacturers ordered by the Therapeutic Goods Administration in Australia to withdraw advertising regarding the wrinkle removal capabilities of their products. In July 2007, the Garnier division and an external employment agency were fined €30,000 for recruitment practices that intentionally excluded non-white women from promoting its shampoo, "Fructis Style" L’Oreal is reported as saying the decision was "incomprehensible", and would challenge the measure in court. In July 2007, the British Advertising Standards Authority attacked L'Oréal for a television advert on its “Telescopic” mascara, featuring Penélope Cruz, stating "it will make your eyelashes 60% longer." In fact, it only made the lashes look 60% bigger, by separating and thickening at the roots and by thickening the tips of the lashes. They also failed to state that the model was wearing false eyelashes. Brands Brands are generally categorized by their targeted markets, such as the mass, professional, luxury, and active cosmetics markets. Garnier - L'Oreal's product, reached the top 100 brands of The Brand Trust Report published by Trust Research Advisory in India. Garnier was ranked in the 61st position in the list of Most Trusted brands of India. Head office L'Oréal Group has its head office in the Centre Eugène Schueller in Clichy, Hauts-deSeine, near Paris.[18] The building, constructed in the 1970s from brick and steel, replaced the former Monsavon factory, and employees moved into the facility in 1978. 1,400 employees work in the building. The building is often referred to as the "Beauty Factory" by the public. In 2005 Nils Klawitter of Der Spiegel said "the building, with its brown glazed façade of windows, is every bit as ugly as its neighborhood." Klawitter added that
  21. 21. the facility "gives the impression of a high-security zone" due to the CCTV cameras and security equipment. The world's largest hair salon is located inside the head office building. As of 2005, 90 hairdressers served 300 women, including retirees, students, and unemployed people, per day; the customers are used as test subjects for new hair colours. L'Oréal USA has its headquarters in New York City, its New Jersey headquarters is in Berkeley Heights. Centre Eugene Schuler, L’Oreal head office, in Cliché, France The names of the company’s top 25 brands are given below:1. LOREAL PROFESSIONEL PARIS. 2. KERASTASE PARIS. 3. MATRIX. 4. REDKEN 5TH AVENUE N Y C. 5. MIZANI. 6. LOREAL PARIS. 7. GARNIER. 8. MAYBELLINE NEW YORK. 9. SOFTSHEEN.CARSON.
  22. 22. 10. LANCOME PARIS. 11. BIOTHERM. 12. HR (HELENA RUBINSTEIN) 13. GIORGIO ARMANI PARFUMS. 14. DIESEL. 15. RALPH LAUREN. 16. CACHAREL. 17. KIEHL’S (SINCE 1851) 18. SHU UEMURA. 19. VIKTOR&ROLF. 20. VICHY (LABORATO I RES) 21. LA ROCHE-POSAY(LABORATOIRE PHARMACEUTIQUE) 22. INNEOV (NUTRICOSMETICS) 23. SKIN CEUTICALS. 24. SANOFLORE (LABORATOIRE RIE) 25. THE BODY SHOP. MOTTO:-
  23. 23. “AT THE DAWN OF THE 21ST CENTURY, THE WORLD’S LEADING BEAUTY COMPANY NEEDS TO BE AN AUTHENTIC EXAMPLE IN TERMS OF SUSTAINABLE DEVELOPMENT” VISION:2007 has been a year of progress on three objectives they set to ensure that loreal is among the most exemplary companies of the 21st century. The first priority is economic success, shared by all the employees, and to which they devote their talents, energy and commitment. The second objective is to make loreal a company where all employees thrive both personally and professionally, and where they are able to attract and retain the most talented individuals. They constantly strive to bring on board staff from different horizons, nationalities, ethics origins and backgrounds. The third is to ensure that as a company, loreal is seen as a “global citizen”. At the dawn of 21st century, the worlds leading company needs to be an authentic example in terms of sustainable development.
