4. Industry
Overview
• Total
retail
sales
of
beauty
products
will
reach
$37
billion
in
2013.
3%
growth
from
2012)
• The
market
is
expected
to
reach
$40
in
2018.
• Market
factors
include
the
growth
of
female
populaGons
in
the
next
5
years
and
impact
of
increase
in
online
and
mobile
shopping.
Source:
online
beauty
research
2013
5. Industry
Overview
• Income
and
accessibility
impact
the
online
buying
decision
of
the
shopper.
• Access
to
broadband
internet
become
higher
as
income
rises
(
53%
in
household
earning
<$25K
VS.
77%
from
household
earning
$150K+).
7. Consumer
Trend
Consumers
adtudes
towards
shopping
for
beauty
product
online
(
top
3)
• Gives
them
access
to
hard
to
find
products
• Saves
Gme
• More
convenient
Source:
online
beauty
research
2013
8. Consumer
Trend
Source:
online
beauty
research
2013
Why
Consumers
do
not
buy
beauty
product
online
• Prefer
in-‐store
experience
• Shipping
fee
• Afraid
to
pick
the
wrong
product
• Return
hassle
9. Consumer
Trend
Source:
online
beauty
research
2013
How
consumers
get
informaGon
about
beauty
products (top 3 sources)
Friends/Family
Visit
Stores
and
test
product*
Online
reviews
10. Consumer
Trend
Source:
Mintel online
beauty
research
2013
Online
informaGon
source
for
beauty
product:
• Online
review
• Brand’s
website
• Retailer’s
website
• Beauty
blog
11. Consumer
Trend
Source:
online
beauty
research
2013
Beauty
shopper
behaviors:
• seek
informaGon
from
online
sources
(online
reviews
/
beauty)
blogs)
are
more
likely
to
purchase
online.
• Friends
and
family
are
powerful
trusted
sources/
influencers.
• like
to
try
something
new
and
make
purchase
on
impulse.
• See
brand
website
design
as
perceived
value
of
products.
• SGll
want
to
try
products
before
they
buy
• Connect
with
brands
and
request
samples
through
social
networks
Consumer
find
easier
to
make
purchase
if
online
store:
• Help
selecGng
the
right
products
• Have
interacGve
features
like
live
chat.
• Recommend
addiGonal
purchases
or
offer
free
gims
once
reach
a
certain
spending
level
13. CompeGGve
Environment
• The
market
is
highly
compeGGve
due
to
the
high
number
of
brands
in
the
market
• However,
there
is
an
opportunity
for
Red
Flower
to
highlight
its
organic
ingredients
to
differenGate
from
other
brands
in
the
clu2ers.
• CompeGtors
brand
based
on
product
offer/
categories
and
premium
price
range
Premium
& High-pricedMedium-priced
Imported
scents
brands
&
Expertise
International Reputation/ premium
natural but not organic-oriented
Skin-‐care
focused.
No
scents
products
Spa
and
bouGque
concept
with
natural
ingredients
Luxurious
Organics
Unique
ingredients
15. SWOT
Analysis
Strengths
- High
quality
product
&
unique
ingredients
- Exclusive
quality
control
- Luxurious
partnership/distribuGon
channels
(
Hotel
&
spa)
- Top
ranked
organic
search
- Open-‐minded
management
- Brick-‐and-‐mortar
store
in
NYC
Weaknesses
- Low
Awareness
-
Limited
physical
showroom
- Unclear/confusing
brand
posiGoning/image
- Inconsistent
brand
image
in
different
online
plaqorms
(
partner
websites/social
media)
- Website
navigaGon
is
not
user-‐friendly
- Less
engagement/
incenGve
to
engage
Threats
- High
compeGGon
in
the
market,
especially
from
low-‐
priced
products
- Trust
and
security
issues
for
online
purchase
- Increasing
cost
of
organic
ingredients
OpportuniGes
- More
partnership
with
like-‐minded
brands
- Future
product
extension
(i.e.
men-‐specific
products,
teenager
and
anG-‐aging
product)
- Future
market
extension
(i.e.
Asia
&
Europe)
-
Mobile
plaqorm
to
support
increased
mobile
shopping
17. SituaGonal
Analysis:
Key
issues
2.
Confusing
website
layout/design
• Not
user-‐friendly
• Hard
to
navigate/
find
the
products
1.
Unclear
brand
image
• Online
and
physical
store
do
not
reflect
luxurious
lifestyle
• Inconsistent
brand
image
3.
