presented by: jane lancia nancy. the l’oreal history 1907 – found by eugene schueller 1912 -1920...
TRANSCRIPT
![Page 1: 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](https://reader035.vdocuments.us/reader035/viewer/2022062321/56649e2d5503460f94b1ca48/html5/thumbnails/1.jpg)
Presented by: Jane Lancia Nancy
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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
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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
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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”
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Global issuesGovernmental intervention Localized laws (centrally planed economy) High import taxes and tariff Merchandise restrictions
Cultural differences (Yuesai & Mininurse)Fierce competition (home, abroad, counterfeits)
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Future trendsintegrated industrial chain (generally)Major beauty servicesSupport production of material professional instruments & cosmeticsMatched industry ornament color service image designMedia exhibition advertisement beauty newspapers & magazinesBase of talent resource beauty education
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Company AnalysisStrength
Strong brands portfolio 12 core brands account for 90% of its sales
Geographic presenceExcellent advertising strategyStrong R&D capability 5 R&D Center: France: Aulnay, Pairs America: Clark Japan: Kawasaki China: Shanghai ( Sept.2005)
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L’Oreal Sales Analysis
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L’Oreal-Geographic presence
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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
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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
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Threat
Fierce competitionMoral issue on animal testing Naturewatch Compassionate Shopping Guide The Body Shop
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Competitors
Domestic competitor
Dior
Abroad competitor
Procter & Gamble
Shiseido
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Dior
• 1946, headquarter in pairs, France
• Three categories: skin care, color cosmetics and perfume
• Elegant and gorgeous design
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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
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Shiseido• Japan brand , found in 1872
• The first lotion –Eudermine
• Fit for Asia skin
• Range of customers ( 20-50 –year-old) • Innovation
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RecommendationsShort-term
“Green” products Focus on campus Sponsoring school activities Holding beauty lectures
High-level image stores Image information consulting Beauty clubs for regular customers
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Market Share
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Long-term Expansion in emerging markets Brazil Russia India China
Cultivating and attracting high-qualified beauty talents
Raising brand awareness Media sponsorships TV commercials
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Conclusion--Formulas
Strength Weakness
Market Leader
Lose Market
= =
Opportunity Treat
Recommendation
Promising Future
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Thank You!