Published by MBA Skool Team, Last Updated: February 08, 2019
Marketing Strategy of L'Occitane analyses the brand with the marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion). There are several marketing strategies like product innovation, pricing approach, promotion planning etc. These business strategies, based on L'Occitane marketing mix, help the brand succeed.
L'Occitane marketing strategy helps the brand/company to position itself competitively in the market and achieve its business goals & objectives.
Let us start the L'Occitane Marketing Strategy & Mix to understand its product, pricing, advertising & distribution strategies:
L'Occitane Product Strategy:
The product strategy and mix in L'Occitane marketing strategy can be explained as follows:
L'Occitane is one of the leading beauty and skin care products for women. Its product is targeted for upper-middle-class and upper-class women who are fond of luxury and natural products. Its marketing mix product portfolio includes fragrances, skincare, makeup, bath and body products, soaps, hair products like shampoos, oils, conditioners, etc. L'Occitane brand's products focus is on being natural, simplistic and qualitative. Its original brand L'Occitane en provence deals with fragrances, skincare, haircare and body and bath ranges with a focus on qualitative ingredients. This brand's USP is its unique know-how of the regions local artisans and their ingredients having an authentic feel. Its brand Melvita was acquired by the company later. It was started as a brand by beekeepers around 32 years ago. It has a focus on natural products based out of the ingredients it collects South of France. It has more than 170 natural products and is one of the regions top organic product brands. Erborian is its brand offering skin care products with the use of Korean herbs and techniques. It has a specialty of creating hybrid products which bridge the gap between skincare and makeup. L'Occitane au bresil has products focused on Brasil and its natural ingredients with an emphasis on its culture. It also deals with haircare, body care and fragrances. It is one of the fastest growing brands among the 5 and was started in 2013.
L'Occitane Price/Pricing Strategy:
Below is the pricing strategy in L'Occitane marketing strategy:
L'Occitane has premium pricing with it being sold with the upper-middle-class and upper-class women as its target audiences.
It also gives occasional seasonal discounts with festive offers and sale on special occasions. Since it is a differentiated brand and because the beauty segment usually has loyal customers, it doesn't follow a competitive pricing model. Its products in India are ranged from $10 for a 12ml lip balm to some products also well over $200. L'Occitane has a wide range of products and hence has products in different ranges with each segment priced differently.
L'Occitane Place & Distribution Strategy:
Following is the distribution strategy in the L'Occitane marketing mix:
L'Occitane has over 3100 stores globally and with over 8300 employees all over the world, it is an established name in the natural luxury skincare, beauty and home products. It has a robust supply chain network with a fleet of exclusive distributors. Its USP is its efficient manufacturing setup with extracting raw materials, using innovative, formulas, mixing of ingredients and deriving the final products done in the factory in a smooth and operations-centric approach. Its manufacturing factory has a special focus on reducing environmental impact and for sustainable development. Its manufacturing setup is location-based and is based out of France and is specialised to produce products with local special ingredients. L'Occitane has a long-term partnership with local suppliers where it not only supplies them the products but also takes special care in explaining the products specifications and the special features. It focuses on small but integrated networks of suppliers to be able to better manage and trace their ingredients and subsequently its products. L'Occitane procures its raw materials from local players thereby supporting the local suppliers and building a relationship on trust and sustainability.
The brand is present mostly in stores but also has a good online presence.
L'Occitane Promotion & Advertising Strategy:
The promotional and advertising strategy in the L'Occitane marketing strategy is as follows:
L'Occitane focuses on a wide range of media coverage. A clever mobile-marketing strategy is being implemented by L'Occitane. It worked in tandem with advertising and digital marketeers Threepipe. Uses technology cleverly to promote its brand. Used technology based proximity/location targeting for stores with higher footfall in the UK and other places in order to drive brand engagement and customer interaction programmes. This strategy showed great results with more than 7% increase in footfall sales. Uses brand awareness drives and customer engagement programmes. Uses digital advertisements more than the traditional ads. Uses mobile-based ads which are in-app and customised for customers. Offers promotional discounts and offers in festive seasons. Uses different media for promotion including print and mostly digital media. Hence this completes the marketing mix of L'Occitane.
L'Occitane also known as L'Occitane en Provence was started in 1976 in France. L'Occitane also means women of Occitan, a region in Provence in Europe. L'Occitane is a retailer of beauty, body and home products. It has 5 global natural brands like Erborian, Melvita, L'Occitane Eau bresil, LimeLife by Alcone and finally L'Occitane en Provence.
It had an operating profit of 160 million pounds. With more than 8300 employees all over the world and a presence in more than 88 countries, its prime focus is on delivering natural products and cosmetic luxury products to its customers.
This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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