L'Oreal: Building its empire in Indonesia through its luxury brand, LancМ«me

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Marketing Strategy Outline Any marketing strategy will depend on availability of clientele and the spending capacity of the consumer. Promotion of any ‘Luxury Cosmetic’ in the market therefore involves thorough research of socio-cultural-economical environment of the target population.


L’Oreal recently announced a plan to build its largest ever factory in Indonesia to cater to the growing Asian market for L’Oreal products with an intention to reach an envious target of producing 500 million units a year (McDougall, 2011). Indonesia has a thriving, educated young population, good life expectancy at an average of 70 years and therefore has great potential for the marketing of cosmetic products. Skin lightening products’ have high potential for being promoted in the cosmetics’ section as the ethnic constitution of the country comprises mostly of brown skinned people. The major thrust for this marketing endeavor is therefore on the sale of ‘Whitening Lumilight Spa’s in combination with ‘Lancome Whitening Cream,’ the current market segment for such products being a large one. 1. Objective: This strategy for marketing whitening products manufactured by L’Oreal is selected because this particular cosmetics’ giant is a world leader in such products, and local manufacturing allows for easy placement of the products in the market. Moreover, women in Indonesia usually have brown skin which makes them harbor desires for a fairer skin. Current international exposure to good looking female models and the desire to look beautiful is omnipresent in Indonesian women. Whitening products are therefore easy to sell. 2. ...
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