Report on L'Oreal's Digital Marketing Plan and Strategy

This report presents a comprehensive digital marketing plan for L'Oreal, a leading cosmetic company. It begins with an environmental analysis of L'Oreal's digital presence, examining the impacts on the cosmetic industry and the challenges and opportunities of digital marketing. The report then critically assesses L'Oreal's business by comparing its digital and physical store presence, exploring various digital tools and hardware to enhance marketing efforts. A key focus is the development of a digital marketing plan and strategy to build multi-channel capabilities, including an explanation of omni-channel marketing. Finally, the report evaluates measurement techniques and performance metrics to assess the effectiveness of the digital marketing initiatives, providing a complete overview of L'Oreal's digital marketing strategy.

DIGITAL MARKETING
PLAN

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Environmental analysis for L'OREAL digital presence and impacts the digital environment for
the cosmetic industry...................................................................................................................1
Challenges and impacts of digital marketing...................................................................................3
TASK 2............................................................................................................................................4
Critical assessment of L'Oreal's business by comparing its digital presence and store presence 4
Different types of digital tools and digital hardware to support and enhance marketing ...........4
TASK 3............................................................................................................................................5
Digital marketing plan and strategy to build the multi channel capabilities................................5
Explanation of Omni channel marketing...................................................................................10
TASK 4 .........................................................................................................................................11
Evaluational of measurements techniques and performance metrics........................................11
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Digital marketing is the tool of marketing which determines that how to promote the
product and services via digital technologies. This is defined as promotional activity that have
different promotional techniques that offers to attract the number of customer through online.
Thus, organization can be used the digital marketing tool such as email, mobile phone, social
media, website, newsgroups etc. for connect with their customer and sellers in order to prompted
the product in all over the world.
The present report is based on digital marketing of L'OREAL. It is the largest personal
care and cosmetic company which serve the hair colour, sun protection, make-up, hair care,
perfume, skin care products to their customers. L’oreal’s have massive 1 billion audience on its
websites and close to 250 million followers on their social networks.
Thus, the report will cover the various activities of digital marketing such as opportunity
and challenges of digital marketing, compare the different physical channels, digital marketing
plan. Lastly report will describe the different methods of monitoring and measuring digital
marketing.
TASK 1
Environmental analysis for L'OREAL digital presence and impacts the digital environment for
the cosmetic industry
Overview of digital marketing
Digital marketing is the way of promoting brands, products and services of the company
in the market through different electronic media and devices. It is called internet marketing,
online marketing or Web marketing (Sheikh and Mannan, 2017). Some examples of digital
marketing include content marketing, search engine optimization, affiliate, pay per click etc. In
the context of L'OREAL, it can be said that it mainly focuses on digital marketing Now a days
people prefer online shopping rather than offline shopping. They prefer to order and choose
varieties of products from the company's Website because it saves their time as well as cost of
travelling.
Therefore, by using digital marketing and advanced technology, L'OREAL can expand its
business and open up new store in Australia and can attract wider range of customers towards
buying their products and services. Digital marketing means make an effective use of social
media platforms, search engine optimization etc. Most of the people have awareness about online
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shopping, so they always search about new trends and products via online platforms. By
uploading products on Website and other apps, L'OREAL can attract wider range of customers.
Comparison of online and offline marketing
Online marketing:
Online marketing is called as digital marketing. It is modern marketing strategy that is
used by several companies for promoting their brand and products (Stephen, 2016). In this type,
companies use internet for advertisements and ask for the attention of the target customers'.
Online or digital marketing processes involves making an effective use of video advertising,
Web content, E-mail campaign etc.
Offline marketing:
Offline marketing is known as traditional marketing. It is the way of promoting brand of
the company and making customers understand about company's products without using internet.
Some ways and methods of doing offline marketing includes: Brochure, Radio, Newspaper,
posters, television, banners etc.
