Executive Summary

Company Background

Started as an old-world apothecary in New York, 1851, Kiehl’s has celebrated its 160 years birthday with world-wide fans in 2011. Being famous of its unique formulas, Kiehl’s has invented a couple of star- products such as Kiehl’s Musk Oil and Blue Stringent Lotion over generations. In 1961, the son of Kiehl’s founder, Aaron Morse took over its family business and introduced new product lines for men. In 2000, the L'Oréal Group acquired Kiehl’s and marketed it as a high-end skin care product under its luxury product portfolio. Today, Kiehl’s can be found over 38 countries and is intensively engaged in philanthropic activities.

Kiehl's is a premium American cosmetics brand retailer, founded in New York City's East Village in 1851. It currently has stores worldwide and is owned since 2000 by the L’oreal cosmetics group. Kiehl's specializes in making premium skin, hair, and body care products, and its formulas utilize extensive herbal and pharmaceutical knowledge passed on through generations of manufacture.

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 30 retail stores worldwide, supplemented by sales in high-end department stores.

MISSION STATEMENT

"A worthwhile firm must have a purpose for its existence. Not only the everyday work-a-day purpose to earn a just profit, but beyond that, to improve in some way the quality of the community to which it is committed. Each firm－as should each person

－contributes to those around it; and by dint of its day-to-day efforts, the message it thereby imparts is a revelation of the quality standard at which its life's work is conducted.

we here at Kiehl's hope that through the quality of our products, by the manner in which our day-to-day contacts are concerned with truth, justice, and fairness, we can in some way communicate to those who may not have been aware of it that these qualities are eternal and renewable every day, making for better citizens, better firms, and better communities."From "The Mission of Kiehl's Since 1851" declared thirty years ago.

Situation Analysis

Industry Analysis

Male’s beauty product

-Skin care

-body care

-men

-hair care

Services: Customer service and retail brand experience Beyond their products, Kiehl’s is also known for their exemplary customer service and retail brand experience. Kiehl’s does not hire make-up experts – rather, they prefer to hire a diverse range of people like artists and athletes, all of whom are naturally engaging and have an aptitude to learn and teach about cosmetics.  Their sales people, called “retail partners”, are professional beauty consultants who had undergone intensive training that drills them in the chemistry, use and application of Kiehl’s products. 

Current market situation

In Malaysia there have been significant changes in the perceptions of men, with more Malaysians being concerned about their personal appearance and personal image during work or leisure time. The importance of grooming products was no longer applicable only to women, but also to men, which suggested constant demand for men’s grooming products in 2012. Eyeing this opportunity, manufacturers launched beauty and personal care products specifically targeting men. New launches by the leading players in Malaysia, such as SK-II Men’s Facial Treatment Essence, Clear Styl Express, Clear Activ Sport and Clear Hair Fall Decrease in mass men’s hair care, and Rexona V8 in men’s deodorants, helped to bolster the value growth of men’s grooming in Malaysia, resulting in strong 7% current value growth in 2012. However, the relatively large value base in men’s grooming indicates that it is approaching maturity, which meant that value growth was slightly slower in 2012 compared with 2011.

Men’s grooming in Malaysia is set to increase by a CAGR of 5% in constant value terms over the forecast period. Malaysia is expected to continue to see high urbanisation, with more male Malaysians predicted to show greater concern about their personal image, hygiene and appearance. Men, particularly the younger generation in the workforce, are willing to spend on men’s grooming products such as men’s deodorants and men’s skin care products to improve their appearance and skin condition. Higher demand for men’s grooming could also come from improving economic conditions, with stronger consumer confidence in

spending, in turn leading more Malaysian men to invest in men’s grooming products to improve their image. The higher number of male-specific magazines being published domestically, such as Men’s Health, which are overloaded with information related to men’s grooming trends and recommend men’s grooming products, will also help to raise awareness of men’s grooming needs in Malaysia over the forecast period.

