dim marketing campaign for l'oreal
DESCRIPTION
Direct Marketing Campaign forTRANSCRIPT
Direct and Interactive Marketing Management
Module 4MMC7A9.2
Semester 2, 2013
Coursework: Part 2 – Recommendations Report
Group Members:
Poonporn Laoruanglert 13685463Kasamaphan Lourvanij 13642615
Vasilisa Luchina 13078946Anna Gazhonova 14074811
Valentina Shevchenko 14079995
26nd March 2013
Word Count: 3,500 words
Executive Summary
L’Oreal 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 Garnier, Kielhs, Redken, Lancôme.
This report describes the direct marketing campaign for the anti-aging skin care
collection Reviatlift proposed by DIMax agency.
In order to promote Revitalift collection, direct marketing campaign strategy will
comprise two tactics: acquisition aimed at gaining new customers and their retention.
Direct mail, direct response advertising, which comprises billboards throughout the
UK and four magazines which are most popular among the target audience, e-
newsletters will be used for acquiring new customers through five step approach.
Loyalty scheme and Regular customer updates (through website and Facebook page)
will be used as part of retention tactic.
According to the estimations made by DIMax agency this direct marketing campaign
will generate £6,283,000 of revenue and the ROI will constitute 1:5.3.
Table of Content
Executive Summary.......................................................................................................2
Table of Content.............................................................................................................3
1. Direct Marketing Strategy......................................................................................4
1.1 Objectives.............................................................................................................4
1.2 Overall Strategic Approach..................................................................................5
1.3 Segmentation and Targeting................................................................................5
1.4. Positioning Statement..........................................................................................5
1.5 Positioning Matrix................................................................................................6
2. Campaign...............................................................................................................7
2.1Creative Brief........................................................................................................7
2.2 Tactics.................................................................................................................8
Media Used............................................................................................................8
3. Acquisition Programme Flowchart......................................................................13
Acquisition Objective...............................................................................................13
4. Acquisition Programme Schedule........................................................................14
5. Retention Programme Flowchart.........................................................................14
Retention Objective..................................................................................................14
6. Retention Program Schedule................................................................................18
7. Measurement........................................................................................................18
Response Rate/Conversion Rate: Measure the Results............................................18
8. Evaluation............................................................................................................20
9. Budgets & bottom line forecast results................................................................20
Estimated Revenue...................................................................................................21
Estimated Profit and ROI.........................................................................................21
Conclusion....................................................................................................................22
Bibliography.................................................................................................................23
1. Direct Marketing StrategyL’Oreal Revitalift Line
1.1 ObjectivesOur objectives are not just to keep current customers but also to recruit new ones.
According to Mintel report, it can be seen that main reasons for purchasing an anti-
ageing products for women are good quality of products, as well as good advertising
and customer’s feedback (Mintel, 2012). Hence, our direct marketing campaign will
focus on communicating the message about the exclusivity and uniqueness of using
Revitalift product.
L’Oreal Revitalift is now on the initial stage of its product life cycle.
Figure: 1 Product Life Cycle.Source: Mintel
At this point the fundamental marketing communication objective for L’Oreal
Revitalift is as follows:
L’Oreal Skin Care Revitalift
To create widespread awareness for at least 30% in the next 12-week
period by generating interest and desire among the target audience.
This central aim drives three main objectives of the direct marketing campaign:
Create а database of new/potential customers of 1.1 million people across UK
that can be used to activate the direct marketing campaign.
Attract 150,000 new customers to activate and drive people to store
Drive £6,283,000 of turnover through the development of these campaigns
1.2 Overall Strategic ApproachThe marketing strategy of our campaign has two tactics – acquisition and retention.
1.0 Acquisition tactic is aimed at gaining new customers using direct mail, e-
newsletters, direct response advertising (OOH, magazines,).
2.0 Retention tactic employs loyalty schemes and customer updates via e-newsletters
and social media.
By combining these two tactics L’Oreal Revitalift Line will be able to gain bigger
market share in the UK.
