Recently, we came across these beautiful cosmetic display units which really caught our attention. The cosmetic industry is bombarded with so much competition in the market, especially in retail.
Retail marketing requires a full understanding of who your target customers are, as well as your competitors. A very common reason why many start-up cosmetic brands do not survive for long – is the lack of understanding of their internal/external environments, and the how to be strategic in retail markets.
Therefore, today we will share with our readers 5 retail marketing strategies they can implement to attract customers’ attention and compete with other brands. To do this, we’re featuring some cosmetic display units from Sephora to help us explain our case.
1. Gift with Purchase
A gift-with-purchase is basically a sales promotion strategy brands will use to encourage customers to purchase their product. This strategy is especially useful if the brand just recently launched a new product line that they would like their customers to try.
In order to do this, the brand must be able to establish the conditions of redeeming the gift. It could either be :
- (amount of money spent) minimum spend of $____ for a free ____ gift
- (quantity of product) buy ___ of product X and redeem a free ____ gift
Using gift-with-purchase helps create a higher perceived value for the customers, and it makes their purchase much more worth their money. Therefore, it is also important that the brand picks a free gift that aligns with their nature of business or something the target customer would want.
Which is why – in this example, the hand bag is the freebie because their cosmetics are targeted to women who typically like hand bags.
2. Use Samples
Cosmetics are a very subjective industry. With so many variations of cosmetics, there are plenty of brands customers get to choose from. Among many considerations from customers could be “which product will look better on my skin?” and “is this safe for my skin?”.
Therefore, it is subjective in a sense that each product might work differently for different consumers – depending on their skin, allergies etc.
To solve this problem, cosmetic brands are very persistent with letting their customers sample some of their products. With cosmetics, customers require a sample in order to assess if the product will benefit them. This is especially important because customers will usually purchase products that they are only familiar with.
3. Use Licensed Characters / Co-branding
Another great way to improve demand for your products is to co-brand with a larger franchise. Licensed characters are basically intellectual property (IP) licenses brands pay to the owner to use their characters/brand/content as a collaboration or integrated into the brand’s product line.
This is perfect if the brand wants to expand and gain more exposure into an untapped market base. In this example, using Barbie in their marketing campaign is a great tactic to attract customers who are already familiar with the fictional character. They leverage on Barbie, who many girls have grown to know of. This could reminisce good memories with the target customer (girls), and prompt them to purchase their products because of its association with Barbie.
However, closing a licensed deal could be very expensive – but an almost sure fire way to boost sales in retail.
4. Use your corporate colors
This is an especially useful advice for brands that are trying to boost their brand image. Corporate colors are important to follow and abide by. Branding requires several visual representation such as logos, tagline and corporate colors. This helps the customers associate these visual representations to your brand.
If this is not establish earlier with the market, it will confuse customers and it will be difficult to encourage loyalty with customers.
5. Be Unique
In order to be successful in retail, its important for brands to assess their competition. Even though customers trust brands they are more familiar with, customers are also much more inclined to explore for brands that are unique among others.
Having a comparative advantage and your own unique display will help your brand stand out in retail stores. Capturing attention of customers should be one of your brand’s biggest priorities in retail.
Notice the common denominator among these cosmetic display units? There are all dedicated to their own brand, and unique in terms of their display design, their color schemes and their branding.
Interested in learning more? We have made a lot of work with making product displays, same as those we’ve featured in this blog.
Contact us with your ideas and we will be happy to assist you in manufacturing and design.
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