...What are L’Oreal’s major barriers to pursuing a global strategy ? Overall L’Oréal’s decision to fight the European shampoo battle required considerable coordination between company headquarters and the subsidiaries Balancing the global strategy for Elséve with different market characteristics and particularities was going to be one of the most crucial issues for success. Competition had traditionally been based on price, which made margins relatively narrow. The result was a rather lucklustre market where brands were unable to differentiate themselves in the eyes of the consumer or position themselves to stand out from the rest. The global strategy had to be implemented in the different markets, bearing in mind that each of those markets had its own special characteristics and quirks. In L’Oréals case, the differences arose from the nature of hair itself –hair type, length, appearance and image, among other things- and from the way shampoos were used- washing frequency, amount used, use of one shampoo by one or more members of the same family, use of conditioners etc. The implementation of the global strategy could not overlook other aspects such as the presence of the Elséve brand and its competitive position in the different countries or the resource L’Oréal had in the different markets. France: In France the penetration rate of conditioners was the lowest in Europe. Greater demand was being generated for more sophisticated products with more...
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...Table of Contents Executive summary 2 1.0 Introduction 3 2.0 Value proposition 4 3.0 Customer Centred Organisation 4 4.0 Customer Pyramid 6 5.0 Customer Relationship Marketing and CRM programs applied by L’Oreal. 8 6.0 Service Quality Gap in L’Oreal 9 6.1 Knowledge Gap 10 6.2 Policy Gap 10 6.3 Delivery Gap 11 6.4 Communication Gap 12 6.5 Customer Gap 12 7.0 Conclusion 13 8.0 Recommendation 13 9.0 Referencing 14 Executive summary As the corporate world is expanding itself throughout the globe it is also evolving at the same time. Expectations toward customers today have increase and the company have to adapt themselves in the ever changing environment of the 21st century. The challenges that are being placed in front of the business have also become more complex compare to previous centuries. This is because of globalization that has open up so much possibility in every aspect of the corporate world. This assignment is overall about Customer Value and Organisation has enabled them to understand the needs and wants. This report also highlights how the organisation can improve in terms of making more delighted customers. Through this way organisation will be able to retain customer loyalty for the long run. The report also evaluates the range and concludes that L’Oreal’s challenge in the current market needs to be able to understand the demand for a certain product. The major shortcomings are not being able to understand what are consumer needs,...
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...What are the challenges facing L´Oreal Management? L’Oreal is a company that has lot subsidiaries around the world. So, they need to improve all tools that have at hand, because how it is a big company, they need to share information quickly to take advantage of the market trends and the implementation of strategies. So, the challenges more evident that show L’Oreal are the following: * To create a global knowledge management and collaboration platform. * To reduce cost of internet implementation. * To provide international platform for e-business that can be used to quickly create websites, publishing sites, custom e-commerce sites. * To share information and collaborate to make a common strategy across the group. * To create a fluent communication among all divisions that permit to improve the performance of a group. * To work with all units available to improve decisions. Make a list of all the functionalities of M@sternet described in the video. What kind of a knowledge management system is M@sternet? This system present some function, but we can identify the following functionalities: 1. A place where people share information. 2. A place where people realize discussions. 3. A place where people work jointly with the information gave by system. This tools help to be more efficient, thanks to all information is shared around all divisions. Also, managers can manage the knowledge behavior. This system uses “tacit knowledge”, because...
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...Overview Country: France Industry: Cosmetics/Retail Customer Profile L’Oréal is the global brand leader for cosmetics, luxury goods, and skin care products distributing in 130 countries on five continents. With 18 global brands, L’Oréal recorded €14,533 million (U.S. $17,589 million) sales in 2005. Business Situation L’Oreal decided to implement a company-wide customer relationship management (CRM) system. It wanted to combine the product-centric marketing approach with a greater focus on the customer. Solution Working with Siebel, and advised on the architecture by Microsoft® Services, L’Oréal standardised on Siebel CRM and Analytics software running on Microsoft Windows Server SystemTM Engineered and Microsoft SQL ServerTM 2005 database. Benefits ■ Strengthens customer brand loyalty ■ Direct mail costs down up to 57 per cent ■ Targeting gives response rate of up to 62 per cent ■ Consistent view of customer across multiple channels ■ Fast time to market for new campaigns | | |“With the Siebel solution running on Microsoft Windows, we achieved a 57 per cent decrease in the volume of direct mail on one promotion. Through more accurate targeting, we achieved a remarkable 62 per cent response rate.” Daniela Giacchetti, Head Customer Strategy Officer, L’Oréal | | | | | |L’Oréal, the world’s largest global beauty, skin care, and cosmetics company wanted to broaden the | | ...
