L'oréal - Building a Global Cosmetic Brand

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Case Details:

Case Code : MKTG062
Case Length : 12 Pages
Period : 1993-2003
Pub Date : 2003
Teaching Note :Not Available
Organization : L'Orèal
Industry : Cosmetics
Countries : France

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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L'oréal Makes Waves Contd...

L'Oréal, which had operations in 130 countries in the world, posted a turnover of € 13.7 billion1 in 2001. The company recorded a 19.6% and 26% growth in profit in 2001 and 2002 (half-yearly results), respectively.

Commenting on L'Oréal's performance, Jones said, "At L'Oréal, we are 50,000 people who share the same desire; because it is not just about business but about a dream we have to realize, perfection." Known for its diverse mix of brands (from Europe, America and Asia), like L'Oréal Paris, Maybelline, Garnier, Soft Sheen Carson, Matrix, Redken, L'Oréal Professionnel, Vichy, La Roche-Posay, Lancôme, Helena Rubinstein, Biotherm, Kiehl's, Shu Uemura, Armani, Cacharel and Ralph Lauren, L'Oréal was the only cosmetics company in the world to own more than one brand franchise and have a presence in all the distribution channels of the industry (Refer Exhibit II for a note on the global cosmetics industry).

Background Note

In 1907, Eugene Schueller (Schueller), a French chemist, developed an innovative hair color formula. The uniqueness of this formula, named Aureole, was that it did not damage hair while coloring it, unlike other hair color products that used relatively harsh chemicals. Schueller formulated and manufactured his products on his own and sold them to Parisian hairdressers.

Two years later, in 1909, Schueller set up a company and named it 'Societe Francaise de Teintures inoffensives pour Cheveux.' From the very beginning, Schueller gave a lot of importance to research and innovation to develop new and better beauty care products...

Excerpts >>

1] April 2003 exchange rate: $ 1.08569 = 1 €.

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