L’Oreal Group, the 17-billion euros global leader in cosmetics, is charting out a long-term growth strategy for its wholly-owned subsidiary L?Oreal India. To start with, L?Oreal India is planning to extend its distribution network and product portfolio to sustain its competitive edge in the beauty business.
To take on rivals like Hindustan Unilever Ltd?s Lakme, the company is planning to invest in mass media advertising as well as ground events to woo new consumers. Incidentally, L?Oreal India has just appointed cine star Sonam Kapoor as its new brand ambassador for the Indian markets.
On the company?s growth plan, Dinesh Dayal, chief operating officer, L?oreal India, said, ?Our strategy is to recruit more faithful customers to our brands through innovative products and categories. Our objective is that each of our brands attains and maintains their leadership positions in each of the segments.?
At present, L?Oreal?s major brands include Garnier, L?Oreal Paris and Maybelline in the consumer products sector.
According to Dayal, the company has lined up a host of new launches in January 2009. ?We have combined our insights on Indian consumers and their needs with the force of our global R&D,? he said. The company files more than 600 patents each year internationally, he noted. L?Oreal India?s launches in 2009 include Ralph Lauren?s fragrance for women and Lancomes?s Oscillation. As part of its growth strategy, L?Oreal will be increasing its distribution in a phased manner, in line with demand. ?Advertising is a core component in demonstrating the quality and performance of our products and we will continue to invest in line with our growing business,? said Dayal.
He said that the company has appointed Sonam Kapoor as an additional L?Oreal Paris spokesperson for the Indian Market alone. ?She will complement our international brand ambassador Aishwarya Rai,? he explained.
Meanwhile, L?Oreal?s arch rival, HUL, has announced that its board has approved the licensing of Lakme and Lever Ayush brands to a separate subsidiary company, Lakme Lever Private Limited. This company will evaluate options towards developing a uniquely different, new business model for this opportunity, with singularity of purpose and dedicated focus.
?With increasing competition, the branded cosmetics and skincare sector in India will witness a pitched battle for market share in the next few months,? said a Mumbai-based industry analyst.
Blueprint for growth
• L?Oreal is planning to invest in mass media advt and ground events
• It has appointed Sonam Kapoor as its brand ambassador for Indian markets
• The co?s major brands include Garnier, L?Oreal Paris and Maybelline in the consumer products sector