Analysis and Development of L'Oreal's Digital Marketing Plan

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This report provides a comprehensive analysis of L'Oreal's digital marketing strategy. It begins by evaluating the opportunities, challenges, and impact of the digital environment on the cosmetic industry, specifically focusing on L'Oreal. The report then compares and contrasts L'Oreal's digital presence with its physical store presence, highlighting the advantages and disadvantages of each. A significant portion of the report is dedicated to developing a plan for organizing digital marketing activities that support L'Oreal's initiatives in building multi-channel capabilities. Finally, the report discusses key methods for measuring, monitoring, and evaluating the effectiveness of digital marketing within the business process, concluding with a summary of findings and references.
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Digital Marketing Plan
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Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Evaluate the opportunities, challenges and impact of the digital environment for L'Oreal
Cosmetic industry........................................................................................................................3
TASK 2............................................................................................................................................5
L'Oreal's business by Compare and contracts the digital presence versus it stores presences. ..5
TASK 3............................................................................................................................................7
Develop a plan for organizing a digital marketing activities that support the L'Oreal's
initiatives of building a multi-channel capabilities.....................................................................7
TASK 4..........................................................................................................................................11
Key method used to measure monitor and evaluate the digital marketing effectivness of
business process. ......................................................................................................................11
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16
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INTRODUCTION
Digital marketing is a process for promoting the product and service in market by using
modern technology. It is mainly based on the internet that includes mobile phones and
advertising channels. This report will discuss about the different opportunities, challenges that
impact on the digital environment of L'Oreal cosmetic industry. It will compare and contrast
between the digital presence and store presence etc. how it will be effective for business
development process. Furthermore, This assignment will develop a plan for organizing the
digital marketing activities and also support the L'Oreal firm to increase their brand awareness
between the peoples. The organization will use the multi-channel capabilities to provide the
information related the product and services to their consumers. This report will discuss about
the key method that help for monitoring, evaluate and measurement of digital marketing
effectiveness in the business development process.
TASK 1
Evaluate the opportunities, challenges and impact of the digital environment for L'Oreal
Cosmetic industry
L'Oreal firm is a leading brand in the cosmetic industry to use the different modern
technology to expand their business all over the world. Digital technology enables the customer
to experience towards the brand and their quality. Many customers are expects to do two
conversation and interact with the cosmetic firms (Camilleri, 2018). In this way, it will create a
direct relationship with the customers by using digital technology such as website, email, social
media networking etc. these are the different type of sources that help for managing and
controlling the communication between consumers and managers.
These technologies make it easy for the people those who are attracted to access the new
trends, look the content and experiences. In this way, the shopping behavior of customers have
shifted towards e commerce and specially the traditional bricks or mortar. L'Oreal is providing
the various type of beauty products such as lipstick, mascara, foundation etc. People can try new
things that's why, organization is providing the wide range of choice within brands that
expanded. On the other hand, Social media is the best platform that has completely disrupted the
ways of brand and also connect with the customer, but it will unshere the total new business
model. L'Oreal brand has quickly moved from product based to experience based model because
they are mainly focused towards the demand of people.
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Opportunities-
Digital technology is great opportunity for cosmetic business to promote their new products and
services in marketplace. Customer behaviour and trends are changing in rapidly due to digital
concept. Beauty is the most important term in the cosmetic industry whereas people can use the
different type of products whereas firm is solved the queries of customer by using web
technology. Nowadays, Many customers are interested in beauty care want to see that how
technology provide a better personal experience and make feel connected. The firm is used the
smartphone application that easily install in the devices (Chaffey and Ellis-Chadwick, 2019). In
this way, customer easily access all the information about the product and their price. It is the
best digital technology for people to check all the availability by using mobile phones.
