Brand marketing loreal

Today’s Cosmetic market place is a huge global economy worth approximately $40 billion, mostly generated in the western countries but it is ever expanding into other global markets and these expand. One of the best known and oldest cosmetic providers is L’Oreal. Brand Personality The Brand personality of L’Oreal mainly reflects the attributes of being Competent and Sophisticated.

Synonymous with the ‘Because you’re worth it’ strap line, L’Oreal remains the premium mass-market brand offering consumers accessible luxury wrought leading-edge products that out-perform the competition. Core Values & Value Proposition The core values are driven by the motto “Beauty for all “. The main pillars of their value proposition are 1) Research and Innovation 2) Safety, Performance and Sensory Experience 3) Sustainable development Performance L’Oreal has been successful in generating a worldwide Brand Identity only because of the company’s powerful core values and brand personality.

This successful Global Branding Strategy of L’Oreal helped the company to earn significant levels of revenue in the past years. In the year 2005, L’Oreal was valued as a $18. 89 billion company. In 2004, total value of the L’Oreal Brand was $5902 million. In 2003, the company recorded a value of $5600 million. 2012 Cosmetics Production Cosmetics Sales Western Europe 45. 0% 35. 6% North America 22. 4% 25. 0% New Markets 32. % 39. 4% Total 100. 0% Brand’s product portfolio and performance Professional products L’Oreal Professional, including Rater and Innate Greatest (created by L’Oreal in 1964) Kristin Esthetics, created by L’Oreal in 2007 and specializing in skin care professionals. Matrix Essentials, founded by Ernie Miller in 1980 and acquired by L’Oreal in 2000. Mizzen, founded in 1991 and bought by L’Oreal in 2001.

Phrenology Research, founded in 2001 and acquired by L’Oreal in 2007. Redden 5th Avenue NYC, founded by Paula Kent and Sheer Redding in 1960 and acquired by L’Oreal in 1993. Shush Immure Art of Hair L’Oreal Luke LanaГ¶me Yves Saint Laurent Giorgio Airman Bothers Charred Diesel Ralph Lauren Skill’s The Body Shop Shush Immure Stella McCarty Clarions Palomar Picasso Darker noir You SAA Helena Rubberiest Consumer products L’Oreal Paris

Umbrella Grainier Amiability Soften-Carson Lee Club des Creates De Beauty Jessie Active cosmetics Vichy La Ruche Poss.. Novel Candlesticks Roger Sanford Changes in Brand Portfolio a Timeline Product”ear 1990 1995 2005 2010 Professional Products REDDEN MATRIX PHRENOLOGY Consumer Products Luxury Products SKILLS YOU SAA Semitransparent Active Cosmetics LA RUCHE-POSS.. SANFORD CANDLESTICKS Body Shop L’Oreal acquired more than 25 brands and increased their product portfolio by entering into different marketing segments.

Each brand contributed to L’Oreal long ERM strategies and their performance has been an increase in different segments. Refer below table MILLIONS % OF SALES 1,576 21 18. 4% 1,518 18. 5% Total for geographic zones 4,054 19. 5% Non-allocated* -577 -2. 8% Cosmetics branch total 3,477 16. 7% Brand strategy applied to counter competition In 2011, L’Oreal massively increased its digital marketing budget, but not at the expense of other marketing activities. In the wake of the economic collapse, L’Oreal has worked to offer beauty innovations at affordable prices -” and this strategy has helped to attract new customers.

Compared with its leading rivals globally . L’Oreal has performed very well . Milliner’s personal care division also posted double-digit increase; whilst Procter & Gamble lagged slightly behind. According to the 2012 results, the French firm saw net profit rise by 17. 6 percent to Euro 2. 87 billion. In the sass, L’Oreal used to generate the largest volume of sales from Europe, where the major portion used to come from France. But, a decade after, the situation started to change. The Branding Strategy of L’Oreal started to concentrate in the markets outside France.

The initiative proved to be successful and in the year 2004, the company generated 85% of its’ consolidated sales from the markets outside France. The L’Oreal Brand experienced success both in Asia and Latin America, even when the global economy was in a shaky position. In short, it can be said that, reason behind the success of Brand L’Oreal lies in the fact that the company succeeded in reaching out to the customers of different countries of the world, across different income ranges and cultural patterns. L’Oreal famous advertising slogan is “Because I’m worth it”.

In the mid sass, this was placed by “Because you’re worth it”. In late 2009, the slogan was changed again to “Because we’re worth it” following motivation analysis and work into consumer psychology of DRP. Maxim Torrent. The shift to “we” was made to create stronger consumer involvement in L’Oreal philosophy and lifestyle and provide more consumer satisfaction with L’Oreal products Failure of Brand strategies In the ASK, L’Oreal has faced criticism from FOCI regarding the truth of their advertising and marketing campaigns concerning the product performance of one of their mascara brands.

In July 2007, the British Advertising Standards treating Penelope Cruz, stating “it will make your eyelashes 60% longer. ” In fact, it only made the lashes look 60% bigger, by separating and thickening at the roots and by thickening the tips of the lashes. They also failed to state that the model was wearing false eyelashes Recommendations L’Oreal has to stick to its Brand personality of being sophisticated. Eradicate the usage of animal testing and bring in more customers by changing their perception on it. Stick to cosmetics and not venture into Insurance and diversify. Increase their presence in Middle East and African nations.

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