Midterm Project

Urban Decay

History: “Urban Decay was founded in January 1996, the result of one woman's quest for purple nail polish. Sandy Lerner created a line of alternative makeup shades, beginning with 10 lipstick colors and 12 nail polish colors.” (http://makeup.lovetoknow.com/Urban_Decay) Lerner, the cofounder of Cisco Systems, teamed up with her business manager, David Soward, and fellow makeup visionary, Wende Zomnir, to come up with names like Roach, Smog, and Acid Rain for their color selections. Today, Wende controls the direction of the company as Executive Creative Director along with Eric Jimenez, Worldwide Retail Director and Global Makeup Artist, and Tim Warner as General Manager. The work environment at the UB headquarters inspires the innovative creativity that makes the company stand so far beyond competitors. “They follow certain policies in their working place. These are ‘dogs allowed’ and ‘the crazier, the better’ dress code.” (http://www.beautytipshub.com/cosmetics/urban-decay.html)

Customers: “Urban Decay cosmetics targets young, hip consumers with edgy products that include lip, eye, and nail colors, as well as other face and body products. With products that are never tested on animals, Urban Decay provides makeup that focuses on fun and individuality. Urban Decay defines itself as an innovator, with a brand statement that reads, in part, "Urban Decay is beauty with an edge. It is feminine, dangerous, and fun... appealing to celebrities, rock stars and anyone who relishes her individuality and dares to express it." (http://makeup.lovetoknow.com/Urban_Decay)

Competitors: Urban Decay is considered a prestige brand in the cosmetics industry. Some of the competitors for the brand include Kat Von D, Benefit, Too Faced, Stila, Smashbox, Makeup For Ever, and Lorac. “We’ve won some amazing awards, from Allure’s Best of Beauty (Hooray for 24/7 Pencils!) to PETA2’s Proggy for our cruelty-free and vegan efforts. We’ve even stolen prestigious packaging awards out from under brands like Avon and Revlon.” (http://www.urbandecay.com/about-us/about_us,default,pg.html)

Position in the marketplace: Urban Decay can be found at Macy’s, Ulta, and Sephora as well as online at Beauty.com. The brand has a growing presence ddle East.

Urban Decay Community: “And we would surely have failed by now were it not for the support of makeup artists who share our love of innovative performance products AND experimental color. We love to field their daily requests – usually because a celebrity client has stolen their favorite product. Our online reviews are off the charts; if we don’t get five stars, we just about cry. Thankfully, makeup junkies review our products more often and with more fervor than many of our competitors – you should see the comments for Eyeshadow Primer Potion! UD’s Facebook and Twitter communities are some of the biggest in the industry – we’re large in numbers and heavy on conversation. And we love our blogger friends! They’re like beauty editors, rabid cosmetics fans and makeup artists all in one. We do movies, TV shows and hot parties.” (http://www.urbandecay.com/about-us/about_us,default,pg.html) The brand gained even more of a community following when the Alice in Wonderland special release came out with the movie.

History: The idea for Victoria Secret came about when a businessman named Roy Raymond went to buy some lingerie at a department store. He was a bit embarrassed with the set up of the store and, as a graduate from Stanford School of Business, he saw an opportunity to create an environment where a man could

“Since it's beginning Victoria's Secret has seen an astonishing growth rate, with annual sales exceeding $3 billion by the late 1990s. A 1998 survey rated it the nation's ninth-most recognized brand and the company's name has grown to be synonymous with romantic and stylish lingerie.” (http://www.lingerie-uncovered.com/labels/victorias-secret-past.htm)

Customers: Victoria Secret is known today for the sex appeal factor found in its risqué lingerie, apparent in their world famous fashion shows, advertisements, and catalogs. They have been traditionally been targeting a younger market, but lately they have focused on gaining some of the more mature age group back to the brand. “Ms. Turney said Victoria's Secret needs to win customers back to its core lingerie business by producing more sophisticated merchandise. It plans to improve the quality of its sleepwear, and has hired executives, including a new head of its beauty division, to bolster its product and store design.” (http://online.wsj.com/article/SB120421181615799917.html) Customers are looking for well-made lingerie and undergarments at an affordable price. “Victoria's Secret has been targeting middle class America looking to avoid sleaziness due to the image that they carry. In the early 1990's they began to use Supemodels such as Tyra Banks, Heidi Klum and Karolina Kurkova amongst others, deflecting from using celebrity models and endorsments. Victoria's Secret prides themselves in Customer Service and they do believe in trying to upsell the Customer by offering frequent attention along with the Victoria's Secret Credit Card which can provide the consumer with additional discounts and savings including coupons on there merchandise.” (http://whiteorchids.hubpages.com/hub/History-Of-Victorias-Secret)

Competitors: One competitor of Victoria Secret is Fredericks of Hollywood, comparable in price and sex appeal level of the product. They aim their products at the same customer base. The company itself lists Hanesbrand as a competitor because the product is found in a wider variety of stores and thus more available to consumers. However, it doesn’t have the same aesthetic as the VS products. According to http://www.wikinvest.com/stock/Limited_Brands_(LTD), the PINK line of Victoria Secret has American Eagle Aerie line and Abercrombie’s Gilly Hicks line as competition.

