MM final exam apr 2023 marketing plan for LOréal brand

UNIVERSITY OF FINANCE AND MARKETING MAJOR OF MARKETING FINAL EXAM MARKETING MANAGEMENT COURSE CODE 2311702006001 TOPIC ANALYSIS AND MAKING MARKETING PLAN FOR L’ORÉAL BRAND Lecturer Th S Ngo Minh Trang.

UNIVERSITY OF FINANCE AND MARKETING

MAJOR OF MARKETING

FINAL EXAM MARKETING MANAGEMENT COURSE CODE: 2311702006001 TOPIC: ANALYSIS AND MAKING MARKETING PLAN FOR L’ORÉAL BRAND

Lecturer: Th.S Ngo Minh Trang

HO CHI MINH CITY – 2023

UNIVERSITY OF FINANCE AND MARKETING

MAJOR OF MARKETING

FINAL EXAM MARKETING MANAGEMENT COURSE CODE: 2311702006001 TOPIC: ANALYSIS AND MAKING MARKETING PLAN FOR L’ORÉAL BRAND

Lecturer: Th.S Ngo Minh Trang

Excutive student

Nguyễn Đinh Thanh Vân 2121007705

HO CHI MINH CITY – 2023

TABLE OF CONTENTS

CHAPTER 1: REASON FOR CHOOSE THE TOPIC 3

CHAPTER 2: EXECUTIVE SUMMARY 4

CHAPTER 3: SITUATION ANALYSIS 6

3.1 Market Summary 6

3.1.1 Analysis of skincare industry in Vietnam 6

3.1.2 Industry trends 6

3.2 Macro – environment 6

3.3 SWOT 8

3.4 Competition 10

CHAPTER 4: MARKETING STRATEGY 14

4.1 Objectives 14

4.2 Market Segmentation 15

4.3 Target Markets 16

4.4 Positioning 17

4.5 Strategies 18

4.5.1 Product Strategy 18

4.5.2 Pricing Strategies 21

4.5.3 Distribution Strategy 22

4.5.4 Communications Strategy 22

4.6 Marketing Mix 23

CHAPTER 5: FINANCIALS 26

5.1 Revenue forecast (April 2023 – April 2024) 26

5.1 Forecast of Marketing costs and implementation time from 2023-2024 26

CHAPTER 6: CONTROLS 28

6.1 Implementation 28

CHAPTER 7: CONLUSION 30

REFERENCES 31

TABLE LIST

Table 1: Vietnam’s per capita income from 2019-2022 7

Table 2: Matrix SWOT 8

Table 3: Competitors 10

Table 4: Segmentation 15

Table 5: Analyzing Competitor’s Costs, Price and Offers 21

Table 6: Marketing plan 23

Table 7: Revenue forecast 26

Table 8: Marketing Costs 26

Table 9: Implementation 28

FIGURE LIST 1 Figure 1: Innisfree’s cream 10

2 Figure 2: OLAY’s cream 11

3 Figure 3: Laneige’s cream 11

4 Figure 4: Shiseido’s cream 12

5 Figure 5: Estée Lauder’s cream 13

6 Figure 6: Positioning map 18

7 Figure 7: The ingredient list of “LOV” 19

8 Figure 8: Packaging of “LOV” 20

CHAPTER 1: REASON FOR CHOOSE THE TOPIC

Currently, with the increasing quality of life, the general trend of cosmetic stores and beauty salons is to return to nature Cosmetic companies are actively building for themselves safe and quality brands, especially taking advantage of beauty ingredients available in nature such as: essential oils, fruits, coffee, tea green, To produce a variety of quality beauty

cosmetics

In recent days, in Ho Chi Minh City and neighboring provinces and cities, the UV index has continuously reached the red alert threshold According to the World Health Organization (WHO), the current ultraviolet (UV) index of 3 has begun to cause harm and too long

exposure to UV rays will cause damage and most seriously lead to skin cancer That siren is gradually waking up women to cherish and take care of their skin more carefully during this period and even later because the skin determines confidence in work and life Recognizing the current situation, our team believes that the decision to choose the topic of developing and launching the LOV skin anti-aging product line is completely reasonable because of the potential market that the product brings That's why we chose this as the topic of our essay

