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Marketing plan of L'Oreal Melbourne Fashion Festival

Paper Type: Free Essay Subject: Marketing
Wordcount: 4468 words Published: 3rd Jan 2018

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Listed as a not for profit organisation since 1996, the Melbourne Fashion Festival Ltd, now known as the LOreal Melbourne Fashion Festival, has always been at the forefront of the fashion world. Over the years, the LMFF has become one of Australias top fashion events and focuses on target markets that are fashion oriented, social oriented and a mixture of both. The events success can be recognised by the efforts made by many individuals and businesses that have been with the organisation for many years.

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On March 14, 2011, the LMFF launched ‘Fashion Full Stop: Decades of Australian Fashion’, an event that celebrated designers, along with many labels and styles that have shaped Australia’s history in fashion. With tickets ranging from $79 to $39, 4000 fans filled the Melbourne Convention and Exhibition Centre’s plenary auditorium. Due to this, the event has been deemed a large priority in future shows and an extremely important opportunity to raise the profile of the organisation (L’Oreal Melbourne Fashion Festival Pty Ltd, 2011) Therefore the main objective of this event is to be recognised both nationally and internationally as the leading event of its kind and stimulate activity across the retail, clothing, footwear, and creative sectors.

The purpose of this marketing plan is to identify LMFF’s many strengths, weaknesses, opportunities and threats ; and these must be used in union with several marketing strategies, actions and a budget of $47 200 to eventually achieve the overall objective. Although the company’s strengths and opportunities outweigh the organisation’s weaknesses and threats, the growing competition within the fashion industry and changes in the marketing environment need to be of focus. For the event to be a success, the organisation must modify or maintain the strategies and actions to directly reflect these changes.

Event Information

The aim of the Fashion Full Stop Opening Runway event is to celebrate and promote iconic designers, labels, styles and moments from the 1960s to today, stimulate sales and present Melbourne as a precinct full of design superiority.

Assessment of the Marketing Environment

Internal Environment


Since the LMFF initiated in 1996, the unique ‘L’Oreal’ brand image has flourished

Created brand awareness, recognition and emotional value to its target audiences

Has built a reputable media profile

Has been able to grow and produce a diverse range of activities

Showcases many strong brand names and sponsors

Sales within Melbourne and other parts of Australia have skyrocketed

Increased staff attitude towards the event, opinions about the event, and expertise and experience during the event


Certain markets are not focused, e.g. low income earners. This may be intentional as the event focuses on exclusivity.

Due to the lack of detail about the event in regards to online advertising, television advertisements and more, previous customers may have a perception that the event may be similar to the previous year or be similar to competition.

External Environment

3.21 Micro-Environment

Competitive analysis and Venn Diagram

Direct competitors (offer similar, but somewhat differentiated events) include:



Target Market

Offerings and/or Sales

Date and time

Rosemount Australian Fashion Week






Mercedes Benz Fashion Festival


Similar, but offer free events


Achieved an increase of 61% on ticket sales and 33% on attendance in 2008

(Lindsay Bennett Marketing, 2010)


Motorola Melbourne Spring Fashion Week


Nearly all events are free


Very similar


Perth Fashion Festival




Very similar


New Zealand Fashion Week

Auckland (outside Australia)

Very similar


Very similar


Similar offerings



Well known




Indirect competitors (seek to provide the same benefits to the consumers, but in a different form) include:

Port Fairy Folk Festival

Future Music Festival

Moomba Festival

3.22 Macro Environment – PESTE Analysis

Political forces/legal and regulatory influences

The LMFF is required to uphold and adhere to many political and legal regulatory practices and the most important include:

Drinking laws: all underage visitors must be accompanied by an adult in bars and dining rooms (L’Oreal Melbourne Fashion Festival Pty Ltd, 2011).

Entry: refused entry is given to any person that is affected by alcohol/drugs, behaves aggressively or reduces the reputation of the LMFF or any organisation associated with the LMFF (L’Oreal Melbourne Fashion Festival Pty Ltd, 2011).

