This document outlines L'Oreal's diversification strategies through acquisitions and expanding into new product categories. It discusses L'Oreal's acquisition of The Body Shop and expansion into professional, luxury, consumer, and active product lines. Alternative strategic marketing solutions proposed for L'Oreal include direct sales, acquiring other companies, and offering franchise ownership models to increase global market presence. Reasons for franchising include sharing costs with franchise owners while maintaining quality control and brand consistency.

1. Presentation By :

2. Members
1. Aditya Thakkar (201412013)
2. Chirag Sanghvi (201412016)
3. Dhaval Barot (201412032)
4. Shailaja Shah (201412045)
5. Kirangi Shah (201412053)
6. Hiren Vaghasiya(201412057)
7. Kishan Ajudiya (201412068)
8. Yash Thakkar (201412079)
9. Sapan Soni (201412087)

3. About Imagine Dragons
• American Rock band
• Nominee for innovative and creative artists in different genres.
• Current members
• Dan Reynold
• Danial Wayne Sermon
• Ben McKee
• Denial Platzmat
• Ryan Walker (Touring Member)

4. Agenda
• Introduction
• Diversification
• Types of Diversification
• Reasons for Diversification
• Some Diversifications adapted by L'Oreal
• Alternative Strategic Marketing Solutions
• Summary
• References

5. About L’Oreal
• Who they are?
• Mission
• Beauty is a language
• Beauty is universal
• Beauty is a science
• Beauty is a commitment

6. Diversification
• Mainly two type of Diversification
1. Concentric Diversification
• Related Diversification
1. Conglomerate Diversification
• Unrelated Diversification

7. Diversification
• Diversification Classified according to Direction
1. Horizontal Diversification
2. Vertical Diversification
• Forward Vertical Diversification
• Backward Vertical Diversification
• Main reason for Diversification

8. Some Diversifications adapted by L'Oreal
• Cosmetics
• Professional
• Luxury
• Consumer
• Active

9. Professional Products

10. Luxury Products

11. Consumer Products

12. Active Products
SkinCeuticals

13. Dermatology
• What is dermatology?
• What other companies do?
• What L’Oreal do?

14. Dermatology
• L’Oreal Strategy
• Early Days
• Recent Days

15. The Body shop
• History
• Reasons why L'Oreal acquired Body Shop
• Activate Self-esteem
• Protect our planet
• Against animal testing
• Support community trade

16. Alternative Strategic Marketing Solution
• To enhance it’s global marketing L’Oreal decided three alternatives strategic marketing
solutions.
1. Direct Sales
2. Acquire Company (Acquisition)
3. Franchise Ownership

17. Direct Sales
• Pricing
• Budget
• Markets
• Price & Distribution Strategies
• Advantages & Disadvantages

18. Acquire to Survive
Pros
•Economies of scale
•Profit centers are already in place
•Region specific needs
•Expand geographically
•Overcome from entry barrier
•Better positioned to evaluate intrinsic value
Cons
•Hard to choose a befitting one
•Failure to clear seller’s potential liabilities
•Over leveraging

19. Franchise Ownership
• To increase it’s market.
• To provide product that meet the masses from low to high end.
• Utilize current pricing and distribution strategies for the franchise owners, and customize
according to franchise model.
• Test the franchise ownership where franchising is in demand.
• L’Oreal recruit franchise owners.
• Franchise owner communicate with L’Oreal management about product.
• L’Oreal will bring community awareness to the new stores and franchise.

20. Franchise Ownership
• Pros
• Most of the cost will be responsible to each franchise owner.
• L’Oreal will not have to spend money in advertisement, promotion, and sales of product.
• Crons
• If L’Oreal does not position market at right place, it can hurt L’Oreal’s image.
• L’Oreal lose some control as it give some control to franchise owner.

21. Why Franchising?
• Franchise Owner of the L’Oreal Shop pays for most costs.
• More revenue will be generated.
• Profit Margins are typically higher with most franchise models.
• Greater quality control.
• Franchise Owner – Not Employee (No Overhead).
• Franchise can be scalable and flexible.
• Franchising is Globally accepted.
• Estimation of 50% sales through franchising.
• Seamless Marketing and Branding

22. Summary

23. References
[1] http://www.loreal.co.in/
[2] http://en.wikipedia.org/wiki/L%27Or%C3%A9al
[3] http://www.loreal.co.in/group/company-overview/key-figures.html
[4] http://www.loreal.com/default.aspx
[5] http://www.lorealparis.ca/_en/_ca/home/index.aspx
[6] http://globelink.ca/case-study-loreal/
[7] http://www.scribd.com/doc/41258546/L-Oreal-India-Case-Study#scribd

24. Remaining with any doubts in
mind?
-Because You are worth it

25. Thank You