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YourGoodSkin New product development
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Ethics Clause We can confirm that this work has gained ethical approval and that we have faithfully observed the terms of the approval in the conduct of this project. Signed............... ............... ............... ............... ............... Date
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Word Count: 3,674
Max Youd N0741426 Harriet Exton N0733000 Olivia Thomas N0733317 Maddie Bray N0734470 Sam Read N0754764
CO NT EN TS
.Introduction .Methodology .Aims & Objectives .Brand Architecture .Brand Health .Positioning of Competitors .Target Audience .SWOT .ANSOFF Matrix .PESTE Analysis
Big Picture Beauty Trends .Drive in Technology .Multitasking Products .Insights from Consumer Attitudes .Latest Technologies .Wider Consumer Landscapes .Skincare Trends
Brand Innovation Strategy
.Concept .Key Ideas Hierarchy .Idea Generation Box .Subscription Boxes .Tailoring of the Subscription Boxes .Tutorials .Recycling Scheme .Travel Size Products .The Product/Packaging .What is inside? .Price .Product SWOT .Potential Risks .Conclusion
Introduction
YourGoodSkin is a skincare brand aimed at 30-45 year old women which seeks to help its customers achieve healthy skin. There are a wide range of products aimed at all different skin concerns for example oily, dull, ageing and dry skin issues. Looking at current skincare trends and current consumer buying behaviour, the aim of this report is to launch a new, convenient and innovative product for the brand.
Research for this report was gathered via both primary and secondary methods. For primary research an online survey was conducted, which gathered one-hundred responses. The purpose of this was to gather a broad insight on consumer needs into the skincare market. In order to gain a more specific viewpoint of the target consumers needs, four interview were conducted, three of which on competing brands store assistants and one on a specific target consumer. This provided a range of insight on purchasing behaviour and buying motives. For secondary research methods, data was gathered via online sources including reports such as LSN: Global, Mintel, news articles and case studies on latest beauty trends. Secondary research provided a much broader but definitive viewpoint of current beauty trends and provided a good starting platform for innovation ideas.
Methodology
YourGoodSkin
Brand architecture
The boots brand stocks over 180 skin care brands alone. The most popular of which include No7, Soap and Glory and Clinique. No7 (launched in 1935) is a trusted and well-priced brand. Top sellers include Protect & Perfect Intense Beauty Serum, Lift & Luminate Day & Night Serum and anti ageing products. YourGoodSkin is not placed on the featured brands page or displayed in store merchandising. However, their products were at the top of the shelves, making it easier to spot when browsing the shelves in comparison to other brands. The products are split up into four categories: Cleanse, Balance, Moisturise & Care and Boost. Their best selling products include: Balancing Skin Concentrate, Anti-Oxidant Day Cream and Provitamin Overnight Cream. Together, the four categories claim to: ‘Be gentle yet effective cleansers designed to work in harmony with your skin.’ ‘Target visible skin imbalance with our clinically proven Balancing Skin Concentrate.’ ‘Support the healthy appearance of your skin with our day & night moisturisers that provide 24hr hydration, plus lotions for specific needs.’ ‘Help with shine, hydration and the appearance of blemishes to restore skin to it’s natural balance.’ (YourGoodSkin, 2019)
FOR ALL SKIN:
“A clear regimen of products designed to help restore healthy looking skin. First select your favourite cleansing format from our range of daily & weekly cleansers. Secondly, restore balance to your skin with our Balancing Skin Concentrate designed to improve five key signs of healthy looking skin. Finally moisturise & help protect your skin with our day & night creams. All our products are suitable for all skin, even sensitive.� (YourGoodSkin, 2019)
Brand positioning and competitors YourGoodSkin is positioned in a very saturated beauty and skincare market and is sold into a mass market as being sold in Boots, on the high street, aiming to reach the demographic of matured women with problemed skin. YourGoodSkin is between being a scientific led or natural brand in terms of their ingredients. The brand competes more alongside competitors involved in using natural ingredients such as The Body Shop, Yes To and The Ordinary. Doubtedly, YourGoodSkin lack in advertising their innovative and revolutionised products, therefore should consider moving the brands label to somewhat closer to the natural and organic side of the axis on the brand position map. In addition to this, from the brand positioning map, it is evident that the majority of YourGoodSkin’s competitors apply to all genders, however YourGoodSkin’s target market is females; this shows a possible gap in the market to expand into.