1.3 Segmentation and Targeting
The target group for L’Oreal Revitalift includes females aged from 45 years old and
above, belonging to social classes B, C1, C2. According to the UK National Statistics
data, this particular group composes large number in the UK population today.
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L’Oreal Skin Care Revitalift
1.4. Positioning Statement
For modern energetic ambitious women who want to look good and attractive at all
times. L’Oreal Revitalift is the number one multi-action innovative collection of
products which help to slow down the process of aging. Unlike other skin care
programmes, Revitalift targets 10 signs of ageing in one which makes it the most
effective anti-aging cosmetic product.
1.5 Positioning Matrix
Figure 2: The Brand Positioning: L’Oreal Revitalift anti-ageing Line versus competitors.Source: own work
According to the graph above L’Oreal Revitalift is perceived as a high quality
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
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L’Oreal Skin Care Revitalift
premium quality lines as Clarins, Lancome and Estee Lauder are much more
expencive. It gives L’Oreal a product advantage over its competitors.
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2. Campaign
2.1Creative Brief Brand
Product
L'Oréal Group
Skin Care Revitalift
Brand Essence Caring, rejuvenating and renovating
Target Social classes: B, C1, C2
Age groups: 45-54, 55-64, 65+
Gender: Female
Existing Customer: current users of L’Oreal
New Target Market: women who care about their appearance and who need high-quality skin care collection for affordable prices
USP Innovative anti-aging formulae that targets 10 signs of ageing
What do we want the campaign to achieve?
Acquisition: to gain 150,000 new customers registered during the campaign
Retention:
Retain current customers
Retain acquired customers and win their loyalty
How do we want the target to feel about the product after the campaign?
It is necessary to create the image for Revitalift products as innovative and being able to slow down aging, thus, making Revitalift an alternative to plastic surgery.
Revitalift collection should become ‘First in Mind’ variant when it comes to decision making process. Women should be informed that being more affordable Revitalift collection is of as high quality as more expensive competing products.
Message Points/Reason Why
Revitalift collection consists of 16 products for different types of skin which
repair deep-set wrinkles
have double lifting effect
prevent new wrinkles
nourishe skin
L’Oreal Skin Care Revitalift
Mandatories L'Oréal slogan “Because we’re worth it”
Media Outline Women magazines E-newsletters OOH Social media Direct mail
Timing September 2013 – August 2014
Budget £2,000,000
Table 1: Creative Brief.Source: own work
2.2 TacticsThe marketing strategy of the campaign will include both acquisition and retention
tactics aiming to gain new customers and keep existing ones. The main message
which must be conveyed throughout the campaign is that innovative Revitalift
collection may serve as an alternative to plastic surgery.
Media Used
Direct MailDirect mail will be sent out using rented list, which will enable to communicate with
the right target group. It is expected to get 960 responses out of 19,200 mails sent.
Newsletters informing about Revitalift promotions in different retailer stores and also
samples of products will be sent through mail system once in 2 weeks.
E-newsletterUsing rented list for new customers newsletters will be e-mailed weekly. They will
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Pic. 1: Direct Mail newsletter and sample of Revitalift cream
L’Oreal Skin Care Revitalift
inform about web-site updates, new articles and videos uploaded there and also give a
couple of beauty advices for women aged over 45. This campaign aims to get 10
responses out of 5,000 e-mails sent.
Out of HomeOutdoor media works effectively due to the fact that a customer comes across the
same message frequently. In order to reach wider audience 1,500 Revitalift billboards
will be placed in London and other big cities of the UK: Manchester, Leeds,
Birmingham, Sheffield and Edinburg. The campaign will last for one month.
Pic. 2: Outdoor advertising
At the bottom of every billboard L’Oreal web-site address will be given in bold. The
nearby message will invite customers to visit the web-site and register there.
MagazinesSince press is the medium which enables very precise targeting, three magazines
which are most popular among women aged over 45 belonging to B, C1 and C2 social
classes have been chosen for direct response advertising campaign. These are monthly
glossy magazines Women & Home, Sunday Time Style and Good Housekeeping,
Tatler.
