Global Marketing & Digital Business
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The advancement of technology and scientific approach has lead to the development in the marketing techniques in this modern era. The concept of marketing has also changed from the old traditional concept of marketing to the present novice one. The invention of modern gadgets and media has made communication much easier. Therefore if one needs to create awareness among the people about his product, it takes only a fraction of seconds. Digital marketing which is almost directly related to global marketing amplifies the benefits to a larger extent. Digital marketing depicts in making people aware of any product where the consumers get to know and view the product at the same time. The popular brands invest a large amount of money in digital marketing process through television and internet. In this project, the chosen brand is laurel and light is shed upon to understand the strategies utilised by this company. It is also done to undertake the impact of digital marketing and what competitive advantage it gains over other similar brands due to undertaking of this particular approach.
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In order to make a particular product a reputed brand, an elaborated market research has to be undertaken. The market research includes collection of data regarding market value, demand, price of the product which further enhances the consumer demand for that particular product. Based upon the data collected among other similar products and brands the company needs to design the product and set price accordingly. To submit a report with proper data analysis the market researchers may take various kinds of approaches such as quantitative and qualitative analysis. Some of the market researchers of Laurel have also undertaken several surveys in order to obtain the exact details from other similar company. Based upon the data gathered by the company, the market researchers have implemented various kind of marketing theories to extrapolate the statistical representation of it. For example the marketing theories implemented by laurel are SWOT analysis and PESTEL analysis (Ananda, Hernández-García & Lamberti 2014). The result of these marketing theories has helped L’Oreal to establish itself as a brand. The identification of weakness has helped to recognise the key factors that might help them in overcoming the weakness and gain competitive advantage over other brand. The data analysts of Laurel undertake qualitative analysis and quantitative analysis. However, mostly they have focused upon the quantitative analysis. In qualitative analysis they went through a survey where they have interviewed the managers of other five most reputed beauty brand. Among the five interviewed, three of the managers have laid emphasis on digital marketing. Therefore it can be seen that in modern times most of the business professionals like to invest a certain share of their money in digital business. It is done so as according to them this would be the most certain and reliable investments made which would possibly generate feedback. On quantitative analysis they have undertaken a survey among the customers of those brands where questions were forwarded to them and they were suppose to select the most suitable answer. This particular approach especially helped them to understand their customers and their demand as well as their feedback. On comparing all the results together, L’Oreal has developed certain services of itself which has made it one of the most reputed beauty brand.
Strength- one of the best beauty brand: L’Oreal invests a large money in branding. It makes renowned celebrity as their brand ambassador. This draws customers to a large extent. This creates an impression on consumer mind that as they are represented by celebrities they must be good products (Antoniadis & Charmantzi, 2016).
Innovative R&D: the research and development wing of the company comes up with innovative skills such as use of least synthetic ingredients, sun protection formula and so on. The professionals hire are sound professionals and the best of scientists.
Weakness- the products are not organic in nature. Now a day’s people are much more skin and hair conscious. Although the L'oreal invests much more on R&D but maximum consumers are inclined to organic skin care products.
Opportunity- as L’Oreal is a reputed brand, people still have craze for the product and they are demanding for organic products from the same company. This expectation of their consumers is a big opportunity for L’Oreal.
Threats- products are very expensive: due to the availability of reasonable price organic products, consumers are less likely to purchase chemical products with a high price.
There are several key cultural factors which lay impact upon global marketing. For example L’Oreal is a worldwide accepted branding which get a good response from customers worldwide. Therefore while designing the product various aspects of different culture are being considered. The main agenda of L’Oreal is to serve its customers with best cosmetics. Therefore thinking about different parts of the world and customers L’Oreal has a wide range of products. For example the specific shampoo it has come up with contains ingredients which suits hair texture of people across the whole world. The makeup product it manufactures also has wide range of colour combination so that it matches skin tone of people with different culture. L’Oreal has left no scope to disappoint any of their culture oriented customers and the fashion frenzy community. For example the shades of lipstick have a large number of colour options so that people can select product according to their culture and their preferences. Paying respect to every culture and their lifestyle L’Oreal professionals have also conducted different survey and market research. They invest more money and hire expensive R&D professionals so that they can deploy their brain in manufacturing optimum cosmetic and beauty product depending upon the weather and climate of any particular area or region. People are changing their lifestyles due to the modernisation and globalisation. The changing life styles also bring a significant change in their culture and beliefs (Bang & Hell, 2015). Therefore the company updates itself with the changing lifestyle and culture of all the people and delivers quality service with latest products according to consumer demand. The professionals of the company are continuously are in touch with their valuable clients so that they can properly analyse the client's requirements to the exact point. The most effective approach that the company has undertaken is that they have served a large number of customers worldwide and have collected their feedback individually. May be the customer have some specific requirement from a particular product or they have any issue to rise against any particular product. All these responses are minutely recorded by the company before taking any action (Bang & Hell, 2015).
The four Ps of marketing mix in case of L’Oreal are
Product: as discussed above the there are many other similar brands prove threat to this particular brand because of its chemical ingredients and high price. However this product is utilised opulently in many of the salon professionals for instant effect and professional purpose. But it is worthy to mention that there are other higher price products which are organic in nature that is most likely to draw customers. Those other similar products give a competition to l'oreal as because fast moving consumer market is very demanding and continually face rise and fall according to market value.
