c

 

 c c

‘
 
Prof. Rajiv Joshi
St. Kabir Institute of Professional Studies
‘

 
Khushbu Patel
Roll no. 31
Term - 3
‘ ‘

‘
‘

Ô
 
  Ô

     

 É P  
     

 É •  

 É ›  
 

 É Ú   

 É a 

     

 É    ! 
    "

 É ÷  ! 
   

 É    

 #  $

$ • ÷    

 % 
%   &

& ' 

÷  (
 

 ))÷    "

 a')
 *

" '+)
 

* #   
 

 '     &

‘
‘

÷ ‘ 
  ‘
‘

 ‘ ‘ ‘‘‘ ‘

Mor the past century, L¶Oreal has pursued its adventure in the beauty industry to cement
its position as the world¶s leading Cosmetics Company. Above and beyond its financial
success, however, L¶Oreal¶s track record reflects an endless quest:

É A quest for innovation, begun a century ago by scientist and inventor Eugene
Schuler, driven by tireless research and buoyed by a steadfast pioneering
spirit;

É A quest for excellence through increasingly safe, imaginative and effective

products;

É A quest for diversity and a range of cultures to meet the needs of men and
women around the globe and make beauty products available to as many
people as possible;

É A quest for purpose, a cornerstone of the L¶Oreal approach, combining

economic growth, ethics, social and environmental responsibility;

É A quest filled with passion, transcending borders in a bid to make the world
more beautiful.

At L¶Oreal, they have made cosmetics the focus of all our energy and know-how for
nearly a century. We are fully committed to putting all our expertise and research
resources to work for the well-being of men and women, in all their diversity, around the
world.
L¶Oreal India Pvt. Ltd. engages in the distribution of L'Oreal SA cosmetics products for
men and women. The company was founded in 1991 and is based in Mumbai, India.
L¶Oreal India Pvt. Ltd. operates as a subsidiary of L'Oreal SA.

‘
   ‘
At L¶ORÉAL, they believe that everyone aspires to beauty. Our mission is 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 our business, and to
the working lives of our employees.

   ‘
Õ '# a 

 ,
Perfection is our goal. We are determined to continue enhancing our brand portfolio with
innovative products and to meet the most demanding standards of quality and product
safety at all times.

Õ ) # )   ,
Our expertise drives our passion for new discoveries and innovation in cosmetics. Each
new achievement - each step forward - is in itself a new beginning.

Õ a  ! ,

nderstanding and valuing each individual is an essential part of our corporate culture.
Our staff members come from many different backgrounds and work together to offer a
full range of products through varied distribution channels. Our goal is to serve the
beauty and well-being of our consumers in all cultures throughout the world.

Õ î
 

,
Just as we are dedicated to enhancing the well-being of our consumers, we also make it
a priority to ensure that each employee has the opportunity to develop his or her
potential through personal and professional growth.

Õ ›   Ú  

Research is as much a part of our business as marketing, sensitivity to consumer needs
is as important as scientific rigor, and know-how and expertise are as essential as
intuition. Building on our unrivalled experience and expertise, fundamental research is a
specific focus of investment that drives creativity and contributes to developing the
cosmetics of tomorrow.


• ‘
‘
É # "*" "&

# ,  
- 


Õ In 1909, young chemist and natural entrepreneur Eugene Schuler sets up the
company that will later become L¶Oreal.

Õ Everything begins with one of the first hair dyes, which he designs, produces and
sells to hairdressers in Paris.

Õ The move forges the first link in the chain that is to become L¶Oreal ³DNA´: using
research and innovation to enhance beauty.

É # " "

›  
      

Õ These are the formative years of ³Le Grand L¶Oreal´.

Õ At the instigation of Chairman Mrançois Dalle, the Group starts to expand

internationally.

Õ Acquisitions of strategic brands mark the beginning of a period of spectacular

growth for the company. Emblematic products come into being.

Õ The company motto is ³Savoir saisir ce qui commence´ (seize new

opportunities).


 É # "$  ***

Ú   (    (   

Õ These twelve years are marked by a great period of growth for L¶Oreal, mainly
driven by the significant investments made by the group in the field of research.

Õ Alongside these efforts are strategic product launches that not only make history,
but also succeed in strengthening the Group¶s brand image.

