CONTENTS

PREFACE

ACKNOWLEDGEMENT

CERTIFICATE

DECLARATION

Topic or Chapter Page No.

Chapter -1

1. Company profile of L’ORÉAL

2. Mission and Vision of L’ORÉAL

3. Board of Directors

4. History of L’ORÉAL

2-9

Chapter -2

Objectives of L’ORÉAL

10-10

Chapter -3

1. Products of L’ORÉAL

11-23

CHAPTER -4

Research and Methodology of L’ORÉAL

24-26

Chapter -5

a. Data Analysis and Interpretation

27-33

Chapter- 6

Marketing Strategies of L’ORÉAL

34-39

Chapter -7

Swot Analysis of L’ORÉAL

40-41

1. Limitations of the study

2. Findings

3. Suggestions

42-44

Conclusion 45-45

Bibliography 46

Questionnaire 47-47

CHAPTER-1

1

COMPANY PROFILE OF L’ORÉAL

L’Oréal is the world’s largest cosmetics company; present in over 130 countries with 66,600

employees world-wide. The company had a turnover of 19.5 billion Euros in 2010.

The company has been present in India for close to 20 years and in 2009 celebrated its global

centenary. Today, L’Oréal India is one of L’Oréal’s fastest growing subsidiaries and employs

over 1000 people across six sites including: four regional offices, a factory in Chakan, Pune and

its headquarters in Mumbai.

L’Oréal’s leadership is achieved through cutting-edge technology with a portfolio of well-known

brands that answer all beauty needs and are distributed in all channels. Each brand benefits from

considerable investments in research made by the L'Oréal Group. The Group's research efforts,

unique in the beauty industry, permit each brand to benefit from formulas specifically adapted to

the needs of men and women worldwide, within each market or distribution circuit that is

present.

In India, L'Oréal brands are present in the following four main categories:

CONSUMER PRODUCTS

L’Oréal Paris

Garnier

Maybelline New York

LUXURY PRODUCTS

Lancôme

Kiehl’s

2

Ralph Lauren

PROFESSIONAL PRODUCTS

L’Oréal Professional

Matrix

Kérastase

Kéraskin Esthetics

ACTIVE COSMETICS

Vichy

La Roche Posay

MANUFACTURING PLANT

In addition to the head office in Mumbai and regional offices in New Delhi, Bangalore, Chennai

& Kolkatta, L'Oréal India also operates a manufacturing plant and distribution centre located in

Chakan, Pune. Set up in 2004, this factory has been awarded the international certifications of

ISO 14001, ISO 9001-2000 AND OHSAS.

The Chakan plant specializes in the manufacture of hair-colour, hair care and skin care products,

producing 190 million units under the strictest of standards.

The L'Oréal Group is the world's largest cosmetics and beauty company. With its registered

office in Paris and head office in the Paris suburb of Clichy, Hauts-de-Seine,France, it has

developed activities in the field of cosmetics. Concentrating on hair colour,skin care, sun

protection, make-up, perfumes and hair care, the company is active in thedermatological, tissue

engineering and pharmaceutical fields and is the topnanotechnology patent-holder in the United

States.[

MISSION AND VISION

3

BEAUTY FOR ALL

For more than a century, L’Oréal has devoted itself solely to one business: beauty. It is a

business rich in meaning, as it enables all individuals to express their personalities, gain self-

confidence and open up to others.

Beauty is a language.

L’Oréal has set itself the mission of offering all women and men worldwide the best of cosmetics

innovation in terms of quality, efficacy and safety. It pursues this goal by meeting the infinite

diversity of beauty needs and desires all over the world.

Beauty is universal.

Since its creation by a researcher, the group has been pushing back the frontiers of knowledge.

Its unique Research arm enables it to continually explore new territories and invent the products

of the future, while drawing inspiration from beauty rituals the world over.

Beauty is a science.

Providing access to products that enhance well-being, mobilising its innovative strength to

preserve the beauty of the planet and supporting local communities. These are exacting

challenges, which are a source of inspiration and creativity for L’Oréal.

Beauty is a commitment.

By drawing on the diversity of its teams, and the richness and the complementarity of its brand

portfolio, L’Oréal has made the universalisation of beauty its project for the years to come.

