6. Case study: 1.

Blackberry:

1. Introduction:

Blackberry was launched in 1999 it was recognized all over the world as a

business communication devises. The BlackBerry is also known as a RIM device.

RIM is one of the worlds leading designers, manufacturers and marketers of solutions for the mobile communications market. Through development and integration of hardware, software and services, Rims portfolio of award-winning products now includes the BlackBerry.

Research in Motion (RIM) was targeting mainly the business world, which is only a certain percentage of the market. The main challenge for RIM is to discover how to continue producing strong technology devises, while attracting new and different consumers in the market.

In 1999, the Blackberry wireless e-mail device, the BlackBerry 5790, was launched along with the Blackberry Enterprise Server (BES) for Microsoft Exchange.

Early BlackBerry Devices

The 8000 series adds names to some of the numbers with the BlackBerry Pearl, BlackBerry Curve and BlackBerry Bold. Cameras and media players are prevalent among the releases of this series of devices as well.

InfoWorld magazine awarded BlackBerry their Product of the Year award for the year 2000. By 2006, BlackBerry boasted over 5 million worldwide subscribers and that number tripled to 15 million in mid-2008. Recent BlackBerry Devices

RIM continues to grow and improve the BlackBerry brand, which has earned its many nicknames, such as Crackberry. The BlackBerry 9530, known as the BlackBerry Storm (9000 series), was the first Blackberry with a touch screen interface and no keyboard.

2. History:
The Blackberry device is wireless and handheld, and it was originally introduced in 1999 to be used as a two way pager. It is a Smartphone that offers such features as push email, text messaging, web browsing, internet faxing, mobile telephone, and many other wireless informational services all on a multi touch interface. Blackberry is a perfect example of a convergent device. Blackberry and its technologies were developed by the Canadian company Research In Motion ( RIM) . This product is able to send and receive information over the wireless data networks used by mobile phone service companies. Blackberry really famous its email services which allowed corporate employees as well as regular consumers the ability to access their email anytime, anywhere, offing them a range of freedom. The first Blackberry devices had only monochromatic displays, but they have expanded their technology in order to provide customers with colour-rich displays that seem to get better with every new release. The company has seen explosive growth since its original release of Blackberry devices, and subscribers have reached over 20 million in 2008. While the company continues to release new versions of the blackberry, it is still commonly seen consumers using older versions because of their quality and durability Recently Blackberry devices have focused more on the visual aspect, working to make Blackberry devices available in a wide range of colors, and also working to make the devices smaller and more compact.

The release of the Blackberry Pearl was a turning point for the company, as it was offering customers a brand new style that was instantly accepted by Blackberry lovers everywhere. The future of RIM and Blackberry seems to grow brighter each year.

3. Overview:
1999: Corporate Milestones RIM lists on the Nasdaq (Nasdaq: RIMM)

Product Announcements RIM introduces the BlackBerry wireless email solution BlackBerry Enterprise Server Software for Microsoft Exchange

Partnerships & Alliances RIM signs BlackBerry supply agreement with Dell, renews supply agreements with BellSouth Wireless Data and extends its OEM radio modems supply agreement with Panasonic and Lipman USA RIM works with WolfeTech Corporation and GoAmerica Communications to further develop BlackBerry applications

Awards Blackbery receives the: 2000: Best Pager Award from 'etown.com' Deloitte & Touche Canadian Technology Fast 50 Market Engineering Product Innovation Award from Frost & Sullivan Canadian-American Business Achievement Award Smithsonian Award, the Mobility Award from Mobile Insights Technical Achievement Academy Award from the Academy of Motion Picture Arts and Sciences

Product Announcements RIM introduces the RIM 957 Wireless Handheld and announces a development environment for Java.

Partnerships & Alliances RIM signs BlackBerry supply agreements with Rogers AT&T Wireless, Motient, AOL, BT Cellnet, SkyTel, OneMain.com, Bell Mobility, Microcell, Group Telecom and EarthLink.

