Diego Leng, Ana Sanchez, Victor Redondo, Clara Huidobro, Maisie Seco

Diego Leng, Ana Sanchez, Victor Redondo, Clara Huidobro, Maisie
Seco
PS4
Perception is all about consumers subjective understandings and not objective
realities, how do you think your product is perceived? Why?
Loreal makeup brand perception is created using media adverts because vision and
hearing are major factors affecting consumer's self-concept.
Customers tend to choose products and services endorsed by celebrities than others
without endorsement. LOreal uses celebrities on their advertisements in order to
attract the attention of the customers and making them believe that they can look
like them if they use the same makeup.
LOreal uses also social media as a marketing tool by using For L'Oral, by using
celebrity endorsement advertising on TV adverts or specialists as brand ambassadors
for a typical catalogue of products like Michelle Phan with EM- cosmetics, the
company can attract attention from US celebrity's fans and potential customers as
well. With more than 5.2 million subscribers of YouTube and her make-up skills
proved by weekly beauty tutorial videos, L'Oral has introduced EM-cosmetics
referenced by Michelle Phan for online sales only. This creates an unique selling point
for the product and helps the company brand name stand out from the crowded
cosmetic market.
2.
Loreal makeup has always been in the spotlight for all its controversial, and
sometimes offending commercials. From the banning on TV of Penelope Cruzs
eyelash mascara (as she was clearly wearing fake lashes on it) to probably the most
remarkable one, that appeared back in 2008, when they were accused of whitening
Beyoncs skin:
In any case, Loreal has continued launching a series of advertisements that have also
been involved in a lot of polemica, specially for the exaggerated use of photoshop.
The latest case occurred when the UKs Advertising Standards Agency (ASA) banned
the images for the promotion of a new product. They accused them of over
airbrushing the women than appeared on it, who were Julia Roberts and Christy
Turlington.
The company admitted the heavy retouch, but claimed that those were the effects
that could be reached with the new product,that had been scientifically proven to
work. This way, they affirmed that the photograph of Roberts was an aspirational
picture.
3. Think of a purchase of your PM .What type(s) of perceived risk is (are) involved?
How can the consumer handle the risk? Please explain.

Seco
If there is a Purchase of our PM for example in the how that involves the purchase of
the six researches and development centers around the world, the forty-two
manufacturing plants, in summary how the company do business, it can be observed
some risks such as Functional risk, Physical risk, Financial Risk and Time Risk.
The Functional risk would make that the product wont perform as expected it might
happen that if the how is purchased, the quality of products decrease and consumer
would start buying other brands of makeup.
Physical Risk: Product can harm self and others. If they change the researches and
developers of the product it could be the case that they change the process and
components of the products using other kind of raw materials to create the same
final products as the beginning. As the formula change, they can arise allergies and
skin problems to that consumers of L'oreal Make Up
Financial Risk: Product will not worth it cost, as the how have been bought, the new
owners of that PM could increases cost and consumers at the same time that the
quality had decreased as we saw in the Functional risk.
Time Risk: If the Product doesn't perform as its expected it might be the situation
that the company stop selling the product.
In the four cases consumers would handle this risk by buying make up to competitors,
it's the only option they had if the quality of products decrease, they have allergies,
there is an increase in products or a dissipation of the product

Seco
PS 5
SWOT ANALYSIS LORAL MAKE-UP:
Strengths:
(1) Loral has proven to be an extremely innovate
brand showing the drive for future growth and stay
ahead of its competitors.
(2) Always strives to achieve and delivers the best
products for its costumers.
(3) Loyalty brand.
(4) Leader in the cosmetics industry despite the
emerging competition.
Weaknesses:
(1) Large growing competition from other leading
cosmetics brands.
(2) Short span of time for products due to the vast
growth of the cosmetics markets that Loral has to
adapt instantly to these changes.
(3) Due to more innovative or age appropriate brands,
loyal Loral consumers may switch brands in order to
look for something different.
(5) 60,000+ employees and carries operations in over

130 countries.
(6) Vast high-end advertising, which had adapted
accordingly to its target audience.
Opportunities:
(1) Cosmetics is a current growing market within the
50+ age group.
(2) Due to the economic downturn in the Eurozone,
China is currently seen as a growing market for
cosmetics as consumer preoccupation with skin care is
emerging.
Threats:
(1) Growing competition of other cosmetic brands.
(2) Economic downturn in the Eurozone has caused for
consumers to be less willing to spend money on
cosmetics or may simply see it as a luxury.
(3) Switching to cheaper substitutes.
Vulnerability Analysis: LOreal is a brand that has created its reputation in France
and most of Europe and it may be vulnerable at entering different markets like the
Chinese or the American since mentalities change with culture. Also, LOreal may also
be vulnerable to certain factors like the large growing competition from other
leading cosmetics brands like Revlon, Chambor, and Lakme. Moreover, due to more
innovative or age appropriate brands, Loral consumers may switch brands in order
to look for something different. Loreal may be subject to loose consumers to
cheaper substitutes.
Potential Analysis: If LOreal advertises well its brand and motive then they will be
able to open the Japanese, American, African and Chinese markets creating
enormous potential. The L'Oreal name will always be linked to Parisian
sophistication, but now the more modern L'Oreal is only French when it wants to be,
and the company is eager to represent all nationalities. L'Oreal is aware that in the
global market you have to be diverse and flexible, especially in ad campaigns, a
danger for many cosmetic companies since every culture defines beauty differently.
This attitude is reflected in many of L'Oreal's advertisements.

Diego Leng, Ana Sanchez, Victor Redondo, Clara Huidobro, Maisie Seco

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Diego Leng, Ana Sanchez, Victor Redondo, Clara Huidobro, Maisie Seco

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Diego Leng, Ana Sanchez, Victor Redondo, Clara Huidobro, Maisie

Diego Leng, Ana Sanchez, Victor Redondo, Clara Huidobro, Maisie

Diego Leng, Ana Sanchez, Victor Redondo, Clara Huidobro, Maisie

SWOT ANALYSIS LORAL MAKE-UP:

(5) 60,000+ employees and carries operations in over

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