Chanel And L'Oreal Competition


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The second direct competitor to Chanel is L'Oréal, the world's largest manufacturer of high-quality cosmetics, perfumes, and hair and skin care products. Although L'Oreal the company doesn't manufacture a perfume it owns the brand Lancôme that produces Tresor a perfume that rivals Chanel. In the chart below, it lists the US female fragrances brand share by value from the 2002 Tablebase data. The chart shows how the Lancôme perfume Tresor, Estee Lauder and Chanel are in relation to each other.

Manufacturer Brand % 1996 % 1997

Estee Lauder Pleasures 5.8 5.9
Estee Lauder Tommy Girl n/a 5.7
Estee Lauder Beautiful 5.1 5.2
Unilever Eternity 3.6 3.5
Lancome Tresor 2.

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9 3.1
Unilever Elizabeth Taylor 2.7 2.9
Unilever Obsession 2.6 2.4
Chanel Chanel No 5 2.2 2.2
Elizabeth Arden Fifth Avenue 1.6 1.6
Estee Lauder White Linen 1.3 1.6
Other Overall 72.2 65.9

Tresor, French for "treasure" is priced at around $86.00 while its competitor Chanel perfume has a range of $70-$250 per ounce. Tresor also has a beautiful collection of body crème, bath gel, body powder and others that carry on the feminine smell of Tresor.
Parisian Eugene Shueller, a chemist who was the inventor of synthetic hair dye, established L'Oreal in 1907. By the 1920's the company expanded to include shampoo and soaps as well as advertise its products on the radio before any of the competitors of the time. In 1953 the company formed licensee Cosmair to distribute its products to US beauty salons. Cosmair helped them add on perfume and make-up to their inventory and eventually became L'Oreal USA in 2000. The company decided to go public in 1963 unlike its opposition Chanel who has remained privately owned. In 1965 they acquired the upscale French cosmetics maker Lancôme. Lancôme makes up the luxury division of L'Oreal, which also include brands like Ralph Lauren and Giorgio Armani. The Luxury Products Division develops prestigious brands sold in exclusive and selective outlets: department stores, perfumeries, travel retail outlets and the group's own boutiques. Its mission is to offer customers personalized advice and service. The division markets useful products that integrate the latest innovations, and whose high additional value displays the quality of L'Oréal's Research.
Lancôme's history is a somewhat different and more romantic than the beginnings of L'Oreal or Chanel. In 1935, while vacationing in the French countryside, Armand Petitjean happened upon a charming castle ruin- Le Chateau de Lancôme. He was inspired by the delicate, fragrant roses which grew among the weathered stones. The rose encapsulated the feminine beauty of a woman. M. Petitjean chose the rose as the symbol of his new company, Lancôme. He orchestrated Lancôme's first appearance with great skill. In 1935, he launched five new fragrances simultaneously, presenting them to the world at the June opening of the Universal Exhibition in Brussels. (www.factiva.com)
As for today, Lancôme's mission is to provide women around the world with the highest quality products and services that fulfill their quest and enthusiasm for beauty. The cornerstones of the brand are its four key values: caring, innovation, expertise and the "French touch." From its sumptuous fragrances to it high technology skincare and fashion-forward cosmetic lines, Lancôme is synonymous with elegance and chic French style. Lancôme delivers technologically advance skincare, body care, sun care, makeup and beautiful fragrances exclusively through prestige department and specialty stores. Women seeking the finest in beauty look to Lancôme for quality, style and results. (www.loreal.com)
L'Oréal began marketing its upscale Lancôme line to younger women in July 2004 funded by an estimated $300 million advertising budget worldwide. The budget will include a alluring and imaginative new print campaign which is designed with women in mind through its exceptional photography camera-work, colors, clear and concise vocabulary, and products that showcase what they are and what they do. In a way the new Lancome print ads will be comparable to the work of Andy Warhol on the Chanel No. 5 perfume bottle. The September issue of Vogue will feature an 8-page gatefold impact unit -- the first type of unit the magazine has featured in five years -- which will begin with a leader featuring Lancome's new brand statement: "Experiencing beauty is like a smile . . . an energy, a feeling that takes us over . . . completely." (www.factiva.com)
Approximately one third of the global media budget will be spent in the US. The campaign will officially launch in September issues of women's fashion magazines including Allure, InStyle, Vanity Fair, Vogue, W, and Elle. Other magazines that will feature the ads include Harper's Bazaar, Essence and Latina. Outdoor locations in New York City and Los Angeles will include Grand Central Station, malls capes, buses and taxi tops.
"Lancôme is always evolving as a brand," states Edgar Huber, President of The Luxury Products Division, L'Oreal USA. "We know the importance of keeping our image fresh and as a leading luxury brand we have an obligation to continuously surprise, astonish and reinvent. This new campaign clearly conveys the current image of Lancôme." (www.loreal.com) In opposition to Chanel, Lancôme tries to innovate and refresh their image over the years. Chanel does try and evolve with the changing times, but it still tries to keep its simple and classic style throughout.


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