Digital Marketing Strategies and Analysis for L'Oreal: A Report

This report provides a comprehensive analysis of L'Oreal's digital marketing efforts. It begins with an introduction defining digital marketing and its relevance to L'Oreal, a global beauty care company. The report then delves into Task 1, evaluating L'Oreal's digital presence, examining the digital environment, and conducting an environmental analysis using PEST factors (Social, Technological, Economic, Political/Legal). Task 2 assesses key digital tools, platforms, and channels utilized by L'Oreal, comparing digital presence with store presence and highlighting the use of social media marketing, display advertising, and e-commerce. Task 3 focuses on developing a digital marketing plan, including a multichannel marketing strategy tailored for both L'Oreal's Luxury and Active Cosmetic divisions, outlining target customers, price sensitivity, and channel usage such as SEO, PPC, social media, and email marketing. Finally, the report concludes by evaluating methods used to monitor and measure the effectiveness of digital marketing strategies. The report emphasizes L'Oreal's adaptation to digital technologies and the importance of a strong online presence in the competitive cosmetic industry.

DIGITAL MARKETING

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Digital marketing at L'Oreal........................................................................................................1
TASK 2............................................................................................................................................3
Key digital tool, platform and channel........................................................................................3
TASK 3............................................................................................................................................5
Digital marketing plan.................................................................................................................5
TASK 4............................................................................................................................................7
Methods used to evaluate, monitor and measure the effectiveness of digital marketing............7
Conclusion.......................................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
Digital marketing is defined by any form of marketing products or services that involves
electronic devices. The study aims to evaluate digital marketing presence and the digital
environment at L'Oreal. L'Oreal Paris is a total beauty care company that combines the latest in
technology with the highest quality for the consumers. It is headquartered in Clichy, Hauts-de-
Seine and the registered office is located in Paris. The study will analyse impact of digital
environment by focusing on the opportunities and challenges. Study will also provide a critical
assessment of L'Oreal business by comparing between digital presence and store presence.
Additional, a digital marketing plan will be develop for organising DM activities and build
multi-channel capabilities of its division. Lastly, based on the plan, it will evaluate some
methods that will use to monitor effectiveness of DM.
TASK 1
Digital marketing at L'Oreal
The digital environment
Digital marketing is mainly concern with marketing the services and products of the
organisation using digital technologies, generally using Internet and furthermore, it also includes
mobile phones, display advertising and many more digital medium (Armstrong and et. al., 2015).
Digital landscape refers to the collection or system of man- created spaces in the digital world.
L'Oreal build their own online world that is used to create new people, interact with them, etc.
The worldwide cosmetic, skincare and beauty industries are changing the way of doing
their business. Digital technology is emerging very rapidly and with the rapid growth it comes
with many opportunities and challenges for L'Oreal by digital environment (Buchanan and et. al.,
2018).
Environmental analysis of L'Oreal digital presence
Environmental analysis is the process to identify all the external and internal elements
that can affect digital environment of the organisation (Chaffey and Ellis-Chadwick, 2019). The
presence of the company on online are greatly affect by the environment. It is beneficial for the
company to access the services and products of the cosmetic industry through internet. It
provides opportunities and company also can face some challenges. Mainly the digital marketing
environment of the company is composed of two parts; The macro environment called remote
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environment and the micro environment called operating environment (De Pelsmacker and et.
al., 2018).
Macro environment
PEST analysis allows digital marketers to plan ahead as it analyses 4 key influences on
the products, services and organisation as whole in the digital environment.
Social- Social environment is an important aspect in the way L'Oreal transformed their
business in online market. It involves consumer's belief, values, behaviour of response. The
opportunity it gave to the company is that, they can understand what consumers are preferring
from online businesses (de Ruyter and et. al., 2018). It is also challenging for the business if
consumers preferences change rapidly with all the new technologies. It gives opportunity to
target the consumers by segmenting them depends on their digital presence.
Technological- Digital marketing is based on technologies as all the activities are
depends on the technological devises (Järvinen and Karjaluoto, 2015). Company have
appropriate online presence and is active in developing new technologies that allow them and
give them opportunities to being engaged with its potential customers, provide them quality
online services, etc. When it comes to the digital environment, a major challenge for the
company is that it constant need for adaption in coherence to the change of technology and
services. If L'Oreal not being able to adapt the trends and changes it makes negative affect on the
digital presence of the company as it can lead the industry to poor choices and missed
opportunities (Kannan, 2017). It is essential for the company to understand the best social media
tool to their full potential.
Economic- This differ from one to another. L'Oreal is an international firm and have
online presence all over the world that affect the company's digital environment competing in the
market. Knowledge of economic factor gives opportunity to the industry in prosperity of
succeeding in the online market. Schemes and incentives have been made available in an attempt
that enhance internet availability and access. From country's economic level to customer's
economic level decides the success and growth of the company on digital platform (Rohm and et.
al., 2019).
