Comprehensive Digital Marketing Plan and Analysis for L'Oreal Company

This report provides a comprehensive analysis of L'Oreal's digital marketing strategies. It begins with an introduction outlining the scope and objectives, followed by an environmental analysis using the PESTLE framework to assess political, economic, social, technological, legal, and environmental factors impacting L'Oreal. The report then critically assesses L'Oreal's digital and physical store presence, comparing their strengths and weaknesses. A detailed digital marketing plan is presented, focusing on building multi-channel capabilities for the luxury and active cosmetic divisions. Finally, the report discusses methods for evaluating, monitoring, and measuring the effectiveness of digital marketing efforts. The report concludes by summarizing key findings and recommendations for L'Oreal's digital marketing approach, offering insights into leveraging digital channels for enhanced market presence and profitability.

Digital Marketing

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Environmental analysis of L'Oreal ........................................................................................3
TASK 2............................................................................................................................................6
Critical assessment of L'Oreal along with the comparison between digital and store presence.
................................................................................................................................................6
TASK 3............................................................................................................................................7
Digital Plan for L'Oreal for building multi channel capabilities in luxury and active cosmetic
division...................................................................................................................................7
TASK 4............................................................................................................................................9
Methods for evaluation, monitoring and measuring effectiveness of digital marketing........9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
It is a process where product and services are promoted in order to gain profit at market
place. In this process marketing of goods and services are done through digital technologies such
as display advertising, mobile phones and many more. L'Oreal is chosen as a base company in
this report which deals in cosmetics all over the world. Along with this, the headquarter of this
company in Clichy, Hauts de seine, France that is founded in the year 1909 by Eugene Schueller.
L'Oreal company deals in various products such as sun protection, perfume, hair colour, hair
care, make-up, skin care and so on. This report discussed about the various opportunities, impact
and challenges of digital marketing as well as critical assessment of both physical and digital
stores of L'Oreal are going to be covered. At last, evaluation, monitoring and measuring of
effectiveness of digital marketing has been discussed.
TASK 1
Environmental analysis of L'Oreal .
Nowadays, mostly companies opt digital Marketing refers for promoting their products
and services at competitive market place as this technique aids them for attracting new customers
and retaining old customers for longer period of time (Baltes, 2015). In relation to this, various
companies adopt different marketing channels which includes search engine, social media,
mobile apps, websites, and so on. Along with this, the main objective of using digital
technologies is to influence more consumers for purchasing their products whereas gives extra
services or offer to their existing customers for building positive brand image at market. In
context to L'Oreal, they opt digital marketing for enhancing their sale and profit by capturing
large amount of market share (Chaffey and Ellis-Chadwick, 2019). In addition to this, L'Oreal
adopt this high tech digital techniques for examine a companies internal and external factors as
it helps them to identify the factors who directly affects on performance of an organisation.
Furthermore, they use PESTLE analysis so that company can examine their environment factors
effectively. The PESTLE analysis of L'Oreal are mentioned as below:

PESTLE Analysis:
Political factors: L'Oreal is the worlds largest cosmetic industry which deals in variety of
products and they provide their services and goods across the whole wide world. So, it is
necessary for them to follow each and every single governmental rules of different country. Also,
company should provide right information to their customers regarding their services and
products. In relation to L'Oreal, its manufacturing company is in Paris so it is compulsory for
them to follow the governmental rules and regulations of France. This is because, it directly
affects on their image and growth.
Economical Factors: In this factor, changes in price of fluctuation in price create a direct impact
on growth and profit of L'Oreal (Chaffey and Smith, 2017). The main reason of fluctuation of
price is growth of substitute products. In addition to this, L'Oreal brings changes in price of their
product at the time of expansion of company.
Social Factors: In this factor contain values, beliefs, attitudes and many more. In context to
L'Oreal, it is considered that company should provide relevant and right information to their
potential customers, with the help of digital technology. The reason behind of this factor is do
not hurt the sentiments and break trust of customers at market place.
Technological Factors: Nowadays, in every company technologies plays an essential role as
this helps them to maintain sustainability at market. Along with this, technological factors aids
L'Oreal for expanding their business cross the world so that they can achieve their targeted goals
and objectives as well as increase profit effectively (Dodson, 2016). Digital marketing is play
very important role in L'Oreal because they innovate unique product by which they attract ample
amount of customers towards their brand and create positive brand image at competitive market
place.
Legal Factors: In this factor says about the legal formalities which is necessary for every
company to follow it. In the present context of L'Oreal, company might follow some act such as
Fair Packaging And Labelling Act (FPLA) and Federal Food, Drug, and Cosmetic Act (FFDCA)
in order to protect customers from harmful factors at the time of manufacturing of products.
Economical Factors: This factor plays very crucial role for growth and image of L'Oreal
company as they adopt eco friendly packaging so that they keep clean, healthy and safe
environment. Simultaneously, this factor helps company to create positive brand image at
competitive market place and increase their profitability as well as productivity.

