L'Oreal Paris Cosmetics: Company Analysis And Market Strategy

Issue-1: Description of the Organization

In this report, the selected organization is L’Oreal Paris, a reputed cosmetics industry of FRENCH. These sectors belong to the retailer business industry of United Kingdom along with an international business background. In the first paragraph, a detail information will be attached along with the description of the cosmetics industry. After that 5c’s of L’Oreal Paris Company is discussed as per the instruction and along with swot analysis will be described with consistent data. Therefore, at the time of depicting the business context of the cosmetics organization L’Oreal Paris pastel analysis will be explained. After that procedure of continuing the company will be discussed. In the next portion of the report, a distinct market strategy will be developed for the chosen organization.

L’OREAL PARIS which is a public limited company is the third largest cosmetics company. The company has founded in the year of 1909 in Paris by Eugene Schueller. L’OREAL PARIS has its headquarters in 41, rue martre 92110 Clichy, France. According to these, L’OREAL PARIS has uncountable stores across the world. L’OREAL PARIS’s group CEO and chairman is Jean-Paul Agon. In the organization, there are more than 78,600 employees. For this reason, they can provide excellent service to their customers because a huge number of employees can provide quality service properly. On the other side, L’OREAL PARIS has their cosmetics stores in all over the world, and they have their banking system for their customers (Slater, Hult and Olson, 2010).

One of the best mission of L’OREAL PARIS is to keep their highest position in the market. Customers always want branded products with reasonable price. Therefore, L’OREAL PARIS needs to fulfil their demands so that they can increase their number of consumers which help them to meet their objects. According to this, they appoint well-trained employees so that they can provide quality service to their customers. Infect, the employees also needs to communicate properly with customers so that they can understand their choice or what they want to buy from their company. If they can satisfy the client's choice, then it will be beneficial for L’OREAL PARIS. For this reason, they can get the best position in the market. According to this, the position makes them able to compete with other companies. They need to develop their products continually so that no one can cross their place (L’Oreal Paris , 2007). Providing quality service, a huge number of workers, fulfil the customer's demands help the organisation to get their best position.

Issue-2: 5Cs of L'Oreal Paris

 L’Oreal Paris plc. A top cosmetics brand in 2013 of FRENCH, has a good reputation in Europe all over world and Asia (L’Oreal Paris , 2007) . L’Oreal Paris must evaluate its opportunities, strengths, weaknesses and threats to keep its well-maintained position. Opportunities, Threats recognize exterior problems and strengths, weaknesses emphasis on internal issues. That is why SWOT analysis is necessary (Van?k, Mikoláš and Žváková, 2012).

Strengths: L’Oreal Paris is a strong retailer brand all over the world. It offers suitability, value for money, products' wide range and locally-sensitive management. L’Oreal Paris has numerous stores all over the world. There are small stores like L’Oreal Paris Maybelline and L’Oreal Paris garnier, the body shop for the consumers to shop more conveniently. Online shopping is their other strength. They keep long-standing relationships with customers by giving eye-catching prices.

Weaknesses: L’Oreal Paris expanded into clothing, furniture, food, insurance and economical services. But it also has weaknesses. L’Oreal Paris’s earnings have been obstructed by bad transactions and private insurance claims. L’Oreal Paris has a lack of experience in smartphones' market. L’Oreal Paris must invest an enormous amount of money in web technologies.

Opportunities: L’Oreal Paris has opportunities like invest their 80% investment in body care products in China, Malaysia, Thailand and South Korea. Customers who are busy through their daily lives get benefits with online shopping. L’Oreal Paris is working on this section. Individuals can be accommodated through L’Oreal Paris’s finest branding and wider value (Sawant, 2010).

Threats: L’Oreal Paris has too many threats in the surrounding market. They are the target of steady competition from IOMA, LANCOME, CHANEL, and SEPHORA for their first position in FRENCH skin care products. L’Oreal Paris manages to resist the takeover of IOMA by L’Oreal Paris. LANCOME is L’Oreal Paris 's biggest competitor, and it has the resources, funds, experience and necessary skills to harm L’Oreal Paris .     

The managers and employees play an important role inside the customers. Mainly the managers and workers mainly serve the company to the customers. The managers of the company give training to their workers how to give quality service, Communication Processes, etc. A good employee can be capable of providing good service which can give benefit to the organization.

