You are on page 1of 35

NEALS YARD REMEDIES

CS2058 Integrated Marketing Communications


14 November 2016

1
Contents

Executive Summary . 3

Brand Challenge & Big Idea ... 4

Situation, Competition & Market Analysis 5 to 7

Campaign Strategy ..... 8 to 10

Execution (Tactics) ... 11 to 13

Media Plan . 14 to 17

References & Appendices .... 18 to 35

2
Established in 1981, Neals Yard Remedies (hereafter NYR) is one of the pioneer brands

pushing against the use of synthetic ingredients that may be harsh on skins in personal care

products. Known as the Best of British hailing from Londons Covent Garden, NYRs brand

establishment is very different in Singapore. With only two outletsMillenia Walk and Isetan

Katong, NYR is a relatively new brand in the local market receiving small-scale revenues as

compared to those of the UK stores. It ventured into Singapore just two years back, in 2014. Its

key brand challenge of low brand awareness predominantly leads back to how uninformed

consumers are about natural products not necessarily being organic. We hence seek to

employ a two-phased campaign over six months to educate our higher income target market of

women aged 25 to 50 on the difference between natural and organic. At the same time, we

wish to bring NYR forward as the truly organic remedy to healthy beauty, revealing its Truth in

a Bottle as the pioneer of organically-certified skincare brands in Singapore. The goals of our

campaign are 1) to increase the awareness of NYR among our target from 2.5% to 30% and 2) to

increase preference for NYR from 2.5% to 20%. We will carry out marketing strategies with our

main tactics of traditional media, digital and outdoor advertisingi.e. Magazine print ads, Social

media activities and Pop-up store alongside our celebrity endorser Ms Eunice Olsen. In doing so,

we wish to gain NYR long-term recognitions and subsequently increase its overall sales revenue.

3
Brand Challenge & Big Idea

With an expected growth in the global market for organic personal care products in the next five

years (Pitman, 2013), it is important for us to look into the main concern in this industrythe

advertising of natural and organic brands. Advertising regulations are often free from

governmental reviews, hence many products advertised as natural and organic can in fact

contain many types of synthetic chemicals and preservatives, with figures showing 35% of

natural products for children containing artificial preservatives (Rano, 2012). Having this

concern in line with the situation among Singaporeans (see Appendix A for survey responses),

we feel that the major brand challenge deterring NYRs brand establishment in Singapore is thus,

the lack of awareness on the difference between natural and organic.

Being a certified organic brand, NYR evidently has the potential to stand out with its

transparency in organically-grown ingredients which amplifies itself as an ideally safe brand. As

organic refers to healthy crops and ingredients produced through a system of farming, it can

only cover agricultural produce; that means natural ingredients such as water, clay, minerals

and salt are not exactly suitable to be named as organic (Clare, n.d.). Our Big Idea is therefore

to bring forward the organic-only philosophy of NYR as the answer to healthy beauty, and

to educate women in our target market on the difference between natural and organic.

In carrying out our campaign with the proposal presented in the following sections of this report,

we will base our efforts on the tagline: Truth in a Bottle (refer to Appendix B). It reiterates

NYRs transparency in displaying products sources and it significantly utilizes NYRs

trademark blue bottle as a unique and ethical symbol, all in all underscoring its truthful remedies.

4
Situation, Competition & Market Analysis

Drawing from the survey responses (see Appendix A), 97% of respondents have not heard of

NYR. This could be mainly due to NYRs weak integrated marketing efforts.

Current Marketing Efforts

On top of a Facebook page with 2295 likes1, NYR has an Instagram account with 217 posts1 and

674 followers1 . Information is posted on an average of 3-day intervals, having about 30 likes for

each post. NYR also has a website2 linked to the one in the United Kingdom (UK)showcasing

its product range, an outdated testimonial page, and a promotional site ironically displaying very

few promotions. Self promotions aside, NYR had been featured in press releases in recent years.

Journalist Gladys Chung introduced NYR as the newest British brand to enter Singapore's

skincare market (2014), carrying quality organic products. In Harpers Bazaar, NYR was

awarded as the Best Organic Moisturizer (2015) and primarily featured in the magazines 15th

Anniversary Giveaways (2016). Even so, NYR had only been starred once a year since its local

store opening. The limited outreach reiterates the little awareness of this truly organic brand.

