Question

Discuss the main success factors of the global brand l'oreal

. What is the marketing strategy, competitors and competitive advantage?

Answer 1

L’Oreal a cosmetic giant operating in over 130 countries worldwide. Main success factors of global brand L'Oreal are enclosed below:

• The continuous increase in online beauty spending
• The expansion of social networks
• Consumer interest in new, different and premium products
• The acceleration of urbanisation worldwide
• The increase in the number of senior citizens worldwide
• The growth of the upper middle classes

The success of Brand L’Oreal lies in the fact that the company succeeded in reaching out to the customers of different countries of the world, across different income ranges and cultural patterns, giving them the appropriate product they are worthy of. The area of expertise of L’Oreal being that it succeeded almost in every country that it entered. The strategies of L’Oreal was varied enough to help it and stop itself from restricting itself in a single country. L’Oreal sold its product on the basis of customer demand and country want rather than keeping the product identical across the globe. It built ample number of brands or mammoth brands entrenched to the restricted culture and which appealed to a variety of segment of the universal market instead of generalising the brand and edible in innumerable culture. L’Oreal went on to being a local product in every international market. The brand extension of L’Oreal also came in the same sector or the same segment of market. L’Oreal believed in growing its expertise in the segment it is conscious of rather than going into a completely new sector of market

It has segmented the market based on the demographic factors such as L’Oreal LUXE for upper middle and upper-class customers who wear beauty as their identification, Dark & Lovely for African women’s, professional products for customers offerings/ enhancing the looks of individual customers.

For targeting differently segmented of customers with its 34 brands in several product categories, it has devised differentiation strategy to target middle, upper middle and upper-income class customers majority of who are working professionals and are those who want to flaunt their personas.

The brand has positioned itself as most ethical cosmetics and beauty Care Company focusing on Universalisation i.e respecting the differences in cultures, desires, and aspirations of the internal & external stakeholders.

Competitive advantage –

1.Diversity in the company:

The Company has always believed in diversity and Universalisation operating with 34 brands with the workforce of 89300 from 158 nationalities supporting the company in more than 150 countries globally.

2. Strong Brand Portfolio:

The Company has the extensive brand portfolio like consumer products: Loreal Paris, Garnier, Maybelline, NYX, Nicely, Dark & Lovely, Essie, & MG.L’Oréal LUXE: Lancome, Yves Saint Laurent, Giorgio Armani, Kiehl’s, Urban decay, Biotherm, it cosmetics, Ralph Lauren, Diesel, etc. Professional products: L’Oréal professional, Redken, Matrix, Decleor, Pureology and Kerastase.