Company Focus

L’Oréal
Multi-Brand Architecture
The L’Oréal Group, one of the world’s leading cosmetics conglomerates, serves as an astounding example for the
study of brand architecture, with its amazing maze of brands and sub-brands in a diverse range of beauty and
personal care products. Over the years, L’Oréal has acquired a number of companies, thus bringing into its fold
numerous “corporate brands.” Each of these corporate/umbrella brands in turn has several range or line brands and
sub-brands in various product categories. Several of the companies have overlapping products, but are positioned
differently so that the L’Oréal Group as a whole reaches out to the widest possible range of consumers across all
market segments. Keeping the individual corporate brand names distinct helps the Group address the premium, mid-
range and economy markets simultaneously, without facing the problems of brand dilution and customer confusion.

Introduction

Brand Architecture
Brand Architecture refers to the way
a company structures its brands.
Some of the strategic issues that
brand architecture addresses are:
handling of acquired brands, inte-
gration of various brands, choice be-
tween umbrella and individual
brands, and the structuring of brands
as part of the marketing mix. The
type of brand architecture that a
company would follow depends on a
variety of factors including depth
and breadth of the product mix, the
extent of geographic coverage, the
product category, characteristic buy-
© iupindia.org
ing behavior, if any, and so on. Here,
we look at how L’Oréal has devel-
oped its brand architecture and used
it as a strategic tool for nurturing a which soon afterward became try, i.e., France. L’Oréal is known as a
large and successful global business. L’Oréal. By the 1920s, the company house of diverse corporate and um-
had extended its business to a num- brella brands which include L’Oréal
The Origins of L’Oréal ber of countries in Europe, North and Paris, L’Oréal Professionnel, Garnier,
L’Oréal’s story began in 1907 when South America, the erstwhile Soviet Maybelline, Matrix, Biotherm,
Eugène Schueller, a young chemist, Union and the Far East. RedKen, SoftSheen Carson,
formulated the first synthetic hair Lancôme, Helena Rubinstein,
dyes in his kitchen, and sold them to A Plethora of Brands Cacharel, Shu Uemura, Giorgio
hair salons in Paris under the brand Currently, the L’Oréal Group has op- Armani, Ralph Lauren, Vichy and
name Auréole. Within two years, he erations in over 130 countries and many others. Each of these umbrella
established the Société Francaise des more than 80% of the Group’s sales brands, in-turn has under its fold nu-
Teintures Inoffensives pour Cheveux, are generated outside the home coun- merous range, line and product

MARKETING MASTERMIND 55 March 2008

© 2008 The Icfai University Press. All Rights Reserved.
Company Focus
Exhibit 1: L’Oréal’s Multi-brand Matrix Architecture Showing the Major Master Brands
Consumer Products Division
† L’Oréal Paris
† Garnier
† Maybelline New York
† SoftSheen Carson
† Le Club des Créateurs de Beaute
Professional Products Division
† L’Oréal Professionnel
† Kérastase
† RedKen 5th Avenue NYC
† Matrix
† Mizani
brands. In effect, the brand architec-
ture that we have is what one may
call a multi-brand matrix, with a hi-
erarchy of brands which target differ-
ent groups and levels of clientele (Re-
fer Exhibit 1).
Multi-brand Matrix Architecture
Under Four Groups
The L’Oréal Group’s business is
broadly classified under three divi-
sions – the Consumer Products, Pro-
fessional Products and Luxury Prod-
ucts divisions; and one department –
the Active Cosmetics department.
The Consumer Products Division
offers a range of competitively priced
hair care, skin care, make-up and
perfume products. The most promi-
nent international brands in this divi-
sion are — L’Oréal Paris, Garnier,
Maybelline New York, SoftSheen
Carson and Le Club des Créateurs de
Beaute. These are distributed
through mass-market retail outlets.
