International Branding and Sustainability: Benefit Cosmetics

Almudena Solano BA Fashion marketing & communication Level 6, 2019-2020, 6FAMK002C International Branding and Sustainability CWK2 Teacher/s: Rut Turró, Linda Reichard, Cristina Lastra Word count: 1710

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1. Introduction

Content

1.1 Current situation 1.2 Desired future 2. Why to expand Benefit Cosmetics?

3. Internal analysis 3.1 Mission 3.2 Vision 3.3 Key Resources 3.4 Company organizational structure 3.5 Proposed company organizational structure 4. External analysis 4.1 PESTEL local market 4.2 Ethics and sustainability analysis 4.2.1 Local market 4.2.2 Key agents improving sustainability ecosystem 4.2.3 NGO’s 4.2.4 Industry trends 4.2.5 News related to sustainability 5. Foreign Market 5.1 Market Audit 5.2 Competitor analysis 5.2.1 Competitive analysis 5.2.2 Porter’s five forces model 5.2.3 SWOT analysis 5.2.4 Positioning map 5.2.5 Conclusions

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5.3 Market analysis 5.3.1 Purchasing behavior 6. Market entry strategy 6.1 Description 6.2 Analysis 6.3 Supportive evaluation 7. Marketing Strategy 7.1 Target 7.2 Positioning 7.3 Objectives 8. Marketing Mix 8.1 Product 8.2 Price 8.3 Place 8.4 Promotion 8.4.1 Touchpoint model 9. Sustainability Strategy 9.1 Previous analysis 9.2 Implementation of operations 9.3 Positive impact 10. Operation Overview 10.1 How does it work?

10.2 Implementation 10.2.1 Time table 10.3 Sustainability strategy 11. Future operations 12. References

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1.INTRODUCTION

1.1 Current situation In previous research, it was discovered that Benefit cosmetics is not taking advantage of the up coming trends such as, male and beauty care, gender neutral, less is more, people of color, health and well being (these are trends that have been explained in CWK1). Currently, Benefit Cosmetics is trying to be “inclusive” by uploading pictures to their social media platforms of men wearing makeup but not hiring them for bigger campaigns. It was also discovered that Benefit Cosmetics is only focused on makeup while its main competitors have now added a skincare line or new up coming skincare brands are now competing directly with BC.

(Pinterest, 2020)

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1.2 Desired future

Benefit Cosmetics has always been a brand that supports and empowers women, but it is time to change not only that but to listen to consumers’ needs and deliver what they are looking for. It is desired to attack three market opportunities: skincare, sustainability and inclusivity.

To achieve this successfully, a combined strategy will be launched and for it, a sub brand will be created: Benefacial. This sub brand will be entering the skincare, sustainability and inclusivity markets in USA.

(Pinterest, 2020)

2. Why to expand Benefit Cosmetics?

RE A CT I

VE New regulations and restrictions Falling behind up coming trends Enter new industrial market Re-structure brand architecture

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ASONS RE

Up coming direct competitors threat

PRO AC TI

VE RE ASONS

Broaden consumers base Build brand value Growth opportunities Sales expansion Diversification Sustainable positioning

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3. Internal analysis 3.1 Mission Benefit Cosmetics has always been very supportive of women. It focuses greatly on empowering women and on being a brand they can trust. It is important to highlight that their most important goal is to help women feel radiant and beautiful with the power of makeup.

“To turn every gal’s beauty frown upside down” 3.2 Vision This beauty brand is committed to create practical and beautiful products for everyday use. They want to inspire consumers to feel confident.

“To create one-of-a-kind products that solve everyday beauty dilemmas” 3.3 Key Resources Heritage: Benefit Cosmetics was created in 1976 by sisters Jean & Jane Ford.

They opened their first store in San Francisco and since then, they have proven that “Laughter is the best cosmetic”.

3.4 Company organizational structure

3.5 Proposed company organizational structure

4. External analysis 4.1 PESTEL local market of Utited States Political

Economical

Joe Biden wins US 2020 presidential election

Strongest and leading economy of the world

Fragile and uncertain political parties

Deterioration due to COVID-19

Risky political environment

Unfair income for low class workers

Social

Technological

Great gap between different

Leader in technological innovation

social group interests

Leader in science innovation

Culturally diversified country

Innovative production facilities

Population of more than 300 million

Environmental

Legal

Considerable natural disasters

Strong legal system

High polluted areas

Individual government structures in each state

Diverse ecosystems throughout the country

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4.2 Ethics and sustainability analysis

4.2.1 Local market There are several laws that seek the protection of the American environment and sustainability.

tainable Development Goals…we re-

4.2.2 Key agents improving sustainability ecosystem

cognize that our most basic bond—

Environmental Sustainability Laws in the US:

“We commit ourselves to new Sus-

our common humanity—compels us to act…we reaffirm that supporting

•

Endangered species Act

development is not charity, but is ins-

•

Clean Water Act

tead one of the smartest investments

•

The Lacey Act

we can make in our own future.”