Õ In 1988, Mrançois Dale¶s successor, the research and development pioneer

Charles Zviak, hands over the reins of the company to Lindsay Owen-Jones, a
truly outstanding director.

Õ nder his management, the Group would completely change in scope to become
the world leader in cosmetics through the worldwide presence of its brands and
strategic acquisitions.

É #  **   

   (      



Õ There is no single type of beauty; it is a multiple-faceted quality framed by

different ethnic origins, aspirations, and expectations that reflect the world¶s
intrinsic diversity.

Õ With a portfolio of powerful, international brands, L¶Oreal enters the 21st century
by embracing diversity in its global growth agenda.

Õ Headed since 2006 by Chairman Lindsay Owen-Jones, and Chief Executive

Officer Jean-Paul Agony, the Group continues to make new acquisitions to cover
the world¶s varied cosmetic needs, and to undertake new socially responsible
initiatives in the interests of sustainable development for all.


› ‘‘ ‘‘
‘
The company began doing business in India in the early nineties through a distributor
and later established L¶Oreal India, a wholly owned subsidiary of the L¶Oreal Group.
L¶Oreal - the second ranked international cosmetics company in India - claims that
revenues in the country increased five-fold over the past five years.
The new factory in Pune is the latest step in the group's rapid development in the
subcontinent. The high-tech plant is to manufacture hair care, hair colour and skin care
products to meet rapid increases in demand. The Pune site is one of the first within the
company to implement L¶Oreal¶s newest GHP or Good Hygiene Practices.
×These new requirements have a profound impact on the way buildings are designed,
the way production units are organized and on the installation layout. GHP zones are
protected by airlocks to allow for a controlled atmosphere, and processing vessels are
isolated in dedicated areas physically separated from the rest of the facility," said a
spokesperson for L¶Oreal.

L¶Oreal operates three divisions in India, including,

É The Consumer Products Division - L'Oréal Paris,, Maybelline New York and
Garnier

É The Professional Products Division, which manages the salon business, and

É The Active Cosmetics Division with the Vichy brand of dermo-cosmetics.

When L'Oreal's Professional Products Division entered India in 1997, there wasn't a
sniff of structure in the hairdressing industry. Organised education was absent, training
considered redundant and hairdressers content with dubious domestic brands and
prohibitively expensive foreign ones.
L'Oreal had the vision to realise all that would change and invested heavily in
hairdressing education and training. Today, the hair care industry is pegged at Rs 200
crore (Rs 2 billion), growing in double digits, and L'Oreal Professional Products --
Professionnel and Kerastase -- are market leaders.
L'Oreal Professional Products prides itself on a product they believe is technologically
unmatched. "3.5 per cent of our sales are pumped back into research & development.
"They skim the top 100 cities in India and have the largest salon base in the country, of
which 20 per cent is exclusive to them, contributing to 40 per cent of their revenue." SA
"Their biggest cost is the education of their trade. They have over 40 trainers; it's an
entire machine that needs constant oiling."
But competitors are eating into the same strategy. Both Schwarzkopf, at the number two
position in the industry, and Wella have launched technical training centers.
Schwarzkopf even launched a by-invitation-only hairdressers club and flew 150
members to Goa for an inaugural meeting.

›  

 ,
L¶Oreal, world leader in cosmetics, has a modern and efficient growth model that is
always looking to the future.

Õ 100       

Õ 5-      : hair care, hair color, skincare, make-up & fragrances

Õ 23
(
(

Õ Products distributed in *  

Õ ¼.(

  
 
in 2008

Õ ¼

 in R&D investments

Õ 628 
 in 2008

Õ 67,662 
  


Õ 4.6(

 /manufactured in 2008.

‘
‘‘‘ ‘

      

High technology products at competitive prices distributed through mass-market

retailing channels.
É L¶Oreal Paris
É Maybelline
É Garnier

    
  

Portfolio of brands that meet the requirements of hair salons and provide customers
with a wide range of innovative products.
É L¶Oreal professional
É Kerastase
É Matrix


 ›   

Prestigious brands which offer customers products and premium service in
department stores, specialty stores and travel retail outlets.
É Lancome
É Ralph lauren
É Biotherm
É Giorgo Armani
É Diesel

$
 )   

Dermo-cosmetic products sold in pharmacies and specialist retailers and

supported by advice from pharmacists and dermatologists.

