Current Industry Condition in Which the Brand Operates - Assignment Example

?Individual Report Table of Contents Current Industry Condition in Which the Brand Operates 3 1a. Industry Size and Overall Sales Trends for MajorProduct/Service Segments 3 1b. Market Share and Market Share Trends for Major Competitors 4 1c. Major Trends Affecting the Category 5 1d. Recent News of Note 6 2. Comprehensive Profile 6 2. A. ii Logo 7 2. a. iii Symbols 7 2a. iv Packaging and Trademark 7 2b.i. Product Characteristics 8 2b.ii. Pricing 8 2b.iii. Promotion 9 2b.iv. Distribution 10 2c. Brand Positioning: Target Market, Segmentation and Nature of Competition 10 3. Review and Summary of Brand 10 3a. Brand Equity 10 3b. Brand Position 11 3c. Brand Identity 11 3d. Brand Personality 12 4. ‘Summary of Insight/Key Findings Derived From the Current Brand Status Analysis’ 12 Phase 2:  Decision  Making  And  Long  Term  Management  Of  The  Brand 14 1. Reinforcing and Maintaining Brand Consistency 14 2. Expanding Brand Awareness 16 3. Repositioning the Brand 17 4. Marketing Mix Communication Recommendation 19 5. Synopsis of Recommendation for the Future of Crabtree & Evelyn 21 References 22 Phase 1:  Current Brand Status Analysis 1. Current Industry Condition in Which the Brand Operates Crabtree & Evelyn is operating in the personal care industry. The personal care products might be comprehended as the products that can be used for the personal hygiene as well as personal health. The products can be tongue cleaner, bathing salts, tooth brush, body scrub, body talc, skin creams, face wash, soaps, nails as well as cuticle care products. The chief four subsectors that manufacture wide range of products are face care products, hand and foot care products, hair care as well as cosmetics. 1a. Industry Size and Overall Sales Trends for Major Product/Service Segments The total revenue produced by the market for the UK bath and shower products had been $642.6 million in the year 2009. The compounded annual growth rate (CAGR) for the year 2005-2009 had been 0.5%. The deodorant market of the UK in the year 2009 was successful in generating total revenues of $904.3 million and the compounded annual growth rate had been 4.4% for the period 2005-2009. The hair care markets, hand and body care market, make-up market, fragrances market, facial care market and personal hygiene market were successful in generating the market revenues of $1.8 billion, $611 million, $1.8 billion, $1.7 billion, $1.3 billion and $1.9 billion respectively representing compounded annual growth rate of 11.%, 2.2%, 6.6%, 7.3%, 3.7% and 2.3% respectively (Aarkstore, 2011). According to the views of Irina Barbalova who is the head of the beauty and personal care research at euromonitor tried to throw light upon the current global consumers trends for the personal care and beauty. According to her opinion, rise in the beauty as well as personal care sales in the year 2010 has been evidenced. It was further noted that the consumers returned back to the premium cosmetics since the recession for the first time. The reason behind this phenomenon has been the product innovation that took place in the premium segment. It can be revealed that the regions that saw a decline in the premium cosmetics in the year 2009 observed a recovery in the year 2010. It has been the hi-tech innovation supporting the premium segment recovery which spread to the mass segment and private label thus providing the customers with a better value for money (Euromonitor International, 2011). 1b. Market Share and Market Share Trends for Major Competitors There are many players in the personal care industry whose market share has been quite high. One of them has been Procter & Gamble which is the world’s biggest producer in the household and personnel care product (HPC) in terms of revenue. The products are accessed by 4 billion people all over the globe. The business of Procter and Gamble in the quarter of 2011 is quite strong. The sales volume has surmounted by 5%. The growth has been quite broad consisting of 6 business segments, 16 of its top 17 countries as well as 20 of its brand worth 24 billion Dollars whose sales volume increased in comparison to the same quarter of the year 2010. It has built its market shares in most of the geographic regions such as in 14 of its top 17 countries of the world and for 18 of its 24 billion Dollars brands. The reason behind the phenomenal development has been the company’s attention towards the innovation and expansion strategies (Procter & Gamble, 2011). 