Marketing Mix of L’Oreal and 4Ps (Updated 2024)

The Marketing mix of L’Oreal analyses the 4Ps of L’Oreal, which includes the Product, Price, Place, and Promotion of L’Oreal. The L’Oreal marketing mix has laid the foundation for a robust core business model to help meet product demand, attract customers, boost brand presence, and achieve the brand’s success in the personal care industry.

The comprehensive marketing mix strategy of the L’Oréal company focuses on the entire portfolio of consumer products, product strategy, retail outlets, different price ranges, brand ambassadors, digital advertisements, sales promotion, and promotional mix to make sure that all the marketing objectives of the luxury products brand are taken care of in the vast market.

Introduction of International Brand L’Oreal

# L’Oréal

• Origin Country: France
• Founder: Eugene Schueller
• Founded: 1909
• Headquarters: Clichy, France
• Employees in 2023: 87,974
• Annual Revenue in 2023: 38.199 billion USD
• Net Income in 2023: 5.439 billion USD
• Brand Value in 2023: 11.217 billion USD
• Market Cap in 2023: 180.41 billion EUR
• Company E-commerce Site: www.loreal.com

The international brand L’Oreal is the largest cosmetics company and one of the world’s most popular personal care brands. Although it started as a hair color company, its products soon included skin care, sun protection, hair color, makeup, hair care, and perfumes.

Most L’Oreal luxury products are clinically proven and considered relatively safe for use. The company is also active in several fields, including tissue engineering, biopharmaceutical research, dermatology, and toxicology.

The consumer division of the largest company boasts of high-quality products and substantial worldwide sales. L’Oréal is a French company with ownership of 36+ brands, 500+ registered patents, and thousands of L’Oréal products. L’Oréal Professionnel Paris is known for technical products like the first cold perm and harmless hair dye.

The most successful of its brands are L’Oreal, Lancome, Ralph Lauren, Garnier, Matrix Essentials, CeraVe, and Kiehl’s.

One of the most popular subsidiaries of the company was The Body Shop, which was acquired in 2006 and sold to Natura & Co in 2017. Two brands, Galderma and Body Shop, were directly attached to the company at one time.

Target Market: L’Oreal Marketing Mix

L’Oréal is a favorite of women, although the target audience of the largest company is both men and women. L’Oréal products enjoy a considerable market share in the personal care industry because the brand offers professional products and products for the masses.

L’Oréal targets professionals, young consumers, and Generation Z consumers looking for high-quality products. Its market segmentation is dependent on demographic factors. The target audience of the renowned brand is upper and middle-class and high-income individuals looking for an entire portfolio of clinically proven product offerings.

L’Oréal Marketing Strategy & Marketing Mix (4Ps)

The L’Oréal Marketing Strategy & Marketing Mix (4Ps) has been the reason for the brand’s success, focusing on three guiding principles: product innovation, research, and technological advancement.

L’Oreal is the largest consumer product company, which has been able to hold on to its position because it owns 36 world-renowned brands and 500+ registered patents.

The L’Oréal marketing strategy ensures that the L’Oréal product strategy, distribution strategy, retail channels, pricing strategy, and promotion mix are at their best because they are vital elements in the company’s objective to attract customers in the professional and mass market.

L’Oreal Product Strategy

L’Oréal product strategy in L’Oréal’s marketing mix focuses on product innovation, the product line, product categories, and the innumerable product offerings. L’Oreal is a brand that caters to the customers. l’oréal successfully focuses on product demand with the help of various brands.

L’Oréal makes affordable beauty products for the mass market and premium products for upper-class customers and professionals. L’Oréal’s marketing strategy ensures that all L’Oreal products are categorized on targeted markets with the help of sales promotions across four divisions.

