Marketing Analysis of Aesop Pty Ltd - Case Study Example

AESOP PTY LTD By Name Course Instructor Institution Location Date TABLE OF CONTENTS 1. Executive Summary………………………………………………………………………… 2. An Introduction to Aesop Pty Ltd………………………………………………………….. 3. Sustainability Practices By Aesop Pty Ltd…………………………………………………. 4. Competitive Analysis of Aesop…………………………………………………………….. 5. Marketing Mix For Aesop………………………………………………………………….. 6. Recommendations………………………………………………………………………….. 7. Conclusions………………………………………………………………………………… 8. References …………………………………………………………………………………. 9. Appendix…..……………………………………………………………………………….. 1.0 Executive Summary Aesop is a manufacturing company based in Australia. It manufactures various range of skin care products for the hair, body and skin. The company was founded by a former hairdresser known as Dennis Paphitis (Wellis, 2012). The inception of the brand was in the city of Melbourne in the year 1987 and has since grown into an international based company that services major cosmetic suppliers and distributors globally. Additionally, the company also ventures in production of toiletries such as soaps and fragrances for both sexes. There are various stores that solely sell Aesop products as well as concept stores that sell specific products. The company also owns a store line which has been resourceful in increasing the overall yearly sales made. It is a general known fact that the company stakes are majorly owned by Brazilian cosmetics known as Natura Cosmeticos. This equity was gained for a capital exchange estimating to over $68 million (“Aesop Retail Pty Ltd”, 2012). The manufacturing of the products utilized both plant-derived substances and laboratory produced chemical to generate high quality skin care products. The distribution is done in 11 counties with over 60 retail stores demanding for supplies (Bonifacio, 2010). The range of the products is unisex and are subtle to the smell and skin types thus being ranked as excellent colognes and perfumes preferred by the customers. This self-care line is considered rather luxurious as it tailors the products to meet the clients taste with attention to every detail in terms of texture, smell, packaging and overall presentation (Melbourne, 2012). Aesop products can be found in their concept stores which are in department malls in Hong Kong, New York and beyond. There is also the option of the online market where the clients can order for their products and have them shipped and delivered to the location of their preference. 2.0 Introduction To Aesop Pty Ltd Aesop Company derives most of its inspiration from art, food, architecture and wine. The aforementioned are quite distinct thus ensuring every item has a unique aspect in its production and packaging. The company strives to encourage and motivate human efforts to improve the cosmetic world (Melbourne, 2012). According to their motto, any effort done with vision, intellect and attention to detail ought to be valued and appreciated. Every product produced by Aesop is provided with equal measure of attention this ensuring the quality is top notch and the needs of the clientele are met. The major considerations that are determinant to the type of product include the ever increasing size of the target market, the dynamic range of preference as well as both environmental and seasonal conditions (Melbourne, 2012). One of the main characteristic of Aesop is to ensure there is exhibition of thought process in making statements with every single product. This is to guarantee that besides revolutionizing the cosmetic world, they also mould and shape the community and improve on the continuity of this major brand. 3.0 Sustainable Practices. A meticulous attention to detail is needed. As with the design of an Aesop store or product label, a launch event is carefully considered. It may be modest in appearance, but it requires much thinking and brainstorming beforehand. While the company pays heed to the aesthetics of their packaging, the priority has always been the quality of what is inside the containers; the vessels are functional, minimal and humble (Macdonnel, 2011).  Aesop uses recyclable glass, plastic and cardboard as much as possible, providing it does not compromise the stability or integrity of their products. Due to reasons of hygiene and logistics they are unable to refill Aesop containers or to recycle them for the public (Macdonnel, 2011). The jars are well-suited to repurposing as storage containers for many small items, from paper clips to staples to hairpins; while Mouthwash bottles make serviceable and attractive vases (Cornford, 2008). Should you not have a use for any given Aesop container, they recommend putting it in the recycling bin along with other glass, plastic and metal waste. The company encourages people to return Aesop cotton bags for reuse whenever making purchases (Cornford, 2008). Like all responsible companies, they aim constantly to lessen their environmental footprint and to improve their practices. This is not without challenges, the continuous efforts have been driven towards attempting to improve their packaging as honestly and transparently as they can. There have been concerns surrounding the use of the Palm oil and it derivatives by the clientele as well as Health and Safety Board across the nation. To curtail the increasing of negative attention towards the products, Aesop has focused on use Sodium Palmate and Sodium Kernelate. These chemical are both found in the Body cleansing Slab as well as the Hydrogenated Palm Palmate which are both found in the package containing the famous Sage 7 Zinc Facial Hydrating Cream. Despite these efforts in changing into more skin friendly chemical for the skin products, the issue has become more complicated this making it hard to refrain from utilization of products that contain palm oil. Thus, the company has opted to use chemicals of mixed origin such as Cetearly alcohol whereby the fatty acids chains are either derived from the palm of coconut sources. This effort has