I would like to thank my parents, Mum and Dad; thank you for your endless love and support throughout my studies. Without you both, none of this would have been possible. I would like to express my gratitude to my tutor, Suzanne Winfield. Thank you for guiding me through my final year with your expertise, patience and kindness. I would also like to take this opportunity to thank the rest of the Fashion Marketing and Branding tutors for their support over the last three years.
Introduction
6
Aims & Objectives
8
Rationale
9
Methodology
11
Research Limitations
14
Market Drivers
17
Current Market
20
Impacting Factors
21
THE OPPORTUNITY
BRAND IMPLEMENTATION Marketing Objectives 52 Marketing Strategy 53 Communication Objectives 56 Beauty Bloggers 57
Primary Research Findings
25
Website Mock Up 59
Focus Group Insights
26
Social Media Mock Up 60
Choosing the Channel
28
Magazines 61
SWOT Analysis
31
Launch Event 62
Positioning Maps
33
Marketing Mix 63
Competitor Chart
35
Competitor Analysis
36
Ansoff Matrix
38
BRAND SITUATION
BRAND MANAGEMENT Product Costs 67 Marketing Budget 68 Profit and Loss 69
The Idea
39
Sensitivity Check 70
Ingredients
40
Break Even 71
HPP
42
Timeline 72
Brand Essence
43
Measures of Success 74
Branding
44
Citations 75
Consumer Segmentation
46
Bibliography 78
Porter’s Five Forces
47
Appendix 81
Fig 1
Throughout research in stage one, the nutri cosmetics industry in the UK was methodically analysed whilst also investigating the barriers within this developing sector. Strategic analysis has helped form a strong understanding of the factors that affect the nutri cosmetics industry both positively and negatively. Stage one research exhibited various consumer and industry expert opinions and attitudes. Consumers find it important to feel that they are making a change to their external health through their internal health. Both primary and secondary research demonstrated a comprehensive study that has led stage two research to be specifically in depth. From the development of future thinking to stage one, a concept idea for a beauty drink derived which requires further robust research. This is to support a solid stage two marketing strategy for the drinkable skincare market in the UK. As research has established that skincare is becoming convenient and multi-functional, it is imperative to understand the type of RTD beverage (ready to drink) that will benefit the consumer’s current lifestyle.
6
To analyse the current drinkables market and distinguish a gap for a high street retailer. To create a nutri cosmetic product which blurs the lines between existing products, which are ‘inexpensive and ineffective’ or ‘expensive and not personalised’. To create an accessible and viable nutri cosmetic product for the conscious consumer whilst maintaining the innovation behind drinkable skincare. To offer the nutri cosmetic product through a tailored service whereby consumers can be educated on ingredients best for their skincare. Through the nutri cosmetic concept, further build brand awareness, consumer loyalty and increase sales. To develop a compelling and comprehensive communication strategy for the existing brand that is achievable, both financially and realistically.
8
“There is an enormous opportunity for brands to encourage consumers to think about beauty from a lifestyle perspective and push the message that health = beauty. ” (Varlet, 2015)
The influence health and wellbeing has had on beauty and skincare has influenced consumers to be mindful of what they consume. Consumers play a key role in nutri cosmetics as their attitudes and behaviours influence the way brands respond. Boosting inner wellbeing through consumption has never been more vital in consumer lifestyles. As the nutri cosmetic market is increasingly growing; it has become paramount that consumers should be mindful of developing skincare trends through retailers. The ‘beauty from within’ trend has influenced major retailers such as super markets to stock budget ‘beauty’ drinkables whilst influencing cosmetic only retailers to stock exclusive yet high margin drinkables. Research from stage one highlighted that the main issues in the UK’s nutri cosmetics industry were that although consumers understood the benefits of fruit and vegetable extracts, consumers had low awareness on specific beauty ingredients. Another issue was that consumers were not aware of the innovative shift from products applied directly to the skin to nutri cosmetics taken orally. This is primarily down to nutri cosmetics not being adopted and commercialised by high street beauty retailers.
9
Retailers are striving to provide and deliver the best products and services for their consumers. Space NK is currently the only stockist for nutri cosmetics on the high street but with competition from renown luxury retailers in London such as Harrods, Selfridges and Harvey Nichols, it is important for a convenient product to be widely accessible at a lower price point for the conscious consumer. Stage one research also found that price barriers are causing a future concern for the growth of nutri cosmetics; therefore, it is important to create an accessible and viable solution. Consumers want to be educated on ingredients whilst keeping convenience a prime factor; consumers are conscious about seeing quick and effective results, ideally through a personalised service. A key factor involving beauty drinkables is that ingredients can hold 1,000 times their weight in water; this makes drinkable skincare products revolutionary and beneficial to skin, as results are quicker.
10
To conduct further primary research, qualitative and quantitative methods were utilised. This was to ensure that the study for stage two was as accurate and feasible as possible with the current and potential consumer. Consumer behaviours and attitudes were explored for various parts of the proposed concept. In addition, relevant industry experts were interviewed to gain an in depth understanding of the industry perceptive and what would be the best direction onward. This also permitted a professional contribution to the understanding of the research topic further. A questionnaire was carried out which targeted a random sample of male and female’s aged between 18 and 60 plus. Preferences towards the concept and ingredients were explored through the questionnaire as well as a focus group consisting of five millennials aged 21, 25, 29, 32 and 35. Additionally, four one to one interviews were also directed with existing Space NK consumers to further enhance understanding about the proposed concept, aged 24, 26, 28, 30. Observation studies were also carried out in various retailers in different cities. Secondary research has been conducted meticulously to enable an extensive research development for realisation stage two. Reports from established sources such as marketing research firm Mintel, trendforecasting source WGSN and leading publishers ‘Global Industry Analysts’ have been utilised to exhibit the validity of the proposed concept and research. All research throughout this study is reliable, current and consistent due to the specialist field the secondary sources work in.
11
Quantitative data was collected through a questionnaire; this was the most appropriate research method to capture consumer attitudes towards the proposed concept. The questionnaire had 300 respondents, which were split equally over the following three cities: London, Nottingham and Birmingham. The aim behind this was to obtain a wider geographical response in comparison to stage one research, which was based in Nottingham city only. The questionnaire collated responses from 300 participants of which 89% were female and 71% were millennials aged between 18 and 35 (see appendix 1, charts 1 & 2). The response from a high percentage of millennials allowed the research to continue having millennials as target consumers for the business concept. Qualitative research methods were appropriate for realisation stage two so that further exploration could be initiated in regards to the proposed concept and how to enhance it. A focus group consisting of five female millennials was organised and were asked their opinions on a drinkable product for a high street retailer. This also included their past and current experiences as well as their knowledge on scientific ingredients. This reason behind why this demographic was chosen for the focus group was because the questionnaire revealed a high percentage of female millennials. The research had to be in correlation with one another so that it was reliable and relevant to the potential target market for the concept.
12
A combination of open and closed questions allowed for various responses in the questionnaire, interviews and focus groups. A series of closed questions enabled the research to easily construct visual charts and graphs to review the findings, whilst open-ended questions gave a detailed insight into consumer opinions. Multiple-choice questions were included to allow the respondents to give more than one response where appropriate. This ensured the respondents were not limited and could express their attitudes freely.
Limitations identified within realisation stage two were that the respondents from the qualitative or quantitative research were not global consumers. Although this project will be based on the UK nutri cosmetics market, it could have been useful to understand what the global behaviours attitudes are towards the proposed concept, as users of nutri cosmetics ultimately aim for similar if not the same results. However, 300 respondents ensured a robust sample, which delivered a reliable representation of the millennial demographic in various parts of the UK. The high percentage of females can be considered a limitation as the response is biased due to the small number of males who contributed. Although nutri cosmetics are primarily targeted at females, the future growth of nutri cosmetics can be considered for males also and insights from both genders equally could have presented contrasting responses. As mentioned previously in stage one, industry expert views can be biased as they are exposed to one brand. Consumer interviews could be doubled but due to time restraints, four in depth interviews felt applicable. Nonetheless, stage one limitation of observation studies being undertaken in different geographic locations have been completed for realisation stage two to implement comparisons between what nutri cosmetics retailers sell. Another stage one limitation also has been completed, a slightly wider age gap between focus group respondents to ensure a variety of millennial ages.
14
Fig 2
L TRENDS GLOBA rim en ta l
ls ageing popu lati on
fi c ati gr
beauty from within
WELLBEING
personali sati on
nia
ECO ICO NIC
n ille
NUTRI COSMETICS MARKET
H&
conscious multi consumer functional
m
CO N
ITY BIL A n IN ati o
expe
ALT HE
free ati ve er v s e pr
Fig 3
ing
URE CULT CE EN NI transparency ient VE red
i ns tan t
SU ST A
After considering the market drivers, it is important to understand the trends and issues that the nutri cosmetic industry faces globally as well as in the UK. Agreed that nutri cosmetics are all about the ‘beauty from within’ element, boosting inner wellbeing through transparent, natural and scientific extracts. However, it cannot be overlooked that consumers are not exposed to the full potential and benefits of nutri cosmetics. As consumers have always been exposed to skincare products that contain harmful ingredients causing chain reactions, such as cheap moisturisers and foam cleansers, it is almost hard for consumers to believe that something that contains zero harmful ingredients will actually be beneficial or will provide substantial results. 17
Consumers seek instant gratification, they want to feel as if something is physically working on the skin, and the after effect from using a cleanser (for example) is what drives them to continue purchasing cheap and ineffective products. Nevertheless, the exposure that the beauty blogging world and social media has given to natural products over the past five years has had many consumers reconsider.
“Products
including those labelled “alcohol free,” may contain other alcohols, such as cetyl, stearyl, cetearyl, or lanolin alcohol. These are known as fatty alcohols, and their effects on the skin are quite different from those of ethyl alcohol. Isopropyl alcohol, which some consumers may think of as drying the skin.” FDA, 2005. *Website states that document is current and is updated only as needed.
Consumers are becoming more conscious what they put on and in their bodies. Yet, with the lack of high street retailers taking on this revolution under their product portfolio, how can consumers understand the core internal and external benefits nutri cosmetics can provide? The demand for products that are paraben, preservative, alcohol and sodium laureth sulfate (SLS) free has risen and yet some ‘organic’ products, which consumers consider sustainable, still contain alcohol.
“The multifunctional trend has rapidly gained currency as a convenient and cost effective beauty solution.” Yeomans, 2015.
Multi-functional products are becoming increasingly popular as consumers are pressed for time and lead busy lifestyles; they want to gain as many benefits as they can in one use of a product. Ready to drink beauty products predominantly do offer multi-functional benefits as a liquid can target the body much more effectively and quickly than tablets or pill forms of nutri cosmetics. Consumer loyalty, knowledge and recognition is what will support the growth of nutri cosmetics. It is imperative to relay the message across to consumers that nutri cosmetics is not about just looking good but the focus is about improving health and boosting your inner wellbeing through oral consumption. 18
“Europe is the second largest nutricosmetics market and held 38.30% of the global market. � (Transparancy Market, 2015)
Stage one encompassed the substantial growth that the nutri cosmetics market has had over the past few years. The market has had international strength and will continue to do so, reaching 7.4 billion sales globally by 2020 (Global Industry Analysts, 2015). Further insight for this study included obtaining statistics on the global beauty drinks market to understand the current market situation. The global beauty drink market will be valued at over £10.6 million by 2019 (Technavio, 2016), demonstrating solid growth by a small segment of the nutri cosmetics market. As the forecast for beauty drinks globally is considerably high, it highlights that drinkable skincare is in demand by consumers and is continuing to grow. With the nutricosmetics market including pills, powders and jellies to name a few, ready to drink beauty beverages are the strongest growing products in the segment (Cosmetics Design, 2015) which suggests a rising opportunity in the market for the health conscious consumer. The market for beauty drinks is progressing with retailers starting to adopt the trend into their stores and consumers being exposed to the multi-functional properties drinkable skincare has. It’s important to consider the viability of the beauty drink for the UK and research statistics globally are promising continued growth and encourage the prospect.
20
DELIVERING ON DELIVERY
“Whatever the delivery, ensuring that the ingredients are pure is critical, as is appealing to an active, fit, on-the-go consumer. ” (Brody, 2015)
The product route to consumer is a key consideration for business ventures as it determines the way consumers adopt particular products. Consumers have had issues with believing the efficacy of nutri-cosmetics when they have been delivered in pill form due to their medicinal association. Chewable nutri cosmetic products are associated with confectionary thus raising consumer concerns surrounding their ingredient content. As the delivery of these products don’t reflect them as being ‘pure’ or ‘natural’, the health conscious consumer will not buy into them as serious lifestyle products. As manufacturing technologies have advanced and nutri cosmetics can be offered in a variety of ways, it’s important to adapt the product delivery so that consumers do not have acceptance issues on the performance and efficacy of the product. DIFFERENTIATING WITH QUALITY Delivering the product with ingredients that have great taste naturally and have been proven to give measurable results will entice the consumer. As internal and external wellness is important to consumers, they constantly seek high quality products that will be most beneficial to them. Consumers value their health and skin and offering a beauty drink that will offer transparency will elevate the product to be desirable and honest.
21
LEARNING FROM MISTAKES In 2009, Nestlé introduced a fortified water drink ‘Glowelle’ that had anti-oxidant and vitamin properties benefitting the skin. However, the beauty drink was taken off the market due to consumer complaints of the drink containing high levels of sugar and being overpriced. The drink had been launched into a market where drinkable skincare was not well sought and had lack of awareness surrounding nutri cosmetics. However, now 7 years on the global market offers various beauty drinks with a vast range of benefits. The proposed beauty drink should cater for the health conscious consumer with no added sugars whilst having only pure and organic ingredients. BECOMING A LIFESTLE
“ We are integrating how we live and what we consume and how it affects our overall health, vitality and appearance. ” (Simpson, 2015)
Consumers are now realising that beauty does not only represent the way they look, but also the way they feel. Drinking nutrients and vitamins derived from natural ingredients plays a huge part in allowing consumers to feel good internally. Nutri cosmetics that have to be taken as ‘added extras’ in consumers existing daily routines can be off putting such as pills. Therefore, it is important to offer the beauty drink as a product that can be integrated into the consumer’s routine as an enjoyable beverage. Although, the delivery must be palatable and multi-functional, the proposed beauty drink must reflect that its properties are beneficial towards both the body and skin.
22
Fig 4
Please see appendix 1 for all survey result charts for this section. Primary research enabled a reliable and meticulous understanding of consumer behaviours towards drinkable skincare and the proposed concept. 300 respondents were asked how appealing is a beauty drink tailored to their needs on a scale of 1 to 10, 10 being very appealing; 83% rated 8, 9 or 10. This clearly demonstrates a strong opportunity for a beauty beverage to a large percent of consumers. Although 78% of respondents stated that they do not have any products tailored to their skin, 76% of respondents would prefer a tailored service to be in store. This suggests consumers would prefer hands on experience with what they will be buying and whom they will be buying it from. An emotional connection to build on brand trust and loyalty is imperative when it comes to offering a tailored service for consumer’s internal and external wellbeing. When considering consumer buying behaviours in skincare, they were asked which retailer they shop at the most, from a multiple-choice question, 40% opted for Space NK, which was the most popular choice. Further insights revealed that a 7-day supply would be most beneficial for consumers when considering a beauty drink with 66% opting for this. Focus group insights revealed that committing to a 7-day supply would fit into current lifestyles without feeling overwhelmed by drinking one drink per day (see appendix 8). Factors that persuade consumers the most to purchase a beauty drink would be that it is convenient, 100% organic, recyclable packaging and multi-functional. The multi-functional aspect of the beauty drink is highly important, as this is what nutri cosmetics are about, targeting more than one aspect internally and externally.
