Analysis of Brand Management Research and Theory

The provided document is an in-depth study of various aspects of brand management, including research, theory, and practical applications. It covers topics such as strategic brand management, advertising media planning, and employer branding, providing insights into the latest trends and best practices in these areas. The document also includes a compilation of articles and studies from reputable sources, offering a comprehensive understanding of brand management concepts and methodologies.

Brand Management

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Introduction............................................................................................................................3
Main body...............................................................................................................................5
Conclusion..............................................................................................................................9
TASK 2............................................................................................................................................9
1. Brand portfolio strategy:.....................................................................................................9
2. Hierarchy management of brands within organisations portfolio......................................9
3. Analysis of strategies used for managing equity of brands..............................................12
TASK 3..........................................................................................................................................13
1. Strength of a brand that can be leveraged .......................................................................13
Difference between brand extension and line extension......................................................13
2. Weaknesses that need attention and providing some possible suggestions.....................14
3. Collaborative and partnership agreements.......................................................................15
TASK 4 .........................................................................................................................................16
1. Brand Value......................................................................................................................16
2. Brand Awareness:.............................................................................................................17
3. Market Share....................................................................................................................18
4. Consumer Attitudes..........................................................................................................18
5. Purchasing Intent..............................................................................................................18
CONCLUSION..............................................................................................................................19
REFERENCES..............................................................................................................................20

INTRODUCTION
Brand management is the tool and technique that helps in analyse and plan that make
perception about the product and services in market. Develop and maintain a strong relationship
with target market is very important tool in brand management. In tangible elements of brand
management consist of product and services and their important features such as look, price and
packaging of product and services. It is about deep knowledge of the term ''Brand'' in which
includes develop the promise, make it and maintain for the customers to meet their perception .
Brand management is the art of creating and maintaining it for long period of time and managing
tangible and intangible characteristics of brand.
This report is based on L'oreal Group which is a French personal care company, its
headquarter is in Clinchy and registered in London. It is one of the world's largest cosmetic
company and provides products such as hair colour, skin care, sun protection, make-up and
perfumes. This report is based on Brand and its equity and how to make an successful brand with
role of marketing in building brand. Further it elaborates brand portfolio strategy and hierarchy
management in organisation with strategies to maintain brand equity in the market. In addition to
it focus on brand leveraging, its strength and weaknesses with help of collaborative and
partnership agreements. It also explains Value, awareness, share and customer attitudes of brand
which are important attributes in organisation stability.
TASK 1
Article 'Brand is Power'
To: Board of Directors of ' Optimum Impression Ltd '
From: Marketing Manager
Date: Feburay 6th , 2019
Introduction
Optimum Impression Ltd. is an advertising organisation of UK, that offers a wide range of
services. This company always aims to deliver high quality of services to its consumers as per
their requirement. In this regard, its marketing manager has prepared an article on L'oreal Group
for developing new marketing Brochure, named by 'Brand is Power'.
Brand is an unique design, sign, symbol and words or combination of all these, it helps in

creating an image to identify an product and services and helps in differentiate from competitors
(Anselmsson, Vestman Bondesson and Johansson, 2014). With the passage of time its image
associated with the credibility, quality and perception with satisfaction of consumers mind.
With 18 international brands like Garnier, Lancome, Ralph Lauren and more, L'oreal is
considered as one the leading brand in cosmetics, skin care and luxury production.
Brand equity refers to the value and enhancement that is generated by the organisation in their
product and services and create an valuable or recognizable name in comparison to their
competitors. An product can be become valuable assets by providing memories, easy
recognition and superior in quality and reliability (Dunes and Pras, 2013). Brand equity has
three important components in which includes perception of the consumer, positive and
negative effects and their resulting value. In case of optimum impression Ltd. it creates its brand
equity by giving best quality to their consumers. Brand equity is very important when an
organisation plan to expand its market share.
Stages of Building a successful brand Brand building is a linear process in which main and
important components that helps in building a strong foundation of brand (Eggers and et. al.,
2013). That in some time become mature and nurture, this process have essential stages that
help in creating brand value for the product and services in case of optimum impression Ltd.
There are some specific steps in building a strong brand that are as follows:
Consider brand authenticity Achieving the authenticity is the big deal and it is old saying that
actions speak louder than the words. In case of building brand authenticity organisation have to
give their product description in true manner. Every organisation in today's scenario are
available on the websites, social media and proclaim their mission and objectives if they are not
true in their words then it creates risk factor and damage the brand value. Authenticity is
important factor in brand identity by that people interact with their customers and community as
a whole. So building the brand there is need to create authenticity in product and services. In
scenario of optimum impression Ltd. It works on authenticity in their product and services to
fully satisfy their customer base.
Identify the target audience Identify the target audience is one of the most important aspect in
building brand, to build brand there is need to identify the target audience. In case of Optimum
impression limited their consumer base is corporates because it deals in professional joinery and
carpentry related services so while expand their market share there is need to evaluate consumer

