Group Work Project

The CC Cream in France, in India & in Ivory Coast

Mariama DIALLO - Nacima KENZ - Julia MAJERUS

Plan

1. Clinique’s History

2. Main competitors

3. Customer’s target

4. External Analysis

5. Main Clinique’s market : French Market

6. Clinique’s in 2 new markets : Ivory Coast & India

7. International Strategy

Clinique Presentation

In 1968, the brand “Clinique”, was born from the meeting of the famous New York

Dermatologist and the editor of "Vogue" US, Carole Philips.

Goal : Caring rather than only hide skin problems

Types : Division of holding company

• Product : Skin care cosmectis

• Company creation : 1968

• Headquarters : New York

• Parents : Estée Lauder Companies ( 10,8 billion $ )

Clinique’s Competitors

OUR CUSTOMER TARGET

1st

Young women

2nd

Older woman

Potential target : Teenagers

• Age: 20 to 39 years old

• SPC* Fresh out of school or gotten their 1st job

Want affordable skin care product for great skin

Age : + 40 years old

SPC : Strong Professional carrier

Loyal user to Clinique Brand

Age : 12 to 25 years old

SPC : Students

Young woman with skin problems

ex: Acne

External environment analysis

FRANCE

POLITIC : Politic environment stable

ECONOMIC : - 5th world largest economy

- Growth : +1,5% in 2015

- 2nd largest economy in Europe

SOCIAL : 66 million of inhabitants (+0,54%)

65% between 14 – 65 years

TECHNOLOGIC : Excellent scientific and technologic environment

World’s 4th industrial power

ENVIRONMENTAL : Ecology + Green energy

LEGAL : High : Employment laws, labor code, taxations…

External environment analysis

INDIA

POLITIC : Federal parliamentary

republic

ECONOMIC :

GDP: Total: $2.183 trillion

Per capita: $1,688

Growth: 7,3%

SOCIAL :

1.2 billion people

70% between 15 and 65 yo

Increase in the employment of older workers

TECHNOLOGIC : Great technological advancements

Strong IT sector

ENVIRONMENTAL : Recycling, Noise controls, regulations on

waste control and disposal.

LEGAL : Minimum wage increase and disability

discrimination

External environment analysis

IVORY COST

POLITIC : Strength democratic institutions

ECONOMIC : notable economic transition

Economic Freedom Score = 60 (+1,5 in 2016)

SOCIAL : the incidence of poverty has declined: 51% in

2011 to 46% in 2015

TECHNOLOGIC : Investment in industrialization in private sector

ENVIRONMENTAL : New challenges green economy

LEGAL : Weak

Focus on the French Market

Cosmetics : Powerful market in France

1rst exporter of cosmetics in the world

Leader in the world : 25% market share

4th French economy sector: 800 companies and 70 000 jobs.

Turnover : 25 billion €.

Prestige and huge progress on the luxury and cosmetics segment.

No delocalization: the research, design, marketing and distribution are made in French territory

An industry that stimulates innovation

Perfumes and cosmetics: the best ambassadors of our country.

The main distribution channels :

Selective distribution (perfumeries),

The network of pharmacies and parapharmacies,

Mass distribution,

Hair salons or direct sales (at home, internet and correspondence).

Clinique on the French Market

Established for 40 years on the French territory

First prestige cosmetic brand created by dermatologists and located in France

Clinique a specialist Brand Dermatological image that provide medical guarantee and a powerful R&D

Market Segment : Face care, Body Care, Make up, Perfumes (for Women and Men)

Presence in 960 physical outlets in France :- In specialized stores- Clinique Stores and brand’s website,- Other e-shop specialized in cosmetics

Up market products

Zoom on our product : CC Cream by Clinique

• PRODUCT

CC CREAM : Color Control cream »

Control the color of the skin

Adaptation to different types of skin

Correction of all irregularites

Moisturinzing

Sun protection

Prevention against the first signs of age.

Packaging : 40ml. Medium format.

Easy to use and to hold. Design : Sober, class, colored, and resistant

• Price:

33€ for 40ml : High prices ranges

The quality of the product and the prestige of the brand as justification

The targets are not price sensitive

CC Cream Séphora 40ml : 16€

CC Cream L’Oréal Paris 40ml : 18€

Multifonctionnal product

• Place:

▶ One of the main brand’s flagship : referenced in all physical outlets in France (960) :

• Specialized cosmetics shop (Sephora Marionnaud etc.)

• Pharmacy and parapharmacy (product for the dermatological virtues)

• Direct sales (Clinique stores, Internet)

• Promotion :

No muse, but unique advertising campaigns where only the product is important

"Subject to allergy tests. 100?% Fragrance free

Communication tool for the CC Cream by Clinique:

Bloggers and testers reviews

Tutorials (videos) available on the clinical site and on the Youtube page of the brand

( + consumer’s tutorials on internet)

Regular update on social networks : Facebook, Instagram, Twitter ...

High quality CRM: direct interactions with consumers

An expert give you back your own skin diagnostic and deliver you some care advices

(free service online for all)

Clinique’s in 2 new markets:

India and Ivory Coast

African Market’s Opportunities:

African continent is the new “Eldorado for beauty, Cosmetics and personal care player

High potential of consumer in Ivory Coast

L'Oreal research describes African women spend 7 times more than Caucasian women

Industry size

6.935 million € in 2012

Market capitalisation

The total African beauty and

cosmetic size currently

stands at 10.526 million €

excepted in 2017.

