Dim Report l'Oreal

8/9/2019 Dim Report l'Oreal

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Direct and Interactive Marketing Management

Coursework: Recommendations Report

Word Count: 3,500 words

Executive Summary


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LOreal Skin Care Revitalift

LOreal is one of the biggest companies in the beauty industry. It was founded in 1909

and soon it became a worldwide famous company which now comprises such well-

known brands as arnier! "ielhs! #edken! Lanc$me.

%his report describes the direct marketing campaign for the anti-aging skin care

collection #e&iatlift proposed by 'I(a) agency.

In order to promote #e&italift collection! direct marketing campaign strategy will

comprise two tactics* ac+uisition aimed at gaining new customers and their retention.

'irect mail! direct response ad&ertising! which comprises billboards throughout the

," and four magaines which are most popular among the target audience! e-

newsletters will be used for ac+uiring new customers through fi&e step approach.

Loyalty scheme and #egular customer updates through website and /acebook page

will be used as part of retention tactic.

ccording to the estimations made by 'I(a) agency this direct marketing campaign

will generate 23!456!000 of re&enue and the #OI will constitute 1*7.6.

Table of Content

8)ecuti&e ummary.......................................................................................................4

%able of :ontent.............................................................................................................6

1. 'irect (arketing trategy......................................................................................;

1.1 Ob

4.1:reati&e ?rief........................................................................................................>

4.4 %actics..................................................................................................................5

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(edia ,sed............................................................................................................5

6. c+uisition =rogramme /lowchart......................................................................16

c+uisition Ob


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%igure: 1Product Life Cycle.

ource:Mintel

t this point the fundamental marketing communication ob


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1.3 egmentation and &argeting

%he target group for LOreal #e&italift includes females aged from ;7 years old and

abo&e! belonging to social classes ?! :1! :4. ccording to the ," Fational tatistics

data! this particular group composes large number in the ," population today.

1./. ositioning tatement

/or modern energetic ambitious women who want to look good and attracti&e at all

times. LOreal #e&italift is the number one multi-action inno&ati&e collection of

products which help to slow down the process of aging. ,nlike other skin care

programmes! #e&italift targets 10 signs of ageing in one which makes it the most

effecti&e anti-aging cosmetic product.

1.5 ositioning Matri+

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%igure :%he ?rand =ositioning* LOreal #e&italift anti-ageing Line &ersus competitors.

ource* own work

ccording to the graph abo&e LOreal #e&italift is percei&ed as a high +uality

collection with reasonable prices compared to other anti-aging products in the same

market. Olay has a slightly lower price but it has worse standard! whereas such

premium +uality lines as :larins! Lancome and 8stee Lauder are much more

e)penci&e. It gi&es LOreal a product ad&antage o&er its competitors.

. Campaign

.1Creative rie'

rand

roduct

LGOrHal roup

kin :are #e&italift

rand 2ssence :aring! re


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ow do we want t*e

target to 'ee( a#out t*e

product a'ter t*e

campaign4

It is necessary to create the image for #e&italift

products as inno&ati&e and being able to slow down

aging! thus! making #e&italift an alternati&e to plastic

surgery.

#e&italift collection should become J/irst in (ind

&ariant when it comes to decision making process.Komen should be informed that being more affordable

#e&italift collection is of as high +uality as more

e)pensi&e competing products.

Message oints6Reason

W*!

#e&italift collection consists of 13 products for different

types of skin which

repair deep-set wrinkles

ha&e double lifting effect

pre&ent new wrinkles

nourishe skin

Mandatories LGOrHal slogan ?ecause were worth itM

Media Outline Komen magaines

8-newsletters

OOC

ocial media

'irect mail

&iming eptember 4016 E ugust 401;

udget 24!000!000

&a#(e 1: Creative Brief.

ource: own work

. &actics

%he marketing strategy of the campaign will include both ac+uisition and retention

tactics aiming to gain new customers and keep e)isting ones. %he main message

which must be con&eyed throughout the campaign is that inno&ati&e #e&italift

collection may ser&e as an alternati&e to plastic surgery.

Media sed

irect Mail

'irect mail will be sent out using rented list! which will enable to communicate with

the right target group. It is e)pected to get 930 responses out of 19!400 mails sent.

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Fewsletters informing about #e&italift promotions in different retailer stores and also

samples of products will be sent through mail system once in 4 weeks.

E!newsletter

,sing rented list for new customers newsletters will be e-mailed weekly. %hey will

inform about web-site updates! new articles and &ideos uploaded there and also gi&e a

couple of beauty ad&ices for women aged o&er ;7. %his campaign aims to get 10

responses out of 7!000 e-mails sent.

Out o" #ome

Outdoor media works effecti&ely due to the fact that a customer comes across the

same message fre+uently. In order to reach wider audience 1!700 #e&italift billboards

will be placed in London and other big cities of the ,"* (anchester! Leeds!

?irmingham! heffield and 8dinburg. %he campaign will last for one month.

