DIGITALWARRIORSBrandstorm2016

ANDREALERICHEDEANWILSONBYRONFRYMORNEPIENAAR

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TABLEOFCONTENTS1. Define the Challenge……………………………………………………...………………………3 2. Background……………………………………………………………………………….…………4

2.1. The la roche-posay story .................................................................................................... 4

2.2. The industry ......................................................................................................................... 14

2.3. The consumers ................................................................................................................... 27

2.4. The competitors ................................................................................................................. 40 3. Analysing the brand and the consumer……………………………………………..………58

3.1. The consumers relationship with competitors ................................................................ 58

3.2. What media do consumers consume ............................................................................ 60

3.3. What do consumers currently think, feel and do .......................................................... 61

3.4. Who is the target market .................................................................................................. 62

3.5. Consumer insights and action points .............................................................................. 63 4. SWOT Analysis and Key Issues…………………………………………………………..……….65 5. Defining the role of communication…………………………………………………………....70 6. Defining the target audience……………………………………..……………………………..71

6.1. Segmenting the market .................................................................................................... 71

6.2. What we want customers to think feel and do ............................................................. 74

6.3. Insights ................................................................................................................................ 75

6.4. What contact points must be established ..................................................................... 76 7. Defining the positioning…………………………………………………………………..……….77

7.1. What s la roche-posay’s positioning ............................................................................... 77

7.2. Key message and key benefit ......................................................................................... 78 8. Strategy………………………………………………………………………………………………79

8.1 Big idea ............................................................................................................................ 79

8.2. Consumer journey .......................................................................................................... 81 9. Reference list………………………………………………………………………………………..83

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1. DefinetheChallengeThe challenge given to us by L’Oréal was as follows:

Help the brand on how to attract and recruit new young consumers to the brand (15 to

25 years old). What Digital communication/ services/ strategy can you come up with to

stay close to the brand commitments whilst innovating and addressing the next La

Roche-Posay generation?

In this case the business problem was an opportunity to target a new generation of La

Roche-Posay users.

The biggest challenge we are faced with is the fact that skin care is the furthest thing

from the given target market’s mind. This problem can be solved through making the

brand of La Roche-Posay appeal to this target market’s taste.

In order to tackle this challenge, we divided the challenge into two missions. The first

mission was to get to know the health and beauty market and its main trends and

opportunities. Our second mission was to turn our ideas into insights and come up with a

connected and digital innovation strategy on how to recruit the 15-25 year old market.

Only then were we able to develop an integrated strategy to attract a new generation

of La Roche-Posay consumers through technological and digital disruption.

Another challenge we faced, was the fact that La Roche-Posay is not available in

Africa, so we could not test consumers feeling towards the brand. Although, we could

test consumers opinions and feelings about competitor’s brands and that is what we set

out to do in this challenge.

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2. Background

2.1. THE LA ROCHE-POSAY STORY 2.1.1. The La Roche-Posay History La Roche-Posay was born in France, which is the top European center of thermal

dermatology (La Roche-Posay, 2016). According to La-Roche Posay (2016) they offer

dermatological skincare thanks to thermal spring water, which is a powerful source of

antioxidant protection. La Roche-Posay’s unique dermatological heritage inspired their

unique formulation charter (La Roche-Posay, 2016). La Roche-Posay (2016) noted that

their products are clinically proven effective under dermatological control and is tested

on sensitive skin. La Roche-Posay’s products are developed with dermatologists and

the products have a high concentration of active ingredients that are all strictly

selected for their safety (La Roche-Posay, 2016). La Roche-Posay (2016) indicated that

their products include dermatological acne control, advanced sunscreen protection,

sensitive skincare and corrective aging.

“Recommended by over 25,000 dermatologists worldwide, La Roche-Posay skincare is

formulated with high efficacy and safety standards in a full range of products to

address skin needs, even sensitive skin” (La Roche-Posay, 2016). According to La

Roche-Posay, the products are dermatologically tested and suitable for even sensitive

skin. La Roche-Posay is committed to making dermatological skin care available to their

customers (La Roche-Posay, 2016). La Roche-Posay (2016) mentioned that this is

possible as the partner with dermatologists. Their partnership extends to dermatologists

being present during the development of the brand, as well as them recommending

the brand. La Roche-Posay (2016) stated that the brand is committed to offering highly

effective products. Not only are the products effective, but they are also tolerated by

sensitive skin (La-Roche-Posay, 2016). La Roche-Posay (2016) further stated that their

products can “improve the quality of life of anyone with skin concerns, from acne to

aging, and to help spread the word on sun safety through high quality sunscreen and

skin cancer awareness messaging”.

“Deep-rooted in dermatological heritage, La Roche-Posay skin care products are

developed according to a strict formulation charter to combine safety and efficacy”

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(La Roche-Posay, 2016). La Roche-Posay (2016) noted that their unique formulation

charter includes proven effective ingredients, recognized by dermatologists, soothing

antioxidant thermal spring water, ingredients that are compliant with sensitive skin,

allergy tested, packaging designed to minimize possible contamination and quality

guaranteed by use-by date. La Roche-Posay makes sure that these criteria are met by

testing their products with the industry’s most demanding protocols (La Roche-Posay,

2016). La Roche-Posay (2016) concluded that “today, La Roche-Posay is

recommended by over 25,000 dermatologists worldwide and sold in over 50 countries”.

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2.1.2. La Roche-Posay Products L’Oréal (2015) mentions that as a public utility since 1897, the thermal spring water from

La Roche-Posay, naturally antioxidant, soothes and softens the skin with a unique

concentration of selenium. According to L’Oréal (2015) its clinically proven results have

made it today, the top European center of thermal dermatology. L’Oréal (2015) states

that for over 40 years, La Roche-Posay has worked with dermatologists throughout the

world to invent skincare and make-up products that meet their needs and

requirements.

Figure 1: Product Offerings

(L’Oréal, 2015)

L’Oréal (2015) suggests that La Roche-Posay is a reference in the development of

minimalist formulas dedicated to sensitive skin. L’Oréal (2015) says that a rigorous

selection of beneficial concentrated active ingredients is carried out, excluding any

potentially irritating ingredients. According to L’Oréal (2015) the formulas are also

paraben-free, fragrance-free and hypoallergenic. La Roche-Posay products are

dermatologist tested on atopic or reactive skin allergies (L’Oréal, 2015).

Product offerings

Skin care

Make-Up

Hair Care

Body Care

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Figure 2: Product Offerings

(L’Oréal, 2015)

L’Oréal (2015) goes on to state that since its founding in 1995, the Foundation La Roche-

Posay has awarded more than 100 fellowships for dermatology research on four

continents. The brand is also engaged, in partnership with dermatologists, in several

awareness campaigns on the prevention of skin cancer (L’Oréal, 2015). L’Oréal (2015)

mentions that the most popular brands are: Lipikar, Anthélios, Effaclar, Tolériane,

Hydraphase, Redermic, Substiane, Respectissime, Novalip Duo, Toleriane Teint.

According to La Roche-Posay (2016) La Roche-Posay is committed to making

dermatological skin care accessible to those who need it, by partnering with

dermatologists from the development to the recommendation of our skin care

products. Raton (2015) states that they are committed to offering highly effective

products that can be tolerated by even sensitive skin to improve the quality of life of

anyone with skin concerns, from acne to aging, and to help spread the word on sun

safety through high quality sunscreen and skin cancer awareness messaging.

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Figure 3: Product Offerings

(L’Oréal, 2015)

Raton (2015) states that their naturally soothing and antioxidant Thermal Spring Water is

at the origin of their brand. Discovered centuries ago in the town of La Roche-Posay,

France, it has been recognized by the scientific community for its skin care properties

thanks to its high content in Selenium, a rare and powerful natural antioxidant (Raton,

2015).

Face Care

• Sensitive, dehydrated skin

• Dry to very dry skin

• Intollerant skin • Skin prone to redness

• Oily skin with imperfections

• Signs of age and wrinkels

• Pigmentation problems

• Irritated skin • Sebaceous Scaly Patches

• Skin sensitive to shaving

• Products for children's skin and the sun

Body Care

• Dry irritated and a topic skin

• Dry and uncomfortable skin

• Dry and rough skin

• Allergy prone skin

• Products for sun for everyone

Hair Care

• Dandruff • Hair Loss • Sensitive Scalp

Make-Up

• Complextion correction

• Foundation and sensitive skin

• Products for sensitive eyes

• Products for lips • Products for nails

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Figure 4: Product Offerings

(L’Oréal, 2015)

Since 1905, this exclusive water has been used at the La Roche-Posay Thermal Center,

Europe’s leading Center of Thermal Dermatology, with over 7,500 patients visiting each

year to experience the properties of the water (Raton, 2015).

La Roche-Posay has a wide range of products due to a very demanding market. The

current market have different demands for different skin types which La Roche-Posay

aim to treat on a different basis depending on the skin type and potentially the skin

problem. What this means for La Roche-Posay is that they have branched out their

products and created a wide array of different product types.

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2.1.3. La Roche-Posay Promotions La Roche-Posay are involved in several awareness campaigns to prevent skin cancer

(L’Oréal, 2016). The “Become a skin checker” campaign involves educating

participants on risks of skin cancer and how they can prevent it from happening (La

Roche-Posay, 2015). They got dermatologists involved who volunteer their time to

check for moles and raise participants awareness of the risks of exposure to the

dangerous rays from the sun and give tips to keep them safe (La Roche-Posay, 2015).

Almost 30 countries are involved in promoting the prevention of skin cancer in their

region (La Roche-Posay, 2015). On their website they provide information and facts on

skin cancer and how to prevent it (La Roche-Posay, 2015). They also give you the

opportunity to become a skin checker and provide information on how to become

one (La Roche-Posay, 2015).

The campaign involves an emotional and allegoric video of Dalmatians who check

each other (L’Oreal, 2015). According to L’Oreal (2015) this is inspired by a very simple

observation where we take better care of our loved-ones’ health than we do our own.

Figure 5: Promotions

(L’Oréal, 2015)

La Roche-Posay offer online promotions, which include free shipping for members who

spend more than $45 (La Roche-Posay, 2015). They also have a skincare routine for

sensitive skin, which involves a combination of Toleriane Purifying Foaming Cream,

Toleriane Ultra and Anthelios 50 Face Mineral Tinted Sunscreen (La Roche-Posay, 2015).

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Normal price of these products are $94.44 and if you enter the code sensitive at the

checkout of the purchase you get it for $58 (La Roche-Posay, 2015).

They are also running a promotion on Skincare Routines for Wrinkles & Dark Circles,

which include a combination of Mela-D Pigment Control Cleanser, Redermic [R],

Redermic [R] Eyes and Anthelios 50 Daily Anti-Aging Primer with Sunscreen (La Roche-

Posay, 2015). Enter a code at the checkout and you get it at a discounted price (La

Roche-Posay, 2015).

