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Executive Summary
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project declaration School of Art and Design: Fashion Marketing & Branding I confirm that this work has gained ethical approval and that I have faithfully observed the terms of the approval in the conduct of this project. Signed (student) ……………………………………………………………………… Date .....................................………………………………………………………………………
FMBR30001: strategic & creative solutions Project: Stage 2 realisation stage Hasina Hoque: N0589297 Word count: 1,000 Excluding quotes, tables, business models and references 5
contents Chapter 1: Introduction
Chapter 6: financial projections
1.1: stage 1 key insights - pg 11 1.2: The problem - pg 13 1.3: The business opportunity - pg 15
6.1: Sourcing initial investment - pg 54 6.2: Year 1-3 Profit and Loss- pg 55
Chapter 2: market overview
Chapter 7: Business operations and logistics
2.1: Natural beauty market forecast - pg 19 2.2: Market Drivers - pg 19
7.1: Implementation timeline - pg 58 7.2: Key risks - pg 59 7.3: KPI’s - pg 60
Chapter 3: the concept 3.1: Concept summary - pg 22 3.2: Brand DNA - pg 24 3.3: Competitive landscape - pg 28 3.4: Brand positioning - pg 29 3.5: Consumer segmentation - pg 32
Chapter 8: Conclusion Conclusion - pg 64
Chapter 9: References and Image Chapter 4: the marketing strategy
References
4.1: marketing mix - pg 36 4.2: growth objectives - pg 42 4.3: growth strategy - pg 43
references - pg 68 Image references - pg 69
Chapter 5: the communication strategy 5.1: Communication objectives - pg 46 5.2: Online & offline channels - pg 47 5.3: Launch campaign - pg 50
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Chapter 1: introduction
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“In recent years, the cosmetic industry has seen a growth in demand for natural products as a result of consumer response to a healthier lifestyle.� - (Vesselina, 2009 as cited by Syazana and Hashim, 2015 as cited by Hoque, 2018)
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1.1: Stage 1 key insights As an under-researched area, Stage 1 explored female Millennials’ purchasing behaviour towards the natural beauty sector.
- (Hoque, 2018) Fig 1 11
Fig 2 12
1.2: The problem Stage 1 highlighted a significant gap between purchasing intentions and actually purchasing cleaner beauty products influenced by external factors such as price, ambiguity around “natural� and ingredients, brand image, product benefits, incentives, and accessibility.
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- (Hoque, 2019) Fig 3 14
1.3: The business opportunity Stage 1 insights and primary research highlighted a consumer need for education and honesty about the natural beauty sector, skincare and benefits of natural ingredients to inform buying behaviour and turn purchasing intentions into actions. As product loyalty was found to be more important than brand loyalty, solutions addressing individual skin needs will gain more attraction.
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Chapter 2: market overview
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“Natural beauty has been outperforming “conventional” beauty for some time, taking market share in the process.” - (Nielsen, 2018).
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Fig 4
2.1: Natural beauty market forecast As an increasing number of consumers become aware of the harmful side effects of artificial chemicals in cosmetic products, many are opting for “greener” beauty products posing less risk to their health and the environment with the global natural beauty sector expected to rise to $21.8 billion by 2024 (Statista, 2018).
natural ingredients West, 2018).
(Coast
South
Increase in marketing initiatives Brands are capitalising on this demand by increasing marketing efforts into promoting such products to create a specific brand image with the aim of increasing customer acquisitions (TechNavio, 2017).
2.2: market drivers Growing consumer demand for cleaner ingredients Strong consumer beliefs that natural ingredients deliver safer results and increased enthusiasm about the benefits obtained from 19
Chapter 3: The concept
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3.1: concept summary
Clean Beauty Lab is the UK’s first clean beauty brand offering a personalised skincare experience both online and offline.
The brand takes a playful and informative approach offering highly effective products personalised to an individual’s skin type and concerns. Cocreative workshops offers consumers a platform to learn about skin health, product ingredients and the benefits of natural ingredients as they create their own products.
