Digital Marketing Strategies for L'Oreal: A Detailed Report

This report provides a comprehensive analysis of L'Oreal's digital marketing strategies, examining the challenges and opportunities within the cosmetic industry. It delves into the impact of the digital environment, comparing and contrasting L'Oreal's digital presence with its physical store presence. The report identifies key digital platforms, channels, and tools utilized by the company, and proposes a plan for organizing digital marketing actions to build multi-channel capabilities. Furthermore, the report explores various approaches to effectively measure, monitor, and evaluate the effectiveness of L'Oreal's digital marketing initiatives, offering valuable insights into the company's overall marketing performance. The report is structured to provide a clear understanding of L'Oreal's digital marketing landscape, its strengths, weaknesses, and future strategies.

DIGITAL MARKETING

Table of Contents
INTRODUCTION.....................................................................................................................................3
TASK 1.......................................................................................................................................................3
Challenges, opportunities and impact of digital environment for cosmetic industry................................3
TASK 2.......................................................................................................................................................6
Digital platforms, channels, and tools used by company, comparing and contrasting digital versus store
presence...................................................................................................................................................6
TASK 3.......................................................................................................................................................7
Plan for organizing digital marketing actions and build multi-channel abilities......................................7
TASK 4.....................................................................................................................................................11
Approaches to measure, monitor and evaluate digital marketing effectiveness.....................................11
CONCLUSION........................................................................................................................................11
REFERENCES........................................................................................................................................13

INTRODUCTION
Digital marketing is the element of promotion that used internet based digital
technologies such as digital platforms, media, mobile phones and smartphones to promote
services and range of products. Via using digital technologies such as internet any company can
promote their goods within marketplace in order to increase sales and consumer base.
The current report is based on L’Oreal, is a French personal care firm in Clichy, with
registered office in Paris. It is one of the world’s biggest cosmetic organization and has operated
activities in area focusing on hair care & color, skin care, make-up and perfume.
Environmental analysis for company digital presence will be discussed in this study, it
also explain challenges, opportunities and impact digital environment for cosmetics sector. In
this report, the comparison between digital versus store presence of firm defined. It clarified plan
created for organizing digital marketing activities in context of chosen company. Furthermore,
this study justified key methods will use to monitor, measure and evaluate the effectiveness of
digital marketing.
TASK 1
Challenges, opportunities and impact of digital environment for cosmetic industry
Digital marketing of one of the most essential and useful tool, with this element
promotion of L’Oreal company products become very easy (Chester and Montgomery, 2017). It
is the advertisement of goods or brand utilize different forms of electronic media and
technologies. It matter a lot for firm, consumers have access to info at any place and any time.
They are uncovered to what brand says about itself and also what the whole world says about
company. It can be said that digital marketing is a form of interaction or communication between
consumers and companies through the best digital channels such as email, and technologies as
well.

Digital landscape is the collective name for social networks, video, mobile devices and
websites. It constantly evolve state of advertising and digital media including, pay per click
promotion, content marketing, email advertising, web development and podcasting. In simple
words, digital landscape is a system or collection of man created and developed space in digital
world, its aim is to permit individual to create their own landscape, and a completed removal
from every day.
Here, environmental analysis in context of L’Oreal Company conducted in order to
identify challenges and opportunities and likely impact of digital environment on cosmetic
industry.
Opportunities of digital marketing for cosmetic sector-
Understanding in developing effective digital activities-
Digital marketing provide many benefits to every industry, it give an opportunity for
cosmetic sector to comprehend development of effective and the best digital activities
(Buchanan, Kelly and Yeatman, 2017). With the help of understanding the most important digital
activities organizations under this sector will build their brand position in marketplace
effectively. It also give chance to reach at target marketplace and gain their attention as well. By
using different tools and digital technologies with the proper understanding of overall procedure,
it is easy for cosmetic industry to attract potential consumers towards purchasing range of skin
care and cosmetic products.
Consumer insights-
Digital marketing it beneficial in every aspects of business, it give an opportunity to
obtain information relate to consumer needs and preferences. With the help of collected data and
info about potential target market, cosmetic sector produce products in which people shows their
interest and like to purchase. In context of business, consumers insights is really very essential
because it help to increase profitability and support while taking decision related to production
and marketing activities.
Rise of online customer power-

