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L'Oreal Paris - because you're worth it L'Oreal Paris are famous for their slogan but then they are one third of all profit made by the L'Oreal group of brands. Now let's put that in perspective here! L'Oreal owns a large number of the leading cosmetic and beauty brands out there and no doubt you'll recognise: Biotherm skin care (surely not!) The Giorgio Armani, Ralph Lauren, Cacharel and Viktor & Rolf designer fragrance brands Giorgio Armani Cosmetics (no way!) Kiehl's speciality skincare, haircare and bodycare Lancome cosmetics (oh yes they do!) shu uemura cosmetics (oh my god!) Redken 5th Ave NYC hair products (who would've thought it?) Maybelline cosmetics (what?) L'Oreal Professionnel hair products Garnier hair products (could of guessed that one) Vichy skin care (surely not...) Helena Rubenstein (falls off chair in shock) About Dani's T-Room Transexual Inspirations

Stick all that lot together with L'Oreal Paris and L'Oreal Paris is one third of all that gets sold! Now you probably have a much better idea of why L'Oreal Paris claim to be total beauty expertise! L'Oreal Paris are responsible for many of the everyday names we know and love such as the Plnitude skin care range, Elvive hair care and Studio Line styling products. Within their cosmetics range their Jet Set Nail

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Polish, Airwear Foundation, Glam Shine Lip Gloss and Rouge Virtuale Lipstick are still very popular and L'Oreal Paris is constantly bringing out new products. But why though, I hear you ask, why would L'Oreal want to own so many competing product brands? Simple. Each brand is geared up towards a different type of consumer. Lancome for example is one of the heavyweights of the cosmetics world, creating pure glamour for those whom money is no object to beauty. Shu uemura is the work of Mr Shu Uemura, a Japanese make up artist who began work in film make up in the 1950s and in typical Japanese fashion, offers a high quality blend of art, technology and style. Maybelline made first ever mascara way back in 1913 by mixing vaseline with coal dust and still have a great reputation for mascara (although I hear their ingrediants have since improved somewhat!).

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L'Oreal Paris' products sit nicely in the mainstream. They're good, consistent products at affordable prices Top of Form and although it is their hair products that are particularly well used (even may late Grandma used to swear by Dani's T-Room News Elnett hair spray which shows how long that's been Sign up for quarterly about!) their cosmetics do represent great value. L'Oreal updates - your details will pours amounts similar to the economy of a small country not be shared and you into product development yearly. The make up you get can unsubscribe at any as a result is designed for everyday use. It may lack the time. staying power of Max Factor cosmetics, the sheer colour explosion of MAC cosmetics or the decandent feel of Your Email: Dior, but for the price you pay, you get a great selection of products to choose from, each of which is very respectable for everyday purposes. For example, L'Oreal Paris' nail polish ranges such as the quick drying Bottom of Form Jet Set nail polish line and the long lasting Resist & Shine Nail polish line are products many women know and love. Equally their Color Riche lipstick and Rouge You are in the Transvestite Inspirations Virtuale lipstick remain popular offering a range of shades of beauty to rival the Chelsea flower show. A area very popular new introduction which reflects L'Oreal's Top of Form commitment to technology and innovation is the Glam Bottom of Form Shine lip gloss range. L'Oreal Paris make great products for heavy users and their products are so competitively priced you can afford to experiment without feeling deeply hurt that new crazygirl colour or uber-sexy sultry look didn't quite look as good on you as it did in the picture. After all, you can try out a couple of looks at their prices, get your own colour set and then move to expensive brands if you want to call it your signature look. They're fun, easy cosmetics well worth playing with.

SWOT Analysis
They are able to be global and to act local; market leader Suit Research & Development to different target groups High quality Effective distribution system

Weaknesses

Profit margins are slightly below some of their smaller rivals A decentralized organizational structure that can make control difficult

Opportunities

People attach more & more importance to quality & fixed/global brands Target groups with growth potential (Asian people, Men & ageing population)

Threats

Potential for monopoly that restricts them from entering into large mergers L'ORALs products are luxuries that could be hurt by an economic downturn Strong Competitors
Sources: www.loreal.de /

Conclusion
LORAL is the world market leader in cosmetics They are very innovative and invest a lot of money in research and development Products are positioned in the high-priced segment because of their high quality They offer well coordinated products for different target groups To keep their strength alive they have to observe their competitors

