L'Oreal Field Sales Manager

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

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ployees. Sales managers are traditionally evaluated on the basis of their group's performance. Those sales managers who consistently have groups that meet or exceed their sales quotas, particularly when those quotas are aggressively set, are the managers who do well in the organization. Companies typically compensate sales representatives through a combination of draw (salary) and commission (percentage of sales); sales managers typically receive a percentage of the sales for their organization in addition to a salary. In determining whether or not a sales manager is performing well, his superiors must consider the overall performance of his group. In the case of L'Oreal, each field sales manager must be evaluated on the rate of sales growth that the organization has achieved over a given period of time. But there are other factors which are critical to the company, as well. If a sales manager has strong sales, but a high employee turnover rate, it could be that the managers is unduly aggressive in his management approach. High employee turnover during strong economic times does not necessarily make much difference to the company, which may be able to replace sales representatives with relatively inexperienced personnel wh

Category: Business - L