Aok Repositioning for a European Launch Julia Albrecht Agenda 1. Analysis of Aok 2. Competition Analysis 3. Market Trends 4. Recommendations for Aok 5. Packaging Brief Aok • Skin care brand • Slogan: “Naturally effective” • Claims to provide “Naturally clear skin at every age” • Its roots lie at the Baltic Sea • Comprehends nature as a source of beauty • Belongs to • Mass-market brand, distributed through supermarkets, department stores and drugstore chains • Available in Germany and Austria Brand History • 1885: Invention of „Seasand Almond-bran“ by the pharmacist Wilhelm Anhalt in Kolberg (health resort at Baltic Sea, today Poland) • 1903: Aok becomes registered trademark • Aok = Anhalt Ostseebad (health resort Baltic Sea) Kolberg • Early mission: „To preserve and accentuate natural beauty“ „Beauty is a gift“ • First products: Almond-bran powder, Almond-bran Soap and Seasand Almond-bran (used as Peeling or Mask) Brand History • 1974: Introduction of skin care series for different types of skin (cleansers & creams) • 1982: Introduction of “First Beauty” to target teenagers with impure skin • 1983: Henkel acquires Aok cosmetics • 1988: Introduction of the slogan “Naturally effective” • 2004: Introduction of “Pur Balance” to target above-20-year-olds with impure skin • 2006: Introduction of “Clear Action for men” to target male teenagers • 2007: Relaunch and Launch of “Pur Lift” to target above 30-year-olds with first wrinkles and impurities Packaging and Portfolio Evolvement “Vitamin E“: reduction of first wrinkles; canceled in 2006 “Kräuter Aktiv“ for greasy and mixed skin; with herbs “Pur Balance” reduces impurities; for >20-year-olds “First Beauty Cooling“: extra strong against pimples Extra moisturizing for dry and sensitive skin with almond “First Beauty” 1982 1903 “First Clear“ (Anti-Acne) 1980s 1990s Since 2000 “Clear Action“ for men; canceled in 2008 Aok Today Cancelation in 2008 Product Portfolio First Beauty Pur Balance Pur Lift Portfolio Cleansing (4 SKUs) Care (2 SKUs) Cover (4 SKUs) Cleansing (5 SKUs) Care (7 SKUs) Cleansing (4 SKUs) Care (5 SKUs) Target Young women < 20 Young women >20 Women >30 Benefit Pure skin + mild care Pure skin + moisturizing Pure skin + Lifting effect Ingredients Mint + Yoghurt extracts Tea + Ginseng extracts Soy-protein + Ginseng extracts Ø Price € 4,99 € 5,99 € 6,99 Packshots Internal BCG Matrix Growth Pur Lift Pur Balance Accounts for around 40% of Brand Revenues First Beauty Clear Action Market share Communication History 1903 • Informative • Explaining the Aok philosophy 1926 • Informative and emotional • society ladies 1970s • Informative • The correct way to clean and care Communication History 1980s • The “Aokanerin” as brand symbol: active, selfconfident, natural women 1997 • Sales Promotion “Get to know your skin” • Accompanied by personal consultation 2004 • Pur Balance TV Spot • Setting: Baltic Sea Communication Today • Baltic Sea always chosen as setting • Starring naturally beautiful women • Emotional appeal by using humor • Example: current spot for Pur Lift (Summer 2007) http://de.youtube.com/watch?v=TMrzeGXcrfM Brand Equity Pyramid Communication Core Product Core Less loyalty because no more products for the “old” customers? High credibility due to history High quality ingredients Effective and reliable reduction of impurities Gentle & nourishing Brand Resonance Consumer Judgements Brand Performance Consumer Feelings Brand Imagery Skin care With natural ingredients For impure skin Brand Salience (Awareness) Reliability Tradition Pure skin for women at every age For natural beauty Brand DNA Natural beauty Natural ingredients Pure skin The sea Cleansing and care For women at every age Main Competitors 1. First Beauty – – – – – – Bebe Young Care ( only in Germany) Clearasil Garnier (Pure) Neutrogena (Visibly Clear) L‘oréal Paris (Pure Zone) Nivea Visage Young 2. Pur Balance – Garnier Pure – Neutrogena (Visibly Clear) – Nivea Visage Young 3. Pur Lift – – – – – Nivea Visage Olay L‘oréal Paris Garnier (Nutritionist) Neutrogena (Pure Glow) + competition from Store Brands Main Competitors – Clearasil • The first effective acne medication ever introduced for