Digital Marketing Channels and Strategies for L'Oreal - Report

This report provides a comprehensive analysis of L'Oreal's digital marketing strategies. It begins with an introduction to digital marketing and its various channels, including direct-to-consumer, retailer, wholesaler, and agent-based approaches, and their roles in serving communication objectives. The report then delves into communication objectives, emphasizing situation analysis, objective definition, audience identification, media channel selection, timetable establishment, and result evaluation. It justifies the selection of communication channels like television, email, and social media, highlighting their effectiveness in reaching target audiences. The core of the report outlines the marketing planning process, setting aims, objectives (such as lead generation and sales increase), and providing an executive summary of L'Oreal's digital leadership. Finally, the report explores measurement techniques and metrics used to assess performance and guide future actions within L'Oreal's digital marketing efforts.

Digital Marketing

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Different types of marketing channels and serving communication objectives .........................1
TASK 2............................................................................................................................................3
Communication objectives ..........................................................................................................3
Justification on communication channel .....................................................................................4
TASK 3............................................................................................................................................5
Marketing Planning Process........................................................................................................5
TASK 4..........................................................................................................................................11
Measurement techniques ...........................................................................................................11
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Digital marketing is the term that is used for selling product and services with the help of
digital technology that includes social media, email, websites etc (Taiminen and Karjaluoto,
2015). There are different methods that will be used such as content marketing, automation
content, data driven marketing and email - marketing. It is also having different channels that
help in promoting product and services into the marketplace. This help in covering larger part in
the country and facilitate in providing
Present study will be based upon L'Oreal company. It is a French based company that
deals in hair colour, skin care, sun protection, perfumes etc. It was founded by Eugene Schueller
in 1909 and its headquarter is located at Clichy, France.
Report will include different marketing channels that help in serving communication in
an organization (Levy and Gvili, 2015). It also emphasized on objectives of communication that
will be used for gaining more opportunities in the future. It mainly emphasized on marketing
plan that help in meeting communication objective Furthermore, it also include techniques and
metrics that will be used for measuring performance and actions taken to improve performance
in digital marketing.
TASK 1
Different types of marketing channels and serving communication objectives
Marketing channel is the activity that take help in transferring of ownership of goods
from its manufacturing of product to its end consumption of product and services different
channels are involving for transferring information (Key, 2017). There are different channels of
marketing that include customer, retailer, wholesaler, distributor that is providing different
perspective for the future.
From manufacturer to customer:- In this channel product and services is directly provided to
consumer without using any other different channel that will be provided for gaining various
perspective for the future. Products are directly sold to consumers without any involvement of
other people in selling product and services to people. For example: L'Oreal is providing its
product to consumers that will be helpful for the future. These channels help in providing various
product and services in the marketplace. It is important in selling product and services that help
in developing marketing strategies that will be beneficial in selling product through different
channels.
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From manufacturer to retailer to consumer:- This channel consist of three segments as
product is manufactured and then it passes to retailer for further selling of product and services
that will be helpful for continuing business for the future. This channel mainly emphasize on
retailer as it is mediator between manufacturer and consumer that help in transferring product to
end users. For example:- In L'Oreal firstly product is manufactured in the company then it will
be sold to retailer for further transfer of goods and services to consumers and enhancing various
perspective in channelising product at different ways that will be adopted by the company. It is
important in analysing various ways that will be used for promoting product into the market.
From manufacturer to wholesaler to consumer:- This is another channel that is emphasized
on selling product through different channels that are involved in selling product to consumers.
In this consumer buy product from wholesaler directly as there is no mediator between them to
exchange product. As in L'Oreal product is being sold to consumer through various channels
while this mainly emphasize on providing best quality goods and services to them. This help in
analysing various aspect that lead to create different changes in transferring product from one
segment to another (Karjaluoto, Ulkuniemi and Mustonen, 2015). This mainly emphasize on
providing different aspect that will be creating changes in providing product to consumers.
Marketing is providing different segment that will create different strategies in making product
quality based and enhancing growth for the future.
