MARKETING PLAN

ON
 TABLE OF CONTENT

INTRODUCTION..................................................................................................................... 5
PRODUCT STRATEGY .......................................................................................................... 7
STP ANALYSIS ...................................................................................................................... 10
SWOT ANALYSIS ................................................................................................................. 11
PLACE STRATEGY ............................................................................................................... 12
DISTRIBUTION CHANNEL............................................................................................... 13
PRICE STRATEGY ................................................................................................................ 14
PROMOTION STRATEGY .................................................................................................. 16
RECOMMENDATION .......................................................................................................... 21
EXHIBITS ............................................................................................................................... 22
Exhibit 1 ................................................................................................................................... 22
Exhibit 2 ................................................................................................................................... 22
Exhibit 3 ................................................................................................................................... 23
Exhibit 4 ................................................................................................................................... 23
Exhibit 5 ................................................................................................................................... 24
REFERENCES ........................................................................................................................ 25
 INTRODUCTION

Loreal is a world’s largest personal care company headquartered in Clichy, France with a
registered office in Paris. L’Oréal was founded in the year 1909; 110 years Ago by Eugene
Schueller, a French chemist who developed an innovative hair color formula. It got its start
from the hair color business but soon it developed activities in the field of cosmetics,
concentrating on skin care, sun protection, make up, perfumes and hair care. L’Oreal main
branches are Cosmetics, The Body Shop and Dermatology. L'Oreal is active in the
dermatological and pharmaceutical fields, however Cosmetics is the key revenue generator
(See Exhibit 1). It is also the top nanotechnology patent-holder in the United States. L’Oreal
famous advertising slogan is "Because I’m worth it". It has recently been replaced by "Because
you're worth it". Its portfolio of brands includes the cosmetics range of L'Oreal Paris and
Maybelline NY, shampoo range Garnier, luxury products such as Lancome and active
cosmetics such as Vichy.

L’Oreal mission is “Beauty for All” by offering all women and men worldwide the best of
cosmetics in terms of quality, efficacy and safety to satisfy all their beauty needs and desires,
in their infinite diversity.

L’Oréal has chosen a unique strategy: “Universalisation”. It means globalisation that

captures, understands and respects differences. Differences in desires, needs and traditions.
To offer tailor-made beauty, and meet the aspirations of consumers in every part of the world.
L’Oréal is driven by this vision of the world.

India’s contribution to the growth of the global cosmetics market is about 60 percent. The
beauty and the wellness sector in India are on a boom. L’Oreal started its operations in India
thirteen years ago. The share of the Indian market to L'Oreal's turnover of 15.8 billion is small
but is growing. It operates in India through its wholly owned subsidiary, L’Oreal India has four
divisions — consumer products, professional products, active cosmetics and luxury products.
The biggest contributor to its revenue in India is the consumer products division led by its
strongest brand in terms of sales - Garnier.

L’Oreal India has recently setup its own manufacturing plant in Pune. It imports most of its
products from its facilities abroad and manufactures the rest in Pune. The Indian subsidiary
headed by Chief Operating Officer Dinesh Dayal, who has been with the company for 20 years,
is one of the key officials responsible for the formation and operations of L'Oreal India. The
operations in India are conducted through a judicial mix of global and local methods of
advertising to appeal to the Indian consumers.
L’Oreal India has discovered over the years, the behavior of the Indian consumers and has
realized that the Indian consumer is not as price conscious as is portrayed. The brand is more
expensive than the average FMCG, but offers a true value for money. The company’s growth
in India can be attributed to its innovation of new products, supply chain management,
systems and structure. Being the world’s second largest cosmetics major, L’Oreal is planning
to foray into the Rs 1,000-crore Indian herbal and ayurvedic cosmetics industry. After
identifying its targets, L’Oreal India is in advanced talks with Biotique and VLCC to acquire
herbal/ayurvedic cosmetics brands. The group is taking the acquisition route to enter this
niche sector. L’Oreal has thus identified India as one of its top five growing businesses globally.
L'Oreal's research facilities in France, the USA, and Japan bring together more than 3,000
scientists and research staff. Their discoveries are published in leading scientific journals.
L’Oreal has presence in 150 countries. There are 36 brands under its umbrella. As on 2018,
505 patents are registered, clocked sales of 27 billion euros and had an operating profit of 4.92
billion euros.
 PRODUCT STRATEGY

