The Hit List

The Hit List

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  MARKETING n by ALISA MARIE bEyER MATTERS The Hit List The top five crucial initial steps for launching a new beauty business. L aunching a beauty business, let alone a successful one, is a delicate dance of elements: market research, product before you can even think about development and, let’s not forget, good old- fashioned ingenuity. In fact, launching a launching a new beauty business, beauty business requires keeping so many plates up in the air, it’s easy for new brands you have to know the marketplace entering this ring to become overwhelmed with the details before they’ve even hit the inside and out. product development stage. But it doesn’t need to be this way. The Benchmarking Company (TBC) attention to your idea in-market? Why might what intelligence will be most beneficial has worked with large and small brands, she not pay attention? Take time and flesh out to your new beauty business and tailor all established brands and newbies, and has this idea, and perhaps even consider vetting research efforts in support of this goal. clearly established that, regardless of the stage it out with a consumer test or study before of development of your company or product, you start writing checks to the development houses and PR firms, and you will be way Step #3: Point Out the Difference for the best chance of success in the market, a game plan and a blueprint needs to be in ahead of the pack. Having a point of difference is important place before too many plates are up in the from a product standpoint, but what about air. These established plans will guide all the from a business standpoint? How will your developmental aspects of a new business and Step #2: Know Your Audience/ beauty business be different from the Estées, new brand. Although the following five steps Know Your Market Almays and Cover Girls of the world? When are not all the steps that must be taken, they it comes to points of difference, how and are key building blocks that will help you kick- Before you can even think about launching a where you decide to stake your claim will off your new venture with a solid foundation new beauty business, you have to first know have a direct impact on every aspect of your so you can hit the ground running. the marketplace inside and out. Who are business: profits, innovation, development, the leaders? Who’s entering the arena and growth, creativity and even success. Think who’s leaving? What products do consumer both creatively and strategically about how Step #1: Have an Idea, But Not publication beauty editors love—and, more you will both craft this difference and how you importantly, what products are consumers will share it with your consumer—for which Just Any Idea buying and what keeps them clamoring for you have more options than ever: packaging In order for your beauty business to succeed, more? Nearly as important as having a great copy, editorials and most notably, your online you have to have a truly unique and different idea, have a thorough understanding of the presence. Twitter, Facebook and YouTube are idea on which to lay the foundation of your competitive market where your new beauty great vehicles to help carve out this difference entire operation. Have a new beauty business business will ultimately be living and breathing. and maintain it with an incredibly diverse and idea, but not just any idea. Are you fascinated What are the leaders in your category saying ever-expanding audience. Without a clearly with runway looks and want to bring them to and doing? What’s the latest innovation or hot defined point of difference, your new beauty women everywhere? Well, you’d better have new ingredient? How are brands interacting business will never make the splash it needs to a bigger idea than that because too many with their consumers online? What claims and capture market share and to keep it. established brands already own that space. results is your competition promising and can Let your ingenuity and entrepreneurial spirit you match or exceed them? help guide this step: What’s new, unique or Getting a handle on this vast pool of Step #4: De-code Your DNA passionate about your plan? Why will women, information may seem daunting or even To know your business’s point of difference is and maybe even men, everywhere love and impossible, but by starting with a clear and to capture the very essence and DNA of your have to have it? Why should a consumer pay focused idea, you will be able to target exactly company. If you stand for technologically 24 Marketing Matters GCI May 2011
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  advanced beauty, thenown that category and While creating these branding documents, own it like no other brand taking up shelf remember the other steps of the process: space at Sephora or Ulta. Tailor all messaging, your audience and your market; your point product development and packaging to of difference, and your DNA are key elements reflect this aesthetic so that when consumers in the creation of brand name, tagline, see anything connected to your brand, they positioning statements and brand stories. Ask instantly know it is you. Importantly, once you yourself, “What does my brand stand for? establish your point of difference and enter What does the name and tagline say both the market, you must maintain it. about my brand and to the consumer? How Establish and leverage your point of will my final product fit into the marketplace difference to foster a positive association and will it have the personality and pizzazz with this difference and your brand. A great it must in order to capture both interest and example is Bare Escentuals’ “Swirl, Tap, loyalty?” Are product and brand development Buff ” point of difference. It could not be efforts synergistic or are they at odds? Keep co-opted because it is so well established the innovation flowing and your brand that consumers will think of Bare Escentuals will always be relevant, viable and, more regardless of another company using a similar importantly, fresh in consumers’ minds. point of difference. Also, there exists the very real potential that you will lose consumers if you are not So, What Else Should a Start-up true and continually change what you stand Beauty Entrepreneur Do? for in-market. The target consumers for your technologically advanced beauty brand, for Exhaustive due diligence. Before one dollar example, will likely not find or connect to your is spent on packaging, marketing or social brand if you don’t fully establish or veer from media campaigns, thoroughly vet out your a technology point of difference and, instead, idea—both internally and with consumers. tout 100% green, sustainable, vegan beauty. If But not just any consumer—the loyal beauty you stray into messaging that doesn’t support brand consumer you want, and need, to dazzle. why you are different in the marketplace, and Test your business and product concepts, run why they should both believe in and be loyal to consumer focus and trial groups, and really your brand, they won’t be. listen to what they have to say before you even think about gondola space or shelf talkers. Consumer approval is the key to success Step #5: Innovate and Innovate in the beauty industry. But, for instance, with more than 158 million women living in the Some More United States, how do you know if your new The truth is, product and brand development beauty business will capture the attention don’t always happen concurrently, yet it’s and dollars of so many? Don’t miss your the most successful brands that tackle these mark—or give your market share to anyone two steps in tandem. When developing else—established brand or not. Instead, set your products, be choosy. Choose the most your business up for immediate success interesting, advanced ingredients you can by following these simple steps for proven afford; choose a lab that shares your vision launch success. n GCI and dedication; choose an SKU lineup that gives consumers both what they know and For additional information on consumer don’t know they need; and make them want testing, read Alisa Marie Beyer’s “Testing, it all. Choose products that stand high above Testing ... 1, 2, 3” contribution in the the competition, and bring your A-game. March 2011 print edition of GCI or online at These days, new brands are flooding the www.GCImagazine.com. market and consumers have more choices than ever before, which means you’ve got to ALISA MArIE BEYEr is the founder enter the fray with the best you’ve got in order and creative director of The Benchmarking to even be granted the chance to introduce Company (TBC), a global beauty consulting your next great idea to the market. firm offering business, strategy, consumer At the same time, while you are busy with intelligence and branding. Serving its clients at every stage of development (from startups all of this innovative development, begin to 13 of the top 15 global beauty companies), TBC intimately creating the fun, strategic brand identity understand the industry, the consumer and the market, and materials you will need to fit the emerging becomes an integral part of each client or project team. personality of your products. E-mail: alisa@benchmarkingco.com; www.benchmarkingco.com www.GCImagazine.com Marketing Matters 25