PLBsearch: Growing with Linkedin

1. LinkedIn’s Revenue Model:

○ Sources of Income:
 ■ Subscription Fees: LinkedIn generates revenue through premium
subscriptions. Users can subscribe to premium plans that offer enhanced
features such as InMail credits, advanced search filters, and insights into
profile views.
■ Advertising: LinkedIn offers advertising solutions to businesses.
Companies can create targeted ads to reach specific audiences based on
demographics, job titles, and interests.
■ Talent Solutions: This segment caters to recruiters and companies
seeking talent. Features include job postings, recruitment tools, and
access to LinkedIn’s extensive professional network.
■ Learning Solutions: LinkedIn Learning provides online courses and
professional development content. Users pay for access to a library of
courses on various topics.
■ Sales Solutions: LinkedIn Sales Navigator assists sales professionals by
providing lead recommendations, insights, and communication tools.
○ Additional Services and Products: Beyond the core revenue streams, LinkedIn
offers data analysis, career advice, and training12.
2. Key Activities in LinkedIn’s Model:
○ User Profiles: Creating and maintaining user profiles is fundamental.
Professionals showcase their skills, expertise, and work history.
○ Networking: Building connections and relationships is crucial. Users connect
with colleagues, industry peers, and potential clients.
○ Job Search and Recruitment: LinkedIn serves as a platform for job seekers and
recruiters. Job postings, job search tools, and recruitment services are vital.
○ Content Sharing: Users share articles, updates, and insights. Engaging content
drives user interaction.
○ Learning and Skill Development: LinkedIn Learning provides courses for skill
enhancement.
○ Advertising and Marketing: Businesses leverage LinkedIn’s advertising
solutions to reach their target audience34.
3. Maximizing Relationship with PLBsearch:
○ Customized Solutions: LinkedIn could tailor its offerings to meet PLBsearch’s
specific needs. For instance, personalized recruitment solutions or targeted
advertising campaigns.
○ Collaboration: LinkedIn and PLBsearch could collaborate on joint webinars,
content, or events to enhance brand visibility.
○ Data Insights: LinkedIn could provide PLBsearch with data insights on talent
trends, industry benchmarks, and competitor analysis.
○ Engagement: Regular communication and engagement with PLBsearch through
LinkedIn’s platform can strengthen the relationship.
4. Strategic Risks to LinkedIn Today:
○ Competition: Rival platforms and job boards pose a threat. LinkedIn must stay
innovative to maintain its edge.
 ○ Privacy Concerns: Data privacy breaches or misuse could erode trust among
users.
○ Monetization Balance: Striking the right balance between user experience and
revenue generation is critical.
○ Economic Downturn: Economic instability affects recruitment and advertising
budgets.
○ Regulatory Changes: Compliance with evolving regulations is essential2.

Q1. Does anything surprise you about LinkedIn’s revenue model? How does LinkedIn
make money?

● LinkedIn’s revenue model: LinkedIn has three main sources of revenue: talent
solutions, marketing solutions, and premium subscriptions1. Talent solutions include
hiring tools and services for recruiters and employers, such as LinkedIn Recruiter, Jobs
Network, and Referrals. Marketing solutions include advertising products and services,
such as Sponsored Content, Sponsored InMail, and Display Ads. Premium subscriptions
include various plans for individual users, such as Premium Career, Premium Business,
and Sales Navigator1.
● Surprising aspects: One surprising aspect of LinkedIn’s revenue model is that it does
not rely heavily on advertising, unlike other social media platforms such as Facebook
and Twitter. Advertising only accounted for 21% of LinkedIn’s revenue in 2015, while
talent solutions accounted for 63% and premium subscriptions accounted for 16%1.
Another surprising aspect is that LinkedIn has a high average revenue per user (ARPU),
compared to other social media platforms. LinkedIn’s ARPU was $8.55 in 2015, while
Facebook’s was $3.73 and Twitter’s was $2.332.

Q2. Which activities on the LinkedIn website are most important on LinkedIn’s model?

● Activities on the LinkedIn website: The most important activities on the LinkedIn
website are those that generate value for both users and the company, such as creating
and updating profiles, building and maintaining connections, sharing and consuming
content, endorsing and recommending skills, applying and posting jobs, sending and
receiving messages, and joining and participating in groups3.
● Importance on LinkedIn’s model: These activities are important on LinkedIn’s model
because they help to increase user engagement, retention, and satisfaction, as well as
to collect valuable data and insights about user behavior, preferences, and needs. These
data and insights can then be used to improve the quality and relevance of LinkedIn’s
products and services, as well as to create new revenue streams and opportunities for
monetization3.

Q3. How could LinkedIn maximize its relationship with PLBsearch?

● LinkedIn’s relationship with PLBsearch: PLBsearch is a niche search firm that

specializes in placing senior-level executives in the life sciences industry. PLBsearch’s
founder, Patricia Bower, attributed her ability to open her recruiting firm to LinkedIn and
 the new model of recruiting it created. PLBsearch used LinkedIn as its primary source of
candidates and clients, as well as its main marketing and branding tool1.
● Ways to maximize the relationship: LinkedIn could maximize its relationship with
PLBsearch by offering more customized and tailored solutions for niche search firms,
such as dedicated account managers, specialized training and support, exclusive access
to premium features and data, and discounted pricing and incentives. LinkedIn could
also leverage PLBsearch’s expertise and network to gain insights and feedback on how
to improve its talent solutions, as well as to generate referrals and testimonials for its
products and services4.

Q4. What are the greatest strategic risks to LinkedIn today?

