• Profit : 

2, 370 million € in 2005 excluding non-recurrent items.

•  Worlwide Employees :

L’Oréal has got more than 52,000 worldwide employees, with almost 3,000 of them working in research and developpement. Most of them are working in Western Europe or in France, the native country of the brand.

• Consolidated Sales

 These sales are expressed in millions and in €uros. They show the benefits made by the company in one year in France.

• 2005 consolidated sales by division :

We can notice that the best profit has been made by the consumers products. Active cosmetics sales are increasing the most. Luxury and professional products are doing fine anyway.

Although it is often disputed, critisized or diverted, L’Oréal is nowday the number one of the cosmetics world, widening each year its sector of activity by repurshasing large companies which keep its prestige safe. It’s turnover is incredible and increses every day. Women of the world are now only swearing by L’Oréal. The company is worth it,but what will stop its ascension?

 It has remained the same since 1939, its date of birth.

•  The slogans :

         Created in 1997 for L’Oréal Paris, the slogan “I am worth it”, a little bit arrogant and provocative is now a worlwide one, even if it only represents 3% of the advertisement budget. The slogan has been created for the beginnings of the hair color “Preference” in the US. By that time, this hair color was the most expensive one, and to justify its cost, the ambassadress was saying “I am worth it”. Its affirmative tone free the consumers’ feminist aspirations in emerging countries and its individualism strikes women from developped countries.

• Different examples :

        Parce que je le mérite bien (Canada), Because I am worth it (English-speaking countries),  Weil ich es mir wert bin (Deutchland), Porque yo lo valgo (Spanish-speaking countries), Perché io valgo (Italia), Fordi jeg fortjener det (North european countries), Porque usted lo merece (Mexico), Porque eu mereço (Portugal)…

• Ambassadors :

         To emphasize its prestige, L’Oréal offered itself a panel of celebrity from actresses, sportives to models and singlers, male or female.

Eva Longoria-Actress

Beyoncé Knowles-Singer

Milla Jovovich-Model

David Guetta-DJ

• Research: Budgets are daily increasing, bringing the innovation necessary to the development of the company.
• Geographical Expansion: L’Oréal intensifies its relationships with South America, emerges in Europe and creates new subsidiaries in Asia.

L’OREAL’S STRENGHT

- It’s position on every distribution network:

                         -> 60 to 70% in hypermarkets.

                         -> 30 to 40% in supermarkets.

By the diversity of its brands, l’Oréal favors the accessibility to its products making them easy to find for the customers.

               – A daily Innovation Policy:

L’Oréal keeps on launching new products. Leaning on a daily innovation and upgrade of the research laboratory, the subsidiary offers to its customers high-quality products at a reasonable price.

               – L’Oréal is the first patent deponent in the world.

The firm owns 20,000 cosmetic patents effective in the world.

                - Communication:

The firm broadcasts its ads all over the world , contracted famous stars such as Eva Longoria, Laetitia Casta, Beyoncé… and owns the magazine Marie Claire.

L’OREAL WEAKNESSES:

  - Products’ fall from fashion:

Every year the firm organizes the “l’Oreal marketing scholar award“: Students try to find solutions and new formulas to increase the sales. The winner create packaging of their proposal.

               – Adaptation problems to the decrease of sales.

They now want small size perfumes, packs of 2 shampoos… ; in addition the firm has to face the competition of other distributors.

L’Oréal was born in 1907 when Eugène Schueller, a young french chemist, invented a synthetic formula to color the hair. This formula is nicknamed “Auréole“. On july, the 30th, 1909, he set up a French company of innocuous hair color, with André Spery, his accountant. It’s in 1936 that it became a limited liability incorporation, and in 1939 an SA and turned its name to l’Oréal.

In a century, only 4 chief executive officers managed the subsidiary : Eugène Schueller ( 30/07/1909 – 23/08/57 ), François Dalle ( until November 1984 ), Charles Zviak ( until September 1988 ), Lindsay Owen-Jones ( until April 25th, 2006 ). Today, Jean-Paul Agon is going to take over him.

Lindsay Owen Jones and Jean Paul Agon

Organized in distribution channels, l’Oréal has 4 operational divisions :

• Professional products. The former activity of the firm for hair-style professional : Kérastase (created in 1964), Redken 5th Avenue (repurshased in 1993)…

• Consumer Products. The most famous activity of the group : L’Oréal Paris (main brand), Garnier (bought back in 2003), Maybelline…

• Luxury Products. The most profitable activity, in small quantity : Lancôme (repurshased in 1964), Cacharel…

• Active Cosmetics. highly technical activity, dermocosmetic care : Vichy, La Roche Posay…

The products are sold in 130 different countries with subsidiaries in 58 different countries.