Lancôme Marketing Plan Essay
I. Executive summary: Lancôme is preparing to launch a brand new anti-aging cream concluding an ideal result of ten years exploring in lab and become recommended since “A miracle elixir exists”, the Intacte L’Extrait, in Vietnam beauty market.
The product presents a competitively unique combination of the latest modern technology in skin stem skin cells and superb beauty results after tests and starting in other countries. Our company is targeting particular segments in the consumer and taking benefits of opportunities indicated by the large demand for natural beauty in such a energetic economic. The primary marketing goal is to accomplish first-year Vietnam sales of 10, 1000 units.
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The main financial objectives are to obtain first-year product sales revenues of $3. your five million and break even early in the second year. 2. Current market circumstance: Lancôme is usually founded in 1935 by simply Armand Petitjean in France. From the beginning until now, Lancôme has brought natural beauty for women in 160 countries worldwide through 28. 500 retailers and stores all over the world.
After attaining a large amount of marketplace shares in European marketplace and become a market leader, Lancôme turns the target into Asia, and Vietnam in exceptional. Penetrating in Vietnam 5 years ago through the simply retailer channel- Parkson, Lancôme has gained a certain amount of market share and provides occupied a powerful position in the eye of the upper- class. However , we also have to compete with a lot of strong brand names in beauty about prices and attaining customer’s dedication such as Clinique which is the pioneer in dermatologist-developed beauty brand.
Discovering that most of Vietnamese women (about 75%) care far more about skin care than cosmetic, the newest merchandise which is in the expansion with the premium TOTALE line – Lancôme’s Complete L’extrait, will probably be about to launch into Vietnam market and possess a very good advantage to differentiate from other competitors. 1 . Market information: Method: Concentrated marketing 2 . Product Assessment: Absolue L’extrait is the latest anti-aging cream of Lancôme as well as the first product to feature a substantial concentration of your kind of native cells-rose come cell. Increased stem skin cells is said to be removed from the Lancôme Rose- a species particularly created for Lancôme in 1973 and resisting various environmental aggressions (cold, insects…).
It truly is claimed to be capable of “stimulating human dermal originate cells”. Each 50 milliliters jar of formula is definitely claimed to contain “2 million rose stem cells”. Apart from the flower stem cells, the formula will also consist of Proxylane, a proprietary anti-aging active ingredient of L’Oréal. The jar is sold with a massage therapy tool – the “massage petal applicator” – designed with the Lancôme Institute.
It is claimed to alternate popular and cold effects pertaining to stimulating the skin to stimulate it, initiating microcirculation and promoting a much better penetration with the formula’s ingredients. As a global anti-aging method, it is believed to have a significant efficiency around the “seven key signs of aging” said simply by Lancôme to be: – Your forehead wrinkles The formula continues to be tested upon 42 females, half of these people having sensitive skin. Outcome was observed following 11 weeks.
This is quite unusual, as most of skincare products will be tested on the 4 week basis. This is a strategy to obtain better results to claim – the much longer you use a product, the better are the effects. Since its creation, Absolue provides always extended the limits of science and creativity to incarnate a quintessential and aristocratic beauty; one that abounds with grace, elegance and elegance. More than luxury, this can be an inspiring idea for the most requiring women on the globe. 3. Competitive Review: Recently, because Vietnam’s economic contains a great creation and living standard can be gradually elevating, the has to be beauty and health caring are growing rapidly.
As a result of working pressure and environment pollution, women nowadays have wrinkle quicker and quicker. With these types of reasons, the anti-aging cosmetic market is genuinely potential. Key competitors range from the following: 2. Cle Para Peau: A Japanese brand which has been only set up for the last 30 years. + Merchandise: having know-how about the Neuro Skin Theory: “Skin includes a brain of its own” and the breakthrough of the leukemia network of the skin, it might be said that Cle De Epiderme anti-aging goods are the best and best-seller anti-aging item in Vietnam at the moment.
