Kiehl's Marketing Report:

Calendula Herbal Extract Alcohol-Free Toner

Huy G. H. Nguyen, Phat T. Huynh, Nam H. V. Nguyen, Chau N. Bui, Nghia T. Nguyen
Principles of Marketing
PMk-T322WSB-1
Ms. Nguyen Thu Huong

 TABLE OF CONTENTS

Executive Summary 01
Introduction 02
Company Description 02
Product Description in Vietnam market 03
External Environment 04
Macro Enviroment 04
Micro Environment 05
SWOT Analysis 06
STDP Analysis 11
Segmentation 11
Targeting 12
Differentiation 13
Positioning 15
Marketing Mix 17
Product 17
Price 20
Place 22
Promotion 23
Conclusion 26
Reference 27
Appendix 30
 I. EXECUTIVE SUMMARY
Kiehl's has gained popularity in the cosmetics market for decades. However, for
the Vietnam market in particular, even though the brand is relatively new, it still
manages to grasp public attention by efficiently implying marketing strategies.
The report aims to provide a detailed insight into the marketing activities of
Kiehl's.

This report applies SWOT analysis, STDP technique, and Marketing Mix to the
focused product, which is Kiehl’s Calendula Herbal Extract Alcohol-Free Toner in
the 2021 context. At the end of the report, some viable measures will be
suggested for further improvement and adjustments for core issues in
foreseeable future.

Page 1
 II. INTRODUCTION
1. Company Description
History:
Founded by John Kiehl in 1851, Kiehl's began as an old-world apothecary located in
New York's East Village (Kiehl's, n.d.). Kiehl’s background represents a synthesis of
cosmetic, pharmacological, herbal, and therapeutic expertise passed down through
centuries.

In April 2000, the brand was incorporated into the multinational corporation
L’Oréal, marking a turning point for the brand (L’Oréal, n.d.).

Vietnam Market Entry: On November 17th, 2015, Kiehl’s marked the official
presence of the brand in Vietnam.

Figure 1
Kiehl’s Old-World Apothecary Beginnings
(captured from kiehls.com)

Mission statement:

Kiehl’s aims “to improve in some way the quality of the community to which it is
committed, making for better citizens, better firms, and better communities” (Kiehl's,
n.d.).

Vision:

Kiehl’s plans to “increase the brand's presence globally but maintain it as a luxury line
rather than a mass-market one”(Hays, 2000).

Page 2
 II. INTRODUCTION

2. Product Description in Vietnam market

Function & Features:

Kiehl's Calendula Herbal Extract Alcohol-Free Toner is formulated with calendula
extract and contains five skin-soothing compounds to gently soothe and refresh skin,
and help reduce signs of skin stress including redness, oiliness, and sensitivity (Kiehl's,
n.d.).

This toner is paraben-free, fragrance-free, silicone-free, and alcohol-free, therefore, it

is ideal for balancing normal-to-oily skin types, including sensitive and acne-prone
skin types (Kiehl's, n.d.).

Market share:
The Vietnam skin care products market accounted for $854.3 million in 2019 and was
projected to have an increased revenue opportunity of $1,154.25 million from 2020 to
2027 (Deshmukh and Kale, 2020). In Vietnam, Kiehl's was valued at about 1.3% of the
market share (Passport, 2021).

Brand awareness:

Kiehl's is known as a high-end natural cosmetics and skincare brand with a global
reach, with its unique marketing strategy of word-of-mouth and a generous amount of
free samples to increase brand awareness.