CHAPTER 2: EXECUTIVE SUMMARY

L'Oréal Cosmetics Group was founded in 1909, its headquarters are located at the Eugène Schueller Centre in Clichy, Hauts-de-Seine, near Paris After more than 100 years of

establishment and development, up to now, L'Oréal has become one of the "tycoons"

controlling and dominating the world beauty industry The Group does business in more than

130 countries and employs more than 88,000 people worldwide

L'Oréal currently holds more than 25 leading prestigious brands, divided into 4 main

categories:

• High-end categories: Lancome, Shu Uemura, Cacharel, Diesel,

• Pharmaceutical and cosmetic categories: Vichy, Skinceuticals Sanoflore, Inneov and

La Roche-Posay

• Professional Categories: L'Oréal Professionnel, Kerastase, Matrix,

• Consumer goods: Maybelline, Garnier, L'Oréal Paris,

L'Oréal's facial care products are developed according to a rigorous formula process that ensures safety and effectiveness for users, especially for sensitive skin L'Oréal facials are committed to providing dermatological care to as many people as possible At the same time, the brand always listens and absorbs feedback through the process of working with

dermatologists in the countries where the brand is sold L'Oréal's facial care products have undergone multiple trials before being officially launched and recommended by more than 90,000 dermatologists around the world These are relative numbers for a cosmetic

pharmaceutical brand With the development of online commerce platforms as well as the growing awareness of consumers about facial care, the above numbers promise to increase in the future

We will start a new L'Oréal project using this report "LOV" will be the name of the new product It is an integrated anti-aging lotion from green tea and caffeine and nutrients with the effect of nourishing the skin safely and effectively, freezing aging, forever youthful At the same time, with that use, the birth of the product is also meaningful associated with the purpose of raising charity funds for the community of people with skin cancer with the hope

of bringing healthy young skin in the beauty community in general and Vietnam in particular

Campaign activities:

• Cooperate with KOLs, celebrities to receive products and use and post photos and videos of the results before and after using the product, thereby highlighting the skin rejuvenation and skin care benefits of the product

• Applying the campaign after 24 hours, each review photo when using the product will

be donated 40,000 VND to the skin cancer charity

Mission : “LOV” wants to bring to women and men around the globe highly effective

products suitable for all skin types including the most sensitive to improve the quality of life

of anyone with skin problems, from from acne to aging, and help spread the word about safe sun protection through high-quality products and raise consumer awareness about skin

cancer

Purpose : Bringing "LOV" a new line of skin care cosmetics to customers easily and at the

same time improving brand recognition when it comes to skin rejuvenation with the message

"Aging is a fact of life, let LOV" preserve your youth” Make “LOV” the number one choice for everyone from young people to middle-aged ladies

CHAPTER 3: SITUATION ANALYSIS 3.1 Market Summary

3.1.1 Analysis of skincare industry in Vietnam

Industry revenue and growth

Vietnam's skin care product market size reached 854.3 million USD in 2019 and is expected

to reach 1,922.4 million USD in 2027 Skincare products market can increase revenue by 1,154.25 million USD from 2020 to 2027 (Kale & Deshmukh, 2020) Increasing disposable income and a growing young population are the main factors driving the product market In which, the most potential customer segment in the future is Generation Z, accounting for 39.08% of the total population Overall, these factors have increased the demand for skin care products by domestic consumers

3.1.2 Industry trends

The cosmetics and skincare industry has been growing rapidly along with the rapid

improvement of living standards in Vietnam Consumer tastes and preferences with

increasing disposable income raise the level of sophistication towards premium skin care products Luxury brands become more attractive while mass leather products decline

