Environmental Analysis and Digital Marketing Strategies for L'Oreal

This report provides a comprehensive analysis of L'Oreal's digital marketing strategies. It begins with an introduction to digital marketing and its significance for large enterprises, focusing on L'Oreal as a case study. The report then conducts an environmental analysis, examining political, economic, social, technological, legal, and environmental factors influencing L'Oreal's digital presence, along with associated opportunities and challenges. A critical assessment of L'Oreal's business, comparing its store and digital presence, is also included. The report further explores the organization of digital marketing activities to support L'Oreal's multi-channel capabilities, differentiating between luxury and activity cosmetic divisions. Finally, it outlines key methods for evaluating, monitoring, and measuring the effectiveness of digital marketing initiatives. The report concludes by emphasizing the importance of digital marketing for L'Oreal's growth and success.

Digital marketing

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Environmental analysis for L'Oreal's digital presence with opportunities and challenges..........1
TASK 2............................................................................................................................................4
Critical assessment of L'Oreal's business....................................................................................4
TASK 3............................................................................................................................................5
Organising digital marketing activities to support L’oreal’s initiatives of building multi-
channel capabilities......................................................................................................................5
TASK 4............................................................................................................................................7
Key methods to evaluate, monitor and measure the digital marketing effectiveness of
recommended activity..................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Digital marketing is used by most of the companies in order to promote its products with
the help of digital technologies. It helps to enhance visibility of products, attract large number of
customers and aware prospects regarding items that are sold by business entities. Different types
of devices such as mobile phones, display advertising etc. are used for this purpose. Currently
scope of digital marketing is continuously increasing due to enhanced competition in market.
Aim of this report is to determine importance of digital marketing for large enterprises. In order
to achieve this aim the company which is selected for this assignment is L'Oreal which is French
personal care brand and operating business all around the world. It was founded in year 1909 by
Eugene Schueller.
This assignment covers various topics such as opportunities, challenges and impact of
digital environment of companies, different key digital tools, platforms, channels and the way in
which digital marketing activities are organised. Different methods of monitoring and measuring
digital marketing effectively are also discussed in this report.
TASK 1
Environmental analysis for L'Oreal's digital presence with opportunities and challenges
L'Oreal is one of the largest brand of personal care which is operating business all around
the world. Main objective of this organisation is to expand its business all around the world and
deliver best quality products to customers so that higher profit can be earned. Recently a digital
marketing head at L'Oreal is being appointed who is responsible to develop a report on digital
presence of company. For this purpose, an environmental analysis is being conducted which is
focused with opportunities and challenges that impact environment of cosmetic industry (Glowik
and Smyczek, 2012). The analysis is as follows:
Environmental analysis: It is a strategic tool which is used to analyse all the internal as
well as external elements that can affect performance of company and leave negative impact on
it. Under this analysis first of all different types of factors are analysed and afterwards
opportunities and challenges related to them are monitored. It helps managers to form strategic
decisions for future so that ways to deal with threats can be determined. L'Oreal is using various
digital technologies to promote its products online and enhance number of customers. An
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environmental analysis to monitor its digital presence is being conducted by digital manager. All
the elements that are assessed are as follows:
Political: Various types of governmental policies, corruption, foreign trade policy and tax
policies are considered as political factors that are required to be focused by L'Oreal while using
digital techniques in order to ignore interference of legal parties of countries (Carr and Newell,
2014).It affects digital environment of cosmetic industry because when the sector is not able to
comply technology related policy then it not possible to conduct trade activities properly.
 Opportunity: If managers of L'Oreal take all the policies in to consideration while using
digital technologies then it can create growth opportunities without any interruption. Challenge: Sometimes businesses like L'Oreal fails to follow technology code of practice
which can create issues such as interference of political parties in operational activities.
Economic: Economic growth, interest rates, inflation etc. are the parts of such factors.
All of them are required to be analysed by L'oreal while planning to use digital technology to
market itself because they can affect negatively as well as positively. Such factors impacts
cosmetic industry as rise in inflation will affect pricing policy of companies which are operating
business under this sector.
 Opportunity: Government in UK and other countries supports companies which are
having higher visibility on online websites and using digital technology to promote
products because it can help to develop their economy. It is great opportunity for L'Oreal
because it is using attractive digital techniques for marketing purpose.
Challenge: Prices of products vary according to cost to company and using innovative
technologies can result in increased price of products. It can affect choice of customers because
when company raise prices then they switch to other organisations which are offering same
products on low prices (Durand, 2019)
Social: Age, cultural barriers, attitude, education level, genders etc. are the part of social
factors that should be taken in to consideration by L'Oreal while planning to use digital
technology for marketing. It affects business activities of cosmetic industry because it is vital to
focus on customer's preference while marketing products and if it is not focused then operations
cannot be executed.
