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Principles and Practice of Marketing Coursework Assignment Sample

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Principles and Practice of Marketing Coursework Assignment Sample


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1.1 Organisational Background

L'Oréal S.A., established in Clichy, Hauts-de-Seine, is actually a French personal care corporation with a Paris headquarters. There is a considerable representation in the beauty market for cosmetics giants like Estee Lauder, L'Oréal and L'Oréal Professional (Sutariani, Putri, and Ariyaningsih, 2021). The L'Oréal Group was formed in 1909 by a young, ambitious chemist called Eugène Schueller with a meager investment of $100. This is one of the earliest self-created hair colors that hairdressers in Paris were introduced to when they visited the salon. Since L'Oréal was founded on these principles, science and technology have played an important role in shaping the company's core values: Beauty is supported by technology.

1.2 Chosen Product

A new range of CTM ("Cleansing, Toning, and Moisturizing") products from L'Oréal S.A. will use natural green tea extracts inside the UK, the company revealed. The products, which also are generally made from natural components like green tea and organic berry extracts and do not include preservatives, might be used by people with a broad variety of skin types. The creation of this product will take account the requirement for natural ingredients and paraben and alcohol-free goods. So, instead of utilizing plastic tubes, reusable containers will be used to avoid any environmental impact from the products in any way possible.

2. Market environment Analysis

2.1 External Analysis using PESTEL




The European "Cosmetics Requirements 1223/2009" is one of many rules that cosmetics firms in the UK must follow in order to stay competitive in the current market. There is indeed a set of regulations that govern all cosmetics sold in the United Kingdom under the name Cosmetic Items (Safety) (Frue, 2018). Makeup should be safe to use and should not cause any harm while being used by the public, which is a responsibility of the cosmetics business.


The beauty industry's influence to the UK economy in 2018 was projected at £28.4 billion, ultimately amounted to £27.2 billion in sales. It is estimated that 590,500 jobs were supplied by the beauty industry's overall contribution to the UK economy in 2018. (Lin et al., 2018). One out of every sixty people in england works in the beauty industry.


Organic beauty companies and their consumers are finding new ways to communicate via the arts, online marketing, and popular culture. When it comes to beauty influencers, the much more popular social media sites are Facebook and Instagram.


Increasingly, cosmetics companies are investing more money on virtual and real technology in order to better satisfy their clients' demands. The strength of cutting-edge technology allows companies to target a bigger audience (Abidemi, et al., 2019). Cosmetic companies use online tutorials, content producers, and other influencers to boost sales. The videos created by influencers are seen and shared by a large number of women all over the globe.


In the UK, pollution is evidently increasing public interest in organic products. Organic food is a must-have for the younger generation, who are more concerned about the environment. (González-Minero and Bravo-Díaz, 2018). The new CTM line from L'Oréal will be packed in recyclable bottles instead of plastic because of this.


"Food, Drug and Cosmetics Act" and the "Fair Packaging and Labeling Act " (FD&C Act) must be followed by the cosmetics industry in order to remain profitable (Novoveská, et al., 2019).

2.2 Internal Analysis using VRIO

The four components of VRIO employed in The Universalization of L'Oreal study are —

“Valuable”- To what extent is this a useful resource for Cosmetics Agon. According to Rajiv Lal, Carin-Isabel Knoop of the case study following are the important resources that are useful to the organization - financial resources, marketing experience, human resources, and operations management.

“Rare” – In order to determine the value of a resource, "Cosmetics Agon" must first determine if it is uncommon or expensive to get. Newcomers and existing competitors alike will be able to readily get access to these resources if they aren't uncommon.

“Costly to Imitate” –Disruption becomes more and more of a concern to almost every industry. According to the findings in The Universalization of L’Oreal, the Cosmetics Agon's essential distinction is difficult to imitate. Imitating Cosmetics Agon items on a larger scale may take two forms: duplication of the company and its products or the creation of replacement products by rivals that disrupt the current business structure.

“Competence and Capabilities of the Organization to Make the Best Use of Resources” – Cosmetics Agon products may be evaluated from two distinct perspectives when it concerns to their exploitation degree on the market. It examines how much of the valuable, rare, and difficult-to-imitate commodity the company was able to extract. An important consideration is whether or not the firm can make full use of the resource's potential.

