L'Oréal: Global Brand, Local Knowledge

BY GROUP B3
 5Cs Framework
Company Customers Competition Collaborators Context
• Founded in • High-end, low • P&G • Department • Geo-Cosmetics
1909 to mid-price • Unilever stores, Duty- • Brand diversity
• Aimed to sell range, women • Avon free shops • Re-inventing
the “Science of as well as men • Professional Brands
• Revlon
beauty in a jar” salons
• Five core • Pharmacies
businesses- • Perfumeries,
hair color, hair Health &
care, skin care, Beauty outlets
color cosmetics • Elle Magazine
and fragrances
• Bloggers
• Web
personalities
Problem Statement
To double L'Oréal’s existing customer-base & increase sales from emerging markets from 30% to 50%
by 2020

Alternatives:
1. Increasing co-branding further to new markets
2. Investing more on digital marketing and e-commerce
Evaluation of Alternatives
Co-branding Digital Marketing
Pros 1. Shared consumer loyalty 1. Cost-Effective
2. Customized Products 2. Opportunity for target
3. Shared risk marketing
4. Brand/Product 3. User-engagement is high
awareness 4. Instant Publicity
5. Wide range of consumers 5. Instant Result
6. Measuring ROI is easier

Cons 1. Dilution of 1. Time Consuming

communication 2. Easily imitable
2. Impact on brand equity
3. Business ethics
Digital Marketing and E-Commerce

Reach - Search engines, social

networks, publishers and blogs

Act – Website, blog, community

Convert – E-commerce process,

price & promotion

Engage – Customer Advocacy

RACE Planning System for Digital Marketing

Recommendation
Digital Marketing and e-commerce

• User Generated Website

• Collaborating with Youtube bloggers who Vlog about Beauty Products
• Collaborating with Salons by providing instructional videos, training and advertising credits
Thank You