Heatherette Cosmetics: A Marketing Report

Angel Nicholls: N0214012

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Contents Introduction 3 Methodology 3 SWOT Analysis 6 Competiror Analysis 9-10 Perceptual Map 10 Target Consumer and Profile 11-14 Focus Group sample 12-13 Marketing Mix 15-22 Production Life Cycle 16 Summary and Recommendations 23-24 References 25-26 Bibliography 27-29 Appendix 30-36

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The cosmetics market is highly competitive yet very lucrative and promises to grow in the UK alone by 30% by 2013. Brainbidge J. (2008: p.32) This report recognises the possibility of success that the industry offers. Thus it aims to propose a strong and achievable method of amercing and integrating the Heatherette brand into the mid and high-range of the cosmetics market.

Methodology The outcome for this report has been the product of primary and secondary research. The Primary research consists of questionnaires, interviews and focus groups targeted at Heatherette brand lovers and those who are less familiar to the brand but is aged 16-25. The primary research also focuses on both genders who share a similar psychometric profile and cultural values as it is understood that Heatherette designs menswear as well as womenswear.

The form of texts used in the secondary research include journals, websites and books. The analysis also consists of Strengths, Weaknesses, Oppurtunities and Threats (SWOT), The four P’s: Price, Place, Product, Promotion and perceptual mapping.

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Results & Discussion The Heatherette Brand

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Strengths • World-renowned couturiers • Clothing range for males, females and

children. • Fashion shows • Coveted after show parties that attract

industry • Vibrant and colourful design • A duo of designers Trevor Rains and

Richie Rich. • Production quality • Strong brand name/identity • Use of unconventional plus size models Weaknesses • Not selling garments through an owned

website • A fashion duo may have conflicting views • Lack of mainstream appeal • Distribution channels • Lack of print advertisement • Limited stock

Opportunities • Homewear • Cosmetics • Fair trade • Promotional discounts • Revamping the heatherette website with

a company named domain name. • E-commerce site • Collaborations Threats • Competitors • Changing consumer tastes • Tax increases • Rise in internet shopping

Heatherette is the ostentatious clothing brand of ex-cowboy Trevor Rains and club-kid Richie Rich. It first received its much-deserved acclaim in 1999 when a Patricia Field buyer was astounded by the one of the costomised leather tops Richie Rich was wearing. She was so impressed that Heatherette secured the buying of 20 items right there and then. (nymag 2008: online). Shortly after that the brand and both designers were catapulted into the spotlight of the fashion world. Everyone from pop stars such as Britney Spears and Foxy Brown to heiresses like Paris Hilton wanted to buy into this ‘fashion phenomenon that clashes class with trash and explodes with glitz and glamour.’ (filly.ca 2008: online) The Heatherette is a brand that epotomises an hedonistic underworld of

drag-queens, party animals and club-kid superstars. Their fashion shows are a theatrical parade of colour and bedazzled garments and accessories adorned with glitter and sequins. The colourful and glittery elements in Heatherette’s collections are a perfect basis for a cosmetic range. The a-list clientele that it still attracts along with its ‘average’ consumer suggests that the cosmetic range would comfortably operate in the mid to high-end side of the market. This venture into the competitive cosmetics market is further strengthened when we study the success Heatherette has had in the past when it combined its flare with Mac cosmetics. This collaboration was much anticipated by Heatherette fans. During a survey that was conducted when consumers where

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asked how they would rate MAC 48% selected highly and 32% rated it very highly. This evidence suggests the popularity of the MAC Cosmetics brand.

Some participants in focus group that was conducted described the collaboration as ‘amazing.’ And stipulated that ‘it has the right appeal, definitely what I expected. And the packaging is so cool you’d definitely notice it and be jealous if someone pulled it out of their handbag.’ The evidence from both the focus group and the survey signifies that there was a great demand for the Heatherette range of cosmetics for MAC which merely suggests an overall demand for cosmetics produced by Heatherette themselves. However other participants agreed that although the collaboration had been a success the colour scheme simply ‘was not daring enough’ considering what Heatherette as a brand signifies. ‘I didn’t

like that they played it a bit too safe. There’s too many pinks and pastels.’

