LOreal Paris story:

As the top beauty Brand sold in retail outlets, LOreal Paris makes the most innovative
products accessible to everyone. Its ambassadors embody a certain beauty ideal summed
up in the legendary signature: Because youre worth it.

L'Oreal Paris shares a unique vision of beauty, supported by 35 diverse international

ambassadors, icons such as Jennifer Lopez, Beyonce Knowles, Freida Pinto, Jane Fonda,
Eva Longoria, Julianne Moore, Liya Kebede, Fan Bingbing or Hugh Laurie. Each year,
L'Oreal Paris magnifies its beauty ambassadors and worldwide celebrities from nearly 20
international red carpets, including the Cannes Film Festival, for which LOreal Paris has
been the Official Makeup Artist for the last 17 years. The Film Festival provides the
constantly renewed opportunity to highlight the superiority and expertise of its products
accessible to every consumer

One of the most recognised brands in Australia, LOreal Paris is our one of our signature
brands. Key to its success has been our brand strategy, the engagement of key
ambassadors and our significant growth across all facets of beauty.
History of the brand:

In 1907, a young French chemist Eugene Schueller developed an innovative colour

formula.
In 1909, he registered his own company.
In 1920, the small company employed 3 chemists.
In 1912, Eugene started to export his products.
In 1993, he created and launched Vortre beaute, a magazine devoted to women.
In 1953 LOreal win an advertising Oscar.
In 2010 LOreal introducing more then 27 international sub brands.
About the industry:

The cosmetic industry is a profitable business for most of the manufacturers of cosmetic
products.
The cosmetic industry world wide seems to be continuously developing, many famous
companies sell their cosmetic products online also in countries in which they do not have
representatives.

Operations:

LOreal is the world largest cosmetics and beauty company. They have over 27 branded
products.

This brand concentrates on :

Hair colour
Skin care
Sun protection
Hair care
Make up
LOreal Paris

LOreal is richly endowed with a portfolio of international brands that is unique in the
world and that covers all the lines of cosmetics and responds to the diverse needs of
consumers the world over.

LOreal Group has sub brands or 27 international brands are as below.

LOreal Slogan:

Because i worth it

LOreal Logo:
LOreal Strategy:

Good brand management was all about hitting the right target audience with the
right product. Maybelline success provide LOreal great opportunity and it is big
example of their success. In depth analysis of market and consumer data in order to
build strategy and recommend action plan

Complete knowledge of competitors and products in the markets

Responsible of launches from start to end, including choosing and recommending

products from global portfolio, communication platform assessment, re-work of
global communication assets and Point-of-sale

Brand Diversity:

Famous for its huge brand diversity and brand management in different culture and
countries.
Responsible for giving direction and support to the team on a daily basis

Organises the teams workload : managing workload/timelines and projects across

the team

Assessment, development and coaching through regular feedback with visibility on

evolution for all team members
 In charge for the teams mid and end year reviews, objectives setting and
training/development recommendations

LOreal Segmentation and Target Market:

Middle and working women are the main target of the company also target their product
to older women. Their slogan is because we worth it shows that the product is luxury
and it suggest the product could be expensive. L'Oreal, the world's largest cosmetics and
beauty company, was founded in 1907 by the French chemist, Eugene Schueller. After a
little over a century of steady growth, L'Oreal has jumped from being a small family
business to become the worlds leader in the cosmetics industry. Today, the L'Oral group
has regions in more than 150 countries in the world that are home to 283 branches, more
than 100 agents, 50,491 employees, 42 factories, and more than 500 high-quality and
popular brands of cosmetics.

In order to clarify different product positioning in Asia, L'Oreal decided to move from
the open-shelf brand in Europe up to the top international brand in Asia. In Asian
countries, L'Oreal set up their counters in upscale department stores according to the Asia
specific marketing channel strategy. However, this accessible luxury brand strategy did
not meet the levels of success they anticipated.

Point of Parity and Point of Difference:

LOreal does not appreciate point of parity its means they do not want to provide
same as their competitors provide. They believe to provide product different from
their competitors e.g they provide different product from their competitor P&G and
Kevin care.
Differentiation:
Home brands aimed to garner loyalty of existing users.
 By promising better quality products to the rising middle class.
Invested heavily in training and education to boost their status in the community.

