Established in 1909, an alluring maquillage has set its business in France. Now it is known for over 500 brands and thousands of products which is called the L’Oréal company. The corporation is known for its high-quality cosmetic products. 

The cosmetic company is well-known for its hair products to make up stuff. Its idiosyncratic marketing strategies and campaigns made the brand attain a successful business. 

Read this case study on the marketing strategy of L’Oréal to know more about the marketing strategy of the company including its Marketing Strategy, SWOT Analysis, and brief Marketing mix of L’Oréal. 

So, now let’s start the case study with a short introduction for L’Oréal.

About L’Oréal

L’Oréal was founded in the year 1909 by  Eugene Schueller in Clichy, France which is the largest company dealing in personal care, currently markets over 500 brands and thousands of products in the beauty business. 

It is also known as the world’s largest cosmetics company of hair color, permanents, body and skincare, fragrance, and many more.  The name “L’Oréal” is creating a strong image of the brand’s signature phrase, “Because I’m Worth It.”

It started with only the hair color business, after that the company branched out into other cleansing and beauty products and has a huge variety of products that are clinically proven and safe to use.  

Furthermore, the brand is also active in different fields such as toxicology, dermatology, biopharmaceutical research, and tissue engineering. L’Oréal as the biggest brand of beauty has a unique commitment to technological advancements, innovation, and high-quality products for people of all ages.

Current News about Loreal

• L’Oréal Paris names Anushka Sharma as brand ambassador in India.
•  Coca-Cola’s Aditi Anand joins L’Oréal Professional as Head of Marketing   
• L’Oréal launches brand Redken in India; aims to open premium salons across metros   
• L’Oréal featured a man in its mass-market cosmetics campaign:   
• L’Oreal changed its slogan for the first time since 1971
  Old -“Because You’re Worth It” – and changed it to say: “Because We’re All Worth It.”
• L’Oreal recently acquired the Aēsop cosmetics brand for $2.5 billion.

Buyer Persona

Marketing Strategy of L’Oréal

The marketing strategy of L’Oréal refers to a concept of a business’s core model, which is traditionally focused on the product, place, pricing, and promotion. It is described as a collection of marketing techniques that a company uses to achieve its marketing objectives in a target market.

1. Product Strategy of L’Oréal

L’Oréal is equipped with a wide portfolio of top brands under them. The product mix of the company can be analyzed by putting light on its complete portfolio. The products produced by the brand are widely related to the beauty and cosmetics under 4 major brands such as:

• Vichy, Inneov, and Sonaflore are under Active Cosmetics.
• Diesel, Ralph Lauren, and YSL are Luxury Products.
• Technique, Matrix Essentials, Mizani, and Kerastase are categorized under Professional Brands.
• Brands such as Ombrelle, Maybelline, Essie, Garnier, Magic, and Colorama are Consumer Products.
• The Body Shop covers several products that L’oréal offers such as serum, toners, hair spray, conditioners, shampoo, hair care, hair colours, mascara, eye shadows, eyeliners, cleansers, foundation, concealer, blush for face, lipstick,lip-liner, and lip gloss.

All these products are developed based on customer’s demands and preferences. The company products are available in various sizes and price ranges which people can choose according to their needs.

The cosmetic brand has maintained proper testing of products and also ensures that no animal is harmed during the testing of products. It is planning to have a product line in herbal and ayurvedic products. So, let’s now look into the place and distribution strategy of  L’Oréal.

2. Place & Distribution Strategy of  L’Oréal

Based upon different product divisions, all of the company’s products are available all over the globe. The distribution channel helps it to make a strong presence using its vast networks. Over the period,  L’Oréal has acquired many companies to increase its brand presence. It has grown and made a presence in 5 continents and 130 countries.

The products are available at cosmetics stores, department stores, own-brand boutiques, salons, retail outlets, pharmacies, and even e-commerce websites. The company has tie-ups with various e-commerce websites and also its website.

It has set up a manufacturing unit in Pune in Maharashtra. Most of the products are imported from outside India, whereas the rest of them are manufactured in this plant. 

The brand’s success in India is credited to its efficient distribution policies and supply channels. Now that we understand the tactics followed by  L’Oréal for distributing its products. Let’s now peek into the pricing strategy of  L’Oréal. 

3. Pricing Strategy of  L’Oréal

Out of the 4 product divisions, L’oréal gets the most revenue from the consumer division, but the premium price products are also in demand as consumers who can afford premium products are ready to spend premium prices as well.

L’oréal has to maintain a premium price policy for its high-quality product group. It has decided to have a value-adding pricing policy for all of its products. The brand also targets the middle-class section in society by offering prices at a reasonable price so that they can afford them. 