Along with the above two, it is the third opportunity of digital marketing for cosmetic
sector which they can grab in order to increase profit margin and productivity rather than before
(Cheung and et.al., 2019). This is one of the most essential and effective opportunity for sector
that enables them to gain attention of consumers, because people in recent time are using number
of digital channels and technologies for different reasons such as to gather information related to
goods or services. By using social media sites and other platform cosmetic sector spread
information about their goods in market, where millions of people are available seeking for
something new and different.
Challenges for cosmetic industry-
Negative publicity-
Along with the opportunities of digital marketing, cosmetic sector will face challenges
while using it, that directly impact on their selling strategies and activities as well. Negative
comments of people for products and services on social media sites such as Facebook, bring
challenge for cosmetic sector to gain attention of new consumers, because negative reviews
make changes in perspective of other people and directly affect buying behavior of clients.
Meeting consumer expectations in digital age-
Expectations of customers changed according to trend, it create one of the biggest
challenges for cosmetic sector to meet with those expectations in effective manner. It require a
lot of time and efforts for finding and identify customers’ expectations towards business, that
impact on production procedure negatively. It is very hard to meet expectations of people in this
digital world as it get changed over and over again (Fan, 2019).
Limited customer links and conversation-
As mention above, digital marketing is totally and highly dependent on internet, so
cosmetic sector may find it difficult to make marketing more comprehensive and begin a
conversation with target clients about brand products and image.
Impact the digital environment for cosmetic sector-
Digital environment impact positively on chosen industry, it bring many benefits for
cosmetic industry. It refer to integrated communication environments where in digital, electronic

and wireless devices represent as methods that communicate and manage activities and content
within themselves. It impact in positive side, digital environment provide opportunity and
benefits to cosmetic sector, as they can use new technologies and digital platforms in business, to
create brand position and its promotion as well (Kumar and Singh, 2020).
TASK 2
Digital platforms, channels, and tools used by company, comparing and contrasting digital
versus store presence
Different types of digital marketing tools, platforms and channels are accessible within
market utilize by many people for commercial and non- commercial reasons in their lives. For
example, social media is a digital channel, used by many companies to promote their products
and services within marketplace that help to gain attention of new consumers and support to
retain existing clients with business for longer period of time. Facebook, Twitter and YouTube
are digital platforms where L’Oreal can promote their business and range of cosmetic products in
effective and systematic manner, which is quite beneficial for them. Internet and digital channels
generate revenue of company rather than before when firm used it (Suresh, Chitra and Maran,
2016).
Comparison between stores presence versus digital presence of company-
L’Oreal established their store presence in all over the world, its outlets is present in 130
nations on five continents. To be as close to their target market and potential consumers as
possible, company established in all major geographical areas. As compare to their digital
presence, store presence of organization is much effective. The world leader in beauty, this firm
is recent present in many countries. In each continent, team develops and creates cosmetic
products adapted to infinite diversity of their customers. With a portfolio of global brands that is
different in the world, company want to cater the best in cosmetics to men and women around
the world. Many people prefer to choose cosmetic goods such as lipsticks, eye liner and other
products from outlets instead of online applications because it does not provide a proper
satisfaction (Dörner, 2019). Their leadership is founded on the capability of its group to develop
and create innovative goods that combine quality and safety in every branch of cosmetic at store,
such as skin care, perfume and hair color. L’Oreal have stores and offer Luxe goods to its
consumers that are available at department stores and within their own outlets. The store

