Marketing Essentials Report: Analysis of L'Oreal's Strategies

This report provides a comprehensive analysis of L'Oreal's marketing strategies, covering key aspects such as the roles and responsibilities of marketing functions within the company. It delves into the comparison of L'Oreal's marketing mix with that of a beauty giant, evaluating elements like product, price, place, and promotion. The report explores the relationship between marketing and various organizational functions, including operations, human resources, research and development, customer service, information technology, and finance. Furthermore, it assesses the impact of these relationships on L'Oreal's overall performance and success. The report concludes with an evaluation of different marketing plans for L'Oreal, providing insights into the company's approach to market competition and customer engagement. The report utilizes academic sources to support its findings, providing a well-rounded analysis of L'Oreal's marketing practices.

Marketing Essentials

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
LO 1.................................................................................................................................................1
P1 Key role and responsibility of marketing functions...............................................................1
P2 Roles and responsibilities of marketing in relation with wider organizational structure ......2
LO 2 ................................................................................................................................................4
P3 Comparison of marketing mix of L'Oreal and Beauty giant..................................................4
LO 3...............................................................................................................................................10
P4 Produce and evaluate marketing plans for L'Oreal...............................................................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Market essentials Plays a vital role to achieve the target of the company as they help the
company to bring new customers by analyzing the market with help of 7 P's. It also works to
identify what customers are actually in need and to increase the purchasing power of the
company they modify the products according to customers expectations so that customers
become loyal towards the brand. Present study is based on the company L'Oreal which is a
French personal care company founded in the year 1909 by Eugene Schueller in Clichy, French.
It is a cosmetic industry and with help of marketing essentials company has achieved €26.93
billion revenue in the year 2018. The study will include the key roles and responsibilities of
marketing function of L'Oreal. Further roles and responsibilities of marketing with wider
organizational structure of L'Oreal will be explained in the report. Further study is based on
Comparison of marketing mix of L'Oreal and Beauty Giant. At last evaluation of different
marketing plans for L'Oreal have been studied in the given report(Baker and Saren, 2016).
LO 1
P1 Key role and responsibility of marketing functions
There are some roles and responsibilities that marketing plays in the survival of the
company. In order to understand and to meet the customer expectations L'Oreal company need
marketing that can help the company to reach the message to their customers that are:-
 Listening to the customer needs:- In order to make the marketing strategy it is very
necessary for the L'Oreal company to listen what are the needs of the customers as well
as to get close and understand. Its is the function of the marketing department to make the
important means to get the customers' feedback that can be done by making internal
channels by the company with the help of surveys to get the information regarding the
sales team as well the departments which are close to the customers and by making the
channels which are outside the company by creating activity in the social media in order
to better understand the needs of the customers. It is necessary to get closer the customers
and listen to the needs of them. To know what is actually there demand is and what are
their expectations related to the product and also receiving the feedback from them timely
and working on it with due respect. This can be done internally as well as externally,
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internally by creating surveys or capture information of the sales team which helps the
company in the future. Externally by creating social networks(Bhatt and Gupta, 2018).
 Monitoring the competitors:- In order to achieve the competition the L'Oreal company
should realize what is the actual position of the company. With the help of marketing the
company can see the competition in order to identify the competitors mistake so that the
company will not be able fall in that which can result to growth of the company. It is very
important to know the competition and position of the company with the relevant
companies. So from marketing team one will learn the importance of them. Marketing
team keeps active the company and helps is getting the first mover advantage to the
company. L'Oreal also have a prominent marketing team which helps it to achieve the
required goal(Campbell, Martin and Fabos, 2018).
 Working on brand values :- A brand plays a very important role for the company to
represent its product as well as services. The responsibility of the marketing function is to
create brand image and ideas that can communicate brand value in the best possible
manner.
 Coordinating the efforts with the marketing partners:- In the business marketing
there are various contributors that are journalists, publishers as well as designers and
consultants. The work which is done by these contributors should match the company's
objectives(Hair Jr and et.al, 2015).
 By innovating:- The company should provide higher offer everyday with this customers
will get surprised and the demand gets high. It is the responsibility of the marketing
department to work on the promotions, improving retaining techniques for the customers
as well as actions in order to achieve the objectives of the company in an effective and
efficient way(Malhotra, 2015).
P2 Roles and responsibilities of marketing in relation with wider organizational structure
L'Oreal is a personal care company and belongs to cosmetic industry so, marketing plays
an important role to make the organisation reached its goals as competition in increasing and
different marketing research can help the company to identify the opportunity and grab it in short
period so that they can sustain for longer duration in this competition. Marketing plays an
important role for product development strategies because digital technologies is increasing the
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competition as customers are willing to purchase the products online by just sitting on there
couches and having variety of options with different ranges. In such situation L'Oreal is making
different promotional strategies to make there product recognized on social media. By
advertising the products increases the brand image and value of the brand in eyes of the
customers so L'Oreal is taking help of advertisement to increase the sale of there
products(Morgan, 2016).
