Ch. 8 - Segmenting and Targeting Markets

Each and one of us is a unique individuality with his/her own needs and wants. However, consumer markets as well as business markets has similar characteristics that make them to desire similar products. Therefore most successful organizations practice market segmentation, which contribute to better overall functioning of the firm. Lancome uses specific strategy for market segmentation called demographic segmentation which divides market into groups based on demographic aspect, such as gender and age. It helps Lancome to better target its consumers.


Lancome is originated as a perfume company, but the company has grown rapidly and later expanded its offering to cosmetic and skincare products for men and women. Its women's collection is much broader than men, where men's collection is directed mostly to older men.The company wanted to diversify from its status as a leading women's skincare manufacturer by using its expertise and technology to discover the differences between men and women aging process. In
2007 they launched skin care range, first in Europe and not a long later it entered the US market, that is specific to the male consumer. Targeting the older male generation, was a smart move by the company, because figures show ,that the senior consumer group is the fastest spending group in US and European markets.

In women's sector Lancome focuses on both, older and younger women. The company's older female consumers are interested mostly in intensive skin products; such as wrinkle release and anti-aging. The younger women seek for more basic products; such as proactive skin care products. In 2011 Harry Potter beauty, Emma Watson became the new Lancome's youngest ambassador. She launched Rouge in Love Lipstick campaign, which was aiming to lure young customers away from gloss and back to lipstick. Watson had brought a fresh spirit to the brand which contributed to gaining younger consumes.

Ch. 11 - Developing and Managing Products

Ideas for new generations of products have various origins. Lancome's resources for developing a new product are combinations of customer's feedback, research and development and of course constant innovation and quality, which are part of Lancome's mission. Innovation is Lancome's essential component for new product development. Lancome cares about its customers, and values its clients opinions about their cosmetics. Taking all the judgement into consideration, makes them work continuously on their product's innovation based on skin types, age, and continent . All the information is forwarded very thoroughly to the Lancome's researchers, so they can transform dreams into reality.

Teint Miracle

For leading luxury cosmetic company such as Lancome, beauty is ceaselessly reinvented living science. Therefore, for almost eighty years Lacome is challenging the limits in technology and creation. Lancome relies on the three research and development centers, here in the United States, in France and in Japan, and all of its products, no matter where is manufactured has the same quality. The company employs 3,000 researchers, who work together with renowned scientific name in biology, dermatology, pharmacology and even psychology. Lancome's laboratories are one of the most advanced laboratories in the world, and for that reason their researchers posses great knowledge about the skin, its mechanism and its needs per age, type, and per continent. Lancome pioneered in neuro-cosmetics technology, which is about product with ingriedients that can help nerve endings for better cell communication. Another pioneer discovery is Lancome's new-to-the world product, Teint Miracle foundation.

                               Genifique yough activator

Lancome science discovers the inner light of perfect skin and recreates it. After ten years of research, seven international patents pending, Teint Miracle opens a new era for cosmetics.

The company considers the skin as a living organ exposed to stress and emotions. During long research time, Lancome's profesionalists had found a special protein characteristic that keeps skin youtful longer. This amazing formula, which knows its worldwide success now and which is desired by every woman today, is called Genfique yough
activator.

As I mentioned earlier, Lancome has its laboratories in three continents. It is a international brand which adapts its products to every market, and the Teint Miracle is a great example since it was firstly designed for Asian women; however its excellent formula succeeded all over the world.

