Sunday, December 7, 2014

Ch. 8 - Segmenting and Targeting Markets


Each and one of us is a unique individuality with his/her own needs and wants. However, consumer markets as well as business markets has similar characteristics that make them to desire similar products. Therefore most successful organizations practice market segmentation, which contribute to better overall functioning of the firm. Lancome uses specific strategy for market segmentation called demographic segmentation which divides market into groups based on demographic aspect, such as gender and age. It helps Lancome to better target its consumers.


Lancome is originated as a perfume company, but the company has grown rapidly and later expanded its offering to cosmetic and skincare products for men and women. Its women's collection is much broader than men, where men's collection is directed mostly to older men.The company wanted to diversify from its status as a leading women's skincare manufacturer by using its expertise and technology to discover the differences between men and women aging process. In
2007 they launched skin care range, first in Europe and not a long later it entered the US market, that is specific to the male consumer. Targeting the older male generation, was a smart move by the company, because figures show ,that the senior consumer group is the fastest spending group in US and European markets.

In women's sector Lancome focuses on both, older and younger women. The company's older female consumers are interested mostly in intensive skin products; such as wrinkle release and anti-aging. The younger women seek for more basic products; such as proactive skin care products. In 2011 Harry Potter beauty, Emma Watson became the new Lancome's youngest ambassador. She launched Rouge in Love Lipstick campaign, which was aiming to lure young customers away from gloss and back to lipstick. Watson had brought a fresh spirit to the brand which contributed to gaining younger consumes.



Sunday, November 30, 2014

Ch. 11 - Developing and Managing Products

Ideas for new generations of products have various origins. Lancome's resources for developing a new product are combinations of customer's feedback, research and development and of course constant innovation and quality, which are part of Lancome's mission. Innovation is Lancome's essential component for new product development. Lancome cares about its customers, and values its clients opinions about their cosmetics. Taking all the judgement into consideration, makes them work continuously on their product's innovation based on skin types, age, and continent . All the information is forwarded very thoroughly to the Lancome's researchers, so they can transform dreams into reality.

Teint Miracle

For leading luxury cosmetic company such as Lancome, beauty is ceaselessly reinvented living science. Therefore, for almost eighty years Lacome is challenging the limits in technology and creation. Lancome relies on the three research and development centers, here in the United States, in France and in Japan, and all of its products, no matter where is manufactured has the same quality. The company employs 3,000 researchers, who work together with renowned scientific name in biology, dermatology, pharmacology and even psychology. Lancome's laboratories are one of the most advanced laboratories in the world, and for that reason their researchers posses great knowledge about the skin, its mechanism and its needs per age, type, and per continent. Lancome pioneered in neuro-cosmetics technology, which is about product with ingriedients that can help nerve endings for better cell communication. Another pioneer discovery is Lancome's new-to-the world product, Teint Miracle foundation.
                               Genifique yough activator
Lancome science discovers the inner light of perfect skin and recreates it. After ten years of research, seven international patents pending, Teint Miracle opens a new era for cosmetics.

The company considers the skin as a living organ exposed to stress and emotions. During long research time, Lancome's profesionalists had found a special protein characteristic that keeps skin youtful longer. This amazing formula, which knows its worldwide success now and which is desired by every woman today, is called Genfique yough
activator.

As I mentioned earlier, Lancome has its laboratories in three continents. It is a international brand which adapts its products to every market, and the Teint Miracle is a great example since it was firstly designed for Asian women; however its excellent formula succeeded all over the world.



