NEED/ WANT/ DEMAND

Need: It is state of deprivation of some basic satisfaction.e.g. - cosmetic product

Want: Desire for specific satisfier of need.e.g. - Indians - wants clear skinAmericans - wants healthy hair

Demand: Want for a specific product backed up by ability and willingness to buy.e.g. - Need – cosmetic product

Want – hair shampoo+conditioner ……but able to get only shampooTherefore, demand is for shampoo

MARKETING MANAGMENT

Marketers cannot create needs. Needs preexists. Marketers can influence wants. This is done in combination with societal influencers.Demand influenced by making product-

APPROPRIATATTRACTIVE APPROACHABLE/AFFORDABLE AVAILABLE EASILY

To target consumers (4 P’s) – Product/ Promotion/ Price/ Place

PRODUCTS- GOODS/ SERVICES/ PLACE

Product is anything that can satisfy need/ want.Product component- 1. Physical Good.E.g. Face cream, shampoo, hair oil etc

Physical Good – cosmetic material Along with products loreal also have their saloons/parlour

Hence, in marketing, focus is on providing/ satisfying service rather than providing only products.

VALUE/ COST/ SATISFACTION

Decision for purchase made based on value/ cost satisfaction delivered by product/ offering.

Product fulfills/ satisfies Need/ Want.

Value is products capacity to satisfy needs/ wants as per consumer’s perception or estimation.

Each product would have a cost/ price elements attached to it.

MARKETING MANAGMENT

Need – beautyMethod/ Products- Satisfaction – Estimated by the result or its effect

VALUE- Products capacity to satisfy.COST- Price of each product.

EXCHANGE/ TRANSACTION

To satisfy need/ want, people may obtain the product through- Self Production- By force or coercion- Begging- Exchange

EXCHANGE: – The act/ process of obtaining a desired product from someone by offering something in return. For exchange potential to exist, the following conditions must be fulfilled.TRANSACTION: – Event that happens at the end of an exchange. Exchange is a process towards an agreement. When agreement is reached, we say a transaction has taken place.Proof of transaction is BILL/ INVOICE.

Monetary Transaction- money is paid for the product

MARKETING MANAGMENT

Type Société Anonyme

Industry Personal care

Founded 1909

Founder(s) Eugène Schueller

Headquarters Clichy, Hauts-de-Seine,France

Area served Worldwide

Key people Jean-Paul Agon (Chairman and CEO), Liliane

Bettencourt (Non-executive director and

major shareholder) Natalia Streignard

Products Cosmetics and beautyproducts

L'OREAL - BUSINESS POLICY AND STRATEGY

27 GLOBAL BRANDS

130 COUNTRIES

68 900 EMPLOYEES

613 PATENTS FILED IN 2011.

INTRODUCTION

L’Oreal group, founded in 1909, by Eugène Schueller, a

MARKETING MANAGMENT

young French chemist today is the world's largest cosmetics and Beauty Company. Headquartered in Paris, and by now the company is one of the leaders in the beauty market while providing a wide variety of products for each segment of its market tailored to meet expectations of its customers.

L’Oréal does and has always have believed in the strategy on innovation and diversification. Due to the products’ uniqueness, L’Oréal’s product became well-known and popular among all ethnic groups, not depending on gender.

MISSION

The company’s mission is to promote an approach to beauty that is fun, affordable, fulfilling, genuine and generous while meeting all stakeholders’ expectations by providing a portfolio of deeply diversified range of products. (L’Oréal Group 2007)

VALUES

Striving For Excellence: L’Oréal is trying to enchant the brand portfolio with continuously innovating products while meeting all standards set for quality and safety.Passion for adventure: their expertise drives their passion for new discoveries andinnovation in cosmetics. Enrichment through diversity: understanding and valuing each individual is an essential part of their corporate culture. Their staff members come from many different backgrounds and work together to offer a full range of products through varied distribution channels. Valuing individual talent: they are dedicated to enhancing the well-being of their consumers; they also ensure that each employee has the opportunity to develop his or her potential through personal and

MARKETING MANAGMENT

professional growth.Leading innovation in beauty: research, sensitivity to consumer needs, know-how and expertise are as essential as intuition. Building on their unrivalled experience and expertise, fundamental research is a specific focus of investment that drives creativity and contributes to developing the cosmetics of tomorrow.

