Qualitative Research Report

Qualitative Report

Ardency Inn Cosmetics

Group 6

Table of Contents

Background.……………………………………………………...Pg 2

Executive Summary……………………………………………..Pg 3 - 5

Methodology……………………………………………………...Pg 6

Findings.…………………………………………………………..Pg 7 - 13

Conclusion………………………………………………………..Pg 14

Recommendations……………………………………………....Pg 15 - 18

Appendices……………………………………………………….Pg 19 - 20

Citation…………………………………………………………….Pg 20

BACKGROUND/OBJECTIVES

Ardency Inn is a new edgy cosmetic brand located in New York City. The brand positions itself towards the music player and lover in the growing urban environment. The current tagline, “Beauty Unplugged,” targets itself towards the younger and more innovative music crowd.

In an effort to reposition Ardency Inn and bring more sales to the brand, Team 6 has done comprehensive research to find the right target market and brand positioning for what beauty consumers actually want. The goal of Team 6 and account management is to reposition Ardency Inn as a brand so it appeals to a broader range of women, henceforth increasing sales and awareness.

Currently, Ardency Inn is targeting a niche market and needs to expand its product ranges and marketing so it targets more than just the punk rock girl. Based on our findings, AI will need to reposition the brand image and adjust its target market.

The direct objectives from AI management are:

Reposition the brand so it aligns with consumer habits

Deliver appropriate IMC objectives to the Ardency Inn management

EXECUTIVE SUMMARY

Research on Ardency Inn was conducted in order to evaluate current consumer shopping behavior trends to determine how Ardency Inn would benefit most from repositioning. Team 6 conducted 15 one-on-one interviews with women who fit the target consumer to provide management with the proper information and analysis that would help them decide how they should reposition the brand and which aspects could benefit most from a change.

In terms of frequency and purpose of wearing makeup among the target audience, the findings were unanimous: 100% of participants wore makeup multiple times a week in order to enhance their natural features and boost their confidence. All-natural, “good for you” products are favored in this product category. Participants are looking for cruelty-free, all natural, and organic makeup (so makeup brands should consider this for marketing purposes). Correspondingly, participants embrace diversity. All participants want to feel included by their makeup brand, which means offering many shades for different skin tones.

When it comes time to purchase cosmetics, the research shows that Ardency Inn’s target consumer considers trusted recommendations, level of quality, and price before buying. Participants revealed that they are primarily influenced by recommendations from independent reviewers like YouTube vloggers, bloggers, and Instagram users. Magazines and celebrity endorsements are less effective in this area. Additionally, quality is a major factor for consumers who are deciding whether or not to buy. Consumers expect cosmetics to be of a high quality (with characteristics like longevity and blendability) across all price points, brands, and products. However, while quality is highly important, the research has shown that price is the overall deciding factor of a purchase occasion.

Unfortunately, the research has also revealed that the overwhelming majority of participants have never heard of Ardency Inn. When showed the website, participants used words like edgy and bold to describe the brand, but some said it looked like an Urban Decay knockoff and that the packaging needs updating. All participants feel like AI lacks more natural makeup options. Participants would prefer to try the makeup in person especially because they feel like the prices are too high, and therefore their assumed risk of wasting their money is high as well. Also, participants said it was hard to find information like reviews about the brand and products. Overall, participants are unlikely to purchase AI because of its statement image and their lack of awareness and knowledge of the brand.

Considering the findings, it’s apparent that AI has many opportunities to improve the brand. Overall, our research has shown that Ardency Inn’s target customer would respond best to a change in the overall theme of the brand. Specifically that would mean the brand would move away from its current punk rock image and instead focus on everyday makeup featuring natural, healthy ingredients.

Additionally, the research has shown that participants didn’t relate to the “Beauty Unplugged” tagline so we recommend changing it to something more aligned with the new positioning: “Beautifully Bare.” AI’s main goal should be to spread more awareness about the brand, starting with a new tagline. After that, AI should consider softening the punk rock girl image so it is more inclusive. Natural can also make a bold statement.

Since participants are relatively price sensitive with a high value imposed on quality and price, they depend on testing the products in stores. AI could benefit from promoting that they are available in brick and mortar stores through offering free samples. AI may have to lower their prices if they want to penetrate the market more effectively. AI should also consider more price incentives like coupons, social media contests, or giveaways.

While participants prefer testing products in stores, they also depend on social media for recommendations and reviews. And all participants want to interact with their favorite brands on social media. This insight is a major opportunity for AI. A giveaway or contest for relaunching the brand should be carried out across all social media platforms. AI would benefit from a sponsorship with an influential YouTuber or blogger. It’s important that AI is active and engaging on all social media platforms especially Instagram.

