L’Oreal International Marketing Strategy
L’Oreal is the world’s biggest cosmetics and beauty
Products Company. Basically it’s a French based company and its headquartered
in Paris. It is focus engaged in the field of production and marketing of
concentrating on hair colours, skin care, perfumes and fragrances, make up and
styling products. L’Oreal products also based on dermatological and
pharmaceutical fields. Their products are made for Individual and professional
customers. This company operates over 130 countries like Asia, America, East
and West
Europe through 25 international brands.
The success of L’Oreal lies in
the fact that the company succeeded in reaching out to the customers of
different countries of the world, across different income ranges and cultural
patterns, giving them the appropriate product they are worthy of. The area of
expertise of L’Oreal being that it succeeded almost in every country that it
entered. The strategies of L’Oreal was varied enough to help it and stop itself
from restricting itself in a single country. L’Oreal sold its product on the
basis of customer demand and country want rather than keeping the product
identical across the globe. It built ample number of brands or mammoth brands
entrenched to the restricted culture and which appealed to a variety of segment
of the universal market instead of generalising the brand and edible in
innumerable culture. L’Oreal went on to being a local product in every
international market. The brand extension of L’Oreal also came in the same
sector or the same segment of market. L’Oreal believed in growing its expertise
in the segment it is conscious of rather than going into a completely new
sector of market.
International marketing strategy is more in-depth
and broadened in one sense of the term. It is simply a principle of marketing
however on a global scale. Setup of global marketing strategy has a lot to do
with understanding the nature of global market itself, and most importantly the
environment.
Business environment across the globe has different
economic, social and political influence. Thus, it is believed that selecting a
global market target for examples when strategizing is a good idea.
International marketing strategy of L’Oreal is concentrated on a cross cultural
arena spanning four
market destinations. They are
namely, 1.) Asian Market, 2.) European Market, 3.) North America Market and 4.)
The African, Orient and Pacific Region.
Asia
At present L’Oreal is one of the best company in
the whole world in the field of cosmetic products. The cosmetic products of the
L’Oreal are widely used and specially the hair colour which was introduced by
L’Oreal few years ago. L’Oreal is very famous in Asia and their products in
Asia are very cheaper than the other companies and are used by majority of
people in china, Thailand, Japan etc. L’Oreal is famous and very successful
because of their global marketing strategies which are very helpful and also
distinct from the strategies used by other companies in this field. L’Oreal in
Asia uses the sustainable strategy that is of growing the company as the
demands of cosmetic products in the countries like china, Thailand etc is in
great amount. This company uses the strategy of suspicious brand management and
they also brought the strategy of more suspicious acquisitions. The main
problem that a company like L’Oreal faces in Asia is of competition given by
the other companies dealing with the cosmetic products. To overcome this
problem in Asia these companies use the strategy of selling good quality
products at the cheaper rates than the other companies. One of the best
strategies of L’Oreal in Asia is of diversification of the brand and the main
reason behind this strategy by L’Oreal is to make them palatable in the local
cultures. L’Oreal in Asia aims at the management of the global brands with the
local variations and this means that their main aim is of becoming a local and
not the foreign company in Asia. For example L’Oreal in Thailand has given
local names to their stores and most of the employees present in this company,
are local people of Thailand. It is because of all these strategies; L’Oreal is
very successful in whole Asia.
European Market
L’Oreal is the only company which uses the
strategies which also supports the people in many ways and not only in
providing good quality products at cheaper rates. L’Oreal used different
strategies of marketing in the European market like they used the strategy of
nurturing self-esteem of the people with beauty. In France, L’Oreal created the
programs like “Beauty from the heart” for helping the people made helpless by
illness or any kind of negative life experiences. In the countries like UK and
Germany, many of the women and also the young people regain their confidence
and their self-image gradually by using the cosmetics which are provided by L’Oreal.
In European countries L’Oreal also used the
marketing strategies like taking calculated amount of risk etc. but most of the
strategies are related to the
growth of the people mentally
and not only for the beauty or the fashion purpose. Various innovative
treatment programs are launched by L’Oreal for the young people of European
countries and this company also launches the free skincare and make-up
workshops for the women suffering from cancer.
For example in France a programme named as “La Vie,
de Plus Belle” offers the free skincare and makeup for the cancer suffering
women in all over the France. This helps them to cope with the treatment’s side
effects and it also
helps them to retain their self-esteem which is
very important for a patient. In the European countries L’Oreal generally uses
the strategy of the management of brand by which L’Oreal had made a large
amount of brands which are rooted in the local culture and which all appeals to
the various segments of the global market. By using these social types of
strategies for the people of Europe has helped L’Oreal in expanding their
business in the whole Europe.
1. What is L Oreal's
international strategy?
2. What strategies make L Oreal an unbeatable
beauty company? 3. How does L Oreal promote their products?
4. Why the crowd go for L Oreal product?
5. What is the unique selling proposition of
loreal?
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