The conclusion

The semester's worth is finally realized.I must say for the most part I am pretty content. However B+ for the most demanding class which took more than enough effort is pretty hard to swallow. But hey life goes on, 2010 is about to conclude, though bummed by the value of this class, I am pretty optimistic about 2011.
Happy New Year!

L'Oreal

         

Chapter 4 -Market Environment ( NB this blog was intially tied into chapter 3 since MKG3 combined both chapters)

                                        

 L'Oreal Tailoring Asians

According to L'Oreal's research executive, the company uses Observation research to "decode exactly," what consumers are attracted to and their desire.In Japan L'Oreal a film about 20 volunteers ultimately leads"activate concentrate with unique texture," (web) in itsLancôme Genifique Youth collection. Also, L’Oreal’sobservation research leads the marketing team to discover other practice by its Asian consumers.For instance, it's been noted that South Korean womenbuy about25 cosmetic products ( 5 more than Japan )but almost doubles the purchasing habits of relatedproducts in the US and Europe.Overall, L’Oreal’s-"Tailing" technique appears to be an effective marketingresearch tool.

Chapter 8: Segmentation and Targetmarket

  L'Oreal's beauty products are mostly marketed to female consumers world wide. However, target market is further divided according to age group. For instance the " Youth Code" is positioned to intice the younger adults, where as "Revita Lift" is marketed to the more mature adults; the generation X to the baby-boomers. This strategy of  producing a product line gared towards demograhic is not only increasing sales turnover for L'Oreal,but it is also helping the company preform well against it's competitors.
     Furthermore, although L'Oreal's current strategy is effective, the company can have a stronger position  if (like professor Evans suggested in our Wednesday class) it market to men and the gay community. This will not only incease sales but also, L'Oreal might  enjoy comparative advantage in the competive market of the beauty industry.

Youth Code - Enter the New Age of Skincare: Gene Science

Chapter 11 : Developing and Mananging products

   After ten years of intensive research and development, L'Oreal is expected to launch a line of  products that have the gene " Adenosine" which the company claims will "Crack the Code of Youth." In the past L'Oreal has boost (with recognition) to be one to the top inovators and researcher in beauty and skin care products, but the company in it's 20 or so years of existence have never made such a bold until this past month with " Youth Code." When the " Youth Code" line launches in January 2011, I really hope it give those who are striving to be forever young the benefit they have been seeking for years.

Chp 21; Cusomer Relationship Management:

  In an effort to broaden the scope of it's luxury products, L'Oreal decides to implement a "company wide Customer-Relations-Management" to focus on it's cutomers with the"Pilot" starting in China. Also, L'Oreal is working with Siebel undera contract with Microsoft to create a database that stores cutomer information. This CRM approach is helping to establish greater customer loyalty due to more precise targeting and direct mail increase.Overall, L'Oreal is gaining an extensive view of customers through the

 web , email messaging and it's customer contact center.

Chapter 16:Integrated Marketing Communications; attracting the Gen Yers

 As time and season change so do people and what might work a decade ago will not have quite the same results today. With that in mind, L'Oreal's immediate Integrated Marketing Strategy has strong emphasis on personal selling which is dominating other markerting strategy's. Also. L'Oreal use of print media such as " Harper's Bazaar ans In Style" magazine is a proven effective advertising measure for the company. However, L'Oreal is not making effective use of internet and direct marketing and it's ad' campaigns are not drawing in it's target ( Gen Yers). As a result, according to a report in articlesolve.com, L'Oreal's SWAT team uncovered the disadvantages not emphasizing internet and direct marketing.
 Moreover, L'Oreal UK is in the  process of revising it's Integrated Marketing Communication and the improve "IMC" will have advertisements that will entice the younger generation to shop L'Oreal's products. Also, internet and direct selling will be integrated more with the strong an effective personal marketing.
 L'Oreal is remaking it's Integrated marketing communications to fit the youngster, but as the popular proverbs goes "If it's not broken don't fix it" because in an effort to rejuvenate younger faces, the company might very well loose the more "mature" faces.

