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IMC

REPORT

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2016

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Rebekah Durkin
Alexis Ariana Melchor

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Nina Van Munnen

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Sophie Thompson

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Contents Executive Summary / 03
Introduction / 04
2. SITUATIONAL ANALYSIS / 05

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2.1 Market Overview / 05
2.1.1 Market Analysis/ 05
2.1.2 Buyer Behaviour / 06

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2.2 EXTERNAL ENVIRONMENT
ANALYSIS / 07

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2.2.1 Macro Environment /07

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2.2.2 Economic Trends /07
2.2.3 Socio Cultural Trends /07
2.2.4 Technology Trends /08
2.2.5 Environmental Trends

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2.2.7 Legal Trends
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2.3 THE OPERATING ENVIRONMENT
2.3.1 Competitor Analysis / 09
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2.3.2 Consumer Analysis / 11


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3 MARKETING COMMUNICATIONS
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PLAN / 13
3.1 Target Market /13
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3.2 The Creative Idea / 16


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3.3 Justification /17


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4. COMMUNICATION OBJECTIVES / 19
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4.1 Marketing Communications Strategy / 20


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5. CREATIVE STRATEGY / 21

6. MEDIA STRATEGY / 26
6.1 Media Schedule and Budget / 31- 32

7. CONCLUSION / 33
8. APPENDICES / 34
9. REFERENCES
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Executive Summary

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An Integrated Marketing Communication's report was requested by the client
L'Oreal Paris to aid in boosting their hair care category in the ASEAN region. The

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main objective of the report was to provide an in-depth analysis of the target
market thus leading to the creation of a new product that would be marketed to
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the target market via media channels using creative strategies. Through
researching the hair care market in the ASEAN region, it was evident that each
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country although many close in proximity had differing hair care markets as well
as demographics and sociocultural trends. Therefore, after analysing each country
the Philippines was chosen as the primary country to target. Further insights into
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the Philippine's suggested that L'Oreal had the lowest market share, therefore, the
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opportunity to boost the market share was evident. In terms of target market, it
was evident that segmenting the market of 15-35-year-olds was crucial as the
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target market consisted of differing consumer needs. Therefore, the target market
"The Go Getters" aged 26-30 years old and Urbanised areas of the Philippines was
chosen to for the campaign to focus on first. By gaining these insights, the
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innovation of the new diffusion line For You was established featuring 5 product's
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aimed at consumer needs. As a result, marketing strategies such as traditional,


online social media advertising and a new hair care app were implemented to
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promote the product and reach the target market. To further boost the hair care
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category, recommendations such as the development of the app to feature a hair


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scanner for assessing hair and analysing the success of the campaign in the
Philippines so to be used in other ASEAN countries were suggested for L'Oreal
Paris to consider for continual long term success in the ASEAN region.
INTRODUCTION

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L'Oreal Paris is a global, legendary brand who began its company with hair care

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products such as Elnett Lacquer, Recital, and Preference Hair colour Products. L'Oreal
Paris is rated the number one international beauty brand in their competitive industry,
offering more than 50 products and continually launching new and innovative products

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each year and are seeking to boost their hair care category in the ASEAN Region

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The ASEAN Region consists of Indonesia, Malaysia, the Philippines, Singapore,
Thailand, Vietnam, Brunei, Burma, Cambodia, and Laos as well as India.

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To help boost their Hair Care in the ASEAN Region , L'Oreal Paris are seeking to create
a new product range to market to their demographic of 15-35-year-olds
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L'Oreal Paris will look at current competitors in the ASEAN Region, competitor
offerings, and consumer demographics such as geographic and sociocultural trends to
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help influence their new product and Integrated Marketing Communication's Campaign.
By using found insights this will help ensure their Integrated Marketing
Communication's Campaign will effectively and successfully reach their target market.
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2. SITUATIONAL ANALYSIS
2.1 MARKET OVERVIEW

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2.1.1 Market Analysis

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The current market that L’Oréal operates in is the hair care market. This market is highly
competitive with a large amount of brands providing a variety of different hair care

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products catering for different hair problems and needs. Within this market, there are

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premium products that offer a more extensive range, as well as a mid to lower product
range which caters to more basic needs and is available at a lower price. In relation to
trends within the industry, there is a rise in exotic scents, extensive products ranges, and
salon quality products at an affordable price.
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Moreover, there is a rising trend in consumer’s leading busier lives, with higher demand
for their occupations, causing them to want more convenient and easily accessible products
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for their hair care routine. As a result, these haircare companies are expected to cater to
their consumer’s needs and wants by creating a wider range of products in a convenient
form. At the current time, the hair care market is focusing on selling relatively high-
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quality products at a mildly affordable price. The majority of the market is catering to
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very similar haircare needs, providing basic products to meet those requirements.

As of 2013 (MarketLine, 2014) in Philippine's shampoo dominates with 64% of the


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market and followed by conditioner at 22%. However, statistics show that in the
Philippines L'Oreal has one of the lowest market shares at 7.9% (MarketLine, 2014) with
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other competitors dominating the industry. In terms of market distribution in the


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Philippine's independent retailers have the largest share of 38.8%.


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Evidently, looking at the competitive industry especially within the Philippine's, it is


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evident that L'Oreal Paris has an opportunity to gain a larger market share by offering
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products that are yet to be seen in the market.