● Strategic risks to LinkedIn: Some of the greatest strategic risks to LinkedIn today are:
○ Competition: LinkedIn faces competition from other social media platforms, such
as Facebook, Twitter, and Google+, as well as from other online recruitment
platforms, such as Indeed, Monster, and Glassdoor. These competitors could
offer similar or better products and services, attract more users and advertisers,
or innovate faster and more effectively than LinkedIn.
○ Privacy and security: LinkedIn handles a large amount of personal and
professional data from its users, which makes it vulnerable to privacy breaches
and security attacks. These incidents could damage LinkedIn’s reputation, trust,
and credibility, as well as expose it to legal and regulatory liabilities and penalties.
○ Growth and profitability: LinkedIn needs to maintain and increase its user base,
engagement, and revenue, while also managing its costs and expenses, in order
to sustain its growth and profitability. LinkedIn also needs to expand and diversify
its revenue streams, especially in international markets, where it faces more
challenges and uncertainties.

Q1. Does anything surprise you about LinkedIn’s revenue model? How does LinkedIn
make money?

● LinkedIn’s revenue model: LinkedIn has three main sources of revenue: talent
solutions, marketing solutions, and premium subscriptions12.
● Talent solutions: This is the largest segment of LinkedIn’s revenue, accounting for 55%
of its total revenue in 20121. It includes recruiter tools, job postings, and career pages
that help employers and recruiters find and hire talent12.
● Marketing solutions: This segment represents 23% of LinkedIn’s revenue in 20121. It
consists of advertising and sponsored updates that help marketers reach and engage
with professionals on the platform12.
● Premium subscriptions: This segment accounts for 20% of LinkedIn’s revenue in
20121. It offers premium features and services to individual users who want to
enhance their professional brand, network, and career opportunities12.
● Surprising aspects: Some surprising aspects of LinkedIn’s revenue model are:
 ○ The high proportion of B2B revenue: Unlike other social media platforms that
rely mostly on advertising revenue from consumers, LinkedIn generates most of
its revenue from businesses that use its talent solutions12. This indicates that
LinkedIn has a strong value proposition for the B2B market and a competitive
advantage over other job boards and recruiting platforms2.
○ The low dependence on advertising revenue: Despite having over 200 million
members and a large amount of user-generated content, LinkedIn only derives a
small fraction of its revenue from advertising12. This suggests that LinkedIn has a
different approach to monetizing its user base and content than other social
media platforms, and that it does not rely on intrusive or irrelevant ads to
generate revenue2.
○ The diversified revenue streams: LinkedIn has multiple revenue streams that
cater to different segments of its user base and customers12. This enables
LinkedIn to capture more value from its platform and to reduce its exposure to
market fluctuations and competitive pressures2.

Q2. Which activities on the LinkedIn website are most important on LinkedIn’s model?

● Creating and updating profiles: This is the most important activity on the LinkedIn
website, as it forms the basis of LinkedIn’s value proposition for both individuals and
businesses12. By creating and updating their profiles, users showcase their professional
identity, skills, and achievements, and increase their visibility and credibility in the online
marketplace12. This also provides LinkedIn with valuable data and insights that enable it
to offer personalized and relevant services and recommendations to its users and
customers12.
● Building and maintaining connections: This is another important activity on the
LinkedIn website, as it enhances the network effects and the social capital of the
platform12. By building and maintaining connections, users expand their professional
network, access more opportunities and information, and leverage the power of referrals
and endorsements12. This also increases the engagement and retention of users and
customers on the platform, and creates more value for LinkedIn’s talent solutions and
marketing solutions12.
● Sharing and consuming content: This is a relatively new but increasingly important
activity on the LinkedIn website, as it strengthens the community and the content of the
platform12. By sharing and consuming content, users generate and exchange
knowledge, insights, and opinions, and establish their thought leadership and influence
in their fields12. This also creates more opportunities for LinkedIn to deliver targeted and
relevant ads and sponsored updates to its users and customers, and to increase its
revenue from its marketing solutions12.

Q3. How could LinkedIn maximize its relationship with PLBsearch?

● PLBsearch is a niche search firm that specializes in placing senior-level executives in

the consumer packaged goods industry12. It is one of LinkedIn’s customers that uses its
talent solutions to find and recruit talent12.
 ● LinkedIn could maximize its relationship with PLBsearch by:
○ Providing more value-added services and features: LinkedIn could offer more
value-added services and features to PLBsearch, such as advanced search
filters, candidate assessment tools, talent pipeline management tools, and
analytics and insights that could help PLBsearch find and hire the best talent
for its clients more efficiently and effectively12.
○ Creating more opportunities for cross-selling and up-selling: LinkedIn could
create more opportunities for cross-selling and up-selling to PLBsearch, such as
job postings, career pages, sponsored updates, and premium subscriptions
that could help PLBsearch increase its brand awareness, reach, and
engagement with potential candidates and clients12.
○ Building a long-term and loyal partnership: LinkedIn could build a long-term
and loyal partnership with PLBsearch, by understanding its needs and
preferences, providing excellent customer service and support, soliciting
feedback and suggestions, and offering incentives and rewards that could
enhance PLBsearch’s satisfaction and loyalty with LinkedIn’s platform and
solutions12.

Q4. What are the greatest strategic risks to LinkedIn today?