From the above factors, it has been analysed that, it is necessary for L'Oreal to use theses
factors effectively as it aids them to expand their business at global level (Järvinen and
Karjaluoto, 2015). With the help of this factors, company get various benefits for maintaining
sustainability at market.
 Opportunities in Digital Environment: In L'Oreal digital marketing plays very
essential role as it helps them to expand their business at global level. At the time of
expansion, they get various opportunities such as capturing large amount of market share,
create competition and so on. Along with this, digital technology is a techniques by
which company promote their product and generate awareness so that they attract various
customers towards their brand. L'Oreal use social media for promoting their product as
people mostly use social media so it is easy for the organisation to provide information
regarding their product at large amount of customers across the world.
 Challenges faced in Digital Environment: L'Oreal, company select big data solution,
for gathering informations about their product,customers, employees and services. In
addition to this, Company opt various software's for collecting an informations such as
Microsoft big data solution, Google Cloud Platform, and so on. There are some
challenges that is faced by L'Oreal which are mentioned as bellow:
1. Finding right team: Companies opt digital marketing alteration as their is need of
expertise. In context of L'Oreal, for these modification company adopt some
technologies like IOT, artificial intelligence and many other. In addition to this,
company wants right team so that they provide right and exact information about their
product and services to their potential customers with the help of digital technology.
2. Understand the buying behaviour of digital customers: Nowadays, customers
mostly used social networking sites for purchasing product and services as they think
company provide many offers on it (Kannan, 2017). Along with this, for satisfying
customers expectation company get motivated for producing new and innovative
products.
 Impact of Digital Environment: There are some factors which creates positive impact
on the company are given as below:
1. Power of Influencer: L'Oreal company use social media for promoting their
product and services. As per the analysis, L'Oreal gain more profit and improves

brand image in comparison to its competitors. In reference to L'Oreal, they used
digital channel for influencing customers to purchase their products at market
place. Along with this, its necessary for company to get good influencer for
garbing an attention from their potential customers (Karjaluoto, Mustonen and
Ulkuniemi, 2015)
2. New platforms: L'Oreal use Instagram, Twitter, Facebook and others for
promoting their products. With the help of this, L'Oreal use these platforms so
that they can attract more customer and expand their business at global level.
TASK 2
Critical assessment of L'Oreal along with the comparison between digital and store presence.
Digital marketing helps L'Oreal to maximise their profit as well as growth at competitive
market by offering variety of product and services in good quality. They use different type of
marketing channel for attracting more customers and retaining old customers at long period of
time. The type marketing channels are websites, search engine, social media, email and many
others. Along with this, it aids companies to get reviews or suggestion from customers so that
company can improve their product and services accordingly. Furthermore, these technique
expand the business operation at international scale (Patrutiu-Baltes, 2016).On the other hand,
in offline marketing there is lot of chance for switching the brand as they believe they do not
share or express their experience about particular product and services. There are some
differences in traditional marketing and digital marketing which are mentioned as below:-
Basis Digital Marketing Traditional Marketing
Potential for growth This techniques is very useful
for company as they can easily
capture large amount of
market share by the medium of
mobile phones and email.
Trough these they can provide
various information easily as it
is for company to assess
company and employees. In
In this marketing, there is an
involvement of low degree of
potential growth. This is
because there is an limited
scope of reach to their
potential customers.

context to L'Oreal, company
can enhance their brand image
and generate awareness
regarding product and services
at competitive market place.
Investment It involved less or no
investment for reaching to
customers. So, this is
beneficial for L'Oreal to opting
this marketing.
Whereas it carrying huge
investment for reaching to
potential customers. In context
to L'Oreal, this techniques
covers huge cost in order to
achieve their target.
TASK 3
Digital Plan for L'Oreal for building multi channel capabilities in luxury and active cosmetic
division.
Digital Marketing plan:
With the help of past analysis of the performance of L’Oreal, managers of the company
decides to use digital marketing strategies (Ryan, 2016). For this, management team as well as
marketing team of the company develop plans in order to promote their brand through digital
media. Company adopt digital marketing strategies in their organisation to gain advantages at the
competitive marketplace.
Business initiative
In order to capture large market share, it is very important for the marketing team of
L'Oreal to adopt latest strategies for performing their functions effectively. Company uses
traditional strategies for marketing, but according to the current situation, management team
decides to opt high tech technologies for maintaining the growth as well as goodwill at the
marketplace (Stephen, A. T., 2016). In addition to this, management of team L'Oreal will be able
to grab attention of ample number of customers. This is the main reason L'Oreal adopted digital
marketing techniques.

