GROUP ASSIGNMENT COVER SHEET

STUDENT DETAILS
Student ID
Student name: Trần Vĩnh Luân number: 21000906
Student ID
Student name: Nguyễn Ngọc My number: 21000912
Student ID
Student name: Nguyễn Bảo Trân number: 21000547
Student ID
Student name: Phạm Thùy An number: ISB21000032
Student ID
Student name: Phạm Gia Linh number: ISB21000002

UNIT AND TUTORIAL DETAILS

Unit name: Principle of Marketing Unit number: PMk-PWB1

Tutorial/Lecture: Class day and time:
Lecturer or Tutor name: Prof. Ngo Viet Liem, Ms. Nguyen Thu Huong

ASSIGNMENT DETAILS

Title: Written Final Report – Group No.2

Length: 13 pages Due date: 07/12/2021 Date submitted: 07/12/2021

DECLARATION

✓ I hold a copy of this assignment if the original is lost or damaged.

I hereby certify that no part of this assignment or product has been copied from any other
✓ student’s work or from any other source except where due acknowledgement is made in the
assignment.
I hereby certify that no part of this assignment or product has been submitted by me in
✓ another (previous or current) assessment, except where appropriately referenced, and with
prior permission from the Lecturer / Tutor / Unit Coordinator for this unit.
No part of the assignment/product has been written/ produced for me by any other person
✓ except where collaboration has been authorised by the Lecturer / Tutor /Unit Coordinator
concerned.
I am aware that this work may be reproduced and submitted to plagiarism detection software
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database for future plagiarism checking).
Student’s signature: Vĩnh Luân
Student’s signature: Ngọc My
Student’s signature: Bảo Trân
Student’s signature: Thùy An
Student’s signature: Gia Linh
Note: An examiner or lecturer / tutor has the right to not mark this assignment if the above
declaration has not been signed.
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A. COMPANY DESCRIPTION
1. Introduction
L'Oreal Paris is a French personal care company headquartered in Clichy, Hauts-de-
Seine with a registered office in Paris. Its field concentrates on hair colour, skin care, sun
protection, make-up, perfume, and hair care.
At L’Oréal, there are six core values, which are at the heart of everything. Passion,
Innovation, Entrepreneurial, Spirit, Open-mindedness, Quest for Excellence and
Responsibility are its guidelines and its priority is to be open to new trends and ideas
from around the world, at any time, this is the most effective way to be a pioneer.
For over a century L’Oréal has been dedicated to one sole vocation: creating beauty with
the goal is to offer each and every person around the world the best of beauty and
responsibility to satisfy all beauty needs and desires in their infinite diversity. “Together,
we create the beauty that moves the world.”

2. Business portfolio

Since L’Oréal Paris was founded in Vietnam, it has focused on three main lines: Skincare,
makeup and hair care.

Figure 1. BCG growth share matrix

According to the secondary data found, L'Oreal Paris 3-in-1 Micellar Water is the best
seller with more than 570,000 products sold on Official Shopee Mall and more than
240,000 products sold on Official Lazada Mall. Therefore, the firm decided to put
makeup remover and cleansing to the star and choose L'Oreal Paris 3-in-1 Micellar Water
as a strategic product to conduct the marketing research.

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 3. Business Objectives
L’oreal Paris have set their business objectives particularly for the Micellar Water
product line: sell 50,000 products/month on online and offline sales channels with the
revenue approximately 5 billion VND/month and a growth rate of 4.8%/month.
Moreover, the monthly profit is targeted to reach 35-40% with a stable profit growth.

4. Marketing Objectives
Besides, Loreal Paris aims at increasing the degree of consumption by the frequency of
use. Next, the firm focuses on enhancing the degree of market penetration by
implementing programs such as trade marketing. Lastly, they can improve the customers
loyalty by convincing them about the product's strengths and applying exclusive
incentives.

B. COMPETITIVE ENVIRONMENT

1. Competitors

L'Oreal Paris Vietnam's direct competitors in the Micellar Water segment are: Senka,
Nivea, Pond's... Additionally, there are several indirect rivals who sell Cleansing Oil and
Cleansing Balm with the same functions.