Brand Positioning:
Company has a strong and long term brand positioning specially within a minds of
middle age women and teenage girls.
LOreal hired Ms World in advertisement. LOreal has historically carried a premium
image and price tag. It used dual strategy in India. LOreal reduced its hair colour price
by 25% in 2010 after it become local production and resorted it to another 4% price cut
this year.
The positioning statement of LOreal can be.

FOR THE ANGELIC WOMEN WHO ARE THE EPITOMES OF BEAUTY,

LOREAL IS THE BRAND THAT BRINGS OUT THE GOODNESS IN YOU!

Brand identity Pyramid:

1. Brand Relationship:
Women strongly trust LOreal they use their product as beauty
partners. They considered LOreal as their beauty consultants and
look LOreal as their home member who look after their skin so
warmly.
2. Brand reflection:
Brand reflection of LOreal as the women said I can benefit from
the experties and the experience of the worldwide leader of skin
care at an affordabel prices.
3. Brand Image:
Brand image of a LOreal ad LOreal considered a skin partner.
Thanks to LOreal by saying IM beautiful and powerful women IM
worth it and I want people to see it.
4. Brand Personality:
Brand personality is defined as the human traits and
characteristics associated with aspecific brand. Consumer buy
brands that resonates with them. Consumer think about brands
the same way they think about their family, their friends, their
fellows and public figures. LOreal can a women who is Passionate
with self image, confidence, innovative, open minded and well the
success.
 5. Brand Physique:
Women skincare dedicated to all women.

OTHER DIMENSIONS OF BRAND

Brand Equity of LOreal:
The popular brands in the world have something in common which gets them known
globally. It can be any brand from clothing to cosmetic, cars, household or any. Brand
equity is the power of the brand derived from the name recognition which is earned by the
brand overtime in the eye of consumer.
The higher the sales volume, the higher the profit margins would be competing other
brands. The brand equity of LOreal is higher than any other cosmetic brand around the
world. It is the world leader in beauty presenting in 130 countries on five continents. The
mission of LOreal is to provide the best innovative cosmetics to men and women with
respect of the diversity.

Brand Awareness:
LOreal create awareness through establishing many education centers in different
countries. LOreal conducted program related to hairdressers. LOreal create awareness
through different advertisements and also through different jingles in advertisement.
LOreal has a high brand awareness among its customers. This awareness include :

Their passion for innovation, performance, style and thanks to the because youre worth
it philosophy. L'Oreal's famous slogan attempts to create stronger consumer involvement
in L'Oreal philosophy and lifestyle and provide more consumer satisfaction with L'Oreal
products.

Brand consistency:
 LOreal focus over all to improve and develop the different brand it acquired in different
region. Maybelline is the best example of LOreal brand consistency. LOreal focus on
continuous improvement in their all products and try to maintain their standard with great
consistency.

Distribution channel of LOreal Paris:

Distributed is done with respect to its need and is cost effective. LOreal used Agents and
consignments to USA, Japan and other Asian Countries

Market penetration:

Because you are worth it! says Beyonce in the LOreal commercial claiming to be for
the realwomen. Mighty Tasty says Sam Adams! Is the product actually good or our
minds are being played with? There have been times when we hear about a particular
product doing well in the market or our peers, friends and family talking about and
recommending it.
Brand Resonance of LOreal :

Brand Imagery :

LOreal has been one of the most reputed brands in the cosmetics field. LOreal has carved
a niche for itself with its unique strategies and stands out from the other cosmetics brands.
The LOreal group develops several important communication campaigns every year that
underline the ability and the growth of the group.

Brand Judgements:

LOreal is reaching out to more people across a bigger range of incomes and cultures than
just about any other beauty-products company in the world. examples of costumers'
opinion : Leader , very strong brand , loyalty , strong control over its promotion ..
Brand Feelings:

L'oreal 's customers emotional responses and reaction with respect to the brand. LOreal
formed in France, Paris, brings the sophistication and elegance consequent from its French
heritage to women and men all over the world. LOreal Paris offers leading-edge products
that out-perform the competition to people who care more about the way they look.

Brand Performance of LOreal:

Company was brilliant in identifying the needs, cultures and aspiration of different kind of
custumers in different region. LOreal known as the scientific beauty company or use
science based approach. Branding Strategy of LOreal has enabled the company to spread
its business not only in Europe but also in Asia and Latin America(global presence).
LOreal has been successful in generating a worldwide Brand Identity thanks to its
powerful and efficient Branding Strategy. Business is present in 150 countries with a
turnover of around13.7 billion Euros.

