Clairol

Product 
Develop professional hair colorists assn. with education, training, premiums and unique product fulfillment.
Situation 
Clairol had concentrated marketing efforts on consumers relying on mass-market distribution through retailers. The company is known for its liquid color hair color products and bleaches. A segment of professional hair colorists wanted paste or tub based products which have a unique cache. Research advised Clairol of market potential in a segment which Clairol had limited penetration. Colorists sought and required training in order to be successful with paste or tube based color formulations. Clairol wanted to overcome Colorists’ aversion to its products because of retail branded and liquid based formulations.
Methodology 

DCG worked with Clairol’s Professional division to develop a program that supported, educated, rewarded and supplied hair colorists with paste products.

A separate operation and “Congress of Colorists” was established to support the program.

DCG provided database design, inventory management, promotional support, order processing, rewards/premium fulfillment, product fulfillment and accounting services for this business venture.

Training materials, purchase incentives, promotional offers, automatic shipping and reorder systems were designed, printed, assembled and/or shipped and accounted for by DCG.

DCG kept track of Colorists’ product purchases, preferences and usage to develop reorder patterns and calculate automatic replenishment levels for products. Monthly mailings alerted Colorists of rewards they earned for purchases, calculated reorder needs and alerted hair colorists or salons of automatic shipments that would be made unless they positively notified Clariol of different product needs or non-needs.

Members were enrolled at a fee, trained and automatically promoted and shipped products on a regular monthly cycle.

Training, rewards, contests and promotional offers, deals and a newsletter were delivered each month by mail. Products shipments matched customer preferences and were fulfilled by both automatic shipments or supplemental requests.

DCG provided direct marketing, promotional support, materials management, assembly and product fulfillment support that did not fit Clairol’s primary business model

Results 

A separate division was established to reach a segment of the professional hair care market that had, for the most part, been served only by European manufacturers of tube/paste products. Exclusivity was delivered through a separate brand/club identity that did not cannibalize other Clairol product lines.

The Congress of Colorists reached out to 28,000 professional hair colorists to achieve a 29.6% market penetration with tube/paste based products.

Clairol obtained valued market research.

Marketing support services were designed to cater to a specific group of hair colorists and fulfillment costs were minimized by leveraging DCG resources.

Why it Works 

Outsourcing. Clairol avoided marketing conflicts and substantial investments in infrastructure to support this marketing effort. Clairol leveraged DCG promotional and fulfillment resources.

Technology. Clairol could rely on DCG to provide proven systems to manage, track, measure and promote the business.

Speed to Market. Clairol could utilize DCG expertise to launch and support the new venture quickly.

Accountability. DCG could provide accounting data, cost alternative pricing modules, and measure results to satisfy Clairol oversight. We could introduce new incentives and measure results.

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