This report is going to identify the brand development strategy of kiehl’s , The brand development strategy analysis will focus on the customer-based brand equity model from Keller’s brand equity theory, and also includes the marketing mix in the brand development strategies of Kiehl’s.
TABLE OF CONTENTS:
Brand Development Decision of Kiehl’s
Customer-based brand equity model
Conclusion & Reference
Kiehl’s is an American cosmetic brand was founded in 1851, The predecessor of Kiehl’s is an old-world apothecary in New York City .In 2000, Kiehl’s was purchased by the L'Oréal Group.Nowadays , Kiehl’s has more than 250 tetail stores in the world and over 1000 points of sale supported, providing the skincare , body and hair care products. The Mission of Kiehl's is “ a tribute to our belief in giving back; in supporting both the local communities in which we serve and the global community in which we live and thrive.” Kiehl’s is one of the top 50 most valuable cosmetics brands rank at 49th in 2013. (2) (3) (4) (5) Customer-Based Brand Equity Model
“Customer-based brand equity occurs when the has a high level of awareness and familiarity with the brand, and holds some strong, favorable and unique brands associations in memory.” (6: Keller, 2013 pg 73) From Keller’s Brand Equity Model (7:Keller et al.,2012,P.66) ,we can see the four stages of brand development and how to effectively build up a strong brand equity and the target consumers’ perceived value or not. When you have strong brand equity, you will have more loyalty customers and the loyalty customer will helps promoting your brand.
Figure 1 – Keller's Brand Equity Model (8)
Stage 1: Brand Identity
In Stage 1 is able to create a deep brand awareness, It should be develop a product first, and through the brand name ,symbol, logo, market research and based on research findings to adjust the product and the way to communicate the message with target audience, to enhance the brand recognition and awareness in customer’s mind. The brand element included Kiehl’s brand name, logo, product packaging and the Mr. Bones. First of all, you must found the Mr. Bones when you go into the Kiehl’s retail store, it is easy to recognize and provide a professional image in medicine and dedication to science. Although it is not the brand logo but it has become a interesting icon of Kiehl’s. Why it call “Kiehl’s”? It is the founder’s name – John Kiehl . The name is using over 160 years from 1851,It show the Kihel’s long history in the skincare industry. Kiehl’s logo is a simple design of “K” , It use the classic black color with a white background, make the logo looks clear and clean , it also easy to recognize and provide a natural and professional image. When you see the product packaging, you will find that the packaging is not like other skincare brand to use a gorgeous packaging design. It just look like a white medicinal bottle and a dark brown color glass bottle, use a simple design with brand logo, and show the details of the instructions, ingredients and benefits in front of the bottle. Kiehl’s is flaunted with a natural, safe, and a variety of different skin products, The brand awareness is already entrenched in the market and customer’s mind, that’s the reason why Kiehl’s can survive in the market over 160 years. Kiehl’s target market are females and males aged 21 years old and above. According to their skincare needs and their spending power, The main consumer group are females and males aged 26-35 years old. Percentage of sales in 2010 (9)
Demand analysis (10)
Kiehl's insist on produced of natural ingredients with minimal preservatives to provide the beauty products, use the uncomplicated and honest packaging, to maintain the true smell and color of raw materials, so that the skin can be assured without the burden of all absorbed....
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