According to survey, It found that almost 90 % people in UK use the smartphone to get the
information about the product before purchase by using mobile application. On the other hand,
L'Oreal's beauty industry will increase the revenue approximately $389 billion in 2015. L'oreal
has been remarkable on the artificial journey with launch of faced book messenger to produce
the best quality of services. Automate technology has gained popularity in market because
people only use the different platform to operates the product services. In early days, Lo-real
company were slow down and feel embrace with the engagement of consumer and provided the
opportunity by using digital or social media. In this way, it is the fastest way to pick up the
speed. In L'oreal, manager is mainly engaged with the user those who are used the social media
and always influences through beauty celebrities. According to survey, 82 % people believe that
social media platform easily determines the definition of beauty. L'oreal is a leading brand in
terms of digital technology because it will promote their beauty product through online
marketing. It efforts on the snap chat that shows the further evidence.
Challenges-
Technology plays important role in the business process. There are various type of challenges
faced in the digital technology that affects the entire business processing of L'oreal cosmetic
firm.
Cybersecurity - It is main component of cosmetic business because they can use variety
of distributed channel and website to store the information of consumers. In this way, it is
required for organization to maintain the security and privacy in proper manner. Sometimes, it is
the challenges in the business process that affect the operations and their functions.
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Change is expensive – Sometimes, it is difficult for company to adopt new technology
because L'oreal is digitally transformed which requires money and innovative cost create large
barriers in the business development
Impact on digital environment
Many organizations have a specific culture and trends that follow to manage the business
operations and functions. In L'oreal, The employee must follow the key method on daily basis
and it is a type of trends that can big hindrances in the digital transformation. In this way, it
impacts on the digital environment (de Vicuña Ancín, 2018). Therefore, the culture is receptive
to change and also facilitate. It is the main point of the transformation that can impact on the
digital environment. On the other hand, Lack of strategy is another factor that affect the
environment because many employees cannot handle the demand of consumers and not provided
the best services on time. It is needed for organization to plan an effective strategy that
implement in the enterprises operations to manage the business function in effective manner.
TASK 2
L'Oreal's business by Compare and contracts the digital presence versus it stores presences.
Digital presence is simply a term where how the business appears online. This process
will help for organization to increase the popularity in marketplace. There are many people use
the digital technology to increase the speed of enterprises operations. In this way, it is quickly
occupied space of online such as website, social media and other advertising tools when it comes
to create digital presence (Du and et.al., 2018). With the rapid advancement of technology,
online presence plays important role for increasing the business role.
Store presence is also another term where how business appears in the form of physical
existence. Customer wants to check the services by store. It is the best approach to manage the
business operations and functions. There are large number of L'oreal store available in UK.
Manager always trying to design an effective and dynamic ways so that many customer impress
to the layout and purchased the products.
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Compare and contrast between the store presence and digital presence
Digital presence Store presence
Digital presence business does not
believe in physical existing because
they mainly used the website, social
media platform and other application
etc. Many customer use the online
mode to purchased the product and
services.
Store business is selling the various
type of product through the physical
location such as store and chain of
shops. In this way, The organization try
to increase their sales product in
marketplace.
Online presence is dedicated towards
the business process to promote their
new product in market by using
different platforms (Ernst and
Vilhelmin, 2018).
Store presence do not dedicated with
the e-commerce website because it will
have some kind of social media.
It is steps for involved the process of
delivering the best quality of product to
the customer on time. It will be
increasing the popularity of customers
those who will purchased product
through website.
Store presence involves a network and
single physical stores. This product
come from the classic supply chain in
the wholesaler manufacture and
distributor in different locations. People
are buying the item and product
through the store (Hyder, 2018).
Online business has unlimited time and
hour to see the information about the
particular product of cosmetic. Many
customers use the online application to
order particular product at any time.
Store presence has limited hour and
time because it is based on the physical
existence and located at one location.
L'Oreal cosmetic store follow some
specific time and hour to open.
Online business doesn't want as much
employee because it is based on online
platform to easily access the
information through social media
Store business will be required the
manpower so that they can hire many
people as employee in the organization.
It is based on the physical location
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networking. which requires for maintain the
products and services.
Sometimes, Online presence is not so
much effective because many
customers are visiting the website again
and again but cannot buy any product.
In store business, Most the visitors are
buyer. They were come to store only
for purchasing the product.
Online business is the most appropriate
for the global world whereas many
peoples are not going that location or
store. Online presence will help for
people to interact with the organization
and their products.
