The Success Of Brand Loreal

The Success Of Brand LorealTo start with a brief introduction, explaining which market you pull in chosen and why, which companies/ dents you have chosen and why. The rest of the report so-and-so then be organised thematic aloney, such as by operational marketing ara that you have chosen to analyse. You might as well like to accept a short concluding section, tying every(prenominal)thing together and setting emerge your main findings and conclusions.The market chosen is of that of decorative ingatherings which is a huge market in todays date having contrasting working attitudes and style, producing goods according to the heightical anesthetic requirement in accordance to the wants of the customers and consumers. This assignment comp ares and contrasts the way in which two different companies, LOreal and Unilever carry bulge their world(prenominal) marketing. Initially this assignment revolves around the two mega cosmetic taint industry LOreal and Unilever and their mar keting tactics and strategies around the globe in respective(a) countries.LOreal a cosmetic giant operating in all over 130 countries worldwide proposes a turnover of over 13.7 billion since 2001 (check financial results of 2009 and report). The company records a ar mountain chaind growth of over 19.6% and 26% increase in profit in 2001 and 2002 respectively. (Check recent growth and report) The consistent growth of the company and the cover in the special(a) market is ca utilized due to its varied marketing activities in the marketing arena. The company differs itself from different companies in the sphere of point of intersection/service excogitation packaging mug name/logo price publicizing sales procession website distribution ravish(s).The success of Brand LOreal 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 ware the y are worthy of. The area of expertise of LOreal being that it succeeded almost in every res publica that it entered. The strategies of LOreal was varied complete to help it and stop itself from restricting itself in a single country. LOreal sold its product on the basis of customer implore and country want alternatively than keeping the product identical across the globe. It built ample flesh of brands or mammoth brands entrenched to the restricted nicety and which appealed to a variety of section of the universal market instead of generalising the brand and edible in innumerable culture. LOreal went on to being a local product in every international market. The brand extension of LOreal also came in the same sector or the same segment of market. LOreal supposed in growing its expertise in the segment it is conscious of rather than going into a completely impudently sector of market..LOreal had built a dozen or so mega brands root in the local culture and appealing to di fferent segments of the worldwide market. kinda of homogenizing the respective(a) brands and making them palatable in myriad cultures, Owen-Jones mulish to embody their (the brands) country of origin, turning what many marketing gurus considered a narrowing factor into a marketing virtue.As a senior LOreal manager put it, You have to be local and as strong as the best locals but backed by an international image and strategy. We have do a conscious crusade to diversify the cultural origins of our brands.Brand ExtensionsLOreal realized the take up for caution in case of brand extensions. The company extended its brands afterward doing a thorough research. When LOreal mulish to enter the kids shampoo category in 1998, it debated whether to launch a new brand or go for an extension. The company realized the LOreal name, long associated with womens hair care, would glamour instant credibility with moms. But Kids was really a child-oriented product. When LOreal offset printing unveiled its LOreal Kids shampoo line early 1998, retailers were sceptical. Retailers say the value isnt there. We say it is that the child establishes value. We were to a greater extent or less tenacious. mentioned Carol Hamilton, 45, senior VP-marketing for the LOreal retail division of CosmairLOreal professionals mechanises with LOreal professional salons in order to non only promote their product but also to help hairdressers to have a vision, excel and accomplish.LOreal have divided their product range in five different categories to pore its marketing activities exclusively knowing for the targeted market audience.professional person productsConsumer ProductsLuxury ProductsCosmeticsBody ShopThe body shop was founded in 1976 in the United Kingdome well up know for its strong product base of natural ingredients and having a network of over 2550 repositions in 63 countries (is this the present situation?)Unilever on the other tidy sum, a British-Duch multinational company owning ample numer of consumer products in the food, beverage and the person-to-person care product sector. Promising to give a consistent evolution in the sustainable living plan of the commoners. Inspiring billions of