Contents Ethical Check Form.............................................................................................. Introduction........................................................................................................... Background History.............................................................................................. Methodology........................................................................................................
1 2 2 3-4
Internal Audit Brand DNA............................................................................................................. Brand Essence....................................................................................................... Brand Presence..................................................................................................... Target Consumer..................................................................................................
5 5 6 7-8
External Audit Brand Positioning................................................................................................... 9 Market Overview................................................................................................... 10 SWOT Analysis ....................................................................................................... 11-12 Research and Findings Market Trends......................................................................................................... 13-17 Consumer Trends................................................................................................... 18 Consumer Insights.................................................................................................. 19 Innovation Strategy- Opportunity Platform and Ideas Identifying Opportunity Platforms........................................................................ 21 Prioritising Opportunity Platforms..........................................................................22-23 Product Development Harvesting Ideas......................................................................................................24-26 Gap Analysis............................................................................................................27 Refining of Ideas (Product Concepts)..................................................................28-29 Consumer Trial Feedback......................................................................................30-31 Hierarchy of Innovation..........................................................................................32 The Product Feasibility............................................................................................33 The Volume Brick Up................................................................................................ 34 Actions to be Taken................................................................................................. 35 Final Product Idea...................................................................................................36-37 Target Consumer.....................................................................................................38 Consumer feedback...............................................................................................39 Overall Product Benefits and Conclusion............................................................40 Time plan..................................................................................................................41-42 Bibliography.............................................................................................................43 Image Referencing.................................................................................................44-45 References..............................................................................................................46 Appedix...................................................................................................................47-54
Lauren Reeve: N0499751 Anna Robbins: N0422553 Diren Demirta: N0508368 Masasshi Iwata: T0007659
All group members had equal contribution in the writing of this report.
We confirm that this work has gained ethical approval and that we have faithfully observed the terms of approval in the conduct of this project. In completing this project all intellectual property rights will be owned NTU and under the conditions of completing a live project with Boots, ideas will be available for them to use.
Signed.............................................................Date.......................... Signed.............................................................Date.......................... Signed.............................................................Date.......................... Signed.............................................................Date..........................
Word Count: 3,832
1.
Introduction This report aims to explore the current trends within the UK cosmetic industry, along with analysing consumer insights in order to create a credible business solution for the No7 brand. This will be achieved through identifying a new product idea capable of broadening No7’s appeal within the market.
Background History No7 are a UK based beauty brand operated by Boots and Co. Ltd. Established in1935 by Florence Boot, the name originated from a time where the number seven was frequently used to denote perfection. The brand initially offered a selection of eleven skincare products aiming to “offer the highest quality products at value for money prices” (Richardson,2015). By 1937 the brand had expanded into colour cosmetics following an increase in demand.
However, the company almost disappeared when production was heavily effected during the second world war, but was reintroduced in 1942 and fully re-launched 10 years later with a new tagline: “Better and lovelier than before”. For over 79 years the brand has been the UK market leader gaining a strong trusted reputation amongst customers. This has achieved this by constantly developing the brand through innovation and adapting to changes within the market offering a diverse product range from skincare to electrical 2.
Methodology In order to gain an in-depth understanding of consumer perceptions to the current beauty market, we began by conducting an online survey aimed at No7’s target audience women between 25-45. This was posted online on platforms such as beauty blogs and relevant brand social media pages, such as No7. The survey received 50 respondents, allowing us to gain a representative result. Following this we went into Boots and undertook observation of the store environment, comparing the No7 stall to competitors counters. We then undertook a short interview with No7 staff in order to gain a professional advice on product opportunities for the brand. Furthermore we attended the London Beauty Expedition, using this opportunity to look at the most innovative products in the market and to ask beauty professionals their opinions on our key product concepts and their technical feasibilities. At the final stages of our product development we conducted two focus groups, one of 11 respondents to gather in-depth feedback on our product concepts, and one of 9 to help develop our final idea further, overall helping us to finalise a credible product. Our secondary research consisted of trend forecasting sites such as Trend Watching, Mintel and Keynote as well as beauty brand websites and blogs. These sources were used to research existing products in the market and gather insights into the latest innovations.
03.
04.
Internal Audit Brand DNA Mission: “To offer the highest quality products at value for money prices” Vision: “To be the leading face brand within the UK, with a solid balance between skin & colour”
Emotional Values No7 is built on being honest, approachable and warm, and stays true to that today, to make you feel fabulous inside & out.
Functional Values No7 offers a range of products that are hypo-allergenic, being suitable for sensitive skin.
Brand Essence Brand Promise
Brand Attributes • • • •
Brand Personality Approachable Innovative Honest Warm Caring
05.
Highest Quality Value for money Hypo-allergic
Proven results Trusted Heritage Authenticity
‘Expert in your face’
Source of Authority No1 beauty brand in the UK 77 years of expertise British roots Scientific Research Expertise across a range of categories
Brand Presence
No7 are currently UK market leaders, with 33% market share. It is sold exclusively through Boots Ltd in the UK and has an international presence as a challenger brand. It is ‘loved by consumers being the most human and inclusive beauty brand.’ (Richardson.Y, 2015, Brand and Market lecture) No7 offer a range of products within product categories; skincare, makeup, men’s, electrical, anti-ageing, bath & body, sun care, accessories and hair care. No7’s most successful ranges are ‘Lift and Luminate’ and ‘Protect and Perfect’ which includes their hero product; Protect & Perfect Serum. This serum has been clinically proven to effectively reduce the appearance of lines and wrinkles, and was declared by a BBC horizon documentary to be the only product on the market to have proven anti-ageing effects leading to a years’ worth of supply selling out within two weeks.
