A Study on Kiehl's Product

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MCD 2050: MARKETING 1

ASSESSMENT 1

Minor Assignment: Business Report Plan

Student ID: 2356001
Name: Soh Jonathan En Xiang
Tutor: Ms. Deborah D’Cruz

REPORT PLAN

Name: Jonathan Soh
Designation: Junior marketing executive
Contents Page

Executive Summary………………………………………...…………………………4

1.0 Introduction……………………………………………...………………………...5 2.1 Purpose…………………………………………...………………………..5 2.2 Background……………………………………………………...………...5

2.0 Industry analysis……………………………………...……………...………….6-8 3.3 Market information………………………………………………………..6 3.4.1 Trend…………………………………………………………..6 3.4.2 Size…………………………………………………………….6 3.4.3 Market share…………………………………………………...6 3.4 Micro environmental impacts……………………………………………...7 3.5 Macro environmental impacts……………………………………………..7 3.6 Product category……………………………...……………………………8 3.7 Competitors………………………………………………………………..8

3.0 Segmentation analysis
4.8 Bases of segmentation……………………………………………………..9 4.9.4 Geographic…………………………………………………….9 4.9.5 Demographic…………………………………………………..9 4.9.6 Psychographic………………………………………………..10 4.9.7 Behavioural…………………………………………………..10 4.9 Targeting strategy………………………………………………………...11 4.10 Positioning……………………………………………………………11-12

4.0 Target Market Selection………………………………………………………….13 5.11 Characteristics of male consumers……………………………………….13 5.12 Satisfaction analysis……………………………………………………...13

5.0 Recommendation…………………………………………………………………14

6.0 Conclusion…………….………………………………………………………….14

7.0 References…………………………………………………………….………15-16

Executive Summary:

This report identifies and analyses Kiehl’s position and market in the male cosmetics industry through the use of marketing aspects such as identifying its market growth rate, market share, size, segmentation, targeting and positioning. It also highlights its strong influence over the market for male consumers as well as its brand among competitors. With all these factors, it thus evaluates, along with the characteristics of male consumers whether or not the product will be successful in future.

1.0 Introduction

2.1 Purpose

The purpose of this report is to review the appropriateness of Kiehl’s facial fuel transformer (moisturising gel) for male consumers between the age group of 26 to 35.

2.2 Background
Found in 1851 by John Kiehl, Kiehl’s was initially established as a pharmacy in New York (East Village) and has grown as an American cosmetics retailer that specializes in skin, hair and body products. Kiehl’s was acquired by the L’Oreal Group in 2000 and has more than 200 stores worldwide (Kiehl’s since 1851, n.d.)

2.0 Industry Analysis

3.3 Market Information
Khiel’s take pride in using natural ingredients that are beneficial to the skin, while using gentle formulas to create its products and maintaining a mindset to meet the needs of sensitive skin. Kiehl's is positioned as a brand that is able to meet a variety of needs. Regardless of one’s skin type, consumers can find themselves having a large variety of basic skincare products to choose from as well. In order to offer its products, Kiehl’s has adopted a “try before you buy” sampling philosophy, by giving out more than 12 million samples a year, which represents 80 percent of their total marketing budget (Upshaw, 2007, pp 48), highlighting their commitment to offer and sell products that are most appropriate for their needs.  

2.1.1 Trend
Consumers are willing to spend more on skin care as they need to keep up with appearance and maintaining their skin, therefore they seek more customized/dermatological skin care, body care and hair care products. As men increasingly demand products that are specifically targeted at them, Khiel’s has dedicated products to the male sector since 1961 and has been a fast growing category as half of the company’s current clientele...
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