2.1.2 Buyer Behaviour

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By understanding the behaviour and stages an individual will go through when making a
product choice for hair care this will allow L'Oreal to understand consumer reactions and

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insights when considering hair care products

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Stage 1: Need Recognition
During the Need Recognition stage, the consumer's establishes a need or problem thus leading
them to recognise the desire to satisfy that need. Therefore in terms of hair care products,

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consumer's may have various need recognitions such as the need to have strong hair, straight
hair or anti-dandruff hair among other needs.
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Stage 2:Information Search
During this stage, the consumer has established their hair need and will initiate an internal
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memory search of experiences with hair care. Likewise an external search of friends, family and
online sources. Additionally, an evoked set will be established and may include:
• Cheapest options from supermarket
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• What’s available at local markets


• What friends and family use
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• What they hair care products and brands they are currently loyal to

Stage 3: Evaluation of Alternatives


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Once the consumer has gathered information, an evaluation of the key attributes required is
performed. This step becomes more detailed the more involved the level of purchase
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becomes. Within the haircare category, this can be low involvement if choosing a product
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familiar to the consumer, or can be high involvement when researching new products and their
attributes.
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Stage 4: Purchase
Once an evaluation has been made the consumer will purchase their selected hair care. This
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process is extremely straightforward and easy once the customer is aware of what they want.
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Stage 5: Post-Purchase
At this stage, the consumer will evaluate their purchase against expectations made. If successful
the consumer may decide to maintain loyalty to a hair-care product and brand. However, if
expectations are not met post-purchase dissonance may occur
2. 2 EXTERNAL ENVIRONMENT ANALYSIS

2. 2. 1 Macro Environment
The external environment of L’Oreal Hair Care will be discussed to

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identify possible opportunities and threats that may impact their brand in
the Philippines and the use of their products by consumers

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2. 2. 2 Economic Trends

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The current factors that drive and will impact L’Oreal:

• As of 2011 40% of the population fall underneath the poverty line (GTC, 2011)

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• The main sectors that contribute to Philippines economic growth include agriculture and
industry
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• 14 % of the agriculture contribute to Philippines GDP, with the over a third of the population
being employed by the agriculture sector (GTC, 2011)
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• As of 2014, Philippines GDP is $285B with Philippines GDP per capita being $2,872.51 which
compared to the rest of the world is 56% lower than the world average (Country facts, 2016)
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• Thus as Philippines has a lower per capita GDP this relates to the lower quality of life of the
population which relates to the 40% of the population living in poverty
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2. 2. 3 Sociocultural Trends
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• As of 2014, the population of the Philippines reached 91.4 million people


• According to (Every culture, 2014) the colour of skin, beauty and money are used as a criterion to
establish a person’s social status
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• The main religion practiced in the Philippines is Catholicism (82.9%), Muslim (5%), Evangelical
(2.8%), Iglesia ni Kristo (2.3%) and other Christian making up 4.5% as of a 2000 census (Index
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Mundi)

• Is the third-largest English speaking country (GTU, 2011)


2. 2. 4 Technology Trends

• In the Philippines, there is a low technology prevalence in terms of internet use with 39.69% of the
population using the internet

• Has seen a healthy growth in the use of internet and mobile users (MarketLine, 2015)

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• As oppose to the use of internet, 71% of the population of the Philippines own a mobile phone
with 86% join social media platforms one having access to the internet (Open internet, 2016)

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Environmental Trends 2. 2. 5

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• The Philippines is considered one of the world's countries that are disaster prone

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• Environmental devastation has also been the cause of human destruction through loss of
agriculture land, deforestation, soil, air and water pollution, inappropriate discarding of
poisonous waste (Gtu, 2011)

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• The potential economic contribution of mineral, oil, gas and geothermal are significant (The
World Bank, 2016)
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• Increase in Pollution and CO2 emissions (The World Bank, 2016)
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2. 2. 6 Political Trends

• As stated by Country-Facts (2016) in the Philippines the amount of women who hold seats in
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Parliament is 41% higher than the global average

• As discussed by Marketline (2015) the Philippines ranked low in areas such as political
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stability and control of corruption. Likewise, the country has a perception of being high in
corruption due to anti corruption laws being inconsistent
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Legal Trends 2. 2. 7
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Philippines is part of the ASEAN Cosmetic Directive which enforces laws and regulations such as
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(Nottage, 2015)
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• The listing of ingredients due to 1300 substances being banned in the ASEAN region

• The use of the ACD regime that covers consumer protection and safety provisions such as
limitations suppliers have when placing cosmetics in the market, ensuring a safety assessor has
been used due to the Product Information File requirement

• Compliances with the ASEAN cosmetics claim guideline and ASEAN Cosmetic Labeling
Requirements
2. 3 THE OPERATING ENVIRONMENT
2. 3. 1 Competitor Analysis
Direct Competitors

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Dove

Unilever is an Anglo-Dutch multinational consumer

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goods company co-headquartered in the Netherlands
and England. Unilever was founded in 1930 and is

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available in 190 countries.

Unilever holds a 13.5% market share in skin care


and hair care worldwide (MarketLine, 2011) and a
41% value share in the Philippines (Statista, 2010).
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Unilever’s brand value for Dove is $5,821 million
(Statista, 2016).
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Threat
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Herbal Essences
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Procter & Gamble are an American multinational


consumer goods company that was established in
1837.
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In 2014, Procter & Gamble obtained US $83.1


billion in sales across their 65 brands (MarketLine,
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2011).
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Procter & Gamble hold a 20% global market share


(Reuters, 2016) and a 14.3% share in the
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Philippines (MarketLine, 2011).


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Threat
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Palmolive

Colgate & Palmolive is an American multinational


consumer goods company based in New York City.
It was founded in 1806 and is spanned across 200
countries.

Colgate & Palmolive is highly successful throughout

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the Philippines amongst the low and medium
income earners, and accounts for 12.9% of the
market share (MarketLine, 2011).

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Across Asia, 14.6% of Colgate & Palmolive’s
revenue was sourced from Asia and collected a
worldwide revenue of $17.28 Billion U.S in 2015

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(Market Realist, 2015).

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Threat

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TRESemme

Unilever is an Anglo-Dutch multinational consumer


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goods company co-headquartered in the Netherlands


and England. Unilever was founded in 1930 and is
available in 190 countries.
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Unilever holds a 13.5% market share in skin care and


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hair care worldwide (MarketLine, 2011) and a 41%


value share in the Philippines (Statista, 2010).
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Unilever’s brand value for Dove is $5,821 million


(Statista, 2016).
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Threat
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L’Oréal competes in a highly competitive market that is constantly growing and expanding.
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Through extensive research on L’Oréal’s competitors and their offerings, we have discovered that
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Colgate & Palmolive, Unilever and Procter & Gamble share many similarities in relation to the
opportunities and weaknesses of their companies. Each company has the potential to tap into
rural areas and increase penetration within the urban areas. These are major competitors in the
skin and haircare market due to the vast variety of product offerings they have for each brand,
their effective campaign strategies, their ability to create a need within the consumers and find a
gap in the current market and create a strategy to fill it.
2. 3. 2 Consumer Analysis

