L’Oréal

Background history

The L'Oréal Group is the world's largest cosmetics and Beauty Company. With its registered office in Paris and head office in the Paris suburb of Clichy, Hauts-de-Seine, France, it has developed activities in the field of cosmetics. Concentrating on hair color, skin care, sun protection, make-up, perfumes and hair care, the company is active in the dermatological, tissue engineering and pharmaceutical fields and is the top nanotechnology patent-holder in the United States.

Eugene Schueller a young French chemist developed an innovative hair color formula, Aureole. He manufactured his own products and sold them to Parisian hairdressers. The company was registered in 1909. The guiding principle from the beginning was research and innovation in the interest of beauty.

By, 1950 had acquired 100 products and today they are 2000 product strong. From the beginning Eugene was ambitious about his company and by 1912 the brands were found in Holland, Austria and Italy. In a few years the company was distributed US, South America, Russia and Far East. Today, L’Oréal is present worldwide through its subsidiaries and agents. L’Oréal started out in hair color business but soon branched out into other cleansing/beauty products.

L’Oreal’s century long history is marked with successes. Today the 500 brands of L’Oréal provide diverse products from hair color, permanents, styling aids, body and skin care, cleansers and fragrances.

Products

BECAUSE YOU'RE WORTH ITThe French brand, L'Oréal, one of the world's top beauty care brands, offers men and women on every continent beauty and personal care products that incorporate the latest scientific advances. Visionary formulas, upscale presentation and products that are a pleasure to use: L'Oréal provides affordable luxury for people who demand excellence. 

The Product Categories

1. Consumer products The Consumer Products Division is dedicated to offering all consumers its high technology products at competitive prices through mass-market retailing channels. The Division’s brands develop hair care, skincare, make-up and perfume products that meet the aspiration of all of its customers.The Division's 5 international brands are L'Oréal Paris, Garnier, Maybelline New York, Soft sheen.

2. Professional products The Professional Products Division is at the service of hairdressers worldwide. Our complementary brands meet the requirements of salon professionals in colorants, hair care, texturing and styling formulas and provide salon customers with a wide range of innovative, high-performance products. The Professional Products Division of L’Oréal is made up of four different brands: L'Oréal Professionnel, Kérastase, Redken 5th Avenue NYC and Matrix.

3. Luxury products

The prestigious brands of the Luxury Products Division offer consumers top of the range products. Clients of selective retail outlets (department stores, perfumeries, travel retail outlets, and the brands own boutiques) receive personalized advice at the point of sale, enabling them to choose the products best suited to their needs.Lancôme, Helena Rubinstein, Biotherm, Shu uemura and Kiehl’s offer premium products known for their innovation, performance and quality. The Luxury Products division houses also some of the world's top perfume brands: Giorgio Armani, Ralph Lauren, Cacharel, Paloma Picasso and Guy Laroche.

3. Active cosmetics

The Active Cosmetics Department designs and markets dermo-cosmetic skin care products that are sold in pharmacies and specialist retailers. These products offer consumers proven safety and effectiveness supported by advice from pharmacists &dermatologists.The Department’s three brands, Vichy, La Roche Posay and Innéov, offer skin care, sun care, and hair care and make-up products.

L’Oréal SWOT Analysis

Strengths:

1. Continuing research and innovation in the interest of beauty which assures that the L’Oreal Cosmetics offers the best to their consumers.2. Leader in the growing cosmetics industry despite the competition in the market.3. High-end advertising which adapts to the culture of target audience4. Has over 60,000 employees globally5.Apart from hair color, skin care, sun protection, make-up, perfumes and hair care, the company is active in the dermatological and pharmaceutical fields and is the top nanotechnology patent-holder in the United States6. L’Oréal has operations in over 130 countries and over 4o manufacturing plants

Weaknesses:

1. Decentralized organizational structure. Due to the many subdivisions of the Company, there is also the difficulty in the control of L’Oreal2.Stiff competition from other leading cosmetic established brands.

Opportunities:

1. Growing market that ranges from the affluent, the aging and also the masses of the developed countries.2. Greater market share because of the numerous patents registered by the Company.

Threats:

1. Growing competition within the field of cosmetic brands2. Economic downturn that is quite evident in other countries3. L’Oreal Group may be producing the best of its line, people may find that their products are not of their basic needs and would skip buying L’Oreal products.

C onclusion

L’Oreal’s core business is people’s well being, and their ambitions go far beyond financial performance.

The Group has confirmed its determination to link economic growth with strong ethical principles and a real awareness of its responsibilities to the community.