Case Memo

Push and Pull Media Strategies at Loreal

October, 2015

(http://payanywhere.com)

Dedy Purwanto

RSM
Erasmus University Rotterdam

Question 1 (what is the decision to be made or critical issue?)

Issue Tree

How to use social

media to cater
trend

3. Pricing issue

1. Less rigorous
information on what
customer really
looking for ?

2. Uncertainty
on trend

4. Minimal usage
of social media

3. Lack practice on
how to match the
product with the
trend

Fads VS Trend

Lack practice on
how to push by
SM

Value proposition,
differentiation ?

Quantitative
data ?

Lack practice on
how to pull by
SM

Marketing
communication
and Branding

Qualitative data
?

Figure above shows how to find the main problem or challenge in Loreal Case. That can be made
by this following step :
1. List all the problems, challenges, and questions that are raised in the case
2. Classify them into few categories. Here, there are five categories
3. List the problem branch per category
4. Having analyzed this map of problem, then develop the main root of challenge. In this
case, it is lack of knowledge on how to implement social media for 3 objectives : finding
the trend, pull strategy, and push strategy
5. In addition, to solve the main problem, next step is ordering the process from 1 until 4, as
shown in the tree

Question 2
Analysis of the alternative

Cater

the

Trend

(CHALLENGE 1)

Social Media

Pull Strategy

(CHALLENGE 2)

(CHALLENGE 2)

Create pages in social

media
Discount and price
Showrooming
How to videos in YouTube
Integrate
website
with
social media

Create pages in
social media
Gamification
(competition)
Prize commission
for top reviewer
and promotor

Big data research

service

AdWords
SEO
Paid advertising

Google Plus

Market research
(survey and focus
group)
Insights
from
hairdressers,
fashion leaders
Benchmarking to
competitor

Partnering
(commission
based) with influencers
Sales
Offline event
Mobile apps
Benchmarking to competitor
Non-industry benchmarking
Paid banner on websites
Paid
advertising
in
traditional media

Create a platform
Recruit
hair
advisors
from
customers
(best
practice
:
Saphora)
Celebrity
endorsement
Mobile apps

Google/
search
engine

Media

(Platform,
Influencers,
Beauty
Expert,
etc)

Other

Big data analysis

Social
Media
Listening
Gamified research

Push Strategy

There are two main challenges to solve this case, as shown in matrix above. Alternative solutions
are provided for each challenge in conjunction with media that are going to be employed
respectively.
Alternatives for Challenge 1
There are at least four questions in Challenge 1:
To analyze fads or trends, to whom Loreal should talk to?
Which contents should be available in website to meet the customer motivation? Can
Google help to get insight for this?
How to find the information on the trend? How much money to spend?
How could Loreal create the most added value to customer ?
Several alternatives have been provided to answer the question above. Each media has its own
aims, for example:
Besides listening and immersing the conversation about hair-dress in social media, gamified
research would be also helpful to attract and engage more SM users to participate in a
particular survey (either quantitative or qualitative). For instance, the survey is made in
form of animation or games, also there will be door prize for selected respondent
Big data research could be also made not only through google but also salesforce.com that
has proven features to answer this challenge
Looking at what other competitors do to answer this question.
3

Alternatives for Challenge 2

Challenge 2 is about what social media strategy should be developed to push and pull Loreal
products. Loreal team definitely has come up with 3 options, as highlighted by yellow shade, to
answer Challenge 2. However, to have rigorous optimal decision, why not to create another
alternatives to challenge these options, for example:
a) Integrate website with social media such as login or subscription by simply using social
media (SM) account. This may enable any update in website is linked to users SM account
notification. Thus it will increase Loreal visibility.
b) Non-hair/beauty industry benchmarking will also help to create original and innovative
strategy.
c) Another gamification such as hair color and style matching application may increase
customer engagement and experience

Question 3
Decision & rationale
Customer
Friendly /
Acceptance

Future
Prospect

Cost Friendly
(Less Expensive)

Social Media Listening (SML)

Easy (High)

High

High

Big data analysis, salesforce.com

Medium

High

Medium

Benchmarking to competitor and

Non-industry benchmarking
insights from beauty and hair expert

Easy (High)

Medium

Medium

Easy (High)

Medium

Medium

High
Medium
Medium
Easy (High)
Medium
Medium
High
Medium

Medium
Medium
Low
Medium
Medium
Low
High
High

Medium
High
Low
Low
Low
Medium
Medium
High

Easy (High)
Medium
High

Low
Medium
High

Low
Low
High

Easy (High)
Low
High

High
Low
High

Low
Low
High

CHALLENGE 1:

Market
group)

research

(survey

and

100 euro
(internal)
2000 euro

focus

CHALLENGE 2:
How to videos in YouTube
Create pages in social media
Discount and price
Showrooming (Best Buy Best Practice)
Paid advertising
AdWords
SEO
Partnering (commission
influencers
Sales people

based)

Paid banner on websites

Integrate website with social media
Mobile apps
Offline event
Gamification (online competition)

with

500 euro

1000 euro

100 euro
(internal)

1300 euro

Prize commission for top reviewer and

promotor
Google Plus
Celebrity endorsement
Create a platform
Recruit hair advisors from customers
(best practice : Saphora)

High

High

Medium

Low
Medium
Medium

Low
Low
High

Medium
Low
Low

High

High

High

Strategy matrix above is created to make a decision on which project should go by analyzing the
feasibility of each alternative. The analysis is based on 3 parameters:
a) Customer friendly refers to easiness to implement this to customer. High score means easy
to implement.
b) Future prospect refers to potential value creation in future. High score means prospective.
c) Investment. High means low budget.
Finally, prioritized alternatives are shown with grey and orange shade. Allocated budget per
decision is also provided in the left column.

References
1. David Dubois, Ombre, Tye-Dye, Splat Hair: Trends or Fads INSEAD, case study 2014