The Professional Products Divi-
sion serves hairdressers by providing
products to meet the requirements of
salon professionals and salon cus-
tomers. There are five major
R Harish, Faculty Member, The Icfai Business School, Bangalore. The author can be
MARKETING MASTERMIND
Luxury Products Division
† Lancôme † Giorgio Armani
† Biotherm † Ralph Lauren
† Helena Rubinstein † Cacharel
† Kiehl’s † Victor & Rolf
† Shu Uemura † Diesel
Active Cosmetics Department
† Vichy
† La Roche-Posay
† Innéov
† SkinCeuticals
umbrella brands under this division -
L’Oréal Professionnel, Kérastase,
RedKen 5th Avenue NYC, Matrix and
Mizani.
The Luxury Products Division of-
fers up-market premium products to
consumers. The major master brands
are—Lancôme, Biotherm, Helena
Rubinstein, Kiehl’s and Shu Uemura.
The world’s top perfume brand like
Giorgio Armani, Ralph Lauren,
Cacharel, Victor & Rolf and Diesel
also form part of this division. This
division’s products are mainly sold
through department stores, travel re-
tail outlets, perfumeries, and the re-
spective brands’ own boutiques.
The Active Cosmetics Department
offers skin care, sun care, hair care
and make-up products. It has three
prominent brands under its fold—
Vichy, La Roche-Posay and Innéov
plus the SkinCeuticals range. These
products are sold through pharma-
cies and specialist retailers. They of-
fer consumers proven safety and ef-
fectiveness, supported with profes-
sional advice from pharmacists and
dermatologists.
Author’s Profile
reached at harishr58@gmail.com
56 March 2008
That L’Oréal has divided its busi-
ness into product-based divisions,
rather than dividing it on geo-
graphic basis clearly indicates that
it is the products and brands that
form the focus of the business and
not geographic regions. This ap-
proach lays the foundation for a
brand architecture, wherein um-
brella and range brands play an im-
portant role.
Analysis of the Brand
Architecture Design
Divisional Architecture Based
on Target Markets
L’Oréal has classified its business into
different divisions based primarily on
the target market segments, rather
than on product categories. The
brand architecture is designed in
such a way that different umbrella
brands are focused on each segment,
thereby creating synergy, clarity and
leverage, in spite of apparently hav-
ing several competing brands in the
same product categories. Consumers
from diverse socioeconomic and cul-
tural backgrounds are thus able to
find products suitable to their tastes
and spending power, without conflict
or confusion.
Focus on Distinct Identity and
Image of Individual Brands
L’Oréal also focuses regularly on
strengthening the meanings of its
brands and fully exploits the advan-
tages which are rooted in the indi-
vidual brands. L’Oréal has established
distinct identity, image and signage
for each of its brands so as to build a
close relationship with the relevant
target markets. For example, custom-
ers have come to associate Lancôme
with stylish combination of elegance,
charm and daring. Helena Rubinstein
is perceived as a cosmetics pioneer,
which combines cutting-edge science

with the art of femininity, glamour,
high-performance and luxury. Garnier
fulfills the aspiration of natural beauty
for the masses.
Emphasis on Cultural Origins
and Diversity of the Brands
L’Oréal embodies cultural diversity
and captures the cultural cachet of
different countries in its brands.
Many of L’Oréal’s star brands are
from different cultures, whose dis-
tinct identities and cultural origins
have been promoted to advantage
by the company. This marks a con-
scious departure from the common
practice of multinationals trying to
harmonize and standardize their
products and brands for global mar-
kets.
The most prominent example is
that of Maybelline New York, whose
cultural association with its country
of origin was strengthened by L’Oréal
after its acquisition. As a result,
Maybelline’s sales rose dramatically.
It was also pushed into more than 90
countries, positioned as an
aspirational brand from the US. It
soon became a stylish global brand
for women all over the world, from
being merely a regional brand ear-
lier. Currently, around 50% of
Maybelline’s sales revenue comes
from outside the US.
L’Oréal’s brand architecture pro-
vides a platform for a diverse variety
of brands by letting each brand re-
tain its specialty and specific target
markets; while at the same time fit-
ting into the overall brand matrix.