Ch. 12 - Services and Nonprofit Organization Marketing

Goods and services are the outcome of human efforts to meet the wants and needs of people. Economic
production is divided into physical goods and intangible services. Service refers to applying human or mechanical efforts to people or objects. Sometimes it is difficult to distinguish between manufacturing and service firms, however for many manufacturers it is the service that contributes to the firm's success the most. But still we can differentiate services from goods by their unique characteristics, one of which is service quality. Rating the service quality has become a challenge because it is much harder to rank than tangible goods. Service quality is evaluated through a few very important aspects of every service. Lancome service quality is uncontested because it  fulfills the requirements by which customers evaluate the quality of particular firm.  Lancome is committed to provide first-rate quality service customers can trust. Lancome's clientele can be sure to enjoy both the best in product innovation and personalized advice through its beauty consultation. Lancome realizes that the best way to promote the image of their brand is for every employee, especially the ones who work with the customers, to accurately represent that image. Therefore when Lancome recruits employees, they train them about every product they sell. Assurance of Lancome's knowledgeble consultants make the customer feel comfortable and that they can trust the firm. Another component which Lancome implements as part of its quality of service is responsiveness. Lancome strives to answer all e-mail queries within two working days. In addition, the company is dedicated to provide customers with a superior level of customer service until midnight during week days and until 7pm on the weekends. Empathy, the art of seeing a situation through a customer's eyes, is another essential component of company service quality. Lancome's employees always care about this aspect and they provide their clients empathetic service. Within the first moment, customers are welcomed and asked about their preferences. Every customer is treated individually with a one-on-one consultation in order to recognize the customer's genuine needs and to offer professional advice if needed. Moreover, customers are offered trials and demos of specific cosmetics so they can feel more comfortable with the particular product. Customer service representatives perform the service accurately and dependably every time.

(Lancome Internal Marketing )

Lancome realizes that customer satisfaction is deeply dependent on the performance of a company's staff which can be seen as the company's most important marketing tool. Therefore, the company implements an internal marketing strategy across its workforce. The objective of internal marketing is to align every aspect of the company's internal operations to ensure that the staff is as capable as possible of providing value to customers. When the company works in a coordinated way, it can provide a more consistent experience to its customers.

One of the non profit organizations supported by Lancome's was Mrs. Carla Bruni-Sarcozy Foundation, which aims to encourage access to culture, education and knowledge in order to fight exclusion and reduce inequality. Through program under the name "Lancome revelations" which aimed to introduce students in their last year of high school to the creative professions, to reveal their true artistic talent, and to accompany them as they pursue further study."Lancome revelations" program supported students throughout whole year in organizing artistic workshop, offering personalized educational guidance, helping to prepare for the entrance exam to the best art schools. This program was organized in twenty high schools in disadvantaged areas across whole France. Supporting non profit organizations is always a good move, which creates a positive brand image.

Ch. 10 - Product Concepts

In 1935, Armand Petitjean had founded his own brand Lancome, and from the very first day, he knew he wanted only a prestigious brand or nothing. He took up the challenge, and up until today, Lancome is a high end cosmetic brand serving a luxury products in 163 countries. The French perception of elegance and beauty are still at the heart of the brand's identity. The name "Lancôme" was inspired by the name of the castle "Le Château de Lancosme". The only change was that the silent "s" was substituted with a circumflex, rendering a French name that everyone could pronounce. In addition to the name, the city's name -- Paris -- was added to associate the brand with French chic. However, the design of the logo has experienced some changes since it was first created in 1964. Also, the wild roses growing around the ruins of the castle inspired Petitjean to make the company's trademark a single golden rose. The symbol represents Lancome's brand philosophy: femininity, joie de vivre and elegance. The rose has changed from from a cut flower placed sideways at the bottom of print ads to the blooming flower standing tall we see today. Lancome often incorporates rose scents and botanicals into its products. Today, the French rose is widely recognizable as a symbol of Lancome.

Lancome's products are shopping products. They are available through various retail channels. They are considered high quality, luxury products, therefore some people might consider a substitutes. Lancome's commitment is to uphold the highest standards of safety and quality for all the products it makes and sells. Lancome is in full compliance with FDA regulations in all countries where its products are sold. 

Lancome's opening product was a collection of fragrances. The product was enormously successfully, leading Petitjean to expand into skincare. The first skincare product was a multi-tasking repair cream called Nutrix, which is still available on the market after 78 years. Isn't it amazing that we have access to the same cosmetic as the "women who wore gloves" had? In 1938, the brand expanded further into cosmetics. Today, Lancome's product mix is still the same and offers fragrance, skincare and makeup products. Due to innovations and the desire to meet a greater range of customer preferences, Lancome expanded its cosmetic line depth widely. 

