l'oréal brandstorm 2017 - soins de beauté - mdi, gurgaon
TRANSCRIPT
Soins de Beauté
AYANDASGUPTA
DIVYAGUPTA
Microphones on Comb-teethCapture the hair’s soundwaves
to identify FRIZZINESS, DRYNESS
GyroscopeAnalyzes combingforce and speed Accelerometer
Counts strokes
Haptic FeedbackVibrating handle
guides combing technique
PROPOSED PRODUCTCONCEPT PROTOTYPE
PRES
ENT
Comb length ControllerRotate to select the
length of comb-teeth
SIDDHARTHMISHRA BEARD STYLER
SKIN CLEANSER
BEARD VOLUMIZERFOREST MINTFRAGRANCE
BEARD GLOSSSKIN FRESHENER
RollerTo apply the formula
on the beard and skinNOTEPlease view the PPTX in Presentation Mode to view embedded GIFs and VideoPlease refer to the slide notes for a detailed explanation of our proposed solution
Cricket Players20
1220
17
Actors Footballers
Entrepreneurs
Virat Kohli MS Dhoni Yuvraj Singh R. Jadeja Rohit Sharma
2017
2012
RyanGosling
RanveerSingh
LionelMessi
20172014
20172014
JackDorsey
There’s no denying that BEARD REVOLUTION is the IN THING
EXECUTIVE SUMMARYObjective: Disrupt Men’s Grooming by designing a new product line forL'Oréal Paris Men ExpertType of Solution: UNIVERSAL (Global brand with local knowledge), DIGITAL (Internet of Things), SUSTAINABLE (Water-free, Recycled packaging, Anti-deforestation campaign) ensuring BEAUTY FOR ALLProduct Line Designed: Beard CareCategories: Styling, Skincare, Deodorant/FragranceApproach: Gap Analyses Strategy: Blue Ocean Strategy (to capture theremaining 87% of market) Research Methodology: Primary (Interviews and Questionnaire), Secondary (Industry Reports, Annual Report, Resource Pack)Base Market for Primary Research: India (with high scope of scaling up)
Soins de Beauté
Market Analysis
Men’s Grooming market currently at Euro18.2 bn (2016), to grow to Euro 23.2 bn by 2020 (CAGR: 6.3%)
202020192018201720162015
23.221.8
20.519.3
18.217.1
Billion Euros
Global Trends
Out InSpornosexual
Lumbersexual
GrowthMen’s Toiletries includingbeard care: 6% (USD 3.6 bn)Men’s Shaving: 1.6% (USD 3 bn)Start-ups related to beardgrooming: 8 (2011), 42 (2014),58 (2015), 81 (2016)
Growth Markets
Key Findings 50% men want natural ingredient products42% want water-free and non-rinse products71% prefer ergonomic applicantsChief ingredients: Vitamins, minerals and antioxidants
Asia-Pacific: India, Pakistan, Thailand
L'Oréal aims to reduce carbon footprint by 60% by 2020
Eastern Europe: Russia, Turkey, UkraineWestern Europe: UK, GermanyLatin America: Argentina, Venezuela
Saudi Arabia: 20+%Egypt: 20+%Pakistan: 20+%India: 10+%Thailand: 10+%Russia: 10+%Turkey: 10+%Ukraine: 10+%Argentina: 10+%
Overall Cosmetics Market
L'Oréal Cosmetics Division
56% 40%Sales from New Markets
Sales from New Markets
Overall Men’s Grooming Market
L'Oréal Men Expert
33% 28%Sales from Skincare and Haircare
Sales from Skincare and Haircare
Competition Analysis
Men spend 24% more on beard grooming than last year68% men prefer multifunctional/cross-category products
L'Oréal Paris Men Expert Portfolio Analysis
Current Portfolio
SKINCAREHAIRCARE
SHOWER GELSDEODORANTSSTYLING
Gap found in L'Oréal Men Expert Portfolio: Beard CareL'Oréal Paris Men Expert - Major Franchises
Possible Gap in Product Ranges:Water-free, non-rinse products
Proposed Product Line for L'Oréal Men Expert
Ergonomically advanced applicants
50% of cosmetics sales will come from tropical countries by 2030Internet of Things (IOT) will impact cosmetics
Source: EUROMONITOR
Source: EUROMONITOR, DATAMONITORSource: L’OREAL 2015 ANNUAL REPORTand BRANDSTORM 2017 RESOURCE PACK
Focus on new markets
and facecare products
Environment AnalysisMen Expert - SWOT
New MarketsAsia-Pacific, Eastern Europe, Middle East and Africa, Latin America
Strength Weakness
Accessibility Simplicity
Less Aspirational
Distribution Limited Packaging
