Marketing Mix for LO'real Organic Hair Oil

This report analyzes LO'real's marketing strategy for their new Organic hair oil product, including segmentation, targeting, positioning, pricing, place, promotion, physical evidence, process, and people. It concludes that the company will launch the product in the lower, middle, and higher income groups and use effective customer relationship management to deliver the right product at the right time and place.

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Table of Contents

INTRODUCTION
In present era the level of competition is very high so it is significant for businesses to
have effective competitive advantage. It helps in developing better values so that growth can be
advanced effectively. In this manner marketing communication is one of the strategy through
which firm can introduce its product and services in the market and gain large customer
attraction. There are several principles and method of marketing through which corporation can
effectively launch and promote its product into market (Yan, 2009). The following report
provided an effective understanding and knowledge about the marketing communication and its
principle which aided in launching new product and services. In addition to this strategy for
segmentation, targeting and positioning of product has been also addressed with respect of
LO'real company.
MAIN BODY
a) Description of the new product
LO'real is one of the famous cosmetic and beauty product Company which offers various
cosmetic products like hair colour, skin care, make up, perfume, hair care etc. Company is highly
focused to deliver the high quality of beauty care product and attract the large number of
customers. Its objective is to earn the maximum profitability and market share which will assist
in becoming the number one cosmetic company in the world. In the present time company is
facing the issue related to less market share and profitability because of the large competition. In
order to face the competition and develop its own brand image in the market it is thinking for
launching new product. By new product development, it can able to bring some innovation and
creativity in the company and again gain customer attraction in the market. In order to fulfil this
objective, cited venture is going to launch new hair care product which have some unique
features and quality (Tadajewski, 2012). Company is going to launch the new hair treatment oil
which is different from the other brand 's oil. This Organic hair oil will suitable for all hair type
and all age men and women except children. This Organic hair oil have contained a unique
combination of the three-traditional oil like almond, coconut and olive. These three oils will
assist in overcome the problem regarding hair fall in the youth people (Wirtz, Tuzovic and
Kuppelwieser, 2014). The range will be created using 6 unique micro oils which penetrate deep
into the scalp and provides natural nutrition to hair with nourishment and care. The main feature
of this new hair care product is that it will provide shine, softness and thickness to customers
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hair. This hair care product will also work as conditioner which add shine, elasticity and softness
in the hair. This new hair care product will available for all the customers because it will be
available at the reasonable prices. A middle and lower income group customers can also
purchase this product. This product has not impacts the growth of hair because ayurvedic raw
material and items are being used in the production. This innovative and creative Organic hair oil
product will provide the complete treatment to the people about the hair problem like hair fall,
hair whitening scalp problem, hair loss effluvium etc (Muhamad, Melewar and Alwi, 2012). All
three oil that is coconut, olive and almond will provide complete treatment to hair of people.
This organic hair care oil product has not any kind of side effect for hair because it will produce
or manufacture by the organic items and raw material. There will not any kind of chemical use in
the process (Yan, 2009). These organic raw material and item will provide complete solution to
the customer regarding their hair problem.
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Illustration 1: LO'real organic Hair Oil