Political and legal- Under this factor many laws and regulations fall that can affect the
online presence of the company. The political factors affect digital marketing activities such as
collection, storage and usage of consumer's personal information (Ryan, 2016). The legal factor
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give opportunity to build trust of the consumers in their protection that enhance the engagement
of online buyer. The online advertising laws and digital channels can differ from country to
country that can negatively affect the presence of L'Oreal and force them to change their manner
of operating digitally (Stephen, 2016).
Micro environment
 Consumers are major part of any organisational activity, growth and success. Their
behaviour of using internet and getting services and products from L'Oreal can effect the
rate of online presence of the company it also includes; level of consumer use digital
platform, their service expectations from the online services of the industry (Taiminen
and Karjaluoto, 2015).
 On which level supplier of the company adopts technology can affect the company's
digital marketing strategy.
Opportunities, challenges and impact of digital environment on the cosmetic industry
Digital environment gives a platform to the cosmetic companies to expand their
businesses throughout the world without any need of the presence of physical store (Todor,
2016). Digital environment is beneficial to L'Oreal to grab a wide market of consumer segment
in an easy manner. Also, it is beneficial for the company to access the services and products of
the cosmetic industry through internet (Armstrong and et. al., 2015). It also gives opportunity to
industries to understand where the improvement is needed as digital environment allow two way
communication between consumers and the organisation. Along with it, it also forces the
companies to face many challenges, two way feedbacks and reviews make more pressure on the
cosmetic industries. It is also results in negative publicity that can affect the brand image.
TASK 2
Key digital tool, platform and channel
L'Oreal is an international cosmetic company and is very active in developing strong
digital platforms as well as it has attractive store presence (Chaffey and Ellis-Chadwick, 2019). It
is known for their continuous innovation in order to improve their services and products they
have to offer to its consumer whether from online store or physical store. It has presence in 150
countries and a portfolio of 34 complementary brands ranging from consumer collection to
luxury products.
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Digital presence and store presence using digital tools
For L'Oreal, digital marketing is a relatively new area, yet it has realised that
digitalisation is crucial aspect in its success (de Ruyter and et. al., 2018). Consequently, in 2014
it increased its spending on digital media by 15.7% from 2013. L'Oreal has one of the largest
social media presence of any brand around the world and currently the company have 25 social
media profiles (Järvinen and Karjaluoto, 2015). Company have appropriate online presence and
is active in developing new technologies that allow them and give them opportunities to being
engaged with its potential customers, provide them quality online services, etc. L'Oreal has gone
digital by growing its e-commerce sales, positioning the brand with an active presence on social
media and build online relationship with their consumers. Different digital tools, channels and
platforms used by the company in its digital presence are; social media marketing, display
advertising (De Pelsmacker and et. al., 2018).
In 2017, the Group's online sales calculated as €2.1 billion. Its digital up-skilling program
has trained over 15000 employees in the skills they need in the new digital environment.
In the store presence with digital innovation in brick and mortar retailing stores are
changing direction of L'Oreal. Many technological advancements are done by the company in
their store to provide an unbeatable customer experience (Stephen, 2016). The technology is
being used effectively. For example; in many of the stores they used display advertising by
assembling LED TV screens and use it as digital wall posters and they also implement retail
animation with their products to develop interest of customers (L'Oreal Performance, 2019).
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Illustration 1: Digital presence of L'Oreal
(Source: L'Oreal Performance. 2019)

L'Oreal change the definition of traditional retailing by implementing various tools and
digital channel. They introduce an app that is mainly operates in the mobile phones and targeting
the camera used by girls and women (Chaffey and Ellis-Chadwick, 2019). The strategy they used
here is that the one click products applied on the face is a full range of L'Oreal cosmetics to their
hair colour range and it also allow consumers to go through the store in one click. They allow
consumer to experience the digital era in the store that drive the sale. The digital platform is used
by the company in their product, promotion, place, presence, etc.
However, the in store presence actually serve as in and of itself, but it is limited as per the
reach to the consumer but Digital presence allow them to reach to the consumers of all around
the world. The effectiveness of advertisement can also measure by digital presence of the
company not by brick and mortar store (Järvinen and Karjaluoto, 2015).
TASK 3
Digital marketing plan
Multichannel marketing refers to the practise of interacting with consumers using
combination of both direct and indirect channels- retail stores, websites, email, phone, etc. and
enable consumers to take action in response preferably to attract them to buy organisation's
products and services (Chaffey and Ellis-Chadwick, 2019). It is the process of utilizing online
and offline marketing communication channel with the aim of targeting and engaging with
consumers.
