PRESENTED BY

INGYIN PHYU , THUTA , SWE LEI AUNG , TUN PA PA

NWAY , MAY MYAT NOE Oo
L'Oréal
L'Oréal is a French personal care company
headquartered in Clichy, Hauts-de-
Seine, with a registered office in Paris. It is
the world's largest cosmetics company and
has developed activities in the field,
concentrating on hair color, skin care, sun
protection, make-up, perfume, and hair care. EUGENE SCHUELLER
In the early 20th century, Eugene Paul Louis schueller (1881– (1881-1957)
1957), a young French chemist, developed a hair dye formula
called Oréale. Schueller formulated and manufactured his own
products, which he then decided to sell
to Parisian hairdressers. On 31 July 1909, Schueller registered his
company, the Société Française de Teintures Inoffensives pour
Cheveux (Safe Hair Dye Company of France). The guiding
principles of the company, which eventually became L'Oréal,
were research and innovation in the field of beauty. In 1920, the
company employed three chemists; the team continued to grow
with 100 by the year 1950, and 1,000 by the year 1984; as
• L'Oréal got its start in the hair-color business, but
the company soon branched out into other
cleansing and beauty products. L'Oréal currently
markets over 500 brands and thousands of
individual products in all sectors of the beauty
business: hair color, permanents, hair styling, body
and skincare, cleansers, makeup, and fragrance. The
company's products are found in a wide variety of L’oreal advertisement (1914)
distribution channels, from hair salons and
perfumeries to supermarkets, health/beauty
outlets, pharmacies, and direct mail.

L’oreal advertisement
(1915)
Vision and mission

Vision and Mission: is to offer each

and every person around the world
the best of beauty in terms of quality,
efficacy, safety, sincerity and
responsibility to satisfy all beauty
needs and desires in their infinite
diversity.

Motto: “Because We're Worth It” has

since become symbolic with
MOTTO
empowering women of all ages and
backgrounds to believe in their
beauty and sense of worth.
 Strategic objective: is
to provide tailored, inclusive
beauty solutions that meet
specific, individual aspirations.
L'Oréal's strategy in this regard
is based on careful attention to
consumers and a deep respect
for their differing needs,
lifestyles, desires and traditions.

Future goals: By 2030, we will help 100,000

people from disadvantaged communities gain
access to employment. By 2030, 3 million people
will benefit from our brands' social engagement
programs. By 2022, the Product Environmental
and Social Labelling system will apply to all the
Group's rinse-off products.
 Industry Consumer goods

