Evaluating Advertising's Impact on L'Oreal Cosmetics Buying

This report investigates the impact of traditional and social media advertising on the cosmetic buying behavior of women in London, using L'Oreal as a case study. The study explores the influence of advertising on consumer behavior, examining factors that affect purchasing decisions within the cosmetic sector. The report includes an introduction outlining the research background, objectives, and questions, followed by a literature review covering advertising, consumer behavior, and the cosmetic industry. The research methodology details the research design, data collection methods, and analysis plan. Findings and discussion analyze both primary and secondary data, testing hypotheses and interpreting the results. The conclusion summarizes the key findings and provides recommendations for L'Oreal to improve its advertising strategies and positively influence consumer buying behavior. The report includes a questionnaire in the appendix.

To evaluate the impact of traditional and social media advertising on
women's cosmetics buying behaviour in London. A case study on
L'Oreal.

TABLE OF CONTENTS
Chapter 1: Introduction..............................................................................................................................1
1.1 Background of the study.............................................................................................................1
1.2 Research background..................................................................................................................1
1.3 Organisation background............................................................................................................2
1.4 Rational for the chosen topic......................................................................................................2
1.5 Purpose for undertaking the research.........................................................................................3
1.6 Statement of the problem............................................................................................................3
1.7 Research Aim and Objectives.....................................................................................................3
1.8 Research questions......................................................................................................................4
1.9 Hypothesis..................................................................................................................................4
1.10 Significance of the study..........................................................................................................4
1.11 Structure of the Dissertation.....................................................................................................5
Chapter 2: Literature Review.....................................................................................................................7
2.1 Introduction................................................................................................................................7
2.2 Advertising..................................................................................................................................7
2.3 Traditional Advertising...............................................................................................................8
2.4 Social Media Advertising.........................................................................................................10
2.5 Consumer Behaviour................................................................................................................12
2.6 Consumer Buying Behaviour...................................................................................................12
2.7 Factors Influence Women Buying Behaviour...........................................................................13
2.8 Factors Influence Consumer Buying Behaviour in Cosmetic Sector.......................................14
2.9 Advertising Influencing Consumer Buying Behaviour............................................................15
2.10 Advertising Influencing Consumer Buying Behaviour in Cosmetic Sector...........................16
2.11 Conceptual Framework...........................................................................................................17
Chapter 3: Research Methodology...........................................................................................................19
3.1 Introduction..............................................................................................................................19
3.2 Research philosophy.................................................................................................................19
3.3 Research Design.......................................................................................................................20
3.4 Research Approaches................................................................................................................20
3.5 Research Methods.....................................................................................................................20
3.6 Research Strategy.....................................................................................................................21
3.7 Data Collection Methods..........................................................................................................21
3.8 Sampling (Sample Size)...........................................................................................................22
3.9 Data Analysis Plan....................................................................................................................22
3.10 Rationale of the question set...................................................................................................23
3.11 Ethical issues...........................................................................................................................23
3.12 Reliability and Validity...........................................................................................................24
3.13 Research limitations................................................................................................................24
Chapter 4: Findings and Discussion.........................................................................................................25
4.1 Introduction..............................................................................................................................25
4.2 Findings....................................................................................................................................25
4.3 Discuss the findings..................................................................................................................32
4.4 Interpretation.............................................................................................................................33
4.5 Test hypothesis..........................................................................................................................35
4.6 Analysis of Secondary data.......................................................................................................37
4.7 Comparing primary and secondary findings.............................................................................38

Chapter 5: Conclusion and Recommendations........................................................................................40
5.1 Conclusion................................................................................................................................40
5.2 Recommendations.....................................................................................................................41
References................................................................................................................................................42
Appendix..................................................................................................................................................46
1) Questionnaire..............................................................................................................................46

CHAPTER 1: INTRODUCTION
1.1 Background of the study
Women are considered as the great influencers when it comes to the buying decisions of the
family. However, women are most powerful consumer in the world especially in terms of cosmetics
(Barnes and et. al, 2004). In the present study, researcher focuses on evaluating the impact of traditional
and social media advertising make on women in their buying behaviour of cosmetics. In general,
advertising is a trending concept of marketing that aims at influencing the buying behaviour of
customers (Brown, 2013). Whereas consumer behaviour is the process or activity through the help of
which people select, purchase, evaluate and consume products and services to satisfy their needs and
wants.
Looking at the present competitiveness in cosmetic industry, companies operating in it are
making valiant efforts to influence women by the means of involving different transnational and
modern promotional tools and techniques (Romaniuk and Wight, 2014). Social media in this context is
considered as the most appropriate and suitable platform for the companies to invest in as it helps them
in targeting large number of audience as well as present their respective set of cosmetics products and
services in attractive and smart manner to influence consumer (Women) (Clarke, 2001). Foremost
objective of this study revolves around the fact of evaluating the influence that use of social media
marketing on buying behaviour of women regarding cosmetics products.
