Analyzing L’Oréal Paris: Managing Quality and Introducing New Products

Student ID Number
Programme Title Marketing Ext. Degree
Module Title Understanding Operations, Logistics and Supply Chain Management
Module Code (listed on Moodle
and in LTAFP)
Module Convenor
Coursework Title L’Oreal Paris Report
Word Count 2645 Date Submitted

L`Oreal Paris Report
Overview
The aim of this report was to analyse the activity of the largest beauty company in the world
–L’Oréal Paris in report with its consumers, products and services. The main two areas of this
report that will be developed are managing quality and introducing a new product.
The report will also explain the impact L’Oréal Paris has to the global beauty industry
market, the influence of the new innovations the company is planning to implement in the
future and the relation the brand is having with its consumers.
In the past decades, a beauty industry market had a considerable percentage rise in incomes,
as the demand on the skin care products, perfumes, cosmetics and hair care products are
predominantly used by the consumers. By 2022, the forecast of global cosmetic market is
expecting to grow at $429.8 billion and to register a CAGR of 4.3% (Statista. 2019).
L’Oréal is the world leader in the beauty industry, being present in 130 countries on 5
continents. In respect for their diversity, the company vision is to provide the best in
cosmetics innovation for women and men around the world (L’Oréal, 2019).

Figur
e 1. L’Oréal Market Share Worldwide in 2016 by region Source: Statista 2019
Figure 1 shows in percentage the market share of L’Oréal company in terms of region during
the last years. An increase of 20.2% was made only in Western Europe, followed by North
America of 14% and Africa and Middle East of 13% in 2016.
L’Oréal was founded in 1909 and by 2017 become the leader of personal care brand in the
world with a brand value of 23.89 billion U.S. dollars (Statista, 2019)

Figure 2. Brand Value of the Leading Personal Care Brands worldwide in 2019
Source: Statista 2019
Figure 2 explains the growth of the top personal care brands in the world, in million U.S.
dollars. Statista`s graph shows that L’Oréal is the top leading beauty industry company in the
world in 2019, with 28.376 million U.S. dollars, compare to another companies, like Procter
& Gamble Co., Nivea or Dove.
L’Oréal concept is very simple and with impact for its clients: “Beauty is a language. Beauty
is universal. Beauty is a science. Beauty is a commitment and L’Oréal offer beauty for all.”
The meaning behind this concept is L’Oréal promise that will offer to its clients worldwide
the best of cosmetics innovation in terms of quality, efficacy and safety. At the same time, is
the promise that they will use only the products designated for its client’s well-being, to
support the local communities and to preserve the beauty of the planet. (L’Oréal, 2019).
Many author also state that all the leader posses strong attributes i.e. vision, trust selflessness
and commitment. Therefore, It is quite necessary for the select a right person who assist to
take better decision and also reach a business towards further level of a success.
Being a responsible company with respect for its clients, L’Oréal is controlling 85.9 % of
manufacturing production, by using a large integrated industrial model and its own plants,