2013 Brandstorm presentation making up for Neoma Business School and introduced by Alexis Martel, Alexis Cottray and Pierre-Eric Bouvier during France finals

1. Brandstorm
TEAM
Pierre-Eric Bouvier
Alexis Cottray
Alexis Martel

2. 1. ASEAN ZONE
1.
ASEAN 5:
- Indonesia
- Malaysia
- Philippines
- Vietnam
- Thailand
Real GDP : +5.9%
Sources: IMF 2013
ASEAN + India = Free Trade
15-29
years-old
26% of South Eastern Asians
28% of Indians
18% of Europeans
Sources: Populationpyramid.net
= 530 million people

3. Key characteristics of the ASEAN zone
 Climate
 Water content
Humidity level: 70-90%
Rainfall: 150 to 250+ cm/year
 Most polluted cities in the world:
1. Ludhiana, India
3. Medan, Indonesia
Sources: worldclimate.com
Tropical
Equatorial
Hours of sunshine:
2100 - 3000 h/year
(Paris : 1725 h/year)

4. Impact on hair
 Damaged hair, brittle and split ends
 Unruly Hair
Expectations :
 consumer demand: protect, repair and resist
 Long Lasting products

5. 2
HAIRCARE OR HAIRSTYLE?

6. HAIRCARE
Turnover
Current Growths
Forecast sales Competitors
L’Oréal Offer
$ 3.4 bn (2010)
+9.1% (2009-2010)
+51.6% (2005-2010)
6 ranges of products
Hair care Asean (2010-
2015) : +33%
SOM (2010) :
Unilever: 31.4%
P&G: 17.4%
L’Oréal : 7.8% Sources: Euromonitor Report

7. HAIRSTYLE
Turnover
Current Growths
Forecast sales Competition
L’Oréal Offer
$ 316 m (2010)
+9.7% (2009-2010)
+65.3% (2005-2010)
6 ranges of products
Hair style Asean
(2010-2015) : +30%
SOM (2010) :
 Gatsby : 22.3%
 L’Oréal : 14%
Sources: Euromonitor Report

8. OUR STRATEGY
Size of Market: Hairstyle < Haircare
BUT current growth: Hairstyle > Haircare
All key players focused on haircare
Hairstyle: under served by fragmented competition
Focus our efforts on HAIRSTYLE
$316 m vs $3 bn
65% vs 51%
Flanking Marketing WarFare strategy
Lead and actively grow the Hairstyle market!

9. Manifest social trends (1/2)
> DEMOGRAPHICS
Most represented segment: 15-29 years-old
48% 52%
a 16M-people difference
> TREND FOLLOWERS
• culture of social harmony
• metrosexual phenomenon

10. Manifest social trends (2/2)
> MEN VS WOMEN DEMAND
> RURBANIZATION
« Desakota » regions: « Kota » (city) + « Desa » (village)

11. Who are our future consumers?
MEN
15
YEARS-OLD
URBAN
-
29
& ACTIVE
TREND FOLLOWER

12. What do they expect?
 Speed
 Easy-to-use
 Inoffensive and Protective Products

13. HAIRSTYLE TRENDS IN ASEAN

14. HARAJUKU STYLE
INFLUENCES : JAPANESE ROCK / MANGA RESULTS : HARAJUKU STYLE

15. SPIKY STYLE
INFLUENCES : PUNK MOHAWK RESULTS : INDIE / ASIAN MOHAWK

16. EMO STYLE
INFLUENCES : EMO / GRUNGE / PUNK USA RESULTS : EMO STYLE

17. BRITISH STYLE
INFLUENCE : UK POP RESULTS : BRITISH STYLE

18. Available types of products
Evolution 2005/2010 (source: Euromonitor)
Wax
+7,1 pts
Styling Cream
- 7,58 pts
Gel
+2,1 pts
Spray
- 1,04 pts

19.  Awareness
 « The magic of science »
 Innovative Power

20. L’Oréal Range
 3 products in the form of wax
 13 products in the form of gel

21. Current Offer
Ranges which fulfill the need of Stylistic Freedom
BUT no range meeting the needs of:
 the 4 trendy hairstyles
 speed

22. Problem Statement
How can l'Oréal Paris stand for this following insight:
« I am looking for a protective wax, easy-to-use
and which allows me to be trendy »
Meanwhile keeping these two core values :
Innovation and Technology

23. Les 4 principales
tendances hairstyle
en ASEAN
3
OUR INNOVATION

26. The promise of our offer
 Speed
 One wax = One Haircut
 Protection

27. Value proposition
 Graphical Charter L’Oréal Paris
 Graphical Charter Studio Line
 Molecules / Active Principles on the packaging

30. Chemical approach
Common Formula:
UVA/UVB Filters > PROTECTION
LAK 1000
Lactic Acid
LAK Technology Repair > CARE
Alkoxysilanes > LONG LAST DURATION
Products differenciation:
Different proportion of bright and fixing agents
PRODUCT BENEFIT:
A protective and express-use wax

31. HARAJUKU STYLE
STRENGTH:
RESULT: HARAJUKU STYLE
BRILLIANCE:

32. SPIKY STYLE
RESULT: INDIAN / ASIAN MOHAWK
STRENGTH:
BRILLIANCE :

33. EMO STYLE
RESULT: EMO STYLE
STRENGTH:
BRILLIANCE :

34. BRITISH STYLE
RESULT: BRITISH STYLE
STRENGTH:
BRILLIANCE :
Price : $6,5

35. Creative Idea
GET A TRENDY LOOK
IN 30 SECONDS

36. Route-to-market (1/5)
Consumer
Events

37. Event Campaign
 Partnerships with Music Festival
 Communication through our brand ambassadors:
Ranbir Kapoor as Indian ambassador
Irwansyah as Indonesian ambassador
Peter Davis as Malaysian ambassador
Yuk Song Paisan as Thai ambassador
Cong Vinh as Vietnamese ambassador
 Street marketing

