Report on Role of Packaging in Building Brand Identity
Submitted by: ‘Aradhika Gautam in Partial Fulfilment of the requirements for the degree in M.A Fashion Marketing’ 2013-2015 Submitted to: MAFMG Course Team (Department of Business) 1st May 2014 Pearl Academy New Delhi
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DECLARATION
I hereby declare that the project work entitled ‘Role of packaging in building brand identity’ submitted to the Pearl Academy, is a record of an original work done by me under the guidance of Dr. Sunita Konwar, Course Leader of Masters in Fashion Marketing, and this project is submitted in the partial fulfilment of the requirements for the award of the degree of Masters in Fashion Marketing. The results embodied in this work have not been submitted to any other University or institute for the award of any degree or diploma.
Name of the student: Aradhika Gautam Signature of the student:
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Acknowledgement Hereby I express my gratitude for the assistance and valuable guidance provided by Dr Poonam Kumar and Dr Sunita Konwar in helping me understand their respected modules and applying the learnt knowledge in this project. I express my deepest gratitude to Mr Ramesh Tahiliani, for taking part in useful decisions & giving necessary advices and guidance whenever needed. I choose this moment to acknowledge his contribution gratefully. I also express my deepest thanks to Mr Anup Sasidharan and Mrs Usha Agarwal for their guidance and support. I would also like to extend my thanks and appreciations to my fellow classmates in helping me developing the right kind of outputs for this project and who have willingly helped me with their abilities.
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Executive Summary This project discusses in detail the marketing management of the brand Forest Essentials which primarily deals with authentic Ayurveda products traditionally made by hand. These products include beauty and cosmetic range of amenities both. The brand was launched in the year 2000 by Ms. Mira Kurkarni and the first plant was set up in a small town called Lodsi in Uttrakhand. The project also studies the brand against its competitors, its branding and packaging strategies with help of brand identity prism, the retail outlay of the brand and the growth and goodwill of the brand in the industry.
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Table of Content Page No
Contents 1. Project Introduction
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1.1 Project Methodology
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2. Market Analysis
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2.1 Brand Background
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2.2 Industry Background
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2.3 PEST Analysis
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2.4 Marketing Mix
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2.5 Competitors Analysis
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3. Consumer Analysis 3.1 Segmentation, Positioning 3.2 VALS Framework
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Targeting
4. Branding Strategy
and
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4.1 Brand Structure
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4.2 Brand Value Proposition
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4.3 Brand Identity Prism
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5. Retail Strategy
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6. Sales and Distribution Strategy
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7. Promotional Strategy
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7.1 Packaging Strategy
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7.2 Corporate Social Responsibility
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8. CRM Strategy
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9. SWOT Analysis
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10. Findings and Analysis
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11. Conclusion
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List of figures Figure 1: Competitors Analysis Figure 2: VALS Model Figure 3: Brand Structure adapted from Kapferer, 2009 Figure 4: Brand Identity Prism adapted from Kapferer, 2009 Figure 5: Corporate Social Responsibility Figure 6: SWOT analysis Figure 7: Age group of respondents 6
Figure 8: Packaging preferences of Respondents Figure 9: Why respondents prefer Forest Essentials
1.
Introduction
Scope of study: The aim of the project was to study about the brand Forest Essentials since the time of its inception until today. It also focuses on studying the growth of the brand over the years in India and also globally. It also emphasizes on the concept and culture that the brand follows, its various product lines and the ‘Ayurveda’ concept in detail. And there has also been an indepth study on the efficient packaging strategies adopted by Forest Essentials and what makes it different from its competitors. Primary Objectives:
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The primary objective of this project is to study in depth about the brand Forest Essentials. Also, to keenly observe and investigate the packaging and marketing strategies of the brand and how it has created its identity in the industry. 1.1 Project methodology: In order to achieve the objective of the project, all information gathered has been analysed and applied with the concepts and theories stated in the book- Marketing Management By Philip Kotler 13th edition. Method of collecting information has been both primary and secondary in nature. In primary research, information has been collected by interacting with the consumers of the brand by means of a questionnaire and personal observation of the store, buying behaviour of people and the visual appeal of the store. Information gathered from secondary sources includes the official website of Forest Essentials, online articles, product reviews of consumers, interviews and other information available online regarding the brand. Further to study the role of packaging in building the identity of the brand has been analysed with the help of brand identity prism which gives a clear image about the essence of the brand in detail. The analysis of the collected primary information has been derived through the utilisation and application of the SPSS software with the questionnaires that have been filled by 100 loyal consumers of the brand who are mainly females (of age group 18 and above) living in Delhi. This analysis has been carried out to mainly understand how the consumers respond to the packaging of the brand and how they like the brand overall.
2. Market Analysis 2.1 Forest Essentials: Background Forest Essentials was found in the year 2000 after many years of meticulous research. With the help of trained Ayurveda physicians, doctors and experts a range of natural skin, hair and facial products was brought into existence. The Ayurveda experts believed that a holistic approach towards life was really essential towards beauty. There are no short cuts to the entire process that goes behind manufacturing of these products. They are made traditionally by hand using the local labour available in the state of Uttrakhand, India. They use organically grown cold pressed oils, pure essential oils, plant extracts, vegetable oils, herb infusions and steam distilled pure essential oils in the formulations. Their ingredients are completely vegetarian and natural in nature, the term plants includes trees, flowers, fruit, vegetables, herbs and spices of different kinds. The manner in which these ingredients of products are made are based on the Charaka Samhita, Bhavprakash Nighantu and Dhanwantari Nighantu, these are 6000 year old Ayurvedic texts that contain ancient knowledge and ideas about ageless skin, health and beauty.
