NEW PRODUCT DEVELOPMENT Mhairi Nicolson, Gabriele Rybalko and Gabrielle Howarth
INTRODUCTION AIM: To innovate a new product for Tea Tree and Witch Hazel.
OBJECTIVE: To create a new skincare product which meets current consumer needs and skincare trends that the brand could incorporate into their range.
METHODOLOGY Primary Research ● ● ●
Online Survey Focus groups Shop safari
Secondary research ● ● ● ● ●
Wgsn Lsn global Mintel Euromonitor A range of reputable avenues
PRIMARY RESEARCH FINDINGS
Brand awareness
Natural Ingredients
Uses moisturiser daily
NATURAL INGREDIENTS 63% of millenial women believe it was ‘very important’ to buy natural skincare products in 2017. (Mintel, 2018)
THE TIME STRAPPED CONSUMER Western consumers are increasingly looking for multi-purpose products to minimise their skin care and make up routine as they have limited time to dedicate to their routine and are looking for ways to focus and simplify their lives. (LS: N Global, 2018)
Lucy
TARGET CONSUMER
Age- 21 Career- Journalist Gender- Female Location- Shoreditch Income- 20,000/ year
Hobbies: Likes to visit the gym Health conscious Shopping trips
Leads a busy lifestyle balancing work and a social life Likes to de-stress with a facemask and a coffee
Consumer need & desire for healthy looking, glowy skin throughout the day.
CONSUMER INSIGHTS “I want a product with the same benefits of Tea Tree that I can use while wearing foundation”.
59%
MARKET HEALTH - Beauty serum Serums are viewed and sought by consumers as a key tool for achieving healthy, glowing facial skin.
$4.1m market in 2015 (NPD Group, 2016)
KEY GROWTH DRIVERS Ageing Population, Growing Concern about appearance, Skin diseases, Growth of using natural, eco-friendly products, Demand for innovative formulations, Improves the quality of foundation.
CURRENT LEADERS Drugstore.
Premium.
Calms & minimises breakouts without dehydrating the skin.
Powerful, Breakout-fighting ingredients. Known to hydrate the skin breaking down pore-clogging debris
Niacinamide & zinc soothes redness and calms blemishes.
SUNDAY RILEY UFO ULTRA-CLARIFYING FACE OIL
Glossier super pure serum
THE SOLUTION
The Multi-Purpose Moisturising Beauty Serum
Daily Moisturiser Enrich Makeup Mix with foundation before application to enrich makeup with natural ingredients to heal and calm breakouts.
Targets spots and hydrates skin for natural healthy skin.
THE ingredients WITCH HAZEL TEA TREE
VITAMIN B3 ALOE VERA
PRODUCT CONCEPT The #1 Trend survey respondents were interested in was Natural Ingredients. ‘When targeting consumers with multi-functional skin care products it is crucial to communicate to consumers the ingredients in the product, and why they are efficient’ (LS: N Global, 2018).
THE CONSUMER JOURNEY
CLEANSE Foaming Facial Wash Deep cleanses & helps keep skin clear and healthy.
CARE
FIX
Multi-Purpose Beauty Serum
Spot Wand
Targets spots & hydrates skin for a natural glow.
Fights spots & instant action.
REWARDS Product
Tea Tree and Witch Hazel Serum
Penetration
Trial
Repeat Purchase
Volume
Distribution
Awareness
Adult Population
Target Audience women aged 18-25
% population
Potential Trialists
Number of purchase per annum
Potential total market volume
Year 1 70%
Year 1 30%
66,000,000
2,100,000
3%
5%
4
420,000
294,000
88,200
Volume (Annual number per annum)
RSP per product
Annual Value (ÂŁ)
88,200
ÂŁ5.99
528,318
RISKS RISK: Big contenders already with serums that are stocked in Boots
RESOLUTION: May not be able to be mixed with the consumers personal foundation or contain all natural ingredients. USP for TTWH
RISKS RISK: Consumers may be apprehensive to mix the serum with their foundation.
RESOLUTION: Stress our beauty serum can be worn on it’s own and it will help skin throughout the day.
41% of women who buy facial skincare are influencer by good reviews/recommendations (Mintel, 2017).
RISKS RISK: Low following on social media to market new product to consumers.
RESOLUTION: Use @Bootsuk social media with a higher following- 800k.
CONCLUSION To conclude, in order for the brand to remain in a competitive position within the marketplace innovation of new products is vital so that the brand to remain relevant and keeps up with ever-changing consumer needs that are driven by trends in the external environment. The Tea Tree and Witch Hazel beauty serum builds upon the trend of natural ingredients in skincare and consumer insights into daily protection of their skin.
THANK YOU
LIST OF ILLUSTRATIONS Natural beauty. (2017). [image] Available at: https://images3.newscred.com/Zz04MmQyOTVmZm Y5MjcwMzc0MjZlN2QyMDlkYTdjNDlkMg== [Accessed 13 Feb. 2019].
Spot Wand (2019). [online]. . Available at: https://www.instagram.com/p/BuW1mmvBaZ9/ [Accessed 01/ 2019].
Beauty serum. (2016). [image] Available at: https://i.pinimg.com/564x/0a/65/b9/0a65b9f8f9b4e57 91ba336d64998900a.jpg [Accessed 18 Feb. 2019].
Serum Drip; [online]. . Available at: http://www.bombette.com/beauty/spring-skincare-fa vorites/ [Accessed 01/ 2019].
Glossier Super Pure; [online]. . Available at: https://www.glossier.com/p roducts/super-pure [Accessed 01/ 2019].
Glossier Drip; [online]. . Available at: https://www.glossier .com/products/super -pure [Accessed 01/ 2019]. Sunday Riley UFO Serum; [online]. . Available at: https://www.anth ropologie.com/sh op/sunday-riley-uf o-face-oil-05-oz?c ategory=SEARCH RESULTS&color= 032 [Accessed 01/ 2019].
Maeda, M. and Oboshi, Y., 2018. Picture of Skincare Products [online]. NY Times. Available at: https://www.nytimes.com/2 018/02/26/t-magazine/holis tic-skincare-europe.html [Accessed 02/2019]
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