Marketing Management
Undertake the process of analysing one organisation in Cosmetic Industry and its operating environments from a marketing perspective. And then apply the learning from lecture 1-10 in the development of marketing strategy. You will provide an overview of this organisation, as well as detail the type of orientation towards marketing it takes. You are also required to examine and analyse the context and environments in which this organisation operates (its industry and the macro-environmental forces impacting on the industry).
The term management has been considered as the concept or the mechanism, which includes the process like managing, planning, organizing, directing and motivating the operations and the activities within the business corporation is known as management. The management of marketing activities is known as marketing management (Gktoday 2010). According to Marketing Guru Philip Kotler “marketing management is the process of analysis planning, implementation, monitoring and control of the operations and activities which are designed for bringing desired exchanges with the targeted segments of consumers for the attainment of personal and organizational goals.
The below executed analysis has been made focused on the marketing operations of L’Oreal which is a multinational corporation in the sector of cosmetics and is also top most leading brand name in the cosmetics industry (Loreal 2017). The business entity is headquartered in located in Clichy, Hauts-de-Seine, France and also have another registered office in Paris. The business corporation is well known brand name and the largest producer of cosmetics across the globe. The business entity has attained and developed a distinct identity in the global market by delivering adequate qualitative products to the potential consumers and which leads to huge pool of satisfied consumers. Highly satisfied audience has increased the goodwill to a high level. The business organization executes a detailed analysis over the consumer’s perceptions, demands, preferences, buying patterns and behaviors etc. for developing and designing the products so that they deliver a high level of satisfaction to the consumers (Baker, 2014). The business entity makes use of strategy for delivering a high level of satisfaction. The business entity has a diversified range of products under the distinct categories. The business corporation has also developed operations in the field of cosmetics, skin care, hair coloring, make-up, perfume etc. The vision statement of L’Oreal is demonstrating the motto as “Because I am worth it”. Considering this motto the organization is advancing for the accomplishment of the goals and targets. And the mission of the business corporation is to help men and women in realizing their aspirations and also in expressing their personalities to the full extent.
Profitably satisfying the needs of the consumers is the prime objective of L’Oreal and for which the business corporation must develop an understanding for its internal and external situations. These situations are very much liable in stimulating the business environment of the business corporation (Piercy, 2014). The analysis of the internal and external situations includes an analysis of the customers, the market environment, and the capabilities of the firm. Moreover, forecasting of trends should be done of the dynamic environment in which the business is operated. L’Oreal can make adoption of 5C’s strategy which is one of the most effective form of situation analysis. This form of analysis has been considered as an environmental scan which is executed on the 5 key aspects. These key areas are significant and are also applicable in assisting the marketing decisions. The below description is of the 5C analysis of L’Oreal:
- Company: L’Oreal has been ranked as one of the well-known brand name and the largest manufacturer of cosmetics on international grounds. The business corporation has a diversified range of products line which are sub-divided under the various distinct categories (Sheth and Sisodia, 2015). The prime categories under which the business corporation has developed operations are skin care, hair coloring, make-up, perfume etc. The vision statement of L’Oreal is demonstrating the motto as “Because I am worth it”. Considering this motto the organization is advancing for the accomplishment of the goals and targets. The prime goal of the firm is provision of qualitative range of products for aiding men and women in realizing their aspirations and also in expressing their personalities to the full extent.
- Collaborators: The business entity is a multinational corporation and makes use of contemporary means of distribution for making the products available to the consumers (Loreal 2017). Moreover, the business entity is developing strong relations with the distributors around the world. These relations are developed on the basis of trust, mutual interest and high standards (MacInnis, Park and Priester, 2014). L’Oreal campus for suppliers has dedication towards suppliers and shares digital platform between the entity and the suppliers which also shares the stakes of the firm. The business entity has been building a global flotilla of emblematic and complementary brands by the succession of targeted acquisitions (loreal-finance 2017).
