Digital Marketing Strategies of L’Oréal: A Multi-Channel Approach

Desklib provides past papers and solved assignments for students. This report analyzes L’Oréal’s digital marketing strategies.

Unit Number and Title Unit 24 – DIGITAL MARKETING
Academic Year 2019
Student Name:
Student-ID No:

2
Executive Summary
The case study of L’OREAL has been chosen to understand the concept of Digital marketing.
The main digital tools, channels and methods are assessed to evaluate with the other physical
channels available for marketing. This report also shows how L'Oreal is preparing for the next
evolution of digital marketing. The brand is available from more than a century and with the
evolution of digital marketing, the brand has to show its innovativeness, forward thinking ideas
so that its marketing approach stays up to date.

3
Table of Contents
Executive Summary.................................................................................................................................2
Introduction.............................................................................................................................................4
TASK 1: Opportunities, challenges and impact of the digital environment.................................................4
Environmental analysis for L’Oreal digital presence...............................................................................4
Opportunities...........................................................................................................................................5
Challenges...............................................................................................................................................6
Impact......................................................................................................................................................6
Task 2: Critical assessment of L’Oreal’s business by comparing and contrasting it’s digital presence versus
its stores presence.......................................................................................................................................7
Task 3: Additionally, you are required to provide a plan for organising digital marketing activities to
support L’Oreal’s initiatives of building multi-channel capabilities in:...................................................8
(a) Its luxury cosmetics division,.............................................................................................9
(b) Its active cosmetics division...........................................................................................11
Task 4: provide key methods you will use to evaluate, monitor and measure the digital marketing
effectiveness of your recommended activities..........................................................................................11
Conclusion.................................................................................................................................................13
References.................................................................................................................................................15

4
Introduction
The report shows the digital marketing concepts used by L’OREAL. In this report an
environmental investigation for L’Oreal digital existence has been done. The report focuses on
the opportunities, issues, challenges and the probable effects of the digital environment for the
cosmetics industry. The digital is transforming the cosmetics industry for betterment. It is the
future of beauty and it is expected to bring for the dimensions to the things which were restricted
earlier. As per the Global chief digital officer of L'Oreal Lobomira Rochet, the one of key values
of L’Oreal has been “to capture and seize what is starting” (Weinstein, 2018). Even if it was a
century old organisation, the organisation is ready for change and in 2010 it became digital
comma after which the constant transformations have been there in to the business.
The L’Oreal Group is the world’s main organization for cosmetics and Beauty products. The
brand has a presence in 130 nations, 32 global brands, 78,600 employees as of 156 diverse
countries and 19 Research & Innovation institutes with brands like Maybelline New York,
Garnier, and the Body Shop (Loreal, 2019).
TASK 1: Opportunities, challenges and impact of the digital environment
Environmental analysis for L’Oreal digital presence
L'Oreal had applied different strategies to reach to maximum number of target audiences. The
use of content marketing and social media marketing has led the organisation to get lot of
response from the clients. The environmental analysis has been carried out by the pest analysis
for the organisation.
 Political factors: The political challenges which are faced by L’Oreal that it has to follow and
confirm to each of the various governments’ leadership styles as it operates in different
nations. There are different rules and regulations set by different countries for Digital
Marketing and therefore the company has to keep those in mind while creating its marketing
strategies (Faisal, 2016). L'Oreal has to follow the rules for advertising as per the advertising
standards authority e. The violation of these rules and policies can lead to ban of its products
and advertisements therefore the organisation has to be careful when creating new digital
marketing plans (Forbes.com, 2019).

