Digital Marketing Report: Analysis of L'Oreal's Strategies

This report provides a comprehensive analysis of L'Oreal's digital marketing strategies. It begins with an introduction to digital marketing and its significance, followed by an environmental analysis of L'Oreal using the PESTLE framework. The report then critically assesses L'Oreal's business, comparing digital and traditional marketing approaches. It explores the opportunities and challenges within the digital environment, including the impact of influencers and the use of various digital platforms. The report details digital marketing activities supporting L'Oreal's initiatives, and concludes with key methods for monitoring, evaluating, and measuring the effectiveness of digital marketing efforts. The report highlights the importance of understanding consumer behavior and adapting strategies to maximize brand awareness and profitability in the competitive cosmetic industry.

Digital Marketing

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Environmental analysis of L'Oreal.........................................................................................3
TASK 2............................................................................................................................................6
Critical assessment of business of L’Oreal............................................................................6
TASK 3............................................................................................................................................9
Digital marketing activities for supporting initiatives of L'Oreal..........................................9
TASK 4..........................................................................................................................................11
Key methods for monitoring, evaluation and measuring the effectiveness of digital marketing.
..............................................................................................................................................11
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Digital marketing can be defined as the concept of merchandising products and services
in competitive marketplace. Nowadays, campaigns for digital marketing are more prevalent and
efficient because online shopping is more as compared to visiting physical shops (Baker and
Hart, 2016). It is concerned with promotion of services & products through digital technology
with the help of advertisement through displays, internet and smartphones. Their are various
methods for digital marketing such as search engine marketing(SEM), search engine
optimization, marketing (social media), e-commerce marketing, e-books, content marketing and
many more. Firm, which has been chosen under present report i.e. L'Oreal. It is world's largest
cosmetic industry found in the year of 1909 by Eugene Schueller. Its products offerings
concentrates on sun protection, hair colour, skin care, make-up, perfume and many more other
products. The company headquarters are based at Clichy and it is serving customers all over the
world. In the report it has been discussed about the challenges, opportunities and impact of
digital environment. Along with this, critical assessment of digital & physical stores existence
for L'Oreal has been done. Lastly, it has been discussed about plans and the methods for
evaluating digital marketing's effectiveness in the context of L'Oreal.
TASK 1
Environmental analysis of L'Oreal
Digital Marketing refers to the modern concept of marketing where company promote
different range of services along with the products, by using digital platform in order to attract
and influence more and more customers. In addition to this, various marketing channels are used
by different companies which includes social media, websites, search engine, mobile apps and
many more (Berman, 2016). Main motive behind adopting digital marketing is to attract and
influence more and more consumers as well as provide best services to their existing customers.
In present context to L'Oreal, company adopt the latest concept of digital marketing in order to
increase their profitability by attracting more customers towards their brand. In today's
competitive world, companies adopt digital technologies for identifying internal as well as
external factors of a company, which affect the overall performance of an organisation. In
reference to L'Oreal, by using PESTLE company examine their environment which affects the

working of the company. It describe about the political, social, environmental and many other
factors which influence L'Oreal. They are discussed as below:
PESTLE Analysis:
Political factors: Companies like L’Oreal basically offers products and services across
the world, so it is required by them to follow all those regulations or the rules developed by
governmental agencies of different countries. In addition to this, it is also necessary for the
company to spread accurate and relevant information to their customers. Manufacturing
company of L’Oreal is in Paris so company should abide to follow rules and regulations
formulated by government of France, as it directly affects the growth and image of the company.
Economical Factors: In present component, operating countries exchange rate as well as
employment rate is included (Castaño and Jurado, 2016). In addition to this, recession period
plays very important role in the overall development of the economy of a country, as demand of
a product increases and on the other hand product price goes down. Various factors affect the
price of a product which consist of religion, substitutes available of a product and so on. In
reference to L'Oreal, fluctuation in the price of a particular product, affects the overall
profitability and growth of the company. For companies like L'Oreal, price plays very important
role while expansion of such companies.
Social Factors: Beliefs, attitude, values are included in this factor. In reference to
L'Oreal, Social factor plays very important role. As it is necessary for the company to provide
accurate and relevant information to their customers, by adopting digital platform of marketing.
Along with this, their main motive is to secure the sentiments and trust of individuals.
Technological Factors: In today's competitive world, technology plays very important
role for maintaining the growth at marketplace. Upgraded and latest technology helps in
innovating and creating new and attractive products which as a result enhance the profitability
and goodwill of the company. With the help of digital marketing, L'Oreal expand its business at
international level and attract more and more customers. In addition to this, for gaining
competitive advantage L'Oreal mainly focus on innovating and creating new products. As a
result company can make positive brand image at international level.
Legal Factors: Under this factor, there are some legal formalities which has to follow by
each and every company. In addition to this, it is important for L'Oreal to follow Federal Food,
Drug, and Cosmetic Act (FFDCA) and Fair Packaging And Labelling Act (FPLA), in order to

