Premium Essay

Giants in Cosmetics


Submitted By RingowStarr
Words 1173
Pages 5
To L'Oréal, Brazil's Women Need New Style of Shopping
(See Correction & Amplification below .)
RIO DE JANEIRO—Brazilian women are among the biggest spenders on beauty products anywhere. But the world's largest cosmetics company, L'Oréal SA, has faltered in Brazil.
The reason: Brazilian women from the banks of the Amazon to Sao Paulo's slums and the affluent beach communities of Rio de Janeiro have traditionally bought their skin creams and mascaras from door-to-door sales representatives, not the shops where L'Oréal sells its brands.

Cosmetics giant L'Oreal is trying to change the way Brazilian women buy makeup. WSJ's Christina Passariello reports from Rio De Janeiro.
The French company won't use the direct-sales approach, but the company has adopted a strategy that takes a page from it: introducing personal beauty advisers at department stores. L'Oréal also plans to offer a new line of lightening creams at pharmacies.
"Our big bet here is to create a makeup business in retail from scratch," said Jean-Paul Agon, L'Oréal chief executive, as he picked up a tube of Maybelline mascara, one of his company's many brands, in a Lojas Americanas department store in a middle-class Rio neighborhood. "The more the market develops, the less relevant direct sales will be."
For L'Oréal, winning over Brazilian women is crucial if it is to meet its goal of adding one billion consumers—a doubling of its current clientele—over the next decade. L'Oréal currently makes about a third of its €17.5 billion ($23.36 billion) in yearly sales from emerging markets, and it wants to increase that to half by 2020.
But despite its well-known brands—from Maybelline and Garnier to Lancôme–L'Oréal's growth in Brazil has been unsteady at best. Its Brazil sales rose 15% to €521 million in 2009, but they had only inched up the previous year. In contrast, sales

Similar Documents

Premium Essay

International Marketing

...Summary of Cosmetics Giants Segment the global Cosmetics Market The world’s best know cosmetics companies are setting their sights on a lucrative new segment: the emerging middle classes in countries such as Brazil, Russia, India, and China. Marketers LÓréal, Procter & William Lauder, president and CEO of Estée Louder, calls China a ‘$100 billion opportunity.’ Nothing that there is no ‘one-size-fits-all’ idea of beauty cosmetics marketer pride themselves on sensitivity to local cultural preference . As Jean-Paul Agon, Chief executive Lóreal explain that they have different consumers. Each consumer is free to have her own aspirations. They intention just to respond as well as possible to each consumer aspiration. Market research is critical to understanding women’s preferences in different parts of the world. In China, Lóreal and its competitors have an opportunity to educate women about cosmetics, which were banned prior to 1982. Each year, Lóreal observes and firms 6000 Chinese women applying and removing makeup. Lóreal and Procter &Gamble offer a wide range of products in China ,including both mass-market and premium brands. Estée Lauder’s focus on expensive prestige brands such as Estée Lauder, Clinique and MAC that are sold through upmarket department stores. One research caution that Estée Lauder positioning too narrow for China. Estée Lauder disagree this statement. She mention that Chinese consumer more price sensitive, but same time are willing to invest in product...

Words: 497 - Pages: 2

Premium Essay

Creating a Business

...Urban Outfitters Continuing Case Study: Creating a Business Introduction to Business Prof. Maria Gambuzza Urban Outfitters Continuing Case Study: Creating a Business 1. Identify at least three challenges when setting up a business. Explain why they are challenges. One of the challenges when setting up a business is about finance. First and foremost, business needs to determine the startup cost. To be able to do that, they must identify all the expenses their business will encounter during their startup phase. The expenses will be either one-time cost, such as business license fee or going costs, such as leasing cost, supplies, etc… After that phase, business needs to find their capital sources. If they don’t have their own savings or can’t borrow money from friends or family, their option will be getting loan from banks. In the early state of the business, their inexperience “in financial matters often prompts banks to deny loan requests”. (1) Business owner needs to well prepare and organize to prove to their lender that they are the bank’s good investment. The other challenge is experience and skills. Many people are first time business owners who are inexperience and lack of skills. Some start a business because they see people doing successfully and think they can do the same. However, running a business smoothly and successfully requires owners to have skills and experience in all perspective of the business, including accounting, marketing, etc. The third...

