A Critical Assessment of L'Oreal's Digital Marketing Strategies Report

This report provides a comprehensive analysis of L'Oreal's digital marketing strategy, focusing on the opportunities, challenges, and impact of the digital environment on the cosmetic industry. It begins with an introduction to digital marketing and its significance for companies like L'Oreal, followed by a PESTLE analysis to evaluate the political, economic, social, technological, legal, and environmental factors affecting the company. The report then assesses L'Oreal's digital presence, exploring the opportunities and challenges it faces in the digital landscape, including customer behavior and the role of influencers. A critical comparison between L'Oreal's digital presence and its physical store presence is also presented, highlighting the differences and costs involved. Finally, the report concludes with methods and plans to evaluate the effectiveness of L'Oreal's digital marketing efforts, aiming to provide insights into how the company can enhance its online strategies and overall brand performance. The report emphasizes the importance of digital marketing channels, customer engagement, and the evolving nature of the beauty and cosmetic industry.

Digital Marketing

Table of Contents

INTRODUCTION
In today's competitive market, digital marketing is commonly used by companies to
capture broad market share. It is a term which is used to promote products and service through
digital technology, which includes internet, smart phones, advertisement through displays.
Digital marketing also known as online marketing or sometimes internet or web marketing. This
present report is based on L’Oreal which was founded by a chemist, Eugene Schueller in the year
1909 (Chaffey and Ellis-Chadwick, 2019). It is a French personal care multinational company,
headquartered in Clichy, Paris. L'oreal is one of the largest leading cosmetic brand across the
world with the Indian market share of approximately 15.8 billion and is continuously increasing.
In this project, understanding of opportunities, challenges and impact of digital environment on
organisation have been discussed.
Along with this, with respect to L’Oreal critical assessment of digital and store presence have
also been included. At last methods and plan to evaluate the effectiveness of digital marketing
of company. At last methods and plan to evaluate the effectiveness of digital marketing of
company.
TASK 1
Environmental analysis of L'Oreal digital presence, opportunities, challenges and impact digital
environment in cosmetic industry.
Digital Marketing is a concept of modern marketing, as here companies promote their
brand and product or services by using digital channels for reaching to end number of
customers. Along with this, there are various form of digital channels such as search engine,
content marketing, websites, social media, mobile app and so on. Their main motive is to acquire
more new customers and provide services to the existing customers. Also it helps in developing a
customer relationship by E-CRM and marketing automation (Chaffey and Patron, 2012). In
context of L'Oreal, they adopt concept of digital marketing for increasing more customers
towards their product or services and also for enhancing their profitability. Now a days, people
used digital environment for identifying internal and external factors of an organisation, which
affect the organisational performance. Along with this, in L'Oreal, environmental analysis is
identified by using PESTLE analysis. As through PESTLE it describes about the different factors
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such as political, economical, social, technological and so on in the context of L'Oreal. This
analysis are described as below:
PESTLE Analysis of L'Oreal-
Political Factors: In this factor includes governmental policies and rules in which
companies have been working. In context of L'Oreal, should to follow governmental rules and
policies of different countries, as they are providing various product and services to their
customers at global level (Chaffey and Smith, 2013). Along with this, L'Oreal manufacturing
company is in Paris so they have to follow the governmental policies of France because it
directly affect a companies growth and image. They transferred an information or messages in all
over the world to their potential customers by using digital channels. Information should be clear
and accurate which create a direct impact on health and safety of individual persons.
Economical Factors: This factor include exchange rate of the operating country. Along
with this, in economic factor recession period plays a very important role, as the price of
products goes down and demand of products goes increases. The price of the product depends on
various factors which includes regions, substitute of the product and many more. In relation to
this, fluctuation in price of product and service creates direct impact on L'Oreal company. As it is
a very important element in the expansion of beauty and cosmetic industries such as L'Oreal.
Social Factors: In this factor various elements are included such as, attitude, belief and
values of every single individuals (Jobber and Ellis-Chadwick, 2012). . In context of L'Oreal, it
is a very important factor as, messages or information which are provided by the mode of digital
channel should be accurate or true. In addition to this, their main motive is do not hurt the
sentiments or emotions of every single individual.
Technological Factors: Now a days, technology plays a crucial role in an organisation.
