1

MINOR PROJECT REPORT

ON
A STUDY ON ADVERTISING STRATEGY OF
LOREAL INDIA

Supervised by:

Submitted by:

Ms. Ruchika Gahlot

Nilakshi Garg

Assistant Professor

04221201811
BBA (B&I) (3rd SEM)

Dept. of Business Administration

Session- 2011-2014

MAHARAJA SURAJMAL INSTITUTE

Department of Business Administration
Recognized by UGC u/s 2(f)
Affiliated to Guru Gobind Singh Indraprastha University
C-4, Janakpuri, New Delhi

CERTIFICATE
This is to certify that the research project initiated to certify the ADVERTISING STRATEGY OF
LOREAL INDIA is the innovative effort of NILAKSHI GARG ROLL NO-04221201811 and it has
been accomplished under my guidance.

MS. RUCHIKA GAHLOT

ASSISTANT PROFESSOR

(Signature)

ACKNOWLEDGEMENT
A project can never become a success with efforts of only one individual. It requires a group of people to
complete a project at its best. It may be your friend, your teacher and your family member.
The present work is an effort to throw some light on ADVERTISING STRATEGY OF LOREAL

INDIA. The work would not have been possible to come to the present shape without the able guidance,
supervision and help to me by number of people.
With deep sense of gratitude I acknowledge the encouragement and guidance received by
MS. RUCHIKA GAHLOT, ASST. PROFESSOR, DEPT. OF BUSINESS ADMINISTRATION and other
staff members.
I convey my heartfelt thanks to all those people who helped and supported me during the course, for completion
of my Project Report.

NILAKSHI GARG
ENROLL. NO. 04221201811
Course: BBA (B&I) 3rd Sem.

CONTENT
CHAPTER

TOPIC

PAGE
NUMBER

Chapter-1

Introduction

Objectives of study

23

Research methodology

23

Limitation of study

24

Chapter-2

Profile of seven sister states

26

Chapter-3

Analysis and interpretation of data

63

Chapter-4

Conclusion and recommendations

Bibliography

Annexure
Questionnaire

82

85

CHAPTER 1
introduction

1.1

INTRODUCTION

1.1.1 History of LOreal:

LOreal was founded in the year 1909 by Eugene Schueller, a French chemist who developed an innovative hair
color formula. LOreal famous advertising slogan is "Because Im worth it". It has recently been replaced by
"Because you're worth it". Indias contribution to the growth of the global cosmetics market is about 60 percent.
LOreal advertising account is handled by Mccann Erickson. The operations in India are conducted through a
judicial mix of global and local methods of advertising to appeal to the Indian consumers.
LOreal got its start in the hair-color business, but the company soon branched out into other cleansing and
beauty products. LOreal currently markets over 500 brands and many thousands of individual products in all
sectors of the beauty business: hair color, permanents, hair styling, body and skin care, cleansers, makeup and
fragrances. The company's products are found in a wide variety of distribution channels, from hair salons and
perfumeries to hyper - and supermarkets, health/beauty outlets, pharmacies and direct mail.

1.1.2 ABOUT THE STUDY:

An advertising strategy is a campaign developed to communicate ideas about products and services to potential
consumers in the hopes of convincing them to buy those products and services. This strategy, when built in a
rational and intelligent manner, will reflect other business considerations (overall budget, brand recognition
efforts) and objectives (public image enhancement, market share growth) as well. Most advertising strategies
focus on achieving three general goals:1. Promote awareness of a business and its product or services.
2. stimulate sales directly and "attract competitors' customers"
3. Establish or modify a business' image.
In case of LOreal, products depend on the respect of Differences. Therefore, it creates and gives you the
represent of LOreal by L'Oreal advertisements on T.V. and everywhere you could see.
L'Oreal products estimate by the professional chemists and researchers. You could resign in its quality.
It produces the advertisements on 3 main points.
-Age
-Skin
-Hair

1.2 OBJECTIVES OF THE STUDY:

To study the importance and development Of LOreal India in todays scenario.
To understand the various Advertising Strategies which LOreal India has adopted to survive in highly
competitive industry.
To make a comparative study of the major players in Indian Service Provider.
To give Recommendation on the basis of my Knowledge& Study.

1.3 RESEARCH METHODOLOGY

SOURCES OF DATA COLLECTION

The goal of the research process is to produce new knowledge. Research methods are the sources of data
collection i.e from where the information is obtained.( The methodology adopted for this project is exploratory
in nature since there is no hypothesis that has to be tested. The conclusions have been drawn by exploratory
research work).
Data collection methods can be broadly classified into

Primary methods
Secondary methods

1. Primary DataThe data is derived from a new or original research study and collected at the source,
e.g. QUESTIONNAIRE, surveys, observation, etc.
2. Secondary Data- Secondary data is the data that have been already collected by and readily available
from other sources.

For this project both primary data & secondary data has been collected.

1. Primary data is collected in this project by filling questionnaire from 50 individuals targeting different
groups to see the response for LOreal.
Questionnaire-questionnaire is a source or a document through which we can know about the need of the
society or interest.

2. Secondary method is collected by: internet ,

books ,
magazines or
Journals.
Online advertisement research.

