Loreal ppt

8/12/2019 Loreal ppt

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Bringing Class to Mass

PLENTITUDE


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LOREAL

Beauty products! Personal + Technology 300 mn $ on Research, 300 new patents

Hair care distribution channels: beauty

salons and mass outlets

Skincare: Department and Specialty as

well as mass Competitor: P&Gs Oil of Olay and Nivea

France

23%

Rest of

Europe

40%

USA &

Canada

20%

Latin

America

6%

Asia

6%

Rest

5%

Revenue Distribution by

Geography


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ANINTRODUCTION

A journeyfrom

French to

US

To reap -What to

change, &what to keep

Key Strategy:trickle downand fire up

Key Areas:improve top-line, bottom

line, target US

Key Problem Area -

Analyze if the French strategy will work in US? Marketingproduct mix, premium pricing

star system of investment

Organizational structure


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PROBLEMS

Product

No Localization - Productdesigned for France marketlaunched in US only with minor

modifications. Problem of plentyToo many

variants focussed on narrowsegments resulting in aconfused / non interested

buyer. Over DeliveryProduct over

delivered and hence overpricedcompared to competition.

Price

Multiple price point- having 3to 4 price points confusedcustomers. Need to rationalize.

Over PricedProductoverprized for the targetsegment.

Addressable Market - Only 40% ( Stressed out & Age focussed

Segment)


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PROBLEMS

Place

No SalespersonClearly hamperedability to communicate as PoPdisplays were poor substitutes.

HBA section vs. CosmeticsCompany had no prior relationshipwith HBA buyers. Took competitionhead on by being right next to Olay.

Promotion

Share of Voice18.83% comparedto 31% of competitor.

Packaging - Lots of data. Suited for

category with high involvement. Butthe mass segment is more visualizethan verbalize. It gives our brand atherapeutic feel.

Lost in TranslationMessages justtranslated from French to US.

Communication FocusProductended up as an Treatment Product

and less of a Daily Product


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COMPETITIVEPOSITIONING

LorealPlenitude

Caught in nomans land

Oil ofOlay

Traditionalandgenerational

Ponds Older, down

to earth


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The game

BrandPower -

L'Oreal

Theconcept -

Plenitude

R&D,

Technology

The User andMarket

CHANGED!

REMAINED THE SAME


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Increasing Trend

in Total Retail

Market forMoisturizers and

Cleansers.

Stagnancy in

Plenitude sales for

both category.

MARKETSIZE


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26%17%

17%

22% 18%

Unconcerned Ingredient Apathetic

Price Conscious Socializers Stressed Out

Age Focused

Assumed that advertising spending in all brand used for

moisturizers and cleansers

Plenitude has poor advertising performance than Olay

and Ponds

Plenitude brand not strong recognized in US

Market study divide consumers into 5 segments:

US MARKETANALYSIS


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ACCEPTOR/REJECTERSTUDIES

Motivation for Trial Brand name cited

Brand name meant

Department store quality

Respond to Product Formulas Young rejecters found it too

heavy and greasy

Didnt absorb into skin

Perception as Full Product Line

Having large number of productsbut have plus and minus

Individual products could bemore helpful in through the line

Respond to Packaging

Packaging seemed feminineand expensive look

Confusing and have lot to read

Perceived Target Consumer

Perceived targeted to olderwomen

Not for 20s, and maybe noteven 30s


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Brand Aware EverTried

ConversationRatio

CurrentlyUser

RetentionRatio

Oil of Olay 96% 77% 80 34% 44

Ponds 93% 52% 56 16% 31

Avon 91% 68% 75 23% 34

Revlon 90% 35% 39 10% 29

Plenitude 78% 23% 29 7% 30

Nivea 76% 26% 34 6% 23

Taken from Exhibit 11

Poor Plenitude Sales

Performance

Low Consumers Ever Tried

Low Conversation Ratio

Low Current Used

Low Retention Ratio

BRANDDEVELOPMENT


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AspectsLOreal

(Plenitude) Oil of Olay Ponds

Motivation for

Trial

Premium and

Expensive

Generated by

information /

advertisement

Seen as a staple

of life

Product

Satisfaction

Sources

Good qualityproduct

Light andreasonably

priced

Reliable,accessible and

reasonably

priced

Brand

Imagery

Hard to

understand

Traditional,

generationalbrand

Older and

down-to-earth

COMPETITORANALYSIS


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Strength

Great Research and DevelopmentDepartment

Expertise in handling Cosmetics for years

Known for Quality

Superior Technological Products

Weakness

Lack of Awareness About L'Oreal Products inUS Market

Lack of Consumer Insight in US Market

Confusing Packaging

Too many Products posed confusion to

Consumer

Opportunity

Entering into mass channels Upscaling skincare business

Available in speciality stores

Launching new product Revitalift Eyeto bring technological superiority.