Awards BlackBerry receives: 2001: Product of the Year Award from InfoWorld Magazine PC World World Class Award Best Telecom Product of the Year Award

Product Announcements RIM introduces BlackBerry support for Lotus Notes and Domino, the wireless calendar and debuts the first wireless handheld based entirely on the Java 2 Micro Edition platform

Partnerships & Alliances The BlackBerry wireless email solution becomes available in the UK through BT Cellnet RIM signs BlackBerry agreements with Telfort Mobiel B.V. in The Netherlands, Esat Digifone in Ireland and DADA in Italy

Awards 2002: RIM and BlackBerry receive the Editor's Choice Award from Lotus Advisor Magazine Cingular's Best Solutions Award eWeek's , eXcellence Award PC World World Class Award Mobile Innovators Award for Best Communications Device

Product Announcements RIM introduces the data and voice BlackBerry 5810 and a new family of OEM radio modems running on GSM/GPRS wireless networks worldwide.

RIM introduces its BlackBerry Development Environment for the Java 2 Platform, Micro Edition. RIM announces plans to offer a BlackBerry reference design program based on embedded BlackBerry and Java technologies RIM introduces the Mobile Data Service feature of BlackBerry Enterprise Server which extends beyond email to access corporate data and applications RIM introduces the BlackBerry 6710 and BlackBerry 6720 featuring an integrated speaker/microphone and international roaming capabilities operating on GSM/GPRS wireless networks worldwide RIM introduces BlackBerry Web Client, an Internet-based email interface, allows users to access multiple existing corporate and/or personal email accounts from a single BlackBerry handheld RIM introduces the BlackBerry 6510 with a walkie-talkie feature on the Nextel network RIM introduces the BlackBerry 6750 for the CDMA2000 1X wireless network

Partnerships & Alliances RIM partners with Analog Devices to provide participating manufacturers with an integrated processor that supports both wireless communications and Java applications on a single chip RIM licenses its keyboard technology to Palm and Handspring

Awards RIM receives the: MIT Sloan eBusiness Award

BlackBerry receives the: SIIA Codie Awards for the Best Handheld Application of the Year and Best Wireless Solution of the Year Cingulars Best Solution Award Network Industry Award for the Best Mobile Communications Product HK Magazines Best New Gadget InfoWorlds Gadget of the Year and Best Wireless Product of the Year PC Expert's Award

2003: Corporate Milestones RIM added to the Nasdaq-100 Index

Product Announcements RIM introduces the compact, lightweight BlackBerry 6210, BlackBerry 6220 and BlackBerry 6230 to individuals and the market on the GSM/GPRS wireless network RIM introduces the BlackBerry Connect licensing program, enabling mobile device manufacturers to equip their handsets with the integrated ability to connect to BlackBerry Enterprise Server RIM introduces the color BlackBerry 7230, BlackBerry 7210 and the BlackBerry 7280 with international roaming capabilities RIM introduces a new release of its BlackBerry development environment for Java 2 Platform, Micro Edition BlackBerry Platform Received FIPS 140-2 Security Certification for Government Customers RIM introduces the BlackBerry 7730 featuring a large, bright, color screen and support for worldwide international roaming on GSM/GPRS networks

Awards RIM receives the: Technology Fast 500 and Fast 50 Awards

BlackBerry receives the: TECH Edge Editors' Choice Award Laptop Magazine Editors' Choice Award CNET Editors' Choice Award NET Magazines 2003 Reader's Choice Award Andy Seybold Outlook 4Mobility Innovation Award KPMG/Ipsos-Reid Top Technology Award Best New Technology Award at the FOSE Government Show

2004:

Corporate Milestones Rims 20th Anniversary BlackBerry reaches over 2 million subscribers worldwide

