International Marketing Campaign for L'Oréal in Saudi Arabia

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Added on  2022/08/24

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AI Summary
This report analyzes L'Oréal's marketing strategy, specifically focusing on the Saudi Arabian market for its cosmetic products. It begins with an executive summary highlighting L'Oréal's objective to launch a new product globally, with Saudi Arabia as a key target. The report then delves into the cosmetic market in Saudi Arabia, emphasizing the high standard of living, the young and image-conscious population, and the increasing demand for natural and halal cosmetic products. The report cites statistics on market growth and consumer preferences, including the rising number of working women and their impact on disposable income. The core of the report presents an international marketing campaign plan, outlining the target audience (middle-aged women), campaign objectives (promoting L'Oréal's new product), budget considerations, media strategy, and campaign approach (promoting halal products). The report concludes by reiterating the potential for L'Oréal's success in the Saudi Arabian market, particularly with halal and natural product offerings, and their contribution to the growth of the cosmetic market. The report includes references to support its findings.
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Running head: GLOBAL MARKETING
GLOBAL MARKETING
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1GLOBAL MARKETING
Executive Summary
L’ORÉAL is a French company which sells beauty and cosmetic products. It has its own
brand which is L’ORÉAL Paris at the same time it owns other various top brands. They are
going to launch a product which they want to sell on a global basis. In this study, Saudi
Arabia has been chosen as a country where L’ORÉAL wants to sell their product. This study
focuses on the environmental and cultural factors which might affect in the selling of their
product.
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2GLOBAL MARKETING
Table of Contents
Introduction................................................................................................................................3
Cosmetic Market- A Study over Saudi Arabia..........................................................................3
International Marketing Campaign Plan....................................................................................4
Conclusion..................................................................................................................................5
References..................................................................................................................................6
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3GLOBAL MARKETING
Introduction
In this study Saudi Arabia has been chosen as a country. The product is L’ORÉAL
Paris Multi-Active Essence Cream. This is one of the top brand in the cosmetic industry.
This is a French company which has some of the fabulous brand in its portfolio. It sells
product through its own brand. Cosmetic industry in Saudi Arabia is growing
rapidly(Alhedhaif,Lele & Kaifi, 2016).
Cosmetic Market- A Study over Saudi Arabia
The standard of living of rich in Saudi Arabia is very high than any other rich country.
This is the main factor of growth of cosmetic product. This industry is mainly driven by
young population because they want to get attractive appearance and look good. The country
is highly conscious about the product ingredients. There is a significant demand for natural
cosmetic product in Saudi Arabia. This demand for the cosmetic product helps the local and
international market to make progress of innovative product so that it can withstand market
competitiveness(Poranki & Perwej,2014). Since the number of working women in Saudi
Arabia is increasing day by day, this lead to an increase in disposable income which boosts
the sale of branded cosmetic product. According to the Goldstein Research, Saudi Arabia
cosmetic market is to expand at a CAGR of 11.4 per cent during the time period 2017 to
2025. Again, it has been projected to touch USD 6.8 billion by 2025 which owes to grow
market for product which are natural(Tambo,Almeer & Alshamrani,2016). The study for
Saudi Arabia cosmetic market industry shows the trend for growing market for personalized
and natural product in this country. For example, there is an increasing demand and interest
for halal costmetic product. This is because of the reason that Saudi Arabia mainly
establishes Muslim population(Izberk-Bilgin & Nakata,2016). Consumers are increasingly
using halal product . The popularity of this product has been increased. Not only Muslim
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4GLOBAL MARKETING
community uses these products, Non-Muslim population also use such products. This is the
major reason for the growth of halal beauty products and vegan beauty products in the Saudi
Arabia. The report explains that the main driver of the cosmetic market in Saudi Arabia is
high disposable income because of increasing number of women who are working. Global
brand of cosmetic products are strictly related with social status so they are extremely
desirable in Saudi Arabia. In Saudi Arabia, there are massive group of consumer and they are
from different cultures that may be the result of different consumer behaviours which creates
great challenge for market to cultivate their products in Saudi Arabia.
International Marketing Campaign Plan
Target Audience
Target audience the middle age women in the country.
Campaign Objectives
The main purpose of this campaign is to promote L’ORÉAL’s new product.
Budget
A budget has been fixed for the implementation of the product.
Media Strategy
Advertisement will be telecasted.
Campaign Approach
The approach should be to promote halal products in the market.
Measurement of Advertising Effectiveness
Effective advertisement will be made so that it can reach to the targeted audience.
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5GLOBAL MARKETING
Conclusion
A new product can be launched which is L’ORÉAL Paris Multi-Active Essence
Cream. This product will be sold globally. This will be made of halal and another cream will
be made of natural herbal ingredients. Since people of Saudi Arabia prefer halal and vegan
product it will be beneficial if this can be launched. This will help in growing the cosmetic
market industry in Saudi Arabia which will provide competitive advantage to the existing
market of cosmetic products.
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6GLOBAL MARKETING
References
Alhedhaif, S., Lele, U., & Kaifi, B. A. (2016). Brand loyalty and factors affecting cosmetics
buying behavior of saudi female consumers. Journal of Business Studies
Quarterly, 7(3), 24.
Izberk-Bilgin, E., & Nakata, C. C. (2016). A new look at faith-based marketing: The global
halal market. Business horizons, 59(3), 285-292.
Poranki, R., & Perwej, A. (2014). The buying Attitudes of Consumers of Cosmetic Products
in Saudi Arabia. Retrieved on Noveber, 15, 2015.
Tambo, E., Almeer, H., & Alshamrani, Y. (2016). Health and Beauty Cosmeceuticals
Industry and Market Expansion in Saudi Arabia. Pharmaceut Reg Affairs, 5(172), 2.
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