The company never fails to bring innovation across all its products and penetrate the market based on various product divisions at various price levels. Product demand, location served, competition, and premium price are all factors in the pricing strategy.

With this, the pricing strategy comes to an end. Let’s into the promotional strategy of  L’Oréal in detail. 

4. Promotional Strategy of  L’Oréal

As an international brand, L’oréal has done its promotions at all possible levels in various countries. The strong logo “because we are worth it” attracts customers and gives a strong message to them.

The company follows aggressive promotion strategies. The brand roped Jennifer Lopez, Cheryl, Naomi Watts, etc. as its brand ambassador at the international level. Aishwarya Rai, Sonam Kapoor, and Katrina Kaif are India’s brand ambassadors for the large proportion of television, print, and digital advertisements.

The cosmetic company went viral in India due to its word-of-mouth strategy. Free samples are given out beside other cosmetics or at salons to promote new products. Discounts are sometimes offered on certain products to boost sales and advertise them. In many cases, customer satisfaction surveys are conducted among those who have used these goods. The results are then made public as part of the advertising campaign.

Campaigns Run By Loreal in Past Years

• “Because I’m Worth It” (1967): This iconic slogan has been a cornerstone of L’Oréal’s branding and advertising. It emphasizes self-worth and empowerment, connecting with consumers on a personal level.
• “True Match” Campaign (Jan, 2017): L’Oréal launched a campaign for their True Match foundation line, promoting diversity and inclusivity in beauty by featuring a diverse range of models representing various skin tones.
• “Your Skin, Your Story” Campaign (2019): This campaign aimed to celebrate the unique stories behind each individual’s skin. It focused on diversity and self-expression, highlighting different skin types and backgrounds.
• “Age Perfect” Campaign (2020): L’Oréal’s Age Perfect campaign aimed to challenge age-related beauty standards and promote self-confidence among older women. The campaign featured Helen Mirren and Viola Davis, among others.
• “Stand Up Against Street Harassment” Campaign (2021): L’Oréal partnered with Hollaback!, an organization combating street harassment, to raise awareness about this issue and encourage people to take a stand against it.

How does Loreal use Digital Marketing in its strategy?

Loreal uses many techniques to connect with its customers & promote its products via traditional advertising, digital marketing, and influencer marketing. 

Loreal Digital Marketing campaigns run on Instagram, YouTube, Facebook, Twitter, Snapchat, etc. The best way in this century to promote products is to connect with influencers and celebrities and increase brand awareness. Anushka Sharma joins as a Brand ambassador for Loreal India this year.

Top 5 Competitors of Loreal

• Lakme is an International Beauty brand built around Indian women. Its headquarters is in Mumbai, Maharashtra, India. It was Launched in 1952, Lakmé is the first successful cosmetics brand in India. Lakme is named after the French opera Lakme, which itself is the French word for goddess. 
• Unilever is a multinational FMCG company. Unilever was founded in 1929 & is currently headquartered in London UK. It has it’s various branded products like Dove, Axe, etc.

•  Avon deals in various perfumes, personal care, cosmetics, and skincare. It is a multinational company, based in London. Avon is a good competitor to Loreal & Lakme. It has its store in across 100 countries of the world. It has touched a revenue of $9 billion this financial year. It has good hands in direct selling.

• Coty is headquartered in New York, US with a valuation of $10.3 billion and was founded by François Coty in Paris in 1904. Coty is a beauty company with a portfolio of brands across hair color & styling, fragrance, skin & body care, and color cosmetics.

• Chanel was founded by Coco Chanel and Pierre Wertheimer in 1914 in Paris. It is headquartered in London UK. CHANEL has a huge variety of products in different domains like fashion products, fragrances, make-up products, skin care products, jewelry, and watches.

Conclusion

With all 4Ps strategies, our marketing mix strategy comes to an end. L’Oréal is an extremely successful company that has outperformed its product offerings in terms of both quality and variety. 

The pricing varies from premium to moderate and caters to the need of their audience and industry perfectly. Its geographical reach is outstanding, thanks to its years of experience in hand. With continuous promotions and amazing branding, the company is sure to enjoy its stable position in the market.

Thank you all for reading this case study. I hope that this case study was added with values and you might have learned something new about L’Oreal’s marketing mix. If you liked this, please share, leave a comment, and do explore our other such blogs! 

Also, if you want to upgrade your digital marketing skills, try IIDE’s free masterclass on Digital Marketing Basics by Karan Shah, Founder, and CEO of IIDE.