Research On L'Oréal's Marketing Strategy In China

Cosmetics market is one of the most animate filed in Fast Moving Consumer Goods industry in China.L'oreal China Corporation is dominant in this market despite all severe competitions among all brands and companies.L'oreal Group has products and brands for Skin Care,Hair Care,Hair Coloring and Fragrance etc.Such as Lancome,L'oreal Paris,Mebelline brands perform well in their own category.During over 20 years journey in China,L'oreal group has conducted many successful cases of marketing.Here after there will be analysis and studies for L'oreal China's marketing mix via analytical structure of 4P marketing theory.There are many L'oreal ways of marketing strategies for Product,Price,Promotion and Place in China market.It studies China consumers thoroughly before deciding strategies.L'oreal China considers China market and consumer needs so that it can make strategies as:set up product mix for its brand pyramid,differentiated positioning,introducing international brands and purchase local brands,build unique brand service for brands,have mechanism of multiple pricing tier,have effective communication strategy and promotion plans,do well in public relationships,have vastly coverage of sales networks nationally,and have multiple layers of sales channels.So that it's marketing strategy can be adapted to market dynamics and market trend.Its brand kingdom has grown much to cover so many niche markets due to its successful multi-brand strategy.And each brand can grow well.However,this company didn't do well on handling the complexity of multi-brand management to develop every brand in a balanced way.It didn't do perfectly when handling market complexity and dynamics.It also didn't fully penetrated to all channels such as lower tier cities and towns.And it didn't fully facilitated opportunities during the rapid growth of digital marketing nowadays.This thesis has also demonstrated improving suggestions for L'oreal China's marketing strategies.For example,accelerating localization on product development,enhancing value&mass price tier,improving sales net of tier 3-4 markets,strengthening digital marketing in promotion strategy.L'oreal runs the company under the core theory of consumer-oriented and multi-brand strategy.However,there is still improving area because there's no perfect strategy.L'oreal China is still one of the most successful cosmetic companies in China.Companies in the same industry can learn a lot from L'oreal China.