Integrated Digital Marketing Strategy, Plan or Campaign on L'Oréal. By Dr. Hasan

 

Integrated Digital Marketing Strategy, Plan or Campaign on L'Oréal. 

Introduction:

This digital marketing plan aims to create an idea for a new product of the chosen brand, L’oreal Paris, to be launched in the United Kingdom market. This article will create a digital marketing strategy and launch a campaign using cutting-edge technology to optimise customer engagement with that product. A digital marketing plan is a strategy for reaching marketing targets using digital channels and platforms, and it details how a company intends to do it (Chaffey & Ellis-Chadwick, 2022). Digital technology, tools, and platforms are used to reach target audiences, increase brand recognition, drive traffic, and produce leads or sales (SendPulse, n.d.).

 

Furthermore, the integrated marketing campaign is a plan marketers employ to help and guide customers through the different stages of the buying process (StudySmarter UK, 2019). The chosen brand is a world-leading cosmetic brand that makes luxury products for both men and women, including hair colour, skincare, sun production, make-up, perfume, and hair care products (Wikipedia Contributors, 2024). Lastly, the report will be made with a digital marketing plan implemented using the SOSTAC model that concludes the SWOT analysis, Digital Marketing objectives- KPIs, Promotional Strategy, examples of Digital Marketing Channels, 7P analysis, and action and implementation (Chaffey & Ellis-Chadwick, 2022). Moreover, the campaign will use the 3H framework and social media listen-response loop. Subsequently, the report will be reflected using Gibbs's reflective cycle at the end.

 

Digital Marketing Plan (Using SOSTAC Model): 

The following section will demonstrate an integrated digital marketing plan for L'Oréal by using the SOSTAC model that concludes the SWOT analysis, Digital Marketing objectives- KPIs, Promotional Strategy, examples of Digital Marketing Channels, 7P analysis, and action and implementation (Chaffey & Ellis-Chadwick, 2022).

Figure-1: SOSTAC Model

(Source: Chaffey & Ellis-Chadwick, 2022)

 

Situation Analysis- SWOT Analysis

A SWOT analysis is a strategic planning method that aims to identify the internal strengths and weaknesses and the external opportunities and threats associated with a project or organisation (Chaffey & Ellis-Chadwick, 2022). SWOT framework is practical for matching an organisation's objectives, initiatives, and capabilities with the context (CIPD, 2019). The following section will investigate the SWOT analysis of L’Oréal Men Expert Moisturizer.

Table-1: SWOT Analysis on L'Oréal

SWOT	Application to L'Oréal
Strength	L'Oréal is more than just a name in the cosmetics industry; it offers budget-friendly products at department shops (Yang et al., 2023). Additionally, they now provide high-end products to the luxury sector, catering to customers with more disposable income. On the other hand, L'Oréal can reveal the perfect balance between affordability and luxury for a consumer (Xaif, 2023). Because it caters to so many niches in the cosmetics and beauty industry, L'Oréal focuses heavily on R&D(Research and Development) and utilises few chemicals in its products. Ultimately, this will increase customer involvement (Xaif, 2023).
Weakness	Complexities and challenges are inherent in undertaking such a large-scale operation, and L'oreal is no exception (Yang et al., 2023). The corporation is sluggish and unwieldy due to its several branches. People management is a significant issue for L'oreal because the company employs around 60,000 individuals. Hence, the costs associated with human capital are substantial (Xaif, 2023).   Due to more excellent R&D, organic, and distribution costs, L'oreal's profit margins are lower than rivals. While this is a shortcoming, R&D (Research and Development) has helped L'oreal become a top cosmetics company (Xaif, 2023).
Opportunity	Expanding the product lines and introducing new goods will result in a comprehensive growth of the product mix. L'oreal management will strive to achieve this objective (Yang et al., 2023). Additionally, there is a growing market demand for organic cosmetics. This demand is a positive indication for L'oreal employees engaged in organic research and development from the very start (admin, 2023). Technology has the potential to elevate Loreal's reputation. It can make shopping more enjoyable and tailored to each customer (Admin, 2023).
Threats	There is growing rivalry within the cosmetics sector; many countries are experiencing an economic fall (Admin, 2023). The L'Oréal Group may make the best products in its line, but some customers may not find that their products meet their basic needs, which could lead them to stop buying L'Oréal products (Yang et al., 2023).

