Fashion Marketing- Final Major Project Research by Molly Winter

MOLLY WINTER 201015232 DESN3770 FASHION MARKETING RESEARCH PROJECT

bettering environment and mind bettering environment and mind

B.E.A.M

bettering environment and mind

Figure 1: Kissing Bunnies Blush

B.E.A.M bettering environment and mind

Contents PHASE 1: Goal Setting

5 6 7 8

executive summary introduction to concept mission statement objectives

PHASE 2: Situation Review

11-13 macro environment analysis 15-17 micro environment analysis 18-25 competitor research 26-29 market overview 30 primary research

PHASE 3: Strategy Formation

32-34 customer segment 36 marketing strategy 37-39 product 40-44 promotion 45-46 place 48 price 49 risk assessment and contignency plan

PHASE 4: Resource Allocation and Monitoring

51 financial considerations 52-53 implementation plan 55 vision Statement

PHASE 5: Appendix and References

57-68 appendix 69-71 references 71-74 image references

B.E.A.M bettering environment and mind

Phase One

B.E.A.M bettering environment and mind

Figure 2: Lidstar Duo

Executive Summary The following project aims to solve two key problems in the macro environment. The first being environmental: the problem of singleuse plastic waste and the rising awareness of the climate change crisis. The second issue is social: consumers are increasingly time-poor and there has been a rise in stress-related mental health issues. The solution was to launch a bespoke, refillable cosmetic range to the luxury market. The product reduces stress and time wasted on purchasing decisions and tackles the issue of waste in the environment too. A competitor analysis demonstrated that there was a market opportunity in the luxury sector, then consumer research clarified the need for the product further. The final stage of the report details the total marketing strategy that will bring the business concept into fruition.

Figure 3: Grid

B.E.A.M bettering environment and mind

Introduction to concept B.E.A.M is a waste-free makeup alternative for the luxury sector. The product range is limited to six refillable products to allow customers to buy less but buy better. The aim is to reduce purchasing stress by tailoring the formulas to the individualâ&#x20AC;&#x2122;s needs and creating a highly interactive instore experience. B.E.A.M takes pride in upholding good ethical and sustainable practises across everything it does from the production methods, to distribution strategy and promotional plan. Putting transparency at the forefront means customers will become more empowered in their purchasing decisions, thus resulting in guilt-free sales. B.E.A.M encompasses high quality, self-care and the kindness to the planet, which fills a gap in the cosmetic market.

Figure 4: Cosmetics

B.E.A.M bettering environment and mind

Figure 5: Globe Png Black And White

Mission Statement

B.E.A.M aims to deliver high-end environmentallyfriendly cosmetics that are fully customised to optimise the customer's shopping experience and allow them to live a waste-free lifestyle.

B.E.A.M bettering environment and mind

Objectives 1. Become a profitable business in the luxury sustainable UK beauty sector in the first year by reaching target sales figures and establishing an achievable profit margin. 2. Achieve a strong competitive advantage in the first three years by gaining a larger market share than the identified competitors. 3. Build a strong reputation for brand transparency and sustainable practises by creating an in-depth set of sustainability guidelines and communicating these effectively to the customer.

USP A bespoke cosmetic range that combines high-quality ingredients with sustainability. The concept is also highly experiential as customers are encouraged to connect with the brand via a mix of unique store interactions.

Values • Give customers back time to spend on things that stimulate their minds by reducing the time and effort that goes into purchasing and applying cosmetics. • Guide customers through purchases to help them make informed choices so that their makeup collection meets their specific needs. • Reduce buyers’ guilt by creating a conscious product range that is kinder to the environment and kinder to one’s self. • Enforce transparency by sharing our working practises and the elements that make up our products, to build a more authentic relationship with our customers.

B.E.A.M bettering environment and mind

Figure 6: Lip Gloss

B.E.A.M bettering environment and mind

Phase Two

B.E.A.M bettering environment and mind

The Macro Environment

Political Aims have been made by pressure groups to encourage governments to reduce excess waste. For example, the government funded group, Zero Waste Scotland, said that “that consumers should refuse all needless singleuse items” (Allardyce, 2019). This interest in reducing waste has gained more traction following shows such as Blue Planet which shone a light on the catastrophic impact plastic had on the marine environment.

Environmental The Extinction Rebellion campaign gained media attention in 2019 and helped highlight the critical need for a global sustainability shift. The aim of the group is to get governments to become more transparent in regards to the “climate and ecological emergency” (The Guardian, 2019). This shows that the general population are becoming more enlightened regarding the needs of the environment. This interest in sustainability is also filtering across to large conglomerates. Unilever aimed to half “its use of virgin plastic, by reducing its absolute use of plastic packaging by more than 100,000 tonnes and accelerating its use of recycled plastic” (Unilever, 2019). This step towards a circular economy is a move that many businesses will be looking to make in order to reduce their environmental impact.

Figure 7: Waste Cosmetics Figure 8: Extinction Rebellion Figure 9: Waste Free

B.E.A.M bettering environment and mind

Social There has been an increase in levels of spirituality recently among millennials, Gen Xers and Gen Z. Rather than becoming involved in traditional forms of religion they are now “embracing more spiritual beliefs and practices like tarot, astrology, meditation, energy healing and crystals” (Roy, 2019). This shows that society is looking to find new ways to bring them peace in their increasingly more hectic lives. Also, research shows that “a total of 12.8 million working days were lost because of work-related stress, anxiety and depression in 2018-19” (Palmer, 2019). This shows that it is becoming more difficult for people to find a healthy work-life balance and that increased pressure at work is having a very detrimental effect on people’s mental health. This will impact businesses as consumers will desire products enhance their mental wellbeing. They will also require products that are easily accessible as they have less time to spend searching for the right products.

Technological 3D printing technology is a hot topic at the moment, particularly in manufacturing. For instance, it can help companies to “become more responsive to customer demands” (Oliver, 2019) through the ability to personalise products to customer needs; enable localisation of production, thus shortening supply chains, reducing labour costs and limiting carbon emissions; and allow for batch production to minimise waste. Augmented reality is equally as topical. The immersive technology has several applications from a brand perspective including Experiential Marketing, which is becoming very important as businesses are discovering that “superior brand experience is the key to creating longterm relationships” (Fade, 2019). AR is also driving sales through “interfaces that allow customers to try products prior to purchasing”. The technology has manufacturing benefits as AR can be used “to design, build and test products”, thus saving costs and streamlining the design process.

Figure 10: Astrology Wheel Figure 11: Rose Quartz Figure 12: Smart Mirror

B.E.A.M bettering environment and mind

The interlinking trends that emerged across elements of the PESTEL analysis can be defined as sustainability, in relation to minimisation of waste, reduction of singleuse plastics and increased environmental transparency; wellness and self-care, in terms of mental health awareness and the increase in spirituality; and new consumer expectations, based on wanting increased personalisation, efficiency and engaging experiences.

B.E.A.M bettering environment and mind

Figure 13: Abstract Face

B.E.A.M bettering environment and mind

The Micro Environment

Sustainability Ingredients Sustainability is a huge topic within the beauty industry as the sector gains more bad press for its environmental impact. For example, McGregor and Smith (2019) noted that the level of volatile organic compounds “in our environment that come from household items including cosmetics has increased to 50%”. This has meant that more effort has gone into managing the sourcing and impact of ingredients in cosmetic products. A cosmetic company, One Ocean Beauty, uses biotechnology to recreate “marinederived ingredients in the laboratory without the need to further harvest them”, thus minimising the pressure on natural resources. Packaging Zero Waste Week reported that “that the cosmetics industry creates 120bn units of packaging a year”, therefore beauty brands are finding new initiatives to rectify this problem (Walker and Houghton, 2019). Hourglass Cosmetics aimed to reduce its waste plastic production by offering a refillable lipstick which combines “the weight and feel of a luxury lipstick case with sustainability”. Supply Chain Beauty businesses are considering sustainability at every stage of the supply chain. Walker and Houghton (2019) said that the blockchain technology is being used within the sector as it helps improve the transparency of the supply chain by “eliminating unnecessary intermediaries”, which makes products cheaper for the consumer whilst helping “producers of ingredients receive fair payment”.

Figure 14: Plastic Bottles Figure 15: Refillable Lipstick

B.E.A.M bettering environment and mind

Wellness and Self-Care Health The wellness trend has made its way to the beauty industry as consumers are looking to improve their physical and mental wellbeing. A rapidly growing area is CBD (cannabidiol) skincare, which has many useful properties. For example, research showed that “CBD seemed to reduce nervousness and cognitive impairment in patients with social anxiety in a simulated public speaking task” (MacKeen, 2019). Global trends company, Stylus, also highlighted that holistic beauty is an emerging trend among healthconscious consumers (March, 2018). For example, a collection by Rituals drew inspiration from “the ancient Balinese water ceremony, which celebrates the healing properties of water”. Diversity Empowerment and diversity is also a trend seen in the branding of successful beauty brands. Beauty brands are considering their consumer base more by taking an inclusive approach to their branding and product offering. US brand Pür was given a lot of praise for its inclusive foundation range that used a questionnaire to analyse “factors such as skin colour, undertone and desired coverage” (Daswaney, 2019). Beauty brands are therefore carefully considering how accurately they are facilitating their consumers’ needs.