teenagers; created in 1950 by Ivan Combe in the US • Today the brand belongs to Reckitt-Benckiser • Product lines: Deep Cleanse, Spot Control, Ultra, Blackhead Control • Mainly cleansing and special treatment products • Brand DNA: Fights acne Provides clear skin Aggressive Causes confidence Dries out skin For teenagers Main Competitors – Neutrogena • First product under Neutrogena brand was a soap, that restored the skin pH, rinsed quickly leaving no soap residue (invented1954 in the US) • Johnson & Johnson acquired the brand in 1994 • Products today: Facecare, Bodycare, Haircare, Suncare, decorative cosmetics; in Europe only Facecare and Haircare • Facecare Portfolio: Pure Glow – cleansers and moisturizers that brighten skin and leave it glowing, like a spa treatment Deep Clean – cleansers that penetrate deep into the pores dissolving dirt, make-up and oil Visibly Clear – Anti-bacterial cleansers and special treatments that fight and prevent spots and blackheads Norwegian Formular – moisturizers and cleansers that make dry skin soft and healthy Main Competitors – Neutrogena • Brand DNA Norwegian Formula Hand-cream Dry skin Dermatological Celebrity spokespersons Acne-wash Main Competitors – Garnier • Garnier originally was a Haircolor and –care brand • The brand was acquired by L‘oréal in 1964 • Products today: Haircare, Haircolor, Hairstyling, Facecare, Bodycare, Suncare • Facecare portfolio (main subbrands): Pure - cleanses and purifies oily and impure skin Total Comfort - provides 24-hour moisturization to soothe and protect dry skin Nutritionist – combats signs of dullness, fatigue and dryness Ultra Lift - reduces deep wrinkles, makes the skin firmer and smoother (Re-) Density - reduces wrinkles and plumps-up the look of mature skin Main Competitors – Garnier • Brand DNA Take care Dynamic Natural ingredients Laboratoires Natural beauty Colorful Main Competitors – Nivea • Nivea Cream was invented in 1911 by Beiersdorf in Hamburg, Germany • Nivea was the first stable oil in water cream in the world • Soap, Powder and the first haircare products (“Hair-milk”) followed • Products today: Facecare, Bodycare, Handcare, Bathcare, Haircare, Deodorants, Suncare, Lipcare, Decorative cosmetics, Men’s Care, Babycare • Facecare portfolio (main subbrands): Nivea Visage Young – for mixed and oily skin Nivea Visage Sensitive – for sensitive and dry skin Nivea Visage Oxygen Power - Oxygen boost & all day hydration for all skin types Nivea Visage Q10Plus – Anti-wrinkle, with coenzym Q10 Nivea Visage DNAge – Anti-Age, increases surface skin cell renewal Main Competitors – Nivea • Brand DNA Caring Trusted brand Natural beauty Nivea = the “snow-white“ Family Blue and white Pure and simple Main Competitors – L‘oréal Paris • L‘oréal originally was a Haircolor brand • In 1907, Eugène Schueller, a young French chemist, developed the first L’oréal innovative hair-color formula • Products today: Haircolor, Haircare, Hairstyling, Facecare, Bodycare, Suncare, Men‘s care, Decorative Cosmetics • Facecare portfolio (mainly care, few cleansing products) Pure Zone – Continuous purity for Teenage skin Hydrafresh – Active Hydration for young skin Nutrissime – Intense hydration for sensitive and dry to very dry skin Wrinkle Decrease (Collagène) – Active care fighting first wrinkles Derma Genesis– Helps to renew the skin cells for a younger looking skin Revitalift – Intensive Anti-wrinkle and firming from age 40 Age Perfect – Care for mature skin from age 50 Age Re-Perfect – Care for very mature skin from age 60 Main Competitors – L‘oréal Paris • Brand DNA Innovative “Because we are worth it” Advanced technologies Promises not always believable Paris High-end Main Competitors – Olay • Oil of Olay Beauty Fluid was born in the early 1950s • The Beauty fluid was developed to give women what they really wanted: younger-looking, beautiful skin • In 1985 the brand was acquired by Procter & Gamble • Facecare portfolio today: Classic – Range of moisturizing beauty fluids and cleansers Complete - deep, rich moisturization with added vitamins and SP15 Total Effects – fights 7 signs of ageing Regenerist – regenerates the skin and makes it look younger