Market research final bmo

Market ResearchOlivia Llagostera, Maria Eugenia Errobidarte, Barbara van Stigt

Tuesday, 2 February 2010

A store offering:- Pharmacy (general health such as antibiotics sold only on description and vaccines)

- General Health (creams, plasters, diet products). Products for general health.

- Beauty products ranging from: hair, skin, make up, as well as accessories such as hair bands, some basic earrings.

- A small range of fresh products such as drinks, snacks and some vegetables

- Offering good quality versus price products such as L’oreal for makeup

Alkimia


This type of store is a common concept in Northern European countries such as Britain

and the Netherlands.

They are commonly referred to as: drugstore

Alkimia


TARGETDemographic:

• Age: 25+• Gender: Female• Income status: Middle income• Occupation: Housewives and working women

Psychographic:• Personality: Cares about her personal aspect, likes looking good.• Lifestyle: Has a busy lifestyle, looking after their children, their job.• Interests: Fashion, gossip, magazines and films.


TARGETTechno graphics:

• Motivations: a women who is looking for a shop were she can find all the products sheneeds in one place - no time wasting.

Shopping Preferences:• Shopping Areas: Areas where they can usually find a mix of shops which adapts to their needs,in other words, street where they have a supermarket, a pharmacy and a cosmetic shop or multi brand stores.• Example Stores: Caprabo, Sephora, El Corte Inglés.• Brand Loyalty: Yes• Store Loyalty: Yes


TARGETDemographic:

• Age: 17-24• Gender: Female and Male• Income status: Low - Middle income• Occupation: Students

Psychographic:• Personality: Active, enjoys being with friends, having drinks, going out at night• Interests: Books, Cinema, Night clubs, Music


TARGETTechno graphics:

• Motivations: Looking for a shop, where they can find all products they need at an affordable price

Shopping Preferences:• Shopping Areas: Areas where they can usually find a mix of shops which adapts to their needs,They would however, shop at any place which comes in andy at any time• Example Stores: Caprabo, Dia, Mercadona, Sephora, Douglas, El Corte Inglés• Brand Loyalty: To Some products such as hair shampoo.• Store Loyalty: No


SWOT AnalysisStrength

- Easy access to all product- Wide Target- Affordable- Persuasive- Extra Services

Weaknesses- Unknown concept- Spain a stable market with no inventions.- New Brand- People in Spain are very loyal to their brands and shops

Opportunities- Non existent in Spain- Many students in cities - Offer many services in 1 place

Threats- Pharmacies copying the concept- Easy to adapt for other companies- Legal problems due to the fact that it is unknown in Spain.


Competitors

Health:- Local Pharmacies- El Corte Ingles

Beauty:- El Corte Ingles - Supermarket- Cosmetic Stores such as Gala- Bodyshop- Sephora


Competitors


Quantitative ResearchAge

15-18 19-21 22-25 26+

9.80%

43.90%31.70%

14.60%

Survey


Quantitative Research

78.00%

22.00%

Female Male

Gender

Survey



17.45%

22.20%

31.77%

28.58%

SupermarketEl Corte InglesSephoraCosmetic Shop

Where do you Buy Beauty Products?

Survey



56.10%43.90%

YesNo

Do you travel to buy Beauty products?

“Well, I can travel but not only for the purpose of buying products, then I do it in association with another errand “ Eva -29“Within, walking distance”

Hans - 22

“To where the product I want is available and cheapest” Ana - 20

Survey



7.30% 92.70%

No, I go to a specific oneYes, I use to the closest pharmacy to my house

Do you use your Local Pharmacy?

Survey

“It really depends where I am and the moment of need” Maria - 26

“I usually use the closest one to my house because range doesn’t vary” Laura - 23



9.80%2.40%

43.90%

31.70%

12.20%

Once a WeekTwice A WeekTwice A MonthOnce A MonthRarely

How Often Do you Buy Beauty Products?

Survey



24.40%39.00%

24.40%

7.30%

4.90%

0-20€ 21-50€51-75€ 76-100€101+ €

How Much Do You Spend on Beauty Products a Month?

Survey



24.40%

75.60%

Yes No

Do you always buy Beauty products at the same store?

Survey

“Not really, I can never find a beauty shop that offers all the products I need” Cristina - 36



92.70%

7.30%

YesNo

Would You Find a Store Selling, Beauty, Health and Pharmacy Products Convenient?

