The market chosen is of that of cosmetic products which is a huge market in todays date having contrasting working attitudes and style, producing goods according to the local requirement in accordance to the wants of the customers and consumers. This assignment compares and contrasts the way in which two different companies, L’Oreal and Unilever carry out their international marketing. Initially this assignment revolves around the two mega cosmetic brand industry L’Oreal and Unilever and their marketing tactics and strategies around the globe in various countries.

                                  

L’Oreal a cosmetic giant operating in over 130 countries worldwide proposes a turnover of over € 13.7 billion since 2001 (check financial results of 2009 and report). The company records a consistent growth of over 19.6% and 26% increase in profit in 2001 and 2002 respectively. (Check recent growth and report) The consistent growth of the company and the share in the particular market is caused due to its varied marketing activities in the marketing arena. The company differs itself from other companies in the sphere of product/service design; packaging; brand name/logo; price; advertising; sales promotion; website; distribution channel(s).

The success of Brand L’Oreal lies in the fact that the company succeeded in reaching out to the customers of different countries of the world, across different income ranges and cultural patterns, giving them the appropriate product they are worthy of. The area of expertise of L’Oreal being that it succeeded almost in every country that it entered. The strategies of L’Oreal was varied enough to help it and stop itself from restricting itself in a single country. L’Oreal sold its product on the basis of customer demand and country want rather than keeping the product identical across the globe. It built ample number of brands or mammoth brands entrenched to the restricted culture and which appealed to a variety of segment of the universal market instead of generalising the brand and edible in innumerable culture. L’Oreal went on to being a local product in every international market. The brand extension of L’Oreal also came in the same sector or the same segment of market. L’Oreal believed in growing its expertise in the segment it is conscious of rather than going into a completely new sector of market..

L’Oreal had built a dozen or so mega brands rooted in the local culture and appealing to different segments of the global market. Instead of homogenizing the various brands and making them palatable in myriad cultures, Owen-Jones decided to embody their (the brands’) country of origin, turning what many marketing gurus considered a narrowing factor into a marketing virtue.

As a senior L’Oreal manager put it, “You have to be local and as strong as the best locals but backed by an international image and strategy. We have made a conscious effort to diversify the cultural origins of our brands.”…

Brand Extensions

L’Oreal realized the need for caution in case of brand extensions. The company extended its brands after doing a thorough research. When L’Oreal decided to enter the kids shampoo category in 1998, it debated whether to launch a new brand or go for an extension. The company realized the L’Oreal name, long associated with women’s hair care, would capture instant credibility with moms. But Kids was really a child-oriented product. When L’Oreal first unveiled its L’Oreal Kids shampoo line early 1998, retailers were sceptical. “Retailers say the value isn’t there. We say it is that the child establishes value. We were pretty tenacious.” – mentioned Carol Hamilton, 45, senior VP-marketing for the L’Oreal retail division of Cosmair…

L’Oreal professionals mechanises with L’Oreal professional salons in order to not only promote their product but also to help hairdressers to have a vision, excel and accomplish.

L’Oreal have divided their product range in five different categories to focus its marketing activities exclusively designed for the targeted market audience.

Professional products

Consumer Products

Luxury Products

Cosmetics

Body Shop

The body shop was founded in 1976 in the United Kingdome well known for its strong product base of natural ingredients and having a network of over 2550 stores in 63 countries (is this the present situation?


In India L’Oreal brought the international style by transforming the looks in the form of amenities to its customers. L’Oreal marked its products through hair salons in India. Today L’Oreal owns over 2000 saloons over 36 cities in India.

L’Oreal and Unilever competed on getting positioned in the shelf-space in the United States to be in the eye of the customers.

Dove on the other hand promoted its product by positioning itself the best that is as the number one product and also with the help of dove the seven day challenge, where dove promised healthy hair or money back guarantee.

In the United States Dove bought about the “half-faced” challenge. Dove asked the American customers to use the product on half of their face and feel the difference.

L’Oreal on the other hand promised a reduction in the hair fall or in the healthy hair or a complete money back guarantee. L’Oreal carried out its sales promotion having a wide assortment with varying range of products for premium and the middle class. Though L’Oreal’s prmium product were at low demand, L’Oreal kept on reinforcing them through promoting their premium brand as a look of necessity.