Advertising & Marketing Communication

MKT 470

Tutor: Daniel Valentine

Paper Type: Advertising Campaign

By

Melis Yurtbay

S00603718

ADVERTISING CAMPAIGN FOR

L’Oreal Galaxy No Ammonia Hair Colorant

0

Table of contents

1.

Introduction.....................................................

.................................................................

.........2

2. Environmental

trends...........................................................

.....................................................3

2.1. Issues and

opportunities....................................................

.........................................4

2.2. Decision-making process

(DMP)............................................................

.....................4

3.

Objectives.......................................................

.................................................................

..........5

3.1. Corporate and marketing

objectives.......................................................

...................5

1

3.2. Marketing communications

objectives.......................................................

...............5

4. Segmentation, targeting and

positioning......................................................

............................6

4.1. Segmentation and

targeting........................................................

...............................6

4.2.

Positioning......................................................

............................................................7

5. Campaign

strategy.........................................................

...........................................................7

5.2. Draw

attention........................................................

....................................................7

5.3. Create

interest.........................................................

....................................................8

5.4. Create

desire...........................................................

....................................................9

2

5.5. Generate

action...........................................................

................................................9

6.

Budget...........................................................

.................................................................

..........10

7. Design of the magazine

advertisement....................................................

...............................11

8. Monitoring the Campaign.......................................................................................................12

9.Conclusion and recommendation............................................................................................12

Bibliography.................................................................................................................................13Appendices...................................................................................................................................15

3

1. Introduction

The following report develops a marketing communication campaign

for the launch of L'Oréal Galaxy semi-permanent no ammonia hair

colorants in flashy colours such as flashy galaxy colours such as

Mars Volcano Orange, Venus Pink, Pluto Blue and Whirlpool Navy.

The main marketing activities include the traditional print and

TV advertisements as well as digital advertising, outdoor

advertising, sales promotion and direct marketing. These

activities will be accompanied with celebrity endorsements.

L’Oréal is the world leader in beauty. Its Consumer Products

Division is winning market share in hair care and hair colorants

and contains to prove dynamic with market shares gains in Western

Europe (L’Oréal Financial Report, 2014). The company has a wide

range of target audiences and its brands are distinctly segmented

across pricing tiers and target audiences (Euromonitor, 2012).

For L'Oreal the key pillars when it comes to ‘content’ are

education, empowerment and inspiration (Kristen Coming, VP of

integrated marketing communications at L'Oreal Paris). The

company commonly uses TV adverts as they are important

communication channels for the cosmetic industry. The company

also relies heavily on online video tutorials as well on

celebrity endorsement. Some of the celebrities included in their

campaigns include Eva Longoria, Beyoncé, Gwen Stefani and

Jennifer Lopez.

4

Figure 1. Beyonce Knowles for L'Oreal Paris

5

Table 1. Company overview

History Founded by Eugéne Schueller in 1909 and

headquartered in Paris, France.

Industry L'Oréal SA specializes in the manufacture and sale

of beauty and hair products. It operates through

several segments including Professional Products,

Consumer Products, L'Oréal Luxury, and Active

Cosmetics.

Portfolio Hair care, colouring, skin care, make-up and

perfume.

Mission To provide the best in cosmetics innovation to

women and men around the world with respect for

their diversity.

CEO Jean-Paul Agon

Employees 77,400

Sales in

2013

€22.98 billion

Global

market share

2011

9.7%

Source: Adapted from L’Oréal Website

2. Environmental trends

6

Environmental trend analysis is essential component of an

effective competitive market planning process (Reidenbach and

Goeke, 2006, p.167) and therefore is necessary for the

development of this advertising campaign.

2.1. Issues and opportunities

The hair and beauty industry employs nearly a quarter of a

million people across the UK and despite the continuing economic

uncertainty the industry remains positive. Procter & Gamble Co

retained the leadership position in hair care, with a value share

of 25% of total sales, followed by L’Oréal with 21% of total

value sales (Euromonitor, 2014).

With competition intensifying in most hair care categories,

manufacturers have tried to keep up with demand by expanding

their product ranges, adding ingredients to their original

formulas and positioning the end products accordingly

(Euromonitor, 2014). Shampoos and conditioners, in particular,

are offered in a wide range of bottle colours, with a different

colour used for each formula, with most making claims about what

benefits the product brings to the users’ hair, usually within 2-

4 weeks (Euromonitor, 2014).

