Key points for formulating product positioning strategies for cosmetics OEM
Target market segmentation
Geographical factors: Take into account the differences in climate, culture and consumption habits among different regions. For instance, in regions with a dry climate, consumers may prefer cosmetics with strong moisturizing effects. In regions with a humid climate, oil-control and refreshing products may be more popular.
Demographic factors: Market segmentation based on age, gender, income, occupation, etc. Young consumers may be more in pursuit of fashionable and personalized products, and be interested in the novel colors and unique packaging of cosmetics. Mature consumers, on the other hand, may pay more attention to the efficacy and quality of skin care products and be willing to pay a higher price for high-end products with anti-wrinkle and repair functions.
Psychological factors: Analyze consumers' lifestyles, values, personality traits, etc. Consumers who pay attention to environmental protection may prefer cosmetics that use natural organic ingredients and environmentally friendly packaging. Consumers who pursue fashion trends may be more likely to be attracted by products endorsed by celebrities or those co-branded with popular ips.
Behavioral factors: Segment based on consumers' purchase frequency, brand loyalty, usage scenarios, etc. Consumers who frequently purchase cosmetics may be more interested in new products and have relatively lower brand loyalty. Consumers who only use cosmetics on specific occasions (such as weddings and important gatherings) may pay more attention to the immediate effects of the products and the brand image.
Competitor analysis
Identify the main competitors: Find out the enterprises and brands that have direct or indirect competitive relationships with your products in the target market. Screening can be conducted through channels such as market research, industry reports, and sales data from e-commerce platforms.
Analyze the features of competitors' products: including aspects such as product efficacy, ingredients, packaging, and price. Understand the strengths and weaknesses of competitors' products in order to find differentiated competitive points. For instance, if the products of competitors generally focus on basic skin care functions, then it can be considered to develop products with special functions (such as acne removal, whitening and fading spots).
Study competitors' marketing strategies: Analyze competitors' advertising campaigns, promotional activities, channel layouts and other marketing methods. Learn from its successful experience while avoiding direct conflicts with competitors in marketing strategies and seeking differentiated marketing approaches.
Efficacy positioning
Determine the main functions: Based on the results of market research and consumer demands, determine the main skin problems that the product aims to solve or the main beauty needs it meets. For instance, for people with sensitive skin, it focuses on soothing and repairing effects. For consumers with anti-wrinkle needs, the anti-aging and firming effects of the product are emphasized.
Efficacy verification and dissemination: Verify the efficacy of the product through professional laboratory testing, clinical trials and other methods, and accurately and objectively convey it to consumers in product promotion. Avoid exaggerating the efficacy to prevent consumer distrust and penalties from regulatory authorities.
Component localization
Select featured ingredients: Choose ingredients with unique efficacy or market popularity, such as natural plant extracts, bioactive peptides, hyaluronic acid, etc. Highlight the advantages and safety of the ingredients to attract consumers who pay attention to the ingredients.
Ingredient story creation: Endow the product ingredients with a story to enhance the product's appeal and cultural connotation. For instance, by describing the origin, growth environment, and traditional medicinal value of a certain plant component, it is easier for consumers to generate emotional resonance.
Emotional positioning
Endow products with emotional value: Associate products with certain emotions, lifestyles or values to meet consumers' emotional needs. For instance, create a makeup product that emphasizes "the beauty of confidence", allowing consumers to feel confident and charming when using the product.
Create a brand atmosphere: Through brand image design, advertising promotion, offline activities and other means, create a brand atmosphere that is consistent with the emotional positioning of the product. For instance, using warm and romantic tones and images to promote a skin care product targeted at female consumers conveys the emotions of care and protection.
Customer profile depiction
Basic characteristics: including age, gender, occupation, income, educational level, etc. For instance, the target customer group might be urban white-collar women aged 25 to 35, with above-average income and higher education.
Consumer behavior: Understand the customer's purchase frequency, purchase channels, brand preferences, price sensitivity, etc. For instance, this group of customers may be more inclined to purchase cosmetics on e-commerce platforms, pay attention to brand reputation, have a certain sensitivity to prices, but be willing to pay reasonable prices for high-quality products.
Psychological needs: Analyze the client's beauty needs, lifestyle, values, etc. For instance, they might pursue fashion and pay attention to their personal image, hoping to showcase their personality and taste by using cosmetics.