ensure that no harmful element is used by company while manufacturing its products (de Vicuña
Ancín, 2018).
Economical Factors: Main motive behind adopting this factor is to make planet clean
and pollution free. In reference to L'Oreal, company adopt digital marketing technique in order to
operate their activities at international level. As a result environment of the operating country
would not be affected by this. In addition to this, L'Oreal use eco friendlily packaging in order to
maintain environment safe and healthier.
As a result, it is necessary for L’Oreal to follow all these elements in an effective manner,
while operating their business at international level. By keeping these factors in mind, company
can gain competitive advantages and maintain their brand image.
 Opportunities in Digital Environment:- In today's world, L'Oreal is one of the biggest
beauty and cosmetic company. While expanding their business at international level
company is having various opportunities. In addition to this, company use digital
marketing platform for promoting their products and attracting more and more customers.
As company provide various information related to their products also they promote
products on social media, as a result company grab attention of large number of
customers from all over the world.
 Challenges faced in Digital Environment: In context to L'Oreal, company choose big
data solution, which aid them while collecting informations regarding their services,
products, customers and employees. Company can adopt various software's in order to
arranging informations such as Microsoft big data solution, Google Cloud Platform and
many more. L'Oreal faced various challenges which are as follows:
▪ Finding right team: When L'Oreal adopt digital marketing alteration, company
need experts (Deiss and Henneberry, 2017). These alterations are adopting of
artificial intelligence, IOT and many other technologies. L’Oreal is using
traditional marketing and with respect to digital transformation company do not
have enough knowledge. Company require right team as they have to provide
accurate information to their customers about their products and services by using
digital technology.
▪ Understanding behaviour of digital customers: In today's world, customers
highly recommend social networking sites, as they have a perception that

company provide various offers regarding their products. In order to fulfil
customers needs and requirements, company get influenced and motivated to
produce new and innovative ideas.
 Impact of Digital Environment: Digital marketing creates very positive impact on a
cosmetic industry. In reference to L'Oreal, various elements affects the overall market
share of the company. Some of them are as follows:
 Power of Influencer: In today's competitive environment, social media is a platform
which helps the company to easily promote their products on it. As a result, company
increase their brand image and gain high profit as compared to their rivalry companies. In
the present context of L'Oreal, by using digital channel, company easily influence their
customers in order to purchase their products. It is necessary for L'Oreal to find a good
influencer with the help of which company can grab attention of their customers.
 New platforms: Currently L'Oreal is using various digital platforms for promoting their
products (Fierro, Cardona Arbelaez and Gavilanez, 2017). These platforms includes
Twitter, Facebook, Instagram and many more. In addition to this, sometimes it is quite
difficult for the company to find out which platform should they focus more for attracting
customers. L'Oreal use such platforms in order to promote their products at international
level and attract more and more customers.
TASK 2
Critical assessment of business of L’Oreal.
The companies have now started opting for techniques of digital marketing as this further
helps in profit maximisation, survival and sustainable growth for its product and services offered
at marketplace. The different types of channels of digital marketing assist organisations to
connect with potential and existing customers. The types consist of social media, websites,
email, search engine and many more (Ghotbifar, Marjani and Ramazani, 2017). Digital media
provides customers with the platform to share their ideas, opinions and thoughts about the
products and services. This further helps the organisation to get suggestions from the customers
related to improvement in their products and services. Also, consumers helps the business
organisation the way to extend their product line. Whereas, in the case of offline
marketing ,customers frequently switch their brands as they don't find any way to express their