Sunday, November 23, 2014

Ch. 12 - Services and Nonprofit Organization Marketing

Goods and services are the outcome of human efforts to meet the wants and needs of people. Economic
production is divided into physical goods and intangible services. Service refers to applying human or mechanical efforts to people or objects. Sometimes it is difficult to distinguish between manufacturing and service firms, however for many manufacturers it is the service that contributes to the firm's success the most. But still we can differentiate services from goods by their unique characteristics, one of which is service quality. Rating the service quality has become a challenge because it is much harder to rank than tangible goods. Service quality is evaluated through a few very important aspects of every service. Lancome service quality is uncontested because it  fulfills the requirements by which customers evaluate the quality of particular firm.  Lancome is committed to provide first-rate quality service customers can trust. Lancome's clientele can be sure to enjoy both the best in product innovation and personalized advice through its beauty consultation. Lancome realizes that the best way to promote the image of their brand is for every employee, especially the ones who work with the customers, to accurately represent that image. Therefore when Lancome recruits employees, they train them about every product they sell. Assurance of Lancome's knowledgeble consultants make the customer feel comfortable and that they can trust the firm. Another component which Lancome implements as part of its quality of service is responsiveness. Lancome strives to answer all e-mail queries within two working days. In addition, the company is dedicated to provide customers with a superior level of customer service until midnight during week days and until 7pm on the weekends. Empathy, the art of seeing a situation through a customer's eyes, is another essential component of company service quality. Lancome's employees always care about this aspect and they provide their clients empathetic service. Within the first moment, customers are welcomed and asked about their preferences. Every customer is treated individually with a one-on-one consultation in order to recognize the customer's genuine needs and to offer professional advice if needed. Moreover, customers are offered trials and demos of specific cosmetics so they can feel more comfortable with the particular product. Customer service representatives perform the service accurately and dependably every time.

(Lancome Internal Marketing )

Lancome realizes that customer satisfaction is deeply dependent on the performance of a company's staff which can be seen as the company's most important marketing tool. Therefore, the company implements an internal marketing strategy across its workforce. The objective of internal marketing is to align every aspect of the company's internal operations to ensure that the staff is as capable as possible of providing value to customers. When the company works in a coordinated way, it can provide a more consistent experience to its customers.

One of the non profit organizations supported by Lancome's was Mrs. Carla Bruni-Sarcozy Foundation, which aims to encourage access to culture, education and knowledge in order to fight exclusion and reduce inequality. Through program under the name "Lancome revelations" which aimed to introduce students in their last year of high school to the creative professions, to reveal their true artistic talent, and to accompany them as they pursue further study."Lancome revelations" program supported students throughout whole year in organizing artistic workshop, offering personalized educational guidance, helping to prepare for the entrance exam to the best art schools. This program was organized in twenty high schools in disadvantaged areas across whole France. Supporting non profit organizations is always a good move, which creates a positive brand image.


Sunday, November 16, 2014

Ch. 10 - Product Concepts







In 1935, Armand Petitjean had founded his own brand Lancome, and from the very first day, he knew he wanted only a prestigious brand or nothing. He took up the challenge, and up until today, Lancome is a high end cosmetic brand serving a luxury products in 163 countries. The French perception of elegance and beauty are still at the heart of the brand's identity. The name "Lancôme" was inspired by the name of the castle "Le Château de Lancosme". The only change was that the silent "s" was substituted with a circumflex, rendering a French name that everyone could pronounce. In addition to the name, the city's name -- Paris -- was added to associate the brand with French chic. However, the design of the logo has experienced some changes since it was first created in 1964Also, the wild roses growing around the ruins of the castle inspired Petitjean to make the company's trademark a single golden rose. The symbol represents Lancome's brand philosophy: femininity, joie de vivre and elegance. The rose has changed from from a cut flower placed sideways at the bottom of print ads to the blooming flower standing tall we see today. Lancome often incorporates rose scents and botanicals into its products. Today, the French rose is widely recognizable as a symbol of Lancome.


Lancome's products are shopping products. They are available through various retail channels. They are considered high quality, luxury products, therefore some people might consider a substitutes. Lancome's commitment is to uphold the highest standards of safety and quality for all the products it makes and sells. Lancome is in full compliance with FDA regulations in all countries where its products are sold. 