Words: 1125 - Pages: 5

Free Essay

Cvs Case Study

...of the ways this can be accomplished is by entering into a more profitable market. Drug store giant CVS found themselves in this situation and took on the task of competing in the upscale beauty market. The drugstore chain was going to challenge the recession. The launching of a new retail concept in the midst of the then gloomy economic environment was certainly risky. Amid other high end beauty marketers struggling during this economic downturn, CVS was poised to try and lure away some of their clientele. Named Beauty 360, the first stores were launched in 2008. This study will analyze the factors and decisions CVS made in deciding to enter this market, and, if these choices proved practical. Introduction CVS Pharmacy is the second largest pharmacy chain in the United States with over 7,000 stores in 41 states and $86 billion in revenue (Prior, 2008). As the retail pharmacy division of CVS Caremark, it sells prescription drugs and a wide assortment of general merchandise, including over-the-counter drugs, beauty products and cosmetics, film and photo finishing services, seasonal merchandise, greeting cards and convenience foods through their CVS Pharmacy and Longs Drugs retail stores and online through For more than 10 years, CVS tried to entice high end beauty makers to offer their products in their stores and was shirked. These upper tier cosmetic giants balked at the idea of offering their products in a drugstore setting. Wanting to gain entrance...

Words: 2767 - Pages: 12

Free Essay

Hazel Bishop

... Hazel, a brilliant young lady, graduated from the Bergen School for Girls in New Jersey. In 1925, she was accepted into Barnard College in New York. She completed a pre-med program and graduated four years later with a bachelor's degree. Hazel persisted her medical studies at Columbia University to follow her career. In October, a stock market crash and economic depressions occurred, and this intruped her plans for medical school. She searched for a job, and she recieved the opportunity to work at the New York State Psychiatric Hospital and Institute in New York to become a biochemical technician, where she conducted routine analyses of medical samples. Hazel dedicated her time to skin care research, and she loved dabbling in cosmetics. In her kitchen, she created her own laboratory and invented products, such as an acne cream. In 1935, Hazel moved up to become a research assistant to Dr. A. Benson Cannon, a highly recommended dermatologist at the Columbia University Medical Center. Hazel started working for the Standard Oil Development Company in 1942, as a organic chemist, where she designed fuels for airplans and helped create a new form of gasoline for bombers during World War II. Three years past, and Hazel switched to the Socony Vaccum Oil Company, but her work remained the same....

Words: 804 - Pages: 4

Premium Essay

The Influence Of Animal Testing On Cosmetics

...How would you feel if you were being injured or even killed to test different cosmetics? That’s what is happening to these poor animals involved in animal testing. Animal testing is a horrible and rather controversial issue. These animals are being used to test products such your own foundation.Throughout time we have revolutionized the way we test medicine. Some weren’t tested at all and others on animals. Now we when we get these products we get angry if the irritate our skin, but what we don’t realize is what is behind the scenes. Behind the cosmetics are facilities where animals are burned, poisoned, shaved, and killed just to make sure these products are okay for human skin. Animal testing is inhumane, harmful to the animals’ health, and...

