Individual research brief brand gen identity course mkt20019 marketing research and analytics

Executive summary Gen Identity, a Spanish cosmetics company founded in 2022, aims to position itself as an innovative brand among emerging trends by using a natural, sustainable, and veg

INDIVIDUAL RESEARCH BRIEF

Brand: Gen Identity

Course: MK T20019-Marketing Research and Analytics

Lecturer: Mr Jorge Martinez

Student name: Hoang Thi Thanh Mai

Student ID: SWH00617-103809352

Word count: 1723

HCMC-10/2023

Table of contents:

1 Executive summary

2 Background:

1 Internal:

2 External:

3 Marketing Problem and Research Problem

Marketing Problem:

Research Problem:

4, Marketing Question and Research Question:

1 Research Objective 1:

2 Research Objective 2:

3 Research Objective 3:

References List:

Executive summary

Gen Identity, a Spanish cosmetics company founded in 2022, aims to position itself as

an innovative brand among emerging trends by using a natural, sustainable, and vegan approach inspired by Asian beauty rituals (Gen /dentity 2023) Gen Identity wants to

dominate the natural and genocosmetic industry in Spain and beyond The brand

educates and empowers people about skin health and attractiveness and offers

solutions for all skin types and issues (Gen Identity 2023)

Genocosmetics, which applies genetic biology to skincare, is used to create the

company's products The brand claims to utilise advanced ingredients that tackle

genetic elements linked to skin aging, hydration, luminosity, and wellness (Gen

Identity 2023) Gen Identity targeted knowledgeable consumers, especially Spanish

beauty centres and pharmacy customers (Gen /dentity 2023) Due to the pandemic, the corporation had to seize on digital consumption trends and sell its products online

through its website (Gen Identity 2023)

At the moment, China is the brand's biggest market in terms of volume They only sell their products online in China, with 80% of their total volume going through the

Tmall main store with their wholesaler Gen Identity's sales have gone from 82,000€

to 166,000€ in just over a year, and its gross margin has grown from 46% to 74%

Gen Identity has multiple challenges in building its brand in new global markets Even though the company has established a presence in China, it must plan and execute

strategies that effectively communicate and educate consumers on the product's value

and the public's interests in other Asian countries in order to develop an international

brand

Through extensive background study, a formal marketing challenge, and a research

problem

have been identified for Gen Identity:

Marketing Problem: How to successfully develop a brand concept and image In the

Asian region and obtain recognition through advertising efforts and positive word-of-

mouth in order to negotiate deals with distributors and premium centers is the

marketing challenge

Research Problem: Develop a greater understanding of the Asian cosmetics industry,

as well as the consumption and preferences of the general public and premium

segments, as well as the propensity of consumers to try new brands, and their

perceptions of Spanish cosmetics in emerging markets

To investigate and expand upon the marketing problem and research problem, three

research objectives and associated research queries have been developed

1 Research Objective 1: To analyze the current trends and dynamics of the Asian cosmetics industry, including the market size, growth, segmentation, competition, and distribution channels

- How do consumers perceive Spanish cosmetics brands such as Gen Identity in terms of quality, innovation, value, and image?

- What is their source of information and influence?

- What are the main characteristics and drivers of the Asian cosmetics industry, and how do they differ across countries and regions?

- What are the most famous cosmetics brands and the market share

of the cosmetics industry in Asia?

- What are the most famous indirect distribution channels in Asia countries?

2 Research Objective 2:

To understand the consumer behavior and preferences of the general public and premium segments in Asian cosmetics, including their motivation, needs, expectations, and satisfaction

decision, loyalty of the general public, and premium segments?

- What will they expect and desire from an international premium vegan cosmetics brand?

- What are the promotion schemes customers want to have when making a purchase decision such as discounts, or accompanying gifts and vouchers?

- How often do consumers make a purchase? At what times of year will they shop the most?

brand’s physical stores, or online platforms?

