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MKT20021- Assessment 3 - LÓreal Paris Case Study

A presentation by David (James) Wesley, Angela Cotterell, Katherine Cooper and Teneille Dawe

Katherine Cooper

on 6 June 2016

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Transcript of MKT20021- Assessment 3 - LÓreal Paris Case Study

L'Oréal is the leading beauty and personal care manufacturer in the world.
Signature slogan "Because I'm worth it" is recognised around the world.
LÓreal continues to renew the image of its brands, by accelerating the pace of innovation and by stepping up digital investments (Agon 2015).
Digitisation is one of 4 pillars of strategy to double customer base to 2 billion by 2020 (Howarth 2014).
Australia's consumption of discretionary products is on the rise.
Increases in demand for premier labels at affordable prices.
Change in climate conditions causing weathering of hair, sun/heat damage, splitting, breakage.
Digitisation of communications is expanding.
Consumers want direct and personal consumer relationships through digital presence.
In Australia L’Oreal operates 35 local websites across 27 brands plus social media – with a focus on information provider not entertainment (Howarth 2014).
Women are increasingly leading busy and stressful lives (Clow & Baack 2010; Roy Morgan 2015).

Assessment 2: IMC Plan Case Study

Brought to you by:
Katherine Cooper (100357557) - Client Brief
Angela Cotterell (759321X) - Communications Objectives
Teneille Dawe (7717148) - IMC & Media Strategy
James Wesley (5893356) - Media Plan
Target Audience
L'Oreal traditionally markets to Australian women aged 25-55.
L'Oreal could benefit from targeting a new audience (Australian women aged 15-24) to build market share.
This audience has a higher disposable income, are fashion sensitive, influenced by celebrities, active on social media and have a desire to be 'visible'.

Problem Statement
Australia's climate is harsh on hair.
There is a significant need in the market for an innovative, versatile and affordable haircare product which assists with this problem.
Early intervention by the young female demographic of 15-24 year-olds provides an opportunity for L'Oreal's Elvive Extraordinary Hair Oil to capture market share.
Increase brand awareness
of L’Oreal Paris among the young female demographic in Australia by 15% over the next 24 months.

Increase product awareness
of L’Oreal’s Elvive Extraordinary Oil among the young female demographic in Australia by 15% over the next 24 months.

Impart knowledge
to the young female demographic in Australia that will establish an increase of 5% in positive feelings for the brand amongst the young female demographic and increase customer loyalty over the next 24 months.

The following statement was built on both competitive product offerings and the Voice of the Customer:

Elvive Extraordinary Oil is the leading product for Australian women that is a versatile, high-quality, yet affordable hair care solution.

Agon, J 2015, L’Oreal - Finance: Annual Report 2015, viewed 20 April 2016, <http://www.forbes.com/sites/greatspeculations/2015/01/12/key-trends-that-impacted-loreals-performance-in-2014/2/#1c55324f5b39>.

Chitty, W 2012, Integrated marketing communication, Cengage Learning, South Melbourne, Victoria.

Clow, K, & Baack, D 2010, Integrated advertising, promotion, and marketing. 4 ed, Prentice Hall, pp. 56-87.

Delano, J 2014, ‘The power of product sampling: giving away free samples of products can actually be more beneficial than discounting’, Global Cosmetic Industry, vol.182, no.9, pp.46-48.

Evic, U 2011, ‘Guide to Advertising Appeals - The 7 Ad Appeals Explained’, Ezine Articles, 24 January, viewed 1 June 2016, <http://ezinearticles.com/?Guide-to-Advertising-Appeals---The-7-Ad-Appeals-Explained&id=5781979>.

Freedman, A.M 1986, ‘Use of Free Product Samples Wins New Favor as Sales Tool’, Wall Street Journal, 28 August, Eastern Edition, p.1.

Frost, R 2015a, ‘Week 9: Price and value’, MKT30015: Marketing and Communication Information and Decision Making, Learning materials on Blackboard, Swinburne University of Technology, 10 August, viewed 1 June 2016.

