L'Oreal Marketing Plan: Rebranding Strategy and Implementation

This report provides a detailed marketing analysis and rebranding strategy for L'Oreal, addressing the company's challenges in maintaining sales and profits. It begins with an executive summary and an overview of the company's current market position, followed by an in-depth examination of the target market and positioning strategy. The report emphasizes the importance of demographic, geographic, and psychographic segmentation, and proposes a rebranding strategy centered around customized cosmetics. The core of the analysis lies in the marketing mix strategies, including product development (customization and quality enhancements), pricing (premium positioning), promotion (online and offline campaigns), and place (worldwide distribution). The report suggests a push distribution model and concludes with an evaluation of objective achievement, an implementation plan, and recommendations to increase revenue and market success. The analysis includes tables, charts and references to support the marketing strategies.

Running Head: MANAGEMENT 0
MARKETING FOUNDATIONS

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Executive Summary
The below mentioned paper highlight the details about the marketing analysis of the company
L’Oreal. The company is facing difficulty in increasing sales and maintaining high level of
profits in the market. The below mentioned report is created for the rebranding strategy of the
company L’Oreal. The organization should create new product range of customized cosmetics in
the market and should focus on the effective promotion strategies for the company. Lastly,
implementation plan and recommendation strategies will help the organisation to succeed in the
target market and increase the level of revenue as well.

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Contents
TARGET MARKET & POSITIONING.........................................................................................3
SELECTION OF TARGET MARKET.......................................................................................3
POSITIONING STRATEGY......................................................................................................4
Positioning Strategy.....................................................................................................................4
MARKETING MIX STRATEGIES................................................................................................4
PRODUCT/SERVICE.................................................................................................................4
Defining the product attributes................................................................................................6
PRICE..........................................................................................................................................6
PROMOTION..............................................................................................................................7
PLACE.........................................................................................................................................8
Push distribution model...........................................................................................................8
EVALUATION AND CONTROL..................................................................................................9
EVALUATION OF OBJECTIVE ACHIVEMENT...................................................................9
IMPLEMENTATION & SCHEDULE............................................................................................9
GANTT CHART.......................................................................................................................10
CONCLUSIONS AND RECOMMENDATIONS........................................................................10
REFERENCE LIST.......................................................................................................................11

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TARGET MARKET & POSITIONING
SELECTION OF TARGET MARKET
L’Oreal is a leading organization present in the personal care industry, the organization
provides a wide range of skin and hair care products to the customers in the business
environment. The L’Oreal group works in the worldwide market with approximately 130
countries on five continents as all the people present in the world require such products from the
market (Hong, 2013). The portfolio of the group serves three different range of goods to the
customers present in the business environment that are professional products range, L’Oreal
Luxe and thirdly consumer goods. Analysing the target market for the company, it should be
noted that the organization serve wide range of customers in the environment. However, the
rebranding strategy for the company would require the organization to differently target the
customers in the environment so as to increase their level of satisfaction in the market (Morgan,
2012). Below mentioned is the elaboration of the segmentation strategy for the company
L’Oreal:
Demographic segmentation: In relation to this type of segmentation, the organization target
people based on their age, gender, income, marital status and occupation (Goyat, 2011). Based
on age, the company targets the people belonging to the age group of 25 to 50 years. These are
the people who have keen interest in purchasing the products of the company. On the basis of
gender, the company majorly focus on women because they are more concerned for their skin
and beauty as compared to men. On the basis of income, the company targets the middle and
well as high income level group present in the market.
Geographic segmentation: On the basis of this type of segmentation, the organization targets
the people present in the whole world. Being such a large organization, the business holds the
capacity to provide the whole of its product of the world. However, the organization should
majorly target people present in US, UK, Europe and Asian market.
Psychographic segmentation: On the basis of this type of segmentation, the company should
target having the behaviour of buying new things available in the market. The organization

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targets people who get inspired from the image of the brand very easily. These are the people
who keep on trying new cosmetic products in the environment.
POSITIONING STRATEGY
Positioning Strategy
Positioning strategy refers to the marketing strategy that helps the organization to target
the brand at the most appropriate position in the target market. The marketing activities of the
organization help the customers to attain a differential mind-set for the products of the company
due to which a differential and appropriate image are created for the company in the target
market (Varadarajan, 2010). Talking about the brand L’Oreal, it should be noted that the
organization wants to position itself at a place where customers believe that the brand is
premium and effective as well. The marketing strategy of L’Oreal are defined in such a way that
the consumer believes that the products provide premium services to the customers at relatively
high prices in the market. Below mentioned perpetual map explain the adequate position of
L’Oreal against its competitors present in the target market.

