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Nutricosmetics:
Designing effective marketing strategies to
exit the niche and target a sizable market
Research paper : Em...
1. Introduction to the research topic: Nutricosmetics as a business question mark
An increased interest towards the concep...
Nutricosmetic is based in the belief that beauty can be addressed from within by consuming specific active
nutrients
2. Nu...
WESTERN BUSINESSES ARE FACING A PIVOTAL POINT
Today’s business essentials
Anti-age
supplements
for + 30 years-old
women
Th...
RQ: “Which are the specific marketing approaches manufacturers should adopt to introduce new demand
segments to the use of...
#1
4. Research Findings 1/3: Purchasing habits and category perception
If you say supplements they think about…
Vitamin C
...
“The wavering perfectionists or
eternal undecided?”
“The charmed spontaneous”
“The disoriented triers”
“The committed expl...
4. Research findings 3/3 : Hypothesis confirmation and disconfirmation
Hp1: Consumers towards the choice of nutricosmetics...
5. Managerial implications 1/3
The Nutricosmetics Branding Matrix (NBM):
Guidelines for product branding decisions
6. Managerial implications: Consumers’ acquisition guidelines
SHORT-TERM
ACTIONS: Leveraging on the young “GATEKEEPERS” of...
LONG-TERM
ACTIONS: Adopting specific marketing tactics to attract new
consumers’ segments (cluster C1 and C5)
Revitalizati...
7. APPENDIX 1/3: Sample description
0
20
40
60
80
100
120
140
160
180
18-24 25-35 36-46 46+
Frequencies
Age ranges
330 res...
“Wavering perfectionists or eternal undecided?” “The charmed spontaneous”
“The disoriented triers”
“The committed explorer...
"It attracts me"
"It disturbs me"
"It is a joke or does it
really exist?"
" I would try it!"
"This brand should not
produc...
THANK YOU
Claudia Aiello
Email: Claudia.aiell@gmail.com
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Nutricosmetics: Designing effective marketing strategies to exit the niche and target a sizable market”

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Negli scorsi cinque anni, il lancio di nuovi prodotti e il cambiamento nello stile di vita dei consumatori hanno fatto emergere un crescente interesse nei confronti del concetto di “beauty from within” (“bellezza dall’interno”). Il fenomeno, a cui le aziende hanno risposto con la creazione della “nutricosmetica” (integratori e cibi per la bellezza di pelle, capelli e unghie), è basato sull’idea che il consumo di specifici nutrienti possa agire sul nostro aspetto esteriore.

L’obiettivo di questa ricerca è di indagare come il rapporto dei consumatori con il mondo della bellezza sta evolvendo e rispondere quindi alla seguente domanda:
“Quali sono le strategie di marketing che le aziende dovrebbero adottare per introdurre nuovi segmenti di mercato all’uso di nutricosmetici?”

Published in: Marketing
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Nutricosmetics: Designing effective marketing strategies to exit the niche and target a sizable market”

