L’Oréal

Brandstorm
2018
Te a m : L o R e a l M a d r i d
Mazzer Luigi 897915
Morelli Vincenzo 900117
Negri Giulia 898041

www.yourcom pany.com
1
 L’Oréal Mission
Universalisation Beauty for all
Globalisation that captures,
understands and respects
differences. Differences in desires,
needs and traditions. To offer tailor-
made beauty, and meet the
aspirations of consumers in every
part of the world.
www.yourcom pany.com
Offering all women and men
worldwide the best of cosmetics
innovation in terms of quality,
efficacy and safety to satisfy all
their desires and all their beauty
needs in their infinite diversity.
2
 Methodology
FOCUS
Our analysis considers the market of professional hair salons in Milan, therefore we will
focus on Milan inhabitants as customer base.

Analysis Proposal
1. Market analysis 1. Value Proposition Canvas
• PESTEL analysis 2. Product
• Segmentation 3. Place
2. Position Analysis 4. Price
• Value Curve
5. Promotion
• RCBV
3. SWOT Analysis

www.yourcom pany.com
3
 PESTEL Analysis

ECONOMIC TECHNOLOGICAL ENVIRONMENTAL

PERSPECTIVE PERSPECTIVE PERSPECTIVE
• Economic Recovery • New technologies allow high • High social responsibility
control of hair damages; new
• Higher disposable towards impact on
treatments and medicalizations
incomes (especially in • Possibilities offered by environment
Milan Center) Augmented and Virtual Reality
• Digital marketplaces
overcoming physical shops

• Milan is a never stopping city and so are its inhabitants, constantly busy to deal both
with work and social life
• Increasing importance of work-life balance, need to recover from stress
• Hair issues are becoming valuable among different ages and both sexes
• Personal achievement and development: be yourself and be happy, hedonism
• Hair as an identity issue, that reflect good health and self care – reflect personality
SOCIO-CULTURAL • Do-it-yourself is increasing thanks to tutorials available on the Internet
PERSPECTIVE
www.yourcom pany.com
*No relevant trends from the Political and Legal perspectives
4
 Segmentation by customer behavior
E X P L O R E R ( y o u n g e r- s u d e n t < 2 5 y e a r s o l d )
Experience, challenge, autonomy – first to try new brands, intense use of social media, uses to
share his experiences on social media – goes to hairdresser to have trendy hair style and
follow its favourite celebrities
SUCCEDER (35-60 years)
Strong goal orientation, confidence, work ethic, organisation – brand choices based on
reward, prestige - goes to hairdresser looking for stress relief and requires high quality
treatment
MAINSTREAMER (35-60 years)
Domestic, conformist, conventional, habitual, value for big brands.

REFORMER 1 (Higher education 25-35 years)

Freedom from restriction, personal growth, social awareness, value for
time, curious, select brands for intrinsic quality, favouring natural simplicity.
Looks for eco-friendly hairdressers and professional products
ASPIRER (25-35 years)
Materialistic, appearance-oriented - Attractive packaging is more
important than quality contents

The Explorer, Succeeder and Reformer segments correspond to the

customers we are going to address in our proposal. Therefore we will
focus on their needs starting from their behaviour.
www.yourcom pany.com
5
 Value Curve
Looking at the most famous
hairdressers in Milan, we
identified Aldo Coppola and
Jean Louis David that are pretty
similar, and belong to the high-
end part of the market. Then
there is Bullfrog, which is in the
medium-end; it focuses on the
re-creation of the atmosphere of
the north-American raw
barbershops. In the low-end
there is L’italiano, which offers
unpretentious hair cuts.

Price Interaction With Fashion forward Variety of Delivered Representation of Natural Products Out-of-Context Design
Operators aspect Services Healthy Living

Aldo Coppola Jean Louis David Bull Frog L' italiano

www.yourcom pany.com
6
 Resources and competences

Local innovation: products developed around the world inspired by “beauty

rituals” of local consumers
19 research and 16 evaluation centres worldwide
613 patents in 2011, 130 molecules developed in the last 40 years

Research & Development

Brand Education
Strong brand awareness in every Renowned professional courses (CLASS
segment hair academy, Kerastase e-academy etc.)
Brand diversity for different Materials and support through the
cultures and countries lorealprofessionel.com web platform

www.yourcom pany.com
7
 SWOT analysis
STRENGHTS WEAKNESSES
Local innovation
Patents, researches
Little or no experience in other treatments (e.g. Spa)
Strong brand awareness in every segment (loyalty)
New technologies not widely used in salons
Focus on professional education
Wide range of products and services
Brand diversity for different cultures and countries

