Direct and Interactive Marketing Management

Coursework: Recommendations Report

Word Count: 3,500 words

Executive Summary

LOreal Skin Care Revitalift

LOreal is one of the biggest companies in the beauty industry. It was founded in 1909
and soon it became a worldwide famous company which now comprises such wellknown brands as Garnier, Kielhs, Redken, Lancme.
This report describes the direct marketing campaign for the anti-aging skin care
collection Reviatlift proposed by DIMax agency.
In order to promote Revitalift collection, direct marketing campaign strategy will
comprise two tactics: acquisition aimed at gaining new customers and their retention.
Direct mail, direct response advertising, which comprises billboards throughout the
UK and four magazines which are most popular among the target audience, enewsletters will be used for acquiring new customers through five step approach.
Loyalty scheme and Regular customer updates (through website and Facebook page)
will be used as part of retention tactic.
According to the estimations made by DIMax agency this direct marketing campaign
will generate 6,283,000 of revenue and the ROI will constitute 1:5.3.

Table of Content

Executive Summary.......................................................................................................2
Table of Content.............................................................................................................3
1.

Direct Marketing Strategy......................................................................................4

1.1 Objectives.............................................................................................................4
1.2 Overall Strategic Approach..................................................................................5
1.3 Segmentation and Targeting.................................................................................5
1.4. Positioning Statement..........................................................................................5
1.5 Positioning Matrix................................................................................................6

2.

Campaign...............................................................................................................7
2.1Creative Brief........................................................................................................7
2.2 Tactics..................................................................................................................8
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LOreal Skin Care Revitalift

Media Used............................................................................................................8
3.

Acquisition Programme Flowchart......................................................................13

Acquisition Objective...............................................................................................13

4.

Acquisition Programme Schedule........................................................................14

5.

Retention Programme Flowchart.........................................................................14

Retention Objective..................................................................................................14

6.

Retention Program Schedule................................................................................18

7.

Measurement........................................................................................................18
Response Rate/Conversion Rate: Measure the Results............................................18

8.

Evaluation............................................................................................................20

9.

Budgets & bottom line forecast results................................................................20

Estimated Revenue...................................................................................................21
Estimated Profit and ROI.........................................................................................21

Conclusion....................................................................................................................22
Bibliography.................................................................................................................23

1. Direct Marketing Strategy

LOreal Revitalift Line

1.1 Objectives
Our objectives are not just to keep current customers but also to recruit new ones.
According to Mintel report, it can be seen that main reasons for purchasing an antiageing products for women are good quality of products, as well as good advertising
and customers feedback (Mintel, 2012). Hence, our direct marketing campaign will
focus on communicating the message about the exclusivity and uniqueness of using
Revitalift product.

LOreal Revitalift is now on the initial stage of its product life cycle.

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LOreal Skin Care Revitalift

Figure: 1 Product Life Cycle.

Source: Mintel
At this point the fundamental marketing communication objective for LOreal
Revitalift is as follows:
To create widespread awareness for at least 30% in the next 12-week
period by generating interest and desire among the target audience.
This central aim drives three main objectives of the direct marketing campaign:
Create database of new/potential customers of 1.1 million people across UK
that can be used to activate the direct marketing campaign.
Attract 150,000 new customers to activate and drive people to store
Drive 6,283,000 of turnover through the development of these campaigns

1.2 Overall Strategic Approach

The marketing strategy of our campaign has two tactics acquisition and retention.
1.0 Acquisition tactic is aimed at gaining new customers using direct mail, enewsletters, direct response advertising (OOH, magazines,).
2.0 Retention tactic employs loyalty schemes and customer updates via e-newsletters
and social media.
By combining these two tactics LOreal Revitalift Line will be able to gain bigger
market share in the UK.
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LOreal Skin Care Revitalift

1.3 Segmentation and Targeting

The target group for LOreal Revitalift includes females aged from 45 years old and
above, belonging to social classes B, C1, C2. According to the UK National Statistics
data, this particular group composes large number in the UK population today.