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Geographic For this report, Philippines will be the main geographical location that
will be targeted, however while the Philippines compromises of either

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urban and rural/ provincial areas and is divided into 3 groups: “Luzon,

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Visayas and Mindanao also known together as Luzviminda” (National
Encyclopedia, 2016). While theses three groups are further subdivided

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into 16 other regions, the main area we will be focusing on is the island
of Luzon which holds the capital city Manila, likewise the island is a

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“highly urbanized region” (National Encyclopedia, 2016) and also
compromises of the following urban areas: Mandaluyong, Marikina,

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Pasig, Quezon, Kalookan, Valenzuela, Las Pinas, Makati, Mantinlupa,
Paranaque and Pasay ( National Encyclopedia, 2016). While only the
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urban areas stated will be targeted, the long-term aim is to infiltrate
rural area, however first it is necessary to gain the wholesome attention
of the ubran area to achieve this.
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The Age groups percentage that makes up the population of the


Age Philippines include:
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0-14 years: 33.7% (male 18,493,668/female 17,753,359)


15-24 years: 19% (male 10,416,358/female 10,044,724)
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25-54 years: 37% (male 20,031,638/female 19,796,545)


55-64 years: 5.8% (male 2,882,719/female 3,372,485)
65 years and over: 4.5% (male 2,103,596/female 2,773,139) (2014 est.)
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(ILO, 2016)
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However for this report we will be focusing on the age group 26-30
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In the Philippines, occupation and workers are divided into thee sectors:
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Job Status Agriculture, Industry and Services. However from these sectors, a
further four more categories have been established these include: wage
and salary workers, self employed workers without any paid employee,
employers in own family operated farm or business and unpaid family
workers (PSA, 2016)
In terms of the largest sector that made up the biggest employment of
Occupation the population workers who worked in the service industry made up
56.3 percent of the total employed population (PSA, 2016) with 33.5%

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of workers from the service industry working in either retail trade or
repair of motor vehicles. The second largest group is the agriculture

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sector which makes up 27 percent of the total employed population and

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laborers and unskilled workers making up 31.7 percent of the
employment population (PSA, 2016)

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Income AL
According to the Philippines statistics authority, in 2012 the annual
income of Filipino families was 235 thousand pesos (PSA, 2016) with
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their average spending 193 thousand pesos annually.
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As stated by PWC (2016) as of 2007, 45.3 percent of the population of


Household/
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10 years old were married with 22.3 percent not married and the rest
Family of the household population being either widowed, separated, unknown
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martial status and common law arrangement.


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Likewise, PWC (2016) stated that a study by the NDHS in 2008


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recorded that women who lived in poor households were seen to have
more children as oppose to women who lived an affluent or middle class
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lifestyle. Figures showed that women from poor households had an


average of 5.2 children in contrast to women who live a middle or
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affluent lifestyle tended to have an average of 1.9 children.


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3. MARKETING COMMUNICATIONS PLAN

3.1 Target Market

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While the future goal is to target the consumer demographic of 15 to 35 years olds
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in the ASEAN region, by creating the six segments: The Young and Free, The
Youthful, The Social Butterflies, The Go Getters, the Settlers and Fuller House
L'Oreal Paris have the opportunity to trial and target the chosen Primary target
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market 'The Go Getters' who fall between the ages 26-30. Therefore, L'Oreal Paris
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will be able to observe how successful the new product and campaign will be.
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Consequently, if successful L'Oreal Paris will be able to adapt the Philippine


campaign and marketing strategies and use the results from the Philippines to use as
a guide to appeal to other target demographics such as our secondary and tertiary
target market "The Settlers" and "The Social Butterflies" in the Philippines and the
ASEAN Region.
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3.2 THE CREATIVE IDEA

3. 2. 1 For You Diffusion Line

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In the Philippines, premium haircare brands like L’Oréal Paris tend to

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suffer from an image of being overtly expensive for regular and

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domestic use (Euromonitor International 2011). From this insight, we
have proposed the idea of crafting a diffusion line that provides

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consumers with a luxury haircare experience at an affordable price.

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The L’Oréal Paris For You range will be targeted towards females
who are lower to medium income earners aged between 26 and 31

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years old, residing in the urban areas of the Philippines.
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The For You range has 5 different haircare experiences that fight
against common hair issues that many Filipinos experience, while
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also filling a gap in the market by providing consumers with


premium value for money. To target the lower to middle income
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earners, we will be offering these products in single-serve sachets


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which will be available through sari-sari stores and


supermarkets/hypermarkets. Each value pack will include a sachet
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of shampoo, conditioner, deep conditioning mask and a post


shower treatment.
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Each sachet will be resealable with ziplock innovation to improve


the experience for the customer and create longevity within the
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product itself. One of our goals is to change the Filipino perception


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of L’Oreal. Our aim for L’Oréal is to retain its global image as a high
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quality premium brand, but increase product availability for lower to


medium income earners through our For You diffusion line.
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FOR YOU PRODCUTS

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3.3 JUSTIFICATION

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3. 3. 1 Justification

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Statement for 'For You'

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The reasoning behind the For You range name was inspired by everyday women.
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We wanted to create an affordable premium that they can use in the comfort of
their own home. We primarily wanted this to be a personalised and tailored
experience for each individual to make them feel special and pampered. Due to
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their busy lives we wanted to create a range that provides them with
accessibility and convenience, which is why the value packs include a shampoo,
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conditioner, treatment and deep conditioning mask, each tailored for different
haircare needs. To further enhance the personalised experience, we have
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incorporated zip lock technology which will prolong the life and quality of the
product. The For You range is a way to connect women to the L’Oréal brand and
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ensure that their hair is as beautiful and as strong as they are.


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4. Communication Objectives

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To communicate to target primary audience: The Go Getters

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(Aged 26-30 years old)

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Date of campaign Launch: 1st January 2017
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To create awareness for L’Oréal Paris For You range among 35%
of the primary target market by 30 June 2017.
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To obtain trial for L’Oréal Paris For You brand among 10% of
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the primary target audience by 30 June 2017.


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To achieve repeat purchase for L’Oréal Paris For You brand


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among 15% of the primary target audience by 1 Jan 2019.