06.
07.
Target Consumer No7’s target consumer is woman between 25-45 years old from any ethnic background. Within ABC1 she has a successful career she loves, and as her children are getting older she finds herself with more time and money to spend on herself. She is a beauty fanatic and loves finding new products that are right for her, she wants to feel unique and doesn’t like being told how to look! She is confident in her own skin an wants to enhance her own beautiful features, staying away from artificial beauty. She is sociable and fun and wants a cosmetic range to reflect that.
Name: Sarah Cooke Age: 32 Occupation: Teacher Relationship Status: Married Likes: Reading the beauty reviews in cosmopolitan , Walking her dog, Cooking, Yoga, Getting dressed up for date night with her husband, Downton Abbey, Holidays and her Mini. Dislikes: Queuing in busy town centres, Outdoor Activities and getting dirty, hates the thought of getting older, ironing her husbands shirts!
08.
External Audit Brand Positioning
No7 has a strong position within UK market as it is a highly science based brand with products offering effective and proven results for customers, yet being positioned for more mass consumers, it allows them to be approachable. The brand has gained much trust by being a beauty expert with a luxury feeling products, yet it has lower pricing compared to competitors making it value for money and therefore more accessible. Its closest competitor is L’Oreal who also focus their beauty around science and are Europe’s market leaders, however their price point is slightly lower than No7, which allows No7 to have a greater aspirational appeal within the UK market, something which was highlighted within our primary research as a brand trait. Its key premium competitor would be Clinique, but No7 is set apart from these cold, premium brands due to the warm and friendly approach the brand has, despite the heavy influence of science.
09.
Market Overview No7 operates within the UK beauty and personal care market, which has experienced strong and steady growth over the last 5 years and was estimated to be worth ÂŁ9.2 Billion in 2014, which was an increase on previous years driven by a 3.1% increase in beauty products. (Mintel, Beauty Retailing, UK January 2015) Mintel have forecast a continued strong growth in this market over the next few years with an increase of 4% in consumer spending. UK women deem make-up and skincare as an essential as they wear make up everyday and have a daily skincare routine (KeyNote, 2014, Cosmetics & Fragrances Market Report) The highest grossing section of the market is colour cosmetics, at ÂŁ1.5 million. (Mintel, Beauty Retailing, UK January 2015)
5% 5% 8% 33%
8%
9%
16%
16%
No7
Avon
L'Oreal Paris
The Body Shop
Benefit
Estee Lauder
Clarins
Lancome
10.
SWOT Analysis Strengths: • No7 has a strong UK Brand heritage of 77 years of beauty expertise, something which is unique within the market. • Women in the UK place make-up and skincare as an essential product, resulting in a constant demand for products. • Strong market positioning as it is a highly scientific brand yet has a approachable personality and is value for money. • The UK’s obsession with youth and beauty is creating a demand for anti-aging products. Protect and perfect is the hero product, the only anti-aging cream with proven working ingredients which gained a high trust amongst customers • Many customers of the beauty market are brand loyal and are not tempted by lowcost but stick to products with results.
Weaknesses: • In a highly saturated market place, No7 may loose its identity amongst the strong boots branding, leading to it being known as boots “own brand” rather than as a brand itself. Being considered a own brand may damage its desirability in the market. • After much publicity surrounding their successful anti-aging products, they may be associated as a brand for “older women” which according to primary research is damaging the brand attractiveness for younger customers. • The brand has many competitors with strong personalities, and with a brand positioning which is neither cheap or premium, our primary research showed many people are put off by this.
Opportunities: • No7 could build upon trusted scientific approach by taking a more medical attitude by developing treatments suited to skin conditions. • More focused products for younger generations • The social stigma towards male beauty is changing, and so there is an opportunity to expand ranges to include male-focused make-up. • No7 could develop their international presence by creating products for different cultures and ethnic demands.
Threats: • With constant NPD within the beauty industry, innovation from key competitors can damage No7 at any time. • Continued changed in EU regulations and banning of chemicals may effect the ingredient make up of some products, changing the effectiveness • The increase of online retailers and distribution channels may cause No7 to fall behind when being sold only exclusively at boots.
We believe No7’s key strength is its strong position within the UK market, by being trusted for results and accessible for all consumers we feel No7 can creative innovative products that will be believed by the consumer, and so will succeed. We felt a weakness was the brand identity, with such successful anti-aging products the brand has become associated as being for the older consumer, however for us this highlighted a key opportunity to introduce more products which will appeal to a younger consumer.
12.
Key Market Trends
13.
