Explore and consult the situation of Loreal transformation.
L’Oréal first embarked on its digital transformation journey more than a decade ago. It is one of the largest consumer goods companies in the world, with a global footprint of forty factories that manufacture more than six billion units a year. It has more than 50,000 suppliers upstream and over 500,000 delivery points. L’Oreal has thirty-six brands, selling products in 150 countries with support of 88,000 employees that continuously lead in supply chain, innovation, and customer satisfaction.
L’oreal has four major divisions. 1) Loreal Luxe- High end cosmetics, focused on prestige and sustainability.2) Consumer Products- Cosmetics sold at mass and drug retail, accessible to all.3) Active Cosmetics- Nutraceuticals, Dermatologist products address acne and other concerns4) Professional Products- Professional Hair Care, caters to professionals with hair care focus.
L’oreal has always been known for their innovation and leaning in to provide better products for their customers. Additionally, they have been creative in their marketing efforts – continuously testing new things to reach new customers to give them the support and empower them in the spirit of their tagline, “Because You’re Worth It.” This beauty marketing push was evident in their originally unique beauty posters from artists in the early last century and now is showing up to meet the current customer demands of using tech to provide a glimpse of what beauty could be.
A big part of this case is about the current and future activities of beauty tech. Beauty tech is a relatively new term that has become to be known as the integration of technology into cosmetics and beauty products.1 Similar to what we discussed earlier in the course, Beauty Tech is akin to what the smart toothbrush does by using tech to collect consumer information and make recommendations. Beauty focused consumer electronic appliances and/or VR/AR applications can extend the consumption ecosystem with more data and algorithm based recommendations that can create initial intrigue, deliver value, and build loyalty.
Your team’s objective is to have a fact based approach to analyzing the L’Oreal digitalization efforts and providing some consultation of what they need to do next.
Study score component:
What Detail Points
Case background Give background of industry and strategic choices
10
Analysis of Digital Strategy
Analyze their strategy, highlight positives and negatives. Assess
digital maturity
20
Data Analysis/ Visualizations
Sound logical analysis of data provided to create relevant and
helpful visualizations
20
Recommendations Proposal of a detailed action plan, provide logical evidence
15
Presentation Skills Organization, Telling a story 20
Presentation Format Easy to understand 5
Peer Review See below 10
Total All components 100
Components for peer review grading rubric
# Description Score
1 Preparation 3
2 Contribution 3
3 Collaboration 4
# Total 10
Final Presentation
As a consultant, you want to be able to provide a third party view of L’Oreal’s business, digital and other strategies.
Complete documentation of the project in PowerPoint with no report required
• Executive Summary (Taylor TB)• Digital Strategy overview & Analysis (Taylor TB)• Digital Governance (Taylor T)• Analysis (Taylor T)
o Include relevant visuals. (Taylor T)o Define channel and beauty tech trends. (Ron B)o Evidence supporting insights and recommendations (Ron B)
• Recommendations (Everyone gives one)• Peer review: Can send this via email to me separately with the breakdown.
• Appendices (labelled) (Everyone)o Back up of visualizations
Questions to build your presentation
1. Provide an overview of Loreal’s reasons for a digital transformation with the focuson leadership leading the charge. (Taylor TB)
2. How did L’Oreal foster innovation through goal setting? (Taylor TB)
3. Describe the digital organization governance structure and the challenges. Whatwere the changes of setting up a global digital governance structure? (Taylor T)
4. Highlight any other key developments that allowed L’Oreal to transform from aless mature digitalization level to where they are now as a leader in their industry.(Taylor T)
5. Two of the major shifts in the market is that consumers are exploring newchannels for beauty products and that beauty tech will have a bigger influence onbrands and products chosen. Use the data provided to summarize your insightson these two trends. (Taylor T)