International Companies And Their Presence On Chinese Social Networking Sites L’Oreal And Sina Weibo:Casestudy Of A Product Launch

The following thesis looks at L’Oreal Paris China and the launch of its skin care product line "Skin Deep" in China via Chinese social networking sites."Skin Deep" was introduced to the Chinese market in December2012with the help of a48-hour campaign, a collaboration with the Chinese celebrity Li Yuchun, and posts and comments on Sina Weibo, on BBS, on three major video portals and also on verticals. According to L’Oreal, it was the first time in China that a consumer product like this was launched by relying solely on non-traditional media such as social networking sites. For this thesis, the author conducted interviews with campaign managers at L’Oreal, analyzed posts and comments on Sina Weibo and worked with a focus group at Fudan University to gain a deeper understanding of the campaign, its advantages and its shortfalls.The thesis aims to answer three research questions, namely1) Does L’Oreal efficiently make use of Chinese social networking sites?;2) What audience reactions did the campaign trigger?;and3) How did the campaign on Sina Weibo help to boost sales and strengthen brand awareness and brand recognition?The analysis found that L’Oreal benefitted from introducing the product with this new Chinaapproach, resulting in a smaller budget being spent on advertising, more direct consumer contact exposure, more "social buzz" and more "traceability". At the same time, it became obvious that L’Oreal is still learning how to design a successful social media strategy in China. Its unwillingness to really engage with consumers by answering questions and by responding to comments were weaknesses that came to light during the research. However, the company considers the campaign successful and a milestone for future product launches.