Kiehl's presentation

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„KIEHL‘S“ PRE-CASE STUDY MANTVYDAS VAITKAITIS SAULIUS VIDREVIČIUS EDVINAS VYŠNIAUSKAS

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Transcript of Kiehl's presentation

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„KIEHL‘S“ PRE-CASE STUDY

MANTVYDAS VAITKAITISSAULIUS VIDREVIČIUS

EDVINAS VYŠNIAUSKAS

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CONTENTS

1. WHAT IS „KIEHL‘S“?

2. THE MARKET

3. COMPETITION

4. MAIN COMPETITORS

5. THE CONSUMER

7. TRENDS IN SELECTED COUNTRIES

8. SWOT ANALYSIS OF „KIEHL‘S“

9. SWOT ANALYSIS OF „BIOTHERM“

10.SWOT ANALYSIS OF „CLINIQUE“

11.STRATEGY RECOMMENDATIONS FOR „KIEHL’S”

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WHAT IS „KHIEL‘S“?

• KIEHL'S IS AN AMERICAN COSMETICS BRAND RETAILER THAT SPECIALIZES IN MAKING PREMIUM SKIN, HAIR, AND BODY CARE PRODUCTS. FOUNDED AS A SINGLE PHARMACY IN NEW YORK CITY'S EAST VILLAGE IN 1851, KIEHL'S WAS PURCHASED BY THE L'ORÉAL GROUP IN 2000 AND CURRENTLY HAS MORE THAN 250 RETAIL STORES WORLDWIDE

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THE MARKET• MOST COMMON AND AND MOSTLY USED PRODUCTS ARE „GILLETTE“,

„NIVEA“ AND „OLD SPICE“.

• „CLINIQUE“, „DIOR“, „GIORGIO ARMANI“, „BIOTHERM“ IS ALSO POPULAR.

• MOST OF THESE PRODUCTS THAT ARE USED ARE PRE/AFTER SHAVE CREAMS, DEODORANTS, SHOWER GELS.

• THE TRENDS ARE RATHER SIMPLE: PRE/POST SHAVE CREAMS, DEODORANTS, RAZORS, SOME HAIR CARE PRODUCTS AND CREAMS FOR SKINCARE, ALSO BATH/SHOWER PRODUCTS.

• MAIN THREATS: A) SPENDING POWER; B) MENS NEED ONLY BASIC COSMETICS.

• DISTRIBUTION CHANELS: SUPERMARKETS, SPECIALIZED BEAUTY SHOPS AND INTERNET STORES.

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COMPETITION

• „KIEHL‘S“ COMPETITORS: „BIOTHERM“ „LABS SERIES“ „CLINIQUE“ „JACK BLACK“.

• HOWEVER, IN EUROPEAN MARKET, WE CAN ONLY FIND „BIOTHERM“ AND „CLINIQUE“.

• „THE BODY SHOP“ AND „L‘OCCITANE“ CAN ALSO BE CONSIDERED AS COMPETITORS.

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MAIN COMPETITORS

„BIOTHERM“• PART OF L‘OREAL LUXE GROUP

• COSMETICS HAS WATER FROM OCEAN

• NUMBER 1 WORLDWIDE IN SKINCARE ACORDING TO EUROMONITOR IN YEAR 2011

• TARGET AUDIENCE: CUSTOMER, WHICH VALUE NATURE AND NATURAL PRODUCTS

„CLINIQUE“• PART OF „ESTEE LAUDER COMPANIES,

INC“

• WORLD’S FIRST ALLERGY TESTED AND 100% FRAGRANCE FREE LINE IN THE BEAUTY INDUSTRY

• CLINIQUE DON’T USE WIDE SERIES OF PRODUCTION LIKE “BIOTHERM”, THEY RELEASE ONLY ONE SERIES PRODUCTION FOR MEN.

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THE CONSUMER

• AVERAGE MEN: ONE SHAVING GEL, ONE AFTERSHAVE, ONE DEODORANT, ONE RAZOR, ONE SHAMPOO AND ONE SOAP/BATH GEL.

• RETAIL STORES VISITORS: THEY NEED NEW THINGS, THEY WANT NEW THINGS AND THEY ENJOY NEW THINGS.