25
Please see appendix 8 for this section. “The idea behind it being specifically for boosting inner and external would be appealing to so many people.”
BEAUTY FROM WITHIN
“That’s the aim with beauty drinks I think, and they should cater for more than just like skin benefits.” “If it is cold pressed you’ll know exactly what you’re getting because labels usually are honest with ingredients and its targeting both your beauty and body.”
“I believe that the one to one consultation is something I would trust from Space NK because they are very reliable and trained to know a lot.”
RETAILER EXPECTATIONS
“I go into Boots to buy my meal deals and not beauty or tailored drinks, so if anything I would expect it to be in Space NK because that’s what they’re all about.” “Space NK is where I would see this sort of idea because they are considered to be the real skincare gurus. I also feel that people would take it seriously due to the nature of Space NK being the retailer who stock niche and exclusive products.”
“I love the idea of it being explained to me in store if I am honest, there’s nothing really on the high street which offers you that sort of thing if you think about it.”
TAILORED
“I wouldn’t want to just walk in and buy the whole thing myself. If I am paying money for a service where ingredients are raw and scientifically proven then I would expect the consultation to be tailored to my needs and just as premium. “ “It’s so easy for me to walk into a store and pick up something that has great packaging. I think knowing which ingredients do what, especially for a tailored drink would make it just the more enjoyable.” 26
Fig 5
“ Skincare needs to be approached from the inside out as well the outside in.” (Kinnaird, 2016)
Space NK were the most popular choice when respondents were asked from which retailer they shop at the most for their skincare products, 40% of respondents stated Space NK (see appendix 1 chart 8). Space NK are a brand who believe in the beauty from within trend and were one of the first in the UK to introduce the UK population to nutri cosmetics and drinkable skincare.
“ Year on year, Space.NK saw a 5% increase in organic revenue through a 64% increase in organic traffic. ” (Figaro Digital, 2016)
Space NK believe and promote that internal and external wellness is equal as they have been investing into various forms of nutri cosmetics for a few years now. They have dedicated ‘boosting internal wellness’ tabs on their website and dedicated segments in their stores. Space NK was one of the first juice bars in London, but at the time found Nicky Kinnaird realised that London were not ready for a juice bar back then. However, many years on, London is bustling with juice bars and Space NK is soaring high as the majority of their sales come from organic brands. Profits at the firm have jumped 87% to £4.4 million (This is Money, 2015) and sales have increased 14% to £79.8 million (This is Money, 2015). For a high street retailer with a small number of just over 60 stores across the UK, there is no doubt the business is healthy, growing from strength to strength.
28
Fig 6
MISSION STATEMENT Offer a highly edited selection of the finest, most innovative products sourced from all over the world. (Space NK, 2016)
BRAND OBJECTIVES To create a retail environment that communicates a significantly different beauty experience to those already available in department stores, whilst retaining the values of simplicity and sophistication. (Space NK, 2016)
30
STRENGTHS 62 UK locations and 23 US locations. Luxury boutique retailer with niche brands. Well established since 1993. Strong product portfolio consisting of: skincare devices, skincare electronics, make up, skincare, beauty tools, fragrance, haircare, candles, beauty shots and powders. Consumer loyalty through ‘N.dulge’ points card. One point for every £1 spent. Always happy to provide samples and give one to one customer service. Strong online presence through website, beauty bloggers and social media. Multi brand retail ensures all brands under one roof. Make up masterclasses from worldwide artists held in stores to entice consumers. Leading high street retailer that have the biggest range of nutri cosmetics. Staff are knowledgeable about every product stocked. Have a passion for ‘beauty from within’ products. Offer a range of drinkable skincare, organic and scientific. Consumers know what to expect and happy to pay premium prices. Drinkable skincare is available in every store.
31
WEAKNESSES Some of the brands stocked in Space NK have become common and are available through various retailers online and in store, sometimes cheaper. Space NK’s presence in UK and US only, in comparison to competitors who are based in many other countries, this means limited market share. Space NK do not have a mobile app. OPPORTUNITIES In store experiences could be expanded into personalised and tailored market for some of their skincare, health and wellbeing products such as nutri cosmetics. As Space NK currently only operate in the UK and US, they could expand into emerging markets to expand their brand for higher returns although this could come with greater risks. THREATS Consumers find cheaper skincare alternatives. Counterfeit beauty and skincare products sold on eBay and Amazon. Nutri cosmetics are stocked in luxury retailers such as Selfridges, Harvey Nichols and Harrods.
32
Natural/Raw drink
Fig 7
Added vitamins and sugars.
100% scientifically proven extracts.
Preserved drink
High Price
Fig 8
Tailored Service
Ready Made On Shelf
Low Price
33
The current UK drinkable skincare market was analysed on two different positioning maps. This enabled a thorough understanding of where the current gaps are in the various segments of the drinkable market in highlight of price, organic, scientific, preserved and ready to drink. It also helped identify where Space NK’s drink would fit into the market upon launch. Fig 1 considered various drinks from low to high price and it was evident that there are a vast array of options for consumers. An opportunity was identified for a drink that would combine both scientifically proven and organic elements. This would fit into Space NK’s branding for offering an innovative service for the health conscious consumer. Fig 2 focused on the price ranges of current ready to drink beverages and whether they were offered with a tailored service. As shown in the map, all current drinkables are ready made to pick up off the shelf and consumers are not being educated or advised on which is best for them. Although brand, Skinade is the ultimate high end of the price scale, they only offer their collagen shots online. Both maps displayed that the most scientific drinkables are towards the higher priced category and the most natural/organic drinkables are ‘affordable’ mid-price range. A clear opportunity in the market was spotted for a premium priced drink was that will combine science and organic along with a tailored service. As giving consumers expert advice and innovative products is Space NK’s speciality this will complement their branding and provide consumers with exclusivity to Space NK.
34
Fig 9 Drinkable Skincare Available on the Market
Price
£2.79 per 250ml.
Manufacturing
UK
Stockists
£12.95 per 500ml.
£38 per 240ml.
Start from £99 for 30day supply.
Spain
UK
UK
UK
Ocado.
Selfridges.
Space NK & Harvey Nichols.
Space NK, Urban Outfitters, Selfridges & Boots.
Skinade website only.
Fun bright packaging, however may risk not being taken as an effective beauty solution.
Uses fruit peels for extracts and taste. Various ingredients such as, vitamins & zinc.
Supermarket stockist does not reflect the efficacy of product. Collagen based only. Can’t see contents of liquid.
One fruit flavour per bottle. Only available to purchase in Selfridges. Not online. Can’t see contents of liquid.
‘Lunchtime market’ targeted at meal deal consumers.
‘On the go’ female who seeks a fruit based beauty drink.
Supply Options
None. It is a single drink, to be consumed as a beverage.
Tailored or Ready To Drink
Gluten, dairy, lactose free?
Strengths
Weaknesses
Target Market
£2.99 per 250ml.
Scientifically proven, Premium packaging. Wide range of beauty supplements available. Transparent labelling.
Pure collagen. Brand has experts who have research and science to back up product. Fruit extracts in shots.
Can be considered expensive.
Collagen based only. Cannot buy as individual shots. Not available to buy on the market. Expensive for mass market.
Conscious consumers, who lead a healthy and fitness lifestyle - male and females.
Females who seek scientific high quality beauty supplements.
Females who want collagen specifically for long periods. Females seeking anti-ageing benefits.
None. It is a single drink, to be consumed as a beverage.
None. 2 tablespoons per day required.
None. 2 tablespoons per day required.
Only 30, 60 & 90-day options available.
RTD
RTD
RTD
RTD
RTD - order online only
Yes.
Yes.
Yes.
Yes.
Yes.
35
Packaging reflects ‘100% organic’ element. Various plant extracts available. Transparent branding. Packaging looks medicinal - does not represent beauty or skin benefits. Not flavoured with fruits or veg.
As the competitor chart displays a variety of competitors from low price to high price, it is important to consider where the opportunity is. As shown in the chart, all the competitors are in the beauty beverage market however; their target markets are very different. Bella Berry launched in 2013, one of the cheapest on the market and they offer a fruit based drink with added collagen for the lunchtime consumer. In comparison, Skinade, a pure collagen based company who offer this ingredient in shots as an effective beauty solution starting from a 30-day supply. The issue here is that, the cheaper the drink, the less transparent it is. On the lower end of the scale, it does not state how much of the skin boosting ingredient is in the drink; marketing techniques are applied whereby the packaging will display ‘with added collagen’. Even comparing the packaging, the low priced drinks have a more ‘bright and fun’ approach whereas the more premium the drinks get, the packaging starts to reflect effective beauty solutions.
36
Majority of Space NK sales are from the organic brands they stock so they could introduce their own range of drinkable skincare that offers a highly knowledgable tailored service.
Space NK could introduce concessions in luxury department stores such as Harrods or Selfridges to increase brand awareness and sales. A mobile phone app can be implemented on smart phone devices for Space NK to increase sales through multi channel retailing.
Offer exclusive ‘beauty shots’ with the organic drinkable range to provide consumers with a ‘premium’ service.
-
As well as targeting the existing consumers, the organic drinkable skincare range would bring in new consumers as it will be stocked in Harvey Nichols Space NK concessions aswell.
The drinkable range could be introduced into Space NK’s US stores.
Space NK could consider targeting men for drinkable skincare.
38
Fig 10
1 1:1 skincare consultation
2 CHOOSE 7 DAY SUPPLY 100% Vegetable Juice
3 CHOOSE 7 DAY SUPPLY
250ml
Skin Boosting Ingredients 10ml
Carrots Almonds Apple Ginger Wheat Grass, Spinach, Cucumber, Celery, Pear, Parsley & Lemon Carrots Beetroot Lemon Apple
Q10
Hyaluronic
Resveratrol
Biotin
The proposed concept would offer consumers a walk in service into any Space NK store and firstly have a one to one consultation. The Skin Deep representative will ask a series of questions on the consumer’s lifestyle and skincare type. After the consumer has been given information on the cold pressed juice ingredients, they would choose a 7-day supply from three base flavours. The juice would be bottled, labelled and manufactured by England based company ‘The Juice Executive’ - who offer 100% cold pressed juice and can churn large quantities in 24-48 hours for retailers. The juice has been approved by The Soil Association, which also provides the consumer with brand transparency. The three base flavours are split into three categories as follows: energy, detox and radiance. The next step for the consumer is to be explained which skin-boosting ingredient is most beneficial to them. Again, another 7-day supply of any skin-boosting shot, the juice and shot options may be mix and matched. 39
Biotin
Q10
Regulates blood. Promotes healthy skin, hair and nails. Supports metabolism. Absorbs well for skin. Stronger nails. Healthier skin.
Energizes skin. Repairs skin cells. Protects from sun exposure. Produces 95% body’s energy. Improves elasticity and firmness. Anti Ageing.
Resveratrol
Plant extract. Anti oxidant. Protects skin from pollution and environmental damage. Reduces cell damage. Improves collagen.
Hyaluronic
Softer, smoother and plumper skin. Retains moisture. Strengthens skin barrier. Reduces inflammation. Penetrates dead skin cell layers.
The four skin boosting ingredients that will be available are shown above. From thorough research, these four ingredients are the most effective and popular choices within the nutri cosmetic industry. They all have different skin boosting elements and this creates USP for Skin Deep. With the option of four, it allows consumers to understand each one individually without being overwhelmed by choice. The recommended daily dose is 10ml and this is what will be available for the consumer in a small bottle to take with their 250ml organic juice. Data from the primary research survey revealed that on a scale of 1 being not interested and 10 being very interested, how interested would they be on learning more about these ingredients and 69% rated 8, 9 or 10 (see appendix chart 12). *Results mentioned have been combined to a total of 69% out of 300 respondents from rating scale of 8, 9 and 10.
40
Fig 11
The ingredients would go under a process called HPP – high pressure processing. The process means no heat is exposed to the ingredients and are pressed under high pressure at very cold temperate. Fruit and vegetable bacteria will be killed off ensuring no yeast or moulding. Yeast is where the juice splits, the bottom half would be lumpy, the top would usually be watery, and this is what HPP would prevent. HPP also maintains the colour, texture and taste of the ingredients ensuring a vibrant, smooth and refreshing result. This extends the shelf life to 30 days as opposed to extracts without HPP, which would only have a 3-day shelf life. This is an extremely crucial factor for Space NK and the consumer to ensure no wastage and that the consumer can be rest assured the product will maintain fresh and organic taste without the implication that it will not suitable after a couple of days like many cold pressed juices are.