been rather successful though complication such as the clientele failing to determine the origin of the oil. Despite this issue, the company has opted to enact changes that can make the products more skin friendlier and safer regardless of the processing of the products which in most cases it is difficult to regulate owing to the many hands the items go through before reaching the end consumers and the company executive management team. The issue of Palm oil sources has also been solved through utilizing only products that that have certified Sustainable Palm Oil ingredients. This solution has been aimed to establish balance in the supply chains as well as clientele mass (Jones, 2014). This balance also permits the mixing of both non-CSPO and CSPO products to enter the supply chain. The attention is majorly placed in the regulation of the CSPO produced and sold. This also includes an auditing which is conducted on the process of production of the product to ensure it meets up to the conditions stipulated (Jones, 2014). The introduction of this model has been instrumental in ensuring the accountability, certification and traceability in the supply chain is achieved and maintained according to the set standards. In the current situation, availability of products that have been certified has been quite difficult (Jones, 2014). Despite this, the industry is transforming and due to the increasing customer demand and enhancement of the verification procedure, the difficulty in accessing verified products is becoming a thing of the past. Thirdly, the company has driven its attention to the farmers who are involved in the production of Palm oil. The efforts made have been the offsetting of 100% of the annual utilization of Palm Oil Derived ingredients (Macdonnel, 2011). One of the steps taken is procuring Green Palm certification which has been instrumental in giving finances back to the farming community as both an appreciative and rewarding effort to encourage the continuous production of sustainable palm oil. This measure has thus been viewed as a means of supporting the production of palm oil which has undergone certification and also meeting up to the standards of only using products and ingredients that have been audited and certified in order to meet the demands of the segregated markets. In the pursuit of ensuring that only sustainable options are utilized in product manufacturing, the Aesop Company has committed to acting accountably, responsibly and transparently as possible in ensuring the process of sustainable manufacturing is ongoing. One of the efforts has been refraining from using animal derived products such as honey, lanolin and beeswax. It has led to the production of one of the new items in the retail and wholesale market currently. This is the new shaving brush. The product is made by synthetic silver tip fibre which replicates the functionality of badger hair and has since been the satisfactory replacement of the animal derived fibre (Macdonnel, 2011). The product has been available since 2014 and it has been preferred due to the rich creamy lather form it produces making the shaving process a comfortable and relaxing experience. Owing to these efforts, it is valid to state that the company has redirected its mission to guaranteeing that they deliver products that are high in quality and also ensure sustainability is maintained. The main question asked by the clientele has been whether the products produced by the company are organic in nature. This has been due to the use of terminologies such as ‘pure; which has cast confusion over the various organizational practices conducted by various cosmetic companies (Farrow, 2013). To further elaborated on how pure the products are it is imperative to understand that Aesop formulation are generated in a laboratory setting thus it would be hypocritical to mention that the products are organic. However, despite the reality that the products are neither natural nor organic, it is imperative to state that the production team ensures that the products are manufactured using high quality ingredients which are either botanical or synthetic guaranteeing the safety and health of the customer as well as meeting to the various preferences of the supply chain (Farrow, 2013). Besides quality assurance, the products do not contain mineral oils, colorants, pearlising agents and parabrens. The following listed products are the only one whose formulations contain synthetic fragrance compounds - Marrakech Intense Eau de Toilette and Perfume - Rejuvenate Intensive Body Balm   Many of the formulations developed are plant derived and these are considered organic. There are those that contain in ingredients produced by farmers utilizing inorganic techniques and some of the substances developed in the Aesop chemical laboratories (Burns, 2003). The only determining factor is that the products should always be high quality regardless of their origin. This is the sole aim of the company in cosmetic production. It is important to note that the company is well aware of the befits that are reaped through farming of organic plants with regards to health, however, they take on a more realistic and a practical approach that only allows for the use for limited use of organic produce (Burns, 2003). One of the main reasons that disallow continuous usage of organic products is constant availability. This means that at a particular season, the ingredient might be in limited amounts thus slows the manufacturing process and less the production capacity. During the process of packaging, the labeling process ensures the clientele is warned about handling of the various products produced by the company. They are cautioned to be careful to avoid purchasing products that claim to be organic with no specifications (Dezeen 2014). This is mainly because most cosmetic companies label their products as organic, yet there are less appreciable amounts of organic ingredients. This validates that Aesop is committed to acting in a responsible, accountable and transparent manner. Another effort observed is that the chemists who are employed in brand production do not test the end products on animals (Dezeen 2014). They also do not hire external parties to conduct these tests. This is seen as an effort in sustaining the animals as part of the environment. This does not indicate that the product are not verified for safety. The tests are conducted on human volunteers prior to being launched in the public eye. An external agency is also hired to perform toxicology tests and verify the products. 