2. Estée Lauder: This America brand came into Vietnam only for 7 years (since summer 2005) but it already has a stable position inside the cosmetic industry with a practical distribution funnel (2 stores in Hanoi and other four in Ho Chi Minh City). 2. Clinique: A brandname developed by dermatologists of Estée Lauder Business but in contrast to Estée Lauder, Clinique already appeared in Vietnam coming from 2001 and having a greater distribution funnel (9 recognized stores in the 3 biggest cities of Vietnam: Hanoi, Haiphong, Ho Chi Minh City) & Product: Clinique products can be suitable for every skin’s kind using its natural roots cosmetics. 5. Kanebo: Officially appeared in Vietnam in 2003 through Exclusive Marketers – Transact Co., Ltd.
L & K. This Japanese brand currently has on the lookout for official showrooms in Vietnam (2 in Hanoi, one particular in Haiphong and other three or more in Ho Chi Minh City). & Product: In respect to Kanebo theory with the structure of skin, the “Adhesive Technology” is the way to have an superiority skin. 5. “Hang xach tay”: Not much of a specific company, “Hang xach tay” can be described as new trend in commodity trading in Vietnam currently. “Hang xach tay” functions base around the products which usually flight family and friends or fliers or even shop owners’ acquaintances brought back following each time that they went in another country. + Product: Diversified brandnames, products, origins and quality.
In Hanoi, “Hang xach tay” contains a venue on the “Aviation Street” (Nguy? in S? d St . ) Despite this strong competition, Lancôme can carve out a definite picture and gain recognition among the list of targeted portions. Lancôme’s Absolue L’Extrait is known as as a marvelous product which can be produced by the most advanced and unique technology on the globe nowadays. This can be a breakthrough after 10 years searching and developing from Lancôme, a popular reputation brand. Thus, Lancôme’s Absolue L’Extrait will have a total competitive benefit among additional products.
One of the most potential rival of Lancôme’s Absolue L’Extrait in Thai anti-aging marketplace is Cle Sobre Peau. However , Cle Para Peau’s La Cream U still has several weak aspect such as is it doesn’t most expensive cosmetic product in Vietnam market. Moreover, unlike Lancôme’s Intacte L’Extrait, also you have already used La Cream U for night time care, you still need other lotion for day care to get the best result.
In a nutshell, Lancôme’s Complete L’Extrait has got the newest advance technology in cosmetic market, more suitable price and gives better result. 3. Strengths, Weak points, Opportunities and Threat Examination 1 . Talents: 2 . Weakness: 3. Opportunities: 4. Threats: 5. 11. Effects of global economic crisis on Vietnam economic system: The crisis on global economy has certain affects on Vietnam. One of them can be effects in people’s spending habit. Due to pressure upon difficulties in economy, consumers will purchase fewer products and they simply buy important goods.
Therefore, luxury merchandise like Intacte L’extrait will not attract various people, however, rich. That will be a resistance to Lancôme’s income. 2 . Marketplace For each of our product, we focus on focusing on the end users, as these customers make the decision to buy.
Our marketplace is professional women over the age of 30. These kinds of women are concerned with the signs of aging and trust Lancôme, as they believe Lancôme can be devoted to quality skincare goods. These professionals gain upper profits and are in urban areas.
They can be buyers of fashionable clothes, premium companies shop in upscale malls. 3. Item differentiation Merchandise differentiation is definitely the significant other 50 % of product placing: the two must work together to be successful. Many manufacturers offer creams that are designed to reduce the sign of aging around the face.
Thus, it is detrimental to the success of a product that it provides addition rewards and features that make it more appealing to the customers than the market alternatives. Complete L’Extrait differentiates its personal from its opponents through the advantages listed below: Sixth is v. Marketing Strategy: 1 . Product Strategy: Our product strategy for Lancôme’s Absolue L’Extrait Cream is “Product differentiation”. Products created by our rivals to reduce signs of aging possess over and over proved to be ineffective.