L’Oréal, offering beauty for all.

GROUP PROFILE

4

A century of expertise in cosmetics

€20,3 billion consolidated sales in 2013

27 global brands*

130 countries

68 900 employees

613 patents filed in 2013

* These brands' annual sales are superior to 50 million euros

BOARD OF DIRECTORS

5

JEAN-PAUL AGON 

Chairman and CEO

Jean-Paul Agon's career is like the man himself: energetic, unwavering and constructive, always

leading to tangible results. With a background spanning a wide range of environments,

challenges and responsibilities, he has forged leadership skills underpinned by key expertise: in-

depth knowledge of how the company works, an international approach and a global vision of

major challenges ahead. 

AN APPETITE FOR ACTION

Born in France in 1956, Jean-Paul Agon joined L’Oréal in 1978after graduating from HEC

international business school. A man with an affinity for marketing, especially in cosmetics, and

an awareness of the importance of "psychology and culture", his professional expectations

matched the characteristics of L'Oréal, an international group promoting freedom to pursue new

ideas and giving its employees the chance to quickly prove themselves.

After a brief stint as product manager for the Consumer Products division in France, he was

appointed General Manager of L'Oréal Greece, where he spent four years turning around a tough

situation and laying the foundations of a solid business.

In 1985, he returned to France as General Manager of L'Oréal Paris, where he oversaw a number

6

of key launches and major successes, including Studio Line, Plénitude and Elsève.

In 1989, he rose to a towering challenge as International Managing Director for Biotherm,

completely remodelling the brand to chart a strategic tack that gave Biotherm renewed strength,

dynamism and modernity — endowing the company with truly international appeal. 

AN INTERNATIONAL CULTURE 

In 1994, Mr Agon left France to take up a new challenge as Managing Director of L'Oréal

Germany, where he played a key role in dealing with issues related to European markets, at the

time suffering a slowdown in growth. The absorption of German cosmetics company Jade, later

teamed up with Gemey, gave him his first taste of major acquisitions. 

In 1997, L'Oréal Chairman and CEO Lindsay Owen-Jones entrusted him with the task of setting

up and heading the L'Oréal Asia Zone in the midst of a full-blown economic crisis. No mean

feat. Lending fresh impetus to these still-emerging markets meant creating subsidiaries in a

number of countries, setting out relevant strategies, stepping up investment and recruiting a new

generation of local talent. Mr Agon played a predominant part in developing these huge drivers

for future growth.

In 2001, a new chapter in his career began, when he was named President of L'Oréal USA,

leading a drive to win market share across every category in a highly competitive environment. It

was during this time that Garnier launched its hugely successful Fructis range. 

In 2006 Jean-Paul Agon has been Chief Executive Officer of L’Oréal since 2006. A man of

action, he instils in the group the energy, rigour and vision needed to successfully tackle the

challenges of the third millennium; a man of conviction, he channels that same passion into

promoting L'Oréal's ethical values, making the company a model of corporate citizenship.

On March 17th 2011, Jean-Paul Agon has been appointed as Chairman and CEO.

HISTORY

7

In 1909, Eugène Schueller, a young French chemist, developed a hair dye formula

called Auréale. Schueller formulated and manufactured his own products, which he then sold

to Parisian hairdressers.

On 31 July 1919, Schueller registered his company, the Société Française de Teintures

Inoffensives pour Cheveux (Safe Hair Dye Company of France). The guiding principles of the

company, which eventually became L’Oréal, were research and innovation in the field of beauty.

In 1920, the company employed three chemists. By 1950, the teams were 100 strong; that

number reached 1,000 by 1984 and is nearly 2,000 today.

L’Oréal got its start in the hair-color business, but the company soon branched out into other

cleansing and beauty products. L’Oréal currently markets over 500 brands and many thousands

of individual products in all sectors of the beauty business: hair colour, 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.

L’Oréal has six worldwide research and development centres: two in

France: Aulnay and Chevilly; one in the U.S.: Clark, New Jersey; one

in Japan: Kawasaki, Kanagawa Prefecture; in 2005 one was established in Shanghai, China, and

one in India. A future facility in the US will be in Berkeley Heights, New Jersey.