Figure 6: Promotions

(L’Oréal, 2015)

Another promotion, which they are running is a Skincare Routine for Dehydrated Skin

where the normal value is $91.97 and you, get it for $65 if you enter the code at the

checkout (La Roche-Posay, 2015). The value routine includes Physiological Cleansing

Gel, Hydraphase Intense Eyes and Hydraphase Intense Light (La Roche-Posay, 2015).

L’Oréal also launched the new stretchable skin sensor, My UV Patch, through La Roche-

Posay (L’Oreal, 2016). It is the first ever stretchable skin sensor that can monitor UV

exposure and educate customers on sun protection (L’Oreal, 2016). “The patch is a

transparent adhesive that, unlike the rigid wearables currently on the market, stretches

and adheres directly to any area of skin that consumers want to monitor” (L’Oreal,

2016).

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When taking a picture of the patch and posting it on the My UV Patch mobile app it will

analyse the varying photosensitive dye squares to determine the amount of UV

exposure received (L’Oreal, 2016). The patch will be available to consumers later this

year (L’Oreal, 2016).

With a big push to cure cancer and with a large portion of the world suffering from

cancer La Roche-Posay focused a big campaign on the determining of whether

someone does or doesn’t have skin cancer. This has caused La Roche-Posay to focus

their promotions on making consumers aware of the checking of skin cancer and

helping consumers realise they can catch it early if checked regularly.

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2.1.4. La Roche-Posay Price

La Roche-Posay makes use of product line pricing strategy, which is the practice of

setting prices for multiple products that a company offers in coordination with each

other (Ashe-Edmunds, 2016). Ashe-Edmunds (2016) noted: “Rather than looking at each

product separately and setting its price, product-line pricing strategies aim to maximize

the sales of different products by creating more complementary, rather than

competitive, products.”

La Roche-Posay products pricing range from $12 to $70, which indicates the product,

line pricing that they make use of for their multiple different products (La Roche-Posay,

2016).

The price for L’Oreal products in South Africa at the moment will be expensive due to

the current economic crisis happening in South Africa at this point in time. The

exchange rate in South Africa at the moment has reach an all time high of 16.84 to the

Dollar in January this year meaning prices have gone up a considerable amount, not

only in the cosmetics industry. Of course this all results in a very small group of people

that can afford these products, meaning that L’Oreal is now a luxury item that only the

upper class can afford.

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2.2. THE INDUSTRY The beauty industry comprises out of a diverse, yet interrelated set of business lines

(Franchise Help, 2016). According to Franchise Help (2016) the industry helps consumers

to look and smell their best. The industry comprises out of far more than cosmetics and

skin care products (Franchise Help, 2016). Franchise Help (2016) noted that cosmetics

and skin care products still hold a large portion of the cosmetic market. Such a large

variety and diversity of products exist, because consumers demand it (Franchise Help,

2016).

“The beauty industry continues to expand globally, with some projections claiming 8.5%

growth by 2014; revenue growth in 2010 is estimated at 3.3%” (Franchise Help, 2016).

Franchise Help (2016) stated that there is several trends that support this expansion and

that will continue to ensure the profitability of the industry. Consumers’ income per

capita is rising globally, and these consumers are spending a large portion of this

discretionary income on cosmetics (Franchisee Help, 2016). According to Franchise

Help (2016) the fastest growing segment of the beauty industry are products and

services that are aimed at men.

The industry’s consumers tend to be very brand loyal (Franchise Help, 2016). Franchise

Help (2016) noted that they often share their experiences through word of mouth. “58%

Of those surveyed claimed that personal recommendations weigh more heavily than

celebrity marketing, and only 44% bought a particular product for its claim of specific

product attributes” (Franchise Help, 2016). Franchise Help (2016) further noted that

these products gain a level of familiarity and comfort from the consumer, which makes

them less likely to switch brands.

Finn (2016) stated that the industry experiences continued growth and expansion, both

locally and globally. There is an estimate of 750 companies that operate in the personal

care section and they produce combined annual revenue of over $40 billion (Finn,

2016). Finn (2016) further noted that the largest companies generate about 70% of the

entire revenue. The market leader still experiences some form of competition from

smaller companies that offer specialized products (Finn, 2016).

Some of the industry leaders include Johnson & Johnson, Estee Lauder, L’Oreal and

Revlon (Finn, 2016). According to Finn (2016) companies within the industry formulate,

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manufacture and sell a wide variety of beauty and personal care products that can be

divided into different categories.

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2.2.1. Structure of the industry

Romanowski (2016) noted that the beauty industry could be divided into 5 primary

sections: hair care, skin care, fragrance, make-up and other. The hair care market holds

20% of the beauty market share, skin care 27%, fragrance 10%, make-up 20% and other

23% (Romanowski, 2016). According to Romanowski (2016), market researchers often

break these 5 segments into smaller segments.

Hair Care

About 20% of all cosmetic products that are sold, are hair care products (Romanowski,

2016). Romanowski (2016) noted that shampoo holds the biggest share within this

market, as nearly all consumers use shampoo. Other segments include conditioner,

styling products, hair color and relaxers (Romanowski, 2016). Romanowski (2016) stated

that the biggest players in this category are Pantene and L’Oreal.

As mentioned before, the most frequently purchased products, are those designed to

move things from the consumer’s hair (Romanowski, 2016). Romanowski (2016) noted

that this includes liquid as well as powdered forms of shampoo. This category also

includes specialty shampoos that can be purchased over the counter that treat

conditions like dandruff and hair loss (Romanowski, 2016). According to Romanowski

(2016) hair conditioners falls in a separate category as it is rinsed off, but is leaves

behind a material that improves the condition of the hair.

Another category is those products that are meant to be left in the hair (Romanowski,

2016). Romanowski (2016) noted that this includes styling products like hairspray,

mousse, leave-in conditioner, putties and more.

The final category is reactive hair products that chemically change the make-up of hair

to change the way that is looks (Romanowski, 2016). Romanowski (2016) concluded

that this refers to perms, hair colors and relaxers.

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Skin Care

The skin care market offers a diverse range of products, and holds 27% of the market

(Romanowski, 2016). According to Romanowski (2016) this includes moisturizers,

cleansers, facial products, anti-acne, anti-aging and sun care products. The biggest

companies in this market are Olay and Vaseline (Romanowski, 2016).

According to Sofeminine (2016) “cosmeceuticals are skincare products which are on

the edge between medical/pharmaceutical products and those which have a

cosmetic benefit”. These products are often not available on the shelf, but stocked at

cosmetic clinics and dermatology centers (Sofeminine, 2016). Sofeminine (2016) noted

that the ingredients in these products are clinically proven to deliver a tangible and

biological result in skin. These cosmeceuticals contain active ingredients, for example

anti-oxidants like vitamin c (Jackson-Cannady, 2016). Jackson-Cannady (2016) stated

that the FDA doesn't recognize cosmeceuticals as a separate class of beauty products.

It only recognizes three categories: drugs, cosmetics, and soaps (Jackson-Cannady,

2016). Jackson-Cannady (2016) noted that the product is not regulated as a drug or as

a cosmetic; it falls somewhere in between. How these products are regulated depends

on the claims the products make (Jackson-Cannady, 2016). Jackson-Cannady (2016)

concluded that if the FDA approves a product as a drug, it is a pharmaceutical, not a

cosmeceutical.

Skin Inc (2016) noted that cosmeceuticals ranked as the fastest growing personal care

category. Demand for the category is escalation rapidly (Skin Inc, 2016). This demand

driven primarily by anti-aging products, that offers an alternate to cosmetic surgical

procedures (Skin Inc, 2016). According to Skin Inc (2016) the market is dominated by a

small number of large players. The players include brands such as Olay, Garnier, L’Oreal

and Nivea (Skin Inc, 2016).

“Thermal spa waters have been used for years in both spa and aerosol form, with very

good results in patients suffering from a range of conditions, in particular, chronic

inflammatory skin diseases” (Seite, 2016). Seite (2016) noted that the thermal spring

water used in La Roche-Posay is recognized as a cosmeceutical. The different

biological properties of La Roche-Posay’s spring water include anti-radical,

immunomodulatory, anti-inflammatory, anti-carcinogenic and protection against ultra

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violet B induced skin damage (Seite, 2016). Seite (2016) further noted that the

therapeutic properties include psoriasis vulgaris, scars and non-infectious blepharitis.

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Make-Up

An estimated 15% of all cosmetic products sold, is make-up (Romanowski, 2016).

Romanowski (2016) stated that “the color cosmetic market represents about 15% of the

cosmetic industry and includes anything from lipstick to nail polish”. Blush, eye shadow,

foundation etc. is all included in this category (Romanowski, 2016). According to

Romanowski (2016) the market is highly segmented and doesn’t have one dominant

player.

Make-Up is often referred to as color cosmetics (Romanowski, 2016). According to

Cosmetic Business (2016) this group includes products that remain on the skin and

change the color or appearance of it. Products for nails are often also included in this

section (Cosmetic Business, 2016). Cosmetic Business (2016) noted that the make-up or

color cosmetic industry is the most regulated out of all the categories, as government

dictates which ingredients can be used in these products.

The color cosmetic market is booming (Cosmetic Business, 2016). Cosmetic Business

(2016) stated that this is due to the fact that consumers are exploring new looks and

manufacturers are producing even more satisfying formulas and textures. Brands still

look at color cosmetics as an area, which they should expand in (Cosmetic Business,

2016). Cosmetic Business (2016) further stated that many brands already have a

fragrance and the next step for these brands are to expand their market through color

cosmetics.

Yeomans (2016) stated that multi-functionality is a popular trend in the color cosmetic

industry. The multi-functional color cosmetic category is one of the most fast-paced are

of the color cosmetic industry (Yeomans, 2016). According to Yeomans (2016) the

reason for this is the fact that consumers see themselves as time poor; 40% of consumers

indicated that they rely heavily on time saving goods.

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Fragrance

The fragrance market has taken a hit in the last few years, but still makes up 10% of the

cosmetic industry (Romanowski, 2016). Romanowski (2016) stated that this is the highest

profit segment of the whole industry.

Perfumes and scented oils have been used as far back as ancient Egypt (Fragrance X,

2016). According to Fragrance X (2016) some scents were used by extracting the gum

and sap from trees or from the petals or leaves of plants. Today the fragrance and

perfume industry is regulated by the FDA and the GRAS, as well as internal organizations

such as the RIFM and IFRA (Fragrance X, 2016). Fragrance X (2016) stated that the FDA

requires that ingredients be listed on the label, but this proves difficult in the fragrance

industry as ingredients are a trade secret. The FDA does however ban the use of about

10 chemicals in the use of cosmetics (Fragrance x, 2016).

Fragrances are chemical compounds that released into the air through vaporization,

which is why consumers can smell them (Fragrance X, 2016). Fragrance X (2016) stated

that some fragrances can pose dermatological and neurological issues and they can

decrease the air quality indoors.

The industry regulates itself with minimal interference from the FDA (Fragrance X, 2016).

