L'Oréal

{Because You’re Worth It}

Course Instructor: Dr. Preeti Mehra

Academic Task No.: CA- 3 Academic Task Title: Marketing

Management (MKT-503)

Date of Allotment: 5th August, 2019 Date of submission: 30th August, 2019

Student’s Roll No: Q1953A06

Student’s Reg. No: 11906130
Evaluation Parameters: Introduction to the company: 2.5 marks, Past analysis of the company: 2.5 marks,
Analysis of current situation using marketing concepts:7.5 marks & comparison with competitor: 2.5 marks

Learning Outcomes:

Understanding consumer behaviour is the main key to success for every marketing strategy in order to create
and transfer product values to customer’s and also to maintain consumer’s values in return. Especially in the
highly competitive market, this point of consumer’s studying becomes more and more important to the
survivor of businesses.

Declaration:

I declare that this Assignment is my individual work. I have not copied it from any other student’s work or
from any other source except where due acknowledgement is made explicitly in the text, nor has any part
been written for me by any other person.

Student’s Sign/Name: Prateek Sehgal

Evaluator’s comments (For Instructor’s use only)

General Observations Suggestions for Improvement Best part of assignment

Evaluator’s Signature and Date:

Marks Obtained: _______________ Max. Marks: ______________

 INTRODUCTION
L’Oréal was founded in the year 1909 by Eugene Schueller, a French chemist who developed an innovative
hair colour formula. Today, the L’Oréal Group is the world's largest cosmetics and beauty company and it
headquarter is in the Paris suburb of Clichy, France. It started the business from the hair colour business
however presently it developed activities among the square of cosmetics, concentrating on skin care, sun
protection, make up, perfumes and hair care. L’Oréal main branches square measure Cosmetics, The Body
Shop and Dermatology. L’Oréal is active within the dermatological and pharmaceutical fields; but
Cosmetics is the key revenue generator (See Exhibit I). It is additionally the highest engineering science
patent-holder within the United States. L’Oréal celebrate advertising catchword is "Because I’m worth it". It
has recently been replaced by "Because you're worth it". L’Oréal portfolio of brands includes the cosmetics
vary of L’Oréal Paris and Maybelline New York State, shampoo range Garnier, luxury products such as
Lancôme and active cosmetics such as Vichy. Its nearest world competition within the premium makeup
segment is Revlon.

India’s contribution to the expansion of the world cosmetics market is regarding sixty per cent. The beauty
and also the well-being sector in Asian country are unit on a boom. L’Oréal started its operations in Asia
country thirteen years past. The share of the Indian market to L’Oréal’s turnover of 15.8 billion is tiny,
however is growing. It operates in Asian country through its altogether in hand subsidiary, L’Oréal Asian
country has four divisions — consumer products, professional products, active cosmetics and luxury
products. The biggest contributor to its revenue in Asian country is that the client merchandise division
crystal rectifiers by its strongest complete in terms of sales - Garnier.

L’Oréal India has recently setup its own industrial plant in Pune. It imports most of its merchandise from
its facilities abroad and manufactures the remainder in Pune. The Indian subsidiary headed by Chief in
Operating Officer Dinesh Dayal, UN agency has been with the corporate for 20 years, is one of the key
officials responsible for the formation and operations of L’Oréal India. The operations in India are
conducted through a judicial mix of global and local methods

L’Oréal proclaimed a replacement property setup in 2013, that they hope can facilitate reach the goal of one
billion new customers by 2020 by manufacturing more products whose impact will be less on environmental
and helping customers make sustainable lifestyle choices. The main commitments to achieve by 2020
include: aiming for 100 percent of its products to have an environmental or social benefit; reducing the
company's environmental footprint by 60 percent; and empowering customers to create property
consumption selections

L'Oréal holds 10.41% of the shares of Sanofi- Aventis the world's variety and Europe's number one
pharmaceutical company. The Laboratories Innéov is a joint venture in nutritional cosmetics between
L'Oréal and Nestle; they draw on Nestlé's knowledge in the fields of nutrition and food safety.
 “MISSION”

Offering all women and men worldwide the most effective of cosmetics innovation in terms of
quality, effectiveness and safety to satisfy all their needs and everyone their beauty desire in their
infinite diversity.

