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CH17:Advertising and Public Relations

When it comes to advertising, Kiehl's, whose philosophy of not spending money on advertising or packaging has endured throughout its existence, sticks to that policy even as a part of multinational L'Oreal.

Kiehl's believes in developing positive image of itself on its customers through word-of-mouth strategy and building emotional connection with its customers. The company's core values, which includes 100 percent money-back guarantee, a staffing level that is two time the industry average and free consultations, has been key to establishing its relationship with customers. Also, I think that the generous samples of its hair and skin care products it gives out to customers to try before they actually make a purchase is a kind of low-key, low-pressure image it exchanges for a slick of advertising.

Kiehl's has a good press relation to major magazines of different styles, from fitness, living style to fashion magazines. This is one of the methods Kiehl's applied for its new-product publicity.

CH15: Retailing

Cosmetic products are processed material. After Kiehl's was sold to L'Oreal in 2000, the company expanded its 1 flagship store at Manhattan to more than 30 stores cross the world. 

Marketing strategy

Sampling 

Kiehl’s uses a “grab-what-you-want” approach when it displays the products on the counter, while its competitors keep their products under glass until a salesperson arrives. Committing to its “try before you buy” approach in marketing its products, Kiehl’s gives out a lot of free samples to potential customers. This helps to signal the quality of their products, as well as convey the strong confidence in the effectiveness of its skin care, body care and hair care product ranges. Sampling makes up around 60% of Kiehl's marketing budget.

Road show

Kiehl's organizes a plethora of road shows and events to raise awareness for their brand. In some countries where the Kiehl's brand is already widely known, road shows and events help to increase the awareness to trial ratio amongst skin care users and also to increase consumers' brand preference for Kiehl's.

Kiehl's uses innovative themes for its road shows and events in order to stand out from its competitors, and slowly edge its brand into consumers' top-of-mind recall.

CH6: Consumer Decision Making

Need recognition
Due to Kiehl's relatively low brand awareness and advertisement, consumers basically recognize it by external stimulus, a friend's experience and review on its products. This is known as its famous word-by-mouth endorsement.

It is necessary for consumers to perceive Kiehl's as a skincare brand that invest heavily in research and development and constantly comes out with new product innovations that are beneficial and effective, and improvement on existing products with enhanced results. In order to stand out from other competitors from a consumer's evoked set, Kiehl's develops its exemplary customer service, retail brand experience and general sampling program. Kiehl's does not hire make-up experts, rather, they prefer to hire a diverse range of people like artists and athletes, all of whom are naturally engaging and have an aptitude to learn and teach about cosmetics. Their sales people, called "retail partners", are professional beauty consultants who had undergone intensive training that drills them in the chemistry, use and application of Kiehl's products.

The main bases of Kiehl's customers are young crowds from mid-20s to mid-30s. In spite of its stable women section, male consumers are steadily increasing. Most of them are working classes.

CH5:Developing a Global Vision.

Even though Kiehl's products are available to customers internationally, it's a born and bred New Yorker. When it comes to globalization, Kiehl's still stays with its own promotion culture which is word-of-mouth awareness building, generous sampling and extrodinary customer service. Before Kiehl's come up its chain to a new country, it complete a concise consumer research. Only if the customers already knew some basic facts about Kiehl's, such as its origin in New York and its reliance on natural ingredients, did Kiehl's establish its new chain at that country.

//After sold to L' Oreal, Kiehl's has expanded its retailing stores into 37 countries. 

CH4: The Marketing Environment

Kiehl's parent L'oreal has emerged stronger in 2011. The market is dramatically driven by developing countries such as China, India and Brazil; Likewise, Kiehl's has recorded a sustained growth, it outperformed the skin care market four times. In 2012, Kiehl's will open 15 more stores across the UK. 

Competitive factors

As a first pharmacy producing skin care products that use the most unique natural ingredients, Kiehl's developed a series of favorable products and possessed an outstanding pharmaceutical background. After the overwhelming sale of Rosa Arctica, a youth regenerating cream, it developed two additional products using rare "Resurrection Flower" from the lab. One is for the eye areas, and the other is for normal and oily skin. 

CH:3 Ethic and Social Responsibility.

Kiehl's is focused on three primary philanthropic causes: AIDS research and prevention, children's well-being and environment.

Kiehl's recycling program, Recycle and Be Rewarded which launched in 2009, allow customer bring the empty bottles, tubes and jars of beauty products in exchange for free products.

In certain stores, Kiehl's has placed recycling bin in order to recycle those empty bottles. 

CH2: Strategy Planning for competitive advantage

Objective of Kiehl's Since 1851

More than 40 years ago, Aaron Morse wrote "the Mission of Kiehl's", which committed the company to the objective of "making for better citizens, better firms, and better communities." Today, it is focused on three primary philanthropic causes: AIDS research and prevention, children's well-being and environment.

Targeted market

Male customers is a huge portion of Kiehl's customer base, which represent 30 to 40 percent. Both my roomates and I have been using Kiehl's daily grooming products for more than a year. Allan Motuus, the editor of the cosmetic industry The Informationist, stated, "The kiehl's store always attracted a cutting-edge younger-crowed."(Alex Withcel, COUNTERINTELLIGENCE; New Owners Let Kiehl's Be Kiehl's)

The Marketing Mix 

• Product Strategies  Compared to its competitor, Kiehl's states that it spends three to five more times on its upscale natural cosmetic products. It is also prominent on its charity events, creating an image of philanthropy for its company and products. In august 2010, Kiehl's launched its inaugural "Kiehl's Liferide for amfAR"(The Foundation for AIDS Research).
• Place strategies Kiehl's established online store and a numerous bunches of local stores throughout the world. For consumers those preferring online shopping, it chooses the customer favorites and new coming products. On a local store level, Kiehl's works to understand each new location and develop a unique approach for that market.
• Promotion Strategies Kiehl's applies a non-traditional marketing approach that "relies heavily on free product samples, word of mouth endorsements from existing customers, and innovative marketing techniques."(Deirdre Sullivan, Kiehl's executive reveals secrets of guerrilla marketing to fashion club)
• Price Most of Kiehl's products remain at a middle range of price, but its generous sampling policy is much more appealing than that. From my own shopping experience, I got 5 samples of small packages after I made a purchase of 2 products, a body scrub and an after-scrub lotion. I could choose whichever the samples they were offering.

CH1:History and Mission Statement

History

Kiehl's is an American cosmetics brand retailer that specializes in making premium skin, hair, and body care products. Founded as a single pharmacy in New York City's East Village in 1851, Kiehl's was purchased by the L'Oréal Group in 2000 and currently has more than 30 retail stores worldwide, supplemented by sales in high-end department stores.

Mission Statement

"A worthwhile firm must have a purpose for its existence. Not only the everyday work-a-day purpose to earn a just profit, but beyond that, to improve in some way the quality of the community to which it is committed. Each firm－as should each person－contributes to those around it; and by dint of its day-to-day efforts, the message it thereby imparts is a revelation of the quality standard at which its life's work is conducted.

we here at Kiehl's hope that through the quality of our products, by the manner in which our day-to-day contacts are concerned with truth, justice, and fairness, we can in some way communicate to those who may not have been aware of it that these qualities are eternal and renewable every day, making for better citizens, better firms, and better communities."

From "The Mission of Kiehl's Since 1851" declared thirty years ago.