L Oreal Marketing Analysis Marketing Essay


Managing a successful business is not like a field of dreams; you might build it but it could not become a reality. Marketing is all about making your product known to consumers and persuading them to use. A well-organized market plan must be developed and unbeaten marketing strategy must be followed to fully capture the hearts of a huge number. You must consistently make people aware of your products and service to make it effective. L'Oreal being truly a brand alone would be an added advantage for the launch of any product.

This market plan, like others will be a street map which would guide us to the path towards our vacation spot.

I would be starting the L'Oreal men's line of products including Moisturizer along with its existing products of deodorant, move on, after shaving cream and so forth. The literature review of the forex market plan would involves it marketplace, situational examination, it macro environment and competitive factors, along with branding and product life pattern. There will be a set of key research questionnaires' with its analysis, accompanied by implementation.


1. 1 Company Profile

L'Oreal is a respected French brand, with 23 global brands in 130 countries having 64, 600 employees doing work for it. Its brands provide a turnover of more than 50 million Euro's. Creating a collection of powerful, international brands, L'Oreal gets into the 21st century by embracing variety in its global growth agenda. (Source: www. loreal. com)

1. 2 Company Mission

At L'OR‰AL, we think that everyone aspires to beauty. Our objective is to help women and men surrounding the world recognize that aspiration, and point out their individual personalities to the full. This is what gives so this means and value to our business, and to the working lives of our own employees. We could pleased with our work. (Source: www. loreal. com)

1. 3 Company Objectives / Marketing Objectives

According to the business, the creation of your strategic marketing team is a "consequence of the decision to predict worldwide evolutions, in order to steer the group towards essential transformations in the regions of tactical watch, consumer understanding, marketing ingenuity, advertising creation, and digital communication and syndication methods".

(http://www. marketingmagazine. co. uk/news/1030103/LOrEal-brings-marketing-executive-committee/)


2. 1 Market Summary

The market stats are identified in the Desk A. (See App. A)

2. 1. 1 Market Demographics, Needs, Trends

Analysis consists of

Actual and potential market size:

Estimation of total sales to judge the market share.

Identification of UK submarkets for men's'.

Potential Regions of development like diversification and concentrate on men's products.


General trends examination and critical factors behind these changes with regards to UK market which involves multi ethnic environment.


Analysing the potential customer and their decision making factor for buying something based on the idea that the economic downturn has terribly affected the households and emerging men's frame of mind towards their individual care.

Information on what, when and where the customer purchase the product.

2. 2 SWOT Analysis


L'Oreal's eye-sight as a team concept.

Continuous research resulting in innovation.

Passion for work.

Developed fields of dermatology and pharmaceutical.

Its mass market stations.


Decentralized organizational framework - difficulty in control of subdivisions.

Profit margin low in comparison of rivals.



Brand image.

Benefit of patent rights

Emerging mens' market


Growing competition.

Economic crunch concern and spending patterns.

2. 3 Competition

While getting into UK market, Porter's five pushes would be beneficial to consider about the opponents.

Potential entrants: This might be dependant on barriers to entrance. Due to its large scale operation, L'Oreal is able to control its costs.

Substitutes: All products have problems with common substitution; however buyer's propensity would be high due to the very fact that lots of an alternatives are available. As men are less into fashion, L'Oreal would need to have an intensive market research.

Competitive rivalry: The stage of industry life routine is one of the reasons to result. Competition could go fierce as those who lead have strong brand personal information, heavy marketing and sales strategy and high capital expenses. (Desk B - See App. A for product life routine)

Buyers: There exists mass market available in UK, thus heavy marketing and product differentiation will be the major tools. As brand personality plays a critical role in the buying behaviour; well-built identity would gain consumers trust and commitment. Also many buyers are price delicate and switching cost is low for the customer.

Supplier: In essence, there is hardly any differentiation one of the suppliers making suppliers' bargaining vitality non-existent scheduled to option of so many suppliers. Conglomerates such as L'Oreal have an absolute advantage and electricity over their suppliers.

2. 4 Macroenvironment

Firms that are skilful at monitoring and analysing the business environment are said to perform much better than those which are not (Norburn 1974).

Political / Legal factors

Political structure of any country must be looked at when widening market internationally. L'Oreal, a French brand being in European Union would not be having problem in this respect, having sound relations.

b. Economic Factors

These factors have to be considered from a wider point of view, since economics is concerned with allocation of resources; local economic conditions have to be considered.

Currency Exchange Rates: The fluctuation between Pound sterling and Franc need to consider for L'Oreal's financial assertions.

Cost of Capital: Bringing up capital beyond your firms' home country may not be possible the majority of enough time, so multinationals like L'Oreal have to consider the expense of borrowing which may differ from country to country.

The transportation and inventory handling cost need to be budgeted for its distribution in UK market.