Product Announcements RIM introduces the color BlackBerry 7520 with speakerphone and walkietalkie for the Nextel network RIM introduces the BlackBerry 7750 for CDMA2000 1X networks RIM introduced the new BlackBerry 7100 Series, which features the power of BlackBerry in a new sleek design with many enhanced phone features, quad-

band and Bluetooth support, speakerphone, large color screen and Sure Type keyboard technology RIM introduced Sure Type, a breakthrough keyboard technology for smaller handsets RIM introduced the new BlackBerry 7290, which features quad-band and Bluetooth support, a brighter screen and enhanced memory RIM introduced the new Java Development Environment for BlackBerry RIM previewed a new BlackBerry handheld for WLAN network.

Awards RIM receives the: Corporate Knights Best 50 Canadian Manufacturers & Exporters (CME) and Economic Development Canada Innovative Business of the Year Award Deloitte & Touche Technology Fast 500 Award Deloitte & Touche Technology Fast 50 Award Deloitte & Touche Sustained Excellence Award KPMG/Ipsos-Reid Top Technology Award

RIM and BlackBerry receive the: Baig's Best Award Best Magazine Award Best New Technology Award Best of Executive Travel Award Business Weeks Best Products 2004 CNET Editors' Choice Award CRN: Product of the Year International Stevie Award for Best New Product or Service LAPTOP Editors' Choice Award Law Technology News Award 2004 MSD2D Peoples Security Choice Award Mobility Award for Wireless Data, Software and Devices PC Magazine's Best of the Year PC Magazine Best in Show Award PC Magazine Editors' Choice Award Shoppers' Choice Award 2004

2005:

Corporate Milestones RIM surpassed the 4 million subscribers milestone

Product Announcements BlackBerry Enterprise Server v4.0 received FIPS 140-2 security certification RIM and various partners announced plans to develop location-enhanced applications for the BlackBerry platform RIM previewed its next generation of BlackBerry MDS technology with support for web services. RIM announced the security-enhanced BlackBerry Smart Card Reader RIM and Avaya announced plans to extend Avaya secure enterprise communications applications to the BlackBerry platform over WLAN RIM launches BlackBerry 8700 Wireless Handheld Series RIM and Nokia Announces Availability of BlackBerry Connect on High-end Business Devices in Singapore RIM Introduces the Sony Ericsson P910i Smartphone with BlackBerry Connect RIM Introduces BlackBerry Built-In for the Siemens SK65 Handset RIM Introduces the BlackBerry 7130 Wireless Handset Series

Awards

BlackBerry receives the: Baig's Best Award Brandweek Customer Loyalty Awards powered by Brand Keys Datamation's Product of the Year Digital World Innovations Award Editor's Choice and Best Buy Award Government Computer News "Best of 2005" IT Week Magazine Best Buy Award 2005 LAPTOP Magazine Editors' Choice Mobile PC Magazine's Mobile Choice MobileTrax Mobility Award PC World 2005 World Class Award PC World's Editor's Pick Portable Computing Magazine Best Products of 2005 Award Service Provider Weekly TIME Magazine's Gadget of the Week Web Week Magazine Best Products of 2005 Award

2006:

Corporate Milestones RIM surpassed the 5 million subscriber milestone

Product Announcements CESG approved BlackBerry for use by government workers handling restricted data in the U.K. BlackBerry WLAN Solution Enhances Productivity for On-Campus Mobile Workers through Wireless Data Access and Wireless VoIP RIM launched BlackBerry Enterprise Server v4.1 and BlackBerry Enterprise Server Small Business Edition v4.1 for Microsoft Exchange, IBM Lotus Domino and Novell GroupWise RIM launched BlackBerry Enterprise Server Express for small and mediumsized businesses, branch offices and companies new to BlackBerry available as a free download from RIM to any customer who purchases a new BlackBerry device RIM announces BlackBerry Enterprise Server for MDS Applications to provide organizations the ability to deploy wireless applications independent of email RIM introduces the UMTS-enabled BlackBerry 8707 Wireless Handheld UMTS support enables users to simultaneously send and receive email, browse the Internet and use other applications while speaking on the phone, even while the handset is being used as a tethered modem RIM Announces Hosted BlackBerry Enterprise Server to enable service providers to offer a hosted managed service of the BlackBerry Enterprise Solution to Small and Medium Sized Businesses.