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4.1 MARKETING COMMUNICATION
STRATEGY

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The Big Idea

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To provide our consumers with an easily accessible premium

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haircare experience at an affordable price.

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Unique Selling Proposition
The unique selling proposition for L’Oreal’s “For You” range
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is inclusive of a 4-in-1 sachet with resealable zip lock
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technology that is not currently offered within the


Philippines. The zip lock technology allows our consumers to
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reuse the product, offering them more value for their hard
earned money.
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Overarching Position Statement


L'Oreal Paris Hair Care's For You Diffusion Line is a unique
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brand that can offer a luxurious and affordable at home hair


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care regimen that appeals to those who seek either breakage


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repair, hydro-nourishing, full moisture, anti-dandruff and


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healthy hair shampoo, conditioners and hair treatment/ mask


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all in one sachet featured in a value pack


5. CREATIVE STRATEGIES

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Creative Strategy 1: TV Advertisement via ABS-CBN and GMA
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Objective: To create awareness for L’Oréal Paris For You via advertising on
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TV channels ABS-CBN and GMA, among 45% of the primary target market by
30 June 2017.
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Primary message type will be based on cognitive message strategies. The


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message we intend to communicate will generate awareness for the new


range as well as highlight our unique selling proposition whilst generating a
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need for the haircare product in their minds.


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The unique selling proposition that will be promoted in this advertisement is


that the For You line is the first of its kind being a luxury haircare experience
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offered at an affordable price, tailored to the consumer’s specific haircare


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needs. The sachets will be available in resealable ziplock technology to


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enhance the customer experience through convenience and extending the life
of the product. The advertisement will also focus on the benefits that
consumers will receive from using our product. The idea is to elicit thought and
encourage consumers to think about the brand, ultimately creating awareness
for the new line.
Using glamorous and highly acclaimed celebrities, we will be adopting a beauty
appeal and a promise of benefit. This will give the consumers the impression that
if they use our product, their hair will look the same way. Consumers who desire
this look will be attracted to the advertisement. An appeal to luxury and glamour
will be used to provide consumers with a lavish hair-care experience in the
comfort of their own home. The five celebrity ambassadors will be featured in the

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TV advertisement to further enhance brand awareness and credibility.

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The slice-of-life strategy will be employed to highlight the benefits of the For You

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range by taking the viewer on a journey from dry, untamed hair, to beautiful, silky
smooth locks. The advertisement highlights five common hair problems many
females experiences. Using a before and after shot, consumers will be able to

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visually see the benefits of the For You line.

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Creative Strategy 2: Facebook Advertising Posts

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Objective: To create awareness for L’Oréal Paris For You via sponsored
Facebook post, among 30% of the primary target market by 30 June 2017
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Sponsored Posts via Facebook
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Primary message type will be based on sponsored Facebook advertising using


conative and cognitive message strategies. The intentions of the sponsored posts
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are to generate awareness for the For You range and to lead the reader to an
action-inducing response. Within a sponsored post, we are able to reach a
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broader but more specific audience than a non-sponsored post. Action-inducing


language can include “Calling all hair lovers! Make your way down to our
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temporary pop-up store as the Makati Emporium.” A large component of our key
messaging revolves around our unique selling proposition.
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To capture the attention of the reader, Facebook posts will be accompanied by an


image as it increases the likelihood of readers noticing the post, and is also more
appealing to the eye. This resultantly creates brand awareness and also helps
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leverage brand knowledge. Within this campaign, the advertisements will rely
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upon the noticeability of the celebrity endorsements to reach a larger target


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demographic. Celebrity endorsements also create a sense of trust between


consumers and the product and a level of added credibility within. The positive
associations in which the consumers perceive our celebrity endorsers also helps
boost our brand image. The primary appeal of this strategy is centred around
beauty and the promise of benefit. To build an ongoing relationship with our
audience, we are using inclusive language to personalise the message. To
generate awareness about our diffusion line’s pop-up store, we have used
informative advertising to promote the event and it’s details.
We have also allowed consumers to access our website with the inclusion of a
hyperlink. Furthermore, each post within our Facebook page will incorporate a
call to action to encourage an action-reduced response.

The two primary executional frameworks used throughout our sponsored

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Facebook posts are the slice of life and informative strategies. Our
advertisements have a strong focus towards common haircare issues within

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consumers and contextually provide a relative product from the For You line to

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create a solution. Through thought leadership, we will provide insightful
information that shares helpful tips and tricks in regards to gaining optimal

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results through our products. By providing thought leadership, the audience will

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start to view us as the market leader in the haircare industry. This also creates
communication between our organisation and our consumers.

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Creative Strategy 3: Full Page Print Advertising in Cosmopolitan
Philippines
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Objective: To create awareness for L’Oréal Paris For You via advertising in
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Cosmopolitan's monthly magazine, among 20% of the primary target market by


30 June 2017.
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Full Page Print Advertisement in Cosmopolitan


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Primary message type will be based on advertising using cognitive and conative
message strategies. The intentions of the advertisement are to promote the five
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haircare experiences offered by the For You range. The phrase “Five new
experiences, find yours” creates thought and encourages the consumer to seek
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out the product. This highlights our unique selling proposition by promoting a
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luxury haircare experience that is tailored to the consumer’s specific haircare


needs.
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The use of attractive and well-liked celebrities attracts the reader’s attention.
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Employing the beauty appeal, the celebrities will be shown with luscious and
voluminous hair, emanating an aura of sophistication and confidence. This will
be overlaid with the phrase “Five new experiences, find yours” which is
consistent with the message strategy highlighting our unique selling proposition.
The models hair will be the main focus of the advertisement drawing the
attention of the consumer to their hair. Appeals to luxury and glamour will be
used to reinforce to the consumer that the For You range will provide consumers
with an indulgent hair care experience.
The use of glamorous and highly acclaimed celebrities’ builds awareness and
credibility for the brand. It also transfers any positive associations of the
celebrities to the For You line. Consumers are also more willing to try a new
product if they are aware of the brand, or are able to familiarise themselves with
the brand through celebrity endorsement.

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By implementing the slice-of-life strategy, it demonstrates to the reader what their
hair will look like if they use the L’Oréal Paris For You range. This advertisement,

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therefore, focuses on the benefits of using our product.

