INTRODUCTION In today's competitive market, digital marketing is commonly used by companies to capture broad market share. It is a term which is used to promote products and service through digital technology, which includes internet, smart phones, advertisement through displays. Digital marketing also known as online marketing or sometimes internet or web marketing. This present report is based on L’Oreal which was founded by a chemist, Eugene Schueller in the year 1909 (Chaffey and Ellis-Chadwick, 2019). It is a French personal care multinational company, headquartered in Clichy, Paris. L'oreal is one of the largest leading cosmetic brand across the world with the Indian market share of approximately 15.8 billion and is continuously increasing. In this project, understanding of opportunities, challenges and impact of digital environment on organisation have been discussed. Along with this, with respect to L’Orealcritical assessment of digital and store presence have also been included.At last methods and planto evaluate the effectiveness of digital marketing of company.At last methods and planto evaluate the effectiveness of digital marketing of company. TASK 1 Environmental analysis of L'Oreal digital presence, opportunities, challenges and impact digital environment in cosmetic industry. Digital Marketing is a concept of modern marketing, as here companies promotetheir brand andproduct or services by using digital channelsfor reaching to endnumber of customers. Along with this, there are various form of digital channels such as search engine, content marketing, websites, social media, mobile app and so on. Their main motive is to acquire more new customers and provide services to the existing customers. Also it helps in developing a customer relationship by E-CRM and marketing automation (Chaffey and Patron, 2012). In context of L'Oreal, they adopt concept of digital marketing for increasing more customers towards their product or services and also for enhancing their profitability. Now a days, people used digital environment for identifying internal and external factors of an organisation, which affect the organisational performance. Along with this, in L'Oreal, environmental analysis is identified by using PESTLE analysis. As through PESTLE it describes about the different factors 1
such as political, economical, social, technological and so on in the context of L'Oreal. This analysis are described as below: PESTLE Analysis of L'Oreal- Political Factors:In this factor includes governmental policies and rules in which companies have been working. In context of L'Oreal,should to follow governmental rules and policies of different countries, as they are providing various product and services to their customers at global level (Chaffey and Smith, 2013). Along with this, L'Oreal manufacturing company is in Paris so they have to follow the governmental policies of France because it directly affect a companies growth and image. They transferred an information or messages in all over the world to their potential customers by using digital channels. Information should be clear and accurate which create a direct impact on health and safety of individual persons. Economical Factors: This factor include exchange rate of the operating country. Along with this, in economic factor recession period plays a very important role, as the price of products goes down and demand of products goes increases. The price of the product depends on various factors which includes regions, substitute of the product and many more. In relation to this, fluctuation in price of product and service creates direct impact on L'Oreal company. As it is a very important element in the expansion of beauty and cosmetic industries such as L'Oreal. Social Factors:In this factor various elements are included such as, attitude, belief and values of every single individuals(Jobber and Ellis-Chadwick, 2012). . In context of L'Oreal, it is a very important factor as, messages or information which are provided by the mode of digital channel should be accurate or true. In addition to this, their main motive is do not hurt the sentiments or emotions of every single individual. Technological Factors:Now a days, technology plays a crucial role in an organisation. As technology helps in innovation and searching information regarding anything which enhance the growth and profitability of a company. In context of L'Oreal, digital marketing helps in expanding a business at global level which attract more customers towards their brand. Along with this, L'Oreal focuses on research and innovation to drive competitive advantage in the market and make a positive image of their brand at global level. Legal Factors:It is an external factor in which it directly affects the image of operating businesses and behaviour of customers at market place. In context of L'Oreal, they have to 2
