Table of Contents - Assignment Studio · for L’Oreal is from the market leader Unilever and P&G...
Transcript of Table of Contents - Assignment Studio · for L’Oreal is from the market leader Unilever and P&G...
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Table of Contents
Stage 1: Analysis of L’Oreal Skin Care Brand ............................................................................... 3
Vietnam Skin Care Market overview ............................................................................................. 3
L’Oreal Paris Vietnam ................................................................................................................ 4
External Environment analysis ....................................................................................................... 4
Microenvironment- PESTLE Analysis ....................................................................................... 4
Competitive Landscape ............................................................................................................... 9
Internal Environment analysis ...................................................................................................... 11
L’Oreal Portfolio ....................................................................................................................... 11
Product portfolio ....................................................................................................................... 12
SWOT analysis ......................................................................................................................... 13
Analysis of Consumer Behaviour ................................................................................................. 14
Segmentation............................................................................................................................. 14
Target market ............................................................................................................................ 15
Consumer decision making ....................................................................................................... 15
Market trends and response to customer demand ......................................................................... 17
Consumer Value Drivers........................................................................................................... 17
Impact of Consumers Life styles and cultural factors .............................................................. 17
Brand Association and Loyalty ................................................................................................. 18
Brand Positioning.......................................................................................................................... 18
Perceptual map of Price and Brand association ........................................................................ 19
Stage 2: Product development & IMC Plan .................................................................................. 20
IMC Objectives, strategy and roles ............................................................................................... 20
Specific Objectives ................................................................................................................... 20
Buyer Readiness Matrix ............................................................................................................ 21
Innovation of proposed product .................................................................................................... 22
Unique Selling Proposition (USP) ............................................................................................ 22
Proposed Marketing Mix .......................................................................................................... 22
Proposed product .................................................................................................................. 22
Proposed pricing: .................................................................................................................. 25
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Proposed distribution: ........................................................................................................... 26
Proposed Promotion (Media Strategy).................................................................................. 26
Creative Strategy ........................................................................................................................... 26
Creative brief ................................................................................................................................ 27
Originality of the campaign .......................................................................................................... 30
Proposed Ambassador ............................................................................................................... 31
Coherence with the brand ............................................................................................................. 31
Product portfolio balance .......................................................................................................... 31
Local market strategy ................................................................................................................ 33
International scope of the project .............................................................................................. 33
Media Strategy .............................................................................................................................. 33
Broadcast media ........................................................................................................................ 33
Print media ................................................................................................................................ 34
Out-of-home advertising ........................................................................................................... 34
Social media .............................................................................................................................. 35
Event marketing and sponsorship ............................................................................................. 36
Media Schedule and budget allocation ......................................................................................... 38
Monitoring & Evaluation .............................................................................................................. 42
References ................................................................................................................................. 45
Ken Research (2014), Asia-Pacific Cosmeceuticals Industry, Accessed from
http://www.news.kenresearch.com/post/77795080666/asia-pacific-cosmeceuticals-industry
............................................................................................................................................... 45
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Stage 1: Analysis of L’Oreal Skin Care Brand
Vietnam Skin Care Market overview
Vietnam cosmetic market is regarded as a potential market amongst Asian countries. The
increase in cosmetic consumption I last four years is reported as average of 7 percent wit
per consumer expense of $3 per annum on cosmetic products (Euromonitor 2014).
Hence, this steady growth has attracted the global cosmetics and skin care brands like
Unilever, P & G, L’Oreal, and Johnson & Johnson to Vietnam and generated a
competitive landscape. Chemical Cosmetic Association Vietnam reported that over 430
leading local and foreign cosmetic companies are operated in the country, in which
around 90 percent are known foreign brands (NDHMoney 2012). Furthermore, Vietnam
consumers have shown an increase in purchasing power after gaining economic
prosperity due to increase in trade in the region. Vietnamese consumers spent
approximately 45.34 billion USD in 2012 on consumer goods shown a rise of 20.8
percent as compared to the year 2011 (People Army's Newspaper 2012). This growth has
encourage youth and young professionals to invest more in personal grooming products
with more expandable income and can afford high quality international brands (Pitman
2012). As Vietnam is relatively young country with more than 45% youth population is
attractive for international brands like Unilever, and L’Oreal to penetrate in this small
market in last decade with an offensive strategy.
Though, US brands like L’Oreal are well penetrated in Vietnam cosmetic market but the
consumers are still not familiar with US brands as compared to the oriental Japanese
brand Shisiedo and UK based brands of Unilever. Yet the brands of L’Oreal like
Maybelline, Body Shop, and Garnier have performed well in the market as Vietnamese
consumers are still not exposed to the premium end cosmetics brands like Estee Lauder,
Guess, and M.A.C. Also, the ranking of US brands like Revlon and L’Oreal is still not
clear to Vietnamese consumers. Therefore, a clear and visionary marketing
communication strategy is required for the case company L’Oreal Paris in Vietnam.
