L'Oréal Marketing Mix (4Ps) & Marketing Strategy
Marketing strategy of L'Oréal through marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion).
L'Oréal Product Strategy:
L'Oréal has a wide portfolio of brands under them. The marketing mix product strategy can be understood by analysing their entire portfolio. They produce products related to all beauty and cosmetics under four major divisions namely
• L'Oréal Luxe : Kiehl’s, Lancôme, Yves Saint Laurent, Ralph Lauren, Giorgio Armani, Diesel, Clarisonic
• Consumer Products division : L'Oréal Paris, Garnier, Maybelline New York, Shampoo
• Active Cosmetics division: Vichy, La Roche-Posay. Sanoflore
• Professional Products division : L'Oréal Professionnel Paris, Kerastase, Matrix
• The Body Shop
Under these product divisions L'Oréal have products like eye-liner, mascara, eye shadow, nail polish, nail polish remover, lipstick, lip-liner, lip gloss, cleanser, foundation, concealer, blush for face, hair color in various shades, hair care, shampoos, conditioner, toners, hair spray and serum. All these are produced and innovated based on customer preferences and needs. These are available in different sizes and price ranges. L'Oréal products are properly tested as per international testing standards without harming any animals in the process.
Image: company website
This concludes the product strategy in L'Oréal marketing mix & strategy.
L'Oréal Price/Pricing Strategy:
Below is the pricing strategy in L'Oréal marketing mix strategy:
L'Oréal is one of the leading global cosmetic brands. The consumer products division brands are distributed in retail channels making it available to the mass market.
As a result they earn huge profits from this division. The professional products are available at salons worldwide so when a customer visits these salons they are ready to pay for these products as they are not priced very high. The Luxe division products are available at supermarkets, cosmetics stores, own brand outlets and even online. However, these products have a premium price and customers are even ready to pay a premium for these products owing to quality and reliability over competitors. L'Oréal prefers to maintain value based pricing strategies for most of their products. L'Oréal is trying to price the products in India comparable to those worldwide by increasing the number of stock keeping units. The brand offers high quality products at a marginal premium as compared to the local brands. L'Oréal always brings about innovations across their various product divisions thereby penetrating the market with different price levels. Thus, the pricing strategy in the marketing mix of L'Oréal is based on premium pricing, competition, geography served and product demand.
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L'Oréal Place & Distribution Strategy:
Following is the distribution strategy in the L'Oréal marketing mix:
Based on their different product divisions their products are made available to the customers worldwide. L'Oréal also makes sure they have vast distribution networks to enable a strong market presence. They have acquired many different companies worldwide to make increase their brand presence. Over the years, L'Oréal has grown and is now present in 130 countries in 5 continents. Each of their products are available at department stores, retail outlets, pharmacies, salons, cosmetics stores, own brand boutiques and even e-commerce websites. With the immense growth of online shopping platforms, the brand has ensured its presence across all these online channels. L'Oréal has its own subsidiary in India with a manufacturing plant in Pune with the most efficient distribution channel and workforce. L'Oréal has trained over 30,000 hairdressers in 300 salons in India in the use of its products. Specially, in India L'Oréal have occupied spaces in malls and retail stores to popularize and sell their brand.
Garnier being their major brand worldwide is made available in various retail shops, kirana stores and supermarkets in India thus targeting the mass market.
L'Oréal Promotion & Advertising Strategy:
The promotional and advertising strategy in the L'Oréal marketing mix is as follows:
L'Oréal being an international brand has its promotions done at various levels in different countries. They also have a very strong ad slogan “Because we’re Worth It” with a strong message to attract customers. The brand has an aggressive marketing mix promotional strategy. It focuses on powerful, independent, young achiever women globally. Attractive & talented women are their brand ambassadors like Jennifer Lopez, Naomi Watts, Cheryl etc for various campaigns all over the world. In India, Aishwarya Rai Bacchan, Sonam Kapoor and Katrina Kaif are L'Oréal brand ambassadors and international face for most of their TV, print and digital advertisements. L'Oréal even use word-of-mouth marketing strategy which has become viral especially in India. L'Oréal also have various CSR commitments like:
• Project CARE which cultivates citizenship by performing various social welfare activities in areas like Child Education, Health, Safety and Environment.
• YOUNG WOMEN IN SCIENCE in partnership with UNESCO to help young women to achieve their dreams and aspirations of pursuing careers in science.
• BEAUTIFUL BEGINNINGS with the objective of providing skilled training to uneducated young women from disadvantaged sections of society to help them either start their own salons or be a part of existing beauty salons thus making them more economically secure
With all these promotional activities and campaigns L'Oréal has managed to acquire a huge market in the world. Hence, this covers the marketing mix of L'Oréal.
About L'Oréal:
L'Oréal S.A is a French cosmetics and beauty company founded by Eugène Paul Louis Schueller in the year 1909 with headquarters in Clichy, Hauts-de-Seine and the main office in Paris. It is the 1st cosmetics group worldwide.
L'Oréal started with its own hair-color business but expanded into cleansing and beauty products like hair care, skin care, sun protection, cleansers and perfumes as well as in dermatological, toxicology, tissue engineering and biopharmaceutical research fields. L'Oréal has its operations in over 130 countries on five continents, operates 42 manufacturing plants, 6 research and development centers throughout the world and own almost 40 different subsidiaries.
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