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.