MARKETING COMMUNICATIONS PLAN

Marketing Communication Plan for of L'Oreal Group

Marketing Communication Plan for of L'Oreal Group

Introduction

The study is related to the marketing communication plan of L'Oreal Group. Established in 1909 in Paris, L'Oreal is known for its mass-market cosmetics and hair color products. In the United States, L'Oreal's products are most often sold in drug stores and mass merchandisers like Walmart; brands include Maybelline and Garnier. In its latest financial report, the company states that its cosmetics division brings in 93.0% of global sales, with manufacturing occurring mainly outside the United States. Revenue for L'Oreal dipped in 2009, along with the rest of the discretionary consumer products market. Company revenue will total an estimated $20.4 billion in 2012.

Within its cosmetics division 40% of 2010 sales were generated from Western Europe, with a further 24% of sales derived from the North American region. New markets accounted for 37%, of which the Asia-Pacific market was the largest (48%), followed by Latin America (23%). In 2010, Western Europe had accounted for 46% of cosmetics production while the North American region accounted for 21.6% with factories in new markets accounting for 32.5%. In the same year, it spent €665 million on cosmetic and dermatological research and development (R&D), up from €533 million in 2006; and registered 612 patents, up from 569 patents in 2006. With 5,000 formulas developed each year, one-third of its annual R&D budget is devoted to advanced research. It also operates 100 active cooperation agreements with various academic and research institutions. Nestle owns 29.8% of L'Oreal SA with a further 31% held by the founder's daughter.

Strategy and Outlook

With a strong focus on the world's emerging markets, the group's current goal is to win one billion new consumers. Its mission is to make beauty universal.

In view of its improved performance in 2010, L'Oreal is confident of posting further sales and profitability growth. For the first half of 2011, it posted sales growth of 5.0% (5.2% on a like-for-like basis) with strong growth occurring within its Asian and Latin American operations. Sustained growth was reported for its North American operations. Of its cosmetics divisions, its luxury products division posted the strongest growth (sales up 8.5% on a like for like basis) with the overall division posting sales growth of 5.3%; sales within new markets increased by 10.1%.

Marketing Communication Plan

The L'Oreal Group marketing communication plan for the following years is important to develop, because it caters adolescents, adults and older adults as their target market, and adolescents, adults and older adults has effortless access to different mediums of communication digital. New researches and expertise has become an expanding tendency in the creative and brandish of up to date art. New kinds of newspapers and submissions have permitted up to designated day art into another dimension and unfastening a world of new possibilities. The L'Oreal Group has a broader variety of accessible ingenious devices and selects to use these as not only a way to conceive their work, but to brandish ...