By Andrea, Anthony, Carson & Cate
History and Values
Kiehl's was founded in 1851 in New York's East Village by Joe Kiehl, specialising in old world apothecary. Kiehl’s produces lines in skin care, body care, and fragrances- all are organic and are formulated with natural ingredients. Kiehl’s has a long history in philanthropic causes with special edition products. Kiehl’s has worked along charities like amfAR and the International Centre for Missing and Exploited Children. Kiehl's also is environmentally friendly and conscious with their recycling program where customers can return ten of their empty containers and will receive one complimentary product in return. As an New York establishment, Kiehl’s has close ties to the city’s art scene by previously doing collaborations along with Andy Warhol, and Jeff Koons- they also support local artist for special edition packaging. Additionally Kiehl's has a reward system for invested customers. Kiehl’s was acquired by the French group L’Oreal in 2000, providing the brand with optimal retail presence. Today, kiehl’s has over 250 retail stores worldwide and over 1,000 points of sales supplemented in high-end department stores.
Executive Summary
Kiehl's Apothecary is launching a range of aromatherapy soy waxed spatial fragrances. A New York establishment around since 1851, Kiehl’s aims to market their new scents of candles by launching into the untapped market of gender neutral candle consumers. The candles will revolve around their signature scents like Kiehl's original Musk, Soy Milk Honey, and Wood Sage - drawing upon pre-existing formulas and natural ingredients from their other lines of body and skin care. Kiehl’s candles fit into the market of conscious buyers who are looking for candles to fill their spaces with the scents of natural paraben free fragrances. Whether your space is small or large Kiehl's candles burn for 50 enjoyable hours. These spatial fragrances promote self care marketed around their other lines of products. Purchasing a Kiehl's candle is a unique experience as you join the Kiehl's recycling program, when you bring in five finished candle glasses you get your next candle free! Kiehl’s love to promote minimal ingredient products while also being conscious of their packaging and sustainability.
72% of Instagram users have made a beauty or style-related purchase after seeing an item featured on the platform.
Global
consumers are operating with a sustainability mindset that influences their purchasing decisions.
Candle Sales in the US are estimated at
$2.3
billion a year.
One-third of all candle sales in the US take place during the holiday season. The US has the
largest market for organic personal care. Bath and body products are expected to reach a market value of US
15 billion dollars by the end of 2019.
Market Potential
Spatial fragrances fall into the market category of fragrances, bath and body, and the wellness market. One of the top 5 vendors in the bath and body market is L’Oreal- Kiehl’s parent company. This means that one of the most prominent companies in the market are the backbone to the production of Kiehl’s products. With market power, L’Oreal has the ability to aid Kiehl’s with their spatial fragrance launch with their pre-existing customer base. Based on previous statistics on the candle market, It is evident that candles are primarily marketed and purchased by women. Kiehl’s spatial fragrances are opening the market potential for men and women to both equally enjoying natural spatial fragrances in their personal spaces. By taking into consideration our packaging, and scents we have produced the first marketed gender neutral spatial fragrance line.
Since when have candles been limiting to its audiences?
Kiehl’s Original Musk has believed to be around in the “Kiehl Apothecary” store since 1920 and was rebranded as “Love Oil” in 1963. For almost 100 years Kiehl’s Original Musk has been enjoyed by both male and female customers.
Harley Davidson’s are placed in every Kiehl’s store. Second generation owner, Aaron Morse of the Kiehl’s family noticed that men were losing interest while women shopped in his store so he implemented these bikes to ‘entertain’ men during their in store experience.
