Digital Marketing Strategies for L'Oreal

The present report provides an in-depth analysis of digital marketing systems that help L'Oreal gain customer attentions and increase profit margins. The report highlights the challenges faced by the company in the industry, including rising competitors and the importance of store presence over digital existence. It also covers the use of KPIs and cockpit tools for measuring digital marketing effectiveness, as well as promotional and advertising strategies.

DIGITAL MARKETING

Table of Contents
INTRODUCTION...........................................................................................................................1
LO 1.................................................................................................................................................1
Challenges, opportunities and impact of digital environment on cosmetic industry.............1
LO 2.................................................................................................................................................3
Contrasting and comparing mortar, bricks and physical channels.........................................3
LO 3.................................................................................................................................................4
Organize digital marketing activities and build multi channel capabilities in company........4
LO 4.................................................................................................................................................6
Methods for measuring and monitoring digital marketing.....................................................6
CONCLUSION ...............................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Digital marketing is the marketing of services and products using digital technologies to
reach customers. The main objective of this system is to promote brands through different types
of digital media. In commercial world businesses investing digital channels such as social media,
search engines and their websites to relate with prospective and current clients. The present
report is based on L'Oreal company which is located in France (Tiago and Veríssimo, 2014).
Organization is a French personal care company's and they are leading the world's biggest
cosmetic firm. This report is explained the challenges and opportunities for L'Oreal on digital
marketing and its impact on digital environment of cosmetics industry. It clarifies company
business by comparing a contrasting their digital presence. Furthermore, this study justify plan
for organizing organization digital marketing activities and explain key methods for evaluate,
measure and monitor effectiveness of digital adverting and also discuss recommendation for
betterment.
LO 1
Challenges, opportunities and impact of digital environment on cosmetic industry
L'Oreal is one of the world's largest cosmetics organization that developed its activities in
flied of cosmetic concentrating on skin care, hair color, sun protection products, make up, hair
care, perfume and men's skincare. L'Oreal Paris, Essie, Colorama, Garnier, Maybelline etc, are
organization products that they offer to its customers which make all of them happy and
satisfied.
Opportunities-
With the help of digital marketing, organization will be able to reach at its target
customer easily. They can promote its products through digital technologies that help to attract
people towards them which build its strong customer base more than the others. Firm was one of
the several cosmetic manufactures along with Payot and Clinique. By using digital marketing
system they will gain competitive advantages that help to grow its businesses more and more in
cosmetics industry. Through following this process company garb the people attention and
attract customers towards them its is one of the best opportunity which drive them towards
success and business growth. Organization move into new spaces in beauty industry like
personal care sector through promote its products in marketplace. They invest more in adverting
and marketing goods using digital channels that help to promote goods.
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More than 1 billion customers visit L'Oreal social page and sites every year which
increase it popularity and profit margin. The main benefit of digital promotion is that targeted
customers will be reached in measurable way and cost effective. Company is magnify its digital
leading activity further on all dimensions such as e-commerce, marketing, beauty tech leadership
in edifice new unit, it will help to gain competitive advantages for the group (Kannan, 2017). It
impacts on entire cosmetics industry effectively that increase its popularity and profitability more
than other industries in UK. It allows them to find new market and trade internationally for only
fewer investment. They plan effectively and properly targeted digital adverting campaign that
help to reach the right consumers at much lower price than traditional marketing techniques. It
effects on cosmetics industry by raising it revenue and generate more profit rather than the
others.
Challenges-
But opportunities always bring challenges for organization that make barriers in its
growth and success of businesses. Growing competition within the field of cosmetic brands is
one of the biggest challenge that faced by the L'Oreal in the process of digital marketing. New
competitors come up within new marketing plans and strategies which put pressure on company
to make some changes in its advertising structure. It effects cosmetics industry in which they
suffer for longer time period, it decreases its market shares and profit margin. Cosmetics industry
moves faster in which they do not promote effectively its products in marketplace that make
impact on its customers base. Consumers experience on digital and specifically mobile are
becoming more assistive and personalized. Company do not invest shares properly in their
marketing that doesn't keep up with these fast trends and it impacts on their productivity. Thus,
decreasing revenue of L'Oreal make effect on cosmetics industry market stock and also decrease
its revenue as well. Customers needs and growing industry require effective workforce that help
in manufacturing products according to clients need and also support to run businesses. It is one
of the biggest challenge that company face because in procedure of recruitment organization
have to invest which is more expensive rather than other functions. Limited budget is one of the
challenges being faced by cosmetic industry as well as organizations working under this sector.
Due to limited budget organization cannot be able to manage marketing operation effectively
which affect on its brand value and position within marketplace.
Impact of digital environment-
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Digital environment impact business both negative and positive side, if company invest
money in digital transformation strategies they can be able to spread information about goods
and generate awareness, on the other hand due to limited budgets and resources they cannot
attract people which might be decrease their profitability and productivity.
LO 2
Contrasting and comparing mortar, bricks and physical channels
Digital tools, Platforms and channels-
Google trends, Facebook Ads and Google analytics are the three types of digital tools
used for marketing purpose. Hubspot, Marin software, Webceo and Ginzametrics is the best
online marketing platforms that help to spread information about services or available products.
