L-Oreal-ppt-new

Overview of L'Oreal

Market analysis

Study of 4P’S

Market Presence

Conclusion

Overview Of L’Oreal L’OREAL Group - worlds largest cosmetics and beauty company

Founded in 1909 by Eugene Schueller L’Oreal has explored the fields of cosmetics like hair care, hair color, skin care, sun protection, and perfumes.

L’Oreal is also active in dermatological and pharmaceutical field, which makes L’Oreal the top nanotechnology patent-holder in United States

L’Oreal has global market share of 17%

Brands Under L’Oreal

Garnier Kérastase Kiehl's Oréal Professionnel L cont. Lancôme Maybelline Pureology Redken The Body Shop Vichy cosmetics

L’Oreal India L’Oreal entered Indian market in 1990, in partnership with MU group with the Ultra Doux range of hair care & lip care products

In 1994, L’Oreal set up its wholly-owned subsidiary for marketing its consumer products in India

L’Oreal has set up its own manufacturing plant in Pune, Maharashtra

SKIN CARE INDUSTRY IN INDIA- MARKET ANALYSIS The skin care market is valued at $180

million in India. With safe and effective procedures, advancement in medical technology, increase in awareness, the Indian Skin care solutions business is growing very fast.

HAIR CARE INDUSTRY IN INDIA- MARKET ANALYSIS The hair care market in India is

valued at $200 million. It has registered a growth of 3.8% over the previous year. The hair care market can be segmented into hair oils, shampoos,hair colorants & conditioners, and hair gels.

L'Oreal had the vision to realize all that would change and invested heavily in hairdressing education and training.

We skim the top 100 cities in India and have the largest salon base in the country, of which 20 per cent is exclusive to us, contributing to 40 per cent of our revenue.

4 P’S STANDS FOR

Product

Promotion

Price

Place

L’OREAL OFFERS WAST RANG OF PRODUCTS IN MARKET. THE MAJOR CATEGORIES ARE…

Hair care products

Skin care products

The hair care market can be segmented into hair oils, shampoos , hair colorants & conditioners, and hair gels. According to A C Nielsen (the world's leading marketing information company), hair colorants, feminine hygiene, and baby care have accelerated growth in personal care market. Hair colorants are substitutes for hair dye to counter graying hair. Hair colorants indicate strong growth trends with a year over year growth of 8 per cent. Gone are the days when hair conditioners and hair colorants were used occasionally to look beautiful. Today, they have become the way of life.

L’Oreal Ever Strong, free fortifying shampoo and

conditioner from L’Oreal.

L’Oreal Conditioner: L’Oreal Professional Series Expert Volume Expand Volumising Cream Conditioner for Fine Hair.

The skin care market can be segregated into toners, cleansers, sunscreens, anti-wrinkle creams, dark circle removing creams, astringents, facial creams, moisturizers, fairness creams, day and night creams, etc. Out of these, facial creams, moisturizers, fairness creams, day and night creams, etc. are the most popular products and account for approximately 60% of the skin care segment.

L'Oreal Youth Code Day/Night Cream Moisturizer, 1.6 oz

L'Oreal Youth Code Day/Night Cream Moisturizer, 1.6 oz

Reduces  signs of stress, fatigue and aging 10 years of gene research Non-greasy Dermatologist tested for gentleness Youth regenerating skincare Discover an innovation derived from gene science. The breakthrough genitive technology in this potent daily moisturizer boosts skin's natural powers of regeneration so it regains the qualities of young skin. Skin looks rested, smoother and youthfully luminous. Signs of stress, fatigue and aging are visibly diminished. This unique, luxurious formula leaves a light, velvety smooth finish. Breakthrough genitive technology helps increase skin's natural powers of regeneration, boosting skin's own

L’OREAL has been very active and upfront in adopting new promotional techniques to market its products. The company follows a very popular technique to advertise and market its products that is the Viral Marketing policy. Viral marketing is a term coined to define the productive ways a marketing message is made available. And corporate are using the medium to circulate brands and brand messages. The idea has caught on like a virus, as efficiently as Information Technology has entered households and businesses.

Firms are now structuring their businesses in a way that allows them to grow like a virus and lock out the existing brick and mortar competitors through innovative pricing and exploitation of competitors' distribution channels. The beauty of this marketing technique is that none of it requires any marketing. Customers, who have caught the virus, do the selling. Viral marketing describes any strategy that encourages individuals to pass on a marketing message to others, creating the potential for exponential growth in the message's exposure and influence. Like viruses, such strategies take advantage of rapid multiplication to explode the message to thousands, to millions.

Advertising and marketing specialists are aiming at young, urban Indian women, who are earning their own money and are potential customers for a host of products, including name-brand clothes, cosmetics and new cars.

The target segment for any product is that homogeneous group of people which is purported to be the most potential customer for the product.

The market follows the Pareto Principle, which says that 80 per cent of the sales come from 20 per cent of the people.

Thus, for any product, one of the major tasks of marketers is to identify the group of 20 per cent that gives 80 per cent revenue of that product’s sale to the company.

L'Oreal’s 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.

Considering the company has set up its manufacturing facilities in Pune and has also been sub-contracting its products, it has been easier for it to control its prices in the Indian market.

For inspirational products Garnier has adopted an international pricing strategy, which may not be the case for the rest of the products. However there is no hard and fast rule.

Besides, the company has also been customizing its products for the Indian market and there is expected to be a blend of both international as well as Indian

Market Analysis

Price: L’Oreal Paris Lip color varies from Rs 550-

Rs 800.

L'Oreal Youth Code Day/Night Cream Moisturizer, 1.6 oz Is $5.24 to $ 6.99

Positioning: Has positioned itself as high end brand in

consumer division and also as affordable luxury

To run a company in profit the place factor out of the 4p’s of marketing mix plays a very crucial role.

This includes decisions about where to sell the product or concerns about where the customers are, and how to get to them. It also includes the "channel of distribution" - meaning, all the different middlemen a company use to get the product out to the customer.

Garnier being an important brand of L’Oreal in both hair care and skin care is available all round the globe easily.

In India Garnier manufactures its products in Pune whereas it’s registered office is in Mumbai.

In past 100 years that L’OREAL has expanded, it has supplied to 130 countries with offices in 58 different countries.

Market Presence

Market share: Total Lip Color market in India is 400 crore

L’Oreal Paris Lip Color has approximately 20%-22% market share in India

World market share of L’Oreal is 5.3%

Market Presence

Product Life Cycle: L’Oreal Paris is at the second phase

of the growth stage:

Sales has increased at 40% growth rate

Spends heavily on advertising International players have entered in

market in past few years

The present study comes to the floor with the revelations having exciting and full of curiosity determinants in relation to the specified objectives to understand and analyze the 4P aspects of marketing for L’Oreal. Further the study helped in identifying the reasons which stops the customers to buy Garnier Products over other products and to understand customer Brand knowledge with regard to Garnier.