É Vichy
É La roche posay
a ‘
) › ÷
)›.   (
            (  
        

           
  
0    .     
 
   
      

         

   
(  .   -
    
 
+      -


)Ú  ,

Their strategy for leadership is based on continuous investment in rigorous scientific
research and development. This enables Their brands to deliver products which are
innovative, highly effective, practical and pleasant to use, and which are manufactured
to the most demanding standards of quality and safety. they aim for excellence, and
constantly challenge ourselves and our methods. We place great value on honesty and
clarity: Their consumer advertising is based on proven performance and scientific data.
They are committed to building strong and lasting relationships with our customers and
their suppliers, founded on trust and mutual benefit. They do business with integrity:
They respect the laws of the countries in which we operate and adhere to good
corporate governance practices. They maintain high standards in accounting and
reporting, and support the fight against corruption. They deliver long-term, sustained
shareholder value by protecting and making the most effective use of company assets.

)a
 ,

They aim to make L¶ORÉAL a great place in which to work. We know that our
employees are our greatest assets. They are entitled to a safe and healthy working
environment: one in which personal talent and merit are recognized, diversity is valued,
privacy is respected, and the balance between professional and personal life is taken
into account. They believe in offering our employees a stimulating environment, exciting
personal opportunities and a chance to make a difference. They encourage an
atmosphere of openness, courage, generosity and respect, so that all our employees
feel free to come forward with their questions, ideas and concerns.

)÷  (
   0 :

They play our part in creating a world of beauty and fairness. They are mindful of our
impact on the natural environment, including biodiversity, and constantly seek to reduce
it: They are determined to avoid compromising tomorrow for the sake of today. We
make a positive contribution to the countries and communities in which we are present,
and respect local cultures and sensitivities. They are committed to the respect of human
rights. They want to help end the exploitation of children in the workplace and the use of
forced labor. They want an end to animal testing in our industry, and we contribute to
the development and acceptance of alternative methods. They actively seek out and
favor business partners who share their values and our ethical commitments.
 ‘
  ‘

  ‘ ‘‘

' a
 
L¶Oreal takes safety very seriously and, well before it was required by law, we had put in
place a safety evaluation team to ensure the safety of our products for both
professionals and consumers.
Our International Safety Evaluation Division uses a multi-disciplinary scientific approach
to evaluate the safety of our products, ensuring that our commitment to product safety is
upheld at every stage in the product¶s life.
This safety assurance procedure includes an assessment based on the latest medical
and scientific research, rigorous safety evaluations of ingredients as well as finished
products, examination of the effects of cumulative product use and ongoing safety
monitoring once a product is on the market.
Product safety studies are designed and monitored and their results interpreted and
evaluated by scientists who are specially trained and experienced in safety evaluations.

' ,÷   )

(
'       
This is the first stage in a new product¶s life when its composition is defined by their
scientists and each formula is registered in a dossier. If it is a plant extract the scientists
will examine its botanical origin. Each ingredient of the product is then evaluated. Once
each ingredient, natural or synthetic, has been defined chemically and analytically, as
the case may be, all available use and safety information on the ingredient is
investigated.
At this preliminary stage their scientists also take into account the anticipated consumer
use of the finished product.
The final step in this first stage is to check the regulatory considerations for the market
where the product will be launched and ensure that by including these ingredients we
are complying with the local law regulating the use of them. The use of numerous
cosmetic ingredients is strictly controlled in many countries of the world today.

'  ,'          #   

Mollowing this initial analysis, they consider in detail how a new ingredient will be used
when incorporated into a finished product. To do this, they look at which part of the
body this finished product will be applied. They analyze whether it will be only used on
the face, or under the arms, or around the eyes. They check to see whether there is a
possibility that the ingredient may be ingested (toothpaste or lipstick for example). They
also establish whether one or more ingredients could be inhaled (aerosol, for example).
In tandem with this evaluation, they look at how much of the skin surface will come into
contact with the ingredient in question. Is the ingredient going to be used in a cream
that is specific for the hands? Or will it be in a body lotion that may be used all over the
body?
Then they analyze how often the ingredient will be used in the context of the product.
Will it be something that is applied every day? Or once a month? Or even several times
a day?
They also examine how much of the product and, therefore ingredient, is used each
time. Mor this we have data gathered from across Western Europe which allows us to
know in detail how much of our cream, lipstick or mascara is used each day by our
customers.
Minally, they anticipate all the possible mis-uses of a product (for instance, a shampoo,
used to wash the whole body; a lipstick, used on the cheeks to add color) to ensure that
the ingredient is safe for use beyond the original intended use of the product.

