L'oral's Sales Structure Essay

4102 words - 17 pages

I.INTRODUCTIONIn 1907 Eugene Shueller a young French chemist developed an innovative hair-color formula. He called this new perfectly safe hair "Aureole". With that the history of L'Oreal began. Eugene Shueller formulated and manufactured his own products which he then sold to Parisian hairdressers. Before long, Eugene Schueller was exporting his hair-coloring products to other countries. As early as 1912, L'Oreal products could be found in Holland, Austria and Italy. A few years later and up to now L'Oreal group is present worldwide through its subsidiaries and agents. L'Oreal group now markets over 500 brands and more than 2000 products in all sectors of the beauty business. They are found ...view middle of the document...

The Division's star properties, L'Oreal Paris and Maybelline, are two of America's most popular brand names. That is one reason L'Oreal USA holds the top spot in the American beauty market. We make L'Oreal style and quality accessible to the broadest possible range of consumer needs and tastes.3.Prestige productsL'Oreal's International prestige brands are managed by the Luxury Products Division. Each brand owns a unique identity and distinct market positioning; all are selectively distributed through department and specialty stores. Luxury Products is a showcase for L'Oreal USA's premium skincare and make-up brands. Three major factors drive the Division's growth:major launches of innovative products for the discerning customersuccessful initiatives in new and existing fragrancesStrong, focused efforts to gain new market share.4.Dermatological sectorL'Oreal USA's involvement in the dermatological sector reflects the company's ambition to be present in every skincare category and distribution channel. Complementary to the rest of the brands, La Roche-Posay is the only prescriptive skincare product line L'Oreal USA currently offers.La Roche-Posay products are dispensed by physicians only. They are an adjunctive therapy to the treatment of pathologies or a complement in aesthetic and reconstructive procedures.B.Strengths and Weaknesses of Competition.The hair caring market is broadly divided into two segments the customer and the professional .L'Oreal company is recognized as the worldwide leader in the production of hair cosmetics. It is estimated to have the 60% of Greek market. Two other companies are the major competitors of L'Oreal in the professional market: Wella which has the 15% and Swarchopht-Rilken which has the 12%.Then other companies follow with smaller percentages such as Clarite, Goldwell and Cramer.Strengths and weaknesses of L'Oreal and its competitors are mentioned in the following table.STRENGTHSWEAKNESSESWella is the leader in the red hair coloring. They are more long lasting than L'Oreal'sL'Oreal's colorings have cosmetic ingredients for better qualityWella Clarite Rilken give bigger discountsCompetitors don't provide their customers technical support through seminars very oftenCompetitive companies have comparative lower prices and attract many hair salonsDon't give legal supportThese companies give credits to their customers after 60 daysL'Oreal works with the best professional hair stylists that introduce fashionIII.INFORMATION ABOUT THE COMPANYA.L'Oreal's Mission and ObjectivesL'Oreal's mission is not only to produce products but also to promote ideas. L'Oreal's purpose is to maintain its leading role in the professional hair styling market .L'Oreal also wants to satisfy its customer needs by providing technical support, advising and problem solving to all its customers in order to develop long-term relationships.The main goal of L'Oreal is to convey the allure of different cultures through its many products whether it is...

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