Chapter 1. 1.1- INTRODUCTION.

Head office

LOreal Group has its head office in the Centre Eugene Schueller in Clichy, Hauts-deSeine, near Paris. The building, constructed in the 1970s from brick and steel, replaced the former Monsavon factory, and employees moved into the facility in 1978. 1,400 employees work in the building.[38] The building is often referred to as the "Beauty Factory" by the public. In 2005 Nils Klawitter of Der Spiegel said "the building, with its brown glazed faade of windows, is every bit as ugly as its neighborhood." Klawitter added that the facility "gives the impression of a highsecurity zone" due to the CCTV cameras and security equipment. The world's largest hair salon is located inside the head office building. As of 2005, 90 hairdressers served 300 women, including retirees, students, and unemployed people, per day; the customers are used as test subjects for new hair colours. LOreal USA has its headquarters in New York City, its New Jersey headquarters is in Berkeley Heights.

L'Oreal SA is a France-based cosmetic group. It is structured into three branches: Cosmetics, The Body Shop and Dermatology. The Cosmetics branch is divided into four sectors: Consumer Products, Professional Products, Luxury Products and Active Cosmetics. Consumer Products are marketed under LOreal Paris, Garnier, Maybelline New York (Maybelline NY) and Softsheen.Carson brands. Professional Products, including hair care products for use by professional hairdressers, are marketed under Kerastase, Redken, Matrix and LOreal Professionnel. Luxury Products are sold under such international brands as Lancome, Diesel, Giorgio Armani, Cacharel, among others. Active Cosmetics, which consists of products under Vichy and La Roche Posay brands, are for sale mainly in pharmacies. The Body Shop branch is focused on cosmetics on the basis of natural ingredients. The Dermatology branch consists of Galderma, a joint venture between LOreal and Nestle. It operates in Europe, Americas, Asia and Africa.

1.2 History
In 1907, Eugene Schueller, a young French chemist and future La Cagoule supporter, developed a hair dye formula called Aurale. Schueller formulated and manufactured his own products, which he then sold to Parisian hairdressers. On July 30, 1909, Schueller registered his company, the Socit Franaise de Teintures Inoffensives pour Cheveux ("Safe Hair Dye Company of France" literally "French Society of Inoffensive Tinctures for Hair"), the original LOral. The guiding principles of the company, which eventually became LOral, were research and innovation in the field of beauty. In 1920, the small company employed three chemists. By 1950, the research teams were 100 strong; that number reached 1,000 by 1984 and is nearly 2,000 today. LOral got its start in the hair-color business, but the company soon branched out into other cleansing and beauty products. LOral currently markets over 500 brands and many thousands of individual products in all sectors of the beauty business: hair color, permanents, hair styling, body and skin care, cleansers, makeup and fragrances. The company's products are found in a wide variety of distribution channels, from hair salons and perfumeries to hyper - and supermarkets, health/beauty outlets, pharmacies and direct mail. LOral has five worldwide research one in and development centers: two in one

France: Aulnay and Chevilly;

the U.S.: Clark, New

Jersey;

in Japan: Kawasaki, Kanagawa Prefecture; and in 2005, one was established in Shanghai, China. A future facility in the US will be in Berkeley Heights, New Jersey. From 1988 to 1989, L'Oral controlled the film company Paravision, whose properties included the Filmation and De Laurentiis libraries. StudioCanal acquired the

Paravision properties in 1994. LOral purchased Synthlabo in 1973 to pursue its ambitions in the pharmaceutical field. Synthlabo merged with Sanofi in 1999 to become Sanofi-Synthlabo. SanofiSynthlabo merged with Aventis in 2004 to become Sanofi-Aventis. On 17 March 2006, L'Oral purchased cosmetics company The Body Shop for 652 million.