42
Variety of flavours Skin boosting elixirs Personalised to consumer Easy to use Sourced in UK High quality ingredients
Transparent Health & skin enhancing Effective Passionate Expertise Honest Innovative BY
Recyclable packaging 100% organic Suitable for Vegetarians
High performance Not harmful to skin or body Full of nutrients & vitamins Convenience Boost inner & outer wellness
43
RESVERATROL C14H12O3
HYALURONIC (C14H21NO11)n
Fig 12
44
Fig 13
DEMOGRAPHIC Space NK target females predominantly from the age of 20 to 60+. As they offer a vast range of premium products, it is no doubt the consumer who shops at Space NK is health conscious and values their internal body just as much as the external. Space NK are a serious contender for the skincare industry, with hundreds of niche and exclusive brands, the consumer knows what to expect when they walk into a store. However, the target consumer for Skin Deep would be female millennials. SOCIO ECONOMIC Space NK have had huge success over the past few years, recently becoming one of the leading skincare specialist on the high street. With their multi brand retailing under one roof, the consumer is searching for a premium purchase. The targeted consumer would have a full time job, disposable income and live in an urbanised area. The consumer likes to maintain her appearance and open to try new products. She is health conscious and spends her money considerably when it comes to internal and external wellbeing. GEOGRAPHIC Skin Deep’s consumer would ideally live where Space NK was 20 minutes or less away. The female consumer would like to visit Space NK on a monthly basis and understands what Space NK and Skin Deep have to offer. PSYCHOGRAPHIC The consumer for Skin Deep would ideally be experimental, modern, healthy, fit and value their internal and external wellbeing, especially for their skincare. Their personality traits would include being a smart skincare lover, shops both online and in store, watches beauty bloggers, seeks convenient, transparent and multi-functional products. The consumer would prefer being explained what’s beneficial to them in a one to one consultation. 46
THREAT OF SUBSTITUTES For Space NK introducing Skin Deep as their own range of drinkable skincare, the threat of substitutes is low to medium. Consumers can opt for cheaper alternatives even if the efficacy of substitutes is low. Although no other brand offers mix and match tailored service for drinkables, this proves a unique selling point for Skin Deep. If consumers disposable income was to decrease, this could affect Skin Deep and consumers may trade down. Space NK would need to portray the internal and external benefits of Skin Deep to allow consumers to understand the exclusive benefits in comparison to substitutes. Alternative brands in the perceptual map and competitor analysis do not offer cold pressed juice with beauty shots; thus allowing Skin Deep to remain exclusive to Space NK and the drinkable skincare market. THREAT OF ENTRY COMPETITORS As Space NK are already in the drinkable skincare market, it is vital to consider potential threats in the market. No other high street retailer, such as Boots have introduced their own range of drinkable skincare; this gives Space NK a USP, as they are premium skincare specialists. Retailers such as Harrods, Selfridges and Harvey Nichols stock the same drinkable skincare brands as Space NK, so potentially they also could introduce their own drinkable ranges in the future and this is considered a medium risk. As these department stores have already established drinkable skincare in their stores, they understand the consumer demand. This may prove some difficulty for Space NK’s target market, as larger department stores have more footfall than Space NK on a daily basis. Independent drinkable skincare brands would also find it extremely difficult to gain exclusive access to premium stockists, and they would require very high capital to break even. However, due to Space NK holding a skincare specialist reputation, this can influence sales and gain an instant consumer base with existing brand recognition and loyalty. 47
COMPETITOR RIVALRY There are many drinkable skincare brands available on the market, however there is lack of awareness surrounding them. Primary research from survey and focus groups displayed that no one had heard of any other drinkable brand. There is low awareness surrounding brands on the perceptual map as they have entered the market as independent brands. However, as Skin Deep is introduced as a new product for Space NK, it will be exposed to their existing and new consumers. With Space NK being renowned for their expertise skincare knowledge and with beauty bloggers, Skin Deep can penetrate the drinkables market with an existing, specialist and reputable brand. POWER OF BUYER Drinkable skincare brands that offer innovation and high quality in equal measure tend to build a stronger consumer base than cheaper alternatives. Consumers are being more careful about the brands they buy into, hoping for transparency they now seek ingredients in their purest form. Consumers have questioned brands that offer drinkable skincare in supermarkets about the efficacy and transparency. Skin Deep holds a strong position in the market due to its exclusivity in Space NK, transparent branding as well as internal and external attributes. Skin Deep’s retail selling price of £50 is justified through being niche, offering high quality ingredients and being desirable by the target consumer. If Skin Deep retail selling price was to increase, then the target consumer may reconsider their purchasing decision but at the same time, they wouldn’t find a substitute that offers something similar. POWER OF SUPPLIER Due to the market of juice suppliers being saturated, the supplier does not jeopardise Skin Deep’s manufacturing, as turnaround time for bulk cold pressed juices is 24-48 hours. Juice that is 100% cold pressed naturally provides fresh and great taste, it doesn’t need to be altered. Space NK can substitute for another supplier very quickly and hold power over the supplier as the power of supplier is low. 48
Fig 14
51
To increase Space NK’s sales by £1.8m by the end of year one. To increase the global ready to drink beauty beverages market to £15m by 2019 (currently predicted £10.6m). To increase Europe’s market share by 5% by the end of year three (currently second largest market share at 38.30%).
52
In the first year of launch, 36 out of 62 Space NK stores will be targeted to reduce the risk of not being able to sell Skin Deep successfully in every store within the first year. These stores have been chosen carefully considering their city locations and larger millennial demographics than smaller towns they are as following: Nottingham, Manchester, Liverpool, Leeds, Bristol and Belfast. Alongside these city stores, all 25 London stores will stock the Skin Deep range, as London has a large female millennial demographic and consumer awareness surrounding drinkable skincare. The 36 stores will also include Space NK concessions in the following Harvey Nichols stores: Knightsbridge, Bristol, Dublin, Birmingham & Edinburgh. Harvey Nichols have a larger footfall in their stores in comparison to Space NK alongside a wider audience reach. Therefore, for those consumers who may just be browsing or who don’t actively seek or know about drinkable skincare, have a high chance of potentially becoming aware of Skin Deep and be interested in it. In all 36 stores, all three cold pressed juice flavours will be stocked along with four beauty shots and all stores will be equipped with a refrigerator to keep the juices ready to drink, cold and fresh. To ensure that year one is a success, suitable communication strategies will be implemented to ensure Skin Deep is well recognised and established. A launch event will be held in all the Harvey Nichols stores to increase brand awareness due to the wider audience they attract. Cities such as Manchester, Liverpool and Belfast will also be holding a launch event alongside Space NK in Hans Crescent, which is outside Harrods Cosmetic Hall in London. This location was specifically chosen as the store is very large and most importantly the target audience would be in a prime location due the skincare and cosmetic hall in Harrods opposite Space NK. 53
In the first 6 months of year two, Skin Deep’s initial range of three cold-pressed juice flavours and four beauty shots will be implemented into the remaining 26 stores around the UK. Although by this time majority of target consumers will have heard about the range, suitable communication strategies will be employed to raise product awareness for the remaining stores. Year two will focus on diversifying the Skin Deep range to increase product interest and give consumers a bigger variety. Two new cold pressed juice flavours and two new beauty vitamin shots will be added to Skin Deep and these will be implemented into all stores at the same time during the second half of year two. As year one will focus solely on 100% vegetable extracts, year two would focus on launching fruit based and alkalising powder extracts. This would give Skin Deep exclusivity, as the range would exemplify high quality and a wider range of pure ingredients. The flavours will consider consumer opinion in the first year to develop the new products for year two and will be explored through in-store surveys and reviews. As Space NK currently do not have a phone app, this will be introduced once the Skin Deep range has been implemented into all stores. The development of the phone app will take place in year one, ready for launch in year two on smart phone devices. The app will promote the Skin Deep range, pushing the message that consumers should visit their local store to get their tailored supply.
Year three will include the live launch of Skin Deep on Space NK’s website and phone app. The aim is to launch Skin Deep on multiple platforms for Space NK to increase sales and brand awareness. Skin Deep tailored service will be available through a live consultant chat service. The consultant will ask a series of questions and when the consultant has gained sufficient amount of information about the consumer, the supply will be added to the consumers check out bag. Not only this, there will also be a pick up service in store where consumers can pick up their supplies in store once payment is complete online. 54
To increase ‘Space NK’ Instagram followers to 200,000 by the end of year one. To have 50,000 Instagram followers on ‘Skin Deep’ account by the end of year one. To have 10,000 ‘#skindeep’ hashtag mentions on Instagram by the end of year one. To have 1% of each beauty bloggers total social media followers to purchase Skin Deep.
56
“ Thanks to social media and influencers, information is now a click away making younger consumers more knowledgeable about skin care and products available.� (Spruance, 2015)
Fig 15
57
Collaborating with influential beauty bloggers are going to impact a vast amount on the success of Skin Deep. Primary research data found that 72% of respondents watch beauty bloggers that influence their purchases (see appendix chart 10). Utilising beauty bloggers to promote #skindeep through hashtags and their social media accounts can bring in the female millennial consumer and entice their buying behaviour. With hundreds and thousands of likes, shares and comments, some bloggers even gaining numbers in six figures; it is no doubt that Skin Deep will benefit from this exposure. The beauty bloggers that will be collaborating with Space NK for Skin Deep are all female millennials; they are based in the UK and are the top choices for influencing consumers. Consumers have built trust and emotional connections with bloggers through watching their reviews online, with some even stating they only purchase products if they have heard a beauty blogger has tried it. The power blogging has on consumers buying behaviours and their mind-sets is phenomenal. Space NK will provide the bloggers with a year supply of Skin Deep to be featured on their social media through the #skindeep hashtag and monthly videos. One video can gain between 100,000 to 1 million views per beauty blogger. Bloggers will also host giveaways and competitions on their social media accounts where 10 lucky winners per blogger will get an invite to meet the blogger at the launch event for Skin Deep. They will also receive one 7 day supply of their choice. Ultimately, Skin Deep has to build brand awareness, boost their social and search visibility and increase revenue for Space NK to ensure a growing future.
58
(C14H21NO11)n
RESVERATROL (C23H12NO6)n
COLD PRESSED. 100% FRESH. EXCLUSIVE ELIXIRS. PERSONALISED TO YOU.
Fig 16 This mock up was created to showcase how Space NK would communicate Skin Deep and promote it to consumers. As the product range will only be available in store for the first two years, it is important to direct their online traffic to the new range.
59
Fig 17
Fig 18
Skin Deep will be promoted on all Space NK’s social media platforms through the hashtag #skindeep. As shown in the mock ups created, Space NK will utilise Skin Deep branding packaging and friendly language to engage with consumers.
60
Fig 20
Fig 19
“41% of Millennials say their purchases are initially influenced by something featured in a printed magazine.� (Bolton, PR Manager for Hearst, Harpers Bazaar. 2016)
Print advertising is key for Space NK as their target consumer are female millennials, they happen to be the leading demographic in reading and purchasing magazines. Vogue and Harpers Bazaar would be the most beneficial for Skin Deep as it is a premium product, and the type of content these magazines feature are premium to high end. Conde Nast found in a 2015 study that 61% of readers bought goods advertised in Vogue and 72% of readers are female millennials (Conde Nast, 2015). This demonstrates the huge influence magazine advertising has on readers and how it can increase awareness and sales within a short amount of time. Upon the launch of Skin Deep, Vogue will feature a full page advertisement and in the second month it will go to 1/3 of a page. 61
Fig 21 COLD PRESSED. 100% FRESH. EXCLUSIVE ELIXIRS. PERSONALISED TO YOU.
The launch event would be held at various city locations as mentioned in the marketing strategy. Beauty bloggers will attend the Skin Deep launch along with 10 lucky winners who will win a 7 day supply from the bloggers social media competitions. The event will consist of tasters of the juices and beauty shots with competitions on the night. It will be a 3 hour event held around lunchtime on a Saturday to ensure more consumers can attend. During the event there will be more promotions and a chance for beauty blogger viewers to meet the bloggers. The hashtag #skindeep will be utilised across social media to raise awareness and create a buzz. This will allow Skin Deep to be accessed through hashtags and for consumers to keep up to date with what is going on
62
PRODUCT As Space NK currently do not offer their own range of drinkable skincare, it is important to consider that the Skin Deep range is useful, convenient and multi-functional for the target consumers. Transparency must be communicated to the consumer along with the internal and external benefits they will be receiving. The branding for Skin Deep is minimalistic and effective, representing the sophisticated branding Space NK have throughout their stores and website. PLACE In the first year, Skin Deep will be available in major cities, Harvey Nichols concessions and across all of London. As Skin Deep is exclusively a product extension for Space NK, it will only be available at Space NK locations to increase brand awareness and footfall. The product will be sourced and manufactured in the UK ensuring 100% great quality and fresh taste. Space NK do not need to worry about power of supplier as there are many cold pressed factories in the UK that can provide juice to retailers in 24-48 hours. PRICE With Space NK’s existing premium prices, they have managed to increase profits by 87% in the year 2014 to 2015 (This Is Money, 2015). As the consumer for Space NK and Skin Deep seeks premium skincare and internal wellbeing products, the £50 price margin is suitable for the target consumer. Primary research data suggested this was a consumer driven price point for Space NK (see appendix 1 chart 7 and appendix 8). In comparison to competitors, no one offers anything similar or the same. The consumer will be educated on the ingredients, which then they can select a mixture of juice and beauty shots they prefer at no added charge. .
63
PROMOTION Consumers can enjoy Skin Deep whilst collecting points on the Space NK ‘N Dulge’ loyalty card scheme. The majority of skincare brands provide beauty bloggers with promotional codes to use at checkouts, but as Skin Deep won’t be on the Space NK website until year three, beauty blogger viewers will get a special code emailed to them. Once they follow Space NK’s Instagram and Twitter accounts, they can bring their promo code to store via their smart phones or as print out documents. PEOPLE As Space NK are a brand that cater for females who are interested in high quality and premium skincare, it is important for Space NK to continue delivering their expertise knowledge for Skin Deep. As they will be providing consumers with one to one consultations, ingredient information and advising them on what combination of drink and beauty shot is most beneficial, they must ensure they are friendly, knowledgeable and welcoming. PROCESS Skin Deep’s whole experience from start to end is based around trust and brand image, they must ensure the consumer is the focus and confirm they are being guided the whole way through. Staff must be attentive and make the consumer feel special. Consumers will receive the best service from the moment they walk into and out of the store to increase brand loyalty and return purchases. PHYSICAL ENVIRONMENT Space NK stores are bright and welcoming. Every store has a clean, tidy and fresh atmosphere where consumers can thoroughly enjoy browsing products without overcrowding. The stores represent what they believe in which is consistency and smart skincare. 64
Fig 22
Fig 23
Item
Unit
Cost per unit
Total cost per item
Juice, Label & Bottle.
966,000
£
2.20
£
2,125,200
Beauty Shot Bottle
966,000
£
0.17
£
164,220
Beauty Shot Liquid
966,000
£
0.52
£
502,320
£
2,791,740
Total direct cost
Fig 24
7 x per bottle & beauty shot (week supply)
Per bottle and beauty shot £
2.89 £
Retail Selling Price
20.23
£
VAT AT 20%
50.00
£
40.00
Profit per 7 day supply £
19.77
£50 RSP is based on primary research, please see appendix 1 chart 7, appendix 8 and 11. 20.23 variable 367196 fixed
Concept
Skin Deep by Space NK
Penetration
Adult Population
65,000,000
Skin Deep by Space NK
Millennials M/F 35 13,800,000
50% OF MILLENNIALS
18-
Trial
Target Audience: Female Millennials 1835
50% of target audience interested in drinkable skincare
6,900,000
3,450,000
Year 1 volume
RSP Per Pack
After 20% VAT
TOTAL VALUE
138,000
£50
£40
£5,520,000
Fig 25 67
Potential Trialists
Repeat Visits & Purchases
Volume
Average number of Potential Total Market 7 day supplies Volume purchased
345,000
4
Assuming 10% of target audience will trial
Per Annum Per Person
1,380,000
Awareness
Year 1 Volumes
138,000 Assuming 10% awareness
Fig 26 YEAR ONE YEAR TWO YEAR THREE Figures are multiplied by store locations that the product will Marketing Budget is based on 6% of Space Marketing Budget is based on 20% of year Marketing Budget is based on 3% of year be in. Figures are rounded to nearest decimal. NK's profit £4.4 million (2015) TOTAL one profit. two profit. MARKETING BUDGET: £264,000 TOTAL MARKETING BUDGET: £377,770 TOTAL MARKETING BUDGET: £123,839
Some marketing techniques repeated due to product diversification.
All costs include VAT. Vogue Magazine 1 FULL page insertion on launch month & new products in year two.
£
122,702 £
Vogue Magazine. 1/3 of a page insertion for one magazine issue in second month.
£
49,058
Harpers Bazaar. 1/3 of a page insertion for one magazine issue in third month.