base. So that according to that products should be frame.
Develop a mission statement to develop a strong brand there is need to evaluate purpose and
mission of the organisation so that employees can give their best in organisational goals and
objectives while expand market share in Optimum impression limited. Mission statement
should be actionable form so that necessary steps should be taken to accomplish goals (Esch
and et. al., 2014).To develop an brand name there is need to frame mission statement that give
direction and give purpose also. In that current and potential future consumer should be
evaluated in better manner in optimum impression Ltd.
Determine the value To build a strong brand name there is need to evaluate organisation key
values or strong points and after that find out in which area they can expand their market share
in case of optimum impression limited their value is openness and their product quality so by it
they create brand name while expand its market share.
Establish voice and personality of organisation To build strong brand identity there is need
to make product their voice by provide suitable content and available on all channels
(Fetscherin and et. al., 2014). It is depend on type of product if product is professional then the
method of communication is different from Bash products. In case of optimum professional
limited they provide carpentry products to corporates so their communication channel and
method is different from other field and that communication gradually their voice.
Role of marketing department in creating brand equity Marketing play a very important
role in creating brand equity to give differentiated products, marketing majorly work to promote
products by show unique features. Product should be brand name when it is accessible to
everyone and it is work of marketing to give accessibility of product to customers. The global
cosmetic market is valued to reach an estimate of USD 80bn in 2026 by giving opportunities in
future. It has get specialised information by sites in which Quancast and Market samurai are
reliable source from which organisation collect data and information. Hence marketing work as
a tool to collect important data and information. They find out solution of consumers problem
by read their feedbacks and give relevant information to other departments.
Main body
Successful strategy for strengthen:
Brand equity- Quality products and services is the backbone of brand strategy that is related to
deliver quality products to the consumers (Franzak, Makarem and Jae, 2014). In that strategy

deliver products that satisfy not only current needs of consumers but also their future needs so
that they can get delighted experiences from products and services from optimum impression
limited.
Competitive analysis To build an strong brand there is need to evaluate competitors strategy,
recent trends and activities that prevail into the market so that according to consumer demand
they can reform in their products and services by optimum impression limited.
Consistent brand image The most convenient and usable strategy to make an strong brand
name there is need to find the place in which organisation presently exist and to remain always
faviorate of the consumers methods of communication in consistent and engaged way. To
maintain consistent brand image there is need to evaluate prices and quality of the products with
promotion strategy also. In case of optimum impression limited to build consistent brand image
there is need to give always provide products that satisfy consumer needs and wants.
Keller's consumer brand equity Keller brand equity model helps in strengthen the brand
equity that are as follows:
Brand identity ( who are You) That point states about what kind of brand it is and how it is
differ from competitors. That step enables to create Brand salience or awareness in products
(Griffiths and McLean, 2015). This helps in create goals and objectives to bring brand
awareness by evaluating that brand perception is correct at every stage of buying process of
product and services. In that marketers find out the choices between brand of competitors and
their own. For example: To specify brand, L'oreal use the tag line in its product 'Because I'm
Worth it'.
Brand Meaning ( what are you) ? In that identify and communicate what brand stands for and
it also helps in performance and imagery in which product is able to satisfy consumer needs and
wants. In performance defines in which manner wants of consumers meet properly and in
performance consist of five factors in which primary characteristic and their features, product
reliability, serviceability, effectiveness of services and efficiency and style with design. In
imagery in which manner customer's needs and wants satisfy needs in social and psychological
manner. In case of L'oreal, for this company it defines brand as one of the luxurious image in
cosmetic and skin care products.
Brand Response(What do I think or feel, about you) In response consist of feedback related
to products and services with judgements and feeling regarding products. For this process,