The company has recently faced discrimination lawsuits in France related to the hiring of spokes models and institutional racism. In the UK, L'Oral has faced widespread condemnation from OFCOM regarding truth in their advertising and marketing campaigns concerning the product performance of one of their mascara brands. LOreals famous advertising slogan is "Because I'm worth it". In the mid-2000s, this was replaced by "Because you're worth it". In late 2009, the slogan was changed again to "Because we're worth it" following motivation analysis and work into consumer psychology of Dr. Maxim Titorenko. The shift to "we" was made to create stronger consumer involvement in L'Oral philosophy and lifestyle and provide more consumer satisfaction with L'Oral products. L'Oral also owns a Hair and Body products line for kids called L'Oral Kids, the slogan for which is "Because we're worth it too". Protest group Naturewatch states that L'Oral continues to test new ingredients on animals. The company states that no animal testing for finished products has taken place since 1989 and that L'Oreal has invested significantly in alternative methods for chemical safety testing,[7] though they implicitly acknowledge that they continue to perform animal testing of ingredients. Following LOreals purchase of The Body Shop, who continue to be against animal testing, The Body Shop founder Dame Anita Roddick was forced to defend herself against allegations of abandoning her principles over LOreals track record on animal testing. Calls were made for shoppers to boycott The Body Shop. L'Oreal has made quite a few statements on claims of animal testing. In 1987, L'Oral and 3 Suisses founded Le Club des Crateurs de Beaut specializing in mail order sales of cosmetic products. February 2011: L'Oreal will have the largest factory in the Jababeka Industrial Park, Cikarang, Indonesia with total investment of US$50 million and it will be ready in October 2011. The production will be absorbed 25 percent by domestic market and the rest will be exported. In 2010 significant growth occurred at Indonesia with 61 percent increase of unit sales or 28 percent of net sales.

1.3-OBJECTIVES. To Study in detail about LOreal Company. To Know about companys Profile. To study about LOreal Marketing strategies. To Study about Different range of LOreal Products. To Study SWOT Analysis. To Study Promotional Strategies of LOreal.

Chapter 2. Company Profile.

2.1- Profile.
Board of directors Current members of the board of directors of LOreal are:

Jean-Paul Agon, Chairman and CEO since March 18, 2011, Director Sir Lindsay Owen-Jones, Honorary Chairman & Director Jean-Pierre Meyers, Vice-Chairman of the Board of Directors Peter Brabeck-Letmathe, Vice-Chairman of the Board of Directors Franoise Bettencourt Meyers, Director Paul Bulcke, Director Charles-Henri Filippi, Director Xavier Fontanet, Director Bernard Kasriel, Director Christiane Kuehne, Director Marc Ladreit de Lacharrire, Director Jean-Victor Meyers, Director Annette Roux, Director Louis Schweitzer, Director

Sales, profits, etc.

In 2003, LOral announced its 19th consecutive year of double-digit growth. Its consolidated sales were 14.029 bn and net profit was 1.653 bn. 96.7% of sales derived from cosmetic activities and 2.5% from dermatological activities. LOral has operations in over 130 countries, employing 50,500 people, 24% of which work in France. 3.3% of consolidated sales is invested in research and development, which accounts for 2,900 of its employees. In 2003, it applied for 515 patents. It operates 42 manufacturing plants throughout the world, which employ 14,000 people.

Cosmetics sales by division breakdown: 54.8% from consumer products at 7.506 bn, 25.1% from luxury products at 3.441 bn, 13.9% from professional products at 1.9 bn, and 5.5% from active cosmetics at 0.749 bn.

Cosmetic sales by geographic zone breakdown: 52.7% from Western Europe at 7.221 bn, 27.6% from North America at 3.784 bn, 19.7% from rest of the world at 2.699 bn.

In 2007, LOral 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.

2.2- SWOT Analysis.

Internal Analysis

Strengths
The primary strength of the company is always keep doing the new research and innovations in the beauty so that's why l'oreal always gives best to the customers. Even in the competition market also because of the researching strategy they are the leader in the beauty and cosmetics field. Other strength of the L'oreal is that they set more attention in their particular acts and activities. Their acts and activities are going to separate in the five groups. These groups includes First is the Consumer product division in which all their range distributed through massive markets. L'oreal's products and quality available to maximum customers or consumers and their luxury international brand product division available through perfumeries, departmental and duty free shops. Their professional hair care products used by the professional hair dressers and also sold to the customers through salons. These divisions and sub-division maintains the quality of L'oreal group. The other enumerated strength of the company is L'oreal advertising strategy it also play very vital role towards the company's growth. In the course of achieving the culture of their target market advertisement is the best way.

Weaknesses
The biggest weakness which a company always facing is that its decentralized organizational structure. This problem is also faced by the L'oreal. Because of the

many subdivisions of this company it is not easy to operate and control of L'oreal. So, because of this the production of company getting slow down. Other weakness which the company faces that it that their profits. The margin between their cost price and selling price is comparatively low than their other smaller competitors. So, the profit does not match with their expectations. This is also happen because of large scale advertising and marketing. Lastly, due to its multinational marketing strategy, even there's also some diffrences occurred in the promotion and campaign of L'oreal products as to what image they are to be project.