Landscape & Trend Research
Reframing Masculinity - Insight agencies and research groups are starting to think and ask about men again. Brands and marketers are beginning to think about masculinity and in what ways it is being reshaped. Most conversations are around the idea that men should be allowed to “exist in plurality of different versions of their manhood”. This opens the potential market spot for candles drawn to a male audience, since candles are often times looked at as a feminine item. Instagram Backlash - People have become tired of the way Instagram promotes brands and sponsors content. Researchers say the tipping point in the fall of success in Instagram advertisements will be in 2019. There is identified a lack of trust and annoyance when it comes to strategically sponsored content on Instagram so our marketing will need to be mindful of this. 2019 Zeitgeist Shades - Designers are using black but in unique ways, using shapes and multiple volumes of the hues to showcase it ability to adapt negative space in a composition. Also metallics are beginning to be more prominent in design. With our design approach we might want to incorporate metallics and be conscious in our use of black. Immersive Public Landmarks - “Large-scale monuments - even if they are temporary - are being made on an ambitious scale and are both interactive and playful.” Engaging content grasps the attention of consumer. If Kiehl’s where to execute an immersive advertising campaign for it’s launch, it would be ideal to consider using the public spaces of New York while also collaborating with local artist and designers.
Fantail - “Mindful that consumers are growing weary of traditional advertising, brands are using apps.� These brand apps are usually invite only, with random selection customer selection. Like a focus group- users help with design decisions and prototype feedback. This also makes the audience feel special and apart of something. This trend creates brand loyalty and makes valued customers feel apart of the products design process. Material Innovation- Designers are rethinking the material they create with. With environmental concerns, product designers are thinking with a green thumb. With Kiehl’s close ties to sustainability it is important that our spatial fragrances have recyclable properties to them.
PESTEL Analysis
Political - The current government has cut The Environmental Protection Agency’s (EPA) budget in half. It is important that people now must be educated in sustainability when it comes to their consumption choices. Environmental- Around 70% percent of glass ends up in landfills due to improper recycling. In 2015 the US produced 11.5 million tons of glass waste. Social- Younger generations are more likely to make a purchase when it’s experience and intentions are rooted in authenticity and nature. Technological- The most prominent manufacturers in candle making technologies are located in Germany. Economical- There is a widening gap between the wellness lifestyles of the affluent and the minimal wellness amenities and products accessible to lower income people. Legal- The law doesn’t require cosmetics to have FDA approval before they go on the market.
Competitive Analysis Comparing competitors based on their offerings of similar products to Kiehl’s spatial fragrances.
Jo Malone A London based cream and fragrance company since 1983. Available in 22 country in stand alone boutiques and department stores like Selfridges. Jo Malone is part of the Estee Lauder family - a major competitor in the beauty industry. Sold in iconic simple glass packaging with a substantially luxurious metal accents and cap. ( $67 for 7 oz., $450 for 88 oz.)
Diptyque Offering a high-end skin care and fragrance line Diptyque has been around since 1961 (France). There are not many retail locations but are sold in select luxury department stores. Unique - they refer to their candles as ‘home fragrances’. (35$ for 2.4 oz., 315$ for 51 oz)
Yankee Candle The largest candle shop in the US which started in 1969 with stores in 46 states along with international shipping online. With an old timey look- Yankee candles are sold in jars and are made of paraffin wax. Yankee Candle can be seen as the more generic candle brand. ($29.99 for 22 oz and $2 for 1.75)
L’Occitane A close competitor within the same price market as Kiehl’s, L’Occitane was started in France in 1976. They celebrate the ‘essence of provence’ while offering skin care, fragrances and limited varieties of candles. ($24 for 3.5 oz)
Nest Founded in the US in 1992, Nest offers “‘luxurious home fragrance collection to make the everyday exceptional”. Their also refer to their candles as ‘home fragrances’ - attempting to heighten the perception of their brand and product. (42$ for 8 oz)
Brand Positioning
Brands are positioned based their buying/brand experience and variety of fragrances offered. X axis: Luxury and Generic Experience Y axis: Naturalistic and Synthetic Product scents
(Malin + Goetz) Malin + Goetz is centralized to New York City, opening their ‘local’ apothecary line in 2004. All of their candles handmade in Brooklyn. Matthew Malin and Andrew Goetz opened an apothecary line to support each other's skin weaknesses and needs. For a period of time prior to opening Malin + Goetz, Matthew worked as head of global sales at Kiehls. Malin + Goetz can be found at their store in Soho along with at Barneys and Saks Fifth avenue. With similar apothecary packaging, a slight emphasis on recycling and a history with Kiehl’s, Malin + Goetz can be identified as the primary competitor when it comes to spatial fragrances within a company who also has a line of skin care. With minimal and colorful packaging, Malin + Goetz is appealing to the same audience of Kiehl’s- working professionals both men and women in metropolitan areas.