As technology helps in innovation and searching information regarding anything which enhance
the growth and profitability of a company. In context of L'Oreal, digital marketing helps in
expanding a business at global level which attract more customers towards their brand. Along
with this, L'Oreal focuses on research and innovation to drive competitive advantage in the
market and make a positive image of their brand at global level.
Legal Factors: It is an external factor in which it directly affects the image of operating
businesses and behaviour of customers at market place. In context of L'Oreal, they have to
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maintain a graph of their success, in which they have to fulfil all the legal formalities of the
operating countries. Further with this, it is important for L'Oreal to follow fair packaging and
labelling Act (FPLA) and Federal Food, Drug, and Cosmetic Act (FFDCA) to ensure that no
harmful element have been used in their products which helps to ensure safety among the
customers (Kannan, 2017). As they are opting for innovation in their technology, they need to
take into consideration different laws which are associated with this factor.
Economical Factors: This factor is also known as ecological factors such as variables
regarding the physical environment on earth. Their main motive is to follow global environment
safety laws which makes the planet beautiful and pollution free. In context of L'Oreal, they opt
digital marketing, which means to operate their business activities at global level as, environment
will not be effect. Further with this, L'Oreal bring eco friendlily packaging for their product so,
that environment become more healthier and stronger.
In L’Oreal, it is necessary to follow these factors effectively, for operating their business
activities and strategies at global level in effective manner.
Opportunities in Digital Environment:- L'Oreal is one of the best beauty and cosmetic
company and they have various opportunities for expanding their business at global level. Along
with this, they used digital channel for promotion their brand and product in the market. Like,
they provide information or advertise their product on social networking sites as, it helps in
garbing an attention of consumers.
Challenges faced in Digital Environment: L'Oreal can choose big data solution which will help
them to arrange information regarding their products, services, employees and customers. They
can use various software like Google Cloud Platform, Microsoft big data solution, Oracle big
data solution and so on (Kaufman and Horton, 2014). Their are various challenges which are
faced by L'Oreal in digital environment are given as below:
 Understanding behaviour of digital customers: Now a days, customers are very
used to with digital environment, as they assume companies provides many offers
to them which enhance product or services. This concept motivates L'Oreal to
generate new innovative ideas and approachers for their product or services,
which helps them to fulfil the need and requirement of their customers.
 Finding right team: L'Oreal choose digital marketing for expand their business
at gloat level, as they have to required team right team for providing information
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or messages about their product or services to their potential customers. For
effective team of L'Oreal they have to use modern marketing concept as, it will
helps in to enhance profitability and growth of an organisation.
Impact of Digital Environment: In context of L'Oreal, digital marketing can create a impact on
beauty and cosmetic industry. As it can be described as below:
 New platforms: L'Oreal are using various platform of social media such as Pinterest,
Twitter, Instagram, Facebook and many others for promoting the brand. Along with this,
sometimes it is difficult for their organisation or brand to find out which they should
more focus (Kingsnorth, 2016).. Brand should use these kind of platforms to promote
their product at global level and react to at their target customers.
 Power of Influencer: Now a days, social media can create a impact on customers mind
as they can easily promote their brand or products on it. Also it will helps in providing a
positive outcome which enhance profitability. In context of L'Oreal, they have power to
influence or convince a customers to purchase their product or services by using digital
channel. L'Oreal should to find a good influencer whose words can easily capture by the
heart and mind of audience.
TASK 2
Critical assessment of business of L’Oreal by comparing digital presence to stores presence.
Most of the companies started opting various digital marketing techniques. With the help
of which company have seen growth in their services and brand image. There are various digital
marketing channels which consist of social media, emails, websites, search engine and many
more by which any organisation can connect with their potential and existing customers. Digital
media platform provides customers a medium through which they can openly give their thought
or opinions and share their views about the products and services. Along with this they have the
power to give suggestions related to products and how they can improve their services. Also
consumers can help the company, how they can extend their product line (Kotler, Kartajaya and
Setiawan, 2016). On the other hand, in case of offline services, customers feel to switch to other
brands as they have no medium to express their views and opinions about a particular product. In
the present context, L’Oreal is a cosmetic brand and they need to take advantage of digital
marketing. With the help digital marketing platform, company can understand the point of view
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of consumers in an effective manner. On the other hand, it becomes quite difficult for consumers
to point out others weakness, when it comes to face to face interactions. In digital and traditional
marketing there are various difference. Some of the basic differences are as follows:
Basis Digital Marketing Traditional Marketing
Potential for
growth
There exists several possibility to
an exposure of the digital
marketing. Organisation must
direct communication from smart-
phones and emails which are easily
imponderable by them. With the
help of this technique company can
reach any number of people and
can promote their brand easily
(Miller, 2012). By opting digital
marketing L’Oreal can create brand
awareness and tell them about their
latest services.
