Essay on Brand Development Strategy of Kiehl’s
Research object: Kiehl’s
1.1 Report Objective
The goal of this study was to discuss the brand development strategy of Kiehl’s in skin care industry. Methods of analysis include customer-based brand equity, brand equity and marketing mix will be combined to review and evaluate the brand development strategies of Kiehl’s.
1.2 Company background
160 years ago, Kiehl’s was founded as an old-world apothecary 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 250 retail stores worldwide, and over 1000 points of sale supported by sales in high-end department stores, airport locations, as well as independent …show more content…
2.1.1 Brand positioning
Kiehl’s target market are females and males aged 21 years old and above. They segmented their target market according to their skincare needs as well as their spending power. The target market is divided into four segments. The first segment is female and males aged 21 to 25 years old. These consumers are either still in school or just graduated with little spending power. The next segment are females and males aged 26 to 35 years old that have been working for a considerable amount of time and have more spending power than the previous segment. The third segment are consumers aged 35 years and above. These consumers generally have more spending power and have different skincare needs than the other two segments. The last segment of consumers generally has more interest in Kiehl’s anti-aging products than the rest. Kiehl’s is marketed as a luxury skincare brands and are priced at a premium. Therefore, the second segment of 26 to 35 years old consumers have more ability than the first segment of 21 to 25 year old consumers to purchase Kiehl’s products.
Kiehl’s positioned itself within the skincare category. Ingredients would not choose on aesthetic merit. They believe that only formulas with ingredients that are truly beneficial to the skin are selected. They use minimal preservatives in their formulations.