SAY SOMETHING SOCIAL FINAL ASSIGNMENT

LAUNCHING

IN HONG KONG SAY SOMETHING SOCIAL

Rosa Smith 1

EXECUTIVE SUMMARY In this report, the aim is to show the process of launching a brand in a new market place as an omnichannel retail experience. This will be done by applying a variety of business research management methodologies to the market to show the benefits of launching in this marketplace and also any risks the chosen brand may face. The brand that has been chosen to launch British cosmetics accessories retailer Spectrum in Hong Kong. The cosmetics industry is currently on an all time high and the marketplace ‘instagrammable’ products and experiences is booming. The brand was born out of the desire for bright, colourful and trend-led makeup accessories in a repetitive and boring market, and has since become one of the most in-demand and Instagrammable British cosmetics brands, being valued at £12million last year. The brand would be successful as an omni-channel retailer in the chosen marketplace because of their hugely successful London pop-up, which was sought after by both Londoners and tourists alike alongside their instagrammable brand aesthetic. The demand for ‘grid-worthy’ experiences is growing, particularly in Asia and for this generation of consumers, decisions are heavily influenced and even dictated by social media. So, what better brand than one conceived on looking good on ‘the grid’.

For primary research, a survey of consumers within the target market, both in Britain and Hong Kong, weighing in on important factors of the launch. Secondary research was conducted by viewing reports, databases and news articles on the industry. This research has been integrated into the report and evidence is shown in the appendix.

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CONTENTS Introduction

Store Experience

Conclusion

04

Introduction

28 - 29

Brand Mix Proposal

60

Conclusion

05

Brand History

30

Hashtag

61

Recommendations

06

Mission Statement

31

Pop-up Store Proposal

62

Appendix

Research Management and Methodologies

32

Sogo Concession Proposal

63 - 64

Bibliography

33

Moodboard

h

34

Digital Moodboard

35

Launch Party Proposal

07

T h e F i v e W ’s

08

Retailer Description and Business Model

09

Logo Proposal

10

Strategy Canvas

30

Marketing and Social Media Objectives

37 - 42

11

Positioning Map

36

T h e 7 P ’s o f M a r k e t i n g

43

12 - 13

Four Action Framework

37

Brand Social and Digital Swot

44

14 - 15

Six Path Framework

38 - 43

R A C E M o d e l a n d H o f a c k e r ’s 5 S t a g e s

45

16 - 17

P o r t e r ’s F i v e F o r c e s

of Information Processing

46

18 19

The STP Process - Segmentation

44

T h e 6 C ’s o f O n l i n e M a r k e t i n g

20

T h e S T P P r o c e s s - Ta r g e t i n g

45

The AIDA Model

21 - 23

Ta r g e t C u s t o m e r

46

The Honeycomb Method

24

The STP Process - Positioning

47

SEO

Risk Log

48 - 49

SEO - Keyword Marketing

50 - 53

SEO - Keyword Density

54 - 55

Retention Planning

56 - 60

Data Analytics

25

Risk Log

26

Mitigation Plan

27

Contingency Plan

3

35 36

INTRODUCTION According to a report by Zion Market Research, the global cosmetics market valued at $532billion in 2017 and is expected to grow to $863billion by 2014. This report aims to show the process of launching a British brand, cosmetics accessories brand Spectrum Collections, into a new retail marketplace of Hong Kong and why it would be a profitable venture in this booming and disruptive global industry. Findings in this report are based on primary research in the form of a survey aimed at the brand’s current and proposed target audience, and further secondary research from online articles, databases and reports.

The report will cover how dierent marketing strategies, with emphasis on SEO and Social Media marketing, will benefit the retailers omni-channel approach to this venture and will identify areas that areas that are currently successful and are transferrable into a new market, but also areas that need improvement. It will also aim to show understanding of the brand’s target customer and recommend strategies on how to appeal to this consumer demographic from the original consumer journey to retention techniques.

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BRAND HISTORY collections. In early 2018, the brand was estimated to be worth £12 million (Capon, 2019). From September 2018 to February 2019, Carnaby Street in central London was home to the first physical retail space for the brand. On the ground floor, the store stocked the entire brush range, but was topped off by the incredibly ‘instagrammable’ pink cafe on the first floor, complete with neon signs, pink coffees, vegan cakes and grid-worthy decor (Capon, 2019). They further tapped into their millennial market with phone charging points. The brushes are stocked nationwide in a variety of ecommerce and bricks-and-mortar retailers, such as Birchbox, Pretty Little Thing, Beauty Bay and, perhaps most successfully, Boots. They are also shipped internationally from their Essex based warehouse and are sold through their UK, US and European websites.

The concept of SPECTRUM COLLECTIONS was conceived by welsh sisters Hannah and Sophie Pycroft in 2013. Disappointed with the lack of job opportunities in Wales, the pair decided to create their own business. Both sisters were passionate about fashion and beauty and, having realised that starting a fashion line was beyond their budget, noticed a gap in the market for trend-led beauty accessories (Mail Online, 2019). They each invested a lump sum of their saving and while continuing to freelance on the side, they worked round the clock from their garage, doing everything from packaging to photography and building their website.

Their big break came through basic PR. Whilst attending Clothes Show Live, the sisters gave their products to celebrity attendees and influencers, which gave them a wide social media coverage without any influencer fees. This generated enough profit to launch the ‘Glam Clam’. (Crowther, 2019) The unique seashell bag design and colour palette, loosely inspired by the Little Mermaid, was unlike anything in the current market. They held a successful launch party and the product was picked up on social media and by the press.

They have since launched many successful collections, such as the Mean Girls inspired ‘Burn Book’, several Disney capsule collections and their iconic ‘Marbleous’ and ‘Millennial Pink’

Hannah and Sophie Pycroft

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As for the future of the brand, following a successful campaign launch of their Disney’s ‘Mickey Mouse’ collaboration starring London influencer Chloe Lloyd in February, Spectrum announced their first cosmetics range, including an eyeshadow palette and highlighter, is set to launch in June 2019 (Spectrum Collections, 2019), having began production in their new factory in Milan. The search for a factory was a two year process, as the production must be inline with their cruelty free and vegan ideals. (Pycroft and Pycroft, 2019)

Research Management and Methodologies

MISSION STATEMENT To

by

BE BOLD AND CoLOuRFUL

and

MAKing MAKEUP FUN AND POPCULTURE LED

ADD SASS TO YouR MAKEUP BAG

whilst

BEING KIND TO ANIMALS AND THE ENVIRONMENT

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Research Management and Methodologies

THE FIVE W’S WHO SPECTRUM COLLECTIONS WHAT Make-up brushes and accessories WHERE Sogo Beauty Department, Causeway Bay, Hong Kong WHEN Spring 2020 WHY Because the makeup industry lacks bold and unique accessories, made with millennials in mind, with ethically conscious, cruelty free production.

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Research Management and Methodologies

rETAILER DESCrIPTIoN AND BUSINESS MODEL The brand’s current business model in the UK is ecommerce and wholesale.

The main sales come from the brand’s ecommerce site, however products are sold through wholesale through a number of cosmetics retailers. Some of these wholesale retailers are omnichannel, such as Boots, whereas others are also just ecommerce, such as Beauty Bay. The proposed business model for Hong Kong is a department store concessions stand and launch of Hong Kong ecommerce site, as, according to primary research, these where the preferred shopping experiences of the consumer (see appendix).

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Research Management and Methodologies

lOGo PrOPoSal For the launch in Hong Kong, the brand will use new logos. The new logos still incorporate the iconic pinks and BARON NEUE font which make the brand so recognisable, however they have a much sleeker, more luxury aesthetic, compared to the original logo.

This is better suited to the Hong Kong market which is more saturated with designer, luxury brands.

Proposed Logo

Proposed Social Media Logo icon

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Research Management and Methodologies

STRATEGY CANVAS By creating a Strategy Canvas, the brand can capture it’s current strategic landscape and understand it’s competitors through visuals. It allows the brand to see all the factors that it competes on within the industry and helps the brand visualise elements they are ahead of the competition in and where they need to improve.

The brand sits very much in the middle of the market, with a low price range but high quality products, it could easily compete with both high street and luxury products. Looking across this strategy canvas, the brand ranks fairly highly against it’s competitors, particularly on the digital elements.

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Research Management and Methodologies

POSTIONING MAP

This positioning map gives a visual representation of how the brand compares to it’s competitors, in terms of price and quality.

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Research Management and Methodologies

FOuR ACTION FrAMEWoRK Reduce…

Factors that the brand should reduce to below industry standard are: Plastic Pollution/Excess waste • The beauty industry generated 142 billion units of packaging last year, most of which ended up either in the ocean or landfill (The Independent, 2019). By ensuring that it reduces all plastic waste, or at least ensuring that everything is recyclable, the brand will be steps ahead of it’s competitors, particularly within the high street sector. This will be done by reducing the amount of plastic packaging and ensuring that recycling systems are put in place where possible. The brand could even consider taking consumers old plastic products and recycling them in exchange for a voucher/incentive. This would further promote reduction of waste across the market not just within the brand.

