1. Presented by:
Jane
Lancia
Nancy

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

3. 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

4. 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”

5. 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)

6. 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

7. 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)

8. L’Oreal Sales Analysis

9. L’Oreal-Geographic presence

10. 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

11. 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

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

13. Competitors Domestic competitor Dior Abroad competitor
Procter & Gamble
Shiseido

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

15. 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

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

17. 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

18. Market Share

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

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

21. Thank You!