External Analysis

Opportunities
The l'oreal company focuses on the beauty and cosmetics products for the women of all the ages. The regular demand for beauty products gives opportunity to the company to keep their focus in their specialized field, specially on the hair stying and color, perfumieries, cosmetics and skin cares. Exist as the leading brand in their field the company has well known image in the world. Even in the developing countries also. Another opportunity for the company is that taken from their greater market share due to the numbers of patents registered by the company.

Threats
The basic threat to the company is facing competition within the field of cosmetics brands. Because of the keeping going addition in the products, there's the danger that some other brand may take the profit of L'oreal. Other threat to the company is different economy. Because most of the products are only within the reach of the people of developed countries but some how L'oreal solve this problem they make products for the people of under-developed countries also. Thus the L'oreal company produce the product of best of it line even people may tell that their products are not upto their basic needs and would reject to buy the L'oreal product.

2.3-PEST Analysis.
Each and every company must follow some strategy for their existence and growth in the business. So, that's why L'oreal also follows the Pest analysis because they believe that it may have some impact on the company's present and future.

Political Analysis Political factor always make effects the business specially during the period of elections. Every government make different strategies and rules regulations so it really makes effects the business because it is not easy to adapt that changes for the whole business so that's why even sometimes company have to bear the great loss.

Economic Analysis The economy measures the strength of the policy to support the business cycle and specially in the period of recession. In terms of economic growth it is necessary to create business environment more attractive in which business can be fully establish and grow. Taxation law always effects to the way business is conducted.

Social Analysis The today's young social factor is quiet diverse. To being in the market every business needs to examine customers demand, their buying pattern and must be innovative. People wants to be more socially aware and concerned about environmental and ethical issues. Females are particularly influenced by social issues as environment or community related. Customers are very conscious about their image. They have different opinions so they will look for different brands that really suits their personality and also reflects current fashion. The society is more complex and diverse therefore the people likely to adapt diversity in their life.

Technological Analysis These days usually companies compete at global level so that's why rapid development comes in the technology.

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Chapter 3 LOREAL PARIS.

The French brand, LOreal Paris, one of the world's top beauty care brands, offer men and women on every continent beauty and personal care products that incorporate the latest scientific advances. Visionary formulas, upscale presentation and products that are a pleasure to use: LOreal Paris provides affordable luxury for people

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12

Research and development.

Our company's Research function is a vast, multidisciplinary scientific community working in more than thirty specialized fields. Diverse professionals, united by a single passion: invent and perfect innovative, high-performance cosmetic products for the well-being of men and women of all cultures. Creating molecules and active ingredients, concepts and products, expanding the sphere of life sciences while focusing closely the needs of consumers around the world Research is a driver of innovation at L'Oral. As part of our multicultural team, you will gain new knowledge and skills through scientific challenges. You will hone your instincts and advance your professional capability through the very best science has to offer inventing the future of beauty.

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Function of R&D.
Enhance knowledge on hair and skin and discover new concepts, design active molecules, and develop safety evaluation methods. Biology Researcher Tissue Engineering Researcher

Clinical Research Specialist

Biological Evaluation Researcher

Chemistry Researcher

Analytical Chemistry Researcher

Organic Chemistry Researcher

Physics Researcher

THE

MISSION

OF

L'ORAL'S IS

RESEARCH AS

AND

DEVELOPMENT

DEPARTMENT

FOLLOWS:

To increase our knowledge of skin and hair;

To study skin and hair: how they age, their pigmentation, hair whitening and hair loss and the sun's effects on the skin;

To synthesize new active ingredients;

To design and develop new products in all areas of cosmetics, including skin and hair care, hair form and color, sun protection, personal hygiene, make-up and fragrances

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LOreal has laboratories in France, the United States, in Japan and China. Our research facilities employ more than 2,900 specialists from 30 fields, including chemistry, biology, medicine, physics, physical chemistry and toxicology. Each year LOreal laboratories develop over 3,000 new formulas, which are marketed

internationally.

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Chapter 4.Range of Products in Loreal.

