This report involved the performance of marketing plan in respect to L’Oreal Company especially in respect to its shampoos brand and the environmental analysis indicated that there has been higher competition level in the industry. The company has certain major strength points such as good reputation, huge diversity of products within the shampoos division and as such, the marketing objective as considered appropriate is to achieve higher market share in the shampoos division. This can be achieved through targeting high end customer groups that are concerned with their hair and through adapting a suitable marketing mix strategy.
This marketing plan is mainly in respect to L’Oreal shampoo with a view to enhance its marketing image and thereby to increase its sales. The important aspects of marketing plan that are discussed includes a situation analysis, environmental analysis, competitor analysis, customer analysis, SWOT analysis and the designing of marketing mix.
An analysis of the existing situation with respect to the market of shampoo indicates that there are various major players in the market that has resulted into stiff level of competition within the industry. There are various companies offering different kinds of shampoos targeting different customer types. The situation with respect to shampoo dealers in the industry implies that different sellers are targeting different customer types such as shampoos for dry hair, dandruff, oily scalp etc. There is higher competition level in the industry and branded companies such as L’Oreal, Dove, Johnson and Johnson, Garnier and many more. The situation is therefore highly difficult for the shampoo companies to penetrate the existing market.
The environmental analysis through Porter Five Forces model is performed as follows:
An analysis of the competition level in the industry implies that there are various global players in the industry that have significant level of reputation and presence. The major competitors within such industry are Procter & Gamble, L’Oreal Group, Unilever Group, Avon Products, Colgate-Palmolive Co, Johnson and Johnson and many more. The existence of so many players at the global level poses significant level of threat in the form of higher competition level within such industry. In terms of major market leaders, Procter & Gamble occupied the market leadership position in the industry in 2011 with 11.5% market share, L’Oreal Group with 9.8% and Unilever with 7.8% in 2011. These are the major industry players in dealing with the shampoos and other cosmetic products.
Shampoos are the essential daily care products that are used on day to day basis by customers. With the increase in the number of companies providing shampoos and higher competition levels, there are various such variants of shampoo`s being available in the market. The customer expectations have increased significantly, and they look for different variants of shampoos for their different hair related problems. As for instance, the major hair related problems that are aimed to resolve by customer from using shampoos include dandruff problems, oil hair problems, dry hair problems and many more. Because of such higher customer expectations levels from shampoos, they are categorized has highly demanding. With respect to the customers of L’Oreal, they have higher level of expectations from the company especially in respect to dandruff products and this is mainly because of positive overall reputation being achieve by the company (Frazier, 1999).
A analysis of the strengths, weaknesses, opportunities and threats in respect to L’Oreal is performed as follows:
The main objectives of this marketing plan are
In achieving the above objectives, the selection of an appropriate target market is essential and in the context of given case of L’Oreal, it is identified that the best possible target market for its shampoo related products include the women that are highly conscious with their health. This includes women in the age group of 15-40 years and the target market for shampoos also include the men in the age groups of 20-40 years, as they are also highly concerned with their health conditions.
The marketing mix strategy for L’Oreal shampoos is indicated below