Other brands success from various price points can be used to determine that the industry is worth venturing into. For example 41.8% of people asked when surveyed said that MAC cosmetics was there favourite cosmetics brand which prices a lipstick at £10.77, following with Rimmel (13.8%) at £2.91 then by Miss Sporty (6.9%) at £1.99. The most successful cosmetics brand that is most popular amongst those aged 16-25 falls within the mid-range price point which sets a minimum basis for the pricing of a similar lipstick by Heatherette cosmetics. So although MAC Cosmetics can warrant a £10.77 price tag for a lipstick due to the fact it is a trendy and professional make-up brand other brands without the ‘professional’ label, that are largely associated with the clothing industry, have been successful too. Namely, Chanel, Christian Dior and Yves Saint Laurent. However the NPD Group in 2007 reported a rise in more designers entering the cosmetics market, which represents a trend that Heatherette can certainly be apart of. Especially when we consider the NPD group’s findings of a 66% increase in the cosmetics dollar share of beauty industry.

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(cosmeticsandtoiletries 2008: onlne). A key potential competitor that has entered this market is Vivienne Westwood. Her cosmetics range is available in Japan. However the Recommended Retail Price (RRP) for a lipstick is ¥2,490 (UTOWA 2008: online) which is approximately equivalent to £20.55. This price positioning puts Westwood’s cosmetics into the high-end market which even out prices Yves Saint Laurent at £17.64, Chanel at £19.08 and Dior at £19.50. (Boots 2008: online) Vivienne Westwood can demand a RRP of the top end of the market due to how the Vivienne Westwood brand itself is perceived. For example, Vivienne Westwood has always been a designer that has been thought of widely as innovative and antiestablishment. Her unmistakable trademark has been to create designs that are considered anti-fashion, which has translated through to her cosmetics. For instance it features a colour palette that would not necessarily be considered as ‘normal’ or even ‘fashionable’ such as her green or purple lipsticks. This is an example of her tapping into the Japanese market successfully as that specific audience has be known to be more daring

in their fashion as we can see when we look at the Harajuku culture there. Her cosmetics range would definitely push the boundaries if it were introduced into Western culture. However, Heatherette and Vivienne Westwood do share one common trait; Their outrageous, show stopping designs and strong brand identity. Therefore Heatherette can easily translate their trademark staples of glitter, vibrant colour, sexy, playful, witty and theatrical design into a cosmetics range. The strong Heatherette brand identity can also ensure that it can comfortably sit in the mid to high-end side of the market alongside Vivienne Westwood and Urban Decay, who is also known for their more young and bold colour choices such as matte green liquid eyeliner.

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Competitor Analysis

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The perceptual map that has been devised determines how daring fourteen select cosmetics brands are in relation to price. From this map we can see how Vivienne Westwood is the most daring and equally the most expensive. Whilst Collection 2000 has the most neutral palette in addition to the lowest cost. The map also shows how there are two significant gaps in the market. One being a lack of a cosmetic brand that features mostly neutral colours yet is positioned in the high-end side of the market. The other being a range of the lowest price whilst being daring in the colourscheme.

It would be the obvious choice would be to position the Heatherette brand in one of those two areas. However when considering Heatherette’s appeal, strong identity and likeness to the only other brand, Vivienne Westwood, that lies in the high-end and most daring scale of the chart suggests that Heatherette could also compete in this position. This is further emphasized by Heatherette’s previous collaboration with MAC cosmetics that already placed it within the mid to high range of cosmetics with the RRP of a lipstick being approximately £11 also.

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Target consumer & Profile

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Name: Melanie Astbury Age: 21 Gender: Female Occupation: Philosophy student About me: I live in halls at the moment in Manchester but other than that I spend my time between a London suburbia and the Philippines.

❝ I think that the type of person that would buy Heatherette cosmetics would be the creative type. Y’know. I’d buy it… I’m into the big

hair, lot’s of eyeliner look. ❞

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Name: Harry Golding Age: 22 Male: Male Occupation: Hair stylist About me: Not much to know really. I work in Soho. Love fashion and photography. Oh and I’m bi.

❝ I donno, like, when me and my mates go out we’re mad! Yeah I wear makeup but that’s cos I’m vain and mostly just cos it’s fun. We don’t care what people

think.❞

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The primary target demographic for Heatherette cosmetics fits into the 16-25 age category, is female and is if a socioeconomic class B or even E (as they may fall into the unemployed student category). The secondary target audience may be male or of an older age. These types of consumer may be interested in the bold colour of the make-up as it fits into their lifestyle of partying or them being individuals. This is where the psychometric profile of the consumers share similar aspects. For example each consumer should belong to a similar belief system of being individualists or anti-fashion warriors whether they be emo, punk, goth, cross-dressers or any other social tribe that has makeup as apart of their iconography and in someway may differentiate them from another.

