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.

Ch. 6 - Consumer Decision Making

Walking through any department store, it is hard not to come across a Lancome counter. But what makes people stop by and purchase their very first or their favorite product from Lancome? Before purchasing a product from Lancome, the buyer goes through a consumer decision process which all of us go through in order to consider every important aspect of a potential product. The first and most important stage of the process is need recognition, that is, where the consumer recognizes what product is able to meet their needs. The customer has needs and wants which are influenced by internal or external stimulus. For example, an external stimulus such as a recommendation appealing to the good quality of a moisturizer can increase the likelihood that the moisturizer will be purchased.

An example of a strong external stimulus is Lancome's Elite Rewards loyalty program which seeks to increase customer acquisition and retention.

Naturally, when customers  recognize a need, they look for specific information about it. People have many opportunities in order to find valuable information regarding a cosmetic they are interested in. One way of searching is internal information search such as looking at previous experience with a product. Personally, I think this is a very reliable method if you don't want to make a mistake with the purchase decision. Lancome's clientele usually return to purchase more cosmetics. An example is Bienfait Multi-Vital Day Cream which  enjoys a very good reputation among customers who often return to purchase more of the product. A different way of searching for particular information about a product is external information source. Customers review opinions and reviews available from nonmarketing-controlled source, such as those which we can read on web forums, blogs or consumer opinion sites, to get a sense of how others view a product. Second form of external information search is marketing-controlled information source, such as mass media advertising. Lancome spends a great amount of money to advertise its products well and to provide reliable information about its product. In addition, Lancome's famous faces like Julia Roberts,Penelope Cruz or Kate Winslet, make Lancome a trusted brand and their products more desirable. 

Another stage of the consumer decision process is the evaluation of alternatives. This stage is where customers evaluate all the advantages and disadvantages of the product one more time before making a purchase. Usually, Lancome's clientele rely on the information made available by the mass media or base their decision on the quality of and information provided by customer service. It looks like Lancome greatly meets its clientele's expectations. According to Forbes magazine, the brand's sales were up 10% in 2012.

Ch. 5 - Developing a Global Vision

Lancome has been on the market since 1935. It began selling its products in about thirty countries in the first six months of the company's existence. The company has been a global brand since it became a subsidiary of L'Oreal Group in 1964. It entered the United States in 1950 and now sell its products in over 160 countries around the world. Its products  are sold at department stores, exclusive beauty stores, duty-free shops and boutiques. Lancome owes its global market growth to country-specific advertisement.

One of Lancome's advertisements that target the
Chinese market.

For example, Lancome developed  the Teint Miracle foundation in their Japanese laboratory with the Japanese consumer in mind. However, it became a global success because woman around the world wanted to have a beautiful skin like the Japanese. Lancome began selling its products in Japan in 1978 and it now has 112 shops, mainly in department stores. But Lancome's real conquest is the China market where it has spread into more than 40 Chinese cities and 18.000 retailers.

However, the company's tremendous success in China is mainly due to the web and by the adaptation to the local culture. Many Chinese customers for instance still do not feel comfortable making their payments online. In order to get around these concerns, Lancome's e-boutique allows clients  to pay for their products at the time of delivery. In addition, the goods are delivered by bike to improve the delivery time even though this method o delivery is incompatible with the Western idea of  luxury brand. Another strategy for enhancing e-market in China was creating the community website Rose Beauty. Rose Beauty not only raises awareness about products among clientele but also gathers information about the needs and desires of customers. The uses Chinese local social networks (Kaixin, Renren, Sina Weibo) to help brand build one of the biggest online community in cosmetics.

Lancome has grown to become one of the largest and recognizable cosmetic brand in the world with sales exceeding 350 million dollars in 2010.

Ch. 4 - The Marketing Environment

Bienfait multi-vital SPF 30 day cream from Lancome, a brand of the Luxe division of L'Oreal Group, is product highly recommended by many women. Only by reading reviews about it can I understand why it is purchased even by young women in their twenties. The formula of the cream was designed especially for women with visible effects of environmental damage and dehydrated skin. The actual target market of it is the early Y generation and below. Sunscreen, one of the ingredients of the cream, helps prevent sunburn and prevents premature aging of the skin caused by the sun. Although the main purpose of this cream is protection and moisturization, it contains a variety of other beneficial ingredients such as a complex of nourshing vitamins like E, B5 and CG. Women including me always love good moisturizers because it gives a comfortable feeling and makes the skin hydrated and healthy looking. Unlike many facial creams on the market that only moisturize and nourish the skin, Bienfait multi-vital SPF 30 also offers sun protection and so provides all a woman needs for her skin. This combination of ingredients makes it a unique and desirable cosmetic on the market.

There is a large variety of products on the market, but when it comes to picking one for yourself you want the best available product for a good price. For a luxury brand like Lancome, forty six dollars per good quality cream is relatively affordable in the eyes of regular customers wanting good cosmetics. The company provides generous complimentary samples with purchases so that people can get to know Lancome's products and get more for their money.

Like many companies today, Lancome uses social media to increase brand awarness. For Lancome, social media are important because through them, managers can listen to and engage their clients. Lancome relies on web sites such as Lancome.com where user-generated content coexists with product descriptions and where customers can invite their Facebook friends and freely discuss Lancome's products. By combining data from online customer purchases made through Lancome's website and data extracted from their customers' social media profiles (e.g., Facebook), the company gets to know its clients. This process helps them to predict likely future purchases and drive advertizing and rewards campaigns in order to offer clients the right incentives to make those purchases.