Consumer Division

The major brands under this division are-

• Garnier
• Magic
• Colorama
• Nicely
• 3ce

L’Oréal Luxe Division

The prominent beauty products brands under this division are-

• Diesel
• Lancome
• Ralph Lauren Fragrances
• Urban Decay
• Valentino Beauty

Professional Products Division

The prominent brands under the Professional Products are

• L’Oreal Technique
• Kerastase
• Matrix Essentials
• Botanicals Fresh Care
• Essie

Active Cosmetics Division

The prominent brands under Active Cosmetics are

• SkinCeuticals
• AcneFree
• Vichy
• Ambi
• La Roche-Posay

Product Mix in the L’Oréal’s Marketing Strategy

The product mix in L’Oréal’s marketing strategy puts the onus on its product line for skin care, hair care, hair color, makeup, and perfumes. L’Oréal Paris sells products for mass and luxury, and L’Oréal Professionnel Paris for professional markets. The company is also active in tissue engineering, biopharmaceutical research, insurance, health, and chemicals.

L’Oreal offerings include

Skin Care

For face and skin care, the company offers serums, cleansers, face masks, scrubs, toners, essences, creams, etc. It also sells products for various skin concerns like dark spots, dry skin, tanning, skin brightening, oil control, etc.

• L’ORÉAL PARIS GLYCOLIC BRIGHT GLOWING NIGHT CREAM
• REVITALIFT HYALURONIC ACID FRESH MIX SERUM SHEET MASK
• L’ORÉAL PARIS GLYCOLIC BRIGHT SKIN BRIGHTENING SERUM

Hair Care

Hair products for hair care include shampoo, conditioner, serum, mask, and night cream. It deals with concerns like oily roots, hair fall, damaged hair, split ends, breakage, dry hair, etc.

• L’ORÉAL PARIS EXTRAORDINARY OIL SERUM
• L’OREAL PARIS 6 OIL NOURISH SHAMPOO
• HYALURON MOISTURE HYDRA FILLING NIGHT CREAM

Hair Color

Hair products for hair color include temporary, semi-permanent, and permanent hair colors in red, brown, and black shades.

• CASTING CRÈME GLOSS REGULAR EBONY BLACK
• MAGIC RETOUCH DARK BROWN
• INSTANT ROOT CONCEALER HAIR SPRAY

Makeup

Makeup products are available for lips like lip liner and gloss, nails like nail polish, eyes and brows like eyeliner and kajal, and faces like foundation and primer.

• L’ORÉAL PARIS COLOR RICHE NAIL POLISH
• L’OREAL PARIS COLOR RICHE LIP GLOSS
• L’OREAL PARIS COLOR RICHE LIP LINER

Virtual Try-On

With the help of cutting-edge technology, the virtual try-on helps customers preview 100 shades of hair colors and makeup with try-on tools

L’Oréal, as a leading global cosmetics company, offers a wide range of products across several categories.

The product mix of L’Oreal in 2023 is as follows (Source)

1. Skincare Products: This includes a variety of creams, serums, cleansers, toners, and masks tailored for different skin types and concerns. They offer anti-aging products, moisturizers, sunscreens, and targeted treatments for concerns like acne or pigmentation.
2. Hair Care Products: L’Oréal has a substantial range of hair care products, including shampoos, conditioners, hair treatments, oils, and styling products. These are designed for hair types and concerns like color protection, repair, volumizing, and smoothing.
3. Hair Color: They are well-known for their vast array of hair dyes, offering options for permanent, semi-permanent, and temporary hair coloring. This includes products for both at-home use and professional salons.
4. Makeup: L’Oréal’s makeup line is extensive, covering foundations, concealers, lipsticks, mascaras, eyeliners, eyeshadows, and more. They cater to various skin tones and types and innovate in formulations and packaging.
5. Fragrances: Although not as prominent as their other products, L’Oréal does offer fragrances under various brand names.
6. Men’s Products: This includes skincare, hair care, and styling products tailored specifically for men.
7. Professional Products: Apart from consumer products, L’Oréal also has a range for professional use in salons. This includes specialized hair care, hair color, and styling products.
8. Dermocosmetics: These are specialized skincare products designed in collaboration with dermatologists, catering to more specific or sensitive skin concerns.

It’s important to note that L’Oréal owns several brands under its umbrella of cosmetics stores, each catering to different market segments and price points. These brands include L’Oréal Paris, Garnier, Maybelline New York, NYX Professional Makeup, and Kiehl’s.

