Managerial Policy Course Faculty: Sir M Zeeshan Husain Members: Tariq Mehmood 56908 Saeed Kayyani 10603 Sikandar Iqbal 10952

1. PAF Karachi Institute of Economics and Technology
Faculty:
Sir MZeeshanHusain
Members:
Tariq Mehmood56908
SaeedKayyani 10603
SikandarIqbal 10952
Assignment
March 22
2020
Case Study: L'Oreal Case
Managerial
Policy

2. EXTERNAL DATA
External
(O & T)
Macro
Economic 34-Consolidated sale fallen by currency fluctuation (E-T)
Technological
40-Web enabled information(T-O)
41-Cutomization sites.(T-O)
Social
31-Reasearch on chemical and physical properties of African hair (O)
32-A world leader in skin and haircare for black women(O)
Political/Legal 35-war in Iraq forced it to cramp product launches(P-T)
Demographic
5-Beauty needs of different ethnic groups and genders(O)
26-secret to convey allure of different cultures through products(O)
Global
4- aggressive expansion and Acquisition (G-0)
7-Export to Holland, Austria and Italy in 2003 (G-O)
8-Loreal group entered in 130 countries with 290 subsidiaries (G-O)
12-Cosmetic portfolio contain world biggest beauty products (G-O)
37-World`s most respected company (G-O)
42-whole cosmetic market decline in 1990 (G-T)

3. Micro
Competitor
6- Tough competition from Estee Launder and P&G in 2003 (C-T)
22- Resolution facial skin care from Lancôme in 2002 WORLD # one
brand (C-O)
25-Galderma sustained growth Brazil 8%,Mexico 22% and south korea
23% (C-O)
28-Nivea got # 1 ranked beaten Plentitude with 11% shares (C-T)
46-Trickle down technology high end outlet to mass market (C-T)
Industry 45-Male cosmetic market predicted to take off in future (O)
INTERNAL DATA
Internal
(S & W)
Fin
43-Heavy investment on R&D (S)
44- Recovered its Investment globally by launching new
products (S)
HR
15-Group head by Lindsay Owen-jones World most respected
business leader(S)
16-50,000 employed people(S)
Marketing
1-A variety of beauty products (S)
2-Innovative and Diversified Strategy (S)
3- High profile celebrity-driven and marketing Campaign(S)
10-Cosmetics and Research dept. was heart of Strategy (S)
14-Brand life cycle could be very short (W)
27- Marketing different products for different nations (S)
13-Launching New Product (S)
29-Launch modern colorants that met women needs at
affordable prices (S)
33-Global male cosmetic market growth 30% annually (M-S)
50-Group focused north America with clever acquisition cause
problems for domestic rivals (W)
Procurement
30-Purchased soft sheen and Carson companies and rolled the
into one MEGA company(S)

4. Sale
9-More than 80% group sale from outside of France (S-S)
11-3%earth marked turnover by R & D(S)
17-€ 13.7 billion sales turnover in 2001(S-S)
18-Skincare product revenue US$ 17 billion in 2003 (S-S)
20- Sales growth in professional products 8.8% in 2003,in
consumer products 9.3%(S-S)
23-Market share in 2002 about 10.9% (S-S)
36-market shares of 21.2 % as a number one company in US (S-
S)
24-139 million euro and 7% growth (S-S)
21-Luxury product division growth 0.2% (W)
47-Plentitude brand sale in us was not promising (W)
48-Loreal sale in china slowed down after 1998 (W)
49-geographically Galderma did not achieved sustained growth
(W)
Operation/Mfg
19- Four Products categories (S)
38-World 4th largest consumer goods manufacturer (S)

5. SWOT ANALYSIS
Sr. STRENGTHS
1 43-Heavy investment on R&D (S)
2 44- Recovered its Investment globally by launching new products (S)
3 15-Group head by Lindsay Owen-jones World most respected business leader(S)
4 16-50,000 employed people(S)
5 1-A variety of beauty products (S)
6 2-Innovative and Diversified Strategy (S)
7 3- High profile celebrity-driven and marketing Campaign (S)
8 10-Cosmetics and Research dept. was heart of Strategy (S)
9 27- Marketing different products for different nations (S)
10 13-Launching New Product (S)
11 29-Launch modern colorants that met women needs at affordable prices (S)
12 33-Global male cosmetic market growth 30% annually (M-S)
13 50-Group focused north America with clever acquisition
14 30-Purchased soft sheen and Carson companies and rolled the into one MEGA company(S)
15 9-More than 80% group sale from outside of France (S-S)
16 11-3% earth marked turnover by R & D (S)
17 17-€ 13.7 billion sales turnover in 2001(S-S)
18 18-Skincare product revenue US $ 17 billion in 2003 (S-S)
19 20- Sales growth in professional products 8.8% in 2003,in consumer products 9.3%(S-S)
20 23-Market share in 2002 about 10.9% (S-S)
21 36-market shares of 21.2 % as a number one company in US (S-S)
22 24-139 million euro and 7% growth (S-S
23 19- Four Products categories (S)
24 38-World 4th largest consumer goods manufacturer (S)
Sr. WEAKNESS
1 14-Brand life cycle could be very short (W)
2 cause problems for domestic rivals (W)
3 21-Luxury product division growth 0.2% (W)
4 47-Plentitude brand sale in us was not promising (W)
5 48-Loreal sale in china slowed down after 1998 (W)
6 49-geographically Galderma did not achieved sustained growth (W)

