L'Oreal Digital Marketing Plan: Analysis, Strategies, and Evaluation

This report provides a comprehensive analysis of L'Oreal's digital marketing plan, evaluating its digital presence through a PESTLE analysis, contrasting its digital and store presence, and outlining a detailed digital marketing plan. The analysis covers political, economic, social, technological, legal, and environmental factors affecting L'Oreal's digital activities. It assesses the challenges and opportunities within the cosmetic industry, focusing on the impact of digital technologies and regulations. The report also includes key methods for monitoring, evaluating, and measuring the effectiveness of L'Oreal's digital marketing initiatives, emphasizing the importance of adapting to changing consumer behaviors and technological advancements. This document contributed to Desklib provides insights into L'Oreal's strategies for enhancing its market presence and achieving its business objectives through effective digital marketing.

DIGITAL
MARKETING PLAN

Table of Contents
INTRODUCTION...........................................................................................................................2
TASK 1............................................................................................................................................2
Environmental analysis for L'Oreal digital presence ..................................................................2
TASK 2............................................................................................................................................5
Critical assessment of L'Oreal businesses by comparing and contrasting its digital presence
versus its store presence...............................................................................................................5
TASK 3............................................................................................................................................7
Digital Marketing Plan.................................................................................................................7
TASK 4..........................................................................................................................................10
Key methods used to monitor, evaluate and measure effectiveness of digital marketing for
L'Oreal.......................................................................................................................................10
CONCLUSION .............................................................................................................................12
REFERENCES..............................................................................................................................13
1

INTRODUCTION
Digital marketing plan considered as one of the most important document share detail for
all planning of organization digital marketing actions or campaigns. It includes many stages that
helps to make plans it effective more and more (De Pelsmacker, Van Tilburg and Holthof, 2018).
This plan need to be SMART, digital marketing plan main purpose is to sell and promote their
services or products in market place. More specifically, the intent of this plan is to connect
organizations or businesses with its target market via digital channels. Digital marketing is
current trends in modern world, at present as digital media is new or latest media that works with
support of internet and have proved to be the quickest medium of mass communication. The
present report is based on L'Oreal company and its digital presence. It explains environment
analysis for organization digital presence, centring on challenges, opportunities and impact
digital environment for cosmetic industry. This study clarifies L'Oreal business by contrasting a
comparing its digital presence versus its stores presence. It justifies plan for organizing or
managing digital marketing activities of firms to help firm's initiatives of building multi channel
capabilities in two types of division. Furthermore, it explains key methods used to evaluate,
measure and monitor digital marketing effectiveness for recommended activities.
TASK 1
Environmental analysis for L'Oreal digital presence
Environmental analysis is one of the best strategic tool that helps to find out the impact of
factors upon organization functions and activities. It is the procedure to identify all internal and
external factors, which can impact the company's performance. Here, environmental analysis is
used for L'Oreal digital presence, focus on challenges and advantage. PESTLE analysis consists
of different factors that influence business environment, these factors affect each industry
indirectly or directly. By identifying the impact of all these factors listed below, company can
make up its strategies in line with all changes.
Political factors: Political factors take nation's current political situation, it also reads
international political situation's that impact on businesses and country the most. Government
policies, rules and regulations, stability of government, taxes laws and tariff, entry mode
regulations, all these elements include in this factor which affect L'Oreal digital presence (Saura,
Palos-Sánchez and Cerdá Suárez, 2017). As the production organization is in Paris so mostly
government policies and rules of France influence L'Oreal very much. Apart from these taxes
2