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Creative Strategy 4: Sales Promotion
Objective: To obtain intention to purchase for L’Oreal Paris For You, among

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10% of the primary target audience by 30 June 2017.

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25% off Coupon located in Cosmopolitan

The primary message for the sales promotion will be focused on using conative

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strategies to attract and encourage readers to trial our product through the
enticement of a discounted price. This will be located within the one-page
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advertisement found in the monthly Cosmopolitan magazine.
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By utilising the opportunity to receive a discounted price, we are appealing to the


hip-pocket nerve of the consumers. Our primary target market has minimal
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disposable income, therefore, it is important we provide them with the opportunity


to trial our product for a discounted price before committing to purchase the full-
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priced item. Providing our product at a discounted price lures in consumers who
may not have considered experiencing our product at the full price rate. If we
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provide satisfaction to consumers through our discounted product, this can


motivate them to repurchase it later at a full-price and inform their peers through
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positive word-of-mouth.
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Creative Strategy 5: Pop Up Store


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Objective: To obtain trial for L’Oreal Paris For You among 5% of the primary
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target audience by 29 January 2017


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Marketing Mix: Event (Pop-up store - Makati, Manila from 06 Jan-29 Jan 2017)

The purpose of the pop-up store is to generate awareness for our new range, to
create excitement around the launch the said range and to provide consumers
with the ability to trial our new haircare experience. The primary message
strategy for the event will focus on conative strategies. By offering a free haircare
experience, using the products within the For You line, consumers will have the
chance to sample our products and also have the option to purchase.
We will be employing qualified hairdressers to give consumers a premium-level
full hair-care experience. This will include a full hair assessment, which provides
the consumer with an understanding towards the treatment which is best suited to
their specific hair needs. Following their free hair assessment, they will receive a
deep cleanse and treatment concluded with a free styling session. This will give
participants the full L’Oreal hair-care experience. Consumers will also receive a

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goodie bag which includes the value pack tailored to their specific hair needs,
information regarding their specific hair care regime, details on how to join the app
and the best way to connect with us. Consumers will have the chance share their

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experiences on Facebook using the hashtag “#LorealForYou”. We believe

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through direct experience and through word-of-mouth, consumers will indirectly
promote our new line generating awareness and favourable associations with the

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range. The five key ambassadors for our brand will also be at the event to

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encourage traffic, media attention and share their experience on hair care issues.

The primary execution framework implemented provides a demonstration to

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consumers on how to use our products as well as our benefits which are
demonstrated through the slice of life strategy as mentioned above.
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Creative Strategy 6: Loyalty Program
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Objective: To achieve repeat purchase for L’Oréal Paris For You among 10% of
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the primary target audience by 1 Jan 2018.


Loyalty Program via L’Oreal For You App
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Primary message type will be based on conative message strategies, more


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specifically a promotional support conative advertisement. To encourage repeat


purchase, we are giving consumers the opportunity to receive free sachets and
discounts by entering the serial number inside the sachets or by scanning the QR
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code. This can be done through our app which is available on smartphones,
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tablets, computers and laptops. Each time a consumer enters a serial number, it
gets automatically tallied up against their account. Consumers who have an active
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account through the app are entitled to a special gift on behalf of L’Oréal Paris on
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their birthday.
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Consumers will be able to find the right haircare experience for their individual
hair needs and have access to useful tips on haircare and hair styling.
Furthermore, customers will receive notifications via the app and/or email on
exclusive sales, discounts, coupons, and other promotional offerings for a limited
time period. By offering these benefits, this will encourage repurchase, allow us to
build a relationship with our consumers, encourages loyalty towards the brand
and provides valuable insight into our costumer’s buyer behaviours and interests.
Creative Strategy 7: Half Year Sale
Objective: To achieve repeat purchase for L’Oréal Paris For You brand among 15%
of the primary target audience by 1 Jan 2019

Half Year Mass Sale

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To increase loyalty, we will be having a massive sale on all products under the For
You range. Through sales promotion, we will use conative appeals to increase brand
loyalty and repeat purchase which will further strengthen the relationship with our

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consumers. The half year sale will run for a week only and will be available in stores

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and online.

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6. MEDIA STRATEGIES

Media Strategy #1 AL
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The first media strategy that will be employed will be via the Internet, specifically
through the use of a Facebook page. This will be used to generate further brand
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awareness and loyalty through the saturation strategy and customer retention. The
Facebook page will primarily be utilised to promote the For You range through our
five ambassadors who have a great influence over the female population
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throughout the Philippines. Facebook is a highly effective and influential social


media platform due to a large amount of dedicated users throughout the
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Philippines.
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The page will include promotional messages to the target audience informing them
about the pop-up store with all the necessary details, as well as informative posts
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about the For You range. Facebook is a highly useful strategy as it is easy to
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connect with a lot of people in a short period of time, providing them with regular
updates to make them feel connected to L’Oréal, thus creating a stronger
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relationship with the customers. Furthermore, Facebook gives its users the ability to
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‘share’ posts with their friends, thus attracting potential new customers to view
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L’Oréal’s content and brand image. This exposure to the brand will fulfil the creative
strategies which endeavour to create brand awareness, thus increasing the
likelihood of L’Oréal’s For You range to gain more exposure and a larger customer
loyalty base.
Media Strategy #2
The TV advertisements will promote the L’Oreal Paris For You range and overall
brand awareness. The advertisements will be 30 seconds long and shown on
television channels ABS-CBN as well as GMA. These particular channels were
selected due to the high rating levels and popularity among or primary target market.

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During the first two months of the campaign launch, the advertisements will be shown
up to a total of 21 times per week. These advertisements will run simultaneously with
the print advertisement featured in Cosmopolitan magazine – further discussed in

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media strategy #5.

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After the first two months of the campaign have lapsed, the advertisement will be

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shown up to 14 times a week during months three and four and further reduced to

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only 7 times a week during the last two.

