An Integrated Marketing Communications Plan for Kiehl’s Mens
Leonardo Fonseca M.A. Final Project Fall 2016 Savannah College of Art & Design Luxury and Fashion Management 1
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“What you get by achieving your goals is not as important as what you become by achieving your goals.� -Zig Ziglar
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Table of Contents
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Table of Contents 6 - Executive Summary 8 - Introduction 10 - Men’s History With Make-Up 14 - Company Overview 21 - Omni-Channel Audit 44 - Global Cosmetics Market 78 - Target Market 88 - Marketing Insights 98 - Primary Research 104 - Marketing Strategy 120 - Integrated Marketing Communications Plan 150 - Campaign Evaluation 153 - Conclusion 154 - References 158 - Appendix
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Executive Summary
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The men’s grooming market has evolved from being a relatively undeveloped category in beauty and personal care to having doubled its size in 10 yearsW. Due to an increase interest in male targeted products rather than unisex products, the gap between men and their use of beauty cosmetics has provided a demand in order to fulfill their wants and needs. This has made the male cosmetics industry favorable for growth where the majority of products are offered for women. Furthermore, the discussion of male versus female genders and their respective stereotyping over time has led more and more men to realize the multiple advantages of cosmetics products. This provides the opportunity to explore the potential of offering color cosmetics or ‘make-up’ to men as they have taken an active interest in not only caring for their skins health but also enhancing their appearances with immediacy.
Overall, men seek ‘undetectable, multifunctional’ cosmetic products and are pursuing retail outlets catered specifically to them. Kiehl's appeal to a large male clientele, discreet use of marketing initiatives, and beneficial skin care products provides the company with the necessary platform to fulfill this rising market trend. An integrated marketing communications plan was developed to enhance men’s awareness of Kiehl’s product offering towards them will also responding to their new demand. A combination of Kiehl’s current marketing strategies and additional tactics were implemented to promote a product line launch consisting of cross functional color cosmetics. In depth primary and secondary research of the company, their multichannel strategies as well as the male grooming industry were examined to determine the company’s capability to execute the IMC plan. Further analysis was made by exploring various marketing insights, consumer behavior and market trends to better understand the mindset of the male consumer.
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Introduction Despite the fact that the cosmetic industry is traditionally associated with women; there is an increasing demand for cosmetics by men to solve their imperfections instantly. However, the emergence and prevalence of male cosmetics brings both challenges and opportunities to sell color-cosmetic products and particularly, how to explore marketing dynamics when designing an effective strategy to appeal to these consumers. Chris Salgardo, President of Kiehl’s U.S., shared with Nielsen that he “sees men’s cosmetics as a huge market opportunity”, identifying the combined mass and prestige men’s treatment as the categories which will continue to grow Kiehl’s into a key player in the male grooming market. “Men are more conscious than ever of their appearance, and more open to talking about it or treating it than ever before,” Salgardo stated, adding that “2015 was the first year there was more interest in men’s skincare than women’s on Google, meaning real guys are showing a real interest.” (New York Times, 2015). The male niche cosmetic market is growing at a fast pace and represents a significant opportunity for Kiehl’s in the industry to expand into other sectors such as color cosmetics. In order to achieve this expansion, key success factors to consider in order to productively launch this marketing plan are: • A comprehensive understanding of the male grooming market and its trends to ensure effective marketing strategies • Target consumer awareness and engagement with the Kiehl’s brand • Product assortment must reflect Kiehl’s USP while still providing solutions to their consumer’s needs • The implementation of the integrated marketing communications strategy must align with Kiehl’s current marketing strategy to ensure their brand identity while also enhancing their brand awareness.
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Project Objectives • Increase brand awareness of Kiehl’s Men’s sector • Increase product assortment awareness • Further engage male consumers through Kiehl’s marketing strategy • Increase sales of Kiehl’s men’s sector • Elevate Kiehl’s competitive position within the male grooming market
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Men’s History With Make-Up
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Men’s History With Make-Up According to the Li and Fung Research Center, the pursuit of beauty and health is no longer confined to young women only (Li & Fung, 2005). With this in mind, the use of cosmetics products or the variation of the same throughout history has legitimized reasons why the use of color cosmetics can gain increasing popularity among men, making the cosmetics market bigger and bigger embracing the consumer’s demands.
At times controversial throughout history, men’s grooming and makeup has its origins in evolution, being criticized on religious, moral and social grounds. According to social psychology, the more a male stands out from what he considers competition, the greater his chance of attracting a mate (Sparking, A., 2005). It is for this reason men have always a predisposition to some extent towards their personal grooming and use of makeup to be prominent in a competitive society.
Men’s grooming and skin care has its origins in the word “cosmetae” which was first used
to describe Roman slaves whose function was to bathe men in perfume. Since the Egyptians, each subsequent civilization invented unique words that referred to cosmetics and fragrance as a science. Furthermore, The Greeks used the word ‘kosmein’ which conveys the thought “to decorate, to makeup, to care for and to produce harmony between body and mind”. During victorian times, men’s makeup was considered the devil’s making, and as a result, men’s grooming and their use of makeup faded.
Men’s use of makeup began with dyes and paints that were used to make-up and color the skin,
body and hair in 627 A.D. At this time, ancient British warriors known as Picts (the painted ones) used rouge and henna stains for their face and nails. During the Late Iron Age and Early Medieval periods, men’s makeup also included the use of Kohl to heavily line the eyes and eyebrows. This “makeup” was stored in special jars that were kept in special makeup boxes. Women would carry their makeup boxes to parties and keep them under their chairs, but men did not carry their makeup kits with them. (Tillburry, C., 2013).
When Alexander the Great entered the tent of defeated King Darius after the battle of Issos in
355 BC, Alexander threw out the king’s makeup box of priceless grooming ointments and perfumes. Ironically, after Alexander had traveled extensively in Asia, he too became addicted to men’s grooming products. He sent plant cuttings to his Athenian classmate in Athens from everywhere he traveled. His classmate then used the cuttings to establish a botanical garden in Athens to create skin care, makeup 12 and grooming products (Conger, C., 2000).
Men’s History With Make-Up
Around 100 AD, the Romans took men’s grooming and men’s makeup to a higher level. Men’s
grooming practices expanded to the frequent dying of their hair. Blond was the preferred color of the times, and this men’s grooming habit was intended to make-up men to look young; however, the practice was curtailed, as dyes were so caustic they had the effect of causing one’s hair to fall out.
By the middle of the 1st century in 50 AD, the dominance of the church kept men’s grooming
and the use of makeup to a minimum. Cosmetics and makeup as a specialty in and of itself began separating from medicine during the period 1200-1500. Following this, there appears to have been a separation again into two branches of cosmetics: those used for men’s grooming, makeup and skin care for the routine beautification of the skin, and those used for the correction of disorders (Tillburry, C., 2013).
Men’s grooming and men’s makeup made a popular come back during the reign of Elizabeth I
of England in 1558. Man’s use of makeup was prevalent and everyone was enthusiastically joining in the fun. Popular men’s grooming treatments included rosemary water for the hair and sage to whiten teeth., and an egg and honey mask to smooth away wrinkles (Tillburry, C., 2013).
Men’s makeup included geranium petal rouge and lipstick to suggest health, wealth and gaiety.
Unknowingly, the makeup used to whiten the skin was made with lead and arsenic, which resulted in many early deaths. Men’s grooming also included the bleaching of their hair with lye, which caused it to fall out. So men’s grooming began to include wigs, and men’s makeup included the use of powder.
During the late 1900’s men’s grooming, men’s skin care and men’s makeup began to pick up in
popularity. Elvis Presley and John Travolta were rarely featured in a film without a comb and grease to fix their hair. Advertisers seized onto this opportunity and male-specific branding emerged, bolstering the male’s contribution of the cosmetics industry. Forwarding to the introduction of the Metrosexual phenomenon in 2000, men began focusing on their grooming and the use of skin care and makeup. For example, in 2008 YSL launched the male version of Touché Éclat, the actor Johnny Depp who also used eyeliner, coining the term “Guy-Liner”. Currently, brand have tapped moderately into selling and marketing make-up, such as Tom Ford with his Boys Lipstick, launched in 2016.
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Kiehl’s Company Background Kiehl’s is a privately owned American luxury cosmetics brand retailer that specializes in natural premium skin, hair, and body care products. It started as a single pharmacy in Manhattan in 1851 and in 1921, Irving Morse, a former apprentice and pharmacology graduate from Columbia University, purchased the store.
Kiehl’s has 60 Stores in the United States, more than 400 retail stores and over 1,000 points of
sales such as fitness clubs and privately owned pharmacies. They sell at high-end department stores such as Neiman Marcus, Barneys, Bergdorf Goodman, Saks Fifth Avenue and Harvey Nichols and sold to independent stockists. They’re present 50 countries and have over 1,500 employees worldwide (Kiehl’s, 2016). The company also offers sales online, by catalog, and by phone.
In April 2000, L’Oréal Paris, the French beauty and cosmetics company acquired Kiehl’s. L’Oréal
pursued the purchase of the company for more than two years but the real catalyst for a deal came when Kiehl’s had difficulty handling the growing volume of orders due it’s growing popularity (New York Times, 2010). According to Philip Shearer, president of Cosmair, increased company publicity provoked an increase in supply and demand (Kiehl’s, 2012). Its factories could not keep up with demand, leaving many products out of stock at a crucial time and delaying the introduction of some new lines. Phone requests went unanswered and orders were backed up, cutting into the company’s reputation for good customer service. The reported purchase price for Kiehl’s ranged from $80 million to $150 million (New York Times, 2010). However, L’Oréal insisted that it would allow Kiehl’s to conduct business as it always had, with the clear intent of reassuring customers, many of whom expressed concern about the future of the company.
Furthermore, L’Oréal guided Kiehl’s into expanding in travel retail because it contributes to
maximizing exposure to travelers from around the world to the brand, increasing customer loyalty but also to recruit new highly qualified customers. Kiehl’s is one of the markets that has most contributed to the brand’s growth. More than 20% of travelers discover there the American accessible luxury brand’s experience (Kiehl’s, 2012). This new influx of travelers transforms the travel retail market, which is evolving from a business model focused exclusively on luxury towards a more diversified offer.
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Current Mission and Vision
Kiehl’s is “committed to upholding the standards that our founding family originally initiated and that have been espoused and preserved over the years”.
Values The fundamental philosophies, product standards and core values that have always distinguished Kiehl’s remain unchanged: Science, Education, Giving, Service, Respect, and Quality. One of their emphasized philosophies is respect: respecting science, product quality and their customer’s expectations (Kiehl’s, 2016).
Male Cosmetics Vision “Kiehl’s is invested in offering a distinctive experience by providing specialized products and services to the ever-changing grooming needs and demands of men”.
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Product Offering Ranking second in Vogue’s 2013 best men skincare products, Kiehl’s philosophy is about choosing the very best naturally-derived ingredients based on a blend of herbal and pharmaceutical formulas. The formulas for its products are unique and can be dated back to as far as 1850’s. Ranging from $7-$70, the look of their products also reflects the brand’s apothecary roots – as they have a homemade style packaging. While they’ve categorized their products as unisex, Kiehl’s retail stores provides a section dedicated to Men. Their target at males, although subtle, has led to 30-40% of its customers being males. Not spending on advertising helps Kiehl’s offset its higher U.S. manufacturing costs. They expect to manufacture almost 10 million products globally in 2015. (Transparency Market Research, 2014). When Kiehl’s realized its gift bags were being made overseas, they switched to manufacturing them at home, even though the price tag was four times higher. Kiehl’s believes its U.S. manufacturing resonates with its consumers. “When the recession hit … we all were seeing so many jobs go overseas, that ‘Made in America’ became not only this stamp of really quality, but it was about supporting the country that we live in,” (Chris Salgardo, 2013).
Kiehl’s Product Offering Skincare
Body Care
Haircare
Moisturizers
Body Moisturizers
Shampoos
Targeted Treatments
Fragrance
Conditioners
Cleansers
Scented Cleansers
Treatments
Scrubs and Masks
Scrubs
Styling products
Toners
Hand and Foot treatments
Eye and Lip care creams
Shaving products
Sun Care products
Pre-shave products
Serums
Anti-aging products
Healthy Skin Essentials
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cover page
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Kapferer’s Identity Prism
Created by Jean-Noel Kapferer, a French professor of marketing strategy, there are six highlighted key elements that are considered as very effective tools for building brand identity. This model is helpful in understanding Kiehl’s customers experience and its history and determining how customer perceive the brand. These included: physique, personality, culture, relationship, reflection and selfimage. According to the professor, a brand will be considered strong if it is capable of incorporating all features into an effective effort to avail a concise, transparent and appealing brand identity.
