l'oréal, world leader in beauty. entrepreneurship perspective

7/30/2019 L'Oral, World Leader in Beauty. Entrepreneurship Perspective.

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LILIANE BETTENCOURT


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Historical Background.

Born in Paris, France, the only child ofLouise Madeleine Berthe and Eugne

Schueller, the founder of L'Oral. In 1907, Eugne Schueller, a

young Frenchchemist, developed ahair dye formula calledAurale.

On 31 July 1919, Schueller registeredhis company, the Socit Franaise deTeintures Inoffensives pour Cheveux

(Safe Hair Dye Company of France). The guiding principles of thecompany, which eventually becameLOral, were research and innovationin the field of beauty.
http://en.wikipedia.org/wiki/Eug%C3%A8ne_Schuellerhttp://en.wikipedia.org/wiki/L'Or%C3%A9alhttp://en.wikipedia.org/wiki/L'Or%C3%A9alhttp://en.wikipedia.org/wiki/Eug%C3%A8ne_Schuellerhttp://en.wikipedia.org/wiki/Eug%C3%A8ne_Schuellerhttp://en.wikipedia.org/wiki/L'Or%C3%A9alhttp://en.wikipedia.org/wiki/Eug%C3%A8ne_Schuellerhttp://en.wikipedia.org/wiki/French_peoplehttp://en.wikipedia.org/wiki/Chemisthttp://en.wikipedia.org/wiki/Chemisthttp://en.wikipedia.org/wiki/French_peoplehttp://en.wikipedia.org/wiki/Eug%C3%A8ne_Schuellerhttp://en.wikipedia.org/wiki/L'Or%C3%A9alhttp://en.wikipedia.org/wiki/Eug%C3%A8ne_Schuellerhttp://en.wikipedia.org/wiki/Eug%C3%A8ne_Schueller


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Historical Background Cont'd

In 1920, the company employed threechemists. By 1950, there were 100 ; thatnumber reached 1,000 by 1984 and is nearly

2,000 today. In 1950 she married French politician Andr

Bettencourt, who served as a cabinet ministerin French governments of the 1960s and 1970sand rose to become deputy chairman ofLOral.

In 1957 Bettencourt inherited the L'Oralfortune when her father died, becoming the

principal shareholder. In 1963 the company went public, although

Bettencourt continued to own a majoritystake.

In 1974, in fear that the company would getnationalized after the French elections, sheexchanged almost half of her stake for a threepercent (3%) stake in Nestl S.A.
http://en.wikipedia.org/wiki/Andr%C3%A9_Bettencourthttp://en.wikipedia.org/wiki/Andr%C3%A9_Bettencourthttp://en.wikipedia.org/wiki/Andr%C3%A9_Bettencourthttp://en.wikipedia.org/wiki/Shareholderhttp://en.wikipedia.org/wiki/Shareholderhttp://en.wikipedia.org/wiki/Nestl%C3%A9http://en.wikipedia.org/wiki/Nestl%C3%A9http://en.wikipedia.org/wiki/Nestl%C3%A9http://en.wikipedia.org/wiki/Shareholderhttp://en.wikipedia.org/wiki/Andr%C3%A9_Bettencourthttp://en.wikipedia.org/wiki/Andr%C3%A9_Bettencourt


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Historical Background Cont'd

Breakdown of share

ownership: 30.5% bythe Bettencourt family,29.3% by Nestl, 24.5% byinternational institutionalinvestors, 8.27% by French

institutional investors, 4.99%by individual shareholders,1.72% treasury stock and 0.7%by employees.
http://en.wikipedia.org/wiki/Liliane_Bettencourthttp://en.wikipedia.org/wiki/Nestl%C3%A9http://en.wikipedia.org/wiki/Treasury_stockhttp://en.wikipedia.org/wiki/Treasury_stockhttp://en.wikipedia.org/wiki/Nestl%C3%A9http://en.wikipedia.org/wiki/Liliane_Bettencourt


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Steps To Success.

1909-1956; The first steps, constructing amodel.

In 1909, Eugne Schueller, a youngchemist with an entrepreneurialspirit, founded the company that wasto become the LOral group.

Began with one of the first hair dyesthat he formulated, manufacturedand sold to Parisian hairdressers.

With this, the founder of the groupforged the first link in what is still theDNA of LOral: research andinnovation in the service of beauty.


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Steps To Success.

1957-1983; On the road to theGrand Loreal.

These are the formative years ofLe Grand LOral.

The company motto is Savoirsaisir ce qui commence (seizenew opportunities)

The Group starts to expand

internationally. Acquisitions of strategic

brands mark the beginning of aperiod of spectacular growthfor the company.