 

Digital Marketing Objectives- KPIs or SMART objectives of L'Oréal.

Digital Marketing objectives are the indicators and metrics an organisation employs to measure the effectiveness or success of the campaign (Chaffey & Ellis-Chadwick, 2022). Keeping track of success concisely can be challenging without setting clear goals and objectives. In addition, maximising the return on investment for your digital advertising expenditure can pose a significant challenge (Wrike.com, 2023).

 

(L’Oréal, Paris)

KPI stands for Key Performance Indicator and is a measurable indicator of progress towards a goal. KPIs supply teams with goals to work towards, checkpoints to see how they are doing, and information that helps everyone in the company make better choices (Chaffey & Ellis-Chadwick, 2022). Moreover, it aids the whole business in moving forward at the strategic level, including everything from finance and HR to marketing and sales (Qlik, 2024). (Personio, 2023) justifies that SMART objectives are the ways to set specific goals that give workers, leaders, marketers, and salespersons more precise control over making, tracking, and reaching short- and long-term targets. They have five different parts that work together to help you figure out your goals, and the best way to reach them is to be specific, measurable, achievable, realistic, and time bound. Now, here are the KPIs and SMART objectives of L'Oréal.

 

KPIs (Key Performance Indicators):

1. Market share and Sales: The key metrics are revenue growth, unit sales, and market share, categorised as hair care, make-up, skincare, and perfumes (Yang et al., 2023). This measures L'Oréal's financial health, customer demand, and competitive edge. For instance, the company aims for 4-5% annual sales growth. To reach this goal, the company must remain the market winner and stay ahead of its competitors (L'Oréal, 2020).

 

2. Brand Reputation and Customer Views: Brand awareness, brand image, measures of consumer happiness, and devotion to the brand are the key metrics. These factors consider how consumers discern L'Oréal, how it affects their buying choices, and how it makes them loyal to the brand over time. L'Oréal does market research daily to oversee brand awareness and measure its "beauty for all" positioning resounds with varied audiences (L'Oréal, 2020).

 

3. Innovations and Product Development: The success rate for new products, time to market, and the rate at which new technologies are adopted (Zhong, 2023). These ensure future expansion by predicting consumer trends, remaining pertinent in a changing industry, and upholding L'Oreal's reputation for pioneering (Statista, 2023).
4. Operational Efficiency and Profitability: L'Oréal prioritises manufacturing costs, inventory levels, marketing ROI, and profitability ratios to ensure resource efficiency and financial sustainability. The organisation optimises operational efficiency and reduces production waste via lean manufacturing and data analytics. This strategy boosts profits and allows for reinvestment in innovation and effective marketing. These measures maintain resource balance and efficiency, helping L'Oréal succeed in the changing beauty and cosmetics sector (Statista, 2023).

 

5. Sustainability and Ethical business practices: L'Oréal prioritises carbon footprint reduction, recyclable materials, ethical sourcing, and staff participation in its sustainability plan (Zhong, 2023). This devotion resonates with socially conscious consumers and changing perspectives. L'Oréal will utilise 100% recycled plastic in packaging by 2030, showcasing its environmental sustainability (Yang et al., 2023). A thorough business sustainability strategy includes tracking and encouraging employee volunteer and community engagement. These projects demonstrate L'Oréal's corporate citizenship and satisfy consumers' environmental and social needs (Statista, 2023).

