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1. L’ORÉAL
M A R K E T I N G A N D B R A N D I N G O F
P R O J E C T S M I N I P R O J E C T
S U B M I T T E D B Y : J A N H A V I K H A I R N A R M B A 2 2 K 1 4

2. FINANCIAL PERFORMANCE: 2022
L'ORÉAL IS A GLOBAL LEADER IN THE COSMETICS INDUSTRY,
WITH A PORTFOLIO OF OVER 35 INTERNATIONAL BRANDS,
INCLUDING L'ORÉAL PARIS, LANCÔME, MAYBELLINE,
GARNIER, AND ESSIE.
38.26Bn euros sales in 2022, +18.5% reported growth
+6% Beauty market growth
Social and environmental performance: 97% of group projects are eco
designed
Over 1.1Bn euros invested in research and innovation
40Mn uses of digital services
6.5+ Bn products sold in more than 150 countries

3. COLLABORATORS
Dupont: Dupont supplies a
variety of ingredients to L’Oreal,
including pigments, polymers,
and surfactants.
Givaudan: Givaudan is a leading
supplier of fragrances to L’Oreal
Aptar: Aptar is a leading supplier
of packaging solutions to L’Oreal
SUPPLIERS DISTRIBUTORS RESEARCHERS
L'Oréal sells its products through
a variety of channels, including
mass retailers, department
stores, and e-commerce
platforms. Some of L'Oréal's key
distributors include:
Walmart
Amazon
L'Oréal collaborates with a
number of research institutions
and universities to help develop
new products and technologies.
Some of L'Oréal's key research
partners include:
Stanford Universit
MIT
University of Oxford

4. CUSTOMERS
L'Oréal's customers span all ages, genders, and socioeconomic groups. The company offers a wide range of
products to meet the diverse needs of its customers, from mass-market brands to luxury products. L'Oréal is also
increasingly targeting its marketing efforts towards millennials and Generation Z.
SOM
TAM
SAM

5. L'Oréal faces a number of competitors in the
global cosmetics industry, including
Unilever, Procter & Gamble, and Estée
Lauder. These companies have strong brand
portfolios and global reach, and are
constantly innovating to develop new
products and technologies. L'Oréal is also
facing increasing competition from new
entrants, such as direct-to-consumer
brands.
COMPETITORS

6. Regulation and Compliance
Product safety and ingredient disclosure regulations
Stricter rules on animal testing
International Trade Policies
Vulnerability to tariffs, trade wars, and restrictions
Impact on supply chain, cost structures, and market access
Political Environment Stability
Political unrest and regime changes can disrupt operations
Potential for market uncertainties and asset seizures
Animal Testing Bans
Adapting R&D practices to comply with bans
L'Oréal ceased animal testing in 1989
Government Initiatives
Impact of initiatives promoting sustainable or local products
Potential incentives or challenges for foreign companies
Geopolitical Tensions
Tensions affecting supply chain and market access
Consideration of geopolitical risks in key operational areas
Public Health Policies
Impact of government responses during health crises
Consideration of sales and operational implications (e.g., COVID-19)
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PESTLE
ANALYSIS
Political

7. Economic Growth
Impact on consumer disposable income
Sales affected by economic downturns
Exchange Rates
Global revenue susceptible to currency fluctuations
Strong Euro affects competitiveness outside Eurozone
Inflation and Interest Rates
Inflation influences raw material, production, and distribution costs
Interest rates impact borrowing costs and financing opportunities
Unemployment Rates
High unemployment reduces consumer spending
Affects labor costs and availability for the company
Raw Material Prices
Fluctuations in prices of cosmetic raw materials
Impacts production costs for L’Oréal
Global Supply Chain Factors
Economic disruptions affect product and raw material availability
Impact on the cost structure of L’Oréal’s supply chain
Retail and E-commerce Dynamics
Economic shifts influence consumer buying patterns
Downturns may lead to more price-sensitive shopping and increased e-
commerce activity
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PESTLE
ANALYSIS
Economic