In Vietnam, although Kiehl's only takes up a small share of the market, Kiehl's manages
to maintain its attraction and reputation. According to Statista's survey (2020), Kiehl's
accounted for 8% among the most popular beauty brands used among female
consumers. (*See Appendix A)

Page 3
 III. EXTERNAL ENVIRONMENT

1. Macro Environment
Economic environment:

The GDP per capita of Vietnam has an increase throughout recent years.
However, under the wave of COVID-19 in 2021, beauty and skincare products
witnessed a massive decline in spending in the second half of 2021.
(*See Appendix B)

Figure 2
GDP per capita in Vietnam from 2015 to 2021
(captured from data.worldbank.org)
Technological environment:
Beauty and personal care are the most popular online shopping categories.
Keeping up with the industry, Kiehl's marketing strategies try to maximize the use
of social media. Especially in 2021, when customers experienced lockdowns, there
was a great opportunity for e-commerce platforms to develop swiftly.
(*See Appendix C)

Page 4
 III. EXTERNAL ENVIRONMENT

2. Micro Environment
Customer:

Kiehl's target market is young adult women from 23 to 35 years old, who have a
stable income and specific skincare needs. After the impact of COVID-19, there are
two shifts in customer behaviors:
1. Customers are searching for more advanced and eco-friendly treatment
(Kantar, 2021).
2. Customers respond better to the development of multi-channel (ministores
and online platforms) to diversify their choice (Kantar, 2021).

Figure 3
More sophisticated beauty demand
(captured from Worldpanel Division)

Competitors:

The direct competitor of Kiehl's in Vietnam market is Paula's Choice. Specifically,

for Kiehl's Calendula Herbal Extract Alcohol-Free Toner, Paula's Choice offers
Calm Soothing Toner, which has a similar price and function, thus aiming at the
same targeted customers. Both brands have to use marketing activities to
differentiate in consumers' perception and position themselves in an overcrowded
market.

Page 5
 IV. SWOT ANALYSIS

Figure 4
Kiehl’s Calendula Herbal Extract Alcohol-Free Toner's SWOT Analysis

Page 6
 IV. SWOT ANALYSIS

1. Strengths
Well-known Global Brand:
Kiehl's is a beauty brand that has an international presence. Purchased by
L'Oréal with the promise of financial support and tactical strategies to help
Kiehl's grow globally and enhance the brand's impact (Latana, n.d.). In Vietnam,
Kiehl's still appears to be popular and easily integrate into beauty market.
Superior Product and Service Quality
With the defined brand identity, Kiehl's determined to develop products with
natural ingredients and pharmacological knowledge. To promote product
quality and customer loyalty, Kiehl's applies free sample strategy effectively.
Customers are likely to receive free samples in various ways when purchasing
Kiehl's products, and "Try before buy" has been Kiehl's competitive advantage
for a long time (Kiehl's, n.d.).

Figure 5
Kiehl's Samples (captured from ebay.com)

Online Shopping Experience:

Over the last three years, Vietnam has been substantially affected by the
COVID-19 pandemic, which shifts customer preference toward E-commerce
platforms. With this insight, Kiehl's attempts to build many customized online
services (a chatbot, instant skin reader, etc.) to provide personal
recommendations and better online shopping experiences.

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 IV. SWOT ANALYSIS

2. Weaknesses
Poor Distribution:
The lack of diversity in distributing channels is a problem the brand is struggling
with. While Kiehl's has its own department stores, an exclusive partnership with
Lazada, and the official website, other brands emphasize on pushing the
distribution system further by incorporating wholesalers and retailers.

Low Spending on Advertising:

Hurcher (2018) stated that Kiehl's has never really spent more than $20.000 for
mobile or display advertisements. The lack of the brand's TVC strategy also
strongly indicates by the fact that the firm's official Youtube channel is mainly
tutorial videos and seasonal campaigns without any significant promotion.

Poor Brand Images Management on E-commerce platform:

The brand's inconsistency in its promotion images on multiple platforms also has
a detrimental effect on brand awareness. Whilst Kiehl's official website
maintains a fixed color scheme, its products display illustrations on the Lazada
platform is an odd combination of incompatible fonts and colors. This would
discourage customers and cause inconsistent brand perception.

Figure 6 Figure 7
Kiehl's official website Kiehl's image on LazMall
(captured from kiehls.com.vn) (captured from lazada.vn)

Page 8
 IV. SWOT ANALYSIS
3. Opportunities
Increased awareness of beauty care:
With the rising standard of living in Vietnam, Vietnamese consumers are
becoming more aware of beauty and personal care products as well as meeting
basic needs (Briefing, 2022). As Nguyen affirms, besides cleansing or whitening,
customers are now also paying attention to some other skincare awareness such
as moisturizing, anti-aging, anti-acne, make-up removing, and balancing skin
(2020). With the aforementioned function, Kiehl's Calendula Herbal Extract
Alcohol-free Toner has met several requirements.