Intellectual property: in the interest of all the stakeholders, registered designs, trademarks, patents, and copyrights all need to be respected by using intellectual property laws. It “encourages technological innovation and artistic expression in industries” (Commonwealth of Australia , 2010).

Economic trends

In economic troubles, fashion, the arts and entertainment often get sacrificed because of a decrease in disposable income. However, the slowdown within worldwide expenditure due to the impact of the global economic crisis has had a little effect on the LMFF. In fact, consumers are still spending a large amount of income, visiting the festival on an annual basis, and sponsorship is still going strong.

Socio-cultural trends

According to Easey (2008), “fashion is ultimately about change….many of these changes are brought about by designers trying to create something new to satisfy customers, but others are because of influences beyond the control of designers or manufacturers….some are within a company’s control and others are way beyond it”. Therefore, the LMFF opening runway show will have to focus on the current needs and wants of the target market and find a way to satisfy them.

Technological trends

In several industries, the development and utilisation of new technology gives the opportunity of improving a consumer’s experience. Recently, designers such as Alexander McQueen and Alexander Wang used technology to stream their fashion shows live online (Moore, 2010). The brand DKNY has also started using a barcode technology for invitations and seating arrangements for its fashion show (Moore, 2010). This type of technology could be developed for use in the LMFF opening runway show.

Environmental trends

Recently, an ethical fashion forum has developed a mission to “support and promote sustainable practices, facilitate collaboration, raise awareness and provide the tools and resources needed to reduce poverty, reduce environmental damage and raise standards in the fashion industry” (Ethical Fashion Forum, 2011). Therefore, the push to become ‘green’ is fairly large on fashion shows and designers.

SWOT Analysis



Established in 1996

Unique ‘L’Oreal’ brand image

Not for profit organisation

Stimulates sales within Melbourne and several brands

Presents Melbourne as a centre of design superiority

Diverse range of activities


Strong brand names

Good reputation

Popular shows created annually/positive track record

Staff attitude and opinions

Staff expertise and experience

Existing media profile/reputable media partners or sponsors


Celebrity attraction

Although variety of offerings, certain markets are not focused on

Perception that customers may already know what’s of offer

Lack of detail

Current marketing campaigns are shallow and not environmentally friendly



Increase visitors and attract tourists

Boost retail sales and economy

Exposure for sponsors/volunteers

Upcoming designers and existing designers to showcase talent

Build reputation of Melbourne

Opportunities for the LMFF to create something different

Competition/growth of other tourism areas in Melbourne

Limited finance

Infrastructure renewal due to increase of visitors

Safety and security

Major events throughout the year that target market prefer to spend time and money on

Hard to create niche products/services due to continuously changing environment

Increase in push to become ‘green’

Target Market

Consumer Information

There are three types of target markets:

Primary: approximately 50% of attendees, require a small amount of marketing costs, go for the fashion and are loyal to the event.

Secondary: approximately 30% of attendees, require a slightly larger amount of marketing costs, use the fashion event as a social experience.

Tertiary: approximately 20% of attendees require a large amount of marketing costs; go as it’s an event close to home.

Target Markets and Market Segmentation

Market Research

For the purpose of improving the LMFF event and in order to determine the characteristics of the primary, secondary and tertiary target markets, secondary research has been used. This information has not been directly extracted from the audience, but instead from a variety of sources. A useful way in identifying the reasons why several target markets visited LMFF was to create a brand bullseye, which takes into account a variety of emotional and functional perceptions, opinions and hot buttons (Skildum-Reid et al, 2007), see appendix 1.

Consumer Segmentation

The primary target market are associated with the fashion world and are visiting the event to connect with designers, musicians, consumers, and retailers. In other words they are “high profile guests who have been actively engaged with the festival throughout its history and continue to support LMFF into its future” (L’Oreal Melbourne Fashion Festival Pty Ltd, 2011). The secondary target market enjoys socialising, spending a large amount of disposable income and are easily influenced by peers and the media. The tertiary are people that are interested in the arts, but use location and convenience to satisfy their needs and wants.



