International Marketing Strategies for L'Oreal Company

This report discusses the meaning of international marketing, key concepts, and rationale for L'Oreal to market internationally. It also describes various routes to international markets, marketing strategies, and how L'Oreal should adapt their marketing strategies for different international markets.

International
Marketing

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................4
Illustrating the meaning of international marketing and explaining the key concept and the
rationale for Lo'real company to market internationally.............................................................4
Description of the various routes to international market which L'OREAL can adopt which
route should company adapt and why and Further elaborating the challenges and opportunities
of the L'Oreal organisation..........................................................................................................4
Explaining the many international markets that a firm can enter, also to evaluate the key
criteria and the selection process.................................................................................................6
Elaborating different marketing strategies with example available for L'Oreal company and it
includes the pros and cons of every strategy mentioned.............................................................7
Critically evaluating how L'Oreal company should adapt their marketing strategies for
different international markets....................................................................................................9
Overview of the key arguments of global versus international market and a circumstances in
which L'Oreal should adopt the about the market.......................................................................9
Investing the how the product, price, promotion and distribution approach affects the L'Oreal
in the market..............................................................................................................................10
LO4 (Covered in PPT)...................................................................................................................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
International Marketing is the process which undertake the marketing activities from more than
one country. This is also known as Global Marketing. This designs the marketing mix, its
components are promotion, price, place and product globally and it is also made according to the
needs and preference nation wise. It consists multiple borders of services and products among
more than two nations. Economic transactions includes skills, individuals and capital which aims
international manufacturing of services and products like banking, insurance and finance. The
elements of international marketing are quality of goods, marketing goods and services in
international market and many more. L'Oreal company is an French personal care company there
headquarters in Clichy, Hauts-de-seine, this company is registered in Paris office. This company
is largest cosmetics company of the world and this has also develop many activities in the field.
They concentrate on products like Skin care, make-up, hair care and perfume. This report states
the international marketing and marketing plan and process and this report will also describe the
pro's and con's of internation marketing(Agwu and Onwuegbuzie, 2018). In recent time company
strategies are based its expansion in the market of Paris. The enterprise is further planning to
grow its company's business in order to have better understanding in different policies and
relations of other countries. This report will also explains that the business can spread and
enlarge its roots in the international market.

MAIN BODY
Illustrating the meaning of international marketing and explaining the key concept and the
rationale for Lo'real company to market internationally.
Internationalisation of any business or company helps to build the image and brand value of the
enterprise. The word internationalisation means expanding the business services and products
outside the boundaries of the domestic country. In simple words, the goodwill of the firm is
contributing in the maximisation of profit and it also changes the perception of the consumers
and client towards the firm or organisation. It also helps in in the establishment of the company
with a different and new approach which eventually helps in creating value of the company in
the eye of the rivalry firms as well as the clients(Samiee, 2020). When the business or any
company decides to expand its services or to go to other states and open more stores they require
to follow the different regulations and rules and have to go through various formalities which
includes, licensing policies , issuance of license, social affairs, sanctioning of the state from the
government, demand of consumers and market needs etc. As there is no ease in constitute the
business in different countries whether in terms of expanding the existing services of the
company or establishing a new firm.
Rational in expanding the firm in the international market-
 Access to new talent- This is also the reason for the selected company to move their
business in the global market. This brings many advantages of the enterprise to the
company which helps in management of the company and get the access over many
talents of the company.
 Increase the Profit- Primary and main reason for the running of the company L'Oreal
has a chance to access to the new targeted market and gain advantage over many of
consumers which will increase sales and gain more profit.
Description of the various routes to international market which L'OREAL can adopt which route
should company adapt and why and Further elaborating the challenges and opportunities of
the L'Oreal organisation
If the company is going globally, there many different types of modes of entry in the recent
market by which the expansion of the business can take place. Various Components of
international expansion are:

