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IIT CONSULTING TEAM Dec, 11st, 2015

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IIT CONSULTING TEAM Dec, 11st, 2015

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MengChen Li

Celestine McGee

Yao Yao

Qi Zhang

MengMeng Zheng

TEAM MEMBERS00

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1

3

4

The basic information about deVineshimmers and its products. Business canvas and key questions.

We used 3 types of analysis, industry analysis, consumer analysis, and competitive analysis, to develop marketing strategies.

3 main marketing strategies and several specific strategies for deVineshimmers.

Through business analysis and marketing strategies, we found out several answers to solve the critical issues of deVineshimmers .

AGENDA

01. Introduction

02. Business Analysis

03. Marketing Strategies

04. Recommendations & A to Q

2

Executive Summary00

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Women love wine and beauty

To sell products in wine stores is another way to expand market

Look deVine is trying to expand its market to online sales market

The lip products of look deVine were sold in Walgreens Our team very

deeply look into key question of look deVine , and try our best to solve them

With our recommendations, we believe that look deVine will succeed in the online market penetration

WineInspired

Walgreens

WineStores

Online

IIT

look deVine Introduction01

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Key QuestionsHow to help look deVine increase its online sales?

Is the current brand image consistent? Wine or Grape?

How to raise look deVine’s brand awareness to increase profits and penetrate online market?

Online Sales

Brand Image

Brand Awareness

Introduction01

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Business Canvas

Introduction01

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INDUSTRY ANALYSIS

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Features Industry Analysis02

Products Price Look deVine ® Beauty is an all-natural line of personal

care and beauty products. Within the skin care line; we offer a wide array of

products including, facial scrubs, body and hand lotions, eye cream, cleansing wipes and body scrubs.

Within the beauty care line, we offer tinted lip balms (shimmers), tinted lip shines, SPF Lip balms.

$6 for all kinds of lip shimmers

$10 & $24 for lip shimmers buddle

$6-$18 for body products.

Position Channel

All natural personal care and beauty products for daily use for all age.

Beauty products mainly for women with lip balms for men.

Body products for all people.

Official website accepts online orders

Drug stores (Walgreens)

Wine store

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Industry Overview Industry Analysis02

Sales Reboun

d

Growing Performanc

e

Lip cosmetics segment posted gains of nearly 9% between 2012 and 2014, with sales poised to reach nearly $ 1.4 billion in 2014.

It is currently the strongest performing segment in growth, compared to 6.4% ($ 4.8 billion) growth for the facial cosmetics market and 4.2% ($ 3.4 billion) gains for eye makeup during that same time period.

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Gemographic Industry Analysis02

72% 50% 85% 45%

18-24Lip Balm Lipstick Lipstick Lip Balm

Over 65 SeniorDemographic Users

• Gender The majority usage of woman VS. the rising demand from men• Age Lip products are widely used by the teenage group

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Features Industry Analysis02

Natural and Organic

Anti-Oxidant

SPF Ratings

UV Protecti

on

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CONSUMER ANALYSIS

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Consumer Overview Consumer Analysis02

Current Target Customer

18-55Female

Analysis Methods

Decision Making Process

Survey Analysis

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Decision Making Process Consumer Analysis02

0102

0304

Post Purchase• Satisfaction

Purchase• Physical Need• Mental NeedInformation

Collection And Filter• Function• Brand Image• Other Features

Need Recognition• Beauty• Lip health

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Consumer Analysis02

look deVine with benefits from wine

deVine beauty deVine0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

What brand name do you prefer?

BrandLook deVine with benefits from wine

In Store Online Magazine Gift Other0%

5%

10%

15%

20%

25%

30%

35%

40%

How did you discover deVine?

Channel to know deVine: online, magazine, gift

For Existing Customer

Survey Analysis

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Consumer Analysis02

21%

13%

13%5%24%

24%

which deVine product do you use now?

shimmers soaps lotionshand creams lip balms lip shines (glosses)

Main product consumer use: lip balms, lip shine, lip shimmer

16% 14% 13%22%

3%

14%8% 11%

Which features are most important during your purchase devine? Important

features impact purchase: color and scents, antioxidants and anti-aging properties, price, nature

For Existing Customer

Survey Analysis

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Consumer Analysis02

For Non Customer

Where do you shop for lip products?

drug store (Walgreens / CSV) grocerygift shop mass retail (Target / Walmart)online specialty (Sephora/ Ulta)

Shop lip product location: specialty (sephora/ulta), online, drug store

quality

brand image

advertisement & promotion

ingredients (natural, alcohol free)

0 10 20 30 40 50 60

What do you consider when you buy lip products?

Factors influence your purchase quality, function, price, brand image

Survey Analysis

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Survey Analysis Consumer Analysis02

For Non Customer

sparkle / shimmer

shine / gloss

flavor

color

taste/smell

cooling tingle

thickness/texture

hydration

0 5 10 15 20 25 30 35 40 45 50

When using a lip product what is important to you?