Media Strategy #3

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This media strategy includes the creation of a smartphone application. The primary
reason for this app is to gain insight into our consumer’s buyer behaviour, which will
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then assist us with the creation of our marketing communication tactics. The app will
include a menu bar where the user can take a short quiz to discover their hair type,
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and will then be provided will further information about haircare tips, lifestyle
education and what products to use to style their hair. The users will be provided with
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a list of retailers, pricing and GPS locations informing them about how far away they
are. The app is also a platform for the customers to engage with other users via a
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discussion forum, as well as a way to provide feedback and reviews. Additionally, a


website will be used and feature the same content as the app, however, will appeal to
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users who do not have access to a smart phone

Media Strategy #4
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Our third media strategy will see the utilisation of a pop-up store for the duration of 23
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days. At the pop-up store, we will be providing the full professional hair-care
experience for free to incoming foot-traffic. The full hair-care treatment is inclusive of
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a hair assessment, cleanse, treatment and style. At the conclusion of the hair-care
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treatment, participants are given a goodie bag which is tailored to their assessed
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haircare needs.

By posting about the event on our Facebook page, we are creating a level of
excitement within our primary target market. We have also enlisted the help of our
five celebrity endorsers to appear at our pop-up store which will draw the local media
– such as television and radio stations – as well as many fans. This creates a
competitive edge against other organisations as it creates widespread excitement.
Another initiative within the pop-up store is the invitation for participants to use the
“#LorealForYou” hashtag to document their day online. This will reach larger social
media platforms and inform their friends about their ventures – creating word-of-
mouth.

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Media Strategy #5
This media strategy will see the inclusion of a full-page advertisement within

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popular women’s magazine Cosmopolitan. We have selected to run our full-page
advertisement within Cosmopolitan as the magazine is extremely popular and

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places strong emphasis towards beauty. Cosmopolitan is an innovator in terms of
women’s magazines as it includes a range of ideas such as the latest beauty

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looks, must-have buys and celebrity related advice. The target market for

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Cosmopolitan is parallel to our primary target market as it consists of women aged
between their early 20’s and early 30’s.

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We have decided to include an advertisement that is relative to our television
advertisement to provide audiences with a sense of recognisability. Audiences will
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be able to identify the brand and range throughout the constant use of our five
celebrity ambassadors, as well as our For You logo.
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We have further decided to integrate a QRS code into our magazine


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advertisement to promote the use of our application, which is discussed in media


strategy #3.
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MEDIA
ADVERTISING AND DIGITAL COMMUNICATIONS

Online Social Media Advertising: Facebook

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TV Advertising: 30second Commercial


(See Appendix For StoryBoard)
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SYNOPSIS: Celebrity Ambassadors Pia Wurtzbach, Anne Curtis, Maine Mendoza, Julia Montes and
Sarah Geronimo are featured on 5 split screens. The celebrities appear to be suffering from the hair
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problems the new shampoos address. A voice over says "Hair Problems? Don't worry girl even your
favourite celebrities suffer from common hair problems". The celebrities all nod. Then the voice over
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says "Do what they do and use L'Oreal For You's new range to fix the hair problems you have". As the
voice over says this, the celebrities hair all transforms. The voice-over ends with "Five New Hair Care
Experiences Find Yours" with the celebrities all coming together in one shot
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App : L'Oreal For You Hair Care


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Website: L'Oreal For You

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Makati Pop-Up Store
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WELCOME TO
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FOR YOU
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OPEN UNTIL JANUARY 29


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2017
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Print Media Advertising: Cosmopolitan


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Media Schedule and Budget Allocation 2016-19

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Primary Target Audience: Females who are lower to medium income earners aged between 26 and 31 years old, residing in the urban areas of the Philippines.

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Population Total: 7,200,000
Cost of Product: $1.49
IMC Tactics and Budget and Scheduling

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Objective IMC Strategies 16-Dec Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17

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30 second TV 30 second TV 30 second TV 30 second TV 30 second TV 30 second TV
To create awareness for L’Oréal Paris commercials on commercials on commercials on commercials on commercials on commercials on
For You via advertising on TV ABS-CBN and ABS-CBN and ABS-CBN and ABS-CBN and ABS-CBN and ABS-CBN and
channels ABS-CBN and GMA, among Advertising GMA. GMA. GMA. GMA. GMA. GMA.

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45% of the primary target market by 21 commercials 21 commercials 14 commercials 14 commercials 7 commercials per 7 commercials per
30 June 2017 per week per week per week per week week week
Revenue $3.24m $3.24m $3.24m $3.24m $3.24m $3.24m

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Cost $938,797.44 $938,797.44 $625,864.96 $625,864.96 $312,933.11 $312,933.11
To create awareness for L’Oréal Paris Full page print Full page print Full page print Full page print Full page print Full page print
For You via advertising in ad in ad in ad in ad in ad in ad in
Cosmopolitan's monthly magazine, Advertising Cosmopolitan Cosmopolitan Cosmopolitan Cosmopolitan Cosmopolitan Cosmopolitan

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among 20% of the primary target monthly monthly monthly monthly monthly monthly
market by 30 June 2017 subscription subscription subscription subscription subscription subscription
Revenue $1.44m $1.44m $1.44m $1.44m $1.44m $1.44m

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Cost $15,500 $15,500 $15,500 $15,500 $15,500 $15,500
Commence
To create awareness for L’Oréal Paris promotion for the
Advertising on Advertising on Advertising on Advertising on Advertising on Advertising on
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For You via sponsored Facebook pop-up store on
Advertising Facebook using Facebook using Facebook using Facebook using Facebook using Facebook using
post, among 30% of the primary the 19th
sponsored posts sponsored posts sponsored posts sponsored posts sponsored posts sponsored posts
target market by 30 June 2017 December via
Facebook
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Revenue $1.13m $2.16m $2.16m $2.16m $2.16m $2.16m $2.16m


Cost $140 $280 $280 $280 $280 $280 $280
Create positive feelings and attitude Pop-up store in
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about the Loreal Paris For You among Celebrity Makati, Manila
35% of the primary target audience Ambassadors from 6 Jan - 29 Jan
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by 30 June 2017 2017


Revenue $2.52m
Cost $250,000
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Obtain intention to purchase for
Offer 25% off Offer 25% off Offer 25% off Offer 25% off Offer 25% off Offer 25% off
Loreal Paris For You, among 10% of

