Ch -7 Business Marketing

The culture and development of L'Oreal are based on creativity and  sense of beauty. The marketing teams live out these values on an everyday basis, a definite strength of the group. L'Oreal has creativity in its DNA. The marketing teams are at the heart of the process, at the interface between all the group’s units of business. Their mission is to make consumers the world over aware of products designed to meet their needs and to be one step ahead of trends in order to transform them into sources of beauty and well-being. They are structured into two main tracks within the group: operational marketing and marketing development.Joining the multicultural marketing teams means not only participating in the development and promotion of products worldwide but also working in an ultra-competitive sector that changes rapidly, a sector that sets the trends of the future. L'Oreal brands are aimed at a wide range of consumers and lifestyles, from mass distribution channels and modern beauty stores, to professional salons, and all the way to luxury boutiques in various countries. They continue to change the world’s market where the competition is very stiff and demanding. Lastly, the group is constantly marketing new products and frequently renovating its brands.

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Ch - 11 Developing and Managing Products

 For L'Oreal being responsible means controlling the manufacture of its products. By choosing a largely integrated industrial model, the group does not only guarantee the overall quality of its products; it can also be certain that its ethical, environmental and corporate principles are complied with. The group’s industrial production is organised regionally with 40 plants established on all continents. The industrial organisation is increasingly local and closer to the markets. In 2010 L'Oreal opened a plant in Kaluga, Russia and in 2011 launched three building sites in Mexico, Indonesia and Egypt.

The main mission of the manufacturing teams is to provide the business divisions, which are their internal customers, with high-quality products within the required timelines and at the agreed price under the best possible conditions of safety. To support the group’s strategy of international expansion they are also responsible for developing, managing and optimising the group’s industrial resources.

Ch. 8 - Segmenting and Targeting Markets

L'Oreal, the world's largest cosmetics and beauty company, was founded in 1907 by the French chemist, Eugene Sculler. After a little over a century of steady growth, L'Oreal has jumped from being a small family business to become the world’s leader in the cosmetics industry. Today, the L'Oreal group has regions in more than 150 countries in the world that are home to 283 branches, more than 100 agents, 50,491 employees, 42 factories, and more than 500 high-quality and popular brands of cosmetics. Their "global or nothing" strategy allows L'Oreal to take market segmenting even further by custom developing and marketing products to meet the specific demands of any given country or region.Loreal's Segmenting and Targeting Markets

    In order to clarify different product positioning in Asia, L'Oreal decided to move from “the open-shelf brand” in Europe up to “the top international brand” in Asia. In Asian countries, L'Oréal set up their counters in upscale department stores according to the Asia specific marketing channel strategy. However, this “accessible luxury brand” strategy did not meet the levels of success they anticipated. The reason for this is that the image of the texture or packaging of their products failed to reflect the luxury image that are so important to marketing in Asia. They failed to understand the significance of the fact that texture and packaging in Asia is more delicate than the required standard in Europe. L'Oréal must prove that the quality of their product shows "significant improvement" if they are to obtain market recognition while moving up their prices in the Asian markets.

 In 2003, L'Oréal created a new line of teeth whitening products in order to open up Japanese and Asian markets. Unlike those products made for the U.S. and Europe, the flavor of the creams and gels sold in Asia have a more oily texture and a more intense flavor. In order to meet the expectations of consumers in Asia, they are also more delicately designed and packaged. 

Ch. 8 - Segmenting and Targeting Markets

In a world that is constantly changing, Communication teams play a key role. Their mission is to increase awareness, ensure long-term reputation and build up the image of the L’Oréal group and its brands.

Nowadays a brand or a group’s reputation accounts for 75% of its value and persuasion and influence are becoming ever-more decisive in buying. The challenge for brands is therefore to have effective communications that will make them stand out in a saturated environment.

