Sales Promotion and Advertising

The primary purpose of this assignment is to compare two companies that operate in the global beauty industry, namely, Procter and Gamble and L’Oreal Paris. First, the paper compares the two selected companies’ sales promotions and advertising. Second, the paper evaluates how sales promotion is coordinated with advertising in these companies. Third, the assignment compares the role of consumer sales promotion programs and marketing communications objectives of the two selected companies.

Procter & Gamble and L’Oreal belong to companies spending the most on advertising and promotions. In 2011, Proctor & Gamble spent $9,210 million on advertising (The Procter & Gamble Company, 2012), which constitutes an approximate 11% of the company’s net sales. L’Oreal spent 6,292 million Euros (30.9% of sales) on advertising and promotion in 2011 (L’Oreal, 2011). Brands owned by the two multinational corporations are tailored to the needs of different markets. L’Oreal targets mass beauty market needs with its L’Oreal Paris, Garnier, Maybelline, Essie, and SoftSheen-Carson brands. Procter and Gamble that operates in household cleaning products market, pet food market, and personal care products market targets the needs of mass market customers with its Gillette, Head & Shoulders, Olay, Pantene, Clairol, CoverGirl, Max Factor, and multiple other brands (including local brands). The primary difference between the two companies’ advertising and promotions is that L’Oreal collects a global portfolio of brands that are diverse geographically and in terms of customer perception. This is why in 2011 L’Oreal invested 41% of its overall investments (totalling 866 million Euros) into marketing (including POS, moulds, and stores). The primary strategy employed by L’Oreal with all its brands (that becomes the primary advertising message and guides promotions) is to make brands symbolize their country of origin. For example, when in 1997 Maybelline Great Finish nail enamel advertising strategy was developed, the product was marketed as nail enamel that dried on the go, and was thus used by urban American women. Common advertising strategies for both companies include publications in magazines such as Shape, Cosmopolitan, or Good Housekeeping; coupons; discounts; and bulk sales or promotional sets (for example, Procter & Gamble actively bundles mono-branded goods as Christmas gifts).

Sales promotions and advertising plans should be coordinated. This typically happens through selecting a unifying theme for advertising and promotions campaigns. An example of integrated promotions and advertising campaign by Procter & Gamble is the appearance of CoverGirl brand in the CW network’s America’s Next Top Model. The brand was carefully inserted in the show’s content. Furthermore, in the end of each episode the finalists were photographed for advertisement of CoverGirl products. L’Oreal coordinates its advertising and promotional efforts through strategic partnerships with retailers. For example, the company’s central theme of promoting Maybelline was the famous slogan “Maybe she’s born with it. Maybe, it’s Maybelline”. Furthermore, at present L’Oreal actively sells promotional bundles that consist of a L’Oreal Paris product (typically, a lotion) and the newly advertised Maybelline mascara. Therefore, advertising and promotional strategies of the two companies are coordinated. Furthermore, they are closely linked to each other.

The primary objective of marketing communications campaigns of L’Oreal is to position each brand according to its cultural origin. For example, the primary advertising message for Lancome brand in 2011 was its universal femininity and French cultural origin. The primary objective of marketing communications of Procter & Gamble is to demonstrate understanding of consumer needs and fulfil them with innovative products.