1.4 LIMITTATIONS OF STUDY

The available data may not suit the current purpose of research, due to incompleteness,
generalities and so on.
Conflicting data may exist.
It may be difficult to determine the accuracy of secondary data.
The duration of the project work was short enough to allow the full exposure.

CHAPTER 2
Profile of the
organization

10

PROFILE OF THE ORGANISATION

2.1 COMPANY PROFILE

In India, LOreal brands are present in the following four main categories:
Consumer Products: LOreal Paris, Garnier, Maybelline New York
Luxury Products: Lancme, Kiehls, Ralph Lauren, Giorgio Armani, Diesel
Professional Products: LOreal Professional Matrix, Krastase, Kraskin Esthetics
Active Cosmetics: Vichy, La Roche Posay, Manufacturing, Plant
LOreal , the leading cosmetics manufacturer in the world, arrived in India 15 years ago and has been growing
at about 30% year-on-year in the last decade. It then comes as no surprise that LOreal has decided to sharpen
its focus on the Indian consumer. LOreals sixth R&D center worldwide is expected to start operations in
Mumbai, India by the end of this year. Whats more, almost 70% of the launches from the new facility shall be
designed and developed for the Indian market. LOreal shall have to face stiff competition from Procter &
Gamble and Unilever , which have been present in India for much longer and have customized their product
offering considerably to match the Indian consumers tastes and spending power.
Reports value LOreal with a $23.27 stock price estimate, roughly at parity with its current market price.
In addition to the head office in Mumbai and regional offices in New Delhi, Bangalore, Chennai & Kolkata, and
LOreal India also operates a manufacturing plant and distribution centre located in Chakan, Pune. Set up in
2004, this factory has been awarded the international certifications of ISO 14001, ISO 9001-2000 And
OHSAS. The Chakan plant specializes in the manufacture of hair-colour, hair care and skin care products,
producing 190 million units under the strictest of standards.

11

2.1.1 Ethics
L'ORAL has been built around fundamental values which have guided us throughout the life of our company,
and continue to do so today. Our values have shaped our culture, and they under pin our reputation.

Jean-Paul AGON, Chairman & Chief Executive Officer

At LORAL, we believe that everyone aspires to beauty. Our mission is to help men and women around
the world realize that aspiration, and express their individual personalities to the full. This is what gives
meaning and value to our business, and to the working lives of our employees. We are proud of our
work.
LOreal Spirit
As A Business
Our strategy for leadership is based on continuous investment in rigorous scientific research and development.
This enables our brands to deliver products which are innovative, highly effective, practical and pleasant to use,
and which are manufactured to the most demanding standards of quality and safety. We aim for excellence, and
constantly challenge ourselves and our methods. We place great value on honesty and clarity: our consumer
advertising is based on proven performance and scientific data. We are committed to building strong and lasting
relationships with our customers and our suppliers, founded on trust and mutual benefit. We do business with
integrity: we respect the laws of the countries in which we operate and adhere to good corporate governance
practices. We maintain high standards in accounting and reporting, and support the fight against corruption. We
deliver long-term, sustained shareholder value by protecting and making the most effective use of company
assets.
As An Employer
We aim to make LORAL a great place in which to work. We know that our employees are our greatest assets.
They are entitled to a safe and healthy working environment: one in which personal talent and merit are
recognized, diversity is valued, privacy is respected, and the balance between professional and personal life is
taken into account. We believe in offering our employees a stimulating environment, exciting personal
opportunities and a chance to make a difference. We encourage an atmosphere of openness, courage, generosity
and respect, so that all our employees feel free to come forward with their questions, ideas and concerns.

12

As A Responsible Corporate Citizen

We play our part in creating a world of beauty and fairness. We are mindful of our impact on the natural
environment, including biodiversity, and constantly seek to reduce it: we are determined to avoid compromising
tomorrow for the sake of today. We make a positive contribution to the countries and communities in which we
are present, and respect local cultures and sensitivities. We are committed to the respect of human rights. We
want to help end the exploitation of children in the workplace and the use of forced labour. We want an end to
animal testing in our industry, and we contribute to the development and acceptance of alternative methods. We
actively seek out and favor business partners who share our values and our ethical commitments.
This is the spirit in which we operate: the LORAL SPIRIT.
Ethics as a Business
Our strategy for leadership is based on continuous investment in rigorous scientific research and development.
This enables our brands to deliver products which are innovative, highly effective, practical and pleasant to use,
and which are manufactured to the most demanding standards of quality and safety. We aim for excellence, and
constantly challenge ourselves and our methods. We place great value on honesty and clarity: our consumer
advertising is based on proven performance and scientific data. We are committed to building strong and lasting
relationships with our customers and our suppliers, founded on trust and mutual benefit. We do business with
integrity: we respect the laws of the countries in which we operate and adhere to good corporate governance
practices. We maintain high standards in accounting and reporting, and support the fight against corruption. We
deliver long-term, sustained shareholder value by protecting and making the most effective use of company
assets.
LORAL has always had strong values which have shaped our culture and built our reputation. Our core
values are integrity, respect and excellence. We are judged not only on what we do but also on the way we do it.
All that we have done and all we continue to do is voluntary and proactive. Ethics gives us a shared vision and
references.
Quite simply, we believe that the global leaders of tomorrow are those companies who have not only integrated
ethics

into

their

strategic

planning

but

also

into

their

day-to-day

business

practices.

