Digital Marketing Plan for L'Oreal: External Factors and Strategies

This report provides a comprehensive analysis of L'Oreal's digital marketing strategy. It begins with an introduction to digital marketing and an overview of L'Oreal. Task 1 explores the impact of external factors, using PESTEL analysis to assess political, economic, social, technological, environmental, and legal influences, along with micro factors like suppliers, competitors, customers, employees, and investors, on L'Oreal's digital presence, identifying opportunities and challenges. Task 2 assesses and compares L'Oreal's online and physical presence, highlighting revenue generation and consumer behavior. The report then delves into organizing digital marketing activities to support L'Oreal's multichannel capabilities in its luxury and active cosmetics divisions (Task 3). Finally, Task 4 evaluates methods for monitoring and measuring the effectiveness of digital marketing efforts, culminating in a conclusion and references.

Digital
Marketing Plan

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Impact of the external factors on the digital presence of the L'Oreal.....................................1
TASK 2............................................................................................................................................4
Assessment And Comparison Of The Online Presence And Physical Presence Of The L'Oreal
................................................................................................................................................4
Task 3...............................................................................................................................................6
Provide a plan for organizing digital marketing activities to support L’oreal’s innitiatives of
building multi-channel capabilities in: (a) its luxury cosmetics division, and (b)its active
cosmetics division..................................................................................................................6
Task 4 ..............................................................................................................................................9
Evaluate methods of monitoring and measuring digital marketing effectively.....................9
Conclusion ....................................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Digital marketing plan is the procedure to perform the marketing of any product or
service on the digital platform to reach to the larger number of the ordinance (Brennen and
Kreiss, 2016). L'Oreal is a French company which is providing cosmetic, skin care, sun
protection cream, make up, perfumes, hair and men's skin care products in the international
market. This report is analysing the opportunities, challenges and impact of the digitalisation for
the L'Oreal. This study is presenting about the digital & marketing tools and platforms used by
the company for marketing and business. The evaluation of physical presence verses online
presence of the company has been carried out. The study is also explaining the method to
organize the digital marketing activity and multichannel capability in the organization. This
report is also covering the methods to monitor and measure the digital market effectively.
TASK 1
Impact of the external factors on the digital presence of the L'Oreal
The external factors have major impact on the digital presence of an organisation.
PESTEL analysis is conducted to know how this factor affects the digital business of the
organisation. The factors have impact on the digital environment and this impact leads to some
opportunities and challenges (Cenamor, Sjödin and Parida, 2017).
PESTEL Analysis
PESTEL analysis is consists of the study of the external factors that affects the business
of the L'Oreal. This factors are political, economic, technological, social, environmental and
legal. This pestel is conducted to evaluate the opportunities, challenges and impact of PESTEL
factors on the digital environment of the L'oreal.
Political Factors
Political factors can affect the digital environment for L'Oreal's business. Every nation
have their own policy which should be followed by each organisation running in the nation. The
government change the rules, laws and the policies to improve the economy, employee laws,
environment law and trade restrictions (Pan, Chen, and Zhan, 2018). The digital marketing of a
product is really hard to implement for the nations because the policies of the nation. In some
nations some social media is not allowed, for the marketing of a product the social media is the
essential part and without social media the company online selling goals can't be completed. For
the example China government has banned the use Facebook for the people (Karakaya, and
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Demirkan, 2015). So the number of ordinance for the product marketing of L'Oreal is reduced
and this have major impact on the digital marketing and selling of the company product and
challenge for the company to perform digital marketing without social media sites in a nation. In
mostly countries the social media platforms are working with some rules implemented by the
government and provides the opportunities to L'Oreal to promote their product online by using
the social media and digital platform.
Economic Factors
In some countries the online promotion of products and services is expensive because of
the economic decisions made by the government. This mainly reduces the opportunities for
L'Oreal to promote their product online. This economic policies of the nation are challenges for
the company to sell or promote their product online. The major impact of this is on the profit of
the comp[any which is generated by the online marketing.
