Buyer Behaviour Analysis

Analysis of Market Environment

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Introduction to Buyer Behaviour Analysis

In today’s scenario, there is requirement of every brand to discover its image in market. This is a requirement as it is the only thing which aids in dragging customer’s loyalty towards the brand (Baltas, 2003). The current report has made an emphasis on brand analysis and consumer behavior with respect to L'Oreal. The report will focus on presenting the products and services of brand as well as analyzing its market environment. Emphasis will also be given on marketing strategies as well as evaluating how consumer motivation, perception can influence there purchase decision. Recommendations will further be given on improvements to be brought in their current marketing strategies. 

Presentation Of Loreal Brand And Their Products/Services To Justify Their Classification As A Successful Brand

L'Oreal Company has been richly endowed with a portfolio of international brands that are unique in the world. They cover up all lines of cosmetics so as to respond with diverse needs of the consumers that are present over the globe (Carrigan and Szmigin, 2003). L'Oreal is a cosmetic company that has been offering wide range of products in skin care, hair color, makeup, perfumes as well a hair care.

L'Oreal has been clambered as a successful brand due to its recognition as being the largest cosmetics and beauty based firm (Widing, 2003). I have got the presence of 228 global brands that includes Lancôme, Maybelline, and Redken that has assisted in pampering and adding beauty to the life of people on a daily basis (L'Oreal Americas, 2015).

Present An Analysis Of The Market (Marketing Environment)

POLITICAL: L'Oreal is required to adhere with the policies as laid by different governments. These are inclusive of environmental law, foreign trade regulation as well as taxation (Chawner, 2008).

ECONOMIC: The product categories offered by L’Oreal in the consumer segment are very sensitive to global economies of scale and scope.The revenue of L’Oreal has increased by half since 2004 and its profits have almost doubled net profits of 17.6% in 2013 alone

SOCIALL’Oreal has been recognized as leader of change. It has further been known for its approaches to sustainable, responsible and inclusive growth

TECHNOLOGICAL: The research and development team at L’Oreal has ensured to maintain Scientific knowledge of the skin and hair which has led to generation of many innovations (Fisher and Pride, 2006). It has made use of technology in formulation of products.

ENVIRONMENTAL: L’Oreal has been making use of ingredients that are natural and environment friendly. It has ensured to carry out environmental audits followed by establishing indicators so as to check out if the standards are being maintained or not (Shimp And Andrews, 2013)

LEGAL: Loreal is required to conform to all the standards as laid by government in various nations (Dimitrova and Rosenbloom, 2011). It further has an obligation to maintain safe products that do not have a presence of harmful elements (Smith, 2002). 

Marketing Strategies Of Loreal 

Targeting – L’Oreal with the help of its strategies have focused on targeting all categories of consumers. It was previously known as a luxury brand but now is more feasible for middle income groups as well. It has made different product for both male as well as female gender (Dawson, 2001). For example, in China L’Oreal has focused on a significant portion of luxury consumers but it has seen a huge potential for middle class people as well. The company has also made an attempt to offer the beauty products to all generations at differential price ranges (Fangfang, 2013). 

Positioning strategy – Company has always focused on maintaining strong as well as long term brand positioning in the minds of middle age women and teenage girls. L’Oreal has adopted a differentiated positioning strategy as per the target market (Fuchs and Diamantopoulos, 2010). For example, in case of Asia, L’Oreal has made an attempt to move from open-shelf brand in Europe to top international brand in Asia. In the Asian nations, focus has been given on setting up of upscale department stores (L’Oreal’s Segmenting and Targeting Markets, 2015). As per the given strategy, L’Oreal has positioned itself as being the most innovative company that has been providing high quality and advanced products at affordable prices.

Marketing Mix 

The marketing mix is the regarded as one of the major tools for the analysis of the market position of a company (Fisher and Pride, 2006).

Product- L’Oreal has been offering a wide range of products in the market. These are inclusive of hair and skin care products, makeup, perfumes etc

Price- L’Oreal has been regarded as a luxury brand but with the coming time it has focused on adopting a low pricing strategy. For example, Garnier Essentials has launched low priced lotions that are costing less than €5

Place – The approach undertaken by L’Oreal towards unique and immense distribution. L’Oreal operates in almost all the distribution chains. These include pharmacies, supermarkets, hypermarkets, independent stores as well as hair salons

Promotion – L’Oreal has given a major emphasis on adopting viral marketing strategy as a part of its promotional efforts. Other than this, focus has also been given on International ad campaigns as well as celebrity marketing tactics

Critical Evaluation Of How Consumer Motivation, Perceptions, Learning And Attitude Formation Could Influence Purchasing Of Loreal

As per the present market conditions, shampoo of L'Oreal Company are connected to the emotions of the female consumers. The women are more conscious about their hair and try those products which reduce their hair fall, dandruff problems and many other related hair issues (Carrigan and Szmigin, 2003). The marketing of the product s of L'Oreal Company are in such a way so that it directly hit the consumer emotions and influence them to use the shampoos. There are certain factors which affecting and influencing the consumers to purchase the L'Oreal shampoo which are as follows. 

