Evaluating L’Oréal

Marketing evaluation

Today there is obviously a tendency in the world of business for estimating the influence of marketing activities. The evaluation of marketing is one of the most significant business requirements currently as businesses encounter increasing tension to show financial returns throughout institution from stockholders, depositors, senior managers and board of directors (Davis 2013). Very often senior managers think about the effectiveness of the company’s marketing and how to evaluate or measure it. BUT, Davis (2013) states that if manager wants efficiently to estimate marketing, he or she must start with the comprehension of the environment of their business position. Hence, for manager it is highly important to understand relationships related with the acquiring customers. Below you can see the connection between firm and clients.



Figure shows that leaders in business must have a comprehensible feeling of corporate rock, or insight, which directs the whole business for the long-distance. 

Today in my blog I will talk about L’Oréal Company and their financial and memory metrics.



L’Oréal managers have a multiplicity of tests, liabilities, demands, and hope to accomplish their tasks successfully. Company focuses not only on communication programs and creativity, but also on demands of complex globalizing world of business. Overall analysis of the company shows that L’Oréal takes heed to corporate-level measures. Talking about financial performance it is important to understand how marketing facilitates to the general success (Mintz & Currim 2013).

Jean-Paul Agon, Chairman and Chief Executive Officer

We have stepped up our metamorphosis to the New L’Oréal: more universal, more digital and more sustainable


Financial metrics

L’Oréal has a strong and balanced business model. Company registered a robust growth in 2015. L’Oréal suggests that it was sustained by a positive monetary effect, and outstripped the market of beauty in 3 of 4 Divisions (L’Oréal 2015). The increase in sales, dividend and profit per share show the excellence of the current business model.

L’Oréal has strong sales to outlast and profits to prosper. Return on sales is very important indicator of the profitableness and annual reports that are distributed on company’s website show business prosperity. For any business it is very important to review marketing efforts over time. Company grows and focuses more on increase of profits, makes use of investments and diligence to manufacture its current line of products.


Return on sales evaluates the financial effectiveness of L’Oréal latest sales endeavors. In addition, high return on sales illustrates productive operational efficiency. Although that prices on the products increase with every year, company adds sufficient value into the commodity. For example, company respects the remarkable nature of each region of the world and innovate products in appliance with the culture, demand and priorities of Brazilian, Indian and Chinese consumers (Allured Business Media 2010).


It’s no wonder that increase in earnings per share takes place due to the politic of the company. Brand puts consumers at the core of novation and research. Company has created the “Consumer Insight” International and regional division.


Customer value and Memory metrics

L’Oréal succeeds not only because they provide a high-quality beauty products, but because   support customers throughout their lives, which creates a strong loyalty for both men and women. Moreover, L’Oréal always emphasize on the fact that company was founded by a scientist and that for them innovation is essential because beauty is an endless quest that constantly requires a higher level of performance.


This modest reminder that constantly sounds in company’s advertisements and news creates a strong brand awareness and association of the brand with the innovation and health (Zambardino & Goodfellow 2007).


In other words customers feel that brand takes care of them. Company gives customers self-confidence, welfare and let them be open towards world. 

As a result, this leads to the intention to buy products. L’Oréal tries to understand people, their culture, listens to customers and their demands, apprehending humans traditions. Probably, without this passion to explore humanity brand could not develop and blossom.  

Reference list:

Allured Business Media 2010, L’Oréal Unveils New Research and Innovation Strategy,     Allured Business Media, retrieved 18 May 2016,                                                                              < http://www.gcimagazine.com/business/management/innovation/111854374.html&gt; .

 Davis, J1 2013, Measuring Marketing. [Electronic Resource] : 110+ Key Metrics Every Marketer Needs, n.p.: Singapore : John Wiley & Sons Singapore, 2013., DEAKIN UNIV LIBRARY’s Catalog, retrieved 20 May 2016.

L’Oréal 2015, Annual report 2015, L’Oréal, retrieved 21 May 2016, <http://www.loreal-finance.com/en/annual-report-2015/10-highlights&gt; .

L’Oréal 2016, OUR VALUES AND ETHICAL PRINCIPLES, L’Oréal, retrieved 17 May 2016, <http://www.loreal.com/group/who-we-are/our-values-and-ethical-principles&gt; .

Mintz, O & Currim, I 2013, ‘What Drives Managerial Use of Marketing and Financial Metrics and Does Metric Use Affect Performance of Marketing-Mix Activities?’, Journal Of Marketing, 77, 2, pp. 17-40, retrieved 19 May 2016, Business Source Complete.

Zambardino, A, & Goodfellow, J 2007, ‘Being ‘Affective’ in Branding?’, Journal Of Marketing Management, 23, 1/2, p. 27, retrieved 20 May 2016, EBSCOhost.




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