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Physique
– Kiehl’s is a natural skin care and hair care brand who back up their product offering
with long time research to ensure the product quality. The company’s marketing activities are also consistent with the brand value, focusing less on mass advertising, and their word of mouth method. The brand image and the product design is perfect match with their apothecary roots and overall brand themes. Kiehl’s logo is a simple, classic black and white two colors. It is a sign of a very clear, clean this flag resonate with their own skin care products.
Personality – Kiehl’s uses their product packaging using recycled material, caring
for their
environment. They proudly portray themselves by being a transparent brand which is an advantage to increase their image and attract more customers and repeat purchases.
Culture - Kiehl’s is an American family owned company, created 160 years ago by a pharmacist. With more than 160 years in the business, Kiehl’s has been successful because of the quality of products there is a long history of research and innovation. Their products are made of natural ingredients and don’t have any chemical additives.
Relationship - Kiehl’s is a brand that is actively involved with their consumers. They provide excellent customer service by listening to the needs of consumers and establishing a long-term relationship of trust. They use tactic such as “Try it before you buy it”, offering customer with samples that show the confidence of their own products and own brand.
Customer Reflection - Today’s customers demand specialized skin care products. As a solution, Kiehl’s cares about them and continue to provide new suitable skin care product assortments. They provide suitable advice to their customers who then recommend the brand to their family and friends.
Self-Image
– Overall, Kiehl’s intends on making their customers feel good about the benefits the
products consume provides as well as the customer service as part of a positive retail experience.
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Omni-Channel Audit
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Omni-Channel Audit According to L2, retailers that have an Omni-channel business strategy are more likely to reach a higher level of customer satisfaction and do better over-all as a company (L2, 2014). Because of the digital age becoming more and more relevant, consumers are finding it increasingly useful to have the answers to their buying questions available at their fingertips. L2 tracked 72 brands in their 2014-2015 Omni-channel Retail Studies. Only six launched in-store inventory visibility across their online channel, including Kiehl’s, Abercrombie & Fitch, Ann Taylor, Neiman Marcus, and Saks Fifth Avenue.
Kiehl’s currently utilizes both e-commerce and brick and mortar as part of their Omni-channel
strategy. Their channels include their company webpage, events, personalized customer service, mobile apps and social media.
In-store and online branding efforts are important to Kiehl’s, providing the retailer with a clear
point of differentiation and understanding they’re individual customers, and how to best serve them. Kiehl’s links online and in-store databases to digital campaigns through databases created from web signups, in-store profiles, and historical purchase behavior. Kiehl’s social media presence includes Facebook, Twitter, Instagram, Pinterest and YouTube. They utilize these platforms interact with their followers and promote products and events.
An evaluation of the channels will contribute to identifying opportunities and risks in integrating
these channels as part of the marketing strategy.
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Webpage The Google Page Rank PR Checker has given Kiehl’s an overall website popularity rating of 6/10 points in 2015. In 2014, Kiehl’s saw a 11.59% increase in revenue per visit to its website after it combined its visitor segmentation and on-site behavior to create a targeted personalized experience (HiConversion, 2014). The Company began by splitting shoppers into groups based on their status (new and returning) and interest in either Product Line A and Product Line B through their digital campaigns. For new visitors, interests were implied on search engine keywords. As for registered customers, Kiehl’s used profile data to measure alignment toward either product category. Visitors in each of the segments were targeted with one banner on the home page. If a customer clicks on it, the offer remains persistent throughout the shopping experience. If the customer doesn’t click on it, further banner offers appear until all banners have been exhausted. By segmenting customers into small groups based on clicks and purchase behavior, Kiehl’s has empowered each customer with choices while also tracking a customer’s habits throughout the entire shopping experience.
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Webpage Features
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Webpage Features
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In-Store Experience Kiehl’s believes in “Making for better citizens, better firms and better communities.” (Kiehl’s, 2012). Kiehl’s is known for their exemplary customer service and retail brand experience. According to Frances Alberto, employee at a Kiehl’s Store, located in Savannah, Georgia, Kiehl’s does not hire make-up experts, instead they look to hire a diverse range of people who are “naturally engaging and have an aptitude to learn and teach about cosmetics” adding, “When we are educating our employees, one of the first things we teach is the Kiehl’s approach to service, for which our motto is ‘We’d rather make a friend than push a sale, instead of selling, they get to be educators and problem solvers.”
Kiehl’s employees are referred to as KCR’s (Kiehl’s Customer Representatives). They’re considered
to be professional beauty consultants who have undergone intensive training that educates them in the chemistry, and the use and application of Kiehl’s products. The staff even wears standard clinical looking lab coats to exude their professionalism. According to Indeed’s website for company reviews, current and former Kiehl’s employees found it a fun and well managed environment within to work (Indeed, 2016). Kiehl’s guarantees the quality of its products. It has a 28-day return policy for customers who are unsatisfied with their purchases, which portrays their confidence in their skin care products.
As part of the retail experience, the retail partner’s greet their customers, inquiring them about
the purpose of their visit and identifying their needs, leading to suggestive sales. Employees provide the customers with samples of products, so they’ll be able to try instead of purchasing the product without a trial and also provide suggestions as to what other products can be used complement another. To finalize the experience, Kiehl’s partners always offer a follow-up for continued treatment and offer samples to try to ensure a repeat purchase.
The customer service provides consumers with an overall satisfactory shopping experience if
implemented correctly. Because of the wide range of products offered, Kiehl’s is able to focus on products that solve each customer’s problems. The environment is an educational one as the employees and packaging provide clear information on ingredients and purpose.
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In-Store Experience Kiehl’s brand team recreates the look and feel of the original New York boutique wherever you find the brand. The vintage motorcycles in their store and Mr. Bones skeleton are found found in every Kiehl’s store. The brand also maintains its close ties with the medical community from which it was born, utilizing simple, vintage like displays to emphasize their roots with reclaimed tin ceilings, antique fixtures, and subway tile accents. Products are assorted depending on purpose and samples are strategically placed for consumers to try before a possible purchase.
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Additional Store Services Spa 1851 Kiehl’s Spa 1851 manages to combine cutting-edge technology with high concentrations of the efficacious, natural ingredients. The spa employs full-time aestheticians and specialized practitioners who administer facials, hair and scalp treatments, massages, body treatments, and men’s grooming. All treatments incorporate Kiehl’s products, but masks are custom-blended on the spot according to the customer’s skin’s needs.
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Additional Store Services Kiehl’s Barbershop Kiehl’s barbershop salons within the shop offers a full-service shaves and haircuts. They also evaluate the condition of their customer’s skin, create an assessment and recommend appropriate products. Services include facials, close-shavers squadron services, old-school brush and blade shaves and full face and head shaves at prices running up to $80.
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Technologies Tablet Devices In 2013, Kiehl’s implemented the usage of a tablet device shared between both the associates and customers. The tablet-based consultation tool is used capture personal data, create an individual beauty regime, and then leverage this information via email or print as part of an ongoing relationship with the consumer.
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Technologies SMS Messaging In addition to its tablet pilot program, Kiehl’s launched a geotargeted SMS initiative that sends out targeted messages to opted-in consumers when they pass by one of the company’s physical locations. Since then, 86 percent of consumers in the program reported that they were happy with it. Additionally, 73 percent made a purchase after receiving a message (Mobile Commercial Daily, 2013).
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Technologies Kiehl’s Snap and Shop Mobile App In 2013, Inspired to create a new and different shopping experience for their, Kiehl’s wanted a better way to connect their print ads to sales. Through a collaboration with SpyderLynk’s SnapTags, they were able to create a whole new shopping experience with Shopping Walls. The app enables an easy purchase of products, reviews and browse the extensive collection of products, also serving as they’re official app (Spyderlynk, 2013). Kiehl’s mobile version of the e-commerce website appears to provide a better user experience than that of their webpage if accessed through the computer. They contain all the same features. When you are standing in front of a Kiehl’s SnapTag Shopping Wall you simply need to open the Kiehl’s Snap & Shop application, hover over the SnapTag next to the product to add the product to your shopping bag.The purchase will be fulfilled through Kiehls.com and shipped to you. If you are not in front of a Kiehl’s Shopping Wall, you can still shop using the application. Just search or browse for the product you want.
Key features Location awareness Mobile activation Image recognition Payment and loyalty SDK Libraries Social plugins
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Technologies Email Kiehl’s utilizes e-mails to promote offers, sales and new products. E-mails consist of order updates, new products and daily sales offers. The marketing aligns with the brand as its formatted identically to their main webpage and mobile app and can be accessed through the email. In order to receive Kiehl’s emails, customers can sign up upon accessing the webpage, in-store or through the snap and shot app.
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Social Media As brands have established a stronger presence on social media platforms, competition for attention has increased exponentially. Analyzing Kiehl’s brands social media activity will help to ensure efficient marketing content via social media and deliver a message that resonates with the desired target market. Kiehl’s is on five major social networks: Facebook, Pinterest, Twitter and YouTube. Utilizing the same content in their respective social media platforms.
Kiehl’s Social Media Presence Followers
Posts
Likes/Views
1.5K
N/A
1.5M
74.5K
1,200
N/A
9.6K
26 Boards
N/A
76.3K
14.5K
14K
Snapchat
N/A
N/A
N/A
*Data recollected May 1, 2016
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Social Media
A new Pew Research Center analysis found that men and women have a similar amount of social networking sites usage in 2015, consistent with their findings in 2014. Some 73% of online men use social media, which is on par with the 80% of online women who say they do so. (Pew Research Center, 2015). Although the overall percentage of men and women who report using social media is now comparable, there are still some gender differences on specific platforms. Pinterest, Facebook and Instagram have a larger female user base, while online discussion forums like Reddit, Digg or Slashdot attract a greater share of male users.
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Social Media Facebook Kiehl’s has a fan base of 1.5K followers and 1.5M views and likes. Furthermore, the company has 3.4K reviews and is rated 4.3 out of 5 stars. Kiehl’s posts about once daily which usually consists of product image ads, events, current promotional ads and news related to their philanthropy initiatives.
Their page contains the “Show now” button, which will automatically link the visitor to their
promoted product page. They also implement an ‘offers’ tab adjacent to the wall posts as part of suggestive selling by highlighting a new product. Kiehl’s interacts with consumers via Facebook, replying to their comments and reviews. They offer assistance or information to users, recommending further contact to solve any issue or uneasiness.
According to Pew Research Center, fully 72% of online American adults use Facebook, a proportion unchanged from September 2014. Usage continues to be especially popular among online women, 77% of whom are users; 66% of men are users, In addition, 82% of online adults ages 18 to 29 use Facebook, along with 79% of those ages 30 to 49 (Pew Research Center, 2015). 36
Social Media Twitter Kiehl’s has more than 74.5K followers and 1,300 posts. Like their Facebook page, the company also posts once per day, posting product image ads, events, promotional ads, and news related to their philanthropy initiatives. Because of its immediacy, Kiehl’s interacts more with fans on Twitter; retweeting or liking tweets if the company hashtag ‘#Kiehl’s’ is utilized.
Pew Research Center indicated that 23% of all online adults use Twitter, a proportion that is identical to the 23% of online adults who did so in September 2014. Internet users living in urban areas are more likely than their suburban or rural counterparts to use Twitter. Twitter is more popular among younger adults — 30% of online adults under 50 use Twitter (Pew Research Center, 2015). Moreover, for companies who do gender-based targeting, it should be noted that the number of male users exceeds the female users. 37
Social Media Instagram Currently, Kiehl’s posts mostly product-related images which are high quality, visually appealing. Their Instagram page is followed by 77.7K followers and have 11161 posts. Posts on Instagram are consistent with those of Facebook and Twitter, utilizing the same images for all accounts. What differs is Kiehl’s interaction with followers and the type of posts they include. Apart from their own footage, Kiehl’s also picks and posts Instagram pictures tagged by their followers.