 Establishing- There is another division and further branch is been created into the other
country to work on many functions of the organisation like processing, standardization,
packaging and selecting goods and gathering them according to the want and needs of the
market.
 Join Venture and collaborations- This is the process which includes the many other
companies and or brands to want to make a one and single company this help in
satisfying the international needs and wants and the production on the large scale which
meets the demand worldwide and customers living in the domestic as well as in many
different countries.
 Licensing and arrangements- it is very crucial and important to study the license
policies of the countries in which the organisation needs to expand its business. By
understanding foreign countries licensing arrangements, this makes easy for the firm to
establish a precise procedures so that the firm can be protected from the future
discrepancies.
By the above discussion this can be identified that in order for the expansion of the business in
the market of Paris, the L'Oreal company can adopt the licensing option. This option of
expanding the business will be suitable for the business(Kozlenkova, Palmatier and et,al., 2021).
This can help L'Oreal do not need to invest in any other country and along with this they are not
responsible for any loss. Another reason behind this entry model is the person who take license
form the licensor has all the knowledge about the domestic market.
Opportunities and challenges-
In international market, one of the most important opportunity can be that they can further
expand there business in the market of Paris, can also attain growth to sustain in the international
market. The Paris is the fastest and developing country across the border of the globe and it has
the biggest opportunity for the company is the young generation who uses cosmetic products
more and more. This result in the high demand of the products of the company in which they are
dealing like Hair colour, shampoo etc. on the other hand, the challenges which is faced by the
firm s the regulations and rules which are made by the national government and barriers and

trade policies too. This has become essential for the company L'Oreal to find out ways and more
likely solutions to dominant the market (Paul and Mas, 2020)). The company's main focus is to
be paid by enterprise to enlarge the living of the customers by offering them quality and good
products which helps them to build good brand image in the targeted market.
Explaining the many international markets that a firm can enter, also to evaluate the key criteria
and the selection process
The process of selecting the market plays an crucial role in marketing. The market can be
divided in various levels such as the national market, international market, local markets etc.
There are various methods that can be used in this process, this is all set with the goals and
verbal analysis of an individuals.
 Marketing objectives at international level- The first initial basic step to enter into the
global market is to establish the objectives and goal of the company. However, when
there is crystal clear view for the objectives, then business can be managed and work
more precisely in grabbing more opportunities for the business. Moreover, the company
L'Oreal can also analyse many marketing opportunities under this step according yo the
governmental law.
 Factors affecting the selection of the market place- There are many various factors that
will affect while taking decision for the targeted market of the organisation. This includes
the management of the company should assess the many different factors like the cost,
market place and demand involved during the selection of the market of the business
organisation.
 Prime screening of the market place- The major element which is related to the prime
screening is lower the possibility of the targeted market place. This means that it will
only assess that market that has demand of the product of the company which are
cosmetics and hair products which is produced by the L'Oreal company.
 Short list of the selected market place- The initial step of the preliminary screening can
be establish that which market is appropriate and best for the business in order to keep
growth and development in organisation(Farrell, 2020). Moreover, after the verification,
the company should shortlist the major areas of the market where the firm can start its
business with ease, growth and success. Test marketing- This involves that the businesses

must access the test on the mark place it has selected in the earlier steps. Moreover, it
would also help the management to see the clear results of the chosen market place of the
company. This basically gives the feedback to the management of the company regarding
its decision of selection.
 Evaluation and selection- This is the last step that work onto to evaluate the results that
come from the above steps. So, in this firm should evaluate all the relevant opportunities.
Moreover, after evaluation there should be selection of the business. All the areas and
places is related to the surrounding of the organisation.
 Test Marketing- This involves the firm must go through the test on the market place
which is selected in the earlier steps. However, this would helps the management to
watch the clear result which is chosen by the organisation. This basically gives the
feedback of the function of firm regarding all the decision of selection.
From the discussion done above this can be evaluated that company can effectively earn profit
as well as able to sustain the growth of the global market(Sinkovics and Sinkovics, 2020). The
best opportunity which are present for L'Oreal company can be further expansion their business
in the market of many countries like India. The country like India has more rural areas they can
expand more for High demand and goodwill. The company's brand image can be increased by
lowering there price and expanding more in rural areas as these areas has more population than
other.
Elaborating different marketing strategies with example available for L'Oreal company and it
includes the pros and cons of every strategy mentioned.
Market strategy made of entering the marketplace is basically the planning for services and
goods into the new targeted market. The market entry strategies is outlines all the firms overview
and goals of the market targeted. The different entry market strategies are discussed below;
 Export- The element export can be defined as when one country deliver services and
goods to other country. This involves currency between the countries which are involved
in the international trading. However, export increasing the scope of globalisation all over
the globe and increases the goods that are exporting the merchandising of goods of the
company.