Creativity is the air we breathe it nourishes our inspiration and shapes our ideas, enabling us to launch 500 new products every year. At LOral, marketing which fine-tunes these ideas is right at the heart of our strategy. Interfacing with all our various operations from research to production, from sales to logistics management, including brand development and brand positioning marketing builds awareness of the products which are designed to captivate consumers across the world, anticipating fashion trends and transforming them into a source of beauty and well-being. When you join our multicultural teams youll be involved in developing and promoting our products. Youll be working in a highly competitive, fast-changing sector a sector that shapes the trends of the future. With 25 prestigious brands spanning a diverse spectrum of lifestyles, a highly challenging global marketplace, and a steady stream of brand updates and new product launches, brand management is a key element of marketing at LOral. And success in this business is all about creativity. Products of LOreal in all aspects

Lipstick

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Features Nutritive by color riche has a unique formula of Royal Jelly and Shea Butter to help keep lips smooth and soft all day long.The unique jelly formula melts onto your lips to provide nourishment and replenishment. It offers more glossy shine than a classical lipstick leaving lips looking luscious with a non-sticky finish.

Lip-gloss

Features LOreal Paris introduces Glam Shine 6 Hours, lip gloss that shines for up to 6 hours! Offering a perfect balance between shine and staying power, just one sweep is enough to achieve plump, glossy looking lips.

The heart-shaped wand is specially designed to glide over lip contours, giving a precise application. Choose from a wide collection of shimmering shades with colors ranging from natural nudes and soft pinks to glamorous reds and beautiful browns. The Glam Shine 6 Hours formula has been developed by the L'Oral Paris

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laboratories after 6 years of research and is protected by 4 patents. The Shine Fix technology creates a resistant film over the lips to help the product stay in place for up to 6 hours.

Lip Balm

Features L'Oreal Hydrafresh Lip Balm helps protecting lips from the drying effects of wind and cold weather. Apply liberally to lips and allow an excess of the balm to be absorbed. NAIL RESIST & SHINE TITANIUM

Enriched with silk protect, shock-resistance and shine protection.

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Elegant and practical in its premium gold and glass bottle, Resist and Shine Titanium has a non-slip grip brush hand

Mascara

Features The new Volume Million Lashes mascara gives a dramatic effect to the eyes by enhancing your natural lashes. It comes with a unique applicator brush that has a multitude of bristles which help to touch and colour each and every hair strand. The applicator is super flexible so that the bristles can reach both long and short lash evenly from its root to tip, so as to give a fanned out lash effect. The product comes along with an excess wiper that removes extra mascara and lets the brush be coated with just the right quantity to bring about the extra volume effect to your eyes without worrying about overload and clumps.

Double Extension Ultra Lengthening Mascara

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Lengthening Mascara Double Extension is a 2 step mascara that gives your lashes a multiplied effect. With incredible length and impeccable hold this innovative formula creates 'tubes' for a lash. L'Oreal Paris Double Extension Ultra Lengthening Mascara ... extension effect that make your lashes look 80% longer and fuller.

SUPER LINER Carbon Gloss

Superliner Carbon Gloss is liquid eyeliner in a special sponge tipped pen for the creation of fine lines or thick, sultry flicks. The intense carbon black colour is applied with precision and ease and dries without smudging. Ophthalmologic ally tested. SUPER LINER 24H

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Long lasting Gel Liner. Intense Colour results. Water Proof & Smudge Proof. Application Use the high precision brush to apply a simple line on the lash line or a thicker line for a dramatic eye effect. Simple and quick application Thanks to its soft and supple sponge tipped pen, Superliner Carbon Gloss gives a quick, easy and uniform application. Create a line as thick or as delicate as you wish. Hold the eyelid taut with your other hand to facilitate application. OPEN EYES PRO 08 Smokey Brown

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Application A) Use the round tip, apply shade 1 over the entire eyelid as a base. B) Apply Shade 2 from outer to inner corner to create depth and dimension. C) Use the pointy tip, apply Shade 3 as liner along the lid to shape the eyes. D) For a finishing touch, apply Shade 4 to the inner corner and brow bone for a bright eye look. True Match Powder

Product Features Color: Classic Ivory Exclusive triple-refined formula makes it possible to match your skin?s texture Never looks chalky or cakey Oil-free and non-comedogenic Contains skin tone enhancing pearl pigments Made in Paris Hair care

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Total repair 5- discover total repair 5 which repair the 5 signs of damage.

Colour hair- for the care of coloured and highlighted hairs.

