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LANCOME - case study


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The case study was a part of the curriculum of Brand & Product Management course at the University of Groningen in 2015.

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LANCOME - case study

  1. 1. Brand & Product Management Group 8.3 Roel Hengeveld - s1894137 Branisa Milosavljevic - s2512874 Frida N. Minhas - s2818604 Mariam Talakhadze - s2818353 Niek van de Ven - s1967312
  2. 2. PROBLEM STATEMENT •  1 Billion Customers •  Currently still world market leader •  Competition starts to focus more on China as well •  Estée Lauder Asia Pacific market leader •  Chinese culture significantly different •  Differentiate from competitors •  Improve/create new retail experience •  Inventing/presenting new products •  5% growth within 2 years
  3. 3. AIRPORTS ARE STRESSFUL •  44% of surveyed women say airports are highly r fairly stressful •  40% says, quiet and peaceful environment would improve the experience; •  Femail Toilet in the Airport – Highest Personal Drama Location
  4. 4. BRAND MANTRA & CORE BRAND VALUES •  Brand Mantra: ”Refreshing Luxurious Beauty” •  Core Brand Values: •  Happiness •  Beauty •  French Elegance •  Scientific Expertise •  Ultimate, scientific research proven, refreshing products and services of high quality and Luxury.
  5. 5. TARGET MARKET •  Chinese Female Customers •  Rising competition due to growth in emerging markets •  Growing democratization of travellers •  Travel retail not exclusive to luxury anymore •  Main competitors of Lâncome also start to focus on Chinese market
  6. 6. NATURE OF COMPETITION •  Category competition: Rituals, XpresSpa •  Product competition: Estee Lauder, Chanel, Christian Dior.
  7. 7. POP’S & POD’S •  Category POPs: entrance in the new category – Travel Spa •  Services offered •  interior and atmosphere •  Competitive POPs: very limited competition within category •  Availability •  Skiller Personnel •  Correlational POPs: •  Time-consuming treatments – online booking •  POD’S •  Luxurious Refreshment •  More Service Offerings •  Strong global brand awareness and reputation
  8. 8. NEW TRAVEL RETAIL EXPERIENCE •  Lancôme Thermes = SPA Experience •  Offer three categories of refreshing services: Relaxation, Revitalization, Beauty •  Skilled personnel •  A refreshing experience for tired travellers after arriving from a flight or to kill time while waiting for a departing flight •  Perfect way for customers to be introduced and educated about Lancôme's products
  9. 9. LANCOME THERMES •  Lancôme Thermes •  Relaxation – Massage (hands/head/face/feet) •  Revitalization – Facials, Full treatment (from skincare to makeup at the end) •  Beauty – Makeup consultations (customer have the option of paying for only consultations or consultations + products for the same price) •  If the customer likes the products used during the services, they will be offered a discount if they buy a whole set (for e.g. cleanser, toner, serum/face cream)
  10. 10. LANCÔME BRAND AWARENESS AND BRAND IMAGE •  Awareness: •  Lancôme Web Presence •  Rose Beauty •  Co-branding, •  Advertisement in in-flight magazines •  Image: •  All stores – same design •  relate to core values •  exceptional service and experience
  11. 11. LANCÔME BRAND RESONANCE •  Roll-out the Loyalty Program worldwide and extended to Thermes