How FMI Leveraged Youth Festivals to Expand a Skincare Brand’s Loyal Customer Base
Retail and Consumer Products
FMI’s recent client, a globally popular skincare brand, is a leading player in the personal care industry. This industry is becoming more and more competitive as more skincare brands are entering the landscape to capitalize on the growing consumer needs vis-à-vis skin care regimes. However, despite intensified competition in the personal care industry, consumer loyalty has helped the most popular brands to sustain the competition. The client’s core customer base includes the millennial population aged around 21-37. The brand was struggling with building a new customer base all over again every time a particular group of millennials grows up and falls out of the client’s target group. Also, with constantly changing trends in the personal care industry and skincare regimes, the company was grappling with retaining the attention of its target customers. The client needed to devise innovative strategies and ways to reach customers with better interactions with them about the company’s core values, in order to retain a loyal customer base for years to come.
Leading manufacturers and distributors in the personal care industry have been tracking the latest and hottest beauty trends that are popular among the millennial population. As young adult customers create the largest end-user group for skincare product manufacturers, the dynamics of health regimes and changing personal care trends have a significant impact on manufacturers’ strategies. Consumers are becoming more curious about the chemical ingredients and negative health impacts of skincare products, which is another factor that influences manufacturers’ strategies in the personal care industry. Constantly changing beauty trends and a burgeoning number of skincare brands entering the personal care industry are creating significant challenges for existing players. Nevertheless, incorporating efficient marketing strategies and establishing effective communication with customers, especially from the millennial population, can help leading brands to not only retain but also expand their loyal customer base.
As traditional ways of marketing new skincare products and promoting their benefits do not suffice the increased needs for effective marketing, FMI devised a new strategic plan for the client. FMI suggested that the company should explore innovative ways to reach out to its target customer group, rather than featuring new products only through its website. The prevailing quest for style as well as safety of using skincare products could remain the fundamentals of the client’s new business strategies. FMI proposed that brand immersion marketing strategies can help the company in improving its target customers’ experience with the brand. Thereby, engagement marketing campaigns through various youth festivals can help the brand dive right into the millennial group’s mindset, and enhance their experience with the product, ultimately expanding the client’s loyal customer base.
The client collaborated with a leading media company and also established partnerships with other customer-relevant media to sponsor various youth fests and music events. Referring to the statistics on FMI’s recent survey on the impact of celebrity marketing in the personal care industry, the company also collaborated with social media influencers, bloggers, and vloggers to promote its products at these music events. Organizing youth festivals, carnivals, and music festivals has helped this skincare brand to significantly improve its presence beyond these events, and reach millennials not only with its products but also with the company’s core values.