Vietnamese population is aging:

Passport (2021) predicted that there would be a rise in demand for anti-aging
products over the projected timeline. When it comes to the effects to cosmetic
brands, Kiehl's has a significant advantage due to the fact that most of its
products contain anti-aging ingredients such as Vitamin C, Squalane, etc.

Figure 8
Activated C and Squalance
(captured from kiehls.com)

Page 9
 IV. SWOT ANALYSIS
4. Threats
Late Entry to the Market:
Kiehl's products appeared in Viet Nam in 2015 (Cocoshop, 2020) , which was later than
other beauty brands such as Sulwhasoo (2013) ( Thanh, 2021) and Paula's Choice ( 2014)
(Thu, 2021). Therefore, it is difficult for Kiehl's to compete with other competitors who
already gain customer engagement.

Competitors' High Spending on Advertising

It is a challenge for Kiehl's to stick with the unique marketing choice but not be eclipsed
by other competitors when they probably spend more money on advertising or
campaigns. In the long run, Kiehl's might be unable to keep up with others.

Authenticity
There are many fake Keihl's products in the Vietnam market and with the customers'
desire to buy cheap goods. Therefore, not only Kiehl's reputation, but also customer's
health will be affected badly.

Figure 9 Figure 10
Paula's Choice Vietnam video advertisement The fake version of Kiehl's toner
reaching 1 million views (captured from (capture from facebook.com)
youtube.com)

Page 10
 V. STDP ANALYSIS

1. Segmentation
The targeted segment is Young Adult Women.

Figure 12
Kiehl’s segmentationbased on variables

(*See Appendix D)

Market Size: Approximately 1 million customers in total (potential, first-time and regular).

(*See Appendix E)
Page 11
 V. STDP ANALYSIS
2. Targeting

Kiehl’s has applied the differentiated marketing strategy for targeted segments:
Kiehl’s target customers are single or married females about 23-35 living in
suburbs and commuting into cities for work (Walker, 2019) who have skin
problems or have safe beauty needs. Additionally, these target customers have
enough life experiences and income to get a high-quality product that will
benefit their health/well-being. ( Insight Kiehl's, 2011)
Besides targeting middle to high-income customers, Kiehl's also targets the
customer market with scientific skincare knowledge. (Insight Kiehl's, 2011)

AIO analysis
Activities: Most of Kiehl's consumers are busy, active on social media, and
technology advanced, and prioritize product quality. They tend to compare
brands before purchasing and give feedback after purchasing.

Interest: Millennial women whenever they have a stale income, will start to
focus on improving their living conditions. Regardless of the price, these
customers are willing to pay to seek a high-quality product and good
experience.

Opinion: As experienced customers, they might evaluate whether a product is

good or not based on: brand image, ingredients, reviews, environment-friendly
factors, and perhaps their previous experiences with the brand.

--> As a mid-high-end cosmetics brand, Kiehl's focus on this target customer in

order to build long-term relationship of trust (Ong, 2016). In addition, their
reputation will be spread out more based on the product's quality recognition of
consumers who have enough knowledge and experience.

Page 12
 V. STDP ANALYSIS
3. Differentiation
Product/Service differentiation:
Kiehl's differentiated itself from other skincare companies by emphasizing
natural components obtained from pure roots: squalane, calendula, and lavender
extracts (Kiehl's, n.d). Kiehl’s has also established a brand distinction by
providing customers with medical knowledge through online posts, instant skin
reader, complimentary sample “try before buy”,...