Target Market




21 – 50

18 – 30


Female and Male

Female and Male

Marital Status






Children living at home




Middle to upper class, large amount of income, between $50 000 – $110 000

Lower class, large amount of disposable income, equal to or less than $30 000

Internet use/ type



Online buying habits


High and know how to buy online tickets, etc

Television viewing preferences

Pay television

Pay television and free to air television

Transport use


Public and Private

Beverage and food preferences

Expensive and prefer alcohol and tea/coffee

Cheap and prefer alcohol and sweet drinks

Employment status/occupation

Employed, usually in the fashion industry

Student, unemployed or new worker


Both domestic and international

Domestic and urban/metropolitan areas

(Information collected from EIT Inc, 2005; Frankie, 2011; Fashion TV, 2011)



Target Market




City prone

Enjoys shopping

Quality oriented

Frequent buying behavior

Interested in the arts – music, dance etc

Upscale and well-off



Value-for-money oriented

Social status activities

No major responsibilities

City prone

Big spenders


Independent/Opinion leader

Brand and fashion conscious

Very sensitive to advertising


Always searching for the newest trends and products representative of their social image

Influenced by peers


Opinion formers


(Information collected from EIT Inc, 2005; Frankie, 2011; Fashion TV, 2011)


Overall Business Objective

The overall business objective of this event is to be recognised both nationally and internationally as the leading event of its kind and to stimulate activity across the retail, clothing, footwear, and creative sectors.

SMART marketing objectives

The objectives below conform to marketing standards of setting objectives which are Specific, Measurable, Achievable, Results oriented, and Time bound (Skildum-Reid et al, 2007).

To obtain international and national prime time stories on channel FTV, various advertisements on national radio station NOVA, and a major advertising campaign with a colour photo in the magazine Frankie, one month before the event.

To increase ticket sales domestically and internationally by 10% compared to the previous year’s opening runway event.

To increase awareness and recognition of the brand L’Oreal in Australia from 20% to 35% by February 2012.

To obtain five more sponsors prior to the event in order to increase funds by $150 000.

Marketing Strategies

Link to objective



Measurement mechanism


This will achieve a large market penetration in the target markets and will encourage ticket sales before the event

1.1 Provide digital footage of highlights of last year’s event to various television and radio stations

Number of televised stories that use the material

1.2 Create opportunities for video and audio interviews with designers of the event

Number of interviews

1.3 Create and distribute press kits to local and international media

Quality and acceptance of media kit


This will achieve market growth and showcase the event as being popular and well-known

2.1 Release ‘early bird’ tickets at a discounted price to loyal customers

Advance ticket sales and/or revenue, customer database

2.2 Provide online ticket purchases through connection of event website and ticketing company

Ticket sales and/or revenue, customer database of event and ticketing company

2.3 Cross-promote with the event designers, singers and dancers through various advertising campaigns

Number and quality of cross promotions


This will boost ticket sales and product sales before the event due to brand loyalty and recognition

3.1 Offer and provide samples of L’Oreal products to customers

Number and frequency of customer purchases, customer opinion and satisfaction

3.2 Cross-promote event with L’Oreal advertisements

Number, quality and success of cross promotions

3.3 Start an online social page e.g. facebook to discuss the brand/product/event

Number of visits/hits/comments/’likes’/followers


This will allow the event to produce better offerings in regards to the exclusivity of the event and will increase the events profile

4.1 Create a sponsorship proposal and press kit that stands out from competitors

Acceptance of proposal and number of responses, number of proposals from competitors

Action Plan


Action Officer

Time Frame (months before event)












Strategy 1.1

Action 1.11

Contact FTV and NOVA representatives to find out deadline

Public relations/media team

Action 1.12

Collect and compose footage of event and audio interviews

Public relations/media team

Action 1.13

Send to FTV and NOVA by deadline

Public relations/media team

Strategy 1.2

Action 1.21

Develop an interview script

Public relations/media team

Action 1.22

Contact agents of designers or designers directly and set up a meeting to interview