L’Oreal operates in India through four main divisions: consumer products, professional
products, active cosmetics and luxury products. The biggest contributor to its revenue in India
is the consumer products division led by its strongest brand in terms of sales —Garnier. Refer
Exhibit 3

L'Oreal

Consumer Professional Luxury Active

Products Products Products Cosmetics

Consumer Products Division

With 50 products sold every second worldwide, L'Oréal

Paris offers from all continents male and female beauty
products of all types (makeup, skin care, hair care,
styling, hair color and men), from the excellence of its
Research Laboratories. The worldwide success of
legendary franchises such as Color Riche lipstick,
Revitalift skin care, Elnett hairspray, Elsève hair care, Preference hair color or Men Expert
Hydra Energetic skin care for men, reflect the brand’s unique expertise from the greatest
beauty experts. Including Christophe Robin for hair color, Stéphane Lancien for hair care and
styling and Val Garland for make-up.

Second largest brand of the L’Oréal Group, Garnier is

an international haircare and skincare brand with sub-
brands in four categories and seven areas of expertise –
among which Ultra DOUX,Fructis, SkinActive, Ambre
Solaire, Nutrisse or Olia. With products formulated to
meet the needs of every man and woman, everywhere in
the world, we offer innovative, affordable care solutions
at the best prices.

Professional Products

Kérastase created with hairdressers based on their

expertise and experience with clients, a unique hair
diagnosis in order to understand each women’s individual
hair needs. There is one belief: there is not one single
interpretation of beauty but an infinity. The brand enhance
all types of beauty, cultures, visions… and of course, all
types of hair. Part of a wider influential community, Emily Ratajkowski embodies Kérastase’s
vision of beauty; with her unapologetic and femininity.

Matrix is one of the leading American professional brand

worldwide. Matrix was founded in 1980 by the American
husband and wife hairdressing team, Arnie and Sydell
Miller. The Millers wanted to provide hairdressers with
a comprehensive range of products that would help them
grow their businesses and provide the means to take full
advantage of their talent and creativity.
Luxury Product
Lancôme affirms that happiness is the most attractive beauty. It’s a skin deep emotion,
awakening every sense. Today the brand is present in
approximately 130 countries, with about 20,000 beauty
advisers in as many points of sale offering sophisticated
services and iconic products to an international clientele.

Kiehl's was founded as an old-world apothecary in New

York's East Village neighborhood over 166 years ago. Its
unique and extensive background represents a blend of
cosmetic, pharmaceutical, herbal, and medicinal
knowledge developed and advanced through the
generations.

Active Cosmetics
Vichy thermal Mineralizing Water is at the base of all our Vichy formulations. All of our skin
care products are co-developed with health
professionals such as dermatologists and pharmacists
and integrate only allergy-tested ingredients inspired by
nature and dermatology in formulas that are efficacious
and suitable for sensitive skin.

Giorgio Armani makeup is meticulously developed and

widely acclaimed by makeup artists worldwide for its
constant innovation and has emerged as the undisputed
master of color. Giorgio Armani is a must in foundation,
with products such as the uncontestable Face
Fabric and the revolutionary Maestro Fusion Makeup.
 STP ANALYSIS

Segment analysis of L’Oreal corporation:

L’Oréal has segmented the market based on the demographic factors such as L’Oréal LUXE
for upper middle and upper-class customers who wear beauty as their identification, Dark &
Lovely for African women’s, professional products for customers offerings/ enhancing the
looks of individual customers.

For targeting differently segmented of customers with its 34 brands in several product
categories, it has devised differentiation strategy to target middle, upper middle and upper-
income class customers majority of who are working professionals and are those who want to
flaunt their personas.

The brand has positioned itself as most ethical cosmetics and beauty Care Company focusing
on Universalisation i.e respecting the differences in cultures, desires, and aspirations of the
internal & external stakeholders.

L’Oreal has presence in all price segments, all regions and for all psychographics.

L’Oreal has four major brands L’Oreal Luxe, Consumer Professional Product Division, Active
Cosmetics Division and Product Division.

Luex Division (Parfums et Beauté) Leading brands in this division are Helena Rubenstein,
Lancôme, Cacharel, Biotherm, Guy Laroche, Paloma Picasso, Lanvin, Ralph Lauren, Giorgio
and Armani.