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maintain a graph of their success, in which they have to fulfil all the legal formalities of the operating countries. Further with this, it is important for L'Oreal to follow fair packaging and labelling Act (FPLA) andFederal Food, Drug, and Cosmetic Act (FFDCA)to ensure that no harmful element have been used in their products which helps to ensure safety among the customers(Kannan, 2017). As they are opting for innovation in their technology, they need to take into consideration different laws which are associated with this factor. Economical Factors:This factor is also known as ecological factors such as variables regarding the physical environment on earth. Their main motive is to follow global environment safety laws which makes the planet beautiful and pollution free.In context of L'Oreal, they opt digital marketing, which means to operate their business activities at global level as, environment will not be effect. Further with this, L'Oreal bring eco friendlily packaging for their product so, that environment become more healthier and stronger. InL’Oreal, it is necessary to follow these factors effectively, for operating their business activities and strategies at global level in effective manner. Opportunities in Digital Environment:-L'Oreal is one of the best beauty and cosmetic company and they have various opportunities for expanding their business at global level. Along with this, they used digital channel for promotion their brand and product in the market. Like, they provide information oradvertise their product on social networking sites as, it helps in garbing an attention of consumers. Challenges faced in Digital Environment:L'Oreal can choose big data solution which will help them to arrange information regarding their products, services, employees and customers.They can use various software like Google Cloud Platform, Microsoft big data solution, Oracle big data solution and so on(Kaufman and Horton, 2014).Their are various challenges which are faced by L'Oreal in digital environment are given as below: Understanding behaviour of digital customers:Now a days, customers are very used to with digital environment, as they assume companies provides many offers to them which enhance product or services. This concept motivatesL'Orealto generate new innovative ideas and approachers for their product or services, which helps them to fulfil the need and requirement of their customers. Finding right team:L'Oreal choose digital marketing for expand their business at gloat level, as they have to required team right team for providing information 3
or messages about their product or services to their potential customers. For effective team of L'Oreal they have to use modern marketing concept as, it will helps in to enhance profitability and growth of an organisation. Impact of Digital Environment:In context of L'Oreal, digital marketing can create a impact on beauty and cosmetic industry. As it can be described as below: New platforms:L'Oreal are usingvarious platform of social media such asPinterest, Twitter, Instagram, Facebook and many others for promoting the brand. Along with this, sometimes it is difficult for their organisation or brand to find out which they should more focus(Kingsnorth, 2016).. Brand should use these kind of platforms to promote their product at global level and react to at their target customers. Power of Influencer:Now a days, social media can create a impact on customers mind as they can easily promote their brand or products on it. Also it will helps in providing a positive outcome which enhance profitability. In context of L'Oreal, they have power to influence or convince a customersto purchase their product or services by using digital channel. L'Oreal should to find a good influencer whose words can easily capture by the heart and mind of audience. TASK 2 Critical assessment of business of L’Oreal by comparing digital presence to stores presence. Most of the companies started opting various digital marketing techniques. With the help of which company have seen growth in their services and brand image. There are various digital marketing channels which consist of social media, emails, websites, search engine and many more by which any organisation can connect with their potential and existing customers. Digital media platform provides customers a medium through which they can openly give their thought or opinions and share their views about the products and services. Along with this they have the power to give suggestions related to products and how they can improve their services. Also consumers can help the company, how they can extend their product line(Kotler, Kartajaya and Setiawan, 2016). On the other hand, in case of offline services, customers feel to switch to other brands as they have no medium to express their views and opinions about a particular product. In the present context, L’Oreal is a cosmetic brand and they need to take advantage of digital marketing. With the help digital marketing platform, company can understand the point of view 4
