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L'Oréal Brandstorm 2015 Presentation
L'Oreal is the leader in the beauty category in the travel retail market. The travel retail market is continuously growing due to increasing air traffic. L'Oreal's strengths include its brand image and existing distribution channels, while weaknesses include being perceived for an older demographic and relying heavily on third party retailers. Recommendations to capitalize on opportunities in the growing market include improving the in-store experience, designing new store concepts, and partnering with airlines to offer duty-free shopping on flights. The goal is to transform shopping into a memorable experience for travelers.
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L'Oréal Brandstorm 2015 Presentation
- 1. Travel Retail The Lancômmers Aidanaaitzhanova | Arthur Bellanger | Christina Chen Nov 25, 2014
- 2. AGENDA Current market situation Travelretail market situation Current trend Consumers Future trend Competition SWOT Recommendations
- 3. L’Oreal is theleader in Beauty Western Europe 35.1% North America 25.1% Asia, Pacific 25.1% CURRENT MARKET SITUATION SKINCARE | HAIRCARE | MAKE-UP are the leaders MARKET ENVIRONMENT SWOT RECOMMENDATIONS
- 4. Market Situation: TravelRetail Air traffic is continuously growing by 5% on average per year Over 6 billion international flights in 2013 L’Oreal is LEADER in BEAUTY category of the TRAVEL Retail Airports 57% Downtown Duty Free Shops 33% Airlines 6% Cruises 4% MARKET ENVIRONMENT SWOT RECOMMENDATIONS
- 5. Global shopper glō-bəlshä-pər noun 1. Fashion addict consumers from emerging countries. 2. Middle class that travel outside their country. 3. Shops everywhere. 4. Internet addicts; device equipped. 5. Impulsive purchase at airports. MARKET ENVIRONMENT SWOT RECOMMENDATIONS
- 6. Technology savvy Most traffic:Istanbul, Doha (Qatar), Kuala Lumpur (Malaysia), Dubai Great way to expose brand to more consumers Consumers have to be exposed to the shops to get to their gates CURRENT TRENDS MARKET ENVIRONMENT SWOT RECOMMENDATIONS
- 7. 2. BROWSE 1. GIFT 3.PRICES Why do they go to duty free? MARKET ENVIRONMENT SWOT RECOMMENDATIONS
- 8. FUTURE TREND /AEROMALL Duty free stores in planes Retail experience on the plane Travellers get a chance to try out the products while they are on the plane Location services on mobile phones could soon be helping to synchronize the likes of airport, shopping, taxi and restaurant offerings. (Lancôme partners with major airline companies: KLM, British Airways, etc.) MARKET ENVIRONMENT SWOT RECOMMENDATIONS
- 9. COMPETITION Luxury Mass MARKET ENVIRONMENT SWOT RECOMMENDATIONS
- 10. POSITIONING Price Perceived Luxury MARKET ENVIRONMENT SWOT RECOMMENDATIONS
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- 16. IN-AIRPORT RETAIL PLAN 3alternatives Improving existing in-store experience Redesign store concept & offerings Special & unique new experience MARKET ENVIRONMENT SWOT RECOMMENDATIONS
- 17. #1Offer Hand +Face massage Turned out successful in Beijing 40% of all massages resulted in sale Increase product awareness Minimal cost MARKET ENVIRONMENT SWOT RECOMMENDATIONS
- 18. MARKET ENVIRONMENT SWOT RECOMMENDATIONS
- 19. #2New store design Inspiredfrom Beijing 2014 "Maison Lancôme” - clear success Lancôme Wonderland 3D experience on some occasions Skincare analysis machine Massages Only in very large, key airports (where people spend long hours) Paris|Beijing|Doha MARKET ENVIRONMENT SWOT RECOMMENDATIONS
- 20. #3Stand-alone store: unlabeled polishedblack box with rose symbol Atmosphere of travel retail = weakness Separates Lancôme from the rest of the airport. Allow all senses to experience the Lancôme Magic. Inside: renewed classic store MARKET ENVIRONMENT SWOT RECOMMENDATIONS
- 21. ON-BOARD PLAN 3 Suggestions Firstclass & Business Economy On-board duty free MARKET ENVIRONMENT SWOT RECOMMENDATIONS
- 22. #1Sample package onthe plane for first & business class Affluent women: purchase product afterwards Affluent men: bring it to their wife / daughter creating potential customer MARKET ENVIRONMENT SWOT RECOMMENDATIONS
- 23. Lottery to wintravel-kit 10% of economy passengers win a free kit that is brought to their seat during the flight. Seasonal: During holidays on planes going to Paris. #2 Result: New reach | Potential for viral marketing MARKET ENVIRONMENT SWOT RECOMMENDATIONS
- 24. #3On-Board duty free Replicatethe A-380 of Korean Air L'Oreal on-board shop Partner up with: Singapore Airlines (19 operating, 5 awaiting delivery) Air France (10 operating, 2 awaiting delivery) Emirates (53 operating, 87 awaiting delivery) Thai Airways International (6 operating) MARKET ENVIRONMENT SWOT RECOMMENDATIONS
- 25. Separate consumers fromthe overwhelming airport atmosphere into the Lancôme world. Transform the purchase into an experience rather than a meaningless action. Accompany the consumer from start to end of their journey. KEY TAKEAWAYS
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