Envisioning Travel Retail MarketPresented by: Team 75 Dawlish

Bonjour !Who we are?

Izzy Adi Cecilia E Pratiwi Adhi Wicaksono

Sustainability commitment for 2020

One of the leading brands in beauty product

“Sharing Beauty With All”

“The key to win more than a billion new consumers with what the ‘universalisation strategy’”

Founded in 1935 by Armand Petitjean

Acquired by L’Oreal in 1964

Now, one of the leaders in luxury beauty product

The vision: Lancôme, the world's leading luxury beauty brand, has epitomized beauty and glamour with a quintessential French touch.

PRODUCTS

Skincare Make up Fragrance

Lancôme's mission is to introduce women of the world to top age skincare products, innovative and desirable make-up as well as emotional fragrances.

COMPETITOR

Premium brands that French women prefer Source: Promise Consulting, Inc

TRAVEL RETAIL

“Travel retail is a key channel for winning over one billion new consumers. This market, present around the world,

could be considered as a sixth continent” Jean-Paul Agon, L’Oreal Group Chairman & CEO

TRAVEL RETAIL

goods sold by travel retailers$60 Billion

Source: Generation Research

TRAVEL RETAIL FUTURE

Sales at airports will grow

by 73% from 2013 to 2019- Verdict Retail

Travel retail sales

set to double by 2020 - Reuters

PASSENGER TRAFFIC

TRAVEL BUSINESS

4%6%

33% 57%

AirportDowntown duty free shopsAirlinesCruises

CONSUMER TRENDS

Buy gift

Browse stores and pass time

To take advantage of airport prices

Always visit duty free shop when I travel

To treat myself

“The travel retail distribution channel is a strategic market for the development and visibility of our brands, and contributes to the

quest of one billion new consumers.”

~ Barbara Lavernos,

Managing Director of L’Oréal Group Travel Retail

Travel retail division was established in 2013

WHO ARE THE CONSUMERS?

They shop wherever they are: in their local markets, when travelling and also in the markets of their destination

Global Shoppers

LANCÔME STRATEGIES

Customized service by nationality

Adapted products’ assortment Multilingual material Customer’s favorites by nationality Events by nationality {

Lancome’s strategy based on diverse global shopper: developing a personalised approach

Through PEST framework (McCarthy and Perreault, 1984: 285), the environment surrounding Lancome will be analyzed as follows:

• Political : All regulations surrounding airport including travel retail regulation, baggage allowance, and Aviation Security.

• Economic : The economic situation on the year and traveller financial condition (GDP, traveller origins).

• Social : Traveller lifestyle reflects consumer needs. • Technological : Existing and developing technology in term of product

packaging and promotion.

MACRO ENVIRONMENT ANALYSIS

SWOT ANALYSIS

Luxury -Famous brand -

High experience in cosmetics industry (since 1935) -Premium products -

Excellent research and development - Established travel retail channel -

STRENGTH

- Limited youth customer (focus only for 30-40s)- Limited product for men- Lack of social media engagement

WEAKNESS

Rising number of global traveller - Increase digital campaign (specific hashtag) -

Increasing product sales in cruise & in-flight - Work with influencer (brand ambassador,

beauty blogger, beauty online forum)Targeting Asian market -

Men’s product line -

OPPORTUNITY- Competition in travel retail cosmetic market - Specific regulations in each countries- Exchange rate fluctuation- Diversified range of consumers’ needs

THREAT

LANCÔME DIGITAL STRATEGIES

Promoting in: Internet banners, landing page, newsletter, airport advertising, out of home advertising, in-flight magazine, in-store

DIGITAL ACHIEVEMENT

Lancôme earned the number one spot for the second year in a row in the 2013 Beauty Index due to a strong e-commerce site, the best mobile and

tablet site among its peers, and social innovation.

Source: http://www.l2inc.com/

WHAT’S NEXT?

TAKING DIGITAL FURTHER

Increasing brand awareness Instagram, beauty blog, beauty forum using specific hashtag (example: #happybeauty)

Maximizing youtube channel, Facebook fanpage and Instagram Team up with beauty influencer

TARGETING ASIAN MARKET

WHY ASIA?

• Despite softening growth rates, the Asia-Pacific region remains the leader for global growth

• Growth rates of China and India are converging to 5.5 percent from 2015–2019

• Despite short-term headwinds from global economy, Southeast Asia will strengthen to global production base

Source: www.conference-board.org

WORLD GDP

ASIA GDP GROWTH

Source: IMF

By accelerating innovation within the business and using the power of Lancome brands to inform consumers, L’Oreal will

encourage consumers to experience happiness.

Happiness is the most attractive form of beauty

Merci beaucoup!