Figure 13 Figure 14
Kiehl’s complimentary samples Kiehl’s Instant Skin Reader
(captured from kiehls.com.vn) (captured from kiehls.com.vn)

Image differentiation:
Kiehl's focuses not only on creating high-value products but also its efforts first
and foremost on the betterment of its local communities by targeting
philanthropic endeavors on the needs and concerns of its citizens. Through the
“Kiehl's Gives” campaign (Kiehl's for the communities), Kiehl's takes an
organizational approach to help local groups solve the three key issues in the
communities: research and advocacy of the AIDS movement, environment, and
children (Kiehl's, n.d).

Figure 15
"Kiehl’s Gives" campaign (captured from kiehls.com.vn)

Page 13
 V. STDP ANALYSIS
Channel differentiation:
In 2021, Kiehl's Vietnam has collaborated with Haravan - Facebook Marketing
Partner to imply a professional chatbot on Messenger, which helps customers
connect to the brand to buy or have more information about the products. This is
also the first Conversational Commerce channel in the area.

Figure 16
Kiehl’s Vietnam x Haravan Chatbot on
Messenger
(captured from advertisingvietnam.com)

Page 14
 V. STDP ANALYSIS

4. Positioning

Figure 17
Positioning Map 1

Product Pricing:
Kiehl’s product prices vary from 500.000 VND to roughly 1.800.000 VND. For
Kiehl’s Calendula Herbal Extract Alcohol-Free Toner 125 ml, the official price is
700.000 VND. This is a relatively high price for the general skincare market. This
also shows the brand's value proposition to be "more for more". One counterpart
that has a nearly similar price to Kiehl’s toner is Paula’s Choice products
(729.000 VND).

Customer Satisfaction:
Kiehl’s ensures that every product is worth its money. This can be reflected by
the mass positive reviews of 96% (coming from over 1000 users) on Lazada.
Specifically, the firm’s best-seller Kiehl's Calendula Herbal Extract Alcohol-Free
Toner 125ml receives nearly 1400 of 5 stars reviews. Furthermore, this product
has been widely acclaimed to be a “legend in the beauty and cosmetic industry”
(ELLE, 2021) with its amazing cleansing effect, oiliness and improving skin's
texture in a short time. At the same time, the brand’s counterpart, Paula’s
Choice, has also consistently ranked in the top ten most favorable cosmetic
brands in Vietnam (ELLE, 2022).

Page 15
 V. STDP ANALYSIS

Figure 18
Positioning Map 2
Natural Derivation:
Kiehl’s promises from day one to commit to naturally derived products to ensure
the best quality and experience for their customer. The brand guaranteed that
“only ingredients that are truly beneficial to the skin are selected, minimal
preservatives are used in our formulations". Happy Skin Vietnam also rated the
Calendula Herbal Extract Alcohol-Free Toner 8.5 out of 10 for its natural
ingredients. In recent years, Cocoon has been one of the brands to take a
“vegan” approach to cosmetic production, using Dak Lak coffee beans, winter
melon, etc.

Packaging Efficiency:
Kiehl’s provides a recycling program where past customers can bring used
packaging to the nearest local store to receive complementary goods in return,
expressing the environmental awareness of the brands. These packages include
plastic bottles, glass bottles, sachets, plastic tubes including caps, etc. will be
then delivered to TerraCycle for recycling. While Paula’s Choice also implies the
same method, the firm does not offer any extra benefits for the customers,
therefore, it is less effective.

Positioning Statement: “To young and affluent women, Kiehl's is the high-end
beauty brand that can specialize customer experiences based on your unique
skin types and meet your demands by taking advantage of our century-old
natural pharmaceutical experience to produce naturally derived products”
(*See appendix F)

Page 16
 VI. MARKETING MIX

1. Product (*See Appendix G)

Three Levels of Product:

a. Core Customer Value:

Customers are looking for a solution to skin problems with a specific approach and
natural ingredients. In this case, the solution is a product that gently cleanses and
restores moisture to the skin after using face wash is suitable for all types of skin,
ranging from oily, dry skin to even acne-prone skin.