Position in the Marketplace: “The astute marketing of Limited Brands, integrating its stores, direct sales and beauty products into a 360-degree approach has made the most of Victoria's Secret. Some say Victoria's Secret has won its market-leading position by virtue of aggressive promotion.” (http://www.lingerie-uncovered.com/labels/victorias-secret-past.htm) "With three distribution channels-stores, catalog and e-shop-and marketing communication to match, Victoria's Secret has consistently delivered its brand message at each contact point with the customer. In particular, a visit to VictoriasSecret.com shows an attention to detail that has been hitting the right balance between branding and usability for years. Not only is the first impression on target, with the screen dominated by a picture of a voluptuous model, but all the elements of a branded e-commerce are present: From color-palette, to thumbnail pictures to promotions." (http://www.brandchannel.com/features_webwatch.asp?ww_id=213)

Olay

History: Olay was created in 1949 by chemist Graham Wulff in response to his wife, Dinah’s, frustration when it came to finding a beauty cream that wasn’t thick, waxy, and greasy looking. After coming up with the final formula that fine tuned everything from absorption and texture to the instantly recognizable scent, Wulff found advertising account executive Jack Lowe to help him create a company to produce and market their product. “Within five years, Olay was enjoying phenomenal success in South Africa, and in 1959 expanded into England, the United States, the Netherlands, Canada and Germany. Needless to say, the Olay business flourished. Eventually, Olay was sold to Richardson Merrill, which later became Richardson-Vicks. In 1985, Procter & Gamble bought Richardson-Vicks and gained the Olay brand. In 2000, Procter & Gamble decided to shorten the brand name to Olay. The formula had evolved over the years, and the original name no longer fit with what women have come to expect from Olay—a light, greaseless formula that absorbs quickly into the skin.” (http://www.olay.com/Pages/HistoryofOlayOlay.aspx)

Customers: “Regarding the target market, he (Marc Pritchard, GM of Proctor and Gamble’s cosmetics unit) says, P&G has learned through scrupulous study that the Oil of Olay consumer is highly attuned to her skin care needs. "She believes skin care is the key to true beauty," he notes. Customers first turn to the brand when they see the initial signs of their skin aging, often in their mid-20s, and stay with the brand for the rest of their lives, says Pritchard. Such women tend to have higher than average incomes and a willingness to spend more money than usual on skin care needs, he adds.” (http://findarticles.com/p/articles/mi_hb3007/is_14_20/ai_n28719958/) Customers today also look to the brand for their sun care and advanced anti-aging needs. The company continues to expand their product line in order to simultaneously expand their customer base.

Competitors: “Olay products stood out from competitors because instead of selling a cream, Olay sold a pink fluid in a glass bottle that became iconic. Even the marketing of Olay products separated the company from its closest competitors. The pink fluid was never explicitly sold as a moisturizer or a beauty item, but as a “secret” to beauty and younger looking skin.” (http://cosmeticshandbook.com/olay-skin-care/olay-skin-care.htm) Some of the top competitors of the brand are Revlon, L’Oreal, Neutrogena, and Aveeno. All of these brands can be found in the same stores and at the same price point as Olay.

Position in the Marketplace: “In 1999, Total Effects, Olay’s first product in the category, launched and was sold at a price point significantly higher than most commercial moisturizers. The gamble worked and now there are many anti-aging moisturizers on the market that are even more expensive. Olay’s new slogan has been updated as well, from “Share the secret of a younger-looking you” to “Love the skin you’re in”. The brand has expanded to include moisturizers, cleansers, soaps and lotions for all skin types and even sunscreen for another level of skin protection.” (http://cosmeticshandbook.com/olay-skin-care/olay-skin-care.htm) The company positioned itself as an affordable skin care and beauty solution in drug stores nationwide and can still be found in many countries across the world including Canada and the UK. They also make products accessible online at drugstore.com with no shipping costs and coupons that can easily be found by customers.

Community: “Olay is one of the most recognizable brands in the skin and beauty industry, familiar even to those with little skincare experience. Olay has built this reputation in part by receiving a number of awards and recognition from various health and beauty publications, as well as more generalized media outlets. Olay excels in the way in which it helps customers find ideal products. By clicking the Skincare Consultation link found on the Olay homepage, you'll open a new browser window containing a survey. As you progress through the survey, you'll answer a variety of questions regarding your skincare goals, age, factors affecting your skin, skin type, skin color, skin concerns, current skincare regimen and more. The survey is extensive and highly detailed, allowing for high levels of customization. Following the completion of the survey, Olay will provide you with product recommendations, including cleansers, moisturizers, and other items designed for your body and face. You can even watch a video demonstration with more information about each recommended product. Although many skin and beauty product manufacturers offer product recommendations customized to your needs, few do it in such a streamlined and intuitive fashion.” (http://www.fitnesshealth101.com/review/skin-beauty/oil-of-olay)