Evaluating Digital Marketing Effectiveness: L'Oreal Case Study Report

This report provides a comprehensive analysis of L'Oreal's digital marketing strategies. It begins with an introduction to digital marketing and its impact on the cosmetic industry, followed by a PESTLE analysis of L'Oreal. The report then delves into the challenges and opportunities in the digital environment, including consumer behavior and team allocation. A key focus is the comparison between L'Oreal's digital presence and its physical store presence, highlighting the differences and advantages of each. The report also explores the planning and organization of digital marketing activities, including the use of various digital channels like social media and websites. Finally, it evaluates the effectiveness of L'Oreal's digital marketing efforts, including monitoring and measurement methods, concluding with recommendations for improvement. The report emphasizes how L'Oreal leverages digital platforms to enhance customer engagement and brand reputation.

Digital Marketing

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Impact of digital environment on L'Oreal cosmetic industry .....................................................3
TASK 2............................................................................................................................................6
Comparing digital presence to stores presence in context to L'Oreal.........................................6
TASK 3............................................................................................................................................7
Planning for organising digital marketing activities for the L'Oreal...........................................7
TASK 4..........................................................................................................................................10
Evaluate, monitor and measures of digital marketing effectiveness ........................................10
CONCLUSION .............................................................................................................................13
REFRENCES ................................................................................................................................14

INTRODUCTION
Digital marketing is number of digital tactics and channels which connect customers and
company. The term digital technology which is used for promoting products and services through
various modes through which customer can purchase product according to their needs and budget in
effective manner (Chester and Montgomery, 2008). Thus digital technologies which includes
internet, smart phones, advertisement and many more. Digital marketing is also known as online
marketing or web marketing. This report is based on L'Oreal, the company founder is Eugene
Schueller and which was establish in 1909. It is multinational company and its headquarter is in
Clichy, Paris. In report it is mentioned about the impact of digital environment on organisation,
challenges faced by digital marketing, digital marketing activities and which builds multi channels
capabilities in organisation and measures, methods of monitoring digital marketing . Methods and
plan to evaluate the effectiveness of digital marketing of organisation.
TASK 1
Impact of digital environment on L'Oreal cosmetic industry
Digital Marketing is a modern concept of marketing team of L'Oreal which promotes their
products, services and brands by using various digital channels by reaching end users. There are
various digital channels such as websites, social media, mobile app and moreover sales as well as
marketing. Its main motivation is to attract more customer and providing best services to its
customer in effective manner. Its aid is to develop customer relations by using electronic customer
relationship management. In reference to L'Oreal the company marketing team uses digital modes
to increase customer base and product services for enhancing their profit margin (Järvinen and
Karjaluoto, 2015). Along with this in L'Oreal, environmental analysis identifies its competitors by
using PESTLE analysis. Thus PESTLE includes different factors such as political, economic, social
and technological. Hence it is been discussed in detailed below:-
PESTLE Analysis of L'Oreal
P- Political: Political factors which include policies, rules and regulation of government
which are applicable on the organisations. In reference to L'Oreal they should follow government
policies and rules of various countries through which various services and product can be delivered
at global level. Moreover, it is a manufacturing company in Paris, so it is necessary that they need to
follow rules and regulation of France government. It directly affects companies growth and
reputation (Kannan, 2017). L'Oreal is a successful company which has good digital presence