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Fig 5 23
3.2: brand dna
Mission “Clean Beauty Lab aims to encourage women to make a positive change in beauty consumption through a personalised and educational experience to clean beauty.�
Fig 6 24
vision “Our vision is to build and empower a community of beauty enthusiasts with a desire to explore and engage in a cleaner and more honest approach to beauty.�
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brand values
Personalised
We believe you are unique and so is your skin. We take into account individual skin types, concerns and lifestyles to deliver products that are highly eective without toxic chemicals.
Educational
Natural can be a grey area with very few regulations, inconsistent definitions and complex ingredient labels. We are committed to decoding scientific jargon and providing easy, relatable and reliable information about skin health, product ingredients and the benefits of natural ingredients.
Community
We believe in real recommendations from real people. We want to bring together a community of clean beauty enthusiasts so we take a consumer-centred approach encouraging and nurturing conversations amongst our consumers.
Honesty
We believe in transparency from the ingredients we use to the way we communicate our products. We are proud to be 100% natural, vegan and cruelty-free.
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branding guidelines
Fig 9
Fig 10 Fig 7 Fig 8
TONE OF VOICE
Bold, playful, conversational, feminine, inspiring, encouraging 27
3.3: Competitive landscape
Fig 11
A Competitive Universe Analysis (PaySimple, 2019) illustrates the competitive landscape for clean skincare brands targeting younger female Millennials within the UK.
Level 2 competitors Niche clean beauty brands appealing to female Millennials operating within the same geographic market and could change their product oering to oer personalised products.
Level 1 competitors Online brands providing personalised skincare products within the same geographic market who could adopt their strategy to oer an online experience. 28
3.4: brand positioning
Fig 12
A USP was identified by measuring level 1 competitor’s offering of online-offline experiences against price points. As the map illustrates, no brand offers an integrated onlineoffline experience to personalised clean beauty, thus providing Clean Beauty Lab with a strong point of differentiation and USP.
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“For women who want to feel confident about what they’re putting on their skin, Clean Beauty Lab provides a personalised and educational skincare experience. Clean Beauty Lab’s products are effective and safe because of it’s commitment to personalised solutions and non-toxic ingredients.” - Brand positioning statement
Fig 13 30
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3.5: Consumer segmentation Segmentation of clean beauty buyers amongst young female Millennials identified two types:
Active clean beauty consumer Millennials who have a strong interest and knowledge in clean beauty and intentionally consume cleaner beauty products.
Aspirational clean beauty consumer Millennials with the intention to consume cleaner beauty products but require education and guidance regarding clean beauty.
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Fig 14 33
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Chapter 4: marketing strategy
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4.1: Marketing mix product Clean Beauty Lab will launch with a moisturiser offering 9 possible formula combinations in the first year. The top 3 skin concerns amongst young female Millennials: 1. 2. 3.
Pores & blackheads Blemishes & spots Scarring & uneven skin texture
Products will target these concerns in combination with the top 3 skin types — “dry”, “oily” and “sensitive”.
Fig 15
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“87% of Millennials consider catering to skin type and concern as an important factor.� - (hoque, 2019)
key natural ingredients dry
Pores & blackheads
Blemishes & spots
sensitive
Skin type
Fig 16
oily
Scarring & uneven skin texture
Skin concern
Fig 17
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promotion
“74% of consumers agree that “friends & family” would strongly influence their decision to try new skincare products.” - (hoque, 2019)
Stage 1 insights and primary research highlighted a consumer desire for transparent communication thus the brand will rely on earned media such as peer-to-peer referrals and word-
of-mouth marketing (WOM) to build organic awareness and engagement. Where bought and owned media is used, content will be relatable and informative to the consumer.
price Revenue streams
Price points
Moisturiser
£20
2 hour workshops
£40 per workshop
Table 1: Revenue streams and price points 38
process
Fig 18
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place
Clean Beauty Lab will operate both online and oline creating multiple touch-points for the consumer allowing deeper, meaningful consumer relationships and the opportunity to build a community of like-minded individuals. The pop-up will be based in London’s Beauty Quarter: Covent Garden due to the vast number of existing standalone beauty and skincare boutiques than any other place in London.
