Importance of Innovation and Customer Satisfaction: L'Oreal Report

This report analyzes L'Oreal's marketing strategies, focusing on innovation, customer satisfaction, and data-driven decision-making. It examines how L'Oreal uses sales data and marketing information to plan strategically, segment its market (STP), and design products and services to meet customer needs. The report details L'Oreal's approach to market segmentation based on gender, age, and psychographics, as well as its targeting strategies for the 'Organic face Mask' product. It also explores the importance of innovation in maintaining a competitive edge and achieving customer satisfaction through product design and marketing. The report concludes with viable solutions for the target audience, highlighting the role of innovation in meeting customer expectations and driving business success. The report also covers the rational for innovation and the importance of innovation in business and how it affects the customer.

REPORT

Contents
TITLE..............................................................................................................................................3
INTRODUCTION...........................................................................................................................3
Evaluation of the role of data in improving business and how business use sales and
information of marketing to plan strategically and make decisions. .........................................3
STP ..............................................................................................................................................5
Rational for innovation in product and service design in meeting the needs of the customer....6
Viable solutions for target audience ...........................................................................................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

TITLE
Analyze the importance of innovation and customer satisfaction in terms of achieving success
INTRODUCTION
This report contains the role of strategies and collecting information on the basis of sales
made so that needs and wants of the customer can be assessed. L’Oreal S.A. is a French
personal care company headquartered in Clichy, Hauts-de-Seine with a registered office in Paris.
It is the world's largest cosmetics company and has developed activities in the field concentrating
on hair colour, skin care, sun protection, make-up, perfume, and hair care. This report contains
information of Evaluation of the role of data in improving business and how business use sales
and information of marketing to plan strategically and make decisions. STP, Rational for
innovation in product and service design in meeting the needs of the customer and Viable
solutions for target audience (Kotabe and Helsen, 2020).
Evaluation of the role of data in improving business and how business use sales and information
of marketing to plan strategically and make decisions.
Better decisions-
With the help of data collected from different sources company is able to make
assessments on the basis of information they get from social media handles, accepting payment
through electronic source, or with the help of demographics, web traffic etc. there are many
factors L’Oreal faces while making the decisions such as analyzing the new of global events.
Even when the company is maintaining their operations at large scale they will be able to gain
more customers, retain them, predict the trends so that they can increase their sales, tracking the
interaction of social media handles and improving the level of service offered to them (Kasiri
and et.al., 2017).
Solve Problems-
Every business goes through a stage when their performance is weakened in the market.
This is where data helps the company to review the processes of marketing and analyze the point
of performance breakdown so that company can assess and gain insight through which they will
be able to make necessary changes (Leninkumar, 2017).

Understand Performance-
Data been always a big factor to provide accurate information of the customer, data gives
information related needs and demand of the customers and helps marketer to understand their
behaviour which helps them to create better relationship. Ultimately, data driven helps to
improve in a relationship marketing. After the collection of data Company is able to assess the
performance of different departments such as marketing, human resources, finance etc. this will
help the company to allocate the funds as per their performance and assess where they are
lacking so that they can improve their performance (Schilling and Shankar, 2019).
The data has huge roles in marketing to improve expectation of the customer because
customers can develop or create product as per the demand and expectation of the customers
by using the data which can helps to satisfy their needs.
Company uses sales and marketing in order to gather information and to make viable decisions
such as
They set the right strategy for marketing their brand as on the basis of sales they are able
to get insight through which they are able to meet up with the requirement of research and
information. This research will also contain details about the feedback of the customer which and
if their comments are addressed carefully then they will be to gain the benefit of word of mouth.
Other than this they will be able to form their target market up and assess which groups of
customers are viable for them so that they can set up (Zhao, Xu and Wang, 2019) their business
on the basis of that. Most importantly they will be able to serve as per the exact needs and wants.
It is important to form the strategies which help them to assess the strategies of positioning so
that they can deliver the message to the consumer and awareness is spread it in such a way
through which they are able to attract them. The information through sales and marketing will
help to get the insight on the process of purchasing which will help the company to select their
channels of products. With this they will be able to tie up with the partners of distribution. On
this basis company takes the decision of selecting the channel of marketing such as sources of
referrals, retailers, distributors sources of referrals etc. (Oh and Kim, 2017).