  24. 24. Progress:- • They were rated as one of the 100 most sustainable companies in the world by innovest and corporate knights in January 2008. • They were named as one of the world’s most ethical companies by Ethisphere magazine. • They appointed a worldwide director of ethics and launched their new code of business ethics. • They signed up to the French union of advertisers’ (UDA) charter on responsible communication to promote the positive impact of responsible corporate communication on society.
  25. 25. • The L’Oreal corporate foundation was created to fund education, science and solidarity initiatives, with a budget of €40 million over five years. • They continued to reduce the amount of waste, CO2 emission and water used, despite the growth. • They committed to action on climate change by signing up to the Bali communiqué , which called for a united nations framework to tackle climate change .they also joined the carbon disclosure project’s supply chain leadership programmed to work with suppliers on measuring their carbon emissions. • They got a step closer to eliminating animal testing with the approval by the EU of the skin irritation test on the Episkin model, and by the creation of a complete reconstructed living skin model (real skin). • Working together with the suppliers, the company assessed 10% of the raw material using their raw material sustainability assessment framework. • They set up natural and organic center of excellence to develop products, and integrated six raw materials resulting from fair trade into the portfolio. • CSR Europe, the leading European business network for CSR, identified the observatories of diversity and social cohension as good practice.
  26. 26. • They continue to monitor working conditions in the supply chain, with 585 social audits carried out at their suppliers and subcontractors factories Targets:In 2008, the company planed to continue with this progress, with targets including: • Reducing their total CO2 emissions by 2%, • Reducing waste by 5%, • Sourcing all papers and board used in packaging from sustainably managed forests, ideally FSC-certified.
  27. 27. Ethics:At loreal, they believe that lasting business is built upon high ethical standards which guide growth, and on a genuine sense of responsibility to the community at large. Governance of sustainability issues:- Loreal’s progress on sustainability is driven by a sustainable development steering committee, and this steering committee reports to the executive committee for sustainable development. The sustainable development steering committee works on a number of initiatives those are given as follows:-
  28. 28. • Raising awareness among employees of our sustainable development initiatives and performance, • Developing relationship with stakeholders, in particular, stronger relationship or partnerships with NGOs, • Further strengthening the work on diversity, • Incorporating sustainability principles into the business practices at all levels, the supply chain and raw material. New codes of business ethics:Loreal released a new worldwide code of business ethics in October 2007, which every member of staff received. Employees representing 22 nationalites were invited to attend international advisory panels to comment on the draft of the code. The code was reviewed by 50 internal experts and reviewed by each country manager. Embedding the new code of business ethics:Two new management competences have been integrated into loreal’s annual staff appraisal system: “leading with human sensitivity” and “achieving results with integrity”. An ethics module is being included into all the “Discovery” induction programmes and in loreal’s country managers seminars. Monitoring ethics:Country reporting ethics, an annual reporting system on ethical issues including prohibition of child and forced labour, discrimination, sexual and moral harassment and integrity, has been helping assess the groups performance
  29. 29. since 2005. 2008 results showed an increase in communication and training on the code of business ethics, in part due to the launch of the new code. Economic affairs :As an international business LOreal is committed to growth that creates more value for more people with a stake in their success. The values that underpin the core business will be crucial as they grow further. Growth and innovation:Growth was strong in 2008 across all division, as they each won market share in their respective distribution channels. The growth accelerated compared with 2007. in terms of innovation, there research teams made several major technological advances and set up two new laboratories. The first is for organic and natural cosmetics for the brands THE BODY SHOP and SANOFLORE, and the second is for instrumental cosmetics to “seize upcoming trends” in this promising area. A growing market: 2008 was also a strong year for external growth. After successfully integrating THE BODY SHOP, they started up the DIESEL fragrance business, and began to globalize SANOFLORE, there organic cosmetics brands. The world cosmetics market grew by +5% last year. Their share of this market rose substantially to 15.3%.significiant gains were made on all continents, particularly in emerging countries(such as Asia, Latin
  30. 30. America and Eastern Europe), which became for the first time the largest market , on a par with Western Europe. Thanks to the diversified catalogue centers, they are perfectly placed to take advantage of these exceptional growth prospects. The group’s growth is never at the expense of a responsible attitude: by manufacturing locally as soon as is practical, the company contribute to local economic development, applying the principles outlined in their code of business ethics. Supplier relations:L’Oreal is committed to building long-term partnerships with suppliers, based on mutual respect, transparency and sharing of information, strong communication and high standards.