- Which are the most popular social media platforms and E- commerce platforms in Asian countries?

3 Research Objective 3:

To identify the opportunities and challenges for Gen Identity to enter and expand in the Asian cosmetics market, and to propose effective marketing strategies and recommendations

- What are the best entry modes and positioning strategies for Gen Identity to attract and retain customers?

- How can Gen Identity launch online marketing strategies that can attract more young customers?

engage with the consumers?

- How much is the average import fee in Asian countries?

Background:

1 Internal:

Gen Identity is a Spanish cosmetics business that was established in 2022 with the

goal of positioning itself as an innovative brand within the cosmetics industry, in

accordance with emerging trends by implementing a natural, sustainable, and vegan

approach, inspired by Asian beauty rituals (Gen Identity 2023)

The company provides a range of products that are developed using genocosmetics, a

scientific approach that applies principles of genetic biology to the field of skincare

The brand asserts its use of sophisticated formulas that specifically target the genetic

factors associated with skin aging, moisture, luminosity, and overall health (Gen

Identity 2023) Furthermore, it purports to facilitate a process of skin re-education,

leading to optimal outcomes within a shortened timeframe (Gen Identity 2023) The

company offers a diverse selection of products designed for both facial and bodily

skincare, with a collection of nutricosmetics that serve as complementary therapies for the skin These products are categorised into three distinct families: solar, hair, and

facial (Gen Identity 2023) Among these families, the face product line 1s considered

the most comprehensive and significant within the range of Gen Identity products

(Gen Identity 2023)

Gen Identity has received positive evaluations from specialists in the field Dr Jaume

Soley, a highly experienced individual with over two decades of service as the

president of the Spanish Industrial Chemists Association and a decade as the CEO of

prominent cosmetic companies, perceives the brand as a transformative force within

the cosmetic business By integrating cutting-edge technologies, the brand aims to

deliver optimal outcomes for skin care (Gen Identity 2023)

Gen Identity’s vision is to become a leader in the natural and genocosmetic sector,

both in Spain and internationally The brand aims to offer solutions for all skin types

and concerns, as well as to educate and empower consumers about their skin health

and beauty

In its early stages, Gen Identity primarily targeted well-informed consumers,

particularly those frequenting specialized beauty centres and pharmacies in Spain

(Gen Identity 2023) Due to COVID-19, the brand started to sell its products online

through its official website and Chinese E-commerce platform because of the ongoing epidemic (Gen Identity 2023) However, Gen Identity is not now accessible in any

major retail chain or department store

The brand is expanding to international markets such as China and has achieved

remarkable achievements Gen Identity also plans to expand to other Asia countries as their cornerstones Despite its significant success in the Chinese market, within the

period of one year after its establishment, and the aim of becoming a global brand,

Gen Identity has several challenges in establishing its brand reputation within the new foreign markets

.Based on this knowledge, Gen Identity has come up with two objectives below:

- Negotiating deals with distributors and premium centers

- Building brand concept and image inside the region and gaining recognition

through advertising efforts and positive word-of-mouth

Along with these objectives, clients also want to discover some questions:

- How to develop a deeper comprehension of the cosmetics industry, as well as

the consumption and preferences of the general public and premium segments,

1n order to better comprehend the customer and devise the most effective

strategy?

- How to better comprehend consumers’ propensity to test new brands and

perceptions of Spanish cosmetics in emerging markets?