Definity - helps reduce the appearance of discolourations, age spots, uneven skin tone and fine lines Main Competitors – Olay • Brand DNA Anti-Age Oil Advanced technologies For older women Beauty treatment High-end Competitive BCG Matrix Growth Market share Competitive Positioning Young Target Older target should not be neglected Growth! Men Women Old Target Competitive Positioning Hedonistic Natural Ingredients High- tech Formulas Natural positioning should be strengthened Functional Competitive Positioning Traditional Traditional positioning should be strengthened, more skin problems targeted Growth! Adresses few skin-problems Adresses many skin-problems Innovative Competitive Brands by Skin Type Anti-Age Mature skin Normal skin Sensitive/ dry skin X X x X X X X X X x x x X x X x X Greasy/ Mixed skin Impure skin x x x x X X X x Opportunity for stretching X POP/ POD Aok vs. Competitors POPs PODs • Synthetic ingredients • Baltic Sea ingredients • Botanic extracts • For pure skin at all ages • Natural Beauty • Addresses combination of impure skin/ wrinkles • Promise of clear skin • Long tradition Aok Weaknesses and Challenges • Low Market share and growth in Germany • Not targeting older segment • Only focusing on impure skin • Claiming to be natural while it is far from being organic threat from real organic products • Loss of roots (Pharmaceutical, Baltic Sea) • Brand name without meaning to non-German consumers Not strong and differentiated enough to survive in European mass-market Aok Today and Future Direction Natural Native Functional Adressing many needs Adressing one need Cosmopolitan Emotional High-tech The European Face Care Market • The face care market has been growing in the past and is forecasted to grow in the future at a moderate rate • Supermarkets and hypermarkets are the most important distribution channels (42.7%) • Specialist retailers and pharmacies together distribute a further 44.7% of the market's revenue Market Trends 1. Anti Age – Biggest segment in face care market – In the past two years (2005-2007) this segment has grown more than 50% in absolute value (Source: Datamonitor) (Source: Datamonitor) Skin Care Revenues by age (Dec. 2006) 18 - 24 Jahre 25 - 29 Jahre 30 - 34 Jahre 35 - 39 Jahre 40 - 44 Jahre 45 - 49 Jahre – Older population makes up most of face care revenues 6,7 7,7 7,7 – Growth is very likely to continue due to ageing of population 10,2 11,2 9,8 50 - 59 Jahre 17,2 60 - 69 Jahre 17,6 70 Jahre und älter 11,9 (Source: Consumer Panel Copras) (Source: Eurostat) Market Trends 2. Wellness – – Combines health with beauty, sport, tourism, urban daily life, and environmental awareness “Wellness focuses on positive, preventative action — getting the body into shape and keeping it that way in spite of stress, germs, age, and anything else that ails us” – Business Week (April 11, 2005) estimates the U.S. market at $400 billion – Skin care brands opening spas (new ways of distribution) Example: Biotherm • Facecare, Make up, Bodycare, Suncare, Men‘s care with thermal plankton • Over 50 years ago Biotherm biologists discovered thermal plankton's affinity with the skin and its effectiveness • 20 years of research were necessary to obtain a more active and concentrated form: Pure Thermal Plankton • Luxury brand distributed through specialist stores and pharmacies Example: Nuxe • Founded in 1957 by a Paris pharmacist with a fascination for phytotherapy and aromatherapy • Cosmetological concept combining nature, health and beauty • NUXE = Nature + Luxe (Luxury) • Principles: no mineral oils, non-comedogenic products, no synthetic coloring agents, no animal ingredients • Main products: Facecare, Bodycare • The brand owns several Spas across Europe Market Trends 3. Natural and Organic Cosmetics – Growth of more than $2 billion, to $6.1 billion between 2002 and 2006 and projected sales of nearly $10.2 Billion until 2012 in the US (Source: "Natural and Organic Personal Care Products in the U.S." report) – More than € 1 billion in sales and a growth of 20% in Europe in 2006 (Source: The European Market for Natural Cosmetics, report by Organicmonitor) – Organics personal care market in the UK