Pro's of Export
 It helps in enhancing the international trading that affects directly impact the economy of
the country.
 It increases the job opportunities for the individuals who are involved in the international
business. Moreover, the person would enjoy the goodwill and would earn more profits in
the nearer future. Furthermore, it is just like franchise(Katsikeas, Zeriti and et,al., 2019).
This is less expensive and cost effective in the present market.
Con's of Export-
 This can result into lack of control in the business by the owner of the exported goods
because of the various conditions where the owner can fail to satisfy the wants of the
costumers.
Licensing- The licensing is the way from which business can be operated in many other
countries. Through licensing the other person gets the opportunity to operate the same business
that has a good brand image and a set goodwill and can earn more profit in the market. The
person enjoys the more profit in nearer future because of the brand image and goodwill of the
firm. Furthermore, it is similar to franchise but more less expensive and cost effective in the
recent market.
Pro's of Licensing-
 This decreases the royalty of the business.
 This has reduced the risk of operating the business relationships.
 Very cheap in nature compared to other businesses.
Con's of licensing-
 This increases the competition in the market.
 The limitation are involved in specific goods and hallmark that are produced by the
manufacturer.
Join Ventures- The join ventures is the type of industry which has more than one owner of the
organisation. Generally, there are two or more owners of the business in the firm of joint
ventures. However, the liability is in hand of both the owners(Tien and Chi, 2019)(Samiee ,2020)

(Boso, Amankwah-Amoah ,2018) Although there are aso various procedures that is followed by
the firm.
Pro's of Join Ventures-
 The liabilities is shared by the owners of the organisation in the business process.
 There is advantage of sharing risk in the business.
Con's of Join Ventures-
 There can be conflicts between the owners of the firm in the process of Join Venture.
 There is multiple control over the functioning of activities of the organisation.
Critically evaluating how L'Oreal company should adapt their marketing strategies for different
international markets.
 Nature of the competition- Competition in the marketplace can affect the development
and growth of L'Oreal product so it very important for the firm's management to have a
proper strategies against their competitors. These strategies helps them to eliminate the
difficulties.
 Infrastructure Facilities- This plays an important role for the organisation to go across
the world. The market area precisely evaluated by the management of products of the
firm L'Oreal which results to understand the market and make a plan for the effective
operations. With the help of techniques and tools firm analyse the market properly. This
assist the company to produce products as per the requirements of the market.
Overview of the key arguments of global versus international market and a circumstances in
which L'Oreal should adopt the about the market.
The terms international marketing and global marketing sounds very similar to each other.
However, both can be different in nature and have different stages in business operations.
Global Market- It refers where all the marketing operations are carried out from the firm's
headquarter while selling services and goods across the globe in various different countries.
L'Oreal company should adopt to target every type of consumers in the marketplace(Lähn, 202).
This brand has a excellent goodwill so they can lower there pricing for every segment of
costumers and can also focus on different culture of the different country.