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Forest Essentials uses this philosophy to produce their line of products for hair, skin and facial treatments. The age-old Ayurvedic formulations and recipes is what make it different and unique. The scholars who are able of decoding the font of the Vedic knowledge have heavily contributed in setting up their variety of products. From herbal ingredients to oil formulas and Vedic treatments, their team of experts have done a magical job in creating the kind of range Forest Essentials offers to its customers. The speciality of these products remains in the fact that they are purely based on the oldest Indian science and knowledge. An Ayurvedic treatment would typically involve lot of benefits but is not fancy and beautiful and pleasantly scented at the same time. By providing all the benefits and advantages that is expected out of an ayurvedic product, Forest Essentials manages to deliver a very special experience to the modern day woman. The brand is known to provide the best of quality and ensure well-being of a woman in her day to day life. The Inception Since the year 2000, the launch of Forest Essentials has evolved the meaning of beauty, based on the cultural foundations of the ancient times and utilizing the present technology and research methods the brand has managed to cultivate the old age traditions of beauty for the modern day woman. The concept of Forest Essentials revolves around the motive to ensure that every product that they offer should be enjoyable as well as effective. With the presence of exotic ingredients and innovative ways how the product it automatically adds on to the experience of the consumers. The fine texture of the products along with the strong aroma that sooths your mind and soul is another unique multi-sensory experience. Forest Essentials believes that every product must be as enjoyable as it is effective. Innovative formulas advance the performance of familiar and exotic ingredients. Sensuous textures and scents make for a unique gratifying multi-sensory experience. Forest Essentials began with the manufacturing of handmade soaps, which were made from oils, processed using cold pressed methods which was supposed to be rich in nutrients and essential minerals. This particular process is a traditional way that is no longer used now, with help of experts the oil is extracted by hand. In addition to this were added pure essential oils for a fresh fragrance, herbal infusions and organic fruits and vegetables. The soaps were made by hand using conventional recipes. The response to these soaps surprisingly came out to be really good than expected. This was a mark to the start of Forest Essentials which created a buzz across the country and it eventually build up a very strong presence in the market. The major unique selling qualities of the products offered by Forest Essentials are that they are not made in the factories in industrial areas, but in the Himalayas and the villages of Uttrakhand. They use local unskilled labour in and around the villages. They also use their own spring water that has therapeutic and regenerative qualities. The sample of the water was
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sent to laboratories in France which was tested and found to be rich in mineral deposits. This water is used in making all the products. The brand name Forest Essentials comes from the fact that all their ingredients are sourced from plants, trees and herbs naturally grown in the forests of Uttrakhand. Their spring water is sourced from the heart of a forest which is also said to be healthier than the other sources available. Forest Essentials has revived traditional concepts of beauty and well-being by using natural ingredients with help of age old Ayurvedic recipes. For example, Kokum Butter that is made from the Kojum tree is found in the western coastal regions of Southern India. Koku butter is a mild cream that is rich in texture than Cocoa Butter. It has a high proportion of essential fatty acids that is important for the metabolism of healthy skin. It also has the right proportion of Vitamin A, C and E that are natural anti-oxidants and important for a glowing healthy skin. Another ingredient that is exceptional in nature is 100% natural raw-cane sugar used by them which comes from a strain of sugarcane which helps in keeping the skin hydrated. The sugar has the right amount of natural molasses in its sugar crystals that helps in retaining moisture to the skin. The skin, hair and facial range of products are made using the most potent and sophisticate natural extracts from all natural resources without any synthetic or artificial compounds. The use of these ingredients is done to produce an incredible range of products. They focus at employing local labour available in and around the villages of Uttrakhand where the manufacturing is done. They also encourage women empowerment by employing women who are unskilled in nature. But this is a great way to keep them engaged and also helps in economic development of the state.
Forest Essentials leaves no stone unturned to preserve the company’s core values of purity, simplicity and sensory pleasure. They focus on serving the ultimate goal of well-being in the homes of the people who approach the brand. The products are strictly on basis of the ethical guidelines and keep up to their concept of ‘Luxury Ayurveda’. The brand in partnership with local farmers and producers make sure that the harvest is of highest quality which would mean that the ingredients being used are pure and precious in nature and therefore the products will also be finer and up to the mark. The standard of the brand being really high and promising the entire method of sourcing is very rigorous and involves a lot of hard work. The other unique characteristics that Forest Essentials swears by is that the products are never tested on animals, there is no child labour involved in the manufacturing and making of these products. The main focus of the brand is to revive traditional methods of production which is a boost to the rich cultural heritage of Indian Ayurveda recipes. They give support to local suppliers in Uttrakhand and provide employment which helps in improving the economic conditions of people in the villages around the manufacturing unit.
