It is safe to say that at this point anyone can identify the tagline “Because you’re worth it” and to what brand it belongs to. L’Oreal is one of the top leading brands in the hair and beauty industry. Not just in Europe where it originated in 1907 by Eugene Schueller, rather across nations in various countries. By the mid-1930’s Eugene not only expanded L’Oreal throughout Europe but also gained a leader for hair and body care products.
In the 1950’s consequent to World War II L’Oreal entered the US Market. It is believed that if can be prevalent in the United States and European markets then it is time to consider further globalization. After Schuellers death in 1952 the leadership was passed onto François Dalle – his right hand. Dalle continued expanding internationally. In 1970’s he revamped the whole structure of the business in order to protect it from becoming a state owned property. This was because the left wing of the French government was demanding the authority to all top firms.
Soon after this, L’Oreal hired many officials that just enhanced the company’s growth in the United States. Owen Jones, who was originally from the United Kingdom, became the CEO of the company. He focused on positioning the products in the market. It is understood from a marketing point of view, that if a product is kept where it is perfectly visible to the consumer eyes it is bound to be successful. Jones acknowledged that and acted accordingly. This was a simple but critical realization that played a vital role in its success.
Even though L’Oreal did face a sufficient amount of competition from the big corporate companies such as Unilever and P&G, it never backed down. After holding stocks for 5 years in Helena Rubinstein and Ralph Lauren Fra...
... middle of paper ...
...al can be described as distinct and innovative, where communication is emphasized upon. The people of the organization are hungry for knowledge and development. Each product is scrutinized in depth; each idea is heard and worked upon. It is an accepting place for those who are ambitious and individuals are judged on what they do – not who they are. Similar to any other firm L’Oreal also faced major competition in the consumer market – Unilever, P&G and Revlon were its main competitors in the year of 2004. However the company felt confident with its market position while its competitors struggled.
L’Oreal led to the globalization of American beauty and its products. At this point individuals all over the world are utilizing their products. It has built a loyal customer base that is almost impossible to compete and like say they – it is “because you are worth it”
Estee Lauder focuses on the marketing, manufacturing and the selling of skin care, fragrance, makeup and hair care products throughout the world. (Gale) Estee Lauder Companies Incorporated generates over ten billion dollars a year from being sold in over 130 countries with over twenty companies it owns. (LLC™, 2013) Their products are very accessible by being available in establishments like Macy’s, Bloomingdale’s and Nordstrom’s. Their products are also available in their freestanding stores and online. The company offers a variety of products for the customers to choose from making it thus more attractive to a customer than a company that has limited assortments. Estee Lauder provides quality products while providing appropriate quantities to its distributors. It instills trust with its customers so that when they purchase an Estee Lauder product, the customer will less likely have buyer’s remorse due to customer satisfaction.
As stated in the case, “the market for energy drinks was growing; between 2010 and 2012, the market for energy drinks had grown by 40%. It was estimated to be $8.5 billion in the United States in 2013 [and] forecasts projected that figure to reach $13.5 billion by 2018” (pg 5). However, much of this market’s revenue -- 85% in fact -- is dominated by five major brands, while the remaining 15% is split between approximately 30 regional and national companies. (pg. 5). With this saturated market, it might not be best for Crescent Pure to enter as a completely new product to the industry, as there is the possibility that it will be squeezed out of the profit shares by more established brands -- especially if it is not properly secure in its identity. In addition, while the market for energy drinks appeared to be growing at an exponential rate compared to the market for sports drinks -- which increased only 9% in five years and would be at approximately 60% of the rate for energy drinks in 2017 (pg 6) -- the consumers appeared to be wary of partaking in the market for several reasons, which would potentially harm the reach of Crescent Pure. These concerns included rising news reports discussing the safety of energy drinks (pg. 5). Taking into consideration the data provided in the case that concerns reasonings of why consumers choose specific drinks over others, there
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.
As you read further you will see why MAC is such a unique entity in this well established industry. Every aspect of what makes MAC Cosmetics; "MAC" being its products, its location, its brand image, or its phenomenal price point is unique and goes against most typical marketing methods. As we all know product, price, promotion and place are the four fundamental variables that either make or break a company. MAC is currently the only Estee Lauder brand that is not only meeting; but exceeding its annual sales goals. Last year MAC surpassed its sales plan by 121 million dollars! Which is unheard of in this industry.
