2. Q.1) What is beauty product?
Ans. Beauty products or cosmetic products as they are more popularly known as are products that help
to enhance one’s outer appearance. They are, essentially preparations externally applied to change or
enhance the beauty of skin, hair, nails, lips, and eyes.
• When it comes to buying a beauty product what people are actually buying?
• Today the usage of beauty products varies from one geographic region to another as well as from one
gender to another as well as within genders. It also varies from product type and range to another.
3. Q.2) When L’Oreal used to acquire a beauty company, what they
are actually buying?
Ans. L'Oréal's competitive strategy was to be a top contender in each of the various beauty divisions.
• By acquiring brands like Redken, Matrix, Maybelline, Ralph Lauren, and Kiehl's, L'Oréal filled in the
different beauty divisions.
• Having brands that met the consumer needs in each beauty division wasn't enough for L'Oréal; they
wanted to make sure that they had significant sales for each brand in each division.
• They configured products that were constantly evolving to meet the changing looks, needs, and
preferences of consumers. They also fought to gain competitive advantage in product placement in
stores
4. Q.3) Why L’Oreal was reluctant to develop their own brands?
Ans. L’Oreal always focused on acquiring companies or brands with a good market share
• Apart from acquiring these big brands. L'Oréal also focused on acquiring few local brands, but in that
case as well these local brands had good distribution channels which would have been difficult to
access by L'Oréal otherwise. Thus, it did an analysis on the brands before acquiring. by finding out the
brands strengths and if there a failure story attached to it, tried to find why brand lost its focus and how
it can be revived upon collaborating with L'Oréal
• Hence, looking at the past success stories of these brands and finding out the failure reason,
analyzing the strengths and weaknesses of each acquisition it was possible for L'Oréal to know the
global potential of each acquisition decisions it made