Store business is appropriate for local
customer those who are buying the
product through nearby store because it
will be more convenient to travel in
nearby location.
TASK 3
Develop a plan for organizing a digital marketing activities that support the L'Oreal's initiatives
of building a multi-channel capabilities
Digital marketing plan is basically process that analyze the overall process and their
functions related the overall cost, budget, market segmentation, marketing, targeting etc. these
are different type of functions implement on the developing plan.
Executive Summary
Digital marketing is a concept that help for managing and controlling the business operations
and functions through online presence. It is needed to implement the strategy on digital
marketing activities to increase the popularity and demand in global marketplace. This concept
is supported the L'oreal cosmetic industry to build their own channel to distributed the
information from one place to another.
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Business objectives
The Objective of L'oreal Cosmetic firm to expand their business all over the world that's why,
they are used the different digital marketing platform such as Social networking and many
more. In this way, the organization is connected with the customer to create an effective
relationship between them (Kasemsap, 2018). It also provides the sustainable consumption
choice while enhancing their business process across the world. This is the important for
organization to set up the specific goals and objectives on the basis of client demand.
Introduction
L'Oreal is the fastest growing organization that provide the different type of cosmetic items
such as Shampoo, Lipstick etc. This organization is used the different type of digital technology
to promote their new product in global marketplace. They are also applied various type of
distributed channel to share the information in effective manner. It has recently set up their own
manufacturing plant in different countries. In this way, it has more responsibilities of
organization to manage the new formulation and operations of L'Oreal.
Situational analysis
The market size of L'Oreal cosmetic is increasing rapidly because in today's world, it is the
fastest growing firm to expanding the business all over the world. According to retail volunteer
of cosmetic product, it found that it is increases from $ 956.3mm to $ 1167.3mm during 2012 to
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2017. It shows that it is a growing trend in the global marketplace due to adopt the new and
innovative technology for purpose of marketing. Digital technology is make up start up at the
early age. This digital technology is solving the problem of consumers. The trend of innovation
expanded to through the different concepts. From the distributor and retailer emphasis in term
of promotional campaigns by using tools or platforms
STP
Segmentation- It is a process of segment the market on the basis of behavior and demographic
etc. According to behavior segmentation, There are many users that are interested towards the
cosmetic industry to choose the item on the basis of their demand. On the other hand,
demographic segmentation, it can be segmented the market on the basis of age, groups and
adults etc.
Targeting- L'Oreal firm is targeting the people those who are aged 15 -40. Many customers
want to do make but they doesn't have knowledge about make up.
Positioning- L'Oreal organization is mainly used differentiate strategy to increase the business
and itself as responsible for organization promoted by the digital tools and platforms. Cosmetic
industry is the fastest growing organization to maintain their position in market place with the
help of digital technology.
Channel
L'Oreal is the fastest growing organization to use different channels and platform to distribute
the information to the customers. It is an effective technique to easily identify the need and
requirement of people. The organization is applied this channel to take feedback through the
people those who are potential consumers (LanganCowley and Nguye, 2019). There are
different type of channel such as Social media campaign, Facebook, online website, tweeter etc.
these are communication channels that help for organization to connect with the customers and
solve their queries regarding the product, quality and price etc.
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Budget
Financial budget is represents L'Oreal strategy for managing its cash flow, income and
expenses. The overall budget of cosmetic industry $123.9 billion to $112.9 from 2012 to 2017
etc. It is very important for organization to handle the business operations because it easily
calculates the overall estimation cost.
Executive and Execution
L'Oreal firm is executing the plan of digitization that help for controlling and managing the
demand of consumers. They also used the different type of marketing tool to manage to connect
with the consumers and providing the information related the products and services. By using
different multi channels, it is successfully executed a plan and activities of digital marketing.
Marketers of any company need to build increase their digital marketing capabilities by
strengthening their existing portfolio of IT infrastructure and their knowledge regarding the
trending marketing functions and strategies. For LO' real company, its marketing strategy need
to be highly customer centric and align with changing and transforming digitization. Along with
it, the marketers also need to build their advertisements contents that highlight the positive
segment of the brand and its products (LanganCowley and Nguye, 2019). For multi-channel
capabilities they must drive their focus in the priorities and must design significant resources and
plans for each channel.
