Week 4~ L'Oreal's Marketing Environment (Recession)

L'Oreal remained stable despite the 2008 Reccession, with an increase of 1% from the year before, and an average of 3.9% in sales in the last 15 years.  However, L'Oreal's largest geographic zones performed poorly with a 6.3% decrease and 3.4% decrease in Same store sales in Western Europe and North America. Meanwhile, in emerging markets, L'Oreal had 3.3%, 8.3%, 11.2%, and 5% increases in Same store sales in Eastern Europe, Asia, Latin America, and Africa, respectively. The benefit of its international exposure means the effects of poor sales do not have as high an impact as it would on a company that is based solely in North America or Western Europe.

Week 4~ L'Oreal's Marketing Environment

L'Oreal  is present on 5 markets: colouring capillary, capillary cares, skin cares, make up and perfumes. The brands of the group are numerous and present on all the distribution channels. These brands are place on different niche markets and each brand is complementary in order to satisfy all the market. The aim brands are:

- L'Oréal Professionnel, Redken, Matrix, Kérastase, in hairdressing salons
- L'Oréal Paris, Garnier, Maybelline, Soft-Sheen×Carson in supermarkets or hypermarkets
- Lancôme, Helena Rubinstein, Biotherm, Kiehl's, Shu Uemura, Ralph Lauren Parfums, Giorgio Armani and Cacharel Parfums in luxury market
- Vichy, La Roche-Posay in pharmacies.

L’Oréal has different brands with different prices and cultures. Indeed, L’Oréal has French brands but also American brands with Maybelline New York, Italian brands with Giorgio Armani or Japanese brands with Shu Uemura.
L’Oréal always tries to innovate and devote 3% of its turnover to the research. More than 120 molecule have been created for 30 years by the L’Oréal searchers.

Week 3 ~ Social Responsibilty ( L'Oreal Rewarded ! )

L'Oréal is rewarded once again for its "shareholder and social responsibility" achievements

For the second year running, L’Oréal is awarded the special "Shareholder and Social Responsibility" prize during the Share Grand Prix Awards, organised by Mieux Vivre Votre Argent in partnership with Vigeo, an independent agency specialising in corporate social responsibility.

Week 3 ~ Ethics & Social Responsibility

Loreal has experienced many ethical controversy’s throughout the year s. One famous controversy involved singer/actor Beyonce’ Knowles when the ad was advertised for their new Feria hair color. The ad featured a strangely white-looking Beyonce’. L’Oreal did immediate damage control, denying that her features or skin tone were retouched for the ad campaign, nothing else was said after the release of that statement.

Frankly, I believe that L’Oreal portrays an image that lighter and whiter women fit their image and profile of beautiful advertisement. In 2002 L’Oreal was sued and found guilty of racial discrimination after it sought to exclude non-white women from promoting its shampoo. In a landmark case, the Garnier division of the beauty empire, along with a recruitment agency it employed, were fined €30,000 (£20,300) each after they recruited women on the basis of race.

               "In July 2000, a fax detailing the profile of hostesses sought by L'Oréal stipulated women should be 18 to 22, size 38-42 (UK size 10-14) and "BBR", the initials for bleu, blanc, rouge, the colours of the French flag. Prosecutors argued that BBR, a shorthand used by the far right, was also a well-known code among employers to mean "white" French people and not those of north African, African and Asian backgrounds."

             After the ruling, the company said in a statement, “We believe that diversity and difference are a source of richness and we do not tolerate any form of racism or discrimination.” Except, I guess, when you have a highly successful spokeswoman whose skin is just too dark.

TOPIC CHANGED FROM MAYBELLINE TO LOREAL

L'Oreal posts 25 percent rise in 2010 net profit

       L’Oreal SA says its net profit rose 25 percent last year as strong demand for its consumer cosmetics and growth in developing markets in Asia and Latin America spurred higher sales and profitability.

      The French cosmetics giant behind brands like Maybelline and The Body Shop says it made euro2.2 billion ($3 billion) last year, up from euro1.8 billion in 2009 when earnings were hammered by the global economic downturn.

       L’Oreal says in a statement Friday that its consumer cosmetics business, which includes Garnier skin and hair care products and Maybelline makeup, increased sales over 11 percent last year to euro9.5 billion.

The company forecast further sales and profit growth in 2011.

Week 2 ~ Strategic Planning

Maybelline carefully statically planned this new product and as always it was a guaranteed profit for their company.  Given their many amazing products, Maybelline once again continues to surprise their users with their new Mascara “The Falsies” which was recently released.  As everyone knows more and more women now crave for longer, bolder and thicker eyelashes. “The Falsies” gives you all 3 in 1 and guarantees 300% more visible lashes from corner-to-corner. After putting this mascara on ladies will get the effect as if they were wearing fake lashes.  The patented spoon brush fans out lashes from corner-to-corner, while the Pro-Keratin formula instantly builds volume without clumping. The unique flexible wand helps to lift and separate lashes to provide the look of 300% more visible, fuller lashes, no gaps from any angle. Best of all, the entire product is waterproof so all the ladies don’t have to worry about smudging there mascara. This product is designed for young adults, teenagers, and women.  “The Falsies” is retailed at $ 8-10 depending on the store. This product can be found in all pharmacies, any make-up isle of your local store and also on the maybelline.com website.

Honestly, this is great strategic planning because it’s a product that gives women exactly what they’ve been asking for as well as what makes their eyelashes look great. This product catches the eyes of all women given the great promotion and the effects of using the product. I believe it was a great marketing tactic because women are always looking for new cosmetic products and this product will not disappoint. The financial profit will not be unsatisfactory due to their great planning. Maybelline strategically planned to catch the eyes of women all over the world and indeed it did. I bought the merchandise and I can truly say I was not let down.