Brand Management Essay of L'oreal

Brand management

Table of Contents
INTRODUCTION...........................................................................................................................1
SECTION 1......................................................................................................................................1
TASK 1............................................................................................................................................1
P1 Importance of branding as a marketing tool and how it has emerged with business
practices.......................................................................................................................................1
P2 Key components of successful brand strategy and managing brand equity..........................3
TASK 2............................................................................................................................................6
P3 Different strategies of portfolio management, brand hierarchy and brand equity
management................................................................................................................................6
SECTION 2......................................................................................................................................9
TASK 3............................................................................................................................................9
P4 How brands are managed collaboratively and in partnership................................................9
P5 Different types of techniques for measuring and managing brand value............................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
For a business, in context of profitability and revenues, a credible brand is a key of
success. A brand is a name symbol, design as well as intermixture of all of them that is conscious
in order to identify goods and services of one marketer or group of Sellers and to separate them
from market competition. Its a sum total of company's value as evidence by how it is deliver
these value at every point of contact. Hence, branded products are able to raise customers'
satisfaction level as it is very much important in marketing. It also assure better quality, easily
availability of goods and pricing stability to target audiences. Branding supports a firm to
accomplish its goals and objectives in a certain time period. L'oreal is the chosen organisation for
this present assignment, its a French personal care company. It is a world's ample cosmetic
company and formulated its actions in aura of skin care, perfume, make up, sun protection, hair
colour and hair-care. Apart from this, the report will be describe importance of branding in
emerging business practices. Readers will also come to know about key components of
successful brand strategy how to manage brand equity. At last, there will be discussion upon
diverse techniques in order to evaluate and pull off brand value of the company.
SECTION 1
TASK 1
P1 Importance of branding as a marketing tool and how it has emerged with business practices
Brand - Before understanding the term branding, readers firstly have to know about the
core concept of brand. A brand entails with a product or service which differentiate an
organisation to its rivals ; creating an effective brand assists both consumer as well as
manufacturer generates a win win situation for both parties. Along with this, brand provides legal
protection towards novel aspects or features of goods. Brand loyalty will contribute to retain
existing customers while diversifying one product line and it also renders security of demands
and creates barriers for other manufacturer in order to easily tap existing customer.
Branding - The term branding can be outlined as a process of building an unique name,
design, symbol, message or tag line among consumer’s mind with an aim of distinguishing it
from external rivals offerings and increasing loyalty. Branding helps differentiate products and
services of the organisation and make them worthy for customers. However, a brand represent a
firm's message and objectives that go beyond selling a product. An effective branding is able to
get customers' know about products' details and its usage; it also promotes recognition of
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business. Additionally, an attractive brand can make referrals or viral activity since individuals
love to educate others concerning the brands they like.
Branding strategy of LO'real - L'Oreal is a popular cosmetic brand among people
especially in women. The main brands of the firm are – Lancôme, Giorgio Armani, Yves Saint
Laurent Beauté, Biotherm, Ralph Lauren, Shu Uemura, Cacharel etc. The overall revenue of
L'Oreal is €26.024 billion and current operating income is €4.676 billion. There are overall
90000 employees are presently working with the company; it always focused on providing
innovative and worthy products to target audiences for obtaining maximum competitive edge
from target market. L’Oréal is one of the world’s top beauty brands as its total worth is $110
billion approximately. As the brand maintains its seat at the top through innovations in
technology, beauty and advertising. For example- introduction of L'Oréal's own particular site
Makeup.com uncovers magnificence tips, traps and items that can engage ladies to achieve their
optimal level of excellence. Its articles have simple to take after well ordered instructional
exercises joined by itemized pictures and recordings. Then again, L'Oréal made the first virtual
make up analyzer application named Makeup Genius. The application empowers ladies to
attempt different make-up looks progressively with the utilization of 300+ L'Oréal items. All
these marking techniques causes firm to remain effective in showcase rivalry.
Importance of branding as a marketing tool and emerging business practices: -
 Branding influence recognition – The most important logo in brand it its logo as if people
are aware about this, then it means branding has worked. Logo design of company must
be simple and enough powerful to affect customers' choice. Thus, effective branding
ensure that more and more get know about firm's offerings or products.
 Branding builds trust – It generates trust and credibility of people; it results customers
will get influence to purchase products and services. But to build individual's faith
management requires to generate qualitative or value added products which are able to
satisfy customers' needs and demands. A brand also communicates a culture of
reliableness that customers share with a brand; most importantly a brand builds trust of
its audiences.
 It provides employees' inspiration – A strong brand is able to attract people to work with
it; they feel proud to engage with that brand as well as try to accomplish organisational
goals and objectives.
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