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L’Oreal Paris Vietnam
L'Oreal Paris operated in more than 130 countries globally with a broad focus on
products categories of hair care/ styling, cosmetics, and skincare. L’Oreal Paris is the
second largest personal care and hair care products manufacturer across the globe, and
popular in Vietnam for good quality brands with reasonable price in cosmetics market of
Vietnam. In skin care, L’Oreal is the second largest market share holder after Unilever in
Vietnam and growing at a faster rate due to heavy expenditure of R&D and promotion.
The cutting edge technology of skin revitalizing creams brands of Youth Code and Hydra
Fresh, and whitening solutions of White Perfect™ has enabled fast penetration in this
market. Furthermore, Market Line (2014) concluded that the company is engaged in
manufacturing and marketing of the skin care products with the well known brands
Maybelline and Garnier, Lancôme, and NewYork. This growth of skin care is a global
phenomenon as Euromonitor (2014) reported that in the period of 2011 till 2015, the
global skin care brands market grew at about 4.4% due to the increase in ageing
population and more concern towards the use of organic and natural ingredients in skin
care products.
External Environment analysis
Microenvironment- PESTLE Analysis
Political
Vietnam has followed a system of mixed economy with still an important role of
government in regulating the state affairs. The market economy is still not well organized
even after its signing the WTO announcement of free market economy in year 2006
(Pham 2011). The National Party Congress announced the running of free market under
the social orientation. Therefore, a part from the freedom given to the operations of
multinationals, the State Owned Enterprises (SOEs) still have the prominent role in
market controlling and policy formation.
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Economic
Vietnam cosmetics industry’s annual growth rate in the period o 2007 till 2012 was
around 5.35 with 90% share of foreign cosmetic brands in the country. These
international brands are concentrated more in urban areas and cosmopolitan centers of Ho
Chi Minh City (Ken Research 2014). The economic growth of Vietnam was also stable at
around 7% in last decade. The local business has been facing the financial and credit
management challenges as compared to their foreign counterparts. Also, Vietnam
business are facing high inflation rates of 9% to 11%. In cosmetics market, US brands
share is around 10% as compared to EU share of 23% and Japan share of 17%. The
following comparison shows 11% share of cosmetic products in Vietnam GDP (Mintel
2014)
Source: Mintel (2014)
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Social
Around 46% population in Vietnam is young and in working age, with one million new
workers entered every year in labour market. On the other hand, the productivity level of
work forces are even lesser that that of ASEAN countries. The positive sign is the
inclusion of Vietnam in top five countries Happy Planet Index (HPI) of year 2009, that
shows that Vietnamese are fun loving, social, and optimistic nation. The social life is
peaceful due to stable government and economic growth in the country (Vietnam General
Statistic Office 2012).
Technology
The technology is advanced in urban areas of Vietnam with wide exposure of population
to telecommunication, but remote areas and villages are still lacking latest technology.
Therefore, the technology revolution still needs some more time to create advancement in
landscape of media and communication. The availability of internet is widely accessible
in urban areas at normal price. Counterfeit products are also widely available in
cosmetics market acting as a threat to foreign brands.
Legal
The laws available in Vietnam are Investment and Enterprise Law, with provision of
global agreements like WTO and regional agreements like ASEAN and APEC. Though,
the legal structure is strong, but implementation of these laws and agreements is still
challenging in the country. The high rate of corruption and poor quality of human
resources are some major obstacles.
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Environmental
High natural disaster risks and very long coastal border of around 2500 km create more
serious environmental concerns in Vietnam. Rapid climate change, and rises in sea levels
are needed to be considered in planning of organizations for manufacturing and
marketing of products. People are also more concerned about the eco friendly approaches
of foreign and local brands.
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Matrix of PESTLE Analysis
Factors Indicators Opportunity /
Threat
Political Stable government.
Less political Risk
Favourable policies multinationals
O/T
O
O
Economic Increasing GDP
Large skin care sector
intense competition
O
O
T
Social Youth market tends to cosmopolitan
lifestyle
High international cosmetic products
demand
High loyalty to international cosmetic
brands.
Increased personal care and social
activeness
Internet savvy young population
O
O
O
O
O/T
Technology Internet is less accessible.
More international brands in the urban
areas.
Revolution in digital media
T
O/T
O
Legal
Less effective intellectual property rights.
Less measures for problem of counterfeits.
More eco-friendly and natural products
demand
T
T
O
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In conclusion, L’Oreal has great opportunities in stable political and economic growth
environment of Vietnam. Also, environmental and legal challenges counter the growth
potential of the company in this new social and cultural environment.
Competitive Landscape
According to NDH Money (2012), Chemical Cosmetic Association reported that the
major brands in Vietnam’s cosmetic market for the urban areas are Shiseido, Ponds,
L’Oreal, Estee Lauder, Maybelline, Olay, The Body Shop, and Oriflames. The
production bases of Olay, Shiseido, and Pond’s are also available in Vietnam with
L’Oreal is going to start its production base in near future. Saigon, My Hao and Thorakao
are some of the leading local cosmetics brands in Vietnam Market. The major challenge
for L’Oreal is from the market leader Unilever and P&G as strongest and long standing
players.