The core consumer for YourGoodSkin is women, aged 30-45, based in the UK, who care about the appearance and overall feel of their skin. As our feedback from our research suggests, this group in particular prefer products such as moisturisers and cleansers, as well as their main concern for skincare being ageing better (lines and wrinkles). YGS’s core consumer tends to have personality traits such as being inclusive and clean, with super cultures such as mums and skincare enthusiasts. The needs for this group are mainly age better skin and moisturised skin, with a keen interest in organic and natural products over scientific based.
High end
Natural
Science led
High street
Pen portrait
Mum On-the-go
Driven
Environmentally conscious
Looks after herself Modern
Proud
Sociable Self-conscious
Family orientated
Busy
SWOT
Research methods a
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d
rationale for design
Big picture beauty trends The current trends that has shaped the beauty industry as of recent have been largely down to the advancements in technology which has allowed for products to accomplish multiple positive effects to the consumer but also to be ethical and natural, to incorporate into people ethics and lifestyles.
Drive in technology The sudden surge in technology advancements in recent years has infiltrated the beauty industry, making routines more personalised, easy to use and give better results. Such technologies range across the whole of the industry from making it easier to see what products suit you best, to matching foundation to your skin colour, to improving the ingredients to giving the best possible results. For example, L’Oreal Makeup Genius, a virtual makeup app that allows you to try on makeup and new looks before purchasing. The app also includes tips, looks and how-to’s from professional makeup designers. Making the decision process less hassle. Another example is the Hi-mirror, which is a smart mirror that scans your faces and gives you feedback on the how well your skin is and the areas that need improving. It can detect wrinkles, red spots, pores, fine lines, and brightness levels in your skin and then creates individually tailored reports on steps you can take to fix them.
Multi-tasking products With the increase of human production through people wanting to maximise their working lives as much as possible while still balancing everything from family to work to socialising, users of beauty and skincare need a product that can tick as many boxes as possible to incorporate into their lives seamlessly. The advancements in technology allows for new formulas to be made where products can do three different procedures to help your skin all within one product.
"The new tide of technologically advanced beauty polymaths are rolling out the 3-in-1s in a way that has not been done before." (Vogue, 2017) The beauty industry is becoming increasingly competitive with the convenience for its consumers, this has lead to the an increase in innovative products that cut down the time of a beauty routine and are ideal to travel with. The increased influence social media has on the beauty industry is subconsciously making consumers want products that not just make them look better quicker, but also allow them to do it for a good price. Which is where multi tasking products are becoming vital to a consumers routine.
Insights from consumer attitudes After conducting interviews with staff in The Body Shop, Clinique and Space NK, the three most valued steps by consumers within a skincare routine is cleansing, moisturising and exfoliating, showing that YourGoodSkin should focus on bundles of these collection of products. In addition, according to research, women often feel overwhelmed by the masses of products available in different brands and feel like they are not given enough advice on which would match their skin the best, (Kaur, 2019). This is an opportunity for YourGoodSkin to focus on their customer service, as consumers have also reportedly said that in store experience really matters and consumers are more likely to purchase a product if they have the opportunity to ‘try before you buy’. (D’Adamo, 2019). The demand for certain products have drastically increased over the past couple of years in order to maximise the latest trend of glowy skin. These products consist of, vitamin c, retinol and detoxing pigmentation for leveling skin tones. To support this, 85% of women enjoy using vitamin c in their products, enhancing an open gap for YourGoodSkin to use vitamin c in their product range, which would be successful.
Latest technologies Technology has catapulted most, if not every sector into greater success with the birth of innovative products, and one of these industries is the beauty industry. With the likes of the Mac virtual try-on mirror to showcase lipstick colours with the touch of a button, it allows the consumer to be involved in an experience with the brand, as well as providing a much more convenient way to shop. The same can be said for the Charlotte Tilbury, magic mirror, which is important as 86% of buyers will pay more for a better brand experience.
