2 .2 Analysis of the marketing activity of the company l'Oréal

Prices and product range

According to investment analysts Morgan Stanley, L'Oréal is the only cosmetics company in the past five years to increase its market share in the world and in the U.S. in terms of cosmetics and hair care products.

L'Oréal uses common methods of their activity in all countries at the same time adapting them in terms of characteristics of a geographic location of the market.

L'Oréal is committed to ensuring that all items would be that it produces sold in all corners of the globe.

Main types of brands have the following division: "The goods for the mass market" - the brand, the products of which are affordable for most buyers; "Goods for salons" - specific goods intended for use by professional hairdressers, stylists, etc.; "Perfumery and cosmetics" - offers a range of international brands; "Cosmetics special purpose" - includes special-purpose products (including some dermatological preparations).

Main types of marks (examples cosmetics are presented in Appendix 1):

1. "Products for the mass market"

2. "Cosmetics special purpose"

3. "Goods for salons"

Professional cosmetics company used in hairdressing, styling studios and beauty salons. She is represented by the brands L'Oréal Professionnel, Redken, Kerastase, Ke'raSkin, Matrix.

L'Oréal cosmetics designed for people of different age, income and gender.

L'Oréal Group strives to meet the needs of as many buyers of cosmetics. Thus each of its brands has its price level: very high, and high (stamps, bearing the names of famous designers); high and medium; medium and low (brands that combine low prices and high quality). Goods groups can meet all possible needs that arise from buyers considering various cosmetics income. Prices are differentiated depending on the type of brand goods.

Prior to 1996, L'Oréal products was aimed at an adult audience. Brand Maybelline, L'Oréal acquired in 1996, has taken a niche cosmetics, designed for a young audience (according to L'Oréal, from 1996 to 2002 Maybelline sales outside the U.S. grew by 93%). According to research by L'Oréal, conducted 10 years ago, the company's products target group were women 20-50 years; at this point - 15-70. According to the forecast L'Oréal, in another 10 years age range of the target audience of the company expanded again - from 12 to 90 years.

Over the past 10 years, L'Oréal transformed from a native French company with a global audience of European concern, whose products are distributed from Delhi to Melbourne.

Advertising and product promotion methods

One of the main methods of promoting products, including and L'Oréal, is advertising. Allocated to it most of the assets of the company. It is because of advertising consumers learn about the appearance of some means or other, new products. For L'Oréal main means of transmission of the advertising information are: television (L'Oréal is one of the largest advertisers in Russia), various magazines (Health, Burda moden, Bazaar, Elle, etc.), signs, ads on transport and billboards. Advertisement on vehicles for L'Oréal is a Russian company Irex as the largest firm in the industry (see Annex 2).

The analysts of Merrill Lynch, L'Oréal spends on advertising and marketing about 30% of sales revenue, while competitors spend on promotion 25% of revenue.

Particular attention is paid to the growing Asia Pacific market. Over the past 10 years the proportion of L'Oréal sales in Eastern Europe fell by 12% (data of L'Oréal), but sales in Asia grew by 20%. Andy Smith, an analyst at Citigroup Smith Barney: «This is a great development model. L'Oréal manages to find a geographical point, where there is potential for growth, and achieve dominance in these regions. "

When in 2002, L'Oréal began its expansion in China, its income rose 61% (in 2002), while the entire cosmetics market in this country grew by only 14%.

L'Oréal slogan initially sounded like «L'Oréal. Because I deserve it. " However, a few years ago it was decided to change it to «L'Oréal. After all, you deserve it. " According to a spokesman for L'Oréal, this change was made "to Potrebitelnitsa felt closer to the mark and slogan evoked in her desire to become that which is worthy, not just envy of beauty, which advertises the product, stating that she is worthy of this" .

L'Oréal - a vivid example of using celebrities for promotion of their brands. In advertising, L'Oréal participate simultaneously 15-20 beautiful women in the world - top models, singers and actresses. In the past four years by persons L'Oréal began about 10 stars of world renown.

So, in February 2000, advertising by means of gamma way Skincare Hydrofresh / L'Oréal Plénitude, aimed at women aged 18 to 30 years old, became a French actress Virginie Ledoyen. Virginie started her film career at age 13 in the movie Mima Filomena Esposito. It is curious, motivated, loves Dostoyevsky and Anglo-Saxon literature of the XIX century.

February 21, 2001 L'Oréal signed an exclusive contract with the soloist trio Destiny's Child Beyonce Knowles. Carol Hamilton, director of L'Oréal USA: «She's smart, talented, beautiful and full of vitality. In the end, it turns out so well our catchphrase "Because I deserve it!" ".