Email marketing, google search network and search engine optimization is digital marketing
channels used by company in order to generate awareness.
Contrast and compare physical channels, mortar and bricks-
Organization got its start in hair color business and also focuses on other beauty and
cleansing products. They currently market more over than 500 brands in marketplace and
thousands of individual products in all sphere of beauty business that show its stores presence in
the world more than digital presences. Company offers their cosmetic and hair care products at
every local stores and trade in many countries that raise its store presence level at high position
in marketplace. Self purchasing by customers will be very beneficial for firm which generate
high revenue and increase productivity and profitability as well. Promotion procedure help to
attract people and make assure about the loyalty and quality of L'Oreal cosmetic product.
Organization operate its operations in over 130 countries where they provide goods in local
stores, supermarket and other place that is comfortable for clients to purchase it (Yadav, Joshi
and Rahman, 2015). As compare to digital presence many online consumers find it hard to see
how beauty products fit into its personality. They are more comfortable by buying itself rather
than online shopping facilities which provide by company through marketing or advertising.
Physical purchasing is one of the best things that make shopping more easy because at this
process customers choose what they really want to and assure themselves about the quality of
goods which they can not experience through online buying.
Company promote its product through using digital technologies that help to introduce
their goods in front of customers. They invest 38 % is their media invested into digital marketing
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activity that gain 1 billion people on its websites and 250 million followers on social networking
sides are following them. Social media, Facebook, twitter, You tube etc, are the sources of digital
marketing that are using by L'Oreal for promoting their personal and skin care product. It helps
to garb the attention and attract new customers towards their business functions and service.
Customers like to purchase cosmetic products such as perfume, hair color, sun protection creams
and other goods more than online purchasing because it has the high risk factor of making fool
and being a part of a prank by the another. It is not much effective more than stores presence
because customers cannot find out the best products for itself. Many people don't like to buy
goods through using online services in which company does not generate more profit and
increase its revenue rather than the others (How L’Oréal drives marketing effectiveness, 2018).
Digital presence cannot give customers good experience and doesn't satisfy them for buying
cosmetic products. As compare with stores presence customers feel that digital presence or
online shopping will delay in delivering products and find it much harder than self purchasing.
People cannot touch and feel cosmetic and beauty product in online shopping that make them
uncomfortable and get them at unsatisfactory levels where they start avoiding it. In digital
presence clients cannot examine goods more closely while in stores they can analyze the things
and find out the suitable cosmetics. Chance of frauds is much higher than store purchase that
directly impact on L'Oreal image and market reputation which decrease its customer base and
profit margin more than now. Both digital and store presences give benefits to organization but
stores existence is more beneficial for them that raise profitability and productivity and also
maximize financial budgets of firm more than other companies in cosmetics industry.
LO 3
Organize digital marketing activities and build multi channel capabilities in company
Selling plan is a document which share the information for all planning of L'Oreal digital
marketing actions. It shows the channels that are using by the organization for development,
times, investment etc. This plan include many components such as businesses objectives and
aims, determine target customers and others (Digital Marketing Plan, 2019). Digital Advertising
Plan is base on five steps which has to be follow by company that help to organize its functions
and activities of marketing.
Step 1: Situational analysis- before making digital marketing plan is important to carry
out an external and internal analysis of L'Oreal (SWOT).
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STRENGTH
 L'Oreal provide variety of cosmetic and
beauty products to its customers.
 They offer expensive and luxury
product with focusing on its quality.
 Presence of digital marketing is one of
the best things that attract customer.
WEAKNESS
 Organization highly invests in research
development that make its profit
margins lower than now.
 Lack of employees in the company are
the weakness for brand.
OPPORTUNITIES
 Company move into new market in
beauty industry and expand its business
at international level.
 They create new cosmetic products and
make innovation consistently.
 Invest in digital marketing like,
Facebook, social media etc.
THREAT
 Quick changes and tricky cash flow is
one its threats.
 Digital marketing cannot raise its
revenue according to L'Oreal
expectation.
 New entrance in filed of cosmetics
brands.
With the help of analyzing strength, weaknesses, opportunities and threats company will
easily manage its business activities and functions effectively that help to build up multi channel
capabilities in their luxury and active cosmetic division.
Step 2: Establish Digital marketing goals: L'Oreal want to increase their sales for
luxury and active beauty and cosmetic products that will support in raising their position in
marketplace.
S- Specific: Raise revenue
M -Measurable: raise 10% revenue to 15%
A -Attainable: Company are capable to attain goals
R- Relevant: It goes up to the end
T- Timely: 1 year
Step 3: Define marketing strategy: Organization need to generate more profit for that
they have to apply some marketing strategy that help to achieve its desired goals and objectives
of business. Promotional strategy is one of the best way in which company will increase profit
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margin on its luxury cosmetics division. Segmentation to its target customers before promotion is
one of the best things where company now who they want to address, its main target is women
under the age of 19 to 35 in UK. They need to build up its position in market place where people
feel pressure and attract towards them and not its competition.