The Consumer Division (Produits Public) is made up of several companies, each of which
marketed its own brands: L’Oréal Paris (Studio Line, Plénitude, Elnett,
Elvive/Elsève/El’Vital), Maybelline New York and Jade, Laboratoires Garnier (Belle Color,
Ultra Doux, Ambre Solaire, Neutralia, Fructis), Gemey Paris (Gemey, Kookaï, Club
Méditerranée, Naf Naf), LaScad (Dop, Narta, Fluoryl).

Professional Division (Coiffure) having 25% shares in the market and world leader in its
segment. The leading brands in this division are L’Oréal Professionnel, Redken, Inné and
Kérastase.

The Active Cosmetics Department (Cosmétique Active) This division’s leading brands are
Laboratoires Vichy, La Roche-Posay and Phas.
 SWOT ANALYSIS

STRENGTHS

Strong and Focused Brand Portfolio.

Presence in Emerging Markets.
Strong R&D Capability.
Variants available.
Geographical Coverage.

WEAKNESSES

Dependence on Western European Markets

Late Entry into Asian markets.
Unable to gain much of market share.

OPPORTUNITIES

Growth in Adjacent Categories.

Demand for Natural Cosmetics.
Growth of Direct Sales Channels
Changing Consumer Lifestyles.
Beauty products market growing with a significant rate.

THREATS

Competition from Private Labels.

Price Competition among Branded Manufacturers.
 PLACE STRATEGY

To run a company in profit the place factor out of the 4p’s of marketing mix plays a very crucial
role. This includes decisions about where to sell the product or concerns about where the
customers are, and how to get to them. It also includes the "channel of distribution" - meaning,
all the different middlemen a company use to get the product out to the customer. L’Oreal’s
success in the cosmetic industry is due not only to their high quality, but also to the
corporation’s marketing efforts to make sure their various brands have a strong market
presence. In past 100 years that it has expanded, it has supplied to 130 countries with offices
in 58 different countries. To make its presence feel in different parts of the world L’Oreal has
acquired many different companies like “The Body Shop International plc”, known as The
Body Shop, which has over 2,000 stores in more than 50 countries.

As stated above in the Product strategy L’Oreal believes in Brand extention its acquisitions
represent L'Oreal’s ambition to capture Asian market. They have the same product business
with L'Oreal. In China the acquisition will enhance L'Oreal’s market position in skincare and
acquire distribution channels Mininurse had. It is also a preparation for the future expansion
in the most fast-growing market China. By acquiring Shu Uemura, L'Oreal want to use this
Japanese brand to compete with SK-…¡which was a competitor in the same level, in order to
meet the trend of prevalence of Japanese cosmetic brand in Asia. This is considered to be an
effective and cost-efficient strategy which is consistent with L'Oreal’s overall brand
architecture

As we know the brand loyalty of L’Oreal is very high and hence L’Oreal follows a pull strategy.
Customers of L’Oreal goes directly to the outlets and buy the products.
 DISTRIBUTION CHANNEL

It has been distributing its products through the traditional medium like wholesalers,
Retailers, Pops & Mom stores, and e-commerce websites.

E-commerce websites have played a pivotal role in the distribution as through

this channel company has witnessed sales growth of 34% in the year 2017 vis-a-vis 2016. Its
online sales accounted to $2.5 billion in the year 2017. Additionally, through Travel Retail
channel i.e. duty-free stores on Airports, it has observed sales growth of 19% (In 2017).

The brand has been continuously focusing on New Markets (43% sales in which Asia-Pacific
contributes 27%) other than Western Europe (30% sales) and North America (27%).

Second Level Consumer Marketing Channel

Manufacturer Wholesaler Retailer Consumer

 PRICE STRATEGY

The target segment for any product is that homogeneous group of people which is purported
to be the most potential customer for the product. The market follows the Pareto Principle,
which says that 80 per cent of the sales come from 20 per cent of the people. Thus, for any
product, one of the major tasks of marketers is to identify the group of 20 per cent that gives
80 per cent revenue of that product’s sale to the company. No surprise then that major
marketing efforts of companies attempt to attract the most potential group. In the present
stage of immense competition, companies are required to effectively plan their pricing
strategies to not only retain current customers but to also expand the customer base by
targeting new segments with an aim to convert them into loyal customers.

Trying to strike a balance in its pricing strategy for the Indian market, `L'Oreal India Private
Ltd believes that by introducing more stock keeping units (SKU's) it will be able to tide over
the steep pricing of its products.

L'Oreal is looking at pricing in the Indian context and there is a kind of balance they have
struck. Considering the large number of SKU's that they already have worldwide, they are
planning to market the products at an almost comparable pricing.