Lancome's opening product was a collection of fragrances. The product was enormously successfully, leading Petitjean to expand into skincare. The first skincare product was a multi-tasking repair cream called Nutrix, which is still available on the market after 78 years. Isn't it amazing that we have access to the same cosmetic as the "women who wore gloves" had? In 1938, the brand expanded further into cosmetics. Today, Lancome's product mix is still the same and offers fragrance, skincare and makeup products. Due to innovations and the desire to meet a greater range of customer preferences, Lancome expanded its cosmetic line depth widely. 

Lancome's packaging is very simple, yet very elegant. The rose flower which has appeared on products packages, as well as in ads, serves as the single most differentiating factor for Lancome. The company is aiming to use eco-friendly packages in order to facilitate recycling and reduce environmental damage. For example, the company began using recycled cardboard from papermaker Tullis Russel for the external packing of its perfumes. Tullis Russel offers recycled cardboard that preserves the look, printability and technical performance of the original packaging. Even the glosses are packaged in eco-friendly cardboard packaging certified by the Forest Stewardship Council.



Sunday, November 9, 2014

Ch. 17 - Personal Selling and Sales Management

Personal selling occurs when a sales person who works for a company builds a relationship with a customer in order to determine their needs and increase sales. Many people probably wonder whether in these times with such sophisticated technology salespeople are still necessary.
Catherine, Duchess of Cambridge
is a loyal customer of Lancome and
among only a few in Britain sent a bottle
of Lancome's Vissionaire 'miracle' serum
"to try as a 'goodwill gesture'".
The answer is yes, they are, and they always will be. Salespeople are very important for companies including Lancome. Personal selling in many cases is more effective than any other form of promotion in obtaining a sale and gaining a satisfied customer. When a customer of Lancome wants to know more about a product he is interested in, he goes to the store because he knows he will be offered a one-on-one consultation. All salespeople who work at the Lancome counter are specially trained to perform these consultations. Because each customer is very valuable to Lancome, salespeople care about the company's long-term relationships with its customers. They want them to be satisfied and happy every time they purchase a product. In 2012, Lancome launched an auto-replenishment program for both their loyal and new customers that has convenience and service as its main goals. Analysis shows that a typical Lancome customer usually buys a new product in store because they receive a free consultation about it. If they are happy with a product, they usually replenish it online. This way of shopping works best with cosmetics that are used routinely such as mascara, foundation or moisturizers. If customers are willing to join the auto-replenishment program, they can set the delivery frequency and receive these products with free shipping and a deluxe mini gift. Moreover, they can also order different items and with free shipping as well so that they can enjoy the convenience of having their favorite cosmetics delivered to them automatically. Usually, the company asks for reviews on gifts or samples they sent with the purchase made on Lancome.com. This way, the company gains a lot of data about customers and their needs. For Lancome, the auto-replenishment program is a great opportunity to understand its customers and how they can improve the quality of customer service on an individual basis so that each of their customers can be treated in a unique way. The program increases loyalty, but it is also a chance to obtain data to inform business decisions. Another loyalty program is Elite Rewards, which I discussed in my chapter 6 post. Building customer relationships is crucial for Lancome, because they want to satisfy every customer.

Lancome's sales system is very well organized. All sales people at Lancome are very professional, enthusiastic, friendly and knowledgeable about the products. The company provides professional training in makeup, skincare and fragrances to all employees. In addition, trained staff get to try out all products so they can understand how they work and to be able to better advise customers about products. Lancome also offers free trials and demos to clients. People love these services and Lancome likes to do it because it is a great way to get the client.


Sunday, November 2, 2014

Ch. 16 - Advertising, Public Relations and Sales Promotion



Julia Roberts

 


Lancome's mobile ad
Lancome is a very well-recognizable brand throughout the world. It's considered as the third leading luxury beauty brand in the world and the top-selling brand in selective retailing. No matter how well established the company is, it should constantly maintain brand awareness and market share through advertising, public relations and sales promotions. Advertising is an important and the most effective part of a company's promotional activities. It draws attention to both existing and new products and persuades consumers to purchase them. When Lancome launches a new product, the company advertises it widely in print, television and via mobile advertising. For example, in order to boost sales through mobile commerce, Lancome is pushing a new product line using eye-catching mobile banner ads in New York magazine's "The Cut". The advertisement's design and clear call to action are likely enough to intrigue a consumer into clicking the ad, bringing the consumer automatically to Lancome's mobile-optimized site where they can watch a video about the entire collection of products or shop online. 