Ageing Population Ageing of the UK population is a trend that is projected to continue with statics shown from (National Statics, 2012) report that by 2035 the average median age will have risen to 42.2 years with those aged 65 and over accounting for 23% of the total UK population. The UK currently hold a population with 10 million people over 65 years old with this figure estimating to double to around 19 million by 2050. Furthermore there are currently three million people aged 80 and over which is also projected to almost double by 2030 reaching eight million by 2050. (Cracknell. R, Parliament.uk)
The fact that people are living longer within the UK means they want more from their lives and many now wanting to spend their hard earned money for themselves rather than prioritizing inheritance for their families. Active, engaged and working seniors present new, extended opportunities for the cosmetics industries. (Mintel report, colour cosmetics, 2014). It has become an essential target audience for brands to continue the pace of growth in the market.
14.
Health and Well-being UK consumers are currently being influenced by a increased interest in health and well-being within the UK driven by social media and media focus on the demand to look and feel good. Generation Y where the trend adopters as a social trend, but as markets, media and interest around health and well-being increased it has grown into a macro trend. Wider demographics are taking a stronger interest in looking after their health, and now UK consumers are spending and investing in products that have health benefits. Mintel forecast this is a growth area of the market for the UK in coming years reaching around a ÂŁ1.4 million industry by 2019. Brands are adapting to this trend by marketing the health benefits of their products to appeal to this consumer.
15.
Personalisation
Mass consumerism is becoming a thing of the past. As the technologies have developed, over the last 10 years personalization has grown into a macro-trend, customers are gaining more power than ever and want products that recognize their individualism. From websites remembering customer purchase history to Coke bottles with names on, the consumer is beginning to demand this personalized brand experience and products tailored to them. The key to this trend for brands is creating products that allow consumers to feel they have some aspect of control over, forward thinking brands who will allow their consumers to be involved in all stages of the customization process - therefore making it feel bespoke to them. These experiences will allow brands to have a competitive advantage in the market by creating an emotional attachment with their consumer. 16.
Time-Management The modern consumer is always on the go. With more people living in cities than ever before, people are finding their lives busier and their time more precious. The convenience trend is being driven by the desire to create more leisure time, and so multi tasking products are becoming a must instead of a choice for this consumer. Younger shoppers between group 25- 34 are most engaged with this trend, and Mintel forecast this area is going to continue growing as younger demographics enter the market.
17.
Consumer Trends Multi-functional Products According to market researcher Mintel (Dougall. A, 2013), it is not the typical anti-ageing products that will drive future growth, but rather emerging trends such as multifunctional products. Consumers are gravitating towards multi-functional products that allow them to get more benefits whilst saving them both time and money. Consumers in this modern day are increasingly looking for added value in beauty products. Although manufacturers have worked with multifunctionality for a number of years now, we are now seeing them take inspiration from completely different categories and evolve to create new exciting and convenient products. The BB cream is a particular successful product which led manufactures to think about how they could build on their existing portfolios and add excitement to sectors which can sometimes be saturated. (Mintel, 2013) With consumer continuing to thrive for innovative time saving products new combinations will continue to evolve leading to new products, packaging and merchandising, adding a sense of excitement to the market. (Mintel, 2013) ‘Furthermore Mintel’s exclusive research highlights the popularity of multi-functional make-up in the US with as many as 70% of US female consumers expressing an interest in multi-functional product, with 65% showing an interest in multi-functional facial coverage.’ (Mintel,2013) A prime example of this are those products which combine the benefits of a foundation and concealer such as cliques beyond and perfect product. In addition to this not only are these products more time saving and beneficial but also save the consumer money.
Contouring Makeup Trend In late 2014 the influential celebrity Kim Kardashian kick started the makeup trend contouring when she posted a photograph of herself applying her base make-up and contouring her face using different shades to highlight and emphasise her features. After the ‘selfie’ trend officially entered the make-up tutorial arena in 2014 Contouring has now become a beauty buzzword, with many online tutorials appearing, informing women on how to use base makeup to enhance their bone structure and facial features. Furthermore according to Mintel this growing trend in the market ‘is expected to inspire women to make additional purchases in the colour cosmetics market, focusing on blending different shades of base products and investing more time on the APPLICATION of foundation. This increased investment in the category can provide a surge in retail value sales, similar to that seen after the BB boom in 2012 and the fashion for artistic nails in 2014.’ (Libby, 2015) ‘In addition to this the contouring trend focuses on enhancing the natural shape and features of the face, which could potentially develop further into other areas of make-up, for example eye and lip products that enhance natural shapes, rather than create a transformative look.’ (Libby,2015) 18.
