Digital Marketing Plan: L'Oreal's Strategies and Analysis

This report provides a comprehensive analysis of L'Oreal's digital marketing plan. It begins with an introduction outlining the importance of digital marketing and its impact on L'Oreal, a leading French cosmetics company. The main body of the report explores the environmental factors, both macro (P...Read More

Digital Marketing Plan

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
TASK 1............................................................................................................................................1
Impact of environmental factors on LO'reals digital presence within the organization.............1
TASK 2............................................................................................................................................4
Critically assessment of LO'real for the assessment and comparison of its store presence and
digital presence............................................................................................................................4
TASK 3............................................................................................................................................6
Plan for digital marketing helping in improving the multi channel capabilities of the
organization in various divisions:...............................................................................................6
TASK 4............................................................................................................................................9
Key factors for evaluating, monitoring and measuring a digital marketing plan........................9
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
The digitalisation operations that are been undertaken within an organisation will impact the
operations. It helps in evaluating the digital promotional operations followed by the firm and
thus will lead to carrying out of suitable assessment of operations carried out by the firm. The
internet based promotions are faster, convenient and helps the organisation to reach larger
audience that supports a good accessibility of operations and thus, supports a good rise in
capabilities of the firm. The current report is based on the digital promotional measures that are
been undertaken by LO'real. It is a French enterprise that deals in skin and personal care
products.
The report will emphasis the environmental factors that can affect the digital marketing
operations that are been carried out by the organisation. Besides this a suitable comparison will
be carried out that will evaluate the digital and physical store based presence of the organisation.
The marketing plan to organise the multi channel capabilities of the firm. Besides this, the key
methods of evaluation, monitoring and measuring effectiveness of digital operations are been
carried out.
MAIN BODY
TASK 1
Impact of environmental factors on LO'reals digital presence within the organization
The online promotional measures that are been carried our by the organization are
effectively affected by environmental factors which will impact the performance of selected skin
care firm. Internal and external environmental factors will be carried out by the firm that will
helps in proper planning of business operations it includes micro and macro environmental
factors such as:
Macro Environmental factors affecting the digital presence of the organisation
PESTEL analysis of L'oreal
L'oreal is one of the top brands in beauty and cosmetic products. Every company has its
own business objectives but there are some factors which influences and helps in achieving
business objectives which are analysed with the help of Pestle analysis. Pestle stands for
political, economic, social, technological, legal and environment. L'oreal looks for expansion of
company by implementing and promoting through digital marketing.
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Political factors- This factor is consists of rules and regulation which are made by nation
government. Every nation has its own government and they make their own policies which need
to be followed by every organisation. For example to promote products through digital
marketing, it is a big challenging task for L'oreal to promote products in China because social
sites like Facebook is banned in China due to which digital marketing becomes hard for L'oreal
to expand its market (Hamill, 2016.).
Economic factors- This factor consists of economic situations based on inflation rate,
growth rate, interest rate, investment rate. Those countries who has low currency rate are
beneficial for L'oreal to invest in manufacturing process there because labour cost is too less. It
directly increases market share of company and leads to better growth. Digital marketing saves
promotion cost as it do not include any advertisement cost to pay to government or any other. It
is free of cost to promote products on social sites.
Social factors- This factor helps the company to give information about public interest,
demands, expectations and their needs. With the help of digital marketing, L'oreal gets to know
directly about public interest, quality of existing products, new demands and expectation and
what is lacking in society. On social sites like Facebook, public can directly comment on
products launched by L'oreal so that it can take care of those complains, ideas and information
and bring changes by implementing them in launching new product.
Technological factors- This factor is to analyse the latest scientific researches and
implement them in processing and procedures of manufacturing products so that qualitative
product is produced and in same proportion. While promoting products through digital
marketing, L'oreal can also show to customers about their new techniques involved in
manufacturing process which helps to gain trust of customers. It makes the products trusted
based on current trend and add additional factor to success of company.