Lancome's packaging is very simple, yet very elegant. The rose flower which has appeared on products packages, as well as in ads, serves as the single most differentiating factor for Lancome. The company is aiming to use eco-friendly packages in order to facilitate recycling and reduce environmental damage. For example, the company began using recycled cardboard from papermaker Tullis Russel for the external packing of its perfumes. Tullis Russel offers recycled cardboard that preserves the look, printability and technical performance of the original packaging. Even the glosses are packaged in eco-friendly cardboard packaging certified by the Forest Stewardship Council.

Ch. 17 - Personal Selling and Sales Management

Personal selling occurs when a sales person who works for a company builds a relationship with a customer in order to determine their needs and increase sales. Many people probably wonder whether in these times with such sophisticated technology salespeople are still necessary.

Catherine, Duchess of Cambridge
is a loyal customer of Lancome and
among only a few in Britain sent a bottle
of Lancome's Vissionaire 'miracle' serum
"to try as a 'goodwill gesture'".

The answer is yes, they are, and they always will be. Salespeople are very important for companies including Lancome. Personal selling in many cases is more effective than any other form of promotion in obtaining a sale and gaining a satisfied customer. When a customer of Lancome wants to know more about a product he is interested in, he goes to the store because he knows he will be offered a one-on-one consultation. All salespeople who work at the Lancome counter are specially trained to perform these consultations. Because each customer is very valuable to Lancome, salespeople care about the company's long-term relationships with its customers. They want them to be satisfied and happy every time they purchase a product. In 2012, Lancome launched an auto-replenishment program for both their loyal and new customers that has convenience and service as its main goals. Analysis shows that a typical Lancome customer usually buys a new product in store because they receive a free consultation about it. If they are happy with a product, they usually replenish it online. This way of shopping works best with cosmetics that are used routinely such as mascara, foundation or moisturizers. If customers are willing to join the auto-replenishment program, they can set the delivery frequency and receive these products with free shipping and a deluxe mini gift. Moreover, they can also order different items and with free shipping as well so that they can enjoy the convenience of having their favorite cosmetics delivered to them automatically. Usually, the company asks for reviews on gifts or samples they sent with the purchase made on Lancome.com. This way, the company gains a lot of data about customers and their needs. For Lancome, the auto-replenishment program is a great opportunity to understand its customers and how they can improve the quality of customer service on an individual basis so that each of their customers can be treated in a unique way. The program increases loyalty, but it is also a chance to obtain data to inform business decisions. Another loyalty program is Elite Rewards, which I discussed in my chapter 6 post. Building customer relationships is crucial for Lancome, because they want to satisfy every customer.

Lancome's sales system is very well organized. All sales people at Lancome are very professional, enthusiastic, friendly and knowledgeable about the products. The company provides professional training in makeup, skincare and fragrances to all employees. In addition, trained staff get to try out all products so they can understand how they work and to be able to better advise customers about products. Lancome also offers free trials and demos to clients. People love these services and Lancome likes to do it because it is a great way to get the client.

Ch. 16 - Advertising, Public Relations and Sales Promotion

Julia Roberts

 

Lancome's mobile ad

Lancome is a very well-recognizable brand throughout the world. It's considered as the third leading luxury beauty brand in the world and the top-selling brand in selective retailing. No matter how well established the company is, it should constantly maintain brand awareness and market share through advertising, public relations and sales promotions. Advertising is an important and the most effective part of a company's promotional activities. It draws attention to both existing and new products and persuades consumers to purchase them. When Lancome launches a new product, the company advertises it widely in print, television and via mobile advertising. For example, in order to boost sales through mobile commerce, Lancome is pushing a new product line using eye-catching mobile banner ads in New York magazine's "The Cut". The advertisement's design and clear call to action are likely enough to intrigue a consumer into clicking the ad, bringing the consumer automatically to Lancome's mobile-optimized site where they can watch a video about the entire collection of products or shop online. 

The company uses product advertising techniques to promote its merchandise.