Social Factors
The education status of teenagers and the younger generation allows them to use the
digital technology this helps the organisation to reach to the customer group of teenagers and
younger people who are mostly using the product of the L'Oreal. Older generation don't use the
social media and are not enough educated to use the new technology create the challenge for the
company to reach to this age group. In the modern lifestyle people prefer the online purchase
method to save time and money this create the major opportunity for the company to perform the
marketing operation affectively.
Technological Factors
The latest technologies are easily available to buy, the customers can easily understand
the new technology this helps the company to create new ways to promote their product online
and it is a major opportunity for the company. The main challenge for the company is to change
the current technology and implement new one and train the technological staff to perform better
on the new technology. This might have both positive and negative impact on the marketing and
online business of the products. The negative impact is, it need much more time to get familiar
with the new technology.
Environmental Factors
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The digital technology doesn't affect the environment and this technology is environment
friendly. For the L'Oreal's online marketing and selling is not affected by the environmental
factors (Grünig, and Kühn, 2015).
Legal Factors
The laws and acts that affect the online business and promotion of the company product
comes in these factors. The data privacy and security acts helps the organization to increase the
opportunities for the online marketing and selling of the product. In some countries the laws
related to the cyber cell prevent some actions of the marketing of the company and it is challenge
for the company to sell or promote their product with the limited option (Dobrin, 2019).
Micro factors that affects the digital environment
The internal factors of the loreal affects the digital environment of an organization are-
Suppliers
Competitors
Customers
Employees
Inverters
Suppliers
The supply chain of an organization affects the digital environment because the delivery
of the product and convenience in the process lead to the customer happiness and the price of the
delivered product depend on the supply chain (da Silva Cândido, and da Silva, 2016).
Competitor
The competitor of the loreal also using the online platform for sells and marketing of
their product. So this also can harm the digital environment of the organisation.
Customers
Customers are the target for the online sell if the customer are not satisfied with the
company's online service it will reduce the effectiveness of the digital business.
Employees
Employees are the major internal factor for any business platform. If the employees are
not familiar with the online marketing and online selling process. This will lead to reduce the
overall performance of the business.
Investors
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The investors of a company plays major role in the organization. The online business
investment is provided by the investors. The digital marketing and selling process also needs the
money to set up a platform to start the online business. If investors don't have enough fund, will
affect the digital business plan of the organization (Wolff, 2016).
Opportunities of digital marketing for the L'oreal
The new digital technology allows the company to develop the online market for the
company product. The most of the population are connected with the digital technology and it is
an opportunity for the organization to grow the business more digital. This will increase the
profit of the company and will create vast market for the business. Digital market allow to reach
more customer without spending too much.
Challenges for the Digital Marketing
When the company enters the global market they have to face some challenges related to
the security and technology. Here are some of the challenges faced by the organisation.
1. Digital data security is a major challenge for the company.
2. To improve the security of money transition through the digital technological is a larger
challenge.
3. To improvise the marketing strategy with the changed technology frequently is also a
challenge.
TASK 2
Assessment And Comparison Of The Online Presence And Physical Presence Of The L'Oreal
L'Oreal is one of the largest brand in the cosmetic industry which is selling the products
like skin care, perfumes, hair care and men skin care. To increase the online selling share the
company is more focusing on the digital market (Cunha, 2017). To increase the online
promotion, marketing and selling L'Oreal increased its budget for 15% in year 2013 and then
increase the budget upto 30% in year 2016. To be more effective in the digital market L'Oreal
create the online community on the social media sites like the Facebook, Snapchat to take the
feedback of the customer. To improve the social presence of the company hired some influencers
to improve the marketing and revenue generated from the online market (Pink, 2016).
The revenue generated by the loreal of 2 billion euro mark, which is 8% of the total revenue of
the company. The growth in the revenue of the loreal is about 30 % of from year to year. China,
the US, korea and the UK market is leading the online market of the company. The product of
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luxury and active division is now more than 10% of the total revenue in the e-comerce sector. As
the consumers are adding to the online platform of the loreal the marketing focus of the loreal is
shifting towards the digital marketing. The loreal's approach is shifting towards the digital
market is known as Digital first. The 38% of all media investment is in digital marketing
processes. The online market of the loreal is growing much faster than the physical market.
