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Loreal Branstorm

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  1. 1. L ina G natyuk M argarita K ostyuk O leg L ubarets K yiv N ational E conomic U niversity
  2. 2. T he M arket
  3. 3. <ul><li>T he main trend at the market of beauty products is its active growth. </li></ul><ul><li>T he sales volume was about 2,3 billion USD last year and 3 billion USD this year. The growth is 30%. </li></ul><ul><li>T he overall potential of the Ukrainian market today is estimated to be 8-10 billion dollars. </li></ul><ul><li>A t the same time, the situation at the world market of the beauty products for men is not so good. </li></ul>
  4. 4. <ul><li>N owadays there are : </li></ul><ul><li>− more than 5000 kinds of products ; </li></ul><ul><li>− and more than 290 product ranges . </li></ul>
  5. 5. <ul><li>T hey include: </li></ul><ul><li>− а ftershave products; </li></ul><ul><li>− special products for bath and shower; </li></ul><ul><li>− wipes, killing bacteria; </li></ul><ul><li>− lotions; </li></ul><ul><li>− shampoos; </li></ul><ul><li>− hair coloring and styling products; </li></ul><ul><li>− clear nail polish; </li></ul><ul><li>− etc. </li></ul>
  6. 6. <ul><li>A ccording to the results of the researches in Ukraine: </li></ul><ul><li>− 68,4% of the population use cosmetics; </li></ul><ul><li>− 88,2% of them are women; </li></ul><ul><li>− 11,8% of them are men. </li></ul><ul><li>T he growth of the segment of male cosmetics is about 13,5% per year in Ukraine over the past 5 years. </li></ul>
  7. 7. <ul><li>A ccording to the results of the researches in Germany: </li></ul><ul><li>− 60% of men are interested in products for skin care and body care; </li></ul><ul><li>− 42% — in perfumes; </li></ul><ul><li>− 10,8% — in decorative cosmetics. </li></ul><ul><li>B esides, the bigger amount of men is supposed to use it. They just refuse to admit it. </li></ul>
  8. 8. <ul><li>M en are: </li></ul><ul><li>− loyal; </li></ul><ul><li>− conservative . </li></ul><ul><li>… to the cosmetics and producers they like. </li></ul>
  9. 9. <ul><li>V isiting the salon s : </li></ul><ul><li>− y oung people ; </li></ul><ul><li>− older men think of salons being the women’s only. </li></ul>
  10. 10. <ul><li>T he differences between sexes concerning their using the cosmetics tend to disappear over the last years. </li></ul><ul><li>T he growth of the market of male beauty products is expected to be 42% in 2012. </li></ul>
  11. 11. T he C haracteristics O f D istribution C hannels
  12. 12. <ul><li>T he distribution channels of L‘Oreal: </li></ul><ul><li>− direct distribution from the factory; </li></ul><ul><li>− distribution through retailers (supermarkets, chemists); </li></ul><ul><li>− direct distribution to hairdresser-salons through a network of sales-representatives; </li></ul><ul><li>− distribution through specialist cash-and-carry outlets (profess. hairdresser products); </li></ul><ul><li>− distribution intensity: intensive distribution — attempt to achieve market coverage via multiple distribution channels (direct distribution vs. indirect through intermediaries) + selective distribution for special brands. </li></ul>
  13. 13. <ul><li>L ‘oreal is distributing its products to: </li></ul><ul><li>− a large number of small customers (ultimate consumers -> households) -> better to use channel intermediaries ; </li></ul><ul><li>− fewer buyers who buy bigger amounts -> service providers -> professional hairdressers -> better to use direct distribution ; </li></ul><ul><li>− local and clustered customer base for certain brands; </li></ul><ul><li>− distribution only in given geographic areas and specially ; </li></ul><ul><li>− chosen salons -> better to use direct distribution. </li></ul>
  14. 14. T he C onsumers
  15. 15. <ul><li>I t will be necessary to note that the men’s only barber shops don’t exist in Ukraine at all. </li></ul><ul><li>T he situation with the hair salons is not much better. </li></ul><ul><li>H ere is the details. </li></ul>
  16. 16. <ul><li>W e analyzed the current market situation, using the questionnaire s. </li></ul><ul><li>O ur team have created on-line and paper questionnaire s. </li></ul>W e analyzed the current market situation, using the questionnaire s. O ur team have created on-line and paper questionnaire s.