Revitalift collection will be advertised in these magazines. The URL of L’Oreal
relaunched web-site will be placed in the noticeable place. Underneath there will be a
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L’Oreal Skin Care Revitalift
message inviting customers to register on the web-site and join L’Oreal loyalty
programme.
Additionally vouchers/flyers with a special reference number will be attached to
magazines. It will enable customers to get a discount when buying a Revitalift
product. The only thing which will be necessary here is to register reference
number/bar code on the L’Oreal web-site. It will also help to encourage more people
to visit the web-site.
The following magazines were chosen to promote L’Oreal Revitalift brand due to the
following reasons:
They reflect target audience lifestyle
High coverage among the target audience
High circulation figures in the UK
High recognition among the fashion conscious consumers
Pic. 3: Magazines11 | P a g e
L’Oreal Skin Care Revitalift
Title UK & EU
Circulation
Readership
(‘000)
Cost per page
(£)
Target
audience
profile
Good House keeping 182,146 762 19,000
Style-conscious opinion formers with a medium disposable income and a passion for home decoration, travelling, beauty
Tatler 85,084 204 10,700
Up market, affluent individuals who have lavish lifestyle. Average house hold income: £122 746
Woman & Home 165,575 463 23,900
Concentrated in the B, C1, C2 35-65 demographic group
The Sunday Time Style 85,655 520 10,500
Smart, sophisticated and intelligent women (B,C1,C2) image conscious women aged 45+.
Table: 2 Total Readerships. Source: Mediatel, 2012.
Adverts will be published in four issues of each magazine on the second step of the
campaign (sending out the message) and in four issues on the fourth step (resending
the message).
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L’Oreal Skin Care Revitalift
Social Media
Facebook fun page will be created in order to announce special offers, new products,
and events. Additionally, customers will also be able to share their photos,
information and give advises.
Website and Online ShopIt has been decided to re-launch L’Oreal’s website, as it has several drawbacks: it’s
not informative enough; the design is too simple and not attractive; colors of the
website are dark and give negative impression; lack of consumer engagement.
The new website will be designed in bright, warm colors and will have an easy-
understandable navigation. It will have new features such as advices from experts,
different articles about health and beauty, consumer reviews, price comparison.
Every product will have detailed description. The website will be updated every 2
days. The most important change will be in dividing it into different age categories
enabling customers to go straight to their age category and to choose products that
suits their age. Additionally, each category will have articles and advices about
beauty. Revitalift line will be in 45+ category section and will have its own mini
videos on how to prolong the youth of the skin and live chats with L’Oreal’s experts
where women in real time could ask them their questions. The 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 L’Oreal to collect customer data.
In addition, there will be created an ecommerce platform (on-line shop) that will be
rolled into L’Oreal’s main website. By selling products directly (without a retailor
store as a mediator) L’Oreal will get an opportunity to establish closer relationship
with its customers.
Relaunched web-site and on-line shop will provide the customer with expert advices,
detailed information and useful videos which will help to win customers’ trust and
loyalty.
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L’Oreal Skin Care Revitalift
3. Acquisition Programme Flowchart
Acquisition Objective
To achieve 150,000 people registered on the website and thereafter to
purchase products from online shop and in-store
To generate £6,283,000 revenue
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Pic. 4: Web-site pageSource: own work
L’Oreal Skin Care Revitalift
Figure: 4 Acquisition programme flowchart.Source: own work
To make the campaign effective as much as possible it must have a multi-step approach.
Step 1: Hot list
The hot list of 150,000 names will be rented.
Step 2: Sending out the message
The aim is to promote L’Oreal through direct mail, direct response advertising, social
media and e-newsletters.
Step 3: Measurement
After the first message is sent we will measure the number of new customers.
Step 4: Resend the message to stimulate action
The same means as on the second step will be used (via direct mail, direct response
advertising, e-newsletters) for those who for some reason missed or ignored the first
message.