B.E.A.M bettering environment and mind

Figure 16: Hemp Plant Figure 17: Foundation Swatches

Consumer Expectations

Figure 18: Atolla Skin Lab

Personalisation The beauty industry is tapping into higher levels of consumer expectations by tailoring products and experiences better to their needs. Personalised skincare is an area that has grown as customers are searching for the best products for their individual needs. Atolla Skin Lab has taken steps to offer this by reading the skin’s moisture and oil levels and environmental factors, then plotting the data into a “machine learning algorithm” (Walker, 2018). This allows the brand to alter doses of certain ingredients to create a formula to perfectly fit the customer’s skin needs. Experience Augmented Reality (AR) has been very useful to the beauty industry, especially as a lot of consumers now choose e-commerce over bricks and mortar stores. Sephora launched an app called “Virtual Artist, which lets customers virtually try on thousands of shades of lipstick and eyeshadow through their smart phones” (Thomas, 2019). This allows customers to trial new shades and looks prior to purchase, thus encouraging sales of products they previously unconsidered buying. Sarah Brown (2018), from The Business of Beauty, also stated that AR helps “take the mental math out of studying a look on a model”.

B.E.A.M bettering environment and mind

Figure 19: Sephora Mirror

Competitor Analysis

B.E.A.M bettering environment and mind

Figure 20: Kjaer Weis Makeup

Refillables: Kjaer Weis Strengths • Minimalistic, stylish image • In-depth ingredient listing • No harsh ingredients • Luxury stockists with strong reputations • Natural benefits • Natural and organic certifications

Weaknesses • No brand-owned stores • Products are not displayed on a wide range of skin tones • Shades are limited • The sales promotions distracts from their luxurious brand image • Depth of product description can be overwhelming for customers Opportunities (for B.E.A.M) Threats (to B.E.A.M) • As Kjaer Weis does not have any of its • Kjaer Weis has a very cohesive modern own stores there is room for a refillable aesthetic. In order to stand out in the makeup brand to establish a presence on market B.E.A.M must develop its own the high street. distinctive image. • The product range of Kjaer Weis is • The brand showcases their products through relatively large. However, to reduce waste natural makeup looks. These can be easily further there is an opportunity to combine replicated by the customer. B.E.A.M should features to create a more refined product consider the types of looks that will best range. communicate the product benefits. • Kjaer Weis has an advice-led approach from listing benefits of each product, to tutorial videos, and refill guide. B.E.A.M must consider how to offer similar value for the customer to make for a memorable brand experience.

B.E.A.M bettering environment and mind

Refillables: Lush Strengths • Accessible price point • Clear ethical brand values • Transparency • Customer-led • Experiential offerings • Eye-catching brand imagery • Global reach • Inclusive Opportunities (for B.E.A.M) • There is a gap in the market for a waste-free makeup range that has a more inclusive range of shades. • It is clear that there is an opportunity to develop a product that uses natural ingredients but has a larger shelf-life too. • Lush’s product packaging is very sustainable but it does not have the same aesthetic appeal as unsustainable alternatives. There is an opportunity to develop refillable product packaging that combines sustainability with style to encourage customers to invest in wastefree alternatives. • Socio-political affiliations must not become too overbearing so as to deter potential customers.

Weaknesses • Limited shades of makeup • Not all makeup is waste-free • Strong political stance may alienate customers • Makeup products aren’t very aesthetically pleasing • Natural products have a limited lifespan Threats (to B.E.A.M) • The competitive pricing structure of Lush means that B.E.A.M must offer a higher quality product to offer a better value proposition. • Lush has a very strong reputation for altruism, therefore it is paramount that B.E.A.M clearly communicates the ethical values than underpin the brand’s ethos in order to remain competitive. • Research shows that Lush has a lighthearted brand narrative that gives the brand a positive image. This means that B.E.A.M must carefully consider the most appropriate tone of voice to attract the target customer.

Refillables: Elate Strengths • Tailored customer offerings • Aesthetic represents values • Ethical actions • Unique sustainable packaging techniques • Strong customer bonds • Large product range Opportunities (for B.E.A.M) • Elate miss out on opportunities to create experiences for their customers by not having stores. This is something B.E.A.M could work on to differentiate them. • Elate does not use model imagery which makes it difficult for customers to imagine how a product would look when applied. To boost online sales B.E.A.M should incorporate images of the product applied to a range of skin tones.

Weaknesses • Does not own any stores • Products are not swatched on the skin • The brand does not use any model imagery • Huge product range can be overwhelming for customers Threats (to B.E.A.M) • The seed paper packaging helps Elate reinforce their brand values while offering a unique touch to delight their customer. B.E.A.M must develop a promotional plan that delights customers to ensure a competitive edge. • Elate has a very accurate understanding of the needs of their customers, which allows them to tailor products and promotion. B.E.A.M needs to take the same approach to understanding customer demands and behaviour in order to offer a truly bespoke experience.

B.E.A.M bettering environment and mind

Figure 21: Lush Lipstick Refill Figure 22: Lush Foundation Refill

Figure 23: Lush Concealer Refill

Figure 24: Elate Mascara Figure 25: Elate Powder

B.E.A.M bettering environment and mind

Personalised: Trinny London Strengths • Easy to buy gift sets to suit a friend’s features • Inclusive set of models • The founder has an existing reputation • Informative yet humorous blog • Products useful for travelling • Some products are refillable • Use ethical ingredients • Advice-led • Large product range • Questionnaire to find out customer needs Opportunities (for B.E.A.M) • Trinny London’s sustainable offering is fragmented as the ethical values haven’t been used across all products. This means that B.E.A.M must devise a more cohesive brand strategy to create a more clear narrative. • The brand is lacking in-store experiences. In light of the current challenging climate for highstreet retailers it is paramount that brands offer engaging retail environments.

Weaknesses • The amount of choice on the website can make it difficult for customers to make a decision • Only some products are refillable • Not all products are vegan friendly • The in-store makeup class experience is fairly conventional

Threats (to B.E.A.M) • The questionnaire that Trinny London uses to filter products for their consumers is an ingenious concept. It streamlines the online customer experience and the brand can use this data to understand their customer base better. B.E.A.M should look into innovative ways to collect customer data to enrich the marketing strategy. • The sophisticated way in which the brand’s products are selected means that customers can easily purchase gifts for a friend, therefore they have increased the potential for sales. B.E.A.M must be confident that we can facilitate all such purchaser requirements too.

Figure 26: Trinny London

B.E.A.M bettering environment and mind

Figure 27: Giella Custom Blend

Personalised: Giella Strengths • Detailed bespoke options • Lifestyle blog • Variety of experiential events • Option to connect with the founder • Hand-mixed production • Conscious ingredients • Expert advice in-store • Customer’s creations kept on record Opportunities (for B.E.A.M) • Customers appreciate the customised advice from Giella’s makeup experts instore so this is something that should be incorporated into the website too. • Giella has scope to become more sustainable. To cater to the market needs brands should consider combining several trends, i.e personalisation and sustainability, to appeal to customer demands.

Weaknesses • US only stores • Difficult to receive same expertise as instore experience when purchasing online • Free samples with purchases are unsustainable as they increase the potential for unnecessary waste Threats (to B.E.A.M) • The artistry that goes into making Giella’s bespoke products gives them a competitive-edge. This means that B.E.A.M must establish a niche offering to stand apart from competitors. • The various events that Giella put on provide a great communicative touch point for the brand as they can interact closely with their customers. Therefore, B.E.A.M should consider potential in-store experiences that could help to obtain this invaluable type of customer feedback.

B.E.A.M bettering environment and mind

Brand Perceptual Maps Market opportunity:

combining

bespoke cosmetics with sustainability

Bespoke

B.E.A.M

Sustainable

Unsustainable

Generic

Figure Figure Figure Figure Figure

28: 29: 30: 31: 32:

Kjaer Weis Logo Lush Logo Elate Logo Trinny London Logo Giella Logo

B.E.A.M bettering environment and mind

Market opportunity:

offering experiential store experiences within the luxury market

Experiential

B.E.A.M

Luxury

High Street

Traditional

B.E.A.M bettering environment and mind

Market Opportunity Total Available Market The global beauty sector is a very fertile industry and a secure market to enter. However, competition will be even more intense as the growth of the market will attract new entrants. This means that B.E.A.M must establish a secure USP and strong value proposition for the customer on order to stand apart.