  17. 17. <ul><li>A nd here is the results. 31 respondents were polled. </li></ul><ul><li>A mong them: </li></ul><ul><li>− the frequent visitors at hair salons — 20%; </li></ul><ul><li>− men who don’t go to hair salons — 80%. </li></ul>
  18. 19. <ul><li>M ost of those who go to hair salons, do it about once a month. </li></ul><ul><li>T hese people explain their choice (meant they go to hair salons, not to barber’s or hairdresser’s) by the high quality of the services. </li></ul><ul><li>M ost of them are completely satisfied with existing services and haven’t any especial requirements. </li></ul>
  19. 20. <ul><li>M ost of those who don’t go to hair salons are completely satisfied with the services of barber’s. </li></ul><ul><li>H alf of them declare that nothing can prompt them to go to hair salons. </li></ul><ul><li>B ut another half of them say that they will go to salons under certain conditions. </li></ul><ul><li>I f we can make these men go to salons, we will triple (!) our income. </li></ul>
  20. 21. <ul><li>N ow: </li></ul><ul><li>− go to hair salons — 20%; </li></ul><ul><li>− don’t go to hair salons — 80%, 50% of them are ready to change their decision. </li></ul>
  21. 22. <ul><li>I f we are able to do it, the situation will be completely different: </li></ul><ul><li>− go to hair salons — 60%; </li></ul><ul><li>− don’t go to hair salons — 40%. </li></ul><ul><li>I t is evidently that we can change the situation drastically. </li></ul>
  22. 23. <ul><li>I t’s necessary to say that the amount of men who go to hair salons tends to increase lately . </li></ul><ul><li>S o it is really possible to attract more customers to hair salons and then sell more our products to hair salons. </li></ul>
  23. 24. T he C ompetitors
  24. 25. <ul><li>O ur main competitors: </li></ul><ul><li>− Wella; </li></ul><ul><li>− Schwarzkopf; </li></ul><ul><li>− GOLDWELL; </li></ul><ul><li>− Combe. </li></ul>
  25. 26. <ul><li>W ella </li></ul><ul><li>B rand Positioning: professional hair care, hair products. </li></ul><ul><li>O ur vision is to deliver Wella into a new and exciting era — because where we walk, others will follow. That's why, from now on, you'll experience a newer, fresher Wella. Give your hair the expert treatment! Create healthy, beautiful looks with our collections . Specially formulated for intense shine and care between salon visits, our products help you style and maintain fantastic looks. </li></ul>
  26. 27. <ul><li>S chwarzkopf </li></ul><ul><li>F or your salon we have Colour and Form technical brands developed for professionals to give you high quality and consistent results. </li></ul><ul><li>F or your clients we have modern and stylish over-the-counter Care and Finish products allowing them to continue the salon experience at home. </li></ul><ul><li>A nd for your business we have promotion & merchandising support to maximise your salon’s potential. </li></ul>
  27. 28. <ul><li>G OLDWELL </li></ul><ul><li>W e are a company operating in the international arena which develops hair products and services and exclusively supplies these products and services world-wide to hairdressing professionals. </li></ul><ul><li>F ollowing the principle «better to offer a complete range to one type of client than one item to a range of clients», we focus all our energy on fulfilling the highest requirements regarding innovative effective technology and up-to-the-minute style of our products. </li></ul>
  28. 29. <ul><li>C ombe </li></ul><ul><li>W e work in 5 minutes, not 30 or even 45 minutes. And we target only the gray hair, for a natural look. </li></ul><ul><li>E very one of our brands, in every country around the world we sell in, has a unique and meaningful point of difference. We look different. We sound different. And we deliver different benefits. </li></ul><ul><li>W hen a brand meets a consumer need in a truly unique way, you can take it all over the world. And that's exactly what we've done. </li></ul>
  29. 30. T he T argets
  30. 31. <ul><li>W ella </li></ul><ul><li>O ur fundamental principles remain unchanged: </li></ul><ul><li>− raising the benchmark of creativity and technical skills for all hair professionals; </li></ul><ul><li>− empowering salon owners, through partnership, to grow their business; </li></ul><ul><li>− lnspiring the industry through bold leadership and innovation. </li></ul>
