dim report l'oreal
TRANSCRIPT
-
8/9/2019 Dim Report l'Oreal
1/23
Direct and Interactive Marketing Management
Coursework: Recommendations Report
Word Count: 3,500 words
Executive Summary
-
8/9/2019 Dim Report l'Oreal
2/23
LOreal Skin Care Revitalift
LOreal is one of the biggest companies in the beauty industry. It was founded in 1909
and soon it became a worldwide famous company which now comprises such well-
known brands as arnier! "ielhs! #edken! Lanc$me.
%his report describes the direct marketing campaign for the anti-aging skin care
collection #e&iatlift proposed by 'I(a) agency.
In order to promote #e&italift collection! direct marketing campaign strategy will
comprise two tactics* ac+uisition aimed at gaining new customers and their retention.
'irect mail! direct response ad&ertising! which comprises billboards throughout the
," and four magaines which are most popular among the target audience! e-
newsletters will be used for ac+uiring new customers through fi&e step approach.
Loyalty scheme and #egular customer updates through website and /acebook page
will be used as part of retention tactic.
ccording to the estimations made by 'I(a) agency this direct marketing campaign
will generate 23!456!000 of re&enue and the #OI will constitute 1*7.6.
Table of Content
8)ecuti&e ummary.......................................................................................................4
%able of :ontent.............................................................................................................6
1. 'irect (arketing trategy......................................................................................;
1.1 Ob
4.1:reati&e ?rief........................................................................................................>
4.4 %actics..................................................................................................................5
4 @ = a g e
-
8/9/2019 Dim Report l'Oreal
3/23
LOreal Skin Care Revitalift
(edia ,sed............................................................................................................5
6. c+uisition =rogramme /lowchart......................................................................16
c+uisition Ob
-
8/9/2019 Dim Report l'Oreal
4/23
LOreal Skin Care Revitalift
%igure: 1Product Life Cycle.
ource:Mintel
t this point the fundamental marketing communication ob
-
8/9/2019 Dim Report l'Oreal
5/23
LOreal Skin Care Revitalift
1.3 egmentation and &argeting
%he target group for LOreal #e&italift includes females aged from ;7 years old and
abo&e! belonging to social classes ?! :1! :4. ccording to the ," Fational tatistics
data! this particular group composes large number in the ," population today.
1./. ositioning tatement
/or modern energetic ambitious women who want to look good and attracti&e at all
times. LOreal #e&italift is the number one multi-action inno&ati&e collection of
products which help to slow down the process of aging. ,nlike other skin care
programmes! #e&italift targets 10 signs of ageing in one which makes it the most
effecti&e anti-aging cosmetic product.
1.5 ositioning Matri+
7 @ = a g e
-
8/9/2019 Dim Report l'Oreal
6/23
LOreal Skin Care Revitalift
%igure :%he ?rand =ositioning* LOreal #e&italift anti-ageing Line &ersus competitors.
ource* own work
ccording to the graph abo&e LOreal #e&italift is percei&ed as a high +uality
collection with reasonable prices compared to other anti-aging products in the same
market. Olay has a slightly lower price but it has worse standard! whereas such
premium +uality lines as :larins! Lancome and 8stee Lauder are much more
e)penci&e. It gi&es LOreal a product ad&antage o&er its competitors.
. Campaign
.1Creative rie'
rand
roduct
LGOrHal roup
kin :are #e&italift
rand 2ssence :aring! re
-
8/9/2019 Dim Report l'Oreal
7/23
LOreal Skin Care Revitalift
ow do we want t*e
target to 'ee( a#out t*e
product a'ter t*e
campaign4
It is necessary to create the image for #e&italift
products as inno&ati&e and being able to slow down
aging! thus! making #e&italift an alternati&e to plastic
surgery.
#e&italift collection should become J/irst in (ind
&ariant when it comes to decision making process.Komen should be informed that being more affordable
#e&italift collection is of as high +uality as more
e)pensi&e competing products.
Message oints6Reason
W*!
