Analysis of The Company L'Oreal

Abstract

The goal of this work is to persuade that our presumption, of well –working company in the field of marketing, is good. We used analyses such as SWOT analyses to learn more about the company. The most important source of needed information were public statistics, webpage of the company or of competitors. One of the most important facts of success is that the company is highly oriented in Research & Development, their products can be found in a huge variety of distribution channels etc. Because of a big competition L’Oreal has to continue in their good way - follow the trends, listen to their customers and create a value for them.

Introduction

For this project we chose the L’Oréal Company, because it is attractive for us. We want to find, if our presumption, that this big company is a good example of well-working firm in the field of marketing, is all right.

1. General characterization of the company

The L’Oréal Company belongs to the best cosmetics companies in the World. Nowadays, this number one French cosmetics company is distributed in more than 130 countries and counts 23 international brands. For the science and research this company invests around 600 million euro. L’Oréal employees 67, 500 people worldwide.

1.1. History

The L’Oréal company was established in 1909 by young French chemist and businessman Eugène Schueller. The history of that company has started due to hair dyes that Mr. Schueller has invented and has started to sell that product under the brand Auréole to Paris hairdressers.

In 1912 the company extended its sales to Austria, Holland and Italy. By 1920 L’Oréal products were sold in 17 countries, including United States, Chile, Bolivia, Brazi, Peru and Societ Union. It happened because after the end of the war, for women it started new epoch. They began to work, they had money and they wanted to take more care of their own visage.

In the 30´s Eugène Schueller started to do a creation of promotions and advertising strategies. He brought to the radios sung advertising instead of spoken. He believed in two types of advertising – 1) to excite the interest and publicity and 2) to maximize sales. In his company he started to implicate the idea of the “proportional salaries”, wages that reflected the changes in the company's revenues. This was the real start of employee profit-sharing, which gradually spread throughout the world.

The year 1954 became a key moment in the international growth of L'Oreal. After three years of research in the U.S. market (the largest in the world cosmetics market), L'Oréal decided to cross the Atlantic.

Since 1957 with the new chairman of the board Françoise Dalleho, L’Oréal company has expanded to a lot of countries in the world. In the year 1963 the L’Oréal Group is listed on the Paris Stock Exchange due to the development of the company. In the period from 1964 to 1973, the company made acquisitions of many companies (Lancôme, Garnier, Biotherm, Syntheláblo and Gemey).

In year 1988 the company got a new boss Lindsaymu Owen-Jones. Thanks to this director the company has started to be the world leader in cosmetics companies. Mr. Owen-Jones has got the new design to the company due to worldwide brands and strategical acquisitions.

2. Mission, Vision, Goals

2.1. MISSION

The mission of the L’Oréal company says, that they “believe that everyone aspires to beauty”. They want “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 business of the company.

L’Oréal wishes to give everyone the gift of beauty and make every person’s dream real with quality products suiting their geographical boundaries (the habits etc.) by concerning continuous research and innovation.

We think that the mission is written properly, and when we read it, we can say, that we understand, what is the main business of the company.

2.2. VISION

One of the visions is to reach other markets. To be successful the company is focused on research, on making innovation in cosmetic industry. They are creating the most profitable portfolio of the products as it is possible.

2.3. GOALS

The goal of L’Oréal is to become the first choice of people who wish to feel beautiful. This should be done by continuously offering high quality products, by exploring new opportunities, by formulating organic products, by continuous technological innovations and by valuing the stakeholders.

3. Management and Marketing Philosophy

3.1. Management Philosophy

L'Oréal is a worldwide company. The L'Oréal Group registered office is in Paris and head office is in the Paris suburb of Clichy, Hauts-de-Seine, France. L'Oréal is a listed company, but the founder's daughter Liliane Bettencourt and the Swiss food company Nestlé each control over a quarter of the shares and voting rights.

The company has a corporate governance include: the board of directors, the board`s committees and the managers of corporate offices.

The Board of Directors represents collectively all the shareholders, and is bound by obligation to act in the best interests of the company in all circumstances. The Board reviews every year its composition, organization and the mode of operation. The directors of L'Oréal have a good knowledge of the company and come from different spheres, because they must complement each other with their diverse professional experience and expertise. They are independent in their thinking and have the duty of vigilance.