l'oréal brandstorm 2015 presentation
TRANSCRIPT
Travel Retail The Lancômmers
Aidana aitzhanova | Arthur Bellanger | Christina Chen Nov 25, 2014
AGENDA Current market situation Travel retail market situation Current trend Consumers Future trend Competition SWOT Recommendations
L’Oreal is the leader 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
Market Situation: Travel Retail�
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
Global shopper \glō-bəl shä-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
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
2. BROWSE
1. GIFT
3. PRICES
Why do they go to duty free?
MARKET ENVIRONMENT SWOT RECOMMENDATIONS
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
COMPETITION �Luxury Mass
MARKET ENVIRONMENT SWOT RECOMMENDATIONS
POSITIONING �Price
Perceived Luxury
MARKET ENVIRONMENT SWOT RECOMMENDATIONS
S STRENGTHS
W WEAKNESSES
O OPPORTUNITIES
T THREATS
MARKET ENVIRONMENT SWOT RECOMMENDATIONS
STRENGTHS
W WEAKNESSES
O OPPORTUNITIES
T THREATS
Access to L’Oreal resources Brand image Digital marketing leader Existing distribution channels Natural Ingredients/Sustainability
MARKET ENVIRONMENT SWOT RECOMMENDATIONS
S STRENGTHS
WEAKNESSES
O OPPORTUNITIES
T THREATS
The brand may be perceived for an older demographics No diversification in shopping experience at POS Heavily dependent on 3rd party retailers
MARKET ENVIRONMENT SWOT RECOMMENDATIONS
S STRENGTHS
W WEAKNESSES
OPPORTUNITIES
T THREATS
Impulsive purchase Increasing trend for gift shopping at airports Increasingly large middle class Technological savvy global Shoppers Long waiting time for flight
MARKET ENVIRONMENT SWOT RECOMMENDATIONS
S STRENGTHS
W WEAKNESSES
O OPPORTUNITIES
THREATS
Fierce competitors Counterfeits goods Information overload Overwhelming environment Low switching costs Low loyalty
MARKET ENVIRONMENT SWOT RECOMMENDATIONS
IN-AIRPORT RETAIL PLAN �3 alternatives
Improving existing in-store experience
Redesign store concept & offerings
Special & unique new experience
MARKET ENVIRONMENT SWOT RECOMMENDATIONS
#1 Offer Hand + Face massage
Turned out successful in Beijing 40% of all massages resulted in sale
Increase product awareness Minimal cost
MARKET ENVIRONMENT SWOT RECOMMENDATIONS
MARKET ENVIRONMENT SWOT RECOMMENDATIONS
#2 New store design Inspired from 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
#3 Stand-alone store: unlabeled polished black 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
ON-BOARD PLAN �3 Suggestions
First class & Business Economy
On-board duty free
MARKET ENVIRONMENT SWOT RECOMMENDATIONS
#1 Sample package on the 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
Lottery to win travel-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
#3 On-Board duty free
Replicate the 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
Separate consumers from the 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�
Travel Retail The Lancômmers