From 1988 to 1989, L’Oréal controlled the film company Paravision, whose properties included

the Filmation and De Laurentiis libraries.StudioCanal acquired the Paravision properties in 1994.

L’Oréal purchased Synthélabo in 1973 to pursue its ambitions in the pharmaceutical field.

Synthélabo merged with Sanofi in 1999 to become Sanofi-Synthélabo. Sanofi-Synthélabo

merged with Aventis in 2004 to become Sanofi-Aventis.

On 17 March 2006, L'Oréal purchased cosmetics company The Body Shop for £562 million.

L'Oréal's 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

8

Titorenko. The shift to "we" was made to create stronger consumer involvement in L'Oréal

philosophy and lifestyle and provide more consumer satisfaction with L'Oréal products. L'Oréal

also owns a Hair and Body products line for kids called L'Oréal Kids, the slogan for which is

"Because we're worth it too".

In 1987, L'Oréal and 3 Suisses founded Le Club des Créateurs de Beauté specialising in mail

order sales of cosmetic products. In March 2008, L'Oréal acquired 3 Suisse's stake, taking sole

control of the company.

In November 2012, L'Oréal inaugurated the largest factory in the Jababeka Industrial Park,

Cikarang, Indonesia, with a total investment of US$100 million. 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.

CHAPTER-2

9

OBJECTIVE

To know about market share of Loreal.

To know about the marketing strategies of Loreal.

To know about the brand value of Loreal.

To know about the price & product of Loreal.

To know about the promotional policies of Loreal.

CHAPTER-3

10

PRODUCT PROFILE

LOREAL PRODUCTS IS DIVIDED INTO FOUR PARTS:

1. SKIN CARE

2. MAKE UP

3. HAIR COLOUR

4. HAIR CARE

5. FOR MENS

L'Oreal Professionnel Serie Expert Absolut Repair Cellular Repairing Shampoo for Very

Damaged Hair (250 ml)

Rs. 500

11

L'Oreal Professionnel X-tenso Care Straight Shampoo (230 ml)

Rs. 525

L'Oreal Professionnel X-tenso Care Straight Masque (200 ml)

Rs. 600

L'Oreal Professionnel Serie Expert Liss Ultime Shampoo (250 ml)

Rs. 500

12

L'Oreal Professionnel Serie Expert Absolut Repair Cellular Repairing Masque for Very

Damaged Hair (200 ml)

Rs. 600

L'Oreal Professionnel Serie Expert Liss Ultime Polymer AR Smoothing Masque for

Unmanageable Hair (200 ml)

Rs. 600

13

L'Oreal Professionnel Serie Expert Force Vector Shampoo (250 ml)

Rs. 500

L'Oreal Professionnel Serie Expert Liss Ultime Shine Perfecting Serum( 125 ml)

Rs. 580

14

L'oreal Professionnel Expert Serie - Instant Clear Purifying Anti-Dandruff Shampoo (250 ml)

Rs. 500

L'Oreal Professionnel Serie Expert Absolut Repairing Treatment Serum (50 ml)

Rs. 580

L'oreal Professionnel Mythic Oil Shampoo (250ml)

Rs. 750

15

L'Oreal Professionnel Serie Expert Absolut Repair Conditioner (150 ml)

Rs. 475

L'Oreal Professionnel X-tenso Care Straight Serum (50 ml)

Rs. 551

16

L'Oreal Professionnel Mythic Oil Masque (200 ml)

Rs. 800

L'Oreal Professionnel Serie Expert Liss Ultime Combo

Rs. 1680

L'Oreal Professionnel Serie Expert Force Vector Masque (200 gm)

Rs. 600

17

L'Oreal Professionnel Serie Expert Pure Resource Shampoo( 250 ml)

Rs. 500

L'Oreal Professionnel Mythic Oil (125ml)

Rs. 950

18

L'Oreal Professionnel Serie Expert Vitamino Color Incell Hydro-Resist Color Protecting

Shampoo (250 ml)

Rs. 500

L'Oreal Professionnel Tecni Art Hair Mix Spiral Splendour Nutri Control Cream for Dry Curly

