Marketing Strategy - L'Oreal

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• khanrafi 2 months ago

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Marketing Strategy - L’Oreal - Presentation Transcript
1. NETHERLANDS MARKETING STRATEGY 1
2. 2 L’Oréal’s Objective in the Netherlands is to increase Garnier’s brand presence •
Garnier currently offers one product in the Dutch market... • How can Garnier
successfully grow market presence without negatively impacting L’Oréal’s current
market share?
3. 3 L’Oréal’s Decision Criteria • Increase brand awareness for the Garnier family brands •
Minimize cannibalization from the introduction of Garnier products • Meet the needs of
the Dutch market
4. 4 We recommend L’Oreal develop its products to better suit the market’s needs • Short-
run strategy (0-12 months) • Launch Garnier Synergie skin care products • Increase
L’Oréal Recital’s distribution • Long-term strategy (12-36 months) • Develop improved
products for L’Oréal and Garnier • Wait and see with Synergie anti-aging skin care line
5. 5 Market analysis Company analysis Recommendation Implementation Risk Mitigation
Expected Results Conclusion
6. A high per capital income and growing number of women in 6 the workplace makes the
Netherlands an attractive market Fastest growing population: Age 25 or older segment
Increasing number of Dutch women working 29% labor force participation for women
(and growing) 4th in per capita income but 6th in per capita spending on cosmetics and
toiletries Price conscious
7. 7 Accurate colour results are a major value driver for Dutch women Volume growing at
an annual rate of 15% 46% of Dutch Women used hair colorant (up from 27%) Brand
loyal Preference for lighter shades Permanent colorant (73%) Semi-permanent colorants
Grew from 12% to 27% Fashion driven Demand for warmer shades
8. 8 Dutch women care about natural ingredients in their cosmetics and skin care products
2nd-largest sector of Dutch cosmetics Volume growth: 12% Sales growth: 16% 2.5
million Dutch women aged 15 to 65 use skin care products Consumers are brand loyal:
Performance matters Loyalty increases with age Products heavily advertised and sold on
the basis of brand image Market share determined by share of voice Increased interest in
natural products
9. 9 Market analysis Company analysis Recommendation Implementation Risk Mitigation
Expected Results Conclusion
10. 10 Current International Position shows a strong standing for both L’Oreal and Garnier
L’OREAL GARNIER Largest cosmetics Independent operation manufacturer worldwide
Belle Couleur Subsidiaries in over 100 Permanent hair color countries Successful in
France for $6.8 billion in sales (+12%) over two decades $417 million in profits Market
leader (+14%) Synergie Sales breakdown: Skin care products France: 24% Successfully
launched in Rest of Europe: 42% France
11. 11 Garnier’s Current Position in Netherlands suggests low brand awareness Operates
under same division as L’Oréal Garnier Currently manages one brand in the sun screen
category Minimal brand presence Brand is well perceived by Dutch consumers Plénitude:
A mid-market, high quality skin care product L’Oréal Recital: A high-end, high quality
hair colouring product Recital is losing market share due to aggressive distribution
strategy, private-label brands and salon services
12. 12 Market analysis Company analysis Product lines Recommendation Implementation
Risk Mitigation Expected Results Conclusion
13. 13 L’Oréal Recital’s declining market share can explained by an increasingly competitive
market Strengths Current market leader with one-third of the market No clear positioning
statement Weaknesses Market share decreasing over the past two years No semi-
permanent formulation To protect current market share, L’Oréal should develop a semi-
permanent formula for Recital to meet market demands
14. 14 Avoiding cannibalizing by introducing a new product: L’Oréal Plénitude Reputation
for high quality Strengths Anti-aging line appeals to older demographic Unclear
differentiation Weaknesses Threat of cannibalization from Synergie To differentiate
Plénitude from Synergie, L’Oréal should emphasize its anti-aging benefits to women 35
years and older
15. 15 Garnier Belle Couleur must be reformulated to meet the needs of the target market
Only product with a strong positioning statement Strengths Positioning statement
resonates with Dutch women Current colours are too dark for Dutch women Weaknesses
Positioning statement is not consistent with results Buying intentions decreased after use
Belle Couleur is unable to meet market needs; Garnier should delay its launch until
product improvements are made
16. 16 Garnier Synergie offers its target market a unique value proposition Buying intentions
increased after use Strengths Different positioning from Plénitude Dutch market is very
competitive Weaknesses Need to maintain share of voice to maintain market share
Garnier should launch Synergie skincare without anti-aging line and emphasize natural
ingredients that are scientifically proven
17. 17 Market analysis Company analysis Recommendation Implementation Risk Mitigation
Expected Results Conclusion
18. 18 L’Oréal’s Decision Criteria … Launch Synergie only Launch Belle Launch Launch
Both Launch Neither Couleur Synergie Increase Garnier’s brand awareness Minimizes