The members to these ‘social’ tribes may not share the same taste in music but it is evident that each group shares a similar intensity, appreciation and reliance to the music genre and the distinct taste in fashion that helps define. However this eclectic mix of consumer also mirrors Heatherette’s clothing range as they appeal to many types whether they be rappers or bubblegum pop stars. Richie Rich said that their collaboration with MAC cosmetics represented the “Good girl, bad girl, good boy, bad boy, bad girl, pretty boy, all of that! It’s about loving fashion, loving make-up, and having fun. Just look at me as our motto!.” This is the intended effect that is also the vision for Heatherette Cosmetics and therefore making it possible for different types of people to buy into the brand without compromising who they are.

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Marketing Mix

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When considering how a product may develop in the market we must consider four factors that may affect its success. These factors are known as the Marketing Mix and is divided into: • Product • Price • Place

• Promotion However to fully understand this method it is necessary to relate it to the product life cycle. This is important in maintaining and ensuring the success of a product or brand, maximising its growth period and avoiding decline.

Product Following from the previous information and including the brand identity of the Heatherette introducing Heatherette to become fully involved in the cosmetics industry is an opportunity that has the potential to be the most financially rewarding. The concept behind the product is to have daring colours which inkeep with the Heathertte brand. Colours that would compliment the range would be neon brights, a multitude of hot colour like reds and oranges and also classic cosmetic colours to create an entirely

different look that can also be mixed up with a brighter colour for evening. The collection will include lipsticks, foundation powder and crème, eye shadow, eyeliner, blusher powder and crème, lipglosses, fake eyelashes and mascara. On the following pages are some examples of what a Heatherette consumer could create with the range whether it be with the classic colours it may offer or the most outrageous ones.

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Price There are two options that the cosmetic line would fit in comfortably. Those are the middle market and the high market. It is believed that Heatherette can compete at a high level directly with brands such as MAC cosmetics, Vivienne Westwood and Urban Decay as a these brands all have strong identities. For example, MAC cosmetics, although being middle market, is seen to be a brand that offers a huge array of colour and tones which enables it to be a key part of the $6.3 billion company Estee Lauder. Sacks, D (2008) Vivienne Westwood’s brand identity is built upon a sense of rebellion and individuality, since she started a punk revolution in the 1970s, which is reflected in her non-commercial, high-end cosmetics range in Japan. Whilst Urban Decay has a reputation of being ‘funky’ and maintains a moral standard as they claim that their products are ‘cruelty free’ and even has certified vegan friendly products with a key focus of a variety of colour. (urbandecay 2008: online) Therefore Heatherette cosmetics can either sell as a middle-market brand with prices similar to MAC cosmetics and Urban Decay such as: Lipsticks £10.77 Foundation powder and crème £19-£21 Eye shadow £10 Eyeliner £11 Fake eyelashes £7.50 Blusher powder and crème £13 Lipgloss £11 Mascara £10 Or they can operate within the high-end market alongside Vivienne Westwood, but in the western market of which the Vivienne Westwood brand is not affiliated with yet. These prices would equate to:

Lipsticks £19 Foundation powder and crème £25-£30 Eye shadow £17.60 Eyeliner £15-£19 Fake eyelahes £10 Blusher powder and crème £25-£30 Lipgloss £16 Mascara £19 Place To ensure that Heatherette upholds its cult status it is imperative that it is not over distributed. This is why Heatherette should only begin with launching in cult fashion capitals exclusive to the South of England like Brighton, Shoreditch in East London, Covent Garden and Camden. These places are known for the fashion forward people that they attract so it seems obvious to make the Heatherette brand more accessible to those who truly appreciate the brand. However to also ensure that the Heatherette brands adopts a more mainstream appeal without diverting its other loyal customers a concession will be set up in Oxford Street, Selfridges, London. This will benefit the brand, as while people flock to pick up their favourite makeup they will come across the Heatherette brand as well. Promotion The promotion part of the marketing mix is an integral part to securing sales and consumer interest. The target consumer has been identified as being individual, daring and young. They belong to a similar belief system rather than being divided into class and gender. This enables the brand to transcend across many different social tribes that most are known to be anti-fashion and appreciate shock tactics in advertising. Therefore an advertising campaign has been devised that features a boy that

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could easily be mistaken as a girl because of his immaculate makeup.

