L'Oréal Brandstorm is a business and marketing competition since 1992. The challenge of the edition 2015 was to put yourself in the shoes of an international marketing director for Travel Retail and imagine a new retail experience for the brand Lancôme to attract new customers. This presentation was presented at the National Final in Milan, Italy, on April 14, 2015.

1. L’Oréal Brandstorm 2015 – National Final Italy
L‘Oréal Brandstorm 2015
Travel Retail
April 14th, 2015
PATRICK BARTL | SYLWIA KURKOWSKA

2. L’Oréal Brandstorm 2015 – National Final Italy
L‘Oréal Brandstorm 2015 – The Challenge
Put yourself in the shoes of
an international marketing
director for Travel Retail
and imagine a new retail
experience for the brand
LANCÔME to attract new
customers!

3. L’Oréal Brandstorm 2015 – National Final Italy
What is travel retail?
 Travel retail is the business undertaken in all the shops located in duty free areas
or any areas dedicated to travelers. With 30% of total sales, beauty - fragrances and
cosmetics - are the best-selling products in this channel.
 Travel retail consumers are global shoppers who buy not only where they live but
also whilst travelling. It is key to offer them a personalized approach with tailored
experiences, beauty consultants who speak their language, targeted product choices
and even point-of-sale events celebrating their holidays or important events.
 1.087 billion people travelled internationally in 2013, equivalent to approximately
15% of the global population. These tourists contributed an estimated $1,159
billion to various local economies, purchasing accommodation, food and drink,
local transport, entertainment and shopping in destination countries.
Source: L‘Oréal, UNWTO

4. L’Oréal Brandstorm 2015 – National Final Italy
Agenda
1) Highlights of the Market Analysis
2) LANCÔME Digital Marketing Strategy Proposal
3) LANCÔME Retail Experience Proposal
4) Executive Summary

5. L’Oréal Brandstorm 2015 – National Final Italy
HIGHLIGHTS
Market Analysis

6. L’Oréal Brandstorm 2015 – National Final Italy
Offers Experiences Personalization
Recommendations
Promotions CustomizationDiscounts
X-SellsLoyalty benefits
Community
Advocacy rewards
EmailCampaignsSEMSEO
Microsites
AWARENESS
CONVERSION
RETENTION/LOYALTY
CONSIDERATION
Customer-centricity is the key to success when deciding on
channels and marketing activities throughout the loyalty loop
Mobile
Phone
Website
P.O.S.
In store
appliance
Radio
TVPrint
At home
At work
At an
event
At a
destination
In a store
In transit
Source: IDC Retail Insights 2015
Know the customer…
…at any time or place…
…on any device or
channel…
…to know what to do
next…
…across the full
consumer lifecycle.

7. L’Oréal Brandstorm 2015 – National Final Italy
Therefore, we introduce a persona: Linda Voyage
32
years
French /
Brazilian
Engaged
No
children
(yet) Owns a
lifestyle
business
Fashion Traveling
Hobbies
Women
with heart
and mind
Confident
Takes
care of
herself
Social
Buyer

8. L’Oréal Brandstorm 2015 – National Final Italy
Linda is a good example for LANCÔME‘s target group
Men
Mature
Women
With
time
Without
time
Airports
57%
Airlines
6%
Downtown
Duty Free
33%
Cruises
4%
>$1.5b
annual
spending
Premium price
Medium price
Low price
Global
Market
"I want to buy a
gift, pass the
time and treat
myself.">6b flights
in 2013
4% annual
growth
~30% travel retail sales in beauty segment
Source: UN World Tourism Organization

9. L’Oréal Brandstorm 2015 – National Final Italy
The travel retail market is expected to double by 2020
0
20
40
60
80
100
120
1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020
2013
~2x
Source: Generation
Billion $ US