Advertising Not too masculine
Affordable Unisexual
Celebrity endorsed
Non eco-friendly
Male CentricLess
Sophisticated
High Quality Availability
Strengths Weaknesses
Opportunity Threats
Strong R&DDiverse product rangeBrand Awareness
Dependence onthird party retailUnderutilizationof face-care andgrowth markets
New marketsNew consumer trendsInnovative channels
Competitionfrom naturalproductsCustomer bar-gaining power
Water ScarcityBy 2030, water availabilitywill be just 60%By 2050, water demand will increase by 55%
Mid-East and Africa: Saudi Arabia, Egypt
Formula: Vitamin E, Beeswax, Petroleum Jelly,Fractionated Coconut Oil, Grapeseed Oil, Avocado Oil
Ergonomy: Handheld roller with flexi ball, screw drivenadjustment of comb-tooth lengthInnovation: IoT enabled comb-teeth which sense beardand skin conditions to recommend products on the appContribution to Sustainability: Water-free, rinse freeapplication, ethical recycled packaging involving nofossil fuel, manufactured using renewable energyCategories: Styling and Beard care (Primary), Skincare(Secondary), Deodorant/Fragrance (Tertiary)Product Benefits: Softens beard for styling, cleanses pores, anti-itchiness, emits mild but lasting fragranceDirection of Usage: Apply the roller against the beardcovered face, rotate the com-screw and gently run thecomb along your beard hair
Price: Euro 50 for 50 ml
7
1 2 3 8
765
9
4
MORE SOPHISTICATED
LESS SOPHISTICATED
EXPE
NSIV
E
AFFO
RDAB
LE
Perceptual Map
Deforestation1.5 acres of forest cut down every secondCauses 17% of annual global greenhouse gas emissions
SHAVING
Bear
d ca
re is
gro
wing
fa
ster
than
shav
ing
Countries in which L'Oréal has grown in 2015
Source: L’OREAL 2015 ANNUAL REPORTand BRANDSTORM 2017 RESOURCE PACK
18-25#RealMenGrow
What Men L'OréallyWant in Beard Care
Even rate of beard growth (56%), Getting the right style of beard (72%), Oil-Water balance inbeard (49%), Uniform facial hair (71%), Cleansing skin under beard (68%), Good beard smell (45%)
Soins de Beauté
Millennial Trends
PersonalizationPrice is key
Highrequirements
Demandingquality
SocialTech SavvyAmbitious
Millennial Profiles
Rohit Arora, Corporate Aspirant, IndiaI need a product that helps me style my beard such that it looks presentable at my workplace
L'Oréal Men Expert Channels
Channel Strategies
Digital Strategies
Advertisement and Promotion
Mobile Application
Timeline and Financials
Social Media and Internet Mobile AppPOS Innovation
Social Media and Internet
1.2 billionBeard Styling Views
2.1 million Average number of channel subscribers for top 15 YouTube beauty vloggers
3%
HUGE OPPORTUNITY FOR MAJOR BRANDS LIKE L’OREAL
STREAMING and VLOGSof grooming tutorials by famous YouTube grooming artists
WebsitesDevelop dedicated
country-specificmicrosites
Instead of: lorealparis.co.in/men-skincareSuggested: menexpert.lorealparis.co.in
Better SEO, SEM More information on products Help chat-bots on website E-commerce on website
Blogs
POS InnovationPut IoT enabled mask on the face and receive
skincare, beard care advice in retail outlets
Make posts that are not increasingly advertorialbut more relatable and inspirationalRely on influencers along with celebritiesRun social campaigns to unify the millennialcommunity #REALMENGROW
LEVERAGE VIDEO to post short grooming and health tips
31.8k followers | SM platform to BUILD RELATIONSHIPS
ADSof products on related videos in a storytelling manner that captures the attention of the viewer
Embedding e-commerce links on posts, Facebook StoreConduct contests where members will choose a muse
Sponsored lenses to add beardLinks of products during eventsChat services that provide customersdirect access to L'Oréal experts while shopping
521k likes | SM platform to PROMOTE BRAND
