UNIVERSITY OF FINANCE AND MARKETING MAJOR OF MARKETING TRƯỜNG ĐẠI HỌC TAI CHINH - MARKETING
FINAL EXAM MARKETING MANAGEMENT COURSE CODE: 2311702006001
TOPIC: ANALYSIS AND MAKING MARKETING PLAN FOR L’OREAL BRAND
Lecturer: Th.S Ngo Minh Trang
HO CHI MING CITY — 2023
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UNIVERSITY OF FINANCE AND MARKETING MAJOR OF MARKETING
TRƯỜNG ĐẠI HỌC TÀI CHÍNH - MARKETING
FINAL EXAM MARKETING MANAGEMENT COURSE CODE: 2311702006001
TOPIC: ANALYSIS AND MAKING MARKETING PLAN FOR L’OREAL BRAND
Lecturer: Th.S Ngo Minh Trang
Excutive student
Trang 3TABLE OF CONTENTS CHAPTER 1: REASON FOR CHOOSE THE TOPIC CHAPTER 2: EXECUTIVE SUMMARY CHAPTER 3: SITUATION ANALYSIS
3.1 Market Summary
3.1.1 Analysis of skincare industry in Vietnam 3.1.2 Industry trends
3.2 Macro — environment 3.3 SWOT
3.4 Competition
CHAPTER 4: MARKETING STRATEGY
4.1 4.2 4.3 4.4 4.5
Objectives Market Segmentation Target Markets Positioning Strategies 4.5.1 Product Strategy 4.5.2 Pricing Strategies 4.5.3 Distribution Strategy 4.5.4 Communications Strategy 4.6
CHAPTER 5: FINANCIALS
Marketing Mix
5.1 Revenue forecast (April 2023 — April 2024)
5.1 Forecast of Marketing costs and implementation time from 2023-2024
CHAPTER 6: CONTROLS
6.1
Trang 4TABLE LIST
Table I: Vietnam”s per capita income from 2019-2022 - SH SH 1 7 (F1) 729/0 6À.S 3 eciestaesaeseaseeeceeseeeseeseaeeaees 8
Table 3: Competitors nn : 10 (F0) C1 0o 0n ng:⁄ 15
Table 5: Analyzing Competitor’s Cosfs, Price and Cffers Ăn 21
Table 6: Marketing plane ccc ceceeceeeececeeecaeeeeeaeeeeceeeeeeeeeseceseescaeseseaseeeeeeeesaeeas 23
(F)) 120 ii nn Ầ 26
(F1) 22/0000) cá “đi 26 Table 9: Implemenfation Ác HH HH HH HH HH HH HH TH HH Hkn 28
FIGURE LIST
I0 cố 10
2 Figure 2: OLAY’S 0 11
EMoii oi nh ố ố < 11
4 Figure 4: Shiseido’s cream óc SH 11* 1121111211121 1111111114111 Tá Hà ng TH HH, 12
5 Figure 5: Estée cố cece 13
6 Figure 6: Posifioning map HH HH HH HH HH HH HH HƯU 18 7, Figure 7: The ingredient list of “ LOTV”” LH HH HH HH HH HH HH In 19
8 Figure 8: Packaging of “LOV” oo 20
Members do Work
Ngoc Lam Lam Oanh Thanh Van Chapter I 100% Chapter 2 100% Chapter 3 100%
Chapter 4 100%
Chapter 5 100% 100% 100% Chapter 6 100%
Chapter 7 100% Design product 100%
References 100%
Word 100%
Trang 5CHAPTER 1: REASON FOR CHOOSE THE TOPIC
Currently, with the increasing quality of life, the general trend of cosmetic stores and beauty salons is to return to nature Cosmetic companies are actively building for themselves safe and quality brands, especially taking advantage of beauty ingredients available in nature such as: essential oils, fruits, coffee, tea green, To produce a variety of quality beauty
cosmetics
In recent days, in Ho Chi Minh City and neighboring provinces and cities, the UV index has continuously reached the red alert threshold According to the World Health Organization
(WHO), the current ultraviolet (UV) index of 3 has begun to cause harm and too long
Trang 6CHAPTER 2: EXECUTIVE SUMMARY
L'Oréal Cosmetics Group was founded in 1909, its headquarters are located at the Eugene Schueller Centre in Clichy, Hauts-de-Seine, near Paris After more than 100 years of establishment and development, up to now, L’Oréal has become one of the "tycoons" controlling and dominating the world beauty industry The Group does business in more than 130 countries and employs more than 88,000 people worldwide
L’Oréal currently holds more than 25 leading prestigious brands, divided into 4 main categories:
« High-end categories: Lancome, Shu Uemura, Cacharel, Diesel
¢ Pharmaceutical and cosmetic categories: Vichy, Skinceuticals Sanoflore, Inneov and La Roche-Posay
« Professional Categories: L'Oréal Professionnel, Kerastase, Matrix, « Consumer goods: Maybelline, Garnier, L’Oréal Paris,
L'Oréal's facial care products are developed according to a rigorous formula process that ensures safety and effectiveness for users, especially for sensitive skin L'Oréal facials are committed to providing dermatological care to as many people as possible At the same time, the brand always listens and absorbs feedback through the process of working with dermatologists in the countries where the brand is sold L’Oréal’s facial care products have undergone multiple trials before being officially launched and recommended by more than 90,000 dermatologists around the world These are relative numbers for a cosmetic pharmaceutical brand With the development of online commerce platforms as well as the growing awareness of consumers about facial care, the above numbers promise to increase in