The total beauty industry has been valued at $532 billion (Biron, 2019)

The global cosmetics market grew by 5.5% in 2018 (Lâ&#x20AC;&#x2122;Oreal, 2018)

The beauty industry is â&#x20AC;&#x153;expected to reach a market value of $805.61 billion by 2023â&#x20AC;? (Orbis Research, 2018). 26

B.E.A.M bettering environment and mind

Product category share of the global cosmetic market 2018 (Lâ&#x20AC;&#x2122;Oreal, 2018): 10% 11% skincare hair care makeup fragrances hygiene products

19%

This chart shows that makeup holds the third largest market share, demonstrating that it is a major interest for customers in the beauty industry.

40.00%

39%

21%

Global Cosmetics by Channel (Raconteur, 2016)

35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00%

Grocery Stores

Speciality Stores

Pharmacies

Department Stores

B.E.A.M bettering environment and mind

Other 27

Total Serviceable Market Evidence shows consumers are demanding sustainable beauty alternatives, consequently the industry is responding. For example, the sustainable beauty market is “expected to reach a value of about 22 billion U.S. dollars by 2024” (Statista Research Department, 2016).

“79% believe personal care and beauty brands should put more effort into manufacturing products in an ethical and sustainable way” (Qureshi, 2019). When asked about the most important purchasing factors for beauty products “‘ethics and sustainability’ (34%) was on par with ‘natural ingredients’ (30%) and ‘sensory characteristics’(31%)” (Qureshi, 2019)

Figure 33: Woman Profile

B.E.A.M bettering environment and mind

The growing demand for conscious beauty is global for example (Mintel, 2018 a): • “74% of beauty and personal care consumers in Spain are concerned that the ingredients used in natural products are not sustainable.” • “24% of Indian consumers are motivated/would be motivated to live a more ‘natural’ lifestyle to support environmentally conscious businesses.” • “54% of Brazilians who are potential buyers of green/ethical products say they purchase sustainable/ environmentally friendly goods because they don’t like to waste.” • “44% of US natural/organic personal care consumers, who buy a mix of mainstream and natural/organic brands, say they live sustainably.” • “58% of Chinese Metropolitans agree they are willing to pay more for ethical brands.” There is particular interest in the ethics of the ingredients used in products as “76% of consumers want brands to ensure safe ingredients” (Soil Association, 2018). For example, certified organic and natural products have seen a growth of 14% year on year. The sourcing of these ingredients is also something that consumers care about as 65% are demanding more transparency around ingredient sourcing.

B.E.A.M bettering environment and mind

Primary Research Research shows that word of mouth reputation key when selling cosmetics as the most trusted source when choosing makeup product is friends or family (45%). Other results confirmed that there was a potential market opportunity: • 73% Extremely or very willing to try different makeup products • 63% extremely likely or somewhat likely to buy refillable makeup • 73% interested in a capsule makeup collection Types of ingredients that would make people more likely to buy a makeup product:

Types of ingredients that would make people

These findings showed that individual’s cosmetic product needs varied from one another. Primary research also helped define the cosmetic products that consumers are most interested in and the purchasing decision factors. Most used weekly makeup products: Eyeshadow, 18.18%

Other, 9.09%

False eyelashes, 27.27%

Face Powder, 27.27%

Mascara, 90.91%

Eyeliner, 36.36%

more likely to buy a makeup product:

Blush or bronzer , 72.73%

Eyebrow gel or powder, 45.45%

Other Dye-free Alcohol-free

Lipstick, gloss, or tint , 72.73%

Foundation, 54.55%

Petroleum-free Oil-free

Concealer, 54.55%

Noncomedogenic Natural 0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

The problems encountered with current makeup products: • Constant rash • Dry mascara • Finding dewy foundation • Quality uncertain until post-purchase • Misleading packaging • Inconvenient stockists • Not long-lasting • Product breakage • Limited colour range

Most important factors when choosing makeup products • Quality (64%) • Brand (36%) • Salesperson’s recommendation (27%)

B.E.A.M bettering environment and mind

Phase Three

B.E.A.M bettering environment and mind

Target Market: Miss Clutter-free Congeniality

Figure 34: UK map

Geographic: B.E.A.M will be located within the UK due to the demand for the two main aspects of B.E.A.M’s products (sustainable and personalised cosmetics). For example, the “sales of certified organic and natural beauty products in the UK” have been valued at £86.5m (Soil Association, 2018). As a consequence, “57% of shoppers would buy – or boycott – a brand depending on its ethical values” (Walker and Houghton, 2019). In addition, consumers in the UK are equally as interested in personalised beauty services as research shows that “46% of UK consumers are interested in tailored products” (Mintel. 2018 b). Figure 35: London Skyline

Demographic: The brand is aimed at female customers however, it is difficult to pinpoint a particular generation that will be interested in the brand. Instead the luxury cosmetic consumer crosses several generations as “prestige cosmetics are especially popular among 25-54 year-olds” (Social Standards, 2019). Research also shows that “prestige cosmetics don’t show a strong skew toward any income level” and this may be because luxury cosmetics are perceived to be splurges, “making them highly desirable but limited additions to their makeup bags”. Figure 36: Lash Slick

B.E.A.M bettering environment and mind

Psychographic: The two main characteristics of this consumer is their desire to live a decluttered lifestyle and being passionate about caring for themselves and the world. They are concerned with environmental issues and aim to reduce the amount of waste in their day-to-day life in order to save the planet by: • purchasing timeless, high-end products • growing their own food • cutting down on single-use plastics • recycling/repurposing items at end-of-life • subscribing to a surplus food service • favouring brands with transparent supply chains • travelling via public transport • living a vegan lifestyle This applies to their consumption of beauty products too as in 2019 “28% of women in the UK reduced the number of products in their facial skincare routine” (Walker and Houghton, 2019). Other research shows that “54% of UK beauty and personal care consumers often research products online before they buy them” (Mintel, 2018 a). This is shows that the target consumers expect beauty brands to be fully transparent in order to build up enough trust to secure their loyalty. As well as reducing the amount of physical waste they generate, these consumers are also keen to de-clutter their minds too. They work to maintain a strong mental wellbeing, which involves taking selfcare seriously. This is translated into the following attitudes and behaviours: • Meditating and using crystal healing • Seeking advice from life coaches • Following a strict exercise regime • Maintaining a healthy diet • Travelling to wellness spa retreats • Indulging in luxury products • Listening to mindfulness podcasts • Attending art exhibitions • Following wellness influencers

Figure 37: V&A Figure 38: Book Figure 39: Interior Design Figure 40: Yoga Figure 41: Vegetables

B.E.A.M bettering environment and mind

Customer Profile: Figure 42: Knitwear

Name: Sarah Johns Age: 28 Salary: £65,000 Location: London Education: Degree in journalism Relationship status: Engaged Job: PR Manager for an ethical clothing brand Lifestyle: • Vegan lifestyle • Cycles to and from work • Reads The Guardian and magazines like Oh Comely • Listens to podcasts like Gurls Talk and Happy Place • Cooks using organic, fair trade ingredients • Buys clothes from charity shops and midrange ethical shops like And Other Stories and Anthropologie • Donates money to Oxfam and PETA each month • Extinction Rebellion and Women’s March activist • Owns a cat and dog • Regularly checks her horoscope • Goes on park runs and does Pilates • Uses Instagram and Facebook • Reads empowering books like Feminists Don’t Wear Pink and Life Honestly

B.E.A.M bettering environment and mind

Figure 43: Wall Prints

B.E.A.M bettering environment and mind

Marketing Strategy to achieve objectives: 1. Become a profitable business in the luxury sustainable UK beauty sector in the first year by reaching target sales revenue. • establish an achievable profit margin • base price on target market’s disposable income • personalise the promotional strategy • make online store user-friendly • monitor total costs to ensure profitability • record customer’s product formulas to enable easy refill purchases • streamline omni-channel marketing strategy to create ease for the customer

2. Achieve a strong competitive advantage in the first three years by gaining a larger market share than the identified competitors. • develop a cohesive communication strategy to increase brand recognition • equip customers with expert knowledge to help them build their ultimate cosmetic collection • deliver impeccable customer service to maintain customer-brand relationships • refine product range to create the highest quality products • use natural, cruelty-free ingredients that to do not compromise the health of the consumer • offer an experiential service to create a memorable brand experience • establish a solid highstreet presence by opening concept stores across major UK cities

3. Build a strong reputation for brand transparency and sustainable practises by creating an in-depth set of sustainability guidelines and communicating these effectively to the customer. • find charities to sponsor that correspond with brand values • invest in research and development to ensure the brand is always innovating • ensure sustainability guidelines are in line with relevant ethical and sustainable certifications • offer comprehensive ingredient lists on product packaging • use Blockchain technology to monitor the supply chain • articulate B.E.A.M’s sustainable values to the customer across all communication channels

B.E.A.M bettering environment and mind

The Total Product The Actual Product The Generic Product

Bespoke, refillable luxury cosmetic products • Caring, personal feel • Timeless appeal • Transparent, inclusive branding • Made in the UK • Guilt-free consumption • Expert-led service (primary research showed salesperson’s recommendation an important factor when choosing makeup) • Informative communication Expand the range to become a holistic waste-free beauty brand including skincare, haircare and fragrance products.