After the decisions that are taken on collecting the information through sales and
marketing it is necessary that L’Oreal focuses on launching of new products with new innovative
ideas so that they can increase their variety which will help them to set up a new portfolio so that
they can keep their market sustainable to pertaining forces into the market. If this is done
effectively then they will be able to set their vision according to that and on the basis of that they
will develop their strategies and achieve their goals in the expected period of time (Hollensen,
2019).
STP
Segmentation-
L’Oreal is one of the leading brand who are working ladies product in a reasonable
price range. They are selling ladies product like lipstick, conditioner, shampoo, face wash etc so
their main audience is young females and right now they are thinking to launch new product
“Organic face Mask” When the company commenced their operations many years ago they
understood the preferences of customers and their thought process which is why they segmented
their market on the basis of gender. The reason behind that was the management of the company
believed that the products offered by them were a mix of ingredients that are natural and comes
in low price. It is because many of the women believed that company uses chemical in their
products which is why they positioned it as this because women still uses more natural products
because they feel that this will not harm their skin. (Weisburd and Braga, 2019). In order to
serve as per the needs of the customer they have segmented their market on the basis of age and
psychographic segmentation. The buyer of their product are female between the gae group of 16
to 30. On the basis of class, the market has been segmented for young middle class who is
usually conservative. They wanted to gather the attention of people and the audience which
keeps knowledge of events and awareness is young people and in order to retain they kept
introducing offers in the market. Other strategy that they used for segmentation was on the basis
of psychographic factors which segment the market on the basis of thought process and behavior
of people. For instance, old audience has a conservative thought process and they do not adapt
new things easily, so they are focusing toward the old age group .

This helps L’Oreal to generate more sales in each of the segment they want to establish their
base and serve (Hall and Williams, 2019).
Targeting-
The targeting audience for the Organic face Mask will be females that belong from
middle class income level and mainly to those who is facing the issue of gray hair and also
maintains some effort to target the masses. Other than this they target them on the basis of
explaining the benefits of their products and offering them to masses. They made this strategy of
targeting because of the analysis of market they conducted and the results they obtained showed
that the buzz of their products is among young women that belongs from middle class family.
Then they changed their approach from selling as value of money to a product of class so that
even families which belong from upper middle class accepts it and tends to give it a try. This
approach helped the company to get better results in many areas (Mix and Brand, 2017).
Positioning-
In order to position their brand Organic face Mask has endorsed different celebrities be it
actresses, miss Universe so that they can position their brand as a prestige beauty product. This
has helped them to position the brand with different attributes instead of displaying as basic
shampoo. This helped the company to gain many benefits from the market as now they were able
to charge premium for their product which was way ahead of their competitors and they are still
selling their products as value for money. The focus of the company is on attaining and keeping
the customers loyal by giving them quality of service and products which will satisfy the needs
of middle class people (Iglesias, Markovic and Rialp, 2019).
Rational for innovation in product and service design in meeting the needs of the customer
Innovation plays an important role for business as it helps the company to keep their
portfolio updated and unique so that they can either stand ahead of competition or be in the same
line with them. L’Oreal is introducing new product in the market which is “Organic Face
mask” . This new innovation will help L’Oreal to take higher growth in the makes and increase
their sales. I personally believe it is an good innovation and good step by the L’Oreal company
because most of the product in the market captain chemicals which can have some side effect
on the face. skin of the females are sensitive and it requires proper care but chemical provide