Brand Resonance:
The LOreal Group performance is marvelous due to its distribution channel too. The
company focuses on go native strategy mean hire local firms in every country to
distribute its products. Secondly, First landing strategy that is first commercialization is
bad thing if the product is not available in a particular place. It has two bad impacts on the
company: one would be if product is not at a particular place and company runs there
commercials the negative word-of-mouth generate due to the consumers effortless struggle
to search the product. The other is the huge advertising budget shatter due to pointless
direction. The company by itself monitor, control and evaluate its channel performance
especially distributors. The company follow same marketing mix foe the whole world with
a little bit variation according to the economic conditions of a certain country. LOreal is
known for its strong control over its promotion, place, price and packaging strategy, which
is decided from the headquarters. For these points, only minor product adaptations are
made in different countries such as labels languages.
What makes LOreal so powerful?
So what makes Loreal so powerful? What are their brand elements, mantra, value and the
salience of LOreal?

Brand Element

It can be transferable within and across product categories to support line and brand
extensions, and across geographic and cultural boundaries and market segments. LOreal is
The world leader in beauty, it is present in 130 countries on five continents. The group is
entering its second century of beauty with an even stronger belief in its mission: provide
the best in cosmetics innovation to women and men around the world with respect for their
diversity.

Memorable

A memorable brand is a brand that you will remember. When you hear the name Loreal
you know what the brand is and you know that they are in the beauty business. They are so
easily recognized not only because of there logo wich is easy recognized and name but
also of there strong advertising.

Meaningful

In beautyland LOral is definitely meaningful. LOral presents a various types of

products. But what is a meaningful brand? A brand that improves the well-being of
peoples lives in a tangible, significant and fulfilling way. In this time where beauty is very
important in the society. Celebritys are more watched than ever. People like to be
beautiful and identify themselves with celibrities. LOral understands and exposes that
very brilliantly in there products and campaignes.
Likable

Elements must be fun. What does it mean to have a likeable brand? Because of the
characters they use in there advertisement the LOral brand becomes very likeable brand
for the women who like beauty. The beauty commercials and the the adds represent a
certain type of woman. So likeable YES. But specific for a type of woman.

Transferable
Brand elements can be transferable within and across product categories to support line
and brand extensions, and across geographic and cultural boundaries and market segments.
The universal character of Loreal embodies that. They want to reach different cultures and
represent different types of beauty. Thats also why they are active in 150 countries with
there products.

Adaptable.

Brand elements should be as possible, competitively defensible. Which in the Loreal case
is obvious. Although i think for a specific target group.

Protectable

Elements must be legally and competivelly. That means they must be legally protected. For
a brand like Loreal is that neccessary.

(The first three criteria are the marketers offensive strategy and build brand equity. The
later three, however, play a defensive role for leveraging and maintaining brand equity in
the face of different opportunities and constraints.(Keller, 140)

Brand Mantra:

When you watch an advertising of LOral the brand mantra shines through. A brand
mantra is at its most powerful when it becomes a deeply resonant piece of the DNA of the
organization. So whats the brand mantra of LOral? LOral emphasizes about how
important it is to take care of yourself but more important to become more yourself. So on
you can say the brand mantra of LOral is: It represents the essence of the LOral brand
as a whole, a spirit wich is about helping every woman embrace her unique beauty while
reinforcing her innate sense of self worth.

Brand Value:

Loreal is a leading player in the beauty and skin care market and competes with companies
like Revlon, Avon, Proctor & Gamble and Estee Lauder. Our price estimate of $22.74 for
LOreal is slightly above the current market price.

Salience versus competitors

Salience is about how many consumers regard it well, or well enough, or see it as
salient. So what can we say about Loreal? Created in France, LOreal Paris brings the
sophistication and elegance derived from its French heritage to women and men all over
the world. LOreal Paris offers leading-edge products that out-perform the competition to
people who care more about the way they look. Their passion for innovation, performance,
style and a sense of premium is encapsulated in the because youre worth it philosophy.

Marketing mix of LOreal:

1. Product

Hair colour, Skin care, Sun protection, Hair care, Make up, Perfumeshe products are for
the consumers eyes, lips, nails, hair development. It contains hair color, hair styling, and
hair care products. The skin care products are the truth about aging, moisturizers,
treatments, cleansers, make up removers, sun care, self-tanner etc.
L'Oreals innovations always start from its luxury brands then penetrate to the brands in
different price level and different markets eventually implemented in its consumer brands.