(Our mission, Beauty for All)

“STRATEGY”

L’Oréal has chosen a unique strategy: Universalisation. It means globalisation that captures,
understand and respect differences. Differences in desires, needs and traditions. To offer tailor-made
beauty, and meet the aspiration of consumers in every part of the world. L’Oréal is driven by this
vision of the world.

“VALUE”

Striving for excellence. L’Oréal is attempting to enchant the whole portfolio with unending
innovating products whereas meeting all standards set for quality and safety. Passion for adventure
their expertise drives their passion for new discoveries and Innovation in cosmetics. Enrichment
through diversity: understanding and valuing each individual is an essential part of their corporate
culture. Leading innovation in beauty: research, sensitively to customer need, fundamental research
is a specific focus of investment that drives creativity and contribution to developing the cosmetics
of tomorrow

“BRANDS’’

Brands are unit typically classified by their targeted markets, such as the mass, professional, luxury,
and active cosmetics markets. The Body Shop and Galderma are directly hooked up to the head
office. L'Oréal also owns interests in various activities such as fine chemicals, health, finance,
design, advertising, and insurance.
 Past analysis

Below is the Strengths, Weaknesses, Opportunities & Threats (SWOT)Analysis of L'Oréal Paris: -

 Strengths

 Focus on mass market

 Market leading positions
 More efficient operational structure
 Quicker product development
 Brand development and marketing

 Weaknesses

 Lack of industry focus

 Absence from premium market
 Decentralized organizational structure
 Headquarter is in France
 Using more celebrity endorsement on their ads

 Opportunities

 Widening consumer base

 Demand for mass-market product
 Building on brand equity
 Stronger, focused on hair care portfolio
 Products for an ageing population

 Threats

 Industry consolidation
 Private label product
 Negative publicity
 Intensifying competition
 Stagnation in North American region
 Current situation

The market chosen for this assignment is for cosmetic products which have already a huge market
and growing at a rapid rate with consumers having contrasting working attitudes and style, and
companies producing goods according to the local requirement in accordance to the wants of the
customers and consumers. L’Oréal a cosmetic giant is operating in over 130 countries worldwide.
L’Oréal has divided their product range in five different categories to focus its marketing activities
exclusively designed for the targeted market audience.

 Professional products for the service sector business holders like hair salons.
 Consumer Products for mass consumption of local people.
 Luxury Products for those who want to pay a little more extra and who are cautious
about how they look.
 Cosmetics general cosmetics.
 Body Shop a new sector of product range said to have based its products after getting
inspired from the nature.
 Marketing concept: -

The selling concept is that the strategy that corporations implement to satisfy customer’s needs,
increase sales, maximize profit and beat the competition. There are five selling ideas that
organizations adopt and execute.

 Societal marketing concept

L’Oréal plays an important role in fulfils the societal marketing concept. L’Oréal make marketing
decisions not only by considering consumers' wants, the company's requirements, but also society's
long-term interests. L’Oréal organised the task to work out the needs, wants, and interests of a target
market and to deliver the desired satisfactions more effectively and efficiently than competitors in a
way that preserves or enhances the wellbeing of both the individual consumer and society in
general. L’Oréal provides the direct benefits for the organization and secondary benefit for the
community. L’Oréal use this concept to meet its needs and the needs of a consumer while
considering the long-term good of society n this type of marketing, a corporation uses its
socially aware stance as the way to draw in customers World Health
Organization might appreciate the company's need to plug its product considerately for society.

