A Strategy of Global Marketing at Loreal - Case Study Example

L’Oreal Introduction The L’Oreal Group is considered as the largest company which produces beauty and cosmetics across many countries of the world. With its main offices in Paris it has so many units and plants in the other nations of the world. It mostly concentrates on; skin care, hair color, make up, perfumes, sun protection and hair care. In United Nations, the company actively supplies pharmaceuticals and dermatological fields and is considered as the leading nanotechnology patent-holder. The study below considers the aspects through which the company is able to adapt a strategy of global marketing and why it has different cultural distinctions for enhancement of the prosperity in international markets. How L’Oreal is adapting a global marketing strategy The Company is widely represented by the many units which are located in various parts of the world. Apart from the distributors who are located almost in all corners of the world, it has five worldwide research and development centers: there are two in France (Chevilly and Aulnay), one in United States (Clark, New Jersey), and one in Japan and another one in Shanghai China. These centers concentrate on research and manufacturer of the unique cosmetics products which are distributed to all the centers across the world. Although the organization is operated by a common management committee which is also considered as the board of directors and expected to formulate common policies and principles, there are other operational policies which are formulated at the plant level depending of the culture of the environment. This is highly influenced by the external and life factors like political, social and economical which influence the behaviour of people (Armstrong & Kotler, 2007). Cultures of L’Oreal in Japan The main challenge of the company in the global market is whether it should adapt the general culture of the product thus considering the consumers in the global dimension or the specific culture of the location of each unit and still maintain the standardization of the products. Each country has got its cultures which should be adapted by any individual or organization surviving in it. The organization should lay its strategies for the operations of marketing and promotion of the make-up products based on the influence of the cultural activities or behaviour of the consumers. Considering the cultural activities of Japan is an essential aspect of marketing because it influences and needs and wants of the targeted consumers as well as having a positive impact in the efforts to interpret the communication of the products. Considering the behaviour of the consumers will enable the management and other operators of the organization to effective formulate the important aspects of manufacturing the products, for example, features of the cosmetics, packaging, symbolic attributes, promotion and service attributes. According to the report by one of the managers in the Company, Japan is one of the leading consumers of the products of L’Oreal Company (Marieke, 2009). Recently the company released a variant special Japan-only which reflects its success. For example, Maybelline Water Shiny lipstick which concurred with the fifth year anniversary of the new brand launch in Japan was new product was specially formulated based on the interests of the minds of women in the locality. This attracted the attention of the targeted group of people in the nation. It is worthy being noted as foreign product which is satisfying the needs and desires of the local women in Japan; it was conceived in the nation with the intentions of addressing the needs of the Japanese thus they were able to jointly develop with the local office of the Company. This is not the only product that is highly demanded in Japan but there are others like hair cares which the consumers specialize on depending on their needs and desires and highly boosts the stability of the organization in the nation by increasing their sales. According to the cultures of the locality, the Japanese women mostly consume cosmetic products of L’Oreal like the lipsticks depending on the current needs in the society (Schneider, 2008). Cultures of L’Oreal in Europe The Europeans are considered as the most alienated and influential people across the world with their cultures accepted almost everywhere. These cultures however have some uniqueness which identifies it from the rest of the world. L’Oreal has made its way in Europe because of the quality of the cosmetics products that it offers to the locals compared to the needs and desires of the community. According to the survey of college and university students; the Company was placed position two from position five in 2002 in the top list of the best performing organizations. Among the factors which were considered are the success of the market in the environment, offered products and services and the link between the organization and the locality. The cultures of the units of the organization located in Europe are formulated based on those of the local communities so as to meet the requirements of any successful company. The products and services are made available depending on the needs of the targeted audiences, for example, the local European women are so conscious of their appearance that they can spend anything on the products like cosmetics which improves it. The management of the organization therefore considers this while planning for the products and services to make available in the locality. This also enhances the development of the market because the consumers will buy things which can only satisfy their needs (Straubhaar & Larose, 2008). The link between the organization and the locality has also boosted the performance of the Company because the local nations like France, Australia, Belgium, Italy, Netherland, Spain and Sweden among the others. The residents of these nations have accepted the use of the products of L’Oreal and are enhancing the development of various plants and units through the provision of basic requirements like security and labor. These European nations have common cultures which are able to identify them from the other nations of the world thus considered as superior. They have a high purchasing power due to the well developed economic status thus have a stable market of commodities. Therefore, the management of L’Oreal Company supplies more of their commodities to these nations because of their well developed markets. This is enhanced by a careful research on the needs and wants of the targeted consumers thus only the desired products will be supplied (Marina & Bruce, 2009). Cultures of L’Oreal in China China is considered to be one of the most developed nations in reference to the mass economic activities that take place in it. It is the motherland of most of the commerce activities like manufacturers of products and their markets. Its residents interact with those of the other nations through commerce either by selling of their manufactured goods or buying of the raw materials. L’Oreal Company has invested considerably in all the economically developed nations like China through various essential aspects like: research, manufacturer and marketing of the products. This is considered to have made various contributions in the aspects of the world’s culture, art and science. The culture of China requires any organization to make and fulfill the pledges