While retaining umbrella/range
brands as endorsers, many individual
brands are promoted under various
products.
Leveraging Core Technology
Platforms Across Brands
L’Oréal has a strong research and de-
velopment network. Its innovations
MARKETING MASTERMIND
always begin at the top with luxury
brands, which are then modified to
penetrate downwards into different
price levels and markets. The devel-
opment of multiple products on the
same technology platform reduces
the overall cost. The company thus
takes advantage of spreading the
benefits of a strategic investment
across different product divisions. For
example, L’Oréal first introduced a
break-through anti-ageing formula
in 1986 under the prestigious
Lancôme stable, as Lancôme
Niosôme. This was then imple-
mented under the Vichy brand and
eventually extended quite success-
fully to the consumer products divi-
sion as L’Oréal Plenitude. Leveraging
core technology platforms across
brands, thus optimizing on develop-
mental cost and reducing wastage of
resources, is an important factor in
successfully managing a complicated
brand architecture having a multi-
tude of brands marketed widely
across the world.
Aligning the Brand Architecture
with the Marketing Mix
Brand architecture is a sub-set of the
larger view of the marketing mix. It
is closely allied with the marketing
practices and distribution channels.
Each product division has many
brands and sub-brands, and their dis-
tinct identities are maintained
through conspicuously different
packaging, image and advertising.
The luxury brands are sold strictly in
selected up-market outlets. Profes-
sional products are sold through sa-
lons and hair dressers. Active cosmet-
ics products are distributed through
pharmacists. The products which
generate maximum revenues—the
consumer products—are sold
through mass market retailers such
as super markets and department
stores.
57 March 2008
L’Oréal
L’Oréal also adopts different ad-
vertising and promotional methods
according to the brand’s position in
the market. The mass brand
Maybelline is promoted mainly
through TV advertising and brand
ambassadors. La Roche-Posay, the
brand positioned at solving skincare
problems, is promoted through der-
matologists, skincare specialists and
professional beauty salons. L’Oréal
Paris relies to a significant extent on
public praise by professional cosmet-
ics consultants.
L’Oréal has created a brand ma-
trix with a strong power of integra-
tion. Thus, new brands merge into
the existing structure taking full ben-
efit of available resources, related to
both technology and marketing.
The company leverages upon the
strength of its brands and advertises
brands rather than the products. It
focuses on building a strong relation-
ship between the brands and the mar-
ket segments that they are targeted
at. In effect, L’Oréal emphasizes on
brands rather than on product fea-
tures, and thus uses brands as strate-
gic marketing tools. The value of a
brand lies in its ability to be hedonis-
tic. It also reduces perceived risk and
generates much more customer value
as compared to an equivalent prod-
uct, which too may otherwise have
the same level of utility, quality and
various tangible features.
Integrating Acquired Brands
into the Brand Architecture
Firms that aim for strengthening
their market position internation-
ally, tend to make acquisitions and
hence bring in new brands into their
brand architecture. L’Oréal has con-
tinuously pursued the strategy of ac-
quiring well-positioned brands in
related businesses, from different
geographic regions. The acquisition
of the American brand Maybelline
Company Focus

and the Japanese brand Shu Exhibit 2: L’Oréal’s Consumer Products Division – Major Master Brands
Uemura are prominent examples.
This strategy also helps compete ef-
fectively with strongly entrenched
local brands and gain access to lo-
cal distribution channels in different
markets.

Competing Brands Within the

Group Help Beat the Competition
While it is true that multiple brands
in the same category are aimed at
different market segments, it is
equally true that some brands do
compete with each other. L’Oréal is at
times described as a federation of
competing companies. For example,
L’Oréal Paris and Maybelline New
York are prima facie quite different –
the former has distinct sophistication
and supreme elegance, while the lat-
ter is a street smart value-for-money
brand for the younger generation. But
the two do compete with each other to
varying degrees in different markets.
