Marketing 18th Edition by William Pride,Ferrell

Exercise 3

L'Oréal's Integrated Marketing Communicates a Decades-Old Story
L'Oréal Paris, the French cosmetics division of parent company L'Oréal SA, is an effective architect of integrated marketing communications. They have achieved such status by coordinating a mix of marketing activities through the most appropriate channels and relaying a consistent brand message to customers over several decades. Their success is evidenced by long-term customer relationships, customer loyalty, and influential brand ambassadors over the years. Though L'Oréal Paris has been at times slow to adapt to cultural and demographic changes, they have proven capable of implementing appropriate and synchronized marketing tactics resulting in quick recovery.
L'Oréal's slogan, "Because We're Worth It," is the platform upon which the company's entire marketing strategy is built. Created in 1971, a time when women were seeking to become more empowered, the slogan has remained a powerful force behind the brand. Unlike most company slogans, the L'Oréal slogan has not had significant makeovers due to its simply stated classic message. The slogan has proven resilient in the face of inevitable evolution of brands and consumer tastes. Changes to the company slogan "Because I'm Worth It" have been limited to pronouns. It changed in the 1990s to say "Because You're Worth It," at which point the company launched a global marketing campaign. The slogan has since been translated into 40 languages. In 2010, when nearing its 40th anniversary, the slogan was changed once more to read "Because We're Worth It." The purpose of this change was to refresh their image while remaining loyal to the original message of creating a sense of self-worth and confidence among women.
The company's brand ambassadors have also reinforced the power of the slogan. L'Oréal carefully chooses a wide range of representatives across cultures, ages, and appearances who embody the essence of a strong and empowered woman. Ambassadors such as Aimee Mullins, Beyoncé Knowles, and Jennifer Lopez inspire word-of-mouth communication among customers through advertisements, interviews in which they explain what the brand means to them, and advocacy efforts. Although the slogan's sense of female empowerment may not be as relevant in Europe or America, there is opportunity in Africa and Asia where women's rights are taking hold. L'Oréal's corporate communications team is working to develop more awareness of the brand and greater customer relationships through institutional media relations, corporate social responsibility initiatives, and reputation management. In developing a more global approach, L'Oréal also hires teams of people from multiple countries to research the skin and hair of different people groups.
Although L'Oréal is the largest cosmetics company worldwide, selling an estimated 50 products per second, sales have slipped in recent years. Experts feel that the onset of the digital age and shorter attention spans may be making the slogan less effective and outdated. Despite these concerns, L'Oréal Paris's CEO announced he intends to keep the slogan, and is using it as the basis for digital marketing campaigns. In 2010 the company hired their first chief marketing officer, Marc Speichert, to launch all of the company's brands into the digital realm. Speichert's first contribution was to build a media team to work closely with a consumer insights team to determine what channels and content are appropriate for their different audiences. Based on this information, the company focused on media and Internet displays, social media, TV and print advertising, search optimization, and videos.
As of 2012, L'Oréal became the seventh biggest advertiser in the United States, having spent more than $2 billion dollars on print and television advertising. They have also seen positive results from search optimization and their social media partnership with famous beauty blogger Michelle Phan. The popularity of this marketing component initiated a new cosmetics line to be sold on e-commerce sites as well as in an exclusive location in New York.
L'Oréal's content marketing is based on three pillars: education, empowerment, and aspiration. In line with these three topics, how-to and do-it-yourself videos have been created informing consumers of various beauty tips. Videos focused on empowerment send the message of the brand's strength and confidence rather than just focusing on cosmetics and beauty, leaving customers with a positive outlook. Finally, aspirational videos are reflections of the company's sponsorships with various awards and fashion events, which infuse the brand with elevated perceptions. Overall, these videos and the entirety of the company's content marketing initiatives work together to tell the story of the firm to consumers, creating value and brand awareness among loyal and new users.
Questions for Discussion
Why is it important to have a story to tell when developing content marketing?