B Analysis of the market for this product
As per the research it has been interpreted that global hair care market is continuously
increasing and this is happened due to high demand for healthy, lustrous and manageable hair
and thus need drives the purchase decision of the customers. In addition to this, the market of
hair care products has enhanced across developing and developed regions owning to increasing
R&D activities for the enhancement of these products. It has been analysed that the global hair
care market is expected developed by US$81.3 bn in 2015.Furthermore, due to the growing trend
in fashion industry and enhance in the ageing population is booming Organic hair oil market at
the international level. As per the research it has been founded that due to the increasing problem
related to the hairs like hair fall, hair whitening scalp problem, hair loss effluviums etc customer
are more aware about to use the healthy and effective Organic hair oil. It demands is
continuously increased ion the young as well as old age people. As below diagram about the data
of Organic hair oil product it has been shown that hair care market revenue is continuously
increased by 2014 to 2022.This is happened due to the high demand of customer regarding to
healthy and long hairs. Organic hair care products are replacing synthetic hair care product (Loe
and Ferrell, 2015). Customer are more aware about the healthy hair and their does not want to
chemical product for their hairs. The demand of chemically clean hair care product has grown
considerably in recent year due to awareness arising in customer about the possible dangers of
harmful chemical used in synthetic hair care products. Global organic hair care market provides
company executive, industry investor and industry participants. As per the study it has been
founded that global hair care market today is worth well over US$ 75 billion. This hair care
market is segmented according to the kind of commodity, process of distribution, region and
dominant competitors in the international level.
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C Description of the strategies for the segmentation, targeting and positioning of the new product
As per the above discussion it has been ascertained that there is very wide scope for the
Organic hair oil product in the UK. Hence, this new idea about the product will aid to Lo'real
company in improving its business performance in the competitive market. As per the research it
has been founded that there is very huge competition among the cosmetic companies in the UK
so as cited venture have faced the issue related to low market share and profitability. In order to
improve business performance and profitability, company is going to launch the innovative and
creative Organic hair oil product which will provide the complete treatment to the people about
the hair problem like hair fall, hair whitening, scalp problem, hair loss effluvium etc. In order to
launch and promote the new Organic hair oil product of LO'real in the market, company requires
to understand the marketing principles and strategies. The major strategies of marketing are
segmentation, targeting and positioning. Segmentation is a process under which entire market is
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Illustration 1: Data of hair oil market at global
Source: Kubacki and et.al., 2015.

divided into the sub market (Loe and Ferrell, 2015). This strategy assists to the company in
dividing the whole market and promote or advertise product and services according to the sub
market. This strategy also aids to firm in understand the needs and requirement of group of
customers and deliver product and services accordingly. There are major four kind of
segmentation that is demographic, geographic, psychographic, behavioural segmentation. In the
demographical segmentation, whole market is divided on the basis of the customers age, gender,
income, education, family size, situation etc. Company delivers the product and services on the
basis of the customer characteristics and their background and needs. (Jaramillo and Spector,
2015) On the other hand in the geographic segmentation, whole market is divided on the basis of
country, state, city, physical location etc. Psychographic segmentation is based on the customers
personal characteristics like behaviour, perception, taste. Personality, sociality, beliefs, value etc.
In addition to this behavioural segmentation based on the purchasing consumption and usage of
behaviour.
In the LO'real company, for promote and sale the new Organic hair oil product in the
market, cited venture will use the demographical segmentation under which entire market will
divide into the small segmentation the basis of age and gender. This new Organic hair oil product
will useful for the women and men but it is not suitable for children's. Furthermore, this product
will available for all income group customer because it will sale in very reasonable price which
both middle and higher income group can easily purchase.
In the concept of segmentation there are various kinds of segmentation strategies like
undifferentiated strategy, focus strategy, differentiated strategy. In the undifferentiated strategy,
company involve in the mass marketing and there is not any segmentation. On the other hand, in
the focus strategy company will involve in the niche marketing under which it focuses on small
group of customers. Furthermore, in the differentiated strategy, firm focused on the two or more
than the two group of customers. In the case of LO'real it will adopt the undifferentiated strategy
under which it will conduct the marketing for the whole market (Goldfarb and Tucker, 2011).
Company will send the same promotional message to every customer and it can use those
channels of communication through which message can send to every one like newspaper, radio,
television etc.
Targeting is a strategy under which company creates various segments within the market
and then devises various marketing strategies and promotional schemes according to the taste of
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the individual of that particular market (Ferrell and et.al., 2014). It is second stage and is done
once the markets have been segmented. LO'real will launch the new Organic hair oil product for
the lower, middle and higher income group customers because this product will available in the
very cheap and reasonable price which every income group customer can easily able to purchase.
On the other hand, positioning is the last stage in the segmentation under which company decides
on its target market and it seeks hard to develop an effective image of its product in the minds of
the consumers. In the case of LO'real, company will sail the Organic hair oil product for all
income customers so as everyone can easily purchase. This product price will very reasonable or
cheap so as everyone can buy it.
D Marketing Mix for new product of LO'real
The marketing mix refers to the set of actions and criteria by which organisation can able
to promote its brand and product and services in the market. This marketing mix assist in
distributing the right product, at the right time and at the right place. With assistance of this
method, company can easily launch and distribute its product and services in the market and gain
customer attraction (Jaramillo and Spector, 2015). This marketing mix major includes four
elements that is product, price, place, promotion. In the recent time, marketing mix has been
increased and it included three another element that is process, people and physical evidence.
Following are systematic marketing mix of the LO' real new Organic hair oil product- Product- This element refers to the items which actually being sold in the market.
LO'real deals with various product of cosmetics and beauty care like hair colour, skin
care, make up, perfume, hair care etc. But the new product which will ready to launch in
the UK market that is Organic hair oil (Dhar and Varshney, 2011). This Organic hair oil
product have attractive and new features which distinguish it from its competitors. This
Organic hair oil have contained a unique combination of the three-traditional oil like
almond, coconut and olive. The main feature of this new hair care product is that it will
provide shine, softness and thickness to customers hair.
 Price- Price is another major important element in the marketing mix which defines the
value of the product and services. While company sets the prices of product and services
then it affected by the cost of production, segment targeted, ability of market, demand
and supply etc (Homburg, Jozić and Kuehnl, 2015). LO'real will use the market
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penetration strategy under which it will sale its new Organic hair oil in the very low
prices to all customers.
 Place- Place refers to the point at which product and services is ready to sale. It
effectively focuses on activities that supports to distribute the product and services.
LO'real Organic hair oil product will sale by both online and offline method (Cochoy,
2014). This oil will available on all LO'real physical stores and other cosmetic shops. In
addition to this, new Organic hair oil will available on the company website as it has
own website on the internet from where customer can order for the product. Promotion- This is another major element in the marketing mix by which company can
promote and advertise its product and services in the market. LO'real will use online and
offline promotional method for advertise its new Organic hair oil product. In the online
method, it will use social media channels like Facebook, Instagram, twitter etc and direct
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Illustration 1: Marketing Mix
Source: Dhar and Varshney, 2011

