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Strategic

In: Business and Management

Submitted By sfirena
Words 1236
Pages 5
Florencia Irena
BUS 401
L’Oreal: Global Brand, Local Knowledge
11 July 2013

Situation: • L’Oreal aims to offers everyone, all over the world, the best of cosmetics in terms of quality, efficacy and safety, to give everyone access to beauty by offering products in harmony with their needs, culture and expectations. • L’Oreal sell the United States to Americans, the United States to the Chinese, Italian elegance to the Japanese, French beauty to Africans, and Japanese chic to Brazilians. • By the late 1990s, L’Oréal and Maybelline were the two fastest growing brands in the U.S.: L’Oréal was perceived as the supremely elegant, high-priced luxury brand, while Maybelline was viewed as a high-quality/low-price value brand. • Lancôme was L’Oréal’s largest and best known premium brand and held 5% of the global premium beauty and personal care market. Lancôme was high-priced and served as the channel for L’Oréal’s most costly and intensive R&D projects.

Stakeholders: • Lindsay Owen-Jones, CEO in 1988 • Jean-Paul Agon, current CEO • Eugene Schueller, developed a hair-color formula for L’Oreal • Patrick Rabain, head of consumer products

Competitor: • Procter & Gamble, 1st in advertising • Unilever, 2nd in advertising • Revlon • Avon

Target Market: • Salons • Beauty Department Store • Personal care / Beauty product users

Strategy: • L’Oréal began targeting men in 1999 when it introduced L’Oréal Feria for Men and Casting ColorSpa for Men in 2000. • L’Oréal was organized into three major groups: Cosmetics, The Body Shop, and the dermatology branch, Galderma Laboratorie. L’Oréal’s operations were broken down into four divisions: o Consumer Product Division – Retail, outlet/channels o Luxury Products Division – Department stores, duty-free o Professional Products...

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