l'oréal brandstorm 2015 - lancome travel retail - national final italy

L’Oréal Brandstorm 2015 – National Final Italy

L‘Oréal Brandstorm 2015

Travel Retail

April 14th, 2015

PATRICK BARTL | SYLWIA KURKOWSKA


L‘Oréal Brandstorm 2015 – The Challenge

Put yourself in the shoes of

an international marketing

director for Travel Retail

and imagine a new retail

experience for the brand

LANCÔME to attract new

customers!


What is travel retail?

Travel retail is the business undertaken in all the shops located in duty free areas

or any areas dedicated to travelers. With 30% of total sales, beauty - fragrances and

cosmetics - are the best-selling products in this channel.

Travel retail consumers are global shoppers who buy not only where they live but

also whilst travelling. It is key to offer them a personalized approach with tailored

experiences, beauty consultants who speak their language, targeted product choices

and even point-of-sale events celebrating their holidays or important events.

1.087 billion people travelled internationally in 2013, equivalent to approximately

15% of the global population. These tourists contributed an estimated $1,159

billion to various local economies, purchasing accommodation, food and drink,

local transport, entertainment and shopping in destination countries.

Source: L‘Oréal, UNWTO


Agenda

1) Highlights of the Market Analysis

2) LANCÔME Digital Marketing Strategy Proposal

3) LANCÔME Retail Experience Proposal

4) Executive Summary


HIGHLIGHTS

Market Analysis


Offers Experiences Personalization

Reco

mm

en

dati

on

s

Promotions CustomizationDiscounts

X-SellsLoyalty benefits

Co

mm

un

ity

Advocacy rewards

Em

ail

Cam

paig

ns

SE

MS

EO

Microsites

AWARENESS

CONVERSION

RE

TE

NT

ION

/ L

OY

AL

TY

CO

NS

IDE

RA

TIO

N

Customer-centricity is the key to success when deciding on

channels and marketing activities throughout the loyalty loop

Mobile

Phone

Website

P.O.S.

In store

appliance

Radio

TVPrint

At home

At work

At an

event

At a

destination

In a store

In transit

Source: IDC Retail Insights 2015

Know the customer…

…at any time or place…

…on any device or

channel…

…to know what to do

next…

…across the full

consumer lifecycle.


Therefore, we introduce a persona: Linda Voyage

32

yearsFrench /

Brazilian

Engaged

No

children

(yet) Owns a

lifestyle

business

Fashion Traveling

Hobbies

Women

with heart

and mind

Confident

Takes

care of

herself

Social

Buyer


Linda is a good example for LANCÔME‘s target group

Men

Mature

Women

With

time

Without

time

Airports

57%

Airlines

6%

Downtown

Duty Free

33%

Cruises

4%

>$1.5b annual

spending

Premium price

Medium price

Low price

Global

Market

"I want to buy a

gift, pass the

time and treat

myself.">6b flights

in 2013

4% annual

growth

~30% travel retail sales in beauty segment

Source: UN World Tourism Organization


The travel retail market is expected to double by 2020

0

20

40

60

80

100

120

1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020

2013

~2x

Source: Generation

Billion $ US


A global business requires dealing with different cultures.

Let us compare consumers from France and the U.S.

Contextual Background

P-Time vs.M-Time

Hofstede’s National Culture Ethno-centricity

Low-Context

High-Context

Monochronic

Polychronic

Collective

Individual

U.S.France

Individualism/Collectivism

Low

High

PowerDistance

Feminine

Masculine

Masculinity/Femininity

Low

High

Uncertainty Avoidance

Short-term

Long-term

Long Term Orientation

Low

High


Current market trends require a big shift

Democratization of Traveling

Emerging middle class in the New Markets

FROM A PRODUCT-DRIVEN TO AN

EXPERIENCE-DRIVEN LUXURY

Personalization

"Tailor made experience"

Recommendation

"Social Buying"

Glocalization

Customized service by nationality

Digitalization

Internet of Things (IoT) and Gamification


LANCÔME needs to leverage market opportunitiesIn

tern

al F

act

ors

Exte

rnal

Fact

ors

Strong branding

Market leadership

High quality

R&D

Innovation

Inflexible brand

image

Lack of natural /

organic products

Emerging

middle class

Increased on-

board sales

E-Commerce

Strong competition

Airports are at or

near maximum

capacity

S W

O T


LANCÔME – Mission

LANCÔME is THE brand of women. Today more than ever, ultra-femininity,

emotion, joie-de-vivre, happiness and beauty are at the very heart of LANCÔME’s

DNA. A spirit that asserts itself through the most beautiful, the most optimistic

mission:

That all women who come to

Lancôme to be more beautiful,

always leave happier.


In terms of the travel retail market, we translate this into…

Make traveling

more enjoyable

and less stressful,

for a perfect

beauty on-the-go.


