L’Oreal’s Customer- Based Brand Equity (CBBE) Model
customer-Based Brand Equity is defined as the differential effect that brand knowledge has on consumer response to the marketing of that brand. The Customer-Based Brand Equity Model approaches brand equity from the perspective of the consumer – whether this be an individual or an organization. Understanding the needs and wants of consumers and organizations and devising products and campaigns to satisfy them are at the heart of successful marketing. BRAND SALIENCE:
Created in France, L’Oréal Paris brings the sophistication and elegance derived from its French heritage to women and men all over the world. L’Oréal Paris offers leading-edge products that out-perform the competition to people who care more about the way they look. Our passion for innovation, performance, style and a sense of premium is encapsulated in the ‘because you’re worth it’ philosophy. Our core values are supported by our strong investment in scientific research and technology. Over a third of the L’Oréal Group’s total turnover in this country is generated by L’Oréal Paris, making it the company’s largest division in the UK. Today there are strongly established L’Oréal Paris brands across all of the key areas of the beauty market, including the Plenitude skincare range, Elvive haircare and Studio Line styling products. Other brands include L’Oréal Paris Colour Cosmetics, Elnett, Rcital, Excellence, Fria, Perfect Blonde, Open, Casting and L’Oréal Kids. BRAND PERFORMANCE:
Branding Strategy of L’Oreal has enabled the company to spread its’ business not only in Europe but also in Asia and Latin America. In the year 2005, the Brand L’Oreal was ranked first among all the cosmetics companies of the world. L’Oreal Branding Strategy has achieved success throughout the world. Over the years, the company is successfully producing and selling different cosmetic products, haircare and skincare products in almost 150 countries of the world. This has been possible because of the well established Brand Name and Brand Image of L’Oreal. L’Oreal has been successful in generating a worldwide Brand Identity only because of the company’s powerful and efficient Branding Strategy. This successful Global Branding Strategy of L’Oreal helped the company to earn significant levels of revenue in the past years In the year 2005, L’Oreal was valued as a $18.89 billion company. In 2004, total value of the L’Oreal Brand was $5902 million. In 2003, the company recorded a value of $5600 million. In fact, from the year 1989, the Brand L’Oreal experienced continuous growth. The company recorded double digit growth rate in consecutive years and in the year 2005, it became the largest cosmetic company of the world. BRAND IMAGERY:
L’Oréal has been one of the most reputed brands in the cosmetics field. The brand has made its presence felt in more than 100 countries, thanks to its numerous acquisitions worldwide. With several brands in its kitty, L’Oréal has carved a niche for itself with its unique strategies and stands out from the other cosmetics brands. The L’Oréal group develops several important communication campaigns every year that underline the ability and the growth of the group. It is omnipresent across several media channels and the constant presence enables the brand to retain its reigning position in the market despite stiff competition from numerous cosmetic brandThe commercial communication of the group is made at a world level. The group proposes the same products and leans on the same advertising campaigns. In that case, visuals are the same, the text identical, the slogan is unchanged, and the ads are only translated with respect to countries. However, in spite of its global presence, the group realized that it could not sell the same product to all its consumers. The group knew how to diversify towards American, Asian or Latin brands. BRAND JUDGEMENT
Few of the women in the admiring crowd realize that the trendy...
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