1.2 Research background
There are several authors that had made research on the related subject of the selected topic
which gives the appropriate base for investigator to understand the impact or influence or relationship
on/of traditional or social media advertising and buying behaviour of consumers. In the study of Kim,
J. A. and Ko, E., 2012, it is has been identified that, use of social media marketing is helping the course
cosmetics and luxury products selling companies in increasing the value of equity (Kim and Ko, 2012).
While on the other hand, through the study conducted by Chao, A. and Schor, B. J., 1998, it has been
evaluated that income and occupational status are positively associated with the propensity to engage in
status purchasing. Along with this, article assist in investigating the brand buying patterns among
different cosmetics products of women (Chao and Schor, 1998). Similar to this, research of Barnes, R.
B. and et.al, 2015, assist in evaluating potential useful insights on selected topic that includes
willingness among women consumers to accept standardised cosmetics brand names. Along with this,
they identified that traditional advertising such as television and magazines are highly influential media
channels for the influencing the buying behaviour of women in cosmetics products and services
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(Barnes and et. al, 2004).
1.3 Organisation background
The L'Oreal Group is a French cosmetics and beauty company that offers wide range of
products and services to different parts of the world. Company is headquartered in Clichy, Hauts-de-
Seine. L'Oreal in personal care industry is considered as the largest or biggest cosmetics company.
Looking at the field of cosmetics, L'Oreal deals in consists of hair colour, skin care, sun protection,
make up, perfumes. Apart from these, management of the company is also active in dermatology,
toxicology, tissue engineering, and biopharmaceutical research fields and is the top nanotechnology
patent-holder in the United States (L'Oreal Paris, 2015). In terms of trading, L'Oreal is a component of
the Euro Stoxx 50 stock market index and traded as Euronext: OR. Founder Mr. Eugene Schueller
founded the company in 1909, 106 year ago. In context to the social marketing strategy of the
company, it has as staff of 400 people who constantly post content on Facebook every day as per the
guidelines of Marc Menesguen, the chief marketing officer. The main purpose of L'Oreal existence is to
provide the best quality products to the consumer. Along with this, to be friendly and helpful towards
customer and staff members and treat everyone equal. However, these are corporate objectives for
which L'Oreal offers wide range of products and services for both gender and enhance the natural
beauty of the people (L'Oreal Strategy, 2014).
1.4 Rational for the chosen topic
In the current investigation researcher concentrates on evaluating impact of traditional and
social advertising on buying behaviour of women customers in cosmetic industry. However, there are
several companies operating in UK that offers wide range of quality of cosmetic products and services
(Barnes and et. al, 2004). All the companies making valiant efforts in influencing the women to buy
their respective products by using various marketing and promotional tools. On the other hand, people
around the globe are constantly getting connected to various social networking sites to get updated and
trending about the changing world (O’Guinn and et.al, 2014). Therefore, rationale behind selecting this
topic is that it will assist researcher in enhancing his/her as well as readers understanding regarding the
use of traditional and social media advertising by popular enterprises in cosmetic sector (Romaniuk and
Wight, 2014). Along with this, online shopping has become the trend of era. Thus, social media
advertising can have major influence on the buying behaviour of women regarding cosmetic items.
Facebook, Twitter, YouTube, Instgram etc. are the major social networking site where companies like
to promote products and services to influence large number of audience. Furthermore, there are several
companies like DIOR, Lancome etc. making the use of traditional as well as social media to influence
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number of women around the globe (Romaniuk and Wight, 2014). Thus, this is major reason behind
conducting current study as it will help in evaluating and analysing the impact of traditional and social
media advertising methods undertaken by L'Oreal are influencing the women to buy its respective
range of quality products and services.
1.5 Purpose for undertaking the research
There are several purposes on conducting this research, which can be bifurcated into three
different segments such as: from the researcher's point of view, context of future research and in regard
to L'Oreal future recommendations. The main purpose of researcher in conducting this study is to
enhance knowledge and skills regarding various aspects like impact of traditional and social media
advertising on buying behaviour of women. In terms of future research on related topic, this study will
act as a platform or base for the researchers and help them in carrying out their respective study
appropriately. Lastly, the main purpose for L'Oreal as through the means of this study, researcher can
provide suitable and reliable future recommendations to the firm which can help top level management
in enhancing business strategies and performance.
1.6 Statement of the problem
Looking at the present topic, statement of problem is to identify whether L'Oreal's traditional
and social media advertising influencing the buying behaviour of women in purchasing cosmetic
products. Thus, researcher focuses on evaluating and analysing various factors that are responsible for
influencing the buying behaviour of women while purchasing cosmetic items. Information for the same
will be gathered through the means of primary and secondary methods so that both practical and
theoretical base can be made and accordingly feasible and reliable conclusion can be made for the
future recommendations (O’Guinn and et.al, 2014).