With Lancôme’s Absolue L’Extrait Cream, we changes this notion. Women can easily experience Lancôme’s revolutionary skin care innovation and our most powerful regenerating component, Lancôme Rose Native Cells. As explained in the earlier Item Preview section, our legend ingredient, Rose Stem Skin cells, is believed to be in a position of “stimulating human dermal stem cells”.
The natural regenerating potential of grow stem cells and the self-renewal of the skin’s own dermal skin cellular material provide a twice boost profound in the skin’s makeup, creating a smoother, even more radiant plus more youthful overall look. 2 . Costs Strategy: “Lancôme’s Absolue L’Extrait Cream is considered the most advanced merchandise; it delivers efficiency proportional to its value”, in respect to Youcef Nabi, chief executive of Lancôme company. The suggested selling price for this product will probably be $385, the cost that is a bit higher than the major opponents.
The perceived benefits of our product are high with regards to the price, for that reason Lancôme is usually taking on a value- pricing strategy. Physique 1 Price/Value Map for the Lancôme’s Absolue L’Extrait Cream While shown in Figure you, our system is in the Reasonable Value Zone at the Premium point. We could use this value-pricing strategy based on certain conditions. First, the superior quality of the product and our company, Lancôme, can support the larger price our loyal customers will trust and buy this device. Second, our target client, upper-class ladies, will value the value as opposed to the cost of the item they order.
Finally, competition cannot be capable to enter the marketplace because of our unique method in the cream, therefore they cannot undercut our price. Employing this strategy, we believe we will be capable of gain plenty of market share. several. Distribution Technique: L’oreal Vietnam company is the central distributor of Lancôme in Vietnam.
The channel approach is to use distinctive distribution, which in turn enhances Lancôme’s image and allows bigger markup. We focus on promoting the cream through the chain of Lancôme retailers in Parkson department stores. Parkson has eight modern and successful malls, 4 in Ho Chihuahua Minh Town, 2 in Hanoi, which can be big metropolitan areas of Vietnam with significant proportion of high income persons. Moreover, it truly is obvious that many of Japanese citizens understand Parkson as being a special site for buying luxury, pricey and top quality goods, creating advantage for Lancôme to build good brand in Vietnam and reach the target clients – prestige women.
On the other hand, it is unlucky that our business has not yet established Japanese official Lancôme website so we can’t serve buyers direct obtain. 4. Marketing Communication Approach: Our company follows the concept of integrated marketing communications-blending the advertising tools to a coordinated advertising mix. five. 1 . Advertising: Instead of employing means like television or perhaps radio, we choose Magazine and LCD advertising and marketing as the main media cars. Regarding using magazine, the purpose of our company is to fully make use of well-known, expensive magazines about beauty, whose readers are women outdated average 27 years old.
In line with the recent research we have gathered, the company choose to market through 3 well-known magazines- Elle, Her Universe and Traditions Fashion: + Elle: an international magazine of French origin with a hundred and forty, 000 readers over 20, 500 publications in Vietnam. The age of reader is above twenty seven, which is ideal for the company’s strategy. In this magazine, we all will place our full-page advertisement regarding L’extrait cream in the next cover in order to take readers’ attention effectively. + Her world: month-to-month special concerns by Sunlight Media business who bought the legal rights transferred from Singapore Her World magazine.
It is getting increasingly famous because of Vietnam’s Following Top Style contest. The company will contract with Sunshine Media consultant to launch our survived product –Absolue L’extrait cream in the same position as we have in Elle magazine. & Heritage style: In-flight publication for Vietnam Airlines. The objective of ours in marketing with this kind of publication is to reach female clients in home flight of Vietnam Airlines. To avoid lacking key consumers who don’t have a chance to read publications as Elle and Her World, History Fashion is a perfect choice to introduce to them our new product if they spend time to unwind during their flights. *Months of publication: Feb ., April, Summer, August, March, December.
