L’Oreal -Because you’re worth it

L’Oreal is world’s largest cosmetic brand. It was founded in the year 1909. As we know it takes a lot of time to build a brand name. L’Oreal brand journey started with investment in its R&D facility to develop unique products with high quality. It did not make any sort of compromise in innovation which can be understood by its spending on R&D with 3% of the total revenue each year. It has registered 497 patents by 2015 in its name.

What would have happened to L’Oreal had it not marketed its products and just focused on innovation, then it would have never achieved what it is now. So, it designed it branding strategy by aggressive marketing. It roped in popular and beautiful celebrities in different parts of the world making a sense in the mind of the customer that using these products actually works and worth it. It also used tag line “Because you’re worth it” for promotion of hair products.

It imbibed value addition in its products by developing relationship with the customer with personal beauty advisers at the departmental stores. For Professional brand of products it provides training to the professionals in beauty care segment.

Even though the prices of L’Oreal products were a bit higher than the other brands but it brought a sense of worth in its products through its quality and value addition.

L’Oreal offers a large variety range of goods and services to its customers through the five brand segments. L’Oreal employed house of brands strategy. It introduced new brand for every product line. The advantage it had that there was no negative influence of one brand on the other and each brand is unique and with high quality targeting multiple segments in the society. Now we will take a look at the speciality of each brand.

L’Oreal Luxe: It provides all the facets of beauty and elegances like skin care, make up and perfume. These are available at all the departmental stores, cosmetic stores, in own brand boutiques and dedicated e-commerce websites.

Consumer Products Division: This is available to largest number of people in the world. Its products are distributed by super markets and pharmacies. Brands under this division cover colouring products, hair care, make up and skin care.

Active Cosmetic Division: This meets different skin care needs and are available in health care outlets such as pharmacies, drug stores etc.

Professional Products Division:  These products are distributed to salons worldwide. The division can meet the needs of different hair care salons, for color, shape and styling, shampoos and general hair care needs. A privileged partner of hairdressers, this division offers them products made with the best technologies as well as high-level training, to ensure professional service (Loreal.com.au, 2016).

The Body Shop: With its brand expression, Beauty with Heart, all products are created using the finest ingredients sourced from the four corners of the globe, which are not tested on animals and are 100% vegetarian (Loreal.com.au, 2016).

In order to target the customers looking for Hair care in USA L’Oreal launched products targeting the people nine different hair types. Out of these Nine Products L’Oreal have proposed to distribute free sample to customers with normal or dull hair.

L’Oreal introduced advanced hair care products in order to meet the demand of customer looking for stunning hair despite having various problems to the hair and have professional treatment to hair.


L’Oreal in its website asked customers to login to the account in order to receive a free sample which helps them have customer information later it can seek feedback from the customer. This feedback is helpful for development of the product in future.

By this we can understand that L’Oreal is determined to meet the expectation of the customers and launch the products where customer requirements are met and also ensure it brand value is not negatively impacted.

Authored by:

Name: Mohammed Liyaqath Ali

Student ID: 215411643

Username: liyaqath09


Karimi, A. (2013). Loreal branding. [online] Slideshare.net. Available at: http://www.slideshare.net/aboozarkarimi/loreal-branding [Accessed 26 Apr. 2016].

Iacobucci, D. (2013). MM4. Mason, Oh.: South-Western College Publishing.

Lorealparisusa.com. (2016). Expert Tailor-Made Solutions for the Power to Change Your Hair. [online] Available at: http://www.lorealparisusa.com/en/offers/samples/advanced-haircare2/register.aspx [Accessed 26 Apr. 2016].

Loreal.com.au. (2016). L’Oréal Luxe. [online] Available at: http://www.loreal.com.au/brands/loreal-luxe.htm [Accessed 26 Apr. 2016].

Loreal.com.au. (2016). Professional Products Division. [online] Available at: http://www.loreal.com.au/brands/professional-products-division.htm [Accessed 26 Apr. 2016].

Loreal.com.au. (2016). The Body Shop. [online] Available at: http://www.loreal.com.au/brands/body-shop.htm [Accessed 26 Apr. 2016].

Loreal.com.au. (2016). Active Cosmetics Division. [online] Available at: http://www.loreal.com.au/brands/active-cosmetics-division.htm [Accessed 26 Apr. 2016].

Loreal.com.au. (2016). Consumer Products Division. [online] Available at: http://www.loreal.com.au/brands/consumer-products-division.htm [Accessed 26 Apr. 2016].





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