Currently, the Chinese consumers are experiencing a remarkable increment in their purchasing power. 501) further argues that the ‘varying environments may rule out uniform marketing strategies across countries’.Īccording to a study conducted by the World Bank, it is projected that China will outdo the United States as the largest world economy in a few decades to come. Such an adjustment will enhance an organisation’s competitive edge. Consequently, it is imperative for marketers to ensure that their products and services align with the prevailing market changes. The external business environment is characterised by diverse market changes.įirms do not have control of most external forces such as technological changes. The uncontrollable factors in the international environment relate to forces emanating from the political, social, economic, technological, cultural, ethical, competition, and the legal environments. However, surviving in such a market requires an organisation to align its marketing strategies such as marketing mix to conform to the prevailing market needs. Firms that have adopted the concept of internationalisation have trouble in understanding the international market.
501) asserts that the ‘existence of uncontrollable and controllable factors makes international marketing more complex as compared to domestic marketing’.
Understanding the prevailing market condition is one of the ways through which organisations can remain competitive.Īswathappa (2010, p. It is imperative for businesses to develop sufficient competitiveness in order to stay relevant in the international market. The world is experiencing a growing trend with regard to the rate of inter-connections and inter-dependencies (Andexter 2008). The paper also recommends the adjustments that L’Oreal should consider in order to enhance its market dominance. This paper entails a comprehensive analysis of L’Oreal’s marketing efforts in China. Despite its localisation efforts, the firm has not fully localised all its products such as Yue Sai, which is still manufactured in the international market.
LOREAL POWER MIX BASE PROFESSIONAL
The manufacturing centres enable L’Oreal to produce most of its professional and mass products, which allows the firm’s products to align with the market needs. 178) argues that the ‘degree of market localisation is reflected in the effort made by an organisation to match local customer needs or requirements and it is measured by its local market orientation’. Moreover, the firm has established manufacturing centres at Yichang and Suzhou.
The firm has set up a research and innovation centre in China. In a bid to market its products successfully in the Chinese market, L’Oreal has adopted the concept of localisation in its marketing processes. Likewise, L’Oreal has introduced most of its brands in the Chinese market such as Maybelline New York and Lancome. Procter & Gamble leads the market as it has introduced all its major brands in the Chinese market. Currently, the firm ranks as the second largest skincare and beauty firm in China. The firm has targeted China as one of its marketing destinations. L’Oreal has adopted internationalisation as one its business level strategies in an effort to maximise its profits. Currently, L’Oreal ranks as the largest cosmetic organisation in the world. The firm has managed to penetrate the global beauty and cosmetic market. The firm’s operations involve the production of diverse cosmetic and beauty products. L’Oreal was established in 1909 in the personal care industry in France.
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