Marketing And Its Impacts On Supply Chain - Myassignmenthelp.Com

Question: Discuss about the Marketing And Its Impacts On Supply Chain. Answer: Introduction The report focuses on the various concepts of marketing by analyzing the business organisation named LOreal within the cosmetic industry. The report will demonstrate the operating environment as well as develop useful marketing strategies for enhancing the marketing processes efficiency and consider the external and internal factors that can contribute to the marketing efficiency. To analyse the organisation and its operating environment, various aspects will be covered including the business organisations mission statement while the 5C approach will be used to determine the customers, collaborator, competitors and the entire organizational extent. By obtaining relevant information from this, it will be easy to conduct market researches and understand the threats that may be posed by the competitors (Loreal.com.au 2018). This will also help in setting up various functions and develop marketing strategies for targeting specific market segments, enhance the value proposition and positi on the products properly in the market too. Issue 1 LOreal, Australia is one of the leading company in beauty within the cosmetic industry that provides the best quality cosmetic products and beauty services to the customers not only in Australia and but to customers all over the world. The company belongs from the cosmetic industry and the mission statement of the company is to share beauty with all through delivery of the best quality beauty products that can keep the customers satisfied and at the same time keep them beautiful with progressing age and healthy skin. The mission statement of the company is to enable cosmetic innovation for all. The beauty brand has been committed to excellence in the beauty products and services and contributed largely to the beauty and healthy skin of the individuals by allowing them to express their positive attitudes, behaviours, personalities and even gained self confidence (Bresler and Lubbe 2014). According to the company, beauty is a common language and so to ensure proper value statement, the organisation has provided the best cosmetics innovation from the perspectives of quality, safety, health and effectiveness. The slogan used for advertising purposes is Because you're worth it. The company follows the vision of fulfilling the diversity of beauty needs and even drew inspiration from many women to go beyond limitations and invested on the development of new products for becoming successful in the future. Beauty is a commitment, as stated by the organisation in its values and beliefs, which has enriched the beauty of people and created universalisation through promotion of new beauty products for each and everyone in different market segments of Australia (Kotler et al. 2014). The company to enhance the rband awareness and make people more centered on the products and services delivered by LOreal follows the marketing strategies. This would not only influence the buying behaviors of the consumers but could also result in high level of customer satisfaction. The marketing strategies followed by the company are distribution, promotions, managing corporate social responsibilities and extending the brand through internationalization. To stay ahead in the competition, the company has enhanced the distribution network by providing incentives and delivering more products and services to the retailers, distributors and keep those products in stock (Shen and Bissell 2013). To enhance brand promotions, LOreal has also provided complimentary lip guide after making purchases on a particular amount of money. Celebrity endorsements were done as well for ensuring that the products and services gain more exposure in the different market segments and influence the buying b ehaviours of the consumers. The company has supported campaign for safe cosmetics usage to enhance the confidence of customers to buy the products and maintain global business sustainability too. Marketing strategies also included advertising and promotions to promote innovation of products and even delivered products according to the needs of customers in the different market segments. Global advertisements spending has increased as well to enter the mass markets and keep the customers informed about the new products and services delivered by the organisation (Hitt, Ireland and Hoskisson 2012). To manage the corporate social responsibilities properly, LOreal, Australia has conducted researches to spend the fellowships for purchasing the various equipments and machineries. The company also handled the child care costs and travel costs to maintain consistency all throughout the research activities. Issue 2 The 5Cs of marketing is used by LOreal to conduct analysis of the various areas that are related to the marketing activities managed by the organisation. The 5Cs marketing has been effective for the organisation to create a well defined marketing plan and follow proper guidelines to make the best decisions and improve the profit and this allowed for gaining competitive advantage within the competitive cosmetic industry in Australia. The five major components of the model are customers, company, competition, collaborators and organisational context (Berthon et al. 2012). Company The offerings of the organisation, brand image and identity, culture, goals and objectives are considered as the major components of the first aspect of the 5Cs marketing analysis. The organisations strengths and major resources used by the company along with the weaknesses could be the other essential aspects required for the management of marketing activities with ease and effectiveness. The major strength of the company is its ability to conduct researches and promoting innovation by focusing on the beauty and thereby ensuring that the company offers the best quality cosmetic products to the consumers. Due to high level of dedication to the research, the company has been one of the leading cosmetic industry despite the huge competition in the market (Solomon 2014). The company also specializes in dermatological and pharmaceutical areas to focus on the development of new products and services and