Legal factors- To maintain sustainable growth of organisation it is mandatory to follow
legal rules made by government. Legal laws are like equality act, health and safety law, non-
discrimination law, Data protection law, etc. through digital marketing, it is advantageous for
L'oreal to share that data only which is necessary for consumers. By following data protection
law, employees in L'oreal are strictly prohibited to leak information. But digital marketing can be
both positive and negative impact for L'oreal because anyone can leak information worldwide on
social sites.
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Environmental factors- This factor lead to global environment changes which are
naturally occurred. But nowadays man made environment changes are increasing highly like
ozone depletion. L'oreal step of promoting products through digital marketing does not impact
on Balog environment because this is environment friendly and pollution free. It doesn't need
any papers which reduces deforestation and promotes afforestation. This step lead L'oreal to
stability and sustainable growth for future purpose.
Micro Environmental factors affecting digital presence of the organisation
The micro environmental factors of the organisation will look after the internal factors that
impacts the performance of the organisation in a significant manner. This will help in performing
the good growth of the organisation and support effective placing of the elements that can
influence a company's performance to a greater level (de Vicuña Ancín, 2018). This will include
the following factors:
Suppliers: The suppliers will look after the distribution or providing the suitable raw material
that will impact the performance of organisation. This will also help in carrying out of services
and thus, will lead to improve the operations which will help in improving the performance of
organisation. The organisation can use digital tools and technologies which will help in
developing good connectivity with their suppliers.
Competitors: Using the proper innovation and other marketing tools will help in proper
planning of the utilisation of digital technologies which will support organisation to have a
significant growth and developing measures that will help in proper rise in usage of digital
technologies by LO'real.
Customers: Change in the product of service needs and developing proper innovation will help
the organisation to enhance the products and services which will help in carrying out services
that will help in developing a good digital technology that will help in executing operations and
product development of organisation (Chaffey and Smith, 2017).
Employees: Proper CSR operations will be carried out by the organisation that will help in
suitable rise in planning need and demand measures which will help in carrying out the
operations and qualities on an effective way. Besides this, the employees will use innovative and
advance digital measures which will help in carrying out of its marketing operations and other
measures effectively.
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Investors: They will provide effective monetary helps in order to carry out the digital
promotional activities that will help in proper assessment of the measures which will help in
proper planning of the measures which will help in proper assessment of digital tools and
technologies that will help in carrying out of the online promotion of the firm.
Regulatory bodies: These are the effective bodies that will helps in impacting the sales of the
organisation in an effective and significant manner. Other than this, they will monitor the
standards and content that is been used online to promote foods or services.
TASK 2
Critically assessment of LO'real for the assessment and comparison of its store presence and
digital presence
LO'real own a vast range of products like Maybelline, The body shop and Garnier that
has been a key role player in improving its product portfolio. In order to reach out to its
customers, the organisation adopts two major promotional approaches: online and store based
presence. As per an estimate, the online and digital marketing operations provides a revenue of
$2.6 billion for LO'real. The promotional measures that are been carried out by the organization
will help in proper assessment of the operations carried out by an organization (Kotler and et.al.,
2015). On the other hand, the store based promotions and selling is helping the firm to earn a
profit of about $3.1 billion. However, there are been difference in the online and store based
marketing and sales. Some major differences are:
Online presence Store based presence
It is accessible from around the globe, all the
time.
It is present on local level, for a limited time
frame.
It doesn't provide the physical experience of
goods and services to a buyer.
As it is tangible in nature, customer can see,
touch and feel the product.
It is a cost effective and convenient method of
selling products by a enterprise like LO'real.
This is also an easy method but is based on
brand equity and supply chain of the product at
a store or country.
