L'oreal Global Brand Local Knowledge Pdf

L'Oréal, the world's largest cosmetics and beauty company, was founded in 1907 by the French chemist, Eugene Schueller. After a little over a century of steady growth, L'Oréal has jumped from being a small family business to become the world’s leader in the cosmetics industry. Today, the L'Oréal 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'Oréal to take market segmenting even further by custom developing and marketing products to meet the specific demands of any given country or region.

The cases helps us understand how the company was able to achieve this through different tools they have used. The company has acquired many smaller brands and competitors Maybelline being one of the most notable of the acquisitions done by them. Other companies include UNISA, Jade etc.

When it comes to market segmentation they have brilliantly divided the market and has been able to fully understand the customer needs and wants. These needs vary from one region to another and hence the company has set research institute which helps them develop products based upon the specific consumer needs. At the same time it is important that the company taps into newer markets so they are able to sell the existing range of products.

The company has hence been able to achieve brand diversity and has region specific products. The company follows different strategies for each brand for example Garnier is available in all departmental stores as the brand is aimed for the mass market but L’Oreal on the other hand is a high end  brand so it is sold from their own retail stores. The philosophy of Masstige which means the products are a prestige for the masses is also innovative as it helps the company tap a bigger market and enables them charge a higher price.