1. Blackberry segmentation - targeting -positioning (STP):

STP is related with marketing research. Blackberry pattern of STP.

As a segmentation STP uses information about current market size, market shares, concentration of customer based on particular product, customers purchase decision process etc.

Segmentation as follow:

Demographic segmentation:

Segmentation based on: income, gender, marital status, education etc.

Behavioral segmentation:

Segmentation based on: lifestyle, opinions and attitudes, degree of loyalty,

usage consumption and benefits.

After finding out kinds of consumers next thing to target consumers known as targeting. Target segmentation: There are 3 considerations choosing target segment such as: 1. How well existing segment treated by competitors? 2. How large market size of the segment is? 3. Do the companies have enough strength to appeal one or more group of segments? Next step in STP is positioning of product or company to appeal target segment. There are 3 strategies for it:

1. Undifferentiated:
In undifferentiated strategy all consumers are treated as same.

2. Concentrated:
In concentrated strategy a product is positioned to serve customers specific needs.

3. Differentiated:
In differentiated strategy a product is portioned differently for each target segment.

5. Sales Report:

The sales of smartphone for the last 3 months of 2009 in the United States only. 41.6% Blackberry 25.3% iPhone 18.0% Windows Mobile 6.1% Palm 5.2% Google BlackBerry market share is at least 2x the market share of Windows Mobile. Despite having twice the number of devices on the market, Windows Mobile users browse the web almost twice as much as users of Blackberry.

A report showing the worldwide smartphone sales by operating system for 2010. In the chart above it shows Symbian ranking number 1, followed by Android, RIM and iOS.

RIM barely stayed in front of Apple by 0.3% while in 2009 they were ahead by 5.5%. With the iPhone 4, its safe to say that RIM needs to improve the BlackBerry very quickly or they will surely be passed this year.

6. Future Prospects- My View:

RIM uses simple marketing strategies to catch the markets attention. The company relies on a strategy based on consumer loyalty and brand loyalty to ensure a high demand for their products.

Blackberry has put itself in a strong market position, making them leaders in the Personal Digital Assistant (PDA) business. Coupled with a high business growth rate, Blackberry should aim to hold its current market shares.

RIM need a product vision identifying new differentiators for BlackBerry. RIM should focus on building the product, so they can very well integrated with the other device.

Other smartphone companies will eventually copy the features, so RIM needs to create a boundary of development in which it'll bring out another 2-3 new differentiators every 24 months.

RIM needs to create planning processes in its software team, with someone who has creative knowledge of software. Also, the product manager needs to be actually required to delay the product if it's not right for customers.

7. Conclusion:

RIM had launched a BlackBerry that is according to users needs & wants for enjoyment. The next version of blackberry will have better styling with front facing camera, bigger and higher resolution screen, and more innovative . Hence the straightforward interfaces make smart phone very easy to pick up and use, they have solid software, messaging capabilities and great keyboards for typing. For these reasons, it tends to recommend them as a users first smart phone. RIM proves that this smartphone still can deliver an innovative new device rather than just a refresh of a proven model.

BlackBerry provides a wealth of opportunities for business users to stay connected to email and other critical information wherever they are, and it also offers decent multimedia applications.

2. LOreal:

1. Introduction:

LOreal Group is the worlds number one cosmetics company with an impressive portfolio of over 17 international brands and 20 consecutive years of double-digit growth in pre-tax profit.