Key benefits of digital marketing
There are several benefits of using digital marketing rather than offline and face to face
marketing. Some key benefits are described as follows:
 Digital marketing is not only effective and beneficial for the company but also beneficial
for customers. This type of marketing not only allow L'OREAL to market their products
and reach to potential customers but also benefits customers with 24*7 services. It makes
customers feel valued and respected. Customers can order their products and services
anytime and anywhere they want, there is no need to go outside and waste their time
(Heinze and et.al., 2016).
 Other main benefit of using social media platforms in digital marketing is that L'OREAL
can make changes and provide satisfactory services to customers because it allows the
company to get both positive and negative feedbacks. Customers give feedbacks via
company's Websites, social media sources and share their experience to the company.
Opportunities of digital marketing
In the context of scope and opportunities, it can be said that there are several jobs
available which are being provide by L'OREAL and other companies. It is stated that digital
marketing creates approximate 1.5 lacs jobs. It is being reported and stated by the Australian
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computer society (Opportunities of digital marketing, 2018). Some opportunities and benefits of
digital marketing includes:
Rise of online consumer power: Digital marketing is rising of online consumer power
as social media platforms provide all type of informations to customers. Company as well as
customer can understand advantages and limitation of products. Customers can also get reviews
about products before making purchasing decision and allow them to get the best product. So it
can be said that increasing online consumer power is the main opportunity of digital marketing.
Understanding effective digital marketing activities: The other main opportunity of
digital marketing is the company can easily understand consumers demands and needs. Search
engine optimization and company's websites allow company to see that what customers have
searched and what type of products they prefer. By global advertisement and direct advertising it
can easily reach to consumers and know about their needs.
Key consumer trends that fill the growth of digital marketing
Digital marketing industry has direct impacts on businesses. Many companies are using
and focusing on digital marketing because it is the best and easiest way to reach globally and
potential customers. It also impacts on consumers buying behaviours and consumers spending
limits. Some consumers trends that fill the growth of digital marketing includes
Voice search: It can be said fairly that up to 2020, almost 50% of all queries will be
voice based because it is rising in popularity. The main aim of using and implementing voice
search tool is to give searcher or customers immediate voice answers about their queries and
answers. So it can be said that by implementing this tool, L'Oreal can take opportunity to
increase customers satisfaction by solving their queries immediately (Almeida-Santana and
Moreno-Gil, 2017).
Live videos: Live contents are rapidly growing segment of internet video traffic. It is an
effective and demanding trend because it is cost effective and take less time than others. With the
help of using this tool, L'Oreal can offer a real time user engagement and improve relationship
with customers.
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Challenges and impacts of digital marketing
Each coin has 2 phase and 2 side positive and negative, Digital marketing has several
positive impacts and benefits but on the other hand, it has some negative impacts. Digital
marketing has several challenges and impacts that are described as follows:
Shifts from brand and suppliers: There are several retailers in beauty products industry
that have high bargaining power. When customers get the same characteristics of products at
lower price then they shift brand and purchase from another shops. Customers can see negative
and positive reviews on company's websites and by seeing negative review they prefer to buy
products from other shops.
The brand experience: In the context of digital marketing there are several policies are
made by L'Oreal like price deduction in refund of products. Some people have bad experience
while purchasing online and they give negative feedback on company's website which can
decrease company's brand image. So, it can be said that these are main challenges in digital
marketing (Challenges of digital marketing, 2016).
TASK 2
Critical assessment of L'Oreal' business by comparing its digital presence and store presence
The use of digital platforms and the internet for revenue generation.
Digital platforms and internet is the most effective way to promoting the product and
services in the market. Digital marketing aids to create engaging campaigns using content
marketing tactics. This content (images, videos, articles) can gain social currency and it being
transfers from user to user and becoming viral. Thus, the main uses of digital technology is
enhanced the product visibility. It leads the huge demand and high demand convert into the
higher revenue. Digital marketing of L'Oreal can enhance revenue because 75% of people active
on internet and they attract towards the different advertising and want to purchase the product.
So, it directly impacts on the revenue generation. On the other side, digital platforms and internet
can build customer loyalty and create a reputation for being easy to engage with. It help to create
the huge revenue for the L'Oreal (Laurens, 2019).
