Executive Summary

This task is intended to present marketing plan of new product launch by L’Oreal in
UK market. The company is considered as the major marketer of personal care
products and possess its presence in more than 100 countries. The purpose of the
work is a detailed analysis of the internal and external environment, which includes
the company's SWOT, the PEST analysis and Porter's Five Force model. In addition,
the assignment aims to describe management issues in the current financial
scenario and take appropriate measures to improve the company's revenue through
a clear marketing plan. In addition, the goal briefly describes the SMART goals of the
marketing plan, the strategies that management can consider to bring new products
to market and improve the company's profits in the current economic environment.

This marketing plan focuses on the introduction of new company products in oral
hygiene, the company is well known for personal care and nursing products, but it is
not available in the oral hygiene department, such as toothpaste and mouthwash.
Therefore, this assignment is to define a detailed plan that provides the marketing
plan for importing the company's oral care products. Demand for oral hygiene is
growing rapidly as customers are looking for better products that offer good oral
hygiene. The oral care market is currently worth $ 45 billion and is currently expected
to grow at a rate of 3.1%. years old. . The administration can get better participation
in the oral market by introducing toothpaste and mouthwash that improves human
oral hygiene. The company focuses mainly on personal care products, by involving
oral hygiene, management can improve its product range for customers and use the
existing marketing channel to introduce new products.
Table of Contents
Executive Summary.........................................................................................................................1
Introduction to the assignment.....................................................................................................3
Company profile – L’Oréal..............................................................................................................3
L’Oréal - SWOT..................................................................................................................................4
L’Oréal - PESTLE..............................................................................................................................5
L’Oréal - Porters model...................................................................................................................7
SMART Objectives............................................................................................................................8
Value intention..................................................................................................................................9
Marketing Strategy...........................................................................................................................9
Segmentation, Targeting and Positioning..................................................................................9
L’Oréal - Marketing mix.................................................................................................................10
Key indicators.................................................................................................................................11
Time frame........................................................................................................................................12
Budgeting framework....................................................................................................................12
References.......................................................................................................................................12
Introduction to the assignment
The core aspect of the task is to present a detailed marketing plan of a chosen
company and state the detailed overview of introducing a new product in UK Market.
The company which is considered for the analysis is L’Oréal, a leading personal care
company in the world. The product which is considered for the marketing plan is oral
care products covering teeth whitening toothpaste and mouth wash.

This task intends to perform detailed internal environment and external environment
analysis covering SWOT analysis, PEST, Porters five force model of the company.
Also, the task intends to state the issues which are encountered by the management
in the current economic scenario and take appropriate steps in enhancing the
revenues of the business through clear marketing plan. Furthermore, the task
involves in briefly stating the SMART goals of the marketing plan, strategies which
the management can contemplate in introducing new products in the market and
enhance the profits of the business in the current economic environment.

Company profile – L’Oréal

The company which is considered for the analysis is L’Oréal, a leading personal care
company which has its base in Paris, France. The company is involved in
manufacturing of various cosmetics, hair colour, skin protection and related products
for women and men. The company was founded in 1909 and has its operations in
more than 120 countries, the company records a total turnover of nearly EUR 29
billion and net income crosses EUR 3 billion.

The management is highly focused in offering best cosmetic innovation to all men
and women in the world high quality products which is highly safe and reliable. The
management possess goal through meeting the diversity of various beauty needs
and desires span across the globe.

This marketing plan is focused in introducing new product by the company in oral
care, the company is highly noted for its personal care and grooming products,
however it is not available in the oral care segment like tooth paste and mouth wash.
Therefore, this assignment is involved in stating a detailed plan of providing the
marketing plan in introducing oral care products by the company. The need and
demand for oral care are highly increasing as the customers are looking for better
products which provides good tooth care, the oral hygiene care market is currently
worth $45 billion and is expected to grow at the rate of 3.1% in the next 5 years.
(Markets and markets, 2020). The management can look to seize a better market
share in the oral segment by introducing toothpaste and mouth wash which will
enable in enhancing the oral care of the individuals. The company is mainly focused
in personal care products only, by venturing into oral care the management can
enhance its product line to the customers and can use the existing marketing
channel to introduce the new products. Furthermore, the oral care market is
increasing as the customers are looking for more specialised products like gum care,
whitening toothpaste, tooth decay and freshness of breadth throughout the day etc.
the toothpaste and mouthwash will have specialised organic ingredients like clove,
peppermint and other products which will protect the teeth and also offer better oral
care solutions to the customers.