2. Price

Luxury or expensive prices of this products are highly moderate, what this brand charges
is worth giving. It has the proper pricing strategy for each and every brand of their product
line. If the quality is higher than another they charge a little bit more than the other
product. So basically they are following contrast of value based & benefit pricing.

3. Place

International brandTheir position statement for L'Oreal products from the Garnier
Institute are: "The combination of beauty and fashion". On the other hand position
statement for all other L'Oreal products are: "All natural, all for you. So by highlighting
their natural factor they are differentiating themselves form others. Their distribution is
highly appreciated because each and every cosmetic shop, their target consumers can get
our desired products from the brand LOreal, so consumers are not disappointed by their
distribution channel in any ways rather they are highly satisfied to have this renowned
brands beside their hands. LOreal told their consumers

4. Promotion:
LOreal hired Ms World in advertisement. LOreal has historically carried
a premium image and price tag. It used dual strategy in India. LOreal
reduced its hair colour price by 25% in 2010 after it become local
production and resorted it to another 4% price cut this year. Because you're
worth it"- Undoubtedly talking about the most prominent skin care brand LOreal. LOreal
is a cosmetics, skin care, hair care brand which has grabbed a lot of attention from the
consumers specially the female consumers heart. It has lots of beauty care products.

Role if Integrated market communication (LOreal IMC)

Integrated Marketing Communication(IMC) is a concept of marketing communication

strategy that deals with all of the firm's marketing activities.It helps the brand to
communicate with its customers and build a better promotion planning.
L'Oreal is the world's largest beauty and cosmetics company. It has various cosmetic
products such as hair colour, skincare, sun protection, make up, perfumes and hair care.

1. Advertising:

LOreal done advertising activity through different means e.g Newspaper, Television,
Radio, Bill boards. All the channel cover massive consumer and provide brief information
about the brand.

2. Sales Promotion:

For selling activities LOreal has some selling activities that are:

Discount coupons, loyalty clubs, membership coupons, incentives, attractive packages.

3. Personal selling:

In personal selling product quality and the customer are main focussed and individually
sell out the products. In it highly depend employee creativity and innovation. LOreal
strengthen the relation between product and the end users. The expectation of the
customers are the main point in personal selling. LOreal try to provide customized
products.

4. Direct marketing:

In direct marketing E.mail, Text messeges, catalogs, brouchers and promotional letters are
include. In direct marketing the customer knowledge are more enhanced and LOreal try to
capture the more target market through direct marketing.

5 Public relation:
 In public relation of LOreal Press releases, Brand Ambassadors and Professional Beard

Stylist are mainly or highly focused.

6 Internet Marketing:

LOreal contribute toward internet for enhancing more customer knowledge. In internet
marketing include official websites in which all the information regarding brands are
available. Facebook, twitter, E magazine and pop up ads are major examples of their
contribution towards IMC.

LOreal Development process:

LOreal is a well established company in fashion business and in order to maintain its
superior standing in the global market, it has to lay considerable emphasis on the
strategies it employs for development of new products. Fashion has been defined by Paul
F. Nystrom as nothing more or less than the prevailing style at any given time (Hines &
Bruce, 2001). Two important concepts can be derived from this concise definition: firstly,
a style is not fashion unless it is commonly accepted (prevailing); secondly, fashion is
transient (at any given time). These characteristics of the fashion phenomenon had
profound implications for the supply chain, the product life cycle and the complexity of
the markets served by LOreal and its competitions.

Baranding challenges of LOreal:

Western Europe, L'Oreals leading regional hair care market, contributed to the loss in the
global hair care market share. L'Oreal lost market share across key hair care categories
including colourants, shampoos and styling agents in Western Europe. Henkel posed a
strong competitive challenge in hair care in Western Europe, performing strongly on the
back of its value for money brands.

Henkels salon hair care brand Syoss appealed over other available brands in the market
due to its salon positioning and affordable price points, experiencing strong market share
growth in the region in 2011. In 2011, L'Oreal lost share in two key Western European
markets to Henkel. In France, L'Oreal lost 20 basis points, while Henkel gained 120 basis
points. Syoss was a star performer gaining 80 basis points. In Germany, Henkel gained 30
basis points, while L'Oreal lost 60 basis points. As has been the case in France, Syoss
performed well in Germany, gaining 50 basis points in market share