Global Business Environment – L’Oreal is the world’s biggest cosmetics and beauty Products Company.
Q.1 Case study
L’Oreal International Marketing Strategy
L’Oreal is the world’s biggest cosmetics and beauty Products Company. Basically it’s a French based company and its headquartered in Paris. It is
focus engaged in the field of production and marketing of concentrating on hair colours, skin care, perfumes and fragrances, make up and styling
products. Global Business Environment – L’Oreal products also based on dermatological and pharmaceutical fields. Their products are made for Individual and professional customers. This company operates over 130 countries like Asia, America, East and West Europe through 25 international brands.
The success of Global Business Environment – L’Oreal lies in the fact that the company succeeded in reaching out to the customers of different countries of the world, across
different income ranges and cultural patterns, giving them the appropriate product they are worthy of. The area of expertise of L’Oreal being that it
succeeded almost in every country that it entered. The strategies of Global Business Environment – L’Oreal was varied enough to help it and stop itself from restricting itself in a single
country. L’Oreal sold its product on the basis of customer demand and country want rather than keeping the product identical across the globe. It
built ample number of brands or mammoth brands entrenched to the restricted culture and which appealed to a variety of segment of the
universal market instead of generalising the brand and edible in innumerable culture. L’Oreal went on to being a local product in every
international market. The brand extension of L’Oreal also came in the same sector or the same segment of market. L’Oreal believed in growing its
expertise in the segment it is conscious of rather than going into a completely new sector of market.
International marketing strategy is more in-depth and broadened in one sense of the term. It is simply a principle of marketing however on a global
scale. Setup of global marketing strategy has a lot to do with understanding the nature of global market itself, and most importantly the environment.
Business environment across the globe has different economic, social and political influence. Thus, it is believed that selecting a global market target
for examples when strategizing is a good idea. International marketing strategy of Global Business Environment – L’Oreal is concentrated on a cross cultural arena spanning four market destinations. They are namely, 1.) Asian Market, 2.) European Market, 3.) North America Market and 4.) The African, Orient and Pacific Region.
Asia
At present L’Oreal is one of the best company in the whole world in the field of cosmetic products. The cosmetic products of the L’Oreal are widely used
and specially the hair colour which was introduced by L’Oreal few years ago. Global Business Environment – L’Oreal is very famous in Asia and their products in Asia are very cheaper
than the other companies and are used by majority of people in china, Thailand, Japan etc. L’Oreal is famous and very successful because of their
global marketing strategies which are very helpful and also distinct from the strategies used by other companies in this field. L’Oreal in Asia uses the
sustainable strategy that is of growing the company as the demands of cosmetic products in the countries like china, Thailand etc is in great amount. This company uses the strategy of suspicious brand management and they also brought the strategy of more suspicious acquisitions. The main problem that a company like L’Oreal faces in Asia is of competition given by the other companies dealing with the cosmetic products. To overcome this problem in Asia these companies use the strategy of selling good quality products at the cheaper rates than the other companies.
One of the best strategies of Global Business Environment – L’Oreal in Asia is of diversification of the brand and the main reason behind this strategy by L’Oreal is to make them palatable in the local cultures. L’Oreal in Asia aims at the management of the global brands with the local variations and this means that their main aim is of becoming a local and not the foreign company in Asia. For example L’Oreal in Thailand has given local names to their stores and most of the employees present in this company, are local people of Thailand. It is because of all thesestrategies; L’Oreal is very successful in whole Asia.
European Market
L’Oreal is the only company which uses the strategies which also supports the people in many ways and not only in providing good quality products at
cheaper rates. L’Oreal used different strategies of marketing in the European market like they used the strategy of nurturing self-esteem of the people
with beauty. In France, Global Business Environment – L’Oreal created the programs like “Beauty from the heart” for helping the people made helpless by illness or any kind of negative
life experiences. In the countries like UK and Germany, many of the women and also the young people regain their confidence and their self-image
gradually by using the cosmetics which are provided by L’Oreal. In European countries L’Oreal also used the marketing strategies like taking
calculated amount of risk etc. but most of the strategies are related to the growth of the people mentally and not only for the beauty or the fashion
purpose. Various innovative treatment programs are launched by L’Oreal for the young people of European countries and this company also launches the free skincare and make-up workshops for the women suffering from cancer.
For example in France a programme named as “La Vie, de Plus Belle” offers the free skincare and makeup for the cancer suffering women in all over the
France. This helps them to cope with the treatment’s side effects and it also helps them to retain their self-esteem which is very important for a patient.
In the European countries Global Business Environment – L’Oreal generally uses the strategy of the management of brand by which L’Oreal had made a large amount of brands
which are rooted in the local culture and which all appeals to the various segments of the global market. By using these social types of strategies for
the people of Europe has helped L’Oreal in expanding their business in the whole Europe.
Question:
- What is L Oreal’s international strategy?
- What strategies make Global Business Environment – L’Oreal an unbeatable beauty company?
- How does Global Business Environment – L’Oreal promote their products?
- Why the crowd go for Global Business Environment – L’Oreal product?
- What is the unique selling proposition of Global Business Environment – L’Oreal?
To get complete solutions or answer sheets for your IIBMS Case study papers, contact Harsha Morey. With over 24 years of experience, he specializes in crafting customized, unique, and plagiarism-free case study answers with Project reports and Thesis.
Dr. Banakar is a trusted resource for reputable and reliable academic support in India. He has a team of over 100 PhD professionals.
You can contact Dr. Banakar through the following channels:
- Email: aravind.banakar@gmail.com
- Phone: +91 9901366442 & +91 9902787224
IIBMS MBA Solved Answer Sheets
EMBA IIBMS Answer Sheets & Case Studies