Low
awareness
• Known
in
niche
consumers
(
i.e.
those
who
have
experience
with
products
in
hotels
or
spa)
• Limited
experienGal
physical
store
4.
Low
engagement
• Less
incenGve
to
engage
and
share
• Less
acGve
interacGon
with
consumers
• No
user-‐friendly
mobile
web
• Content
is
not
inviGng
to
interact/
share
Source:
Consumers
interview
(
15
people),
company
informa@on
by
partner,
news
and
business
informa@on
analysis
18. 18
Key
issue:Branding
• Website
Presence:
Inconsistent
in
different
website
(Barneys
VS.
Red
flower)
• Store
reflects
organic
concepts,
yet
less
luxurious
and
lifestyle.
Content
is
• Una2racGve
• Low
incenGve
• Low
engagement
Pushing
Strategy
19. Consumer
feedback
about
branding
• How
do
consumers
feel
about
the
brand?
Pricey
Organic
Friendly/Warm
Natural
Unique
Health
product
20. Key
issue:
Website
• Overwhelming
contents
• Too
clu2ering
with
small
pictures
and
text.
• Not
eye-‐catching
• No
lifestyle-‐related
contents/images
• Too
colorful
• Hard
to
read
21. Consumer
feedback
about
website
• How
do
consumers
think
about
the
brand?
Source:
Consumers
interview
(
15
people),
company
informa@on
by
partner,
news
and
business
informa@on
analysis
Confusing
Rich
informa,on
Too
colorful
RepeGGve
Floral
Wordy
22. Facebook
Twi2er
Instagram
Foursquare
Likes/Followers/
Fans
7,046
1,342
738
TAT/Following
244
1,104
311
Check-‐in
160
193
• Online
engagement
acGviGes
is
relaGvely
low
Facebook
TwiIer
Instagram
Posts
per
day
3-‐4
0-‐3
1
Likes
per
Post
IntroducGon
(Company/AcGviGes/
Products)
0-‐7
0-‐5
Share
(Scenery/Quote)
12-‐27
0-‐5
11-‐40
Key
issue:
Engagement
23. Key
issue:
Engagement
More
photo
on
product
buying
on
mobile
• No
mobile
web
plaqorm
for
mobile
device
• Similar
design
as
in
current
website
• Too
clu2ers
and
hard
to
navigate
on
mobile
27. Strategic
RecommendaGon
BRAND
STRATEGY
• Perceived
image:
Luxurious
organic
lifestyle
product
• Brand
image/message
must
be
consistent
in
all
channels
CAMPAIGN
OBJECTIVES:
• Enhance
brand
image
• Increase
brand
awareness
&
acquire
new
customers
• Increase
engagement
&
Sales
• Retain
customers
ONLINE
• Brand
website
re-‐design
strategy
• Product
offer
strategy
(Personalized/limited/
bundle)
• Social
media
strategy
• SEO/SEM
strategy
• Mobile
plaqorm
strategy
• Loyalty
program
(integrated
with
offline)
OFFLINE
• Event
• sponsorship
• Partnership
• Print
ad
with
QR
codes
• Give
away
sample
• Loyalty
program
(integrated
with
online)
28. Strategic
recommendaGon
BRAND
STRATEGY
• Perceived
image:
Luxurious
organic
lifestyle
product
• Brand
image/message
must
be
consistent
in
all
channels
ONLINE
• Brand
website
re-‐design
strategy
• Product
offer
strategy
(Personalized/limited/
bundle/Best
deal
promoGon
of
the
day)
• Social
media
strategy
• SEO/SEM
strategy
• Mobile
plaqorm
strategy
• Loyalty
program
(integrated
with
offline)
OFFLINE
• Event
• Sponsorship
• Partnership
• Print
ad
with
QR
codes
• Give
away
sample
• Loyalty
program
(integrated
with
online)
CAMPAIGN
OBJECTIVES:
• Enhance
brand
image
• Increase
brand
awareness
&
acquire
new
customers
• Increase
engagement
&
Sales
• Retain
customers
29. Website
Re-‐design
Strategy
DESIGN:
Re-‐design
layout
of
the
website.