Rarely it happens within
marketplace where news spreads
like a fire. If news is concerned with
some negative impact then it can
spread but if it shows any positive
response then it do not. In case of
Digital marketing, it is heard almost
every day.
Efficiency for
development of
brand
Digital market is a channel with the
help of which brand image of a
company can be developed. In
today's competitive world, it is very
important for every business
organisation to be on internet or
have its own website. No matter
whether company provides their
services or products online or not.
With support of the digital
marketing, people can well doing
an analysis of what the firms
mainly offers to them or in reality
In context to digital market,
traditional brand have less ability to
showcase true image of their
recognised brand or offerings to its
buyers (Royle and Laing, 2014).
Traditional business are highly
limited to the common extent or
surface. Also, they have lesser
ability or efficiency to pump money
into the process of marketing or
promotion of the goods or services.
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what customer's is looking to
buyer. People can well led
comparison between given goods
or services given by two business
firms or Co
Cost In context to traditional marketing
methods, cost is quite cheap.
Reason behind this is company
hardly adopt any advertisement
medium like newspaper, magazines
or TV. While using digital
marketing these companies need to
put some extra efforts (Royle and
Laing, 2014). Digital marketing
requires less investment but
provides effective results as
compare to traditional marketing.
In traditional marketing promotion
of a product is performs by using of
the electronic media named as
radio, e-newspaper, television
which are going till now effectively
and properly. It is higher costly as
compared to the digital marketing.
Traditional marketing is demanding
periodical pumping of funds or
money into the process for longer
benefits.
Relieve of
dimension
By using digital marketing method
L’Oreal can easily create its brand
image. L’Oreal has been appeared
on every customer's system, many
times customer click on that
message and check what products
and services they are offering to
them. Also this medium help them
to identify how many times user
visited to their website.
In traditional marketing, it is not
easy for a company to evaluate
marketing performance. Reason
behind this is company is unable to
determine how many people listen
or saw there advertisements on
television, newspaper, radio or
through many other sources. It is
quite difficult for a company like
L’Oreal to calculate such activities
and analyse their actual brand
recognition at market place.
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From the above discussed points, it can be analysed that firm commonly exercise digital
campaign which consider usage of the social media, emails and other websites to promote their
commodities into the profitable manner (Ryan, 2016). In current scenario, it is compulsory for
face decorative industry such as L’Oreal to be progressive on the digital level when company
don't want to sale its commodities through online sources. Company should have attractive
online advertisement so that customers can easily attract towards their brand. Along with this
company have their own websites, with the help of which customers can easily compare and
differentiate what they offer to their customers, which is different from their rivalry firms. If
companies start adopting such mediums, it is quite possible to attract large number of people
within short period of time (Taken Smith, 2012).
TASK 3
Planing for an organisation of digital marketing activities for the L'Oreal
Digital Marketing Plan – The marketing plan of L'Oreal is made in respect of cosmetic products.
By analysing their performance in the last years, they want to integrate the strategy of digital
marketing because this factor has been considered in the present case scenario. Therefore for
this, team of marketing and management of L'Oreal has formulated the plan for preferring
the marketing by digital media. This is done and adopted this strategy to gain more
competitive advantage as their other rivals are also choosing this strategy only.
Business Initiative – L'Oreal has maintain their goodwill in the marketplace from a long period
of time. Therefore, it is crucial to make certain changes in the functionality of their products
which they are carrying out. L'Oreal is using the traditional strategy, but in today time it is
essential for them to use the digital media strategy as this can help them in gaining the
attention of more customers (Chaffey and Smith, 2013). Therefore, it is main reason, L'Oreal
has adopted the strategy of digital marketing.