  1. 1. Nutricosmetics: Designing effective marketing strategies to exit the niche and target a sizable market Research paper : Empiric research run on western consumers Author: Claudia Aiello December 2015, Milan
  2. 2. 1. Introduction to the research topic: Nutricosmetics as a business question mark An increased interest towards the concept of beauty from within is accused in the western markets CONSUMERS’ LIFESTYLE UNSUCCESSFUL BUSINESS ATTEMPTS #Healthy#PurifyingDrink #DIYBeauty #Fruitpower #FashionSoupes Skin moisturizing yoghurt (Danone,France, 2007) Skin fortifying Drink (Nestlé, US, 2009) Beautyifying chocolate (Mars, US, 2007) Nutricosmetics brand (Inneov, Join venture L’Oréal and Nestlé, Europe, 2015) Anti-ageing cereal bars (Barilla, Italy, 2007)
  3. 3. Nutricosmetic is based in the belief that beauty can be addressed from within by consuming specific active nutrients 2. Nutricosmetics in western markets: current situation ‘80, Japan Modern technologies gave birth to nutraceuticals $ 4 bln Global Annual sales T2015* ’80s, Denmark Imedeen, the first nutricosmetic brand, is born #2 #1 #3 #4 #5 Pushing the growth: Consumer Health industry’s shift towards prevention + 4% Growth rate 2013-2014* *Euromonitor International, 2013
  4. 4. WESTERN BUSINESSES ARE FACING A PIVOTAL POINT Today’s business essentials Anti-age supplements for + 30 years-old women The drivers of tomorrow Young men and women* SELECTIVE *Euromonitor International, 2013 MASS
  5. 5. RQ: “Which are the specific marketing approaches manufacturers should adopt to introduce new demand segments to the use of nutricosmetics?” RESEARCH DESIGN I. Exploratory research: Understanding consumer’s attitudes and marketing practices towards food supplements and nutricosmetics; II. Descriptive research (Italy): Online Survey design and quantitative data collection; III. Data analysis: Factor Analysis, Cluster Analysis and Correspondence Analysis; IV. Findings: Demand Clusters, consumers preferences towards beauty foods (Matrix construction); V. Managerial implications: marketing strategies for growth (Short-term and Long-term); Impact of regulatory changes Price and distribution issues Exploring novel concepts Overcoming consumer scepticism KEY MARKET’S GROWTH BARRIERS* 3. Research design
  6. 6. #1 4. Research Findings 1/3: Purchasing habits and category perception If you say supplements they think about… Vitamin C Calcium Carotene #2 #3 The main way I discover about new beauty products I try… 47% Friends 45% Supermarket 31% Commercials If I have to look for information on nutricosmetics i first think about… #1 #2 39% Internet 31% The Doctor 12% Asking the Seller #3 If I want to buy beauty foods I mainly consider… #3 Herbal shops #1 #2 Pharmacies Internet What about using nutricosmetics? “They do not substitute my current beauty practices” “Men would address more beauty concerns than women by them” “”Women would consider them for beauty concerns that topical products can not completely solve”
  7. 7. “The wavering perfectionists or eternal undecided?” “The charmed spontaneous” “The disoriented triers” “The committed explorers” “The enthusiastic naturalists” 4. Research Findings 2/3: Demand clusters About the evaluation driver towards dietary supplements, according to the importance given to…. 1. The internal product’s formula 2. Marketing experiential features 3. Endorsing elements 4. Origins of the product 32% 18% 20% 16% 14% CLUSTER 1 CLUSTER 2 CLUSTER 3 CLUSTER 4 CLUSTER 5
  8. 8. 4. Research findings 3/3 : Hypothesis confirmation and disconfirmation Hp1: Consumers towards the choice of nutricosmetics products prefer those having the highest degree of natural image. Hp2: Nutricosmetics are perceived as complementary to current cosmetics products. Hp3: Consumers, towards the decision of purchasing beauty foods, trust more brand having a previous experience in the nutritional domain. Hp4: People who are already used to the consumption of food supplements will be overall more willing to try nutricosmetics. Hp5: Beauty food’s products people consider part of their cultural habits or icon products will be less likely to be tried as a beauty food compared to other products. Hp6.1: 1/Due to the low consumer’s confidence over the products category of nutricosmetics, the online channel is a prescriptive pre-purchase channel today but it is expected to become a distribution one in the future. Hp6.2 :The behavior of looking for nutricosmetics in specific channels depends on consumer targets. HP7: Women are more willing to introduce nutricosmetics into their daily routine than men. In other words, they accept the solution of beauty from within for an average higher number of beauty concerns than men; Not Confirmed Confirmed
  9. 9. 5. Managerial implications 1/3 The Nutricosmetics Branding Matrix (NBM): Guidelines for product branding decisions
  10. 10. 6. Managerial implications: Consumers’ acquisition guidelines SHORT-TERM ACTIONS: Leveraging on the young “GATEKEEPERS” of cluster 4b (25-35) to convert new consumers Fast expansion moves BUSINESS OBJECTIVE: To grow volumes INGREDIENT BASED - PRODUCT PACKAGING: Experiential on the front (impulse buying cluster 2) and iconographic (clear on its content) on the back (high involvement cluster 4).1 2 NEW PRODUCT BENEFITS: Targeting impure skin’s imperfections and dark circles due to the intense lifestyle of millennials and threatening environmental conditions 3 CHANNEL AND PROMOTION: supermarket’s strategic placement of the product next to the current ones addressing the same body part (as a complementary solution with those for external use) and product bundling. 4DIGITAL STRATEGY: Since today the market is a one way ROPO ( Research Online Purchase Offline) , and it is not ready for e-tailing, in order to spread the knowledge about the category, integrated digital camoaigns (such as insight based viral videos, investments in SEO and SEM) are necessary to build brand equity and drive traffic to the website. 5. Managerial implications 2/3: Consumers’ acquisition guidelines *Inspired to the “Innovation adoption curve” by Everett M. Rogers SHORT-TERM