Unilever
Dove, Ponds,
Vaseline Intensive
Care
Max Factor, Olay
Integrate
Revital
Branding Global brand act as
Unilever Vietnam,
less lines in skin
care product
include Ponds,
Dove, and
Vaseline Intensive
Global skin care brands of
Olay and Max factor are
managed by P&G
Vietnam. High quality
and innovation focus with
large line of variants in
Olay brand.
Japanese origin global
brand, in top five
international brands in
Vietnam. Skin care
products target is both men
and women with oriental
and innovative skin care
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care the most
prominent. R& D
and product
innovation has
made it the market
leader.
range. The company has
more than ten skin care
brands line with Shiseido
Ultimate is the latest
inclusion. The global net
sales are around $10 to
$50 billion yen per annum
for these brands.
Target
market
Women of age
group 20 years and
above. Mass
consumer market
and focus on
middle and upper
middle class.
Female target market of
age group 20 years till 65
years. Income range from
middle to high income
families and individuals.
Professional and skin
conscious women are
major target.
Target men and women,
broad product range
available for youth,
middle, and elderly age
groups. Low to middle
income groups target.
Product Large product line
from face washes
to revitalizing skin
creams and lotions.
Premium line of products,
with R&D based skin care
solutions in Olay. Anti-
Ageing and whitening
solutions are available.
Large product line ranges
from routine moisturizers,
uplift creams, and
revitalizing solutions.
Price range Middle to high
price
Middle to high price Low to middle prices
Distributio
n
- super stores and
Retail markets
- Beauty spots and
parlors
- Online and
- Convenience stores
- super stores and Retail
markets
- Beauty spots and parlors
- Online and franchised
- - Convenience stores
- super stores and Retail
markets
- Beauty spots and parlors
- Online and franchised
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franchised stores stores stores
Promotion
&
Communic
ation
TVC, Website,
digital media,
newspapers,
magazines, ,
billboards, Events
sponsorships
TVC, Website, digital
media, newspapers,
magazines, , billboards,
Events sponsorships
TVC, Website, digital
media, newspapers,
magazines, , billboards,
Events sponsorships
Internal Environment analysis
L’Oreal Portfolio
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Product portfolio
Current Performance
Skin care Skin care supplements and solutions are available to all age groups for males and
females. The cream jars, bottles, and tubes are available in the sizes vary from
30 ml to 200 ml.
Product White Perfect
Hydra Fresh
Men Expert
Youth Code
Price Low, middle and high price range is available in different variants.
Placement Supermarket, convenience retail stores and online sales from the website.
Promotion Less use of TV and print media, except the women lifestyle and beauty
magazines, and point of sales displays. More billboard and digital campaigns
Less promotion and TV advertising, billboard or event campaign, however, there
are some print ad in women magazine.
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SWOT analysis
Strengths Weaknesses
1. World recognized brand portfolio of
Body Shop, Garnier, Maybelline.
2. Capabilities are focused on
cosmetology and dermatology in
skin care range.
3. Strong capabilities of research and
development.
4. Diversified presence in over 130
countries across five continents
5. heavy advertising expenditure over
the years
1. L’Oreal’s long term revenue growth
has been low, A weak performance
in Far East strategic geographic
market has undermines confidence
of investor
2. decline in competitiveness and lack
of revenue driving products
3. losing market share in the parts of
Vietnam to Unilever in hair care and
skincare market
Opportunities Threats
1. rise for cosmetics companies due to
increasing popularity of beauty
contests and increasing disposable
incomes
2. Demand for safer and more eco-
friendly natural personal care
products is rising
3. Growing beauty consciousness
Investment in emerging markets.
4. Increasing use of social networking.
1. Intense competition due to trend of
Acquisition and alliances:
2. Growing Low quality counterfeits
also reduce consumer confidence
3. Growing popularity of cosmetic
surgery and hair treatments
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Analysis of Consumer Behaviour
Segmentation
The segmentation is derived on the four aspects as shown below:
Table 3: Segmentation profile of Vietnam Consumers
Dimensions of
Segmentation
Segmentation
variable
Details
Geographic
Region Vietnam
Density Cosmopolitan, and Urban
Climate tropical region
Demographic Age 15- 35 years
Gender Male plus female
Occupation Professional
Life Cycle Individuals and family
Race Universal appeal for all ethnicities
Income Middle and high income
Psychographic
Personality Personality conscious, variety seekers, personal
groomers, personal value high orientation.
