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L'oreal case study, david
L'oreal case study, david
L'oreal case study, david
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L’Oréal’—An Overview
Company History
L’Oréal was created in 1909 after Eugène Schueller, a Parisian chemist, invented the first artificial hair dye. The name came from the company’s first hair color, Auréole—the French word for “aura of light”. Schueller quickly diversified the company to incorporate soaps and shampoos and soon began to advertise on the radio. As demand grew for L’Oréal products, Chairman François Dalle took the company into the international consumer products market.
In 1963, the company became public. In the next few years it expanded drastically. L’Oréal’s first major change occurred when it acquired Lancôme, a high-end French cosmetics line, followed by the company’s entry into pharmaceuticals in 1973. It later sold off most of its stake in the pharmaceutical group, but retained a 19.5% share. This was the beginning of a positive growth period for L’Oréal —its motto at the time was “savoir saisir ce qui commence” (seize new opportunities). L’Oréal began to further expand globally and added companies in Romania, Slovenia, China, Japan, Canada, and the United States over the next 20 years. During this time, the corporation invested in numerous product launches that strengthened its brand image.
In early 2000, L’Oréal obtained the cosmetics company Kiehl’s, a multicultural beauty product manufacturer called Carson, and salon product producer Matrix Essentials. These acquisitions were followed by the introduction of the United States’ Fructis line, an important expansion into the domestic market for shampoos and conditioners. In an effort to continue positioning the company as a high end brand, L’Oréal began to market its Lancôme products to a market of younger women (L’Oréal).
According to Hoovers’ analy...
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...Oréal: Strategic Initiatives. (2010). Onesource. Retrieved October 30, 2010, from
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Our Company: History of L’Oréal. Retrieved (2010, July 16) from
http://www.loreal.com/_en/_ww/HTML/our-company/history-of-l-oreal.aspx
Partnering with L’Oréal. (n.d.). Retrieved from
http://www.loreal.com/_en/_ww/lorealpartners/corporate.aspx
Porter, Michael E., Competitive Strategy: Techniques for Analyzing Industries and Competitors
(1980). University of Illinois at Urbana-Champaign's Academy for Entrepreneurial
Leadership Historical Research Reference in Entrepreneurship.
Richardson, Arna. (2010). Cosmetic & Beauty Products Manufacturing. Ibisworld. Retrieved
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Did you know, the personal care products you use every day have dozens of toxic chemicals that link to cancer, asthma, learning disabilities, and more? A campaign community working to build a healthier planet called The Story of Stuff and the Campaign for Safe Cosmetics, created a seven minute film called Chemicals in Beauty Products: The Story of Cosmetics. The purpose of this campaign film is to inform its viewers, specifically women and moms, about the toxic chemicals in our everyday personal care products, from lipstick to baby shampoo, that we may not know about. It addresses the top harmful chemicals that we are putting into our bodies, the products they are most likely found in, and
Horst Rechelbacher founded Aveda in 1978. Aveda started with one product shampoo that Rechelbacher had created in his kitchen sink leading to the development of conditioners and all other products. Aveda is now a successful business with 5000 employees, and has store locations in 33 different countries and 7231 beauty shops. All of Aveda’s products are manufactured in their factory in Minnesota; the Estee Lauder Company now owns Aveda. Estee Launder purchased Aveda in 1997 for $350 million, since then Aveda has doubled their annual sales.
...he oldest companies producing skin care and pharmaceutical products, it has a high level of customer care in order to create high value from their products and high customer satisfaction.
Proctor and Gamble was founded in Cincinnati, OH, by William Proctor and James Gamble in 1837. Initially the company was started to compete with the 14 other soap and candle makers already established in Cincinnati, but around the end of the century, Proctor and Gamble dropped candle manufacturing altogether to focus on soap production. By 1890, Proctor and Gamble had increased their production to over 30 different types of soap.
United Kingdom. Gotham. Advertising Standards Authority. ASA Adjudication on L'Oreal (UK) Ltd - Advertising Standards Authority. July 27, 2011. Accessed November 18, 2013. http://www.asa.org.uk/Rulings/Adjudications/2011/7/LOreal-(UK)-Ltd/SHP_ADJ_149632.aspx.
L’Oreal is the largest beauty company in the world and in the past 100 years that it has expanded, it has supplied to 130 countries with offices in 58 different countries. This global company is the number one premium cosmetic product in the world today and has taken the core and beauty of people’s everyday lives since 1907, the beginning of L’Oreal. The superior leadership of a guy named Eugene Schueller started this strategic company with basic products such as hair care and also the first man-made hair color product. Five years later you could find these products in Austria, Italy, and the Netherlands. In 1934 Eugene invented the first mass market of soap less shampoo and this led the success of L’Oreal in the country of Europe which soon recognized them as the leader in body care and hair coloring products. Finally soon after World War II L’Oreal moved into the United States and the company seemed to change. When L’Oreal expanded the competition was more involved and more growth was needed in order for the company to be more successful. With problems like this, the strategy and planning that has been applied in L’Oreal has been huge for the success of the company. L’Oreal realized they needed to expand in other fields of the beauty market and target markets in order to stay alive and successful. This would mean that L’Oreal would need to acquire other companies as part of their expansion and through this they have kept the constancy of the leading company with acquisitions of many small companies. Finally in the 1980s they started their globalization into new markets all around the globe by acquiring new companies that would form the cosmetics that we know today. Although the role of acquisitions has never been the main focus of the company, internal growth and strategy was the number one reason for L’Oreal becoming such a big name. The main strategy was to adopt new companies and expand it from within believing that the brand could be taken globally and benefit their overall brand portfolio. The main role of acquisitions was to increase and lengthen the internal growth rate. L’Oreal started acquiring companies from the beginning of their name. They started with the basics of their own brands such as L’Oreal Professional, L’Oreal Paris, Kerastase, and Club des Createurs de Beaute.
