Essay Example on L'Oreal: Research, Innovation & Diversity Leader in Cosmetics World

Introduction

L’Oréal Group is the most dominant company that deals with cosmetics in the world. The company adapts to various cultures by keenly studying their target markets. Also, L’Oréal is known for embracing diversity, giving it a great environment that is corporate across its multiple offices. L’Oréal’s name originated from Oreale, which a hair dye’s formula. From the start, the guiding rules of the company were research and innovation. The company increased chemists gradually from the initial three in 1920 (Santos et al., 2017). Recently, the company has very many chemists, thousands of them. For products of coloring hair, L’Oréal came up with purifying products. The company continues innovating products, and it currently has thousands of varieties of beauty products. Along the way, the company has developed product categories, which can be utilized at home by customers and others at salons. The industry has grown in such a way that it has established many other companies. Nonetheless, the company has grown to be a giant in the field of cosmetics.

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Strategies

L’Oréal is a company that is centered on people. The industry is a leader in business all over the world. Most companies have issues with gender inequality, but L’Oréal is at the frontline in promoting equality. Research shows that the company’s workforce mostly comprises of women by a higher percentage. Women hold the most sensitive positions in the company. The company has remained diligent about sticking to the standards of equality and the stern employment of staff policies. L’Oréal was granted a top award for being a company with the most gender-balanced system in Europe (Withisuphakorn et al., 2019). The company has all along been receiving scholarships from every corner around the globe. Diversity is a crucial piece of L’Oréal because of the many products it produces to cover people from everywhere in the world.

Moreover, the company develops and sells a variety of products to various classes of people. They value people for their skills and professional qualities, and that is the reason why L’Oréal does not hesitate to employ disabled people. The industry has very many disabled persons working for them, and it continually encourages them to join the industry as long as skills were excellent. L’Oréal believes that internationalization is essential, but they put more emphasis on their business. They emphasize that since beauty is very diverse, that is why they are inspired to be creative and innovative. The division of innovation and research makes goods that will satisfy each customer per their ways of life (Nobre et al., 2019).

Having platforms for research and innovation is part of the strategies that L’Oréal has for marketing globally. In this case, the study and evaluate the cravings for the beauty staff of local customers based on their characters and tradition. The company desires to access every consumer around the world and provide them with products that are of good quality and easily accessible. One of the methods of how L’Oréal adapts to different cultures is by being flexible and adjusting well. Adaptability and flexibility are only some of the crucial powers of L’Oréal. The company does not only adapt to economic benefits but also as a form of adventure. The other way the company changes is by marketing ethnically. By multicultural marketing, the company adapts to various cultures. The meaning of ethnic marketing is, for instance, a company marketing to multiple people from a specific ethnic group. Marketing this way puts into consideration the customers’ different references for cultures like language and religion. The company should be informed about the customers’ variations in motives and how they see things. To succeed in market ethnically, the company realizes, apprehends, and gives respect to cultural differences (Withisuphakorn et al., 2019). The company uses the gaps to come up with ways of communicating and adapting their goods to the market standards. L’Oréal says that there is a lack of uniformity when giving service to both national and local markets. The brand ought to adapt the services of a business to the conditions in a particular market.

Responses from locals and integration globally need to comprehend the complex data to develop contemporary products and sell them accordingly. The product developers’ marketing teams ought to have a portion institutionally and culturally. Besides, developers of a product should have the language of understanding the market, and it requires full interpersonal collaboration. L’Oréal has a large notebook of various products for various cultures. An example is the Shu Uemura that belongs to a product category in Japan (Nobre et al., 2019). The company has very many offices in different countries. Surprisingly, the company has been on top of beauty and hair products.

L’Oréal should have a firm management team to adapt to the changing cultures quickly. The extraordinary worldwide victory for L’Oréal is based on its planning team that is more into its ancient culture. From the time the company was formed, it only recruited chief executive officers from the French. A countable number of topmost officials were from the outside. Nevertheless, as a worldwide company, L’Oréal has many multicultural professional teams for the development of products, which is vital for the company to maintain its angle of competition. L’Oreal should also maintain the balance of the global economy and local consumers. Also, they should respond to the desires of local customers. The company has to market its brands to large markets all over the universe. In the meantime, it should develop new brands every season or year to keep up its share of the market. Besides, the company will prevent competition from many enemies. For the company to maintain its competitiveness, L’Oréal cultivates more time and resources in research and innovation. When encountering and dealing with the challenges, the company should think about their product’s ingredients integrity. L’Oréal should maintain its title as the worldwide example of a calm and appropriate image of its consumers.

The company should have a concrete team for development that is international. L’Oréal was suffering from having only French officials, but it resolved the issue by recruiting international teams for management. The management teams are from many cultures. Developing a product may take a very long time before it is completed. After development, the groups present the idea of the developed product at the appropriate panel. Members of the team take almost one year in a training session for product making; they go to management workshops in France (Hassan & Othman, 2019). L’Oréal should embrace having a network of distribution paths to be able to adapt well. There are various categories of products below L’Oréal’s umbrella, so it uses diverse channels of distribution to provide products to all customers. Concerning the composition of the market, the products of L’Oréal are accessible in wholesale, retail shops, and even small shops.

Conclusion

In conclusion, among the very many strategies of marketing out there, one can use localization of brands as a method of succeeding in worldwide business. The localization of brands makes sure that the products adapt to the liking and tastes of local consumers. Therefore, releasing a product and making it local in terms of culture or climate is what it entails by localizing the brand. L’Oréal is a company that has made sure all their brands are locally available and accessible to their customers. The company continues to be the cream in cosmetics just by following simple marketing strategies.

References

Hassan, F.H., & Othman, A.K. (2019). Branding strategies on environmental sustainability among personal care and cosmetic customers. Journal of Islamic Management Studies, 2(1).

Nobre, P., Bilro, R.G., & Loureiro, S.M.C. (2019). The influence of cross-cultural effect on Kérastase (L’Oreal Group) consumer-brand relationship and engagement. The Influence of Cross-Cultural Effect on Kérastase (L’oreal Group) Consumer-Brand Relationship and Engagement. doi: 10.15444/GFMC2019.08.02

Santos, R., Au-Yong-Oliveira, M., Branco, F. (2018). L’Oréal and its innovative, differentiated positioning process in the beauty industry. In European Conference on Innovation and Entrepreneurship (pp. 717-XII). Academic Conferences International Limited.

Withisuphakorn, P., Batra, I., Parameswar, N., Dhir, S. (2019). Sustainable development in practice: A case study of L’Oréal. Journal of Business and Retail Management Research, 13, 1-13.