2. Points of Parity

The product has basic functions of a makeup remover such as deep cleansing,
moisturizing, and preventing acne. Moreover, the product is reasonably priced at around
150,000 VND, which is competitive in the market.

3. Points of Difference

L'Oréal developed a Skin Color Geography to help consumers compare the effects of
products and treatments. Each product is tested on various skin types, ages and genders.
In addition, Episkin is a proprietary skin renewal technology that forecasts an
ingredient's safety and efficacy prior to its scientific evaluation. Besides, L'Oréal Paris
has adopted a novel strategy “Universalization” that recognizes and respects diversity.

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C. SWOT ANALYSIS

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D. NEW PRODUCT DEVELOPMENT
1. Defining the problem

It cannot be denied that L’Oréal Paris has developed an image of environmental

sustainability but the majority of its products for the Vietnamese market do not
indicate this.

2. Survey and marketing analysis

Up to 72.7% of participants are concerned about the environment when choosing
their cosmetics.

The percentage of people who are willing to pay extra money for an eco-friendlier
product is more than half.

➪ The customers have a rising tendency to care more about the impact of the
cosmetic products on the environment and be more willing to pay higher prices
for environmentally friendly products.

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Although L’Oréal Paris has a number of campaigns to show their awareness of
environmental sustainability, up to now, only 28% of customers have known
about them.

A majority of consumers stated neutral about the positive effects on the

environment of L’Oréal Paris products (45%) and up to 31% do not even recognize
them.

➪ The environmental campaigns are not really effective since customers do not
consider L’Oréal Paris’s products as eco-friendly.

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 3. Solution
• Launch new products more environmentally friendly.
• Boost campaigns to contribute to environmental protection.

E. Targeting, Differentiation and Positioning

1. Targeting

With the Pure Nature Micellar Water, L’Oréal Paris targets the female at the age
of 18 to 30, who have low to average income, at about 5.5 million VND/month. In
addition, because of the message of using ingredients from nature to contribute to
environmental protection, it is targeting the customers who care about the
appearance, skincare routine and environmental problems. (Based on Customer
Persona Analysis, see in Appendix).

2. Choosing a Differentiation and Positioning Strategy

Step 1: Identifying Possible Value Differences:

L’Oréal Paris differentiates themselves by differentiating their product and image.

• Product: L’Oréal Paris has used the proprietary technologies, Skin Color
Geography and Episkin, to create the safety products for all skin types.
• Image: L’Oréal Paris is successfully building a well-known brand from France
with a positive image by sponsoring lots of fashion TV shows (The Face
Vietnam, Paris Fashion Week) and magazines (Elle, L’Oréal Magazine, Vogue),
catering to the beauty demands of women through constant research and
innovation. Moreover, with the campaign “ Chính nữ”, L’Oréal has contributed
to promoting the message of gender equality and feminism.

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Step 2: Choosing the Right Competitive Advantages

L’Oréal Paris decided to focus on the Quality of the product and the Popularity of
the channel.

Firstly, L’Oréal Paris maintains the good performance of their products, especially
Pure Nature Micellar Water with the reasonable price to remain the current
customers, as well as attract new ones at low and middle segments. Moreover, the
brand has increased online sales by improving not only the official website but
also various online platforms to adapt with the tech-savvy generation. Besides,
traditional stores are customized to become more trendy, modern and convenient
to attract more customers. In the future, together with the recent distribution
channels, the brand will spread the product wider to gain more market share.

Step 3: Selecting an Overall Positioning Strategy

L’Oréal Paris decided to select “More for the Same” Strategy.

They assume that the price won’t change so much. The strategy is to improve their
products by replacing some ingredients that are unsuitable for nowadays safety
standards such as silicone or alcohol in skincare products.

Furthermore, the brand has brought more intangible values to the consumers by
giving customers the opportunity to contribute in environment protections and
enhancing people’s awareness about using green skincare products.

F. Product Concept
1. Reasons to believe
L'oreal Paris have reasons to convince their customers of the new product line. The first
reason is that the products come from a famous brand with safe ingredients, free of
mineral oil, fragrance, alcohol, parabens.

