...Harvard Business School 9-598-056 October 23, 1997 L'Oréal of Paris: Bringing "Class to Mass" with Plénitude L’Oréal was born in Clichy, France in 1907, the offspring of technological innovation. Nearly 90 years later, the spirit behind answering the needs of a Parisian hairdresser in search of more subtle and lasting hair color for his clientele, was at work in the Health and Beauty Aids aisles of K-Marts, Wal-Marts, drugstores, and grocery stores throughout the United States as L’Oréal sought to bring “class to mass” in the skincare market. C PA RI S From his office overlooking Fifth Avenue in New York City, Joseph Campinell, President of L’Oréal’s U.S. Retail Division explained L’Oréal’s strategy for the mass market: “We sell product in the department store and specialty store channels. The research and development we do in support of those brands like Lancôme and Biotherm can be leveraged into mass market outlets as well. We call this ‘trickle down and fire up.’ We trickle the technology down to the mass markets where the high volumes are and that fires up our next generation of products by funding the research and development. In the retail division we do what the company always does: drive sales with product technology. But, since the drugstores, mass merchants and grocery stores we sell through are “selfservice” types of outlets, we have to support that technology with strong advertising, merchandising and promotions. We have been very successful...
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...Cristina-Adelina IEBA, 1-st year * SUMMARY * Origins of the company * Marketing Globalization * L’Oreal Marketing Strategy in India * INCREASING THE CUSTOMER BASE * SEGMENTING MARKETING * L’OREAL MARKETING STRATEGY IN CHINA, JAPAN * L’OREAL MARKETING STRATEGY IN NETHERLANDS * L’OREAL MARETING STRATEGY IN USA * WHY L’OREAL NEEDS TO UNDERSTAND CULTURAL DIFFERENCES? * CONCLUSION * Origins of the company L’Oreal, which was started in 1909 by a French chemist named Eugéne Schueller and now is the largest cosmetic and beauty company in the whole world. With 100 years of proficiency in cosmetics, the company has 23 global brands in 130 countries around the world and 649 patents in 2009. The company has made its presence in all major markets in the world. The company’s main focus is on hair insignia, skin care, protection from sun, perfumes, etc. This company is more vigorous in dermatology and pharmacy fields and is leading patent holder in nanotechnology in USA. The company accounts for 50% sales outside Europe and has acquired brands in those countries. Not only to women, but the company offers beauty products to even men. The brands of the company are grouped by the particular markets like mass, professional brands, luxury products and active cosmetics. The “Consumer products” are high technology ones at aggressive costs through mass-marketing trade channels. The “Professional products” is a pool of brands which meet the needs of salons...
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