presence of firm is stronger as compare to digital presence because consumers prefer and like to
purchase cosmetics from outlets after testing and matching with their skin tone which is not
possible while shopping or purchasing online. 30% of annual growth and profit gained by
company from their outlets in all around the world.
On the other hand, the digital presence of L’Oreal increasing more and more because of
e-commerce and online booking growth. Company steadily grow in e-commerce channel, with
55.6%. With the help of e-commerce progress firm effectively coordinate and communicate with
their historic consumers and also with new players in marketplace. Its performance in china,
where online sales shows 26.4% of sales and in luxury segment, with brands like Kiehl’s and
Lancôme are leading growth in this new digital distribution channel. With the help of digital
presence, L’Oreal established their brand in image in all over the world. In recent time,
consumers are increasingly and effectively connecting with L’Oreal brands online, the marketing
activities of company is currently shifting towards digital world, where they adopt various kind
of tools and channels for products promotion in market which help to gain attention of customers
and increase their sales. More than 1 Billion of consumers on L’Oreal websites and 250 million
followers on social platforms, company sustain within cosmetic sector effectively. E-commerce
play vital role in its groups transformation. Customer’s enthusiasm for digital world is a valuable
and the best opportunity for company, which is a digital pioneer at every phase of value chain
(Andersen, 2019). Online consumers expect a sales experience akin to and much better than what
they find and get in stores. L’Oreal Brands are revamping their communications and marketing
to showcases their best goods and convince people via digital platforms or channels. Digital
presence of organization, transforming its business and boosting their brand power rather than
before.
TASK 3
Plan for organizing digital marketing actions and build multi-channel abilities
Here, plan is produced in context of L’Oreal for supporting and organizing their digital
marketing activities to help company initiatives of building multi channels abilities in their
luxury cosmetics in their luxury cosmetics and active cosmetics division.
Objective of company-

L’Oreal is one of the leading firm in cosmetic sector, they provide range of products to its
consumers according to need. The objective of company is to build multi-channel abilities in
their luxury as well as active cosmetic division, with the help of creating marketing plan after
analyzing the environment situations. Another objective of this firm is to increase consumer base
and provide quality products to them. As it help to generate revenue and increase profit margin
of organization rather than its competitors.
SWOT analysis-
Strength-
L’Oreal is the leading brand in beauty world, its extensive portfolio of skin, makeup and
hair goods is reason why, this company is the only one providing so many luxurious and
inexpensive beauty or cosmetic options to people (Caberlotto and et.al., 2019). With strong
digital presence in the world, L’Oreal survive for longer period and gain competitive benefits.
Where other firms gave a goods line focusing on personal care and cosmetics, L’Oreal is
completely concentrating ion beauty products, which is the purpose for phenomenal success of
business in this industry. The strength of this organization, is to their online and offline presence
with great consumers services which make customers able to purchase different types of goods.
Weakness-
Handling and managing big operations of business is always difficult and fraught with
issues and problems and it is a similar case in L’Oreal Company (Istanbulluoglu, 2017). This
organization is known to be bulky and slow in nature because of several sub division it has. They
cannot be able to handle the sub divisions of products in effective manner that impact on its
growth and brand image within marketplace.
Opportunity-
The growth of e-commerce is one of the best opportunity for L’Oreal that they can use in
order to sustain for longer within marketplace (Kaur and Gupta, 2019). People demand for
organic cosmetics products, by utilizing e-commerce within business Structure Company can
provide goods according to the needs of their clients.
Threat-

With constant updating being demanded in beauty or cosmetic sector, keeping up with
period is ultimately difficult, it possess threat for L’Oreal company which affect its consumers
base and profit margin negatively. It is impossible to keep everyone happy and satisfy at one and
that seems to be challenge (Bom and et.al., 2019).
Strategy-
With effective and right strategy, company can achieve their aims and set objectives in
systematic manner. L’Oreal can adopt and implement different types of strategies to achieve
their goals, they can chose among list of many such as cost leadership, focus and differentiation.
L’Oreal can implement differentiation strategy in order to build multi-channel abilities in their
luxury cosmetic division. With this strategy, they can be unique in its sector along some
dimensions that are mostly and totally valued by its target market. Furthermore, L’Oreal can use
programmatic marketing strategy to build different channel capabilities in its active cosmetic
division. This strategy is automated bidding on marketing goods. It is beneficial for company as
seen as the future of promotion activities on web, with Google targeting around 60% of digital
marketing budgets spend on programmatic.
Tactics-
Product-
L’Oreal focus on production activities more than the other operations and functions of its
business in order to satisfy the needs of consumers (Lamberton and Stephen, 2016). All their
goods pass international standards of testing and they are safe for everyone.
Price-
The largest revenue earner for company is goods related to active cosmetics and
customers division. L’Oreal set accordable price for every product which make purchasing easier
for consumers (Goxe and Pires, 2019). Luxury division cosmetic goods are accessible at any
cosmetic stores and salons as they are not priced very high. These products have a premium price
ad people are even ready to pay best for these goods owing to reliability and quality over
business competitors.
Place-