Consumer Insights A survey was conducted during the research stage, with a sample of 50 women aged between 18-55. The questions asked were based around their personal thoughts and attitudes towards the current make-up market. The survey was carried out to gather information about their daily makeup routines and preferences, being an important factor to understand when developing the new product idea for No7. The results indicated that, all 50 respondents had purchased a beauty or skincare product within the last 4 weeks. This highlighted that consumers have high interest in purchasing beauty/skincare products frequently. Furthermore 63% of the sample claimed that they are more interested in buying the latest make-up products over skincare and they have learnt about new beauty products through recommendations from friend or family and also online beauty blogs or social media. Throughout the survey make-up wipes were seen as very popular amongst consumers with 79% respondents stating that wipes were their primary make-up tool over indulgent make-up removal products and process. When pushing for the reasons why, it was evident that consumers like the aspect of wipes being time saving and convenient In addition to this consumers feel that wipes offer the same results as other indulgent products and therefore feel no need to overspend on other products in the market. Overall this has highlighted that a key focus for the consumer is time saving convenience products. Furthermore our sample stated that they prefer using skincare products for the face in the day, and so looked for product that they could use in addition with their makeup. This is because any consumers said they liked to let their skin breathe at night and would rather use day creams that offer the same benefits such as a tinted moisturiser. Lastly a key theme that occurred through our research into consumer insights was that a large proportion of consumers carry their makeup bag around with them throughout the day and on nights out. This therefore means that consumers are seeking for products that offer convenience and are easily storable. The sample indicated that products such as “touch-elcat� and compact mirrors are perfect for on the move make-up, and so would opt for these when making make up purchasing decisions.
19.
Innovation Strategy (Opportunity Platform and Ideas)
20.
Identifying Opportunity Platforms
The first step in NPD is taking the key driving trends within the market and identifying opportunity platforms they present for the No7 brand to grow. The first enabler is time management as convenience is still a growing within the UK. Put together with No7’s business capabilities of having proven results, lead to the opportunity platform of developing time saving products for the No7 brand. A second trend that we highlighted as an enabler of growth is the consumer trend contouring. The key make up trend has just moved out of the early adaptors stage and so many make up brands have no adapted to the trend yet. Put together with No7 offering luxury feel products while being an approachable brand creates the opportunity of having their own contouring product for people just entering this trend. The third enabler trend we highlighted was personalisation, which has become a demand from the modern consumer. Together with No7’s well established brand name it creates an opportunity for consumers to create an emotional attachment to the brand by gaining a personalised experience through personalised products.
21.
Prioritising Opportunity Platforms
Our next step was to prioritize the opportunity platforms. By mapping the attractiveness of opportunity platforms in a table we were able to assess which are the most attractive opportunities for No7. Within big and easy we placed; time saving, convenience, customization and contouring as we felt these all had highest market potential, they also offered a ease of execution for a brand such as No7 and so these are the platforms we will develop further. Our next step was to prioritize the opportunity platforms using a table assessing each opportunity platforms against different variables. The two most attractive platforms were convenience and contouring as they both scored highly across all of our requirements having a high size of opportunity with high technical feasibility they also both fit in with the brand’s positioning and capabilities. 22.
Prioritising Opportunity Platforms Feasibility Assessment
Assessing the feasibility of our products, we found that the most attractive product was the contour stick as it achieved a high appeal across all of our assessment variables. The least attractive is the Facial scarring cream as we have recognized the target market is too niche and the innovation is too low to be unique within the market.
23.
App that measures wrinkle appearance
2in1 primer with day cream
Universal Lip liner
Lip Primer with pumping action
Fiber lashes mascara Contouring Stick Customized creams for skin problems
Harvesting Ideas
Anti-Aging Face Wipes
Brighter Eye Shadow Range
Facial Scaring Cream
Shellac/ Gels- with no need for UV light
Gym-Proof Foundation
12 Hour Botox Cream
Face Setting Spray
Blend it yourself Foundation
Cellulite/ firming body cream 24.
Harvesting of Ideas
25.
Harvesting Ideas Sorting Products into Themes Customization .Customized creams for skin problems . Blend Your own Tint BB cream- Add your own amount of colour and blend yourself . Customized creams for skin problems . Primer with tea tree oil-Skin treatment (spots) . Creams that reduce the appearance of scars- Bio oil for the face?! . BRIGHT RANGE
Time management . 2in1 primer with day cream . Shellac/ Gels -With no need for UV light . Fiber lashes mascara . Universal Lip liner . Eye Kit . Face setting spray .Lip primer with pumping action
Anti-Ageing . App that measures wrinkle appearance . Anti-Aging face wipes . 12 hour botox cream
Health & Wellbeing
. Cellulite/ firming body cream . Foot Scrub/ Lotions
26.
Gap Analysis
When assessing the market of time saving products, we looked at the kind of brands that already offered products that would save the consumer time. During this, we identified two gaps within the market. One opportunity was a time saving product targeting older consumers as we found all products for this age group where often indulgent and took a lot of time within the lower, mass- marketed end of the market. The second was a convenient specialist product for younger consumers to tackle an issue of on the go application or treatment.
27.
Refining Ideas
28.
GYM-PROOF Foundation
No7’s gym foundation comprises of a 3 in 1 foundation being sweat proof, breathable and an added cooling agent.
This No7 personalised foundation comes with your four different powder shades allowing you to customised the coverage and colouring to meet your skin type and colouring no matter what season it is.
Four Main Ideas
Seal and Heal Facial Scaring Cream
No7’s Seal and Heal Facial Scaring cream is a complex blend which will help to reduce scaring whether it be from a skin condition or a wound. The cream is lightweight and can be used day or night and in addition to makeup.
No7’s contouring stick can easily apply each highlighting shade quickly and effectively. Its contains as many shades as you require to enhance and define facial features and avoid layering too many textures or colours.
29.
