Post on 22-Oct-2015
LXRY642B – Marketing analysis of a luxury brand IUM
Nelly MACCARIO – MSc 1 LUX R&H | Marketing analysis of a luxury brand
1
Individual assignment
Luxury brand analysis – Yves Saint Laurent Beauty
Module lecturer: COHEN Corinne
LXRY642B
Marketing of luxury
Goods and services
Nelly Maccario
Exchange student
MSc LUX
Retail & hospitality
Academic year: 2013/2014
LXRY642B – Marketing analysis of a luxury brand IUM
Nelly MACCARIO – MSc 1 LUX R&H | Marketing analysis of a luxury brand
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Table of content
Table of content .......................................................................................................................... 2
1. Overall presentation of the brand ....................................................................................... 4
1.1 Historical background .................................................................................................. 4
1.2 Main figures ................................................................................................................. 6
2. External evaluation ............................................................................................................. 7
2.1 Main contextual elements: PESTEL ............................................................................ 7
2.2 Competitive environment ................................................................................................. 8
Perfume .............................................................................................................................. 8
Cosmetics & skin care ...................................................................................................... 12
2.3 Consumer trends ............................................................................................................. 13
Perfume ............................................................................................................................ 13
Cosmetic products ............................................................................................................ 14
Skin care ........................................................................................................................... 14
3. Internal evaluation ............................................................................................................ 15
3.1 Target consumers ....................................................................................................... 15
Segment targeted .............................................................................................................. 15
Segmentation dimensions ................................................................................................. 15
3.2 Positioning ................................................................................................................. 16
Perceptual map ................................................................................................................. 16
3.3 Brand identity & strategy .......................................................................................... 17
Kapferer prism .................................................................................................................. 17
3.4 Product strategy ......................................................................................................... 17
Product portfolio description ............................................................................................ 17
3.5 Pricing strategy .......................................................................................................... 19
Makeup ............................................................................................................................. 19
Perfume ............................................................................................................................ 19
LXRY642B – Marketing analysis of a luxury brand IUM
Nelly MACCARIO – MSc 1 LUX R&H | Marketing analysis of a luxury brand
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Skin care lines .................................................................................................................. 20
3.6 Distribution strategy .................................................................................................. 22
3.7 Advertising strategy & promotion ............................................................................. 22
3.8 International strategy ................................................................................................. 24
4. Final conclusion and recommendations ........................................................................... 24
4.1 SWOT analysis .......................................................................................................... 24
4.2 Recommendations .......................................................................................................... 25
5. References (Harvard References) ..................................................................................... 26
6. Appendices ....................................................................................................................... 28
Appendice 1: French article from the financial report of L’Oréal in 2012 .......................... 28
Appendice 2: Infography from Le Figaro concerning the beauty market in 2011 ............... 28
Appendice 3: overall perfumes of competitors of YSL Beauty ........................................... 29
LXRY642B – Marketing analysis of a luxury brand IUM
Nelly MACCARIO – MSc 1 LUX R&H | Marketing analysis of a luxury brand
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1. Overall presentation of the brand
1.1 Historical background
Yves Saint Laurent is a very famous French fashion designer who died in 2008. After
working for Christian Dior in the late of the 1950s, he decided to create, in association with
Pierre Bergé, this own maison, who was named “Yves Saint Laurent SAS”. Nowadays the
YSL SAS Company is part of Kering group, the 3rd
biggest conglomerate of luxury in the
world. The fist collection was presented in January 1962, and according to the website of the
Foundation Pierre Bergé, “that day, all fashion professionals are dazzled by what would
become a historic moment”1.Yves Saint Laurent invented the wardrobe of the modern woman,
including creating the cloak, the “Saharienne”, the trench coat, popularizing the Smoking for
woman and the jumpsuit.
“The Saharienne” “The Smoking” “The Jumpsuit”
But Yves Saint Laurent Cosmetics is a different company than YSL SAS who is concentrated
on haute couture, ready to wear and accessoiries. The core business of YSL Cosmetics is
perfume for men and women and also cosmetics (make up and skin care essentially). In 2008
the company was takeover by the L’Oreal group and joined the “L’Oreal Luxe” division. The
YSL Beauty Company also has licenses as Bucheron, Alexander McQueen and Stella
McCartney (stopped in 2013).
1 Official website of Pierre Bergé Foundation : http://www.fondation-pb-ysl.net/fr/Histoire-214.html
LXRY642B – Marketing analysis of a luxury brand IUM
Nelly MACCARIO – MSc 1 LUX R&H | Marketing analysis of a luxury brand
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The real History of the company
started by the launching of the first
perfume named “Y” in 1964. In fact,
after a journey of Yves Saint Laurent
in Japan, Pierre Bergé focuses on the
development of licenses. He meets
Richard Solomon, president of
Charles of the Ritz, which proposes
the creation of a perfume in
exchange for royalties on sales; it
was the beginning of the adventure.
