Brand Report

Brand Report

Gemella Ali-Ridha, Stephanie Griffith, Tamara Hoeflaak-Timothy, &

1

Table of Contents

STEP ONE: INRTODUCTION 3

BRIEF INTRODUCTION OR “ABOUT” SECTION 3

STEP TWO: CONDUCT SECONDARY & PRIMARY RESEARCH 4-18

BRAND LEADER ANALYSIS SECTION 4-7MARKET SHARE ANALYSIS 4SECONDARY RESEARCH 5PRIMARY RESEARCH 6-7

DIRECT COMPETITIVE ANALYSIS SECTION 8-11SUMMARY OF ALL DIRECT COMPETITORS 8-9SUMMARY OF 3 DIRECT COMPETITORS 10-11

LATEST TRENDS/NEW PRODUCT DEVELOPMENT ANALYSIS SECTION 12-13PRIMARY RESEARCH SECTION 14-19

FOCUS GROUP 14-19

STEP THREE: TARGET MARKET & POSITIONING 20-22

TARGET MARKET PROFILE SECTION 20-21POSITIONING STATEMENTS & POSITIONING MAP SECTION 22

STEP FOUR: PRODUCT/BRAND 23-34

PRODUCT DESCRIPTION SECTION 23-24PRODUCT ANALYSIS 23STRENGTHS & WEAKNESSES 24FUTURE RECOMMENDATIONS 25

BRAND NAME SELECTION SECTION 26CONCEPT TESTING SECTION 27-36

IN DEPTH INTERVIEWS 27-31SUMMARY OF FINDINGS 32-36

STEP FIVE: PRICING, PROMOTIONS, & DISTRIBUTION 37-46 PRICING ANALYSIS SECTION 37-39

PRICING ANALYSIS 37STRENGTHS & WEAKNESSES 38FUTURE RECOMMENDATIONS 39

MARKETING COMMUNICATIONS (PROMOTION) ANALYSIS SECTION 40-41MARKETING COMMUNICATIONS ANALYSIS 40-41STRENGTHS & WEAKNESSES 42FUTURE RECOMMENDATIONS 43

DISTRIBUTION (PLACE) ANALYSIS SECTION 44-48DISTRIBUTION ANALYSIS 44-46STRENGTHS & WEAKNESSES 47FUTURE RECOMMENDATIONS 48

2

BIBLIOGRAPHY 49

STEP ONE: INRTODUCTION

BRIEF INTRODUCTION OR “ABOUT” SECTION

The product category is based on skincare and cosmetics for women in their 20’s who are entering the anti-aging world, but may still be battling with younger skin concerns, such as acne. Women in their 20’s range from students, to young professionals, to women who are established in their careers, all of who juggle a hectic schedule. This product is designed to be a simple, multi-use product that eliminates confusion and enables ease of use. This product will allow women to target any aging skin concerns that begin to appear in this age bracket with the use of one simple product, ultimately providing convenience to the busy twenty-something year old woman.

3

STEP TWO: CONDUCT SECONDARY & PRIMARY RESEARCH

BRAND LEADER ANALYSIS SECTION MARKET SHARE ANALYSIS SECTION

4


BRAND LEADER ANALYSIS SECTION SECONDARY RESEARCH

OLAY REGENERIST’S MARKETING MIX:PRODUCT PRICE PROMOTION PLACE

Advanced, appearance correcting anti-aging skin care products that help regenerate skin’s appearance without drastic measures

Includes:o facial moisturizerso specialty

treatmentso facial cleansers

Contains amino-peptides, B3 complex, vitamin E, pro-vitamin B5, green tea extract, allantoin, and glycerin

Predominantly red, white, and black packaging

Prices range from approximately $10-40

Well-priced to increase availability to the mass market

Marketing communications include use of:o TV commercials (some

with celebrity endorsement)

o Magazine adso Internet – promotional

websiteo Outdoor/transit ads (i.e.

bus shelters, subways)o Social mediao Mobile marketing (i.e.

emails, mobile search)o Email marketing – “Club

Olay”o Online skin

consultationso Advergaming

(King.com’s Facebook

Drugstores (e.g. Shoppers Drug Mart)

Grocery/superstores Online (promotional

website that provides links to other transactional websites)

5

game Bubble Saga)

6


BRAND LEADER ANALYSIS SECTION PRIMARY RESEARCH

Why Olay is the Brand LeaderOlay Regenerist is anti-aging skincare’s brand leader for many reasons. For one, they have been around as a skincare company for over 60 years since the 1950’s. Brand loyalty has thus been passed down through the generations, from grandmothers to their daughters and now to their grandchildren. They have maintained their popularity over the decades by constantly adding product lines to their product mix. Olay added the Regenerist line of anti-aging skin care to its product mix in April 2003 and it has since been the highest-grossing anti-aging skincare brand on the market. After visiting Shoppers Drug Mart it is evident that Olay is the brand leader when it comes to anti-aging products, as Olay Regenerist and its other product lines dominated the shelves. Olay is a trusted company that creates products that have proven results for their claims. This is because they have an elite team of researchers and dermatologists that utilize some of the most innovative and scientifically advanced ingredients compared to other competitors. Finally, over the years they have utilized a very effective marketing strategy that has penetrated the target market thoroughly. Their successful and thorough use of advertising, mainly television commercials and magazine advertisements, has positioned the brand positively in its target markets mind.

Product Life CycleOlay as a company has been around for approximately 60 years and is in the maturity stage of the product life cycle. Most consumers are aware of Olay’s presence in the anti-aging market and Olay’s general marketing objective works to obtain brand loyalty from their customers. Despite the existence of many competitors in the market, Olay ensures that their products are innovative and constantly changing, and that they emphasize product differentiation versus the competition. Product lines are widely available in a range of distribution outlets and pricing and sales promotions are frequently used to increase sales. Olay is one of Proctor & Gamble’s highest-grossing companies with overall maximized profits.

Competitive AdvantageOlay products hold a competitive advantage in that they are relatively inexpensive, visible, convenient, and reliable. Compared to higher-end brands that are sold in department stores or at Sephora, Olay Regenerist is inexpensive in comparison. Compared to other drugstore brands sharing the shelves, Olay Regenerist products are more researched and developed, due to scientific backing and innovative ingredients, thus making it a more reliable brand. The brand is well trusted due to a long and successful history in the market. Olay’s thorough and effective use of advertising has made it a highly visible brand, which has resulted in in-demand products that are available in many distribution outlets making them convenient.

