Kiehl’s
Project: While search for topics, our research showed that a growing number of American consumers are having concerns about the implications of aging on their skin and are increasingly opting for products with anti-aging or age defying features. With this in mind, the team decided to explore sustainable solutions for the brand Kiehl’s- a skincare line, including anti aging products, and marketed heavily towards men. Additionally, with its strong market presence, it attracts “ older young adults”. Additionally, L’Oréal, Kiehl’s parent company, is the leading player in the United States skincare market, generating 12.7% share of the market’s value- a footprint large enough to generate impact as a model of best sustainable practices in the skincare industry.
Contribution: Secondary research, Primary research, developing the concept, data analysis and constant iteration of bringing the problem solution spaces to overlap.
Contributors: Cosette Saliba, Irene Kearney, Siddhant Patel, Zoha Amjad
Year: 2018
AUUDIO
This tools helps companies “ listen to their business, up and down the value chain, for issues and opportunities. It starts with a grid of the 10 key challenges that we have identified in on axis, and five categories on the other: Aspects, Upstream, Users, Downstream, Issues and Opportunities.” - Green to Gold ( Etsy & Winston, 2006)
Value Proposition
Our research revealed the following jobs that fall under skincare users: caring for skin on the go or at home, finding a trusted skincare line, finding and reading customer reviews and product packaging information, recycling or disposing of product after use. The following pains were also revealed: finding products for unique skin conditions, exercising environmental consciousness at time of purchase, researching brands and specific product ingredients, testing products, finding a convenient place to shop, an finding reasonably priced items.
In response to customer needs, Kiehl’s provides the following products and services: products with natural ingredients, products backed by science, expertly customized skincare solutions, a “ try before you buy” program, a “recycle and reward” program, and limited edition product collaborations. To alleviate consumer’s pain Kiehl’s has developed a strong omnipresence, sells luxury products at moderate price, grown programs to incentivize recycling and which allows customers to try product before purchase.
Stakeholders Map
Stakeholder mapping is a key component to a sustainability business strategy. This stakeholder mapping in largely geared towards an organization identifying new source of business value, especially product innovation to benefit both the organization and planet. For this project, we focused on the collaboration quadrant of the stakeholder map. In order to build trust with their customers, employees and natural ingredients provider, collaboration with Notional park and National Geographic society was considered in order to spread the transparency of their product.
sswot
The sustainability swot (sSWOT) is designed to help drive action and collaboration on environmental challenges creating real business risks and opportunities. It helps individuals engage and motivate challenges, particularly those with limited knowledge of environmental issues or corporate sustainability. The team organized the sSWOT by the environmental challenges derived from the AUUDIO analysis: loss of biodiversity, resources and energy scarcity, climate change, new technology (traditional methods), shifting politics and policies, shifting consumer demographics and population, inflation and market crass, emerging markets, commitment to global citizenship.
Some of our key findings for Kiehl’s brand included:
Strengths: boasts multichannel collaboration with influencers, public perception as a natural apothecary, organizes regular events and visible fundraising charity. Weaknesses: reputations as a green washing organization, no infrastructure for transparency technically compliant, but not proactive. Opportunity: to find local sources and materials, to explore more customization options to meet needs for diverse users, to provide education opportunity for vulnerable stakeholders and luxury consumers, increasing compliance and transparency with sustainable initiative to boost wealth and reputation. Threats: increased priced raw materials and higher production cost, decrease in availability of natural materials, rising consumer consciousness and demand for transparency.
The top level of the sSWOT pyramid, provides the opportunity to begin the brainstorming on near, short, and long term solutions for the brand. The near term: an app that promotes transparency and provides information for the users. Short term: traditionally cosmetic days, celebrating ancient practices, collaboration with competitors, partner companies, and NGOs- specifically the US national parks service to promote sustainability, a green house pop-up. Long term: LEAD and or cradle to cradle certification, sharing natural resources with other organizations, Kiehl’s incubator, attracting different startups in emerging markets.
Blue Ocean strategy
We compared Kiehl’s with its competitors Clinique and L’Occitane en Provence. Based on our research on all three organizations, we came to conclusion that Kiehl’s need to increase the amount and quantity of natural resources in products and focuses more on ethical practices compared to its competitors.