At LORAL, we consider that ethics continues where rules end and that we should always ask ourselves not
can we do it but should we do it. Ethics therefore allows us to earn and retain the trust of our stakeholders
so that together we can grow and contribute usefully to the society in which we live.

13

Our values are present in all aspects of our activities. The most visible examples are of course our strong
Sustainable Development and Diversity policies but they are also integrated into less visible aspects such as our
Purchasing Departments responsible sourcing policy and our high standards with regards product quality and
safety.

Our Policies
Ambition
Reflect our consumers diversity of origins within our teams at every level (in terms of nationality, ethnic
or social origin, age...), while maintaining our standards of excellence in terms of competencies.
Promote gender equity within our teams: promote the access of women to positions of responsibility,
facilitate gender equity in functions that are currently over-staffed by men or women (Marketing, Industry), and
ensure equal treatment in terms of salary.
Encourage the employment people with disabilities.
Valorize work experience in anticipation of a longer work life.
Develop an inclusive managerial culture, respectful of all.
Our Diversities Matrix
LOreal based its approach on a Diversities Matrix, composed of 6 priority dimensions and 7 action levers:

2.2.1 PRIORITY DIMENSIONS

1. Nationality
2. Ethnic & Cultural Background
3. Social Promotion
4. Gender
5. Disability
6. Age

14

2.2.2 ACTION LEVERS

1. Recruitment & Integration
2. Training
3. Career Management
4. Management & Inclusion
These dimensions and action levers are enhanced by:

Actions on the Ecosystem

Policy & Steering

Principles of Action
Respect our standards of excellence in

terms of competencies and individual

performance.

Attract candidates from outside our usual talent sources and identify profiles that will bring new
perspectives.
Promote the emergence of a diversified ecosystem by inviting partners (suppliers, clients) to join our
actions, and by participating in innovative collective initiatives.
Measure and report our progress.
Our commitments
L'Oreal Diversity initiatives have been recognized by international awards:
2004: The Diversity Best Practices Global Leadership Award
2005: The Anti-Defamation League's International Leadership Award
2006: The Diversity Leadership Council's Diversity Innovation Award World
2007: LOreal ranked as one of the worlds most ethical companies according to Ethisphere magazine
2009: Pace Leadership in Ethics Award presented to Jean-Paul Agon
2010: LOreal headquarters obtains the Diversity Label
Message from the Chief Executive Officer of LOreal
Jean-Paul Agon, Chief Executive Officer

15

"Today we live and work in an increasingly diverse world, a world of individuals with different cultural and
ethnic backgrounds, unique styles, perspectives, values and beliefs. A diverse workforce in all functions and
levels enhances our creativity and our understanding of consumers and allows us to develop and market
products that are relevant."
Jean-Paul Agon
Chief Executive Officer

2.3 PRODUCTS
2.3.1 Garnier (Consumer Product)
We believe health will be the major concern of this century, and that maintaining a healthy body and mind is
the key to enjoying a long and beautiful life.
We believe good health is the key to releasing natural beauty.
We believe our role is to offer solutions which improve the beauty and health of skin and hair. And with
wellness comes a sense of well-being. After all beauty should be a pleasure, not a duty.
We believe only the power of technology can release the true power of nature. Thats why, at every
opportunity, we use active natural ingredients. Using cutting edge technologies such as Bio-screening and
advanced extraction techniques, our scientists are constantly working to identify, extract and test the most
effective ingredients in nature so everyone can enjoy their proven benefits and see real, visible results.
We believe in a modern approach to beauty, whose essence is positivity, simplicity and radiance. Our approach
is forward-thinking, with a sense of optimism for the future, because we believe everyone should be able to look
good and feel good about themselves.
With Garnier, everyone's invited - and nobody's excluded.

16

2.3.2 LOreal Professional (Professional Product)

All Different: Each Unique
LOreal Professional works in partnership with LOreal Professional salons to help hairdressers to dream excel
and succeed. Dream Hair is the fashion accessory of today, worn everyday to reflect the personality of the
individual, as important to the total look as any item (element) of catwalk clothing. Everything we do reflects
this passionate interpretation - from our inspirational live shows, our partnership with Central Saint Martins
College of Art & Design, to our seasonal colour collections. With LOreal Professional you'll be inspired to take
fashion to your heart and create beautiful hair. Excel LOreal Professionnel combines our passion for fashion
with cutting edge technology, to bring you a portfolio of high performance products that meet your needs,
allowing

you

and

your

hairdresser

to

push

creativity

and

achieve

outstanding

results.

Succeed LOreal Professionnel is the business and creative partner of over 1 million of the world's most
dynamic hairdressers. LOreal Professionnel partners are growing faster than the total salon market. Be part of
this success. For example:-

L'Oral Professionnel Srie Expert Liss Ultime Shampoo (250ml)

For super smooth, luscious locks bursting with vitality and lustre, LOral Professionnel srie expert Liss
Ultime Shampoo is the only solution. It is the ultimate shampoo for frizzy, rebellious hair. This product replaces
Liss Extreme Shampoo.
LOral Professionnel srie expert Liss Ultime Shampoo is formulated with Oil Incell technology, which
cleverly mimics the hairs lost ceramides. This combined with the addition of highly nourishing argan and olive
oils means that this shampoo leaves hair smoothed, conditioned and gleaming with health.

