Digital Marketing Strategies and Analysis for L'Oreal Paris

This report provides a comprehensive analysis of L'Oreal's digital marketing strategies. It begins with an introduction to digital marketing and its application to L'Oreal, followed by an environmental analysis using the PESTEL framework to assess political, economic, social, technological, environmental, and legal factors impacting their digital presence. A SWOT analysis identifies the company's strengths, weaknesses, opportunities, and threats within the digital marketing landscape. The report then compares L'Oreal's digital presence with its physical store presence, examining the effectiveness of various online platforms and e-commerce strategies. A digital marketing plan is proposed, specifically targeting the luxury cosmetic division. Finally, the report outlines methods to evaluate the effectiveness of the digital marketing plan, including key performance indicators (KPIs) and monitoring techniques.

Digital Marketing

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Environmental Analysis of Digital Presence of L'Oreal..............................................................1
Opportunities and Challenges of Digital Marketing....................................................................3
TASK 2............................................................................................................................................4
Digital Presence and Physical Presence of the L'Oreal...............................................................4
TASK 3............................................................................................................................................6
Plan for Luxury cosmetic division...............................................................................................6
TASK 4............................................................................................................................................9
Methods to Evaluate the Digital Marketing Plan.........................................................................9
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Digital marketing is the process of marketing of products and services using the digital
technology. This type of marketing is performed using internet and smartphones and digital
screens. The digital way of marketing is widely used for the promotion of the company product
to reach to the larger audience. The L'Oreal Paris is a french personal care company which was
founded in year 1909 and it is selling the cosmetic product for 109 years. This company is
founded by Eugene Schueller and its headquarter is in Clichy, France. This is a multinational
company serving all across the globe (Chaffey, and Ellis-Chadwick, 2019). There are 89300
employees are serving for L'Oreal Paris.
This report is presenting the digital presence of the L'Oreal Paris and the opportunities
and challenges of company in the digital market. The effect and impact of digital marketing on
the cosmetic industry is explained. Critical comparison of online presence and physical store is
explained in the report. A digital marketing plan is given to support the L'Oreal to take initiative
to build a multi channel capabilities in luxury cosmetic division and active cosmetic division.
The key methods are provided to evaluate monitoring and measure the effectiveness for
recommendation provided in the report.
TASK 1
Environmental Analysis of Digital Presence of L'Oreal
Digital marketing is the process of marketing of the product and services through the
electronic media and internet. Digital presence of the L'Oreal Paris means, how much the L'Oreal
Paris is using the digital media for the marketing of the product. The L'Oreal Paris is using the
digital way of marketing to improve the revenue of the company (Ryan, 2016). The methods are
used for the digital marketing are content optimization using search engine optimization, social
media marketing, website optimization, television advertisement, direct mail, and cloud
technology. For the environmental analysis of the digital presence of L'Oreal PESTEL analysis is
conducted.
PESTEL analysis is the way to analysis of the digital presence of the L'Oreal. In the
PESTEL the impact of the political, economical, social, technological, environmental and legal
on the digital marketing of the L'Oreal is analyzed.
Political Factor
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The government of different countries have their own protocols for the use of internet in
various operation. This can have impact on the online marketing of the product or services. The
rules of the government decides the limitation of the use of the digital platform. This rules are
implemented to prevent the online fraud. The policies decide by the government some times
make the opportunities limited for the company to operate on online and digital platform. Some
country have their different policies for the digital platform for the marketing (Kannan, 2017).
The government set rules and regulation for the use of digital marketing for the promotion of the
product and services. This rules can affect the procedure used by the company for the online and
digital marketing of the product.
Economic Factors
The economic factors also can affect the digital and online marketing policy. Changes in
the economic policies in the country makes major impact on the business and marketing of the
L'Oreal. The changes in taxation policies can affect the online and digital promotion of product
and services of L'Oreal. The charges of the online & digital promotion and advertisements is
dependent on the economical decision of the government. The budget of the promotion is
calculated according to the current economic policies of the company.