According to these, the employees who are not able to afford good service, disappoint the consumers very much. Some employees do not listen the customer's choice properly and give the wrong product to them. Therefore, it can decrease the number of the client in the organization (Lax and Mau, 2013). In this way, sometimes they cannot provide any response to the consumer's so that they stop to buy their products. On the other side, the main reason is to provide excellent products. If their product is not okay or not develop, then it creates an adverse effect on the customers (Clark, Huckman and Staats, 2013). 

Customers

The cosmetics company L’OREAL PARIS is entirely dependent upon their suppliers. The suppliers provide raw materials to the organization within the price. Therefore, the group make their products with these quality materials and sale in the market. Therefore, it is important for L’OREAL PARIS to maintain a good relationship with suppliers so that they can get the proper materials and also need to fulfil their demands.

According to these, the distributors are also important for L’OREAL PARIS. They deliver the products to the shops for the customers who are not able to go to the supermarkets. Therefore, if the company do not uphold a real connection with them, they do not deliver their products.

The companies like IOMA, LANCOME, and CHANEL try to cross the position of L’OREAL PARIS by providing the products within price to the customers. Therefore, L’OREAL PARIS needs to develop their products or need to make new products for the consumers. It helps them to maintain its position in the market and also can be able to compete with IOMA, LANCOME and CHANEL.

Political: L’Oreal Paris has been affected by a tax measure that has been adopted by the FRENCH Government. For increasing government revenue, the FRENCH Government increased the VAT in 2011. Thus, the sales revenue is affected by the growth in the tank. Therefore it creates a harmful effect on profits.

The FRENCH Government has suggested approving a massive tax to limit the medical problems and to control obesity (Yüksel, 2012). L’Oreal Paris launched a new healthy skin products of  range.

Economic: The FRENCH economy is recovering from the financial crisis. It forecasts higher economic development. It is a positive sign because it helps in the elaboration of the supermarket industry. The unemployment's rate increases when it economically collapses. Thus, it results in lower nonrefundable earning for the British. So, revenue development is aroused by the recovery from the economic collapse.

Social: A decrease in the birth ratio and an increase in anticipation of human life led to change in the sensitivity of people which may be taken into account. The aged persons face mobility issues. Online shopping is for skin care products things is an approach that is well adopted. They are keen to use this service. L’Oreal Paris has responded well to this change.

L’Oreal Paris was suspected of the horsemeat scandal. This exaggerated the perception of consumers negatively. This affected L’Oreal Paris ' image.

Collaborators

Technology: L’Oreal Paris must be observant to technological improvements. Mobile technology helped consumers because they can get their favorite wine using their mobile.

The overviews of e-grocers led to a disturbing tendency in the supermarket. Innovation in technology which is initially unable to reach the current technology results in annoying techniques. Consumers give the response to the present technology. Such technology will seem unpleasant to L’Oreal Paris.

Environmental: The increase in temperature is leading to an ice-free summer in future. Such evidence is leading to upper prominence on environmental sustainability. L’Oreal Paris is committed to reducing the ingestion of energy and exploitation of greenhouse gases.

Legal: Many of the laws affect L’Oreal Paris (Panksepp, 2011). The agricultural products are being reformed by the cap.

L’Oreal Paris is involved with savings, credit cards and loans. The Financial Services Act was executed in the FRENCH. This act results in three new bodies. These are the Prudential Regulatory Authority, Financial Policy Committee and Financial Conduct Authority.

Customers’ need: company has the knowledge about the targeting clients of the local region or the outside. The experts of this company are very much aware of their customers need. To understand their customers need specialists of this company L’Oreal Paris are well trained (Lax and Mau, 2013).

Threats: in a case of any threat L’Oreal Paris has to take the precaution first. IOMA, LANCOME, CHANEL etc. Are the great cosmetics industry of FRENCH whereas the L’Oreal Paris also belongs from the same region (Bourgarel, Wauquier and Gonzalez, 2010). Every time all those competitors are engaged in targeting the customers of the L’Oreal Paris.

Context: in the case of business context L’Oreal Paris always follow the same business context to rule in the FRENCH market. To understand the business context of L’Oreal Paris pastel analysis is very much essential.       

