L'oreal Case Study

Executive Summary

Global Market Expansion

L’Oreal has experienced much success with global expansion by differentiating their products to better meet the needs of certain markets. They are careful to have their products represent that specific country of origin in which they are marketing to. They place much attention on each stage of its supply chain from start to finish and conduct many internal and external controls to help ensure quality and consistency. They have been able to successfully enter many markets around the world despite heavy regulations in certain countries such as Japan. They have achieved a large portion of the cosmetic market share through mergers and acquisitions they have engaged in. They have even found new outlets to expand into such as airports and spas to help people become more aware of their brand and to assist in introducing new product lines.

Industry Analysis

L’Oreal is the front-runner in the industry of cosmetics and beauty. However, it is just one of many companies in a multi-trillion dollar worldwide industry. Not only is this a thriving industry in the United States, it is a prosperous industry throughout Asia and Europe. Companies such as Shiseido, headquarter in Japan, and Estee Lauder continue to claim a part of the market share that L’Oreal is after. With the cosmetics industry being so popular across the globe and customers continuing to search for the fountain of youth, this is a thriving industry that will continue to prosper into the long distant future.

Competitors Analysis

L’Oreal has several different competitors on several different levels. The three competitors discussed include Mary Kay, Unilever, and Colgate-Palmolive. Mary Kay heavily competes in the cosmetics sector. Their unique and somewhat old fashioned style of product sales has proven very successful for them as they are continually gaining and keeping customers. Unilever primarily competes in the fragrance and shampoo areas that L’Oreal also has products available. Unilever is a global brand and has strong recognition in several regions. Colgate-Palmolive has a strong line of deodorants and body washes that directly compete with some of L’Oreal’s products. Colgate recently introduced a new shampoo line in Mexico, and if it is proven successful, will expand into different regions of the globe.

Recommendations

There are many recommendations for a company like L’Oreal. It could create a site online where customers can upload their own picture and then color is with products from L’Oreal, and it can increase sales online by offering discounts and adding more click-ads. They should also market towards average women of various sizes, instead of just gorgeous models. Starting a fashion magazine to feature the companies’