The role of digital marketing communications in relation to the 7Ps.
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7 ps of marketing is the tool that helps to Loreal for achieving the objective of the
organization. Thus, this is the marketing tool that helps to identify the needs of customer. This
tool is important for digital marketing because this tool describe the pricing, promotion, and
other activities (Stewart, 2019). On the other side, More and more people are turning to the
internet to buy products, research companies and product lines as well as find cheaper and better
deals. So the analysis of 7 PS is more important because this analysis is helps to target the
audience. Thus, the role of digital marketing communication in related to 7 ps which
described as follows -
Product – For launching the new product in the market L'Oreal can use the digital marketing
campaigning. Thus, this campaigning helps to introduce the product in the market. As through
digital marketing product can be sold through websites and it helps to gaining a hug customer
base.
Price - In this, Through digital marketing communication channels firm announce the different
price of the product. Thus, online platform provide the cheaper product as compare to the offline
stores. So, it helps to increase the demand of product.
Place – In this stage, through digitalization L'Oreal can sale their product at any place with the
use of different digital channels.
Promotion - L'Oreal using the different promotional activities and also they use digital
marketing to promote the product and advertise on different marting channels.
Process - L'Oreal can adopting the advance technology to make creative and designing the
product according the customer needs.
People – Through, digital marketing L'Oreal can hire and recruit the employees. Online
recruiting is all about finding quality candidates and making connections with them.
Physical evidence – Digital marketing is providing online experience to consumers that helps to
enhancing the shopping expiring to the customer.
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Different types of digital tools and digital hardware to support The marketing activities.
Artificial marketing - This is the best tool of launching product and services (Jorge and Lázaro,
2019). In this L'Oreal make contract with third party and share part of income to the agency that
helps to generate the high sales on online platforms. Thus, this is the best activity that helps to
increase the great number of customers.
Social media marketing - This is one of the best marketing tool that help to attract the large
number of customer. Thus, L’Oréal can encourage the local people as they search the website
and like the L’Oréal page.
Consumer life-cycle stages of digital adoption.
Innovators - Customer attract towards the new product of L'OREAL like new organic herbal
and beauty products.
Early adopters –people who want to use and exploring the e -commerce platforms. L'OREAL
can target those who easily influence by the online advertisement.
Early majority – People who purchase the product when it comes into mind of people during
the success phase of the product. Thus, in this stage L'OREAL makes the product according to
the customer needs (Langan, Cowley and Nguyen, 2019). Provide the best marketing content and
firm should be continuing to provide quality service and best shopping experience, and taking
every opportunity to create an emotional bond with customers.
Late majority – Customer who just started of using the online services. Thus, This phase is
described that L'OREAL trying to keep the customers and trying to sell them more by cross
selling and up selling.
Laggards – Those customers who are first time buying the L'OREAL Product. In this stage,
L'OREAL begins the relationship with customer and try to become aware of the existence of
brand, product, or service.
The growth of online transactions and e-commerce.
There is high growth of online transaction and e-commerce because many people want to
purchase the product through online due to engaged life and manage the work life balance (Tapia
and Israel, 2019). Thus, the demand of e- commerce is high. For example, amazon is the good
example of e-commerce as the demand of amazon is increase day by day.
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The role of different automated and non-automated sales and support activities
Automated and non automated sales support activities helps to L'OREAL that they using
software to regulate the business tasks of sales as to manage the different activities. Henceforth,
this is inclusive of contact management, order processing, information sharing, inventory
monitoring and control, order tracking, customer relationship, sales forecast analysis and
employee performance evaluation etc.
Automated - Automation sales provide the cost benefits as This makes everything more efficient
and has a direct relationship with the revenue generated by the sales team. Thus, automation
sales plays a crucial role because it aids to increase the demand of product because people easily
purchase the product via internet.
Non automated - This procedure gaining less importance due to beginning of digitalization.
Thus, customer mostly prefer to purchase the product through online as compare to go offline
and buy product form stores (Popova, 2019).