  31. 31. 2007 key achievements:• Carrying out 585 independent audits on labour standards at the suppliers, subcontractors and traders’ production sites. • Working with stakeholders to develop a simplified code of conduct and labour standards toolbox. • Holding the annual supplier forum on the subject of diversity. Over 100 suppliers took part in the day long loreal “Together for diversity” convention, together with several institutions and NGOs specializing in diversity. • Joining the carbon disclosure project’s programme to encourage suppliers disclosure on carbon emissions. The 40 factories and 65 warehouses of the company manufacture and distribute products around the world and are at the center of a complex supply chain. This includes packaging, ingredients, industrial equipment, promotional items and indirect purchasing. They manufacture the vast majority of their own products, with only 6% being made by other companies. Loreal’s “purchasing code of ethics”:-
  32. 32. The purchasing department integrates Loreal’s fundamental values in all its dealing with suppliers. All buyers are notified of their commitment when they take on their position via the purchasing code of ethics, and undertake to respect all items in this code. In 2008, an updated version was disseminated to all the buyers. Internal communication:In 2007, loreal again held several internal events to raise awareness of their policy on labour standards, attended by the international quality, development and packaging teams, factory managers, administrative and operations managers and technical managers. L’Oreal supplier code of conduct and toolbox:L’Oreal believes that they should help their suppliers and their own supply chain by providing tools to help implement their labour standards. In 2007, they held workshops with NGOs, other key stakeholders and loreal departments to build a new type of code of conduct. This will set out their main requirements in simple terms, and also provides tools for self-training and case studies of best practice and failures. The final release is scheduled for October 2009.
  33. 33. The objectives of the company:- • Continue work to develop a loreal supplier code of conduct, for release in 2009. • Issue an updated version of loreal purchasing code of ethics. • Work with other companies on supply chain initiatives. • Hold further capacity building workshops for suppliers on labour standards and SH&E. • Continue work researching the root causes of supplier noncompliance with our labour standards. • Encourage environmental innovations by suppliers.
  34. 34. THE DIAGRAM OF LOREAL SUPPLY CHAIN:
  35. 35. PURCHASINGSUPPLY SUPPLIERS:RAW MATERIALS PACKAGING INDUSTREAL EQUIPMENT INDIRECT PURCHASING PROMOTIONAL ITEMS SALES MANUFACTURING LOREAL FACTORIES (40):- STORES:-
  36. 36. 94% OF THE FINESHED GOODS LOREAL WAREHOUSE (65) SUBCONTRACTORS:- PERFUME SHOPS DEPARTMENT STORES 6% OF THE FINESHED GOODS ETC LITERATURE REVIEW
  37. 37. WHAT IS LOREAL? L’Oreal is the global leader in cosmetics, with 25 global brands. It has five key areas of expertise- hair care, hair colourants, skincare, make-up and fragrances. This company has over 63,358 employees working currently. And it sells its products around in 130 countries all over the world. Its consolidated sales are recorded in over 17,063 in million euros. The company manufacture well above 4.7 billion units annually. It also has investments above 560 million euros in R&D investments
  38. 38. DATA PRESENTATION AND ANALYSIS
  39. 39. DATA ANALYSIS & INTERPRETATION 1. Do you use cosmetic? a) Yes b) No
  40. 40.  65% says- Yes and 35% says- No 2. Are you the L’Oreal customer? a) Yes b) No