METHODOLOGY

In order to gather this information fifteen in-depth, 1:1 interviews were conducts. The interviews took place in various location throughout New York City in the month of March, 2017. The informants from these interviews were in the target market age range of 18-34. The main consumers are millennials still in college or have graduated college with an income from about $30,000 to $80,000 a year. The questions were aimed to gather as much information about the consumers shopping habits, brand preferences and makeup usage as possible.

Secondary research was also used to gather background information on what types of questions should be asked and who should be answering them to get the most relevant information for the brand.

FINDINGS

Makeup Products and Habits

Based on the conducted interviews we were able to determine the underlying purpose that women have to wearing makeup. The primary reason many wear makeup is to enhance their natural features and to boost confidence. The process of applying makeup is fun and the transformation women see in themselves after makeup has been applied is uplifting. The range of day to day activities and hobbies of the participants vary supporting that the market for cosmetics is large and if a brand doesn’t close itself off by only targeting one niche market, there will be many potential consumers.

100% of interviewees wear makeup within a range of 4-6 days a week implying that this target market is full of heavy cosmetic wearers.

All participants wear makeup but most consider themselves to be amateur or proficient in skill level, rather than professional or expert.

Many of the women consider themselves to have an active or busy lifestyle meaning they would like easy to use products. Some state they have a more casual lifestyle in which case easy to use products are still beneficial.

When asked what look they hope to achieve with their makeup the most frequent answer was a natural look. Majority stated they used makeup to even out their skin, create a “classic” look and on occasion experiment with their makeup, typically at night or for an event.

Brands such as NARS, CoverGirl, and NYX are all iconic makeup brands.

Consumers like these brands because of their wide range of products, reputation and interesting brand marketing or positioning.

Participants generally decide on a purchase after taking price into great consideration.

Being able to feel the product and see the color before purchasing is a huge advantage to consumers.

NO consumers stated they preferred shopping online for makeup. Only as a last resort would they look online for a product.

All mentioned Sephora when asked where they buy makeup.

A quarter of respondents mentioned Ulta.

When searching for drugstore brands, CVS and Walgreens were mentioned the most.

Ardency Inn is priced more closely to brands found in Sephora or Ulta than drugstore.

Interviewees stated the most they would spend on a single makeup product was $30-$40. The foundation would be on the higher end of this targets budget at $38.

Barriers

When searching for new products, women tend to trust third party individuals opinions because it’s unbiased.

Hearing how a product worked on someone else motivates them to purchase for themselves.

There is a market for all natural and organic brands in the industry. Women want to wear cruelty-free, organic makeup that is good for their skin and morally comfortable but they feel there is a lack of options in the market.

All women responded saying they appreciate cruelty free products and wish more brands were.

All respondents who said they want more organic brands don’t currently wear natural makeup because they feel it is not available.

Product quality is extremely important to consumers regardless of the price point. Even if the product is on the less expensive end, high quality is still expected.

Longevity and blendability were the most frequently desired benefits of a product.

Ardency Inn should focus on their product attributes/benefits in their cosmetics and their descriptions.

In today's society, keeping up with social media platforms is extremely important.

Instagram is the favorite platform for consumers to keep tabs on their favorites brands. This platform allows for interaction between customers which helps build CRM and is an excellent way to showcase product images.

Many reported commenting on giveaway posts or tagging their friends for a new launch.

Almost half of respondents feel there is a lack of diverse representation in the beauty industry.

When asked “What stopped you from purchasing a product?” 100% of the answers related to price. Women overall think products are too expensive.

Unaided Motivators/Incentives

Women chose their favorite brands based on color range, quality and ingredients.

There wasn’t a clear winner for a favorite brand but reasons were very similar. Favored brands included NARS, Covergirl, Too Faced, and Tarte. All women said these brands were there favorite because there was solid quality across the board of products and they had a good product/color selection.

Ardency Inn should be inspired by the following brands:

NARS for their pigmented products and wide range

Covergirl for their fun and consistent marketing

Too Faced for their creative packaging and names

Tarte for their social media presence and frequent promotions

Respondents want to see ingredients list and where products are being produced.

Brands should have full transparency on their website and social platforms.

Aided Motivators/Incentives

Only 10% of interview subjects had heard of the brand.

Respondents are less likely to test a brand if they can’t find any information or reviews about it.

The target of AI is currently too narrow. They need to broaden their look so more consumers can relate to the brand.

Commonly used words to describe the website were edgy, bold and many claimed it looked like an Urban Decay knockoff.

All feel they have a lack of makeup for a natural look.

More natural products and looks need to be featured.

Half stated they would not be likely to make a purchase due to the bold image of the brand. The half that were potential consumers stated they would want to see more reviews and see the product in person before purchasing.

Being able to sample products would be a motivation for new consumers.