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MARKETING MIX STRATEGIES
PRODUCT/SERVICE
The product strategy of the company explain the details about the diversified product
range offered by the brand in the target market. The company has a wide portfolio in the
environment that helps the business to increase the satisfaction of customer by several products
in the environment. The consumer division, Luxe, and professional segments are the three major
product line of the company (loreal.com, 2019). With an aim to implement the rebranding
strategy for the company to increase its customer base, the organization should focus on
implementing the product strategy in such a way that the right type of product delivered to the
right type of customer in the market.
The company offer several mascara, nail polish, eyeliner, lipstick, blush for face, lip
gloss, hair colour, lip liner, concealer, nail polish remover, foundation, conditioner, hair serum
and spray, shampoo, cleanser and toner in the environment (Chadwick, 2019). All these products
are available in different price range and sizes in the environment. Based on the requirement,
different products should be offered to the customers in the market. Further, the organization
should also focus on increasing the quality of the product or its weight so as to drive the
customers to purchase the products in the environment. By increasing the weight of the products
in the environment, the organization will get to attract more customers in the marketplace
(Augusto & Coelho, 2009). The customers will get directed towards the products because
L’Oreal would be providing them more in less.
Further, it should be noted that the products provided by the organization innovative and
based on the likeliness and preference of the consumers in the target market. The products are
also according to the given norms of international testing standards without harming the animals
in the environment. The no animal harm policy of the company should be adequately promoted
in the environment to attract more people in the environment. Under the product strategy, the
organization should also focus on customizing the products based on the specifications of the
customers present in the environment. For instance, a girl living in Africa because of the
difference in their looks, body type and appearance cannot use the eye shadow palette used by a
fair complexion girl living in the UK. Therefore, the organization should customize the products

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based on the specifications and preference of the customers present in diverse target market.
Thus, with the help of this type of product strategy the organization should aim to target more
people and increase their experience from the brand in the environment (Fogliatto, Da Silveira &
Borenstein, 2012).
Defining the product attributes
Current Product Attributes Additional Product
Attributes
Resulting Consumer
Benefit
L’Oreal
- Optimum quality cosmetic
product
- Wide range of goods
- Available worldwide
- Customization of product based on the
preference and specification of customers
living in that area.
- Customized products available only in
specific markets
- Increase in product weight.
- Formation of products based on
the culture and market features
will attract the customers to
purchase the products.
- Lack of availability of the
customized product in different
markets will increase the
differentiation and sales of the
product.
- Increment in weight will attract
the customers to get more in
less.
PRICE
Particulars 30-49 ml 50 and above
L’Oreal $10.97 $19.99
MAC $27 $33
As the company is one of the most leading brands the market of beauty therefore, it is
important for the organization to set up the premium price of the goods to maintain goodwill of
the brand in the market. Therefore, the pricing strategy of the brand should be determined in such
a way that it comes in the category of premium brand in the market. The professional products of
the company are available at the salon so the customers visiting the salon can purchase the
products from there. The Luxe segment of the company is available at all stores in the market
and online as well (loreal.com, 2019). This segment of the company is also premium priced but

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still, the customers are ready to pay high price in order to attain the product in the market.
Further, the customers targeted by L’Oreal do not fear of the premium pricing of the product,
instead, they look at the optimum quality of the goods as their main concern. So, the organization
should aim to innovate the product while keeping the price high in the market.
The above mentioned table details the list of prices of L’Oreal foundation and MAC
foundation. It can be easily analysed that prices set up MAC is high because it targets only
premium level customers in the market. Whereas L’Oreal on the other hand serves middle to
upper income level people present in the market. Therefore, the price set by the organization can
be afforded by middle income level people as well. The company has strong brand equity that
states that innovation in the products would increase the experience of the customers. The
company can also increase the pricing of the customized product to some extent if they aim to
make the product set on the premium range. The target audience for the company would be
people present in their mid-20s to 50s. Further, in order to increase the awareness of the product
in the market, the organization should implement effective online and offline campaigns
representing true meaning of beauty (Fuchs & Diamantopoulos, 2010). The company should
utilize the cultural differences prevailing in the external environment and should introduce it in
promoting the customized product in the environment. The specific pricing strategy should be
implemented in such a way that it should increase the revenue of the organization by 7%.
PROMOTION
The company should highly focus on the promotion strategy in the environment. They
should make use of both offline and online strategies to attract the interest of customers in the
environment. Through the offline medium, the organization should initiate campaign to explain
that beauty does not mean being fair and they have introduced a range of products based on
differential complexion of people. This campaign is will highly attract people in the
environment. Further, the company should also make effective use of online medium to attract
the people in the environment. They should utilize several platforms like Facebook, Instagram to
attract the interest of customers in the market (Killian & McManus, 2015). Further, the
organization should also join hands with several e-commerce websites like Amazon, Alibaba etc.
to sell its products in the online market.