Considering the company has set up its manufacturing facilities in Pune and has also been
sub-contracting its products, it has been easier for it to control its prices in the Indian market.

For aspirational products Garnier has adopted an international pricing strategy, which may
not be the case for the rest of the products. However, there is no hard and fast rule. Besides,
the company has also been customizing its products for the Indian market and there is
expected to be a blend of both international as well as Indian formulations for its products.
For instance, its Garnier brand of Color Naturals is an `Indianised' product.

L'Oreal’s innovations always start from its luxury brands then penetrate to the brands in
different price level and different markets eventually implemented in its consumer brands.
The innovations based on the same technology platform will reduce the cost. The knack for
L'Oreal to create the advantages is to spread around strategic investment by sharing the
production of innovation between different product divisions. L'Oreal not only focuses on the
single brand but also pays attention to the technology relevancy in the series of brands. For
example, L'Oreal first introduced a break through anti-aging composite by using Lancôme
brand. Subsequently, it was implemented in Vichy brand and brought into the consumer
product division eventually. The broad distribution channel of consumer products was used
to promote this technology at last. In term of same products in the different market, L'Oreal
also exerts the technology platform to meet the specific needs of consumers. From L'Oreal’s
experiences, the core technology platform is a key component to the success of an international
company with complicated brand house. Without leveraging the resources between brands, it
will cause increase of operational cost and waste of resources and will be very hard to manage
the L'Oreal’s sophisticated brand architecture. Other than building the brand structure
according to the product identity, L'Oreal relied on distribution channel to carry out its
strategy of brand structure. There are four product departments in L'Oreal’s structure. Every
department has several brands and each brand has many names. They are conspicuously
different in packages and with distinct image and advertising. The different brands share the
resources of distribution channel and have high integration effect on management. The luxury
brands of L’Oreal are sold in strictly selected distribution channel like department store,
perfumeries and tax free shop. Professional products are provided to the hairdressers. Active
cosmetic products are sold in pharmacists. The most important sector consumer products are
distributed through mass consumption channel like department store and supermarket.

L'Oreal has formed a brand matrix with great power of integration. Any new brand merged
into the relevant channel will fully utilize the resources in existing channel as well as expand
L'Oreal’s whole distribution channel by integrating its original channel. The dissemination of
brand will improve company’s overall influential power.

L'Oreal recognized the leverage effect of it brand and focus its propagandas on brand rather
than propagandas on particular product. It is dedicated in building the relationship between
its brand and the market. It aims to enhance brand power by maintaining the good image in
publicities. L'Oreal’s efforts were also embodied on its marketing strategy. It always
concentrates on supporting those brands which can mostly represent its advantages and
leverage resources to those premium products. Firms that aim to expand internationally or
strengthen market position tend to acquire new brand into the brand architecture.

L’Oreal also follows the bundling strategy to increase its sales. They come up with a customized
make up kit and sell it at a discounted rate. By discounting such products, L’Oreal taps the
potential buyers easily.
 PROMOTION STRATEGY

L’Oreal has been very active and upfront in adopting new promotional techniques to market
its products. The company follows a very popular technique to advertise and market its
products that was the Viral Marketing policy. Viral marketing is a term coined to define the
productive ways a marketing message is made available. And corporate are using the medium
to circulate brands and brand messages. The idea has caught on like a virus, as efficiently as
Information Technology has entered households and businesses.

Firms are now structuring their businesses in a way that allows them to grow like a virus and
lock out the existing brick and mortar competitors through innovative pricing and exploitation
of competitors' distribution channels. The beauty of this marketing technique is that none of
it requires any marketing. Customers, who have caught the virus, do the selling. Viral
marketing describes any strategy that encourages individuals to pass on a marketing message
to others, creating the potential for exponential growth in the message's exposure and
influence. Like viruses, such strategies take advantage of rapid multiplication to explode the
message to thousands, to millions.

Off the Internet, viral marketing has been referred to as "word-of-mouth'', "creating a buzz'',
"leveraging the media'' and even "network marketing.'' It's a deceptively simple concept:
Create a message, send it via e-mail, and make it so compelling that recipients want to pass it
on to everyone in their address book. Advertisers are hot on the tactic and the idea of putting
consumers to work spreading the word about a brand or service seems sound.

