Mori Grants 2008
Graduate Student Researcher Development Grant
Research Project Beauty
Sense: The Application of Sensory Branding in
The Japanese Cosmetics Industry.
Researcher
Caroline SueLin TAN
Faculty
Graduate School of Media and Governance
Introduction
This research
examines the adoption of sensory branding in the cosmetics industry in Japan. This
study groups skincare and color cosmetics and refers to them as cosmetics. The
consumer segments examined includes both men and women. According to Fuji Keizai, the cosmetics
and personal grooming product sales is expected to grow and hit 1兆981億円 in 2008. From a global
figure, the sales of cosmetics and personal grooming products
reached USD$270bn in 2006 and has been growing at a steady pace fueled
especially by demand from emerging economies such as China. With the healthy market
outlook, cosmetics companies are faced with the challenge of winning market
share and consumer loyalty. This creates a pressing need to adopt an effective
branding strategy. The essence of attaining ÔbeautyÕ or the ideal image is emotions and senses. Capitalizing on
sensorial experiences and emotions are cited as essential factors in successful
product & service branding strategies.
Research Objectives
The main goal of this
research is formulating an effective sensory branding strategy for cosmetic
firms in Japan in maintaining their competitive advantage in todayÕs
challenging, global market. One of the objectives of this research is to
examine the effectiveness of the adoption of sensory branding in the cosmetics
industry in Japan. As cosmetics is all about beauty and senses, this research
also examines the elements of culture in influencing the kinds of sensory
branding strategies adopted by Japanese cosmetics brands versus foreign brands.
The study seeks to provide a deeper understanding of how Japanese culture can
be successfully incorporated into sensory branding strategies to ensure brand success
not only within Japan but also, internationally. The final objective of this
research is to examine the challenges faced, the potential and future growth of
cosmetics' sensory branding by Japanese cosmetics companies. This portion of
the research would provide a framework for Japanese companies to successfully
implement sensory branding strategies not limited to just the cosmetics
industry but can also be applied to various industries in gaining market share
and strengthening Japan's international presence.
Research Investigation
As this research focus is on the cosmetics industry, the investigation
will focus on both cosmetics companies as well as consumers. In May 2007,
letters requesting interviews were sent out to 13 cosmetics companies and only
5 interviews were granted (from June 2007 - July 2007). The following
information is solicited from cosmetic companies; both
Japanese and Foreign.
1. The brand values - what does the brand represent?
2. The key success factors of the brand (according to the
company's perspective)
3. Choices of sales channels
4. The brand message that is communicated to consumers.
Apart from that, product introduction and product testing was undertaken
at the companies. The results from the study provided an in-depth understanding
of the brand concept and adoption of sensory branding in reaching out to
consumers.
As for the investigation conducted among customers, a mixed mode of
methods ranging from questionnaires to interviews and observations were
conducted. The consumersÕ perceptions, opinions and feelings towards various
products and brands were obtained and analyzed. Consumers shared the reasons of
brand preference and brand symbolism. The personalities of the consumers were
also mapped to the preferred brands and factors that drive loyalty and brand
selection. The investigation involving consumers started in July 2006 and is
still an ongoing process. The next stage is a 500-questionnaire project. This
portion of the study is a complex process as it involves understanding the
psychology of the consumer, the factors that capture the hearts of the
consumers as well as the internal values and needs that the brands seem to
fulfill.
Research Methods
This research is using both quantitative and qualitative research methods.
A dual approach utilizing both
quantitative and qualitative methods will be undertaken however a majority of
the research will be skewed towards the qualitative approach as qualitative
method prioritizes the study of perceptions,
meanings and emotions. From a quantitative area, questionnaire is utilized
to obtain feedback and perception from 500 consumers ranging from college
students to working adults, both men and women.
The qualitative research methods form the main data collection method of
this research since the focus is on senses. The range of methods are deployed in the data collection phase are as
follows:
1. Questionnaires
Both open and closed ended questions were and
will be administered. The closed ended questions adopt a
5-point Likert scale rating system. A sample size of 500 will be subjected to quantitative analysis (ie. factor analysis) using SPSS. Data will be collected via
the administering of questionnaires. Questionnaires will be utilized covering
both closed and opened-ended questions. The closed ended questions will be
adopting a 5-point Likert scale rating system and
picture representation. The
respondents will have to circle their selected answers according to their
strength of agreement/ disagreement with the statements. As for the opened-ended questions,
respondents will be asked to provide opinions.
2. Interviews
Semi-structural and unstructured interviews
are carried out. Interviews will cover the following groups of respondents
a.
Students
b.
Working
Adults
c. Cosmetic Manufacturers
c.
Cosmetic
Sales Personnel
Laddering
technique is used to solicit information. Listening to consumers and B2B
customers talk about brand experiences reveals not only the rational product
attributes that impress them, but also the emotional reactions. Individual
consumer interviews were conducted (in addition to focus group discussions) as
to obtain objective data and filter out 'group think effect'.
3. Ethnography/
Observation
This is carried
out in studying the purchase patterns and behavior of consumers (at department
stores and drug stores). A majority of the findings will be based on ethnography. Anthropologists
like David Miller and Mary Douglas and Isherwood have used ethnographic data to
answer academic questions about consumers and consumption, consumer perception
and feelings as well. The main thrust of the study is to uncover fundamental
truths about society, human nature, the conduct of daily life and relationships
and social structures. Hence, ethnography would capture the issues best as it relies heavily on up-close, personal experience. It is not far removed from the sort
of approach that we all use in everyday life to make sense of our surroundings;
taking research activities from the lab to where the people are, the streets,
homes, parks, malls. This method is used as it provides information of
consumer buying behavior and decision-making process without the consumer
knowing that he or she is being observed.
4. Focus group discussions
Focus
group discussions are focused on asking probing questions and initiating free
and open discussion and debates. A
total of 70 respondents are used for these discussions; separated into 5 per
group. The respondents were made up of both cosmetics and non-cosmetics users,
both men and women. Focus group research helps marketers identify their
customersÕ deepest desires and provide suggestions for satisfying these
desires. Via these
discussions, perceptions, emotions and opinions of various cosmetics brands,
including effectiveness, gating issues as well as the potential areas for
growth and improvement were gathered. Informal focus group discussions were
conducted in public spaces (ie. cafes, restaurants)
due to time and resources constraints.
5. Prints,
Publications and Internet Resources
The data and statistics from Market reports
(i.e. Fuji Keizai, Euromonitor,
DataMonitor) will be used to complement the research.
Information and consumer perception and feedback are gathered from websites
such as Cosme.net. This is a pertinent channel as research funds are limited
hence, data collection from other geographic areas (apart from Kanto) are
difficult.
Findings
From this study,
I found that the effectiveness of sensory branding varied between the various
senses for both men and womenÕs cosmetics. Not all sensory elements were
exploited and not all sensory elements were found to be a strong driving factor
in getting the consumer to make the purchase. The sensory factors that
influenced purchase and consumption decisions differed between men and women. There
was a clear discrepancy between the cosmetics makersÕ perception on what triggered
consumer purchases and loyalty to their products versus what the consumers
articulated as the main factors that led to purchases and consumption. This
study also reflected that though cosmetics are thought of as products that
embody the complete ÔsensorialÕ experience, there was a lacking in the effectiveness
of sensorial branding.