Case Study Of L Oréal Marketing

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By doing this, L’Oréal produced most of its products locally. In 2006, L’Oréal acquired a 9.6% market share on the cosmetics market and rose to around 11.2% in 2007. (ICMR, 2009) The 28 brands of L’Oréal are divided into four divisions. Premium brands such as Lancôme, Helena Rubinstein, Biotherm, Kiehl’s, Giorgio Armani and Yves Saint Laurent are managed by The Luxury Product Division (LPD). LPD incarnates elegance and refinement in skincare, makeup and perfume segments. The Consumer Product Division (CPD) is targeting the mass market with the latest cosmetics innovation. CPD runs brands such as L’Oréal Paris, Maybelline New York and Garnier, offering hair products, colouring products, skin care and makeup. The Active Cosmetics Division (ACD)…show more content…
(Chailan, C.,2010) According to Table 2, (Chailan, C.,2010) the three key competences for managing the brand portfolio at L’Oréal can be identified as brands radicalization, brands network arbitration, and brands expansion matrix. By adding differentiated targets (distribution, needs, price) and integrating new brands, brand radicalization aims to position brands distinctly and to avoid any overlap, thus brands can be emerged with its own DNA. Brands network arbitration means that complementary brands of different turnover, market share and future profitability construct a dynamic network within L’Oréal group. All brands develop separately without formal arbitration committee. Brands expansion matrix defines the path and order to launch new segment, new product categories or new countries based on three dimensions: segments of consumers, product categories, and distribution networks. This multi-layered strategy could be a clue to analyze the case of Magic Holdings’…show more content…
The statistics extracted from the China Cosmetics Net show that in 2012, the total sales amount of skincare products on the market was approaching RMB 55 billion (equals to 6.6 billion euros), something that embodies a growth rate of 11%. (Huidian Research, 2013) From Q1 2013 to Q3 2013, the total sales amount of skincare products on the market amounted to RMB 47.9 billion (equals to 5.8 billion euros), which was already 87% of the full sales of the previous year. (Huidian Research,

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