Form the store based presence the organization either sets its own outlet within an
country or location or collaborate with other retailers to provide or deliver their products and
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services. The major advantage of store based presence is that it will help in improving these
scope of accessibility of the organization and thus will lead to setting up of promotional
measures which are been carried out by the organization. However, setting up of a proper store
of brand outlet requires extensive market analysis and evaluation (De Pelsmacker, Van Tilburg
and Holthof, 2018). For a firm like LO'real, with high brand recognition and equity, this is an
easy and hassle free approach. Setting a store and promoting the products or services in certain
cultures may turn out to be an effective challenge for the organization. In such conditions,
effective brand reputation may be affected, leading to decrease in the sales and profitability of
the organization.
On the other hand, the online or e commerce based selling will impact the performance of
the operations leading to setting up of effective market plan for the organization. The
collaboration with e commerce and fashion sites will help in increasing the reach of different
customers towards the organization (Kotler and Armstrong, 2015). As the online measures are
not limited to nationalities, LO'real will look after the proper assessment of the operations and
measures which will help in carrying out the operations and meeting the operational needs of the
organization on a significant level. It will assist in improving the overall performance and
productivity of the organization. Besides this, the social media platforms are been applied within
the organization that will help in carrying out the promotional and revenue generation of the
firm.
As we can see that the proper implementation of store based presence is more beneficial
for the organisation as compared to online presence, LO'real can opt for improving the number
of its store based accessibility within market. In the current scenario, LO'real has more strong
store based presence rather than the digital presence. Hence, the tie ups with various digital sites,
e commerce platforms and personal website of the company will help in carrying a good
accessibility and carrying out of marketing and promotional measures in an effective way. The
following of these measures will also help in carrying out the operations and thus will lead to
improve the maketing or promotional measures and sales of the products or services of an
organisation in an effective way, which will help in carrying out of promotional operations
carried out by an organization (L'Oreal Is Benefitting From A Higher Digital Spending, 2017).
This measure will help in meeting the operational needs of the organization and thus, will lead
the selected enterprise to enhance the quality of services and that are been offered by LO'real.
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The proper planning of the operations will look after the proper planning of the operations that
will help in carrying out of the marketing operations with efficiency (Ryan, 2016).
TASK 3
Plan for digital marketing helping in improving the multi channel capabilities of the organization
in various divisions:
The effective planning of the digital marketing approaches and multi channel approaches will
lead the organization which will help in proper assessment of the promotional measures of the
organization. This will help in proper assessment of the operations in an effective way. The plan
will include the following aspects and operational measures which will help in improving the
performance of the organization in a significant manner. The effective marketing plan that will
be covered by the organization will be:
Situational analysis:
This will include the SWOT analysis of organization and thus will lead to proper rise in
the carrying out of the business operations of the organization (Chaffey and Ellis-Chadwick,
2019). The SWOT of LO'real includes:
Strength:
 Continuous Innovation and research: LO'real looks after the suitable innovation with
research and development processes of the operations and factors that helps the business
enterprise to develop high quality, new and unique products like natural or organic
cosmetics. Suitable pharmaceutical and dermatological products are developed and tested
that helps in handling the suitable connectivity of the organization in an effective way.
 High end advertising on the offline and online level: Effective promotion measures are
carried out by the organization that helps in planning of the marketing measures and
meeting the operational needs of their buyers (Armstrong and et.al., 2015). Use of
traditional as well as the digital and advance marketing measures helps in proper rise in
the operation and thus, helps in proper and effective development of a new product.
Weaknesses:
 Decentralized organization structure: The LO'real don't have a centralized and
systematic organizational system that restricts organization to have a high level of
performance and communication. Hence, the presence of multiple subdivision and
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sections may lead to communication gap between various departments. This makes it
difficult to carry out proper communication to control the digital marketing operations.
Opportunities:
 Developing anti aging and high end cosmetics: LO'real will look after proper
development and promoting of anti aging creams and lotions that will help in carrying out
suitable customer base of the organization. Besides this, the promotions of the products
and services can be carried out and placed within the developing countries which will
help in proper assessment of the operations (Kingsnorth, 2016).
 Increasing the market share: As LO'real own multiple brands under its name, this will
help in improving the sales of the organization and thus, will lead to increase in
promotional operations of the firm.
