Slide 1

University of Natural ScienceInternational Training & Education Center ITEC

FINAL PROJECT

Professor: Gary Edward GissClass: 12BSM2

2013

Members of group:

Trn i Myo Ngc Lan iNguyn Th Tr MyPhm Phng DuyNguyn Thin Phng Linh

INTRODUCTIONEstablished in 1909 by scientist - Eugene Schueller.The acquisitions: Maybelline in 1996 SoftSheen in 1998Carson in 2000Urban Decay in 2012.Now: include 27 international brands present in 130 countries

Head office in Paris

Four major beauty categories : hair color, cosmetics, hair care, and skin care.

Success:Analysis:ProductPricePlacePromotion

STRATEGIC MARKETING ANALYSIS

1. Success:

In Asia-Pacific, LOral has the highest turnover relative to the others areaThe L'Oral becomes the second largest in ChinaLOral Men Expert is the best trademark in Taiwan

2. Analysis:

PRODUCT

PRODUCTFive main brand categorized by their target markets.LOral LuxeConsumer Products DivisionProfessional Products DivisionActive Cosmetics DivisionThe Body Shop

PRODUCTLOral Luxe: Include 16 brandsProduct available at department stores, cosmetics stores, travel retail, own-brand boutiques and dedicated e-commerce websites.Lancme, Yves Saint Laurent Beaut, Giorgio Armani, Biotherm, Yue Sai,

PRODUCTConsumer Products Division- Include 6 brands- Product are distributed in retail channels.- LOral Paris, Maybelline New York, Garnier, Crateurs de beaut.com, Softsheen.Carson ,Essie.

PRODUCTProfessional Products Division Include 8 brands.Product are distributed in salon worldwide.LOral Professionnel, Redken, Pureology, Mizani, Krastase, Matrix, Shu Uemura Art of Hair, Essie.

PRODUCTActive Cosmetics DivisionInclude 6 brandsProduct are sold in healthcare outlet worldwide, including pharmacies, drugstores, and medi-spas.Vichy, SkinCeuticals, Roger&Gallet, La Roche Posay, Innov, Sanoflore.

PRODUCTFlexibleMain product in China: Skin care: whitening product with herbal medicine extract for different segment.Hair care: focus on product for a smooth, shiny and black hair.Make-up product: change its design, packaging

Becoming LOral today, the company have develop a flexible, adaptable marketing strategy for specific market. Today, our group will analyze the marketing strategy that LOral use in China as they have some similar point in culture and customer perception with Vietnam and a big and promising market. As you can see, women in both country like to be fair and black hair. For that reason, they have launch.19

PRODUCTFor each region: Different color lipstickDifferent cream component

PRICE

Products used in beauty salons and hairstyling institutes professional : such as LOreal Professionel, Matrix, Mizani, Redken, Keratase...Approximately from 6 to 18 (about from 180.000VND to 540,000VND)

Conventional products - including LOreal Paris, Garnier, Maybeline NY - has a wide rangeLowest cost(approximately 3 - 14, about 90,000VND 420,000VND)Holding the largest share in the total of the product line (51.1% in 2009).

Price of LOreal product line is lower than other brands, such as Ohui, Lancome, and more expensive than Missha and others. Ohui : from 500,000VND to over 1,000,00VNDLancome : from 200,000VND to over 1,000,000VNDLOreal : from 100,000VND to under 2,000,000VNDMissha : from 30,000VND to 540,000VNDRankin the middle compared to all products

PLACE

It has 3 major channels :The hair salon: on a network of sales representative.The mass market through intermediaries such as supermarkets, systems cosmetic store... Pharmaceutical stores. This channel specialized in distributing the product specific line such as Vichy, Skniceuticals...

PROMOTION

28

PROMOTIONPublic Relation:TheLOral-UNESCO Awards for Women in ScienceThe LOral BrandstormThe Look Good Feel BetterThe Mother River Protection Awards

Improve the position of women in science by recognizing outstanding women researchers who have contributed to scientific progress.Partnership between the French cosmetic company LOral and UNESCO worth $100,000Every 2 years for individual whose project is about protecting the environment, teaching young people, especially skin protection.$40,000 funding over 2 years to 15 young women scientist engage in exemplary and promising research projects.Business game related to marketing for students in 43 countries. 1st prize: $10,000, 2nd prize: $5,000, 3rd prize: $2,500 PJ is a Beauty Industry Charity which is formed over 16 year ago to help woman combat the visual effect of their cancer treatment 29

PROMOTIONEducation and environment program, contest (China)Scholarship for poor student and handicapped student.Invest on new business of college student for doing profitable project for society. A tour of LOral manufacturer in Suzhou that have waterwaste purification system.Charity that help minority people.

PROMOTIONFacebookTwitterYoutube channelAds

400 people post content on fb everyday, even the companys chief marketing officerEvery countries have their own language loreal youtube channel. In this channel, they post the make-up tutorial by make-up artist or even spokeswomen, event that loreal sponsor31

CONCLUSION

NEW PRODUCT LINE

Some elements for True Love kit to be a potential product when its released:It will be the completely new product which has ever been had on the market. It will be a new customer segmenthave the demand of sprucing up as well as womenThe number of the gay community are increasing (http://www.youtube.com/watch?v=w7eBWQ6T5Zk- Gay Boy Does Yo Makeup)It is the sex which was accepted by the laws and the community,(https://www.facebook.com/gay.community)

What value the product give to targeted customer:It can be an evidence which is shows that their sex are getting more attention .It will be a product that fit their physical skin (men skin) and satisfy their desire (want to be looked like a girl).

A Steady Foundation of LOREAL which is the basis forxyz product to be successful:The company has operated for 104 years since 1909In 2013, Loreal ranked No. 2 in the top 20 cosmetics companies sales with the total of 25.8 billion US dollars. (According to http://chemistscorner.com)Loreal Group is the best cosmetics brand all over the world in 2013 (According to the Click Top 10)135 products of LOREAL are soldPresence in 130 countries with more than 65000 employees.Owns 23 different brands, each brand earns more than 50 million per year

CLIP

Thank you for listening