The company uses product advertising techniques to promote its merchandise.
Lupita Nyong'o 
It is difficult not to recognize the Lancome brand because of Lancome's employment of iconic and beautiful stars in its campaigns including Isabelle Rosselini, Julia Roberts, Emma Watson, Kate Winslet, Penelope Cruz and most recently the Oscar-winning actress Lupita Nyong'o, the first African ambassador to represent the cosmetics giant.
They all represent beauty, joyful femininity, glamour and elegance. The commercials create a kind of fantasy for the viewer, making women believe in the beauty of life.
Since its products are sold worldwide, Lancome has hired models with diverse ethnic backgrounds and nationalities in order to target specific markets around the world, employing local models and celebrities to appeal to regional customers. This strategy has have proven successful for Lancome and L'Oreal Luxe in general; Lancome's sales in Asia and North America grew by 8.3% in 2012.




As part of its public relations strategy, Lancome's marketing managers do much to promote responsible, caring and high-quality image. Public relations (PR) play an important role at Lancome where one of the company's PR tools is press relations. For instance, since 2010, Lancome has organized an annual Genifique Day for the purpose of raising funds for St. Jude Children Research Hospital. During eight regional events and on October 24th and October 25th Lancome donates $7 directly to St. Jude Children Research Hospital for every bottle of Advanced Genifique Youth Activating Concentrate, Genifique Eye Light-Pearl or Genifique Yeux sold, to underscore Genifique’s 7-day radiance results. In addition, throughout the month October, the brand
invites people on Instagram or Tweeter to post pictures of themselves making a "hand heart" gesture along with the #LancomeGivesBack hashtag. Lancome will make a $1 donation for each post. Genifique Days has been successful in more ways than one. As Stacy Mackler, vice president of public relations and communications at Lancome, notes,“Not only does this approach allow us to give back to a significant partner, it allows our customer to get involved beyond simply purchasing a product. [...] The ability to share the in-store brand experiences through social media only enhances our customer engagement with our products and with the efforts behind the fundraising,”
Another way of advertising Lancome products is though Gift With Purchase promotion where both new and returning customers can choose seven complimentary gifts depending on the amount they've spent. This method allows customers to sample products with the hope that they will return to purchase the ones they like.

Sunday, October 26, 2014

Ch. 14 - Marketing Channels and Retailing

Lancome represents selective distribution. It is available in only a few select locations such us departments stores, cosmetic stores, own-brand boutiques,  and on dedicated e-commerce websites. The purpose of selective distribution is to have the products available enough for customers to purchase and maintain the prestige of the brand as Lancome is high-end cosmetic. Lancome is distributed in over 2000 stores nationwide, and in more than 160 countries globally.
I recently visited the most busy Lancome counter in New York City which is located inside Macy's at Herald Square 34th Street.
This particular Lancome carries all the products available on the market including Bienfait multi-vital SPF 30 cream. They do a lot of "gift with purchase" promotions. Their recent one is another gift with purchase promotion available on Macy's website and in-store. The good thing about this promotion is the fact that customers can personalize the lovely 7-piece free gift with any $35 purchase, or they can get even more with any $70 purchase. Because Macy's at Herald Square is itself an extremely busy department store, I don't have to mention how busy the Lancome is. The manager told me that this is the best-selling Lancome location in New York City. The location is great and millions of tourists make the area very crowded which is a big attribute for business. The Penn Station stop is conveniently located just by the Macy's entrance. Pennsylvania station is the main transportation hub in New York City serving over 600,000 commuter rail and Amtrak passengers a day which makes it the busiest transportation facility in the United States. What more could a retailer want? As a luxury cosmetic brand, Lancome indicates its products quality by its traditional prices, however, customers can always take advantage of special offers on cosmetics. The brand offers a variety of promo codes to get the best deal possible, for example, 15% off $49 or more plus free standard shipping.