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...Company History: L'Oréal, one of the largest companies in France, is the world's largest manufacturer of high-quality cosmetics and perfumes, producing such well-known brands as Lancôme, Ambre Solaire, and Cacharel. Its total sales are &Dollar;2.4 billion ahead of those of its closest competitor, Unilerver, an more than double those of Revlon and Shiseido. It boasts a world-wide distribution network as well as the industry's highest research-and-development budget and the largest cosmetological laboratories in the world. L'Oréal's story begins in turn-of-the-century Paris, at a time when women of the demi-monde dyed their hair, their choice restricted to fiery red or coal black. In 1907, Eugène Schueller, a young chemist, began to concoct the first synthetic hair dyes by night in his kitchen and sell them to hair salons in the morning under the brand name Auréole. His strategy was successful; within two years he established the Société Francaise des Teintures Inoffensives pour Cheveux, which soon afterward became L'Oréal. In 1912, the company extended its sales to Austria, Holland and Italy and by 1920 its products were available in a total of 17 countries, including the United States, Brazil, Chile, Peru, Equador, Bolivia, and the Soviet Union, and in the Far East. At this stage, L'Oréal consisted of three research chemists and ten sales representatives. Schueller's timing had been singularly fortunate. The end of World War I was celebrated by the Jazz Age, when short hairstyles...
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...It's here. Finally. Kiehl's, the venerable - and extraordinarily popular - Old World apothecary with New World style has arrived with its first free-standing store in Canada, unique, word-of-mouth marketing strategy in tow. The chain's 152-year-old flagship store in New York City is known for having waiting lines of customers. They're drawn by the New York-based retailer's signature look combining a line of approximately 150 custom-manufactured, Kiehl's-branded products, utilitarian packaging, elegant store design and its reputation for great customer service. While the environment at a Kiehl's store is consciously non-solicitous, knowledgeable help is always immediately at hand. "It's a logical step for us," says Kristin Armstrong, VP/GM, Kiehl's Since 1851, of the move to Canada. She adds that the only reason the chain didn't come up sooner was it hadn't yet completed its consumer research. That research indicated Canadians already knew some basic facts about Kiehl's, such as its origins in New York and its reliance on natural ingredients. "When we asked, 'What would you like to see in the future?' almost every single group said that they would love to see a Kiehl's free-standing store. It reassured us that that was the right thing to do." The Canadian store opened in Toronto on June 20. Launching with a splash, Kiehl's sampled at the June 22 MuchMusic Video Awards pre-party where it handed out 500 gift bags. An official launch event on July 16 will feature the presentation...
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...Chiến lược marketing toàn cầu GVHD: Th.S Quách Thị Bửu Châu MỤC LỤC MỤC LỤC .............................................................................................................. 2 LỜI MỞ ĐẦU ........................................................................................................ 3 CHƢƠNG I : TỔNG QUAN VỀ TẬP ĐOÀN L’ORÉAL ................................... 4 I/ Tập đoàn L’Oreal .......................................................................................... 5 II/ Giá trị thương hiệu........................................................................................ 6 III/ Chiến lược kinh doanh quốc tế của L’Oréal .................................................. 7 CHƢƠNG II: L’ORÉAL TẠI TRUNG QUỐC ................................................... 9 I/ Chiến lược xâm nhập thị trường Trung Quốc của L’Oréal ............................ 10 II/ Chiến lược marketing quốc tế của L’Oréal................................................... 11 1/ Chiến lược sản phẩm............................................................................... 12 2/ Chiến lược giá......................................................................................... 14 3/ Chiến lược phân phối .............................................................................. 15 4/ Chiến lược chiêu thị ................................................................................ 16 CHƢƠNG III: L’ORÉAL TẠI VƢƠNG QUỐC ANH .....................................
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...L'Oreal: Knowledge Management Using Microsoft SharePoint. Hand in 22 April 2015 Tags: Global brand coordination; sharing business knowledge; collaboration and coordination of effort worldwide; enabling a single community; ease of integration with desktop MS Office. Summary L'Oreal decided to use Microsoft SharePoint server to create a global knowledge management and collaboration platform. The system runs on a corporate intranet called M@sternet that spans the globe and coordinates the work of hundreds of teams in over 150 subsidiaries. URL:http://www.youtube.com/watch?v=8MvWkDXFz0w&NR= Case "The L'Oreal Group is the world's largest cosmetics and beauty company. It is headquartered in the Paris suburb of Clichy, Hauts-de-Seine, France. 96% of L'Oreal revenue is generated from cosmetics, from hair colour products to skin care, sun protection, make-up, perfumes and hair care. L'Oreal also is active in the dermatological and pharmaceutical fields. The company was founded in 1907 by Eugene Schueller, a young French chemist, who developed an innovative hair-colour formula. In 1920, the small company employed three chemists. By 1950, the research teams were 100 strong; that number reached 1,000 by 1984, and is nearly 2,000 today. While L'Oreal got its start in the hair-colour business, the company soon branched out into other cleansing and beauty products. L'Oreal currently markets over 500 brands and many thousands of individual products in all sectors of the beauty business:...
