Managerial Policy Course Faculty: Sir M Zeeshan Husain Submitted By:- SADAF WAHEED FIZA AKHTER

1. 1
MANAGERIAL POLICY:
ASSIGNMENT2:
STUDENTSOFMBA:
NAMEOF GROUP MEMBERS:
 SADAF WAHEED
 FIZA AKHTER
SUBMITTED TO:
SIR ZEESHAN HUSSAIN
CASE STUDY:
LOREALS BUSINESS STRATEGY:

2. LOREALS BUSINESS STRATEGY:
2
TABLE OF CONTENTS:
External Data…………………………………………………………………………………………………………………. 3
Internal Data…………………………………………………………………………………………………………………. 4
SWOT Analysis………………………………………………………………………………………………5
IFE Matrix…....................................................................................................8
 Conclusion of IFE Matrix………………………………………………………………………………………. 10
EFE Matrix………………………………………………………………………………………………….. 10
 Conclusion of EFE Matrix………………………………………………………………………………………. 11
Changing Strategy………………………………………………………………………………………. 12
Strategy for Launching Brand in Pakistan……………………………………………………. 13

3. LOREALS BUSINESS STRATEGY:
3
EXTERNAL DATA: (OPPORTUNITES & THREATS)
External
(O & T)
Macro
Economic 6. Consolidatedsale fallenbycurrencyfluctuation. (T)
Social
5. Growingdemandforbeautybusiness;suchashair color, skincare &
perfumeries.(O)
8. Research onchemical andphysical propertiesof Africanhair. (O)
9. A worldleaderinskinand hair care forblack women.(O)
Technological
1. Web– enabledinformation. (O)
2.Customizationsites.(O)
Political/Legal 7. War in Iraqforcedit to cramp product launches. (T)
Demographic 3. Beautyneedsof differentethnicgroups&gender. (O)
Global
1. Whole cosmeticmarketslightlydeclinein1990s. (T)
11. Global male cosmeticsmarketisgrowing30% annually. (O)
12. World`smost respectedcompany.(O)
Micro
Competitor
2. ToughcompetitionfromEstee Lauder&Procter& Gamble in2003. (T)
4. ExportingcosmeticproductstootherEuropeancountries.(O)
3. Increasingcompetitionfrompharmaceuticals. (T)
6. Resolutionfacialskincare fromLancôme in2002 become world
numberone retailingchannel(O)
7. Galderma sustained growth Brazil8%, Mexico 22% and southKorea
23%. (O)
4.Reach out to more people acrossabiggerrange of incomes&cultures
than justaboutany otherbeautyproductcompany.(T)
5. Numberone cosmeticmarketbutcompetitioninthe U.S& international
marketsalso. (T)
8.Trickle downtechnologyhighendoutlettomassmarket (T)
Industry 10. Male cosmeticmarketpredictedtotake off in future. (O)

4. LOREALS BUSINESS STRATEGY:
4
INTERNAL DATA: (STRENGTHS & WEAKNESSES)
Internal
(S&W)
FINANCE
12.Heavy investmentonR&D. (S)
13. RecovereditsInvestmentgloballybylaunchingnew products.(S)
HR
15. Group headedbyLindsayOwen-Jones,Worldmostrespectedbusiness
leader.(S)
16. 50,000 employedpeople.(S)
Marketing
1.World leaderincosmeticsmarket.(S)
2. Varietyof beautyproducts. (S)
3. Strategyof innovation&diversification. (S)
4. Enhanceditsbrandimage globallystrongbrandimage. (S)
5. HighBrand Awarenessamongmen&women.(S)
8. Cosmetic&dermatological researchdepartmentwasheartof strategy. (S)
1. Group focusednorthAmericawithcleveracquisitioncause problemsfor
domesticrivals. (W)
10. Diversityof beautybusiness;suchashaircolor,permanents,stylingaid,body
care, skincare & fragrances.(S)
11. Portfoliocontainedworld’sbiggestbeautyproducts.Itownedbrands,
includingKerastase,Garnier,Maybelline etc. (S)
2. Brand life cycle couldbe veryshort.(W)
14. High endadvertising. (S)
20. Perceivedhighqualitywasavailable tomaximumnumberof customers.(S)
25. Launch moderncolorantsthatmet womenneedsataffordable Prices.(S)
27. Global male cosmeticsmarketisgrowing30% annually. (S)
Procurement
24. Secretto conveyallure of differentculturesthrough itsproducts.(S)
26. PurchasedsoftsheenandCarsoncompaniesandrolledthem intoone mega-
company.(S)
Sale
7. More than80% of groupsaleswere generatedoutside France. (S)
9.3% earmarkedgroupturnoversale tothe R&D.(S)
3. Salesinthe U.S had notbeenpromising. (W)
17.€ 13.7 billionsalesturnoverin2001.(S)
18. Skincare productrevenue US$ 17 billionin2003. (S)
21.Salesgrowthin professionalproducts8.8% in2003,in consumerproducts
9.3%.(S)
4. Luxuryproductdivisiongrowth0.2%. (W)
22. Market share in Europe in2002 about 10.9% growth rate.(S)
23. Dermatologyachievedsalesof 139 millioneuroand7% growth. (S)
28. Showedadouble –digitprofitgrowthrate.(S)
29. Market sharesof 21.2 % as a numberone companyinUS. (S)
5. L’Oreal sale inchinasloweddownafter1998. (W)
Operation/Mfg
6. Presentin130 countrieswith290 subsidiaries. (S)
19. Four Productscategories ;consumer,luxury,professional&active.(S)
30. World4 the largestconsumergoodsmanufacturer.(S)