L'oreal takes appropriate decisions to meet demand of customers in desired manner. It always
give preference to customer's demand and what they actually want from its products.
Brand Resonance (How much of a connection would I like to have with you) ? That is stage
in which consumer reach at top and feel deep connection and psychological bond with them. In
resonance includes loyalty of the behaviour of consumers in which regular and repeat purchase
of consumers. Attitudinal attachment in which how much love an consumer show for products
of loreal with sense of community and active engagement in which active engagement with
products and services (Heding, Knudtzen and Bjerre, 2015). for example in case of loreal it
gives advertisements that emotionally connect consumers by their products that helps in create
their brand loyalty.
Hence all these steps helps to optimum impression limited to build strong brand equity
before their customers by evaluating each and every aspect that discussed above to get effective
results.
Brand extension/Stretching is a strategy of marketing in which firm with a developed image
avail their own brand name in different categories. Organisation expand its market share with
strong brand name that is exist already. That existing brand name helps to organisation to
launch a new product in new products and services very easily. In case of L'oreal, it uses its
established brand name in their new product and services that already recognize and admirable
by their existing customer and their new customers. Existing brand that helps in brand extension
is refers to as parent brand. Brand extension helps in increase brand image easily and risk factor
easily reduces in perspective of consumers because existing brands have great goodwill that
passes to another products easily. For example in 1998, when L'oreal decide to launch a new
product after thorough research, it debated a lot before launch a new brand or for an extension
because it is totally a new product that basically centralise for women's need. So to increase
brand extension competitors analysis is very necessary.
Reinforcing and revitalising of brand Brand majorly focus on retain brand equity to keep
alive in existing and new consumer base by updating products and services that strategy follow
by optimum impression limited to keep align. According to Keller Brand reinforcement
involves following aspects that are as follows:
Maintaining brand consistency that helps in create positive reputation with customer, it enables
to customer's familiar with brand and enhance their thought process and perception also

(Högström, Gustafsson and Tronvoll, 2015). For example: In case of L'oreal for Revitalization
of products, management need to focus on developing innovation. For this process, it needs to
launch organic or herbal beauty products in developing countries, where people demand more
about such cosmetics.
Brand revitalisation is adopted when product reaches at maturity stage in PLC and their profit
fallen drastically. These strategy use by organisation to back to in profitable stage for that
optimum impression use different types of research. Brand revitalisation should be adopted to
increase competition, capture different market share, to globalize in different market scape and
for mergers and acquisition and to adopt new technology and reduce legal issues that face by
organisation (Kapferer, 2012). For example: L'oreal Paris product is at maturity stage so to
revitalisation of that product they add some features so that consumer can attract towards it
again.
Overcoming from brand crisis To overcome from brand crisis Loreal use variety of strategies
in which proper planning, acknowledgement and informing with monitoring and extension,
reinforcement are important factors that help during the crisis. For this process, to overcome
from brand crises, L'Oreal is going to penetrate the herbal and Ayurvedic industry in Asian
marketplace.
Monitor 24/7 To overcome from the brand crisis there is need to not only evaluate consumers
response during the week and working hours instead of that they have to evaluate on 24/7
means on regular basis. By evaluation of consumer response it proves very beneficial for them
to deal in effective manner and understand needs and wants of consumer and reforms that needs
in future to satisfy consumer expectations (Bruhn, Schoenmueller and Schäfer, 2012). L’Oréal
on constant basis evaluate consumer's changing needs and wants then major reforms should be
adopted so that effective results should be accomplish.
Respond quickly and ethically To control the brand crisis there is need to respond quickly to
keep the situation not away from control otherwise it is very difficult to commencing ethically
without finding out problem in full manner. To find out loop falls and unfair practices that
happen during the launch of product and services or in existing product. In case of L’Oréal it
establishes a particular team that handle all aspects of brand and find out loop falls that exist in
building brand. To find out loop falls their need to quickly acknowledge crisis and find out root
cause of it and accordingly take action so that permanent solution should be find out.