From manufacturer to agent to wholesaler to retailer to customer:- This is the biggest
channel that help in providing product and services to customers. In this customer will get
product from retailer as these include various mediator in between this chain in providing goods
on time and emphasizing in creating different ways for the future. As agent receive commission
from manufacturer for selling product to its end users. This will be emphasizing in bringing
different approaches that lead to create various perspective in the future.
These channels help in serving communication objective of L'Oreal as by enhancing
smooth communication between employees that are working in the company. It is an important
concept of enhancing communication as in these channels that are many people involved that
will be providing changes in creating these aspect for gaining more knowledge regarding
availability of product into the market (Stephen, 2016). Through these channels communication
will be emphasized as different people are talking to each other that enhance productivity in the
future.
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TASK 2
Communication objectives
These objectives involve different aspect are as under:
Performing situation analysis:- This is the first step in creating objectives for L'Oreal as
analysing ways that help in increasing communication and providing different segments that
will be useful for the future (Ryan, 2016). By setting objectives that enhance changes in business
for the future. Based on the situation communication will be improved as by focusing on group
that are used for conducting surveys in business. Talking to other departments that is providing
different aspect in achieving business success by communication in the L'Oreal.
Defining objectives:- After analysing situation in business objectives will be set up for
enhancing communication objectives in the company. This is providing different results from
analysis that is being done for achieving SMART objectives
Defining audiences:- This enhance in providing information to consumers that will be suitable
for them in the future. As it is having key audiences that include clients, educators, media and
different changes that will be occurred in business in gaining various perspective for the future.
Identifying media channels:- In this different channels is being identified through which
various perspective will be taken into consideration for ensuring different aspect in the future and
targeting audiences for allowing various channels in business.
Establishing a timetable:- In this proper schedule is being maintained for achieving objectives
in L'Oreal for obtaining results for the future. Based on different approach this will be evaluated
and enhancing changes in business operations.
Evaluating results:- This is the last step that help in providing different aspect as it is essential
in determining results that help in bringing out changes in performance of business. Different
reports will be made that is providing different aspect in gaining changes in business operations.
Therefore, in L'Oreal various concept will be applied into business for enhancing
communication and productivity that lead to bring effectiveness and efficiency in doing work.
For enhancing changes and utilizing various perspective that lead to bring changes in the
company (Kannan, 2017). Communication is the important concept that help in evaluating
performance of employees as it provide changes in bringing up for getting more involved into
business. It is important in involving changes into business through communication that lead to
bring effectiveness and efficiency in charging various approaches that lead to create different
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aspect in business. Communication can be enhanced by evaluating performance among
employees that will be creating changes as they are offering purpose that will be included in
business. L'Oreal is a brand that emphasize on providing quality product to its customers so for
that it is providing supply chain management will be increased and enhance production for the
future. Communication objective can be achieved while setting up new business and carrying out
operations of business (Harrison and Hair, 2017). It help in changing business operations that
create changes and evaluating that involve in providing different changes in business thus
dealing in business operations for making effective communication activity for gaining more
opportunities and providing various aspect that bringing out communication objective in
business. Thus, bringing effective challenges for business while communicating with each other
that create differences for the future.
Justification on communication channel
There are different communication channels that will be adopted by L'Oreal as television,
email, newspapers, magazines etc. that help in enhancing various perspective for the future.
There are different webpages through which marketing can be done by evaluating various
perspective for the future. These channels help in providing various perspective that lead to
create changes in the company's operation. Through social media marketing will be emphasized
more as almost of the consumers are using this channel so through it they are knowing easily
about availability of brand in the product. It is important that using different channels help in
gathering larger market share of business. These channels help in providing different aspect that
create changes in business operations and enhance productivity as well as profitability in L'Oreal.