Consumer Trial Feedback Personal Blend Foundation
Product attractiveness (out of 5)
55%
5
Gym-Proof Foundation
45%
4
3
2
1
Product attractiveness (out of 5)
18% GYM-PROOF Foundation
36%
9% 9% 27%
5
Facial Scaring Cream
4
3
2
1
Product attractiveness (out of 5)
27% 64%
5
Enhance and Define Conoturing Stick
9%
4
3
2
1
Product attractiveness (out of 5)
18% 9%
45%
27%
5
30.
4
3
2
1
Consumer Trial Feedback
Consumer Perspectives Most favourite product
36%
18%
Least exciting product
9%
Most innovative and unique product
9%
46%
Least believable
9%
45.5%
46%
9%
36%
36%
18%
9%
18%
45.5%
Personal foundation
Gym foundation
Scaring cream
Contouring stick
Following the development of our four key concept ideas, we presented them to a focus group of 11 people aged between 25- 45. We asked them to rate each of our products out of five for overall attractiveness. The product rated the highest was the personal blend foundation with 100% giving it a 4+ rating, the weakest product was the facial scarring cream, with 64% rating at 3. The Gym-proof foundation and the contour stick concepts also did well, with over 2/3’s of users rating them 4+. Interestingly, the gym proof foundation was voted both the most innovative product and least exciting. We found that 45% also found this product to be unbelievable, and many said that they just wouldn’t wear a foundation to the gym highlighting that there is a low consumer interest in the product. The facial scarring scream was received disappointingly amongst our focus group, with many feeling there were brands that are specialist in these products having a stronger product appeal, and with such a niche treatment few had any demand for it. Despite both personal blend foundation and the contour stick receiving positive reactions from our focus group, we felt the contour stick had a slightly bigger consumer “wow” as many commented on the uniqueness of the market and that they felt the product was personally exciting to them.
31.
Hierarchy of Innovation
We placed out four key concepts into a pyramid of innovation, we felt that gym-proof foundation was revolutionary as there is no product like this available on the market and the innovative foundation ingredients was the key to this product, and so the price range would reflect this being highly priced. We placed Personal Blend foundation and the Contour stick within evolutionary, as the product is already available on the market, however we are seeking to innovate the application process and so this would be priced at mid market, in line with No7. At the bottom of the pyramid we placed the facial scarring cream, as this is a technology that is already on the market, it was just a new product for No7 and so entry level pricing would be key on this product.
32.
The Product Feasibilty Product Concept
Estimated technical feasibility
Concept competitive advantage
Consumer Interest
Fits with brand positioning
Fit with brand capabilities
Risks
Gym Proof Make-up
Medium
High
High
Medium
Medium
•
Scarring Facial Creams
High
Personal Blend Foundation
High
Define and Enhance Contour Stick
High
•
Low
Low
Low
Medium
• •
Medium
Medium
High
High
• •
High
High
High
High
• •
Getting people to believe Many people may not wear make up to the gym Small, niche target audience Other specialists brands offer products Foundation market is saturated. Not very innovative, has been done before Too early for the No7 target audience Not very innovative
Assessing the feasibility of our products, we found that the most attractive product was the contour stick as it achieved a high appeal across all of our assessment variables. The least attractive is the Facial scarring cream as we have recognized the target market is too niche and the innovation is too low to be unique within the market.
33.
Volume Brick Up
Using the volume brick up assess the scale of opportunity for each of the products concepts. This chart shows the two most attractive products is the contour stick as it has the highest distribution and awareness volume despite having a lower target audience. The least attractive product is the seal & heal facial scarring cream with an volume below 10,000 making it an inappropriate investment for the No7. We also felt the gym proof make up had a disappointing market value and so we feel has little investment attraction for the brand.
34.
Actions to be Taken Winning me-too’s
Novel Winner
Personal Blend Foundation
Enhance & Define Contour Stick
Trail Gym Proof Foundation
Facial Scarring Cream
Unlikely to succeed
Breakthrough innovation
Uniqueness To conclude from all of our concept assessment we used a action to be taken table to map out our ideas clearly. We felt our strongest idea was the Contouring stick as it achieved a high trail response and has a unique position within the market, as the contouring trend grows this is a very strong position to be in for No7 and we believe has a high scale of opportunity.
35.
Target Consumer
The contour stick is aimed at females aged between 25-35. The typical woman has a busy working lifestyle, therefore has very time constraining mornings, but she does not want this to affect the way she looks. Due to this she likes to opt for products that are quick and easy, still doing the same job as any other product. She spends her free time reading beauty blogs and magazines as she is on the lookout for new products consistently. She is trend adopter, so she likes to the see the results before building the confidence to try it for herself. Having a boyfriend, means she spends a few nights in a week at his house, and she goes to the gym every morning so her make-up bag is carried around with her at all times, meaning she needs easily storable and convenient products.
38.
Consumer Feedback Following this, we decided to conduct another focus group, focusing purely on what we felt was our strongest product, the contour stick. We had 9 participants between 22-35. During this focus group our observations were that there is a divide in consumers, some of our sample had begun to use contouring, but many used products such as bronzers, highlighters and concealers as they didn’t like contour palettes as they didn’t have the right colours for them. The other half were aware of contouring, but do not to it due to feeling intimidated by the length of time and skill it takes, coupled with the concept they will do it wrong and look foolish. From this we developed a clear insight: people want to contour and would love to add it to their daily make-up routines. However, there isn’t the right product on the market for them, as all the existing palettes it seems complex and consumers feel they don’t have the time for it, making it a daunting task and something they don’t consider is viable for
“The stick would be useful as its easy and would be time efficient to use” “I’ve never seen anything like that on the market!”