Then, in 1971, in order to launch his
first eau de toilette, YSL himself
posed naked in the French edition of
Vogue, causing a huge scandal in the
press. Despite, this picture will
become iconic.
In July 1977, it is the Opium perfume that was launched. Less than a year after the death of
Mao, it is the celebration of the splendor of Imperial China. According to the Pierre Bergé
Foundation, “this is also the beginning of a scandal in the United States, up to a lawsuit for
false advertising because the scent does not contain opium”. Today, this perfume is the 7th
best sold in the world, so it is one of the symbolic product of the brand2.
In 1983 it was the launching of the perfume “Paris”, then in 1993, Pierre Bergé announces in
a press conference, the launch of a new perfume “Champagne”. The fragrance will be
renamed simply Yves Saint Laurent, following a court case brought by the CIVC (Comité
Interprofessionnel du Vin de Champagne). In December 1993, during the stop sale under its
original name, “Champage” was (in less than three months) became the best-selling fragrance
in Europe.
2 Cf. official website of L’Oreal Luxe : http://www.loreal.fr/marques/loreal-luxe/yves-saint-laurent-beaute.aspx
LXRY642B – Marketing analysis of a luxury brand IUM
Nelly MACCARIO – MSc 1 LUX R&H | Marketing analysis of a luxury brand
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1.2 Main figures
According to the French Magazine “Strategies”, in 2007, the turnover of YSL Beauté (part of
the L'Oreal group) was € 626 millions3.
According to Florentin Collomp, journalist for the French Figaro magazine, “L'Oreal bought
YSL Beauté in early 2008 to € 1.15 billion in the family group Pinault PPR (now becoming
Kering Group), which retains the split mode. Since then, the global leader in beauty has been
busy, including 1,300 people in its own staff, reorganizing production and multiplying
launches. Great beauty brand in the 1970s and 1980s, YSL had lost its luster. Most of its new
fragrances in recent years have been flops: Nu, M7, Cinema and Elle, almost all removed
from the market. […] L'Oreal aims to YSL Beauty to become one of the top five beauty brands
in the world, alongside its flagship Lancôme and Dior or Chanel competitors”4.
According to the group’s financial report, in 2012, the L’Oreal group was the 1st
mondial
cosmetic group with € 22, 5 milliard of turnover, present in 130 different countries, with a
portfolio of 27 international brands and 611 deposed patents5.
L’Oreal Luxe included the following brands: Lancôme, Giorgio Armani, YSL Beauty,
Bioderm, Kiehl’s, Ralph Laurent, Shu Uermura, Cacharel, Diesel, Victor & Kolf, Stella
McCartney and Maison Martin Margiela.
Key data from L’Oreal in 2008 (year of the purchase of YSL Beauty) 6
Turnover Operating income Net income per share Dividend
€ 17 542 million € 2 725 million € 3,49 € 1,44
3 Cf. article in the website of Stratégies : http://www.strategies.fr/actualites/marques/r48771W/yves-saint-
laurent-sans-yves-saint-laurent.html
4 Cf. article of Le Figaro : http://www.lefigaro.fr/societes/2010/09/22/04015-20100922ARTFIG00693-l-oreal-
veut-doubler-la-taille-d-ysl-beaute-en-dix-ans.php
5 Cf financial report of L’Oreal in 2012 : http://www.loreal-finance.com/_docs/pdf/rapport-
annuel/2012/LOREAL_Rapport-Activite-2012_FR.pdf
6 Cf annual report of L’Oreal in 2008 : http://www.loreal-
finance.mobi/_docs/rapport/2008/fr/chiffresCles_resume.htm
LXRY642B – Marketing analysis of a luxury brand IUM
Nelly MACCARIO – MSc 1 LUX R&H | Marketing analysis of a luxury brand
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2. External evaluation
2.1 Main contextual elements: PESTEL
Political
- Private organisms who control the toxicity of the cosmetics/perfumes
- European regulations on prohibited ingredients for cosmetics and skin care
- Quotas in sales of duty free (one of the most important POS)
Economical
- Economic crisis (customers can’t afford the wide range provided)
- Slow growth of the industry
- Substitution product with non-luxury products (less expensive)
Social and cultural
- Ecofriendly trend, bio products
- Men consume more and more beauty products (skin care and perfume)
- Reign of youth (bigger market of skincare)
- Westernization (Chinese/Indian woman wants to look like western woman)
Technological
- Innovations are in the core of the R&D departments
- The new technologies for packaging (sustainable packaging)
- The importance of being innovative is a competitive advantage for a cosmetic company
Environmental
- Sustainable development
- Non-testing on animals products
- Ecofriendly products trends (Body Shop and Lush for example)
Legal & legislative
- Ban of animal testing for cosmetics
- Regulations concerning the raw materials
- Complexity to set up a patent
- Laws on environmental protection and testing on animals for cosmetics
LXRY642B – Marketing analysis of a luxury brand IUM
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2.2 Competitive environment
This market is very competitive and complex. Indeed, a lot of companies are present, and the
luxury companies invest more and more in the R&D in order to depose patents and to create a
new product to gain market share. Indeed, the market is very attractive: according to the
magazine “Les Echos”7, “in 2009, the perfume and cosmetic market weighed € 6.6 billion of
turnover (against 6.9 billion in 2007)”. The market of YSL Beauty was to be divied by two:
perfume & cosmetics, because it is not the same market.