17

2.3.3 LUXURY PRODUCTS

Ralph & Lauren
"I'm Interested In Longevity, Timelessness, Style - Not Fashion."
Ralph Lauren
Since he first introduced the Polo brand as a line of men's ties in 1967, Ralph Lauren has come to represent
timeless, authentic style. His vision is not to create fashion, but to create a world of living that transcends
trends. In 1978, Ralph Lauren launched into the world of fragrance with his signature brands, Polo for men and
Lauren for women featuring the icon polo player design. Since, he has developed new fragrances that touch on
different

emotions

and

ways

of

living,

including:

Safari (men & women): sophisticated world of elegance and adventure

Polo Sport (men & women): a world of sporting excellence and physical well being
Romance (men & women): a celebration of timeless feeling of falling in love
Ralph & Ralph (women): fun, colorful expression of a younger generation
Polo Blue (men) & Ralph Lauren Blue (women): reinventing a modern expression of casual elegance
Lauren Style (women): the newest, embodies classic and timeless style
Diesel
Fuel for Life the Concept "Are you alive?"

18

It fuels you on to push boundaries you never dreamed of reaching and go beyond to attain a state of happiness
that you never knew existed.
A fresh top note of grapefruit and anise adds a zing to the first spritz of fragrance. The heart notes reflect
luscious raspberry and light lavender which lead you into fruity fantasies while sitting subtly on a base of heavy
heliotrope which is distinctive.
This aromatic fougere from Diesel is enclosed in a simple yet elegant bottle layered with classy leather that
brings out all earthy life of the exquisite fragrance.
More than a fragrance, Fuel for Life is an elixir, a pure concentrate of emotions that makes you feel alive. A
sexy and energizing potion for men and women with "retro-modern" notes embodying the essence of
Diesel... Fuel for Life, capturing Diesel's creativity and unpredictability, is a source of adrenalin, for people
willing to experience new emotions and seeking an alternative type of energy! It is dedicated to passionate

19

individuals, who have chosen to live life to the fullest, hungry for intense moments, seduction and sensuality,
knowing no limits. But be careful this elixir is incredibly active and powerful use it with caution!

2.3.4 The FRAGRANCES

The men's and women's versions of Fuel for Life are two timeless archetypal perfumes.
To achieve this, Renzo Rosso and the FIRMENICH perfumers (Annick Mnardo, Jacque Cavallier and Thierry
Wasser) chose to position the two fragrances in the scent families most emblematic of femininity and virility:
chypre and heather. This resulted in two retro-modern perfumes, a mix between traditional perfumery and a
futuristic outlook Fuel for Life: a potion to energize, an elixir fuelling lust for life, a secret for successful living.

Fuel for Life, feminine

Fuel for Life couldn't have been anything else but a chypre. This family of perfumes drawn from the legacy of
femaleness is also the most ambivalent, the most sensual and above all the least romantic: always between
flower and wood, it swings between sky and earth, between spirit and flesh. The structure of Fuel for Life
clearly echoes this ambivalence: the duality of jasmine and patchouli is immediately apparent. In other words, it
oscillates between the white flower - supposedly virginal - and the wooded and ambered complexity of that
Indonesian leaf - patchouli -whose fragrance always brings to mind undergrowth and languor.
What stands out is an overdose, an unexpected portion of cassis: a combination of basic blackcurrant - a natureprint of Burgundy crme de cassis - and of blackcurrant flower, animal and sharp. The chypre attracts the fruit.
Above all, the surprise arises from the fact that all these notes seem to converge on to the indole, which is this
fragrance's centre of gravity. It is here that dwell its life forces, its sensuality, its drive: in this savage and carnal
expression which, as you dilute it, takes on the accents of an intoxicating flower and a distinctive sensuous
brilliance. Through its characteristic counterpoint, Fuel for Life becomes a masterpiece of tensions.

Fuel for Life, masculine

Threading the heart of the fragrance, Fuel for Life's heather chord reflects the most ancient and most classical
codes of masculine perfumery: lavender on a base of coumarine, a note without which heather is only lost
illusion. Yet Fuel for Life cannot be reduced to the tradition of its family of scents, because much more than its
ingredients, it is a suggestion of light that strikes the nose as it does the imagination. Probably never before has

20

the male being treated with such attention to clarity and modernity. In the same way, it's not just a list of
primary substances - a better word would be vibrations. A first vibration, aromatic and cool, created by a subtle
dose of star anis, gives it a polished brilliance, which irradiates the fragrance without a hint of roughness. The
second vibration is that of frambinone: very close to white musk, a trifle understated at first encounter, but
which comes alive on contact with the skin and gives Fuel for Life a fruitiness that once again is unprecedented
in a male eau de toilette. An impression reinforced by the irresistible lightness of heliotropine. A complete
opposite, close to contradiction with the second, a third woody and ambered vibration suggests a more assertive
virility: clear, multifaceted but fundamentally sensual...and natural, thanks to the everlasting flower.

For example:-

L'Oreal Safari Men

Safari Cologne by Ralph Lauren, Launched by the design house of ralph lauren in 1992, safari is classified as a
refreshing, spicy, lavender, amber fragrance. This masculine scent possesses a blend of lemon, lavender,
leather, cinnamon, oakmoss and sandalwood. It is recommended for daytime wear.