The main threat comes from the rising trend in sales of organic

beauty products in the UK (Appendix 1). The main opportunities

for the marketing of this product are associated with the

increase in spending in the health and beauty market in the UK

(Appendix 2); the frequent usage of hair colorants in the UK

7

(Appendix 3 and 4); and the positive brand image of L'Oréal in

the UK (ranked second after Clairol which however does not

specialise in semi-permanent flashy colours).

2.2. Decision-making process (DMP)

The consumer decision-making process consists of five phases

including need recognition, information search, and evaluations

of alternatives, purchase and post-purchase behaviour. The

possible consumer-decision making process among consumers of

L'Oréal’s hair colorants starts with the recognition of the need

to change the hair colour, by the need to dye the hair because of

grey hairs or because the consumer has ran out of hair colorants.

Hair colorants are considered as high-involvement products

because they are perceived as high risk situations (Saxena, 2005,

p.156) and for this reason consumers will conduct extensive

information search. At this stage the consumer may receive

information from marketing-controlled resources, such as TV or

print advertisements etc. They can also conduct internal

information search such as past experiences with hair colorants.

Consumers who had positive experience with a product are more

likely to limit their search to products related to their

positive experience (Lamb, Hair and McDaniel, 2011, p.193) and

therefore if consumers have already had positive experience with

L'Oréal products it is likely that they will focus on these

products. The next stage is the search for alternatives and in

our case the potential alternatives are the colorants from

8

Schwarzkopf, Manic Panic, and BLEACH's Hair Crayons. Schwarzkopf

and Wella products are also ammonia-free but do not have as broad

colour range as L'Oréal whereas Manic Panic products contain

ammonia and BLEACH's Hair Crayons are only intended for colouring

streaks. Therefore, these brands might fall into the inept set,

i.e. set of products that are unacceptable by the consumer. The

final purchase decision can be disrupted by negative feedback

from other customers or the level of motivation to comply or

accept the feedback (Kotler et al. 2009, p.4). After purchasing

and using the L'Oréal semi-permanent colorant the consumer is

satisfied with the product’s performance and matches their

expectations which increases the probability to purchase the

product on the next occasion (Tyagi and Kumar, 2004, p.65).

3. Objectives

3.1. Corporate and marketing objectives

To win one billion new consumers by 2020/2025 (Annual Report

2013) To match each countries and regions consumer’s tastes at the

right priceTo launch semi-permanent hair colorants by September 2015 To place L’Oréal’s semi-permanent hair colorants among the top

3 semi-permanent colorants

3.2. Marketing communications objectives

9

The AIDA (attention, interest, desire and action) marketing

communication model is applied in order to determine the

communications objectives.

Informing/reaching 5 million consumers Increasing brand awareness from 30% to 60% among target

customers Educating customers about the products benefits Persuading customers to use the product Motivating trial use and encouraging repeated purchase through

sales promotions

4. Segmentation, targeting and positioning

4.1. Segmentation and targeting

L'Oréal will apply geographic, demographic, psychographic and

behavioural segmentation in order to target the segment

categories more effectively. The target audience is UK based

customers. Demographically, the target audience for the campaign

are young women under 35. In terms of their psychographic

characteristics the target customers are self-confident, hip

young women who are confident in drawing attention to themselves.

On the basis of the behavioural segmentation the potential target

consumers are those who use hair colorants more for fashion and

less for covering gray.

4.2. Positioning10

In order to differentiate its product L'Oréal will position its

semi-permanent bright colours on the basis of user imagery, on

the pricing and on the head-on competition (Saxena, 2005, p.286).

The positioning is illustrated in Figure 2. The products will be

positioned in terms of the user imagery and in terms of the kind

of people that use them (Barker, Valos and Shimp, 2012, p.91).

This type of positioning amounts to associating the product with

icon-like representations of the kind of people portrayed in the

advertisements as being typical users of the product (Barker,

Valos and Shimp, 2012, p.91). The main competitors are Wella,

Schwarzkopf, Manic Panic and BLEACH's Hair Crayons.