2 External:

It is challenging to compare Gen Identity to competitors in the same industry as the

cosmetics industry 1s characterized by its maturity and intense competition, with well- established rivals already enjoying significant brand recognition from loyal customers The market 1s highly segmented; for example, L'Oreal, the largest participant, holds

only about 10% of the global market share It is difficult for Gen Identity to reach a

specific percentage of this enormous market

As a consequence of the ongoing epidemic, the aforementioned company was

compelled to capitalise on emerging patterns in digital consumption and initiate the

online sale of its merchandise via its official website (Gen Identity 2023) According

to Jordi Soley- Gen Identity’s Co-Founder and Business Development, with the

application of online sales, the company has built a foothold in the Asian market,

specifically China Currently, China is the primary market for the volume through the

Tmall flagship store with their distributor In over a year, Gen Identity’s revenue has

significantly grown from 82 000€ to 166.000€ and its gross margin has increased

from 46% to 74%

According to Quoquab, Mohammad, and Shahrin (2020), the rapid growth of the

cosmetics industry in the Asian market has contributed significantly to the success of

the brand The Asia Pacific area has had substantial market expansion, with its worth

surpassing US$70 billion Moreover, there has been a notable shift in the consumption patterns within this particular sector The presence of harmful chemical compounds in conventional cosmetics necessitates a shift towards the purchase of green cosmetics in order to mitigate potential health risks to consumers and minimize the environmental

impact (Ouoquab, Mohammad & Sukari, 2019) The increasing prevalence of Green

Purchase Behaviour (GPB) aligns with the sustainable principles that Gen Identity

aims to communicate to its clients since all of its goods adhere to a natural,

sustainable, and pure approach

Furthermore, according to a study titled "Exploring China Cosmetics Market

Demographics: Age, Gender, And Lifestyle Trends 2023," it has been observed that in industries that cater to femininity, such as cosmetics, the primary catalysts for

development are young females And Asian market is not the exception Most of them are under 40, Millenials, and Gen Z females

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Data: OC&C Strategy Consultants

*People born between 1998 and 2016

According to a study on the demographics of the cosmetics market in China, it has

been observed that a significant portion of Generation Z individuals possess a high

level of digital proficiency and are actively altering their consumption habits In fact, a notable 51% of this demographic see the official social media accounts of consumer

brands as a primary and influential source of information (Exploring China Cosmetics Market Demographics: Age, Gender, And Lifestyle Trends 2023) The use of social

media platforms by these consumers to interact with beauty businesses is evident, as

indicated by a substantial 61% who actively follow or visit such brands on sites like

Weibo and Little Red Book In order to achieve more success in the e-commerce

industry of Asia, especially in China, it is necessary for the brand to employ a greater

range of digital channels with the aim of augmenting its online sales and enhancing its exposure (Exploring China Cosmetics Market Demographics: Age, Gender, And

Lifestyle Trends 2023

In conclusion, following a thorough examination of the external circumstances and a

careful analysis of the internal dynamics, it is evident that Gen Identity should

prioritise research on specific Asian areas These areas include the development of a

robust brand concept and image within the target region, as well as the establishment

of brand recognition through effective advertising strategies and positive word-of-

mouth for negotiating deals with distributors and premium centers Moreover, it is

essential to enhance one's understanding of the consumption patterns and preferences

exhibited by both the general public and the premium groups

3 Marketing Problem and Research Problem

Based on the background analyzed above, it could be summed up that Gen Identity is

aiming to establish agreements with distributors and premium centers in the Asian

market, involves strategically developing a brand idea and fostering awareness as an

innovative brand that incorporates modern technology to provide natural, sustainable,

and vegan products Furthermore, the internal and external research on the brand and

Asian young female consumers’ behaviors in purchasing cosmetics products have

shown that the brand should engage more with these customers, and which medium

should the brand develop in order to raise brand recognition and achieve the final

objective

To figure out what changes need to be made, this information needs to be used to

create a clear marketing problem that leads to more research into these areas This will

be done by creating a clear research problem that looks at these specific areas of

focus

Marketing Problem:

How to successfully build a brand concept and image inside the Asian region and gain

recognition through advertising efforts and positive word-of-mouth in order to negotiate deals with distributors and premium centers?

Research Problem:

Develop a deeper comprehension of the Asian cosmetics industry, as well as the consumption and preferences of the general public and premium segments, and better comprehension of

consumers’ propensity to test new brands and perceptions of Spanish cosmetics in emerging

markets