•

Clean Air Act and Related Statutes

— President Barack Obama, Sept.

•

Federal Insecticide, Fungicide, and Rodenticide Act

27, 2015

https://thesustainabilityalliance.us/environmental-sustainability/

4.2.3 NGOs 1. Transparent Hands Foundation 2. Lutheran services in America 3. Samaritan’s Purse 4. MAP International 5. Step Up for Students 6. United States Fund for UNICEF 7. Feed the Children 8. Americares foundation 9. United Way 10. Feeding America

4.2.4 Industry trends Male and beauty care: According to Allied Market Research the Male personal care market is predicted to hit $166 billion in 2022.

Gender neutral: Brands are working on getting away from traditional gender stereotypes in order to connect with a wider audience.

Less is more: The “no-makeup” look has been trending for a few years now within the cosmetics industry.

People of color: Previously, most makeup and beauty brands were targeted towards fair-skin people and only represented by models of similar standards.

Health and well being: In the middle of a global health crisis that is coronavirus, skincare and health products have risen to become trendier than ever.

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4.2.5 News related to sustainability https://thesustainabilityalliance.us/latest/

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5. Foreign market 5.1 Market Audit The new sub brand will be introduced to the American market first. It is called Benefacial, which is a skincare brand. It will be sold firstly in the US for heritage reasons, as Benefit Cosmetics was first founded in San Francisco and it is desired to be later shipped worldwide. The American market audit can be found on previous point 4. External Analysis.

5.2 Competitor analysis

As we are introducing a new skincare sub-brand, all the following competitors will only concern Benefacial.

5.2.1 Competitive analysis

5.2.2 Porters five forces model

Threat of new entry High threat of up coming brands Great industry profitability

Supplier power Small supplier power

Competitive Rivalry

Buyer power

Main competitors

Online and physical

Stable distribution

(Glossier, Fenty Skin, Kylie

existence

channels

Skin and

Consumer information

Milk Makeup)

availability Great USP

Threat of substitution Low threat Loyal customers Great industry profitability

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5.2.3 SWOT analysis KSF: strong brand image, exclusivity, strong social media presence

Strenghts

Weaknesses

Collaborations with influencers

Does not sell worldwide

Great brand communication

Online stores only

Personalized skincare program

Local shipping only

Opportunities

Threats

Ship worldwide

Strong up coming competitors

Partnerships with beauty retailers

Lack of accessibility

(Sephora)

Regressive and traditional

KSF: Rihanna’s image, press and social media advantage

Strenghts

Weaknesses

Rihanna as brand’s face

Traditional packaging

Great product availability

Zero product differentiation

Inclusive brand

Risk of replicas

Opportunities

Threats

Create better packaging

Hesitant USP

Use Rihanna for communication and social media

Strong up coming competitors

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KSF: Kylie Jenner’s massive following, cruelty free and vegan products

Strenghts

Weaknesses

Kylie Jenner as brand’s face

Questionable product effectiveness

Powerful marketing

Expensive worldwide shipping rates

Great product availability

Opportunities

Threats

Inclusive communication

Strong up coming competitors

Inclusive products

Kylie Jenner’s scandals Lack of innovation

KSF: strong communication, natural and vegan products

Strenghts

Weaknesses

Natural ingredient products

Weak product availability

Strong brand image

Confusing packaging

Great social media presence Free specialist online appointment

Opportunities

Threats

Influencer/ celebrity collaborations

Problematic product obtaining

Enlarge product options

Strong up coming competitors

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5.2.4 Positioning map

Inclusive

Sustainable

Unsustainable

Classic

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5.2.5 Conclusions

It can be observed that these 4 brands will be direct competitors with Benefacial. Although, we believe that our USP can outshine each of theirs. It is important to mention that Benefit Cosmetics’ customer base will be used for direct marketing to introduce the sub brand Benefacial and this gives us a great advantage over our direct competitors. It was also observed that none of these brands have unique and outstanding packaging, which will not be the case of Benefacial as this is one of the strongest USP from Benefit Cosmetics.