Frost, R 2015b, ‘Week 8: Place research’, MKT30015: Marketing and Communication Information and Decision Making, Learning materials on Blackboard, Swinburne University of Technology, 10 August, viewed 1 June 2016.

Hicks, P 2008, ‘Layne Beachley’ [image], National Portrait Gallery, viewed 4 June 2016, <http://www.portrait.gov.au/portraits/2008.87.1/layne-beachley>.

Howarth, B 2014, CMO: Marketing, Technology, Leadership, viewed 15 April 2016,

Iyer, R 2016b, ‘Week 6: Bringing the wow to life: more on creative strategies’, MKT20021: Integrated Marketing Communications, Learning materials on Blackboard, Swinburne University of Technology, 24 April, viewed 1 June 2016.

L'Oréal Paris Norge 2014a, ‘Elvital Extraordinary Oils Logo’, Youtube, 13 June, viewed 4 June 2016, <https://i.ytimg.com/vi/UZvAsA1HcfE/maxresdefault.jpg>.
Limited reach into age groups under 25 years old.
Competitive intensity is increasing, which L'Oréal needs to heed to retain its market position in the long run (Euromonitor International 2012).
Heavily dependent on third party retailers (MarketLine 2015).
Case Study
MKT20021 Integrated Marketing Communication
Positioning Statement
Unique Selling Proposition
Elvive Extraordinary Oil is an innovative hair care product that is affordable, high-quality and versatile, helping Australian women quickly with hair breakage by providing instant nourishment, shine and softness without weighing it down.
Targeting Australian women aged 14-24 years old to generate market growth.
Also targeting current consumers - Australian women 25-55 years old to maintain brand equity.
Target Demographic
Marketing Mix
Existing formula but with innovative, end-user designed attachment.
Considerate of the fact that Australian women lead busy lifestyles (Clow & Baack 2010; Roy Morgan 2015).
L'Oreal Mitt Diffuser where the Elvive Extraordinary Oil can be applied and quickly and easily blown onto hair.
The strategy needs to consider a three-pronged approach - competition, customer and cost (Frost 2015a).
From market and internal research, it is recommended that Elvive Extraordinary Oil be priced at AU$23.95.
This is still much less than high-priced and quality products on the market, but more expensive than poorer quality products, thus filling a gap in the market.
Placement of marketing collateral and distribution will take place through existing retail channels (both bricks and mortar and online).
Advocates to provide samples and advice to consumers, building awareness, loyalty and sales (Delano 2014; Freedman 1986, p.81).
More shelf-space should be considered to achieve maximum exposure (Frost 2015b).
Marketing Mix Continued
The greatest marketing impact is achieved through a completely integrated marketing strategy to deliver a consistent message (Pickton & Broderick 2005, p.22).
Creative Objective
Drive an affective response, promoting how Australian women aged 15-55 can achieve luxurious and strong hair through emotional appeals and high-quality imagery.
Aim to achieve 5% in positive feelings for Elvive, increasing brand and product awareness.
Creative Strategy
Means-end Theory explains that audiences see a means for achieving a desired result through product attributes and consequences (Chitty 2012, p.143).
Therefore product attributes (six essential oils + diffuser attachment) will be used to describe benefits (strong, luxurious hair in a quick and easy time).
Emotional appeals and affective strategy will be used to foster positive attachments, build brand loyalty, recall and comprehension (Evic 2011; Iyer 2016b).
Creative will use Layne Beachley as an authoritative, credible, celebrity endorsement (Iyer 2016b) to show the common concerns about hair breakage and the stresses of busy lives (Clow & Baack 2010; Roy Morgan 2015).
It wil also encompass the existing L'Oreal brand personality and lead to the tagline "because you're worth it" for consistency.
This creative will be best communicated via online digital media and mobile to cater for younger audiences (Raco 2014), and traditional magazine media to cater for older audiences (Williams & Page 2011).
To create brand awareness, an above the line strategy will be conducted via Facebook; and to drive sales, a below the line strategy will be conducted via text SMS and advertising samples placed in magazines (Manral 2011).
Media Plan
(L’Oreal Paris 2016)
(L'Oréal Paris Norge 2014b)
(Hicks 2008)
References Continued
(L'Oréal Paris Norge 2014a)
L'Oréal Paris Norge 2014b, ‘Elvital Extraordinary Oils Flower Oil’,
, 10 October, viewed 4 June 2016, <https://i.ytimg.com/vi/46pbQ82BTSE/maxresdefault.jpg>.