21

The Bottle
The simplest idea of a bottle becomes a cult object: a sexy and vintage style which belongs to the heritage of
Diesel.

Two

bottles

which

you

can

dress,

undress,

keep

nude.

Do

as

you

will!

Designed by Fabien Baron, the men's bottle takes inspiration from a liquor flask and the women's bottle from a
1930s phial. Showing or maybe concealing the alchemy they contain, the women's bottle is covered with a pale
ruffle of lace that plays with the transparencies of the bottle and the liquid it contains, while the men's bottle
comes in a canvas cover with vintage treatment, which can be unzipped at the bottle's shoulder. The sexy
vintage packaging of Fuel for Life is wild and sensual, thanks to the random decoration of the canvas and
lacework, and the possibility to have 5 differently engraved caps. Each bottle becomes a unique work of art, an
experience in itself.
Following its global strategy of bringing the country-of-origin formula to new markets, LOreal came to India
with GARNIER range of products from the low-end brand of their international portfolio. GARNIER became a
wholly owned subsidiary in 1994

22

LOreal entered India with Excellence crme in 1996, the first brand signed as LOreal Paris.
Transiting from the Consumer Product segment to their Professional Products range, LOreal set up the
Professional Product division in 1997. This division required a different handling and LOreal set two
development centers in New Delhi and Mumbai to train the salon owners and professional hairdressers. This
also marked the entry of Majirel Hair Color in India.
LOreal in India was looking at widening their portfolio along with deepening the product lines. In 2002, a
significant development was the launch of VICHY that marked the introduction of Active Cosmetics
Department. This is a very niche, premium product from LOreal. In fact, over the three years of its presence
its coverage is just 80 chemists all over India.

23

ADVERTISING STRATEGIES:-

LOreal woos aam aadmi with dual pricing strategy:-

Drops prices for hair care range

MUMBAI, JULY 2:
LOreal India is adopting a dual pricing strategy for the Indian market. The French multinational has
decided to make its hair care range under LOreal more affordable, bringing it under the masstige
segment. At the same time, it has retained its premium positioning in the color cosmetics and skincare
segment.
It has also introduced sachets for its shampoos and conditioners with the hope of taking its distribution
into the hinterland.
Mr Satyaki Ghosh, Director, Consumer Products Division, LOreal, told Business Line, We have a dual
positioning in India. In hair care, we are changing from super premium to the masstige segment and moving to
the centre of the market. However, we will continue a premium positioning in the skin care and cosmetics
segment.

24

LOreal took its first big price drop (25 per cent) for its hair care range after it started manufacturing
shampoos in India in 2010. Recently, it took another price cut of four per cent to peg its 100 ml
shampoos at Rs 69.
1. We have not gone mass with our shampoos but continue to remain in the prestige segment but closer to
the mass market, explains Mr Ghosh.
The MNC believes that it can afford to have a dual positioning strategy with LOreal as its other brands such as
Garnier and Maybelline (with overlapping categories in hair care, skincare and cosmetics) can fill the gap with
their lesser priced offerings while it continues to have premium pricing in certain categories.

PREMIUM IMAGE
At the same time, LOreal does not want to erode its premium image in shampoos at one go and has kept

its pricing a tad higher than its nearest competitors.

So while LOreal Paris shampoos are priced at Rs 69 for 100ml, while Pantene is at Rs 59 and HULs

Dove at Rs 64.
We are not mass and still at a slight premium than our nearest competitors for LOreal Paris

shampoos, adds Mr Ghosh.

Currently, LOreal is the third largest player in shampoos after HUL and P&G.
Moreover, LOreal reaches out to 2,300 towns and covers seven lakh outlets.
We expect to go deeper into India with our sachets and reach out to an additional 2,000 more towns,

says Mr Ghosh.
LOreal India, the Indian subsidiary, was set up in 1994 and is today growing at a 30 per cent CAGR .

25

FUTURE PLANS: L'Oreal to invest Rs500cr in India for more factories, labs
1.

L'Oreal plans to invest Rs500cr to open more factories, laboratories and an innovation centre in
India, wanting it to be one of its top six markets in the world by the end of this decade, a top official
said.

2.

L'Oreal India targets 1bil (Rs6,300cr) from its business in the next few years, up from Rs1,000cr in
calendar 2010.

3.

The company wants to compensate for its late-mover disadvantage by flooding retail shelves with
global products as well as brands developed locally.

4.

In sales, HUL is twenty times bigger than L'Oreal, while Procter & Gamble is double its size.

L'Oreal finds India worth it

1. LOreal India feels with almost 70 per cent locally designed and developed products it highlights
just how important the Indian market is. The balance 30 per cent will be products from the
international stable.
2. Jacques Challes, MD, argues that the Indian units of P&G and Unilever have been around longer
than LOreal. In fact, LOreal that came to India 15 years ago had a compounded annual growth rate
(CAGR) in the last decade of about 30 per cent.
3. The brand intends to maintain this pace of growth and in the next 10 years it should be amongst the
top five in the LOreal universe.

26

SOME OF THE ADVERTISEMENTS:-

27

PRODUCTS OF LOreal India

outlet of loreal

fjhf

As cheap as near rs. 300

28

Some few examples of fragrance products.