- Customers: The mission of the business corporation is delivering a range of qualitative products which ensures a high level of satisfaction of consumers. The business entity has attained a distinct identity in the global market by delivering adequate qualitative products to the potential consumers and which leads to huge pool of satisfied consumers and which will bring an increase in the market share for the entity. As the firm is the leading brand name in the sector of cosmetics
- Competitors: Although L’Oreal has been experiencing and enjoying the leading position in the sector of cosmetics, the business corporation has been facing an intense competition from some or the other leading brands (Hollensen, 2015). The other leading brands are Revlon, Chamber, Lakme, Yardley, Garnier. These entities provide high level of competition to the firm. For tackling these barriers the business entity will have to develop and implement appropriate strategies and plans. For instance, L’Oreal should make use of positioning strategies for enhancing the brand awareness and should try to increase the market share by increasing the number of targeted consumer segments.
- Climate: This factor comprise of various segments which stimulates the operating activities of the business corporation (Haseeb 2017). Political factor consist of the norms and policies which is levied by the governing authorities of the business entity. For instance, the L’Oreal should consider the policies and rules of France governing authorities as the prime manufacturing units is located in Paris (Netmba 2017). Moreover, the import policies or the trade policies play a significant role in stimulating the business activities. Exchange rates and interest rates are the best examples of economic environment of the entity. These factors are very much liable in influencing the business elements such as price of the products. Social factor is another segment of this concept which includes the societies, the stakeholders etc. Now-a-days the societies are more inclined towards modern and fashion trends. And hence the products should be developed as per the requirements of the consumers (Keller and Kotler, 2016). Technological attributes play an empirical role in the firm and hence this factor is very much significant for the entity.
Analysis of L’Oreal
The business entity is required to develop and generate various sources of information for operating various activities and functions within the business corporation. Market research or marketing intelligence are the two examples through which the business entity can collect the required business data or information (Foxall, 2014). Market research can be conducted by making use of various methodologies and approaches such as market surveys, which includes surveys over customer’s perceptions, changing marketing trends, buying patterns etc. And market intelligence is the external data which is collected by the organization on a specific market segment and this is done if the business entity is wishing for entering a new market. This has been considered as the first analysis which can be executed by the business corporation before taking any kind of decisions. These forms of research can be considered as relevant by L’Oreal for collecting information regarding the various components.
One of the significant component on which the entity should collect the data is the demands and needs of the consumers. This data can include the consumers buying behavior and patterns, their income level and purchasing power etc. Personal or door to door surveys can be considered as one of the most efficient methodology for collecting the data (Dekker et al., 2013). This data will enable the entity in developing the products as per the requirements of the consumers and which will lead to the attainment of highly satisfied consumer.
The business entity has been facing an intense level of competition from the brands like Revlon, Chamber, Lakme, Yardley, Garnier. The business entity should make a detailed research or survey over the competitive strategies and plans. Execution of this type of research will enable the entity in generating the strength for tackling the completion. The competitors are the most empirical components which are held liable in stimulating the business environment of the organization.
The term business context is referred to the internal or the external factors which are liable in stimulating the business environment of the entity (Meffert, 2013). The business context of L’Oreal includes the political, economic, social and technological factors. These are the drivers which enable the entity in operating and executing the business in a smooth manner only if they are followed in a correct manner. There are number of changes observed in these variables. For instance, the political environment is likely to change every 5 year due to the changes in the political or government authorities (Peñaloza, Toulouse and Visconti, 2013). Technological advancements and innovations are most regular and occur with small gap of time.
Collaborators are the vendors, suppliers and the distributors. These drivers play a significant role in providing a smooth flow of required resources or materials for producing the goods. The distributors ate the mediums which enable the smooth flow of distribution of products or making the products available till the consumers.
- Choice of target market: Targeting is an approach which is initiated by the business corporation for establishing a brand image in the minds of the consumers. L’Oreal majorly targets the female consumers as the lead target. The targeting strategies and plans are developed on the basis of the requirements of this targeted segment. Targeting can be done through three ways which are full market coverage, undifferentiated or mass marketing and differentiated marketing (Pasquier and Villeneuve, 2017). These are the approaches which can be implemented by the business corporation for targeting the consumers. For instance the business entity is making use of differentiated positioning strategy for some of the products such as Garnier Men oil clear face wash, as it is segmented on the basis of gender.
