Coursework 1 - Ysl Beauty

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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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



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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



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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



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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



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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



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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

http://plus.lefigaro.fr/page/florentin-collomp

http://www.strategies.fr/actualites/marques/r48771W/yves-saint-laurent-sans-yves-saint-laurent.html


http://www.lefigaro.fr/societes/2010/09/22/04015-20100922ARTFIG00693-l-oreal-veut-doubler-la-taille-d-ysl-beaute-en-dix-ans.php


http://www.loreal-finance.com/_docs/pdf/rapport-annuel/2012/LOREAL_Rapport-Activite-2012_FR.pdf


http://www.loreal-finance.mobi/_docs/rapport/2008/fr/chiffresCles_resume.htm




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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



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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



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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



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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).



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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.

http://fr.wikipedia.org/wiki/Est%C3%A9e_Lauder_%28entreprise%29

http://fr.wikipedia.org/wiki/Tommy_Hilfiger

http://fr.wikipedia.org/wiki/Inter_Parfums

http://fr.wikipedia.org/wiki/L%27Or%C3%A9al

http://fr.wikipedia.org/wiki/LVMH

http://fr.wikipedia.org/wiki/Guerlain

http://fr.wikipedia.org/wiki/Benefit_Cosmetics

http://fr.wikipedia.org/wiki/Procter_%26_Gamble

http://fr.wikipedia.org/wiki/Puig_%28Parfums%29

http://fr.wikipedia.org/wiki/Valentino_Fashion_Group



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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



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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



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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/



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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


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


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]

http://popupstore.chanel.com/coventgarden/flash/index.html



http://www.youtube.com/watch?v=vL6XJw8Oe5M









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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]

http://www.marketing-chine.com/analyse-marketing/le-marche-des-parfums-en-plein-essor-en-chine

http://www.marketing-chine.com/analyse-marketing/le-marche-des-parfums-en-plein-essor-en-chine

http://www.reuters.com/article/2013/07/25/research-and-markets-idUSnBw255659a+100+BSW20130725

http://www.reuters.com/article/2013/07/25/research-and-markets-idUSnBw255659a+100+BSW20130725

http://www.sleever.com/fr/trends/solution/parfums-un-marche-mythique-mais-mature

http://www.sleever.com/fr/trends/solution/soins-de-la-peau

http://www.yslbeauty.co.uk/



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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

Coursework 1 - Ysl Beauty

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Transcript of Coursework 1 - Ysl Beauty