Perfume
A). Luxury brands
The most brands in competition with YSL Beauty are positioned in the same area: well-
known French maisons, who do Haute Couture, ready to wear and accessoiries in parallel.
CHANEL : Perfumes how are the most in competition with YSL Beauty are the “best sellers
products” like “Chanel N°5”, “Coco Mademoiselle” and “Chance” for women. For men, it is
more “Bleu de Chanel” and “Allure”.
LANCOME : Lancôme is a cosmetics and luxury products maison created in February 1935
by Armand Petitjean, a Parisian perfumer. Even if this is part of the same group: L’Oreal
Luxe, it a competitor for YSL beauty. “La vie est belle”, “Tresor” and “Hypnose” are the most
well know product of the brand. They use a lot of celebrity endosment with actors like Julia
Roberts and Penélope Cruz for example.
7 Cf aricle from Les Echos de la Franchise : http://www.lesechosdelafranchise.com/dossier-cosmetiques-
parfumerie/franchise-le-secteur-de-la-cosmetique-parfumerie-se-refait-une-beaute-4672.php
LXRY642B – Marketing analysis of a luxury brand IUM
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GUERLAIN : Guerlain is the oldest French perfumer. The house was created in Paris in 1828
by Pierre-François-Pascal Guerlain. The “Petite robe noire” is the youngest perfume of
Guerlain. But the well-know fragrance “Shalimar” is the most famous of the brand. And in
2013, the perfume has his own legend, with a beautiful video8 with the mannequin Natalia
Vodianova as principal character.
Accodring to the official website of Guerlain9 : “There are four centuries in India, Emperor Shah Jahan falls
madly in love with the princess Mumtaz Mahal. He created it for the wonderful gardens of Shalimar, and he
dedicated the Taj Mahal, one of the seven new wonders of the world. This incredible story ignited the
imagination of Jacques Guerlain, who in 1925 created Shalimar, the first oriental fragrance of history”.
CHRISTIAN DIOR : The most popular perfumes for Dior are “J’adore”, “Poison” and
“Miss Dior” for women and “Dior Homme” and “Eau sauvage” for men. They use a lot of
celebrity endorsment to sell their product, particularly with actors. For example a very famous
add with Charlize Theron in the Palais of Versailles (to show the French aspect of the brand),
Alain Delon and Natalie Portman for Miss Dior.
8 See the video: http://www.youtube.com/watch?v=vL6XJw8Oe5M
9 Official website of Guerlain : http://www.guerlain.com/fr/fr-fr/parfums/parfums-pour-femmes/shalimar.html
LXRY642B – Marketing analysis of a luxury brand IUM
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GIVENCHY : At the opening of his house in 1952, Hubert de Givenchy cultivated a mixture
of fantasy and elegance, like Audrey Hepburn, his muse. Today, the company offer ultimate
chic fragrances as a line of bold and creative makeup. The most famous perfume of this
maison is “Very irresistible” (with Liv Tailor as celebrity), “Ange et démon” (characterized by
Uma Thurman) for woman and “Gentleman only” and “Pi” or “π” for men.
JEAN PAUL GAULTIER : Jean Paul Gaultier, fashion designer and perfumer is considered
worldwide as a symbol of French culture. He is often nicknamed "terrible child of fashion"
because of this provocative side (the famous corset of Madonna). The bestsellers perfumes of
this maison are: “Classique” and “Le mâle”, who are complementary (woman/man). The
universe of the brand is very interesting and it creates a very particular atmosphere. The
company does not use celebrity endosment but the “sailor” of “le male” is very well known.
And in 2013, the new campaign “on the dock” create the buzz with a very beautiful video
THIERRY MUGLER: the more famous perfumes for this French brand are
“Angel”, “Alien” and “Womanity”. The company creates a new way to buy
perfume “La source” that is in fact a perfume fountain where customers can
fill their empty bottle of perfume. They are very innovative and they try to
gain market share with this new way to consume (buy only that we need).
LXRY642B – Marketing analysis of a luxury brand IUM
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B). Licenses
A license agreement is a contract by which a company owning a brand allows a third
company to market different products under the licensed name. A lot of examples are
available in the perfume industry:
- Coty Inc : who market Celine Dion, Calvin Klein, Marc Jacobs, Cerruti, Davidoff,
Jennifer Lopez fragrances
- Estée Lauder Inc. : parfums Estée Lauder, Clinique, Donna Karan, Michael Kors,
Tom Ford and Tommy Hilfiger.