laws of regions play critical role and makes barrier in success of firm. Opportunity: Company's
sale their products through online shopping sites that helps to increase its profit, sudden changes
in taxes policy bring many barriers for its digital presence. According to government tax policy
they need to pay high taxes on each of its digital presence and product selling via online
application. Thus, if L'Oreal pay taxes they can offer their products in every nations and generate
revenue as compare to another. Cosmetic industry likely has strong digital presence that might be
affect after high taxes pay on online selling. If cosmetic sector companies such as L'Oreal and
another pay these taxes they run their businesses effectively. Challenges: if cosmetic industry
organizations such L'Oreal cannot pay high taxes on it digital presence, because it is too high. It
impacts on their customer base and decrease it markets share as compare to before.
Economic factors: This factor include all determinants of its state, these elements can
conclude direction in which country economy might move. Inflation rate, credit accessibility,
monetary policies, unemployment rates, foreign exchange rate., disposable income of buyers are
the factors affecting any businesses such as L'Oreal digital presence the most. Recession factor is
one of the mainstream element that affect upbringing of cosmetic industry organizations such as
L'Oreal. Apart from these dimension pertaining to economic factors (Baltes, 2015). Challenge:
If company sell their products in different regions where recession is one of the current issues
within economy as it impacts on digital presence of firm, because the people during recession
period will not be able to buy or pay prices of L'Oreal cosmetic goods. They decline during
recession and refuse to purchase which highly affect negatively on company digital presence and
profit margin very much. It poses as one of the most challenging situation's for organization, to
balance and retain their market share.
L'Oreal gain high revenue they will be able to gain its business objectives and goals,
company try to gain competitive advantage by applying some business strategies based on
situation's. It provides the best opportunity to them to take higher platform in marketplace and
garb the attention of consumer.
Social factors: Nation's vary from each another, every country have distinctive mindset,
these postures have the impact on organizations. Social elements might ultimately influence sales
of services or products. Cultural implications, social lifestyles, educational levels, domestic
structures, gender demographics and connected demographic, etc. are the factors affecting
businesses as whole. Opportunity: Education is one of the most essential part of economic
3

growth, as it helps to develop nation better and better rather than before. If people within
economy are educated and have knowledge how to used mobile application, they can order
product via L'Oreal online sites. High education level contribute to increase cosmetic industry
market revenue or share. People with good education are able to find out the best products for
themselves, they know which cosmetic is right or best suited for their skin. Challenges: low
level of education is one of the biggest concern, as this factor affect L'Oreal digital presence the
most. If people does not have any sense of fashion because they are not much educated they
cannot be able to find better cosmetics for them, as it impacts on organization profitability (Luo,
Pan and Zhu, 2015). For example, if L'Oreal sell their products through its online sites within
those nations or state where education level is low, it can be impact on overall cosmetic industry.
L'Oreal identify customer needs and fulfil their demand as according to expectations that
define its social environment.
Technological factors: Technology is progressive continuously, technology
advancement is greatly affecting businesses. Technology change every minute, that is why
L'Oreal digital presence get impact. New discoveries, rate of technological advances, rate of
technological obsolescence and innovations technological platforms are the factors include in
technology elements. Opportunities: Customers likely move towards digital technologies, they
like to buy things more than purchasing products through stores. If L'Oreal implement more new
technologies in their business structure they can grab the attention of its customers. They can
update their digital presence and online websites as according to current technology needs, which
give consumer more options in context of shopping via online. Challenges: If L'Oreal cannot
implement new technologies or discover, they will not be able to satisfy their clients and make
them unhappy. As it impacts on its digital presence because people feel that company is not
offering products according to current trends. If they do not update their existing systems
organization cannot be capable to provide goods which consumer wants and expected, it is one
of the biggest challenge for firms and impact on cosmetic industry before affecting on company.
Legal factors: Legislations and rules take place from time to time, many of these
changes impact any businesses' environment. If regulatory structure sets up the new regulation
for cosmetic industry, for example, that law would affect as whole industry and organizations
under working this sector in that economy. Product regulations, competitive regulations, health
and safety regulations, employment regulations. PCPSA, means Personal Care Products Safety
4