Secondly, the new line with the main ingredient from bamboo extract (Anti-oxidant,
soothes skin, evens skin tone, replenishes collagen, prevents moisture loss in the skin)
combined with other skin-beneficial ingredients such as:
▪ Tea tree - Refreshing: helps moisturize, antibacterial, anti-inflammatory,
soothes the skin, and treats acne. (For oily & sensitive skin)
▪ Aloe vera - Moisturizing: helps moisturize, soothe the skin, reduce excess oil
on the face, tighten pores. (For normal & dry skin)
▪ Coconut oil - Deep cleansing: helps moisturize, antibacterial, deep clean for
heavy makeup. ( For dry & sensitive skin)
Additionally, the new pump faucet to easily control the amount of liquid taken.

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 In order to enhance customers' trust, Loreal Paris have tested the market by sending
samples to target customers, consulting customers’ opinions with surveys and
improving their new products from the test results.

2. Three Levels of Product

First, the core customer value includes deep cleansing ability and skin protection against
makeup.

Next, the actual product has eye-catching and trendy packaging, convenient bottle design
with a new bump. In terms of quality, the company offers natural ingredients with
minimum irritation chances. And the last one is the famous and reputable brand name -
L’Oréal Paris.

Meanwhile, for the augmented product value, they provide videos with skin care tips to
customers, free shipping service and commission not to irritate even with sensitive skin.

G. PRICING STRATEGY
1. Customer value-based pricing
L’oreal Paris will choose Value-Added Pricing because the new product line has
more values from natural ingredients, also with the innovative design. With such
added values, customers will accept to pay a higher price to own the new product.

2. Cost-based pricing
In this, the brand sets prices based on the cost of the goods or services being sold.
The new version of Micellar Water costs the company a total 90,000 VND per
bottle to produce. Based on calculations on different prices, a 170,000 VND would
be the most suitable for creating profits and sales volume. (see more on appendix)

3. Competition based pricing

Compared with lower-price competitors (Senka, Nivea, etc). L’oreal Paris charges
a higher price but is acceptable for added values.
With smaller competitors (Cocoon, Zakka, etc), L’Oreal Paris has differentiated
the product’s value, also taken advantage of the brand name and offer a lower
price than most of local brands in Vietnam.
 From the analysis above, the price of 170,000 VND is the most reasonable to bring
value to customers, at the same time gain profit, high revenue and strong
competitiveness in the market.

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H. PLACE DISTRIBUTION STRATEGY
L’Oréal Paris is distributing their products to supermarkets, commercial centers,
convenience stores, and internet flatforms, providing a variety of categories and allowing
customers to learn more about brands and products.

When using these modern trades, L’Oreal Paris can also combine these two strategies to
improve sales and the popularity of the new product.

• Main shelf strategy: Because the main shelf is the area where the shelves display
the products of all suppliers of the same category and 80% of customers will purchase
in these areas, L'Oreal Paris can invest in good locations when distributing products
so that customers can easily see its products.
• Fair share strategy: the market share that the product accounts for, which reflects
the demands and needs of customers, will determine the area that it should be
displayed. L’Oreal Paris make up about 18% of the market in the micellar water sector
so 20% area for displaying the new product might be a sound option.

I. Integrated Communication Plan (based on the 6Ms model)

1. Mission
For the new line "Pure Natural Micellar", the goal of the
entire campaign is not only to promote the new products,
but also to identify them with an environmentally
responsible image.

Then, during the introduction stage, the primary

objective is to inform consumers about the products and
make them go viral while increasing brand awareness.

Additionally, at the development level, the

communication aim is to convince customers to
purchase by improving their awareness, knowledge,
preference, and so on during their buying journey*,
which aids in increasing sales volumes.

The communication's final objective is to convey a

message about environmental conservation,
demonstrating that L'Oréal Paris has always been a
sustainable brand committed to environmental
protection.

(* See more in appendix)

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2. Message

The message is "Because Our Planet is Worth It", which emphasizes the dedication
to developing cosmetics sustainability programs towards the future.