1.4. Positioning Statement

For modern energetic ambitious women who want to look good and attractive at all
times. LOreal Revitalift is the number one multi-action innovative collection of
products which help to slow down the process of aging. Unlike other skin care
programmes, Revitalift targets 10 signs of ageing in one which makes it the most
effective anti-aging cosmetic product.

1.5 Positioning Matrix

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LOreal Skin Care Revitalift

Figure 2: The Brand Positioning: LOreal Revitalift anti-ageing Line versus competitors.
Source: own work

According to the graph above LOreal Revitalift is perceived as a high quality

collection with reasonable prices compared to other anti-aging products in the same
market. Olay has a slightly lower price but it has worse standard, whereas such
premium quality lines as Clarins, Lancome and Estee Lauder are much more
expencive. It gives LOreal a product advantage over its competitors.

2. Campaign
2.1Creative Brief
Brand

L'Oral Group

Product

Skin Care Revitalift

Brand Essence

Caring, rejuvenating and renovating

Target

Social classes: B, C1, C2

Age groups: 45-54, 55-64, 65+
Gender: Female
Existing Customer: current users of LOreal
New Target Market: women who care about their
appearance and who need high-quality skin care collection
for affordable prices

USP

Innovative anti-aging formulae that targets 10 signs of

ageing

What do we want the

campaign to achieve?

Acquisition: to gain 150,000 new customers registered

during the campaign
Retention:

Retain current customers

Retain acquired customers and win their loyalty

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LOreal Skin Care Revitalift

How do we want the
target to feel about the
product after the
campaign?

It is necessary to create the image for Revitalift

products as innovative and being able to slow down
aging, thus, making Revitalift an alternative to plastic
surgery.
Revitalift collection should become First in Mind
variant when it comes to decision making process.
Women should be informed that being more affordable
Revitalift collection is of as high quality as more
expensive competing products.
Message Points/Reason Revitalift collection consists of 16 products for different
Why
types of skin which

repair deep-set wrinkles

have double lifting effect

prevent new wrinkles

nourishe skin

Mandatories

L'Oral slogan Because were worth it

Media Outline

Timing

Women magazines
E-newsletters
OOH
Social media
Direct mail
September 2013 August 2014

Budget

2,000,000

Table 1: Creative Brief.

Source: own work

2.2 Tactics
The marketing strategy of the campaign will include both acquisition and retention
tactics aiming to gain new customers and keep existing ones. The main message
which must be conveyed throughout the campaign is that innovative Revitalift
collection may serve as an alternative to plastic surgery.
Media Used
Direct Mail
Direct mail will be sent out using rented list, which will enable to communicate with
the right target group. It is expected to get 960 responses out of 19,200 mails sent.
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LOreal Skin Care Revitalift

Newsletters informing about Revitalift promotions in different retailer stores and also
samples of products will be sent through mail system once in 2 weeks.

Pic. 1: Direct Mail newsletter and sample of Revitalift cream

E-newsletter
Using rented list for new customers newsletters will be e-mailed weekly. They will
inform about web-site updates, new articles and videos uploaded there and also give a
couple of beauty advices for women aged over 45. This campaign aims to get 10
responses out of 5,000 e-mails sent.
Out of Home
Outdoor media works effectively due to the fact that a customer comes across the
same message frequently. In order to reach wider audience 1,500 Revitalift billboards
will be placed in London and other big cities of the UK: Manchester, Leeds,
Birmingham, Sheffield and Edinburg. The campaign will last for one month.

