Bài học chiến lược marketing Loreal

1. NETHERLANDS MARKETING STRATEGY
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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%
32 million guilders in revenue  2 million in profits

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

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THANK YOU