L'Oreal: A Global Leader In Beauty Products, An Essay In Beauty.

Describe the Marketing Strategy of Loreal Paris for Sun Protection.

L'Oreal's Product Portfolio

L’Oreal is a Paris based personal care firm and its products are majorly focused towards skin care, make-up, sun protection, hair color, hair care and perfume. The cosmetics market is rapidly progressing in Australia and this is evident from the needs of the consumer skin care products. L’Oreal is an international brand that has been continuously evolving its brand marketing strategy and tactics to become the world leader in cosmetics range of products. The aspirant young generation is the target market for L’Oreal and the brand has underwent a number of transitional phases. At present, the company has been operating research and development centers in six countries (Slater, Hult and Olson, 2010).

L’Oreal Paris is one of the global leader of beauty products. The company was established by Eugene Schueller in year 1909. The company is known for some of the best cosmetic products in its portfolio. The L’Oreal Paris has made the investment of thousand million dollars in the research and development and more than four hundred patents have been filed. The present worth of L’Oreal Paris is estimated to be about $107 billion dollars. The business of L’Oreal Paris has been growing at double digit numbers. The net profit derived through the cosmetic activities has been 1.6 billion Euros (Abdullah Saif, 2015). The company has its operations in more than 100 countries and employs approximately fifty thousand people. According to the rankings given by Fortune Global 500, the L’Oreal was ranked at 353.  By the end of year 2016, the company had an operating profit of 4.5 billion Euros and shows revenue of 25 billion Euros.

The company launched creative sustainability plan in year 2013 and expects to reach 1 billion customers by the end of 2020. The company has been involved with producing the skin care products that have people to make better choices. The business operations of the company are targeted towards encouraging people to busy sustainable products (Mandal, 2017).

A beauty product enhances the self-confidence and changes the body personality. The L’Oreal Paris group has a separate research and development unit and encompasses 34 brands under its product set. The brands L’Oreal has a brand message- “The one beauty product for all” and challenge your unique persona with boldness through the wide range of products. The company has been successful in positioning itself as the ethical beauty cosmetics and Care Company. The rationale behind the company upcoming with universal product categories for all is to respect every caste, creed and culture. This also takes into account the aspirations of young generations (Varadarajan, 2015).  The widespread L’Oreal Paris brand portfolio encompasses following products-Dark & Lovely, Lancome, Giorgio Armani, Urban Decay, Ralph Lauren, Maybelline. Some of the professional products of L’oreal Brand are-Kerastase, Matrix, Redken, Pureology. Some of the biggest names have been associated with this brand. The professional products of L’Oreal brand are a commitment towards the enhancing looks of women. A different category of product has been launched by the company for the African Women-Dark and Lovely. Beauty is universal and science in itself. The brand understands the diversity of communities existing in Australia and makes an effort to preserve the nature (Phillips and Hallman, 2013).

Marketing Mix 4Ps

The L’Oreal brand encompasses vast majority of products under a single brand name. The company provides latest trends, personalized tips and best skin care and hair styling products. The brand L’Oreal has been successful in reaching out to the African and Australian Women. The company targets the people of different income groups and has been able to create a benchmark in almost every country. The company has been planning to make investments in Australia. The brand L’Oreal has been able to create a monopoly in Australia through its acquisitions. The company has been a big hit in India and planning to expand its operations in Australia (Feng, Li and Zhang, 2014).

 The rationale behind launching a new product into the Australian markets is to comprehend the income groups of different Australian and African women. The idea behind launching a new product in the market is to understand the cultural roots of a particular nation. This makes women courageous and better present to the world. The beauty market is ten billion dollar industry and not only pays massive attention to the women beauty product, but also to the men grooming. Beauty products must be applied with safety and must draw attention from its ancestors.  

