The document discusses Lancome's position in the beauty and travel retail markets. It summarizes key details about market sizes, growth rates, and consumer types. It also outlines Lancome's brand positioning, digital strategy, existing points of sale, competitors, and opportunities and threats. In the future, Lancome sees opportunities in augmented reality ads, better customer data utilization, and new technologies. However, it faces threats from increased competition and potential declines in luxury demand.

1. TBA
Aarhus University

2. Our Team
Ioana Krisztina Ethenia
Romania Slovakia Indonesia

3. Agenda
Beauty market
Travel retail market
Current experience
Consumer types
Future vision
Lancome
Positioning
Digital strategy
Existing point of sales
Consumers
Competitors
SWOT

4. Beauty Market
Market size
In 2013, revenues amounted to $204.61 billion.¹
Market growth
Market Characteristics
Mature market
High market segmentation
High R&D2
Consumer urbanization
Increased spending propensity

5. Travel Retail Market
Market size
In 2013, around $60 billion3
Market growth
Estimated to double by 20254
Beauty sector
30% of the travel retail market5
L’Oreal
Market leader (21.3% market
share)6
Present Experience
Democratization of traveling
Luxury dominance
Sophisticated CRM
Customer is first and foremost a
traveler
Fast paced environment
Limited infrastructural capacity
Online shop and pick up option

6. Travelers: different needs than regular shoppers
Potential stress factor, time pressure
Different needs based on cultural background
Different needs based on traveling purpose
Traveling Impact

7. Customers at the airport

8. Gift Purchasers
mostly planned purchases
look for: discounts, sets and
special editions
attracted by beautiful packaging
and design

9. Layover shoppers
seek entertainment, more
time to spend shopping
impulsive shopper
leftover currency spending

10. Expert shoppers
smart, calculated decisions
limited budget
prefer products that are only
available abroad
price-conscious

11. Business Travelers
efficient shopper, stress averse
brand-loyal customer
also shopping upon request
limited time

12. Luxury Seekers
1) luxury as a norm
no budget limit
exclusive and rare products
2) breaking out of routine
indulging themselves
somewhat price conscious

13. The Future of Travel Retail
Opportunities Threats
Ads via augmented reality
Better utilization of
customers’ data
Near Field Communication
Travel review websites
Cluster – less ad space
Increased competition in
luxury segment

15. Positioning and Image
luxuriousFrench-elegance
happiness
beauty
feminine
confident
accomplished
iconic
intelligent

16. Consumers
20+
Loyal customers
Attracted by fragrance
Adventurous
Undecided
25+
Classical
Elegant
Quality-seeker
30+
Loyal customers
Product-driven
Perfect fit

17. Digital Strategy
PUSH
(promoting, informing & teaching)
PULL
(feedback request & call to action)
Integrating social media platforms: Lancome Digital Chase

18. The Absolue world
Skincare analysis machine
Celebrating key cultural events
Existing Points of Sales

19. Merchandising
Travel friendly products and packaging
Merchandising POS elements, planograms, and staging
Gift sets, miniature coffrets, duos, trios, samples

20. Competitors

21. Target
30+
Career women,
Beauty-concerned
Preserving young look
All ages
Well aware of the
brand's spirit
25+ Puberty and up
Product
Skin care, make up,
fragrance
Good quality
Make-up, fragrance,
and skin care
Focus: vibrant skin
Skin care
Common natural
ingredient (Pitera)
Dermatologist
recommended skin
care and make-up
products
Image
Healthy skin and eternal
beauty
Elegance, romantic
Unique,
Both goal-conscious
and free-spirited
Luxurious beauty
Pure skin, young look
Eternal, natural
beauty
Quality above all for all
products
Price ++ +++ ++ +
Parent Co. Estee Lauder Bourjois P&G Estee Lauder

22. Competition
for Fragrance
Luxury brands
Personalities
D&G
Gucci
Dior
Calvin Klein
Chanel

23. Competition for
MakeUp
Dior
MAC
Chanel
Estee Lauder
Clinique
Shiseido
Guerlain

24. Competition for
Skin Care
Estee Lauder
Clinique
SK-ll
Chanel
Shiseido
L’Occitane

26. • French brand with tradition
• Reputation of high quality
• Make up and skincare teaching
sessions (Lisa Eldridge, blog)
• Products for all skin colours
• Considerable brand value7
• Strong market growth, especially in
Africa, Middle East, and Asia Pacific
• Unclear positioning (age group and
price range)
• Similar core message with other
French luxury beauty brands
• Less attractive for under 30 years
old

27. • Emerging middle class
• Cruise, in flight, hotels and
downtown shops yet unexplored
• Digital opportunities
• Technology for better in-store
experience
• Customers tend to look for
information in advance
• Competitors present and entering
the travel retail market
• Low switching costs
• Trend for natural product
preference8
• Consumers’ preference for local
beauty products
• Limited airport infrastructure
• Possibility of declining demand for
luxury in developed countries

28. Thank you.

29. References
1) http://www.wwd.com/beauty-industry-
news/beauty-features/the-2013-beauty-inc-top-100-
7824155
2) http://www.cosmeticsdesign-europe.com/Business-
Financial/Euromonitor-P-G-no-match-for-L-Oreal-as-
R-D-is-diluted
3) http://www.trefis.com/stock/lrlcy/articles/269024/tra
vel-retail-the-future-of-luxury-cosmetics/2014-12-11
4) http://www.trefis.com/stock/lrlcy/articles/269024/tr
avel-retail-the-future-of-luxury-cosmetics/2014-12-11
5) http://www.trefis.com/stock/lrlcy/articles/269024/tr
avel-retail-the-future-of-luxury-cosmetics/2014-12-11

30. 6)http://www.trefis.com/stock/lrlcy/articles/26
9024/travel-retail-the-future-of-luxury-
cosmetics/2014-12-11
7)http://www.forbes.com/companies/lancome/
8)http://www.gcimagazine.com/marketstrend
s/segments/natural/Preferences-for-
OrganicNatural-in-Beauty-and-Personal-Care-
See-Growth-Space-261828421.html