1c. Major Trends Affecting the Category In the month of April 2010, the ‘UK Beauty Barometer Report’ first published by L’Oreal provided factual as well as empirical evidences demonstrating the impact of recent economic climate had upon the consumers shopping habits in the UK beauty industry. The report has divided the trend in cosmetic along with fragrances, skin care and hair care and styling category. It was reported that the innovation in the skin care products was expected to come with the progress in the scientific research in the year 2010. The research would particularly focus upon the proteomics, genomics as well as research upon the stem cell. The research also focused upon providing customized products so that the individual’s skin could be taken care of. The report made it evident that even during the economic downturn the women in the UK paid due attention towards their appearances. The women used disposable income in order to treat themselves with smaller and more affordable luxurious cosmetic items. After the recovery of the economic downturn in the UK it was noted that the confidence in the women boosted and the demand for the product increased (The UK Beauty Industry, 2010). It can thus be revealed that the worldwide natural personal care market has improved from the global economic decline and is found to be outperforming overall industry growth. Once the consumers are able to recollect their confidence in the market along with the natural movements then it can be expected that the sales will double in the coming five years. This projected growth provides an opportunity for the global as well as the regional players to take advantage in biggest and the emerging markets (Natural Cosmetic News, 2010). 1d. Recent News of Note It has been found that manufacturer and marketer of home as well as the personal care products named Lornamead, UK has purchased Witch that belonged to E.C. DeWitt & Company Limited (Communication International Group, 2011). 2. Comprehensive Profile The company that has been chosen for the study is Crabtree & Evelyn brand. This section will aim at comprehending the marketing as well as branding strategies of the Crabtree & Evelyn brand. 2a.i. Name The product is marketed with the name of Crabtree & Evelyn. The company was launched in the year 1972 by a person named Cyrus Harvey. It was started as a small business that was renowned family-run business that specialized itself in selling fine soaps to an international company. It is known for the original fragrances, gifts and gourmet foods for the people living sophisticated lifestyle, luxurious toiletries. Its name itself reflects its characteristics. The term Crabtree denotes the crabapple tree and the term Evelyn has been derived from the name of John Evelyn, an Englishman who brought resurgence in the 17th century. John Evelyn wrote one of his first works that is significant on conservation and his focus was on exploring everything and thus keeping the best that tends to inspire Crabtree & Evelyn (Business Wire, 2011). 2. A. ii Logo The logo of the company is based upon the 17th century English woodcut (Tomlinson & Et. Al., 2007). A logo can be understood as being a name or an abbreviation that has a particular graphic style. The logo of the company is Crabtree & Evelyn (Korpela, 2006). 2. a. iii Symbols The company uses the Crab Apple Tree as a symbol which originated in Britain. The symbol used has been awarded for its lovely form as well as the usefulness in the home apothecary. The meaning of the symbol of the company is beauty along with natural goodness that is inherited in the brand (Albaraka Mall, 2010). 2a. iv Packaging and Trademark The product is well known for its appearance, beauty as well as the design of its packaging and for its decorative containers (Crabtree & Evelyn, 2011). The graphics that has been used demonstrates the usage of distinct botanicals that played a major role in each line of its products. For instance, one of its products has been packaged featuring alpine flowers Edelweiss (Genuario, 2006). The names, images, designs, photographs, trademarks, logos, illustrations as well as the written materials appearing at the websites are owned, monitored by, or licensed to Crabtree & Evelyn Ltd (Crabtree & Evelyn, n.d.). Most of its products are packaged at attractive bags such as the manicure sets that have tweezers, scissors, nail clippers, cuticle sticks and nail file. It can be revealed that the company makes use of the finest ingredient to manufacture its products. Its beautiful packaging indicates the quality of the product inside (P.C. Fallon Company, 2011). 2b.i. Product Characteristics Crabtree & Evelyn features the products that have been made from the ingredients of nature such as it has product ranges that have been prepared from the fruits, plant and flower essence. It aims at creating the products that can change the common habits of the daily life to extraordinary pleasurable experiences. The stores have a distinctive English style that tends to delight the customers (Crabtree & Evelyn, n.d.). 2b.ii. Pricing Pricing is considered as one of the useful elements of the four Ps of marketing. The prices may rise because of the rising cost of the commodities such as milk powder, cotton, packaging made from the oil and others. It is quite important for the marketers to see beyond the price and thus focus their attention on the brand equity whilst not damaging the brand itself. 