Answers to the questions from the case study, "L'Oreal- Global Success Through Innovation. Includes current market analysis.

1. L’OREAL – GLOBAL SUCCESS
THROUGH INNOVATION

2. GETTING TO KNOW L’OREAL
Headquarters France
Regional
Involvement
Global
Category
Involvement
Skincare, Colour cosmetics, Hair care, Fragrances,
Men’s grooming and Sun care.
World BPC Share
(2011)
9.7%
World BPC value
growth (2011)
4. 8%

3. WHAT THE CASE TELLS US
• Main reasons for global success are targeting methods and frequent use of
products by youth
• Invests 3% of revenue in R&D as innovation and quality of product gives a
competitive advantage.
• Manufactures large quantities of products and acquisition strategy helps
increase capacity
• Each brand division has its own distribution system
• Promotion of L’Oreal’s image and values provides them with a sustainable
competitive advantage.
• Acquisition of brands from countries of origin combined with L’Oreal’s
promotion strategy helped them become an international success in
emerging markets

4. CURRENT SCENARIO
L’oreal operates through 4 divisions
• Consumer Product Division – L’oreal Paris,
Garnier, Maybelline NY
• Professional Product Division – L’oreal
Professional, Matrix Kerastase
• Active Cosmetic Division – Vichy (It is a
dermatological product)
• Luxury Product Division – Lancome,
Biotherm, Giorgio Armani, Ralph Lauren
Fragrances

7. MARKET SHARE OF L’OREAL
Source: http://magazine.loreal-finance.com/en/loreals-worldwide-performances.htm

8. WHO DOES L’OREAL
COMPETE WITH?

9. GLOBAL COMPETITORS WITH
MARKET SHARE
COMPANY
% SHARE
(2010)
% SHARE
(2011)
1. Procter & Gamble Co. 11.5 11.5
2. L’Oreal Group 9.8 9.7
3. Unilever Group 7.0 7.8
4. Colgate-Palmolive Co 3.6 3.8
5. Avon Products Inc. 3.2 3.2
6. Estee Lauder Cos Inc 2.9 2.9
7. Shiseido & Johnson Ltd 2.6 2.5
Source:http://www.euromonitor.com/medialibrary/PDF/LOreal-Company-Profile-SWOT-Analysis.pdf

10. TOTAL NUMBER
OF PATENTS
RESEARCH AND
INNOVATION
BUDGET
Source: http://www.loreal-finance.com/eng/key-figures

11. Source: http://www.loreal-finance.com/eng/key-figures
Sales Figures

12. Sales

13. CHANGE IN
WORKFORCE
BREAKDOWN OF
EMPLOYEES BY
GEOGRAPHIC ZONE
Source:http://www.loreal-finance.com/eng/key-figures

14. THE ADVERTISEMENT DEPICTING
INNOVATION
• (Insert video)

15. L'Oreal's success can be attributed to these following factors:
 Understanding Consumers Globally
 Wide range of products
 Effective positioning vis-à-vis its competitors
SUCCESS

16. LEARNINGS FROM THE CASE
• L’Oreal relies on R&D for their new product innovation
• Their acquisition strategy has been very successful as they allow the
companies to flourish by promoting their country of origin
• Increase in patent registrations has given L’Oreal a sustainable competitive
advantage.
• Variety of distribution channels helps in increase of sales.
• Effective and unique promotion and advertising of its image with each
country’s perception of beauty.