Whereas, International Marketing is understood as going global, it establish the subsidiaries in
the respective local market of different countries and it execute suitable marketing strategies.
L'Oreal can be more People-centric company, equality in gender products of this company can
focus on Male products too. This brand specify more for women products like shampoo, hair
colour etc.
Investing the how the product, price, promotion and distribution approach affects the L'Oreal in
the market.
These elements of Marketing Mix can be classified;
Product of the Marketing Mix can be divided into different products of the company L'Oreal, as
it includes lip liner, lipstick, polish remover, hair care products etc. All these products are
produced and innovated in different size and price range and these products are properly testes
according to the international testing standards without harming any type of creature or animal in
process.
Pricing element of Marketing Mix can be defined as the consumer goods divided and distributed
in retail channels by which it is available in the mass marketplace. As the result there sales
increases and also receives huge profit from the division(Pham, Hoàng and et,al., 2020). The
products which are at salon there Price are less then Luxe division products that are available at
the cosmetics stores and supermarkets.
Promotion of this international brand has been done by various levels in different countries.
This company has an aggressive marketing mix promotional strategy, this focuses on young
achiever, independent and powerful women globally. Its slogan is also very strong “because we
are worth it”.
Place/ Distribution strategy is based on different product division that are available for the
consumers across the globe. L'Oreal has vast distribution network which has a strong market
presence. The company has acquired many organisation globally and also increase there brand
presence. They have stores in 130 countries and in 5 continents and various department stores,
retail stores, salon stores and pharmacies etc.

LO4 (Covered in PPT)
CONCLUSION
From the above report this can be concluded that it is very important for the management
department of the organisation to analyse and formulate the different types of elements and
components to effectively enter into the global market. By going across the world, the company
can have many different types of advantages in the international market that is increasing profit
and sales. The report also concludes the different types of modes of the market and market
selection process along with the critical evaluation and it also have some key evaluation for the
company. Which elaborates the EPG model and comparison of international market,
multinational market and Meta-national market.

REFERENCES
Books and Journals
Agwu, M.E. and Onwuegbuzie, H.N., 2018. Effects of international marketing environments on
entrepreneurship development. Journal of Innovation and Entrepreneurship, 7(1), pp.1-14.
Samiee, S., 2020. International marketing and the internet: a research overview and the path
forward. International Marketing Review.
Kozlenkova, I.V., Lee, J.Y., Xiang, D. and Palmatier, R.W., 2021. Sharing economy:
International marketing strategies. Journal of International Business Studies, 52(8), pp.1445-
1473.
Paul, J. and Mas, E., 2020. Toward a 7-P framework for international marketing. Journal of
Strategic Marketing, 28(8), pp.681-701.
Farrell, C., 2020. Do international marketing simulations provide an authentic assessment of
learning? A student perspective. The International Journal of Management Education, 18(1),
p.100362.
Sinkovics, R.R. and Sinkovics, N., 2020. The Internet and international marketing–from trigger
technology to platforms and new markets. International Marketing Review, 37(3), pp.437-446.
Katsikeas, C., Leonidou, L. and Zeriti, A., 2019. Revisiting international marketing strategy in a
digital era: Opportunities, challenges, and research directions. International Marketing Review.
Tien, N.H., Phu, P.P. and Chi, D.T.P., 2019. The role of international marketing in international
business strategy. International journal of research in marketing management and sales, 1(2),
pp.134-138.
Samiee, S., 2020. International marketing and the internet: a research overview and the path
forward. International Marketing Review.
Boso, N., Debrah, Y.A. and Amankwah-Amoah, J., 2018. International marketing strategies of
emerging market firms: Nature, boundary conditions, antecedents, and outcomes. International
Marketing Review.
Pham, T.T., Nguyen, D.T., Ðào Thi, L.C. and Hoàng, T.L., 2020. Preparing Vietnam for new
rules on international market: Preparing Vietnam for new rules on international market (Vol.
257). CIFOR.
Lähn, L.A.S.I., 2021. A Strategy to merge, a comparison of LVMH Moët Hennessy-Louis Vuitton
Se & L´ Oréal SA (Doctoral dissertation).