The L’Oreal brand was launched with a strong message in society. The company has some of the biggest names associated with its brand-Jennifer Lopez, Katrina and many more to its credit. The study undertaken emphasizes on the different target market groups for brand L’Oreal. The company focuses on product consumerism specifically when identifying the target market for its products. The brand very well positions itself into the market. The L’Oreal brand deciphers the premise behind what are the inherent feelings when a woman is asked about age? The simplest is-the maturity comes with age. The society always wants that women must look beautiful, but the brand L’Oreal Paris has emphasized on boldness of a women through its skin care products. The target customer is between the age groups of 15 to 70. The company beauty and styling experts have tried to answer a beautiful remark on a women-What goes inside a women if, ever had a grey hair. The L’Oreal Paris brand is upcoming with wide portfolio of products that shows a transition of being a girl to woman. The company sustainability programs are targeted towards the point where the pricing does not matters at all. The target customer of L’Oreal brand is mature enough to differentiate between the luxury and necessities (Maglaras, 2009).

Target Market for L'Oreal

The International beauty brand-L’Oreal Paris faces massive competition from Hindustan Unilever, Emami and others. The marketing mix 4P’s have been described below-

Product- the Company has extensive range of product to its brand name. To name them-these include consumer products, professional products, active consumer products and luxury products. The Indian cosmetics industry is undergoing a phase where the beauty products are inexpensive and readily available. What is a one factor that differentiates the brand L’Oreal Paris from others? It is not only the mascara that a woman wears in its eyes, but the boldness depicted through the L’Oreal product clearly differentiates itself from the other brands.

Price-The L’Oreal Brand has launched its retail outlets in Australia and continuously involved with assessing its pricing strategy. The company L’Oreal has adopted the skimming pricing strategy and geography based distribution of products (Du and Chen, 2014).

Place-The Company operates through retail outlets and has a team of professionals that creates awareness regarding the different products to the community. The Australia is witnessing the launch of f L’Oreal beauty salons in huge numbers and available for both genders

Promotion-The Company has been launching different product/brand strategies for promotion and advertising of it products. The company ensures the higher customer involvement in its products through its bold slogans and different category of products (Codini, Saccani and Sicco, 2012).

Conclusion

Customer Satisfaction is one of the key determinants behind the success of a brand. The L’Oreal brand has all its strength in promotion and marketing. The L’Oreal brand is opening doors for virtual marketing and maintaining the pricing balance in different demographic areas. The company has taken a step to change the mindset of women’s through its value and worth (Hinterhuber, 2017).

References

Abdullah Saif, N. (2015). How does Marketing Strategy Influence Firm Performance? Implementation of Marketing Strategy for Firm Success. International Journal Of Innovation And Economic Development, 1(3), pp.7-15.

Codini, A., Saccani, N. and Sicco, A. (2012). The relationship between customer value and pricing strategies: an empirical test. Journal of Product & Brand Management, 21(7), pp.538-546.

Du, P. and Chen, Q. (2014). Skimming or penetration: optimal pricing of new fashion products in the presence of strategic consumers. Annals of Operations Research, 257(1-2), pp.275-295.

Feng, J., Li, X. and Zhang, M. (2014). Agile Pricing: How Online Product Reviews Influence Firm Pricing Strategies. SSRN Electronic Journal.

Hinterhuber, A. (2017). Implementing pricing strategies. Journal of Revenue and Pricing Management, 17(1), pp.1-2.

Loreal.com. (2018). Key figures: brands, employees, sales - L’Oréal Group. [online] Available at: https://www.loreal.com/group/our-activities/key-figures [Accessed 5 Sep. 2018].

Loreal.com. (2018). Organization: Research & Innovation, Production, Distribution - L’Oréal Group. [online] Available at: https://www.loreal.com/group/our-activities/organization [Accessed 5 Sep. 2018].

Maglaras, C. (2009). Dynamic Pricing Strategies for Multi-Product Revenue Management Problems. SSRN Electronic Journal.

Mandal, P. (2017). Understanding Digital Marketing Strategy. International Journal of Scientific Research and Management.

Phillips, D. and Hallman, W. (2013). Consumer Risk Perceptions and Marketing Strategy: The Case of Genetically Modified Food. Psychology & Marketing, 30(9), pp.739-748.

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.

Varadarajan, R. (2015). Strategic marketing, marketing strategy and market strategy. AMS Review, 5(3-4), pp.78-90.