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...L’Oreal USA: Does Looks Really Matter in the Cosmetics Industry? Taja Gregory University of Mary Hardin Baylor L’Oreal is a multimillion dollar cosmetics company; it is also associated with other brands such as Ralph Lauren and Giorgio Armani. L’Oreal is particularly interested in employees that are enthusiastic about fashion and beauty, posse’s customer service abilities just to name a few (O’Rourke, J. pg. 357). In Macy’s in San Jose, CA the manager Elysa Yanowitz was with the GM John Wiswall in the fall of 1997 when he saw a employee whom was middle eastern and not attractive to him or did not fit the body type that he would like to see working and representing L’Oreal and request that Mrs. Yanowitz get rid of her and hire someone more attractive or hot. When he returned a few weeks later he discovered that she was not fired as he had order to be done. He demanded to know why and Elysa stated that she could not fire her without probable cause, and she was one of the top selling employees there. Wiswall got upset and began to retaliate against Elysa by soliciting complaints and in the complaint they stated she maintained a dictorial style of leadership and was disliked by her subordinates (O’Rourke, J. pg. 355). He also went as far as to audit her expense reports and prepare memos about her performance. She was then told she was a liability and was making too many mistakes. Due to this it caused a lot of stress on Elysa and it began to affect her performance...
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...Whispers from within the multi-billion pound luxury goods sector suggests that the Avon lady is about to be taken over. For donkey's years the catchphrase 'Avon calling', accompanied by door chimes, has been associated with sales reps who went from door-to-door hawking the US cosmetic giant's products. It has been a highly lucrative business for many 'local' agents and Sunderland-based Debbie Davis recently became the first Avon rep to earn more than £1million by knocking on doors. Avon Products Inc's shares have been in strong demand in New York of late and improved a further 1.2 per cent to $33.33 early yesterday amid hot gossip that it is attracting the attention of several big industry players. L'Oreal, the world's largest cosmetics and beauty company, is rumoured to be lining up a cash offer in excess of $44 a share. More... Live market data {thisismoney.co.uk} Share tips round-up {thisismoney.co.uk} Canadian pension fund plan rival Potash Corporation bid Procter & Gamble and Anglo-Dutch giant Unilever, 20p off at 1794p, are both believed to be keeping a close eye on the Avon situation. Dove-to-Aviance beauty group Unilever recently agreed to acquire Alberto Culver, the world's sixth largest hair care manufacture, for £2.3billion, so looks to have enough on its plate. But dealers hear that chief executive Paul Polman could still be interested in Avon, whose boss Andrea Jung is one of the longest tenured female chief executives in the US. Recently boosted...
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...Tomas Bata University in Zlín Faculty of Management and Economics Presentation on The L’Oréal Group ( the company for beauty) Subject: English language Elaborated by: Sandra Antičová Group: I 21/F Introduction Good morning Ladies and Gentlemen. It’s a great pleasure to have the opportunity to adress such a distinquished audience. Firstly, I would like to introduce myself. My name is Sandra Anticova. I work as a representative in the L’Oréal Czech Republic subsidiary. Today I’m going to inform you about L’Oréal, its history, products, sales, structure and something about its owners and shareholders. Please interrupt me if there is something which needs clarifying. Otherwise, there’ll be time for discussion at the end of my short presentation. I think that now it is time to start. So, I would suggest that we begin with the history of the company. The history of the company In 1907, Eugéne Schueller, a young French chemist, developed an innovative hair-colour formula. He called this new, perfectly safe, hair duy „Aurelióne“ . With this, the history of L‘Oréal began. Eugéne Scheller formulated and manufactured his own products, which he then sold to Parisian hairdressers. In 1909, Schueller registred his own company, the „Société Francaise de Teintures Inoffensives pour Cheveux“, the future L‘Oréal...