Fragrance X (2016) noted that this creates concerns in terms of materials used in

developing the fragrances. “Some of these fragrance chemicals, but not all, are

harmful to humans and animals in enclosed areas and can lead to respiratory, skin, and

sinus problems” (Fragrance X, 2016).

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Other

According to Romanowski (2016) “the “other” category represents 23% of the cosmetic

industry and is made up of things like toothpaste, deodorants, depilatories, and other

personal care products not yet mentioned”. These products can also fall under the

previously mentioned categories, but the industry experts often separate them

(Romanowski, 2016).

L’Oreal has focused its product range mainly on skin care, with hair and make-up being

there secondary focus. This in turn creates a lot of revenue in the skin care department

allowing for further research and innovation. Focusing so hard on skin care also pushes

L’Oreal to be one of the leaders in the beauty industry, making it one of the most well

known brands in the world.

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2.2.2. Industry Trends

Industry trends in the beauty industry that will be discussed includes casual, shine on

shelf, integrated online and in store, anti-pollution and beauty foods.

Casual

According to Wilson (2016) the majority of consumers are moving towards a more

casual and natural lifestyle. This will result in natural make-up looks becoming

increasingly popular in the years to come (Wilson, 2016). Wilson (2016) stated that many

cosmetic companies are developing make-up that looks more natural and effortless.

Shapiro (2016) noted that the no make-up look is going to become the new beauty

standard. Experts speculate that this trend emerged from the age-old less is more trend

(Shapiro, 2016). Shapiro (2016) further noted that the buzzword for 2016 is “authenticity”

and this trend fits perfectly into this trend. Consumers are embracing a more casual

and authentic lifestyle (Shapiro, 2016). Holmes (2016) stated that:

Beauty trendsetters are pushing a very particular look for spring: the bare face. And much to makeup companies’ relief, it takes new products to achieve it.

High fashion brands such as Marc Jacobs are also jumping on the trend (Holmes, 2016).

Holmes (2016) stated that this look is seen in catalogues, television, magazines, runways

and on the street. It is an aspirational look, and easy to pull off with the right cosmetic

products (Holmes, 2016). According to Holmes (2016) the move towards minimalistic

make-up is also a result of social media; especially Instagram and the #IWokeUpLikeThis

trend.

“Cosmetics brands are responding with lighter foundations, sheerer lip glosses and new

products to accentuate cheekbones and brows, two features that are especially

important with the bare look” (Holmes, 2016). Holmes (2016) noted that this trend is here

to stay and more cosmetic brands will soon jump on the wagon.

People want a more natural free look when applying make up moving towards a very

casual look when wearing make up. What this means is that La Roche will have to

impose the make up industry by releasing make ups which allow for a very casual look

for the consumers.

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Shine on shelf

According to Wilson (2016) noted that the shine on shelf trend refers to innovative

packaging and delivery systems that cut through the clutter of crowded store shelves.

Cosmetic companies will soon start to follow this trend, as conventional packaging will

be seen as boring in 2016 (Wilson, 2016), According to Momentum (2016):

The cosmetic market is an extremely competitive landscape. Consumers have countless options for just about every product out there, so brands are tasked with both making their version superior and finding a way to for it to stand out on the shelf. Packaging is a key part of helping shoppers to notice, and ultimately purchase one product over another.

Momentum (2016) stated that there are various innovative packaging trends cosmetic

companies will be taking advantage of in the future. The first is food inspired packaging

(Momentum, 2016). Momentum (2016) further stated that lip-gloss could possibly be

packaged to resemble a lollipop. Another is multi-functional packaging, which will

make it possible for consumers to purchase one product and use it for multiple purposes

(Momentum, 2016). According to Momentum (2016) customizable packaging is

another trend that can be taken advantage of. This refers to a signature look for each

company that would create instant brand recognition (Momentum, 2016). Momentum

(2016) noted that textured packaging refers to the use of raw materials, combined with

existing packaging to create a unique presentation. Another packaging trend is open

packaging (Momentum, 2016). Momentum (2016) suggested that this packaging

would allow consumers to take a peek at the product. The final packaging trend to

look out for is 3D printed packaging (Momentum, 2016). Momentum (2016) concluded

that this would be a special decoration that would give the package a tactile finish.

The shine on shelf trend has caused shoppers and consumers alike to want packaging

that sticks out and packaging that reduces the amount of clutter and mess on the

shelves at stores. This will affect the packaging of La Roche as they will want to have

packaging that will stick out and be very neat and tidy and easy to find when shoppers

are looking to purchase the product.

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Integrated Online and In Store

Wilson (2016) stated that increasingly more consumers are buying cosmetic products

online. Both in store shopping and online shopping needs to be integrated in order to

ensure that the two different experiences complement each other (Wilson, 2016).

“The beauty market offers a multitude of product and retail shopping options for

consumers” (Krom, 2016). Krom (2016) noted that consumers are largely driven by price

and convenience in the beauty market when it comes to where to shop and which

products to buy. This could possibly cause consumers to become loyal to certain easy

and accessible brands (Krom, 2016). Krom (2016) further noted that this would make it

challenging for other brands to access these consumers, once loyalty has already be

established.

One way in which brands can “steal” consumers, is by making their shopping

experience more convenient (Krom, 2016). According to Krom (2016) the best way to

deliver convenience to consumers in 2016, is to use online shopping and home delivery.

The reason for this is the fact that consumers are time stretched and are always

searching for the easiest option (Krom, 2016).

Lindner (2016) stated that consumers are gaining more confidence in shopping online

for cosmetic products. A study showed that 36% of women buy cosmetic products

online, when compared to 24% in 2012 (Lindner, 2016). Lindner (2016) concluded that if

brands are not available online for purchase yet, they risk loosing market share to this

trend.

Consumers are looking to want to shop for their products online but still want to be able

to shop for them in store so that they can try the products. This means that La Roche will

have to integrate the online and in store product range to be similar so that the

consumers experience the same shopping experience as they would in store to when

they shops online.

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Anti-Pollution

“There was a surge in anti-pollution products in 2015, and it’s an area of skincare we

think will only get even bigger next year” (Young, 2016). Young (2016) stated that

studies proved that the effects of pollution could be equally as damaging as sun

exposure. Experts say this is what is driving this trend’s popularity (Young, 2016). Young

(2016) further stated that consumers, especially city dwellers, are realizing that they

need to protect themselves from this environmental threat.

The number of consumers living an urban lifestyle is growing and many of these

consumers are looking for beauty products to protect themselves from the pollution in

the city (Mintel, 2016). According to Mintel (2016) many consumers are looking to wash

away the effects of their surroundings. Clarins Cosmetics have already started to take

advantage of this trend (McDougal, 2016). According to McDougal (2016):

Anti-pollution cosmetics have become quite the trend over the last year, with suppliers developing active ingredients to tackle this trend, and many manufacturers finding success in marketing these products around the world; and more opportunities lie ahead…

Manufactures can take advantage of this trend by introducing anti-pollution functions

through familiar products (McDougal, 2016). McDougal (2016) continued that this

would make the already known product multi-functional. These claims need to be

clearly communicated on the packages (McDougal, 2016).

The constant surrounding pollution has caused consumers to want a make up that

protects their skin against the pollution and doesn’t damage or affect their skin. This

opens up a market for skin care that will protect the consumer’s skin against the mass

pollution.

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Beauty Foods

According to Campbell (2016) the lines between the beauty and food industry

continues to be blurred. Boutique brands are turning to super food ingredients, and

using these ingredients in beauty products and recipes (Campbell, 2016). Campbell

(2016) noted that this trends fits in well with consumers who see themselves living a

holistic life. “Consumers are recognizing the connection between what they eat and

how they look” (Campbell, 2016). Campbell (2016) concluded that food trends will

continue to influence the beauty industry in years to come.

In Cosmetics (2016) stated that the convergence of food into the cosmetic industry is a

growing trend. Food ingredients are making their way into cosmetic products and this

movement is driven by innovation (In Cosmetics, 2016). In Cosmetics (2016) further

stated that “many consumers associating food ingredients with health benefits, such

cosmetic products are usually marketed on these ingredients”. The Body Shop is an

example of a brand that has fully taken advantage of this trend (In Cosmetics, 2016).

Consumers want make up that use pure and natural ingredients that will not only be

good for their skin but will also be good for the environment. This opens up a market for

make up or beauty products that have been made using fruits or similar items that will

be used as a natural beauty product.

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2.3. THE CONSUMERS Generation is seen, to an extent, to be spoiled or entitled and it is the fault of their

parents who spoiled them by rewarding them for anything that they have done and

telling them how special they are (Hansen, 2015). “These parents stunted their children’s

growth by proactively removing all obstacles and potentially negative experiences”

(Hansen, 2015).

They are also seen as being lazy due to technology that allowed them to multitask and

in that way find shortcuts to achieve tasks (Hansen, 2015). Generation Y is also seen as

more competent, efficient and productive due to their skills with web surfing, texting,

social networking and instant messaging (Hansen, 2015).

The generation Y are way too self-centered and individualistic and is often seen as the

“Ipod Generation” because Ipod commercials are focused on individuality while selling

the product to the Y generation (Hansen, 2015). They do work well in teams especially

with people their age but they were mostly taught about individuality and independent

thinking (Hansen, 2015). According to Hansen (2015) they do see themselves as unique

individuals as they are not tied to specific labels.

They are also seen as risk-avers since they started entering their teen years for example

a rise in crime amongst them, pregnancy and abortion, smoking and drinking has

increased significantly (Howe, 2014). They also try to avoid economic risks as they aspire

to have a stable career with a big corporation (Howe, 2014). Many of them feel that

job security is extremely important and they max out on pensions and insurance once

they start with a job (Howe, 2014).

They are extremely close to their families as many of them live with their parents till age

34, and its not because of joblessness, they just seem to get along with their parents,

who are mostly the baby boomers generation, very well (Howe, 2014). In the 1980’s, 11

percent lived with their parents, where in 2014, 24 percent live with their parents (Howe,

2014).

The generation Y is very achievement orientated as many struggle to get jobs, and now

a large number work to get their degrees (Howe, 2014). In 2014, Howe (2014)

discovered that the share of the 25 to 29 year olds with college degrees are at 33

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percent and with high school diplomas are at 90 percent, are record highs. There has

also been a massive increase in college loans indebtedness as it passed $1 trillion in

2011 (Howe, 2014).

According to Goodman (2016) Generation Y is the biggest and most diverse

generation yet. Goodman (2016) indicated that Generation Y is the frontier of the

technological revolution stage of the world. Vodicka (2016) stated that to attract

millennia’s these days, the brand has to create awareness and an experience. Vodicka

(2016) enforced this by stating that Generation Y are the entrepreneurial generation,

they are considered the foremost of DIY’ers.. Vodicka (2016) noted that exploration

plays a big role in the brand awareness generation for the Millennia’s. Vodicka (2016)

indicated that brands must allow millenia’s to try the brand without having to buy into it

or invest into it.