  11. 11. LONG-TERM ACTIONS: Adopting specific marketing tactics to attract new consumers’ segments (cluster C1 and C5) Revitalization by offer segmentation OBJECTIVE: To expand margins 1 2 FULLY MAN LINES AND BRANDS: Targeting genders specific beauty concerns. 3 4 DIGITAL STRATEGY: The market will develop towards a more complex purchasing funnel (Research Online Purchase Offline plus Rsearch Offline Purchase Online). At this point new services like e-tailing and life-style integrated digital services to be connected with consumers’s health evolution (ex. smart bands, apps like Nike running) will be the key to reach a competitive advantage. BENEFIT BASED - PRODUCT PACKAGING: In order to get a simplification of the category ( cluster 1). BIO-NUTRICOSMETICS: Developing products with claims like « free- from, vegan, vegetarian etc..» to further proceed with market segmentation (cluster 5). CHANNEL AND PROMOTION: Developing concept stores and corners for the nutricososmetic category in order to actuate a « standing alone » store placement. I fact at this stage the category is expected to have entered consumers’ consideration set. 5 5. Managerial implications 3/3: Consumers’ acquisition guidelines LONG-TERM *Inspired to the “Innovation adoption curve” by Everett M. Rogers
  12. 12. 7. APPENDIX 1/3: Sample description 0 20 40 60 80 100 120 140 160 180 18-24 25-35 36-46 46+ Frequencies Age ranges 330 respondents 0 20 40 60 80 100 120 Frequencies Region of provenience 75% distribution 0 5 10 15 20 25 30 35 40 45 First level degree Second level degree High school Middle school Other Frequencies Education level % Involved in beauty and wellness practices 70% 30% 60% They use between 3-5 beauty products daily (34% of the sample) 44% use dietary supplements 40% use nutricosmetics Genders’ quota Respondents’ age distribution Respondents’ education level distribution Respondents’ provenience distribution
  13. 13. “Wavering perfectionists or eternal undecided?” “The charmed spontaneous” “The disoriented triers” “The committed explorers”“The enthusiastic naturalists” 32% 18% 20% 16%14% CLUSTER 1 CLUSTER 2 CLUSTER 3 CLUSTER 4CLUSTER 5 They are consumers between 25-35 years old. Independent professionals who put a low budget on beauty and have never tried dietary supplements and functional drinks before.When they are faced with the situation of evaluating dietary supplements ,they lever on the product’s origins and consider mainly its natural content. In terms of information providers they rely on Radio and social medias. They are more adult consumers (+ 46). Dependent employees who are involved in beauty but put a middle-low budget on it (mass market consumers) . They currently consume dietary supplements and functional drinks. When they are faced with the situation of evaluating dietary supplements ,their evaluation process is very ponderated ( they struggle to prioritize). This is likely to bring to the paralisis of choice if marketing lacks of support. In terms of information providers they rely on TV and news papers. They are consumers between 18-24 years old. Mostly students or interns, they are highly involved in beauty but put a low budget on it (mass market consumers) . They are the most recurrent consumers of dietary supplements and functional drinks. When they are faced with the situation of evaluating dietary supplements ,their evaluation process is unloaded since they rely on bare marketing features. In terms of information providers they are multichannels (internet, radio, TV social meadias) and they use the least newspapers. They are consumers between 18-35 years old. Mostly students, they are moderately involved in beauty and are the lowest spenders on it . They are not used to dietary supplements’ consumption and functional drinks but they did it in the past. When they are faced with the situation of evaluating dietary supplements ,their evaluation process is transferred on someone else. They tend to ask for advices and simplify their choices looking for external and convenient endorsing factors. In terms of information providers they consider TV and news papers. 7. APPENDIX 2/3: Demand Clusters They are consumers between 25-35 years old. Independent professionals or hausewives, high involved in beauty, who put a middle-high budget on it. More than any other cluster they practise esthetic treatments and they are worried about ageing. They consumer periodically dietary supplements for hair and skin and they result to be the current consumers of nutricosmetics. When they are faced with the situation of evaluating dietary supplements ,they are highly involved and they deep study the internal features of the product they buy. In terms of information providers they rely on internet and newspapers.
  14. 14. "It attracts me" "It disturbs me" "It is a joke or does it really exist?" " I would try it!" "This brand should not produce this kind of product" " I am concerned about its taste" "It think it might be dangerous""I don't think it works" "When should it be used?" " I would NEVER try it!" "This product's type is not adapt to have benefical effects" Clarins DanoneL'Angelica Erbolario Barilla Nescafé J&J Jeannie Nivea L'Oréal -1,000 -,500 ,000 ,500 1,000 1,500 -1,500 -1,000 -,500 ,000 ,500 1,000 IncoherentproducttypevsIncoherentbrandimage Attractive/To be tried vs Disturbing/Not to be tried What do consumers think of beauty foods? 7. APPENDIX 3/3: Branding effects *Products have been creatively designed combining brands and products from different sectors (following the findings of the exploratory research)
  15. 15. THANK YOU Claudia Aiello Email: Claudia.aiell@gmail.com

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