Features influence using: color, hydration, taste/smell

Price willing to pay for lip product: above $6 if they like it

14%

26%

27%

33%

What is the most you would pay for a lip shimmer?

$0-$3$3-$6$6-$9above $10

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Additional Finding Consumer Analysis02

Over 25 WineNew

Target Customer

• Female aged above 25 years old who love beauty and wine.

• They also care about the quality, color and scents.

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COMPETITIVE ANALYSIS

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Tom’s of Maine Burt’s Bee Aveeno Wine Country Organics

Price Lower Lower Higher Simliar

Brand Awareness 39 54 95 N/A

Competitors Competitive Analysis02

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Comparison between 3 brands

Wine Country Organics is provide 8 colors lip tint and 1 color lip balm

deVine is provide 8 colors lip shimmer, 2 colors lip shine and 1 color lip balm

Burt’s Bee is provide 14 colors lip shimmer, 6 colors lip shine and 9 colors lip tint

Products Categories

Wine Country Organics is only focus on online sales

deVine sells its product in some Walgreen and wine store, and through internet

Burt’s Bee ‘s products are sold in retailer stores, some boutique store and online

Channels

The average price of Wine Country Organics is $ 5.75

deVine’s average price is highest, equal to $ 6.13

Burt’s Bee’s average price is between $ 5.10 to $ 6.00

Average Price

Wine Country Organics

Look deVine

Burt’s Bee

Competitors Competitive Analysis02

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SWOT Competitive Analysis

S W

O T

Competitive Analysis

Mixed Up Brand Image Weak Brand Awareness No Auto-Delivery Sales

Model Limited Color Category

Mass Market Competitors

Low Industry Barrier

Growth Online Market Nature Trend Follower Advantage

Price Advantage Nature Feature Wine Feature Diversity Sales

Channel Skin Care Products

02

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SOCIAL MEDIA STRATEGY

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Social Media Overview03

40% 170Minutes/month

53%

56% 54%

Frequency Search Sharing

Time Official Website

42Billion

Engagement

Social Media Strategy

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Channel Analysis03

58%38%

4%

H1 2014: 25.75 Billion Actions 48%

48%

4%

H1 2015: 39.25 Billion Actions

Facebook: 26%Twitter: 40%Instagram: 96%

Social Media Strategy

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Channel Analysis03

FansActions

Per BrandActionsPer Post

Social Media Strategy

0.1 M / + 40%395 K / + 91% 129 / +8%

164K / +54%2.8 M / +94%336 k / + 247%

1.4 M / +27% 1.2M / +26% 2.5 K / +5%

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Strategies Social Media Strategy03

Ensure Goals for Campaigns• Increase website traffic• Increase brand awareness

Create Engaging Content

Improve Customer Service

Focus On Networks that Add Value

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Tactics Social Media Strategy03

Delivery a strong brand personality-

wine inspired

Build relationships with customers Using videos

Launching activities and

promotionCreating meaningful

content

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MARKETING STRATEGY

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Growth Matrix Marketing Strategies Analysis03

• Product frequency of use

• Quantity used

• Prolong the retention of buyers

• Better satisfy diversify customers

• Keep existing customer loyalty

look deVine

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Niche Market Marketing Strategies Analysis03

1

3

2

4

01. Identify your niche market

Why niche market?

03. Determine special needs

What makes your business so

special?

02. Access Customer

What are customers buying

from look devine?

04. Create content to meet your audience’s needs.

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Focus Strategies Marketing Strategies Analysis03

Brand Image

Rebuildgrape packag

e alcohollogo

• Use wine bottle instead of grape• Consistent logo name

• When spread wine feature, pay attention to alcohol feature

.

• All the information about grape should be change to wine

• A tube with wine bottle shape

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Focus Strategies Marketing Strategies Analysis03

01 02 03 04 05

Referral Programs

Freebies Pro Story Telling

Car Wraps Social Media Contests

06

PPC Advertising

How To Increase Brand Awareness?

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RECOMMENDATIONS

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Recommendations Recommendations and A to Q04

Brand Image

• Highlight the unique brand image “Wine Inspired Products”.• Be consistent with brand name --- Look deVine, no matter if it’s

on social media, official website and product packaging.• Redesign the logo of Look deVine, use a wine bottle or wine

glasses to replace the grape. • Communicate that all our products are alcohol-free, highlight

the benefits like more moisture and Anti-Aging customers can get from natural ingredients.

Brand Awareness

• Focus on using social media to get more brand attention.

• Share more news and promotional information with customers. Provide gift sets during holiday season to get more attention to sales.

• Referral Programs• Car Wraps• Freebies• PPC (Pay Per Click) Advertising

Increase Online Sales

• Niche market strategy, look deVine products are for wine and beauty lovers.

• Look deVine might do more on product innovation, such as provide more color of lip shimmers or more different kind of skin care products.

• Create a membership point system. • Social media campaign and promotions.

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Q & A

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THANK YOU