Destina
Creative Strategy Document
isurika kesara w11032874
CONTENTS
Concept / / 01 Rationale / / 02-03 Consumer Profile / / 04-06 Market Research / SWOT / / 07 Market Research / Trend Analysis / / 08-09 Market Research / 7Ps / / 10-13 Market Research / Competitor Analysis / / 14-15 Logistics / Risk Assessment / / 16-17 Legal / Social Responsibility / / 18-19 Budget / Timeline / / 20-21 References / / 23
CONCEPT
Destina is a natural beauty brand that celebrates an appreciation of the quality of slow beauty and encourages people to embrace a more time rich routine with our products. The products are carefully mastered to allow natural beauty to thrive and to enrich health and wellness whilst encouraging a balanced approach to life. Destina is determined to follow an honest, yet eclectic, footpath to beauty rather than just being an everyday follower of mass beauty and lifestyle trends. Real people and stories inspire Destina. It is our promise for an unparalleled brand exposure and customer involvement. Destina’s beliefs start within and from the very beginning. Everyone involved in the creation of Destina is treated equally and considerately. An honest beauty brand with a unique individuality.
Destina.
RATIONALE
FOR THE DESTINA CUSTOMER Destina cares about a happier planet and equal rights for all kinds of inhabitants. For humans, beauty is an essential element of a healthy lifestyle. Apart from beauty, balanced diet and exercise, healthy relationships and self-sufficiency boosts spiritual and physical health. The understanding of an interconnection of various factors leading to a better lifestyle is important and for the Destina audience this will be encouraged by brand communications. Most of the beauty products in the market are perfect examples of external applicators and quick fixers for skin problems. However, Destina’s concept stretches further, caring for an overall personal wellbeing. The beauty products are created to give an experience rather than a quick external application. All the product ranges use natural ingredients and are processed carefully without any harmful intent to any habitants or nature. Furthermore, over the past few years an unfortunate rise in mental instabilities and personal insecurities have increased as a result of recent lifestyle choices and social pressures. This issue is given priority concern from CTPA*. In a media panel held by CTPA in February 2011, it was revealed that pressure to be beautiful was significant in the growing digital age. The products at Destina are developed to encourage a time rich routine and to give an enjoyable experience in the hope of de-stressing and creating a serene atmosphere in a real life situation. Destina inspires people to accept themselves, enjoy their own true beauty and to be a unique individual. Inner peace and happiness is considered important at Destina. Imperfections are noticed by Destina as familiar and unique. *CTPA - The Cosmetic, Toiletry & Perfumery Association.
FOR DESTINA AND ITS TEAM The Soil Association’s 2015 Organic Market Report indicated a market growth of 21.6% from last year, showing an extra spending of £800,000 per week on natural and organic beauty products. The massive trend towards natural beauty products started to rise with a general interest in healthy food habits and physical wellbeing, especially displayed through social media sites. According to Clare McDermott, Soil Association’s Business Development Director, “Organic beauty will continue to thrive in the following months.” Destina not only delivers high quality natural beauty products but also gives an enjoyable experience with a sense of premium feel. Furthermore, CTPA 2014 Annual Reports recorded that UK economic indicators show a wage growth outstripping inflation for the first time in six years, which will work favourably with UK businesses. It was also revealed that people tend to spend more on cosmetic and personal care products than on food and drink, which while highlighting the strong future of the beauty industry, is not good news in relation to health concerns. However, it shows people’s urge to look beautiful and as a unique brand, Destina is determined to fulfil beauty needs with a suitable ethical approach. Destina, as a new brand, understands the competitive beauty industry. The company’s practices and promotional strategies will operate efficiently with the use of minimum resources. This follow up will help Destina to operate smoothly and also to understand the purchasing decisions of booming conscious consumers and Generation Z as they follow a similar approach in buying (Mintel, 2015). A slow and steady approach will allow Destina to learn and experience a long business life cycle.
