Here’s How L’Oreal Can Benefit From Working With Influencers

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Recently, L’Oreal (OTC:LRLCY) signed up five British beauty bloggers as influencers to create online content for its products on an ongoing basis. These bloggers, who are termed as its “beauty squad” by the company, have a combined reach of 5.5 million viewers and will be revealing the brands latest products, creating engaging content and attending key beauty events. As consumers continue to remain highly engaged in social media, they are looking for content on new products, “how to” guides and related information online. Through influencers, L’Oreal  is looking  to provide this information to its consumers and better engage them. The company looks to build a direct relationship with its consumers, actively pursuing digital initiatives and engaging its users on social media.  Given these factors, we believe this strategy should prove to be an effective marketing tool, one that does not get impacted by ad blockers. As consumers get information about the company’s products from beauty bloggers, they will be able to identify the right product for themselves, leading to a more personalized experience. This strategy can also help the company generate better insights and feedback on their products both from the influencers and the consumers, driving product improvement in the long term.

Better Insights, Product Improvement

L’Oreal is looking to build a relationship with its influencers and use them on a long term basis rather than for one-off events. It plans to engage the influencers in creating content that helps consumers to identify the right product for themselves and get beauty advice online. The company believes that influencers can be a credible voice for its brand and can challenge the way it creates products and campaigns. As the beauty influencers work with several brands, they can provide useful insights on how the products can be improved and tips on better campaigns to engage consumers.  We believe as L’Oreal constantly looks at product innovation to drive growth, this strategy can provide the company with useful feedback from both direct consumers and influencers to further strengthen and improve its product offerings.

Online Marketing Through Customer Engagement

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L’Oreal has always been ahead of competition in using social media as a marketing tool. Its “beauty squad” of influencers will use several social media tools including YouTube videos to reach out to audiences. The company’s strategy is to make its marketing experience less interuptive, more immersive, more rewarding and more personalized. As ad blocking apps increase, this strategy of creating online content to engage users should work to L’Oreal’s advantage. The content created by bloggers will be categorized as “useful information” by users and should see more traction, in addition to not being impacted by ad blockers. Coming from known beauty bloggers it should also add credibility to the company’s brand.

We believe L’Oreal’s strategy to develop long term relationships with influencers would provide a dual advantage to the company. It will ensure that company is able to engage its consumers with meaningful online content without being impacted by ad blockers. It will also provide the company with insightful feedback on its products, leading to product improvement and innovation in the long term.

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