Moreover, with the ever-greater number of information sources and channels, media relations, public relations and special events are now only one aspect of working in communication for L’Oréal. The trend is towards multi-channel strategies that include communication 2.0/social media and multi-targets (journalists, bloggers, influencers, celebrities, consumers, the scientific community, employees and other influencers) who use the entire range of communications tools, partnerships, events, sponsorship, media relations, CSR, crisis management, public affairs, etc. to increase awareness of the group and its brands.

Ch. 10- Product Concepts

                                   
                            

For L’Oréal, science and beauty products are a combination of expertise and sensitivity. The fields of research and innovation are not purely creative but also based on an understanding of customer needs and a view of the cosmetics market now and in the future.

L’Oréal’s research and innovation teams constitute a multicultural community that includes a large number of disciplines (over thirty specializations) in every branch of science and this trend is set to grow in the future. These teams are driven by a shared enthusiasm: inventing and perfecting innovative high-performing cosmetics, contributing to the well-being of men and women all over the world. They achieve this by forever exceeding the boundaries of life- and materials-sciences without ever losing sight of what their customers want.

L’Oréal’s Research and Innovation is divided into 4 main branches: advanced research(developing knowledge in the major scientific fields related to L’Oréal’s business and the creation of predictive evaluation models), applied research (creating formulae and developing new product concepts), development (developing new formulae for providing the brands with safe, innovatory products) and support functions (regulatory affairs, patents, customer surveys, etc.).

ADVANCED RESEARCH

Advanced Research teams create and develop performing and sustainable actives. By feeding the group métiers with new products, their work allows L’Oréal to take up the challenges of innovation and sustainable development.

L’Oréal researchers are looking for:

• Improving their knowledge in many scientific fields (biology, biotechnology, biophysics, chemistry, physics, physical chemistry, modeling…)
• Being open to the world through what we call “open innovation”
• Creating from upstream new models for evaluation of the actives safety and performance, by using very varied tools and methods (from numeric to reconstructed skin)

APPLIED RESEARCH

L’Oréal Applied Research teams create the prototype formulas of the actives stemmed from the Advanced Research. They also select the formulas that lead to new cosmetic properties or improve those already existing. Responsible for the right technology transfer with the Advanced Research, they study the behavior of the ingredients stemmed from the “local” research or suggested by the group’s suppliers, by approaching them as “product concepts”. After a complete evaluation, they can then hand over to the development teams the job.

DEVELOPMENT

Development teams work out new formulas and make sure that the best performing products will be available for the markets in the best safety conditions for both consumers and the environment. They provide the brands with a constant stream of innovative products and make for them recommendations for use based on the regulatory specificities of the different countries where the group is established.

SUPPORT FUNCTIONS

They include:

• Analytical evaluation, safety and global efficiency evaluation of raw materials and formulas
• Knowledge of the different regulations for the product validation and communication and the establishment of regulatory records.
• Industrial protection of the discoveries made within the group
• Resources management (projects, teams, budgets…)
• Consumer insights

L'Oreal Ch. 17- Personal Selling and Sales Management

L’Oréal’s expertise in sales and distribution is 
recognised throughout the world. The sales teams are enthusiastic, open-minded and play a key part in the 
growth and success of the group’s brands.

Conquering new international markets is currently at the heart of L’Oréal’s ambitions. The group is a market leader present in all the distribution circuits and possesses unique expertise in terms of channels and retail outlets. Joining L’Oréal sales teams means using your energy and persuasive capacities to serve customer satisfaction and discovering a working environment that offers an abundance of career routes and opportunities.

Sales covers several vocations. It requires a certain customer expertise in order to represent L’Oréal to distributors, develop customer plans and manage negotiations with our partners. It includes a strategic aspect, drawing up brand strategies and sales strategies based on the results of consumer and customer surveys. Sales is also a function in which leadership is essential to encourage excellence in sales teams, establish the best possible interaction with the other group departments and develop employee talents. Lastly it is oriented towards performance by achieving sales objectives, developing market share and reinforcing the group’s brand image in the different distribution channels.