mail (De Mooij 2013). On the other hand, in the offline promotion, it will use newspaper,
magazines, radio, television etc. Physical evidence-This is another major element of marketing mix. LO'real have various
stores in the commercial areas of cities so as every customer can easily arrive there and
purchase the product and services. Its physical stores designed in attractive look along
with company logo through which customer can easily attract (Chen and et.al., 2015). Process- LO'real used effective customer relationship management system under which it
deals with customer directly. It has its own website on the internet by which it gathers
customer review and feedback about the product and services resolve their complaints
about the services (Barrett and Weinstein, 2015). Thus, it can be said that for the new hair
care oil product, company will continue their excellent process for customers.
 People- People is another major important element of marketing mix which defines that
how company treats with people who engage with organisation. LO'real have very high
skilled and talented employees who gives their best contribution to attain the
predetermined objective of the firm (Bahadir, Bharadwaj and Srivastava, 2015).
However, they are quite dissatisfied with company because cited venture does not fulfil
their financial requirement properly. Furthermore, there is not any kind of monetary and
non-monetary rewards for people that is why they are quite demotivate and dissatisfy
with company. On the other hand, customer is fully satisfied with company because in
order to deliver the right product, at the right time and right place company used effective
and modern customer relationship management system.
CONCLUSION
From this report, it has been concluded that LO’real will launch the new Organic hair oil
product for the lower, middle and higher income group customers because this product will
available in the very cheap and reasonable price which every income group customer can easily
able to purchase. With help of segmentation, targeting and positioning, cited venture can able to
get success and growth in the market. In addition to this marketing mix assist in distributing the
right product, at the right time and at the right place.
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REFERENCES
Books and journals
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