Reasons to believe (Kiehl's, n.d.):

1. Calendula extract is known for its anti-inflammatory properties (oleanolic acid,
lupeol, quercetin, etc.) and ability to limit water loss in order to reduce
sensitivity and alleviate irritation for skin.
2. Calendula is rich in natural antioxidants, such as flavonoids, polyphenols, and
carotenoids, thus protecting the skin from the effect of free radicals.
3. Calendula flower extract has numerous skin-friendly oils, including a high
concentration of linoleic and calendic acid, therefore, it helps enhance the
skin's natural moisture barrier and keep it hydrated.

Figure 19
Kiehl’s Calendula Herbal-Extract Alcohol-Free Toner
(captured from herworld.com)

Page 17
 VI. MARKETING MIX

1. Product

Three Levels of Product:

b. Actual Product:

Brand name: Started as a local pharmacy, the brand owner, John Kiehl, has built
the brand identity on the foundation of customer pleasure and satisfaction by
providing an extensive amount of free samples and complementary goods.
Quality level: Kiehl's claims that in seven days, the toner will visibly reduce
redness, oiliness, and pores (Kiehl's, n.d.).

Figure 20
Kiehl’s clinical study
(captured from kiehls.com)

Design: For the Calendula Herbal Extract Alcohol-Free Toner, inside the bottle,
the customers effortlessly notice calendula flowers itself floating, which
reflects the authenticity of the brand’s guaranteed natural derivation.
Features: One thing that makes Kiehl's products different is the natural
ingredients with apothecary roots. Moreover, Kiehl’s products are paraben-free,
fragrance-free, silicone-free, and alcohol-free, thus being safe for everyone,
even pregnant.

Figure 21
Kiehl's calendula flowers
(captured from kiehls.com)

Page 18
 VI. MARKETING MIX

1. Product
Three Levels of Product:
c. Augmented Product:
Delivery and credit: Kiehl’s has clear delivery policies on the official website,
and the customers can easily follow the delivery process.
Product support: Kiehl’s has various channels to support customers including
hotlines, emails, in-store service, etc.

Figure 22
Kiehl's customer service
(captured from kiels.com.vn)

Warranty: There are specific conditions established on the official website

about how we can return the product and receive a refund.
After-sale service: Kiehl's "Recycle & Be Rewarded" where past customers can
bring used packaging to the nearest local store to receive complementary goods
in return.

Figure 23
Kiehl's "Recycle & Be Rewarded"
(captured from kiehls.com.vn)

Page 19
 VI. MARKETING MIX
2. Price
Cost-based pricing
Fixed Cost: - Rent (Stores at big shopping malls, offices in big buildings)
- Marketing cost
- Full-time labour

Figure 24 & 25
Kiehl's Department Stores (captured from facebook.com)

Variable cost: - Natural ingredients.

- Packaging
- Energy (Lightning)
- Part-time labour/KOLs

Value-based pricing:
Kiehl's promises healthier or moister-looking skin by producing high-quality and
multipurpose products stemming from medicinal roots and natural ingredients.

Page 20
 VI. MARKETING MIX
Competitor-based pricing:
In the current state, first-time buyers tend to search on the media: “High-quality
cosmetics with a low price” as guidance on their purchasing decision. As a result,
new customers opt for lower price brands with decent quality and prestige. That
being said, Kiehl's implies several pricing strategies in order to proclaim themselves
as a luxury brand and obtain competitive advantage alongside with other high-end
firms while accepting the risk of competing with their lower-priced counterparts.

This is the reason why Calendula Herbal Extract Alcohol-Free Toner is 700,000 VND
for 125ml, 1,085,000 VND for 250ml, and 1,750,000 for 500ml (Kiehl's Vietnam, n.d.).

In addition, this brand mainly uses psychological pricing strategy and product
bundle pricing. For example, for first-time buyers who prioritize quality, Kiehl's uses
high pricing to position their products as a sign of high quality. Also, Kiehl's offers
price bundling to encourage customers to buy a set of products.