10. L’Oréal Brandstorm 2015 – National Final Italy
A global business requires dealing with different cultures.
Let us compare consumers from France and the U.S.
Contextual
Background
P-Time vs.
M-Time
Hofstede’s National Culture Ethno-
centricity
Low-Context
High-Context
Monochronic
Polychronic
Collective
Individual
U.S.France
Individualism/
Collectivism
Low
High
Power
Distance
Feminine
Masculine
Masculinity/
Femininity
Low
High
Uncertainty
Avoidance
Short-term
Long-term
Long Term
Orientation
Low
High

11. L’Oréal Brandstorm 2015 – National Final Italy
Current market trends require a big shift
Democratization of Traveling
Emerging middle class in the New Markets
FROM A PRODUCT-DRIVEN TO AN
EXPERIENCE-DRIVEN LUXURY
Personalization
"Tailor made experience"
Recommendation
"Social Buying"
Glocalization
Customized service by nationality
Digitalization
Internet of Things (IoT) and Gamification

12. L’Oréal Brandstorm 2015 – National Final Italy
LANCÔME needs to leverage market opportunitiesInternalFactorsExternalFactors
 Strong branding
 Market leadership
 High quality
 R&D
 Innovation
 Inflexible brand
image
 Lack of natural /
organic products
 Emerging
middle class
 Increased on-
board sales
 E-Commerce
 Strong competition
 Airports are at or
near maximum
capacity
S W
O T

13. L’Oréal Brandstorm 2015 – National Final Italy
LANCÔME – Mission
LANCÔME is THE brand of women. Today more than ever, ultra-femininity,
emotion, joie-de-vivre, happiness and beauty are at the very heart of LANCÔME’s
DNA. A spirit that asserts itself through the most beautiful, the most optimistic
mission:
That all women who come to
Lancôme to be more beautiful,
always leave happier.

14. L’Oréal Brandstorm 2015 – National Final Italy
In terms of the travel retail market, we translate this into…
Make traveling
more enjoyable
and less stressful,
for a perfect
beauty on-the-go.

15. L’Oréal Brandstorm 2015 – National Final Italy
Digital Marketing
Strategy Proposal

16. L’Oréal Brandstorm 2015 – National Final Italy
Digitalization is a fantastic opportunity for beauty
Source: Google Inside 2014, Facebook Audience Jan 2015, e-Marketer 2014
L’ORÉAL wants to be the leader of “digital beauty”
4.5b
59.2b
160m
Beauty queries
per year on Google
views on Beauty
per year on YouTube
addressable beauty addicts
on Facebook
15.7% of media spending on Digital
LANCÔME average basket is 95€

17. L’Oréal Brandstorm 2015 – National Final Italy
We propose to create Shazam-enabled video adverts
to position LANCÔME as the leading travel retail brand
Linda just returned from a business trip and is
watching TV. She discovers the new LANCÔME
Shazam-enabled advert and activates the Shazam
app on her smartphone to get more information.

18. L’Oréal Brandstorm 2015 – National Final Italy
The Shazam-enabled video adverts link different channels
and promote the LANCÔME Elite Rewards loyalty program
Shazam recognizes the music in the new
LANCÔME advert and shows Linda a link
to the LANCÔME Elite Rewards loyalty
program. Linda can now download the app.
LANCÔME rolled out its Elite Rewards
loyalty program on April 1, 2014 in the U.S.
The monthly traffic increased by 60%.
Source: L‘Oréal

19. L’Oréal Brandstorm 2015 – National Final Italy
We propose to roll out the LANCÔME Elite Rewards
Program globally and enhance it with the following features
Mobile App
Travel Maps
Leaderboards
(1) Overall (2) Friends
Social Buying
(Wish List)
Geolocation with
iBeacon

20. L’Oréal Brandstorm 2015 – National Final Italy
Sharing content of LANCÔME on social networks
will be rewarded with loyalty points
Source: Self-adapted advertisement from Munich Airport, Music: Tresor

21. L’Oréal Brandstorm 2015 – National Final Italy
At the airport, LANCÔME has the chance to convert
Linda and retain her for the future
The loyalty program helps
LANCÔME to build
awareness and lets Linda
consider buying the
products that make
traveling more enjoyable
and less stressful.