7

What Can Be Learned From OlayOur brand can learn from Olay’s marketing mix and its marketing communications such as their pricing strategy. Olay is very appropriately priced for their target market, which has contributed to its high-grossing sales. As well, they have a highly successful advertising campaign, which has effectively gained awareness for the brand and its expanding product mix. Their use of celebrity endorsement adds brand equity and contributes to their extensive brand loyalty. Olay has achieved international distribution, which has ultimately resulted in extraordinary profit margins, as they are a multi-billion dollar company. Their use of segment marketing has attracted a large and stable consumer base, as they have developed many products within different product lines and categories that meet a variety of needs for different target markets.

8


DIRECT COMPETITIVE ANALYSIS SECTION SUMMARY OF ALL DIRECT COMPETITORS

COMPETITORS DESCRIPTIONS PRICE POINT

ADVANTAGES &

SPECIALIZED FEATURES

MARKETING COMMUNICATIONS DISTRIBUTION

Olay Regenerist

Advanced, appearance correcting, anti-aging skin care products that help regenerate skin’s appearance without drastic measures

$10-40 Formulated w/ an exclusive Olay amino-peptide & B3 complex; also has vitamin E, pro-vitamin B5, green tea extract, allantoin, & glycerin

TV commercials – Celebrity endorsement

Internet Magazine ads Outdoor/Transit ads (i.e. bus shelters,

subways) Social media Mobile marketing (i.e. emails, mobile

search) Email marketing- “Club Olay” Online skin consultations Advergaming (King.com’s Facebook

game Bubble Saga)


Grocery/superstores Promotional website

provides links to other transactional websites

Neutrogena Healthy Skin

Daily moisturizers proven to reduce the signs of aging in just 4 weeks

$6.49-22.99

Vitamin C & E, lightweight, non-greasy, oil-free, UVA/UVB suncscreen


Internet Magazine ads Social media Mobile marketing (i.e. mobile search) Email marketing


Grocery/superstores Promotional &

transactional website

9

L’Oreal Derm Expertis Age Perfect

Increase resilience, minimize age spots and hydrate deeply

$15-40 Enriched with precious oils, calcium, dermo-peptide, beta hydroxyl acids, UVA/UVB sunscreen


Internet Magazine ads Social media Mobile marketing (i.e. emails, mobile

search) Email marketing Online skin consultations Online video advertising (e.g.

YouTube)


Grocery/superstores

Clinique De-aging powerhouses work to repair & help slow visible aging 24/7, as well as protecting skin from the visible effects of environmental stresses & helps skin rebuild firming natural collagen to appear smoother & more lifted

$30-70 Hypoallergenic, fragrance-free, UVA/UVB sunscreen

TV commercials (few) Internet Magazine ads Email marketing Online skin consultations “Insider’s Club”

Sephora Department stores

(e.g. The Bay, Sears) Higher-end

drugstores (e.g. Beauty Boutique @ Shoppers Drug Mart)

Promotional & Transactional website

10


DIRECT COMPETITIVE ANALYSIS SECTION SUMMARY OF 3 OTHER DIRECT COMPETITORS

COMPETITOR PRODUCT PRICE PLACE PROMOTIONNeutrogena Healthy Skin

Daily moisturizers proven to reduce the signs of aging in just 4 weeks

Lotions Eye Creams Scrubs Cleansers

$6.49-22.99 Drugstores (e.g. Shoppers Drug Mart)

Grocery/superstores Promotional & transactional

website


Internet Magazine ads Social media Mobile marketing (i.e. mobile search) Email marketing


Eye creams Serums Night creams Toners Lotions Day creams Cleansing towlettes

$15-40 Drugstores (e.g. Shoppers Drug Mart)

Grocery/superstores

TV commercials - Celebrity endorsement

Internet Magazine ads Social media Mobile marketing (i.e. emails, mobile

search) Email marketing Online skin consultations Online video advertising (e.g.

YouTube)Clinique Moisturizers

Serums Eye Creams Makeup (Foundation) Night Creams Lip Treatments

$30-70 Sephora Department stores (e.g. The

Bay, Sears) Higher-end drugstores (e.g.

Beauty Boutique @ Shoppers Drug Mart)


TV commercials (few) Internet Magazine ads Email marketing Online skin consultations “Insider’s Club”

11

Neutrogena Healthy SkinNeutrogena is a brand consisting of skincare, hair care, and cosmetics that markets its products worldwide in over 70 countries. It has been around since 1930 and is now a part of Johnson & Johnson since 1994. Neutrogena has product lines for acne, anti-aging, sun protection, bath and body, and more recently a line targeting men (Neutrogena.com).

“Neutrogena Healthy Skin is a line of dermatologist-recommended daily moisturizers that help to erase away the appearance of fine lines, blotches, and discolourations for a lifetime of healthy, beautiful skin” and are “clinically proven to reduce the signs of aging in just 4 weeks” (Neutrogena.com). Neutrogena Healthy Skin contains multi-vitamins, lightweight moisturizers, oil-free formulations, and UVA/UVB sunscreen.

L’Oreal Derm Expertis Age PerfectL’Oreal Paris is a brand consisting of skincare, colour cosmetics, hair colour, hair care, and styling products that is sold internationally in over 130 countries. Founded in 1909, the company has been around for over 100 years and has product lines for anti-aging, anti-wrinkles and dark spots, sun protection, sunless tanners, as well as products developed for men (Lorealparis.ca).

L’Oreal created their line Age Perfect specifically for women over the age of 50 as a way to reinforce mature skin’s network by “[repairing] signs of past damage and [reducing] visible signs of aging” (Lorealparis.ca). L’Oreal’s anti-aging skincare line Age Perfect contains nutri-repair complex enriched with Bio Peptides and Ceramide Fortifiers, Dermo-Peptides, and beta hydroxyl acid and has formulations for face, neck and chest, and the eye area. The products work to “brighten and smooth mature skin while reducing the appearance of age spots, fine lines, and surface wrinkles” (Lorealparis.ca).

Clinique Clinique is a manufacturer of skincare, cosmetics, fragrances, hair care, and sun protection and operates under the Estee Lauder Corporation. The company has been in business for over 40 years and is considered a premium-priced hypoallergenic skincare company that is sold in a variety of retailers across 80 countries around the globe. Clinique carries product lines targeting anti-aging, acne, redness, pores, as well as men’s skincare products (Clinique.com).