Situational analysis
Strength Weakness
 On the basis of digital marketing,
L'Oreal can improve their performance
at the marketplace. It becomes easy for
the company to capture large market
share in less period of time.
 L'Oreal require huge number of funds
in order to provide training sessions to
their employees. It is not easy for them
to adopt digital technology easily as
they use traditional method for
marketing.
Opportunity Threat
 L'Oreal adopt digital marketing
strategy so that they can attract large
number of customers across the world.
Thus, it gives an opportunity for the
company to expand its market share all
over the world.
 In context of L'Oreal company have
numerous competition which affects the
whole profitability of the company.
Main competition for the companies are
Maybelline, Mac and so on.
Target market and consumers:
L'Oreal headquarter is located at France but provides its products across the whole
world. Traditional strategy of marketing hardly influence large number of customers, thus it
reduces the profitability, market share as well as goodwill of the company (Todor, 2016).But on
the other hand, with the help of digital technology company grab the attention of individuals and
provide information about the products offered by them within less period of time. L’Oreal target
teenage and adult girls, reason behind this is that they can easily influence by the products and
services offered by them.
Budget
As per the analysis, it has been examined that, as comparison to traditional approach
digital marketing not required huge fund. (Yasmin, Tasneem and Fatema, 2015). Along with this,

it is essential for the management team to provide development and training sessions to their
employees for utilising the human resource in an effective manner. For this, company requires
approximately £20000.
Market Strategy
L’Oreal use penetrative technique in order to attract large number of customers.
Furthermore, luxury cosmetics product and active cosmetic products adopt penetrative technique
for pricing. Company set low prices for their products as compared to other competitor
companies, with the help of this they will be able to increase their profit margin.
Marketing Channels
In order to promote their products L’Oreal adopt digital platforms, social media platform
as well as celebrity endorsements (Baltes, 2015). Company promote their products on Twitter,
Instagram, Facebook and more more. With the help of this, company attract ample number of
customers towards their brand which increases the profit margin as well as goodwill at the
competitive marketplace.
TASK 4
Methods for evaluation, monitoring and measuring effectiveness of digital marketing.
This is important for companies to measure, evaluate and monitor the functionality of the
organisation. In case of L 'Oreal, the various methods used for these purposes are listed below-
Evaluation of effectiveness of digital marketing
L'Oreal has formulated different strategies for efficient functioning of the company. This
company evaluates the running of it's operations by following ways-
Identification of targets and goals
In L'Oreal different strategies are formulated for good functioning of all business
operations (Chaffey and Ellis-Chadwick, 2019). There are goals and objectives of L'Oreal which
have to be achieved in given time. It is important for the company to achieve the targets and
goals of the company in less time in order to earn profits.
Re-examine profile of target customers

After the evaluation of goals and targets of the company another responsibility of digital
marketing is to review the profile of potential customers. The target and potential customers of
this base company i.e., L'Oreal are young girls and and middle aged women who want to
enhance their beauty. L'Oreal advertises it's cosmetics and creams on social media and websites.
Evaluation of messaging strategies
Messages are sent to customers for effectively promoting the new cosmetics or creams of
L'Oreal. These messages help in examining the effectiveness of marketing of products. This is
related to different kind of advertisements and messages that are attracts customers.
Evaluate return of interest (ROI) of digital marketing
Digital marketing evaluate the performance of company in order to outcome of return of
interest(ROI). Along with this, it contains two major elements which are examined for this
purpose :-
 The total finance required for launching digital marketing campaigns.
 The effectiveness of marketing in terms of finance (Chaffey and Smith, 2017).
Monitoring effectiveness of digital marketing
In L'Oreal, manager of the company evaluate performance of it's operations. There are
some ways which helps manager to for evaluating performance that are listed as below-
Engagement of customers towards L'Oreal – In company marketing function aids is
encouraging both clients and customers for actively participate in business activities. This helps
in maintaining healthy and good bond between employees and managers. This helps to create
awareness of products and services of L'Oreal in marketplace.
Value to conversation – The marketing department has to attract more number of
customers and through digital marketing of products, the brand value can be increased easily in
front of customers.
Measuring effectiveness of digital marketing
Their are some ways which is opt by L'Oreal for measuring effectiveness of digital
marketing that are mentioned as below :-
Number of visitors on website- This is defined by the number of people who have visited
website of L'Oreal in an hour (Dodson, 2016). The managers can easily evaluate and analyse

interest of people towards products of L'Oreal by knowing how many people are visisting the
site.
Traffic by channels- The different type of people have various ways of searching the product of
L'Oreal on internet. These are listed below-
Direct visitors- This includes people who already knows about L'Oreal products and
services. These individuals reach website through URL or web browsing.
Search – It includes those customers who have some reviews and queries regarding the
services and products of company.
CONCLUSION
As per the above report, it has been analysed that, in every business digital marketing
plays very crucial role because this helps companies as well as nation to develop themselves
and achieve long term target. Along with this, company use digital technologies for attracting
customers towards their brand and enhance productivity and profitability of company. In this
above report, PESTLE analysis of company and differences of traditional and digital
marketing have been evaluated. Lastly, in this report measuring,evaluating and monitoring
effectiveness of digital marketing has been examined.

REFERENCES
Books & Journals
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