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2.2 Industry Environment: Global Scenario The rich glowing heritage of cosmetic and aesthetic beauty products are being used since a very long time and nowadays. It is a booming industry that has emerged to be one of the largest industries in India. With the increase in demand of beautifying substances and awareness among people about the advantages of these products a lot of brands have entered this industry. A large number of local as well as international players have extended their range in different parts of India. The secrets of ageless beauty and flawless skin have been known to Indian physicians for over six thousand years. It is one of the oldest concepts followed in India, earlier it was in use in a more traditional way whereas now it is more refined and polished. This science of health care and beauty is known as ‘Ayurveda’ or ‘Knowledge of Life’. It focuses on the use of pure herbal extracts from natural resources like spring water, essential oils which is used to nourish and improve moisture quality of skin. Ayurveda works on four levels, namely body, breath, mind and spirit. It helps in stimulating cell growth by releasing stress and pollution and thereby accelerating cell growth. It does not only help in building outer beauty but also provides harmony and peace internally to the body and mind. The experience of using Ayurveda products is so charismatic and soothing that the effects of it are reflected in inner beauty, lustrous hair, glowing radiant skin and clear shinning eye. It helps in igniting the ‘inner fire’ which is produced by the presence of a subtle substance called ‘ojas’. It is the unifying factor of three vital essences, namely life or breath, radiant energy which is present internally in the body and mind of a human being. This factor is at its highest peak at the time of birth and comes down with age. It is very vibrant and strong at the time of youth. However, it can be replenished or polished with facial and body massages, oil treatment for hair, scrubs, facial cleansers. This in combination with a healthy diet and routine, an optimistic attitude towards life prevents stress and early ageing, it also helps in leading a happy life. A combination of all these things is the major source and essence of Vedic beauty. Ayurveda is considered as one of the ancient sciences of Health & Medicine. This includes cosmetic aspects as well. Its origin is from ancient scriptures of Kalidasa and other mythological epics from which cosmetics like Tilak, kajal, alita and agar originated. The entire concept of beauty and cosmetic is as old as mankind and civilization. The major unique selling quality of Ayurveda products is that they are safe to use without any side effects or chemicals and have a long lasting impact. The Beauty Business in India is growing phenomenally with the cosmetics market growing at 15-20% annually, which is twice as fast as that of the American and European markets. According to analysis and figures given by the Confederation of Indian Industries (CII), the total Indian beauty and cosmetic market size currently stands at US$950 million and showing growth between 15-20% per annum. (Indian Retail Report, 2013) Market consumption volumes increased by 5.6% in the period 2008-2012 to reach a total of 88.6 million units in 2012. The market's volume is expected to rise to 109.6 million units by 11
the end of 2017, representing a growth of 4.4% for the 2012-2017. In 2017, the Indian makeup market is forecast to have a volume of 109.6 million units, an increase of 23.7% since 2012. (Indian Retail Report, 2013)
2.3 PEST Analysis Political Influences The Government of a country can influence a business to a great extent through political control and legislation, both of which will affect the growth of Forest Essentials. •
Cosmetics and products of personal care products are produced exclusively in small sector manufacturing units for which maximum investment of Rupees ten million is allowed for plant and machinery. These items mainly include natural essential oils perfumery compounds, hair oils and facial care products.
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Any large investment that exceeds rupees ten million, financial assistance is given under special cases, where in at least 50% investment is provided to such units.
Economic influences The economic environment consists of economic factors that affect both consumer purchasing power and spending patterns. •
Since the 1990’s this industry has seen a growth followed by a reduce in import tariffs and export duties which has helped in achieving lower manufacturing costs and improved affordability.
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There has also been a rise in disposable income of people in recent times.
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With the median age of individuals being 29 years in India, it is said to be a country with youngest population in the world.
Socio cultural influences •
There has been an increase in demand of environment friendly products with the increasing awareness of people. There is increased brand consciousness and improved fashion sense due to media exposure, influence of social media especially among the youth of the nation. Social networking websites have now become a very important tool for connecting and engaging consumers and spread brand awareness.
Technological influences •
Use of latest technology has been seen to improve competitive edge to enable efficient and higher productivity of products and services.
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Green chemistry is a also been incorporated which has helped in developing efficient ways of processing ingredients, it also helps in reducing carbon emissions and therefore allowing the manufactures to boast greener and more eco-friendly ways to manufacture.
2.4 Marketing mix Product Forest essentials on basis of its concept of ‘Luxurious Ayurveda’ has a vast product line which includes products on basis of category, fragrances, ‘dosha’ or concern, beauty regimes, bestsellers and mother child care products. The products are mainly meant for facial, skin and hair and body care. They also have a unique category of well-being products which includes burner oils and stress relief oil. The speciality of these products lies in the fact that they are made from natural herbs and plants. They also have a range of miniatures for people who want to first try a particular product and then become loyal towards it. They also have a made to order facility where they make customized products for people on basis of their requirements upon personal consultation with doctors and expert technicians and physicians. Very recently they have come up with an entire range for men which include essential hair n facial products.
Price The price range of the products is considerably on the higher side. The major reason behind high prices is that they use natural extracts from the forests in the Himalayas in Uttrakhand which involves a lot of manual labour. They also ensure the inputs of well learned experts, doctors and medicine physicians which adds on to the product quality, hence the price. The production involves a lot of processes therefore the cost of manufacturing is also high. For example a hair cleanser bottle of 200 ml would cost Rs. 775. A gift hamper would cost somewhere around Rs 2,950 to 4,500 depending on the kind of products it includes. This can also be customized in nature.
Place: Forest Essentials has its presence in all major cities across India, namely, Bangalore, Chennai, Chandigarh, New Delhi, Ludhiana, Surat, Mumbai, Hyderabad, Jaipur and Pune. It is slowly penetrating into tier two cities. The brand is even more approachable to people since it has its presence online which enables people to place an order from any part of the country. The brand also has link ups with famous hotels like the ITC group of hotels and the Oberio offers Forest Essential products to their guests. 13
Promotion: Forest Essentials does not indulge in very rigorous methods of advertisement and promotion. Although it has a very beautiful television advertisement that was launched last year to give a quick glance to people of what the brand is all about. They managed to do this perfectly and received a very good response. Only recently they sponsored ‘Koffee with Karan’ season four which helped them in spreading awareness about the brand in a very subtle way.