Target Audience

Demographically, we are targeting educated women aged 25 to 50 years old with an above

average income. As NYR has a higher price point, women with sufficient disposable income is

our main target audience. Psychographically, these women are beauty conscious but unaware of

the difference between natural and organic. Behaviour-wise, they ideally place concerns

over the environment and seek ethical means in manufacturing (in line with NYRs values).

1
As of 1st November 2016
2
http://nealsyardremedies.com.sg/
5
SWOT Analysis

Using the SWOT analysis3, internal and external factors affecting NYRs business environment

are reviewed. Despite having threats from cheaper natural alternatives, there is a market

opportunity for NYR with the emergence of health- and environmentally-conscious consumers

looking for optimally safe and organic products. Albeit being new locally, NYR has a potential

to stand out with its wide range of products that coincide with its ethical and cruelty-free values.

Competitors Analysis

The chosen competitors are Kiehls and Simple Skincare. Kiehls is an American skincare and

cosmetic brand that ventured into Singapores market in 2004. Currently, they have 13 outlets

island wide. Simple, originating from the UK, have products readily available in supermarkets

and personal care stores (Chung, 2014). Both Kiehls and Simple are non-organic. They contain

synthetic ingredients but are branded as natural, in hope of attracting customers. For instance,

Kiehls Avocado Eye Cream contains highly skin-irritating phenoxyethanol and other parabens

which are cancerous chemicals (Green Beauty Team, 2015). Simples products contain parabens

too, and the brand misleads consumers by stating selective ingredient glossaries (Michele, 2012).

For social media presence4, Kiehls is the most prominent, followed by Simplewhich was

presumably the least prestigious amongst the three, then NYR. Offline, NYR offers occasional

gift vouchers and Singapore Airlines (SIA) privileges where purchases of any 2 items are entitled

a Skincare Kit worth S$48. Kiehls promotional strategies seem more appealing with discounts,

free samples, and an incorporation of special contests such as the recent Ticket to Kiehls

3
See Appendix C for an elaborated SWOT analysis
4
See Appendix D for tabulated details
6
Wonderland, where customers could win a years worth of its products and a complimentary

staycation. Two brand variablesPrice and Nature of Productsare used to illustrate where

NYR stands with the other two. Kiehls and NYR are high-priced whilst Simple is low-priced.

Kiehls and Simple claim themselves as natural; NYR is undoubtedly categorized as organic5.

As our main concern is to address the uninformed target audience about the difference between

natural and organic, we chose Kiehls and Simple as our competitors to highlight how such

natural brands with high awareness are very probably well-disguised as organic to

consumers, alongside perceivable efforts in keeping their products synthetic contents unnoticed.

To tackle directly at the misconception of the two important skincare terms, the competitors

(Kiehls and Simple) represent natural brands carrying products which as a matter of fact

consist of synthetic compositions. This deliberate choice of competitors will not only enlighten

the target audiencewho continually patronise higher or lower ends of natural brandsabout

the truth behind natural and organic, it will also help to elevate NYR as an honest, ethical

and outstanding brand that offers high quality and organic-only products for healthy beauty.

Positioning Statement

For women aged 25 to 50 with above average income who want better and healthier beauty

products, Neals Yard Remedies is a top skincare brand originating in the UK that is truly

organic. Unlike Kiehls and Simple that are synthetic but mainly focuses on its use of natural

ingredients, NYRs products pass more rigorous standards of regulation and we are the first to be

certified organic.

5
See Appendix E for the Perceptual Map
7
Campaign Strategy

Framing after the advertising model of Definable Advertising Goals for Measured Advertising

Results (DAGMAR) and having our objectives set based on the Zero-based communications

planning model, our diphasic marketing campaign will be held over a period of six months, from

January to June 2017. Phase 1 will focus on (1) raising awareness of the brand among our target

audience and more importantly, (2) increasing comprehension of our position as a brand that

promotes an organic-only philosophy. We firstly aim to increase consumers in our target market

who are aware of NYR as an organically-certified brand from 2.5% to 30% over the course of six

months. Phase 2 will then focus on strengthening the conviction for our brand in our target

audience. Our second aim is to increase the percentage of our target consumers preferring our

brand to competitors in the market from 2.5% to 20% over the course of six months.

