Principles of Marketing Report: L'Oréal Brand Analysis and New Product

This report provides a comprehensive analysis of L'Oréal's marketing strategies, focusing on the introduction of a new hair styling appliance. It begins with an introduction to marketing principles and then delves into L'Oréal's existing brand values, utilizing Kapferer's Brand Identity Prism to understand its brand identity. The report examines the target market for the new product, employing the STP model for segmentation, targeting, and positioning. It also incorporates the Ansoff Matrix to analyze market penetration, development, diversification, and product development strategies. A PESTLE analysis is conducted to assess the political, economic, social, technological, legal, and environmental factors influencing the product launch. Finally, a comparative analysis with Babyliss is presented, and the report concludes with a summary of the findings and references.

Principles of
Marketing

TABLE OF CONTENT
 INTRODUCTION
 METHODOLOGY
 FINDINGS
 Existing Brand and Brand Values
 Description of Target Market
 Analysis of the New Product
 An Explanation of the New Product
 Comparative Analysis
 CONCLUSION
 REFERENCES

INTRODUCTION
Principle of marketing is
essential for the marketing
strategies and it needs a specific
idea of marketing and companies
can utilize the marketing
principles for promotions of their
products and services. For this
report, L’Oréal organization is
Chosen and it is largest in France
consider as a world biggest
manufacturer which provide high
quality cosmetic, hair and skin
care products..

EXISTING BRAND VALUES
 Kapferer's Brand Identity Prism
This model is given by Jeab- Noel Kapferer in 1996. This model is performing
as a diagram which helps to understand the whole concept of brand and brand identity.
 Physique – Company demonstrates the brand it contain visual features of the brand.
For example, L’Oreal women skincare products basically dedicated to all the women's.
 Personality –L’Oréal products mainly promote by the very beautiful and attractive
personality women to create brand identity.
 Culture – It considers all the countries culture and their values. For example, L’Oreal
mainly focuses on brand excellence, innovation, beauty and expertise.
 Relationship- L’Oréal customers strongly and fully trust on their brand and use the
products and also recommend it.
 Self-image- L’Oreal creates an impressive image of their brand so that company easily
launch new products.
 Reflection- L’Oréal brand reflect as a high valuable and trustable brand which is also
helpful to introduce new products.

ANALYSIS OF THE NEW PRODUCT
 Ansoff Matrix -
 Market penetrations- In this stage, this
matrix consider that how to sell old
products and services to the old customers
 Market Development -In this step,
L’Oreal company plan a strategy that how
to take entry in new market.
 Diversification - This strategy show that
how to company launch new products in
new market.
 Product and Development- In this
strategy, this matrix develop a new
products and services for existing
customers

DESCRIPTION OF TARGET MARKET
L’Oreal is about to introduce a new product name “Hair Styling Appliance
which includes hair dryers, hair strengtheners and curlers.
STP Model
 Segmentation –L’Oreal segments their market according to the products
and recognizes same groups of customers and divides the groups.
 Targeting – To target market company analyze that which group of
audiences are mainly focus on the L’Oreal new brand products. L’Oreal
target young and middle age women’s for their new product. Company
target professional salons and also personal grooming in North America
and Asia Pacific and other countries through online distribution channels.
 Poisoning - L’Oréal make sure that their brand occupies the correct
position and influence the mind of the target audience.

PESTLE ANALYSIS
 Political Factors L’Oreal is about to launch new product that is Hair Styling Appliances in
the market so company need to focus on the political Factors like trade regulations and
foreign trades because company operates all the foreign countries.
 Economical Factors - These factors includes all economic growth changes , inflation,
recession, demand , supply , exchange rate includes.L’Oreal is about the brand extension
in the market so company need to analyze the demand and supply of the products in the
international market.
 Social factors- social factors like religion, cast, culture, family , education , structure and
population.L’Oreall need to consider these factors so that company easily maintain all the
social difference and other discrimination.
 Technological Factors - L’Oreall requires maintaining internet connectivity, social media
platforms, factors so that easily launch new products and customers buy it with the help of
social media.
 Legal Factors -, L’Oreall consider organization law, securities law and other government
law, rules, regulations, policies so that company effectively launch their new products.
 Environmental Factors - L’Oreall includes geographical, ecological, natural
factors.L'Oréal products used worldwide across the whole world all the factors affect
positively and negatively both on the market.

COMPARATIVE ANALYSIS
. L’Oreal Babyliss
 L’Oreal all products are
very high in quality that’s
company is famous
worldwide.
 It is big brands so all the
products very high in price.
 L’Oreal all products are
temperature controlled and
provide many features with
heat setting.
 Babyliss product is lower
quality as compared to the
L’Oreal.
 Less Price of products.
 Company do not provide
temperature control and
heat setting in some
appliances.

CONCLUSION
From the presentation above it can be concluded that the
managers and leaders of organisations do have different
roles and responsibilities which they performed in favour of
ultimate objectives of the entity. In the presentation the
discussion is carried on the roles and characteristics of
managers and leaders highlighting the efficiency one have
two tones certain activities in too strong processes that will
benefit the company in the best manner possible.

REFERENCES
 Caileigh lombard , 2018, The Brand Identity Prism and how it works, viewed 21
December 2018,
https://howbrandsarebuilt.com/blog/2018/12/21/the-brand-identity-prism-and-how-it-
works/

 STP Marketing, 2018. Online, Model
</https://expertprogrammanagement.com/2019/11/stp-marketing-model/>

 What is PESTLE Analysis
</https://blog.oxfordcollegeofmarketing.com/2016/06/30/pestel-analysis/>

 What is Ansoff Matrix, 2020, Online
</https://corporatefinanceinstitute.com/resources/knowledge/strategy/ansoff-matrix/>

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