10
I. I. I. I. I. I. I. I. I. I. I. I. I. I. I. I. I. I. I. I. I. I. I. I. I. I. I. I. I. I. I. I. Company: Yankee Candle By Lauren House YANKEE CANDLE Lauren House

Yankee Candle Brand Audit

Embed Size (px)

Citation preview

Page 1: Yankee Candle Brand Audit

I.I.I.I.I.I.I.I.I.I.I.I.I.I.I.I.I.I.I.I.I.I.I.I.I.I.I.I.I.I.I.I.I.I.I.I.I.I.I.

Company: Yankee CandleBy Lauren House

Y A N K E E C A N D L E

Lauren House

Page 2: Yankee Candle Brand Audit

Location: Headquartered in South Deerfield, Massachusetts, Yankee Candle owns and operates more than 561 stores in 46 states and one province in Canada as of June 29, 2013. The company also sells its products through a North American wholesale customer network of approximately 35,000 store locations (“The Yankee Candle Company”).

Organization and major activities, subsidiaries: The Yankee Candle Company, Inc. is the leading designer, manufacturer, wholesaler and retailer of premium-scented candles in the giftware industry. Outside of North America, Yankee Candle sells its products through its subsidiary, Yankee Candle Company (Europe), Ltd., which has an international wholesale customer network of approximately 6,400 store locations and distributors covering a combined 57 countries (“The Yankee Candle Company”).

Brand History: In 1969, Michael Kittredge created his first scented candle from melted crayons as a Christmas gift for his mother. As neighbors began expressing interest in buying his creations, Kittredge began producing these scented candles in larger quantities. The Yankee Candle Company itself was founded with help from Donald Maclver and Susan Obremski who were high school friends with Kittredge. Funded by Maclver and Obremski’s invention of a turntable taper wheel allowed production to double while at the same time decreasing the need for more labor hours. In 1975, Obremski managed the first Yankee Candle shop located in South Hadley, Massachusetts. The company slowly expanded and moved to South Deerfield in 1983. After a cancer scare in 1993, Kittredge sold the company to New York-based private equity company Forstmann Little for $500 million. Forstmann took the company public in 1999, and in 2001 Craig Rydin, CEO, launched a major advertising campaign and the line picked up by mass retailers pushing sales to their highest levels yet (“Yankee Candle”).

Financial Data: Source: Mergent Online

Key Financials(In USD as of 09/30/2006) 

Income StatementRevenue 648mNet Income 76mEPS - Net Income - Diluted 1.76Revenue per Share 16.29Balance SheetTotal Assets 422mTotal Liabilities 357mShareholders' Equity 65mTotal Assets per Share 10.58Net Assets per Share 1.63Cash FlowsCash from Operations 90mCash from Investing -60mCash from Financing -30m

Page 3: Yankee Candle Brand Audit

Annual Report: Available through Mergent Online Website www.mergentonline.com

Key personal/managers: Craig W. Rydin (Chairman), Harlan M. Kent (President), Bruce H. Besanko (Senior Vice President), Stephen Farely (Senior Vice President), Paul J. Hill (Senior Vice President), Martha S. Lacroix (Senior Vice President), James A. Perley (Senior Vice President), and Richard R. Ruffolo (Senior Vice President) (Mergent Online).

Recent News (from online database sources, newspapers, etc.): Source: Factiva November 17, 2013Yankee Candle introduces New Snow Globes Collection

November 7, 2013The Yankee Candle Company, Inc. “Wax Compositions Including a Slip Agent” in Patent Application Approval Process

October 12, 2013Yankee Candle Showcases Thanksgiving Dinner Collection

October 5, 2013 Jaden Completes Acquisition of Yankee Candle

II. Category

Category Definition: Yankee Candle is the #1 most-recognized name in the candle business and the country’s best selling candle brand. With over 150 fragrances, the company offers renowned Housewarmer line of scented candles, home fragrance products, car fresheners and candle accessories (“The Yankee Candle Company”).

Size of category in units, dollars, etc.: Yankee Candle reported $785.8 million in sales in 2011 (Factiva).

Category history and growth:

1969 - 6-year-old Mike Kittredge molds his first candle as a Christmas gift for his mother; a neighbor wants to buy it... Yankee Candle is born.

1972 - Kittredge rents retail space for his homemade scented candles in South Hadley, MA.

1974 - The young candle business, based in Kittredge parent’s basement, kitchen, and garage, moves to an old paper mill.

1976 - Kittredge hires his first employee.

1983 - Yankee Candles Moves to South Deerfield, MA.

1986 - First satellite store opens in Sturbridge, MA. Kittredge is honored with the Massachusetts Small Business of the Man Of The year Award.

Page 4: Yankee Candle Brand Audit

1989 - Yankee Candle opens its first Mall location.

1993 - South Deerfield flagship store opens one of a kind Bavarian Christmas Village.

1995 - Housewarmer Candles successfully introduced.

1996 - Ernst and Young honor Kittredge as retail Entrepreneur of the year.

1998 - Yankee Candles is acquired by Forstmann Little and Co.

1999 - Thirty years after it’s founding, Yankee Candle becomes publicly traded on NYSE. Also Yankee Candles Europe is launched.

2000 -Yankee Candle is well established as America's premier candle company with over one thousand skilled candle makers crafting more than 80 million candles each year ("Yankee Candle Historical Timeline").

2006 - Yankee Candle purchased Illuminations, a Petaluma, California-based, multi-channel retailer of high quality candles and home accessories.