Figure 26 Figure 27
Kiehl's products pricing (captured Kiehl's combo pricing (captured from
from kiehls.com.vn) kiehls.com.vn)

Page 21
 VI. MARKETING MIX

3. Place
Direct approach:
Kiehl's official website serves as a direct communication and sales platform.

Figure 28
Kiehl's Official Website (captured from kiehls.com.vn)

Indirect approach:
Not only does the brand possess seven department stores, located in major
shopping centers in metropolis cities, but they also partner with Lazada which is
one of the largest e-commerce platforms in Vietnam, to distribute products on
the Lazada Mall (the platform's main selling section).

Figure 29 Figure 30
Kiehl's Department Store 1 Kiehl's private section on Lazada Mall (captured
(captured from facebook.com) from lazada.com)

--> Kiehl's main distribution strategy can be identified as a multi-channel

distribution system.

(*See Appendix H)

Page 22
 VI. MARKETING MIX
4. Promotion
Figure 31
Kiehl's Vietnam x Haravan Chatbot Messenger Campaign
(captured from haravan.com)

Mission:
Kiehl's appeared in Viet Nam in 2015, which indicates the introduction stage of the
brand. The primary objective was to approach new customers and build customer
engagement and brand awareness.

Business Strategy Manager of Facebook Vietnam noted that: 62% of Vietnamese

users think that they are familiar with interacting with Chatbot for straightforward
and uncomplicated problems (Haravan, n.d.). This is an opportunity for Kiehl's to
establish the first Conversational Commerce sales channel in the region. Kiehl’s
end-to-end Facebook conversational commerce campaign was not only increasing
sales revenue but also creating new conversations with customers and providing
their customers with a better shopping experience.

Market:
The target audience of this Chatbot Messenger Campaign is young adult women
between the age of 18 to 35 in 4 big cities: Ho Chi Minh, Ha Noi, Da Nang, Can Tho.

Page 23
 VI. MARKETING MIX
4. Promotion
Message:
The message is "Communicate to achieve better," highlights the role that
chatbots can play in improving the flow of commerce between a company and its
clients. In early 2021, within the pandemic lockdown due to COVID-19, this
campaign was launched to utilize the use of Facebook Messenger and medical
knowledge of Kiehl's to build a conversational commerce channel, which
conveniently encourages customers to share their needs and wants to get
personal recommendations from Kiehl's.

Media:
During the implementation process: Kiehl's worked closely with Haravan -
Facebook Marketing Partner to create a Chatbot for Messenger named Mr.Bones
to advise on skin care with customers and manage sales in parallel. Initially
launching Chatbot, the brand used Click-to-Messenger ads so that customers
could click to chat with Mr.Bones.

Measurement:
In fact, Kiehl’s online sales increased by 22% within the first ten weeks after
applying the technology. Besides, advertising profit is 1.8 times higher than its
former figure and the number of conversations in Messenger increased by four
times, compared to its data ten weeks before launching the campaign.
Furthermore, customer interaction and service efficiency also rose by 71%.

Figure 32
Analysis of the achievement of Kiehl's Vietnam x Haravan Chatbot
Messenger Campaign (captured from facebook.com)
Page 24
 VI. MARKETING MIX
4. Promotion
Money:
Based on statistics that this campaign gained 1.8X return on ad spend and 22%
growth on online sales, the money spent on it is calculated to be about 81,000
USD (2 billion VND).

Figure 33
Money for Kiehl's Vietnam x Haravan Chatbot
Messenger Campaign Calculation

Money (in million USD)

Revenue of the skin care market in Vietnam in

554.22
2021

Kiehl's revenue in Vietnam market in 2021 6.8

Kiehl's Vietnam online sales in 2021 0.809

Kiehl's Vietnam sales growth from 2020 to 2021 0.146

0.081
Kiehl's Vietnam advertising spending
(2 billion VND)

(*See Appendix I)

Page 25
 VII. CONCLUSION

Overall, Kiehl's has worked well in terms of building a brand image with a long
history of medical knowledge in producing cosmeceutical products from
99,8% natural ingredients. Moreover, Kiehl's has successfully targeted the
right customers who meet the organization's objectives. Lastly, the brand
succeeds in offering both in-store and online personalized experiences for
customers.