L’Oreal’s problems and root causes should first be identified and addressed. The root causes of L’Oreal’s problems are:
Being a young adult, it is often hard to find that perfect scent. Why must the young woman find her perfect scent? In order to grow and express herself as she matures. Choosing two memorable advertisements, “Daisy” by Marc Jacobs and “La Vie Est Belle” by Lancôme, as options. Both are likeable perfume commercials; however, the “Daisy” advertisement is better than the “La Vie Est Belle” advertisement because it plays lively music, uses vibrant colors, portrays happy actresses, and includes a clear selling point.
Dove is a personal care trademark that has continually been linked with beauty and building up confidence and self-assurance amongst women. Now, it has taken steps further by impending with a new advertising strategy; fighting adverse advertising. And by that it means contesting all the ads that in some way proliferate the bodily insufficiencies which exits inside women. Launched by Dove, the campaign spins round an application called the Dove Ad Makeover which is part of the global Dove “Campaign for Real Beauty” what has been continuing ever since 2004 and times print, television, digital and outdoor advertising. As Leech (1996) believed,” commercial consumer advertising seems to be the most frequently used way of advertising.” In which way the seller’s chief goal is to sway their possible spectators and attempt and change their opinions, ideals and interests in the drive of resounding them that the produce they are posing has a touch that customer wants that will also be in their advantage, therefore generating false desires in the user’s mind. Dove is vexing to influence their viewers to purchase products they wouldn’t usually buy by “creating desires that previously did not exist.”(Dyer, 1982:6)
Revlon was established in 1932 and organization is putting forth beauty products for ladies everywhere throughout the domain. Product I purchased from Revlon will be Revlon Nourishing Crème which is exceedingly powerful and dependable product from organization. The product has very much pressed seal pack with cost named on the highest point of the parcel and guidelines legitimately given by the organization how to utilize the Revlon Freckle Nourishing Crème. (Revlon Reports 2011). Revlon has been the most renowned brand for elegant ladies in light of the fact that they never trade off on the nature of their products, effortlessly accessible at the business sector on the grounds that they have association with world best inventory network organizations and shoppers adoration to purchase their products from different chains of stores the world over. Throughout the years, Revlon among other business sector players has turned into the name and trust and quality for their purchasers and I like to purchase Revlon products at the most . Store network system outline is thought to be exceptionally critical and
Public Information (2011) L’Oreal International [Online] Paris: L’Oreal Group. Available from: http://www.loreal.com/_en/_ww/index.aspx?FROM=WW-Dispatch-LOREAL-CORPORATE. (accessed 3 Sep 11)
Through direction from Owen Jones and his hard-charging American management style, L’Oreal has gone through a transformation from a European based cosmetics company to a world leader in the cosmetics industry. L’Oreal’s particular skill is to buy local cosmetics brands, give them a facelift, and export them around to world. Their good brand management is about hitting the right audience with the right product, through a very carefully crafted portfolio. Each brand is precisely positioned to fill a certain market or product niche.
Before Lafley took over for Jager, P&G was stretched to the max, haplessly wasting away resources and opportunities with an overcomplicated business strategy. P&G was raising prices on their best selling brands to cover for missed sales and high production costs for new brands that failed to be a successful [Lafley, 2003]. They had hired too many employees and were involved in several investments that were unprofitable. P&G had not had a hit product since the launch of ALWAYS feminine products in the 1980’s and each additional product flop only stretched their recourses thinner and thinner. Costs were high and moral low with employees not afraid to voice their lacking confidence with P&G’s leadership and direction. Subsidiaries were blaming corporate for their missed earnings and visa versa [Lafley, 2003]. Strategies between the brands at P&G clashed and each were out to safe guard their own interests. The prices of their consumer products were too high while the company failed to deliver customer satisfaction. These factors distracted them from what had originally made them successful – being an industry leader in innovation (Markels, 2006).
In 1984, new CEO Owen-Jones began pushing for L’Oreal to become the largest cosmetics firm in the United States. In order to accomplish this, the company began assessing acquisition opportunities that would broaden L’Oreal brands throughout the U.S. The first tw...
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.
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.
I visited a departmental store and I found that the “L’OREAL” wide range there and experiencing the biggest push in the store. L’OREAL products occupy large space in the store and beautiful counters were there settle there. Every kind of L’OREAL product display there.