CONTEST: - When Garnier launched its Fructis shampoo, they latched on to the idea. The
firm had to introduce the aspect of five time’s stronger hair and the firm had a braid
competition whereby consumers could register on a site and create a knot on the Fructis braid,
as part of their entry into the contest. The knot creation was actually created (visually
presented on the site) and as a next step, consumers were expected to invite their friends to
visit the braid and add to their score. A record 76,000 consumers created their own knot on
the braid and forwarded the link to more than 82,000 of their friends, a survey report
indicated. Viral marketers practice delayed gratification. They may not profit today, or
tomorrow, but if they can generate a groundswell of interest from something free, they know
they will profit soon and for the rest of their lives. Since 'Free' happens to be the most powerful
word in a marketer's vocabulary, most viral marketing programmes have attached themselves
to it. The idea is to give away valuable products or services to attract attention. And, more
importantly, someone else's resources are depleted rather than our own. Garnier has
positioned itself as a lifestyle product mainly targeting teenagers and young girls. This is very
evident from Garnier ads be it for Garnier fructis shampoos or for hair color. In a recent
advertisement of Garnier hair color, a daughter advises her mother to try the product and thus
makes an attempt to promote product among middle- aged women. Hence, expanding the
base of the target segment gives a whole new market to marketers, provided they are successful
in convincing the customers of the second-rung segment.

Mr. Pramod Jain, Marketing Manager L’Oreal (Nagpur) said “Companies need to be very
strategic in presenting the product and its features to attract another segment. At the same
time, companies need to be sensitive about the impact of targeting other segments on the
existing target segment. It may be damaging, especially, if in a process of expanding its
customer base, a premier brand is targeted at the aspiring middle-class also. In case of any
signals of lowering demand with the existing target group, companies should adopt line
extensions by bringing suitable changes in the products.”
L’Oreal Paris Launches New Campaign to Boost Young People’s Confidence
L’Oreal Paris have long been advocates of self-love. And now, the beauty giant has partnered
up with The Princes Trust to launch the ‘because we’re all worth it’ campaign.

L’Oreal Paris knows all too well the problems millennials face. Uneven complexions and
lifeless hair aside, the biggest, is confidence.

L’Oreal Paris' aim is to ‘turn self-doubt into self-worth’, and it’s using ambassadors Helen
Mirren and Cheryl Cole to do so. The initiative believes that confidence is the biggest barrier
to success and so ‘working together, [L’Oreal Paris and The Princes Trust] want to remove this
barrier and help them reach their potential’.

That said, this programme is inclusive of everyone, whether a makeup wearer or not. Both
partners are leveraging their collective know-how and experience with millennials to change
the way they perceive themselves and most importantly their potential.

In addition to a confidence course that will run alongside existing activities and programmes
at the 18 UK Prince’s Trust centres, there will also be two ‘worth it’ spaces in Kennington and
Salford respectively. And because some are limited by mobility and geography, there’s an
online programme too. The various facets of such programmes include relationships, body
language, interview, and employability skills.

Notes: The Prince's Trust is a charity in the United Kingdom founded in 1976 by Charles,
Prince of Wales to help vulnerable young people get their lives on track. It supports 11 to 30-
year-olds who are unemployed and those struggling at school and at risk of exclusion.

POINT OF PURCHASE DISPLAY: - L’Oreal apart from its own outlet puts its product in
display at various places. We have seen L’Oreal stalls in malls, various unisex saloons, VLC
outlets etc. This kind of display allows the consumer to see the product and enquire about the
same.

RELYING ON INTERNATIONAL AD CAMPAIGNS: - Increasing its ad spend for the launch

of its new products, L'Oreal has been relying more on its international campaigns to make an
impact in the Indian market. McCann Erickson in Mumbai handles the L'Oreal and Maybelline
account while Publicis India is in charge of Garnier. "The ad accounts have been aligned
according to our international affiliations with these agencies and we try to have a mix of both
the Indian and international ads," says Mr. Rajgopal.

L'Oreal India currently has three brands in its consumer products portfolio and there are
product overlaps between its hair care, skin care and color cosmetics brands. Garnier, L'Oreal
and Maybelline have been defined by their price segments and positioning.
OTHER PROMOTION STRATEGY: - The cosmetics giant is using hairdressing schools to
stimulate demand for products many Indians saw as an alien extravagance.

Since it opened its first academy in Bombay in 2006, 73 hairdressers have graduated. The six-
month course turns out professionals capable of working as a junior in one of the select but
growing number of international-standard salons in India’s big cities.