Marketing concept

L’Oréal analyse the needs of their customers and then make decisions to satisfy those needs, better
than the competition. L’Oréal produces the product which meets the requirements of the customers,
the need for promotion is reduced due to which becoming a sick unit are also reduced due to
continuous patronage of customers. L’Oréal follow the marketing concept which has a strategic and
philosophical value. It helps the L’Oréal management to direct organisational efforts towards the
long-term and wider goals, i.e., stability and growth of the firm. Sustained interaction with
customers becomes possible.
 Selling concepts
L’Oréal make an effort to sell their products after satisfy all the needs of a customer. By using
selling concept company thinks if customer is left to themselves, they will not make the efforts to
buy a company product so that L’Oréal make a focus on undertake an aggressive selling and
promotion efforts. So that L’Oréal use different form and medium of advertising. So, L’Oréal
undertake many selling and promotion of their products for marketing success. The organisation
maintains a strong sale- oriented teams as a mean of attracting and keeping customers

 Production concept
L’Oréal use the production concept for their customers who will choose product and services that
are widely available and are of low cost. So business is principally involved with creating as several
as units as attainable. By concentrating on producing maximum volumes, such a business aims to
maximise profitability by exploiting economics of scale L’Oréal managers try to achieve higher
volume with low cost and intensive distribution strategy. This seems a viable strategy in a
developing market where market expansion is the survival strategy for the business. Companies
interested to require the advantage of scale economies pursue this kind of orientation.

 Product concept

L’Oréal company fully utilised the product concept. L’Oréal proposes that consumers will
prefer products that have better quality, performance and features as opposed to a normal
product. L’Oréal company follows the merchandise construct ought to consider
their technology such that they supply with glorious feature made and innovative merchandise for
optimum client satisfaction. It is the engine that pulls the remainder of the selling programme.
Products fill in the needs of society. L’Oréal represent a bundle of expectations to consumers and
society and give identity to the product and can add functional value and usability so that the
intended customer can derive this profit and eventually buy the product in the market.
 Marketing MIX: -

L’Oréal is the largest company in the world that deals in personal care industry. Founded
in the year 1909, this international beauty and cosmetics company has its head office in
Paris. L’Oréal has a vast and varied interest, as it also is active in fields like tissue
engineering, toxicology, dermatology and biopharmaceutical research.

 Product: -

L’Oréal has a portfolio endowed with international standard of brands covering a wide range
of products while satisfying the needs of every customer present in any part of the world. All its
products pass the international standards of testing. The company deals in activities related to
cosmetics, skin care, hair colour, make-up, sun protection, hair care and perfumes. In India,
L’Oréal operates through four different divisions that are as follows

 Active cosmetics include brands like Vichy, Inneov and Sonaflore.

 Luxury products include brands like Diesel, Ralph Lauren and YSL.
 Professional products include brands like Technique, Matrix Essentials, Mizani and
Kerastase.
 Consumer products (personal care) include brands like Ombrelle, Maybelline, Essie,
Garnier, Magic and Colorama.

Some of the consumer favourite products of the brands are eyeliner, mascara, eye shadow and
primers for eyes, primer, powder, foundation, concealer and blush for face. lip liner, lip gloss, lip
balm and lip colour for lips, nail polish and remover for nails, hair colour in various shades for hair,
Shampoo, conditioner for hair care, moisturizers, cleansers, toners for skin care and hair spray,
serum for hair styling are also used. L’Oréal also has a kid’s line of products.

 Place

L’Oréal has development and research canters in six places worldwide like Japan, France US

and china and its products are available in one hundred and thirty countries of the world. The

various products are found in various outlets like perfumeries, hair salons, super markets,

pharmacies, beauty outlets and even through direct mail. Besides this, the brand has its own website

and has tie-ups with other shopping sites on internet.