Additionally , we plan to use FLAT SCREEN advertising in our marketing strategy. It of merchandise will appear about LCD monitors of Parkson department stores, which are placed in elevators or the halls. The customers can passively use of our merchandise without goal.
This method works better than Television set advertising. your five. 2 . Direct Marketing: +Website: along with working with Elle in marketing in publication, we also like to put banners about the product at the spot of the main website of Elle: http://www.elle.vn/ and Parkson: http://parkson.com.vn, which will lead the customers directly to the company Facebook webpage providing comprehensive product‘s information. Absolue L’extrait‘s features and price will probably be updated in Parkson web page as well.
Furthermore, the company can put the reports of Totale L’extrait in the front web page in our Internet site so that our loyal, potential and first- time clients can easily approach to the product. +Online Social networks: Fb is the best choice to get online marketing in Vietnam because most of Vietnamese internet users have one or more Facebook account while Twitter seems to be ignored here for some reasons. Therefore , we will you can put introduction of Absolue L’extrait as party on Facebook or myspace page and update as well as answer the queries about this product. 5. three or more.
Sales Promo: +Displays and demonstration: We will send all of our retail stores large color advertising campaign to display in the marketplace as well as small brochures explaining our merchandise and its feature in Vietnamese. The screen needs to focus on that Totale L’extrait cream is the most ground breaking and extravagance product of Lancôme. +Sample: Another technique is that samples will be available to consumers, this is certainly a great way to “try before you buy”. Testing develops a loyal buyer because the buyer will only go back to purchase the product if she genuinely appreciated it.
The company will give limited number of selections to customers who purchased over 3 million Vietnam dong. The sample will begin to be passed to consumer 1 month prior to introduction with the product. 5. 4. Personal selling: The company will provide sales agents about thorough information in the product such as superior features and advantages to give the valuable advice to customers.
Besides, since Lancôme entered Vietnam market 5 years ago, the brand has had substantial quantity of faithful customers with strong perception in our product. Lancôme salesmen are also properly trained to build and look after close romantic relationship with those ones. These kinds of sale consultants will exposure to the potential consumers about the existence of the latest product- Absolue L’extrait anti- aging cream. All their interpersonal connection skills make them to deliver a clear, concise and consistent concept to your potential customers about the product and give the reasons why they should obtain it, basing on the salespeople’s understanding about them.
Counter sales agents need to collect customer info and follow up with the every customer three or more days following your samples are given to guarantee effectiveness or else its cash down the drain. five. Marketing Business: Marketing business will expose the overall view about how the marketing campaign operates and how it gains success. Ms.
Sonia Chiu, the chief marketing expert at Hard anodized cookware Region, is in charge of planning and designing an over-all marketing strategies and handing it over to the subordinators within the supervision. * Store marketing supervisor investigate any and every substitute distribution network opportunity (street merchants, Net, etc . ) and work with negotiations, for example about the promotional advertisments delivered through distributing brand stores. 2. Distributing supervisor is 1 subordinator whom carries out the logistics and distribution of new- launched product throughout the only retailer channel – Parkson. This division will take action under the leading of store director. VI. Action Programs: The business decide to start Absolue L’extrait in September 4th, 2012.
Following will be summaries in the action programs we will certainly implement in six next months since this June fourth, 2012 to obtain our stated objectives. June. Pre-launch action month: Via June fourth, 2012. The campaign will certainly officially begin in all 6th Lancôme shops in Parkson’s malls.
The Vietnam L’oreal company will send representatives to each one to support decorating with all the image of Intacte L’extrait showing in the stores. The leaflets are going to be placed in money desk. These types of actions should be implemented early in order to entice the customers ‘curiosity. We also want to initiate the method “try just before you buy” to our buyers, therefore , the samples will be sent to Sixth is v. I. P and consumers with previously mentioned 3 , 000, 000 product invoice until the end of Summer.
