LOreal Global Brand, Local Knowledge Case Solution

Cosmetics, the Body Shop, and Galderma Laboratories were L’Oreal’s major divisions, with cosmetics capturing 93% of the revenue (2010). Consumer, Luxury, Professional Products and Active Cosmetics are its main operational divisions, categorized by the target audience, use, etc. In 1998, L’Oreal took a new approach to making the brand global, by not just providing localized products but by making them roll out globally (e.g. Garnier for Men). Here, ‘Geocosmetics’ researched on products and beauty trends around the world befitting regional needs. L’Oreal soon developed a portfolio catering to all price points and distribution channels and the ‘Masstige’ category was formed to offer luxury at lower price points (e.g. L’Oreal Paris).

L’Oreal’s advertising expenditure was the third largest (2009): 75% going to television, followed by print and billboards, but now shifting to digital marketing. ‘Fame by Association’ was another tactic, whereby celebrities, events, and website personalities were used to endorse the brand.