£
54,745
£
-
£
49,058 £
49,058
£
54,745 £
54,745
36 stores
STORES PER YEAR
122,702
62 stores
Instore POS (55x150cm) @ £21.18. 1 per store.
£
762 £
Promotional flyers for subscription box for 2 months (200,000 subscribers per month requires 400,000 A6 flyers)
£
2,880 £
2 billboard spaces in one city for 4 weeks = £640
£
2 billboard prints per 2 spaces in 1 city @ £65.73
62 stores 1,313 £
1,313
2,880
£
-
£
79,360
£
-
£
4,732 £
8,150
£
-
44 custom invites for bloggers and 40 winning viewers.
£
36
-
£
-
188 T shirts @ £5.99 each. (4 sales assistant per store on launch, 4 bloggers & 40 winning viewers).
£
1,126 £
£
-
25000 promotional flyers to give with Space NK's online orders.
£
90 £
90
£
90
Window Decals £3.49 per decal (49 x 32.1 cm) 8 per store. 1 new per week for first 2 months.
£
1,005 £
1,731
£
-
Total Budget Used
£
260,176 £
320,029
£
105,206
Budget Remaining
£
3,824
57,741
£
18,633
Total Marketing Budget
£
264,000 £
377,770 £
123,839
23,040
68
£
£
-
Please refer to appendix 10 to see links for finance.
Year 1 SensitivityPROFIT AND LOSS FORECAST
OSS FORECAST
Fig 27
+ 20% Forecast
YEAR 1-20% Forecast Forecast
Year 1 Sensitivity
+ 20% YEAR 2 Forecast Forecast
Year 2 Sensitivity YEAR -20% + 20% 1 Forecast Forecast
Year 1 Sensitivity YEAR -20% + 20% 2 Forecast Forecast Forecast
Year 2 Sensitivity
+YEAR 20%-20% 3 Forecast Forecast Forecast
Year 3 Sensitivity -20% + 20% YEAR 2 Forecast Forecast Forecast
Y
YEAR-20% 3+ 20% Forecast Forecast Forecast
6,624,000 £
£
Total Sales 5,520,000 4,416,000 £ £
6,624,000 9,506,320£ £
5,520,000 ££ 11,407,584 4,416,000
9,506,320 6,624,000££ £ 7,605,056
11,407,584 13,492,640 4,416,000 ££
£
7,605,056 16,191,168 9,506,320 £ £ £
13,492,64 10,794 11,40
1,740 sts (e.g.£product costs) 3,350,088 £
£
Direct costs 2,791,740 2,233,392 £ (e.g.£product costs) 3,350,088 3,956,240£ £
2,791,740 ££ 4,747,488 2,233,392
3,956,240 3,350,088££ £ 3,164,992
4,747,488 5,808,580 2,233,392 ££
£
3,164,992 6,970,296 3,956,240 £ £ £
5,808,58 4,646 4,74
8,260 Gross Profit £
£
Gross Profit 2,728,260 2,182,608 £ £
2,728,260 ££ 6,660,096 2,182,608
5,550,080 3,273,912££ £ 4,440,064
6,660,096 7,684,060 2,182,608 ££
£
4,440,064 9,220,872 5,550,080 £ £ £
7,684,06 6,147 6,66
0,000 Total Sales £
3,273,912 £
oss Profit Margin 49%
49% 49%
5,000 f training£ one day.
5,000 £
£
s (Year 1 - 36 stores & Year 2 7,020 £ 7,020 £ 26 stores)
£
5,000 ating Mobile £ App
95,000 £
£
£-
£
p Maintenance £ Salary
3,273,912 5,550,080£ £
49% 58%
Gross Profit Margin 49% 58%
Staff5,000 training 5,000 £ £ one day.
58% 49% 58%
58% 57%49%
58% 57%58%
57%57% 58%
5,000 5,000£ £
5,000 5,000 £££
5,000 5,000£ £ 5,000
5,000 5,0005,000 ££
£
5,000 5,000 5,000 £ £ £
5,005
In Store Fridges (Year 1 - 36 stores & Year 2 7,020 7,020 £ £ 7,020 5,070£ £ 26 stores)
5,070 7,020 £££
5,070 7,020£ £ 5,070
5,070 - 7,020 ££
£
5,070- 5,070 £ £ £
-
95,000 ££
££ £ -95,000
- - 95,000 ££
£
Creating App 95,000 95,000 £ Mobile £
95,000- £ £
2 x-App Maintenance Salary ££
60,000 £ £
60,000 -
-
- £- £ £
-
££
60,000- ££ £ 60,000
60,000 60,000 £-£
£
60,000 60,000 60,000 £ £ £
60,00 606
Marketing 0,176 £ Costs
260,176 £
£
Marketing 260,176 260,176 £ £ Costs
260,176 320,029£ £
320,029 260,176 ££
320,029 260,176£ £ 320,029
320,029 105,206 260,176 ££
£
320,029 105,206 320,029 £ £ £
105,20 105 32
7,196 otal overheads £
367,196 £
£
Total 367,196 367,196 £ overheads £
367,196 390,099£ £
390,099 367,196 ££
390,099 367,196£ £ 390,099
390,099 170,206 367,196 ££
£
390,099 170,206 390,099 £ £ £
170,20 170 39
1,064 ross profit £ less overheads) 2,982,892 £
£
Net profit (gross 2,361,064 1,866,196 £ profit £ less overheads) 2,982,892 5,159,981£ £
2,361,064 ££ 6,269,997 1,866,196
5,159,981 2,982,892££ £ 4,049,965
6,269,997 7,513,854 1,866,196 ££
£
4,049,965 9,050,666 5,159,981 £ £ £
7,513,85 5,977 6,26
net profit margin (net profit 45% by total sales x 100)
Calculate your net profit margin (net profit 43% 42% 45% 54% divided by total sales x 100)
Forecast
Forecast Forecast
Forecast Forecast
42% 43% 55%
54% 45% 53%
55% 56%42%
53% 56%54%
56%55% 55%
Forecast Forecast
Forecast Forecast Forecast
Forecast Forecast Forecast
Forecast Forecast Forecast
Forecast Forecast Forecast
2,212 ing 20%£corporation tax) 596,578 £
£
Tax (assuming tax) 472,212 373,238 £ 20%£corporation596,578 1,031,996£ £
472,212 ££ 1,253,998 373,238
1,031,996 596,578££ £ 809,992
1,253,998 1,502,770 373,238 ££
£
809,992 1,810,132 1,031,996 £ £ £
1,502,77 1,195 1,25
after tax (assume 20% 8,852 £ 2,386,314 £ orporation tax)
£
Net Profit after tax (assume 20% 1,888,852 1,492,958 £ £ 2,386,314 4,127,985£ £ corporation tax)
1,888,852 ££ 5,015,999 1,492,958
4,127,985 2,386,314££ £ 3,239,973
5,015,999 6,011,084 1,492,958 ££
£
3,239,973 7,240,534 4,127,985 £ £ £
6,011,08 4,781 5,01
69
1 Sensitivity AND LOSS FORECASTPROFIT ANDYear LOSS FORECAST
1 st
+ 20% YEAR 1 Forecast Forecast
5,520,000 Total £ £ Sales
Year 1 Sensitivity
-20% YEAR + 20% 1 Forecast Forecast Forecast
6,624,000 5,520,000 £ £ £ Sales Total
Year 2 Sensitivity Year 1 Sensitivity
Year 1 Sensitivity
YEAR -20% YEAR + 20% 1 2 Forecast Forecast
++-20% 20% YEAR 20% 2 Forecast Forecast Forecast
Year 2 Sensitivity
-20% YEAR + 20% -20% 2 Forecast Forecast Forecast Forecast
Year 3 Sensitivity Year 2 Sensitivity
Year 2 Sensitivity
YEAR 3 2 +-20% 20% YEAR Forecast Forecast Forecast Forecast
+-20% 20% YEAR + 20% 3 Forecast Forecast Forecast
Year 3 Sensitivity
YEAR +-20% -20% 20% 3 Forecast Forecast Forecast
+YEAR 20% -20%3 Forecast Forecas
4,416,000 5,520,000 6,624,000 £ ££
9,506,320 4,416,000££ £ 5,520,000 6,624,000
11,407,584 9,506,320 6,624,000 4,416,000 £ ££
7,605,056 £ ££ £ 11,407,584 9,506,320 4,416,000
13,492,640 11,407,584 7,605,056 9,506,320££ £
16,191,168 7,605,056 13,492,640 11,407,584££ £
10,794,112 13,492,640 16,191,168 7,605,056 £ £
16, 10 13
2,791,740 3,350,088 2,233,392 Direct osts) costs (e.g. £ £ product costs) 2,791,740 £ £ product costs) 2,791,740 3,350,088 Direct costs£ (e.g. £ ££
3,956,240 2,233,392££ £ 2,791,740 3,350,088
4,747,488 3,956,240 3,350,088 2,233,392 £ ££
3,164,992 £ ££ £ 4,747,488 3,956,240 2,233,392
5,808,580 3,164,992 4,747,488 3,956,240££ £
6,970,296 3,164,992 5,808,580 4,747,488££ £
4,646,864 5,808,580 6,970,296 3,164,992 £ £
6,45
5,550,080 2,182,608££ £ 2,728,260 3,273,912
6,660,096 5,550,080 3,273,912 2,182,608 £ ££
4,440,064 £ ££ £ 6,660,096 5,550,080 2,182,608
7,684,060 4,440,064 6,660,096 5,550,080££ £
9,220,872 4,440,064 7,684,060 6,660,096££ £
6,147,248 7,684,060 9,220,872 4,440,064 £ £
9,67
2,728,260 Gross £ £ Profit
3,273,912 2,728,260 £ £ £ Profit Gross
49% Gross Profit Margin49%
2,182,608 2,728,260 3,273,912 £ ££
49% 49% 49% Gross Profit Margin
5,000 Staff training £ £ one day.
5,000 5,000 £ £ £ one day. Staff training
58% 49% 49%
58% 58% 49%
58% 58% 58% 49%
57% 58% 58%58%
57% 58% 58%
57% 57% 58%
57% 57%
5,000 5,000 5,000 £ ££
5,000 5,000££ £ 5,000
5,000 5,000 5,000 £ ££
5,000 £ ££ £ 5,000 5,000 5,000
5,000 5,000 5,000££ £
5,000 5,000 5,000££ £
5,000 £ £ 5,000
es & Fridges Year 2(Year 1 - 36 stores In Store & Year Fridges 2 - (Year 1 - 36 stores & Year 2 7,020 £ £ 7,020 7,020 £ ££ 7,020 £ ££ 7,020 7,020 26 stores) 26 stores)
5,070 7,020 7,020££ £
5,070 7,020 £ ££ 5,070
5,070 £ ££ £ 5,070 5,070 7,020
- 5,070££ £ 5,070 5,070
5,070 5,070 ££ £
5,070 -££
95,000 95,000 95,000 £ ££
95,000 95,000 ££ £
- - £ ££ 95,000
- 95,000 -- £ ££ £
-- - ££ £
- - - ££ £
- - - £ ££
60,000 - - ££ £
60,000 60,000 - £ ££
60,000 60,000 60,000-£ ££ £
60,000 60,000 60,000££ £
60,000 60,000 60,000££ £
60,000 £ £ 60,000
95,000 £ Creating£Mobile App
95,000 £ 95,000 £ £Mobile Creating App
ry 2 x App- Maintenance ££ Salary 2 x App - - Maintenance £ ££ Salary
--
££
260,176 Marketing £ £ Costs
260,176 260,176 £ £ £ Costs Marketing
260,176 260,176 260,176 £ ££
320,029 260,176££ £ 260,176
320,029 320,029 260,176 £ ££
320,029 £ ££ £ 320,029 320,029 260,176
105,206 320,029 320,029 320,029££ £
105,206 320,029 320,029££ £
105,206 105,206 320,029 £ £
367,196 Total overheads ££
367,196 367,196 £ overheads ££ Total
367,196 367,196 367,196 £ ££
390,099 367,196££ £ 367,196
390,099 390,099 367,196 £ ££
390,099 £ ££ £ 390,099 390,099 367,196
170,206 390,099 390,099 390,099££ £
170,206 390,099 390,099££ £
170,206 170,206 390,099 £ £
2,361,064 £ 2,982,892 £ 1,866,196 profit rheads) (gross £profit less overheads) 2,361,064 £ £profit 2,361,064 2,982,892 Net profit (gross less overheads) £ ££
5,159,981 1,866,196££ £ 2,361,064 2,982,892
6,269,997 5,159,981 2,982,892 1,866,196 £ ££
4,049,965 £ ££ £ 6,269,997 5,159,981 1,866,196
7,513,854 4,049,965 6,269,997 5,159,981££ £
9,050,666 4,049,965 7,513,854 6,269,997££ £
5,977,042 7,513,854 9,050,666 4,049,965 £ £
(net te your profit net profit margin Calculate (net profit your net profit margin (net profit 45% 42% 43% 43% 45% 00) divided by total sales x 100) divided by total sales x 100)
st
Forecast Forecast
Forecast Forecast Forecast
9,57
54% 43% 45% 42%
55% 45% 42% 54%
53% 55% 54% 42%
56% 53% 55%54%
56% 53% 55%
55% 56% 56% 53%
56% 55% 56%
Forecast Forecast
Forecast Forecast Forecast
Forecast Forecast Forecast Forecast
Forecast Forecast Forecast Forecast
Forecast Forecast Forecast
Forecast Forecast Forecast
Forecast Forecas
472,212 20% 596,578 373,238 on(assuming tax) £ £ corporation 472,212 £ 20% £ £ corporation472,212 596,578 Taxtax) (assuming tax) £ ££
1,031,996 373,238££ £ 472,212 596,578
1,253,998 1,031,996 596,578 373,238 £ ££
809,992 £ ££ £ 1,253,998 1,031,996 373,238
1,502,770 1,253,998 809,992 1,031,996££ £
1,810,132 1,502,770 809,992 1,253,998££ £
1,195,408 1,502,770 1,810,132 809,992 £ £
1,1
et 20% Profit after tax (assume 20% Net Profit after tax (assume 20% 1,888,852 £ £ 2,386,314 1,492,958 1,888,852 £ ££ 1,888,852 2,386,314 £ ££ corporation tax) corporation tax)
4,127,985 1,492,958££ £ 1,888,852 2,386,314
5,015,999 4,127,985 2,386,314 1,492,958 £ ££
3,239,973 £ ££ £ 5,015,999 4,127,985 1,492,958
6,011,084 3,239,973 5,015,999 4,127,985££ £
7,240,534 3,239,973 6,011,084 5,015,999££ £
4,781,634 6,011,084 7,240,534 3,239,973 £ £
7,46
Fig 28
70
Fig 29
£6,000,000
£5,000,000
Sales (£)
£4,000,000
Fixed Costs
£3,000,000
Variable Costs Total Costs Revenue
£2,000,000
£1,000,000
x
£0
25000
50000
75000 Units Sold
71
100000
125000
138000
Fig 30
2017
STRATEGY/COMMUNICATION 3
2018
6
9
KEY:
2017
12
3
6
2019 9
Launch Skin Deep into 36 stores Launch Event Magazine Advertising Feature Skin Deep on Space NK Social Media Platforms Beauty Bloggers Promotion Launch Skin Deep into remaining 26 stores Promote Skin Deep on Website Launch New Juice Flavours and Beauty Shots Start Creating Mobile App Launch Mobile App Offer Skin Deep on Space NK Website Launch Live Consultation Service Billboard Spaces in Cities per launch Offer Pick Up In-store Service
2018
72
2019
12
3
6
9
12
Fig 31
To ensure that Skin Deep is on the path of success, measuring their awareness can be done through various methods. Space NK have Instagram, YouTube and Twitter accounts, the followers for both accounts can be recorded on a monthly basis upon the launch of Skin Deep. With these two social media platforms, the hashtag #skindeep will be monitored through the search bar on all three platforms. It will show how many posts have been uploaded and this can be measured for all three years at any time. As beauty bloggers will be promoting Skin Deep heavily throughout the first year of launch, views on their dedicated Skin Deep video reviews will be counted on a weekly basis. The launch event will also highlight the success of social media through how many people will attend and how many people buy Skin Deep upon the first month of launch. After the launch, Space NK will offer consumers a short survey in store to fill where consumers can say where they heard about Skin Deep and what their experience has been up to date. This will be done after the first 3 months of launch and from then on every 6 months. FUTURE OUTLOOK Future outlook for Skin Deep is to consider launching in the Space NK US stores. This could provide Space NK with global recognition and further expansion. The US millennial population is one of the largest in the world and this can bring in huge returns for the brand. It is also known that the US consumer is happier to spend monÂŹey on trying out new products and services; this can boost brand recognition in the US which ultimately could lead to more stores in city areas and concessions in large department stores in the US.