valued at $12.0 million in 2001, rising to US$16.3 million in 2006; forecast for 2011 is $21.9 million (Source: Datamonitor) – Germany with largest growth: projected market share of organic cosmetics of 10% in 2012 (Source: The European Market for Natural Cosmetics„ report by Organicmonitor) Market Trends 3. Natural and Organic Cosmetics – Organic cosmetics are usually certified to ensure credibility – There is no common European certification – The Ecocert (France) and the Soil Association (UK) label are internationally used; however, each body uses slightly different standards for organic cosmetics Example: Yves Rocher • “The world leader in botanical Beauty Care” • Natural, accessible beauty – beauty for every woman • The Yves Rocher product line contains over 150 active plant ingredients • Founded over 40 years ago by Yves Rocher • First product: a simple cream, based on the Lesser Celandine plant and produced in the family attic • Distribution through own stores Example: Weleda • Anthroposophic and Homeopathic Medicines and Natural Bodycare • Founded in Switzerland in 1921 by the Dutch medical doctor Ita Wegman and the renowned philosopher Rudolf Steiner • Committed to producing naturally, ethically, safely, without animal experimentation and without damaging the environment • Organic certification: BDIH (German) • Product portfolio: Facecare, Bodycare, Bath & Shower, Suncare, Babycare, Haircare, Men‘s Care, Dental Care, Deodorants • Distribution via specialist stores, pharmacies and drugstores Example: Sanoflore • Founded 20 years ago in south-eastern France • Manufactures organic cosmetics and aromatherapy products • Handles all the stages in the aromatic and medicinal plant chain, from cultivation with partner farmers to the finished product • Acquired by L‘oréal in 2007 • All products are certified by French organic label Ecocert • Distribution through pharmacies and specialist shops Wrap-up: Market Trends • The face care market in Europe is projected to grow and therefore bears some future potential • As the population is growing older, Anti-Age is a continuing trend • The Wellness Trend has mainly been embraced by luxury brands • The natural & organic segment is experiencing tremendous growth • A difference is to be made between natural (e.g. Yves Rocher, Nuxe) and organic (e.g. Weleda, Sanoflore) cosmetics organic products are usually certified! • Natural & organic products are mostly distributed through own stores or specialist stores and pharmacies Recommendations: 1. Strengthen Natural Positioning • Aok is already associated with natural cosmetics by German consumers (in a study conducted by IRI in 2006, 20% of respondents considered Aok to be natural) • In order to be successful throughout Europe, the brand needs to build and communicate its natural image further – Stress natural ingredients – Claim “not tested on animals” “Leaping Bunny” Logo Henkel already avoids animal testing wherever possible – Ultimately the brand’s products should become organic certified by “Ecocert” Recommendations: 1. Strengthen Natural Positioning • Put emphasis on educating consumers as there is still ambiguity about what “organic” means through website, PR campaigns, advice at POP, Promo-material • Distribution through Drugstores, selected Super- and Hypermarkets make organic cosmetics available to the masses! • Upgrade the brand by also distributing through specialist stores and pharmacies (new competition!) • Maintain affordable prices, as high prices are the main barrier for not buying organic cosmetics (Source: IRI Shopper Study in Germany, 2006) The first mainstream organic cosmetic brand: traditional, with modern insights; high quality, but affordable Recommendations: 2. Stress Heritage • Exploit Baltic Sea heritage to support the natural/ organic positioning and stress wellness aspect more emotional appeal! • Educate consumers about “Kolberg”: Baltic Sea Resort set-up organic spa at Baltic Sea • Develop more products with organic ingredients from the (Baltic) sea, e.g. with algae extracts, sea minerals, mud, orchid extracts • Use promotions related to the Baltic Sea e.g. sweepstake with wellness weekend at