Hair (150ml)

Rs. 550

L'Oreal Professionnel X-tenso Care Straight Shampoo (230 ml) (Pack of 2)

Rs. 1050 998

19

L'Oreal Professionnel Tecni Art Hair Mix Sublime Shine Anti Frizz Serum for Dry Hair (125

ml)

Rs. 600

L'Oreal Professionnel Tecni Art Hair Mix Supreme Smooth Nutri Smoothing Cream for Dry

Hair (200 ml)

Rs. 600

20

L'Oreal Professionnel Homme Force 3 Sculpte Sculpting Fibre Paste (150 ml)

Rs. 575

L'Oreal Professionnel Serie Expert Sensi Balance Shampoo (250 ml)

Rs. 500

21

L'Oreal Professionnel Tecni Art Full Volume Mousse (250 ml)

Rs. 580

L'Oreal Professionnel Homme Cool Clear Anti Dandruff Shampoo (250 ml)

Rs. 550

L'Oreal Professionnel Liss Control Plus Tecni Art Serum (50 ml)

Rs. 525

22

L'Oreal Professionnel Serie Expert Combo

Rs. 1680

L'Oreal Professionnel Serie Expert Liss Ultime Thermo Smoothing Oil (50 ml)

Rs. 580

23

CHAPTER-4

RESEARCH METHODOLOGY

Meaning of research

Research in common parlance refers to a search for knowledge. Once can also define search as a

scientific and systematic search for pertinent information on a specific topic. Infect research is an

art of scientific investigation. The advanced learner’s dictionary of current English lay down the

meaning of research as “A careful investigation or inquiry specially through search for new facts

in any branch of knowledge.”

This inquisitiveness is the mother of all knowledge and the method which man employs for

obtaining the knowledge of whatever the unknown can be termed and research.

What is research methodology?

It is the science that tells the method of doing research.it mainly consist of following steps;

Developing research design.

Determining the data collection.

Developing sampling plan.

Conducting field work.

Research in comman parlance refers to a search for knowledge .One can also define research as

a scientific and systematic search for pertinent information on a specific topic.The word research

has been derived from French word research means to search.

Definition of research methodology:

Research may be defined as “a careful investigation or enquiry specially through

search for new facts in any branch of knowledge” in a technical sense research comprise

defining& redefining problems, formulated making deduction & researching conclusion & at

least carefully testing the conclusion to determine weather they fit the formulating hypothesis.

24

RESEARCH DESIGN:

Research design is the conceptual structure within which research is conducted. It

constitutes the blueprint for collection, measurement and analysis of data. The design used for

carrying out this research is descriptive.

Research design used in the survey:

Considering the objectives of the study and also the importance of the decision it

was decided to undertake an exploratory survey.

Data collection:

1. primary data-primary data are those which are fresh and collect for the first time and

thus happen to be original character.

2. Secondary data-It is the data that is already been collected by someone else.

In this survey I used both primary and secondary data. All information collected through

questionnaire.

Data sources:

The sources of collection of primary data are:

Questionnaire

The sources of collection of secondary data are:

Books

Websites

Magazine

Brochure

Analysis and interpretation:

Data collection through questionnaire and personnel interview resulted in

availability of the desired information but these were useless until there were analyzed.

Various steps required for this purpose were editing, coding and tabulating. Tabulating

refers to bringing together similar data and compiling them in an accurate and meaningful

25

manner. The data collected by questionnaire was analyzed, interpreted with the help of

table, bar chart and pie chart.

Sampling plan

It is very difficult to collect information from every members of population as time and cost are

the major limitation that the researcher faces a sample 30 was taken the sample size of 30

individual where selected on the basis of convenient sampling techniques. The individuals were

selected in the random manner form sample and data were collected from research study.

Need for sampling

Sampling can save time and money. a sample study usually less expensive than a sensus

study and produces result at a relatively faster speed.

Sampling remains the only way when population contain infinitely may members.

Sampling remains the only choice when a test involves the destruction of the items under

study.

26

CHAPTER-5

DATA ANALAYSIS AND INTERPRETATION

Q1. Are you aware about L’ORÉAL?