Survey

“Yes, it’s annoying how you have to go to different stores to find what you need” Cris - 25

“Not really, I like walking around when I do my shopping” Sophie 26

“Yes, as long as they offer cheap products and they are easy to find, I hate confused staff” Robert 19



53.70%

34.10%

12.20%

Yes, Walking DistanceYes, Distance is not importantNo

Would you travel to this store?

Survey


Interview

http://www.youtube.com/watch?v=vKb4B1xjklgTuesday, 2 February 2010

http://www.youtube.com/watch?v=vKb4B1xjklg

http://www.youtube.com/watch?v=vKb4B1xjklg

Qualitative ResearchWe wanted to find out if:

-People will be loyal to our store?

-Spain is ready for this type of store?

-Do Spanish people see the gap that we see?

-Do they mind traveling to El Corte Ingles to find an extensive range of beauty products?

-Are they interested in buying all products in one place?

-Do they know boots in the UK?

-What do they think about boots?


Focus Group“It is a hassle to buy all your products in different stores”

– Greg

“When buying make up and beauty products, it is confusing and annoying to have to travel around Barcelona to find the right store selling a specific product”

- Romina

“I usually buy my products in El Corte Ingles, but the price is high and the service isn’t too good…”

- John

“I usually don’t care where I buy my health products. I buy general things in Caprabo and medicines at the pharmacy just by my house”

- Marina

“I like Sephora since you have a large range of products and the service is nice. Although it is quite far – since I live in Sarria – I always find what I need and it is worth going there”

- Caley

“My local Caprabo, never has the whole range of the shampoo brand I use (Elvive), I hate it and always have to go to different ones to find it”

- Laura


Results

- Confusion in El Corte Ingles

- El Corte Ingles seen as “Expensive”

- People seem to be fed up with their shopping experience

- Disappointing Shop Experiences


CONCEPTS

Location PriceEasy of Finding Products /service

Instead of 1 location with huge range

1 main store in the centre --> Also focus on others throughout the city?

Instead of many different brands

Also concentrate of “own brand” Products - at a low price?

Service - Easy to find productsGood layout of store


CONCEPTS1. Concentrate on 1 location, but have a goal to open 5 other stores within 1 year in central areas in:- Eixample- Borne- Gracia- Sant Gervasi- Raval

3. Offer a wide range of “own brand” products:- Hair products (1-7€)- Make Up (3-15€)- Skin Care products (1-7€)- Basic health care such as plasters and aspirine.- Vitamins and herbs.

2. Create five sections:- Women Beauty (Skin Care, Hair Care, Make-Up)- Men (Skin Care, Hair Care)- General shower gel area- Pharmacy- Health


Quantitative ResearchSurvey

58%

42%

LocationPrice

People who answered

Price above Location

were mainly under the age of 30


Quantitative ResearchSurvey

14%

9%

35%

12%

16%

14%

BorneRavalEixampleSant GervasiGraciaOther

EixampleGracia Borne 1 main store in

Eixample might not be enough

to cover the big area of the

Eixample?


Positioning+ Location

- Location

- Pro

du

ct R

ang

e + Prod

uct R

ang

e

Sephora

El Corte Ingles

Supermarket

The Body Shop

Cosmetic ShopAlkimia


Positioning+ Price

- Price

- Lo

cati

on + Lo

cation

Sephora

El Corte Ingles

Supermarket

The Body Shop

Cosmetic Shop

Alkimia


Communication Plan

1. Opening Weeks-Sample Alikimia Package-Buy One Get One at Half Price- Flyers around the area of the store advising people about the launch

3. Website- Launched a few days before the store- Main concentration is the own line- Use your client account to buy products online and deliver them to your home.- All Beauty and Health products are available online.- Videos of the making process of the Alkimia products.- Blog with weekly updates on new products.- Competition on packaging /advertisement for a new product when won you receive a beauty arrangement with an affiliate beauty resort.- Online Catalogue

2. Client Account- Receive benefits such as discounts and special offers- Updates- Free delivery at home- When bought a certain amount receive a free product


Conclusion

Our goal is create a convenient store for all health related products.

-After the survey we found out that it was important to concentrate on other areas of Barcelona.

- We will have 1 main store in the centre of Barcelona (Eixample) and open 5 other stores in important neighborhoods within 1 year.

- Apart from location, we also realized price is important, since young people are really moved by this factor.

- By introducing our own line we can offer low price, high quality products.

- We decided to also create an e-shop, this will help us cover the whole of Barcelona and make the experience more convenient.

CONCEPTS:LOCATIONPRICE (Alkaina Products)


Market research final bmo

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