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2.3.1. Consumer Trends Image Conscious

One of the biggest trends in the youth today is the fact that they are extremely image

conscious and a lot more selective on what information they share on their social

media platforms (Maseko, 2015). The information that they share on their social media

platforms contributes to their personal brand building (Maseko, 2015).

A lot of the younger population seek to define themselves through their preferred dress

codes or their lifestyles and they are extremely focused to set themselves apart

(Maseko, 2015). According to Maseke (2015) social media is no longer a platform to

post information or reposts from peers, but a platform to promote personal brands or

preferred brands and increase personal brand equity (Maseko, 2015).

Consumers are looking to boost their image by boasting what they wear and what they

use. This means that there is a market for high line affordable products that will make

the consumers able to boast their beauty product range.

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Fear of being irrelevant

The term FOMO, fear of missing out, are slowly but surely being replaced with the term

FOBO, which refers to te fear of being irrelevant (Maseko, 2015). “With so much

information readily available everywhere, young people often ask inappropriate

information sources for updates and are likely to use this inaccurate information to

contribute to the discussions both online and offline” (Maseko, 2015).

As a result of the youth having this fear, more and more of them comment on topics on

social media platforms which they don’t always fully understand and thanks to this

trend there will be an increase in unreliable information (Maseko, 2015). Brands and

individuals have to make sure the information they share is infact reliable by having it

verified (Maseko, 2015).

Young people are spending money recklessly now more than ever before as they are

encouraged to try out new things in order to be different (Maseko, 2015). They are

exposed to peers who visit a variation of holiday resorts, which is mostly abroad as well

as different restaurants and hotspots (Maseko, 2015). However the trend of being set

apart from others is causing them to try out the different occasions, despite of how

costly it is (Maseko, 2015).

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Digital Media

Social media has also played a huge roll in how the youth spend their money as

personal social media account are more effective than paid advertising in todays life

(Maseko, 2015). Spending power of the youth is influenced by experiences that get

shared on social media (Maseko, 2015).

It is extremely difficult to market to the youth of today due to constantly changing fads,

concepts and trends (Student Brands, 2016). The most difficult part is finding a balance

between actionable, valuable and youth orientated content (Student Brands, 2016). In

order to work with the youth, brands have to really understand what defines the youth

market and how to speak the language of the market (Student Brands, 2016).

Another trend is the constant increase of visual domination as most of the youth don’t

like reading unnecessarily as its seen as time consuming (Maseko, 2015). Maseko (2015)

noted: “The beauty of platforms such as Instagram, which has now become the

favourite with most young people is that it allows them to showcase themselves, what

they like doing, who they do it with and where they do it.”

Digital media is playing a huge role in most consumer’s lives and consumers will spend

up to 8 hours a day on all digital media. This means that there is a huge market to

target consumers on their different digital media platforms.

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Socio-Economic Interest

Maseko (2015) talks about how this all started with a larger number of (first time) youth

voters in the 2014 elections, in a country with high illiteracy and unemployment levels,

especially in the youth market. According to Maseko (2015) young people have come

to the realisation that whatever is discussed by those they voted into power has a direct

impact on their future. They have now chosen to engage in both online and offline

discussions about socio-economic issues they otherwise would have previously chosen

to ignore (Masek, 2015).

Maseko (2015) mentions that there has been a major change in the political scene,

with parliament, for example, now becoming an interesting topic for young people, the

youth are now more interested in how parliament is run, what is discussed and how

these proceedings affect the country and ultimately their future. 2015 will see an

increase in young people watching shows that deal with current affairs as well as an

increased interest in parliamentary affairs (Maseko, 2015).

The youth has realised the impact of the government on their future and so a lot of

youth have taken the initiative to create in formal discussion about the government, as

they believe this will help make their future a better place. This means that there is more

discussion on the economic stability of the country and there is a way in through this.

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E-Commerce

According to Maseko (2015) young South Africans are now becoming comfortable with

transacting online, previously they chose to buy goods and make payments in person.

Maseko (2015) goes on to mention that the main issue being that of security; there has

always been the issue with putting credit card information and personal information

online that most young people have reservations about given the level of online crime

in the country. However, the different payment systems and banks have been working

to ensure people of the safety of transacting online and are now gaining trust with the

youth market (Maseko, 2015).

Maseko (2015) mentions that with TFG bringing some of its brands such as Sportscene

online, following the success Mr Price has had in this arena and coupled with

international brands such as H&M choosing to enter the South African market online, e-

commerce is certainly growing in South Africa. Maseko (2015) goes on to state that

2015 will also see Kalahari.com being folded into Takealot.com to create a massive one

stop online experience for consumers. Maseko (2015) also mentions that South African

internet usage grew to at least 48.9% of SA's 50 million population having internet in

2013. A figure which without doubt increased in 2014 and will be a contributing factor

to e-commerce flourishing in 2015, especially amongst the youth market (Maseko,

2015).

A lot of the young consumers are now doing more and more transactions online and

shopping online which means there is a viable platform to target these consumers by

giving them an easy to shop online platform and allowing them to shop online easily.

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Reality TV

According to Maseko (2015) the idea of the youth knowing that they have some

influence on the results of a show, or perhaps knowing that their comments and words

of encouragement can motive the participants, has led to a large number of young

people taking great interest in reality shows. This interest is not only limited to watching

but also voting and taking to social media to encourage their peers to do the same

(Maseko, 2015).

Maseko (2015) mentions that there was a lot of support for the underdogs in 2014 reality

shows, and the fact that most of them excelled has kept most young people eagerly

waiting for the 2015 installments of the different reality shows. Maseko (2015) says that

there is a greater need by young people to support the underdog in reality shows as

their success also inspires them. Reality shows like Idols SA and Big Brother are thus set to

have more youth viewers and voters for 2015 (Maseko, 2015).

A lot of youth today like to get involved in reality TV as it is a form of interaction for

them, this means that there is a gap in the market to advertise on reality TV shows and

get the product on the show to influence the youth to consider the product.

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Music

Maseko (2015) suggests that South Africa is rich in culture, taking not only from the local

culture but from all the other African nationalities that have relocated to the country;

however until recently the youth have been somewhat conservative with regards to

their uptake of music from other nations instead choosing the 'Proudly South African'

route and mostly supporting local talent.

Maseko (2015) also mentions that while it's beneficial for local artists to spread their

wings and venture into the huge West African market, it's also encouraging when the

collaborations are well accepted by the youth locally. According to Maseko (2015)

2015 will see more young people opening up to West African music, and subsequently

more collaborations between South African and West African artists. With top South

African musicians such as Mafikizolo and Cassper Nyovest having successfully worked

with top West African artists such as Davido and Ice Prince, this has led to more

collaborations of this kind being expected by the youth for 2015 (Maseko, 2015).

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Increase in Spending Patters

There has also been a massive increase in the spending patterns of the youth when it

comes to clothing that they buy, and this is because of the rapid increase of

international clothing brands being available to them (Maseko, 2015). Not only do they

have a wide variety of clothing to choose from, they also see these international brands

as better quality clothing and its priced relatively the same to local clothing retailers

(Maseko, 2015).

Edgars has a variety of international clothing brands, but brands like Cotton On,

Superdry and Zara offer the quality and style that the younger generation want

(Maseko, 2015). According to Maseko (2015) the youth will continue to grow their

support to the international clothing brands and retailers, as long as their prices remain

relatively close to those of local retailers.

There has been a noticed increased in spending with the youth with a lot more youth

having a larger disposable income and thus spending a lot more on products for

themselves. This allows the La Roche brand to have a solid market infrastructure with

the youth.

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2.3.2. Marketing to Millenials Brands should go beyond observing the demographics of the younger generation, they

must effectively reach out to them and learn their language, mainly integrating into the

youth culture (Student Brands, 2016). They have to ask them the right questions so that

they can figure out what will make them engage with a new product or service

(Student Brands, 2016).

According to student brands (2016) some of their members fit into the demographics of

the youth and they can effectively provide accurate information about how they shop,

think and make lifestyle choices by effectively tapping into their minds.

The youth of today contribute roughly 41 million rand to the economy of South Africa,

but they don’t really have the cash flow that adults have (Student Brands, 2016). They

are influencers for peers, peers and adults to buy what they want, and getting them to

be a part of the next big thing (Student Brands, 2016).

It is important that brands realize that marketing to the youth is about changing the

way they see your brand and not about changing your brand (Student brands, 2016).

According to Student Brands (2016) they must strive to speak to the youth while

providing engaging benefits to interaction.

Another key involves positioning your brand in such a way that they see it as appealing,

the younger generation hav the want to engage with something that is appealing to

them (Student brands, 2016). Brands have to broad their reach and make sure they

enhance what their products or services have to offer to the younger consumers

(Student Brands, 2016).

According to Mkhabishe (2015) amongst black Sowetons aged 16 – 22, the average

household will have a minimum family size of 6 people per dwelling, and a maximum of

11 people. Mkhabishe (2015) indicated that of these Sowetons interviewed only 40%

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said that their father was still living with them, and of this 40% majority indicated that

their father figure was in fact their step father. Mkhabishe (2015) stated that these

Sowetons live in townships and standardized match box homes. Mkhabishe (2015)

noted that this demographic are living with the prevalent social issues with most of

them knowing someone who has attempted or committed suicide, and they also know

someone who has HIV/Aids or who has passed away due to HIV/Aids. Mkhabishe (2015)

stated that the groups interviewed are still suffering from a traumatic incident such as,

attempted rape, family murder, arrest, harassment by police, family break up, parents

mental illness or a serious accident.

According to Mkhabishe (2015) majority of this demographic use taxi’s as their main

form of transport. Mkhabishe (2015) stated that some this demographic do have cars or

their friends have cars, but these are generally only used on the weekend for reaching

places of entertainment.

Mkhabishe (2015) indicated that for leisure or free time majority of this demographic will

watch TV or listen to radio and hang out with friends, this being after school. Mkhabishe

(2015) noted that few facilities are available to this demographic and that the few

people who do partake in after school activities will play Rugby, Soccer or Cricket, with

cricket being indicated as a growing sport in the area. However; Mkhabishe (2015)

stated that on the weekends this demographic will visit friends, significant others, go to

shopping malls and clubs in town and a lot will participate in church activities.

Mkhabishe (2015) indicated that young sowetans spend majority of their money on

clothes, movies, clubs, eating out and alcohol. Mkhabishe (2015) stated that it is still a

normality for the boys to pay for the full date when on a date.

Mkhabishe (2015) noted that this demographics favourite places to shop are; East

Gate, South Gate, Sandton City, Hyde Park and Rose Bank. According to Mkhabishe

(2015) their favourite shops in these places are; Foschini, Truworths, Queenspark,

Replay, Oxygen, Cameroon, Edgars, Soviet and Third Base.