Not allow short-term thinking for long term values To overcome with crisis there is need to
think in long term and about in organisational perspective so before making any statement and
think about the organisation and its goals and objectives, their customer's, employees and their
stakeholders so that easily overcome from the problem should be possible (Kasemsap, 2015).
Conclusion
Branding as a marketing tool Brand work to frame an image before consumers by their
quality, accessibility and pricing and help to retain large no. of consumer. In that scenario
marketing works to spread characteristic of products to masses so that they become loyal
consumers of Optimum impression Ltd. To succeed in branding there is need to understand the
consumer's perception and needs also in that efforts of marketing helps to understand in better
manner. There is direct relationship between the branding and marketing (Kavaratzis, 2012).
Marketing and brand strategies work in integration objectives and goals. Marketing helps in
proper promotion and advertisement of features and values of goods and services so that it
become popular brand with information that is deliver by marketers by evaluating competitors
and their varied strategies that help in building brand equity.
TASK 2
1. Brand portfolio strategy:
Brand portfolio strategy is for family of brands with roles and responsibilities with
relationship with each other. In work in delivery of synergy, clarity, relevancy and differentiation
and energy. It helps in reduce risk and set to manage business units, assets or technologies.
Brand portfolio strategy is used by L'oreal to strengthen its brand image in luxurious cosmetics.
This strategy help to organisation in bring clarity, efficiency and focus in direction with growth
opportunities. Portfolio is about optimisation of hierarchy, linkages and role in brands to support
business strategy. In case of L'oreal, there are several brands in cosmetic field- L'oreal Paris,
Lauren, Diesel, Giorgio Armani, Garnier and more. Therefore, brand portfolio strategy of this
company mainly classified into four categories- Professional Products, L'Oreal Luxe, Active
Cosmetics and Consumer Goods. For an instance: In 2017, L'Oreal has launches a new hair care
products- Botanicals Fresh Care, which is available in France, UK and Germany as well as it
going to launch on global level. In addition to this, Loreal paris launch its Age perfect
Renaissance cellulaire range and mousse absolue are slated that launch in January 2019.

2. Hierarchy management of brands within organisations portfolio.
It is the framework of brand in organisation and that is also known as brand architecture.
It is related with brand associated with the organisation and differentiation with one another in
products and services. It is the integrated process in which various processes to build brand
occurs to get effective results in business. Loreal use different models of brand portfolio that are
as follows:
Branded house:
Branded house strategy in which firm is brand, in that sub brands not detract from main
brand of organisation. It helps in create strong brand and it is easily recognizable with
memorable. Examples of Branded house are FedEx, google, Apple are come under it. It is also
known as one firm brand strategy in which company have single brand logo sign, positioning and
messaging. If organisation have the goal to enhance visibility and reputation then it is fruitful to
focus on single brand (Sarkar and Sreejesh, 2014).
House of brand:
It is completely opposite from Branded house, in which sub brands of organisation
featured or promoted rather in company brand. In that hierarchy is very complex, in that mostly
businesses are consumer products or holding organisations. Example of HOB are P&G, Newell
and Mars, Unilever etc. A HOB strategy a no. of offerings that helps in reach at each and every
individual brand and in their benefits include to reach at large no. of consumers, with help of
HOB company can take risk because they have strong brand name at their back.
Loreal have an admirable ''House of brand'' strategy in which almost 20 brands in
cosmetics and skin care. It has high level of clarity, leverage so that they can promote goods in
better manner.
Basis Umbrella Brand Products
Loreal Loreal deals in cosmetics and
skin care products and it
adopts house of brand strategy.
Products of L'Oreal mainly
divided into- Haircare,
Fragrances, Skincare and
Makeup. It includes Vichy,
Diesel, Ralph Lauren and
more.