Counter sales agents need to accumulate customer data and follow up with the every customer 3 days following the sample was handed to guarantee effectiveness. Furthermore, our schooling staff works with revenue personnel for 6 shops to explain excellent features and advantages of the cream. Upon Facebook, we will set July next as important event and give the product’s information. We plan to compose an article presenting new anti-aging cream of Lancôme -Absolue L’extrait and publish it on double page pass on of Elle, Her Globe and History Fashion with detailed info. Every LCD screens in each Parkson department stores is going to run video of Absolue L’extrait.
July. Launch month: The program of handing examples need to be ended. The product will be put in an eye catching placement in the stores and the Absolue L’extrait banner has to be placed in front side of each store in order to catch the attention of customers passing by. The salespeople will start to contact with their loyal buyers through mobile phone, e-mail or a close discussion.
They will make an effort to remind consumers entering store about the appearance of the product. Ad will be make the fourth cover in Elle and Her World mag. On the primary page of Elle’s web page, the product’s banner will appear once people get and cause them to our Facebook or myspace page. August.
The company will register to accomplish marketing in Heritage Style magazine while using same position as in these 2 journals to target business women who generally get plane tickets and Versus. I. S of Vietnam Airline that usually receive this magazine. Sept.
2010. In this month, because the Historical past Fashion will never be published, all of us will continue with Aug strategy. The of customers after using Absolue L’extrait will probably be posted on facebook.
October. Sales agents continue to assure the performance of the merchandise by contacting with their customers. Advertisement upon magazines even now goes on subsequent to the timetable and with publication of Heritage Vogue in this month. November.
Advertisement campaign will certainly continue as September. The results of customer satisfaction research and feedbacks will be reviewed carefully. We shall start to collect the reply from the customers and readers of three magazines regarding the campaign to receive improvement for marketing actions. VII. Spending budget ( in one year coming from 7/2012 to 7/2013 ) By placing objective directed at unit sales per year can be 10, 000, total first year revenue revenue to get Lancôme in Vietnam can be projected in $3. your five million, using a selling price of $350 per unit (without VAT), and variable cost of $300 per unit (the cost included importing duty ). The first yr profit are anticipated around $237, four hundred.
Break-even calculation indicates that Lancôme’s Complete L’Extrait Cream will become profitable after the sales volume surpasses 5, 252 units from this year. The break even analysis of Lancôme’s Absolue L’Extrait Cream takes on that earnings in this year is $3. 5 million, variable expense per unit is three hundred, and the predicted fixed costs is $262, 600. Based on these assumptions, the break-even sale quantity is: $262, 600÷$350-$300=5, 252 units Breakeven sales: a few, 252 ×$350 =$1, 838, 200 VIII. Controls Through this advertising plan, each of our corporate goals have been projected and each of our methods for attaining these desired goals have been identified.
To guarantee accomplishment, the company has to re-evaluate the progress towards these desired goals in every single quarter to ascertain if our marketing strategy is functioning properly and profitably. Whether it appears that we are not appointment our desired goals each one fourth, we should analyze our marketing prepare and generate adjustments. Resource Background information and market data adapted by: http://stylist.vn/tin-tuc-lam-dep/lancome-sap-sua-ra-mat-dong-kem-duong-ky-dieu.html http://www.phunuonline.com.vn/thoitrang-lamdep/2009/Pages/Lancome-ky-niem-3-nam-hien-dien-tai-Viet-Nam.aspx http://www2.lancome.com/_en/_ww/index.aspx http://www.parkson.com.vn/vi/taxonomy/term/20 http://duhoc.dantri.com.vn/c23/s156-62983/estee-lauder-muon-chinh-phuc-viet-nam.htm http://www.esteelauder.com.vn/?q=website_admin%2Fevents&menu=316|339| http://www.ytuong.com.vn/?module=detail&pid=3&id=253 http://www.lantabrand.com/cat3news3023.html http://www.clinique.vn/?q=website_admin%2Fnode%2F14%2F&menu=133