CASE ANALYSIS
GLOBAL BRAND,
LOCAL KNOWLEDGE
CONSUMER BEHAVIOR | SYNDICATE 13
LUPITA THANAYA - 29114322
ANNISA MULIASARI - 29114342
MELATI P. PUTRI - 29114355
DEA ANANDYA - 29114469
Founded in 1909,
L'Oreal coupled
innovation and
speed to market
with expansion of
its geographic and
consumer base.
“Launching new innovative
products on a regular basis
was key”
3,5%
2,7%
1,7%
“Science of beauty in a jar”
Leading player in the beauty and
skin-care market.
% of Revenue on R&D in 2010
€19.5 billion of 2010 sales
(half outside of Europe)
1907
EUGENE SCHUELLER
1957
FRANCOIS DALLE
1988
LINDSAY OWEN-JONES
Developed Aureole, a
hair-color formula.
Formulated and
manufactured his own hairdye product, sell to Parisian
hairdresser.
Initiating the concept of
selling beauty through
several channels. Perception
of “Parisian beauty as being
expensive and out of reach”
Focused on 5 core business
(hair color & care, skin care,
cosmetics, and fragrances).
“The firm had to
promote its national
brands to the rest of the
world.”
What is L’Oreal doing?
How are they executing this
strategy?
What are the trade-off of this
strategy?
66.000
130
employees
countries
130
38
5.7 billion
countries
factories
units
hair-coloring
hair-styling
fragrances
cosmetics
skincare
department stores
duty-free stores
retail stores
internet
Direct marketing
to professional
acquisition
1966
USA
CHILE
UNISA
GERMAN
JADE
2000
USA
Ethnic hair-care marketers
2003
CHINA
Top skin-care brand in China
2004
CHINA
Makeup and skin-care brand
manufacturing plant
Pune, India
add more
1999
Secured L’Oreal’s Asia presence Men Product
LOCAL CUSTOMER UNDERSTANDING
“People on different
continents have their
own specific needs,
habits, dreams, and
desires – so one
product, or even one
formula, does not fit all”
GEOCOSMETICS
created to understand consumers at local level
Study the beauty trends around the world and deliver the best product for that region.
“L'Oreal developed brands in the low-, mid-, and
high-ends which every brand has their own
brand policy.”
MASSTIGE
“Prestige for the masses”
Luxury or premium
products
Price points that filled
the gap between midmarket and superpremium products
L'Oreal acquired Maybelline
in 1996 for $768 million
Maybelline had lost focus, losing brand equity,
struggle to keep up with the rest of the market.
MARKETING STRATEGY
Improving products (Fast-dry Nail)
Moving the headquarter to New York
Boosted ad spending by 30% to $70 million
Brought back Maybelline’s slogan
“Maybe she’s born with it
Maybe it’s Maybelline”
Modernize the
advertisement
Video of
Christy Turlington
Was in
70
Countries by 1991
Sales grew
93%
From 1996 to 2002
REGIONALLY FOCUSED ROLLOUT
“2008; A key focus of his group would be to accelerate the geographic rollout of its brand in
new high-growth markets by tailoring product performance and price to local needs.”
– L’Oreal’s President of Consumer Products.
L’Oreal did not use the
direct-sales approach 
hired personal beauty
advisers at Department
Stores
Redken (1990s) :
Innovated a different
kind of marketing
approach.
A highly successful
American Premium
brand.
“The more the
market develops,
the less relevant
direct sales will be.”
L’Oreal Invested in :
1. Strong Ad Campaign
on the internet
2. Women’s magazines 
drive word of mouth
3. Have consumers generate
demand for salons’ products
TELLING THE STORY
Diverse Customer Base





Aging population in the West
Ethnic groups
Aspiring customers in the East
Emerging Markets
Growing interest in health &
beauty care among Men all
over the world.
Total Global Ad Spending (in $ Millions)
– Based on Exhibit 5
12
10
8
2005
2006
6
2007
4
Managing Transition
 Swelled $4.56 Billion in
worldwide advertising
spending in 2009
2008
2009
2
0
L'Oreal P&G Unilever
2007, Company spend 2% of its ad
budget on Online Initiatives
Company’s Ad Budget :
 75% for Television
 20% for Print
 5% for Billboards
2010, L’Oreal resumed investments
after focusing on cost cutting
L’Oreal was one of China’s largest
& fastest growing advertisers.
Spent > 10% of its 2009 media
spend in China.
L’Oreal aimed to attract a
bigger customer base in US &
Emerging Markets
Total Ad Spending in China (in $ Millions)
– Based on Exhibit 6
700
576,8
600
500
400
333,3
300
196,5
200
100
75,4
132,5
0
2005
2006
2007
2008
2009
Fame by Association
“L’Oreal used A-list Celebrity
endorsers in highly successful
ad campaigns to push products
to a wide range of age
brackets, ethnicities, and
genders.”
ENDORSEMENTS
Sarah Jessica Parker – Garnier Nutrisse
Eva Longoria, Diane Keaton, Scarlett
Johansson, Beyonce Knowles
Kate Moss – YSL Parisienne
Patrick Dempsey & Gerard Butler – the face of
L’Oreal Paris Men’s Expert Line
The Cannes Film Festival – L’Oreal Makeup
“L’Oreal associates itself with
brand ambassadors who tap into
all ages, race, and sexes, and the
portfolio leaves no stone
unturned.”
2011, L’Oreal launched a
Cannes-inspired line of
makeup, L’Or.
Fame by Association
Fame by Association
Marketing as Recruiting:
L’Oreal Brandstorm
43.000 students 285 universities
The challenge in 2010 was for
student teams to come up with a
beauty-product range for men’s
brand Diesel.
43 countries
In 2011, the challenge involved
designing a new advertising
concept to attract men to
professional salons.
from print TO DIGITAL
“The big revolution is digital, and it is a great revolution.
Because it changed completely the way we communicate
about our brand.”
User-Generated Website
Garnier Fructis launched a user-generated website that had
the ability for the users to upload their own samples of how
they styled their hairusing Garnier Fructis products.
Digital Marketing Innovation: Virtual Personal Stylist
L’oreal
Grassroot
Campaign
Help more than
4000 salons build
Facebook pages
for business
The Facebook pages included
a customizable tab that
displayed products and howto videos
L’Oreal offered instructional
videos, and training and
advertising credits to the
salons
Contained how-to videos filmed by
Beauty Bloggers who provided hair
and makeup tips.
Destination Beauty allowed L’Oreal
to engage viewers at home and
establish sense of community.
L’Oreal Destination Beauty
Used established web personality to pitch
product, like Michelle Phan
Year 2020
“Reaching the Next Billion Customers”
Double it’s customers base to 2 billion people, and increase it’s shares
of sales from emerging markets from 30% to 50% during that time
thank
you!