2.5 Competitors Analysis Basis
Forest Essentials
Product
Luxury Ayurveda, Products are from plants, herbs and trees
Kama
Ayurveda products for hair, skin and body care
The Body Shop
Body shop sells organically grown body Products
Price
Medium-high range. For Low-Medium range. For Medium-High range. For example, hair example, hair cleanser would example, hair cleaner costs Rs.cleanser costs Rs. 795 cost Rs. 775 550
Place
Present in major cities across B2C marketing, Globally Globally distributed, All stores run on India, B2C marketing, tied up distributed, used in Hotels like franchising basis, B2C marketing with ITC and Oberio Hotels. Neemrana and various spas.
Promotion
TV commercial, Coverage in international Sponsored Koffee with Karan magazines eg, Vogue, Elle, Harpers Bazaar
Limited advertisement and promotions
Figure 1: Competitor Analysis
3. Consumer Analysis:
Segmentation: The consumers of Forest Essential mainly includes major chunk of female population who is beauty conscious and concerned about their well-being. Also people who want to indulge in use of authentic Ayurveda products and pamper themselves at the same time. The analysis of the consumer of Forest Essentials has been done on the following basis: •
Geographic segmentation 14
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Demographic segmentation
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Psychographic segmentation
Geographic’s of Forest Essentials Forest Essentials has its stores in major cities across India. This makes it easily accessible to people who are loyal towards the brand. In cities like Bangalore, Chennai, Delhi, Mumbai and Pune it has more than one store which depicts the popularity of brand among the people. Widespread in Northern, Southern, Eastern and Western zones of India Demographics of Forest Essentials It focuses on women above the age of 20 who are fashion conscious and belong to well off upper middle class families. The annual income of these families is somewhere around 10-15 lakhs per annum or more. Psychographics of Forest Essentials Forest Essentials mainly target classy women who are really aware of what kind of skin texture they have and what will suit them the most. They are uncompromising on ‘Value for money’; they are ready to pay a good amount of money for something they feel is worth buying. They are image conscious and strongly care of what society thinks of them. At the same time they are deeply connected to their ethnicity and have a love for the nature.
Figure 2: VALS Model Source: Kotler & Keller marketing
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One of the most popular commercially available classification systems based on psychographic measurement is VALS framework. It categorises consumers into 8 different types based on a set of psychological traits and key demographics that drive consumer behaviour. It determines how the person expresses himself as a consumer.
Experiencers and Believers The customers of Forest Essentials can be described as experiencers as they are young modern day women who are ready to experiment with themselves to know what suits them the best. They are also really conscious about their body and want to use the best products for their skin and well-being of themselves. These women also are luxury lovers and do not mind spending a considerable amount on something that is really worth that much for. At the same time the costumers of Forest Essentials are believers, they are deeply rooted with the age old traditions of their country. They believe in the having the best of everything hence they indulge in buying these products.
Targeting Forest Essentials targets its market with values. These values come from the concept that the brand revolves around, that is ‘Luxury Ayurveda’. The quality of organic and natural products that encourages environment sustainability and social responsibility is what attracts the customer. It mainly targets women belonging to upper middle class above the age of 20 and those who desire fresh, chemical free organic beauty. Positioning The fact that consumers now a days around the world are keen and more interested in beauty products that depict natural heritage. Forest Essentials ever since its inception has positioned itself really strongly in the market among its competitors. It started with an investment of Rs. 2 lakh at the time it was set up and now it is a makes a business of above 100 crore. The retail presence of the brand has also enabled it to attract people from all parts of the world.
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Branding strategies of Forest Essentials
Brand Structure The structure of a brand basically includes all those features and characteristics of a brand that builds its entire foundation. It includes all those aspects that builds up the brand and 16
makes it different from its competitors. The American Marketing Association defines a brand as “a name, term, sign, symbol, or design, or a combination of them, intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors� (Kotler, 2009). The major structure of a brand is made up of three major attributes, namely, brand concept, product and services and brand name and symbol. (Kapferer, 2009)
Luxury Ayurveda, Using natural ingredients only
Brand concept (value proposition)
Simple and subtle logo, Brand name is a reflection of its concept, appropriate colour scheme
Hand made products, fine quality, complete use of natural ressources
A brand that deals in Ayurveda products Brand name and symbol Figure 3: Brand Structure adapted from Kapferer, 2009
Product or service experience
itself is in a profitable niche. Like every other brand Forest Essentials also has its Brand system of Forest Essentials adapted from (Kaferer 2009) core values and certain concepts that makes it different from other brands. Vatta, Pitta and Kapha are three words that define the balance of life according to the ancient Indian philosophy of Ayurveda. It is said that these are three conditions that need to be in the right kind of proportion in a human body 17
to ensure a good quality life. This brand focuses on providing the luxury of Ayurveda recipes of products to people seeking for such services. Their customers swear by their products and make sure that they keep coming back to them and that’s how they build a strong base of loyal customers.
The concept of the brand was originated by Mira Kulkarni a resident of a small town called Tehri Garwal in Uttrakhand. She started this venture by casually distributing self-made ayurvedic handmade soaps to a few friends. This start luckily worked out so well that it received an over whelming response, this led to expansion of production and thus became a brand. Forest Essentials ventured into the overseas market one and a half year ago, this helps them supply to various hotels and spas building their identity and spreading awareness about themselves. Brand Value Proposition Value proposition is an essential part of the business as it acts as a link between the brand and the customers. It is the tool that can be used by the brand to communicate what it stands for, how it is different from and is better than its competitors. “A brand value proposition is a statement of functional, emotional and self-expressive benefits delivered by the brand that provide value to the customer. An effective value proposition should lead to a brand-customer relationship and drive purchase decision� (David Aaker). Forest Essentials has worked really hard and carried or meticulous research to achieve what their concept and culture is all about. It aims at providing the best quality of products and services to their customers so that they are completely satisfied and convinced to come back to their store again and again. There are numerous aspects that make Forest Essential different from its competitors; the product line itself is very unique and attractive at the same time. The visual appeal at the stores, the packaging of the products, the aroma of the brand at their stores is so strong that it captivates the attention of the customers for a prolonged period of time.