Our Product
SOY MILK & HONEY SPATIAL FRAGRANCE
ORIGINAL MUSK SPATIAL FRAGRANCE
8OZ
WOOD SAGE SPATIAL FRAGRANCE
8OZ
8OZ
product description Kiehl’s line of soy wax candles, marketed as spatial fragrances, features three scents; their Original Musk, signature Soy Milk Honey, and Wood Sage which come glass cylinder 8 oz container. It features a recycled cork lid which can be monogrammed and personalized in stores. Soy based candles indicate superior quality, holding scents better and lasting longer.
Value Proposition
For
who want to transform their spaces. Our soy candles that are sustainable and artisanal are unlike ego-inflated, overpriced brands. Our offer is genuine Kiehl’s scents with minimal frills. men and women
#YourSpaceWithKiehls
SWOT ANALYSIS
Strengths- Kiehl’s spatial fragrances align with their preexisting signature scents and are encapsulated in a sleek container featuring recyclable properties. Weaknesses- Drawing men into the spatial fragrance market can be seen as a weakness as 90% of candle purchasers are women. Opportunity- Kiehl's Candles are opening up the possibilities through it’s scents and design, of how spatial fragrances can attract and market to both men and women. Threats- Threats are the more established luxury home fragrance brands that offer a wider range of fragrances at their high end boutiques. At Kiehl’s we offer a genuine experience with sincerely thought out formulas offering you the best of natural spatial fragrances.
KIEHL’s X NYC ARTIST
Kiehl’s has a history of working with New York City based artist to reinvent and design their classic products lables. With collaborations with high profile art figure like Andy Warhol and Jeff Koons, Kiehl’s also collaborates with smaller scale local artist for limited edition packaging.
‘Doodler’ Ali Mac, 2018
Andy Warhol, 1964
Jeff, Koons 2010
Marketing Mix
Place- Sold in Kiehl’s stores and online, along with their current retailers such as Sephora, Nordstrom, and Saks Fifth Avenue. Kiehl’s has over 250 retail stores worldwide and over 1,000 points of sales supplemented in high-end department stores. Product - Offering high quality soy wax candles with three signature scents from Kiehl's apothecary lines. Our spatial fragrances burn for 40 hours, transforming the scent of whatever space you are in. Promotion- To promote our first line of candles we will offer free cork embossing on our candles lids for the first week of the launch. Perfect for a personalized gift for any occasion. Add a message, initials or symbol to create your own unique Kiehl’s spatial fragrance. Our spatial fragrances will also be featured in holiday gift sets and seasonal promotions. Price- Our 8oz candle retails for $39.95. Buy all 3 candles for only $110. As part of our recycling program- bring back 5 candle containers, get one free.
Aims & Objectives
Business Objectives Applying to a wider audience of candle consumers. Expanding the female predominant market by making a conscious scent, marketing and design effort to equally appeal to men. Marketing Objectives Target the un-tapped male demographic. Selecting our packaging and design usage consciously keeping in mind our consumers and their needs and usage of this product. Appeal to environmentally-conscious consumers. Feature our sustainable packaging as a strength in our product while calling out and comparing our spatial fragrance to other products in the competitive market place. By promoting our recycling program we can optimize our customer experiences by making them conscious of their sustainable choice as a customer while shopping at Kiehl’s. Communicate our spatial scents through social media. How do you visually communicate unique scents? Our goal is to make a cohesive feed of content that communicate the visual language and cleaness that our scents convey.
