This essay describes about the growth and development of world’s number three and Europe’s number one pharmaceutical company L’Oréal and its’ business strategies. The company was started in 1909 by a chemist, Eugene Schueller. He started this company with a new formulation of hair dye that later developed into a multinational company. Currently, 500 brands and thousands of other beauty products are manufactured by L’Oréal. This company has six research and development centres in the world. Further, this essay also discusses the definition and meaning of STP Process i.e. segmentation, targeting and positioning and its role in making the companies successful.
Segmentation Marketing:
The world is occupied with many different customers, each …show more content…
These factors impact the decision making ability of the company. All the stakeholders of the company form as micro-environmental forces. Stakeholders are the ones who are affected by the decisions of the company such as shareholders, competitors and general public.
SWOT Analysis:
Strengths:
Innovation: Thinking something innovative is the speciality of L’Oréal. Clarisonic, a skin care device is the evidence of advancements done in research and development by L’Oréal.
A well segmented Portfolio: L 'Oréal has a well segmented portfolio which helped L 'Oréal to continue sales growth even during the times of financial crisis.
Weaknesses:
Less dynamic hair care: Hair care is less powerful for the success of L’Oréal and responsible for drop in the market share of L’Oréal. The main competitors of L’Oréal are Unilever and P&G in making hair care products.
No Natural or Organic products: L’Oréal does not manufacture natural or organic products. But, It has taken a good step in relaunching the organic beauty products’ company The Body Shop.
Segmentation Marketing:
The world is occupied with many different customers, each …show more content…
These factors impact the decision making ability of the company. All the stakeholders of the company form as micro-environmental forces. Stakeholders are the ones who are affected by the decisions of the company such as shareholders, competitors and general public.
SWOT Analysis:
Strengths:
Innovation: Thinking something innovative is the speciality of L’Oréal. Clarisonic, a skin care device is the evidence of advancements done in research and development by L’Oréal.
A well segmented Portfolio: L 'Oréal has a well segmented portfolio which helped L 'Oréal to continue sales growth even during the times of financial crisis.
Weaknesses:
Less dynamic hair care: Hair care is less powerful for the success of L’Oréal and responsible for drop in the market share of L’Oréal. The main competitors of L’Oréal are Unilever and P&G in making hair care products.
No Natural or Organic products: L’Oréal does not manufacture natural or organic products. But, It has taken a good step in relaunching the organic beauty products’ company The Body Shop.