In the United States, Instagram continues to be popular with non-whites and young adults: 55% of online adults ages 18 to 29 use Instagram, as do 47% of African Americans and 38% of Hispanics. Additionally, online women continue to be more likely than online men to be Instagram users (31% vs. 24%) (Pew Research Center, 2015). 38
Social Media Youtube Kiehl’s YouTube channel has 180 posts, 187 followers and 94K views. Videos include campaign ads, behind the scenes footage, interviews with Kiehl’s spokesperson and miscellaneous content of the brand. Though viewers can comment and rate the videos, Kiehl’s does not interact with users.
YouTube’s platform has a huge audience, reaching 81.2 percent of Internet users in the United States, according to a survey realized by ComScore data. Unsurprisingly, younger visitors tend to spend more time on the site. YouTube is still fairly male dominated. Men spend 44 percent more time on the site per month, and of 51 categories of YouTube content measured by OpenSlate, men in the U.S. make up the majority of viewers in 90 percent of them (Open slate, 2015).
For
YouTube
advertisers,
buying
beauty and style channels through Google Preferred, which bundles the top 5 percent of YouTube channels in any given vertical for ad buys will reliably reach women, particularly young teens and millennials. Beauty and style is a popular category, with 582 million monthly views across its top 100 channels (OpenSlate, 2015).
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Social Media Snapchat Kiehl’s recently created a Snapchat account in May 2016. Snapchat is primarily used for creating multimedia messages referred to as “snaps”; snaps can consist of a photo or a short video, and can be edited to include filters and effects, text captions, and drawings. Kiehl’s currently uses their snapchat to post snaps of their different stores worldwide and other miscellaneous content. Snapchat reported that with 32.9% penetration, Snapchat was the third most popular social app among 18-34-year-olds (behind Facebook and Instagram, but ahead of Twitter, Pinterest, and Vine).
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Social Media Pinterest Kiehl’s has 9.8K Followers, 906 pins and 26 boards. The boards are divided by different categories such as customer favorites, new products, events and product categories. There’s only one “Men’s” board dedicated to photos of the product offering available to the men consumers.
In the United States, Women continue to dominate Pinterest – 44% of online women use the site, drastically compared with only 16% of usage online from men. Those under the age of 50 are also more likely to be Pinterest users – 37% do so, compared with 22% of those ages 50 and older (Pew Research Center, 2015). 41
Findings After auditing Kiehl’s current marketing strategies, the following conclusions were reached: •Specialized customer service is essential to Kiehl’s. They have provided approaches such as creating consumer profiles, and free samples to obtain a clear vision of the appropriate products. •Kiehl’s webpage includes features such as live chat, customer service, auto-complete in their search bar and detailed product information. Further features could be implemented to offer consumers more purchase options. •Kiehl’s has stable branding throughout all of their social media. The contents are not only about its products or promotion, but the contents also show interaction with customers. Additionally, various contents on each social media site make Kiehl’s easy to target different markets. •As Kiehl’s identifies as a unisexual brand, there is no clear marketing branded towards men or women. In order to further attract their male customer, the brand should create distinct content aimed at the male consumer. Overall, Kiehl’s currently provides an efficient Omni-channel strategy. Nonetheless, focusing marketing strategies towards the male sector is crucial. Further research will indicate what approaches should be integrated to entice male consumer and also improve customer engagement.
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Omni-Channel Evaluation
Criteria Customer Engagement Brand Awareness Customer Service Product Information
Criteria Customer Engagement Brand Awareness Customer Service Product Information
Store Experience
Website
Technologies
App
* * * *
* * * *
* * * *
* * * *
* * * *
Social Media Snapchat Twitter
Instagram Facebook
* * * *
Legend
* * * *
* *
* * * *
N/A N/A
*
*
* * * *
Social Media
* * * *
Youtube
* * * *
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Global Cosmetics Market
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Global Cosmetics Market The Global Cosmetics Market was $460 billion in 2014 and is estimated to reach $675 billion by 2020 growing at a rate of 6.4 percent and currently consists of 18 thousand businesses (Ibisworld, 2016). The United States is one of the largest cosmetics market in the world, and its revenue is expected to exceed $62 billion in 2016. A rise in increasing disposable income, changing fashion trends, and improvement in the living standards of the consumers drive the cosmetic products market (Ibisworld, 2016). There has also been an increasing demand for advanced and sophisticated cosmetic products as an important driving factor in the market.
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Global Segmentation
Within North America, the United States is the biggest cosmetic market. Asia Pacific leads the cosmetic industry with a market share of 35 percent in 2014, this is attributed to the fact that customers are relatively beauty conscious and centered in perfecting their personal appearance (Businesswire, 2015). It is estimated that its total revenue will exceed about $62 billion U.S. dollars and employ about 63,816 people by 2016 (Statista, 2015). About $17.3 billion U.S. dollars was generated by online shops and mail-order household sales in 2013. Cosmetic sales are estimated to continue to grow in both the United States and other global markets, as many consumers feel that beauty products help in achieving social and economic goals.
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Product Categories and Distribution Channel’s
The distribution channels such as supermarkets, department stores, pharmacy & drug stores, specialty stores, beauty salons, Internet retailing, and shopping complexes play an essential role in meeting the demand cosmetic products. Aggressive investment in marketing/branding/advertising in addition to the increasing counts of the sales representatives have kept the domestic and international corporations competitive.
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Key Players
Leading brands in the cosmetic products market include L’OrÊal Group, Unilever, Procter & Gamble, Estee Lauder, and Shisheido. These continuously invest in research and development to introduce new products as per the market demand. Considering this, these companies are also expanding their facilities to increase their production capacity and strengthen their global network. These are also the competitors for the male grooming market. Due to an increasing demand for men and natural products, companies now rely on mass branding techniques to help the beauty products get greater visibility and popularity.
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Male Grooming Market The US Men’s grooming market is valued at $5.5 billion and makes up 8 percent of the global cosmetic market (Dewolf, 2015). With the grooming industry earning record revenues and niche sectors such as “men’s” rapidly gaining market share, the male cosmetics sector is becoming essential to the overall cosmetics industry. Since 2012, beauty and personal care launches specifically targeted at men has experienced double digit growth globally by more than 70 percent in 2014 hitting $4.1 billion (Yahoo Finance, 2014).
Steady growth was explained by the widening acceptance of men’s spending on “female-
related” product claims as well as technologically advanced products, expanded lines, and innovative packaging are also stimulating sales (Mintel, 2015). According to Nielsen, there has been social and demographic changes in both mature and emerging markets: an increased number of men employed in the sector of services with an increasing income, heightened competition in the workplace, ageing baby boomer’s eager to stay stylish, and the young generation influenced by changing standards of male beauty in the media (Nielsen, 2015)
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Global Segmentation
The number of product launches for men will still be low in comparison with products for women, but the industry should expect to see a further segmentation of men’s grooming, particularly in the developed markets where there are opportunities. Over the past two years, the U.S. was the most active in terms of new product launches, accounting for 21% of global new men’s grooming products, according to Datamonitor Consumer’s Product Launch Analytics tool. In skin care, there will be growth in products designed not only for different skin types but also for different degrees of stubble.
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P.E.S.T.L.E. Analysis
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P.E.S.T.L.E. ANALYSIS
Political The two most important laws pertaining to cosmetics marketed in the United States are the Federal Food, Drug, and Cosmetic Act (FD&C Act) and the Fair Packaging and Labeling Act (FPLA). The Food and Drug Administration regulates cosmetics under the authority of these laws. In the United States cosmetics are officially regulated by as a result of the Food, Drug and Cosmetic Act passed in 1938. There is also a self-regulatory group, Cosmetics Ingredient Review, which studies chemical compounds in products. A change in FDA’s legal authority over cosmetics would require Congress to change the law. •Federal Food, Drug and Cosmetic Act - Prohibits the marketing of adulterated, violations involving product composition, whether they result from ingredients, contaminants, processing, packaging, or shipping and handling; or misbranded; referring to violations involving improperly labeled or deceptively packaged products. cosmetics in interstate commerce. •Fair Packaging and Labeling Act – States that packages and their labels should enable consumers to obtain accurate information as to the quantity of the contents and should facilitate value comparisons. Therefore, it is hereby declared to be the policy of the Congress to assist consumers and manufacturers in reaching these goals in the marketing of consumer goods (FDA, 2016). Granted that governments have the influence on the health, education, and infrastructure of a country, L’Oréal’s companies, such as Kiehl’s may get affected by the legislation for advertising in the United States. Their advertising and marketing can now be qualified under demerit goods, a good or service whose consumption is considered unhealthy, degrading, or otherwise socially undesirable due to the perceived negative effects on the consumers themselves and is over-consumed if left to market forces; or a merit good , which are those goods and services that the government feels that people will under-consume, and which ought to be subsidized or provided free at the point of use so that consumption does not depend primarily on the ability to pay for the good or service. Consequently, Kiehl’s manufacturing ensures safe products which doesn’t encompass any harmful substance or any kind of efficiency. 53
According to Kiehl’s Webpage, “Kiehl’s is committed to upholding the highest standards of safety for all the products it makes and sells. We adhere to the most rigorous standards for product safety so that our customers can purchase and use our products with complete confidence. We want you to know that:
Kiehl’s is in full compliance with FDA regulations as well as the European Union 7th Amendment
Cosmetic Directive and the requirements for safety in all of the countries in which our products are sold. Each and every ingredient used in our products has been thoroughly reviewed and tested by our internal safety team, made up of toxicologists, clinicians, pharmacists and physicians. Every product formulation that Kiehl’s manufactures is screened and tested for safety before it is marketed to consumers. Kiehl’s confidently and proudly stands behind each and every product that we sell, and we pledge that we will always uphold the highest standards of safety for our customers around the world.”
Economic The U.S. is the fastest-growing of the developed economies in 2015. The 2.4% pace of growth helped to considerably reduce the slack in the country’s labor market and strengthen household and corporate finances (Focus Economics, 2015). The U.S. economy features a highly-developed and technologicallyadvanced services sector.
The cosmetics industry has been affected by the continuous weakness of the dollar and other
currencies internationally (Euromonitor, 2014). Fluctuations in interest and exchange rates have affected cost of capital. This instability has affected the costs of importing and exporting goods and how a business grows and expand. According to Yahoo Finance, regardless, the cosmetics industry is less sensitive to economic cycles compared to other discretionary items like automobiles, and demand falls slower in times of recession and picks up rapidly in times of economic recovery (Yahoo Finance, 2014).
Mergers and acquisitions continue to boom in the beauty and cosmetics sector. According to
a report published by Mergermarket, attainments of mid-market businesses are illustrative of strong interests as cosmetics companies seek to acquire smaller brands to expand their portfolios to boost growth. The annual number of acquisitions within the US beauty market rose to 70% in 2015 from 63% in 2014 (Mergermarket, 2015). 54
Social According to Euromonitor, sales in cosmetics market would continue to grow in part as a result of increasing counts of working professionals. According to Nielsen, While Millennials have been hit hard by the recession they, also make up a larger percentage of those with $2 million + in assets than Gen X. Besides having a progressively increasing disposable income, they are highly aspirational in their demands concerning their emergence of urban POS worldwide, such as hyper-markets, department stores, supermarkets, shopping malls as well as traditional shops have also increased sales (New York Times, 2015).
Today, online sales are also changing the way consumers buy their products by simply clicking
a button. Similarly, organic industry also continuous to outrun the complete beauty division industry. Increased customer interest in non–toxic products has also resulted in investments on concept stores. Additionally, there’s been an increasing pulsation on innovative makeups, such as BB Creams, hair masks and whitening products, which start out in Asia–Pacific and eventually establishes in in big markets such as the United States, Canada, and United Kingdom (WGSN, 2014).
Technological New advancements in technology have an immense impact on the whole consumer discretionary industry. An increase in e-commerce selling over the past years allow consumers, especially male consumers, easier and quicker access to the products they need, especially grooming products. Although the growth of social media and online marketing has positively affected consumer spending, it has also led to more visibility of companies. Companies are investing in having a good standing with the public, especially with social media making the consumer more powerful than ever.
Cosmetics companies are also using more advanced technology to introduce products to
digital consumers. Brands such as Maybelline and Yves Saint Laurent are implementing software that recognizes facial features and has been engineered to identify skin tones and print the exact pantone onto foundations, blushers and lipsticks. Developed by L’Oréal in the US, Makeup Genius is a beauty app that uses facial mapping technology to transform your iPhone or iPad’s front-facing camera into a virtual mirror where you can ‘try on’ L’Oréal Paris products. In 2014, YSL beauté, launched a partnership with Google Glass to allow makeup artists to capture makeup sessions on video from a subjective point of view and demonstrate application techniques.