through social media and other networking sites due to which political issues can hardly affect its
business. More over it is an international brand company and it includes various countries rules and
regulation which is majorly time consuming. It has positive impact due to which new companies get
influenced to enter into UK market of cosmetic industry.
E- Economical : The economic factor which includes inflation rates, taxation, deflation and
many more. The L'Oreal has developed its brand effectively and also made an effective growth in
many countries. Those countries which are economical strong has political stability such company
like L'Oreal can invest and made effective digital presence to enhance its growth in proper manner.
Through which inflation rates which can balance and create higher opportunity to establish strong
infrastructure in various countries.
S- Social : It includes values, cultures and beliefs of an individuals. In reference to L'Oreal it
is necessary that information and data which is collected by company should be based on actual
facts and the marketers of L'Oreal which need to create a positive advertisement and also conduct
social media campaigns which encourage and inspire the customer to busy the products. The
biggest opportunities of L'Oreal is that it is one of the international brand, because of which
customer blindly trust in its product which ultimately increase the sale of products and create
large number of customer base. More over through this the impact on digital environment will be
that L'Oreal is one of brand which strictly follow all rules and regulations by which profit is created
which will aid the company to work for the betterment of society.
T- Technological: In referred to organisation technology which play an important role for
growing the business in effective manner. In L'Oreal marketing team which uses digital marketing
which aid to expand its business at global level and hence it attract the potential customer towards
their brand and products by different advertisements . It aids to drive research work and innovation
in their products design and packing which aid them to sustain in a competitive market. They
created positive goodwill about their brands at international level. Hence now L'Oreal is working
not only in offline but also expand its brand image digitally and it created a huge positive impact on
the minds of customer towards their product quality and services (Karjaluoto, Ulkuniemi and
Mustonen, 2015).
L-Legal : It includes all legal laws which made positive impact on business operation and
customer behaviour. The company L'Oreal is a successful company which is working in effective
manner. It is necessary for the company to consider all legal provisions and laws which aid them to
delivering right products to its customer, hence the opportunities for L'Oreal is that this company is
making all products according to laws and regulation which does not harm consumer while using
the products of L'Oreal. If the company work according to the laws and regulations then it can
create loyal customers towards their brand which is ultimately create positive impact on digital

environment and people will have trust on L'Oreal product which will aid to purchase their products
which will increase the sale of products in effective manner.
E-Environmental : The main motive is to follow global environment safety laws which
makes planets beautiful on earth. In reference to L'Oreal which is concerned about its goodwill and
working according to laws which does not affect the environment in negative manner. So it is
opportunity for L'Oreal to compared their products with other rivals in cosmetic industry. L'Oreal
product are eco friendly and it is also concerned about environment development that is why less
chemical component are used into their products because of which it increased customer trust of
and brand image in a competitive market.
Opportunities in Digital Environment: In cosmetic company L'Oreal which is best beauty
company with various product and has great opportunities for expanding their business at global
level company need make modification in digital marketing activities. They used digital
promotional activities like sub channels to expand their brand and product in a competitative
market. Hence they can provide information by advertisement their products on social media,
websites, which will able to grab attention of customers.
Challenges faced in Digital Environment: There are many challenges which are faced by
company in day to day operations. But major issues regarding digital environment is linkage of
data of customers. L'Oreal which uses informations and data for improving customer quality
products and to work effectively for growth of company .There are various software like Microsoft
big data solution, Oracle big data solution and many more. The challenges which are faced by
L'Oreal in digital environment which are as mentioned below:-
 Analysing the behaviour of digital consumers: In present world, customers uses digital
media through they collect informations about various offers of products or services of
different brands. In context to L'Oreal which generate new ideas and innovations in their
products to attract potential customer in effective manner, through their new ideas and
innovations which fulfilled the requirements of customer (Kierzkowski, Quade, 1996). The
challenge which is faced by company is that many customer which does have much
knowledge about products which the company is delivering, so for that product description
which need to mentioned below the product image which will aid customer to avail
information in appropriate manner. More over many consumer are still not aware about
digital online services and due to which proper information cant be gathered from
customers. Now a days marketers communicate customer through social media applications
like Facebook, twitter and many more. Many people are not aware about these sites this is
one of the big challenge which is faced by L'Oreal company in day to day operations.
 Right team allocation: L'Oreal company which has adopted digital marketing for