● Some of the greatest strategic risks to LinkedIn today are:

○ Competition: LinkedIn faces competition from other social media platforms, such
as Facebook, Twitter, and Google+, that also offer professional networking and
content sharing features, and that could attract and retain users and customers
away from LinkedIn12. LinkedIn also faces competition from other job boards and
recruiting platforms, such as Monster, Indeed, and Glassdoor, that also offer
talent solutions and job opportunities, and that could erode LinkedIn’s market
share and revenue12.
○ Privacy and security: LinkedIn faces privacy and security challenges, such as
data breaches, cyberattacks, and identity theft, that could compromise the
personal and professional data of its users and customers, and that could
damage its reputation and trustworthiness12. LinkedIn also faces privacy and
security regulations, such as the General Data Protection Regulation (GDPR),
that could limit its ability to collect and use data, and that could increase its
compliance costs and risks12.
○ Innovation and differentiation: LinkedIn faces innovation and differentiation
challenges, such as changing user and customer needs and expectations,
technological disruptions and advancements, and emerging trends and
opportunities, that could require it to constantly innovate and differentiate its
platform and solutions, and that could affect its competitive advantage and
growth potential12.
TripAdvisor's Challenges in 2010

TripAdvisor, a leading travel website, was facing several challenges in 2010:

The case study provides a comprehensive overview of TripAdvisor's history, operations,

challenges, and growth initiatives, particularly focusing on vacation rentals, flights, and
international expansion, especially in China. Here's a breakdown of key points:

Company Background: Founded in 2000 out of frustration with the lack of unbiased travel
information online, TripAdvisor quickly grew into the largest travel site globally. It was acquired
by InterActive Corporation (IAC) in 2004 and spun out as part of Expedia, Inc. in 2005.

Growth and Culture: TripAdvisor experienced rapid growth, boasting millions of reviews and
opinions across various travel categories by 2010. The company nurtured an entrepreneurial
culture with a focus on metrics and user experience.

Core Business: TripAdvisor's core business involved providing user-generated reviews and
ratings for hotels, restaurants, and attractions. It monetized through text links, display ads, and
subscription fees for business listings.

Monetization: The company generated revenue primarily through clicks on text links to OTAs,
display advertising, and subscription fees from businesses for enhanced listings.

Challenges and Initiatives:

● Vacation Rental Market: TripAdvisor entered the vacation rental market through
acquisitions of Flipkey.com and Holiday Lettings, aiming to capitalize on the fragmented
market.
● Flight Metasearch Service: TripAdvisor launched a flight metasearch service, facing
increased competition after Google's acquisition of ITA Software.
● International Expansion, Especially in China: TripAdvisor expanded globally but faced
challenges in international markets like China, where it needed to adapt to local
preferences and competition.
● China Market Entry: TripAdvisor launched in China as DaoDao in 2009. Challenges
included local competition, low online travel booking rates, and the need for localized
strategies and talent acquisition.

Marketing and Monetization Strategies: TripAdvisor employed search marketing, public

relations, and social media to build traffic. It faced challenges in providing value to businesses
with lower rankings and sought to diversify revenue streams beyond hotels.

Future Directions: TripAdvisor aimed to broaden its portfolio beyond hotels and restaurants,
exploring opportunities in local activities and services. It sought to replicate its success in global
markets and address challenges in international expansion and market penetration.
Vacation Rentals:

● TA has made significant strides in the vacation rental market, acquiring companies like
Flipkey.com and Holiday Lettings to amass a substantial inventory.
● However, the market is highly fragmented, with HomeAway emerging as a dominant
player.
● Challenges include gaining a foothold in a competitive market, building trust among both
property owners and renters, and addressing negative user reviews.
● TA must decide whether to pursue aggressive expansion similar to HomeAway or adopt
a more deliberate approach to build quality listings and user trust.

Flights:

● TA's entry into the flights business aims to capture users earlier in their travel planning
process and compete with metasearch engines like Kayak.
● While the flights market presents significant opportunities, the impending acquisition of
ITA by Google poses a formidable challenge.
● TA must decide whether to concede the flights market to Google and Kayak or
aggressively pursue it to maintain competitiveness and feed users to its core business.

International Expansion, Especially in China:

● TA's expansion into China, through DaoDao, presents promising opportunities in a

rapidly growing market.
● Challenges include navigating the complexities of the Chinese market, building brand
awareness, and competing with established local players like Ctrip.
● TA needs to find ways to operate as a local startup, educate the market, and attract local
talent with an entrepreneurial spirit.

Overall, the case highlights TripAdvisor's evolution from a user-generated review platform to a
global travel giant, as well as the strategic challenges it faced in diversifying its offerings and
expanding into new markets.

1. Expanding into new markets:

China: While TripAdvisor (TA) had established a presence in China with its "DaoDao" website, it
faced fierce competition from local players like Ctrip. Additionally, cultural differences and low
online travel booking penetration were hurdles in the market.
International Expansion: TA aimed to replicate its success in other international markets but
needed to adapt its strategy to local contexts and overcome competition.

2. Diversifying Revenue Streams:

Business Listings: TA was trying to monetize its listings beyond hotels, but this was proving
difficult, especially for lower-ranked businesses on the platform.
Expanding beyond Hotels: TA had ventured into vacation rentals and flight search, but these
were new ventures with uncertain success.

3. Maintaining User Experience:

Balancing advertising with user experience: TA relied heavily on advertising for revenue, but
needed to ensure ads didn't disrupt user experience.
Ensuring review authenticity: TA faced concerns about the potential for fake and misleading
reviews on its platform.

4. Building Local Teams:

Finding talent with local knowledge and entrepreneurial spirit: TA needed to hire staff in
international markets who could adapt to local needs while staying aligned with the company's
overall approach.