Clinique’s anti-aging skincare focuses on “[protecting] skin from the visible effects of emotional and environmental stresses” as well as “[helping] skin rebuild firming natural collagen to appear smoother, more lifted” and by reducing fine lines and wrinkles (Clinique.com). Clinique’s formulations focus on lips, eyes, and face as problem areas in order to fight the signs of aging.

12


LATEST TRENDS/NEW PRODUCT DEVELOPMENT ANALYSIS SECTION

Past generations adopted a passive, less involved way of aging while newer generations take an active, complex, and deliberate approach to anti-aging. The desire to look younger is not just restricted to the older generations, men and women starting from as young as 25 are spending time and money on skincare treatments to preserve and minimize the signs of aging. The trend in cosmetic surgery is also changing. More and more people are turning towards less invasive options, for example microdermabrasion. A more holistic approach is being taken, as people are aiming to prevent aging by coinciding it with a healthy lifestyle.

Product trends and new developments in anti-aging products include research into the yarrow plant that is purported to increase epidermal thickness and improve the appearance of wrinkles & pores. Perfluorocarbons have been looked into for their botox-like effects as they firm the skin and make wrinkles less visible. Olay’s products contain niacinamide/glycerin formula, some of the most innovative and active ingredients on the market.

New products on the market focus on product application. Skincare tools such as skin cleansing rotating brush systems, such as those made by Clarisonic and other drugstore brands, exfoliate and prep the skin and allow it to better absorb anti-aging or acne treatments. Other tools, such as Tanda’s Luxe Skin Rejuvenation Photofacial Device, harness LED light to deliver a professional skin-enhancing results. For the eye area, there has been the introduction of eye roller balls, which employs cooling-metal to massage away and de-puff under eye bags and circles.

13

The skincare and beauty world has seen another breakthrough byway of BB creams or “beauty balms” that originated in Asia as multi-use, all-in-one skincare/cosmetics. They are meant to replace traditional moisturizers, foundation, sunscreen, and serums. Both high-end and drugstore brands are currently

selling these beauty wonder products that are quickly gaining traction in the Western world.

15


PRIMARY RESEARCH SECTION

FOCUS GROUP

Conducted on: Wednesday, October 24th, 2012

Focus group members: Elizabeth (21), Laura (25), Janelle (20), Sarah (23), Monica (19), Dominika (28), Catherine (20), Tia (22)

Moderators: Jacqueline posed questions, Stephanie recorded answers

Sampling method: non-probability because the sample population was chosen from friends, co-workers, & classmates

1) Do you use anti-aging products?E: noL: yesJ: noS: noM: noD: yesC: noT: no

2) At what point are you going to or did you start to worry about aging?E: around 30L: I started worrying about aging when I was 23J: not sureS: I agree with Elizabeth, when I’m 30M: maybe when I’m 25D: yeah I’ve heard you’re supposed to start using products when you’re 25C: not really concernedT: maybe when I’m older like in my 40’s

3) How much would you be willing to spend on anti-aging products?E: maybe $20L: I’d spend over $100 if it really workedJ: $30S: $20-40M: not very muchD: same as SarahC: $50T: like $10

16

4) Do you believe that anti-aging products work?E: sort ofL: yesJ: yesS: yesM: yesD: yesC: not reallyT: no

5) What do you look for in an anti-aging product? What type of products do you use?

E: I don’t use any products yet but I would want something for sensitive skinL: I use a line I buy at SephoraJ: something all naturalS: nothing specificM: something cheapD: I use OlayC: whatever my mom usesT: no

6) Would you plan on getting cosmetic surgery in the future? Would using anti-aging products postpone that?

E: maybe when I’m much older; noL: definitely and noJ: definitely notS: I would consider it; if they workedM: noD: maybe; also if they workedC: probably not; yesT: no; yes

7) Where would you prefer to purchase anti-aging products? (Drugstores vs. Department stores)

E: drugstore L: SephoraJ: department storesS: drugstoreM: drugstoreD: Sephora or department storesC: department storesT: doesn’t matter

17

8) How do you feel about home remedies or organic/all-natural anti-aging products?

E: not sure I believe they workL: I wouldn’t botherJ: I’d give them a tryS: don’t careM: (no answer)D: I’m not sure they’d workC: (no answer) T: (no answer)

18


PRIMARY RESEARCH SECTION

FOCUS GROUP

Summary of Findings1) Do you use anti-aging products?

6 out of 8 respondents said no 2 out of 8 respondents said yes

2) At what point are you going to or did you start to worry about aging? 3 out of 8 respondents said approximately 23-25 2 out of 8 respondents said approximately 30 2 out of 8 respondents were unsure or not concerned 1 out of 8 respondents said approximately 40

3) How much would you be willing to spend on anti-aging products? 4 out of 8 respondents said $20-40 2 out of 8 respondents said $10 or less 1 out of 8 respondents said $50 1 out of 8 respondents said over $100

4) Do you believe that anti-aging products work? 5 out of 8 respondents said yes 2 out of 8 respondents said no 1 out of 8 respondents were undecided

5) What do you look for in an anti-aging product? What type of products do you use? overall factors for purchasing anti-aging products include:

I. sensitive skinII. all natural

III. inexpensiveIV. mother’s influenceV. purchased at higher-end stores, such as Sephora

VI. brand leader (Olay)

6) Would you plan on getting cosmetic surgery in the future? Would using anti-aging products postpone that? 4 out of 8 respondents said they would not get cosmetic surgery

o 2 said anti-aging products would postpone thiso 2 did not provide an answer either way if anti-aging products would

postpone this 3 out of 8 respondents would consider getting cosmetic surgery

19

o 2 said if they worked it might postpone this o 1 said anti-aging products would not postpone this

1 out of 8 respondents said they would get cosmetic surgeryo anti-aging products would not postpone this

7) Where would you prefer to purchase anti-aging products? (Drugstores vs. Department stores) 3 out of 8 respondents said drugstores 2 out of 8 respondents said exclusively department stores 1 out of 8 respondents said exclusively Sephora 1 out of 8 respondents said either department stores or Sephora 1 out of 8 respondents said it doesn’t matter