  31. 32. <ul><li>S chwarzkopf </li></ul><ul><li>O ur destiny is to develop innovative technologies in products that create beautiful hair. Our goal is to enhance your individual style, simplify your beauty regime and ultimately exceed your expectations. </li></ul>
  32. 33. <ul><li>G OLDWELL </li></ul><ul><li>W e want to create products based on latest innovations and technology. </li></ul><ul><li>W e want to combine the energy and capabilities of each individual to present one strong unified force. </li></ul><ul><li>O ur business is geared towards achieving high level of harmony with nature and society at large. </li></ul>
  33. 34. <ul><li>C ombe </li></ul><ul><li>W e'll expanded our global category leadership through product innovation and strategic acquisitions. We’re entering exciting new markets like India. And we’ll exporting our latest successful U.S. brand launches to Europe, Latin America, and every other market in the world where we can. </li></ul><ul><li>I t's a great big world. And everywhere we look, we see new opportunities. </li></ul>
  34. 35. S WOT
  35. 36. T hreats − influence of competitors , especially their opportunities concerning hair coloring products ; − the level of income isn’t high enough *; − cultural features *; − quality of services in salons ( personnel , process etc .); − prices for salon services . O pportunities − men are not informed of « Man Perfect » produced by Schwarzkopf , so they hardly will buy this product ; − the products are not tested on animals and they are environmentally safe ; − positive attitude of customers . E xternal environment W eaknesses − the « Man Perfect » made by Schwarzkopf is similar to « Cover ’5 » and excels it in some characteristics − not all the potential salons are enveloped ; − small volume of the target group (meant actual customers i.e. men) ; − the product range doesn ’ t include the hair coloring products . S trengths − experience and image of the company ; − uniqueness of L ’ Oreal Professionnel Homme brand ( analogues don’t exist ); − awareness and positive attitude of the salons ; − effective promotion ; − positioning and image of the brand ; − optimal prices . I nternal environment N egative influence P ositive influence
  36. 37. − cultural features of certain countries put obstacles in the way of implementation of abilities of the range ; − personnel and process in salons are out of control, so if they aren’t good, they will frighten off the customers . − according to the research, the level of Income isn’t a crucial factor, so the low level of income can’t make the quantity of consumers reduce ; − products are easy to use , so low - quality service in salon is impossible . T hreats − influence of competitors , especially their opportunities concerning hair coloring products ; − the level of income isn’t high enough *; − cultural features *; − quality of services in salons ( personnel , process etc .); − prices for salon services . − «Man Perfect» has a web site. A consumer can find there everything he needs ; − t here is a threat of creation the hair color products for men only by any other company. − loyalty program s for existing customers and attracting programs for new customers ; − ability to position the range as the ecologically safe products and which have the optimal prices. O pportunities − men are not informed of «Man Perfect» produced by Schwarzkopf , so they hardly will buy this product i ; − the products are not tested on animals and they are environmentally safe; − positive attitude of customers. W eaknesses − the «Man Perfect» made by Schwarzkopf is similar to «Cover ’5 » and excels it in some characteristics; − not all the potential salons are enveloped ; − small volume of the target group (meant actual customers i.e. men) ; − the product range doesn ’ t include th е hair coloring products . S trengths − experience and image of the company; − uniqueness of L ’ Oreal Professionnel Homme rand ( analogues don’t exist ) ; − awareness and positive attitude of the salons; − effective promotion; − positioning and image of the brand; − optimal prices.