Through communication channels goals and objectives of business can be achieved and
enhance problem for involving clients with customers and knowing about products and services
that will be involved for the future (Symons and et.al., 2019). All these concept are important for
providing different changes in business. It is essential segment that help in creating different
channels that will be helpful in providing changes and utilizing proper resources through
communication and channelizing different sources in L'Oreal. Main target of communication
channel is to targeting audience and providing different aspect for marketing. Channels of
marketing are the medium that makes it diversified in bringing out changes for the future. It is
important in gaining different perspective that help in utilizing effective use of resources in
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business. Doing marketing through digital technology will help in enhancing communication
among employees and bringing effectiveness in providing channels of communication.
These channels help in providing various aspect that create effective use of resources in
business. It is important in providing different aspect that help in creating changes for business.
It is important in providing different aspect that is useful for the future. It is important in gaining
different aspect that will be creating segments and analysing different concept in providing
changes for the future. It is important for using different marketing channels that is useful for the
future purpose in L'Oreal. Target audience help in providing different perspective that will be
able to provide various segment into changes that will help in providing changes in business. It is
important to note that will be helpful for providing various aspect for gaining changes in
business (Chaffey and Ellis-Chadwick, 2019). It is important in providing different changes that
will be helpful for creating changes in business perspective. There are various changes that will
be taken place for providing different changes in business. It is important for channelising
product that will be effective for the future course of action.
TASK 3
Marketing Planning Process
Aims
“To evaluate the impact of multi channels digital marketing strategy on L'Oreal business”.
Objective
To generate a potential leads through the digital marketing for the L'Oreal products.
To Increase in the sales by 20% next 2 quarters.
To have increase in 15% of return visitors by the end of the year.
To have reduction in the bounce rate.
To have the proper segmentation of the L'Oreal luxury and active division of cosmetics.
Executive Summary
L'Oreal group is exclusive group of total beauty care company that is combined with
implementation of latest technology along with effective quality in luxury beauty products.
company is totally the world renowned for its extreme beauty products (Nguyen, 2015). The
mission of the company is provide affordable luxury to customers who demand beauty
excellence in products. L'Oreal is now amplifying thew digital leadership as to gain the new
competitive edge in the market. There is constant increase in the consumers who are massively
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connecting to the company online or on the social networking sites ( Široká, 2016.). Company
marketing is moving towards digital shift by performing the fast paced, colorful and immerse
campaigns. The company is going to have the marketing mix and budget for the implementation
of the digital strategy in the product to increase the competitive advantage.
Situation Analysis
SWOT (Internal Analysis)
Strength
The company have move into the luxury
brand by offering the high quality of products
at higher budget.
The research and development of the
company is giving them competitive
advantage from its competitors. Company is
moving into the organic products as to match
the trends in market of offering complete
natural product (.Santos, Au-Yong-Oliveira,
and Branco, 2018,).
Weakness
Due to the heavy investment in research and
development department profit margins for
company is shrinking day by day. company is
facing high level of saturation in debuting more
variety of product for different category in
market. company is offering so many products.
Some of the products of the L'Oreal matte
morphose souffle lipstick, riche nutria shine
lipstick and many more.
Opportunities company has the international
access in more than 120 countries. company
has the opportunities to have creation of
products in niche consumers rather than one
specific democracy (Maury, 2018.).
The marketing of firm is moving towards the
digital shift by performing the fast paced,
colorful and immerse campaigns.
Threat.
There is rapid change in the demand of
consumers. The sudden shift in demand turned
out to be threat for company
There is countless products for L'Oreal, so the
different product are governing different
margins of profit. So there is difficulty in having
the proper cash flow of the products.
PESTLE (External Analysis)
FACTORS IMPACTS
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Political There are many political affiliation of the brand duties to the political
stability in the United Kingdom which will turn advantageous to
company. Continuous awareness in consumer conscious values, the
guidelines of the government regarding beauty and fashion industry is
having negative impact on company.
Economic Due to the immunization of beauty and cosmetic industry in
economic downturn works as the boon to the development of the
company. Continuous increase in the inflation rate of the country,
there is decline in sales of luxury products of L'Oreal as turning to be
more expensive.
Socio cultural Company is moving into the organic products as to match the
consumer consciousness about the formulation of product.