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Legal According to a 2016 report by People for the Ethical Treatment of Animals (PETA), over 250 cosmetics brands still use this practice, affecting what the Royal Society for the Prevention of Cruelty to Animals (RSPCA) estimates to be over 27,000 animals each year. A Nielsen survey of more than 1,000 adults found that “not tested on animals” was the most important packaging claim amongst consumers of beauty products, with 57 percent of respondents selecting this over competing claims. Meanwhile, 43 percent of respondents said they would be willing pay more for products that had not been tested on animals.
According to the Animal Welfare Institute, a national animal advocacy organization, the Animal
Welfare Act (AWA) is the only U.S. federal law that covers animals in research. Enacted in 1966, it regulates the care and use of animals in research, testing, teaching, exhibition, transport, and by dealers. While the USDA and the AWA and IACUC systems purport to ensure “humane” treatment of animals in labs, the system is plagued with loopholes that leave animals with little to no protection. Recent incidents at several major research institutions point to profound inadequacies within the federal enforcement program, and to AWA regulations that are so limited that physical and psychological cruelty and suffering continue.
As Kiehl’s is under the L’Oréal brand, who has been accused of testing on animals, the company
has been accused with the implementation of animal testing on their products. Nonetheless, Kiehl’s has stated that:
We at Kiehl’s do not conduct animal testing on our products or ingredients, nor ask others
to test on our behalf, except when required by law. As we continue to expand globally and reach our customers around the world, it is our practice to do our part towards advancing the science of safety and validated alternative methods that eliminate the need or requirement for any animal testing globally.
In 1989, L’Oréal voluntarily stopped using animal testing for the evaluation of its entire range
of finished products. The company has invested more than $1 billion over the last 25 years to develop innovative, alternative methods to animal testing, particularly in the area of reconstructed tissue development. L’Oréal and Kiehl’s are totally committed to a future without tests on animals.
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Environmental Due to the new social trends that have led to consumers desiring more natural products, companies have been able to discover new ways to use natural ingredients instead of synthetic products. When using natural ingredients, preservation and stability issues must be taken into consideration. According to Organic Monitor, a “green� market research firm, many cosmetic and skincare companies are finding difficulties in preserving their natural ingredients in their products consistently with some products changing odor and color and losing effectiveness. Because Kiehl’s uses manufactures their natural ingredients in their products, main factors such as major changes in the weather and climate in the United States can affect how the company operates. Furthermore, increasing awareness to climate change is affecting how companies operate and the products they offer.
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Competitors
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Competitors Innovation in grooming industry is driven by constant streams of product launches, acquisitions, mergers and efficient marketing. These strategies address the extremely popular niches that serve specific customer needs. Moreover, competitors often enhance each other’s marketing model’s as well as distribution strategies to boost the volume of product sales. In order to get a greater grasp of the companies and brands that exist in the premium men’s skincare strategic group, a mapping of the existing players in the United States based on average price point for products as well as which distribution channels were evaluated. Kiehl’s competitors include Clinique, Lab Series, Origins, Aveda, Mënaji, 4VOO, House of Formen, and Sephora. This analysis will further indicate the potential threat these may be to Kiehl’s based upon their current marketing strategies and business model.
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Aveda was created in 1978 in the USA and is owned by Estee Lauder. They specialize in haircare products, skincare, makeup, perfumes, aromas and plant-based products. The company’s product assortment emphasized on having 100% clinically tested and are respectful for the environment. Aveda’s products are mostly distributed in over 3,000 beauty salons and spas worldwide and range from $16-$68. Their product philosophy is centered in Ayurveda healing and aromatherapy.
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Sephora is a French chain of cosmetics stores founded in 1970 and is owned by luxury conglomerate LVMH. They feature nearly 300 brands, along with its own private label. Sephora offers beauty products including makeup, skincare, body, fragrance, nail color, and haircare. The company also has a men’s section which offers colognes, shaving tools, cleansers, moisturizers and other beauty products specifically for men ranging from $8-$50. It also provides beauty services, including custom makeover and personal one-on-one services. In addition, the company offers beauty classes, as well as a client loyalty program, which provides clients with access to gifts, event invitations, and select products. Further, it sells products through its online store.
Proclaiming itself as the “globe’s first professional male cosmetic house”, House of Formen is an e-commerce company that manufactures male color cosmetics. The company’s offices are located in Toronto, Canada and New York City. Their product assortment
includes
concealers,
BB
Creams,
Powders and moisturizers ranging from $18-$99.
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Clinique for Men: Clinique is a division of Estee Lauder. Clinique was launched in 1968 with skin care and makeup products that are all allergy tested and fragrance free. Their products are marketed as part of a three-step system: cleanse, exfoliate and moisturize; aimed at both men and women. Their claim is that their products work because they’re 100% dermatologist engineered and believe strongly in the quality of their products and manufacturing facilities (Clinique, 2016).
The products are marketed primarily through department stores, independent stores and
pharmacies worldwide. Their products range from $14-$50. With its men’s range called ‘Skin Supplies for Men’, their approach is practical and well directed at men, using charcoal grey packaging to enhance a masculine look. In late 2012, a men’s ‘Dark Sport Corrector’ was created (Clinique, 2012). Most of Clinique’s products tackles problems men suffer including skin marks, scars and shaving.
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4VOO (pronounced ‘forvous”) is a men’s skin care & cosmetic’s company. The company is dedicated to producing premium skin care products and enhancement products that work with a man’s skin to provide lasting visible results. Products are developed using the expertise of a team of independent Industry specialists. 4VOO offers a variety of products in skincare and men’s makeup fluctuating from $19-$210. Within the makeup selection, powder, bronzers and lip balms are offered. The Brand is recognized by professional skin care professionals and celebrities such as George Clooney, Johnny Depp, Zac Efron, among others.
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Origins is one of the original brands under the Estée Lauder company. The brand now has approximately 2,000 stores globally and plans to expand by opening around 90 stores in China. Its mission is to create high-performance natural skin care products using potent plants, organic ingredients and 100% natural essential oils (Origins, 2016). Its products are priced from $16-$37 and manufactured using renewable resources, wind energy, and earth friendly practices
Mënaji is a global brand specializing in the design, formulation, marketing, and distribution of affordable premium men’s lifestyle products, specifically skincare and hi-definition, undetectable cosmetics. All products range from $7-$78 and are designed, formulated, and manufactured in the United States. The company mainly sells and distributes their products online, select premium department stores such as Nordstrom, and independent prestige bricks and mortar establishments in select foreign markets (Mënaji, 2016). 64
Lab series is also a division by Estee Lauder group for men has long implemented formulas powered by technology and scientific research to address s men’s skincare and grooming needs. Distribution wise, they’re located in limited number of stores such as department stores, upscale perfumeries, and specialty stores. They’re product assortment consists of an all in one face treatment lines to fitting any lifestyle. Lab series skincare for men has introduced innovated new products that reinforce high-tech and performance skincare for men, including anti-aging, brightening, moisturizers and sun protection, ranging from $17$80. Innovation is prominent in their products with the introduction of tinted BB Moisturizer, which is seen as a big step forward for men’s skincare with the introduction of a color pigmented product. With this product, Lab Series has been described as “once again ahead of the game!’.
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Product Assortments
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Products
Price Points
Sizes
Kiehl’s
$8-$80 (avg. 36)
0.5 fl. oz. - 4.0 fl. oz.
4VOO
$19-$210 (avg. $96)
0.5 fl. oz. – 6.0 fl. oz.
Aveda
$18-$68 (avg. $25)
5.0 fl. oz. - 9.0 fl. oz.
Clinique
$14-$50 (avg. $13)
0.3 fl. oz. - 5.0 fl. oz.
House of Formen
$18-$99 (avg. $41)
1.0 fl. oz. – 4 fl. oz.
Lab Series
$17-$80 (avg. $31)
0.5 fl. oz. - 8.5 fl. oz.
Mënaji
$7-$78 (avg. $36)
0.4 fl. oz. – 6.0 fl. oz.
Origins
$16-$37 (avg. $11)
0.3 fl. oz. – 6.7 fl. oz.
Sephora
$8-$50 (avg. $21)
0.3 f. oz. - 8.0 fl. oz.
Distribution Channels Department Pharmacies & Brick and Mortar Stores & Travel Drugstores Retail
E-Commerce
Kiehl’s
*
*
N/A
*
4V00
N/A
N/A
*
*
Aveda
*
*
N/A
*
Clinique
N/A
*
*
*
House of Formen
N/A
N/A
N/A
*
Lab Series
*
*
*
*
MĂŤnaji
N/A
*
N/A
*
Origins
*
*
N/A
*
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Perceptual Map & Positioning Map
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Perceptual & Positioning Map Kiehl’s positioning without the product extension*
Kiehl’s positioning with the product extension*
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S.W.O.T. Analysis
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S.W.O.T. Analysis Strengths •The company’s strong heritage and brand identity reinforces their credibility as strong players in the cosmetics industry. •Kiehl’s extensive product range enables them to reach a larger target market, allowing them to appeal to all different types of male consumer’s skin types and needs. •Kiehl’s investments in Research & Development have helped them to create superior quality cosmetic products, incorporating natural ingredients, adding an additional benefit to their products. •Employees provide customers with unique retail experiences, offering a thoroughly customized assessment of the customer’s skin types and product combinations to provide a solution. •Kiehl’s use of discreet marketing and advertising, avoiding mass advertisements has maintained the brands desires of being exclusive, but not unattainable.
Weaknesses •Though Kiehl’s marketing aims is to remain discreet, this may affect the consumer’s awareness of the brand. •Their weak social media presence concentrates mainly about product promotions and do not receive much traffic through their pages, contributing to their low brand awareness. •USP of fine products products can also be offered by competitors. In order to gain a competitive advantage, a clear product development must be developed to differentiate. •Product assortments mainly address woman’s needs, creating a lower Market Share in men’s grooming due to 65% of the customer base are mainly female. •Kiehl’s only manufactures in United States, risking operational failures due to any miss happenings in the company’s supply chain.
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S.W.O.T. Analysis Opportunities •Increasing number in male service sector since 2012 in emerging markets provides Kiehl’s with the opportunity to tap into this industry, providing new product and business expansions. •Leverage of L’Oréal as a parent company for networking, market penetration and financial backup. •Aggressive marketing will help Kiehl’s elevate their competitive positioning.
Threats •Kiehl’s has strong competition in the facial care industry, since they provide similar products to their customers which are in the natural skin care. •Growing niche competitions and aggressive marketing efforts contribute to sales. As Kiehl’s opts to not mass advertise, this provides competitors with the leverage to capture the attention of possible consumers. •Mass distribution products are more accessible to consumers, diverting attention from the brand.
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Market Trends
Premium and Niche products -
According to Mintel, “innovation in the category will
continue to grow, bringing fresh new products to the shelves” (Mintel, 2015). Niche products that offer a premium feeling of indulgence are a micro trend predicted by Mintel and can offer consumers something that they may not gain from mid-point products. Growing concerns on the long term effects due to usage of cosmetics is forcing the companies to bring in naturally derived products as well. An example is targeted cosmetics, providing specific solutions to specific problems.
Personal Care Appliances - “Men enjoy gadgets and features and they like to see technological improvements, such as the new product development coming through shaving” (Euromonitor, 2012). Personal care electrical appliances are used both by men and women for personal grooming purposes. Such products include hair care, oral care and other personal hygiene products that are battery or electricity operated. This is illustrated from the continuous increase in price of the established products, due to a trend in premium products.
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Market Trends
Anti-Aging
- Datamonitor maintains that the next frontier in men’s grooming products will be
to target “menopausal” men in their 40s and 50s (Datamonitor, 2014). Traditionally ignored due to their lack of interest in grooming products, these older consumers lead active lifestyles and are more conscious about their appearance and health than earlier generations. Some niche brands have been quick off the mark to recognize the potential spending power of this demographic, claiming to offer a more youthful appearance by reducing surface lines and enhancing firmness.
Multi-beneficial Products - “Men are generally task-oriented creatures and they like to see clear links between behavior and outcome” (Beresford, 2010) and product technology now allows for a product to have a variety of functions. To address busy consumers’ lifestyles, beauty and personal care companies are focusing on products that tap multiple benefits. Euromonitor identified an increase in innovation in products to make them simple and more easy to understand and use. According to Nicole Tyrion, Euromonitor’s Beauty and Care Analyst has specifically pin pointed multi-functional products that target specific areas. Witnessing this is the popularity of BB face creams. Brands are presenting creams that deliver five visible benefits to hydrate, illuminate, even, firm, and correct.