The Total Product Concept

The Potential Product

• Ingredients tailored to customer’s skin needs (oil-free, alcohol-free, noncomedogenic, anti-wrinkle) • Natural ingredients (primary research showed that 64% of people would be more likely to buy a makeup product containing natural ingredients) • High quality (primary research showed that quality was the most important factor when choosing makeup) • Customisable, refillable, 3D-printed compacts • Eco-friendly, waste-free packaging • Compact repairs are free-of-charge • No single-use plastics • Charitable donations (to Mind and WasteAid) • Sustainability certifications (Blue Angel, CarbonNeutral) • Ethical practises (FairTrade and CSRR Quality Standards) • Cruelty-free (PETA certified) • Vegan friendly

B.E.A.M bettering environment and mind

Product Range Figure 44: Cosmetics

Figure 45: Paint Stroke Figure 46: Powder

According to primary research the following products are the most used weekly makeup items: 1. Mascara (91%) 2. Blush, rouge, or bronzer (73%) 3. Lipstick, gloss, or tint (73%) 4. Concealer (55%) 5. Foundation (55%) The range will also feature an eyeshadow palette and eyeliner too as they allow customers to create more glamourous makeup looks for more formal occasions. Making them important products for a capsule makeup collection.

Figure 47: Open Compact

.A B.E ing

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env

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en onm

min

How it works...

Figure 48: Closed Compact Figure 49: Art Print

Customers will be encouraged to first attend a consultation in-store to receive colour matching and develop their customblend which complements their skin needs. They will then be given a unique barcode that stores the details of this unique formula.

They will then design their own product packaging using the brandâ&#x20AC;&#x2122;s pattern creator software. Packaging will be 3D-printed using a combination of recycled metal and plastic.

The product refill will then be inserted into the packaging. Once the product has been used up, the customer will have the chance to either repurchase the product refills in-store or online via their barcode. Online refills will arrive in water-soluble pods to maintain the waste-free element.

B.E.A.M bettering environment and mind

Sustainability Strategy Ethical

Sustainable

• All employees receive a fair wage

• Waste-free, refillable compacts made from infinitely-recyclable aluminium and • PETA cruelty-free certification: This means recyclable plastic that B.E.A.M “do not conduct or commission any animal tests on ingredients, • Packaging is minimal and made from formulations, or finished products” (PETA, compostable materials 2019) • Head office limits environmental footprint • Products are 100% vegan by using energy saving devices, monitoring water usage and providing reusable water • Deploy rigorous quality management systems bottles e.t.c • Soft HR management to make staff feel valued

• Blockchain technology used for supply chain transparency

• FairTrade certification: “The Standards • Distribution uses electric transport are designed to support the sustainable development of small-scale producers • Products that fail quality standard and agricultural workers in the poorest testing sold at sample sales countries in the world”. (Eco Label Index, 2019a) • Blue Angel Certification: “awarded to products and services which are particularly beneficial for the environment in an all-round consideration” (Eco Label Index, 2019 b) • Carbon Neutral: “a global standard to certify that businesses have measured and reduced their CO2 emissions to net zero for their company, products, operations or services” (Eco Label Index, 2019 c)

B.E.A.M bettering environment and mind

Promotional Mix B.E.A.M’s promotional mix aims to increase the profitability of the brand by following the AIDA model. By making effective promotional decisions, that raise awareness of the brand; create interest about products; and enhance their desire to own the product; customers are more willing to act on this resulting in a purchase (LeaGreenwood, 2013) As noted by Fill (2006) each element of the promotional mix is effective at tapping into a different element of the purchasing decision sequence. Therefore, it is important to develop a comprehensive promotional strategy in order to achieve the best results.

1. Awareness

Advetising: Print Advertising

B.E.A.M will pay for advertisements in a variety of Indie magazines to build awareness of the brand. For example, Oh Comely is a magazine that encapsulates mindfulness and “brings together ideas for mental wellbeing” (Oh Comely, 2019). The magazine’s values are in-keeping with the needs of B.E.A.M’s target audience, so by advertising here the product will be exposed to customers that have the most potential to be interested in the range. The editorial advertisement will take the form of full page adverts and product placement through product reviews.

Advetising: Podcasts Figure 50: Oh Comely

Figure 51: Happy Place

Another advertising technique to build brand awareness will be sponsorship of podcasts. This is an appropriate channel as the intimate medium offers “a built-in, loyal audience” who are more likely to engage with “a host’s product recommendations” (Prinzivalli, 2018). The honesty of a podcast ties in with B.E.A.M’s core values of authenticity and by sponsoring popular wellness podcasts like Happy Place and She’s Electric, the brand can easily engage with individuals in that make up its target audience.

Public Relations The PR strategy will consist of influencer gifting. Rather than pay for sponsored posts, B.E.A.M will send items to relevant wellness influencers such as @stevieyaaaay (a climate activist who promotes self-love) in order to generate more credible brand awareness. By not paying influencers to post about the products, the coverage will be based of their real reactions, thus making the content more trustworthy. This will be better-received by the target audience as they appreciate brand transparency.

Figure 52: Influencer

B.E.A.M bettering environment and mind

b.e.a.m

Figure 53: Glossier Instagram

2. Interest Digital: Social media B.E.A.M will predominantly use Instagram to promote the brand as this is the most effective social media channel for developing product interest among the target audience. The Instagram feed will maintain a cohesive aesthetic and have a friendly yet informative tone of voice. This links to B.E.A.M’s objective to remain authentic and customer-focused. The account will be private so that customers feel closer to the brand, thus building up a greater sense of community and tighter customerbrand relationship. This also helps to give an impression of exclusivity, which is a key factor in building up a luxury image. B.E.A.M will aim to livestream multiple times a week to deliver personalised advice to customers through Q&As, and will use the “close friends” feature to tailor the Instagram stories to different consumer segments. These two techniques offer a personalised experience for the customer that links to the brand’s bespoke products and boosts the authenticity of the customer relationship.

B.E.A.M bettering environment and mind

3. Desire Personal Selling The sales staff in store will be trained makeup experts who will be able to give customers the best advice tailored to their individual needs. Also primary research showed that salesperson’s recommendations was an important factor when choosing makeup products. The better the customer service is, the more likely the customer is to invest in the brand and desire the product. This hands on consultation-style service will also carry through to the online store where customers will have an opportunity to discuss their makeup needs with experts through a live video. This also helps reduce waste as customers will experience less hassle figuring out which products to purchase. The products will also be more suitable for them so they will not waste money on the wrong items.

Experiential: Emotional The last experiential promotional technique will help build an emotional connection with the customer. This will involve training the sales staff to offer astrology readings for clients. This authentic live brand experience caters to the target audience’s desire to declutter their lives by identifying areas where customers may be wasting mental energy. By offering a holistic advice service B.E.A.M can achieve its core objectives of reducing waste as well as adding value to the customer relationships. By building a good relationship with the target audience, wordof-mouth recommendations will spread giving this experience an exponential element. As identified in my primary research this is very valuable to a cosmetic brand as 45% of respondents said that friends or family were the most trusted sources when choosing makeup products.

Experiential: Personalisation A number of experiential marketing techniques will be implemented to offer a memorable brand experience for the customer that will build desire for the product. To enhance the bespoke offering customers will be able to design the pattern on the product compacts. This will be available online and in-store via the brand’s unique software. This touchpoint helps the brand stand out from competitors as it is very customerdriven. Experiential: Innovative Technology Augmented Reality will also be used instore via smart mirrors where customers can try makeup before they buy it. This novel technology plays on one of customer’s five senses, sight, by allowing them to visualise the products on their skin. It also helps reduce waste again by minimising the risk of a customer purchasing a product that will not complement them, which in turn reinforces the brand’s waste-free values. Figure 54:Virgo Figure 55: Smart Mirror Figure 56: Lip Gloss Figure 57: Pattern

B.E.A.M bettering environment and mind

Figure 58:Glossier Sales Staff Figure 59: :Leo Figure 60: Cancer

B.E.A.M bettering environment and mind

4. Action Sales Promotion In terms of sales promotions B.E.A.M will offer a price discount on large orders. By giving customers 10% off orders over ÂŁ70 it will increase the likelihood of customers making larger purchases, thus linking to the action point of the AIDA model. All of the identified competitors also offered a price discount on large orders so B.E.A.M must do the same so as to remain competitive. Another sales promotion will be a percentage charity donation on products. The chosen charities will be Mind (a mental-health charity) and WasteAid (a waste management charity). These two charities fit in with the brandâ&#x20AC;&#x2122;s values of wellness and sustainability and are likely to resonate with the target audience. This helps reduce purchasing guilt too, which will also boost customer sales. Direct Marketing Customers will also be encouraged to act on their purchasing impulses through direct marketing techniques. Email communications will be personalised by tracking customer data and delivering the most relevant content for each individual. This will include information relating to new product launches, seasonal content, interesting news stories and exclusive discounts. This refines the user experience, which makes for greater convenience and a reduction in waste energy. Therefore, this stays true to B.E.A.Mâ&#x20AC;&#x2122;s main aim of becoming a waste-free brand.