• Improve
the
design
by
endorsing
more
lifestyle
elements
to
enhance
and
strengthen
brand
image
(
add
in
target
lifestyle
visuals)
• Simple
design/
simple
categorizaGon/
simple
navigaGon
INTERACTIVITY:
Add
more
interac,ve
features
in
the
website
for
more
engagement
• Zoom-‐in/Zoom
out,
360
degree
view
• Life
chat
for
purchasing
assistance
• CustomizaGon
feature
• Personal
TesGng
&
product
suggesGon
• Product
sampling
CONTENT:
Improve
content
by
adding
in
lifestyle
• Lifestyle
oriented
product
detail,
i.e.
injecGng
usage
occasion
in
daily
life
• Add
more
interesGng
content
in
VDO
format
• Integrate
and
link
websites
with
all
exisGng
social
media
plaqorm
and
encourage
sharing
• Red
flower’s
home
try-‐on
program
30. • Simple
&
neat
• Reflect
luxurious
organic
lifestyle
• Integrated
with
all
exisGng
social
media
• Live
chat
for
personal
assistance
and
interacGon
Website
Design
–
Look
31. Website
Design
–
Look
Style
references
:
Inject
more
lifestyle
elements
in
new
layout
design
32. Website
Design
–
Content
• Product
Sugges,on
ObjecGve:
Create
engagement,
collect
data
and
increase
sales
Prospect/exisGng
customers
register
and
do
online
test
to
get
recommendaGon
for
products
33. Website
Design
–
Content
• Amer
finishing
the
test,
customer
is
encouraged
to
share
result
on
social
media
plaqorm
in
order
to
order
2
samples
of
the
personalized
products
from
online
home
try-‐on
(free
shipping)
• Consumers
feel
understood
and
feel
red
flower
trustworthy
34. SEM/SEO
Google
keyword
search
Key
analysis:
• Organic
keyword
is
not
as
popular
as
"Make
up”
• Product
category
such
as
Shampoo,
EssenGal
Oil,
LoGon
are
popular
keywords.
(Ready
to
purchase
stage)
• Product
ingredient
search
is
gedng
popular
Source:
Good
ad
words
research
35. Key
words
Monthly
View
Compe,,on
Bid
costs
Beauty
60K
Low
$1.75
Shampoo
22K
High
$5.62
EssenGal
oils
110K
High
$1.34
LoGon
15K
Medium
$4
Candles
50K
High
$0.99
SEM/SEO
Google
keyword
search
Keyword
suggesGon:
• Beauty
• EssenGal
oils
• Scented
Candles
• Product
category
key
words,
i.e.
Shampoo,
loGon
• Product
ingredient
related
words
i.e.Berries
Beauty
Source:
Good
ad
words
research
36. Product
Offer
Strategy
–
Limited-‐ediGon
• ObjecGve:
Increase
web
engagement
and
sales
• Limited
ediGon
product
by
occasion,
i.e.
mother’s
day,
Christmas,
available
only
for
online
order
• Limited
Gming
to
create
sense
of
urgency
37. Product
Offer
Strategy
–
Bundled
product
• ObjecGve:
Increase
units/order
and
revenue/transacGon
• Bundled
product
for
special
price
available
only
online
(i.e.
seasonal
gim
set)
• Bundled
product
could
be
both
within
the
same
or
cross
categories.
38. Social
Media
Strategy
–
Content
• ObjecGve:
Increase
brand
awareness
and
engagement
• Create
two-‐way
communicaGon
conversaGon
and
regularly
respond
on
social
media
• Include
direct
link
to
buy
product
in
social
media
(
Facebook
&
Instagram)
• Give
incenGve
for
sharing
in
social
media,
i.e.
free
sample,
discount
code
Which
scent
is
your
favorite?
Share
your
favorite
scent
and
tell
us
why
under
the
post
and
win
the
whole
set
of
them.
How
much
do
you
love
us?
Share
everyone
your
love
to
Red
Flower
with
a
photo
of
you
and
our
product
and
#redflowerny
to
win
free
sample.
39. Alexandra
Suzanne
Greenawalt:
A
personal
stylist
and
fashion
expert
in
New
York
Mike
Khakee:
Fashion
blogger
Chris,me
Amorose
NYC
Lifestyle
Blogger
Social
Media
Strategy
–
Endorsement
• Endorse
lifestyle
oriented
influencers,
i.e.
lifestyle
and
fashion
bloggers,
in
social
media
and
also
product
in
their
blogs.
• Selected
lifestyle
influencers
must
have
significant
number
of
fanbase
and
reflect
brand
image
and
target
interests.
40. Social
Media
Strategy
–
Endorsement
• Influencers
(Primary
targets)
h2p://cupcakesandcashmere.com/
• Thirty-‐year-‐old
Emily
Schuman
• Life
style
blogger
• Unique
blend
of
fashion,
food
and
an
arqul
approach
to
daily
living
• 120,000
daily
visitors
• Seen
as
her
generaGon's
Martha
Stewart.
