Camille de La Celle, Johanna Davidsson, Isabel Loder Ilaria Manzi, Vera Dresen
Retail concept 1 2 3 4 5 6 7 8 Experience Products Services In between a pharmacy and Natural, healthy & organic Natural and free tips like in a � Natural and free tips like in a a grocery store products pharmacy pharmacy One-stop alternative 3 categories: Pre-packed products with Pre-packed products with � shopping destination - Functional food (FOSHU) recipes inspired by recipes inspired by - Cosmetics Grandmas Herbalist's shops inspired Grandmas - Household Care 2
Market trends 1 2 3 4 5 6 7 8 “All Natural” Health Green Household Nutricosmetic Remedies Care Products Household care products have become French unders 30s showed a Nutricosmetics are ingestible beauty more eco-friendly in recent years, as a strong preference for the All products – food, drink and supplements – result of government regulations and natural products. that have been developed to promote consumer scepticism regarding the harmful ingredients used in many household care healthy skin, nails and hair. The worldwide demand for products (chlorine bleach and insecticides) Natural remedies is increasing especially for NH beverages (Coconut water, Green tea, 100% Global French sales of Nutricosmetics in Many household care products are now juice...) 2011 were > 200US$ phosphate-free, and use more natural "active" ingredients, such as oxygen and Green tea 26,4% growth orange oil. The next biggest market is France . The Bottled water 44.5% growth channel accounted for a Value Share of 100% juice 9,9% growth The trend towards eco friendly home 67% in 2010. Consumers have become NH products 34,8% growth cleaning products is at its most accustomed to seeing beauty supplements FF products 43,1% growth pronounced in North America and Western when making their normal beauty Organic Products 35,3% growth Europe, evidenced by the growth in share purchases. and revenue of green brands 3
SWOT analysis 1 2 3 4 5 6 7 8 Strengths Weaknesses Premium price ● Premium quality products ● Localization ● Organic products’ high costs ● “Feeling at home” store experience ● People skepticism especially towards natural ● Home made remedies receipt ● household cleaning products. Threats Opportunities SWOT Government welfare program 1 ● Growing demand for Organic and Natural Multi-market competitors (NHs, ● ● health products Nutricosmetic and Eco-friendly cleaning products’ companies) Women under 30s are more likely to seek ● for “all natural” product 4
Target 1 2 3 4 5 6 7 8 Amount of people responding to the consumer profile: Marie in France: 1 635 660 Consumer Profile in Lyon: 101 396 35 years old’s designer Wife, Leo’s mother and currently pregnant Middle aged professionals (25-40) - educated & Wants to support local business active Lise Middle to high income (around 38 000 €), willing Tries to avoid synthetic medicines to pay a premium price for quality products Recreational shopper Mainly Women 28 years old’s consultant Likes to identify what she needs Living in urban areas Health Conscious Healthy lifestyle Looking for the experience Works more than 60 hours/week Busy lifestyles, mainly looking for ready made products Lives in the city center Average basket: 5 products Laundry cleaning ● Suffers from sleeping & stress troubles Detergent ● Functional shopper Top Priorities Daycream ● Something for the child against ● Average basket: 2 products (price TBD) cold Flavor / Taste ● Sleeping tea Morning sickness ● Healthfulness Relaxing facial mask ● Nutrition Food Safety 5 Ease of preparation
Positioning 1 2 3 4 5 6 7 8 In between a pharmacy and a grocery store Selling natural products exclusively Premium price segment 5 Core values : Essence Hearth Earth Whole Being Ethics helping to taking care of caring about Socially balance between back to basics family and home environmental responsible body, mind and issues soul 6
Offer Definition 1 2 3 4 5 6 7 8 Product categories The shop address all common pains offering natural and healthy Cold Stomach Relaxing treatments by revisiting grandma's’ Prevent & fight Digestion & remedies made of edible ingredients Reduce stress, against flu, transit Improve sleep coughing, sore Intestine Increase well- throat Nausea being Additionally, a small assortment of: DIY natural cosmetics Seasonal Category DIY cleaning products Pour Elle Pain Relief & WINTER SUMMER Painful period Headache essential tools Water infection Joints vitamins mosquito for customers who want to make Pregnancy dry lips bites their own recipes at home. related Pain sunburns 7
Offer Definition 1 2 3 4 5 6 7 8 Example of product recipes DIY Products All ingredients are: Natural cough syrup Homemade Washing Honey Mask Fresh and local � powder Contains: Provided by our organic � supplier 150g Savon de Marseille 1 teaspoon of honey 3 squeezed lemons, Assembled with great care � 75 ml Bicarbonate of Soda 1 teaspoon of rye flour in-store (kitchen) → No ½ teaspoon of essential oils 250 grams of raw honey, waste 1 teaspoon of olive oil (choose your favourite) 1 egg 60 ml of olive oil Apply 10’ on a clean face & How to use: boil 3L of water, and Keep in the fridge, up to 3 months. relax mix the ingredients. Children: 3 teaspoons a day. → Give advice on how to make your own products at home! Adults: 2 tablespoons a day. → Adapt to customers’ needs. Heat and stir this remedy before using it. 8
Store 1 2 3 4 5 6 7 8 Location Lyon - Pentes de la Croix Rhone-Alpes is Rousse France has 1.5 65 449 Not too many competitors, most of them above average are indirect competitors (pharmacies, times the EU Total French organic supermarkets, ‘herboristerie’) inhabitants in purchasing purchasing Residential area, on the way from work to power Lyon 1st & 4th power home and vice versa arr. Inner city but not on the main street, 54% € 38 000 26 179 accommodating young professionals that women in want to have a quick solution and do not average income Middle age Croix (middle-upper want to cross the busy street professionals 1st Rousse class) & 4th arr. Organic Supermarkets Pharmacies Herbalist’s shops 9
Store 1 2 3 4 5 6 7 8 Layout Shelves & allocation Most wanted products A natural clean interior in white and wooden materials, looking cosy and Higher margin Products in the back of (e.g. old-fashioned, yet professional to be credible towards customers products organised by pain relief) to make Shelves: wood, white, light-colored and a bit old-fashioned shapes (merchandise) to the category with customers walk right of the entrance Main treatments located in larger cabins at the sides (products customers different through the whole to meet customers need) and extra merchandising (higher margin products) placed on colors store wooden tables in the middle The cabins will be organised by categories Displays should inform, be a pleasure for the eyes and make it easy to find the product the customer is looking for Bar/ kitchen to Free flow: Salesperson (cashier) in show how stimulating the front so the customer products are customers to can find help quickly 10 made walk around
CRM 1 2 3 4 5 6 7 8 Special Customer Services In-store events Tips and recipes ‘’ Visit the kitchen’’ Share your recipes and tips The place where we make our Exclusive invitations to club Customers can take part in the production products. Thus, customers can events in the store. Special of the products. In the store there is a Access to tips and recipes see with their own eyes how we offers, testing of products and blackboard.It´s a “win-win” situation, connected to different make our product, from our participation in workshops. customers are a great source of innovation seasons fresh, local and organic Sometimes in collaborations and they get more engaged ingredients to products. with farmers and manufacturers. Loyalty programs Free samples Bonus program Target group ➔ Frequent shoppers Collection of points, where purchases When the store is lead to bonus checks. Furthermore, it launching new products includes different bonus points The majority are women campaigns Return your bottle Middle - High income Customers can return the bottles. The Newsletters store reuses the bottles. In return, the Including information about products, customers can either get a discount of High - quality and low - price farmers, new launches, current offers the next purchase or donate the money conscious and campaigns. to local farmers. 11
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