Founded 30 of July Operation income $7.45billion

1909;114years ago

Founder Eugene Schueller Net income $4.59billion

Headquarters Clichy, France

Total assets $43.81billion
Area served Worldwide

Products Cosmetics, skincare, Total equity $29.42billion

perfume, hair color,
hair care
Number of 88,000 (2019)
Revenue $38.26billion employees
Acquisitions
L'Oréal currently owns 36 brands and
continues to grow. As of October 4, 2021,
Sanofi S.A. is a French
the company registered 497 patents. multinational
pharmaceutical and
L'Oréal purchased Synthélabo in 1973 to healthcare company
headquartered in Paris,
pursue its ambitions in the pharmaceutical France. Originally, the
corporation was established
in 1973 and merged with
field. Synthélabo merged with Sanofi in Synthélabo in 1999 to form
Sanofi-Synthélabo.
1999 to become Sanofi-Synthelabo.Sanofi-
Synthélabo merged with Aventis in 2004 to
become Sanofi-Aventis.On 17 March 2006,
L'Oréal purchased cosmetics company The
Body Shop for $562 million.
In May 2008, L'Oréal acquired YSL Beauté for
$1.8 billion.
In January 2014, L'Oréal finalized the
acquisition of major Chinese beauty brand
Magic Holdings for $840 million.
In February 2014, L'Oréal
agreed to buy back 8% of its Nestlé's participation in L'Oréal has been
beneficial to both companies for many
shares for €3.4billion years. L'Oréal knows that it has the full
from Nestle. As a result, support of its two biggest shareholders,
Nestlé and the Bettencourt family, whilst
Nestlé's stake in L'Oréal was
Nestlé has benefited from very good
reduced from 29.4% to returns on its investment over the long
23.29%, while the Bettencourt term. Moreover, Nestlé and L'Oréal have
benefited from their cooperation through
Meyers family's stake two successful joint ventures – Galderma
increased from 30.6% to and Laboratoires Innéov as well as joint
On December 7, 2021, Nestlé
efforts in research
agreed to. sell 22.26 million
33.2%. Nestlé has owned a
L'Oréal shares to L'Oréal. L'Oréal
stake in L'Oreal since 1974, will cancel the repurchased
shares. Following the
when it bought into the transaction, Nestlé will own
company at the request of 20.1% of L'Oréal and remains
fully supportive of the
Liliane Bettencourt, the company's value creation
daughter of the founder of strategy.
In February
2014, Shiseido agreed to sell its
Carita and Decléor brands to
L'Oréal for €227.5 million
(US$312.93 million (2014).
In June 2014, L'Oréal agreed to
acquire NYX cosmetics for an
undisclosed price, bolstering its
makeup offerings in North
America, where its consumer-
products unit has faltered.
In September 2014, L'Oréal
announced it had agreed to
purchase Brazilian hair care
company Niely Cosmeticos
In September 2014, L'Oréal
acquired the multi-cultural
brand Carol's Daughter.

In July 2016, L'Oréal agreed

to acquire IT Cosmetics for
$1.2 billion.

In March 2018, L'Oréal acquired

the beauty augmented reality
company ModiFace.
In May 2018, L'Oréal
announced a new
beauty and fragrance
partnership
with Velentino.
In December 2020, L'Oréal
announced signing of an
agreement for the acquisition
of Takami Co, a Japanese
company that markets the a
premium skincare brand
Takami, particularly famous for
its iconic product, the Skin Peel
pre-serum.
December 2021, L'Oréal announced the
acquisition of the vegan skincare brand
Youth to the People.
In April 2023, L'Oréal purchased Australian luxury cosmetics
brand Aesop for US$2.53 billion. In August 2023, it was
announced the acquisition had been completed.
Since 1997, L'Oréal has been an official partner of The
Cannes Film Festival. In the years of L'Oréal sponsorship,