6. Sr. OPPORTUNITY
1 40-Web enabled information(T-O)
2 41-Cutomization sites.(T-O)
3 31-Reasearch on chemical and physical properties of African hair (O)
4 32-A world leader in skin and haircare for black women(O)
5 5-Beauty needs of different ethnic groups and genders(O)
6 26-secret to convey allure of different cultures through products(O)
7 4- aggressive expansion and Acquisition (G-0)
8 7-Export to Holland, Austria and Italy in 2003 (G-O)
9 8-Loreal group entered in 130 countries with 290 subsidiaries (G-O)
10 12-Cosmetic portfolio contain world biggest beauty products (G-O)
11 37-World`s most respected company (G-O)
12 22- Resolution facial skin care from Lancôme in 2002 WORLD # one brand (C-O)
13 25-Galderma sustained growth Brazil 8%,Mexico 22% and south Korea 23% (C-O)
14 45-Male cosmetic market predicted to take off in future (O)
SR. THREATS
1 34-Consolidated sale fallen by currency fluctuation (E-T)
2 35-war in Iraq forced it to cramp product launches(P-T)
3 42-whole cosmetic market decline in 1990 (G-T)
4 6- Tough competition from Estee Launder and P&G in 2003 (C-T)
5 28-Nivea got # 1 ranked beaten Plentitude with 11% shares (C-T)
6 46-Trickle down technology high end outlet to mass market (C-T)

7. INTERNAL FACTOR EVALUATION (IFE) MATRIX (Rating Strength 3 and 4, Weakness1 and 2)
KEY INTERNAL FACTORS WEIGHT RATING WEIGHTED
Sr. STRENGTHS SCORE
1 43-Heavy investment on R&D (S) 0.3 4 1.2
2 44- Recovered its Investment globally by launching new products (S) 0.1 3 0.3
3
15-Group head by Lindsay Owen-jones World most respected business
leader(S) 0.02 4 0.08
4 16-50,000 employed people(S) 0.01 3 0.03
5 1-A variety of beauty products (S) 0.03 3 0.09
6 2-Innovative and Diversified Strategy (S) 0.01 3 0.03
7 3- High profile celebrity-driven and marketing Campaign (S) 0.01 3 0.03
8 10-Cosmetics and Research dept. was heart of Strategy (S) 0.03 3 0.09
9 27- Marketing different products for different nations (S) 0.02 4 0.08
10 13-Launching New Product (S) 0.01 4 0.04
11
29-Launch modern colorants that met women needs at affordable prices
(S) 0.05 4 0.2
12 33-Global male cosmetic market growth 30% annually (M-S) 0.01 3 0.03
13 50-Group focused north America with clever acquisition 0.02 3 0.06
14
30-Purchased soft sheen and Carson companies and rolled the into one
MEGA company(S) 0.04 4 0.16
15 9-More than 80% group sale from outside of France (S-S) 0.01 3 0.03
16 11-3% earth marked turnover by R & D (S) 0.01 3 0.03
17 17-€ 13.7 billion sales turnover in 2001(S-S) 0.03 4 0.12
18 18-Skincare product revenue US $ 17 billion in 2003 (S-S) 0.01 4 0.04
19
20- Sales growth in professional products 8.8% in 2003,in consumer
products 9.3%(S-S) 0.06 4 0.24
20 23-Market share in 2002 about 10.9% (S-S) 0.01 3 0.03
21 36-market shares of 21.2 % as a number one company in US (S-S) 0.02 3 0.06
22 24-139 million euro and 7% growth (S-S 0.03 4 0.12
23 19- Four Products categories (S) 0.01 4 0.04
24 38-World 4th largest consumer goods manufacturer (S) 0.06 4 0.24
WEAKNESS
1 14-Brand life cycle could be very short (W) 0.01 1 0.01
2 cause problems for domestic rivals (W) 0.03 1 0.03
3 21-Luxury product division growth 0.2% (W) 0.01 2 0.02
4 47-Plentitude brand sale in us was not promising (W) 0.01 1 0.01
5 48-Loreal sale in china slowed down after 1998 (W) 0.02 1 0.01
6 49-geographically Galderma did not achieved sustained growth (W) 0.01 2 0.02
1 3.47

