No 7 - the relaunch of a brand
A Boots case study

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Page 2: The cosmetic market

The Cosmetic market in the western world is huge business. In 1995 the Total UK Skincare Market was valued at £459.6 million and the UK Colour Cosmetic Market accounted for £551.8 million. The market is divided into a number of sectors to accommodate important segments:

  1. Teenage/Budget Market. These products are aimed at fashion conscious young women and include brands such as 17, Rimmel, Outdoor Girl and L’Oreal. Products are for those who wish to buy more make-up for less money.
  2. Mid Market. Customers who buy in this sector require premium products but at affordable prices. Brands include Revlon, Max Factor, Sensiq and Almay.
  3. Premium Market. Products at the top end of a market are known as premium brands. Estee Lauder is a good example. Customers value the perceived benefits of these brands and are prepared to pay significantly more for them.

Boots 2 Image 1Prior to the relaunch of No 7 in 1995, the market had polarised. The Teenage/Budget and Premium markets were growing while, the Mid Market sector was relatively static. No 7 positioned in the Mid Market sector was perceived to be good quality, sold at a reasonable price but brand identity was not strong. Confusion existed between No 7 and 17 and it was often referred to as ‘Boots Own Brand’.

Although No 7 was widely used it had a large number of older customers. It was the most salient and used brand along with Rimmel and Max Factor but, of the three, it was most biased towards the 31 to 45 year olds rather than the 20 to 30 year olds. The driving factor behind the 1995 relaunch was to move the brand from the Mid Market sector to the growing Premium Market. The objective of the relaunch was to encourage lapsed users to repurchase and to generate new customers.

Benefits

No 7 is the UK’s most popular colour cosmetics brand. New products are the lifeblood of the cosmetics industry. No 7 offers women an innovative and exciting range of products with many new colours, advanced scientific skincare and is packaged in stylish and classic designs.

Over recent years the development work conducted by Boots Skincare and Colour Cosmetics Specialists has enabled No 7 to make some substantial claims for many products in the range. No 7 products are:

  • Not tested on animals.
  • Hypo-Allergenic and are less likely to cause allergy.
  • Dermatologically Tested (products have been tested or user trialled on the skin of human volunteers).
  • Many products are non Comedogenic (non pore blocking).
  • Most of the range is Fragrance Free.

Boots | No 7 - the relaunch of a brand
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