many L'Oréal ambassadors walked the red carpet of
the Cannes Film Festival. In 2017, L'Oréal beauty
ambassadors, including Juianne Moore, Susan
Sarandon,Andie MacDowell, and Eva Longoria, were
responsible for the film selection for the outdoor cinema
during the Cannes Film Festival.
L'Oréal’s Advertising slogan, "Because I'm worth
it", was created by a 23-year-old English art
director and introduced in 1973 by the model
and actress Joanne Dusseau. In the mid-2000s,
this was replaced by "Because you're worth it". In
late-2009, the slogan was changed again to
"Because we're worth it".
In November 2020, Chief digital Officer
,Lubomira Rochet reported in a video conference
of the growing importance of e-commerce for
the company, remarking that e-commerce makes
24% of their turnover in the third quarter of the
year. Rochet stated as well that this 24% of the
turnover "made it possible to offset 50% of the
losses due to the closing of physical stores this
year".
In 2023, the L'Oréal Foundation and UNESCO
presented a medal of honor and a financial
endowment to three women researchers who
had to leave their countries, and whose courage,
resilience and commitment to science are
considered inspriing.
Stockholders
As of 31 December 2020
Breakdown of share ownership: 33.17% by the Bettencourt family,
23.20% by Nestle, 29.6% by international institutional investors, 7.87%
by French institutional investors, 4.59% by individual shareholders,
1.57% by employees.
Corporate governance
Jean-Paul Agon is the Chairman and Nicolas Hieronimus the chief
executive of L'Oréal. Francoise Bettencourt Meyers and Paul Bukcke are
vice chairmen of the board of directors.
Business figures
In 2003, L'Oréal announced its 19th consecutive year of double-
digit growth. Its consolidated sales were €14.029 bn and net
profit was €1.653 bn. 96.7% of sales derived from cosmetic
activities and 2.5% from dermatological activities. L'Oréal has
operations in over 130 countries, employing 50,500 people, 24%
of which work in France. 3.3% of consolidated sales is invested in
research and development, which accounts for 2,900 of its
employees. In 2003, it applied for 515 patents. It operates
42 manufacturing plants throughout the world, which employ
•Cosmetics sales by division breakdown: 54.8% from consumer products at €7.506 bn, 25.1% from
14,000 people.
luxury products at €3.441 bn, 13.9% from professional products at €1.9 bn, and 5.5% from active
cosmetics at €0.749 bn.
•Cosmetic sales by geographic zone breakdown: 52.7% from Western Europe at €7.221 bn, 27.6%
from North America at €3.784 bn, 19.7% from rest of the world at €2.699 bn.
In 2007, L'Oréal was ranked 353 in the Fortune Global 500.The
company had earned $2,585 million on sales of $19,811 million.
There were 60,850 employees.[
By 19 March 2016, the company had a share value of 89,542
million euros, distributed in 562,983,348 shares. Its reported
operating profit in 2016 was €4.54 bn, based on revenue of €25.8
bn.
Financial Data in $
Billion
2013 2014 2015 2016 2017 2018 2019 2020 2021
Revenue 22.977 22.532 25.257 25.837 26.024 26.937 29.874 27.992 32.288
Net
2.958 4.910 3.297 3.106 3.586 3.895 3.750 3.563 4.597
income
Assets 31.298 32.063 33.711 35.630 35.339 38.458 43.810 43.607 43.013
Employe
77,452 78,611 82,881 89,331 82,606 86,030 87,974 85,392 85,412
es
Joint ventures and minority interests
L'Oréal holds 10.41% of the shares of Sanofi-Aventis, the world's
number three and Europe's number one pharmaceutical
company. The Laboratoires 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.
Marketing strategy and Marketing Mix