8) How do you feel about home remedies or organic/all-natural anti-aging products? 3 out of 8 respondents have negative feelings (do not believe they work or

wouldn’t bother trying them) 3 out of 8 respondents did not provide an answer or are indifferent 1 out of 8 respondents have positive feelings (would be willing to try them)

20

Summary of FindingsResults from the company’s focus group provide insight into the target markets’ perceptions regarding anti-aging. Most of the respondents questioned do not currently use anti-aging products and most will only begin to get concerned about their skin’s aging process around their mid-twenties. Most consumers would be willing to spend approximately $20-40 on an anti-aging skincare product with the majority of respondents believing that anti-aging products do show results. Factors that influence the purchase of an anti-aging product include having sensitive skin, ensuring that the product is all natural, the cost of the product, influences from their mothers, where the product is purchased, and who the brand leader is for anti-aging skincare. Half of the respondents said that they were not interested in having cosmetic surgery performed on them in the future and another half of the respondents said that high-performing anti-aging skincare products would make them consider postponing preplanned cosmetic surgery procedures. There were no major indications that the place of purchase has any impact on the success of an anti-aging skincare product, as respondents weighted their choices approximately equally amongst drugstores, departments stores, and specialty stores such as Sephora. Lastly, the majority of respondents have either negative or indifferent feelings regarding all-natural anti-aging skincare products as they felt they did not work.

21

STEP THREE: TARGET MARKET & POSITIONING

TARGET MARKET PROFILE SECTION

CATEGORIES VARIABLES BREAKDOWNGeographics Region Canada, USA, Europe

City or Census Metropolitan Area Size

250,000-1,000,000+

Density Urban, RuralClimate Any; Cold OR Warm

Demographics Age 20-29Gender FemaleFamily Size 1-3Stage in Family Life Cycle

Young single adult Young married, w/ or w/o kids

Income $30,000+Occupation Housewife

Student Sales Professional Clerical

Education High school, College, or University graduateEthnic Background

All ethnic backgrounds

Home Ownership

Owns or rents home

Psychographics Personality Beauty-conscious, compulsive, extroverted, youthful, fun, competent, confident, adventurous

Lifestyle Structured Assured Caring Busy

Behaviouristics Benefits Sought

Skincare Antiaging Youthfulness Health Beauty Confidence

Usage Rate Medium to heavy userUser Status First-time user, regular user, long-time user

22

STEP THREE: TARGET MARKET & POSITIONING

TARGET MARKET PROFILE SECTION

Target Customer

Our target customer is a 25-year-old woman named Sarah. Sarah is a beautiful, outgoing, fun-loving young woman who is also intelligent and mature. She is a part-time student, as well as works part-time and leads a very busy life. Due to all the stress in her life she is beginning to become concerned about her skin’s aging process. Sarah’s ideal anti-aging product would be a one-step, simple-to-use product that targets multiple skincare concerns. This product will replace many of the other skincare products in Sarah’s life including a daily sunscreen, antioxidant and vitamin-enriched anti-aging product, as well as a tinted moisturizer. Since Sarah is still in her mid-twenties, mild to moderate acne still continues to be an issue so she is looking for something that is

lightweight and oil-free, so as not to exacerbate her somewhat blemish-prone skin.

Sarah is very fashion- and beauty-conscious and keeps up-to-date on all of the latest cosmetic and skincare trends. She ranks feeling beautiful, youthful, and confident as top priorities in her everyday life. She is therefore not as price sensitive as some other women her age and is willing to spend a premium price on a product that will help her feel and look her best. In addition, Sarah likes to feel like she is a pampered, luxurious, and sophisticated woman who deserves the best so she tends to shop at beauty boutiques such as Sephora. She is ultimately looking for a product that makes her feel excited about anti-aging products and takes away the stigma associated with aging, as well as all the complication. Sarah wants to feel fresh faced.

23

STEP THREE: TARGET MARKET & POSITIONING POSITIONING STATEMENTS & POSITIONING MAP SECTION

FRESHFACEFreshFace Anti-aging Skincare aims to provide anti-aging at an early stage, primarily for women in their twenties, who want to prevent the signs of aging before they appear. Removing the clutter of products that target older women, FreshFace aims to motivate young women to take care of their skin and get excited about anti-aging.

POSITIONING MAP

Neutrogena

Nars

Clinique

OlderYounger

Less Expensive

More Expensive

FreshFace

Body Shop

L’Oreal

Clarins

Dior

Estee Lauder

Lancome

Murad

Vichy

24

STEP FOUR: PRODUCT/BRAND

PRODUCT DESCRIPTION SECTION PRODUCT ANALYSIS

LAYER DESCRIPTION (Clements et al. 148)

FRESHFACE ANTI-AGING SKINCARE 4-IN-1

Core Product

What the product does for the customer – the benefits derived from using the product

- Provides antioxidant and vitamin-enriched anti-aging skincare, SPF protection, and colour coverage

- Easy and transportable skincare and makeup solution

- Youthfulness- Confidence- Beauty

Actual Product

The physical good or service, including the branding, design, and features that the consumer receives

- A lightweight “Beauty Balm” (BB cream)” that offers anti-aging, lightweight moisture, SPF, and a hint of colour coverage

- Dispensed from a cylindrical pump that is small and easy to transport (30 mL)

- Comes in formulas for dry/sensitive, oily/combination, and normal skin types

- Colours ranging from light, medium and dark skin tones

Augmented Product

Additional features or benefits that accompany the product, such as a warranty, a service contract, delivery options, installation, or a website

- Skin type assessments done by professionals

- Full-money back guarantee if not satisfied with the product

- Can be ordered online at Sephora.com or on our own website at Freshfaceantiagingskincare.com

25


PRODUCT DESCRIPTION SECTION STRENGTHS & WEAKNESSES

StrengthsFreshFace Anti-aging Skincare 4-in-1 is a convenient, easy-to-use, and simple anti-aging skincare product that uses the highest quality and most innovative ingredients. It also has different formulations depending on the consumer’s skin type, making it a product that every woman can use. It provides antioxidant and vitamin-enriched anti-aging; lightweight, oil-free moisture that is non-comedogenic; SPF protection; and blendable colour coverage that is buildable. It’s cylindrical size and 30 mL volume make it an easy-to-carry product that any woman can transport in her makeup bag or clutch for a night out. By being a multi-use product, FreshFace Anti-aging Skincare 4-in-1 ultimately saves the consumer time and money because they are only using one product as opposed to four separate products.