Having multiple self-competing
brands is a sure-shot way of maintain-
ing creativity in a large and geo-
graphically dispersed multinational
firm. This would ensure that different
research centers and marketing
groups are constantly on their toes
and try to beat each other. While they
do so, they also beat the competition.
Moreover, the so-called compet-
ing brands often serve as flanking
brands for the lead brand in a cat-
egory. By offering alternative brands
to meet the needs of various market
segments, the company tries to retain
different categories of customers in
its fold, who may otherwise have
flocked to competitors’ brands.
A Complex Hierarchy of
Umbrella, Range, Line and
Product Brands
L’Oréal has acquired numerous com-
panies and has many subsidiaries –
big and small, in different parts of
Source: http://www.lorealv2.com/_en/_ww/brands/consumer_products/index.aspx
Exhibit 3: L’Oréal’s Professional Products Division – Major Master Brands
Source: http://www.lorealv2.com/_en/_ww/brands/professional_products/index.aspx
the world. It has quite a complicated businesses that they are in and the
brand architecture with numerous key line/product brands thereunder,
corporate/umbrella brands, range are described briefly in the follow-
brands, line brands and product ing sections. The material is pre-
brands. For example, L’Oréal Paris is sented under four headings—Con-
an umbrella brand that has a num- sumer Products, Professional Prod-
ber of range brands, one of which is ucts, Luxury Products and Fra-
Dermo-Expertise. Under Dermo-Ex- grances, and Active Cosmetics; con-
pertise, one has several line brands sidering around 20 master/um-
and product brands such as Pure brella brands.
Zone, HydraFresh, Happyderm,
Nutrissime, Refinish and Renoviste. Brand Architecture -
The umbrella/range brands often Consumer Products
serve as endorsers for the line/prod- L’Oréal Paris
uct brands in advertisements and The French brand, L’Oréal Paris, of-
on the packages. The L’Oréal Group fers a comprehensive range of beauty
has over 500 brands in all. A com- and personal care products for both
plete and technically precise expo- men and women. It includes products
sition of L’Oréal’s brand architec- for skin care, hair care, hair color-
ture and brand portfolio would ing, make-up and styling. There are
therefore become very lengthy. Con- several range brands under L’Oréal
sequently, only the major umbrella/ Paris such as Elsève, Studio-Line,
range brands (which in most in- Dermo-Expertise and others. In turn,
stances correspond with the names under each range brand, there are
of various companies belonging to many sub-brands for specific prod-
the L’Oréal Group), the principal ucts and product lines.

MARKETING MASTERMIND 58 March 2008


Garnier
The Garnier portfolio (under the sub-
sidiary – Laboratoire Garnier Paris)
includes four product lines:
† Garnier Fructis - hair care
products
† Garnier Nutritionist - skin
care products
† Garnier Ambre Solaire for
sun protection, and
† Garnier Nutrisse for nourish-
ing and safeguarding hair color.
Maybelline New York
Maybelline came into commercial
existence with the introduction of
the first modern mascara in the
American market way back in 1917.
Great Lash, launched in 1971 in the
US, continues to remain one of its
best selling sub-brands to this day.
Comparatively recent additions such
as XXL Volume+ Length Mascara
and DreamMatte Mousse have been
quite successful. The Maybelline
portfolio now includes more than
200 products and is available in
over 90 countries.
SoftSheen Carson
SoftSheen Carson, formed in 2000 by
the merger of Carson and SoftSheen
companies of the L’Oréal Group, is
the front-runner in hair care products
for persons of African descent. The
merging companies—SoftSheen and
Carson were originally founded in
1901 and 1964 respectively.
SoftSheen was a hair care products
company targeted at African-Ameri-
can women. The Dark & Lovely no-
lye hair relaxer is one of the most
popular brands from SoftSheen
Carson. The other key product and
line brands are – Optimum Care,
Optimum Crème HairColor with
Ionene G, Optimum Multi-Mineral
Relaxer, Optimum Oil Therapy, Let’s
Jam, Magic and Wave Nouveau Coif-
fure Permanent Wave with Tri-Fusion
MARKETING MASTERMIND
Technology. While majority of these
products are for retail sale, some are
meant for professional use.
