Marketing Communications

240 CHAPTER 7 ADVERTISING

CASE 7:

L’Oréal’s Biotherm and Biotherm Homme: a global brand of skin

care products

The L’Oréal Group

The L’Oréal Group, with headquarters in Clichy, France, was

founded in 1907, and is the world’s foremost company in

cosmetics. In 2011, the group had 68 900 employees in

58 countries and 42 production facilities around the world.

It is present in 130 countries with almost 300 subsidiaries.

In 2011, group turnover was €20.3 billion, €3.3 billion of

which was profit. The competition is heavy and global, with

companies such as Procter & Gamble, , Beiersdorf,

Wella, Estée Lauder and LVMH.

L’Oréal’s vision is that cosmetics are part of the universal

quest for beauty and well-being. As a form of self-expression,

they are personal, part of social life, and they serve a daily

need for self-confidence and contact with others. L’Oréal

claims to put all its expertise and research resources to

work for the well-being of men and women, in all their

diversity, around the world. Consequently, the company’s

focus centres around three important principles:

z Unfailing attention to consumers and understanding

and anticipating their individual needs and aspirations.

z Respect for personal diversity; the company strives to

match personal diversity with the diversity of its products

and brands (age, type of skin, over time, culture, etc.).

z The effectiveness of the products is built upon in-depth

research and a dedication to investing in innovation,

product safety and the highest standards of reliability

and product quality.

With respect to R&D, in 2008 about 3300 employees of

60 nationalities worldwide were working in 30 different

research disciplines; €580 million was invested in R&D,

one-third of which is devoted to advanced research. In 18

research centres and 13 evaluation centres around the

world, each year 5000 formulae are developed and in 2011,

as in preceding years, more than 600 new patents were

registered. L’Oréal has 100 active co-operations with

leading academic and research institutions.

Attention to consumer needs and personal diversity is

reflected in the branding and product range strategy of the

group. The company markets 27 global brands, i.e. brands

with annual sales of over €50 million. They can be divided

into four categories ( Table 7.5 ). Each brand has its own

well-designed brand proposition, and brand equity is con-

tinuously built and supported by means of advertising and

other forms of marketing communications. L’Oréal also

recognises that there is no single model of beauty. Each

culture has unique personal care segments, unique styles

Table 7.5 Four categories of cosmetics

Type of product Consumer products Professional products Luxury products Active cosmetics

Definition Are priced competitively

and distributed through

mass market retailing

channels

Meet the requirements

of hair salons and provide

customers with a wide

range of innovative products

Offer customers products

and premium service in

department stores and

specialty stores

Dermo-cosmetic

products sold in

pharmacies and

specialist retailers

Brands L’Oréal Paris

Garnier

Maybelline NY

Softsheen Carson

CCB Paris

L’Oréal professional

Kérastase

Redken

Matrix

Mizani

Lancôme

Biotherm

Helena

Rubinstein

Kiehl’s

ShuUemura

Giorgio Armani

Ralph Lauren

Cacharel

Viktor & Rolf

Vichy

La Roche – Posay

Innéov

SkinCeuticals

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