  41. 41.  70% says- Yes and 30% says- No 3. a) b) c) d) Do you wear make-up? At parties Always When I want to Outside home
  42. 42. Make-up 45 40 35 30 25 20 15 10 5 0 at Parties Always when I want to Outside home  40% says- At parties, 20% says- Always, 30% says- When I want to and 10% says- Outside home. 4. How following face foundation have you used mostly? a) Lakme b) L’Oreal c) Avon d) Others
  43. 43. Face foundation 45 40 35 30 25 20 Loreal 15 10 5 0 lakme loreal avon others  25% says- Lakme, 40% says- L’Oreal, 15% says- Avon and 20% saysOthers. 5. Which is your Favorite face foundation? a) Lakme b) L’Oreal c) Avon d) Others
  44. 44. Favorite foundation 45 40 35 30 25 20 Loreal 15 10 5 0 lakme loreal avon others  25% says- Lakme, 40% says- L’Oreal, 25% says- Avon and 10% saysOthers. 6. What is your skin type? a) Rough b) Dry c) Smooth d) Oily e) Spotted
  45. 45.  15% has Rough, 25% has Dry, 30% has Smooth, 20% has Oily and 10% has spotted skin type. 7. How often do you use cream including night creams? a) Once a day b) Twice a day c) Twice in a week d) Three times in a week
  46. 46. Using Cream 45 40 35 30 25 20 15 10 5 0 once a day twice a day twice in a week three times in a week  25% says- Once in a day, 40% says- Twice in a day, 15% says- Twice in a week and 20% says- Three times in a week. 8. How following creams you have used mostly? a) Avon b) Lakme c) Fair n lovely d) L’Oreal e) Others
  47. 47. Using L'Oreal 35 30 25 20 Loreal 15 10 5 0 avon lakme fair n lovely Loreal Others  10% says- Avon, 15% says- Lakme, 25% says- Fair n lovely, 30% saysL’Oreal and 20% say- Others. 9. Which one you found more effective? a) Lakme b) Avon c) Fair n lovely d) L’Oreal e) Others
  48. 48. More Effective 40 35 30 25 20 Loreal 15 10 5 0 lakme avon fair n lovely Loreal Others  15% says- Lakme, 10% says- Avon, 25% says- Fair n lovely, 35% saysL’Oreal and 15% say- Others. 10. Number of customers satisfies with L’Oreal Product in comparison with other company’s product? a) Lakme b) Avon c) L’Oreal d)VLCC e) Others
  49. 49.  15% says- Lakme, 10% says- Avon, 40% says- L’Oreal, 25% says- VLCC and 10% say- Others. 11. In dealing with make-up, will you take chance with your skin for experimenting the products of L’Oreal Paris? a) Agree b) Agree a little c) Neither agrees nor disagrees d) Disagree a little e) Disagree strongly
  50. 50.  35% says- Agree, 30% says- Agree a little, 20% says- Neither agree nor disagree, 10% says- Disagree a little and 5% says- Disagree strongly.
  51. 51. FINDINGS FINDINGS: On the analysis and interpretation of research conducted. It was found that certain findings are very critical and are directly or indirectly affecting the L’Oreal Paris products. • There is a good awareness of L’Oreal Paris cosmetics products among the consumers. • The quality of L’Oreal Paris is very satisfactory viewed by the majority of customers.
  52. 52. FINDINGS FINDINGS: On the analysis and interpretation of research conducted. It was found that certain findings are very critical and are directly or indirectly affecting the L’Oreal Paris products. • There is a good awareness of L’Oreal Paris cosmetics products among the consumers. • The quality of L’Oreal Paris is very satisfactory viewed by the majority of customers.
  53. 53. • There is a neck to neck competition between L’Oreal, Lakme, VLCC, etc • 75% of the customers are fully satisfied with existing quality While 25% are partly satisfied. • Majority of women are using L’Oreal Paris products. • Consumers prefer the L’Oreal products because it provides good quality, good results, good services, etc and it all fulfills their needs.