people to support them in order to give themselves a bankrupt life.In a world of hype and stereotypes, the plunk Unilever provides a refreshing alternative for women who recognise that beauty isnt only if just about how you look but it makes a genuine difference. plunge Unilever is committed to widening the definition of beauty for women beca consumption it believe real beauty comes in all ages, shapes and sizes. To help enjoy your own brand of beauty, squab provides an extensive range of cleansing and personal care products that make a genuine difference to the narrow down and feel of genuflect and hair. dove is the UKs top Bar Soap brand and 45% of the population bought a fall product in 2010. In fact, 10.1 zillion women use peacenik every hebdomad in the UK.Unilever first launched its products in the US during the 1950s, and in 1957 the basic plunge block up formula was refined and create into the Original plunk Beauty bar. It was launched as a beauty soap that was clinically proven to be milder on dry and sensitive skins. Launched in the Uk in the late 1990s. The following age saw the launch of more bath time treats like beauty baths and moisturising body washes.Unilever Dove then expanded its brand into antiperspirant deodorants and ProAge, a range of skin cream and hair care products specifically designed in accordance to the requirement of the local women. Unilever re-defined the definition of beauty for women. In 2010 Unilever Dove came out with another revolutionary product of cost therapy which could be used by the consumers at home rather than spending a caboodle on other beauty therapys to keep their hair strong damage free. In 2010 Unilever also diversifies its Dove products from the female sector to the male an d hence the parenthood of a completely new brand of products in which unilever had never stepped its foot into, the Dove Men lot brand was formed offering deodrants and body washes specifically designed for the male skin.LOreal entered India with the hair colour product, they changed the way consumers viewed the product. From being a product for the old-age to turn grey hair into shining black. LOreal targeted the young market for whome feel stylish and to the modern mark was really very important. It was a tough job for LOreal to change the mindsets of the people.Dove entered India in the late 1993. Dove-known to be a flight attendant to promise gave products to woment to satisfy them all over the world. In India Dove became the fastest growing hair care shampoo product in fifteen month of its launch.ADVERTISINGLOreal-because you are worth it, gives a kind of a fulfilment to the consumer that the kind of product the consumer was looking for, this is it.LOreal started its advert ising campaign in the late 1920 via posters and other such medims. It first time appeared onscreen in 1950s in movies. In todays date LOreal got celebrity of all ages to promote their product. The strategy that LOreal used here is to use local celebrities to whom the common man relate to rather than having just one celebrity to promote their product globally. For example in India LOreal used ex missy world Aishwariya Rai to promote their product where as in the K they used Penelope Cruz to promote their product. This got LOreal the image of Traditional Beauty.LOreal knew that the best way to attract customers was to tally the customers with the image that they could become as beautiful as their favourite celebrities. Resulting into more the sales of the product that would take placeDove on the other hand used the tactic of complementing their customers giving them a profound compulsory vibe by giving a positive line of you are beautiful resulting into her purchase the product.Do ve uses various creative marketing strategies like recently plunge is using Facebook which is a kindly commerce networking site to promote its product. Dove has made its products available to the customers on the accessible website. Dove believes that it makes complete sense to move from a social networking website to a purchase worthwhile at the same place. On the later research when found that email results into more selling rather than social website, the focus of the company changed into sending more personalised emails to the prospective customers. Dove also launched a competitive advertisement in competition with LOreal with the tag line Dove is No.1 Shampoo sending customers emails with such adverts and making customer believe that it is the best the customer can get.Given the image of real women Dove never used or endorced their products through and through with(predicate) celebrities like in the case of Unilever. Instead Unilever built a new strategy for Dove. Given the cote of being Real Women Dove used a corporate advertising strategy by various culture of women and projecting an image of self-satisfaction for the Unilever brand.sConsumers will soon be able to buy Dove products through Facebook, with Unilever unveiling the new ecommerce offering conciselyMarshall