Le Club des Créateurs de Beaute
Le Club des Créateurs de Beaute or
CCB Paris is the direct selling arm
which offers a range of affordable
beauty products and programs to
women in several countries through
telephone, internet, catalog and di-
rect mail.
To locate the above said master
brands in L’Oréal consumer products
refer Exhibit 2.
Brand Architecture -
Professional Products
L’Oréal Professionnel
L’Oréal Professionnel includes a
range of products for hairstylists and
colorists. The products are developed
in close collaboration with hair
dressers, and include:
† Color Products: Majirel,
Diacolor, Luo Color, Platinium, etc.
† Hair Styling Products:
Tecni.Art, Série Expert, X-Tenso
(for long lasting hair straighten-
ing) and Dulcia perm lotion.
Kérastase Paris
The Kérastase hair care products
were first introduced in 1964. They
comprise a variety of luxury and
aspirational hair care products that
are sold for professional use by ser-
vice providers through salons and
spas across the world. The Kérastase
Collection comprises around 50 dis-
tinct products to address a wide
range of hair care needs such as
nourishing, revitalizing, recharging,
curling, smoothening, blowing/ex-
panding, sculpting, color protection,
etc. It includes six line brands de-
signed for different types of hair –
Nutritive, Reflection, Dermo-Calm,
Resistance, Specifique and Soleil.
59 March 2008
L’Oréal
RedKen 5th Avenue NYC
RedKen, founded in 1960, is a hair
care brand dedicated to combining
scientific approach with beauty, and
is focused on continuing research
and development. It comprises sham-
poos, conditioners, styling products,
etc. The RedKen range encompasses
four product lines and many sub-
brands:
† RedKen Hair Care: All Soft,
Blonde Glam, Body Full, Clear
Moisture, Color Extend, Dandruff
Control, Extreme, Fresh Curls,
Smooth Down, UV Rescue
† RedKen Styling: This product
line comes in four categories –
Mild Control, Medium Control,
Maximum Control and Urban Ex-
periment. Some of the specific
sub-brands are – Rewind 06,
Quick Dry 18, Guts 10 and Rough
Paste 12.
† RedKen Color: There are three
categories under this product
line—hair color products for fash-
ion looks, natural looks and cov-
ering grey. Prominent sub-brands
are Shades EQ Equalizing Condi-
tioning Color Gloss and Color
Fusion Advanced Performance
Colorcreme.
† RedKen for Men: This is a line
of hair care products for men.
Matrix
Matrix was originally founded in
1980 for providing an extensive
range of professional products for
hair dressers. Matrix offers
affordably priced products together
with training programs for salon
professionals and also provides in-
salon marketing guidance and sup-
port. The key product and line
brands are Amplify, Biolage, Color
Smart, Color Sync, Curl Life,
Opti.smooth, Sleek.look 4-Step Pro-
fessional Smoothing System,
SoColor.beauty and Trix.
Company Focus
Mizani
The word ‘Mizani’ means balance in
Swahili. The Mizani range, launched
in 1991, comprises a superior line of
professional hair care products meant
for the people of African descent, sold
exclusively through salons.
To locate the above said master
brands in L’Oréal professional prod-
ucts refer Exhibit 3.
Brand Architecture –
Luxury Products and
Fragrances
Lancôme
Lancôme is a British luxury brand
offering an exclusive range of skin
care products since 1946. It was
bought by L’Oréal in 1965. The star
brands in the Lancôme range are:
† Skin care: Absolue, Blanc Ex-
pert, Hydra Zen, Primordiale,
Rénergie and Résolution
† Make-Up: Color ID, Flextencils,
Juicy Tubes, Photogénic and
Rouge Absolue
† Fragrances: Attraction,
Hypnôse, Miracle and Trésor.