Skincare products ( as cheap as near rs 400 with heavy discounts )

29

Haircare products:- minimum price near rs 475.

Minimum prices near about rs 500.

30

SWOT ANALYSIS

Brand imageWorld No.1

Research & development-586 patents
Innovation on IN products
Range of portfoliodiversity of products
Global brandpresence in 130 countries
Strong Corporate Social Responsibility policy

Strengths

Brand confusion
Positioning in the myriad
brands

Presence remains
underdeveloped in emerging
markets.

Weakness

Emerging markets of developing

countries
Growing cosmetic and grooming
market
Newer acquisitionsmore range
of products

Opportunities

New channels on the electronic media

Local players in the new market
expansions
Brand cannibalization

Threats

31

CHAPTER 3
Analysis & interpretation
of data

32

ANALYSIS AND INTERPRETATION OF DATA

3.1 Data Analysis
Question1: TOTAL NUMBER OF WORKING AND NON WORKING RESPONDENTS.
(A) Working
(B) Non working

Figure 1

43

57

working
non working

Interpretation:
The above pie diagram indicates that out of the total 100 respondents surveyed, 43% are working and the
remaining 57% are not working and are mostly students.

33

Question2: GARNIER USAGE AMOUNG WORKING RESPONDENTS

(A) Use
(B) Dont use

FIGURE 2
30

USE
70

DON'T USE

Interpretation:
Out of the total 43 working respondents surveyed, only 30% of them dont use any of the Loreal product, the
remaining 70% of the working respondents use Loreal products. This indicates that the brand is popular
amongst the working people. The respondents so surveyed were well aware about the brand and were also
aware about almost all the product lines being offered by Loreal, be it in skin care or hair care. This result
indicates that Loreal has a well defined target market catering mainly to upper middle class consumers which is
mainly why the working respondents are frequent users of different products of Loreal.

34

Question3: LOREAL USAGE AMONG NON WORKING RESPONDENTS

(A) Use

(B) Dont use

Figure 3
16

DON'T USE
USE
84

INTERPRETATION:
Out of the 57 non working respondents surveyed, about 84% of the respondents use Loreal products which
means about 47 out of 57 people use Loreal products and 16 % of the respondents dont use any of the Loreal
products. This again indicates that the brand is popular among even the non working respondents who are
majorly student in our survey.
The inference that can be drawn from the above 2 pie charts is that irrespective of whether the consumers are
working or are students, the brand has the good popularity. This means that the brand has successfully caters to
the needs of the youth as well as the falling in the age bracket of 35 to 55.

35

Question 4: PREFERENCE FOR HAIR CARE AMONG WORKING RESPONDENTS

(A) Skin care
(B) Hair care
(C) Both

Figure 4
4
18

SKIN CARE
HAIR CARE
78

BOTH

INTERPRETATION:
Out of the 43 people who are working, about 29 of them use Loreal product and out of these 29 people, only 4%
of the respondents use only skin care products and 18% of them use only hair care products while a major
chunk of 78% of the respondents use both skin care and hair care products of Loreal .This indicates that the
customer are regular and loyal users of almost all the product lines of Loreal.

36

Question5: PREFERENCES OF HAIR CARE PRODUCTS AMONG NO WORKING RESPONDENTS.

(A) Skin care
(B) Hair care
(C) Both

Figure 5
28
43
1st Qtr
HAIR CARE
29

BOTH

INTERPRETATION:
Out of the 57 people who are non working, about 36 of them use Loreal product and out of these 36 people,
only 28% of the respondents use only skin care products and 29% of them use only hair care products while a
major chunk of 43% of them use both skin care and hair care product of Loreal. This again indicates that
majority of people like both the segment of Loreal built unlike the working consumers the non working
consumers prefer Loreal skin care product over its hair care products.

37

Question: 6 USAGE FREQUENCY AMONG WORKING RESPONDENTS

(A) Fortnightly
(B) Monthly
(C) Quarterly

Figure 6
22

FORTNIGHTLY
MONTHLY
QUARTERLY
69

Interpretation:
Out of the 29 people using Loreal products,9%of the respondents purchase Loreal products fortnightly,69%of
the respondents purchasethe product on a minthly basis and 22% of them purchase products quarterly. This
indicates that a majority of respondents are frequent users of Loreal products. This also indicates that a majority
or there is easy availability of Loreal products at almost all retail outlets.

38

Question7: USAGE FREQUENCY AMONG NON WORKING RESPONDENTS

(A) Fortnightly
(B) Monthly
(C) Quarterly
(D) Weekly

figure :7
6

33

fortnightly
58

monthly
quarterly
weekly

Interpretation:
Out of the 36 respondents who use Loreal products, only 3%puchase the products fortnightly, about 6%
purchase the products weekly,33% of them purchase the products quarterly and a majority of 58 % of the
customers purchase the products on a monthly basis. The result of this data is very much similar to that of the
working respondents.
This indicates that the buying pattern of customers is more or less the same irrespective or their occupation.