 

(L'Oréal, Paris)

Strategy- Promotional Mix Strategy:

(SendPulse, 2019) justifies that a promotion mix is a collection of different marketing strategies that marketers use to get their advertisements seen by more people and make their campaigns more effective. Therefore, marketers need to find the best marketing mix for each brand. Below are the promotional mix strategies that L'Oréal uses and operates under.

 

Table 2: Promotional Mix Strategies of L'Oréal

Promotional Mix	Strategy
Advertising	L'Oréal engages in television commercials and digital marketing via social media applications like Instagram, Twitter, e-mails, SMS, and content marketing (Zhong, 2023). The company is participating in sponsorships, events, and celebrity endorsements (Warc.com, 2024).
Sales               Promotion	L'Oréal promotes certain products through online discounts and offers, giveaways, gifts with purchases, and loyalty programs (Zhong, 2023). Cross-promotions, such as partnering with other brands, such as fashion brands (Warc.com, 2024), could also help promote the product.
Public Relation	L'Oréal creates and maintains relationships by engaging in community work and media relations, featuring customer testimonials (Yang et al., 2023). Moreover, it collaborates with brand ambassadors and leverages social media platforms for campaigns, live events, and real-time interaction (Warc.com, 2024).
Direct Marketing	L'Oréal mainly relies on E-mail marketing, SMS marketing, direct mail, and catalogues (Zhong, 2023). The brand’s website and mobile app offer personalised user experiences with online chat and customer support based on users' likes, dislikes, search history, and past purchases, which makes them easier to interact with and more engaging (L'Oréal, 2020).
Personal Selling	Personal selling of L'Oréal is shown by using beauty consultants, advisers, virtual consultants, online chat assistance, courses on skincare, multi-level marketing, customised sample offerings, and corporate partnerships (L'Oréal, 2020).

 

Digital Communication Channels:

Anything that can be communicated through digital technology is considered digital communication, and digital communication channels encompass a wide variety of digital forms of interaction (Chaffey & Ellis-Chadwick, 2022). Many forms of instant messaging, such as web chats, SMS, video conferencing, and email, fall under this category (Kuharenko, 2022). Here are the five digital communication channels that the company employs.

Figure 2: Digital Communication Channels

Source: (Gettalkative.com, 2022)            

           

a)    Social media: L'Oréal uses social media applications like Instagram, Facebook, YouTube and TikTok. The brand showcases its beauty products in a video or a picture in these apps. The content may be educational, tutorials, or behind the scenes (Yang et al., 2023). Moreover, L'Oréal leverages Instagram Stories to talk to its fans by posting real-time updates, polls, and Q&As and collaborating with influencers to make sponsored content (Arnaud Tamisier, 2021).

 

b)   Email Marketing: L'Oréal sends out emails with information about new products, special deals, and personalised beauty tips. Subscribed people get emails with links to in-depth articles, lessons, and deals. For example, L'Oréal addresses personalised emails with deals on specific product lines to get people to purchase them by linking directly to their online platform (Arnaud Tamisier, 2021).

 

c)     Webinars: L'Oréal organises seminars targeting industry experts, makeup artists, and beauty fans (Zhong, 2023). These seminars include emerging beauty trends, product demonstrations, and in-depth talks led by experts. L'Oréal specialists may present novel skincare products during a webinar, offer practical demonstrations, and interact with participants through live question-and-answer sessions, eventually leading to more customer interaction (Arnaud Tamisier, 2021).

 

d)    Mobile App: Personalised beauty advice, product suggestions, and in-app messaging are all available to the L'Oréal mobile app users. Notifications for new arrivals, special deals, or individualised beauty routines may arrive via push notifications from the app (Yang et al., 2023). For instance, L'Oréal's beauty experts are available through in-app chat, so users can perceive their concerns and get personalised suggestions without ever leaving the app (Vizard, 2018).

 

e)    Blogs: The brand’s official website features blogs featuring various articles on beauty trends, hair care, and skin care products to engage and educate readers continuously (Zhong, 2023). The company's blog also features interviews with beauty experts, helpful hints, and product recommendations for L'Oréal's skincare and cosmetics lines (Vizard, 2018).

