Agenda What is our goal? Which are our markets? Identified countries markets potentiality Competitive scenario Social data Who is our target? What do they l’oReally want? Beauty desires Concerns and functional needs Which l’Oréal Paris product range we would like to launch? The product range How can we get our target? Marketing mix: product, price, place, promotion The communication campaign Digital campaign social contest In-Store promotion Timing & Budget
What is our goal? “To love yourself is the beginning of a lifelong affair” O.Wilde What?Increasing L’Oréal Paris market sharelaunching an hair-care l’Oreal Paris product range,able to innovate and generate values Where?In the most profitable south east asian markets How? Identifying population segments with an high potential Analizing their needs and wants Finding efficient and successful answers to these needs Creating an exclusive way to communicate with our target
Which are our markets? Why? Indonesia & Philippines are the most populated southeast asian countries Constantly developing economy GDP growth% (2015exp) 7%Ind; 5%Phil Recent l’Oréal investements in Indonesia Jababeka Urbanization rate Ind 44,6%; Phil 49,1% Markets potentiality Indonesia Philippines [Population 248,645,008] [Population 103,775,002] 9.2% Growth of Sales in the Hair Care 5.8 % 2006/2011 CAGR % Weight 28,5% (330,9 B€) of Indonesia and Philippines on the 33% (379,4 B€) total MASS asian hair-care Full growth expected in the hair-care market for the next three years Source: Cia data (2011 est.) / DeAgostini http://www.thecorporatetreasurer.com http://www.newmediatrendwatch.com
Social data177mlnTotal women (Indonesia + Philippines) 33 mln88,6 mln 15-29 y.o.Internet users 81 mln Social network users Trends & Habits Hair-straightening Brown based colour Hair wash once/twice a day Use of Oil (in the night too) against dryness Hair mask in place of salons creambath
Who is our target?Indonesian and filipino women between 20 and 30 years Web and social network users Living in different places, big cities and townsBut with the same hair-care habitsconcernsand dreams
Concerns and functional needs Common Indonesia & Philippines concerns Tropical & moonsoon clime Urban Pollution Unhealthy lifestyle (junk food, stress) Jilbab use (especially in Indonesia): high umidity Damaged hair, hair lossFunctional needsRestore Nourish Prevent Mantain Natural Make hair fiber Hydrate roots and hair from colour ingredients healthyintegrity scalp breakage LET THERE BE STRONG!
L’Oreal Paris Expertise “Ever Strong”3 complementary versions to take care ofyour hair beauty “Beauty is the wonder of wonders“ O.Wilde
What is “Ever Strong” ?professional high quality nature results every day a luxuriousaromatherapy your new oil experience the Perfect sensitivity power massage YOUR natural beauty l’Oréal Philosophy Source: Hong Kong beauty blogs, Tesco website
How can we get our target? Product and price Product Small and medium bottles: To reach well-to-do classes in supermarkets and hypermarkets Sachets and multisachets: To reach middle classes To expand l’Orèal Paris distribution To profit by the high volume of sachets• Bottles of 250ml & 150ml for sold in IND (54%) e PHIL (78%) supermarkets and hypermarkets Price• Sachets for markets and groceries High positioning in the Mass Market: to communicate uniqueness to communicate innovation to communicate value
How can we get our target? Place Indonesian and Filipinos buy hair-care products in: 1) Supermarkets (40% and 55% of hair-care product) 2) Markets (Sari-Sari PH) andUsing the power of general tradeL’Oréal Paris distributionnetwork already present inIndonesia and Philippines 3) Hypermarkets
How can we get our target? Promotion: EverStrong as a LovemarkReach our consumers heart• Going beyond the traditional mass communication• Creating continuous involvement• Creating a close relationship with our consumers personal aspirationsWhy only a digital strategy?
Digital communication campaignDirect marketing to bloggers and Youtubeopinion leaders To promote the launch of the EverStrong range To create a positive word-of-mouth & online brand reputation To promote the EverStrong social contestDigital contest through Instagram & Facebook To know better and better l’Oréal Paris consumers To enable a more creative and efficient marketing approach To generate online traffic and followers on l’Oréal Paris webpages
“All say EVER!”Explain the Best photos will be EVERy week theEverStrong range in chosen by l’Oreal most voted photosthe way you prefer: crew and will be will be selected foryourself, your life, your posted on our the final roundplaces facebook pages Final round: vote our finalists!
You’ll become the STAR The winner can customize her favourite EverStrong product in the way she wants! “Your name for-EVER”You, at the centre of our Universe: Give it your personal touch! You can choose the colour of the packaging, the size, the smell The limited edition is sold in the supermarkets of your city for few weeks Like a star, your signature appears on the product!
In-Store promotionIn-store promotion“Buy the complete l’Oréal Paris Ever Strong rangeand get your own style for free!” Free style product with less rotation on the shelvesIn-store experience: Tablets in the retail environment Key your habits and your hair type Discover the perfect EverStrong products for your beauty and how to use them To offer tailor-made beauty solutions To create interactions To involve them in a shopping experience “Check-in here to have EverStrong samplings for free!” Visibility for l’Oréal Paris Visibility for the retailer
TimingEverStrong rangelaunch Jan Feb Mar Apr May Jun July Aug Sep Oct Nov DecIn-store promotionIn-store experience Retailers flyer Digital display Adv / SEO Direct mktg to bloggers and opinion leaders Digital contest: 3 months
Budget (Rp billion) Indonesia 2013 2014 2015 2016Forecast Sales of Hair Care 6,416.6 6,748.8 7,130 7,554.9%Value Growth of the Indonesian hair care mkt 5,2% 5,2% 5,2%%Value Growth of LOréal Paris with EverStrong launch 9% 12% 15%Forecast Sales of lOréal Paris (value) 455.6 497 556.6 640Communication investments 20% Turnover 20% Turnover 20% TurnoverMS lOréal Paris (%) 7,10% 7,40% 7,80% 8,50% (Ps million) Philippines 2013 2014 2015 2016Forecast Sales of Hair Care 31,380 32,071 32,697 33,515%Value Growth of the Indonesian hair care mkt 2,5% 2,5% 2,5%%Value Growth of LOréal Paris with the EverStrong launch 5,5% 8,5% 11,50%Forecast Sales of lOréal Paris (value) 15,062.4 15,890 17,240 19,223Communication investments 20% Turnover 20% Turnover 20% TurnoverMS lOréal Paris (%) 4,80% 4,95% 5,3% 5,74% Communication investments: 60% on consumer mktg (digital) and 40% on trade mktg each year