Suggestion: Diversify by focusing on EMOTION in addition to ads explaining product features.Be a GLOBAL BRAND with LOCAL CONNECTRecruit INFLUENCERS who are YOUNG ACHIEVERS as brand ambassadors based on regional influence such as
India Pakistan Turkey Russia Argentina
Virat Kohli
Fawad Khan
Burak Ozcivit
Danila Kozlovsky
Lionel Messi
Feature influencers in
powerful adverts such as
the one by Gerard Butler
Click to Play
Print ads to be primarily on LIFESTYLE MAGAZINES such as GQ, Esquire, Hombre and also on digital men’s lifestyle magazines like Primer, MenXP, AskMenSponsor sports award
shows in addition to films award shows (Golden
Globe) like Ballon D’or and global-local reality shows
like The Voice
1. Mass Retail2. Drugstores3. Cosmetic Stores4. Travel Retail5. E-Commerce6. Salons (Our new channel suggestion)
1 2 3
654
10 11 15 16
17
14
13
12
E-CommerceExclusive partnerships with national leaders like Flipkart (India), Alibaba (China), Ozon (Russia), Alshop (Middle East), Taretelo(Latin America) – allows higher margins3D Printing: Allowing instantaneous, logisticindependent e-commerce
Travel Retail – The Eighth ContinentPre-flight Experience: Airport bannersRedesign Stores - Dark theme like that of Men Expert at major airports – Mumbai, Doha, Beijing, Paris, Buenos AiresInflight Experience: Business Class - On board travel samples and advertisement in inflight magazinesEconomy – Lottery to win travel kitPost-flight Offering: Delivery at the gate of the destination airport or hotel of boardingAlso target cruises in the Gulf region
Smart RetailOmnichannel: Implement Click and CollectWeb in Store: Real time update of stock in a store with product ratings and reviews,faster check-n using wearables,Store locator and In-store navigatorValue added Service: Shazam enabled video adverts to promote loyalty programs
Cadoc Mido, Party Goer, EgyptI want to look more rugged yet sophisticated with more volume of beardJose Sainz, Beach Volleyball Player, ArgentinaI need a product that maintains the oil-water balance of my beard while I play.
Target: 33% of media spendingCurrently 25% - ANNUAL REPORT
Concerns to focus onAccuracy: Makeup Genius suffers from lack of accuracyDevice Compatibility: Makeup Genius incompatible with some Android devices – led to poor rating of 2.9 on Play Store
Theme: Integration ofexisting L'Oréal apps with innovative additions
iBeacon ReceiverFor offering abetter instore
experience
IoTFeedback readings from sensors of thecomb-teeth withrecommendationE-commerceAllows user toorder productsfrom the appKaleidoscopeDetects fashionthrough cameraand providesinformation tothe user
Trend UpdatesLatest blogs on
fashion andgrooming but
with more usercollaboration
Styling AppScans the user’s
face to apply hairand beard style
suggestions. Alsooffers clothing and
accessory tips
Current Ads: TOO PRODUCT FEATURE CENTRIC
Suggested Ad Concept (30 seconds)Clean shaven boys felling trees Bearded and groomed young men arrive and grow trees cameratakes aerial view of beard shaped forest cover#REALMENGROW The ad addresses environmentconcerns while depicting maturity of men over boys
of YouTube beauty viewsbelonging to major brands
Drugstores, Cosmetic Stores and SalonsValue added services like personal care tips, cosmetic consultancy, massages.
16.5k followers
11k subscribers
Snapchat
Y0
Y1
Y2
Y3
Y4
Y5
Launch productline in growth markets
Provide valueadded services indeveloped markets
Launch productline in marketswith sub 10%growth
Introducenewer productsas per specificmarket needs
Pilot futuristictechnology like 3Dprinting of products
Recruit newinfluencers.Recreate adstrategy
Revenue (Year 1)
Operating Profit
EPS Contribution
ROI (Year 1)Euro 122 mn
20.76%Euro 0.045
Refer to the embeddedspreadsheet for details
26.19%
Product Financials
Annexure