Case ID: 805086     Solution ID: 3419     Words: 1413 Price $ 45

LOreal and the Globalization of American Beauty Case Solution

Case Solution

Looks into L'Oreal's purchase of top U.S. make-up brands, comprising of Maybelline, Redken, and Kiehl's, and their graduation and internationalization.Assesses the L'Oreal journey, now the leading global cosmetics company, from where it initiated in France in 1907. The company stepped into the United States in 1953, and from 1990, grew at an impressive rate with the purchase of U.S. brands, which were turned around and then introduced globally. Emphasizes on Kiehl's--since 1851, aeccentric New York cosmetic brand--which L'Oreal purchased in 2000 and is now growing internationally. Demonstrates how L'Oreal built a portfolio of U.S. and European brands that are now traded internationally. Looks into the corporate planning and advertising challenges facing consumer products companies as they go global and how purchases could aid in the process of internationalization. 

Excel Calculations

Questions Covered

1. How did L’Oreal become the world’s largest beauty company? What was the role of acquisitions in the growth?

2. L’Oreal offers consumers worldwide “American” and “French” concepts of beauty. Are there any limits to the national beauty images it can globalize? 

3. What are the global opportunities for Kiehl’s? What are the limits, if any?

4. What challenges did they face in building a global beauty business? 

5. What specific capabilities did L’Oréal have (or develop) to become the world’s largest beauty company?