Advertising

Introduction

Aim

The main aim of the company is to provide best quality cosmetics to all the men and women around the world. Its aim is to meet the unlimited variety of beauty needs and requirements all over the world. Its aim is to provide access to those products that helps in enhancing the interests of the individuals. As per the brand L’Oreal, beauty is a commitment as well as a language (Hong and Doz 2013).

Scope

Background

L’Oreal is mainly a cosmetic company of French that is headquartered in Clichy, France. The company was founded in the year 1909. It mainly offers a broad range of beauty products which ranges from shampoo to make-up products. As per the reports, the company earned revenue of around $22 billion in the year 2013.

Campaign strategy

The campaign strategy of L’Oreal is very unique as it has its own unique approach to promote the brand. It is targeted to emphasize the positive qualities of the company as well as to introduce a new up to date image for the company. L’Oreal must get rid of the traditional principles so that get can get endowed in the modern society.

The main objective of the campaign is to draw more customers as well as to reduce the criticisms which are associated with its products and cosmetics. The strategy of the campaign also includes the objective of switching to normal people for endorsing their brand rather than celebrities. The reason is that the celebrities charge a jaw fall amount, whereas, by switching to normal people the companies will be able to save that millions. The strategy of the campaign has helped the company to increase the size of the target market. This has in turn helped to augment the loyalty of the customers by applying the incentive programs.

Environment

The Pestle analysis involves political, economic, social as well as technological.

The SWOT Analysis of L’Oreal is as follows:

Figure: The Scope of L’Oreal

(Source: Created by Author) 

Porter’s five forces

The five forces of Porter are as follows:

1. Supplier power
2. Buyer Power
3. Competitive Rivalry
4. Substitution threat
5. Threat of New Entry

Market segment

Figure: The Market Strategy of L’Oreal

(Source: Created by Author) 

A market segment is mainly a subgroup of individuals or organization that share one or than one feature that in turn cause them to share an identical product requirements. It is the process that divides the market into significant groups that are comparatively exclusive (Tournois 2012).

Brand Segmentation

The brand is specifically segmented across the pricing tiers as well as target audiences. The brand functions in the upper tier of the mid market. The brand strictly controls the retail channels so that the image of the brand is not weakened. Strict brand segmentation has been operated by L’Oreal across its portfolio in order to keep hold of the identity of the unique brand (Edu et al. 2013).

Target market

The target market of L’Oreal mainly consists of the female consumers. The target market is segmented into diverse groups which are mainly based on the age Each and every woman desire to have a beautiful skin and a youthful face. L’Oreal provides with that opportunity as they provide high technology products that help to fulfill this desire of the women. It is mainly a quality drugstore cosmetics brand that mainly targets the middle class working ladies (Tournois 2014).

The target market also include the teenagers and youth , who though may be financially dependent but still long for products that can satisfy them and are reasonably priced. The target market also includes the hair salons. According to the brand L’Oreal, hair salon is the center of ATTRACTION for the women as they always give their fortune with hairstylists. If the customer gets pleased with the type of hairstyle they receive from their hairstylists they will prefer to come to that particular salon again and again. It is often said that the style of the hair changes the beauty of a woman. A good hair style with high quality products will always work as a benefit for the hair salon. As a result, L’Oreal targets hair salons by providing L’Oreal professional products to them and uses this as a medium to reach out to their target market (Dizik 2013).

Positioning

The brand L’Oreal mainly focuses on the fact that they meet the desire of the customers by producing the quality cosmetics. There are three main line products to their positioning

1. The product of the consumers – These products mainly comprises of the teenagers as well as the women who are young (Wang 2015).
2. Professional products – These types of products are mainly for the hairstylists as well as the for the hair salon.
3. Luxurious products – The luxurious products are created for both the men and women of high quality.

Figure: The Positioning of L’Oreal

(Source: Created By Author)

Competitors

The cosmetic market for L’Oreal is huge. L’Oreal owns numerous products under its name and therefore in a way it can be viewed as a leader in cosmetics. It is also a leader in mass market of cosmetics. However, in order to compete with the rivals, it is very important for L’Oreal to make use of its Research and Development(R &D) Department. The main competitors of L’Oreal are Revlon, Lakme and Avon (Hong and Doz 2013).

Objectives of Advertising

The objectives of advertising are as follows:

1. The increase of the sales as well as profits – The key reason for the advertising done by L’Oreal is to increase the sales and the profit of the company. Advertising helps the individuals to evaluate the products offered by the company.
2. Encouragement of trial and usage – The advertising campaign is mainly used to encourage the trial and usage of the individuals which will help them to decide from where to purchase the products and they also offer special incentives to the first-time purchasers (Malhotra 2015).

AIDA also termed as Attention-Interest-Desire-Action

1. Attention or Attract – The brand L’Oreal makes use of advertisements that helps to draw the attention of the consumers. In that case, L’Oreal needs to integrate advertisement as a commotion. In order to achieve the commotion, L’Oreal needs to place the advertisement in unanticipated locations or state of affairs (Buis et al. 2015).
2. Interest – The advertisement should be executed in such a manner such that the customers hold on their interest on the brand. This is done mainly by creating a brief, entertaining as well as amusing advertisement (Gharibi et al. 2012).
3. Desire – In the AIDA model, interest and desire goes in hand in hand. Desire helps the organization to flourish and L’Oreal desires to meet the expectations of each and every people by generating more products (Rawal 2013).
4. Action – The last principle included in the AIDA model is the closing of the deal. Once the brand has gained positive reviews from its customers, it will arrive at the action stage.

