L'Oréal USA: Digitally Optimizing Consumer Insights
(8 pages of text)
Nima Gohil, head of the new digital and creative consumer research department at L’Oréal USA (L’Oréal), was preparing for the upcoming January 2016 board meeting at L’Oréal’s research and innovation headquarters in Clark, New Jersey. L’Oréal’s competitors were using new digital media to highlight beauty products to current and new users, and L’Oréal was under pressure to develop a better way to connect with consumers to maintain—if not grow—market share. Top management had also urged Gohil’s department to reduce time and costs when collecting insights from consumers.
Gohil focused on the hair care consumer segments, where she thought it was critical for L’Oréal to address and fully commit to the digital transformation that was being adopted by many other industries. She had only a few weeks to complete her assessments of L’Oréal’s digital strategy and assets and to prepare a functional recommendation to upper management.
This case can be used in both undergraduate- and graduate-level courses related to business, marketing strategy, consumer insights and loyalty, social media marketing, and digital business transformation. After working through the case and assignment questions, students will be able to do the following:
- Detail a market research strategy to gain insights from consumers in a marketplace driven by digital transformation.
- Understand the challenges of operating in a mature industry while competing in a digital-infused market.
- Examine how an evolving digital landscape creates both strategic opportunities (connecting with customers) and threats (using collected inputs).
United States, Large, 2016
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