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ic. 1:Direct Mail newsletter and sample of Revitalift cream


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ic. : Outdoor advertisin

t the bottom of e&ery billboard LOreal web-site address will be gi&en in bold. %he

nearby message will in&ite customers to &isit the web-site and register there.

Maga$ines

ince press is the medium which enables &ery precise targeting! three magaines

which are most popular among women aged o&er ;7 belonging to ?! :1 and :4 social

classes ha&e been chosen for direct response ad&ertising campaign. %hese are monthly

glossy magaines Komen B Come! unday %ime tyle and ood Cousekeeping!

%atler.

#e&italift collection will be ad&ertised in these magaines. %he ,#L of LOreal

relaunched web-site will be placed in the noticeable place. ,nderneath there will be a

message in&iting customers to register on the web-site and


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%hey reflect target audience lifestyle

Cigh co&erage among the target audience

Cigh circulation figures in the ,"

Cigh recognition among the fashion conscious consumers

ic. 3:Maa!ines

&it(e 7 8 2

Circu(ation

Readers*ip

9000;

Cost per page

9


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indi&iduals

who ha&e

la&ish lifestyle.

&erage house

hold income*2144 >;3

Woman 8

ome137!7>7 ;36 46!900

:oncentrated

in the ?! :1!

:4 67-37

demographic

group

&*e unda!

&ime t!(e57!377 740 10!700

mart!

sophisticated

and intelligent

women?!:1!:4

image

conscious

women aged

;7.

&a#(e: "otal Readers#ips.

ource:Mediatel$ %&'%.

d&erts will be published in four issues of each magaine on the second step of the

campaign sending out the message and in four issues on the fourth step resending

the message.

Social Media

/acebook fun page will be created in order to announce special offers! new products!

and e&ents. dditionally! customers will also be able to share their photos!

information and gi&e ad&ises.

%e&site and Online S'op

It has been decided to re-launch LOreals website! as it has se&eral drawbacks* its

not informati&e enoughN the design is too simple and not attracti&eN colors of the

website are dark and gi&e negati&e impressionN lack of consumer engagement.

%he new website will be designed in bright! warm colors and will ha&e an easy-

understandable na&igation. It will ha&e new features such as ad&ices from e)perts!

different articles about health and beauty! consumer re&iews! price comparison. 8&ery

product will ha&e detailed description. %he website will be updated e&ery 4 days. %he

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most important change will be in di&iding it into different age categories enabling

customers to go straight to their age category and to choose products that suits their

age. dditionally! each category will ha&e articles and ad&ices about beauty. #e&italift

line will be in ;7 category section and will ha&e its own mini &ideos on how to

prolong the youth of the skin and li&e chats with LOreals e)perts where women in

real time could ask them their +uestions. %he only thing which will be necessary for

the customer to get an access to all these useful resources will be register on the web-

site which will enable LOreal to collect customer data.

In addition! there will be created an ecommerce platform on-line shop that will be

rolled into LOreals main website. ?y selling products directly without a retailor

store as a mediator LOreal will get an opportunity to establish closer relationship

with its customers.

#elaunched web-site and on-line shop will pro&ide the customer with e)pert ad&ices!

detailed information and useful &ideos which will help to win customers trust and

loyalty.

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ic. /: (e)*site pae

ource: own work


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fter the first message is sent we will measure the number of new customers.

tep ;* #esend the message to stimulate action

%he same means as on the second step will be used &ia direct mail! direct response

ad&ertising! e-newsletters for those who for some reason missed or ignored the first

message.

tep 7* (easurement

%he effecti&eness of this direct marketing programme will be measured by the number

of newly registered customers and the number of purchases made.

4. Acquisition ro!ramme Sc"e#ule

&a#(e 3:c+uisition =rogram chedule

ource:own work

5. Retention rogramme %(owc*art

Retention "#$ective

%o retain new customers

%o generate 23!456!000 re&enue

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"etention

Cmpign 1:

Loylty Crd

%em+ership crd / L($rel with L($#e

Collecting 0oint

1 points get 1 pounds gift#oucher

1 points get speciltretment

Specil offer

"e#iteift 3e 0rty

Surprise gifts / *ree dili#ery

4et dou+le point whenpurchseing on your +irdy

Cmpign 2:

Customers updted$nline %edi

www'lorel'co'u)

*ce+oo)


%igure: 5Retention proram and Campain -lowc#art

ource:own work

Campaign 1: ?o!a(t! c*eme

?y creating D uni+ue loyalty scheme! it will help to increase satisfaction le&el

of customers! as well as impro&e relationship with them. It can also help to get

&DluDbl insights into buPr bha&iQur and to collect customer data. LOreal

loyalty card! which will be called LOreal with LO&eM! will gi&e a sense of

pri&ilege to its members.