Lifestyle Independent and active, extrovert, professional
and personal excellence, self actualization
Brand Loyalty strong loyalty
Behavioral
Usage behaviour regular to occasional
Perceptive Benefits -Established international brand
- fresh, regenerated, and moisture skin
-Whitening solutions
-support cosmopolitan life style
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Target market
In skin care category of Vietnam cosmetics market, the segments of youth and young
professional males and females are identified. These segments are comprised of both
individuals and family oriented, in the age group of 15-35 years, and belongs to the social
active and personality sensitive consumers groups. Due to the limited personal income
sources in this age group, especially for Youth in the age bracket of 15-30 years, face the
challenge of high prices of L’Oreal skin care products. Therefore, the targeted brand’
Youth Code’ for this segment should focus on affordable prices; otherwise the target
market will not be penetrated easily in Vietnam.
Type of Customers Consumer Profile
Professional males and
females
Age group 20-35
junior & middle level executive, public figures, celebrities
Socialization and personal grooming needs
youth Age 15-30
Middle and high socio-economic income level
High personal care, social image sensitive
Internet savvy, social media users
This target market can be accessed by focusing on the advertising in the appropriate
media. Social media is influencing in this age category due to this internet savvy
generation who spend less time on TV and on print media as compared to hours spending
on internet. Due to high mobility in cosmopolitan life style, billboards and event
sponsorships will also be viable promotion choices.
Consumer decision making
Consumer decision making process for skin care process is based on the influence of
advertising, word of mouth, social needs, and personal level of personality consciousness.
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Decision making process Influencing factors Implications to L’Oreal
Need Recognition Skin care needs, problem
recognition, personal
awareness, information
sources,
Maslow’s hierarchy Need
level affect want to buy
suitable product - Highly
concern of personal image
- offer products for every
segment of target market
from men (Extra Men) to
youth (Youth club)
- proper media selection
for targeted consume
groups, Advertising
campaign stimulate their
need
Information search - Past experience, digital
media support, printed
resources, reference
groups
- Advertising through
print , TVC and digital
media
.
Alternatives Evaluation - Past experience,
Financial constraints,
lifestyle and social
activeness
- Advertising through
print , TVC and digital
media
- product and price
alternatives
Purchase decision - attitude and situational
factors
- Price, product,
Promotion, discount, and
distribution channel
Post-Purchase - product response,
consumer satisfaction,
repurchase intentions
- Customer engagement
and retention
-Customer care and long
term relationship
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Market trends and response to customer demand
According to TNS Vietnam survey (2012) the latest Vietnamese consumer trends
industry are inclined towards use of telecommunication, entertainment savvy, and high-
tech consumer goods. Also, due to increase in global awareness through social media and
internet, the demand of health and skin care products is also raised (ThanhNien News
2013). The consumers demands more eco-friendly and organic skin care products that
comprised on natural ingredients. The tastes of consumers become matured and the
international brands share is around 90% in Vietnamese market due to high concern f
brand image and product quality.
Consumer Value Drivers
The concern for body image and social appreciation are important for Vietnamese
consumers and economic prosperity in recent years have allowed them to utilize skin care
products to save their skin from early ages. The high- end consumers have more
economic liberty to select from the premium foreign brands, but the selected target
market of youth and young professionals are facing the issues of low expandable income
and high demand of personal care products. This target market is also aware of the ageing
problems created for the skin and they want early remedies for future potential issues.
Therefore, a more informative and sensational advertising and promotional campaign is
needed for this target market
Impact of Consumers Life styles and cultural factors
The impact of local culture and consumer lifestyle factors are also important to consider
in evaluating this perception. As Vietnam is rich in natural resources and vegetation
suitable for local recipes of skin care products, therefore, the households have natural
remedies available due to the use of oriental lotions and creams. The global information
exposure and cosmopolitan cities changed demographics have made the local generations
staying away from their cultural norms an values. Also, the busy lifestyles in cities
increase the dependence on readymade skin care solutions offered by the companies like
L’Oreal.
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Brand Association and Loyalty
The popularity of international skin care brands in Vietnam markets is largely because of
consumers perception of high quality and trust associated with these brands. On the other
hand, brand loyalty developed in high-end consumers is due to the price and consistency
association of international brands. High brand loyalty is experienced by prime brands
like Christian Dior and Estee Lauder in this market. On the other hand, the selected target
market of youth and young professionals are fewer brands loyal due to their variety
seeking and price sensitiveness. Hence, the generation of brand association and loyalty in
this segment is an important objective of market9ing communication plan for L’Oreal.
Brand Positioning
The above discussed segmentation strategy and selected target market needs a specific
brand positioning. According to Harrison (2010), brand positioning is the creation of
desired brand image and perception in the minds of consumes. The desired brand position
for skin care brands of L’Oreal in Vietnam market can be expressed by the table below:
Brand Name L’Oreal Vietnam
Product
Category
Personal Grooming and Skin Care
Logo
Skin Care
Packaging cream jars, tubes, and serum bottles
Slogan
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Brand
Personality
Exciting, revitalizing, Fun, and healthy
Brand Image Innovative, Trustworthy, and unique
Stage of
Product Life
Cycle (PLC)
Growth phase in Vietnam Market
Therefore, a competitive strategy is required die to the presence of global leading brands
of Unilever and P&G in this market. L’Oreal can target the its brands of Youth Code,
Expert Men, white perfect, and Hydra fresh for youth and young segment at low price
with high commitment of quality. Promotion of local herbs and other oriental ingredients
will also create a strong brand association of local consumers. The following perceptual
map below show the positioning according to selected variables.