Situational analysis -
Strength – The main benefit of using the
strategy of digital marketing is the
advancement and enhancement of technology.
This is necessary of the L'Oreal to grow and
enhance their business according to the market
Weaknesses – The major drawback of using
this strategy by L'Oreal is that they require
funds for providing the training sessions of the
strategy adopted by them to their employees, as
in the previous year they were adopting the
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requirement so that they can sustain their
business in the market for long period of time.
Many peoples are fond of the products of
L'Oreal, as their products are easily available
to the customers.
traditional strategy so they will not able to
adopt the digital marketing strategy easily,
about which they don't know have much
information.
Opportunities – By adopting the strategy of
digital marketing, the firm L'Oreal can be able
to gain the attention of more customers as to
represent the product on media and online
marketing as gain the more attention of
peoples. Along with this, the people can also
find the L'Oreal products better by comparing
them with the products of their rivals.
Threats – each company has the major threat
of its competitors. In the similar way, L'Oreal
is also having the threat from the other firm
which is dealing in the same sector and had
adopted the same strategy for the promotion of
products. The main competitors of L'Oreal are
Nivea, Lakme, etc.
 Targeting the market along with the customers - Mainly, the L'Oreal company is
headquartered in France but the firm is rendering their services in all over the world, so
that they can gain the attention of more and more customers. The clients of L'Oreal are
explored in the whole economy (Jobber and Ellis-Chadwick, 2012). The digital
marketing strategy has been adopted by the L'Oreal in order to saves the time as the
traditional strategy which was used by them in previous year was very time consuming
and too costly to afford, along with this, this strategy was not enough to gain the huge
pool of customers. The main reason of using this strategy is that they want people to read
each and every new of the products of L'Oreal, and this can be possible only when this
news is displayed on the digital tools, which mostly peoples used in their daily life. This
is not required by L'Oreal to target their customers as they are already dealing and
running their business in all over the world, so they can target something by modifying
their products and by making their products new (Kannan, 2017).. Generally the targeted
customers of L'Oreal are the teenagers and adults girls and women which are very fond of
cosmetic products. Budget – To adopt the digital marketing strategy, the L'Oreal firm do not need to pay the
higher cost as this strategy is has the moderate price which can be affordable by L'Oreal.
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Also, the budget is to be used in hiring the experts who have adequate knowledge about
the concept of digital marketing. Along with this, they also require budget of around
£30000, for providing the training sessions to their staff members so that they can easily
be able to know about the strategy of digital marketing. Marketing Strategy – L'Oreal is using the market penetration strategy in which the
existing products is to be sold in existing market in order to gain the higher market share,
by this marketing strategy, L'Oreal can be able to gain the attention of large number of
customers from all over the world. The customers are totally provided by the existing and
new luxury cosmetics products by L'Oreal as their demand is the products which suits
them. In this strategy, they will decrease their prices as compare to their rivals and then
also they are gaining more profits. Therefore, this enable them in attracting the huge
number of customers and helps to enhance their market share.
 Marketing channels – L'Oreal is using the different digital media channels like Facebook,
Twitter, Instagram, etc., to develop the effective relationship with their potential
customers. Social media is one of the most important source of digital marketing, by
which L'Oreal can upload the details about their products on their websites and on other
different media channels so that more and more customers can see that and get attract
towards their products. Along with this, they can also get the reviews of their customers
about their products, and they will get to know on which product they have to improve
more.
TASK 4
Main methods of an evaluation and observation of an effectiveness of digitalisation
To evaluate, touchstone and supervising an effectiveness of the digital selling, in
response there are several methods exists. In context to L’Oreal in terms of luxury and active
cosmetics division, there are some methods which are as follows:
Evaluation of effectiveness of digital marketing: There are various strategies which have been
developed by L’Oreal for smooth running of their operating activities. It is very important for
every company to evaluate its strategies on a regular period of time. In context to cosmetic
industry, it can be carried out in several ways:
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 Identification of the goals and objectives of L’Oreal’s digital marketing: It is one of the
foremost stages for venture or firm. Initial stances of a venture interest is to determine
goals with the purpose of which different strategies are being developed. L’Oreal consits
of the digital campaign objectives are:
 Number of consumers who are following L’Oreal on different social networking
websites.