Collaboration: to maintain the healthy interconnection within the business organization collaborators plays an essential role. Collaborators are suppliers, distributer and customers (Fenetahun Mihertu, 2017).     
Issue 4:

Marketing strategy is one of the major parts of business, and it is the very much overwhelming task. It is used in business for the promotion of new products in the market. While developing the market strategy for the product a proper plan of action should be made accordingly so that, it gives detailed information about customers, targeted persons, techniques, and methods used in the marketing research. Therefore, the expert who is involved in the particular project must make a proper summary of the project by collecting data from different organizations(Kim and Hallsworth, 2015).

Competitors

L’Oreal Paris is using a different strategy in marketing which is the method of mass marketing. Firstly they differentiate their customers of different classes, and they target customers specifically according to ages such as children, adults, senior citizens and they also serves as many as customers possible. The company tries to reach their target market by providing attractive offers and discounts to their customers so that they can reach as many customers as possible.

L’Oreal Paris has got a goodwill in the market for providing their best to the customers, and therefore, they can retain their position in the world market.

This report evaluates the value proportion of L’Oreal Paris private limited company towards their customers

Knowing customer needs

Recognizing Customer Segments

Offering more products to customers

Improvement in the quality of service

Targeting to the customers’ needs

Focusing on the branded products

Price competition

Positioning statement tells a short description of the market that has been targeted by L’Oreal Paris and also gives a clear picture of the market(Kim and Hallsworth, 2015). It helps to keeps focus on the brand value of the products, is also focuses on the different needs and wants of the customers.  

Recommendation: L’Oreal Paris has to maintain their excellent customer services to retain their position in the global market (Kim and Hallsworth, 2015). Along with primary objectives, aims and targets should achieve through applying the advanced mechanism. Therefore, product quality, the brand fame of L’Oreal Paris, etc. should enhance through the utilizing the strategy. 

Conclusion:

This report is consist of L’Oreal Paris and belonging industry of it. There is detailed information about the customers, collaboration or stakeholders, verities of a product, etc. are described with details. Along with these swot analysis, pestle, 5c also stated with useful information. In the last portion of this report, a brief recommendation elaborated to develop the faults of L’Oreal Paris to retain their position in the market.  

References

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Slater, S., Hult, G. and Olson, E. (2010). Factors influencing the relative importance of marketing strategy creativity and marketing strategy implementation effectiveness. Industrial Marketing Management, 39(4), pp.551-559.

L’Oreal Paris , G. (2007). Editorial [ New Advances in Alzheimers Disease: From Biology to Therapy Guest Editor: Giuseppina L’Oreal Paris  ]. Current Genomics, 8(8), pp.484-485.

Panksepp, J. (2011). Empathy and the Laws of Effect. Science, 334(6061), 1358-1359. https://dx.doi.org/10.1126/science.1216480

L’Oreal Paris , G. (2007). Editorial [ New Advances in Alzheimers Disease: From Biology to Therapy Guest Editor: Giuseppina L’Oreal Paris  ]. Current Genomics, 8(8), 484-485. https://dx.doi.org/10.2174/138920207783769558

Van?k, M., Mikoláš, M., & Žváková, K. (2012). Evaluation Methods of Swot Analysis / Melody Vyhodnocení Swot Analýzy. Geoscience Engineering, 58(2). https://dx.doi.org/10.2478/gse-2014-0036

Yüksel, I. (2012). Developing a Multi-Criteria Decision Making Model for PESTEL Analysis. International Journal Of Business And Management, 7(24). https://dx.doi.org/10.5539/ijbm.v7n24p52 

Bourgarel, M., Wauquier, N., & Gonzalez, J. (2010). Emerging viral threats in Gabon: health capacities and response to the risk of emerging zoonotic diseases in Central Africa. Emerging Health Threats Journal, 3(0). https://dx.doi.org/10.3402/ehtj.v3i0.7099

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Fenetahun Mihertu, Y. (2017). Assessment on the Perception of Invasive Alien Spices (IAS) of Farmers and Stake Holders on the Agricultural Sector in Eastern Ethiopia. American Journal Of Bioscience And Bioengineering, 5(1), 34. https://dx.doi.org/10.11648/j.bio.20170501.16

Kim, W., & Hallsworth, A. (2015). L’Oreal Paris  in Korea: Regulation and CosmeticsChange. Tijdschrift Voor Economische En Sociale Geografie, 107(3), 270-281. https://dx.doi.org/10.1111/tesg.12145

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