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L’Oreal is to launch the L’Oreal Paris range in India via opening company owned store outlets across the country. The Indian retail industry is growing by 20% annually which presents a good opportunity to make use of (Kotler and Keller 293).
Following are the marketing objectives:
- To gain a high market share of about 10% in India; and
- To develop an image of the highest desirable female cosmetics brand in India.
The strategy is to deliver the message to the customers in India that L’Oreal Paris has brought high fashion cosmetics to India that would allow Indian women to look extravagant.
Positioning and Target Market
L’Oreal Paris is to be positioned as a foreign cosmetics brand. The segmentation is based on demographic, behavioral as well as psychographic basis. The target market is females, aged between 19 and 40 having an income of more than $500 per month is meant for the new line extension.
The cosmetics product ranges that fall in the L’Oreal Paris include lip glosses, lip sticks, eye-shades, blushes, shimmers, < style="text-align: justify;">L’Oreal Paris will be launched with premium pricing in India. Discount offers will be followed after the first year of the launch.
The promotional campaign will revolve around the global slogan of L’Oreal “Because you are worth it” whist giving the high fashion appeal to the new product range title “L’Oreal
Paris. The persona of a bold, hip, extrovert and fashion conscious girl of the modern century will be reflected who mixes up the values of different cultures and lives big and large and does not let tradition stop her.
- TV Advertisements – these will be aired on English channels preferably in India and China such as Star Movies and Channel V and MTV in India and Channel V and MTV in China. The ads will include groups of girls each wearing Eastern as well as Western clothing reflecting tastes for high fashion and putting on L’Oreal Paris cosmetics ranges.
- Print Advertising in leading newspapers in magazines;
- Branded Taxis, which will be painted with the print ads of the promotional campaign;
- Fashion Magazines
- Celebrity Endorsements such as with Katrina Kaif of India;
- Sales Promotions – these include getting a plastic bag with L’Oreal Paris written on it free with the purchase of any product from the retail outlets.
- E-Marketing – L’Oreal Paris will use emails to send new promotional offers and explain product features to motivate and inform customers to try the store. Social media will also be used to create hype in the beginning as well as continually engage the female audience through discussions about product information and additions to the product ranges and information about the location of the retail outlets (Smith 184).
- In-store marketing and point of Sale displays will be used in the stores to attract attention the young impulsive buyers as well as inform them regarding the product range through posters and advertisements placed inside s well as outside the stores (Hines 234).
- Fashion Show – a sponsored fashion show will be conducted to display the entire line of Marks and Spencer and show at a large level its arrival in India and China.
Retail stores will be the main distribution outlets located in posh localities giving highest and easiest access to the target market of the brand, whereby using a direct distribution channel which is the specialty of L’Oreal Paris (Berman 22)Indian cosmetics market represents intense competition but L’Oreal’s positioning as a foreign brand will give it an edge.