What is L’Oréal’s marketing strategy?
This company specializes in categories such as cosmetics, makeup, hair, and skincare. The professionals at L’Oréal invest billions of dollars every year in research and development for its products and have filed patents in more than 495 countries.
So, what is L’Oréal’s marketing strategy? Read on to find out.
What is L’Oréal’s Market Segmentation?
L’Oréal handles more than 30 brands with different product categories. For example, Dark & Lovely is a product line for African women. Through its different brands, L’Oréal focuses on respecting cultural diversity and the aspirations of all its clients.
L’Oréal’s market segmentation is based on demographic factors. Their clients belong to the middle and upper classes.
Their differentiation strategy of targeting middle, upper-middle-class, and high-income audiences makes them stand out from their competitors. This also brings many products to the market.
What is L’Oréal’s Mission and Vision?
L’Oréal’s mission statement states that they want their customers to have the opportunity to express their personalities so they can gain self-confidence. In addition to that, the people running L’Oréal have a vision for its future. They want to continue to attract millions of customers worldwide. How do they plan to do that? By creating various cosmetics that can satisfy one’s beauty desires and needs.
The company’s motto is a brilliant, concise summarization of all this: “You’re worth it.”
This reinforces their woman-centered approach to beauty by telling women to express themselves, be confident in who they are, and while also letting them know they deserve more in one simple three-word phrase.
It encapsulates both L’Oréal’s mission statement and company vision in an unparalleled stroke of marketing genius.
What is L’Oréal’s Competitive Strategy?
L’Oréal’s competitive advantage is divided into two parts: its company diversity and consolidated brand portfolio.
L’Oréal’s company diversity is clear; they have a sizable workforce of over ninety thousand people who are all of different nationalities. This is also one of the reasons why it has a large number of brands. By selling to different people in various countries and cultures, they can increase their reach while maintaining their belief in diversity.
L’Oréal’s consolidated brand portfolio is highly beneficial to its competitive strategy. Why? Because it gives customers many options — and that makes them want to buy from L’Oréal. The amount of options also makes L’Oréal appealing to customers. Options are a good thing to have; they increase customers and, in the long term, strengthen customer loyalty.
This is explored in more detail below in the section titled, “What Is L’Oréal’s Marketing Mix?”
What are L’Oréal’s Business Strategies?
L’Oréal operates its business through a traditional distribution strategy. This means they use wholesalers, retailers, and mom-and-pop stores to get their products to the masses.
Although, of course, they also use e-commerce websites — and it’s worth noting that these sites have had a significant impact on the brand. Websites are fundamental to product distribution for any company, and since 2016, L’Oréal’s sales have gone up considerably.
Thanks to this, the brand has also concentrated on other markets, and sales have been positive. In fact, by 2022, they have had a 19 percent growth in sales, exceeding $9 billion. Furthermore, the brand’s growth has continued in spite of Covid.
What is L’Oréal’s Marketing Mix?
A marketing mix strategy guides successful brands, and this is also the case with L’Oréal. In this way, they have positioned themselves in the market and surpassed their competition.
The L’Oréal mix marketing strategy works in the following ways.
L’Oréal produces products related to beauty and cosmetics. Thus, it has four main product divisions:
- L’Oreal Luxe: Kiehl’s, Lancôme, Giorgio Armani, Yves Saint Laurent, Diesel, Ralph Lauren, Clarisonic.
- Consumer products: Garnier, L’Oréal Paris, Shampoo, Maybelline New York.
- Active Cosmetics: La Roche-Posay, Sanoflore, Vichy.
- Professional Products: Matrix, Kerastase, L’Oréal Professionnel Paris.
Through these divisions, the brand offers mascara, blush, concealer, toner, hair color in different shades, lip gloss, and much more. All are produced according to the needs of the client. They also have different price ranges.
Each L’Oréal product is tested during production based on international standards. The tests do not harm any animals.
L’Oréal has made great profits because they are distributed in retail channels — in other words, their products are available to a mass market.
Professional L’Oréal products are available worldwide; they’re displayed centrally in many salons.
Luxe product divisions can be found at supermarkets, the brand’s points of sale, its online store, and in cosmetics stores. As a result, products can be expensive, but customers are willing to pay because they know they’re getting something high quality.
This price strategy means L’Oréal has penetrated the market.
L’Oréal has several distribution networks, which allows them to have a large presence in the market. For instance, their distribution includes hair and beauty salons, mass markets, e-commerce and travel retail. They have been acquiring companies worldwide and now have stores in 130 countries.
As an international brand, L’Oréal’s promotion strategy means they must promote products differently in every country.
Their aggressive promotional strategy focuses on independent and successful women worldwide. They collaborated with great celebrities such as Jenifer López and Cheryl in their campaigns. In India, many celebrities have been brand ambassadors, such as Aishwarya Rai Bacchan.
Le Défilé L’Oréal Paris – Paris Fashion Week October 2022
L’Oréal’s Goals for its 2022 Marketing Strategy
L’Oréal is one of the largest beauty companies in the world. Therefore, setting an example in terms of environmental conservation gives them a better corporate image.
That is why, by 2022, the company announced that the packaging of its products from the L’Oréal ELVIVE line would be 100 percent recycled plastic. This strategy focuses on products for sale in Central America.
They also have other projects that are focused on social impact. For instance, a program has also been announced in alliance with NGOs that will donate to the country’s most vulnerable communities.
Would You Like L’Oréal’s Marketing Strategy for Your Brand?
Although competition is intense in the personal care industry, L’Oréal is a great example of a brand doing marketing right. has done things right. Its plans are innovated based on the needs of potential clients.
When you have a strong marketing strategy like L’Oréal, you can meet your goals.
At BluCactus, you can find experts who, in addition to advising, will help you create an effective marketing strategy. Contact us now and we will gladly help you.
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