L’Oreal Paris 2016, ‘L’Oreal Paris Elvive Extraordinary Oils Bottle’ [image],
L’Oreal Paris
, viewed 4 June 2016, <http://loreal-paris.be/_nl/_be/caps/Cap_150911_huile_extraordinaire/img/main/more-visual.jpg>.

Manral, K 2011, ‘Difference between ‘above the line’ and ‘below the line’ advertising’,
The Advertising Club
, 22 August, viewed 1 June 2016, <http://www.theadvertisingclub.net/index.php/features/editorial/3256-difference-between-above-the-line-and-below-the-line-advertising>.

MarketLine 2015, Advantage:
LÓreal S.A.
, viewed 1 May 2016,
<http://advantage.marketline.com.ezproxy.lib.swin.edu.au/Product?pid=B374D495-445D-4005-BCE0-C39F5071ED41&view=SWOTAnalysis >.

Motion Backgrounds 2014, ‘Free Motion Background - Golden Light’ [image],
, viewed 4 June 2106, <https://i.ytimg.com/vi/4AA4qYGunr4/maxresdefault.jpg>.

Pickton, D & Broderick, A 2005,
Integrated marketing communications
Financial Times Prentice Hall
, London.

Raco, E 2014, ‘Aussie teens online | ACMA’,
, viewed 28 May, 2016, <http://www.acma.gov.au/theACMA/engage-blogs/engage-blogs/Research-snapshots/Aussie-teens-online#_edn1>.

Sally Beauty 2016, 'Mitt Diffuser' [image], Plimatic Mitt Diffuser, Sally Beauty, viewed 1 June 2016, <http://www.sallybeauty.com/Plimatic-Mitt-Diffuser/SBS-345310,default,pd.html>.

Roy Morgan 2015, Australian Wellness Index: health improves, but young women suffer sharp decline in psychological wellbeing,
Roy Morgan
, 4 June, viewed 2 June 2016, <http://www.roymorgan.com.au/findings/6264-australian-wellness-index-march-2015-201506032309>.

Williams, K.C & Page, R.A 2011, ‘Marketing to the Generations’,
Journal of Behavioral Studies in Business
, vol.3, no.1, pp.1-17.
The media task is to increase brand and product awareness, and impart knowledge to the young female demographic that L’Oréal has a product to deal with the damaged hair issue.

The creative strategy will be implemented over a two year period.
Soft start period of five weeks as we ease into the social media environment with strategically written blogs on the L’Oréal and Layne Beachley pages.
Simultaneously, full page print advertisements will be released in Girlfriend and New Idea magazines, both featuring Layne as spokesperson.
Start-up period is strategically timed for the best possible chance of impacting buyers for the summer period.
Banner advertising and print advertisements will be eased in the off periods.
In order to draw customers away from opposition products, New Idea and Girlfriend Magazines will also offer ‘In-leaf’ samples and coupons. These will be attached to articles about Layne Beachley, L’Oréal and Elvive Exraordinary Oil.
Promotional Mitt Diffuse will be utilized to set Elvive Extraordinay OIl apart from the opposition

Using dignitary media and magazine advertising. L'Oreal can expect to reach a high percentage of the target audience.
15% Growth in brand and product awareness.
Social media advertising effectively reaches around 53% of the target audience (Pick 2016).

Using the pulse method / Summer / Christmas / Valentine's Day.
Click and share / banner advertising / Social media and print advertisements / promotional giveaways.

L'Oreal will be the brand of choice among young women.
Elvive Extraordinary Oil with the the product opf choice among young women.

Using the pulse method / Summer / Christmas / Valentine's Day.
Click and share / banner advertising / Social media and print advertisements / promotional giveaways.
Unline ADvertising / Website / Print Media / Sponsorship (Layne Beachley

(L'Oreal Paris 2016)
(Sally Beauty 2016)
Full transcript