Most of this demographic has no regular full time job, with majority focusing on part

time jobs and even then it is a rarity to find a person with a regular part time job

(Mkhabishe, 2015). Mkhabishe (2015) stated that of those interviewed the ones, who

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didn’t have jobs, said that they have never had jobs, and have never tried looking for a

job.

Mkhabishe (2015) indicated that majority of the demographic listen to radio. Mkhabishe

(2015) stated that of those interviewed the most popular radio stations were Yfm and

Metro FM, however; they do sometimes listen to other radio stations depending on the

mood and whether or not they are with family, these stations include; Ukhozi FM, Lesedi

FM, Khaya FM and Jozi FM. Mkhabishe (2015) noted that all of the demographic still

watch Television daily, although many have complained about the deteriorating

quality of the SABC channels. Mkhabishe (2015) stated that those interviewed mostly

watched eTV and the next big one was SABC 1 with Mnet open time coming in at 3rd.

The respondents indicated that their favourite shows were mostly; soaps, music shows,

chat shows and movies (Mkhabishe, 2015). Mkhabishe (2015) noted that their favourite

programmes were mainly SABC 3’s family programmes such as Generations, Days of

our lives and The bold and the beautiful.

According to Mkhabishe (2015) 90% of the respondents indicated that they read the

sowetan as it is usually brought home by other family members, however; the Sunday

times, City press and the star are still very popular. Mkhabishe (2015) noted that only

30% read magazines, with the most popular magazine being Y magazine.

Cosmopolitan and Elle were the next most popular but only amongst girls with 20% of

the females reading those magazines (Mkhabishe, 2015). Mkhabishe (2015) stated that

of the males only a few claimed occasional readership of Kick off.

Mkhabishe (2015) stated that the demographics favourite television adverts consisted

of Vodacom adverts, red bull adverts and standard bank adverts. Mkhabishe (2015)

indicated that the respondent’s favourite radio adverts were Coca-Cola and Lovers

plus condoms adverts.

Mkhabishe (2015) noted that the respondent’s favourite brands consisted of; All stars,

Soviet, Diesel, Levi’s, Nike, Tommy Hilfiger, Dolce & Gabana, Kurt Geiger, Lacoste,

Gucci, Guess and DKNY.

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2.4. THE COMPETITORS 2.4.1. Competitive Groups Dermatologists Dermalogica Enivron Africalogy Esse Babor Elim Indulgence

Pharmaceuticals Gunter Prasad Placecol Allergen PharmaClinix Ordinary Skin Medica Obagi Solal Clarisonic Elucent

Cosmeceuticals La Roche-Posay Vichy Clinique Clarins Eucerin Epiwash Zinplex Cetaphil

Mass Market Nivea Garnier Clearasil Johnsons & Johnsons Oxy Yardley African Extracts Olay Ponds

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2.4.2. Competitive Analysis Who are the competitors and why? There are two different levels of competition that La Roche-Posay needs to investigate.

The first is competition based on the perception of consumers, and the second is

competition based on the perception of the industry.

Consumer Perception

There are three different competitors, based on consumer perception. These are

Eucerin, Vichy and Bioderma. The reason that these are competitors, are the fact

that they target the same market share, with similar cosmeceutical products. Eucerin

and Bioderma both have similar pricing strategies when compared to La Roche-Posay.

Vichy is a more expensive product, but it makes use of a similar distribution strategy as

La Roche-Posay.

Industry Perception

There is one main industry competitor that La Roche-Posay should be aware of, this is

Nivea. Nivea has a large share of the market, as it is a mass-market product. La Roche-

Posay should avoid head on competition with this brand, to avoid being seen as a

threat by this giant company.

What are the different strengths, weaknesses and objectives of the

different competitors?

Vichy

Strengths Weaknesses Objectives Vichy’s biggest strengths is the fact that the brand has a reputation for excellent quality Another strength is the fact that Vichy has loyal customers who support the brand

Vichy’s one weakness is the high price of the product, as there are cheaper alternatives available on the market Another weakness is the fact that Vichy has a small market share when compared to competitors

Vichy’s objective is to help their target audience reach their ideal skin

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Bioderma

Strengths Weaknesses Objectives One of Bioderma’s biggest strengths is their innovative culture The company offers unique products and has a strong brand identity and name Another strength is the fact that customers are loyal to the brand and the brand has a size advantage as it is a big company

High staff turnover and weak management, is the two weaknesses that Bioderma has

Bioderma’s objective is to find biological solutions to preserve the health and beauty of their customers skin in a lasting way for their target audience

Eucerin

Strengths Weaknesses Objectives Eucerin’s main strength is the fact that is has a skilled workforce, which resulted in high profitability for the product The existing distribution and sales networks, which gives them a competitive advantage Dermatological skin care expertise, is another strength of the company Started in 1950, therefore they have more experience in the industry

The company’s productivity is often not on standard which is a weakness The company also does not investments in research and development

Main objectives – Committed to providing products to customers that works for all skin types Social media digital campaign – To create Awareness

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Nivea

Strengths Weaknesses Objectives U.K market leading male facial skin care brand. Which gave it strong brand recognition. Solid financial base, so it had the resources to put together a strong marketing campaign Has staff with relevant skills, researchers with scientific skills to develop products that people, and marketing staff with the skills to help promote these products effectively The brand is globally recognized which results in massive brand recall Nivea has a strong distribution network, advertising and brand visibility

Product range for male target market is often thought of as irrelevant in today’s time. Unsure if sales and distribution outlets were correct for the product. Nivea is perceived as winter cream, as it is very thick and customers are less likely to buy the brand in the summer There is intense competition in skincare segment, so the company needs to come up with innovative strategies

The main aim and objective of NIVEA is to have its products close to its customers, regardless of where they live Nivea for men – move men from only considering skin care to purchasing product Nivea versage young – establish brand identity and corporate image

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2.4.2. Competitive Strategies General Strategies Consumer Competitors Product Price Distribution Promotion Eucerin

- body - face - baby

80-300

Intensive- Mass, Dischem, Clicks, Pick ‘n Pay

Digital marketing, video, YouTube on social media on the damages of pollution Skin first pledge 2010

Vichy - cleansers/toners - body care - deodorant - eye care - moisturizers - night treatments - serums - sun care - thermal spa

water - value kits

180-500

Selective – Clicks and Dischem

Forget flawless campaign, wanting women to be comfortable in own skin advertisement – series of tv adds

Bioderma - face - body - scalp & hair - sun

150-250

Intensive – Clicks and Dischem, Pick n Pay and online shop is south Africa

A cute interactive campaign, Facebook, raise awareness, cute designs, game interactive

Industry Competitors Product Price Distribution Promotion Nivea

- bath care - body care - lipcare - mens care - nivea creme - nivea soft

30-200

Intensive – Clicks Dischem, Pick n Pay

Nivea Bluetooth enabled print add tracks kids at beach – digital and print campaign

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Specific Strategies Eucerin

Eucerin offers a solution to the most frequent skin concerns found in dermatological

pratises (Eucerin, 2016). They are the dermatologist-recommended skin care brand

based on the honest skin care science that they found in their research (Eucerin, 2016).

All Eucerin products have shown proven efficacy for healthy and radiant skin as the

products combine superior skin tolerability (Eucerin, 2016).

Eucerin can offer and does infact offer a holistic “dermo-cosmetic” approach based

on their knowledge and research that they uncovered through the years as being part

of the Beiersdorf group (Eucerin, 2016). Their target market is people who have skin care

problems and they reach the target market through dermatologists and local

pharmacies who recommend it (Eucerin, 2016).

In 2011 Eucerin had a skin first campaign with which they won the min Integrated

Marketing Award for the Best Social Media Initiative (GCI Magazine, 2011). The award

praised the promotional programs, social media campaigns and integrated digital

media programs involved (GCI Magazine, 2011).

They made use of social media in order to connect and engage with consumers as it

was a vital part of the brand’s character and it enabled a two-way dialogue with the

customers and other members of the community, which deepened relationships with

them (GCI Magazine, 2011).

In 2014 Eucerin launched a 3 phase digital media marketing campaign where they

made use of the platforms Facebook, Google Hangout and Youtube (IH Digital, 2015).

They made use of Facebook in order to share most up to date stories about he

campaign, for example the teaser video of the campaign, and fans could post

testimonials and be directed to live chats and videos (IH Digital, 2015). They made use

of Google Hangouts so that participants could enquire about products and sensitive

skin conditions (IH Digital, 2015).

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They could also join in on monthly live chats through Google Hangouts till December

2014 and the chats were also viewable on Youtube and the link was posted on the

Facebook profile (IH Digital, 2015).

Figure 7: Eucerin

(IH Digital, 2015)

They successfully launched a marketing communication strategy by educating fans

about skin problems, skin layer, skin cycle, skin types and Eucerin products that can

solve these problems (IH Digital, 2015).

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Vichy Vichy’s strategy is all about, no matter what your age, lifestyle, nature or colour of your

skin, they can help you achieve your ideal skin (Vichy, 2016). Vichy targets men and

woman and offers products in order to ensure healthy skin and hair, as their slogan

states: “Health is beautiful” (Vichy, 2016). Vichy’s main focus has always been the

science behind skin care (Singh, 2015).

However in 2015, Vichy moved away from their scientifical focus and focused on

creating an emotional connection (Singh, 2015). They launched a campaign “Vichy

works for me” in order to let women know that great skin goes along with a great

lifestyle (Singh, 2015). They searched for brand ambassadors with different lifestyles and

skin types to show that their skin care routines can change for the better by using Vichy

products (Singh, 2015). It also reflected how the Vichy products fit in with their lifestyles

(Singh, 2015).

They made use of 60-second videos that showcased women from various ages with

different lifestyles and the Vichy products that would work best for them (Singh, 2015). It

also entailed Vichy experts in the videos that explained the products to them (Singh,

2015).

In 2014 Vichy launched a online marketing campaign via Facebook and the objective

of the campaign was to raise awareness of the summer hot products, which was Vichy

Normaderm and Night Skincare Detox Kit (Pixopunch, 2014). It was based on educating

fans on detoxing for perfect skin (Pixopunch, 2014).

It consisted of a interactive game named “Test your detox level” and was created to

encourage fans to test their detox knowledge by selecting 6 perfect detox foods within

30 seconds and then enjoy sample redemption (Pixopunch, 2014). They also provided

recipes for easy-to-make detoxing dishes (Pixopunch, 2014).

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Bioderma According to Bioderma (2016) at the heart of the Bioderma Laboratory's approach,

Research & Development harnesses all efforts to continuously remain at the forefront of

scientific knowledge in biology and dermatology. Bioderma (2016) states that after

years of work alongside top international medical experts, Bioderma has become a key

player and plays a decisive role in the implementation of research breakthroughs for

skin diseases. It collaborates with researchers and physicians in each stage of a

product's development (Bioderma, 2016).