There would be more interest if the brand image wasn’t so bold and specific.

The main reason interviewees were unlikely to purchase is because it didn’t fall in line with their makeup desires, which is majority a natural look.

Products that were of interest to participants were the eyeliner and mascara, very basic product that can be used to achieve a variety of makeup looks not just a edgy rock look.

One of the biggest complaints with the brand was the lack of variety and the packaging. It looks cheap and for the price of products, they should look high quality.

The tagline isn’t understood enough.

Only one-fifth liked the existing Beauty Unplugged tagline.

Majority didn’t understand what is was trying to say.

Some felt it was too similar to Urban Decay’s.

Price of products is too high for image of brand.

Without any of the women having tried the products yet, one of the main complaints was that the price of the products were too high.

There are other brands at that price point that they view as better.

CONCLUSION

In conclusion, Ardency Inn’s target audience is women from ages 18 to 35 years old. The main consumers are millennials still in college or have graduated college with an income from about $30,000 to $80,000 a year. Millennials today have a social and active lifestyle and are interested in wearing makeup to enhance their features and boost confidence. AI needs to stray away from it’s traditional punk, rocker look and create more naturally enhancing cosmetics that will appeal to a larger target audience. AI’s target consumer wears makeup to enhance their natural features and boost their confidence and expects her cosmetics brand to embrace diversity and inclusivity. Consumers expect cosmetics to be of a high quality, natural, cruelty-free, and healthy. However, price is the overall deciding factor of a purchase occasion.

Through our extensive research we have found that AI mainly needs to establish higher credibility through spreading awareness of the brand and showing that it knows its consumer. Relatability is key. The company can build its awareness through public relations and by having a greater presence online especially on social media. In store trials and free samples will also benefit the brand’s image and increase customer purchase.

Overall, the company has a lot to reposition. They will do this by following the recommendations of Team 6; specifically, beginning with renaming the brand. We would suggest either shortening the official brand name to simply “AI” or changing it to “Bare.” However they are already 100% cruelty free and the products are sold at high volume cosmetic retailers, which resonates highly with customers.

AI’s main goal should be to spread more awareness about the brand. A new tagline will help grab the attention of potential consumers. Once they have a consumer’s attention, they need to hold it: AI should also soften the punk rock girl image so it is more inclusive. Relatability will motivate a consumer to buy.

In addition to sampling, AI may have to lower their prices if they want to penetrate the market more effectively. AI should also increase spending and effort toward sales promotion to attain higher visibility in the market.

Recommendations via social media are huge in this market. It’s essential to the brand’s success that AI produces engaging and relatable content on all social media platforms.

RECOMMENDATIONS

New tag line for Ardency Cosmetics: Natural. Beautiful. You

New Positioning: Our new positioning for Ardency Inn relies on moving away from the punk rock vibe and more to everyday makeup made with natural ingredients. The “bold and “edgy” brand image is too narrow and doesn’t properly appeal to the target market. We recommend that Ardency Inn refocuses its brand image toward a more natural and high-end cosmetics brand by offering more neutral colors and a variety of shades for different skin tones. This makes the brand more inclusive and appealing to its current target market.

To reposition the brand, we have to give Ardency Inn more of a presence in the beauty community, making it more available in department and specialty stores. It should promote itself in-stores by offering demonstrations and samples. This would help spread awareness about the brand.

Potential consumers among Ardency Inn’s target market are extremely active on social media. Ardency Inn would benefit from an increased effort in maintaining independent, official Ardency Inn YouTube and Instagram pages. To spread awareness about the brand and its products, Ardency Inn should post tutorials and host contests on its YouTube channel and Instagram.

The Ardency Inn brand is not well-known, so we suggest Ardency Inn focuses attention on building a community among its consumers. We want consumers to recognize the brand whether it’s for its products in-stores, on social media, or through its new tagline, “Natural. Beautiful. You”

Ardency Inn needs to increase brand awareness throughout entire IMC.

Within stores, Ardency Inn should introduce promotional events that expose consumers to the brand through knowledgeable salespeople and free product samples.

Other than social media recommendation, in-store trials and swatches were the next most influential thing for making a purchasing decision.

Our findings suggest that our target would respond positively to stocking Ardency Inn in-store at well-known and trusted cosmetics chains (ex. Sephora, Ulta, drugstores, department stores).

Respondents stated that trial before purchase was important to them, and that they would only purchase online as a last resort.

Promotional events could include bringing well-known beauty bloggers to do meet-and-greets and product demonstrations in-store, or giving free makeovers using AI products.

Products should be easy to use for any consumer and the design of the products should be simple.

Most women in the target wear makeup, but don't consider themselves to be professionals.

Consumers with an active or busy lifestyle would benefit from easy to use cosmetics.

