Value Proposition for YSL Beauty - Essay Example

Yves Saint Laurent (YSL) Beauty is a renowned global brand associated with fragrance, makeup and skincare as its product line. Since it was launched in 1964, the YSL Beauty has become a renowned retailer when it comes to producing top olfactory sociological markers. Its makeup delivers the highest technology as inspired by Tom Pecheux, who is the most illustrious makeup artist and the newly inaugurated Global Beauty Director (Mellery-Pratt, 2015). YSL Beautys skincare products feature an innovative technology, complemented by glamour and sensorial experience. The companys skincare division is characterized by a wide range of makeups through its Rouge collection, which applies Glycobiology science and ingredients such as glycans and pistil of Saffron (Mellery-Pratt, 2015). YSL Beauty targets at revolutionizing the fashion sector by empowering individuals to overcome traditional guidelines on beauty and fashion.

Positioning and Target Segment

YSL Beauty utilizes its strong global networks and its current, innovative subversive marketing campaigns to position and reasserts its product line to the targeted customers. Through its Rouge Pur Couture, the company has strengthened its position the lip make-up color segment. The YSL Color Showroom concept has also been vital in improving the popularity of this brand (Bezy, 2015). The targeted market is a young, classy and modern group of customers. This can be depicted by the launching of products such as The Shock (mascara) and Black Opium Floral Shock fragrance, which was tailored to meet the needs of young and trendy customers.

Shopper Behavior Insight

The millennials, who are the targeted market for YSL Beauty, have become digital and social. This section of the customers is willing to purchase products which they associate with a significant value in experiences or considered to be lifestyle enhancement (Bezy, 2015). Recently, there has been a significant change in the retailing businesses, where the preference of the shoppers to communicate with retailers has been highlighted. Advancement in the technology has also led to the changes in the shoppers behaviors. For instance, the rise in the technology has paved the way for the online shopping at the expense of in-shopping. YSL beauty has always prioritized the needs of its customers to ensure its brand aligns with the changing behaviors of the shoppers. This involves the release of the products which are meant to improve the physical appearances of the customers, ultimately increasing their levels of confidence (Mellery-Pratt, 2015). Enhancing the customers looks or beauty is key to meeting the needs of the shoppers.

Using AARRR Model to Suggest the Viable Competitive Breakout or Enhancement Strategy for YSL Beauty

YSL beauty owes its success to the customers. AARRR model can be used to highlight how the company operates in different phases of the customer lifecycles.

Acquisition

During the Acquisition Stage, YSL Beauty utilizes different channels to acquire customers. Through its customer registry feature, YSL can communicate and attract new customers. The company also changed its point-of-sale aesthetic towards the end of the year 2015, ultimately focusing on minimalism and the release of ultra-luxury products (Bezy, 2015). This enabled YSL to be attractive to the increasing number of the young customers.

Activation

YSL Beauty uses different approaches to ensure the customers land on its products and subsequently have a happy and pleasant experience. For instance, YSL Beauty allows its blockbook members to receive at least two deluxe samples of their choice for a given purchase. Samples are available whenever a customer checks out (Yves Saint Laurent Beauty, 2017).

Retention

YSL Beauty applies various approaches to retain its customer base. For instance, upon becoming a YSL member, the customer enjoys a complimentary shipping on orders which exceed $75 as well as receiving two deluxe sample for every order. Other benefits for YSL member include YSL collector-edition gifts and fast access to exclusive online collections (Yves Saint Laurent Beauty, 2017).

Referral and Revenue

YSL Beauty focuses on delivering quality and trendy products which prompts its customers to refer its products to the new potential shoppers. Through the use of social networks such as YouTube, Facebook, and Twitter, YSL Beauty shares vital information regarding its products (Yves Saint Laurent Beauty, 2017). This facilitates the referral of the companys product and services.

Propose Possible Improvements to the Brands Existing Operations

YSL Beauty can improve its operations as per the framework of AARR Model as part of its competitive breakout or enhancement strategy.

Establishing of the membership program is one technique of the strategy that YSL Beauty can use to ensure there is an increased number of young customers who access its products (Activation). Currently, YSL Beauty allows its blockbook members to receive at least two deluxe samples of their choice for a given purchase. Samples are available whenever a customer checks out. Other benefits of being a YSL member include YSL collector-edition gifts and fast access to exclusive online collections (Yves Saint Laurent Beauty, 2017).

The company should consider incorporating the cardless membership to its operations to improve the customer loyalty towards its brand. This should involve the introduction of regular and VIP beauty loyalty Tiers. Both VIP and regular members will be awarded points for every dollar they spent on the YSL Beauty products (1 and 2 points for regular and VIP members respectively). The members can redeem these points for the specified rewards. Becoming a VIP member would require customers to spend at least $ 300 at the Face Shop within a year. Additional benefits under this proposed membership program will involve bonus points to be used as birthday privilege for both VIP and regular members.

Describe Challenges of Difficulties to Implementation

The proposed membership program for YSL Beauty, which aims at increasing the number of the young customers accessing the companys products (fragrance, makeup, and skincare). Irrespective of the anticipated benefits of implementing this policy when it comes to the companys acquisition and retention of the loyal customers, it is subject to different possible challenges which can hamper the achievement of the set objectives (Lutz-Tveite, 2011).

Financial liability for the accumulated or accrued points under can become a hindrance to the success of this membership program. The regular and VIP YSL members will be awarded points for every dollar they spent on the companys products. YSL Beauty will be forced to incur financial costs when the customers redeem their accrued points (Riverview, 2017). This can limit the YSLs flexibility concerning its customer loyalty strategies. The viable solution for this challenge involves the use of the Loyalty Box Software to enable the company maintains financial risks through the issuance of points for the purchase made by the customers.

Another challenge is the tedious sign-up process before a customer becoming a YSL member. The customer registry component which enables individuals to register, either as a VIP or regular member can be lengthy procedure ultimately hampering the number of new members (Lutz-Tveite, 2011). This could be resolved through the fragmentation of the sign-up procedures to ensure the whole process if fast, precise and streamlined to encourage participation. The benefits of this membership program should also be communicated clearly in short sentences to the targeted audience.

References

Bezy, S. (2015). The YVES SAINT LAURENT Beauty year. Yves Saint Laurent Beauty, 1-6.

Lutz-Tveite, M. (2011). Yves Saint Laurent: Brand Analysis . FASH 503, 1-30.

Mellery-Pratt, R. (2015). The Secret of Saint Laurent's Success. Business fashion, 1-9.

Riverview. (2017). Beauty Loyalty Programs in Singapore you Need to Know About. Riverview, 1-3. Retrieved from https://www.riverviewms.com/beauty-loyalty-singapore/

Yves Saint Laurent Beauty . (2017). Why Shop With Us? . Yves Saint Laurent Beauty , 1-7.