CASE STUDY

Lorea’l Global Brand

Knowledge
Dibuat oleh:
CHRISTABELLA/01619170032
TEOFILUS/01619170061
PRISCILLA/01619170070

Strategic Environment And Marketing

Dr. Moses LP Hutabarat, S.Kom, S.E., M.M
 CASE INTRODUCTION
Forbes L'Oreal's Market Share, Numbers,
and Information:

Industry: Household/Personal Care;

Founded: 1907;
Country: France;
CEO: Jean-Paul Agon;
Website: www.loreal.com;
Employees: 68,886; and
Market: 23 Global Brand, 130 countries.
Sales: $26.35 Billion.

Founded in 1909, the L'Oréal Group has become the largest cosmetics and beauty company in the world. In 2017, L'Oréal was the
leading personal care brand in the world with a brand value that amounted to 23.89 billion U.S. dollars. Between 2015 to 2018, the
company's compound annual growth rate increased by 4.2 percent.

Globally employing 82,600 people in 2017, L'Oréal's consolidated sales generated 26.02 billion U.S. dollars that year. The company's
cosmetic branch is primarily focused on skin care, hair care, make-up, hair colorants and perfumes with the former generating 28.5
percent of L'Oréal's global cosmetic sales in 2016.

1909 THE FIRST STEPS,
CONSTRUCTING A MODEL
Eugène Schueller, a young
chemist with an entrepreneurial
spirit, founded the company that
was to become the L’Oréal
group. It all began with one of
the first hair dyes that he
formulated, manufactured and
sold to Parisian hairdressers.
With this, the founder of the
group forged the first link in
what is still the DNA of L’Oréal:
research and innovation in the
service of beauty.
Lorea’l TIMELINE
1957-1983 : "ON THE ROAD
TO THE GRAND L'ORÉAL“
These are the formative years
of “Le Grand L’Oréal”.
At the instigation of Chairman
François Dalle, the Group starts
to expand internationally.
Acquisitions of strategic brands
mark the beginning of a period
of spectacular growth for the
company. Emblematic products
come into being.
The company motto is “Savoir
saisir ce qui commence” (seize
new opportunities).
1984-2000 BECOME
NUMBER ONE IN THE
BEAUTY INDUSTRY
These twelve years are
marked by a great period of
growth for L'Oréal, mainly
driven by the significant
investments made by the
group in the field of research.
Alongside these efforts are
strategic product launches that
not only make history, but also
succeed in strengthening the
Group’s brand image.
In 1988, François Dalle's
successor, the research and
development pioneer Charles
Zviak, hands over the reins of
the company to Lindsay
Owen-Jones, a truly
outstanding director.
2001-2018 DIVERSITY OF
BEAUTY WORLDWIDE
There is no single type of
beauty; it is a multiple-faceted
quality framed by different
ethnic origins, aspirations, and
expectations that reflect the
world’s intrinsic diversity. With a
portfolio of powerful,
international brands, L’Oréal
enters the 21st century by
embracing diversity in its global
growth agenda. Headed since
2006 by Chairman Lindsay
Owen-Jones, and Chief
Executive Officer Jean-Paul
Agon, and then by Jean-Paul
Agon who was appointed
Chairman and CEO in 2011,
 Selling the science of beauty around the world
Organization:
Loreal 3 Major Groups, Cosmetics, The Body Shops and dermatology. Galderma
Laboratories a joint venture with Nestle, Cosmetics creates 93% revenue, so L’Oreal break
down 4 divisions:

• Consumer Product Division: Garnier, L’Oreal, Maybeline and Soft

Sheen/Carson.
• Luxury Product Division: perfumeries, dept. stores and duty free shops.
• Professional Products Divisions: hair care used by profesionals and exclusive
salons.
• Active Cosmetics Department: distributed by selected pharmacies and health
outlets
Size of the global skin care market from 2012 to 2024
Size of the global skin care market from 2012 to 2024

“Launching new innovative products on a

regular basis was key”

Growth
4,00%
3,50%
3,00%
2,50%
2,00%
1,50%
1,00%
0,50%
0,00%
Loreal P&G Revlon
Growth

% Of revenue in 2010
STEP 1: Situation Analysis

KEY ACTOR & MAIN ISSUE

1. SEEMA KHOSLA: DIRECTOR

• Goldman Sachs: India’s “Successful Woman Entrepreneur”
• Main issue:
• Ideas Kitchen terus berjalan baik hingga tahun 2013. Seema berpikir mungkin sekarang waktu
yang tepat untuk ekspansi.
• Seema tidak percaya diri jika harus mendiversifikasi lokasi perusahaan untuk membuka
showroom/pabrik di kota lain.
• Jika ekspansi, kemana? Apakah kota besar yang memiliki demand tinggi tapi sangat kompetitif,
ataukah kota tier II yang memiliki potensi, dan juga tidak terlalu kompetitif, tetapi tidak terlalu
dapat meningkatkan “presence” Ideas Kitchen