Customer demand mining
Market research: Through methods such as questionnaires, interviews, and focus groups, gain a deep understanding of the demands and expectations of the target customer group for cosmetics. For example, ask them for their opinions and suggestions on aspects such as the product's efficacy, ingredients, packaging, and usage experience.
Social media monitoring: Pay attention to the discussions and feedback of the target customer group on social media to understand their concerns and pain points regarding cosmetics. Adjust the product positioning and marketing strategies in a timely manner to meet the needs of customers.
Cost-oriented pricing
Calculate production costs: including raw material costs, production and processing costs, packaging costs, transportation costs, etc. Ensure that the product price can cover the production cost and obtain a certain profit margin.
Consider the scale effect: As the production scale expands, the production cost per unit of product may decrease. When setting prices, it is necessary to fully consider the future production scale and market sales expectations, and reasonably determine the price level.
Competition-oriented pricing
Refer to competitors' prices: Analyze the price levels of similar products from competitors, and based on the strengths and weaknesses of your own products, set competitive prices. If the product has unique functions or ingredients, the price can be relatively high. If the product is similar to that of competitors, the price can be maintained at a similar level or slightly lower.
Price differentiation strategy: Avoid direct price competition through product differentiation. For instance, offering better after-sales service and personalized product customization, etc., makes consumers willing to pay a higher price for the products.
Demand-oriented pricing
Evaluate consumer value perception: Understand the target customer group's recognition and acceptance of product value. If consumers believe that a product has a high value and can meet their needs, they may be willing to purchase it even if the price is high.
Adopting psychological pricing strategies, such as tail number pricing (setting the price at 9.9 yuan instead of 10 yuan) and integer pricing (for high-end products, using integer prices to reflect quality and grade), etc., influences consumers' purchasing decisions.
Online channel
E-commerce platforms: Select e-commerce platforms suitable for cosmetics sales, such as Taobao, JD.com, Pinduoduo, etc. Based on the characteristics of the platform and the user group, formulate corresponding marketing strategies and product promotion plans.
Social media platforms: Utilize social media platforms such as wechat, Weibo, Douyin, and Xiaohongshu for product promotion and sales. By collaborating with Internet celebrities and bloggers, we carry out live-streaming sales, content marketing and other activities to enhance the popularity and sales of our products.
Brand official website: Establish your own brand official website to showcase product information, brand image and corporate culture. Provide an online purchasing function to facilitate consumers' direct purchase of products. At the same time, collect consumers' information and feedback to provide a basis for subsequent marketing and product improvement.
Offline channel
Cosmetics specialty store: Cooperate with well-known cosmetics specialty stores to distribute products to their physical stores for sale. By leveraging the brand image and sales network of the specialty stores, increase the exposure and sales volume of the products.
Department store: Set up special counters or zones in department stores to display and sell products. Department stores usually have a high flow of people and purchasing power, which can enhance the brand image and market position of products.
Beauty salons and SPA clubs: Cooperate with beauty salons, SPA clubs, etc., and recommend products to consumers as part of professional care programs. Through the recommendations and usage guidance of professional beauticians, increase consumers' trust in the product and their willingness to purchase.
Brand name and logo design
Brand name: Choose a brand name that is simple, easy to remember, rich in connotation and in line with the product positioning. The brand name should be able to convey the core value and features of the product, while avoiding being similar to the brand names of competitors.
Logo design: Design a unique and eye-catching brand logo to enable consumers to quickly recognize and remember the brand. The color, shape and pattern of the logo should be in harmony with the brand image and product positioning.
Brand slogan and communication language
Brand slogan: Distill a concise and powerful brand slogan to summarize the core values and concepts of the brand. The brand slogan should be able to resonate with consumers and stimulate their desire to purchase.
Communication language: Develop corresponding communication language based on different marketing scenarios and target audiences. The communication language should highlight the features and advantages of the product to attract consumers' attention.
Brand culture shaping
Value transmission: Clearly define the brand's values, such as environmental protection, health, and innovation, and convey them to consumers through various channels. Enable consumers to identify with the brand's values while purchasing products.
Brand storytelling: Create an engaging brand story that tells the origin, development history and mission of the brand. Brand stories can enhance the emotional value and cultural connotation of a brand, making it easier for consumers to develop brand loyalty.
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