#e&italift collection consists of 13 products for different
types of skin which
repair deep-set wrinkles
ha&e double lifting effect
pre&ent new wrinkles
nourishe skin
Mandatories LGOrHal slogan ?ecause were worth itM
Media Outline Komen magaines
8-newsletters
OOC
ocial media
'irect mail
&iming eptember 4016 E ugust 401;
udget 24!000!000
&a#(e 1: Creative Brief.
ource: own work
. &actics
%he marketing strategy of the campaign will include both ac+uisition and retention
tactics aiming to gain new customers and keep e)isting ones. %he main message
which must be con&eyed throughout the campaign is that inno&ati&e #e&italift
collection may ser&e as an alternati&e to plastic surgery.
Media sed
irect Mail
'irect mail will be sent out using rented list! which will enable to communicate with
the right target group. It is e)pected to get 930 responses out of 19!400 mails sent.
> @ = a g e
-
8/9/2019 Dim Report l'Oreal
8/23
LOreal Skin Care Revitalift
Fewsletters informing about #e&italift promotions in different retailer stores and also
samples of products will be sent through mail system once in 4 weeks.
E!newsletter
,sing rented list for new customers newsletters will be e-mailed weekly. %hey will
inform about web-site updates! new articles and &ideos uploaded there and also gi&e a
couple of beauty ad&ices for women aged o&er ;7. %his campaign aims to get 10
responses out of 7!000 e-mails sent.
Out o" #ome
Outdoor media works effecti&ely due to the fact that a customer comes across the
same message fre+uently. In order to reach wider audience 1!700 #e&italift billboards
will be placed in London and other big cities of the ,"* (anchester! Leeds!
?irmingham! heffield and 8dinburg. %he campaign will last for one month.
5 @ = a g e
ic. 1:Direct Mail newsletter and sample of Revitalift cream
-
8/9/2019 Dim Report l'Oreal
9/23
LOreal Skin Care Revitalift
ic. : Outdoor advertisin
t the bottom of e&ery billboard LOreal web-site address will be gi&en in bold. %he
nearby message will in&ite customers to &isit the web-site and register there.
Maga$ines
ince press is the medium which enables &ery precise targeting! three magaines
which are most popular among women aged o&er ;7 belonging to ?! :1 and :4 social
classes ha&e been chosen for direct response ad&ertising campaign. %hese are monthly
glossy magaines Komen B Come! unday %ime tyle and ood Cousekeeping!
%atler.
#e&italift collection will be ad&ertised in these magaines. %he ,#L of LOreal
relaunched web-site will be placed in the noticeable place. ,nderneath there will be a
message in&iting customers to register on the web-site and
-
8/9/2019 Dim Report l'Oreal
10/23
LOreal Skin Care Revitalift
%hey reflect target audience lifestyle
Cigh co&erage among the target audience
Cigh circulation figures in the ,"
Cigh recognition among the fashion conscious consumers
ic. 3:Maa!ines
&it(e 7 8 2
Circu(ation
Readers*ip
9000;
Cost per page
9
-
8/9/2019 Dim Report l'Oreal
11/23
LOreal Skin Care Revitalift
indi&iduals
who ha&e
la&ish lifestyle.
&erage house
hold income*2144 >;3
Woman 8
ome137!7>7 ;36 46!900
:oncentrated
in the ?! :1!
:4 67-37
demographic
group
&*e unda!
&ime t!(e57!377 740 10!700
mart!
sophisticated
and intelligent
women?!:1!:4
image
conscious
women aged
;7.
&a#(e: "otal Readers#ips.
ource:Mediatel$ %&'%.
d&erts will be published in four issues of each magaine on the second step of the
campaign sending out the message and in four issues on the fourth step resending
the message.
Social Media
/acebook fun page will be created in order to announce special offers! new products!
and e&ents. dditionally! customers will also be able to share their photos!
information and gi&e ad&ises.
%e&site and Online S'op
It has been decided to re-launch LOreals website! as it has se&eral drawbacks* its
not informati&e enoughN the design is too simple and not attracti&eN colors of the
website are dark and gi&e negati&e impressionN lack of consumer engagement.