Digital Marketing

Strategy Proposal


Digitalization is a fantastic opportunity for beauty

Source: Google Inside 2014, Facebook Audience Jan 2015, e-Marketer 2014

L’ORÉAL wants to be the leader of “digital beauty”

4.5b

59.2b

160m

Beauty queriesper year on Google

views on Beauty per year on YouTube

addressable beauty addictson Facebook

15.7% of media spending on Digital

LANCÔME average basket is 95€


We propose to create Shazam-enabled video adverts

to position LANCÔME as the leading travel retail brand

Linda just returned from a business trip and is

watching TV. She discovers the new LANCÔME

Shazam-enabled advert and activates the Shazam

app on her smartphone to get more information.


The Shazam-enabled video adverts link different channels

and promote the LANCÔME Elite Rewards loyalty program

Shazam recognizes the music in the new

LANCÔME advert and shows Linda a link

to the LANCÔME Elite Rewards loyalty

program. Linda can now download the app.

LANCÔME rolled out its Elite Rewards

loyalty program on April 1, 2014 in the U.S.

The monthly traffic increased by 60%.

Source: L‘Oréal


We propose to roll out the LANCÔME Elite Rewards

Program globally and enhance it with the following features

Mobile App

Travel Maps

Leaderboards

(1) Overall (2) Friends

Social Buying

(Wish List)

Geolocation with

iBeacon


Sharing content of LANCÔME on social networks

will be rewarded with loyalty points

Source: Self-adapted advertisement from Munich Airport, Music: Tresor


At the airport, LANCÔME has the chance to convert

Linda and retain her for the future

The loyalty program helps

LANCÔME to build

awareness and lets Linda

consider buying the

products that make

traveling more enjoyable

and less stressful.


LANCÔME banners could be placed at strategic

locations at the airport to promote the loyalty program

The usage of gamification

techniques is recommended

to address the core drives

for consumer motivation


After the security check, Linda receives a push notification

from the LANCÔME app triggered by iBeacons in the store


She is curious to explore her special offer and is lead

to the LANCÔME store nearby through the app


iBeacons are supported by iOS

devices with Bluetooth 4.0,

Android 4.3+ devices as well as

Windows Phones with the

Lumia Cyan update or above.

The technology enables smartphones or other devices to

perform actions when in close proximity to an iBeacon

Source: http://techblog.rga.com/ibeacon-primer-part-ii-ibeacon-vs-geofencing/

iBeacons emit just three identifying pieces of

information in their Bluetooth Low Energy

(BTLE) payload, a universally unique

identifier, a major value, and a minor value.

This helps to identify e.g. the store, the floor

within the store, and the position on that floor.

The store can then serve unique content to the

user based on their actual position, for

instance a special offer on the Lancôme

perfume the customer is standing in front of.


Retail Experience

Proposal


Digitally enabled touch points

throughout the shopping journey

Thanks to iBeacons, the beauty advisor receives Linda‘s

special promotions and history before she enters the store


When Linda enters the store, she

notices a purple carpet leading to

the LANCÔME MAGIC

SCREEN that displays what is

happening at that moment in

other LANCÔME airport stores

worldwide. Language barriers can

be eliminated by connecting to the

right store in the world.

The LANCÔME MAGIC SCREEN connects

two stores and creates a unique customer experience


Products with a QR code

can be placed on the table

and trigger the display of

further information

The Multitouch LANCÔME Experience Table & Digital

Mirror inform about products and apply them virtually


Linda creates a digital postcard to share her new look.

She receives immediate feedback from friends and family

It’s wonderful, I fully

trust my family and

friends and love to

share my new look!


Executive Summary


Enhanced global LANCÔME Elite Rewards programMobile app, iBeacon, Travel maps, Leaderboards

Executive Summary: Omni-channel Strategy

Make Traveling More Enjoyable and Less Stressful

Awareness Consideration Conversion Retention

Shazam-enabled video advert

Google SEM

Social Buying "Greetings from LANCÔME"

Your picture on a plane (Elite rewards)

Personalized product packaging (gifting)

Airport Banners

Email campaign / Newsletters

Magic Screen, Multi-touch LANCÔME Experience table

Customer history when entering the shop

Travel samples on board for the first & business class

On board advertisement in magazines

Camouflage Airport Events

Delivery at the gate of destionation airport

Digital Channels Classical Channels

Facebook Ads

Ready-to-go travel sets


Patrick BartlManaging Consultant

M.Sc. in International Management

Email: [email protected]: www.linkedin.com/in/patrickbartl

Contact

Sylwia KurkowskaGraduate Student

M.Sc. in International Management

Email: [email protected]: www.linkedin.com/in/sylwiakurkowska

l'oréal brandstorm 2015 - lancome travel retail - national final italy

Marketing

national final italy

national final italy

travel retail market

travel retail sales

travel retail consumers

new retail experience

idc retail insights

beauty segment source