Baltic Sea as prize • Stress that the brand was founded by a pharmacist to build credibility and upgrade the brand Aok‘s heritage is unique giving it a POD; even when facing new competition in new distribution channels Recommendations: 2. Stress Heritage • Leverage secondary brand equity: Beach & Sea Wellness Wind Baltic Sea Vacation Rich nature Relaxation Recommendations: 3. Adress More Than One Need • Aok used to address consumers >40 but with its repositioning as “providing clear skin at every age” it started to neglected them • Mostly teenagers and people <40 suffer from acne and impurities; “Older” skin has different needs Focus too narrow; no room to extend the brand! • Get rid of the claim „Clear skin at every age“ • Come back to a broader positioning “ Natural beauty for any skin” • Introduce product lines for other skin types (normal skin, sensitive & dry skin) and especially Anti-Age care! Broader Positioning “Natural Beauty for any skin” focuses on Aok’s core competencies and gives room for brand stretching (even into Body- and Bath & Shower Care possible!) Recommendations: 4. Modify Name, Logo & Packaging • Give a more internationally understandable association to name: Aok = Apothecary Anhalt‘s Organics from Kolberg • Keep claim “Naturally effective” • Modernize the logo; link it to Baltic Sea Example: dune/ waves instead of leaf • Adapt packaging to look/ be more natural – Recyclable materials (no plastic!) – Colors more natural (not as bright) – Abstract plant and sea motives – Sophisticated/ high quality look • Give the products a more sophisticated appearance Wrap-up: The New Aok Aok – Naturally effective Naturally beautiful skin Baltic Sea Organics First Beauty Pur Balance Sensitive Care With Mint & Chamomile Clarifying and Caring For impure teenage skin With Algae-Extracts & Sea-Minerals Moisturizing, fighting impurities For Mixed Skin With Sea Buckthorn & Aloe Vera Moisturizing and Nourishing For sensitive and dry skin Pur Lift Pur Age With Soy-Protein & Rose-Extracts Moisturizing and Firming Fights first lines With Orchid-Extracts & Brown-alga Intensive care Anti-Age Apothecary Anhalt‘s Organics from Kolberg New Competitors (Organic) • Weleda • Dr. Hauschka – Founded by chemist Dr. Rudolf Hauschka in 1967, inspired by philosopher and scholar Dr. Rudolf Steiner – Holistic view of health and well-being: Formulations are based on an understanding of the way skin works and its relationship with overall health • Sanoflore • Lavera – Founded in 1987 by German Thomas Haase – Based on idea to provide cosmetics for sensitive and allergyprone skin; live a healthier lifestyle Competitive Positioning Link to specific natural area Simple accessible Anthroposophist approach Link to nature as a whole Competitive Positioning Medical Specialist Distribution Mass Distribution General POP/ POD Aok vs. Competitors POPs PODs • Natural ingredients • Baltic Sea origin • Organic certification • Accessible and simple • Natural Beauty • For all skin types • Based on tradition but contemporary • For everybody European Launch • Germany = lead country – Biggest market for organic cosmetics with highest growth rate • First launch in Northern European countries – Proximity to Baltic Sea – Prone to organic products (e.g. organic food sales in Denmark grew 65% during the past three years (Source: Copenhagen Post, Feb 2008)) • Next launches Italy and France – France next to Germany with highest growth rate of organic segment – Italy next to Germany biggest organic market Source: Organicmonitor Packaging Brief (1) GENERAL PRODUCT INFORMATION • Product: Aok Skincare Range with 5 different Sub-lines • Key Communication Objectives for packaging: – Communicate revised brand image: natural, organic, rooted at Baltic Sea, accessible, for naturally beautiful skin – Clarify that products are organic – Reflect high quality and simplicity Packaging Brief (2) BRAND INFORMATION • Product Brand: 5 subbrands 1. First Beauty 2. Pur Balance 3. Sensitive Care 4. Pur Lift 5. Pur Age • Range Brand: Aok • Corporate Brand: Schwarzkopf & Henkel only on back of the package! • Symbol of Guarantee: “Ecocert” organic label Packaging Brief (3) PRODUCT