Threat

Suitable skincare products for U.Smarket

Pricing structure(Expensive)

Competition with Ponds it is ratedhigher on availability and good valuefor money

SWOT

SWOT ANALYSIS


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Threat of substitutesLow vertical competition.

Low threat

Threat of new entrantsDifficult for a new entrant to enter to reach the sameR&D expertise.Create a distribution network from scratch.High brand recognition & trust for LOreal

Moderate threat.

Bargaining Power of customers

Low brand loyalty. Easy switchers.

High Threat

Bargaining Power of SuppliersL'Oreal has many suppliers in processing theirproduct. So their bargaining power is low.

Low threat

Threat of Competitors

High no of competing firms (Egponds, P&G). Rivals sell similar

product/service

High threat

PORTERSFIVEFORCES


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4 PSPRODUCT, PLACE, PRICE AND

PROMOTION

PRODUCT PLACE PRICE PROMOTION


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Product development needs to be given emphasis

on:

Needs to be less oily, non-greasy

Should be light and should easily get soaked into the skin

Less of a make-up substitute and more of product quality

in terms of value-benefits to the customer



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We decide to strategize our selection of place for

effective sales

Mass merchandizing can be done in areas like malls,

supermarket, hypermarkets, convenience stores of those

products that have high sales/month. Eg

Sr. No Product Size % Volume

1 Revitalift Face 1.7 oz. 5,679,850

2 Eye Defense 0.5 oz. 2,297,5973 Wrinkle Defense Cream 1.4 oz. 2,193,248

4 Excell Cream 1.4 oz. 1,580,213

5 Hydra-Renewal Cream Jar 1.7 oz. 1,559,063



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In drug stores and departmental stores, entire range ofplentitude can be displayed.

Customer can get what they need for their skin

In terms of understanding the technological aspects of theproduct, sales people can help them take a sound decision

Product benefits and features can be effectively explained by theattendants making it customer centric & exclusive as against itsplayers in the market

Effective CRM can be established at these stores Since Revitaliftof Plentitude is doing good, make them

available in all types of outlets by increasing the point ofvisibility



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More towards technologically advanced

Spend more on R&D to come out with the right product for their consumers



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Positioning for the consumers who like to be highly involved(like to spend more money

on themselves)

More towards Stylish upper class


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POINT OF PARITY

The product line: Daily moisturizer

Treatment moisturizer

Cleanser

POINT OF DIFFERENTIATION

For the consumer who love theirskin and want to know more aboutthe product to look young andbeautiful (highly involved)

For the people who think they areworth it

They are technologically advanced

For the upper class consumers

Spend a lot on R&D

Spend a lot on advertisements andfor product support

LOreal products are premium



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SKUs in the form of sachets for sampling ofmoisturizers

Cleaners coupled with moisturizers- Complementaryoffer

Point of visibility at retail outlets. Eg. Counter Branding,flanches, shelf branding etc

Use of Social media platforminteractive website Communicate the advantages of our treatment cream (it being

thick and oily)

Communicate about the different product lines and for whatthey must be used

Develop a feedback forum- Accept the complains or suggestionof the consumers and address their grievances, if any



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PRODUCTS Trimming product-

line: focus on mass

products

Re-formulating

product basiscustomer feedback

RECOMMENDATIONS

CONSUMER US consumer as

opposed French areutility drivendifferent positioning

Promotions andcampaigns to belocalized for greater

mass appeal

Leading range like REVITALIFTto be

leveraged to promote other products

More effective communication focused on

product value to justify premium pricing


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THANKYOU..!!

Group 3Rajneet Kaur Rupani

Ameet Khalsa

Shraddha NikamAkshay Patel

Shivika Gupta

Swati Joshi

Anirban Ghosh

Garima Malik

Komal Suri

Dewanshi Gautam

Tejas Shinde

Documents

Loreal ppt