Brand Management Report: L'Oreal Group, Brand Strategy and Equity

This report delves into the realm of brand management, using L'Oreal as a case study. It begins with an introduction to brand management and its importance, followed by an analysis of L'Oreal's brand equity, marketing strategies, and brand building processes. The report examines the stages of building a successful brand, including authenticity, target audience identification, mission statements, and value determination. It highlights the role of the marketing department in creating brand equity and discusses successful strategies for strengthening a brand, such as competitive analysis and maintaining a consistent brand image. The report also applies Keller's consumer-based brand equity model to L'Oreal, examining brand identity, meaning, response, and resonance. Overall, the report provides insights into how L'Oreal manages its brand, builds brand equity, and engages with consumers.

Brand Management

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Introduction............................................................................................................................3
Main body...............................................................................................................................5
Conclusion..............................................................................................................................9
TASK 2............................................................................................................................................9
1. Brand portfolio strategy:.....................................................................................................9
2. Hierarchy management of brands within organisations portfolio......................................9
3. Analysis of strategies used for managing equity of brands..............................................12
TASK 3..........................................................................................................................................13
1. Strength of a brand that can be leveraged .......................................................................13
Difference between brand extension and line extension......................................................13
2. Weaknesses that need attention and providing some possible suggestions.....................14
3. Collaborative and partnership agreements.......................................................................15
TASK 4 .........................................................................................................................................16
1. Brand Value......................................................................................................................16
2. Brand Awareness:.............................................................................................................17
3. Market Share....................................................................................................................18
4. Consumer Attitudes..........................................................................................................18
5. Purchasing Intent..............................................................................................................18
CONCLUSION..............................................................................................................................19
REFERENCES..............................................................................................................................20

INTRODUCTION
Brand management is the tool and technique that helps in analyse and plan that make
perception about the product and services in market. Develop and maintain a strong relationship
with target market is very important tool in brand management. In tangible elements of brand
management consist of product and services and their important features such as look, price and
packaging of product and services. It is about deep knowledge of the term ''Brand'' in which
includes develop the promise, make it and maintain for the customers to meet their perception .
Brand management is the art of creating and maintaining it for long period of time and managing
tangible and intangible characteristics of brand.
This report is based on L'oreal Group which is a French personal care company, its
headquarter is in Clinchy and registered in London. It is one of the world's largest cosmetic
company and provides products such as hair colour, skin care, sun protection, make-up and
perfumes. This report is based on Brand and its equity and how to make an successful brand with
role of marketing in building brand. Further it elaborates brand portfolio strategy and hierarchy
management in organisation with strategies to maintain brand equity in the market. In addition to
it focus on brand leveraging, its strength and weaknesses with help of collaborative and
partnership agreements. It also explains Value, awareness, share and customer attitudes of brand
which are important attributes in organisation stability.
TASK 1
Article 'Brand is Power'
To: Board of Directors of ' Optimum Impression Ltd '
From: Marketing Manager
Date: Feburay 6th , 2019
Introduction
Optimum Impression Ltd. is an advertising organisation of UK, that offers a wide range of
services. This company always aims to deliver high quality of services to its consumers as per
their requirement. In this regard, its marketing manager has prepared an article on L'oreal Group
for developing new marketing Brochure, named by 'Brand is Power'.
Brand is an unique design, sign, symbol and words or combination of all these, it helps in

