Penguin-team, together with the organic cosmetics manufacturer TOUCH, launched a joint project – WOW! TOUCH. What came of it, how we managed to stay afloat and what we are now ashamed of – in a detailed case with all the internal kitchen.
Introductory data
- WOW! TOUCH — it is beauty boxes with natural cosmetics of Ukrainian production;
- product distribution format — subscription boxes 6 times a year (4 seasonal + 2 holiday);
- created on the basis of the TOUCH brand for the production and retailing of the same cosmetics;
- the review period in the case is 7 months.
Work plan
- Develop a product concept and launch strategy.
- Create a website.
- Think over the sales funnel, sales and marketing strategy.
- Form a go-to-market strategy: distribution methods and sales mechanics.
- Plan project implementation and optimization based on the PDCA cycle.
- Launch paid advertising and start!
Preparatory stage
I. Concept
TOUCH had several different personal care products: scrubs, creams, masks and bath salts. All products were united by one goal – comprehensive self-care. But they were sold separately in a small online store www.scrubt.com.
The classic e-commerce model of an online store was not suitable for competing with large brands: taking any significant position in such conditions would cost irrationally large budgets and difficulties.
The solution is a subscribe project with beauty boxes. This format qualitatively develops the market and meets the needs of the client segment. This is a win-win for business and the audience: systematic purchases cover the needs of people for regularly used goods and gain a regular audience of customers from the business. A subscription simplifies the purchase for the user and reduces transaction costs. Ultimately, the company has more resources to invest in the product.
Example for inspiration — dollarshaveclub.com:
- the first subcribe product on the market worth more than $1 billion;
- founded in 2012;
- turnover – 250 million dollars a year;
- occupies 51% of the online razor blade market in the US, outpacing P&G online with their 70-year history of success.
We also analyzed the Ukrainian market of subcribe products, highlighted our competitive advantages and important aspects of competitors.
II. Website
During the development of the site, it immediately became clear that it was pointless to make a classic project, because there are already aggregators and online stores. Aggregators are a big budget and a promoted platform that is easy to enter for retail sales (as the client did before starting cooperation). We don’t have enough strength to create our own aggregator yet 🙂
For an online store, you need an assortment that there is no TOUCH (the brand had 9 items at the beginning of cooperation), plus classic stores have limited potential. Large aggregators will gradually crowd out small stores.
As a result, we settled on a landing page with a simple and stylish design for a presentation + a modern personal account for subscribing and tracking client performances.
III. Sales strategy
When forming the sales funnel and website, developers, designers and marketers worked together so that the marketing strategy was directly embodied in the layout and qualitatively raised the level of the project.
The sales process itself is structured as follows:
- The client fills out a questionnaire: indicates age, skin type, allergies, color type and other information in order to reduce the risk of receiving inappropriate products.
To go to the next stage, you need to specify an e-mail and a name – the test is the beginning of registration on the site.
After registration, a personal account is created where you can purchase a test beauty box without linking a card or link a card and subscribe to regular sending of boxes.