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LOreal Skin Care Revitalift

Pic. 2: Outdoor advertising

At the bottom of every billboard LOreal web-site address will be given in bold. The
nearby message will invite customers to visit the web-site and register there.
Magazines
Since press is the medium which enables very precise targeting, three magazines
which are most popular among women aged over 45 belonging to B, C1 and C2 social
classes have been chosen for direct response advertising campaign. These are monthly
glossy magazines Women & Home, Sunday Time Style and Good Housekeeping,
Tatler.
Revitalift collection will be advertised in these magazines. The URL of LOreal
relaunched web-site will be placed in the noticeable place. Underneath there will be a
message inviting customers to register on the web-site and join LOreal loyalty
programme.
Additionally vouchers/flyers with a special reference number will be attached to
magazines. It will enable customers to get a discount when buying a Revitalift
product. The only thing which will be necessary here is to register reference
number/bar code on the LOreal web-site. It will also help to encourage more people
to visit the web-site.
The following magazines were chosen to promote LOreal Revitalift brand due to the
following reasons:

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LOreal Skin Care Revitalift

They reflect target audience lifestyle

High coverage among the target audience
High circulation figures in the UK

High recognition among the fashion conscious consumers

Pic. 3: Magazines
Title

UK & EU

Readership

Cost per page

Target

Circulation

(000)

()

audience

Good House
keeping

182,146

762

19,000

Tatler

85,084

204

10,700

profile
Styleconscious
opinion
formers with a
medium
disposable
income and a
passion for
home
decoration,
travelling,
beauty
Up market,
affluent
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LOreal Skin Care Revitalift

Woman &
Home

165,575

463

23,900

The Sunday
Time Style

85,655

520

10,500

individuals
who have
lavish lifestyle.
Average house
hold income:
122 746
Concentrated
in the B, C1,
C2 35-65
demographic
group
Smart,
sophisticated
and intelligent
women
(B,C1,C2)
image
conscious
women aged
45+.

Table: 2 Total Readerships.

Source: Mediatel, 2012.
Adverts will be published in four issues of each magazine on the second step of the
campaign (sending out the message) and in four issues on the fourth step (resending
the message).
Social Media
Facebook fun page will be created in order to announce special offers, new products,
and events. Additionally, customers will also be able to share their photos,
information and give advises.
Website and Online Shop
It has been decided to re-launch LOreals website, as it has several drawbacks: its
not informative enough; the design is too simple and not attractive; colors of the
website are dark and give negative impression; lack of consumer engagement.
The new website will be designed in bright, warm colors and will have an easyunderstandable navigation. It will have new features such as advices from experts,
different articles about health and beauty, consumer reviews, price comparison. Every
product will have detailed description. The website will be updated every 2 days. The
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LOreal Skin Care Revitalift

most important change will be in dividing it into different age categories enabling
customers to go straight to their age category and to choose products that suits their
age. Additionally, each category will have articles and advices about beauty. Revitalift
line will be in 45+ category section and will have its own mini videos on how to
prolong the youth of the skin and live chats with LOreals experts where women in
real time could ask them their questions. The only thing which will be necessary for
the customer to get an access to all these useful resources will be register on the website which will enable LOreal to collect customer data.
In addition, there will be created an ecommerce platform (on-line shop) that will be
rolled into LOreals main website. By selling products directly (without a retailor
store as a mediator) LOreal will get an opportunity to establish closer relationship
with its customers.
Relaunched web-site and on-line shop will provide the customer with expert advices,
detailed information and useful videos which will help to win customers trust and
loyalty.

Pic. 4: Web-site page

Source: own work

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LOreal Skin Care Revitalift

3. Acquisition Programme Flowchart

Acquisition Objective

To achieve 150,000 people registered on the website and thereafter to

purchase products from online shop and in-store

To generate 6,283,000 revenue

Step 1: Hot List

Lifestyle List
(New Customers)

Acquisition

Out of Home

Step 2: Sending out the

first message

Direct Response
Advertising

Magazine ads
Online Media

Facebook

Direct Mail
Step 3: Measurement
Step 4: Resent the
message to stimulate
action

Direct Response
Advertising

www.L'Oreal.c
o.uk

Magazine ad

www.L'Oreal.c
o.uk

Online Media

Facebook

Direct Mail

Step 5: Measurement

Figure: 4 Acquisition programme flowchart.

Source: own work

To make the campaign effective as much as possible it must have a multi-step

approach.

Step 1: Hot list

The hot list of 150,000 names will be rented.