Social Factors
The digital type of promotion is based on the market study of the target market. The
social and cultural factors have major impact on the marketing policy of the company (Järvinen,
and Karjaluoto, 2015). The online and digital promotions are based on the reviews of customers
and their personal values. If the digital marketing policy is not according to the social and
cultural values of the customer then it could affect the image of the company and this can harm
the revenue of the company. The promotion of the product and services of L'Oreal should be
according to the customer values. The use of images and quotes in the advertisement can affect
the cultural or social values of the consumer.
Technological Factors
The technologies used for the digital marketing are latest and fastest growing technology
now days. The technologies are continuously growing and updating and to match with this
technology is bit difficult for the L'Oreal. The innovation in the digital technology force the
L'Oreal to change the previous approach of marketing on the digital platform. This lead to
change in the technical devices and skilled man power in the organization. There are also some
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limitation of the digital technology which affects the methods and procedures used by the
L'Oreal (Karjaluoto, Mustonen, and Ulkuniemi, 2015).
Environmental Factor
The digital platform does not harm the environment and it is not affected by the
environment. This increases the sustainability of the company product. This promotes the saving
tree campaign, the digital platform for the marketing is promoted by the environmental factors.
Legal Factor
The legal laws and rules are designed to provide the transparency which make the online
platform more secure for the customer. There are some rules for marking using the digital
platform which are need to be followed by the company which is using the online and digital
marketing. This rules of government make the process more complex for the L'Oreal. The online
and digital promotion of product and services have some limitation because the company can't
promote something improper on the digital platform otherwise they have to face legal action.
By the PESTEL analysis we can conclude that there are some factors affect the
implementation of the digital marketing. This factors make the procedures used by the company
longer and complex. This also increase the cost of marketing to the company because the digital
marketing needs extra skilled staff and technical devices (De Pelsmacker, Van Tilburg, and
Holthof, 2018).
Opportunities and Challenges of Digital Marketing
SWOT
For the analysis of the company opportunities and challenges the swot analysis is needed.
In this the scope of the digital marketing for the L'Oreal is explained.
Strengths
In this the strengths of the company to implement the digital marketing are explained.
The staff of the L'Oreal is supporting the digital marketing so company can implement this
procedure for marketing. The product and services provided by the L'Oreal are good for the
digital marketing. The creative employees promote the use of digital platform.
Weaknesses
The digital and online marketing is the best way to promote the product and services. So,
most of the companies use the digital marketing to promote their product and services. The
competition in the digital market is high because the competitors are using the digital way of
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marketing and they have enough experience. Digital marketing process is extra costly to perform
(Masyita, and Yuliati, 2018).
Opportunities
The most of the people are using the social media and digital devices like mobiles,
computers, smartphones, television and internet. This creates the huge scope to reach to larger
audience which can make the marketing of product or service more effective. Through the digital
marketing the customer can easily provide feedback to the L'Oreal which improves the
marketing and product development.
Threats
The digital marketing also have some negative impact on the marketing of the product
and image company. The negative comment of the consumer can lead to the negative marketing.
The competitors are the threat in the digital marketing cause this can lead to negative
competition which is not good for company.
TASK 2
Digital Presence and Physical Presence of the L'Oreal
The L'Oreal is using the different digital and online platform to operate the marketing of
the product and services. The main platforms for the marketing are social media sites. The
Facebook, Twitter, Instagram. This social media platforms are used to perform the marketing.
The L'Oreal have social media accounts on Facebook, twitter and instagram to promote the
product and services.
The L'Oreal is the leading company which is using the social media and digital marketing
processes to promote their product and services. By using the social media the number of
viewers of the online promotion are in billions because the reach of the social media. The
number of user on social media is in huge numbers so this method of promotion is good for the
company. The digital platform used by the L'Oreal are television, smartphones and radio. By
using this method the number of viewer increases and this promote the product and services of
L'Oreal. The digital technology is changing the cosmetic industry and giving new dimension to
the business (Santos, Au-Yong-Oliveira, and Branco, 2018).