 Opportunity: L'Oreal's target segment is women and when it uses digital technology
then their choices are the major elements that are considered to form strategic decisions.
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It is an opportunity for the company because it can help it to attract large number of
clients. Challenge: Ignoring or avoiding choices of customers can leave negative impact upon
business activities because they will not give preference to company which is using
unattractive digital techniques for marketing.
Technological: Level of innovation, automation, technological awareness etc. factors
should be analysed by managers of L'Oreals because if they have proper knowledge of latest
trends then it can result in successful marketing. It affects cosmetic industry because if
companies are having proper information of market then they can save money by not spending it
on irrelevant technologies(Aragón, 2014).
 Opportunity: L'Oreal conduct proper research and development activities which creates
end number of opportunities such as reaching to maximum customers and attracting
prospects. Challenge: Lack of proper information regarding technology can affect negatively and
result in overspending on improper technological enhancement.
Legal: Specific laws including copyright, patents, employment law etc. type of legal
factors are analysed by L'Oreal while using digital technology for marketing purpose as it is
required to make sure that all legal requirements are fulfilled or not. It affects cosmetic industry
because if appropriate laws are not followed by it then business activities cannot be conducted
appropriately.
 Opportunity: All the technologies that are used by L'Oreal for the purpose of marketing
which is an opportunity for organisation because it helps to meet government's
regulations. Challenge: When technology related laws are not complied by organisations then it can
affect negatively can create challenges for business which includes influence of legal
authorities in business activities.
Environmental: Weather, climate, natural disasters etc. are also required to be considered
by L'Oreal while planning to use technology for marketing purpose because it can affect the
mediums that are used to market. It can affect cosmetic industry because changes in environment
will leave negative impact upon marketing activities which depends upon digital media (Sheth,
Sinha and Shah, 2016).
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 Opportunity: Analysing such factors in advance is an opportunity for L'Oreal because
organisation can plan to deal with the problem at the time when it takes place.
 Challenge: If managers are not able to determine environmental factors and operations
are affecting it then it will create different challenges such improper marketing.
It is very important for L'Oreal to analyse all the above described factors, opportunities
and threats and formulate decisions for future so that business can grow faster and objectives that
are formed previously can be achieved. In order to deal with the issues, it is very important to
find best ways in which organisation can respond to those problems in appropriate manner (Ho,
2018).
TASK 2
Critical assessment of L'Oreal's business
In order to conduct critical assessment of L'Oreal the digital manager is required to
compare and contrast its digital and store presence. The comparison is as follows:
Store presence Digital presence
L'Oreal is operating business all around the
world and it has stores in those countries such
as Australia, London, England etc.
The countries where L'Oreal is not able to sale
its products on stores those countries can also
order products online in order to get its
products (Ghosh and Sharma, 2017)
.
When products get out of stock then
information of it cannot be analysed by
customers.
While placing order online customers can get
information of those products that are out of
stock.
For stores sales man or girls are hired by
organisation so that they can provide
information of them to customers and sale
items to them (Ismail, 2018).
For online sales organisation is required to hire
skilled people who are able to handle order of
customers and make sure that order get
delivered to their door step.
In stores discounts are implemented for a small
time period.
On online stores discounts and other coupons
can be used by customers that have been
acquired by them on their previous purchase.
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Offline stores have specific timings for
openings and closing so customers are not able
to buy products before opening and after
closing of stores.
On online store customers do not have to wait
for opening the store they can order products
online 24*7.
Through this table it can be easily understood that digital marketing is crucial for each
and every company at present. It is necessary that L’OREAL is using digital marketing in
positive manner through which organisational goals can be achieved easily. Although, store also
plays important role because it shows the brand image in front of those people who are not
connected with social media but it increases the overall cost of an organisation. But, while using
digital marketing for promoting product it will reduce the time and promotion can be done as per
the requirement of a company (Hult, and Sjölund, 2017). While taking about store, it creates lots
of trouble where lots of maintenance charges are also need to be paid and it is not easy to
commence store in each and every country but digital marketing can be done throughout the
world. It will help to increase the overall profit of a company.
TASK 3
Organising digital marketing activities to support L’oreal’s initiatives of building multi-channel
capabilities
It is important for L’OREAL that how they perform in the current market through digital market.
It is one of the key factor for any of the organisation but it is necessary for L’OREAL that how
they implement their strategy because that plays the most important role in this process. At
present it is necessary that how division is being done as it plays crucial role. It mainly refers to
the approach where company try to do interaction with their customer in wider range. The
interaction can be of two types and they are direct and indirect and it is the choice of company
they which one they adopt. It is being seen from last couple of year that L’OREAL is one of the
leading company in the world which uses digital marketing technology (Cunha, 2017).