WeaknessesDespite its obvious benefits, FreshFace Anti-aging Skincare 4-in-1 has a few weaknesses and limitations. Its pricing is set at $35 which may be seen as too high for some women who either do not feel that it is worth it to spend that money on an anti-aging skincare product or who are simply unable to afford it. FreshFace is a new brand in the skincare market, which may cause some discomfort and make some women even more hesitant to spend $35 on a new product from a new brand. Limitations involving the actual product include inadequate colour coverage for women with more problematic skin exhibiting severe acne and/or uneven skin tone and texture, as well a colour range that is too narrow to appropriately match all skin tones.

26


PRODUCT DESCRIPTION SECTION FUTURE RECOMMENDATIONS

Elements MaintainedThroughout the continuous development of FreshFace Anti-aging Skincare 4-in-1, FreshFace will continue to use the highest quality and most innovative anti-aging ingredients. FreshFace will also maintain its convenient, easy-to-use, and transportable packaging that saves consumers time and money.

New Elements RecommendedDependent on the success of FreshFace Anti-aging Skincare 4-in-1 in its introductory form of three colours and three skin types, FreshFace will introduce a larger range of colours to match more skin tones. As newer and more innovate ingredients are discovered through research and development, they will be added to FreshFace Anti-aging Skincare 4-in-1’s formula.

As FreshFace gains brand-loyal consumers, it plans to expand the product mix to include face washes, facial scrubs, facemasks, eye treatments, as well as anti-aging colour cosmetics. A line of anti-aging body treatments will also be launched under the name FreshBody that will also be available at day spas providing FreshFace and FreshBody anti-aging skincare treatments.

Lastly, a line of vitamins and other dietary and nutritional supplements will become available under the name FreshInside that will provide anti-aging and other skincare benefits from a cellular level.

27


BRAND NAME SELECTION SECTION

BRAND LOGO:

FRESH FACE™

28


CONCEPT TESTING SECTION IN DEPTH INTERVIEWS

Conducted on: Wednesday, October 31st, 2012

Questionnaire members: Elizabeth (21), Laura (25), Janelle (20), Sarah (23), Monica (19), Dominika (28), Catherine (20), Tia (22), Nicky (26), Patricia (22)

Moderators: Olympia posed questions, Gemella recorded answers

Sampling method: non-probability because the sample population was chosen from friends, co-workers, & classmates

1) What product formula most appeals to you?a. serumb. oil-free lotionc. moisturizing creamd. gele. foam

E: B) oil-free lotionL: B) oil-free lotionJ: D) gelS: B) oil-free lotionM: C) moisturizing creamD: B) oil-free lotionC: C) moisturizing creamT: B) oil-free lotionN: B) oil-free lotionP: B) oil-free lotion

2) What colour scheme would you associate with a high-end, luxury skincare product?

a. silverb. goldc. blackd. whitee. red

E: A) silverL: B) goldJ: E) redS: C) blackM: D) white

29

D: C) blackC: B) goldT: A) silverN: B) goldP: B) gold

3) Would you be willing to pay $35 for an all-in-one anti-aging skincare product? Why or why not.E: yesL: absolutelyJ: yesS: yesM: yesD: no; I wouldn’t want to spend more than $20C: yesT: for sureN: yesP: yes

4) Do FreshFace Anti-aging Skincare products sound like something that appeals to you and that you would use? Why or why not. E: yesL: yesJ: yesS: yesM: yesD: not really; I’m not concerned with aging yetC: maybe; I would want to look into it more on my ownT: sureN: yesP: yes

5) Which product format most appeals to you?a. jarb. pumpc. individual-use capsulesd. roll-on e. spray

E: A) jarL: B) pumpJ: B) pumpS: A) jarM: B) pumpD: B) pumpC: B) pump

30

T: A) jarN: E) sprayP: B) pump

6) Which of the following images most appeals to you?

A) B) C)

D) E) F)E: BL: DJ: AS: BM: BD: DC: FT: CN: FP: B

7) What size would you prefer an anti-aging makeup product to come in?a. small (25 mL)b. medium (50 mL)c. large (75 mL or more)d. varietye. other (please explain)

E: A) smallL: B) mediumJ: B) mediumS: C) largeM: A) smallD: D) varietyC: A) smallT: B) medium

31

N: A) smallP: A) small

8) Where do you most often purchase skincare and cosmetic products?a. Shoppers Drug Mart (or other drugstore)b. Sephorac. Department stored. Grocery/superstoree. Other (please explain)

E: A) Shoppers Drug MartL: A) Shoppers Drug MartJ: B) SephoraS: C) Department storeM: A) Shoppers Drug MartD: B) SephoraC: B) Sephora T: B) SephoraN: A) Shoppers Drug MartP: B) Sephora

9) Which advertising channel(s) are most likely to reach you? Please select all that apply. If choosing more than one channel, please rank in order of most effective to least effective.

a. TV commercialsi. Celebrity endorsements

ii. Infomercials b. Magazine adsc. In-store promotionsd. Social media sites

i. Facebookii. Twitter

e. Event marketingf. Promotional websites g. Other

E: Celebrity endorsements; Magazine ads; FacebookL: Social media; TV commercialsJ: TV commercials; Magazine adsS: TV commercialsM: Magazine ads D: Facebook; Magazine adsC: Celebrity endorsementsT: Event marketing; Promotional websitesN: In-store promotions; TV commercialsP: TV commercials; Magazine ads; In-store promotions

32

10)Would you be willing to sign up for email updates regarding product information, development, and upcoming events and promotions? Why or why not. E: yesL: yesJ: no; don’t check my emailS: no; I get too many emails as it isM: sureD: yesC: no; I get too much junk mail and I just end up deleting themT: yesN: yesP: yes

11)Would you be willing to participate in seminars on anti-aging from a dietary and nutritional standpoint? Why or why not. E: maybeL: probably notJ: sureS: yeah absolutelyM: yesD: no; don’t think it would make a differenceC: no; waste of timeT: yesN: yesP: maybe

33


CONCEPT TESTING SECTION SUMMARY OF FINDINGS

Summary of Findings1) What product formula most appeals to you?

a. serumb. oil-free lotionc. moisturizing creamd. gele. foam

7 out of 10 respondents said oil-free lotion 2 out of 10 respondents said moisturizing cream 1 out of 10 respondents said gel

2) What colour scheme would you associate with a high-end, luxury skincare product?

a. silverb. goldc. blackd. whitee. red

4 out of 10 respondents said gold 2 out of 10 respondents said black 2 out of 10 respondents said silver 1 out of 10 respondents said white 1 out of 10 respondents said red

3) Would you be willing to pay $35 for an all-in-one anti-aging skincare product? Why or why not. 9 out of 10 respondents said yes 1 out of 10 respondents said no

4) Do FreshFace Anti-aging Skincare products sound like something that appeals to you and that you would use? Why or why not. 8 out of 10 respondents said yes 1 out of 10 respondents said maybe/unsure 1 out of 10 respondents said no

34

5) Which product format most appeals to you?a. jarb. pumpc. individual-use capsulesd. roll-on e. spray

6 out of 10 respondents said pump 3 out of 10 respondents said jar 1 out of 10 respondents said spray

6) Which of the following images most appeals to you?