Output per year

Industry sources estimate

a rapid growth rate of 10%

per year

Percentage of world

market

Africa has a potential of 1

billion extra consumers

Clinique Strategy : Focused on the Black beauty consumers

1. Driven by Cultural Traditions, Afro American and Nollywood

Black women are influenced by American image of Afro American Women stars, actresses

2. Ivory Coast’s Mass Retail Market Presents Tons of Potential

Clinique must be present in prestigious cosmetics store and open his own store to be able to

propose personalized skin care advices

3. Beauty Education in Ivory Coast is Increasing

Make up Tutorial on Youtube with advices to chose a particular brand

Judge the quality of the product by results

IVORY COAST – Marketing Mix

PRODUCT PRICE

Packaging neutral adapt to all markets

Localized Products Are Attractive to African Consumers :

•Propose the CC Cream with dark shades tones

•Skin care product (results excepted)

•with higher solar protection

• Make up with huge choice of color compatible with dark

shade tongue.

Customer not sensitive for the price

Price must be in phase with national currency

Importance on quality & results

PLACE PROMOTION

Limited access to the product Only one distributor actually

Based on the brand reputation

Communication picture with black women

Choose stars & Social Network influencers to

promote the product

Choose a Black Egery to represent the Brand

in Ivory Coast

Strategy to Expand in Ivory Coast:Entry mode A Wholly owned subsidiary

Apply for a wholly owned subsidiaries in Ivory Coast is valuable :

There is a real growth potential in Ivory Coast

More dark shade for the CC cream

Add in componment of CC Cream :

- Propose Solar Skin Protection + high

- Product to reduce black skin stain

India Market’s Opportunities:

Size of the Industry Market capitalization

The size of Indian Cosmetics Industry globally is

$ 274 bilion, while that of the Indian cosmetic

industry is $ 4,6 bilion.

According to analysis and figures given by the

Confederation of Indian Industries (CII), the

total indian beauty and cosmetic size currently

stands at US $ 950 million and showing growth

between 15-20 % per year

Output per annum Percentage world market

Industry sources estimate a rapid growth rate of

20% per annum

The overall beauty and wellness market that

includes beauty services stands at about US US$

2,680 million, according to CII estimates

Growing economy that plans to see annual income triple by 2020,

The cosmetics market of India is full of opportunities and is a potential gold mine for

many beauty and personal care companies.

Experts tend to agree that the Indian market is bound to explode in a very good

way, at five facts you didn't know about

Indian Market’s Opportunities:

Growing economy that plans to see annual income triple by 2020,

The cosmetics market of India is full of opportunities and is a potential gold mine for many beauty and personal care companies.

Experts tend to agree that the Indian market is bound to explode in a very good way, at five facts you didn't know about

Industry size

Indian Cosmetics Industry

globally is $ 274 bilion, while that

of the Indian cosmetic industry is

$ 4,6 bilion.

Market capitalisation

Indian beauty and cosmetic

size currently stands at US $

950 million and showing

growth between 15-20 %

per year

Output per year

Industry sources estimate

a rapid growth rate of

20% per annum

Percentage of world

market

2,680 million $,

according to CII

estimatation

Clinique Strategy : Focused on the Indian beauty consumers

1. Driven by Cultural Traditions and Bollywood

Combination of cultural traditions and Bollywood’s influence make the market in India both exciting and unique

2. India’s Mass Retail Market Presents Tons of Potential

Large consumer base has a growing disposable income and places importance on personal care. Expanding out of urban areas will be a strategic maneuver using mass market brands and lower price points

3. Localized Products Are Attractive to Indian Consumers

Fulfill the needs and meet the tastes of Indian consumers, creation of products that satisfy local flavors allows direct entry into new markets here

4. Indian Cosmetic Markets Still Haven’t Been Tapped

Research shows that only half of Indian households are buying shampoo and just under a quarter are buying skin care products

5. Beauty Education in India is Increasing

Indian consumers are becoming more and more knowledgeable about beauty and personal care

Each year, more and more classes are offered at academies in India to meet the education demands of this growing field

INDIA – Marketing mix: Clinique will be the first company to launch Clinique CC cream in India

PRODUCT PRICE

Benefits: Cream Moisturizes, Multitasks, SPF (sun protection)

Skin Types: Works for all skin types. Each versatile shade is

appropriate for a range of skin tones and undertones.

More mosturizing because Indian skin are dryer

Product more covering to hide better the imperfection of the skin

Price positionning: Customer not sensitive to the price

Clinique has chosen to address the high-end market

and differentiate itself from the competition by the quality

of its CC cream products.

PLACE PROMOTION

Clinique Experience counters in India’s main cities

3 stores, exclusif outlets, across various cities such as Mumbai,

Chennai and Chandigar

Market

Dynamic sales: Interaction between the client and the

Clinique Consultant (in Clinique stores)

Technical team: Clinique offer customized high-touch

skin solutions through personalized service to our valued

consumers in India

Brand promotion: Using YouTube tutorial to show how

the products works on Indian women with they shades of

skin

Strategy to Expand in India:Entry mode A Wholly owned subsidiary

Apply for a wholly owned subsidiaries in India is valuable :

There is a real growth potential in India

The investment is costly but to enter in the cosmetic market and being competitive

the company should come by itself,

We will use a variety of forms such as brand, trademark, patented technology and

other investment to introduce our product in this new market

Our International Strategy

Clinique company properly taken into account the analysis of macro environment

consumer habits have been studied understand current trends

Ability to adapt our products to the expectations and needs of each consumer in each country