Phase 1: Raising Awareness and Increasing Comprehension

1. Celebrity Endorsement: We seek to get Ms Eunice Olsen to be the face of our campaign.

Being a former Miss Singapore in 2000, we believe that Ms Olsen will be seen as someone with

the relevant knowledge in skincare products. Since she is likely to be seen as a credible source by

our target audience, there is a high likelihood of internalising our campaigns message. She also

provides a familiar and likable face to our target audience, being a former nominated member of

the parliament from 2004 to 2006. By having a Singaporean to endorse our brand, we believe

that Ms Olsen will be perceived as attractive to our target market. More importantly, we hope

that audience liking for her will be carried over to our brand through the meaning transfer model.

8
2. Pop-up Store: We intend to set up a two-week pop-up store at Raffles Place, which is situated

in the Central Business District (CBD). A pop-up store is a store that operates for a short period

of time at a temporary location. According to research done by the The Lionesque Group

(Gonzalez, 2014), pop-ups can provide multiple benefits for brands. Firstly, they increase the

awareness of our brand among the public and also increase our social media presence. Gonzalez

(2014) stated that more than half of brands will experience an average of 30% increase in social

media engagement. Secondly, pop-up stores are great platforms to educate the public about our

brands value proposition and our offerings. Thirdly, sales of events can also be increased by an

average of 35%, from the start of the pop-up to six months after the event (Gonzalez, 2014).

3. AdvertisementsPrint and Digital: We will produce advertisements that have a combination

of rational and emotional appeals which are to be executed through strong imagery. Since NYR

is a high-end organic skincare brand, our ads seek to deepen the association between our brand

and the idea of excellence and luxury among our target market. For traditional advertising, we

will publish print advertisements (see Appendix F) in Her World magazine on a monthly basis

for six months. We also wish to take advantage of the high receptivity of magazines, which is a

high involvement media. In addition, we are hoping to associate our brand with the prestige of

the womens magazine. For non-traditional advertising, we will concentrate our efforts on

Facebook ads (see Appendix G) that will be displayed on the newsfeed of our target audience.

According to research done by Hashmeta, a local marketing agency, one in every two

Singaporeans uses social media to make purchase decisions (Social Media Singapore, 2015).

Facebook ads also offer performance metrics for us to easily track the effectiveness of the ads.

9
4. Beauty Subscription Box: Beauty subscription boxes are monthly subscription services where

consumers can try eight to ten products that are curated and sent to them. Subscription boxes can

provide these following benefits for our brand: (1) It is easier for our brand to break through the

clutter as such a form of advertising is less competitive as compared to other forms of media, (2)

Sampling provides consumers with a low-risk and low-cost method of trying our products, and

(3) Beauty Box subscribers are usually more receptive towards new products (Greenwald, 2014).

Phase 2: Strengthening Brand Conviction

1. Shhh Share the Secret: This is a friend referral strategy (see Appendix H for poster),

where existing members will be our ambassadors and help to promote our brand through

word-of-mouth advertising. According to the advertising report from Nielsen Global Trust

(2015), referral marketing remains as the most credible form of advertising among consumers.

83% of global surveyors trust the recommendation of friends and family and are also more

likely to take action on these opinions at least some of the time (Nielsen Global Trust in

Advertising Report, 2015).

2. Social Media Contests: We intend to hold contests and giveaways on our Facebook and

Instagram pages to expand our existing customer base (see Appendix I for an example). This is

also a great way to boost our social media engagement levels, as 35% of Facebook fans liked

Facebook pages in 2015 in order to compete and stand a chance to win in social media contests

(Cooper, 2013). Additionally, the contests can also increase interaction between our brand and

our existing members, which favourably strengthens and sustains customer loyalty.

10
Execution (Tactics)

With the strategies established, our campaign will capitalize on the various advertising outlets

mentioned to carry out a tactical mix (i.e. outdoor, traditional print and digital) in achieving our

twofold communication objectives: (1) to reach out to more consumers in our target market

segment who have not heard of our brand, as well as (2) to continually engage our existing

customer base with less mundane interactions.

Outdoor Advertising Tactics

In our case of outdoor advertising, the pop-up store serves predominantly as a means to heighten

brand awareness and to spark interests in NYR and its organic products. In the first phase of our

campaign, we will prioritize this event happening at our pop-up store in the CBD at Raffles Place

to reach a higher percentage of our target market who are mainly working professionals. An

outdoor booth will be set up just within steps from the store, and we will invite Ms Eunice Olsen

to be the ambassador and emcee of our event. Ms Olsen will speak about issues in the organic

skincare industry (such as the processes that a brand has to go through to be certified organic),

educate the audience on the main differences between organic and natural products, and

promote NYR as the safe alternative to natural products, with the established image of a truly

organic brand that offers a variety of personal and skincare productsone of the few of its kinds

in Singapore which has accumulated quite a huge following in the UK. Using outdoor

advertising, we want to reach to the target market directly (pop-up store) and more selectively

(Raffles Place), encouraging them to follow us subsequently on our social media platforms to

receive continual updates on NYR.