views and thoughts about the specific product or service. In the present context, L’Oreal is he
best cosmetic brand so, the company is required to take advantage of digital marketing. With the
application of concept of digital media, it will help to know about the viewpoints of consumers
in effective and efficient manner. On the other hand it is quiet difficult for the company to know
about the drawbacks related to products when it is concerned with face to face interactions.
There are various differences between digital and traditional marketing which are discussed
below:-
Basis Digital Marketing Traditional Marketing
Potential for
growth
Expectation is there for exposure of
business organisations within
digital marketing. It is being found
that an organisation can share
information with the helps of
sending informations with the help
of emails or mobile phones. Here, it
can easily be said that, it will be
easily assessable by customer's and
employees (Hastings and Stead,
2017). This technique will help
company to reach wide area of
customer's and brand's promotion
can be done easily. Through
preferring digitalised marketing an
organisation like L’Oreal may
easily create or increase the level of
brand consciousness. An effective
promotion done on social media
provides proper detail to the
targeted customers.
In this there is low degree of growth
potential in traditional marketing.
As it is more localised and possess
limited scope for reaching
audiences. Also, the advertisements
use are not so interactive and
attractive.
Efficiency for
development of
Digital market is platform which
helps in development of brand of
In present context, it can be said that
traditional marketing done by an

brand the business organisation with
efficiency. In today's competitive
scenario, it is very essential for
every business organisation to
develop its own websites and utilise
the internet facilities. It not
necessary for company to sell its
products and services online.
Through this, potential customers
consist with the knowledge related
to company's products and services.
It can be said that, a customer can
compare among services and
products given by rival business
organisation. This helps L'Oreal to
effectively develops its brand at the
marketplace (Key and Czaplewski,
2017).
organisation do not impacts heavily
which means, the strategy would
grab a specific area only. It is being
found that, traditional marketing aid
in enhancing brand recognition.
Mostly, the channels would stay
from television, radio, or newspaper
advertisement. But the cost for
development of brand is more as
compared to digital marketing.
Cost If it is talked about, digital
marketing methods, cost is not very
high. Vital reason here is that
organisations emphasis on
influencing and persuading
consumers towards services and
products (goods) using various
channels of digital media. Digital
marketing which organisations
requires to implement some of extra
efforts. The cost for carrying out
activities at digital platform for
L'Oreal is low cost.
Promoting products and services
considering traditional marketing
approach stays really very costly.
This is done through various
channels like Television,
newspapers, pamphlets and more. It
is being found that cost which is
being implemented for traditional
marketing stays high if it is
compared with digital marketing.
Therefore, it can be said that it is
crucial for a business organisation
like L'Oreal to manage the budget of

marketing.
Real Time
Result
With the help of digital marketing
the company get real and unbiased
results. This assist L'Oreal to
identify and analyse the needs of
customers on time.
Traditional marketing don't
provide managers with real time
results. As it is difficult to prepare
the data analytics.
Investment In the concept of digital marketing
there is little or no investment
required to reach consumers.
For carrying out activities in
traditional marketing organisations
require huge investment for
achieving the desired impressions
(Lobato, 2016).
From the above points of difference, it has been analysed that companies or
organisations usually use tools of digital marketing which includes use of social media, emails
and website for promoting their products and services in effective mode. In present scenario, it
is mandatory for cosmetic industry like L’Oreal to take active participation on digital platform
even though company do not want to sell their products online. Company must have enthralling
online advertisement so that customers are easily attracted towards the products and services
offered. Along with this company must develop their own websites, which will lead customers
to make comparisons and differentiation from the rivalry firms for the products being offered.
Moreover if this concept is adopted by companies it will help to attract ample number of
customers and retain customers within short span of time.
TASK 3
Digital marketing activities for supporting initiatives of L'Oreal
Digital Marketing plan:
In respect to luxury and active cosmetic products, L’Oreal made a digital marketing plan.
By examining past performance of L’Oreal, company wants to incorporate digital marketing in
their strategies as this factor is considered in the present scenario (Manser Payne, Peltier and
Barger, 2017). For this, marketing team along with management of the company, has to