Emissions • The brand’s warehouse is in the UK, so products would have to be shipped to Hong Kong. One way of reducing emissions would be shipping by sea, rather than by plane.

This would be more time consuming and would require more planning, but would be more environmentally friendly.

Raise…

Factors that the brand should raise well above industry standard are:

Ethical and Cruelty Free production • Although many brands, SPECTRUM COLLECTIONS included are well ahead of the game with maintaining ethically produced products, the brand should strive for a completely ethical and sustainable production process.

This would included finding alternatives for the plastic in their products and reducing waste from things like packaging etc

Maintaining an wide and aesthetically pleasing product range • Again, the brand is way ahead of their competitors on this factor. Most brand’s brush ranges are either limited or very plain and boring in comparison, however they must stay ahead, as similar concepts are beginning to arise in competitors.

Ensuring that products are easy to use for everyone • Brands are beginning to consider the usability of their products and whether everyone is able to use them.

Products aimed at users with motor disabilities or targeted towards people who don’t fit into the stereotypical young female user category. The brand should catch onto this trend as it is beginning to take off and currently has a very small market.

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Research Management and Methodologies

FOuR ACTION FrAMEWoRK Create…

Factors that the brand should create that the industry has never offered are:

Personalisation • The cosmetics industry lacks product personalisation whether that is in the ingredients or usability of products, customisable sets of products or simply the look or design of a product. Due to the ever popular trend in simple makeup looks or ‘no-makeup-makeup’ (stay, 2019) consumers don’t need to spend on entire brush sets containing brushes that they potentially won’t use. The brand should offer customisable sets, where consumers can choose what brushes they need and create a bundle (with a set amount of brushes and set price) that suits their personal makeup routine. The brand could also offer product personalisation, for example the consumer can choose their own product colours. This would tie into the brand’s USP of bold and colourful products but on a more personal level.

Website AI • As this product is targeted at the everyday user, understanding how to use a wide variety of makeup brushes may be daunting.

The brand should consider investing in more AI on the website, for example chatbots who can explain how to use the products or interactive tutorials. This would be an interesting and immersive technique that would potentially drive consumers back to the website after purchasing a product.

Eliminate…

Factors within the industry that have been competed on in the past but the brand should eliminate are: Exclusivity • The cosmetics industry has primarily only targeted women and, unfortunately like the fashion industry, has underrepresented consumers who do not fit into their stereotypical ‘white, beautiful women category’. The brand should strive to represent all people, regardless of their race, gender, sexual orientation etc, in their marketing campaigns and eliminate the stereotypes.

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Research Management and Methodologies

SIX PATH FrAMEWORK ALTERNATIVE INDUSTRIES

Within the cosmetics industry, SPECTRUM COLLECTIONS are currently only retailed on their own Ecommerce site and through wholesale. It’s main function within the industry is to make the user feel empowered, confident and good about themselves and their appearance. The main alternative industry to the cosmetics industry is the fashion industry, however other alternatives are the fitness, well being and lifestyle industries.

Customers may trade across these industries on a number of factors. Price is an important factor to consider. Because the fast fashion industry is growing so quickly, consumers can purchase decent quality clothes that will make them feel good about themselves for an extremely low price.

The brand should ensure that it is competing within all these markets in order to succeed.

Moving the brand into a department store concept will mean that the brand will be retailed closely with these alternative industries, however, it will stand out because of it’s reasonable price, quirky pop culture collections and high quality.

STRATEGIC GROUPS WITHIN INDUSTRY

SPECTRUM COLLECTIONS ranks within is a wide variety of cosmetics brands and some of the strategic groups within this industry are designer/ luxury cosmetics or high street cosmetics.

Consumers may trade up to the higher strategic group of luxury cosmetics, because of the product being branded with a well established brand name, or the assumption that, due to having a higher price point, the product will be better quality, or the guarantee that the production of the product was to the highest quality and of an ethical standard, for example, no animal testing. However, some of these factors are not exclusive to the higher strategic group and consumers may trade down to the lower strategic group because they seek more affordable and accessible products. Most products in the lower strategic group are ethically produced and generally the quality of the products is reflected in their points. However, across all strategic groups, there is a lack of diversity in the aesthetic of the products - everything looks very similar.

The brand fits best into the lower strategic group of high street cosmetics, due to it’s price point, but it breaks out of it’s strategic group and is an compelling competitor in both groups. Not only is the quality of the products extremely high and maintains an ethical and cruelty free production process, the brand’s products stand out due to their bold, colourful and quirky aesthetic.

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LOOK ACROSS THE CHAIN OF BUYERS Within this industry, the target buyer groups tend to overlap. In general, the purchaser also tends to be the user. Cases in which they do not overlap are perhaps when the purchaser buys the product as a gift, or the user is an industry professional using the product. Overall, the industry tends to focus on the user, because although they are generally also the purchaser, they must have a need to use the product first. However, once they have become faithful to a product, particularly within the cosmetics industry, it is difficult to make them try something new. So, if the brand should shift it’s focus to the influencer buyer group. The influencer may come as industry professionals, beauty bloggers, makeup artists or journalists. Currently, SPECTRUM COLLECTIONS focuses mainly on the user - the products are fun and easy to use and available for everyone. However, if the brand shifted it’s focus onto the influencer, for example targeting their products to bloggers and well known MUAs, the products would reach a much wider audience and gain more exposure. This would add new value to the brand because it becomes associated with professionals and people who know what they’re talking about. Due to their status, these influencers are more likely to use products from a higher, luxury strategic group. By using SPECTRUM COLLECTIONS products alongside these brands and well established names will also unlock new value.

Research Management and Methodologies

LOOK ACROSS COMPLEMENTARY PRODUCTS AND SERVICE OFFERINGS

SPECTRUM COLLECTIONS products are ‘value adding’ products - the brushes assist in the application of makeup. A user must first struggle with their makeup application or wish to find something to make the process easier or that will better help them achieve their desired look, before they seek to buy the product. Then, they must use the product alongside the primary makeup product.

After they’ve used the product, hopefully they have achieved their desired makeup look.

One pain point of this process may be that the user does not know how to use the product to it’s full potential or may not understand which brush is best for each part if the makeup application process. This can be eliminated by simply adding a brief explanation or ‘how to’ on the product packaging. Potential complementary service offerings could be online tutorials on how to use each brush and what makeup products they should be used with.

The obvious complementary product for this brand is the makeup itself. The brushes cater for an enormous variety of makeup products but the user either has to own that product already or actively have to go and purchase it separately. Having it’s own makeup line would eliminate the pain point for customers having to search elsewhere for their primary product, However, this is something that the brand are due to introduce to the UK this year, thus eliminating this main pain point.

LOOK ACROSS THE FUNCTIONAL OR EMOTIONAL APPEAL TO BUYERS

The cosmetics industry mainly competes on a functional appeal. It encourages users to spend on products that fulfil their purpose and users will generally stay faithful to those products. There is some competition on an emotional appeal, particularly in the way in which certain brands make users feel and the emotional appeal of well established brand names, but competition is fairly even between luxury and high street products as the quality on the high street improves. SPECTRUM COLLECTIONS products are stand out products because they compete on both functional and emotional appeal. The products are high quality, affordable and easy to use, but their collections and collaborations are well invested in their users emotions. Using makeup is a process associated with growing up, but the brand uses collaborations that will remind it’s current audience of their childhood, for example the Disney Collections and the ‘Mean Girls’ collections. Users are immediately more invested in the product because they can associate them with the pop culture of their childhoods.

Generally, makeup brushes have little emotional appeal other than the brand name they carry. By adding more emotional appeal to the products, such as changing the appearance of a usually bland product into something that evokes feeling in their user will add more value to the product. EDIT

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LOOKING ACROSS TIME The brand should focus on creating reactive strategies so that it can adapt efficiently to an ever changing environment and external trends. First and foremost, development of cosmetic technology is beginning to shape both large, established brands and newer, independent brands. The brand should be prepared to welcome this. Makeup brushes may be more resistant to technological changes, however, the release of products such as the Magnitone Vibra-Sonic BlendUp Makeup Blending Brush, an electric brush that both blends makeup and stimulates the skin (Get The Gloss, 2019) will be game changers for the industry.

Fabrizio Freda, CEO of Estee Lauder, noted that the last time he spoke in conference in 2010 there was no Instagram. Now there are 700million Instagram users. He noted that the shifting of channels was ‘profoundly changing the industry’ (Forbes.com, 2019). The brand should utilise social media to track trends and be sure to trend forecast regularly.

The development of technology and growth of social media are the trends that will have most impact on the industry. The younger generation of consumers seek experiences and are more willing to experiment. As it grows, the brand should take note of emerging and independent brands, rather than the established brand counterparts, as consumers are now more likely to swap and try new brands that are more value focused. The brand should be prepared to react quickly to the trends that emerge alongside these new brands.

Research Management and Methodologies

pORTEr’S FIVE FoRCES SUPPLIER POWER Due to the vast amount of unique market players and huge supply and demand for diverse products, the bargaining power of suppliers in this industry are low. Consumers have the power to influence the market price, rather than the suppliers. Also, as more suppliers begin to emerge to cater for the growing industry, the bargaining power of suppliers automatically decreases, as there are so many alternative for consumers.

