BRAND AUDIT ON

PRESENTED BY: GROUPBIBEKANANDA SWAIN – 15202136

REEK GHOSH- 15202155SAMARJIT MOHANTY- 15202160

SOUMAYATA PANIGRAHI- 15202176SANDIPIKA SNEHA- 15202264

PRASANTA Kr. PRUSTI- 1218030

The History Of the company…• In 1907, a young French chemist Eugéne Schueller

developed an innovative colour formula;• In 1909, he registred his own company;• In 1920, the small company employed 3 chemists;• In 1912, Eugéne Schueller started to export his

products;• In 1933, he created and launched Votre Beauté, a

magazine devoted to women;• In 1953, L‘Oréal won an advertising Oscar.

About the industryThe cosmetic industry is a profitable business for most of the

manufacturers of cosmetic products.

The cosmetic industry world wide seems to be continuously developing, many famous companies sell their cosmetic products online also in countries in which they do not have representatives.

Product Portfolio: Personal care

Hair color Skin care Hair care

Fragrances Color cosmetics

MARKET SHARE OF L’OREAL

Other brand’s

59%

L'Oreal41%Hair colour 20%Skincare 6.5%Shampoo 4.6%

LAKME

REVLON

NIVEA

CHAMBOR

Competitors in Indian market

• Gender Segmentation• “combination of low price and natural ingredients would fit India’s market, women use plants and herbs as part of their beauty culture”. specifically catered to the women of India, how it should carve a niche market for itself in the Men’s sector as well.

• Income Segmentation: • The quickly rising middle class which was gaining in affluence. • Fastest growing income class that represented a highly untapped market potential

due to their radically different mindsets from the masses.• Age Segmentation: • The younger middle class from the more conservative, often older Indians, • Showed an increased interest in capturing the market share of the younger

Indians.

SEGMENTATION

young affluent middle class females, especially those with graying hair• maximum profits as it not only possessed the purchasing power that

masses lacked, but more critically a modernized mentality • these people more receptive to purchasing L'Oréal’s more luxurious

and expensive products.. L’Oreal also target women that sought benefits from using its products

• no product that solved women’s hair greying problems.

TARGETING

POSTITIONINGL’Oreal hired Ms. World in an

advertisement

• L’Oreal India launched the program “Beautiful Beginnings” on 7th July 2009, an initiative which aimed to train at least 200 unprivileged school drop-out girls every year to make them employable. It was even inaugurated by Bollywood actress Aishwarya Rai Bachchan ,

DIFFERENTIATION Home brands aimed to garner loyalty of existing users • repeated use by generations of Indians would bring about feelings of trust and

dependability• attracted thrifty housewives who wanted the cheapest products

DIFFERENTITATED : By promising better quality products to the rising middle class

• When L’Oreal first entered India :beauty education was absent, training seemed redundant and hairdressers were well satisfied with cheap local domestic brands

• invested heavily in education and training to boost their status in the community.

Brand Diversity

• Famous for its Huge brand diversity and brand management in different countries and cultures.

Good Research &

Development

• Highly efficient R&D department.• Spending 3% revenue on R&D each year.• 2700 researchers. Worldwide.

Modernised approach of advertising

• Celebrities from different cultures are used for advertisements.• Programs and events adds more effect to advertisements.

Findings & Learning

Target Market

• Middle aged and working women became the main target of the company.

Awareness

• Established education centers are in many countries.• Conducted programs related to hairdressers.

Mass Marketing

• Opted complete makeover of the companies by providing wide range of products.

Brand Positioning

• Company has a strong and long-term brand positioning specially within the minds of middle age women and teenage girls.

POP & POD

• L’Oreal does not appreciate points of parity.• They believe to provide products different from their competitors

(P&G and Kevin care).

Science Based Approach

• Known as Scientific beauty company.

Brand Consistency

• L’Oreal focuses over all to improve and develop the different brands it acquired in different regions.

• Maybelline is the best example of consistency.

Distribution Channel

• Distributed is done with respect to its need and is cost effective.• Used agents and consignments to USA, Japan and other Asian

countries.

Understandings

• Company was brilliant in identifying the needs, cultures and aspirations of different kinds of customers in diversified regions.

RESEARCH METHODOLOGY • Location- KIIT UNIVERSITY, PATIA• Sampling type- Simple random sampling • Scaling technique- Non- comparative Scale- Likert scale• Targeted Customers

• Females between the ages of 18 – 40 years

• Sampling Size- 144• Collection of data- Primary and Secondary data.• Research Tools & Methodology

-SWOT analysis, Pie-charts, Histograms, Chi-square

88; 61%

32; 22%

18; 13%

6; 4%

Age Group

18-25 25-30 30-35 35-40100-300 300-600 600-900 Above 900

0

10

20

30

40

50

60

70

80

90

Respondents

ANALYSIS AND RESULTS

Relationship between Positive Product Usage and Age group

A chi-square test indicated that age is dependent on positive product usage. The 18-25 age group were the highest

percentage of users (84%) of L’Oréal products, followed closely by the 25-30 group (65%), then by the 30-35 age

group (33%) and lastly the 35-40 age group (16%).