“Sounds perfect as would like to contour but have no idea what kind of product to buy for it and don’t want a full on palette” 39.
The Benefits Emotional Benefits • • • •
The confident to try a new makeup technique. Pride in enhancing your own personal features. The pleasure of growing your makeup skills. Feeling less intimated by technicalities of contouring.
Functional Benefits • • •
The product is compact and easily portable for every day use. It’s personalised to your skin tone. Easy to use.
Reasons to Believe • • •
It’s a build it yourself applicator with a wide range of colours to choose from, suited to personal preferences and skin tones. No7 are a beauty expert brand. It fits in your makeup bag.
The estimated year 1 sales of £7.5 million is a very successful and credible business solution for the No7 brand, and concluding the Enhance and Define Contour Stick it is an attractive investment of NPD for Boots brand achieving the aim of appealing to a wider target audience and keeping up with trends through innovative products.
Timeplan
41.
Timeplan
42.
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Image Referencing Beauty and Makeup Courses, (2015), uploaded by the beauty company, available at: http://www.thbcbeautygroup.co.uk/beauty-therapy-diplomas/
Girl at the Gym, 2014 Uploaded by Men’s Fitness, available at http://www. mensfitness.com/women/dating-advice/picking-up-girls-at-the-gym
Girl eating Healthy, (2015) Photographer Unknown, available at: http://mp-fitness.eu/wp-content/uploads/2014/02/girl-eating-salad.jpg
Glamour Magazine Publication, (2006), available at http://imgkid.com/glamour-magazine.shtml
Couple,(2014), uploaded by the telegraph, available at: http://www.telegraph.co.uk/lifestyle/wellbeing/10567260/Happier-relationships-for-cou-
No7 protect & perfect products (2012) uploaded by Creative Review, available at:http://www.creativereview.co.uk/cr-blog/2012/october/boots-no7brand-gets-a-makeover No7 nail varnishes (2012) uploaded by Creative Review, available at: http:// www.creativereview.co.uk/cr-blog/2012/october/boots-no7-brand-gets-amakeover
Cosmopolitan magazine front cover (2013) uploaded by Cosmopolitan website page, available at: http://www.moduspublicity.com/cosmopolitan-june-isla-fisher-wears-rachel-gilbert-on-the-cover/
Woman with M&S shopping bag (2015) uploaded by: Telegraph, available at: http://www. telegraph.co.uk/finance/comment/damianreece/9559156/Its-no-mystery-why-shopperschoose-Primarks-flagship-store-over-MandS.html Clinique foundation and concealer in one (2015) uploaded by: Chic Profile, available at: http://chicprofile.com/2015/01/clinique-beyond-perfecting-foundation-conceal-
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Woman with M&S shopping bag (2015) uploaded by: Telegraph, available at: http://www.telegraph.co.uk/ finance/comment/damianreece/9559156/Its-no-mys-
Friends drinking wine (2011) uploaded by: She Knows, available at: http://www.sheknows.com/ love-and-sex/articles/826267/how-to-stay-sanewhile-single
Woman with M&S shopping bag (2015) uploaded by: Telegraph, available at: http://www.telegraph.co.uk/ finance/comment/damianreece/9559156/Its-no-mystery-why-shoppers-choose-Primarks-flagship-store-overMandS.html
Couple watching television (2014) uploaded by: Imagarcade, available at: http://imgarcade.com/1/couplewatching-tv-at-night/
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References Richardson, Y. (2015). Brand and Marketing Lecture Brief [online]. Available at: https://now. ntu.ac.uk/d2l/le/content/311127/viewContent/1453355/View Maitland, Ollie (2014) ‘Cosmetics & Fragrances-2014-Excutive Summary, Keynote.co.uk (online), Available at: https://www.keynote.co.uk/market-intelligence/view/product/11287/cosmetics-%26-fragrances?highlight=Cosmetics+%26+Fragrances&utm_source=kn.reports.search [Accessed 1 Mar. 2015]. Mintel (2015) ‘Beauty Retailing-UK Jan 2015’. Academic.mintel, Available at http://academic.mintel.com/display/715707/ MCDougall, A. (2013). What do consumers want? Mintel reveals facial skin care trends…. [online] CosmeticsDesign.com USA. Available at: http://www.cosmeticsdesign.com/Market-Trends/What-do-consumers-want-Mintel-reveals-US-facial-skin-care-trends [Accessed 11 Mar. 2015]. Mintel.com, (2015). Mintel Beauty & Personal Care forecasts Mixologiste as key beauty trend for 2014 | Mintel.com. [online] Available at: http://www.mintel.com/press-centre/beauty-and-personal-care/mintel-beauty-personal-care-forecasts-mixologiste-as-key-beautytrend-for-2014 [Accessed 11 Mar. 2015]. Libby, C. (2015). How the Trend for contouring is making waves waves in the colour cosmetics market | Mintel.com. [online] Mintel.com. Available at: http://www.mintel.com/blog/ beauty-market- news/the-changing-face-of-make-up-how-the-trend- contouring-is-makingwaves-in-the-colour-cosmetics-market [Accessed 11 Mar. 2015]. Mintel Report, (2014). UK Colour Cosmetics [online] Available at: https://now.ntu.ac.uk/d2l/ le/content/311127/viewContent/1443064/View [Accessed 11 Mar. 2015]. Mintel, (2013).‘Healthy Lifestyles’. Academic.mintel.com (online) Available at: http://reports. mintel.com/sinatra/oxygen/list/id=637887&type=RCItem#0_1___page_RCItem=0 (Accessed March 1, 2015). Trend watching.com, (2015). Beauty and personal care industry report (online) Available at: https://now.ntu.ac.uk/d2l/le/content/311127/viewContent/1443336/View [Accessed 21 Feb. 2015]. LSNglobal.com, (2015). Beauty+ (online) Available at: https://now.ntu.ac.uk/d2l/le/content/311127/viewContent/1443342/View [Accessed 28 Feb. 2015].