1.7 Research Aim and Objectives
Aim:
The main purpose of conducting current research is to evaluate the impact of L'Oreal traditional
and social media advertising on women's cosmetics buying behaviour in London.
Objectives:
In order to achieve the above defined aim it is essential for researcher to design certain set of
objectives that can help in achieving the overall purpose and carry out research in suitable and reliable
manner. Following are the objectives of current investigation:
 To examine the role of traditional or social media advertising on consumer buying behaviour.
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 To evaluate the significance of social media advertising in influencing consumer in personal
care industry.
 To assess the impact of traditional or social media advertising on consumer buying behaviour in
cosmetic sector.
 To recommend strategies and tactics for L'Oreal to positively influence the consumer buying
behaviour through Traditional and social media advertising.
1.8 Research questions
In this section of research, investigator determine several questions on the bases of objectives
which act as the base or platform for carrying out entire course of study on selected topic in smart and
reliable manner. Following are the research questions for current study:
 What are the roles of traditional or social media advertising on consumer buying behaviour?
 Identify significance of social media advertising in influencing consumer in personal care
industry?
 Determine various impact of traditional or social media advertising on consumer buying
behaviour in cosmetic sector?
 In what ways can L'Oreal can improve its marketing and advertising methods for positively
influencing buying behaviour?
1.9 Hypothesis
Ha0 = There no major influence of Traditional advertising on women buying behaviour of cosmetic
products.
Ha1 = There is major influence of Traditional advertising on women buying behaviour of cosmetic
products.
Hb0 = There no major influence of Social media advertising on women buying behaviour of cosmetic
products.
Hb1 = There is major influence of Social media advertising on women buying behaviour of cosmetic
products.
The above defined is the hypothesis based on the selected topic and it will be analysed through
the means of Chi Square Test. For the purpose of this quantitative analysis method will be used and it
will be proved for generating reliable and suitable findings for the whole study.
1.10 Significance of the study
Looking at the nature of present study it possesses great significance for different purposes.
However, in case of researcher as an individual, this study is important because it helps him/her in
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enhancing knowledge regarding different aspects such as consumer buying behaviour in cosmetic
industry, use of traditional and social media marketing by the companies operating in personal care
industry (Barnes and et. al, 2004). Along with this, important in terms of skills as use of quantitative
and qualitative tools for carrying out the analysis of data will help in improving the overall skills and
abilities.
Considering the case of L'Oreal, present study have importance because through the means of
survey methodology company can identify and evaluate the thoughts and views of women customers
regarding strategies used in marketing and promoting products are feasible in terms of influencing or
not (Romaniuk and Wight, 2014). Along with this, by the means of recommendations provided by
researcher on the basis of entire course of study can help in enhancing the strategies and tactics so that
company can positively influence the women buying behaviour for cosmetic products.
1.11 Structure of the Dissertation
While carrying out a dissertation it is the duty of investigator to follow appropriate structure or
procedure so that effective results and findings can be generated. Following is the structure of present
dissertation: Chapter1 Introduction: In this section researcher aims at influencing the concentration of reader
by briefly describing different essential sections and methods of the study. However,
background, rationale and significance of the study is presented in the context of selected topic
(Hervé and Mullet, 2009). Thereafter, reliable aim and objectives are defined and accordingly
questions are framed for carrying out whole study. Chapter2 Literature Review: This is considered as the most significant aspect of the study
because it helps researcher in developing suitable theoretical base for conducting the entire
source of study. However, literature reviews consist of thoughts and views of different authors
and scholars so that topic can be elaborated from different dimensions. Chapter3 Research Methodology: The main aim behind conducting this chapter is to identify
and evaluate various tools and techniques to carry out entire course of study in the best possible
manner. There are several crucial elements that methodology of a research consists such as:
research design, philosophy, approach, sampling, strategies, data collection, data analysis,
ethical consideration and limitations (Lin and Lo, 2015). Chapter4 Data Analysis and Findings: In this, researcher analyse the collected data and
accordingly frame suitable conclusion and recommendations. In the present study, both
qualitative and quantitative approach will be used to analyse the data (FLORET, 2008).
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 Chapter5 Conclusion and Recommendations: It is the final section of the dissertation which
consists of conclusion on the basis of entire course of study (Romaniuk and Wight, 2014).
However, on the basis of loopholes and issues researcher provides suitable recommendations
for the future contingency.
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CHAPTER 2: LITERATURE REVIEW
2.1 Introduction
It is one of the important sections in the study as it helps researcher in developing suitable and
appropriate theoretical base for carrying out entire course of study. Literature review consists of wide
range of information of different aspects through secondary sources (O’Guinn and et.al, 2014).