5
 Economic environment: The organisation has to adapt to the economic changes in every
nation wherein it is present. Like in the year 2004 there was an impact of the drop in the
value of dollar and other currencies which also had impacted the organisation. During the
recession also the organisation had to bring changes to its marketing strategies. The
economic environment is important to be considered for the target market (AIAbeauty,
2019).
 Social environment: The organisation has collaborated with Emmy award winning fashion
reality shows and Project Runway and also offers professional advice regarding the beauty
tips for plane stress on brand message to the audiences (The futoncritic.com, 2018). There
has been effective selection of partners for delivering and coordinating message of beauty
and self worth, particularly to the women segment. The cultural activities of the different
nations are given importance while creating the digital marketing designs (Curtis, 2019).
These cultural aspects of the nation involve the beliefs, attitude, values and principles of the
individuals. As the standard of living continuous to enhance, the level of education is also
Getting higher and with spread of knowledge regarding the digital media and internet, the
organisation is continuously focusing on image appearance, high quality cosmetic goods with
the internet and its evolution, there are different initiatives taken up by L’Oreal like it has
acquired Modiface which gives the air technology for the beauty brands
(mediaroom.loreal.com, 2019). The AR, VR, AI technologies are bringing new ways of
discovery, experiences and buying patterns for the goods.
 Technological environment: The changing technology has affected the availability of goods
and services to customers. The innovative goods and enhanced quality of goods have brought
a drastic change to the cosmetics industry. By the growth of science and technology, the most
up-to-date scientific and technical achievements and superior technologies quickly apply in
cosmetics businesses, mainly IT, biotechnology, nanometer tools, electronics technologies,
which offer a great deal of opportunities for the expansion of cosmetics business. L’Oreal has
strong research and development (R&D) capacity (Loreal.com, 2019 a).
Opportunities
At the front position of the digital revolution, L’Oreal is continually in search of latest techniques
to connect with customers. From innovative e-commerce methods/techniques to advanced apps,
they are leading the path into a latest age of beauty. The digital strategy enhances the value of

6
L’Oreal innovations by taking up the newest trends via Internet supervising, bringing up the
latest progressive mobile apps known as Makeup Genius and makes an even closer relation with
customers by their famous brand ambassadors with millions of followers which follow them on
social networks (Loreal.com, 2019). Social media is vital to enhance engagement and likeness
for marketing. L’Oreal’s social media existence is remarkable. Being there where the clients are
is an element of the broader conversation and playing a role in the growing customer journey are
the main constituents in the utilization of social media for business goals.
From E-commerce aspect, L’Oreal had huge opportunities in its distribution channel, because of
a strategy adapted to the information and diverse practices of every market (statista.com, 2019).
They also laid an online shopping to add to customers’ online shopping experience.
Challenges
The beauty segment is an ideal for content marketing where a lot of women perform blogging
and follow the influential beauty specialists by those platforms which provide brands with an
opportunity to instruct and amuse consumers in a genuine manner. In 2011 L’Oreal came up a
website known as Makeup.com, giving beauty hacks, tutorial recordings and expert instructions
every day in an exceptional way (Hutchinson, 2019). L’Oreal had been partnering with YouTube
influencers, beauty bloggers which allows the brand to get to an obscure audience, the vital key
to rising company development. The challenge is that the result of applying digital marketing is
not to clear soon.
Impact
It is expected that the new technologies like Artificial Intelligence, AR, VR, are bringing
changes to the way the consumers of L’Oreal find out, try, use and purchase the goods. The
game won’t be the similar when the buyers will just ask the voice assistant to purchase the finest
mascara in the market or when the mirror will offer users with a customized beauty session or
when one will be capable of watching a make-up tutorial directly on the face by a virtual try-on.
The brands which would excel these experiences will be the ones individuals select.

7
Task 2: Critical assessment of L’Oreal’s business by comparing and contrasting it’s digital
presence versus its stores presence
L’Oreal is the leader in beauty industry with high presence in stores. The business also has one
of the leading social media presences amongst whichever brands all over the globe. As
component of its social media strategy, L'Oreal has different social media profiles for most
nations where its goods are sold and even a separate page for every product. As per Unmetric
(2019), the L'Oreal's social media strategies all over have been displayed in below diagrams to
show how they connect with their audience:
Source: Unmetric, 2019
The business has got digital presence also with pioneering for successful campaigns with
celebrities such as David Beckham for promoting their self-confidence and advising for clients
through the online platforms.
The comparison between the digital presence and store presence of L'Oreal can be made by the
below attributes:
- Flexibility: the organisation has been flexible online in following the trends and giving
advice. There are various Facebook pages and Twitter accounts segregated into brands and
areas giving L'Oreal the flexibility to quickly adapt as per the trending and demands of the
consumers. The level of connectivity, discussions, interaction, communication and
engagement is highly important than the number of followers, therefore it has to focus on the
announcement of number of people visiting stores. The social media is not the only way
however it is an additional way of the personal customer service which offers the trusted
recommendations.
- Reaching customers and professionals. The number of followers is not a priority for this
organisation however it has turned out to be a habit of social media utilizes two make

