LOreal Consultancy Report Essay Example | Topics and Well Written Essays - 2500 words

LOreal Consultancy Report - Essay ExampleFollowing in part four the report leave alone identify organizations and alliances, what impact they may have on the industry and on the competitive position of LOreal. Finally, I determine what strategic options be the most appreciate to this organization to ensure its success in the next five years.The sales of cosmetics and toiletries is on the rise after it slowed down globally in 2004, the world market place was valued at $253 billion in 2005. With a positive growth after sentimental retrieval from SARS scares and the war in Iraq (GCI, 2006), with strong cosmetic sales in Latin America and eastern Europe, peaking in Western Europe the largest market. According to indications there was a 4% growth in 2004, an fit in to the Global Cosmetic Industry Magazine the Euromonitor International forecast of a possible 20% crumb be obtained if current key trends are followed.Dividing the world cosmetic market in two sections, the grow and the developing markets, it is possible to show where sales are peaking, and where there are nonetheless opportunity for expansion. The spring up markets can this be seen as Western Europe, Asia Pacific, North America and Latin America as this are where the lion share of the market currently lies. Many of the consumers in this mature market demand more than sophisticated products and due the amount of competition product prices needs to be reduced if a connection wants to stay competitive. The one market in this section that shows promise are China and most of the senior high school profile players are go in this new market, such as Este Lauder and P&G, with retailers including Sephora and Sa Sa, and direct sellers Avon, Alticor, bloody shame Kay and New Skin (GCI, 2006).Developing markets can be seen as Venezuela, Vietnam, New Zealand, Australia, South Africa and Russia. In 2003 Vietnam showed a 19% growth in cosmetic sales even though demand are still concentrated in the urban ar eas, offering ample opportunity to expand. The South African market showed a healthy growth as consumers started to buy high margin multi-functional products. With more black South Africans entering the middle income group with the governments aggressive affirmative action policy,