Digital Marketing Strategies and Multi-Channel Capabilities of L'Oréal

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DIGITAL MARKETING

Table of Contents
INTRODUCTION............................................................................................................................. 2
P1 AND M1 EVALUATION OF DIFFERENT TYPES OF MARKETING CHANNELS OF THE
COMMUNICATION AND HOW THEY ARE INTEGRATED into L'OREAL GROUP FOR MAXIMISING
RESOURCES AND ADD VALUE TO ITS PRODUCTS...........................................................................3
P2 AND M2 DESIGNING OF COMMUNICATION OBJECTIVES AND EVALUATE ITS APPLICATIONS IN
RELATION TO THE MARKETING COMMUNICATION MIX AND BUSINESS OBJECTIVES OF L’OREAL6
P3 PROVIDE JUSTIFICATIONS FOR THE SELECTION AND INTEGRATION OF COMMUNICATIONS. 10
P4 AND M3 DESIGN AND CREATION OF EFFECTIVE DIGITAL MARKETING ACTIVITIES AND
BUILDING MULTI-CHANNEL CAPABILITIES OF L'OREAL................................................................11
P5 AND M4 DETERMINING AND EVALUATION OF THE MEASUREMENT TECHNIQUES AND
PERFORMANCE METRICS IN DIGITAL MARKETING AND CRITICALLY EVALUATE THEIR
APPLICATION............................................................................................................................... 14
P6 PRESENTING SET OF ACTIONS TO IMPROVE PERFORMANCE IN DIGITAL MARKETING...........16
CONCLUSION............................................................................................................................... 17
REFERENCES.................................................................................................................................18
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INTRODUCTION
Today's world is highly dependent on the internet and also uses it to enhance their business
performance. To aid them, the concept of digital marketing has gained significant prominence.
Digital marketing is an online concept where the viewer is targeted and converted to their
customer by an organization so that they would be able to sell their product and also retail
them using effective digital technology (Chaffey and Ellis-Chadwick, 2019).
The given study has been based on L'Oreal which is the largest cosmetic companies across the
world. The company has been utilizing the concept of digital marketing to bring success in all its
dimensions namely; marketing, social, E-commerce and beauty tech leadership in a significant
manner. In the given study, there would be a detailed discussion about the impact of digital
technology on the working environment of the company and how it would bring opportunities
and challenges with it. Furthermore, the use of key digital tools and digital platforms would be
accessed in an appropriate manner. Besides, the study would also evaluate the digital
marketing activities of the company and its capabilities to successfully build multi-channel. At
last, some effective methods for measuring and monitoring digital marketing for the company
would be analysed.
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P1 AND M1 EVALUATION OF DIFFERENT TYPES OF MARKETING CHANNELS OF
THE COMMUNICATION AND HOW THEY ARE INTEGRATED into L'OREAL GROUP
FOR MAXIMISING RESOURCES AND ADD VALUE TO ITS PRODUCTS
DEFINITION OF DIGITAL MARKETING
Digital Marketing is the procedure of marketing of the products and services of any given
organization using digital technologies with the help of the internet using mobile phones, social
media and another digital platform. In today’s scenario, it is expanding to a greater extent and
has increased the curiosity among the customers. There are various key trends which display in
favour of digital marketing in this business world (Chaffey and Ellis-Chadwick, 2019). They are:
Good Content
For a company like L’Oreal, it is important to provide a good content about its cosmetic
products so that it would be able to convey its information to its customers in an effective
manner and this would be possible via digital marketing.
Money
The most important aspect for any company is to give priority to the price of its product and
need to provide them to its customers at an affordable cost. With the help of digital marketing,
the L’Oreal Group would be able to convey the price range for its different customers online
and would also provide some discounts on its products (Shaw, 2018).
Creativity
Digital marketing would help L’Oreal Group to present its product in a better as well as in an
interactive manner so that it would be able to market its products effectively and would also
increase the curiosity about the products towards their potential customers (Kraft, 2015).
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OFFLINE AND ONLINE MARKETING CHANNELS
Digital Marketing is done in L’Oreal by using both offline as well as online marketing channels.
Online marketing channels imply the conduction of marketing using the internet and thus have
unlimited interaction to the customers in a significant manner. Offline marketing channels imply
conduction of marketing without the involvement of the internet and interacting with the
customers by face-to-face interaction albeit in a limited manner (Gómez, et al. 2017).
COMPARISON BETWEEN OFFLINE AND ONLINE MARKETING
Online Marketing Offline marketing
 Use the internet to connect with
people
 Provision of various measurement
tools to measure the traffic on the
internet
 Have long-term exposure
 Low cost and high reach
 This marketing is more focused on its
targeted customers
 Provision of the real-time results
 Use the offline channel to have
interaction with people
 No provision of measurement so as to
assess their effectiveness
 Have short-term exposure
 High cost and low reach
 This type of marketing is less focused
on targeted customers
 No provision of real-time results
(Karray and Sigué, 2018)
OPPORTUNITIES IN DIGITAL MARKETING
I. Internet of Things
It is a new concept which implies on the connection of different digital devices with each other
so that it would be easy to share data and information on the internet and provide more
enhanced and robust operational efficiency for the given organization.
