An Empirical Study Of Different Promotion Factors On The Sales Of L’Oreal Hair Care Category

With the development of China’s economy, L’Oreal maintained a good momentum ofsustained, steady and rapid development. When the financial crisis in2008, L’Orealfound that, in China and other developing countries, the financial crisis is not soserious, so it was decided to accelerate the pace of development in developingcountries, to launch the L’Oreal Volkswagen hair products in China. In China, themarket of shampoo is very competitive, Procter&Gamble, Unilever and otherinternationally renowned FMCG enterprises occupy most of the market share in theface of fierce competition, the major companies have been offering differentpromotional tactics, L’Oreal is no exception. However, the different promotional tools,promotional factors of product sales, what impact, how to quantitatively assess theeffect size is an important issue put in front of L’Oreal.Category promotional ideas come from the use of innovative category management,L’Oreal care products are divided into four categories, were shampoo, nursing,personal care ensemble class, total class. And select three L’Oreal major promotionalfactors: category discount rate, the competitors related category discount rate, posters,promotional type. Analysis by the methods of empirical research to the categorydiscount rate, competitors in the relevant category discount rate, three promotionalposter type of promotion factors shampoo, nursing, personal care ensemble class, totalsales of the four categories the significant comparison.Paper selected L’Oreal in Eastern Region, RT-MART, from July2011to July2012, areal POS sales data, in the demand price theory, based on previous studies at homeand abroad of the establishment of the econometric model equation, through the paneldata approach, respectively the four categories panel data regression analysis.（1）After empirical research has been three conclusions:A category of its own discount rate competitors category discount rate on the categorysales impact significantly, and the category of its own discount rate is positivelyrelated to sales, competitors related category discount rate sales negatively correlated; posters promotional category sales impact proved to be effective and posterspromotional effect> small posters promotional effect> posters promotional effect, sothe L’Oreal posters promotional investment should increase.（2）For L’Oreal shampoo, competitors shampoo Discount rate impact factor greaterthan their own shampoo discount rate affect the coefficient,L’Oreal shampoo products the brand influence consumer purchase intention is quitevulnerable. Shampoo brand loyalty comparative low, so should increase investment inbrand influence, appropriate control efforts to promotional discounts(3) For L’Oreal care class for Care class discount rate coefficient greater thancompetitors nursing class discount rate impact coefficient. Instructions, L’Oreal careproducts brand influence is relatively high, the tendency to compare the purchasingpower of consumers of L’Oreal care products. L’Oreal should maintain their advantageprojects, increase investment in promotional efforts, advance to seize more marketshare.