L'Occitane Group: Conquering Hair Care Through Data-Driven Niche Marketing

 

Campaign Summary

L'Occitane, a challenger brand in the hair care market, utilized RED's proprietary data platform Lingxi to identify a strategic opportunity in the dry shampoo niche. By implementing a three-pronged approach involving search, content, and influencer strategies, L'Occitane successfully promoted both its shampoo and dry shampoo products. This innovative campaign resulted in increased brand penetration, improved product rankings, and enhanced cost efficiency.

Strategy

Objective

L'Occitane aimed to gain market share in China's competitive hair care category, where it held only 0.2 percent market share compared to the combined 53 percent held by the top three players. The brand sought to increase its social voice on RED, where its search volume ranked 20th with a 4.07 percent penetration rate.

Context

The campaign focused on RED, a key platform for beauty and personal care brands, which had recently launched its proprietary data platform Lingxi. RED was chosen strategically due to its high concentration of female users and hair care product searchers.

Target Audience

L'Occitane targeted females aged 18-35 with high purchasing power in first-tier and new first-tier cities in China, aligning with the 62 percent of premium shampoo consumers who are female.

Creative and Media Strategy

Analysis of RED's hair care category data revealed that while shampoo was highly competitive, dry shampoo was a fast-growing niche with high audience overlap. Keywords "voluminous" and "oil control" were top searches for both products. L'Occitane decided to leverage the dry shampoo space to promote both its shampoo and dry shampoo products simultaneously.

Execution/Use of Media

The campaign employed a three-pronged strategy:

  • Search Strategy. Shifted keyword bidding to dry shampoo for "voluminous" and "oil control" terms, using broad match to maximize visibility.
  • Content Strategy. Featured both shampoo and dry shampoo in all content, focusing on oil control and voluminous hairstyling benefits.
  • Influencer Strategy. Collaborated with relevant influencers to promote both products together, capitalizing on RED's influencer-oriented platform.

Business Impact

The campaign achieved significant results:

  • Brand penetration in the hair care category on RED increased
    • L'Occitane brand search volume rose by 64 percent, climbing eight spots
    • Share of content consumption increased by 225 percent
  • L'Occitane shampoo product ranking on RED improved
    • Share of search impressions increased 42 percent, climbing 10 spots to enter RED's Top 60 shampoo products
  • Programmatic campaign cost efficiency improved
    • Cost-per-click of search ads decreased 38 percent
    • Dual product content delivered 40 percent lower cost-per-engagement compared to single product content
  • L'Occitane dominated the dry shampoo sub-category
    • Search volume increased by more than 18 times, climbing 19 spot to become a top three dry shampoo product

The campaign's innovative use of RED's new data platform led to its selection as a top three finalist in RED's case competition. Consumer reception was positive, with many users expressing appreciation for the brand's comprehensive approach to addressing their hair care needs.


Categories: | Industries: | Objectives: Data Insights/Contextual Marketing | Awards: X Global Finalist