Multi channel marketing plan for Luxury Cosmetic Division
The campaign plan of L'Oreal luxury collection mainly aims moderate to high income
consumers. Or in other words, it will target high-end clients. For the purpose organisation can
use various channels such as;
They can use TV and digital advertisement using brand ambassadors and modern
activities that shows the segment of the division. In advertisement, company can build up the
capabilities and activities that is required in the digital marketing campaigning plan (Taiminen
and Karjaluoto, 2015). The in store presence of the luxury cosmetic division should be secure
with the royal presentation that attract the mind of the customers. The name of the luxury
cosmetic division should differ from its regular range (De Pelsmacker and et. al., 2018). The
presence of the products can be in offline store as well as online store. The L'Oreal Luxe
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products are present at departmental store, cosmetic store and also on their own brand boutiques
and dedicated e-commerce websites. Catalogues are useful for providing information to the
consumers and maintain the high end profile of the product division (Chaffey and Ellis-
Chadwick, 2019).
Division- L'Oreal Luxe
Target customers- Women with the age of 18 to 35
Price sensitivity- with low price sensitivity
Channel used- Search engine optimisation, pay per click marketing, social media marketing,
email marketing.
Multi channel marketing plan for Active Cosmetic Division
The active cosmetic division is generally companies basic product range that target the
consumers are health and skin concern customers (Rohm and et. al., 2019). The active cosmetic
division brand meets a range of different skin care needs from normal to blemish, acne-proned in
health care outlets worldwide including, pharmacies, medi-spas and drugstores. This division of
the company can use social media marketing and affiliate with other online channels that
generate interest in consumer can all the segment can reach up to there. Along with it, the
product division can be display at the offline store with the different section of skin care
products. The product also can display at dermacenters as it is dermatology approved and make
more effect if market by this. The strategy make more effect than put the products in their own
stores. For advertisement they can make use of skin doctors saying good things about the range.
Division name- Ceva
Target consumer- Less price sensitive women
Channels- Dermacenters, online, travel retail
The segment implements a multi-channel approach and digital tools to reach a wider
client base. The concept of health combined with beauty is an attractive one which L'Oreal
effectively can sells through channels (Taiminen and Karjaluoto, 2015).
TASK 4
Methods used to evaluate, monitor and measure the effectiveness of digital marketing
After making the plan of campaign it is essential for the marketers to monitor the
campaigns that are they effective or not and on which level it reaches to the customers. Digital
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technology is emerging very rapidly and with the rapid growth it comes with many opportunities
and challenges for L'Oreal by digital environment and it is essential to measure them properly
that help the company to understand its success or failure. For measuring the effectiveness of
both the campaigns;
Google analytics
This is by far the most effective analytical tool in the digital marketing area. It allows the
organisation to analyse the pay per click and social media marketing (Järvinen and Karjaluoto,
2015). It is recommended to the organisation to custom dashboard that is helpful in driving
digital marketing performance.
Revenue/Profit
The analysis of revenues and profits allow organisation to measure that how many
products are sale through online and offline store. The sale should be of online website and
offline store that give a general knowledge about the effectiveness of the campaigns. It is the
easiest way of analysing the effectiveness (Järvinen and Karjaluoto, 2015).
Website traffic tool
Online presence of and the traffic on the site of brand campaigning can be monitor by
measuring website traffic. The traffic allow analysing the page views per visit. As well as the
review and feedbacks also help organisation to understand how much of traffic is there on the
website.
Conclusion
From the above study it has been evaluated that digital marketing is changing the way of
doing business by L'Oreal. Company effectively transform the brick and mortar store in digital
presence and with the time they come at the world's highest position in the digital presence in
cosmetic industry. The study has been analysed that the environment can affect the digital
presence of company and can affect their digital environment. Digital environment have
opportunities and challenges that can affect the cosmetic industry.
It also has been evaluated that there are various kind of digital, tools, channels are used
by the company to maintain their in-store presence and digital presence as well. The division of
L'Oreal uses the digital activities by building multi-channel approaches.
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REFERENCES
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agenda. Australasian Marketing Journal (AMJ).
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Kannan, P. K., 2017. Digital marketing: A framework, review and research agenda. International
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Rohm, A. J. and et. al., 2019. Time for a marketing curriculum overhaul: Developing a digital-
first approach. Journal of Marketing Education, p.0273475318798086.
Ryan, D., 2016. Understanding digital marketing: marketing strategies for engaging the digital
generation. Kogan Page Publishers.
Stephen, A. T., 2016. The role of digital and social media marketing in consumer
behavior. Current Opinion in Psychology. 10. pp.17-21.
Taiminen, H. M. and Karjaluoto, H., 2015. The usage of digital marketing channels in
SMEs. Journal of Small Business and Enterprise Development. 22(4). pp.633-651.
Todor, R. D., 2016. Blending traditional and digital marketing. Bulletin of the Transilvania
University of Brasov. Economic Sciences. Series V. 9(1). p.51.
Online
L'Oreal Performance. 2019. [Online]. Available Through:<https://unmetric.com/brands/loreal>.
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