Act, it regards to personal care goods passed by local government in 1938. Opportunity:
PCPSA affect L'Oreal digital presence and manufacturing structure the most. According to this
law if company can reduce percentage of chemical and constituents in its beauty products they
can sell cosmetic and personal care products to customers easily. As by reduce chemical assents
people like to purchase company products through online, they prefer and suggest another
people's around them to purchase L'Oreal cosmetic goods via online sites because it does not
harm skin and suited for all skin types. Challenge: After the law was passed L'Oreal have to
make some changes in their manufacturing cosmetic product. If company would not reduce
percent of avoiding chemical and another constituents according to PSCPSA law in its beauty
and personal care products, they face the biggest challenges that might be impact on its whole
profit margin and market share (Carlson and Lee, 2015). Because without changes according to
law they cannot introduce cosmetic products on online sites and sell through many digital
channels.
Environmental factors: Geographical location, weather and climate, waste disposal
laws, people's attitude towards environment, energy consumption regulation is the factors
include within environmental elements. Opportunity: In modern world people focus on their
skin and make it healthy for every. Due to some weather changes they prefer to use natural
products that suited to skin types rather than brand's products such as L'Oreal. If company
manufacture products within use of natural ingredients they can grab the attention of consumers
and make them satisfy and happy. They sell natural cosmetic goods through online sites that is
quite beneficial for them. Challenges: But if organization cannot be identify the needs of people
and manufacture product according to their needs that can be get changed due to weather change,
it might be impact on its digital presence, mostly people start avoiding purchase of company
cosmetic goods.
L'Oreal believe that they can mostly effectively promote and respect internationally
recognized human rights through its presence more than its absence. Organization launched new
sustainability plan know as “Sharing beauty with All”. L'Oreal is one of the two organizations
global awarded the triple”A” score by CDP, and independent firm that measures corporate
environmental performance.
5

TASK 2
Critical assessment of L'Oreal businesses by comparing and contrasting its digital presence
versus its store presence
L'Oreal is French personal care cosmetics beauty organization founded by Eugene
Schueller in 1909. It headquarters is in Clinchy, Hauts-de-Seine in France. L'Oreal is one of the
most trusted Cosmetic brand they offer its best products to customers and provide range of
cosmetics goods. It considered as the biggest cosmetics firm, they develop activities in areas
focusing on skin care, hair car, hair colour, perfume, make up, sun protection and more.
Company is first cosmetic group worldwide, L'Oreal stores is present in 130 countries and 127
international brands, in 2012 they registered 611 patents. They manufacture range of cosmetic
products and personal care goods and also sell through online sites. Company used digital
marketing as strategic tool that helps to introduce their products in marketplace. By introducing
goods in market firm would be able to attract customers towards them (L'Oreal - L'Oreal
Group,2018). With the help of effective digital marketing plan, they can make strong consumer
base rather than the another cosmetic brand.
Comparing digital presence versus L'Oreal stores presence-
L'Oreal has one of the biggest digital media presence more than any another brand around
the world, as part of its digital marketing plan, they maintain media profiles effectively.
Company introduce range of its cosmetic and personal care products through online sites
(Karjaluoto, Mustonen and Ulkuniemi, 2015). Within these sites they avail all the goods related
to skin care and hair care and many other just to grab the attention of customers. Online shopping
is the best way to purchase products according to needs and wants, it saves a lot of time of
people and offer different types of goods within each category. L'Oreal sell goods through its
own websites and also make deal with Amazon and other shopping channels that helps to supply
their products to large chain of consumer around the world. Organization sold cosmetics
products via online and through online websites, but one of their presence cannot be able to grab
the attention of customers. Cosmetic products such as nail paints, lipsticks, foundations and
another can be buy after identifying personally because each of the product shade is different.
Women's usually buy nail polishes and other cosmetic goods from offline or via stores, if they
purchase it at first time. L'Oreal stores presence as compare to digital presence is higher because
6