 Marketing related with operations:- Operations plays an important part in marketing to
increase the production level of the firm. It also helps the companies to have transparency
so that they are able to compete in market and can increase the profitability of there
business. A strong marketing operations results in good production according to demand
coming from market which aims to fulfill customers need on time. L'Oreal is having good
marketing operations which results in increasing production level of the
firm(Muralidharan and Raval, 2017).
 Marketing related with human resource:- the relation of marketing with that of Human
resource is very important in motivating customers positive behaviour towards the
product offerings. L'Oreal is targeting the customers who are willing to spend money for
branded products for that Human resource department of the company is working on
behavioral changes of the customers as they are taking feedback of customers and
knowing whether they are satisfied with the products or not. Accordingly, company is
making changes in the product as well as marketing Strategies. For achieving the targets
of the company human resource of L'Oreal have to be very strong(Nirschl and Steinberg,
2018).
 Marketing related to research and development:- Research and development is very
important for growth of the company as it helps in improving the business strategies. It
includes research of the market where customers are in need of the product and
developing such products which results in customers satisfaction. If customers are not
satisfied then accordingly finding weaknesses and developing new and improved
products. L'Oreal is constantly making changes in there products so that customers are
satisfied with there product offerings and this will help in expending there market(Pike,
2015).
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 Marketing related with customer service:- Customers service includes inquiry related
to products offered to customers or solution of various problems that customers may face
during the use of products and services. Marketing and service department have to work
together as good customer service helps in doing marketing of the company and make
your product recognized in market. As competition is high L'Oreal is giving good
services to the customers which results in trust build up and increases the value of brand
in market(Purvis, 2015).
 Marketing related with information technology:- For increasing the sale of L'Oreal
both marketing and information technology plays an important part as they both are inter-
related to each other. Information technology plays an important part for advertising the
product at low cost and at broader terms with help of E-commerce.
 Marketing related with finance:- For increasing the efficiency of the business it is
necessary to have good financial condition of the business so that objective of the
company can be achieved. If there is no finance then it is hard to determine the sources of
income, and without advertising and doing marketing product will not be recognized and
it will become tough for the company to sale there products. L'Oreal have good financial
management because of this reason only they are able to have such good marketing
strategies(Rowley, 2017).
LO 2
P3 Comparison of marketing mix of L'Oreal and Beauty giant
Marketing mix are set of actions that company used to promote there products in market
so that firm can achieve its objective and is able to target the potential market. Marketing Mix
have 7 P's which company have to control so that it can be easy for the firm to make there
customers influenced towards there offerings(Stern and Porr, 2017).
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Product:-
L'Oreal
 L'Oreal is having wide portfolio of there brands related to all beauty and cosmetic
products as it is a Cosmetic industry. There different division are :- L'Oreal Luxe,
Consumer Products division, Active cosmetic division, professional product's division
and The Body shop(Baker and Saren, 2016).
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 These divisions are having different products like eye-liner, mascara, nail paints, lipstick,
shampoo, conditioner, serum, hair color etc.
 L'Oreal is innovating such products which can match the customers preferences and they
can have loyal consumers who will retain for longer duration.
 Products are available at different price range and at different sizes so that customers can
choose to accord to there need.
 Before launching the products in market L'Oreal is testing the products as per the
international testing standards where they proved that they have not harmed any animal
in this process(Campbell, Martin and Fabos, 2018 ).
Beauty Giant
 Beauty Giant is selling products related to men and women toiletries from different
brands which are renounced. There products are not their own so, they are not selling
their own products in market.
 They have launched new anti-aging product with name 'Forever young' and it will be
targeting 30's market segments as the company thinks this type of product has not
reached the market yet and will create a value in market.
 They imagine this product as market leader in near future as most of the people of age
above 30 expect such product in market. So they expect that this product will be fulfilling
the needs of the customers in near future.
 Company is expecting that this anti aging product will be fitting consumers expectations
and will generate revenue for the firm(Hair Jr and et.al, 2015).
Price:-
L'Oreal
 L'Oreal is the global leader for cosmetic brands and is making efforts to distribute there
products to retail channels so that it easily available for the mass market. They are
earning a huge profit with help of these channels.
 Many professional products are available at different salons so that customers are ready
to pay for these products as they are not at high price(Malhotra, 2015).
