L'Oreal Brand Extension and Marketing Principles

This presentation discusses L'Oreal's brand extension strategy, focusing on the Tauber and Ansoff models. It also explores the marketing principles that contribute to L'Oreal's growth and success. Additionally, it covers the key competitors and market trends affecting the company.

MG 412 Principles of Marketing

INTRODUCTION
 Principles of marketing is the approach which involved various kind of activity that
helps to transfer the goods and services to the end consumers.
 Besides, that principles of marketing promotes the product, price, place that helps
to improve the company overall performance.
 Presentation will be covering the important expects of marketing and how they
promote Brand and helps to gain the interest of target customers.

Background on the Chosen Brand
L'Oreal is the high leading cosmetic brand in across the world were they target women
who fond of beauty products and use in daily life. The focuses of L'Oreal towards the
fulfilment of target audience needs and wants.
Kapferer's Brand Identity Prism
Brand identity prism model helps to determine the new brand strategies and built up the
strong image in front of the customers. Brand identity model includes some following
points.
Physique : Physique of the brand shows its unique identity through which they attract
the customer attention such as L'Oreal.
Personality : Personality represents the brand level and how they interact with outside
the world. Such as L'Oreal has presenting its appearance through its high quality
beauty products, through brand ambassador who well attract the target buyers.

To be Continued
 Culture : culture define brand values and beliefs such as L'Oreal believes that in
integrity, respect, courage and transparency to employees.
 Relationship: Relationship define the bond between company and its stakeholders.
L'Oreal made a strong bond by offering the faithful beauty products with no
complains.
 Reflection: the stereotype user of the brand. A brand is likely to have several
buyer persona but L'Oreal has gone with their target market.
 Self Image: Company should try to build image as per their customer wants.
L'Oreal always meet the needs of its buyers and try to make them happy with
nourishing product or services.

Coverage of market trends including Key
PESTLE issues
 Political : Political factors affect companies through often changes in code of
conduct. Manufacturing companies got highly affected by the political factor.
Several policies and procedures affect the growth of L'Oreal.
 Economical : Economic factors affect L'Oreal due to changing in exchange rate of
the state in which company working. GDP is the main factor that contribute the
business of the luxury products like L'Oreal.
 Social : Social factors highly influenced cosmetic companies as per the trend and
demand of the customers. L'Oreal adopting high range of advanced technologies in
order to meet out the society needs.
 Technological : Technological factor has been given high impact on the company
performance. L'Oreal is very much prone to acquire new technologies to satisfy
their clients.

Explanation of the new product, proposed
target market and key competition
New Product
 L'Oreal will plan to launch the new organic beauty brand into the French
supermarket. Organic beauty products are made up from natural ingredients with
fewer chemicals and artificial things (L'Oreal unveils new organic beauty brand, La
Provencale Bio, 2018).
Proposed Target
 For organic products customers are highly interested to buy. Target customers for
the new organic products are women.
Key Competitors
 Major key competitors of L'Oreal are Mac Cosmetic products, Maybelline, Chanel;,
Urban Decay, Clinique. All these are the highly competitive as L'Oreal. For that,
L'Oreal should have required to adopt the new product strategy to sustained the
brand image.

Visual image of the brand extension
Ansoff's Grid Model
Market Penetration : Market penetration is the strategy that can help L'Oreal to a
growth strategy where the business focuses on selling existing products into existing
markets. This can help to gain company market share, secure dominance growth of
L'Oreal and helps in restructuring the market by driving out the key competitors.
Market Development
This strategy can help companies to rebuilt the image of existing products into the new
markets by launching the goods in different geographical market with new
packaging.
Product Development
This is the another strategy that could adopt by L'Oreal to launch the new product into
the market where they launch new product extension for the buyers. This is the most
competitive strategy that helps company to remove the key competitors.

Visual Image

Tauber's Brand Extension
 The focus or aim of the Tauber model is to leverage the brand name and recognition
in different category.
 In order to launch the new product or services company should be acquired different
stages and steps of Tauber such as given below: there are two types of brand
extension first extension into related categories and second is Extension into
Unrelated categories.
 Same products new form is the strategy to leverage the brand image in the market.
 Products with same texture, ingredients or components is the another way to
explore the new advantage growth and long lasting range of product or services.
 Companion products

Types of Brand Extension

Conclusion
 As per the above presentation, it has been concluded about the L'Oreal brand value
and extension in order to develop the growth opportunity by the help of marketing
principles.
 Study described several models and marketing models to analyse the
environmental analysis and competitive analysis.

REFERENCES
Books & Journals
Ahmed, J. U., Sultana, H. and Ahmed, A., 2018. Patanjali ayurved invades India. Decision. 45(1). pp.75-
91.
Lilien, G. L., Rangaswamy, A. and De Bruyn, A., 2017. Principles of Marketing Engineering and
Analytics. DecisionPro.
Pinheiro, M., 2017. How can L´ Oréal relaunch Fructis as a disruptive brand for Millennials in Portugal
(Doctoral dissertation).
Rincon, M., Rosengarten, K. K. and Ziegler, J., 2016. Bridging gaps: Professional positioning in mass
retail and the effects on a brand’s perceived quality–The Syoss case. LBMG Strategic Brand
Management-Masters Paper Series.
Šírová, V., 2015. Managing Marketing Report On L’oréal Group. CRIS-Bulletin of the Centre for
Research and Interdisciplinary Study. 2015(1). pp.31-46.

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