Key Decision Points:

● Prioritizing growth initiatives: Should TA focus on China, other international markets, or

its new ventures like vacation rentals and flights?
● Balancing monetization with user experience: How can TA generate revenue from its
platform without negatively impacting user experience?
● Ensuring the authenticity of reviews: What measures can TA take to ensure the reviews
on its platform are reliable and trustworthy?
● Building a successful team in China: How can TA find and retain the right talent to
navigate the Chinese market effectively?

Overall, TripAdvisor needed to carefully consider these challenges and make strategic decisions
to maintain its position as a leading travel website and continue its growth trajectory.

Vacation Rentals:

● Market Fragmentation: HomeAway held a significant lead with brand recognition and
listings.
● Building Trust: TripAdvisor was known for hotels, not vacation rentals, and needed to
convince both owners and renters to trust its platform.
● Marketing Strategy: Decide between focused brand building like HomeAway or staying
with search engine marketing (SEM).
● Brand Consolidation: Consider merging individual brands like Holiday Lettings under a
single banner.
Flights:

● Competition: Established players like Kayak and newly empowered OTAs with
eliminated booking fees posed a challenge.
● Google's Threat: Google's acquisition of ITA, a powerful flight information provider, could
disrupt the market.
● Profitability: While still profitable, the changing landscape of booking fees and
competition made long-term success less certain.

Key Decision Points:

● Prioritizing growth initiatives: Allocate resources and focus on either China, other
international markets, vacation rentals, or flights.

Vacation rental strategy:

● Compete head-on with HomeAway or build a unique value proposition?
● Invest in brand advertising or stay with SEM?
● Consolidate individual vacation rental brands or maintain separate identities?

Flights strategy:
● Compete aggressively with Kayak and OTAs, or concede the market to Google and
focus on core business?

Overall, TripAdvisor faced crucial decisions in 2010. Their success in the future hinged on
navigating a highly competitive landscape, building trust in new markets and ventures, and
strategically allocating resources to maximize market share and profitability.

Compete head-on with HomeAway or build a unique value proposition?

- TA should consider a balanced approach. While competing head-on with HomeAway might
seem daunting given their market dominance, TA can focus on building a unique value
proposition that addresses consumer concerns such as quality, trust, and ease of booking. This
could involve leveraging TA's existing user base and reputation for reliability to differentiate itself
in the vacation rental market.

Invest in brand advertising or stay with SEM?

- TA should evaluate the effectiveness of both brand advertising and SEM in reaching its target
audience and driving conversions. Brand advertising could help raise awareness of TA's
vacation rental offerings and build credibility in the market, especially considering the low
category awareness. However, SEM has been successful for TA in the hotel business, so
maintaining a presence in search engine marketing could also be beneficial. Ultimately, TA may
benefit from a combination of both strategies.

Consolidate individual vacation rental brands or maintain separate identities?

- TA should assess the advantages and disadvantages of each approach. Consolidating
individual vacation rental brands under a single umbrella could help create a strong, unified
presence in the market and streamline marketing efforts. However, maintaining separate
identities might allow TA to cater to different segments of the vacation rental market and
preserve the unique characteristics of each brand. The decision should be based on factors
such as brand recognition, target audience, and operational efficiency.

Flights strategy:
- TA needs to carefully weigh the competitive landscape and its capabilities in the flights market.
Competing aggressively with Kayak and OTAs could be challenging, especially considering the
impending acquisition of ITA by Google. Instead, TA may need to focus on its core business
strengths and consider collaborating with other industry players to enhance its flights offering.
Conceding the market to Google could allow TA to allocate resources more effectively to other
growth initiatives, such as vacation rentals and international expansion. Ultimately, the decision
should align with TA's long-term strategic goals and ability to differentiate itself in the market.

TripAdvisor's Decision Points:**

Vacation Rentals:

Compete head-on with HomeAway or build a unique value proposition?

Both options have pros and cons:

Competing head-on:
● Pros: Gaining market share quickly, potentially catching up to HomeAway.
● Cons: Requires significant resources, risks being overshadowed by HomeAway's
established presence.
Building a unique value proposition:
● Pros: Differentiate itself from HomeAway, potentially attract a specific customer segment.
● Cons: Takes more time to establish, may be slower to gain traction.
Ultimately, the decision depends on TripAdvisor's resources, risk tolerance, and desired brand
positioning.

Invest in brand advertising or stay with SEM?

This depends on the chosen strategy:

Competing head-on: Brand advertising is crucial for rapid brand awareness.

Building a unique value proposition: SEM might be sufficient initially, with targeted campaigns to
reach specific customer segments.

Consolidate individual vacation rental brands or maintain separate identities?

Consolidation has benefits:

 ● Pros: Stronger brand recognition, more efficient marketing efforts.
● Cons: May alienate loyal users of established individual brands.
This requires careful consideration of brand equity and potential customer impact.

Flights Strategy:

Compete aggressively with Kayak and OTAs, or concede the market to Google and focus on
core business?

This depends on several factors:

● TripAdvisor's resources and strategic priorities: If flights are not seen as core, focusing
elsewhere might be wiser.
● Potential for differentiation: Can TripAdvisor offer a unique value proposition in the flights
market?
● Google's dominance: Accepting Google's potential control might be a strategic retreat,
focusing resources on other areas.
● A thorough analysis of these factors is crucial before making a decision.

Additional Points:

● Balancing monetization with user experience: Implement targeted advertising that

doesn't disrupt user flow or search results.
● Ensuring the authenticity of reviews: Implement systems to detect and remove fake
reviews, encourage user verification, and incentivize genuine reviews.
● Building a successful team in China: Recruit Chinese talent with local market knowledge
and cultural sensitivity, provide competitive compensation and opportunities for growth,
and foster a collaborative and supportive work environment.

