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... questions, we don't compromise this rule. We acquire only brands that are already global or can become global, or local brands that will be merged with existing global brands. (There are) no exceptions. Moreover, all of our brand strategies and product launches are conceived to be truly global. The brand strategy is absolutely identical everywhere in the world. It is a rule.
And the products are created to be global, (which means) one name, one concept, one formula, one packaging, and one communication worldwide. " Global Image: LOreal is the leading cosmetic brand in the world, there is no doubt about that. The company believes in a global or nothing strategy. The global image it has right now is of luxury; products that arent an absolute necessity but are needed in a way to make women feel beautiful and which woman doesnt want to feel beautiful? The tagline, Because youre worth it! makes every woman feel that it is absolutely worth it to spend money on herself. Products: Loreal's products are about femininity and beauty: Cosmetics, skin care, hair care, hair dyes, body care, and more recently it launched its first mens skin care line.
CEO Jean-Paul Agon says the company's "unique expertise of beauty" exists because "we know beauty very well, we believe in beauty, and we also think that beauty is different from any other industry. " Since L'Oreal was founded in 1907, the company has concentrated only on the development, manufacturing, and distribution of beauty products, Agon noted. "We believe that beauty has always played an important role in people's lives... We believe that by enhancing the well-being, the satisfaction and the self-esteem of people, we help them have a better and happier life. Agon emphasized, We specialize in the "science of beauty. This may sound strange to you, because when you think of science you may think of industries like computers, aerospace, drugs, etc. It is also true that for some people, beauty is not something serious; it is more like 'hope in a jar, ' as Charles Revlon, the founder of Revlon said 50 years ago. At L'Oreal, we believe exactly the opposite.
We believe that beauty is 'science in a jar. ' We believe that to be successful in beauty it is all about science and technology, because we believe in quality. " Sales Promotions: The advantage that LOreal has is that it targets its products to its different geographical regions. The products are promoted globally, and also, a clever marketing strategy is utilized: localization of its products. For example, in India which is another huge market for them they market the cosmetic products best suited for Indian skin tones, and have Indian models advertising it. Employing women who are internationally famous and on career highs seem to become LOreal spokeswomen soon after reaching pinnacles of fame, and then reach further all-time career highs when they become they become the face of LOreal. Some of the faces of LOreal include: Jennifer Lopez, Jennifer Aniston, Penelope Cruz, Andie McDowell in the primarily North American market, Aishwarya Rai, a well-known Indian actress in the Indian market, and Claudia Schiffer in the Western European market. And when it comes to marketing beauty, Agon insisted, the process is unique. "Beauty is not like other fast-moving consumer goods categories: food, detergents, paper products, etc.
Beauty is not about just responding to consumer needs. It is about transforming dreams into reality. It is about creating and inventing satisfactions, emotions, pleasures, well-being, self-esteem and ultimately moments and reasons for happiness. Beauty is about creating products that people will want and desire, not just need. " Agon said it is critical to develop brands that have strong emotional connections with consumers. "I personally believe that marketing for beauty is an art.
It goes beyond the usual and rational marketing. The marketing we do at L'Oreal is a unique combination of intelligence and emotion, reasoning and intuition, rigor and sensitivity, details and visions, dreams and reality. LOreal believes that innovation is absolutely critical. They employ the best research and development to win the battle with technology. If consumers are ready to switch for better quality, we have to be able to permanently innovate, to constantly invent products that are new, different and better and that consumers.
Agon noted that L'Oreal was founded by a scientist named Eugene Schueller who invented the first modern hair dyes. Today, the company employs nearly 3, 000 scientists in 10 research centers in Europe, Japan and the United State, invests 3 % of net sales in R&D, and registers more than 500 patents a year - "more than all of our competitors. Our objective is simple: We want to dominate the technology battle to increase our leadership. This is also why we manufacture 95 % of our products in our own plants in order to perfectly control their quality and insure the confidentiality of our formulas. " Distribution: Loreal's distribution network is very clear-cut: Inside each distribution channel, the brands are positioned according to a segmentation based on price and image positioning.
LOreal products are sold in stores and places where the common people go to, not only in high end cosmetic counters at department stores. They are found in all distribution channels, from hair salons and perfumeries to hyper- and supermarkets, health / beauty outlets, pharmacies and direct mail. The products are sold in all national drugstores, and also at local Walmart and Target stores. Pricing: Although a luxury brand, it is easily available and affordable for almost every income level.
Since it is available everywhere, the chain prides itself on being affordable yet top quality, simply Because youre worth it! For example, a tube of Clinique mascara costs USD$ 14. 00. An exact same tube of LOreal mascara costs USD$ 5. 99. The affordability is a key component in making LOreal the giant global success it is today. Segments Targeted: LOreal targets the same segment in all countries, however, it is a giant segment!
It is targeting to women, from the ages of 18 to 60. Unlike its rival Revlon, which targets to older women, between the ages of 25 - 60, Loreal's products are created for a wide age range. Only after it was met with enormous success targeting women with its cosmetics and skin and hair products, LOreal started creating products for men and targeted approximately the same age range for men as well. All income levels can afford LOreal as well, but it is targeted more towards the lower, middle and upper-middle class that purchase LOreal products. Organization: The headquarters of LOreal are in Paris, France, but they have branches and offices in most of the major countries they market to, and who share proximity to the rest of the countries. For example, for the North American market, LOreal has offices in the major cities New York, Toronto, Vancouver, Chicago, and Los Angeles.
For the African market, there is a major office in South Africa. For the East Asian market, there are branches in Tokyo and Shanghai. These branches distribute the products to the countries that do not have the offices. They are buying outlets for the products. Pros and Cons of the Strategy: So far, LOreal has had no problems at all in any single aspect regarding its marketing strategy, it has proven to be extremely successful, given the ever-increasing number of sales figures and mergers that the company performs every year! REFERENCES: web - 36 k web 26 /b 3635016.
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Research essay sample on Marketing Strategy Skin Care