Maybelline Maybelline is a major
American make-up brand sole
at worldwide and French
cosmetics company that also
use house of brands.
It deals in various products
including make up products
and accessories. It includes
Colossal Kajal, Baby Lips,
Maybelline Liner and more.
Hierarchy management can be explained with help of Aaker brand equity model that are
as follows:
Aakar elaborates that brand value controlled and defined with help of five components
and their integration that are as follows:
Brand loyalty:
This attribute define how much consumer loyal towards the brand and higher loyalty
helps in reduce marketing cost and loyalty is something that cannot be imitate overnight and give
time to firm to respond to their competitors (Schmitt, Brakus and Zarantonello, 2014). In case
of L'Oreal it has strong brand loyalty that increase their revenue and retention also. This
company has got 133rd ranked among top multinational brands in Forbes list. Along with this,
from last 23 years, it has hold its position in Fortune 500 magazine. On the basis of market
capitalisation, it has been valued as $1.7.5 Billion (Marketing Strategy of L'Oreal, 2019).
L'Oreal has launched La Roche-Possay My Skin Track UV currently, which is the first battery-
free wearable sun safety sensor. This product offers a better life for sensitive skin and promote
good skincare practices which can be adapted to each skin type.
Brand awareness:
Brand awareness is the starting point while build brand equity, awareness works and
helps while consumer plan to purchase goods. In case of L'Oreal its logo and quality work as a
brand awareness and helps in increase their sales. Positive attitude of consumers helps to
increase brand awareness towards products and services (Scholz, 2014 ). For increasing brand
awareness, L'Oreal has offered its products in more than 130 countries. It has also provide entire
information about its brand on own website and tie-up business with some online shopping sites.
Perceived quality:
In perceived quality consist of how extent company is able to provide good quality
products and services. L'Oreal by accessing consumer needs and provides products according to

them add features in their products. Product should be considered good and qualitative by level
of differentiation in comparison to competitors brand, price of product and distribution channel
so that it can access to large no. of consumers and availability of different line and extension so
that it satisfy consumer needs and wants appropriately. For getting customer satisfaction,
Infallible makeup Foundation: data launched in marketL'Oreal has adopted a 'viral marketing
strategy'. Under this technique, brand and products are marketed by conveying marketing
strategies.
Brand associations:
In that consist of retrieve power and how much product is different from others and
association with product such as memories and positive attitude while use it. In case of L'Oreal it
by giving advertisement with first slogan i.e. 'Because I'm Worth it' which has replaced later by
'Because we're Worth It'. Here, shift of 'I' to 'we' has denoted the involvement of customer in its
brand.
Other proprietary assets:
In other proprietary assets includes trademarks, patents and channel relationships that
give important assurance to both organisation and consumers also. Under this segment, L'Oreal
has made a large investment which is near about $1000 million in R&D and approximate 498
patents.
3. Analysis of strategies used for managing equity of brands
There are different types of strategies to manage equity of brands that are as follows:
The quality never goes out:
In perspective of L'Oreal it has to always produce quality product and services is the first
and foremost strategy to build brand equity. Consumers have large no. of choices if the
organisation not give qualitative products and services then they easily switch on other products
and services. Quality enhance in loyalty of consumers towards products and services. For this
purpose, respective company has made a research in some major fields. It includes dermatology,
toxicology, tissue engineering and biopharmaceutical research. It helps in developing and
maintaining quality of its products.
Loyal to the core:
The another strategy to build brand equity L'Oreal is to build loyalty towards their
consumers. There are no. of ways to gain retention of consumers and achieve competitive

advantage. To catch loyal consumers there is need to connect consumer emotionally by giving
delighted experiences to them. Give them status symbol so that consumer feel proud when they
use their products and services. In case of brand portfolio of L'Oreal, it has endowed with some
international standards of brands. It also covers a wide range of products that help in satisfying
needs of every customer as per their preference. For example: L'Oreal operates business through
four different divisions- Active cosmetics (Vichy, Inneov), Luxury products (Diesel, YSL),
Professional (Matrix Essentials, Mizani) and Consumer Products (Magic, Colorama). Its entire
range of products are available in different price rates which helps in getting attentions and
retention of loyal customers.
Here, in L'Oreal, brands are organised in portfolio as per country based:-
Country Product Trends Consumer Trends
Brazil Here, in this country, people
demand specifically for bold
lips and more natural eye
make-up.
Middle class women demand
beauty products for multiple
benefits due to limited
purchasing power.
United Kingdom Americans mostly demand for
products having green
features, personalised solutions
and niche labels. Here, bold
eyebrows are still in trends and
contour products have
overtaken nail items.
People prefer to buy beauty
products mainly from stores
only. Women belong to age
18034 years are using much
L'Oreal products. They spend
near about 2Euro billion pa on
purchasing beauty items.
India Bright lips are mostly in trend
in this country, people demand
for international branded
products more.
Indian women spend more on
purchasing beauty products
which are high on demand.
Near about 62% of them used
to buy products through
online.