The overall physical appearance is very elegant and spacious looking. The decor is mainly white with some black accents. Merchandise is presented in a very orderly manner which helps the customers better notice or locate products. For example, there is a special counter for its best-selling fragrance La vie est belle with a crystal chandelier hanging above the items on display (see the picture on the right taken during my visit). Even though the store is very busy, the personnel make use of the suggestion selling technique to encourage customers to purchase products. Each potential customer buying a skin care product is offered a one-on-one consultation with a qualified member of the staff.

Saturday, October 18, 2014

Ch. 6 - Consumer Decision Making

Walking through any department store, it is hard not to come across a Lancome counter. But what makes people stop by and purchase their very first or their favorite product from Lancome? Before purchasing a product from Lancome, the buyer goes through a consumer decision process which all of us go through in order to consider every important aspect of a potential product. The first and most important stage of the process is need recognition, that is, where the consumer recognizes what product is able to meet their needs. The customer has needs and wants which are influenced by internal or external stimulus. For example, an external stimulus such as a recommendation appealing to the good quality of a moisturizer can increase the likelihood that the moisturizer will be purchased.
An example of a strong external stimulus is Lancome's Elite Rewards loyalty program which seeks to increase customer acquisition and retention.




Naturally, when customers  recognize a need, they look for specific information about it. People have many opportunities in order to find valuable information regarding a cosmetic they are interested in. One way of searching is internal information search such as looking at previous experience with a product. Personally, I think this is a very reliable method if you don't want to make a mistake with the purchase decision. Lancome's clientele usually return to purchase more cosmetics. An example is Bienfait Multi-Vital Day Cream which  enjoys a very good reputation among customers who often return to purchase more of the product. A different way of searching for particular information about a product is external information source. Customers review opinions and reviews available from nonmarketing-controlled source, such as those which we can read on web forums, blogs or consumer opinion sites, to get a sense of how others view a product. Second form of external information search is marketing-controlled information source, such as mass media advertising. Lancome spends a great amount of money to advertise its products well and to provide reliable information about its product. In addition, Lancome's famous faces like Julia Roberts,Penelope Cruz or Kate Winslet, make Lancome a trusted brand and their products more desirable. 

Another stage of the consumer decision process is the evaluation of alternatives. This stage is where customers evaluate all the advantages and disadvantages of the product one more time before making a purchase. Usually, Lancome's clientele rely on the information made available by the mass media or base their decision on the quality of and information provided by customer service. It looks like Lancome greatly meets its clientele's expectations. According to Forbes magazine, the brand's sales were up 10% in 2012.


Monday, October 13, 2014

Ch. 5 - Developing a Global Vision


Lancome has been on the market since 1935. It began selling its products in about thirty countries in the first six months of the company's existence. The company has been a global brand since it became a subsidiary of L'Oreal Group in 1964. It entered the United States in 1950 and now sell its products in over 160 countries around the world. Its products  are sold at department stores, exclusive beauty stores, duty-free shops and boutiques. Lancome owes its global market growth to country-specific advertisement.

One of Lancome's advertisements that target the
Chinese market.
For example, Lancome developed  the Teint Miracle foundation in their Japanese laboratory with the Japanese consumer in mind. However, it became a global success because woman around the world wanted to have a beautiful skin like the Japanese. Lancome began selling its products in Japan in 1978 and it now has 112 shops, mainly in department stores. But Lancome's real conquest is the China market where it has spread into more than 40 Chinese cities and 18.000 retailers.

