MKB2706 Brand & Product Management
Added on 2021-07-07
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MKB2706 Brand and Product ManagementAssessment 2: New Product Development for AESOPStudent name: Hanbo ZhengStudent ID: 28207327Tutorial day/time: Thursday 1:00pm - 2:30pmWord count: 1515
Executive SummaryThe new product I have developed for AESOP in the Australia market is the Herbal ExtractFoundation. It is a foundation that not only provides concealing and skin brighteningfunction, but also contains Herbal Extract to help improve the condition of the skin.Customers would be willing to buy it because in the market, most cosmetics contain essence,pigment, and preservatives, which could burden the skin or increase irritation of the skin(WebMD). Therefore, a foundation that include both the skincare and makeup functionscould significantly fulfil customers’ needs. It is a potentially viable product for AESOPbecause: firstly, the objective of AESOP has always been to provide hair, skin and body careproducts with the best quality; and the sources AESOP used are all plant-based andlaboratory-made ingredients that can provide with a proven record of safety and efficacy(AESOP). Consequently, a foundation with Herbal Extract meets the value of AESOP andcustomers would also trust this product due to the brand image of AESOP. Furthermore, thereare many brands in the market, such as Chanel and Dior, develop both makeup lines andskincare lines, to design more products and attract more customers (Richard). To follow thistrend and survive in the beauty industry, AESOP should also start to research and develop themakeup line and the Herbal Extract Foundation could be the first product to launch. Figure 1.1 mock-up image of Herbal Extract Foundation
Idea generation process1. Ansoff’s growth matrixFirms use the Ansoff growth matrix to analyze and develop their growth strategies. There are four strategies that can be used to help a firm grow and also analyzes the potential risks (Mindtools). For AESOP, since the beauty market is already existed and mature, to help the growth of AESOP, I choose to use product development strategy in my idea generation process. That is, developing a new product to enter into an existing market.This strategy can be worked in the following aspects:MethodsImplementationsInvesting in R&D to develop new products to cater to the existing market.Since the sources AESOP used are all plant-based and laboratory-made ingredients, R&D could follow this value to develop new products within these ingredients.Acquiring a competitor’s product and merging resources to create a new product that better meets the need of the existing market.All competitors’ products focus only one function between makeup and skincare, AESOP could create a new product that can meet both these two functions to better meetthe need of the beauty market.Forming strategic partnerships with other firms to gain access to each partner’s distribution channels or brand.Although AESOP is successful in the skincare industry, makeup product is a brand-new challenge for the organization. AESOP could find a makeup organization toform a strategic partnership which leads to awin-win situation.Figure 1.2 Product development strategy for AESOP2. Customer AnalysisAccording to Lavidge’s Hierarchy of Effects Model, it is a long process from customers have awareness of a product to customers finally decide to buy a product (Lavidge). Therefore, an analysis of customers could help organizations know more about what the next product should be like, and a customer analysis is broken down according to the customer base into groups and segments.SegmentingAgeMost customers belong to Generation Y, which are well-educated about the importance of skincare and are more used to shop online.GenderMost customers are women. But more and more male customers identify the importance of skincare.Social classMost customers belong to the social class which is well-educated and high-income due to the positioning of luxury product of
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