Marketing Mix

By: Ivaan, Aarush, Simran, Kisha & Hrishika

 Companies Selected

L'Oréal is a multinational cosmetic & beauty company

Oreo is a famous sandwich cookie brand produced
headquartered in France. Founded in 1909, L'Oréal
by Nabisco, a subsidiary of Mondelez International.
has become one of the world's largest and most
It features chocolate wafers with a cream filling and
recognized beauty brands. It operates across various
has gained immense popularity since its inception in
segments, including skincare, hair care, makeup, and
1912. Known for its various flavors and limited
fragrance. Renowned for its innovative products.
editions, Oreo is a cherished snack worldwide.
L'Oréal has maintained a significant influence on the
global beauty industry.
01
01 Product
Current Re-vamped

Product: Oreo's core product is its classic sandwich cookie. Over the years, Oreo has introduced Variety Expansion: Oreo's commitment to
numerous product variations to cater to diverse consumer preferences and capitalize on trends introducing captivating and innovative flavor
variations meets the dynamic preferences of
● Flavor Varieties: Oreo has expanded its product line to include a wide range of flavors, such as modern consumers, fostering anticipation and
Double Stuf, Golden, Mint, Peanut Butter, and Red Velvet, among others. These variations brand loyalty.
provide options for consumers seeking different taste experiences.
● Limited Editions: Oreo regularly releases limited-edition flavors tied to seasons, holidays, and
pop culture events. These unique flavors create excitement and drive purchases, as Premium Line: By unveiling a distinguished
consumers are curious to try something new and exclusive. premium line of Oreo cookies, carefully crafted
● Themed Packaging: Oreo often packages its cookies in thematic designs to coincide with with the finest ingredients, the brand resonates
holidays like Halloween, Christmas, and Valentine's Day. This approach adds a visual appeal to with connoisseurs seeking an elevated and
the product and makes it suitable for gifting. indulgent treat.

Unique Selling Proposition (USP): Oreo's USP lies in its ability to combine familiar flavors and textures
in a unique way. Additionally, Oreo's innovative approach to introducing new flavors and limited Health-Conscious Options: Oreo's dedication to
editions keeps the brand fresh and exciting, making consumers eager to try new variations. health-conscious consumers is reflected in its
range of products with reduced sugar and
Product Life Cycle: Mondelēz said worldwide sales of its famous Oreo cookie brand topped $4 billion wholesome ingredients, embracing the trend
in 2022. The cookie's maker Mondelēz International Inc. reported another strong and profitable towards healthier snacking choices.
quarter indicating that it has reached or is reaching towards the maturity stage.
Product Evidence
02 Price
Current
Affordability and Variety: Oreo
maintains competitive pricing,
ensuring cookies are affordable and
widely accessible. Different package
sizes cater to diverse consumer
needs.
Market Entry Tactics: Oreo entered
price-sensitive markets like India with
a low-price strategy to establish a
presence. Successful products led to a
later transition to premium pricing.
New Market Approach: While
entering new markets, Oreo initially
adopted a low-price strategy to attract
consumers, paving the way for brand
recognition and eventual growth.
Re-vamped
Value Bundles: Oreo's value bundles,
encompassing an array of flavors or
complementary items, not only encourage
larger purchases but also enhance the
perceived value for customers, creating a
win-win scenario.
Dynamic Pricing: Employing dynamic pricing
strategies that respond to demand and
seasonal patterns enables Oreo to optimize
pricing dynamically, maximizing profitability
while staying attuned to market trends.
Premium Pricing for Premium Line: The
strategic premium pricing for the elevated
Oreo line aligns price with quality, heightening
the perception of exclusivity and
sophistication.
03 Place
Current
Distribution Network: Oreo utilizes
Mondelez's distribution network and
strategically located manufacturing
plants to ensure products reach
consumers worldwide.
Global Presence: Originating in the
UK, Oreo now operates in over 100
countries, including the US, Canada,
India, and New Zealand.
Channel Strategy: Oreo employs
traditional distribution channels to
deliver products to retail outlets,
shopping centers, supermarkets, and
airports in various countries, ensuring
easy accessibility for consumers.
Re-vamped
Direct-to-Consumer Channel: Oreo's
intuitive and efficient online platform
empowers customers to purchase
directly, ensuring a seamless
shopping experience while giving
them control over their choices.
Collaboration with Food Delivery
Platforms: Oreo's partnership with
prominent food delivery platforms
not only taps into the flourishing
trend of online food delivery but also
ensures wider accessibility for
consumers seeking convenience.
 04 Promotion
Promotion Re-vamped