Manson, europium Middle East and Africa managing director of digital at Unilevers PR agency Edelman, said It makes sense to allow users to move directly from a social line recommendation, or from instruction a brand has shared, to purchase.He also said that the move makes it easier for Dove to connect social activity with tune values and footfall their effectiveness.The news comes just days after a study by Foresee found that consumers prefer email marketing messages than social media interactions with retailer websites in the UK.Larry Freed, chairman and chief executive officer of ForeSee Results, said brands need to be aware of how their target markets are influenced by packag ingal emails, advertising on Facebook or word-of-mouth recommendations.SALES PROMOTIONIn India LOreal brought the international style by transforming the looks in the form of amenities to its customers. LOreal marked its products through hair salons in India. Today LOreal owns over 2000 saloons over 36 cities in India.LOreal and Unilever competed on getting positioned in the shelf-space in the United States to be in the center of attention of the customers.Dove on the other hand promoted its product by positioning itself the best that is as the number one product and also with the help of dove the s tear down day challenge, where dove promised healthy hair or money back guarantee.In the United States Dove bought about the half-faced challenge. Dove asked the American customers to use the product on half of their face and feel the difference.LOreal on the other hand promised a reduction in the hair fall or in the healthy hair or a complete money back guarantee. LOreal carried out it s sales promotion having a wide assortment with varying range of products for premium and the middle class. Though LOreals prmium product were at low demand, LOreal kept on reinforcing them through promoting their premium brand as a look of necessity.WEBSITEThe LOreal website not only gives a brief introduction of its varied product features but it also gives information about the company history and also about the various product ranges for women in the market supplementing it with a little extra of for women categorising it specifically for them.LOreal in China launched a website in mandarin to help customers easy handiness and making it easy for them to use the website.Dove maintains its simplicity in its website also but to it dove also adds up a space for testimonials and various offers and promotions that Dove have, to offer at that minute. To that Dove had also added up an interactive session and video to show how dove has helped peoples hair.Unilever on the other hand used specimens of local commoner beauty to endorse the Dove beauty product on their website. They also came up with advertisement of the websites specific to that part of the region.For example the Indian website had adverts of Dove moisture riser to have soft skin where as in the United Kingdome the website had advertisements on moisturiser on cold cream to protect them from the cols. distribution reassignA market channel is one of the most important factors in the marketing of a product. It closures the period, space and hole in the market between the consumers and the product manufacturers. In India to distribute its product Dove Unilever uses three approaches, indirect coverage, and direct coverage and Streamline method. Dove Unilever looked out for short supply-chain for distribution to meet its customers unavoidably and to reach out to a huge population. In India Unilever elected sub-stockist that covered up the mass part of the marketing areas in India where as in the Unites Kin gdome Unilever were in direct contact with the retailers to sell out their products.Over 180 million units are produced in the United Kingdome every year. Most of it, around 65% of it is exported overseas.CONCLUTION.DISTRIBUTION CHANNELLOreals Distribution Channel in the BalkansWith 290 subsidiaries, more than 100 distributors and 42 plants, all spread out in about 130 countries, LOreal is the leader of the cosmetic industry.The group has begun its internationalisation in 1912 by following three steps First, mercenaryisation of professional shampoos to hair-dressers via distributors in near Europe (Spain, Italy, Great Britain, Germany and Poland) and in the Americas first landing Second, local firms are taken over for example in the USA (Redken 1993, Maybelline 1996 etc.), in Argentina (Miss Y lang 2000) go native Third, subsidiaries (production, research and development) are directly created (Greenfield investment) without any first passage via distribution. It is the case in A sia (Japan and Hong Kong) globalisation.The group has to face harsh competition and new stakes like diversify its product segments (baby-boomers which become mammy-boomers American, French and Japanese young with specific tastes and men), exploit new means of distribution (like on line sales) and finally, take advantage before the competitors, of new emerging