L'Oréal, the world's largest cosmetics and beauty company, was founded in 1907 by the French chemist, Eugene Schueller. After a little over a century of steady growth, L'Oréal has jumped from being a small family business to become the world’s leader in the cosmetics industry. Today, the L'Oréal group has regions in more than 150 countries in the world that are home to 283 branches, more than 100 agents, 50,491 employees, 42 factories, and more than 500 high-quality and popular brands of cosmetics. Their "global or nothing" strategy allows L'Oréal to take market segmenting even further by custom developing and marketing products to meet the specific demands of any given country or region.
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Although the global economy is so weak, L'Oréal still continues to grow fast in China. The reason is that L'Oréal always updates its marketing intelligences through maketing research. This is really a good case study that we can learn from, especially from L'Oréal’s successful experiences in China. Its next marketing strategy is to conduct a big push into smaller cities by developing new product lines and utilizing social media to extend its distribution throughout China. If they are to be successful in this, it is significant for L'Oréal to realize the marketing needs, not only by understanding culture differences, but also using local social networks to promote and service its customers. This proves that marketing research is the key for L'Oréal to surpass its competitors and lead the market over the course of time.
1. The potential markets outside the largest cities in China. Sales in China will be spearheaded by a continued push into so-called tier 3 cities or tier 4 cities – outside the largest conurbations. Residents in smaller cities have purchasing power, but there are limited choices of international products. Fewer competitors have bigger potential to bring more profits.
2. Aimed at the 220 million internet users
In China, digital marketing is very important. There are more than 220 million Chinese consumers currently using the internet, a mobile phone or a laptop daily. L'Oreal will, therefore, reach