74
CITATIONS Bolton, B. (2016). The New Language of Luxury: How Millennials are changing the shape of luxury - Hearst UK. [online] Hearst UK. Available at: http://www.hearst.co.uk/news/new-language-luxury-millennials-changing-shape-luxury [Accessed 8 May 2016]. Brody, R. (2015). Ways the nutricosmetics market is maturing. [online] Newhope.com. Available at: http://newhope.com/ beauty/4-ways-nutricosmetics-market-maturing [Accessed 9 Apr. 2016]. Business of Fashion, (2015). Nutricosmetics Promise Beauty From the Inside Out. [online] The Business of Fashion. Available at: http://www.businessoffashion.com/articles/intelligence/nutricosmetics-inside-out-beauty-super-elixir [Accessed 1 Mar. 2016]. Conde Nast, (2015). Vogue - Audience. [online] Condenast. Available at: http://www.condenast.eu/en/portfolio/magazines/ vogue/circulation/ [Accessed 12 Apr. 2016]. Cosmetics Design, (2015). Ready-to-drink beauty is ready to change everything. [online] CosmeticsDesign.com USA. Available at: http://www.cosmeticsdesign.com/Market-Trends/Ready-to-drink-beauty-is-ready-to-change-everything [Accessed 16 Apr. 2016]. FDA, (2005). “Alcohol Free�. [online] Fda.gov. Available at: http://www.fda.gov/Cosmetics/Labeling/Claims/ucm2005201. htm [Accessed 14 Apr. 2016]. Figaro Digital, (2016). Space.NK. [online] Figaro Digital. Available at: http://figarodigital.co.uk/case-study/space-nk/ [Accessed 1 May 2016]. Global Industry Analysts, (2015). Nutricosmetics Market Trends. [online] Strategyr.com. Available at: http://www.strategyr. com/MarketResearch/Nutricosmetics_Market_Trends.asp [Accessed 8 Apr. 2016]. Kinnaird, N. (2016). Space NK | About Us. [online] Spacenk.com. Available at: http://www.spacenk.com/uk/en_GB/aboutdemandware/about-us.html [Accessed 6 May 2016]. Simpson, P. (2015). Ways the nutricosmetics market is maturing. [online] Newhope.com. Available at: http://newhope.com/ beauty/4-ways-nutricosmetics-market-maturing [Accessed 12 Apr. 2016]. Space NK, (2016). Space NK | About Us. [online] Spacenk.com. Available at: http://www.spacenk.com/uk/en_GB/aboutdemandware/about-us.html [Accessed 5 Apr. 2016]. Space NK, (2016). Space NK | Virgile + Partners. [online] Virgileandpartners.com. Available at: https://www. virgileandpartners.com/clients/space-nk [Accessed 3 Apr. 2016].
75
Technavio, (2016). [online] Businesswire.com. Available at: http://www.businesswire.com/news/home/20160118005345/ en/Technavio-Expects-Global-Beauty-Drinks-Market-Surpass [Accessed 18 Apr. 2016]. This Is Money, (2015). Sales at upmarket beauty chain Space NK soar. [online] This is Money. Available at: http://www. thisismoney.co.uk/money/news/article-3215441/Sales-upmarket-beauty-chain-Space-NK-soar-demand-designer-fragrancesface-creams.html [Accessed 8 Apr. 2016]. Transparancy Market, (2015). Rising Demand for Nutricosmetics from Aging Population to Drive Market at 11.50% CAGR by 2020. [online] Transparencymarketresearch.com. Available at: http://www.transparencymarketresearch.com/pressrelease/ nutricosmetics-market.htm [Accessed 11 Apr. 2016]. Varlet, C. (2015). Ready-to-drink beauty is ready to change everything. [online] CosmeticsDesign.com USA. Available at: http://www.cosmeticsdesign.com/Market-Trends/Ready-to-drink-beauty-is-ready-to-change-everything [Accessed 10 Apr. 2016]. Yeomans, (2015). Cosmetic brands facing more pressure on multifunctional credentials. [online] CosmeticsDesign-Europe. com. Available at: http://www.cosmeticsdesign-europe.com/Market-Trends/Cosmetic-brands-facing-more-pressure-onmultifunctional-credentials [Accessed 16 Apr. 2016].
BOOKS Bushko, R. (2002). Future of health technology. Amsterdam: IOS Press. Jones, A. (2006). The Elgar companion to health economics. Cheltenham, UK: Edward Elgar. Miller, R. and Washington, K. (2008). Consumer behaviour 2009. Loganville, Ga.: Richard K. Miller & Associates.
76
LIST OF ILLUSTRATIONS Fig 1. Candids by Jo 2015. CLEAN DETOX 1 DAY MEALPLAN [online] Available at: http://candidsbyjo.com/food/clean-detox-1-day-mealplan/ [Accessed on 4/5/2016] Fig 2. Raw Press, 2015. Office Delivery [online] Available at: http://www.rawpress.co/delivery/#enquiries [Accessed on 01/05/2016] Fig 3. Khatkar, N. (2016) Created on InDesign, 1/4/2016. Fig 4. Hard, J L. 2015. How to Select, Store, and Eat Blueberries [online] Available at: http://food52.com/blog/10744-how-to-select-store-andeat-blueberries [Accessed on 01/05/2016] Fig 5. Panskaya, M. 2016. SPACE NK OPENS NEW BOUTIQUE [online] Available at: http://www.avenuemagazine.com/space-nk-opens-newboutique-in-nolita/ [Accessed on 29/04/2016] Fig 6. Panskaya, M. 2016. SPACE NK OPENS NEW BOUTIQUE [online] Available at: http://www.avenuemagazine.com/space-nk-opens-newboutique-in-nolita/ [Accessed on 29/04/2016] Fig 7. Khatkar, N. (2016) Created on InDesign, 12/4/2016. Fig 8. Khatkar, N. (2016) Created on InDesign, 12/4/2016. Fig 9. Khatkar, N. (2016) Created on InDesign, 1/5/2016. Fig 10. Khatkar, N. (2016) Created on InDesign, 1/5/2016. Fig 11. Owen and Alchemy, 2016. Beyond Organic. [online] Available at: http://owenandalchemy.com/about/ [Accessed on 28/4/2016] Fig 12. Khatkar, N. (2016) Created on Photoshop, 3/5/2016. Fig 13. Fitlista, 2015. 12 Health Benefits Of Avocado That Will Surprise You [online] Available at: http://www.fitlista.com/12-health-benefitsavocado-will-surprise/ [Accessed on 10/05/2016] Fig 14. Panskaya, M. 2016. SPACE NK OPENS NEW BOUTIQUE [online] Available at: http://www.avenuemagazine.com/space-nk-opens-newboutique-in-nolita/ [Accessed on 29/04/2016] Fig 15. Hermans, J. 2016. Top UK Beauty Blogs. [online] Available at: http://www.vuelio.com/uk/social-media-index/top-10-uk-beauty-blogs/ [Accessed on 29/04/2016] Fig 16. Khatkar, N. (2016) Created on Photoshop, 6/5/2016. Fig 17. Khatkar, N. (2016) Screenshot taken of social media account on iPhone 6 then edited on Photoshop. 5/5/2016. Fig 18. Khatkar, N. (2016) Screenshot taken of social media account on iPhone 6 then edited on Photoshop. 5/5/2016. Fig 19. Unfashion. 2016. Adele by Annie Leibovitz for Vogue US March 2016 [online] Available at: http://un-fashion.com/editorials/the-voice/ attachment/adele-by-annie-leibovitz-for-vogue-us-march-2016-1/ [Accessed on 28/4/2016] Fig 20. Wasilak, S. 2016. Kendall Jenner’s Favorite Outfit Just Might Surprise You. [online] Available at: http://www.popsugar.com/fashion/ Kendall-Jenner-Harper-Bazaar-Cover-July-2016-41288748 [Accessed on 28/4/2016] Fig 21. Shen, Amy. 2016. La Vie En Rose Space NK Window [online] Available at: https://uk.pinterest.com/pin/337277459565709700/ [Accessed on 6/5/2016] Fig 22. Artisan Food. 2016. Bluberry pie with fresh fruits [online] Available at: http://artisanfoodphotography.com/blog-bite-on-green/ [Accessed on 1/5/2016] Fig 23. Khatkar, N. (2016) Created on Excel, 13/05/2016. Fig 24. Khatkar, N. (2016) Created on Excel, 13/05/2016. Fig 25. Khatkar, N. (2016) Created on Excel, 13/05/2016. Fig 26. Khatkar, N. (2016) Created on Excel, 13/05/2016. Fig 27. Khatkar, N. (2016) Created on Excel, 13/05/2016. Fig 28. Khatkar, N. (2016) Created on Excel, 13/05/2016. Fig 29. Khatkar, N. (2016) Created on Excel, 13/05/2016. Fig 30. Khatkar, N. (2016) Created on Excel, 13/05/2016. Fig 31. Everything York, 2016. The Juice about Cold Pressed – Melrose Organic [online] Available at: http://www.everythingyork.co.uk/thejuice-about-cold-pressed-melrose-organic/ [Accessed on 09/05/2016]
BIBLIOGRAPHY Arnesen, C. (2014). What’s Drinkable Skincare - Does Drinkable Skin Care Work?. [online] Therapie. Available at: https://www. ilovetherapie.ca/blog/drinkable-skincare/ [Accessed 9 Mar. 2016]. Atwood, T. (2014). [online] Bustle.com. Available at: http://www.bustle.com/articles/47327-drinkable-skincare-faqeverything-you-need-to-know-about-the-latest-beauty-trend [Accessed 7 Apr. 2016]. Baker, S. (2016). My Favorite Drinkable Beauty Skincare Shot - Balanced Babe. [online] Balanced Babe. Available at: http:// balancedbabe.com/my-favorite-drinkable-beauty-skincare-shots/ [Accessed 6 Apr. 2016]. Bolton, B. (2016). The New Language of Luxury: How Millennials are changing the shape of luxury - Hearst UK. [online] Hearst UK. Available at: http://www.hearst.co.uk/news/new-language-luxury-millennials-changing-shape-luxury [Accessed 8 May 2016]. Bouckley, B. (2015). Beauty and that beast of a beverage market…Bella Berry targets UK launch. [online] BeverageDaily.com. Available at: http://www.beveragedaily.com/Manufacturers/Beauty-and-that-beast-of-a-beverage-market-Bella-Berry-targetsUK-launch [Accessed 4 Apr. 2016]. Brody, R. (2015). Ways the nutricosmetics market is maturing. [online] Newhope.com. Available at: http://newhope.com/ beauty/4-ways-nutricosmetics-market-maturing [Accessed 9 Apr. 2016]. Conde Nast, (2015). Vogue - Audience. [online] Condenast. Available at: http://www.condenast.eu/en/portfolio/magazines/ vogue/circulation/ [Accessed 12 Apr. 2016]. Conville, N. (2016). Cold-pressed juice: the new trend. [online] Bodyandsoul.com.au. Available at: http://www.bodyandsoul. com.au/nutrition/nutrition+tips/cold+pressed+juice+the+new+trend,25495 [Accessed 8 Apr. 2016]. Cosmetics Design, (2015). Ready-to-drink beauty is ready to change everything. [online] CosmeticsDesign.com USA. Available at: http://www.cosmeticsdesign.com/Market-Trends/Ready-to-drink-beauty-is-ready-to-change-everything [Accessed 16 Apr. 2016]. Dempsey, A. (2016). Drinkable skincare is here. [online] Vitamin Daily. Available at: http://vitamindaily.com/canada/beauty/ drinkable-skincare-is-here-1.2220385 [Accessed 6 Mar. 2016]. Discover Skin, (2014). Drinkable vs Topical Skincare | Acne | sk:n. [online] Sknclinics.co.uk. Available at: https://www. sknclinics.co.uk/about-skn/news-and-blog/blogs/2014/nov/drinkable-vs-topical-skincare [Accessed 4 Mar. 2016]. Dostal, A. (2015). Cold-Pressed Juice: Hipster Hype or Health Hero?. [online] FoodInsight.org. Available at: http://www. foodinsight.org/cold-pressed-juice-healthy [Accessed 5 Apr. 2016]. Edgar, J. (2015). Can Beauty Waters Make You Prettier?. [online] Allure. Available at: http://www.allure.com/beautyproducts/2015/best-beauty-beverages#slide=1 [Accessed 2 Apr. 2016]. FDA, (2005). “Alcohol Free”. [online] Fda.gov. Available at: http://www.fda.gov/Cosmetics/Labeling/Claims/ucm2005201.htm [Accessed 14 Apr. 2016]. 78
Figaro Digital, (2016). Space.NK. [online] Figaro Digital. Available at: http://figarodigital.co.uk/case-study/space-nk/ [Accessed 1 May 2016]. Global Industry Analysts, (2015). Nutricosmetics Market Trends. [online] Strategyr.com. Available at: http://www.strategyr. com/MarketResearch/Nutricosmetics_Market_Trends.asp [Accessed 8 Apr. 2016]. Goins, L. (2015). Vitamin Drinks for Beautiful Skin – Do They Work?. [online] WebMD. Available at: http://www.webmd.com/ beauty/the-truth-about-beauty-beverages [Accessed 7 Apr. 2016]. Goldberg, M. (2016). Pressed Organic Juice Trends for 2016 | Pressed Organic Juice Directory. [online] Pressed Organic Juice Directory. Available at: http://pressedjuicedirectory.com/pressed-organic-juice-trends-2016/ [Accessed 6 Mar. 2016]. Heinrichs, R. (2015). What’s Drinkable Skincare and Why Should You Try It? - Flare. [online] Flare. Available at: http://www. flare.com/beauty/whats-drinkable-skincare-and-why-should-you-try-it/ [Accessed 5 Apr. 2016]. Hughes, L. (2013). Are Green Juices Healthy or Just Hype?. [online] Shape Magazine. Available at: http://www.shape.com/ blogs/fit-foodies/are-green-juices-healthy-or-just-hype [Accessed 5 Apr. 2016]. Hunter, A. (2015). The truth about beauty drinks. [online] Getthegloss.com. Available at: http://www.getthegloss.com/article/ the-truth-about-beauty-drinks [Accessed 2 Apr. 2016]. Innova Market Insights, (2013). Marketing Beauty Foods and Beverages | Nutritional Outlook. [online] Nutritionaloutlook.com. Available at: http://www.nutritionaloutlook.com/beauty/marketing-beauty-foods-and-beverages [Accessed 5 Apr. 2016]. Johnson, B. (2016). Why Drinkable Skin Care Is the Next Big Thing and How It Works. [online] Skincare and Beauty Blog: Beauty Products Reviews, Advice and Tips from Dermstore. Available at: http://www.dermstore.com/blog/drinkable-skin-care/ [Accessed 5 Apr. 2016]. Kinnaird, N. (2016). Space NK | About Us. [online] Spacenk.com. Available at: http://www.spacenk.com/uk/en_GB/aboutdemandware/about-us.html [Accessed 6 May 2016]. Mcvean, M. (2015). Juicing trend still going strong in 2015. [online] latimes.com. Available at: http://www.latimes.com/health/ la-he-juice-20150131-story.html [Accessed 5 Mar. 2016]. My Drink, (2015). Beauty Drinks. [online] Mydrinkbeverages.com. Available at: http://mydrinkbeverages.com/products/beautydrinks [Accessed 5 Apr. 2016]. Pendrill, K. (2015). Collagen-Infused Beauty Drinks : Beauty Beverage. [online] TrendHunter.com. Available at: http://www. trendhunter.com/trends/beauty-beverage [Accessed 4 Apr. 2016]. Reid, L. (2015). UK Moringa-based beauty drink overcomes ‘horrible’ taste. [online] NutraIngredients.com. Available at: http:// www.nutraingredients.com/Manufacturers/UK-Moringa-based-beauty-drink-overcomes-horrible-taste [Accessed 1 Apr. 2016]. Schawbel, D. (2015). Forbes Welcome. [online] Forbes.com. Available at: http://www.forbes.com/sites/ danschawbel/2015/01/20/10-new-findings-about-the-millennial-consumer/#2778bbc128a8 [Accessed 7 Apr. 2016].
