Mergers, Acquisitions and Takeovers Case Study

Tapping Emerging Markets through Acquisitions:A Right Move by L’Oreal?

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Abstract:
France-based, L'Oreal, achieved sales of 12.9 billion euros in September 2008. But the performance fell short of global market growth expectations. North America and Western Europe were the key markets for L'Oreal which contributed 72% of its total sales. Though L'Oreal remained the number two world cosmetic giant, the company was not able to close the gap with its arch-rival P&G's performance. L'Oreal began to shift its focus on natural, organic, and green business to become ethical globally. L'Oreal had been a trendsetter and earned the trust of consumers', especially in the colour cosmetics, skin and hair care segments, which accounted for 84% of the company's revenue. The case details L'Oreal's strong financial position, its long-term aim to sustain its growth, integrating newly acquired brands and tap new market opportunities through acquisitions.

Pedagogical Objectives:

• To the global expansion strategies of L'Oreal.
• To strategies to combat market saturation.
• To organic vs inorganic growth.
• To emerging markets and business environment.

Keywords : L'Oreal, Organic growth, Inorganic growth, Global expansion strategies, Product portfolio, Cosmetics and skin care, Market saturation, Expansion strategies, New product development, Consumer preferences, Maybelline, The Body Shop

Contents : 
L’Oreal – An Overview
Acquisition of L’Oreal in various Markets
Different Business Segments Share of L’Oreal
Contribution of each region in terms of % share
L’Oreal – In Emerging Markets
Top Competitors in World Cosmetic Markets
Consolidated Sales and Operating Profit of L’Oreal