However, it requires time to find suppliers that The brand has little ability to substitute suppliers, due to it’s niche product and materials, such as the taklon hair bristles and wooden handles.

BUYER POWER

Due to the variety of competition and availability of products in this industry, consumers are in the position to manipulate brands into changing their price range or improving their product quality with the threat of finding a substitute. This is a challenge for brands at both ends of the consumer spectrum.

Because of it’s affordable price range, and the fact that it sits very much in the middle of all it’s competitors, the brand has a competitive edge over it’s competitors, because it appeals to a much wider audience. Those who cannot afford high quality, luxury brushes have access, but also those who can afford them have access to a cheaper, but equally good quality product, with a more interesting design concept than it’s competitive counterpart. The brand has an average order value of between £29.99 and £39.99, an extremely affordable price point.

The cosmetics industry is appealing to people of all ages, lifestyles and social backgrounds. However, the seller concentration in developing countries and regions is low, because few brands have invested in developing products for this market segment, choosing to focus on the more profitable, developed countries. By focusing on this neglected buyer segment, brands will have less seller concentration and thus, less competition (UKEssays.com, 2019)

COMPETITIVE RIVALRY

Whilst the cosmetic industry is extremely saturated, the brand has 10 main competitors, as it sits very much in between the high-street and luxury segments of the market. The brand has a much higher product quality than it’s competitors in the lower, high-street end of the spectrum, and generally has better quality of production. The price range is not drastically higher than these competitors either. The quality of the products is high, comparing similarly to the more luxury, higher end competitors. However, the brand has a competitive edge against them due to it’s affordable price range. The brand also has cutting edge over most of it’s competitors due to it’s quirky, bold and colourful designs, whereas most of the market is made up of plainer, simpler and more monotone designs, particularly in the higher end products. Customer loyalty in the cosmetics industry makes stake exceptionally high for less established brands, as customers remain loyal to brands and more and more brands attempt to establish ‘cultstatus’ (Kapost Blog, 2019). However, due to it’s innovative design concepts, popularity on social media, understanding of it’s millennial market and high quality, affordable products, the brand is well on it’s way to cult status.

The main exit barrier in this industry is that the high costs of production and research mean that some brands may never make enough profit to meet the initial costs.

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Research Management and Methodologies

THREAT OF ENTRY

There is a relatively low threat of entry in the cosmetic industry as the entry barriers are fairly high. The main threat that could potentially discourage new entrants is the competition from well established brands. These brands dominate most of the market share and due to their entrenched roots within the industry, commandeer generations of loyal customers, who are unlike to deflect to lesser known brands. According to the L’Oreal 2018 Annual Report, they made an estimated over €200bn in sales and had a 12.5% share in the beauty market in ecommerce alone (L'Oréal Finance: Annual Report 2018, 2019) and

there are also huge costs demanded when entering the industry . As the cosmetics industry advances quickly with new technology, it takes a great deal of time and money, with plenty of research, expertise and resources to start a unique product. Cosmetics chemists Valerie Patton and Perry Romanowski estimated that, when combining the average costs of product development, business and marketing, that a cosmetics start-up would need between $10,000 to $20,000 (£7840 to £15,680) to invest up front, plus an extra $5000 (£3920) for each additional product (Patton and Romanowski, 2019).

THREAT OF SUBSTITUTION

Within the cosmetics industry, there are many product substitutes due to the density of competitors. The brand must ensure that the price and quality of their product is competitive to prevent consumers from finding a substitute. Consumers may also purchase substitutes as they become more aware of the impact some brands have on the environment, and begin to seek more ethical and sustainable alternatives. The brand currently stands out compared to it’s competitors, as it excels in all these factors; an affordable ‘high-street’ price range for high quality, ethically produced products. The brand stands out as the substitute for many brands currently market, as products with similar price ranges are poor quality or unethically produced, and products of a similar or better quality are more expensive.

pORTEr’S FIVE FoRCES 17

Research Management and Methodologies

THE STP pROCESS Segmentation GEOGRAPHIC Customers will be mostly those who live within Hong Kong. Due to it’s central location and being the ‘retail heart of Hong Kong (Discoverhongkong.com, 2019)’, customers living in the suburbs have easy access via a variety of public transport links. However, many consumers are also tourists. In March 2018, Hong Kong received 4.99 million tourists, with three quarters of them being from Mainland China (South China Morning Post, 2019). Many of these visitors are short haul travellers or day-trippers. Last year, a high-speed train linking Beijing and Hong Kong opened, cutting the travel time between the cities significantly (Vogue Business, 2019). Also, the 55km Hong Kong - Zhuhai - Macau bridge-tunnel opened last year, linking Hong Kong with cities in Southern China (En.wikipedia.org, 2019) The consumer will be urban rather than rural.

DEMOGRAPHIC The consumer group will consist of mainly women between the ages of 16 - 28. Occupational groups of the consumer will be students, young professionals, digital influencers. Consumers will either have their own income, or will still live with providers bringing in a household income. The consumer income will be average - the average salary in Hong Kong being HK$370,922 (GBP£36,809.85) (Payscale.com, 2019) The consumers are mainly part of Hong Kong’s middle class.

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Research Management and Methodologies

THE STP pROCESS Segmentation PSYCHOGRAPHIC Asian millennials generally opt to focus on their quality of life and experiences, rather than owning property or cars and spend more on eating out and leisure activities (Medium, 2019). They value travel, and seek desirable, customised packages, having done their research mainly online (Traveldailynews.Asia, 2019). As well as research, they are increasingly more likely to share their experiences online, through social media, blogging etc (Medium, 2019). More and more Asians are also choosing to receive a higher education. In 2016, the amount of Hongkongers in HE had nearly doubled in one decade (South China Morning Post, 2019)

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BEHAVIOURAL There is huge income inequality in Hong Kong, the largest in 45 years. (South China Morning Post, 2019) Despite this, Generation Z and millennials are still the driving force of impulse buying. Asian millennials are consistently spending more and saving less and due to soaring property prices, 63% of 22 to 29 year olds live with their parents, therefore are putting off the commitment of saving for property and spending more on leisure activities (Huffpost.com, 2019) Due to their affiliation with social media, Generation Z are increasingly more likely to make impulse purchases, with 70% of consumers between the ages of 18 and 22 interested in buying directly off social media. This generation of consumers have a far greater sense of identity and are more technologically savvy and convenience driven than previous generations of Asian consumers. Asian millennials also seek instant gratification, and prefer loyalty schemes that offer discounts and immediate rewards as opposed to privileges (MasterCard Social Newsroom, 2019) Research Management and Methodologies

THE STP pROCESS Targeting The brand’s primary target market is creative, bold and connected women, aged between 16 - 25. This demographic makes up roughly 8% of Hong Kong’s overall population (Cia.gov, 2019). This crossover between the demographic cohorts of Millennials and Generation Z gives the brand a wider audience with similar values and demands.

The target market coverage for this campaign is is concentrated or niche targeting. By focusing on the brand’s market niche of providing bold, sassy makeup accessories with pop culture emotional appeal, combined with it’s competitive price range and high quality products, the brand is ideally targeted toward the aesthetically, or ‘instagrammably’ driven, ethically conscious millennial and generation z consumer market.

Also, western high street brands are quickly replacing the demand for, the once highly coveted, luxury items in Hong Kong. Mainland Chinese tourists are spending less on luxury goods (The Business of Fashion, 2019) and, due to a period of slow poor sales, many luxury retailers are scaling back. In 2017, Ralph Lauren’s 20,000 sq ft flagship store in Causeway Bay closed, but brands such as H&M, Whistles, Sandro and COS began to open all over the city (South China Morning Post, 2017). This opens up a target market within Hong Kong’s next aspirational middle class consumer generation, who are more likely to spend on affordable, western brands.

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Research Management and Methodologies

TARGET CuSTOMER The target customer in the Hong Kong market are the typically women aged between 16 and 25. This is a middle good middle ground of both millennial and generation z consumers. The consumer group will expand across social classes, due to the brand’s medium price point and inclusive brand values.

The target customer will be both Hong Kong residents and tourists, typically from mainland China, who travel to Hong Kong to shop. The brand will ensure that it segments it’s overall buyer groups into these two main categories in order to market to consumers relevantly. The brand is not exclusive and will target consumers from all educational backgrounds and professions. The product is for the ‘everyday girl’.

As mentioned i in Research Management and Methodologies, particularly in the STP Process, this consumer group are saving less and spending more. They are experience driven, rather than commodity driven like past consumer generations, so the brand must ensure that interacting and shopping with them is a whole experience that consumers want to be part of, not just a transaction.

This consumer group is technologically savvy and their choices are influenced heavily by social media, particularly Instagram.

The brand aim’s to target creative and bold women, who value aesthetics and appearance, but can have fun and don’t take themselves too seriously. They are always on trend and love to express themselves through fashion and makeup.