Simpson, P. (2015). Ways the nutricosmetics market is maturing. [online] Newhope.com. Available at: http://newhope. com/beauty/4-ways-nutricosmetics-market-maturing [Accessed 12 Apr. 2016]. Space NK, (2016). Space NK | About Us. [online] Spacenk.com. Available at: http://www.spacenk.com/uk/en_GB/ about-demandware/about-us.html [Accessed 5 Apr. 2016]. Space NK, (2016). Space NK | Virgile + Partners. [online] Virgileandpartners.com. Available at: https://www. virgileandpartners.com/clients/space-nk [Accessed 3 Apr. 2016]. Technavio, (2016). [online] Businesswire.com. Available at: http://www.businesswire.com/news/ home/20160118005345/en/Technavio-Expects-Global-Beauty-Drinks-Market-Surpass [Accessed 18 Apr. 2016]. The Juice Executive, (2016). The Juice Executive : Fresh cold pressed vegetable juice | White label cold pressed juice. [online] Thejuiceexecutive.co.uk. Available at: http://www.thejuiceexecutive.co.uk/ [Accessed 2 May 2016]. The Soil Assos., (2016). Home. [online] Soilassociation.org. Available at: https://www.soilassociation.org/ [Accessed 1 Apr. 2016]. This Is Money, (2015). Sales at upmarket beauty chain Space NK soar. [online] This is Money. Available at: http://www. thisismoney.co.uk/money/news/article-3215441/Sales-upmarket-beauty-chain-Space-NK-soar-demand-designerfragrances-face-creams.html [Accessed 8 Apr. 2016]. Transparancy Market, (2015). Rising Demand for Nutricosmetics from Aging Population to Drive Market at 11.50% CAGR by 2020. [online] Transparencymarketresearch.com. Available at: http://www.transparencymarketresearch.com/ pressrelease/nutricosmetics-market.htm [Accessed 11 Apr. 2016]. Valenti, L. (2015). A 24-Hour Drink Menu for the Prettiest Skin of Your Life. [online] Marie Claire. Available at: http:// www.marieclaire.com/beauty/news/a13213/what-to-drink-for-better-skin/ [Accessed 3 Mar. 2016]. Varlet, C. (2015). Ready-to-drink beauty is ready to change everything. [online] CosmeticsDesign.com USA. Available at: http://www.cosmeticsdesign.com/Market-Trends/Ready-to-drink-beauty-is-ready-to-change-everything [Accessed 10 Apr. 2016]. Yahoo Beauty, (2015). Juice 2.0: The Next Generation of Drinkable Skin Care. [online] Yahoo.com. Available at: https:// www.yahoo.com/beauty/juice-2-0-the-next-generation-of-drinkable-skin-care-100839563443.html [Accessed 10 Apr. 2016]. Yeomans, (2015). Cosmetic brands facing more pressure on multifunctional credentials. [online] CosmeticsDesignEurope.com. Available at: http://www.cosmeticsdesign-europe.com/Market-Trends/Cosmetic-brands-facing-morepressure-on-multifunctional-credentials [Accessed 16 Apr. 2016].
APPENDIX 1 - 300 respondents. Chart 1.
Chart 3.
Chart 5.
Chart 2.
Chart 4.
Chart 6.
81
Chart 7.
Chart 8.
Chart 9.
Chart 10.
Chart 11.
Chart 12.
Chart 13.
Chart 14.
Chart 15.
APPENDIX 2. Interview with Space NK Customer: Lauren Hinks, aged 30. London, Hans Crescent (outside Harrods). Interviewer: So firstly, what are your thoughts on Space NK? Such as their products and store layout? Respondent: I love it, I really do. It’s always clean and fresh, in fact every store is like this. I try to visit all the ones in London if I can because they all have so much choice. The products are fantastic and I have a few favourite brands which I always stick to. Interviewer: How often do you visit Space NK? Respondent: I come here quite a lot, more than twice a week. I live not that far away and it’s quite easy for me to just pop in and out really. To be honest I probably spend too much time in here. Interviewer: Do you find yourself making a purchase every time you’re in here? Respondent: Yes, you know what I actually do. My husband says I drive him mad because I always come home with a Space NK bag. Then he ends up using my stuff anyway. Interviewer: So if you could describe Space NK in three words what would they be? Respondent: Innovative, fresh and friendly I think yes. Interviewer: Did you know that Space NK alongside its cult beauty products was one of the first juice bars in London? Respondent: No I didn’t! That’s really interesting because I first came here a few years ago so that must have been a long time ago. Interviewer: How would you feel about Space NK offering a tailored beauty drink which also offers and one to one consultation? Respondent: I think that sounds really cool, it is quite interesting actually because they sell a few like of you know those beauty shots in here that cater for skin but they’re not personalised. It more of a case like you just come in and read the packaging and pick up what’s best for you. Sorry, did you say it would be tailored? Interviewer: Yes personalised… you would have a one to one consultation with a skincare specialist who would tell you which ingredients are best tailored for your skin and then you’d go home with a 7 day supply. Would this interest you? Respondent: Oh right! Yes I think I would definitely be interested in that. I do like spending quite a bit on my skincare so I think this whole beauty drink thing is like the new thing and I would like to try it.
Interviewer: How do you feel about Space NK offering it as a cold pressed drink which boosts hydration, plumpness, radiance etc.? Respondent: I think it’s a really cool idea, I have never heard of cold pressed juice which specifically caters for skin because they are mostly just fruit extracts aren’t they? But otherwise yeah I think the skincare boosting part is the most appealing for women. Interviewer: Would you be willing to pay £50 for a personalised 7-day supply? Respondent: Yes I think so, I mean Space NK are quite niche aren’t they so I wouldn’t expect it to be any cheaper than £45 to be honest. Interviewer: Would you prefer it to be in a glass bottle or plastic? Respondent: Plastic so I can recycle it. Interviewer: Great, thank you so much for helping me.
APPENDIX 3. Interview with Space NK Customer: Dorothy Mark, aged 28. London, Hans Crescent (outside Harrods). Interviewer: I would like know what are your thoughts on Space NK? Such as their products and store layout? Respondent: Well I think it’s quite contemporary and friendly in here. The products are easy to find and it’s never too busy as well. I think if there’s something you want for your skin or make up wise you will definitely find it in here. I like how it sells different things to other places like Boots and the other one, Superdrug. Space NK is more authentic and exclusive for skincare brands mostly I think. Interviewer: How often do you visit Space NK? Respondent: I like to come here weekly, I make time on Saturday because I am working in the week. But I just like the atmosphere in here, it’s quite calm and everyone’s approachable. Interviewer: Do you find yourself making a purchase every time you’re in here? Respondent: Yes, I do. Interviewer: So if you could describe Space NK in three words what would they be? Respondent: I think I would say it’s bright, exclusive and special! Interviewer: Did you know that Space NK alongside its cult beauty products was one of the first juice bars in London? Respondent: Really? I never knew that, I wonder what happened to it! *laughs* Interviewer: They released information on how London wasn’t ready for a juice bar back then, but how would you feel about Space NK offering a tailored beauty drink which also offers boosting skincare molecules? Respondent: Well I think that it would work now because well I guess us as customers want to feel like we are being given a personal shopper sort of service. The staff in here do always make sure you’re getting the best service. You see those juice bars everywhere now though don’t you? I think for me personally, I would like to know what’s in the drink for it to be in Space NK.
Interviewer: You would have a one to one consultation with a skincare specialist who would tell you which ingredients are best tailored for your skin and then you’d go home with a 7 day supply. Would this interest you? Respondent: Yes I think it sounds exciting, I would like to see how it works. Especially the ingredients. Interviewer: That’s my next question! How do you feel about Space NK offering it as a cold pressed drink which boosts hydration, plumpness, radiance etc.? Respondent: It sounds like it would definitely fit in with Space NK because that’s the type of ingredients they would stock as they are skincare experts. Interviewer: Would you be willing to pay £50 for a personalised 7 day supply? Respondent: I have seen cleanses for £200 to £300 so yes I would definitely say that’s a great price. Interviewer: Would you prefer it to be in a glass bottle or plastic? Respondent: Plastic, its less fuss really. Interviewer: Thank you so much for your time!
APPENDIX 4. Interview with Space NK Customer: Stephenie Obinwe, age 24. Nottingham. Interviewer: Ok, so I would like know what are your thoughts on Space NK? Such as their products and store layout? Respondent: Its really nice in here, everything is so simple and great. It’s minimalistic and the products are always stored quite neatly and in good order. I like how they stock exclusive brands as well because it’s like the balance between Boots and Selfridges you could say. Interviewer: How often do you visit Space NK? Respondent: I would say every time I come out shopping, so that’s every 2/3 weeks really. Interviewer: Do you find yourself making a purchase every time you’re in here? Respondent: Sometimes yes, I think I like to see what they have new in store or just a browse. Interviewer: So if you could describe Space NK in three words what would they be? Respondent: Welcoming, appealing, different. Interviewer: Did you know that Space NK alongside its cult beauty products was one of the first juice bars in London? Respondent: No I didn’t know that no, but Space NK still do sell other things in here for that whole cleanse and juicing lifestyle now. Interviewer: How would you feel about Space NK offering a tailored beauty drink which also offers boosting skincare molecules? Respondent: A tailored beauty drink? Space NK could do that quite well… well with the skincare it’s something they specialise in already so yes why not.
Interviewer: The concept would include a one to one consultation with a skincare specialist who would tell you which ingredients are best tailored for your skin and then you’d go home with a 7 day supply. Would this interest you? Respondent: The 7 day supply, that’s one for everyday so yes, I’ve tried other juice cleanses but not tailored for my skin. Interviewer: How do you feel about Space NK offering it as a cold pressed drink which boosts hydration, plumpness, radiance etc.? Respondent: I think it sounds multi-functional which is quite the demand now, I wouldn’t just buy the juice on its own, and I would expect it to come with the skin benefits. Everyone wants to have great skin and I think that drinking and eating are always important factors. Interviewer: Would you be willing to pay £50 for a personalised 7 day supply? Respondent: £50 for 7 day supply, yes I think it’s quite good! Interviewer: Would you prefer it to be in a glass bottle or plastic? Respondent: Definitely plastic, glass is heavy and not really needed. Interviewer: That’s everything, thank you so much.
APPENDIX 5. Interview with Space NK Customer: Tayla Davies, age 26. Birmingham, Harvey Nichols. Interviewer: Please share with me what are your thoughts on Space NK? Such as their products and store layout? Respondent: Well it’s very clear from when you walk in that it’s a beauty and skincare store. The products stand out and everything is in sections. Make up is one section, hair is another and inner body stuff is another section. Nothing is mixed up so it’s just easy to know where to go. I like the brand, I think it’s sophisticated. Interviewer: How often do you visit Space NK? Respondent: Couple times a week. Interviewer: Do you find yourself making a purchase every time you’re in here? Respondent: Not every time! But all my products are from here, especially my skincare. I don’t really go anywhere else because I feel that the staff always know their stuff. Interviewer: So if you could describe Space NK in three words what would they be? Respondent: Knowledgeable, refined and sophisticated. Interviewer: Did you know that Space NK alongside its cult beauty products was one of the first juice bars in London? Respondent: Really? No I didn’t. Interviewer: How would you feel about Space NK offering a tailored beauty drink which also offers boosting skincare molecules? Respondent: They already sell a few drink things don’t they? Like the shots and collagen things, I’ve seen them before but I didn’t buy them. Interviewer: What made you not purchase them? Was there a specific reason? Respondent: I just didn’t really think they wowed me enough, it was just like oh a shot of collagen? I don’t know, it just didn’t appeal to me. Usually if I buy something it has to catch my eye.
Interviewer: That’s interesting, so what if a drink was tailored for your skincare? Respondent: I would be interested to see how it works, I’d like to think it’s convenient. Interviewer: The concept would include a one to one consultation with a skincare specialist who would tell you which ingredients are best tailored for your skin and then you’d go home with a 7 day supply. Would this interest you? Respondent: Yes if its 7 days then that’s not a huge amount of time. I’d like to know what works for my skin as well. Interviewer: How do you feel about Space NK offering it as a cold pressed drink which boosts hydration, plumpness, radiance etc.? Respondent: Radiance and plumpness is what I look for so definitely something I would look into. Interviewer: Would you be willing to pay £50 for a personalised 7 day supply? Respondent: I thought it would have been more but yes I would. Interviewer: Would you prefer it to be in a glass bottle or plastic? Respondent: No not glass, plastic would be my preference. Interviewer: That’s everything, thank you so much.