Threats:
 Rise in Competition: Brands like Revlon and Lakme are the major competitor's of
LO'real that will impact carrying out the marketing operations of the firm. It can impact
the marketing measures of the organization.
Digital management goals: It includes the SMART objective for the organization. It is as
follows:
Luxury cosmetics division:
Specific: For the Luxury cosmetic division, the specific goal will be the promotion of
high end, superior quality and desirable product that helps in meeting the needs of their high
class customers.
Measurable: This will include the goal commitment for promoting luxurious natural
products or cosmetics for their customers.
Attainable: The goals is required to be attainable or feasible for the firm. It will include
the proper planning of the product development process and carrying out of the resource and
fund allocation measures which will help in promoting high end product.
Realistic: The suitable availability of effective raw material and promotional facilities
will help in proper marketing of luxurious cosmetics. The reputation of the firm to provide
innovative product will have a major role in it (Casagrande, 2018).
Time bound: A deadline will be set and the product will be developed by LO'real in that
time frame helping in promoting high end products.
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Active cosmetic division:
Specific: This will help in promotion of their natural and organic products or services
that will help in carrying out of services.
Measurable: As the active cosmetics are been in production, the production quality can
be calculated and controlled by them within organisation.
Attainable: LO'real have a good supplier connectivity and access to raw material that
will help in promoting the organic active cosmetics.
Realistic: As LO'real is known to develop unique products, promotion of organic and
natural cosmetics is possible for the firm.
Time bound: The needs of organic product is growing rapidly around the globe, LO'real
is required to develop these products asap (Haughey, 2019).
Management strategy
Luxury cosmetics division:
Segmentation: This will cover the upper class customers who are very conscience for
their skin and personal care.
Targeting: The firm will target rich women of age group 18-35 years of age with the
demand of high end luxurious and natural cosmetics.
Positioning: Luxurious cosmetics will be promoted using magazines and print media,
also with TV commercials.
Active cosmetic division:
Segmentation: This will help in proper promoting the products and services for the
buyer in developing countries (šoraitė, 2017).
Targeting: This will include the skin and personal care conscience customer of middle
class in developing countries.
Positioning: They can apply the approach to launch affordable organic products that will
help in proper promotion of products by LO'real.
Digital marketing strategies:
LO'real can opt for the effective use of social media tools and platforms, digital
marketing mediums as well as the approaches like celebrity endorsement in order to promote the
High end as well as active cosmetics products for their customers.
Measuring results:
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The results can be measured using different statical data, KPI's like increase in sales and
revenue. Besides this, the rise in customer satisfaction level and market share of the company
within a country or market will be a medium can be used. Online traffic and clicking rate of
users will be used to measure digital presence (Khan and Murshed,, 2016).
TASK 4
Key factors for evaluating, monitoring and measuring a digital marketing plan.
A digital marketing plan is made for L'oreal to enhance marketing network for luxury
cosmetics products and active cosmetic products. Digital marketing plan helps L'oreal to increase
its market share and productivity for lifelong purpose. It gives a beat to other competitive brands
and have competitive advantage. But some key factors are needed to evaluate, monitor and
measure digital marketing plan effectiveness which are explained below:
Factors for evaluating digital marketing plan effectiveness
 Examine audience- After planning a digital marketing plan, it is necessary for
organisation to examine audience means to take feedback from customers about products
and promotion process (Kotler, Kartajaya and Setiawan, 2016). It gives information to
L'oreal regarding new digital marketing plan that how much this is effective or not. It is
very important to analyse market segments so that new opportunities can be seek later. It
helps to analyse the return on investment money.
 Analyse digital presence- This factor gives information regrading those employees who
are not connected on social sites. If people are not able to see promotion through social
sites then, this digital marketing plan will not be beneficial for L'oreal and objective
cannot be achieved. This helps to identify those areas where there is a lack of digital
platforms so that strategies can be made accordingly (Bui, 2017).
