Digital Marketing Analysis and Plan for L'Oreal Cosmetics

This report provides a comprehensive analysis of L'Oreal's digital marketing strategy. It begins with an introduction to digital marketing and the chosen organization, L'Oreal, a leading French personal care cosmetics brand. The report then delves into the digital environment, exploring opportunities and challenges within the cosmetic industry. It examines the differences between online and offline marketing concepts, highlighting the benefits of digital transformation for L'Oreal. The report further analyzes the digital platforms and internet usage for revenue generation, including the role of digital marketing communication in relation to the 7Ps of marketing. It also covers various types of digital tools and digital hardware used to enhance marketing, along with the growth of online transactions and e-commerce. The report includes a narrative story related to L'Oreal's digital marketing experiences and challenges, followed by a discussion on organizing digital marketing activities and building multi-channel capabilities within the organization. Finally, it outlines methods for monitoring and measuring digital marketing effectiveness, concluding with a summary of the key findings and recommendations. The report uses the provided document as its primary source, providing a detailed overview of L'Oreal's digital marketing activities, challenges, and strategies.

Digital Marketing
Plan

Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
The digital environment.........................................................................................................3
Opportunity of digital marketing............................................................................................5
Challenges and impact of digital technology.........................................................................5
TASK 2............................................................................................................................................6
Digital platform and internet for revenue generation.............................................................6
Role of digital marketing communication in relation with 7Ps..............................................6
Types of Digital Tools and Digital Hardware to enhance marketing.....................................6
Growth of Online Transaction and E-commerce....................................................................7
TASK 3............................................................................................................................................7
Narrative story:.......................................................................................................................7
Organisation of digital marketing activities and building multi-channel capabilities in an
organisation............................................................................................................................8
TASK 4..........................................................................................................................................10
Methods of Monitoring and Measuring Digital Marketing..................................................10
CONCLUSION..............................................................................................................................12
References......................................................................................................................................13

INTRODUCTION
Digital marketing is one of the emerging tools and techniques that have been adopted by
many organisations for promoting their product and services in digital form (Glowik and
Smyczek, 2012). It is basically the promotion of products or brands through electric media.
Moreover, some of the marketing experts are considering this process so that new techniques and
strategies can be ascertained and developed for approaching customers as well as new ways of
understanding their needs. In this report organisation chosen is L’Oreal, a French personal care
cosmetic brand that deals in hair colour, skin care, sun protection and perfume etc. Now, L’Oreal
is amplifying itself within to digital marketplace in order to gain competitive advantage. This
report is going to conduct environmental analysis of digital presence, focusing on opportunities
and its impact in cosmetic industry. Additionally, it has examined the key digital tools,
platforms, and channels and compared digital presence with physical presence. Moreover, this
report includes a plan for organising digital marketing activities and methods for monitoring as
well as measuring digital marketing efficiency.
TASK 1
The digital environment
Digital environment refers to the integrated communication environment where several
electronic or digital devices used for communicating and managing the activities within business
(Carr and Newell, 2014). Now a days, these digital integration basically used by companies for
performing activities related with digital marketing that support them by providing a medium to
communicate with large number of customers together.
Digital Marketing
Digital marketing is defined as a process of marketing as well as communicating the
product or services to customers using digital technologies which includes internet, display
advertising, mobile phones and other digital medium. With the increasing competition as well as
approach of customer toward digital channel for purchasing, L'oreal has also stepped for digital
transformation. This help a lot in increasing customer base and stepping ahead within
competition by adopting a channel to directly integrate with customers and solving issues they
are facing to improve brand image.
Difference between online and offline marketing concept

