L’oreal marketing strategy: how was it carried out?

L’oreal marketing strategy: how was it carried out? 900 900 Studio Concept S.r.l.

Understanding great is the practical way to learn how to be great. From cosmetic product still life to branding design, we at Studio Concept place our know-how at the service of growth in cosmetics. Here are the cases of those who have made it.

The history and foundations of L’Oréal’s marketing strategy

The vision was probably already clear to Eugène Schueller, the founder who started the growth of the French giant in 1909. One only has to recall the iconic “Because we are worth it”, a motto in the rise of one of the most prosperous companies in world cosmetics.

More than 26 brands including Giorgio Armani and Lancôme belong to a strong portfolio. Around EUR 1 billion in investments and almost 500 registered patents are some of the numbers. The history of the brand is the result of a well over 100-year long journey, a strategy to follow.

L’Oréal’s product divisions: from broad public to luxury

One of the secrets lies in diversification, the brand has always been one of the most open to every slice of the market. The mission is to offer beauty within everyone’s reach, herein lies the reason for the strategic division in the offer.

Four divisions for a stratification of markets, the choice proves to be a winning one because it is able to reach every consumer segment.

  1. Products for the general public are the more democratic and lower priced ones, the classics that can also be found in the supermarket counter.
  2. L’Oréal Lusso is the most exclusive division, a true spearhead dedicated to the high-end.
  3. Cosmétique Active, on the other hand, is the department dedicated to skin health, an area more akin to healthcare sales channels.
  4. Professional Products is the channel that provides solutions for hairdressing artists.

L’Oréal SWOT analysis

Infusing courage into beauty choices is at the heart of the French giant’s signature strategy. Expanding the offer to reach everyone is the basis of a range so varied that it covers every need.

Diversification can become a weakness if there is only one player, here lies the ability to diversify brands and multiply the workforce. Opportunities arise from distribution strategy, it is all about integrating traditional channels with online sales.

The most classic of threats to the traditional market, the more convenient online channel, for L’Oréal is transformed into an opportunity in “phygital” logic: the classic physical channel merges with the digital market.

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What is L’Oréal’s marketing mix?

The case of the French colossus is not the only one, but it sets an example precisely because of the particular strategy implemented. There are three points in a project that guarantees competitiveness against the competition.

How are L’Oréal products advertised?

Adapting to change is the rule of survival that applies especially in cosmetics; one cannot think of a marketing strategy without a reactive fluidity to realities. Therein lies the sense of an advertising strategy capable of touching the more traditional channels as well as the Internet and the social universe.

The IoT also enters physical stores, so the wonders of artificial intelligence and augmented reality make it possible to multiply the information revolving around product choice. Then there is the personal touch, the brand offer is increasingly oriented in the direction of the tailor-made experience. Here, traditional advertising is amplified by the satisfied voice of the customer.

How much do L’Oréal products cost?

Being able to touch several price ranges is an advantage over competitors. The brand’s offer is divided into different segments of exclusivity: the luxury line and the line dedicated to large-scale distribution guarantee the same trust while differentiating themselves in the uniqueness of the solution proposed.

This is a finesse allowed only to those who invest significant resources in research and development, which is what allows the brand to remain competitive in every slice of the market. If over-the-counter products are the ones accessible to everyone, the more exclusive ones offer the open solution to those willing to invest a little more.

How can this be achieved? The core of the strategy lies in the differentiation of the brands involved.

Distribution and promotion strategy

In pharmacies as well as in department stores, L’Oréal is one of the ubiquitous cosmetics companies. The brand’s mission is fully respected, beauty must be a product accessible to all. If the challenge of the online market appears under control, the brand also proves itself capable of overcoming geographical barriers.

The presence in 150 countries is the result of a dedicated approach in the context of each market as it would be unthinkable to think otherwise. The result is a catalogue designed to respond to customer needs: the demands of the Asian market, for example, are very different from those of the African or European contexts.

Broadening one’s vision restores the sense of a reality that can point beyond.

A detailed analysis of L’Oréal’s strategy highlights how the French giant is an excellent example of how diversification and constant innovation can drive success in the competitive cosmetics industry. Continuous commitment to research and development, coupled with an effective marketing and distribution strategy, allows L’Oréal to maintain its position as market leader, while adapting with agility to the ever-changing needs of consumers.

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