YES NO

85% 15%

85%

15%

YESNO

According to survey we find that 85% of customers are aware about L’ORÉAL while 15%

are not.

27

Q2. Have you owned any product of L’ORÉAL?

YES NO

40% 60%

40%

60%

YESNO

According to survey we find that 40% of customers are owned a product of L’ORÉAL

while 60% are not.

28

Q3. Which product of L’ORÉAL do you basically use?

SKIN CARE 28%

MAKE UP 35%

HAIR COLOUR 5%

HAIR CARE 15%

FOR MENS 17%

28%

35%5%

15%

17%

SKIN CARE MAKE UPHAIR COLOURHAIR CAREFOR MENS

According to survey we find that 28% of customers are used SKIN CARE, 35% customers

use MAKE UP, 5% customers use HAIR COLOUR, 15% customers use HAIR CARE

while 17% customers used FOR MEN.

29

Q4. Are you satisfied with the product and price of L’ORÉAL?

YES NO

88% 12%

88%

12%

YESNO

According to survey we find that 88% of customers are satisfied with product and price of

L’ORÉAL while 12% are not.

30

Q5. Rate the product about your satisfaction?

GOOD 52%

VERY GOOD 20%

EXCELLENT 18%

POOR 10%

GOOD VERY GOOD EXCELLENT POOR0%

10%

20%

30%

40%

50%

60%

52%

20%18%

10%

Series1

According to survey we find that 52% of customers are likely to says that its Good, 20%

customers says its Very Good, 18% customers says its excellent while 10% says its Poor.

31

Q6. By which source you come to know about L’ORÉAL?

T.V 58%

NEWSPAPER 15%

HOARDINGS 10%

MOUTH OF TONGUE 17%

58%

15%

10%

17%

T.VNEWSPAPERHOARDINGSMOUTH OF TONGUE

According to survey we find that 58% of customers are come to know by T.V, 20%

customers says by Newspaper, 10% customers says by Hoardings while 17% says by

Mouth of tongue.

32

Q7. Did you aware about Promotional policies of L’ORÉAL?

YES NO

65% 35%

65%

35%

YESNO

According to survey we find that 65% of customers are aware about promotional policies while

35% are not.

33

CHAPTER-6

MARKETING STRATEGIES OF LOREAL

L’Oreal India, part of the 22.46-billion-euro L’Oreal Group, is drawing up a three-pronged

strategy to sustain its growth momentum in India.

To start with, the company is planning to develop new technologies and products at its new

research and innovation centre in India. In January this year, L’Oréal inaugurated this centre in

Mumbai. To woo the Indian middle class, L’Oreal India is introducing its products in smaller

packs at affordable price points. As part of its retail strategy, the company is launching a slew of

initiatives to gain high visibility for its products in Indian markets.

On the company’s strategy, Satyaki Ghosh, director (consumer products division), L’Oréal India,

said: “Our R&I centre has a dual mission: to adapt the technologies developed by the worldwide

centres to meet the expectations of Indian consumers. And, we are looking at green field projects

— from ideation to implementation of projects and designing new technologies and products at

our centre.” The R&I centre in India is the L’Oreal Group’s sixth R&I hub globally. The L’Oreal

Group plans to invest a total of 140 million euro (R970 crore) in India from 2011 to 2016.

To reach out to a wider audience, L’Oreal India is now sharpening its focus on mass market

strategy in competitive markets. ‘’We are seeing the emergence of a large middle class. We are

creating smaller packs to go deeper in India. At affordable prices, consumers can now get high-

end products,” said Ghosh.

The company has introduced its brand ‘Garnier Colour Naturals’ in small economy packs and

single use packs across the country.

“We have launched Garnier Colour Naturals in smaller packs at R59. The original pack costs

R159,” said Ghosh. In line with this strategy, the company has also launched R25 tubes of face

wash and shampoos in sachets priced at R1.50.

The company is currently hosting visibility-related activities with modern trade as well as

general stores.

34

“We are running a programme called ‘Dominance’. When we go to a new town, we take some

retail space in markets and put up pictures of brands and its celebrity endorsers.