L'oreal is using both online as well as offline marketing concept in order to communicate
and sell out its product or services at marketplace. Both the channels have their own advantages
but are totally different from one another which can be better understood through the following
table:-
Basis of comparison Online Marketing Concept Offline marketing concept
Cost The cost of online marketing is
much affordable as major
expenses are required to pay in
starting i.e. starting optimised
website, posting ads over social
media (Camino and Rúa, 2012).
The expenses of L'oreal was much
higher in context of offline
marketing as it has to maintain stock,
pay rent, give salaries, payment of
bills and update of advertisements.
Exposure Online marketing support L'oreal
in increasing its customer traffic
i.e. upto 1 billion visitors over its
website that also supported in
increasing revenue of company.
In offline marketing the sale of
L'oreal is not much higher as stock
remains limited and also customer
exposure is not regular due to barrier
of customer approach.
Convenience It reduces the barrier of time as
well as place by providing an
option of anytime purchase to
customers hat supported L'oreal
in increasing its market base.
Offline marketing is convenient as
customers can purchase L'oreal
product by trying that but it limit the
customer visit i.e. only at the time
when stores are open.
Key benefits of digital marketing
After getting into digital transformation, L'oreal get a huge benefit which supported it to
achieve a greater position within marketplace. These benefits of L'oreal are explained below:
 By setting up online website, L'oreal become able to increase its customer base as it get
up to 1 billion customer visitors on their website.
 It also get benefited by performing personalised marketing activities that help in keeping
its customer satisfied as they option to directly interact with customers.

 It also help in improving the internal communication of L'oreal management that support
it in enhancing the quality of services by maintaining a proper coordination.
 L'oreal get benefits with 45% growth of the business after getting digital transformation
and by approaching the customers worldwide.
Opportunity of digital marketing
Following are the opportunities that are present in front of L'oreal after getting into a
digital transformation:
Understanding of customer insight: Digital technology has improved the way L'oreal
approaches and satisfies its customers. As by using online survey as well as data regarding the
most viewed product company will be able to have an insight of customer regarding the products
which are more in demand (Durand, 2019).
Rise of online consumer power: Digital transformation has also supported in increasing
the customer base as with the help of internet company is approaching people throughout the
world by promoting products through its online website or social media marketing.
Challenges and impact of digital technology
Apart from all the benefit which it provide to L'oreal there are number of challenges
which company has faced throughout its journey of digital transformation. These are explained
below:
Shift from brand: The competition over digit channel is very higher as customers can
get number of alternative brand over internet to opt one among them that provide more benefit in
term of cost, quality and image (Aragón, 2014). This has increases a challenge of reduction in
customer base due to brand switch.
Negative publicity: In this age of digital technology the demand of customer is
increasing very quickly as they want more easier and convenient services that proves to be major
challenge in front of L'oreal. In addition to this dis-satisfactory comments from customer also
lead to negative publicity which influences the customer choices.
Multitude of different devices: Another major challenge faced by L'oreal is that it
become very difficult for it to track the devices that usually customer uses in order to make
online purchase so that they can perform promotion over that to attract customers.

TASK 2
Digital platform and internet for revenue generation
Digital platform as well as internet has provided several opportunities to L'oreal for
keeping its customer satisfied and earn higher revenue from its services. Following are the
platform that are being used by L'oreal:
Digital platform: Under this L'oreal usually place their advertisement over Television that are of
approx 30 seconds in order to inform customer about product as well as their benefits in order to
attract them and increase their sale as well as revenue.
Internet platform: In this L'oreal generally uses two channels that are official website of
company which enlists a detail description about the number of product, its uses and benefits to
promote as well as sell them online. Another channel used by L'oreal is social media sites that
includes Facebook, Twitter, YouTube etc. where they post review of their product given by
customer in form of comments, pictures or videos. This help in attracting customer through the
experience of others which in turn also help in increasing its sale (Sheth, Sinha and Shah, 2016).
Role of digital marketing communication in relation with 7Ps
Digital Marketing communication works in an effective way where elements of marketing
mix are concerned. Any plan for an effective digital marketing would drastically fail with lack of
this communication. For instance, it is essential for L’oreal to communicate its product strategy
as well as specifications with its stakeholders through digital marketing which help in developing
interest of customers. As for pricing, the firm must research and quote the most favoured pricing
in its digital marketing campaign and communicate the same to its internal and external
stakeholders that would help in enhancing the company’s perception (Tortajada Trullenque,
2017). For place and promotion, communication would help in deciding the most used channels
and social media portals to place and promote their product. In addition, people associated with
digital marketing, both employees and customers, must be communicated during campaigns to
acquire real time effective feedback. Lastly, L’oreal also could ensure digital marketing
communication of designing and packaging its products to enhance its appeal in the market.
Types of Digital Tools and Digital Hardware to enhance marketing
There are various aspects which is essential for a firm like L’oreal to adopt to effectively
support and enhance their marketing. These digital tools work as a guidance for an organisation