Ombre, Tie-Dye, Splat Hair: Trends or Fads? “Pull” and “Push”

Social Media Strategies at L’Oréal Paris

The case of "Ombre, Tie-Dye, Splat Hair: Trends or Fads? 'Pull' and 'Push' Social Media
Strategies at L’Oréal Paris." This case explores L'Oréal Paris's innovative approach to social
media marketing, focusing on listening to consumers, developing products, and effectively
positioning them in the market.

## Summary of the Case:

L'Oréal Paris, a renowned cosmetics and beauty brand, sought to leverage social media to gain
insights into consumer preferences and trends. The company partnered with Google to track
emerging styles and determine which hair color trends would endure. Specifically, they focused
on three popular trends: ombre, tie-dye, and splat hair.

1. **Listening to Consumers:**
- L'Oréal Paris used social media platforms to monitor conversations, analyze user-generated
content (UGC), and understand consumer needs.
- By actively listening, they identified emerging hair color trends and assessed their potential
longevity.

2. **Product Development:**
- Based on the insights gathered, L'Oréal Paris developed a new line of hair color products
that catered to these trends.
- They aimed to create value for consumers by addressing their desires for trendy and
expressive hair colors.

3. **Positioning and Launch:**

- Social media played a crucial role in deciding how to position, name, and launch the new
product line.
- L'Oréal Paris used UGC and influencers to create buzz and generate excitement.
- They strategically timed the product launch to coincide with peak interest in these trends.

## Problems and Issues:

1. **Identifying Enduring Trends:**
- The challenge was to differentiate between passing fads and long-lasting trends.
- L'Oréal Paris needed to ensure that the chosen trends would resonate with consumers
beyond a fleeting moment.

2. **Effective Social Media Integration:**

- Integrating social media insights seamlessly into the product development process required
careful planning.
- Balancing data-driven decisions with creative intuition was essential.

3. **Consumer Engagement and Advocacy:**

- How could L'Oréal Paris engage consumers effectively through social media?
- Leveraging UGC and creating a community around the new products were critical.

## Solutions and Strategies:

1. **Market Learning via Social Media:**
- L'Oréal Paris collaborated with Google and YouTube to identify trends.
- They used big data analytics to track conversations, hashtags, and visual content related to
hair color trends.
2. **New Product Development:**
- The company used social media insights to guide product development.
- They created hair color products aligned with the identified trends (ombre, tie-dye, splat).

3. **UGC and Advocacy Marketing:**

- L'Oréal Paris encouraged consumers to share their hair color transformations using the new
products.
- Influencers and brand advocates played a crucial role in spreading the word.

4. **Community Building:**
- The brand fostered a community of trendsetters and enthusiasts.
- Social media platforms became spaces for dialogue, inspiration, and sharing.

## Consideration of User-Generated Content (UGC):

- UGC played a pivotal role in creating authenticity and trust.
- Consumers' real-life experiences and testimonials showcased the effectiveness of the
products.
- L'Oréal Paris encouraged UGC through campaigns, contests, and user stories.

The case study "Ombre, Tie-Dye, Splat Hair: Trends or Fads? “Pull” and “Push” Social Media
Strategies at L’Oréal Paris" focuses on an innovative social media strategy by L'Oréal Paris to
"listen" to consumers, then develop a product to meet consumer needs and market it¹⁵¹⁶. Here's
a summary of the case, problems, solutions, and strategies:

**Summary of the Case:**

L'Oréal Paris partnered with Google to track emerging styles and determine which (if any) would
endure. Then it leveraged social media when deciding how to position, name, and launch the
product¹⁵¹⁶. The case outlines a five-stage model (Interact-Engage-Propose-Act-Realize, IEPAR)
of utilizing social media to co-create with consumers¹⁵.

**Problems and Issues:**

The main challenge was to identify enduring trends versus fads and to harness social media
buzz to uncover a consumer need¹⁵¹⁶.

**Solutions and Strategies:**

L'Oréal Paris used social media to foster market learning, with Google and YouTube playing a
significant role in identifying trends¹⁵¹⁶. They implemented a new product development process
using social media and focused on marketing implementation¹⁵¹⁶.

**User Generated Content (UGC) in the Marketing Strategy:**

UGC is a powerful marketing tool because it helps to build trust and credibility with your
audience¹. It refers to any content created by consumers, such as social media posts, reviews,
and videos, that promotes a brand or product¹. Leveraging UGC in your marketing strategy can
help increase brand awareness, build trust with customers, and drive sales¹.
**Holistic View of the Business in Context to Social Media Marketing:**
A holistic viewpoint helps the firm determine the platforms used to publish the campaign don't
reach their target audience, which puts the need for improvement with the social media
managers¹⁹[^20^]²¹²².

**Integrating the Social Media Plan Effectively:**

To integrate social media into your marketing strategy effectively, you need to set SMART
Goals, understand your audience, audit your social media profiles, create a social media
content plan, and have a process in place to measure performance¹³¹¹¹²¹⁴.

**Creating Added Value for Consumers on Social Media:**

To create added value for consumers on social media, brands can share content from other
businesses and people who are interesting and relevant to your followers, build trust, and
increase your value[^10^]. Brands can also incorporate user-generated content (UGC) and
influencer partnerships into their strategies⁷⁹.

Q1. Who could help in determining if these were trends or fads? Should the team talk to
hairdressers? Regular people? Journalists or opinion leaders in the fashion world?
Crowdsourcing?