For better understanding of the target customers, I have created two consumer profiles…

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Research Management and Methodologies

TARGET CuSTOMER Hong Kong Resident Consumer Profile and Moodboard Wei Chang is 20 and lives in West Kowloon neighbourhood with her parents. She currently can’t afford to move out due to soaring rent prices in Hong Kong. She has always been interested in fashion and and beauty and enjoys following bloggers and influencers on Instagram. She worked hard at school and is currently studying Fashion Promotion and Imaging at the Hong Kong Design Institute. Her goal is to work for Vogue Hong Kong after she graduates.

She is currently not saving for a deposit on her own place, because she likes to spend her money on trying new things and new experiences and documenting them on her instagram. She particularly loves experimenting with new beauty products and loves to share them on social media, so is particularly drawn to ‘instagrammable’ products.

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Research Management and Methodologies

TARGET CuSTOMER Tourist Consumer Profile and Moodboard Ah Lam Young is 23 and grew up in Shanghai with her wealthy parents. Her father is a British expat and her mother is from a wealthy family from Singapore. She was born in Singapore, but spent lots of her life travelling for her fathers work. She spent her childhood at international schools and decided to study abroad. She has a degree in Fashion Marketing from London College of Fashion. Since graduating, she has worked in Fashion PR for a year in London. During her time in London, she immersed herself in Western pop culture and particularly loves cult classic and chic flicks movies. She has recently moved back to China and is planning to set up her own Social Media agency. She loves to travel and experience new things. She does most of her research for destinations and experiences online, particularly through Instagram. She enjoys socialising with her friends, eating out and visiting new places. She loves visiting Hong Kong to shop and particularly loves shopping British high street brands. She has a large Instagram following and loves creating content to do with fashion, beauty and travel.

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Research Management and Methodologies

THE STP pROCESS Positioning Also, 63.6% of respondents to a survey conducted for primary research said they preferred shopping for beauty products at a department store over any other shopping experience. The next preference was online (See Appendix)

Within the autonomous territory of Hong Kong, the brand will launch in major department store, Sogo, located in the city’s retail hub Causeway Bay. Causeway Bay operates the world’s most expensive retail space, after overtaking New York City’s 5th Avenue, averaging at roughly $2,671 per square foot per year (Icsc.org, 2019). This is a more cost effective move for a small brand, and also means that more budget spare for factors such as the aesthetic and ‘instagrammability of the retail space, which is extremely important to the consumer. Prior to the release of the product in Sogo, the brand will open a pop-up concept store in a Hennessy Road/Ye Wo Street location. Last year, footfall increased in Sogo by 7.1%, according to parent company Lifestyle International.

Schemes such as the Sogo Rewards Programme have contributed hugely to store growth, with membership rising by 100,000 over the six-month period, reaching 480,000 and members accounting for 51.5% of in-store spending (Inside Retail, 2019).

Because of the brand’s British roots, launching as a concession in a department store will give the brand a competitive edge, because it will be alongside similar and recognisable Western brands, such as Clinique, Revlon, Charlotte Tilbury etc. Mixed in amongst these popular and wellestablished brands, the brand will stand out due to it’s lower price point and unique aesthetic.

The brand is suited to Hong Kong, due to it’s cruelty-free and animal testing laws. Whilst animal testing is not banned in Hong Kong, it is not mandatory for all foreign products, unlike the rest of China (Combs, 2019).

The is also an increasing demand for Vegan products in Hong Kong and this movement is accelerating rapidly due to buzz on social media. The brand’s ethics and values will stand out amongst many of it’s competitors, particularly those native to Hong Kong.

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Research Management and Methodologies

RISK LOG By deploying eective risk management strategies, the brand will be able to identify, mitigate or possibly avoid any risks all together when needs be. In some situations, the brand may have to accept risks, but by identifying any potential risks in advance to the launch will help in preventing, avoiding or transferring the risk.

A risk mitigation plan is designed to minimise or eliminate the impact of risks. First the brand must identify the potential sources of risks, such as technical or client based risks. From that, they can identify any potential risks involved with the process and work out ways to mitigate them.

A contingency plan is designed to help the brand respond in the event of a risk event taking place.

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Risk Management

Mitigation Plan

RISK LOG 26

RA

RISK AVOIDANCE

RS

RISK SHARING

RT

RISK TRANSFER

RR

RISK REDUCTION

Risk Management

27 Risk Management

Contingency Plan

RISK LOG

BRAND MIX PrOPoSAL

Millennial Pink Collection

Marbleous Collection

Crystal Chic Malachite Collection

Disney’s Snow White ‘Mirror Mirror’ Collection

Mean Girls ‘Burn Book’ Set

Disney’s Ariel Shell Brush Set

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Zodiac Collection

Disney’s Mickey Mouse Set Store Experience

BRAND MIX PrOPoSAL According to research conducted in a primary research survey, this selection of products came out as most popular amongst consumers (see appendix). Also, 63.6% of consumers confirmed that they preferred to buy their makeup brushes in sets, rather than individual products (see appendix), so only product sets will be available in-store (individual brushes from the Millennial Pink, Marbleous and Malachite collection will be available to purchase individually online, as per the UK and US sites).

This variety of products and collections caters for a much wider audience than limiting products to one collection, particularly as consumers will have an emotional connection with at least one of the capsule collections.

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Store Experience

HASHTAG The brand seem to have most success from using simple, brand name related hashtags, such as simply #spectrumcollections or #spectrumbrushes. For their pop-up store in Carnaby Street, London, they didn’t bother with a hashtag and simply encouraged users to use their custom geo-tag ‘Spectrum Cafe’ to take their pictures.

For this launch, the brand will encourage users to use

#spectrumhongkong when posting images as this will separate images from users posting in other locations, but is also on brand. There will also be a custom geo-tag for the popup store for users to tag their images. this will be ‘Spectrum Bar-throom’.

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Store Experience

Pop-UP STORE PrOposal Prior to the brand’s launch in Sogo, there will be a pop-up concept store in Causeway Bay near the department store. The pop-up will echo the brand’s hugely successful London Carnaby Street pop-up which ran from August 2018 to February 2019, which attracted Londoners and tourists alike. The concept store will run for approximately 6 weeks. Holding a pop-up prior to the launch in Sogo is an excellent way of experimenting in the new market place, creating brand recognition and getting to know the customers, whilst also being cost effective (Event Architecture, 2019) According to the survey conducted in the primary research stages, 72.7% of respondents had attended a pop-up/concept promoting cosmetics (see appendix), and out of the respondents who hadn’t, 50% of them would attend an event had they walked past one/seen one advertised (see appendix).

Instagrammability is one of the most important factors millennials and Generation Z consider when choosing a location. In fact, in 2018, the dictionary added the adjective ‘Instagrammable’ to its ranks, a word to describe something that one deems worthy of sharing (Time, 2019). Instagram is affecting this consumer generations travel choices, what brands they associate with, where they eat and many more factors more than ever. According to a study by Dana Rebecca Designs, 72% of consumers have made a fashion, beauty or style-related purchase after seeing a product on Instagram (Retail Dive, 2019).The brand was built on the gap in the market of a lack of bold, colourful and trend-led make up accessories and have since gone to become an Instagram ‘It-Brand’, and the brand founders themselves call Spectrum an ‘instabrand’ and aspire to being the ‘world’s most Instagrammable makeup brushes’ (Mtv.co.uk, 2019). #spectrumcollections has been tagged 24,600 times on Instagram, and #spectrumbrushes a further 37,200. Instagrammability must be the foundation for any store design for the brand. The hugely successful Carnaby Street, London pop-up was hailed ‘Instagram Heaven’ by Cosmopolitan’s Beauty Editor Laura Capon, and the Hong Kong pop-up must follow suit. The most popular part of the pop-up was the ‘grid-worthy’ Spectrum Cafe, and pink, vegan oasis for Instagram lovers.

For the Hong Kong pop-up store, I propose a Spectrum Pink Bathroom themed bar, cafe and store, or the ’Bar-throom’. It will run over two floors, with a store on the ground floor and the cafe/bar on the first floor. The store will run on the product capsule collection concepts, with a corner of the shop decorated accordingly to it’s product.

In the Bar-throom will be based around the current on-trend colour palette of forest green with the iconic Spectrum millennial pink. It will have a luxe, British feel, with comfortable, velvet seating and features such as a pink clawfoot bathtub, filled with pink and green ‘bubbles’. The bar will serve a selection of vegan coffees and cakes during the day with the option of a ‘pink’ afternoon tea, á la Sketch London (see top-left of moodboard) however in the evening, alcoholic beverages will be served, with a menu of pink cocktails and wines. There will be plenty of greenery and flowers.

The Bar-throom will house many instagrammable features, such as a flower wall, the clawfoot bath filled with sparkly ‘bubbles’, products will be displayed on shelves in aesthetically pleasing #shelfie standards, a ‘vanity mirror’ Photo Booth where users can choose to immediately post to their social media using the hashtag and geo-tag, or have emailed to them by signing up to emails on the spot. There will be a pick ’n’ mix wall, some tubes willed with sweets, some filled with brushes (for display purposes, not for purchase).