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Appendix 01 PEST Analysis Political
• Children in the UK are wearing make-up much younger and with an increasingly image conscious generation emerging, the UK government are calling out to the beauty industry to make changes to protect the younger generations so heavily influenced by adverts and celebrities. This means they want to reduce the amount of advertising shown in locations where children are likely to see it, and also increase the regulation of make-up and beauty advertising.
Economic
• During the economic recession in 2009, UK household budgets came under strain and consumers where forced to cut back on spending of non-essential items. However, the beauty industry maintained a strong market growth throughout, due to UK women including make-up as a essential product.
Social
• • •
Technological
•
• •
With a huge focus on health and well being, brands are focusing their marketing on the health benefits of their products, customers want products that increase the health of the skin rather than just improving it. Many brands are beginning to focus on other products which can improve the health of customers skin from the inside, including supplements and drinks which appeal to modern consumers with busy lifestyles. The rising trend for healthy cosmetics is leading to many areas of the market are looking at ways to incorporate a health benefit to their products, meaning it is no longer isolate to skincare. The growing number of smartphone and tablet owners across all ages of consumers in the UK are leading to customers being able to browse and purchase goods from anywhere at anytime. This is leading to UK consumers boycotting traditional stores and opting for online e-tailers. Retail times estimated in February 2013 that a third of online shoppers purchased beauty products online as e-tailers can offer goods at a discounted price to bricks-and-mortar stores. With the introduction of beauty blogs and social media consumers are getting the more personal advice and recommendations and as a result feel less inclined to visit a store to speak to a beauty specialist. The rise of the beauty blogger is changing the nature of the way people shop for beauty products
Environmental
• Shoppers are becoming increasingly aware of the impact their carbon footprint is having on the environment, and demanding more transparency from brands. This has lead to greater demand for more natural and organic ingredients which wont be harsh on their skin or environment. • The modern consumer is becoming increasingly concerned by the chemicals they uses in their personal care goods, leading to a rise in natural beauty goods.
Law
• In 2013, a new EU regulation was introduced which provided a standardized framework for all businesses operating within the cosmetics industry which included regulation on; strengthened safety requirements, reporting of serious undesirable effects, the use of new nanomaterial's. • From 2009 onwards, the EU banned the use of animal testing in relation to all cosmetics produced within the EU, and in 2013 it introduced a new law prohibiting the marketing of goods sold in the EU which have been tested on animals outside the EU.
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Appendix 02 Competitor Analysis Brand
What they offer?
Strengths
Weaknesses
L’Oreal
.L’Oreal group has 23 international brands such as; L’Oreal Paris, Maybelline, Lancôme, The Body Shop, Vichy, Diesel, Cacharel, Armani, Matrix, Redken, ect. . L’Oreal targets both men and women as they have products that are specifically designed for them. .They also target teenagers
.L’Oreal is the second best leading beauty and personal care manufacturer in the world. . L'Oreal has made concentrated efforts to create new markets through their Soft-Sheen/Carson African hair-care line. They have made a strategic alliance with the Japanese Shu Uemura in an attempt to gain a foothold in the rapidly expanding Asian market. . L’Oreal is known to be “scientific” beauty company as they spend 3% of their revenue on research, compared to the industry standard which is less than 2% . . L’Oreal is now pushing the color cosmetics beyond immediate BRIC markets widening their market. -Have great advertising campaigns and celebrity endorsements
. L’Oreal are mainly depended on third party retailers. . They have bigger competitors that offer the same products as they do. . The biggest weakness which a company always facing is that its decentralized organizational structure. This problem is also faced by the L'oreal. Because of the many subdivisions of this company it is not easy to operate and control of L'oreal. So, because of this the production of company getting slow down. .The margin between their cost price and selling price is comparatively low than their other smaller competitors. This means that their profit does not match with their expectations.
Clinique
. Clinique have a wide target consumer. This is because they have and create products that focuses on different skin types and age. . Clinique is owned by Estee Launder who also own 24 other subbrands. . They offer skincare, make-up, fragrances and also products for men.