 Re-examine messaging strategy- Doing digital messaging to citizens of nation to aware
about new and existing products need evaluation again that they are receiving the
message or not. If, message is received then, how much this is useful or not. It analyses
and reflects the productivity of brands that are existing and get promoting through
messaging and evaluates the number of new customers that are connected through digital
marketing plan.
Factors for monitoring digital marketing plan effectiveness
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 Conversion rate- This factor refers to advertising and promoting of products that how
effectively promotion and advertisement of products done on digital platforms through
social sites or through messaging. It monitors new customers that are joined through
digital marketing plan. It also determines the troubles that are emerging during
advertising and promoting (Jackson and Ahuja, 2016).
 Percentage of new customers- This factor refers to new connections of customers made
through new digital marketing plan. This monitors the effectiveness of plan and gives
details of new customers so that L'oreal can aware them about new and existing products.
It is just a simple calculation to calculate how much percentage of customers joined
L'oreal. These customers are connected by digital marketing though social sites or
messaging on their smart phones.
 Return on investment- This factor refers to information regarding increased market
share due to new digital marketing plan according to targeted business objective, if that
much profit is gained. Then, digital marketing plan will be beneficial for L'oreal. This
ROI factor helps to modify marketing plan so that business objective can be achieved
successfully (Staton, 2016).
 Website behaviour- L'oreal has its own website. This factors recommend the popularity
of products within public. People will go through sites to have details of product and to
buy them. It analyses website behaviour and motivates them for chances of increasing
productivity through digital marketing plan. It simply monitors visits per marketing
channels.
Factors for measuring digital marketing plan effectiveness
 Online sales- This factor refers to the information regarding sales done online through
official website of L'oreal or any other merchants. This factor measures the effectiveness
of digital marketing plan and give information regarding increased market share. This
framed that digital marketing is effective or not means if online sale is more than offline
sale, then obviously, digital marketing plan is effective and efficient (Mekonnen and
London, 2018).
 Sales from phone calls- L'oreal has planned to start selling products through phone calls.
This factor measure number of customers who are purchasing products through phone
calls. This factor also helps to take feedback from customers directly and also to solve the
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problems that they are facing in digital marketing. It also gives information regarding
website behaviour because phone number are referred on website only so that customers
need to refer websites.
 Churn rate- This factor refers to number of canceled order placed and how much failure
of payments held. This factor helps to measure those customers who wants to purchase
L'oreal cosmetics product but due to some reasons they are not buying. It is calculated
monthly so that effective number of customers are known (Karjaluoto, Mustonen and
Ulkuniemi, 2015). It helps to make strategies against such type of customers so that they
can also acquire goods and services by L'oreal.
 Customer acquisition cost- This factor refers to cost acquires or invested to connect new
customers. While implementing a digital marketing plan, investment cost is less and
market share is more. But this factor is for future purpose that how much cost is acquired
by L'oreal in digital marketing plan. It also helps to set price of new product according by
measuring investment rate in advance.
 Customer lifetime value- This factor refers to number of clients that are generated by
existing customers. It measures new customers connected through existing customers by
sharing or promoting products on social sites or through messaging. While implementing
digital marketing plan of L'oreal, this makes ease for existing customers to aware new
customers by giving positive feedback (Weitze and et.al., 2018). This can be measured
yearly to have new refereed customer list and have information regarding increased
market share due to this referral process. This tells how much digital marketing plan is
effective.
CONCLUSION
Based on the findings and assessment of different approaches of digital marketing
undertaken by an organization will help in improving the performance and effective planning of
the digital promotional operations. The report covered the environmental factors that will
influence the digital marketing environment of the organization and cosmetic industry. Suitable
assessment of the business with the help of digital and store presence is been analyzed and with
marketing plan for launching luxury as well as the active cosmetics by the organization to
improve the performance and sales of its various divisions. Also, based on the marketing plan
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key measures to evaluate, measure and monitor the effectiveness of the digital marketing
operations and measures that are been undertaken by the organization.
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