LOreal has developed activities in the field of cosmetics, concentrating on hair colour, skin care, sun protection, make-up, perfumes and hair care. In 1972, L'Oreal unveiled the first TV ads for the "I'm Worth It" campaign for Preference hair colour which would help boost sales. LOreal India has over 600 employees and has a strong track record with consistent double digit sales growth yearly. In India LOreal operates through four divisions: Consumer Products Division Professional Products Division Active Cosmetics Division Luxury Products Division. LOreal India launches "Beautiful Beginnings" to commemorate the Group's centenary Beautiful Beginnings is a partnership between LOreal India and Aide et Action an NGO.

2. History:
In 1907, Eugene Schueller , a French chemist, developed an innovative hair colour formula. The uniqueness of this formula, named Aureole, was that it did not damage hair while colouring it, unlike other hair colour products that used relatively harsh

chemicals. Schueller formulated and manufactured his products on his own and sold them to Parisian hairdressers.

From the very beginning, Schueller gave a lot of importance to research and innovation to develop new and better beauty care products. By 1920, the company employed three in-house chemists and made brisk business selling hair colour in various countries like Holland, Austria, and Italy. Schueller used advertising in a major way to market his products. He used promotional posters made by famous graphic artists like Paul Colin, Charles Loupot, and Raymond Savignac to promote his company's products.

In 1933, Schueller, created and launched a beauty magazine for women named, Votre Beaute. In 1937, he started the 'clean children' campaign and created a jingle 'Be nice and clean, smell good' for Dop shampoo, which went on to become one of the most famous jingles in France.

In 1940s, the company's name was changed to LOreal,. In 1957, after Schueller's death, Francois DaIle, Shueller's deputy, took over as the company's Chairman and CEO. During the 1950s, the company pioneered the concept of advertising products through film commercials screened at movie theaters. The first movie advertisement was for L'Oreal's 'Amber Solaire' (sun care cream).

In 1963, L'Oreal became a publicly traded company. Dalle, began taking steps to internationalize L'Oreal's ownership structure to prevent it from coming under the control of the government. In 1972, the company launched the legendry advertisement campaign 'Because I'm worth it' to promote the 'Preference' line of hair colour. The slogan shows up the company's philosophy of providing the most innovative, high-quality, and advanced products at an affordable price. In the cosmetics business, profit margins tend to be generally low as there was not much differentiation between the products offered by various companies. L'Oreal's decision to differentiate its products by attaching an emotional quality to its brands thus worked very well.

The emotional pitch, ''Because I'm worth it", indirectly conveyed the message that ''I'm willing to pay more". According to an article, it conveyed that, "I will prove that I value myself by paying more than I have to." This translated directly into profits for the company.

Over the next few years, the company's business expanded considerably. It started distributing its products through agents and consignments to the U.S., South America, Russia, and the Far East. L'Oreal soon emerged as the only cosmetics brand in the world that had products in all segments of the Industry, that is: Consumer, Luxury, Professional, and Pharmaceutical.

Although the company started as a hair colour manufacturer, over the decades it had branched out into a wide range of beauty products such as permanents, styling aids, body and skincare cosmetics, and cleansers and fragrances over the decades.

Since 1909, LOreal, the world's leading beauty company, has been striving to make beauty an accessible reality for everyone by developing products that meet the cultural preferences and needs of men and women around the globe.

LOreal has been recognized by many leading organizations and rating agencies for its ethical standards of behavior and its commitment to operating a sustainable business. This provides for the triple bottom line: Economic growth Environmental respect Social responsibility.

The LOreal Foundation in Paris, which was established in 2006, provides global support for important social initiatives including the company's For Women in Science and Hairdressers. Today, LOreal operates in more than 130 countries and markets more than 80,000 products across 23 beauty brands.

In 2010 LOreal USA sales is about $4.7 billion. In addition to corporate headquarters in New York, LOreal USA has Research and Development, Manufacturing and Distribution facilities across seven states in the U.S., including New Jersey, Kentucky, Arkansas, Illinois, Ohio, and Texas. Between LOreal USA and all of its subsidiaries, there are over 9,800 employees.