11
Traditional Print Advertising Tactics

To exploit the tactics for this segment, we will focus on producing print ads for Her World

magazine. In line with our Big Idea of educating consumers on the difference between organic

and natural, our print ads will be coupled with links to our website and social media pages,

featuring the copy Truth in a Bottle to emphasize NYR as a brand that does not comprise

synthetic contents which include genetically modified ingredients or fertilizers. The print ads

will be placed on the right-hand page, as readers usually scan the page from left to right,

lingering on the bottom right of the page (Ashe-Edmunds, 2010). The ads will also be invested in

the beauty section for contextual relevancy, as studies have shown that customers have higher

recall of ads with products positioned within directly-relatable content (Norris & Colman, 1992).

Digital Advertising Tactics

On top of plainly maintaining and keeping the current NYR website updated, our proposed

strategies mainly leverage on digital advertising throughout the campaign in terms of social

media (Facebook and Instagram), as it is flexible and cost-effective in achieving our mentioned

communication objectives. To raise brand awareness in Phase 1, social media tactics offer high

selectivity as ads can be chosen to target an audience of specific demographics and

psychographics. With Facebook profile information such as age, education, interests (e.g.

favorite movies and music) made available for advertisers, ads on Facebook can utilize the

readily-built target filter to select specific groups of people whom advertisers want to expose a

particular ad to. This function makes it possible for us to target people who are most likely to be

already interested in healthy skincare or beauty products, amongst the 48.3% of females between

the ages of 15 to 55 in Singapore who use Facebook (Facebook, n.d.).

12
The frequency of our posts will be two times per day on Facebook and 1.5 times or more per day

on Instagram before the likes and comments start to drop off (Lee, 2015). When consumers

especially from our target market use social media in the morning and evening during their to

and fro traverse, we want to push out our print ads with an additional copy containing our

campaign tagline Truth in a Bottle as well as highlights of our upcoming pop-up store event.

Besides building brand awareness, we will extend the use of Facebook and Instagram in Phase 2

to build brand loyalty by encouraging customer interactions through fun contests and giveaways

that will be posted weekly on our social media pages. The goal that we want to achieve from this

is to place NYR in our customers evoked set when deciding on which skincare brand to

purchase from. This will also be a chance for us to make our brand as one that is more personal

and relatable. Our weekly customer interactions will assure our target consumers with regular

engagements, as well as rewards of promotional codes on occasions. For the weekly Facebook

contest, a central theme will revolve around the advocation of truth by our NYR team. These

weekly contests will showcase NYR products with their prices attached, having our Two truths

and one lie game prompting participants to identify the false statement about the product

presented and state why they prefer organic brands over other natural and synthetic brands.

We also want to leverage on the Shhh Share the Secret referral scheme (see Appendix H) to

expand our existing customer base with a complimentary facial session for every new

membership sign-up. Information about this referral scheme will be spread throughout the

campaign by our boosted Facebook ads which will be put in place to more conveniently reach

customers and inform our existing members about these updates on such membership benefits.

13
Media Plan

A bottom-up budgeting approach has been chosen to focus on producing an overall budget that is

tailored according to our communication objectives to effectively achieve our intentions, as

opposed to a top-down approach that can limit advertising strategies due to financial constraints.

As mentioned initially, we will be splitting our six-month campaign into two different phases.

Phase 1 concentrates on increasing reach, as our brand is still relatively new in the Singapore

market and requires greater awareness; whilst Phase 2 concentrates on increasing frequency

instead, having already established an audience. We will be using a pulsing method that steps up

our advertising efforts during holidays and mass sale periods like the New Year or Great

Singapore Sale (GSS). This helps with the cost efficiency of advertising during purchase cycles

and serves as a constant reminder to consumers, entrenching NYRs name among the women in

our target market who are unfamiliar with our brand. The following media plan will justify our

media mix in terms of reach, selectivity, cost per thousand (CPM) and the associated budget

according to each of the strategies.