the future
Trang 7Campaign activities:
* Cooperate with KOLs, celebrities to receive products and use and post photos and videos of the results before and after using the product, thereby highlighting the skin rejuvenation and skin care benefits of the product
« Applying the campaign after 24 hours, each review photo when using the product will be donated 40,000 VND to the skin cancer charity
Mission : “LOV” wants to bring to women and men around the globe highly effective products suitable for all skin types including the most sensitive to improve the quality of life of anyone with skin problems, from from acne to aging, and help spread the word about safe sun protection through high-quality products and raise consumer awareness about skin cancer
Trang 8CHAPTER 3: SITUATION ANALYSIS 3.1 Market Summary 3.1.1, Analysis of skincare industry in Vietnam Industry revenue and growth Vietnam’s skin care product market size reached 854.3 million USD in 2019 and is expected to reach 1,922.4 million USD in 2027 Skincare products market can increase revenue by 1,154.25 million USD from 2020 to 2027 (Kale & Deshmukh, 2020) Increasing disposable income and a growing young population are the main factors driving the product market In which, the most potential customer segment in the future is Generation Z, accounting for 39.08% of the total population Overall, these factors have increased the demand for skin care products by domestic consumers
3.1.2 Industry trends
The cosmetics and skincare industry has been growing rapidly along with the rapid improvement of living standards in Vietnam Consumer tastes and preferences with increasing disposable income raise the level of sophistication towards premium skin care products Luxury brands become more attractive while mass leather products decline
3.2 Macro — environment
Demographics
Vietnam has more than 93 million people in the group of young people (average age is 32.5 years old), the young population accounts for 65% People’s lives are stable and the demand for beauty increases, especially from men Consumers have more product choices Once a brand has captured the minds of users, their destination is trust And L’Oréal is one of the brands that does this very well
Economy
Per capita income has increased over the years, contributing to the growth of Vietnam's economy The year 2021 is considered a difficult and challenging year for the world economy, including Vietnam However, Vietnam's economy still maintains its growth rate with GDP growth rate estimated at 2.91% And the US cosmetics market share in Vietnam
Trang 9Year Average income 2019 3.425 USD / Year 2020 3.526 USD / Year 2021 3.694 USD / Year 2022 4.110 USD / Year Table 1: Vietnam’s per capita income from 2019-2022 Politics Advantages: The business of skin care products tends to increase, in Vietnam there is a stable government, providing a stable and friendly business environment, creating favorable conditions for enterprises to produce and trade in cosmetics products
Difficulties: However, the tax policy is still complicated, creating difficulties for imported products, thereby directly affecting L’Oréal’s profits
Culture
Nowadays, people don’t want to go to the skin care salon but want the products so that they can organize their own skin care at home and our company is providing such products to the consumers
In general, Vietnamese people have the mentality of buying foreign goods not only because of the quality and design, but also because of the brand reputation of foreign enterprises, and at the same time, Vietnamese goods have not yet created trust among consumers for many reasons In the minds of the 9x and 10x generations, Vietnamese cosmetics are images of poorly advertised mixed creams, cosmetics of unknown origin widely sold on the market
Trang 10Nature Advantages: Vietnamese consumers are more interested in products with natural ingredients L'Oréal has created a friendly environment and activities that positively impact the environment Difficulties: Vietnam's climate is hot and humid, with monsoon frequent natural disasters This greatly affects the preservation and transportation of L'Oréal’s products On the other hand, air pollution in Vietnam is quite serious and working outdoors or in front of a computer for a long time, ultraviolet rays and computer radiation are very harmful to the skin Therefore, skin care to protect the skin is extremely important