3. Overview:

1907: Eugene Schueller begins with the first synthetic hair dyes and sells them under the brand name of Aureole. 1912: The company expands to Austria, Holland, and Italy. 1920: The firm's products are now available in the U.S., Brazil, Chile, Peru, Ecuador, Bolivia, the Soviet Union, and the Far East. 1928: Monsavon, a soap company, is acquired. 1933: Famous artists are commissioned to design LOreal posters; the magazine Votre Beaute is launched. 1938: The company advertises its hair products on the radio. 1945: LOreal launches the first cold permanent wave product, Oreol. 1950: The firm develops a research and development team of 100 chemists. 1955: The first coloring shampoo, Colorelle, is introduced. 1963: The Company lists on the French stock exchange. 1969: Lindsay Owen-Jones joins the firm. 1973: LOreal purchases a 53.4 percent interest in Synthelabo. 1974: Eugene Schueller's daughter, Madame Liliane Bettencourt, sells nearly half of her LOreal stock to Nestle S.A. 1977: The company buys stakes in magazines Marie-Claire Album and Interedi-Cosmopolitan. 1988: The firm acquires Helena Rubenstein Inc.; Owens-Jones is named chairman and CEO.

1994: Control of Cosmair Inc. is purchased from Nestle S.A. and Bettencourt.

1995: The Maybelline brand is acquired. 1996: LOreal Retail is formed from the merger of the U.S. hair-care and cosmetics groups. 1998: Soft Sheen Products Inc. is acquired. 1999: Elf Aquitaine and LOreal merge their pharmaceutical subsidiaries to create Sanofi-Synthelabo. 2000: LOreal remained the market leader in the cosmetics industry with a 16.8 market share. 2001: LOreal announced plans to sell its interest in its Marie-Claire magazine. 2003: LOreal announced its 19th consecutive year of double-digit growth. 2007: LOreal was ranked 353 in the Fortune Global 500. The company had earned $2,585 million on sales of $19,811 million. There were 60,850 employees. 2008: LOreal was named Europe's top business employer by The European Student Barometer,] a survey conducted by Trendence that covers 20 European countries and incorporates the responses of over 91,000 students. 2009: LOreal discovered a Foundation Factor had replaced theLipstick Index as a new economic indicator. 2011: L'Oreal will have the largest factory in the Jababeka Industrial Park, Cikarang, Indonesia with total investment of US$50 million.

4. On The Way To Fame:

By the 1970s, L'Oreal's products had become quite popular in many countries outside France. Jones entry in 1970s marked the beginning of a new era of growth for the company. During 1978-81 Jones functioned as the head of L'Oreal's business. Due to his exceptional performance, Jones was given the responsibility of looking after L'Oreal's during 1981-4. Jones as good management skills, succeeded DaIle as L'Oreal's Chairman in 1988. He was aware that DaIle had begun the work of internationalizing L'Oreal to prevent it from remaining as 'just a French cosmetics company'. As he tried to continue Dalle's work, he realized that he had to tackle the situation created by L'Oreal's image. During the 1980s and 1990s, almost 75% of the company's sales were in Europe, mainly in France. L'Oreal's image was so closely tied to Parisian sophistication; it was difficult to market its brands internationally. Now Jones thus decided to take a series of concrete steps to make L'Oreal a globally recognized brand and the leading cosmetics company in the world.

In 1995-6, only 7% of its revenues ($350 million) came from outside the US. L'Oreal decided to overcome this problem by giving a complete makeover and turning it into a global mass-market brand. In 1997, the company launched new make-up line called 'Miami Chill' with bold colours like yellow and green. This gave the brand a new look and targeted it on middle-aged women. This revamp was very successful: its market share in the US increased to 15% in 1997 from just 3% in 1996. In 1999, buoyed by the success in the US, L'Oreal acquired the brand name in Japan. By the end of 1999, products were sold in more than 70 countries around the world. While in 1999. 50% of the brand's total revenues came from outside the US, by 2000 the figure increased to 56%.In 2000 "L'Oreal achieved sales growth of nearly 20% by developing new products, expanding into key international markets, and investing in new facilities, all this because to reach into the group's of top 10 brands.