There are more than 1 billion followers on its company website and there are more than 250
billion followers through the social media platform. As per the mind set of the consumer the
company is designing the graphics and animation as per the consumer needs. For more effective
promotion company is using the short and precise content (Kotler, and Armstrong, 2015).
Here is some result data of the profit earns by the loreal in financial year 2017. Total
number of sales by the physical stores is 26.02 billion euros. The operation profit of the loreal is
about 4.68 billion euros which is representing the 185 of sales. The per share earning is 6.65 euro
s and the net cash flow is 3.97 billion with an increase of +15.3%.
Online presence of L'Oreal Physical presence of L'Oreal
The online process is fast and much effective
and provide more convenience.
This is time consuming and more effective
than the online store.
The 10% of revenue is generated by the online
presence.
Rest of the 90% revenue is collected by the
physical store.
Easily accessible for the customer and can be
used form home
Need to go out for this and physical stores are
not everywhere.
The buying procedure is based on more
reviews of the customers.
This is much better cause the physical
experience of the product is possible
This is cost effective because buyer need to
pay only for the product.
This cost much money because customer need
reach at the physical store to buying product.
As per the comparison above it is concluded that the most of the revenue is generated by
the company is from the physical stores. The loreal stores are spread in 130 countries around the
world. But the online stores are more accessible for the customers. The online process is much
faster than the local physical stores. For the customer who can't reach to the physical store of the
loreal can use the online way of purchases, which provides more continence (Eastman, Aviles,
and Hanna, 2017).
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The most important thing for the physical store is the physical experience. The customers
use the cosmetic product of a company wants to feel the experience before buying. But in the
online stores the physical experience of the cosmetic product is not possible the customer have to
buy the product only by judgement of the pictures provided and the product related
documentation, some times this lead to the inconvenience of the customer.
For the online stores some factor affects the selling of the company product. From the
bad feedbacks and bad reviews lead to negative marketing and it can ruin the company image
and the decrease the brand value of the company. The online purchase procedure is faster than
the physical store and negative marketing of the Loreal can reduce the number of the customers
for the company. If the company is more focused on the online marketing and wants to grow the
online business so they need to implement some changes to make this process more continent
and secure.
Task 3
Provide a plan for organizing digital marketing activities to support L’oreal’s innitiatives of
building multi-channel capabilities in: (a) its luxury cosmetics division, and (b)its active
cosmetics division.
Multi channel marketing plan is very important for Lo'real and its helps in effective
communication to anywhere. Its only possible through digital marketing plan because its make
easy to marketing because through this Lo'real make strategies easily and achieve their goal.
Through digital marketing performance is also increasing and product also promote (Ahmad,
Musa and Harun, 2016). Following is marketing plan of Lo'real :-
Situational analysis :- this analysis includes SWOT analysis that helps in strength,
weakness, opportunities and threats and its helps in give direction of operational activities of
organization (Ahmadi, Dileepan, and Wheatley, 2016).
Strength :-
A variety of beauty and cosmetic product – Lo'real has large number of variety of
cosmetic product because it spend and invest more money for increase different types of product
like makeup, hair and skincare and it also focus on unique product so its helps in increase their
productivity and also provide options to customers according to their need.
International access – Lo'real is very popular brand that spread in global level it is
spread in 120 countries so it produce large quantity of product and distribute to all in large
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number of product. So it consumes less amount and expenses because it produce product in bulk
so that reason it builds their good image on global level and customer attract in large number.
Weakness :-
Slow divisions – Lo'real has many products so it has to also essential that it tackle
everything with effective manner so it hire more and more employees for manage work and it
has 60000 workers that manage all department's work like manufacturing, marketing and
accounting etc so due to more employees work in organization it also consume more expenses
and also many people manage products so it creates slowness.