' ,) '        


Once they have collected all the necessary information about the ingredients and the
way the cosmetic product is likely to be used, they can carry out a analysis to establish
a concentration at which a given ingredient may be used safely in these different
cosmetic products.
This analysis is a calculation that establishes the so called ³%  ' ´. At
L¶Oréal this margin is typically a use level of the ingredient that is 100 times below what
is known to be safe under experimental conditions and allows us to extrapolate from
experimental conditions to real life. As a result of this calculation, different limits are
imposed on the use of the same ingredients in different product types, e.g. higher
concentration may be allowed in shampoo, because it¶s rinsed off skin after use and a
much lower concentration will be allowed in a face cream.
This Margin of Safety procedure is described, among others, in the European document
called ³Notes of Guidance for the testing of cosmetic ingredients and their safety
evaluation´, 6th revision (2006), written by the Scientific Committee on Consumer
Products and issued by the European Commission¶s Health and Consumer Protection
Directorate General.
On the basis of the information gathered in '  .   .      
  the use of each of the ingredients at a given concentration in a given finished
product. This information forms part of the Regulatory Dossier for each ingredient.
' $,'    #   

Once the ingredient evaluation stage is completed and proved satisfactory, the
European Cosmetics Directive does not require L¶Oréal to go any further with its testing,
but at L¶Oréal we often submit the new product to further in-vitro tests and clinical tests
with human volunteers
The first stage of testing is done using in vitro studies in which a new product is often
compared to another, similar and well known product.
Clinical testing is carried out in human subjects when we know that the product is safe
as we want to establish the tolerance of the product in potential customers. This is a
more complex procedure as we look at objective signs as well as subjective feelings
about the product.

' ,' î

   #   

Once the product has passed through steps 1-4 then one of our safety assessors will
give his or her approval and will sign a safety attestation. This attestation forms is
included in the Regulatory Product Information Mile, supplied for each product.

' &,  ›  1%- '  

 
L¶Oréal continues to evaluate consumer use and potential sensitivities to our products
sold around the world on an ongoing basis. A µcosmetovigilance¶ network was set up
twenty-five years ago to provide this monitoring function. The network collects,
validates and analyses, through the application of rigorous and recognized
methodology, any undesirable events which may be related to the use of a product.
Through their worldwide network of Consumer Services departments, consumers can
advise us of a tolerance issue which is immediately communicated to our
µcosmetovigilance¶ department who then examines the file, the formula and the
ingredients. It then contacts the consumer and/or his or her doctor, if necessary, to help
resolve the issue, carrying out additional investigation, whenever required, before
reporting back to L¶Oréal¶s management on any potential implication involving our
product.
÷‘
‘ ‘
Everything at L¶Oréal begins with science and knowledge. All of our products are
based-on intensive scientific research. We employ 3,000 scientists who work in state-of-
the-art research centres around the world.
In addition to developing new formulas and ingredients, our scientists also study the
structure and function of the skin and hair, discover new molecules, investigate best
combinations of personal care products and how to maximize product performance and
safety.
The development of new products involves scientists from a variety of disciplines, such
as chemistry and biochemistry, biology, microbiology, toxicology, packaging
engineering, dermatology and quality assurance.
At L¶Oréal, we have a long-standing policy of allocating 1/3 of the company¶s Research
and Development resources to fundamental research projects, which are targeted at
progressing knowledge in three main disciplines: skin, hair and color.
A decision, made almost twenty-five years ago, to invest in biotechnology and the life
sciences in particular, has given us the means to better understand skin and hair, to
reconstruct the skin, and to pave the way to develop products that fight ageing of the
skin, hair and skin pigmentation disorders.
Research into new cosmetic ingredients and formulations can take many years and
often the research conducted by our scientists leads to breakthroughs with a wider
contribution to scientific knowledge. Mor example, we are now able to grow hair in test
tubes in our laboratories, enabling us to carry out numerous tests on new shampoo and
conditioner ingredients.
Õ 3,268 employees of 60 different nationalities working in 30 different disciplines.