creating an image to identify an product and services and helps in differentiate from competitors
(Anselmsson, Vestman Bondesson and Johansson, 2014). With the passage of time its image
associated with the credibility, quality and perception with satisfaction of consumers mind.
With 18 international brands like Garnier, Lancome, Ralph Lauren and more, L'oreal is
considered as one the leading brand in cosmetics, skin care and luxury production.
Brand equity refers to the value and enhancement that is generated by the organisation in their
product and services and create an valuable or recognizable name in comparison to their
competitors. An product can be become valuable assets by providing memories, easy
recognition and superior in quality and reliability (Dunes and Pras, 2013). Brand equity has
three important components in which includes perception of the consumer, positive and
negative effects and their resulting value. In case of optimum impression Ltd. it creates its brand
equity by giving best quality to their consumers. Brand equity is very important when an
organisation plan to expand its market share.
Stages of Building a successful brand Brand building is a linear process in which main and
important components that helps in building a strong foundation of brand (Eggers and et. al.,
2013). That in some time become mature and nurture, this process have essential stages that
help in creating brand value for the product and services in case of optimum impression Ltd.
There are some specific steps in building a strong brand that are as follows:
Consider brand authenticity Achieving the authenticity is the big deal and it is old saying that
actions speak louder than the words. In case of building brand authenticity organisation have to
give their product description in true manner. Every organisation in today's scenario are
available on the websites, social media and proclaim their mission and objectives if they are not
true in their words then it creates risk factor and damage the brand value. Authenticity is
important factor in brand identity by that people interact with their customers and community as
a whole. So building the brand there is need to create authenticity in product and services. In
scenario of optimum impression Ltd. It works on authenticity in their product and services to
fully satisfy their customer base.
Identify the target audience Identify the target audience is one of the most important aspect in
building brand, to build brand there is need to identify the target audience. In case of Optimum
impression limited their consumer base is corporates because it deals in professional joinery and
carpentry related services so while expand their market share there is need to evaluate consumer

base. So that according to that products should be frame.
Develop a mission statement to develop a strong brand there is need to evaluate purpose and
mission of the organisation so that employees can give their best in organisational goals and
objectives while expand market share in Optimum impression limited. Mission statement
should be actionable form so that necessary steps should be taken to accomplish goals (Esch
and et. al., 2014).To develop an brand name there is need to frame mission statement that give
direction and give purpose also. In that current and potential future consumer should be
evaluated in better manner in optimum impression Ltd.
Determine the value To build a strong brand name there is need to evaluate organisation key
values or strong points and after that find out in which area they can expand their market share
in case of optimum impression limited their value is openness and their product quality so by it
they create brand name while expand its market share.
Establish voice and personality of organisation To build strong brand identity there is need
to make product their voice by provide suitable content and available on all channels
(Fetscherin and et. al., 2014). It is depend on type of product if product is professional then the
method of communication is different from Bash products. In case of optimum professional
limited they provide carpentry products to corporates so their communication channel and
method is different from other field and that communication gradually their voice.
Role of marketing department in creating brand equity Marketing play a very important
role in creating brand equity to give differentiated products, marketing majorly work to promote
products by show unique features. Product should be brand name when it is accessible to
everyone and it is work of marketing to give accessibility of product to customers. The global
cosmetic market is valued to reach an estimate of USD 80bn in 2026 by giving opportunities in
future. It has get specialised information by sites in which Quancast and Market samurai are
reliable source from which organisation collect data and information. Hence marketing work as
a tool to collect important data and information. They find out solution of consumers problem
by read their feedbacks and give relevant information to other departments.
Main body
Successful strategy for strengthen:
Brand equity- Quality products and services is the backbone of brand strategy that is related to
deliver quality products to the consumers (Franzak, Makarem and Jae, 2014). In that strategy

deliver products that satisfy not only current needs of consumers but also their future needs so
that they can get delighted experiences from products and services from optimum impression
limited.
Competitive analysis To build an strong brand there is need to evaluate competitors strategy,
recent trends and activities that prevail into the market so that according to consumer demand
they can reform in their products and services by optimum impression limited.
Consistent brand image The most convenient and usable strategy to make an strong brand
name there is need to find the place in which organisation presently exist and to remain always
faviorate of the consumers methods of communication in consistent and engaged way. To
maintain consistent brand image there is need to evaluate prices and quality of the products with
promotion strategy also. In case of optimum impression limited to build consistent brand image
there is need to give always provide products that satisfy consumer needs and wants.
Keller's consumer brand equity Keller brand equity model helps in strengthen the brand
equity that are as follows:
Brand identity ( who are You) That point states about what kind of brand it is and how it is
differ from competitors. That step enables to create Brand salience or awareness in products
(Griffiths and McLean, 2015). This helps in create goals and objectives to bring brand
awareness by evaluating that brand perception is correct at every stage of buying process of
product and services. In that marketers find out the choices between brand of competitors and
their own. For example: To specify brand, L'oreal use the tag line in its product 'Because I'm
Worth it'.
Brand Meaning ( what are you) ? In that identify and communicate what brand stands for and
it also helps in performance and imagery in which product is able to satisfy consumer needs and
wants. In performance defines in which manner wants of consumers meet properly and in
performance consist of five factors in which primary characteristic and their features, product
reliability, serviceability, effectiveness of services and efficiency and style with design. In
imagery in which manner customer's needs and wants satisfy needs in social and psychological
manner. In case of L'oreal, for this company it defines brand as one of the luxurious image in
cosmetic and skin care products.
Brand Response(What do I think or feel, about you) In response consist of feedback related
to products and services with judgements and feeling regarding products. For this process,