This has no limitations and this is improving the area of business. Using the digital
marketing the reach of the company promotion is increasing which is helping the L'Oreal to gain
more and more customers. The L'Oreal is providing the products and services for 109 years and
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now they starts to sell their products online in year 2010 and since that time the company is
growing faster. L'Oreal is using the digital platform to selling its products & services and for the
promotion of its products. The Facebook and instagram account are used by the L'Oreal to
promote the product. The accounts and pages on the social media helps the L'oreal to promote
their products and also to get the customer review which are important for the business. The
company is using the digital platform to sell the product online by using the Amazon, Flipkart,
Snapdeal and Myntra. The customers can buy the products of L'Oreal through this online sites.
To improve the online presence of L'Oreal hired 2000 digital specialist and 21000
employees to place the promotion on the digital platform. In year 2017 the budget for the digital
rise up to 38% to improve the online appearance and digital presence of the company. The digital
budget of the L'Oreal was only 19% in year 2014. This investment of the L'Oreal gives good
result to the organization by improving the number of visitor. Which is now in numbers of 1
billion per year, each year 1 billion visits the social media account of the L'Oreal. In the first
three months of year 2018 the sells of the L'Oreal increases to 34% through the E-Commerce
(Cheng, L'OREAL PARIS FRANCE, 2018).
The online selling is the main source of revenue of the company. For the regular update
in the cosmetic industry is required to match the requirement of the consumer. The L'Oreal is
using the different series of strategy to increase the business of the company through the digital
platform. The L'Oreal Paris is operating in the 130 countries and have 1130 stores all around the
world and L'Oreal have 250 million follower on the social media network. The number of
operating stores is 1130 and all are functioning good to generate the revenue. There is great
difference between the online revenue and physical store revenue. The performance of the
physical stores is better than the online revenue. The difference in the performances is result of
different factors.
The store performance of the stores is better because they provide the physical experience
of the company product and services but on the digital platform the VR services provides the
virtual experience to the customer which feels like real but not (Vasudevan, 2015). The online
stores are easily approachable to the customer which provides more convenience. The online
purchase is less expensive and there are no extra charges like transportation. People wants to buy
the products which they can feel physically this realm experience provide by the stores is the
reason of larger revenue.
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Online Stores Physical Store
Easily accessible Customer have to reach to the nearby store
Purchase procedure is faster Takes time
Physical experience is missing Provides physical experience
Less costly It cost extra expenses
Payment procedure All the payment methods are accepted
Not that much effective Effectiveness is higher.
TASK 3
Plan for Luxury cosmetic division
Situational analysis
Strength
 L'Oreal is one of the favorable brand in luxury cosmetic products.
 Quality of cosmetic products are high.
 It offers innovative products across the world.
 It has strength to operate globally by having large distribution network in more than 120
countries.
 It provides organic materials in skin and hair products.
 It has well efficient team of research and development to produce new luxury products.
 It has different range of items from having few variations in some similar products to
attract new customers.
 It has approx 20 varieties in shampoo products to attract customers and to meet their
demands ad expectations. It has approx 60,000 employees in Company to process from initial level to manufacture
products to deliver products to customers.
Weaknesses
 So many sub divisions of company and having decentralized organizational structure,
controlling of management process can not be held efficiently.
 Competition from other favorable brands is increasing and winning at cost.
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 Due to use of organic materials in making luxury cosmetic products, cost is too high. Al
people cannot afford to such type of products.
 Luxurious cosmetic product range is increasing. Customers has special demand for hair
items to have variety of products for straight hairs, curly hairs, blondes and all. It fails to
win competition. Cosmetic market has dynamic nature, its demand is changing regularly and varies from
season to season. So. Its become difficult for L'Oreal to adopt changes and take huge
amount in investment.
Threats
 Demands for new luxurious products by customers especially for skin and hair products.
It becomes threat for L'Oreal to have five star ranking in new products as they have in
existing products.
 Changes in economy of country affects profitability for L'Oreal cosmetic products.
Economy has dynamic nature. Currency value varies constantly.
 Competition is increasing and other favorable brands gaining more popularity than
L'Oreal. Public loosing trust on L'Oreal due to more percentage of chemicals in skin products that
do not suit to some people.
Opportunities
 L'Oreal has opportunity to expand its digital marketing activities to have more
profitability.
 L'Oreal has opportunity to create new products for all types of customers to win
competition.
