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Gen Z Research Project Launch of a New Beauty Brand -- Sprinmer: build to attract and resonate with the Gen Z consumer. LXFM 501 | Business Concepts in Luxury and Fashion | Spring 2020 Prof. Devina Lalla by Ziyi Wang
ZiyiWangLXFM@gmail.com
S P R I N G
2020
TABLE OF CONTENTS
EXECUTIVE SUMMARY
04
BACKGROUND
05
RESEARCH OF GEN Z CONSUMERS
06
BRAND OVERVIEW
08
SWOT ANALYSIS
09
TARGET CUSTOMERS
11
BRAND ANALYSIS
12
COMPETITIVE ANALYSIS
16
PRODUCT DEVELOPMENT
18
FRAGRANCE
20
SKINCARE PRODUCTS
22
LIP PRODUCTS
24
PACKAGING DESIGN SKETCHES & FINAL PRESENTATION
26
LINE SHEET PACKAGE
28
SOURCES
32
EXECUTIVE SUMMARY
04
This project aims at creating a beauty brand that has the greatest opportunity to appeal to Gen Z consumers. Based on this purpose, I will do further research into the psychographic profile and purchase drivers of Gen Z consumers. Based on the research, I will develop and present a series of beauty products for my new beauty brand.
BACKGROUND In 2019 Gen Z surpassed Millennials in sheer numbers, approximating 61 million, or roughly 32% of the US population and Gen Z is beginning to take the spotlight from its more well-known predecessors, Millennials. Together, these cohorts represent around $350 billion of spending power in the US alone ($150 billion spent by Gen Z and $200 billion by Millennials), and Gen Z alone is projected to account for 40% of global consumers in 2020. Members of Gen Z are the first true digital natives. Growing up with the internet, social networks, and mobile systems has produced a generation that is hypercognitive with easy access to information that they collect, crossreference, and integrate, and they navigate a life lived online and offline. They spend 10.6 hours a day engaging with online content, and they are highly socially and environmentally engaged. 90% of these “always-on,” mobile-focused, high-spending demographic believe companies have a responsibility to address environmental and social issues. Fairtrade products, ethical business practices, and a strong mission statement have never been more essential. Gen Z consumers care about environmental issues (76% are concerned about humanity’s impact on the planet) as well as social causes such as racial, gender, and income inequality. Gen Z consumers shop with brands they feel they can interact with and can contribute to. While they care most about product quality and availability, participation and engagement are what they value in a long-term brand relationship. And for Gen Z, consumption means having access to products or services, not necessarily owning them. As access becomes the new form of consumption, unlimited access to goods and services (such as car-riding services, video streaming, and subscriptions) creates value. Products become services, and services connect consumers.
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RESEARCH OF GEN Z CONSUMERS
06
THE IMPORTANCE OF BRICK-AND-MORTAR STORE Around 9o% of Gen Z beauty consumers still prefer to shop beauty products in brick-and-mortar stores. Gen Z consumers spend lots of time in front of the screens, which makes actual being together with friends in real life is special, so many of them regard shopping as a social experience. On the other hand, in a physical beauty store, consumers can explore various products on their own, and more likely to receive a discount code or other incentives along with samples.
INFORMATION ORIENTED Gen Z is the generation that lives in the era of digital and online information, although they shop for beauty products in stores, many of them do their research online first. For example, if they need a foundation. First, they will start their research process by looking for some recommendations from favorite influencers on social media like YouTube, then search for the reviews of particular brands on websites, and choose some highly recommended brands, see the ingredients of their products, and also find reviewers with a similar skin tone and type to decide which one is worth to buy. Almost 50% of female teen beauty buyers look at product ingredients, and they are more willing to pay money for the quality and effect of a product. Therefore, putting detailed information is helpful.
SUSTAINABILITY In beauty, brands labeled vegan or cruelty-free are proving popular. Gen Z consumers are concerned more about the planet, 75% of teens said they would spend more on ethical products. Thus, sustainability is a key factor influencing beauty products’ popularity.