L'oreal takes appropriate decisions to meet demand of customers in desired manner. It always
give preference to customer's demand and what they actually want from its products.
Brand Resonance (How much of a connection would I like to have with you) ? That is stage
in which consumer reach at top and feel deep connection and psychological bond with them. In
resonance includes loyalty of the behaviour of consumers in which regular and repeat purchase
of consumers. Attitudinal attachment in which how much love an consumer show for products
of loreal with sense of community and active engagement in which active engagement with
products and services (Heding, Knudtzen and Bjerre, 2015). for example in case of loreal it
gives advertisements that emotionally connect consumers by their products that helps in create
their brand loyalty.
Hence all these steps helps to optimum impression limited to build strong brand equity
before their customers by evaluating each and every aspect that discussed above to get effective
results.
Brand extension/Stretching is a strategy of marketing in which firm with a developed image
avail their own brand name in different categories. Organisation expand its market share with
strong brand name that is exist already. That existing brand name helps to organisation to
launch a new product in new products and services very easily. In case of L'oreal, it uses its
established brand name in their new product and services that already recognize and admirable
by their existing customer and their new customers. Existing brand that helps in brand extension
is refers to as parent brand. Brand extension helps in increase brand image easily and risk factor
easily reduces in perspective of consumers because existing brands have great goodwill that
passes to another products easily. For example in 1998, when L'oreal decide to launch a new
product after thorough research, it debated a lot before launch a new brand or for an extension
because it is totally a new product that basically centralise for women's need. So to increase
brand extension competitors analysis is very necessary.
Reinforcing and revitalising of brand Brand majorly focus on retain brand equity to keep
alive in existing and new consumer base by updating products and services that strategy follow
by optimum impression limited to keep align. According to Keller Brand reinforcement
involves following aspects that are as follows:
Maintaining brand consistency that helps in create positive reputation with customer, it enables
to customer's familiar with brand and enhance their thought process and perception also

(Högström, Gustafsson and Tronvoll, 2015). For example: In case of L'oreal for Revitalization
of products, management need to focus on developing innovation. For this process, it needs to
launch organic or herbal beauty products in developing countries, where people demand more
about such cosmetics.
Brand revitalisation is adopted when product reaches at maturity stage in PLC and their profit
fallen drastically. These strategy use by organisation to back to in profitable stage for that
optimum impression use different types of research. Brand revitalisation should be adopted to
increase competition, capture different market share, to globalize in different market scape and
for mergers and acquisition and to adopt new technology and reduce legal issues that face by
organisation (Kapferer, 2012). For example: L'oreal Paris product is at maturity stage so to
revitalisation of that product they add some features so that consumer can attract towards it
again.
Overcoming from brand crisis To overcome from brand crisis Loreal use variety of strategies
in which proper planning, acknowledgement and informing with monitoring and extension,
reinforcement are important factors that help during the crisis. For this process, to overcome
from brand crises, L'Oreal is going to penetrate the herbal and Ayurvedic industry in Asian
marketplace.
Monitor 24/7 To overcome from the brand crisis there is need to not only evaluate consumers
response during the week and working hours instead of that they have to evaluate on 24/7
means on regular basis. By evaluation of consumer response it proves very beneficial for them
to deal in effective manner and understand needs and wants of consumer and reforms that needs
in future to satisfy consumer expectations (Bruhn, Schoenmueller and Schäfer, 2012). L’Oréal
on constant basis evaluate consumer's changing needs and wants then major reforms should be
adopted so that effective results should be accomplish.
Respond quickly and ethically To control the brand crisis there is need to respond quickly to
keep the situation not away from control otherwise it is very difficult to commencing ethically
without finding out problem in full manner. To find out loop falls and unfair practices that
happen during the launch of product and services or in existing product. In case of L’Oréal it
establishes a particular team that handle all aspects of brand and find out loop falls that exist in
building brand. To find out loop falls their need to quickly acknowledge crisis and find out root
cause of it and accordingly take action so that permanent solution should be find out.