The Consumer
The candle market is known to be segmented solley toward womens. With Kiehl’s spatial fragrances our goal is to build up a customer profile of both men and women. Kiehl’s spatial fragrances are segmented toward generation x and z. Made for individuals in metropolitain urban areas with their own apartment or home. Kiehl’s spatial scents are for anyone anywhere, not just limiting the pre-existing idea that candles are to be used in the home but can also be used in any space which they may occupy. The decision-making unit would be comprised of both men and women either purchasing product and spatial fragrances for themselves or for their counterparts. Purchased as gifts or intended for individual use, Kiehl’s candles are interchangeable between gender identities.
Consumer Insights
7
out of
10
households contain candles, and are most often purchased by females.
$35
$39.95
The average price for a jar candle is , positioning Kiehl’s Spatial Scents at is economically reasonable considering it’s quality ingredients and mature purchasing audience.
35%
of candle sales occur during the Christmas/Holiday season, making it ideal to market for the season and create holiday promotions.
9 10
candle users say they use candles to make a room feel comfortable or cozy, so our “spatial fragrance” and our #YourSpaceWithKiehls hashtag fits the consumer perception perfectly out of
Media Channels
By using an omni channel approach through social media, emailing and digital marketing we plan on maintaining our customers in the referral and retention stage while bringing awarity to the product and seeking growth in our pre existing male purchasers.
With a month-long Instagram posting campaign leading up to the launch we will semi frequently be posting ‘hype’ content. Starting with the odd post here and there, then building our way up to consistent post two weeks before the launch to make a cohesive feed on Instagram. By using unique imagery and design we will visually be able to hint at our spatial fragrances scents. By sharing with our hashtag #YourSpaceWithKiehls we are able to collectively see and track our launches progress and posting history.
Along with Instagram post we will also be sharing a countdown through Instagram stories with the opportunity for followers to sign up with our mailing list to know the exact specifics when our product launches. This can also measure our user traffic by being a ‘swipe up’ feature on stories.
Through Email we will suggest and bring awareness to our newest line through our hashtag #YourSpaceWithKiehls to pre-existing customers. To draw them in more we may use suggestion tactics showing how our customers can incorporate this product into their routine along with our other line of products.
Content Strategy
Our content posted on Instagram will be spread out between the holidays with our first sneak peek being posted the week of Thanksgiving. The other posts following the weeks leading up to the product's launch. For the first two weeks, we will have Insta-Stories posted to our Kiehl’s account leading up to the reveal of the product amongst our other posts. The stories will share little peeks at the ingredients. For the last week, we will create a more consistent and cohesive feed building up a following and hype regarding our new product!
During the launch week, we will have our official post as well as a press release, and a launch party with an Instagram live of all the action. We also added a new storyline for all posted Instagram stories regarding our new product and reposts for our loyal customers with their new Kiehl’s candle!
Through email marketing, we will target our preexisting customers by bringing to their attention and suggesting our new Kiehl’s spatial fragrances as well as making it clear that these spatial fragrances are suitable for both men and women. With possible promotions for the holiday season following our launch of the product.
All of these posts can be tracked with our hashtag #YourSpaceWithKiehls. This is an ideal hashtag to tag our content and track our audiences involvement because it alludes to the concept of our new product without giving specifics away. We will also encourage users to post using this hashtag once the product is revealed.
Website traffic and SEO
For Search Engine Optimization (SEO) we will seek out for relevant keywords such as: natural, sustainable, non-toxic, eco-friendly, wellness, beauty, self-care, gender neutrality. These are keywords that one thinks of beyond general candles and their connotations. Key Performance Indicators
We will measure our key performance indicators (KPIs) by mainly tracking our online traffic and growth. Through our campaign objective, we will look for a particular spark in interest and sales traffic regarding men's skin care in conjunction with our new launch of our spatial fragrance. If successful, this launch with reinforce and retain our male clientele while also bringing in more referral customers.
On our website, we may notice higher traffic by using a heat map and mouse tracking to see where online customers are drawn to most. We would like to see more growth in interest in our new launch of spatial fragrances as wells as interest in more men's products. Key dates and time to observe this will be over Black Friday and Cyber Monday and compare it to the day of our spatial fragrance launch.