  54. 54. CONCLUSION Conclusion: The competition is fierce in the multi-channel retailing environment. A business that hopes to grow and prosper requires a comprehensive logistics and transportation strategy, executed flawlessly. The dilemma for management lies in trying to meet consumers’ growing expectations while keeping costs in check. In response to these issues of multichannel growth, more and more carriers are branching out to offer logistics services. Those businesses that work to build successful relationships with logistics and transportation vendors will find that their efforts lead to improved customer service and profitability. It’s not an easy task, but it is certainly one that’s achievable with the tools and technology available today. L’Oreal Paris has been found to be the most preferred brand it meet the promise made to the customer. Consumer relies on the L’Oreal Paris products because it provides good quality, good results, good services, etc. So that customer may prefer
  55. 55. L’Oreal Paris products. While conducting survey I found that the customer may like the showrooms of the L’Oreal Paris products. They still likes the easily availability of various products. So the L’Oreal products customers are fully satisfied to use the products.
  56. 56. LIMITATIONS LIMITATION:  L’Oreal Paris is involved in doing business for various product categories but in this it only focuses on cosmetic products, which have to be considered.  In order to know consumer satisfaction for L’Oreal Paris only 50 female customers were surveyed.  The region covered for analyzing was just the overview of the result which is not enough for measuring the accurate data.
  57. 57. RECOMMENDATION RECOMMENDATION: • The supply must be properly fulfilled so the need of the customer satisfies. • Target selling for the dealer / agent can increase the sales ofcompany. • The company must concern to the satisfaction of customer demand. • The company and dealer should develop its marketing information system. up to date information of competitor's policy, price and product, target market, so the company can know its strengths and weaknesses.
  58. 58. • Brand preference studies reveal that comparatively there is more preference for L’Oreal among consumers so in order to attract and maintain his consumers. Advertising programs should be intensified. • Perception of the consumer is changing rapidly. They seek new benefits and values in their preferred brand. Moreover, consumer likes to have brand at low rate. So L’Oreal Paris should insert it so as to meet the changing preference of the consumer. • L’Oreal Paris is the market leader in make-up products. Most of the consumers are brand loyal. They should be treated as intangible assets. Loreal Paris should ever strive to satisfy them. • It should keep revitalizing its product / brands. • Fulfill the consumer needs.
  59. 59. BIBLIOGRAPHY A) Web Sites: 1. www.lorealparis.com 2. www.google.com B) News-paper: 1. Times of India C) Book: 1. Research Methodology: C.R. Kothari
  60. 60. ANNEXURE QUESTIONNAIRE Survey on Women’s Responses towards L’OREAL (Cosmetics): 1. Do you use cosmetics? a) Yes b) No 2. Are you a L’Oreal customer? a) Yes
  61. 61. b) No 3. Do you wear make-up? a) At Parties b) Always c) When I want to d) Outside home 4. How following face foundation have you used mostly? a) Lakme b) L’Oreal c) Avon d) Others 5. Which is your Favorite face foundation? a) Lakme b) L’Oreal c) Avon d) Others 6. What is your skin type? a) Rough b) Dry c) Smooth d) Oily e) Spotted
  62. 62. 7. How often do you use cream including night creams? a) Once a day b) Twice a day c) Twice in a week d) Three times in a week 8. How following creams you have used mostly? a) Avon b) Lakme c) Fair n lovely d) L’Oreal e) Others 9. Which one you found more effective? a) Lakme b) Avon c) Fair n lovely d) L’Oreal e) Others 10. Number of customers satisfies with L’Oreal Product in comparison with other company’s product? a) Lakme b) Avon c) L’Oreal
  63. 63. d) VLCC e) Others 11. In dealing with make-up, will you take chance with your skin for experimenting the products of L’Oreal Paris? a) Agree b) Agree a little c) Neither agree nor disagree d) Disagree a little e) Disagree strongly NAME…………………………………..… CONTACT NO. :………………………………….

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