markets like Asia, India, Latin America, Africa and East European countries.For our analysis on distribution channel performance, we will focus on the Balkans region () where the group detains its highest number of distributors as well as no subsidiary. Furthermore, these countries are future new comers in the European Union and such a particular presence in this region is no doubt linked to LOreal internationalisation strategy. Distributors, in this area, buy products directly to the headquarters.There are lot of things you wrote about LOreals distribution channel.. You need to bring in some operational marketing of LOreal an d then conclusion.UNQUOTE ABAThis report will analysing the international/global marketing activities of two international well known companies LOreal and Garnier operating in a similar market across a range of countries in a contrasting way. The activities that the report will focus on are as follows product/service design or formulation packaging brand name/logo price advertising sales promotion website distribution channel(s). SLIDE SHOW MAILShttp//www.loreal.com/_en/_ww/html/suppliers/suppliers-performance/suppliers-performance-conception.aspxLOreal a company operating in over 130 countries worldwide propose a turnover of over 13.7 billion since 2001. The company records a consistent growth of over 19.6% and 26% increase in profit in 2001 and 2002 respectively. The consistent growth of the company and the share in the particular market is caused due to its varied marketing activities in the marketing arena. The company differs itself from other companies in the sphere of produ ct/service design packaging brand name/logo price advertising sales promotion website distribution channel(s).http// http//www.loreal.co.uk/_en/_gb/index.aspxwww.loreal.co.in/_hi/_in/index.aspxBRAND-The success of Brand LOreal 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. The area of expertise of LOreal being that it succeeded almost in every country that it entered. The strategies of LOreal was varied enough to help it and stop itself from restricting itself in a single country. LOreal sold its product on the basis of customer demand and country want rather than keeping the product identical across the globe. It manakin ample number of brands or mammoth brands entrenched to the restricted culture and which appealed to the a variety of segment of the universal market instead of generalising the brand and edible in innumerable culture. LOreal went on to being a l ocal product in every international market. The brand extension of LOreal also came in the same sector or the same segment of market.LOreal had built a dozen or so mega brands grow in the local culture and appealing to different segments of the global market. Instead of homogenizing the various brands and making them palatable in myriad cultures, Owen-Jones decided to embody their (the brands) country of origin, turning what many marketing gurus considered a narrowing factor into a marketing virtue. As a senior LOreal manager put it, You have to be local and as strong as the best locals but backed by an international image and strategy. We have made a conscious private road to diversify the cultural origins of our brands.Brand ExtensionsLOreal realized the need for caution in case of brand extensions. The company extended its brands after doing a thorough research. When LOreal decided to enter the kids shampoo category in 1998, it debated whether to launch a new brand or go for an extension. The company realized the LOreal name, long associated with womens hair care, would confiscate instant credibility with moms. But Kids was really a child-oriented product. When LOreal first unveiled its LOreal Kids shampoo line early 1998, retailers were skeptical. Retailers say the value isnt there. We say it is, that the child establishes value. We were beauteous tenacious. mentioned Carol Hamilton, 45, senior VP-marketing for the LOreal retail division of CosmairLoreal professionnel mechanises with Loreal profetional salons in order to not only promote their product but also tp help hairdressers to have a vision, excel and accomplish.They have devided their product range in five different categoriesProffestional productsConsumer productsLuxuary productsActive cosmetics andThe body shop.The body shop was founded in 1976 in the United Kingdome well known for its strong product base of natural ingredients and having a network of over 2550 stores in 63 countries.http//w ww.icmrindia.org/casestudies/catalogue/Marketing1/Branding%20Strategy-Marketing%20Case%20Study.htmBrand%20ManagementDoveIn a world of hype and stereotypes, the Dove brand provides a refreshing alternative for women who recognise that beauty isnt simply about how you look.Making a genuine differenceDove is committed to widening the definition of beauty for women because we believe real beauty comes in all ages, shapes and sizes. To help you enjoy your own brand of beauty, Dove provides an extensive range of cleansing and personal