APPENDIX 6. Interview with Peter. Supervisor at Space NK London, Hans Crescent (outside Harrods). Interviewer: Did you know that Space NK alongside its cult beauty products was one of the first juice bars in London when it first opened, how would you feel about Space NK offering something similar now? Supervisor: Yes I did, I think it’s a shame they don’t do it anymore because being in London I reckon it would have worked so well as of now. Interviewer: What age and gender do your drinkable products attract? Supervisor: Pretty much everyone, mostly females, young and independent women. Sometimes we get older women too, like in their 40s. Interviewer: With your current beauty drinkables such as the shots, how popular are they with your customers? Supervisor: Very popular, I would say the drinks and shots are most popular because customers especially the female customers want them. It is interesting because we won’t really advertise about them, but they are still very very popular in most stores. Interviewer: In your detox, cleanse and supplements range, what are the most important benefits that con¬sumers look for? Supervisor: I think they love the skincare benefits mostly, because they want to improve that but also they like to feel good whilst they enjoy the product. I think taste is an important factor, it has to taste good, clean and fresh if you see what I mean. Interviewer: Do consumers come in looking for these products or do you have to introduce these to them? Supervisor: Consumers do come in and look for them and even if consumers don’t know about them, I would say mostly that when they’re introduced to the products they tend to buy them instantly. Interviewer: Do you feel that the trend ‘beauty from within’ has shaped the way consumers feel about their skin? Supervisor: Oh yes definitely, I think that feeling good and looking good is very similar you know? It’s become equal and people want to do both at the same time. Interviewer: Do you believe that consumers are changing the way they look after their skin through drinkables or do they still believe in the topical form of products such as creams and lotions? Supervisor: Well, I think creams and lotions are still popular because its an easier choice and that’s what people are used to but I think that drinking something is very important to consumers aswell. I think that when you drink something and it has other benefits for the skin, consumers are already starting to change their minds on it. Espeically Space NK consumers, they know what they want and I would say they are always willing to try something new. Interviewer: Have you seen anywhere else that offers beauty drinks with a tailored service? Supervisor: No I haven’t, not really.
Interviewer: My concept is to offer Space NK a product extension. This would be to offer a beauty drink which is cold pressed from fruits/vegetables. The service would include educating customers on different skincare molecules such as hyaluronic acid, collagen and biotin shots just to name a few. So it’s all about tailoring and ensuring the consumer knows what’s best for their skin. They would have the option of a 7 day to take home also. What are your thoughts? Supervisor: Oh that’s interesting, I like it, it sounds very cool. I think that if Space NK was once a juice bar, they can do it again. I know that hyaluronic and collagen are definitely very popular with our customers. One of the most popular ingredients we do, but yes I think the concept is quite new and exciting so definitely I think it would suit Space NK. But also the vegetable or fruit extract you said, I think its very important to make sure consumers understand what it is. Interviewer: How would you expect the packaging to be for my concept? Glass or plastic? Please note that this is a product extension for Space NK so it would be their own brand. Supervisor: I think Space NK majority of the time sell everything in a plastic container or bottle, it just is easier for the customer to carry and recycle. Interviewer: What are your thoughts on the name ‘Skin Deep – Beauty from Within’ by Space NK for my concept? Supervisor: That is a very nice name, I think that ‘Skin Deep’ sounds very much like something that Space NK would have. It says it how it is, Skin Deep. Yes, I like the tag line too, beauty from within. It sounds like well put together. Interviewer: With the cold pressed drinks, they would have to be put into chiller cabinets? Like fridges that would hold 100 bottles, in one corner of the store, how do you feel about this with Space NKs brand image and store layouts? Supervisor: I think that if it’s a product that promotes a fresh branding then yes fridges are great, I don’t think it would affect our branding because if it’s a product which is benefitting the skin and body then I would think that it would actually appeal to consumers better. Interviewer: Do you believe ingredients that consumers can recognise on drinkable products, such as natural extracts are important for brand trust and transparency? Supervisor: Without a doubt yes, customers want to know whats inside because they value their body and skin. Especially with their wellness, it’s very important to know whats going into your body and what it is doing for you. Being as open as you can promotes the honesty in a brand. Interviewer: How do you think tailored skincare can change the future for consumers? Supervisor: Well I think that we all want to feel special, we all want to be given an individual service wherever we go, and this is important for internal and external wellness for the body and skin you know. Customers always want to feel like they’re being understood and taken care of, so I think that being explained what ingredient or product would do for the customer on a personal level will bring them back to you. Interviewer: Thank you for your time.
APPENDIX 7. Interview with Amy George. Sales Assistant at Space NK London. Interviewer: Did you know that Space NK alongside its cult beauty products was one of the first juice bars in London when it first opened, how would you feel about Space NK offering something similar now? Sales Assistant: Yes, I did and in fact, we were talking about this in store the other day with some of the colleagues. I think yes it would be quite cool and interesting actually. Interviewer: What age and gender do your drinkable products attract? Sales Assistant: Females definitely, age range is between 20 to 40. Interviewer: With your current beauty drinkables such as the shots, how popular are they with your customers? Sales Assistant: In our store, they are definitely a popular choice; I’m not sure about other stores as I only do work in this one. I would say on a daily basis around 10 customers come in and buy something either they have brought before or want to try something new out of the whole drinkable range. So it’s definitely at the minute a little bit more in demand, maybe cos of the weather! Everyone wants skin pick me ups! Interviewer: In your detox, cleanse and supplements range, what are the most important benefits that con¬sumers look for? Sales Assistant: I would personally say from what I sell, it’s down to what the customer wants. Some customers want detoxing and some want more benefits for the skin, so yes I would say it’s a combination of body and skin elements. Interviewer: Do consumers come in looking for these products or do you have to introduce these to them? Sales Assistant: Both, I mean usually our customers are always quite open to trying new things or being introduced to new products we have in store, you know they don’t mind spending the money on them but the customers who just know what they want, know a lot about these drinkables and shots. Interviewer: Do you feel that the trend ‘beauty from within’ has shaped the way consumers feel about their skin? Sales Assistant: Yes I would say so, I think that now everyone wants to feel like they’re looking after their skin in different ways and everyone’s trying to keep up with all these new things that are being introduced into the market. Interviewer: Do you believe that consumers are changing the way they look after their skin through drinkables or do they still believe in the topical form of products such as creams and lotions? Sales Assistant: It really depends, I have tried drinkable skincare myself and I really enjoy it. I think that creams are all well and good but only for the time being as they are only for the surface of the skin but I prefer drinking collagen or something because then it feels more rewarding, it gives the feeling that your making more of an impact on your skin and body through taking it oral. Interviewer: Have you seen anywhere else that offers beauty drinks with a tailored service?
Sales Assistant: No. Interviewer: My concept is to offer Space NK a product extension. This would be to offer a beauty drink which is cold pressed from fruits/vegetables. The service would include educating customers on different skincare molecules such as hyaluronic acid, collagen and biotin shots just to name a few. So it’s all about tailoring and ensuring the consumer knows what’s best for their skin. They would have the option of a 7 day to take home also. What are your thoughts? Sales Assistant: I think that 7 day supply is great, only because when we get customers in store I have had a few comments on how they prefer to buy in packs. But other than that, the concept sounds appealing and I think it would fit in with Space NK. Interviewer: How would you expect the packaging to be for my concept? Glass or plastic? Please note that this is a product extension for Space NK so it would be their own brand. Sales Assistant: I think Space NK majority of the time sell everything in a plastic container or bottle, it just is easier for the customer to carry and recycle. Interviewer: What are your thoughts on the name ‘Skin Deep – Beauty from Within’ by Space NK for my concept? Sales Assistant: That is a very nice name, I think that ‘Skin Deep’ sounds very much like something that Space NK would have. It says it how it is, Skin Deep. Yes, I like the tag line too, beauty from within. It sounds like well put together. Interviewer: With the cold pressed drinks, they would have to be put into chiller cabinets? Like fridges that would hold 100 bottles, in one corner of the store, how do you feel about this with Space NKs brand image and store layouts? Sales Assistant: I think that if it’s a product that promotes a fresh branding then yes fridges are great, I don’t think it would affect our branding because if it’s a product which is benefitting the skin and body then I would think that it would actually appeal to consumers better. Interviewer: Do you believe ingredients that consumers can recognise on drinkable products, such as natural extracts are important for brand trust and transparency? Sales Assistant: Definitely, I think ingredients are probably the most important factor when customers buy products, especially in Space NK. They always ask about the ingredients it is just so important to them to know what is in the product but it is also more important that we know our ingredients inside out. Interviewer: How do you think tailored skincare can change the future for consumers? Sales Assistant: Customers want to be more knowledgeable about what products contain; they are shifting their mind set to understand what is better for them individually. If we can enhance their knowledge through services that explain that then I think it can only create a better opportunity for Space NK to build better relationships with their consumer. Interviewer: Thank you for your time.
APPENDIX 8. Focus group with 5 female millennials. Respondent a: Bally Chahal, 21. Respondent b: Francesca Bradshaw, 25. Respondent c: Ainaa Laurd, 29. Respondent d: Megan Rogers, 32. Respondent e: Pam Gill, 35. Interviewer: I’d like to discuss my concept: A beauty bar style approach would be considered in Space NK, where consumers are educated on ingredients and their skin type. Consumers can choose from three base drinks that they then can add beauty shots too. The base drinks would be cold pressed, ready-made and refrigerated. The key elements of this service would be 100% raw ingredients as well as scientific molecules that would boost collagen, improve skin radiance, youthfulness, texture etc. An option of a 7 day supply would be available. What are your thoughts? Respondent b: It sounds really cool, I quite like the idea of the base drinks so then it’s not like you’re completely waiting on a drink made from scratch if that makes sense? Cold pressed drinks are also a big trend you see them everywhere, on Instagram and celebrities are always promoting it. I’m quite fascinated by those molecules. Respondent a: I like the idea too! I also see cold pressed juices everywhere on social media but I don’t really see them on the high street though. There’s loads of smoothies like Naked, I know it’s not the same as cold pressed, but they’re full of sugar and its actually been said that they contain more sugar than Pepsi, I think it actually contains something ridiculous like 35 grams of sugar. So I do try to eat quite healthy and it’s not always the reason behind clear skin to be honest. Respondent e: The idea interested me! I’ve also seen that too, with the ‘Naked’ smoothies. I think the idea is actually interesting because you said it’s going to be cold pressed so I imagine it would be completely fresh and raw meaning the results would probably work quicker than creams and things you apply on top of the skin. I also think Space NK would probably be the most suited retailer because they’re like quite premium with their skincare. *Interview repeated the concept idea for other respondents. Respondent c: I’m persuaded by the whole skin boosting thing… What interests me is the multi-functional benefits, because I think that’s what people want. No one can be bothered with like creams, toners and serums every morning and night, it’s really expensive as well for younger people. I think if it is cold pressed you’ll know exactly what you’re getting because labels usually are honest with ingredients and its targeting both your beauty and body. Also, I think that people would be more willing to pay for a drink that’s personalised for your skin as opposed to just picking up a generalised cream off the shelf. Respondent d: I love the idea of it being explained to me in store if I am honest, there’s nothing really on the high street which offers you that sort of thing if you think about it. Those molecule ingredients sound quite innovative, I haven’t heard of them personally but if Space NK are the ones who will do it I would be really interested because they’re a trust worthy and reputable brand.
Respondent e: I agree. Space NK is where I would see this sort of idea because they are considered to be the real skincare gurus. I also feel that people would take it seriously due to the nature of Space NK being the retailer who stock niche and exclusive products. Interviewer: Have you experienced a similar service anywhere, or do you know an existing product/brand who offer this? Respondent d: No I haven’t, I think that’s what makes it all new and exciting because it’s quite unique. Respondent b: No. Respondent c: Same here, I haven’t experience anything similar. The only thing I’ve seen are smoothies pretty much in Boots and supermarkets but haven’t actually noticed cold pressed drinks for skin. Respondent e: No not seen a similar service anywhere, not even a personalised one online either. Respondent a: I have seen that brand called Fountain, they sell their beauty supplement in Space NK but it’s not personalised. Interviewer: How familiar are you with Space NK, what are your thoughts on them? Respondent e: If I am going into town or shopping, I always go in because they always have something new or something that interests me. Every store is about being really fresh and contemporary. Respondent a: Space NK is one of my favourite stores and I think that the idea actually fits what Space NK are about. Their products are interesting and I also feel that purchasing things from there are like a treat to yourself. You don’t feel guilty purchasing products from there because they just make you feel like everything you buy is worth it! Respondent c: That’s actually true, I am quite familiar because my mum and sister always buy things from there. I think if anyone was to ask me where to go for skincare products, I would tell them to go Space NK because everything they do is revolved around taking care of yourself especially your skincare. Respondent b: It’s one of them brands that make you want to buy everything to be honest. It’s just always clean and tidy in there and the staff are well knowledgeable about all of their products. They stand out from places like Boots and Holland & Barrett. They’ve sort of like made their mark and take their brand quite seriously. Respondent d: I think that they’re very original yet exclusive. They usually have products that no one else on the high street does which makes them the ultimate ‘go to’ for skincare and wellness. Interviewer: Have you had any skincare products personalised to your needs? Respondent b: No not personalised but I’ve had someone at a counter consult me but they never actually told me which products to buy which was annoying.
Respondent d: I’ve been told what products to use by assistants at counters but they usually don’t know about specific ingredients that make a real difference. Respondent e: I just watch beauty bloggers, I’ll just go out and buy whatever they do. Thinking of it now it is actually quite interesting that I do that. I do need something to be tailored for me. Respondent c: Nope, never. I think that’s the next new thing in skincare. We just have too much choice at the minute and we never ever look at ingredients, well I don’t anyway, I just look at the skin type its for. Respondent a: No because no one actually offers personalised advice or products and I really do want to try something which would be tailored for me. Interviewer: Have you tried a beauty drink that caters for your inner and external wellness? Respondent a: I’ve had cold pressed juice before but not with scientific ingredients. Respondent d: No I haven’t but I really want to, it sounds like it would be quite tasty and convenient. Respondent c: No never and I have never seen them anywhere on the high street. I also want to try it. I think the idea behind it being specifically for boosting inner and external would be appealing to so many people. Respondent e: Same here, I would love to see this happen because I feel as if it would really be something that appeals to so many females nowadays. Respondent b: No I haven’t tried it either but I know so many people who would love it. Interviewer: How do you feel about being educated through a one to one consultation about ingredients that would benefit your skin type? Respondent b: Yes one hundred percent, why wouldn’t I want to know what’s going to benefit me? I think that having a one to one consultation would prove Space NK’s dedication towards their customers and make them feel like they’re being looked after! Respondent e: Oh yes definitely for the beauty drink I wouldn’t want to just walk in and buy the whole thing myself. If I am paying money for a service where ingredients are raw and scientifically proven then I would expect the consultation to be tailored to my needs and just as premium. Respondent a: I feel as if I need to be educated on what ingredients are best suited because it’s so easy for me to walk into a store and pick up something that has great packaging. You know what I mean? I think knowing which ingredients do what, especially for a tailored drink would make it just the more enjoyable.