Determining Trends vs. Fads:

Hairdressers and Stylists:
● Role: Hair professionals are on the front lines of styling and color trends. They interact
with clients daily and witness firsthand which trends are popular and sustainable.
● Insights: Hairdressers can provide insights into client preferences, the longevity of
specific styles, and whether clients continue to request certain trends over time.
Regular Consumers (General Public):
● Role: Everyday consumers play a crucial role in trend adoption. Their choices drive
market demand.
● Insights: Regular people can reveal whether they view these trends as part of their
personal style or as fleeting experiments. Long-lasting trends resonate with a broader
audience beyond fashion enthusiasts.
Journalists and Fashion Experts:
● Role: Journalists and opinion leaders in the fashion world have their fingers on the pulse
of industry trends.
● Insights: Their analysis and coverage can shed light on whether these hair color trends
are gaining traction in the broader fashion landscape. They can also provide historical
context by comparing current trends to past ones.
Crowdsourcing and Social Media:
● Role: Crowdsourcing involves tapping into collective intelligence. Social media platforms
allow direct interaction with a large audience.

Insights:
 ● UGC (User-Generated Content): Encourage consumers to share photos of their hair
color transformations using these trends. Monitor hashtags, comments, and
engagement.
● Polls and Surveys: Conduct polls on social media to gauge interest and longevity.
● Influencers and Trendsetters: Engage with influencers who embody these trends. Their
followers’ reactions can provide valuable feedback.

Crowdsourcing as a Strategy:
Benefits:
● Diverse Perspectives: Crowdsourcing gathers insights from a wide range of people,
including experts, enthusiasts, and casual observers.
● Real-Time Feedback: Social media allows real-time interaction, enabling rapid
adjustments based on consumer responses.
● Community Building: Involving consumers fosters brand loyalty and creates a sense of
ownership.
Implementation:
● UGC Campaigns: Encourage users to share their hair color experiences using specific
hashtags (e.g., #OmbreMagic, #TieDyeTrend).
● Contests and Challenges: Run contests for the most creative use of these trends.
● Feedback Loops: Respond to comments, ask questions, and listen to what consumers
say.
Conclusion:
In summary, a combination of insights from hairdressers, regular consumers, fashion experts,
and crowdsourcing via social media can help determine whether these hair color trends are
here to stay or fleeting fads. By actively engaging with the community, L’Oréal Paris can make
informed decisions and create products that resonate with their audience.

In the case of "Ombre, Tie-Dye, Splat Hair: Trends or Fads? “Pull” and “Push” Social Media
Strategies at L’Oréal Paris", determining whether these were trends or fads would require a
multi-faceted approach. Here's how different groups could contribute:

1. **Hairdressers**: Hairdressers are at the forefront of the industry and have firsthand
knowledge of what their clients are asking for. They can provide valuable insights into emerging
trends and whether they are likely to last¹²³⁴.

2. **Regular People**: Regular people, or the general public, are the consumers of these
products. Their preferences and buying behaviors can indicate whether something is a trend
(long-lasting) or a fad (short-lived). Regular people can be engaged through surveys, social
media polls, and other forms of market research⁶⁸.

3. **Journalists or Opinion Leaders in the Fashion World**: Fashion journalists and opinion
leaders have a broad view of the industry and can spot patterns and trends. They can provide
expert opinions on whether something is a trend or a fad¹²¹³¹⁴.
4. **Crowdsourcing**: Crowdsourcing is a powerful tool for gathering information and insights
from a large group of people. It can be used to quickly and cost-effectively collect data for
market research. Brands can use crowdsourcing to survey their target audiences and gather
feedback on products or services⁹[^10^]¹¹.

In conclusion, a combination of these methods would likely provide the most accurate and
comprehensive understanding of whether these were trends or fads. It's important to note that
trends and fads in the fashion industry can be highly subjective and can vary greatly depending
on the specific market and demographic being considered. Therefore, a diverse range of
sources and perspectives should be considered to make an informed decision.

Q2. What source of information were available on the web that could help? Could Google
search provide insights and if so how?

Determine hair color trends and how Google search can provide valuable insights:

1. **L'Oréal Paris Blogs and Websites**:

- L'Oréal Paris itself publishes blogs and articles on hair color trends, product launches, and
expert insights. These official sources provide accurate and up-to-date information.

2. **Beauty Industry Websites and Magazines**:

- Websites like **Byrdie**, **InStyle**, and **Think with Google** often feature articles on
beauty and hair trends. They collaborate with experts and analyze industry data to identify
emerging trends.

3. **Google Trends**:
- **Google Trends** is a powerful tool that provides insights into search queries over time. It
reveals which hair color terms are trending, their popularity, and regional variations.
- By analyzing search volume, seasonality, and geographical interest, Google Trends helps
identify rising trends and consumer preferences.

4. **Social Media Platforms**:

- Social media platforms like **Instagram**, **Pinterest**, and **YouTube** are treasure troves
of hair color inspiration.
- Influencers, hairstylists, and beauty enthusiasts share their experiences, tutorials, and trend
predictions.

5. **Fashion and Beauty Forums**:

- Online forums like **Reddit** have dedicated communities discussing beauty and hair topics.
- Users share personal experiences, product reviews, and trend observations.

6. **Academic Research and Reports**:

- Some academic studies explore cultural shifts, consumer behavior, and beauty trends.
 - While less accessible to the general public, these studies provide valuable insights.

### Google Search Insights:

- **Google Trends**:
- Google Trends allows users to explore search interest over time and across regions.
- By entering relevant keywords (e.g., "hair color trends 2023"), one can analyze search
patterns.
- It provides data on rising queries, related topics, and regional interest.
- For example, searching for "hair color trends 2023" on Google Trends would reveal which
colors are gaining popularity and where.