There will be some digital elements in-store, however the main focus is instagrammability. Rather than a traditional counter service, the pop-up store will be cashless and use iPads for consumers to make purchases. It will be cashless because the store is designed to be mobile led and encourage consumers to use their mobiles and devices for everything, from taking pictures to paying for product. According to a study by Loup Ventures, 43% of iPhone users use Apple Pay, amounting to roughly 383 million users (AppleInsider, 2019). Also, for a brand that is digitally led, this creates an omni-channel retail experience and mimics bringing online shopping into a brick-and-mortar environment. Members of staff will have iPad’s and card machines from which consumers can pay on the spot, rather than having to queue. They can then either opt to have their products delivered to them at their homes, or wait collect their products.

This also means that displays are not having to be constantly restocked as they will only have display products. Products will be packaged behind the scenes, and with be given to customers in a millennial pink bag featuring the Hong Kong logo, pop-up address, hashtag and a QR code that, when scanned, takes the user to the brand’s ecommerce site. The bag’s will have a personalised name tag and inside each shopper will receive a postcard with a message or quote, (and the hashtag) giving it a personal touch and adding value to the experience. The aim of this is to encourage users to share images of the ‘grid-worthy’ bag in-store, to create a buzz without even showing the product. There will also be iPad’s on which users can enter their makeup routine and and it will determine what brushes are appropriate for their routine. It will tell the consumer what design concepts the brush comes in and where the sample products are located on the shop floor. Users can then email or Airdrop this to themselves and either show a member of staff or find the products online. As mentioned previously, there will be a vanity mirror Photo Booth. Users can opt to digitally send the photo straight to their social media, posting it with the hashtag and geo-tag, email it to themselves or print. Printed photos will feature the hashtag at the bottom of the photo strip, along with a website QR code. The main digital touchpoint will be two digital, interactive ‘tool school’ mirrors, playing on the brand’s popular Instagram feature, on which consumers can choose a brush and the mirror will show them what motion is most effective when applying makeup with that brush and how to best achieve their desired look. This is similar to the Sephora Visual Artist Mirrors or the MAC virtual try-on mirrors.

For reference, please see moodboard.

31

Store Experience

SoGO CONCESSion PrOposal The Sogo Concessions stand will have similar themes to the pop-up and will be equally as instagrammable. It will be set up in a similar bar-like fashion, with velvet bar stools and a marble countertop, in the same forest green and millennial pink theme. Again, there would be plenty of greenery and flowers, It will have the same omni-channel retail experience of only having sample products on the counter, ordering through an iPad and then having the option to wait for your products to be packaged in the Spectrum bag (same as in pop-up) or have them delivered to your home. It is essential that the brand continues to have an instagrammable aesthetic, so behind the counter, the back wall ill be a flower wall, featuring the iconic Spectrum ‘My Brushes are Better than Yours’ slogan in a neon sign, one of the velvet sofa’s will be available for customers who are waiting to receive their products etc. The concessions stand will aim to be a downsized continuation of the aesthetic of the pop-up. Some digital touchpoints continued from the pop-up would include iPad system of finding the correct brushes to suit a consumers beauty routine and one of the interactive mirrors showing consumers how to use their brushes. However, all the members of staff will be experts on the brushes and can offer one on one tutorials for the customer. The Sogo concession will be mainly driven by quality of experience and building relationships with clients, whilst still pushing the instagram-worthy vibes.

32

Store Experience

MoODBoaRD

33

Store Experience

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Store Experience

LAUNCH PARTY pROposal The launch party will be held at the pop-up store on the day it opens. Brand founders Sophie and Hannah Pycroft will be hosting. It will be an evening event, with pink cocktails being served at the bar and Hong Kong born DJ May Kwok providing music. It will be open to the general during the late afternoon/early evening, however the evening drinks party will be invite only. First and foremost, the brand will invite press and influencers. Beauty editors from women’s magazines such as ELLE Hong Kong, Hong Kong Vogue, Cosmopolitan HK, Jessica Code will be invited. Beauty, fashion and lifestyle influencers such as @jumbosang, @maggie_stadelmann and @vivianchannelle will be invited and cover the event on their own Instagram’s via stories to create buzz.

Industry professionals and makeup artists such as Karen Yiu, Gabbie Lee and Megumi Sekine will also attend, so that the brand gets awareness from the professional makeup community, not just the everyday user.

All the Instagrammable features of the pop-up will be in action, and influencers and attendees will share these all on their socials using the hashtag and geo-tag.

As for the the brush concepts, each concept will have a two members of staff dressed in uniform to represent their concept, for example the staff at the Mean Girls concept will be dressed as Regina George and Cady Heron and at the Disney concept, staff will be dressed with like Minnie Mouse, with ears and the red spotty tutu. Products will be available for attendees to order to their homes via ordering through the iPad system.

Attendees will be encouraged to sign a ‘Burn Book’ guestbook, in which they can write about their favourite products etc. At the end, attendees will receive a gift bag, with a brush of their choice, a ‘how to’ brush information card, sweets and a Spectrum brush bag.

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Kong

Store Experience

7 p’S OF MARKETING PRODUCT The products are bold, unique and trend-led makeup accessories, unlike any other products in the market place. Made from high quality, vegan and cruelty free materials, the product provides competitive edge for both it’s luxury and high street peers. Featuring many recognisable and iconic capsule collections alongside it’s iconic brand colours, the brand should be a staple in any beauty lovers makeup bag.

PLACE The products will be retailed in an omni-channel model. It will be retailed online on the brand’s Hong kong based ecommerce site, where the customer will receive the products via delivery and as a concession in the department store Sogo in Causeway Bay, Hong Kong. This gives consumers the option of seeing a product before they purchase it.

PEOPLE The staff will be experts on the brand, whilst aiming to make the experience for consumers as memorable and as easy as possible. Staff will receive training on how to use all the products so that they can answer any queries customers may have, or just give general advice on product usage. The brand’s founders should be at the forefront of the campaign, creating content, sharing behind the scenes and generally getting involved. This will give the brand and exclusive, community feel.

PRICE

PROMOTION

After much consideration, it was decided that the price point would remain the same. As was found in primary research and has been previously discussed, Asian consumers are now more drawn to affordable, Western high-street brands, rather than their luxury counterparts. The brand’s high quality products at an affordable price point is one of it’s USP’s and should be taken with the brand to this new market place.

In the run up to the launch of the brand in Hong Kong, the brand will use promotional techniques, such as offering welcome discount codes with email signups. Whilst most of the brand’s promotion will come from creating a buzz on social media (prior to the campaign and during the run of the pop-up) and through paid ads. The brand will also utilise traditional marketing strategies with press and magazine coverage.

Target Market PROCESS

The processes in which products will be delivered to the customer will take an omni-channel approach. In-store transactions will not be a traditional counter services, rather, customers order their products digitally and either choose to have them sent to their homes or packaged and collected. The brand will offer easy returns and refund processes, along with a smooth delivery process. The aim is to make the customer’s experience and buying process as easy and efficient as possible.

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PHYSICAL ENVIRONMENT The physical environment of the launch will be the pop-up store. This will be a bricks and mortar meets online process, moving away from the traditional retail experience to a more luxe, omnichannel process. The pop-up will focus on the customer’s experience, rather than selling products. The aim is for the customer want to share the popup store on socials and talk about their experience.

Marketing and Social Media objectives

BRAND SOCIAL AND DIGITAL SWOT ANALYSIS STRENGTHS • • • • • • • • • •

•

Brand image thorough throughout channels

Engaging, interactive and relatable content - more personal then professional.

Uses interactive features effectively such as Instagram stories, hashtagging etc.

Omni-channel shopping experience Utilises Instagram and Facebook shop features.

Brand engages well with their consumer regularly responding to comments, sharing user generated content (UGC) etc.

Educational features - ‘Tool School’ (brush tutorials).

Intimate and personal - consumers know who the founders of the brand are and what they do, plenty of behind the scenes.

Plenty of video content, which is received well by consumers.

Website is effective, easy to navigate, highly responsive to mobile and very eyecatching.

Founders run a blog on the website allows the consumer to get to know the people behind the brand (and good for SEO!)

Points based loyalty and refer a friend scheme on site.

WEAKNESSES

OPPURTUNITIES

• • •

• •

Low engagement rate of 0.6% should aim for at least 3%, particularly on such an active account.

Platforms sometimes lack links, for example, the blog isn’t pushed on social channels or the Instagram ‘Tool School’ isn’t on the website.

Content can sometimes be a bit disjointed - could be more thematic.

Loyalty scheme not advertised anywhere other than site.

• •

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THREATS

Brand ambassadors - The brand uses plenty of UGC and regularly reposts, however having some consistent brand ambassadors may give the consumers something more personal to build a relationship with. The brand has used influencers in the past, but it wasn’t pushed on socials and could easily have been missed.

More AI features on ecommerce site, such as chatbots, speech or photo recognition etc

More loyalty schemes - brand ambassador schemes such as ASOS Insider.

• •

•

Potential for negative feedback on socials - must be monitored and dealt with effectively.

The brand can be very personal and intimate with it’s social audience, which is very on trend with it’s target market. However, this may put of potential consumers who find this style of social media marketing irritating or invasive.

Will Instagram stay on trend - the brand is very much focused on this platform and the ‘Insta-aesthetic’, but in an ever changing digital environment, they must be prepared to switch it up.

