MBA404 Consumer Behavior: Analyzing L'Oreal Paris Marketing Strategy

This report analyzes L'Oreal Paris's marketing strategy for its Fall Resist 3X anti-hair fall shampoo using consumer behavior concepts. It evaluates the company's marketing campaigns, pricing, and promotional efforts in relation to consumer perceptions, economic conditions, personal preferences, group influences, and social class. The report uses survey data and video analysis to assess the alignment of the company's marketing focus with consumer behavioral factors. Findings indicate areas for improvement, particularly in promotional campaigns and enhancing customer value perception. The report recommends strategic adjustments, including increased promotion in emerging markets and addressing negative feedback to improve customer loyalty. Desklib offers a variety of resources including past papers and solved assignments.

Running Head: CONSUMER BEHAVIOR
Consumer Behavior
Name of the Student
Name of the University
Author Note

1CONSUMER BEHAVIOR
Executive Summary
The present report is aimed at demonstrating an understanding and application of various
consumer behavior concepts and theories by analyzing the facts gathered from the video and the
survey of previous assessments and present strategic recommendations. The report incorporates
recent peer-reviewed literature in order to justify the proposed recommendations. The selected
brand is L’Oreal Paris and the product is fall resist 3X anti-hair fall shampoo.
The report critically analyses the company’s current marketing strategy and marketing
communication mix and its alignment to the findings in assessment 1 and 2. The findings from
the previous assessments suggest areas where there are improvements required. Although
L’Oreal is a brand that has received the endorsements of celebrities and has promoted itself in a
grand manner in various places, the specific product L’Oreal Paris Fall repair 3X anti hair fall
shampoo requires some more promotional campaigns.
The results from the survey validated this point. Another fact has been found from the
survey that in terms of offering great value and keeping the clients motivated and inclined
towards the organization, maximum respondents disagreed. It means that the brand needs to
focus more on this area in future for providing better buying experience to the customers. Lastly
another area to be taken seriously is the spreading of positive or negative messages and
information regarding the brand products to its potential customers. More specifically, it
determines if identified consumer behavioral factors in previous assessments align with
company’s current marketing focus.

2CONSUMER BEHAVIOR
Table of Contents
The selected product overview........................................................................................................3
Critical Analysis..............................................................................................................................3
The marketing campaigns........................................................................................................4
The economic condition / affordability...................................................................................4
The personal preferences.........................................................................................................5
The group Influence.................................................................................................................5
Social class...............................................................................................................................6
The purchase behavior satisfaction..........................................................................................6
L’O`real’s Current marketing strategy............................................................................................6
Recommendations............................................................................................................................8
Reference.......................................................................................................................................11

3CONSUMER BEHAVIOR
The selected product overview
L’Or`eal S.A is a France based personal care company the headquarter of which is
located in Clichy, Hauts –de –Seine. The company was founded by Eugene Schueller in the year
1909. The CEO of the company is Jean –Paul Agon and by the year 2017, the company has
gathered revenues up to 4. 676 billion Euros. It has been considered as one of the largest brands
in the cosmetics industry and the products of the company range from hair color, sun protection,
skin care, perfume, make up and others. The new innovation of the company is the fall resist 3X
anti-hair fall shampoo (Loreal.com 2019).
The innovative components in the product are Arginin which is essential for hair growth
and nourishment along with creating micro circulation in the scalp. The protein used helps to
rebuild the hair fibre in depth for resistant and stronger hair. The results have shown that this
product strengthens the roots of hair and the hair looks heathier and beautiful. The new formula
facilitates a triple –anti-hair fall action. The usage of the product is easy. The steps are- wet the
hair and scalp, massage the shampoo for 5 minutes and rinse off. This new product is a
revolutionary innovation in the entire history of L’Oreal (Loreal.com 2019. The report will
demonstrate an understanding and application of various consumer behavior concepts and
theories by analysing the facts gathered from the video and the survey, and present strategic
recommendations. It will also determine if identified consumer behavioral factors in previous
assessments align with company’s current marketing focus.