to up their competence in the field of digital marketing. Below are the various digital tools and
hardware essential for L’oreal:
 Search Engine Marketing: As one of the most used types to support and enhance digital
marketing, it helps the company in effectively advertise its products in terms of in
number of search engines as well as enhance their visibilities in paid results. Thus, it
helps to make the offering and web content visible which is effective for digital
marketing of L’oreal.
 E-mail Marketing: Another prominent type of digital tool which the firm could use for
its digital marketing is E-mail Marketing. It is a quite standard yet effective method
through which objectives of digital marketing could be achieved. In addition, it is very
beneficial in terms of enhancing brand loyalty as well as giving personalised services to
various customer groups. Newsletter campaigns, product updates, confirmation emails,
all could be effectively and quite conveniently be achieved if L’oreal opts for E-mail
Marketing.
Growth of Online Transaction and E-commerce
With rise in customer awareness and digitalisation, each customer is aware of
technological advancements happening in commerce. With time and rise in access of
technologies through easy internet access and smartphones, the rise in e-commerce and Online
transactions is evident (Ahmed, Sultana and Ahmed, 2018). Moreover, with mobile applications
like Amazon and Snapdeal, organisations like L’oreal could trade their products internationally.
In addition, with services like PayPal, it is getting very easier for customers and organisations to
pay and receive payments effectively. This trend is likely to grow in the future as each factor
within internal and external business environment supports convenience and security being
provided in online commerce and transactions. Moreover, firms must use these aspects to
enhance their technological capabilities and develop a better perception in minds of their
stakeholders.
TASK 3
Narrative story:
In today's era L’Oreal is one of the leading brands in personal care beauty products.
When they were emerging themselves in to digital marketing they have faced many issues and

challenges in developing setting up their business operations over digital platform. One of the
issues faced by them was Julia Roberts case that the ad campaigns were featuring pretty woman
was overly airbrushed. This ad was investigated by Liberal Democrat MP Jo Swinson that ads
are misleading negatively to general people as it was overly perfected and unrealistic image. The
Advertisement Standard Authority (ASA) ruled over it that such ads are breaching advertising
standards code for exaggeration and misleading local people.
Moreover, Swinson complained that this image of celebrities has been digitally
manipulated as L’Oreal was not able to meet up the requirements which they have claimed
regarding its products quality. From such instance L’Oreal of United Kingdom have admitted
that this image has been digitally retouched to lighten up the skin, clean make up, reducing up
dark shadows and darken eyebrows. However, it was also claimed that after such digitalisation
with the picture there were still signs of ageing as crows so that image can accurately illustrated
so that result can be achieved. Furthermore, on the basis of evidence, it has been concluded that
ad image accurately illustrated the effect of product that could achieved but the image had not
been exaggerated by digital post production techniques. Apart from this Swinson said that
pictures of flawless skin and super slim body do not reflect reality. So in order to overcome this
issue L'oreal has formulated a marketing campaign plan which support in improving its market
image in front of customers.
Organisation of digital marketing activities and building multi-channel capabilities in an
organisation
Multichannel approach refers to the practice adopted by company to build interaction
with a wide range of customers by way of a number of channels, i.e., direct as well as indirect, in
order to persuade them for buying the products and services delivered by organisation in
marketplace (Ismail, 2018). L'oreal is a the largest and leading company within the cosmetics
industry. Thus, it is largely essential for enterprise to indulge in digital transformation in order to
make sure that they remain at the top position perpetually and continue to retain the loyal base of
customers by providing high quality cosmetic products. In this regard, this leading cosmetics
brand has now come up with a digital marketing plan to undergo digital transformation within
the organisational premises. This plan will assist the enterprise in effectively organising digital
marketing activities as well as providing efficient assistance to company in development of
multi-channel capabilities for its active and luxury cosmetics division.