For building multi channel capabilities, multinational companies like LO' real may build
and plan for strengthening its partnership with multi channel handlers. It need to build great
efficacy in field of digital marketing as it is the most trendy, approachable, feasible among all the
channels. For selecting the best option for marketing strategies, the company can go for
comparison and likability of customers related to that particular channel. It need to critically
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analysis the effect of various factors that influence the marketing functions related to company.
In this way, it is creating an effective digital marketing plan to promote the services in
marketplace. Marketer is connected with the potential consumers those who always purchased
the product through online medium. In this way, It is the best technology in the business to
increase the brand awareness.
TASK 4
Key method used to measure monitor and evaluate the digital marketing effectivness of business
process.
Corporate and business environment are continuously getting variant of technological
support for distributing their services at global level and for maintaining this pace within
digitized world, there need continuous inclusion of regular monitoring systems and other
regulatory frameworks to analyze the effectiveness of different digital marketing platforms.
L'Oreal have undergone for variant of digital marketing strategies to strengthen its present image
and value within the market (Li, 2018). As per the designed plan, the effectiveness of digital
marketing method can be evaluated, measured and monitored by applying number of methods,
tests and strategies. Search Engine Optimization, Online content, Web Analytic etc. are the part
of digital marketing methods that must be regulated, monitored every organization to strengthen
its marketing policies and functions.
For LO' real, its digital marketing plan will prove to be successful enough to attract its
customers only if it continuously regulates, monitor and measure all the ongoing processes
related to it. The company need to stay highly active for addressing and analyzing all the tasks
related to digital marketing tools (Negoiţă and et.al., 2018). The company has utilized high level
of resources for establishing and strengthening its marketing strategies, however regular and
continuous assessment regarding the same is necessarily important for receiving long term
impact.
Methods to evaluate digital marketing effectiveness
Evaluation methods for selected marketing strategies need to be timely revised and re-
examined. The company's goals and level of its compliance within marketing strategies need to
be assessed. LO' real may take the use of different tools and strategies to compare and contrast
the effectiveness of different digital marketing platforms.
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The company need to recognize the actual goal of marketing plan to drive it in a specific
direction. LO' real may undergo for suitable auditing process for evaluating the impact of various
digital marketing tools it is utilizing. Apart from this, the content and type of messages it is
delivering to public through digital media platforms can also be evaluated. This can be assessed
through calculating the numbers of customers they have received after implementation of any
new digital media strategy.
For instance LO' real may compare the traffic of customers on its Facebook page and
Instagram page to evaluate the value generated on both the digital platforms. In this way the
company may get an idea about the most effective and impact digital marketing platform that can
be used for its promotional strategy (Shirisha, 2018). Similarly, the company may tend to receive
high amount of strategies to increase its customers at global level through these digital platforms.
By analysing the increment within potential customers after the effect of any digital marketing
campaign could deliver credible results related to its effectiveness.
The most common and significant evaluating tool can be comparing the level of profit
margins through different social media platforms. For example. LO' real may set a comparative
study related to each digital platforms. It can first analyze the effectiveness of different social
media platforms and accordingly it can assess the amount of profit it generated to the company.
In this way, it can evaluate its digital marketing effectiveness and can check whether it is
heading in right direction or not.
Monitoring digital marketing effectiveness
Monitoring the effectiveness of applied digital marketing strategies can be directly linked
with the continuous impact of significant marketing on targeted customers. For example, LO'
real can monitor the effectiveness of its social media marketing by assessing the feedback of
customers and increment in number of potential customers. For proper monitoring process, the
company need to opt for process monitoring that include the assessment related to all the
processes that are being carried out within overall digital marketing plan (Tafesse and Wien,
2018). IT will include number of monitoring assessments related to selection of digital platform,
accumulating sources, developing supportive partners and many other interlinked processes. This
is an elementary function that will prove to be the most strategic and successful function for
organization.
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