Product Life Cycle

One of the most significant concepts in marketing is that of product life cycle. The main stages of the product life cycle are introduction, growth, maturity and decline.

Introduction – At this stage, L’Oreal needs to research as well as develop and then launch the product (Stark 2015).

Growth – This takes place when the sale of the company is increasing at a fast rate.

Maturity – When the sales of the products are near the highest however, the rate of growth is diminishing.

Decline – At this stage, the sale of the company’s product will fall.

Evaluation of the campaign

Message strategy

Involvement

L’Oreal mainly depends on the advertisement that is testimonial for its communication. In order to make an impact on the audience, it mainly uses the global campaign. The involvement of L’Oreal in the message strategy is high (Werder and Schweickart 2013).

Appeal

The ad strategy of L’Oreal is shifting the focus from highlighting the product as a brand of beauty to creating an emotional connection. An emotional message strategy mainly uses the feeling to sell. L’Oreal mainly uses this strategy to target the individuals and make them feel an emotional link with their product.

Unique Selling Proposition

The USP of L’Oreal is that it provides its customers with complete care. It is the main selling point of the products supplied by L’Oreal. It is the benefit of the product for the customers that draw the customers to buy the product of the brand. The USP mainly defines the marketing message which helps to attract the customers. “Because you are worth it” is one of the attractive message that helps the customers to believe in the brand (Shao and Bao 2015).

Execution Strategy

FCB stands for Foote, Cone and Belding that is used to write both strategy as well as superior strategy. The involvement of the consumers plays a major part in the FCB.

Tone of Voice

Each and every ad has its unique tone of voice. In that case, the tone of voice should be friendly so that the customers get attracted towards the product. However, if the tone of voice is angry in that case there is a very little choice left for the product to flourish.

Media Strategy

ATL or Above the Line mainly refers to the promotional strategy which is executed at the macro level. The media which includes the television as well as radio mainly generates an image about the brand and the company (Treasury 2012).

BTL or Below the Line is mainly done at the micro level and it is also alternative in nature. The measures under this method include email marketing as well as appropriate text ads. In order to generate a branding effect, the company uses ATL. However, in order to create loyalty as well as large sales, the company uses BTL. The promotions related with ATL are not easy to measure, however the promotion related to BTL is measurable.

TTL or Through the Line is that advertisement strategy that includes both ATL and BTL. The approach helps the brand to get connected with the customers at numerous points.

Conclusion and Recommendation

It has been highly recommended that it is very important to generate a physiological link with the product. As a result, it is significant to make use of the message strategy. The message strategy helps in creating a personality for the brand. The ATL strategy is also very important and it is executed at the macro level. The company needs to integrate both the ATL and the BTL method and the integration is termed as the TTL. The message strategies are very effective as well as the execution strategy.

References

Academy, P. (2016). Marketing Theories - PESTEL Analysis. [online] Professionalacademy.com. 

Buis, M., Johnsson, A. and Thormann, T., 2015. Fair Trade and its impact on the purchasing process: Using the AIDA model.

Calabria, L. (2015). ATL, BTL, and TTL Marketing. [online] Career Advice 101.

Dizik, A., 2013. Questions to Ask Before Determining Your Target Market.

Edu, T., Negricea, I.C. and Nicolaica, A., 2013. Facebook-a Marketing Instrument and Differentiator in Brand Positioning. A Case Study on L’Oreal Paris Romania. International Journal of Economic Practices and Theories,3(2), pp.92-102.

Gharibi, S., Danesh, S.Y.S. and Shahrodi, K., 2012. Explain the effectiveness of advertising using the AIDA model. Interdisciplinary Journal of Contemporary Research in Business, 4(2), p.926.

Hong, H.J. and Doz, Y., 2013. L’Oreal masters multiculturalism. Harvard Business Review, 91(6), pp.114-118.

Hong, H.J. and Doz, Y., 2013. L’Oreal masters multiculturalism. Harvard Business Review, 91(6), pp.114-118.

Malhotra, S., 2015. Impact of Advertising on buying behaviour of Consumers-A special reference to Fast Food Restaurants. Global Journal of Multidisciplinary Studies, 4(11).

Rawal, P., 2013. AIDA Marketing Communication Model: Stimulating a purchase decision in the minds of the consumers through a linear progression of steps. IRC's international of multidisciplinary journal of research in social and management sciences.

Shao, A.T. and Bao, Y., 2015. Unique Positioning to an Elusive Market: Targeting Teenagers. In New Meanings for Marketing in a New Millennium(pp. 111-117). Springer International Publishing.

Stark, J., 2015. Product lifecycle management (pp. 1-29). Springer International Publishing.

Tournois, L., 2012. Mass market leadership and shampoo wars: the L'Oréal strategy. Journal of Business Strategy, 34(1), pp.4-14.

Tournois, L., 2014. Too many products? Reaching the next billion customers of the beauty market. Journal of Business Strategy, 35(5), pp.3-13.

Treasury, H.M., 2012. Consultation on an'above the line'credit for Research and Development (R&D).

Wang, C.H., 2015. A market-oriented approach to accomplish product positioning and product recommendation for smart phones and wearable devices. International Journal of Production Research, 53(8), pp.2542-2553.

Werder, K.P. and Schweickart, T., 2013. An experimental analysis of message strategy influence on receiver variables: Advancing an integrated model for explaining the communication behavior of publics. In 16th Annual International Public Relations Research Conference, Miami, FL.