The L’Oreal marketing mix has laid down the foundation for a strong core business model that will help to meet product demand, attract customers, boost brand presence and achieve the brand’s success in the personal care industry.
The comprehensive marketing mix strategy of the L’Oréal company focuses on the entire portfolio of consumer products, product strategy, retail outlets, different price ranges, brand ambassadors, digital advertisements, sales promotion and promotional mix to make sure that all the marketing objectives of the luxury products brand are taken care of in the huge market.
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Introduction of International Brand L’Oreal
- Origin Country: France
- Founder: Eugene Schueller
- Founded: 1909
- Headquarters: Clichy, France
- Employees in 2023: 87,974
- Annual Revenue in 2023: 38.199 billion USD
- Net Income in 2023: 5.439 billion USD
- Brand Value in 2023: 11.217 billion USD
- Market Cap in 2023: 180.41 billion EUR
- Company E-commerce Site: www.loreal.com
The international brand L’Oreal is the largest cosmetics company and one of the most popular personal care brands in the world. Although it started as a hair color company soon the company’s products included skin care, sun protection, hair color, make-up, hair care and perfumes.
Most of the L’Oreal luxury products are clinically proven and considered quite safe for use. The company is also active in several fields including tissue engineering, biopharmaceutical research, dermatology and toxicology.
The consumer division of the largest company boasts of high-quality products and huge worldwide sales. L’Oréal is a French company with ownership of 36+ brands, 500+ registered patents and thousands of L’Oréal products. L’Oréal Professionnel Paris is known for technical products like the first cold perm and the first harmless hair dye.
One of the most popular subsidiaries of the company was The Body Shop which was acquired in 2006 and sold to Natura & Co in 2017. Two brands Galderma and Body Shop were at one time directly attached to the company.
Target Market: L’Oreal Marketing Mix
L’Oréal is a favourite of women although the target audience of the largest company is both men and women. L’Oréal products enjoy a huge market share in the personal care industry and this is because the brand offers both professional products and consumer products for the masses.
L’Oréal targets professionals, young consumers and Generation Z who are looking for high-quality products. Its market segmentation is dependent on demographic factors. The target audience of the renowned brand is upper and middle-class and high-income individuals looking for an entire portfolio of clinically proven product offerings.
L’Oréal Marketing Strategy & Marketing Mix (4Ps)
L’Oreal is the largest consumer product company which has been able to hold on to its position because it owns 36 world-renowned brands and 500+ registered patents.
The L’Oréal marketing strategy makes sure that the L’Oréal product strategy, distribution strategy, retail channels, pricing strategy and promotion mix are at their best because they are vital elements in the company’s objective to attract customers in the professional and mass market.
Product Strategy: L’Oréal Marketing Mix
L’Oréal product strategy in L’Oréal’s marketing mix puts the focus on product innovation, the product line, product categories and the innumerable product offerings. L’Oreal is a brand that caters to the product demand of the customers successfully with help of various brands at its disposal.
L’Oréal makes affordable beauty products for the mass market and premium products for upper-class customers and professionals. L’Oréal’s marketing strategy ensures that all L’Oreal products are categorized on targeted markets with help of four divisions.
The major brands under this division are-
L’Oréal Luxe Division
The prominent beauty products brands under this division are-
- Ralph Lauren Fragrances
- Urban Decay
- Valentino Beauty
Professional Products Division
The prominent brands under the Professional Products are
- L’Oreal Technique
- Matrix Essentials
- Botanicals Fresh Care
Active Cosmetics Division
The prominent brands under Active Cosmetics are
- La Roche-Posay
Product Mix in the L’Oréal’s Marketing Strategy
The product mix in L’Oréal’s marketing strategy puts the onus on its product line for skin care, hair care, hair color, make-up and perfumes. L’Oréal Paris sells products for mass and luxury and L’Oréal Professionnel Paris for professional markets. The company is also active in tissue engineering, biopharmaceutical research, insurance, health and chemicals.
L’Oreal offerings include
For face and skin care the company offers serums, cleansers, face masks, scrubs, toners, essence and creams etc. It also sells products for various skin concerns like dark spots, dry skin, tanning, skin brightening and oil control etc.
- L’ORÉAL PARIS GLYCOLIC BRIGHT GLOWING NIGHT CREAM
- REVITALIFT HYALURONIC ACID FRESH MIX SERUM SHEET MASK
- L’ORÉAL PARIS GLYCOLIC BRIGHT SKIN BRIGHTENING SERUM
Hair products for hair care include shampoo, conditioner, serum, mask and night cream. It deals with concerns like oily roots, hair fall, damaged hair, split ends, breakage and dry hair etc.
- L’ORÉAL PARIS EXTRAORDINARY OIL SERUM
- L’OREAL PARIS 6 OIL NOURISH SHAMPOO
- HYALURON MOISTURE HYDRA FILLING NIGHT CREAM
Hair products for hair color include temporary, semi-permanent and permanent hair colors in red, brown and black shades.
- CASTING CRÈME GLOSS REGULAR EBONY BLACK
- MAGIC RETOUCH DARK BROWN
- INSTANT ROOT CONCEALER HAIR SPRAY
Make-up products are available for lips like lip liner and lip gloss, nails like nail polish, eyes and brows like eyeliner and kajal and face like foundation and primer etc.