Chapter 10 : Product concept

"L'Oreal: The Beauty of Global Branding"

    According to an article in  Bloomberg's Business Week, L'Oreal tops the cosmetic market   for global branding and brand recognition. The cosmetic giant knocks its competitors out of the park globally with its "New York"  Maybelline brand, which women aredrawn to because it's marketed under " L'Oreal"   . This strategy produced by  L'Oreal Chief Executive Lindsay Owen-Jones, has resulted in " decades" of double digit" growth.The cosmetic giant has successfully defy the odds of global branding in comparison to it's competitors by  "conveying the allure of different cultures through its many products" 
Moreover, L'Oreal is a huge multinational company with  an extensive product mix ranging in brand from Garnier to- Redken to- Lancome ;  different names but they are marketed under  global brand "L'Oreal".
 

Chapter 18 : Sales Promotion

 

   With the economy at a deficit and customers' confidence dwindling, companies like L'Oreal implement creative tactics to ppromote sales. Some of the measures used are price mark downs' and free gifts for specific purchases. L'Oreal's marketers also set a time limit on date restriction on these "bargains" and as a result consumers purchase these products thinking they are getting more a "buck." Another measure proven effective sales promotion for L'Oreal is online sales and promotion. Online sales with free shipping for discounted items. This measure however comes with special entries such as a code or are base on amount purchased.



Chapter 17:Advertising and Public Relations

Chapter 17:Advertising and Public Relations

Does Youth Really Comes in a Bottle?

 

 

According to an online article, L'Oreal suffered "A Public Storm" in 2007 for making false claims against it's products.L'Oreal claimed that it's mascara endorsed by Penelope Cruz "will extend lashes up to 60 %," but like with "Air brushing" miss Cruz was reportedly wearing false lashes. You cannot turn on the television nor read a magazine with out seeing these lash blasting mascaras and creams that will supposedly reclaim youthful skin. Fortunately , the multinational company have a strong Public Relations team in place to handle damage control and restore public  confidence.

That scenario did not stop L'Oreal from using famous faces to advertise it's cosmetics. On the contrary, the company uses more celebrities to endorse it's products, since most women idolizes people like Beyonce  and Charlize Theron and want to look like them. Youth may not come in a bottle but L'O real sure knows how to make it look believable. After all everlasting skin beauty and youth can be yours ", because You're Worth it."

Chapter 15: Retailing- L'Oreal @ Target

L'Oreal is known as one of the leading multinational cosmetic giant. However,the company have a lot of catching up to do in the retail field, with only two retail stores; one in Beverly Center, Los Angeles and another in Westfarms mall, Connecticut. According to BNET.com, L'Oreal opened these two stores not to necessarily to become a part of the retail market, but to find out more about customers buying habit.

    Since L'Oreal's two retail stores are not in New York I decided to window shop at Target ( a popular discount store) to see how L'Oreal's price and promotion translates to the average buyer and who the companyis trying to trying to target in relation to the products on the store shelves.
Upon my visit to Target, I see a small selection of products on display in
comparison to the many different brands own by L'Oreal. Also, the prices are pocket friendly with mark downs.This shows that although L'Oreal is not involve in the direct retail process, the company influences the retail mix in relation to the reaction of customers.For example, L'Oreal's "Lancome" collection at Macys range in price from $59- $98,where Target has" Revitalift" for $11.99 after a $2.55 mark down. This shows that the prices are base on L'Oreal's target market, and merchants retail mix. Moreover, L'Oreal is definitely carrying out it's mission of beautifying the world
no matter their income level.Furthermore, L'Oreal should stick to manufacturing and leave the retailing to department / discount stores, because this approach might seem a bit discriminatory.Because I live in Brooklyn and shop at discount stores does not mean that I cannot afford "luxury" cosmetics. After all, everyone loves a good bargain especially in this market.