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Market Trends
Color Cosmetics
– Traditionally a much harder sell to the male market. According to Thinking
research director, Will Ullstein, men see grooming products as addressing a problem, while women may have a more recreational or experimental approach” (Ullstein, 2011). This scientific element helps to draw the line between something they are using for a purpose rather than for cosmetic or beauty reasons. Predictions about using makeup have been created, however, these haven’t penetrated the surface of men’s awareness. According to Elle’s Beauty Editor, Joel Walker “There’s is still a stigma around men wearing makeup and it’s a sensitive topic, but in developed markets, men rely on more basic cosmetics, such as lip balms and, on rare occasion, foundation. In emerging markets, men dabble in a wider variety of cosmetic products, using lip gloss in addition to lip balm, and BB creams in addition to foundation” (Elle Magazine, 2013).
Genderless Trends
- According to a report
by Trendwatching.com, “People of all ages in all markets are constructing their own identities more freely than ever”. As a result, consumption patterns are no longer defined. TWhis isn’t about a man wearing a skirt; it’s about a changing mindset with men—their eye for fashion has changed. Men aren’t so concerned about their masculinity anymore” (GQ Magazine, 2015).
Nevertheless,
the fashion industry has been pushing gender boundaries by embracing androgynous aesthetics and blurring the line between male and female ideals. At Gucci’s fall 2015 show, new creative director, Alessandro Michele sent men down the runway in chiffon blouses, pussy bows, tailored for the male form. Trends such as male purses, shoes with thick heels and feminine inspired haircuts have 76also been present on the runway.
Market Trends
Beards – The beard trend is not going unnoticed by men’s grooming brands, although the newest beard-specific products are being launched by niche players. According to Datamonitor, beard grooming products grew to 42 percent in 2014 (Datamonitor, 2014). Beard upkeep can be a simple task of finding a suitable oil to keep the beard moisturized and looking its best. This presents opportunities for beard cleansers and conditioners for full beard wearers, as well as beard colorants. This latest trend opens up further opportunities for facial hair care products, including balms and waxes, to help the user keep their moustache in shape, tame stray hairs or create different styles.
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Target Market
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Target Market The intended target market for Kiehl’s are millennial males between the ages of 25 and 34, and Gen X males between 35-45 years old. Due to the wide gap in age, the consumers are segmented into two distinct lifestyles as their motivations behind the consumption of the product extension may vary.
The first segment includes the Trendsetters, ranging from 25-35 years old. The second segment comprises of the Maven’s, who are between the ages of 46-45 (Oracle Group, 2015).
According to Nielsen, the markets where Millennials are most highly concentrated reflect their desire to live in more socially conscious, creative environments. With the resurgence of cities as the centers of economic energy and vitality, Millennials are opting to live in urban areas over the suburbs or rural communities. In order to attract Millennials, suburban communities can start to adopt urban characteristics.
62 percent indicate they prefer to live in the type of mixed-use communities. This a factor in the rise of “New Urbanism “, which takes successful urban design principles and applies them to suburban development, including an emphasis on diversity in cultural communities, pedestrian and transitfriendly areas, environmental consciousness, mixed housing types (single family, townhomes and apartments), historic preservation and public parks for community gathering. Accordingly, Nielsen suggest that spending smart marketing dollars on multicultural consumers today will result in many more years of consumption and consumer loyalty throughout their lifetime and increase the return on investment of those dollars spent.
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Preference for Living in Urban Areas
Concentration of Millenials and Gen X in Urban Areas
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Trendsetters
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Trendsetters The Trendsetters are the second youngest segment of Millennials, 61% of them are between the ages of 25-35 and is mostly dominated by ethnically diverse group of males such as African-Americans, Asians and Hispanics and Caucasians (Oracle Group, 2015). Being affluent, highly educated, and ethnically mixed, these consumers are post-grad or young professionals with an income greater than $60,000 per year. The segment is addressed for middle-class singles and couples who are more preoccupied with successfully balancing work and leisure pursuits. Their psychographics suggest they are highly active, ambitious and ready to take on the world.
Trendsetters are tech savvy and keep themselves updated through their social media networks.
Considered the most outgoing group, their tastes are reflected in their liberal ideals, knowledge of popular culture, alternative music, and lively social life. The environments they frequent are typically trendy apartments and condos, fitness clubs and clothing boutiques, casual-dining restaurants and all types of bars.
According Nielsen, this is the group that is most likely to start a trend and shop based on “what’s
cool�. According to Oracle, Trendsetters are the ones in your store and they appreciate an interactive experience with interesting in-store visual communications. This segment also expects a no-hassle return policy, customer appreciation and positive interactions with sales associates. Trendsetters are easily swayed into purchasing through social media outlets such as Twitter and Facebook. External advertising including billboards, TV commercials and flyers are also touchpoints that they tend to notice.
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Alex Mckinsey Age: 27 Location: Los Angeles, California Education: Masters in Journalism Occupation: Correspondent on E! News Income: $65,000 Marital Status: Single Hobbies: CrossFit, Social events, Renovating old cars Interests: Sports, Pop culture, Fashion Media Consumption: Men’s Health, GQ, Esquire
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Mason Medina Age: 35 Location: Manhattan, New York Education: Bachelor’s in Business Management Occupation: Club Manager Income: $74,000 Marital Status: Engaged Hobbies: Cooking, Basketball, Politics Interests: Car Shows, Music Events, Technology Media Consumption: Complex, Hype Beast, ESPN
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Mavens The Mavens segment is considered to be the older version of the Trendsetters. The group is comprised of upper-midscale, and ethnically diverse 36 to 45 year-old urbanites. They range from being single or divorced but are more likely be married or in a committed relationship. Mavens are referred to as educated, empty nesters or DINK’s (double income, no kids) households with well-paying professional careers. They are a big fan of health and wellness practices, innovative technology and enjoy travel and leisure-intensive lifestyles. Mavens can also be identified within the “Experiencers” consumer group, presented by the Values and Lifestyles (VALS), a propriety research methodology. According to VALS, Experiencers are consumers that are primarily motivated by self-expression. These are enthusiastic, and impulsive consumers excited about new opportunities. They’re avid consumers and are willing to spend a high proportion of their income on fashion, entertainment, and socializing activities. As such, these consumers will seek variety and excitement in all aspects of their life. The Mavens are always excited to try the newest products but usually after the trend has caught on. They are avid consumers and are willing to spend more of their income on fashion, health and beauty, entertainment, and socializing activities. They tend to seek out shopping at retailers with a variety of options for everyone in the household. Recommendations by a friend or family member are a major driver to purchase for this group. They also appreciate the look and feel of the retail store as well as whether it carries the correct variety of brands.
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Lucas Day Age: 40 Location: Miami, Florida Education: Masters in Photography Occupation: Art Director Income: $94,000 Marital Status: Divorced Hobbies: Camping, Sailing, Art Expositions Interests: Fine dining, Travel, Architecture Media Consumption: Times, Wall street Journal, Vogue
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Marketing Insights
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Marketing Insights Cosmetic products are marketed to influence customers to believe that it can improve or treat their appearance. As physical attractiveness appears to be an essential factor in determining their levels of self-esteem, men are progressively paying more attention to beauty patterns and have become more susceptible to products alternatives. According to Euromonitor, several factors have contributed to this rise in both developed and emerging marketing. The factors include: • Increased number of men employed in the workforce • Increased competition in the workplace • Rising income has allowed more consumers to buy more cosmetic products • Ageing baby boomer’s eager to stay stylish • Younger generations influenced by changing standards of male beauty • Explosion of the male grooming regimes in the media
In order to gain a better understanding, various consumer and marketing insights concerning
place, product, price and promotion were collected. The purpose was to determine what aspects to consider when developing the marketing plan.
Promotion
- Despite the huge potential of the men’s market, both brands and retailers still need
to find the most effective way to communicate with these new male consumers. “They have still not developed specific communication strategies for men, and the sales universe are still very much women-oriented, especially in selective distribution (Chris Salgardo, 2013). According to Max Herlant, make-up artist, “It is clear that brands cannot approach the men’s market as they do with the women’s one (Premium Business, 2012). Indeed, many men can remain squeamish about products that seem too feminine. Thus, as far as male products are concerned, some words and colors are considered taboo. Retailers and brands have begun investing heavily in creating an engaging, enjoyable store experience for men, which is becoming a necessary distribution strategy in men’s grooming (Euromonitor, 2014). WProduct – According to AFR, men’s products need to be multi-taskers. While there are men who are just as obsessed with new products and grooming in general there are also men who would prefer to have one product that does four different jobs. They are results-orientated, not necessarily pricedriven. Because they have thicker, oilier skin so formulations need to be a bit different in order to effectively penetrate the skin. 90
Marketing Insights Place
- Male grooming products today are defined by their retail distribution channel.
The
proliferation of cosmetic products in different retail outlets has been majorly responsible for it. These channels enable cosmetic brands to diversify and reach potential male buyers, while still serving the niche customers. Growth prospects of the beauty products are further enhanced by the rising demand for beauty services (Mintel, 2014). As the market is growing retailers are devoting more shelf space to men’s beauty products but still finding it challenging to offer a relevant environment. In an attempt to make the male consumer more comfortable, most men’s skincare brands have worked hard to separate themselves from the female beauty industry.
In the U.S.A., department stores such as Nordstrom and Macy’s are creating separate sections
dedicated solely to men, cosmetics chain Ulta rolled out in-store boutiques called the Men’s Shop, CVS Pharmacy has created Guy Aisles in its stores, and skin-care brand Kiehl’s is building Shave Bars inside its stores. The internet is a much more comfortable and anonymous place for men to get information about products, unfortunately, the distribution of beauty products for men still happens in places that feel very feminine, like department stores or perfumeries like Sephora” (Chris Salgardo, 2015). Many brands and retailers are actively working to secure major share in online cosmetic product industry as a preferred medium for the sale of cosmetics in United States. simply at the click of a button. This sale medium accounted for around 60% of U.S. cosmetics market in 2014 (Datamonitor, 2014).
Packaging - With 1 in 5 U.S. Millennials seeking custom or personalized packaging, digital printing is positioned to grow well beyond industry estimates that it’s already accounting for 10% of packaging decoration globally (Beauty Packaging, 2016). For men products, marketers have to pay attention on the package design because package is the first thing that customer sees, so it should present product in an desirable and suitable way to draw the customer’s attention.A key difference when it comes to male product and packaging is that men are more interested in what the product does for them”, (Frances Alberto, 2016). In addition to upper market, the finest brands design more plainly styles and less descriptive on their product package. They believe that their customer has already known well what they want 91
Consumer Behavior A combination of U.S. surveys provided by Euromonitor, Mintel and Nielsen were integrated to better understand consumer preferences and behaviors and better identify trends suitable for Kiehl’s key target consumer.
Nielsen According to Nielsen, the gender difference revolves around three distinct areas: our personal and professional relationships, the need for information and entertainment, and consumer behavior. The company performed a survey between men and women to get at a closer look into today’s rapidly evolving digital behaviors highlights the differences between what engages men and women.
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Consumer Behavior Men and women around the world agree that the growth of social media as a news source is more positive (78%) than negative (22%). In fact, a greater percentage of women (28%) get more than their news from social media sources than men (25%). Comparatively, more men use social media than women for business reasons (27% vs. 22% for women). Men are also twice as likely as women to use social media for dating (13% vs. 7% for women). When it comes to taking action on the advertising, the media seems to inspire fewer women globally than men. A greater percentage of women say they do not take action compared to men across the board. For example, 48 percent of women say they never take action on social media ads, compared with 42 percent of men. 56 percent of men interact more with brands compared to women with 39 percent. More women (59%) also do not take action on mobile phone text ads compared with men (52%). 93
Consumer Behavior Euromonitor Euromonitor polled over 6,600 consumers in over 16 different countries in 2014, asking respondents a range of questions related to their attitudes towards style and appearance, grooming habits, purchase frequency and responsibility, and approach to the buying process. They further explored typical male grooming habits and analyzed differences in the habits of men in emerging and developed market.