- Inter Parfums : fragrances from Burberry, Balmain, Boucheron, Lanvin, Montblanc,
Jimmy Choo, Van Cleef & Arpels.
- L'Oréal : perfume from Giorgio Armani, Cacharel, Diesel, Lancôme, Ralph Lauren,
Victor & Rolf, Yves Saint Laurent and Lancome.
- LVMH : perfume for Dior, Givenchy, Kenzo, Guerlain, Fendi, Benefit Cosmetics and
Sephora.
- Procter & Gamble : perfume Lacoste, Hugo Boss, Dolce & Gabbana, Gucci, Rochas
and Escada.
- PUIG : perfume for Nina Ricci, Prada, Carolina Herrera, Paco Rabanne and
Valentino.
LXRY642B – Marketing analysis of a luxury brand IUM
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Cosmetics & skin care
Luxury brands
Every luxury brand listed above has cosmetics and skin care lines. It
is part of the dream they sell. Especially for skin care because they
have the necessary resources to invest in R&D and to advance the
progress. It is interesting to notice that the color code of these luxury
brands is very pure: only black and white. For the cosmetic and
perfume market they use a lot of gold too. And of course the
red/black code for the makeup. Jean Paul Gaultier is a precursor
because the maison was the first to create an entire line of make up
for men. Lancôme launch in 2008 the first vibrating mascara named
“Oscillation”. The new trend of these brands is to open their own specialized shop in big
cities. For example Chanel opens a “beauty boutique”10
in the center of London in Coven
Garden. It permit to give this own personality to the beauty brand and to have a better brand
image.
Middle range brands
The middle range brands are sold in supermarkets or in specialty
stores (perfumeries like Sephora, Marionnaud or Nocibé in France.
Indeed, the “Sephora” brand and “make up forever” (who is the
professional brand of Sephora) are exclusively sold in Sephora
stores (part of the LVMH conglomerate). Mac (upper range of
makeup) has their own store in the biggest cities. Bourjois and
L’Oréal are sold in supermarket (Monoprix and others). Yves
Rocher is not a competitor because the brand only sold his own products. And the others
lower range brands are not competitors neither because the quality offered is not the same and
the product, the dream itself is not the same than YSL product. The bio products sold by a
brand like “Lush” are not competitors of YSL beauty because it is for sure not the same
product and expectations from the customers.
10
Official website of Chanel beauty boutique : http://popupstore.chanel.com/coventgarden/flash/index.html
LXRY642B – Marketing analysis of a luxury brand IUM
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Pharmaceutics brands
These brands are specalized in pharmaceutics products. They use a lot
of innovation and spend lot of money in R&D in order to find the
“miracle product” especially in skin cares and anti-aging products. The
rivalry is very important in this sector because the market is very wide
and worldwide (even new consumer in China want to stay young and
are influenced by the western countries especially for the makeup and
skincare market).
2.3 Consumer trends
Perfume
In Europe, the market of perfume is in full expansion. Particularly in France where the market
was born. According to the Sleever International website 11
: “in this countries, perfume
market is particularly demanding and mature (7 out of 10 women use perfume in Europe)”.
Brands must be compete for talent and creativity to meet customers constantly looking for
something new and conquer younger and male targets.
But, in China this market is not interesting. In fact, the scents are not part of the habits
instilled in Chinese history. They don’t have the same attachment to the perfume that we have
in Europe. In fact, less than one percent of China's population now use perfumes in
comparison with 60% in Western Europe or the United States. The lack of perfume history
creates a big catching up to the fragrance market in China. This is why brands try to establish
this culture to younger consumers.
According to the researsh and market article of 201312
“Fragrances are increasingly viewed
by consumers as part of visual culture, and are therefore becoming an essential part of a
daily beauty regime. Consumer preferences are becoming more sophisticated and complex,
resulting in stronger demand for more intense and indulgent sensory experiences”.
Effectively, the perfume industry is very competitive and the different brands are to be
innovative in order stand out from worldwide competitors: every maisons or brands launch his
own perfume and consumers are more and more demanding.
11
Sleever International website : http://www.sleever.com/fr/trends/solution/parfums-un-marche-mythique-mais-mature 12 Article from Researsh Market : http://www.reuters.com/article/2013/07/25/research-and-markets-
idUSnBw255659a+100+BSW20130725
LXRY642B – Marketing analysis of a luxury brand IUM
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Cosmetic products
According to a blog specialized on business in China13
, “sales of beauty products are
booming in China. Indeed, consumers, especially young people, are more and more attention
to their health and therefore more interested in personal care products”. Nowadays, the
importance of the Corporate Social Responsibility of a cosmetic company is much more
important than ever. The environnemental issues are very important for consumers. They
want to buy products from companies who care about the environment. Obviously, the animal
testing issue is a key element for the cosmetic industry. More and more customers are
sensitive to the kind of test using for create products. For consumers, the use of natural
ingredients is now essential; they don’t want aggressive cosmetics with too many chemical
products.