Õ ¼ 581 million dedicated to cosmetic and dermatological research in 2008

Õ 18 research centers across the world and 13 evaluation centers

Õ 1/3 of the R&D budget devoted to Advanced Re5 000 formulas developed each
year


Õ 628 patents filed in 2008100 active cooperation agreements with leading
academic and research institute

  ‘÷  ‘
In addition to the rigorous safety testing that L¶Oréal conducts for each finished product
before making it available for sale, they are also held accountable to governmental
requirements for safety in the 130 countries where they market our products.

Whether governed by the European Cosmetic Directive, the S Mood and Drug and
Cosmetic Act or any other local laws that regulate the sale of cosmetic products, L¶Oréal
meets or exceeds the legal obligation for product safety in each country where their
products can be purchased.


  ‘

Õ 42 factories around the world

Õ 4,6 billion units manufactured in 2008

Õ 95% of factories are ISO 14001-certified

Õ 95% of L¶Oreal¶s industrial sites audited with standard SA 8000








à ‘  ‘
 ** 
 

 Õ Sales: ¼ 17.5 billion in 2008

Õ Operating profit: ¼ 2.7 billion

Õ Net earnings per share (1): ¼ 3.4

Õ Dividend (2): ¼ 1.44


(1) Diluted net earnings per share based on net profit excluding non-recurrent items
after minority interest.

(2) Dividend to be proposed to the Annual General Meeting of Shareholders on April

16th 2009.

   ‘ ‘


 ** **

(% of sales) operating 16.6% 15.5%

Net profit excluding non-recurrent items after minority 13.9% 15.2%

interest / opening shareholders¶¶ equity (% of
shareholders µequity)

Net gearing (% of shareholders µequity) 17.4% 31.3%

Cash flow / investment 3.5x 3.7x

d ‘• ‘÷‘
These are the details about the L¶Oreal Company in all over world.

Õ 67,662 employees in 58 countries

Õ 84% of the young graduates hired in 2008 were former L¶Oreal interns

Õ 5 Management Development Centers

Õ L¶Oreal is the ideal employer for business students in Europe in 2008

(Tendency Europe survey, Managers edition)

Õ L¶Oreal employees worldwide have been involved in social commitment actions

for over a decade.
‘
‘÷  ‘
The Group has established multiple partnerships in Mrance, in the SA, Latin America
and in South Africa with several niversities, associations and recruitment agencies
involved in diversity. These partnerships enable us to gain access to various candidates
of different backgrounds. The Group also takes part in varied recruitment forums
dedicated to candidates from minority groups or dedicated to women.


 ‘
Since the end of 2006, a specific diversity training program is being rolled-out to 8000
managers in Europe (over 32 countries). This training aims to involve, give responsibility
to and help managers in implementing the Group¶s diversity policy. This training at
European level joins the training that has been underway in the SA for two years
where more than 2000 have already been trained. 
à ‘ ‘  ‘

÷% 
2' 
 

Manufacturing our products requires a wide range of raw materials that are
blended in our formulas. L¶Oreal directly partners with suppliers that specialize in
various technical groups, such as:

É Polymers
É Mats
É Natural products
É Perfumes
É Sunscreens
É Vitamins

-2' 
 

Mor L¶Oreal, it is essential to offer our clients innovative, environmentally friendly
Packaging that promote our products. To do so, we collaborate with a broad range
of suppliers involved in various technological fields, such as:

É Plastic bottles and jars

É Glass bottles and jars
É Molded parts
É Plastic tubes
É Aluminum tubes
É Spray cans
É Distribution systems
É Labels

 3  2 
 

In order to promote their products and make them stand out in sales outlets, as well as
to attract their consumer and clients,loreal has developed display cases, promotional
objects and accessories.The purchasers work as partners with a broad range of
specialized suppliers that are capable of offering.