Marketing and Social Media objectives

RACE MODEL Using a RACE Model will help the brand structure their digital strategy more efficiently. It also give layout the brand’s KPIs in a way that makes them easy to understand and tackle.

Understanding KPIs is important because they assist in tracking the overall success of a campaign and help monitor any issues that arise need to be dealt with.

On the UK site, 6.7% of traffic comes from social. As the brand is an Instagram focused brand, with 27% of social traffic coming from this channel (SimilarWeb, 2019), the brand can afford to aim higher and above industry averages in their KPI’s aimed at Instagram.

However, entering the new market means that the brand will have less exposure in terms of SEO, referrals, display ad campaign etc in Hong Kong, so the brand should have more realistic goals for achieving KPI’s in these areas.

Reach

Customer Exploration Stage. Comes from Search Engines, social channel, third party blogs etc. The purpose of this stage is to grow the brand’s online audience.

Act

Customer Decision Making Stage. Comes from ecommerce site, blog, social channels, community and interactive tools etc. The purpose of this stage is to encourage brand interactions and leads by being worth finding.

Convert

Customer Purchase Stage. Comes through the ecommerce process, product, price and promotion.

The purpose of this stage is to increase online and offline sales through optimisation, capitalise on marketing and drive conversion.

Engage

Customer Brand Advocacy Stage. Comes from brand advocates. The purpose of this stage is to build customer loyalty and advocacy and encourage repeat purchases.

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Marketing and Social Media objectives

HOFACKER’S 5 STAGES OF INForMATION pRoCESSING Hofacker created the five stages of information processing with the aim to assist digital marketeers consider who well their digital strategies communicated value to website visitors.

The five stages are as follows…

Hofacker’s Five Stages can be applied to the brand’s RACE model in the form of KPI’s. Each of the stage’s fit’s into the race model like so…

Exposure Attention Comprehension & Perception Yielding and Acceptance Retention

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RACE

HOFACKER

Reach

Exposure

Reach

Attention

Act

Comprehension & Perception

Convert

Yielding & Acceptance

Engage

Retention

Marketing and Social Media objectives

REACH

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Marketing and Social Media objectives

ACT

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Marketing and Social Media objectives

CONVERT

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Marketing and Social Media objectives

ENGAGE

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Marketing and Social Media objectives

SIX C’s of ONLINE MARKETING 6 C’s

Customer benefits provided by online channels

Competitors

CONTENT

The website provides concise and relevant product information that is easy for the user to find. The content is eye-catching and very on brand. There is value-adding content in the blog, as it gives users a chance to see behind the brand. However, there are no interactive service tools or videos on the site. This is something the brand should utilise in the future.

Most of the brand’s competitors have high quality, relevant content and concise, informative product information. However, few offer value-adding content, such as blogs etc. Most competitors, such as Bobbi Brown and Zoeva offer on site tutorials and how-to videos. MAC offers the best extra content, with ‘how to’ videos, #maccosmetics gallery on which consumers can upload images of them wearing the products, meet the artist feature etc. Theses are ideas that Spectrum could consider to improve it’s content strategy.

CUSTOMISATION

Currently, the only personalised feature on the site is the traditional user profile log in and wish list feature. Other than that, none of the content or experience is customised to the individual. Emails are also only personalised (using the users name) when the user makes a purchase. Otherwise the emails are the same for everyone. The brand should consider collecting data on their consumers so they can target individuals more specifically. This way, they can push relevant products to specific audiences.

All Spectrum’s competitors offer basic customisation features such as profile login’s. None of the brands offers anything different to Spectrum on terms of customisation.

COMMUNITY

There aren’t any community spaces on the website as such, apart from customer reviews (on which other users can’t comment) and the blog (also on which users can’t comment). The brand should consider opening these spaces up for conversations between users. They could also consider a forums page, where users can discuss any issues they may be having, or just to simply talk about the brand. However, arguably the brand’s community space is their social media channels, where users can freely comment and converse about and with the brand.

Very few brands offer community spaces onsite, aside from, like Spectrum, simple things like customer reviews. The more luxury brands in particular, such as Dior and Tom Ford, are far more sales driven on site. Most brand’s tend to utilise their social channels for community sharing, however this is mainly separate to the site.

CONVENIENCE

The brand is still developing in terms of convenience. They offer tracked delivery and the user receives emails confirming Most of the brand’s competitors offer tracked delivery and also a variety of delivery order and shipment. They accept returns/exchanges within 14 days of receipt, however they do not cover postage cost. options. Some brands, for example Morphe offer free delivery on orders over a certain Consumers may be put off by this. There is a dedicated customer service email, from which users can expect a response price. Also, most brands, such as Zoeva have dedicated FAQ pages where commonly within 48 hours. This is a fairly long and dated process and the brand should consider updating this system to an efficient asked questions are answered. Some of the brands, mainly the most popular, more AI alternative, such as a chatbot, as users would find it less frustrating to have easy access to answers, rather than established brands such as MAC have a live chat feature, however this is only 9am - 5pm having to wait for an email response. The brand should also consider and FAQ Page, so users may not always have to Monday to Saturday and 10 am - 4pm Sunday, not 24hrs. contact customer services.

COST REDUCTION

The brand has the best price for the product because, apart from few wholesaler stockists, the brand All the brand’s competitors hope offer the best price for their product on their is the only stockist. There is added value shopping directly from the brand due to the loyalty points site and ensure that customers purchase from their ecommerce site. Most of scheme, from which, if used regularly, consumers can get an even lower price by spending their Spectrum’s competitors ensure this through similar incentives, such as loyalty points. There is also the incentive of student discounts, aimed directly at the brand’s target consumer. programmes or discounts.

This is why consumers get the best price from the brand.

CHOICE

In terms of choice, the brand is very successful. It’s product range is broad and there is a product aimed at everyone. Users can choose from a variety of payment methods, including Apple Pay and American Express.

Users also have a variety of platforms to interact with the brand on, including the obvious Facebook and Instagram, but also Youtube. The brand should consider offering more delivery options, such as Next or Nominated Day Delivery or the option to pick up from a collection point. They should also consider making the returns process easier, with paid returns stamps and aa longer returns period.

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Spectrum Collections is a brand developed on the fact that it’s competitors lack choice in their product ranges and it remains true. Some brands such as MAC and Zoeva are branching out into more trend-led products, however most brand’s product ranges are all very plain and boring. Most brands offer a wide variety of payment, delivery and refund methods. It tends to be the newer brands that have less choice.

Marketing and Social Media objectives

AIDA MODEL AWARENESS The image is bright and bold and consists of colours that make the audience think of both the brand and the film that the collection is based on. The iconic ‘Burn Book’ is the first thing consumers will see, even before they notice the brushes, but this will catch their eye and make them stop to see what the other products in the image are. The fact that all the products are shot quite closely together means that users have to pause and look to at intricate details of the image.

The AIDA Model is an effective strategy for INTEREST identifying the process a consumer goes Whilst the content doesn’t necessarily give any through, from viewing brand content such as a information on the products, it plays on the emotional sponsored post, to responding to a CTA and appeal of them. Many users will recognise the Mean Girls converting from social to web. The brand imagery, for example, the Burn Book and the iconic quotes on the packaging. This will drive consumers to seek further should implement this strategy on all information on the product. Also, the caption encourages sponsored content.

users to engage with the post by commenting in response to the question. It directly asks users what was the best brand product they received as Christmas gifts. This encourages users who received products to comment, therefore those who did not receive a product may feel jealous and be driven to purchase.

ACTION The audience will engage with the post, either through commenting or liking it. They will then respond to the ‘Shop Now’ call-to-action which will take them directly to the product page on the ecommerce site where they will either purchase the product or explore the other products on the site.

Desire The audience will respond to the emotive and personal language in the caption. Use of pronouns such as ‘me’ and ‘your’ attract consumers and make them feel like the caption is directed at them and that the brand is interacting with them personally.

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Marketing and Social Media objectives

THE HONEYCOMB METHOD Conversations ‘The extent to which users communicate with each other.’

Sharing One of the primary functions of ‘The extent to which users exchange, social media was to start distribute and receive content.’ conversations and when entering a Instagram is all about sharing images and new market, there is no better was to content. This ties in perfectly with a market encourage users to interact and develop a of consumers who love to share life relationship with a brand. The brand will use experiences on social media. By focusing on CTA’s such as ‘comment’ and ‘share’ on Reputation sharing interesting and relatable content, Instagram, which encourages the consumer ‘The extent to which users the brand will develop a better to engage and interact, and possibly take know the social standing of relationship with their audience and the conversation further on their own others and themselves.’ encourage them to reciprocate and feeds. By having these conversations When targeting a market of tech share their own content. with their audience, the brand can savvy consumers, it is important that develop a better understanding there is a level of trust between the of their needs, motivations and brand and it’s audience and this comes what makes them engage. with being reputable on social media. The brand can measure their reputation through data analytics and metrics, from as basic as the amount of followers they gain to the ratio of positive to negative comments on their feed, to the number of likes on an image. It is very easy for consumers to voice their opinions to a large audience on social media, so it is important that the brand focuses on having a positive reputation.