1. By becoming a member of LOreal with LOve, customers will

receive !lastic membershi! car"s with the starting amount of

1# !oints on both of them. $he member retains one an" has an

o!tion of giving secon" car" to % frien".4. Kith e&ery purchase customers will get certain number of points

1 !oun" & 1!oint' 1## !oints &1# !oun"s gift voucherto s!en" on the ne(t !urchase or 1#) "iscount of the

ne(t !urchase.*. $here will also be s!ecial gifts an" sur!rises for LOreal with

LOve members, such as gifts for +hristmas an" Mothers "ay.. -evitalift $ea arty

LOreal with LO&eM will create a special e&ent for the most loyal ;7

members. It will be an informal gathering in the format of tea party.

In this e&ent women can socialie! share their e)perience with LOreal!

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gi&e their opinion on products! telling what they want to get in the

future from LOreal! particularly in the category ;7.

7. nother great opportunity for members to recei&e an e)ceptional benefit is to

collect 1!000 points and to get a special treatment in one of LOreals salons in

London. It can be a makeup session! a blow dry! or a manicureApedicure.

3.

3.

3.

3.

3.

3.

3.

3.

3.

On their ?irthdays customers will get double points for their purchases.

ic. 5:"#e eample of t#e loyalty card of LOreal wit# LOve.

ource:own work

Campaign : Customer pdate

"eeping customers updated is &ery important.

Few products and special promotions will be announced through LOreal website and

/acebook. 8&ery registered customer will get link onto web-siteA/acebook update by

e-mail.

ic. @: "#e eample of online media: LOreal -ace)ook.

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ource:own work

$.

Retention

ro!ram

Sc"e#ule

&a#(e /:Retention Proramme /c#edule

ource: own work

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%. &easurement

Res'onse Rate(Conversion Rate) &easure t"e Results

&!pe o' Media Aum#er

o'

contacts

Response

Rate 9);

Conversion

Rate

Cost per

eac* media

c*anne( 9!350 40

"ut o' *ome

?illboards 16!;63 7 1 in 3 4!35> 40

MagaBines

Koman and Come 7!940 6 1 in ; 1!9>6 40

unday %imestyle

1>!>00 6 1 in ; 7!900 40

ood

Cousekeeping

5!745 6 1 in ; 4!5;6 40

%atler 4>!350 6 1 in ; 9!44> 40

Direct Mai( 19!400 7 1 in 3 6!5;0 40

-Aews(etter 7!000 0.4 1 in 3 47!000 40

Compan! We#site 7!000 0.4 1 in 3 47!000 40

&"&? 150,000 31/,150

&a#(e 5: /#ows t#e results of response rate and conversion rates for t#e campain.

ource:own work

"ut o' ome

Outdoor campaign billboards will be measured by eyes on Impression system

8OIs! where results will be gained from different types of data! i.e. sur&ey! blogs!

data analytics and customer re&iews.

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-news(etters

%o measure response rate in this campaign there will be de&eloped ; different types

of mails that will be sent to trial group of customers - 300 people in 7 big cities across

the ," London! (anchester! ?irmingham! Leeds! 8dinburg. %he type of e-mail that

will recei&e higher response and con&ersion rates will be sent to the rest of the target

audience.

rint dvertising

%he response rate to the campaign will be measured by inserting &oucherAflyer with

bar codeAreference number on each of them. Cence! if a customer wants to get a

discount when buying a #e&italift product she will need to register this number

online. %hat is how the e)act number of customers will be measured.

ocia( Media6 "n(ine

ocial media will be tracked by the number of fans! likes! comments.

/acebook* number of likes of the LOreal #e&italift page.

/ebsite0 number of visitors, comments in the blog an"

customers fee"bacs.

*. Evaluation8&aluation process will be in the end of the campaign. %he final campaign results will

be e&aluated and compared with initial ob


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+. ,u#!ets - bottom line forecast results

Direct

Marketing

&oo(s

Description iBe %re>uenc! rice

9


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Estimate# rot an# RO/

ccording to the estimations of the e)penditure and re&enue of the campaign!

27!935!570 of profit will be generated.

#elying on all these calculations the campaigns return on in&estment has been

estimated. It shows how much the company will get in return for the in&estment it

made. It will allow the company to decide whether it worth to in&est in the campaign

or not.

%he #OI from the direct marketing campaign for LOreal #e&italift will be 1*7.6.

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Conclusion

%he &alue of the ," beauty industry is o&er 217bn. ,nlike many other industries it

was not hea&ily affected by the economic crisis because of womens obsessionM with

keeping their beauty.

#e&italift is a new skin care collection for women aged o&er ;7. Fow it is on the

introductory stage of its life cycle! therefore it needs to be widely promoted. In order

to get higher results and implement more precise targeting a number of direct

marketing techni+ues must be employed.

/or customer ac+uisition direct mail! e-newsletters! direct response ad&ertising and e-

commerce will be used. %hese tools will enable to attract new customers. /or the

purpose of retaining customers loyalty scheme! which will ha&e se&eral le&els! will be

worked out. (embers of the LOreal with LO&eM loyalty scheme will not only get

different pries and discounts but will also get an opportunity to participate in LOreal

special e&ents for those who use #e&italift.

%his direct marketing campaign is estimated to generate 23!456!000 of re&enue which

makes it a good in&estment for LOreal.

i#(iograp*!

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