8. Changing Beauty Standards
Adapting products to evolving cultural perceptions
Staying attuned to shifts in attractiveness and desirability
Diversity and Inclusion
Meeting demand for inclusive products
Ongoing efforts to cater to diverse skin tones and hair types
Aging Populations
Tapping into the growing market for anti-aging products
Developing cosmetics tailored for older consumer needs
Sustainability and Ethical Consumption
Aligning with consumer preferences for sustainable and ethical products
Influencing brand image and consumer trust through commitment
Gender Roles and Expressions
Adapting product lines to changing views on gender norms
Addressing the market for gender-neutral beauty products
Cultural Traditions
Respecting and understanding regional beauty rituals
Potential for offering culturally tailored products
Health and Wellness Trends
Meeting demand for products linked to overall health and wellness
Catering to consumers seeking beauty with health benefits
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PESTLE
ANALYSIS
Sociocultural

9. Digital Transformation
Leveraging e-commerce, mobile apps, and AR experiences
Offering virtual try-ons and personalized online shopping
Research & Development
Investing in biotechnology, chemistry, and materials science
Staying at the forefront of beauty innovation
Artificial Intelligence (AI) and Data Analytics
Utilizing AI for consumer insights and tailored marketing
Anticipating trends and optimizing marketing efforts through data analysis
Supply Chain Management
Implementing IoT and blockchain for traceability and efficiency
Ensuring authenticity and quality of raw materials
Sustainable Technologies
Adopting green chemistry, eco-friendly packaging, and waste reduction
Enhancing environmental credentials through sustainable practices
Production Automation
Implementing automated and robotic systems in manufacturing
Increasing production efficiency, maintaining product quality, and
adapting to demand changes
Interactive Marketing
Utilizing AR and VR for immersive marketing campaigns
Engaging consumers through novel interactive experiences
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PESTLE
ANALYSIS
Technological

10. Sustainable Sourcing
Monitoring and ensuring ethical sourcing of raw materials
Collaborating with suppliers and rethinking product formulations
Waste Management
Implementing packaging innovations and recycling initiatives
Strategizing for waste reduction to minimize environmental impact
Water Usage
Efficient water use and wastewater treatment in manufacturing
Sustainable water sourcing, especially in water-scarce regions
Carbon Footprint
Active reduction of carbon emissions through renewable energy use
Implementing energy efficiency measures and sustainable practices
Biodiversity Conservation
Ensuring sourcing practices do not endanger ecosystems or species
Responsible practices for ingredients from specific environments
Consumer Demand for Green Products
Meeting eco-conscious consumer preferences
Offering environmentally friendly products in formulations and
packaging
Animal Testing and Cruelty-Free Products
Maintaining and communicating commitment to cruelty-free practices
Aligning with the global movement against animal testing
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PESTLE
ANALYSIS Environmental

11. Regulations on Ingredients
Compliance with varied ingredient regulations across countries
Adapting products to meet market-specific ingredient lists and restrictions
Animal Testing Laws
Navigating diverse global regulations on animal testing
Compliance considerations when launching products in different markets
Intellectual Property Rights
Protecting patents, trademarks, and copyrights
Ensuring registration and robust defense against infringements
Advertising and Marketing Regulations
Adhering to diverse regional regulations on advertising claims
Ensuring marketing campaigns meet local standards and avoid
misinformation
Environmental and Sustainability Laws
Aligning operations, products, and supply chain with sustainability regulations
Adapting to evolving legal mandates on environmental practices
Labor and Employment Laws
Compliance with local labor laws worldwide
Addressing aspects such as minimum wages, working conditions, and workers'
rights
Health and Safety Regulations
Ensuring product compliance with health and safety standards
Conducting specific testing, quality checks, and obtaining certifications
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PESTLE
ANALYSISLegal