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pop-up floor plan Fig 19 Fig 20
Fig 23
Fig 21 Fig 22
Fig 25
Fig 24
Fig 27 Fig 29
Fig 28 Fig 26 41
4.2: Growth objectives 1. Successfully penetrate the UK natural beauty market within 3 years and increase market share by a minimum of 10% year on year. 2. Create strong brand saliency over 3 years amongst the core target audience by continually differentiating product offering through new product development.
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4.3: growth strategy Year 2: New product development (NPD) and building loyalty
Year 1: Brand launch and growing awareness •
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Growing awareness in the market sector and amongst target audience.
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Focus on investing profit into NPD.
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Introduce second product (cleanser).
Launch online with 1 product (moisturiser) alongside a 3 month pop-up with a launch campaign.
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Second 3 month pop-up offering a tangible experience around new product launch.
Driving online sales and building a community base.
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Growing organic awareness.
Table 2: Growth strategy overview
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Year 3: NPD and UK expansion •
Focus on popup expansion to Manchester.
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Introduce third product (face mask).
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Two pop-ups for 6 months in London and Manchester with product launch.
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Campaign similar to year 1 to maximise awareness of expansion and NPD.
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Chapter 5: communication strategy
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5.1: communication objectives 1. Generate strong brand awareness of Clean Beauty Lab amongst the target audience by achieving 20,000 followers on Instagram by the end of year 1. 2. Build a loyal community following of the brand by achieving a social media engagement rate of 4%+ consistently throughout the first 12 months. 3. Continuously drive traffic to the website by encouraging a change in consumption behaviour of young female Millennials through educational and appealing content throughout the first 12 months and thereafter.
Fig 30 46
5.2: Online & offline Channels offline Pop-ups:
Will aim to drive traffic to the website and further transactions.
Packaging:
“Instagrammable” branded packing incorporating the the “Millennial pink” hue will aim to create a post purchase experience for consumers to share online creating organic awareness and UGC for the brand.
Fig 31
Fig 32
Fig 33 47
“93% of young female Millennials use Instagram to engage with beauty.� - (hoque, 2019)
online instagram:
email:
Created and user-generated content (UGC) will be used on Instagram to communicate educational and inspirational content to inform, encourage peer-to-peer conversations and drive traic to the website.
Will aim to drive online sales and workshop bookings which can be monitored by measuring clickthrough rates.
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Fig 34 49
5.3: launch campaign A strategic launch campaign incorporating micro-influencers and social media will aim to generate maximum brand awareness. Following a brand activation event a social media campaign will run alongside the official brand launch to drive engagement and awareness. Launch campaign overview
Campaign name:
You Glow Girl
Hashtag:
#youglowgirl
PLatforms:
predominately influencers’ and brand’s instagram.
Frequency of posts:
2 posts per influencer each month of campaign (8 per month)
KPI’S:
Number of times hashtag is used, number of followers gained, engagement levels, brand mentions, workshops/product sales.
Activity:
4 micro influencers will be contracted to share their experience of products and workshops and why they prefer natural ingredients in their beauty routines. They will create a discussion around the ingredients in their personalised products and how it benefits their skin type and concern creating relatable content for followers. A competition will run alongside the campaign for one consumer to win a free workshop for themselves and a friend each month of the campaign to encourage engagement and referrals.
Table 3: Launch campaign overview 50
Fig 35 51
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Chapter 6: financial projections
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6.1: Sourcing initial investment start-up costs
An initial investment of £100,000 is needed to cover start-up costs which will be raised from 3 sources:
Source
investment required
Virgin Start-up Loan: Chosen based on successful acquisition of £50,000 for Level 2 competitor Bybi during the early stages of their business (Cox, 2017).
