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A Pre-Case Study Xen Chalmet Thomas Lupton Johann Fromont
OUTLINE
u MARKET ANALYSIS I. MARKET TRENDS II. COMPETITORS’ POSITIONING & TARGETS III. KIEHL’S CONSUMER IV. SWOT ANALYSIS
u BRANDING STRATEGY I. THE OPPORTUNITIES II. THE PRODUCT III. THE MARKETING STRATEGY
OUTLINE
u MARKET ANALYSIS I. MARKET TRENDS II. COMPETITORS’ POSITIONING & TARGETS III. KIEHL’S CONSUMER IV. SWOT ANALYSIS
u BRANDING STRATEGY I. THE OPPORTUNITIES II. THE PRODUCT III. THE MARKETING STRATEGY
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2009 2010 2011 2012
World
The global men’s skincare market has been growing over the past few years!
The men’s skin care market’s global sales reached a value of $2.7Bn in 2012
The future remains bright as the global men’s skincare market is expected to continue growing for the 2012-2017 period!
Asia Pacific!$1.6Bn!
West. Eu.!$0.66Bn!
Value of sales by markets in 2012 ($Bn)
North Am.!$0.26Bn!
Latin Am.!$0.06Bn!
Africa/Mid-E!$0.05Bn!
East. Eu.!$0.05Bn!
Australasia!$0.03Bn!
Asia Pacific is strongly growing!
Western Europe is stagnating!
North America is slightly growing!
Premium 33%
Mass 67%
Market shares between Premium and Mass markets in 2007 (in %)
Premium 30%
Mass 70%
Market shares between Premium and Mass markets in 2012 (in %)
In Eastern Europe and North America, however, the Premium market is gaining market shares
Asia Pacific is the 1st Premium market !
Western Europe is 2nd!
North America comes 3rd!
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20
40
60
2003 2008
Men’s grooming distribution 2003/2008 (in %)
Supermarkets! Pharmacies!Beauty spec.! Dept. stores!
Supermarkets is the first distribution!
channel ≈ 42%
Men’s grooming products !distribution channels in 2008
Parapharmacies and pharmacies account for !
≈ 18%
Internet ≈ 1%
Department stores !≈ 5%
Beauty specialists!≈ 8%
Others ≈ 26%
OUTLINE
u MARKET ANALYSIS I. MARKET TRENDS II. COMPETITORS’ POSITIONING & TARGETS III. KIEHL’S CONSUMER IV. SWOT ANALYSIS
u BRANDING STRATEGY I. THE OPPORTUNITIES II. THE PRODUCT III. THE MARKETING STRATEGY
General Competitor Analysis!Less exclusive!Many distribution channels !Use all means of advertising!All have male orientated range of products!Distribute all over the world!
Clinique
Biotherm
v Simple approach!v No franchises!v Scores a higher prestige rating in 6/8 countries!v Many distribution and advertising channels!v Consumer awareness!
v Multiple franchises!v Multiple digital strategies tailored for men!v Ranked top for prestige in 5/8 countries!v Consumer awareness!
Characteristics of Kiehl’s direct competitors
Social media!Featured stores!
W.O.M!
Kiehl’s Characteristics!
OUTLINE
u MARKET ANALYSIS I. MARKET TRENDS II. COMPETITORS’ POSITIONING & TARGETS III. KIEHL’S CONSUMER IV. SWOT ANALYSIS
u BRANDING STRATEGY I. THE OPPORTUNITIES II. THE PRODUCT III. THE MARKETING STRATEGY
Men represent 20% of Kiehl’s total business!
Innovative persons!Proactive
prof.!
Prudent practicals!
v Cleanliness v Clean cut v Professional look v Feeling good v Attracting Kiehl’s Men Segmentation
(generated revenue)!
Just a third of men use facial skincare products!
Men mainly use the same 4 products repeatedly !
16%
12%
9% 9%
Neutrogena! Nivea! Dove! Noxzema!