care products that make a genuine difference to the condition and feel of your skin and hair.Dove is the UKs top Bar Soap brand and 45% of the population bought a Dove product in 2010. In fact, 10.1 million women use Dove every week in the UK. How it all started First launched in the US during the 1950s, Dove cleansing bar with its moisturising properties was originally developed to treat burn victims during the war. In 1957 the basic Dove bar formula was re fined and developed into the Original Dove Beauty bar. It was launched as a beauty soap that was clinically proven to be milder on dry and sensitive skins. In the 1970s an independent clinical dermatological study proved Dove Beauty bar was milder than 17 leading bar soaps.Dove was launched in the UK in the 1990s. The following years saw the launch of more bath time treats like beauty baths and moisturising body washes.In 2001 Dove launched its first antiperspirant deodorant. Only Dove Deodorant has its 1/4 moisturising cream formula that helps skin to recover itself after every shave, leaving underarm skin feeling smoother than an ordinary deodorant.2004 saw the launch of the Campaign for Real Beauty, which highlighted the Dove brands commitment to broadening definitions of beauty.Following on from this Dove launched the Self observe Fund in 2005 which acts as an agent of change to educate and inspire young girls on a wider definition of beauty. It aims to boost the self-confidenc e of young girls and women, enabling them to reach their full potential in life.Also in 2007 Dove launched ProAge, a range of skin care, deodorant and hair care that has been specifically designed to give mature skin what it needs right now.In 2010 the Dove hair care range was revitalised with distinct new benefits. The Dove Damage Therapy range is designed to combat the damage caused by daily brushing, towel drying styling etc.2010 also saw the launch of the new Dove Men+Care male grooming brand, offering deodorants and body washes specifically designed for mens skin Did you know?British girls suffer the lowest self esteem in the world, after Japan. Almost (74%) of girls aged 8 12 are so dissatisfied with their bodies that they would like to change something about their appearance.The Dove team is committed to help girls build positive self-esteem and a healthy body image, with a goal of reaching 5 million girls worldwide by 2010.The Dove Self remember Fund has reached over 5 million girls worldwide and is committed to continuing to help girls build positive self-esteem and a healthy body image.For information on the Dove range of products call the customer careline free on 0800 085 1548 in the UK and 1850 404060 in Ireland.From our rangeDove Beauty Cream BarDove Triple Moisturising Body WashDove Rich Nourishing Body MoisturiserDove Original Roll On DeodorantDove Go tonic Cucumber Green Tea Scent DeodorantDove Intensive Repair ShampooDove Intensive Repair Express Treatment ConditionerDove Men+Care Clean Comfort AntiperspirantDove Men+Care Clean Comfort Body Face washhttp//www.unilever.co.uk/brands/personalcarebrands/dove.aspxPRICEADVERTISINGLOreal-because you are worth it gives a kind of a satisfaction that this is the kind of product that the consumer was looking for.LOreal advertised around the world in the 1920 via posters. In the 1950s it brought its advertising medium in movies and made it on screen for the first time. In todays date LOreal has tak en various famous actresses of varied celebrities of all ages to promote their product. With the promotion techniques LOreal has kept one thing in mind to also use local celebrity for the local advertisement in order so as to the common can relate themselves and in order to use the image of traditional beautiful women. Having the idea in mind that more beautiful the women would be more the customer would get attracted and in accordance more the sales of the product would take place.In India LOreal advertised through a media onslaught for its global brand featuring Aishwariya Rai re-defining the definition of beautiful hair.LOreal India has just launched a media blitz for its global brand LOreal Paris Total Repair 5 featuring cine star Aishwarya Raihttp//www.financialexpress.com/news/loreal-joins-ad-war-with-hul-pg/656116/ advertizement In 1920s, LOreal advertised around world by posters. Around 1950s, it brought a new advertising medium, especially the movies. LOreal made it on-scre en first time during this period and it win an advertising Oscar award. Nowadays, LOreal takes on famous actresses or different celebrities of all ages that promote product and ensures its higher sales.Read more http//wiki.answers.com/Q/What_is_LOreal_Promotional_Strategyixzz1DxUkzPldhttp//wiki.answers.com/Q/What_is_LOreal_Promotional_StrategyDove-you are beautiful gives a positive feeling to the customer that she is beautiful and hence she needs to have the product.Dove uses various creative marketing strategies like recently dove is using Facebook which is a social commerce networking