of a corporate citizen who will always do as per the requirements of the full citizens. the management of this company is able to achieve this by ensuring that their successful lasting business is built based on the ethical issues and standards which enhance its growth and the sense of the community responsibility , this their responsibilities are embraced on the community that they serve and its needs. For the success of the organization, the management keeps on visiting China for an assurance of a stable market of the commodities. For example, in July 2010, the CEO of the group, Mr. Jean-Paul Agon had a one week visit to China. This is done annually and it is a special moment for the entire group as they await the views of the CEO based on the expectation, suggestions and most valuable views for the market of China. In his last visit, the CEO showed interests in the cultures of the Chinese, for example, he together with the other prominent members of the group visited Hunan Provincial museum to view the exhibition of Mawangdui Han Tombs. They also visited the shelves and counters of their products to compare their status with the cultures, markets and the expected development of L’Oreal in the local market of commodities (Hellriegel &Slocum, 2007). The nature of the cultures I China is good manufacturer and marke4ting of the products with the intention of having positive effects in the economic status of the entire nation. The organization should adapt this culture so as to fit in the national policies thus easily survive the stiff competitions. Cultures of L’Oreal in Africa Africa is generally considered as a developing continent because majority of its nations are developing hence do not have well established cultures although some of the activities are too unique and entitled to the residents. The nature of manufacturing and marketing of the L’Oreal products is different compared to those in the developed nations because of the needs and wants of the residents as well as their buying power. L’Oreal is seeking for the expansion of its 100 years of business in Africa by entrenching its positions. This is enhanced by the efforts to design products which can fit the needs of the dark men and women by making them appear beautiful. Globalization and evaluation of the developing countries is forcing the cultures of the indigenous people to adapt those of the alienated communities which are more westernized thus the blacks also wants to live like the whites. For example, the Africans are struggling hard to change their natural appearances so as to reduce the gap between them and the European nations, for instance, relaxing of their natural hair to appear soft like those of the whites. In South Africa, the manufacturing facilities of L’Oreal products works together with another in Chicago for creation of variety of the specifically targeted offerings to fit the desires of the African local women to relax their hair or soften and lighten their skins with lotions (Garner, 2009). The management of the company is recommended to have a keen research on the needs and desires of the consumers so as to understand their views and enhance the organization to strategies on ways of expanding and developing even in the areas where potential is low. They improve the confidence of these people by making them feel good as well as building the confidence of the Company. Reasons why L’Oreal should have an understanding of different cultural distinctions for its different international markets Although globalization requires that equal policies in an organization be implemented across all nations of the world; there some cultural activities which are a bit unique to some nations and are not in others. These differences call for specialization in the cultural distinctions. Understanding the cultural differences within the targeted nations enables the organization to easily achieve its set goals and objectives like meeting the needs and wants of the targeted people by considering their activities. These are reflected in the planning for the cosmetic products to be supplied in a certain area and how to supply them on the basis of the interests of the residents (Hellriegel &Slocum, 2007). It is a requirement for all the members of the company to understand cultural differences in business due to the mixture of the populations in today’s countries. The ideas of these diverse cultures are considered while processing or marketing of the products thus it is easier to meet the needs of all the people at once. The interests of the individuals also differ with the activities or societal believes thus some of the products may seem insignificant in the European nations and very much significant in the African nations. L’Oreal is a multi-national or global business thus requiring sufficient knowledge of the cultural differences so as to easily understand how the other nations live and the beliefs of the entire population. For example, many of the nations believe that all alienated or educated women should have their hair long and well maintained as well as their skin while some other nations may not have any believe for this. This means that the management of the organization should think of the products to supply to these women for maintenance of their hair since it is a ready market of the products while they carry out a research to identify the interests of the other women and the most suitable market to supply them with the commodities (Armstrong & Kotler, 2007). Understanding of different cultures also helps the organization to understand the purchasing power of the residents thus is able to formulate the most suitable marketing guide. They are able to know how much products to supply and the returns to expect back. Conclusion L’Oreal is considered as the largest company which produces beauty and cosmetics products across the world. its main headquarters are in Paris and many other units and plants located in many other nations of the world especially the well developed countries and the management has also located the market of the products in many other nations even without the establishment of the manufacturing stations. There is therefore the need for the organization to understand diverse cultural activities and believes for the success of the marketing of the products. This enables the management of the company and other staff members to understand the needs and desires of the consumers thus considering them while planning for manufacturing and distribution process. It is also essential in the enhancement of the efforts to expand the business across various national borders. Reference list Armstrong, G. & Kotler, P. (2007). Marketing: an introduction. New York: Pearson Prentice Hall. Marieke, K. (2009). Global Marketing and Advertising: Understanding Cultural Paradoxes. Oliver's Yard: SAGE. Schneider, S. (2008). Managing across cultures. California: the University of California. Saxena, (2009). Marketing Management 4E. New York: Tata McGraw-Hill Education. Straubhaar, J. & Larose, R. (2008). Media now: understanding media, culture, and technology. New York: Cengage Learning. Marina, Y. & Bruce, W. (2009). China 2.0: the transformation of an emerging superpower--and the new opportunities. New York: John Wiley and Sons. Hellriegel &Slocum. (2007). Ie Managing: A Competency Based Approach. North Shore: Cengage Learning. Garner, S. (2009). Racisms: An Introduction. Oliver's Yard 55: SAGE Publications Ltd. Read More