Brand Management Assessment 1
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 ...view middle of the document...
” (Keller, 2008: 48) Keller’s advice is best use of customer-based brand equity can test whether the brand is effective in target consumers’ perceived value or not.
“Brand equity is the set of assets and liabilities linked to the brand. There are three types of brand asset – brand awareness, brand loyalty, and brand associations. Each creates formidable competitive advantages,, and each needs to be actively managed.” (Aaker, 2010: 176)
2.1 Stage 1: Brand Identity
The main purpose of this stage is to create brand awareness. Through repeated exposure the brand name, symbol, logo, character, packaging or slogan, or through combination of marketing mix, this can help enhance brand recognition in consumer’s mind. For Kiehl’s, it does not has graphic mark to represent the logo, the logo of Kiehl’s is the brand name, clearly written on every products. Moreover, it is interest to have Mr. Bones, which can be found in every Kiehl’s stores. Mr. Bones serve as a reminder of Kiehl's tradition in medicine and dedication to science. Keller (2008) states transferability measures the extent to which the brand element adds to the brand equity of new products for the brand. Mr. Bones can represent the secondary association of Kiehl’s, it is harmony to make alignment. It is easy to recognize. Other than brand recognition, brand recall is also necessary. People would not get confused what Kiehl’s is going to sell, it is because Kiehl’s is focusing resource allocation in skin-care ingredients, they put all the efforts in most safe, effective, natural skin-care ingredients and offer customer the best results other than develop products in other irrelevant product category. Therefore, the brand awareness in consumers’ mind is deep and wide.
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...