site to promote its product. Dove has made its products available to the customers on the social website. Dove believes that it makes complete sense to move from a social networking website to a purchase worthwhile at the same place. On the later research when found that email results into more selling rather than social website, the focus of the company changed into sending more personalised emails to the prospective customers. Dove also launched a competitive advertisement in competition with Loreal with the tag line Dove is No.1 Shampoo making customer believe that it is the best.a comparative ad campaign with the ad line Dove is No. 1 Shampoo even beforehttp//www.financialexpress.com/news/loreal-joins-ad-war-with-hul-pg/656116/http//dove.in/tvc_main.phpConsumers will soon be able to buy Dove products through Facebook, with Unilever unveiling the new ecommerce offering shortly.Powered by Amazon, the Facebook store will first be available in the US with plans in place for a global rollout later this year.Speaking to Marketing Week, Marshall Manson, Europe Middle East and Africa managing director of digital at Unilevers PR agency Edelman, said It makes sense to allow users to move directly from a social word-of-mouth recommendation, or from information a brand has shared, to purchase.He also said that the move makes it easier for Dove to connect social activity with business values and measure their effectiveness.The news comes just days after a study by Foresee found that consumers prefer email marketingmessages than social media interactions with retailer websites in the UK.Larry Freed, president and chief executive officer of ForeSee Results, said brands need to be aware of how their target markets are influenced by promotional emails, advertising on Facebook or word-of-mouth recommendations.http//www.dma.org.uk/news/nws-dmitem.asp?id=6391t=Dove+heads+to+Facebook+for+salesSALES PROMOTIONIn India loreal brought the international style by transforming the looks in the form of amenities to its customers. LOreal marked its products through hair salons in India. Today owning over 2000 saloons over 36 cities in India.In 2002, Mr. Sharma, the general manager of LOreal India Pvt Ltd, expected the sales turnover to double. So he bought the international styles to India, the Indian hair dressers will recreate the looks of customers by converting the interprete d looks in the form of services rendered to them. So nowadays, LOreal India has 2000 saloons across 36 cities.http//wiki.answers.com/Q/What_is_LOreal_Promotional_StrategyRead more http//wiki.answers.com/Q/What_is_LOreal_Promotional_Strategyixzz1DxTF6zIiWEBSITEThe LOreal website not only gives a brief introduction of it varied product features but it also gives information about the company history and also about the various product ranges for women in the market supplementing it with a little extra of for women categorising it specifically for them.Dove maintains its simplicity in its website also but to it dove also adds up a space for testimonials and various offers and promotions that Dove have, to offer at that minute. To that Dove had also added up an interactive session and video to show how dove has helped peoples hair.DIS For our analysis on distribution channel performance, we will focus on the Balkans3 region where the group detains its highest number of distributors as we ll as no subsidiary4 Furthermore, these countries are future new comers in the European Union and such a particular presence in this region is no doubt linked to LOreal internationalisation strategy. Distributors, in this area, buy products directly to the headquarters and are provided thanks to the Hungarian subsidiary.Performance EvaluationSeveral criteria, extracted from the Marketing literature5 enable to evaluate LOreal export channel performance. These criteria are divided into four main categories (see schema 1)1. Selection of foreign intermediaries is the first criterion to examine what has determined the choice of one distributor better than one another? Indeed, if choice is not well considered, performance tends to be altered. An ineffective foreign distributor can set you back in years it is almost better to have no distributor than a bad one in a major market6. In the case of LOreal, the choice of a distributor comes from three options recommendations from business conta cts, prospecting or direct requests by the distributor himself. In all cases, a deep audit of the would-be distributor is undertaken7 (financial strengths, commercial force, know-how, etc. ). Obviously, the chosen distributor does not sell direct rival products nor any other cosmetics products. The distributor seems to have a great interest to abet to this rule otherwise they lose the opportunity to sell the famous brand.2. Monitoring such as reporting, control of selling places, frequency of visits and type of contract, is said to be necessary in order to reduce information asymmetry that undergoes the exporter. All types of monito