Education

L'Oreal Paris is a trusted brand. The company boasts high brand loyalty and terrific repeat

business. Once a female consumer finds a makeup or beauty product that she likes, she tends to

stick with it. This opens L'Oreal Paris up to a whole host of content marketing opportunities

around education. How-to videos, DIY, and providing facts to consumers are essential ways the

brand promotes itself to its customers, all while providing useful information and attracting new

fans.

Empowerment

L'Oreal is all about empowering its customers. The company promotes itself as more than just a

cosmetic and beauty brand but as a source of strength and confidence for its consumers. L'Oreal

is vigilant about making sure its content empowers customers and leaves them with a positive

outlook toward the brand.

Aspiration

By sponsoring events such as the Golden Globes and Project Runway, L'Oreal has positioned the

brand as trademark for aspiration. The glamor of an awards event or the high prominence of a

fashion show are perfect places for L'Oreal to insert and establish itself as the product to

purchase if you want to improve yourself and reach higher goals for health and beauty.

Kristen Coming, VP of integrated marketing communications at L'Oreal Paris, speaks to iMedia

about how the company tackles the content marketing world and explains why this approach has

had such a resurgence recently.

35

Company’s Strategy To Tap The Indian Market

The majority of Indians still shop at small neighborhood outlets rather than at supermarkets and

this would require the company to pursue an innovative retail strategy. It has experimented with

selling products in cheap, individual sachets for a few rupees, and believes it currently has

presence across 750,000 small shops nationwide. ((L’Oréal unveils new Research & Innovation

center in India, L’Oréal Finance, January 2013))

It has also used its Garnier product range to develop a special range of products that use Indian

ingredients and is testing makeup products to expand beyond hair and skincare categories. A

local research center will help the company further cater to the local tastes while tapping the

cheap human capital which could be used to develop products for other markets. Besides

localized products, the company is also experimenting with a dual pricing strategy which will

help it differential its prestige brands.

Backed by these initiatives the company India operations grew at +20% last year when India’s

economy growth slowed down from 10% to 7%. ((L’Oréal unveils new Research & Innovation

center in India, L’Oréal Finance, January 2013))

We believe that the initiatives by the company cater to the price conscious nature of the Indian

population, and they could drive long term growth given the low proliferation of high-end

cosmetics in the market, the market size and increasing disposable income of the middle class.

Why Is The Focus On India?

The company expects India to be among its biggest markets by 2020. This would require

substantial revenue growth from India which currently contributes about 1% of its total

worldwide revenues. The company plans to quadruple its turnover in India by 2020 and the

recent investments are to support this target.

L’Oréal estimates the annual spending per head on beauty products in India to grow from US$4

to US$13 by 2025 and a product portfolio customized to the Indian needs will help the company

capture a majority share of the growing middle class.  A growth in the company’s market share in

36

India would be instrumental in the company attaining its target of 1 billion new

customers. ((L’oreal’s CEO Discusses Q4 2011 Results – Earnings Call Transcript, Seeking

Alpha, February 2012))

Two decades of trials have placed L'Oreal high in the Indian beauty market. But with still low

penetration levels and cut-throat competition, where are the company's next opportunities

In business, as in life, it’s important to be in the right place at the right time – and that’s clearly

been the aim of French cosmetics giant L’Oreal in India.

For nearly two decades, the owner of brands like Maybelline, L’Oreal Paris, Lancome and

Garnier tried and tested a variety of innovation and marketing strategies that appear to have paid

off. Today, L’Oreal reportedly has 41.5 per cent share of the market in India for hair conditioner,

around 20 per cent for hair colouring products, and 6.5 per cent and 4.6 per cent for the skincare

and shampoo markets respectively. Meanwhile, it is the country’s leading player in the salon

products sector.

Innovating for a local market, both with product and pricing, as well as an aggressive marketing

strategy, have proved particularly effective, says Dinesh Dayal (MBA ‘84J), L’Oreal India’s

chief operating officer. “It’s really a mixture of intuition, hard market research and the power of

our global R&D which yielded the right kind of innovation.”

