Proposal for L'Oréal's Innovative Virtual Beauty Service Concept

This report presents a detailed proposal for L'Oréal's virtual beauty service, focusing on innovation within the cosmetic industry. It begins with an introduction to innovation and its importance for organizations, followed by a background on L'Oréal and the current market situation influenced by the COVID-19 pandemic. The report includes a literature review on the importance of innovation, theories of innovation, and the process of developing innovative ideas. A critical analysis of L'Oréal's virtual beauty service is provided, highlighting its potential to meet consumer needs and gain a competitive advantage. A SWOT analysis is conducted to identify the strengths, weaknesses, opportunities, and threats associated with the service. Finally, the report offers recommendations, including loyalty programs and punch cards, to enhance the service and ensure its success. The report emphasizes the potential of virtual beauty services to adapt to changing consumer behaviors and drive business growth for L'Oréal.

PROPOSAL

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
BACKGROUND OF ORGANISATION AND DESCRIPTION OF SITUATION.......................1
LITERATURE REVIEW................................................................................................................2
CRITICALLY ANALYSIS OF PRODUCT AND SERVICES OR PROCESS.............................3
SWOT analysis............................................................................................................................4
RECOMMENDATION WITH JUSTIFICATION.........................................................................5
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Innovation can be defined as a process of developing a new product, method, or service
in order to fulfil main needs and requirements of customers. It is one of the most important part
of an organizations as it helps the companies in breaking into new market segment in order to
attract a greater number of customers. It is one of the most important part of an organization as it
helps them to identify and fulfil changing needs of their customers and gain competitive
advantage (Nambisan and et. al., 2017). It is one of the best ways though which entrepreneurs
think of new ideas for bringing improvement within their new processes, products, services and
make them more effective and efficient so that they can meet changing needs and desires of their
target consumers. Innovation also helps them in gaining competitive advantage, improve their
productivity and profitability in a much better manner. This proposal will focus upon
development of a proposal for an innovative product, process or service of an organization.
Organization chosen for this proposal is L'Oréal and service chosen for this proposal is virtual
beauty service.
BACKGROUND OF ORGANISATION AND DESCRIPTION OF
SITUATION
L'Oréal is a French personal care organization that was founded in 1909. It is
headquartered in Clichy, Hauts-de-Seine, France. Its main office is registered in Paris. It is one
of the well- known and one of the largest cosmetic organization. They have mastered in cosmetic
field and concentrates upon hair colour, skin care, sun protection, make-up, perfume, and hair
care and provide products for the same (Santos, Au-Yong-Oliveira and Branco, 2018). This
organization was founded 111 years ago by Eugène Schueller. Innovation has always been one
of the top most priority this organization. In order to move forward with changing perception and
preference of their customers they continuously bring changes within their products and
technologies used by them. They have even developed their own application which is used by
their customers so that they can order their products online easily. With changing market, they
developed an application named as Perso that creates custom formulas for lipstick, foundation,
and skin care. Customers can use this application through Perso app. It is an artificial intelligence
application which is expected to be launched in 2021.
But due to current situation of Covid-19 they had suffered loss (Von Krogh, Kucukkeles
and Ben-Menahem, 2020). Customers have reduced to visit store for purchasing. Customers have
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also stopped visiting L'Oréal parlours. This current lockdown situation due to Coronavirus
pandemic has impact almost all the industries including cosmetic industry. So, in order to
increase overall sales, they have introduced virtual beauty service in which they will provide
virtual telephone and video beauty services and personalized sessions with beauty experts as per
the convenience of their customers. This innovative service has helped them to enhance their
overall products and services, and has also helped them to enhance their overall production.
LITERATURE REVIEW
Importance of innovation in enterprise
According to the view of Hall, (2017) innovation is extremely important for an
organization as it helps them in bringing improvement within their current processes, products
and services provided by them to their customers. Innovation can not only help in bringing
improvement within efficiency of products and services but also helps in enhancing overall
effectivity and efficiency of processes, and enhances overall profitability of an organization.
Today business environment or market in which organization deal has become extremely
competitive. Advancement in technology has further made it difficult for organizations to remain
competitive in market and give a tough competition to its competitors. It is one of the most
important part of a business process that helps organization to maintain an innovative and
creative environment. Focus upon innovation also helps companies in generating interest of their
customers within their business, new products or services introduced by them ways in which
organization has helped its customers in fulfilling their needs and requirements in an appropriate
manner. If a firm wants to move forwards towards growth and development then they need to
focus upon innovation only for improving productivity, but to reduce overall cost, build brand
value, establish effective and efficient relationship with their customers, increase productivity
and overall turnover as well.
