Chanel And L'oreal Competition Essay

932 words - 4 pages

The second direct competitor to Chanel is L'Oréal, the world's largest manufacturer of high-quality cosmetics, perfumes, and hair and skin care products. Although L'Oreal the company doesn't manufacture a perfume it owns the brand Lancôme that produces Tresor a perfume that rivals Chanel. In the chart below, it lists the US female fragrances brand share by value from the 2002 Tablebase data. The chart shows how the Lancôme perfume Tresor, Estee Lauder and Chanel are in relation to each other.

Manufacturer Brand % 1996 % 1997

Estee Lauder Pleasures 5.8 5.9
...view middle of the document...

In 1953 the company formed licensee Cosmair to distribute its products to US beauty salons. Cosmair helped them add on perfume and make-up to their inventory and eventually became L'Oreal USA in 2000. The company decided to go public in 1963 unlike its opposition Chanel who has remained privately owned. In 1965 they acquired the upscale French cosmetics maker Lancôme. Lancôme makes up the luxury division of L'Oreal, which also include brands like Ralph Lauren and Giorgio Armani. The Luxury Products Division develops prestigious brands sold in exclusive and selective outlets: department stores, perfumeries, travel retail outlets and the group's own boutiques. Its mission is to offer customers personalized advice and service. The division markets useful products that integrate the latest innovations, and whose high additional value displays the quality of L'Oréal's Research.
Lancôme's history is a somewhat different and more romantic than the beginnings of L'Oreal or Chanel. In 1935, while vacationing in the French countryside, Armand Petitjean happened upon a charming castle ruin- Le Chateau de Lancôme. He was inspired by the delicate, fragrant roses which grew among the weathered stones. The rose encapsulated the feminine beauty of a woman. M. Petitjean chose the rose as the symbol of his new company, Lancôme. He orchestrated Lancôme's first appearance with great skill. In 1935, he launched five new fragrances simultaneously, presenting them to the world at the June opening of the Universal Exhibition in Brussels. (www.factiva.com)
As for today, Lancôme's mission is to provide women around the world with the highest quality products and services that fulfill their quest and enthusiasm for beauty. The cornerstones of the brand are its four key values: caring, innovation, expertise and the "French touch." From its sumptuous fragrances to it high technology skincare and fashion-forward cosmetic lines, Lancôme is synonymous with elegance and chic French style. Lancôme delivers technologically advance skincare, body...

Other Papers Like Chanel And L'Oreal Competition

Young Love Vs Chanel Essay

2283 words - 10 pages Melissa Butler Dr. Mark Howell English 112 2/28/2016 Young Love vs Chanel No. 5 In today’s world we see advertisements such as billboards, benches or commercials on TV and almost everywhere else we go. Our society is constantly influenced by advertising. While enthusiastic people work hard to create their masterpiece of a commercial, most people try to avoid them due to the inconvenience of them interrupting their favorite TV show. Today

Loreal Case Study

4485 words - 18 pages positive brand image with Dutch consumers. 8. Dedication to their continuous research makes them the leader in the growing cosmetics industry despite the competition in the market. 9. Strong management team. 10. L'Oreal is the largest seller of hair care and beauty products globally and a market leader. 11. L’Oreal has the economies of scale in packaging and advertising. 12. L’Oreal’s advertising strategy also plays a major part to its

Stp Marketing Strategy Analysis

3679 words - 15 pages momentum. According to the data released by L'Oréal China in Shanghai on 31st March of 2015, L'Oréal China achieved 13th double-digit growth by rising 10.2% from a year earlier and sales reached 13.28 billion Yuan in 2013. Although the Chinese economy growth slows down, the sales of L'Oréal China remained to increase by 7.7% and achieved total sales of about 14.3 billion Yuan in 2014. Nowadays, L'Oréal is facing huge pressure of competition and

Zara Marketing Management

723 words - 3 pages Stradivarius Uniqlo United Colors of Benetton Zara will have a lot of competition specially with their direct competitors but they are the number one brand of low cost clothing. The majority of the direct competitors like Pull and Bear, Massimo Dutti, Bershka or Stradivarius belong to the same group Inditex, so that make it easier for Zara to be the number one brand in his field. The different brands from the list are direct

