Research on Multinational Cosmetic Corporations' Business Models and Marketing Strategies Based on the 4P Theory: A Case Study of L'Oréal Group

Abstract

With the development of the cosmetic industry, the competition among cosmetic groups and brands is becoming more and more intense. In the process of operation, enterprises not only need to build a reasonable business system but also adopt effective marketing means to ensure the attractiveness of their products. L'Oréal Group, as a leading company in the cosmetics industry, has high-quality products and an excellent business system. After more than one hundred years of development, L'Oréal Group's production and sales network spreads all over the world, with a stable customer base and strong profitability. Based on the literature research and the application of 4P theory, this paper analyzes L'Oréal Group's operation strategy and marketing strategy separately to explore its advantages. It is found that L'Oréal Group's pyramid brand layout guides its product, price, place, and promotion strategies, and it uses mergers and acquisitions to continuously expand the number of brands and capture a larger range of global markets. This well-established operational approach has helped the L'Oréal Group to continuously expand its sales and increase its influence in the world.