However, the company's tremendous success in China is mainly due to the web and by the adaptation to the local culture. Many Chinese customers for instance still do not feel comfortable making their payments online. In order to get around these concerns, Lancome's e-boutique allows clients  to pay for their products at the time of delivery. In addition, the goods are delivered by bike to improve the delivery time even though this method o delivery is incompatible with the Western idea of  luxury brand. Another strategy for enhancing e-market in China was creating the community website Rose Beauty. Rose Beauty not only raises awareness about products among clientele but also gathers information about the needs and desires of customers. The uses Chinese local social networks (Kaixin, Renren, Sina Weibo) to help brand build one of the biggest online community in cosmetics.

Lancome has grown to become one of the largest and recognizable cosmetic brand in the world with sales exceeding 350 million dollars in 2010.




Sunday, October 5, 2014

Ch. 4 - The Marketing Environment

Bienfait multi-vital SPF 30 day cream from Lancome, a brand of the Luxe division of L'Oreal Group, is product highly recommended by many women. Only by reading reviews about it can I understand why it is purchased even by young women in their twenties. The formula of the cream was designed especially for women with visible effects of environmental damage and dehydrated skin. The actual target market of it is the early Y generation and below. Sunscreen, one of the ingredients of the cream, helps prevent sunburn and prevents premature aging of the skin caused by the sun. Although the main purpose of this cream is protection and moisturization, it contains a variety of other beneficial ingredients such as a complex of nourshing vitamins like E, B5 and CG. Women including me always love good moisturizers because it gives a comfortable feeling and makes the skin hydrated and healthy looking. Unlike many facial creams on the market that only moisturize and nourish the skin, Bienfait multi-vital SPF 30 also offers sun protection and so provides all a woman needs for her skin. This combination of ingredients makes it a unique and desirable cosmetic on the market.

There is a large variety of products on the market, but when it comes to picking one for yourself you want the best available product for a good price. For a luxury brand like Lancome, forty six dollars per good quality cream is relatively affordable in the eyes of regular customers wanting good cosmetics. The company provides generous complimentary samples with purchases so that people can get to know Lancome's products and get more for their money.

Like many companies today, Lancome uses social media to increase brand awarness. For Lancome, social media are important because through them, managers can listen to and engage their clients. Lancome relies on web sites such as Lancome.com where user-generated content coexists with product descriptions and where customers can invite their Facebook friends and freely discuss Lancome's products. By combining data from online customer purchases made through Lancome's website and data extracted from their customers' social media profiles (e.g., Facebook), the company gets to know its clients. This process helps them to predict likely future purchases and drive advertizing and rewards campaigns in order to offer clients the right incentives to make those purchases.

Sunday, September 28, 2014

Ch. 3 - Ethics & Social Responsibility


              As I mentioned in my previous post, this year L'Oreal has been recognized for the fourth time by Ethisphere Institute as one of the most ethical companies in the world. For L'Oreal, company behavior is as important as its economic performance or the quality of its products. L'Oreal's code of business ethics applies to all employees of the L'Oreal Group and its subsidiaries. The code of business ethics lays out the rules of good conduct that are expected from L'Oreal employees. Nowadays, many firms join United Nations Global Compact in order to extend their social responsibility aspect. L'Oreal has supported UNGC since 2003 and in September 2013 was selected for inclusion in the United Nation Global Compact 100 – a new global stock index that combines corporate sustainability and baseline financial performance. UNGC challenges businesses to support ten principles regarding human rights, labor, the environment and anti-corruption:
  • Human rights: L'Oreal in particular fight the exploitation of the children in the workplace below 16 years of age.
  • Labor:  L'Oreal respects worker's rights and fights with all kind of discrimination.
  • L'Oreal supports the fight against corruption and publicly states a zero–tolerance policy on corruption.
  • L'Oreal is working continuously to significantly reduce its environmental footprint. For example, in India, one of L'Oreal's factories named Pune Factory, works hard at achieving sustainable production with satisfying results.
  • Reduce water consumption: Between 2005 and 2014, the Pune Factory has reduced its water consumption by 42%.
  • 70% of the electricity used by the factory comes from wind energy.
  • Since 2012, cardboard and paper containers have been replaced with recyclable plastic boxes that last longer.