L’Oreal had research and development centers in 6 placed worldwide like China, France
US etc. and their goods are accessible in 100 and 30 nations. With the help of establishing their
outlets company offer range of beauty goods according to the expectations and demand of
consumers. Its several goods are found in different store like hair salons, beauty outlets and
perfumeries. With the help of number of supplier’s organization cater items in effective manner
and gain attention of people rather than its competitors.
Promotion-
To achieve objective of company that is related to marketing for their products,
organization can chose the best advertising and promotional strategy. For advertising their goods,
L’Oreal used the face of popular celebrity such as Katrina Kaif, because they had number of
fans. With the help of this strategy organization can gain the attention of these fans that increase
its sales rather than before. Along with it, company can used digital advertisements and print
media tools to promote cosmetic goods in marketplace.
People-
The role played by workers is very important in context of marketing and business
because they are able to produce according to market needs and expectations. Company hire
skilled applicants and also create training programs for new as well as current employees which
make them able to offer the best goods to consumers.
Procedures-
The marketing procedure of company included with salons endorsing their goods, retailer
stocking it and now online selling. 94 percent of research and development procedure of firm are
now shifted towards non animals and non-humans tested before organization launched in target
market.
Physical evidence-
L’Oreal show their presence via using Billboards and their websites where consumers
identify its existence in the world and drive towards purchasing products.
Action-

The right action undertaken by company will help to achieve their objectives. L’Oreal
focus on needs of consumers and conduct research for determining it in effective manner. They
can hire skilled applicants with skills and knowledge they can use while creating marketing and
collecting information.
Control-
By using KPI and benchmarking, L’Oreal can monitor their performance and business
growth, and then control is systematically. With the help of developing their websites company
can maintain and control marketing activities.
TASK 4
Approaches to measure, monitor and evaluate digital marketing effectiveness
Benchmarking is one of the most effective and useful tools can be utilize by L’Oreal in
order to compare and monitor their digital marketing activities to competitors and best actions
from other firms. It help to compare marketing procedure, performances and practices against
other areas of business. It is the procedure for getting a measure and evaluation, it is not just a
way of making research or inquires to other organizations and documenting another firm process.
While making use of this tool, organization cannot limit scope to their own sector.
Another method can use by L’Oreal company for monitoring and evaluating their digital
marketing effectiveness is website research. Management can check its websites where people
give positive or negative review about their goods which help to known how many consumers
are interested in organization.
Annual report is the best way to measure marketing effectiveness because it directly
impact on profitability and revenue of L’Oreal business. It help to determine how effectively
marketing plan gain tariff and increase sales more than past few years. Firm review their annual
growth and profit margin regularly or once in 6 month because it help to monitor performance
and productivity via marketing activities.
CONCLUSION
From above analysis, it has been concluded that L’Oreal build their brand image and
position in marketplace with the help of their marketing activities via using digital marketing

tools and channels. Digital marketing has emerged as buzz term in last half years, with the help
of e-commerce growth company get many opportunities as it help to increase consumer and
sales. By developing their website organization promote their products and drive customers
towards buying it. Furthermore, it has been summarized that firm organize their digital
marketing activities and build multi-channel abilities in company by conducting situation
analysis undertaken in plan which they produce. Company chose above methods in effective
manner for measuring and monitoring their digital marketing effectiveness.

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