Step 4: Digital tactics and strategies: L'Oreal want to make effective plans that help to
manage its digital marketing activities and support to build up multi channels chains. They need
to increase revenue and raise it more than 10%. Email marketing, social media and marketing
campaigns are one of the better strategies that help to gain competitive advantages. Company
must invest in digital marketing more than now which help to raise 10% unto 15%. They make
effective plans of marketing that achieve its desired goal and objective. By building multi
channel program firm are capable in division of luxury and active cosmetics products.
Step 5: Measuring results: Designing and implementing is just not enough for L'Oreal
they need to measure their strategies by using dubbed cockpit tools that help to measure it
productivity of digital media investment so it will see what is working in present time. Analyzing
the results company will make another plans to get rise more in cosmetics industry. They have to
measure every activities for earning ROI according to their expectations.
LO 4
Methods for measuring and monitoring digital marketing
Measuring the effectiveness of digital advertising is very essential for L'Oreal that help to
know about its brand image and position in marketplace as compare with others. They have to
evaluate every activities of digital marketing using dubbed cockpit that help in the process of
evaluation. This tool develop with cloud business Domo, allows company to have clear view on
what's beneficial and what's are not working. It tracks more than 20,000 data sources in real time
to consider performance across digital media form their own sites to You tube and Instagram.
According to the objectives' organization want to increase it revenue more than 10% which is
possible through social and digital media.
KPIs was another tool of performance measurement it helps to evaluate success of
L'Oreal and particular activity such as projects, products, marketing and other initiatives. It
focuses on overall productivity and profitability of company (Personal and et.al., 2014). KPI
stands for key performance indicator it is valuable for company for achieving its goal. Before
using this tool organization need to understand their objective which help to get best results. It is
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a form of communication that abide by rules and practices as any other type of communication.
Change in digital marketing create complexity in business world that make impact on company
profit margin. Thus, to overcome with this issue organization quick find the best way to test and
experiment campaigns and capabilities to scale what works. In this way they avoid mistake of
bountiful its marketer targets for how much they must invest in channels, instead permit them to
invest in field that give most ROI. In industry there are many debates on digital marketing
working that make barriers in success of business. By developing or using KPI and cockpit tool
company will monitor effectiveness of digital marketing action.
Key performance indicator is very beneficial for organizational growth and competitive
advantages that they garb through measuring benefit and effectiveness of DM. L'Oreal objevtive
is to raise sales revenue of luxury and active cosmetics products. KPI tool help to achieve target
of organization and allow them to become profitable.
CONCLUSION
The present report is discussed about digital marketing system that help to gain customers
attentions and raise profit margin of L'Oreal. It has been concluded that organization promote
their cosmetic and beauty products through advertising and using digital marketing program that
help to raise its position in marketplace. It also discusses that company face many challenges in
industry like rising competitors that make barrier in its growth. This study discusses that stores
presence is more beneficial as compare with digital existence which increase profitability and
productivity of firm. Furthermore, it covers all the points in which discuss that KPI and Cockpit
tools are effective for company where they find or measure the effectiveness of digital
marketing. This report discusses Promotional and advertising strategies and digital marketing
plan that define the objectives of business and include strategies and tactics that contribute in
growth of firm and also in its profitability more and more.
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REFERENCES
Books and Journals
Järvinen, J. and Karjaluoto, H., 2015. The use of Web analytics for digital marketing
performance measurement. Industrial Marketing Management. 50. pp.117-127.
Kannan, P.K., 2017. Digital marketing: A framework, review and research agenda. International
Journal of Research in Marketing. 34(1). pp.22-45.
Leeflang, P.S. and et.al., 2014. Challenges and solutions for marketing in a digital era. European
management journal. 32(1). pp.1-12.
Personal, E. and et.al., 2014. Key performance indicators: A useful tool to assess Smart Grid
goals. Energy. 76. pp.976-988.
Stephen, A.T., 2016. The role of digital and social media marketing in consumer
behavior. Current Opinion in Psychology. 10. pp.17-21.
Stone, M.D. and Woodcock, N.D., 2014. Interactive, direct and digital marketing: A future that
depends on better use of business intelligence. Journal of Research in Interactive
Marketing. 8(1). pp.4-17.
Tiago, M.T.P.M.B. and Veríssimo, J.M.C., 2014. Digital marketing and social media: Why
bother?. Business horizons. 57(6). pp.703-708.
Yadav, M., Joshi, Y. and Rahman, Z., 2015. Mobile social media: The new hybrid element of
digital marketing communications. Procedia-social and behavioral Sciences. 189.
pp.335-343.
Yasmin, A., Tasneem, S. and Fatema, K., 2015. Effectiveness of digital marketing in the
challenging age: An empirical study. International Journal of Management Science and
Business Administration. 1(5). pp.69-80.
Online
How L’Oréal drives marketing effectiveness. 2018.[ONLINE].Available
through:<https://www.marketingweek.com/2018/07/03/loreal-drives-marketing-
effectiveness/>
Digital Marketing Plan. 2019.[ONLINE].Available
through:<https://www.wearemarketing.com/blog/a-step-by-step-guide-to-structuring-a-
digital-marketing-plan.html#>
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