Brand, James Brand

Wednesday, December 13, 2006

You don't always need to advertise

Kiehls is a company owned by L’Oreal which sells skin and hair products.
Haven’t heard of them? -maybe that’s because they don’t spend any money on advertising.
They rely entirely on word of mouth and generating awareness through their philanthropic activities. Rather than spending money on advertising, Kiehls focuses their energy and money on improving their products and increasing their personal service.

Although this may be seen as a risky move by some, Kiehls has profited from this tactic. I think because of this, many of their customers are very brand loyal and feel that Kiehls personally caters to them. They have built up their brand equity based on honesty and the utmost dedication to serve the community. By not advertising in mainstream media, Kiehls gives off the appearance that they are a small town company who cares about their customers and does not solely care about their profit margins. Although they are owned by a huge corporation (L’Oreal), they have done a great job with managing their brand image by separating the two companies in consumers’ minds. Overall, I think Kiehls is a great example of how you don't always need to advertise to build a strong brand equity.

-Sri Reddy

1 Comments:

At 9:43 PM, Anonymous Anonymous said...

I agree that Kiehls has been doing so well because of WOM. Their products are placed in upscale retailers like Bloomingdales, Saks Fifth etc. I uses Kiehls and I am brand loyal to it althought Kiehls is rather expensive. If you see the packaging of their shampoo or conditioner, they are very simple, translucent plastic bottle with some black prints on them. they are not eyecatching or whatnot but they have been able to get repeat purchases through their quality.
ps. i didnt even know that kiehls is owned by l'oreal.

-Joanne Cahyadi

 

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