5. LOREALS BUSINESS STRATEGY:
5
SWOT ANALYSIS:
STRENGTH WEAKNESS
1.World leaderincosmetics market.(S) 1. Group focusednorthAmericawithcleveracquisition
cause problemsfordomesticrivals. (W)
2. Varietyof beautyproducts. (S) 2. Brand life cycle couldbe veryshort.(W)
3. Strategyof innovation&diversification. (S) 3. Salesinthe U.S had notbeenpromising. (W)
4. Enhanceditsbrandimage globallystrongbrand
image. (S)
4. Luxuryproductdivisiongrowth0.2%. (W)
5. HighBrand Awarenessamongmen&women.(S) 5. L’Oreal sale inchinasloweddownafter1998. (W)
6. Presentin130 countrieswith290 subsidiaries. (S)
7. More than80% of groupsaleswere generated
outside France. (S)
8. Cosmetic&dermatological researchdepartmentwas
heartof strategy. (S)
9.3% earmarkedgroupturnoversale tothe R&D.(S)
10. Diversityof beautybusiness;suchashaircolor,
permanents,stylingaid,bodycare,skincare &
fragrances.(S)
11. Portfoliocontainedworld’sbiggestbeauty
products.It ownedbrands,includingKerastase,Garnier
, Maybelline etc. (S)
12.Heavy investmentonR&D. (S)
13. RecovereditsInvestmentgloballybylaunchingnew
products.(S)
14. High endadvertising. (S)
15. Group headedbyLindsayOwen-Jones,Worldmost
respectedbusinessleader.(S)
16. 50,000 employedpeople.(S)
17.€ 13.7 billionsalesturnoverin2001.(S)
18. Skincare productrevenue US$ 17 billionin2003.
(S)
19. Four Productscategories ;consumer,luxury,
professional&active.(S)

6. LOREALS BUSINESS STRATEGY:
6
20. Perceivedhighqualitywasavailable tomaximum
numberof customers.(S)
21.Salesgrowthin professionalproducts8.8% in
2003,in consumerproducts
9.3%.(S)
22. Market share in Europe in2002 about 10.9%
growthrate.(S)
23. Dermatologyachievedsalesof 139 millioneuro
and 7% growth.(S)
24. Secretto conveyallure of differentculturesthrough
itsproducts.(S)
25. Launch moderncolorantsthatmet womenneedsat
affordable Prices.(S)
26. PurchasedsoftsheenandCarsoncompaniesand
rolledthem intoone mega-company.(S)
27. Global male cosmeticsmarketisgrowing30%
annually. (S)
28. Showedadouble –digitprofitgrowthrate.(S)
29. Market sharesof 21.2 % as a numberone company
inUS. (S)
30. World4 the largestconsumergoods manufacturer.
(S)
OPPORTUNITY THREAT
1. Web– enabledinformation. (O) 1. Whole cosmeticmarketslightlydeclinein1990s. (T)
2.Customizationsites.(O) 2. ToughcompetitionfromEstee Lauder&Procter&
Gamble in2003. (T)
3. Beautyneedsof differentethnicgroups&gender.
(O)
3. Increasingcompetitionfrompharmaceuticals. (T)
4. ExportingcosmeticproductstootherEuropean
countries.(O)
4.Reach out to more people acrossabiggerrange of
incomes&culturesthanjustaboutanyother beauty
productcompany.(T)
5. Growingdemandforbeautybusiness;suchashair
color, skincare & perfumeries.(O)
5. Numberone cosmeticmarketbutcompetitioninthe
U.S & international marketsalso. (T)
6. Resolutionfacialskincare fromLancôme in2002
become worldnumberone retailingchannel (O)
6. Consolidatedsale fallenbycurrencyfluctuation. (T)
7. Galderma sustained growthBrazil8%, Mexico 22%
and southKorea 23%. (O)
7. War in Iraqforcedit to cramp product launches. (T)
8. Researchonchemical andphysical propertiesof
Africanhair. (O)
8.Trickle downtechnologyhighendoutlettomass
market(T)