The decline in the brand loyalty of L'Oreal due to spur growth of
middle income people in the cosmetic market which is having
negative impact in development of company.
Technological The immerse dive of L'Oreal in the multi channels digital marketing
strategy had made the alignment with the digital innovation and
increasing customers (Kharub and Sharma, 2017).
The huge amount of investment in the technological development of
company leads to reduction in profit margin of company.
Legal Due to high level of competitors and to maintained the success
graph, company has obligation to fulfill all the legalities of each
region which turns into complex supply chain management for
products.
Being the product of upper end customer, there is more brand loyalty
in the market to fulfill legitimate stuff.
Environmental L'Oreal is having the competitive advantage of introducing the
organic product to the market which will bring sustainable innovation
in formulation of product.
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The use of ingredient “micro-beads” in skin care products worked for
exfoliated dead skin cell from face. But these ingredient are made of
plastic and having the horrified impact on environment.
Porter's five force (Competitive Analysis)
Forces High/low Justification
Bargaining power of supplier Low Company has the huge capacity of production
and quality. Therefore, the supplier do not have
the ability to bargain such a giant like L'Oreal.
Bargaining power of buyer. High The buyer has large number of availability in the
market because of numerous powerful
competitors like Avon, Shiseido and Procter and
Gamble. This is turn out to be threat for the
company in reduction of market share.
Threat of new entrants Low There is no tremendous risk to L'Oreal as the
participation of new entrants is low in industry.
The market already has the serious competitors as
Estee Lauder,Avon, Olay, Shiseido and Procter
and Gamble(Ismail, 2018.). It is very difficult for
any other company to have such a large
investment like L'Oreal in marketing and research
and development of the products.
Threat of substitute Low Due to the immunization of beauty and cosmetic
industry, L'Oreal is the emerging leader and have
less number of substitution in anti aging products
and threat in market.
Industry rivalry High There are various competitors such as Estee
Lauder,Avon, Olay, Shiseido and Procter and
Gamble applying different market strategies to
increase the market share with increase assistance
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of technology and innovation. company is
investing a huge amount in the quality
enhancement and development of product line.
Marketing Strategy
Particulars Strategy Justification
Segmentation Demographic
Gender- female
Age -25- 40 years
Income- more than ₤95000
per year
Company is paying more focus on
females by making appeal to the age group
of 25-40 years. At this age customer
turned out to be more loyal to brand
regarding aging issues. Company is mainly
segmenting the product as luxury one to
high income people.
Psycho graphic
Lifestyle
The lifestyle is an important part for high
income people and they turned to be brand
loyal to company.
Targeting Digital marketing strategies Company has adopted social media as to
attract new potential customers as its
fastest way to connect the youth in
market(Cunha, 2017.).
The you tube per-roll ads makes customer
identify new trend and product offered by
company in market.
Search engine will be use to have the
company related product advertisement
according to preference of customers.
1. Social media advertising
2. YouTube pre roll ads
3. search engine operation.
Positioning Unversialization of beauty Company has position the product as each
individual is different with its expectation
and needs.
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Budget
Particulars
Initial
investment 1st year 2nd year
Product L'Oreal cosmetics
L'Oreal
cosmetics
number of consumers 5400 5940
average selling cost of product 560 600
Total revenue (cash inflows) 3024000 3564000
Operating expenses
Packaging 200 250
Advertisement 6000 300 300
Machinery 4000 0 1500
Equipment 2000 700 0
Salaries 800 800
Total operating expenses (cash
outflows) 12000 2000 2850
Net cash flow -12000 3022000 3561150
Capital invested 200000
Opening balance of cash 200000 188000 3210000
Closing balance of cash 188000 3210000 6771150
Marketing Mix
MIX Justification
Product The company is offering all variety of the cosmetic products in the
market (Blair, 2017). The company has made the basic division of
the of the cosmetic products in term of the luxury cosmetic division
and the active cosmetic division.
Price There are different variety of product belonging to different
categories. So the there is no basic introduction of price to any new
product. In an average the the cost of the product in the company is
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