4CONSUMER BEHAVIOR
Critical Analysis
The business world of today has recognized that the power of the consumers is the
supreme and their sovereignty prevails (Campo and Breugelmans 2015). Consumer is not a
simple entity its power can either make or break an organization. The behavior of a consumer is
a predictive approach that can be evaluated by his acquiring, using and disposing a good or
services (Chang 2015). The behaviors of a person are an observable action that springs up from
the long held beliefs, values, emotions, wishes and emotions. According to the views of
Marshallian Economics, the study of the consumer behaviors can help the business professionals
to gain the knowledge regarding how to develop effective communication which motivates
buyers to purchase product and services (Chen and Shen 2015). Freud is of the opinion that
humans are not able to completely understand the motivations of their own because there are
some psychological factors which shapes their unconscious mind. However, the buying decisions
and actions are influenced by few factors (Fernández-Ferrín et al. 2015). These are the factors
which drive a customer to choose a particular product. It has been find that most of the
purchasing process involves the reasoning and emotions. The study of the consumer behaviors
helps to understand the past as well as the future of a particular product. These are as follows:
The marketing campaigns
The advertisement of a particular product plays a greater role in the purchasing decisions
of the buyers. The advertisements also bring about a huge shift in the market shares in the
industry after influencing the buying decisions of the customers. The marketing campaigns of a
company conducted on regular basis influences the buying behavior of the consumers up to such
an extent that their preference of brand can be changed or get indulged in frivolous shopping (Ji
and Yang 2017). The marketing campaigns create a brand image in the psychology of the buyers.

5CONSUMER BEHAVIOR
The economic condition / affordability
The economic condition of the buyer also determines the buying behaviors of a product.
The economic situation prevailing in the market determines whether the consumer will have
indulged by the product or not. A customer at first, analyses his /her buying power before opting
for a product. The product might be good but if it is too high for the customer and goes beyond
the buying capacity of the buyer, it might leave impact on the sales.
The personal preferences
as far as personal preference is concerned, it is influenced by various shades of priorities,
dislikes, likes, morals and values. In a dynamic industry including the personal care, fashion,
food and opinion, the style of the consumers, can pose as serious factors of influencing the
buying behaviors.
Image-1 – Consumer buying behavior framework
Source – (Bagozzi et al. 2016)
The group Influence
It is another factor which determines the buying behaviors of the customers
(Janakiraman, Syrdal and Freling 2016). The primary influential group consists of the

6CONSUMER BEHAVIOR
classmates, friends, family members and the immediate relatives whereas the secondary
influential group consists of the acquaintances and neighbors which leaves greater impact on the
psychology of the buyer. Taken for instance, the mass preference of the fast food over the home
cooked food and the popularity of SUVs have made the market for the products.
Social class
The social groups to which a person belongs are defined as the social classes which
influence them. In the social classes people with similar values, behaviors and lifestyles are
found. Hence, the marketing activities are also tailored by the class he belongs to (Teng and
Wang 2015).
The purchase behavior satisfaction
Most of the times, the post purchase reflection and satisfaction helps repeated purchase of
a particular product. The learning process is also integrated with the buying behavior of the
consumers (Solomon et al. 2017). It determines their future purchase and usage experience.
Source – (Chen and Shen 2015)

7CONSUMER BEHAVIOR
L’O`real’s Current marketing strategy
The mission of the brand is to celebrate beauty for all men and women worldwide by
offering the best quality products at affordable range. It terms of efficacy, safety, innovation and
affordability, the brand focuses on staying at the top. The products of the company help to satisfy
the desires of the customers, their beauty needs and their infinite variety.
The strategy of the company is concentrated on the universalization of the products. It is
another name for the globalization that captures, respects and understands the differences. The
difference in the desires, traditions and needs (Djafarova and Rushworth 2017). The L’Or`eal
company is driven by the traditions, tailored beauty of the world. The marketing mix is a tool
that will help to analyze L’Oreal’s marketing strategy and the 4Ps (PRODUCT, PRICE, PLACE
& PROMOTION).
As assessed from the findings of the previous assignment survey and video presentation,
perception of individuals, attitudes, behaviors, motivation, culture, group and individual
differences along with family and lifestyle behavioors that are responsible for influencing the
consumer buying behaviors for the FMCG product named L’Oreal Paris Fall repair 3X anti hair
fall shampoo by L’Oreal, Australia. The survey monkey tool was used to in the survey. 66 .67 %
of the respondents strongly agreed that the consumer perceptions can have huge impact on the
buying behaviors. The survey also revealed that maximum people agreed that the price and
product quality of L’Oreal Paris Fall repair 3X anti hair fall shampoo can influence the attitudes
and behaviours of consumers regarding their purchase of products and services. As far as price is
concerned, the respondents have agreed that the anti-hair fall shampoo is available at lowers
costs along with its nourishing components.