Figure 61:Mind Figure 62:Waistaid

B.E.A.M bettering environment and mind

Place Vertical Marketing System Manufacturer

Distribution: B.E.A.M will use a vertically integrated marketing system to allow full control of the manufacturing process (Kotler, et al, 2013). This streamlines the route to market so that it is as sustainable and efficient as possible. This helps B.E.A.M achieve its waste-free promise. The manufacturing will also take place in the UK to reduce carbon emissions. A direct and 1 level channel will be used too so that B.E.A.M can control the distribution process to further minimise waste time and energy.

Wholesaler

Retailer

Consumer Figure 63: Vertical Integration (Kotler, et al, 2013) Product Manufacturers

1-level channel Retailer Direct channel

Consumer Segment 1

Consumer Segment 2

Figure 64: Distribution Channels (Hur, 2019)

The implementation of Blockchain technology will also allow the brand to monitor all elements of the supply chain to make sure that the sustainable and ethical guidelines are being. It will also allow better transparency of the distribution network, which will help develop trust with the consumer thus strengthening B.E.A.Mâ&#x20AC;&#x2122;s reputation. An exclusive distribution strategy will allow only a handful of stores to exist across four major UK cities (London, Manchester, Birmingham and Leeds). This will mean that the brand will be able to afford rent in the most luxurious shopping sites. Being situated alongside other luxury brands will help position B.E.A.M in the high-end market as well as providing greater convenience for the luxury shopper.

B.E.A.M bettering environment and mind

Channels: An omni-channel retail strategy will be put into place as this allows greater convenience for the modern consumer. By providing a variety of locations where the consumer can access B.E.A.M’s products it allows greater flexibility for the customer, which in turn will increase the potential opportunities for sales.

Stores The physical stores will be limited in numbers to maintain an air of exclusivity. The stores will have a fresh, Scandinavianstyle aesthetic that ties in with the brand’s minimalist yet luxurious image. They will also have plush furnishings to provide maximum comfort for the consumer while they shop. Innovative technology such as 3D printing machines and smart mirrors will further enrich the in-store shopping experience. A customer-driven strategy will be put into place by offering reserve-andcollect and click-and-collect services. This helps to drive footfall into store so that the brand can captivate the target audience as well as improving customer satisfaction by offering them delivery flexibility. E-commerce

Figure 65: Makeup Shop

Figure 66: Website

B.E.A.M’S website will have a simple design so that the customer can navigate the site with ease. The aesthetic will be clean and fresh, with inclusive imagery of models with stripped-back makeup looks. This will communicate the waste-free aspect of the brand, while making it clear that the products can be moulded to each individual. The website will also feature the brand’s mission statement and history to add context for the consumer. A comprehensive list of the ingredients and customer reviews for each product will be listed as well as a section on how to use the refill system. Therefore, customers will feel well-informed and in control of their purchasing decision. Customer service will be an important aspect of the website through the livestream feature whereby customers can have real time consultations with makeup experts. This personal touch will help B.E.A.M stand apart from competitors. Blog

Figure 67: Blog

The website will also have a blog section that will cover a range of topics including beauty, fashion and lifestyle. It will centre upon sustainability and wellness themes as these are the key interests of the target audience. The brand blog will have shoppable features that will act as a more discreet sales channel. By releasing new articles regularly B.E.A.M will be able to engage with the consumer in a more light-hearted manner and the informative style will help to enrich the customer’s interaction with the brand.

B.E.A.M bettering environment and mind

Figure 68: Glossier Store

B.E.A.M bettering environment and mind

Price

The pricing method used will be a combination of cost-based pricing and customer-value-based. This is because the elements that will make up B.E.A.M’s production and marketing costs will be rather high due to the commitment to sustainability and the innovative technologies used. Therefore, a substantial profit margin must be calculated based on all variable and fixed costs and take into account the perceived value of the final product in order to ensure profitability. The price will also be selected based on the financial capabilities of the target audience and the amount they’re willing to spend on luxury cosmetics. In this way B.E.A.M can guarantee that they will be able to maintain a captive audience.

Price Architecture:

• Full capsule bundle (x4 eyeshadows, lipstick, concealer, bronzer/blusher, foundation) £216= 20% discount

High Price • Concealer refill £22, Concealer casing £30 (combined price: £52) • Blusher/ bronzer refill £25, Bronzer/ blusher compact £30 (combined price: £55) • Eye shadow palette £30 • Foundation refill £30, Foundation bottle £35 (combined price: £65)

Mid Price

• Eyeshadow refill per shade: £10 • Lipstick refill £13, Lipstick casing £15 (combined price: £28)

Lowest Price 48

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Risk: The viability of the product relies on customers entering stores. This is because the sales staff facilitate the formula consultations that make the products fully bespoke. Without this initial meeting customers will not be able to tailor the products as successfully. Dealing with the Risk: The store environment must be very inviting and offer incentives for customers to enter. This could come in the form of offering a percentage sales discount on the first product refill in-store; offering more experiential elements such as a waste-free café; and creating an innovative visual merchandising strategy through collaborating with interesting artists and furniture designers.

Risk: There may be a failure with the products’ lifespan. Due to the brand opting for natural ingredients there is a risk of the product growing bacteria. This would be costly to the business as it would mean that customers would lose trust in the brand. Dealing with the Risk: The products must go through rigorous microbial product testing at a laboratory before launching and quality control measures must be put into place to make sure all products are of the same standard. The products should also be clearly labelled with a best before date to give customers a realistic expectation of the product’s lifespan prior to purchase.

Risk Assessment and Contingency Plan Risk: As a new brand, B.E.A.M may struggle to compete with existing luxury cosmetic brands that have an extensive history and strong consumer trust. It may be difficult to encourage customers to change their spending habits and consider buying from B.E.A.M instead. Dealing with the Risk: As a backup plan, B.E.A.M could consider a brand partnership with an existing British luxury cosmetic brand such as Charlotte Tilbury. This would help the existing brand to develop a sustainable product offering and allow B.E.A.M to access their well-established customer base with greater ease.

Risk: External factors in the socio-economic environment may impact national consumer spending. This will impact consumer’s willingness to spend on luxury items and will make it difficult for B.E.A.M to reach the target sales revenue. Dealing with the Risk: B.E.A.M must implement a cohesive communication strategy to highlight the sustainable product benefits clearly to the customer. Emphasizing sustainable aspects helps customers feel less guilty about purchasing a luxury product. This will ensure that B.E.A.M maintains steady sales and profitability.

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Phase Four

B.E.A.M bettering environment and mind

Financial Considerations Table based on start-up costs of Stowaway Cosmetics (Indvik, 2019): Cost Consideration Supply Chain Costs Warehouse Fulfilment

Spending

£38,000

Overheads Office lease Operational overheads Furnishing

Marketing PR Digital Web Branding Creative assets (high-res photos,videos, brand images) Salaries In-store sales staff Head Office Staff “engineer, head of product,head of brand/ marketing,head of operations,customer service and graphic designer” (Indvik, 2019) Stock 6 products categories in a range of shades

£188,000

TOTAL= £355,000 £91,000 £150,000 £38,000 £38,000 £38,000

Research and Development IT TOTAL COSTS

£480,000

£190,000 £38,000 £1,289,000

Profit Margin Target Sales Revenue: £2,000,000 Profit Margin: 20% As the product is bespoke and in the luxury market the profit margin is higher as the services and quality boosts the level of perceived value. Target Net Profit: £711,000

B.E.A.M bettering environment and mind

Implementation Timeline 1. Develop a high-quality product range that fits the companyâ&#x20AC;&#x2122;s sustainability guidelines and meets the Blue Angel and Carbon Neutral certification criteria.

3. Create sustainable product packaging and monitor the transparency of the supply chain.

2. Outsource product testing to a trusted cosmetic testing laboratory and carry out indepth customer focus group interviews to refine the product further.

5. Develop the website and blog: draft the first blog posts; set out full product descriptions; communicate the brand story and values; test the livestream feature; and design graphics.

4. Create all brand and advertising campaign imagery and ensure they all have a cohesive aesthetic and message.

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7. Furnish physical stores, making sure visual merchandising is on-brand and enticing to customers. Test Augmented Reality technology and personalised pattern packaging creation software. Carry out staff customer service training.

6. Create social media accounts and roll out teaser campaign.

9. Send out influencer gifting, pay for print adverts, and secure podcast sponsorship.

8. Launch product in stores and online. Host launch events in stores; hold a press day with journalists and influencers; send out press release.

11. Measure success by reviewing monthly sales revenue; customer loyalty by analysing refill purchases per head; and brand perception by looking at click through ratios and customer reviews.

10. Build social media following by posting frequently, including engaging livestreams and close friends stories. Aim to secure social media account verification.

