Wednesday, April 15, 2015

L'Oreal 4p's & Leveraging


"Because you're worth it"- Undoubtedly talking about the most prominent skin care brand L’Oreal. L’Oreal is a cosmetics, skin care, hair care brand which has grabbed a lot of attention from the consumers specially the female consumers’ heart. It has lots of beauty care products. The women who are conscious about their beauty, want to look more professional trendy hair style they actually prefer the brand. Extraordinary is worth celebrating. The women who want high intensity covers love L’Oreal. They told once “WE can grow gracefully- or gorgeously. I pick both.” 

The products are for the consumer’s eyes, lips, nails, hair development. It contains hair color, hair styling, and hair care products. The skin care products are the truth about aging, moisturizers, treatments, cleansers, make up removers, sun care, self-tanner etc.
L'Oreal’s innovations always start from its luxury brands then penetrate to the brands in different price level and different markets eventually implemented in its consumer brands. The prices of this products are highly moderate, what this brand charges is worth giving. It has the proper pricing strategy for each and every brand of their product line. If the quality is higher than another they charge a little bit more than the other product. So basically they are following contrast of value based & benefit pricing. 


Their position statement for L'Oreal products from the Garnier Institute are: "The combination of beauty and fashion". On the other hand position statement for all other L'Oreal products are: "All natural, all for you”. So by highlighting their natural factor they are differentiating themselves form others. Their distribution is highly appreciated because each and every cosmetic shop, their target consumers can get our desired products from the brand L’Oreal, so consumers are not disappointed by their distribution channel in any ways rather they are highly satisfied to have this renowned brands beside their hands. L’Oreal told their consumers” The more you tell us the more customized your beauty picks will be.” they appreciate their consumers to participate in giving their opinions about their brands and tell them actually what their consumers want. 


If we have a closer look then we will see that they follow some innovative techniques to promote their brands. They have leveraged the brand with celebrity endorsement. In perspective of Asia they highlight celebrity’s like- Aishwarya Rai. They have reputed brand ambassadors as well. It’s the first company in America to receive the EDGE (Economic Dividends for Gender Equality) certification, which recognizes companies for their gender practices. This makes it the sixth company around the globe to be certified. So their 3rd party sources play a vital role to leverage the brand. At last it can be said that if L’Oreal is able to minimize its product costs to some extent then it will be easier for them to retain large amount of customers. Because a lot of people might have willingness to buy their products but can’t afford to buy them for their high pricing. 



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