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Kiehl's Case Write-Up

In: Business and Management

Submitted By capkorn88
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Kiehl’s Case Write-Up

1. Evaluate Kiehl’s current “go-to-market” strategy. What’s working? What isn’t? What is the role of each of their ways of reaching end users?

What’s working? * Excellent service is provided through highly trained sales * Multiple potential touch-points with consumers (albeit limited overall) * Clear vision and objectives for the brand

What’s not working? * Too inaccessible * Lack of awareness due to no advertising mindset

Role of distribution methods * Free standing stores (48% of sales): develop and showcase how the personal consultation model works with the KCRs, full ownership * Retail partners (42% of sales): increase traffic and sales * Website (10% of sales): build awareness and knowledge of the brand in a disconnected fashion, increase sales

2. In 2000, when L’Oreal acquired Kiehl’s, it had just one Free Standing Store, its “flagship store” selling about $5M per year. L’Oreal has since increased FSS’s to 52. Does that make sense? How would the “retail partners” feel about this?

* Yes - allows Kiehl’s to own the entire consumer experience while ensuring their “Circle of Service” is adhered to. * No – large capital investments with more risk than using retail partners, not broad enough product line to support having a fully dedicated store * Retail partners probably don’t love the idea, but many people probably don’t go to Nordstrom’s just for Kiehl’s, so it may produce cross sales for them on higher margin products

3. What role has e-commerce played in the Kiehl’s strategy so far? What role would you recommend it play over the next five years as Kiehl’s pursues it goals?

* Hub that provides extensive information about all elements in the extensive Kiehl’s product line * Source of some “advertising” by purchasing key words * Helped build awareness...

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