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    Unit 4 Marketing Principles Assignment Solution


    In an organisation, there are many departments that have their own importance in the attainment of common goals and objectives of business. Among all, marketing department is one of them which play a key role in introducing new products and services in the market for target customers. Ultimate sales and profits of company depends on marketing activities done by this department (Kotler and Armstrong, 2010). In the present report, as per the given case, the firm, L’Oreal has been chosen with reference to which there will be study on understanding the concept and process of marketing along with segmentation, targeting and positioning. Apart from that, individual elements of extended marketing mix will be discussed as well as marketing mix in different contexts will be highlighted.   

    Task 1


    Marketing Head

    L’Oreal, UK


    It can be said that there are number of key elements that need to be referred by management of L’Oreal in order to have effective accomplishment of marketing process. It has been noticed that working of organization is greatly dependent over elements of marketing. Company has developed a well-managed market position within the market by creating valuable and quality products and services to its consumers. In addition to this, it can be said that business firm need to focus on situational analysis so that key aspects related to work environment can be analysed in appropriate manner (Lilien, Rangaswamy and Bruyn, 2013). By having assistance of analysis the impact on overall growth and development can be converted in positive manner. It will allow to evaluate the internal and external business environment. With an assistance of this, key gaps can be overcome lead business to impressive level of success. Along with this, marketing audit is also critical element which is being referred effectively from management of L’Oreal. It allows to understand the market conditions effectively so that goals and objectives can be accomplished. With an assistance of this, framing of strategies is also beneficial so that competitive advantage can be gained effectively (Payne and Pressley, 2013).

    Development of plan is also critical task in which company focuses on the developing an effective plan to analyse the marketing needs and implement effective measures for the same. By having improved focus on such aspect, the level of working can be improved in appropriate manner. Along with this, formation of marketing strategies and their application is also critical to consider in appropriate manner (Aljukhadar and Senecal, 2011). In addition to this, monitoring of activities is also essential so that application of marketing activities can be taken into account.

    According to in-depth analysis, marketing orientation is one of most critical aspect which may lead business firm to impressive level of success. Through application of marketing orientation number of benefits can be attained such as quality improvement in products and services. Along with this, customer loyalty can also be advanced in appropriate manner so that business firm can have better competitive edge in the market. Measures of orientation has helped the company in developing consumer retention as well (Breton and Martín, 2011). Constant improvement of products and services has helped the company in enhancing product range and quality as well. In addition to this, it can be said that cost of marketing orientation is high at the initial level which might impact the overall outcome in diverse manner. However, the cost of marketing orientation application after few time is controllable which provide long term benefits to the organization. It will also allow to make sure that resource allocation is appropriate so that goals and objectives can be accomplished effectively (Chaharbaghi and Lynch, 2010).


    Junior Manager

    Loral, UK

    Also Read: Unit 3 Develop organisational marketing objectives Level 5 CBC College

    Task 2


    In this task, there will be discussion on the way in which micro and macro environment can influence marketing decisions of L’Oreal as well as on market segmentation principles. The segmentation criteria to L’Oreal will be highlighted with selecting a product from the range available for which an appropriate targeting strategy will be proposed. In addition to this, a new improved marketing positioning of product will be suggested here.

    Marketing decisions of L’Oreal can be influenced by its micro and macro environment. Micro environment includes stakeholders like customers, suppliers, employees, government and investors. It is important to keep them happy and satisfied to run all business activities in a smooth manner. It is because; dissatisfaction of them may lead firm to face severe issues like delay in availability of raw material, reduced customer base, increased rate of employee turnover, obligations from the side of government, etc. On the other hand, macro environment includes external factors like political, economic, social and technological that can be evaluated through using PEST analysis (Ahmed, 2014). These factors influence the marketing decision of L’Oreal to a high extent as all strategies are needed to be formulated by keeping in mind the same. They play a crucial role in assessing the threats and opportunities for business.

    Different segmentation criteria are there that L’Oreal can adopt for its range of products in different markets. As the firm is planning to launch its new product, that is, lotion for healthy skin, it can do demographic segmentation in which the basis on which market will be segmented is the age, income and sex. It is because; company is aiming to launch the product for females in between the age of 18 to 30 years who are more conscious about their skin and can spend a good amount on products which can protect their skin (Aljukhadar and Senecal, 2011). Another way of segmentation will be psychographic in which the basis will be social status of customers. As the product will be of high quality, it will be sold at high cost that a particular segment can only afford. Females who belong from high society will come under this segment who would not hesitate in spending money on buying this product.  