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BRAND OVERVIEW
Sprinmer is a sustainable and organic beauty brand launched in 2020 in NYC. The name "Sprinmer" is combined with spring and summer, which represents young and passion. The ranges will be created alongside a team of researchers and consultants in organic chemistry who specialize in organic and natural formulations to make sure the products are made from natural and certified organic ingredients. Sprinmer will start with new items of skincare products, lip products, and fragrances for Gen Z consumers, serving natural and quality products at a competitive price point.
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SWOT ANALYSIS STRENGTH Competitive price points Sell through online stores and offline retailers Sustainability
WEAKNESS Start-up brand with weak brand equity Less products
OPPORTUNITY Social Media Influencer Endorsement
THREAT Lack of competitiveness among many sustainable beauty brands The influence of COVID-19
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TARGET CUSTOMERS COHORT GROUP: Gen Z, Regardless of race, nationality, and religious background. DEMOGRAPHIC: Ages between 13-25, female, residing in an urban area. GEOGRAPHIC: US – at first, mainly consumers live in NYC. PSYCHOGRAPHIC: Prefer skincare rather than wear heavy makeup; Desire flawless and glass glow skins; Care about the planet and support sustainable brands; Have limited savings for beauty products. BEHAVIORAL: Research beauty products online before buying; Prefer videos like skincare routines rather than makeup tutorials; Often visit physical beauty stores.
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BRAND ANALYSIS
PRICE Cost Components: raw materials (including landed materials), packaging, and overhead (labor, shipping, etc). Retail Price: According to "Pricing Your Natural And Organic Skin Care Products" by Laura Badcock, a healthy retail price of natural and organic skincare in the US market is five to six times of cost, which left the company with an 80% or more profit margin. Retail Price = Cost times five Wholesale Price= Retail price divided by two
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PRODUCT According to Piper Jaffray’s semi-annual survey of 9,500 kids averaging 15.8 years old, currently, the big changes within the beauty line are that makeup sales are declining. Female teens tend to wear less makeup. “VSCO Girl”, one of the most popular trends, popularized by TikTok memes and named after the photo editing app, is a makeup aesthetic that teen girls with shiny lip, highlymoisturized face. Thus, the overall theme of beauty - “clean” leads to a skincare-focused beauty trend. At the same time, fragrances and lip products are still popular.
“I’d rather spend time making my skin clear and pretty rather than wearing a lot of makeup.” Based on the survey, Sprinmer will start with skincare products, lip products, and fragrances, which will include 8 items: fragrances, toner, essence, lotion, cream, lip balm, lip gloss, and lipsticks. The vision of the collection is featured with sustainable, fresh, and natural. Sprinmer is dedicated to building a “clean” ingredient profile, which means most of the ingredients of products are organic and natural, ingredients like alcohol that are irritating to the skin are guaranteed not to be added. Thus, all the products can fit sensitive skin. Additionally, detailed information will be put on the product page, including FAQs about active and leading ingredients. Also, we encourage customers to leave reviews on the brand’s site. As to packages, we will use sustainable packages that are made of compostable materials. For packages like the bottle of fragrances, customers can send prepaid postage to mail their empty bottles to our collaborative recycle company to recreate bottles.
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PLACEMENT
The products of Sprinmer can be found in Ulta, which offers an area for customers to try different products before buying. Also, pop-up stores will be held in shopping malls every month. In the pop-up stores, consumers can freely and deeply experience the products, to feel the vibe brought by the beauty products of Sprinmer. At the same time, if consumers don’t want to go out, they can buy products through Amazon and the official website of Sprinmer as well. Although Sophora is the first choice for many people when it comes to beauty products, Ulta has concentrated on appealing to Gen Z consumers, bringing in Morphe, Kylie Cosmetics, and Colourpop. Besides, Ulta performs well in combining both higher-end and lower-end brands, which is preferred by Gen Z. Also, Gen Z consumers are far less likely to seek help from a salesperson than previous generations, which is reflected when they are shopping in physical stores. Ulta has built their entire retail networks on this mode of selling, which allows for self-discovery and sales associate assisted shopping. Teens still love to shop for beauty in stores, but Amazon is growing. Although Amazon still lags behind physical stores, it’s becoming more popular for teens shopping for beauty and personal care. That’s why we will sell our products through Amazon as well.
