LOreal Company Analysis
LOreal: Global Brand, Local Knowledge
LOreal used high-level strategies in order to ensure the expansion of market in globally. First, the company concentrated on local consumers by establishing geocosmetics. It concentrated much on providing quality products as well as services to the local customers by moving on global level and bringing innovation locally (Henderson & Johnson, 2012). Secondly, LOreal used the strategy of brand diversity to ensure that all consumers get access to the product from different channels. It imposed a brand policy which authorized the sales of products only on designated channels. Writers who offer marketing management assignment help at Edudorm essay writing service notes that third, LOreal used the strategy of marketing by expanding its products such as Redken and Kiehl’s in global level. In 1996, LOreal introduced a new product known as as Maybelline in the market and the product was a targeted to young consumer (Henderson & Johnson, 2012). It applied technology as well expertise in marketing the brands and it enjoyed the results since the product increased the market share in U.S.
Marketing Strategy at LOreal Company
LOreal conducted a comprehensive research on beauty fashion, culture and heritage, and established a research institution in Chicago and China. The aim was to gain an insight for Chinese structure and behavior and more important to gain knowledge which could help the regional teams in product production for local people. Local researchers gained a useful knowledge and designed hair products for Chinese consumers. LOreal wanted to increase the GDP in order to integrate in the world. In brand diversity strategy, the company produced a brand called Garnier which was distributed in emerging markets such as Pakistan and India where it opened a retail infrastructure (Henderson & Johnson, 2012). Experts who offer strategic management assignment help at Edudorm essay writing service indicates that the company also produced premium brands such as masstige brand and Lancome with affordable price. The brands circulated all over the world and increased the total sales. In marketing operation, LOreal started brand advertisement and opened headquarters for Maybelline product in New York. In advertising method, the company defined the Maybelline product as the ‘urban flair’ and the purchasing power of buyers increased in a high rate (Henderson & Johnson, 2012).
Market Expansion Matrix at LOreal
In Market Expansion matrix, LOreal employed some important strategies to ensure that the business operated smoothly in global level. First, the company used diversification strategy as it entered in the market with a new product. In this scenario, there was a different kind of a demand and this forced LOreal to introduce new products in order to meet the demand of all consumers (Henderson & Johnson, 2012). Secondly, the company employed a strategic method of market penetration. Authors who offer MBA assignment help at Edudorm essay writing service points that with this strategy, LOreal established new products with affordable prices and sold them in the existing markets through advertisement. For example, the company produced many products and it increased its sales as well as market share (Henderson & Johnson, 2012). Last, LOreal used the market development strategy by giving customers access to new product and developed Masstige products. LOreal focused on criteria like sex and social class and for example it produced Genifique which was based on young people.
Consumer Targeted Messages at LOreal
There are various ways in LOreal accomplished its slogan which is known as “think global but act local”(Henderson & Johnson, 2012). Its vision was to cater for all consumers in global level in terms of aging population, ethnic groups and in emerging market. Therefore, LOreal used various methods to ensure that all consumers access the product and ensure they have successfully changed the world as they say that “We are in transition” (Henderson & Johnson, 2012). LOreal formed association with celebrities who promoted the production in global level to all genders and ethnicity. For example, Sarah Jessica was selected to promote the Garnier Nutrisse to young adults. Tutors who offer operations management assignment help at Edudorm essay writing service acknowledges that in 2009, Kate Moss was selected to promote Laurent Beauty fragrance and through various spokes models, 23 million products were being sold in annual basis. In addition, the company sponsored the Cannes Film Festival where it displayed actors with makeup. Moreover, the company was a major sponsor of festivals’ dinner where it launched makeup. LOreal also ensured there were business operations in global level through working together with film producers. In addition, its reputation was all over the world as it was a print media advertiser where it implemented digital advertising through print, billboards among other methods as it noticed that “beauty is all about imagery (Henderson & Johnson, 2012)”.
Further Recommendations
If I were the Senior VP of Marketing, I would use the following moving forward initiatives in order to reach “the next billion customers(Henderson & Johnson, 2012)”. First, I would create strong relationship with economic development agencies. This will act as a source of information based on essentials required in expanding business globally. In addition, it is a strategic way of creating a market entry and learning more about entry rules, target market and taxes. Second, I would ensure that before entering in global level, local customers are provided with quality services and they can access the product at any time and in any place locally (Henderson & Johnson, 2012). I understand that in order to success globally, I must first succeed locally by ensuring that there is a quality customer care so that I can retain them. Mentors who offer corporate strategy assignment help at Edudorm essay writing service recognizes that the last initiative and it is very important is distributing channels. As a senior manager, I would ensure that LOreal is bale to fill orders and they can reach on the destination on time. Thus, I would ensure that there are effective supply- chains which are reliable (Henderson & Johnson, 2012).
References
Henderson M. R & Johnson Ryan (2012). L’Oreal: Global Brand, Local Knowledge
