L’Oréal

Number one for many decades in the highly competitive cosmetic industry, L’Oréal which in a way manages to be everywhere and that everybody knows, is able to keep in the shadow the ingredients of its success.
How this small familial French company managed to attain this leadership? What are the key elements of its strategy? We will discover that thanks to what some called their “Ninja mentality”, very focused, very strategic, no wasted efforts, and a to strong and unique managerial and marketing capabilities combined to a dedication to innovation, the glamorous company is likely to keep being envied.

COmpany Profile
L'Oréal's story starts in 1909 with the production of the first synthetic hair dyes by the French chemist Eugène Schueller. But the company soon expanded its product range and operations to many other countries to finally become a France-based international cosmetics giant operating in 130 countries with more than 23 brands.

We will try to get and understanding of the strategy of L’Oréal based on the 4 elements that composes it, using its mission and vision as a good starting point.

MISSION : « To make beauty universal »

VISION : L’Oréal believes in a complete overturn of the cosmetic market towards the emerging countries in the following years.

GOAL : L’Oréal is willing to double its number of customers within the next 10 years. (Cf. Official statement by Jean Paul Agon in February 2010)

SCOPE : To accomplish such a long-term goal it will strive « to offer populations all over the world products attuned to their needs, their cultures and their aspirations »
Indeed L’Oréal comprises three business segments:

Cosmetics segment (93.3% of the total revenues in 2008) it includes :
Professional products : Hair care products to hairdressers, using or selling these products in their salons. It comprises four brands: L'Oreal Professionnel, Kerastase, Redken, Matrix and Mizani
Consumer products : sold