However, researcher in the parts focuses on indulging and highlighting researches of different authors
and scholars on the related topic. Looking at the nature of present study, literature review section will
play crucial role as it will assist in evaluating and analysing the impact of traditional or social media
advertising on women buying behaviour in cosmetic sector (Jaakkola, 2007). At present, personal care
industry is highly competitive that enforces companies to undertake different tools and techniques to
promote the products and services as well as influence customers especially Women, as they are the
potential customer for target (Romaniuk and Wight, 2014). Furthermore, researcher in this part will
discuss traditional and social media advertising and its impact on the buying behaviour of women in
UK. Along with this, factors that are constantly influencing the buying behaviour consumers in
cosmetic sector. Lastly, through the help of conceptual framework researcher justifies the information
gathered through secondary sources are suitable for achieving the overall aim of the study. However,
these aspects of the research will be critically analysed on the basis of view points and perceptions of
different authors and scholars. It creates suitable platform for the investigator to develop theoretical
base and achieve the defined research questions. Hence, literature review chapter is considered as one
of the most essential aspect of the study and researcher has to pay great attention to it while carrying it
out (Kim and Ko, 2012).
2.2 Advertising
According to the study of Wood (2005), advertising can be defined as the form of marketing
communication which is highly used to promote or sell the products and services in the corporate world
(Wood, 2005). Further, author defined that advertisements are the paid messages by the marketers
intend to inform or influence people whom they target. Similar to this researcher evaluated from the
article of Boykin (2014), advertising is a method or modern tool to create awareness about the products
and services that company offers to its target market. Nowadays, advertising irrespective to the industry
is determined as the integral part of the strategic decisions that manager has to perform in suitable and
reliable manner for generating desired results and outcomes (Boykin, 2014). Through the means of
article made by Rae (2015), researcher identified that, the advertising campaigns in cosmetic industry
are usually aimed at women wishing to improve their appearance, commonly to bring grace in their
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physical appearance and mainly reduce the signs of ageing (Rae, 2015). Apart from all, Lee (2015)
defines the importance of advertising and states that, is assists in creating a suitable platform for the
companies to inform their target audience about the products and services available in the market and
illustrate them their usefulness (Lee, 2015). Similar to this Stacy (2010) defines that, advertising is
important from three different dimensions: for customers, for seller and companies and for the society
(Stacy, 2010).
Furthermore, in the book “Can't Buy My Love” written by Kilbourne (2012), analyses that
nearly a century of advertising and argues that, as the rate at which expenditure of companies on
advertising is increasing, at the same rate women's cosmetic purchasing also increases. However,
according to her, it because women feel lot of pressure in order to meet an idealized beauty standards
and the advertisements offers women the opportunity to live up to the standard which is highly
effective in influencing women the most potential customer to buy wide range of products and services
(Kilbourne, 2012).
2.3 Traditional Advertising
O’Guinn and et. Al, (2014), defines traditional advertising as the mass media delivers
commercial messages to mass audiences (O’Guinn and et.al, 2014). In this mass media refers to paid
media. There are several methods that are being considered as the significant elements of traditional
advertising which can be understood through the help of study conducted by Boykin (2014), television,
radio, outdoor billboards and print media etc. are some methods that used to advertise in traditional
methods (Boykin, 2014). Despite of changing trends and corporate environment, traditional
advertisements are feasible and suitable in context to attract and influence people. There are large
enterprise operating in different sectors stills undertakes elements of traditional advertising in
marketing and promoting their products and services or to spread information regarding available
brands in the market. Furthermore, author states that when network television dominated the media and
limited advertising vehicles were available for the marketers to use, traditional advertising focuses on
building suitable and strong brand awareness within the market in order to create the brand name
(Lavinsky, 2013). Branding during traditional advertising helps companies to develop emotional bond
with consumers by showing the significances of products and services in attractive and creative manner
so that target audience are influenced to buy the products.
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(Source: Advertising system data Model, 2013)
Janoschka (2004), there are several advantages of different elements of traditional advertising
which marketer has to understand and accordingly develop strategies to generate desired results and
outcomes. In case of newspaper, there is always something for everyone, thus, using this means can
help companies to reach target audience in effective manner by placing section specific ads (Janoschka,
2004). In addition to it Barker and Angelopulo (2005), defines that, magazines assist in providing
creative potential as ads are more often conceptual and less about the price which gives appropriate
space for the company to outline the characteristics and traits of the offered products and services
(Barker and Angelopulo, 2005).
Contradicting to this Lavinsky (2013) states that, people are ignoring the traditional methods
and choosing to get their news and updates through online. By the means of this, several smaller
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Illustration 1: Traditional Advertising Model