1.

LOreal at glance
The Annual Report 2010 The L'Oral Group's main facts and figures for 2010: * Over 100 years of expertise in cosmetics * 5 key areas of expertise: haircare, hair colour, skincare, makeup & fragrances * Products distributed in 130 countries * 19.5 billion consolidated sales in 2010 * 23 global brands * 665 million in R&I investments in 2010 * 612 patents filed in 2010 * 66,600 employees worldwide * These brands'annual sales are superior to 50 million euros.

2. The Business
sIn the battle for global beauty markets, $12.4 billion L'Oreal has developed a winning formula: a growing portfolio of international brands that has transformed the French company into the United Nations of beauty. Blink an eye, and L'Oreal has just sold 85 products around the world, from Redken hair care and Ralph Lauren perfumes to Helena Rubinstein cosmetics and Vichy skin care. The report shall cover L'Oreals presence on the world map as well as its position India since its inception. L'Oreal caters to the market by following the underlined categorization and has different strategies for these product segments. 1.Global Strategies 2.Strategies in India The Product Categories 1. Consumer products The Consumer Products Division is dedicated to offering all consumers its high technology products at competitive prices through mass-market retailing channels. The Divisions brands develop haircare, skincare, make-up and perfume products that meet the aspirations of all of its customers. The Division's 5 international brands are L'Oral Paris, Garnier, Maybelline New York, Softsheen.Carson and Le Club des Crateurs de Beaut.

2 .Professional products The Professional Products Division is at the service of hairdressers worldwide. Our complementary brands meet the requirements of salon professionals in colorants, hair care, texturing and styling formulas and provide salon customers with a wide range of innovative, high-performance products. The Professional Products Division of LOral is made up of four different brands: L'Oral Professionnel, Krastase, Redken 5th Avenue NYC and Matrix. 3.Luxury products The prestigious brands of the Luxury Products Division offer consumers top of the range products. Clients of selective retail outlets (department stores, perfumeries, travel retail outlets, and the brands own boutiques) receive personalized advice at the point of sale, enabling them to choose the products best suited to their needs. Lancme, Helena Rubinstein, Biotherm, Shu uemura and Kiehls offer premium products known for their innovation, performance and quality. The Luxury Products division houses also some of the world's top perfume brands: Giorgio Armani, Ralph Lauren, Cacharel, Paloma Picasso and Guy Laroche. 4.Active cosmetics The Active Cosmetics Department designs and markets dermocosmetic skin care products that are sold in pharmacies and specialist retailers. These products offer consumers proven safety and effectiveness supported by advice from pharmacists and dermatologists. The Departments three brands, Vichy, La Roche Posay and Innov, offer skin care, sun care, and hair care and make-up products.

3. A Complete Global Changeover

In just a decade, LOral has undergone a complete changeover. Ten years ago, 75% of LOrals $5.5 billion annual sales came from Europe, mostly on the French market. LOrals image seemed to be indelibly linked to Parisian sophistication. Last year, the European market represented only 49% of the Groups 13.7 billion dollar revenues, while the American market accounted for 32% of sales (a doubling of the American market share the company had in the early nineties). LOral Paris, the Groups leading brand, is now sold the world over without having lost one iota of its image of French chic. How were these important changes brought about? The first important reason highlighted by Fortune Magazine was the Groups brand development strategy, brilliantly formulated and led to fruition by an international expert. One such outstanding success story is Maybelline. This formerly "Middle America" brand was bought in 1996. In just a few years, its image has now become trendy in such far away places as Japan or China. Its new "international and sexy" look has won over the worlds most stylish teenagers. Adding "New York" to the brands name has made it a huge international success. Today, Water Shine Diamonds lipstick by Maybelline is a symbol of how global LOral has become. This successful product is the result of an initial setback: Moisture Whip lipstick felt too dry to Japanese lips. Thus, the product was sent back to the laboratory, Lindsay Owen-Jones insisted on giving it a new name and Water Shine lipstick was born. After having conquered the Japanese market, it was exported everywhere in Asia and, eventually, throughout the world. Today, it is so popular in Russia that certain colors are out of stock.

The trick will be staying ahead in the game as his powerful rivals seek to play the global branding game. From giant P&G to niche players such as Los Angeles-based cosmetics maker Stila, L'Oreal's competitors are hustling to catch up. in the emerging markets like Japan L'Oreal still trails behind.

4. SWOT Analysis
Strengths
World Brand No.1 & development-586 patents Innovation on IN products Research Range of portfoliodiversity of products Global brandpresence in 130 countries Strong Corporate Social Responsibility policy

Weakness

Emerging markets of developing countries Growing cosmetic and grooming market Newer acquisitionsmore range of products Brand confusion Positioning in the myriad brands Presence remains underdeveloped in emerging markets.

Threats
New channels on the electronic media Local players in the new market expansions Brand cannibalization.