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CASE STUDY: How L’Oreal has maintained its leader position in beauty and cosmetics industry since more than a century?

09/03/2016

Case Study

What you will find in this case study?

1) About L’Oreal

2) Evolution of L’Oreal

3) Content Strategy

4) Social media strategy

5) Social media Campaign

6) Stories that helped L’Oreal to become bigger

Introduction

The L’Oréal Group is the world’s largest cosmetics and Beauty Company, with an annual turnover of €22.53 billion (Euro) in 2014, a presence in 130 countries, 32 international brands, 78,600 employees from 156 different nations and 19 Research & Innovation centres with brands such as Garnier, Maybelline New York and the Body Shop.

loreal11

Of course, the beauty category is a natural fit for content marketing. Women represent the largest demographic on blogging platforms and social media, giving brands the opportunity to educate and entertain consumers in an authentic way.

Evolution of L’Oréal

The company started with a new development of a hair dye in 1909 by a young chemist Eugene Schueller that developed into a multinational company, having made resources worth over €28.219 billion by the end of 2013. L’Oréal currently manufactures 500 brands and thousands of individual products in all sectors of beauty and fragrances.

L’Oréal has 19 worldwide research and development centers in France, U.S, Japan, China and India and more in other parts of the globe. Besides the involvement in cosmetics and pharmaceutical activities, L’Oréal also has shares in the film company Paravision. Later On 17 March 2006, L’Oréal purchased the cosmetic company The Body Shop for £562 million (British Pound), followed by the purchase of 3 Suisse’s in March 2008.

How L’Oréal increased its reach among various audience lines?

L’Oreal implemented various strategies to reach to most of its target audience. Using content marketing and social media marketing, L’Oreal gathered huge response from the customer part.

Content Strategy

The game has changed recently. Topic of beauty been Googled over 4 billion times a year, thus knowing that consumers highly relies on social media influencers and mobile apps to make purchase decisions, L’Oréal utilized this with targeted and interactive content in lieu of one-way, aspirational messaging.

With its unique strategy, beautiful editorial design and category capability in place, L’Oréal has effectively built a full-scale online beauty magazine from scratch, engaging fans with content that is as fresh as the faces it features.

Social media strategy

As a parent brand, L’Oréal has huge audience over social platforms with more than 22.5 million likes on Facebook that on an average generates more than a thousand likes per post. It has 600K followers on Twitter, 51K subscribers on YouTube while its LinkedIn page recently surpassed 815k followers. But the brand took things one step ahead in 2011 by launching Makeup.com, a stunningly designed web portal to deliver high quality beauty content daily. The site combines DIYs with trend reporting, beauty news, expert tips and video content in a high end design with a tone that feels more “girlfriend to girlfriend” than brand to buyer.

makeup

Being present where your customers are is a crucial component while using social media for business – even if you’re not very much interested in the medium, it’s increasingly likely that your customers are. Top leading brands like L’Oréal identify the importance of being where the discussion is and plays an active role in it.

Social media platform is really important for the beauty and cosmetics industry, and L’Oréal very beautifully understands this. “All across the globe, L’Oréal is working with an objective to build 100% love for the brand, and no doubt social media is crucial to drive engagement and affinity for the brands that sit under the vast L’Oréal group.”

Social media campaign

L’Oréal Paris ran a campaign to coincide with the brand’s new Advanced Hair care line and asked the users over social media to share their dominant hair moments on all the social media platforms including Facebook, Instagram and Twitter with a specified hashtag to get a chance of meeting super-model Karlie Kloss.

L’Oréal Paris attempted to combat the saying that a bad hair day makes women feel less confident than they would on a good hair day by launching the #POWERON campaign to empower consumers’ self-confidence and raise awareness of the brand’s Advanced Hair care products.

“Karlie Kloss, who has won the Best Model Social Media Award, is also known for her active participation over social media”.  Kloss has 4.2 million followers on Instagram, over 1,051,362 followers on Twitter, over 422,209 YouTube subscribers and over 1,492,384 likes on her Facebook page.

“That means that any social media campaign which is sponsored through Karlie Kloss gets visibility from her huge database of addicted followers—providing abundant fuel for a campaign to catch on.”

Women empowerment

L’Oréal Paris has joined the list of other beauty brands that are leveraging social media discussion of women empowerment. However, L’Oréal had attempted to stand out from competitors by teaming up with supermodel and spokeswoman Karlie Kloss for a unique contest.

Fans who uploaded their fabulous hair moments over social media using the specified hashtag #POWERON, #POWERONCONTEST and @LOrealParisUSA were offered an entry to travel to New York City to meet Ms. Kloss.

Here are some of the stories that helped in building L’Oréal’s bigger player:

First, L’Oréal started Makeup.com, an online platform that publishes the source content from an editorial staff and a network of vloggers. Other beauty stars of YouTube like Michelle Phan and Eva Gutowski shared the branded content on their own channel that resulted in a broader reach for L’Oréal. The site has a healthy audience of its own, though, with 807,000 fans on Facebook, 23,600 followers on Twitter, and a sizable Pinterest following of 94,000.

Finally, L’Oréal’s most recent content marketing experiment moved away from publishing towards user-facing interactive technology. At the Cannes Film Festival, the brand unveiled Makeup Genius, an app that scans your face and allows you to virtually try on different L’Oréal products. The app is surprisingly addicting. The app encourages personalized exploration through over 300 L’Oréal products and curated “looks.”

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