8
comparisons. followers combined on different pages of Facebook for the Nations like USA,
South Africa, France, UK, Australia and India only provided with the sum of 204 million
followers and therefore one can understand how huge the community of L'Oreal is born there
is a big set of professionals who are also following the LinkedIn Page of L'Oreal which is
around 1.3 millions of followers.
- Investment in web based recruitment and bringing up new initiatives with the recruitment
website and campaigning for the social media pages of L'Oreal talent have helped in
attracting potential workers with high opportunities.
- Brand establishment. The organisation has been establishing its brand with Innovation and
sustainability, research, beauty and diversity and this establishment has been through the
home page because the news feed is recorded constantly in these areas for which L’Oreal has
got numerous rewards. There is high amount of engagement which has led to creation of
attributes with which the clients and employers can identify. There are different online
platforms which are utilised by L’Oreal for bringing various messages across. The videos and
images are also there for promoting beauty goods on the different social media pages like
L'Oreal Paris you case Facebook page which is contrasting to the traditional page of the
organisation which was on Twitter. There are channels utilised in a correct manner for
bringing diverse messages to different types of target customers.
- The past trending of store marketing is still applicable and the organisation partners with
influences, other businesses and celebrities. There are 15 ambassadors from the beauty
squared and the prince's trust which are part of the campaign which is known as all worth it.
This campaign involves trainings with respect to self confidence and material for providing
guidance on usage of goods. The organisation maintains long relation with promoting
partners and also boosts self esteem of the regular clients. L’Oreal goes by the online trading
and provides the community beyond the high quality goods and client servicing
(Loreal.co.uk, 2019). It acts in the physical world along with the online world for going to
extra mile to be outstanding.
Task 3: Additionally, you are required to provide a plan for organising digital marketing
activities to support L’Oreal’s initiatives of building multi-channel capabilities in:
The multi Channel Marketing is the procedure where the offline and online marketing
communication channels are utilised for targeting and engaging with customers. The plan for

9
Digital Marketing activities for supporting the initiatives of L'Oreal in building multichannel
capabilities is to provide a strategy of the resources required for attaining the sales targets. In this
the time frame will be and will and the communication channels would involve:
- Webpage,
- physical stores,
- television,
- catalogues,
- marketing through emails,
- text messaging,
- Direct mails and
- Blogging.
Goal: The objective is to provide leads and sales targets for the L'Oreal good summer which is
applicable to the new launch of the organisation as well as different countries as it operates in
various markets and into different categories.
A successful multi-channel marketing plan will help in outlining the marketing communication
methods and channels which will be needed for allowing the customer acquisition for L'Oreal. It
will help in connecting different channels altogether in single channel, therefore it would make
the multi-channel communication method to be successful.
Since the organisation comes up with different products very often therefore it is exciting for
L'Oreal to boost sales, and hence the brand awareness and also it can also get more revenues.
However when there is no marketing plan behind the launching or expansion of the product then
any product can become a flop (Donnelly, Simmons, Armstrong & Fearne, 2012).
(a) Its luxury cosmetics division,
In this plan the launch of a new item by L'Oreal would be there and the multi-channel approach
will be utilised for spreading the word regarding the new Ventures went what channel will not be
adequate for actually selling the goods and therefore the business will have to get benefited from
entire of its marketing resources.
- The social Media campaign: Strategic social plan with the calendar of contents and
interesting hashtag can create a buzz before the launch and people can get interested (Praude
& Skulme, 2015). Since Twitter and Facebook are well-known sites there for L’Oreal’s new
product will utilise them getting the word out and announcement of the new gods. It will also

10
make use on Snapchat and YouTube for bringing more creativity with the announcement.
There will be a sneak peek offered for the new collection therefore exclusive space will be
created with more of interesting content.
These campaigns will help in attracting interest and also gathering email addresses with creation
of social following (Ammerman, 2015).
- PR and stories: the new launch would be a story that would be worthy of getting read. Then
there will be a little coverage in the local newspaper and Cosmetics publications for
enhancement of brand business and ensuring that more people get to know about the brand
story.
- Brand partnerships with similar brands and other products: partnerships will assist in
enhancing the digital promotion. There will be a Facebook competition mutually with the
partners for hosting of an event. Like there will be partnership with any beauty contest which
can help the organisation in launching of the product.
- Videos: there are visual styles of content and videos streaming all around therefore L'Oreal
will utilise videos for getting more engagement. Investment into high quality videos can
assist in getting the important attributes and messages across in highly interesting and
engaging Way.
- Customer experience and website: when the products are sold online and getting Enquiries,
there has to be streamlining of procedure to the maximum extent (Lee & Yurchisin, 2011).
There is a harmful impact if it is generated and customers get excited only for struggling to
utilise the webpage when they want to purchase on the web page and choice of other
websites for selling the L'Oreal goods has to be carefully done so that the check out and
enquiry procedure is quick and small along with that tribute of enjoyment with the creative
test and beautiful photographs of the products. The well-designed advertisement is important
for websites and online sales so that it doesn't turn out to be a waste of time (Trini & Salim,
2018).
The buzz will be created around 3 weeks before launch of the product and the product launch
would be expected by 14th May. The changes in the sales and revenue recognition will be
calculated on quarterly basis however this plan would need full 1-year for actually generating the
revenues and taking products to each corner of the world.