. They offer customized cosmetics with individual solutions . They are allergy tested and 100% fragrance free which makes them be considered as a honest and healthy brand. . They were the first brand to introduce dermatological-based products. . They have innovative products that their competitors do not do. For example the Foundation and Concealer all in one. - They use effective advertising campaigns that reflect the brands beliefs.
. The packaging they use is very minimal and look more like medicines. . Has more products for young skin and have hardly anything for ageing skin which is a weakness as there is an increase of ageing population. .Very high priced compared to its competitors which offer discounts and pro promotions whereas Clinique do not. . The brand has more negative customer reviews than positive which is a threat for the brand as now consumers are keen on comparing products.
To achieve a greater understanding as to where No7 are in the market and how they can successfully elevate their position, key competitors were analysed by picking out their key weaknesses and strengths. This will also help to review the validity of the new product development. The beauty brand’s competitors were assessed to see what new product No7 could produce in order to be a top performing beauty brand and outperform particular brands that are currently leading in the world such as L’Oreal and Clinique. The leading beauty retailers have great advertising campaigns, a wide range of products, are known world-wide and in general are innovate brands which all help them to engage with their customers. However, No7 competitor Clinique is lacking products for the anti-ageing market which could mean a decrease in sales due to an aging population. No7, do adhere to the needs of the older generation which atomically give the brand a opportunity to be a leading brand in
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Appendix 03
Product Concepts
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Appendix 03
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Appendix 04 No7 Consumer Questionnaire 1. What is your age range? Below 18 18-24 25-34 35-44 45-54 55-64 65+
6. What do you look for when purchasing beauty products?
2. What kind of facial skincare routines do you frequently use? Make-up wipes/removers Facial washes/cleansers Day creams Cleansing and Toning Night Creams Face Masks Eye creams Hydration/ moisturising
9. Do you feel there are any products No7 lack compared to competitors?
7. What comes to mind when you think of the No7 brand? 8. What was the last beauty product you brought?
10. What is the most common way you learn about a new cosmetic product on the market? 11. How much do statements such as “clinically proven” or “97% pf women saw results”, affect your product purchases decisions?
3. What are your preferred skincare brands? L’Oreal Dove Nivea Clarins Clinique Liz Earle No7 Simple Origins Lancôme Soap and Glory 4. What are preferred make-up brands? Avon No7 Benefit Mac Revlon L’Oreal Rimmel Clinique Estee Launder The Body Shop Maybelline 5. What are your most interested in buying, Makeup or Skincare? A. Make-up B. Skincare
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Appendix 05 No7 Staff Questionnaire 1. What are your best sellers? Natural Blush Tint 2. Who do you think your main target consumer is? 15+ although we can mainly older consumers 3.What do you think are the recent trends in makeup? Contouring is a big makeup trend currently that we do not offer 4. Do you think NO7 could bring out anything new that would benefit the consumer? Contouring kit- We have brought this idea forward to the Head of Boots as an idea due to our competitors bringing out this product. Makeup fixing spray Brighter colors in their eye shadows- a lot of people say Mac makeup is a lot brighter. Nude lipstick A more natural eyebrow powder – rather than a sharp pencil 5. Who do you think are No7’s main competitors? Lancôme, Estee Lauder and Clinique.
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Appendix 06 In-Depth Focus Group about Contouring In depth focus group of contouring. 9 participants P1 Rebecca – 25, Sales assistant P2 Megan- 26, PR assistant P3 Sophie – 32, Nurse P4 Carmen – 30, Administrator P5 Bailey – 25, Beautician P6 Charlie – 26, photographer P7 Emily – 28, Full time mum P8 Amy – 32, Sectary P9 Ellie - 22, Student Do you use contouring in your make up routine? Rebecca: I Do Megan: I do, Majorly because it gives your face so much more shape. Sophie: No, it takes to long for everyday wear. Carmen: I would if I knew how! Bailey: I do on a night out, but everyday would take up too much time the over all look of doing contouring is amazing but you don’t have enough hours in the day Emily: I would do it if I knew but I’m always scared of doing it wrong. Ellie: I do! Charlie: Personally I can’t be bothered to do it everyday. Amy: I do it when I feel like spending more time on my make up and want to feel dressed up. What products do you use? Megan: I use everything Bobbi Brown and I used three different types of foundation and then a darker bronzer plus powder and highlighter. Bailey: I use sleek contouring palette Ellie: Benefit Hoola for dark areas and Light beam for highlighting. Rebecca: Smash box contour kit and Boujour bronzing cream and YSL highlighter pen. Amy: Bronzer and highlighters. 53.
Appendix 07 Sophie: If I do it I just use concealer and bronzers as the pallets don’t have the colours I need. What made you want to contour and how did you learn? Charlie: I’m forever using Pinterest and I kept seeing tutorials and the results look amazing. Sophie: Yeah, because IF its done correctly it looks amazing! Bailey: Just heard about it and watching tutorials on Youtube. Ellie: Yes I also saw it online and self-taught on YouTube. Rebecca: My friend does her make up with contour on nights out and it looks so good, she taught me. Megan: I saw it on Kim Kardashian then just looked it up online. Amy: I live with girls and they are always talking about make up and I just heard it through them.
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