Hi Guys,
In my latest marketing class the lecture was focused on
SWOT and PEST and how effective these tools are in the world of business. SWOT:
meaning Strengths, Weaknesses,
Opportunities and Threats. And PEST: meaning Political, Economic, Social, and
Technological. All of which are key factors businesses need to look at
when coming up with a new product or service. I had already known of the two
before the class and I believe they are extremely effective ways of
brainstorming.
I researched some SWOTS and PESTS and one that stood out
to me was the L’Oréal SWOT from 2012. Here the euromonitor.com go into great
detail about beauty and personal care with the L’Oréal Groupe. I learned a lot
from this site as it was an interesting read as I use L’Oréal products
daily.
Innovation was pointed out as strength as L’Oréal manages many
different brands ranging from make-up to skin care and so on. One of the most
popular skincare would be the clarosonic which blew up over two years ago. A
nod to the pricing tiers was also mentioned as a strength because L’Oréal has a
variety of different products which all range in pricing.
A weakness that
was pointed out in this report was hair care, back in 2012 there was not really
much there. However, last year with the help of youtubers and advertisements
the
L’Oréal shampoo and conditioners where a must have
product for several months. With regards to opportunities the chance to further develop their brand with
organics is an option. Even though Sanoflore is L’Oréal’s organic brand at the
moment there is still a gap for more organic products. People are now more than
ever are becoming more health conscious and would opt to go organic
whenever they could.
As a threat competition
in emerging markets was mentioned. This of course is an obvious threat but
every business has competition. L’Oréal has the brand and quality that in my
opinion wins over a variety of others.
They range from high end brands such as Giorgio Armani
and YSL, to more consumer and drugstore brands like L’Oréal Paris, Essie
and Garnier. This range in products means there is something for everyone
depending on your personality and budget. I think L’Oréal is a power brand that
will continue to thrive.
The link to the euromonitor report can be found here: http://www.euromonitor.com//medialibrary/PDF/LOreal-Company-Profile-SWOT-Analysis.pdf