39

Question8: REASONS FOR NOT USING LOREAL PRODUCTS

(A) Price
(B) Not effective
(C) Happy with current brand
(D) Availability
(E) Unawareness

Figure:8
0
3.14

1.4

4.18
price
not effective
happy with current brand
availability
14.64

unawareness

Interpretation:
Out of the 22 respondents who do not use the Loreal products,14 people(64%) are happy with their brand and
have not tried Loreal product yet, rest 4 people (18%) do not find Loreal products effective, the other 3
people(14%) finds the price of the Loreal products as the main reason for not using it. Thus if Loreal needs to
make the customers use their products for once and be able to stand on their expectations.

40

Question 9: HOW DO YOU KNOW ABOUT LOREAL INDIA

(A) TV
(B) Newspaper/Magazines
(C) Word of mouth
(D) Internet

FIGURE 9
7
24
TV
21

74

NEWSPAPER/MAGAZINE
WORD OF MOUTH
INTERNET

INTERPRETATION:
Out of the 100 people surveyed, 77 answered that they use Loreal products. We gathered information through
our survey that how a respondent came to know about Loreal products. 74 respondents answered that they
came to know about Loreal product through television, 21 buy newspaper and magazine, 20 by word of mouth
& 7 through internet. This data suggest that TV is the most popular source of information and awareness
regarding Loreal products.

41

Question 10: PURPOSE OF USING LOREAL PRODUCTS:

(A) Cosmetic use
(B) Medical use

FIGURE 10
3%

COSMETIC USE
MEDICAL USE
97%

INTERPRETATION:
Out of the 100 people surveyed , 77 people use Loreal products. Out of these 77 people only 2 answered that
they use product for medical purpose, while a majority of 75 people answered that they use the product for
cosmetic purpose. Therefore those people who use Loreal products, 97% use them for cosmetic purpose while
very small percentage of 3% uses it for medical purpose. It is very clear from this data that people prefer
Loreal products for cosmetic use only.

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CHAPTER 4
Conclusion &
recommendation

43

FINDINGS
India still insignificant within LOreal
1.

India still contributes less than 1% of LOreals overall global sales of around $25 billion.

2.

Even a sustained growth, at historical rates of close to 30%, presents negligible upside to LOreals
stock.

Premium Nature of LOreal Cosmetics

1. LOreal cosmetics carry a premium image and price tag, which still have limited traction in India.
2. LOreals portfolio in India does not only need customization, as is being targeted through the
upcoming R&D center, but it also needs high volume manufacturing and an extensive distribution
network across the vast landscape.

So What Does LOreals Increased Focus on India Mean?

1. While LOreal setting up an R&D center in India leverages the expertise of the qualified local staff,
it is also an attempt to achieve more cost-effective R&D spending, given the relatively lower cost of
labor and manufacturing in India

CONCLUSIONS AND RECOMMENDATIONS

1. CONCLUSIONS: The project discusses about the concept of advertising and its related factors and a brief summary on
LOreal India.
Advertising means to gain attention of people towards something. It is thus a mass communicating tool.
The advertising objectives can be classified into three categories as informative, persuasive and
reminder advertising.
1. Informative advertising is concerned with introduction of a new product category.
2. Persuasive with changes in the market conditions mainly when the competition increases in the
market.
3. Reminder advertising is concerned with mature products.

44

One has to develop advertising strategies to prevail in the market. Advertising strategy consists of two
major elements: creating advertising messages and selecting advertising media. The first step in creating
effective advertising messages is to plan a message strategy-to to decide what general message will be
communicated to consumers. Message strategy tends to be plain, straight forward outlines of benefits
and positioning points that the advertiser wants to stress.
The LOreal is a big brand in todays century.
It manufactures four kinds of categories like active cosmetics, consumer products, professional products
and luxury products.
It has won many international awards. The CEO of the company is Jean-Paul Agon who has put forward
his best efforts. LOreal purchasing is organized per "Domain" for which each of them has a dedicated
contact network.
Companies need to be very strategic in presenting the product and its features to attract another
segment.
At the same time, companies need to be sensitive about the impact of targeting other segments on the
existing target segment.
LOreal has been very active and upfront in adopting new promotional techniques to market its products.
The company follows a very popular technique to advertise and market its products that is the Viral
Marketing policy.
Viral marketing is a term coined to define the productive ways a marketing message is made available.
LOreal has got the best packaging award also because of its advertising strategies.
LOreal has approached big film stars like Aishwarya Rai, John Abraham and Sonam Kapoor which has
resulted out in more sales and more profits.
But still it should adopt some changes in their strategies according to me. They should also focus on low
class groups prevailing in the society; should put some natural ingredients in their products so as to
avoid side effects, should participate in fashion events also.
On the conclusion part I would like to say LOreals core business is peoples well being and their ambitions go
far beyond financial performance. The Group has confirmed its determination to link economic growth with
strong ethical principles and a real awareness of its responsibilities to the community.

45

2. SUGGESTION
LOreal should more actively participate in fashion events as it will increase the Market presence of the
brand.
LOreal focuses more on Word of mouth publicity and it believes in Viral Marketing, hence it should
focus more on making the consumers use the product for the first time. If a consumer uses the product,
there is a high probability of them using it again.
LOreal should focus more on including natural products in their product portfolio. We have Garnier in
the list which uses natural ingredients; however we can include other brands too. We can still put
Maybelline in the premium color cosmetic segment but we can use the natural ingredients in place.
People today are more concerned about the quality of the product apart from that they are also
concerned about the effects and side effect of the same; hence LOreal should take this into
consideration.
LOreals target customers are middle class and educated people (mostly working and youngsters).
LOreal has already captured most of the market where they can tap their target audience; however
once where they can approach is would be the corporate offices. They can put up a stall of LOreal in
the office premises of different corporate, allowing the employees to check new products and buy the
one they want to.