Biotherm
Biotherm was founded in 1950 and of-
fers an extensive range of face care,
body care, sun care and skin care prod-
ucts for men and women. It was ac-
quired by L’Oréal in 1970. Many of
Biotherm’s products are based on a pat-
ented technology that uses an active in-
gredient extracted from thermal plank-
ton— a vitamin and mineral-rich natu-
ral product found in spring water. The
star sub-brands are: Age Fitness,
Aquasource, Biotherm Homme (i.e.,
Biotherm Men), Lime Peel Wrinkle Cor-
rector, Oléosource, Skin Loving Colors
Make-Up and Source Therapie.
Biotherm is priced 20% to 30% lower
than Lancôme and caters to a younger
age group. It focuses on pure skin care,
youth and freshness; with less emphasis
on anti-ageing and make up.
MARKETING MASTERMIND
Exhibit 4: L’Oréal’s Luxury Products Division – Major Master Brands
Source: http://www.lorealv2.com/_en/_ww/brands/luxury_products/index.aspx
Exhibit 5: L’Oréal’s Active Cosmetics Department – Major Master Brands
Source: http://www.lorealv2.com/_en/_ww/brands/active_cosmetics/index.aspx
Helena Rubinstein
Helena Rubinstein Inc. began its
journey in 1902 with a beauty salon
established by its eponymous
founder. It was acquired by L’Oréal
during the 1980s. The Helena
Rubinstein portfolio includes a so-
phisticated range of cosmetics fo-
cused on femininity and glamour.
The key brands are:
† Skin care: Collagenist, Life
Pearl and Prodigy
† Make-up: Color Clone, Full Kiss
and Lash Queen.
Kiehl’s
Kiehl’s was founded in 1851 as a
pharmacy. During the early part of
the 20th century, it offered herbal
and homeopathic medicines, over
the counter drugs, essential oils
and the first Kiehl’s brand name
products. Today, Kiehl’s offers skin
care and hair care products that
utilize unique, natural ingredients;
and the products are often “pre-
scribed” to customers by Kiehl’s
well-trained customer representa-
tives. The key brands are: Kiehl’s
Lip Balm, Abyssine Cream, Blue
Astringent Herbal Lotion and
Crème de Corps.
60 March 2008
Shu Uemura
Shu Uemura, a brand created in
1983 by a Japanese make-up artist
and skin care specialist of the same
name, is active in make-up, skin care
and professional tools. The brand re-
lies on quality sales outlets that pro-
vide high standards of service. The
important products are Shu Uemura
Cleansing Oils, Depsea Water,
Depsea Therapy, Eye Lash Curler, UV
Mousse Underbase and Beta-Glucan
skin care ranges.
Giorgio Armani (Fragrances)
Created by Giorgio Armani, the
Armani brand has a well-differenti-
ated line of fashion and personal
care products which meets a wide
range of consumer needs. The
Giorgio Armani fragrance was first
launched in 1982. The key sub-
brands in the fragrances category are
Armani Eau pour Homme, Armani
Mania, Acqua di Gio and the
Emporio Armani duos (Emporio
Armani He & She, Emporio Armani
White & Emporio Armani Night),
Sensi and Armani Code. The Giorgio
Armani cosmetics range is distrib-
uted exclusively through select de-
partment stores.

Ralph Lauren (Fragrances)
Ralph Lauren perfumes were origi-
nally introduced in 1978, and are
now a division of L’Oréal. The impor-
tant product brands are: Polo, Polo
Black, Ralph, Ralph Rocks, Romance
and Romance for Men.
Cacharel (Fragrances)
In the early 1960s, Cacharel was one
of the first design houses to introduce
ready-to-wear clothing as an alterna-
tive to couture designs. The brand was
extended to fragrances in 1978, with
the launch of the feminine perfume
brand - Anaïs Anaïs. The Cacharel
perfume range is now part of L’Oréal.
Other major fragrance brands under
the Cacharel line are Amor Amor,
Eden, Noa, Promesse and Loulou.
Viktor & Rolf (Fragrances)
This is a fashion brand launched by
the Dutch designer duo – Viktor and
Rolf. Flowerbomb was their first
women’s perfume, which is now
marketed by L’Oréal.