Bioderma (2016) states that Bioderma's mission has always been to better understand

the skin and especially understand how healthy skin works to know how to rebalance it

when it malfunctions. Bioderma (2016) mentions that real expertise in skin biology is

required to understand the causes before treating the consequences. Upstream,

Bioderma teams work in close collaboration with national and international scientists

and laboratories with advanced expertise in skin biology (Bioderma, 2016). Ongoing

progress in fundamental research provides keys to better understand the causes of skin

imbalances and paves the way to dermatological innovations (Bioderma, 2016).

According to Bioderma (2016) in the past, Bioderma always relied on clinical research

to develop product innovations, and this is still true today, essential sources of

information, dermatologists further Bioderma's research by identifying skin problems

requiring new responses. Bioderma (2016) goes on to mention that the partnership then

continues throughout the innovation process to validate the safety and effectiveness of

each new product. Bioderma (2016) suggests that clinical trials in hospitals take all

aspects into account, from tolerance to the most suitable formulation. The Bioderma

Laboratory frequently publishes scientific and clinical studies together with major

international laboratories (Bioderma, 2016).

According to Bioderma (2016) advances in knowledge of skin biology guide the

laboratory teams' research work and give rise to Bioderma patents. Bioderma (2016)

states that embodiments of the laboratory's innovation capacities, they provide

concrete, effective solutions to various skin problems. Bioderma patents are not set in

stone: they are constantly changing to remain in step with the latest progress in skin

biology and thus meet the needs of dermatologists and the expectations of their

patients (Bioderma, 2016).

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According to Woo (2013) One of Biodermas campaigns that they made use of was the

Bioderma X Din-Dong: A Cute & Interactive Campaign:

Woo (2013) states that Pixo Punch was recently appointed to plan and implement a

facebook campaign for the famous skincare brand Bioderma to further raise

awareness for its hero product, Bioderma Sensibio H2O makeup remover.

Woo (2013) mentions that the target group of this campaign is young ladies, thus

collaboration with lovely Din-Dong is a wise choice to make the campaign more

appealing and intriguing to the target group. The visual design not only showcases the

key characters of the product but also combines Din-Dong’s cuteness, which in turn

provides an enjoyment for campaign participants (Woo, 2013).

Woo (2013) states that the campaign mechanism was designed to attract new

customers and retain existing fans by simple questions and sample redemption,

participants can also invite friends to play the game and gain points to redeem prizes.

Woo (2013) says that through sample redemption and coupon offerings, this campaign

would successfully boost offline sales. It’s a win-win means to combine online

interactions with offline activities smoothly and effectively (Woo, 2013).

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Nivea According to Marketingtango (2013) in 1980, men around the world were introduced to

a new concept in skincare: an alcohol-free aftershave balm from Nivea that did not

irritate the skin, proving to be popular with consumers, Nivea for men included a full

range of skincare products by 1993.

Marketingtango (2013) suggests that by 2008, more and more men were investing in

skincare and grooming products, prompting the Nivea for men brand to decide to

claim more market share in the growing category, to do this, Nivea deployed a

sophisticated marketing planning process to relaunch and reorganize.

Assess the Market:

Marketingtango (2013) mentions that in a case study published by The Times 100, Nivea

revealed that its first marketing planning step was to conduct an evaluation of the

business, its brands and products. This included an assessment of the brand’s position

and the state of the market. Marketingtango (2013) goes on to state that a SWOT

analysis revealed some surprising facts, including that women are an important target

market for Nivea for men because they often buy male grooming products for their

partners as well as help them choose which products to buy.

Set the Objectives:

Marketingtango (2013) states that armed with real data from the SWOT analysis, the

integrated marketers at Nivea for men moved on to the next stage of marketing

planning: setting objectives. Marketingtango (2013) suggests that using research data

to forecast trends, the marketing team set SMART (Specific, Measurable, Achievable,

Realistic) objectives for the Nivea for men relaunch. This helped them set specific

targets for increasing sales, growing market share and improving its brand image

(Marketingtango, 2013).

Market the Brand:

According to Marketingtango (2013) as the Nivea for men team advanced to the next

stage of marketing planning and began to devise and carry out integrated marketing

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tactics, according to The Times 100, promotion served as one cornerstone of the

campaign:

Marketingtango (2013) states that Nivea sought to build on and develop the approach

it had used in the past. Marketingtango (2013) suggests that in the 1980s, advertising in

men’s style and fashion magazines along with product sampling was a major

promotional tool. Marketingtango (2013) mentions that In the 1990s, the company used

radio, television and press advertising together with sampling. Marketingtango (2013)

goes on to state that since 2000, there has been a greater emphasis on consumer

needs and an increasing use of experiential activities in the promotional mix.

Experiential marketing is about engaging consumers through two-way communications

that bring brand personalities to life and add value to the target audience, this helps

build an emotional connection between the brand and the consumers

(Marketingtango, 2013).

Measure the Results:

According to Marketingtango (2013) no marketing planning process is complete

without evaluation or measuring the outcomes of the marketing activities against the

original objectives and targets. The NIVEA marketers say continuous evaluation helps

them focus on modifying or introducing new activities to achieve objectives

(Marketingtango, 2013).

Nivea for men adopted a range of key performance indicators to assess the success of

the Nivea for men relaunch in the UK, it looked at:

Market share: Nivea for men is the market leader in many countries and is consistently

gaining additional market share.

Overall sales: Internationally, Nivea for men skincare products grew by almost 20

percent.

Brand image: The line was named the Best Skincare Range winner in the FHM Grooming

Award, as voted for by consumers.

Product innovation: Nivea for men listened to customer feedback and added products

to its line and reformulated existing products.

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According to West (2013) following on from its Covent Garden launch event in May

2013 Nivea is taking its ‘Dare to Dip’ campaign on the road.

West (2013) states that the second phase of the campaign, which centers around the

belief that you feel good in your skin when you have the confidence to live life to the

fullest, sees the mobile pool party or ‘Nivea Dip Skip’ touring across Northern Europe.

West (2013) goes on to say that the integrated campaign includes TV, print, OOH, radio

and online as well as social media activity asking women to vote for a glammed up

Nivea Dip Skip to come to their city, supported by a mini Dip roadshow of popular

postcodes.

According to West (2013) hundreds of women were able to take a once in a lifetime

dip in Covent Garden but Nivea wanted to spread confidence to even more women

across Europe, the Nivea Dip Skip is an urban object imbued with Nivea care, after all

it's not often you'd get to take a dip in a daringly public town center location.

West (2013) states that Neil George, marketing director, Beiersdorf Northern Europe

commented, “The ‘Dare to Dip’ platform was conceptualised by the team to enhance

Nivea’s heritage of trusted skincare as well as the confidence of millions of women

across our region. We are excited to see that thousands of women have embraced

Nivea’s ability to boost their natural confidence. The results of this wonderfully executed

campaign have been simply fantastic.”

West (2013) mentions that so far in Northern Europe the Dip Skip has been on hand to

reward competitors at the finish line of the Femina Run and refresh festival goers at a

pamper area of the Way out West festival in Sweden. West (2013) states that the

campaign itself is supported by a multi-agency partnership including Jack Morton

Worldwide, global brand experience agency; a partnership with Bauer, brokered by

MEC; social media and community management by Agency Republic; as well as a

consumer PR drive by Zeno Group London.

According to Clark (2012) Nivea has an established name in very high quality beauty

care and skin products, Nivea is a global company which specializes in skin and beauty

care. Clark (2012) states that the main aim and objective of Nivea is to have its

products close to its customers, regardless of where they live. Clark (2012) suggests that

they understand their customers in many different markets and delight them with

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innovative products for beauty care and skin needs, although they are still growing and

coming up with new products. Clark (2012) mentions that In 2005 Nivea came up with

this new product Nivea Visage Young. According to Clark (2012) it’s a part of Nivea

Visage range offering a comprehensive selection of products aimed at Young women.

This product helps young woman to develop a proper skin care routine to keep their

skin beautiful and healthier. Clark (2012) mentions that when Nivea came up with this

new product they make a lot promotion which is very important for marketing activities

of Nivea, they used promotion to create a favorable predisposition toward the service,

person, idea and the brand.

According to Clark (2012) the basic element of promotional mix that Nivea uses are:

Public relations: Is very important for Nivea, this is communication toward the public

and PR can create a good will and can add value to Nivea’s brand image.

Advertising: This is a way of communication with current and potential customers which

is done through the media, for example you can see Nivea Visage Young products on

bill boards, internet, TV etc.. Advertising creates Nivea Visage awareness and informs a

lot people at once.

Sales promotions: Is also important, it is important for Nivea to keep their products

selling, for example giving a shampoo free by buying a hair conditioner etc.. This is an

excellent way for reaching niche audiences and is good for trade promotion.

Personal sales: This is a way of promotion activity where the employee is directly

contacting the customers, this will develop relationships with their customers and could

also be a persuasive tool.

The role of promotion in the marketing mix for Nivea Visage Young is (Clark, 2012):

1. To increase the sales for several products.

2. To increase the market share.

3. To establish a brand identity (giving the product an image)

4. To establish a corporate image

5. To enable a long-term planning which take place?

6. To provide the potential customers with readily available info.

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Product:

According to Clark (2012) the first element is product, understanding the market and

what the market ask from Nivea is the first stage in building an effective mix. Nivea does

a lot of market research to find out what people want from Nivea. Clark (2012) states

that they do this through different ways like gathering data from customers, product

testing, using focus group etc.. Clark (2012) suggests that by doing that kind of research

they found out that there is a gap in the market. According to Clark (2012) younger

woman wanted a product which is more specialized for face care and is aimed at their

own age group, to fulfill this gap Nivea came with the Nivea Visage Young product

which provides those needs by targeting at girls between 13-19. Beierdorf tested this

new product on a sample group from its target audience before they finalize the range

for re-launch, with this new product range Nivea become more successful than they

were and the fact that the direct competitors on Nivea are focused to offers

medicated solution give them a competitive advantage (Clark, 2012).

Promotion:

Clark (2012) states that promotion is always very important when a business wants to sell

its products, promotion creates awareness of existence of the products or services

offered. Clark (2012) mentions that with making promotions Nivea provides their

customers with information about the product, which is useful to them and therefore

produces an incentive for their customers to buy Nivea´s products. According to Clark

(2012) they choose promotional strategies that reflect the lifestyle of their audience.

Price:

Clark (2012) suggests that this is one of the most important components of the

Marketing mix, the main purpose of pricing is to produce the required level of sales so

that Nivea can achieve their objectives. Clark (2012) mentions that the pricing for

Nivea Visage Young was higher than previously, this was because of the new

formulation, packaging and extended product range. According to Clark (2012) they

are also the price leader, this is effective of course as they are one of the leading skin

care ranges that meets the beautifying needs of the market segment. Clark (2012)

states that the pricing strategy that Nivea Visage Young use is high enough to make

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profit, but also not high to discourage people to buy its products, Nivea also has the

rule to sell its products to retailers at one price.