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Acq
uisi
tion
Step 1: Hot ListLifestyle List
(New Customers)
Step 2: Sending out the first message
Direct ResponseAdvertising
Out of Home
Magazine ads
Online Media
www.L'Oreal.co.uk
FacebookDirect Mail
Step 3: Measurement
Step 4: Resent the message to stimulate
action
Direct Response Advertising
Magazine ad
Online Media
www.L'Oreal.co.uk
FacebookDirect Mail
Step 5: Measurement
L’Oreal Skin Care Revitalift
Step 5: Measurement
The effectiveness of this direct marketing programme will be measured by the number
of newly registered customers and the number of purchases made.
4. Acquisition Programme Schedule
Table 3: Acquisition Program ScheduleSource: own work
5. Retention Programme Flowchart
Retention Objective To retain new customers
To generate £6,283,000 revenue
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L’Oreal Skin Care Revitalift
Figure: 5 Retention program and Campaign Flowchart Source: own work
Campaign 1: Loyalty Scheme
By creating а unique loyalty scheme, it will help to increase satisfaction level
of customers, as well as improve relationship with them. It can also help to get
vаluаblе insights into buуеr bеhaviоur and to collect customer data. L’Oreal
loyalty card, which will be called “L’Oreal with L’Ove”, will give a sense of
privilege to its members.
1. By becoming a member of “L’Oreal with L’Ove”, customers will receive 2
plastic membership cards with the starting amount of 10 points on both of
them. The member retains one and has an option of giving second card to
friend. а2. With every purchase customers will get certain number of points
1 pound = 1point; 100 points =10 pounds gift voucher to spend on
the next purchase or 10% discount of the next purchase.
3. There will also be special gifts and surprises for “L’Oreal with L’Ove”
members, such as gifts for Christmas and Mother’s day.
4. “Revitalift Tea Party”
“L’Oreal with L’Ove” will create a special event for the most loyal
45+ members. It will be an informal gathering in the format of tea
party. In this event women can socialize, share their experience with
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Ret
entio
nCampaign 1: Loyalty Card
Membership card - L'Oreal with L'Ove
Collecting Point
100 points get 10 pounds gift voucher
1,000 points get special treatment
Special offer
Revitaeift Tea Party
Surprise gifts - Free dilivery
Get double point when purchaseing on your birday
Campaign 2: Customers updated
Online Mediawww.loreal.co.uk
L’Oreal Skin Care Revitalift
L’Oreal, give their opinion on products, telling what they want to get
in the future from L’Oreal, particularly in the category 45+.
5. Another great opportunity for members to receive an exceptional benefit is to
collect 1,000 points and to get a special treatment in one of L’Oreal’s salons in
London. It can be a makeup session, a blow dry, or a manicure/pedicure.
6. On their Birthdays customers will
get double points for their
purchases.
Pic. 5: The example of the loyalty card of L’Oreal with L’Ove.Source: own work
Campaign 2: Customer Update
Keeping customers updated is very
important.
New products and special promotions will be announced through L’Oreal website and
Facebook. Every registered customer will get link onto web-site/Facebook update by
e-mail.
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L’Oreal Skin Care Revitalift
Pic. 6: The example of online media: L’Oreal Facebook.Source: own work
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L’Oreal Skin Care Revitalift
6. Retention Program Schedule
Table 4: Retention Programme ScheduleSource: own work
7. Measurement
Response Rate/Conversion Rate: Measure the ResultsType of Media Number
of contacts
Response Rate (%)
Conversion Rate
Cost per each media channel (£)
Expected Spending
per transaction
(£)
Expected Revenue
(£)
Social Network
Facebook 47,536 0.2 1 in 8 237,680 20 4,753,600
Out of home
Billboards 13,436 5 1 in 6 2,687 20 53,740
Magazines
Woman and Home 5,920 3 1 in 4 1,973 20 39,460
Sunday Times Style
17,700 3 1 in 4 5,900 20 118,000
Good Housekeeping
8,528 3 1 in 4 2,843 20 56,860
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L’Oreal Skin Care Revitalift
Tatler 27,680 3 1 in 4 9,227 20 184,540
Direct Mail 19,200 5 1 in 6 3,840 20 76,800
Е-Newsletter 5,000 0.2 1 in 6 25,000 20 500,000
Company Website 5,000 0.2 1 in 6 25,000 20 500,000
TOTAL 150,000 314,150 6,283,000
Table 5: Shows the results of response rate and conversion rates for the campaign.Source: own work
Out of Home
Outdoor campaign (billboards) will be measured by eyes on Impression system
(EOIs), where results will be gained from different types of data, i.e. survey, blogs,
data analytics and customer reviews.
