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Overview of L'Oreal

Market analysis

Study of 4PS

Market Presence

Conclusion

Overview Of LOreal

LOREAL Group - worlds largest


cosmetics and beauty company
Founded in 1909 by Eugene Schueller
LOreal has explored the fields of
cosmetics like hair care, hair color, skin
care, sun protection, and perfumes.
LOreal is also active in dermatological
and pharmaceutical field, which makes
LOreal the top nanotechnology patentholder in United States
LOreal has global market share of 17%

Brands Under LOreal

Garnier
Krastase
Kiehl's
Oral Professionnel
L cont.
Lancme
Maybelline
Pureology
Redken
The Body Shop
Vichy cosmetics

LOreal India

LOreal entered Indian market in


1990, in partnership with MU
group with the Ultra Doux range
of hair care & lip care products
In 1994, LOreal set up its whollyowned subsidiary for marketing
its consumer products in India
LOreal 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 PS STANDS FOR

Product

Promotion

Price

Place

LOREAL 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.

LOreal
Ever Strong,free fortifying shampoo and
conditioner fromLOreal.

LOreal Conditioner:
LOreal 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'OrealYouth Code Day/Night Cream


Moisturizer, 1.6 oz

L'OrealYouth 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

LOREAL 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 products sale to the
company.

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.

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:
LOreal Paris Lip color varies from Rs 550- Rs
800.
L'OrealYouth Code Day/Night Cream
Moisturizer, 1.6 oz Is
$5.24to $ 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


4ps 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 LOreal in both
hair care and skin care is available all round the globe
easily.
In India Garnier manufactures its products in Pune
whereas its registered office is in Mumbai.
In past 100 years that LOREAL 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
LOreal Paris Lip Color has
approximately 20%-22% market
share in India
World market share of LOreal is
5.3%

Market Presence
Product Life Cycle:
LOreal 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 LOreal. 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.