L’Oreal Place Strategy

The place and distribution strategy in L’Oréal’s marketing mix has helped to create three global centers, 21 centers, and development centers, and six centers, all poles, so that the company can focus on spreading its product and brand presence in the target market.

L’Oréal India was formed in 1994 to provide customers with qualitative, effective, and safe products. It markets 15 brands and employs 1600 people across five locations with four divisions, two research and innovation centers, and two manufacturing facilities.

L’Oréal’s place strategy is as follows:

1. Global Presence: L’Oréal products are available in over 150 countries, ensuring a wide-reaching global presence. This includes both developed and emerging markets, tailoring products to meet diverse consumer needs and preferences.
2. Multi-Channel Distribution: They employ a multi-channel distribution strategy, including department stores, pharmacies, supermarkets, salons, and e-commerce platforms. This diversified approach allows them to reach a wide range of customers worldwide.
3. E-commerce and Digital Platforms: L’Oréal has significantly invested in its online presence, offering products through its websites and third-party retailers. This strategy has been essential in adapting to changing consumer behaviors and the rise of digital shopping.
4. Exclusive and Selective Distribution: For its luxury and professional products, L’Oréal uses selective distribution channels, such as high-end department stores and professional salons, ensuring brand prestige and exclusivity.
5. Local Adaptation: While maintaining a strong global brand, L’Oréal adapts its product offerings and distribution strategies to local markets, considering cultural differences and specific consumer needs in each region.

L’Oreal Pricing Strategy

L’Oreal’s markeL’Oreal’sx strategy has helped the company build a widespread distribution channel that ensures all the products are transferred from the manufacturing plant via the stock-keeping units retail stores to the end customer.

The distribution channels in the L’Oréal marketing strategy include

Manufacturing Plant >> Stock Keeping Units >> Retail Stores >> End Customers

L’Oreal marketing mix and marketing strategies ensure that all the products are available all over the world through the following

Retail Channels

The vast distribution network in the L’Oréal marketing mix and strategies include selling the products through department stores, supermarkets, perfumeries, health retail outlets, beauty outlets, direct mail, pharmacies, cosmetics stores, hair salons, own salons, and even e-commerce websites.

L’Oréal e commerce Websites

L’Oreal realizes the importance of its online store and has ensured high customer visits to it to sell products easily worldwide. Retail stores like cosmetics and department stores are undoubtedly popular. Still, even high customer visits and e-commerce have helped the company increase sales volumes and generate revenues in these changing times.

Price: L’Oréal Marketing Strategy

The price in the L’Oreal marketing mix strategy depends on preference and product demand. The company sells thousands of products; it has to maintain different price ranges for all the products. The brand ensures that the products are available in several sizes and price levels so that customers can buy as per their needs and pockets.

The consumer segment’s brands are the most successful, as they help increase sales volume and generate high profits. The superior product with a premium price range is equally popular amongst the upper class and professionals and has also proved to be a high earner for the company.

Pricing Strategy of L’Oréal Marketing Mix

The L’Oreal marketing mix and marketing strategies have considered various demographic factors and, after quite a deliberation, have adopted the following pricing strategies.

Premium Pricing Strategy

Some of the company’s products are premium products with premium price levels. The company has adopted premium prices as part of L’Oréal’s marketing strategy for luxurious products. The company’s products for professionals also come with premium prices as the quality is much superior to the products available for mass consumers.

Value-Based Pricing Strategy

L’Oréal’s marketing and distribution strategy ensures the company also sells products for the mass market. The pros do not have premium prices; the company has adopted a value-based pricing strategy where consumers can buy products at affordable rates.