Social/Cultural/Demographic Factors

The central factors for changes in consumer behavior are the key values and values socially, culturally and consistent with fashion around which would revolve the main element tactical factor for L'Oreal. As men are becoming more conscious with skin care and hairstyles, it would be just switching their needs into needs and needs. Also anticipated to global convergence of preferences and needs, some experts declare that the tastes and needs of customers in various countries are becoming increasingly similar, which includes been labelled 'global convergence' (Levitt 1983).

Technological Factors

An invention may render a firm's technology outdated or it can result in the creation of totally new companies. Three important issues to consider are global technology scanning and technology clusters, the surge of the knowledge based overall economy, and the spread of the internet.

Some experts have argued that the internet has not only brought services and new distribution stations but also changed the way we conduct business in general. Don Tapscott (2001). As online buying is the most used forms in UK market, L'Oreal could benefit from this plan.


Today the global market is signified by way of a fiercely competitive environment in which the important goal for companies is to capture increasing comes back to scale while reducing / minimizing costs of development with great swiftness and versatility (Kotabe, 1990). L'Oreal as a global chain tries to achieve these focuses on through its constant R&D innovations to be able to build products that are marketable and also have a significant turnover within various sections and sub-segments of the international market (Elisa, ND).

3. 1 Market Research

L'Oreal endeavour to analyse its competitor's products to be able to evaluate the viability of its improvements during new product development process through L'Oreal's R&D portion. It expends about 20% more on its R&D for new product development when compared with its competitors such as Procter & Gamble and Unilever, occupying number 1 position in the market (Elisa, ND)*

3. 2 Target Market and Positioning

It would a mass marketing affecting young university/university grads, young job pros and the niche market fashion industry of UK.

Marketing is a dialogue, not really a monologue. Listening to customers has many proportions but it is generally an attitude towards customers as productive partners, not passive targets. This involves taking a look at things from the customers' viewpoint.

Just "placing some advertisings" isn't specific enough to provide as a marketing purpose. The real so this means of marketing is not about advertising and offering but deciding on the best customers in the first place, then being ready to put them at the centre and build your business around their requirements, listen to them and react to their changing needs. (Refer Stand C. App. A)

3. 3 Marketing Mix

A successful marketing mixture which involves

To have the right product

Sales at the right price

At the right place

With ideal promotions


The reason for start of men's product line in UK is to reposition it to make it acceptable for new users as part of long-term plan.

"Hydra Energetic moisturiser is L'Oreal's No 1 men's skincare product, providing over fifty percent a million devices every year". (Source: EPOS data YTD 5th December 2009)


Researching client's view about charges is important as it specify how they value what they want for as well as what they want to pay. Pricing, since is the sole factor for having sales income, its awareness revolves around customer's affordability notion. L'Oreal would be following the price penetration strategy for its men's product as researched about 52% men declare that purchasing skincare is led by price. (http://www. loreal. co. uk/_en/_gb/pdf/LOreal_Mens_Grooming_Report_FINAL. pdf)


Getting the right product to the right place at the right time will involve the syndication system. The circulation route design of L'Oreal offers full concern to the product concentrate on customer group orientation, it includes (1) a variety of sales route for end users to be able to see and purchase products anytime (2) mid-level brand, such as L'Oreal Professional Mane limiting it to head of hair salons and professional head of hair stores. (3) Specific products usually through the major metropolitan areas in the professional pharmacy distribution; (4) high-end brands such as Helena to be available at counters to be sold.


This consists of interrelated tools like advertising, sales promotion, direct marketing.

All of the are essential about getting the right meaning to the right people in the most effective way. Moore (2004) says: "Advertising is not just about the things we buy. It's how exactly we experience things, including ourselves. That's why is it interesting. "

L'Oreal can take stars as brand ambassadors like it had been as part of their marketing promotions.


Every company who would like to create its brand presence to be able to connect itself with market spends lots of time and work for a perfect company logo, its tagline, its design words and the tone of voice with regards to its marketing vehicles.

It models the firmness for both company's short-term demand and permanent credibility in market. Together with the well renowned name of L'Oreal, getting a mantastic way towards its men's products, a tag type of "Surreal with L'Oreal" would be a catchy insignia.

L'Oreal uses a line brand strategy.


"Marketing is the skill of getting visitors to change their brains - or even to maintain their mindsets if they're already inclined to work with you"

New product development is the most crucial stage for a business and it holds significant risk in the context of product failures that might occur immediately after their launch in the market. The product failing rate is often as low as 30% as high as 90% in this respect. (Antil, J. 1988). The globalization and differing customer tastes would assist L'Oreal using its quest for creativity, excellence and diversity.

A plan won't happen by itself. It must be changed into living document (Refer App. A - Major research). L'Oreal would have to make duties for monitoring progress and going after up overdue activities. Looking at progress will help to learn from mistakes so that improvements for future programs can be produced. (http://www. businesslink. gov. uk)

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