Words: 955 - Pages: 4

Premium Essay

L'Oreal Expansion in China Case Study Report

...Introduction This report is based on the ‘L’Oreal: Expansion in China’ case study. L’Oreal is a successful French cosmetic company that involved into many different international markets. This report will discuss how L’Oreal gets into the Chinese cosmetic Market and the strategic to develop their brand in the Chinese market. L’Oreal acquires two famous Chinese cosmetic brands which are Yue-Sai and Mininurse. It is in order to entrance the market quickly and sales the most suitable products. The aim of this report is to define the challenge L’Oreal has been faced. Then it describes how L’Oreal managing their strategic in Chinese market. In addition, it gives an accommodation which could help L’Oreal overcoming these challenges. Background L’Oreal’s background The French company L’Oreal is a giant in cosmetics market that founded in 1907 by Eugene Schueller. The earliest success for L’Oreal is because it got the first hair color formula and then expanded into the field of shampoo and soaps. From the very beginning, L’Oreal decided to export its product to other countries such as Holland, Italy and so on. It entered the US market at 1953. Schueller was died in 1957 and Francois Dalle replaces his post. Although the boss has been change but L’Oreal expanded into overseas markets continuity. In 2004, L’Oreal had 52,000 employees over the world and portfolio of 17 international brands. As shown in the L’Oreal group annual report, the largest market for L’Oreal is still Western...

Words: 1444 - Pages: 6

Premium Essay


.................................11   COMPETITION  BRANDS.......................................................12   MARKETING  STRATEGIES  BY  OTHER  BRANDS .....................13   CURRENT  MARKET  STRATEGY.............................................23   REFERENCES:.......................................................................29             LAKME  Overview     India,   with   a   population   of   nearly   a   billion   people,   is   a   country   of   contrasts.   India's   urban   population   is   the   main   engine   that   fuels   the   demand   for   various   cosmetic   products.   Although   Indians   are   strongly   attached   and   committed   to   their   traditions,  and  culture,  the  advent  of  television  and  the  awareness  of  the  western   world  is  changing  the  tastes  and  customs  of  India.  The  ‘morphing’  of  India  is  subtle   and   the   changes   are   not   visible   for   the   first...

Words: 5951 - Pages: 24

Premium Essay

Marketing Report in Consumer Behaviour - L'Oreal

...INTRODUCTION 4 LITERATURE REVIEW 4 L'ORÉAL MARKETING PLAN AND CONSUMER BEHAVIOUR 6 Cultural factors: 6 Social factors 7 Psychological factors 8 CONCLUSION 10 APPDENDICES 10 REFERENCES 11 REPORT ON THE EFFECTS OF CONSUMER BEHAVIOUR ON L'ORÉAL MARKETING PLANS ABSTRACT: Consumer behaviour strongly affect the consumer buying process, hence marketers always want to know what is actually happening inside customer's mind in order to provide additional values of products to users to satisfy their needs and wants. However, it is mainly influenced by three key factors - cultural factors, social factors and psychological factors - that are vital conditions for every marketing strategy to be considered before launching in the market. In cosmetic industry, although L'Oréal is the leader of the market, it is necessarily for the company to concern these factors in its marketing plan, so as to gain the market shares and remain its position above rivals such as P&G and Unilever. The report will try to find out the role of consumer behaviour in marketing strategy planning and discover the process of how L'Oreal adapt the three factors to their marketing plans order to achieve success. INTRODUCTION The term consumer behaviour is defined as "the study of how individuals, groups and organisations select, buy, use and dispose of goods, ideas or experiences to satisfy their needs and wants”(Kotler & Keller, 2009:150). In other words, the study focuses on how individuals spending...