Figure 2. Positioning of L'Oréal semi-permanent bright colours

11

High

5. Campaign strategy

The campaign strategy will be enforced via various communications

channels including social media, TV advertisements, print

advertising, Internet advertising, celebrity endorsement, sales

promotions and direct marketing.

5.2. Draw attention

It has been claimed that the classical brand marketing reached

its peak which is why businesses started embracing guerrilla

marketing (Levinson, 1994, p.4). The main thing that

differentiates guerrilla marketing from the traditional marketing

is that the focus changes from the volume of advertising to the

impact of the message (Levinson, 1994, p.4). For these reasons

the present campaign plans to make use of guerrilla marketing in

the first stage of the marketing communication strategy. For the

purpose of drawing attention and increasing the impact on

12

High

(Quali

Low

(Quality)

customers a lama coloured in purple will be taken on tour in

London. Images and videos from the event will be launched on

Facebook, Twitter (#L'Oréal_pink_lama), Pinterest and Instagram.

The social media channels will be used because they encourage

customer interaction and enhance opportunities for word-of-mouth

communication (Tuten, 2008, p.77-121). The second activity will

take place in high-frequency locations in London where young

women will be approached by ‘virtual hairstylers’. The

‘hairstylers’ will take pictures from passers-by and will upload

them, and the passers-by will be able to choose from a variety of

hairstyles and from the colour range of L'Oréal Galaxy.

5.3. Create interest

In the second stage the campaign will target its segments in

order to capture target customers’ attention about the products.

The main channel for this purpose is the advertisement featuring

Lady Gaga, which will be broadcasted on TV and the Internet. In

addition, customers will be given an exclusive backstage pass by

broadcasting go-behind scenes from the casting of the

advertisement. How-to videos and tutorials about the use of

L'Oréal Galaxy hair colorants will be launched on the social

media networks and on the website of the company. Print

advertisements will also be used to market the product because

magazines are important marketing channel for young women and

girls. Women buy nearly 7m fashion and lifestyle magazines every

month and 38% of women trust magazines (Saner, 2010). Therefore,

13

in order to reach this target group the digital marketing

channels need to be complemented with advertisements in the most

popular UK magazines and these are Hello Magazine, OK Magazine,

Glamour, InStyle, Cosmopolitan, Elle.

In order to be in line with its user imagery positioning the

advertisements about L'Oréal Galaxy should depict the hair-

colorants in terms of the kind of people that use them.

Therefore, the main feature of the print and the Internet

advertisements for these products will be the facial portrayal of

Lady Gaga with her hair coloured in blue which spills over into

purple and pink. Lady Gaga is a 28 years old attractive young

woman who is known for her daring look and self-confidence. In

this way Lady Gaga will symbolise the target market of these

products – young, self-confident women who are keen on showing

how unique and different they are.

All of the advertisements in magazines, online and in television

will be consistent in terms of their content and visual elements,

that is, they will feature Lady Gaga, the product’s

characteristics/benefits and the product’s logo ‘Offbeat’.

Consistency needs to be maintained across all marketing channels

because the digital channels are just extension of the offline

channels (Keillor, 2007, p.191).

5.4. Create desire

Emotional appeal will be created by using the company’s slogan

“Because we're worth it” because it applies to the rise of women

14

and encourages them. Encouragement and empowerment will be

additionally reinforced when Lady Gaga pronounces these words

because she is known for her self-confidence and empowerment of

young people. The expression ‘Offbeat’ will be placed on the

advertisements in order to reinforce the association with

unconventional thinking, self-confidence and courage.

5.5. Generate action

At this stage customers will be provided with product samples at

the biggest retailers, Boots and Superdrug. Sales promotion is

also applied at this stage because it can reduce the consumer’s

risk of trying something new (O'Guinn et al., 2014, p. 309). The

sales promotion method is ‘Buy 1 Get 2’ half price promotion and

will be conducted at the above stores and at the supermarkets

Sainsbury’s, Tesco and ASDA through aisle interrupter. The BOGOF

(Buy one get one free) method is chosen because it is very often

applied in the beauty industry and is successful in stimulating

purchase and in selling the remaining stocks. In addition,

samples of the product will be distributed in all of the 50

professional salons in London with which this brand is in

partnership.

