Clarins : Yesterday and today

Résumé du document

The aim of this document is to critically review the marketing and business of the company plan by producing a marketing strategy report (see Appendix). Afterward, we shall present a new strategy to address issues that have been highlighted during the audit.

This report contains a marketing audit of Clarins, an internationally acclaimed French company specialized in cosmetics. Based on this marketing audit, we have defined a series of key marketing objectives to be achieved within three years in order to improve Clarins group results and market penetration towards its competitors. Globally, the luxury cosmetic market is highly expensive. Multinational corporate companies support the main brands of the industry with huge financial resources. Despite the global economic downturn, the customers are splurging cash on beauty products and services. Moreover, some countries are economically and socially emerging, with new potential customers for cosmetics. The technological aspect is crucial in this industry as innovation is the key to success and as a response to new demands for natural substances, sustainable development and no animal testing must be found. Finally, we must note that the cosmetic industry is regulated by strict legislation and permanent controls from public authorities.

Extraits

[...] The opening of direct selling however has been delayed due to procedural problems. It is feared that even if the ban is lift, the government and local authorities might continue to discourage direct sales through various means. In such situation, Clarins might suffer in its effort to introduce direct selling in China. Presence of dangerous cosmetics ingredients: A number of cosmetic products are made of ingredients that could be harmful to health. For instance alpha- hydroxyl acids (AHA) found in moisturizers, toners, cleansers and masks are known to increase the skin's sensitivity to the sun by as much as thereby exposing consumers to accelerated skin aging and the possibility of skin cancer. [...]

[...] - Comfort positions in Asia with a product development. - Increase penetration in Europe and USA with a product development Extend the offer in terms of products - Create a new product range for Europe and USA: MyFirstClarins. - Create a new product range for Asia: Soleil Levant by Clarins. - Extend the product range of Stella Cadente: 1 launch within 2 years. Acquire new brands and create strategic alliances - Acquire 100% of the capital of the brand KIBIO (bio positioning) within 3 years. [...]

[...] The perfume department increased by and reached millions The positive evolution of the brand in 2005 and 2006 is almost only due to its perfume activity. The skin care department was very successful compared to the evolution of the market. It is due to the strategy followed by Clarins Turnover per brand The most important brand of the portfolio is Clarins, which represents 61% of the revenues. Clarins perfume corresponds to millions. Thierry Mugler comes second with a percentage of the revenues of 17% in 2006, corresponding to millions. [...]

[...] Thierry Mugler brand is also starting to age. It does not attract new customers and only survives because of its regular customers. US lawsuit: A lawsuit settlement in the US alleged that Clarins, along with certain manufacturers of cosmetics products department stores, violated the anti trust laws in connection with the pricing of these products. Under the terms of the agreement, the firm and other cosmetics companies were required to pay $175 millions in merchandise and $24 millions in court costs. [...]

[...] Azzaro perfumes are mostly bought by men average years old between 40 and 50. Stella Cadente perfumes are mostly bough by women (no men range) but the consumer is younger than for the other product (between 25 and 35 years old) PORTER ANALYSIS We will use the model of Michael Porter (Dibb et al. 1970) and analyse competitors, suppliers, and distributors to establish Clarins' main competitive threats. Technological context 1 Industry competitors The market of the cosmetic industry is very concentrated with approximately 10 major corporate companies but is still very competitive with a large offer of products and brands. [...]