41. Social
Media
Strategy
–
Endorsement
• Influencer
(Secondary
target)
h2p://fimynoqrumpy.blogspot.com/
• AcGve
talking
about
fashion,
healthy
eaGng
and
lifestyles
for
women
over
50
• Encourage
women
50+
being
visible
and
fabulous
• 700k
views
42. Social
Media
Strategy
–
E-‐mail
Outreach
• Collect
email
data
from
consumer
via
social
media
and
website
events
• Send
email
to
consumers
at
least
twice
a
month
with
promoGon
informaGon,
product
informaGon,
and
social
events.
43. Mobile
Plaqorm
• Build
a
mobile
plaqorm
which
is
more
product-oriented
• Keep
the
content
simple,
organized,
and
easy
to
navigate
• Make
it
small-screen
user-‐friendly
(i.e.)
easy
to
scroll
• Avoid
too
much
words
44. Loyalty
Program
• ObjecGve:
IncenGve
loyalty
program
to
retain
consumers
• Point
collecGon
of
purchase
from
both
online
and
offline
channels
• Make
it
fun
and
incenGve
• Set
silver,
golden
and
plaGnum
consumer
loyalty
card
.
-‐
Silver
:
easy
to
enter,
gain
basic
benefits
like
birthday
sample
gims
and
encourage
them
to
purchase
more
to
upgrade
-‐ Golden:
receive
surprising
10%
discount
3
Gmes
a
year
-‐ PlaGnum:
20%
discount,
private
events,
spa
discount
.
45. Strategic
RecommendaGon
BRAND
STRATEGY
• Perceived
image:
Luxurious
organic
lifestyle
product
• Brand
image/message
must
be
consistent
in
all
channels
CAMPAIGN
OBJECTIVES:
• Enhance
brand
image
• Increase
brand
awareness
&
acquire
new
customers
• Increase
engagement
&
Sales
• Retain
customers
ONLINE
• Brand
website
re-‐design
strategy
• Product
offer
strategy
(Personalized/limited/
bundle)
• Social
media
strategy
• SEO/SEM
strategy
• Mobile
plaqorm
strategy
• Loyalty
program
(integrated
with
offline)
OFFLINE
• Event
• Sponsorship
• Partnership
• Print
ad
with
QR
codes
• Give
away
sample
• Loyalty
program
(integrated
with
online)
46. Event:
Exclusive
Cruise
Party
ObjecGve:
-‐
Enhance
lifestyle
brand
image
-‐
increase
consumer
engagement
-‐
MoGve
consumers
to
enroll
loyalty
program.
Concept:
• Invite
20
Redflower
consumers
to
join
an
exclusive
1
day
boat
party
in
Summer.
• Consumers
have
to
send
applicaGon
via
Redflower
website.
Use
all
social
media
plaqorm
to
promote
this
event
How
to
get
in:
• 10
consumers
are
selected
from
Red
flower
PlaGnum
loyal
consumers
• 10
consumers
are
selected
with
below
requirements:
-‐ Purchased
products
from
Redflower
in
last
3
weeks
-‐ Share
a
picture
of
Redflower
product
showing
lifestyle
on
FB/Twi2er/Instagram
Online
&
Offline
AmplificaGon
Post-‐event
PR
on
media
and
social
media,
i.e.
Red
flower
social
media,
lifestyle
blogs,
magazine,
press.
47. Sponsorship
ObjecGve:
-‐ Increase
brand
awareness/
buzz
and
media
presence
-‐ Enhance
lifestyle
brand
image
Proposed
sponsorship
event
:
-‐ Sponsor
2014
diner
‘en
blanc
table
candles’
(aka.
“dinner
in
white”)
-‐ 4,000
out
of
45,000
chosen
-‐ Place
Red
Flower’s
candle
in
the
dinner
event
to
enhance
ambience
-‐ Give
away
sample
in
this
fashion
events
48. Partnership:
Healthy
Lifestyle
ObjecGve:
Enhance
the
lifestyle
brand
image
by
strategically
partnership
with
healthy
living
and
lifestyle
related
businesses,
i.e.
lifestyle
yoga
studio,
chic
organic
restaurants.