Lupita Nyong'o 

It is difficult not to recognize the Lancome brand because of Lancome's employment of iconic and beautiful stars in its campaigns including Isabelle Rosselini, Julia Roberts, Emma Watson, Kate Winslet, Penelope Cruz and most recently the Oscar-winning actress Lupita Nyong'o, the first African ambassador to represent the cosmetics giant.
They all represent beauty, joyful femininity, glamour and elegance. The commercials create a kind of fantasy for the viewer, making women believe in the beauty of life.
Since its products are sold worldwide, Lancome has hired models with diverse ethnic backgrounds and nationalities in order to target specific markets around the world, employing local models and celebrities to appeal to regional customers. This strategy has have proven successful for Lancome and L'Oreal Luxe in general; Lancome's sales in Asia and North America grew by 8.3% in 2012.

As part of its public relations strategy, Lancome's marketing managers do much to promote responsible, caring and high-quality image. Public relations (PR) play an important role at Lancome where one of the company's PR tools is press relations. For instance, since 2010, Lancome has organized an annual Genifique Day for the purpose of raising funds for St. Jude Children Research Hospital. During eight regional events and on October 24th and October 25th Lancome donates $7 directly to St. Jude Children Research Hospital for every bottle of Advanced Genifique Youth Activating Concentrate, Genifique Eye Light-Pearl or Genifique Yeux sold, to underscore Genifique’s 7-day radiance results. In addition, throughout the month October, the brand

invites people on Instagram or Tweeter to post pictures of themselves making a "hand heart" gesture along with the #LancomeGivesBack hashtag. Lancome will make a $1 donation for each post. Genifique Days has been successful in more ways than one. As Stacy Mackler, vice president of public relations and communications at Lancome, notes,“Not only does this approach allow us to give back to a significant partner, it allows our customer to get involved beyond simply purchasing a product. [...] The ability to share the in-store brand experiences through social media only enhances our customer engagement with our products and with the efforts behind the fundraising,”
Another way of advertising Lancome products is though Gift With Purchase promotion where both new and returning customers can choose seven complimentary gifts depending on the amount they've spent. This method allows customers to sample products with the hope that they will return to purchase the ones they like.

Ch. 14 - Marketing Channels and Retailing

Lancome represents selective distribution. It is available in only a few select locations such us departments stores, cosmetic stores, own-brand boutiques,  and on dedicated e-commerce websites. The purpose of selective distribution is to have the products available enough for customers to purchase and maintain the prestige of the brand as Lancome is high-end cosmetic. Lancome is distributed in over 2000 stores nationwide, and in more than 160 countries globally.
I recently visited the most busy Lancome counter in New York City which is located inside Macy's at Herald Square 34th Street.

This particular Lancome carries all the products available on the market including Bienfait multi-vital SPF 30 cream. They do a lot of "gift with purchase" promotions. Their recent one is another gift with purchase promotion available on Macy's website and in-store. The good thing about this promotion is the fact that customers can personalize the lovely 7-piece free gift with any $35 purchase, or they can get even more with any $70 purchase. Because Macy's at Herald Square is itself an extremely busy department store, I don't have to mention how busy the Lancome is. The manager told me that this is the best-selling Lancome location in New York City. The location is great and millions of tourists make the area very crowded which is a big attribute for business. The Penn Station stop is conveniently located just by the Macy's entrance. Pennsylvania station is the main transportation hub in New York City serving over 600,000 commuter rail and Amtrak passengers a day which makes it the busiest transportation facility in the United States. What more could a retailer want? As a luxury cosmetic brand, Lancome indicates its products quality by its traditional prices, however, customers can always take advantage of special offers on cosmetics. The brand offers a variety of promo codes to get the best deal possible, for example, 15% off $49 or more plus free standard shipping.

The overall physical appearance is very elegant and spacious looking. The decor is mainly white with some black accents. Merchandise is presented in a very orderly manner which helps the customers better notice or locate products. For example, there is a special counter for its best-selling fragrance La vie est belle with a crystal chandelier hanging above the items on display (see the picture on the right taken during my visit). Even though the store is very busy, the personnel make use of the suggestion selling technique to encourage customers to purchase products. Each potential customer buying a skin care product is offered a one-on-one consultation with a qualified member of the staff.