L’Oréal International Marketing Strategy; L’Oréal is the world’s biggest cosmetics and beauty products company. Basically, it’s a French-based company and is headquartered in Paris. Poster presentation on L’oreal Luxury Cosmetic; It focuses on engaged in the field of Production and Marketing of concentrating on hair colors, skincare, perfumes, and fragrances, makeup, and styling products. L’Oréal products are also based on dermatological and pharmaceutical fields. Their products are made for Individual and professional customers. So, what discusses is: L’Oréal International Marketing Strategy explains their Case Study.

The Concept of L’Oréal explains their Case Study by International Marketing Strategy.

This company operates in over 130 countries like Asia, America, East, and West Europe through 25 international brands. The success of L’Oréal 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’Oréal being that it succeeded almost in every country that it entered. The strategies of L’Oréal was varied enough to help it and stop itself from restricting itself to a single country.

L’Oréal sold its product based on customer demand and country want rather than keeping the product identical across the globe. It built an 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 generalizing the brand and edible in innumerable culture. L’Oréal went on to be a local product in every international market. The brand extension of L’Oréal also came in the same sector or the same segment of the market.

L’Oréal believed in growing its expertise in the segment it is conscious of rather than going into a completely new sector of the market.

The 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. The setup of the global marketing strategy has a lot to do with understanding the nature of the global market itself; and, most importantly the environment. The business environment across the globe has different economic, social, and political influences. Thus, it is believing that selecting a global market target for examples when strategizing is a good idea. The international marketing strategy of L’Oréal is concentrating on a cross-cultural arena spanning four market destinations.

They are namely:

  • 1) the Asian Market.
  • 2) European Market.
  • 3) North America Market, and.
  • 4) The African, Orient, and Pacific Region.

L’Oréal in Asia Market:

At present L’Oréal is one of the best companies in the whole world in the field of cosmetic products. The cosmetic products of L’Oréal are widely used; and, especially the hair color which was introduced by L’Oréal a few years ago. L’Oréal is very famous in Asia and its products in Asia are very cheaper; than the other companies and are used by the majority of people in China, Thailand, Japan, etc. It is famous and very successful because of its global marketing strategies; which are very helpful and also distinct from the strategies used by other companies in this field.

L’Oréal in Asia,

Uses the sustainable strategy that is of growing the company as the demands of cosmetic products in countries like China, Thailand, etc are 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’Oréal faces in Asia is the competition given by the other companies dealing with cosmetic products. To overcome this problem in Asia these companies use the strategy of selling good quality products at cheaper rates than the other companies.

One of the best strategies of L’Oréal in Asia is the diversification of the brand; and, the main reason behind this strategy by L’Oréal is to make them palatable in the local cultures. L’Oréal in Asia aims at the management of the global brands with local variations; and, this means that their main aim is of becoming a local and not a foreign company in Asia.

For example, L’Oréal 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’Oréal is very successful in the whole of Asia.

L’Oréal in European Market:

L’Oréal’s the only company that uses the strategies which also supports the people in many ways; and, not only in providing good quality products at cheaper rates. L’Oréal used different strategies of marketing in the European market like they used the strategy of nurturing the self-esteem of the people with beauty.

In France,

L’Oréal created programs like “Beauty from the heart” for helping the people made helpless by illness or any kind of negative life experiences. In countries like the UK and Germany, many of the women and also the young people regain their confidence; and, their self-image gradually by using the cosmetics provided by L’Oréal.

In European countries,

L’Oréal also used marketing strategies like taking the calculated amount of risk etc.; but, most of the strategies are related to the growth of the people mentally and not only for beauty or fashion purposes. L’Oréal launches various innovative treatment programs for the young people of European countries; and, this company also launches free skincare and make-up workshops for women who have cancer.

For example,

In France, a program named “La Vie, de Plus Belle” offers free skincare and makeup for cancer suffering women all over 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’Oréal generally uses the strategy of the management of brand by which L’Oréal had made a large number of brands that 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’Oréal in expanding their business in the whole of Europe.