2007 - Company was acquired by the private equity group of Madison Dearborn Partners LLC for approximately $1.6 billion. Michael Kittredge has since moved on and created Kringle Candle, with his son Mick.

2012- Yankee Candle Europe launched their Consumer Direct website

2013- Jarden acquired Yankee Candle (“Yankee Candle”).

Category Growth Projections: Distribution channels/methods of distribution: Owned and operated stores,

wholesale stores, online, fundraising, and direct mail. Major Manufacturing/players: Lancaster Colony Corporation provides some of the

necessary ingredients (caviar, candles, and wine glasses) practically guaranteed to result in a romantic mean. Their candle brand is called Candle-lite. Bath & Body Works operates more than 1,650 stores throughout North America and an online shop. Through their line of White Barn Candle Co. brands, BBW accounts for about a quarter of L Brands’ sales (“Top Competitors”).

Seasonal Factors: Christmas time is the busiest time of the year for The Yankee Candle Company. This busy season starts in early November and goes through Christmas. This is followed by the company’s semi-annual sale, which is twice a year in January and June. Between March and May sales tend to slow down, which is why the semi-annual sale in June is hosted to boost revenue.

Regional Factors: N/A at present

Page 5: Yankee Candle Brand Audit

Other Relevant Category Factors: N/A at present Legal Consideration: N/A at present Major Trade Publications: The Yankee Candle Company magazine Major Trade Organizations in Category: The Yankee Candle Company

III. Products Within Category Share of category by product: With over 550 retail stores, Yankee Candle is the

most loved candle in America. Product-form description (size, flavor, model, etc.): New Product introductions: Holiday candles and accessories Benefits and appeals of new products: There is a candle for everyone. With over

150 scent and about 20 new scents introduced a year, Yankee Candle attracts people for their variety and dependability.

New packages, innovations, etc.: N/A at present Recent news about product category: “Yankee Candle Launches Holiday

Fragrances” inspired by nostalgic family recipes: traditional colors of the holiday season (moss green, rich red and icy white) (Mergent Online).

IV. Brand Analysis Top brands by dollar or unit sales: Overall sales for Yankee Candle were $785

million in 2011. Lancaster Colony Corporation had overall sales of $1,135 million in 2012. These are the top two candle companies in America.

Growth trends of top brands: N/A Category share by country and by region: N/A at present Pricing trends: Large Jars and Large tumblers are $27.99. Medium jars are $24.99.

Small tumblers are $15.99. Small jars are $10.99. Sampler votive and TARTS are $1.99. Accessories differ per item.

Recent news about brand: Large jar candles increase by $3 after year 2011 (Mergent online).

V. Consumer Profile Demographics of users: Users of Yankee Candle are mainly women ages 25-45.

Yankee Candle has a new line, however, called “man candles.” This was brought about to hopefully increase the male traffic at Yankee Candle stores. All income levels and education backgrounds but range of 50k-150k with college degree are slightly higher users (“Have man candles caught on?”).

Page 6: Yankee Candle Brand Audit

Frequency of purchase/usage: N/A Place of purchase: Owned and operated store, wholesalers, and online. Heavy-user profile: Candle lovers who enjoy a wide range of selection to chose

from. Awareness and attitudes toward brand: Awareness of the brand is high and

attitudes are positive (“Yankee Candle”). Decision-makers vs. purchaser: Typically the decision maker is the purchaser. Normal purchase cycle: N/A Brand loyalty/switching: Brand loyalty is high among users, switching is low as

competing products may not offer the same value to the target consumer.

VI. Advertising/Marketing Communications Messages

o Creative strategies of top brands: N/A at presento Specific promises, appeals, claims, special effects: Price and convenience.o Examples of past and current executions:

Mediao Category and brand spelling:o Seasonality (by quarter): N/Ao Regionality (stop buying): N/Ao Media employed by top brands: o Spending patterns- flighting, continuous, etc.: Marketing expenses have

gradually increased.o Spending compared with market share: N/A at present

Promotionso Promotions used in category: There is normally two to three different

coupons a month (examples are buy 2 candles get 2 free, $20 off a $45

Page 7: Yankee Candle Brand Audit

purchase, etc.). The customer can sign up for coupons through their email, through the mail, or both. Yankee Candle also just started putting coupons in the newspaper to see if this brings in new customers.

o Major brand promotion types and examples: N/A at present o Success rates of promotions: High, I currently work for Yankee Candle and

each person I check out normally has one of these coupons. If they do not, they sign up for them at the end of their purchase.

Internet and New Mediao Website/URL: http://www.yankeecandle.com/o Purpose of site: Provide information about the company and serve as a means

to find store locations, candles, and other accessories. o E-commerce activities: Yankee Candle online web sellingo Social media activities: Facebook, Twitter, Yankee Candle blog

Other Pertinent Informationo Personal interviews: N/Ao Other information sources: works cited page.

Works Cited

Factiva. N.p., n.d. Web.

"Have Man Candles Caught On?" Compete Pulse. N.p., n.d. Web. 19 Dec. 2013.

Mergent Online. N.p., 31 Dec. 2005. Web. 16 Dec. 2013.

"Top Competitors." Hoovers. N.p., n.d. Web.

"The Yankee Candle Company." Yankee Candle. N.p., n.d. Web. 16 Dec. 2013.

“Yankee Candle." Wikipedia. Wikimedia Foundation, 12 Sept. 2013. Web. 17 Dec. 2013.

"Yankee Candle Historical Timeline." , Scented Candle Shop Information. N.p., n.d. Web. 17 Dec. 2013.