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Unit 19 Marketing Planning - Case Study L'Oreal


Marketing planning is a blueprint or documentation in which a description of business activities relating to marketing strategies and objectives. The marketing plan includes market segmentation, market mix, and market research that helps to increase sales and objectives to run the business operations smoothly and effectively(McDonald, 2013 ). L'Oreal established in 150 countries across five continents. And the success is at the international level L'Oreal used market strategies to achieve its success all over the world. Over the years , company is successful producing and selling different cosmetic products, haircare, and skincare products ( Wilson, 2010). In the project report we study various type of market segmentation and various market mix to achieve business objectives. Cultural and business environment directly affect the marketing strategies of companies.

Task 1

Marketing process is that process in which marketing manager used to make a marketing plan through which the organization achieve its objectives and goals. The various elements involve in the marketing process include marketing mix, market segmentation, targeting and positioning are used in marketing strategies to identify customer needs and desire are as discussed below-

Market STP- Segmentation is a process in which a large group divided into sub groups with similar characteristics (Reijonen,2010 ).Types of segmentation is geographic, psychographic, geographic, etc in terms of age , sex , income level , taste and preferences etc. Targeting is a process in which manager promote their target in that particular segment according to customer needs and wants. Positioning involves create image in the minds of customer.

Marketing-mix- In marketing mix process in which a consumer deliver product to its customer . Products involve a innovative design, wide range of features , affordable price (Shankar, Inman, Mantrala, Kelle and Rizley, 2011 ). Marketing manager used the best promotional tools like advertisement, sales promotion etc and distribute product to its final consumers in various channels.

Task 2

Business environment and marketing environment direct influence the marketing strategies of business. These are of two types Micro and macro environment that direct affect the L'oreal group marketing decisions are discussed below-

Micro environment- It is a internal environment that directly affects the business marketing decisions which is controllable by manager. It affects the L'Oreal group marketing decisions due to change in the customer's taste in terms of quality and price of a product.

Macro environment- It is an external environment which is uncontrollable. Political factor that direct influence the Loreal Group( Reijonen, 2010 ). It expand its business internationally and there is any change in rules and laws of any country in which Loreal group operate.

Every company needs a marketing strategy so they increase its sales and revenue form that particular market segmentation. L'Oreal group used market segmentation strategy to offer or deliver its products and services in a wide range in that particular area are geographic, demographic, psychographic and behavioral to boost up its sales( Parrott, Azam Roomi and Holliman,2010 ). Loreal provides a variety of products are Hair color, Skin Care, Sun protection, Makeup, Haircare products. To offer those products require market strategy, so L'Oreal Group uses Psychographic Segmentation to boost its sales.

There are different types of marketing segmentation that is to be used by various companies to boost up its sales by delivering their products and services which are discussed below-

Differentiated marketing- It mainly focuses on the entire market target rather than a particular segment.

Undifferentiated marketing – It mainly focus on different types of market segmentation it is to be designed to meet that market segmentation.

Concentrated marketing- It mainly focus on single marketing mix and single product.

Consumer buying behaviour influences the marketing activities. Cultural , social , personal and Psychological are the main factors that are controlled by marketers by change in the marketing activities.In different buying situation L'oreal group marketing strategy also affect . There are different types of buying situation are discuss below-

1.Routinized Response behaviour-.L'oreal group is a branded company and the people who buy these products are younger women and men.

2.Limited Problem-solving- In this situation if a branded company like L'Oreal sell its product Shampoo(McDonald,2013. ) .They promise that its Shampoo keeps it hair long and healthy but after using product a customer found that its hair becomes dry and falling.

Related Service: Case Study Help Online

Task 3

Marketing mix is a strategy that are to be used by every company to achieve its objectives. L'Oreal cover a wide range of products to satisfy customer all over the world. Loreal group deals in products related to cosmetic, skin care, sun protection, hair care and perfumes . To sustain competitive advantage they provide some of the consumer products are eyeliner , mascara, eye shadows , foundation , conditioner for hair care, skin tonner.

L'Oreal products are available in different size and price ranges available.

Marketing mix there are various elements include are product,price, promotion, place are used to achieve organizational objectives and goals. But these marketing mix have some shortcomings various marketing experts and researchers study on marketing mix. SO, there is a extend of the marketing mix are people, physical evidence and process are used by an organisation to marketing its services( Fugate, Mentzer and Stank, 2010. ).

Physical evidence- Physical evidence means building , layout , décor , color, pictures and staff outlets etc. Company sales is also depends upon its physical evidence.

People-People are the employees and staff members of any company. L'Oreal group satisfy its employees by providing various benefits and motivational techniques that affect the quality of service offered to customers.

Process- It is a process through which any organization used to perform to make something to achieve results. Customer of L'oreal group wants after sales services so what steps are to be taken by L'Oreal Group to deliver it high-quality service( Donnelly, Simmons, Armstrong and Fearne,2012. ).

Task 4

Difference between international and domestic marketing concepts are as follows -

Domestic marketing

  • In domestic marketing the data are easily available and accessed in a single language.
  • The exchange of products and service are transacted in a single currency.
  • Head office employees possess detailed knowledges of home market.
  • The message are communicated through promotional tools are to be consider in a single nation culture.
  • Market segmentation are done by marketers in a single country.
  • The market is divided into various groups so the marketers put all efforts into that target market. Loreal Group divide its market in Psychographic segmentation and Demographic segmentation also make marketing mix for both segmentation are as follows -

Psychographic segmentation – Loreal group segment their market in middle-class people and younger people. They provide a wide range of products to younger women and men a high quality product at an affordable price ( Chang, Park and Chaiy, 2010). They offer hair color, makeup, Shampoos, baby soap etc. They offer low range but a high-quality product to middle class people.

Demographic segmentation- Loreal market its product as low to poor people and minimize cuts cost as much as possible. At that time it cannot offer middle class as well upper class level.

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