The final report is comprised of 3 parts: 1. Main insights for the brand on the French market 2. A TOWS analysis with the recommended strategy - Online and Mobile Application 3. The presentation of the concept for Olay and a positioning statement

1. MARKETING MANAGEMENT
French Skin Care Market Naveen Kumar - Lorenzo Meciani - Kien Nguyen
Rania Meddeb - Paul Nguyen

2. CONTENTS PAGE
1. PESTEL ANALYSIS
2. INDUSTRY ANALYSIS
3. RESEARCH METHODOLOGY
4. CUSTOMERS INSIGHTS
5. INTERNAL ANALYSIS
6. COMPETITORS ANALYSIS
7. MARKET SEGMENTATION
8. POSITIONING STATEMENT
9. OLAY PRODUCT MIX
10. PROMOTION
11. PLACE
12. PRICE

3. PESTEL ANALYSIS
Political & Legal Social & Culture Economics
- Growing political focus and
pressure on Healthcare
- Need for a responsible referent
- All the regulation about the
cosmetic products
- Evaluation on the safety of the
cosmetic product
- Respect of the composition
rules for skincare products
(restrictions or even interdiction of
certain ingredients)
- Eco friendly
- 15-24 years: 11.9% (male
4,01825-54 years: 38.6% (male
12,851,278/female 12,719,073)
- Testing on animals is
considered unethical. ,044/female
3,837,191)
- It can affects Brand name.
- French GDP growth record for
the last years was dim.
- Inflation steadily moved
towards 0.
- Disposable income regressed
or at best was stagnating.
- Current account continues to
be significatively negative (-0,7%
of GDP).
- Unemployment grew and
reached 10.3% general and
10.1% among women which are
presumably the most important
market of skincare products.

4. PESTEL ANALYSIS
Environment/ Ecology Technology
- Growing environmental agenda and the key stake
holders are now becoming more aware of the
environment.
- Respect of the composition rules for skincare
products
- BIO certification: 95% minimum of the ingredients
from natural origin, transformed according to agreed
procedures and 10% minimum of the ingredients
have to come from the biological agriculture.
- Debate about the test on animals(The new guide of
Cosmétox by Green Peace)
- Debate about paraben, phthalate, formaldehyde
- Respectful packaging and greenwashing
- Expand of social media: Facebook, Twitter, Youtube
→ Online instructions (video clips, news…)
- Customisation (modify the packaging for many
different purposes, like Pepsi)
- E-commerce (Alibaba, Amazon…)
- Logistics (Drone…)
- Online customer support (24/7)
- Smartphone
- Investment in Research and development sector to
explore more about gene therapy and tissue
engineering technologies.
- Expanded Logistics network and e-commerce
support available.

5. INDUSTRY ANALYSIS
Facial Care Retail Market in France

6. INDUSTRY ANALYSIS

7. Primary data
- Collect data via interviews and online
questionnaires survey via E-mail.
- All age groups to be interviewed
- In-store observation.
Secondary data
- Using free online resources (Articles, EDHEC
library…)
To implement our research plan, we will follow 4 steps:
1. Finding market challenges
2. Collecting Data
3. Review and analyze market research data (SWOT, TOWS…)
4. Make strategic marketing decisions
RESEARCH METHODOLOGY

8. After Doing survey with people (aged in their 30’s), we were able to
extract the following information below:
1. Consumers brand loyalty increases with ages.
2. Inclination towards bio-clean products.
3. Influence of peers and social circle to purchase cosmetic products.
4. Unaware of the products due to many cosmetic brands in the market.
5. Unorganized presentation of the products
CUSTOMER INSIGHTS

9. • Procter & Gamble Co., also known as P&G, is an American multinational consumer goods company
• In 2014, P&G recorded $80.5 billion in sales, 180 countries world wide
• Olay has a huge contribution in Beauty sector
Fabric and Home Care
Baby, Feminine and
Family Care
Beauty Health and Grooming
INTERNAL ANALYSIS