Step 2: Sending out the message
The aim is to promote LOreal through direct mail, direct response advertising, social
media and e-newsletters.
Step 3: Measurement
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LOreal Skin Care Revitalift

After the first message is sent we will measure the number of new customers.
Step 4: Resend the message to stimulate action
The same means as on the second step will be used (via direct mail, direct response
advertising, e-newsletters) for those who for some reason missed or ignored the first
message.
Step 5: Measurement
The effectiveness of this direct marketing programme will be measured by the number
of newly registered customers and the number of purchases made.

4. Acquisition Programme Schedule

Table 3: Acquisition Program Schedule

Source: own work

5. Retention Programme Flowchart

Retention Objective

To retain new customers

To generate 6,283,000 revenue

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LOreal Skin Care Revitalift

Membership card - L'Oreal with L'Ove

Campaign 1:
Loyalty Card

Collecting Point

100 points get 10 pounds gift

voucher
1,000 points get special
treatment

Retention
Retention

Revitaeift Tea Party

Special offer

Surprise gifts - Free dilivery

Get double point when
purchaseing on your birday

Campaign 2:
Customers updated

www.loreal.co.uk
Online Media
Facebook

Figure: 5 Retention program and Campaign Flowchart

Source: own work
Campaign 1: Loyalty Scheme
By creating unique loyalty scheme, it will help to increase satisfaction level
of customers, as well as improve relationship with them. It can also help to get
vlubl insights into bur bhaviur and to collect customer data. LOreal
loyalty card, which will be called LOreal with LOve, will give a sense of
privilege to its members.
1. By becoming a member of LOreal with LOve, customers will
receive 2 plastic membership cards with the starting amount of
10 points on both of them. The member retains one and has an
option of giving second card to friend.
2. With every purchase customers will get certain number of points
1 pound = 1point; 100 points =10 pounds gift voucher
to spend on the next purchase or 10% discount of the
next purchase.
3. There will also be special gifts and surprises for LOreal with
LOve members, such as gifts for Christmas and Mothers day.
4. Revitalift Tea Party
LOreal with LOve will create a special event for the most loyal 45+
members. It will be an informal gathering in the format of tea party.
In this event women can socialize, share their experience with LOreal,

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LOreal Skin Care Revitalift

give their opinion on products, telling what they want to get in the
future from LOreal, particularly in the category 45+.
5. Another great opportunity for members to receive an exceptional benefit is to
collect 1,000 points and to get a special treatment in one of LOreals salons in
London. It can be a makeup session, a blow dry, or a manicure/pedicure.
6.
6.
6.
6.
6.
6.
6.
6.
6.
On their Birthdays customers will get double points for their purchases.

Pic. 5: The example of the loyalty card of LOreal with LOve.

Source: own work
Campaign 2: Customer Update
Keeping customers updated is very important.
New products and special promotions will be announced through LOreal website and
Facebook. Every registered customer will get link onto web-site/Facebook update by
e-mail.

Pic. 6: The example of online media: LOreal Facebook.

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LOreal Skin Care Revitalift

Source: own work

6.
Retention
Program

Schedule

Table 4: Retention Programme Schedule

Source: own work
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LOreal Skin Care Revitalift

7. Measurement
Response Rate/Conversion Rate: Measure the Results
Type of Media

Number
of
contacts

Response
Rate (%)

Conversion
Rate

Cost per
each media
channel ()

Expected
Spending
per
transaction

E
R

()
Social Network

Facebook

47,536

0.2

1 in 8

237,680

20

2,687

20

Out of home

Billboards

13,436

1 in 6
Magazines

Woman and Home

5,920

1 in 4

1,973

20

Sunday Times
Style
Good
Housekeeping
Tatler

17,700

1 in 4

5,900

20

8,528

1 in 4

2,843

20

27,680

1 in 4

9,227

20

Direct Mail

19,200

1 in 6

3,840

20

-Newsletter

5,000

0.2

1 in 6

25,000

20

Company Website

5,000

0.2

1 in 6

25,000

20

TOTAL

150,000

314,150

Table 5: Shows the results of response rate and conversion rates for the campaign.
Source: own work