Red
flower
cares
for
your
health
and
wellness
Store
Discounts
Membership
Discount
49. Print
ad
with
QR
code
:
Beauty
of
course
is
an
enigma,
an
indefinable
topic,
a
highly
personal
point
of
view
that
exists
in
a
field
of
possibiliGes
that
range
from
absolute
mundane
to
deeply
profound.
I
immediately
began
assembling
a
short
list
in
my
mind
of
how
I
define
beauty...survival,
happiness,
truth,
health,
self-‐
expression,
strength,
power,
belief,
faith,
adtude,
style,
sensuality,
desire,
virtue,
a2racGon,
love,
nature,
childhood,
life,
arGfice,
symmetry,
grace,
transformaGon,
image,
in
the
eye
of
the
beholder,
passion,
celebraGon...I
hold
onto
the
potenGal
of
all
these
words
as
part
of
a
deeper
connecGon
to
the
resonance
of
beauty.
"All
water
has
a
perfect
memory
and
is
forever
trying
to
get
back
to
where
it
was."
-‐-‐
Toni
Morrison,
Beloved
To
me,
beauty
is
a
way
of
living
life.
bringing
the
whole
self
to
every
moment.
a
mulG-‐dimensional,
mulG-‐sensual
existence
where
everything
is
appreciated.
beauty
is
a
way
of
living
life
more
fully,
a
way
of
seeing
and
feeling,
ledng
go
and
believing.
for
me,
beauty
starts
with
a
bath.
a
primal
act
of
self-‐
care
that
brings
health
and
purificaGon
to
the
whole
body.
it’s
important
to
make
space
in
a
full-‐day
cycle
to
draw
a
hot
bath,
or
experience
a
shower
under
steaming
water
-‐-‐
the
sensaGon
of
warmth
and
water
on
the
skin,
the
rhythmic
sound
of
water,
the
quiet
of
washing
skin,
and
the
clean
somness
that
comes
from
scrubbing.
dim
the
lights
and
add
a
sweet
scent
of
a
candle
flickering,
anoinGng
the
body
with
warm
oil,
pause,
listen,
and
relax
-‐-‐
find
the
purity
that
is
residing
momentarily
in
the
senses,
this
is
beauty.
bathing
is
a
ritual
that
evolves,
it
can
electrify
and
inspire.
ObjecGve:
-‐ Create
brand
awareness
-‐ Drive
traffic
from
offline
to
online
How
-‐ ArGcles
introducing
philosophy
of
red
flower
and
organic
product
ingredients
50. Publica,on
Reach
Against
A25-‐44
Path
to
Purchase
Editorial
Loca,on
Cosmopolitan
3,832,000
Awareness;
Engagement
Health
&
Fitness;
Confessions
Marie
Claire
45%
Awareness;
Engagement
Health
&
Fitness;
Love
&
Sex
Glamour
8,562,000
Awareness;
Engagement
Health
&
Diet;
Sex
&
Love
Vogue
11,491,000
Awareness;
Engagement
Fashion/Style
content
Elle
5,897,000
Awareness;
Engagement
Sex
&
RelaGonships
InStyle
2,207,000
Awareness;
Engagement
“Summer
Steals”/
What
to
do
Maxim
39.1%
Awareness;
Engagement
Food
Fight/100
Supplement
*Source:
Individual
media
kits
found
online
Print
ad
with
QR
code:
Suggest
magazines
51. Sample
ObjecGve:
Increase
brand
awareness
and
sales
Friend-‐for-‐friend
program:
Bring
a
friend
to
store
or
refer
a
friend
online(website/social
media)
to
win
samples
together
Birchbox.com:
Work
with
Birchbox
to
give
away
sample
to
real
beauty
lover
with
spending
power
• 300,000
subscribers
in
U.S.
• For
a
$10
monthly
membership,
it
sends
the
subscribers
a
box
of
samples
of
cosmeGcs
and
beauty
products
on
monthly
basis.
52. Campaign
Summary
Obj.
AWARENESS
SALE
Digital.Channels
SUSTAIN
Social Media
Search
Personalization
Website
Loyalty Program
Print with QR Code
Event
Partnership
Give away sample
Mobile
Sponsorship
E-mail
54. • Click
through
rate
• Conversion
rate
• Bounce
rate
• Number
of
engagement
in
social
media
(
#
of
fans,
#
of
talk
about,
#
of
shares)
• Applause
rate
•
#
of
new
unique
visitor
• DuraGon
of
visit
• #
of
visitors
from
QR
codes
• Sales
per
unit
• Unit
per
transacGon
• Total
sales/revenue
Performance
EvaluaGon
Metrics
