Marketing Communications in a Digital World: Elvive Total Repair 5

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PRINCIPLES OF MARKETING & COMMUNICATIONS
IN A DIGITAL WORLD
BUS020C416S
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Table of Contents
Introduction......................................................................................................................................3
The description of the new product.................................................................................................4
Analysis of the market for this product...........................................................................................5
Strategy for segmentation, targeting and positioning of the product...............................................7
Consumer Segmentation..............................................................................................................7
Targeting the market....................................................................................................................8
Positing.........................................................................................................................................8
Marketing mix for the product.........................................................................................................9
Product.........................................................................................................................................9
Place.............................................................................................................................................9
Price.............................................................................................................................................9
Promotion...................................................................................................................................10
Conclusion.....................................................................................................................................11
References......................................................................................................................................12
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Introduction
Loreal Paris is one of the most reliable brands of personal care range worldwide. In this essay,
the company will be planning to launch a new product line Elvive Total Repair 5 Protein
Recharge – EverPure, which is a specialised product in protecting hair colour and from the heat
also. In this essay, a brief introduction will be discussed. It helps to understand the highlighting
parts of the product. The article explained the target market, which is working women who
belong to the upper middle class for this product. It also revealed that the market analysis for the
new product range itself. The essay also addresses the 4Ps of the marketing mix and some
recommendations in it, which will be helpful to the company to successfully launch the new
product line.
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The description of the new product
L’Oreal is a French personal care company which is operating its business from its registered
head office in Paris. L’Oreal needs no introduction in the personal care industry as it is one of the
largest and most popular brands worldwide. The company has been dealing in hair colour, hair
care products, sun protection, and makeup products as well. The company is well known for its
innovation in different hair care products. It has six large research centres in different parts of
the world, which help the company to develop a new advanced range of hair care products in the
past few years as well. It helped the company to create its brand value and popularity among its
large customer banks. The company started with 100 employees’ team, which is currently around
82,000 today, which indicates the immense success which the company made in the past few
years.
The company is planning to launch its new hair care product, which is Elvive Total Repair 5
Protein Recharge - EverPure hair care range. The Elvive Total Repair 5 Protein Recharge -
EverPure is one of those products of the company which has the most innovative approaches as
well, which is required for a longer run in this competitive world. It is the sulphate range from
Loreal Paris. They are offering shampoo and conditioner which doesn’t contain sulphate in it,
and they are suitable for every type of hair. It will be beneficial to the people who want to try out
different products but don't have any idea about their hair type and its suitability as well. Elvive
Total Repair 5 Protein Recharge - EverPure, this is considered to be a one-stop solution for that
problem as well. The company was aware of one of this common problem of the women
worldwide that they are confused about what would be suitable for their hair type accordingly.
Loreal Paris has been already launching many products earlier, which are sulphate free, even the
company launched some of its sulphate free products as well (Santos et al., 2018).
Elvive Total Repair 5 Protein Recharge – EverPure is a great product so far from L'Oreal Paris.
Thus, it helps to manage the hair problems, and the bonus point is that the product can protect
the hair colour, and it also helps to repair the hair from heat damage. These problems are
getting widespread nowadays because the hair colour trend is famous worldwide. Celebrities
played an essential role in making it more and more popular in past few years as well. Loreal
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Paris identifies that most men and women spend a lot of money on costly hair colouring process
because colouring hair is not a new trend, but these days, it is trendy not only among youngster
as well as the older people too. Customers need some product which helps them to keep the
colour same and would not allow the colour to be faded soon. Elvive Total Repair 5 Protein
Recharge – EverPure is one those solutions from the company which can be very helpful to
protect the hair colour and keep them nourishing as well (Zogaj et al., 2019).
Elvive Total Repair 5 Protein Recharge – EverPure also protects the hair from using different
products such as curler and straightening iron, which will make the hair frizzy, dry and weak as
well in some uses only. EverPure will be very helpful in managing the quality of the hair since if
the customers are using those heat generating products from long. In this product, there is no
harsh sulphate, surfactants and salts which are considered to be responsible for doing the hair
strip, dull and damage as well. Elvive Total Repair 5 Protein Recharge – EverPure, it is a
complete hair care range for men and women both, and it fulfils all the requirements of the new
generation of the customers as well.
Analysis of the market for this product
L’Oreal Paris is already a well known personal care brand worldwide, and it has a massive
customer bank in different countries. The company is launching its new product, which is Elvive
Total Repair 5 Protein Recharge – EverPure. The target market for this particular product is U.K.
which is itself a great place to launch its product and U.K. is considerable as their company can
focus on different demanding needs of the customers because the company can find all age
customers there which would be suitable for the company as well.
The United Kingdom is the world's sixth largest market when it comes to personal care
products, which worth around 10.2 billion euros (Chang & Taylor, 2016). It will be beneficial to
understand that the U.K. would be the best choice for the companies to successfully launching
any new product. The U.K. would be considered to be the best place for one reason, and that is
that it is the fifth highest per capita spending on beauty and personal care products worldwide.