5. LOreal Segmentation:

LOreal has engaged in many forms of Market Segmentation in their venture in India, with different variables during different time periods. The segmentation methods first entered the market in 1991, followed by what ensued after their makeover.

Market Segmentation:
Gender Segmentation: LOreal first segmented the population into the different gender as per their products combination of low price and natural ingredients. Income Segmentation: LOreal segmented the market into 2 main segments: the poorer masses and the rest. It marketed its product as low in cost to attract the poorer. At this point of time, it was not yet targeting the middle class or upper class and thus did not make any distinct segmentation of the richer classes Psychographic Segmentation: LOreal segmented India into different groups based on their thinking and behavior from Older: Who have more conservative Indians, who held conservative values more strongly. Younger: Who have more impressionable generation, who had developed a very different and westernized view on spending and culture. Age Segmentation: By segmenting the market into the younger middle class from the more conservative, often older Indians, it had also segmented the market based on age, and showed an increased interest in capturing the market share of the younger Indians. Benefits Segmentation: LOreal further segmented the market on a benefits basis when it introduced Excellence Creme. Being in creme form, it compared to the natural ingredients such as ammonia which damaged and dried up womens hair. Thus segmented the market into those who needed the hair dying and strengthening benefits of Excellence Creme and those who did not.

6. Future target segment & product positioning:

LOreal now targets the young middle class females, especially those with graying hair. It saw a maximum profits as it not only possessed the purchasing power, but modernized mentality that made these people more receptive to purchasing LOreals more luxurious and expensive products.

Since there was previously no product that solved womens hair greying problems. LOreal introduced Excellence: Creme that promised additional benefits apart from just dying of hair. It promised to strengthen the hair and tried to minimize the damage that was caused due to henna and ammonia. The young middle class fit into this segment well because those women were more educated and concerned for the healthy beautiful hair, as well as more equipped with the purchasing power fit into this segment. Cheap harmful products would not appeal to them as much as high quality LOreal products which justified their higher price with higher benefits.

Excellence Creme was marketed as a luxury purchase and a high-end niche product . Positioning itself as higher quality and made of extensively developed ingredients with additional benefits. Its one of the most innovative products in Europe.

This promise of beauty and benefits positioned LOreal higher in the market compared to the home brands which positioned themselves as cheap, value-formoney products which only served the most basic of functions of hair cleaning.

7. LOreal vs. home brand:

LOreal brand

Home brand

LOreal justified their high prices by using high quality ingredients.

Any Home brands sought to sell the most basic shampoos with the lowest quality ingredients in order to offer the lowest prices

LOreals strategy targeted the more educated and had more disposable income to purchase luxury items if they justified their price.

While home brands used such a concept to attract the lower-income masses that only needed bare necessities.

LOreal did not try to establish brand familiarity as it was very new in the market. It captures the loyalty in the market by promising better quality products at higher price.

Home brands aimed to generate loyalty of existing users through brand familiarity by showing repeated use of product by generations of Indians would bring about feelings of trust.

Finally, LOreals attempt to re-enter the lower income market, it differs from home brands by offering good quality at lower prices

Home brands offer of low price and low quality.

8. Sales Report:

1. Consumer Products (54% of Operating Income)

The consumer products segment sells its goods through mass-marke drugstores. Garnier- a skin and haircare brand. Garnier products are marketed to both men and women, and one of its most popular lines is Garnier Fructis haircare. L'Oreal Paris- a leading international beauty brand. L'Oreal Paris offers products for men and women that spans all facts of personal care, from skin care, hair care and hair colouring to make-up and styling products.