6. Market entry strategy

6.1 Description To meet the goals for the brand (skincare, sustainability and inclusivity) Benefit Cosmetics will be entering the skincare market with the sub brand Benefacial in the United States.

6.2 Analysis “By 2025, the global skin care market is estimated to be 189.3 billion U.S. dollars.” (Statista, 2020) Additionally, due to COVID-19, the skincare market had an enormous increase in sales in the United States. After an extensive research, it was determined that Benefit Cosmetics should join the skincare trend with its new sub brand. This represents a big opportunity for sales growth and to reach a new a bigger audience.

6.3 Supportive evaluation The launch of Benefacial will be closely monitored to prevent future disadvantages and to anticipate opportunities. To meet the previously stated goals, Benefacial will be a sustainable sub brand by only using recycling materials to create the containers (deeper explained in section 9.2). Additionally, all the ingredients will be plant based and vegan. Benefacial’s products will be available online and offline at Benefit Cosmetics’ website and physical stores. For starters, the products will be only shipped and sold in the United States, to test the skincare market.

7. Marketing Strategy 7.1 Target “Benebabes”

Besides the already Benefit Cosmetics’ customer base, Benefacial will target men and women between 17 to 34 years old, with mid and high income, who are interested in health and self-care, who are interested in sustainable alternatives and loving, caring, fun and empowering people.

7.2 Objectives •

Create unique natural formulas for the new products to differentiate Benefacial from its competitors.

•

Create a fully sustainable and cruelty free brand.

•

Create inclusive, diverse and ethical content for the social media platforms of the brand.

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Reach a wider audience.

•

Expand sales and enlarge profitability.

8. Marketing Mix 8.1 Product

Benefacial will continue to communicate Benefit Cosmetics’ values, mission and vision. The containers will be made from recycled materials and the packaging will remain to be fun and entertaining just as Benefit Cosmetics’. A small line of products will be launched to forecast its success. This line will include cleanser, moisturizer, rosewater spray, face wash and face mask.

Proposed designs for packaging:

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8.2 Price Benefit Cosmetics actual prices range from 5$USD to 90$USD. For Benefacial it is desired to keep this same rage of prices. The prices for the first skincare line can be seen below:

Benefit Cosmetics, 2020.

8.3 Place Benefacial will have its own website extension. To complement the user’s experience, a Skincare quiz will be added to the site, in which customers can receive a totally personalized skincare routine with Benefacial’s products.

SHOP NOW

TAKE QUIZ

Supply chain:

Created by the author

8.4 Promotion Dermatologists and specialists review and approval To promote trust and transmit security and responsibility, the skincare specialists Dr. Sandra Lee aka Dr. Pimple Popper and Dr. Trevor Cates aka The Spa Dr. These specialists were chosen firstly because they are very active and well known on social media. Additionally, Dr. Trevor Cates loves using, recommending and creating skincare products produced with natural ingredients. On the other hand, Dr. Sandra Lee has a massive following on social media and her opinion is well respected and trusted.

Dr. Trevor Cates

Dr. Sandra Lee

“Take me back” campaign To create a sustainable and ethical brand, Benefit Cosmetics will promote the “Take me back” campaign, which will recover empty makeup containers. The process of this campaign will be explained deeper in section 9.2.

Brand ambassadors To generate brand trust and create brand awareness, 2 influencers and experts will be hired as brand ambassadors. These influencers are @skincarebyhyram and @james_s_welsh. They will be involved in the launch of the brand and will help promote it.

Hyram and James will receive PR packages to do an unboxing and

@skincarebyhyram

@james_s_welsh

review the skincare line on their social media platforms. They will also do an announcement on Instagram to let their followers know that they are brand ambassadors of Benefacial.

Desired post for brand ambassadors

Skincare quiz + website

To increase brand loyalty and become trustworthy, each costumer will have the opportunity to answer an online quiz. Based on their answers, they will receive a recommended

TAKE QUIZ

skincare routine that best suits their necessities.

Additionally, a website extension will be created to direct customers to Benefacial’s product line. This is will facilitate the process

SHOP NOW

of analyzing the behavior inside the online store to forecast further opportunities and disadvantages.

Influencers campaign The influencers @luckybsmith and @claudiasulewski will be hired to collaborate with them in a national advertising campaign.

Along with the previously mentioned ambassadors, they will also promote the launch of Benefacial. This campaign will be based on the slogan “Natural is good. Natural is Benefacial for you” and will consist on the influenClaudia Sulewski (2,35 M Youtube) Lifestyle & Vlogs

cers uploading a picture like the following with the said slogan as a caption.