%he new website will be designed in bright! warm colors and will ha&e an easy-
understandable na&igation. It will ha&e new features such as ad&ices from e)perts!
different articles about health and beauty! consumer re&iews! price comparison. 8&ery
product will ha&e detailed description. %he website will be updated e&ery 4 days. %he
11 @ = a g e
-
8/9/2019 Dim Report l'Oreal
12/23
LOreal Skin Care Revitalift
most important change will be in di&iding it into different age categories enabling
customers to go straight to their age category and to choose products that suits their
age. dditionally! each category will ha&e articles and ad&ices about beauty. #e&italift
line will be in ;7 category section and will ha&e its own mini &ideos on how to
prolong the youth of the skin and li&e chats with LOreals e)perts where women in
real time could ask them their +uestions. %he only thing which will be necessary for
the customer to get an access to all these useful resources will be register on the web-
site which will enable LOreal to collect customer data.
In addition! there will be created an ecommerce platform on-line shop that will be
rolled into LOreals main website. ?y selling products directly without a retailor
store as a mediator LOreal will get an opportunity to establish closer relationship
with its customers.
#elaunched web-site and on-line shop will pro&ide the customer with e)pert ad&ices!
detailed information and useful &ideos which will help to win customers trust and
loyalty.
14 @ = a g e
ic. /: (e)*site pae
ource: own work
-
8/9/2019 Dim Report l'Oreal
13/23
-
8/9/2019 Dim Report l'Oreal
14/23
LOreal Skin Care Revitalift
fter the first message is sent we will measure the number of new customers.
tep ;* #esend the message to stimulate action
%he same means as on the second step will be used &ia direct mail! direct response
ad&ertising! e-newsletters for those who for some reason missed or ignored the first
message.
tep 7* (easurement
%he effecti&eness of this direct marketing programme will be measured by the number
of newly registered customers and the number of purchases made.
4. Acquisition ro!ramme Sc"e#ule
&a#(e 3:c+uisition =rogram chedule
ource:own work
5. Retention rogramme %(owc*art
Retention "#$ective
%o retain new customers
%o generate 23!456!000 re&enue
1; @ = a g e
-
8/9/2019 Dim Report l'Oreal
15/23
"etention
Cmpign 1:
Loylty Crd
%em+ership crd / L($rel with L($#e
Collecting 0oint
1 points get 1 pounds gift#oucher
1 points get speciltretment
Specil offer
"e#iteift 3e 0rty
Surprise gifts / *ree dili#ery
4et dou+le point whenpurchseing on your +irdy
Cmpign 2:
Customers updted$nline %edi
www'lorel'co'u)
*ce+oo)
LOreal Skin Care Revitalift
%igure: 5Retention proram and Campain -lowc#art
ource:own work
Campaign 1: ?o!a(t! c*eme
?y creating D uni+ue loyalty scheme! it will help to increase satisfaction le&el
of customers! as well as impro&e relationship with them. It can also help to get
&DluDbl insights into buPr bha&iQur and to collect customer data. LOreal
loyalty card! which will be called LOreal with LO&eM! will gi&e a sense of
pri&ilege to its members.
1. By becoming a member of LOreal with LOve, customers will
receive !lastic membershi! car"s with the starting amount of
1# !oints on both of them. $he member retains one an" has an
o!tion of giving secon" car" to % frien".4. Kith e&ery purchase customers will get certain number of points
1 !oun" & 1!oint' 1## !oints &1# !oun"s gift voucherto s!en" on the ne(t !urchase or 1#) "iscount of the
ne(t !urchase.*. $here will also be s!ecial gifts an" sur!rises for LOreal with
LOve members, such as gifts for +hristmas an" Mothers "ay.. -evitalift $ea arty
LOreal with LO&eM will create a special e&ent for the most loyal ;7
members. It will be an informal gathering in the format of tea party.
In this e&ent women can socialie! share their e)perience with LOreal!
17 @ = a g e
-
8/9/2019 Dim Report l'Oreal
16/23
LOreal Skin Care Revitalift
gi&e their opinion on products! telling what they want to get in the
future from LOreal! particularly in the category ;7.
