to discover a new product in some way,
either through purchase or free sampling.”
Direct mail makes up 80 percent of
Yves Rocher’s direct marketing budget,
with the balance going to Internet media.
Also, in the process of recruiting new
customers, the company is using inserts
in sources that proved successful in the
past. “E-marketing remains a significant
portion of our sales,” says Moffatt. “The
advantage that it brings us is the opportunity to cost effectively touch a new pool
of potential customers.”
Moffatt also pointed toward the significance of making sure that every piece
of copy is targeted. “That’s probably the
biggest mistake most new mailers make
— forgetting that the customer is who is
important, not the product being offered,”
he says. “We’ve had great success in the
past two years in returning Yves Rocher
in North America to being a great mailer.
This was done by investing in a good catalogue and strong direct marketing pieces,
as well as through techniques to involve
the customer in the communication.”
For example, Yves Rocher successfully
launched its new Iris Noir perfume in
2008. To support the launch, the company mailed a separate flyer explaining
the perfume and included a scent strip.
“This is important when dealing with
catalogue customers, as a perfume is hard
to sell when the customer can’t discover
the fragrance themselves,” says
grance customers were given the chance
to preview the perfume a few months
prior to the launch at an exclusive price.
And during the actual launch, customers
were rewarded for a fragrance purchase
with a pearl bracelet.
While E-commerce contributes to a
large number of overall sales for many
beauty and personal care companies, for
some, like Beauty Encounter, all sales are
done online. CEO and founder Jacquelyn
Tran took her family’s wholesale beauty
retail company and, in 1999, transferred
the fragrance distributor online. Seeing
the potential of the Internet as a sales
tool, she created a retail Web site and
started adding other product categories including cosmetics, haircare and skincare.
Today, Beauty Encounter hosts more than
1,000 unique brands with an array of international and specialty products.
As an online retailer, the company
faces a physical challenge. “The largest
challenge we face is bringing the beauty
counter experience of being able to smell,
touch and test to the online world,” says
Reilly. “We work hard to provide detailed
descriptions and photos to help customers
determine if a particular scent or color is
right for them.”
But according to Reilly, the advantages of being an online retailer outweigh
the disadvantages. “The largest advantage
is the convenience of shopping whenever
you want — we don’t close,” she
com- ments. “
Addi-tion- ally, we are
able to attract
customers from all over the world and
offer more than 30,000 products.”
More than half of the marketing
budget goes straight to direct initiatives,
the Web being the most used channel followed by E-mail. Therefore, the marketing team offers unique spots on the Web
site for beauty tips, trends and techniques.
In addition, the company’s blog allows
customers to comment on products and
make recommendations to one another.
Beyond the blog and reviews, Beauty
Encounter has Facebook and Twitter
pages, and recently launched a You Tube
channel. During the next year, the company will evolve its social media platforms
while also exploring mobile marketing.
“We want to bring the same great shopping experience customers find on the
Web to mobile phones,” says Reilly.
Glamorous on Any Budget
Beauty sells, even in a recession.
Women may cut back on apparel, but
they will not compromise beauty regimens. According to the U.S. Department
of Commerce, despite falling retail sales
figures, beauty and personal care products
saw holiday sales rise 5. 7 percent to $20.9
billion in 2008, when compared with December 2007 data. Retail giant Procter &
Gamble (P&G) showed net sales growth
for the seventh consecutive year, with a
large part of that attributable to beauty
— 33 percent of 2008 net sales, totaling
Moffatt believes the economy could
help, not hurt Yves Rocher. “We will
benefit from the difficulties in the marketplace. Women still want to look and
feel beautiful and with our global production capabilities, this helps us keep prices
at a very competitive level,” says Moffatt.
However, despite the success of beauty
products in a down economy, customers will are still looking for more ways to
save money, such as buying drugstore or
budget-friendly brands. “Everyone wants
to look and feel like a movie star for less,”
says Beauty Encounter’s Reilly. “People
are tightening their wallets, but still want
to smell and look good.”
The company is making sure to adjust