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Below mentioned are the details of the media coverage for the company and its new customized
products presented in the market. The organization should start the advertising strategy from the
month of October and introduce the new product in first week of June.
Media October November December January February March April May June July August September
TV 6 slots 2 slots 1 slot - - - - - 4 slots 3 slots - -
Radio 1 slot 1 slot 1 slot 1 slot
Billboards -
Magazines Cover
Page
Double
Spread
Single
Page - - - Single
Page
Single
Page
Single
Page - -
Online 3 post/day 1post/day - - - - - - post/day post/day - -
PLACE
As discussed above that the company should target people belonging to different parts of
the world. Through online medium, the company should sell products to the customers in the
worldwide market. Further, it should be noted that L’Oreal is present in 130 countries and in 5
continents (Hong, 2013). The products of the company are available in different department
stores, salons, pharmacies, e-commerce websites etc. So, the company should focus on being
present in the worldwide market so as to deliver goods to the customers when demanded.
Push distribution model
Warehouse
Retailer Online
Final
Consumer

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EVALUATION AND CONTROL
EVALUATION OF OBJECTIVE ACHIVEMENT
With an aim to analyse the growth of the new marketing strategy and product expansion
activities of the company, the management of the company will make use several methods to
analyse its growth. Initially the business will setup key performance indicators and critical
success factors to evaluate the growth of the business (Kimmel, 2018). Completion of these
objectives will identify the success of the plan of the company. The organization will help judge
the success of the strategy using the responses shared by the organization regarding the brand
and the rebranding strategies of the company. The customer response will elaborate that the
people have liked the products and services of the company or not. Lastly, it should be noted that
the company would analyse the market size of the company in the business environment
(Caecilia, Kindangen, & Tumewu, 2017). Increment in the market size will clearly elaborate that
the organization has gained appreciation from the end of customers in the market. KPIs of the
company are mentioned below:
- Increment in sales by 7%
- Increment in market size by 20%
- Increment in customer satisfaction by 25%
- Increment in online sales by 15%
IMPLEMENTATION & SCHEDULE
Gantt chart is a series of activities for a motive to be completed in the environment. This
chart explains the activities that should be implemented within a given time frame to achieve
desired objectives in the environment. Gantt chart for the L’Oreal Company will identify the
elaboration of the action plan of rebranding strategies of the company. The plan is developed for
the coming 16 months that would identify the marketing and other activities conducted by the
organization for the launch customized product range of the company (Šírová, 2015).

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The company will launch the product in the next year in the month of October, however
the product design and development strategies will be implemented from the month of July itself.
3 months prior to the launch of the product, the company will implement market research for the
costing, availability of raw material, prospective target market etc. activities. Along with this, the
company will develop the promotional tools so as to let people know about the brand in the
environment. Further, the company will introduce the brand in the month of October. They will
analyse the activities of the product for 12 consecutive months. In this phase, the organization
will analyse each and every activity of the customer in relation to the product and the brand. The
management will implement control strategies if the plan does not go according to expectations
(Nguyen, 2015).
GANTT CHART
CONCLUSIONS AND RECOMMENDATIONS
Thus, in the limelight of above mentioned events, the fact should be noted that the paper
highlighted details about the company L’Oreal and the rebranding strategies of the company. the
company should focus on increasing effective promotion strategies in the environment using
both online and offline medium. This strategy will help the organization to increase sales. Also
the company should focus on creating customized products based on the culture and preference
of the customers in the market. Lastly, it is recommended to the organization that they should
supply the customized product range to the customers present in different parts of the world
based on their specifications. They should serve different products in each country. This will
help the organization to increase its brand impact in the market. Lastly, it is recommended to the
organization that they should keep the products at slightly higher price range in the market so as

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to increase its effectiveness in the eyes of customers and make the brand a highly premium brand
in the market.