TASK 3
1. Strength of a brand that can be leveraged
Difference between brand extension and line extension
The difference between both the above terms as follows:
Brand extension: It also called as brand stretching strategy. A brand extension is when a
company uses its leverage to launch a new product in a different category. It helps in enhancing
popularity and reputation of renowned brand for increasing demand of new goods and services.
Line Extension: When company launch additional items in same product line under
same brand name then it is called line extension (Aaker and Joachimsthaler, 2012). This creates
corporation slight twist on establishment of brand as it uses older brand name and imagery in
same product. It is totally opposed to brand extension.
Brand Extension Line Extension
1.it helps in using existing brand name for
launching new product at marketplace.
2.it helps in creating awareness about existing
brand.
3. A brand extension can increase profits by
allowing manufacturers to tap into new markets
and offer increased diversity in their inventory.
1.It assist in increasing number of products in
same known product category.
2.it helps in increasing sale of unrelated
products to existing category.
3. A line extension can reinvigorate a product
line, bringing it back into the public awareness
by drawing new customers and higher profits.
Brand leveraging is a strategy for using power of existing brand for supporting entry of
organization in totally new product which is related to category. L'Oreal has very strong position
in the UK market, it deals in the various type of cosmetics (Abrahams, 2016). The strengths of
leveraged brand are as follows:
High recognition of brand name: Loreal is strong brand name in UK which is known
by everyone for its high quality product. Maximum people like to purchase it's product as loyalty
and customers trust is owned by it with help of their offerings which is helpful in achieving
brand leveraging. For enhancing brand image in luxury market, L'Oreal has made investment in
Siebel CRM system to boost customer loyalty as well as reduce churn.

Large number of stores and outlets: L'Oreal has always believed in developing
diversity in business therefore, it has given recruitment to more than 893,00 from 150 countries.
Its wide range of products are easily found in various outlets like hair salons, super markets,
beauty outlets, pharmacies, perfumeries and more. Along with this, it also tie-up business with
various shopping sites like Alibaba, Amazon, Flipcart and more.
Wide variety of products: L'Oreal offers a wide range of products that majorly
classified in terms of cosmetics, hair colour and shampoo, perfumes, skin and hair care etc. In
this regard, its famous brands are eyeliner, mascara, primer, foundation, lip liner and gloss,
cleansers, toners for skin care, serum for hair styling and more. In addition to this, it also has a
line of products under kids section.
Promotional Strategy: L'Oreal is considered as the highly international brand where its
every product is found in one of the best quality. For getting attention of targeted customers
(youngsters mostly), attractive and well-known face of international caliber are found in its
promotional campaign. It includes Former Miss World 'Aishwarya Rai Bachhan' who was a
brand ambassador of this company. Currently, 'Sonam Kapoor' is found as brand ambassador in
its advertisements.
Form above discussion it can be concluded that Loreal has many strength in their
products and service which assist them to gain market position. Thus, it also assist in creating
loyalty of customer and attaining sustainability at market place.
2. Weaknesses that need attention and providing some possible suggestions
Sometimes organisation spends lot of money and efforts to get stablish brand name in
market and by logo and other attributes they create their brand value in market. To build strong
brand image there is need to observe about culture and activities about core values of
organisation. In world even most well known brand can kill due to wrong brand positioning.
Some common mistakes that done by L'Oreal in its products and services that are as follows:
L'Oreal has founded accused as per The Food and Drug Administration (FDA) to use
inappropriate advertising campaign, that misleads customers. Some advertising campaign was
sounds like they were drugs not cosmetics. It includes slogan 'Boost the activity of genes and
stimulates production of youth proteins', which is associated with one of its famous products-
Lancome (FDA Issues Warning to L'Oreal over Misleading Ads, 2019). Therefore, FDA has