7. LOREALS BUSINESS STRATEGY:
7
9. A worldleaderinskinand hair care forblack
women.(O)
10. Male cosmeticmarketpredictedtotake off in
future. (O)
11. Global male cosmeticsmarketisgrowing30%
annually. (O)
12. World`smost respectedcompany.(O)

8. LOREALS BUSINESS STRATEGY:
8
INTERNAL FACTOR EVALUATION (IFE) MATRIX
(Rating Strength 3 and 4, Weakness 1 and 2)
Key Internal Factor Weight Rating
Weighted
Score
S.No Strength
1. Worldleaderincosmeticsmarket.(S) 0.2 4 0.8
2. Varietyof beautyproducts. (S) 0.1 4 0.4
3. Strategyof innovation&diversification. (S) 0.04 4 0.16
4. Enhanceditsbrand image globallystrongbrandimage.
(S)
0.04 4 0.16
5. HighBrand Awarenessamongmen&women.(S) 0.03 3 0.09
6. Presentin130 countrieswith290 subsidiaries. (S) 0.01 3 0.03
7.
More than 80% of groupsaleswere generatedoutside
France. (S) 0.02 3 0.06
8. Cosmetic&dermatological researchdepartment was
heartof strategy. (S)
0.03 3 0.09
9. 3% earmarkedgroupturnoversale tothe R&D.(S) 0.03 3 0.09
10
Diversityof beautybusiness;suchashaircolor,
permanents,stylingaid,bodycare,skincare &
fragrances.(S)
0.02 4 0.08
11.
Portfolio containedworld’sbiggestbeautyproducts.It
ownedbrands,includingKerastase,Garnier,Maybelline
etc. (S)
0.03 4 0.12
12. HeavyinvestmentonR&D. (S) 0.01 3 0.03
13.
RecovereditsInvestmentgloballybylaunchingnew
products.(S) 0,03 3 0.09
14. Highendadvertising. (S) 0.01 3 0.03
15.
Group headedbyLindsayOwen-Jones,Worldmost
respectedbusinessleader.(S) 0.01 3 0.03

9. LOREALS BUSINESS STRATEGY:
9
16. 50,000 employedpeople.(S) 0.01 3 0.03
17. € 13.7 billionsalesturnoverin2001.(S) 0.01 3 0.03
18. Skincare productrevenue US$ 17 billionin2003. (S) 0.02 3 0.06
19.
Four Productscategories ;consumer,luxury,professional
& active.(S) 0.03 4 0.12
20.
Perceivedhighqualitywasavailable tomaximum
numberof customers.(S) 0.03 4 0/12
21.
Salesgrowthinprofessionalproducts8.8% in2003,in
consumerproducts 9.3%.(S) 0.01 3 0.03
22.
Market share in Europe in2002 about10.9% growth
rate.(S) 0.01 3 0.03
23.
Dermatologyachievedsalesof 139 millioneuroand7%
growth.(S) 0.01 3 0.03
24.
Secretto conveyallure of differentculturesthrough its
products.(S) 0.02 3 0.06
25.
Launch moderncolorantsthatmetwomenneedsat
affordable Prices.(S) 0.03 3 0.09
26.
PurchasedsoftsheenandCarsoncompaniesandrolled
them intoone mega-company.(S)
0.01 3 0.03
27. Global male cosmeticsmarketisgrowing30% annually.
(S)
0.01 4 0.03
28. Showedadouble –digitprofitgrowthrate.(S) 0.01 3 0.03
29 Market sharesof 21.2 % as a numberone companyin
US. (S)
0.01 3 0,03
30. World4 the largestconsumergoods manufacturer.(S) 0.1 4 0.4
Weakness
31. Group focusednorthAmericawithcleveracquisition
cause problemsfordomesticrivals. (W)
0.02 2 0.04
32. Brand life cycle couldbe veryshort.(W) 0.02 2 0.04
33. Salesinthe U.S hadnot beenpromising. (W) 0.01 1 0.01
34. Luxuryproductdivisiongrowth0.2%. (W) 0.01 2 0.02
35. L’Oreal sale inchinasloweddown after1998. (W) 0.01 1 0.01
1.0 3.5