B.E.A.M bettering environment and mind

Figure 69: &Other Stories

B.E.A.M bettering environment and mind

Vision Statement- Future Considerations: Launch App: B.E.A.M will develop an app in future to extend its omni-channel offering. This will add flexibility for the userâ&#x20AC;&#x2122;s shopping experience and create another touchpoint for the brand to connect with the consumer.

Spa Treatments:

The in-store experience could be enhanced further by providing customers with an opportunity to receive spa treatments. This will create a bigger incentive for them to enter the physical stores, which will allow the brand to engage with the consumer base more and develop that relationship. It will also extend waste-free brand promise as it will be a chance for customers to clear their minds of waste mental energy by reducing stress. This also taps into the consumerâ&#x20AC;&#x2122;s passion for self-care and mindfulness.

Online Community: The brand will build an online community via a two-way advice forum where customers can discuss their makeup problems and their experiences with the brandâ&#x20AC;&#x2122;s products. This will help to create an authentic community free of bias, which will build trust with the consumer base.

Extend Product Range: The product range could potentially be expanded to included skincare, haircare and fragrance products. This would help B.E.A.M become a more holistic waste-free beauty brand to reduce the risk of over-reliance on a solely cosmetic product offering.

Department Store Concessions: The brand could look at opening concessions in a few large department stores. As the product viability is heavily reliant on instore activities it could help tackle the issue of falling footfall in department stores over the past few years (Moller, 2019). The immersive physical experience could help revitalise the department stores and allow B.E.A.M to increase its brand exposure.

B.E.A.M bettering environment and mind

Phase Five

B.E.A.M bettering environment and mind

Appendix List:

Appendix 1: Competitor Analysis Lush

1. Consumers

The Lush customer is interested in sustainability, animal rights, and ethical practises, has a sense of humour and is politically left-wing (Lush, 2019 a).

2. Place

Online The product imagery is simple and the branding has an unstaged, natural feel. They also feature video clips to show the product in use for customers to get a better feel for the product features. The web-site includes a very in-depth policy page and showcases customer reviews clearly for each product re-sulting in a very transparent marketing approach (Lush, 2019 a). App The apps purpose is to showcase the latest innovations, news and updates from the #LushCommuni-ty. It also allows insight into developments across products, communication and technology. This gives customers a sense of belonging to make them feel valued by the brand (Lush, 2019 b). Spas Lush also offers spa services in 8 locations across the UK that focus on body and mind. This gives cus-tomers an experiential offering to enrich the brand’s value propositions (Lush, 2019 a). Stores Lush has over 900 stores in 49 countries (Burn-Callander, 2015).

3. Product

All products are 100% vegan, tested on animals. The brand profit charity products. They cosmetics online and putting offering by invit-ing them to suggestions.

handmade, ethically sourced and are not also show altruistic values through nonpride themselves on offering the freshest the customer at the forefront of their product give opinions on new launches and new product

Lush also offers colourfully wrapped gift sets, seasonal items and compilation albums as part of their product range. This helps to broaden their offering to appeal to a wider set of customers and increase sales potential. The brand also responds to customer needs by re-releasing products from the past as limited edition products. In terms of their packaging-free makeup range they sell: • Highlighter • Foundation • Concealer • Lipstick • Primer

4. Price

Other sustainable products include 78 plastic free products and vegan makeup. All products are given humorous names to make them memorable to the customer and strengthen Lush’s fun brand image. (Lush, 2019 a) • Refillable lipstick: £10-£12 (£8 for case) • Plastic free foundation: £17 • Plastic free concealer: £12 • Plastic free highlighter: £12-12.50 • Liquid eyeliner: £15 • Mascara: £15.50 • Translucent powder: £15 • Primer: £10-£26 (Lush, 2019 a)

B.E.A.M bettering environment and mind

5. Promotion

The brand uses bright imagery and has a friendly, casual tone of voice to create a playful image. Real people are used to model products, which encourages inclusivity so that customers can relate to the brand. In-store parties also add to this personal feel and act as a great experience-led touch point for the brand to become even more connected to their customers. Sustainability underpins much of Lush’s promotional strategies through offering naked packaging; in-centivising waste reduction by offering a free face mask for returning 5 empty product pots; and providing waste-free and sustainable lifestyle advice via a blog. The brand has built up a socially ethical image too through writing articles on their blog to introduce the individuals involved in developing their products; hosting annual awards to give financial backing to social change groups; and creating their own charity fund to invest in projects making a positive change for children living in challenging environments. (Lush, 2019 a)

Kjaer Weis

1. Consumers

The target customers for the brand are professional women, earning a good income. They are also fashion-focused and have an interest in wellness and sustainability. (Kjaer Weis, 2019)

2. Place

Online Kjaer Weis use very simple, clean product imagery to give a sleek magazinelike feel. The models’ makeup looks are fresh and natural to show the ways that the makeup enhances the consumer’s nat-ural beauty. In the product description the brand has listed all the product benefits and all ingredients are listed in detail, this transparency is appealing to the target market as it gives an impression of au-thenticity. Each product also has a tutorial video attached to demonstrate how to apply each product. This service helps the brand appear modern and informative. The products are also sold on other international online websites such as net-a-porter. (Kjaer Weis, 2019)

3. Product

4. Price

Stores Kjaer Weis does not have any of its own stores but it appears in the stores of 131 US, UK and European stockists instead. (Kjaer Weis, 2019) Kjaer Weis’ (2019) products combine sustainable and luxury beauty, through offering high-end refilla-ble cosmetics. They personally inspect each new batch for consistency in colour and texture, which helps them to maintain a consistent image. The ingredients used are organic and “remains free of parabens, silicones, petrochemical emulsifiers and synthetic fragrances”. As a result, these products have natural benefits such as UV protection and helping boost collagen. This is an attractive premise for customers as the growing wellness trend has led people to opt for products that offer holistic health benefits. Kjaer Weis have also ensured the majority of their products are Certified Natural or Certified Organic by the standards of Italy’s certification body, the Controllo e Certificazione Prodotti Biologici. The product range is extensive: • Face: Cream Foundation, Pressed Powder, Powder Bronzer • Cheek: Cream Blush, Highlighter • Lip: Lipstick, Lip Pencil, Lip Tint, The Lip Balm, Lip Gloss • Eye: Mascara, Cream Eye Shadow, Eye Shadow, Eye Pencil • Face: €52- €61.00 • Cheek: €49 • Lip: €27- 52 • Eye: €27-€43

B.E.A.M bettering environment and mind

5. Promotion

1. Consumers 2. Place

3. Product

4. Price 5. Promotion

Sales promotions are used by the brand through offering 10% off in return for an email sign up, “free shipping on orders over $50” and a “free deluxe sample on orders over $125” (Kjaer Weis, 2019). This helps encourage consumers to spend more money with the brand. The refillable packaging is designed by award-winning creative director, Marc Atlan, to create stylish compacts “similar to jewellery boxes”. This timeless design gives the compacts enduring appeal that will encourage customers to look after the refillable packaging, thus reducing waste. The brand makes it simple for their consumers to refill their products too as they provide advice via a step-by-step online guide. A shoppable online magazine featuring a range of lookbooks and stories also helps the brand reinforce their fashionable and luxury brand image.

Elate

The typical Elate customers are free-spirited females living a zero-waste lifestyle. They are passionate about sustainability and are big animal lovers. (Elate, 2019) Online Elate’s online store has a blue and earth tone colour palette that reference the colours of nature and link to the brand’s sustainable values. Elate also promotes a cradle to cradle product cycle online by listing how to recycle items at the end of their life. This educational material helps them to build an ethical reputation. They incorporate transparency into their online store through a customer reviews tab and detailed information on the sourcing of their ingredients. The brand also links their Instagram into their online store through using customer imagery and showing the number of Instagram likes each product has received. This technique helps to create a sense of community as by using customer imagery from social media they feel connected to the brand. The use of likes helps customers to make purchasing decisions as it is an authentic way of promoting the most popular products. (Elate, 2019) Stores Elate does not have stores itself however it sells its products through stockists in Australia, Hong Kong, theUS and Canada. (Elate, 2019) The brand sells refillable makeup products that are cruelty-free, organic and fair trade. The refillable compacts, tools, and palettes are made from bamboo as it is a “self-regenerating natural resource” (Elate, 2019). The products are therefore, extremely ethically conscious as they “don’t compromise the health of any person, animal or the planet”. They also sell products that come in the form of a capsule beauty collection to reduce waste products further. By creating products with versatility it also allows customers to reduce the time spent on makeup routines, thus appealing the increasingly time-poor consumer. There are three main product categories with a large variety of sub products: • Face: Prep primer, Pressed foundation, Refresh foundation, Uplift foundation, Concealer, Loose powder, Creme blush, Powder blush • Lips: Better balm, Lipsticks, Lip gloss • Eyes: Eye shadow, Mascara, Eyeliner, Brow balm • Lips: $21-$22 • Eyes: $16-$37 • Face: $4-$42 Elate uses sales promotion to encourage larger sales, for example they offer free standard shipping on orders over $75. There is the choice of one free sample with every order too. This is a clever promotional method as it introduces the customer to more of the brand’s products by allowing them to trial them first. As part of the capsule beauty collection Elate developed a questionnaire to suggest product selections. This helps the customer make purchasing decisions by reducing the amount of products to choose from and the tailored set of products creates a more personalised feel. The brand also builds on their sustainable brand image as each product refill is packaged in seed paper to sprout wildflowers. This adds value to the product by adding a unique touch to enhance the customer’s sustainable lifestyle. (Elate, 2019)