Diesel (Fragrances)
Italy-based Diesel is a renowned
denim brand; whose fragrances busi-
ness is taken over by L’Oréal. It is best
known for its “Fuel for Life” fra-
grance brand for men and women.
To locate the above said master
brands in L’Oréal luxury products re-
fer Exhibit 4.
Brand Architecture –
Active Cosmetics
Vichy
Vichy Laboratories offers a complete
range of skin care products formu-
lated with active ingredients stem-
ming from pharmacological re-
search, combined with Vichy Ther-
mal Spa Water, which is renowned
for stimulating the skin’s natural de-
fense mechanisms. Vichy’s products
address the issues of moisturization,
nutrition, ageing, sun protection,
hair loss and others. The prominent
MARKETING MASTERMIND
brands under Vichy are: LiftActiv,
Capital Soleil, Dercos, Equalia,
Myokine, Novadiol, Normaderm,
Thermal Fix and Vichy Men.
La Roche-Posay
La Roche-Posay Laboratoire
Pharmaceutique is the brand strongly
rooted in dermatology. La Roche-
Posay was purchased by L’Oréal in
the late 1980s. It offers a complete
range of daily skin care and make up
products for all types of skin. All the
products are formulated with the La
Roche-Posay Thermal Spring Water,
which contains selenium, a sub-
stance known for its anti-radical
properties. The leading brands are:
Lipikar, Active C, Anthélios, Effaclar,
Hydraphase, Novalip lipstick,
Redermic, Respectissime mascara,
Tolériane and Unifiance foundation.
Innéov
Innéov Laboratories’ products take off
from the premise that diet has an ef-
fect on beauty. The product range
comprises pills and nutritional supple-
ments for improving the health and
beauty of skin, hair and nails. Innéov
Firmness is a re-densifying nutritional
supplement for face and body, meant
for improvement of dermal density
and skin micro-texture. Innéov Hair
Mass is another nutritional supple-
ment designed to boost the growth of
thick, dense glossy hair.
SkinCeuticals
Founded in 1997, SkinCeuticals pio-
neered the development of vitamin C-
based cosmeceutical products designed
to combat the signs of aging, caused by
environmental damage. It provides
skincare solutions through dermatolo-
gists, medical spas, plastic surgeons
and other skincare professionals in
over 35 countries worldwide.
To locate the above said master
brands in L’Oréal active cosmetics re-
fer Exhibit 5.
61 March 2008
L’Oréal
Conclusion
The L’Oréal Group has indeed been
successfully managing an amazing
array of brands across the globe,
with a complicated brand architec-
ture and brand portfolio, having mul-
tiple brands in several product cat-
egories. Its approach to retaining
and nurturing the identities and cul-
tural origins of different brands ex-
hibits a distinct departure from the
practice commonly followed by mul-
tinationals, which often try to har-
monize their products and brands for
a global market.
Most of the umbrella/master
brands and the numerous range/line/
product brands thereunder have come
into L’Oréal’s fold as a result of a series
of acquisitions over several decades.
L’Oréal has taken a conscious and
considered decision to retain and nur-
ture the legacy of the various brands
that it has acquired from time to time.
This has been used as a marketing
strategy, which in turn has led to the
present brand architecture.
Regardless of the reason and his-
tory behind the present brand archi-
tecture, it is nonetheless quite evident
from L’Oréal’s excellent financial and
market performance that it is manag-
ing the brand architecture and portfo-
lio quite well, in spite of the vicissi-
tudes of the market and intense com-
petition. A professional company
treats brand architecture as a high
level strategic decision as it has sev-
eral strong managerial implications
including resource allocation. Brands
have to be nurtured and built over
many years and the brand architec-
ture therefore has long-term implica-
tions. L’Oréal has built a brand archi-
tecture that outclasses competition,
and thus provides a lesson to other
companies in similar competitive situ-
ations to follow, for using brand archi-
tecture as a tool for growth. r
Reference # 10M-2008-03-11-10