Wider consumer landscape Broader macro-trends, including those that not only impact the beauty industry but have a significant impact on many markets include the following: The Instant Fix: With consumers having busier lifestyles than ever, they look for multitasking products that provide instant gratification rather than a time-consuming multi-step routine that provides gradual results over time (Kestenbaum, R., 2018). Additionally, there is low consumer trust in the skincare market that products actually provide results at all, particularly with age benefit products, therefore the consumer is more likely to believe a product works if the results are visible and instant. Personalisation: Using data and customer input to create products for a universe of one is a new form of luxury (Kestenbaum, R., 2018). A very recent trend that addresses this is genetic testing allowing consumers to be recommended skincare products with certain ingredients that fit their DNA. This mirrors a shift in consumer mindset where there is a preference for quality over quantity and they seek long-term penetrative care that is proven to work for them. (Lambranho, C., 2017)
Sustainability: Consumer decisions are now made with an underlying ethical motive. This is reflected in skincare through brands using refillable, waterless solutions and packaging free products in order to eliminate toxic chemicals both during and after the products consumption (Lambranho, C., 2017)
Skincare CBD (Cannabidiol) CBD is a purified, non-psychoactive compound harvested from the cannabis plant [Elle, 2018]. It has quickly become a sophisticated and celebrity loved product, therefore demonstrating its appeal to UK consumers. It has anti-inflammation and hydrating properties, as well as being full of vitamins A, D, and E. These help to soothe and beat the signs of ageing, which 44% of consumers want [Stella Rising, 2018]. Hemp which is another alternative also acts as an emollient to smooth rough skin cells on the surface, acting as a moisturiser in a way [Allure, 2019]. CBD can be found in a range of products, from serums, oils, lotions, cleansers.
Polyhydroxy Acids (PHAS) There are many acids available on the skincare market, such as sugar and salt scrubs which involve physically exfoliate [Elite Daily, 2019]. However PHA is a chemical reaction which helps to regenerate, and hydrate skin with a gentler approach; making this acid safe for sensitive skin. This acid is best for complexion perfecting as well as working directly on the skin’s surface without disturbing the delicate layers that lie beneath [Elle, 2018]. According to La Roche-Posay 62% of women say they have skin that is reactive, sensitive and irritable.
Waterless beauty Water is starting to become a luxury in the 21st century, leading brands into turning waterless for a greener future. Many brands have already taken onboard this initiative such as L’Oreal and Unilever; L’Oreal has committed to reduce their water consumption by 60% in 2020 from 2005 [J.W.T Intelligence, 2018]. Water makes up around 70% of daily skincare and lotions [Telegraph, 2018]. Dry and powdered formulas will overtake water products; they will have longer shelf lives as they are only activated once they are used, making them better for the environment. Water doesn’t add any benefits apart from adding volume to increase the amount; suggesting that waterless beauty will also increase freshness and value for money. These will come in the forms of powdered cleansers, dry face masks, serums and oils.
trends
Brand innovation strategy
THE CONCEPT
The concept for our innovation is the creation of a product/ service which makes the lives of our consumers easier as well as being personalised, informative and rewarding. It is all about encompassing personalised convenience as well as saving our busy working mums time.
Key ideas hierarchy The pyramid above exhibits the levels of importance of each factor within the process of innovating a new product. The subscription box is at the higher end of the pyramid due to this being researched as the most successful aspect. According to the research conducted, the subscription box is at the top of consumer appeal and will be easy and accessible. This will work by paying for a monthly subscription with tailored products to each person’s skin type. In terms of ‘brand fit’, subscription boxes would appeal to the target consumer of YourGoodSkin as it will help to attract consumers that struggle to make it to stores whenever they need to. The tailoring for subscription boxes is ranked the second level of importance on the pyramid and consists of the consumer choosing their skincare problems in order to personalise the subscription boxes. Along with the subscription boxes, it will consist of tutorials explaining how to use each product with facts about how it will change your skin for the better. This will aid growth potential for the brand because due to research; consumers feel as if they do not have enough professional help about their skin. The fourth aspect of the innovation strategy on the pyramid is a recycling scheme. This involves collecting YourGoodSkin products pots, tubes and containers and being able to reuse them to refill their content without having to dispose of any plastic pots. If the container saved came from the subscription box, the product will be resent and refilled instead of the consumer having to go and purchase it again from Boots. Finally, travel sized containers are listed last important on the hierarchy pyramid, this being due to it being quite easy and inexpensive to create, therefore the other aspects should be prioritised. They will be made to a maximum of 100 ml to ensure they are safe for plane travel and convenient for on the go.