maintain quality in terms of the products and services offered. The weaknesses of the company are decentralized organizational structure, multiple sub divisions of the company and lower profit margin than the other cosmetics company. This problem has arisen due to the immense investments and costs incurred while managing the advertising and promotional activities. The scopes and opportunities of LOreal are immense because the company delivers its products and services to women of all ages. The company can further focus on hair styling, color, skin care products and perfume products too. Being one of the leading cosmetic company in Australia, the company also can target mass market by expanding globally. LOreal has also taken the benefits of having a good market share and with multiple patents registered by the company, it has become easy for managing the licensing activities and ensured global expansion (Morgan, Katsikeas and Vorhies 2012). One of the major threats could be the high competition level and economic downturn as well. The products and services are of good quality, tough sometimes, the customers might think that those had not been inclined with their basic needs and thus could skip buying. The company was trying to focus on hair care products though it failed miserably due to the products offered by Clairol, which is a leading hair care brand (Kim et al. 2012). Customers The company is serving the customers and managing the corporate social responsibilities properly to make sure that it not only benefits the customers but also contributing largely to the community. It is important for LOreal to understand the behaviors and lifestyles of the customers to influence their buying behaviours (Mintz and Currim 2013). The customers mainly want something unique from the company that can keep them beautiful or long time and at the same time, maintain healthy skin and hair. LOreal has offered products to every customer segments, from young to adults for ensuring that the products could enter new market segments easily and increase the customer base. The behaviours of customers are dependent upon the sales promotion done by the company, prices set, distribution and diversification of the products too (Nagasawa and Kizu 2012). Collaborators The distributors of Loreal include Giorgio Armani, Cacharel, Diesel, Lancome, Kiehls, Clarisonic, etc. The products division for the consumers are Loreal Paris, Essie, Maybeline, Magic, etc. There are no such suppliers because the company produces its own products and made conscious choices and decisions to reduce the environmental footprint. One of the major objective of the company is to archive sustainability, which has been possible by working in partnership with Good360 to provide support to the poor people. By managing partnership, the company contributed to the excellence by providing more than $1 billion worth of products to the Australians who were vulnerable to some kind of harm or suffered from poverty. Rather than using the supplies, the organisation promoted sustainable approaches through use of renewable energy, reduced the water wastage and even manage the reengineering package for using less plastic materials. There are few suppliers though who have been verified as s ustainable suppliers (Kizu and Nagasawa 2012). Competitors The major competitors of Loreal are Clairol, The Estee Lauder Companies Inc, Chanel, Estee Lauder, etc. The competition level is high and so it has posed serious threat for the company to sustain in the marketplace. Akin, Lanolips, Sodashi, The Jojoba company are new entrants in the market which can also give stiff competition to LOreal. Context The organizational context means the various factors that have impacted the business performance like the political, legal, technological, social and economic factors. The impact of EU law has restricted the production of various products consisting of chemicals like Phthalates. LOreal follows the obligations to deliver the best quality products that are safe and healthy and do not contain any harmful chemicals. The European Parliament and the Council of the European Uniontocreatebanonanimaltestingproductsapprovedseventh Amendment cosmetics directive (Osterwalder et al. 2014). The economic downturn was a major issue for LOreal, though the program of Young Women in science fellowship resulted in higher sales when compared to the last years profit. With the higher living standards, the consumers are focusing more on the brand image and demands for quality and convenience related to the cosmetic and skin care products has increased. With the advancement in technology, LOreal has conduct ed research and development activities and even registered more than 500 patents considering the cosmetics and dermatology fields (ter Heide and Gontarz 2017). The quality of products and services has alsoimprovedwiththeuseofnewmachineriesandequipments, furthermore promoted innovation too. Issue 3 The customers of Australia are more focused on quality regardless of the prices that have been set for the productsandservicesprovidedbytheorganisation.The customers want something that cannot only fulfill their demands and preferencesbutwillalsoinfluencetheirbehaviours to make purchases consistently (Loreal.com.au 2018).The competitors that posed serious threats for the company were Revlon, Garnier, Lakme,Yardleyand Chamber. The context of business has changed due to the political, economic, social and technological factors that have created an impact on the business functioning. With the immense scopes brought through globalization, the consideration of political factors like fulfilling the Government obligations, managing the import policies and managing the rate of interest and exchange have contributed positively to the organisation. The rates of exchange could affect the way LOreal had been functioning and so according to the GDP rate, the prices should be set properly to keep up pace with the changing business environment. The cust9mers in Australia are less concerned about the prices of products, rather they are more conscious about the quality of products and services (Yoo, Donthu and Lee 2014). Therefore, in order to meet up to their expectations the company offered new product line including anti ageing