Not allow short-term thinking for long term values To overcome with crisis there is need to
think in long term and about in organisational perspective so before making any statement and
think about the organisation and its goals and objectives, their customer's, employees and their
stakeholders so that easily overcome from the problem should be possible (Kasemsap, 2015).
Conclusion
Branding as a marketing tool Brand work to frame an image before consumers by their
quality, accessibility and pricing and help to retain large no. of consumer. In that scenario
marketing works to spread characteristic of products to masses so that they become loyal
consumers of Optimum impression Ltd. To succeed in branding there is need to understand the
consumer's perception and needs also in that efforts of marketing helps to understand in better
manner. There is direct relationship between the branding and marketing (Kavaratzis, 2012).
Marketing and brand strategies work in integration objectives and goals. Marketing helps in
proper promotion and advertisement of features and values of goods and services so that it
become popular brand with information that is deliver by marketers by evaluating competitors
and their varied strategies that help in building brand equity.
TASK 2
1. Brand portfolio strategy:
Brand portfolio strategy is for family of brands with roles and responsibilities with
relationship with each other. In work in delivery of synergy, clarity, relevancy and differentiation
and energy. It helps in reduce risk and set to manage business units, assets or technologies.
Brand portfolio strategy is used by L'oreal to strengthen its brand image in luxurious cosmetics.
This strategy help to organisation in bring clarity, efficiency and focus in direction with growth
opportunities. Portfolio is about optimisation of hierarchy, linkages and role in brands to support
business strategy. In case of L'oreal, there are several brands in cosmetic field- L'oreal Paris,
Lauren, Diesel, Giorgio Armani, Garnier and more. Therefore, brand portfolio strategy of this
company mainly classified into four categories- Professional Products, L'Oreal Luxe, Active
Cosmetics and Consumer Goods. For an instance: In 2017, L'Oreal has launches a new hair care
products- Botanicals Fresh Care, which is available in France, UK and Germany as well as it
going to launch on global level. In addition to this, Loreal paris launch its Age perfect
Renaissance cellulaire range and mousse absolue are slated that launch in January 2019.

2. Hierarchy management of brands within organisations portfolio.
It is the framework of brand in organisation and that is also known as brand architecture.
It is related with brand associated with the organisation and differentiation with one another in
products and services. It is the integrated process in which various processes to build brand
occurs to get effective results in business. Loreal use different models of brand portfolio that are
as follows:
Branded house:
Branded house strategy in which firm is brand, in that sub brands not detract from main
brand of organisation. It helps in create strong brand and it is easily recognizable with
memorable. Examples of Branded house are FedEx, google, Apple are come under it. It is also
known as one firm brand strategy in which company have single brand logo sign, positioning and
messaging. If organisation have the goal to enhance visibility and reputation then it is fruitful to
focus on single brand (Sarkar and Sreejesh, 2014).
House of brand:
It is completely opposite from Branded house, in which sub brands of organisation
featured or promoted rather in company brand. In that hierarchy is very complex, in that mostly
businesses are consumer products or holding organisations. Example of HOB are P&G, Newell
and Mars, Unilever etc. A HOB strategy a no. of offerings that helps in reach at each and every
individual brand and in their benefits include to reach at large no. of consumers, with help of
HOB company can take risk because they have strong brand name at their back.
Loreal have an admirable ''House of brand'' strategy in which almost 20 brands in
cosmetics and skin care. It has high level of clarity, leverage so that they can promote goods in
better manner.
Basis Umbrella Brand Products
Loreal Loreal deals in cosmetics and
skin care products and it
adopts house of brand strategy.
Products of L'Oreal mainly
divided into- Haircare,
Fragrances, Skincare and
Makeup. It includes Vichy,
Diesel, Ralph Lauren and
more.