After completing the idea generation box, which gave insight on which ideas were both innovative with high needs and new, the idea of a subscription box became quite dominant. The grid also provided insight on which ideas will be innovative, however the more into this category the ideas got the harder it seemed to be to execute them, which is why the subscription box was the main insight, due to it being simpler to carry through, unlike an auto refillable product which would take a lot of technology. Ideas such as tutorials with the product or subscription box provided were at the middle of the grid, however though it is a simple idea, it could be quite effective, especially paired up with a stronger idea.
SUBSCRIPTION BOXES
The new addition to the collection for YourGoodSkin is going to be a subscription box. Upon primary research, 61% of respondents considered subscribing to a personalised skincare box, indicating that it is a good direction to move into. The skincare box will be personalised to each consumers skin needs, such as dullness, oiliness, skin texture, blemishes and minimising pores to ensure they are getting the most out of their skincare routine. Within the box, each product will be in a travel-friendly container up to 100 ml. It will be fully compostable and biodegradable, therefore allowing consumers to dispose at their own accord. Based on primary research, the average amount of products used within a skincare routine was 3, therefore in order to maintain continuity, the box will contain the same. As subscription boxes usually get consumer fatigue, the box will include free testers when promotions are running and will also have seasonal editions to keep it fresh. The subscription box was chosen as our product innovation as YourGoodSkin consumers fall between the ages of 30-45. This demographic are busy working women and mums who rarely have enough time to themselves, therefore by creating a convenient and easily accessible product such as the subscription box it will ensure they are continuing to look after their skin and feel confident, even if they don’t have time to visit the shop.
SUBSCRIPTION BOX TAILORING
The subscription box will be tailored to each specific consumer by allowing them to choose a skin concern they believe they have such as, dullness or dryness. Following this, three travel sized products that will aim to help this concern will arrive in the monthly subscription box. Due to the recent surge in technological advancements in recent years, it has saturated the beauty industry and therefore made routines more personalised to give better results and to push consumer loyalties. Personalisation has recently become a macro trend and is a fairly new concept in terms of being in the skincare market. Furthermore, using personalisation and seeking brand distinctiveness through this will shift consumer mindset to quality over quantity and seek long-term penetrative care that is proven to work for their specific skin type. Personalised subscription boxes is not overly common or popular in the high street beauty market and therefore will create differentiation for YourGoodSkin and set them widely apart from their competitors. The personalisation box mainly aims to reach consumer needs, which will eventually push consumer loyalty to the brand in hope for expansion. In Addition to this, allowing the consumer to speak out about their skin problems and receiving specific products to tackle the problem will increase brand loyalty.
TUTORIALS
Within the subscription box, there will be a set of tutorials to provide guidance to the user into the ideal order and method to apply the products supplied to them. According to the Telegraph, 87% of women are confused about their skincare routine, therefore by providing a tutorial with their products this will help to iron out any confusion. Each tutorial will be tailored to the consumers skincare needs and the products they are given, it will include: amount usage, time of use, and how to use it and where it should be used.This will be a great aid to reduce wastage of product as well as ensuring their skin is being targeted whilst having the expected outcome. As the skincare market is largely oversaturated, according to Stella Rising, 59% of women are overwhelmed by the number of skincare products available on the market; signifying that if YourGoodSkin include tutorials it will be more than likely their consumers won’t stray to other brands and by providing clear guidance it ensures that they understand what the products aim is.
RECYCLING SCHEME
As part of the recycling scheme, the customer will receive their YourGoodSkin products and post back them once empty using an envelope enclosed within the packaging. It will be free returns and will fit into the post box to save time. Once the company receives the empty packaging, it will be refilled and returned back to the consumer for the following month. This saves the packaging from being disposed of and is therefore more sustainable, which is a large desire for the YourGoodSkin target consumer.
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With convenience becoming increasingly vital in skincare, the market has become competitive due to its success and necessity, which has led to an increase in innovative products that reduce the time of their routine as well as being ideal to travel with.