Place:

According to Clark (2012) promotion has the key role of informing the customers where

to buy Nivea’s products. Nivea Visage Young aims to use many relevant distributions

channels as possible to ensure the widest reach of their products to their target market,

for example to make it easier for customers, they can buy Nivea Visage Young

products online. Clark (2012) states that buying product through the internet means

that Nivea should undertake all the promotional activities on their own. Clark (2012)

mentions that decisions about the placement will therefore have an important impact

on the promotional activities for Nivea.

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2.4.3. Porter’s Model of Competitive Forces According to Mind Tools (2016) Porter’s Model of Competitive Forces is a powerful tool

for understanding where power lies in a business situation. It helps a business understand

the strength of their current competitive position and the strength of the position the

business is planning to move into (Mind Tools, 2016). Mind Tools (2016) stated that with

an understanding of this, advantage of certain situations could be taken. There are five

forces that needs to be evaluated: threat of new entrants, threat of substitute products,

bargaining power of buyers, bargaining power of suppliers and industry rivalry (Mind

Tools, 2016).

The threat of new entrants refers to the ability of different businesses to enter the market

(Mind Tools, 2016). Mind Tools (2016) stated that if the entry barriers are low, there is a

high threat of new entrants. Barriers to enter include the costs to enter, economies of

scale etc. (Mind Tools, 2016).

Threat of substitute products refers to the ability of customers to substitute the offered

product (Mind Tool, 2016). Mind Tools (2016) stated that if a product is easy to imitate, or

not highly differentiated there would be a high threat of substitutes. The willingness of

consumers to substitute relies on the switching cost and the performance of substitute

product (Mind Tools, 2016).

Bargaining power of buyer refers to the ability of buyers to drive down prices (Mind

Tools, 2016). According to Mind Tools (2016) this is driven by the number of buyers, the

importance of each buyer, the switching costs and the availability of substitute or

alternative products.

Mind Tools (2016) noted that the bargaining power of suppliers refers to the ability of

suppliers to drive up prices. “This is driven by the number of suppliers of each key input,

the uniqueness of their product or service, their strength and control over you and the

cost of switching from one to another” (Mind Tools, 2016). Mind Tools (2016) further

noted that the fewer suppliers there are, the more power they have.

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Competitive rivalry refers to the number and capability of competitors (Mind Tools,

2016). Mind Tools (2016) stated that if there are many competitors that offers similar

products the rivalry will be strong.

Threat of new entrants Threat of substitute products

There is a low threat of new entrants in the beauty industry as the cost of entering is very high

The industry is highly competitive and developing new products costs a great deal of money

There is a high threat of substitutes as there are many different products, which can potentially aid in the same issues. There are also many cheaper alternative products, that serve the same purpose In order to succeed, a company must differentiate their product from the masses

Bargaining power of buyers Bargaining power of suppliers The bargaining power of buyers are very high, seeing that customers have a large variety of products that they can choose from Customers can demand quality and lower prices if they feel the need, and companies must satisfy this need

Suppliers have low bargaining power as there is a large number of different players in the market and a large supply of diverse products

Competitive Rivalry

Competitive rivalry in the beauty industry is very high, as there are many competitors that all offer similar quality products

The beauty industry is highly competitive

The beauty industry is not a very attractive market to entre, unless you offer a highly

differentiated product that sets you apart from the market. La Roche-Posay’s thermal water,

can be their unique selling point.

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3. Analysingthebrandandtheconsumer

3.1. THE CONSUMERS RELATIONSHIP WITH COMPETITORS Vichy

Vichy launched a program in order to develop close relationships with their consumers,

especially woman (L’Oréal Finance, 2014). The initiative was named “100 days, 100

women” and the first step was to complete an online diagnosis (L’Oréal Finance, 2014).

Thereafter 100 women were supplied with all the VICHY products they need for a full

100-day routine (L’Oréal Finance, 2014). The women could then share their experience

with others through a review platform (L’Oréal Finance, 2014). Vichy also provides a

membership for consumer who buy online (Vichy, 2016).

All you have to do is create and account by registering online at the “become a

member” section (Vichy, 2016). When registering for an account you get2 free samples

with every order, free shipping on orders over $25, preview and shop new products first,

your order history and you can save your favorite products (Vichy, 2016).

Vichy also has a blog named “The ideal skin blog”, which provides customers with

expert advice, videos, tips and trend information that changes everything (Vichy, 2016).

Eucerin

Eucerin launched a loyalty program via Social & Loyal named “Club Eucerin” for

customers in order to build relationships with them (Social & Loyal, 2014). When

customers join the club they can get loyalty points, which is redeemable for rewards for

any action they take and add value to the brand (Social & Loyal, 2014).

The actions that lead to rewards include purchasing their products, following the

company in multiple social networks, conducting surveys, giving contact information or

answering quiz games (Social & Loyal, 2014). Through this, the brand has managed to

attract thousands of users, increasing engagement in social networks, gathering

relevant information about consumers and improving the organic positioning of its web

site (Social & Loyal, 2014).

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They were the first cosmetics brand that trusted loyalty programs and through this they

collected a lot of information for consumers (Social & Loyal, 2014). They were able to

successfully launch a database with different segments for the consumers (Social &

Loyal, 2014). These segments consisted of types of skin, preferred products, purchase

channels etc. (Social & Loyal, 2014).

The number of their brand searches in Google increased massively and they were also

able to collect thousands of reviews on their products (Social & Loyal, 2014). Their

Facebook fans also increased by x3 and all of this is thanks to their technology provider

Social & Loyal, which is the pioneer solution of omnichannel loyalty programs (Social &

Loyal, 2014).

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3.2. WHAT MEDIA DO CONSUMERS CONSUME Goodman (2016) indicated that Millennia’s are currently the main focus of the media

and advertising agencies at the moment. According to Goodman (2016) Millennia’s

are regarded as the tech savvy bunch, and they focus on constantly being mobile

while generating sources of entertainment as well as guarding their personal time and

space. Goodman (2016) stated that in 2014 ninety percent of generation Y were using

smartphones, while 93% had access to the Internet. Goodman (2016) noted that only

53% were owners or had been owners of a tablet. Goodman (2016) stated that

television time or show watching had also grown immensely with 28% of Generation Y

having the ability to watch their favourite shows within 3 days after it had aired. Due to

these applications such as Netflix, Amazon Prime and Youtube have become very

popular amongst the Millennia’s. Goodman (2016) wrote that online news sources

through applications or even social media is on the rise with an 85% increase in

readership through social media and the various news applications. Goodman (2016)

indicated that most respondents when asked stated that they would by 2020 be

watching all series on a T.V enabled with Internet.

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3.3. WHAT DO CONSUMERS CURRENTLY THINK, FEEL AND DO Think (Rational) The consumers have dissolution of the world they live in Feel (Emotional) Consumers feel scared and worried about the future of the earth and humanity Do (Behavioral) Consumers have a strong need to connect with friends as a result of this

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3.4. WHO IS THE TARGET MARKET The current target market of La Roche-Posay is upper income consumers aged 25 and

up, and there is great potential for them to grow. As briefed by the client, they are

perusing a younger market. The youth today have a need to make a difference and

this can resonate beautifully with La Roche-Posay’s saying “a better life for sensitive

skin”.

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3.5. CONSUMER INSIGHTS AND ACTION POINTS Consumer Trend: Excessive use of social media platforms for example Twitter, Snapchat,

Instagram and Facebook

Consumer Insight: I have a fear of being forgotten (that’s why I post so much on social

media)

Action Point: Create an association between La Roche-Posay and consumer’s

importance or legacy with the help of different social media platforms

Consumer Trend: Social Awareness and Green Movement

Consumer Insight: I want to make a difference (that’s why I give back to the

community and recycle)

Action Point: Enable consumers to make a difference in their community and globally,

with the help of La Roche-Posay

Consumer Trend: Live Video Streaming

Consumer Insight: I have a fear of being irrelevant (that’s why I post so much on social

media)

Action Point: Enable consumers to see and share real-time content with the help of

applications such as periscope and Snapchat

Consumer Trend: Spending large amounts of time on social media

Consumer Insight: I rave an emotional connection (that’s why I spend copious amounts

of time online connecting with people)

Action Point: Enable consumers to connect with other consumers on a global scale with

the help of La Roche-Posay

Consumer Trend: The rise of Applications

Consumer Insight: I am impatient and don’t want to wait (that’s why I shop online on

applications like Superbalist)

Action Point: Offer consumers a application powered by La Roche-Posay, that is fast

and easy to use

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Consumer Trend: Adventure Craving

Consumer Insight: I buy experiences and not products (that’s why I buy products that

promises adventure like traveling)

Action Point: Offer consumer an adventurous exploring experience powered by La

Roche-Posay

Consumer Trend: Growth of beauty industry

Consumer Insight: I want to look good so that I feel good (that’s why I buy so many

products to improve my appearance)

Action Point: Offer consumer a promise that La Roche-Posay can make them look

good, free of social guilt

Consumer Trend: Augmented Reality

Consumer Insight: I want to feel that I can be anyone, anywhere (that’s why the idea of

virtual reality excites me)

Action Point: Offer consumer an application that allows them to scan photos that turn

into videos, so the can feel that they are living that person’s life through their eyes.

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4. SWOTandKeyIssues

SWOT

Strengths

- They have a unique selling point in terms of their thermal water

- La Roche offers a wide range of different products; this means that they appeal

to a bigger segment seeing as they offer a product for every skin type

- La Roche-Posay does not test on animals, which will result in more consumers

supporting the brand because of this

- La Roche-Posay is part of the cosmetic giant L’Oreal, which results in a lot of

spending power and influence on the cosmetic market

- La Roche-Posay has a relevant high pricing when compared to Nivea, which

results in consumers perceiving the brand as of a high quality because of the

pricing

- La Roche-Posay is only available in selected outlets, which will lead consumers to

perceive the brand as exclusive

- La Roche-Posay makes use of active ingredients in their products, which means

that the product is classified as a cosmeceutical and cosmeceuticals is the

fastest growing division in the beauty industry

- La Roche-Posay works with dermatologists, which results in products being

developed under expertise supervision

- They are a successful brand in France and therefor they are not entirely new to

the industry and even though they are new to South Africa, there are a lot of

information online and write ups about the brand

- They invested a lot to get people to associate them with skin cancer, which a lot

of people are concerned about

- They work with dermatologists which could help them become one of the more

preferred skin care brands amongst the south African dermatology centers

- The fact that they belong to a bigger brand, L’Oreal, could lead to customers

earning trust in them quicker and they might be willing to pay that extra for the

brand

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Weaknesses

- There is a severe lack of online and digital content

- There is not enough media channels that are used for promotions

- La Roche-Posay was recently accused of testing on animals which resulted in a

negative perspective surrounding the brand

- They are entering the South African market where people tend to be loyal to the

brands they use at the moment and they will struggle to get them to change

- They are not the more affordable type of brand as other competing brands

have products that are less expensive

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Opportunities

- The trend of digital marketing is big under the youth market, therefor La Roche-

Posay has the opportunity of creating an integrated digital campaign in order to

maximally appeal to this market

- The trend of social awareness and making a difference is growing especially in

the younger consumer market

- The younger market have the need to feel connected, this can be taken

advantage of

- South Africa consists out of various ethic varieties, this creates an opportunity for

La Roche to develop special products for each skin tone

- Even though there are a lot of competitors, not all of them specialise in sensitive

skin alone, and they have the opportunity to attract a lot of customers because

the a big portion of the population suffer with sensitive skin

- They could expand rapidly in a new market (South Africa) if they invest in a

brilliant marketing strategy.

