L'Oreal & The Body Shop

Strength

Exist for more than 100 years.

Ranked 346 among the 500 largest corporations in the
world (Fortune 2009)
Their total revenue is their major strength
Consequent spending on Research and Marketing
plans
Celebrity endorsement with Scarlett Johanssons and
Jane Fonda (Carvajal 2009)
Product variety (2000 products on the market)
Affordability factors are considered
Four different segments:

Weakness

Faced several litigation

For instance:
-The prime concern of L'Oreal is highlighted as being
"Diversity is a Priority" (L'Oreal) however in 2007, according
to The Age, L'Oreal was found guilty of racism and was fined
41,000 US dollar.
-Fallacious advertisement. L'Oreal ads where Penelope Cruz

-Consumer products: Products sold in mass market

retail channels

a L'Oreal model was wearing fake eyelashes, and the ad

-Professional products: Products used and sol in hair

salons

(Style Crunch 2007).

-Luxury Products: Products sold in selective retail

outlets.

-Ads of LOreal Australia claimed their product to be

therapeutics and were proved not to be

-Active cosmetic: dermocosmetic skin care products

sold in pharmacies and specialist section of drugstore.

-Found guilty of racism in 2007 for not wanting to recruit

black women for their advertisement

L'Oreal possess many brands under those different

segments:
Consumer products:

claimed that their mascara would bring 60% longer eyelashes

Planning to stop animal testing in 2013.

Use of nanoparticles in products and this can be
dangerous for consumers.
Scandals facing the acquisition of The Body Shop. The

-L'Oreal Paris
-Garnier
-Maybelline New York
-Softsheen.Carson
-CCB Paris
Porfessional Products
-L'Oreal Professionel
-Kerastase
-Redken
-Matrix
-Mizani
-Shu Uemura Art of Hair
Luxury Product
-Lancome
-Biotherm
-Helena Rubinstein
-Kiehl's
-Shu Uerma
-Giorgio Armani
-Ralph Lauren
-Cacharel
-Viktor & Rolf
-Diesel
-YSL Beaute
Active Cosmetics
-Vichy
-Inneov

main purpose of The Body Shop was to promote natural

product together with their values concerning their
responsibilities towards the environment. When sold to
l'Oreal, it was considered as unethical. Indeed one
example can be that L'Oreal does animal testing and The
Body Shop is against animal testing.
Failed to signed the compact for safe cosmetics (which is
to avoid use of certain chemicals)

-La Roche Posay

-Skinceutical
-Sanoflore

The Body Shop brings in, it's line of natural products

o Natural products attract customer value
o Corporate social responsibility is prompted

Este
e

Lauder
Strength

Estee Lauder now exist for 64 years

Has experience in the market
Known as prestige cosmetics
Hold the second largest market share after L'Oreal
Massive spending on Research and Development,
Marketing strategy and Integrated Marketing
communication strategy
Estee Lauder possesses 27 brands

Weakness

-American Beauty
-Aramis
-Aveda
-Bobbi Brown
-Bumble and bumble
-Clinique
-Daisy Fuentes
-Darphin

expensive products
Nanoparticles in their products
Faced several litigation:
2004 was liable to clean up hazardous waste in
New York. The cleaning was estimated to be worth
US$36million
2005 accused of price fixing and paid
US$175million in cosmetics products to clear the
lawsuit, plus 39 million customers we having a
product between particular days would be eligible
for a free product between $18-25
Failed to signed the compact for safe cosmetics (which is
to avoid use of certain chemicals)

-Donna Karan
-Este Lauder
-Flirt!
-Good Skin
-Grassroots
-Jo Malone
-Kate Spade (divested)
-Kiton
-Lab Series
-La Mer
-MAC Cosmetics
-Michael Kors
-Missoni
-Ojon
-Origins
-Prescriptives (discontinued as of January 31, 2010)
-Sean John Fragrances
-Smashbox Cosmetics[7]
-Stila (sold)
-Tommy Hilfiger
-Tom Ford Beauty

No animal testing