Perceptual map of Price and Brand association
Low Price
High Brand
Association
Low Brand
Association
High Price
Shisiedo
P&G
Unilever
LOREAL
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Stage 2: Product development & IMC Plan
IMC Objectives, strategy and roles
Specific Objectives
To change the current position of L’Oreal in Vietnam market which contributes to around
5% of the skincare market and approximately a half of the leadership brand’s market
share, L’Oreal choose to improve the potential market – focusing on men. Objectives will
be established to meet the SMART criteria (Specific, Measurable, Achievable, Realistic,
and Timely).
Goal: Launching new product for men in order to increase brand awareness and brand’s
market shares and product sales.
Objectives for short-term (6 month): Vietnam is known with the quick development
and quick recession; 6 month is enough to prove the effectiveness of a marketing
communication campaign.
Create the strong discussion on social media (more than 95% of male users, who
are target audience) after launching a social media campaign (by May 2016).
Develop the brand awareness of target audience to 80% from the success of the
campaign (by May 2016).
Reach 14% of target audience having purchase intention after the campaign will
be launched for 3 months.
Objectives for long-term (2 years):
Achieve 95% of target audience being aware of the brand.
Increase the number of people having intention to purchase new products by 30%
Retain 30% number of customers after the first purchase of new products within 3
years.
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Buyer Readiness Matrix
Buyer Readiness Theory is about 6 stages (Awareness, Knowledge, Liking, Preference,
Conviction, and Purchase) that consumers passes before making actual purchase. (Kolter
et al. 2010).
Byer readiness
stage
Advertising objective Proposed IMC
Strategies
Think Awareness This stage strongly relates to the
objective of increasing brand awareness
through launching new campaign of
new products within 3 months.
TVC/Radio
Press Ads
Ambient Ads
Social media
PR
Knowledge This stage is to spread the knowledge to
target audience who may have
awareness of the brand through word-
of-mouth, social media campaign and
events through the integrated marketing
communication campaign.
Website/Social
media
Touch-pints
Press Ads
PR
Feel Liking Utilizing channels and events of social
media and the mass media to support
the campaign of promoting new
products in order to attract target
audience and leave them positive
feelings.
Advertising
Social media
Sale promotion
PRs/Event
Preference Building up strong relationship between
consumers and the brand by the
marketing communication campaign,
and promoting the quality, unique
Loyalty program
Sale promotion
Events/PRs
Social media
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performance and the value of L’Oreal
products.
Do Conviction Using the Word-of-mouth to convince
target audience. Famous users,
specialists, show biz celebrities and net
stars will channels to connect target
audience and the brand that will be able
to convince these customers.
Social
Events
PRs
Purchase Provide consumers positive purchase
experience and persuasive
communication which encourage them
to purchase and repetitive purchase.
Customer service
In-store
experience
After-sale service
PRs
Innovation of proposed product
Unique Selling Proposition (USP)
USP requires the new campaign to have specific benefits which is unique and strong
enough to attract potential customers. L’Oreal will launch new range of products
focusing on the male youth which support to remove acnes, protect from blackheads,
wash away oil and dirt, and hydrate the skin and prolong an anti-shine effect all day.
Proposed Marketing Mix
Proposed product
The new range of products requires the quickly positive effects in performance and
uniquely creative appearance.
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Performance
Natural ingredients will offer consumers to remove acnes in 1 week and protect them
from blackheads. Moreover, keeping using products in the range will make them
confident with a perfect facial appearance for all day and leave them feeling of refreshing
feeling for every time of using the products.
Range of products – Perfect Refresh
Product Detail
Removing Acnes Roll-on Rolling on acnes will leave users feeling
of cooling and it will remove acnes within
1 week. After that users could use others
products to protect skin.
Targeted Spot Roll-on Rolling on fades facial marks. On
application, the icy metal ball brings
instant cooling effect.
Reducing Blackheads Effectively removing blackheads within
several days without irritating or over-
drying. It could be used daily.
Daily Wash Daily Wash will leave users feeling of
refreshing every times of using. It will
help to remove dirt and oil, and perfect
users’ skins after long-term using.
Protective Moisturizer The product will hydrate users’ skins and
prolong anti-shine effect for all day.
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Product appearance
Products and its appearance will be designed to fit with the criteria of male youth which
are professional, beautiful, classical and creative.
Range of products will be separated into 2 combos of products:
Combo of full products of Perfect Refresh: this combo supports people having need of
treating acnes to have perfect skin.