Brand Identity Prism This prism is made basically to understand how the brand resonates directly with the customers, the emotional values, culture, needs and demands of the consumers. It depicts the identity of the brand and it describes the main essence of the brand with which the customers can easily relate to. The brand prism has six facets that define the nature of a brand, all these facets are interlinked with each other, starting from Physique, personality, culture, self-image, reflection and relationship. Physique: This aspect includes all the tangible aspects of a brand that comes to consumers mind when they think of Forest Essentials. In this case it is the packaging of the products
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with the golden cap, Indian natural ingredients, the packaging done in bright and dark colours, the golden tree which is the logo and wooden interiors. Personality: It depicts the characteristics of the brand as if it was a human being. It can be described as a sophisticated, elegant and a modern day woman who has a love for luxury and enjoys indulging in it once in a while.
Culture: This mainly defines the set of values and ethics that forms the foundation of the brand. All the activities and products that are produced by this brand are based on its core values and culture. Forest Essentials has a very rich cultural background and its entire concept of Luxury Ayurveda is the main essence of their culture. They are deeply associated with Ayurveda and hold immense pride is renewing Indian ethnicity. Self-image is the manner in which the customer of the brand sees them self. This usually gives its customers a feeling of being natural, elite and prestigious. Reflection is basically views of a person towards a particular brand. The way how they feel for the brand and when they see others using the same. It reflects a rich Indian woman who is simple yet elegant. Proud of her rich heritage and is conscious about her beauty and wellbeing. Relationship: The relationship established with the brand is that it is trustworthy, reliable and loyal as far as its ethics and product quality is concerned.
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Logo, packaging, visual appeal
Loyal, reliable EXT ER trustworthy and NAL IZA TIO N
Sophisticated, elegant, pristine, natural, delicate
INTERNALIZAT ION
Pride in Indian ethnicity Deeply rooted with its culture
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I feel natural Simple yet beautiful, modern day woman, self-conscious
I feel elite I feel prestigious
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Figure 4: Brand Identity Prism adapted from Kapferer, 2009
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5.
Retail Strategy
The way in which the retail stores of Forest Essentials have been done is worth appreciating and really different than that of their competitors. The visual appeals of the stores are done in a way that clearly represents the philosophy of the brand. The Ayurveda heaven Forest Essentials has adopted a very unique and an exclusive way of putting forward the brand in a way that clearly talks about their rich culture and their concept. For example, their store at the Khan market in Delhi has been designed by giving it an artistic turn. It is a new design layout that has been done there, which is neat, cluster free. The flooring, cabinets and shelves are white which gives a nice feeling as you enter. White is also the colour of purity that goes really well with their concept. There is plenty of natural day light present coming through the door, the entire passage gets ethereal glow that gives a fresh look to the store. The interiors of the store are inspired from Rajasthani and Mughal architecture; there is stained glass and lattice on the ceiling making the store look much more authentic. The second portion further inside is even richer, the shelves and cabinets are done in warm walnut wood. A beautiful looking chandelier casts enough light on the products making the store look nice and bright. The cabinets are adorned with ancient sayings from Vedas engraved on it. The mirror on the ceiling is also inspired by the Mughal style. Further ahead are a comfortable two-seater sofa and the billing counter. Another striking feature is the paintings of Raja Ravi Verma which have sensuous, sultry yet simple woman amidst the beauty of nature. Above everything is fresh aroma of the store which contains of fresh fragrances of their products. The visual appeal itself depicts a lot of interesting facts about the brand which adds on to the experience of the customers of the brand. This has contributed majorly in building a very strong brand identity in the industry.
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Sales and Distribution Strategy
Forest Essentials is based on age old ideas and practices of Ayurvedic knowledge that has been researched upon and put together by Ayurveda experts. Their main focus was to revive the traditional ideas of beauty and well-being. The best part about these products is that they do not only advise the right ingredients but also the appropriate usage and processes that will show the right results. For people who are entering the Forest Essentials store for the first time and are unaware about their varied product lines, there is an expert team of staff. They have been rightly trained to identify one’s skin type and recommend the best suited products. These products have been tried and tested over the past centuries and their benefits like cleansing; lightening, brightening, toning and de-stressing have been recognized. Their staffs 22
have the ability to guide the customers in case they need help. Estee Lauder became their strategic partner in the year 2008 after a prolonged process of quality check. To maintain the right kind of standards Forest Essentials collaborated with Estee Lauder to bring Ayurveda beauty care.
7.
