1. NEED/ WANT/ DEMAND
Need: It is state of deprivation of some basic satisfaction.
e.g. - cosmetic product
Want: Desire for specific satisfier of need.
e.g. - Indians - wants clear skin
Americans - wants healthy hair
Demand: Want for a specific product backed up by ability and
willingness to buy.
e.g. - Need – cosmetic product
Want – hair shampoo+conditioner ……but able to get only shampoo
Therefore, demand is for shampoo
2. MARKETING MANAGMENT
Marketers cannot create needs. Needs preexists. Marketers can
influence wants. This is done in combination with societal influencers.
Demand influenced by making product-
APPROPRIAT
ATTRACTIVE
APPROACHABLE/AFFORDABLE
AVAILABLE EASILY
To target consumers (4 P’s) – Product/ Promotion/ Price/ Place
PRODUCTS- GOODS/ SERVICES/ PLACE
Product is anything that can satisfy need/ want.
Product component-
1. Physical Good.
E.g. Face cream, shampoo, hair oil etc
Physical Good – cosmetic material
Along with products loreal also have their saloons/parlour
Hence, in marketing, focus is on providing/ satisfying service rather
than providing only products.
VALUE/ COST/ SATISFACTION
Decision for purchase made based on value/ cost satisfaction delivered
by product/ offering.
Product fulfills/ satisfies Need/ Want.
Value is products capacity to satisfy needs/ wants as per consumer’s
perception or estimation.
Each product would have a cost/ price elements attached to it.
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3. MARKETING MANAGMENT
Need – beauty
Method/ Products- Satisfaction – Estimated by the result or its effect
VALUE- Products capacity to satisfy.
COST- Price of each product.
EXCHANGE/ TRANSACTION
To satisfy need/ want, people may obtain the product through
- Self Production
- By force or coercion
- Begging
- Exchange
EXCHANGE: – The act/ process of obtaining a desired product from
someone by offering something in return. For exchange potential to
exist, the following conditions must be fulfilled.
TRANSACTION: – Event that happens at the end of an exchange.
Exchange is a process towards an agreement. When agreement is
reached, we say a transaction has taken place.
Proof of transaction is BILL/ INVOICE.
Monetary Transaction- money is paid for the product
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4. MARKETING MANAGMENT
Type Société Anonyme
Industry Personal care
Founded 1909
Founder(s) Eugène Schueller
Headquarters Clichy, Hauts-de-Seine,France
Area served Worldwide
Key people Jean-Paul Agon (Chairman and
CEO), Liliane Bettencourt (Non-executive
director and major shareholder) Natalia
Streignard
Products Cosmetics and beautyproducts
L'OREAL - BUSINESS POLICY AND STRATEGY
27 GLOBAL BRANDS
130 COUNTRIES
68 900 EMPLOYEES
613 PATENTS FILED IN 2011.
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5. MARKETING MANAGMENT
INTRODUCTION
L’Oreal group, founded in 1909, by Eugène Schueller, a
young French chemist today is the world's largest cosmetics and Beauty
Company. Headquartered in Paris, and by now the company is one of
the leaders in the beauty market while providing a wide variety of
products for each segment of its market tailored to meet expectations of
its customers.
L’Oréal does and has always have believed in the strategy
on innovation and diversification. Due to the products’ uniqueness,
L’Oréal’s product became well-known and popular among all ethnic
groups, not depending on gender.
MISSION
The company’s mission is to promote an approach to beauty
that is fun, affordable, fulfilling, genuine and generous while meeting all
stakeholders’ expectations by providing a portfolio of deeply diversified
range of products. (L’Oréal Group 2007)
VALUES
Striving For Excellence: L’Oréal is trying to enchant the
brand portfolio with continuously innovating products while meeting all
standards set for quality and safety.
Passion for adventure: their expertise drives their passion for new
discoveries and
innovation in cosmetics.
Enrichment through diversity: understanding and valuing each
individual is an essential part of their corporate culture. Their staff
members come from many different backgrounds and work together to
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6. MARKETING MANAGMENT
offer a full range of products through varied distribution channels.
Valuing individual talent: they are dedicated to enhancing the well-
being of their consumers; they also ensure that each employee has the
opportunity to develop his or her potential through personal and
professional growth.
Leading innovation in beauty: research, sensitivity to consumer needs,
know-how and expertise are as essential as intuition. Building on their
unrivalled experience and expertise, fundamental research is a specific
focus of investment that drives creativity and contributes to developing
the cosmetics of tomorrow.
Vision:
“A company that is highly successful economically.
A company where people are enthusiastic about going to work.
A company that respects the environment and acts...
DISTRIBUTION
ITALY, AUSTRIA and HOLLAND
Later US, RUSSIA and FAR EAST
Now present worldwide
Found in all major drug stores, supermarkets, beauty salons and
even direct mails
Since 2009, the company has more than doubled distribution
reach - from 250,000 outlets to 600,000
PROMOTIONAL STRATEGY
Promotional posters
Launch of beauty magazines for women Votre Beaute
Clean children campaign
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7. MARKETING MANAGMENT
Creation of jingles be nice & clean, smell good for dop shampoo
Advertising through film commercials
Selecting local brand ambassadors
Open spa to promote brand
Advertising campaign because I am worth it
POSITIONING STRATEGIES
Most Innovative
High quality
Advanced products
Affordable price
Only cosmetic brand in the world that has products in all
segments consumer, luxury, professional and pharmacuetical
DISTRIBUTION STRATEGY
Through agents and consignments to US, SouthAmerica, Russia,
Far-East
CONCENTRIC DIVERSIFICATION
Hair color
Styling aids, cleansers, fragrances, body and skin cosmetics etc.
HORIZONTAL INTEGRATION
Acquisition of Maybelline, red ken, Ralph Lauren, Soft Sheen
Carson
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8. MARKETING MANAGMENT
MARKET DEVELOPMENT STRATEGY
Develop strategies for Maybelline lipstick in Japan
RELAUNCHING BRANDS
Relaunched Helena and Rubinstein skin care and cosmetic brands
HITTING THE RIGHT AUDIENCE WITH RIGHT
PRODUCT
CONGLOMERATE DIVERSIFICATION AND JOINT
VENTURE STRATEGY
L'Oreal joint venture with Nestle.
INDIAN BRAND AMBASSADORS
AISHWARYA RAI BACHCHAN SOONAM KAPOOR
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9. MARKETING MANAGMENT
GRAPHS DESCRIBING THEIR STRATEGY
GEOGRAPHIC ZONE %
geographic zone
40 31
30 24
20
20
13
10
9
0
Asia, Pacific Western
North
Europe Latin
America Eastern
America
Europe
Geographical distribution of products/ demand for products
PRODUCT CATEGORY %
product category
31
35
30 25
25
20 17
15 14
10 12
5
0 1
Concentration on different product category
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10. MARKETING MANAGMENT
DIVISION %
division
60 52.1
50
40
30 25.5
20 14.9
10
7.2
0
Consumer
Luxury
Products Professional
Products Active
Products
Cosmetics
Products distributed in different status
BUSINESS SEGMENT %
Sales
27.9
30
25 21.5 21.3
20
15 14.6
10 9.8
5
4.9
0
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12. MARKETING MANAGMENT
CONCLUSION
L’ORÉAL is the world market leader in cosmetics
innovative and invest a lot of money in research and development
Products are positioned in the high-priced segment because of
their quality
They offer well coordinated products for different target groups
To keep their strength alive they have to observe their
competitors like PnG and UNILEVER
-Thank you
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