Nurti-gloss- for normal and dry hair which special pearl extracts.

Smooth intense-for unmanageable dry hair. With argon oil extracts.

L'OREAL Hairmix Supreme

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L'OREAL Hairmix range is especially formulated for thick, dry and rebellious hair, which most Indians are born with. Formulated with natural ingredients and essential oils to nourish and smoothen thirsty, rebellious and thick hair, Hairmix will leave your hair smooth, silky, defined and control.

Apply

Apply evenly section by section to shampooed and towel dried hair. For smooth results, blow-dry the hair straight.

Serum- Anti-hair fall tonic

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Features:

Comes with a triple anti-hair fall system Get strong hair which is completely secure from the root right to the tip This product contains the Arginine essence for enhancing the growth of hair Size: 400 ml Benefits: It restructures the whole fiber of your hair so that no damage to the tresses remains once its action gets completed. It strengthens the root and gives nourishment from inside. How to use?

Wet your hair and then gently massage on the scalp. Now rinse up thoroughly. Warning: Store the bottle in a cool dark place. Use daily for getting best results.

Mythic oil

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Result

Enriched with a special blend of avocado and grape seed oil, this lightweight oil cares and pampers all hair types. Nourishing even the finest hair, the formula leaves hair looking shiny, feeling nourished and supple.

Application Before blow-drying, your hairdresser will diligently apply Mythic Oil to various sections of the hair, allowing the formula to pamper your tired locks. Followed by a look transforming blow-dry, hair is left looking shiny and feeling supple.

CASTING CRME GLOSS RANGE

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Casting Crme Gloss is a no ammonia hair colorant that gives your hair visible shimmering tones, glossy shine and covers grey. Give your hair a total beauty treatment with Casting Crme Gloss, for glossy rich, natural-looking colour with visible shimmering tones.

Our first hair colour enriched with PRO-KERATIN that protects and strengthens the hair while you colour!

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Face care

UV protection

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Benefits

Everyday, your skin faces multiple aggressions such as UV rays and atmospherical pollution that trigger the creation of free radicals, responsible for attacking cells and breaking elastin and collagen fibres. The result is a deep alteration of skin and cells function. UV Perfect gives you an inside/ out to protection against brown spots, skin darkening and premature ageing. The patented association of Mexoryl SX and XL [XL Block] provides optimal UVB and reinforced UVA protection. To prevent dullness, the formula is enriched in Detoxyl to inhibit pollutants fixation on the skin. The ultimate UV & pollution shield, for a proven longlasting protection for your skin! Night cream

The Pearl Perfect Whitening + Soothing Night Cream: Lightens skin tone and reduces brown spots overnight. Advanced Melanin-Block acts to help regulate the production of melanin at the source to fight skin darkening and brown spots.

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Soothes and reinforces the skin. UV rays, stress and pollution can lead to the creation of free radicals, which have harmful effects on skin cells, darkening the skin's surface. This cream contains Vitamin E, which is known to fight against free radicals and to lighten the skin during the night. Results: Skin is soft, supple and hydrated. From the first morning, skin is soothed and radiant. Night after night, skin is visibly fairer, more even and has a healthy glow. Revita lift day cream

The elastin fibres represent less than 5% of the fibres in the skin, yet they are essential to its elasticity. At 35, the elastin fibres decrease in number and their network fragments. The skin becomes less firm and less elastic, wrinkles begin to mark. REVITALIFT Anti-Wrinkle + Firming Day cream SPF18 is enriched with Elastin; it reduces the appearance of wrinkles and helps improve the skin's elasticity; skin feels firmer. SPF18 UV protection helps protect against the signs of skin ageing caused by the sun. Unless you want a permanent lift, there's always Revitalift

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EVERY DAY, FIGHT AGAINST THE 5 SIGNS OF FATIGUE WITH THE MEN EXPERT HYDRA ENERGETIC SKINCARE RANGE.

From science to beauty: Skincare from LOreal Paris

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Chapter 5- Comapny Marketing Strategies. 5.1- Marketing Strategies.