 To expand market for active cosmetic products to rural areas too for increasing popularity
and making one of the most top brands.
Digital marketing goals: L'Oreal is one of the biggest brands in cosmetic brands. It plans to
extend its marketing of luxury cosmetic products and active cosmetic products by implementing
digital marketing activities like making digital platform, social website, email campaigns where
customer can access products' specification and solve their queries in terms of quality or any
other issue. L'Oreal has long termed vision to increase profitability in selling of luxury cosmetic
products and active cosmetic products (Widjaja, 2015).
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Marketing strategy: After defining goals for digital marketing in L'Oreal, its next step is to
define strategies through segmentation, positioning and targeting.
Segmentation is to classify the customers in group based on age, taste, climate and
behavior. L'Oreal uses. It uses demographic segmentation approach to use digital marketing
criteria. L'Oreal classify customers on the basis of age. Different groups are made of small age
group children, teenagers, young adults, adults and old one. Next step is of targeting in which
L'Oreal plans to target young adults and teenagers group because they are using mostly social
media and online platforms. L'Oreal has chosen a place for positioning is digital platform where
people can get solution for their queries regarding both luxurious and active cosmetic products
(Dodson, 2016).
Digital strategies and tactics:
L'Oreal has a plan to expand its marketing level through digital marketing activities.
Some tactics and strategies are explained below:
Social media marketing: In this, for promotion and advertisement of products, L'Oreal uses
social media channels to make people aware about their new and existing products. Luxurious
products can afford only rich people and health conscious one. So, L'Oreal uses social media
channels like Facebook. Instagram, Twitter for promoting mostly active cosmetic products. This
channel gains the attention of customers towards regular products like shampoo. Young people
are using more social media sites and this is the best way to advertise and to increase market
share.
Web optimization: In this L'Oreal uses simulation techniques for making their brad to top level
so that when people searches on net about cosmetic products, their product will be showed on
top list. This technique make people trusted and helps to solve their queries immediately. They
can directly serve to official website of L'Oreal and make a complaint or query against any
product. This also helps L'Oreal producers to take feedback from customers.
Email marketing campaigns: In this, data base is created first by digital marketing employees of
L'Oreal to have list of customers who have interest in luxurious cosmetic products. Special mails
are sent regularly to them to aware them about new products and existing products. Regular mail
campaigns to customers make them regular customers and gains trusted. This also increases
publicity and helps to increase profitability. Customers have chance to solve queries against
products through mails.
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Paid media advertising : In this L'Oreal aware public about offers made on new products and
existing products by paying them. Like to make their advertisement on you tube videos, they pay
to you tubers. Paid advertisement is also showed on television and make special attention on live
sports matches to have more profitability. This is mainly used to promote luxurious cosmetic
products. They hire popular celebrities to make advertisement to gain more popularity and more
attention of Public (Baltes, 2015).
Measuring results:
After making, planning and implementing digital marketing plan, it is necessary to
measure the effectiveness of them. So, L'Oreal uses media monitoring measuring tool to evaluate
the effectiveness. It helps to give data regarding the number of times a customer served to a
particular product. Website serving is measured. It gives the idea about customers are getting
aware or not. Like in email campaigns, some mails do not get delivered, so, it's also a measuring
tool to get list of those customers who are not getting chance to know about L'Oreal both
Luxurious and active cosmetic products. On getting ranks to a particular product like a hair
shampoo, measure the effectiveness. Feedback is also a measuring tool where both positive and
negative outcome can be measured for a specified product and also on L'Oreal industry. Back
links is another measuring tool to measure the traffic on web surfing and in searching engine. A
survey is also a tool where effectiveness of products in terms of their quality and their ingredient
materials (Keegan, and Rowley, 2017). On social media marketing, rate of interest can be
evaluated.
TASK 4
Methods to Evaluate the Digital Marketing Plan
The methods which are used to evaluate the digital marketing plan have three types.
Which are evaluation, monitoring and measuring. By using this three way the effectiveness of
the digital marketing plan can be evaluated.