harm to their skin so the new organic face mark by the L’Oreal can be useful for the female
customers because it contains organic ingredients and it does not give any harmful effect to
the skin. I believe that female customer will defiantly buy their product because it is an
organic product and other thing they will launch this product in reasonable price range so it
will be easy for the middle class female customers to but this product , organic face mask. This
innovation will provide their customers satisfactions, and they can also provide care to their
skin properly.
There are different forms of innovation that is open and closed style of innovation. If they
use closed form of innovation then it will be based on the concept of product launched by
another brand (Perreault, 2018). On the other hand, if they work on open form of innovation then
they will bring something that does not exist in the market and being in the line of cosmetics its
difficult but it is viable anytime. It is important for the company to understand that making a new
customer is five times more expensive than maintaining an already existing customer. Above that
in order to attract them it is necessary to bring innovative products because that is the main
source of reaching the level of customer satisfaction. The reason behind that is customers remain
interested in products that have advanced and innovative attributes as they make their work
easier and is more convenient for them. If they succeed in this aspect, then they will be able to
achieve the goal of getting repeated purchase from the same customer and keep them loyal with
them. It has been assessed that the money that a brand invests in the strategy of marketing needs
to invest in the infrastructure and model of business of the company so that they can work with
employees that have knowledge and skills and this way company will be able to allot
investments in the areas and take the use of resources effectively so that they can understand the
needs and wants of their target audience and satisfy them. All the strategies of innovation will
help the company to perform better in the market and increase their share so that they can
achieve their goals and objectives (Chen, Yin and Mei, 2018).
Viable solutions for target audience
In order to increase their share in the market it is necessary that L’Oreal works on changing their
patterns and take the use of such areas which helps to increase the awareness of the brand in the
eyes of target audience. It is necessary that they work with modern approach in the market.
Participate in Events-

In order to generate more customers, it will be helpful for L’Oreal to participate in events
of local community and participate in it as the target audience of the brand is middle class and
they will meet this type of audience in local events. The events can be in the form of
conventions, seminars, conferences, festivals etc. (Wikhamn, 2019). in these events company can
open up their own booth so that they can increase the awareness of their brand and in return they
will be able to understand their needs and wants with either the response on product or feedback
which can help the management to make necessary changes. Other than this they can host an
event and by promoting their brand they can make them understand that how the products
offered to them will help them to satisfy their needs and wants. This will also help the business
to see the viability of their innovation so that they can make changes to it as per their
requirements (Chaffey, 2019).
Partnership with other brands-
L’Oreal maintains their operations on a large scale and in some countries there may be
situation where they may not be able to deliver their products in large volumes and facing losses
which is when they can consider the option of partnership. This will be done when company will
believe that they will have an idea that can satisfy their needs and wants and with the trust of
other brands they will be able to serve their target market while earning high level of profit
which will keep both of them satisfied (Kahn, 2018).
Targeted Advertisements-
There are many problems women face and for that they keep on finding and changing
their products so that they can cure it. This can be used as a chance to serve their needs as many
women suffers from the issue of dandruff or gray hair or losing their shine. L’Oreal can use it as
a positioning of their brand and while (Zhang, Zhang and Zhang, 2019) presenting their
advertisements it is necessary to use this in their tagline so that they can target directly to their
issue the impact of this will be severe as it is linked with their interest or solution of the problem.
This will force the customer to make an attempt and try out the product and if the product is of
high quality with reasonable pricing then they will be able to achieve growth in the market
(Nambisan and et.al., 2017).
Influential content-

The audience targeted by L’Oreal for their new product “Organic Face mask” is young
and in order to offer them solution to their cause they can spread it through channels in which
they interact the most such as social media platforms. The brand can tie up with bloggers and
vloggers and with the spread of hash tag they can spread the awareness at a very fast rate. This
will help the company to make their innovation famous and will increase the demand of their
products and they will achieve success in the market and their new product and innovation will
generate more customers for the company as their needs will be satisfied (Agnihotri and et.al.,
2016).
CONCLUSION
From the above studies it has been concluded that it is important if the business assess the
needs of the market and then develop the strategies and infrastructure so that they can increase
the rate of their success. This will help the business to achieve their goals so that they can
increase their share in the market and for that they need to keep focusing on upgrading their
portfolio with better quality.

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