L’Oréal Marketing Strategy – Marketing Strategy of L’Oréal

L’Oréal Marketing Strategy – Marketing Strategy of L’Oréal:  L’Oreal the cosmetic and personal treatment French company was established with the help of Eugene Schueller in the year 1909. The company that has so many brands within its portfolio is now the largest cosmetics manufacturer, with a focus on the product categories like Cosmetics, Skincare, Make-up, and perfume, as well as hair care.

The company has invested over $1000 million in research and development and registered 498 patents in the year 2017. In 2017 it has sold its “The Body Shop” brand business to Natura Cosmeticos for $1.2 billion.

L’Oréal At A Glance – Marketing Strategy of L’Oréal

L’Oréal Marketing Strategy

[wp-svg-icons icon=”office” wrap=”I”] Company :  L’Oréal

[wp-svg-icons icon=”user” wrap=”I”] CEO:  Nicolas Hieronimus

[wp-svg-icons icon=”user” wrap=”I”] Founder: Eugène Schueller

[wp-svg-icons icon=”calendar” wrap=”I”] Year founded: July 30, 1909, Paris, France

[wp-svg-icons icon=”location-2″ wrap=”I”] Headquarters: Clichy, France

[wp-svg-icons icon=”stats” wrap=”I”] Annual Revenue:  €29.87 billion

[wp-svg-icons icon=”bars” wrap=”i”] Profit | Net income: €3.75 billion 

[wp-svg-icons icon=”users” wrap=”I”] Number of employees : 88,000

[wp-svg-icons icon=”pie” wrap=”i”] Products & Services: Skin care, Personal care

[wp-svg-icons icon=”globe” wrap=”I”] Website:  loreal.com

L’Oréal Competitors

[wp-svg-icons icon=”pacman” wrap=”I”] Competitors: MAC | Maybelline | Dior | Chanel | Urban Decay | Clinique | Lancome | Estee Lauder | AVONLAKME


L’Oréal Fun Facts: The birth of L’Oréal. Liliane’s father Eugene Schueller was the son of two Parisian pastry shop owners. … He soon changed the name of his fledgling company to L’Oréal, another word for “Auréale,” a popular hairstyle of the era, as well as a play on the word auréole, or “halo.”


Marketing Strategy of L’Oréal

L’Oréal Marketing Strategy

L’Oréal’s Marketing Strategy covers various aspects of the business right from segmentation and targeting to the overall mission and vision of the company and the various parameters which the company executes to become the top brand that it has in the market. So what is the Marketing Strategy of L’Oréal? Let us discuss.

Segmentation, Targeting, Positioning – L’Oréal Marketing Strategy

L’Oreal has divided its market by population aspects like L’Oreal LUXE for middle – and upper-class customers that wear makeup as an identity, Dark & Lovely for African women Professional products to offer customers to enhance the appearance of individuals customers. 

To focus on different segments of customers, using its 34 brands in various product categories, the company has developed differentiation strategies to specifically target middle to upper-middle and upper-income class customers, workers and those who wish to showcase their personalities. 

The brand has established itself as the most responsible makeup and Company with a focus on Universalisation i.e accepting the different cities in the cultures, preferences, and hopes of both the external and internal stakeholders. 

L’Oréal Mission Statement

“To enable all individuals to express their personalities, gain self-confidence and open up to others.”

L’Oréal Vision Statement

“To win over another one billion consumers around the world by creating the cosmetic products that meet the infinite diversity of their beauty needs and desires”

L’Oréal Tagline

“Because I’m Worth It”

L’Oréal Marketing Strategy

Competitive Advantage – L’Oréal Marketing Strategy

Diversity in the workplace:  

The company has always believed in the importance of diversity and universalization that is currently operating with 34 brands, with the majority of employees from around 158 nations that support the company in over 150 countries worldwide. 