Promotional Strategies: Digital Marketing Campaigns: Oreo's

Social Media Engagement: Oreo actively engages on social media platforms, sharing timely content investment in targeted digital marketing
related to current events and holidays. Initiatives like the "Oreo Dunk Challenge" encourage user campaigns across various platforms amplifies
participation.
brand visibility, engaging a broader audience
Collaborations: Collaborations with brands like Game of Thrones and Pokémon generate buzz and tap
into existing fan bases, enhancing visibility. and cultivating connections with younger
Event Sponsorships: Oreo sponsors events like the Super Bowl, using creative ads to enhance brand demographics.
exposure.
Interactive Content: Oreo's embrace of
Branding Aspects: interactive content, including augmented
Brand Awareness: Oreo's consistent marketing efforts and memorable slogans like "Twist, Lick, Dunk" reality encounters and engaging quizzes,
contribute to high brand recognition.
offers consumers an immersive and
Brand Development: Oreo's flavor diversity and limited editions expand its brand beyond the classic
cookie, catering to varied preferences. memorable interaction, forging lasting brand
Brand Loyalty: Oreo's emotional connections evoke nostalgia and joy, fostering strong consumer loyalty. connections.

Differentiation Strategy: Cause-Related Marketing: Oreo's launch of

Flavor Variety: Oreo offers diverse flavors beyond the classic, appealing to a range of tastes. purpose-driven campaigns spotlighting social
Limited Editions: Seasonal and pop culture tied editions create excitement and urgency. and environmental commitments resonates
Innovative Marketing: Oreo's creative campaigns and social media presence set it apart.
deeply with consumers, fostering a positive
Oreo combines market orientation and product orientation: brand image and reinforcing shared values.
Market Orientation: Adapting to changing preferences with new flavors keeps Oreo relevant.
Product Orientation: Consistent innovation and uniqueness drive Oreo's product-oriented approach.
Through the line Promotion
02
01 Product
Current
L'Oréal has products like cosmetics, hair care,
and skincare products. Despite the diversified
portfolio, Loreal mainly focuses on hair and skin
care products. Their hair and skin products are
considered to be the best in the market giving
them a unique selling point. The diversified
product portfolio makes Loreal appealing to
customers by giving them options and in the long
term increasing customer loyalty.
Product development:
Loreal innovation strategy allows it to develop
products continuously-
- HAPTA: a computerised make-up applier
- A 3d shu brow
- A water saver to save water in salon
environments
Re-vamped
Chemical-free products: Loreal should focus on making
products that are organically sourced and don't have harmful
chemicals like parabens, carcinogens or formaldehyde.
(https://pirg.org/edfund/media-center/loreal-pledge-to-be-toxi
c-free/)
Customization: By offering customized services to its
customers Loreal can improve its relationship with its
customers thus increasing profits. The customization can be
achieved in hair products, for example, by offering customized
shampoos to customers based on preferences and hair type
needs.
Inclusivity: Since loreal is a cosmetics and skincare brand, it
should focus on diversifying its products to cater to different
skin colors and types. The same can be done for hair products
by developing different products based on different hair types
and climatic conditions in different countries.
Product proof
USP, Differentiation & Product lifecycle
Differentiation: Loreal invented a SPOT tool- sustainable Product Optimization Tool. The tool investigates the environmental and social
impact of the products it sells to identify measures for improvement across - the packaging, the footprint of the formula, the sourcing of the
ingredients and the social benefit of the product. The tool helps reduce the environmental footprint of the products sold in terms of packaging
and products, thus prompting sustainability.

USP: Regarded as the best hair care company due to its range of products which is based on the “problem” the customers are facing in terms
of their hair. Loreal has products classified for different issues like “breakage”, “oily roots” etc. The problem-solution structure gives Loreal a
unique selling point because it makes shopping for hair care products easier for the customers, thus helping to establish good customer
loyalty.