L’Oréal in North American Market:

North American markets are considering as a perfect place for companies like L’Oréal, Olay, ponds, etc. The best business of L’Oréal comes from the market of the US. The reason for this much success is that L’Oréal uses very good global marketing strategies in North America and other countries like Canada etc. One of the successful strategies of L’Oréal in the US market is brand extensions; which include the extensions of the brands after doing complete research.

For example 01,

When L’Oréal launched a shampoo for kids they first made complete research; and, also debated about the new launch or for an extension. In the US and Canada L’Oréal uses the strategy of frequent advertisements and promotions. As we know in the present scenario, proper advertisements and promotions are very important for any company because people follow the promotions; and, due to which the demands of the products like hair color increases at a very rapid rate. We can clearly understand the advertisement and the promotions of L’Oréal through their media budget. L’Oréal has the twelfth largest media budget in the world which is much more than the other companies in this field.

For example 02,

In the late 1990s, the expenditure of L’Oréal advertising and promotion was jumped from 37% to around 47% of the total amount of sales. The global ad spending of L’Oréal was increased to $1.25 billion which was on par with the company named coca-cola. The best thing about this company is that they have a separate and very distinct policy of promotion in the market of the US. Matrix is the number one brand of L’Oréal in the US and the main reason behind the success of the matrix is frequent; and, distinct advertisement and promotion of cosmetic and hair products.

The people of countries like Canada like to use new products that mean they like changes in their product after some interval of time. So by keeping this thing in mind, L’Oréal uses the strategies of modifications which means they modify their existing products according to the latest tastes and fashion of the local people. According to the latest surveys of the people of L’Oréal company; the majority of the profits of this company is because of the US and these perfect strategies used by this company in the US is the reason behind this type of success especially in the North American market (Helping vulnerable people).

L’Oréal in Africa, Orient and Pacific Region:

Like other countries in the world, L’Oréal is also very successful and equally famous in Africa and the Pacific region. L’Oréal entered into the market of India in the year 1997 and at that; there was not much awareness about the sniff of structure in the industry of hairdressing.

In countries like the UAE and Australia, proper and organized education was totally absent; and, perfect and well-trained hairdressers were also not present at that time. Despite all these problems, L’Oréal in India made some of the strategies; and, one of the best strategies of L’Oréal that they launch various technical training centers; and, they even opened a club of only the hairdressers.

In the UAE,

L’Oréal products which were professional began selling through Parisienne salons; while the other companies have begun retailing their range of hair color to power growth. L’Oréal uses a global marketing strategy for launching its successful brands all around the world.

For example in February of this year only, L’Oréal announced the arrival of the matrix which is the number one brand of L’Oréal in the US to India, UAE, etc with a reason for adding the range of hair products to their existing products at affordable prices. The main thing about this company is that they make strategies according to the local culture of different countries and not uses the same strategies in every country. Because of all these strategies, L’Oréal gains a huge profit from Europe every year.

The success of L’Oréal:

The success story can continue further because even today products of L’Oréal touch the cultural values instilled in the potential customer’s mind. L’Oréal just doesn’t sell the product it makes the customer buy the idea of dreaming big but remaining rooted to the core cultural values. it has carefully devised its global marketing strategy and customized it to the local needs; and, that’s the reason people from Africa to Europe and America to Australia are using the L’Oréal products.

The same reward schemes, motivational methods, desired working environments, etc; also cannot be the same for different employees working for the company in different nations; and, thus it also needs the understanding of different aspects of the impacts of the cultural differences. Proper analysis of the Macro and the Micro Environmental factors should do to study how much technological and economical; and, politically that country is sound to carry out a trade with them.

Whether it’s an Asian Market, European market, North American Market, or the Pacific Region, everywhere the culture differs in terms of varied factors. So it becomes the responsibility of the Company to do proper scanning of these factors to have their long stay in the region so that they can attain a Topmost Competitive position by adapting to various region’s cultural factors in their Global Marketing Strategies.

Therefore the major things that should keep in mind for L’Oréal while doing International business are to form an effective global strategy team for defining the trading policies to work in any country. The strategy of Globalization should encompass major factors like cultural differences, economic policies of the country, etc. moreover the varying lifestyles of the peoples and the rapidly changing economies even should also be kept in mind.

L'Oréal International Marketing Strategy explains their Case Study
L’Oréal International Marketing Strategy explains their Case Study!
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