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Sales Promotion coupons located coupons located coupons located coupons located coupons located coupons located
the primary target audience by 30
in Cosmopolitan in Cosmopolitan in Cosmopolitan in Cosmopolitan in Cosmopolitan in Cosmopolitan
June 2017

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Revenue $810,000 $810,000 $810,000 $810,000 $810,000 $810,000
Cost $1.8m $1.8m $1.8m $1.8m $1.8m $1.8m
Pop-up store in

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To obtain trial for L’Oréal Paris For
Makati, Manila
You among 5% of the primary target Event
from 6 Jan - 29 Jan
audience by 29 January 2017

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2017
Revenue $540,000
Cost $70,000
To achieve repeat purchase for
Sales
L’Oréal Paris For You among 15% of

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Promotion/Loyalt Loyalty program Loyalty program Loyalty program Loyalty program Loyalty program Loyalty program
the primary target audience by 1 Jan
y Program
2019
Revenue $1.08m $1.08m $1.08m $1.08m $1.08m $1.08m

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Cost $500,000 $500,000 $500,000 $500,000 $500,000 $500,000
To achieve repeat purchase for 50% off all Loreal
L’Oréal Paris For You among 10% of For You products
Sales Promotion

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the primary target audience by 1 Jan Sale from 23 - 30
2018 June
Revenue $540,000
Cost 1.08m

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Total Revenue
Total Cost
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on 2016-19

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Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Total Budget

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$194,440,000

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$3,755,188.02

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$8,400,000

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$93,000

Advertising on Advertising on Advertising on Advertising on Advertising on Advertising on


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Facebook using Facebook using Facebook using Facebook using Facebook using Facebook using
sponsored posts sponsored posts sponsored posts sponsored posts sponsored posts sponsored posts
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$2.16m $2.16m $2.16m $2.16m $2.16m $2.16m $27,050,000


$280 $280 $280 $280 $280 $280 $3,500
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50% off all Loreal

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For You products

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$4,860,000
$10,800,000

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PR
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Loyalty program Loyalty program Loyalty program Loyalty program Loyalty program Loyalty program

$1.08m $1.08m $1.08m $1.08m $1.08m $1.08m $12,960,000

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$500,000 $500,000 $500,000 $500,000 $500,000 $500,000 $6,000,000
50% off all Loreal
For You products

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Sale from 21 - 30
Dec
$540,000 $1,080,000
1.08m $2,160,000

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$248,790,000
$22,811,688
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Measuring the Results of your IMC Plan

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Promotional What are you going to
Activity Objective Promotional Tactic IMC Budget How are you going to measure it? when are you going to measure it? Who is going to measure it? cost to measure Contingency Plan

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Strategy measure?
To create awareness for TV advertising Tv commercials on ABS-CBN and $4 million The level of awareness for Hire a market research company to conduct a pre measure - Jan 1 2017 Market Research company $20,000 If the advertising campaign is successful, Loreal Paris will
L’Oréal Paris For You brand GMA. 15 second commercials. the new brand. pre and post awareness study. Sales revenue post measure - June 30 2017 create a similar advertisment for future campaigns. If it is

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among 35% of the primary 1-2 months - 21 commercials per will also be analysed as a secondary measure unsuccessful, Loreal Paris will undertake a follow up
target market by 30 June week to the success of the advertising campaigns. research to find out why.
1 2017 3-4 months - 14 commercials per
week
5-6 months - 7 commercials per
week

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as above Print Advertising Full page print ad - $1,500,000 The level of awareness for Hire a market research company to conduct a pre measure - Jan 1 2017 Market Research company $20,000 If the advertising campaign is successful, Loreal Paris will
Cosmopolitan: 1 ad in each the new brand. pre and post awareness study. Sales revenue post measure - June 30 2018 create a similar advertisment for future campaigns. If it is

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monthly subscription will also be analysed as a secondary measure unsuccessful, Loreal Paris will undertake a follow up
to the success of the advertising campaigns. research to find out why.
2

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as above Social Media Sponsored posts via Facebook $200,000 The level of engagement, The number of likes, shares and comments of At the end of each month Marketing department for Loreal $0 On a weekly basis, measure the level of engagement for
advertising including likes, comments the sponsored posts and number of likes for each post. Successful posts will be replicated.
and shares for each post and the company page.
number of likes for the
3 company page

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as above Celebrity Using 5 famous Filipino celebrities $9 million The number of sales revenue The number of purchases June 30 2017 Market Research company $20,000 If the use of celebrity endorsement is successful in terms
Endorsement to endorse the For You product affected by celebrity of generating awareness, and creating credibility for our

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4 range. endorsment for the new new line, we will continue to use them throughout this
product range. campaign. If they are unsuccessful, Loreal Paris will
undertake a follow up research to find out why.
Pop-up store in Generate brand awareness $50,000 The level of engagement on Number of times the hashtag has been used. On a daily basis by a Loreal staff Marketing department for Loreal $0 If the pop-up store and use of hashtag to generate
Makati, Manila through free hair Facebook and Twitter via the Foot traffic and number of customers that member exposure is successful, this couls be used for another

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from 6 Jan - 29 Jan washes/treatments and encourage hashtag, receive the haircare experience. campaign in the future. If this is unsuccessful, conduct
2017 customers and viewers to hashtag including likes, comments market research to find out why.
5 as above
their hair experience via Instagram and shares.
and Facebook (#Loreal4U) The number of people who
either participate as well as