A) B) C)

D) E) F)

4 out of 10 respondents said B

2 out of 10 respondents said D

2 out of 10 respondents said F

1 out of 10 respondents said A

1 out of 10 respondents said C

35

7) What size would you prefer an anti-aging makeup product to come in?a. small (25 mL)b. medium (50 mL)c. large (75 mL or more)d. varietye. other (please explain)

5 out of 10 respondents said small 3 out of 10 respondents said medium 1 out of 10 respondents said large 1 out of 10 respondents said variety

8) Where do you most often purchase skincare and cosmetic products?a. Shoppers Drug Mart (or other drugstore)b. Sephorac. Department stored. Grocery/superstoree. Other (please explain)

5 out of 10 respondents said Sephora 4 out of 10 respondents said Shoppers Drug Mart (or other drugstore) 1 out of 10 respondents said Department store

9) Which advertising channel(s) are most likely to reach you? Please select all that apply. If choosing more than one channel, please rank in order of most effective to least effective.

a. TV commercialsi. Celebrity endorsements

ii. Infomercials b. Magazine adsc. In-store promotionsd. Social media sites

i. Facebookii. Twitter

e. Event marketingf. Promotional websites g. Other

3 out of 10 respondents ranked TV commercials as most effective 2 out of 10 respondents ranked celebrity endorsements as most effective 2 out of 10 respondents ranked Social media (Facebook) as most effective 1 out of 10 respondents ranked Event marketing as most effective 1 out of 10 respondents ranked In-store promotions as most effective 1 out of 10 respondents ranked Magazine ads as most effective

4 out of 10 respondents ranked Magazine ads as 2nd most effective

36

2 out of 10 respondents ranked TV commercials as 2nd most effective 1 out of 10 respondents ranked Promotional websites as 2nd most effective

10)Would you be willing to sign up for email updates regarding product information, development, and upcoming events and promotions? Why or why not. 7 out of 10 respondents said yes 3 out of 10 respondents said no

11)Would you be willing to participate in seminars on anti-aging from a dietary and nutritional standpoint? Why or why not. 5 out of 10 respondents said yes 3 out of 10 respondents said no 2 out of 10 respondents said maybe

37

Summary of FindingsThe results from the above questionnaire show overall support for FreshFace Anti-aging Skincare 4-in1 and proof that is appeals to consumers in our target market. The results provide indications for strategic direction and point towards an oil-free lotion, packaged in gold, using a pump product format in a cylindrical shape that is priced appropriately at $35 for a smaller size. Results show support for the intended distribution by Sephora and the use of TV commercials and magazine ads with celebrity endorsements. The majority of respondents would be willing to receive email updates regarding product development and promotions and participate in seminars on anti-aging from a dietary and nutritional perspective. Overall, results point to the success of FreshFace Anti-aging Skincare 4-in-1.

38

STEP FIVE: PRICING, PROMOTIONS, & DISTRIBUTION

PRICING ANALYSIS SECTION PRICING ANALYSIS

Pricing StrategyFreshFace Anti-aging Skincare 4-in-1’s pricing strategy is focused on the demand-oriented approach and specifically uses target pricing. By estimating a price that consumers in the target market would be willing to pay, FreshFace Anti-aging Skincare 4-in-1 is priced appropriately to promote increased sales. With target pricing, consumers will associate value with FreshFace Anti-aging Skincare as an added benefit.

Competitive Analysis COMPETITORS PRICING STRATEGY

Olay Regenerist Odd-even pricing (prices end in $0.99); Bundle pricing (offers product “systems”)


Odd-even pricing (prices end in $0.99); Bundle pricing (offers product “systems”)


Odd-even pricing (prices end in $0.99)

Clinique Price lining (products range in prices depending on the product line); Bundle pricing (offers product “systems”)

39


PRICING ANALYSIS SECTION STRENGTHS & WEAKNESSES

StrengthsThe advantages of using target pricing for FreshFace Anti-aging Skincare 4-in-1 is that the company is thinking about what a consumer is willing to spend as opposed to over- or underpricing it which could result in a loss of sales. Target pricing will result in increased sales because $35 is an appropriate price for consumers in the target market and is based on primary research. Compared to competing brands sold at Sephora, FreshFace Anti-aging Skincare 4-in-1 is priced relatively low which encourages trial and sales, especially for a new brand that consumers have little to no experience with. Consumers will therefore be willing to pay this price to “test” out the product and the brand.

WeaknessesUnfortunately, target pricing does not take into full account the costs associated with researching, developing, and manufacturing the product. As well, some women in the target market may consider the price to be too high. This may result in decreased sales as the product is not accessible to all of the target market and higher priced items are typically not purchased as frequently.

40


PRICING ANALYSIS SECTION FUTURE RECOMMENDATIONS

Elements MaintainedFreshFace Anti-aging Skincare 4-in-1 will continue to maintain its target pricing strategy so that the price reflects the target market’s price sensitivity. As brand loyalty is increased as a result of a successful launch and movement throughout the product life cycle from introduction to growth, FreshFace Anti-aging Skincare may move slightly towards prestige pricing so as to increase profits and its status in consumers’ minds.

New Elements Recommended In the future, FreshFace Anti-aging Skincare will focus on sales promotions and will create strategic alliances with other skincare brands. The company will continue to conduct market research into fair pricing perceptions that will affect the price that FreshFace Anti-aging Skincare 4-in-1 is set at.