- L’ORÉAL PARIS COLOR RICHE NAIL POLISH
- L’OREAL PARIS COLOR RICHE LIP GLOSS
- L’OREAL PARIS COLOR RICHE LIP LINER
With help of cutting-edge technology, the virtual try-on helps customers to preview 100 shades of hair colors and make-up with try-on tools
Place in the L’Oréal Marketing Strategy
The place and distribution strategy in L’Oréal’s marketing mix has helped to create 3 global centres, 21 research and development centres and 6 regional poles so that the company can focus on spreading its product and brand presence in the target market.
L’Oréal India was formed in the year 1994 to provide customers with qualitative, effective and safe products. It markets 15 brands and employs 1600 people across five locations with 2 research and innovation centres and two manufacturing facilities.
Place and Distribution Strategy in L’Oreal Marketing Mix
L’Oreal marketing mix strategy has helped the company to build a vast and widespread distribution channel that ensures all the products are transferred from the manufacturing plant via the Stock Keeping Units or SKUs and retail stores to the end customer.
The distribution channels in the L’Oréal marketing strategy include
Manufacturing Plant >> Stock Keeping Units >> Retail Stores >> End Customers
L’Oreal marketing mix and marketing strategies ensure that all the products are available all over the world through the following
The vast distribution network in the L’Oréal marketing mix and marketing strategies include selling the products through department stores, supermarkets, perfumeries, health retail outlets, beauty outlets, direct mail, pharmacies, cosmetics stores, hair salons, own salons and even e commerce websites.
L’Oréal e commerce Websites
L’Oreal realizes the importance of its online store and has ensured high customer visits so that it can sell products easily all over the world. Retail stores like cosmetics stores and department stores are popular no doubt but in these changing times even e commerce websites with high customer visits have helped the company to increase sales volumes and generate revenues.
Price: L’Oréal Marketing Strategy
The price in the L’Oreal marketing mix strategy is dependent upon its product preference and product demand. As the company sells thousands of products it has to maintain different price ranges for all the products. The brand ensures that the products are available in several sizes and price levels so that customers can buy as per their needs and pockets.
The consumer segment of the brand is one of the most successful as it helps to increase sales volume and generate high profits. The superior product with a premium price range is equally popular amongst the upper class and professionals and has also proved high earners for the company.
Pricing Strategy of L’Oréal Marketing Mix
The L’Oreal marketing mix and marketing strategies have considered various factors and after quite a deliberation has adopted the following pricing strategies
Premium Pricing Strategy
Some of the company’s products are premium products with premium price levels. The company has adopted premium prices as part of L’Oréal’s marketing strategy for luxurious products. The products that are meant for professionals also come with premium prices as the quality is much superior to the products that are available for mass consumers.
Value-Based Pricing Strategy
L’Oréal’s marketing strategy ensures that the company sells products for the mass market also. The products do not have premium prices instead the company has adopted a value-based pricing strategy where consumers can buy products at affordable rates.
Promotion Mix in the L’Oréal Marketing Strategy
L’Oréal has adopted an aggressive promotional strategy to promote its brand and products in the market. It realizes the importance of a strong marketing policy and thus uses digital advertisements, ad campaigns, logos, slogans, brand ambassadors, social media marketing and traditional media to its advantage.
The promotional mix in the L’Oréal marketing strategy includes
L’Oréal marketing strategy uses traditional media like newspaper magazines, billboards, hoardings and television for showing the advertising campaign.
People look at the brand ambassador of a company to decide whether they should buy the product or not. Brand ambassadors and celebrities associated with L’Oréal company are Gigi Hadid, Bella Hadid, Jane Fonda, Kate Winslet, Naomi Watts, Jennifer Lopez, Aishwarya Rai, Eva Longeria, Anushka Sharma and Amber Heard.
As part of its sales promotion’s strategy, the company offers discounts, free samples and coupons to promote its products in the market
Social Media Marketing
L’Oreal has deployed social media to strengthen its position in the market. It uses 120+ tools and several influencers to manage social media networks.
L’Oreal India makes sure that animals are not harmed during the testing period of the products. The company has ensured sustainability efforts via sustainable packaging and selecting the best materials that will preserve planet resources. The franchise Majirel uses a 100% recycled plastic cap.
Digital Marketing Strategy – Memorable Digital Marketing Campaigns
Because We Are Worth It
“Because We Are Worth It” is the advertising campaign that has helped the brand to remain in the limelight. This iconic tagline is now 50 years old but is still as effective as before as it manages to advocate women’s empowerment
In 2020 the brand launched an advertising campaign called “Stand Up Against Street Harassment” in India in partnership with NGO Breakthrough to make people aware of how women were facing the issue of harassment in public.
Key Takeaways in L’Oreal Marketing Mix
The key takeaways from the L’Oreal marketing mix are-
- The brand’s focus on quality and innovation is justified
- The premium price of the products is not an issue because of increased brand visibility in the market
- Maintain an aggressive promotional strategy to remain in the limelight
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