Final project Marketing Plan
“Biotherm Shower Kids”
Student: Susanne Fischer Lecturer: Edgar Barroso
1. Executive Summary
Biotherm, one of the luxury brands of L´Oréal, is going to launch a new product in the child care segment, the shower gel “Biotherm Shower Kids”, developed especially for the sensible skin of babies and kids. Its first launch will be in Germany, as its market for luxury cosmetic products is highly attractive. According to McKinsey German consumers spent more in luxury purchases than other European consumers (over €1,300 per capita in 2011). (McKinsey, 2011) The following marketing plan gives an overall business analysis of L´Oréal and its successful brand Biotherm, the objectives concerning the new product for the next 3 years, defines the chosen target group and outlines the marketing strategies as well as the financial forecasts and the implementation plan.
2. Business Analysis
Company Description (L´Oréal)
L´Oréal Group is the largest beauty and cosmetic company in the world. Its portfolio covers 27 different brands and in 2011 L´Oréal owned more than 600 registered patents. The company´s product range covers a wide range of make-up, perfume, hair and skin care products. Currently L´Oréal, headquartered in Clichy, France, operates in over 130 countries and employs 68,900 people. The company recorded revenues of €20.3 billion in 2011 which is a growth of 5.1% compared to 2010. L´Oréal is divided into 5 different divisions which are consumer products (e.g. L´Oréal Paris, Garnier), professional products (e.g. Kérastase, Redken), luxury products (e.g. Lancome, Biotherm) and the Body Shop. Each division is an expert in its field which enables the group to meet the expectations and needs of its different consumer segments. L´Oréal considers the consumers purchasing patterns, lifestyles and purchasing power into their strategy and tries to adapt to local distribution conditions all over the world. (L´Oreal, 2012) Mission: BEAUTY FOR ALL: L´Oréal ´s mission is to help all individuals to express their personality by offering to all women and men worldwide the best and most innovative cosmetic products. (L´Oréal, 2012)
Core competences and sustainable competitive advantage Product Innovation Marketing Campaigns Differentiated target groups Diversity of employees 2
Product Innovation The intention of L´Oréal is to develop every year 1 or 2 new innovative products to all its international markets. Therefore they currently invest 3% of their sales in Research and Development. This competitive advantage is hard to imitate for competitors and secures it´s leadership n the market. (L´Oréal 2012) Marketing campaigns L´Oréal´s unique Marketing campaigns with well- known celebrities differentiate them from their international competitors. Through the celebrities high brand esteem is created all over the world. (L´Oréal 2012) Differentiated target groups L´Oréal tries to satisfy the needs of many different ethnic groups in the world. Different cultures have different needs which L´Oréal tries to serve with its differentiated strategy. (L´Oréal 2012) Diversity of employees In order to meet the needs of different ethnic groups it is crucial to recruit also people from all over the world. Therefore L´Oréal e.g. have partnership with different universities in Africa, USA, Latin America, France etc.
PESTL- Analysis Political: L´Oréal is active in different political environments therefore it also has to face different regulations of the particular markets. Whereas the western economies are stable and predictable the situation in emerging markets is less stable due to change of political regimes for example. Economic: Also here the picture is very different. While most the western economies are characterized by an economic downturn the emerging markets have high growth rates and a lot of potential in the future. Socio-Cultural: Difficulty of meeting the...