2. Luxury Products (21% of Operating Income)

The luxury products division sells its goods through a smaller collection of department stores and the boutique's own retail locations.

3 .Professional Products (16% of Operating Income)

The professional products segment produces products that are used by professional stylists in hair salons.

4.Active Cosmetics (9% of Operating Income)

This segment produces skincare products sold in pharmacies and specialty drugstores.

Sales by operational division and geographic zone 2010-2011:

Quarterly sales ? million By division Professional Products Consumer Products Luxury Products Active Cosmetics Cosmetics total By geographic zone Western Europe North America New Markets, of which: - Asia, Pacific - Eastern Europe - Latin America - Africa, Middle East Cosmetics total The Body Shop Dermatology(1) Group total 1,883 998 1,565 772 352 307 134 4,445 164 112 4,722 1,910 1,117 1,833 917 355 404 158 4,861 170 130 5,160 0.5% 7.2% 11.6% 11.7% -1.5% 24.1% 16.0% 6.0% 0.8% 5.9% 5.8% 1.5% 11.9% 17.2% 18.8% 0.7% 31.5% 18.4% 9.4% 3.2% 15.5% 9.3% 653 2,363 1,013 417 4,445 716 2,584 1,117 445 4,861 3.1% 6.3% 7.7% 4.9% 6.0% 9.6% 9.4% 10.3% 6.7% 9.4% Growth

1st quarter 20101st quarter 2011Like-for-likeReported

Cosmetics sales

1. Professional Products:
In the first quarter the Professional Products Division posted growth of +3.1% likefor-like, faster than the market trend, and +9.6% based on reported figures It continued its expansion with an additional 20,000 active salons compared to the first quarter of 2010.

2. Consumer Products:
The Consumer Products Division achieved sales growth of +6.3% like-for-like, and +9.4% based on reported figures. The division is continuing to strongly advance in North America and in the New Markets.

3. Luxury Products:
The Luxury Products Division recorded growth of +7.7% like-for-like and +10.3% based on reported figures. The division's sell-out accelerated significantly in the United States, and remained very dynamic in the New Markets.

9. Future prospects- My view:

While LOreals methods have brought it profitable results so far. Believe is LOreal focus in the segmentation to age and gender can be considered to prolong its success.

Although LOreal has always practiced differentiated marketing strategy to target several market segments, I think there is a segment which has been larger sell that is LOreal should target on Men. If so LOreal could see massive profits and success in India.

While the annual disposable income for women has experienced a significant 35% growth, the men have experienced an even more substantial and surprising growth of 65%. clearly demonstrating the greater purchasing power of the men.

As mens grooming is one of the most dynamic categories in the beauty and personal care industry. With an 8% value growth seen in 2009 , it would easier for LOreal to gain a larger market share of mens grooming in India.

Accordingly the potential for LOreal to enter the market by positioning its products similarly, as mens products for men. Success might even push them into a position to challenge current market leader Unilever.

LOreal to successfully identify markets and adapt the changing conditions in the market. It shows powers of gaining profit from ever changing market conditions, and turn difficulty into opportunity which would create problem spelled the doom for other companies.

10. Conclusion:
LOreal is a company that is fully aware of trends with products that are already in the market, so it should concentrate its efforts in those areas.

Also LOreal has the potential to further boost in profits through various methods. I have identified the Mens sector as one of the most profitable sectors in India so far, and a successful marketing in that area.

Finally, it is important for LOreal to be kept up to data about the latest trends and views of their main target markets. Just like any other firm, LOreal needs to be aware of its customers needs and wants and similarly identify the needs of potential customers. A believes is that LOreal is currently occupying a very dominant position in the market and has established itself as a trustworthy and reliable brand in the minds of consumers all over the world. By maintaining its current efforts and improving upon them LOreal will continue to enjoy its success and gain in the beauty industry.