Going local

For its consumer products brands Garnier and L’Oreal Paris, adapting to local culture and

preferences has been critical. “Increasingly our blockbusters have been India innovation-led

products,” Dayal told INSEAD Knowledge in an interview. For instance, Garnier redesigned its

Excellence hair-colouring product that involved more manual work to mix the dye. But at a

quarter of the international retailing price, it meant new consumers were more willing to buy the

product. Other successes include an oil-based shampoo, Garnier Fructis Shampoo + Oil, to match

the frequent use of hair oil, as well as products for previously-dormant segments such as anti-

wrinkle creams and men’s skincare. Apart from ‘Indo-vation’, as Dayal calls it, creating brand

awareness using movie idols in television commercials proved crucial to gaining a strong

37

foothold. “Television [in India] is here to stay,” observes Dayal. “It’s flourishing, and advertising

on TV with a very good ambassador will continue. New media will add on as niche as the

country evolves.”

In 1997 when it launched its professional products division, L’Oreal targeted a largely

unstructured hairdressing industry to market and sell its salon brands -- L’Oreal Professional,

Kerastase and, more recently, Matrix. The company sought to educate salon owners and stylists,

and opened five regional training centres. It launched the International Hairdressing Academy in

2006 in Mumbai that offers basic and advanced styling instruction, and regularly invites

international stylists to conduct workshops and seminars.

Growing the customer base

In the emerging markets, product penetration is low, providing generous room for growth.

“There’s a huge growth and a desire to consume,” says Dayal. “Even within segments that have a

lot of usage like shampoos, there is a desire to upgrade to performing products.” What’s also

interesting, he adds, is that it’s not just within one section of the population.

L’Oreal launched its luxury products division three years ago, with Dayal at the helm of the

fledgling operation. Boasting brands like Lancome, Giorgio Armani and Yves Saint Laurent, the

group has seen strong growth in the luxury sector of between 25 and 30 per cent, he explains.

“There’s no one India,” said Dayal. “It’s a heterogeneous market and each one has its own

preferences. On all fronts, the growth is very high.” Consumer goods are also showing healthy

growth rates of about 15 percent, he adds.

Segmenting markets

The underlying picture is much more complex, however, according to Paddy Padmanabhan,

INSEAD professor of marketing. Luxury products may be selling in India’s cosmopolitan cities

like Delhi, Mumbai and Bangalore, but their small customer base also makes them highly

competitive markets, whether for cosmetics, fragrances or accessories. The greater opportunities,

Padmanabhan elaborates, are in the second-tier cities like Ahmedabad and Aurangabad, for

38

example, which are growing very fast but lack access to luxury products and services.

Additionally, there is a very large opportunity in the middle market where consumers want to

consume but not at very high price points, a challenge for international players like L’Oreal that

face “brutal competition” from successful local brands like Marico and Dabur India and

consumer goods giant Hindustan Unilever.

“Innovation is not just about new products,” says Padmanabhan. “It’s all across the spectrum

with your processes, your back operations, your business model and organisation. Dayal’s

observation on this is right on the money. In fact, this is an imperative in the extremely

competitive Indian marketplace.”

L’Oreal set up its wholly-owned Indian subsidiary operation in 1994 with the launch of its

Garnier Ultra Doux shampoo products. It was around the time when television viewing in India

exploded and Indian women came to the forefront in international beauty pageants -- two events

that stirred consumer interest in cosmetics, explains Dayal. But tangible changes were visible

only five to seven years ago when women began joining the workforce in droves. Disposable

income and exposure to a globalised culture became key turning points.

Dayal acknowledges the challenges that lie ahead with innovating new products, supply chain

automation, knowledge of smaller markets, organisational challenges and maintaining the

company’s global culture.

“[We] are a $200 million company and the fastest-growing subsidiary in the L’Oreal group,”

says Dayal. “We sometimes feel we are at the beginning so that puts us in a very confident

mood.”

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CHAPTER-7

SWOT ANALYSIS

L'Oréal Paris

Parent Company L'Oréal

Category Personal Care brands- Cosmetics

Sector FMCG

Tagline/ Slogan Because you’re worth it

USP

Best caters to the demands of women of different cultures through

constant research and innovation

SWOT Analysis

Strength 1. Continuing research and innovation in the interest of beauty

which assures that the L’Oreal Cosmetics offers the best to their

consumers.

