Presented by: Jane Lancia Nancy

The L’Oreal history 1907 – found by Eugene Schueller 1912 -1920 Expanded to the US, Russia and Asia 1953 - Issued a license to Cosmair 1965 – Expand business into health and beauty products through acquisition 1980s-1990s expanded acquisition 2000 - hair and beauty products 2001-now Acquisition hair care, skin care and color cosmetic company

The history of cosmetics 3750 BC - First used in Egypt 7C-12C distillation procedure was invented 18C-19C technology was used in the production of cosmetics Mid 20C - About 500 cosmetics companies in the world Being monopolized by multinational company by the end of 20C

Global issues Brand acquisition & expansion (culture awareness & demographic differences) New York Maybelline New York China Vichy Chicago Establishment of “L’Oreal Institute for Ethnic Hair & Skin Research”

Global issues Governmental intervention Localized laws (centrally planed economy) High import taxes and tariff Merchandise restrictions Cultural differences (Yuesai & Mininurse) Fierce competition (home, abroad, counterfeits)

Future trends integrated industrial chain (generally) Major beauty services Support production of material professional instruments & cosmetics Matched industry ornament color service image design Media exhibition advertisement beauty newspapers & magazines Base of talent resource beauty education

Company Analysis Strength Strong brands portfolio 12 core brands account for 90% of its sales Geographic presence Excellent advertising strategy Strong R&D capability 5 R&D Center: France: Aulnay, Pairs America: Clark Japan: Kawasaki China: Shanghai ( Sept.2005)

L’Oreal Sales Analysis

L’Oreal-Geographic presence

Weakness Weak performance in some areas North America: Shampoo & Conditioners—P & G In 2007: Europe:52.7% North America: 27.6% Other:19.7% German: Hair coloration– Henkel Western European: Hair styling Lack of uniform advertising support

Opportunity The rapid growing cosmetic market Market: 12%; $1 billion(2010); American old people: form 13% to 20% Potential in emerging market Brazil Africa Asia Acquisition and alliance Diesel—Perfume Sanoflore—Organic cosmetics The Body Shop—International cosmetics brand

Threat Fierce competition Moral issue on animal testing Naturewatch Compassionate Shopping Guide The Body Shop

Competitors Domestic competitor Dior Abroad competitor Procter & Gamble Shiseido

Dior 1946, headquarter in pairs, France Three categories: skin care, color cosmetics and perfume Elegant and gorgeous design

Procter & Gamble Second –largest professional hair production company The market share of 24%, L’Oreal is 29% More than 300 brands in over 160 countries Focused on hair care market in 2000 The diversity in product Major retailer-Wal-Mart

Shiseido Japan brand , found in 1872 The first lotion –Eudermine Fit for Asia skin Range of customers ( 20-50 –year-old) Innovation

Recommendations Short-term “Green” products Focus on campus Sponsoring school activities Holding beauty lectures High-level image stores Image information consulting Beauty clubs for regular customers

Market Share

Long-term Expansion in emerging markets Brazil Russia India China Cultivating and attracting high-qualified beauty talents Raising brand awareness Media sponsorships TV commercials

Conclusion--Formulas Strength Weakness Market Leader = Lose Market = Opportunity Treat Recommendation Promising Future

Thank You!