Case Review - L'Oreal Company

Presented By:Parag Shah: F-04Shruti Poddar: HR-24

Evolution of L’Oreal Co.

• 1907 - Eugéne Schueller, founded L’Oreal by

formulating, manufacturing & selling the first hair

dye to Parisians.

• 1910 - Schueller was a part of the editorial team for

a famous fashion and cosmetics magazine, and he

recommended the concept of patch tests &

convinced Paris hairstylists to use his products.

• 1912 – Started a hair – colouring school at Rue du

Lowre in Paris. Schueller himself trained the

students at the school for maintaining the

standard of the company.

• 1920 – After World War II, a new age came into

existence. Austria, Italy, and Netherlands were the

countries which had high demand of L’Oreal high

dyes.

• 1934 - Eugene invented the first mass market of

soap less shampoo and then L’Oreal in the country

of Europe was soon recognized as the leader in

body care and hair colouring products. L’Oreal went to United States and the seemed to

change.

• 1960 – L’Oreal consumed companies like Garnier,

Lancome Paris, and Biotherm.

• 1970 – L’Oreal consumed Maybelline which

worked miracles for L’Oreal.

• 1980 – one of the biggest acquisition Ralph Lauren

Fragrances and Helena Rubinstein which was a

cosmetic maker that distributed internationally.

• 1995 - L’Oreal made its biggest acquisition by

purchasing Redken which allowed them to

reassess the whole hair care division. Redken was

well known for its extensive network of salon

educators.

• 2000 - The last acquisition was purchase of Kiehl’s.

They are a New York based specialty store that sells

high end cosmetics which gives L’Oreal a new

advantage into another market of the luxury

division with the goal of selling in higher end

stores.

Expansion of L’Oreal Co.

• Initial presence in Paris

• Expanded in France

• Researched about other countries

• They made the products available in other countries

• L’Oreal expanded its business from hair care to other

cosmetics

• Bad response in US

• Researched more about US

• Acquired Kiehl's a speciality store

• Took initiative to spread business all over

Limit's to Globalize for L’Oreal Co.

• Beauty through just American and French

consumers

• Don’t want to focus on local brands

• Low economic countries

• Geographic issues

Kiehl’s Co.

• New York based

• Word of Mouth

• High end speciality products

• Difficult to replicate

• Booming demand for the products

• L’Oreal’s need to globalize – acquired Kiehl’s

Strategy that can be used

• Exporting

• Licensing

• Franchising

• Foreign direct investment

• Wholly owned subsidiary

• Piggybacking

• Acquisition

• Joint venture

Strategy used by L’Oreal Co.

• Acquisition

E.g.: Maybelline

• Joint Venture

E.g.: Kiehl’s

Conclusion

• Research & Development

• Cost effective products

• Innovative customer services

• Customers all around the globe shall be considered

• Far away blooming journey