stated that it affects functional activities of human as well as rendering towards drugs, as per
Federal Food, Drug and Cosmetic Act.
In addition to this, according to Advertising Standards Authority (ASA) of UK, L'Oreal
has also slammed to create a misleading magazine advertisement. It is based on promoting an
anti-wrinkle cream that featured a black and white picture of actress Rachel Weisz. Therefore,
using such wrong promotional strategies, L'Oreal has faced various issues to gain attention of
loyal customers.
3. Collaborative and partnership agreements.
A legal partnership is contractual relationship with cooperation in two or more parties
that have specified and joint rights and responsibilities. Each and every party have equal share in
profits and risk factor.
Collaborative agreement is an agreement in which two or more researchers engaged with
aim to research on specified topic (Jugenheimer, Sheehan and Kelley, 2015). It is agreement of
share data, research and important material to find out desirable results and findings also. Loreal
is a creator of value and innovation is one of the key factor in its success and expertise in
development process and close coordination with its suppliers help to remain always superior.
Collaborative process is based on trust on organisation and their suppliers. Its
collaborators in packaging its products are Cherry pack which gives packaging innovation and
helps to attract customers by their packaging. L'Oreal paris Launch a new and innovative alliance
with Melanoman Research alliance to help to fight with skin tones and distinct products
according to them. So that team test on different skin tones of women and build products
accordingly so that bad effects never appear and consumer feel satisfied from loreal products and
services.
It has some other partnership agreements with other company also in which includes
Cosmetic Europe and other no. of academic, public with private institutions that work on
advance solution of animal free safety evaluation. There are different partnership agreements in
which ECOPA, European consensus platform for alternatives and many more work to give their
contribution to provide best products and services to their consumers.

TASK 4
1. Brand Value
Branding previously emerged as a corporate strategy all organisation in every sector use
that strategy to build their brand and identity by their corporate brands and product related
brands. Branding is an marketing strategy in which investing into new brand and manage
reputation of corporate brand goes simultaneously. Building brand and maintain it is the core
work of the CEO or senior managers. In recent times some new terms emerge such as brand
value, power and equity (Kapferer, 2012). For example Brand L'Oreal Paris has value to more
than 13.6 billion dollar, in comparison to brand value of Garnier roughly 4.8 billion.
Brand value is financial worth that possess by the organisation, to evaluate value there is
need to determine value of components of business in market and consumer ready to pay price of
products and services.
Measurement methods of brand value:
To measure brand value is straight forward task, brand equity is a bundle of assets and
liabilities that is in form of visibility of brand, their association and loyalty towards brands.
There are different ways and methods to evaluate brand value in the market that are as follows:
Brand visibility:
This is the measurement tool that define about brand awareness and credibility towards
need of particular customer's. In this regard, for creating visibility L'Oreal has created various
innovations in its products. These products are accessible to everyone by using a unique
promotional strategies. It includes Color Riche Lipstic, Elnet Hairspray, Elseve hair care, Men
Expert Hydra Energetic Skin care etc.
Brand association:
L'Oreal offers all kind of cosmetic products for both men and women in developing
countries. It shares a strong vision of beauty with more than 35 well-known ambassador icons. It
includes Julianne Moore, Liya Kebede, Aishwarya Rai Bachhan, Doutzen Kroes and more. In
Cannes Film Festival, L'Oreal Paris has become the first official make-up artist from last 20
years.
Customer loyalty:
Customer loyalty provides flow to business by current and potential products and
services by believing that brand offers quality. As L'Oreal mainly target aged and working

women therefore, to gain loyalty of them, it concerns more on developing innovation in its
products. To gain attentions of loyal customers, it has made huge investment in CSR activities
such as- establishment of education centres in many countries.
2. Brand Awareness:
Brand awareness is about probability that consumers are familiar with products and their
special features that are available in products of L'Oreal. It is degree with consumer attach with
products and services and ratio of niche market that have knowledge about product previously.
In brand awareness includes Brand recognition and recall. There are two types of brand
awareness aided and top of mind awareness former one describe about mention about product
category that consumer can easily recognize from brand list of organisation. In later one describe
about mention about product category, first and foremost brand that consumer easily recall from
customer's mind is organisation's brand. In case of loreal it helps in measurement of brand
loyalty and attraction power of consumers towards product (Dunes and Pras, 2013).
Tactics for measuring brand awareness:
There are different ways to measure brand awareness that are as follows:
Surveys:
In order to get feedback of customers, management of L'Oreal uses 'viral marketing
strategy'. Here, some free products as sample provided to selected respondents and then further
suggestions or feedback of them is obtained for measuring effectiveness of the same. For
example it uses point of sales advertising and promotion that are very important method to win
their consumers. They use creativity, innovation and competitiveness to reach at multi material
suppliers and print materials and free consumer gifts.
Website traffic:
By observing website traffic an organisation can get important insights about brand
awareness. With help of Google analytics tracks and URL and address bars, bookmarks,
untracked email or documents that are offline are important tools that help in gather important
insights. In this regard, L'Oreal use this technique to develop a stronger emotional bond with its
targeted audience.
Use social listening:
The another most effective tool to measure brand awareness is by listen about product at
online, organic conversations about product and services their views, responses so that