In August 2001, L'Oréal was invited to advertise cosmetics for mature women legendary Catherine Deneuve. Despite the fact that when the actress was 57 years old, she still looked great. Catherine Deneuve began her career at age 16 and starred in 94 films. "Catherine Deneuve - a unique beautiful woman - said a spokesman for L'Oréal. - She looks terrific throughout his career. Deneuve is recognizable around the world and will symbolize the French charm and elegance. "

In August 2001, the company has become the face of French Chinese movie star Gong Li. Ginseng Lan, PR-manager representation L'Oréal in China: "Over the past five years, the ratio of Chinese women's beauty has changed radically: they have to spend a fortune buying products western cosmetic giants. The market is developing very fast (up to 10-20% per year). L'Oréal began the conquest of the Chinese market in 1997, much later Japanese cosmetic companies (eg, Shiseido). Fashion ideas are changing rapidly, and if earlier considered only beautiful black hair, Chinese women now experimenting with color, L'Oréal and helps them in their products. "

September 26, 2001 a contract with L'Oréal in the amount of $ 750,000 signed-known British actress Claire Forlani. 29-year-old Forlani represented mascara Intensifique. Claire - a native of West London. Career as an actress, she began in the '90s, after serious study dance and acting. Forlani to fame came after starring in the movie "Meet Joe Black." "Amazing facial features Claire and especially her beautiful blue eyes naturally adorn this new product," - said the representative of the company.

In October 2002, face paint for hair L'Oréal Open Color became an actress Jessica Biel (in 2002 she was 20 years old). Jessica starred in the TV series "Seventh Heaven", in the movie "Summer Catch" and "Law of Attraction."

In May 2002 the company signed a contract with the Australian actress and singer Natalie Imbruglia. L'Oréal representatives explained their choice of "beauty, genuine charm and strong character" Natalie.

In 2002, the new face of cosmetic line L'Oréal Air Wear became an actress and model Noemie Lenoir. Lenoir's modeling career began in 1998, her face has already managed to appear on the covers of Vogue, Elle and Marie Claîre.

In May 2003, a contract with L'Oréal signed a 30-year-old actor Ben Affleck (known to Russian audiences for the films "Shakespeare in Love," "Pearl Harbor"). He became the face of product lines for hair care for men. "Ben embodies a new generation of men whose strength is manifested in their personality, - said the representative of L'Oréal. - But they are not afraid to follow and also their appearance. "

The most difficult in selecting celebrities to participate in the campaign is to find the most striking features of the image of stars and transpose it to the brand. Androgynous Jovovich, individuality which L'Oréal refers to as' daring, brilliant, fabulous, "advertises hair dye Colour Riche, concealer Air Wear, nail polish Jet-Set. Jennifer Aniston, the star of numerous soap operas, with the image of a "neighbor girl", filming a commercial shampoo Elvive and hairspray Elnett. In 2002, L'Oréal decided to promote lipstick Shine Délice as "perfect, luxury, sensual" with "juicy juicy shades for lips." French model and actress Leticia Casta was chosen to advertise this lipstick because of its "freshness and sexuality."

Kind of distribution and promotion of the products are: discounts on products that always attracts special people; which we launched Lubo (souvenirs) for buying certain products L'Oréal; promotional coupons, with detailed information on cosmetic products; sellers' behavior that just is not important enough, as rude and unprofessional behavior of sellers can negate all the efforts to promote the products of this company. Example of advertising is given in Appendix 3.

Competitors

Like other large company L'Oréal has its rivals in some products. Since the products are very diverse, the competitors in the market have more.

The main purpose of L'Oréal is to satisfy the greatest number of consumers better than their competitors, creating just such a product that consumers need.

L'Oréal creates technologically advanced products, special properties which are extremely important for cosmetic consumers. This protects the L'Oréal offers from competitors of similar products that do not have such distinctive qualities.

Since L'Oréal - a global company, its total costs are high and tend to increase. However, the average costs of the company remain relatively low due to the constant growth of total sales in the global market.

Financial results of the L'Oréal confirms the fact that the company has a stable external competitive advantage. Since the cosmetics sector is a global industry, the most dangerous competitors L'Oréal will like it a global company.

Of significant competitors can be identified (by assortment groups) Schwarzkopf - means for hair care, Oriflame - means skincare, Vela - hair styling.

These companies have a comparative advantage in selected assortment groups.

In order to withstand competition, you need to understand what are their advantages and eliminate possible deficiencies of the company, and engaged than L'Oréal.