L’Oréal’s distribution network also plays a vital role. Over the past decade the company has
trained more than 30,000 hairdressers in India in the use of its products.

And it has helped to establish about 300 salons in the past five years. The theory is simple: If
there is no natural demand for your goods, stimulate it. “We have created a profession and a
market,” Didier Villanueva, L’Oréal India’s country manager, said. “If you train people they
will use your products.”

In a media-driven culture obsessed with Bollywood, urban consumers are very demanding and
image is everything. They read glossy magazines such as Vogue, which launched an Indian
edition in September, and follow the changing fashions of their favourite celebrities.

Much like Britain’s tabloid fascination with David Beckham’s changing hairstyles, the recent
decision by Mahendra Singh Dhoni, the 26-year-old captain of the one-day cricket team and
the face of Brylcreem in India, to chop his long locks made front-page news.

Unprecedented economic growth in India, which is forecast by McKinsey to become the

world’s fifth-biggest consuming nation by 2025, has created a raft of opportunities for
international lifestyle brands.
Emerging markets such as India are driving the growth of the cosmetics industry. L’Oréal,
which uses Aishwarya Rai, the Bollywood star and former Miss World, as one of its
international faces, estimates there are 70 million potential consumers being created every
year.

Its sales in India, where it is No 2 behind Unilever, are growing at 35 per cent a year. This year,
they are about €100 million (£71 million).

Although L’Oréal’s professional products division represents only 17 per cent of total revenues,
hair color was the Paris-based group’s genesis and remains the creative heart of the business.
Money-spinning mass-market brands such as Garnier are being pushed hard in India, where
the company estimates there is a market of 50 million people.

In India, advertisements for L'Oréal-branded products and the company's Garnier line
generally feature a pale model and focus on the ingredients in the product, using take- action
language like "YES to fairer and younger looking skin" or "Against inside cell damages."
 RECOMMENDATION

1. L’Oreal should more actively participate in fashion events as it will increase the Market
presence of the brand.

2. L’Oreal focuses more on Word of mouth publicity and it believes in Viral Marketing,
hence it should focus more on making the consumers use the product for the first time.
If a consumer uses the product, there is a high probability of them using it again.

3. L’Oreal should focus more on including natural products in their product portfolio. We
have Garnier in the list which uses natural ingredients; however we can include other
brands too. We can still put Maybelline in the premium color cosmetic segment but we
can use the natural ingredients in place. People today are more concerned about the
quality of the product apart from that they are also concerned about the effects and
side effect of the same, hence L’Oreal should take this into consideration.

4. L’Oreal’s target customers are middle class and educated people (mostly working and
youngsters). L’Oreal has already captured most of the market where they can tap their
target audience; however once are where they can approach would be the corporate
offices. They can put up a stall of L’Oreal in the office premises of different corporate,
allowing the employees to check new products and buy the one they want to.
 EXHIBITS

Exhibit 1

MAIN WORLDWIDE PLAYERS IN SALES

35
29.4
30

25 21.5
20
USD bn

15 12.4 12.8
8.8 9.2
10

0
SHISEIDO COTY P&G ESTEE LAUDER UNILEVER L'OREAL
PLAYERS

Source: WWD, Beauty’s Top 100, May 2018. Based on 2017 sales. Excluding soaps, oral hygiene,
razors and blades. Excluding currency effects. (4) Cosmetics sales estimate by WWD.

Cosmetic market has witnessed huge growth potentials. The market has grown at ~ +5.5%.
Figure 2 shows the growth rate of last 10 years.

Exhibit 2

Source: L’Oréal estimate of the global cosmetics market in 2018 based on manufacturers’ net prices.
Excluding soaps, oral hygiene, razors and blades. Excluding currency effects.
Exhibit 3

Sales 2018 by Division

8

12

Consumer Products
45
L'Oreal Luxe
Professional Products
Active Cosmetics

35

Exhibit 4

Sales by Business SegmentGeography

4%
9%
Skin Care
11% 33% Makeup
Haircare
Hair colouring
Fragrance
16%
27% Others

The market can be further broken down by business segment. Skincare dominates 39%,
haircare 21%, Makeup19%, Fragrance 11% and Hygiene products 10%. Figure 3 reflects the
same in pie chart.
Exhibit 5

Sales by Geography
3%
6%
7% Western Europe
30% North America
Asia Pacific
Latin America

27% Eastern Europe

27% Africa, Middle East
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