B.E.A.M bettering environment and mind

1. Consumer 2. Place

3. Product

4. Price

5. Promotion

Giella

Giella appeals to middle-class women who have a desire to be different and are interested in the world of luxury. (Giella, 2019) Online The online store carries a fresh and minimalistic presentational style with product imagery at the forefront. Models appear on the website in abstract, editorial makeup looks that help to give a fashionable impression. The website also displays products as paint-like swatches. This links to the customizable nature of the brand’s products, as much like paint mixologists, Giella creates the perfect bespoke shade. Giella also clearly explains the benefits and aspects of each customizable aspect of the products so that customers can make a more informed purchase decision. Stores Giella stocks its products in 18 locations in the US, with the founder herself offering private appointments in one store in New York. (Giella, 2019) The main selling point of the brand’s products are their customizable aspect. Each product has a number of variables to choose from including pigment; coverage; scent; level of oil-control; anti-aging properties; moisture levels; and anti-blemish options. The final blend is kept on record so that customers can re-purchase products with ease. Other appealing selling points include the use of minerals in the cosmetic’s base, allergy-friendly ingredients and the PETA cruelty-free certification. Giella also promise to mix their products by hand as they argue that this is the key to controlling the quality of the final product. This process, combined with the bespoke service allows them to situate themselves in the luxury market. The custom blend cosmetics cover the following product categories: • Foundation • Mineral Powder • Bronzer • Blush • Highlighter • Cheek Tint • Lipstick / Lip Gloss • Nail Polish (Giella, 2019) • Foundation: $50-$60 • Mineral Powder: $45 • Bronzer: $45 • Blush: $45 • Highlighter: $35-60 • Cheek Tint: $34 • Lipstick / Lip Gloss: $35 • Nail Polish: $25 (Giella, 2019)

Giella provides a number of in-store services to offer unique experiences for their customers. These include custom-blend events, professional makeup lessons, custom bridal looks and appointments with the founder herself. The varied nature of these events means that customers have many opportunities to connect with the brand in a physical setting. This also means that the brand can get first-hand feedback from their customer base, which will allow them to refine their service to more appropriately meet their needs. Giella also use sales promotions online as they offer 3 free samples and free delivery on orders over $50. This increases revenue potential of the brand by incentivising larger sales. The free samples also exposes purchasers to as many of the brand’s products as possible, resulting in an increasing likelihood of future sales. The brand communicates with their consumer through a lifestyle blog too. This brings the brand to life in and helps them build an authentic connection with their customers across all aspects of their lives. (Giella, 2019)

B.E.A.M bettering environment and mind

1. Consumer 2. Place

3. Product

4. Price

5. Promotion

Trinny London

The Trinny London customer is a fashion-conscious woman. She is a busy, professional who is always on the move. (Trinny London, 2019) Online Trinny London’s website uses a bright pink and purple colour palette to mimic the sunny personality of owner Trinny Woodall. The site also features a lot of imagery and information about Trinny Woodall. This is because she was a famous TV personality and as a result she is a crucial part of the brand’s image because the brand is an extension of her personality. Trinny is known for being an advocate for female empowerment and self-love. The website is therefore extremely inclusive as the brand uses over 100 diverse models wearing over 600 specially selected makeup looks that complement their natural beauty. The use of such a large variety of models means that the customer is able to relate to the features of at least one model, which will help them to easily choose products that will complement their complexion. They also provide application tips and videos that have come from Trinny herself. As she has personally built up a reputation for giving trustworthy style advice in the public eye, customers are likely to believe in the integrity of her advice. Store Trinny London has four stores across four cities: London, Newcastle, Dublin and New York. (Trinny London, 2019) Trinny London is a very inclusive makeup brand that creates tailored capsule makeup collections based on the unique blend of the consumer’s skin, hair and eye colour. All of their products are cruelty free and some are also vegan-friendly. The packaging of some of their products is refillable, making them more appealing to the sustainability-conscious consumer. The stackable sets also lend themselves to frequent travellers as they fit neatly inside a makeup bag.(Trinny London, 2019) The brand focuses on four product categories and has a large number of products under each umbrella as seen below: • Face: Skin Perfector,Foundation/Concealer, Contour, Highlighter, Bronzer,Mattifying Balm, Lip And Line Filler, Serum Concealer • Cheek: Lip2cheek, Blusher • Lip: Soothing Balm, Lip2cheek, Lip Gloss, Lip Colour, Metallic Lip, Lip Transformer • Eye: Eye Shade, Eye Liner • Stacks: £55-£100 • Face: £25-£35 • Lip: £16-£58 • Eye: £18-£70 • Cheek: £25-£55 (Trinny London, 2019)

Much like the other competitors, Trinny London also offers sales promotions such as Free UK delivery on orders over £50 and a free makeup bag on orders over £150. This technique is a simple way to increase the size of customer orders and boost revenue. The brand uses an in-depth questionnaire to find the perfect match for their online consumers. This technique acts as a quirky customer experience that makes the online shopping process memorable. Trinny London also has a blog covering a wide range of topics from beauty, to fashion and lifestyle. This is a perfect tool for the brand to enhance their friendly, approachable brand image. In-store promotional activities include one-to-one makeup classes. This helps brands to connect with the customer on a more personal level and enhances the brand’s value proposition. (Trinny London, 2019)

B.E.A.M bettering environment and mind

Appendix 2: Full PESTEL Analysis Political

Economic

Social

Technological

Environmental

Legal

Aims have been made by pressure groups to encourage governments to reduce excess waste. For example, the government funded group, Zero Waste Scotland, said that “that consumers should refuse all needless single-use items” (Allardyce, 2019). This interest in reducing waste has gained more traction following shows such as Blue Planet which shone a light on the catastrophic impact plastic had on the marine environment. One of the main factors effecting Britain’s current economy is the exit from the European Union. Milliken and Schomberg (2019) noted that in 2019 “the annual rate of GDP growth slowed to 1.1% from 1.3%” and this downturn may be worsened as Prime Minister Boris Johnson threatens “to take Britain out of the EU by Oct. 31, without a transition period if necessary”. This could have a major impact on businesses as it “risks causing major disruption to imports” and may lead to drops to industrial output. It is therefore evident that businesses should aim to focus on refining their manufacturing processes to minimise costs and avoid jeopardising service to their customers. Another important economic consideration is the strength of the ‘silver economy’. Shibata (2019) stated that “the number of people aged 80 years or older is projected to triple, from 143 million in 2019 to 426 million in 2050”. This means that the population will be living healthier lives for longer and in turn “grows a group of consumers, workers and innovators”. This group are key contributors to boosting the economy as The Boston Consulting Group highlighted, “by 2030, the 55-plus population in the US will have accounted for half of all domestic consumer spending growth since the global financial crisis”. There has been an increase in levels of spirituality recently among millennials, Gen Xers and Gen Z. Rather than becoming involved in traditional forms of religion they are now “embracing more spiritual beliefs and practices like tarot, astrology, meditation, energy healing and crystals” (Roy, 2019). This shows that society is looking to find new ways to bring them peace in their increasingly more hectic lives. Also, research shows that “a total of 12.8 million working days were lost because of work-related stress, anxiety and depression in 2018-19” (Palmer, 2019). This shows that it is becoming more difficult for people to find a healthy work-life balance and that increased pressure at work is having a very detrimental effect on people’s mental health. This will impact businesses as consumers will desire products enhance their mental wellbeing. They will also require products that are easily accessible as they have less time to spend searching for the right products. 3D printing technology is a hot topic at the moment, particularly in manufacturing. For instance, it can help companies to “become more responsive to customer demands” (Oliver, 2019) through the ability to personalise products to customer needs; enable localisation of production, thus shortening supply chains, reducing labour costs and limiting carbon emissions; and allow for batch production to minimise waste. Augmented reality is equally as topical. The immersive technology has several applications from a brand perspective including Experiential Marketing, which is becoming very important as businesses are discovering that “superior brand experience is the key to creating long-term relationships” (Fade, 2019). AR is also driving sales through “interfaces that allow customers to try products prior to purchasing”. The technology has manufacturing benefits as AR can be used “to design, build and test products”, thus saving costs and streamlining the design process. The Extinction Rebellion campaign gained media attention in 2019 and helped highlight the critical need for a global sustainability shift. The aim of the group is to get governments to become more transparent in regards to the “climate and ecological emergency” (The Guardian, 2019). This shows that the general population are becoming more enlightened regarding the needs of the environment.

