analysis on kiehl's marketing & execution
TRANSCRIPT
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Analysis onKiehl’s MarketingStrategy& Execution
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1. What is Kiehls’s
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© Miramax/Touchstone Pictures
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John Kiehl
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Irving Morse
EstablishedKiehl’s as a brand
First Buyer
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Natural Ingredient
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Aaron Morse
The Iconoclast
SolidifiedKiehl’s Differences
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Unique Stores
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Samples
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First Men Skin Products
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Jami Morse
Clever Marketer
Get Closers toCustomers
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Customized Services
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Community
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acquired byL’Oréal in 2000
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2. Kiehl’s in Madrid
since 2006
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5C Analysis – Customers “Overview of Madrileños”
1.62
M
3.23
M
.80
M
MadridBarcelona
Valencia
Population Gender & Age
W M More than 40% are
30s – 50s50% 50%
GDP per Capita & Jobs
€31,00035% higher thannational average
16.5%of all jobs in
Spainallocated in Madrid
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5C Analysis – Customers on “Beauty Products”
• Top 3 preferred places to buy are- supermarkets(62%)- beauty care stores(54%)- department stores(42%)- online stores(only 4%) • Main drivers of purchase is
expected benefits, price and brand
• The most renowned brands areL’Oréal, Nivea, Dove, Clinique, andLancôme
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5C Analysis – CompetitorsHigh Price
Natural Ingredient
s
Low Price
ScientificMethods
KIEHL’S
CLARINSL’OCCITANE
BIOTHERMCLINIQUE
AVEDA
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5C Analysis – Company
L’OREAL FAMILY
Expand Global
LONG HISTORY
164 Years in Beauty Carehaving being founded in 1851 in New York as a small pharmacy selling homeopathic and herbal medicinal as well as over-the-counter drugs
In 2000, Kiehl’s has been completely acquired by the
global beauty care giant L’Oréal. The acquisition was
seen as a vehicle
HIGH QUALITY
Products & Servicesthe company has successfully entered the men beauty care sector, in which it has quickly gained a distinctive reputation for its high-quality products and excellent service.
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5C Analysis – Collaborators
9 stores out of 11in Madrid are located
in El Corte Inglés
Fashion magazines & bloggersto influence customers
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5C Analysis – Context
4.46
B
2011 2012 2013
4.20
B
4.05
B
The Cosmetic and Toiletries
Market in Spain
*Source: http://www.statista.com
Population Pyramid2013 and 2023,
Spain
*Source: Instituto Nacional de Estadistica
Getting older
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5C Analysis – Context
Unemployment Ratein Madrid & Spain
Average Payrollsin Madrid & Spain
Source: Madrid Statistic Institute and Ministry of Economy
In recovery trend…
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SWOT Analysis
• Low Brand Awareness• Unclear brand positioning• Limited distribution• No advertising
• Hipster and metrosexualculture
• Men grooming• Loyal customers• Word-of-mouth
• Over-crowded market• Competitors’ high spending
on advertising• Poor presence outside big
cities
S OW T
• Medical knowledge• Heritage• Low price within
premium segment• Owned by L’Oréal
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Target
DEMOGRAPHICS
• Young adults & 30~45 years old• A bit more attention to men• Middle-to-upper class• Living in big cities
PSYCHOGRAPHICS
• Open-minded• Professional & Travellers• Care of their appearance and well-
being• Close to hipster and metrosexual
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Positioning
• Pharmaceutical experience
• More than 150 years of expertise and tradition
• Customized service
Points of difference Points of parity
• Natural ingredients
• Effective treatments.
“To young adult, affluent global citizens, Kiehl’s is the only beauty care premium brand that solves every specific skin and hair need because of its centuries-old natural pharmaceutical experience and its service personalized to customers’ necessities.”
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What the productdoes for me
How I would describe the product
How the brand makes me look
How the brand makes me feel
Facts and symbols
Brand Personality
Core Brand Promise
American roots
Foundedin 1851
Origins in New York
Owned by L’Oréal
Natural
Kiehl’s provides customized natural
solution to skin and hair needs
Skeleton Mr. Bones
Harley Davidson
Apothecary legacy
Customized
Effective
Premium
Daily Routine
Global
Modern
PharmaceuticalHerbal
Personalized
Skin Check
Grooming
Stylish
Satisfied
Skin and hairconcerns solved
Relieved
Nice
Charming
Helpful
Customer-centric
Joking
Innovative
Environmentally safe
Proud
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3. How Kiehl’s Doing in Madrid?
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4P MIX - Product
“ingredients are the single most important component”
Natural Ingredients
Package DesignUnlike other luxury skincare brands, they are
• selling in bottles with very basic shape & color
• are crowded with contentsthose texts are usually very long and are written with a basic font, using different font sizes and effects (bold, underlined), which make them clumsy and difficult to read, as well as similar to pharmaceutical products and 19th century medicinal
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Kiehl’s Clarins
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Customers on Products
• 50% are familiar with the brand
• People recognized Kiehl’s for- pharmaceutical look (23%)- natural ingredient (17%)- quality (17%)
• Most purchased items arecleansers, moisturizers and shaving products
• Kiehl’s products are appreciated fortheir efficacy and natural ingredient
Customer research
#1
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4P MIX - Price
• Higher than mass-market ones.
• From the survey, people considered the price of Kiehl’s asnormal or slightly expensive
Price Rangeof basic products
€9.5~ 60
€8~ 154
€9~ 106
• Priced at the low level of the premium beauty care segment
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4P MIX – Points of Sales
Flagship Store Department Store Online Store
Supermarket Hypermarket Beauty Shop
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4P MIX – Points of SalesFlagship
StoreDepartment
Store
• No Test• No Samples
(before we requested)
• No Harley Davidson(in some stores)
• No Friendship• Not welcomed
We got every things
we expected!!
=
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4P MIX – Promotions
Unlike other luxury skincare brands,
• We don’t use celebrities to endorse us
• We’re reluctant to advertise on TVs, newspapers, of fashion magazines,
We are more focusing on social mediaand on word-of-mouth.
WE’RE SODIFFERENT!
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The page is targeted at women
from 25 to 35 years old
Our FB communication is
personalized, informal,
addressed to the customer
directly, and localized!
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Customers on Communication
• Main sources of information aboutKiehl’s
(Including Expatriates)-Kiehl’s stores-Magazines-A word-of-mouth
(Spaniards only)-A word-of-mouth-Magazines-Beauty care professionals-The last response was Kiehl’s stores
Customer research
#2
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4. Problems & Recommendations
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Problem #1Inconsistency of customer in-store experiences
Excellent Service
Less than
Expected
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Problem #1Inconsistency of customer in-store experiences
Two happycustomers
Nine unhappy
customers
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Problem #2 Inconsistency in Branding
Website SocialMedia Store
Hyper-modern Modern19th centuryAmerican apothecary
Discrepancy in key images from different channels
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Problem #3 Low Brand Awareness
Unsatisfied in-store experience
Inconsistency in brand
communication
No word-of-mouth effect Dilution of the brand
Low Brand Awareness!
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Recommendations1. Improve consistency of
customer in-store experiences
• Provide additional training for in-store consultants in El Corte Ingles
• Implement a “secret shopper” program
• Ask some customers to fill out electronic surveys after an in-store experience
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Recommendations2. Increase consistency
of website branding• Make website images consistent with the
brand’s intended positioning
3. Increase brand awareness
• Advertise more, especially in specialized magazines
• Sponsor non-controversial venues and events