Product lifecycle:
Loreal introduced this product to the consumers through a commercial platform by frequent advertisements with John Abraham becoming the
brand ambassador from India. Initially, the sales were low as it was just launched in a new segment and regular promotion was necessary for
the face wash consumers to drive their taste from a normal men’s face wash to a more segmented face wash which extracts extra from skin.
This was necessary to reassure the consumers that the product used by them is being used by almost all the youth.

Maturity stage: This stage is when the sales are maintained when it is in the growth stage. Only thing a brand should take care is of that the
consumer should not lose interest off the product and should maintain the number of users it already has. To reduce the costs, no new
distribution channels should be opened and the product should start withdrawing from sectors having low sales to reduce costs
Decline stage: In this stage, the sales reduce because of variable consumer taste or due to the launch of some other domestic or international
product. The sales might go low or might even diminish as low as nil.
Product life cycle
RESEARCH AND DEVOLOPMENT : The stage involves the development of ideas through market
research or innovation. The idea of innovation is the key to Loreal’s business model. They invest a
billion euros a year n the research blending science and creativity to invent the future of beauty
and stay ahead of the curve.
LAUNCH : It is the stage where the developed product has been released into the market.A
significant amount of promotion is required at this stage to advertise the newly launched product
In 2003, L’Oréal opened its first factory in India at Pune to localize production. Being based in India,
among Indian consumers, L’Oréal was more easily able to innovate in its products and packaging
formats. Production capacity was doubled around 2011.
GROWTH: Sales growth and brand recognition increases at this stage. : For India specifically, Loreal
launched culture specific ad campaigns featuring famous Indian celebrities and engaging in CSR
opportunities in India like the stand-up initiative and the women in science scholarship
initiative.The home hair-colouring kits that were widely used in Europe and the United States at the
time were not available in India. This was a huge gap in the hair-care segment, and L’Oréal
immediately capitalized on this opportunity. Considering that these women—who were conscious
of their hair colour and dryness— belonged to the rising middle-class segment, L’Oréal brought in
a product for them, steering away from the mass-market segments that it had initially targeted
with Ultra Doux. It introduced L’Oréal Excellence Crème, a relatively expensive hair dye that came
in a cream form that was gentler on the hair than liquid dyes
MATURITY: At this stage, the rate of sales of the product slows down, although the company still
has significant market share.
DECLINE: Sales revenue and profit fall at this stage. Loreal is still is its maturity stage . It is evident
through the graph that loreal sales are still staggering and the company is making sufficient profits
for it to succeed in business
02 Price
Current Re-vamped

The consumer products division brands are

distributed in retail channels making it
available to the mass market. As a result, they Dynamic pricing: Due to the changing
earn huge profits from this division. The trends in the beauty industry, the chances
Professional products are available at salons of prices fluctuating are high. Loreal should
worldwide so when a customer visits these actively alter its pricing strategies in
salons they are ready to pay for these response to competitor pricing and market
products owing to quality and reliability over situations.
competitor.
Loreal uses psychological pricing to appeal to Value deals: By using discounts and
customers and make them believe that they product bundles, Loreal can attract more
are receiving a better deal. customers, especially for the luxury
products division, thus increasing its
Loreal has products in different price revenue.
ranges - luxury and consumer divisions. The
different pricing strategies help to target
different consumer bases thus increasing
profit. To achieve that they have research and
innovation marketing hubs, one for each of
their strategic markets.
03 Place
Current Re-vamped

Pop-in stores: Loreal can set up

➢ Loreal makes sure they have a distribution network to enable a strong market presence. They have temporary stores in highly
acquired many different companies worldwide to increase their brand presence. Their presence has commercial areas to engage with
grown and is now present in 130 countries in 5 continents. customers directly and increase
➢ Loreal uses retail distribution strategy combined with e-commerce. Their products are sold in sales.
many retail stores like supermarkets like D-mart or reliance, convenience stores, or departmental
stores. Aside from that, Loreal has kiosks in many famous fashion retail stores like lifestyle or
shoppers stop which enhances in-person interaction and brand recognition.They have set
themselves into different markets by training hairdressers and putting themselves in all sectors of Multi-channel approach: Using a
distribution, online as well as in-store distribution. It has a strong online precence and sells variety of approaches like websites,
products through its website and other online platforms like nykaa, amazon and flipkart retail shops, mobile apps, temporary
strengthening its e-commerce trade. stores, beauty stores etc , in highly
➢ For Loreal, universalization is about having a truly global presence through a unique organisation. urban settings helps to ensure that
It focuses on empowering local teams and being accessible to its customers. Loreal also has a global the customers can access the
industrial presence, so newer innovations can be brought to market quickly. products through multiple manners
04 Promotion
Promotion Re-vamped