expanding their business as they have to allocate skilled and talented team at right place for
collecting information about their products and services from their potential customer. The
Team of L'Oreal uses modern marketing for enhancing their profitably and growth of
business. The major challenge which is faced by company is lack of coordination among
employees which affect the company growth and reputation.
 Impact of Digital Environment: New platforms are being created to deliver products and
service to customer that is social media such as Facebook, Twitter and Instagram for
promoting their brand. As per above mentioned PESEL analysis the challenges and
opportunities which is faced by L'Oreal company which impact the business growth and
reputation. Hence this company is working internally and making their products according
to needs and desires of customers and their product is eco friendly and less chemical added
in the products. So digital presence of this company working effective and also connected
large customer base through online services.
TASK 2
Comparing digital presence to stores presence in context to L'Oreal
Many companies which used various digital marketing techniques with this company can
aid growth in their service and increase brand reputation. Various mode of digital mode is
Facebook, Instagram and many more. Digital media is a best platform which aid customer to share
their open opinion about the products and services which are going to delivered to them. They have
power to give suggestions regarding to products and services, which will aid to improve their
services and customer will be satisfied with its products. If the company which do not take
feedbacks from customer which will directly affect customer growth and also affect goodwill of
company. So it is necessary that marketing team which should make changes in tool and techniques
in effective manner (Patrutiu, Baltes, 2015). More over company should resolve issues of customer
and should make proper changes for growth of company and also make effective step to resolve
their quarries in proper manner. The difference between store presence and business presences
which are mentioned below
Store presence: The Store presence means physical and tangible products which are kept in
stores and customer which make decisions after analysing the product. The physical presence of
products at stores which aid the customer to purchase according to their needs and demand of
customer. In stores there are various brands products which are set to attract customers to buy
according to their budget. L'Oreal products which sells aspirations and unique experience associated
with their products. Hence those customer which are not knowledgable about social media they can
buy products from shops and stores many times due lack of trust in social media people prefer to

purchase products from stores. More over L'Oreal being best in beauty and innovation also in
technology which keep them best retail channels among all competitors of cosmetic.
Digital presence: It means those products which shown in pictorial form in various websites
and links through which customer can visit their online sites and customer can decide to buy
products according to their need and demand. In digital presence user can buy products from one
place which is convenient and easy to buy products. Hence L'Oreal is using online platforms to
reach customer and professionals and also by using digital online platforms which will bring
different messages across the world about L'Oreal products more over various channels which
correctly bring different messages across to different range of target groups. (Royle and Laing ,
2014)
As per above mentioned difference among digital presence and store presence is that
customers is more convenient in offline shopping because trends and technologies have changed
users are also convenient in using online products of L'Oreal. There are various tools and techniques
for expanding digital marketing. In the present world, there are various techniques by which
digital marketing can be useful for customers as well as for company. In context to L'Oreal digital
presence which aid customer to find a right products according to their budget and which is more
convenient and helpful for both customer and company.
TASK 3
Planning for organising digital marketing activities for the L'Oreal
Digital Marketing Plan
Executive Summary: Digital marketing plan which provides short synopsis of entire digital
marketing strategy. It is been discussed about the issues that have emerged from situation analysis .
The key objectives of digital marketing plan is to help business to achieve growth in effective
manner. The main aim of L'Oreal company is to provide best quality and safety products to
customer.
The Vision statement of L'Oreal is to create value of its product among customer and sell the
product who really deserves quality products. Mission of L'Oreal is that it do not only add value to
its business but also improves skills of its employees in the organisation. Marketing plan of L'Oreal
is made for only beauty and cosmetic products.
Business Initiative – L'Oreal which is maintaining its brand image in effective manner in a
competitive market which results to higher competition among various companies. It is difficult to
make changes in function to their products which is carried out. L'Oreal is using traditional strategy
which is necessary for them to adopt digital marketing media through which customer can be
gained. Hence that is why L'Oreal which has adopted digital strategy for marketing their products

which is luxury cosmetic division and active cosmetics divisions .
Situational analysis
Strength: The strength of L'Oreal is that it is an international brand, which has variety of
products which are been offered to customer in effective manner. The customer of this company is
satisfied with the brand and its quality. In the present world, digital marketing is playing an
important role for development of business. L'Oreal is expanding its product on online websites
which helps customer to identify a correct product according to their needs and budget (Ryan,
2016.)
Active Cosmetic division: L'Oreal which make their products which is customised and which
attract through online services customer can able to get knowledge about the products like haircare,
skin care and many more division done according to customer requirements.
Luxury Cosmetic division: L'Oreal expanding their business in online mode which provides
different discounts on various luxury products and also cash back positions for higher purchase of
prices which encourage customers to buy the products of L'Oreal. Hence through this strategy
company easily increase their profit margin in effective manner. So digital marketing play an
important role for developing the business.
Weaknesses: The drawback which can be seen about the company is that there are lack of
skilled and professional labours so that is why in past records of L'Oreal, the brand cant able to
adopt digital marketing hence due to lack of workforce and more experiences worker. It is biggest
problem that is faced L'Oreal.
Active Cosmetic division: The products which are customised according to needs and
demands of customer. L'Oreal products are high quality and expensive and most of the individual
which can not able to afford the products. More over many people are also not aware about
knowledge about online applications.
Luxury Cosmetic division: Products of luxury cosmetic division of L'Oreal which has
branded and has luxury product items hence every individual cant afford the products due to high
prices.
Opportunities: L'Oreal has captured large number of customers which aid this company to
increase their profitability more then that it has big opportunity to expand its business at global
level. That main reason is that the company has number of customer base which has trust towards
this brand and its product. Along with this people can also find L'Oreal products better then other
rivals which are present in competitive market.
Active Cosmetic division: The products which are available offline and online of various
brands with different design and packaging which attracts customer. There is a tough competition
among various competitors in cosmetic industry which are present in the market place.

