Chief Marketing Officer Marc Speichert suggests that to complement an already well-structured, well-executed product innovation, L'Oreal has worked to refresh its go-to-market strategy and efforts. Media and digital are clearly on his mind, given the four billion Google searches a year on beauty alone.
|YouTube ventures forthrightly into downtown Chicago|
In this regard, Michelle Phan is a nature choice for L'Oreal to partner with. I took a photo of this glossy poster of her, as there is now a concerted effort to raise her online virality to another level.
Beauty continues to be a growing area of content on YouTube, and brands like L'Oreal are tapping into this online community. More than 120 million how-to and beauty videos are watched every day on YouTube, and makeup videos are now the most searched for how-to content on YouTube.Reference: L'Oreal Launches New Makeup Line Designed by YouTube Beauty Guru Michelle Phan.
According to Google research, 50 percent of all beauty shoppers watch a beauty video on YouTube while they are shopping for products – that's 1 out of every 2 people shopping for beauty products.
|The `Path to Purchase is about demarcating and perpetuating the purchase process|
Speichert also spoke about `Path to Purchase. It's building enough awareness, if it isn't there already, so consumers can consider what L'Oreal has to offer. Besides the active viewing they do online, they talk with their beauticians and stylists, and no doubt their friends, too. In the best case scenario, not only does an evaluation lead to a purchase, but also the overall experience prompts consumers to keep buying L'Oreal and talking it up themselves.
The product consideration phase is serious because the consumer is discovering something new or making a connection. People spend a lot of time in the consideration phase engaging their stylist, media sources and their friends moving them from being interested to a desire to try the product “evaluation”.Reference: How L’Oreal Tracks the Consumer Path to Purchase.
The extensive evaluation process is one of L’Oreal’s key focus points since people are searching for pier to pier recommendations, prompting them to buy. Evaluation is a very collaborative process and also involves more content discovery. The buy side is not the end of the cycle, it’s only the beginning. The next stage is creating brand advocates that have an emotional connection. A carefully nurtured evangelist is required to spread out the target brand’s DNA to the salons and the consumers. Using an authentic tone and voice will perpetuate the organic reach and referrals that can last a lifetime.
Registered on July 31st 1919 in France, L'Oreal has had nearly 100 years to build itself up as the largest cosmetics company in the world.
|Numbers in brief|
Topline and bottomline numbers are steady in growth, and while investor confidence has level off since a year ago, L'Oreal is not far off its 52-year high (€137.65) with its current stock performance (€128.10). That's beautiful in both literal and financial languages.
Thank you for reading, and let me know what you think!
Ron Villejo, PhD