Respondent c: Me too, I believe that the one to one consultation is something I would trust from Space NK because they are very reliable and trained to know a lot. They are always quite responsible and seem very confident on what they say. I think we all want to feel like we are getting a personal hands on experience everywhere we go and want to be treated like it’s a personal shopper service. Respondent d: I would love it, I think for a brand who sells premium skincare and beauty stuff I would expect them to provide a service like this, it just makes the experience individual. Respondent a: How many bottles would I need? Respondent c: Yes I think I would actually like to know how many I would need to purchase to actually reap the benefits of the idea and what’s the shelf life because they are cold pressed? Interviewer: The shelf life would be 30 days refrigerated. One bottle of the beauty drink should be consumed once a day. This means your body will get 24 hours to fully absorb the benefits of all the ingredients before you proceed with the rest of the supply. A 7 day supply for your internal and external cleanse would be sufficient enough to feel and see results. Is this something that would be beneficial for you? Respondent c: Oh that’s cool, yes it would work for me. I actually thought the shelf life would have been much shorter like 4 days or so. Respondent a: I think it’s great, 7 days is definitely a suitable amount of time for me and I think most people anyway. It’s not hard to do and it’s just 7 days, if I can feel cleansed inside as well as improved skin I would love it! Respondent b: Yes it’s actually a really good idea because 7 days is a good for someone to commit to something as opposed to like a consistent 30 day thing if that makes sense? But also yes it’s beneficial for me because one beauty drink a day doesn’t seem like a complete chore. Respondent e: 30 days, that’s impressive but I don’t understand how the shelf life is long if it is cold pressed juice? Interviewer: The ingredients would go under a process called HPP – high pressure processing. The process means absolutely NO heat is exposed to the ingredients and are pressed under high pressure at very cold temperate. Fruit and vegetable bacteria would be killed off ensuring NO yeast or moulding. Yeast is where the juice splits, the bottom half would be lumpy and the top would usually be watery, imagine when you make smoothies at home and leave them in the fridge. That’s what it would prevent. HPP also maintains the colour, texture and taste of the ingredients ensuring a vibrant, smooth and refreshing result. This extends the shelf life to 30 days as opposed to extracts without HPP, which would only have a 3 day shelf life. Respondent a: Oh right, well that makes sense because when I do make them at home they get that yeast stuff and it’s so annoying because you have to shake it so much. Respondent b: Same as me, but I like how it would retain the smooth texture and colour, it’s more appealing to purchase.
Respondent c: I agree, if the juice was lumpy or only had a life of 3 days it’s just pointless buying it. If it’s something I will be investing in to see or feel a difference in my body or skin, it has to provide me with long lasting benefits. Respondent b: Would the beauty drink contribute to my 5 a day? Interviewer: Yes, so one bottle a day would contribute to 1 of your 5 a day. Is this appealing? Respondent b: That’s enticing because it’s not like that vitamin water you buy in the supermarkets for around £1.50 which isn’t even part of your 5 a day and doesn’t help with skin or anything! Respondent c: I agree, everyone’s more likely to buy something with like cold pressed ingredients that go towards your recommended daily amount. Respondent a: I do try to eat healthy like I said before, that’s the aim with beauty drinks I think, and they should cater for more than just like skin benefits. That’s what will make it more like unique in my opinion. Respondent d: That’s something I would expect from Space NK especially with it being a drink targeting your inner body. Respondent e: So far I like the whole juice concept but the actual skin boosting ingredients what are they? Like how does that work? Interviewer: Are you aware on the following ingredients and the skincare benefits they provide: Biotin, Hyaluronic, Biotin, Q10 or Resveratrol? Respondent d: Nope, none of them. Respondent e: I have heard of collagen in loads of skin products but don’t know about it. Respondent b: I’ve heard of collagen but not the rest no. Respondent c: Me too, I have seen them in products but don’t really know the benefits. Respondent a: I’ve heard of hyaluronic and collagen but don’t know the benefits they provide. Interviewer: So they’re all different skin boosting molecules that provide various benefits: anti-oxidant, anti-inflammatory, hydration, boost energy, radiance, plumpness and collagen formation. These are provided in liquid form. Once you choose the base drink, you would then be provided with small bottles of your chosen molecules (enough to last the 7 day supply) which you add as and when you want to consume the beauty drink. The beauty drink over 7 days would nurture your body and skin from the inside out. Respondent e: No not seen a similar service anywhere, not even a personalised one online either.
Respondent a: I have seen that brand called Fountain, they sell their beauty supplement in Space NK but it’s not personalised. My mum has used it, so the reliability behind these molecules must be high. Respondent c: Same here, I haven’t experience anything similar. The only thing I’ve seen are smoothies pretty much in Boots and supermarkets but haven’t actually noticed cold pressed drinks for skin. Respondent d: No I haven’t, I think that’s what makes it all new and exciting because it’s quite unique. Respondent b: I really like the sound of the skincare ingredients. Interviewer: So after all this information I have given you, would you be willing to pay £50 for a 7 day supply? Respondent b: Yes, I have seen juice cleanses before in a very expensive shop and it was like over £150. So I would rather pay that £50 and get juice for 7 days as well as the beauty shots. Respondent c: Oh God that’s a lot, £150 for juice? That’s crazy, I think £50 divided by 7… its around £7 with the beauty shot thing? Yes I think that’s really good considering its going to be tailored. Respondent a: I had a feeling you was going to ask this question and I would say between £40-45 would be what I’d pay! I think the whole mix and match option is also a great factor. Respondent e: For Space NK I would pay it because I think that with them being skincare specialists and whatever, it makes it more reliable. If it was in Boots I just wouldn’t pay that sort of price. Respondent d: I agree, I go into Boots to buy my meal deals and not beauty or tailored drinks, so if anything I would expect it to be in Space NK because that’s what they’re all about. Interviewer: Would you prefer glass or plastic packaging? Respondent b: Definitely plastic. Respondent c: I agree, it’s easier to recycle. Respondent a: Same, glass it just annoying. Respondent d: Plastic aswell. Respondent e: Plastic because I would not need to worry about it breaking. Interviewer: Out of the following logos, which one would you prefer? *Respondents are shown all three logos.
Respondent a: I like the third one, its really nice. Respondent d: Yes me too. Respondent e: 100% the third one. Respondent b: I love the third one, it looks clean. Respondent c: Me aswell, the third one is modern and quite feminine I think. Interviewer: Do you watch beauty bloggers and if so, do they influence your purchase decisions on skincare? Respondent d: Yes I watch them! I have a few favourite bloggers, I watch them on YouTube and follow their Instagrams. I really like Kaushal Beauty, because she seems to be genuine with her reviews and giving her honest opinion on a brand. Also she only features brands that actually work for her, she doesn’t post reviews on things for just getting paid. They also have like promo codes in the description boxes of their videos which I love, they make me go and buy the product because I can get it cheaper. Respondent a: I watch them too and to be honest I actually rely on their advice quite a lot, if a blogger has reviewed something and it matches my concerns for my skin or hair or anything else, I will probably 100% go and buy it. Especially if more than one blogger is talking about the same thing, I think then it picks up massively in the beauty blogging world, now you can even find like hashtags for a specific item on Instagram and it will show you how many people have purchased it or posted a picture on it. I think the hashtag thing and being active on social media platforms like YouTube and Instagram is all about creating awareness and being up to date with the latest trend in beauty and skincare. Respondent e: I would say yes they influence what I buy and where I buy the products from. I watch around 3 or 4 of them and I think that because they’re so knowledgeable about products and they have so many followers, they have to be honest because they don’t want to jeopardise their reputations. They’re really fun to watch and their advice is always insightful, I like having confirmation that someone’s used a product and it works for them because then at least I know I won’t be buying it off the whim! I would say the promotional codes are a great incentive because it makes viewers buy into a product. Respondent b: Beauty bloggers are really quite influential in my life, my friend does it and she says that it is so rewarding because viewers genuinely appreciate the time you put into the content. She also said that because she inspires so many people to try new things, I think her followers are like over a million on YouTube, that it’s like everyone trusts her opinions. Personally, I think it is quite cool how word of mouth or blogging can change make people buy things they usually would not consider! Respondent c: I agree as well, if more than one beauty blogger are talking about a specific product, I would be very tempted to buy it. Every time I have purchased a product from a beauty bloggers review, it has always worked for me so naturally I would buy more things that they review. Interviewer: Thank you all so much for your time!
APPENDIX 9. Interview with Amelia Powell, 23 year old. User of nutri cosmetic beauty supplements. Fig 32. Khatkar, N. (2016) Primary Research Photo. Taken on iPhone 6.
Interviewer: What made you choose beauty supplements? Respondent: I’m quite health conscious and I like to keep up with new innovations in the health and wellness sort of area. I felt like I needed extra vitamins and nutrients throughout my daily routine to give me an extra boost. I feel good when I take them, I feel like they really work. Interviewer: How long have you been using these beauty supplements? Respondent: I’d say around 2 months or so, I try to remind myself to take them daily. Interviewer: You have quite a large range here, were these tailored for your needs or did you choose which ones you felt were most suitable? Respondent: I do have loads and it is actually annoying because they all benefit me in some way but they are for single benefits, so none of them are multi functional. No one tailored them for me I just chose whichever ones I felt were best for me. Interviewer: How did you discover which ones were best for you? Respondent: I sort of read the benefits and made sure I wasn’t allergic to anything but also the packaging was super cute so I just thought why not buy a bunch of them and see how I get on. Interviewer: Would you prefer the supplements to be offered in a drink form? Respondent: Yes I would, I mean all these pills are actually really inconvenient because I get confused sometimes which ones I should take or which ones I have been taking. A drink would be more satisfying and worthwhile in a way because I can just consume the nutrients at once. Interviewer: Would you find a beauty drink appealing that targets both the internal body and external skin? Respondent: Yes definitely. I mean it’s not easy to find products that do cater for both especially in a drinkable form. I have seen many collagen based drinks but I question how well they work because sometimes they’re priced really low or really high. There doesn’t seem to be a balance between this type of offering. I have even seen a beauty drink in Primark, the one in Nottingham! It was like 99p or something, I was quite shocked because retailers like that just don’t promote or represent the real issues.
APPENDIX 10. Links to all marketing budget costs.
Item
Source of Quotation
Vogue Magazine Insertion
http://www.condenast.com/brands/vogue/media-kit/print/rates
Harpers Bazaar Insertion
http://www.harpersbazaarmediakit.com/r5/showkiosk.asp?listing_id=4730502&category_id= 27877
Instore POS
http://www.discountdisplays.co.uk/html/indoor-displays.html
Promotional Flyers
http://www.vistaprint.co.uk/customflyers.aspx?couponAutoload=1&GP=5%2f19%2f2016+9%3a38%3a58+PM&GPS=3950428216 &GNF=0
Billboard Spaces
https://www.signkick.co.uk/
Billboard Prints
https://www.digitalprinting.co.uk/products/96-48-6-sheet-posters/29/
Custom Invites
http://www.vistaprint.co.uk/category/invitations.aspx?GP=5%2f19%2f2016+9%3a40%3a19+ PM&GPS=3950428216&GNF=1
T shirts
http://www.streetshirts.co.uk/design-your-own-t-shirts
Window Decals
http://www.vistaprint.co.uk/windowdecals.aspx?GP=5%2f19%2f2016+9%3a42%3a15+PM&GPS=3950428216&GNF=1
Beauty Shot Bottles
http://www.ampulla.co.uk/search.asp?strKeywords=10ml+bottle&submit=
APPENDIX 11. Email with Alexandra Auger regarding costs for cold pressed juice bottling, labelling and contents.
WORD COUNT: 7473
Nottingham Trent University School of Art and Design
Ethical Clearance Checklist for individual student projects To be completed by the student for an individual project that involves the collection of primary data this includes images, drawings, photographs, questionnaires and interviews. Please complete this document following the guidance in the School of Art and Design Ethical Guidelines and Framework for Research and Practice Undertaken by Students.
Section A: About the research Navdeep Khatkar Fashion Marketing and Branding FMBR30001: Strategic & Creative Solutions
Name: Programme of Study: Module Title and Reference Number: Name of module leader/supervisor responsible for the management of the project Duration of project Project title
Suzanne Winfield All year Stage 2 Realisation
Section B: Training and experience Have you had previous experience of or been trained in the methods employed to collect data, and/or discussed with your supervisor? Have you been informed, given guidance, had issues outlined in relation to research ethics and consideration in relation to your project?
yes
no
yes
no
yes
No
yes
no
yes yes yes yes yes
no no no no no
n/a n/a n/a n/a n/a
yes yes
no no
n/a n/a
Section C: Methodology/Practice/Procedures Does your proposed study involve procedures which are likely to cause physical, psychological, social or emotional distress to participants or yourself? Does your proposed study involve the use of hazardous materials, other than those currently covered by the School Health and Safety procedures?
Section D: Ethical checklist Does your project involve observing/questioning/the use of people in any way? Yes Please complete the remainder of the form No Go straight to Compliance with ethical principles and Declaration Does your study involve vulnerable participants as described in the Student Ethical Toolkit? Does your study involve observation and/or recording of identifiable participants without their knowledge? Will participants give informed consent freely and be fully informed of the study and of the use of any data collected? Will participants be informed of their right to withdraw from the study? Will all information on participants be treated as confidential and not identifiable unless agreed otherwise in advance and subject to legal requirements? Will any recordings of participants be securely kept and not released for use by third parties? Will storage data comply with the Data Protection Act 1998?
If you have selected an answer shaded in grey, you must submit a full application to the Subject REC or modify the project. A full submission to the Subject PREC comprises of: this form, a project proposal, an additional statement of up to 500 words outlining the ethical issues raised by the project and the proposed approach to deal with these.
Compliance with Ethical Principles
If you have completed the checklist to the best of your knowledge without selecting an answer shaded in grey, the research is deemed to conform with the ethical checkpoints and you do not need to seek formal approval from the Subject PREC. Please sign the declaration below, and lodge the completed checklist with your supervisor.
Declaration
I have read the Ethical Guidelines and Framework for Research and Practice Undertaken by Students. I confirm that the above named investigation complies with published codes of conduct, ethical principles and guidelines of professional bodies associated with the research discipline. Name of student: Navdeep Khatkar
Signature of student ……………………………………………………………………………….
Signature of supervisor/module leader ……………………………………………..…………………………..………. Date ……………………………………………………………….. Form reviewed October 2011, final copy 14.10.11
School of Art and Design
fmb
Fashion Marketing & Branding
FMBR30001 Project Declaration Project: Stage Two Realisation: Skin Deep by Space NK.
This submission is the result of my own work. All help and advice other than that received from tutors has been acknowledged and primary and secondary sources of information have been properly attributed. Should this statement prove to be untrue I recognise the right and duty of the board of examiners to recommend what action should be taken in line with the University's regulations on assessment contained in its handbook.
Signed: __________________
Print name: Navdeep Khatkar
Date: ______________