TASK 3
Digital marketing plan and strategy to build the multi channel capabilities
Executive summary
L'OREAL is one the largest cosmetic and personal care company that offers the different
product to satisfy the customer. Quoted enterprise focuses on increase the sales by offering the
new and innovative products via using the digital technologies. Thus, L'OREAL focus on sale
their organic products through digital marketing. Thus, digital marketing is one of the best
platforms by which chosen firm focuses on developing a digital technique in digital environment.
Digital marketing is online platform which attract the large number of customer it is process of
promoting the enterprise product and services. This assessment Is going to present clear
objective of the enterprise which is wants to achieve.
Mission and vision - The mission of L'OREAL is that they meet the customer beauty
needs by offering the best quality product in each product category and the vision statements is
to become consumer first choice in beauty products.
Digital marketing goal - To increase the number of customer and sales of organic and
herbal product up to 30% by the end of 2020.
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Situational analysis
Strength
 A different product category
 Offer natural and organic product
which satisfy the customer due to
fewer chemicals
 It offers products on low prices.
Weakness
 Not properly done organizational
structure due to different sub division.
 Shrinking profit margin
Opportunities
 Huge demand of organic product
 Enhance the customer base by using the
online marketing (Ritz, Wolf and
McQuitty, 2019).
Threat
 Huge competition
 Changes in customer preferences
Political factor
L'OREAL is the manufacturing company
which establish in pairs. Henceforth, mostly
government policy of France is affects the
company because government put pressure on
L'OREAL that they provide less chemical
product to customer
Economical factor
The rate of unemployment is high which
creates the negative impact because customer
are not spent their money in beauty product due
to low income.
Social factor
Social factor is also the most important because
the buying behaviour and life styles changes
and that impacts the demand of product.
Technological factor
Due to high technology and digital marketing.
It can help to increase the sales and attract the
number of customer because online marketing
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Therefore, high demand of organic and herbal
beauty products will increase the sales of
product.
is one of the best platform that leads the
number of customer.
Competitors :
Competitors is the biggest threat for ever organization as L'OREAL has also threat from
their competitors. The biggest competitors of L'OREAL is Revlon, Lakme, YARDLE,
GARNiER (Jorge and Lázaro, 2019). Thus, this all rivalries have good digital marketing strategy
and they also have effective presence in online marketing. This is the biggest challenge for the
L'OREAL as they also increase their presence on online marketing.
Competitor analysis
Porter five forces
Threat of new entrants High The threat of new entrants is
high in beauty industry
because any small start-ups
can start the online marketing
for selling the product with
few and small investment.
Bargaining power of customer Medium to high The power of customer is high
because they easily switch the
product as they have lot of
options and choices.
Bargaining power of suppliers Moderate Supplier of the L'OREAL have
low bargaining power because
beauty industry have few
companies. Hence, power of
suppliers is moderate.
Threat of substitutes High The threat of substitute product
is high because there are lot of
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similar commodities and this
provide the same satisfaction
to the customer.
Rivalry within industry High Competition is high in the
beauty industry because all the
competitors has strong
presence in internet and they
also provide the quality of
product to their customers.
Thus, competitors provide the
different opportunities to their
customer in order to attract the
number of customer.
STP (Segmentation, targetting and positioning)
L'OREAL target the customer on the basis of demographical segment. In this firm target
mostly women and girls on the age of 16 to 45. Thus, this age group are belongs to upper middle
class and they have high capacity to purchase the cosmetic products (Han, 2019). On the other
side, the positioning strategy of L'OREAL is that they use the digital marketing strategy for
promoting their products. L'OREAL organic product has chosen to position itself as a market of
high requirement of organic products. Therefore, L'OREAL promoting their product on social
media for attracting the large number of customer.
Marketing mix
Place – The product of L'OREAL is available on online and offline
Price – Penetration pricing strategy is suitable when L'OREAL launch the organic and
herbal beauty product to their customer.
Promotional – Advertising in social medial and other platform is being used to promote
the product.
Product - L'OREAL concentrate on providing the organic product to their customer in
different product categories.
Monetary and evaluation
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