Promotional Strategy
7.1 Packaging Strategy New Delhi’s Green Goose Design rebranded the entire visual identity if Forest Essentials from packing, posters, window and store displays, website, airport displays, labels, carry bags, backlit board and other collaterals. Their approach focused on redesigning the packaging that they had before which was good too, but this one gave a completely new look to the brand, it made it look more fancy and beautiful just like its concept. This was done to revive the traditional elements of India with a pinch of design, modernity by playing with a good range of colours. The packaging of Forest Essentials is appreciated by one and all; the customers are actually fond of the way they do their packaging. They believe that it adds on to their experience and make it fuller of life and beauty. The redesign concept was inspired by the exquisite tradition of Mughal miniature is of India. The ingredients are completely natural in nature and are illustrated individually by hand with specific colours that enable in right kind of shelf placement and product recognition. The illustrations and package design were done by marketing and creative heads of the company Mr. Manav Sachdev and Mr. Anrajan Pegu. The packaging of the products comes in a thick plastic tub with a golden colour lid, thought the tub is plastic in nature the entire look of the packaging feels very luxurious at its sight. With products like body cleansing paste, or body scrub they provide a beautiful wooden spatula which looks more like a dessert spoon to scoop out the product in a neat manner. The carry bag is made up of paper of thick good quality that has the logo and combination of subtle colours imprinted on the paper bag. It comes in various sizes according to the type of product being sold to the customers. The speciality of packaging is that the staff while selling out a product to the customer wraps it in a butter paper of fine quality sprays a mixture of rose water, spirits and essential oil on it along with some fresh rose petals, packs it and gives it away to the customers. The reason behind this kind of packaging technique is to deliver the product in the best manner possible which creates a good experience for the customer so that 23
the fragrances stays with them for some time just to make them feel nice about the brand and their choice of products. The main aim to have this kind of packaging and visual environment of the store is to give people a first-hand experience of a beautiful store that indulges in reviving age old Indian traditions. It gives a unique shopping experience to its customers so that they are tempted to come back, shop again in future and eventually become loyal towards the brand.
7.2 Corporate social responsibility CSR for Forest Essentials has been the cornerstone of success from the time of inception. It has been in the DNA of the company to give back to nature, what we take from it which is also the very foundation of ‘Ayurveda’.
Figure 5: CSR of Forest Essentials
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The Corporate Social Responsibility at Forest Essentials has been in the DNA of the company. It sincerely believes in giving back to the nature as much as it takes. This is the very basic foundation of ‘Ayurveda’. There are three major approaches that are followed by the company; a beautiful environment, economic empowerment and social contribution. These objectives of the brand are achieved by adopting sustainable agriculture practices. They also follow environment friendly manufacturing and transportation methods. They focus on conservation and renewal sources of energy generation and aims at renewing the community around through local employment of labour and suppliers. By following ecofriendly waste management practices they achieve their aim of creating a healthy environment. The first manufactory for Forest Essentials was set up at Lodsi, Uttrakhand. That is when their entire process of establishment began. The factory is built amidst the surroundings of Himalayas a huge range of products that are labour intensive in nature. The set-up of Forest Essentials ensures social and economic empowerment to the people around which is another way how they have strengthened their existence country. At Lodsi, they focused on empowerment of women which help them in being self-sufficient also by opening their individual bank accounts. Additionally, the brand has also helped in building the infrastructure of the village by building schools to encourage education and also by providing source of clean drinking water in the nearby villages. The acceptance of the brand across the country led to their expansion to their second factory in Haridwar, Uttrakhand. This unit has a world-class manufacturing facility with pharmaceutical facilities and high production standards. It is said to be Green factory with lush green environment. The manufacturing expert’s deliver a sophisticated product to meet the expectations people have with the brand. Their team of experts aim at reducing carbon emissions. Further they focus completely on using renewable sources on their products. They have their presence in all major cities in India. The stores of Forest Essentials are located in Bangalore, Chandigarh, Chennai, Hyderabad, Ludhiana, Jaipur, Surat, Mumbai, New Delhi and Pune. There is a considerable strong presence of brand across the country. The online presence of the brand has made it even more accessible to people who are located in cities where they don’t have a store yet. They deliver their products for anything more than rupees three thousand at the doorstep of the people. This is how they have created a stronger data base of consumers enabling the brand gain popularity and recognition at the same time.
8.
Customer Relationship Management
Forest Essentials though provides a very wide range of efficient product lines yet the brand provides ‘Made to order’ facility which provides solution to any kind of problem that the customers are facing. This basically provides an opportunity to customers to fill up a form online, mentioning their conditions and preference, what kind of product they want, what 25
expectations they have, their ailments or problems and any other specific requirement that they have. It is then that the brand creates a special formulation with the right kind of ingredients and finally delivers the product to the customer. In this case, Forest Essentials uses original and personalized ingredients that have not been unused otherwise in the existing collection of the brand and this is how a customized product is created to treat that particular problem. This is supposed to be a very pampering experience for the customers and the same time treating their problem areas effectively. Also, this particular product is never kept in any of the stores as display for sale. The price is available only on request. Another way how the brand has managed to engage the customers and build a firm bond with them is ‘Book a session with their doctors’ this is done to ensure that the customers are choosing the right kind of product considering their skin, body and hair type. This has added on to their experience and therefore Forest Essentials never fail to impress their customers with good quality service and products.
9.
SWOT Analysis
Strengths The major strength that Forest Essentials has is that the ingredients are sourced from plants, herbs and trees that are grown in forests of Uttrakhand. This makes the products are processes completely authentic in nature. They use age old Ayurveda recipes to make the products and their quality cannot be compared to any other brand that deals in Ayurveda. The water used in process of their manufacturing is also sourced from their forest which is rich in minerals and other essential compounds. They also have a website that offers a facility wherein people can choose the product they want and place an order of anything above rupees two thousand and ninety nine. This helps them to interact with the community with people who cannot directly approach the brand. Weakness: The brand has a limited product line; they have not made any extension on their product line in a very long time. As against the competitors who are doing really well in terms on expanding their product lines. Also, their advertising and promotion activities can be done in a more elaborate manner. Since there is a lot of competition, they can do a lot better in terms of spreading awareness about their brand and its concept. Opportunities: There lies an immense scope of growth and opportunities in this field and industry since people now a days are becoming more conscious for their well -being. There has been a growing passion for fresh and healthy products for skin, body and hair. Beauty products have now become essential purchase for people and luxury products have also become must have’s 26
for a lot of people with an increase in their purchasing power. The new range of male products will attract new male customers therefore increasing their customer base. Threats: The competitors of Forest Essentials, mainly The Body Shop and Kama both are equally good when it comes to the kind of product quality that they offer. It matters to Forest Essentials to keep up to the expectations of the people. Since the way how people have started viewing beauty products is changing and their purchases are based on the values that the brand offers. It is important for them to stand for what they preach.