7. nother great opportunity for members to recei&e an e)ceptional benefit is to
collect 1!000 points and to get a special treatment in one of LOreals salons in
London. It can be a makeup session! a blow dry! or a manicureApedicure.
3.
3.
3.
3.
3.
3.
3.
3.
3.
On their ?irthdays customers will get double points for their purchases.
ic. 5:"#e eample of t#e loyalty card of LOreal wit# LOve.
ource:own work
Campaign : Customer pdate
"eeping customers updated is &ery important.
Few products and special promotions will be announced through LOreal website and
/acebook. 8&ery registered customer will get link onto web-siteA/acebook update by
e-mail.
ic. @: "#e eample of online media: LOreal -ace)ook.
13 @ = a g e
-
8/9/2019 Dim Report l'Oreal
17/23
LOreal Skin Care Revitalift
ource:own work
$.
Retention
ro!ram
Sc"e#ule
&a#(e /:Retention Proramme /c#edule
ource: own work
1> @ = a g e
-
8/9/2019 Dim Report l'Oreal
18/23
LOreal Skin Care Revitalift
%. &easurement
Res'onse Rate(Conversion Rate) &easure t"e Results
&!pe o' Media Aum#er
o'
contacts
Response
Rate 9);
Conversion
Rate
Cost per
eac* media
c*anne( 9!350 40
"ut o' *ome
?illboards 16!;63 7 1 in 3 4!35> 40
MagaBines
Koman and Come 7!940 6 1 in ; 1!9>6 40
unday %imestyle
1>!>00 6 1 in ; 7!900 40
ood
Cousekeeping
5!745 6 1 in ; 4!5;6 40
%atler 4>!350 6 1 in ; 9!44> 40
Direct Mai( 19!400 7 1 in 3 6!5;0 40
-Aews(etter 7!000 0.4 1 in 3 47!000 40
Compan! We#site 7!000 0.4 1 in 3 47!000 40
&"&? 150,000 31/,150
&a#(e 5: /#ows t#e results of response rate and conversion rates for t#e campain.
ource:own work
"ut o' ome
Outdoor campaign billboards will be measured by eyes on Impression system
8OIs! where results will be gained from different types of data! i.e. sur&ey! blogs!
data analytics and customer re&iews.
15 @ = a g e
-
8/9/2019 Dim Report l'Oreal
19/23
LOreal Skin Care Revitalift
-news(etters
%o measure response rate in this campaign there will be de&eloped ; different types
of mails that will be sent to trial group of customers - 300 people in 7 big cities across
the ," London! (anchester! ?irmingham! Leeds! 8dinburg. %he type of e-mail that
will recei&e higher response and con&ersion rates will be sent to the rest of the target
audience.
rint dvertising
%he response rate to the campaign will be measured by inserting &oucherAflyer with
bar codeAreference number on each of them. Cence! if a customer wants to get a
discount when buying a #e&italift product she will need to register this number
online. %hat is how the e)act number of customers will be measured.
ocia( Media6 "n(ine
ocial media will be tracked by the number of fans! likes! comments.
/acebook* number of likes of the LOreal #e&italift page.
/ebsite0 number of visitors, comments in the blog an"
customers fee"bacs.
*. Evaluation8&aluation process will be in the end of the campaign. %he final campaign results will
be e&aluated and compared with initial ob
-
8/9/2019 Dim Report l'Oreal
20/23
LOreal Skin Care Revitalift
+. ,u#!ets - bottom line forecast results
Direct
Marketing
&oo(s
Description iBe %re>uenc! rice
9
-
8/9/2019 Dim Report l'Oreal
21/23
LOreal Skin Care Revitalift
Estimate# rot an# RO/
ccording to the estimations of the e)penditure and re&enue of the campaign!
27!935!570 of profit will be generated.
#elying on all these calculations the campaigns return on in&estment has been
estimated. It shows how much the company will get in return for the in&estment it
made. It will allow the company to decide whether it worth to in&est in the campaign
or not.