Given that L'Oréal uses direct marketing alongside other

marketing tools the present campaign (Dibb, 2012, p.131) will

also follow this approach. See-through envelopes that will

reveal the new colours will be sent to 25 000 addressees

including a 1£-discount coupon which will serve for marketing

15

intelligence purpose because the company will gain insight into

the purchases made by the consumers (Dibb, 2012, p.131).

6. Budget

The campaign costs and the Return on Marketing Investment (ROMI) are displayed in Table 2.

Table 2. Campaign ROMI

Expenditure Feb March April May June

July Aug Sept Oct Nov Dec Total

Website and online (hosting) £30.00 £30 £30 £30 £30 £30 £30 £30 £30 £30 £30 £330.00Direct marketing- envelopes £0.00

£5,000 £0 £0 £0 £0 £0

£5,000

£5,000

£5,000

£5,000

£25,000.00

MagazinesadsHello

(300+200) £3,000£1,20

0 £0.00 £0.00 £0 £0 £0 £0 £0 £0 £0£4,200.0

0InStyle

£3,000£2,40

0£2,400.00

£2,400.00

£2,400 £0 £0

£2,400

£2,400

£2,400

£2,400

£22,200.00

Ok Magazine £3,840

£1,920

£1,920.00

£1,920.00 £0 £0 £0 £0 £0 £0 £0

£9,600.00

Elle£5,400

£2,400

£2,400.00

£2,400.00

£2,400 £0 £0 £0 £0 £0 £0

£15,000.00

Cosmopolitan £5,400

£2,400

£4,800.00 £0.00 £0 £0 £0 £0 £0 £0 £0

£12,600.00

TV ads£104,0

00£104,000

£104,000.0

0£104,000.00

£104,000 £0 £0 £0 £0 £0 £0

£520,000.00

Guerilla 1- Virtual Hairstylers £0

£3,500 £0.00 £0.00 £0 £0 £0 £0 £0 £0 £0

£3,500.00

Guerilla 2 - Lama £0

£4,000 £0.00 £0 £0 £0 £0 £0 £0 £0

£4,000.00

Sample distribution - Boots, Superdrug, hair salons £0 £500

£500.00 £0.00 £0 £0 £0 £0 £0 £0 £0

£1,000.00

Sales promotion'Buy 1 Get 2' £0 £0 £0.00 £0.00 £0 £0 £0 £0

£3,000

£3,000

£3,000

£9,000.00

16

Total £626,430.00

MarketingInvestment

£ 626,430.00

Total units sold

150,000

Price per unit £6Total revenue

£900,000.00

ROMI £273,570.00

17

7. Design of the magazine advertisements

18

‘OFFBEAT’ serves to reinforce the association with unconventional

Consumers are informed about the functional

Her electrifyinghairstyle is complemented with striking

8. Monitoring the Campaign

In order to measure the advertising campaign, Facebook Page and

Community for L’Oreal Galaxy will be established. This strategy

will give us a measurable value of how many people involves,

likes, and post the product. Also, Customers will be offered

quick surveys about product and its performance of channels. This

survey will include questions about communication channels,

retail channels, where magazines and media channels. This will

help to reshape the missing point of campaign for the next

campaign revision

9. Conclusion and recommendation

The Offbeat campaign for L'oréal semi-permanent colorant in

flashy colours is integrated communication strategy targeting

young women based in London. The campaign stages are determined

by the AIDA communication model, that is, by the cognitive

process consumers usually go through when making a purchase. The

campaign should start 3 months before the launch of the product,

which is planned for March. The timeline for the campaign

activities is summarised under Appendix 5. Two ethical issues

could arise from the present campaign. Namely, the dyeing of the

lama may be considered offensive to animal rights activists.

Moreover, some people may consider hair colorants unsuitable for

19

the young consumer and believe that they should be reserved for a

later age.

20

Bibliography

Barker, N., Valos, M. and Shimp, A.T. (2012) Integrated MarketingCommunications. Australia: Cengage Learning.

Dibb, S. (2012) Marketing Briefs: A Revision and Study Guide. Oxford:Routledge.

Euromonitor (2014) Hair Care in the United Kingdom. Available at: http://www.euromonitor.com/ (Accessed 01 November 2014).