A. Customer Satisfaction (Product; Price) The LOreal Group is known for their continuous innovation in order to improve the quality of their products and the services they have to offer to their consumers. Part of their strategic plan is to cater to the best interest of their costumers, in other words, customer satisfaction. Through giving a wide variety of products, consumers have a whole gamut of products and services that they can choose from and which best serves their preference. The range of their prices caters to the demands of women, from the younger ones to the aging, from the affluent to those with lower budget for cosmetic products. Through constant research and passion for innovation, the LOreal Group best caters to the demands of women of different cultures. The Company also sees to it that they know the latest trend, or better yet, set the trend in the market as to attract more consumers

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b. control of the company A very vital aspect in the success of a company is how their leaders handle and run the business. In fact, the LOreal Group is very particular in the governance of the Company. The Board directors and the Board members are well aware of all of their duties required by their respective functions and of their collective mission, for it is in their hands that the Companys future depends on. The Board members are also obliged to act with due care and attention to their duties in order to carry out their responsibilities. Also expected from the Board is the strategic orientation of the control and correct running of the Company. Any transaction of the Board Members may directly affect the LOreal groups and so they are expected to act according to whats expected of them. c. Worldwide Marketing (Place of Distribution; Promotion) Part of the LOreal Groups strategic plan is the marketing of their products worldwide. From the bloom of LOreal during its primary stage, the Company already catered to the demands of women worldwide. In line with this, they are also well aware of the diversities of women around the world. Part of this strategy is to formulate products that suit other women from other parts of the world. Through research and development of their products, the LOreal group has already covered most parts of the globe and still got high approval ratings from their clients. Just recently, the LOreal Groups received the Diversity Best Practices 2004 Global Leadership Award for embracing diversity, not only in their employees, but also in their consumers (Anonymous, 2004). The Companys taking consideration of women of color is especially appreciated by its consumers for they are also being given the chance to enhance their features and embrace their diversity without having to conform with the traditional concept of beauty, particularly that of the white Caucasian women. The LOreal Group also has employees who are considered

33

minorities, such as the women and people of color. Valuing of the p eoples culture and ideas is important to the LOreal Group, in order to best serve the interest of the consumers, the employees and the Company.

D. Impeccable Advertising (Promotion) During the early days of advertising, LOreal commissioned promotional posters from various graphic artists to publicize the Companys products. The 1950s brought about a new advertising medium, particularly the movies. LOreal made its on-screen debut during this period and in 1953 won an award advertising Oscar, the first in a long series of awards. Today, LOreal takes on actresses or different personalities of all ages that best exudes the vision of the Company. Famous personalities enable average individuals to relate to their personal lives, that they can look as good, and so ensures higher sales

5.2-Promotional Styles. Advertisement. * Logo

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*Slogan When LOreal Paris's trademark slogan "Because I'm Worth It" was coined 40 years ago, it captured a feminist revolution. Now, it's trying to weather a digital one.

*Brand ambassadors To emphasize its prestige, LOreal offered itself a panel of celebrity from actresses to models and sportive and even singers male and female.

Sonam kapoor indian actress

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Aishwarya rai - Indian actress

Jennifer Lopez - singer

36

Freida pinto- international actress

Beyonce Knowles-singer

Samples.
Samples of the new product always show in the retail store in order to increase awareness of the product to the consumer and L'Oreal also hold concert market to promote their product.

37

In 2002, Mr. Sharma, the general manager of L'Oreal India Pvt Ltd, expected the sales turnover to double. So he bought the international styles to India, the Indian hair dressers will recreate the looks of customers by converting the interpreted looks in the form of services rendered to them. So nowadays, L'Oreal India has 2000 saloons across 36 cities.

Advertising: In 1920s, L'Oreal advertised around world by posters. Around 1950s, it brought a new advertising medium, especially the movies. L'Oreal made it on-screen first time during this period and it won an advertising Oscar award. Nowadays, L'Oreal takes on famous actresses or different celebrities of all ages that promote product and ensures its higher sales.

Promote through ethical issues: The first advertisement and promotion of L'Oreal product is using the image of the traditionally beautiful women. It does attract many consumers because they want to achieve the same level of beauty with what the woman looks like in the advertisement. They think the more beautiful the woman is, the more people will respond to the ad and buy the product. Consumer products- High technology products at competitive prices

distributed through mass market channel.

Professional products- It meets the requirements of hair salons and provides wide range of innovative products.

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Luxury products- Prestigious brand which offers customers products and premium services.

Active product- Dermo cosmetics product sold in specialist retailers.

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Chapter .6 LOreal Targeting and positioning its Products.