Ch. 16 - Advertising, Public Relations and Sales Promotion

L'Oreal is the seventh biggest U.S. advertiser, with more than $2.3 billion in spending according to the Ad Age Datacenter. Interpublic's  UMcurrently handles TV and print buying.

The move would appear to open an opportunity for WPP to significantly expand what has long been a relatively small business with the third largest global advertiser. WPP's GroupM has been making gains with L'Oreal Group globally on the media side, with the holding company having already picked up business with the beauty giant in the Nordic region, U.K., Ireland, Southeast Asia, Canada, China, Germany and Latin America in recent years.

Prior to joining L'Oreal last October, Ms. Karp McHugh had been with Colgate since 2011 and had a 20-year career at WPP agencies, most recently GroupM, where she led the Unilever account at Mindshare and helped develop a training program for that agency and sibling Maxus At Colgate, she worked with WPP agencies, which during her watch were merged into the Colgate-specific Red fuze combining people from Y&R, Wunderman, VML MEC and GHG

Ch. 14- Marketing Channels and Retailing -

         

To ensure its development, L’Oréal relies on global Research and Innovation, a unique portfolio of brands organized by distribution channel, and integrated industrial production.

L’Oréal made the decision to integrate its production facility. Established around the world, its 40 factories produce 87% of the units of cosmetic products sold.

A guarantee of quality and traceability, this model makes it possible to reduce risks and optimize the industrial tool. A single unit, the Operations Division, steers worldwide production and product distribution. It unites 7 lines of business − sourcing, production, quality, environment-health & safety, supply chain, packaging & development, and real estate − and it oversees the whole production chain, from purchasing raw materials to product delivery.

To become more responsive and adapt to the specifics of local markets, the industrial tool is spread out over five major geographical zones. This proximity reduces the distance that separates consumers from the factories and ensures them access to products at the best possible price. The group also bases its industrial success on its exacting criteria in the selection of suppliers with whom it creates long-term partnerships and joint ventures for innovation.

L’Oréal is richly endowed with a portfolio of international brands that is unique in the world and that covers all the lines of cosmetics: hair care, coloring, skin care, make-up and perfume. Very complementary, these brands are managed within the group by divisions that each have expertise in their own distribution channel. This organization is one of L’Oréal's major strengths. It makes it possible to respond to the every consumer's expectations according to his or her habits and lifestyle but also to adapt to local distribution conditions, anywhere in the world.

• The Consumer Products Division offers the best in cosmetics innovation to the greatest number of people on every continent. Its brands are available in mass-market channels (hypermarkets, supermarkets, drugstores and traditional stores). The division is the spearhead of the group’s quest to win over a further billion consumers. L’Oréal Paris - Garnier - Maybelline New York - Softsheen-Carson - Essie
• L'Oreal Luxel  offers both men and women throughout the world an array of prestigious and modern international brands with a unique heritage. The brands of L’Oréal Luxe strive to promote the different specialities of luxury beauty: skincare, make-up and fragrances.
  They also set out to offer high-quality products through a selective distribution channel, and provide excellent service that respects the diversity of its consumers. Lancôme - Giorgio Armani - Yves Saint Laurent - Biotherm - Kiehl’s - Ralph Lauren - Shu Uemura -Cacharel - Helena Rubinstein - Clarisonic - Diesel - Viktor & Rolf - Yue Sai - Maison Martin Margiela - Urban Decay -Gyy Laroche-Carita-Active Cometics Division's mission is to help everyone improve the quality and health of their skin, whether they are affected by sensitive skin or dermatological conditions, in all health care channels worldwide: pharmacies, beauty and health retailers, drugstores and medi-spas. Thanks to its highly complementary brands, and its close links with health professionals, dermatologists, paediatricians and doctors practising aesthetic medicine, the division is world number one in dermocosmetics(1).
  (1) Source: Panels and L’Oréal 2013 estimates. Vichy - La Roche Posay - SkinCeuticals- Innéov - Roger&Gallet - Sanoflore
•  The body shop, true to its pioneering spirit, combines innovation, sensory experience and performance, while maintaining their values, in particular with regard to fair trade and environmental protection. In fact, it is the first brand to have introduced fair trade into the Beauty industry. Its products are distributed mainly through a network of exclusive boutiques.L’Oréal made the decision to integrate its production facility. Established around the world, its 40 factories produce 87% of the units of cosmetic products sold.
  A guarantee of quality and traceability, this model makes it possible to reduce risks and optimize the industrial tool. A single unit, the Operations Division, steers worldwide production and product distribution. It unites 7 lines of business − sourcing, production, quality, environment-health & safety, supply chain, packaging & development, and real estate − and it oversees the whole production chain, from purchasing raw materials to product delivery.
  To become more responsive and adapt to the specifics of local markets, the industrial tool is spread out over five major geographical zones. This proximity reduces the distance that separates consumers from the factories and ensures them access to products at the best possible price. The group also bases its industrial success on its exacting criteria in the selection of suppliers with whom it creates long-term partnerships and joint ventures for innovation.