In this regard, company has formulated a digital marketing plan which comprises of a
number of components which are described below:-
Background: L'oreal is a leading cosmetics brand which possesses high name and stake
in global marketplace owing to which it becomes essential for enterprise to indulge in effective
marketing activities to lure the attention of customers towards its product portfolio. In this
regard, to build an effective communication with clients, this organisation has been using brick
and mortal style stores wherein customers can come up and raise a query related to product
before making purchase of any cosmetics item (Hult and Sjölund, 2017). The company has two
segments within cosmetics branch, namely, active and luxury cosmetics segment.
Marketing initiatives: L'oreal has planned to undergo digital transformation wherein
company is making efforts to build an optimum interaction with clients so that they are well
acquainted with the products being provided by company within cosmetics segment such as
lipstick, eyeliner, nail paint, foundation, eye shadow etc. The digital marketing head of this
organisation has planned to make use of social media channels such as Baidu, Facebook,
Instagram, Snapchat, YouTube and also making the website more attractive by putting digital
content on it. At present, the visitor count on the company's website is 1 billion and also
organisation has over 1.6 billion cookies. Owing to the adoption of digital marketing strategy,
company is targeting at enhancing the existing sales and profitability levels for the cosmetics
segment.
Promotion Mix: L'oreal is making use of a promotional mix to make sure that the digital
marketing activities planned by the enterprise are being carried out as per the organisation and
management decided by the company. Advertising- It is one of the most significant and important elements for L'oreal wherein
they create a viable digital marketing campaign program where they will demonstrate the
products and product portfolio of entity and also emphasize upon the unique selling point
of entity to establish a positive and impactful image in the minds of customers. This will
take place by way of a 15 to 30 seconds long advert. Also, here the company is making
use of e-mail marketing as well as publishing of digital content on entity's website to grab
the attention of people. Public Relations- This is yet another crucial element which is being used by Loreal to
build a positive and effective image in market and assists the enterprise in launching new

products within cosmetics segment and thereby aiming at enhancing the existing sales
and profitability of company in marketplace. Personal Selling- This is being carried out by the organisation within their brick and
mortar style stores wherein L'oreal has showcased a wide variety of cosmetics products in
order to gain the attention of customers and luring them at first impression. This assists
Loreal in building a direct contact with customers and adopting such tactics which can
help them to retain the loyal base of consumers for a long duration of time.
 Sales Promotion- This is an effective tool which is a crucial component of promotional
mix and assists a company in stimulating customer purchases and is generally based upon
an immediate or short-term goal and objective (Cunha, 2017). In this regard, L'oreal is
striving to enhance the existing sales by 25% by next 2 years and profits by 10% by the
end of next 1 year. For this, organisation has opted for the option of digital campaigns
and social media marketing. With this, they will be able to increase the name and stake of
company in marketplace.
Opportunities: L’oreal possesses the opportunity to enhance the existing share in market
by making use of digital marketing techniques. When market share tends to increase, this implies
a significant rise in revenues and profitability levels of company within global marketplace in
context of active and luxury cosmetics segments.
Challenges: The biggest challenge that L’oreal currently faces and may even continue to
face in future is the slow growth of this organisation within e-commerce market which tends to
become a major setback for the entity.
TASK 4
Methods of Monitoring and Measuring Digital Marketing
For an organisation as big as L’oreal, it is of utmost importance that it effectively monitors
and measure its digital marketing plan and every aspect cover under it. The sole reason for such
measurement and monitoring is that it would assist the company in developing strategies that are
quite suitable for its current situation and helps in engaging more customers with its effective
plans and various existing and new products. To achieve this, Following are methods appropriate
enough for L’oreal:
 Key Performance Indicators:

The first and the most crucial method of measuring digital marketing is through
establishing effective KPI’s to monitor its success rate. The company is working on three
major elements covered in its digital marketing. KPI’s would assist in monitoring their
effectiveness as per the set standards. For its Marketing campaigns in which the firm
would be showcasing compelling 15-30 seconds advertisements, the firm could use
viewership as a KPI. It would effectively assist L’oreal in analysing the direction in
which its campaigns are heading and appropriately modify their content as per customer
preferences. Another KPI which the firm could use for its digital content is customer’s
engagement. Organisation must effectively set up parameters on views, likes, shares and
re-tweets of its content and measure it periodically to identify ways in which L’oreal
could develop more compelling and engaging content. For social media, the organisation
must set up the number of people associated with their social handles as a KPI. This
would allow them to witness people who like their pages on Facebook, follow them on
Instagram, subscribe their YouTube channels, etc.
 Processes for Measuring Digital Campaigns:
To determine campaign effectiveness, L’oreal could use Google AdWords as a major tool
for quantifying the success of its campaigns. This tool is effective for the company as it
manages PPC ads for an organisation effectively. Thus, it would be helpful in giving L’oreal
better management scope of their marketing advertisements
 Performance Measures via Online Metrics:
There are various online metrics that give access to real time performance of a company within
domestic, national as well as international marketplace. It is an essential element which
is necessary for L’oreal to measure effectiveness of its web content. Apart from certain
KPI’s, online metrics would present the performance in a statistical manner, thus,
assisting the organisation on aspects which are required to be worked upon. To attain
effectiveness in this, HootSuite is a metric which functions as a tool to determine
overall social media performance for an organisation. It covers their web content as
well as customer interactions. Another method through which performance could be
measured is by applying Digital Marketing Measurement Formula, which is “Traffic x
Conversion Rate x Value” and would help this company to identify its market
performance (Ahmed, 2017).