II. Expansion of Online Services
Digital marketing is the best possible platform to increase the online services provided to the
customers by the organization so as to effectively convert the viewers into regular customers.
This is possible by assessing the needs of the customers and making strategies to fulfil them in
an effective manner (Kannan, 2017).
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III. Big Data and Block-chain
These are two concepts which would be the future of digital marketing and would help in
enhancing the business of any organization. Big data is the process of sharing the information
on a large amount of data with each other in an integrated environment. On the other hand,
block-chain is the process of encapsulation of the information in the form of encrypted blocks
and passing them in chains for effective communication (Shaw, 2018).
CHALLENGES IN DIGITAL MARKETING
I. Meeting Customers’ Expectation
The biggest challenge in digital marketing is to provide good and accurate products and services
so as to meet their expectation in an effective manner. If the company is unable to fulfil its
requirements, it would not be able to survive in the market.
II. Preservation of Data
Another challenge posed by digital marketing is the preservation of data by an organization and
save them for future use and also to provide them with a good security mechanism. Failure to
preserve data would hold back the company from getting competitive advantages (Ryan, 2016).
III. Shortage of Skilled Person
There is a current shortage of skilled workers who are expert in the digital marketing and has
posed a challenge for the given organization to identify and recruit those talents who are
capable enough to utilize digital marketing for the benefits of the company. Currently, this
shortage is growing with the passage of time and has increased the tension among the
management to enhance their efficiency (Karray and Sigué, 2018).
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P2 AND M2 DESIGNING OF COMMUNICATION OBJECTIVES AND EVALUATE ITS
APPLICATIONS IN RELATION TO THE MARKETING COMMUNICATION MIX AND
BUSINESS OBJECTIVES OF L’OREAL
In order to effectively perform a business, there is a requirement of a solid platform on which
the business could achieve a new height. In order to achieve success, it is required to design
good communication objectives for the given organization. In the given case study, it has been
found that the L’Oreal Group has benefited with the rise of online shopping and it gets 105 of
its revenues from e-commerce. Moreover, its marketing is continuously shifting towards a
"digital-first" approach. The reason behind this is the presence of 1 billion audiences and 250
million followers who follow the company on its social networks. On keeping this situation in
mind, a communication objective of the given organization has been designed.
As the audience of the L’Oreal requires an impactful, ultra-short and animated content, a
communication objective for its product L’Oreal’s Colorista has been designed for the social
media platform such as Instagram and FaceBook. This could be explained by using SMART
objectives. In the case of specific and measurable objectives, the given company should
promote its new products so as to enhance its market share within the time period of six
months. Furthermore, the sales percentage would be measured by calculating its reach during
social media campaigns (De Mooij, 2018).
Achievable and realistic objectives would be fulfilled by introducing the given product in the
new market and match the percentage of sales during the campaign done in social media
within the given time period. Furthermore, in order to make it a realistic approach, aggressive
marketing strategies would be utilized so as to increase the revenue from the given medium.
Realistic and timely objectives could be achieved by setting a given time period and use only
those approaches who are relevant in nature and thus enhance the sale of the products of the
given cosmetic company in an appropriate manner (Santos, et al. 2018).
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In order to fulfil the business objectives of the given organization, there would be utilization of
the integrated marketing communication (IMC) approach which would make the marketing
communication more directed towards goals and aligning it with the marketing strategy of the
given organization (Ryan, 2016). In addition to this, the company would utilize 7P’s of marketing
communication mix which combines with different communication methods for successfully
executing marketing activities in a significant manner. These are:
Advertising
The most important and paid form of promoting the products of the given organization is
advertising them by using the identified sponsor. They would target individuals as well as a
group of people using various forms of medium such as electronic and digital media. One such
example has been designing weekly ads which would be sent to the local residents and all the
information about the given product would be conveyed to them in an appropriate manner
(Curran, et al. 2018).
Public Relations
It is utilized to create a cordial relationship between the people and given organization using
various promotional opportunities such as press and media coverage, articles, presentations
and through award ceremonies. As organization earn good amount of revenue from PR, they
are able to spend a large number of their resources on various events and activities and thus
create large attention among the people (Pavenkov and Rubtcova, 2019).
Personal Selling
In this strategy, the salesmen of the company are utilized to visit their target audience using
face-to-face interaction and thus are able to understand the needs and requirements of the
customers and thus provide them with effective services.