Growing saturation – Lo'real innovate many types of product frequently like hair
product. It includes shampoo, conditioner etc so existing product of Lo'realis saturated day by
day so its also is weakness of this organization (Orsi, 2015).
Opportunities :-
industry expansion – Lo'real is easily expand their business on global level in different
countries. Because it has different types of product so customers always want new and unique
product for their body. So it is best opportunity for Lo'real because it brand already built good
image and relationship with customers.
Create new product – Lo'real has many different type of products so customers most
likely in present time dark skin toned product and curly hair products so its focus on provide that
type of product because Lo'real produce according to demand of their customers.
Threats :-
Competition – Lo'real has threat of competition because day by day many organization
present in markets with same size and same products. So it has major threat of competition in
market.
Tricky cash flow – Lo'real has tricky cash flow because because it offers many type of
product so profit has to divide ion different segments is very complex and difficult.
Digital management goals – it is make through SMART tool that stand for specific,
measurable, attainable, realistic and time bound. So through these elements digital management
goals is decide (Kache and Seuring, 2017).
Luxury cosmetic division:-
Specific – Lo'real create and increase attractive and effective plan about luxurious
products that helps to high class customer's satisfy their needs through fulfill their needs.
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Measurable – this element is use for set objectives that measure needs and choice of
high class customers and develop luxury products for fulfill their needs.
Attainable – this element use by Lo'real for proper planning for develop luxury products
and it is done through adopt different types of technology and innovations that produce luxury
product according to demand of high class of customers.
Realistic – Lo'real plan about raw material and resources that useful in produce luxury
product so for that its make plan about purchase quality raw material rather than resources.
Time bound – Lo'real also make plan about time frame because its important for achieve
goal and develop product.
Active cosmetic division :-
Specific – it helps in make plan about natural and organic product that demand is very
high by middle class customers.
Measurable – it helps in measure about active products trend, customer choice and its
taste of active product so then they plan and implement them.
Attainable – Lo'real has many types of active product but it also improves and develop
their product and promote only for fulfill customer's needs.
Realistic – this element helps in make plan about produce unique product and develop
their active product.
Time bound – it also make plan base on time frame because Lo'real is very big brand
and its works on global level.
Management strategy :- it include STP model and its stands for segmentation, targeting
and positioning.
Luxury cosmetics division:-
Segmentation – Lo'real divide their customer for luxury product in special category.
Luxury cosmetics customer is those customers that aware about their skincare.
Targeting – Lo'real target rich type of people in developed countries and it also focus on
18-35 age group of people that they create demand of luxury product.
Positioning – Lo'real develop their luxury product through attractive advertisement of
products through social media, digitally etc so its helps in promote and popularity of products
(Yadav, Joshi and Rahman, 2015).
Active cosmetics divisions :-
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Segmentation – This elements use for find middle class of customers for active
cosmetics products and then categories them.
Targeting – Lo'real target women of developing countries that aware about their skin and
their body so it produce product according to demand and attract them.
Positioning – it produce product with uniqueness and reasonable price. Then promote
them so its helps in proper and attractive advertise for increase their sales and profit (The
segmentation, targeting and positioning model, 2017).
Digital marketing strategy :- Lo'realis used different type of latest technology that helps
in promote their cosmetics products like social media, digital plate forms and devices that helps
in share information of product to customer on global level is easily. It also use advertise from
celebrities of brand that it helpful in increase sells of products.
Measuring results – Lo'real measure results after put all efforts and it is measure through
statistical data like customer satisfaction level, market share and profitability. It is necessary
because organization spent money for put efforts so measurement of result is very important for
evaluate that all these input give output satisfactory or not.
Task 4
Evaluate methods of monitoring and measuring digital marketing effectively.
Digital marketing plan is useful in improve business of Lo'real that increase customer's
and also increase built of image and brand of organization on global level. Digital marketing
always helps in promote their product and beat to competition. Because Lo'real offers different
types of product like luxury and active cosmetics product so digital helps in increase productivity
and profitability of Lo'real through sell. Because it share information easily (Romero-Gutierrez,
Jimenez-Liso and Martinez-Chico, 2016).
