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The primary purpose of this report is to discuss about the PESTLE forces of the brand called Loreal within Canada. It also throws light on the micro factors in relation to company like the suppliers, competitors and the customers.

The report also talks about strength, opportunity, threat along with weakness in relation to the company. It also talks about R & D of Loreal and the innovative marketing in relation to the company.

PESTLE Analysis

Market Environment refers to forces that affects the ability of a firm in maintaining customer relationships that are successful. The understanding of macro marketing environment proves to be crucial in understanding environment and it can help a business in adapting to that of social environment. Loreal is the name of a personal care company that has headquarters in France. It is the largest cosmetics company in the world which concentrates on hair colour, make up, hair care, men’s skin care and skin care ( 2018).  Loreal Canada has headquarters in the region of Montreal that helps in looking after the well-being of the people. This report focuses on the macro along with microenvironment of Loreal. It also elaborates on the strength, weakness, threats along with opportunities in relation to the company. The report also talks about the Research and Development and the innovative marketing practice of Loreal.

Political- The goods that are imported in Canada are levied with federal GST that is calculated at that of rate of 5 % of that of duty paid value of shipment. There are different provinces within Canada that has combined GST with that of provincial sales tax (Wolcott 2017). It has helped in the creation of Harmonized Sales Tax that favours growth of the business. The goods which are subject to GST are untaxed when they are exported from Canada. This helps in favouring business in Canada.

Economic- The economic competitiveness of Canada is sustained with the help of strong rule of the law. The institutional foundations of Canada pave the way for open-market system that helps in growing the industries within Canada.

Social- The regulatory framework in Canada is transparent that helps in facilitating robust business formation within Canada. The burgeoning of different kinds of business has helped in improving the condition of the people living in Canada. This helps in facilitating the operation of business in Canada. The standard of people of the Canadians are quite high that is instrumental in the increasing the sale of beauty products in Canada (Al-Shahmani 2018). The consumers in Canada have aesthetic sense that proves to be an important cause for growing the market of the cosmetic companies in Canada.

Technological- Canada has made advances in the arena of technology that has helped the country in developing in various areas like transportation, communication along with public works. The new technologies has helped in growing and developing various business in Canada. This helps the companies in using social media for promoting the products. Artificial Intelligence along with augmented reality is made use of by the cosmetic companies in Canada that helps in providing the clients with great service.

Micro factors

Legal- The people in Canada are aware about legal aspects in relation to products that helps them in manufacturing products that can cater to needs of the customer. Consumer Laws along with Health and the safety Law helps in taking care of the fact that the products that are made are of good quality that helps the various business in growing popular in Canada (Tournois 2014). A company can prove to be influential in the society in the event of maintaining the legal procedures. The different companies in Canada takes into consideration legal aspects that augments growth of the business in Canada.

Environmental- The climate in Canada is quite diverse that helps the various industries in Canada to flourish. Canadians can enjoy distinct seasons and this proves to be convenient for growth of the industries. Canada has blistering cold winter and the beauty companies in Canada makes products that can cater to the needs of the people within Canada.

The suppliers- There are high-quality suppliers in Canada that helps in boosting the various business in Canada. Transparent relation that is maintained by the various business in Canada with the suppliers helps in growing different business in Canada (Kot and Brzezinski 2015).  There are many kinds of suppliers in Canada like Skincare Distributor Canada and Modern Beauty Supplies that helps in facilitating the business of Loreal in Canada.

Competitors- There are various beauty brands in Canada like Bite Beauty, Nudestix, Ilia, Mac Cosmetics and Lise Watier that lessens the market share for a particular company. It paves the way for less demand in relation to a particular brand that makes the competition very stiff for the Loreal in Canada.

Customers- The companies in Canada have been able to recognize about the different kinds of customer types that helps the companies in Canada to make products that serves the needs of the customers. The powerful advertising efforts made by Loreal helps in drawing and retaining the customers that helps the different business to prosper in the country.

Intermediaries- There are many market delegates in Canada like retailers and the wholesalers that helps in spreading the different products of Loreal in the Canadian market. There are various retailers along with wholesalers that helps in showcasing the various products of the company in Canada.

Company- Loreal in Canada understand the assets that the company have and they about their capabilities that helps them in creating a distinct position in the market. The company in Canada use well the resources of the company that helps them in increasing their position within the market (Tjemkes, Vos and Burgers 2017).

