MARKETING MANAGEMENT IN DIGITAL ERA

MKTG8013

L’OREAL

CHRISTABELLA CHIQUITA (2240095763)

BINUS BUSINESS SCHOOL

MM PROFESSIONAL BUSINESS MANAGEMENT
JWC
1. Summary
L’oreal was founded in 1909 by French chemist Eugene Schueller, who
developed a hair color and sold his product to hair dressers and salons. L’oreal
transformed from a small French business into an international comsetics
phenomenon with vision and precise brand management. L’oreal is worlds
largest cosmetics and beauty company. L’oreal has the mission of offering all
women and men worldwide to be the best of cosmetics innovation in terms of
quality, efficacy and safety. It pursues this goal by meeting the infinite diversity
of beauty needs and desires all over the world and make beauty products
available to as many people as possible.

L’oreal focuses on five areas of beauty expertise: skin care, hair care, make-up,
hair coloring and perfume.
L’oreal fall into four different groups: Consumer products with 52% sales
includes brand like Maybeline New York Gariner; L’oreal Luxe with 27% sales
selling premium brand like Ralph Lauren and Giorgio Armani; Professional
product with 14% sales selling brand like Kerastase and Active Cosmetics with
7% sales sold at pharmacies like skinceutical.

L’oreal was expanding the brand into new areas through powerful marketing
arm, they also invest money and time in innovating 14 research centers around
the world to understand the unique beauty routine and needs of different
cultures, countries and consumer. This is a critical moment for L’oreal ro be
success.

L’oreal telling the story about aging population in west, ethnic groups around the
globe, aspiring customers in the east and interest of beauty among men.
L’oreal well known for its tagline “Because I’m Worth It”, where L’oreal now is a
leader who have a local brand with image of international.

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2. Questions & Answer
- Review L’oreal’s brand portofolio. What role have local and global marketing,
smart acquisitions and R&D played in growing those brands?
L’oreal portofolio is L’oreal is one of the largest beauty and cosmetics products in
the world. They offer variety of products in five areas of beauty expertise, like
skin care, health care, make-up, hair coloring and perfume. L’oreal expands the
products based In the local needs. Beside that L’oreal did a smart acquisitions by
acquiring and merging with US companies.

Role that local and global marketing play is they are open minded because they
ready taking a risk from a small French business to an international cosmetics,
they invested heavily in product innovation, acquired ethnically diverse brands,
and expanded into market like China, South America, and the former Soviet
Union. He have the strategy about meet the needs of men and women around
globe and make beauty products available to as many people as possible, which
is make it the product is easy to find. Beside that L’oreal hitting the right target
audience with the right product of segment, it’s really a crucial time to make it
L’oreal became success; they have positioned brand on a very right segment.
About the RnD Team, they help the brand to find a unique beauty routines and
needs of different cultures, countries, and consumer. They do a research until
achieving scientific beauty milestone. Example RnD in Japan developed a
wodercurl mascara to formulated asia women’s eyelash, which are short and
straight. With this product all the asia women was excited to buy this product
because it’s a good positioned that can make asia eyelash became long and
pretty.

So, all the role of local and global marketing is really in-line to each others, which
is RnD find the unique position of product to be sell and global marketing brand
need to make consumer understand about the positioning of product and make
the product available in all place for easy to get.

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- What are the keys to successful local product launches like Maybeline’s
Wondercul in Japan?
The keys of successful local product Maybeline’s wondercrl in Japan is because
they know what asia need, asia want that their eyelash became long. So
Maybeline do the research and give the innovative idea. Where this product is
specially formulated to curl eyelashes which are normally short and straight to
became long and pretty. Between three months the product became the best
seller of the country.

Another reason that I think why Maybeline’s Wondercurl success is because

L’oreal spent more money and time in producing innovative products, they
maintained their RnD team to be focused on product development, L’oreal
defined the needs and beauty concepts of people in different countries and
cultures to satisfy them, example like they launch wondercurl in Asia; this is the
major reason for its global success. They do a research very well and achieved
beauty milestone. L’oreal target market strategy is good, which is they provided
the right product to the right audience or segment. L’oreal have powerful vision
and marketing strategy.

- What’s next for L’oreal on a global level? Who are its biggest competitors? If you
were CEO, how would you sustain the company’s global leadership?
L’oreal is one of the largest beauty and cosmetics product in the world. They
have know the needed of woman and man beauty and L’oreal is supply it. L’oreal
has evolved in Paris at 1930, where today they expand in many countries which
is have 130 countries with a lot of global brand, 27 brand and having sales more
than $30.8 billion.

The next thing for L’oreal on global level is I think they need to capturing newer
markets, example in Africa or India, L’oreal need to know what Africa or India
need, what the beauty needs in that region, so L’oreal can suits the needs of
people in these region and launch new product development. This strategy might
be not only provide solutions to people in that region, but will gain a market share
too, and a million of sales and customer in L’oreal brand.

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The biggest competitors of L’oreal is Lakme, since L’oreal wants to emerging
market share in Asian countries like India, they need to know the consumer
behavior at that region. Because Lakme is a no.1 brand in India.

If I were a CEO how would I sustain the company’s leadership is by putting in

effort to provide the excellent or best beauty and skin care products to people,
since L’oreal was known as largest company and beauty cosmetic in the world. I
would be invest on research and development so I can able to supply products
that match with skin types and are available in a lot of store with competitive
area. So in here I would be very focus on making in innovations that supply the
needs and desire of people, either man or woman and they are ready to spend
money on beauty products.

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3. Thoughts
On the study case L’oreal wants to emerging areas such in Africa and India, where it
expects to find millions of new customer and grab the market share in Africa and
India.
In here L’oreal have delivering the benefits that customer really needed, which is
L’oreal have various category product from basic to premium class. L’oreal have
reach the global through their good innovation and intensive advertising. L’oreal is
really sincere of their product which is they really want to give the best to the
consumer with their good innovation. Beside give the good innovation, L’oreal build
a committed relationship as they hired personal beauty advisors to engage with
customers. About price point L’oreal products are considered a premium brand that
offer an affordable price.
L’oreal is a consistent brand and has always been the first of the beauty business
give the meaningful point of difference for the consumer and they achieved it, with
the slogan “Because You’re Worth It”.
L’oreal make the product easily to find, which is they sold in variety of channels like
department store, retail, online, via direct marketing professionals in the beauty
industry like Salon, etc; so it can fulfill the demands of consumer.
Thought about the strategy that L’oreal have is they engage with the consumer really
good by doing a research to know behavior of consumer and what they need. After
that they do some product development and lookin for a unique positioning to be
inform to consumer. And here’s a global marketing did a good job by doing a
advertisement. In here’ L’oreal never afraid of taking a risk and became a different.

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References:
“About us”, L’Oréal Paris, Retrieved from: http://www.lorealparis.com.au/about-l-
oreal-paris/who-are-we.aspx
“L’oreal Competitor, Retrieved from: https://www.marketing91.com/loreal-
competitors/
“Global Strategy Marketing”, Retrieved from:
http://dspace.lib.fcu.edu.tw/bitstream/2377/31633/3/M0458689105101.pdf