8CONSUMER BEHAVIOR
The product has also offered great value to the customers as far as proper pricing and
good quality is concerned. It has rather motivated the staffs to buy the products persistently from
the company. When the question of L’Oreal’s adoption to the local culture catering to the tastes
and preferences of the customers came, it became found that the brand has maintained a
sustainable status in the Australian FMCG industry. 46.67 % people agreed to this fact. The
product types have changed according to the places satisfying the place based needs of the
customers. Almost 33.33% people agreed to the statement that family influence and lifestyle
behaviours are responsible for influencing consumer’s decisions of buying the product.
Innovation has already been considered as one of the strongest points of the brand. 40 %
respondents agreed that L’Oreal is actually successful in managing its innovative approaches to
align with the changing customer behaviors and demands.
However, as the survey results identified the strong areas of the marketing strategy of the
brand along with the areas where there are improvements required. Although L’Oreal is a brand
that has received the endorsements of celebrities and has promoted itself in a grand manner in
various places, the specific product L’Oreal Paris Fall repair 3X anti hair fall shampoo required
some more promotional campaigns. The results from the survey validated this point. Another
fact has been found from the survey that in terms of offering great value and keeping the clients
motivated and inclined towards the organization, maximum respondents disagreed. It means that
the brand needs to focus more on this area in future for providing better buying experience to the
customers (Bagozzi et al. 2016). Lastly another area to be taken seriously is the spreading of
positive or negative messages and information regarding the brand products to its potential
customers.

9CONSUMER BEHAVIOR
Recommendations
After the analysis of the theories of consumer behavior and concepts along with
examining the success of the L’Oreal brand /product in aligning with the determinants of
consumer buying decisions, it can be recommended that:
 In order to address its promotional demands, the company should promote
L’Oreal Paris Fall repair 3X anti hair fall shampoo more in countries like India.
India is booming up as one of the top 5 global hubs. Recently, the Garnier band
of the company has proved to be a great hit. The company should increase its
investment on this particular product as India is among the greatest cosmetic
markets in the world. The spending power of women along with the
consciousness among men are increasing up to greater extent. This particular
product should also be promoted in full swing in African subcontinents. The
wealth class of this country is also rising. The country is growing in awareness,
education and economy too. Hence, the declining sales of the L’Oreal company
can be handled well if focused on these parts of the world.
 In order to deliver more value to the customers by its product offerings the
L’Oreal brand can increase per customer sales of the L’Oreal Paris Fall repair 3X
anti hair fall shampoo. The company can use the tactics of cross-selling and
upselling. The comoay an also conduct usage stimulation and down –sells too.
The cashback process is an effective method which can be saved in the L’Oreal
account of the potential /loyal customers. On each purchase of the product they
will be able to save some percentage of cost which would be used in future for the
purchase of the same product. The circle will keep on going and the sales as well.

10CONSUMER BEHAVIOR
 The positive word of mouth marketing can be increased by firstly identifying and
target the influencers. An influencer is the person who is able to promote the
message and the brand through social media and blogs. They are the experts of
driving action and not just the awareness. The right message needs to be spread
before spreading of the wrong news. Through the message the brand should
connect emotionally with the consumers. Then it will have to hold consistent
festive events to stay engaged with the communities. The direct interaction with
the customers will increase the customer loyalty rates. Following up of the
customer reviews will help the brand to create a positive image and reduce the
possibility of spreading negative messages regarding the product.
 The L’Oreal company can streamline the referral process. It is the process of
tracking how many people have had a great experience with the company, but
ultimately became busy and forgot to refer. It is likely that the customers got busy
and forgot to spread the good news about a product or a company. The L’Oreal
company can encourage the customers to refer to them simply. It can start the
card printing referral process and provide cards to the customers once they leave
their store. These cards along with an incentive system can strengthen the sharing
process. The use of technology can also help to create the online referral forms
linked to the recipient’s emails.
 The company should always stay proactive by giving the customers an effective
way to share their experiences. The negative reviews on the public media sites
cannot be deleted but they can be handled in the best possible way by the
company. The company should address the comments rectifying their issue and

11CONSUMER BEHAVIOR
even offer their money back (exceptional cases). In this manner they can create a
positive word –of-mouth image.

12CONSUMER BEHAVIOR
Reference
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13CONSUMER BEHAVIOR
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