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Place: L’Oreal is a well known reputed brand whose products are famed and demanded by whole world. More than 200 countries it has spread its business. Almost all pharmaceutical shops and grocery outlets keep their products. The most purchasing products are shampoo, conditioner, spa, lipstick and so on. Recently the company has launched kid’s products like shampoo and soap which has popularity within a couple of days. Therefore it can be said that purchasing L’Oreal product is not much difficulty for anybody.
Price: now the main impact of digital marketing lies upon its price of the products. The price of the L’Oreal products is generally high. There are many offers and off season discounts rendered for buying more than one products. All these offers are displayed on social sites and online buying portal. Certain customers prefer to purchase these higher priced products on particular occasions especially in off season deals and discounts. The company makes a good revenue through these strategies. However consumers of this brand expect the price to go a bit low for daily products such as shampoo.
Promotion: as already said L’Oreal is a well known reputed brand therefore there is no need of undertaking any special promotional strategies. However calling off season discounts can be considered as a promotional strategy. And in some cases on any new product launch small free samples are distributed can salons to obtain a large order.
The major factors played role in standardization of L’Oreal product are management, competition, environmental and consumer needs. More or less each of these parameters are discussed in the above sections. Standardization of L’Oreal marketing mix is advantageous among other similar companies. The main objective behind standardization is to increase sales, decrease in production cost, more profit and so on. There is another alternative which overcome the difficulties. It is called adapted marketing mix. In order to penetrate the market and become established, it is very important to get adapt to the market. This is applicable for both large and small firms as customers desire their home product of their requirement to be present in the market.
The global markets have adjusted themselves to the latest technologies and approaches therefore they have already shifted their concepts from the old traditional marketing to digital marketing. The company make advertising of their products on social media, online markets as well as newspaper. One interesting feature of L’Oreal is that they make the advert in such way that demonstration of the product usage automatically occurs with audio and visual presentation. Moreover they hire celebrity brand ambassador whose presence and representation serves cent percent objective of advert. On the other hand it can be seen that the consumers are made to feel more important when they are sent email alert or message alert about ant product launch and their presence is invited. The most common digital marketing tools used by the company are as follows (Fichman, Nambisan & Halpern, 2014)
Social media: in recent days most of the people are connected to social media. Therefore this is a big opportunity for the company to invite people there to their official page where every product details are mentioned. Similarly this also helps in their advertising indirectly. For example if they like any particular new product, then they can even share the product with their friends and recommend them to buy the product. This can help in their marketing.
Television: the most lucrative attractive way is demonstrated via television. The popular celebrities advertise the product as they have used them personally and this creates a lasting impression on people mind. Hence they themselves want to use it personally.
Email alert: the company maintains good bonding with some of their fixed customers therefore the say send email and sums alert. In email they attach the colourful multimedia presentation which makes the customers want the product (Greer, Lusch & Hitt, 2017).
Blog: the company maintains its own official website where the users are asked to give their reviews. Many users have written blog on the new product launched and their personal opinion about them. Based upon the performance the product is rated with multiple numbers of stars.
Video tube: certain demonstrations of the products are demonstrated over video tube and the particular video is being uploaded for everyone to observe. People view the video and share in social media promoting the brand (Tiago & Veríssimo, 2014).
The concept of digital marketing is a very new approach in the field of globalisation. New information sources are available for clients of L’Oreal. Hence the purchasing behaviour of the clients is easily identified. Internet is considered as vector in buying process. According to some scholars, inbound marketing can be indirectly related to digital marketing as the old traditional marketing is quite undesirable for the web technology users. There are many limitations in traditional marketing and most of which are non functional. The conservation rate is very high although the traditional process of marketing still the effective outcome is very promising. In old traditional process no people would have become alert about any new product launch. People really didn't want to shift from their daily use product or they didn't have any urge to use any new product. But with the development of digital advertising a lasting impression is being created on people's mind and people are much more alert of selecting the best product among similar product (Järvinen & Karjaluoto, 2015).
Initially the digital marketing strategy had been initiated after taking certain feedback from customer and studying the customers. In that particular survey it was found that most consumers ask for a product demonstration after buying a product. Hence this problem is resolved to a large extent as in digital advertising the customers get to know every product details along with free demonstration visually (Killian & McManus, 2015). So when the first digital marketing of the company had started it got a very good response at the same time they the company was more influenced to carry on the project further with complete support from its customer. Through digital marketing the popularity of social networking sites and online markets gained much more importance as whole revenue increased at a drastic amount. The people are much more developed and modernized these days and they mostly opt for digital technology to help in purchasing of various items and products from the market. The same of the product equally increased than normal shops (Royle & Laing, 2014).
It can be concluded that L’Oreal is well reputed company whose products are mostly used by professionals and style experts. It invests a lot of price in the digital marketing process to make people well aware of its product. Apart from this it invests a large share to its research and development wing of the company so that it lures the lucrative mind of the customers. They make use of safe synthetic ingredients and composition so that expert results are obtained at a instant. However there is increasing demand for more advanced product from the consumers of L’Oreal at the same time there is an inclination among its customers for organic products as well. All these issues concerning L’Oreal in recent times have made them aware of the customer satisfaction and they are hence applying novice techniques to acquire it. In addition to this, they are also trying to get an effective and fruitful solution to this issue.
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