The different ways to measure the effectiveness of the digital marketing plan requires the
different tools which are-
1. Website traffic
2. market survey
3. Number of Backlinks
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4. Higher rankings for specified keywords
5. Media Monitoring
Measuring Tools
The social media and digital promotion is the best way of marketing and the effectiveness of the
marketing can be evaluated by this measurement tools
Website Traffic
The number of visitor on the online website of the L'Oreal shows the effectiveness of the
digital marketing plan (Boshnakova, and Goldblatt, 2017). But in this way the list of the visitors
should be sorted by age group, time and area to make the result more effective. The content post
by the L'Oreal on the website is the reason of high or low traffic on the company website.
Market Survey
To track the effectiveness of the marketing plan it is important to launch the market
survey. The research report collected through the marketing survey states the effectiveness of the
marketing plan. This also can help to find out the feedback of the consumer.
Number of Backlinks
this is the best way to reach to the higher rankings in the search engines and it is the main
part of promotion plan of the company product. The content posted by the company is interesting
for the consumer than the backlinks metric is the best way to calculate the viewer on the
company website (Cicero, Chiarvesio, and Crisci, 2016).
Higher rankings for Specified Key Word
The keywords can be used to calculate the specific words which the company wants to
rank. If the specific words are not used then the traffic on the company website will reduce and
this can affect the business and revenue of the L'Oreal. The research is required to know the
proper keyword which is relevant for the company to improve the traffic on the company
website. If the results are not coming proper then there may have problem in the marketing
system.
Media Monitoring
to monitor the digital marketing plan is the part of the promotion plan of the company.
For the monitoring the matrices, target titles and audience reached is requires mainly
(Zimmerman, and Ng, 2015). The media monitoring is the process to learn, read, watch and hear
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of resource data. The special keyword are required to identified and check for evaluation. This is
important for the L'Oreal to perform this to get more information about the consumers.
Methods of Evaluation
Return on Investment
The investment is required in the each business. For the evaluation of the digital
marketing plan the measurement of the investment is required. The amount spent as the
investment should be measured to keep the track on the return profit to know the effectiveness of
the digital marketing plan of the L'Oreal. The overall profit from the marketing plan will state the
effectiveness of the marketing plan (Vellas, 2016).
Reviewing Sales Number
this the best and easiest way to calculate the effectiveness of the digital marketing plan.
By calculating the total number of sales of the company product after implementing the
marketing plan. If the sales are increasing after the implementation of the digital marketing plan
means the effectiveness of the plan is higher and if the sales are reducing then the plan is not
effective for the L'Oreal. The positive effect of the digital marketing plan can be evaluated by
reviewing the total number of sales of the company.
Customer Response and Reaction
The reviews of the customers is also a way to know the effectiveness of the marketing
plan of the company. If the review of the customers are sin favor of the L'Oreal then the
effectiveness of the marketing plan is higher.
Marketing Reach Expansion
In this, if the reach of the company is expanding it means the plan implemented by the
L'Oreal is effective and good for the company revenue. The expansion of the company reach
shows the effectiveness of the plan which is developed to increase the online sales of the
company (Katy Lewis. 2019).
Marketing Plan Response
The marketing partners will state the effectiveness of the marketing plan by evaluating
the work procedures. This reaction of the associates shows the plan is working good for the
company.
Actions of Competitors
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The action of the competitors show the effectiveness of the marketing plan of the
company. The certain action of the competitors indicate their sales are affecting cause of the
marketing plan of L'Oreal.
Monitoring Tools
The different tools to monitor the marketing plan are-
Target Market Sales
The effectiveness of the marketing plan can be evaluated by the reviewing the target sales
are achieved or not. If the target of sales are achieved than the plan can be concluded as effective
plan.
Market Share Milestones
The target of the milestones of the market share is achieved by the L'Oreal shows that the
plan implemented to improve the effectiveness of the digital or online marketing for the sales.
The important thing is to achieve the target with in the time limit.
CONCLUSION
This report is concluding the impact of the environment on the digital presence of the
company. This report is evaluating the effectiveness of the online presence and physical presence
of the L'Oreal. The marketing plan is formed to improve the online sales of the company and the
methods used in the digital marketing plan are evaluated by different tools.
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