38. KUALA LUMPUR, MALAYSIA

39. PHOTO BOOTHS
Linked to :
 Website
 Social Networks

40. Route-to-market (2/5)
Events Billboards
Consumer

42. Route-to-market (3/5)
Billboards
QR Codes
Internet
Events
Consumer

43. 30’’ chrono to get your
hairstyle! Watch the video to
know how!
1/3

44. Route-to-market (4/5)
Billboards
QR Codes
Internet
Events
Smartphones
Consumer

45. Digital Communication
 Facebook: « Chronostyle » community
 Trendsetters
 Instagram: « Like » competition
 Referencing for « men hairstyle » in ASEAN
 Smartphone Application

48. Route-to-market (5/5)
Billboards
QR Codes
Internet
Events
Smartphones
Distribution
Consumer

49. Distribution:
Indonesian hub
Indian hub
From HUB to:
Traditional retailing Modern retailing

51. MID-TERM STRATEGY
6-month strategy:
Objective: awareness and visibility (360° communication,
digital communication, presence on POS)
The next 18 months:
Development of customer relationship to generate loyalty
and communication around the product
New street marketing concepts
Visibility on shelves through POS-A
POS interactive terminals

52. 2014 BUSINESS PLAN
Styling agents Forecasts:
$ 393 million
WITHOUT INNOVATION WITH INNOVATION
Market Share: 14% Market Share: 22%
Turnover Studio L: $64 m Turnover Studio L: $86 m
Segment leader in 2014...
$ 22 million generated
Thanks to “Chrono Style”!

53. Globalization
China
> Trends cross-over
> Presence of the main competitor Gatsby
> China = 5% of L’Oréal worldwide sales
(3rd biggest market)
> Similar climate
Japan
> Emergence of multi-advantage products

54. THANKS FOR YOUR ATTENTION
15 minutes of presentation = 30 people stylished with:

56. BACK-UP SLIDES

58. Trend followers

59. Competition
- Gatsby: Positioning close to ours but still different
- Price: 6 €
- A specific wax to realize a type of hairstyle
- Younger target: learn how to do their hair
- Different communication tone: funny and offbeat
- No notion of speed and protection

61. Total Population ASEAN: Total Population India:
Link to this graph:
http://populationpyramid.net
/India/2010/
1.225 Billion Inhabitants
15-29 yo: 14.5% Male/13.3%
Female
Link to this graph:
http://populationpyramid.net/SouthEastern+A
sia/2010/
595 Million Inhabitants
15-29 yo: 14.8% Male/ 14.5% Female
Total ASEAN+India: 266 M Male vs 250 M Female (15-29 Y-O)
Effects on Hair (sun, pollution and humidity)
The sun rays darken the human skin but lighten the hair. The ultraviolet rays
of the sun help to break down the keratin and melanin. The hair becomes
lighter and drier. The effect of lightening of the hair due to over exposure to
sun is called sun bleaching. The hair may lose moisture and lose its natural
softness. The exposed head can absorb the sun’s rays directly and also cause
giddiness. Hats or scarves can prevent harmful effects to an extent.
However it is not advisable to be exposed to the sun rays for a long period.
http://health.wikinut.com/Effects-of-over-exposure-to-sunlight/1osb_vjl/

62. Explanation for Marketing WarFare Strategy throuhg Fundamental
Principles:
1. Avoid Areas of likely confrontation (HairCare). A flanking move
always occurs in an uncontested area (HairStyle with
heterogeneity on whole markets)
2. Make your move quickly and stealthily.
3. Makes move that the target will not find threatening enough to
respond decisively ( Gatsby already done similar product…)
Explanation for Manifest Social Trends:
Metrosexual is a neologism, derived from metropolitan and
heterosexual, describing a man generally urban who is especially
meticulous about his grooming and appearance, typically spending a
significant amount of time and money on shopping as part of this. (Mark
Simpson)

63. SWOT
Strenghts Weaknesses
• Strong brand awareness
• Notoriety
• Ability to innovate
• Limited presence in ASEAN
Opportunities Threats
• Strong wax and gel growth
• Trendy hairstyle
increasingly popular
• A demand for simple and
quick-to-execute hairstyles
• A strong competitor:
Gatsby

64. Hairstyle trends sources
Taïwan
http://koalasplayground.com/2011/02/28/a-look-at-the-leading-men-of-taiwan-entertainment/
http://image.yesstyle.com/assets/42/575/l_p1022257542.jpg
Philippines
http://i932.photobucket.com/albums/ad162/hambisyosa/daily2/D2-210.jpg
http://imageshack.us/photo/my-images/217/men3b550.jpg/
India
http://www.zimbio.com/Mens+Hairstyles/articles/i7NtfL1NyuN/indian+men+hairsty
le
http://www.photofurl.com/indian-men-hair-styles-long-short-medium-hair-cuts-pictures
http://www.joy2day.com/fashion-and-showbiz/men-corner/hair-styles/
asian/style1.php
Malaysia
http://malaysia.booshay.com/jsp/WAppServerPage.jsp?TransID=RVOTES00&VoteI
D=10830
http://www.76style.com/tag/men
Indonesia
http://mandom.co.id/product.php?lang=EN&topcat=1000061&subTopID=1000073
&parentcat=1000096&cat=1000106
http://www.mandom.co.id/yourlook.php?lang=EN&cat=1000462

65. Distribution
http://beauty-indonesia.com/l-oreal-in-indonesia?lang=ehttp
htpp://beauty-india.com/categories/3?lang=enn