L'Oreal & The Body Shop, Industry Analysis

OPERATIONAL MARKETING: L'OREAL & THE BODY SHOP

L'Oreal is one of the largest cosmetics companies in the world. It produces and markets a range of make-up, perfume, hair and skin care products. The company's products are sold under well-known brands such as L'Oreal Paris, Garnier, Maybelline, SoftSheen Carson, CCB Paris, L'Oreal Professionel, Kerastase, and Redken.

It markets 19 global brands through three divisions: cosmetics (comprising of skincare, haircare, make-up, hair colorants, perfumes and other products), The Body Shop (it has become a part of L'Oreal after its acquisition in March 2006) and dermatology (comprising of drugs for acne treatment and others).

The cosmetics division of L'Oreal operates through four segments: professional products, consumer products, luxury products and active cosmetics. L'Oreal has a diversified geographic presence. The company currently has operations in over 130 countries across five continents.

The different brands associated to the four divisions of l'Orйal are the following:

- Professional products

- Consumer products

- Luxury products

- Active cosmetics

On 17 March 2006, L'Orйal made a Ј652 million agreed takeover of ethical cosmetics company The Body Shop. There was a huge controversy surrounding claims that L'Oreal continues to test on animals, which contradicts The Body Shop's core value of Against Animal Testing. L'Oreal states the company has not tested on animals since 1989.

This acquisition has been an important step in the L'Orйal Corporate strategy since The Body Shop has emphasized its support for a wide range of issues around the globe. Its slogans included: Against Animal Testing, Support Community Trade, Activate Self Esteem, Defend Human Rights, and Protect Our Planet.

The Body Shop International plc, known as The Body Shop, has over 2,000 stores in more than 50 countries. Following O Boticario, brazilian company, The Body Shop is the second largest cosmetic franchise in the world. The company is known for its vegetable-based products ranging from Body Butter, Peppermint Foot Lotion, and Hemp.

Source: Official Body Shop Main Site: www.thebodyshop.com/bodyshop/

L'Orйal Official Website : www.loreal.com

I - Mission, Objectives & Statement of Values

The company's commitments and goals are set forth explicitly in the text of L'Orйal's Mission and statement of values which reads as follows:

1) Mission

The mission is an overriding purpose in line with the values or expectations of stakeholders.

a) Mission of l'Orйal: "Cosmetics Are Part Of The Universal Quest For Beauty".

As a form of self expression, they are personal in the fullest sense - just as they are part of social life, serving a daily need for self confidence and contact with others.

At L'Orйal, we are fully committed to meeting that need, putting all our expertise and research resources to work for the well-being of men and women, in all their diversity, around the world.

That commitment is what gives meaning to our business.

L'Orйal lauds « The right to be beautiful day after day: L'Orйal strives to make this a reality within the reach of every woman and every man. This ambition is reflected in a brand portfolio unequalled anywhere in the world. Since its creation in 1909, the group has always considered this mission of prime importance.

The thousands of men and women who have built up the group across the world have made this their personal mission statement.

They use their intelligence and creativity, their innovative ability and all their expertise to further the cause of beauty the world over.

As well as meeting current consumer aspirations, L'Orйal anticipates their future expectations, being, as always, determined to promote an approach to beauty that is fun, affordable, fulfilling, genuine and generous.

None of this would be possible without L'Orйal's deep respect for human beings of all types and nationalities, and without its genuine commitment to a sustainable environment. Strengthened by these values, and convinced that the quest for beauty has always been a major challenge for women and men, L'Orйal's teams continue daily to push forward the frontiers of their profession. »

(Source : http://www.loreal.com/_en/_ww/index.aspx ).

b) Mission of The body shop:

The Body Shop International plc is a global manufacturer and retailer of naturally inspired, ethically produced beauty and cosmetics products. Founded in the UK in 1976 by Dame Anita Roddick, we now have over 2,100 stores in 55 countries, with a range of over 1,200 products, all animal cruelty free, and many with fairly traded natural ingredients.

We were the first international cosmetics brand to be awarded the Humane Cosmetics Standard for our Against Animal Testing policy. And we have our own fair trade programme called Community Trade, making us the only cosmetics company with such an extensive commitment to trading fairly. Community Trade now works with 31 suppliers in 24 countries, providing over 15,000 people across the globe with essential income to build their futures.

We also have our own charity, The Body Shop Foundation. Launched in 1990 (registered charity no. 802757) we give financial support to pioneering, frontline organisations that otherwise have little hope of conventional funding. The Foundation's focus is to assist those working to achieve progress in the areas of human and civil rights, environmental and animal protection.

All our products are made with a love of life, respect for the world we live in, a spirit of individuality, and commitment to trading fairly. In a word, passion.

We believe that every woman has the right to feel fabulous, so we put our all into finding the highest quality natural ingredients, ethically and responsibly grown and bought, and turning them into innovative products, honestly marketed, and priced so that everyone can