Men’s brand awareness in facial skincare!
L’Oreal brands lack a distinct image among men!
About 30% of men are influenced by others!
World!
Asia!
Europe!
Region Concerns
Shaving problems is an issue everywhere!
Greasy and sweaty faces!
Bright smile, neat face, and signs of fatigue!
OUTLINE
u MARKET ANALYSIS I. MARKET TRENDS II. COMPETITORS’ POSITIONING & TARGETS III. KIEHL’S CONSUMER IV. SWOT ANALYSIS
u BRANDING STRATEGY I. THE OPPORTUNITIES II. THE PRODUCT III. THE MARKETING STRATEGY
Rich history – Founded in 1851
Use of natural ingredients
Strong parent company – L’Oreal
Excellent customer service & highly trained staff
Solid cult following
Innovative brand
Low brand awareness
Company policy – don’t pay for advertising
Products can be easily copied
Expand in the men’s skincare market
Sustainable (ingredients, packaging..)
Use the unique and hip brand
Emerging markets (especially BRIC)
Expand distribution channels
Strong competition
Low risk in switching brands
Companies using mass media
Similar products in the market
Failing economies
Growth of the mass market
OUTLINE
u MARKET ANALYSIS I. MARKET TRENDS II. COMPETITORS’ POSITIONING & TARGETS III. KIEHL’S CONSUMER IV. SWOT ANALYSIS
u BRANDING STRATEGY I. THE OPPORTUNITIES II. THE PRODUCT III. THE MARKETING STRATEGY
Expand in the men’s skincare market
Sustainable (ingredients, packaging..)
Use the unique and hip brand
Emerging markets (especially BRIC)
Expand distribution channels
What we think would benefit Kiehl’s
v Choosing a skincare product v Promoting Kiehl’s strengths in
sustainability, creativity, and quality v Creating a “male image” for the brand v Differentiating the brand, while
keeping Kiehl’s values v Targeting the emerging markets v Targeting the “trendy professional”
Facial Fuel Energizing Tonic for Men
Our choice
OUTLINE
u MARKET ANALYSIS I. MARKET TRENDS II. COMPETITORS’ POSITIONING & TARGETS III. KIEHL’S CONSUMER IV. SWOT ANALYSIS
u BRANDING STRATEGY I. THE OPPORTUNITIES II. THE PRODUCT III. THE MARKETING STRATEGY
Product
Price Promotion
Place v New packaging v High customer satisfaction v Using natural ingredients v Sustainable/ethical way of
producing v Innovative product
v Keeping a price that witnesses the premium quality of the product
v New In-store strategy v Targeting airports’ duty
free zones as a new channel of distribution
v Social media v Kiehl’s epic journey v Kiehl’s information app
OUTLINE
u MARKET ANALYSIS I. MARKET TRENDS II. COMPETITORS’ POSITIONING & TARGETS III. KIEHL’S CONSUMER IV. SWOT ANALYSIS
u BRANDING STRATEGY I. THE OPPORTUNITIES II. THE PRODUCT III. THE MARKETING STRATEGY
Kiehl’s Epic Journey!
Kiehl’s rider will follow this route and accomplish good deeds at every destination !
Promotion!v Coming soon countdown!v Build buzz via social media!v Provide snippet of information
about the ride everyday 30 days prior to the event!
v Kiehl’s rider will advertise the product and the brand!
v Possibility to follow the ride on the net!
Kiehl’s Epic Journey from India to Thailand!
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2
3
1 Volunteering to preserve the forest in Lucknow!
Raising Kiehl’s brand awareness in Kolkata!
2
H e l p i n g c h i l d re n i n Bangkok!
3
Kiehl’s In-store experience!
Highlight video of “Kiehl’s epic journey”!Map of “Kiehl’s
epic journey” route!
Earn loyalty points by bringing back empty Kiehl’s bottles !
Kiehl’s information app*!
*Kiehl’s information app!
Thank you for your attention!!