Skin care
Emerging countries are very fond on this market: Chinese customers love takes care of their
skin and Brazilian too. The westernization of these markets is very important for cosmetics
companies. Indeed, they can expand worldwide and attract new consumers. Skin care
products are selling to more younger woman, because of the “reign of youth” trend. But
western men use increasingly skin care product. This market is very attractive, thanks to it
democratization in terms of average age of the clientele, but also in terms of nationality.
According to an article of Sleever International, “protection (hydration and sunscreen)
becomes more than ever a priority. The bearer of the anti-aging niche (heart of the market),
trademarks replicate to cosmetic surgery products with more technical inspired by
dermatologist’s techniques”.
13
Cf. Marketing in China blog : http://www.marketing-chine.com/analyse-marketing/le-marche-des-parfums-en-
plein-essor-en-chine
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3. Internal evaluation
3.1 Target consumers
Segment targeted
Positioning is the act of designing the company’s offering and image to occupy a distinctive
place in the mind of the target market. YSL beauty targeting a “high-quality position” brand
of cosmetics, make up and skin care. The company also tries to attract younger customers. In
this way, the firm has to do several strategic choices:
- produce high-quality product by investing a lot in R&D,
- charge a high price in order to justify the luxury,
- distribute through high-class dealers (official website of the brand, or specialist shops
as Sephora, Nocibé, Marionnaud, Galeries Lafayette and on duty free too)
- And finally, advertise in high quality magazines, for example in France: Madame
Figaro, Vogue, Glamour, Marie France…)
Segmentation dimensions
YSL Beauty has different segmentation dimensions:
- Geographic: especially for makeup. Indeed the western and eastern customers have
not the same values. For example, in China, women use only red lipstick. That is why
the company has to adapt itself to the country.
- Demographic: YSL Beauty tries to attract younger customers by launching the
“Babydoll” makeup range. The company target a certain social class who can afford
luxury cosmetics goods.
- Lifestyle: the target of the brand is young customer who can afford luxury makeup and
skincare. But for perfumes it is different, because that perfumes is the easier way for
low professional society to enter in the dream of luxury brands.
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3.2 Positioning
Perceptual map
In this perceptual map, all of the market is represented: perfume, cosmetics and skincare. In
this way, we can realize how much the market is competitive. There is no space available in
the map for new brands, the market is saturated, but because of the high demand and the size
of the market, every company can have this place and gain market share.
A lot of companies deal with the 3 business (cosmetics, perfume and skin care): Chanel, Dior,
Jean Paul Gaultier, Guerlain, Estée Lauder, Givenchy and Lancôme. They are the main and
closer competitors of YSL.
Some of these brands are specialized in cosmetics: Sephora, Urban Decay, L’Oreal, MAC,
Make-up forever and Bourjois. Their core business is cosmetics, so they have the expertise to
provide good quality makeup, even if they are more positioned in the “mass market” and no
the luxury industry; they don’t sell the same dream than YSL.
Others brands are only specialized in skincare: Clarins, Nuxe, Bioderma, Clinique and
Shiseido. They have a good knowledge in this market and they spend a lot of money in R&D.
The other brands of the map only do perfume: Lanvin, Hermes, Tom Ford, Prada, Giorgio
Armani, Hugo Boss, Nina Ricci, Paco Rabanne, Thierry Mugler, Calvin Klein, Diesel,
Lacoste, Lolita Lempica, Kenzo, Marc Jacobs and the other licenses like Lagy Gaga’s
perfume. It is the most competitive market, especially because of the ease to create licenses.
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3.3 Brand identity & strategy
Kapferer prism
3.4 Product strategy
Product portfolio description
According to the UK official YSL Beauty website14
, the portfolio is very wide.
- Width: the company have 5 lines for makeup, only 2 for fragrances (men/women) and
several range for skin care
- Length: the offer is very length and include more than 50 different kind of product (for
example, only for makeup, there is more than 10 different products: lipstick, gloss,
liner, mascara, eye shadow, pencil, brushes, foundation, powder, nail lacquer)
- Depth: The average variant for a product is 10. For example, there are 7 different
mascaras and 12 lipsticks. The only exception is for fragrances, there are few variant:
shower gel, body lotion, after shave care, deodorant and cologne.
- Consistency: there is a real coherence between the various products offered by the
brand. In fact, make-up are broken down for each use (lips, eyes, complexion, nails)
but the range is still quite traditional for perfume (all perfumers offer cologne, showers
gels and deodorants and declined the basic perfume), there is no differentiation offer
for the fragrances.
14
UK website of YSL Beauty : http://www.yslbeauty.co.uk/
LXRY642B – Marketing analysis of a luxury brand IUM
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Make up
There are several lines of make up: complexion, lips, nails and eyes. According to this
portfolio, we can see that it the complexion and the lips that are the most expended lines.
