miss alpha l'oreal campus finals presentation
DESCRIPTION
campus finalsTRANSCRIPT
JENNY LI | SARAH SHIN | JINNA WANG
THE BRAND & MARKET
THE COMPETITION & LANDSCAPE
AGENDA
THE PRODUCT & STRATEGY
THE CONSUMER & CHALLENGE
Hair StylingHair StylingHair Care
Consumer Products Division
“BEAUTY within reach”
Hair CareSkincare Cosmetics
(our focus)
THE BRAND
ASEAN ECONOMY EXPANDING
Middle Class
MOREDisposable
Income
INCREASEDDemand
THE MARKET
EVOLUTION OF THE HAIRCARE INDUSTRY
THE MARKET
2005 2012
Dying sales of 2 in 1 products
Colorants are slow but steady
Consistent salesin Salon Hair Care &
Total Shampoo
High but fluctuating in Styling Agents
Stable sales in Hair Loss Treatment
The rise of Conditioners
Perms and Relaxants are slowing
17%
30%
18%
35%
Unilever P&G L'Oreal Other
59%
22% 5% 1
4%
50%
29%
3%
18%
51%
31%
5%
13%36%
18%
46%
47% 28%
13%12%
COMPANY market share BRAND market share
Malaysia Philippines India Thailand Indonesia
(Percentages based upon the top 10 products in each country)
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1. Unilever• Plans to increase focus on operations in US,
Western Europe, and China 2. Proctor & Gamble
• Aims to increase operating efficiency• Leader in revenue growth
3. L’Oreal Paris• Highest margins means operational advantage
Greatest Operational Advantage
THE COMPETITION
STRENGTHS- High-end brand image
- Marketing Experience
- Consumer knowledge
WEAKNESSES- Low market share
- Unavailable product for middle class
OPPORTUNITIES- Growth of conditioner sales
- High- growth market
-Expansion into middle class consumers
THREATS- Strength of competitors
- Increase in counterfeit goods
- Macroeconomic factors that decrease consumers’ spending
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SWOT ANALYSIS
“Which existing haircare product(s) would you push to attract more consumers in the 15-35 age range in the ASEAN zone?”
“How would you re-launch your product/product range in order to regain impact on your target market?”
CONSIDERATIONSIn pitching the perfect product for the ASEAN zone, we took into consideration the following factors:
GEOGRAPHY GENETICS GROWTH
THE CHALLENGE
EMPOWERED
EDUCATED AMBITIOUS
BUSY
IMAGE-CONSCIOUS
YOUNG
THE CONSUMER
ANNISA’S WISHLIST AND CONCERNS
IMPORTANT FACTS
•Under-availability of water supply in SE Asia
•Most women use cold water to wash their hair
•The Jilbab headscarf creates damp conditions in the scalp
•Damaging to overall hair quality
•Strength •Healthy Scalp•Smoothness and Manageability•Shine•Long Length
Yes! No!
•Damaged Hair•Split Ends•Dullness•Dryness•Hair Breakage
THE CONSUMER
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SO WHAT CANL’OREAL DO?
5 PROBLEMS1 SOLUTION
TOTAL REPAIR 5Conditioning Restoring
Spray
FULL
SILKY SMOOTH
REVITALIZED
SHINE
STRONG
HAIR FALL
ROUGHNESS
DRYNESS
DULLNESS
SPLIT-ENDS
Pro-Keratine & Ceramide enriched formula
restore quality to hair damaged by hair-coloring
super easy to use
constantly revitalizing her hair when it is needed the most, even while Annisa wears her headscarf.
Why the Spray Works
Restore quality to hair damaged by hair-coloring
Waterless application
THE STRATEGY
“SHARE YOUR STORY” CAMPAIGN
Consumers will share how they are diligently pursuing their ambitions, & where the Total Repair 5 conditioning spray would fit into their busy lives.
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Share Your Story
Off-line On-line
A TWO-PART STRATEGY
Educate + Connect
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OFF-LINE
• Student ambassadors will promote Total Repair 5 spray to peers
• Distribute samples and coupons to build relationship between consumer and the L’Oréal Paris brand
• Each ambassador spearheads Share Your Story at respective school
Secondary School & University Ambassadors
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• Will coordinate with shopping centers to offer free hair care service and advice
• Encourage women to “share their story” with L’Oréal during workshop
• Leave consumers with an understanding of where the Total Repair 5 spray could fit into their lives
OFF-LINEPop-Up Salons & Workshops
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After starting my first job, I always found myself crunched for time, rushing at 7am to catch the bus to work. The TR5 spray is a life-saver! I can use it during my commute, and look polished & presentable at work. Thanks L’Oréal!
Pop-up Salon Invitation
Sample Story
Southeast Asia vs. Rest of World
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Social Networking ReachWeb Population
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ONLINE STRATEGY – SOCIAL MEDIA
The Strategy Share Your Story Offline Social Media Gaming Video Series
The Online Gaming Sector
ONLINE STRATEGY – SHARE YOUR STORY
•Southeast Asian gaming revenues expected to double by 2015
•Create a digital L’Oreal Paris world where women are represented by their Share Your Story profile
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Short Video Series
•Create videos using popular drama story lines and actors - the final video of the series will be based on Share Your Story
•Make TR5 blend seamlessly into the campaign with product placement
•Make it Viral!