The first phase consists of using the pop-up store to generate awareness of our brand. Held at

Raffles Place, with an average daily passenger traffic count of about 8,900 people (URA, 2016),

the pop-up store aims to have a target reach of 5,000 people daily. Also, as Raffles Place is the

CBD of Singapore surrounded by international companies and banks, the location favourably

allows us to get our message across to our main target audience - office ladies.

14
Having calculated the costs involved in our outdoor event, it amounts to about S$30,420 in total.

Table 1 (see Appendix J for all budgeting tables mentioned) shows a breakdown of the budget

cost associated with the pop-up store as per our calculations, following the rates stated for event

management (ABAHE, 2016; Hard, 2016) and rental of a pop-up store (Pop Up Angels, 2016).

We will be using a flat-fee structure that involves paying an upfront fee for the following

services: rental/transportation of logistics, on-site event management, registration materials, and

publicity collateralse.g. banner, media print-outs, etc. (Entrepreneur, 2016).

At the same time, our first phase involves advertising in print media as part of our media mix due

to their high selectivity. Her World magazine has the highest readership amongst our target

market, with 52% of its readers being PMEBs (Professionals, Managers, Executives and

Businessmen) aged 25 to 50 (Singapore Press Holdings, 2016). This selectivity of magazines

allows us to achieve higher partial target market coverage versus media such as the television

and the radio which have faced increased audience fragmentation today (Media Post, 2012).

Having chosen to slot in our efforts at intervals of six print ads over the months in Her World

magazine, the cost will amount to about S$25,018.20 in total. Using CPM to denote the price per

thousand advertisement impressions, Her World hosts the cheapest CPM of $36.19 (see Table 2

in Appendix J for the comparison across the different women-targeted magazines). Thus, we

have chosen Her World as our primary advertising outlet for print ads in support of its

affordability. This choice of media mix allows us to complement the outreach approach as we

can increase the frequency of advertisements here.

15
Another segment of Phase 1 is using digital media as part of the media mix, namely Facebook

and Instagram. The rationale behind choosing these two social media platforms is the evident

claim of having 46.2% of consumers shown to use social media for research on product reviews

and experiences, supporting how social media have strong credibility as platforms for consumers

to obtain product information (Hashmeta, 2015). Furthermore, Facebook is the top social media

network in Singapore with more than 2.8 million registered users (Singapore Business Review,

2012). Of this huge reach, about 680,000 users are females aged 25-55 (Digital Influence Lab,

2015). Our target reach on Facebook is therefore 50,000 of these users and 15,000 likes on our

Facebook page, as industry standards show that page engagement is 29% of Facebook page

reach (Guglielmelli, 2014). On Instagram, there are 1.4 million registered users in Singapore

(Hashmeta, 2015), and 68% of these Instagram users are female (Business Insider Singapore,

2016). Our target reach on Instagram is thus 25,000 followers, with each post aiming to have

1.9% engagement rate as per beauty industry standards (Mediakix, 2016), i.e. 475 likes/post.

Facebook advertisements in the first phase will help us to achieve selectivity of audience as these

ads can be tailored to screen according to psychographic and demographic preferences like

location and likes (Facebook, n.d.). In our case, we are looking to select our target females aged

25 to 50 who are health conscious. Facebook advertisements also help to achieve high reach as

these ads are posted on any publics Facebook feed who fit with the criteria (Facebook, n.d.),

allowing us to reach out to the general public as well. The estimated reach is 5,400 to 14,000

people daily, guaranteeing a minimum reach of 50,000 users across our two-week boost.

Although duplicated reach may be attained, it is still within acceptability as we are entrenching

16
our relatively new brand in the mindsets of our target consumers who are not familiar with NYR.

Our Facebook boosted posts will in turn reach out to our established audience, the followers on

our page, and their friends and social networks (Facebook, n.d.). Using boosted posts also allow

us to tap on word-of-mouth marketing, with the support of 92% of consumers being more

receptive towards recommendations from family and friends over all forms of advertising

(Nielsen, 2012). Each post costs S$280 as it runs for 7 days consecutively. W
ith a sum of

S$4,780 as the total cost for our Facebook advertising activities, Table 3 in Appendix J shows

the cost breakdown for the various features of social media that we will use.

