L’Oreal’s Digital Marketing Gives Them The Upper-Hand

  • Priscilla Manzo​
  • May 27, 2015
  • 0

Due to L’Oreal’s digital-marketing innovations in the past two year, their sales have significantly increased, triumphing over most U.S. packaged-goods companies.

The beauty company had a sales growth of 5.4 percent, bring their total sales to $4.1 billion for the year reported by Deutsche Bank from the SymphonyIRI data. In just their third quarter, L’Oreal’s North American sales went up 7.1 percent.

L’Oreal’s Chief Marketing Officer Marc Speichert explains the reason for their growth being due to low U.S. shares.

“We still see big opportunities in the U.S., in part because our shares are lower here than in other parts of the world, particularly Western Europe. There are still big opportunities in per-capita consumption when you compare the U.S. with some other developed countries,” says Speichert

That and their choice in digital marketing is what has led to the company’s success. L’Oreal’s L2 digital-innovation consultancy is what ultimately put the company in third among its 56 other competitors like Lancome and Estee Lauder.

lorealxbox-luckymag

via Lucky Magazine

The company was the first to create an Xbox app and partnered with Lucky magazine and their own website Makeup.com on it. The app has received much success, more so than a smartphone app would have because there is very few Xbox apps out there similar to theirs, whereas on a smartphone you can find tons of beauty apps.

The company has even started their own funding project called Next Fund from Digital Media, linking to their already established Women in Digital program, to help female startups in the tech industry

Speichert also said much of the company’s success is due to mixing the old with the new. The company still heavily uses TV and print ads for certain products, like their Garnier Skin Renew Dark Spot Corrector, because they seem to still catch their audiences greatly that way but makes sure they are also tied into online advertising.

He also reports a special way they increase their search traffic when internet users are searching for beauty products. Also tied to their Next Fund project, they connect their products with common beauty search queries. Similar to SEO, optimizing what people search to L’Oreal products.

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