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Steps To Success.

1984-2000; Become number one in thebeauty industry.

These twelve years are marked by a greatperiod of growth for L'Oral, mainlydriven by the significant investmentsmade by the group in the field ofresearch.

strategic product launches that not onlymake history, but also succeed in

strengthening the Groups brand image. Group would completely change in scope

to become the world leader in cosmeticsthrough the worldwide presence of itsbrands and strategic acquisitions.


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Steps To Success.

2001-Present Day; Diversity of BeautyWorldwide.

There is no single type of beauty; it is amultiple-faceted quality framed bydifferent ethnic origins, aspirations, andexpectations that reflect the worldsintrinsic diversity.

With a portfolio of powerful,international brands, LOral enters the21st century by embracing diversity in its

global growth agenda. Group continues to make newacquisitions to cover the worlds variedcosmetic needs, and to undertake newsocially responsible initiatives in theinterests of sustainable development forall.


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Achievements.

LOral owns 18 research centresaround the world, in France, China

and the US. Has a strong research division, which

focuses on improving scientificknowledge of colour, skin, and hairand developing new and innovativeproducts.

One of the current projects involves

a pill to prevent grey hair. A total of 720.5m was spent on

cosmetic and dermatologicalresearch in 2012, with 613 patentsfiled.


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Achievements.

In November 2012, L'Oralinaugurated the largest factoryin the Jababeka Industrial Park,Cikarang, Indonesia, with a totalinvestment of US$100 million.

The production will be absorbed25 percent by domestic marketand the rest will be exported.

In 2010 significant growthoccurred at Indonesia with 61percent increase of unit sales or28 percent of net sales.
http://en.wikipedia.org/wiki/Cikaranghttp://en.wikipedia.org/wiki/Cikaranghttp://en.wikipedia.org/wiki/Cikaranghttp://en.wikipedia.org/wiki/Indonesiahttp://en.wikipedia.org/wiki/Indonesiahttp://en.wikipedia.org/wiki/Cikaranghttp://en.wikipedia.org/wiki/Cikarang


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Achievements.

LOral currently markets over 500brands and many thousands of

individual products in all sectors ofthe beauty business: hair color,permanents, hair styling, body andskin care, cleansers, makeup andfragrances.

On 17 March 2006, L'Oralpurchased cosmetics company The

Body Shop for 652.3 million. The Body Shop founded in 1976 by

Anita Roddick has 2,400 stores in 61

countries.
http://en.wikipedia.org/wiki/The_Body_Shophttp://en.wikipedia.org/wiki/The_Body_Shophttp://en.wikipedia.org/wiki/The_Body_Shophttp://en.wikipedia.org/wiki/The_Body_Shophttp://en.wikipedia.org/wiki/The_Body_Shop


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Achievements.

LOral has acquired KenyasInterconsumer Products Ltd,makers of Nice & Lovelybrands on 12th April 2013.

Kenyas most revered brandslike Nice & Lovely, QueenElizabeth, Clarion and Bouncy.

Deal is believed to be worthKsh 3billion ($35.3 million).

Its a great Kenyan story for aman who started the businessin Kariobangi and has nowjoined the billionaires club.


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Achievements.

2013; Ranked 25 in the worlds most powerfulbrands by Forbes Magazine.

2013; Ranked 3rd in the top 10 beauty brands(1st & 2nd being Olay and Avon respectively).

On July 31, 2012, LOral USA received the"Diversity and Inclusion" Award (DANDI) forits commitment and innovative action withregard to Diversities

April 2012.;LOral Canada received the BestDiversity Employers Awards in recognition oftheir employee training program thatpromotes the understanding of differences

and openness to others October 2012. LOral Mexico received the

Gender Equity Model Label for professionalgender equality from the Mexican Ministry ofWomen.


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Initiatives Across The World.

Citizen Day was inspired by thecelebration of LOrals 100th

anniversary in 2009 when 100community projects were initiatedacross the world and employeeswere encouraged to volunteer theirtime.

LOral has since committed tomobilizing its employees around the

world for one day every year. This year, more than 25,000employees in 60 countriesparticipated mainly during themonth of June.


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Initiatives Across The World.

In 1987 Bettencourt, togetherwith her husband and daughter,founded the BettencourtSchueller Foundation to supportand develop medical, culturaland humanitarian projects.

Liliane Bettencourt Prize forLife Sciences is an annual award

to a top European biomedicalresearcher under the age of 45.Winners receive 250,000 tosupport their work in the field oflife science.


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Some of LOral Brands.

l'oréal, world leader in beauty. entrepreneurship perspective

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