Factors of evaluation of digital marketing effectiveness:-
Research of markets – for evaluation of digital marketing Lo'real follow research
method and through this method it research markets and take feedback and evaluate his
satisfaction level through product. Then it makes plan about promote products through digital is
effective or not. Because it wants to return on investment it means that if it spent money ion
digital marketing so it also want output. So through research it also helps in evaluate return on
investment.
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Reviewing sales numbers – after put digital marketing plan Lo'real evaluate that sales
numbers of product and how many people increase as customers in organization. Through this it
compare customers quantity before and after adopt of digital marketing. So its helps in
evaluation of that effectiveness of digital marketing so its helpful in analyze that customer is
attract or not and use of product (Dwivedi, Kapoor, and Chen, 2015).
Actions of competitors – Lo'real evaluate that digital marketing effective or not because
action of competitors shows all reaction like copy of tricks and same type of activities do and try
to do best from Lo'real for attract customers and increase their marketing so its helps in evaluate
that digital marketing success or not.
Monitoring factors of digital marketing effective or not :-
Conversion rate – Lo'real monitor their effectiveness of digital marketing through
conversion rate it means that it monitor that numbers of leads of customers available in
organization and after digital marketing and how many numbers of customers convert from
leads. It also monitor that how many leads got and numbers of customers visit website of
organization and through this it track conversion rate and if conversion rate is low so it make
plan about increase their digital advertisements. So its helps in that track effectiveness and
promote and improve products.
Average session duration – this method is also best way for monitor effectiveness of
digital marketing because it means that how much time individual spent with Lo'real web site. So
its helpful for understand that how much time taken by customers for take decision about
purchasing. So its make easy to monitor of digital marketing effective or not. Because if visitor
of web site is stay with one page for long time and then come on next page so its helps in
understand that any confusion present with page.
Bounce rate – Lo'real has also method of monitor of digital marketing effective.
Through this method organization monitor that visitor how many pages visit and leave. So its
called bounce rate if maximum visitors visit all pages of web site of Lo'real so its helps in
monitor effective digital marketing. Bounce rate is average between 40 – 50 %. so if bounce rate
is under 40 % so its very good and great and if bounce rate is above 55% so organization has to
make some changes (Stephen, 2016).
Methods of measuring digital marketing effect:-
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Online sales – it is very beast method of measure digital marketing effective or not
because online is a simplest way of track that how much product sale from web sites and which
product most use and purchase by customers and what campaign mostly online sale so its shows
that how to improve digital in effective manner.
Lead and sales from phone cells – it is also important method of measure that effect of
digital marketing. Through this Lo'real sale their products through phone calls so it easily
measures that how many customers touch with phone call sales with organization and also helps
in take feedback from customers through online and shows that through digital market attraction
of customers and effect it.
Cancel rate – this method is useful for Lo'real in measure digital marketing effect.
Because this method is use for measure rate that how much order cancel by customers. It means
that customers want to purchase products but it can not purchase due to some reason so it means
that Lo'real measure cancel rate of order after complete order and it helps in measure reason.
Leads from live chats – it is also important method of measure digital marketing effect
on lo'real. So it provides live chat to customers. Through this organization track that which
campaign take more leads through live chats and through this it is shows that visitors behave on
websites (Spiller and Tuten, 2015).
Conclusion
From above study it has been summarized that digital marketing plays vital role in success of
lo'real and it also helps in make effective plan of improve performance and promote. This report
also covered that environmental factors also affect organization and luxury cosmetics and active
cosmetics how to increase sales of product and improve profitability and productivity. It also
covered that organization follow different types of methods for evaluate, monitor and measure.
So lo'real also do pestle analyze for evaluate external factors that affect to business performance
and prevent them so digital marketing make communication easy and also helps in share
information about product as well as increase popularity and build strong image.
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REFERENCES
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