4.0 Competitive analysis There are quite a few in the organic market. The organic skincare space has been heating up,and many of the best are coming out from Australia. Kiehl, Caudalie, Jurlique, Kora Nude, Olio Lusso, Tata harper, Kari Gran and a couple of smaller brands such as Fig and Yarrow and Herbivore are similar in nature with their focus on organic and natural (Pitman, 2013). Aesop shuns most of the marketing techniques widely embraced by other brands. The packaging is uniform, 79 formulas housed in near-identical brown bottles and squeezable beige tubes (Pitman, 2013). It is designed this way so as not to detract attention from the products inside. While other companies shout about organic, natural ingredients, Aesop celebrate science and understand the need for a blend of well-chosen man-made ingredients with exceptional botanical ingredients to make remarkable products. 5.0 Marketing mix Most brand or marketing directors have at least considered the possibility of adding social media into the marketing mix to tell their story.  Amongst the various questions popularly asked concerns how the Aesop Company is able to win fans and followers over and attain actual results (Pitman, 2013). Secondly, questions have also been raised on how developing and maintain the company has been instrumental in achieving marketing and brand objectives. The following methods aim at answering the aforementioned queries: A. Amplified campaigns Integrating social media with the marketing campaigns allows Aesop to capture the audience in one central place as they go. With the available platform offered by social media, the company can engage, listen, reward and interact with customers who prove their loyalty to their brand. Such clientele are branded as the advocate army that aim to spread awareness of the products manufactured by Aesop and the great benefits that can be reaped from using them B. Verbal Marketing between campaigns Engaging fans and encouraging them to participate on an ongoing basis means that our brand story is being continually shared and remains front of mind.  We also get the added benefit that each participatory action is viral in nature.  Take Facebook as an example: each time a fan comments, uploads images or likes a page; this activity is visible to all their friends“ (Aesop-Fabled” , 2008). C. Personal recommendation Personal recommendation takes form of visibility acts. This includes friends recommending he products to each to other and passing on the information concerning the same. This illustrates that the brand is worth looking at and purchasing as well as benefiting from its use. Getting the right choice of skin care product is a powerful tool and thus this type of information passage might be quite resourceful in empowering clients with the knowledge of what is good in the market. D. Build buzz Communities help to build buzz about forthcoming product launches, new services, store openings and so on. This has been mainly achieved through hyping a product and having the community engaging in interactions that further spread the awareness of the various events organized by the company as a means of increasing product awareness and acceptance. The community is also provided with a sneak preview of what the product entails and how the event will benefit the particular setting (Speedy, 2014). This type of buzz is a guaranteed win and is one of the most utilized mechanisms of promoting and launching a new product in the supply chain. E. Unique Presentation In an interview conducted by Denzeen, the founder of skin care brand Aesop, Dennis Paphitis mentioned that in the cosmetic marketing scene, there is direct correlation between two factors. this are basically customer traffic and captivating stores spacing. According to this self made millionaire the presentation of the signature stores is a determining factor in controlling the customer traffic and thus serves as the main marketing strategy in a day-to-day scenario (Crisell, 2013). Owing to the discovery of this reality, the former hairdresser has worked with various architects all over the globe in designing the look of various stores in different part of the world to match the customers’ national heritage, culture and their classical preference. This strategy has been effective and thus liven the ordinary course of mindless business ventures as depicted by other cosmetic lines (Crisell, 2013). With regards to the relationship between interior décor of the stores and the sales, Dennis reiterates that the detail inculcated in designing the space has been effective in increasing sales as it is both activating to the eye and allures the customers assuring them of a classy skin care line that will cater to their needs. 