The photography is simple and has a raw element. Another advert features the same boy in a backstage environment. He seems to be getting ready for a show, which holds a metaphor for a real life situation. To assist the launch of the cosmetic range into retail stores Seflridges will hold an event open to the public. The event will be a lock in after store hours for 3 hours. It will offer free drinks whilst a Heatherette fashion show will take place displaying the fashions of the season. There will be a DJ at the event blasting out Richie Rich’s new music ventures and funky disco and pop music music. Whilst this is happening costumers will be able to get their makeup done at a Heatherette concession promoting the cosmetics range. The costumers will be able to enjoy a 20% off treat on all Heatherette cosmetics whilst there. The event will be publicised in

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newspapers and mainly through word of mouth to keep its mystique. Entry is a first come first serve policy and holds a 200 people capacity. Below is mock-up of a flyer detailing the event.

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Summary and Recommendations

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Throughout this report it has been apparent that Heathetherette is a vibrant and popular brand that has received much acclaim in the fashion industry. Their uncommon traits such as using plus size models and men in makeup has differentiated them from the normalities in fashion. The strong use of colour in their shows has also made a strong basis of recommendation for entering the cosmetics market. However it is also apparent that they would fit best in either the high or mid sector of the market as the low-end may deter their target

audience from purchasing the product. This is because the must still feel that it is exclusive in some way. It is also recommended that Heatherette stage an event to draw in costumers and create word of mouth for the brand. The type of event that was previously recommended gives an incentive for people to spend their money.

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References

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Journals Bainbridge, J. 2008. ‘Keeping Up Appearances (makeup)’ ‘Marketing’ Sacks, D. 2008. ‘MAC Cosmetics’ Fast Company. Internet www.boots.com www.cosmeticsandtoiletries.com/formulating/category/color/7185151.html www.filly.ca/taste_and_style/fashion_report/designer_profiles/Heatherette.asp www.nymag.com/fashion/fashionshows/designers/bios/heatherette/ www.utowa.co.jp www.urbandecay.com Illustrations Fig 1 Richie Rich in full makeup and sequined top hat from Myspace.com Fig 2 The Real Me, Self portrait: Boy in full classic makeup by Jack Souillex, modified by myself Fig 3 Female hand holding Heatherette & Mac compact from Maccosmetics.com Fig 4 Mac cosmetics and Heatherette collaboration poster from Maccosmetics.com Fig 5 Vivienne Westwood website shot from utowa.co.jp Fig 6 Perceptual map devised by myself Fig 7 Focus group member Melanie Astbury by Melanie Astbury Fig 8 Focus group member Harry Golding by unknown Fig 9 Product Life Cycle graph from www.cordiant.com Fig 10 Self portrait: Boy about to apply lipgloss in a mirror by Jack Souillex, modified by myself Fig 11 Mock up of flyer for event night from Jlinsnider, modified by myself

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Bibliography

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Books Baines, P et al Fill, C et al Page, K. 2008. Marketing. New York: Oxford University Press. Belk, R W. ed. 2006. Research in Consumer Behaviour, Volume 10. Elesvier ltd. Jai Press. Jones , T et al Rushton, . 2005. Fashion Now 2China: Taschen. Journals ‘American Vogue’ (February 2009) ‘Bon’ (Fall/Winter 2008/2009) ‘Drapers’ ‘Fast Company’ (September 2008) ‘Nylon’ (January 2009) ‘Sphere’ (Volume 1, Number 3) ‘V Magazine’ (Winter 2008/2009) ‘Wallpaper’ (February 2009) Bainbridge, J. 2008. ‘Keeping Up Appearances (makeup)’ ‘Marketing’ Internet www.bellasugar.com/911623 www.cosmeticsandtoiletries.com www.drapersonline.com emeraldinsight.com www.filly.ca/taste_and_style/fashion_report/designer_profiles/Heatherette.asp www.greenvillearts.com/programs/collaborate.aspx www.lovetoknow.com www.maholo.com/heatherette nymag.com/fashion/fashionshows/designers/bios/heatherette/ oxygen.mintel.com/sinatra/reports/display/id=227738 profile.myspace.com/index.cfm?fuseaction=user.viewprofile&friendid=73460339

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profile.myspace.com/index.cfm?fuseaction=user.viewProfile&friendID=386027527 www.richandrains.com/ www.sephora.com/3 www.style.com/fashionshows/review/S2008RTW-HEATHERET/ www.sun-sentinel.com/features/lifestyle/sflli0111fashionreportsbjan11,0,2057361.story www.utowa.jp.com www.thebudgetfashionista.com/archive/beauty-trends-the-top-cosmetic-brands/

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Appendix

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QuestionnaireResults1. How old are you?