Public relations/media team

Action 1.23

Collect and condense interview data into clear information

Public relations/media team

Action 1.24

Send to editor of magazine by deadline along with press kit

Public relations/media team

Strategy 1.3

Action 1.31

Contact media representatives to find out deadline

Public relations/media team

Action 1.32

Write media release and information

Public relations/media team

Action 1.33

Develop press kits to send to magazine

Public relations/media team

Action 1.34

Send to editor by deadline

Public relations/media team

Strategy 2.1

Action 2.11

Contact ticketing company to inform them of intention to sell tickets to event, with prices and discharge information

Marketing team/Ticketing manager or assistant

Action 2.12

Create online flyer to advertise event and ‘early bird’ discount

Marketing team

Action 2.13

Send flyer to ticketing company database and event database through both mail and e-mail


Strategy 2.2

Action 2.21

Liaise with marketing team of ticketing company about website link

Marketing team

Action 2.22

Create link within current event website with information and prices of tickets

IT team, marketing team, ticketing manager or assistant

Strategy 2.3

Action 2.31

Develop a partnership agreement

Public relations, marketing team

Action 2.32

Contact agents and set up a meeting to propose potential partnership arrangement

Public relations, marketing team

Action 2.33

Create and edit advertisement/promotion


Action 2.34

Inject cross-promotion into public


Strategy 3.1

Action 3.11

Contact L’Oreal’s sales and marketing team and set up a way to receive an ‘x’ amount of samples

Sales and Marketing team

Action 3.12

Contact various intermediaries such as makeup counters, hair salons, fashion magazines to inform about samples

Marketing team

Action 3.13

Distribute samples to intermediaries to implement in marketing campaigns

Sales and distribution team

Strategy 3.2

Action 3.21

Develop a partnership agreement

Public Relations, marketing team

Action 3.22

Contact L’Oreal’s marketing team and set up a meeting to propose potential partnership arrangement

Public Relations, marketing team

Action 3.23

Create and edit advertisement/promotion


Action 3.24

Inject cross-promotion into public


Strategy 3.3

Action 3.31

Create a user login on facebook.com

IT Team

Action 3.32

Organise and disseminate information and media on ‘profile’ page with links to several other pages and event website

IT Team, media team, marketing team

Strategy 4.1

Action 4.11

Write a marketing plan

Marketing team

Action 4.12

Identify competitors and sponsors

Marketing team

Action 4.13

Write a sponsorship proposal and press kit

Marketing team

Action 4.14

Send sponsorship proposal and press kit to identified sponsors

Public relations, marketing team

Contact sponsors and decide on sponsorship funds

Marketing team

Marketing Budget

The marketing budget was based on a calculation of 20% of the total price of 4000 tickets sold in 2011.

Ticket cost


$79 x 4000

$316 000

$59 x 4000

$236 000

$39 x 4000

$156 000

$708 000


$236 000

Total Marketing Budget after 20%

$47 200



Description/Calculation of Costs



Advertising/publicity costs for Frankie and NOVA and FTV

Frankie: 3 x Full Page, W: 210mm x H: 275mm @ $4670 each

(Frankie, 2011)


NOVA: 20 x 30 second ads over 7 days, 6am – 6pm prime time @ $50 each

(Australia Trade, 2010)


FTV: 10 x 15 minute shows over 7 days, 7pm – 7:15pm @ $20 cost per thousand (CPM) of 50, 000

(Boone, 2009)

$10 000


$25 010


Mailing costs

5,000 x letters @ $58c each (Australia Post, 2011)


Ticketing commission

4000 tickets x 10% increase = (4400 x $79) x 0.01 commission


Printing costs

2 colour copy flyers per A4 page = 2500 x A4 pages @ $38c each (Officeworks, 2011)


Website development

Overall cost (Cmather, 2011)


Website maintenance

30 hours @ $30 per hour

(Cmather, 2011)


