L’Oreal is today one of the largest beauty products company with the portfolio that contains many of the world’s biggest hair and beauty products, including such brands as Garnier, Maybelline and Lancome. L’Oreal creates makeup, perfume, and hair and skin care products. More than 80% of the sales are generated outside of France in all the major territories. Liliane Bettencourt, daughter of the firm’s founder, and her family indirectly control L’Oreal.
For this module I have chosen L’Oreal’s lip product Glam Shine Crystals. Glam Shine Crystals is a lip-gloss, which makes the lips shine like crystals. It has an innovative heart-shaped wand for a perfect shine and for more volume.
‘Introduction to marketing’
Marketing is identifying customers’ needs and ensuring the satisfaction of customers’ needs and wants. The more specific an organisation is about who its customers are the better the chances of it success. For example EU set to ban mobile phone roaming charges understanding the customers’ needs. Vodafone said its customers would see their European roaming costs will be cut by 40 per cent.
Source of example used above – from the financial times of the MSNBC.
Marketing is essential for the success of any organisation. Their main aim is to facilitate the organisation by providing them with the right market research so they are able to meet the needs of their actual and potential customers. Marketing influences on the buying behaviour of its customers and individuals.
* What people want or need?
* How much are they willing to spend?
* How much do they earn?
* Their buying habits.
Keeping track of the above is the job of the marketing department in an organisation. Marketing is essential for the success of any organisation. Their main aim is to facilitate the organisation by providing them with the right market research so they are able to meet the needs of their actual and potential customers.
Marketing contains of many processes such as:
* Selling products
* Market research
* Creating desire
* Consumer/organisation objectives
Marketing is essential for the success of all businesses. Its underlying goals are:
* Understanding consumer needs: markets change rapidly and it is important for any organisation to be up to date with these constant changes of the consumers’ wants and needs. The organisations that have failed to do so have been in declining markets. L’Oreal keeps updated about the changing cosmetic trends around the world. As the cosmetic industry keeps changing rapidly
L’Oreal needs to be aware of what their consumers needs. Fashion is an ever-changing trend and with this ever-changing trend it brings in new cosmetic products. Glam Shine Crystals lip-gloss meets the needs of consumers that need a product that makes their lips shine.
* Keeping ahead of competition: businesses should consider their competitive markets and evaluate the competitive prices in order to provide a much better service and quality products. Businesses need to stay ahead of their competitors. They could also provide customers with a faster service.
* Communicating effectively with customers: businesses need to think of innovations that could help with the communication between suppliers, contractors and customers. It may also need to pay more attention to their promotion of products. Even the best product may experience poor sales, which is why promotional support is necessary for succession.
* Using new technology: the use of technology is now considered as the key to the marketing principles. It provides a new channel of worldwide distribution, for products that can be bought and delivered over the Internet.
* Co-ordinate marketing activities effectively: in order to achieve the marketing aims and objectives the departments in an organisation may need to operate more effectively. This could include the diversification of the work force and the diversification with the allocation of the resources available to the company.
* Beware of constraints on marketing activities: be aware of the problems which are associated with the marketing activities of a business. Make changes in order to achieve high profit margins.
The 4 principles of marketing are a good starting point for developing an organisation’s marketing plan. These are called the marketing mix. ‘Product, price, place and promotion.’
* Product: The characteristics of the business’s product or services that meet the customers’ needs. For L’Oreal their range of cosmetics such as lip gloss, mascara, eye-liner etc are their marketing mix product.
* Price: Pricing strategy. The money consumers need to pay to acquire the product. L’Oreal needs to keep their price of products competitive and reasonable depending on their target audience.
* Place: Where and how the customer can obtain the product. A business needs to ensure that its consumers can find their product in an appropriate place whenever they decide to purchase. L’Oreal is a huge business known around all over the world for its amazing branded products. Its products can be brought in most cosmetic shops. Glam Shine Crystals can be brought in all the cosmetic outlets too.
* Promotion: making awareness of the product to the consumers. The activities that a business undertakes to ensure that the consumer know about the product or service and its capabilities. L’Oreal needs to evaluate how it needs to
promote Glam Shine Crystals to consumers in order for it to be successful. Making awareness of the product through the promotion.
The 4 P’s of the marketing mix can be extended to Packaging.
* Packaging: this is linked with the protection, promotion and containment of the product. Effective packaging needs to be distinctive and recognisable and should reinforce the brand image. Packaging provides a more distinguished feature of the product to the market. This brings out the image of the business to the market. The packaging of the product needs to be persuasive and eye-catching. Glam Shine Crystals comes in different shades. It has heart shaped wand and comes in a sparkly container.
Above is the packaging of L’Oreal’s Glam Shine Crystals.
Common law and statutory law protect the consumer and ensure that marketing is carried out in a responsible manner. The maker and supplier of the product are responsible for the care of the consumer. If the consumer feels that the product is harmful in some way he or she can bring claim against the producer. A number of Acts made by the Parliament strengthen the consumer protection. Acts such as:
* Data Protection 1984: This Act protects the information that consumers provide to the organisations. Organisations that hold data of consumers need to register with the Data Protection Registrar. They should also agree to guidelines and security.
* The Sales of Goods Act 1979: all goods that are sold should meet three main conditions. Firstly be of satisfactory quality and should be flawless, secondly they should be fit for the purpose they are purchased and thirdly they should be as described on the packaging. For example L’Oreal cosmetic products should not be scratched or dented.
* The Trade Descriptions Act 1968: this act prohibits manufacturers from misleading or giving false statements about its products. For example L’Oreal’s waterproof mascara should not be running down the consumer’s face in the rain.
* The Consumer Credit Act 1974: the act protects the consumers who purchase product or service on credit. The consumer must be given a copy of any credit arrangement they enter into.