Response Percent

15 and under 0.0% 16 - 20 93.3% 21-25 3.3% 26-30 3.3% 31-35 0.0% 36-40 0.0% 40-50 0.0%

2. Are you or male/female?

Response Percent

male 30.0% female 70.0%

3. Which is your favourite colour(s)?

Response Percent

Fuschia? 26.7% Baby pink? 13.3%

Electric blue? 36.7% Purple? 23.3%

Sky blue? 20.0% Emerald green? 36.7%

Midnight black? 43.3% Fire Red? 6.7%

Neon Yellow? 10.0% view

Other (please specify) Comment Text Response Date

1. I like all colours... except purple.

Fri, 1/23/09 11:15 PM

2. white Fri, 1/23/09 5:15 AM

3. hot black Thu, 1/22/09 11:40 PM

4. white Thu, 1/22/09 9:10 PM

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4. How often do you wear makeup?

Response Percent

Everyday? 53.3% Occasionally? 16.7%

Only on special occasions?

13.3%

Never? 16.7% 5. What cosmetic brand is your favourite?

Response Percent

MAC? 43.3% Yves Saint

Laurent? 6.7%

Urban Decay? 6.7% Max Factor? 3.3%

Rimmel? 13.3% Chanel? 3.3%

Dior? 3.3% No.7? 0.0%

17? 3.3% Miss Sporty? 6.7%

Bobbi Brown? 3.3% Collection 2000? 3.3%

Clinique? 3.3% view

Other (please specify) Comment Text Response Date

1. maybelline Thu, 1/22/09 10:18 PM

2. dont have one Thu, 1/22/09 9:40 PM

3. Don't wear makeup, sorry to disappoint lol

Thu, 1/22/09 9:40 PM

4. Charles Penningworth

Thu, 1/22/09 9:10 PM

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6. How often do you purchase new makeup?

Response Percent

Daily? 3.4% Weekly? 6.9%

Fortnightly? 6.9% Monthly? 34.5%

Only as a gift for someone else?

13.8%

Only when I run out of a particular

item? 34.5%

7. Are you familiar with the Heatherette brand?

Response Percent

Yes? 21.4% No? 64.3%

No but I have heard of them

before? 14.3%

view

Please specify what you would expect from a Heatherette brand of cosmetics...

Comment Text Response Date

1. bright colours that are daring

Thu, 1/22/09 8:54 PM

8. If you answered yes to the above question... Please specify what words best describe the Heatherette brand...

Response Percent

Colourful 28.6% Dull 10.7%

Tacky 3.6% Over-priced 3.6%

Vibrant 21.4% Good quality 17.9%

Camp 0.0% Theatrical 14.3%

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Poor quality 0.0% Unattractive 0.0%

view

If you have any additional comments... (please specify) Comment Text Response Date

1. special Sat, 1/24/09 4:23 PM

2. outrageous Fri, 1/23/09 9:18 PM

3. Trashy, in a good way

Fri, 1/23/09 8:48 AM

4. vibrant, camp Thu, 1/22/09 8:54 PM

9. How would you rate MAC cosmetics on a scale of 1-5? (1 being the lowest and 5 the highest)

Response Percent

1 very badly 0.0% 2 badly 0.0%

3 unsure/average 19.2% 4 highly 46.2%

5 very highly 34.6% view

If you have any additional comments about the MAC brand...(please specify)

Comment Text Response Date

1. their foundation make my skin sore and blotchy

Sat, 1/24/09 3:09 PM

2. Lord Buckles and Lord Hebworth recommend it

Thu, 1/22/09 9:14 PM

3. service can vary a LOT instores!!!

Thu, 1/22/09 9:00 PM

4. love the limited edition pieces they do. best quality and value.

Thu, 1/22/09 8:54 PM

10. Are you familiar with Heatherette's collaboration with MAC cosmetics?

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Response Percent

Yes? 18.5% No? 81.5%

view

If yes please describe your thoughts on it? e.g likes/dislikes, was it what you expected?

Comment Text Response Date

1. quite predictable, as is everything with mac.

Thu, 1/22/09 9:00 PM

2. i like the bright packaging, i didn't like that it seemed to play it a bit safe... too many pastels etc

Thu, 1/22/09 8:54 PM

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Sample of Focus Group Members