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For this campaign, the brand will focus on Instagram as their main social media platform for developing a relationship with their new customer and also both product and brand promotion. Using the Honeycomb Method of Social Media will help the brand gain a better understanding of their audience and also better focus on elements that will assist in gaining the best engagement for the brand. Out of the seven potential building blocks; identity, conversation, sharing, presence, relationships, reputation and groups, the brand will focus on sharing, reputation and conversations because these will be most effective when applied to the chosen platform.

Marketing and Social Media objectives

Keyword search Using certain keywords/phrases help a search engine to understand relevant It is really important that the brand keywords and prioritise them. Keywords considers their SEO strategy within their are important because they ‘answer a marketing objectives. SEO is extremely question’. Good use of SEO in a metaimportant because millions of users use description would contain all the brands search engines to ask questions and find important information, organised by solutions to problems and good SEO relevant keyword. Ideal practise helps provide these keywords have high search answers. quickly and volume and low competition efficiently. and they’re neither too broad nor too specific.

Most search engine SEO is also important because it is good users are most likely to click on for brand promotion. Users are more one of the top five search likely to share a website on social media engine results pages (SERP’s). is they found it easily on a reputable User’s put their trust in search engines search engine. Also, having better SEO and by the brand having a top position on will give the brand an edge over it’s an SERP means it’s more likely to appear competitors as users are more likely to trustworthy and reputable. This comes find it. Good SEO also improves a site’s with having good SEO and keywords user experience (Chris, 2019).

(Chris, 2019).

SEO

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Marketing and Social Media objectives

In order to ensure that consumers are seeing their ads, the brand must determine what keywords are most relevant to the brand. Then they can bid to place these keywords in their ads. It is important that the brand bids on highly relevant keywords in order to make the ad campaign most cost eective.

Once the user clicks on the ad on the SERP, the brand then pays the amount that they have bid on on the keyword. This is PPC.

SEO

Keyword Marketing

According to SEO tool semrush.com, the top organic keywords for the brand are as follows‌

The top paid keywords, the PPC rankings, are as follows‌

These are the unpaid keyword rankings determined by the search engine.

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Marketing and Social Media objectives

SEO

Keyword Marketing After researching relevant keywords, the brand can begin to create a keyword bundle.

Using Google Adwords, I have created an example keyword bundle using keywords that ranked highly on semrush.com. I have also introduced other keywords that I felt were relevant to the brand and would create answers to searches, such as ‘vegan brush set’ and ‘cruelty free makeup brushes’. These keywords are most relevant in the UK, however these are also developing trends in the new market, so searches may increase over time.

By using these specific keywords in a campaign, the brand could potentially gain 2700 clicks and 40,000 impressions on their site. It would also give the potential ads an average position of 1.2, meaning it ranks highly against other ads and would typically be on the first SERP and a click through rate of 6.8%. The average, industry benchmark CTR for an ecommerce search ad is 1.66%, so this is considerably above average. The cost per click is slightly higher than the industry average of £0.69 ($0.88), however not considerably (Volovich, 2019).

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Marketing and Social Media objectives

SEO

Improving Keyword Density Keyword Density Keyword density is the amount of times a keyword is used in a body of text. The brand should aim to have a keyword density of between 0.5% to 2.5%, neither too dense or not dense enough. The brand should not have a keyword density of over 5%. For example, in a brief product description of 100 words, a key word should not be used more than twice.

Using the tool prepostseo.com, I was able to see the keyword density for a product description. Whilst the keyword density was already good, there was room for improvement and by extending the length of the description, I was able to fit more keywords in without increasing the density too much. the brand should consider this for all products in order to improve SEO.

Original SEO Keyword Density Keep your brushes looking, working and smelling great and wash away any impurities and product residue with our new vegan liquid brush shampoo in a delish coconut sugar scent.

For the best possible clean, gently massage a small amount of the shampoo into wet bristles to create a lather. Rinse the bristles, and squeeze out any excess water. Repeat as necessary and leave brushes to dry flat. đ&#x;’• Made in the UK đ&#x;’• Allergen Free đ&#x;’• Paraben Free Ingredients: Aqua, Sodium Laureth Sulfate, Cocamide DEA, Cocamidopropyl Betaine, Glycerin, Decyl Glucoside, Glycol Distearate, Panthenol, Polyquaternium-7, Citric acid, Laureth-4, Ethylhexylglycerin, Parfum, Sodium chloride, Lactic Acid, Phenoxyethanol, CI 17200 (Red 33)

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Marketing and Social Media objectives

SEO

Improving Keyword Density Keep your makeup brushes looking, working and smelling great and wash away any impurities and makeup residue with our new vegan liquid brush shampoo in a delish coconut sugar scent.

For the best possible clean, gently massage a small amount of the shampoo into wet bristles to create a lather. Rinse the bristles, and squeeze out any excess water. Repeat as necessary and leave brushes to dry flat.

Improved SEO Keyword Density

Use your shampoo once a week to prevent product build up clean brushes equals clean skin and better makeup application!

For an extra deep clean, we recommend using this product with our Starfish Cleaning Tool to help massage the shampoo deeper into the brush. đ&#x;’• Made in the UK đ&#x;’• Allergen Free đ&#x;’• Paraben Free No Unicorns were harmed in the making of our products.

Proud to be vegan registered and cruelty free.

Shampoo Ingredients: Aqua, Sodium Laureth Sulfate, Cocamide DEA, Cocamidopropyl Betaine, Glycerin, Decyl Glucoside, Glycol Distearate, Panthenol, Polyquaternium-7, Citric acid, Laureth-4, Ethylhexylglycerin, Parfum, Sodium chloride, Lactic Acid, Phenoxyethanol, CI 17200 (Red 33)

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Marketing and Social Media objectives

SEO

Improving Keyword Density Original SEO Keyword Density Domed Powder Brush The super soft bristles of the Domed Powder Brush are ideal for applying a fine layer of translucent powder, or a dusting of bronzer. A great all round brush to leave in your handbag for touch ups, as it doesn't pick up too much product. Perfect for those on the go.

Part of our A range designed specifically for Application All brushes are made from the highest quality synthetic hair.

No Unicorns were harmed in the making of our products. Proud to be vegan registered and cruelty free.

In this description, the keyword density is very high, with the two main keywords both over 5%.

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Marketing and Social Media objectives

SEO

Improving Keyword Density Improved SEO Keyword Density Domed Powder Brush The super soft bristles of the pink Domed Powder Brush are ideal for applying a fine layer of translucent powder, or a dusting of bronzer. A great all-rounder to leave in your handbag, as it doesn’t pick up too much product. Perfect for easy application on the morning commute or touching up your evening look. A must-have for girls on the go.

Part of our A range designed specifically for Application in the staple millennial pink design from our most iconic collection.

All brushes are made from the highest quality synthetic vegan hair.

No Unicorns were harmed in the making of our products. Proud to be vegan registered and cruelty free.

Density improved to 5% and below by increasing volume of description so not to lose too many keywords.

SEO Recommendations‌ Whilst both of these examples are product descriptions, the brand will focus on optimising SEO around Hong Kong and on content such as blog posts.

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Marketing and Social Media objectives

RETENTION PLANNING Retention Marketing Retention marketing is the actions and activities and brand employs to reduce the number of customer losses post initial sale. The goal is to RETAIN customers, often through customer loyalty and brand loyalty incentives.

Customer retention begins with the first contact a customer has with the brand and continues throughout their entire relationship and it’s aim is to ensure that a customer will return to the brand after their initial purchase.

Customer loyalty is decreasing due to many It is important for the brand to create loyal and reasons, such as brands failing to focus on long-term customers because they will buy more the customer’s experience as a whole, or per year and more regularly , be more likely to buy that the consumer world is just generally more expensive products, be less price sensitive more transparent (MyCustomer, 2019), so and have a higher brand lifetime value.

consumers are shopping around far more.

Having a retention strategy means that the brand In order to combat this, the brand must can maximise the profitability of each customer ensure that they behave as customer by understanding them more and keep them keepers, rather than shop keepers. coming back.

Customer loyalty may be affected by a number of factors, such as business ethics, a lack of choice, novelty seeking, trust or dissatisfaction.

The key values required for keeping customers loyal are trust, quality and service.

‘I’m loyal, babes.’

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Retention Planning

RETENTION STRATEGIES These are some potential retention strategies that the brand could implement in Hong Kong

Email Retention Schemes Alongside their regular email newsletters and updates, the brand could oer send out lifecycle based emails with incentives, such as birthday discount codes. They could also consider sending out surveys, which literally gives the customer the opportunity to tell the brand how to improve. The brand also don’t currently send out lost revenue activation, such as abandoned cart emails, which has the potential to regain lost customers.

Invest in more engaging Loyalty Schemes Whilst the brand already employs an average point’s based loyalty system, where after gaining X amount of points, users receive discount vouchers of set amounts, the brand should consider using more innovative schemes. For example, cosmetic giant Sephora run a points scheme whereby customers can choose how to use their points, rather than simply receiving vouchers. Tarte, another cosmetic retailer, use their loyalty scheme as a way to boost social media engagement and gain user generated content. Users can gain points from creating content, such as posting a selfie wearing the product, or writing a blog post review, capitalising on the trend of consumers turning to social media when making buying decisions. This scheme also turns consumers into brand advocates, thus pushing brand awareness to a wider audience.