2b.iii. Promotion The company seems to have been focusing upon the sales promotion techniques in order to attract the customers. It has been providing its customers various offers via coupons and discounts which can be availed by the customers (American Diversified Publication Inc, 2011). It has been noticed that Crabtree & Evelyn is planning to use digital application so that they can attract numerous kind of customers as stated in the company’s new five-year marketing strategy. It plans to introduce ‘A Mother’s Day’ themed application on the mobile so that people can be encouraged to buy gifts from its stores. It further plans to introduce a cloud-based kiosk that would be placed at major retail stores that will assist the retailers to comprehend the behaviour of the customers (The Chartered Institute of Marketing, 2011). The retailer Crabtree & Evelyn is investigating into customer database and is focusing upon the new customer relationship management strategy so that it can deliver the service as per the needs of the customers. It has been noted that the company’s new loyalty program is an approach known as tiered approach that has been designed to identify its best customers and thus deliver value. It tends to combine the promotion as well as the discounts by focusing more upon surprises, in-store experiences. The best example of this can be the company’s five-minute massages (Amato-Mccoy, 2011). It has been noted that the company used to design various toiletry product for British Airways and since then providing product samples in the airline as well as in the hotels has proved to be successful way of making the people aware of the brand (Superbrands, n.d.). 2b.iv. Distribution Crabtree & Evelyn provides its services to more than 3000 wholesale accounts and thus operates in 91 retail stores. It also has an e-commerce site at www.crabtree-evelyn.com. The company also focuses on hotel amenities as a distribution channel. The company is available online and is also available at approximately 40 countries having 6000 wholesale accounts as well as 500 retail locations all over the globe (Cooley LLP, 2011). 2c. Brand Positioning: Target Market, Segmentation and Nature of Competition The targeted customers for the Crabtree & Evelyn are those possessing the dried out, normal and oily epidemics. The company aims at targeting the women who are aged between 20 and 45 (Genuario, 2006). The company designs its products according to the English tradition. Therefore, its packaging, designing and other marketing initiatives are also focused upon the English tradition which tends to differentiate itself from others. 3. Review and Summary of Brand 3a. Brand Equity Brand equity can be understood as the value premium as realized by the company from its products with the name that is recognizable in comparison to the brands generic equivalent. There are ranges of ways through which the brand equity can be created by the companies. They can make the brand memorable, superior in terms of the quality and reliability. In addition to this marketing campaigns can also assist the companies in creation of the brand equity (Investopedia, 2011). It can be demonstrated that Crabtree & Evelyn brand possess heritage as well as recognition in various markets worldwide. It consists of the product ranges that are traditional such as Lavender, Rosewater to the modern such as usage of La Source, Aromatherapy Distillation (Harris, 2009). 3b. Brand Position Each and every company’s strategies need to be aimed towards creating a perception in the prospects mind so that differentiating the product from those of the competitors becomes quite easier for its brands (Sengupta, 2005). It has been noted that Crabtree & Evelyn wants to position itself as one of the pioneer in the luxurious English home apothecary or ‘Still Room’ tradition. It wants to further offer its customers with the distinctive, home comforts as well as innovative remedies that are produced taking the help of scientific methods and time tested ingredients. The customers get a sensuous experience as well as the feeling of well being by the usage of the Crabtree & Evelyn products. 3c. Brand Identity It is worth mentioning that the company is well recognized globally since it is successful at offering its clients with different range of products. It’s well identified as being dedicated towards offering its customers with quality products and designs in the English tradition. The company seems to be focusing upon the design of the products as it strongly believes that the design for the product is the most important element for the Crabtree & Evelyn that assists them in conveying upon its brand values to the customers (MyPrivateBrand, 2011). It has been noted that the company has undergone strategic brand implementation. It has transformed from its old design characterized as Victorian ambiance, English apothecary, individualized by location to new design that can be characterized as being contemplative, global, unusual natural materials and the products that are relevant for today (Slideshare, n.d.). 