Till date, L'Oreal has been the world leader in the field of cosmetics. In recent years, the group saw its market share and reputation grow successfully through its development strategies built around two main areas: a policy of hyper-innovation and the creation of a broad portfolio of brands that are highly segmented.
The group owns many brands: L'Oreal Paris, Garnier, Jade/Maybelline, L'Oreal Professionnel, Kerastase, Lancome, Helena Rubinstein, Biotherm, Giorgio Armani perfumes, Ralph Lauren, Cacharel, Guy Laroche and Paloma Picasso, as well as Vichy, La Roche-Posay and Inneov.
Currently, the group is present in over 150 countries and operates numerous subsidiaries abroad. The group has introduced its products in particular markets, to maintain its leading position internationally, the group had to choose between a globalization strategy and the adaptation.
The L'Oreal group has opted for a globalization strategy with respect to its brands. In other words, all its products are universal. Identical in all respects, they convey the same image and assure consumers the same quality in the products, no matter the country they are sold in. The same products are available across the globe under the same banner and the same slogan.
In reality, the international strategy of the group L'Oreal is not so clear. Although the group has opted for a comprehensive and standardized marketing, the group also tries to follow a particular adaptive strategy through mergers and acquisitions to double the expansion in the foreign markets.
The communication strategy of the group remains one of its strengths leading to the conquest of international markets. The company's global communication strategy has the ability to differentiate and monopolize the advertising space.
To innovate, explore and identify new customers, L'Oreal is now seeking to diversify its revenue streams and expand the sphere of influence of its products. How has L'Oreal tried to conquer foreign markets with its overall approach?
Tags: L'Oreal communication strategy, L'Oreal Paris, emerging economies, new markets
[...] Mergers and acquisitions in Asia The rapid growth of L'Oreal lies in the acquisition of purchase of cosmetic brands, which it rebrands and accordingly changes the marketing strategy before launching them worldwide. L'Oreal has substantial interest in the Asian markets, especially those of the emerging countries. This interest is particularly evident through several takeovers of Asian brands such as Xiaohushi, Yue-Sai (Chinese brand) and Shu Uemura (Japanese brand). "Following the acquisition of the brand Xiaohushi late last year, this new acquisition confirms once again, the will of the L'Oreal group to accelerate its expansion into the Chinese market of strategic importance," said Lindsay Owen Jones, CEO. [...]
[...] Faced with this problem in United States, L'Oreal decided to focus on the marketing of cosmetic products for ethnic minorities. Studies showed that this market grew rapidly and its value reached $ 14.7 billion in 2008. So far cosmetics corresponding to ethnic minorities were mostly sold by African American companies. In the logic of parallel acquisition of its overall strategy, L'Oreal bought two of them: SoftSheen and Carson. To boost the supply of these new segments, L'Oreal created an Institute of Beauty descended from ethnic minorities. [...]
[...] Youcef Nabi, International Marketing Director of L'Oreal Paris, says that, of turnover of the group represents the research and development. The renewal rate of the products is very important and 20% of our turnover is achieved each year with new products.” In 1997, to boost its sales in Europe, L'Oreal decided to expand its business on the Internet by creating its own website. Subsequently, the Beauty Creators Club, which specializes in mail order, launched e-commerce sites to sell its products on the leading global cosmetics markets such as the United States, Germany and France. [...]
[...] In the context of overall strategy, the L'Oreal group has developed international marketing communications, broadcasting the same advertising campaigns in all countries where it operates. The visual communication remain the same in all countries, only the signature is adapted to the culture and language of each country. L'Oreal also benefits from another communicative force: its ambassadors. In contrast to consumer products where consumers are able to identify with the offer for luxury goods and cosmetics, adaptation is not a necessity as the brand awareness is enough to attract consumers. [...]
APA Style reference
For your bibliographyOnline reading
with our online readerContent validated
by our reading committee