L’Oréal - SWOT
SWOT analysis

Strengths Weakness
 Largest beauty and cosmetic  Increased competition in the
manufacturer with global personal care products
presence  The cost profit margins are lower
 Higher product offerings in in various product categories
personal care covering both men  Higher dependence of suppliers
and women 
 Enhanced research and
development division which
creates new and innovative
products based on needs and
requirements of the customers.
 The quality of the products is
always high and the
management looks to perform
various test before launching the
product in the market.
 Wider distribution network and
exhaustive marketing
 communication can enable in
reaching the products to the end
customers at ease.
Opportunities Threats
 There is a scope of improvement  There is a higher dynamism
in the product offerings as the prevailing in the personal care
company can look beyond industry.
personal care and beauty related  Higher outlay of cash is needed
products. Oral care is expanding due to large product line.
as individuals are more focused  When the economy is downturn,
in maintaining their teeth and the consumers tend to spend
stop bad breadth. very less on personal care which
 The oral care market is growing impacts the business growth.
at steady pace and the
management can focus in
creating a unique product
offering which can enable in
increasing income and margins
for the business.
 There is a high demand for
organic oral care products.

L’Oréal - PESTLE
Political environment:

The government of UK is very strong and is encouraging the business to expand to

support growing demand. The company is mainly involved in manufacturing of
personal care products and hence it needs to get the necessary approvals from the
government related to the products before launching it to the customers. The
company is obligated to source the safety on usage of the products and must state
that there are no harmful substances are used which may impact the customers. The
recent regulations of immediate ban on animal testing of the products needs to be
adhered and complied at all times (Dixon, 2012).

Economic environment:

The UK economy was growing strongly post Brexit, with precipitate income as of
2019 was nearly 43,600, however the pandemic crisis of Covid 19 has impacted the
economy as the country went for lockdown. This has led to increase in
unemployment rates and the government is focusing to take steps in placing the
economy back on track. Due to the continuous efforts of the government, the per
capita income is expected to reach nearly 42,000 by 2021 and will grow further when
the nation comes out of the pandemic crisis. (Trading economics, 2020)

The consumer spending is expected to increase by 2021 as the pandemic is

expected to end and non-essential stores will be planned to open from April – May
2021. The availability of vaccine supply enables the government to protect the lives
of the people and enable in putting the economy back in track. (Reuters, 2021)

Social environment:

There is a growing need of various personal and oral care among the consumers as
they want to enhance their personal grooming. Most of the toothpaste tends to
possess chemicals which may impact the oral care in the long run, hence the
customers are looking for organic products which can provide long lasting strength
for their teeth and protection to the gums. Today’s consumers are highly conscious
and takes more care in choosing the products, the information technology and other
medium has enabled in providing more data to the consumers (Armstrong, 2014).
The oral hygiene is expected to grow due to increased demand and high focus on
the oral care by the consumers. The changes in lifestyle, eating of more junk foods
and dietary habits has resulted in increased oral damage. The sugar substances
which combine with plaque tends to weaken the enamel and impacts the tooth
decay. Hence, there is a rising need for dental and related care in the country (Ho,
2014)

Technological environment:

The management is poised to undertake various research and development in the

technological environment so that the consumers can get the best products. The role
of various digital and disruptive technologies can enable in understanding the market
sentiment and create products and services to meet the overall need of the
consumers (Onishi, 2012).

Ecological environment:

There is a high need for sustainable products in the country and the management is
looking to manufacture products which reduces the emission of greenhouse gases
on the environment, also focuses in using lesser natural resources, the company is
also focusing in using renewable energy sources for its manufacturing plant thereby
reducing the carbon footprint.

Legal environment:

The legal framework of the country is very high, as there is a higher regulatory and
consumer protection act which focuses in adhering to the standards. The
government has passed strict rules related to advertising standards authority and the
company needs to follow the policies.

L’Oréal - Porters model

This section covers the critical element of Porters five force model of Nairn’s oatmeal
in UK market

Competitive Rivalry:
The competition is high in the personal care and oral care, the major international
brands like Colgate, Glaxo Smith Kline, Sensodyne etc have better market share,
hence L’Oréal need to possess better distribution network in order to enhance the
product offering and attract more customers.

Suppliers bargaining power: The suppliers bargaining power is low as the raw
materials used for manufacturing the products are available from various distributors,
due to availability of the large manufacturing and attractive contract for the suppliers,
their bargaining power is low and the company can source quality materials from
other alternate distributors.

Buyers bargaining power: There are many competitors in the market and they tend
to sell identical products and services therefore the buyers possess more
alternatives in choosing the products, hence the bargaining power of buyers are very
high. The companies need to attract the consumers by offering better products and
enhance the value of such offerings.

Substitutes: There is no major substitute in the oral care industry and all individuals
from child to adult need to possess better oral care and they need to brush their
teeth twice daily. Hence, the need for the products is very high and no major
alternatives are available (Zion, 2019).