Amounting to about S$8,781.25 in total, Table 4 (see Appendix J) shows the cost breakdown of

our campaigns last feature, Shhh Share the Secret. This step leverages on direct-response

advertising (DRA) that has high audience selectivity (Dip, 2014), targeting the niche market on

our membership list only. Furthermore, as DRA can be tracked, we can find out the particular

advertising ideas that consumers respond to and thereafter improve our efficiency. To sum up, as

shown in Table 5 (see Appendix J), all costs for the various components of our campaign will

amount to about S$78,999.45 in total.

With these in mind, we hope that our proposed campaign will cost-effectively convey our

intended message to address our main brand challenge. At the same time, we wish to bring out

the best of NYR to the consumers attending to our marketing efforts. In increasing an overall

brand awareness, this campaign seeks to amplify the brands organic-philosophy and elevate

Neals Yard Remedies onto a higher platform for long-term gains in Singapores market.

17
References

ABAHE: Arab British Academy for Higher Education. (n.d.). Hourly fee and flat fee. Retrieved
November 10, 2016, from
http://www.abahe.co.uk/b/Event-Planner/Starting-Your-Own-Business/Financial-Matters
/Hourly-fee-and-flat-fee.pdf
Ashe-Edmunds, S. (2010). The Importance of Premium Positioning in Print Advertising.
Retrieved November 12, 2016, from
http://yourbusiness.azcentral.com/importance-premium-positioning-print-advertising-136
89.html
Clare, A. (n.d.). Neals Yard Remedies. Retrieved November 10, 2016, from
http://www.nealsyardremedies.com/about-us-pages/our-products/why-choose-organic.ht
ml
Cooper, B. B. (2013, February 12). 7 Powerful Facebook Statistics You Should Know About.
Retrieved November 11, 2016, from
https://www.fastcompany.com/3022301/work-smart/7-powerful-facebook-statistics-you-s
hould-know-about
Dib, A. (2014). What Is Direct Response Marketing? - Successwise. Retrieved November 11,
2016, from http://successwise.com/what-is-direct-response-marketing
Facebook. (n.d.). Facebook Ad Basics. Retrieved November 10, 2016, from
https://www.facebook.com/business/learn/facebook-ads-basics/
Gonzalez, M. (2014). The pop-up paradigm: How brands build human connections in a digital
age. Place of publication not identified: Lioncrest Publishing.
Green Beauty Team. (2015). Is Kiehl's Really Natural Or Are they Greenwashing? Retrieved
November 12, 2016, from
http://greenbeautyteam.com/features/is-kiehls-really-natural-or-are-they-greenwashing/
Greenwald, M. (2014, October 22). Why Subscription Sample Boxes Are So Effective.
Retrieved November 10, 2016, from
http://www.forbes.com/sites/michellegreenwald/2014/10/22/why-subscription-sample-bo
xes-are-so-effective/#4a92e274b401
Guglielmelli, C. (2014). Finding The Right Engagement Rate for your Facebook Page in 2014.
Retrieved November 10, 2016, from
https://www.socialbakers.com/blog/2137-finding-the-right-engagement-rate-for-your-fac
ebook-page-in-2014
Hard, R. (2016, October 19). How Do Event Planners Structure Their Fees? Retrieved November
10, 2016, from
https://www.thebalance.com/how-do-event-planners-structure-their-fees-1223572