Fragrance
We can see that YSL propose more fragrance to woman (more than 10 items) than to men
(only 8 fragrances). Women bestsellers are: Opium, Manifesto and Paris. For men it is: La
nuit de L’Homme, Opium pour homme and L’Homme.
Skincare
We have to notice that YSL skincare targeting only woman. In their portfolio, they do not
have product for men. The colors of the line are very pure: purple, white or gold (to
accentuate the luxury side of the product).
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3.5 Pricing strategy
Makeup
Complexion Lips Nails Eyes
Product Average
price Product
Average
price Product
Average
price Product
Average
price
Foundation 45 € Lipstick 30 € Nail lacquer 21 € Mascara 28,75 €
Highlighters 30 € Gloss 25 € Shadow 50 €
Powder 45 € Vernis 29 € Liner 30,50 €
Blush 35 € Contour 21,25 € Eyebrow 20,30 €
BB Cream 45 €
Perfume
Woman
Product Price Content
Manifesto eau de parfum 100 € 90 ml
Opium eau de parfum 60,40 € 30 ml
Opium eau de toilette 51 € 30 ml
Opium collector 95 € 50 ml
Paris eau de parfum 114,05 € 125 ml
Paris eau de toilette 77 € 75 ml
Parisienne eau de parfum 98,60 € 90 ml
Parisienne eau de toilette 63,10 € 50 ml
Rive gauche eau de toilette 65,30 € 50 ml
Elle eau de parfum 78,50 € 50 ml
Elle eau de toilette 63,30 € 50 ml
Cinéma eau de parfum 58,25 € 35 ml
Babydoll eau de toilette 64 € 50 ml
Belle d’Opium eau de parfum 75,85 € 50 ml
Saharienne eau de toilette 50,90 € 50 ml
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Men
Product Price Content
La nuit de l’Homme eau de toilette 48 € 40 ml
La nuit de l’Homme the perfume 67 € 60 ml
L’Homme libre eau de toilette 47 € 40 ml
L’Homme libre prestige edition 112 € 200 ml
L’Homme eau de toilette 78 € 100 ml
Kouros eau de toilette 53,70 € 50 ml
Body Kouros eau de toilette 78 € 100 ml
Opium for men eau de parfum 66,95 € 50 ml
Opium for men eau de toilette 53,70 € 50 ml
Skin care lines
Skin care
Product Price Content
Forever light creator cream 89 € 50 ml
Forever light creator serum 84,80 € 30 ml
Forever light creator lotion 56 € 200 ml
Forever youth liberator serum in cream 165 € 50 ml
Forever youth liberator mask 62 € 75 ml
Forever youth liberator night cream 91,50 € 50 ml
Forever youth liberator serum 80 € 30 ml
Forever youth liberator cream 57,80 € 30 ml
Forever youth liberator cleaner froth 45 € 150 ml
Top secret BB cream 45 € -
Top secret beauty sleep 58,50 € 40 ml
Top secret cleansing 31,95 € 200 ml
Temps majeur supreme cream 234,30 € 50 ml
Temps majeur cream 234,30 € 50 ml
Temps majeur eyes 107,75 € 15 ml
Temps majeur cleansing balm 60 € 125 ml
Temps majeur nutri cream 234,30 € 50 ml
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We can say that, the makeup lines stay affordable for mass consumption, because the average
of a liner, mascara or lipstick is 30 €, who is only the double of the middle range makeup as
L’Oreal Paris brand.
For the perfumes, we can see that women products are more expensive than men’s products.
We can explain this because the fragrance is a typical women fascination. Indeed, fragrances
are part of the feminine myth. Even if the men market starts to be interesting for luxury
brands, it is not as attractive as that of women, what is why it is less expensive.
For the skin care products, the range is very wide: day and night creams, lotions, serums,
mask, cleaner, cleansing and eyes care. This market is in full expansion which may explain
the different kind of offers from YSL Beauty Company. Some articles are very expensive like
the Temps Majeur line, especially the 50 ml cream sold at 234,30 €. The innovation and the
brand image can explain the very high prices of the skin care lines.
It is important to mention that the brand set up sales strategy for Christmas when they sell a
lot of gift boxes.
For example, Opium Christmas boxe at 71, 50 €, includes:
- Eau de Toilette 50 ml Opium
- Voile Hydrating for skin 50ml
- Shower gel Onctueux 50 ml
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3.6 Distribution strategy
YSL Beauty does not set up a retalization channel, because of the type on industry; few
luxury beauty companies have their own shop. Only Channel opens a “beauty bar” in London.
The cost of this private shop is very high for this kind of product. In fact, the company does
not sell directly to consumers; there is not official YSL beauty store. The company sells
products by the intermediate of professional dealers: perfumers or special stores in cosmetics
as Sephora who offering full service (help, advices, testing of product, samples…). The
products are also distributed in airport, especially in duty free shops that are specialized in
selling luxury beauty product. But YSL beauty set up direct selling program by internet;
consumer can buy online and receive the product directly at home. It permit democratization
of the brand because consumers can by easily without go out of their house. Obviously YSL
Beauty is not for sale on supermarket, indeed, a luxury brand cannot compromise its image by
providing makeup, skin care and perfume in this kind of store.