8. RESULTS OF IFE MATRIX:
As internal factors of L’Oreal Industry performance is very good because the weighted score
is3.47, thatswhy L’Oreal is going very well in a smooth way.
EXTERNAL FACTOR EVALUATION (EFE) MATRIX (Rating 1 to 4)
KEY EXTERNAL FACTORS WEIGHT RATING WEIGHTED
Sr. OPPORTUNITY SCORE
1 40-Web enabled information(T-O) 0.03 2 0.06
2 41-Cutomization sites.(T-O) 0.3 3 2.7
3
31-Reasearch on chemical and physical properties of African hair
(O) 0.04 2 0.08
4 32-A world leader in skin and haircare for black women(O) 0.03 4 0.12
5 5-Beauty needs of different ethnic groups and genders(O) 0.05 4 0.2
6
26-secret to convey allure of different cultures through
products(O) 0.01 3 0.03
7 4- aggressive expansion and Acquisition (G-0) 0.02 2 0.04
8 7-Export to Holland, Austria and Italy in 2003 (G-O) 0.01 2 0.02
9
8-Loreal group entered in 130 countries with 290 subsidiaries (G-
O) 0.02 1 0.02
10 12-Cosmetic portfolio contain world biggest beauty products (G-O) 0.02 1 0.02
11 37-World`s most respected company (G-O) 0.03 4 0.12
12
22- Resolution facial skin care from Lancôme in 2002 WORLD #
one brand (C-O) 0.2 4 0.8
13
25-Galderma sustained growth Brazil 8%,Mexico 22% and south
Korea 23% (C-O) 0.04 4 0.16
14 45-Male cosmetic market predicted to take off in future (O) 0.01 2 0.02
THREATS
1 34-Consolidated sale fallen by currency fluctuation (E-T) 0.06 3 0.27
2 35-war in Iraq forced it to cramp product launches(P-T) 0.03 4 0.12
3 42- whole cosmetic market decline in 1990 (G-T) 0.04 3 0.12
4 6- Tough competition from Estee Launder and P&G in 2003 (C-T) 0.02 2 0.04
5 28-Nivea got # 1 ranked beaten Plentitude with 11% shares (C-T) 0.03 1 0.03
6 46-Trickle down technology high end outlet to mass market (C-T) 0.01 2 0.02
1 4.99
RESULTS OF EFE MATRIX:
By external factors of L’Oreal performance is excellent because the weighted score is 4.99 so
L’Oreal can performs faster worldwide having opportunities in new era.

9. Q: What Is the Changing Strategy of L`Oreal Followed?
ANS: L`OREAL group establish a Research and Development center in Chicago by 2003, to
analyze different ethnic groups, for the findings upon chemical and physical properties of
African gentry especially. The objective of this research was hair classification as per structural
fiber naturally made. The reason to choose Chicago is that there were well known universities
available for the investigating hair issues of black women as company acquired Soft Sheen-
Carson brand. Company focused to introduce new product with global opportunistic and
ethnic market. L’ORÉAL proved metal to stand with number one position in US states with
21.2% of market share as higher to the competitors. After 1 year stand as WORLD RESPECTED
COMPANY and 4th substantial consumption goods producer.
If you would like to launch in Pakistan, what will be the strategy?
STRATEGY: ICONIC MASCOT BRANDING
Human nature is to remember just important things, even we may not exactly remember what
we did yesterday, but we do remember highlights/moments, like Famous brand having a
celebrity as a brand ambassador.
Example:
BRAND: Oye Hoye, this brand introduced the chocolate boy FAWAD KHAN in a unique way.
Q: if you would like to launch in Pakistan, what will be the strategy????
ANS: LOREAL is an international cosmetic group, having innovative and diversified products. To
market L’Oreal products in Pakistan, we would like to use this strategy but the personality
should be male because we have to market male cosmetics of L oreal product in Pakistan, as
we know it’s a psychology of people puzzled to use cosmetics either it is for women or men. So
we have paste the picture of that personality on the product to make sure it is for men’s only.
The uniqueness of this strategy to target other cities of Pakistan like Punjab, kpk, Lahore, and
so on…..
CHOOSEN CELEBRITY: HUMAYOUN SAEED.
For marketing purpose we have to commercialize the product at television, radio and outside
branding like bill boards etc.…
As it is known that MAHIRA KHAN is the first LOREAL Brand ambassador for women cosmetic
group, but now HUMAYOUN SAEED will be the first Brand ambassador of LOREAL men
cosmetics group.
By this strategy o Lreal product of men cosmetics will grow up to brighten future / will be NO:
1 product for men cosmetics in Pakistan as well.