With respect to social responsibility, L'Oreal also aims to eliminate forest destruction from all its supply chains by 2020 and at the same time empower consumers to make sustainable consumption choices. The program's goal is to benefit both the environment and society.

L'Oreal is also known for its community involvement. L'Oreal, together with the United Nations Educational, Scientific and Cultural Organization, established Award L'Oreal-UNESCO for exceptional women researchers who have contributed significantly to scientific progress. Each laureate is awarded a grant of $100,000. 

For 16 years, L'Oreal has been involved in the beauty industry charity project "Look Good...Feel Better" which was created for women with cancer. The goal of the project is to help these women look better and through looking better lift their spirits so that they can face the illness with greater confidence.





Sunday, September 21, 2014

Ch. 2 - Strategic Planning for Competitive Advantage



L'Oreal is a successful and internationally recognizable beauty company, a leader in skin care, makeup and hair color. L'Oreal has gained its competitive advantage through developing a strong competence which is affected by a variable factors. The first core of its competency is a level of diversification of its product. The company manufactures and markets a range of makeup, perfume and skin care products in over 130 countries, what makes the better brand recognition all over the world, and at the same time gives esteem over the competition. Second, very important aspect for increasing competitive advantage is product innovation. L'Oreal currently employs over 3,200 research stuff in 30 fields and invests each year 3,5% of their revenue for research and new product creation. Moreover, L'Oreal is one of the most ethical companies in the world. It was recognized internationally three times for promoting the highest ethical standards by the Ethisphere Institute for its ethical business practices, social corporate responsibility, fight against corruption and sustainable development.

As a company concerned about the environment, L'Oreal just recently has committed in campaign “Scharing beauty with all” to achieve zero deforestation in all its supply chain by 2020. This is a step towards their bigger goal of manufacturing beauty products while preserving the planet. Next to the Maybelline, Garnier and Yves Saint Laurent Beaute, L'Oreal plans to attract one billion new customers while making a positive impact on the world by 2020.





This year L'Oreal has launched its first marketing campaign to promote its brand manifesto"Beauty for all". Film brings to life its strategy of globalization, but with clear respect for differences in needs, desires, dreams,culture and traditions. It expresses the power of beauty of ordinary people around the world and illustrates the L'Oreal's conviction that beauty is essential.

Saturday, September 13, 2014

Ch. 1 - Overview of Marketing (Brief History and Mission Statement)


L’Oreal, one of the leading fashion and cosmetics manufacturers in the world. In 1907, Eugene Schueller, a French chemist, developed an innovative hair color formula.Two years later, in 1909, Schueller set up a company and named it ‘Societe Francaise de Teintures inoffensives pour Cheveux’. The company manufactured the hair dye in Schueller home and sold it under the brand name Aureole.After manufacturing and selling the cosmetics products in Paris for a few years, Schueller started exporting to other European countries like Holland, Austria, and Italy.



Starting with a capital of 135,000 francs it was transformed into a limited-liability company in 1939 by a merger with Fonciere Driant under the name Societe l’Oreal which as an adaptation of one of the brands ‘L-Aureole’. In 1963, L’Oreal became a publicly traded company. It has transformed from a french company in the early 1900s to a global titan in the 2000s. Its product range included makeup, perfume, and hair and skin care products, which were tailored according to the consumer needs. L'Oreal Group owns many international brands which are divided into five divisions, namely L'Oreal Luxe, consumer products, professional products, active cosmetics and Body Shop. By 2003, the L’Oreal group had entered 130 countries, through its 290 subsidiaries and around a hundred agents. The company is active in three main sectors: cosmetics, dermatology and pharmacy.

L'Oreal believes that everyone aspires to beauty. Our mission is to help men and women around the world realize that aspiration, and express their individual personalities to the full. This is what gives meaning and value to our business, and to the working lives of our employees. We are proud of our work.