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Consumer Behavior
Mintel Worldwide, one in two men report using at least one type of cosmetic product (Mintel, 2015). In developed markets, men rely on more basic cosmetics, such as lip balms and, on rare occasion, foundation. In emerging markets, men dabble in a wider variety of cosmetic products, using lip gloss in addition to lip balm, and BB creams in addition to foundation. According to Euromonitor, retailers and industries should be on the lookout for men in emerging markets to potentially indulge in more traditionally female cosmetic products, while keeping the focus on neutral and basic male-branded lip balms and concealers for men in developed markets who are less focused on style (Euromonitor, 2015). According to Mintel, in the United States: • 86% of men prefer their daily grooming routine to be as simple as possible. • 24% of men say they are worried about skin ageing • 17% about oily skin. • 52% of global male consumers consider their looks and appearance to be important • But only 29% touch up their looks throughout the day. 95
Consumer Behavior NPD Group NPD administered an online survey fielded from April-May to a nationally representative sample of men and women 18+. The participants were screened for product usage and for purchasing men’s grooming products in the past year. According to the survey, while 80 percent of men use grooming products, facial skincare is the category with the biggest opportunity to expand usage (NPD Group, 2015). The survey also presented other inferences such as: • Overall, most men classify themselves as minimalists when it comes to their level of engagement with grooming products. • Facial skincare users are most likely to have a more developed grooming routine and use at least a few products every day. • This behavior is driven by Millennials, who outpace their peers in facial skincare usage and are most enthusiastic about the grooming category as a whole. • Younger users seek facial products with preventative and aesthetic benefits, while older users look for those that protect and reinvigorate. 96
Consumer Behavior
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Primary Research
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Primary Research In addition to secondary research, primary research was conducted during the final week of April to find information on current customer habits, demand and to identify distinct characteristics of male cosmetic consumers. Research Goals • Understand male purchasing behavior • Provide perspective from the retailer’s perspective • Gain insight on male consumer’s product demand
Research Design Five employees from stores such as Kiehl’s, Clinique, Sephora, GNC, and MAC cosmetics; located in Oglethorpe Mall in Savannah Georgia, were interviewed. Topics discussed included customer purchasing habits, promotions initiatives, favorite products, and potential receptiveness to a color
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Interview Questions
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Interview Questions
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Interview Questions The Kiehl’s employee was asked additional questions to further understand their relationship with their male consumers.
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Research Conclusions The interviews in combination with previously realized surveys about male consuming habits and cosmetics presented key factors to consider to launch the integrated marketing communications plan. Key findings based upon primary and secondary research: • Product assortment must contain multi-functional benefits for men. • Product regime must be agile as men do not care to take too time on the personal care. • Benefits including acne prevention/treatment, oil/shine control, and pore minimizing are more important to Millennials, while moisturizing/hydrating, sun protection/SPF, and anti-aging are among the top for older facial skincare users. • Men prefer their own environment to be able to experiment with “feminine” associated products. • All marketing and product development efforts must appear as “discrete” for the male consumer to be receptive.
• Packaging must be attractive and evoke masculinity.
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Marketing Strategy
Marketing Strategy
The primary goal with this integrated marketing communications plan is to expand Kiehl’s product offering to men in the male grooming industry through a new product extension category such as color cosmetics. As men are more invested in their personal appearances, color cosmetics provides an immediate solution to a man’s complexion that normal treatment skincare products cannot. Despite its lack of advertising, the brand has figured out an efficient way to communicate with its customers. Though Kiehl’s identifies as a unisexual brand, there is a stronger marketing towards women than men. Nonetheless, in order build a stronger engagement with Kiehl’s male consumers, the company will have to improve their overall marketing strategy. This will support in establishing Kiehl’s growth in market share parallel to the rise in the male cosmetics industry, elevate their competitive positioning and also engage a niche target market. In order to meet with these objectives, primary and secondary research provided more leverage to successfully execute this IMC plan. The results delivered substantial information to implement the adequate strategy. Additionally, a crucial aspect to note was to also harmonize with Kiehl’s current marketing strategies as this has distinguished them. Conducive to achieving these goals, a product assortment of multifunctional color cosmetics was created. The IMC was also devised to gain consumer awareness with the brand.
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Creative Brief
Creative Brief The name given for this product extension was ONE. Through primary and secondary research it was discovered that men want an agile process in order to consider applying make-up. ONE is based on the idea that these products can be applied under ONE minute and each product requires a ONE step application. Furthermore, it provides emphasis on Kiehl’s identity as a unique brand which provides offering for everyone. Bold text and colors such as orange, silver and navy blue were utilized to attract male consumers and are currently accent colors implemented currently in Kiehl’s products.
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Creative Brief Logo
One product for all men.
Tagline 107
Products According to Datamononitor, there are two key user groups: • Men who use products to help maintain good personal hygiene, health and wellbeing • A new breed of man who buys products with the sole intention of improving their physical appearance
This contributes to one of the main reasons why men have a dissimilar demand for the products than those of women. “A Men’s skin is oilier, tougher, and bigger prone and older look than the real age… almost everything should be particularly designed for the differences”, L’Oréal Paris’ research reported (Kiehl’s Report, 2012).
Primary and secondary research led to the conclusion that men seek undetectable, multifunctional cosmetic products. Thus, a multifunctional color cosmetics line for Kiehl’s will be created. The products will be offered in natural skin tone colors, ranging from light to dark skin tones and skin types. They will target key issues such as anti-aging, sun protection, full natural coverage.
As this a new product launch, the packaging will be developed with a more masculine aesthetic but still follow Kiehl’s current packaging style. A mix of bright and dark colors and simple bold text will be the applied. The products will be available in Kiehl’s standard sizes as well as travel size for men to use it on the go.
These elements will be able to attract the targeted male consumer in a new way without appearing feminine because of the use of color cosmetics. The range of items will reflect the evolving consumer habits and a desire for more sophisticated products.
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Products Overview
Product
Tinted DD Cream
Face and Body Bronzer
Lip Mask
Oil Control Powder
Anti-aging eye cream
Beard Dye
Price
$40
$27
$21
$35
$35
$25
Size
5.4 oz.
5 fl. oz.
0.52 oz.
1 oz.
2.5 oz.
2.7 oz.
Ingredients
Mineral-based
Benefits For all skin types Moisturizes Color corrects all tones Self-adjusting coverage Instant coverage SPF Protection Antiaging
Botanical extracts Essential oils Vitamins Minerals
For all skin types Natural looking tan effect Smooth looking coverage SPF Protection
Organic agave jojoba oil, vanilla extract antioxidants
Natural tints SPF protection Hydrates and conditions Smoothens lines
Chamomile, Lavender Rosemary Sage Peppermint
Reduces irritation Controls oily skin Prevents acne Easy puff applicator
Shea butter Coconut, Avocado Sunflower seed oils
Treatment concealer Deep nourishment Treats appearance of lines, wrinkles, discoloration, dark circle, age spots, redness
Pure Henna Vitamin enriched 100% chemical free
Evens all facial hair pigments Semi-permanent Fast Non-drip application
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Products Overview
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Products Overview
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Tinted DD Cream
DD Cream has multiple meanings such as “Dynamic Do-All,” “Dermatologically Defining,” and “Daily Defense”. DD creams are multifunctional corrective beauty balms with self-adjusting coverage and mineral-based, broad-spectrum SPF protection. Great for all skin types including those with sensitive skin, these versatile “five-in-one” formulas are designed to do it all. They treat with high levels of active skin care ingredients; moisturize and smooth dehydrated skin; prime and perfect skin’s surface; camouflage and color correct the skin tone; and protect skin from the sun with SPF. They can be used as a last step for their skin care benefits or used on their own as an instant beautifier. Additional benefits include the following: self-adjusting coverage; antiaging; hydrating; defending; evening skin tone; minimizing pores; blemish soothing; reducing redness; firming; brightening; priming; enhancing vibrancy; refining; mattifying; and nourishing.
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Face and Body Bronzer
The face and body bronzer gives, natural-looking tan effect without streaking and without exposure to harmful UV rays. Its light tint bronzes on skin types. It can also deepen and prolong one’s natural tan while providing a rich uniform smooth looking coverage. Ingredients include botanical extracts, essential oils, vitamins, minerals, and substances derived from natural sources including pure silk and moisturizers that protects the skin.
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Lip Mask
Featuring natural shades, the tinted lip mask provides SPF protection and enhances your natural lip color. This hydrating lip treatment corrects and conditions lips for a smooth, youthful-looking finish. It is fortified with a high concentration of ultra-nourishing, age-delaying ingredients including hyaluronic spheres to penetrate the skin, fill in wrinkles, and plump the appearance of lips, and help smooth fine lines and define the lip area. This innovative, natural formula nourishes, and moisturizes lips with a bioactive blend of organic agave nectar, jojoba oil, vanilla extract, and antioxidants.
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Oil Control Powder
The anti-oil powder was designed for oily skin types, effectively reducing oil and leaving your skin matte and smooth. A five herb complex—chamomile, lavender, rosemary, sage, and peppermint— reduces irritation and helps control the skins oil. It diminishes the oily appearance, tightens pores, soothes irritated, inflamed skin, and prevents skin concerns such as acne. It consists of a soft, ultrahydrating, natural-looking easy-application tube with a puff applicator. The easy-to-use tube allows you to simply dab the product onto your face for a luminous look.
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Beard Dye Cream
Beard hair usually is a lighter color than the hair on your head, and this uneven blend of colors can cause you to look much older than you really are. The beard and brow dye are all semi-permanent. Dye colors range from blonde to black. It also can be applied to any facial hair such as mustaches, sideburns, and eyebrows. Its purpose is to have a natural coverage, works in 5 minutes and has an easy non-drip blend in formula. The dyes contain pure Henna with all natural herbs; it is safe and natural, vitamin enriched, vegan and most importantly 100% Chemical free.
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Anti-Age Cream
Infused with shea butter, coconut, avocado, and sunflower seed oils, it delivers deep nourishment. treatment concealer that delivers highly pigmented perfect coverage, anti-aging technology to help treat the appearance of lines, wrinkles and discoloration, conceal dark circles, age spots and redness, conceal facial imperfections without settling into lines and wrinkles; and helps to diffuse the appearance of wrinkles instantly.
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Place The placement of this cosmetic line will be through Kiehl’s e-commerce, retail stores and points of sales within the United States. The product will also be offered in free standing Sephora stores. These provide an advantage to be placed in a mass market with a men’s sector without over exposing the Kiehl’s brand. The selection of these stores were chosen based on their location in key metropolitan markets with active customer traffic and high concentrations of the intended target consumer. The cities to be included in the launch include California, Chicago, Miami, New York and Washington, D.C. The selection was also supported based on a 2014 rank of cities established by the number of storefront businesses in and near all of the largest metropolitan areas in the U.S. by The Storefront Index (view appendix 1). Product placements in Kiehl’s’ international markets may be potentially following a thorough evaluation of the campaign and product launch to assess its performance.
Kiehl's Product Placement
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States
Kiehl’s
Sephora
New York
68
60
California
67
80
Chicago
23
40
Washington
32
44
Miami
12
20
Subtotal
202
283
TOTAL
485
Place
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Integrated Marketing Communications Plan Promotion A combination of Kiehl’s current marketing strategies and other diverse tactics were developed to create a cohesive integrated marketing communications plan. The intention is to generate more engagements with the Kiehl’s consumer through this product extension.
The Company’s traditional approaches such as sampling, brand ambassadors, and philanthropy have been prepared with a focus on this new product. The Company’s multichannel strategies such as their website, mobile apps and technologies, social media and in-store experience have been modified and enhanced to highlight their brand offering to the male consumers. Finally, alternate strategies like placements in print ads, television commercials, and online streaming services were added.
Creative Brief The name given for this product extension was ONE. Through primary and secondary research it was discovered that men want an agile process in order to consider applying make-up. ONE is based on the idea that these products can be applied under ONE minute and each product requires a ONE step application. Furthermore, it provides emphasis on Kiehl’s identity as a unique brand which provides offering for everyone. Bold text and colors such as orange, silver and navy blue were utilized to attract male consumers and are currently accent colors implemented currently in Kiehl’s products.
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Integrated Marketing Communications Plan Logo
One product for all men.
Tagline 121
Integrated Marketing Communications Plan Kiehl’s In-Store Experiences Kiehl’s prides themselves in establishing an ongoing relationship with customers and providing them will an excellent retail experience. From the moment one enters, employees provide their customers with the necessary tools to purchase the appropriate products that will benefit them. As Kiehl’s employees are trained to understand customer their consumers need, they perform assess their overall skin care and habits to further suggest a correct regime. However, more opportunities exist to better engage, educate and persuade Kiehl’s male consumers to purchase.