With the increased monitoring and enforcement of labour practices; Nike being in the public spotlight and subject to negative publicity on their subcontracted factories is forced to readjust the working conditions of their cross ocean factory workers to abide with proper regulations. This has caused Nike to modify their factory standards and employee working conditions by; limiting the maximum hours worked a week, implementing proper ventilation systems to filter out toxic fumes, increase worker access to protective equipment, and increase the capacity of medical facilities and medical staff for their workers.
Alan G Lafley, the former CEO of Procter & Gamble, once said “Let’s execute along this strategy, but know that we’ll probably get some of this wrong, so be open to changing it (AZQuotes.com). Procter and Gamble has undergone many strategic changes in the last 15 years which have had a profound impact on the company’s profits and market share. The strategic changes that Procter & Gamble has undergone have been both positive and negative. While it is important to document the financial impact of the changes under Alan Lafley, it is also important to track the changes and growth under the current CEO David S. Taylor, while also showing Procter & Gamble’s competitive advantage.
1911 was the year NIVEA CRÈME was born. In fact, NIVEA CRÈME required the work of three resourceful men: Dr. Oscar, Dr. Isaac and Prof. Paul, not just one for its development. Dr. Oscar had acquired Beiersdorf in Hamburg from its founder Carl Beiersdorf in 1890. After a lot of research, they developed the first stable grease and moisture cream in the world – NIVEA CRÈME. It contained:
P&G became the innovator in many large brands, this started with Ivory Soap. P&G boasted that this was the purest soap as well as the soap floated which was a concern of many people in this time. P&G put in a great deal of effort to market the soap in local papers, radio and other forms of media, this was a first effort by any brand to market with “Mass Media”. (P&G, 2014) P&G innovated the way the other brands began to market as well. P&G saw the opportunity to build a relationship between the consumers and product. As the 1900’s rolled around P&G grew into international markets it purchased another soap brand called Fairy Soap, out of England, which also marketed the soap, could float.
Based on the information provided in the L’Oreal case, Yue Sai struggled to grow and capture additional sales in the high-end Chinese cosmetics sector. In the past, L’Oreal attempted to position Yue Sai in several different ways which can be viewed as detrimental to the company image, showing uncertainty as the company struggles to see which positioning strategy will stick. The most recent positioning presented in the case, which desires to “deliver Yue Sai’s longstanding brand promise that ‘Nobody knows Chinese skin better than Yue Sai’”, allows the highest probability of success for the company capitalizing on countless fresh trends in Chinese cosmetics (6). The positioning statement would reflect this new strategy: “For the modern Chinese woman Yue Sai offers a line of high-end cosmetics. Unlike other high-end cosmetics Yue Sai combines traditional Chinese medicine and sophisticated technology adapted to the unique skin type of Chinese women.” Yue Sai saw reasonable success and hope in the new Vital Essential line which utilized traditional Chinese medicine and, therefore, resulted in above average repeat purchases. Continuing to focus the strategy around traditional Chinese medicine should benefit Yue Sai considerably. Another suggested strategy would be to wholly reposition Yue Sai, however this is ill advised. As stated in the case, Yue Sai tried numerous different positioning strategies, which ultimately provided no clear path strategy. Repositioning would show uncertainty in the company, lowering brand value in the eyes of the consumer.
The LVMH business portfolio began to take shape in 1987 with the merger between Louis Vuitton and Moet Hennessy which was a four billion dollar merger. Over the course of time, LVMH has acquired over 50 luxury brands, such as Donna Karen, Fendi, and Sephora. They called it, “a collection of star brands and rising stars.” LVMH found this industry to be timeless and modern, highly profitable, and very rapid growing.
The transnational corporation Nestle Company founded in 1886 based in Vevey, Switzerland, sells its products in 189 countries and has manufacturing plants in 89 countries around the world, boasting an unmatched geographic presence. The company started off as an alternative to breastmilk and initially looked into other countries for an increase in global opportunities. It founded its first out of country offices in London in 1868, and due to the small size and inability of Switzerland to compensate growth manufacturing plants were built in both Britain and the United states in the late nineteenth century. A large portion of Nestlé’s globalization came in the 1900s which was when it first moved into the chocolate business after
Kraft, the owners of Oreo, decided to take their success in America and introduce the product into China, and Indian markets. The problem with their ambitious plan, was that Kraft believed since they were so successful, their marketing strategy and even the cookie, needed