10. LOREALS BUSINESS STRATEGY:
10
CONCLUSION OF IFE MATRIX:
According to the internal factors L’Oreal Industry performance is very good because the
weighted score of L’Oreal Industry is 3.5 so L’Oreal performs very well in whole world &
awaiting more strength in future.
EXTERNAL FACTOR EVALUATION (EFE) MATRIX
(Rating 1 to 4)
Key External Factor Weight Rating
Weighted
Score
S.No Opportunity
1. Web– enabledinformation. (O) 0.05 3 0.15
2. Customizationsites.(O) 0.02 2 0.04
3. Beautyneedsof differentethnicgroups&gender. (O) 0.1 3 0.3
4. ExportingcosmeticproductstootherEuropean countries.
(O)
0.1 4 0.4
5. Growingdemandforbeautybusiness;suchashaircolor ,
skincare & perfumeries.(O)
0.2 4 0.8
6. Resolutionfacial skincare fromLancôme in2002 become
worldnumberone retailingchannel (O)
0.05 4 0.2
7. Galderma sustained growthBrazil8%, Mexico 22% and
southKorea 23%. (O) 0.01 2 0.02
8. Researchonchemical andphysical propertiesof African
hair. (O) 0.02 2 0.04
9. A worldleaderinskinand haircare for blackwomen.(O) 0.03 2 0.06
10. Male cosmeticmarket predictedtotake off infuture. (O) 0.1 3 0.3
11. Global male cosmeticsmarketisgrowing30% annually.
(O) 0.03 3 0.09

11. LOREALS BUSINESS STRATEGY:
11
12. World`smost respectedcompany.(O) 0.05 4 0.2
Threat
13. 1. Whole cosmeticmarketslightlydeclinein1990s. (T) 0.03 2 0.06
14. 2. ToughcompetitionfromEstee Lauder&Procter&
Gamble in2003. (T)
0.05 3 0.15
15. 3. Increasingcompetitionfrompharmaceuticals. (T) 0.05 2 0.1
16. 4.Reach out to more people acrossabiggerrange of
incomes&culturesthanjustaboutany other beauty
productcompany.(T)
0.03 1 0.03
17. 5. Numberone cosmeticmarketbutcompetitioninthe
U.S & international marketsalso. (T)
0.04 4 0.16
18. 6. Consolidatedsale fallenbycurrencyfluctuation. (T) 0.01 2 0.02
19. 7. War in Iraqforcedit to cramp product launches. (T) 0.01 1 0.01
20. 8.Trickle downtechnologyhighendoutlettomassmarket
(T)
0.02 1 0.02
1.0 3.15
CONCLUSION OF EFE MATRIX:
According to the external factors L’Oreal Company performance is very good because the
weighted score of L’Oreal Company is 3.15 so L’Oreal performs very well in whole world &
awaiting more opportunities in future.

