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Ombre Tie Dye Splat Hair Trends or Fads Pull and Push Social Media Strategies at LOreal Paris

Solution Id Length Case Author Case Publisher
2788 1505 Words (7 Pages) Katrina Bens, David Dubois INSEAD : INS676
This solution includes: A Word File A Word File

L’Oreal, a global cosmetics company, was started by Eugène Schueller to introduce different types of hair color styles and attract the target audience. Although L’Oreal targets both men and women, but the primary target audience is women. The targeted age of women from the 20s to over the 50s who prefer home-coloring of hair rather than going to salons. The major competitors of L’Oreal are Procter & Gamble and Unilever. L’Oreal is a parent brand of L’Oreal Paris, Maybelline, and Garnier. L’Oreal has a competitive advantage in the market because of its innovation, research, and availability of products worldwide. Additionally, L’Oreal, through its proactive strategy, captured the target market by introducing a home-coloring kit at low prices of salon-quality to provide ease to customers. 

Three major trends mentioned in the case study are tie-dye, ombre, and splat hair. Ombre was one of the leading trends of hair color in addition to tie-dye and splat hair from 2010 to 2013. All three new styles received crazy hype initially, but the one that became a trend was ombre. Ombre was initially adopted by celebrities and famous people, which got traction from the audience and the hair color brands.

Following questions are answered in this case study solution:

  1. What’s the target market of L’Oreal? What’s L’Oreal’s positioning against its competitors? Summarize L’Oreal’s branding and 4Ps and discuss how these strategies align with their targeting and positioning strategies.

  2. Use web listening tools to research the three styles identified (Ombre, Tie-Dye, Splat Hair). Evaluate which is a trend (i.e., one that endures change in style) rather than a fad (i.e., a short-term craze).

  3. Given the trend that you choose, how do you advise L’Oreal Paris to leverage social media to build the marketing plan for the new brand?

Case Study Questions Answers

1. What’s the target market of L’Oreal? What’s L’Oreal’s positioning against its competitors? Summarize L’Oreal’s branding and 4Ps and discuss how these strategies align with their targeting and positioning strategies.

L’Oreal has a wide variety of products, ranging from makeup to hair colors. Although L’Oreal targets both men and women, but the primary target audience is women. The targeted age of women from the 20s to over the 50s who prefer home-coloring of hair rather than going to salons. The target market of the 20s to 30s, living in a city, and wanting to look different, prefer a light change to the original color. The second market segment of women who are more sophisticated wanted a variety of new shades to apply to their hair. Lastly, women older than 50 desire to cover their grey hair with natural blacks and browns. Moreover, the men’s segment comprising less percentage of the target market, usually prefers natural colors to cover their grey hairs. 

The major competitors of L’Oreal are:

  • Procter & Gamble

  • Unilever

L’Oreal has a competitive advantage in the market because of its innovation, research, and availability of products worldwide. Additionally, L’Oreal, through its proactive strategy, captured the target market by introducing a home-coloring kit at low prices of salon-quality to provide ease to customers. This provided value to the customers and relieved their financial input. Hence, it assisted the building customer loyalty toward the company. 

L’Oreal is a parent brand of L’Oreal Paris, Maybelline, and Garnier. In the hair color segment, L’Oreal Paris has various children’s brands. For instance, Excellence, Preference, and Casting Crème Gloss. Different products target different segments primarily based on age and color preferences. Therefore, L’Oreal targets the mass market capturing a wholesome amount of share in the hair color segment. L’Oreal offers a wide variety of products to its customers. The product line includes hair color, makeup, and body care. The products are available in different SKUs, colors, and prices. The pricing of L’Oreal products depends upon the category, competition, value-addition, and demand of the product. L’Oreal is generally conceived as a premium brand as compared to its competitors because of its high pricing for innovative products. The products are available for services at the salon and hair color at home. Since L’Oreal is a global brand, it tends to follow multiple marketing strategies to increase customer engagement. L’Oreal focuses on personalized marketing to build customer loyalty. The marketing mix strategy adopted by L’Oreal assists the brand in maintaining its competitive position in the market. In addition to this, the wide product range offers the company to target a mass audience, capturing market share with its premium offerings and product development.

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