Kao: Delighting customers, solving problems
Kao Brands has a philosophy in place, which is well suited to win the loyalty of the upcoming generation of millennials — as well as the consumers that segment influences.
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Heather Warnke, director of marketing at Kao, said millennials not only care deeply about the environment and sustainability efforts, but also demand access to products that suit their particular requirements. “In the U.S. market, our new item successes have been focused on solving very specific needs and delighting consumers with new-to-the market innovation,” Warnke said. Examples include Biore pore strips, Jergens Natural Glow, John Frieda Frizz Ease, Sheer Blonde Go Blonder and Jergens BB Cream, all of which are “incremental to the category.”
But Kao isn’t targeting all or only millennials, or any large demographic group for that matter. In its view, millennials will certainly inspire changes in the marketplace, as is being seen today, especially given their significant spending power and strong voices. However, the company said, generalizing and assuming that all millennials think and behave the same way — and have identical needs — would be counterproductive and detrimental to its growth.
“Millennials will play a huge role in influencing the New General Market; as in every generation, there are common beliefs and societal factors that have shaped who they are relative to other generations,” Warnke said. “Yet, we cannot generalize and assume all millennials think and behave the same. We still must tap into unmet needs among specific groups of millennials in order to truly understand them deeply and uncover insights.”
Toward this end, Kao goes beyond reading Facebook posts and online reviews of its products to find out what consumers are thinking. For example, it has put together a panel of the most passionate users of its John Frieda hair care line. Feedback from panel members is elicited for the purpose of “co-creating” products, as well as — and just as importantly — for helping to determine the articulation of these products in-store — “down to what color the violator should be,” Warnke said.
“It’s very important because to delight [the customer], we absolutely have to understand everything about her,” she said. “And what’s going to really win the marketplace is when we untap the non-obvious — the things she’s not going to tell us in a focus group or necessarily say on a blog.”
The company also operates in keeping with a deeply entrenched belief that beauty is not a privilege, but rather the right of every woman to enjoy access to the best beauty technologies. “Since we own and develop prestige beauty products in Asia, we are able to tap into these unique technologies and cascade them into our businesses so everyone can have access to the best products,” Warnke said. This focus extends to the health and safety of all consumers, through such areas as skin darkening without harmful sun exposure, facial cleansing technology that is gentle but effective, and hair care products that enable users to avoid harsh chemical treatments.
To reinforce the democratic message, Kao two years ago tapped American television personality, fashion designer and author Lauren Conrad as a brand ambassador for John Frieda Sheer Blonde and Beach Blonde. Conrad is a celebrity influencer who, Warnke said, is not only just a quintessential blonde, but an individual who is more authentic — as evidenced by the fact that she styles her own hair, owns her own business and, as such, is looked up to by younger consumers. The move has proven very effective, as the company has been able to attract younger users and ignite a passion for a much-loved brand with a new generation of consumers.
With a deep insight into consumers’ specific needs and a penchant for anticipating and identifying in-market trends that will impact a certain group of prospective users, Kao is able to create passionate consumers who love its brands. “This is a very different philosophy than trying to go after large segments of the population and serving mass benefits,” Warnke said. “We have always operated on the fringes, as this is where we are best suited to make an impact on consumers’ lives. Our philosophy is very much aligned with the emerging new marketplace and the strong beliefs of the upcoming millennial generation.”