Out of Home
Outdoor campaign (billboards) will be measured by eyes on Impression system
(EOIs), where results will be gained from different types of data, i.e. survey, blogs,
data analytics and customer reviews.
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LOreal Skin Care Revitalift

-newsletters
To measure response rate in this campaign there will be developed 4 different types
of mails that will be sent to trial group of customers - 600 people in 5 big cities across
the UK (London, Manchester, Birmingham, Leeds, Edinburg). The type of e-mail that
will receive higher response and conversion rates will be sent to the rest of the target
audience.
Print Advertising
The response rate to the campaign will be measured by inserting voucher/flyer with
bar code/reference number on each of them. Hence, if a customer wants to get a
discount when buying a Revitalift product she will need to register this number
online. That is how the exact number of customers will be measured.
Social Media/ Online
Social media will be tracked by the number of fans, likes, comments.

Facebook: number of likes of the LOreal Revitalift page.

Website: number of visitors, comments in the blog and
customers feedbacks.

8. Evaluation
Evaluation process will be in the end of the campaign. The final campaign results will
be evaluated and compared with initial objectives.
Type of Media

Initial target (Responses)

Forecast results
(Responses)

-newsletter

300,000 members

3,800,000

Facebook

50,000 fans

120,000

Magazines -Print

8,000 promotion users

10,000

Out of Home

1,000,000 positive
responses

1,000,000

Total Responses

1,358,000

4,930,000

Table 9: Evaluation of the Campaign

Source: own work
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LOreal Skin Care Revitalift

9. Budgets & bottom line forecast results

Direct
Marketing
Tools

Description

Size

Frequency

Price
()

Out of Home
Billboard

1,500 in London,
Manchester, Leeds,
Birmingham, Sheffield
and Edinburg

6 Sheet

1 month

387,500

(3ft x 6ft)

Magazines
Woman &
Home

Full Colour

Full Page

4 issues

76,500

Good
Housekeeping

Full Colour

Full Page

4 issues

83,584

The Sunday
Times Style

Full Colour

Full Page

4 issues

161,700

Tatler

Full Color

Full page

4 issues

350,000

300,000
mails

30,000

Direct Mail (unit cost 0.1 p)

Direct Mail Production
E-newsletter (unit cost 0.1 p)

11,000
500,000

50,000

e-mails
Company

Expansion of company web-site

10,000

Web-site

Maintenance fee

7,000

Facebook

Monthly admin (unit cost 200)

TOTAL

1,000
1,168,284

Table 8: Budget and bottom line forecast results

Source: own work

Estimated Revenue
All sorts of media used in the direct marketing campaign for Revitalift will cost
314,150. Both acquisition and retention parts of the campaign will produce
6,283,000 of revenue.
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LOreal Skin Care Revitalift

Estimated Profit and ROI

According to the estimations of the expenditure and revenue of the campaign,
5,968,850 of profit will be generated.
Relying on all these calculations the campaigns return on investment has been
estimated. It shows how much the company will get in return for the investment it
made. It will allow the company to decide whether it worth to invest in the campaign
or not.
The ROI from the direct marketing campaign for LOreal Revitalift will be 1:5.3.

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LOreal Skin Care Revitalift

Conclusion
The value of the UK beauty industry is over 15bn. Unlike many other industries it
was not heavily affected by the economic crisis because of womens obsession with
keeping their beauty.
Revitalift is a new skin care collection for women aged over 45. Now it is on the
introductory stage of its life cycle, therefore it needs to be widely promoted. In order
to get higher results and implement more precise targeting a number of direct
marketing techniques must be employed.
For customer acquisition direct mail, e-newsletters, direct response advertising and ecommerce will be used. These tools will enable to attract new customers. For the
purpose of retaining customers loyalty scheme, which will have several levels, will be
worked out. Members of the LOreal with LOve loyalty scheme will not only get
different prizes and discounts but will also get an opportunity to participate in LOreal
special events for those who use Revitalift.
This direct marketing campaign is estimated to generate 6,283,000 of revenue which
makes it a good investment for LOreal.

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