CUSTOMER PROFILE
Name- Bethany Kaur (32) Occupation- Senior Accountant Income- 36 000 pa Educated and experienced hard working individual. Habits Use social media to keep up to date Treat her with occasional expensive items Likes to spend quality time with family Saves money and enjoys travel Eat organic and home cooked meals Supports charities Characteristics Tech-savvy Thoughtful and creative Full time employment Cares about ethical and sustainable practises Loyal and Honest Minimal approach and Organised
Name- Sarah Bell (26) Occupation- Geography teacher Income- 18 000 pa High school graduate, free thinker. Habits Prefers real life conversations Cautious in expensive purchases Likes nature and have pets Grow their own vegetables Enjoys long walks and yoga Supports charities Believes in “DIY� concepts Characteristics Creative and responsible Part time employment Loves her hobby Positive and energetic
Name- Erika Tang (24) Occupation- Fashion Blogger Income- 25 000+ pa Fashion and beauty trend follower. Habits Spends a lot of time in social media Expensive and Premium taste Prefers indoors and convenience Subscription services on food delivery Spa, Sauna. Work out everyday Seeks highly reviewed, trendy products Tries cosmetic surgeries Characteristics Confident and competitive Trend follower Looking her best is important Materialistic personal
MARKET RESEARCH SWOT
MARKET RESEARCH
ENVIRONMENT AND TREND ANALYSIS
ORGANIC BEAUTY AND ITS EXISTENCE IN THE MARKET In the past few years’ businesses have shown an interest in a healthier, happier lifestyle with more and more consumers seemingly embracing the trend. Health oriented store Holland & Barrett UK, reported a 12.4% increase in profits for the last reported financial year (2012-13) (Mintel, 2014). There is a noticeable increase in new organic food products and natural supplements. This trend is not only limited to consumable goods but also other industries like fashion, beauty and architecture. According to Transparency Market Research, the global demand for organic care products is expected to reach $13.2 billion by 2018 from $7.6 billion in 2012 which is at a Compound Annual Growth rate of 9.6% from 2012 to 2018. This research is supported by consumer research from Mintel Facial Skincare 2014 report, where it is suggested that 18% of consumers now look for products which are free from certain ingredients, demonstrating that people are becoming increasingly aware of ingredients and their effects. 57% respondents prefer natural or organic products as they believe them to be free from unwanted harsh ingredients and chemicals. People have chosen to be mindful consumers and knowledgeable about their environments. An increasing number of consumers are becoming conscious about their purchases and lifestyle choices. With global internet availability, knowledge and facts are easily accessible, allowing consumers to develop their opinion about products and purchases. Consumers will continue to seek honest and trustworthy qualities from a brand in the future (Mintel, 2015).
TRANSPARENCY AND MINIMALISM “Materials will become meaningful, evoking experiences and expressing new values. Less will become even less, and mean even more. As focus turns to responsibility and accountability, less becomes even less, and means even more.” (WGSN, 2015). Organic and natural products are proven to contain pure and skinfriendly ingredients compared to normal BPC* products. Conscious consumers tend to seek simply formulated beauty products with a clear list of ingredients as they want to ensure safety with their purchases. The concept of minimalism and business transparency is important for the conscious consumer. Simple language and short descriptions are preferred over exaggerated, lengthy writing. Moreover, accessibility to information concerning raw material suppliers and manufacturing procedures will improve brand loyalty. Experiential and emotional elements are a further successful way to successfully reach conscious consumers. BPC* - Beauty and Personal Care.
NATURAL AND SUSTAINABLE Organic beauty products containing botanical oils may threaten BPC product sales in future (Mintel, 2015). It is crucial news for Destina as its first ever products to be launched are based on ancient recipe of healthy oils for skin. Nature and it’s existence is becoming concerning to people with recent climate changes and unfortunate natural disasters (WGSN, 2015). Sustainable and ethical practises tend to become mainstream business responsibilities. Consumers will essentially look into these practises before they make a purchase. Proctor and Gamble is already building a Wind farm in Texas to power all their North American factories by 2016 indicating how major brands are stepping towards these practises. The first zero- waste restaurant is opened in Brighton promising “absolutely no waste” by the company which can benefit ethically and financially (WGSN, 2015). Destina as a novel and fresh brand, will start to improve brand transparency and wellness of habitants in small scale maintaining it’s beliefs.
SLOW BEAUTY The ‘Slow is Beautiful’ trend by Mintel, also known as ‘Slow Beauty’ from Think Tank was pioneered by Shel Pink, founder of SpaRitual, with an minimalistic approach to health and happiness. Simplicity is a key factor in the trend. It is an approach to an organic lifestyle that can help with daily routines. Pink introduced spa tradition, conscious consumption, rituals, renewal, meditation, self-expression and nourished mind as points in life. Although it takes a slow and steady approach to practice, it is believed to be a faster way to a happier and balanced individual. The approach helps users reach their goals tactfully and to maintain a balanced mind. The concept is a main inspiration for Destina and in creating a calming atmosphere for its customers.