With all the needed product information, the consumers can make purchases from any part of the

world. In this changing time internet has become one of the most important outlets for

successful purchasing and buying. L’Oréal’s operation’s in India are on an ever-growing path as the

awareness of the beauty products has resulted in the brands growth and popularity. Its operations in

India are through its fully owned subsidiary “L’Oréal India”.

The company has set up a manufacturing plant in the city Pune in Maharashtra, India. Most of the

products are imported from abroad and the rest are manufactured in this plant. The successful

growth of the brand in India is credited to the efficient supply channels and distribution policies. In

one of its kind distribution strategy. L’Oréal has appointed skilfully trained hairdressers that work in

their own salons and outlets by providing professional services to the consumers. This includes

various treatments and product awareness campaigns that help in creating a new consumer base.

This has led to a number of L’Oréal salons in India, where consumers come for professional and

efficient treatment and these salons are for both the gender men and women.

 Price

The biggest revenue earner for L’Oréal in India is the products related to consumer division. The
urban consumer is not as price conscious as was portrayed earlier. For premium products, the
consumers are ready to dole out premium prices. As many of the L’Oréal products belong to the
high qualitative product group, the company had to maintain a premium pricing policy for those
products. The company has decided to maintain its value-added pricing policies for all its products.
Some of the brands under L’Oréal have products that cater to the middle-class section of the society
and the pricing policy for these products is reasonable so that the consumers can easily afford them.

Sometimes, in order to penetrate a new section of the market, the company has offered discounts
and schemes especially on introductory products. This leads to the minimization of prices and leads
to an increase in sales figure resulting in further revenues. In order to strike a reasonable balance
between its products and prices the company has taken steps to increase its Stock Keeping Units, as
this will help in creating a balance over the pricing policies.

 Promotion

L’Oréal has an advertising slogan that has always defined the brand. The first slogan was “Because
I’m Worth it”. This was later replaced by “Because you’re Worth it” and in the year 2009, this was
again changed to “Because we’re Worth it”. The changing times along with the mindset and concept
can be seen in the changing slogans. The shift to the letter “we” was to denote the consumer
involvement in all the brand products.

L’Oréal is a truly international brand and hence its advertisements are at a premium level. Attractive
and well-known models of international calibre are the part of its promotions. In India, the
advertising campaigns are operated through local methods as well as through global methods to
appeal to a wide range of consumers. The advertisement agency recruited is “McCann
Erickson”. Former Miss World “Aishwarya Rai Bachchan” has been its brand ambassador and
international face and presently the actor “Sonam Kapoor” has been in the L’Oréal advertisements.
The ad campaigns are in numerous television channels, radio, fashion magazines, hoardings and
neon signs.

Free products as samples are provided with other products or at salons to market the new items.
Sometimes discounts are offered on some products to increase the sales figures and to promote the
products. In many cases, surveys for satisfaction are carried out amongst the people who have used
these products. The results are then published as part of the promotions. For some of the L’Oréal
brands the company has adopted a “viral marketing strategy “under which the brand and its products
are marketed through marketing messages. The use of internet has opened new doors for every
brand and in every field be it marketing or promoting.
 Competitor: -
A well-known French company, L’Oréal Paris is one of the leading companies in the personal care
and cosmetic industry. The company is headquartered in France and established in the year 1909. It
has an annual sale of various products of about $27.2 billion dollars. Their famous products are
colour cosmetics, hair care, sun care, skin care, and fragrances. Their popular brands are L’Oréal
Paris, Garnier, Soft sheen and Maybelline New York. Their hair care products include Kerastase,
Redken, Pureology, and Matrix. L’Oréal is regarded as one of the most ethical companies in the
world. The popular actress Deepika Padukone is the brand ambassador of L’Oréal Paris.