£25,000
Crowdcube: Equity based crowdfunding platform with high success rates. Clean Beauty Lab will offer investors 5% in equity in return for investment. Friend & family: Further investment to help fund business operations without fixed repayment terms. Table 4: Investment sources 54
£70,000
£5,000
6.2: Year 1-3 profit and loss
Despite a significant loss in first year mainly due to start-up costs, the business is projected to breakeven within year 2 placing the business in a strong financial position to reinvest
profit into NPD and pop-up expansion in year 2 & 3. Year 3 projects a net profit of ÂŁ3,500,039 putting the brand in a promising position for any further investment.
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Chapter 7: business operations & logistics
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7.1: Implementation timeline The critical path outlines the activities required prior to launching with an estimation of 18 months to implement the business. Eective launch date: April 2021.
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7.2: key risks Key risks of implementing the concept have been highlighted with contingency tactics to minimise these risks and maximise success.
risk factor Projected revenue may not be reached
Initial investment may be not secured
Pop-up and product development delays
Level of risk
Prevention A top-down approach was undertaken to predict a sales forecast aligning with average growth rates and justified periods of growth. A sensitivity analysis test was used to project revenue should the business incur a 20% increase or decrease in sales.
Medium
Medium
Various reputable sources have been identified with justification. Should the business fail to obtain ÂŁ25K from Virgin Start-up Loans, this can be raised in crowdfunding as the current amount required is well below the average amount.
High
Unforeseen circumstances can be expected, however a realistic critical path of 18 months has been outlined with the guidance of an industry professional.
Medium
Due to experiential nature of popups and limited product range in year 1, repeat visits may not be likely. This has been considered with a short operating period for pop-ups which does not expand till the third year with more product oering. A referral and reward program will be introduced to encourage repeat visits which has been validated in primary research.
Lack of repeat visits to pop-ups
Table 5: Risk Assesment 59
7.3: KPI’s The following KPI’s will be used to measure the effectiveness of the brands’ strategies to assess whether the growth and communication objectives are being met thus informing further strategic decisions.
Objectives
KPI’S
Growth
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Successfully penetrate the UK natural beauty market within 3 years and increase market share by 10% year on year.
Percentage of market share can be assessed by measuring and comparing the number of sales generated from products online and pop-up locations each year to determine if market share has increased or decreased.
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Create strong brand saliency over 3 years amongst the core target audience by continually differentiating product offering through new product development.
Brand saliency can be monitored through brand interaction and perception tracking metrics (e.g. product reviews) of product offering over 3 years to provide strategic direction for further product development.
Communication
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Generate strong brand awareness of Clean Beauty Lab amongst the core target consumer by achieving 20,000 followers on Instagram by the end of year 1.
Regularly measuring the growth of followers in accordance with communication initiatives. Also measuring the reach and impression of posts to understand the number of people the content is reaching and how many times and whether this aligns positively with the number of followers.
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Build a loyal community following of the brand by achieving a social media engagement rate of 4%+ consistently throughout the first 12 months.
Measuring the number of likes, comments, mentions and shares of posts and hashtags as will provide an indication of engagement rates amongst consumers informing the content and direction of future marketing activities.
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Continuously drive traffic to the website by encouraging a change in consumption behaviour of young female Millennials through educational and appealing content throughout the first 12 months and thereafter.
Measuring the click through rate from online channels to understand how effectively marketing activities are driving traffic to the website and conversion rates and ultimately impacting the volume of sales.
Table 6: Measures of success
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Chapter 8: conclusion
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conclusion
In conclusion, an innovative and commercially viable concept has been proposed based on critical insights from previous bodies of work. Clean Beauty Lab oers young female millennials a solution to bridge the gap between their intention to purchase clean skincare and actually purchasing through an educational, immersive and personal experience.
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Chapter 9: References & image references
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References
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image References
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