10. Human
Resources
- P&G total 110000
employees in 2015
- “Hire the person not
the position” – P&G
- Utilization of
Groupwork
→ Each is a
motivated leader with
wealth of knowledge
and skills
Culture
- Diversified culture
and workforce.
- Principles and
values are core
strengths of the
cultural segment.
(Integrity,
Innovation,
Productivity…)
Financial Situation
- Net sales in 2014 is
$80.5 billion
- R&D expenses were
$2 billion in 2014
Innovation
“Product innovation is
the lifeblood of our
business” – P&G
(Annual Report 2015)
Reputation
INTERNAL ANALYSIS

11. OLAY L’ORÉAL
Missions and Goals “Maintain a deep understanding of
women’s changing needs and to combine
products that fit their needs with the latest
advances in skin care technology”
“Offer all women and men worldwide the best of
cosmetics innovation in terms of quality, efficacy and
safety. By meeting the infinite diversity of beauty
needs and desires all over the world.”
Market shares in
France
Insignificant Current market leader (23% market share in 2013 and
24% market share in 2014)
Products & Services - Women: Cleanser, Moisturizer, Treatment,
Facial Hair Remover
- Online Consultant
- Women: Face Cleanser & Toner, Facial Oil, Serum,
Day & Night Moisturiser, Eye Cream
BB Cream, Blur Cream
- Men: Face Wash & Scrubs, Moisturiser, Eye Cream
- Online Consultant
Technology Skinpedia: Tips, How-to Video
Youtube, Social Media
- The same with OLAY
- IOS App: Makeup Genius
Price Variable Variable but still higher in general
We choose to L’Oréal as the main competitor because the products are substituted and L’Oreal is a market
leader in France.
COMPETITOR ANALYSIS

12. Strengths
1) High Capital to invest.
2) Global Brand image.
3) Creative Research and
Development team.
Weaknesses
1) Not so reputed in France.
2) Lack of online platform in France (
website and application)
3) Testing of products on animals.
Opportunities
1) Evolving technology: Social
media, Logistics, E-commerce.
2) Large skin care market.
3) Product customization trend.
4) Keen interest in natural and
multi-purpose products.
Strengths and Opportunities
1) Investment on online platform to
tap the young population (20- 35
years). ( S1 & O1,O2)
2) Online customer support for OLAY.
3) Customization of the products. (
S3 & O3)
Opportunities and Weaknesses
1) Marketing through social media to
reach out to a larger
population.(W1 & O1)
2) Develop a creative online portal
via website and applications for
sales. (W2 & O1)
Threats
1) Saturated skin care market.
2) Strong Competitor with a large
market share (L’Oreal).
3) Environmental regulations.
Strengths and Threats
1) Develop and offer products to
attract price-sensitive customers.
(S3, S1, T1)
2) Investment in Research and
Development to tackle
Environmental issues (S3 & T3).
Weaknesses and Threats
1) Increase brand awareness via
marketing. (W1, T1, T2)
2) Adapt Eco-friendly methods to
make and test products. (T3 & W3)
SWOT & TOWS ANALYSIS

13. Criteria used for the
segmentation:
- Demographic: age, gender
-Behavioral: Shopping
patterns (In-store and online),
Product usage, convenience
of purchase, benefit sought:
skincare.
- Psychographics: lifestyle
(Active+ Urban), time-
constraint.
Skincare Queens Smart Skincare
lovers
Simple and
Basic
MARKET SEGMENTATION

14. - Spending lavishly without caring
- Being aware of the latest trends and product
developments
- Buying a lot online but also goes to physical
stores to test the products
- Using skincare products to have a better looking
skin (looking for a glowing skin, bright & shiny
etc).
MARKET SEGMENTATION
Skincare Queens

