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L'Oréal BCG Matrix Analysis

L'Oréal was founded in 1909 by Eugène Schueller, a young chemist, and has grown to become the world's largest cosmetics company. It focuses on hair color, skin care, sun protection, makeup, and perfumes. The Boston Consulting Group's product portfolio matrix (BCG matrix) is used to evaluate a company's products based on their market share and market growth rate. For L'Oréal, its luxury brands fall under "question marks" due to low market share but high growth. L'Oréal shampoo is a "star" with high market share and growth. Hair color is a "cash cow" with low growth but high share.

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Roshan Gyawali
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928 views3 pages

L'Oréal BCG Matrix Analysis

L'Oréal was founded in 1909 by Eugène Schueller, a young chemist, and has grown to become the world's largest cosmetics company. It focuses on hair color, skin care, sun protection, makeup, and perfumes. The Boston Consulting Group's product portfolio matrix (BCG matrix) is used to evaluate a company's products based on their market share and market growth rate. For L'Oréal, its luxury brands fall under "question marks" due to low market share but high growth. L'Oréal shampoo is a "star" with high market share and growth. Hair color is a "cash cow" with low growth but high share.

Uploaded by

Roshan Gyawali
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
  • Brand Introduction
  • BCG Matrix of L'Oreal

BRAND INTRODUCTION

OF
L'Oréal

In 1909, Eugène Schueller, a young chemist with an


entrepreneurial spirit, founded the company that was to become
the L'Oréal [Link] is the worlds largest cosmetic company and
has develop activities in the field concentrating on hair colour,
skin care, sun protection ,make up,perfumes etc.

ABOUT BCG(Boston consulting group)- The Boston Consulting


group's product portfolio matrix (BCG matrix) is designed to help with long-
term strategic planning, to help a business consider growth opportunities by
reviewing its portfolio of products to decide where to invest, to discontinue
or develop products. The BCG group measures the activity of the
organization mainly focusing on market share and market growth.

 MARKET SHARE-Market share is the portion of the total sales covered


by the organization in the market or the percent of the total sales in an
industry generated by company.
 MARKET GROWTH- The rise in the demand for the product or service
in the market.
BCG MATRIX OF LOREAL

Question Mark( L’Oréal LuxeL’);Oréal Luxe is in the


segment of ‘Question Marks’ of the BCG matrix.
Question Mark means that the company has a low market
share and highgrowth. Question marks are products which
may give high returns but at the sametime may also flop
and may have to be taken out of the market.
Stars(Loreal Shampoo): Loreal shampoo is in the
segment of STARS of BCG matrix as it is the most
demanded product of loreal. It also have the high
market rate and high market shares as well.
Cashcow( Loreal Hair color);The hair color of loreal
falls under the cashcows because the product Has low
growth rate but a high market [Link] is relatively
high chance of the product to be dogs from cashcows.
The haircolor of lorreal was named stars before 2
years.
DOGS(Cleansing water):The high cost and low quality
of cleansing water of lorreal makes it the dogs of the
[Link] doesnot have potential to to make a
strong comeback in the market because they are cash
straps.
BCG MATRIX
Question marks(High STARS(High market
market growh low market share and high growh
share) rate)

Cashcows Dogs
( Low market growth rate and (Low market growth rate
high market share) and low market share)

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