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Lara Toscani

on 19 November 2014

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Transcript of Brandstorm

A Journey in Beauty
Stephanie Maltman
Francesca Pelizzola
Lara Toscani

An Overview on L’Oréal Group
French industrial group
Born in 1907
Owns different brands
The company is divided in five divisions: Luxe, Active Cosmetics, Consumer Products, Professional Products and The Body Shop.

Focus on Lancôme

Founded in 1935 by Armand Petitjean
Purchased by L’Oréal in 1964
Part of the Luxe Division of L’Oréal Group
Three main categories of products: fragrances, make-up and skin care.
Lancôme operates in malls, department stores, travel retail and selected retailers.
Recent trends and events: emerging countries, targeting of different segments of women, balance between heritage and innovation, effort to reach a young target, travel retail, digital dimension.

L’Oreal Luxe/L’Oreal Group= 25.5%
Lancôme sales= 3,519,046,609.11€
Lancôme sales/L’Oreal Group sales= 15.32%
Lancôme sales/L’Oreal Luxe sales= 60%

Data about Lancôme
Travel Retail: the Sixth Continent
“Business undertaken in all the shops located in duty free areas or any areas dedicated to travelers”

“Once passengers step through the security scanner a ‘golden hour’ begins”

Airport = hub for commerce
TR Value in 2013 = 47 billion € (+9%)
6 billion flights in 2013 (+5%)
1.087 billion people traveled internationally in 2013: the Sixth Continent
Beauty in TR = 14.1 billion €
Women are main customers
Average shopping in beauty over 100 US $
This market should double in the next ten years

Data about Travel Retail
Lancôme in Travel Retail (2013)
Growth of L’Oréal Luxe sales in TR between 2012 and 2013 = 9.62 %
L’Oreal Luxe sales in TR = 1,007.41 million €
Lancôme sales in TR = 604.45 million €
Lancôme market share in TR = 4.29%

Main brands and main companies operating in Premium Beauty and Personal Care?
How are these brands perceived?
Source: our survey (N= 43) about Luxury cosmetics

Current Marketing Mix
Consumer Profile
Most of the purchases are impulsive
Travel for work or travel for pleasure
Travellers of every age and nationality
Changing market from men business travelers to women and families
Globals travelers’ average expenditure to duty-free US$87 and duty paid airport retail outletsUS$49.
Key drivers: renowned brands at discounted prices, last minute gifts and utilization of time
Perfumes, cosmetics and personal care and alcoholic beverages are the most preferred product categories
Key Consumers
Chinese were the biggest spending nationality
41% of S. Koreans travellers spent an average € 97 on cosmetics throughout the journey
Brazil has been the strongest growing beauty and personal care market in the world
Russia is going to account for 20%+ of all European DF in 2016

The New Strategy: a Journey in Beauty
Implementation: the 4P
At the Shop
Product: TREX
Price: bundling
Promotion: samples, iPads, free Macarons or Cupcakes and postcard service

Before the Shop
Promotion: traditional billboards and transmedia storytelling
Post Shop
Promotion: app and on board experience
Goal: increase sales
Objectives: enhance brand image, convert non-shoppers into shoppers and make it worth visiting Lancôme Travel Retail shops.
The external world and the internal world
Any questions?
Thank you for your attention
1. Overview on L'Oréal and focus on Lancôme
2. Travel Retail
3. Competitors
4. Swot

5. Current Marketing Mix
6. Consumer
7. The New Strategy
8. Budget
Full transcript