18
Harper's Bazaar Singapore. (2015, November 02). Beauty Awards 2015 Best Organic
Moisturiser: Neal's Yard Remedies Frankincense Intense. Retrieved November 12, 2016,
from
http://www.harpersbazaar.com.sg/17854/beauty-awards-2015-best-organic-moisturiser-n
eals-yard-remedies-frankincense-intense/
Harper's Bazaar Singapore. (2016, October 10). BAZAAR's 15th Anniversary Giveaways Week
9: Neal's Yard Remedies Set. Retrieved November 12, 2016, from
http://www.harpersbazaar.com.sg/57207/bazaar-15th-anniversary-giveaways-week-9-nea
ls-yard-remedies-set/
Mediakix. (2016, June 21). Does your engagement rate match up to Instagram's best brands?
Retrieved November 12, 2016, from
http://mediakix.com/2016/06/best-brands-instagram-engagement-rates-case-study/#gs.loQZ
WAY
Michele. (2012, March 29). "Simple" Skincare? Not Exactly... Retrieved November 12, 2016,
from http://michelesquest.blogspot.sg/2012/03/simple-skincare-not-exactly.html
Nielsen Global Trust in Advertising Report. (2015, September). Retrieved November 12, 2016,
from
https://www.nielsen.com/content/dam/nielsenglobal/apac/docs/reports/2015/nielsen-glob
al-trust-in-advertising-report-september-2015.pdf
Nielsen. (2012, October 02). Consumer Trust in Online, Social and Mobile Advertising Grows.
Retrieved November 12, 2016, from
http://www.nielsen.com/us/en/insights/news/2012/consumer-trust-in-online-social-and-m
obile-advertising-grows.html
Norris, C. E., & Colman, A. M. (1992). Context Effects on Recall and Recognition of Magazine
Advertisements. Journal of Advertising, 21(3), 37-46. Retrieved November 12, 2016.
Pitman, S. (2013, July 09). Global market for organic personal care expected to continue rapid
growth. Retrieved November 10, 2016, from
http://www.cosmeticsdesign.com/Market-Trends/Global-market-for-organic-personal-car
e-expected-to-continue-rapid-growth
Pop Up Angels. (n.d.). High traffic street level event space in Raffles Place - Find and rent pop
up space in Singapore. Retrieved November 10, 2016, from
http://www.popupangels.sg/property/high-traffic-street-level-event-space-in-raffles-place
/
Rano, J. (2012, March 23). Myths on cosmetics safety | Skin Deep Cosmetics Database | EWG.
Retrieved November 10, 2016, from
http://www.ewg.org/skindeep/myths-on-cosmetics-safety/
Social Media Singapore [Infographic]. (2015). Retrieved November 10, 2016, from
http://www.hashmeta.com/social-media-singapore-infographic/
URA. (2016). The Singapore Advantage. Retrieved November 10, 2016, from
https://www.ura.gov.sg/sales/ndt26jun01/ndt26jun01details4.html

19
Appendices

Appendix A: Survey Responses

Q1. Please rank from 1 (most important) to 5 (least important) the following based on what you

consider when buying skincare products.

Q2. Have you heard of Neals Yard Remedies?

20
Q3. How did you hear about Neals Yard Remedies? (If Yes is selected for Q2.)

Q4. Do you prefer Neals Yard Remedies to other skincare brands in Singapore?

21
Q5. Would you consider purchasing a product from Neals Yard Remedies? Why?

22
Q6. Do you subscribe to Beauty Boxes (e.g. styleXstyles The Little Black Beauty Box)?

23
Appendix B: Truth in a Bottle Campaign Posters

24
Appendix C: Detailed SWOT Analysis

Strengths Weaknesses

` Wide range of products in organic product line ` Products are relatively costlier compared to

` First UK Organic beauty brand to venture into other beauty products brands

Singapore Market ` Weak integrated marketing communication

` Products are safe to use (IMC) strategies

` Taking ethics into consideration ` Low awareness about the brand

Opportunities Threats

` Health conscious consumers emerge and they are ` Consumers do not know how to differentiate

looking for brand that optimize their health status between Organic and Natural

and well being ` Availability of cheaper products from other

` Certified by various credible associations brands in the market

Strengths: NYR has a wide range of products for different skin types, bath (soap and hair care),

body (hand care, foot care, oral care, deodorant massage oil, etc), aromatherapy (remedies and

essential oils), etc. NYR also caters to both genders, standing out as a multipurpose and versatile

brand. NYR is the pioneer UK brand that ventured into Singapores beauty product market. UK

skincare products are perceived as prestigious, let alone NYR, which offers purely organic

products. Stringent quality checks are conducted during the manufacturing process and thus, only

the best quality organic ingredients are used. The ingredients used are free from any harmful

contents, thus ensuring better well-being of consumers. NYR also cares strongly for the planet.

Its products are manufactured in eco-factories. NYR emphasizes on importance of recycle

25
activities, their packaging is made of recycled materials. They run NYR LOVE OUR EARTH

Recycle Programme where customers can redeem gifts on stamp collection system by bringing

back empty bottles to stores. They also advocate care for animals, anti-animal testing.

Weaknesses: NYRs products are relatively costlier as compared to other personal care and

beauty brands. This is due to the high import tax (products imported from headquarters in UK)

and high cost of raw organic materials. Being a relatively new brand in Singapore, its low brand

awareness generally gets linked back to its weak integrated marketing communication (IMC)

strategies. NYR is not doing enough in coming up with interesting promotional strategies to

attract potential customers, despite having only two Singapore outlets.