`
SWOT Analysis Strengths
Weakness • Authentic products and processes • Ingredients are sourced from
• Limited product lines • Advertising and promotion
plants, herbs and trees grown in forests • Spring water is sourced from their forest which is rich in minerals • Online delivery Opportunities
activities not very attractive as compared to global players
Threats
• Growing passion for fresh and
• Presence of competitive brands
healthy products for the skin, body and hair • Range of male grooming products
like Kama and Body Shop • Increasing cost of labour
Figure 6:SWOT analysis of Forest Analysis
10. Findings & Data Analysis
The data analysis and results is done through the collections from the survey. The entire process of data analysis has been done through the medium of questionnaires. This was done by collecting the responses of 100 odd females. And later on the basis of the responses evaluation was prepared and Hypothesis testing was done using Chi square test. 27
Survey Description The survey was designed keeping the objectives of the project in mind. The major aim of this survey was to find out the customers feedback on the packaging design of the brand Forest Essentials, how much are they able to relate with the packaging strategy of the brand and their overall response towards the brand. The survey had a total of twelve questions which was divided into two sections- dependant variable and independent variable. The responses to the survey was collected by distributing it to female customers of Forest Essentials, some of them were known consumers others were unknown loyal consumers at the Khan Market store, Pacific Mall store and the Ambiance Mall store in New Delhi. Respondents Demographics The respondents of this survey were all females since the brand is more profoundly accessed by the female population. The main age group that helped in identifying the target audience of the brand was between the age group of 16-24 and 25-34. Most of the respondents were either college going girls or ones who were working and others were newly married house wives.
Figure 7: Age group of respondents
28
Considering the age group factor that influences the customers to indulge in making purchases from the brand, as the recognition value the number of people who have rate the colour of the package design as the most attractive is as follows:
Figure 8: Packaging preferences
29
The reason why females prefer buying from forest essentials is primarily because of its excellent packaging for girls between the age group of 16-24, for females between the age of
30
25-34 and above that age it is more about product quality and luxury Ayurveda.
Figure 9: Why respondents prefer Forest Essentials
31
11. Conclusion
Since the time Forest Essentials was launched in India, it has come considerably a long way and achieved much more than what was expected. It started with a capital or Rupees two lakh and now does a business of Rupees hundred crore. It has a very strong presence in India and now even internationally. The brand is currently competing with brands like Lush and The Body Shop to a very great extent. All these brands, like Forest Essentials offer natural and organically based products that are explicitly made of Ayurveda beauty and body care recipes. Forest Essentials has managed to create a strong position for itself in the market by positioning itself strongly on the basis of the aesthetically rich culture that it imbibes. It also has achieved in establishing a strong brand identity by creating an incredible experience for the people. This has been possible only by the unique culture that it has and the fact that they strive to revive the Indian traditional concepts of beauty. As a part of findings, a survey was conducted with help of a questionnaire as a part of primary research. Where in, a sample size of 100 was taken, this survey was explicitly done among the women in Delhi. Most of them being above the age of 20 till 45, some being students and rest being either house wives or into some kind of service or job. As seen from the findings, it can be concluded that girls and women who are brand loyal towards the brand Forest Essentials are aware about the fantastic packaging that it does, they appreciate it and also view it better than the competitors of Forest Essentials. The younger lot of respondents recognize the packaging with the colours of the product whereas the age group of 25 and above feel product information is what captivates their attention first. When asked to rate the package design of the brand most of the respondents gave a positive feedback by either rating it as excellent or good.
32
Bibliography •
Beauty luxury brand Forest Essential transforms retail experience (2013, July 15) Retrieved from http://customerclick.in/2013/07/15/beauty-luxury-brand-forestessential-transforms-retail-experience/
•
The Himalayan inspiration of Forest Essentials (2007, October 29) Retrieved from http://www.specialchem4cosmetics.com/services/editorials.aspx?id=2491
•
Forest Essentials Retail Packaging Illustrations Retrieved from http://www.manavsachdevdesign.com/?portfolio=forest-essentials\
•
Forest Essentials- Balance Beauty (2013, July 24 ) retrieved from http://www.luxuryfacts.com/index.php/sections/article/3761
•
You & I, Forest Essentials (2013, June 5) retrieved from http://www.youandi.com/FOREST_ESSENTIALS.aspx?PAGE
•
Product by category retrieved from http://www.forestessentialsindia.com/products/bycategory.html
•
Forest Essentials: An experience and an interview (2013, December 26) retrieved from http://www.lookinggoodfeelingfab.com/2013/12/forestessentials.html
•
Deep Rooted Beauty: Mira Kurkarni, MD, Forest Essentials (2010, August 22) retrieved from economictimes.indiatimes.com
•
Indian Retail Report (2013) Business's Monitor International.