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viewers.
To obtain trial for L’Oréal Pop-up store in Offer a free hair experience which A part of the The number of customers Measure the number of customers that come On a daily basis by a Loreal staff Marketing department for Loreal $0 If target met, use the pop up store/hairdressing
Paris For You brand among Makati, Manila includes: same event that experience/trial the in and get the free haircare experience. This member competition for another campaign later down the track. If
10% of the primary target from 6 Jan - 29 Jan hair assessment new product. also includes purchases. the pop-up store is unsuccessful, conduct market research
audience by 30 June 2017 2017 hair cleaned, treated and styled by to find out why.
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6 hair dressers using the new range
from Loreal Paris For You. Each
customer takes home a free
haircare package.
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as above Serial/Reward Offer 25% off via coupons $400,000 The number of coupons Using an online form via Eloqua, the number of Daily (automatically calculated) Eloqua Forms $0 if target met, use promotion at a later date using key
7 codes promoted in Cosmopolitan processed as a measure of coupons will be automatically counted. variables. If failed undertake market research to find out
trial why people didn't buy with coupons.
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To achieve repeat purchase Loyalty program via Through our app, the customer $3.5million How many Loyalty points An online database will automatically calculate Daily (automatically calculated) CRM Manager via Salesforce $0 if target met, use promotion at a later date using key
for L’Oréal Paris For You the app which is enters the serial number inside of have been accumulated by the number of individual serial numbers variables. If failed undertake market research to find out
brand among 15% of the available via mobile the packet. This enables them to repeat customers therefore processed. why people didn't buy with coupons.
primary target audience by 1 phone/PC/laptop/t win free sache's and discounts. calculate number of units
8 Jan 2019 ablet Customers will also receive free a sold to those customers.
special gift on their birthday.
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as above Have a massive half At the end of each quarter Loreal $2.5 million The level of sales during the The number of items that have been Bi-annually (June 30 and Decemeber Marketing department for Loreal $0 If target is met, use the promotion at a later date,
year sale will have a massive sale on Loreal sale period purchased during the sale period compared to 31) replicating the same deal. If the promotion is unsuccessful,
Paris For You products the number of purchases during normal conduct market research to find out why.
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business days.
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7. CONCLUSION

Recommendations

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As requested by L'Oreal Paris, the goal to boost the hair care category of
their brand in the ASEAN region was the objective. However, after an in-

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depth analysis of the hair care market within the ASEAN region, it was

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evident that there was a gap in the Philippines that L'Oreal had the
opportunity to bridge. Consequently, by choosing one country out of the
ASEAN region, it allowed us to do an in-depth analysis of Philippine's hair

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care competitors and consumer demographics. As a result, the creation of
the new diffusion line L'Oreal Paris For You was created based on consumer
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demographics and offerings in the hair care market that were missing. By
focusing on the Philippines and choosing a segment of the target market
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(The Go Getter's) L'Oreal was hoping to reach, this will allow L'Oreal to
measure and analyse the success of the campaign and in the long term use
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elements of the campaign that were effective in reaching the target market
in the Philippines in the remaining ASEAN countries. The chosen strategies
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included: Traditional advertising such as print media, online social media


through Facebook, an innovative Hair Care App, and website and TV
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advertising. These were chosen as were best suited to reaching the target
audience, therefore, achieving our objectives.
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As technology progress and with the introduction of the new app,


recommendations that can be made to L'Oreal Paris is a development of
new hair technology into the app that allows users to scan their hair for an
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assessment which will lead to the technology suggesting what L'Oreal For
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You products would be best suited to treat their hair. Furthermore, as the For
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You line creates a large awareness among the target market, L'Oreal have
the opportunity to expand from the Urban regions of the Philippines to the
rural regions, likewise, extend the For You line by launching more innovative
products, thus leading L"Oreal Paris to gain a larger market share in the
Philippines in the future and hopefully in the remaining ASEAN region by
using the Integrated Marketing Strategy used in the Philppine's as a guide
8. APPENDICES
Appendix A: L'Oreal SWOT Analysis

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Appendix B: Competitor SWOT Analysis
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Appendix C: Competitor Positioning Map and

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Threat Scale

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Appendix D: Market Offerings in the Philippines

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Appendix E: L'Oreal Mood Boards and Prism

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Appendix G: L'Oreal For You App

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Appendix H: L'Oreal For You Website

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Appendix I: Story Board

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Scene 1A Scene 1B End Scene Scene 2A
Mid shot appears of 5 celebrities Pia Wurtzbach, Maine Mendoza, Julia Voice Over says “Don’t worry girl, even your favourite Transitions to celebrities backs of head with their hair
Montes, Sarah Geronimo and Anne Curtis

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celebrities suffer from hair problems too!” transforming
Each Celebrity looks sad, touching their hair
During voice over celebrities smile and nod Voice over says “Do what they do and use L’Oreal’s For You range
Voice over says “Hair Problems?” to fix the hair problem’s you have”
7 seconds

C
5 Seconds
7 seconds

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Scene 2B Scene 2C End Scene


Transitions to close up shot of Pia Wurtzbach hair transforming with the five Shot Transitions to mid shot of all celebrities sitting/ standing together,
products beside her hair smiling and happy each holding a hair product from the range
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3 seconds Voice over says “Five new experiences, Find Yours”
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Ends with celebrities all saying “L’Oreal Paris For You”

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7 Seconds: Total 30 seconds



Appendix J: L'Oreal For You Facebook Post

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Appendix K: L'Oreal For You Cosmopolitan


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8. REFERENCES
Clow, K.E & Baack, D 2014, Integrated Advertising, Promotion, and Marketing Communications, Pearson
Education Limited, England

Data World Bank 2016, Philippines Data, Data World bank, viewed 10th May 2016
http://data.worldbank.org/indicator/EN.ATM.CO2E.PC/countries/PH-4E-XN?display=graph

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Nottage, L 2015, Cosmetic Regulation under national and ASEAN Law, The University of Sydney, viewed
10th May 2016 http://blogs.usyd.edu.au/japaneselaw/2015/06/cosmetics_regulation.html

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Find The Data 2016, Philippines, Country Facts, viewed 10th May 2016 http://country-
facts.findthedata.com/l/111/Philippines

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Every Culture 2016, The Philippines, Every Culture, viewed 10th May 2016

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http://www.everyculture.com/No-Sa/The-Philippines.html

Index Mundi 2015, Philippines Demographics Profile 2014, Index Mundi, viewed 10th May 2016
http://www.indexmundi.com/philippines/demographics_profile.html

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MarketLine 2015, Consumer Profile Series Philippines In-depth PESTLE insights, Swinburne Library
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Datasbase

MarketLine 2015, Philippines Hair Care, Swinburne Library Database


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Philippine Statistic Authority 2016, Statistics, Philippine Statistic Authority, viewed 10th May 2016
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https://psa.gov.ph/

National Encyclopedia 2016, Philippines, National Encyclopedia, viewed 10th May 2016
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http://www.nationsencyclopedia.com/economies/Asia-and-the-Pacific/Philippines.html
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