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.