2. ARJUN KHOSLA: HEAD of MARKETING

• Mau mengambil resiko jika sudah dikalkulasi dengan baik
• Main issue: Menurut nya, Ideas Kitchen belum cukup berkembang untuk melanjutkan diversifikasi. Arjun berpendapat lebih
baik melakukan ekspansi secara geografis dan memperlebar product range, seperti modular interior wardrobe atau
bedrooms.
 BAHKAN.. L’OREAL MENJADI SALAH SATU
ADVERTISERS TERBESAR DENGAN PERTUMBUHAN
TERCEPAT DI CHINA

$Million

1200
ADS SPENDING
1000
Additional 10%
800
10% dari Global Ads
600 Budget
400
200
0
2005 2006 2007 2008 2009 2010
TELLING THE STORIES
 TRANSISI MARKET
DIVERSE CUSTOMER BASE
“We have come AND ETHNICS
from a world where
the choices were WEST Populasi yang semakin tua
LIMITED, to one
where number of EAST Customer dengan cita-cita yang
options is tinggi (aspiring)
INFINITIVE” WORLD- Emerging market
-Agon WIDE Pria mulai meminati Health dan
Beauty Care

APA YANG LOREAL LAKUKAN?

GLOBAL ADS SPEND
#3 IN THE WORLD $Million
15000

INVESTASI BESAR 10000

UNTUK 5000

ADVERTISING 0
2005 2006 2007 2008 2009
L'oreal P&G Unilever
 BAHKAN.. L’OREAL MENJADI SALAH SATU
ADVERTISERS TERBESAR DENGAN PERTUMBUHAN
TERCEPAT DI CHINA

$Million

1200
ADS SPENDING
1000
Additional 10%
800
10% dari Global Ads
600 Budget
400
200
0
2005 2006 2007 2008 2009 2010
 CONTOH ADS LOREAL

2006: 2007:
Membuat buzz di 2% ads budget
blogosphere untuk online
initiatives

2009: IKLAN, IKLAN, DAN IKLAN

4.56$ B dari 7 $B marketing budget untuk iklan

TV 75% PRINT 20% BILLBOARD 5%

 FAME BY ASSOCIATION
ENDORSERS:A-list celebrity untuk “mendorong” produk masuk ke market dengan umur,
etnis, dan gender yang bervariasi
Fun, lively image untuk menarik young adult & middle-aged Top selling di banyak negara, 23 juta terjual setiap tahun
women
 FAME BY ASSOCIATION
SPONSORSHIP

Sponsor untuk Cannes dinner dan after party

Make up sebelum red
yang berkontribusi untuk AmFar (American
carpet
Foundation for AIDS Research)

Spokeperson L’Oreal Meluncurkan 3 shades eyeshadow dan kutek

Sponsor Cannes Film Festival di Cannes yang diinspari dari Cannes, L’Or
 FAME BY ASSOCIATION
ENDORSERS:Mengasosiasikan portfolio brand nya melalui brand ambassador terkenal
sehingga dapat mengena kepada semua umur, ras, gender
 FAME BY ASSOCIATION
KERJA SAMA DENGAN PRODUSER FILM DAN
STUDIOS

“Here's your chance to get the look of stylish, fun and fashionable Sonam Kapoor who is all
set to sweep you off your feet in her latest Bollywood movie- Aisha”
 MARKETING AS RECRUITING
MENGIDENTIFIKASI TALENT TERBAIK MELALUI
GAME

Sejak tahun 1992 ● 43 ribu mahasiswa ● 285 universitas ● 43 negara

Kompetisi untuk mahasiswa, dimana mereka ditantang untuk dapat menghasilkan
konsep marketing baru untuk brand-brand L’Oreal.
Misalnya: mendesign konsep ads untuk menarik pria masuk ke professional salon.
 FROM PRINT TO DIGITAL
Leading print media Harus spend smarter di
Changing advertising landscape
advertiser digital ads

User Generated Websites + Web Youtube Channel

Campaign Personalities “Destination Beauty”

Grassroits campaign, membantu 4000 salon membuat Virtual 3D In-Store Scanning Booth (+ Elle dan
FB page + custom tab Bloomingdale’s)
 REACHING THE NEXT BILLION
CUSTOMERS

• BY 2020:
• 2 Bilion people customer base
• Meningkatkan share sales dari emerging markets, dari 30% ke 50%
Namun, banyak resiko yang harus dihadapi…

“Many requirements for survival in next century are going to be size-

related. Yet the imperative for size is balanced but the need for genuine
innovation, creativity, flair, intuition, imagination, taste, a sense of what
is cool and what is not and those are not qualities that go with huge
companies/” - CEO Owen Jones (1999)