Giants in Cosmetics

1245 words - 5 pages bought their skin creams and mascaras from door-to-door sales representatives, not the shops where L'Oréal sells its brands. Cosmetics giant L'Oreal is trying to change the way Brazilian women buy makeup. WSJ's Christina Passariello reports from Rio De Janeiro. The French company won't use the direct-sales approach, but the company has adopted a strategy that takes a page from it: introducing personal beauty advisers at department stores

Gucci Group, N.V. Case

1748 words - 7 pages all become household names across the world through their strategic positioning. Currently, Hermes is considered as the “top of the line” luxury goods brand, with Chanel in a close second. Ferragamo is considered to be at the lower-end. For the sake of this case, we will focus on the middle tier, which consists of Prada, Louis Vuitton (LVMH), and Gucci. Firstly, Prada is much smaller relative to many of the big players in this industry, but it

: Business Environment

4176 words - 17 pages types of market structures 8 5.2 Analyze which market structure The Body Shop belongs to 9 5.3 Summary 10 6.Illustrate the way in which market forces shape organizational responses using examples 10 6.1 Identify the five forces and explain how they impact on competition 11 6.2 Illustrate the relationship between market forces and The Body Shop's responses 12 6.3 Summary 12 7.Judge how the business and cultural environments

Competitive Strategies

1673 words - 7 pages competitive advantage & attract customers Competitive advantage can be eroded easily (& often quickly) by rival’s actions z What is competition? When organizations battle for some desired object or outcome Customers, Market share, Survey rankings, needed resources, hyper competition A situation of intense and continually increasing levels of competition in today’s business environment Who are our competitors? 3 Perspectives Industry perspective

Carrol in China

3972 words - 16 pages Saint Laurent Louis Vuitton Louis Vuitton Chanel Chanel Upper Class Upper Class Dior Dior To complete the view of Caroll business let see now the positioning of the brand. We use a matrix to compare some brand on the customer’s view. We use 2 axes, the first one corresponds to the quality perceived of the product, and the second axe is based on the age the product should be for. On this matrix we can observe how perceived Skype and

Economics Assignment

1877 words - 8 pages consumers, each firm must create the differentiated for their product. For example, Lancôme and Chanel have made the big differentiation in cosmetic industry. With their quality and their own value, they have maintained the consumers’ demand in previous decades and until now (All Top 10 List, 2012). On the other hand, firms have some control over price called non-price competition. With the quality and the reasonable price, increasing profits is

Using Relevant Theories and Examples Outline the Arguments for and Against an Organization Adopting an Ethical Approach to Management

2533 words - 11 pages boost their confidence. As a result this could in turn lead to higher productivity from the workforce and ultimately lead to higher operating profits. A positive ethical approach to management could add to the competition for employment at such a firm. An ethical approach to management would also result in a lower labour turnover, because less employees would be leaving the organization if they felt they were being treated right, subsequently

Related Essays

Advertisement Essay

619 words - 3 pages among the youth. Advertising in fashion industry is very wide spread and they use many strategies to make products sell. It is essential for adverts to be eye-catching and stylish because they are in competition with all the other adverts for similar products. One of the ads that I never get tired of is Coco Chanel ads. I came across with Chanel advertisements a lot and all of them are very aye-catching and they hold something mysterious within

Marketing Report L’oreal

1869 words - 8 pages Summary and history The L'Oreal Group: headquartered in Clichy, France, is the world's largest cosmetics and beauty company. L’Oréal has developed activities in the field of cosmetics, concentrating on hair color, skin care, sun protection, make-up, perfumes and hair care. L’Oréal is active in the dermatological and pharmaceutical fields. L’Oréal is also the top Nan technology patent-holder in the United States. It’s run by CEO Susan Davisson

Loreal Case Study

5318 words - 22 pages market space or a blue ocean, thereby making the competition irrelevant. A strategy canvas identifies the key competing variables of the industry and attempts to create value by adjusting these criteria in order to create a form of 'uncontested market space' . In the case of L'Oreal Plenitude, U.S. market entry depends on maintaining the core elements of the product's high-tech nature, the emphasis on advertising plus promotion and the inclusion

Managing Capability Essay

3339 words - 14 pages the company and the applying models and as a result evaluating the competitors and the core competent area of the company. Furthermore, there are recommendations on how the L’Oreal Group can promote, develop and supervise its capabilities. About the company Eugene Schueller, a French chemist, established L'Oreal in 1909. Mr. Schueller established L'Oreal to expand his hair products operation. Later Mr. Schueller expanded his product range to