The various L’Oréal competitors: -

L’Oréal Paris Competitors (Main)

1. M.A.C(TOP)

2. Maybelline

3. Dior

4. Chanel

5. Urban Decay

1) MAC
A famous cosmetics manufacturer, MAC cosmetics, is headquartered in New York, United States. It
is the leading professional makeup authority in the world. It produces a wide range of products for
all ages. The various products of MAC serve the demand of consumers and professional makeup
artists. The products of MAC are Prep + Prime, Pro Longwear, Lightful C, Mineralize, and Studio.
he MAC Pro Longwear is focused to keep the makeup for long hours. The various products are
Fluid line, Pro Longwear Paint Pot, Pro Longwear Foundation, Pro Longwear Concealer, Pro
Longwear Lip Pencil, and many more.
2) Maybelline
Maybelline is one of the top cosmetics companies in the United States. It helps women to discover
new looks and exhibit their own creativity and individuality. Maybelline provides scientifically-
advanced formulas, radical textures, and trendsetting shades to enhance the beauty of women.
Maybelline produces numerous products for eyes, faces, and lips. The various products for eyes are
eyeshadows and eyeshadow primers, brows, eyeliner, and mascara collections that are designed to
alter the look. The eyeliners are available in liquid, gel, waterproof, and pencil form. The various
products for the face are foundation, concealers, powders, blushes, primers, contour, and
highlighter. The products help the users to get their look.

3) Dior
Christian Dior was a French fashion designer, who was the founder of the top fashion houses called
Christian Dior. It is currently owned by Groupe Arnault. Their fashion stores are available across
the globe. Christian Dior is engaged in the production and distribution of consume goods. The
Company hands out its products through the Company-owned shops and licensed distributors
situated across Europe, the United States, Japan, and the Asia Pacific. Christian Dior has their
business operations in about 400 subsidiaries around the world.

4) Chanel
A private company of French, it was founded during the year 1909 by Coco Chanel. The company
is headquartered in Paris, France. This brand is considered as the valued luxury brands across the
world with their signature perfume. It has a total brand value of $7 billion. Chanel is a high luxury
brand that manufactures products like ready to wear clothes, luxury goods, makeup, and fashion
accessories. The company sells the products across North, Central and South America, Europe,
Asia, Middle East and Oceania. It sells their product through their 120 boutiques available across
the globe.

5) Urban Decay
Also regarded as a top L’Oréal competitor, Urban Decay is an American cosmetic brand that is
headquartered in Newport, California. Founded in the year 1996, Urban Decay products are being
sold worldwide. Their produce various products for lip, eye, nail, face, and body products. Urban
Decay has forever stood for the empowerment of women. During the earlier years, the prestige
beauty market was known for pink, red and beige colours. Urban Decay gave women the different
makeup colours they desired.
 MAC Cosmetics
MAC Cosmetics, conventionalized as M·A·C, could be a cosmetics manufacturer supported in
provincial capital, Canada in 1984 founded by Frank Toskan and Frank Angelo. The company is
headquartered in New York City and have became a part of the Estée Lauder firms in 1998.

MAC is an acronym for Make-up Art Cosmetics. AC Cosmetics is called one among the highest 3
world makeup brands, with associate annual turnover of over $1 billion, and 500 independent stores,
with over thirty stores in France. All stores are run by professional makeup artists. MAC is a
political makeup whole, want to produce makeup for movie actors. The most in style by the whole
square measure Studio Fix Fluid and Ruby Woo Lipstick.

The MAC AIDS Fund was established in 1994 to support men, women, and youngsters affected
by HIV/AIDS globally by addressing the link between poorness and HIV/AIDS. According to MAC
Cosmetics, the fund has raised over $400 million through the sale of MAC's Viva Glam Lipsticks
and Lip-glosses, donating 100% of the sale price to fight HIV/AIDS. The Viva Glam merchandise
has been a best-seller for the MAC Cosmetics brand. MAC has collaborated with several celebrities
for its Viva Glam line, on limited edition lip glosses and lipsticks to support the Mac AIDS Fund.
Every year MAC selects a brand-new advocator for Viva Glam. The first was drag queen RuPaul in
1994. RuPaul’s Viva Glam lipstick was the primary product MAC Cosmetics advertised.