3d. Brand Personality It has been noted that the company for the first time in its history had introduced a brand personality so that the core values of the brand can be conveyed. An agreement was made with the British style idol named India Hicks. It had been noted that the partnership with Crabtree & Evelyn and India Hicks was formed in which she worked as brand ambassador and as a creative force for the growth of her individual Island Living range (Superbrands, n.d.). 4. ‘Summary of Insight/Key Findings Derived From the Current Brand Status Analysis’ Crabtree & Evelyn has been operating in personal care industry. After the economic recovery in the UK the demand for the cosmetics and the personal care products seems to have surmounted. Crabtree & Evelyn is a world’s renowned producer of the toiletries as well as the cosmetic products. Its products are made up of natural ingredient such as fruits, flowers as well as plant essence. The company’s brand equity seems to be quite higher; the reason behind this has been its superior quality and the brand recognition among the consumers of the world. It has diversified itself into most of the segments of personal care and thus focuses upon innovation. It makes use of the emerging technologies as well as the accumulated knowledge on the plants as well as the botany to develop a new product. It is evaluated that the company’s strategic moves has been aimed at being the leader in the particular segment. Phase 2:  Decision  Making  And  Long  Term  Management  Of  The  Brand 1. Reinforcing and Maintaining Brand Consistency The reinforcement of the brand equity is possible by implementing certain marketing actions that will define the brands meaning consistently in terms of the brand awareness as well as brand image to the customers. It can be revealed that consistency has been the second and the most significant theory of branding after brand differentiation. Most of the theories that have been aimed at the brand creation as well as the management consist of consistency as one of the most significant element of the process. It is well known fact that the branding tends to provide various benefits to the consumers which is generally long term in nature. Brand consistency possess the power to either persuade the behaviour of the human as a motivator or it attempts at dissuading when the offer tends to be inconsistent with the belief of the customers. The business houses can make use of the consistency in order to reinforce as well as drive awareness, loyalty, advocacy, repeat purchase and trial to the customers. It has further been evident that consistency aims at providing the operational benefits in branding via cost control and efficiencies. However, it is quite necessary for the company to maintain uniformity in its brand elements other components that seem to be central for the brand (DDB Worldwide Communication Group Inc, 2011). It has been noted that most of the companies have tried to implement a great degree of consistency in terms of the verbal, visual and tactile brand identity in various geographic regions a well as the markets in which they intend to compete. They provide reliable customer experience all over the world that is generally supported by integrated worldwide marketing efforts. By maintaining consistency in the brands the companies can avoid many risks and thus gain long-term benefits. The definition of the brand consistency explains it as a qualitative as well as the quantitative evaluation of the brands capability to deliver repeatedly to its customers the experience that it has promised (Keller, 2008). Therefore, it would be suggestible for the Crabtree & Evelyn to maintain brand consistency in the near future. In order to do so the company might have to introduce transformation in the ethos as well as the culture to a strategically thoughtful one which will encourage and evaluate the deviation or any differences in the brand in order to remain competitive and highly responsive in all the major markets that it chooses to operate in. In order to remain consistent it would be highly recommendable for the Crabtree & Evelyn to keep innovating and providing product made from natural ingredients as it does at present. It is so because in the near future also the demand for the natural products will stay the same in comparison to the product made from chemicals. In addition to this, Crabtree needs to deliver the product that it promises its customers in order to remain competitive and for the long term survival of the firm. Ethos and the core values of the Crabtree & Evelyn needs to be sustained and the company must not divert from it since it will lead to huge losses and thus may ruin the brand equity of the company. In other words, it can be revealed that even though Crabtree & Evelyn brings in certain transformation in its marketing initiatives; the meaning of the brand needs to remain consistent overtime. 