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PROMOTION Social Media: We dedicate to develop attractive social media presences. We are going to promote the new campaign film, the product photo shoot, and also Influencer endorsements through various social media platforms. Digital Ads: Through major digital teenage publications, such as Teen Vogue and Elle Girl, we will keep promoting our new products. AR try-on: We will apply AR try-on feature through Sprinmer’s website to let customers test lipstick colors.
PEOPLE Inside: To build high “human” content in relevant components of the value chain, we will recruit more young employees to keep the company fresh. It can better understand the psychology of young consumers and align with their mindset. Besides, digitalization is a trend in the beauty industry, so it’s important to emphasize customer service both online and in-store to build a seamless customer experience. Outside: The core users of Sprinmer are confident and natural, they pay attention to and care about the surrounding environment. Thus, we will invite Lily-rose-Depp to endorse our fragrance to create brand awareness since Lily fits with the brand image of Sprinmer and enjoys great popularity at home and abroad among Gen Z consumers.
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COMPETITIVE ANALYSIS According to The Good Trade, the perceptual map clearly distinguishes the 15 best natural&organic skincare brands through price and product variety, as a skincare-based natural&organic beauty brand, Sprinmer can be differentiated from its competitors as the lowest product variety and comparatively lowpriced brand. Lower prices and fewer varieties can focus on attracting Gen Z customers base. They will buy our products with the mentality of giving them a try. We will improve the product formula based on customers' feedback, thereby keep launching new products.
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PRODUCT DEVELOPMENT
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After analyzing Sprinmer's six “P”s and the current market of sustainable beauty brands, in this stage, we will develop new fragrances, new skincare products, and lip products for the brand, including primary and secondary packaging, as well as marketing collaterals.
COLOR PALETTES
COLOR PALETTES
INSPIRATION BOARD
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FRAGRANCE CONCEPT IDEA Inspired by the bold, neutral, and free spirit of Gen Z girls, we start the idea of a new fragrance that describes the new Sprinmer girl. In order to show the image of fresh and wild, the scent of the fragrance is combined with fruits, flowers, and woods; the main color of the glass bottle is muted green, which represents young and passion.
PRODUCT INFO
BOLD NEUTRAL
Top Notes: grapefruit and lemon Heart Notes: white flower and lotus rose Base Notes: sandalwood and amber Fruity Florals Eau de Parfum Size: 1.7 oz (50ml)
FREE FRESH WILD VIBRANT NATURAL
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LEMON
LOTUS ROSE
PRECIOUS WOODS
PACKAGING DESIGN INSPIRATION
PRIMARY PACKAGING
Size: 3.5'(w)x 3'(h) x 1.5'(d) Capacity: 1.7oz / 50ml Materials: glass and silk Weight: 200g (0.44 lbs) Colors: white and muted green
SECONDARY PACKAGING
Sprinmer
Statement of Identity
BARCODE
Ingredient statement
Eau de Parfum
Size: 4.5'(w) x 4'(h) x 2.5'(d) Capacity: 1.7oz / 50ml
Vaporisateur | Natural Spray
1,7 FL. OZ. e 50ml
Expiration Date
name and address of the manufacturer and packer of distributor
The Green Dot Symbol
Materials: compostable cardboard Weight: 50g (0.11 lbs) Colors: white, muted pink, muted green,
(front)
(back)
and off white
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SKINCARE PRODUCTS - SOOTHING TONER
CONCEPT IDEA The skincare series will be created alongside a team of researchers and consultants in organic chemistry who specialize in organic and natural formulations. The aim is to extract natural plant essences to protect flawless healthy skin for Gen Z girls.
PRODUCT INFO This product is formulated with natural AHA and various botanical extract ingredients to exfoliate and remove dead skin cells, sebum, and skin wastes. This soothing toner is clinically proven to help pore tightening and irritation-free. Alcohol-free and PH balanced. DAISY
22
The ingredients contain natural elements like daisy.