- **Google Search Queries**:

- Regular Google searches can also yield insights.
- By searching for specific hair color terms (e.g., "strawberry brown balayage," "mushroom
brunette"), one can discover recent articles, tutorials, and discussions.

- **Google News and Articles**:

- Google aggregates news articles, blog posts, and features related to hair color trends.
- Users can find recent updates, expert opinions, and industry news.

In summary, Google search, along with official brand sources, industry websites, and social
media, provides a comprehensive view of hair color trends. By analyzing search data and
staying informed, brands like L'Oréal Paris can make informed decisions and create products
aligned with consumer preferences.

There are numerous sources of information available on the web that could help in
understanding trends or fads, especially in the context of the case study "Ombre, Tie-Dye, Splat
Hair: Trends or Fads? “Pull” and “Push” Social Media Strategies at L’Oréal Paris". Here are a
few:

1. **Social Media Platforms**: Websites like Twitter, Instagram, and Facebook are great places
to observe what's trending among consumers. Hashtags, trending topics, and the popularity of
certain posts can provide insights into what's currently in vogue.

2. **Google Trends**: This is a tool that shows how often a particular search term is entered
relative to the total search volume across various regions of the world, and in various
languages. It can provide insights into whether a certain trend is gaining or losing popularity
over time.

3. **Fashion and Beauty Blogs/Websites**: Websites like Vogue, Elle, and others often have
articles and features on current trends in fashion and beauty. They can provide valuable insights
into what's currently popular.
4. **Online Retail Websites**: Websites like Amazon, Flipkart, and others can provide insights
into what products are selling well, which can be an indicator of current trends.

5. **Forums and Discussion Boards**: Websites like Reddit have numerous communities where
people discuss various topics, including fashion and beauty trends. These can provide
grassroots-level insights into what real people are interested in.

Q3. How should they go about finding the necessary information? How much money this
Require?

how L’Oréal Paris can find the necessary information for their social media marketing strategy
related to hair color trends. Here are some steps they can take:

Market Research and Data Analysis:

Cost: Moderate
● L’Oréal Paris should invest in market research to understand consumer preferences,
behavior, and emerging trends.
● They can collaborate with research firms or conduct surveys to gather data.
● Analyzing existing sales data, customer feedback, and social media interactions can
provide valuable insights.
Social Media Listening Tools:
● Cost: Varies (subscription-based tools)
● L’Oréal Paris can use social media listening tools like Brandwatch, Sprout Social, or
Hootsuite.
● These tools track brand mentions, sentiment, and trending topics across platforms.
● They help identify which hair color trends are gaining traction and how consumers
perceive them.
Collaboration with Influencers and Experts:
● Cost: Varies (depends on influencer fees)
● L’Oréal Paris can partner with beauty influencers, hairstylists, and fashion experts.
● These collaborations provide firsthand insights into trends and consumer preferences.
● Influencers can create content, share experiences, and engage with their followers.

Google Search and Trends:

Cost: Free
● L’Oréal Paris can use Google Trends to analyze search queries related to hair color
trends.
● By monitoring search volume and regional interest, they can identify rising trends.
● Regular Google searches also provide access to articles, blog posts, and news.
UGC Campaigns and Crowdsourcing:
● Cost: Moderate (depends on campaign scale)
● Encourage consumers to share their hair color transformations using specific hashtags.
● Run UGC contests, polls, and challenges on social media.
● Crowdsourcing provides real-time feedback and builds community.
Collaboration with Hairdressers and Stylists:
● Cost: Varies (depends on consultation fees)
● Engage with hairstylists and salon professionals.
● They can share insights on client preferences, popular requests, and emerging trends.
L’Oréal Paris can organize focus groups or workshops.
Budget Allocation:
● Allocate a budget for research, tools, influencer collaborations, and campaigns.
● Prioritize based on the impact and feasibility of each approach.

In summary, L’Oréal Paris should combine data-driven research, social media insights,
influencer partnerships, and consumer engagement to determine hair color trends. While some
methods are cost-effective (like Google search), others require investment (such as influencer
collaborations). The overall budget will depend on the scale and depth of their strategy.

Finding the necessary information for the case study "Ombre, Tie-Dye, Splat Hair: Trends or
Fads? “Pull” and “Push” Social Media Strategies at L’Oréal Paris" would involve a combination
of primary and secondary research methods¹²:

1. **Primary Research**: This could involve conducting interviews with industry experts,
hairdressers, and consumers. Surveys could also be used to gather data from a larger
audience. Additionally, they could use social media platforms to observe discussions and trends
related to hair color styles¹.

2. **Secondary Research**: This would involve analyzing existing data and reports on hair color
trends. Google Trends could be a valuable tool here, as it shows how often a particular search
term is entered relative to the total search volume across various regions of the world¹.

As for the cost, it can vary widely depending on the scope of the research and the methods
used. Costs could include personnel time (for conducting interviews and analyzing data),
technology (software for analyzing data), and possible incentives for survey participants. It's
also important to note that while some information can be gathered relatively inexpensively,
more in-depth research methods (like personal interviews) can add to the cost³⁴⁵.

Q4. How could L’oreal Paris create the most added value for the consumer?