Loreal uses a Through the Line marketing strategy through which it targets a wide audience Products for niche customers: Promoting
of women globally through mass media platforms like Twitter, Facebook, and products to niche consumers as well. Loreal
advertisement. focuses on the niche consumers. They have a
Loreal uses an aggressive marketing strategy and uses powerful, independent women as wide product range of products in the world that
the “faces” of the brand. A few examples of women who have endorsed Loreal are: Julia deal with all sorts of skin issues. But they try to
Roberts, Jennifer Lopez and Cheryl. score outside of their usual demographic and
It employs diversity in its employee base and product portfolio. It has a brand called Dark sticking to their target audience or their niche
and Lovely - a product line, especially for African women and focuses on respecting cultural consumers would build more brand recognition.
diversity. If Loreal means to change consumer minds, this is
one way they could accomplish it.
Loreal has employed various CSR opportunities like -
- The Women in Science initiative where Loreal collaborated with UNESCO to honour Product testers in retail stores: Partnering with
women from around the world for their exceptional contributions to science. retail stores helps to put forth the products in a
consumer market and providing free samples and
- The brand launched an e-mentorship initiative in partnership with The Prince’s testers enhances the shopping experience for the
Trust, The platform connects young people to e-mentors from companies like customers, thus increasing brand loyalty, and
L’Oréal and other organisations who can provide online advice and support. increasing the customer's chances of buying the
- The Beauty For A Better Life Programme was established by L’Oréal India in 2009, products.
with an aim to create livelihood opportunities for young women from
disadvantaged sections of society.
THROUGH THE LINE
PROMOTION
 Branding Aspects
Brand awareness: The company has achieved high levels of brand awareness due to its iconic
change in slogans from “Because you’re worth it” to “We are worth it” to further highlight its focus
on diversity and be more inclusive.
Brand development: Loreal is a world recognized brand that has continued in innovating and
expanding their product offering from cosmetics to skincare and hair care as well. They got their
name from the brand image they have set up worldwide in every part of the globe. They try to
implement unique ways for innovation, sustainability and inclusivity.
Brand Value: L’Oréal’s six values - Passion, Innovation, Entrepreneurial Spirit, Open-mindedness,
Quest for Excellence and Responsibility - have helped Loreal to succeed in becoming a renowned
company today. The values shape the decisions and the working of loreals improving the image of
the brand in the eyes of existing and potential customers.
Brand loyalty: Die to lo’reals digital attitude where customers can try cosmetics and hair products
virtually, thereby increasing customer loyalty. Around 18% of face care users in the United States
say they are likely to use L'Oréal again. Set in relation to the 22% usage share of the brand, this
means that 82% of their users show loyalty to the brand
Acknowledgement
IB paul haong’s 5th edition business management textbook
Loreal:-
https://www.marketingweek.com/loreal-power-diversity/
https://www.statista.com/statistics/1346435/global-market-share-of-loreal/
https://www.forwomeninscience.com/
https://www.loreal.com/en/india/articles/commitments/india-beauty-for-a-better-life/
https://pirg.org/edfund/media-center/loreal-pledge-to-be-toxic-free/

Oreo:-
https://www.sugar.org/blog/the-sweet-history-of-the-oreo-cookie/
https://www.bizjournals.com/chicago/news/2023/02/01/mondelez-sees-oreo-sales-top-4-billion-in-2022.html#:~:text=Mondel%C4%93z
%20said%20worldwide%20sales%20of,topped%20%244%20billion%20in%202022.&text=The%20cookie's%20maker%20Mondel%C
4%93z%20International,another%20strong%20and%20profitable%20quarter.&text=Mondel%C4%93z%20International%20Inc.%20re
ported%20another%20strong%20and%20profitable%20quarter%2C%20inching,up%20shares%20in%20Wednesday%20trading.
 Acknowledgements

https://www.loreal.com/
https://www.loreal-finance.com/eng
Thank You