Ch. 7. - Business Marketing

  The culture and development of L'Oreal are based on creativity and  sense of beauty. The marketing teams live out these values on an everyday basis, a definite strength of the group. L’Oréal has creativity in its DNA. The marketing teams are at the heart of the process, at the interface between all the group’s units of business. Their mission is to make consumers the world over aware of products designed to meet their needs and to be one step ahead of trends in order to transform them into sources of beauty and well-being. They are structured into two main tracks within the group: operational marketing and marketing development.Joining the multicultural marketing teams means not only participating in the development and promotion of products worldwide but also working in an ultra-competitive sector that changes rapidly, a sector that sets the trends of the future. L’Oréal brands are aimed at a wide range of consumers and lifestyles, from mass distribution channels and modern beauty stores, to professional salons, and all the way to luxury boutiques in various countries. They continue to change the world’s market where the competition is very stiff and demanding. Lastly, the group is constantly marketing new products and frequently renovating its brands.

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Ch. 6 - Consumer Decision Making

     Consume behavior strongly affect the consumer buying process, hence marketers always to know what is actually happening inside customer's mind in order to provide additional values of products to users to satisfy their needs and wants. However,it is mainly influenced by three key factors-cultural tractors, social factors and psychological factors - that are vital conditions for every   
marketing strategy to be considered before launching in the market. In cosmetic industry, although L'Oreal is the leader of the market, it is necessarily for the company to concern these factors in its marketing plan, so as to gain the market shares and remain its above rivals such as P&G and Unilever. The report will try to find out the role of consumer behavior in marketing strategy planning and discover the process of how L'Oreal adapt the three factors to their marketing plans order to achieve success.
The term consumer behavior is defined as "the study of how individuals, groups and  organisations select, buy, use and dispose of goods, ideas or experiences to satisfy their needs and wants "(Kotler & Keller , 2009:150). In other words, the study focuses on how individuals spending their available resources-time, money and effort - to create a final decision in buying process (Schiffman, Hansen & Kanuk, 2008).
Since consumer behaviour has huge effects on marketing planning, large companies like L'Oréal always consider carefully this psychological term before a new marketing campaign is launched. L'Oréal is the world's largest cosmetic and beauty company, which founded 1909 by Eugene Schuller. the company has operations in over 130 countries with more than 60,850 employees and got many awards for the world top 20 respected company in 2005, the international corporate diversity award in 2006, the world's most ethical companies in 2007 and 2010 and top 100 sustainable companies in the world in 2011.

