L Orereal: The Distribution Strategy Of Léal Company

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L’Oréal is a brand that has been around for over a 100 years. One of its major branding tools is promoting itself as a company which is well established and an expert in its area. Over the years they have managed to reinvent themselves and improve their distribution system so that it is contained and more efficient. The innovation of the company and range of products allows L’Oréal to reach millions of consumers globally. What are the distribution goals and objectives of the company? The distribution goals of the company are to ensure that delivery to the consumer is efficient and reaches a broad network/market of people. They have implemented a system which is sustainable to the environment as well as contained to ensure efficiency. The…show more content…
Kerastase, Redken, L’Oréal Professional • Dermo-cosmentics – Pharmacy e.g. La Roche Posay, Vichy Laboratories L’Oreal’s distribution channel is a massive operation across a number of countries, due the size of the business and the number of products available. The idea is to be more efficient and readily available to the end consumer. They have managed to develop a distribution channel which allows a speedier delivery. They use very little outsourced intermediaries and a number of logistics teams which carry out tasks accordingly. The supply chain therefore play an important part in the development of the company. The distribution tasks are spread across a massive team starting from the point of manufacture to the wholesalers and retailers. The otherwise known Industrial logistics teams are involved in ensuring that production and supply of raw materials is on time. They also are responsible for factory acquisition and contracting. These people would take care of the warehouses and factories where the raw materials would be kept and the product is…show more content…
L’Oreal’s is distributing its products to the mass market who would be considered the ultimate consumers in households, in this case it would be best to use channel intermediaries such as retailers, supermarkets, hypermarkets, grocers etc. There are then wholesalers who would supply those who would buy more products such as hairdressing salons, this is an example of direct distribution What are the factors/variables that the company took into consideration when designing its channel structure? When designing the channel structure, L’Oreal would first evaluate who their target market is. In the brands case it is everyone as the brands range from household goods to luxury items and pharmaceuticals. Most of the brands are primarily direct at middle class women between the ages of

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