Words: 3009 - Pages: 13

Premium Essay

Manager One

...[pic] Henry Schwartzman -- Quality Giant (A) Henry Schwartzman -- Quality Giant (A) Enrique Schwartzman (Henry for short) came to the U.S. in the early 1950's from Chile. When he arrived he vowed to make something of his life and provide his young family with all the benefits he had been denied. Today he is a graduate of a prestigious Eastern engineering school, and after thirty years of hard work, he feels he is nearing his dream of success. His success is evidenced by his recent promotion to Manager of Quality Control at Walsh Cosmetics, reporting directly to the Plant Manager. At a party thrown by his former engineering group, his colleagues had jokingly bestowed upon him the title of Quality Giant. (Henry is only 5' 4" tall). As he surveyed his spacious new office, he thought of the many long years he had spent as a mechanical engineer. Somehow he had never envisioned himself becoming a manager of Quality Control. But here he was, waist (waste?) deep in an area where he had received little, formal academic training. Henry was not particularly worried. His training in engineering had been quite rigorous and he felt he could handle whatever technical preparation was needed for the new job. Additionally, before assuming his new duties he had spent several weeks at a quality control (Q.C.) training program run by one of the foremost Q.C. consulting firms in the country---Lopez, Lopez, and Associates (LL&A). The Lopez twins (Lopez J. Lopez and Lopez X. Lopez)...

Words: 2419 - Pages: 10

Free Essay

Loreal Market Report

...Whispers from within the multi-billion pound luxury goods sector suggests that the Avon lady is about to be taken over. For donkey's years the catchphrase 'Avon calling', accompanied by door chimes, has been associated with sales reps who went from door-to-door hawking the US cosmetic giant's products. It has been a highly lucrative business for many 'local' agents and Sunderland-based Debbie Davis recently became the first Avon rep to earn more than £1million by knocking on doors. Avon Products Inc's shares have been in strong demand in New York of late and improved a further 1.2 per cent to $33.33 early yesterday amid hot gossip that it is attracting the attention of several big industry players. L'Oreal, the world's largest cosmetics and beauty company, is rumoured to be lining up a cash offer in excess of $44 a share. More... Live market data {} Share tips round-up {} Canadian pension fund plan rival Potash Corporation bid Procter & Gamble and Anglo-Dutch giant Unilever, 20p off at 1794p, are both believed to be keeping a close eye on the Avon situation. Dove-to-Aviance beauty group Unilever recently agreed to acquire Alberto Culver, the world's sixth largest hair care manufacture, for £2.3billion, so looks to have enough on its plate. But dealers hear that chief executive Paul Polman could still be interested in Avon, whose boss Andrea Jung is one of the longest tenured female chief executives in the US. Recently boosted...

Words: 861 - Pages: 4

Premium Essay

L'Oreal Business Strategy Case Analysis

...Background In 2003 L’Oreal was the world largest cosmetics company. L’Oreal started in 1909 by a French chemist name Eugene Schueller. After starting his business and selling in Paris, he decided to start exporting to other European countries. Gradually, the products were distributed to the United States, South America, Russia and the Far East. By 2003, they had entered 103 countries through 290 subsidiaries with more then 80% of their sales outside of France. Since it’s establishment, L’Oreal has marketed over 500 brands, with more then 2,000 products. The products are divided into four product categories: consumer, luxury, professional and active. With these four categories, they were able to cater to the needs of hair, skin, and makeup for different cultures. Every year, they were able to produce a high return even with the economy at a decline. Ran by CEO Lindsey Owen-Jones, they were being lead strongly in a competitive market. They understood the importance to invest in their research and development for the future of their products and company. L’Oreal is unique in that it understands whom it is catering to and from there; they plan a strategic execution for it. L’Oreal understand that competition is local and caters to their local completion depending on where they are. There products and as well as their marketing promotes the products that they know will do well. Strengths L’Oreal is a strong global company, and the Financial Times voted them as the 20th most...

Words: 1209 - Pages: 5

Premium Essay


...Marshea Brown December 1, 2014 In an effort to global expansion Nestle’ underwent the second-order change. This change was transformational and fundamentally changes the way the company function. In the 1900’s they filled the need in the world market of Dairy products in the United States to meet the increased demand due to the First World War. In the 1940’s a bold move to relocate executive offices offshore to the United States to improve its efficiency and productivity. In 1974 the acquisition of L’Oreal, a struggling cosmetic giant was the company’s first venture in non-foods. Nestle continued growth with the purchase of Alcon Laboratories Inc a U.S manufacturer of pharmaceutical and ophthalmic products. In 1984 it returns to foods with the purchase of Carnation. For over three quarters of a century Nestle’ has built a diversified global company. Brabeck-Letmathe, CEO of Nestle’ believes that taking incremental approaches to change is better than giant leaps, I agree with that analogy. The Nestle’ is a worldwide brand, strong in quality products and management of people and resources. Now, Brabeck-Letmathe believes that during crisis moving into other markets may be necessary, but the strength of Nestle’ is in its management team and quality. I had dinner last night and ate a Lean Cuisine and on the back of the box to this delicious meal was Nestle’. The changes of Nestle’ would be simultaneously multiple requiring a sequence of smaller changes. In the effort for global...