Vision:“A company that is highly successful economically.A company where people are enthusiastic about going to work.A company that respects the environment and acts...

DISTRIBUTION

ITALY, AUSTRIA and HOLLAND Later US, RUSSIA and FAR EAST Now present worldwide Found in all major drug stores, supermarkets, beauty salons and

even direct mails Since 2009, the company has more than doubled distribution

reach - from 250,000 outlets to 600,000

PROMOTIONAL STRATEGY

Promotional posters Launch of beauty magazines for women Votre Beaute Clean children campaign Creation of jingles be nice & clean, smell good for dop shampoo Advertising through film commercials Selecting local brand ambassadors Open spa to promote brand

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Advertising campaign because I am worth it

POSITIONING STRATEGIES

Most Innovative High quality Advanced products Affordable price Only cosmetic brand in the world that has products in all

segments consumer, luxury, professional and pharmacuetical

DISTRIBUTION STRATEGY

Through agents and consignments to US, SouthAmerica, Russia, Far-East

CONCENTRIC DIVERSIFICATION

Hair color Styling aids, cleansers, fragrances, body and skin cosmetics etc.

HORIZONTAL INTEGRATION

Acquisition of Maybelline, red ken, Ralph Lauren, Soft Sheen Carson

MARKET DEVELOPMENT STRATEGY

MARKETING MANAGMENT

Develop strategies for Maybelline lipstick in Japan

RELAUNCHING BRANDS

Relaunched Helena and Rubinstein skin care and cosmetic brands

HITTING THE RIGHT AUDIENCE WITH RIGHT PRODUCT

CONGLOMERATE DIVERSIFICATION AND JOINT VENTURE   STRATEGY

L'Oreal joint venture with Nestle.

INDIAN BRAND AMBASSADORS

AISHWARYA RAI BACHCHAN SOONAM KAPOOR

GRAPHS DESCRIBING THEIR STRATEGY

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Asia, PacificWestern Europe North America

Latin AmericaEastern Europe

05

101520253035 31

24

20

13

9

GEOGRAPHIC ZONE %geographic zone

Geographical distribution of products/ demand for products

Skincar

e

Haircar

e

Make-u

p

Perfumes

Toile

tries,

deodoran

ts

Oral co

smeti

cs

05

101520253035 31

25

1714

12

1

PRODUCT CATEGORY % product category

Concentration on different product category

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Consumer Products Luxury Products

Professional Products Active Cosmetics

0

10

20

30

40

50

60 52.1

25.5

14.9

7.2

DIVISION %division

Products distributed in different status

Skincare Haircare Make-up Hair colourants Perfumes Other

0

5

10

15

20

25

30 27.9

21.521.3

14.6

9.8

4.9

BUSINESS SEGMENT %Sales

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LOREAL COMPARISON WITH ORIFLAME

2010 2011

oriflame 1002.5 1014.8

loreal 3293 3057

250.00750.00

1,250.001,750.002,250.002,750.003,250.00

oriflame

loreal

OPERATING PROFITSO

PERA

TIN

G PR

OFI

TS

2010 2011

oriflame 1513.6 1493.8

loreal 19496 20343

2,500.00

7,500.00

12,500.00

17,500.00

22,500.00

oriflame

loreal

SALES MILLION €

SALE

S

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CONCLUSION

L’ORÉAL is the world market leader in cosmetics innovative and invest a lot of money in research and development Products are positioned in the high-priced segment because of

their quality They offer well coordinated products for different target groups To keep their strength alive they have to observe their

competitors like PnG and UNILEVER

-Thank you