 Population Measurements:
Another major aspect for measuring and monitoring digital marketing effectively is through
measuring population which is associated with the company and its content on the social media.
It is very tough for a company to monitor each and every channel simultaneously to gain access
to their real time performance (HUANG, 2014). To achieve this, Webtrends is another method
which would be giving this management to L’oreal to effectively contain data about all of its
channel and customer interaction on each by using the tool. It would measure population
following and interacting with the company effectively.
CONCLUSION
From the above discussion it has been concluded that digital marketing has been
becoming essential component in the success of many organisations. It helps an organisation to
understand the different opportunities, challenges and its positive as well as negative impacts
upon today's digital environment. Eventually, it helps an organisation to gain knowledge of the
issues that they can face while carrying out online marketing rather than offline marketing of
products and services they are offering to its potential customers. Moreover, it has been observed
that the company is adopting digital tools such as social media platform like Facebook, Snapchat
Twitter, Instagram and YouTube along with promotion mix techniques in order to achieve
sustainability at market place. Additionally, it is analysed that the entity needs to monitor
marketplace by measuring the needs and requirements of digital marketing tools and techniques
effectively so that they can ensure sustainability for a long duration of time.

References
Glowik, M. and Smyczek, S., 2012. International Marketing Management: strategies, concepts
and cases in Europe. Walter de Gruyter.
Carr, M. G. and Newell, L. H., 2014. Guide to fashion entrepreneurship: the plan, the product,
the process. A&C Black.
Camino, J. R. and Rúa, M.D.G.L., 2012. Dirección de Marketing. Fundamentos y aplicaciones.
ESIC Editorial.
Durand, A., 2019. Marketing and Globalization. Routledge.
Aragón, M. E. E., 2014. Marketing en la actividad comercial. Editex.
Sheth, J. N., Sinha, M. and Shah, R., 2016. Breakout strategies for emerging markets: Business
and marketing tactics for achieving growth. FT Press.
Ismail, A., 2018. International Marketing Strategies in the Celebrity Cosmetics Industry: A Dual
Case Study: Huda Beauty and Fenty Beauty.
Hult, M. and Sjölund, J., 2017. Dynamic Marketing Capabilities: Organizational Renewal
Towards Social Media Marketing.
Cunha, M. D. C. D. O., 2017. L’Oréal: Ombré hair kit consumer-focused product development
to find new market opportunities(Doctoral dissertation).
Ahmed, S. H., 2017. Challenges and opportunities of a media planner.
HUANG, J., 2014. Plan de negocio para una agencia dedicada a marketing digital,
especialmente para el mercado chino (Doctoral dissertation).
Ahmed, J. U., Sultana, H. and Ahmed, A., 2018. Patanjali ayurved invades India. DECISION.
45(1). pp.75-91.
Pedraza Sanchez, V. L., Acercamiento a la relación del marketing digital con el consumidor y
descripción de la tendencia en Colombia.
Tortajada Trullenque, S., 2017. Plan de Inbound Marketing para Yves Rocher.
Fernández Pérez, R., 2018. Plan de Marketing: Maquillaje de MAC Cosmetics para hombres.
Ho, T., 2018. Ambition and Ethics in Marketing: When ambition affects companies' ethical
behavior.
Ghosh, A. and Sharma, A., 2017. Social recruitment: Investing in social currency. In
Contemporary Issues in Social Media Marketing (pp. 95-109). Routledge.