New entrants: There is a free entry and exit of the participants in the market,
however the expertise in manufacturing the products and selling it to the consumers
is a complex process which involves more skill and capital; hence the threat of new
entrants is very less.

SMART Objectives
Specific: the specific objective of the marketing plan is to offer new product in the
oral care segment.

Measurable: The management can focus in increasing the overall sales by 8% and
margins by 5% in the first 6 months of product launch.

Achievable: The objective is to enhance the image of the company in oral care
products and to meet the overall demand in the dental care segments (Scott 2013).
Realistic: New offerings in the new segments, as the company was previously
focusing only in personal care products. The launch of the new products can enable
in creating new product line in the oral and dental care segments.

Time: To focus in introducing the product in UK market and get the needed
revenues in the first 6 months of operations.

Value intention

The management will be more intended to introduce products in the oral care
segments covering wide range of toothpaste which has natural ingredients like clove,
peppermint etc which can enable in protecting the teeth from decay, support the
gums and safeguard the enamel for a long-lasting protection, also the company will
introduce organic mouth wash which are free from chemicals in order to stop bad
breadth and support the tooth even after eating sugar-based products.

Marketing Strategy
User profiles

L’Oréal focuses in concentrating the products to adults who are over 18 years of age
for their oral care products which covers toothpaste, moth wash etc. however, in the
future the company will also involve in manufacturing oral care products to the
children’s who are less than 15 years based on market potential (Scott 2013).

Segmentation, Targeting and Positioning

L’Oréal is the product that suits the business to customer market. The business must
focus on customers' requirements and wishes and work to satisfy them. The
customer's purchasing process helps to understand the customer's steps and
different steps when he decides to buy the product. Because L’Oréal is a consumer
product and offers consumer products to its customers, the importance of personal
sales is fundamental. Personal sales are important to L'Oréal as they enable the
company to find its customers directly and provide them with samples or samples of
products that can gain customers' trust and help build relationships with them. The
trusted brand also guarantees brand loyalty to the company. The information
collected by L'Oréal suppliers is very important as it provides the company with the
needs and wishes of its customers, as well as the changes or innovations that need
to be added to meet and meet customer expectations. quality products and customer
satisfaction (David, 2016).

Through the personal sales method, the brand relates to customers. With this
method, the company can serve potential customers, learn about people's cosmetic
preferences and get valuable feedback to help plan sales and market brand
products. After obtaining the details through a personal sales process, the brand's
sales team develops an advertising plan for the product that defines the price and
service specifications according to market needs. L'Oréal's sales team is also
responsible for collecting customer responses, maintaining a valuable customer
database, distributing inventory, preparing revenue reports and maintaining
coordination with other parts of the organization. Loreal strategizes ahead of its
competitors in the market and enables the brand to achieve targeted profits by
increasing sales of various products. L'oreal strives to increase its growth in the
global cosmetics industry, improve its sales target and also increase its profit level
(Salas, 2012). Recently, with the globalization of the economy and the market,
international borders have opened up and products between countries have
recovered in the minds of global buyers. The cosmetics and beauty department is
developed by nature and is very competitive.

L’Oréal - Marketing mix

Products:

The company possess wide range of products in the personal care segments which
rages from hair care, skin care, nail care etc. However, the management has not
focused in providing oral care to the customers, there is a growing demand in oral
care due to poor eating habits and other lifestyle modification, this has resulted in
spending more money on dentist and other medicines. Hence, providing better oral
care is considered as the key aspect in the product line.

Price:

The company is a global brand in the personal care and look to use the image in the
new product segment, therefore the management can focus in using skimming
pricing model in the oral care categories. This will enable the company to maximise
the offering and generate better profit margins in the oral care industry. The
management can focus in using the same pricing strategy of the other personal care
products so that the customers be made aware of the quality of the products (Grant,
2016)

Place:

The company is focusing to introduce the product in UK market, through its own
distribution network. The company possess its own stores and also possess various
spaces in the shopping mall to provide personal care products to the customers,
furthermore the company also has retailer network who sells personal care products
to the end users, these networks can be used in order to market the oral care
products and enable in increasing the market share.

Promotion:

L’Oréal possess integrated marketing communication and network for their personal
care products, the company also uses the traditional channels of print advertising
and other modes, also uses extensive retailers for marketing the products.
Therefore, the company can use these channels in order to market the oral care
products and enhance the offerings to the consumers.

Key indicators

Focusing on market penetration: The management need to use the existing

marketing channel in order to penetrate the oral care segments.

Revenue model: An increase in revenue is estimated 8% and profits by 5%, this is

mainly sourced from the introduction of various products like toothpaste, mouthwash
and related products.

Customer delight: The products should be offered based on the intended users,
this can enable in increasing the customer satisfaction and also enable in attracting
more customers to the product line. The company possess strong brand image in
personal care which can be leveraged in attracting customers to the oral care
segments (Gouldson, 2013).

Sustainability factors

Natural products: L’Oréal will source the products through natural manner from
registered suppliers, the management will focus in looking of various alternatives in
sourcing the perfect products as per government guideline thereby ensuring highest
degree of quality standards is maintained.

Renewable energy: Alternate energy modes will be implemented in the

manufacturing plant; this is to reduce the carbon footprint in the ecology and also
support government guidelines in achieving the climate accord for 2050.

Recycling: The management ensures that the waste is recycled properly and are
according to the rules of the government which has been stated from time to time.
The company focuses in using only environmentally friendly paper and boxes which
does not impact the soil or the ecological aspects.

Time frame
The first phase of the marketing plan is intended to be for a period of 6 months, the
company is contemplating to venture into oral care products so as to expand their
product offerings to the customers (Rothaermel, 2015). The management will use
various social marketing and networking tools in order to understand the customer
preferences of the products, receive the feedback and enable in upgrading the
products so as to meet the overall needs of the customers. The management intends
to use various marketing strategies to reach the end users and enhance the product
offerings for various customers.

Budgeting framework
The management can use a combination of traditional and social media networking
to market the products, also enable in using the existing marketing communication
channel for introducing the product in the UK market.

S. No Budgeting components In %
1 Cost of performing market initial 10%
research
2 Marketing communication 15%
channel
3 Print advertisements and related 25%
sources
4 Social media advertising 35%
 5 Other cost 15%

References

Armstrong, M. and Taylor, S., (2014). Armstrong's handbook of human resource

management practice. Kogan Page Publishers.

David, F. and David, F.R., (2016). Strategic Management: A Competitive Advantage

Approach, Concepts and Cases.

Dixon, A.L. and Tanner Jr, J.J.F., (2012). Transforming selling: why it is time to think
differently about sales research. Journal of Personal Selling & Sales Management,
32(1), pp.9-13.

Gouldson, A. and Murphy, J., (2013). Regulatory realities: the implementation and
impact of industrial environmental regulation. Routledge.

Grant, R.M., (2016). Contemporary strategy analysis: Text and cases edition. John
Wiley & Sons.

Ho, J.K.K., (2014). Formulation of a Systemic PEST Analysis for Strategic Analysis.
European academic research, 2(5), pp.6478-492.

Markets and Markets. (2020). Oral Care/ Hygiene Market by Product. Retrieved
from: https://www.marketsandmarkets.com/Market-Reports/oral-care-market-
80546246.html?
gclid=Cj0KCQjw9_mDBhCGARIsAN3PaFNQYeC1yBV3avlLoxay9BWCFfiAyGnXkjO
31owcuUFeRRkrrVbFlOgaAsc2EALw_wcB

Onishi, H. and Manchanda, P., (2012). Marketing activity, blogging and sales.
International Journal of Research in Marketing, 29(3), pp.221-234.

Research and Markets. (2020). Global Oral Hygiene Market (2020 to 2025).
Retrieved frm:
https://www.globenewswire.com/news-release/2020/05/06/2028197/0/en/Global-
Oral-Hygiene-Market-2020-to-2025-Industry-Trends-Share-Size-Growth-Opportunity-
and-Forecast.html
Reuters. (2021). UK retailers report higher spending in March -BRC. Retrieved from:
https://www.reuters.com/world/uk/uk-consumer-spending-hit-again-lockdown-goes-
barclaycard-2021-03-09/

Rothaermel, F.T., (2015). Strategic management. McGraw-Hill.

Salas, E., Tannenbaum, S.I., Kraiger, K. and Smith-Jentsch, K.A., (2012). The
science of training and development in organizations: What matters in practice.
Psychological science in the public interest, 13(2), pp.74-101

Scott, W.R., (2013). Institutions and organizations: Ideas, interests, and identities.
Sage Publications.

Shabanova, L.B., Ismagilova, G.N., Salimov, L.N. and Akhmadeev, M.G., (2015).
PEST-Analysis and SWOT-Analysis as the Most Important Tools to Strengthen the
Competitive Advantages of Commercial Enterprises. Mediterranean Journal of Social
Sciences, 6(3), p.705.

Trading Economics. (2020). United Kingdom GDP per capita. Retrieevd from:
https://tradingeconomics.com/united-kingdom/gdp-per-capita#:~:text=GDP%20per
%20capita%20in%20the%20United%20Kingdom%20averaged
%2028536.57%20USD,of%2013934%20USD%20in%201960.

Zion Market Research. (2019). Global Cosmetic Products Market. Retieved from:
https://www.zionmarketresearch.com/report/cosmetic-products-market