LOreal now targets the young affluent middle class females, especially those with graying hair, and also maintains some effort in targeting the masses. It saw a need to target this new untapped market for maximum profits as it not only possessed the purchasing power that masses lacked, but more critically a modernized mentality that made these people more receptive to purchasing LOreals more luxurious and expensive products.. While retaining their core values of thriftiness, [the young middle class were more willing to spend on luxuries and formed the heart of transformation of consumer spending in India]. LOreal also target women that sought benefits from using its products. Since there was previously no product that solved womens hair greying problems, LOreal introduced Excellence: Crme that promised additional benefits apart from just dying of hair. It did not damage hair like henna or ammonia but even promised to strengthen it. The young middle class fit into this segment well because unlike their older predecessors, who did not mind using products that damaged their hair as long as they were cheap due to monetary problems, these women were more educated and concerned for the need to have healthy beautiful hair, as well as more equipped with the purchasing power to do so. Cheap harmful products would not appeal to them as much as high quality LOreal products which justified their higher price with higher benefits. LOreal has not given up on targeting the lower income masses however. Demand for necessities have been increasingly driven by the rural rather than the urban sector, and as of 2008 only 29% of India lived in urban areas. Thus it has introduced new products like Colour Naturals which be used multiple times and cost only $3.10, translating into increased value for the masses. Though difficult to capture, the masses market share formed too large a proportion of the total market share to be ignored, and LOreal maintains some effort in capturing their market share, thus inducing LOreal to introduce products in this sector of the market. Excellence Crme 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. One of the most innovative and pricey products in Europe then, it was also gentler on the hair than local products such as henna or

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ammonia. LOreal hired Ms World in an advertisement to show that beautiful women use LOreal, thus positioning itself as not just a basic shampoo, but one that made women beautiful. This promise of beauty and benefits positioned LOreal higher in the market compared to the home brands which positioned themselves as cheap, value-for-money products which only served the most basic of functions of hair cleaning. In terms of how LOreal differs from other brands, it employs a more for more marketing concept while home brands used a less for less concept. Home brands sought to sell the most basic shampoos with the lowest quality ingredients in order to offer the lowest prices, while LOreal justified their high prices by using high quality ingredients. While home brands used such a concept to attract the lower-income masses that only needed bare necessities, LOreals strategy targeted the more affluent that were more educated and had more disposable income to splurge on luxury items if they justified their price. There was also a difference in how they captured loyalty. Home brands aimed to garner loyalty of existing users through brand familiarity as repeated use by generations of Indians would bring about feelings of trust and dependability. This attracted thrifty housewives who wanted the cheapest products, which translated into loyalty and substantial profits when their children grew up and also continued to use the same brands. LOreal however could not and did not try to establish brand familiarity in such a short time as it was very new in the market. It thus attempted to capture the loyalty of a new segment of the market by promising better quality products to the rising middle class, hoping they would realise LOreals higher price and better quality justified a move away from home brands to a new found loyalty in LOreal. Finally, in LOreals attempt to re-enter the lower income market, it differs from home brands by offering good quality at lower prices instead of the home brands offer of low price and low quality. While still more expensive than home brands, it was considerably cheaper than its own up market products but retained much of its quality. This translates to greater value for the masses who might switch to LOreal when they realised the better quality shampoo offered at similar prices to the home brand

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Chapter 7-Turnaround of LOreal.

After a poor start, LOreal approached the market with a different concept. Presence of home brands posed problems as they had already captured a large proportion of the masses market share. They offered cheaper products to buyers at a price which LOreal was unable to match. With the understanding that it needed to capture a different market, it proceeded with a different from of segmentation in order to better identify its target segments.

Income Segmentation: This time LOreal separated a new segment from the original 2 segments: the quickly rising middle class which was gaining in affluence. This was very specific compared to the original two broad segments it identified as they saw that this was the fastest growing income class that represented a highly untapped market potential due to their radically different mindsets from the masses.

Psychographic Segmentation: LOreal segmented India into different groups based on their thinking and behavior from the older, more conservative Indians who held conservative values of thriftiness more strongly and stubbornly, and the younger more impressionable generation who had developed a very different and westernized view on spending and culture. Influx of brands like Tommy Hilfiger, Benetton and even MTV in 1991 greatly emphasized Western values of luxury, beauty, and selfawareness leading to the rise of a new segment of people who did not view thriftiness with equal importance as their predecessors but were rather more willing to splurge on luxury goods which were previously considered too expensive and wasteful.