Combo of 2 products of Perfect Refresh (including Daily Wash and Protective
Moisturizer): This combo will help to take care users’ skin and protect them for all day
and leave them feeling of refresh every time of using.
Each combo will be put in a rectangle black box which could be stuck on wall on purpose
of decoration.
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Components Removing
Acnes Roll-on
Targeted
Spot
Roll-on
Reducing
Blackheads
Daily
Wash
Protective
Moisturizer
Shape
Tall cuboid black classic, professional and manly
Size Small Small Medium Big Big
Ingredient Clearly defined on the products
Label Simple with L’Oreal logo, Perfect Refresh, and the name of
product.
Colour Black and white – classical and professional colors.
Proposed pricing:
The Vietnamese consumers tend to believe that products value for money. It means that
the price must be not too high or low in comparison with the skin care products for man
in the market. So the price will be at middle upper class in the market. Paired with the
premium price, the brand will convince users about the value of products with their
professional appearance.
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Proposed distribution:
Retail stores will be the persuasive channels where consumers could put their trust in.
Moreover, salesperson could consult buyers about the products which fit to their needs.
Retail stores will locate in big cities in Vietnam which most potential customers live in.
Online distribution is also supported for consumers with affordable shipping fee.
Proposed Promotion (Media Strategy)
Creative Strategy
The brand positioning statement is important for a brand in explain consumers about
Perfect Refresh brand. Perfect Refresh is the range of product for professional male youth
to help them to have a perfect facial skin with effect of acnes treatment and cleansing
face and perfecting face. It also provides the feeling of refreshing every time of using
washing product. The products will leave no negative consequence due to its natural
ingredients.
By the power of word-of-mouth marketing through strongly focus on social media and
public relation activities, the new campaign will be able to achieve the established
objectives.
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Creative brief
CREATIVE BRIEF Troy & Meshal Agency
DATE Dec 15th 2015 CLIENT L'Oreal Paris BRAND Perfect Refresh
JOB NUMBER MON 019 JOB TITLE Perfect Refresh PROD BUDGET annually $1
million
BACKGROUND
The market share of L’Oreal Paris is only half of the leadership brand in Vietnam. To
gain more market share, L’Oreal choose to develop new products for the potential
market in Vietnam – professional male youth. Perfect Refresh is named for the new
brand which also explain about the products of the brand, removing acnes and
imperfection of facial skin, to protect the facial skin and keep it perfect for all day as
well as bring the feeling of refreshing to users for every time of using products.
CAMPAIGN REQUIREMENTS
To successfully achieve the objectives from clients, an integrated marketing
communication needs to be developed and it requires the following communication
channels:
Social networking sites. Ex: Facebook, YouTube, Instagram and other local
networking sites.
Brand and retail stores with brochures and print/ POS
Sponsorship/ events/ endorsement/ concert
Mass media such as billboard, television program, radio, newspaper
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CUSTOMER INSIGHT:
Group 1: young adults have concerned about acnes in growing stages. They care much
about their appearance with acnes vulgaris which makes them feel less confident to
communicate with others. (from the age of 14- 25)
Group 2: mature people have blackheads or having high concern about their facial
perfection and their image in society and their relationship network. The life of upper-
class people is what they think of. (16- 39)
These groups both live in the big cities and prefer to have high-class and well-
designed products.
COMPETITIVE INSIGHT:
Nivea - Nivea for men, Pond's - Pond's men, Rohto - Oxy products, and Unilever –
Axe are typical products and brand in the market which are mostly dominate the
market targeting on men.
The product of L'Oreal is at the range of premium but not too high, in the affordable
price for the middle class. Its competitors have strong reputation in Vietnam with
large range of advertising.
CLIENT INSIGHT:
L’Oreal Paris is one of famous multi-national company in Vietnam. It is ranked
number 4th in the skincare market. To share their promise to all consumers “you’re
worth it” not only female consumers, new brand Perfect Refresh will bring the
perfection of facial skin to male users. Moreover, the brand commits to bring the
feeling of refresh and long-term effect to consumers without any irritation or negative
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effect by the natural ingredients.
ADVERTISING OBJECTIVES:
Primary objective: create the awareness that L’Oreal Paris Perfect Refresh is reliable
brand with its products’ positive effects
Secondary objective: Make Perfect Refresh become an icon of prestige, charming,
professional and classical youth.
THE SINGLE MINDED PROPOSITION
The effect of Perfect Refresh will firstly be well-known through its professional and
incredible appearance, natural ingredients as well as power of word-of-mouth.
SUBSTANTIATION FOR THE PROPOSITION
The quickly positive effect of products of Perfect Refresh combined with the natural
ingredients causing no irritation or side-effects will be reasons for the sustainable
value of the brand. Moreover, the uniqueness, creative and professional package of
products will lead to the success of brand image and convince consumers about its
high-class position.
DESIRED BRAND IMAGE
Value for money, products for high-class, professional and fashioned image.