EAST MEETS WEST The trend introduced by Mintel, has been in practise for years, especially by beauty brands like Rituals and Origins which are already using Eastern beauty practises on their products launched for European markets. The blur between cultures and communities amuses the consumer with unexplored stories. Although the practise is already in use by beauty brands, there are still unheard stories, beauty practises from rural habitants around the world where Destina is eagerly waiting to explore and share with the rest of the world.
MARKET RESEARCH 7pS
7Ps
PRODUCT A natural beauty product box designed to be multi performing with a flexibility to adjust the contents to customer preferences. The main product is a natural beauty oil consisting of the finest natural ingredients sourced in accordance with sustainable practices. Along with the main beauty oil, a thick consistent scrub and face pack will be presented in half size containers. The natural products are developed to be used all over the body and can be mixed to suit customer preferences. Unlike most other beauty products, Destina does not restrict customers with the “results with everyday use” concept. Customers are absolutely free to choose when to use the products depending on their personal routines. However, it is best when customers enjoy the product over a quick fix in the morning. Consumers can follow their daily beauty routines and enjoy Destina as a weekly indulgence. The boxes will be developed according to inspirational stories heard from Destina’s long beauty journey from around the world. The first beauty box will be developed with coconut oil and orange peel with a hint of Madagascan vanilla scent. Product ideas from Destina will be discussed and formulated to perfection by a team of chemists from Cosmetic Labs, UK. This company will also be responsible for test running and legal affairs.
PACKAGING The beauty boxes are in kraft colour and made of recycled paper by Tiny Box Company, East Sussex, UK. Destina’s approach to sustainable practices will not affect its premium feel. The packaging and branding was mainly inspired by the art of letter writing. With technological improvements and busy lifestyles, most people are living a virtual lifestyle. Although it is understood that people need to adjust to this fast paced lifestyle, Destina still believes time rich rituals appear to be more worthy and meaningful. This idea of letter writing and postal services have majorly inspired Destina’s branding and packaging. The fonts are a close match to ancient hand written letters and the font colours were chosen to be close to a natural blue ink. The logo is designed in a simplified version of an old stamp and the layout for the beauty box and label for the containers are inspired from old postcards. Destina believes in clear and simple written content which is easily deciphered. The boxes contain printed promotional materials and information cards on product usage.
PROMOTION Destina is inspired by the art of letter writing, one of the oldest forms of quality communication which appears to be vanishing owing to technology led media and communication. To celebrate letter writing and postal services Destina is collaborating with The Postal Museum in London which is due to open in January 2017. The Postal Museum is an exciting project allowing public access to an old underground postal delivery railway across the City of London. To launch Destina an encrypted message service with the beauty boxes has been implemented. Furthermore, a creative film will be launched on the website and a press kit will be released to the press.
PRICE After thoroughly researching the prices of our competitors, the product price was decided to be in between £30.00 - £40.00 in order to suit a wider audience budget. Destina will also incorporate occasional offers and discounts to this price point.
POSITIONING Destina with a mid price range, is affordable when compared to the beauty sector. The products are natural and manufactured following ethical practices and with an increased trending market for a healthy lifestyle, it is believed to be an achievable price point.
PEOPLE Destina is reinforced by a small team of five dedicated members who share similar working ethics. Isurika is the managing director of the company who initiated the idea of Destina in summer 2015 while she was spending her holidays in her parents countryside house in Sri Lanka where she started mixing raw materials from her own garden and the small village farmers. Co+Co is another award winning business idea initiated by Isurika and five other colleagues. Experience at Co+Co and graduate enterprise module in her final year fashion communication degree helped her to excel her business strategy implementation. Isurika is involved in every aspect of the business from packaging to finance management. The second member to join Destina was Nathalie and her duties include creative direction and marketing. Two interns from Northumbria University joined Destina after Nathalie. Sam is a third year business marketing student who has experience in a wide range of working environments. He has managed different venues in Newcastle from clothing retailers to bars. His outgoing personality and local contacts are important to Destina as a start up company. Victoria, our second intern is a second year fashion communication student who manages Destina blog and social media. Nathalie and Victoria keep Destina’s audience informed. Finally with the growth of Destina, David, the finance director joined the team. David is a passionate mixologist and loves to travel which perfectly complements Destina’s team. There is a team of five members (Allan, Ben, Patrick, Dorothy, Ellen) working part time on Logistics, Packing and handling.
POSITIONING Destina with a mid price range, is affordable when compared to the beauty sector. The products are natural and manufactured following ethical practices and with an increased trending market for a healthy lifestyle, it is believed to be an achievable price point.