3.2 Macro – environment

Demographics

Vietnam has more than 93 million people in the group of young people (average age is 32.5 years old), the young population accounts for 65% People's lives are stable and the demand for beauty increases, especially from men Consumers have more product choices Once a brand has captured the minds of users, their destination is trust And L'Oréal is one of the brands that does this very well

Table 1: Vietnam’s per capita income from 2019-2022

Politics

Advantages: The business of skin care products tends to increase, in Vietnam there is a stable government, providing a stable and friendly business environment, creating favorable

conditions for enterprises to produce and trade in cosmetics products

Difficulties: However, the tax policy is still complicated, creating difficulties for imported products, thereby directly affecting L'Oréal's profits

Culture

Nowadays, people don't want to go to the skin care salon but want the products so that they can organize their own skin care at home and our company is providing such products to the consumers

In general, Vietnamese people have the mentality of buying foreign goods not only because

of the quality and design, but also because of the brand reputation of foreign enterprises, and

at the same time, Vietnamese goods have not yet created trust among consumers for many reasons In the minds of the 9x and 10x generations, Vietnamese cosmetics are images of poorly advertised mixed creams, cosmetics of unknown origin widely sold on the market

 This will be a great advantage for L'Oréal Group in general and LOV products in particular, because the product is manufactured with modern technology and natural ingredients are completely imported from abroad and circulated in Vietnam Vietnam should ensure safety and meet the needs and psychology of customers

Nature

Advantages: Vietnamese consumers are more interested in products with natural ingredients L'Oréal has created a friendly environment and activities that positively impact the

environment

Difficulties: Vietnam's climate is hot and humid, with monsoon frequent natural disasters

This greatly affects the preservation and transportation of L'Oréal's products On the other

hand, air pollution in Vietnam is quite serious and working outdoors or in front of a computer for a long time, ultraviolet rays and computer radiation are very harmful to the skin

Therefore, skin care to protect the skin is extremely important

Technology

The advanced and modern cosmetic production line element will be an important basis to

help cosmetic manufacturing and processing units get the best quality products, bringing high efficiency to consumers

L'Oréal offers virtual try-on's of the company's products before consumers actually pay We

also offer tailored solutions for individuals interested in in-depth diagnosis of skin problems

O4 - The cosmetics industry is on the rise

T4 - Consumers today have a high level of understanding and consideration when buying

S - Strengths

S1 - Wide range of products

S2 - Reputation, good quality

S3 - Product price is suitable for

middle-income people

S4 – Products are manufactured

and imported directly from

abroad, meeting the psychological

and consumer needs of customers

S5 – The product has natural

ingredients, safe for the skin,

supplementing nutrients to help

rejuvenate the skin

ST Strategies

S3 + T1: Create multiple promotions

S4 + T3: Show customers the versatility of the product S5 + T3: Product quality development

W - Weakness

W1 – No large capacity

W2 – Focusing on the main

anti-aging property, the purposes such

as whitening and acne prevention

in the product are more limited

WO Strategies

W1 + O2: Produce diverse models, increase capacity according to customer needs

W2 + O3: Improve quality, improve products, add ingredients that not only have anti-aging effects, but also have whitening and acne prevention effects for the skin

WT Strategies

W1 + T2: Diversified production, more types of capacity depending on the needs

of customers W2 + T2: Create products with good quality, meeting customer needs

1 Figure 1: Innisfree’s cream

Image

DIRECT COMPETITORS

Innisfree Innisfree Black

Green Tea Cream EX Anti-Aging Cream The product has the main

ingredient from Jeju black tea leaf extract, which has the effect of cleaning skin, increasing resistance, strong anti-oxidant and also has the effect of reducing signs

of aging

Organic fermented black tea ingredients Strong in anti-oxidant, anti-premature aging Has the ability

to improve skin tone, protect skin, antibacterial Mid-range price (600,000 VND/60ml) High product awareness thanks to famous brand

