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Question: Discuss about the Marketing Strategy of a Business. Answer: Introduction Marketing strategy is a business which is a scheme for connecting people to provide them the product or services that the industry or the business delivers to the customers. The marketing strategy of a particular company has the companys value proposition , key marketing strategies , facts about the targeted customer (Stolyarova and Rialp 2014) . An organization or companys strategy is the mixture of all the marketing achievements into a one combined plan (Ibrahim and Wang 2016) . The marketing strategy is the basis of a marketing plan. LOreal is a French cosmetics company , the headquarter of the company is at Clichy, Hauts-de-Seine. The founder of this company was Eugene Schuller. It is one of the worlds largest cosmetics company and has products in the field of cosmetics. They are hair colour, skin care, sun protection, make-up, perfume and hair care. LOreal is expanded into different countries like Australia, England, France, India, Ukraine and various other countries. The main a im of the LOreal company is to deliver beauty products to all people of all over India (Sequeira 2013). It also supports the local communities in maintaining the beauty products. Its vision has the company to reach the hearts of many people especially to the women. Opportunities and Threat Analysis Loreal is very efficient in formulating organic cosmetic products. These have strong demand in all over the world. As LOreal uses less chemicals , the product is very fruitful for the people who are very conscious of their health and do not want to use anything which hampers the skin and health. Moreover, LOreal also provides great scope to the employees. It also provides a luxurious scope to the customers with different innovative s products for the customers. The threats of the Loreal Company are that during the time of recession it has a huge impact in the selling of the products. This is because LOreal are cosmetic products, so s during the time of global economic crisis people will feel reluctant to buy the beauty products. Hence, during any kind of economic crisis the company will be unable to attract customers from the global market. It can be considered there are various brands in the cosmetic industry .Moreover new brands are still coming in the market. LOreal has to compete with the international brands like Mac, Estee Lauder, Kao and others. Some customers tend to change their brands from time to time. The preference changes or some people like to use new things, in that case it can be considered that this is one of the major threat to LOreal. The reason behind this is if the company every time has to change its products design and framework, then it has to invest a huge range of money in the research and development and in the manufacturing of the products. Five Forces Analysis Competitive Rivalry The LOreal company concentrates on the competitive advantage of the company. For this reason it tries to invest on research and development for the innovation of new types of products. There are certain conditions for which high competition occurs (Dubois, 2017). They are mainly huge number of consumer brand crisis , global financial crisis, sometimes every LOreal product up to same quantity is not there in the market , rival group selling the same products. The rival groups of this company are Garnier, Vella, Avon and others. It can be said that LOreal in its marketing and promotional strategy mainly take the help of media and renowned celebrities in different countries who promote this brand. Estee Luder and Clinique has also started to promote it products by advertising s and promoting tools in including billboard, guerilla and outdoor advertisements suppose using local buses with the brand name and the use of its products (Dubois 2017). Buyer Power It can be said when the customers who are much loyal and favoured for the products and services of the company. These type of customers buy the products even when the price of the product changes or elastic (Milbradt 2013). This is called inelastic demand. This is the strength of the LOreal. There are customers who regularly buy the Loreal products because it suit their skin and hair. As the quantity of inelastic customer increases then there is much less chance of bargaining for the products (Arjalis and Mundy 2013). Bargaining Leverageis the power that one side of a negotiation has to influence the other side to move closer to accept their negotiation. But the customers who buy this type of products do not have any This is one of the positive aspects of the LOreal company . Supplier Power Supply chain management is one of the important factors of any industry. Any industry may be it is cosmetic products or others it needs basic raw material . Thus there is a group of suppliers which delivers the materials for the production of the products or particular services. If a company has a huge range of supplies then the bargaining power of the suppliers become much less (Daft 2015). Fortunately the LOreal company have innumerable supplier so the bargaining power of the suppliers of this company are much less. If the company has a huge reputation, large quantity of customers and huge amount of profit then the suppliers does not have much strength on bargaining. This is because the company will attract huge number of suppliers. If the opposite happens then it becomes the companys overall rating is not good. New Entrants A new entry signifies the entry of new products to the global market. In order to compete or put barriers to the entry of the products and services some marketing strategies needed to be followed. For example the LOreal company has to increase its quality, marketing strategies and reasonable pricing which paves the way to remain consistent in the market. This is because sometimes the new companies or firms enter into the market because of high- quality products, reasonable price and proper advertisement and promotion. The competitor of the LOreal are Avon, Revlon, Garnier and others. This is the international brands, there are also local brands of every region . LOreal has to face a tough competition but it has able to retain its market-value because of its worldwide recognition. Though they have global market but they can influence the local region. They manufacture things for