• SELECTIVE MARKET SKINCARE PRODUCTS USERS: THEY ARE NOT RANDOM GUESSERS.

• CONSUMER EXPECTATIONS - THE BEST PRODUCTS FOR THEIR PRICE.

• THE MAIN TRENDS FOR THESE CONSUMERS ARE THE NEED FOR NEW, MORE EVOLUTIONARY AND EXTRAORDINARY PRODUCTS.

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TRENDS IN SELECTED COUNTRIES

• LITHUANIA: ATTITUDES OF MEN ARE CHANGING AND THE LEADING COMPANIES HAVE SAID THAT THEY WILL DO THEIR BEST TO SUPPORT THIS GROWTH.

• LATVIA: RECORD GROWTH IS EXPECTED DUE TO STRONGER PURCHASING POWER AND ALSO IMAGE FOR LATVIAN MEN IS BECOMING MORE AND MORE IMPORTANT.

• ESTONIA: BIG ROOM LEFT FOR NEW PRODUCTS BECAUSE OF VERY LOW USE OF BEAUTY PRODUCTS BY MEN.

• POLAND: MORE FOCUS ON PERSONAL LOOKS, HIGHER EXPENDITURES ON THEMSELVES.

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SWOT ANALYSIS OF „KIEHL‘S“

STRENGTHS

• Old brand with good production• „L‘oreal“ company behind „Kiehl‘s“

brand• Natural ingridients• Samples of products

WEAKNESSES

• Low brand awareness in Eastern Europe

• Natural components are also used by other companies

• High price of products• Unattractive advertising for older

customers

OPPORTUNITIES

• Growing market in Eastern Europe• Baltic countries could be good for

reaching Russian consumers• Growing average income in Eastern

Europe

THREATS

• Good known competitors • Prices could be too high for consumers• High investments needed

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SWOT ANALYSIS OF „BIOTHERM“

STRENGTHS

• Ocean water is used for production• Number one brand worldwide• Understandable price policy• Experience of 50 years in cosmetics

industry

WEAKNESSES

• Price of products is still high• Quite hard to get products in some

countries• Small ammount of advertisement is

used by retailers

OPPORTUNITIES

• Sales points expanding• Sampling policy to attract new

customers• E-Shop could help to get products for

Eastern European customers

THREATS

• New competitors in the market (such as „Kiehl‘s“)

• Big water pollution could increase product prices

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SWOT ANALYSIS OF „CLINIQUE“

STRENGTHS

• 100% alergy free cosmetics• 30 years of experience• Strong position of usage in Eastern

Europe

WEAKNESSES

• Packaging is not attractive• Very high prices• Large ammount of profit is spended on

R&D

OPPORTUNITIES

• Big chances to raise profit

THREATS

• Not a lot of people with high income in Eastern Europe

• A lot of cheaper brands in the market• Small amount of retailer shops

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STRATEGY RECOMMENDATIONS FOR „KIEHL’S”

• POSITIVE GROWTH IN EASTER EUROPE

• EMIGRANTS ARE COMING BACK FROM THE WEST

• MEDIUM AND HIGHER INCOME MALES

• ADVERTISING

• FEMALES THAT WILL BUY BEAUTY PRODUCTS FOR THEIR BOYFRIENDS.

• MAIN AREAS: PRE SHAVE, POST SHAVE, DEODORANTS, SHOWER GELS.

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STRATEGY RECOMMENDATIONS FOR „KIEHL’S”ONLINE/IN STORE

• MAIN ONLINE BUYERS – FEMALES. MAKE THEM BUY FOR THEIR MEN!

• USE OF GOOGLE ADWORDS AND SEARCH ENGINE MARKETING

• ATTRACTIVE ONLINE STORE – SIMPLE, SLEEK, UNDERSTANDABLE

• BEST CUSTOMER SUPPORT ONLINE AND IN STORE

• BEST SALES PERSONNEL, HIGHLY SKILLED, TRAINED (TRAINING CAMPS), ATTRACTIVE

• SHOPS ADJUSTED TO SUIT LOCAL PEOPLE WITH WHAT THEY LOVE AND WORSHIP (NO SACRIFICE OF BRAND AWARENESS JUST ADAPTATION)

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THANK YOU FOR YOUR ATTENTION!

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