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Pooja N Maheshwari

73
Amod Mungekar
Isha Mongia
76
Shradda Shukla
Overview Of L’Oreal
L’OREAL Group - worlds largest
cosmetics and beauty company
Founded in 1909 by Eugene
Schueller
Controlled by founder’s
daughter Lilliane Bettencourt
and the Swiss food company
Nestle
L’Oreal belongs to Cosmetic
Industry
Overview Of L’Oreal
C.t.d..
L’Oreal has explored the fields
of color cosmetics, hair care,
hair color, skin care, sun
protection, and perfumes.
L’Oreal is also active in
dermatological and
pharmaceutical field, which
makes L’Oreal the top
nanotechnology patent-holder
in United States
L’Oreal has global market
share of 17%
Brand Under L’Oreal
Brands are generally
categorized by their targeted
markets
Cosmetics are divided in
different segments as:
Consumer Division
Professional Division
Luxury Division
Active Cosmetics
L’Oreal India
L’Oreal entered Indian market
in 1990, in partnership with
MU group with the Ultra Doux
range of hair care products
 In 1994, L’Oreal set up its
wholly-owned subsidiary for
marketing its consumer
products in India
L’Oreal has set up its own
manufacturing plant in Pune,
Maharashtra
L’Oreal Paris Lip Color
Product Personality
L’Oreal Paris is a women who is:
Well educated
Confident
Women of substance
An achiever
Clear about her goals in life
Gives high regard to herself
and wants the best for herself
Product Analysis
Brand Name: L’Oreal Paris
Utility: Lip Care
Price:
Lip Color:
Rs560- Rs700
Lip Stic: Rs
700
Liquid Lip Color:
Rs800
Weight:
Product Analysis
C.t.d….
Shape:
Lip Color: Round,
Rectangle
Lip Stic: Round
stick
Quality: Good
Styling:
Lip Color: Round
exterior cover
Lip Stic: Pen
shaped Cover
Market Presence
Market share:
Total Lip Color market in India
is 400 crore
L’Oreal Lip color market is 75 –
100 crore
L’Oreal Paris Lip Color has
approximately 20%-22%
market share in India
World market share of L’Oreal
Paris lip Color is 5.3%
Market Presence
Product Life Cycle:
L’Oreal Paris is at the second
phase of the growth stage:

Saleshas increased at 40%


growth rate
Spends heavily on advertising
Market Presence
C.t.d…
L’Oreal as compared before is
more widely available
It has been constantly launching
new ranges in Lip color
Many new international players
have entered in market in past
few years
Market Analysis
Market Segmentation:
Demographics:
Sex: Women
Age: 27 and above
Market Analysis
C.t.d…
Psychographics:

Social Class: Upper Middle


Class
Personality: Confident, well
educated
woman of
substance.
Life Style: Standard of
Living is high
Likes to
socialize
Market Analysis
C.t.d…
Price:
L’Oreal Paris Lip color varies
from Rs 550- Rs 800
Positioning:
Has positioned itself as high
end brand in consumer division
and also as affordable luxury
Distribution:
Distributed through prestige
stores and broad distribution
channel
Market Analysis
C.t.d…
Promotion:

It promoted through various


magazines, television
advertisement.
Entered in direct marketing
strategy by contacting
consumers via email
Also initiated online Beauty
Club as a loyalty program to
conduct polls and get their
Competitors Analysis
L’Oreal Paris faces major
competition from:
Revlon
Chambor
Sampling
Done cluster sampling for
L’Oreal Paris Lip color
Cluster sampling is sample of
respondents chosen from
specific areas of the city or the
town
Taken sample of respondents
from South Mumbai
L’Oreal Paris does not conduct
any kind of Sampling
Data Interpretation
 Sample of 50 correspondents
Forecasting
Product Launch
L’Oreal Paris will be launching
few new products in lip color
segment which is currently in
pipeline
Forecasting
C.t.d…
Competitors:

Revlon:
Revlon - planning to increase
its distribution network and to
invest in more of research
Chambor:
Baccarose - the distributer for
Chambor, will continue its
direct marketing strategy
Re-Launching
L’Oreal Paris Lip color
Reasons for Re-Launch
Brand Awareness
Increase sales
Improvise marketing strategy
Conducting Advertising
Campaign
Advertising Campaign
Have extensive campaign for
L’Oreal Paris Lip Color
Will go for television
advertisement
Will also have out of home
advertisements like hoardings,
at malls on digital screen
Marketing Strategy
Distribution:
Will widen distribution network
by giving various incentives to
distributers, retailers, stockiest
etc in order, not to loose self
space
Product Modification:
Will be modifying the product
by adding SPF, so that lips can
be protected from harmful
Marketing Strategy
C.t.d…
Promotion:
Will be distributing
complementary lip care guide
on purchase of worth Rs 1000,
that will have tips on how the
various brand ambassadors of
L’Oreal Paris apply Lip Color on
themselves and how they take
care of their lips
Will be sponsoring and
Marketing Strategy
C.t.d…
Social Responsibility
L’Oreal will support campaign
for safe cosmetics which was
started in October 2007
This will help in building
consumer confidence, that
L’Oreal Lip color is safe
Product Life Cycle Post
Re- launch