%he #OI from the direct marketing campaign for LOreal #e&italift will be 1*7.6.
41 @ = a g e
-
8/9/2019 Dim Report l'Oreal
22/23
LOreal Skin Care Revitalift
Conclusion
%he &alue of the ," beauty industry is o&er 217bn. ,nlike many other industries it
was not hea&ily affected by the economic crisis because of womens obsessionM with
keeping their beauty.
#e&italift is a new skin care collection for women aged o&er ;7. Fow it is on the
introductory stage of its life cycle! therefore it needs to be widely promoted. In order
to get higher results and implement more precise targeting a number of direct
marketing techni+ues must be employed.
/or customer ac+uisition direct mail! e-newsletters! direct response ad&ertising and e-
commerce will be used. %hese tools will enable to attract new customers. /or the
purpose of retaining customers loyalty scheme! which will ha&e se&eral le&els! will be
worked out. (embers of the LOreal with LO&eM loyalty scheme will not only get
different pries and discounts but will also get an opportunity to participate in LOreal
special e&ents for those who use #e&italift.
%his direct marketing campaign is estimated to generate 23!456!000 of re&enue which
makes it a good in&estment for LOreal.
i#(iograp*!
'irectional (edia! 4016.Rate Card * Bill)oards. SOnlineT &ailable from*
Uhttp*AAdirectionalmedia.co.ukAproductsArate-cardV Sccessed on 17 (arch! 4016T.
Cearst (againes! ,"! 4016. 0ood 1ousekeepin 2 Rate Card. SOnlineT &ailable
from* Uhttp*AAwww.hearst.co.ukA011-136-(againe-#ate-:ard.htmlV Sccessed on 14
(arch! 4016T.
LOreal! 4016. kin :are #e&italift. SOnlineT &ailable from* Uhttp*AAwww.loreal-
paris.co.ukAskin-careAre&italift.asp)V Sccessed on 17 /ebruary! 4016T.
44 @ = a g e
-
8/9/2019 Dim Report l'Oreal
23/23
LOreal Skin Care Revitalift
(intel! 4016.Direct Mail Response Rate. SOnlineT &ailable from*
Uhttp*AAmediatel.co.ukAdirect-mailAreportAresponse-ratesAV Sccessed on 15 (arch
4016T.
(intel! 4016.Press. SOnlineT &ailable from* Uhttp*AAmediatel.co.ukApressAV
Sccessed on 15 (arch 4016T
(intel! 4016. Online. SOnlineT &ailable from* Uhttp*AAmediatel.co.ukAonlineAV
Sccessed 15 (arch 4016T
(intel! 4014. Out of #ome. SOnlineT &ailable from*
Uhttp*AAmediatel.co.ukAoutdoorAV Sccessed on 15 (arch 4016T
=lasticcardsdirect! 4014.Loyalty Cards and Reward cards. SOnlineT &ailable from*
U http*AAwww.plastic-cards-direct.comAukAmembership-library-cards.php V Sccessed
on 15 (arch 4016T
%atler! 4016. "atler Rate Card. SOnlineT &ailable from*
Uhttp*AAcnda.condenast.co.ukAstaticAcondenastA%atler-(ediapack-4016.pdfV Sccessed
on 1; (arch 4016T
%he unday %imes! 4016. "#e /unday "imes$ /"3L4 2 Rate Card. SOnlineT
&ailable from* Uhttp*AAnicommercial.co.ukAassetsApdfsAtimesdisplayratecard.pdfV
Sccessed on 1; (arch 4016T
," Fational tatistics! 4016. tatistics =roducers. =opulation. SOnlineT &ailable
from* Uhttp*AAwww.statistics.go&.ukAhubApopulationAageingAolder-peopleAinde).htmlV
Sccessed on 19 /ebruary 4016T
KomanBCome! 4016. (oman51ome 2 Rate Card. SOnlineT &ailable from*
Uhttp*AAspecle.netAukAipc-mediaAwoman-homeV V Sccessed on 1> (arch 4016T
46 @ = a g e