INFORMATION • Product Category Name: Organic Skincare • USP: 100% natural, kind to the skin, for naturally beautiful skin – First Beauty: fights acne, provides clear skin – Pur Balance: fights impurities and moisturizes, provides clear skin – Sensitive Care: moisturizing and nourishing, for sensitive and dry skin – Pur Lift: clairifying and firming, fights first lines – Pur Age: nourishing and lifting, Anti-Age care • Competitive Packages: – Garnier – Weleda – Lavera Packaging Brief (4) PRODUCT INFORMATION • Relative quality level: same quality as Lavera and Weleda; a bit lower quality than Garnier • Relative price level: (slightly) lower than competitors • Degree of sophistication (design): sophisticated to reflect quality, but still accessible to a broad mass • Illustrations/ Photographs: Ingredients abstract plant motives • Product Ingredients: plant and sea extracts – – – – First Beauty: mint, chamomile Pur Balance: algae-extracts, sea-minerals Sensitive Care: sea buckthorn, aloe vera Pur Lift: soy-protein, rose-extracts Packaging Brief (5) TARGET MARKET INFORMATION • Target consumers‘ sex: female • Target consumers‘ age: 12 - 65 – First Beauty: 12-20 – Pur Balance: 20-35 – Sensitive Care: 20-40 – Pur Lift: 25-45 – Pur Age: 35-65 • Target consumers‘ socio-economic status: tendency to be well educated, tendency to high income; however Aok wants to make organic cosmetics accessible to the broad mass! Packaging Brief (6) PACKAGING SPECIFICS • Global image of pack: High quality, timeless, but not oldfashioned, natural, simple but with a certain degree of sophistication • Type of pack: glass jars in cartons (recyclable paper!), aluminum tubes, glass bottles in cartons • Design Example: Korres (http://www.korres.com/) References • http://www.aok-kosmetik.de/ • http://www.henkel.com/cps/rde/xchg/SID-0AC83309-F2B730AE/henkel_com/hs.xsl/12114_COE_HTML.htm • http://www.brandzeichen-pr.de/downloads/aokbuch.pdf • http://www.clearasil.co.uk/ • http://www.clearasil.de/ • http://www.biactol.fr/ • http://www.referenceforbusiness.com/history2/93/Neutrogena-Corporation.html • http://www.neutrogena.de/nde/ • http://www.neutrogena.com/ • http://www.garnier.co.uk/_en/_gb/home.aspx • http://www.garnier.de/_de/_de/home.aspx • http://www.loreal.fr/_fr/_fr/index.aspx • http://www.lorealparis.com/ • http://www.lorealparis.co.uk/ • http://www.lorealparis.fr/ • http://www.fundinguniverse.com/company-histories/LOreacute;al-Company-History.html • http://www.olay.com/ • http://www.olay.fr/ • http://www.nivea.co.uk/home • http://www.nivea.fr/home • http://www.nivea.de/home • IRI Trade Panel (Henkel internal information) • Copras Consumer Panel (Henkel internal information) • Brand stats: July/August. Brand Strategy, Jul/Aug2006 Issue 204, p50-51 References • Facial Care Industry Profile: Europe. Facial Care Industry Profile: Europe, Dec2007 • Facial Care Industry Profile: Europe. Facial Care Industry Profile: Europe, Dec2006 • “Three trends you must know“. Drug Store News, 2/11/2008, Vol. 30 Issue 2, p90-92 • Get Wellness Soon. By: Schwartz, Meredith. Gifts & Decorative Accessories, Feb2008, Vol. 109 Issue 2, p32-38 • European naturals market approaches € 1bn. Soap, Perfumery & Cosmetics, Oct2006, Vol. 79 Issue 10, p45-45 • http://www.organicmonitor.com/100160.htm • http://www.sanoflore.net/accueil.cfm • http://epp.eurostat.ec.europa.eu/cache/ITY_OFFPUB/KS-EH-06-001/EN/KS-EH-06-001-EN.PDF • http://www.guardian.co.uk/business/2007/apr/09/fashion.healthandwellbeing • http://www.biotherm.fr/_fr/_fr/women/index.aspx • http://www.nuxe.com/home/index.php?language=en • http://www.yves-rocher.com/fr/ • http://www.weleda.de/ • http://www.sanoflore.net/accueil.cfm • http://www.ostseegebiet.de/ • http://www.ruegen.de/3221.html • http://www.denmark.dk/en/servicemenu/News/BusinessNews/OrganicFoodsBigGreenFriend.htm • http://www.drhauschka.com/about/ • http://www.lavera.co.uk/ • http://www.lavera.de/ • http://www.ecocert.com/?lang=en • http://www.kontrollierte-naturkosmetik.de/ • http://www.soilassociation.org/ • http://www.korres.com/ • http://www.dupuisgroup.com/content/pdf/PackagingBrief.pdf
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