Technology
The advanced and modern cosmetic production line element will be an important basis to help cosmetic manufacturing and processing units get the best quality products, bringing high efficiency to consumers
L’Oréal offers virtual try-on's of the company's products before consumers actually pay We also offer tailored solutions for individuals interested in in-depth diagnosis of skin problems 3.3 SWOT Table 2: Matrix SWOT SWOT L'Oréal
O - Opportunities O1 - Large consumer market O2 - The demand for skincare products is increasing
O03 — Environmental pollution, ultraviolet rays, computer radiation push people to make more efforts in taking care of their skin
O4 - The cosmetics industry is on the rise T - Threats T1 - Compete with many opponents
T2 - Diverse customer needs
T3 - Modern technology plays a decisive role and requires high capital
T4 - Consumers today have a high level of understanding and consideration when buying
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S - Strengths
S1 - Wide range of products 32 - Reputation, good quality $3 - Product price is suitable for middle-income people $4 — Products are manufactured and imported directly from abroad, meeting the psychological
and consumer needs of customers
S5 — The product has natural
ingredients, safe for the skin,
supplementing nutrients to help rejuvenate the skin
SO Strategies
S1 +1: Continue to develop product lines, expand markets
32 + $3 + 02: Promote strengths in quality and price to affirm the brand in
the minds of customers, and at the
same time expand market share
ST Strategies
$3 + T1: Create multiple promotions
S4 + T3: Show customers the
versatility of the product $5 + T3: Product quality development
W - Weakness W1 — No large capacity W2 — Focusing on the main anti- aging property, the purposes such as whitening and acne prevention
in the product are more limited WO Strategies
W1 + 02: Produce diverse models,
increase capacity according to
customer needs
W2 + O3: Improve quality, improve products, add ingredients that not only have anti-aging effects, but also have whitening and acne prevention effects
for the skin WT Strategies
Trang 123.4 Competition
Table 3: Competitors
Competitor Product Strength Weakness Marketing Threat Image
Description sfrateøy level
DIRECT COMPETITORS
Innisfree Innisfree Black | Organic Not really Innisfree is | High
Green Tea fermented strong in extremely
Cream EX black tea terms of diligent in
Anti-Aging ingredients ability to researching
Cream fade long- and
Strong in anti- - ¬
term investing in
The product has | oxidant, anti- wrinkles technology
the main premature \
0
ingredient from | aging Contains
increasingly Jeju black tea Has the ability preservatives | diversify its “es leaf extract, to improve product which has the - skin tone, lines effect of protect skin, cleaning skin, Has a low tibacterial - Innisfree’ increasing antibacteria to mid- 1 Figure 1: Innisfree’s cream
resistance, Mid-range range price,
strong anti- price (600,000 suitable for
oxidant and VND/60ml) the
also has the company's
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Laneige Product Products Olay si Taking High packaging containing Regenerist i advantage design is quite | parabens Micro - of the luxurious
Sculpting When I first | extensive
Cream Anti- Reduces the _| applied it, distribution 2 Figure 2: OLAY’s cream
Aging appearance of | my skin felt | system of
Moisturizer wrinkles, anti- | a bit squeaky | the parent ; aging group Olay’s premium P&G, the skincare line The cream is ñ Olay brand ith ful 5 wilt a powerlul | not too thick penetrates anti-wrinkle so it is easy to ae into most formula that spread retail points ffectivel effectively of the tightens and Mid-range cosmetics lifts the face _| Price (VND industry 400.000/48ml)
Product awareness is
high thanks to
famous brand
INDIRECT COMPETITORS
Beautiful, The cream is | Associated
Laneige Perfect Average
youthful, quite thick with the Renew Youth - compact image of = R ti aoe cpeneraling design ¬_- "water and Cream skin should shadow
Skin is consider " 3 Figure 3: Laneige’s
Intensive anti- mask" of cream
; ; smooth and when using Lanei
aging cream with ; _.Ă
soft right after | the product
concentrated sleeping
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