female's cannot find the perfect match of foundation based on their skin tone, they will not be
able to match the appropriate shade.
Contrasting stores presence versus digital presence of L'Oreal-
Digital presence Stores presence
Digital presence of L'Oreal is good, but not as
much effective than store presence. Customer
like to purchase cosmetic products after using
it so many times because they know which one
is suite's them most. Mostly people like to
purchase cosmetics product through offline
stores rather than purchasing online, they want
proper satisfaction. L'Oreal deals with Amazon
and another brands to sale its cosmetic
products and gain profit, but its online
presence is not as much effective and attract
people more than store presence.
In 130 countries L'Oreal open up their stores in
which they offer customers mostly women's
true range of foundations, lips sticks, nail and
many another cosmetic products within
different types of shades. Finding the right
shade's for cosmetic things is very difficult if
customers purchase through online, that is one
of the reason that online presence is lower than
store presence of organization. L'Oreal offer
their products through Body shop stores, its
store presence is high as compare to online
presence. Thus, L'Oreal increase profit and
generate revenue more and more by stores in
which they sell range of cosmetic products
suited with different types of skins.
TASK 3
Digital Marketing Plan
Digital marketing plan refers to the document which is prepared by the company for the
purpose of describing of digital marketing activities, strategies, actions and campaigns (Chaffey
and Ellis-Chadwick, 2019).
L'Oreal has structure a digital marketing plan which has following steps -
Step 1 – SITUATIONAL ANALYSIS
Situational analysis (Swot Analysis) is the base for any marketing plan which includes
the strengths, weaknesses, opportunities and threats of the company and provides company
guidelines regarding its position in the competitive market. It also helps company to analysis the
7

internal and external environmental factors which may or may not negatively impact the
company.
Swot Analysis of the company are as follows -
STRENGTHS WEAKNESSES
 High quality of the products
 International Presence
 Decentralized organizational structure
 Low division
OPPORTUNITIES THREATS
 Increase the demand of natural and
organic beauty products
 Increase in number of online users.
 Tough competition
 Changes in market demand
Strengths of L'Oreal
High quality of the products
L'Oreal provides high quality products whether the products are luxury or active. This
make customers attract towards this company. Also, company provide high quality products
everywhere whether its stores or sites or malls or shops.
International Presence
Due to high quality and easy availability of variety of products at everywhere, company
is able to make successfully presence at the international market.
Weaknesses of L'Oreal
Decentralized organizational structure
This lead company to lose control over day to day activities which lead to lack of co-
ordination between various department of the L'Oreal company which decrease the company's
profitability and not able to achieve the target (De Pelsmacker, Van Tilburg and Holthof, 2018).
Low Division
L'Oreal has launched so many varieties and divisions of the products. This lead company
to face issues regarding innovation in the products.
Opportunities of L'Oreal
Increase the demand of natural and organic beauty products
Due to increase in awareness of the natural and organic beauty products, company can
take opportunities from this and provide high quality natural and organic products. This can
8

increase the profitability of the company.
Increase in number of online user
At the global level, there is increase in the number of online users for the shopping. This
can increase the brand image of the company if company is able to make good presence at online
market.
Threats of L'Oreal
Tough competition
At the physical cosmetic industry and online cosmetic industry, company is facing tough
competition with Revlon, Lakme, Yardley and Chambor etc. This competition creates threat for
the company.
Changes in market demand
Market of cosmetic industry is dynamic, changes in customers' preferences and
awareness of customers towards natural and organic products are rapidly increased which lead
company to face threat and change their products in such as short span of time (Verma, 2017).
Step 2 – DETERMINATION OF DIGITAL MARKETING GOALS
L'Oreal's objectives regarding digital marketing is to increase their presence at digital
world and increase the confidence and trust of the customers within their brands related to their
luxury and active products within next 2 years.
L'Oreal smart objectives are as follows -
Specific – Their objectives are specific i.e. increase their digital presence and to gain customers
loyalty.
Measurable – Their objectives can be measured by market shares and views on their websites.
Attainable – Their objectives are attainable which means company has enough resources, time
and efforts for the achievement of the objectives.
Relevant – Their objectives are relevant for the company as increase in the customer base and
strong presence at digital market, company's profitability will increase and brand image will also
be enhanced.
Time Bound – They have decided the time bound i.e. 2 years.
Step 3 – DEFINE THE DIGITAL MARKETING STRATEGIES
To achieve the objectives, L'Oreal will use following digital marketing strategies -
Social media marketing strategy
9