Chapter 6: Consumer Decision Making

 Companies like L'Oreal realize that consumers have different driving force that influence their buying habits which can ultimately "make or break" the success of  their businesses. L'Oreal's motto " Because you're worth it," not only adds to brand recognition, but also motivates and coax women into buying it's age-defying products. Inaddition L'Oreal skillfully incorporates "Because you're worth it in every promotion and on most products and packaging. This is an  ingenious motivational tool which L'Oreal has been using to coax women into buying a product with no surety of  results.After all who isn't worth it?

Corporate Irresponsibility : McDonald's- Not Lovin It

  McDonald's is known globally for it's affordable ( and tasty) Burgers, Fries and Shakes and ketchup, but the  fast food giant is not keeping up with it's slogan " I'm lovin it." Records show that the County Department of Health inspection of four Mcdonald's in LAX  found many violations of  health and safety codes. One such violation is condemned food. McDonald's actually store and most likely prepare and serve expired goods to customers and still have the audacity to charge tax. McDonald's is a famous name around the world and another of it's wellknown slogan suggest," what you want is what you get." So does this also translate that the cutomers in different parts of the world who reportedly took ill after ingesting food from McDolnald's and those who reported have bitten into needles actually wanted it? No! This is   negligent and irresponsible corporate behavior of McDonald's. The situation is such that the resturant workers have filed claims with state and federal agencies, reporting dangerous working conditions and violations of labor laws. Like the popular proverb goes," it starts at home," should  McDonald's take care of it's employees and provide safe working conditions for them , they will more  likely  care for the job and extend the same courtesy to customer; and more people will start say "I'M LOVIN IT."

Chapter 5: Developing A Global Vision

                 

    L'Oreal is known as one the world's most dominant multination markets in Europe,China,India and the US just to name a few. L'Oreal has a philosophy that every person no matter their creed, culture or race relates to or belives:

Because You're Worth It( in Chineese)

Because You're Worth it." This slogan is recognize world wide by every man or women and validates why one should invest in product to enhance beauty; " Because You're Worth it." L'Oreal also believes in consistency and in an effort to keep packaging consistent, it adopted the intenational version of it's revtalift that has a side dispenser that enables the product to flow evenly into the hands verses the middle dipenser which can be a bit messy for some users.

Person -to-Person sales in Rural areas

In contrast L'Oreal does not believe in " one -size-fits-all" strategy for success, so marketers think globally and act locally in order to promote it's Anti-aging/ Revitalift creams and capitalize on opportunities.For instance, L'O real sees the rural population of Brazil as a huge market that depends heavily on person-to -person sale so they are putting teams in place to cover those target areas, while providing the more sophisticated with over the top advertising.

Ads' for the mall shoppers/ more sophisticated

L'Oreal says:"Because You're Worth It." Question is,do you think the product is worth buying?

                      

                  

Country of Origin

-Sweater: China
- Knit top: India
-Tank top:India
-Bra        :NA
-Pants    :India
-Under-wear:Indonesia
   

Chapter 3:Ethics and Social Responsibility

 As one of the 100 most sustainable companies in the world and a leader in personal goods, L'Oreal established a code of Business Ethics for it's managers and suppliers to follow.Also, there are guidelines in place for directors to follow when when dealing with employees concern and to ensure their safety. Moreover, the  information is open to all employees and accessible to visually impaired employees.

L'Oreal is also considering how the community at large can be affected
by it's day-to-day operations beyond product and pricing.lL'Oreal is taking the innitiave to conserve water( the best way a business can)and is using low pressure steam instead of hot water for water .  In an effort to increase Eco-efficiency , the company has a strong water conservation programe which resulted in a 13.7% reduction in water usage per finish product. L'Oreal 's  interest in environmental concerns has a lot to do with sustainable development and the benefit of the society which is adopting a greener lifestyle.This is why the company is implementing an Environmental,Health ans safety policy, for  reducing  Green- house gas emissions,water,environmental incidents ,proper waste management and recycling.Biodiversity is also a part of L'Oreal's sustainable innovation commitments.

