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Analysis on Kiehl's Marketing & Execution
The document analyzes Kiehl’s brand positioning and market presence, detailing its customer demographics, competitors, and product offerings in the beauty sector. It highlights the company's strengths, such as natural ingredients and rich heritage, while addressing weaknesses like low brand awareness and inconsistent customer experiences. Recommendations include improving in-store training, increasing brand consistency, and enhancing marketing efforts to boost awareness and customer satisfaction.
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Analysis on Kiehl's Marketing & Execution
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- 11. First Men SkinProducts
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- 17. 5C Analysis –Customers “Overview of Madrileños” 1.62M 3.23M .80M Madrid Barcelona Valencia Population Gender & Age W M More than 40% are 30s – 50s50% 50% GDP per Capita & Jobs €31,000 35% higher than national average 16.5% of all jobs in Spain allocated in Madrid
- 18. 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 are L’Oréal, Nivea, Dove, Clinique, and Lancôme
- 19. 5C Analysis –Competitors High Price Natural Ingredients Low Price Scientific Methods KIEHL’S CLARINS L’OCCITANE BIOTHERM CLINIQUE AVEDA
- 20. 5C Analysis –Company L’OREAL FAMILY Expand Global LONG HISTORY 164 Years in Beauty Care having 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 & Services the 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.
- 21. 5C Analysis –Collaborators 9 stores out of 11 in Madrid are located in El Corte Inglés Fashion magazines & bloggers to influence customers
- 22. 5C Analysis –Context 4.46B 2011 2012 2013 4.20B 4.05B The Cosmetic and Toiletries Market in Spain *Source: http://www.statista.com Population Pyramid 2013 and 2023, Spain *Source: Instituto Nacional de Estadistica Getting older
- 23. 5C Analysis –Context Unemployment Rate in Madrid & Spain Average Payrolls in Madrid & Spain Source: Madrid Statistic Institute and Ministry of Economy In recovery trend…
- 24. SWOT Analysis • LowBrand Awareness • Unclear brand positioning • Limited distribution • No advertising • Hipster and metrosexual culture • Men grooming • Loyal customers • Word-of-mouth • Over-crowded market • Competitors’ high spending on advertising • Poor presence outside big cities S O W T • Medical knowledge • Heritage • Low price within premium segment • Owned by L’Oréal
- 25. 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
- 26. 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.”
- 27. What the product doesfor 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 Founded in 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 Pharmaceutical Herbal Personalized Skin Check Grooming Stylish Satisfied Skin and hair concerns solved Relieved Nice Charming Helpful Customer- centric Joking Innovative Environmentally safe Proud
- 29. 4P MIX -Product “ingredients are the single most important component” Natural Ingredients Package Design Unlike other luxury skincare brands, they are • selling in bottles with very basic shape & color • are crowded with contents those 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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- 31. 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 are cleansers, moisturizers and shaving products • Kiehl’s products are appreciated for their efficacy and natural ingredient
- 32. 4P MIX -Price • Higher than mass-market ones. • From the survey, people considered the price of Kiehl’s as normal or slightly expensive Price Range of basic products €9.5 ~ 60 €8 ~ 154 €9 ~ 106 • Priced at the low level of the premium beauty care segment
- 33. 4P MIX –Points of Sales Flagship Store Department Store Online Store Supermarket Hypermarket Beauty Shop
- 34. 4P MIX –Points of Sales Flagship Store Department Store • No Test • No Samples (before we requested) • No Harley Davidson (in some stores) • No Friendship • Not welcomed We got every things we expected!! =
- 35. 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 media and on word-of-mouth.
- 37. Customers on Communication •Main sources of information about Kiehl’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
- 39. Problem #1 Inconsistency ofcustomer in-store experiences Excellent Service Less than Expected
- 40. Problem #1 Inconsistency ofcustomer in-store experiences Two happy customers Nine unhappy customers
- 41. Problem #2 Inconsistencyin Branding Website Social Media Store Hyper-modern Modern 19th century American apothecary Discrepancy in key images from different channels
- 42. Problem #3 LowBrand Awareness Unsatisfied in-store experience Inconsistency in brand communication No word-of-mouth effect Dilution of the brand Low Brand Awareness!
- 43. Recommendations 1. Improve consistencyof 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
- 44. Recommendations 2. Increase consistency ofwebsite 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