Words: 302 - Pages: 2

Premium Essay


...high-end department stores, and specialized boutiques. Each level of L’Oréal brand pyramid occupies a certain price area, which meets the needs of Chinese consumers from a price sensitivity perspective namely due to the wide income gaps in China. Now beyond price, L’Oréal products go through different tiers of sales channels including supermarkets, pharmacies, hair salons, department stores, and specialized boutiques. Even L’Oréal brands have their own unique ‘personality’ – L’Oréal Paris is a high-performance technology brand, Maybelline New York is fashion driven, and Garnier is often characterized as a natural brand. Diversity in products, branding, and sales distribution all contribute to L’Oréal’s success in cornering the beauty and cosmetic market in China today. Local Acquisitions As in many large corporations, acquisition plays a big role in L’Oréal’s strategy...

Words: 1174 - Pages: 5

Premium Essay

Male Cosmetics

...INTRODUCTION: The purpose of this memo is to identify ways to take a consumer product that has historically appealed only to the female sector, and change the image, ideas and thoughts of the product in the eyes of the consumer. In recent years cosmetic marketers have found ways to attract the male market by changing up their marketing strategy, image, and approach. Fortunately many cosmetic giants have found great success is selling everything from hair products to nail polish to the younger male population, and they are even beginning to penetrate the older generations as well. Although this market has brought great returns for cosmetic companies, there is still abundant potential to be reached and many opportunities to capitalize on. To fully saturate the market, and understand, and meet the needs, wants and the demands of the consumers, key solutions will be identified by answering questions like: what motives do men have to use cosmetics, how do men learn about cosmetics, and how marketing to males differs from marketing to females. In addition to these questions other specifics will be addressed as well. ANALYSIS: When it comes to purchasing cosmetics and other appearance enhancers, men have a variety of motives that induce problem recognition, which leads them to explore different solutions. A large chunk of today’s men seek to associate themselves as being groomed, prestigious, and trendy. These motives can be stimulated by both rational and emotional ideas. Some of...

Words: 2871 - Pages: 12

Premium Essay

Performance Management at Vitality Health Enterprises, Inc.

...Performance Management at Vitality Health Enterprises, Inc. The Health and Vitality of Vitality Health Enterprises James Hoffman, the newly appointed vice president of Human Resources of Vitality Health Enterprises, was pleased when he saw an early preview of the earnings figures for the fourth quarter of 2011. But he knew better than to relax. Competition in the personal care products sector was cutthroat, and complacency was a recipe for obsolescence and loss of market share, particularly in cosmetics and nutraceuticals. Vitality was riding high on a six-quarter string of strong revenue growth that had surpassed analyst expectations. However, as emerging markets represented a growing portion of business revenues, the company was becoming increasingly exposed to volatility and uncertainty and, without prompt corrective action, would soon be poised to trip over its own feet. The cost of research and development continued to climb, and Hoffman feared that the chain of success was allowing employees to relax, leading to a culture of ineffective performance management. There were even whispers of discontent from the marketing team about a growing number of missed product launches. Hoffman knew that Vitality had recently struggled to maintain its position as an industry leader in innovation and he worried about the slow but notable increases in employee turnover, especially among the highly talented research scientists. Without their expertise, Vitality couldn’t remain vibrant...

Words: 1463 - Pages: 6