É Permanent POS
É Promotional POS
É Printing
É Promotional items etcú

a  2 
 

With numerous production plants worldwide, L¶Oreal collaborates with a board
community of industrial equipment suppliers divided into three categories:

É %     : production skids, weighing equipment, washing
equipment, etc.

É - : fillers, labelers, distributors, multi pack machines etc.

É /
 : compressors, boilers, cooling systems, paletting, fire safety, etc.
  2' 
 

The indirect purchases team, which covers a broad range of activities within L¶Oreal,
has a direct relationship with numerous suppliers. The Group has therefore split its
general expense sheet into various purchasing categories, such as

É Intellectual services
É Travel, relocation
É Meetings/events
É Building fees
É Temporary employment
É IT and Telecommunications
É Human resources
É Office and technical supplies
É Energy & fluids
É Maintenance & spare parts
É Personnel-related services
É Express transport
É Insurance
É Documentation

   2' 
 

Alongside the internal production of these products, the Group collaborates with a
broad range of subcontractor companies, such as:

É Packaging or finishing finished products

É Manufacturing specific finished products (soaps, pencils, cloths, etc.)

É Logistics
 ’ ‘ ‘÷   ‘
‘
Õ › ‘ 
‘   ‘ ‘ ‘ ! ‘ " ‘ ‘   ‘
 ‘‘

In its continuous efforts to encourage women to pursue careers in science

L¶Oreal India announced, from the seven consecutive years, the Mor Young
Women in Science Scholarships.

L¶Oreal India will award scholarships to  deserving girl students from the
state of Maharashtra. Each scholarship consists of an amount of ÷


.
granted over a period of four years of study in a scientific field in a recognized
college or university in India.

The L¶Oreal India Scholarships Mor Young Women in Science Programme is an

extension of the international L¶OREAL NESCO MOR WOMEN IN SCIENCE
partnership. The L¶Oreal India for Young Women in Science Scholarships program with
the support of the Indian National Commission for Cooperation with NESCO has
helped young women, passionate about science, to achieve their dreams and
aspirations of pursuing a career in science. By providing the financial assistance to
pursue scientific education.

‘
‘

Õ › ‘ 
‘ ‘÷

‘‘ ‘‘ ‘‘ ‘

 ‘

Beautiful Beginning is an NGO specialized in free vocational training and Education in

Beauty to the underprivileged. It is an initiative providing training in beauty services to
under privileged girls. It will provide beauty service training to 200 poor urban girls
(school drop-outs) each year of Mumbai and Pune. As a result these girls either become
employable in existing beauty salons or are able to set up their own small beauty
salons. They become economically secure and get more freedom to balance their family
duties.


ñ ‘#
‘
‘÷   

!‘
÷
‘
É L¶Oreal named one of the ³world¶s most ethical companies´ for 2010


!‘

 ‘
É Two L'Oréal brands Win marie claire prix d'excellence 2009 beauty awards.
É L¶Oreal ranked among the world¶s 100 most sustainable corporations by
corporate knights et innovate.
É Admiral presents L¶Oreal with corporate-philanthropy "Oscar"

!‘

 ‘
É L¶Oreal receives accolade for the quality and transparency of its financial
communication.
É L¶Oreal receives accolade for the quality and transparency of its financial
communication.



 ‘aa›‘#  ‘
PESTEL Analysis is a popular method of examining the many different
external factors affecting an organization.

  ‘

The current and potential influences from political pressures.

É Taxation policy
É Privatization Deregulation
É International trade regulations
É General initiatives
É Government stability
É International stability

a  ‘

The local, national and world economy impact.

É Interest rates
É Money supply
É Credit control
É Minancial markets
É Inflation
É Competitors pricing
É Globalization

Indian cosmetic industries is least affected when compare to other developed economy
and Indian cosmetic industry developed by 7.5%, which attributed to our policy frame
work with respect to capital and liquidity. Maybelline have built strong links with trade
based on mutuality in support of Indian government. ECONOMICAL Indian economy
registered a growth of more than 7.5 % even in times of global recession and is
maintaining robust growth rate as compare to other countries which are developed and
developing, so Indian cosmetic industry is directly related growth of economy, which is
highly support cosmetic industry.






  ‘

The ways in which changes in society affect us.