Euromonitor (2012) L'ORÉAL Company profile – Swot analysis.Available at: http://www.euromonitor.com/ (Accessed 05November 2014).

Keillor, D.B. (2007) Marketing in the 21st Century: Integrated marketingcommunication. USA: Greenwood Publishing Group

Kotler, P., Keller, K.L., Koshy, A. and Jha, M. (2009) MarketingManagement – A South Asian Perspective. 13th ed. India: PrenticeHall.

Lamb, C., Hair, J. and McDaniel, C. (2011) Essentials of Marketing.Mason: Cengage Learning.

Levinson, C.J. (1994) The Guerrilla Marketing Handbook. New York:Houghton Mifflin Harcourt.

L'Oréal Website. Available at: www.loreal.co.uk (Accessed 15October 2014).

L'Oréal 'Annual Report (2013) Available at: http://www.loreal-finance.com/eng/annual-report (Accessed 15 October 2014).

L'Oréal Half-Year Financial Report (2014) Available at:http://www.loreal-finance.com/eng/half- year-results (Accessed 20October 2014).

21

O'Guinn, T., Allen, C., Semenik, R. and Scheinbaum, C.A. (2014)Advertising and Integrated Brand Promotion. Stamford: CengageLearning.

Saner, E. (2010) ‘Women’s magazine sector is bullish about thefuture’. The Guardian, 11 October 2010. Available at:http://www.theguardian.com/media/2010/oct/11/womens-magazines-bullish-future (Accessed 05 November 2014).

Saxena, R. (2005) Marketing Management. New Delhi: Tata McGraw-HillEducation.

Statista (2014) Available at: www.statista.com (Accessed 10November 2014).

Tyagi, C.L. and Kumar, A. (2004) Consumer Behaviour. Delhi: AtlanticPublishers & Dist

Tuten, L.T. (2008) Advertising 2.0: Social Media Marketing in a Web 2.0 World.Westport: Greenwood Publishing Group.

Reidenbach, E.R. and Goeke, W.R. (2006) Competing for Customers andWinning with Value: Breakthrough Strategies for Market Dominance. USA: ASQQuality Press.

Yurtbay, M. (2014) Proposal for Advertising Campaign, L’Oreal semi-permanent colorant in pastel colours. London

22

Appendices

Appendix 1. Sales value of certified organic health and beauty

products in the United Kingdom (UK) from 2008 to 2013 (in million

GBP)

Source:

23

http://www.statista.com/statistics/308393/organic-health-and-

beauty-product-sales-in-the-united-kingdom-uk/

Appendix 2. Change in spending on health and beauty in the UnitedKingdom (UK) in 4th quarter 2013, by channel (in million GBP)

Source: http://www.statista.com/statistics/304531/health-and-beauty-spending-growth-united-kingdom-uk-by-channel/

Appendix 3. Number of women using hair colourants, bleaches and lighteners (used at home) in the United Kingdom (UK) in 2013, by frequency of use (in 1,000)

24

Source: http://www.statista.com/statistics/302791/hair-colouring-products-for-women-usage-frequency-in-the-uk/

Appendix 4. Number of women using hair colourants, bleaches and lighteners (at home) in the United Kingdom (UK) in 2013, by user type (in 1,000)

Source: http://www.statista.com/statistics/302773/hair-colourant-bleach-and-lightener-usage-by-user-type-in-the-uk/

25

Appendix 5. Timeline for campaign activities

FEBRUAR

Y MARCH APRILMAY

JUNE

JULY

AUG

SEP

OCT

NOV

DEC

W1 W2 W3W4

MEDIA STRATEGYInternetWebsiteSocial Media

Direct MarketingStage 1 - Launch PackStage 2 - Sending envelopes

Above the LineAdvertisingMagazines

Hello MagazineGatefoldStandardInStyleGatefoldStandardOK MagazineGatefoldStandard

26

ElleGatefoldStandardCosmopolitanGatefoldStandardTV advertismentsGuerilla MarketingVirtual hairstylersPink LamaBelow the lineAdvertisingBoots and SuperdrugHair salons inLondon 'Buy 1 Get 2'

Evaluation & ControlBecause Galaxy colours are bright as galaxy we are aiming to Launch the Galaxy Series DuringMarch just before the weather getting warm

27