It is a form of e-marketing strategy in which company do marketing of their brands and
luxury and active products through various social media platforms (Chaffey and Smith, 2017).
Multi-channel marketing strategy
It refers to the activities through which company is interacting and communicating with
their customers through various communication channels for their luxury and active products
whether its direct or indirect channels.
Step 4 – IMPLEMENT THE DIGITAL STRATEGIES AND TACTICS
For the implementation of Social media marketing strategy and multi channel marketing
strategy, L'Oreal will use various strategies and tactics which are as follows -
Mobile Marketing
It is a multi-channel marketing tactics in which L'Oreal is focusing on their target
audience through smartphones. Company can launch their own personalized applications through
which they can easily access with their customers regarding luxury and active products.
Email Marketing
It is a multi-channel marketing tactics in which company can send their emails regarding
offers on luxury and active products, products & their features, take feedback from the customers
etc.
Content Marketing
It is a form of marketing in which creation, publication and distribution of the content
related to the products are done through online. It is done by company through various electronic
channels to fulfill the needs of the online users of L'Oreal.
Retails Stores Marketing
It is a multi-channel marketing tactics in which company can use window displays by
changing and keep updating the displays about the products, their features and discounting
promotion. They also can display hoardings and banners in their stores and shops.
Web Marketing
It is a multi-channel marketing tactics in which L'Oreal use search engine optimization to
understand the websites and web pages so that they can help company to do marketing of their
luxury and active products and services through websites.
Social Media Marketing
It is a social media marketing tactics in which company will make their accounts on
10

various social media platforms such as Facebook, Twitter, Instagram, Snap-chat, Linkedln,
YouTube and Pinterest etc. After that they will post about their products, price, discounts, happy
customers reviews and advertisement etc. They also can display videos regarding their luxury
and active products on their social media platforms (de Vicuña Ancín, 2018).
Step 5 – MEASURE AND CONTROL
After implementation of tactics and strategies, L'Oreal will analyse the results which is
the outcome of the tactics and strategies. This is an important step for the company as it will help
company to get to know about their objectives and their access to the objectives. It is done by
various methods.
TASK 4
Key methods used to monitor, evaluate and measure effectiveness of digital marketing for
L'Oreal
Organizing digital marketing functions and activities is very essential for the growth of
business as it helps to support L'Oreal initiatives of build multi-channel capabilities in its luxury
cosmetic division and active cosmetics division (Boelsen-Robinson, Backholer and Peeters,
2015). To manage these activities, digital marketing plan is the best way contribute to grow
business more and more. Thus, it is important to evaluate, measure and monitor effectiveness of
digital marketing plan and its actions.
Evaluate digital marketing plan effectiveness- digital marketing plan is very essential
for increasing profitability and market share. But it is also as important to evaluate its
effectiveness, before identify capability of this plan identify digital marketing goals is necessary.
Market research is the best way to evaluate DMP, as it helps to identify that company is working
according to their goal or not. Market research contribute to find out the outcomes of this plan, if
it is beneficial for L'Oreal or not. After conducting market research company management take
their decision in context of marketing and selling their cosmetics products to targets customers.
The main purpose of this market investigation is to gather all the relevant information on
potential clients and current customer. As it also helps to collect data about how their plan is
going, does it work according to specific goals or not. After implementing plan in market they
need to find out its results which is important for them. L'Oreal goal is to increase digital
presence more than store presence, they want to gain consumer loyalty and build strong
11