Topic > L'Oreal Case Study - 1020

L'Oréal 'because you're worth it!'HistoryIn 1907, Eugène Schueller, a young French chemist, developed an innovative formula for hair coloring. He called his improved hair dye Auréole. Thus begins the story of L'Oréal. Eugène Schueller formulated and manufactured his own products, which he then sold to Parisian hairdressers. In 1909, Schueller registered his company, the Société Française de Teintures Inoffensives pour Cheveux ("French Safe Hair Dye Company"), the original L'Oréal. The guiding principles of the company that would become L'Oréal were put in place from the beginning: research and innovation in the interest of beauty. In the early 20th century, Schueller provided financial support and held meetings for La Cagoule at L'Oréal headquarters. . La Cagoule was a violent French group with a fascist and anti-communist tendency. L'Oréal hired several members of the group as managers after World War II. In 1920, the small company employed three chemists. In 1950 the research groups numbered 100 people; that number reached 1,000 in 1984 and today is nearly 2,000. L'Oréal started in the hair color business, but the company soon branched into other cleaning and beauty products. L'Oréal today markets over 500 brands and many thousands of individual products across all sectors of the beauty business: hair dyes, perms, styling aids, body and skin care, cleansers and fragrances. They are found in all distribution channels, from hairdressing salons and perfumeries to hypermarkets and supermarkets, beauty/health product outlets, pharmacies and direct mail. L'Oréal has five research and development centers around the world: two in France: Aulnay and Chevilly; one in the United States: Clark, New Jersey; one in Japan: Kawasaki, Kanagawa Prefecture; and in 2005 one was founded in China, in Shanghai. L'Oréal purchased Synthélabo in 1973 to pursue its pharmaceutical ambitions. Synthélabo merged with Sanofi in 1999 to become Sanofi-Synthélabo. Sanofi-Synthélabo merged with Aventis in 2004 to become Sanofi-Aventis. On 17 March 2006 L'Oréal made an agreed £652 million acquisition of ethical cosmetics company The Body Shop. The company recently faced discrimination lawsuits in France related to the hiring of spokespeople. In the UK L'Oreal has faced widespread condemnation from OFCOM over the veracity of its advertising and marketing campaigns regarding the product performance of its mascara brand. Multiple video parodies of their advertising campaigns have spoofed their products and can be viewed on You Tube - search L'Unreal for links to content. The story of L'Oreals has just been exposed in a bestseller by Monica Waitzfelder published in French as 'L'Oréal a pris ma maison' and English as 'L'Oreal stole my house''.