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 Luxe division products are online available and customers can get these products at any
cosmetic store or super market as well. These products have a premium price and due to
its quality customers are ready to pay for it as it is a known brand.
 L'Oreal is penetrating the market with different price levels and always bring innovation
in there products(Morgan, 2016).
Beauty Giant
 Company is pricing there new products in such way that all category people are able to
afford them.
 As customers have variety of choices so, they are targeting there customers on pricing
basis so that they can compete to other companies who had already taken position in
market.
 Customers are usually ready to pay for good valued products so company's focus is to
provide good quality product at a reasonable price(Muralidharan and Raval, 2017).
Place:-
L'Oreal
 According to different product divisions L'Oreal is providing there products all over the
world.
 For having strong market presence they are working on different distribution channels so
that there products are easily available to the customers.
 L'Oreal is preset in 130 countries in 5 continents where the products are available at
different stores, retail outlets, pharmacies, salon and even at E-commerce website. Garnier is the brand which is available at various retail shops and supermarkets as it
easily targets the mass market(Nirschl and Steinberg, 2018)
Beauty Giant
 Company is having 50 branches all over UK and sell there products as renounced brands
all over the world.
 Company is having good name in the market and is able to target potential customers all
over the world.
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 They are innovating new products according to customers need, like they are coming up
with a new anti aging product which they are distributing at all possible channels.
 They are selling there products at different distribution channels like malls, High streets
and also at there online websites with help of which they are to target there potential
customers as it become easy for them to shop(Purvis, 2015).
Promotion:-
L'Oreal
 They are promoting there brands at various levels in different countries and there slogan
of promotion is “Because we're Worth It” which help them to attract different customers
worldwide.
 They have brand ambassadors like Cheryl, Jennifer Lopez etc which help them for
different campaigns so that they can attract different customers from worldwide to use
there products with help of digital advertisement.
 L'Oreal have done various CSR commitment like Project care for child education, Young
women in science for helping women to achieve their dreams and Beautiful beginnings to
provide skilled training to women regarding beauty salons. These activities helped
L'Oreal to acquire market all over the world(Rowley, 2017)
Beauty Giant
 Company is advertising about there new anti aging product with help of magazines, TV
ads and also with help of online marketing.
 They are giving tips that how the product will help the people of above age 30 to look
young by directly communicating to the customers.
People:-
L'Oreal
 People working at L'Oreal are very focused and dedicated to take there brand at higher
level of growth. Approx 86000 employees are working for L'Oreal.
 There each and every employee is well trained in influencing customers to purchase the
product and maintain the companies' reputation in market.
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 There people are there strength as they have skilled people who work to enhance the
quality of the product and they always come up with innovative ideas.
Beauty Giant
 There people are very innovative and always look for new opportunity in market.
 They work together and invented anti aging products with help of research and
development which brings new scope for the business(Stern and Porr, 2017).
Process:-
L'Oreal
 L'Oreal is involved with different salons, retailer for expanding there market all over the
world.
 There products are checked before exporting it to the market that is, Research and
development is there where different test have been conducted to analyse that no animal
extract is used in there products.
 There packaging also includes environment friendly materials so that they can contribute
somewhat in social welfare(Baker and Saren, 2016)
Beauty Giant
 They have done proper research and developed a new product according to customers
need.
 They have made good contacts with retailers and also engaged in online marketing so that
there customers can easily get the products.
Physical evidence:-
L'Oreal
 There different packaging style which is making there product look different from others
is physical evidence for L'Oreal.
 There packaging also involve eco-friendly material that also make its physical evidence
look different from others.
 There products are available online with good product images of high quality resolution.
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Beauty giant
 They are working on packaging of there products so that they can look different from
other competitors and look attractive.
 There different retail shops and availability at online sites is there physical
evidence(Bhatt and Gupta, 2018).
LO 3
P4 Produce and evaluate marketing plans for L'Oreal
It is very essential part for every firm to evaluate a marketing plan which company can
use to achieve the objective of the firm. These plans can give direction to the firm with help of
which they can target there potential customers(Campbell, Martin and Fabos, 2018).
About the firm:-
Company has 50 branches all over the UK and sell men and women toiletries from
various world renounced brands. They have recently launched new anti-aging products in market
with good research and development.
Vision:- To become market leaders in Cosmetic industry in near future.
Mission:- To help men and women around the globe to express themselves as an individual
personality that aspires to beauty by providing them innovative cosmetics(Hair Jr and et.al,
2015).
Objective:- To make company where all employees are satisfied and are able to attract and
retain individuals having talent.
SWOT analysis:-
 Strength:- A variety of cosmetic products are available with high quality that comes in
luxury brands. There research and development is very good and always innovating such
products which can create value in market(Malhotra, 2015).
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