Lucky Blue Smith (2,8 M Instagram)

Desired post for brand

Lifestyle & Fashion

ambassadors

8.4.1 Touchpoint model

Customer service In-store

Labelling

experience

Brand ambassadors

Advertising

Social Influencers

media

Website

9. Sustainability Strategy 9.1 Previous analysis As previously stated, sustainability is an important factor that possible leads look into. Therefore, Benefacial skincare line will only be made from organic and natural products. All the products will follow a strict protocol to have a responsible and ethical production.

Furthermore, all operations will be published on Benefacial’s website to be as transparent as possible.

9.2 Implementation of operations Benefacial will provide 100% recycled containers with each product.

It is expected that the customers return the empty containers in any indicated container at Benefit Cosmetics stores. When customers return 3 or more makeup containers, they will receive a free Browfix.

These containers will be first separated by materials.

Then, each material will be crushed, pelletized and this mixture will finally generate the raw materials which will be used to create the 100% recycled new containers.

9.3 Positive impact In addition to the “Take me back” project, Benefacial will be a 100% cruelty free brand. The PETA certification will give our customers a feeling of relief when buying any of the skincare products.

From 2000 to 2017, the PET bottles recycled in the US is an estimation of 1.7 billion pounds. The forecast for the following years will be doubled.

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10. Operation Overview 10.1 How does it work?

Benefacial will be first announced by our brand

10.2 Implementation To have a clear control of the ma-

ambassadors and influencers. Brand ambassadors will

naging of Benefacial, the following

receive PR boxes and influencers will post about Be-

time table was developed.

nefacial on their Instagram stories; both tagging Benefacial’s Instagram profile. A countdown will be posted Benefacial’s website and social media to generate hype.

10.2.1 Time table

10.3 Sustainability strategy This strategy can be found on section 9 of this document.

11. Future operations Benefit Cosmetics is a very successful beauty brand and nothing less is expected from Benefacial. For future operations, collaborations, special gift and Holliday boxes will be planned.

12. References

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Glossier.com. 2021. What Is Glossier - About Us | Glossier. [online] Available at: <https://www.glossier.com/about> [Accessed 3 January 2021].

Glossier.com. 2021. Glossier | Skincare & Beauty Products Inspired By Real Life. [online] Available at: <https:// www.glossier.com/picks/build-a-routine> [Accessed 3 January 2021]. iBuzzle. 2021. Understanding Proactive And Reactive Management Styles With Examples. [online] Available at: <https://ibuzzle.com/understanding-proactive-reactive-management-styles> [Accessed 3 January 2021].

Kylie Skin. 2021. ABOUT. [online] Available at: <https://kylieskin.com/pages/about> [Accessed 3 January 2021].

LVMH. 2021. Benefit Cosmetics, Makeup, Beauty, Skincare - Perfumes & Cosmetics - LVMH. [online] Available at: <https://www.lvmh.com/houses/perfumes-cosmetics/benefit/> [Accessed 3 January 2021].

Milkmakeup.com. 2021. About Us. [online] Available at: <https://www.milkmakeup.com/about-us.html> [Accessed 3 January 2021].

Statista. 2021. [online] Available at: <https://www.statista.com/topics/3138/cosmetics-consumer-behavior-in-the-us/> [Accessed 3 January 2021].

Statista. 2021. [online] Available at: <https://www.statista.com/statistics/764249/men-skin-care-routine/> [Accessed 3 January 2021].

Statista. 2021. [online] Available at: <https://www.statista.com/statistics/712774/share-of-organic-beauty-and-personal-care-products-purchased-us/> [Accessed 3 January 2021].

Skin, A., 2021. About | Fenty Skin. [online] Fenty Beauty. Available at: <https://www.fentybeauty.com/fenty-skin/ about-fenty-skin> [Accessed 3 January 2021].

Statista. 2021. [online] Available at: <https://www.statista.com/statistics/254612/global-skin-care-market-size/> [Accessed 3 January 2021].

Statista. 2021. [online] Available at: <https://www.statista.com/statistics/207593/total-pet-containers-recycled-inthe-us/> [Accessed 3 January 2021].

Tribe, B., 2021. Environmental Sustainability - The U.S. Sustainability Alliance. [online] The U.S. Sustainability Alliance. Available at: <https://thesustainabilityalliance.us/environmental-sustainability/> [Accessed 3 January 2021].

Witiger.com. 2021. Why Export, Proactive Reasons And Reactive Reasons. [online] Available at: <http://www.witiger.com/internationalbusiness/whyexport.htm> [Accessed 3 January 2021].

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