Familiar

Used any L'Oréal products

Totals Yes No

Yes 74 10 84

No 2 2 4

Totals 76 13 88

18-25 Age group

Familiar

Used any L'Oréal products

Totals Yes No

Yes 21 8 29

No 1 2 3

Totals 22 10 32

25-30 Age group

Familiar

Used any L'Oréal products

Totals Yes No

Yes 6 9 15

No 0 3 3

Totals 6 12 18

30-35 Age group

Familiar

Used any L'Oréal products

Totals Yes No

Yes 1 4 5

No 0 1 1

Totals 1 5 6

35-40 Age group

VARIABLES INVESTIGATED 1. Brand Awareness

Yes No

120

11

Familiarity

No.

of o

bs.

Familiar

Used any L'Oréal products

Totals Yes No

Yes 120 24 144

% 83.33% 16.67%

Totals 120 24 144

1 2 3 4 5

63

46

23

83

Degree the brand is recognized (1= very easily; 5= not very easily

No.

of o

bs.

2. Brand Attitude

1 2 3 4 5

40

59

35

73

Level of positiveness (1=Most; 5= Least)

No

of o

bs

Variable Good Likeable High Quality Attractive Desirable Superior

Majority Rank 1 2 1 1 2 2

% Respondents 41 41 45 37 36 39

Personality Attribute Majority Rank % Respondents Reliable 2 38

Intelligent 2; 3 36

Successful 1 41

Leader 2 41

Confident 2 36

Trendy 2 37

Exciting 2 34

Young 2 31

Unique 3 34

Imaginative 3 48

Up-to-date 1 36

Friendly 2 36

Real 2 31

Upper Class 1; 2 32

Glamorous 1 35

Good Looking 2 37

Feminine 1 50

3. Product Attitude

Variables Interesting Beneficial Enjoyable Superior Fond of

Value for Money Exceptional

Majority Rank 3 2 2 2 2 2; 3 3% Respondents 35 42 37 38 38 33 38

Correlation Tests between Spend Category and Product Attitude Variables.

Variable 1 Variable 2 Spearman Spearman (p-value)

Spend category Interesting -0.15645743 0.00219294

Spend category Beneficial -0.12773133 0.01330884

Spend category Enjoyable -0.15029453 0.00331589

Spend category Superior -0.15262262 0.00333481

Spend category Fond of -0.12152043 0.01953969

Spend category Value for money -0.15329325 0.00252913

Spend category Exceptional -0.13577962 0.00873736

Variable 1 Variable 2 Spearman

Spearman (p-value) Superior - Brand Superior - Products 0.693176565 0.02

Correlation Test between the Attitude that the Brand and Products are ‘Superior’.

Indicating a (strong medium) positive linear relationship

Indicating a (weak) negative linear relationship

4. Level of Desire for the Brand

Very Strong Strong Mild Very Weak

13

51

69

11

Level of Desire

No.

of o

bs

Bar graph indicates that the majority of respondents (48%) indicated that their level of desire for the brand was only ‘mild’, whilst 35% had a ‘strong’ desire for the brand.

18-25;25-30

18-25;25-30

35-40

35-40

AGE GROUP ACTUAL DESIRABILITY

SCORE

ACTUAL EMOTIONAL

IMPORTANCE SCORE

18-25 2.52 2.08

25-30 2.55 2.04

35-40 2.96 2.4

5. Value Proposition

The sixth, and final, brand characteristic that was investigated was the Value Proposition of the brand.

The information that was sought included: The ability to determine which age group places the most /

least emphasis on functional, emotional and self-expressive benefits as sought by the brand / products.

Benefit

Majority Rank

% Majority of Respondents

Age Group which regards benefit as most important

Age Group which regards benefit as least important

Functional 1 43 18-25 35-40

Emotional 1 36 18-25 35-40

Self-Expressive 3 29 25-30 35-40

SWOT ANALYSIS

Conclusion• The various tests conducted on the data obtained from the implementation of the questionnaire allowed the

author to understand the various drivers for purchasing personal care products. Identified that a high level of brand awareness is an important driver with regard to influencing purchasing behaviour.

• A few analyses with regards to the desirability for the brand indicated that there was a difference in the levels of desire according to age group. It was shown that the age group which had the most desire for the brand also displayed the most positive behaviour with regard to purchases (behaviour).

• Further tests were performed which gave a clear indication that it is possible to see the effect that a favourable perception / attitude of the corporate / product L’Oréal brand has on influencing behavioural intention and ultimately the end behaviour (purchases).

• In terms of identifying whether or not the current value proposition of L’Oréal is suited to the target audience, the overall impression is that it would be a strategically important move if L’Oréal were to try to develop a stronger emotional bond with their target audience, a well as to find ways in which to ‘sell’ to the consumer unique self expressive benefits which can be gained when using L’Oréal branded products.

• The survey also revealed the weaker presence of L’Oréal amongst the 35-40 age group and above. This weakly tapped market could be a valuable additional income stream for L’Oréal if they were to develop actions to enhance the brand imagery that this group associates with the L’Oréal brand positively.

• These actions should lead to long-term strategic and market-related benefits (e.g. market share) for L’Oréal within the target audience of this study.

Thank You