 

 

Tactics- 7P Analysis:

Table 3: Demonstration of Tactics of Loreal using 7P analysis

7P Analysis	Application
Product	The company focuses on making high-end products with special chemicals and a mix of vitamins and minerals that help with skin problems (Mintel Store, 2023).
Price	It adopts top-quality prices, periodic discounts, and bundle offers (Mintel Store, 2023).
Place	It is sold in various places, such as department stores, drugstores, groceries, and online (Mintel Store, 2023).
Promotion	It is promoted on TV, radio, and social media sites and has eye-catching displays in stores. It also includes endorsements from famous people (Mintel Store, 2023).
People	They have responsible, well-trained teams that know a lot about their products and have leaders as well (Mintel Store, 2023).
Process	They use e-commerce sites to place orders online, shop in stores, and handle customer service tasks such as comments and general questions (Mintel Store, 2023).
Physical Evidence	Make sure customers have a good time when they shop by having well-organized displays of products, helpful salespeople, free samples, and an easy-to-navigate website (Mintel Store, 2023).

 

AIDA Model:

The following section evaluates the AIDA model applied to the case of L’Oréal.

Figure 3: AIDA Model

(Source: Fulfillmen, 2021; Chaffey & Ellis-Chadwick, 2022)    

Table 4: Demonstration of AIDA model in L’Oréal

AIDA	L’Oréal
Attention	Customers are interested in L'Oréal because of their ads, internet outlets, and endorsements from influential people (L'Oréal, 2021).
Interest	They get people interested by working with male beauty gurus or skincare experts on content marketing and influencer marketing (L'Oréal, 2021).
Desire	They stress the product's features, benefits, endorsements, and reviews to make people want it more (L'Oréal, 2021).
Action	Calls to action and in-store sales get people to act (L'Oréal, 2021).

 

Therefore, the foremost crucial digital communication channel for L'Oréal is social media applications. Through this channel, the brand spreads its awareness about the products to a large audience via applications like Instagram, Facebook, and Twitter. In addition, the brand uses influencers to gain more insights into its social media presence. People can get educational and enjoyable content from products and services like live webinars, Q&A, and customer feedback reviews. 

 

Action or Implementation:

The following section has evaluated the action or implementation plan for the social media marketing campaign of L’Oréal:

Social Media Listen-Response Loop:

We know several components comprise the social media Listen-Response (SMLR) Loop. For example, monitor several social media sites for mentions, analyse the data you receive, and respond strategically. This iterative method eases the growth of specific advertising campaigns and improves brand awareness and consumer engagement.

Figure 4: SMLR Loop

                      (Source: Chaffey & Ellis-Chadwick, 2022)                         

 

Harvest data: L'Oréal mainly harvests data through online purchases, customer loyalty programs, and social media engagement. They collect all the data on the customer's past purchases, product preferences, and what posts or videos they like, share, and comment on more (Media et al., 2019), (L'Oréal, 2021).

 

Create Content: L'Oréal incorporates interactive virtual try on its apps and websites, allowing customers to try the products virtually, improving the shopping experience. Moreover, the brand engages more in creating educational content and how-to videos (Media et al., 2019), (L'Oréal, 2021).

 

Advocacy: L'Oréal actively collaborates with brand-aligned influencers and celebrities. These influencers endorse L'Oréal and share personal experiences with their goods (Chaffey & Ellis-Chadwick, 2022). Collaboration with a famous makeup artist for tutorials benefits their following and increases their reputation. This advocacy strategy uses trusted celebrities to promote L'Oréal and build brand loyalty (Media et al., 2019), (L'Oréal, 2021).

 

Listen or Monitor: They monitor social media activities like hashtags, mentions, and comments, as well as real-time feedback from consumers. Furthermore, the brand's online reviews are also taken to leverage the information in marketing campaigns and consider expanding the product range to meet consumer demand (Media et al., 2019), (L'Oréal, 2021).

