Because You're Worth IT ...

Friday, May 13, 2011


Indeed, I enjoyed writing this blog, as I have also gained significant knowledge. I learned how L'Oreal operates their business from the first stage through its' last. Likewise, I was able to apply terms and concepts from the book with what I've wrote. Most importantly, I grasped the role of a marketer and the tools they use to successfully market a company. Now every time I enter a buy a make-up product, I will evaluate it differently - from a business standpoint. Honestly, I enjoyed this class and the project, because it was an interesting learning experience. I really walked away with valuable information!

Monday, May 9, 2011


The new Green Academy, the only one of its kind in the world, combines the application of the most modern technologies and the use of environmentally-friendly materials to establish the basis of hairdressing for future generations in the 21st century.

In Spain, the hairdressing sector provides employment for 108,000 professionals every year, receives 175 million client visits and has a turnover of 4.2 billion euros (i.e. 0.4% of Spain’s GDP).

L’Oréal, the world leader in the cosmetics market, has taken another step forward in its commitment to responsible and sustainable innovation by opening the first “Green Academy” in Madrid. This new concept in hairdressing combines a strong technological character with a focus on environmental education, so as to allow the application of and greater familiarity with environmental values and sustainability among professionals in this sector.

The project stems from the Professional Products Division of the company marketing the L’Oréal Professionnel, Kérastase, Kéraskin, Redken, Matrix and Pureology brands for hairdressers. To create this eco-sustainable Academy located in at the company’s headquarters in Madrid, the most modern technologies have been applied in line with sustainability criteria to ensure the best working atmosphere and to encourage responsible behaviour.

Spain currently has about 35,000 hairdressing salons, of which more than half distribute and use L’Oréal products (the firm represents close to 30% of the market), hence the importance of providing adequate training for professionals about how and when to apply them. L’Oréal’s “Green Academy” , however, is also seeking to instil future generations of professionals in this sector with respect for the environment, by serving as a space in which to increase environmental awareness among the more than 8,000 hairdressers L’Oréal estimates will be trained here each year.

According to Didier Tisserand, President of L’Oréal Spain, “Our support for this pioneering academy in Spain, the first of its kind in the world, strengthens our commitment with the environment. An eco-sustainable salon currently costs about 15% more than a conventional one, a cost that will gradually come down through changes in legislation, innovation in materials and medium-to longer-term economic savings”. And it is estimated that, world-wide, a mere hundred or so salons are concerned about being eco-sustainable.

Week 14~ Business Marketing

L'Oreal is indeed a consumer product (a product that is purchases for personal or family consumption or as a gift). They also fit into the category of business products ( a product that is used to manufacture other products, become part of another product, or aid the normal operations of an organization). Which in turn, means that L'Oreal participates in business marketing

L'Oreal sells endless amounts of cosmetic products. They have devoted customers that buy their makeup for their own use. Another factor that contributes to the companies success are the people that purchase their products for other uses. Foe example a make-up artist might buy L'oreal products to use for there business which is adding L'Oreal's business as a business product.

They also participate and use relationship marketing ( a strategy that entails seeking and establishing ongoing partnerships with customers)."L’Oréal’s relationships with its suppliers go beyond purchasing and supply of goods and services. They are essential to the long-term success of our business."
L'Oréal Code of Business Ethics.L'Oréal sets out its values and commitments in its Code of Business Ethics. The Code of Business Ethics is supplemented by the "The Way We Buy", the purchasing code of ethics that each purchaser must comply with.

The Code of Business Ethics was drafted with the help of employees from 22 countries who took part in international working groups in Asia, Europe, North America and Latin America. The Code was then validated by 50 internal experts and reviewed by each Country Manager, Human Resources Manager and local legal counsel.

The Code is available for download in 43 languages : (a full description of L'Oreals ethics)

Monday, May 2, 2011

Weel 13~ Segmenting and Target Markets

Like most businesses, L’Oreal has a segmented target market. It enables them to directly pinpoint consumers who will most likely buy their products; thereby establishing an effective marketing strategy and also increasing revenue. The company has a demographic and geographic segmentation for particular products. Their segmentation is based on a chosen demography and geography, which determines who fits best for different items.
L'Oreal's beauty products are mostly marketed to female consumer’s worldwide. However, target market is further divided according to age group. For instance the “Youth Code" is positioned to attract the younger adults, where as "Revita Lift" is marketed to the more mature adults; to the generation X to the baby-boomers. This strategy of producing a product line geared towards demographic is not only increasing sales turnover for L’Oreal, but it is also helping the company perform well against its competitors.
I believe it is very important to have a target market. It can either make or break a company. Certainly, it is essential to know who the profitable consumers are, as they will benefit from them the most. 
L’Oreal has a solid way of catering specific goods for certain people. When introducing new products, they greatly take consideration of the place and culture - key factors in achieving longevity success!
     However, although L'Oreal's current strategy is effective, the company can have a stronger position if it market to men and the gay community. This will not only increase sales but also, L'Oreal might enjoy comparative advantage in the competitive market of the beauty industry.