Advertising and promotion for cross-promotion with designers

Billboard 6m x 3m for 8 weeks @ $1500 per 4 weeks and a one off $300 installation cost ÷ 2 (halves with cross-promotion)

(GOA Billboard, 2011)



$10 371


Samples cost

20 000 samples @ $10c each


Advertising and promotion costs for cross-promotion with L’Oreal

25 x national light weight bus stop advertising @ $690 each ÷ 2 (halves with cross-promotion) (Adshel, 2011)

$8 625

Social Website

Usage is free


Distribution costs

Covered by L’Oreal



$10 625


Printing costs

20 pages x 100 booklets = 2000 colour pages @ 0.38c = $760 + 100 booklets x $1.95 each for binding = $195 (Officeworks, 2011)


Mailing costs

$1.20 x 100 booklets (Australia Post, 2011)




Overall total

$47 181

Monitoring and Evaluation

Objective 1: Measurement and evaluation mechanisms include:

Number of televised stories that use the material

Number of gained interviews

Quality and acceptance of media kit

Continuous partnerships with companies

Objective 2: Measurement and evaluation mechanisms include:

The difference in the number of ticket sales and/or revenue collected in prior year and current year

Customer database increase and loyalty

Number and quality of cross promotions

Employee satisfaction

LMFF annual review statistics

Objective 3: Measurement and evaluation mechanisms include:

Number and frequency of customer purchases/ L’Oreal annual review

Number and frequency of sample intake

Customer opinion, satisfaction, perception, and behaviours through surveys

Number, quality and success of cross promotions

Number of visits/hits/comments/’likes’/followers on facebook page

Increase in ticket sales for LMFF overall events

Objective 4: Measurement and evaluation mechanisms include:

Acceptance of proposal

Number of responses from sponsorships

Number of proposals from competitors to sponsors

Number of contracts signed with sponsorships compared to previous years, see appendix 2

Sponsorship funds increase and resource availability

Sponsor reliability, efforts made, and perception of event

Conclusion and Recommendations

The LMFF has repositioned one of its most recently popular events called ‘Fashion Full Stop: Decades of Australian Fashion’. This popularity is proven by creative director, Grant Pearce, who stated “in previous years, there hasn’t been a show on opening night, there’s just been a small presentation but this is a major theatrical show” (Merhab, 2011). This success has been assisted by creating numerous objectives, marketing strategies, and an action plan that concentrates on increasing advertising, sponsorship and sales.

The LMFF needs to continuously check and track the success of their initial objectives and modify or maintain the strategies and actions accordingly. These changes need to directly reflect the target markets and their various needs, wants and demands.


Appendix 1.

Appendix 2.

Principal and Government partners: L’oreal Paris, State Government Victoria

Major Partners: Herald Sun, David Jones, Sofitel Luxury Hotels, Pacific Brands, Centralpier Spirit of Docklands, SpecSavers, Paper Stone Scissors, Eye Media, Westfield, City of Melbourne

Event Partners: Marie Claire, 565 Lasoo, City of Stonnington, Peroni Italy, Colonial First State Global Asset Management, Woolmark, Sportsgirl

Official Product Partners: Champagne Devaux, Yering Station, Lavazza, Lexus, Raffaello, Chambord, Sanpellegrino, Toll Ipec, Nine west, kikki.K, Synergy, Steve Madden

Platinum Partners: Chadstone, Deloitte, Victoria Racing Club, Wilson Parking

Gold Partners: Middletons, Corrs Chambers Westgarth, Deutsche Bank, MyCatwalk.com, Melbourne’s GPO, Fashion Weekend Melbourne, Image Box, The Just Group, Collins 234, Nikon, QV Melbourne, Kookai

Media Partners: Artichoke, WGSN, Frankie Magazine, Cosmopolitan, Vogue Australia, 3AW 693, FASHIONTREND, FashionTV, Harper Bazaar, Grazia, Nova 100.3FM, InStyle, Madison, Avant Card, Hoyts, Yen


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