11
(b) Its active cosmetics division
The active cosmetics division will not require any bus to be created. For this the year and stories
would be used as these would enhance the sales on the basis of people's past experiences. The
stories would create interest among other people and therefore people can relate to it and
understand how they can also experience the greatness of that product. The social media
campaign would not focus on getting the word out however it will focus on sharing the
experiences. The social media videos and current advertisements can boost the sales of the
existing product (marketing focus, 2013). The videos with the celebrities will continue to you
take rounds on social media like YouTube, Facebook, Twitter, Instagram, and WhatsApp. The
webpage will also have different feedback and experiences of the users. There would be real time
discussion regarding the product and its features along with the videos with assistance regarding
the beauty products and makeup procedures by the specialised and professional artists. This
weather existing products will get more popularity among the users.
Task 4: provide key methods you will use to evaluate, monitor and measure the digital
marketing effectiveness of your recommended activities
With the digital marketing campaign the objective is to get positive return on investment. But
with the digital marketing it is also to enhance profits and each campaign does not directly bring
money. Some campaigns are there to increase awareness regarding the brand; however other
campaigns might bring more visitors to the blog. Anyhow both of these lead to increase in profits
in the long run. The short-run outcomes cannot be measured into monetary terms. Therefore it
would be important to know if the above stated digital marketing plan would be successful or
not. For this the method of evaluating success and monitoring the digital marketing campaign
please explain underneath so that the effectiveness of the campaign can be assessed. For
understanding the methods, it is significant that these approaches of monitoring and evaluation
are segregated into 2 types i.e. the web page behaviour and conversions.
The webpage behaviour would be determined by below some methods:
- Visits to the webpage: This is quite simple as in this traffic trends are considered over time.
The matrix is quite shallow for E-Commerce and web-form conversions, yet it is a significant
one for knowing the visits for each marketing channel. For e.g. in this the measuring of
traffic from the SEO can be there with time to understand if it is working effectively or not.

12
Even the potential issues can be spotted quickly in case there is any decrease in the SEO
traffic.
- Page views on each visit: The website visits are significant yet they do not actually show if
people were engaged by the organisation. Google Analytics can help in understanding how
visitors clit through the website and it also provides with average number of pages viewed on
each visit (Digitalengagementframework, 2019). L'Oreal will have to pay more attention to
the web pages which the customers visit the most. By analysis L’Oreal can find out that the
online customers get attracted to specific features or products in the stock. In case there is
any blog then the organisation can get to know about the topics which the customers find
highly interesting.
- Time consumed on the web page: The organisation can evaluate the time people spend on
the web page or beauty blogs and which of the digital marketing campaigns are fetching the
highly engaged visitors (Gurung & Rutledge, 2014). This will be useful because time spent
on the web page doesn't fetch sales directly however it is expected that people who spend
more time on the web page browsing for products are expected to purchase later and other
key potential customers.
- Bounce rates: bouncing is not as good thing in the digital marketing world. In case there is
any high bounce rate with any campaign which means that people the back buttons landing
on the web page then it is important for the organisation to check what is disconnecting
among the marketing strategy and the landing page. In this organisation can monitor bounce
rates using Google Analytics for spotting those trends over time in every marketing
campaign.
The Conversion would be determined by below some methods:
- Online sales: The online sales from the webpage of L’Oreal is perhaps the easiest way of
measuring the conversion point the monitoring and tracking of online sales is simple if the
organisation makes use of Google Analytics for any other web analytics platform. After
installation of a tiny snippet of code onto the webpage of L'Oreal, the organisation will be
capable of observing which of the campaigns are bringing up the maximum online sales. This
is the highly significant conversion for the e-commerce (Contently, 2014).
- Online-to-store sales: not everybody who looks for the cosmetics online bill purchase from
L’Oreal’s website. The conversions can be calculated by collecting information from the