12. Adlab L’Oreal

L’Oreal Presentation part 1.

20171006 L’Oreal Part One

L’Oreal Presentation part 2.

20171006 L’Oreal Part Two


Questions for l’Oréal:

  • Is the distribution channel only B to B and B to B to C or should/can we also focus on a B to C approach? You can also propose alternative roads, go out of the walls.
  • Do we have to reach a profitability of 10% in one year? If so, do we have to split our Profit and Loss analysis monthly? You can achieve profitability at three years. There is no need for a monthly division.
  • Do we have a maximum investment budget to spend in order to achieve our profitability goal? No
  • When the positioning of the biolage raw product is required, should it be compared to other products of other brands, compared to other biolage products or even with other Matrix lines? The goal is to differentiate the position of RAW compared to the other Matrix lines (of which Biolage is part). Obviously, the most complicated part is differentiating it from Biolage, if it needs to be differentiated by Biolage, which however has a natural but slightly different positioning. Obviously, the goal is not to poise the market share of other Matrix lines, but to add additional consumers to the market.
  • Should we consider the Italian or international market? Consider the Italian market if you find information on the international market is a plus.
  • Don’t we need any kind of informations on the market in order to define volume and turnover of the product? Knowing market information would definitely be easier and it’s part of your job to find market-related information. You can go to one or more hairdressers to understand how many products order or hypothesize the size of the market and estimate a distribution and a volume
  • We realized that the line R.A.W. includes three different products: shampoo, balm and hair mask. However, this information is not present within the slides. Do we have to structure the P & L and the presentation considering all three products actually exist or just shampoo? Biolage RAW consists of 3 ranges for 3 different needs (NOURISH, RECOVER and UPLIFT). Specifically, it is made up of 16 products – We did not include them in detail because they are easily available online. P & L includes all products. The line consists of 3 shampoo 325ml (resold format for consumer), 3 balm 325ml (resold format for consumer), 3 shampoo 1liter (exclusive use hairdresser), 3 conditioner 1liter (exclusive use hairdresser), 3 masks 400ml (exclusive use hairdresser), 1 oil 125ml (resell format for consumer but also salon use).
  • The only budgets that have been given are those relating to marketing and brick and mortgage, but we in the P & L planning have foreseen additional expenses that are not plausible by nature within the allocated budgets, such as staffing and distribution costs. Can we consider these additional expenses in the brick and mortgage budget or should we not consider them at all? The budgets you have allocated are examples of budgets that you have given to guide you, and you can also include other items if you think it is useful.
  • How do Biolage’s competitors identify themselves? It’s part of your job to figure out how to identify competitors and what common features they have with their competitors. In any case, competitors may only be useful as benchmark for price or volumes but you do not have to differentiate Biolage from competitors but from the rest of the Matrix portfolio
  • Do we have to include any advertising initiatives in order to raise brand awareness in our project? Of course, you can do it.
  • As a reference market we have to analyze: the cosmesi-hair products – eco-sustainable and natural (both for consumers and for benefits to the environment)? Biolage RAW stands for its characteristics in the professional natural market, so natural hair products. If you also have a focus on the general natural market it is a plus.
  • When setting a price, should we impose the price on the Beauty Salons or the price at which the latter will resell the customer? The price at which our income statement is constructed is the CATALOG price, that is, the sell-in price, therefore the price that the hairdresser pays to buy the product
  • Are we talking about a product launch on the market or is the product already on the market? The Biolage RAW brand in reality is already on the market (launched in March 2017) but considered as if it were not. Your job is to place it on the market and launch it.