Age Segmentation: By segmenting the market into the younger middle class from the more conservative, often older Indians, it had also inevitably 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 Crme. Being in crme form, it [was gentler on hair] compared to the natural ingredients.It thus segmented the market into those who needed the hair dying and strengthening benefits of Excellence Crme and those who did not. This was a crucial form of segmentation for LOreal as it underlined the core concept of its marketing strategy to promise superior products with additional benefits to consumers when choosing between LOreal and Home brands.

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Chapter 8 - Data Analysis.

1. How did you come to know about the LOral brand? Through advertisement Word of mouth influence Internet

Number correspondent 100

of Advertisement

Word of mouth

internet

50

30

20

loreal

advertisment word of mouth internet

2. For what purpose you use LOral product? Eyes Face Lip

43

Nail

Number correspondent 100

of Eyes

Face

Lip

Nail

15

50

20

15

USEAGE
60 50 50 40 30 20 20 10 0 eyes face Series 1 lips nail 15 4.5

3. What do you think about the price of LOral products? High Low Medium

44

prive level
high low medium

4. In which field you want to see innovation from the LOreal? Cosmetic Skin care For men Hair care Number correspondent 100 45 25 5 15 of Cosmetic Skin care For men Hair care

45

innovation cosmetic for men skin care hair care

17%

5% 50%

28%

5. Does celebrity endorsement attract you towards brand? Number of correspondent 100 Yes 65 no 45

celebrity endorsement
no 35%

yes 65%

46

6. What inspire you to go for any cosmetic product? Number correspond 100 30 15 40 15 of Quality Packaging Colour other

Sales
10% 36% packaging

quality

39%

colour

15%

other

7. If not LOral then which other brand do you recommend? Number of Revlon Avon Lakme Oriflamme other

correspondent 100 25 15 30 15 15

revlon

competitor brand avon lakme oriflame

15% 15% 15% 30% 25%

other

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Chapter 9 . Conclusion
LOreal is a well-known brand around the world and easy to get it across the world. It sets the fashion trend. With the passage of time they increase its strength and reduce the weaknesses. The company very much emphasis on the advertisements to keep its name in the public.

The present study comes to the floor with the revelations having e x c i t i n g a n d f u l l o f curiosity determinants in relation to the specified objectives to understand and analyze the4P aspects of marketing for Loreal. Further the study helped in identifying the reasons which stops the customers to buy Loreal Products over other products and to understand customer Brand knowledge with regard to L Oreal As the study has been conducted, in t h e context of Indian customers (where interviewed customers are fromMumabi,the investigation perspectives have been thrown, con d i t i o n i n g t h e specified motives of Indian people, putting aside the motives outside India. The research c o n d u c t e d w a s a l s o h e l p f u l i n i d e n t i f y i n g t h e f r e q u e n c y o f p u r c h a s e a n d u s a g e o f t h e Loreal products.

Following are the few key findings of the study:

70% of the total working respondents use Loreal products. 84% of the total non working respondents use Loreal product.

78% of the working respondents users use both hair and skin care products,whereas 18% uses only hair care products by Loreal and 4 % o n l y s k i n c a r e products. In non working respondents 47% uses both skin and hair care products by Loreal 25% only hair care and 28% skin care products.

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Among the non users of the Loreal products 64% are happy with their current brand, 18% find Loreal products ineffective and 14% people find the price of the products a major concern.

TV is the most popular source of information and awareness regarding Loreal products. Shampoos & Conditioner are the most popular Loreal products. Only 40% of the users said that Loreal products are available at every store. 82% of the Loreal users are satisfied with the products.

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Bibliography.
Websites:
www.lOreal.com en.wikipedia.org www.indiatimes.com www.yahoo.in

Magzines: Marvah Vouge

50

Annexure
1. How did you come to know about the LOral brand? Through advertisement Word of mouth influence Internet 2. For what purpose you use LOral product? Eyes Face Lip Nail

3. What do you think about the price of LOral products? High Low Medium

4. In which field you want to see innovation from the LOreal? Cosmetic Skin care For men Hair care

51

5. Does celebrity endorsement attract you towards brand? Number of correspondent 100 Yes 65 no 45

6. What inspire you to go for any cosmetic product? Number correspond 100 30 15 40 15 of Quality Packaging Colour other

7. If not LOral then which other brand do you recommend? Number of Revlon Avon lakme Oriflamme other

correspondent 100 25 15 30 15 15

52