- Value proposition for target market: The concept of value proposition can be considered as the business or a marketing statement which is utilized by the organization for summarizing why the consumer should buy the product. L’Oreal develops distinct value proposition for the targeted consumers by making use of different approaches and strategies. A value proposition should be effective and attractive so as it should be able in communicating the reasons why the products or the service served is best for the targeted consumer. This can be done by making use of various mediums such as online means. Social media and official websites can be a good option for making display of the messages for attracting the consumers. Different formats can be followed for presenting the value proposition. The value proposition can be considered as a tool which develops a distinct identity of the products in comparison of the competing brand.
- Positioning statement for the target market: A positioning statement has been considered as an expression of how a offered product fulfills the needs and requirements of a consumer in a better way as compared to its competing brand. Positioning statement should be unique with some distinct and attractive message (Iacobucci, 2014). This message should be effective enough in attracting the consumer’s attention. The positioning statement which can be used by L’Oreal “ For the angelic women who are the epitomes of beauty, L’Oreal is the brand that brings out the goddess in you”.
Marketing mix describes and develops the marketing strategies which are adopted by the business corporation for establishing the brand image in the targeted market. The below presented is the marketing mix of L’Oreal:
5C Analysis of L’Oreal
Products: The business entity has been offering a wide range of products under various categories. L’Oreal is producing products related to the all beauty and cosmetics. These products are majorly divided under four segments which are presented as below.
- L’Oreal Luxe: Kiehl’s, Lancôme, Yves Saint Laurent, Ralph Lauren, Giorgio Armani, Diesel, Clarisonic.
- Active Cosmetics division: Vichy, La Roche-Posay. Sanoflore
- Professional Products division : L’Oréal Professional Paris, Kerastase, Matrix
- The Body Shop
- Consumer Products division : L’Oréal Paris, Garnier, Maybelline New York, Shampoo
These are the major product divisions under which the business entity has the diversified range of products like eye-liner, mascara, eye shadow, nail polish, nail polish remover, lipstick, lip-liner, lip gloss, cleanser, foundation, concealer, blush for face, hair color in various shades, hair care, shampoos, conditioner, toners, hair spray and serum. These products are edeveloped and designed on the basis of requirements of the consumers.
Price: As L’Oreal has been ranked as one of the leading brand name in the sector and the business entity is making the availability of the consumer products by retail channels which further make the products available to the mass market. Major products of the firm are based on the cream consumer segments and hence are quoted to a premium range. The business entity makes use of premium pricing range for the products.
Place: The business entity is a multinational corporation and is operating the business on worldwide basis (Mbaskool 2017). The products divisions are made available to the consumers on international basis. The business entity has been acquiring many different entities for bringing a hike in the brand presence. The organization has grown over the years and is now operating business in more than 130 nations and in 5 continents. Generally the products are available departmental stores, retail outlets official brand boutiques etc.
Promotion: As the business corporation is an international brand the business entity is making use of contemporary mechanisms and strategies for operating the business activities and hence, contemporary means and mediums should be used in promoting and advertising the products. L’Oreal has been organizing number of promotional events for enhancing the market share and customer base of the products. Celebrities are paid for endorsing and promoting the cosmetics, sports events are also sponsored.
Conclusion
After summing up the above executed report it has been analyzed that development of marketing strategies is one of the crucial task for a business entity. The above executed analysis has been presented on L’Oreal which is one of the leading cosmetic brand. The main objective is to analyze the organization and its operating environments from the marketing perspective. The analysis will develop of an understanding regarding the marketing strategies and the 5C’s of the firm which play an empirical role in the business organization.
References
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Netmba, 2017, Situational analysis, Assessed on 26th December 2017, https://www.netmba.com/marketing/situation/.
Pasquier, M. and Villeneuve, J.P., 2017. Marketing management and communications in the public sector. Routledge.
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