Global marketing - Strategies by L'Oreal

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الرحمن الله بسمالرحيم

"IN THE NAME OF GOD, THE MOST GRACIOUS, THE MOST MERCIFUL."

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Presentation by - AMMAR SIDDIQUE

3Agenda :1) INTRODUCE TWO COMPANIES

2) THEIR MARKET STRATEGIES

3) EVALUATE

4) RECOMMENDATIONS

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L’Oreal

5Company Overview

The L’Oreal Group is the world's largest cosmetics and

beauty company

registered office in Paris

They have made cosmetics the focus of all their energy

L’Oréal holds 10.41% of the shares of Sanofi-Aventis, the

world's number 3 and Europe's number 1 pharmaceutical

company

6There Mission:“BEAUTY FOR EVERYONE”

L’Oréal is committed to carrying out its mission to make beauty universal in a sustainable and responsible way. Ranked amongst the 100 most sustainable and ethical companies in the world. To help make the world a more

beautiful place

7Target Segmentation:CUSTOMER CHARACTERISTICS DEPENDING ON CONDITIONS VARIES SUCH AS; DEMOGRAPHIC, GEOGRAPHIC, SOCIOECONOMIC, LIFESTYLE/PERSONALITY.

Demographic Age, marital status, gender

Geographic Global, hemispheric, national, state, city, postal code, climate, rural etc. urban

SocioeconomicIncome, class, vocation, education, religion, ethnicity.

Lifestyle/personalityAttitudes/opinions, interest, tastes and preferences

8Company Marketing Strategies

• CUSTOMER SATISFACTION (PRODUCT; PRICE)

• WORLDWIDE MARKETING (PLACE OF DISTRIBUTION; PROMOTION)

• IMPECCABLE ADVERTISING (PROMOTION)

• PRODUCT DIFFERENTIATION

Main worldwide players

9Market Segmentation in Pakistan:

PAKISTAN’S BEAUTY CARE MARKET IS VAST AND DIVERSE.

DECADES PAKISTAN’S BEAUTY MARKET HAS BEEN DOMINATED BY FMCG COMPANIES SUCH AS PROCTOR & GAMBLE, RECKITT BENCKISER, UNILEVER PAKISTAN (AND OTHERS)

WHEN INTERNATIONAL ‘PURE BEAUTY’ BRANDS HAVE BEEN MADE AVAILABLE IN PAKISTAN IN THE PAST (ESTÉE LAUDER, L’ORÉAL, ETC.), THEY WERE IMPORTED EITHER THROUGH LICENSED DISTRIBUTORS OR GREY CHANNELS, AND WERE THEREFORE NOT MARKETED AT ALL.

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Pakistan’s overall beauty market have been influenced because of these reasons:

• INCREASED MEDIA EXPOSURE AND CHANGES IN LIFESTYLE AND MINDSET INFLUX OF INTERNATIONAL BEAUTY BRANDS

• EXISTING KEY PLAYERS HAVE STEPPED UP THEIR EFFORTS

• NEW LOCAL BRANDS ARE EMERGING

11Promotion strategy of L’Oreal In Pakistan

New Initiative for Promotion Imaginative Musical Promotion: Hiring celebrities Internet Fashion shows

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Porter's five forces analysis for L'Oreal BARGAINING POWER OF SUPPLIER BARGAINING POWER OF BUYER THREAT OF NEW ENTRANTSBoston Matrix of

L'Oreal and its competitors

13Boston Matrix of L'Oreal and its competitors

Star position

Procter and Gamble

Avon cosmetics

Question mark

L'Oreal

Cash cow

Star

No company

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Face fresh

15Company Overview

• THE MOST HIGHLIGHTED LOCAL COSMETIC COMPANY

• FACE FRESH CAME INTO EXISTENCE IN 2007 AS A COSMETICS MANUFACTURING COMPANY

• AWARD-WINNING BRAND OF THE YEAR.

• CORE FOCUS IS TO PROVIDE HIGH QUALITY AND EFFECTIVE SKIN CARE PRODUCTS

• INVESTMENT IN THEIR RESEARCH & DEVELOPMENT

16Market Analysis• FACE FRESH COSMETICS HAVE LAUNCHED A COMPLETE LINE OF

PRODUCTS INCLUDING FACE FRESH CLEANSER CREAMS, FACE FRESH FACE WASH, BEAUTY CREAM, BEAUTY SOAP AND WHITENING SOAP

• CLINICALLY PROVEN AND TESTED INGREDIENTS

Target Market• 64% OF THE TOTAL POPULATION OF PAKISTAN RESIDES IN THE

RURAL AREAS

• MEDIUM LEVEL OF INCOME

• WOMEN WERE TARGETED BY THE COMPANY

17Marketing Mix• PLACE

• PRODUCT

• PRICING

• PROMOTIONS

• ADVERTISEMENT

Business Level Strategy--Cost Leadership

18PESTLE Analysis POLITICAL SOCIAL TECHNOLOGICAL LEGAL ENVIRONMENTAL

19BCG Matrix

20Recommendations:

1. Improving Perceptions

2. Focused Advertisements

3. Extending Product Line

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Thank you