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Commitment to bring the perfection to consumers. “Because You’re worth it”
MANDATORY INCLUSIONS
L’Oreal Paris logo
Perfect Refresh logo
Originality of the campaign L’Oreal Paris in Vietnam has no local ambassador as well as less promotion for male.
This leads to the weakness in expanding male market. Consequently, male customers
have low awareness of L’Oreal products. Many audiences only know L’Oreal for its
female cosmetics. Hence, L’Oreal Paris has to increase brand awareness in male
customers through social media, celebrity endorsement and mass media.
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Proposed Ambassador
Johnny Tri Nguyen is a famous actor in series of action films in Vietnam. He is manly,
successful, charming and good-looking that makes him fit to products of Perfect Refresh.
His fame will easily boost the brand awareness in male customers as well as attracting
female buyers who purchase products for their male users.
Coherence with the brand
Product portfolio balance
Brand portfolio management has strong impact on company profitability. The only brand
for men in Vietnam creates the limit on profit for the brand. It is also the opportunity for
L’Oreal to gain more market share and grow its reputation. Moreover, Men Expert was
introduced in supermarkets – BigC, in Vietnam, yet it was removed from shelves after
several months.
32
Because of the limited growth and low brand awareness in market target on male,
L’Oreal products for male must be placed in the stage of introduction of Product Life
Cycle.
Hence, the strategy for the campaign should focus on increasing brand awareness and its
reputation in male consumers.
L'Oreal Vietnam
Make up Haircare Skincare
Women
Youth Code Moisturisers Anti ageing
Men
Extra Men
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Local market strategy
The local market strategy focuses on creativity which could impressively attract
customers’ attention.
Social media is the strong channel for the spread its reputation in the youth which
mostly are internet savvy and social networking users.
Hosting events strongly influences the youth who enjoy free party and crowed
activities.
Creative bill board advertising will easily impress consumers because the
concentration of the youth when riding motorbike, especially most of Vietnamese
people travel by motorbike, will attract the riders. Moreover, the creative bill
board advertising will be easily spread due to power of word-of-mouth.
International scope of the project
Paired with the local strategy, the international brand teams, being responsible for
managing brand reputation, have to share the same profile of target audience and learn
from the local strategy in order to contribute to international strategy, even though there
is differentiation in culture and belief system. However, the online activities is useful due
to it is a factor in making the world become flat.
Media Strategy The purpose of media strategy is to provide a media strategy which could meets the
marketing communication objectives with the cost as low as possible (Kotler, 2009).
To create an effective media strategy, the offline and online media will be used in the
integrated communication channels.
Broadcast media
Television: using the repetitive advertising technique to create the impression and
awareness in audiences, especially with the memorable rhyme and slogan (which could
become an verb as well as idiom in daily life).
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Cinema: this is the place that most of audiences are young people, which fit to the target
audience of the brand. Moreover, audiences pay much attention in the time of cinema.
Hence, a good advertising should be showed in type of storytelling which supports people
full information products.
Online broadcast media (such as YouTube and podcasting): online media is used in
relaxed time which required the brand to create an emotional appealing advertising
because it will be shared easily between audiences and loved by them. An advertisement
having humorous and meaningful factors will be easily spread on the Internet and it will
lead to the success of the brand via the power of word-of-mouth.
Print media
People will be easier to be attracted by the creative image more than information.
Therefore, a creative print ad will be used on newspapers or magazines. The color black
and white will be chosen for its simplicity and manliness. It is important to show the right
content of image for the right newspaper because each newspaper will have different
audience. For example, business magazine is for professional businessman, so the print
ads must show the charming of a successful businessman.
Out-of-home advertising
To attract audience’s attraction, the advertising must be creative! Billboards are main tool
for marketer to advertise outdoor, and it reaches to every audience because most of
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people in Vietnam go to work or hang out by motorbikes which require riders to focus on
the way. Corners are good place for advertising, especially where usually have traffic jam
because people have bored time and look around for interesting things.
Social media
YouTube and Facebook are two channels strongly dominate social media in Vietnam.
YouTube: L’Oreal Paris Vietnam channel
The brand can use the same creative advertising from online broadcast media to attract
viewers. The long story to advertise is possible for YouTube if it is a meaningful and
creative.
Moreover, endorsement for famous YouTube users/groups will be effective in increasing
brand awareness. Ex: Dua Leo – stand-up comedian, FAPtv groups, Pho Dac Biet group,
video bloggers, etc.
36
Facebook – L’Oreal Paris Vietnam
Facebook is a most popular social networking site in Vietnam. L’Oreal could use
Facebook to increase brand awareness by interesting posts (tips for washing face or life
hack) or controversial advertising posters to provoke discussions.
Event marketing and sponsorship
Activities/Events Description How Highlight
New Year
countdown
(Lunar New
Year)
It is hard to find a
good place to
have party and
watch fireworks
on New Year
Eve, so the
events will attract
thousands of
people to join in
and it could reach
millions of
viewers.