 

Respond or Participate: L'Oréal responds quickly to social media requests, demonstrating real-time interaction. The company also promotes community through interactive challenges and promotions. L'Oréal's hashtag challenges encourage users to showcase their customised cosmetic looks using the brand's goods, recognising, and applauding consumer innovation. Both initiatives improve brand-consumer ties and express L'Oréal's admiration for its active and varied beauty community (Media et al., 2019), (L'Oréal, 2021).

Figure 5: One more H, and it is a club.

Source: (Hymes, 2017)       

3H Content Strategy:

Table 5: Demonstration of 3H Content Strategy on L’Oréal 

3H	L'Oréal
Hero	The slogan of the brand is “Because You are Worth It”. They create viral social media video posts and collaborate with celebrities to launch products and offer new types of products under the "Hero" content umbrella (Yang et al., 2019)
Hub	L'Oréal often produces material on beauty-related subjects that aims to educate, inform, and engage the public by publishing blog articles or facilitating live question-and-answer sessions with representatives of the target brand (Yang et al., 2019).
Help	With FAQs, customer reviews, and keyword-rich material, L'Oréal ensures that its website and product pages are optimised for search engines (Yang et al., 2023).

 

Control Metrics:

In this section, the report will clarify the social media metrics: Applause, Amplification, and Conversation rates of the selected brand. Taking the data from the past month of December 2023, here are the results.

• Applause rate – 37.81%
• Amplification rate – 0.01%
• Conversation rate – 0.71% (L'Oréal, 2020)

The number of people who like the posts and shared content is relatively low compared to the share, but the viewers comment more. As a result, the conversation is higher than the shares. However, less than 10% of people converse among those who liked the content (Yang et al., 2023).

Conclusion:

In conclusion, the integrated digital marketing campaign used the SOSTAC methodology to design a digital marketing strategy for L'Oréal Paris. SWOT analysis shows strengths like product diversity. However, KPIs and SMART targets emphasise market share, brand image, and long-term performance. Advertising, sales promotions, public relations, direct marketing, and personal selling help L'Oréal sell. Influencers and internet bargains keep consumers engaged. Digital tools, including blogs, seminars, social media, email marketing, mobile applications, and Instagram and YouTube, boost the brand's online presence. The 7P analysis ensures that marketing considers product quality, pricing, distribution, promotion, professional people, streamlined procedures, and a pleasurable shopping experience. The AIDA model aids L'Oréal in creating a seamless customer journey by grabbing attention, sparking curiosity, making customers desire something, and pushing them to act. L'Oréal analyses data, creates content, promotes through influencers, and reacts strategically using control measures to improve plans utilising the social media Listen-Response (SMLR) Loop. The final suggestion would be to improve amplification, community interaction, and conversion methods, which can boost L'Oréal's online exposure and client trust.

References:

Admin (2023). L’Oréal SWOT Analysis - The Strategy Story. [online] The Strategy Story - Simplifying Business Strategies. Available at: https://thestrategystory.com/blog/loreal-swot-analysis/#google_vignette [Accessed 26 Jan. 2024].

Arnaud Tamisier (2021). L’Oréal’s new social marketing strategy: Listen to Engage. [online] Sprinklr.com. Available at: https://www.sprinklr.com/blog/loreal-social-media-marketing/ [Accessed 27 Jan. 2024].

Chaffey, D. and Ellis-Chadwick, F. (2022). Digital Marketing: Strategy, Implementation and Practice. 8th ed. Harlow, England: Pearson.

CIPD. (2019). CIPD | SWOT Analysis | Factsheets. [online] Available at: https://www.cipd.org/uk/knowledge/factsheets/swot-analysis-factsheet/ [Accessed 24 Jan. 2024].

Fulfillmen (2021). How to Apply the AIDA Model to Your E-Commerce Business.[online] Fulfillmen. Available at: https://fulfillmen.com/how-to-apply-the-aida-model-to-your-e-commerce-business/ [Accessed 27 Jan. 2024].