In-Store Sales and Promotions Kiehl’s has centered its business operations on its belief that natural word-of-mouth is an integral part of Kiehl’s advertising. L’Oréal has faithfully adhered to Kiehl’s founding family approach of not advertising the Kiehl’s brand. For Kiehl’s, it’s all about the ‘pull’ of word-of-mouth. Beyond profit they believe that the brand and quality product compels customers to do their advertising for them. In order to further attract customers, visual merchandising and window displays will be employed at Kiehl’s stores. The merchandise will be placed at the front of the store to immediately attract the attention of the consumers. Committing to its “try before you buy” approach in marketing its products, Kiehl’s will provide free samples of the new product to customers. This helps to signal the quality of their products, as well as convey the strong confidence in the effectiveness of its skin care, body care and hair care product ranges. Samplings of the product will also be offered as part of the services included in Kiehl’s Spa’s and Barbershops to cover all services provided by the brand. The products will also be eligible for Kiehl’s “My Kiehl’s” reward system as part of their promotions for the launch.
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Integrated Marketing Communications Plan Tablet Devices Kiehl’s currently utilizes tablet devices to perform their consultations. According to a 2014 Insights report by SapientNitro, 53% of consumers prefer shopping in-store vs other channels, and 61% want to use “any device” (PC, smartphone or tablet) to help them shop (Sapient Nitro, 2014). Consequently, cosmetic brands are implementing facial recognition software called “virtual mirrors” that scans facial features. These mirrors are augmented reality systems that blend live video images with virtual/digital elements on the same screen. The systems have been engineered to analyze the areas in which the users apply makeup, defines the makeup areas’ pigments and blends the product them accurately with their skin tones. Incorporating virtual mirrors will allow male consumers to preview and personalize their purchases without actually applying and removing makeup. Because male consumers are skeptical towards color cosmetics, the implementation of this technology can reassure or dissuade those who are not willing to try out this product. Customers simply scan in the bar codes from cosmetics and the virtual mirror will show what they would look like with the makeup applied. It also will suggest the appropriate shades and products. The technology will complement Kiehl’s customer service practice and introduce an innovative interactive experience to their stores.
Kiehl’s App Kiehl’s Snap and Shop App enables an easy purchase of products, reviews and browse the extensive collection of products. Like their webpage, Kiehl’s app is can appear outdated, unappealing and could be more user friendly. Enhancing the apps design will result in more user interactions. Kiehl’s promotes their app as a feature app but not as the brands official mobile application. This can confuse customers who are interested in browsing through it rather than use the snap and shop feature. Modifying Kiehl’s app to an official app will lead users to have another connection with the brand. They can then highlight their snap and shop as an app feature. The app will also implement the same virtual mirror feature so the consumers can have the same experience as they would in doors. The app will also benefit from segmenting by genders when downloaded or updated. Creating a masculine aesthetic for the male users will generate a more specialized experience, especially towards the male consumer market for this marketing initiative. 124
Integrated Marketing Communications Plan
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Integrated Marketing Communications Plan Celebrity Ambassadors Kiehl’s emphasizes on their word of mouth marketing, products are promoted by explaining their retail experience and product effectiveness to their peers. The company has also relied on its celebrity fans, including Julianne Moore, Pharrell Williams, Oprah Winfrey as spokespersons to promote its products. In the US, celebrity endorsements are estimated to be used in between 20% and 25% of ads (Wang, LC., 2007). The reason for its popularity is the belief that celebrities are attention-getting and likeable, and that they can transfer positive associations to the endorsed brand. According to Nielsen, an endorsement campaign by an artist has been shown to increase a brand’s market share by as much as 2.4 points among the artist’s fans.
Brand Ambassadors will be a crucial part of the marketing strategy. Those selected to endorse Kiehl’s will be carefully chosen in order to further enhance the brand image and have a reputation that fit into the brand’s image and culture. Kiehl’s Brand Ambassadors will use their social media to interact with Kiehl’s brand and their consumers by advertising the campaign. They will be part of various marketing footage such as behind the scenes of the official campaigns and interviews. They will also be advocates for the philanthropic initiatives involved with the product launch. A combination of 7 male public figures ranging from social media stars to celebrities will be chosen to talk about the product. They will be associated with the brand and the product and will be influenced to also utilize the products because their credibility. Their different personal, cultural and professional backgrounds encompass professions which are always in front of the cameras, proving that the product can result beneficial to look better. These male ambassadors include:
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Integrated Marketing Communications Plan Kit Harington
Kit Harrington plays one of the most favorite and appealing characters in the series as Jon Snow. He rose to prominence playing the role of Jon Snow in the award-winning HBO television series Game of Thrones. After each new episode of Game of Thrones, Harrington Tweets with fans, asking about their opinions and forecasts for the next episode. He also thanks them for supporting the show and his character.
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Integrated Marketing Communications Plan Anderson Cooper
Anderson Cooper is an American journalist, author, and television personality. He is the primary anchor of the CNN news show Anderson Cooper 360°. The program is normally broadcast live from a New York City studio; however, Cooper often broadcasts live on location for breaking news stories. In addition, he is a major correspondent for 60 Minutes. Cooper is openly gay; according to The New York Times, he is “the most prominent openly gay journalist on American television.
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Integrated Marketing Communications Plan Stephen Curry
Golden State Warriors point guard Stephen Curry has gained attention since 2013. He won the 201415 season MVP award and then went on to lead his team to their first NBA Championship since 1975 this past June. According to a recent poll by 120 sports, Curry is the favorite athlete of Millennials, the coveted 18-to-34 age demographic. “He embodies the spirit of this generation, people can relate to him, he’s not the biggest guy but works hard at his craft. He’s so likable” said Emigdio Gamboa, the director of marketing for 120 Sports. Curry shows his love for his daughter before and after games, and he posts various videos and photos of them together doing different activities on social media. Since then, Curry’s fan base has gone through the roof, not only for his play on the court, but also for his actions off the court involving his family and others.
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Integrated Marketing Communications Plan Leonardo DiCaprio
Leonardo DiCaprio is an American actor and film producer. DiCaprio has been nominated for six Academy Awards—five for acting and one for producing—and in 2016, he won the Academy Award for Best Actor for The Revenant. It seems that Twitter has determined that DiCaprio’s win was the most tweeted moment in Oscar history with 440,000 tweets a minute beating Ellen DeGeneres’ Oscar selfie at 255,000 tweets per minute in 2014. DiCaprio is a committed environmentalist. He established the Leonardo DiCaprio Foundation in 1998, a non-profit organization devoted to promoting environmental awareness. Although concerned with all areas of the environment, it focuses on global warming, preserving Earth’s biodiversity and supporting renewable energy. In early 2016, at a meeting with Pope Francis, he gave a charity donation and spoke about environmental issues. He has donated generously to many charitable organizations disaster relief to education. In April 2013, DiCaprio donated $61,000 to GLAAD, an organization which promotes the image of LGBT people in the media. 130
Integrated Marketing Communications Plan Idris Elba
Idris Elba is an English actor, musician, voice actor, and DJ. He is best known for his portrayal of drug baron Russell “Stringer” Bell in the HBO series The Wire, and since then, he has become widely known as “one of the sexiest men on the planet.” Even though he was playing ruthless drug dealer, the Elba made fans both men and women root for him. When his character was killed off in Season 3, there were protests outside the offices of TV channel HBO in the States. He has been nominated five times for a Golden Globe for Best Actor in a Miniseries or Television Film, winning one, and was nominated four times for a Primetime Emmy Award. He has been nominated five times for a Golden Globe for Best Actor in a Miniseries or Television Film, winning one, and was nominated four times for a Primetime Emmy Award.
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Integrated Marketing Communications Plan Pharrell Williams
Pharrell Williams is an American singer, rapper, and record producer. In May 2012, Williams launched i am OTHER, a multimedia creative collective and record label; i am OTHER also serves as an umbrella for his additional business endeavors, including a dedicated YouTube channel and apparel/textile lines. Williams is currently a judge on The Voice, one of the most watched shows in America. He also owns a non-profit organization called “From One Hand To AnOTHER” (FOHTA). FOHTA is an educational foundation developed for youth between the ages of 7 and 20 in at-risk communities throughout the country. According to its website, its mission is to “change the world one kid at a time by giving them the tools and resources to meet their unique potential”. Williams is building a $35 million afterschool center in his hometown Virginia Beach.
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Integrated Marketing Communications Plan Jim Parsons
Jim Parsons is an American actor mainly known for playing Sheldon Cooper in the CBS sitcom The Big Bang Theory. The sitcom is the # 1 most watched show in U.S. Parsons has received several awards for his performance, including four Primetime Emmy Awards for Outstanding Lead Actor in a Comedy Series and the Golden Globe Award for Best Actor in a Television Series Musical or Comedy.
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Integrated Marketing Communications Plan Kiehl’s Website According to the 2011 annual report of L’Oréal, Kiehl’s goal was to currently extend its men’s market and to develop e-commerce. As the report revealed, “the brand is looking to increase its men’s skincare market share substantially, and is making sure everything is in place: effective and original formulas, and easy shopping in the store”. Kiehl’s webpage includes useful features such as live chat, customer service, product reviews, word completion in the search bar, detailed product information and also lets customer verify product availability in nearby Kiehl’s points of sales. Additionally, registered consumers have a ‘My Kiehl’s’ account which offers convenience of saving their personal information. Despite this, the website looks outdated and lacks aesthetic appeal. The page is crowded with small text and images, presenting too many elements at one time. This makes it difficult for users to read and navigate through the page and resulting in an overwhelming shopping experience. Optimizing the overall aesthetic of the page by integrating higher quality images, better font and user interface will entice users. Primary research revealed that men prefer to have their own environments. In order to entice men, Kiehl’s “men’s” page should provide content that’s directed specifically towards them. By creating a cohesive but distinctive page within Kiehl’s webpage will invite male consumers to browse more through the page. Like their app and in-store technology, the Kiehl’s website will also implement the virtual mirrors. Because the accounts can be connected through multiple devices, users will be able to either take a new picture or upload one from the Kiehl’s app to the account and use the feature.
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Integrated Marketing Communications Plan Kiehl’s Social Media Kiehl’s has stable branding throughout all of their social media. The contents on their social media are all posted simultaneously and with little frequency. Though Kiehl’s labels themselves as a unisexual, their social media provides opportunities to increase their frequency of posts towards their male consumers. The company will enhance their online presence through constant publications of product campaigns, behind the scenes footage, promotions and consumer participation. This will motivate men to engage with Kiehl’s and further develop a higher consumer base. Kiehl’s will utilize Facebook, Instagram, Snapchat, Twitter and YouTube to promote the product extension.
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Integrated Marketing Communications Plan Social Network Advertising Apart from their purpose to create and generate user-generated contents, social media networks such as Facebook, Instagram, Twitter and YouTube are utilizing social network advertising or social media targeting. The online advertisements use profile data to deliver targeted ads directly to individual users. Information provided by social media users such as demographic information, interests, and images are accessed by social media targeting software’s and enables advertisers to create display ads with characteristics that match those of social network users.
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Integrated Marketing Communications Plan YouTube Kiehl’s will utilize their YouTube page to frequently upload videos with different topics and themes aimed at men. Their advertising videos, store footage, behind the scenes and simple how to videos to further educate their male consumers about the brand and the product extension.
Facebook Kiehl’s Facebook page will post photo and video content such as product advertisements, promotions, behind the scenes footage from photoshoots, consumer and employee testimonials, and events to interact with their male consumers and create buzz. Posts encouraging Facebook users to express their experiences and rate the product will also be shared to gain more feedback from consumers.
Kiehl’s currently utilizes Facebook’s advertising options such as Sponsored Stories, Page Post
Ads and Promoted Posts. Each alternative serves as an opportunity to further reach customers and generate more brand awareness. -Sponsored Stories are built around user activity. Advertisers simply pay to highlight an action that users have already taken on the social network or within a Facebook-connected app. That action is shown to a user’s friends, either in the sidebar or in News Feed. -Page Post Ads are advertisements that begin as posts on a fan page but get additional paid distribution among fans, friends of fans, or non-fans within News Feed or the sidebar. Page Post Ads can be links, photos, videos, offers, events, questions or statuses, allowing for a lot of creative freedom. These ads can be shown to anyone on Facebook, even if users are not connected to the page themselves or through a friend. -Promoted Posts are similar to Page Post Ads because they originate as a piece of content on a page, but they are bought through the Promote button on a post itself rather than through the ad tool, Power Editor or API. Promoted Posts are only shown to a page’s existing fans, with an option to reach friends of fans as well. Promoted Posts also do not have allow for interest- or category-based targeting, which other Facebook ad types do.