Theories of innovation
As per the view of Brawner and et. al., (2019) if an organization needs to bring
innovation within its business processes, products and services then for that they need to focus
upon adopting an appropriate innovative theory. There are various kinds of innovative theories
that can be used by organization but to common theories of innovation are: diffusion theory,
disruptive innovation theory. Diffusion theory is one of the oldest theories of innovation which is
used by organizations. This theory clearly explains ways in which idea of product gain
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momentum and can be spread in entire organization. This helps employees to adopt new idea and
work upon development of new product or service. Another one of most commonly use theory of
innovation is disruptive innovation theory. This theory of innovation is mostly misunderstood.
Most of the companies used this theory of innovation of releasing new offering of products and
services that can attract more customers and disrupt business of other organizations.
Process to develop an innovative idea
As per the view of Brawner and et. al., (2019) explains that, it is extremely important
think of an innovative idea. The process of innovative thinking development of innovative
products, process and services starts with engagement of creative thinking people who can easily
use creative tools and processes in order to resolve any kind of problems and convert it into an
opportunity. For this organizations need to develop an environment in which creativity and
innovative thinking is encouraged in employees. Focusing upon development of an innovative
process for development of innovative product, service or process help an organization to
achieve their pre-defined goals and objectives in an effective and appropriate manner. It is one of
the main responsibility of organization to provide effective training and development to
employees so that constructive, innovative and creative thinking within employees can be
encouraged.
CRITICALLY ANALYSIS OF PRODUCT AND SERVICES OR PROCESS
L’Oreal is one of the biggest brand in global marketplace so that they can provide various kind
of beauty products for their potential consumers. Nowadays, COVID-19 pandemic has been
spreading all around the world. With so many women continuing to look after their skin and
wear makeup at the time of lock down (Lee, Chen and Trappey, 2019). In this way, L’Oreal will
launch an innovative service for existing consumers such as “Virtual Beauty Service”. It is based
on the innovative idea that needs to be interacted with many people, identifying their specific
requirements regarding the skin care. This will help for increasing the great opportunities for
L’Oreal from marketplace.
By using Virtual beauty service, Company will interact with client, offering customer
personalized session with consultants. With four unique 20-minutes personalised skin care and
cosmetic services. Consultant will share the better facilities and give brief idea about the
makeup, advice from comfort of their home (Santos, Au-Yong-Oliveira and Branco, 2018). this
will not only providing the tips, makeup advice but also providing recommendation to use
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appropriate beauty item according to their skin tones. Afterwards, consumers will interact with
consultant through video service or telephone and also taking follow-up with email summary of
recommendations.
Due to COVID-19 and lockdown, women’s are going to salon parlour for skin treatment.
In this way, this kind of virtual beauty service will attract more and more consumers,
participating within different session (Liu, 2020). This type of concept will gain more popularity
which help for business growth and development. Through this, L’Oreal will increase their
business demand and achieve competitive advantage in global marketplace.
As per innovative idea related Virtual beauty service, there is no more appropriate time to
treat yourself and pampering. Whether many women’s are looking to maintain their skin care
and start an entire a new routine. At that time, Virtual beauty service become consider as
important concept that will not offering to help folk optimize their skin until they can get to their
regular schedule. Online based virtual beauty service will become easier for women to book an
appointment with expert consultant, trying to resolve all kind of issue of problem. L’Oreal will
use this innovative idea and implementing within business processes.
SWOT analysis
SWOT analysis is based on the tool or platform for building an effective strategies in
business improvement. Usually, SWOT stands for Strength, weakness, opportunities and threats.
It helps for business to identify suitable areas in which satisfying particular need or requirement
of client.
Simply- Virtual beauty service will launch by L’Oreal in UK marketplace and many clients
will engaged with the service of core professional in area of business consulting (Salins, Mendon
and Aithal, 2019). Beauty advice is to assists the enterprise in building a solid brand in order to
gain more competitive advantage in global marketplace, this will possible due to innovative idea
as “Virtual Beauty Service” that will implement within organizations.
Here, it has summarised about the result of SWOT analysis that was conducted on the behalf of
“virtual beauty services”.
Strength
One of the core strength lies in the power of beauty consultant and their team members,
providing the best quality of “Virtual beauty service” of their potential client. It became consider
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as the most suitable approach in order to maintain position and attract a lot of client through this
innovative services in global marketplace.
Weakness
As a new “Virtual beauty service” provided through online medium, L’Oreal have
decided to operate their firm like this and influencing more consumers. Sometimes, it might take
some time for enterprise that will break into appropriate manner. But certain level, it may
generate as major weakness.
Threat
Some of threats that are basically going to face by L’Oreal during “Virtual beauty
services” (Santos, Au-Yong-Oliveira and Branco, 2018). It should consider some unfavourable
government policies that will increase a lot of complexities. Nowadays, the arrivals of alternative
competitors with location of operation and new trends that will affect on the business. It is hardly
anything L’Oreal could do better to eliminate such kind of threats.
