1. Welcome To Our presentation
Topic-
Department- BBA
Course Name: PRINCIPLES OF MANAGEMENT
Course Faculty:
Group name-
Section:
2. Table Contents
Topic Slide no
Executive summery 03
History 04
Organogram 06
Literature Review 7-8
Finding Analysis 9-17
Recommendation 18
Conclusion 19
3. Executive Summary
The proposed strategy is based on the research conducted that incorporated a large number of
different sources. Apart of articles, publications and scientific newspapers, we also applied several
tools in order to deeper understand the current strategy and positioning of Lancôme in the luxury
beauty segment:
1) Online survey with more than 150 people participated;
2) Consultations with and insights from people currently employed in beauty industry
3) Observation of company’s customer profile
4) Visits of the points – of – sale (laRinascente, etc.)
4. History
●1935 Armand Petitjean, a 20-year veteran of the cosmetics
business, launched Lancôme.
●1937 Lancôme created Nutrix.
● Tresor fragrance debuted in 1952
● Available in 98 countries around the world in 1955
● Acquired by L'Oreal in 1964
●Isabella Rossellini signed in 1981.
●2003 Gucci Westman was hired as international artistic
director.
● 2013: Lancôme stared a partnership with Alber Elbaz,
Lanvin’s designer.
5. Current Organizational Chart:
Chairman of
the Board &
CEO
EVP, Admin
& Finance
Managing
Director
Operations
EVP
Research &
Innovation
Managing
Director
Strategic
Marketing
Department
Managing
Director of
Human
Resources
President,
Consumer
Products
Division
Managing
Director of
Luxury Products
Division
Managing
Director of
Active
Cosmetics
Division
General
Manager of
Professional
Products
Division
Managing
Director of
Asia –
Pacific Zone
Managing
Director of
Latin
America
Managing
Director of
North
America
Managing
Director
Africa, Middle
East Zone
Managing Director
of Corporate
Communications,
Sustainable
Development&
Public Affairs
6. Literature review
What is swot analysis?
◘ Structure method
◘ Evaluates strengths, weakness, opportunities and threats
◘ Combine strength and opportunities
Swot is important Because:
◘ Measure affections and effectiveness
◘ Provide relative advantage
◘ Help to evaluate strategic alternative
BCG Matrix:
◘ Identifies high growth prospect
◘ Cauterizing product according market growth and market share
9. ● Inflexible brand position
● tax structure
● investments in research and
development
●Innovative idea
● Classic and elegant image
● Research advantages
● experienced business units
reduced labor costs
10. ● online shopping
● pop up stores
● global markets
● growing economy
● The promotion of o The promotion of organic products
●diversification customers
●technological problems
● rising cost of raw materials
13. Porter’s Five Competitive Forces
• Threat of new entrants
• Bargaining power of buyers
• Threat of substitute products
• Rivalry among existing competitors
• Bargaining power of suppliers
14. Threat of New Entrants
This force performs in Lancôme with medium efforts as follows:
• Lower price of duty free-products
• Accessing distribution channel for new firms
• Maintaining market share
Bargaining Power of Suppliers
This force acts as a low factor in Lancôme because
this beauty house has many of it’s suppliers in processing products.
15. Bargaining Power of Buyers
Lancôme deals with this force in low term. This term includes:
• Entry barrier
• Identification of it’s brand
• High quality products
Threats of Substitute Products
This force acts highly in Lancôme because of availability of many substitution
products especially in travel retail.
16. Rivalry among Existing Competitors
Increasing number of rivalries in Lancôme is high in some following aspects:
• Cumulative competitors
• Tendency of switching brand of customers
• Offering similar products & services by current rivalries
• Matured firm
17. Corporate strategy
• Lancôme uses related diversification strategy in their beauty industry. Lancôme’s best-sellers
are:
• For skincare: Visionnaire, Génifique, Absolue, Rénergie, Blanc expert, UV Expert;
• For make-up: Hypnôse star, Hypnôse Doll Eyes, Hypnôse, L’Absolu Rouge, Rouge in Love,
Teint Miracle, Teint Idole Ultra 24h;
• For fragrance: La vie est belle, Trésor, Ô, Hypnôse.
Brand strategy
• There are basically two types of brand strategies & this are-
• The high end position in the beauty industry
• Luxurious marketing strategy
18. Recommendation
Match organizational strengths to environmental opportunities
• Innovative technology .
• Research advantages.
Corrects weaknesses for Lancôme:
• paying tax .
• Should invest more in research.
Strategy:
∙They may low up product price little bit low foe average people .
∙They can open official branch in subcontinent region.
19. Conclusion
We expect the developed strategy to be succesful,since it is coherent with the
Lancôme brand and values. At the same time it introduces the customers to the world
of exclusive and uniqueness they will not just travel and shop, but an unforgettable
Lancôme journey.