    For the new launch, that is, lotion for healthy skin, L’Oreal will use concentrated (niche) and differentiated (segmented marketing) targeting. Under the concentrated targeting strategy, company will design a promotional message in which it will communicate the benefits that a particular segment desires. It is like; making people aware with the benefits of applying lotion on their skin by which all spots will be removed and skin will shine. On the other hand, differentiated targeting will help in designing more than one promotional message where each one will be communicating distinct advantages of using the product (Breton and Martín, 2011). Through this, attention of customers can be grabbed in a better way by L’Oreal as when they will see numerous benefits of the same, their decision tom purchase the product will become stronger. 

    With the use of value positioning, L’Oreal will explain the reason because of which customers should purchase the product, that is, lotion for healthy skin. It will help the firm in convincing target customers to buy the product that will add more value and resolve their issue related to skin as compared to other offerings of competitor organisations. For the same, L’Oreal will use tool of digital advertising for promoting the product on social media and television. Through advertising on social media, company can grab the attention of large number of customers within a very short duration of time as well as at low cost (Chaharbaghi and Lynch, 2010). However, in comparison to social media, advertising on television would prove to be expensive. But, it will also render effective results as in today’s ear, everyone watches television. Thus, to make them aware about the product with showing its features and benefits, advertising on television would prove to be highly beneficial for the firm.     

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    With reference to L’Oreal different buying situations in which customers take decision to purchase the product can be explained on which the organisational activities largely depend. One most common reason that affects the buying behaviour of customers is environmental factor. Being in fashion industry, L’Oreal has to face issue of frequent changes in the market and consumer trends due to fluctuation in their tastes and preferences. Thus, if firm offers the product as per latest trends, people prefer and buy the same and vice-versa (Bose, 2010). On the other hand, factors like lifestyle and life cycle variable also play a significant role in affecting the behaviour of buyers in different situations. It is because; if products offered by L’Oreal will match with the lifestyle that target market follows, then it will get successful as people would purchase the same. However, if it will go against to their lifestyle, to make the product successful will not be possible. In addition to this, life cycle variables matter a lot as every product must go with the age of target customers (Henley, Raffin and Caemmerer, 2011). Like, generally old age ladies do not prefer to buy much cosmetics as they go for healthy products.

    Task 3

    In the present scenario, firms are using different ways for gaining competitive advantage in the market. L’Oreal is competing with the firms like The Estee Lauder Companies Inc., Maybelline, The Procter & Gamble Company, Unilever, etc. For the cited firm, product development is one of the best strategies to gain sustainable competitive advantage. In order to retain the existing customers, company can develop its current products and to capture the attention of new ones, new offerings can be launched like lotion for healthy skin (Arslan Altuna, 2010). It will prove to be helpful because product development offers both; physical as well as insubstantial benefits. Under the same, L’Oreal will screen the idea, perform concept development and testing, analyses business, do market testing and then implement the plan through technical execution and commercialization. At last, price of new product will be decided by the organisation in such a way that competitive edge over others can be gained (Delassus and Descotes, 2012). The new product, that is, lotion for healthy skin will be of high quality with which customers can be effectually satisfied.

    For the newly launched product by L’Oreal, that is, lotion for healthy skin, distribution will be arranged in an effective manner by keeping in mind the customer convenience. For the same, company will make the product available on all the stores that are offering cosmetic goods. Many a times, sale of product gets reduced due to the reason that it does not reaches to the ultimate customer on right time because of which they switch over to other competitor brands. However, company will take care of the same and make product available on right time so that customers would have convenience while purchasing it from the shops whenever they require (Gök and Hacioglu, 2010). Apart from that, to render customer convenience, L’Oreal has made its product available online by which all those customers who cannot go to shop for some or the other reason can order to product online. 

    L’Oreal will use strategy of premium pricing for finalizing the rate of product it is going to offer, that is, lotion for healthy skin. As per this, organisation will be offering high quality product at a high cost to the customers. Main reason behind charging extra cost will be the quality offered by organisation. When the quality of product is superior, it cannot be possible without incurring high cost in it. This is the reason; to charge high price for the same is required by L’Oreal so that costs of making it ready would be recovered (Hultman and Hills, 2011).