 Number of positive as well as negative reviews of customers, which are left on
L’Oreal websites.
If goals or aim of the company is already set, then it is very important to analyse whether they
are able to achieve those targets or they need to modify their strategies (Tapp, A., 2014). With
respect to L’Oreal's both active and luxury products, managers needs to identify weather existing
strategies help them in accomplishing their present goals. If it is required, then company modify
their strategies in order to achieve their new objectives. Re-examine profile of target customers: It is necessary for an institution to carry digital
movement, to measure their own buyers. Company need to analyse different types of the
people would reach to the L’Oreal for offerings both the active and luxury products. In
case, L’Oreal would targets young women to the Facebook but they discovers that
maximum likes are from middle aged women (Thomas, 2014). In such case company
must re-examine there elements. Take into consideration digital presence: It is essential for L’Oreal at the time of re-
evaluating their customers, whether they are using appropriate digital medium or not.
For example, L’Oreal target women between the age of 18 to 30 years for their active
products. It is very important for the company to be active on social networking sites
which is mostly used by every person.
 Evaluation of messaging strategies: To release digital campaigns L’Oreal requires to
take into consideration to messages they have sent to there customers. These messages
are planned to find out:
 To analyse that how effectively marketing materials of L’Oreal is being shared
among audiences.
 Along with this, it has to evaluate what kind of messages or advertisement attract
customers. It includes blog post, text messages, videos and so on.
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 Check digital marketing ROI: Last and final step is to evaluate the overall performance
of digital marketing in terms of return of interest (ROI). For this two elements must be
analysed.
 Total amount of investment by L’Oreal in terms of time and funds in their digital
campaign.
 Financial benefits of conversions.
Monitoring effectiveness of Digital Marketing: For monitoring performance in reference to
digital marketing there are various ways used by L’Oreal (Yasmin, Tasneem and Fatema, 2015).
Some of these measures are as follows: Is L’Oreal able to engage their customers: Marketing deals with active participation
with customers along with maintaining healthy relationship with them. This can be
achieved with the help of social media platform by providing them sufficient knowledge
and awareness about products and services.
 Are you providing value to conversation: Marketing manager create some content or
catchy tag lines with the help of which they can attract more and more customers. These
tag lines must be in decent form, so that they can easily influence with the brand. It is
necessary for L’Oreal to bring values, with the help of regular engagement with their
customers (Chaffey and Ellis-Chadwick, 2019).
Measuring effectiveness of Digital Marketing: For the L'Oreal, effectualness of the internet
marketing will be measure with the helps of the several ways are as follows:
 Total visits on site: In context of L'Oreal, this concept helps in getting a rough idea
about the drive traffic. In addition with this, it says that if number of visitors on site goes
decline then they have to find out the solution of their problem and also their is need of
improvement in their strategies.
 Traffic by channels: For the L'Oreal, given segment is linked to an single person who is
doing an actual marketing events. In this, different channels of the market campaign is as
follows:
a) Direct visitors: They are those persons who already knows or aware about L'Oreal and their
product or services. They reach site by typing URL into web browser and get all information
about it (Taken Smith, K., 2012).
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b) Search: They are those individuals who have some queries regarding their brand or services
and they sent their queries by browser.
c) Referrals: They are those individuals who are searching different product on different sites
but by clicking on some other link they also get products of L'Oreal entered into other websites.
Bounce rate: It means there are many people who are visiting on site but if they are going
return without getting any meaningful action (Chaffey and Patron, 2012). Along with this, if
bounce rate goes high then it means there is a large number of fluctuations in digital marketing
because of irrelevant traffic source, poor campaigns, weak landing pages and so on.
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CONCLUSION
After discussion of an above assessment, it is ended that for heighten the work of a company
process of the digital promotion led out the major critical role. With support of the digital
firm can gain more customers, which rises profitability and growth of the company. In
given assessment, Pestle technique of the L’Oreal have analysed along with SWOT to
develops critical strength, weakness, opportunities and threats of the firm. Comparison
between traditional and digital marketing, to evaluate scope of growth with digital
marketing is also discussed in this report. Also, evaluation, monitoring and measuring
effectiveness of digital marketing has been analysed. Moreover, marketing plan in
reference to luxury and active cosmetic products are also analysed.
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REFERENCES
Books & Journals
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