MARKET RESEARCH COMPETITOR ANALYSIS
Destina selected five brands carrying a strong consumer base for natural body oils to analyse on their product and business journey. The five brands are well-established and offer a variety of products and services. Rituals Body Oils and Neal’s Yard Massage and Body Oils are affordably priced to a wider consumer market whilst the other three brands, Aveda, Moroccanoil and Jo Malone are priced to suit a luxury consumer market. Destina’s price range of £30.00 to £40.00 is suitable for a wider audience. It will be economical to purchase Destina beauty box containing three beauty products when compared to its competitors who offer one product for the same price point. The variety of product choices from competitors such as Rituals and Aveda may act unfavourably when viewed against Destina’s limited product choices. However, Destina’s target customers tend to purchase consciously and prefer simplicity over complication. Rituals is an inspiring brand for Destina as its rapid global expansion within a short ten year period manifests a successful beauty and lifestyle brand journey. Rituals is developing to a sophisticated lifestyle brand with clothing, home and perfume products recently added to their brand expansion. The brand encourages harmonies, comforting lifestyle and an art of giving and spiritual happiness, where elements of Pink’s ‘Slow is Beautiful’ concept and ‘East meets West’ trend from Mintel have emerged. Destina is also hoping to expand into a lifestyle brand in future.
LOGISTICS
MANUFACTURING For the first six months of Destina’s business life, products will be outsourced from Cosmetics Laboratory Limited in West Sussex which is a registered member at CPTA (Cosmetic Toiletry and Perfumery Association). Product ideas and inspiration will be discussed with an experienced chemist from the laboratory. After the final product range is agreed by Destina and approved by relevant authorities, Cosmetic Laboratory Limited will manufacture the product.
DISTRIBUTION Destina is produced in the UK and can be purchased online nationally. Express delivery services will be provided for an extra cost or free when two or more products are purchased. Destina products will also be available to purchase from selected spas and beauty salons throughout the UK. Destina has planned to approach department stores and retailers. In future, after developing a complete product range, the sales team at Destina will approach hotel chains, cruise ships and business firms to launch the product with an agreed low price as it will be supplied in bulk packaging. This approach will improve the global brand identity and will be feasible to approach international markets.
RISK ASSESSMENT HEALTH AND SAFETY RISKS As the beauty products and product testings are carried out by Cosmetics Lab, UK the risks to employees at the workplace are minimal. In the unlikely event of product damage or prolonged exposure to extreme weather while being transported from London to Newcastle in the company owned delivery van, the products will be discarded and new stock will be replaced immediately. In the case of ill health, employees will be given leave until they are fully recovered. Employees are covered with a flexible insurance scheme. Fire and theft alarm systems as well as fire extinguishers will be installed in the premises ensuring greater safety for employees. It is highly unlikely customers will experience any kind of skin allergies or complications owing to the high quality raw materials and standards followed by Cosmetics Lab, UK. If such a situation occurs the company has signed legal contracts with Cosmetics Lab and the issue will be traced back to the relevant departments. Packing staff at Destina are only responsible for final touches, preparing the boxes and promotional items to go with Destina products.
FINANCIAL RISKS Destina is financed by personal funding and lean start-up methodologies will be applied for the greater accuracy and efficiency of money handling. In the unfortunate event of a financial crisis within the company, the Managing Director will obtain a joint loan from HSBC Bank, where she holds an international bank account.
MARKET RISKS Beauty and personal care is a highly competitive and fast paced industry. Destina’s slow approach to beauty and encouraging overall wellbeing allows the brand to stand out from other competing brands. Implementing cautious PR and marketing strategies will help Destina to reach a unique audience. Collaborating with industries who share similar ethics will enhance the customer base and create networking opportunities. Furthermore, Destina will be developed as a lifestyle brand in the future, which will increase the revenue streams. Destina is ready to explore international markets, especially in Asia, as many countries in the region have shown rapid economical developments. A time rich, yet steady and impactful approach will let Destina experience and learn with the time of its business expansion.