Maybelline Maybelline is a major
American make-up brand sole
at worldwide and French
cosmetics company that also
use house of brands.
It deals in various products
including make up products
and accessories. It includes
Colossal Kajal, Baby Lips,
Maybelline Liner and more.
Hierarchy management can be explained with help of Aaker brand equity model that are
as follows:
Aakar elaborates that brand value controlled and defined with help of five components
and their integration that are as follows:
Brand loyalty:
This attribute define how much consumer loyal towards the brand and higher loyalty
helps in reduce marketing cost and loyalty is something that cannot be imitate overnight and give
time to firm to respond to their competitors (Schmitt, Brakus and Zarantonello, 2014). In case
of L'Oreal it has strong brand loyalty that increase their revenue and retention also. This
company has got 133rd ranked among top multinational brands in Forbes list. Along with this,
from last 23 years, it has hold its position in Fortune 500 magazine. On the basis of market
capitalisation, it has been valued as $1.7.5 Billion (Marketing Strategy of L'Oreal, 2019).
L'Oreal has launched La Roche-Possay My Skin Track UV currently, which is the first battery-
free wearable sun safety sensor. This product offers a better life for sensitive skin and promote
good skincare practices which can be adapted to each skin type.
Brand awareness:
Brand awareness is the starting point while build brand equity, awareness works and
helps while consumer plan to purchase goods. In case of L'Oreal its logo and quality work as a
brand awareness and helps in increase their sales. Positive attitude of consumers helps to
increase brand awareness towards products and services (Scholz, 2014 ). For increasing brand
awareness, L'Oreal has offered its products in more than 130 countries. It has also provide entire
information about its brand on own website and tie-up business with some online shopping sites.
Perceived quality:
In perceived quality consist of how extent company is able to provide good quality
products and services. L'Oreal by accessing consumer needs and provides products according to

them add features in their products. Product should be considered good and qualitative by level
of differentiation in comparison to competitors brand, price of product and distribution channel
so that it can access to large no. of consumers and availability of different line and extension so
that it satisfy consumer needs and wants appropriately. For getting customer satisfaction,
Infallible makeup Foundation: data launched in marketL'Oreal has adopted a 'viral marketing
strategy'. Under this technique, brand and products are marketed by conveying marketing
strategies.
Brand associations:
In that consist of retrieve power and how much product is different from others and
association with product such as memories and positive attitude while use it. In case of L'Oreal it
by giving advertisement with first slogan i.e. 'Because I'm Worth it' which has replaced later by
'Because we're Worth It'. Here, shift of 'I' to 'we' has denoted the involvement of customer in its
brand.
Other proprietary assets:
In other proprietary assets includes trademarks, patents and channel relationships that
give important assurance to both organisation and consumers also. Under this segment, L'Oreal
has made a large investment which is near about $1000 million in R&D and approximate 498
patents.
3. Analysis of strategies used for managing equity of brands
There are different types of strategies to manage equity of brands that are as follows:
The quality never goes out:
In perspective of L'Oreal it has to always produce quality product and services is the first
and foremost strategy to build brand equity. Consumers have large no. of choices if the
organisation not give qualitative products and services then they easily switch on other products
and services. Quality enhance in loyalty of consumers towards products and services. For this
purpose, respective company has made a research in some major fields. It includes dermatology,
toxicology, tissue engineering and biopharmaceutical research. It helps in developing and
maintaining quality of its products.
Loyal to the core:
The another strategy to build brand equity L'Oreal is to build loyalty towards their
consumers. There are no. of ways to gain retention of consumers and achieve competitive