-

41


MARKETING COMMUNICATIONS (PROMOTION) ANALYSIS SECTION MARKETING COMMUNICATIONS ANALYSIS

AdvertisingFreshFace Anti-aging Skincare 4-in-1’s marketing communications will predominantly focus on advertising as the company’s primary research revealed this to be the most effective means of communication with consumers in the target market. FreshFace Anti-aging Skincare’s advertising campaign will focus on celebrity endorsement in TV commercials and magazine advertisements in such magazines as Vogue, Cosmopolitan, Elle, People, Harper’s Bazaar, Glamour, and Flare. Magazine advertisements will mirror the level of sophistication used by the brand leader, Olay.

The ideal celebrity to endorse FreshFace Anti-aging Skincare would be Blake Lively as she is popular among women in the

target market and embraces all the qualities of FreshFace Anti-aging Skincare’s target customer, “Sarah”. As well, the company will use product placement in TV shows and movies, particularly those that star Blake Lively such as Gossip Girl.

Secondarily, FreshFace Anti-aging Skincare will use Internet advertising consisting of display advertising, online video advertising, pay-per-click advertising, and primarily social media. Sephora and Blake Lively both have Twitter accounts that will “tweet” about the launch of FreshFace Anti-aging Skincare 4-in-1. This will coincide with

42

the creation of a Facebook page where users can “like” FreshFace Anti-aging Skincare.

Public RelationsTo attract media and press attention, FreshFace Anti-aging Skincare will host two types of events. The first set of events will occur approximately two months prior to product launch in major cities in Canada, the United States, and countries across Europe where there are Sephora stores. In conjunction with Sephora, FreshFace Anti-aging Skincare will host a set of cocktail parties in-store with magazine beauty editors, well-known beauty bloggers, and prominent makeup artists and dermatologists in order for them to gain awareness and have the opportunity to “test-run” FreshFace Anti-aging Skincare 4-in-1. This will allow adequate time for magazine editors and bloggers to write about the product and pass on product awareness to consumers and women in the target market.

The second set of events will coincide with the launch of FreshFace Anti-aging Skincare 4-in-1 and will occur in waves at most major Sephora’s in most cities across Canada, the United States, and countries in Europe. Also in conjunction with Sephora, FreshFace Anti-aging Skincare will host product launch parties inviting Beauty Insiders from Sephora’s VIP loyalty program and will give consumers the chance to gain experience with the product and brand.

Sales PromotionSales promotions will be implemented in select Sephora stores whereby skincare professionals will perform skin type analysis’ that will award the customer with a coupon entitling them to 15% off their first purchase of FreshFace Anti-aging Skincare 4-in-1. This serves to entice consumers to try the product and foster brand loyalty. Prior to full-scale commercialization, samples of FreshFace Anti-aging Skincare 4-in-1 will be an option for Sephora’s VIP Beauty Insiders when redeeming their loyalty points. At its introduction, samples of FreshFace Anti-aging Skincare 4-in-1 will be distributed in major magazines that also run advertisements. After its launch, point of sale materials in the form of displays and banners will be present in all Sephora stores.

CRM Loyalty ProgramsFreshFace Anti-aging Skincare 4-in-1 is exclusively sold at Sephora stores that currently offer a VIP Beauty Insider loyalty program. Customers purchasing the product will receive points for each purchase that can be used towards promotional offers.

Direct ResponseTo attract consumers in today’s technologically focused market, FreshFace Anti-aging Skincare will use a variety of modern marketing approaches including mobile apps, as Sephora currently has an IPhone app, e-marketing, and quick response bar code scanning. Many young adults spend a dominant amount of time on their

43

phones and smartphone use is at an all time high. This provides an opportunity for direct consumer contact by way of mobile marketing.

44


MARKETING COMMUNICATIONS (PROMOTION) ANALYSIS SECTION STRENGTHS & WEAKNESSES

StrengthsThe overall advantages to the marketing communication tools used is that they are relevant in today’s modern marketplace and are therefore effective in reaching consumers in the target market. Women in their twenties are among the most technologically savvy and the above methods are proven to be effective through primary research conducted by the company. As well, these various promotional methods use integrated marketing communications (IMC) that provide coordination of a consistent promotional message for a product at every point of contact between the consumer and FreshFace Anti-aging Skincare.

WeaknessesThe disadvantages to the marketing communication tools used involve the fact that they are focused on consumers that specifically shop at Sephora which does not account for other consumers. Awareness will be limited to those consumers who do not frequent a Sephora store.

Some limitations involve the Sephora Beauty Insider loyalty program, as consumers may not use their points to redeem FreshFace Anti-aging Skincare products and instead will allow them to test out other brands and their products. As well, some consumers may not have any interest in redeeming points for sample size products, which will therefore not encourage product purchase.

Ultimately the largest weakness to FreshFace Anti-aging Skincare’s marketing communications is that they do not necessarily encourage more price-sensitive consumers who are bargain hunters to purchase FreshFace Anti-aging Skincare 4-in-1.

45


MARKETING COMMUNICATIONS (PROMOTION) ANALYSIS SECTION FUTURE RECOMMENDATIONS

Elements MaintainedFreshFace Anti-aging Skincare will continue its use of integrated marketing communications and will primarily continue to send e-marketing to their consumers. FreshFace Anti-aging Skincare will maintain its focus on its advertising campaign, as well as their public relations campaign consisting of special promotional events for new product innovations and development and for product line expansion.

New Elements Recommended Once FreshFace Anti-aging Skincare is a more established brand, the company plans to introduce more outdoor and transit advertising on billboards, bus shelters, and subways. As well, with gaining popularity and brand loyalty, the company will implement fewer sales promotions, as they will become somewhat unnecessary due to a well-established customer-base.

The major adjustment to FreshFace Anti-aging Skincare’s marketing communications will focus on its celebrity endorsements. The company’s advertising campaign will continually reassess the popularity of its spokes model to assure that they reflect the target market and hold their interest. Each spokes model will have a contract lasting approximately six months, after which it can be renewed or other celebrity spokes models may be added to the roster.