of consumers in an effective manner. On the other hand, it becomes quite difficult for consumers to point out others weakness, when it comes to face to face interactions. In digital and traditional marketing there are various difference. Some of the basic differences are as follows: BasisDigital MarketingTraditional Marketing Potentialfor growth There exists several possibility to anexposureofthedigital marketing.Organisationmust directcommunication from smart- phones and emails which are easily imponderablebythem.Withthe help of this technique company can reach any number of people and canpromotetheirbrandeasily (Miller,2012).Byoptingdigital marketing L’Oreal can create brand awareness and tell them about their latest services. Rarelyithappenswithin marketplacewherenewsspreads like a fire. If news is concerned with some negative impact then it can spread but if it shows any positive response then it do not. In case of Digital marketing, it is heard almost every day. Efficiencyfor developmentof brand Digital market is a channel with the help of which brand image of a companycanbedeveloped.In today's competitive world, it is very importantforeverybusiness organisation to be on internet or have its own website. No matter whethercompanyprovidestheir services or products online or not. Withsupportofthedigital marketing, people canwell doing ananalysisofwhatthefirms mainly offers to them or in reality Incontexttodigitalmarket, traditional brand have less ability to showcasetrueimageoftheir recognised brand or offerings to its buyers(RoyleandLaing,2014). Traditionalbusinessarehighly limited to thecommon extentor surface.Also,theyhavelesser ability or efficiency to pump money intotheprocessofmarketingor promotion of the goods or services. 5
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whatcustomer'sislookingto buyer.Peoplecanwellled comparisonbetween given goods or services given by two business firms or Co CostIn context to traditional marketing methods,costisquitecheap. Reasonbehindthisiscompany hardlyadoptanyadvertisement medium like newspaper, magazines orTV.Whileusingdigital marketing these companies need to put some extra efforts(Royle and Laing,2014).Digitalmarketing requireslessinvestmentbut provideseffectiveresultsas compare to traditional marketing. In traditional marketing promotion of a productis performs by using of theelectronicmedianamedas radio,e-newspaper,television which are going till now effectively and properly. It is higher costly as compared to the digital marketing. Traditional marketing is demanding periodicalpumpingoffundsor money into the process for longer benefits. Relieveof dimension By using digital marketing method L’Oreal can easily create its brand image. L’Oreal has been appeared on every customer's system, many timescustomerclickonthat message and check what products and services they are offering to them. Also this medium help them to identify how many times user visited to their website. In traditional marketing, it is not easyforacompanytoevaluate marketingperformance.Reason behind this is company is unable to determine how many people listen orsawthereadvertisementson television,newspaper,radioor through many other sources. It is quite difficult for a company like L’Oreal to calculate such activities andanalysetheiractualbrand recognition at market place. 6
From the above discussed points, it can be analysed thatfirm commonly exercise digital campaign which consider usage of the social media, emails and other websites to promote their commodities into the profitable manner(Ryan, 2016).In current scenario, it is compulsory for face decorative industry such as L’Oreal to be progressive on the digital level when company don't want to sale its commodities through online sources.Company should have attractive online advertisement so that customers can easily attract towards their brand. Along with this company have their own websites, with the help of which customers can easily compare and differentiate what they offer to their customers, which is different from their rivalry firms. If companies start adopting such mediums, it is quite possible to attract large number of people within short period of time (Taken Smith, 2012). TASK 3 Planing for an organisation of digital marketing activities for the L'Oreal Digital Marketing Plan– The marketing plan of L'Oreal is made in respect of cosmetic products. By analysing their performance in the last years, they want to integrate the strategy of digital marketing because this factor has been considered in the present case scenario. Therefore for this, team of marketing and management of L'Oreal has formulated the plan for preferring the marketing by digital media. This is done and adopted this strategy to gain more competitive advantage as their other rivals are also choosing this strategy only. Business Initiative– L'Oreal has maintain their goodwill in the marketplace from a long period of time. Therefore, it is crucial to make certain changes in the functionality of their products which they are carrying out. L'Oreal is using the traditional strategy, but in today time it is essential for them to use the digital media strategy as this can help them in gaining the attention of more customers(Chaffey and Smith, 2013). Therefore, it is main reason, L'Oreal has adopted the strategy of digital marketing. Situational analysis- Strength–Themainbenefitofusingthe strategyofdigitalmarketingisthe advancement and enhancement of technology. This is necessary of the L'Oreal to grow and enhance their business according to the market Weaknesses –The major drawback of using this strategy by L'Oreal is that they require funds for providing the training sessions of the strategy adopted by them to their employees, as in the previous year they were adopting the 7