15. - 18-30 years old
- They are looking for optimum benefits of a
skincare product.
- They are conscious about the skincare
products and spend time looking for information
about products and sales.
- They find the best products with reasonable
price.
- They have an active lifestyle, so they do not
have a lot of time to shop (constraint of time).
MARKET SEGMENTATION
Smart Skincare Lovers

16. - Health seeker: just wants to have a good
hygiene and a nice skin.
- Price sensitive.
- Does not use a lot the Internet, rely on the
traditional physical stores.
- Seek for acceptable satisfied product.
MARKET SEGMENTATION
Simple and Basic

17. Weight Rating (0-10) Total
Segment Attractiveness Factors
Customer needs and behaviour
Segment size and growth rate
Macro trends
Total: Segment attractiveness
0.5
0.2
0.3
1.0
8
7
9
4.1
1.4
2.7
8.2
Competitive Position Factors
Opportunity for competitive advantage
Capabilities and resources
Industry attractiveness
Total: Competitive postion
0.4
0.3
0.3
1.0
8
6
6
3.2
1.8
1.8
6.8
TARGETED SEGMENT - Smart Skincare Lovers

18. “Among skin care markets, Olay is the brand of beauty products
that makes you look elegant because of its quality scent and
strong performance”
“Dans le marché des produits de soin pour la peau, Olay est la
marque qui vous fait sentir élégant grace à sa qualité et sa
performance”
POSITION STATEMENT

19. Cleanser Moisturizer Treatment Body Facial Hair
Remover
- Face Brush &
Exfoliator
- Face Wash &
Toner
- Wipes &
Towelettes
- Make-up
Remover
- BB CC Cream
- Daily Moisturizer
- Night Cream
- Serum
- Sun Protection
- Eye Skin Care
- Face Oil
- Micro-
dermabrasion
- Primer
- Specialty
- Bar Soap
- Body Lotion
- Body Wash
- Fine to
Medium
- Medium to
Coarse
Product Mix Width
ProductLineLength
Product Line Depth
Skin: Anti-Aging, Dry skin, Oily Skin,
Sensitive Skin…
OLAY PRODUCT MIX

20.  Compare Olay’s products with other large competitors in French market, they have quite similar
products.
 We believe that those products of Olay will fit perfectly with customers’ demand in the Smart
Skincare Lovers segment.
PRODUCT MIX: L’OREAL
Choosing L’Oreal as our direct competitor, we examine their product mix and make comparison
Products Concerns
• Eye Cream
• Face Serum
• Facial Cleanser
• Facial Oil
• Facial Moisturizer
• Makeup Remover
• Night Cream
• Self-Tanner
• Sunscreen for Body
• Sunscreen for Face
• Anti-Aging
• Dark Circles
• Dark Spots
• Dry Skin
• Fine Lines & Wrinkles
• Sagging Skin

21. OLAY MOBILE SHOPPING
- Suitability: It utilizes the opportunities and strengths of Olay, as mentioned in SWOT and
TOWS analysis
- Acceptability: The platform itself can last for long, premium services would be added or
modified later to generate sales, The risk of this idea is small. Create a new way of
customer interaction  stimulate sales
- It involves a lower amount of sunk costs and investments compared to creating a new line
of products for France
- It indicates new added value, other competitors do not develop a similar attribute like this

22. - As the segment it Smart Skincare Lovers, they have an active lifestyle, do not have much time to look
for information and they are conscious of product quality vs. price
- The Olay Mobile Shopping will satisfy all these most important attributes, with the favor of product
customization idea. Customers are required to log in with their Facebook profile, or create a new one.
- Our customers can look for information at anywhere, anytime
- All the information is up to date, even the latest products or coupons available
- Provide suggested products base on their previous purchases
- Give advices, tips, product instruction and the notification for using schedule everyday
- Personal Beauty Consultant service
- The most important added value is, to create a community, that customers all around the world can share
experience, comment and feedback about the products, make questions and receive the answer from other
customers.
OLAY MOBILE SHOPPING