measurement should be judge and important decisions should be taken. In case of Loreal it uses
various social media tools and techniques to aware about products and services.
3. Market Share
Market share is the percentage or portion that is controlled by a particular product or
company, it is percentage of an industry or total sales that is occurred by a particular company
over the specified time period. Market share is measured by its sales and percentage of industry
total revenue. An organisation can determine its market share by dividing total sales by total
sales in a fiscal period. In case of L'Oreal, in enhancing its market share, e-commerce websites
have played a major role. As it helps in enhancing its sales performance which is measured as
near about 34% in 2017 (Marketing Strategy of L'Oreal, 2019). It was accounted as approximate
$2.5 billion in same year. In addition to this, using Travel Retail Channel (duty-free stores on
airports), also give opportunity to L'Oreal in enhancing its sales growth.
4. Consumer Attitudes
Consumer attitude in which three important components are consist including beliefs,
feelings and behavioural attentions that are important attribute towards objectives and goals in
context of marketing. These components are highly independent and together influence of
consumer reaction towards object. There are different types of methods to measure consumer
attitude such as: Non structured and structured measurement techniques. For example L'Oreal is
a professional hair care product provider which giving an aesthetic experiences to their
consumers that play major role in influencing their behaviour in better way. In case of loreal it
has many styling products that serve for utilitarian cause and not for practical point of view.
Structured method is one in which formal structure or procedure of questioning should
be follow and it become disguised when respondent not know and have not adequate knowledge
about purpose of interview. In non- disguised – non structured method consist of focus groups
and in depth interviews and in Disguised non structured techniques includes word association,
story completion, sentence completion and pictorial technique and cartoons method. Scaling is
the technique that is use for measure qualitative responses of the respondents in which feelings,
perceptions, likes and dislikes with interest and preferences.
For Example: In order to target different segments of customers, L'Oreal has devised
product differentiation strategy (near about 34 brands in several product categories) to target

middle and upper class consumers. In this regard, majority of these targeted customers belong to
working professionals and aged individuals who seek to flaunt their personas.
5. Purchasing Intent
Purchasing intent is probability about consumer purchasing that they purchase or not. For
proper evaluation of purchase intent, marketers take help of modelling to identify future results
by evaluating historical data and knowledge. Social media is one of the important method that
use to evaluate purchasing intent by analyse tap consumer taste and preferences and people share
their thoughts and actions on social media about their reactions on particular products and
services that help to marketers of LO'real to know about purchasing intent of consumers.
Marketers read reviews on social media, blogs, tweet which is a very genuine mode to gain
knowledge about whether the products is liked or disliked by customers. For this process, to
develop pricing strategies as per purchasing power of targeted customers, L'Oreal offers its
products on premium range. As people belong to urban areas are not price conscious and are
ready to purchase high quality of cosmetics products on premium rates. Therefore, it has given
advantage to L'Oreal to offer its products on premium pricing policy. For example L'Oreal uses
strategy to reach at large market share is adopt changes in condition of business is good not in
situation when change become critical need of the business. So it helps to it in framing loyalty
before their consumers and increase in their sales.
CONCLUSION
From the above report it has been summarised that Brand is an important attribute that
differentiate product and services from other similar products. To deal in effective manner there
is need to access value of brand equity and adopt necessary measures to build brand equity in
market. To maintain brand value in market different types of strategies should be adopted in
which awareness, value, purchasing intent and share value that helps in maintaining quality of
products and services in better manner. Loreal according to time and demand make strategies
that enables it to remain always competitive in market and adopt major strengths that create
distinct brand image in market and focus on major weaknesses that have to be eliminate so that
best results should be achieve. There are distinct models and theories that helps to LO'real to
frame appropriate strategies to strengthen its brand name and attain growth in market.

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Online
Marketing Strategy of L'Oreal. 2019. [Online] Available Through:
<https://www.marketing91.com/marketing-strategy-of-loreal/>.
FDA Issues Warning to L'Oreal over Misleading Ads. 2019. [Online] Available Through:
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