TOWS matrix

General Public- Corporate Social Responsibility plays an important role and it proves to be an important factor that helps a company in being sustainable within the market. Loreal has business practice that is environment-friendly and they take into account unsustainable sourcing along with chemical pollution that helps in them in becoming popular among customers (Kernstock,  Brexendorf and Powell 2017). The media in the present age lays great amount of emphasis on the aspect of sustainability and Loreal takes into account this aspect that has helped in development of the brand.



· The intense competition that Loreal has within the Canadian market from the rival cosmetic companies acts as threat for the company

· There exist lobbying pressure against that of the cosmetic industry that threatens the presence of Loreal in that of Canadian market

· The consumers in the present age tend to look out for value added products and this helps in opening opportunities for Loreal in the Canadian market (Gazzola 2018).

· There are emerging new segments pertaining to cosmetic companies that helps in opening opportunities for Loreal.



· Old portfolio

· The persisting of the management methods of the 1980’s is a cause of weakness for the company

· The revenue growth of the company is slow that acts like weakness for the company

· Loreal is the leader in the cosmetic brand and the popularity of the brand has helped it capturing a large amount of market share within Canada.

· The company lays great amount of stress on R & D that helps the in innovating the products.

· Loreal has international presence and a great strategic position that acts as strength for the company.

Loreal Canada lays focus on the aspect of R & D that helps them in innovating the different kinds of products on the basis of new trend along with demand. Strong research has been able to make create innovative products of the brand that has been capable of generating real results. Loreal makes use of Advanced Research along with Applied Research that has helped in developing formulation system for the company (Phipps and Prieto 2018).  The innovative formulas of the company has helped it in spreading its presence in that of Canadian market. The constant dialogue that takes place between science and that of marketing has opened new fields of the exploration for the company called Loreal. The safety and the sincerity displayed by the company has helped the company in gaining prominent position within global market.

Loreal has been able to develop a tool called dubbed cockpit that helps in measuring ROI in relation to the company. It helps in measuring productivity of the media investment with that of real time that helps the companies in creating products that can serve needs of customer. The tool has been developed with the help of cloud business Domo that helps the managers of Loreal in getting clear view regarding what is working and what is not working in the company (Ahmad, Yunus and Rose 2015).


Market environment is indicative of the forces that helps a company in maintaining good relationship with the customer. The understanding of environment can help a business in adjusting to social environment. The various provinces in Canada has combined the GST with the provincial sales tax. Strong rule in relation to law assures the aspect of economic competitiveness that helps the different companies in Canada. There are various suppliers within Canada that has helped in boosting growth of Loreal within Canada. The presence of many beauty brands has lessened market share in relation to particular company. The customers want to buy value added products and this has helped in opening plethora of opportunities for the popular brand in Canada. Lobbying pressure proves to be a threat in the path of success for Loreal. They lay emphasis on R & D that helps in bringing about innovation based on emerging trends in market. The developing of tool by the name of dubbed cockpit helps to measure ROI in relation to company.


Ahmad, S.N.B., Yunus, S. and Rose, R., 2015. Influence of Attitude on Consumers’ Awareness toward Halal Cosmetics in Malaysia.

Al-Shahmani, H., 2018. The impact of the emerging trends on the makeup market in Europe.

Gazzola, P., 2018. Ethical Behaviour Integrated in CSR: How to create and maintain the Corporate Reputation. Economia Aziendale Online, 9(2), pp.175-185.

Kernstock, J., Brexendorf, T.O. and Powell, S.M., 2017. Introduction: Luxury Brand Management Insights and Opportunities. In Advances in Luxury Brand Management (pp. 1-24). Palgrave Macmillan, Cham.

Kot, S. and Brzezinski, S., 2015. Market Orientation Factors in Sustainable Development and Corporate Social Responsibility,“. Asian Journal of Applied Sciences, 8(2), pp.101-112. (2018). L’Oréal, world leader in beauty: makeup, cosmetics, haircare, perfume - L’Oréal Group. [online] Available at: [Accessed 10 Dec. 2018].

Phipps, S.T. and Prieto, L.C., 2018. The business of black beauty: social entrepreneurship or social injustice?. Journal of Management History, 24(1), pp.37-56.

Tjemkes, B., Vos, P. and Burgers, K., 2017. Strategic alliance management. Routledge.

Tournois, L., 2014. Too many products? Reaching the next billion customers of the beauty market. Journal of Business Strategy, 35(5), pp.3-13.

Wolcott, G., 2017. Restricting Choices: Decision Making, the Market Society, and the Forgotten Entrepreneur. Journal of Business Ethics, pp.1-22.

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