different age groups an d different purpose. Thus, in this way they attract huge number of customers. The c ompany does not make any compromise with the quality of the products and distribution system. Threat of Substitution A threat of substitutes occurs when a products demand is much affected by the change of the cost of a substitute product. This is because the chemicals in the shampoo and other bath and body products is much harmful not only for skin but also for the health of the customers. Thus, for this reason many industries are producing cosmetics of herbs so that it does not hamper the customers. LOreal tries to give organic products, but they are not totally free of chemicals. Inspite of its worldwide recognition many herbal companies are coming into the market (Aires, Drillon and Viravau ). Lotus Herbal which is Indias leading herbal company is nowadays getting reward in countries other than India. Conclusion One can know from the five porter analysis that though LOreal product is worldwide famous, it is very much important to take certain marketing strategies so that it can help them to maintain their reputation and consistency every time. It can be considered that every time or the other a new cosmetic product is launched by the other beauty companies, every company in order to compete in the global market will apply different other strategies and inventive designs or raw material to manufacture their products. So, the LOreal company have to be very particular about their marketing strategies which includes 4Ps of marketing. Promotion of the product by the help of TVs, internet and hoardings are much necessary (Werbach 2013). The product of LOreal is spread to different other regions of world. So, the managers of the company have to decide the price of the product accordingly. The other P which means product has to be very innovative, healthy and reasonable for people of all sections. Another P is place, the leaders and mangers of the company have to select such a emerging market that it can earn profit and fame to the company. Marketing Mix Marketing Mix is mainly used to provide proper offer to the customer, to make the offer accessible and convenient to the customers. Sometimes the company faces cultural restrictions to attain its own goal. It is discussed in the conclusion about four elements of marketing mix such as promotions, packaging display, physical handling, fact finding and analysis , personal selling, advertisement, branding and product planning, channels of distribution and servicing. It is explained in the conclusion about the four elements of product, place, promotion, and Price. Apart from this issues, LOreal company has shown considerable improvement in its channel of distribution while spreading the product into different other regions and opening outlet in various other places across the world. The service quality of the company is very much good because it tries to innovate and research and manufacture different new cosmetic things for the needs of different consumers. The most important thing need to be done by the LOreal company is to analysis its profit and loss of the products launched by it. This will help the company to focus on its weakness and strenghth. Pestel Analysis Pestel analysis stands for "Political, Economic, Social, Technological, Environmental and Legal analysis". It is a part of the external analysis and market research. It mainly provides information regarding the macro factors of the society. Political factors:- LOreal can be threatened by the political rules of the different companies . Specifically, political factors include areas such as tax policy, labour law, environmental law, trade restrictions, tariffs, and political stability. Political factors may also include restrictions on import of goods and services which the government wants to provide (Tournois and Tournois 2016). The legislation for advertising and promoting the products in particular region also affects LOreal. There is also problem regarding the factor that if s LOreal makes product of chemical elements, the company can be attacked by the government measures in that case. But it does not do it , so it has a less chance of threatening. Economic factors- The economic factors includes economic growth, interest rates, exchange rates and the inflation rate in all the countries, which they are operating in. L'Oreal in the year 2004 was been affected by the continues weakness of the dollar and other currencies. The ups and down of the currencies affect a market of a company , exchange rates also play a huge role in it. Social factors - L'Oreal's business in worldwide recognized. It is highly associated with the life of the communities in which they resides. Other factors like culture, health consciousness, population growth rate, age distribution, career decision is inclusive of all the social elements. Societal factors always keeps on changing. Technological factors - It includes the ecological and environmental aspects, such as RD activity, and about the transformation of the technological factors. . (Eugene Scheller Some of the innovation has been adopted by the LOreal company from the ingredients of Eugene Scheller and has transformed the technological innovation in many ways. This technological change can bring restraints to entry, less efficient production level and influence in outsourcing decisions. Finally, it can be said that technological shifts can affect costs, quality, and the elements of the product (Velsquez and Meunier 2017). Environmental factors - The main factor includes weather, climate, and climate change, which is especially affects the industries such as tourism, farming, and insurance. The company should be more conscious about the environmental factors and must prevent themselves from violating the environmental regulations. It enhances the Corporate Social Responsibility of the Company and also helps to remain ahead of other companies (Kirkwood and Walton, 2014). Legal factors - It include discrimination law, consumer law, antitrust law, employment law, and health and safety law (McGugan et al. 2016). The Legislations are the important factors which can impact positively or negatively to the company. Conclusion In the end, it can be inferred that apart from the marketing strategy, LOreal must follow the different aspects of corporate social responsibility. 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