L’Oréal’s pricing strategy is a sophisticated blend of various approaches, reflecting their position as a global beauty and cosmetics industry leader. This strategy can be broken down as follows:

1. Value-Based Pricing: L’Oréal employs value-based pricing for its products, setting prices based on the perceived value to the customer. This approach considers factors like brand prestige, product innovation, and quality, ensuring that the price reflects the product’s worth in the eyes of consumers.
2. Premium Pricing for Luxury Brands: L’Oréal adopts a premium pricing strategy for its luxury segments. Brands like Lancôme, Giorgio Armani Beauty, and Yves Saint Laurent Beauté have higher price tags, reflecting their high-end quality, exclusivity, and brand heritage. This strategy aligns with the expectations of a luxury-seeking consumer base.
3. Competitive Pricing in Mass Markets: The company opts for competitive pricing in more saturated and price-sensitive segments, such as those served by L’Oréal Paris or Garnier. Here, prices align with competitors to capture a broader mass market and base, focusing on offering value for money.
4. Dynamic Pricing: L’Oréal leverages dynamic pricing strategies, especially in its digital and e-commerce channels. Prices may vary based on factors like demand, competition, and market trends, allowing L’Oréal to stay agile and responsive in a rapidly changing market.
5. Price Segmentation: The company practices price segmentation across its various brands, product categories, and lines. This approach allows them to cater to different customer segments — from luxury buyers to cost-conscious consumers — effectively broadening their market reach while maintaining brand integrity.

Overall, L’Oréal’s pricing strategy is critical to its marketing mix, skillfully balancing maintaining brand value and appeal and being competitive in diverse global markets. This multifaceted approach allows them to cater to a wide range of consumers, from those seeking everyday affordability to those desiring luxury and exclusivity.

L’Oreal Promotion Strategy

L’Oréal has adopted an aggressive promotional strategy to promote its brand and products. It realizes the importance of a strong marketing policy and thus uses digital advertisements, ad campaigns, logos, slogans, brand ambassadors, social media marketing, and traditional media to its advantage.

The promotional mix in the L’Oréal marketing strategy includes

Traditional Media

L’Oréal’s” marketing strategy uses traditional media like newspaper magazines, billboards, hoardings, and television to show the advertising campaign.

Brand Ambassador

People look at the brand ambassador of a company to decide whether they should buy the product. Brand ambassadors and celebrities associated with L’Oréal company are Gigi Hadid, Bella Hadid, Jane Fonda, Kate Winslet, Naomi Watts, Jennifer Lopez, Aishwarya Rai, Eva Longeria, Anushka Sharma and Amber Heard.

Sales Promotions

As part of its sales promotion strategy, the company offers discounts, free samples, and coupons to promote its products in the market

Social Media Marketing

L’Oreal has deployed social media to strengthen its position in the market. It uses 120+ tools and several influencers to manage social media networks.

Sustainability Efforts

L’Oreal India ensures that animals are not harmed during the testing period of the products. The company has ensured sustainability through thorough packaging and selecting the best materials to present resources. The franchise brand launched Majirel, which uses a 100% recycled plastic cap.

Digital Marketing Strategy – Memorable Digital Marketing Campaigns

Because We Are Worth It

“Because We Are Worth It” is the advertising campaign that has helped the brand to remain in the limelight. This iconic tagline is now 50 years old but is still as effective as before as it manages to advocate women’s empowerment

Stand Up

In 2020, the brand launched an advertising campaign called “Stand Up Against Street Harassment” in India in partnership with NGO Breakthrough to make people aware of how women were facing the issue of harassment in public.

Key Takeaways in L’Oreal Marketing Mix

The key takeaways from the L’Oreal marketing mix are-

• The brand’s focus on quality and innovation is justified
• The premium price of the products is not an issue because of increased brand visibility in the market
• Maintain an aggressive promotional strategy to remain in the limelight

L’Oréal’s promotion strategy is multifaceted and dynamic:

1. Diverse Advertising: They employ a mix of traditional advertising (like TV and print media) and digital platforms (including social media and influencer partnerships), ensuring a broad reach across various demographics.

2. Brand Ambassadors and Celebrity Endorsements: L’Oréal collaborates with global celebrities and influencers as brand ambassadors, leveraging their popularity and influence to enhance brand visibility and appeal.

3. Product Innovation and Collaborations: Regularly launching innovative products and engaging in strategic collaborations, L’Oréal keeps its brand relevant and exciting, generating buzz and maintaining consumer interest.

Some Recent Video ads and Print ads of L’Oreal are:

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