- They offer more than just treatment for sensitive skin, they sell hair care, make up

and body care which could lead to customers who like one of their product

offerings, to try another

- The fact that they were in South Africa and a lot of dermatologists did prefer the

brand could lead to them suggesting the brand to patients with sensitive skin

problems

- Life tracking is a big trend, and there is an opportunity for La Roche to integrate

life tracking into their marketing

- Cosmeceuticals is the fastest growing section of the beauty industry, which gives

LA Roche a great market to sell their product in

- Wearing less make-up is a big trend in the beauty industry, which gives La Roche

an opportunity to

- Unique packaging is a big industry trend, this gives La Roche an opportunity to

think out of the box and come up with creative packaging

- Anti-pollution is another industry trend that La Roche-Posay can take advantage

of by developing products that protect consumers against pollution

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Threats

- The majority of South Africans are unaware of La Roche-Posay, which means

that there is no brand awareness and that a lot of money needs to be spend in

order to create awareness and to sell the product to South Africans

- The South African economy is facing difficult times, and this would impact the

spending power of possible clients of La Roche Posay

- Customer are becoming more aware of things such as animal testing, and

recent Facebook posts have stated that La Roche tests on animals which would

cause customers to perceive the brand in a negative light

- The possibility of the extinction of their water supply

- They are interring a market with a lot of competitors and it could lead to massive

investments to become successful

- South Africa has various languages, seeing as it’s a French brand the message

might be miscommunicated in the different languages

- Snapchat is a growing trend, and seeing as La Roche is not on Snapchat, gives

their competitors an advantage

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KEY ISSUES

La Roche-Posay needs to develop and integrated digital strategy in order to attract a

new generation of consumers

La Roche-Posay cannot ignore the fact that they need to increase their online and

digital presence in order to appeal to the younger target market

La Roche-Posay needs to develop a digital strategy that enables millenials to make a

difference in their community and to enable these consumers to connect with others

globally

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5. Definingtheroleofcommunication

Objective To develop an integrated digital strategy to attract a new generation of consumers for

La Roche-Posay through technological and digital disruption.

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6. Definingthetargetaudience

6.1. SEGMENTING THE MARKET Demographic Segmentation - AGE The market can be segmented on basis of demographics, and more specially age. As

our target market has already been defined as the 15-25 year old market, but this

whole market cannot be target by the same strategy as different things appeal to

these different ages. The two segments within this group is as follow:

1. 15-18

2. 19-25

The market we will focus on targeting is the 19-25 year old market. The reason for this is

the fact that we as students are closer to this market and has more experience with this

market. If this market is targeted correctly, the 15-18 year olds will closely follow as they

look up to this market, but this market can be segmented even further.

Demographic Segmentation – GEOGRAPHIC In order to get the ball rolling, we have decided to target a few geographic locations,

specifically well-known cities with a lot of influence. Just like with the age segmentation,

other smaller cities look up to these cities’ as innovators. The focus will be on the

following cities:

1. Cape Town

2. New York

3. Paris

4. Milan

5. Tokyo

6. Peru

7. Barcelona

8. Los Angeles

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Demographic Segmentation – INCOME La Roche-Posay is a relatively expensive product, and not all consumers will be able to

afford the product. Therefore it would be a waste of time to target lower income

consumers. The market can be segmented as follows:

1. Lower-class

2. Middle Class

3. Higher Class

Only the middle and high class consumers will be targeted, as lower class consumers

would not be able to afford the product

Psychographic Segmentation The millennial 19-25 year old market can be divided into different psychographic or

behavioral groups, but only the following groups will be targeted:

1. The Do-Gooders

3. The Green Activists

4. The Adventure Seekers

All of these three segments have one thing in common; they want to make a

difference, but we will be focusing on the Do-gooders.

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DAY IN THE LIFE OF

The Do-Gooders

Dan is a 19-25 year old living in a major city, let’s say Cape Town. Dan is most likely still

busy studying for his degree in living in a place like Vredehoek or Gardens. Dan is very

cautious in the way he lives, and is aware of all of the global problems. Dan is a middle

or upper class individual, still living off of his parents. He wears brands such as RVCA and

Nixon and probably drives a small polo. He has a Mac Book and Iphone and probably

an unhealthy relationship with apple, but he is also very charitable. He has the contant

need to give back. His heart breaks every time a beggar asks him for money and he

has nothing on him, he want to give back. But how? He barely has the time to organize

charitable activities, so he just does the basics. When there is a fundraiser he

participates and he always adds R2 at KFC. He uses social media, but the things he

shares is global new, fundraising initiatives, petitions etc. Dan would say “I can make the

world a better place”.

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6.2. WHAT WE WANT CUSTOMERS TO THINK FEEL AND DO We already covered what consumers currently think, feel and do, but what do we

want them to think, feel and do? The strategy is how we will get there.

Think – like they want to make a difference

Feel – They can make a difference with La Roche-Posay

Do – Buy La Roche-Posay

Most of consumers want to make a difference, but they do not know how. This strategy

would make them feel that they actually can make a difference, and the only way to

do this would be through supporting and buying La Roche-Posay.

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6.3. INSIGHTS

- I have a fear of being forgotten and irrelevant (that’s why I post so much on

social media)

- I want to make a difference (that’s why I give back to the community and

recycle)

- I am impatient – I want things immediately (that’s why I shop online on sites like

Superbalist)

- I have a no attention span (that’s why I can’t watch tv without being on my

phone)

- I crave emotional connections (that’s why I spend copious amounts of time

online connecting with people)

- I buy experiences, and not products (that’s why I buy products that promises

adventure like traveling)

- I want to be appreciated and accepted (that’s why I buy certain products so I

can belong to a group)

- I like I’m important (that’s why customer service and personalization is so

important to me)

- I want to feel alive (that’s why I engage in thrill seeking activities)

- I have the need to look good (that’s why I buy so many products to improve my

appearance)

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6.4. WHAT CONTACT POINTS MUST BE ESTABLISHED Bluetooth Beacons

These need to be put up around areas in the various cities. For example in Cape Town,

places like Lion’s Head, Big Wheel, Beerhouse etc. Bluetooth beacons will interact with

consumer’s smart phones, that Bluetooth is on. Many consumers now leave their

Bluetooth on seeing as they wear activity trackers. This will then play a video powered

by La Roche Posay. The reason this will work is the fact that millenials are glued to their

smart phones, and rarely look up. This means they do not notice posers as much as they

used to, but if it interacts directly with their phone, it will catch their attention.

Video

The video will then begin to play on the consumers phone. The video will be based on

the strategy and no longer than 30 seconds (as millenials have no attention span) that

would convince consumers to download the application.

Application

The application will be designed and powered by La Roche-Posay, it will allow

consumers to challenge each other to make a change and to make a difference. Live

Footage can be recorder and share with the help of periscope to consumers globally.

Social Media

The application will also allow consumers to share their experiences to their social

media platforms and encourage others to join the movement.

Word of Mouth

Positive word of mouth on the movement will be spread and it will convince others to

join the movement.

Out of house advertising

Posters will be put up where consumers can scan the photo and the photo will

transform into a video of a story of one of the users. This will allow consumers to live in

the moment and literally make the photo come to life. The photo can only be scanned

with the application

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7. Definepositioning

7.1. WHAT S LA ROCHE-POSAY’S POSITIONING La Roche-Posay skincare is formulated with high efficacy and safety standards to

address the needs of sensitive skin.

Figure 8: Positioning

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7.2. KEY MESSAGE AND KEY BENEFIT The key message that La Roche-Posay wants to communicate is the fact that they

make the world a better place, through offering a better life for sensitive skin. It promises

consumers a better life, if they purchase their products. La Roche’s key message, must

come through in the strategy and resonate with the strategy.

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8. Strategy

8.1 BIG IDEA Making the world a better place, one connection at a time

Figure 9: Big Idea

80

Based on the following insights (supporting evidence):

- I want to make a difference. Millenials have a strong urge to make difference

and give back to the community by helping the homeless, donating to shelters,

recycling and living consciously.

- Fear of being forgotten and being irrelevant. The fact that millennials have a fear

of being irrelevant or forgotten and this is what drives their social media

addiction. This app will allow millennial to leave legacy of the things they have

done to change the world.

- I crave emotional connections. This application will allow millennial to connect

with like-minded people from all around the world, challenging others to make a

difference and with the help of periscope, living through the eyes of someone

from a different country. Periscope will be linked to the app and allow

consumers to live stream the difference they are making.

- I want to feel alive. Millenials crave adventure and thrill seeking activities and this

app will satisfy this craving while also giving back to the community. Millenials will

have to explore the area they live in in order to find Bluetooth beacons, which

will allow them to challenge people form different countries to give back to the

community and make the world a better place.

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8.2. CONSUMER JOURNEY 1 - Bluetooth beacon

Millenials are constantly on the move and searching for new adventures while still being

glued to their phones. This Bluetooth beacon would connect to the millenials phones

and start playing a video.

2 - Video

The video that will then start to play would be a sort of advertisement for the

application, no longer than 15 to 30 seconds seeing that millenials have low attention

spans. This video will provide them with a link to download the application.

3 - Application

The application, once downloaded, would allow the millinials to connect with friends

and strangers form around the world and challenge them to make a difference in

order to send out a challenge, however consumers will have to explore the area to find

the beacons. When another millennial accepts the challenge they have to upload a

video of them doing it to Periscope. This would allow other users to live through

someone’s eyes in a different country. The video can them be shared to social media.

When a challenge is completed points would be awarded and you will be added on a

global ranking system.

4 - Social media

The application will allow millenials to share their story on social media and it would be

linked to Instagram, Facebook, Snapchat, Twitter etc.

5 - Virtual reality posters

Various posters would be put up in areas like bus stops; train stations, airport etc. and

the poster would contain a certain image. Consumer would then be encouraged to

82

scan the photo with help of the application and the photo would come to life as a

video on their phones. This could also be used as an in store display.

6 - In store displays

Seeing that skincare is the furthest thing from a millenials mind the buzz around the

application might encourage them to buy La Roche- Posay products. In stores where

La Roche-Posay is available there would be a in store display similar to the virtual reality

poster which can also be scanned and turned into a video. Consumer would hopefully

then be enticed to be the brand that powered the application.

Figure 10: Consumer Journey

83

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