 Marketing mix

 Product
MAC Cosmetics started its journey by distributing its products between models, photographers and
members of the family. It has gained a worldwide respect and recognition via its products. The
company have released tests that show a marked improvement in the firmness and smoothness of
skin as well as wrinkle reduction after using MAC Cosmetics.

In the year 2016, MAC Cosmetics initiates its new collection MAC Selena and within a few hours,
it was a total sold-out. People gathered outside the stores for hours to make a purchase. In December
the collection was restocked because of such high demand. The product portfolio of MAC
Cosmetics includes
 Place
MAC Cosmetics started its journey from a counter in a departmental store in Toronto in Canada and
with time has spread to other parts of the world. Its headquarters base is at New York City in the
United States. The first store with MAC as a brand name was opened in Greenwich Village in the
year 1991.In the 1990s it had one hundred stores and currently, the company owns one thousand
independent outlets that are spread over seventy countries. Thirty of these stores are located in
France and the rest in places like India, Canada, United States and Australia.

 Price
MAC Cosmetics have a niche following in fashion and retail market. In the beginning, its products
were planned for professionals like make-up artists, actors and models but with time the company
has diversified its target customers to include customers from the consumer market. With a blend of
design and quality, MAC Cosmetics has been able to create a solid image that has the power
to differentiate itself from its competitors. It offers something that is unique and cannot be copied
because it keeps on evolving with time.

 Promotions
MAC Cosmetics has created a reputation for itself by operating with professionals from the globe of
fashion. It relies heavily on word-of-mouth publicity because as its popularity grew people started
talking more about the brand and its qualitative products.

The company offers its customers a large credit in its popularity as it has been able to carve such a
distinctive place in cosmetic sector only because of the customer’s appreciation. MAC’s motto is
descriptive and reflective of its attitude as it proclaims All Ages, All Races, All Sexes.

Unsolicited support from celebrities have helped MAC Cosmetics in reaching new heights. It has
been associated with Janet Jackson, Cher, Naomi Campbell, Linda Evangelista, Princess Diana,
Mariah Carey and Madonna.
M.A.C VS LOREAL
MAC Cosmetics, conventionalized as M·A·C, could be a cosmetics manufacturer supported in
provincial capital, Canada in 1984 founded by Frank Toskan and Frank Angelo. The company is
headquartered in New York City and have became a part of the Estée Lauder firms in 1998.

M.A.C ESTĒE LAUDER

(founded in Toronto) (founded in New York City)

ESTĒE LAUDER
The Estée Lauder Companies is a multinational manufacturer and marketer of repute skincare, hair
products, makeup and fragrance, based in Midtown Manhattan, New York City. The company owns
a various portfolio of brands that are distributed through both retail channels and digital commerce
internationally.

The company comes into began in 1946 when Estée Lauder and her husband Joseph Lauder began
producing cosmetics in New York City. They first carried only four products: Cleansing Oil, Skin
Lotion, Super Rich All-purpose Creme, and Creme Pack. They established their first department
store account with Saks Fifth Avenue in Manhattan in 1948.

Sales Growing
Estée Lauder has seen it sales increase by a CAGR of 4.12%, since 2011. This has also been fairly
dynamic growth with four out of the last five years seeing sales growth.

This compares well to L'Oréal, which has seen a sales CAGR of 2.94% over the last five years with,
again, 4 of the last 5 years showing growth.

In that time, Estée Lauder has also seen its net income before taxes grow at a CAGR of 8.7%
compared to L'Oréal's 4.3%.
Strengthening Margins
Naturally, the faster net income growth noted above is reflected in growing
operating profit margins at Estée Lauder:

Despite this margin’s growth, Estée Lauder continues to lag L'Oréal somewhat over the last five
years:
Nonetheless, these are pretty respectable figures, and compare well to other companies in this
sector:

In fact, Estée Lauder and L'Oréal along square measure leading the pack with regard margins. With
the strength of their brands and the pricing power that comes with that, I suspect they will manage
to retain or grow their margins in the future.