cream and hair care products too. By collaborating with Good360, the products that remained unsold had been delivered to various charities and this supported the people suffering from poverty. The poor people were also provided with personal care goods, blankets and clothing s that they could live a good and healthy life in the future. LOreal, Australia is the silver sponsor of White Ribbon and it is managed to make sure that any sort of violence is prevented against the women (Loreal.com.au 2018). Initially, L'Oreal was focused in selling its products to the countries like United States, and Japan as the market in these countries was very much open for foreign trade. However, the current scenario and the concept of globalization has urged LOreal to spread its business to the different countries like Australia, Russia, Asia, Eastern Europe, and Africa, which are the promising players of the market and their rising economies are likely to be even higher globally in the future. Australia is one of the flourishing and thriving target markets for Australia due to its high economics and consumer segmentation position. The main reason why L'Oreal would benefit from trading in the Australian continent is due to the culture of the people in the Australian continent. The population is not only advanced but they are willing to pay whatever it takes to lead a cheerful and healthy lifestyle. Not only the Australian women but also men are much obsessed about their living lifestyles, in term s of attractive looks and presentation. L'Oreal would be more successful in Australia due to the anti aging cream, which has been launched in recently launched. Main reason following this is that anti aging cream would spike a growth in market of the country. However, with rise in the number of competitors emerging with this category of product in the market, it has become necessary for the company to keep a strong foothold on the anti aging cream segment (West, Ford and Ibrahim 2015). L'Oreal is facing a great challenge from other major competitors in the cosmetics industry but it is still prevailing at the top of the list because of its strategies in the marketing mix (products, promotion and pricing according to the place (Hollensen 2015). The people of the Australia can afford to purchase first-class products. Therefore, it can be considered that the value proposition of L'Oreal in Australia would be much promising than some of the other countries where the people are not much interested in the premium products. L'Oreal is very cautious in the selection of the price tag for all the products. L'Oreal deals its price band for products in a range of moderate to low price, depending on the country and the assortment of the product and the quality. Thus, with reference to the value proposition of LOreal, the pricing structure has been kept in congruence to the quality of the products that L'Oreal delivers and would be delivering to its patrons (Osterwalder et al. 20 14). L'Oreal has extended its reach in more than 130 countries and is constantly looking for its expansion. L'Oreal possesses around 23 global brands, which would make it a versatile company for all consumers. The flagship of the company has reached around 25.83 billion in the year of 2016 and ever expanding in its net profit every year. Generation such profits in the existing competition is a certain positioning statement for the company. However, based on the target market, LOreal can certainly generate more revenue with respect to the response from the target market, the wide product assortments in correspondence to the brands product quality and excellence (Goetsch and Davis 2014). A detailed 4P marketing mix strategy is used for identifying the products, prices, places and promotions done by LOreal. Products There are many brands offered by Loreal and few of the major products of the company are Loreal Lux products including the Kiehl, Lancome, Ralph Lauren, Giorgio Armani, etc. The consumer product division consist of LOreal Paris, Maybeline New York, Garnier, Sampoo and the active cosmetic divisions include Vichy, Sanoflore, etc. From the marketing strategy illustrated in the above section , a new anti aging cream is also introduced to influence the buying behaviours and allow the company to generate more revenue, furthermore gain an increase in the market share too (Loreal.com.au 2018). Price LOreal, being one of the major cosmetics brands has distributed the consumer product division brands in the retail channels for making those available easily for the customers. It will attract the mass market and the prices of the products are also reasonable. The products are available online too, because of which, the customers can even pay premium prices because of the good quality. To penetrate new market segments with different price levels, the company has continuously innovated and kept prices of products reasonable (Morgan, Katsikeas and Vorhies 2012). Place The products are available on the online shopping websites and with its huge distribution networks, the shops are present in more than 130 countries. The products and service are available at retail shops, supermarkets and at kirana stores for attracting more customers by targeting the mass market (Huang and Sarigll 2014). Promotion Celebrity endorsements are common for LOreal and popular celebrities promoted the brand like Jennifer Lopez, Naomi Watts, Aishwariya Rai Bachhan, Katrina Kaif to create awareness among the customers, Promotions have been done through digital advertisements and the word of mouth marketing promotions strategy has also aid of for the company to generate enough revenue in business. Social media involvement has also improved the efficiency of promotional activities (Bresler and Lubbe 2014). References Berthon, P.R., Pitt, L.F., Plangger, K. and Shapiro, D., 2012. Marketing meets Web 2.0, social media, and creative consumers: Implications for international marketing strategy.Business horizons,55(3), pp.261-271. Bresler, M. and Lubbe, I., 2014. Marketing management. Chan, H.K., He, H. and Wang, W.Y., 2012. Green marketing and its impact on supply chain management in industrial markets.Industrial Marketing Management,41(4), pp.557-562. 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