3. SWOT Analysis



  • • L'oreal is the world's biggest beauty and cosmetics firm by market value. 
  • • L'oreal's brands are well-known for their integrated marketing communications (IMC).
  • An enormous number of sub-categories L'oreal has had its share of difficulties in dealing with such a large organization, and so has its rival. The corporation has a bad reputation for being slow and cumbersome as a result of its various subsidiaries.
  • As a result of L'oreal's investments in R&D, organic processes, and high distribution expenses, the company's profit margins have shrunk relative to those of its competitors.



  • Peta and other animal rights organizations are increasing their involvement in the organic cosmetics sector. L'oreal, which has always depended on organic techniques of R&D, welcomes this need.
  • It's difficult to keep up with the latest trends in the cosmetics industry since it's ever-evolving.

(Source: Kim et al., 2021; Ismail, 2018)

4. Competitor Analysis





Cosmetics, hair care, and fragrances that are safe, effective, and high quality for all ladies and men throughout the globe. The organic CTM line will be expanded in the future by the firm.

Rather of using plastic bottles, the new CTM line from L'Oréal will come in recyclable glass bottles and be free of parabens.


With its headquarters in New York, the American multinational Maybelline manufactures skin care, scent and personal care products for the whole family of Maybelline products.

Cosmetics from Maybelline New York have a trendy, urban edge and a dynamic attitude owing to the company's combination of cutting-edge formulas and trend expertise.


“Food, condiments, frozen yogurt, well-being vitamins, mineral, and supplements, coffee, breakfast cereal, tea, cleaning agents, water and air purifiers, pet food, toothpaste, beauty goods, and personal care” are some of the items that are offered by Unilever.

With our 25,000-b sales force, Unilever is committed to making sustainable living the norm across the globe, and this aim can only be achieved with their help.


Revlon, Inc. is a cosmetic, fragrance, skin care, and personal care corporation headquartered in the United States.

As a global leader in the beauty industry, Revlon aims to provide customers with products that enhance their sense of self-worth and self-confidence.

5. Recommendations

5.1 Chosen Target Market

This product range is aimed for men and women aged 15 to 55 years old. Women in the United Kingdom are a growth industry for natural skincare products, thus these products will be targeted mostly towards women in that country (Lin et al., 2018). Modern customers choose quality above everything else when it came to organic cosmetics and personal care products. As keeping of the company's overall goal to serve a wide range of customers including spas, clothing stores and hotels as well as the general public with lifestyle and therapeutic brands, as well as baby care items,

The market value of skincare products in the United Kingdom has grown since 2009, as seen in the graph below. There had been a rise in the value of the skincare sector from 2.14 billion UK pounds in December 2018 to 2.16 billion UK pounds. A ten-year rise in the market price of skincare products resulted in a 1.84 billion British pound valuation in December 2012. (Statista, 2009).

(Source: Statista, 2009)

As predicted, the UK's skincare industry is likely to grow at a pace of 5.2 percent over the next decade, achieving a value of USD 24.37 billion by then (2019-2024). The new Loreal CTM natural skincare collection has a lot to live up to as a result of this. Loreal does have a chance as more individuals in the UK start paying more attention to their skin and hair care. This industry have seen a huge shift in consumer awareness. It is getting easier for domestic clients to understand their skin's features and the possible side effects of different treatments. Development in the UK cosmetics industry has been fueled by an increase in the number of older people in the country. A vast variety of herbal and aromatic ingredients, as well as fruit extracts, may be found around the country. In the UK, the skincare market is controlled by Unilever, "L'Oréal S.A., Clarins, and Procter & Gamble". As a consequence, Loreal is able to successfully introduce a new skincare line since the risk of new entrants is smaller.

5.2 Market Positioning

Cosmetics and skin care products are expected to grow at a CAGR of 5.2 percent in the United Kingdom over the forecast period (2019-2024). And that is why the new natural skincare CTM line from Loreal has the potential to be very popular (Statista, 2009). Customers in the UK are becoming increasingly concerned about the care of their skin and hair, this creates an opportunity for Loreal. For the new product line, the Organic CTM will concentrate on Universalization, which means recognizing the diversity in cultural p

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