requirementsothattheycansustaintheir business in the market for long period of time. Manypeoplesarefondoftheproductsof L'Oreal, as their products are easily available to the customers. traditional strategy so they will not able to adoptthedigitalmarketingstrategyeasily, aboutwhichtheydon'tknowhavemuch information. Opportunities –By adopting the strategy of digital marketing, the firm L'Oreal can be able to gain the attention of more customers as to representtheproductonmediaandonline marketingasgainthemoreattentionof peoples. Along with this, the people can also find the L'Oreal products better by comparing them with the products of their rivals. Threats –each company has the major threat of its competitors. In the similar way, L'Oreal is also having the threat from the other firm which is dealing in the same sector and had adopted the same strategy for the promotion of products. The main competitors of L'Oreal are Nivea, Lakme, etc. Targeting the market along with the customers-Mainly, the L'Oreal company is headquartered in France but the firm is rendering their services in all over the world, so that they can gain the attention of more and more customers. The clients of L'Oreal are exploredinthewholeeconomy(JobberandEllis-Chadwick,2012).Thedigital marketing strategy has been adopted by the L'Oreal in order to saves the time as the traditional strategy which was used by them in previous year was very time consuming and too costly to afford, along with this, this strategy was not enough to gain the huge pool of customers. The main reason of using this strategy is that they want people to read each and every new of the products of L'Oreal, and this can be possible only when this news is displayed on the digital tools, which mostly peoples used in their daily life. This is not required by L'Oreal to target their customers as they are already dealing and running their business in all over the world, so they can target something by modifying their products and by making their products new(Kannan, 2017).. Generally the targeted customers of L'Oreal are the teenagers and adults girls and women which are very fond of cosmetic products.Budget– To adopt the digital marketing strategy, the L'Oreal firm do not need to pay the higher cost as this strategy is has the moderate price which can be affordable by L'Oreal. 8
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Also, the budget is to be used in hiring the experts who have adequate knowledge about the concept of digital marketing. Along with this, they also require budget of around £30000, for providing the training sessions to their staff members so that they can easily be able to know about the strategy of digital marketing.Marketing Strategy– L'Oreal is using the market penetration strategy in which the existing products is to be sold in existing market in order to gain the higher market share, by this marketing strategy, L'Oreal can be able to gain the attention of large number of customers from all over the world. The customers are totally provided by the existing and new luxury cosmetics products by L'Oreal as their demand is the products which suits them. In this strategy, they will decrease their prices as compare to their rivals and then also they are gaining more profits. Therefore, this enable them in attracting the huge number of customers and helps to enhance their market share. Marketing channels– L'Oreal is using the different digital media channels like Facebook, Twitter,Instagram,etc.,todeveloptheeffectiverelationshipwiththeirpotential customers. Social media is one of the most important source of digital marketing, by which L'Oreal can upload the details about their products on their websites and on other different media channels so that more and more customers can see that and get attract towards their products. Along with this, they can also get the reviews of their customers about their products, and they will get to know on which product they have to improve more. TASK 4 Main methods of an evaluation and observation of an effectiveness of digitalisation To evaluate, touchstone and supervising an effectiveness of the digital selling, in response there are several methods exists.In context to L’Oreal in terms of luxury and active cosmetics division, there are some methods which are as follows: Evaluation of effectiveness of digital marketing:There are various strategies which have been developed by L’Oreal for smooth running of their operating activities. It is very important for every company to evaluate its strategies on a regular period of time. In context to cosmetic industry, it can be carried out in several ways: 9
