L'OREAL

L'Oreal



L'Oreal

Case Study: L'Oreal

Due to the development of new technology and huge existing and potential demands in the home market and a global market, companies like L'Oreal needs to identify these value opportunities and develop new products to meet those demands.

There are three main parts in this report; in the first place, the author is talking about the importance of developing new products for a company like L'Oreal, in terms of Customers, Competition, Culture and the Product Life Cycle. All of these are key issues to consider when launching new products.

As the globalization of markets continues at a rapid pace, L'Oreal has to face the challenge of staying current with the development of new products. Standardization or adaptation is an important issue in globalization. Therefore secondly, the author discuss the degree of standardization and adaptation that L'Oreal needs to follow in relation to the potential risks of launching up to 2,000 products a year into global markets. There are three important issues which will be discussed in this part, Costs and Benefits, Market-Entry Timing, and Marketing Strategy.

In addition, in the third part, the author analyse how L'Oreal follows a new product development screening process. The six stages involved in N.P.D will be talked about in this part, especially the Idea Screening process to show how L'Oreal's new products can offer a clear benefit and prove itself acceptable in use.

L'Oréal HR

L'Oreal Ltd is a subsidiary of the French based company L'Oreal SA and specialises in make-up, skin care, hair care, dermatology and fragrances. Its Standard Industrial Classification (SIC) is 24520, Manufacture of perfumes and toilet preparations and its main brands include Garnier, Inneov and kerastase.

The company is owned by its private shareholders. The Bettencourt Family own a stake of 27.5% of the company's share capital with a further 26.4% being owned by leading Swiss food manufacturer Nestle.

One of their key manufacturing premises is in South Wales and here they distribute their finished products to over 30 countries worldwide.

L'Oreal claims they provide their customers with “the right to be beautiful day after day”, that they “strive for excellence”, “perfection is their goal”, they have “a passion for adventure”, aim to achieve “enrichment through diversity”, they “value individual talent” and have great pride in their thorough research.

The company also boasts of their sustainable business model, they own 19 global brands within their sector of industry and have achieved £11.3 billion consolidated sales in 2006.

The HR department in L'Oréal seems to have evolved a new way of recruiting future managers. Instead of being a disparate activity which is not fully in sync with organizational objectives, the e-Strat challenge has the potential to truly synergize recruitment with the overall organizational strategy.

To sum up:

The e-Strat Challenge is an innovative approach to recruiting fresh talent for an innovative company

1. For a global company which has presence in over 130 countries in an industry where local trends dictate how the business prospers, the web-based game is the best tool to reach ...