The implementation strategy of L’Oreal in the Indian market

Abstract

L’Oreal is one of the best known firm in France, the brand recognition is huge. L’Oreal, with its experience of European market and consumers, was able to become the number one cosmetics firm in Europe and even worldwide. The firm has a good brand image and a good understanding of consumers’ needs and expectations which allows it to lead the market. But how can L’Oreal become leader in a foreign market like India where the brand image is to be reinforced? What does L’Oreal need to do to understand a new market where beauty standards and beauty habits are very different? We thought it was interesting to study the implementation strategy of L’Oreal in the Indian market. We wanted to understand how L’Oreal achieved to enter this market. It is interesting to study because L’Oreal came late to the market, in comparison to its foreigner competitors such as Unilever or Procter and Gamble. As two French students, we though this report was the opportunity to analyze how a French firm could enter the Indian market: what the firm has done, why it was a success or not, and what it still needs to be done to improve market penetration of L’Oreal in India. The first step will be to understand the firm globally, to know the forces that the firm will have at its disposal, and to know the weaknesses of L’Oreal. Then we will analyze the Indian market, to know what kind of specificities L’Oreal has to deal with, and how it should adapt. We will also analyze the competitors of L’Oreal in India. We would like to focus our analysis on two specific subjects: the first one would be the shampoo market for women. This market was at first difficult to enter for L’Oreal, we want to understand why and how the firm overcame this hurdle. The second market we would like to analyze is the male market, this market has a huge potential in India. This is why L’Oreal strategy needs to focus on it. The last part of our work will be to give some recommendations to L’Oreal to reinforce and improve its market position in India. We will focus on points that we think are strategic to improve and other that represent great strengths the firms needs to continue capitalize on. And at last we will underline the challenges L’Oreal still has to face and its long term objectives.