Motivation: Motivation is a factor which will influence the consumers to develop a good and excessive purchasing behavior. With the help of this, its enough for the L'Oreal Company to fulfill the needs of the customer’s (Dimitrova and Rosenbloom, 2011). Motivation can be directly related to the needs of the customers and in the same time it can be classify and expressed the different stages of the consumer buying behavior. For increasing the sales of the L'Oreal Company and encourage the customers for more purchasing, firm should try to read customer’s mind so that it will easty to develop the products

Perception: This is related to the thinking of an individual person about the products and services of the particular company. As per the situation, the perception of the person can change (Chawner, 2008). It depends on the experience, personal characteristics and beliefs on an individual person which may be vary person to person. L'Oreal Company can divide its customers according to the selective attention, selective distortion and selective retention. Company should give the attention to the the selective retention people who are remember the benefits of the products

Learning and attitude formations: These are comes from the practices and perform the various actions. The learning of the people can change their behavior as per his knowledge and information (Lamb, Hair and McDaniel, 2008). For example, by using the L'Oreal shampoo, if the consumer gets some positive results such as reduce hair fall problem etc than this is a comfort zone because the consumer learn from the its own experience. Attitude can be define as a feeling or assessment of the objects. The positive attitude of the consumer towards buying the products increase the sales of  L'Oreal Company (Dawson,  2001). But the negative attitude of the people affect the brand image of the products. So for increase the sales of  L'Oreal shampoo, it is required for the company to change the attitudes of the potential customers towards the services and influence them for buying the products. 

Emotional drivers: These factors are major elements which influence the buying behavior of consumers. There are several factors which can be say as a emotional factors such as fear, guilt, pride, love and greed (Fuchs and Diamantopoulos, 2010). The women are more carrying about their hairs so by consider this fact, it will easy for L'Oreal Company to change the consumer behavior for buying the products and services. It will be a best way of the company to directly hit on the customer fear and insecurity to change the behavior of buying (Shimp and Andrews, C. 2013). The advertising and promotion of the shampoo in such a way so that people can influenced by purchase the products.

Make Recommendations For Improvements To Their Current Marketing Strategies

L'Oreal Company is a major and more competitive industry in the sector of shampoo as well as cosmetic products. There are wide range of the products which are offering by the company to its potential and target customers (Harris, 2002). The major target audience of L'Oreal Company are all age of people and in which mainly are women. The segmentation of the customer on the basis of income, age and psychographic. In the present time, the market position of the company are good and people are frequently buying the products (Solomon, Marshall and Stuart, 2011). The pricing of the wider range products are reducing day by day so that people can easily afford its services. L'Oreal is now changing the face of beauty by its different range of goods and influenced the customer to buy these products. The methods which are using for the marketing are change the perceptions of the people (Widing, 2003). The marketing strategies affects the buying behavior of the consumers and attract the more and more customers for purchasing. 


Recommendations of L'Oreal Company can be divided into two parts which are short run and long run strategies. By following these strategies, it will easy for the firm to improve current marketing strategies (Baltas, 2003).

Short run strategies:

  • Company has to go with the digital marketing strategies because it will easy to target the customer in a large volume.
  • Company has to try to spend more and more money on improving the promotion of the services (Smith, 2002).
  • L'Oreal has to follow the cost leadership style by lower down the prices of the shampoos. It will easy to capture large market share and increase the footfall of the customer’s.
  • By organizing the rode shows, event and many other things, company can gives the strengthen to its current market strategies (Carrigan and Szmigin, 2003).
  • In addition to this, company has to understand the needs of the customers and try to bring the new innovations in the existing products (Lamb, Hair and McDaniel, 2008).

Long term strategies:

  • L'Oreal Company has to launch the products ranges as per the needs and requirements of the people (Dimitrova and Rosenbloom, 2011).
  • By increasing the network of distribution channel, it will easy for the company to market and make the effective strategies in a right manner.
  • Company has to start the marketing of the new products before launching because it will create a excitement in the people about the new range of shampoo and they will mentally prepare to use them after the coming in the market (Fuchs and Diamantopoulos, 2010).


From the above report it can be concluded In today’s scenario, there is requirement of every brand to discover the brand image in the market as this is the only thing that can drag the customer’s loyalty towards the brand. As per the recent market structure, there are lots of developments seen in the market and as per the changes in the market; the company bring changes in their products and services. It is also clear that there are several factors which affecting the buying behavior of the consumers. These factors are motivation, perceptions, learning and attitude formations and the different emotional factors. These all factors change the perceptions and buying behavior of the people to buy L'Oreal Company products. By making the long term and short term strategies, company can easily improve its current marketing methods and increase the footfall of consumers. 


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