23. Target audience: Smart skincare Lovers
• Young connected professional people
• Female from 18-30 years old (which is around 10 mil. customers)
• Ease of shopping experience based on lifestyle (Digital E-commerce).
Communication Objectives:
- Increase awareness of all Olay products as the top quality beauty
products and Influence professional lifestyle with the new digital
experience of shopping.
- Reach 50% of the potential market awareness by June, 2016
PROMOTION

24. PROMOTION
• In order to increase the customers reach point, we propose to use celebrities
images to promote for our products. We will invest in advertisement about Olay
brand and new shopping experience via Internet (such as social media, blog…)
Constance Jablonski, our brand ambassador
• French model very active on social media (twitter,
instagram, facebook…)
• Suits our target : smart skin care lovers that are active on
the internet

25. Communication mix: Non-personal and Personal
channel
Above the line
 TV advertising, magazines
 Outdoor activities in malls and stores to distribute samples.
Below the line
 Direct mail
 Social media: Facebook, Instagram, Youtube…
 Voucher, coupons to users of Olay Mobile shopping application
Moreover the Olay app will help to choose products, to discover new
products, to know how to use them thanks to personal diagnosis
application
 Flash sales : one day sales on Venteprivée website for example
 Free samples, some of them sent to famous bloggers with a lot of
followers
PROMOTION

26. Measurement
• Advertisement / communication: quantitative and qualitative
surveys to measure the scope of the advertising campaign
effectiveness.
• Sales volume: analysis of the sales volume through time
• Number of application downloaded and new account created
Promotion budget
• The main competitor (L’Oreal) promotional budget is 6.5
million*.
• Hence the to compete with them, the investment would be
around the same figure.
• The main form of marketing would be digital marketing.
PROMOTION

27. The distribution channel will be selective: the mix between
supermarket Carrefour and online sales
- Increase the availability of Olay in France, especially
when Olay is new to French customers
- Develop a functional and simple online shop
While other competitors in France are applying strategy of
intensive distribution, the strategy of selective distribution
will:
- Reduce the total marketing costs
- Establish the strong relationship with Carrefour, one of
the biggest supermarket chain in France
PLACE

28. Online distribution
• The online nature of the strategy we choosed implies that P&G will
have to rely on local couriers or delivery services
• Considering the position of P&G storehouses and production
facilities in France (2 distribution centres in Amiens and St. Quentin
Fallavier, 3 production sites in Amiens, Blois and Sarreguemines)
• For the first 6 months, the target should be Metropolitan France as
the dependencies are too decentralized
• After, the online distribution will expand to other parts of France
PLACE

29. How to convince Carrefour?
• Offer exclusivity (the only distributor in France)
• Olay reputation (top global quality product)
• Investment of Mobile shopping, suggest the nearest locations of Carrefour (the
only distributor) to customers
• Base on Olay sales in other European countries, it has a great sales potential in
France
Shelf-position: Negotiate to be placed at the eye level, and organize
promotional indications next to Olay products
PLACE

30. As the Olay is performing really well in other European countries, so the
currently prices of Olay products are considered reasonable.
In order to penetrate into France market, the pricing strategy is
• Objectives: market penetration, gain the market share and customer
awareness
• The price of mobile app is free, as well as other extra mobile services
• For the first 3 months, the price of Olay products will be sold with 10%
discount. Customers who set up account and follow all the instruction steps of
the Olay mobile app will get another 5% discount.
PRICE

32. APPENDIX 1 - SOURCES
• CIA WORLD FACTBOOK
• HTTP://WWW.RANKINGTHEBRANDS.COM/THE-BRAND-RANKINGS.ASPX?RANKINGID=196
• http://www.pg.com/en_US/brands/global_beauty/olay.shtml
• http://www.olay.ca/en-ca/skin-care-products
• http://www.loreal-finance.com/eng/brands