OPPORTUNITIES THREATS
Economic recovery /higher incomes
New technologies Low entry barrier
Customers ask for eco-friendly products and salons High level of competition
Beauty care is becoming valuable among different ages Do-it-yourself is increasing: tutorials on YouTube,
and both sexes Facebook etc.
Personal achievement/development: be yourself and be Digital marketplaces are replacing the physical
happy, hedonism ones
Excitement and frenzy of modern lifestyle: need for relax
www.yourcom pany.com
8
 Value proposition canvas
GAIN CREATORS
Relaxing environment
far from city chaos
Customers leave behind stress
Natural products
for hair treatment
PRODUCTS
& SERVICES
See next slide
PAIN RELIEVERS
Virtual Reality entertainment
during waiting time
Quiet and pleasant environment
Highly skilled operators
try to accomplish customers requests
www.yourcom pany.com
CUSTOMER GAINS
Quality time spending
Healthy hair treatment
Opportunity to change hair style
Relaxing experience - positive emotions
CUSTOMER JOB
Having hair cut
CUSTOMER PAIN
Time spent - waiting time is annoying and worthless
Cost - Milan hairdressers are expensive
Risk – unsatisfactory hair style
Negative experience – uncomfortable
environment
9
 Product
Services: Front office
Stylist, SPA, Tea & Resources: quiet
Convivial Room and qualified staff;
from 07:00AM to No interaction with
12:00PM; operators

The idea is to open a beauty salon

that create a mountain environment
High-Tech: in the city centre, offering customers Care products:
possibility to a unique experience with a wide use of 100%
enjoy mountain’s variety of services in the spirit of natural products
views by means healthy living and relax. under L’Oréal
of virtual reality brands;

Design:
mountain home design,
wide use of recycled
wood, heating with
fireplace;
www.yourcom pany.com
10
 Place
Physical shops will immediately
recall a wellness center located
in the mountains. This will be
achieved thanks to the use of
SECTION warm natural colors and
materials such as rock, wood,
BREAKS glass. The design will be clean,
simple, inspired by nature.

The digital channel will be a fundamental part of our

proposal. The website of the salon will offer a personal
area with the possibility to book an appointment,
manage payments, track special offers and fidelity
points and so on. An e-commerce section will provide a
wide range of products previously tried by the customer
at the physical shop
www.yourcom pany.com
11
 Promotion
During the months preceding the launch of the
new salon, there will be a communication
campaign with the aim of arousing curiosity.
Specifically, the target of the communication will
be millennials (identification with protagonists of
Just breathe. SECTION
the ads), and the channels will be mainly
billboards on bus stops, trams and so on close to
BREAKS
schools and universities. Initially, it will be only a
presentation of the offering rather than an
incentive to sales.
Input Awesome Text Here

Given the nature of target customers (young,

innovators, experimenters) strong presence on
social media will be fundamental. This will allow to
attract new customers but also to nourish and
maintain existing relations. For instance a
customer will be able to ask for hints or
assistance through social pages.
www.yourcom pany.com
12
 Price
The price for our service will be medium-high, in line with
competitors such as Jean-Louis David. In this phase of the
proposal it is not easy to predict the cost structure precisely,
so rather then using a cost-based approach, we would rely on
a so-called “external environment orientation” with the pricing
objective of creating the brand image. We think that the
perceived value for our customers will be around 30-35€ for a
male cut and 60€ for a female cut + treatment.

As we said in the previous analysis, the Explorer, Succeeder

and Reformer segments are those which we will address.
Among those, the Explorer segment is the one that will be
less willing to pay a premium price, since it is basically made
by millennials/students. A way to attract them, could be to
offer the possibility to subscribe to the salon: the more the
customer goes to the salon, the more he can get price
reductions or additional services for free. This service will
come also with the possibility to receive at home dedicated
products and accessories (e.g. shampoos, gels and so on).

www.yourcom pany.com
13
 Value Curve – Our proposal
In the attempt of building an innovative
5
proposal, we used the “4 actions
framework” of Blue Ocean Strategy.

Eliminate: we eliminated the interaction

4
with operators, which shall be reduced to
SECTION the minimum in order to let the customer
focus on the tactile, olfactory and auditory
experience
3
BREAKS Reduce: we decreased the fashionable
side of the salon, the one related to latest
fads and celebrities’ hairstyle.
2
Increase:
Input the environmental
Awesome Text Here friendly aspect
was further developed, together with the
use of natural products and the relation
1 with an healthy lifestyle
Create: our salon will welcome the
customer in an environment that is
impossible to find elsewhere in the city,
0
Price Interaction With Fashion forward Variety of Delivered Representation of Natural Products Out-of-Context inventing the combination among freedom,
Operators aspect Services Healthy Living Design
relax, mountain and hair care.
Our Proposal Aldo Coppola Jean Louis David Bull Frog L' italiano

www.yourcom pany.com
14
 Thank you
for your
attention!

www.yourcom pany.com
15