In the United Kingdom, per capita expenditures on personal care products are around 155 euros
in 2017, which is not very less. For successfully launching any product, it is imperative.
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Consumer expenses on hair salon and services have been increased by 3% in 2017, which was
7.4 billion and rapidly growing in the past few years (Chang & Taylor, 2016).
The following graph will help to understand the value of the personal care market of U.K.
The market value of beauty and personal care in the United Kingdom (U.K.) from 2015 to
2020 (in a million Euros)
Source: Statista
The above graph helps to understand that the market value of personal care in the U.K. has
been reached to approx 16 billion Euros and will be expected to be contacted at 16.8billion
Euros till 2020. It helps to identify that the due to customers’ awareness to the new products and
their interests, the market value is getting increased by approx 10% by each passing year so far
(Statista, 2019).
The United Kingdom, according to the market demographics, the hair care products market
share is around 23% to the whole personal care range, and skin care market share is
approximately 35%. Loreal is dominating the industry and it still continues to dominate and
become on top among other different personal care companies in U.K. The company has a
median 2.4% long term growth at 2% and at a WACC (weighted average cost of capital) of
7.9% which is higher than other competitors of the company in U.K. When it comes to the
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EBITDA margins, LOreal has number two positions and secure position to hit at 21.2% which
is a little less than the company which is at number one position.
In the U.K., there are various factors which Loreal should worry about and one of the most
critical factor is its competitors so far. In particular, in the markets of the U.K., the two biggest
competitors of Loreal Paris, are Unilever and Revlon, which are also few of the biggest brands
of personal care range in the United Kingdom market. Revlon was founded in 1932 in New York
and had equal employees’ strength as well. Unilever was founded in 1885 in England. Compared
to Loreal Paris, Unilever generates more revenue sometimes. Both companies give each other
colossal competition worldwide.
The customers of the U.K. are very well connected to the brand itself, and they are very
welcoming when it comes to experience any new product, especially when the company have
many loyal customers there. It would be not difficult for the company to launch new products
there. The other important thing is that the people of the U.K. spend more per person capita in
comparison to people from different countries so far (Bazdresch, et. al., 2018).
Strategy for segmentation, targeting and positioning of the product
Consumer Segmentation
Geographically, the product is basically for protecting the hair and colour and heat damage as
well so the prime target customer will be from the urban cities of the country where the brand
can easily find the customers for this product (Coskun, et. al., 2016).
Demographically, mainly for this particular product, the company will target the customers who
belong to the age group of 15 to 40 years old male and female both themselves. The company
will easily target the college, school going students to the working people there. The income
demographic for the product will be the middle and upper-middle-income group in the U.K.
Psychologically, the brand will be trying to target to hit the youngsters and especially women,
who are very aware of the new products and the ingredients so it would be easy to attract them
quickly for the brands. Adult women use hair colour and curling and stringing iron more often so
they will be more attracted towards the customers (Verain, et. al., 2016).
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Behavioural wise, the customers of the U.K. will be spending more per capita to the personal
care range; they have a welcoming attitude towards the products. On average, every family buys
500ml of shampoo and other hair care products in a month, so the company can try to attract
them (Vidal, et. al., 2016).
Targeting the market
The target market of the company in the United Kingdom, for the new product Elvive Total
Repair 5 Protein Recharge – EverPure will be women of all age group but the focus would be
on the women who belong to the age group of 15 to 40 years old. The product will be especially
design for those women who frequently colour their hair and uses other things such as iron rod
and curling rods to style their hair very often (Oh, et. al., 2015).
The income group will be upper middle class working women of U.K. which plays a massive
role in the economy of the U.K. Most women are working there which means the company can
target them very quickly if proper promotions and awareness creation in next few years as well.
A brand should run different advertisements and schemes for attracting new customers and for
existing customers, the company should run some loyalty points schemes to make them stay with
the company for the long run. Besides that, a company can run different bonus or referral
schemes for the customers, which will be helpful to the company to increase its customer reach
as well (Lei & Moon, 2015).
Positing
The tagline of the brand Loreal Paris says “Because we are worth it” which indicates the
reflection of what position it holds in the market itself. The brand is known for it's quality based
products, and more importantly, it runs a celebrity-packed advertising campaign which helps to
increase their market value all over the world. That advertisement contains different famous
female celebrities in that which were helpful to attract women from everywhere. It is the world's
leading brand when it comes to personal care and beauty range products worldwide (Jin, et. al.,
2019). In the U.K., it dominates the top position among its longtime rivals; the brand holds the
number one position when it comes to personal care products as well.