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Integrated Marketing Communications Plan Facebook Mock-Up
YoutubeMock-Up
Pharell Williams for Kiehl’s One
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Integrated Marketing Communications Plan Instagram Like Facebook, Kiehl’s Instagram account will promote their products, promotions, behind the scenes footage, consumer and employee testimonials, and events. Brand ambassadors will be able to “take over” Kiehl’s Instagram account, posting photo and video content of the product extension, relevant activities and interact with users.
Kiehl’s also uses Instagram’s advertisement formats which will be applied to this campaign.
Their sponsored ads are similar to any user post but are marked as promoted. These ads target key customers depending on their usage and users they follow. Instagram now offers ‘carousel ads’, which bring an additional layer of depth to photo ads. People can swipe to see additional images and a call to action button takes them to a website to learn more.
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Integrated Marketing Communications Plan Snapchat Kiehl’s recently created their Snapchat account in May 2016. Snapchats core users range from 18- 34 make up 37% of the monthky users while those 25 to 34 make up 23%. By promoting the brand and their product extension, Kiehl’s snapchat will be used to share content of the product assortment, U.S. store launches, philanthropy events, how-to videos, among other content that can attract the consumer. Kiehl’s ambassadors will also to have the opportunity to use their personal snapchat to promote the products and the brand. Snapchat has a messaging feature, which can also be beneficial to answer any questions Kiehl’s Snapchat followers might have regarding the products and the brand. Recently, actress Kate Hudson documented her entire masking experience with the new Kiehl’s Turmeric & Cranberry Seed Energizing Radiance Masque.
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Integrated Marketing Communications Plan Television Television ads and product placements will be a strategic way of presenting the campaign while maximizing exposing it to consumers and attracting interest. A MarketShare analysis found that TV advertising effectiveness has remained steady during that time period and outperforms digital and offline channels at driving key performance metrics like sales and new accounts. Product placement stands out as a marketing strategy because it is the most direct attempt to derive commercial benefit from “the context and environment within which the product is displayed or used� (Marketshare, 2014). The technique can be beneficial for viewers, since interruptive advertising removes them from the entertainment. 30 second ads will be placed on local cable and on key shows for product placement. Comcast compiled detailed information about how viewers nationally, and in its biggest markets, consumed programming via Xfinity between April 1, 2015, and the end of last month (view appendix 3). While the company doesn’t reveal specific numbers for shows, it does rank them in order of popularity. Among these, The Big Bang Theory, Empire, The Walking Dead and Modern Family, The Tonight show with Jimmy Fallon will be used to place the product extension.
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Integrated Marketing Communications Plan Sponsorship Information proved that men are influenced by sport events and themes. With the Rio 2016 Olympic Games taking place this August, employing Kiehl’s as a supporter will broaden their competitive advantage by heightening their visibility, establishing their credibility and brand to their target market. Because Kiehl’s influences their communities but also want to limit their exposure, they can participate as a supporter instead of a sponsor. Supporters are individuals, corporations, or organizations that provides a gift, financial or otherwise, of support to the conference but is not financially or legally liable for the conference. Unlike sponsors, supporters have no responsibility for the technical, financial, publicity or administrative aspects of an event.
Kiehl’s will serve as a supporter of the U.S. teams, which will complement the other marketing
strategies, in addition to having a dramatic influence on customer relations. Sponsorship in the Olympic games will allow Kiehl’s to have an international reach of their target market and other potential customers without any waste. A participant of the games will be one of the brand ambassadors to maintain a consistent branding within all the initiatives. Kiehl’s will also donate the product extension to the teams to better support the idea of the benefits on men using make-up. Athletes train at all hours and are also in the media much of the time. These products will help them.
Official Supporter of Rio 2016 Olympic Games 143
Integrated Marketing Communications Plan Hulu Streaming Service Audiences are gravitating toward online video and DVR because these formats give them control, and because they allow the viewer to focus purely on the content. As viewers’ video content consumption habits shift across on-demand TV and DVRs, brands are increasingly creating awareness within these emerging content formats.  Hulu is an American online company and partially ad-supported streaming service offering a selection of TV shows, clips, movies, and other streaming media on Hulu.com. Hulu subscribers can access episodes in HD from ABC, the CW, Fox, and NBC the day after they air, via Internet- connected devices without the need to purchase them permanently. Hulu attracts 31.9 million unique visitors, also attracting advertisers to use this platform to build brand name awareness. Thirty second video ads on Hulu generate a 61% increase in top-of-mind awareness and a 22% increase in purchase intent versus “linear TV” ads (Hulu, 2015). They study the viewers watching habits to better target the appropriate ads. Hulu offers multiple ad solutions for brands to be able to align their ads with premium video content and connect with highly engaged viewers. Kiehl’s will utilize this platform to interact with customers who watch the same shows where the brand will be placing the product to help increase brand favorability and message recall. The ad solutions include: -Local ads: A local ad buy on Hulu gives brands an effective way to reach your audience in conjunction with their traditional TV ads. Hulu lets you associate your brand with premium content while reaching your true trading area – with the ability to convert impressions into TV ratings. -Ad Selector: The Ad Selector allows the user to control their entire ad experience during video playback by choosing the ad they want to see. The user will be presented with 2 or 3 category video options provided by Kiehl’s. Once a selection has been made, the user will be presented with the video or category of their choice. -Branded Entertainment Selector: The Branded Entertainment Selector (BES) allows users to control their ad experience during video playback by choosing whether to watch a long-form commercial, or to view the show with standard commercial breaks. This unit offers a great experience for men to interact with Kiehl’s campaign and provide a more focused interaction. 144
Integrated Marketing Communications Plan
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Integrated Marketing Communications Plan Twitter As with their other social media accounts, Kiehl’s Twitter account will be used as a promotional tool. The company has and regular interaction with their Twitter followers, retweeting or liking tweets if the company hashtag ‘#Kiehl’s’ is used. It’s quick reads and limited characters enable Kiehl’s to directly interact with its male consumers. Additionally, people look to Twitter because of the Celebrity users. Additional reach will be made through Kiehl’s brand endorsers Twitter interaction with fans and the brand.
Advertising a Twitter can be achieved through promoted tweets, trends, and promoted accounts
that show up on user’s newsfeeds. -Promoted Tweets: Promoted Tweets act just like regular Tweets and can be retweeted, replied to, and liked, and more. Tweets purchased by advertisers who want to reach a wider group of users or to spark engagement from their existing followers. -Promoted Accounts: Suggest accounts that people don’t currently follow and may find interesting. Because Promoted Accounts boost your follower growth, they are best used when you would like to be more discoverable to people who are likely to love your business. -Promoted Trends: With Promoted Trends, users see time, context, and event-sensitive trends purchased and promoted by advertisers. These paid Promoted Trends appear at the top of the Trending Topics list on Twitter and are clearly marked as “Promoted.” They will also occasionally show within users’ timelines. Users are able to click on a Promoted Trend to view all Tweets containing the trending #hashtag or trend terms. They are also able to Tweet about the Promoted Trend by including the terms in their Tweets. The only real difference is that a Promoted Trend is purchased by an advertiser and clearly marked as being promoted.
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Integrated Marketing Communications Plan
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Integrated Marketing Communications Plan Print Kiehl’s will advertise in men’s magazines and their digital versions such as Men’s Health, Esquire and GQ. These are among the top 10 men’s magazines. The intension is to reach men who are specifically interested in men’s wellness and fashion and consume these magazines to maintain themselves informed. They’ll advertise once a month in the U.S. and one of Kiehl’s famous samples will be in there for trial (view appendix 4-5).
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Integrated Marketing Communications Plan Event A launch party’s at Kiehl’s flagship stores will be coordinated to present the product extension to the public. This serves as an ad opportunity for Kiehl’s that integrates and engages employees, users, customers, press, and even investors. A well-executed event, like an ad campaign, builds legitimacy with the company’s audiences. Guests will be able to have a first look at the product and create a buzz to attract customers. They will be able to try on the products, utilize the virtual mirrors and ultimately consume. The event will be promoted and shared through Kiehl’s social media.
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Campaign Evaluation !
!
!
Evaluation Media
Task
In-store
Promotions Customer Service
Digital
Virtual Mirrors Kiehl’s App Hulu Streaming Service Kiehl’s Website
150
Objective •! Generate buzz •! Engage consumers through interactions •! Educate consumers •! Promote product extension •! Evaluate purchase intents •! Generate purchases •! Measure customer awareness •! Create an interactive shopping experience •! Generate purchases through trials
Budget
Measuring Effectiveness •! Evaluate(annual(sales( relative(to(initial( investment(in(the( product(line( •! Customer(traffic( •! Promotional(codes( and(loyalty(programs( •! Retail(conversion(rate( •! Average(daily(sales( •! Units(per(transaction( •! Referrals( •! Sign<ups( •! Conduct(surveys(of( store(representative( across(all(of(their( retail(locations( •! Conduct(surveys(to( customers( •! Scanned products •! Reviews and Ratings •! Subscriptions and downloads •! Click per view •! Retention rates •! Online ad interactions and engagements
Campaign Evaluation !
!
!
Evaluation Media
Task
Social Media
Facebook Instagram Snapchat Twitter YouTube
Public Relations
Philanthropy Sponsorship Brand Ambassadors Launch event
Traditional
Magazines & digital versions
Objective
Budget
Measuring Effectiveness
•! Connect with consumers •! Provoke conversations •! Promote product extension •! Promote brand •! Generate purchases •! Measure and increase customer awareness
•! Number(of(likes( •! Number(of( subscribers( •! Number(of(posts( •! Number(of(views( •! Customer(reviews( •! Customer( interactions( •! Referrals( •! Registrations(
•! Reassure credibility •! Increase brand loyalty •! Educate consumers •! Influence purchase decisions
•! Press clippings •! Media impressions •! Increased interactions on social media and websites •! Referrals •! Increase in sales •! Placements •! Market Surveys •! Rates and reviews •! Event Attendance
•! Promote product’ •! Place Kiehl’s as a household name •! Increase reach •! Generate purchases
•! •! •! •!
Brand retention Purchased media Surveys Conduct(Memory(or( Recall(&(
Recollection(tests( with(magazine( dummies(
151
!
Budget
!
!
Budget Budget (1 year) Digital Virtual Mirrors
$90,000
Kiehl’s App
$150,000
Kiehl’s Website
$100,000
Hulu Streaming Service
$2M
Television
$2.3M Social Media
$108,000
$120,000
Snapchat
$750,000
$1.5M
YouTube
$74,000 Public Relations
Philanthropy
$100,000
Sponsorship
$200,000
Brand Ambassadors
$525,000
Launch Event
$50,000 Magazines
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4! !
Esquire
1M
GQ
1.1M
Men’s Health
1.5M
TOTAL
$160, 167, 000
Conclusion The development of the IMC plan for Kiehl’s has provided the company with an advantage to continually grow in the men’s grooming and personal skin care market. When developing and extending products for Kiehl’s male consumers, definite attention to their needs, attitudes and emerging trends was essential to understand the appropriate marketing strategies to be effected. Though at a stage of introduction, key findings revealed that essential elements such as discreet packaging, multifunctional targeted products, easy applications and male centered environments are crucial in order for men to consume color cosmetics. The combination of Kiehl’s alternative marketing strategies, other suitable tactics, and effective products were conceptualized to demonstrate how to seamlessly incorporate color cosmetics into their grooming routine without threatening their masculinity. The plan aims to further engage male consumers, bringing to attention Kiehl’s brand and their distinct product offerings. It will also further benefit Kiehl’s continual expansion of their men’s sector internationally.
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Appendix 1.! History [GOES IN BOOK] 1851: John Kiehl establishes a Manhattan apothecary. 1921: Irving Morse buys Kiehl's, making it a full-service pharmacy. 1961: Aaron Morse takes over family business, changing focus to skin and hair care products. 1980: Irving Morse dies. 1988: Aaron Morse's daughter, Jami Morse, takes over Kiehl's. 1996: Aaron Morse dies. 2000: L'OrĂŠal acquires Kiehl's. 2001: Jami Morse steps down as president Appendix 1
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