É Mobility
É Income distribution
É Population demographics
É Attitude to work and leisure
É Standard of education and skills
É Working conditions

Socially LOREAL is still considered as a foreign brand and the people¶s perception
Towards LOREAL is that of an imported brand. This gives the brand the ability to cash
in the Indian peoples strong desire of using a imported brand, but this deprives the
brand of the brand loyalty that the Indian brands such as ›- and ÷ 
.They are
strong in organizing social and promotion events like fashion shows, which build huge
reputation among the people.

‘
  ‘

How new and emerging technology affects our business.

É IT Development
É New Materials and processes
É Government technology funding
É Speed of technology transfer
É Software upgrades

Technology advancement changes the face of traditional Indian cosmetic market. It

is giving faster and secured service, strong consumer understanding and Technology of
company has been delivered world class product. Company also Introducing new
innovating technology due to advancement in technology, Hence technologies continue
to evolve and it will meet consumer expectations and habitats.



a    ‘
The local, national and world environmental issues.

É Pollution problems
É Planning permissions
É Waste disposal
É Noise controls
É Environmental pressure groups

LOREAL India has till now not faced any major environmental issues in India, but lately
they has been accused by PETA for using animals for testing its products. LOREAL
silenced these critics by opening its testing facility to critics and proving that they do not
use animals for testing and no cruelty is done against animals in its testing facility.

Due to these environmental issues LOREAL has been lately focused in launching more
and more or environmental friendly products in its portfolio. But, one of the main
problems, with these external factors, is that we have little or no control over them and
can change the position of the company in a matter of time.

Hence, PESTLE Analysis can not consider wholly as a parameter for strategy planning.
It can be however used as a parameter to determine a company¶s current situation and
used for short term strategy planning.

›‘

How local, national and world legislation affects us.

É Employment law
É Trade and product restrictions
É Health and safety regulations
É E and international laws
É Monopolies commission

LOREAL works well within the legal framework of India. The factories it
has in Pune and Bangalore are build following all legal formalities. Maybelline
has been under criticism in international market for the false claims and the
Problems of chemicals used in its products .But there have been no such major
problems in India.

 ‘" ‘#  
 ‘
 É It has an extensive, multiple, cleverly selected distribution Channels

É ·The strong nique Selling Point on specialty stores

É Main focus on female beauty and experience

É It has wide and large range of products

É The product¶s components are made of very high quality

É It is a brand owned by L¶Oreal

É ·It is a global brand

É They are able to be global and to act local; market leader

É Suit Research & Development to different target groups

· Effective distribution system

"$ ‘

É It is introduced just lately in the Indian market so it has a weak

Image in comparison to many competitors.

É A decentralized organizational structure that can make control Difficult.

É It is difficult to operate in the mass market like India.

É Profit margins are slightly below some of their smaller rivals.

É A weaker brand name awareness as compared to other renowned

and well established brands.



  ‘

É Existence of some gaps and potential in the market which can be
explored and made use of.
 É Technological advancements can add a great acceleration to the
quality of the brand

É Product line can be extended to procure more market share

É Mocus on innovation:- Enhancing competitiveness

É People attach more & more importance to quality and fixed/

global brands.

É Target groups with growth potential (Men & ageing population of

India).


‘

É Success: If a product under a brand becomes popular then it
leads to imitation and reactive attack by competitors.

É Mailure : If in case a product is a failure , then it causes a negative

impact on the brand name.

É Selective markets: bigger market shares.

É It could perhaps distract the company of its core business.

É Economic crisis and its impact on consumer spending patterns

can hurt the company
÷
‘‘ ‘
‘
É The company plans to open 110 more Body Shop outlets across the globe next
year. The share of the Indian market to L¶Oreal¶s turnover of €15.8 billion is
small, but is growing. With other emerging economies, India's contribution to the
growth in the global cosmetics market amounts to 60 per cent.

É The company sees an addition of 70 million new consumers due to growth in per
capita income in the world's population. L¶Oreal has termed this potential as a big
opportunity for the company.

É The beauty and wellness sector in India is on the brink of a boom, according to
research agency AC Nielsen.
÷÷ ‘‘‘   ‘
É http://www.wikipedia.com/

É http://lorealindia.com/

É http://suppliers.jimtrade.com/

É http://www.cosmeticsdesign.com/

É http://investing.businessweek.com/





‘