L'Oreal is a world leader in the cosmetics market, with products in nearly every category. The company markets in nearly all types of retail outlets. The group's core product area is its haircare line (including L'Oreal, Garnier and Dop), which accounts for 51.6 percent of managed sales. The perfume and beauty division (including Lancome, Armani and Paloma Picasso) contributed 25.5 percent to sales in 1994 while cosmetics (Dercos, Vichy, Roche Posay) accounted for 8.4 percent of 1994 sales. This research examines the critical role of the field sales manager in the L'Oreal organization, the various tasks that the field manager must perform, and the role that the field sales manager plays in the company's overall success.
L'Oreal has adopted a strategic orientation that is significantly different from its competitors in the health and beauty industry. The same technology and chemical innovations that are used to introduce high-end products are translated to lower-priced products, as well. In this way, the company introduced Niosome face cream, which is sold in exclusive, upscale beauty shops. Plentitude cream, which has the same purpose, sells for one-sixth the price in supermarkets and discount stores. Both use the same chemical innovations, and both are produced by L'Oreal. This strategy of targeting significantly different segments of the market with similar products enabled the company to realize annual sales growth of 12 percent and annual increases in profit of 15 percent during the mid-1980s through the mid-1990s.
The company's strength, which is built on spanning the luxury and mass market, depends on a field sales force that can understand and market to the various retailers. It is the responsibility of the field sales manager to recruit, train and develop field representatives who understand not only the nuances of the various brands they represent, but the different marketing strategies that are needed for th...