Е-newsletters
To measure response rate in this campaign there will be developed 4 different types
of mails that will be sent to trial group of customers - 600 people in 5 big cities across
the UK (London, Manchester, Birmingham, Leeds, Edinburg). The type of e-mail
that will receive higher response and conversion rates will be sent to the rest of the
target audience.
Print Advertising
The response rate to the campaign will be measured by inserting voucher/flyer with
bar code/reference number on each of them. Hence, if a customer wants to get a
discount when buying a Revitalift product she will need to register this number
online. That is how the exact number of customers will be measured.
Social Media/ Online
Social media will be tracked by the number of fans, likes, comments.
Facebook: number of likes of the L’Oreal Revitalift page.
Website: number of visitors, comments in the blog and customers
feedbacks.
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L’Oreal Skin Care Revitalift
8. EvaluationEvaluation process will be in the end of the campaign. The final campaign results will
be evaluated and compared with initial objectives.
Type of Media Initial target (Responses) Forecast results (Responses)
Е-newsletter 300,000 members 3,800,000
Facebook 50,000 fans 120,000
Magazines -Print 8,000 promotion users 10,000
Out of Home 1,000,000 positive responses
1,000,000
Total Responses 1,358,000 4,930,000
Table 9: Evaluation of the CampaignSource: own work
9. Budgets & bottom line forecast resultsDirect
Marketing Tools
Description Size Frequency Price
(£)
Out of Home
Billboard 1,500 in London, Manchester, Leeds, Birmingham, Sheffield and Edinburg
6 Sheet
(3ft x 6ft)
1 month 387,500
Magazines
Woman & Home
Full Colour Full Page 4 issues 76,500
Good Housekeeping
Full Colour Full Page 4 issues 83,584
The Sunday Times Style
Full Colour Full Page 4 issues 161,700
Tatler Full Color Full page 4 issues 350,000
Direct Mail (unit cost – 0.1 p) 300,000 30,000
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L’Oreal Skin Care Revitalift
mails
Direct Mail Production 11,000
E-newsletter (unit cost – 0.1 p) 500,000
e-mails
50,000
Company
Web-site
Expansion of company web-site
Maintenance fee
10,000
7,000
Facebook Monthly admin (unit cost – 200) 5 1,000
TOTAL 1,168,284
Table 8: Budget and bottom line forecast resultsSource: own work
Estimated RevenueAll sorts of media used in the direct marketing campaign for Revitalift will cost
£314,150. Both acquisition and retention parts of the campaign will produce
£6,283,000 of revenue.
Estimated Profit and ROI
According to the estimations of the expenditure and revenue of the campaign,
£5,968,850 of profit will be generated.
Relying on all these calculations the campaign’s return on investment has been estim-
ated. It shows how much the company will get in return for the investment it made. It
will allow the company to decide whether it worth to invest in the campaign or not.
The ROI from the direct marketing campaign for L’Oreal Revitalift will be 1:5.3.
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L’Oreal Skin Care Revitalift
Conclusion
The value of the UK beauty industry is over £15bn. Unlike many other industries it
was not heavily affected by the economic crisis because of womens’ “obsession”
with keeping their beauty.
Revitalift is a new skin care collection for women aged over 45. Now 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 techniques must be employed.
For customer acquisition direct mail, e-newsletters, direct response advertising and e-
commerce will be used. These tools will enable to attract new customers. For the
purpose of retaining customers loyalty scheme, which will have several levels, will be
worked out. Members of the “L’Oreal with L’Ove” loyalty scheme will not only get
different prizes and discounts but will also get an opportunity to participate in L’Oreal
special events for those who use Revitalift.
This direct marketing campaign is estimated to generate £6,283,000 of revenue which
makes it a good investment for L’Oreal.
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L’Oreal Skin Care Revitalift
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