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Marketing mix for the product
Elvive Total Repair 5 Protein Recharge – EverPure
Product
Loreal has a wide range of products under the brand value itself not only in personal care but
also other different things such as cosmetics and all. The brand is already known for its quality of
the products, and it is one of those brands which are actively satisfying the needs of its customers
as well. The product Elvive Total Repair 5 Protein Recharge – EverPure is a new product from
the brand which helps to increase the customer range itself in the U.K. The shampoo and
conditioner range of Elvive Total Repair 5 Protein Recharge – EverPure has the most
innovative approach itself and able to attracts more and more customers as well (Lahtinen, et. al.,
2018). The product is available in the different price range and product sizes as well and the U.K.
personal care industry is very well known about the brand and its products.
Place
The brand has six different research centres worldwide, which help to understand that the
company itself pay attention to the innovation in its product as well. The brand is available in
130 countries in the world. The company products are available through different e-commerce
websites and company’s websites too. L’Oreal needs no introduction in any part of U.K. It will
be beneficial to the company to launch a new product in the U.K. The brand, and this product is
available through different distribution channels worldwide, and in the U.K., the product
EverPure is available online and offline both the modes. Offline, it is available in various stores
and online, it is available at multiple e-commerce websites though (SAM, 2017). The urban
cities of the United Kingdom are the best place for the company, and metropolitan cities are
considered to be one of the best sites to be launching this product as well.
Price
The brand is known for its ultra-luxury products, from hair care to personal care to different
cosmetics range also. The target market for the company for this product is upper middle class
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working women which indicates the prices are not much low and while keeping in mind the
competition which brand gets from different competitors, it would be not easy for the brand to
survive in this competitive world itself. To manage and hold the top position, it is imperative the
company will understand the importance of growing the middle and lower middle class,
especially when it comes to launching any new product line. Prices should be a little small, or the
company should run some promotional schemes, offers and discounts to the new and existing
customers of the company. It will be helpful to run the new product successfully and manage the
brand positioning in the U.K. market as well (Išoraitė, 2016).
Promotion
Loreal is one of those brands which are known for its quality and promotions also. The
advertisement slogans are beautiful and catchy that they can easily attract the customers,
especially they are pretty memorable for the women. The first slogan which the company used
was 'Because I'm worth it' and the company later changed it and now it becomes 'Because we
are worth it.’ The brand has its advertisements on the premium level and often has that appeal to
attract more customers as well. The brand ambassador and international celebrities are well-
known faces of this brand (Rahmani, et. al., 2015).
For this product, the company should select those celebrities who are very popular for different
experiments in their hair colour and hairstyles as well. The company should also run some
social media promotions such as contests and live chats with celebrities so that more consumers
will be attracted.
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Conclusion
Loreal Paris is one of the most renowned personal care brand in the world. It also is known for
its quality to the products and the company is launching a new hair care product which is Elvive
Total Repair 5 Protein Recharge – EverPure. In this essay, the description of the original product
has been conducted, which helped to identify that major good things about the product. The
target market and customers segmentation and posting of the brand in the U.K. have been
discussed in this essay. Upper middle class working women from the age of 15 to 40 years must
be the target customers of this new product. The 4Ps marketing mix, which included some
recommendations in the context of place, price, promotion and product have been explained in
this essay as well.
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References
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product development with a focus on marketing mix 4P model. Asian Journal of Research in
Marketing, 4(2), pp.98-108.
Išoraitė, M., 2016. Marketing mix theoretical aspects. International journal of research
granthaalayah, pp.2394-3629.
SAM, A.F., 2017. The Effects of Marketing Mix (4P) on Companies’ Profitability: A Case Study
of Automotive Industry in France. Journal of Research in Marketing, 8(1), pp.636-640.
Lahtinen, V., Rundle-Thiele, S. and Dietrich, T., 2018, May. An Abstract: Do We Need to Imply
a Full Mix? 4P Versus 1P. In Academy of Marketing Science Annual Conference (pp. 445-446).
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ventures: contingent roles of market knowledge breadth and tacitness. Industrial Marketing
Management, 76, pp.231-241.
Oh, C., Cho, Y. and Kim, W., 2015. The effect of a firm's strategic innovation decisions on its
market performance. Technology Analysis & Strategic Management, 27(1), pp.39-53.
Lei, N. and Moon, S.K., 2015. A Decision Support System for market-driven product positioning
and design. Decision Support Systems, 69, pp.82-91.
Coskun, S., Ozgur, L., Polat, O. and Gungor, A., 2016. A model proposal for green supply chain
network design based on consumer segmentation. Journal of Cleaner Production, 110, pp.149-
157.
Vrain, M.C., Sijtsema, S.J. and Antonides, G., 2016. Consumer segmentation based on food-
category attribute importance: The relation between healthiness and sustainability perceptions:
food Quality and Preference, 48, pp.99-106.
Vidal, L., Antúnez, L., Giménez, A., Varela, P., Deliza, R. and Ares, G., 2016. Can consumer
segmentation in projective mapping contribute to a better understanding of consumer
perception?. Food quality and preference, 47, pp.64-72.
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