Travel sized pots will also be included in the product development due to its ease and lack of expense. The smaller products mean consumers will be using more pots, which in turn will give an incentive to return them through the post to be rewarded, whilst helping the environment through the link to the recycling scheme. This will be a much more convenient product that’ll allow busy mums to take them anywhere. Whether they are travelling with work or running errands with their children, this will add to the convenience factor of the service.
The product
The subscription box will consist of three travel sized products chosen to tackle a specific skin concern chosen from the consumer throughout the application process for the box. For example, the target consumer that is being used throughout this report struggles with dull looking skin. Therefore the products in the box will consist of the Hydrating Skin Concentrate, the Revitalizing Foaming Wash and the Brightening Exfoliating Scrub to help boost, brighten and lift the skin. Inside the box alongside the products will come a tutorial, which will give instructions on how to use the product such as when and how many times a day, how much of the product should be used and explain the benefits of the product. In addition to this the box will include a small envelope which allows the consumer to post back to Boots through their nearest postbox in order to receive a new one. This makes the process quick and easy so that YourGoodSkin’s busy working mums can have an easy skin routine sent to their homes hassle free for them.
What is inside? The subscription box will consist of three travel sized products chosen to tackle a specific skin concern chosen from the consumer throughout the application process for the box. For example, the target consumer that is being used throughout this report struggles with dull looking skin. Therefore the products in the box will consist of the Hydrating Skin Concentrate, the Revitalizing Foaming Wash and the Brightening Exfoliating Scrub to help boost, brighten and lift the skin. Inside the box alongside the products will come a tutorial, which will give instructions on how to use the product such as when and how many times a day, how much of the product should be used and explain the benefits of the product. In addition to this the box will include a small envelope which allows the consumer to post back to Boots through their nearest postbox in order to receive a new one. This makes the process quick and easy so that YourGoodSkin’s busy working mums can have an easy skin routine sent to their homes hassle free for them.
Product price The price point of £20 with free postage and packing has been chosen because of the place it would then be positioned in the market in comparison to its competitors. Boots is a high street retailer, therefore having a subscription box would be a differentiating factor as there is next to no high street skincare subscription boxes. This will allow for more opportunities for a purchase due to the volume of stores across the country along with the online store. Such competitors include Glossy box and Meebox at £30 and Aroma box at £20 who have a higher price point and are available online. Free postage gives consumers more of an incentive to buy and will decrease subscription fatigue as they will not be paying any frustrating and unnecessary costs extra each month. The free returns of the pots for recycling gives the incentive of rewarding the consumers and increase brand loyalty to stay with the service for as long as possible.
Product SWOT Strengths Helps build consumer loyalty as whole box will be the same brand, meaning the customers routine will all be YourGoodSkin.
Opportunities - Personalisation is a macro trend so different skin types can be tailored with products. - Sustainability as a macro trend in product packaging.
Weaknesses - Pump mechanisms cannot be recycled - Needs a strong and loyal customer base in order to work as most women use a variety of products in their regimes.
Threats - Digital tutorials may be favoured due to the rise of social media - Other subscription boxes such as Glossybox and Birchbox that offer a variety of different products every month may suit the consumers preferences better.
Potential risks
The risks associated with the innovation of a subscription box into the YourGoodSkin range are the following: As most women use products from a variety of brands in their routines, there is a need for exceptionally strong customer loyalty to YourGoodSkin’s products in order for the subscription box to be of value to the customer. Competitors like Glossybox and Birchbox contain a variety of different beauty products from different brands every month therefore customers may take preference for these subscription schemes due to the variety of them. A common issue with brands that offer subscription services is fatigue; customers will sign up to a new service due to the novelty of it and cancel it after a few months when they lose interest. As YourGoodSkin will be sending the same products every month this issue is even greater. To help fight this fatigue, a free facial tool or gift, such as the YourGoodSkin softening facial brush (£6) will be included every 5 boxes. Seasonal and personalised boxes will also be brought out during holiday periods and birthdays to make the service enticing.
Conclusion Overall, the main aims for developing a subscription box is to increase customer loyalty and brand awareness by creating a seamless and irreplaceable experience through personalisation. YourGoodSkin lacks a personal brand to customer relationship due to their struggle with visual aesthetics with instore merchandising, therefore sending products in a personalised box to a consumer will help improve this and create an irreplaceable connection.
APPENDIX
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