Loreal Global Brand Local Knowledge

L’oreal: Global Brand, Local Knowledge

L’Oreal is a classic example of catering to the needs of customer and building its global brand on it. They believe in selling “Science of beauty in a jar”, hence it spent 3.5% of its revenue generated in R&D sector which is the highest among all.

They invested in understanding its local customers and innovated to create products tailored as per cultural diversity, ethnic groups, ageing population and growing interest of the markets in new ideas.

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L’oreal made a brand name by focusing into five major sectors: Hair Colour, Hair care, Skin care, Colour cosmetics & fragrances. They were a French company but they went global by targeting different regions and diverse customer base.  They invested in research and studied different beauty trends across the world and delivered custom made products specific to the region and customer requirements, as they understood that people are different and they have their own specific needs. It was the first company to venture into male grooming products.  They are organized into three major groups: Cosmetics, The Body shop and the dermatology.  

L’oreal is a global brand as because of its innovative Marketing strategies. There strategy was to provide right product to the right target audience. They did not follow the clichéd way of marketing the professional hair range but in turn they provided training to the hairdressers 80,000 and as a result 36000 salons adopted their products in just few months. They acquired Maybelline, when it lost all its focus and then they got a dead company up and running towards profit. Through Maybelline they targeted the working women and they did further branding for them. They ventured into Chinese market as well by acquiring Mininurse (top skincare brand of china) and Yue-Sai (Makeup brand). Through this they started building up their market in Asia. It helped them increase their market shares by securing a manufacturing plant in Pune, India. They also targeted ethnic groups and diversified their approach in the market. They had a challenge to keep all the different brands in the same basket and still maintain differentiation among them. They created low range, mid range and high range products catering to different income groups of the customers.