Loreal Case Study Solution

Case | HBS Case Collection | June 2011 (Revised May 2012)

L'Oréal: Global Brand, Local Knowledge

Rebecca M. Henderson and Ryan Johnson

Worldwide, and in the U.S. marketplace in particular, the French cachet of L'Oréal was one of its most powerful marketing tools. However, with the opening up of emerging markets, L'Oréal had to cater to a diverse customer base: an aging population in the West, ethnic groups, aspiring and younger customers in the East, emerging markets, and growing interest in health and beauty care among men all over the world. Employing both traditional and innovative marketing techniques, L'Oréal worked to double its customer base to two billion by 2020 and increase to half from a third its share of sales from emerging markets.

Keywords: Globalization; Brands and Branding; Marketing Communications; Change Management; Sales; Emerging Markets; Segmentation; Innovation and Invention; Beauty and Cosmetics Industry; France; United States;

Client Background:

  • L’Oréal, the world’s largest cosmetics company, purchased the La Roche-Posay skincare line in 2007. Effaclar, a higher-end product targeting young women with acne, competed directly with the aggressively marketed, and more recognized brand, Proactiv.

Client Challenge:

  • La Roche-Posay needed to jump start stagnant Effaclar sales in the U.S. by: increasing audience awareness of the La Roche-Posay brand, growing direct-to-consumer sales and maximizing marketing return on investment.

Our Strategy:

  • Highlight the brand’s scientific heritage and its unique positioning as the #1 recommended dermatological brand in Europe.

See our strategy & results>

Our Solution:

  • Create :120 and :60 spots to educate consumers on the product’s high quality and value.
  • Develop a microsite to offer consumers a more in-depth look at Effaclar with the ability to purchase the product directly from La Roche-Posay.

Campaign Results:

  • As a result of our calculated multi-device strategy, online lead-to-purchase conversion rose by 35% while overall retail sales-per-store increased by 20%.

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