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LOrea Company - Essay Example

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L’Oreal is a giant French company in the cosmetics industry. It was established in 1907 by the entrepreneur Eugene Schueller. L’Oreal has a number of brands under the umbrella brand catering to different consumer groups ranging from low income groups to premium segments. …
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LOrea Company

Download file to see previous pages... L’Oreal is renowned for its overseas expansion processes and continues to expand its operations in various countries across the world. L’Oreal is one of the largest players in the cosmetics industry and focuses extensively on increasing their market share and profitability by capturing a heterogeneous variety of markets all across the globe. The global expansion processes should be categorised effectively by proper market research to understand the feasibility of launching different products according to the market demands. From the analysis of host markets’ selection criteria, it can be concluded that the company can enjoy a premium product market in the developed countries such as USA and UK. The buying behaviour of most customers of cosmetic products in these two markets is characterised by luxurious and high-end beauty products. The Asia-Pacific market is also developing, where the company can penetrate through products of wide price ranges as the target customers in this market are from different income levels and have different buying behaviours and lifestyles. From the macro environment analysis of host markets it can be concluded that the political and economic scenario of developed markets such as USA and UK are favourable for their business whereas mainly the political scenario in developing countries such as India and China are less favourable for foreign player entrants in these market. ...Download file to see next pagesRead More
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