3.7 Advertising strategy & promotion
The adverstising strategy is any form
of non personal presentation and
promotion of ideas, goods, or services
by an identified sponsor. YSL Beauty
has a luxe oriented advertising
strategy. In every ad, there is the color code of luxury: white,
black and gold, sometime they use red (for sensuality of makeup
and fragrances products) or pink for the young targeting
product. For example, Babydoll mascara is gold with the name
of the product in pink. For the Opium fragrance, the universe of the ad is more dark red and
black with a famous personality, the actress Emily Blunt. For the “Youth liberator” skin care,
the universe of the ad is more pure, with little maked-up woman
with hair pulled back, in order to see the purity of her skin. The
product is very pale pink and the cap is white. We can say that
the diriment universes of these pictures each fit to the target and
the type of product sold; this is not the same universe because it
is different products, even if it the same brand.
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YSL beauty does advertisement in printed magazines (luxurious as Vogue, but general public
too with Glamour for examples) and on billboards in cities. They use celebrities for perfumes
(it is the norm in this industry): Kate Moss for “Parisienne”, the actress Jessica Castaing for
“Manifesto”, Vincent Cassel and Garett Hedlund in 2013 for “La nuit de l’Homme”. For
makeup and skincare the company use in priority billboard and magasins; there is few TV ads
for other products than perfume. The company spread it image and universe by TV ads, for
example the video of “La Nuit de l’Homme” with Vincent Cassel was very successful
because of the unique universe: undaunted, elegant, shady, chic and esthete. Indeed, the video
is in black and white and the classical song “suite espagnole” is playing; the elegant signature
of the brand is shown. In the TV add for “Manifesto”, Jessica Chastain plays the “woman
Manifesto” as imagined by the YSL maison; bold, but with both seduction and emotion.
Furthermore, the company strongly use internet as communication channel. In the official
Youtube channel of the brand, consumers can find “making-off” and additional videos of the
TV add. For example, in 2011, the company has posted the additional video of “La nuit de
l’Homme” with Vincent Cassel. The public can more discover the universe of the brand than
on TV (because TV adds only last 30 second in average). In this additional video, we discover
that the director of this add is the famous Darren Aronofsky. And the brand explains the
universe of the additional video15
: “in this two-minute video Vincent Cassel plays the
seductive confirmed, alongside the actress Marine Vacth, the top models Alyssah Ali and
Eniko Mihalik. From the cozy atmosphere of a classical music concert to more aggressive
sounds a nightclub, "love feeds on coincidences, hazards, prohibitions" ... It hunts its prey at
night Paris with his bipolar personality, as was already the characters in Darren Aronofsky's
previous films Requiem for a Dream and Black Swan”. This kind of additional videos can
help the consumers to better understand the brand and appropriate YSL Beauty’s codes.
For the launching of the new perfume Manifesto, YSL Beauty creates the event in France.
The communication agency BETWIN set up a street marketing operation on September 2014
in Paris. Around the “Fontaine du theatre
Français” (whose water was amethyst; time of the
operation), several releases of purple balloons
occurred (color theme of the campaign). This
communication device has also been made in
Lyon, Marseille, Toulouse and Bordeaux.
15
See the video : http://www.youtube.com/watch?v=g8qahlsHDx0
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3.8 International strategy
The international strategy of YSL Beauty is to locate in countries with strong potential for
cosmetics. Penetrate emerging markets like BRICS and Eastern Europe (where French luxury
brand are very successful, especially for makeup, fragrances and skincare) and maintain its
market share in the countries where the cosmetics market is saturated like Western Europe,
USA and Canada.
4. Final conclusion and recommendations
4.1 SWOT analysis
Strengths Weaknesses
French luxury brand with Heritage
Part of the L’Oreal group (world N°1)
Very innovative brand (thanks to R&D)
Strong brand name
History is very important (the Opium legend,
YSL himself poses naked to promote his first eau
de toilette)
New image: younger image and impressive adds
with famous and powerful people (especially
Kate Moss and Jessica Chastaing)
Strong online presence (website, videos…)
Not enough competitive in skin care (only 5% of
the sales)
Too much link this the creator YSL and with the
Haute couture brand
Old fashion (but they try to give a younger image
to the brand with the launch of Babydoll line)
Opportunities Threats
New emerging markets; mondialization
Standardization of beauty (they can sell their
product everywhere)
Westernization of the world (Chinese women do
surgery of the eyes and Indians women use
products to make a whiter skin)
Men cares more and more about physical (use of
perfume and skin care)
Bio products & eco friendly trends
Economical crisis (mass market suffer from the
crisis and it is a large amount of consumers of the
brand)
Very competitive markets
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4.2 Recommendations
YSL Beauty had a very strong image worldwide because it is a French brand closely link to
Haute couture. The company is very innovative (lunching of the “vernis à levres”) and use lot
of international celebrities to promote perfumes. More, the cosmetic market is growing very
positively due to emerging markets that are not saturated but in expand. But, because of the
extreme rivalry of the market, the company should differentiate from competitors. In this way,
the brand can become in new markets “THE French luxury cosmetic company”. Set up N°1
positioning include for this company : “best quality”; “best innovation”; “best styling” and
“best value”. To do that, the company has to work along 5 different dimensions:
- Product: continue to invest in R&D to have the most innovative products, in order to
maintain this competitive advantage
- Services: set up services with the purchase (online advices or free samples)
- Personnel: open their own store and train the personnel, have a good relationship with
customers (effectiveness of the staff in terms of knowledge concerning the products
and the luxury technical of sale)
- Channel: have their own channel of distribution (own shop, online) but continue to sell
in cosmetics department store and duty free
- Image: continue to use the media to create the YSL legend, with their own atmosphere
for each product.
