Mkt individual assignment PDF

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Summary

MKT111 with Professor Maskulka...

Description

Brands Current Co-Creation Efforts

Brands Proposed Co-Creation Marketing Mix strategy

Brand

Lancôme

Lancôme

Target Market

Middle aged, middle to upper class women

Busy, millennial women who are tired of the available choices that aren’t personalized for them.

Positioning Provide women with the high quality products that fulfill their quest and enthusiasm for beauty.

High quality makeup made for you, by you.

Product

Le Teint Particulier

App that lets you customize makeup as well as adding additional choices for current Le Teint Particulier.

Price

Value is in the reputable brand name as well as the quality and luxury feel of the products.

Depends on what products and additions are added to customized products. App also links to credit card that allows for automatic reordering of products for automatic and continuous reordering.

Place

Even though more high end, primary distribution channel is department stores that reach the most amount of people such as Sephora, Macy’s, and nordstrom. Also available on their website.

Makeup will be delivered to customers instead of via department stores, adding to the experience of custom made makeup since you literally can’t get it in store.

Promotion

They use alot of celebrity endorsement in ads. Mainly advertise in beauty magazines and tv commercials. They partner w Influenster - a service that gives influential youtubers free beauty products for them to test, and promote if they life it. Also partnered w #1 beauty guru on youtube, michelle phan. She was first ever youtuber to be hired as Lancôme's  official video makeup artist.

Will focus less on celebrities and more on consumer centered advertising. When you make your own shade, you can name it, and the app generates a special barcode for your product so you can share your one of a kind color creation on your social media and allow others to buy your creation.

Coordinati on & Integration / Synergy

Current products are all luxury skincare and they are currently moving towards the direction of technological involvement with development of Le Teint Particulier.

Seamless since it fits with lancome’s long term goal of technology integration to customize beauty. Coordination comes from easy usability of single app that handles creation, payment, and delivery.

References

https://www.loreal.com/brand/l%E2%80%99or%C3%A9al-luxe/la nc%C3%B4me

https://www.nytimes.com/2004/07/06/business/media-business-advertis ing-lancome-rely-less-rose-more-bold-signature-reach.html

http://snapshot.numerator.com/brand/lancome

https://www.loreal-finance.com/eng/news/first-quarter-2018-sales-1249 .htm

https://www.degruyter.com/downloadpdf/j/cris.2015.2015.issue-1/ cris-2015-0003/cris-2015-0003.pdf

https://www.forbes.com/sites/baininsights/2013/11/05/having-it-their-w ay-the-big-opportunity-in-personalized-products/#274c6c4a16b9 http://actium.us/home/lancome/

Dear Marie Gulin-Merle, Lancôme has grown to be one of the leading companies in the beauty industry by providing luxury products that range from skincare to makeup. Particularly, Lancôme differentiates its marketing strategy from other high end brands by upholding the company’s positioning statement of “continually taking science and creativity to new levels” in order to deliver technologically advanced products. Although, Lancôme’s target market are middle aged woman with a middle to upper class income level, your company is recently trying to rebrand its image of being an outdated makeup brand meant for older woman to appeal to younger cosmetic users. In order to transform Lancôme’s current image as well as integrate makeup with technology, I have proposed a new marketing strategy that harnesses the power of co-creation to capture more market share. By co-creating value with customers, Lancôme will be able to create more customer loyalty and brand involvement while reducing the risks associated with introducing new makeup products into your brand mix. The target market for these co-creation activities will be younger consumers such as busy women of the working class with a middle to upper class income level. My product positioning statement is to provide makeup users around the world with technologically advanced beauty and skincare that is customized to each individual customer’s needs and wants. This marketing mix will highlight Lancôme’s core value of bringing innovation into beauty in order to cater to each user’s skin type and makeup preferences. The marketing mix will include Lancôme’s recent introduction of the Le Teint Particulier foundation since this product allows customers to visit a participating Nordstroms and place a small handheld device on the surface of their skin that generates a perfect color match. In order to garner even more co-created value, this color deteching technology can be made into a Lancôme mobile app that lets customers cater to their unique skin properties such as dry skin, sensitive, acne prone, oily, or combination. The ability to customize makeup can be extended to other products such as letting a customer choose the color combination of eyeshadows and lipsticks, as well as creating an eyebrow pencil color of their exact shade. Customizable products are the future; a Bain survey of

more than 1,000 online shoppers found that while less than 10% have tried customization options, 25% to 30% are interested in doing so. The price will be also be customizable to an extent since it will depend on how many different properties/the types of properties the consumer wants to add. This optional-product pricing strategy will allow customers to have a say in how much they want to pay; however, the targeted market will most likely not be too sensitive to increasing prices if the product is able to cater to their exact preferences. The place in which customers will be able to design and order their products will be on a Lancôme app and via the Lancôme website. Then the products will be delivered straight to homes, adding to the experience and value of custom made makeup. It will only be available online since department store sales are declining in numbers. Fortune states that “Department stores had $155.5 billion in total sales in 2016, down from $230 billion in 1999” and are being replaced with the growing trend in online shopping (See Chart A ) . The promotion of this strategy will be via customer to customer marketing. When a customer makes their own shade, she can name it and be given a unique barcode for her one-of-a-kind creation which she can then share to her social media followers. This type of customer based promoting will essentially create free advertising for the new app. Additionally, it will reach more segments of the beauty user population because customer to customer sharing will penetrate all types of social media platforms. My co-creation mix will generate and capture customer value by providing customizable products that are integrated together through Lancôme’s app and website. The ability for each customer to find the perfect makeup product for her skin will generate more customer loyalty because she will be the creator of her makeup, starting from the color and the properties, all the way to naming and sharing her creation. Moreover, the risk of launching products that customers do not want are alleviated since they cater products to their specific desires. This integrated co-creation mix will uphold Lancôme’s mission to deliver technologically advanced products to women around the world.

Chart A:

Source: https://www.statista.com/statistics/272391/us-retail-e-commerce-sales-forecast/...