Hymes, T. (2017). Google’s 3H Approach to Content Marketing: Hero, Hub & How To. [online] Tony Hymes. Available at: https://tonyhymes.info/2017/01/13/googles-3h-approach-to-content-marketing-hero-hub-how-to/ [Accessed 28 Jan. 2024].

Kuharenko, L. (2022). Top 5 Effective Types Of Digital Communication Channels - Weblium Blog. [online] Weblium Blog. Available at: https://weblium.com/blog/types-of-digital-communication-channels/ [Accessed 27 Jan. 2024].

L'Oréal (2021). L’Oréal Groupe: Garnier To Empower 250 Million People Through National Geographic Edutainment To Live Greener. [online] L’Oréal. Available at: https://www.loreal.com/en/group/about-loreal/strategy-and-model/ [Accessed 27 Jan. 2024].

L'Oréal (2024). L’Oréal at CES 2024. [online] L’Oréal. Available at: https://www.loreal.com/en/commitments-and-responsibilities/for-the-people/promoting-diversity-and-inclusion/key-figures/ [Accessed 23 March. 2024].

Mintel Store. (2023). Skincare Ingredients and Format Trends - UK - 2021 : Consumer market research report | Mintel.com. [online] Available at: https://store.mintel.com/report/uk-skincare-ingredients-and-format-trends-market-report-2021 [Accessed 27 Jan. 2024].

Personio. (2023). SMART Objectives: Meaning, Writing Tips & Examples. [online] Available at: https://www.personio.com/hr-lexicon/smart-objectives/ [Accessed 26 Jan. 2024].

Qlik. (2024). What is a Key Performance Indicator (KPI)? Guide & Examples. [online] Available at: https://www.qlik.com/us/kpi [Accessed 26 Jan. 2024].

SendPulse (2019). What is Promotion Mix: Definition, Tips, Examples | SendPulse. [online] SendPulse. Available at: https://sendpulse.com/support/glossary/promotion-mix.

SendPulse. (n.d.). What is a Digital Marketing Plan: Benefits and Tips - Definition. [online] Available at: https://sendpulse.com/support/glossary/digital-marketing-plan.

Statista. (2023). Statista - The Statistics Portal. [online] Available at: https://www.statista.com/insights/consumer/brand-profiles/3/15/loreal/united-states/ [Accessed 26 Jan. 2024].

StudySmarter UK. (2019). Marketing Campaign: Definition & Examples | StudySmarter. [online] Available at: https://www.studysmarter.co.uk/explanations/marketing/integrated-marketing-communications/marketing-campaign/ [Accessed 24 Jan. 2024].

Vizard, S. (2018). How L’Oréal drives marketing effectiveness and media neutrality. [online] Marketing Week. Available at: https://www.marketingweek.com/loreal-drives-marketing-effectiveness/ [Accessed 27 Jan. 2024].

Warc.com. (2024). L’Oréal targets one billion new consumers. [online] Available at: https://www.warc.com/newsandopinion/news/loreal-targets-one-billion-new-consumers/26327 [Accessed 26 Jan. 2024].

Wrike.com. (2023). What Are Digital Marketing Goals and Objectives? | Wrike Guide. [online] Available at: https://www.wrike.com/digital-marketing-guide/faq/what-are-digital-marketing-goals-objectives/ [Accessed 26 Jan. 2024].

Yang, T., Yuan, K. and Zhang, Z., 2023, June. Research on the Influence of L’Oréal Paris’s Marketing Strategies on Chinese Consumers. In Proceedings of the 6th International Conference on Economic Management and Green Development (pp. 905-914). Singapore: Springer Nature Singapore.

Zhong, Y., 2023. Indicator Analysis for Cosmetics Companies: Evidence from L’Oréal, Shiseido and Estée Lauder. Highlights in Business, Economics and Management, 7, pp.42-46.