• Marketing Strategy of L'Oréal analyzes the brand with the

marketing mix framework which covers the 4Ps (Product, Price,
Place, Promotion). These business strategies, based on L'Oréal
marketing mix, help the brand succeed in the market. Let us
start the L'Oréal Marketing Strategy & Mix to understand its
product, pricing, advertising & distribution strategies:
• Quick Glance:
• Product Strategy
• Pricing Strategy
• Place and Distribution Strategy
• Promotional and Advertising Strategy
• L'Oréal Product Strategy:
• The product strategy and mix in L'Oréal marketing strategy can be
explained as follows:
• L'Oréal has a wide portfolio of brands under them. The marketing
mix product strategy can be understood by analysing their entire
portfolio. They produce products related to all beauty and cosmetics
under four major divisions namely
• • L'Oréal Luxe : Kiehl’s, Lancôme, Yves Saint Laurent, Ralph Lauren,
Giorgio Armani, Diesel, Clarisonic
• • Consumer Products division : L'Oréal Paris, Garnier, Maybelline New
York, Shampoo
• • Active Cosmetics division: Vichy, La Roche-Posay. Sanoflore
• • Professional Products division : L'Oréal Professionnel Paris,
Kerastase, Matrix
• • The Body Shop
• Under these product divisions L'Oréal have products like eye-liner,
mascara, eye shadow, nail polish, nail polish remover, lipstick, lip-
liner, lip gloss, cleanser, foundation, concealer, blush for face, hair
color in various shades, hair care, shampoos, conditioner, toners, hair
All these are produced and innovated
based on customer preferences and
needs. These are available in different
sizes and price ranges.
L'Oréal products are properly tested
as per international testing standards
without harming any animals in the
process.
Below is the pricing strategy in L'Oréal marketing strategy:
L'Oréal is one of the leading global cosmetic brands. The consumer
products division brands are distributed in retail channels making it
available to the mass market.
As a result they earn huge profits from this division. The professional
products are available at salons worldwide so when a customer visits
these salons they are ready to pay for these products as they are not
priced very high. The Luxe division products are available at
supermarkets, cosmetics stores, own brand outlets and even online.
However, these products have a premium price and customers are
even ready to pay a premium for these products owing to quality and
reliability over competitors. L'Oréal prefers to maintain value based
pricing strategies for most of their products. L'Oréal is trying to price
the products in India comparable to those worldwide by increasing the
number of stock keeping units. The brand offers high quality products
at a marginal premium as compared to the local brands. L'Oréal always
brings about innovations across their various product divisions thereby
List of Competitors of L’Oreal
 2. Christian Dior:
Christian Dior was a French 3. Lakme:
fashion designer who Lakme was the first Indian
established one of the world’s beauty brand to launch its
top fashion house with the cosmetics in India. Lakme
same name in 1946. The fashion Cosmetics was established in
house gained critical acclaim 1952 by MrJRD Tata to cater the
with its first fashion collection needs of Indian women and
for spring-summer 1947 which avoid them from buying
received several accolades and 1. Revlon: international brands. Its name
achieved a phenomenal success. The cosmetic company Revlon originated from the name of the
Today Christian Dior designs was founded in the year 1932 goddess, Lakshmi who is known
and retails various luxury goods and is based in the city of New for her beauty.
for its target customers. York. Its founders were Charles
Revson, Joseph and Charles
Lachman and had its origin from
the period of Great Depression.
The personal care company has
wide range of products ranging
from cosmetic colours, hair
colours and beauty products.
 4. Chanel:
Chanel is a luxurious fashion
brand from France which is
known for its haute couture and
ready-to wear clothing line along
with other premium products
such as watches, perfumes,
handbags, sunglasses and
designer jewellery. The brand is
highly renowned across the world
and wore by the high socio-
economic class of people as a
symbol of luxury and elitism. It
was founded by Gabrielle Chanel,
5. Maybelline: famously known as Coco Chanel 6. Avon:
in 1909 and was revolutionary in
Maybelline is a makeup its designs as it freed the women Found in 1886, Avon is
brand based out of US of 20th century from the corseted one of the well-known
and has its operations dresses they were wearing to
more comfortable and naturally
and largest cosmetic
throughout the world. It flattering dresses. companies in the world.
belongs to the French With an annual revenue
cosmetic company known of 9+ billion USD, Avon is
as L’Oréal. In 1915, a one of the largest direct
young entrepreneur sellers in the world. It has
created the Maybelline serves its valued
company. customers across 100
different countries.
 8. Lancôme:
Lancôme is a French
luxury perfume company
which specializes in
skincare, perfume and
makeup. This company
aims toward the higher
7. Estée Lauder: end customers and have
Estee Lauder is a company
a niche market share.
based in the United States Lancôme is a part of
of America which deals in L’Oreal and exports
diverse sectors of Haircare, products internationally.
Fragrance, makeup and
Skincare under various
labels. It was founded by
Estee Lauder and her
husband in the year 1946
and is headquartered at
General Motors Building in
New York. The brand was
born due to the founder’s
aspiration to be an actress
but beauty business was
something that the
founder was made up of.
 10. Unilever:
Unilever is one of the
9. Procter and biggest FMCG (fast
moving consumer
Gamble: goods) company in the
world. It is a British-
Procter and Dutch company co
Gamble is one headquartered in
Rotterdam and London.
of the biggest Unilever has more than
competitors of 400 brands and
operates in more than
L'Oréal. 190 countries with a
turnover of €50+
billion
 11. Olay:
Olay is one of the
most selling brand of
Procter & Gamble.
Olay is a skin care
line previously Oil of
Olay. It originated in
south Africa and has
spread worldwide by
now.