Increase social media presence and get more testimonials.

A significant portion of Ardency Inn’s integrated marketing communications strategy should be allocated toward producing earned media across social media outlets that consumers would trust and respond to well.

Potential consumers among Ardency Inn’s target market are extremely active on social media, with high levels of time and interest spent on social media apps and websites (particularly YouTube and Instagram) and a heavy interest in user-generated content.

100% of respondents acknowledge that social media celebrities, beauty icons, and friends influence their purchase decisions. Ardency Inn would most likely benefit from an increased effort in maintaining independent, official Ardency Inn YouTube and Instagram pages.

Ardency Inn should allocate time and resources to gifting products (both to promote longstanding, permanent products as well as to introduce new product lines in the future) to beauty gurus and social media influencers for review.

Tone down the punk rock image.

The “bold and “edgy” brand image is too narrow and doesn’t properly appeal to the target market. The punk beauty market is already saturated and Ardency Inn’s current share of it is too small to be sustainable in the long-term. We recommend that Ardency Inn refocuses its brand image toward a more natural and high-end cosmetics brand by offering more neutral colors or variety of shades for different skin tones.

Change the brand name to Ardency Cosmetics and tagline to Beautifully Bare

The research has shown that the target audience finds it off-putting and confusing. We would suggest shortening the official brand name to simply “AI.”

Participants didn’t understand the tagline so we suggest changing its existing tagline to “Beautifully Bare” and redesigning its packaging. This change might also solve the current issue of a low perception of value in terms of Ardency Inn’s current price level.

Ardency Inn should show their products on a diverse range of skin tones.

The target would respond positively to a step toward inclusion of all backgrounds and races in promotional and demonstrative material.

Ardency Inn should put themselves in a store with a point system set up in place.

A points system is the most popular form of rewards. Other than money off, consumers like having a point system because they feel like they are being rewarded for shopping and if they get a free sample at the end of a purchase it excites them and makes them want to come back.

APPENDICES

INTRODUCTION

What are your primary reasons for using makeup?

What are your hobbies? How do you spend your free time?

How would you describe your lifestyle?

How do you describe your personal style?

COSMETICS GENERAL DISCUSSION

Are you a frequent user of makeup? How many days a week do you typically wear makeup?

Does your makeup routine switch based on your schedule for the day? If so how.

How often do you buy makeup and for what reasons?

To refill used up products, to experiment with something new, etc.

What look are you hoping to achieve with your makeup?

What brands come to mind when you think of makeup?

What category of makeup are you most loyal in?

Within that category, is there a specific brand you’re also loyal to?

What brand has the best marketing?

What level of skill do you consider yourself as having for makeup?

What influences your makeup purchases the most?

Reviews? Bloggers? In-store trials? New products? Trends? Price?

Where do you buy your makeup?

How much do you spend on makeup? What’s the most you’ll spend on a single product? What’s the most you’ll spend on cosmetics in a single trip to the store?

BARRIERS

When searching/exploring for a new product where do you look?

Online, magazines, friends

What don’t you have in the cosmetics industry but want?

Why do you want it?

What characteristics are most important to you in makeup?

Cruelty free, All natural, no fragrance, etc

What is your favorite social media platform to keep up with brands?

Have you ever interacted with that brand on that platform? If so, for what reason?

What would you change about certain aspects of/in the cosmetic industry?

If you are interested in a product but don’t end up buying it, what stops you from purchasing it?

UNAIDED MOTIVATORS

What is your favorite brand and why?

What is memorable about your favorite brand?

What pictures come to mind when thinking of the brand?

What are your favorite promotions brands have used?

What information do you want to see on a company's website and other platforms?

What is your favorite makeup product and why?

AIDED INCENTIVES / MOTIVATIONS

Have you heard of the brand Ardency Inn Cosmetics?

If so, where were you exposed to it?

If not, show the website

Based on the website, what words would you use to describe the brand?

After looking at the products, would you be likely to make a purchase?

What do you think the brand is missing in its range?

What would make it a more desirable brand to you?

What would motivate you to make a purchase from AI?

*expose to tagline* Does this tagline make you interested in the brand?

What do you think AI is trying to say with this specific tagline?

CITATIONS

Terlep, Sharon. "Millennials Change the Complexion of the Beauty Business." The Wall Street Journal. Dow Jones & Company, 03 May 2016. Web. 26 Mar.

2017.

Rasmus, Tara, and Beauty • Makeup • Sephora. "Ardency Inn Beauty - New Makeup

Line Sephora." Ardency Inn Beauty - New Makeup Line Sephora. N.p., n.d. Web.

26 Mar. 2017.

"Millennials Dominate US Beauty Market." EMarketer. N.p., 14 Dec. 2016. Web.

26 Mar. 2017.