This interest in sustainability is also filtering across to large conglomerates. Unilever aimed to half “its use of virgin plastic, by reducing its absolute use of plastic packaging by more than 100,000 tonnes and accelerating its use of recycled plastic” (Unilever, 2019). This step towards a circular economy is a move that many businesses will be looking to make in order to reduce their environmental impact New legislation in France has tapped into tackling street harassment. This new law covers “sexist insults, degrading or humiliating comments, or hostile and offensive sexual or sexist behaviour towards a person in public areas, schools or workplaces” (Willsher, 2019). As a result, the police have issued 447 fines since the new law was put into place. This is a positive step towards female empowerment by enforcing harsher punishments for everyday sexual harassment.

B.E.A.M bettering environment and mind

Appendix 3: Primary Research Survey Results

B.E.A.M bettering environment and mind

Appendix 4: Reflections

Initial Reflection The first week lecture and seminar helped open my eyes to wider global emerging trends. By looking at the most innovative marketing strategies from a range of marketing and business awards I was able to identify potential ways to tie the trends together. This helped me to consider how to solve new marketing problems and serve consumer groups that have been overlooked. Having reflected on my personal interests and strengths I decided to explore how I could link the sustainability macro trend to the mental health and diversity trends. This led me to look into refillable, bespoke makeup. I wanted to create a makeup range that was tailored to customer needs so that the stress involved in purchasing makeup was reduced. This would give customers more time back in their day to spend on doing the things that make them happy. Purchasing guilt would be reduced too as the refillable aspect would make the products environmentally-friendly, thus creating wider appeal. I also learnt about the fourth industrial revolution and so I started to consider how I could incorporate new technologies into my marketing plan, such as using Augmented Reality.

B.E.A.M bettering environment and mind

Week 5/ WGSN Feedback Reflection

Week 7/ Paul Young Feedback Reflection

By week five I had refined my concept further and started to explore competitors and target consumers. Having carried out a SWOT analysis of each competitor, I found that there was a gap in the market for bespoke, refillable cosmetics in the luxury sector. This clarified to me that my idea was innovative enough. I then started to define the types of customers that might like to buy my product and the level of demand in the market. I discovered that the beauty industry was booming and that there was a growth in the sustainable beauty sector. Once again this research reassured me that there was a real need for my cosmetic brand.

In week 7 we had another guest lecturer, Paul Young, who is co-founder of brand agency A New Kind of Kick. I had just started to think about my communication strategy at this stage so it was the perfect time for me to think about my brandâ&#x20AC;&#x2122;s tone of voice and the overall brand message. The lecture was very useful as by following the path Paul took to create a brand strategy I was able to understand the most important brand principles. These included creating an engaging story, ensuring the message is cohesive, and keeping the customerâ&#x20AC;&#x2122;s interests at the forefront. I made sure to think about these key points when building my own branding.

We also had a guest lecturer for our week five lecture and seminar. Rebecca Stevenson, a Leeds School of Design alumni, is a Marketing Leader for WGSN. The lecture Rebecca delivered gave me some invaluable information. In relation to consumer trends she noted that society was interested in buying less but buying better; interested in product lifecycles as recommence has become more popular; and are more tuned-in to market failures as social media accounts are created to hold brands accountable for their actions (Stevenson, 2019). These findings were useful to me as it showed that customers would be interested in buying a high quality makeup product that has a cradle-to-cradle product lifecycle. It also showed me that transparency and honesty was important in branding. During the seminar I summarised my concept to Rebecca to gain some feedback. This was a useful practise as it helped me define my initial idea further and made me consider potential gaps in my research. I was given some very useful advice from Rebecca as she helped me refine my USP and product offering. She said that the main element of my in-store offering should be having highly-trained makeup artists that have an understanding of skin conditions. These sales staff could then tailor the makeup formulas perfectly to each customer. This was very useful feedback as I understood that this service would help increase footfall into stores as the one-to-one experience would help create customer demand and differentiate B.E.A.M from competitors. Rebecca also made me consider how I could deliver the bespoke offering for online sales. I had not thought about this detail fully yet so I was grateful for the prompt. By Rebecca questioning me on how my model would work for each distribution channel I was able to create a more fullproof marketing plan. I decided that my business model should first start by encouraging customers to have a consultation in-store. Then once the product formulas had been created and logged on an internal system the customer could then purchase future refills online using their unique barcode.

After I pitched my concept to Paul Young he gave me some more feedback. I was told that I had over-complicated my concept as I tried to explain several problems that my product could solve such as mental health issues, cutting down on single use plastics and the need for personalisation. Paul helped explain to me that I needed to tie up the various elements under one core brand mission. This would help to create a more purposeful objective which would help create a clearer brand message. By scaling back my idea I realised what I was offering was a fully waste-free makeup brand. The makeup range reduces waste mental energy by simplifying purchasing decisions as products are tailored to customerâ&#x20AC;&#x2122;s skin and lifestyle. This helps reduce waste consumption as the customers can buy the capsule makeup collection which covers all of their needs. It also reduces waste in the environment as the refillable feature taps into the circular economy. By defining my brand in this way I was able to create a more appropriate marketing strategy that reinforced the overarching waste-free brand message, which helped give my concept more integrity.

B.E.A.M bettering environment and mind

Week 9 Reflection

Week 10/ Presentation Feedback Reflection

In week nine I attended a tutorial with Sara in which I discussed my progress and ask some questions that I had. Beforehand, I identified three main discussion points to raise in the meeting so that I could use the tutorial time more wisely. This was a good decision as I gained a lot of useful feedback during our discussion. I first asked for help with the development of my customer research. I was uncertain about how best to define my target customer as my customer spanned multiple generations. Sara suggested that I should first identify who is currently buying this type of product by looking at overall market data. Then I could group my target customer in terms of psychographic characteristics. This was helpful as I could combine quantitative market data with qualitative information to create a more comprehensive customer profile. The psychographic segmentation was particularly useful as I could define the overall lifestyle and attitudes of my target customer rather than grouping them by age.

The presentation assessment took place in Week 10. This was a good opportunity to gather all of my existing work into a concise set of slides. This helped me pinpoint the most important elements of my concept, which made it easier for me to form my executive summary. It also made me think about how I was going to present my work in my final project document, which saved me some time later. I made sure to time myself and practise presenting. This helped me deliver my pitch more confidently and also ensured that I did not exceed the time limit.

The next discussion point was my competitor research. As my main competitors were grouped by either being a bespoke makeup brand or a refillable makeup brand I was struggling to find a way to analyse them as a whole. Sara suggested I use a brand conceptual map to visualise the gap in the market for my brand. This diagram was a simple way to incorporate the various features of all the competitors such as being high-end or high-street, sustainable or unsustainable and bespoke or generic. It also signalled to me that there was a definite space for a sustainable, bespoke makeup brand in the luxury market. I lastly presented my product plan to gain some advice on how to improve it. Part of my plan was to mould the shape of the makeup packaging to the individualâ&#x20AC;&#x2122;s hand to increase the level of personalisation. However, Sara suggested that I should consider the end applications of the products. This helped me to make most appropriate design decisions. I realised that if the products packaging was not entirely flat it would make it difficult to rest products on a makeup table. I therefore, decided that I should allow customers to customise the pattern of the packaging instead. This would still allow for personalisation but would not jeopardise the ergonomics of the product. I was also overcomplicating my product offering as I was considering linking the products to customersâ&#x20AC;&#x2122; star sign. However, Sara suggested that I should have a simple core product range to start with. This would ensure that the product meets the needs of the customers and the less fussy the product is the more it fits in with the waste-free brand concept.

During the feedback I was told that I had come up with an innovative idea that addressed a wider problem. However, there were a couple of aspects that I needed to improve. My summary of my USP was inaccurate and Maria helped me realise that my real competitive advantage was the quality of the product and the experiential offering. This was useful as I could correct this before handing in my project report and I now have a better grasp of the elements that makes a product stand out in a market. I included a brand perceptual map after listening to Saraâ&#x20AC;&#x2122;s advice however, I had not considered all the comparative elements. Maria suggested that I should look at the experiential offerings of the competitors and whether they were high-end or high-street. For my final project I decided to include multiple diagrams, which helped me visualise the market opportunity more clearly and prove that there was a place for my brand in the luxury sector. There was also confusion surrounding the price of my products. I had stated the price of the makeup refill and the refillable packaging separately. Eunsuk suggested that I combine the price of the two components. By doing so it made it more evident that my products were high quality, and positioned in the luxury market.

B.E.A.M bettering environment and mind

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B.E.A.M bettering environment and mind

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B.E.A.M bettering environment and mind

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B.E.A.M bettering environment and mind

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B.E.A.M bettering environment and mind

Fashion Marketing- Final Major Project Research

Articles inside

vision Statement

74 image references

68 appendix

53 implementation plan

risk assessment and contignency plan

price

44 promotion

marketing strategy

objectives

13 macro environment

introduction to concept

34 customer segment

executive summary

25 competitor research