Luxury Cosmetic division: In some of the cases some of Luxury items which high cost and
many customers which cant buy the products so at that time many company strategy is to adopt
discount and cost cutting strategy.
Threats: Each and every company has competitors and has threats in the market place. So
L'Oreal is also having rivals from other firms which is dealing in same sector and in same industry.
The main problem is that other competitor companies which has been adopted same strategies for
promoting their products. The main competitors of L'Oreal are Nivea, Lakme, Maybline, Huda
beauty etc.
Active Cosmetic division : In cosmetic different brand and their products is differentiated
according to customer purchasing power capacity. So many competitors which make such products
according to customer need and demand. L'Oreal are which making innovating products according
to customer need and demand.
Luxury Cosmetic division: In Luxury items of product there are many users who use branded
and expensive products so for them high quality and high price products need to made.
Targeting customers as well as market – L'Oreal company headquarter is in France which
render various service in different countries, So that they can attract more customers with different
product offers. Clients of L'Oreal are explored the whole economy through digital marketing. They
adopted this strategies in previous year. It was time consuming and not easy to adopt digital
marketing tools for better effectiveness. The strategy that people read about each and every new
product of L'Oreal which is possible, when news is displayed on digital media which mostly people
use in their daily life. L'Oreal itself is brand and international company which is running their
business in all over world. They majorly modify their products and innovate according to customer
need and desire. L'Oreal mainly focusing on teenage and adult girls and women which are found of
cosmetic products (Smith, 2011). The strategies which are adopted by L'Oreal company is that each
and every products of L'Oreal which is launched according to potential customer buying behaviour.
In active cosmetic division many products are according to customer need and demand.
Budget strategies – Digital marketing which aid to increase profit margin and also helps
L'Oreal to maintain their price. Hence this company which do not pay higher cost as it is their
strategy because they use price which are moderated and customer which can afford their product
easily. Whereas budget is mainly used for hiring experts and professional in their company because
they have knowledge about company and concept of digital marketing. They also required sufficient
investment funds which is around £30000 by providing training facilities to their employees which
will ultimately increase the performance of worker in effectively manner. Hence these are some of
strategies which aid company to differentiate their active and luxury products according to customer
need and demand.

Marketing Strategy – Company like L'Oreal which uses marketing strategies, that is existing
product and which are sold in the existing market. This aid to gain higher market share. By
adopting this strategies L'Oreal which can able to attract large number of customer in effective
manner. Consumers which are provided to existing with new luxury cosmetic products by L'Oreal
their demand is product which suits them. By increasing higher price from their competitors can
also gain higher profit margin the main reason is that they have captured the minds of customer and
satisfied with high quality product and services. Therefore, this market strategy they can easily gain
large number of customer and aid to enhance their market share.
Marketing channels – Marketing channels which is used by L'Oreal by various digital media
tools like Facebook, Instagram, Twitter and many more. It creates an effective relationship among
their potential customers (Stephen, 2016). Digital marketing is an important tool of which helps
L'Oreal to update their varies products and informations on their websites on various digital
channels through which customer can easily be attracted towards their product offers. More over
this will help customers to give their views and opinions towards the products which they are using
of L'Oreal brand and through customer feedback they can able to improve and make changes in
their products (Taiminen and Karjaluoto, 2015).
As per above mentioned various digital marketing tools which aid to organise L'Oreal to
improve their products according to customer need and desires. Hence by using social media tools
L'Oreal can expand and capture large number of customer from various countries, states and
regions. Ultimately they can gain more profit in effective manner. More over active and luxury
cosmetic products can be differentiated in online and offline services also.
TASK 4
Evaluate, monitor and measures of digital marketing effectiveness
To evaluate effectiveness of digital marketing there are various methods which are adopted
by L'Oreal company. In reference to L'Oreal in terms of luxury and active cosmetics division, some
of methods are mentioned below:
Evaluation of effectiveness of digital marketing: There are different strategies which are
used by L'Oreal in their operational activities which aid them to run their business smoothly. It is
necessary for company to use various strategies according to market condition. In context to beauty
and cosmetic industry it is driven to several ways:
 Examining the objectives and goals of L'Oreal through digital marketing: This is one of
important part of company that is to identify objectives and goals and objectives of business.
In the initial stage it is necessary that firm is need to develop their strategies to attain their
goals in effective manner. There are different ways by which L'Oreal can achieve their