YSL Beauty can open their own store and set up “corporate retailing”, as Chanel’s beauty bar
in a very luxurious place in order to consolidate the good image of the brand and to
differentiate from competitors who have the same distribution channel (perfumeries and
online). Even if the price will be consequent (no economies of scale, and rent of the luxurious
place), the company will gain wider brand recognition and enjoy a better image in term of
luxury products.
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5. References (Harvard References)
Chanel beauty boutique [online] available from
<http://popupstore.chanel.com/coventgarden/flash/index.html>> [October 24, 2013]
Collomp F. (2010) « L'Oréal veut doubler la taille d'YSL Beauté en dix ans » Le Figaro
[online] available from <<http://www.lefigaro.fr/societes/2010/09/22/04015-
20100922ARTFIG00693-l-oreal-veut-doubler-la-taille-d-ysl-beaute-en-dix-ans.php>>
[November 12, 2013]
Guerlain (2013) [online] available from <<http://www.guerlain.com/fr/fr-fr/parfums/parfums-
pour-femmes/shalimar.html>> [October 24, 2013]
Guerlain, Shalimar advertisement (2013) The Legend of Shalimar film [online] available from
<<http://www.youtube.com/watch?v=vL6XJw8Oe5M>> [October 24, 2013]
L’Oreal Group (2009) Key data 2008 [online] available from <<http://www.loreal-
finance.mobi/_docs/rapport/2008/fr/chiffresCles_resume.htm>> [November 12, 2013]
L’Oreal Group (2013) Activity Report 2012 [online] available from <<http://www.loreal-
finance.com/_docs/pdf/rapport-annuel/2012/LOREAL_Rapport-Activite-2012_FR.pdf>>
[November 12, 2013]
Maudieu M. (2013) « Yves Saint Laurent sans Yves Saint Laurent ». Stratégies Magazine
n°1504 [online] dated 06/05/2008 available from :
<http://www.strategies.fr/actualites/marques/r48771W/yves-saint-laurent-sans-yves-saint-
laurent.html> [October 24, 2013]
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Olivier, J. Marketing Chine. [02 September 2013] available from <http://www.marketing-
chine.com/analyse-marketing/le-marche-des-parfums-en-plein-essor-en-chine> [October 24,
2013]
Research and Markets (2013) Consumer and Innovation Trends in Fragrances. Thursday July
25, 2013 online at 7:13am available from: <<
http://www.reuters.com/article/2013/07/25/research-and-markets-
idUSnBw255659a+100+BSW20130725>> [October 24, 2013]
Sleever International (N.D) Perfume: a mythical but mature market [online] available from
<<http://www.sleever.com/fr/trends/solution/parfums-un-marche-mythique-mais-mature>>
[November 17, 2013]
Sleever International (N.D) Skin care [online] available from
<http://www.sleever.com/fr/trends/solution/soins-de-la-peau>> [November 17, 2013]
UK website of YSL Beauty [online] available from <<http://www.yslbeauty.co.uk/>>
[October 24, 2013]
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6. Appendices
Appendice 1: French article from the financial report of L’Oréal in 2012
Appendice 2: Infography from Le Figaro concerning the beauty market in 2011
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Appendice 3: overall perfumes of competitors of YSL Beauty
Guerlain
Women Men
Après l’ondée Guerlain Homme
Aqua allegora Habit rouge
Chamade Heritage
Champs Elysées L’instant de Guerlain pour Hommes
Chant d’aromes Mouchoir de monsieur
Idylle Vetiver
Insolence
Jardins de bagatelle
Jicky
L’heure bleue
L’instant de Guerlain
L’instant magic
La petite robe noire
Mitsuko
Nahema
Samsara
Shalimar
Vol de nuit
Dior
Women Men
J’adore Dior Homme
Les escalles de Dior Eau sauvage
Poison Fahrenheit
Miss Dior Higher
Dior addict Jules
Dune Dune pour Homme
Dolce vita
Les creations de monsieur Dior