Lancome Marketing Mix
Lancôme
Jill Rose Lauren Ruegemer
Solution
We suggest:
Lancôme follow a differentiated market coverage strategy by introducing Lancôme Hyp. Lancôme change consumers’ perceptions and preferences for higher quality consultation service and a wider product line, while only changing consumers to prefer higher innovative technologies.
The Problem Solving Format allowed us to analyze Lancôme's current business plan. We determined that Lancôme should switch from an undifferentiated market coverage strategy to a differentiated strategy. This differentiated approach will potentially increase consumer preferences for wider product lines, higher consultation quality and innovative technologies. Lancôme will accomplish this by focusing on advertising and promotional campaigns that address the product and brand benefits described in the core benefit proposition. In addition, our recommended MAGIC strategy will help Lancôme defend itself strongly against competitors.
Market
Overall Market: Cosmetics and Skin care Focus Market: Skin care
We began our Lancôme analysis by defining the market which is cosmetics and skin care. This market can be further divided into the following categories: body care, makeup, hair care, and fragrances. Since Lancôme focuses on keeping women looking healthy and young, we chose skin care as the focus market, which enables us to eliminate brands that are not substitutes for skin care, such as L'Oreal and Almay. Within this skin care focus market, Lancôme's main competitors are Clinique, Perscriptives, Mac, Estee Lauder, Olay, Neutrogena, Clearasil and Clean and Clear. These competitors act as substitutes to our Lancôme brand.
Segmentation Variables
Benefits Sought
Special / Regular
Marketing Mix Sensitivity
Price Sensitivity
Demographics
Age
In order to determine our market coverage strategy, we must first consider variables that can segment our focus market. Any company could potentially use these segmentation variables to segment the skin
Jill Rose Lauren Ruegemer
Solution
We suggest:
Lancôme follow a differentiated market coverage strategy by introducing Lancôme Hyp. Lancôme change consumers’ perceptions and preferences for higher quality consultation service and a wider product line, while only changing consumers to prefer higher innovative technologies.
The Problem Solving Format allowed us to analyze Lancôme's current business plan. We determined that Lancôme should switch from an undifferentiated market coverage strategy to a differentiated strategy. This differentiated approach will potentially increase consumer preferences for wider product lines, higher consultation quality and innovative technologies. Lancôme will accomplish this by focusing on advertising and promotional campaigns that address the product and brand benefits described in the core benefit proposition. In addition, our recommended MAGIC strategy will help Lancôme defend itself strongly against competitors.
Market
Overall Market: Cosmetics and Skin care Focus Market: Skin care
We began our Lancôme analysis by defining the market which is cosmetics and skin care. This market can be further divided into the following categories: body care, makeup, hair care, and fragrances. Since Lancôme focuses on keeping women looking healthy and young, we chose skin care as the focus market, which enables us to eliminate brands that are not substitutes for skin care, such as L'Oreal and Almay. Within this skin care focus market, Lancôme's main competitors are Clinique, Perscriptives, Mac, Estee Lauder, Olay, Neutrogena, Clearasil and Clean and Clear. These competitors act as substitutes to our Lancôme brand.
Segmentation Variables
Benefits Sought
Special / Regular
Marketing Mix Sensitivity
Price Sensitivity
Demographics
Age
In order to determine our market coverage strategy, we must first consider variables that can segment our focus market. Any company could potentially use these segmentation variables to segment the skin