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Final loreal ppt marketing


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Final loreal ppt marketing

  1. 1. L’ORÉAL “Because It Is Worth It”
  2. 2. Group Members •Shivani Sharma - 38 •Anitha Nadar - 21 •Jay Naik - 24 •Kavita More - 19
  3. 3. The History Of the company… • In 1907, a young French chemist Eugéne Schueller developed an innovative colour formula; • In 1909, he registred his own company; • In 1920, the small company employed 3 chemists; • In 1912, Eugéne Schueller started to export his products; • In 1933, he created and launched Votre Beauté, a magazine devoted to women; • In 1953, L„Oréal won an advertising Oscar.
  4. 4. About the industry  The cosmetic industry is a profitable business for most of the manufacturers of cosmetic products.  The cosmetic industry world wide seems to be continuously developing, many famous companies sell their cosmetic products online also in countries in which they do not have representatives.
  5. 5. • L'Oreal on the road to greatness • Becoming number one in the beauty industry • First steps : the model takes shape • The diversity of beauty throughout the world 2000-present 1909-1956 1957-19831984-2000 HISTORY
  6. 6. Operation • L'Oreal is the world largest cosmetics and beauty company. They have over 500 products. • This brand concentrates on: • Hair color • Skin care • Sun protection • Make up • Perfumes • Hair care
  7. 7. Our brand’s BECAUSE YOU'RE WORTH IT
  8. 8. PRODUCT TARGET • L‟Oreal is mainly used for the younger people like teenagers as most of their products involves make up which most teenagers like. • L'Oreal also targets their products to older women. • Their slogan “because we‟re worth it” shows that the product is a luxury product which suggests it is could be expensive. • L'Oreal's product, reached the top 100 brands of The Brand Trust Report published by Trust Research Advisory in India
  9. 9. MARKET SHARE OF L’OREAL Other brand’s 59% L'Oreal 41% Hair colour 20% Skincare 6.5% Shampoo 4.6%
  10. 10. Competitors in Indian market
  11. 11. • To keep the different brands in one basket and yet keeping the differentiation. CHALLENGE • Good brand management was all about hitting the right target audience with the right product. STRATEGY Understandings • Company was brilliant in identifying the needs, cultures and aspirations of different kinds of customers in diversified regions.
  12. 12. When it First Entered the Market • Gender Segmentation • “combination of low price and natural ingredients would fit India‟s market,  women use plants and herbs as part of their beauty culture”.  specifically catered to the women of India,  how it should carve a niche market for itself in the Men‟s sector as well.
  13. 13. • Income Segmentation: 2 main segments:  the poorer masses and the rest • marketed its product • low in cost to attract the poorer masses, and her efforts in reducing ingredients to cut price reveals her aim to minimize costs as much as possible.  NOT YET TARGETING middle class or upper class • did not make any distinct segmentation of the richer classes
  14. 14. The “L‟Oreal Makeover” • Income Segmentation: • the quickly rising middle class which was gaining in affluence. • fastest growing income class that represented a highly untapped market potential due to their radically different mindsets from the masses. • Age Segmentation: • the younger middle class from the more conservative, often older Indians, • showed an increased interest in capturing the market share of the younger Indians.
  15. 15. • Psychographic Segmentation: • L‟Oreal segmented India into different groups based on their thinking and behavior from the older • more conservative Indians who held conservative values of thriftiness more strongly and stubbornly, • the younger more impressionable generation who had developed a very different and westernized view on spending and culture
  16. 16. TARGETING  young affluent middle class females, especially those with graying hair • maximum profits as it not only possessed the purchasing power that masses lacked, but more critically a modernized mentality • these people more receptive to purchasing L‟Oreals‟ more luxurious and expensive products..  L‟Oreal also target women that sought benefits from using its products • no product that solved women‟s hair greying problems • Middle aged and working women became the main target of the company.
  17. 17.  YOUNG MIDDLE CLASS • who did not mind using products that damaged their hair as long as they were cheap due to monetary problems, • these women were more educated and concerned for the need to have healthy beautiful hair, as well as more equipped with the purchasing power to do so
  18. 18.  LOWER INCOME MASSES • introduced new products like „Colour Naturals‟ which be used multiple times and cost only $3.10, translating into increased value for the masses. • L‟Oreal‟s strategy targeted the more affluent that were more educated and had more disposable income to splurge on luxury items if they justified their price.
  19. 19. Brand Positioning • Company has a strong and long-term brand positioning specially within the minds of middle age women and teenage girls.
  20. 20. POSTITIONING  L‟Oreal hired Ms World in an advertisement • L‟Oreal India launched the program “Beautiful Beginnings” on 7th July 2009, an initiative which aimed to train at least 200 unprivileged school drop-out girls every year to make them employable. It was even inaugurated by Bollywood actress Aishwarya Rai ,
  21. 21.  L‟Oreal has historically carried a premium image and price tag  Viral marketing  dual positioning strategy in India • L‟Oreal reduced its hair care range prices by 25% in 2010 after it began local production and resorted to another 4% price cut this year
  22. 22. DIFFERENTIATION  Home brands aimed to garner loyalty of existing users • repeated use by generations of Indians would bring about feelings of trust and dependability • attracted thrifty housewives who wanted the cheapest products  DIFFERENTITATED : by promising better quality products to the rising middle class • When L‟Oreal first entered India :beauty education was absent, training seemed redundant and hairdressers were well satisfied with cheap local domestic brands • invested heavily in education and training to boost their status in the community.
  23. 23. Conclusion • The L‟Oreal Group is the world‟s largest cosmetics & beauty company. In our opinion, we think that L‟Oreal has successfully created a brand identity as the adverts that present the products make them look more expensive.