33
•
Beauty on the go, (2008, November 7) retrieved from www.indiatoday.com
•
Kaferer, J. N. (2008) New Strategic brand Management. United Kingdom: Les Editions d’Organisation
•
Kapferer, J. N. (2008) The New Strategic brand management. USA: Les Editions d’Organisation
•
Kotler, e. a. (2009).Marketing Management. India: Dorling Kindersley Pvt. Ltd
•
Beauty on the go, (2008, November 7) retrieved from http://indiatoday.intoday.in/story/Beauty+on+the+go/3/19449.html
•
Estee Lauder picks up stake in Forest Essentials, (2008, July 19) retrieved from http://www.thehindubusinessline.in/bline/2008/07/19/stories/2008071951530500.htm
34
Annexure 1 Survey for Forest Essentials 1) What is your age? a) 16-24
b) 25-34
c) 35-44
d) 45 and above
2) What is your occupation? a) Service b) Student c) Own Business d) Other: ___________ 3) Income / Pocket Money (per month)
35
5000-10000 10001-15000 15001-20000 20001-25000 25001 and above 4) What comes to your mind when you think of Forest Essentials?
5) How often do you buy from Forest Essentials? a) Less than once a month b) Less than once in 6 months c) Less than once a year 5) Why do you buy from Forest Essentials? Brand Image Packaging Product Quality Luxury Ayurveda 6) Do you think the packaging of Forest Essentials is different from that of its competitors? a) Yes b) No c) Can’t say 7) Please, answer questions by choosing the best alternative for you (only one).
36
a) What first caught your attention? •Graphics/ Image •Colour •Product information •Shape of the package b) How did you recognize the package of the product? •By brand image •By colours •By name of the product c) How would you rate the design of this product? •Excellent •Good •Fair •Poor 8) Which product category do you purchase the most at Forest Essentials? •Body Care •Facial Care 37
•Hair Care •Wellness •Fragrances 9) Do you have a favourite Forest Essential product line? If so, which one? •Honey & Vanilla •Turmeric •Neem & Saffron •Indian Rose •Bitter Orange •Jasmine •Aloe Vera •Bengal Tuberose 10) Have you visited Forest Essentials website? •Yes •No If yes, how frequently do you visit the website? •Often •Occasionally •Rarely •Never 11) When you use Forest Essentials what does it make you feel about yourself and what role does it play in your life?
12) What products or services you would like to see as an extension of Forest Essentials?
38
Annexure II
Crosstab Count buying rate
age
Total
less than once a
less than once
less than once a
month
in 6 months
year
16-24
16
18
12
46
25-34
11
14
9
34
35-44
5
8
7
20
32
40
28
100
Total
Crosstab Count How is packaging different yes
age
no
Total
can't say
16-24
29
4
13
46
25-34
23
2
9
34
35-44
16
1
3
20
68
7
25
100
Total
Crosstab Count why FE brand image
age
Total
packaging
Total
product quality
luxury ayurveda
16-24
12
22
7
5
46
25-34
1
3
16
14
34
35-44
5
0
7
8
20
18
25
30
27
100
39
Crosstab Count Feedback on packaging graphics and
colour
Total
product info
shape
image
age
16-24
6
23
15
2
46
25-34
11
7
16
0
34
35-44
5
2
13
0
20
22
32
44
2
100
Total
Crosstab Count recognition value brand image
colours
Total name of the product
age
16-24
10
8
28
46
25-34
7
3
24
34
35-44
2
3
15
20
19
14
67
100
Total
Crosstab Count design feedback excellent
age
Total
good
16-24
22
24
46
25-34
19
15
34
35-44
12
8
20
53
47
100
Total
Annexure III
40
41
42
Bibliography
•
Beauty luxury brand Forest Essential transforms retail experience (2013, July 15) Retrieved from http://customerclick.in/2013/07/15/beauty-luxury-brand-forestessential-transforms-retail-experience/
•
The Himalayan inspiration of Forest Essentials (2007, October 29) Retrieved from http://www.specialchem4cosmetics.com/services/editorials.aspx?id=2491
•
Forest Essentials Retail Packaging Illustrations Retrieved http://www.manavsachdevdesign.com/?portfolio=forest-essentials
from
•
Forest Essentials- Balance Beauty (2013, July 24 http://www.luxuryfacts.com/index.php/sections/article/3761
from
•
You & I, Forest Essentials (2013, June 5) http://www.youandi.com/FOREST_ESSENTIALS.aspx?PAGE
•
Product by category retrieved from http://www.forestessentialsindia.com/products/bycategory.html
•
Forest Essentials :An experience and an interview (2013, December 26) retrieved from http://www.lookinggoodfeelingfab.com/2013/12/forestessentials.html
•
Deep Rooted Beauty : Mira Kurkarni, MD, Forest Essentials (2010, August 22) retrieved from economictimes.indiatimes.com
•
Indian Retail Report (2013) Business's Monitor International.
)
retrieved
retrieved
from
43
•
Beauty on the go, (2008, November 7) retrieved from indiatoday
•
Kaferer, J. N. (2008). new Strategic brand Mangement. United Kingdom: Les Editions d’Organisation
•
Kapferer, J. N. (2008). The New Stratgeic brand managament. USA: Les Editions d’Organisation
•
Kotler, e. a. (2009). Marketing Mnagament. India: Dorling Kindersley Pvt. Ltd
•
Beauty on the go, (2008, November 7) retrieved http://indiatoday.intoday.in/story/Beauty+on+the+go/3/19449.html
•
Estee Lauder picks up stake in Forest Essentials, (2008, July 19) retrieved from http://www.thehindubusinessline.in/bline/2008/07/19/stories/2008071951530500.htm
from
44