threat of cannibalization Meets Dutch market needs
19. 19 Market analysis Company analysis Recommendation Positioning Implementation Risk
Mitigation Expected Results Conclusion
20. 20 Synergie will be positioned as high-performance, high-value skin care products for
women aged 20-35 Reliable Natural Smart Choice Synergie is a worry-free, natural
skincare line for young women who care about healthy skin. High Value High
Performance Understated
21. 21 Synergie and Plénitude will be positioned as high value for women 20 to 35 years old
Performance Middle/ High Upper Value Ellen Betrix End Synergie Yves Rocher
Plénitude Dr. vd Hoog Oil of Olaz Price Low High Nivea Visage Ponds Lower Dead End
End Low
22. 22 Synergie and Plénitude will be differentiated on the basis of ingredients and
demographics Science- Science Science- Youth Mature Plénitude Ellen Betrix Oil of
Olaz Ponds General Anti- Purpose Aging Synergie Nivea Visage Dr. vd Hoog Yves
Rocher Natural- Natural- Youth Mature Nature
23. 23 Garnier will target the value-conscious segment with Synergie Target consumer
profile: Aged 20-35 Recently graduated university and started working Has tried multiple
skin care brands with mixed results (not brand loyal) Looking for brand to use with
consistent results Value and performance conscious but not brand focused Thinks natural
ingredients are better for skin Unfamiliar with technical product descriptions and terms
24. 24 The positioning is aligned with capabilities, consumer needs and the competitive
landscape Dutch Consumer Needs Competitive Landscape Growing consumer segment
that is No direct competitor in high- value conscious and cares about value segment
natural ingredients Synergie Positioning Synergie is a worry-free, natural skincare line
for young women who care about healthy skin. Company Capabilities “Alliance of
science and nature” – natural products that don’t sacrifice performance
25. 25 Market analysis Company analysis Recommendation Implementation Risk Mitigation
Expected Results Conclusion
26. 26 Price the Synergie line in the mid-range to appeal to its value-conscious target market
Performance Middle/ High Value Synergie Product Line Price Plenitude Dr. vd Hoog 10-
11.95 Synergie (Garnier) 9.95-16.95 Oil of Olaz 12 Dr. vd Hoog Price Plénitude
(L’Oréal) 10.95-19.95 Oil of Olaz Low Synergie should be priced below Plénitude to
target younger demographic Low
27. 27 Launching Synergie will require a high level of coordination between sales teams and
distributors 0-2 months 2-4 months 4-12 months 1 2 3 Prepare Create a beauty buzz
Launch time! Customize literature Educate target Free product trials Train new hires
market Advertisements Sell bundling option to retailers
28. 1 Prepare for Synergie launch 28 Increase sales force Training period of two months
Define sales incentives Distribution strategy: Leverage current distribution network
Grocery stores and chain drug stores in densely populated urban areas Incentivize
retailers with L’Oréal-Garnier bundling option
29. 2 Create a beauty buzz 29 Secure optimal shelf space Place near Plénitude Find the face
of Synergie Dutch celebrity spokeswoman Educate about benefits of natural ingredients
PR efforts with women`s magazines and local TV stations
30. 3 Launch time! 30 Free product samples Mass mailing to select neighbourhoods Local
charity events Product demonstrations Shopping malls located near distribution outlets
Outdoor advertising Public transit, bus shelters, shopping malls
31. 31 Market analysis Company analysis Recommendation Implementation Risk Mitigation
Expected Results Conclusion
32. 32 risk mitigation Position Plénitude and Synergie for different target Cannibalization
markets of Plénitude sales Even with some cannibalization, overall L’Oréal-Garnier
market share will still increase First-mover advantage in high-quality, high-value Highly
natural segment – gain share before others can enter competitive skin Emphasis on
natural positioning for Synergie – care market increase reluctance to switch due to
possible allergic reaction
33. 33 risk mitigation Develop a clear positioning statement and build on Declining market
position as current market leader share for Recital Introduce semi-permanent formulation
to meet market demands Lost opportunity Still no competitors in the mid-range hair
colour market for mid-range Reformulate Belle Couleur to increase chance of hair colour
successful launch in future
34. 34 Market analysis Company analysis Recommendation Implementation Risk Mitigation
Expected Results Conclusion
35. 35 Expected Results … Increase in L’Oréal-Garnier market share and profits Skin Care
Hair Colour Dutch skin care market: Permanent hair colour market: 2.5 million
consumers 1.7 million consumers 56 million guilders 88 million guilders 10% market
share for L’Oréal- 30% market share for Recital = Garnier = 5.6 million guilders 26
million guilders Plénitude 5% Synergie 5% 2 million in profits◊32 million guilders in
revenue
36. 36 Metrics for Success … Indirect metrics drive top- and bottom-line results Direct
Metrics • Profitability • Revenue • Sales volume • Market share Indirect Metrics •
Retailer penetration • Retail and wholesale margins • Market share versus share of voice •
Brand awareness and consumer purchase intention
37. 37 THANK YOU