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Retention Planning

DATA ANALYTICS Tracking data analytics is important because it allows the brand to gain a better understanding of both it’s website and it’s users. By understanding how users behave on a site and who they are and how they got there, the brand is able to improve it’s website user experience, focus on creating the best and most relevant content for the site and further utilise these metrics to create more sales.

Using the tool similarweb.com, I was able to see some of the brand analytics for April 2018.

Website Engagement Overall, the brand has good onsite engagement, with a huge 60,000 total visitors, nearly 4% up from March. The average session duration is 1 to 2 minutes above average (Spinutech.com, 2019) and the average number of page views is 2 above the industry average of 5.4 pages (Guiding Metrics, 2019). The bounce rate is also just below the industry average of 45% (Rocketfuel2014, 2019), however, this could be lowered by optimising UX and running regular site audits.

Worldwide, the site has a slightly lower average page views, but a higher average duration time. This maybe because consumers are spending more time immersing themselves in the content. The bounce rate is slightly higher, but is decreasing.

Traffic Rank First and foremost, the brand’s traffic ranks are shown. This is the ranking of website against all other websites on the internet in regard to the amount of organic traffic.

As we can see, it is increasing in all categories, however, ways to further improve would be to increase paid ads, focusing on SEO and creating relevant content to drive traffic to the site.

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Marketing and Social Media objectives

DATA ANALYTICS Desktop Traffic Sources

Total Website Visits Whilst it may look like the total web views is decreasing dramatically, it is important to take into consideration that particular shopping periods will drive traffic. The traffic is extremely high (over 100,000 viewers) between November and December, peak Christmas shopping time, with promotional periods such as Black Friday and Cyber Weekend. Views slowly decline throughout December and January, where there may be sales and promotional periods. Since then, views have steadily decreased even more.

There haven’t been many new product releases or new campaigns, so this makes sense and views will most likely pick up again during the next onsite promotion or new campaign.

It is also extremely important to understand where web traffic is coming from and how it was directed to the site so that the brand can focus on pushing marketing in those areas, but also see where their strategies could be improved to increase overall traffic.

Nearly half of the brand’s traffic come from organic search. This comes from having good SEO. The next highest traffic source is direct traffic, which is impressive because this comes from users knowing the URL, or has the site bookmarked etc. Social and email traffic seems very low, however, these analytics only account for desktop traffic, so it is very likely that traffic from these sources, particularly socials, as it is an Instagram orientated brand, would be higher on a mobile device. Referral traffic, such as traffic from backlinks or banner ads, is also quite low. The brand may want to consider pushing for more reputable referrals, as this wold boost their SEO and SERP ranking, thus boosting search traffic.

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Marketing and Social Media objectives

DATA ANALYTICS

Social Traffic Sources For a brand who’s target market are the socially savvy generation, it is important to be aware of which channels drive the most traffic to the site. It is unsurprising that Facebook is the biggest source of traffic, with 2.23 billion monthly average users, it is extremely easy for to reach out to your target customer. However, this data only accounts for desktop traffic, and Facebook is a desktop orientated platform, where as channels such as Instagram are much better suited and more likely to be used on mobile. Also, due to the Instagram focus of the brand, this data may be different for mobile traffic and it wouldn’t be surprising if the highest performing source was Instagram, particularly as the brand only has 116k followers on Facebook and 329k on Instagram. However, even for desktop, Instagram is not far behind Facebook when driving traffic. The amount of traffic from Youtube is impressive compared to it’s small follower count of 1900. However, most the content is extremely useful and engaging, such as brush tutorials or campaign videos.

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Marketing and Social Media objectives

DATA ANALYTICS To better understand these analytics, the brand should run regular comparisons with it’s competitors to see what elements competitors are succeeding in, which will help the brand focus on how to improve.

However, for this comparison, I have chosen to compare the brand with American Cosmetics retailer Glossier. Brand founder Emily Weiss, who began her business journey with her renowned blog Into The Gloss, launched Glossier in October 2014 in the US, a year after Spectrum Collections was unveiled in the UK. Since then, it has gained an enormous cult following within the industry and has become one of the most disruptive brands of the decade. In March this year, the brand was valued at $1.2 billion (CNBC, 2019). Glossier is famed for it’s Instagram and millennial driven strategies, digitally innovative techniques and iconic bricks and mortar experience, now boasting permanent stores in both New York and LA and successful pop-ups across the US and even in London.

Glossier currently has 2 million Instagram followers.

Digitally, this is a brand that Spectrum Collections aspire to compare to. By looking at these analytics, we can see how the two brands compare.

Traffic Rank Interestingly, whilst Glossier ranks considerably higher both globally and and in it’s category, both it’s analytics are on the decline, whereas Spectrum Collections is on the incline. This may be because Spectrum Collections is focusing on improving it’s ranking through strategies such asSEO and paid ads.

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Marketing and Social Media objectives

DATA ANALYTICS Glossier’s total views average at about 2.5million per month, peaking at just over 3 million views during the Christmas period and 2.06million last month. Spectrum Collections averaged at about 75,000 visits per month with 60,000 last month. This may seem like a high difference, however, Glossier is a far more global brand, with international sites and shipping. Spectrum is still growing in that respect, having only just begun to ship to the US. Also, Glossier may be well ahead due to considerable amounts of investment from third parties, whereas Spectrum Collections haven’t accepted investment to this day (Cosmopolitan, 2019).

Despite this, Spectrum has a longer average visit duration and a higher average page visit than Glossier. This is probably due to the value-adding content such as the blog and simply the fact that there are more products for consumers to browse. Spectrum also has a slightly lower bounce rate than Glossier.

The two brand’s have very similar ranking traffic sources, with not much difference between the results, however, Spectrum’s effective SEO strategy and PPC ads pushes traffic from organic search. Glossier comes out on top in terms of traffic coming from all other source, but this may come from having a much larger, more global audience database.

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Spectrum Collections Glossier

CONCLUSION According to primary and secondary research, there is a huge demand in the Asian market for ‘instagrammable’, social media worthy products and experiences. The market is currently saturated by designer and luxury goods, but, due to rising property prices, consumers are more inclined to spend on experiences and more affordable products. The brand would launch successfully into the market due to it’s aesthetic, trend-led appeal and middle-of-the-market price point. By creating an Instagram worthy retail spaces and focusing on strategic social media and online KPI’s and offering a competitive edge to it’s luxury competitors, the brand will appeal to it’s target demographic and succeed.

In order to continue succeeding in this marketplace, the brand should continue to analyse it’s target market and refresh it’s marketing strategies to keep up with developing trends.

In addition to this, the brand should consider some of these recommendations…

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RECOMMENDATIONS Social Media Although the brand is very successful across it’s social channels, I would recommend that it considers strategies such as influencer marketing.

For a brand that focus’s most of it’s social media marketing on Instagram, there is a lack of consistent influencers representing the brand. In the past, the brand used influencer Chloe Lloyd to be the face of their Disney campaign, however, aside from editorial campaign videos and some content created by Lloyd, there was little evidence that she was involved. Having more consistent influencers, most of whom fit well into the target market, would widen the brand’s audience even more and would give the current audience a recognisable face that they could build a relationship with. Also, they should consider pushing their Youtube content across their other social channels. The video content is highly engaging and informative, however, despite following the brand for many years, I was only made aware of the Youtube channel whilst conducting this report. I really enjoyed the content and felt that it should be shared more, particularly on Facebook or over the IGTV channel, or even have a dedicated page on their ecommerce site, which would create more onsite value-adding content. Otherwise, the brand have an extremely successful social strategy which continue to grow and build their community.

Digital First and foremost, the brand should consider creating an app. This could both be for ecommerce, but also for interactive content such as tutorials, interviews etc.

They should also consider using AI in their UX strategy, features such as chatbots, product recommendations, aural/visual search will make the retail experience much more engaging and efficient for the consumer. AI is a growing trend in digital marketing and I recommend that the brand gets on board whilst it is still fresh.

Product Naturally, I would recommend that the brand expands it’s product line into makeup, however, this is already in the works and due to launch this summer. This is a natural progression for the brand and I imagine will be hugely successful. From this, the brand could consider hopping on the increasingly popular skincare trend and launch a skincare line, similar to the growth of Glossier.

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Bricks-and-Mortar Store Following the hugely successful pop-up store in Carnaby Street, I think that the brand should seriously consider having a permanent physical retail space. Although digital retail seems to be rapidly overtaking the physical retail experience, cosmetics brands such as Glossier, a brand that was originally digital-only, are expanding their bricks-and-mortar models, each one more successful that the last. As previously mentioned, Glossier is a brand that Spectrum should aspire towards digitally, but also as a physical model.

Appendix RETAILER DESCRIPTION AND BUSINESS MODEL

Pop-up Store Proposal

Brand Mix Proposal

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• • • • •

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