PACKAGING DESIGN INSPIRATION
Statement of Identity Ingredient statement
Sprinmer Soothing Toner
6.7 FL. OZ. e 200ml name and address of the manufacturer and packer of distributor
Expiration Date
body
The Green Dot Symbol
(front)
PRIMARY PACKAGING
(back)
SECONDARY PACKAGING
Size: 2.5'(w) x 7'(h) x 2.5'(d)
Size: 3'(w) x 7'(h) x 3'(d)
Capacity: 6.7oz / 200ml
Capacity: 6.7oz / 200ml
Materials: compostable plastic
Materials: compostable cardboard
Weight: 100g (0.22 lbs)
Weight: 50g (0.11 lbs)
Colors: transparent, muted purple, and muted yellow
Colors: white, muted purple, and muted yellow
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LIP PRODUCTS - LIP GLOSS
CONCEPT IDEA This transparent lip gloss is inspired by the summer vibe of Gen Z girls, they are unconstraint and real, and they have a distinctive personality, so some strong and vivid colors are chosen.
PRODUCT INFO This transparent lip gloss is made of 100% pure organic, which the main ingredients are the oil of organic avocado and rose. The lip gloss can moisturize and soften the lip. This is an edible beauty product.
MOOD BOARD 24
ROSE
AVOCADO
PACKAGING DESIGN INSPIRATION
100% pure organic lip gloss organic avocado & rose soften moisturize
Ingredient statement
Statement of Identity
Sprinmer
name and address of the manufacturer and packer of distributor
Expiration Date body
The Green Dot Symbol
0.14 fl oz / 4.2 ml
(front)
PRIMARY PACKAGING
(back)
SECONDARY PACKAGING
Size: 0.5'(w) x 1.75'(h) x 0.5'(d)
Size: 0.75'(w) x 2.25'(h) x 0.75'(d)
Capacity: 0.14 fl oz / 4.2 ml
Capacity: 0.14 fl oz / 4.2 ml
Materials: compostable plastic
Materials: compostable cardboard
Weight: 50g (0.11 lbs)
Weight: 25g (0.055 lbs)
Colors: transparent, rose red, and avocado green
Colors: rose red, avocado green, black, and yellow
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PACKAGING DESIGN SKETCHES & FINAL
PRESENTATION
26
FRAGRANCE
LIP BALM
LIP GLOSS
LIPSTICK
MOISTURIZING LOTION
HYDRATING ESSENCE
SOOTHING TONER
ENERGY-BOOSTING CREAM
27
LINE SHEET PACKAGE
SS 2020 www.sprinmer.com (+1) 404-784-2043 1370 7th Ave Floor 7, New York, NY 10019 sprinmer@gmail.com
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SS 2020
SS 2020
29
SS 2020 - MATERIAL & COLOR
compostable plastic
yellow
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purple
rose red
avocado green
glass
muted yellow
muted purple
muted pink
muted green
SALES CREW
Jennifer Westwood – 404-288-3043 – jenniferwest@sprinmer.com Mario Martin – 404-783-4635 – mariomar@sprinmer.com Miranda Reimer – 404-736-0236 – mirandarei@sprinmer.com Tom Watkins – 404-363-3846 – tomwatkins@sprinmer.com
1370 7th Ave Floor 7, New York, NY 10019 www.sprinmer.com (+1) 707-727-5711 sprinmer@gmail.com
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SOURCES
https://www.thegoodtrade.com/features/natural-and-organic-skincare-brands https://library.essentialwholesale.com/pricing-your-natural-and-organic-skin-care-products/ https://www.businessoffashion.com/articles/professional/five-lessons-about-the-future-of-the-beauty-industry-straight-from-piper-jaffrays-teen-survey https://www.voguebusiness.com/beauty/branding-in-beauty-founders-startups?amp
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LXFM 501 | Business Concepts in Luxury and Fashion | Spring 2020 | Prof. Devina Lalla | by Ziyi Wang