objectives by using digital marketing tools, which are been mentioned below:
 Large number of customer they pursue L'Oreal on various social media channels in internet
site, websites and many more.
 Positive and negative feedbacks of consumers which are there in L'Oreal website and
through these reviews L'Oreal can innovate and modify their products, hence through which
objectives can be achieved ultimately. Hence through these measures digital marketing
which can enhance. Through customer feedback company can make changes in product
packing and design which also create positive impact on L'Oreal users. When new
customers visit websites of the company, they can go through the past reviews and analyse
the inclusion of comments that have been provided by the long term buyers.
If company set their goals and objectives earlier then it is difficult to analyse the target
customer needs and desires, So for modify with different strategies it is essential for the company
to make proper plan to overcome issues. So in respect to L'Oreal digital marketing manager need to
identify existing strategies which will aid to accomplish their present goals as well as future goals
(Taken Smith, 2012).To achieve new objectives it is necessary for company to modify their
strategies in effective manner.
Analysing Digital marketing return on Interest (ROI): The final step is to analyse the
performance of digital marketing in terms of ROI. The two main elements which are need to
evaluate that is :
 Investment of total amount of L'Oreal funds in their digital campaigns and awareness
programmes. Financial benefits by communicating. Monitoring effectiveness of Digital Marketing: For monitoring the performance regarding to
digital marketing, there are various ways which are used by L'Oreal. Hence some of the
ways are discussed below: L’Oreal is able to engage their users: Through various tools and techniques of marketing,
customers can actively participate through which company can maintain healthy
relationship with them in effective manner. Social media which is the best way of sharing
knowledge and awareness about its products and services to its potential customers.
 Are you providing value to conversation: Digital marketing mangers need to create catchy
tag lines which attract customer and give positive message to its customers. Hence through
which customer base can be increased. The tag line should be decent and which can easily
influence its brand name and identify in effective way. L'Oreal company need to make
effective changes as mentioned in digital marketing plan. Through situational analyses it
will help the L'Oreal company to expand their business in effective manner

 Measuring effectiveness of Digital Marketing: For brand company like L'Oreal digital
marketing will help to measure effectiveness in their business growth in many ways. Some
of several ways are as follow:
 Site visits : In reference to L'Oreal aid to get a rough idea about traffic and number of
visitors on site which goes decline and find solution to its customer issues and also
improves in their strategies. The digital marketing of L'Oreal which made effective way to
make changes in product design and also helps to connect with customers through websites. Traffic by channels: L'Oreal which need to link with single person who is doing actual
marketing events. There are various channels of market campaigns which are present in
some of them are been discussed below: Direct visitors: In context to L'Oreal direct visitors are those persons who are aware and
knowledgable about their products and services which are launched in market. They reach
to various sites through URL in web browser and by which information are gathered.
 Bounce rate: These are those people who visits various websites but didn't get any
meaningful return and meaningful solution. If bounce rates goes high it means that there is
large number of fluctuation in digital marketing that can be a result of different factors like
irrelevant traffic, poor camping, weak landing pages and so on (Wang and Tang, 2003).
CONCLUSION
As per above mentioned detailed assignment, it can be concluded that company process of
digital promotions which lead to major critical role for development of business and which create
effective growth in company. By adopting digital marketing which gained more new customers and
has raised to higher profit and growth opportunities for many beauty and cosmetic industry.