Strong Brand Portfolio:

The Company is home to a vast collection of brand names including consumer products The brand portfolio includes Paris, Garnier, Maybelline, NYX, Nicely, Dark & Lovely, Essie, and MG.L’Oreal L’Oreal LUXE: Lancome, Yves Saint Laurent, Giorgio Armani, Kiehl’s, Urban decay, Biotherm, it cosmetics, Ralph Lauren, Diesel and more. Products for professionals: L’Oreal Professional, Redken, Matrix, Decleor, Pureology, and Kerastase. 

Active Cosmetics: La-Roche-Posay, Vichy, Skin Ceuticals, CeraVe, and Roger & Gallet. 

BCG Matrix – L’Oréal Marketing Strategy

The company operates worldwide through four business units strategic to its operations ( SBU) including Consumer products, L’Oreal Luxe, Professional Products, and Active Cosmetics. 

The division for professional products earned revenues of $4007 million and negative growth of 1.4 percent corresponding to the year 2016. Consumer products, L’Oreal Luxe, and Active cosmetics businesses generated revenues of $14494 million, 10132 million, and $2870 million, with an increase of 1 percent, 100.6%, and 11,9 percent, respectively, for 2016. 

In these industries because of stagnation and competition from a vast number of companies, Professional products is the most questioned mark on the BCG matrix. BCG Matrix while the rest are businesses are the top performers on BCG’s matrix. BCG matrix. 

Distribution Strategy – L’Oréal Marketing Strategy

It has been selling its products via traditional channels like retailers, wholesalers, Pops & Mom stores as well as online websites. 

E-commerce sites play a significant part in distribution since the channel the company witnessed a growth of sales up to 34% in 2017 compared to. The online sales of the company amounted to $2.5 billion in 2017. Furthermore, through the Travel Retail channel i.e. duty-free stores at Airports the company has recorded a sales rise of 19 percent (In 2017, 2017).

It has focused on the New markets (40.5 percent sales ), in Asia-Pacific, of which Asia-Pacific contributes 23.6 percent) in addition to Western Europe (31.2% sales) and North America (28.3%). 

Brand equity – L’Oréal Marketing Strategy

L’Oreal group is ranked 133rd place on the Forbes list of the top international performers, and 379 379 on the Fortune 500 magazine list. The company has been included in the Fortune 500 list for 23 years. The company is valued at $107.5 billion using Market Capitalization (as of May 2017). 

The latest innovations in the fields of beauty care and cosmetics have enabled the company to win numerous honors and awards over time, such as World’s most ethical corporate award by the Ethisphere Institute, Pan European awards, etc. 

Competitive Analysis – L’Oréal Marketing Strategy

The Company has adopted various strategies, including enhancing the skills of its staff, increasing online visibility, and partnering with startups ups like Station F, Partech Ventures, and Founders Factory to stay ahead of the competition. 

The insatiable desire of consumers to get the best quality products increasing urbanization and growing awareness of social acceptance are just a few of the elements L’Oreal uses to compete in the marketplace. It competes against companies like Revlon, Lakme, Proctor & Gamble, Unilever, and others. 

Market Analysis – L’Oréal Marketing Strategy

The market is segmented by the type of product that the company offers, such as makeup, skincare, haircare, and fragrances. 

There has been an increase in demand for the products offered by the brand in the Asia-Pacific region (12 percent) growth in sales and the brand has also strengthened its category of makeup and skincare by implementing the development of new products design with extension strategies for its product lines. expansion strategies. 

Customer Analysis – L’Oréal Marketing Strategy

With its various business divisions, L’Oreal serves businesses as well as individual and retail customers. 

In the business sector, its clients are Salons, Beauty salons spas, recreational outlets, and SPAs that serve customers with the top items of L’Oreal. 

In the retail segment, its target is the younger, middle-income as well as upper-social class consumers between 20-45 years old who prefer to purchase the finest cosmetic products with no negative consequences. 

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