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...Product: L’Oréal 1. What was the business strategy? As per the 2015 Global 100 index survey of the Most Sustainable Corporations in the World, L'Oréal stands in the 14th position with an overall sustainability score of 66.80%. In 2013, they launched a global sustainability program, “Sharing Beauty With All”, through which they aim to win 1 billion new consumers by the end of 2020 and also answer all the diverse beauty needs of men and women around the world. L’Oréal has also created a framework with four clear commitments to be achieved by the end of 2020 as follows: 1. Innovating Sustainably: The company pledges that 100 percent of products will have an environmental or social benefit. 2. Producing Sustainably: Carbon emissions in absolute terms, as well as water consumption and waste per finished product, will be cut by 60 percent. 3. Living Sustainably: They will help their consumers to make informed and sustainable lifestyle choices by setting up a product assessment tool to measure the environmental and social profile of all new products, and brands will share this information publicly. 4. Developing Sustainably: 100 percent of strategic suppliers will be evaluated on their social and environmental performance. 2. How does sustainability contribute to competitive differentiation? Sustainability is not only an environmental responsibility but it also includes social, ethical and governance factors like workplace and community relations - in addition...
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...Innovation- L’Oreal. INTRODUCTION In this essay I will propose an innovation audit for the cosmetic company L’Oreal. I will be acting as an innovation consultant and develop a proposal for conducting an innovation audit for the company. I will focus on the SWOT analysis of the company and analyse L’Oreal’s strengths, weaknesses, opportunities and threats. Then I will design a framework for conducting the innovation audit. My framework will relate to the company’s business activities and vision. The framework will also address the SWOT analysis that I have presented. I will then provide a description of my proposed research strategy , such as what type of data I will collect and how I will go about doing so. Then I will provide an outline of the key outputs that would arise from the innovation audit in the context of the proposed framework that I have provided. DESCRIPTION OF THE COMPANY For more than a century, L’Oreal has devoted itself solely to one business: beauty. L’Oreal(2012) The L’Oreal Group is the world's largest cosmetics and beauty company.(Jones, David 2010) L’Oreal has developed activities in the field of cosmetics. Concentrating on hair colour, skin care, sun protection, make-up, perfumes and hair care, the company is active in the dermatological, tissue engineering and pharmaceutical fields.L’Oreal has set itself the mission of offering all women and men worldwide the best of cosmetics innovation in terms of quality, efficacy and safety. It pursues this...
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...L’Oreal was developed by French chemist Eugene Schueller in 1907. The L’Oreal Group today markets over 500 brands and more than 2,000 products in the various sectors of the beauty business. Strategy: Reach higher by acquisition L’Oréal’s industrial production model has proved to be productive, extremely responsive, and particularly adapted to an objective of accelerated growth on the New Markets. Moto: “Never satisfied” Sir Lindsay Owen-Jones knows simply as “O-J” a great leader (surprisingly British) said “ I am never satisfied and never convinced we are winning. I try to convince my people we might not be” Strategy main point 1 – Growing portfolio of international brand “Cross Fertilization” Elegance – Italy / L’Oreal - France / New York Street smarts / Maybelline in China / Soft Sheen – Africa / L’Oreal excellence - India 2 - Reach every market and every segment (5 companies purchase in 6 years with a global branding with flexible strategy) 3 Always changing - Counter power in N.Y with independency, different set of mind, background and creativity. Weakness ; - Still struggling to enter Japanese (the 2nd cosmetic market in the world) - Sale decreasing in Europe. - Not clear how the company will be able to manage its ever growing stable upscale beauty business. # what is hot is always changing# - Stability based on one man, O.J Strength - Strong brands image - Flexibility in being present in all market segment - Proactive...
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...[pic] Executive Summary: In a populated hair color market L'Oreal Paris was keen to break out of the traditional industry rut to revitalize its hair color lines. The hair color industry and consumers are changing and going from old to young, from salons to homes. In this changing landscape L'Oreal should try to break the traditional rut by introducing new product lines that incorporate the trends in the market. Social media is an important tool in the process of developing and managing new product lines. L'Oreal should integrate social media from inception to market launch and integrate it within their Marketing strategy. They should use tools and platforms like Google Analytics, Youtube, Pinterest in process of devising push and pull strategies to then solve their overarching challenges of line extensions. Social media should also be continually use to optimize marketing strategy based on consumer feedback. Statement of Problem/Opportunities/Objective: L'Oreal was faced with analyzing the market trends in hair coloring segment, possible course of response from L'Oreal and social media integration for better marketing strategy. The overarching issue L'Oreal was facing was to understand how can they integrate social media into their marketing strategy for the new hair color product. The problem was further divided into following categories: Challenge #1- Trend or Fad?: The marketing team's first challenge was...
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