ONLINE STRATEGY – SHARE YOUR STORY
Because They’re Worth It.
QUESTIONS?
APPENDIX
2006 2007 2008 2009 2010 2011 2012 2013E 2014E 2015E
2 in 1 -37% -29% -17% 20% -11% -7% -6% -5% -5% -4%Colourants 4% 5% 4% 5% 5% 2% 2% 2% 3% 3%Conditioners 11% 10% 9% 9% 8% 6% 6% 6% 6% 6%Hair Loss Treatments 8% 7% 6% 5% 5% 3% 3% 4% 4% 4%Perms and Relaxants 4% -13% -17% 5% 5% 2% 2% 2% 1% 1%Salon Hair Care 7% 7% 4% 0% 5% 1% 1% 2% 2% 2%Shampoos
Medicated 9% 8% 5% 8% -2% 1% 1% 2% 2% 2%Standard 12% 8% 7% 0% 5% 2% 2% 2% 2% 2%Total 7% 7% 7% -1% 6% 2% 2% 2% 2% 2%
Styling Agents 11% 10% 9% 7% 10% 5% 5% 5% 5% 5%Total Hair Care 6% 6% 6% 6% 7% 3% 3% 3% 3% 3%
2006 2007 2008 2009 2010 2011 2012 2013E 2014E 2015E
Philippines 10% 7% 9% 8% 8% 5% 5% 4% 4% 4%Malaysia 15% 12% 8% 7% 6% 4% 3% 3% 3% 3%Indonesia 14% 14% 12% 13% 13% 10% 11% 11% 11% 12%Thailand 6% 7% 6% 7% 6% 5% 5% 5% 6% 7%
Average Growth 11% 10% 9% 9% 8% 6% 6% 6% 6% 6%8%
% Growth of Hair Care by Category
% Growth of Conditioners
ASEAN Market Trends: Growing Conditioner Sales
APPENDIXASEAN Market Trends: Opportunities for Growth with Elsève
L'Oreal Presnce in Southeast Asia 2007 2008 2009 2010 2008 2009 2010
Professional BrandsL'Oreal [Salon Hair Company] 37.8% 41.2% 44.6% 44.9% 3.4% 3.5% 0.3%L'Oreal Professional [Salon Hair Care Brand] 26.9% 29.8% 32.4% 32.6% 10.7% 9.0% 0.4%L'Oreal Professional [Hair Care Premium Brand] 15.8% 17.5% 18.2% 17.5% 11.1% 3.9% -3.9%
Hair Care BrandsL'Oreal [Hair Care Company] 7.6% 8.1% 8.5% 8.5% 6.2% 4.3% 0.9%Elseve [Hair Care Brand] 1.9% 2.0% 2.1% 2.2% 7.1% 6.7% 3.1%L'Oreal Studio Line [Hair Care Brand] 2.0% 2.2% 2.3% 2.4% 10.3% 4.7% 4.4%
Haircare Brand Shares 2007 2008 2009 2010 2008 2009 2010
Elseve Indonesia 2.0% 2.0% 2.2% 2.3% 0.0% 10.0% 4.5%Elseve Malaysia 3.1% 3.3% 3.5% 3.6% 6.5% 6.1% 2.9%Elseve Thailand 0.5% 0.7% 0.7% 0.7% 40.0% 0.0% 0.0%
Average 1.9% 2.0% 2.1% 2.2% 7.1% 6.7% 3.1%
L'Oreal Studio Line Indonesia 2.2% 2.2% 2.2% 2.2% 0.0% 0.0% 0.0%L'Oreal Studio Line Malaysia 2.4% 2.7% 2.9% 3.2% 12.5% 7.4% 10.3%L'Oreal Studio Line Philippines 2.8% 3.3% 3.5% 3.6% 17.9% 6.1% 2.9%L'Oreal Studio Line Thailand 0.4% 0.4% 0.4% 0.4% 0.0% 0.0% 0.0%
Average 2.0% 2.2% 2.3% 2.4% 10.3% 4.7% 4.4%
% Market Share % Growth
APPENDIXASEAN Competition: Company & Brand Growth
Growth in Market Share 2008 2009 2010
P&G 1% 1% 0%Unilever 2% 1% 1%L'Oreal 9% 4% 2%
Top 3 Brands in Southeast Asia
P&G Unilever L'OrealPantene Sunsilk ElseveRejoice Dove L'Oreal StudioHead & Shoulders Clear L'Oreal Professional
2008 2009 2010-2%
0%
2%
4%
6%
8%
10% UnileverP&GL'OrealOther
P&G, Unilever, and L'Oréal have all slowly been losing market share despite the increase of sales in Southeast Asia. The slowdown has largely been caused by increasing competition.
ASEAN PRODUCT PORTFOLIO
Moderately
Priced
Elegant
HighPerforman
ce
Smooth Intense
Total Repair 5
Re-Nutrition
Nutri-Gloss Light
Fall Repair 3X
Color-Vive
THE BRAND