5.1 Main products Aesop has been able to maintain a more fierce and independent approach which is geared towards development of product research. The team which has spearheaded this campaign has been the chemical scientist at the Head Office. They have constructed the main laboratory where all major research is driven towards ensuring the products ideas, prototype development and research blends all meet up to the set standards and focus on quality assurance and customer satisfaction. The ingredients are received from the most reliant and reputable suppliers worldwide and with the employment of cutting edge technological advancement and inculcation of verified and long lasting scientific practices the formulations are generated. Owing to the assurance of the quality maintenance during the product development, it is only valid to state that Aesop products are acceptable in the international market and protects the environment by maintaining its sustenance. According to various publications, Aesop proudly recognizes itself as a product focused company which aims at producing and launching new products. These products are for the body, skin and hair and meet the clientele needs with utmost precision. Some of the latest and fast moving products include: - Aesop Amazing Face Cleanser. - Aesop B Triple C Facial Balancing Gel. - Aesop Remove. - Aesop Parsley Seed Anti-Oxidant Eye Serum. - Aesop Flinders Lane. - Aesop Oil Free Facial Hydrating Serum. - Aesop Resurrection Hand Wash. - Aesop Camellia Nut Facial Hydrating Cream. - Aesop Tokyo. - Aesop Rind Aromatic Body Balm Tube. - Aesop Coriander Seed Body Cleanser. - Aesop Tea Tree Leaf Facial Exfoliant. - Aesop Rejuvenate Intensive Body Balm Tube. - Aesop Perfect Facial Hydrating Cream. - Aesop Moroccan Neroli Shaving Serum. - Aesop Gentle Scalp Cleansing Shampoo. - Aesop Geranium Leaf Hydrating Body Treatment. - Aesop Sage Scalp Cleansing Shampoo. - Aesop Rose Hair & Scalp Moisturizing Masque. - Aesop Parsley Seed Facial Cleansing Oil etc. 5.2 Suppliers Notable suppliers of skin and beauty care products include Babor, Benedetta, Biodroga Systems, Aromafloria, Aquatonale, 4angelips etc (Heather, 2013). 5.3 Marketing Strategy The company relies heavily on verbal marketing and thus less capital is utilized in getting the products in the lager market target. The distribution is also done by the company whereby the stores get their supplies delivered (Heather, 2013). The retailers also have the option of purchasing directly from the manufacturers. 5.4 Target customers Aesop targets customers at the age range between 25 and 45 (Chu, 2013). The price point is not low, which makes it more of a lifestyle choice versus an entry level. It is a brand that people in their mid-20s start getting serious on due to price point and the beginning of real skincare concerns. It is unisex which is very different from some of the other beauty brands (Kuehlwein, 2012). The packaging and brand lends itself to both men and women, and you can see this in the choice of partnerships. Aesop focuses on organic products and often plant and herb formulations. This lends itself well to people who want to be chemical free, but yet want effective products, and are concerned about what they put in and on their bodies (“What Is The Target Market For Aesop Cosmetics”, 2011). 6.0 Recommendations A. Crowd sourcing Often overlooked, social media has been an incredibly useful listening and learning tool.  Community questions, run polls, and surveys and set up listening channels around key words to gather invaluable insight.  Social sites have been instrumental in crowd sourcing owing to the digital technology revolution which has allowed people globally to meet on an internet interface and interact (Kuehlwein, 2012). Crowd sourcing has since been easier as a larger market is reach and product awareness is achieved. Through this avenue, the Aesop Company can been able to annually increase its customer’s base and sales. B. Brand Loyalty Aesop is highly concerned about the royalty of its customers. This is because customer loyalty is a determinant in the sales as well as the overall success of the company. To guarantee that loyalty remains a constant factor, the company should aim at platform where the clients are allowed are engaged in various activities set up by the various company branches (Perman, 2011). This experience will give the customers the feel that they are part and parcel of the brand and thus ensuring they are ever loyal. They should also be allowed to provide their opinion on how the company can improve the products, which products should be manufactured to meet their tastes, their customer level of satisfactions amongst others. Such efforts will continuously increase advocacy and loyalty to the brand. . C. Customer Service In the customer care department, the issues submitted by the clients are handed via social networks. According to the branch manager, this is a subtle way of showing the customers that the company indeed cares about their concerns and needs (Perman, 2011). Incase negative comments and criticism is received, the department should focus on ensuring searches are set up which listen out to the needs of the consumers and their concerns regarding the brand and its products. This will be an indication that the company is not afraid of tending to its clientele and thus by responding to issues, the negative aspect will be neutralized and thus the customers will be satisfied and content with the services offered. Conclusion Aesop has continuously won over the heart of skin care lovers. This is due to the constant improvement of their sustainability practices which are in accordance to the law and also the introduction of new products which are tailored to suit the various skin types that exists. Their stores have also created quite a buzz with the amazingly designed interior décor that makes the shopping experiences worth the customer’s while. With this trending attention in the Skin care business; Aesop should aim at improving it overall customer loyalty, increasing its market size and mastering the art of customer care service to ensure that the company remains in the race with the other big league skin care companies. References “Aesop Retail Pty Ltd”, 2012. BloombergBusiness. “Aesop-Fabled” 2008, The Independent. “What Is The Target Market For Aesop Cosmetics” 2011, Quora. Bonifacio, F 2010, Natura Acquires Majority Stake in Australia Skin Care Company. GCI Magazine. Burns, J 2003. Pure Vision, TheAce. Chu, K 2013, Aesop Sees Growth From Asia, South America. TheWallStreetJournal. Cornford, M 2008, The Man Behind Aesop: Dennis Paphitis. Vogue. Crisell, H 2013, Aesop: The Cult Beauty Brand That Tries Not to Be. The Cut. 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