Not really strong in terms of ability to fade long-term wrinkles Contains preservatives

Innisfree is extremely diligent in researching and

investing in technology

to increasingly diversify its product lines Has a low

to range price, suitable for the

mid-company's customers

High

OLAY Olay

Regenerist Micro - Sculpting Cream Anti-Aging Moisturizer Olay's premium skincare line with a powerful anti-wrinkle formula that effectively tightens and lifts the face

Product packaging design is quite luxurious

Reduces the appearance of wrinkles, anti-aging

The cream is not too thick

so it is easy to spread

Mid-range price (VND 400.000/48ml)

Product awareness is high thanks to famous brand

Products containing parabens

When I first applied it,

my skin felt

a bit squeaky

Taking advantage

of the extensive distribution system of the parent group P&G, the Olay brand penetrates into most retail points

of the cosmetics industry

Beautiful, youthful, compact design

Skin is smooth and soft right after

The cream is quite thick

Sensitive skin should consider when using the product

Associated with the image of

"water and shadow mask" of Laneige sleeping

Average

3 Figure 3: Laneige’s cream

nutrients to help regenerate, enhance skin's youthful energy, help quickly reduce 5 main signs of aging

use

Good aging

anti-Product awareness is high thanks to famous brand

High price (1.500.000 VND/50ml)

products

Targeting young customers, especially young people who are

passionate about beauty

Shiseido

Shiseido Benefiance Wrinkle Smoothing Anti-Aging Cream

A moisture-rich anti-aging cream with an ultra-fine texture that optimizes skin's ability to improve fine lines, restore moisture and firmness

Contains herbal ingredients, extracted from nature

Long-lasting effects, up to 24h

Product awareness is high thanks to famous brand

Contains alcohol

Contains silicone

Contains flavoring

High price (1.850.000 VND/50ml)

Shiseido focuses on the

research, production and supply

of high quality cosmetic products

Shiseido focuses on providing high value and effective products to customers

Low

4 Figure 4: Shiseido’s cream

Estée

Lauder

Estée Lauder Revitalizing Supreme+ Anti-Aging Cream

Fights signs of skin aging, smoothes crow's feet, wrinkles, loss of firmness, dullness and dehydration

Very elegant design

Light texture, does not cause discomfort to the skin

Safety tested

by dermatologists

Application of Intuigen technology has the ability

to quickly restore damage, while stimulating new cell regeneration, enhancing skin elasticity

Product awareness is high thanks to famous brand

The shaped design makes the area exposed

jar-to the air large, which can cause the product

to lose quality Taking the cream is not hygienic

Contains fragrance and silicone that may cause allergic reactions in some people

High price ( 2.800.000 VND/50ml)

Focus on loyal customers

Building a premium brand

Low

5 Figure 5: Estée Lauder’s

cream

CHAPTER 4: MARKETING STRATEGY 4.1.Objectives

Short-term goals (1 year)

Increased brand awareness:

• Open product launch events, display products in front of the store

• At least 45% increase in traffic, at least 50% increase in brand engagement on the

internet and at the point of sale

• Expand distribution channels to reach new markets

• Increase online presence through social media and e-commerce platforms

• Collaborate with influencers or celebrities to increase brand awareness

Increase revenue:

• Total revenue reached 15.6 billion VND

• Total products achieved in the year reached more than 30,000 products Including 20,000 30ml sample products and 10,000 50ml sample products

Long–term goals (5 years)

Business goals:

• Achieve sales growth rate of 12%/year

• Increase the number of products sold by 40-50%/year

• Increase market share in Vietnam cosmetics market: Increase by 5%

Marketing goals:

• Increase customer loyalty for products by 15%

• Get at least 80% good reviews for excellent customer service every month

• 30% increase in frequency of customers using the product

Communication goals:

• Increase customer awareness of products by 50%

• Increase the number of people searching for products by 60%

• Increase the number of customers mentioning the product on Social Media by 40%