Loreal Pestel Analysis

. STUDY OF ENVIRONMENTAL FACTORS
a. PEST Analysis:

i. Political:
L 'Oreal faced issues in the dermatology branch led by Galderma due to new legislations governing drugs. The EU law affects L 'Oreal and restricts their use of certain kinds of carcinogenic chemicals, such as Phthalates. L 'Oreal is obligated to produce safe products that do not contain any harmful substances.
Also, L 'Oreal has to follow the rules set by Advertising Standards Authority. For example, advertisements cannot be misleading that over-exaggerate the functions of a product.
Thus L 'Oreal should fully understand these policies, and to avoid a violation of these policies and regulations, strictly control chemical products and related banned substances content.
ii.

a. L’Oreal Paris symbolizes a luxurious and aspirational beauty conscious customer. The brand ambassadors for the same have been people renowned for their beauty conscious self. The noun ‘Paris’ in the name brings in the fact that the product has an apparent elegance that the ‘fashion capital’ of the world possesses. The value for this line of products would cater to a customer who seeks an apparent elegance in their commodity of interest. For the niche customer of a L’Oreal Paris product, price would come secondary to the quality and status symbol it would attribute. Being a luxury product, people would tend to buy it only when they have a considerable amount of disposable income. In economies doing well, the product would continue to

Kiehl 's: It has positioned itself as a skin care place based in natural ingredients. With growing demand from natural products all over the world, this pharmacy can strengthen itself by laying stress on its ‘heritage’ and use of ‘natural ingredients.’ Having penetrated well enough, it would probably focus on product development and develop more products that deliver values such as heritage and natural cure.

b. Lancôme: Lancôme immediately creates an association with Paris and happiness. It further positions itself as an award winning luxury brand. With brand ambassadors who aim to embody the vision of the brand, it clearly delivers a message that the range of products involved caters to the ‘elite’ economic strata of the society. Alike L’Oreal Paris, Lancôme too would have to adopt a strategy that develops a good customer lifetime value.

c. Giorgio Armani: By having brand ambassadors who symbolize an elite group, it is apparent that the product range too caters to a class with a good amount of disposable income. It would probably involve itself in more endorsements by people who can trigger an aspirational lifestyle. Moreover it would also actively involved in diversification.

d. Yves Saint Laurent: This caters to the everyday needs of an urban, fashion conscious and bold woman. It would aim at establishing a strong customer lifetime value. It would also search for new markets in other