22. L’Oréal Brandstorm 2015 – National Final Italy
LANCÔME banners could be placed at strategic
locations at the airport to promote the loyalty program
The usage of gamification
techniques is recommended
to address the core drives
for consumer motivation

23. L’Oréal Brandstorm 2015 – National Final Italy
After the security check, Linda receives a push notification
from the LANCÔME app triggered by iBeacons in the store

24. L’Oréal Brandstorm 2015 – National Final Italy
She is curious to explore her special offer and is lead
to the LANCÔME store nearby through the app

25. L’Oréal Brandstorm 2015 – National Final Italy
iBeacons are supported by iOS
devices with Bluetooth 4.0,
Android 4.3+ devices as well as
Windows Phones with the
Lumia Cyan update or above.
The technology enables smartphones or other devices to
perform actions when in close proximity to an iBeacon
Source: http://techblog.rga.com/ibeacon-primer-part-ii-ibeacon-vs-geofencing/
iBeacons emit just three identifying pieces of
information in their Bluetooth Low Energy
(BTLE) payload, a universally unique
identifier, a major value, and a minor value.
This helps to identify e.g. the store, the floor
within the store, and the position on that floor.
The store can then serve unique content to the
user based on their actual position, for
instance a special offer on the Lancôme
perfume the customer is standing in front of.

26. L’Oréal Brandstorm 2015 – National Final Italy
Retail Experience
Proposal

27. L’Oréal Brandstorm 2015 – National Final Italy
Digitally enabled touch points
throughout the shopping journey
Thanks to iBeacons, the beauty advisor receives Linda‘s
special promotions and history before she enters the store

28. L’Oréal Brandstorm 2015 – National Final Italy
When Linda enters the store, she
notices a purple carpet leading to
the LANCÔME MAGIC
SCREEN that displays what is
happening at that moment in
other LANCÔME airport stores
worldwide. Language barriers can
be eliminated by connecting to the
right store in the world.
The LANCÔME MAGIC SCREEN connects
two stores and creates a unique customer experience

29. L’Oréal Brandstorm 2015 – National Final Italy
Products with a QR code
can be placed on the table
and trigger the display of
further information
The Multitouch LANCÔME Experience Table & Digital
Mirror inform about products and apply them virtually

30. L’Oréal Brandstorm 2015 – National Final Italy
Linda creates a digital postcard to share her new look.
She receives immediate feedback from friends and family
It’s wonderful, I fully
trust my family and
friends and love to
share my new look!

31. L’Oréal Brandstorm 2015 – National Final Italy
Executive Summary

32. L’Oréal Brandstorm 2015 – National Final Italy
Enhanced global LANCÔME Elite Rewards program
Mobile app, iBeacon, Travel maps, Leaderboards
Executive Summary: Omni-channel Strategy
Make Traveling More Enjoyable and Less Stressful
Awareness Consideration Conversion Retention
Shazam-enabled video
advert
Google SEM
Social Buying "Greetings from LANCÔME"
Your picture on a plane (Elite rewards)
Personalized product packaging (gifting)
Airport Banners
Email campaign / Newsletters
Magic Screen, Multi-touch LANCÔME Experience table
Customer history when entering the shop
Travel samples on board for the first & business class
On board advertisement in magazines
Camouflage Airport Events
Delivery at the gate of
destionation airport
Digital Channels Classical Channels
Facebook Ads
Ready-to-go travel sets

33. L’Oréal Brandstorm 2015 – National Final Italy
Patrick Bartl
Managing Consultant
M.Sc. in International Management
Email: patrick.bartl@outlook.com
LinkedIn: www.linkedin.com/in/patrickbartl
Contact
Sylwia Kurkowska
Graduate Student
M.Sc. in International Management
Email: sylwia.kurkowska@studio.unibo.it
LinkedIn: www.linkedin.com/in/sylwiakurkowska