Strong Cash Flows

Estée Lauder and L'Oréal conjointly exceeds their peers with regard relevance income. The average
Free Cash Flow to Sales ratio of industry peers over the last five years sits around 6%. In
distinction, Estée Lauder and L'Oréal each well surpassed this:
Again, L'Oréal leads Estée Lauder from this perspective. However, Estée Lauder has seen its FCF to
Sales increase significantly over the last five years:

In fact, Estée Lauder has force its FCF to Sales quantitative relation up from the peer average to
prior the arena of the sector leader L'Oréal: Quite an impressive and encouraging effort, particularly
once we suppose to the longer term.

The ability to convert over 10% of their sales into FCF is a wonderful thing to see as an investor,
and something I suspect -- judging from their progress to date -- they can continue to build on in the
future.

The Craic in the CROIC

What about the efficiency of that cash generation?

To work this out, we will examine the money comes on endowed capital or CROIC. CROIC is
calculated as FCF (Total Equity + Total Debt and may be terribly great tool for testing the cash
generation of the underlying business.
In essence, a company with a CROIC of 15% generates $0.15 in FCF for every $1 of capital
invested in the business. Anything on top of 100% I take into account a reasonably high-performing
company. For Estée Lauder and L'Oréal, over the last five years, the averages have been:

Needless to mention, Estée Lauder has managed to place along a formidable CROIC rate over the
last 5 years.

What this implies is that for each $1 of capital endowed, Estée Lauder created nearly $0.20 in free
income. In distinction, L'Oréal created a shorter (but still impressive) $0.13.

Estée Lauder's CROIC record is even more striking when looked at on a year on year basis:
Whilst L'Oréal has managed to produce fairly consistent CROIC over this time, Estée Lauder has
managed to put together consistently higher and progressively growing CROIC. This is terribly
spectacular so, and a trend I hope to see continuing in FY2019 and beyond

Modest Debt Load

Estée Lauder conjointly contains a relatively modest debt load. However, when put next to L'Oréal,
over a five-year average, it’s rather serious

This was heavily affected by the low debt levels held by L'Oréal for most of this period. If we take
the data from only the last reporting year, though, the debt-to-equity ratio looks more like this:
CONCLUSIONS

we can assume that L’Oréal has a strong corporate identity. Within the pages it describes how
L’Oréal uses globalization, diversity, advertising, and women to build its identity. First, we noticed
the metaphor used when discussing L’Oréal as the umbrella brand. Almost every continent has a
L’Oréal company within its respective countries. L’Oréal produces a wide range of beauty products
and because of the many different brands, it stands apart from companies who only have one
product to sell. Furthermore, because L’Oréal is global it recognizes that beauty is not one-sided and
incorporates products for people of different colour and texture. This effective use of diversity
makes the consumer feel as though they can relate to this company more than others. This builds
trust and unity with the company and its audience. Not only is diversity shown within their brands,
but also in their advertisements which again shows that L’Oréal cares about its target audience. On
the other hand, the role of women within the company shows that L’Oréal has good ethics, such as
building a program for women in science and offering career options for women who are under-
privileged. Due to all these reasons, L’Oréal is a strong company that represents global beauty.
REFERENCES
 https://en.wikipedia.org/wiki/L%27Or%C3%A9al

 https://www.marketing91.com/marketing-strategy-of-loreal/

 https://www.ukessays.com/essays/marketing/marketing-strategies-of-loreal-marketing-essay.php

 https://www.marketing91.com/loreal-competitors/

 https://en.wikipedia.org/wiki/Est%C3%A9e_Lauder_Companies