12. LOREALS BUSINESS STRATEGY:
12
Explain the changing strategy of L`OREAL business strategy?
 L`OREAL business strategy:
L`OREAL was gradually turning marketing efforts to the ethnic beauty industry
reaping profit. L`OREAL had purchased two black centered beauty companies:
 Soft Sheen
 Carson & rolled them in to one mega – company.
L`OREAL group establish a Research & Development center in Chicago by 2003,to analyze
different ethnic groups, for the findings upon chemical and physical properties of African
gentry’s especially.
The goal of this research was hair classification as per structural fiber so that the performance
of hair relaxers currently in the market could be improved. 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.
The recent economic crisis has brought this strategy into focus. To counter the deficit,
broadening the consumer base will allow the company to concentrate on accessible innovation.
L’Oreal is also expanding geographically. The company is moving into the Latin American and
Eastern European markets for deodorants and fragrances, which have been an outstanding
success. Company focused to introduce new product with global opportunistic and ethnic
market.
L’ORÉAL had proven metal to stand with number one position in US states with 21.2% of
market share as higher to the competitors. L’Oreal supports its sales growth by increasing
expenses in promotions and advertising. “We intend to maintain a high level of investment in
P&A, at the same time as undertaking an in depth analysis of our operations in this area to
ensure that every euro generate maximum additional growth,” Jean-Paul Agon, the CEO of the
company.
Research showed that men were far more branded loyal in this market than women. The global
male cosmetics market is growing 30% annually.
L’ORÉAL climbed 10 places to the 20th position in the annual Financial Times survey of the
World’s Most Respected Companies compared to the 30th position it held in 2003 ranking.
After 1 year stand as WORLD RESPECTED COMPANY and 4th substantial consumption goods
producer.

13. LOREALS BUSINESS STRATEGY:
13
If you would like to launch in Pakistan, what will be the strategy?
Pakistan’s beauty care market is Vast & Diverse. Decades Pakistan’s beauty care market has
been dominated by FMCG Companies; Such as, PROCTOR & GAMBLE, RECKITT BENCKISER,
UNILEVER PAKISTAN (AND OTHERS).
Now need to launch International ‘PURE BEAUTY’ brands available in Pakistan. So we would
launch the L’Oreal brand in Pakistan. So we need to make some powerful strategy to launching
this brand in Pakistan.
STRATEGIES FOR LAUNCING BRAND IN PAKISTAN:
First Strategy:
 Createa community to build brand advocacy:
L’Oreal Company must leverage the inner desire of millennial to connect
with our brand, to share their brand experience with others, and to become a part of
the brand they resonate with. That’s why company today must invest in building
communities of customers and fans, via social media and other online forums. L’Oreal
brand as a beauty marketer, it’s critical that we find our brand voice and stick to the
main focus of our brand. Inspire customers to share their feedback, beauty inspiration
and tips within the groups. Share special promotions as an exclusive members-only
offer, and collaborate with beauty experts to help people solve their beauty problems.
Remember that our main goal is to retain customers and strengthen their connection to
our brand by building lasting relationships. So that’s why we create a community to
build brand advocacy strategy to launching the L’Oreal brand in Pakistan. Because these
type of strategy is very helpful to launching our L’Oreal brand in Pakistan.
Second Strategy:
 Micro-influencersarethekey to the customer’sheart:
We create second strategy to launch the L’Oreal brand in Pakistan is micro
influencers. There’s a major shift occurring in the L’Oreal industry. Main reason to
select this type of strategy is that because customers want to interact with real people
and identify with their everyday struggles. This is why micro-influencers have become so
popular recently. A person who knows how to build communities based on trust, loyalty
and authenticity will win the attention of customers. If we want to analyze the potential
influence, numbers, and engagement on social media platforms, we can easily find out
all important data using Social Blade. Choosing the right influencer for our campaign has
never been easier.

14. LOREALS BUSINESS STRATEGY:
14
Third Strategy:
 Promotionstrategy of L’Oreal brand inPakistan:
We introduce strategy of L’Oreal brand in Pakistan by the help of Fashion Shows,
Imaginative Musical Promotion, Hiring celebrities. We choose the celebrity AYZA KHAN
for the L’Oreal brand ambassador for women cosmetic products. We choose AYZA KHAN
that’s why most of the people like AYZA KHAN. So we easily attract the customer in our
product.
We have to use advertising the brand at television, we make web page in face book,
instragram outside branding used for marketing purpose because many people connect
through this internet connection.
We target the women & men both in all cities in Pakistan. But our major target in
LAHORE, KARACHI & ISLAMABAD.
LAHORE-The world leading beauty brand L’Oreal brand launched its ‘I Am worth It’
campaign’ to raise awareness and highlight L’Oreal’s commitment towards women’s
empowerment in Pakistan at PFDC L’Oreal Bridal Week.
 We make all three strategies for launching the L’Oreal brand in Pakistan because these
strategies help to launch the L’Oreal brand easily in Pakistan & also attract the
customers for purchasing the L’Oreal brand . Because these types of strategies help to
launch the international pure beauty brand in Pakistan. Customer attracts these L’Oreal
brand with the help of these types of strategies, because international pure beauty
brand easily available in Pakistan.