Thursday, August 10, 2006

L'Oréal : World Of Beautiful Brands

Brand :L'Oréal
Company:L'Oréal Paris

Brand Count: 112

L'Oreal is one of the most successful International premium brands in India. This French brand came to India in 1991 with its Ultra Doux range of Shampoo through its Agent Laboratories Garnier. In 1994 Laboratories Garnier became the 100 % subsidiary of L'Oréal. In 2000 Loreal launched its range of cosmetics in to Indian market.
L'Oréal is a global giant in the cosmetic industry with a presence in over 120 countries. Its brand is based on the values of Innovation and developing formulations unparalleled in quality and performance.

The Indian Cosmetic and skin care market is estimated to be around $300 Million. In this market the Color Cosmetic segment is around Rs 250 crore while the Skin care segment is estimated to be around Rs 400 crore.

In India the brand is having its presence with three international signatures: L'Oréal Paris, Maybelline Newyork and Garnier.
While L'Oréal was focusing on hair color market in the initial stages of its launch, Maybelline was in the premium color cosmetic segment ( Lipstick and nail enamel) while Garnier in the "naturals" segment.
L'Oréal came to India with its International range of hair colors. At that time hair colors were in the nascent stage with hair dyes dominating the market. The major player being Godrej. The consumers were thagingng lot who had startegrayingng.
L'Oréal changed the way Indian consumers viewed the hair color. The target consumers were not the older lot who want to blacken their grey hairs but the younger ones who want to make a fashion statement.
It was a tough call and to change the Indian consumer's mindset required a good marketer with hell lot of money. L'Oréal had all that. Globally this brand is endorsed by who is who in the fashion world like Claudia Schiffer. In India, the brand is endorsed by none other than Aishwarya Rai. The campaigns of L'Oréal had international models and the Indian models like Isha Koppikar and the ads were positioning this brand as a premium brand. Indian premium class who used to be a globetrotter knew this brand and there was no problem in accepting the Indian version. L'Oréal has garnered a market share of 38% in this segment.
Garnier concentrated on the Natural Hair care market with the main USP of strong hair. The brand positioned as a Unisex brand mainly used its international campaigns in India to appeal to the Indian consumer.
Maybelline is in thcolor cosmeticic segment and is targeting the premium class of customers. This global brand is famous for its tagline "May be she is born with it. May be its Maybeline". This segment is a tough call for Loreal since the global brands and our HLL is fighting for its share.
L'Oréal has now introduced their skin care products in to the Indian market. They have two divisions , one catering to consumer and other to the institution ( beauty saloons). I think the strategy to concentrate on the beauty saloons with specific products is one of the smartest marketing moves. Beauticians acts as influencer in the purchasing decisions regarding skin care as well as hair care. Last week when I asked my hair care specialist ( barber) about a good hair cream, he suggested L'Oréal hair cream. Another advantage is that the beauty saloons acts as a medium for showcasing the L'Oréal brands which can generate interest in the consumer. The saloons also benefit by using L'Oréal brands . Hence it is a win-win situation for the brand and the influencer.
With its smart campaigns and careful brand building L'Oréal has emerged as a winner in the Indian market which has seen lot of International brands biting the dust.
Source: ibef.org,Businessline, Loreal.co.in,agencyfaqs,