  37. 38. T he N ew P roduct R ange I ron C law <ul><li>H air Care products </li></ul><ul><li>S trengthening shampoo for man - gently cleanses & strengthens damaged or chemically-treated hair; Helps restore hair's vitality & elasticity; </li></ul><ul><li>T his shampoo can totally bring dry, brittle hair back in shape without having to cut it all off. Use it for a month in conjunction and you will notice an incredible difference. </li></ul><ul><li>M ask Hair Loss Solutions — A mask conditions and nourishes your hair from the root to the tip of the hair folicle. It work’s fast you can use it only when you gets the shower. </li></ul>
  38. 39. <ul><li>N ew Hair color line for man is really amazing. This means hair color is quick and easy-to-use. </li></ul><ul><li>I t discreetly and effectively blends away gray in minutes, fits perfectly to your natural haircolor. 20 different colours and tones will provide you needs to be satisfied. </li></ul><ul><li>N ow you can colour not only hair but also mustaches, beards and sideburns. For making process easier in the set of coloration you can find convenient facilities. </li></ul>H air C olour
  39. 40. H air S tyling & A ccessories <ul><li>H air MOUSsE — invisible and flexibility is the main advantages of this mousse. You’ll feel a natural volume and hair shine. This mousse could not lead to your hair looking crunchy and look artificial. Nothing can make more natural and soft look to the hair and at the same time provide a reliable hold. </li></ul>
  40. 41. F ace C are P roducts <ul><li>A ftershave lotion — If the man wants to Soothe, soften and moisturize his skin aftershaving using an easily-absorbed lotion with a clean, fresh fragrance. With this Aftershave lotion you can forgot about skin irritation. </li></ul><ul><li>S having cream — Shaving process can be easy and enjoyable with this shaving cream. Specifically engineered to soften tough, coarse facial hair. Is specially engineered to normal skin with a unique combination of natural ingredients which work together to prevent razor drag and reduce razor burn and nicks. </li></ul>
  41. 42. S alon E xperiment
  42. 43. <ul><li>T he involvement of new customers is one of the expensive problems. The segment of the cosmetics market of L’Oreal doesn’t cover the crtain part of the population. Certainly, it affects the profit of the company. In order to attract new visitors, we offer several ideas that may be implemented in beauty salons. </li></ul>
  43. 44. <ul><li>W e offer some innovative services: </li></ul><ul><li>- the cleaning of dandruff for a short period of time (using special oils and massage brushes); </li></ul><ul><li>- program selecting the hairstyles according to the photos; </li></ul><ul><li>- making photo before and after the haircut in order to have an ability to compare; </li></ul><ul><li>- the TV-sets for every customer. It can be mounted into the mirror. The catalog of films, videos and music will be offered to every customer; </li></ul><ul><li>- a special working clothes for staff; </li></ul><ul><li>- express date service: styling, skin cleaning, manicure, shaving (when it’s needed). </li></ul>
  44. 45. <ul><li>A ttracted customers should stay with us, so we must keep them. That’s why we offer a discount program for the customers using our products. Every visitor will get a discount card for the services provided with L'Oreal products if he has used it at least for five times. </li></ul>
  45. 46. <ul><li>E very client will be put into the database of the company. He will receive the newsletters about the current offers and the congratulations with his birthday and New Year. </li></ul><ul><li>W e offer family discounts system. They will be even larger than the individual ones. </li></ul>
  46. 47. A dvertisement
  47. 49. N atural S urvival
  48. 50. N atural S urvival
  49. 51. S tranglehold
  50. 52. S tranglehold
  51. 53. G lorious T riumph
  52. 54. G lorious T riumph
  53. 55. F ight for being the leader