•
Create an
activity on
Facebook which
require
participants to
post their selfies
with L’Oreal
products. Each
hundreds of like
for the photo
will gain a ticket
to event.
Event will be a party with
famous DJs on the top list
in the world. Cheap drinks
will be supported in the
events.
Decorate your
walls with
L’Oreal
The new brand of
L’Oreal – Perfect
Refresh will
deliver a
beautiful
Create a
activity which
asks participants
to take photos of
The most liked 10 pictures
will be awarded with
prizes such as iPad, iPhone
or a ticket to travel to
Europe with 10 days.
37
rectangle black
box which could
be stuck and
decorated on
walls. Buyers
could use them to
decorate on the
way they like.
their decoration
with L’Oreal
box on walls.
38
Media Schedule and budget allocation
Timeline Why (Objective) What (strategy) Where - location Who Budgets
For 6 months
15 Dec -15 May
2016
Create the
strong
discussion
on social
media
(more than
95% of
male users,
who are
target
audience)
Tv commercial
advertising during
first 2 weeks 10
times a day. Then
5 times per night
other month.
Television
Marketing
Managers, IT
developers
Revenue $80,000
Cost $50,000
Print ad
magazines,
newspaper
Well-known
coffee shop,
stores,
supermarket,
airport
Marketing
Manager, Design
agency
Revenue $75,000
Cost $65,000
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after
launching a
social
media
campaign
(by May
2016).
Develop the
brand
awareness
of target
audience to
80% from
the success
of the
campaign
(by May
2016).
Reach 14%
of target
Billboards At the corner
where usually
have traffic jams
Marketing
Manager, Agency
Revenue $100,000
Cost $85,000
Advertising
through famous
Vblogs, YouTube
users and
Facebook users.
Lunar New Year
event and party
Online
Newspaper
- Relationship
Managers
-Marketing
Manager
Revenue $1,000,000
Cost $400,000
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audience
having
purchase
intention
after the
campaign
will be
launched
for 3
months.
Contest for
decorating walls
with L’Oreal box
Creative campaign
event and
activities
Social media
platform, public
relation
Relationship
Managers
Revenue $150,000
Cost $100,000
Utilise social
media Facebook
offer promotions
Social media,
Retail Stores
Marketing
Manager
Revenue $50,000
Cost $45,000
For 2 years
15 Dec 2015-15
Dec 2017
Achieve
95% of
target
audience
being
Lunar New Year
countdown event
Close to place to
watch clearly
fireworks
PR Managers, and
Financial
Manager
Revenue $100,000
Cost $75,000
Informed
advertising
Cinema theater Supply Manager,
Marketing team
Revenue $150,000
Cost $80,000
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aware of
the brand.
Increase
the number
of people
having
intention to
purchase
new
Brand
Ambassador
TV commercials,
Events
PR Managers,
Agency
Revenue $25,000
Cost $10,000
Managing
response to
customer feedback
on Facebook
Online IT Managers
Marketing team
CRM
Revenue $45,000
Cost $30,000
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Monitoring & Evaluation Time period – 2 years from 1 Jan 2016 – 1 Jan 2018
From Objective IMC How will you Who is going to When (how often will you Contingency Plan
products by
30%
Retain 30%
number of
customers
after the
first
purchase of
new
products
within 3
years.
Online broadcast
media
Online
Stores
Relationship
Managers, IT
Managers,
Marketing
Managers
Revenue $60,000
Cost $45,000
Total Revenue $1,610,000
Cost $1,165,000
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measure the
performance
measure it? measure performance)
Does the number of
repeat customers
increase?
Compare the
percent of
previous year
repeat customer
by metric
monitor. Have an
IT system read of
CRM system
Marketing
Manager, IT
Manager
Dec 15th 2015 – Dec 15th
2017, Every month
Create event for
promoting products
and award customers
with discount vouchers
for loyalty program.
Have we achieved
new customers
purchase new product?
Compare
previous period’s
RM account
numbers and
revenue with
current period.
Relationship
Manager,
Maketing
Manager
Dec 15th 2015 – Dec 15th
2017, Checked statistic
every quarter
Increase advertising in
social media/public
relation.
Ensure sale and
market share increase
Compare the
percent of
previous year
sales
Financial
Manager
Dec 15th 2015 – Dec 15th
2017, Checked statistic
every quarter
Expand retail store and
the area for shipping of
online sale.
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Have the number of
brand awareness
increase?
Survey 5,000
people of the
target audience
using
Telemarketers
with appropriate
scripts.
Marketing
Manager,
Relationship
Manager
Dec 15th 2015 – Dec 15th
2017, Every month
Increase print ad and
public ad
Have we achieved
view and follower on
social media?
Compare
previous period’s
Online
measurement also
allows more
accurate tracking
of reach
IT Manager,
Brand Managers.
Dec 15th 2015 – Dec 15th
2017, Checked statistic
every quarter
Research and create
more interesting
activities on Facebook
and YouTube.
45
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