L'Oreal Digital Marketing Report: Customer Engagement Analysis

This report provides an in-depth analysis of L'Oreal's digital marketing strategies and customer engagement techniques. It begins with an executive summary outlining the company's global presence and focus on high-quality cosmetics. The report then delves into the theoretical aspects of customer engagement, examining how L'Oreal utilizes its website as a crucial digital marketing tool to promote products and interact with consumers worldwide. It explores the application of customer engagement theories, the segmentation of the market, and the importance of online shopping experiences. The report also covers the website's role in customer engagement, including recommendations for improvement and strategies to enhance sales and market reach. The conclusion emphasizes the effectiveness of digital marketing in L'Oreal's success, providing a comprehensive overview of the company's approach to reaching consumers in the global market.

Running Head: Digital Marketing
L’Oreal
Principle of social media and digital marketing

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Executive Summary
L’Oreal Company was established in 1909 and their primary activity is production of high class
cosmetics. L’Oreal’s products are being distributed across the globe and with this; company has
developed an effective goodwill across the globe. Under this report, strategies used for engaging
the customers with the company will be covered with regards to the L’Oreal Company. Further,
report will include the customer engagement theory as well as the usage of company’s official
website in terms of promotion of their products in the international market. In the next phase of
the report, digital marketing tool will be used for gaining the consumer’s attention towards the
company as well as the implication of the customer engagement theories will also be covered.

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Table of Contents
Executive Summary.........................................................................................................................2
Introduction......................................................................................................................................3
Analysis of Engagement theory and company’s website................................................................4
Website as a digital marketing tool..............................................................................................5
Website as customer engagement tool in L’Oreal...........................................................................6
Recommendations............................................................................................................................7
Conclusion.......................................................................................................................................8
References........................................................................................................................................9

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Introduction
L’Oreal is cosmetic manufacturing brand located in Clichy, Hauts-de-Seine, France. They have
another registered office in Paris and L’Oreal is known as the largest producer of cosmetics
across the globe. L’Oreal has developed unique image in the global market through delivering
adequate qualitative products. L’Oreal has attained the adequate goodwill in terms of producing
high quality cosmetic products. To attain positive image, L’Oreal has invented the strategy to
analyse the demand of the consumers according to their culture, country, living standard, etc.
They have adopted this strategy and with the help of this strategy, company has successfully
fulfilled its consumer’s demands. Apart from this, they also concentrate on rectifying the
consumer's issues at the priority basis, this is the primary activity through which consumer's
interest could be turned towards the company. In order to fulfil all types of consumer’s demands,
L’Oreal has invented various class of cosmetic products under which various range of products
are available. This strategy helps them to fulfil all types of consumer’s demand by providing
them adequate qualitative products as per their range.

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Analysis of Engagement theory and company’s website
Consumer engagement theory is crucial component in order to attract the consumers towards the
company. To perform this activity, organization has various strategies such as providing those
offers, discount over the prices of the products, reward points, etc. Under this activity,
organization’s efforts are included in order to motivate the consumers. Targeting audience,
promoting the particular range of products, influencing them towards the organizational
products, etc. are some of the functionalities which are crucial component of customer
engagement theory (Gaston-Breton & Martín Martín, 2011). It is the procedure of targeting
audience for a particular product which are being made with regards to the demand of the
consumers for enhancing the demand for the products manufactured by the organization. Various
methods are available under this framework which could be used for engaging the customers
(Keegan & Green, 2015).
L’Oreal is a multinational cosmetic producing company and majorly, they use digital mediums
for promoting their product in the international market. This medium is cheap as well as effective
enough in terms of traditional medium of promotion and advertisement. To perform this function
in an adequate manner, L'Oreal uses their official websites for promoting their newly launched
products as well as to promote existing range of products. They have shared adequate amount of
information in relevance to their huge range of cosmetic products in order to spread the
awareness amongst the public. This helps the consumers to select the most appropriate product
as per their demands. Organization has segregated their huge market as per the consumer’s
demand, purchasing power, and through various other mediums. After segregating the
consumers’ on the basis of above mentioned criteria, appropriate promotional techniques and the

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customer engagement techniques are being implemented for generating positive outcomes for the
organization (Wang, Lu & Malhotra, 2011).
Apart from the above mentioned techniques and features, organization could use various types of
strategies through customer engagement in the organization could be enhanced (Biswas & Roy,
2015). These strategies are the inviting the customers at the launching event of new products by
the company, offering them free samples of the relevant products for describing the effectiveness
of the product, attracting consumers by offering them relevant and adequate discount and other
offers schemes, etc. All these strategies are being used by the L’Oreal at the international level
for promoting their products and to enhance the demand for their products in the international
market (Colquitt, et. al., 2011).
Maintaining adequate relationship between the customer and the organization is another crucial
element of customer engagement approach. This relationship could be developed and maintained
through providing adequate qualitative products and the service (Ndofor, Sirmon & He, 2011).
After sale service is another effective approach which could be used for enhancing the customer
engagement towards the organizational functionalities. Under this approach, L’Oreal has adopted
the most effective technologies such as taking feedback from the consumers and rectifies them in
the reasonable time period to provide consumer’s a satisfactory responsive behaviour. Taking
feedbacks and complaints on priority basis given by the consumers is quite an effective tool
which has the ability to enhance the relationship of the company with the consumers as well as it
has the capability which provides business adequate growth and expansion opportunities in the
global market (Kim & Mauborgne, 2014).