However, the firm still faces challenges in managing promotional illustrations

on the Lazada E-commerce platform, which leads to inconsistent brand
positioning in customers' minds. Furthermore, Kiehl's has yet to create any
game-changing campaign that attracts the mass general public and
specifically the beauty community. Besides, Kiehl's limited distribution
channels are negatively affecting the brand's ability to reach a larger
customer size and manage other intermediaries effectively.

With the current core issue of brand image management, leaders and head
managers ought to execute stricter policies with business partners on brand
image use and declare a consistent concept to immediately ensure the brand
identity in customers' perception and future growth in market share.

Page 26
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Passport, (2021). Skin Care in Vietnam, country report, Euromonitor International.

Euromonitor International Database.

Statista. (2022, November 10). Age structure in Vietnam 2021.

https://www.statista.com/statistics/444599/age-structure-in-vietnam/

Sophie, T. H. (2021, March 15). Đi tìm loại toner tốt nhất vỗ về làn da ngọc ngà phái đẹp.
ELLE. https://www.elle.vn/bi-quyet-khoe-va-dep/nhung-loai-nuoc-hoa-hong-tot

Sophie, T. H. (2022, January 4). Top 10 dược mỹ phẩm được ưa chuộng nhất tại Việt Nam.
ELLE. https://www.elle.vn/beauty/10-duoc-my-pham-duoc-yeu-thich

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dep-cho-phu-nu-4245173.html Page 28
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phục các tín đồ làm đẹp. https://paulaschoice.vn/my-pham-paulas-choice.html

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 IX. APPENDIX
Appendix A: Most popular beauty brands used among female
consumers in Vietnam as of January 2020

Most popular beauty brands used among female

consumers in Vietnam as of January 2020
(Source: Statista)
Page 30
 IX. APPENDIX
Appendix B: A decline in beauty and skincare products spending
in the second half of 2021

(Source: Worldpanel Division)

Page 31
 IX. APPENDIX
Appendix C: Vietnam penetration in online shopping in 2021

(Source: Kantar Worldpanel)

Page 32
 IX. APPENDIX
Appendix D: Kiehl's complete segmentation

(Source: The author owns)

Page 33
 IX. APPENDIX
Appendix E: Kiehl's targetted market size

(Source: Q&Me)

Vietnam Population by age and gender in 2020

(Source: CIA World Factbook)

Page 34
 IX. APPENDIX
Appendix F: Kiehl's Personalized Customer Experience based on
consumer skin type & condition

(Source: Kiehl's)
Page 35
 IX. APPENDIX
Appendix G: Kiehl's Product Mix
• Product mix width: Kiehl’s has around 12 different product lines.
• Product mix length: For each category, Kiehl’s provide choices from 7 to 20
products.
• Product mix depth: For each product, Kiehl’s offers 2 to 3 customizations for each
skin or hair type.
• Consistency: Kiehl’s calendula products are well-linked together (Calendula
cleanser, Calendula toner, mask,…).

Kiehl's Brand Concept

(Source: Keybrand)

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 IX. APPENDIX
Appendix H: Kiehl's Product Assortment and Service Mix
Product Assortment:
Kiehl's product display style resembles a pharmacy by placing their products on
shelves that somewhat replicate a medicine cabinet and even a skeleton wearing
a doctor's blouse. The brand also divides the products into their distinct effect
such as moisturizing, anti-aging, oil control, etc.

(Source: Kiehl's Vietnam Facebook)

Services Mix:
At these stores, the brand also provides a customer services table where consumers
can exchange their personalized skincare routine and receive suitable
recommendation and guidance from the staff. The firm also offers free samples to
engage consumers.

(Source: Kiehl's Vietnam Facebook)

Page 37
 IX. APPENDIX
Appendix I: Kiehl's Vietnam x Haravan Chatbot Messenger
Campaign Money Calculation

Forecast revenue of the skin care

market in Vietnam from 2013 to 2026
(Statista)

Sales channel share of the beauty and personal

care market in Vietnam from 2017 to 2025
(Statista) Page 38