L'oreal and its adaption strategies for different markets.

1. Though beauty lies in the heart,
but it does matters to appear on face…

3. Maslow’s Hierarchy of needs: West and Asia

8.  China cosmetic market 40 years back
 Current Scenario in china
 Growth Rate of cosmetic market : 20 to 25
% per year
 The total current value of China's beauty
and cosmetics market was between 3.9
and 4.3 billions euros in 2005
 Target Consumers: women around 20/35
years old

9. Culture variables of China
 Private(China) vs Public Circles(West)
 Language : Subtle and indirect
 Perception: Symbolic value of products
 Motivation : Ownership vs Replenishment
 Learning and Memory: University Special Classes
 Age: Too Young
 Self Concept: Japanese Influence
 Gender roles: soft makeup
 Attitude towards change: Effective salespersons
 Purchase: Not so expert advice
 Country-product image: Label concept

10. Hofstede’s Cultural Dimension
France Vs China

12. Japan’s Scenario
 In 2003, the cosmetic market in Japan was 17 million
euros.
 Japanese companies held 70 percent of the market
with leading 5 companies like shiseido, pola, kosa,
koa, kanebo accounting for 49% of the sales.

13. The cultural variables
 Space- entering into the private closed circles by the
European who tend to socialize with larger grouper
was a challenge.
 Language-European people tend to direct frank,
straightforward in their communication, while
Japanese people generally prefer an indirect, subtle,
roundabout language.

14. Influence of Culture
 Perception-in japan, blue is associated with high
quality, red with happiness and purple with
expensive. One of the Japanese girl said “it is better
to look white.” and “it is more elegant.”
 Motivation- according to the Japanese girls
interviewed they said that the make-up helped them
feel confident about themselves. For them buying
make up was more about quality than brand.

15.  Age- In japan- younger women use more make-up
than older woman. According to her girls start to
make-up earlier and earlier.
 Self- concept- Japanese girls used make-up more and
more because they were afraid of the opinion of the
people after seeing them without make-up. Japanese
girls are perceived to have different skins as
compared to other Asians.
 Group influence-Due to peer influence more girls
used make up on daily basis.

16.  Attitude toward change- Japanese people want
newer products all the time, the average life cycle of
a product is 6 months for them.
 Purchase- Japanese people want a lot of information
before buying any cosmetic products as they are
experts in area.
 Country image of the product- Japanese people
don’t like products from any other country. Even if
they are from other Asian countries they reject them
outright. So L'Oreal japan was introduced.

17. Hofstede’s Cultural Dimension
France Vs Japan

19. Perception:
• South Korean women preferred very light pink or beige colours.
• South Korean people prefer descriptive advertisements.
Age:
• According to South Korean girls interviewed, young generation
prefers natural make up which was not the case earlier.
• Earlier their mother’s used more colours but now make-up is
more natural and it doesn't have to be more visible.
Self concept:
• Korean girls generally think, and are considered, as one of the
most beautiful girls in Asia. They think they are very special.

20. Group influence:
• In Korea, make up is well seen in the society as
long as it is not too much and looks natural.
Country product image:
• Korean people prefer products made in France and US
because they feel confident worth it.
• South Korean girls said that they prefer using famous
brands when they don’t know a product as,
“South Korea is not popular for brands”.

21. Hofstede’s Cultural Dimension
France vs. South Korea

23. Adaptation Strategy in Asian Markets
 Product acceptability in particular Asian Market
 Selling features and brand-name decisions
 Labeling requirements , packaging and repackaging
needs
 Service needs
 The effect of culture on product decisions
 Organization of tests and surveys

24. L'Oréal strategy in China
 Acquisition of local brands to adapt to local market.
 Opened R&D facility in Pudong
 Purchase of two production facilities and Training Development Centre
 Setting up of Local management and marketing center
 Tie up with local models as brand ambassador
 Product- oriented advertisement

25. L'Oréal strategy in Japan
 L’Oreal put Sun Protection Factor in its primary cosmetic products to be
protected from sun.
 L’Oreal packaged cosmetic products in small, simple, ‘Zen’, light coloured
 L’Oreal focus on Selective marketing than Mass Marketing
 L’Oreal trained salesperson because Japanese people are expert in
cosmetics

26. L'Oréal strategy in South Korea
 L’Oreal changed its tagline to ‘You are worth it’
 Globalization of business
 Export of local beauty related phenomenon
 Focus on skincare products
 Acquisition of Clarisonic vibrating cleansing device
 Developed a Pure Mineral Fresh Glow BB Cream for Korean consumers

27. The influence of culture on purchase aspects
of the consumer behaviour
 Language
 Power distance
 Uncertainty avoidance
 Individualism versus collectivism
 Neutral versus affective
 Specific versus diffuse

28. So the elements of culture influence the consumer behavior
Because :
1) They change the way of analyzing a situation
2) Reacting to it
3) Behaving in general
That’s why consumer behavior aspects will be analyzed and
used by the firms in order to create and implement the most
profitable strategy

30. Credits:
KASHYAP SHAH
K.SRIRAM
VINITA GOSWAMI
VRINDA JAIN
ANUBHUTI GUPTA
MANISHA NANDAL
MANTHAN JANI