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Website as a digital marketing tool
As per the research conducted by the Nathan & Yeow (2011), websites play crucial role in terms
of promotion and the advertisement of the business as well of the products of the organization.
This is the most effective tool of the e-commerce industry and it has the capability to cover the
large part of the market in terms of promotion of the product. Under this type of promotional
activity, organization needs to perform segmentation strategy under which internet users are
being segmented on their usability basis. Various mediums are available to segment the internet
users such as demographics, risk perception, etc. In order to use the website as the most effective
tool for promoting the organization’s products in an effective manner, L’Oreal has invented the
strategy under which their official website is being designed in such a manner so that it could
attract the various ranges of the consumers in an appropriate manner. Usage of colours,
animations, designs and the product's information is highlighted on their website which turns
into an important element of the promotional campaign (Akanbi & Adeyeye, 2011).
Majorly target market audience for the L’Oreal through their website is the young age group
people i.e. people 18-35 age groups of people. They are found as the major users of internet,
hence; L’Oreal needs to design their promotional activities in such a manner through which
organization could take the adequate amount of benefit. Website of L’Oreal also provides the
facility of online shopping to the customers. This facility is quite convent for the people but this
should be used in an appropriate manner because it has various negative impacts over the
organizational goodwill. While delivering the goods to the consumers through electronic
medium, organization needs to concentrate on certain things such as quality of the product,
quantity promised, etc. Organization needs to show their integrity level at this point because a

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small mistake could result in the declining demand for the organizational products (Northcott &
Ma'amora Taulapapa, 2012).
As per Kim & Niehm (2009), organizations using website as the promotional strategy needs to
concentrate on various terms such as integrity, prosperity, goodwill, assurance, etc. The basic
meaning of these terms are that customers should get the same quality which was promised to
him while placing order over the website of the organization, the same type of products should
be delivered which was selected by him, after delivery of the product, if consumer is not feeling
the expected satisfaction level from the consumption of the desired product and he wants to
return the same to the organization with a feedback, that facility should be provided to the
consumers to gain the positive response from the consumer’s end and the feedback given by him
should be taken on the priority basis and necessary changes should be done if required in order to
satisfy the consumer’s demands. In recent year, technologies have changed the method of
promotion and now most of the organizations prefer the digital mediums for promoting their
products in the domestic as well in international market over the traditional mediums of
promotional techniques (Xia, et. al., 2010). The same has been adopted by the L’Oreal Company
and their website promotional technique has been proved as the most effective technique which
has enhanced the customer engagement level (Stranieri, Baldi & Banterle, 2010).
Website as customer engagement tool in L’Oreal
According to Karayanni & Baltas (2017), internet has been proved as the revolutionary technique
for the organizations in these days because this is the technique through which organization
could share the information in relevance with their products, features, etc. with this medium i.e.
it has been the effective communication technique which promotes the customer engagement in

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the organizational performance. Interaction of the company and the consumers has been
increased while it has also been noticed that consumers can be updated on daily basis with this
technology. Outcomes generated from the usage of website could also be determined on the daily
basis such as number of users visited on the company’s websites in a day; number of orders
received in day, etc. is some of the measurement techniques through which organization could
analyse the effectiveness of the website (Salunke, Weerawardena & McColl-Kennedy, 2013).
Digital medium techniques provide immediate results to the company while traditional
techniques are bit time consuming in the result orientation procedure. Usage of the website in the
customer engagement process could generate result positive outcomes for the organisation in
various ways such as it enhances the interaction from the consumers, it enhances the demand for
the products, customer relationship between the customers and the organization also builds up,
organizational costs also gets reduced. For instance, L’Oreal is a cosmetic product manufacturing
company and to showcase their products and their features, they need to spend a huge amount
over the catalogues, magazines, etc. and it also leads to wastages of paper which is unethical
activity from the perception of environment. But after introduction of the website in the
promotional campaign, it has been noticed that organization has reduced their various cost such
as printing of catalogues. Now, these catalogues could be developed through digital mediums
and they could be showcased on the websites of the organisation. Regular basis amendments
could also be done in those catalogues in order to update the features of the products, offers,
discount information on certain products, etc. (Jenkin, et. al., 2014).

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Recommendations
It has been recommended that L’Oreal needs to modify their website to make it more attractive
in order to gain positive outcomes for the organisation. A website is the most crucial element of
enhancing the customer engagement towards the organization; it should be maintained on the
regular basis in order to make the customer's interest towards the organization. Apart from this,
L'Oreal Company could also tie up with various online shopping websites in order to enhance
their sales and the demand for their products. This will enhance the number of platforms for
consumers to buy the product from. Amazon is the top rated online shopping company engaged
in the B2B type of business organizations. Tie up with this company will generate positive
outcomes for the organization such as enhancement in the demand for the product, opportunities
of growth and expansion in the international market will also be increased for the organization.

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Conclusion
From the aforesaid discussion, it can be concluded that L’Oreal is the top rated company
engaged in the production of cosmetic products in the global market. They have various ranges
of products and they have segregated their audience on that basis. Under this report, their
strategies used for engaging the customers’ participation in the organization were covered. To
analyse the same, the first phase of the report has covered the analysis of the customer
engagement through various mediums, digital medium used by the organization to promote the
customer engagement were also covered under this report. In the next phase of the report,
application and the justification of the customer engagement theories were covered to analyse the
appropriate medium for the organization in terms of enhancing the demand for their products and
the revenues in the global market. Recommendations were also given in regards to improve the
customer enjoyment strategies of the company in order to attain the desired goals and the
objectives of the organization.

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