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.