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b. Pricing Strategy: Garnier Men Power Light Range is a new line of products and hence Garnier recently worked on its pricing strategy. Garnier had to decide where to position this new product on quality and price. 1. Selecting the Pricing Objective: Garnier had to decide where it wanted to position this range. The clearer a firms objective, the easier ir is to set price. Garniers main Product Quality Leadership LOreal aims to be the product quality leader in the

objective is

market. It strives to make Garnier an Affordable Luxury, which would be characterized by

high quality, taste and status with a price just high enough

not to be out of consumers reach[9]. Thus, Garnier

has positioned itself as a leader in quality, with a premium pricing and a very loyal customer base. The new Garnier Men Power Light Range was priced on the same lines. 2. Determining Demand: The product is a new entrant and hence no clear information about the demand is pre-available. The surveys have been conducted to get an insight into the consumer choices and purchase patterns. 3. Estimating Costs: Garnier has been in the business of Fairness Cream for a long time.

Hence the new Mens Range has not proved to be very expensive for Garnier. The major
ingredients in the cream would be the same as that of its Female counterpart. Also the Garnier already has a very strong Distribution channel in India. These are basically the fixed costs of the company. The only major area of expenditure (variable cost) is the marketing and advertising of the product. 4. Analyzing Competitors Costs, Prices and Offers: The major competitors of Garnier in

Mens Fairness market are HULs Fair and Lovely Menz Active and Emamis Fair and
Handsome. Both these companies target the rural and the low income groups. Hence their prices cannot do much about it. Garnier just claims to offer high quality. 5.

are relatively lower as compared to Garnier. These are those companies policies and Garnier

Selecting a Pricing Method: Garnier adopts the Perceived value Pricing Method

wherein the product is based on customers perceived value. Perceived value is made up of several elements such as the buyers image of the product performance, the channel deliverables, the warranty, quality, customer support, and softer attributes such as the suppliers reputation,
trust worthiness and esteem. Companies must deliver the value promised, and the customer must perceive this value. Garnier is a well established brand in India as well as the world. It has always been associated with high quality. Hence Garnier can afford to go for this method.

Customers always perceive Garniers products with high value. Hence they would be ready to
pay more. 6. Selecting the Final Price: The pricing method adopted by Garnier narrowed the range

from which the company selected the final price of the product. Garnier also took into account other factors like company pricing policy (premium range), other marketing activities, gain and risk sharing pricing. Finally Garnier decided on the following price for its products[10].

Channel Strategy

LOreal and Garnier are found in all distribution channels, from hair salons and perfumeries to
hyper - and supermarkets, health/beauty outlets, pharmacies and direct mail. Garnier has developed massive sampling and street smart initiatives involving direct contact with customers in all countries. Garnier has a website GarnierBeautyBar.com which is presented like a real house where you can visit each room and/or personally experiment with one of the Garnier sub- brands. The branded house has constructed a virtual house in which all the brands in the family in the brands in the family are brought together with a view to offering an intense produce

experience. Garniers (male and female) customers enter via the Garnier Hall from where they
can go to the Beauty Lounge, Style Room, Tonic Area or Game Zone and try out their future looks, carry out personalized diagnostic tests or simply experiment and develop their customer loyalty. Loreal has many self service

or specialist stores and it adapts its policies according to the decision making process of the consumers or the distribution channels.

Customer Management Strategy: Garnier has worked profusely for the formulation of an effective customer management strategy. The important aspects of customer management are: I. Customer Expectations: LOreal and Garnier promise high quality to its customers. So Garnier Men Power Light range is also a high quality product which would deliver maximum benefits to its users. II. Service Quality Management: LOreal and Garnier India have a strong distribution channel and a large sales force which works to make Garnier products a memorable

experience for the consumer. Body Shop acquired by LOreal helps the customers in
choosing the right product for their skin[7]. This would ensure satisfactory service quality management.

b. Pricing Strategy garnier Men Power Light Range is a new line of products and hence Garnier recently worked on its pricing strategy. Garnier had to decide where to position this new product on quality and price
b. Pricing Strategy: Garnier Men Power Light Range is a new line of products and hence Garnier recently worked on its pricing strategy. Garnier had to decide where to position this new product on quality and price. 1. Selecting the Pricing Objective: