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L’ORÉAL PARIS

MARKETING PLAN

L’ORÉAL MARKETING PLAN

NURHAN UZUNLONDON SCHOOL OF BUSINESS AND FINANCE MBA INTAKE-3

GROUP B A4018404


This report explains the marketing plan improved eye make-up cleaner called ‘L’oeral Double Effect eye make-up cleaner’.


“Because I am worth it.”

• The L’oreal group has 23 international brand such as; L’oreal Paris, Maybeline, Lancome, The Body Shop, Vichy, Diesel, Cacharel, Armani, Matrix, Redken, etc

• The groups products are professional products, consumer products, luxury products and active cosmetics.

• L’Oréal is entering its second century of beauty with an even stronger belief in its mission: to offer populations all over the world products attuned to their needs, their cultures and their aspirations. (L’oreal annual report, 2009, p.1)

• L’oreal has been chosen an ideal employer by the business students in 2005.

• One of the most fundamental awards for the company ‘World’s most ethical companies’, it was chosen in 2010 which is very crucial subject in today’s business life because people do eager to know who makes the product, how is product maden.


• L’oreal is an international company and their product is selling everywhere in the world, however depends on the cultural, economical, social factors women’s demands are quite different from each other. L’oreal offers different product different countries in order to give fulfilment to all women. ‘L’oreal Groups received the Diversity Best Practices 2004 Global Leadership Award for embracing diversity, not only in their employees, but also in their consumers.’(googleusercontent)

As mentioned above L’oreal advertising expenses are fairly high because of the company believes that profit after advertisement will be increased.

As mentioned above L’oreal one of the largest cosmetics and beauty company in the world. L’oreal believes that everyone pursuit of beauty hence their mission is find the hidden beauty and this is the company’s value definition.


L’ORÉAL MARKETING PLANL’ORÉAL MARKETING PLAN


L’ORÉAL MARKETING PLANL’ORÉAL MARKETING PLAN

In recent years dark eye make-up is really popular among women, they use black eyeliner, dark eye shadow.



Unfortunately cleaning process more difficult and women are struggle to clean it properly. In the market there is lack of eye make-up cleaner products, that is why this ‘Double effect eye make-up cleaner’ is fully meet women’s needs.




Situation AnalysisL’oreal is well-known and very

longstanding brand however, in order to maintain in the market place they

need to develop their products against to their competitors. This product will bring another perspective to the world

of cosmetics.



Market AnalysisL’oreal is launching quite different product the other competitors. It offers make-up cleaner with little make-up remove towel. It will be applying the eyes softly before use ‘L’oreal absolute eye make-up remover’. Beside the existing customers new customers also will meet the brand of L’oreal because of offering completely different product to the rest of it. Moreover this little towel helps to the eye muscles in order to work more regularly although, this is not another, this is product line extension, addition to ‘L’oreal absolute eye make-up remover’ so that the cost will not be much higher than the old product because this is only developed the old product.



Target Markets‘Makeup is an essential part of most women's look from a dab of blush to

luscious, shiny lip shades, women luxuriate in using make-up to enhance their natural beauty. There are cosmetic choices for the

career woman, the mom-on-the-go and even the pre-teen who receives her first

make-up kit from mom. Each has her own makeup needs, and cosmetic companies work to target their brands accordingly.’

(ehow, 2010)



Market DemographicsCustomer characteristics depending on conditions varies such as; demographic,

geographic, socioeconomic, lifestyle/personality. (Wood, 2007, p 67)Demographic: Age, marital status, gender

Recently, making-up age has down to age 12 -13 especially in some teenagers so that new target group has to be for young girls as well.

- It is true that beautiful and well-groomed women are more attractive than successful women in the work place therefore women need to take care of

them more than before.- Marital status also fundamental in order to using the products after marriage some women giving up make-up so these groups need to be encouraged to do

make-up again.


“Because I am woth it.”

This product is often preferred by women who do make-up regularly.



Geographic: Global, hemispheric, national, state, city, postal code, climate, rural etc. urban (Wood, 2007, p.67) This is clearly known that urban area’s people pay more attention that rural area’s people therefore is preferred

in urban area.Climate is another crucial factor because in some

countries temperature is quite high all year therefore it is not able to use make-up with hot weather.



Sociaeconomic: Income, class, vocation, education, religion, ethnicity.

-According to some religion (Islam) make-up is not allowed to do it so it will be difficult to find a place in that countries such as Saudi Arabia. So

the market is not likely being there. Europe, America, Asia can be the pilot area.

- It will be more common among more educate women.

- It can be affordable among the women who have high income and middle income.



Lifestyle/personality: Attitudes/opinions, interest, tastes

and preferencesUsers who enjoy doing make-up and

some people make-up for only pleasure, moreover if people know

that it is easy to clean eye make-up, more and more women start to do it. Because it is really difficult to clean it

properly.


Market Needs L’oreal provides eye make-up

cleaner with new towel in order to get better result.

Market Growth ‘Being a highly efficient company

and the world leader in our business is not enough. Our ambition reflects our responsibility to be one of the most exemplary companies of the 21st century


L’ORÉAL MARKETING PLANSWOT Analysis

External audit: identify opportunities and threatsThreats: Organic products are very popular in these days so that this has

been a major blow to the cosmetic sector. A threat for the company so L’oreal needs to mention that they use natural ingredients

Opportunities: Double effect eye make-up remover prevents the formation of eye bags by running the eye muscles. As a result of that the product helps to increase of L’oreal sales and revenue. Besides being eye make-up removal, it also can be used for a massage tool.


L’ORÉAL MARKETING PLANInternal audit: identifying strengths and weaknesses

Strengths: One of the L’oréal’s strength is producing environmentally. Reputation of the brand. Another strong aspect is working conditions which are moderately significant issue and therefore as can be seen above L’oreal is working hard in order to provide safety and health working conditions.

Weakness: Transition to the produce is a long procedure due to organizational structures. There are loads of sub-branches and for the final decision, they need to approval of the decision in order to go into the manufacture.

Another weaknesses is higher advertisement and promotion expenses, from 2008 to 2009 advertising spending increased by 1.03% as a consequence with lower sales rate, higher advertisement expenditure also decreased the gross profit 44.6 m Euro in 2009 compared with 2008.( L’oreal annual report, 2009)



Competition L'Oreal is more specialized than Procter & Gamble, and outspends Revlon on R&D, and both facts help L'Oreal remain a leader in the cosmetics market. On the basis of revenue, L'Oreal is much larger than Revlon, Avon and Estee Lauder, therefore L'Oreal has more money to spend on marketing which is an extremely important factor to success in the cosmetics industry.’ (wikiinvest, 2010) As mentioned above, L’oreal is powerful company in the market thus the product which is going to be produced, will place itself in the market clearly and easily.


L’ORÉAL MARKETING PLAN While putting a new product on market, it will

be liked by women and customers, because of the good reputation of L’oreal and also women are trusting this brand



“BECAUSE I AM WORTH IT”