formulate plans in order to obtain digital media for marketing process. In order to gain
competitive advantage within marketplace, company adopt digital marketing strategies.
Business initiative
In today's competitive world, L’Oreal maintain their brand position within market place
with passage of time. It is necessary for the company to adopt certain changes in their operating
activities. Company uses traditional marketing policies, but in the current scenario, it is essential
to adopt digital technologies in order to maintain growth and brand image. With the help of
which company can influence and attract more and more customers. This is the main reason
L’Oreal adopted digital marketing techniques.
Situational analysis
Strength Weakness
By adopting the strategy of digital marketing,
company can enhance and improve their
technologies. It is necessary for the company,
to adopt digital marketing in order to maintain
sustainability for longer period of time.
Majority of people is fond of L'Oreal, as it is
easily available every where in the world.
One of the greatest drawback of this strategy is
that management team of L'Oreal require more
funds in order to give training sessions to their
employees (Nudurupati, Tebboune and
Hardman, 2016). It is not easy for every
individual to adopt digital marketing strategy
as they were using traditional method before.
Opportunity Threat
By adopting this strategy, L'Oreal attract more
and more customers. By promoting products
on social media company improve their
profitability along with its market share. In
addition to this, customer find products of
L'Oreal better them other rivalry companies.
Every company has threat of competitors. In
the present context, L'Oreal also having threat
from other competitor firms, adopting same
marketing strategies within the same industry.
Major rival companies of L'Oreal are Lakme,
Nivea and many more.
Target market and consumers:
L’Oreal headquarter is situated in France but on the other hand company provide its
products and services all over the world from past many year. Company adopt digital marketing
as traditional method is very expensive as well as time consuming. Along with this, traditional

method fail to attract large number of customers across the world (Parekh, Kapupara and Shah,
2016). This is because, in today's world, people hardly influence by any traditional method of
marketing. This as a result reduce profitability, market share as well as consumer base. By
adopting digital marketing strategy, company attract more and more customers and provide
every required information regarding their products to them. L’Oreal basically target teenagers
and adult girls as they are the people who can easily influence by latest products.
Budget
In order to carry out digital marketing techniques, company do not require huge amount
of funds. Company can easily adopt this techniques as it require nominal amount of funds.
Management team should hire experts who have good knowledge about digital marketing
strategies(Ryan, 2016). Furthermore, it is compulsory for the company to provide training
session to their employees who are the part of marketing team. For such process company need
approximately £25000.
Market Strategy
For attracting large number of customers across the world, L’Oreal use penetrative
technique of pricing. This pricing technique is implemented on both active and luxury cosmetics
product. In this strategy, L’Oreal set lower prices as compared to their rival companies, but on
the other hand company gain more profit margin and maintain brand position at the competitive
marketplace. As a result company attract more customers and maintain high profitability at
market place (Parlov, Perkov and Sičaja, 2016).
Marketing Channels
L’Oreal is using digital platforms, celebrity endorsements and social media for promoting
their products. Digital media consist of Facebook, Twitter, Instagram and many more in order to
establish impactful relationship with their customers. On various social media and on their own
websites L’Oreal upload required information which is important for their customers. With the
help of which company will be able to achieve various information regarding perspectives of
their customers, what modification is required in their product and many many.

TASK 4
Key methods for monitoring, evaluation and measuring the effectiveness of digital marketing.
It is being found that, in order to analyse the effectiveness of digital marketing, a range of
methods are present in the market which are linked with measuring, evaluating or monitoring. If
it is talked about L’Oreal considering the segments that are linked with active and luxury
cosmetics business sector the different methods are described below:-
Evaluation of effectiveness of digital marketing: It is being found that there are a range
of that are basically L’Oreal in order to conduct business in a rightful manner. It can be said that
there are some of important points for business organisations in order to analyse the strategies
from time to time (Paul and et. al., 2018). if it is talked about cosmetic industry, it can easily be
done by various ways:-
 Identify goals and objectives of L'Oreal digital marketing:
 To find out the number of customers using the products of L'Oreal on various
social networking websites.
 To know about the reviews of customers whether positive or negative which are
shown on websites of L'Oreal.
It is very essential to analyse that targets of company have been achieved effectively or any
changes are required in the strategies. As, L'Oreal is offering both luxury and active products,
than managers are required to determine that already formulated strategies will assist in
accomplishing existing goals of company. If its required than company can make modifications
in the strategies for achieving their goals and objectives.
 Re-examine profile of target customers: Before carrying out the activities of digital
campaign it is very important for every company to evaluate their target customer's. The
managers of L'Oreal will conduct proper analyse regarding what type of customer's are
required to be acquired by L'Oreal for both active and luxury products. For example,
L'Oreal is targeting young ladies for its products on social media but maximum reviews
are from old or middle aged women than , in this case the managers are required to re-
evaluate their segmentation and goals.
 Take into consideration digital presence: the managers of L’Oreal must be aware
about the fact that how many customer's are using the digital media in appropriate
number. Here the example can be taken that the managers of L’Oreal are targeting the