With this message in mind, from May to July 2022, L’Oreal Paris will conduct the
"Because Our Planet is Worth It" campaign, with the main concept "Why
Change?" The underlying storyline is to immerse oneself in nature to realize both the
negative alterations we have done to the ecosystem and the necessary improvements for
our planet to maintain its primordial value. Also, as part of this eco-friendly journey,
Pure Natural Micellar Water will contribute significantly through a variety of
conservation and transformation efforts to restore the world to its natural splendor.

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Video for this campaign is available on Youtube:

https://www.youtube.com/watch?v=rAihRFux4hk&t=1s

3. Communication channels and media

L'Oreal Paris plans to employ two types of communication channels to effectively

transfer the message to target customers - personal and nonpersonal channels.

When it comes to the personal channels, word of mouth will be used by giving
promotions if consumers can suggest products’ value and brand image to their friends
and family. Aside from that, L’Oreal Paris sees buzz marketing as a potential channel for
spreading product information to customers’ community by cultivating opinion leaders
with unique concerns about beauty and the environment.

In terms of non-personal channels:

3.1) Advertising

With efforts to optimize the budget while still being able to reach target audience, the
brand will use press releases with Báo Phụ Nữ and Elle Magazine as the traditional
media. Furthermore, modern media will be the mainstream focus by using search
engine advertising with specific keywords related to the campaign and product concept,
as well as running display and video ads on social media such as Facebook, Instagram,
Tiktok, and Youtube to make advertising more personal and targeted.

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 3.2) Public Relations

"14 days of green changes with Pure Nature Micellar Water" challenge will be
held as part of the PR campaign to bring people closer to the product and make it a part
of their eco-friendly lifestyle. Thus, L’Oreal Paris intends to publicize the challenge via
paid advertisements and shared content from participants on social media, as well as
aiming to generate as much earned media as possible for the value provided to society.
As a result, not only new products can go viral, but brand recognition will also benefit.

3.3) Sales Promotion

Offering 10% off each receipt or 20% off when bringing an old bottle, special eco-friendly
gifts such as tote bags and bottles, also flash sales on e-commerce platforms to increase
both awareness of the campaign and sales of the new product line.

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 4. Budget

All of these communication activities are funded with a total of 2 billion VND, with 1
billion going to advertising, the rest to public relations and sales promotion.

5. Measurement:

In order to ensure the campaign's effectiveness, each outcome would be monitored and
evaluated carefully based on some KPIs. Then, the campaign will be continuously
adjusted and developed to best capture customers’ value and improve the L’Oréal Paris
image in the mind of them.

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 APPENDICES
Appendix 1: Cost-Base Pricing

Appendix 2: Customer Journey

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Appendix 3: Customer Persona

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Appendix 4: Communication Timeline

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 REFERENCES
1. https://www.lorealparis.com.vn/

2. https://www.lorealparisusa.com/

3. https://shopee.vn/lorealparis_officialstore

4. https://www.lazada.vn/shop/loreal-paris?tab=promotion&path=promotion-31522-
0.htm&spm=a2o4n.storeSpmB.search.1.2c272f47eMocYC&_keyori=ss&from=suggest_sis
&sis_suggestion_click=L%27Oreal%20Paris%20Flagship%20Store%2CLOREAL%20&sug
g=LOREAL%20_0_1

5. https://www.loreal.com/en/news/brands/loreal-paris-sustainability-
program/?fbclid=IwAR2_yteKJHCF-
uyYvt0v580_fzIDcMInqdoEOwO5xJg_rXYz_Si4HqP8IVk

6. https://www.loreal-finance.com/system/files/2021-
03/LOREAL_2020_Universal_Registration_Document_en_0_0.pdf?fbclid=IwAR3P9RT
_4VpQV07cocq6KTKNg86HslwlxF6c_IPomy4XSoNp0mzknXjPr6g

7. https://www.loreal-finance.com/system/files/2021-
03/LOREAL_2020_Universal_Registration_Document_en_0_0.pdf?fbclid=IwAR3P9RT
_4VpQV07cocq6KTKNg86HslwlxF6c_IPomy4XSoNp0mzknXjPr6g

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