2. Expanding Brand Awareness The brand image is dependent generally on the concept of the brand awareness. This is quite obvious since one cannot have an image of the brand that he is unaware of. The concept of brand image has been the topic of debate among the theorists. As stated by Aaker (1991), there are five components or assets of the brand equity namely brand loyalty, brand name associations, perceived quality, brand associations and other brand assets. According to the Keller (1993) the brand awareness consists of the two elements namely the brand recognition and brand recall. In order to create a brand image it is quite important to have brand awareness. Aaker (1991) has tried to identify that brand awareness as well as brand image are two separate things but has given greater emphasis and weightage to the term brand awareness as one of the drivers of brand equity. It is quite important for an advertisement to make the consumers aware that the product or a brand exists. After that it is important to communicate regarding the features as well as the benefits that the particular product possesses. It is equally important to create a positive feeling for the brand through these advertisement initiatives. The advertisement finally must encourage the consumers to buy the products (Woodside & Megehee, 2009). The marketing objective is to increase the sales by expanding the market for its products. The objective of the brand is to create the product awareness so that the customers are well familiar with the benefits provided by the products. It is the promotion that can assist in achieving the brand objectives by gaining awareness for those particular brands as well as the product types (Jobber & Fahy, 2006). It would be recommendable for the Crabtree & Evelyn to expand its brand awareness and target those untapped areas where the sales potential tends to be higher. The customers need to be educated regarding the benefits of the products. The products need to be targeted towards various segments such as kids segment, youngster segment, teenagers segment and old age segment. Crabtree & Evelyn needs to allocate huge money in the promotional aspect so that increasing number of people gets exposed to the product, are able to recall the product more often and gets benefits from the Crabtree & Evelyn products. Various campaigns which are theme based may be of great help to the company. It will help to bring in more traffic towards the company’s products. 3. Repositioning the Brand Repositioning takes place in the product markets. When major changes tend to occur in some or all of the firms marketing tools then it is called as repositioning. Brand-related products are the major visible type of repositioning. However, the factor that can be noted is that the cost of repositioning tends to be quite different in comparison to the cost of the entry since the repositioning cost may involve the cost of ruination the product related decision of the past and is also dependent upon the history. While repositioning the organization needs to invest huge sum so that within the firm managerial resistance for change can be solved. Other complex decisions involve reworking to build the channel, and educating the customers regarding the new positioning (Ellickson & Et. Al., 2011). It can be recommendable for the Crabtree & Evelyn to reposition themselves as not only the seller of the luxury cleaning products but also the provider of necessities (Crabtree & Evelyn, 2011). It can be revealed that by doing so it will be able to gain the attention of the mass group of consumers. In doing so, the company needs to take into consideration that it pays attention towards the brand promotion. Regarding this new decision the company can promote in various social media sites such as Facebook, Orkut and others in addition to the Twitter that it uses for the promotion. Although in the UK, the demand for the luxury products has increased by 50% by the middle class consumers, however the aim of the company must also be to target the remaining percentage of the middle class consumers (Sriviroj, 2007). In addition to this the company can also produce herbal medicines that would be effective for various problems that the women or men face regularly such as dandruff, acne and pimples, hair loss, dark circles, itching over the skin, black heads, tanning of the skin because of the harmful rays emitted by the sun and others. Therefore, Crabtree & Evelyn can prepare natural medicines that would not contain any harmful chemicals and could prove to be highly beneficial for the above mentioned problems. Since the products of the Crabtree & Evelyn have been targeted towards the women, company can introduce various medicines for women related problems that they tend to face on a regular basis. It is worth mentioning that there are enormous benefits that the natural remedies offer. The benefits of natural medicines have been recognized by the people since thousands of years. Although the process of healing may require certain period of time but there is no side effects of using them. The natural remedies don’t require any prescription from the doctors and thus can be consumed for self medications. However, the companies