Sales Promotion
These are the marketing activities which boost the sales of the organization by adding to the
basic value offered so as to boost the sale of the given product. It includes various scheme such
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as “buy one get one free” and “% of discount in buying few packets of the product” (Curran, et
al. 2018).
Direct Marketing
In this method, the product and services of the given organization are sold to the consumers
directly without involving the retailers. It includes telemarketing, catalogue, mail brochures,
mobile marketing and so on.
Digital Marketing
It is the most important online platform which has been utilized by the given company to
enhance their productivity. Various digital marketing tools and social media marketing are
utilized to sell the products and services of the company effectively.
Guerrilla Marketing
It is newest, innovative and low-cost marketing tactics which have been utilized by the
organization to promote its products in an effective manner (Pavenkov and Rubtcova, 2019).
DIGITAL TOOLS FOR MARKETING
For working in any platform, there would be a requirement of a software tool for the proper
development of the business in an effective manner. Some of these digital tools are as follows:
Search Engine Optimisation (SEO)
SEO is utilized in the business because it helps it in getting first place in the search engines such
as Google and thus increases the visibility of the website of the given company in a significant
manner. The visibility happens with the help of keywords and helps the individual to view the
business on the website effectively (Miklošík and Daňo, 2016).
Digital Analytics
It is one of the most important tools used in digital marketing and included Google, Twitter and
Facebook analytics which help in the continuous engagement of the customers on the internet
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in an appropriate manner. They provide proper tracking of data and help the organization to
search the potential customer and have a wide appeal about their products.
Social Media Marketing (SMM)
There has been an increased usage of social media marketing to enhance the business of a
given organisation. SMM utilizes the services of the website for business purpose by promoting
its products in the form of ads which would enhance their business in a successful manner. The
best tools used in SMM are Buffer and Hootsuite (Tuten and Solomon, 2017).
Email Marketing
The business is also conducted using email and in this strategy, customers are the base of
targeting with the sole purpose of marketing. The customers are provided with all the
necessary information about the products and services and the tools used for conveying the
message are MailChimp and Iterable (Samiee and Chirapanda, 2019).
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P3 PROVIDE JUSTIFICATIONS FOR THE SELECTION AND INTEGRATION OF
COMMUNICATIONS
In the given study, there has been the development of e-commerce for the successful
implementation of digital marketing. The reason behind the selection of this platform is that it
is a cost and time-saving option for the business. Besides, the main purpose of digital marketing
and E-commerce has been to conduct online business using the services of the internet. It
would take less amount of time and less capital to expand e-commerce in the business platform
in a significant manner. There are various parts of the development of E-commerce and it
includes big data, mobile commerce and personalization (Dolfen et al., 2019).
In addition to this, there has been a requirement among the organisation to build a good digital
platform and develop a good digital tool for proper development of the business. These tools
are important because they are a combination of software and hardware and help in proper
development of the business and thus help in their growth and development in an effective
manner (Jackson and Ahuja, 2016).
Digital marketing is an online business platform which helps the individual in providing time and
money saving options and this increase their business in an effective manner. Furthermore,
with its evolution, there has been significant development of other online business. In addition
to this, the development of E-commerce would help the customers to get quick delivery of their
products with easy and quick transaction and provision of accurate information effectively
(Keegan and Rowley, 2017).
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P4 AND M3 DESIGN AND CREATION OF EFFECTIVE DIGITAL MARKETING
ACTIVITIES AND BUILDING MULTI-CHANNEL CAPABILITIES OF L'OREAL
Marketing activities are those strategies which are utilized by the organisation for proper
development of their business and thus it is mandatory for them to have proper planning by
following all the laws related to the given business in order to make it look legal. In the given
study, there would be conduction of preparation of digital marketing activities for L'Oreal for
building its multi-channel capabilities in its luxury as well as active cosmetic division.
Plan and Strategies for Digital Marketing
It is essential for any business to have a proper plan and strategies as it would reduce the
chance of failures in the given business. These are the essential part of every organisation for
achieving growth and success in their business. For L'Oreal there are various steps to build a
good digital marketing strategy and it includes:
Awareness: This is the plan of looking into the needs and aspirations of the customers and
planning strategies to fulfil their requirements and thus develop the business. In the case of the
L'Oreal, it has decided to promote its products on the basis of luxury and active cosmetics and
thus fulfil the needs of people who require cosmetic products as per their income.
Engagement: A proper interaction with the customers is essential for any company and digital
marketing provides a significant platform for a good engagement between them. With the help
of a proper digital marketing tool, the given organisation would interact with its customers and
would engage with them to provide them with better cosmetic products (Mahmud, 2016).
Subscription: It is the next step to have a successful engagement with the customer. In this
step, the company would enhance the curiosity of the customers by providing the latest
information about the product. The motive of the company, L'Oreal is to brush the mindset of
the customers through its policies and persuade them to purchase their products in an effective
manner (Kotler et al., 2017).
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