According to L’OREAL, digital marketing can be organised in two ways such as on the basis of
Luxury cosmetic division and activity cosmetic division.
Luxury Cosmetic Division: It is necessary that the Christian Mulliez uses the best technology to
provide the service of luxury item to those people who are using it regularly and who are prime
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member of L’OREAL. While doing digital marketing it is necessary that they need to target only
those customer or area in which luxury items can be sold easily.
Activity Cosmetic Division: It is one of those activity which is being used by L’OREAL which
is providing lots of benefits to them to attract new customers. It includes those products which
are related with pharmacies, drugstores etc.
On the basis if this two work, making is being done by L’OREAL. On this regards
company have formulated new digital marketing plan can compromise the different component.
At present company is using mortal style and brick style store where customers can directly any
question which arises on their mind (Ahmed, 2017).
The different types of marketing activities to support L’OREAL are:
Promotion Mix: As, everyone knows that L’OREAL is one of the company which is
using promotional mix to ensure that digital marketing strategy are being used properly. For this
company conduct various activities such as:
 Advertising: It is the best method through which company make their product sellable in
the market. It is necessary that how they uses the digital market for promoting their
product.
 Public Relation: It is the most important thing for any of the company because without
creating it is never possible to sell any of the products. In context of L’OREAL, they try
to involve themselves with public by creating relationship.
 Personal Selling: It is helpful at their personal store where they uses mortar and brick
style. Due to personal selling, L’OREAL try to attract new customer and sell their
product in the fresh market. In this, company create direct relationship with customer
which helps to enhance their overall performance and take competitive advantage in the
market.
 Sales Promotion: This strategy is being prepared for short period of time and mostly
focuses on goal which are decided by the company. While taking about L’OREAL they
want to expand their sale near around 25% in upcoming 2 years where profit will be
increased by 10 to 12%. This can be only possible can adopt digital marketing for their
promotion (HUANG, 2014).
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TASK 4
Key methods to evaluate, monitor and measure the digital marketing effectiveness of
recommended activity.
In context of every organisation it is important to evaluate, monitor and measure the use of
digital market play crucial role (Ahmed, Sultana and Ahmed, 2018). While talking about
L’OREAL it is the most necessary thing which they required in present scenario. The reason
behind evaluating, monitoring and measuring is to find whether company is performing up to the
mark or not and should company need to change their style or not. It current situation can be find
through this method then it will be easy for company to attract more number of customer in
future which is the most important thing in present. To evaluate, monitor and measure the use of
digital marketing in context L’OREAL following methods can be useful.
 Key Performance Indicator: It is one of the most successful tool through which
performance can be measured easily. It will try to find out the success rate of L’OREAL
which is very important. Here, company uses three different things to promote their
product in the market and they are advertisement, standard of a product and viewership of
KPI. It will try to give proper direction to the company that whether they are following
the right path or not for achieving the success in future.
 Process of Measuring Digital campaigns: There are various search engine tool through
which company can successfully conduct the campaign. Here, L’OREAL can show their
Ads on google which is one the popular search engine and through which it can easily
find that which age group is much influenced for specific product. It is one of the
effective tool which tries to manage PPC ads for working effetely. It can be said that, it
will try to manage the scope of marketing advertisement of a company (Tortajada
Trullenque, 2017)
 Performance Measure via Online Metrics: Nowadays, there are various social sites
through which it can be easily found that company is performing well or not in
international market. L’OREAL can take the help of Hoot Suite metric which is one of
the most suitable way to evaluate the performance of a company in recent period.
 Population Measurement: It is important that how company judge their decision and for
that measurement is necessary. L’OREAL must try to find how many customers are
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attracted towards their companies’ product so that they can prepare their annual budget
easily in future (Fernández Pérez, 2018).
CONCLUSION
It can be concluded form the above file that digital marketing plays the necessary role for
each and every company but is up to their choice that how they use the technology. It has been
one of those platform which is helpful for enhance the overall performance of an organisation. It
is necessary for L’OREAL that they overview the external factors through which they execute
their plan easily. While talking about store and online marketing it can be said that digital
marketing is the better option for selling the cosmetic product in the current market. It can be
observed that in last few year L’OREAL have shown lots of interest towards digital marketing in
which they have achieved lots of success in the market which is one of the positive market. In
the end it can be said that, digital market support in luxury division and activity division is
helpful for attracting more number of customer.
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REFERENCES
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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.
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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.
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