that manufacture such natural remedies are granted sales permit with the condition that the product will be backed up by taking into mind strong research results and also various documents that tend to acknowledge their capabilities. Since Crabtree & Evelyn researches broad range of herbs, therefore it would be relatively easier for the company to reposition themselves as also the seller of the natural medicines along with the natural personal care products and cosmetics. It has been evident that the demand for the herbal remedies is increasing at a rapid rate in the UK. Therefore, Crabtree & Evelyn will be able to increase the sales of its new products. In the year 2008, it was predicted that the sales of the herbal and homeopathic remedies in the UK would be 265 million pounds in the next four years. Therefore, the future of the herbal medicines of Crabtree & Evelyn seems to be with genuine growth prospect (Davies, 2008). 4. Marketing Mix Communication Recommendation One of the decisions that has been made in relation to the product is repositioning the product in terms of the marketing them as being the provider for the necessity product in addition to being the provider of the luxurious products. For this strategy to be effective Crabtree & Evelyn needs to consider the 4Ps of marketing. Product- The products need to be such that they are suitable and appealing for all the income group people so that other countries of the world that are relatively economically backward as compared to the UK can get attracted towards the product. Price- Price of the product needs to be affordable for all class of the people when positioning them as necessity products to appeal to the mass. Place- The repositioning strategy will try to attract the consumers from those regions of the world who comprehend the luxury products as highly expensive products. Promotion– The promotion strategy will play a major role to communicate regarding the brand repositioning strategies. Digital media can be used for the purpose of the promotion. Repositioning Strategy as Provider Of Natural Medicated Products Product – The repositioning strategy will aim towards providing the natural medicines for various skin related and other problems such as ache, dandruff, dark circles, black heads and others. It will also provide special medicines for the women related problems that are faced by the women since the majority of the target customers of the Crabtree & Evelyn are women. So, producing herbal medicines for them will be of great help. It is worth mentioning that the logo and symbol of the company needs to remain the same for both the kind of repositioning strategies. Place – Initially the UK will be targeted since the demand for the herbal medicines in the UK seems to be surmounting. At the latter stage, Crabtree & Evelyn can target other countries as well. Price- Initially to penetrate into the market, penetration pricing can be followed. Promotion– The promotion will play a major role in making people responsive of the new product positioning. Various media can be used for it such as television, newspapers, social Medias and others. 5. Synopsis of Recommendation for the Future of Crabtree & Evelyn This section of the report has provided important inputs into how the company needs to move in the near future in order to remain competitive and survive for a longer span of time. Brand consistency has been found to be the key factor that each of the brand needs to maintain. Therefore, it has been recommended that Crabtree & Evelyn needs to maintain its core values as the provider of the natural products without any addition of the chemicals. It needs to deliver the product as per the promise. The ethos and values need to be provided top priority. Brand awareness also seemed to be the prime factor that the company needs to pay attention so that increasing number of customers get attracted towards it in the near future. It has been noted that it is the brand awareness that helps in cultivating a brand image. Thus, various promotional programs and campaigns needs to be conducted for the communication of the brand benefits to the consumers. Two kinds of repositioning strategies have been recommended. They are to reposition themselves as the provider of necessity products in addition to being the provider of the luxury goods. The second repositioning strategy that has been recommended has been to reposition themselves has the provider of the herbal medicines as well. There seems to be enormous scope for the herbal medicines in the UK in the coming few years. In addition to these herbal medicines has been used since thousand of years by the people. Thus, the future seems to be bright. References Aarkstore, 2011. United Kingdom: Personal Hygiene/ Personal Care Industry Guide. Reports. [Online] Available at: http://www.Aarkstore.com/reports/United-Kingdom-Personal-Hygiene-Personal-Care-Industry-Guide-118959.html [Accessed May 20, 2011]. Albaraka Mall, 2010. Crabtree & Evelyn. Shop. 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