Case Analysis: Social Media Strategies at L’Oréal Paris

In this case study, we see Marie Gulin, VP of Global Integrated Communications at L’Oréal and her team in a very tricky situation as they make decisions that will determine whether the brand will continue thriving in the market of hair dyes and cosmetics or not.

The expansion of the hair coloring industry 

It was a time when hair dye had gained a lot of popularity around the world. Studies show that in 2011, 60% of the women and about 10% of men in Europe were coloring their hair. In the U.S alone, 50% of women colored their hair. These statistics gave L’Oréal and its competitors a lot of hope that the market would continue to grow. The more people aged, the more they were likely to color their hair. The other reason why people preferred coloring their hair was to increase their self-confidence. Most women felt more attractive, impulsive and sexually exciting with their hair dyed.

Differentiating trends and fads

Up until 2011, the hair dye industry didn’t have a lot of sparkles and there was minimal creativity. The primary marketing strategy involved creating a new hair color and getting a celebrity to endorse it. L’Oréal was determined to change and innovate, however, differentiating between trends and fads was proving to be a challenge. At the time, two hair color trends were gaining a lot of popularity. The first one was the Ombre/deep dye and the second was Tie-dye. They needed to adopt one of them, so thorough research using social listening and data was essential to determine whether they were trends or fads.

kit-tie-and-dye

Marketing and social media strategies

After choosing the trending dye, Marie and her team’s second challenge was creating an effective marketing strategy with social media being an integral part of it. This method would create product awareness, excite consumers to try it and eventually generate advocates for it. They brainstormed some options. The first was to create a presence on social media platforms such as Twitter and Facebook. The second was to identify influencers that would create a buzz about the product. The third option included creating a platform where consumers could exchange information about it.

Having a presence on social media is a must for brands. It creates awareness, keeps consumers updated, and gives the brand the chance to communicate with them and listen to their needs. It’s also very useful when deciding what new products to launch and promoting them to the masses.

 

 

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