-

46


DISTRIBUTION (PLACE) ANALYSIS SECTION DISTRIBUTION ANALYSIS

COMPETITOR DISTRIBUTION DISTRIBUTION CHANNEL

DISTRIBUTION DIAGRAMS

Olay Regenerist

Sold in over 44 countries internationally

Distributed by Proctor & Gamble (North America)


Grocery/superstores Online (promotional

website that provides links to other transactional websites)



Distributed by Johnson & Johnson


Grocery/superstores Promotional &

transactional website



Distributed by the L’Oreal Group internationally


Grocery/superstores

Clinique Sold in over 80 countries internationally

Distributed by the Estée Lauder Corporation internationally

Sephora Department stores

(e.g. The Bay, Sears) Higher-end drugstores

(e.g. Beauty Boutique @ Shoppers Drug Mart)


47

Manufacturer

Wholesalers

Retailers

Consumers

Manufacturer

Wholesalers

Retailers

Consumers

Manufacturer

Wholesalers

Retailers

Consumers

Manufacturer

Wholesalers

Retailers

Consumers

Fresh Face Anti-aging Skincare’s Indirect Channel Distribution: Diagram

Producer (Fresh Face Anti-aging Skincare)

Retailers (Sephora & Online)

Consumers

48

Factors Influencing Channel SelectionAn indirect distribution channel was chosen for various reasons, which relate to market factors, product factors and company factors.

Market FactorsAn indirect distribution channel employing both online and in-store retailers was chosen because FreshFace Anti-aging Skincare’s customer base is geographically dispersed across North America (Canada and the United States) and Europe. As well, there is the potential for a large customer base which makes using Sephora as a retailer the most practical and logical. FreshFace Anti-aging Skincare is a consumer product, which warrants a retailer, as well as the fact that order sizes are not large enough for direct distribution.

Product FactorsFreshFace Anti-aging Skincare’s use of indirect distribution byway of a retailer reflects the fact that it is not a highly sophisticated product, is not a perishable product, and its unit value is low enough that it necessitates a retailer. As well, “beauty balms” as many companies prefer to call their multiuse anti-aging products, have moved from the introductory stage to the growth stage in the product life cycle and thus are becoming more mainstream and are available in more channels and retailers.

Company factorsFreshFace Anti-aging Skincare is a new brand and company that does not yet have the financial means for direct distribution. It is therefore in the company’s best interest to sell its product through the use of a well-established retailer such as Sephora. By using only a retailer as an intermediary in the indirect distribution channel, FreshFace Anti-aging Skincare maintains a level of channel control. For this reason, a wholesaler is not appropriate. The company does not wish for full control so therefore does not require direct distribution. The use of a wholesaler as an intermediary was excluded because FreshFace Anti-aging Skincare 4-in-1 is not a product that is low-cost and of low-unit value that is purchased frequently.

The company plans on using offshore distribution in Europe and the United States where technology and research and development are more advanced.

49


DISTRIBUTION (PLACE) ANALYSIS SECTION STRENGTHS & WEAKNESSES

StrengthsFreshFace Anti-aging Skincare’s use of dual distribution benefits the company by being able to reach different types of buyers by selling both in-store and online. This will ultimately translate into increased sales for the company. As well, there are lower costs, particularly start-up costs, associated with distributing through a retailer as opposed to selling directly to consumers. Most importantly, by producing offshore in Europe and the United States, FreshFace Anti-aging Skincare makes use of the latest product research and innovation that would not be available if it maintained onshore production.

WeaknessesLimitations of FreshFace Anti-aging Skincare’s distribution channel involve its focus on online shopping. Some consumers are not comfortable with making purchases online and some consumers do not have Internet access. For those consumers that choose to make purchases in-store, not all consumers live near a Sephora store, particularly those consumers that live in remote rural areas.

By using indirect distribution and offshore production and distribution, FreshFace Anti-aging Skincare has less channel control compared to the use of onshore, direct distribution. This may translate into higher costs in terms of shipping and other fixed expenses, as the cost of doing business may be higher in Europe and the United States. Offshore production and distribution also means longer lead-times associated with the difference in time zones and other communication barriers.

50


DISTRIBUTION (PLACE) ANALYSIS SECTION FUTURE RECOMMENDATIONS

Elements MaintainedPrimary research indicates that this is the most effective type of distribution in reaching the target market. FreshFace Anti-aging Skincare will continue to sell its products at Sephora stores and online at Sephora.com and on its own website Freshfaceantiagingskincare.com.

New Elements RecommendedDependent on its initial success, the company plans to expand its distribution for sale in Shoppers Drug Mart Beauty Boutique as well as other major department stores worldwide. With increased sales come increased profits that can be used to invest in onshore production and distribution in North America in order to gain more channel control.

51

BIBLIGRAPHY

“Amazon.com: Olay Regenerist Advanced Anti-Aging Eye Anti-Aging Roller, 0.2 Ounce: Beauty.” Amazon.com: Online Shopping for Electronics, Apparel, Computers, Books, DVDS & more. N.p., n.d. Web. 7 Nov. 2012. <http://www.amazon.com/Olay-Regenerist-Advanced- Anti-Aging-Roller/dp/B0028K3J9O>.

"Anti-aging ." L'oreal Paris. ant-aging cream, n.d. Web. 7 Nov. 2012. <www.lorealparisusa.com/_us/_en/default.aspx#/?page=top{userdata//d+d//|diagnostic|main:brandpage:advancedrevitalift

"Clinique - Repairwear Anti-Aging Makeup SPF 15 customer reviews - product reviews - read top consumer ratings." Clinique - customer reviews - product reviews - read top consumer ratings. N.p., n.d. Web. 7 Nov. 2012. <http://reviews.clinique.com/3813/5967/clinique-repairwear-anti-aging-makeup-spf-15-reviews/reviews.htm>.

"Fat Injections - Visage Clinic." Toronto Cosmetic Surgeons | Visage Clinic | Plastic Surgery - Visage Clinic. N.p., n.d. Web. 7 Nov. 2012. <http://www.visageclinic.com/fat_injections-39.html>.

Christina Clements, Kerin, Roger A., Steven W. Hartley, William Rudelius, and Harvey Skolnick. The Core. Third Canadian ed. Canada: Leanna MacLean, 2005. Print.

Lazich, Robert S.. Market Share Report HF 3001 M37 (Ref) Vol 2. Farmington Hills, MI: Gale, 2009.

"Neutrogena - Healthy Skin Anti-Wrinkle Cream - Night ." Skincare, Acne Treatments, Anti-Aging, Sunscreen | Neutrogena. N.p., n.d. Web. 7 Nov. 2012. <http://www.neutrogena.com/product/healthy+skin+anti-wrinkle+cream+-+night.do

52

Brand Report

Documents

Transcript of Brand Report