2. Leader in the growing cosmetics industry despite the

competition in the market.

3. High-end advertising which adapts to the culture of target

audience

4. Has over 60,000 employees globally

5. Apart from hair colour, skin care, sun protection, make-up,

perfumes and hair care, the company is active in the

dermatological and pharmaceutical fields and is the top

nanotechnology patent-holder in the United States

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6. L’Oréal has operations in over 130 countries and over 4o

manufacturing plants

Weakness

1. Decentralized organizational structure. Due to the many

subdivisions of the Company, there is also the difficulty in the

control of L’Oreal

2. Stiff competition from other leading cosmetic established

brands

Opportunity

1. Growing market that ranges from the affluent, the aging and

also the masses of the developed countries

2. Greater market share because of the numerous patents

registered by the Company.

Threats

1. Growing competition within the field of cosmetic brands

2. Economic downturn that is quite evident in other countries

3. L’Oreal Group may be producing the best of its line, people

may find that their products are not of their basic needs and would

skip buying L’Oreal products.

Competition (main)

Competitors

1.Revlon

2.Chambor

3. Lakme

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FINDINGS

CONSUMER RESEARCH:

Consumer research deals with consumer and their problems

and solution to the problems. In this I came to know about the consumers need and

expectation levels regarding products and ascertainable levels of consumer satisfaction.

PRODUCT RESEARCH:

Under product research I came to know about the

modification which consumers wants as Rates of LOREAL products are very high so the

middle class cant afford it.

ADVERTISING RESEARCH:

Under this I have concluded that whether the advertisement

appeals the consumers or not. This also includes evaluating and selecting the proper

media-mix and measuring advertising effectiveness.

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LIMITATIONS OF STUDY

The time given was not sufficient as only one person had to conduct the survey.

The exact thinking of the respondents cannot be found out could be one of the

limitations.

Customers cant not correlated while filling up Questionnaire.

Findings are made with in the limited Information & views of the respondents. So a

chance of bias information is not totally eliminated.

Area of survey is small.

Customers were not cooperative.

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SUGGESTIONS

It is suggested that LOREAL now a days is totally depending up on Fashionable or

Teenagers needs so I think that they must innovative & creative to launched new

product along with this to stay or compete in the market for the longer period.

Should give their product at affordable price

More and more promotion techniques should be there to promote it

Should be available in every place.

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CONCLUSION

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 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 Loreal. As the study has been conducted, inthe context of Indian

customers, the investigation perspectives have been thrown, conditioning the specified motives

of Indian people, putting aside the motives outside India. The research conducted was also

helpful in identifying the frequency of purchase and usage of the Loreal products.

It is concluded that working nature of LOREAL is of such kind that they. Always give

first priority to their customers, which make them distinct from the rest Therefore that is why the

customers are increasing day by day. The proof of success is that LOREAL is flourishing quickly

in the world. LOREAL promises that it is the sole company that gives good experience to the

customers.

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BIBLIOGRAPHY

Books:

PHILIP KOTLER, MARKETING MANAGEMENT, EDITION 2005.

V.S RAMASWAMY AND S. NAMAKUMARI MARKETING MANAGEMENT,

SECOND EDITION.

Magazines

Business India

India Today

Business Today

Newspapers

The Times of India

The Hindustan Times

The Economic Times

SWAMI VIVEKANANDA UNIVERSITY SAGAR M.P

QUESTIONNAIRE

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Name:- Age:-

Occupation:- Contact No:-

Q1. Are you aware about L’Oreal?

a. Yes b. No

Q2. Have you owned any product of L’Oreal?

a. Yes b. No

Q3. Which type of product do you owned?

a. Skin Care b. Make up c. Hair color d. Hair care e. For Mens

Q4. Are you satisfied with the product and price of L’Oreal?

a. Yes b. No

Q5. Rate the product about your satisfaction?

a. Good b. Very Good c. Excellent d. Poor

Q6. By which source you come to know about L’Oreal?

a. T.V b. Newspaper c. Hoardings d. Mouth of Tongue

Q7. Are you aware about promotional policies of L’Oreal?

a. Yes b. No

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