B
y incorporating a promo code related to our newest product visible on the homepage is an important asset while enticing new customers through a limited time promotion. Through the ‘Spatial Fragrances’ header customers can navigate the product through scents and can also browse gifting options that will incorporate a spatial fragrance along with other Kiehl’s products.
Influencer and Press Outreach For our influencer and press outreach we strategically chose a selection of writers and creatives that we feel represent the Kiehl's brand through their unique voices. They all have a connection to Kiehl’s, our message, our consumers, or our flagship store location.
Alison Rappaport Director of Public Relations At Equinox
Rana Good Lifestyle and Welness Writer At Forbes
Casey Neistat Manhattan Based Youtube Influencer WME Entertainment
Adam Hurly Skin Care and Wellness Writer At GQ
Press Strategy
Press release strategy is to attract the attention of local New York bloggers and influencers in the beauty, health and wellness industry. Getting their presence and MaryNell Maddox interest in our launch will enhance Head Beauty Buyer and Writer for Nordstrom & the blog THE THREAD the products exposure to non- traditional candle buying audiences. A key in our press launch is highlighting the duality of use in the product: for both men and women to enjoy not just in their homes but Christoph Niemann Cartoonist also at their workspaces. For The New Yorker
Let it Burn. Since 2009 Kiehl’s has maintained a relationship with Equinox. In clubs, Equinox members enjoy Kiehl’s amenities in their locker rooms. Additionally every Equinox store sell, Kiehl’s best selling products. Going forward with this partnership we hope to feature our spatial fragrances burning at the front desk of each club.
Press Release Share Your Space with Kiehl's - Spatial Fragrances New York, NY (December 6, 2018) – Kiehl’s the New York institution of old-world apothecary announced the exclusive launch of spatial scents. Both men and women have enjoyed Kiehl's skincare, body and fragrance products since Kiehl’s founding in 1851. The spatial scents will be launched in signature scents like Kiehl's original Musk, Soy Milk Honey, Wood Sage and are uniquely sustainable in their packaging. Made with soy wax, Kiehl’s spatial scents last longer with up to 50 hours of burn time. Their sustainable packaging is made from recycled cork and is part of the Kiehl’s recycling benefits program. With 90% of candle buyers being women, Kiehl’s is pivoting and redefining the traditional market for spatial scents. On December 7th at 8pm Kiehl’s Spatial Fragrances will be launched in our historic East Village shop. Candle lit amongst New York City bloggers and writers both male and female along with industry beauty buyers and professionalsguest can share their Kiehl’s Spatial Scent experience through the hashtag #YourSpaceWithKiehls
To learn more about Kiehl’s Spatial Scents and its other products visit https://www.kiehls.com. Sincerely, The Kiehl’s Team
Launch Plan Typical to other Kiehl’s product launches we plan on staggering our content on Instagram, while covering more content through the use of stories. In Kiehl’s posting history they aim on bringing awareness to the new product while also being conscious of not detracting away attention from their other lines of products.
Instagram Post November 26th - first post hinting at a new product coming out #YourSpaceWithKiehls November 28th - Instagram live and Instagram stories of inside the Kiehl’s kitchen “Look what’s cooking in the Kitchen” November 30th- Second hinting Instagram post #YourSpaceWithKiehls
4th- Third instagram post revealing the product #YourSpaceWithKiehls 5th- Instagram Stories displaying specifics of the products and costs. 6th- Official Release Online and in Stores - Post 1st Day of Release - Press Release is now sent out 7th- PR Launch Party - Instagram live of launch party - Instagram Post from Launch Party 8th- Repost on Instagram story content from Launch Party event 10th- Send our customer personalized emails about the Launch 14th- Holiday Giveaway of spatial scents through Instagram contest 21st-23rd - 10% off candles with code MERRY online only 31st- Last Day for free personalization of cork
#YOURSPACEWITHKIEHLS