Beauty and Cosmetics Product Management

Question: Discuss about the Report of Beauty and Cosmetics Product Management. Answer: Slide no. 2: LOreal deals with lines of beauty and cosmetics products such as hair care, coloring, skin care, make-up and perfume. LOreal offers both men and women products all over the world with an array of prestigious and the renowned international brands that shows a unique heritage. Slide no. 3: LOreal deal with makeup and cosmetics products The products are made of natural and chemical substances The products have a limited validity and they are perishable after a span of time It is for the same reason that the products are needed to be transported at the earliest Slide no. 4: LOreal has been facing challenges in meeting the demand of the dynamic customers choice Delivering products to the customers in the shortest possible time has become challenging at some point Several areas such as field warehouse, packaging, outbound shipping can interface with the distribution and logistic operation of LOreal Marketing factors might also impact the logistic of the Company Slide no. 5: Incoterms or the International Commercial Terms are certain industrial terms issued by International Chamber of Commerce or ICC. The rules are used for basic transactions in business and other distribution processes (Stapleton et al, 2014). The rules are used for commercial transactions and other distribution procurement processes (Stapleton et al, 2014). The documents of shipping confirm that the goods have been shipped with the designated shipper. The shortest and the most effective distribution channel will fetch better success to the Company. Slide no. 6: Different types of incoterms Ex Works where sellers makes the goods to be collected by the suppliers Carriage paid to where the seller paid to transport the goods Carriage and insurance paid where it is the duty of the seller to reach the product to the destination Delivered at terminal where buyer is responsible for carrying the goods Free alongside Ship where the sellers might collect the goods from Cost and Freight where seller must pay the cost for bringing the goods Slide no. 7: Rules of Cost and Freight are restricted to transport goods by sea or inland water Seller might have direct access to the vessels for loading goods Seller is not responsible for insuring the goods The seller arranges and pays for transport for loading goods into the vessel Risk transfers from seller to buyers when the vessel reaches the port For LOreal, CFR incoterm shall be the most effective incoterm and distribution strategy as it will benefit them to transport their goods to international boundaries The company would not be responsible for any risk related to the condition of the products Slide no. 8: Recent distribution plan of LOreal showed partnership with CFAO as a part of the companys strategic plan. A world-class partnership has been witnessed when LOreal teamed with CFAO. Slide no. 9: It is recommended that LOreal would select Cost and Freight incoterms as a distribution strategy The Company would be responsible for bringing the cost to the specified port The buyer will be responsible for any kind of risk of loading and unloading This would help the Company to stay balanced in their business There will be less chance of any kind of loss in the transportation process Slide no. 10: The seller is responsible for paying costs and freight necessary to bring the goods to the destination port The buyer is given sufficient notice that the goods are transported and the buyer becomes enable to receive the goods A proof of delivering the products is provided to the buyer The buyer is subjected to pay right at the point of receiving goods unless agreed upon other conditions Slide no. 11 Top competitors of LOreal are Procter Gamble Company, The ESTEE Lauder Companies Inc and Unilever. Therefore, it is important to understand their distribution strategies Bargaining with freight provider is expected that would help the Company to compare different shipping costs offered by different shipping companies. The shortest and the most effective distribution channel will fetch better success to the Company. It is also recommended that the Company will keep communicating with suppliers and distributers. Without proper communication, formulating an effective strategy is not possible. Developing a common boundary between the logistic and production of product might prove to be effective and beneficiary to the Company. Slide no. 12: It has to be kept in mind that a buyer always wanted to remain competitive and always look for ways to save costs. Thus, saving costs in the distribution channels is the primary requisite.