Fundamental characteristics define the global and local market

-

Characteristics of distribution channel

Kiehl's established online store and a numerous bunches of local stores(specialty store) throughout the world. For consumers those preferring online shopping, it chooses the customer favorites and new coming products. On a local store level, Kiehl's works to understand each new location and develop a unique approach for that market.

Objective of Kiehl's Since 1851More than 40 years ago, Aaron Morse wrote "the Mission of Kiehl's", which

committed the company to the objective of "making for better citizens, better firms, and better communities." Today, it is focused on three primary philanthropic causes:

AIDS research and prevention, children's well-being and environment.

Targeted marketMale customers is a huge portion of Kiehl's customer base, which represent 30 to 40

percent. Both my roomates and I have been using Kiehl's daily grooming products for more than a year. Allan Motuus, the editor of the cosmetic industry The

Informationist, stated, "The kiehl's store always attracted a cutting-edge younger-crowed."(Alex Withcel, COUNTERINTELLIGENCE; New Owners Let Kiehl's Be

Kiehl's)

The Marketing Mix  Product Strategies  Compared to its competitor, Kiehl's states that it spends three to five more times on its upscale natural cosmetic products. It is also prominent on its charity events, creating an image of philanthropy for its company and products. In august 2010, Kiehl's launched its inaugural "Kiehl's Liferide for amfAR"(The Foundation for AIDS Research).

Place strategies Kiehl's established online store and a numerous bunches of local stores throughout the world. For consumers those preferring online shopping, it chooses the customer favorites and new coming products. On a local store level, Kiehl's works to understand each new location and develop a unique approach for that market.

Promotion Strategies Kiehl's applies a non-traditional marketing approach that "relies heavily on free product samples, word of mouth endorsements from existing customers, and innovative marketing techniques."(Deirdre Sullivan, Kiehl's executive reveals secrets of guerrilla marketing to fashion club)

Price Most of Kiehl's products remain at a middle range of price, but its generous sampling policy is much more appealing than that. From my own shopping experience, I got 5 samples of small packages after I made a purchase of 2 products, a body scrub and an after-scrub lotion. I could choose whichever the samples they were offering

Competitor Analysis

Category

Skin Care

Brand Company strength WeaknessKiehl’s

Body care

Brand Company strength WeaknessKiehl’s

Men

Brand Company strength WeaknessKiehl’s

Hair care

Brand Company strength WeaknessKiehl’s

SWOT Analysis

Strength

1.Overseas market.

2.The organization system is complete.

3.They fully practice their business principles and

core values.

4.They have a great plan for realizing goal.

5.They have a mature research and Development department

Weakness

Kiehls is a company which selling the product in natural. Natural is one of main ingredients of their product but it can easily copy by others. Since the customers have changed their behavior, they would concern more natural products nowadays. Every company would like to use the natural products to attract the customers. Although Kiehls has good quality of service and tailor made products but they have less advertising of their products that their target customers would not know what they are providing

Opportunity

1.It doesn’t have appealing packages.

2.They are not very well-known in Asia

1.They improve their products consulting customers requests.

2.International expansion.

3.They don't test on animals, that appeals to people who

protect animals.

4. Growing organic market.

Threat

1.Advertisements are not well-exposed.

2. Unit-price is higher.

3. Strength of competition.

4. Fluctuation of foreign exchange rates; Economies.

Customer Analysis

-Middle upper

Selective market- wet tissue paper: corporate, The characteristics have been summarized used into positive, negative and neutral (as depicted below):

Positive: Young, Trendy, Clean & fresh-looking, Stylish, Pretty/good-looking,

Sophisticated, Caring, Knowledgeable, Honest, Sociable, Professional, Confident

Negative: square, muddleheaded, ineffective

Neutral: Not famous, Prim and proper, Well-dressed, Image-conscious, Calm,

unaggressive, Sporty & active, Rich

Habit(frequency, preferences,ritual)

Expectation

Define main trend of this type of consumer

Company Analysis