Opportunities: With the emergence of health conscious consumers looking for an optimized

health status and well-being, NYR caters to their needs. Through surveys, it is evident that target

audience are willing to buy organic products free from harmful ingredients. Certified by various

credible associations, NYR carries a strong ethical image that elevates itself in the rising market.

Organizations such as Soil Association, World Land Trust and Carbon, Cruelty-Free

International and Humane Society, and many more have emphasized the brands advantages

along with its ethical considerations on society, animals and planet caring aspects.

Threats: NYR faces low brand awareness as consumers do not usually differentiate between

organic and natural. Many competitors brand themselves as natural by leveraging on

uninformed customers. Such natural products may still contain harmful chemicals such as

parabens. Customers do not see the dangers of those products because they branded themselves

as natural. Moreover, cheaper alternatives (although mostly synthetic) are available.

26
Appendix D: Summary of Competitors Analysis

Brands

Organic/ Non-organic, Synthetic Organic Non-organic, Synthetic


Non-Organic (contains parabens) (paraben-free) (contains parabens)

Price Range S$50 S$50 S$10


(Average)

Product Synthetic personal Organic health and Synthetic skincare


Range care products with beauty products products
minimal
preservatives

Social Media Facebook: Facebook: Facebook:


Presence 1,735k + likes 2k + Likes 15k + Likes
*As of 1st
Nov 2016 Instagram: Instagram: Instagram:
888 posts 217 posts 308 posts
13.4k followers 674 followers 531 followers

Promotions Gift Vouchers Gift Vouchers Vouchers


Free Samples LOVE OUR EARTH Bundle
Special Contests Recycle Programme
SIA Privileges

27
Appendix E: Perceptual Map illustrating NYRs Position

HIGH PRICE

NATURAL ORGANIC

LOW PRICE

28
Appendix F: Truth in a Bottle Print Advertisement

29
Appendix G: Facebook Ads

Appendix H: Shhh Share the Secret Poster

30
Appendix I: Social Media Contests

31
Appendix J: Budgeting Tables 1 to 5

Purpose Absolute Costs

Event Management Fee Preliminary Consultation Fee ($150-300)

Subsequent Consultation Fees ($500)

Flat Fee ($8,000)

30 pax Event Crew ($7/hour)

Pop-up store Rental Fee $2,700/day

7 days = $18,900

TOTAL COST $30,420

Table 1: Breakdown of Pop-up Store Expenditure

32
Magazine Cost Breakdown Cost Per Thousand (CPM)

HER WORLD6 $4,633/full page ad

10% discount for 6


Readership: 128,000 insertions
Selectivity: 52% are PMEBs

CLEO $4,400/full page ad

Readership: 58,000
Selectivity: 77% are PMEBs

FEMALE $4,200/full page


advertisement
Readership: 80,000

TOTAL COST/6 insertions $25,018.20


Table 2: Cost Breakdown by Cost Per Thousand (CPM) Across Magazines

6
All magazine rates obtained from Singapore Press Holdings Rate Cards.
33
Purpose DETAILS Reach COST

Facebook $50/daily 5,400 - 14,000 $700


Advertisement7 2 weeks spread out people daily

Facebook Boosted $280/boosted post 16,000 - 43,000 $3,360


Post 12 posts in total people per post

Product Giveaways $30/trial product $720


Weekly-Giveaway

TOTAL COST $4,780

Table 3: Cost Breakdown of Facebook Advertising Activities

Activity: Cost/item Cost/activity


Shhh... Share the Secret

Complimentary Facial $68/session 8 $8,500


Sessions 125 members

Printing Collaterals $1.35/card 9 $281.25


125 cards

Total Costs $8,781.25


Table 4: Cost Breakdown of Shhh Share the Secret

7
All Facebook advertising/boosted post rates obtained from NYR Singapores Facebook Advertising Manager
8
Neals Yard Remedies Facials Rate Card
9
Printing rates obtained from http://www.makeplayingcards.com/low-price-for-bulk.aspx
34
Activity Fixed Costs

Magazines $25,018.20

Digital Media $4,780

Outdoor Exhibition $30,420

Celebrity Endorsement $10,000

Shhh Share The Secret $8,781.25

TOTAL COST $78,999.45


Table 5: Total Costs According to Advertising & Marketing Tactics

35

You might also like