46

Different age groups being targeted:-

47

BIBLIOGRAPHY

1. Kotler, P., Armstrong, G., Agnihotri, P. Y. & Haq, E. U. (2010) Principles of Marketing
13th edition, Dorling Kindersley (India) Pvt.Ltd, pp. 376-563

2. http://www.loreal.co.in/_hi/_in/html/our-company/L-Oreal-India-at-a-glance.aspx
on 20.07.2012

3. http://www.loreal.co.in/_hi/_in/HTML/our-company/ethics.aspx
4. http://www.slideshare.net/ibzmir/loreal-marketing-strategy
5. http://www.articlesbase.com/advertising-articles/the-stages-of-developing-advertising
strategies-733709.html
6. http://www.loreal.co.in/_hi/_in/index.aspx
7. http://www.loreal.com/_en/_ww/index.aspx
8.

http://www.loreal-finance.com/eng/key-figures

9. GOOGLE
10.WIKIPEDIA
11.WWW.LOREAL INDIA

48

12.Kotler, P., Armstrong, G., Agnihotri, P. Y. & Haq, E. U. (2010) Principles of Marketing
13th edition, Dorling Kindersley (India) Pvt.Ltd, pp. 376-563
13.http://www.loreal.co.in/_hi/_in/html/our-company/L-Oreal-India-at-a-glance.aspx
on 20.07.2012
14.http://www.loreal.co.in/_hi/_in/HTML/our-company/ethics.aspx on 20.7.2012
15.http://www.slideshare.net/ibzmir/loreal-marketing-strategy on 25.07.2012
16.http://www.articlesbase.com/advertising-articles/the-stages-of-developing-advertising
strategies-733709.html on 25.07.2012
17.

http://www.loreal.co.in/_hi/_in/index.aspx on 25.08.2012

18.http://www.loreal.com/_en/_ww/index.aspx on 25.08.2012
19.http://www.loreal-finance.com/eng/key-figures on 25.8.2012
20.http://www.loreal.com/_en/_ww/index.aspx?direct1=00006&direct2=00006/0000
2&direct3=00006/00002/00003&direct4=http://www.lorealfinance.com/v9/us/c
ontenu/communique_finance.aspid_page=724 on 26.08.2012
21.http://www.mbaknol.com/management-case-studies/case-study-lorealspromotional-strategies-in-indian-cosmetics-market-for-garnier/ on 05.09.2012
22.http://inen.strawberrynet.com/makeup/loreal/?gclid=CIuI8fC426UCFUQa6wod_D
9FzQ on 05.09.2012
23.http://www.strategy4u.com/resource_library/strategytips/articles/20030310.13.s
html on 15.09.2012

49

24.http://www.enotes.com/advertising-strategy-reference/advertising-strategy

on

2.10.2012
25.http://ckkcooly.blogspot.in/2010/07/promotion-strategy-example-of.html
On 15.10.2012
26.http://www.trefis.com/stock/lrlcy/articles/59378/l%E2%80%99oreal-sharpens-focuson-india/2011-05-26 on 15.10.2012
27. http://www.thehindubusinessline.com/industry-andeconomy/marketing/article3595101.ece on 15.10.2012
28. http://www.newsvision.in/DetailsNews.aspx?id=1778&&%20Retail
29. http://www.fashionunited.in/news/apparel/loreal-finds-india-worth-it-030520111976

50

ANNEXURE
QUESTIONNAIRE
Please tick () at the appropriate box.
Question 1: WORKING OR NON WORKING RESPONDENTS:
(A) Working
(B) Non working

Question 2: GARNIER USAGE AMOUNG WORKING RESPONDENTS:

(A) Use
(B) Dont use

Question 3: LOREAL USAGE AMONG NON WORKING RESPONDENTS:

(A)Use
(B) Dont use

51

Question 4: PREFERENCE FOR HAIR CARE AMONG WORKING RESPONDENTS:

(A) Skin care
(B) Hair care
(C) Both

Question 5: PREFERENCES OF HAIR CARE PRODUCTS AMONG NO WORKING

RESPONDENTS:
(A)Skin care
(B) Hair care
(C) Both

Question6: USAGE FREQUENCY AMONG WORKING RESPONDENTS:

(A)Fortnightly
(B) Monthly
(C) Quarterly

52

Question7: USAGE FREQUENCY AMONG NON WORKING RESPONDENTS

(A)Fortnightly
(B) Monthly
(C) Quarterly
(D)Weekly

Question 8: REASONS FOR NOT USING LOREAL PRODUCTS:

(A)Price
(B) Not effective
(C) Happy with current brand
(D)Availability
(E) Unawareness

Question 9: HOW DO YOU KNOW ABOUT LOREAL INDIA:

(A)TV
(B) Newspaper/Magazines
(C) Word of mouth
(D)Internet

53

Question 10: PURPOSE OF USING LOREAL PRODUCTS:

(A)Cosmetic use
(B) Medical use