To create the most added value for consumers, L’Oréal Paris can implement several strategies:

Quality Products and Innovation:

● Develop high-quality hair color products that deliver on their promises.
● Invest in research and development to stay ahead of trends and introduce innovative
formulations.
Customization and Personalization:
● Offer a range of shades and tones to cater to diverse consumer preferences.
 ● Provide personalized recommendations based on skin tone, hair type, and lifestyle.
Education and Tutorials:
● Empower consumers with knowledge about hair care, color application, and
maintenance.
● Create video tutorials, blog posts, and social media content to guide users.
Transparency and Authenticity:
● Be transparent about ingredients, sourcing, and sustainability efforts.
● Authenticity builds trust and adds value to the brand.
Community Building and Engagement:
● Foster a community of hair enthusiasts.
● Encourage consumers to share their experiences, tips, and transformations.
● Host events, workshops, and online forums.
Reward Loyalty:
● Implement a loyalty program with exclusive offers, early access, and personalized
discounts.
● Show appreciation for repeat customers.
Social Responsibility and Sustainability:
● Consumers value brands that contribute positively to society and the environment.
● L’Oréal Paris can support social causes and promote eco-friendly practices.
User-Generated Content (UGC):
● Encourage consumers to share their before-and-after photos using L’Oréal Paris
products.
● Showcase UGC on social media and the brand’s website.
Customer Service and Support:
● Provide excellent customer service through multiple channels.
● Address queries, concerns, and feedback promptly.
Emotional Connection and Storytelling:
● Share stories about real people and their hair journeys.
● Connect on an emotional level by highlighting confidence, self-expression, and
empowerment.

L’Oréal Paris can create added value for the consumer in several ways:

● Innovation: L’Oréal Paris invests heavily in Research & Innovation, with more than €1.1
billion invested and 561 patents filed in 2022. By developing high-performance formulas
that are safe and sustainable, L’Oréal Paris can meet consumers’ beauty needs and
contribute to beauty in all its forms.
● Understanding Consumer Needs: L’Oréal Paris uses social media and other tools to
understand emerging styles and consumer needs. This allows them to develop products
that consumers want and need.
● Sustainability: Consumers are increasingly concerned about the environmental impact of
the products they use. L’Oréal Paris is committed to sustainability and has implemented
measures to reduce the environmental impact of its products.
 ● Training and Development: L’Oréal Paris invests in training and career development for
its employees. This not only enhances the skills of its workforce but also improves the
quality of its products and services.
● Personalization: L’Oréal Paris could offer personalized products or services based on
individual consumer needs. This could involve personalized skincare products or beauty
recommendations based on individual skin types or preferences.
● Engagement: Engaging with consumers on social media and other platforms can help to
build a strong brand community. L’Oréal Paris could use these platforms to share useful
content, respond to customer inquiries, and gather feedback.
● Quality Products: By offering high-quality products that deliver on their promises, L’Oréal
Paris can build trust with consumers and encourage repeat purchases.

Q5. What marketing and social media plan they should adopt for the trends they decided
to Target?

To effectively market the hair color trends (such as ombre, tie-dye, and splat hair), L’Oréal Paris
should adopt a comprehensive marketing and social media plan. Here are some strategies they
can implement:

Content Creation and Sharing:

● Before-and-After Posts: Showcase transformations using the new hair color products.
Share side-by-side photos of clients’ hair before and after the treatment.
● Video Tutorials: Create short videos demonstrating how to achieve the trendy looks at
home.
● Behind-the-Scenes: Share glimpses of the product development process, photoshoots,
and team members working on the trends.
Social Media Platforms:
● Instagram: Post visually appealing images and videos. Use Instagram Stories for
real-time updates.
● Pinterest: Create trend boards with pins related to hair color inspiration, styling tips, and
product recommendations.
● YouTube: Upload detailed tutorials and product reviews.
Influencer Collaborations:
● Partner with beauty influencers and hairstylists who align with the brand. They can
create content featuring the trends and share their experiences.
● Influencers can reach a wider audience and provide authentic testimonials.
UGC Campaigns:
● Encourage users to share their hair color transformations using L’Oréal Paris products.
● Create branded hashtags (e.g., #LorealTrendyColors) and feature UGC on social media.
Educational Content:
● Blog Posts: Write articles about each trend, including styling tips, maintenance, and
product recommendations.
● Webinars: Host live webinars with hairstylists discussing the trends and answering
viewers’ questions.
Collaborate with Salons and Stylists:
● Provide training sessions for hairstylists on the latest trends and product usage.
● Salons can become ambassadors for L’Oréal Paris products.
Paid Advertising:
● Facebook Ads: Target users interested in hair color trends. Use carousel ads to
showcase different looks.
● Google Ads: Bid on relevant keywords related to hair color trends.
Engagement and Community Building:
● Respond to comments, messages, and inquiries promptly.
● Host virtual events (e.g., live Q&A sessions) to engage with the audience.
Measurement and Optimization:
● Track key metrics (engagement rate, reach, conversions) using social media analytics
tools.
● Optimize the strategy based on performance data.

For the case study “Ombre, Tie-Dye, Splat Hair: Trends or Fads? “Pull” and “Push” Social Media
Strategies at L’Oréal Paris”, the marketing and social media plan should be focused on the
identified trends. Here’s a suggested approach:

● Identify the Target Audience: Understand who is most likely to be interested in the trend.
This could be based on age, gender, location, or other demographic factors.
● Create Engaging Content: Develop content that highlights the trend. This could be blog
posts, videos, or social media posts that provide information about the trend, show how
to use products related to the trend, or share customer testimonials1.
● Leverage Influencers: Collaborate with influencers who have a strong following among
the target audience. They can help to promote the trend and associated products.
● Use Social Media Advertising: Use targeted ads on social media platforms to reach the
target audience. These ads can be tailored to the interests and behaviors of the target
audience.
● Monitor and Adjust: Keep track of the performance of the marketing and social media
activities. Use this information to adjust the strategy as needed.
● Engage with the Audience: Respond to comments and messages, ask for feedback, and
encourage user-generated content.