Ch. 5- Developing a Global Vision

    

         

                                                         

The time has come to ACCELERATE OUR PROGRESSES in Sustainable Develoment for the Entire L'Oreal Group and Along the Full Length of our Value Chain

They are part of a transformation process begun at L'Oreal several years ago.We fist redifined our mission:beauty for all.To accomplish this mission ,We chase a new strategy that we call universalisation, which is globalitasion that respect differences. 
To impliment this strategy, we set an ambitios target: to attract and win the loyalty of a billion new consumer.However, more consumer,more growth, also means more responsibility.
So we want to reduce the impact of our activity on the planet while increasing our positive socio-economic impact on the lives of communities aroun us. With the commitmens we are making today,we are continuing our transition towards a new development model,which is constantly becoming more responsible. And we are clearly placing our non-financial challenges at the same level as our financial targets, and so expressing uour vision of the global perfomance of our company.

Ch. 4- The Marketing Environment

The Consumer Product Division recorded growth of +2.0%  like-for-like and - 42% based on reported figures. Well- positioned to benefit from the gradual improvement in European markets, the Division was nevertheless held back by an American mass market   that has been slow to pick up,and to a certain extent, by slower growth of the market in the emerging countries

    - Recent launches which have provided a strong boost in hair where the Division is continuing to win market share have been less effective in skincare the first part of the year. The division is maintaining its very good momentum in hair care, particularly in China, in Europe with the launches of Fibralogy  by L'Oreal Paris and Ultimate Blends by Garnier Olia continues. In make -up, L'Oreal Paris is expanding well, and is innovating with Butterfly and Miss Manga mascaras,
  - Amongst the geographic  Zones, North America has been held back by a sluggish market and high comparison base. The Division has posted solid growth in Western Europe and Brazil. The Division continues to be dynamic in Southern Asia, Eastern Europe and Africa, Middle East, where it is gaining market share.

CH. 3 - Ethics and Social Responsibility

                 

-The Luxury Division of L'Oreal Group-

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 product. L'oreal's code of business ethics applies to all employees of the L'Oreal Group and its subsidiaries.

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 consumer to make sustainable consumption chooses. The program's goal is to benefit both the environment and society.

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

L'orealCh. 2 Strategic Planning for Competitive Advanta

      

L’Oréal's strategic plan to maintain a competitive edge is through research and innovation to produce a sustainable future. The source of their competitive edge is the energy and ideas of their people and their strength lies in what they value: Customers, Quality, Integrity, Performance and Environment. L’Oréal believes that using these integrative strategies will allow them to innovate better, faster and earlier. The entire life cycle of each product adopts the rules of Eco design which include select ingredients, testing small quantities to reduce waste, re-using by products,manufacturing processes requiring low levels of energy and toxic solvents and recyclable packaging. L’Oréal is committed to increasing the use of renewable raw material in it's products. In 2010 40% of material in their portfolio were plant based, 26% comply with green technology and by the close of 2011 80% of raw materials with biodiversity issues will be addressed. Per finished product their goal is to cut greenhouse emissions in half by 2015.    

         

Parallel to keeping up with customer demands to create Eco friendly products, L’Oréal is opening new frontiers by creating products and ingredients that meet the needs of their globally diverse markets. L’Oréal stays ahead of the game by consistently staying true to their mantra of advanced research and innovation. Research teams are continuously conducting studies of local populations. An outsourced social science research centre is studying the psychological and socio-cultural processes at work in cosmetic use and personal hygiene routines. L’Oréal's new ingredient-development programs are part of a new approach from design to formulation. This work has led to the creation of the nutria-cosmetic line, Innovate Hair Health and L’Oréal's new patent skin-repair substance, Rhapsodize giving them a competitive edge.

Ch. 1- An Overview of Marketing

At L’Oréal beauty is everywhere. But Marketing is not merely a question of creativity, it is also directly linked to business and performance. Working in the Marketing team of a L’Oréal brand means accepting responsibility in a country for the results of a category of products. In each country where the group’s products are marketed there is a head of marketing who is responsible for all the products, ranges and brands at a national level.