Identification of the goals and objectives of L’Oreal’s digital marketing:It is one of the foremost stages for venture or firm. Initial stances of a venture interest is to determine goals with the purpose of which different strategies are being developed. L’Oreal consits of the digital campaign objectives are: Number of consumers who are following L’Oreal on different social networking websites. Number of positive as well as negative reviews of customers, which are left on L’Oreal websites. If goals or aim of the company is already set, then it is very important to analyse whether they are able to achieve those targets or they need to modify their strategies(Tapp, A., 2014). With respect to L’Oreal's both active and luxury products, managers needs to identify weather existing strategies help them in accomplishing their present goals. If it is required, then company modify their strategies in order to achieve their new objectives.Re-examine profile of target customers:It is necessary for an institution to carry digital movement, to measure their own buyers. Company need to analyse different types of the people would reach to the L’Oreal for offerings both the active and luxury products.In case, L’Oreal would targets young women to the Facebook but they discovers that maximum likes are from middle aged women(Thomas, 2014). In such case company must re-examine there elements.Take into consideration digital presence:It is essential for L’Oreal at the time of re- evaluating their customers, whether they are using appropriate digital medium or not. For example, L’Oreal target women between the age of 18 to 30 years for their active products. It is very important for the company to be active on social networking sites which is mostly used by every person. Evaluation of messaging strategies:To release digital campaigns L’Oreal requires to take into consideration to messages they have sent to there customers. These messages are planned to find out: To analyse that how effectively marketing materials of L’Oreal is being shared among audiences. Along with this, it has to evaluate what kind of messages or advertisement attract customers. It includes blog post, text messages, videos and so on. 10
Check digital marketing ROI:Last and final step is to evaluate the overall performance of digital marketing in terms of return of interest (ROI). For this two elements must be analysed. Total amount of investment by L’Oreal in terms of time and funds in their digital campaign. Financial benefits of conversions. Monitoring effectiveness of Digital Marketing: Formonitoring performance in reference to digital marketingthereare various ways used by L’Oreal(Yasmin, Tasneem and Fatema, 2015). Some of these measures are as follows:Is L’Oreal able to engage their customers:Marketing deals with active participation with customers along with maintaining healthy relationship with them. This can be achieved with the help of social media platform by providing them sufficient knowledge and awareness about products and services. Are you providing value to conversation:Marketing manager create some content or catchy tag lines with the help of which they can attract more and more customers. These tag lines must be in decent form, so that they can easily influence with the brand. It is necessary for L’Oreal to bring values, with the help of regular engagement with their customers(Chaffey and Ellis-Chadwick, 2019). Measuring effectiveness of Digital Marketing: Forthe L'Oreal, effectualness of the internet marketing will be measure with the helps of the several ways are as follows: Total visits on site:In context of L'Oreal, this concept helps in getting a rough idea about the drive traffic. In addition with this, it says that if number of visitors on site goes decline then they have to find out the solution of their problem and also their is need of improvement in their strategies. Traffic by channels:For the L'Oreal, given segment is linked to an single person who is doing an actual marketing events. In this, different channels of the market campaign is as follows: a)Direct visitors:They are those persons who already knows or aware about L'Oreal and their product or services. They reach site by typing URL into web browser and get all information about it (Taken Smith, K., 2012). 11
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b) Search:They are those individuals who have some queries regarding their brand or services and they sent their queries by browser. c) Referrals:They are those individuals who are searching different product on different sites but by clicking on some other link they also get products of L'Oreal entered into other websites. Bounce rate:It means there are many people who are visiting on site but if they aregoing return without getting any meaningful action(Chaffey and Patron, 2012). Along with this, if bounce rate goes high then it means there is a large number of fluctuations in digital marketing because of irrelevant traffic source, poor campaigns, weak landing pages and so on. 12
CONCLUSION After discussion of an above assessment, it is ended that for heighten the work of a company process of the digital promotion led out the major critical role. With support of the digital firm can gain more customers, which rises profitability and growth of the company.In given assessment, Pestle technique of the L’Oreal have analysed along with SWOT to develops critical strength, weakness, opportunities and threats of the firm. Comparison between traditional and digital marketing, to evaluate scope of growth with digital marketing is also discussed in this report. Also, evaluation, monitoring and measuring effectivenessofdigitalmarketinghasbeenanalysed.Moreover,marketingplanin reference to luxury and active cosmetic products are also analysed. 13