 L'Oreal's Social Responsibility

Strategic Planning: Loreal's Straegic Planning.



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L'OREAL'S Collagen filler
Verses



One of  L'Oreals strategy is to have  impeccable advertising in an effort to increase sales. Thus, the company puts the face of famous female celebrety of all shades to coax women into buying cosmetics. This sounds good but with soo many competitors L'Oreal needs more than just airbrushed faces to increase sales.They need to brand a product with a "miracle" ingredient like there biggest age defying competitor  KleinBecker, (the makers Stri-Vectin).This brings me to the topic of "innovative" since L'Oreal is striving to be the most innovative Klein Becker is certain leading with what was once introduced as a strech mark reducer, to a leading wrinkle reducer.Well so they claim.



Chapter 2: Strategic Planning

  In order to better meet the goals of the company ,L'Oreal have certain strategic planning in place."Customer satisfaction," tops the agenda since they are the driving force behind the company's success.They hope to accomplish this by producing a wide variety of products at different price range, to cater to the demands of women, from the youthful to the aging..Also ,the company keeps up with current trend and sometimes set trend to attract consumers.The way leaders handle and run the business( Control of Company) is vital to the prosperity of the company.Duties are delegated to Board members and they are obligated to act in care and attention in carrying out such duties.Like many companies, L'Oreal is embarking on an existing plan to market their products worldwide.They formulate products to cater to the diversity of women around the world, through research and development.The main selling tool for most companies is advertising.This is why L'Oreal have  "Impeccable Advertising" where they use the face of well known celebrities who best exude their vision through mass media.The average woman relate to the famous personality their every day lives, which drives up sales.
In a nutshell, L'Oreal's strategic planning is built on ,Customer Satisfaction,Control of Company, World Wide Marketing and Impeccable Advertising which ultimately lead to the success of the company.

Chapter 1: Mission Statement;Driving by the World's Quest for Beauty and Preservation

Driven by the world's quest for beauty, L'Oreal's believes that cosmetics are a form of self expression and personal beauty and are committed  in putting their expertise and research resources to work for both men and women world wide. L'Oreal's statement of values includes,striving for excellence, a passion for adventure,enrichment through diversity,valuing individual talent and leading innovation in beauty.
   The mention of "leading innovation in beauty" reminds me of a discussion we had in class on how consumers response to certain products give company's innovative ideas. One example of such product is Stri-Vectin; not a product of L'Oreal but lends to the idea of "leading innovation in beauty" because it started out as stretch mark reducer and is now deemed as the leading wrinkle reducer.Furthermore, the company believes in Philanthropy and started an initiative in L'Oreal South Africa " Hairdressers of the world against AIDS" with hopes of partnering with over 400,000 salons world wide for life preservation. Also, L'Oreal is committed to achieve excellence in safety,health and environmental performance. When we hear the word cosmetics women come to mind and L'Oreal not only want to satisfy the female quest for beauty but the company is also working on promoting women in research fields.

L'Oreal: A Brief History .

L'Oreal started in France and was incoporated in 1939 and is known as one of the largest companies in France and the world's largest manufacturer of high quality cosmetics and perfumes such as, Lancome and Ambre Solaire . In 1907, Eugene Schueller a young chemist  had an idea which led him to creat the first synthetic hair dye in his kitchen at night and sell them to salons during the day.In 1912 , the company extended it's sales to Austria, Holland and Italy and a host of other countries including USA, Brazil, Peru and Bolivia. By the end of world war 1 when short hair styles were the rage, L'Oreal's hair products captured the market and t.v icons such as Jean Harlow and Mae West pave the way for blond hair and their bleach product such L'Oreal Blanc sold well. Further more, L'Oreal is known for house hold  products such as, Soft Sheen/Carson products ( US base business segment company) and perfume brands like Ralph Lauren. In addition, L'Oreal USA which is a subsidiary Company, was incorporated in 1953 , Frederic Roze (president and CEO), Vincent Serpio (SVP operations) and Arnold Legair as CFO is rated number 1 in cosmetics.