LEGAL Practises at Destina is complied with the Regulation EC 1223/2009 of the European Parliament on cosmetic products. The main purpose of the Regulation is to ensure human safety. The Regulation is enforced by local Trading Standards Officers (TSOs). Furthermore, Destina will register with CPTA whilst the first batch of products are made and also will notify the European Commission using the Cosmetic Product Notification Portal (CPNP) prior to placing the product on the market. Each product sold at Destina, has its’ own Product Information File (PIF) and these files are accessible for inspection by the local Competent Authority. Each PIF contains The product description The cosmetic Product Safety Report Details of Good Manufacturing Practise (GMP) at Cosmetic Laboratory Limited and Destina Proof of effective claims for the cosmetic product Data on animal testing Key Documents Referred by Destina The Regulation (EC) 1223/2009 The Cosmetic Products Enforcement Regulations 2013 - SI 2013 No. 1478 BIS - A guide to the Cosmetic Products (Safety) Regulations 2008
GOOD MANUFACTURING PRACTISE Beauty products are guaranteed to be manufactured and packed in a clean environment, free from the chance to be microbial contaminated. Destina will obtain certification on Good Manufacturing Practices ISO 22716 by the International Standard Organisation (ISO) when the company set up a manufacturing plant.
LABELLING AND DESIGN The writing on Destina labels or any other packaging material that will be placed in community market is ineradicable, visible lettering and easily legible. Labels will carry the name and address of Responsible Person (RP). The labels and packaging will carry the following criterias recommended from the Regulation. EU Address of the Responsible Person Country of origin Declared quantity of contents Date of minimum durability Period After Opening (PAO) Warning statements and precautionary information Batch code Function of the product Declaration of the ingredients Declaration of the ingredients Any adverse reactions meeting the definition of a Serious Undesirable Effect will be reported to the Competent Authority by the Responsible Person and/or Distributor, without delay. Serious Undesirable Effects (SUEs) and the number of Undesirable Effects (UE) attributable to a cosmetic product are required to be kept in the PIF.
SOCIAL RESPONSIBILITY From Raw material suppliers to hired models in commercial photo-shoots all will be treated ethically. The brand has plans to work in collaboration with google earth in future where the consumer will see their product journey from raw materials till it reaches their homes enabling complete transparency. Moreover, each beauty box will contribute towards charities from countries where the raw materials are sourced. As a first project we have started supporting an elephant orphanage in Sri Lanka as our first box is made using coconut oil sourced from Sri Lanka. Destina also supports local hospitals and children’s charities based in Newcastle. Furthermore, content related to de-stressing and approach to healthy and balanced lifestyle will be routinely posted and encouraged.
LONG TERM VISION Destina plans to be developed into a lifestyle brand creating a complete holistic approach and experience. As a step forward, premium cotton lounge wear will be introduced in 2018.
Destina.
BUDGET
TIMELINE
REFERENCES
Text References Mintel. (2014).”Natural and Organic Toiletries-UK-December 2014.” Retrieved 10 December 2015, from http://academic.mintel.com/display/724377/ Mintel. (2015). “Women’s facial skincare-UK-May 2015.” Retrieved 13 December 2015, from http://academic.mintel.com/display/737703/?highlight#hit1 Mintel. (2015). “Promoting Kitchen Beauty-UK-August 2015.” Retrieved 13 December 2015, from http://academic.mintel.com/display/745747/?highlight Mintel. (2015). “The botanical oils trend threatens BPC product sales-UK-February 2015.” Retrieved 13 December 2015, from http://academic.mintel.com/display/729436/?highlight The guardian online. (2008). theguardian.com. Retrieved 10 December 2015, from http://www.theguardian.com/science/2008/may/07/1 WGSN. (2014). “Global beauty-scandinavia-October 2014.” Retrieved 13 December 2015, from http:// www.wgsn.com/content/board_viewer/#/54896/page/1 WGSN. (2015). “The beauty Buzz-Slow is beautiful-October 2015.” Retrieved 13 December 2015, from http://www.wgsn.com/content/board_viewer/#/62629/page/6 WGSN. (2015). “New in Skincare- March 2015.” Retrieved 13 December 2015, from http://www.wgsn.com/content/board_viewer/#/56603/page/6 WGSN. (2015). “Marketing and Lifestyle Beauty A/W 16/17-Elemental- March 2015.” Retrieved 13 December 2015, from http://www.wgsn.com/content/board_viewer/#/57339/page/4 WGSN. (2015). “The great Reset A/W 17/18-November 2015.”Retrieved 13 December 2015, from http://www.wgsn.com/content/board_viewer/?lang=en#/63167/page/1
Image References https://www.flickr.com/photos/serendipity_corner/19775913815/in/photostream/ https://www.instagram.com/me.time.rituals/ https://www.flickr.com/photos/anjalouise/5734230805/in/faves-140492705@N08/ https://www.flickr.com/photos/77066769@N07/11546714483/in/dateposted/
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