    Promotional activities adopted by L’Oreal are integrated with the marketing objectives of organisation as company aims at increasing profits and market share which can be only possible when customers would know about the products that firm is offering. For the new product, that is, lotion for healthy skin, company will be giving advertisement on television and social media by which attention of huge audience will be captured. When people would be known with what firm is offering and if they get influenced by the given advertisement, they would purchase the product by which sales will be increased (Henley, Raffin and Caemmerer, 2011). Thus, through enhanced sales, profits of company will get raised which is the main aim of business.

    In relation to L’Oreal, extended marketing mix in achieving marketing objectives is like:

    • People– Like any firm, in L’Oreal as well, management and employees play the most important role in performing marketing activities effectually. Company hires the best suitable candidates and train them in a way that objectives can be attained in the desired manner.
    • Process– All marketing activities of the organisation in L’Oreal are conducted in a systematic manner and specific process like uniformity of offering and product delivery on time. Firm considers the effectiveness and difficulty of these processes and thus, reaching to ultimate customers and satisfying them (Hollensen, 2015).
    • Physical evidence– Physical appearance of the firm, L’Oreal, is safe, tidy and healthy in which employees are working with high efficiency. People are working willingly and with high efficiency by having dynamic and modern facilities to work.

    Task 4

    International marketing is different from domestic marketing which is explained as below:



    As per the different culture and perspectives of people living in distinct nations, L’Oreal needs to do marketing accordingly.

    The area is small as well as the followed culture is not having much difference that makes it easy to do marketing.

    High capital is needed to be invested as for promotion, different mediums are required in distinct countries (Jobber and Ellis-Chadwick, 2012).

    Comparatively, less amount is required by L’Oreal to sell products within home nation.

    High risk is there as returns on the investment are not sure.

    The level of risk is less as well as returns are confirmed to a specific extent.

    The two segments decided for new product, lotion for healthy skin are on the basis of demographic and psychographic. For the demographic segment which is chosen on the basis of age, income and sex, the product will be of good quality and according to the latest trends and L’Oreal will make it available on all the stores which sell cosmetic product to provide customer convenience. Price will be charged to be reasonable which the segment can easily afford (Kotler and Armstrong, 2010). In this range of lotions, some will be of high price that will be offered to the psychographic segment as they as in this, high class society is targeted that is having high purchasing power. However, company will be offering value in against to the cost as product is of very high quality. It will be available on special shops like either on medical stores or with agents dealing in this brand (Arslan and Altuna, 2010). Promotion for both the segments will be done through advertising on television and on social media to grab the attention of large number of customers. 

    There is difference in marketing products and services to business rather than L’Oreal’s consumers which is explained as below:



    The target market is small as business sell their products to either one or two other firms.

    The target market is very large as L’Oreal is operating in many nations which is the consumer of its products.

    Huge marketing is not required as products are generally purchased in bulk quantity.

    In B2C, several marketing activities are needed to be performed by L’Oreal so as to lure the customers.  

    In B2B marketing, sense of attachment is not there.

    Customers get emotionally attached with L’Oreal’s products by getting their needs and wants satisfied (Delassus and Descotes, 2012).

    Long term relationship is there as business clients will remain with the firm.

    Relationship remains only the time other competitor is not offering some better product.


    It can be articulated from the above report that success of organisation highly depends on the way in which it performs the marketing activities. It has been assessed from the report that L’Oreal is one of the leading brands which is offering different health and beauty products to customers and sustaining since a long time by satisfying the target market effectually. Marketing department of the firm is performing their job with higher efficiency and develops products in such a way that customer’s needs and expectations would get satisfied. Company is performing its segmentation, targeting and positioning of products in a way that customer loyalty can be gained and high profits can be generated for the business.   


    • Aljukhadar, M. and Senecal, S., 2011. Segmenting the online consumer market", Marketing Intelligence & Planning. 29(4). pp.421–435.
    • Arslan, F. M. and Altuna, O. K., 2010. The effect of brand extensions on product brand image. Journal of Product & Brand Management. 19(3). pp.170–180.
    • Bose, D. C., 2010. Modern marketing: Principles and practice. PHI Learning Pvt Ltd.
    • Breton, G. C. and Martín, M. O., 2011. International market selection and segmentation: a two-stage model. International Marketing Review. 28(3). pp.267–290.
    • Chaharbaghi, K. and Lynch, R., 2010. Sustainable competitive advantage: towards a dynamic resource-based strategy. Management Decision. 37(1). pp.45–50.
    • Delassus, V. P. and Descotes, R. M., 2012. Brand name substitution and brand equity transfer. Journal of Product & Brand Management. 12(2). pp.117–125.

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