Opportunities
The opportunities in the virtual beauty service that help for promising despite high level
of competition. In fact, it will increase the popularity of L’Oreal enterprise through Virtual
beauty service in global marketplace (Chen and Dermawan, 2020). During Lockdown, L’Oreal is
always focused on the innovative idea so that they have launched this concept to engage with
more consumers. In order to strive to be leading ones. In this way, it can easily identified that
greater opportunities influencing the large number of consumers towards innovative beauty
services.
RECOMMENDATION WITH JUSTIFICATION
As per analysis, it has been identified the innovative idea regarding “Virtual beauty
Service” provided by L’Oreal enterprise to their potential consumers. It is considered as great
opportunities for organization to improve their entire business performance and efficiency.
Sometimes, it will support for increasing the popularity in global marketplace (Salins, Mendon
and Aithal, 2019). This can possible through innovative idea such as Virtual Beauty Service. On
the basis of justification, it has been summarised that consider innovative idea as priorities which
will help for L’Oreal in order to achieve their desirable goal and objective.
Recommendations
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 Loyalty program and punch cards- Once any clients that like Virtual Beauty services,
keep them coming back to participate with session. So as providing the opportunities to
engage as members and offers loyalty care (Salins, Mendon and Aithal, 2019). In case, if
they can gain join the Virtual Beauty Session to provide the something extra facilities,
make advice, tips according to them. This kind of loyalty program will provide the many
more offers, discounts on the different beauty items, when they are joining again virtual
beauty session.
 Virtual Beauty service promotions- Every consumer loves a good idea so that company
will promote the better service among client. In this way, it will get new clients and want
to join Virtual beauty session, engage with consultant. For First time, all new clients get a
special price. Sometimes, it will give as free makeup tips, recommendation of most
suitable beauty cream or items.
 Share promotions on social media- it has been suggested to company that need to use
social media as platform or tool for purpose of promotion (Santos, Au-Yong-Oliveira and
Branco, 2018). This will help for targeting the potential consumers who really want to
attract Virtual Beauty service during Lockdown. Social media platform that have
available to anyone. Additionally, Facebook, intagram, twitter will help to get out of
world and create as special image of service among existing clients. That’s why, it is to
be considered as important aspects that help for increasing the visibility of “virtual
Beauty service” across globe.
 Use Retargeting Ads- this is another important method or technique that will help for
business a lot. If some women comes to check the website and search around for better
beauty tips, products and services (Salins, Mendon and Aithal, 2019). At that time, it will
easily identify the Virtual Beauty Service, which is not only providing the best quality of
services. in this way, it has been recommended to adopt by enterprise to target the
particular audience and giving essential detailed about beauty products, makeup tip and
son on.
From above analysis, there are various kind of recommendation or suggestion implementing
within business processes. These are not only improving the business condition in term of
growth and development but also establishing a strong connection with potential consumers,
maintain loyalty. Afterwards, Existing client will be taken Similar Virtual Beauty service
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through L’Oreal while engaging a good coordination with consultant. According to
recommendations, it has been justified that promoting the awareness among clients so that they
can easily get make up tips, products services through company.
CONCLUSION
From the above proposal it has been summarized that innovation is extremely important
for enterprises as it helps them to enhance their productivity, sales, revenue etc. it further helps
them in maintaining overall loyalty of their current customers, attract new customers. Innovation
is one of the best ways though which customers interest within brand can be maintained it is one
of the best ways though which any kind of situation can be tackled by organizations. It has also
been concluded that it is important for enterprises to think of innovative products and services or
bring innovation within their organizational processes because it can directly help them to
increase their operability and productivity. Introduction of virtual beauty service can help them
in making it much easier for customers to avail beauty service for taking care of their skin. It has
been observed that in order to introduce new innovative product, service or process, enterprises
need to focus upon adopting an appropriate innovative theory and process so that innovative idea
can be developed in an appropriate manner.
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REFERENCES
Book and Journals
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Hall, S., 2017. Innovative B2B marketing: new models, processes and theory. Kogan Page
Publishers.
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designing smart product service systems: Case study of smart beauty service. Advanced
Engineering Informatics. 40. pp.154-167.
Liu, L.L., 2020. Linear Model Predictive Control for Physical Attractiveness and Risk:
Application of Cosmetic Medicine Service. Mathematics. 8(6). p.975.
Nambisan, S., and et. al., 2017. Digital Innovation Management: Reinventing innovation
management research in a digital world. Mis Quarterly. 41(1).
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and Education (IJCSBE). 3(2). pp.79-90.
Santos, R., Au-Yong-Oliveira, M. and Branco, F., 2018, September. L'Oréal and its innovative
differentiated positioning process in the beauty industry. In European Conference on
Innovation and Entrepreneurship (pp. 717-XII). Academic Conferences International
Limited.
Von Krogh, G., Kucukkeles, B. and Ben-Menahem, S.M., 2020. Lessons in Rapid Innovation
From the COVID-19 Pandemic. MIT Sloan Management Review. 61(4). pp.8-10.
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