VAGHEGGI phytocosmetics

Case Study

Proprietà intellettuale di Antonella Pescio Consulting S.A.S – riproduzione vietata

VAGHEGGI Phytocosmetics – case study

Your task is to form a team and develop step-by-step the marketing

plan 2021-23 of the Vagheggi phytocosmetics brand, completing the
following analytic steps:

▪ Consumer segmentation
▪ Competitive analysis
▪ Determine Vagheggi’s main differentiating factors
▪ Define the brand positioning
▪ Develop the 2021-23 marketing plan

To help you perform the task, you can rely on the following
information:
▪ Company profile and history
▪ Summary of beauticians’ interviews
▪ Relevant info on main competitors
▪ Summary of available market research output

At the end of the case study you will find the formats to fill out
Proprietà intellettuale di Antonella Pescio Consulting S.A.S – riproduzione vietata
 The company

▪ At the beginning, in the 1980s, the Vagheggi / Chenot leadership had given the Vagheggi brand
a very specific identity as a pioneer of phytocosmetics, with an innovative and high quality
product, obtained by combining active ingredients of strictly vegetable origin and a premium
price positioning
▪ When the control package changed ownership, the choice to aggressively increase turnover
through the adoption of a push marketing strategy characterized by the massive use of price
promotions, led to a significant reduction in the price and the consequent dilution of the brand
image: currently Vagheggi is almost always the low price but good quality alternative to the
primary brand in the beauty centers that carry it
▪ Vagheggi has always focused on quality, so much so that it is considered one of the companies
with the best quality / price ratio in the wellness sector
▪ In fact Vagheggi cosmetics contain only the best quality plant active ingredients
(phytocosmetics) which give results if used continuously over time
▪ This feature has rewarded the company, whose reputation relies more on product quality than
on the brand image
▪ Vagheggi distributes its products only thorugh to beauty centers, which use them to perform
specific treatments, such as anti-cellulite ones and facial cleansing. Furthermore, the products,
are offered by the beauticians to final consumers for daily use
▪ Vagheggi’s new ownership intends to relaunch the Vagheggi brand by realigning its image to
the superior quality of the product and consequently gradually returning to a premium
positioning

Proprietà intellettuale di Antonella Pescio Consulting S.A.S – riproduzione vietata

 Consumer demographics and Sales trips/store-checks’ reports

Several assistants were made for sale during which 25 owners of beauty centers, spas, hairdressers and herbalists were interviewed.
Here is a summary of the main insights collected:
There are several consumer groups:
▪ Roughly 25% of beauty center goers living mainly in large metropolitan areas, would undergo any machine treatment to get fit for
the bikini test. They are between 40 and 60 years old, but they are decreasing. these specimens appear in the spring and disappear
immediately after summer. The news follows, they read the newspapers and get information by word of mouth, but also on the
internet by reading blogs and asking for advice in the Forums. Perhaps DIBI is their go-to brand
▪ Another 25% of beauty center goers aged between 35 and 60, and with a low level of education choose Jean Klebert as their
favorite brand. Also this group is decreasing. Jean Klebert promises miracles and attracts the ladies keener to try the latest
discoveries (Botox, hexapepdite, etc.). They are ready even to jeopardise their health to pass the bikini test, perhaps
underestimating the future consequences. As the previous group they steadily attend beauty centers especially in the spring. They
tend to be price sensitive
▪ Another small group is made up of heavy-consumers who are totally price insensitive. This segment is dominated by the French
luxury brand Matis. They are between 35 and 55 years old, have an above average income and very image conscious. They spare no
expense in order to have excellence. This segment is small (about 10%), decreasing and attends the center weekly
▪ A rapidly growing segment consists of health-conscious girls, who represent about 15% of the universe, tend to be young and
educated. They regularly attend beauty centers and the SPAs because they realize beauty is the result of healthy habits. they read
the advice of experts, doctors, and bloggers. They are not easily duped as they are competent in the field, for them the ingredients
are important but also the credibility of the producer, for example Vagheggi is a well-appreciated brand. They are not very price
sensitive
▪ Another segment more or less of the same size and with similar demographic characteristics and price sensitivity is consisting of
stressed career women, who need to relax and know that stress is the enemy of health and beauty. For them, the wellness center is
an outlet and their favorite brand is Comfort Zone
▪ Teenage girls also represent another interesting group of customers, although small (5%), they occasionally come to clean their
faces: their main problem is in fact acne. They are looking for products that reassure them, practical to use and maybe trendy, but
companies should improve on this aspect. Being digital natives they surf a lot the internet to find the right center
▪ The last group of potential users is represented by men, and is articulated in 2 main groups: the first is the young career man (20-40)
who doesn't mind going to the beautician, always wants to look perfect, takes great care of his appearance and reads magazines
such as Vogue Uomo and GQ. This is a very small segment (5%). The second group is made of middle-aged men, perhaps newly
divorced and looking for a second occasion, who goes to the hairdresser once a month for the cut, but feels uncomfortable visiting a
beautician. He would like products with a manly image, to buy from the hairdresser. It could potentially be a sizeable segment

Proprietà intellettuale di Antonella Pescio Consulting S.A.S – riproduzione vietata

 Sales trips/store-checks’ reports 2/2

▪ Vagheggi is not always found in high-level centers, it is often displayed in a disorderly manner and with antiquated
marketing material. Sometimes it is also present in herbalists

▪ On the point of sale, Vagheggi is almost never highlighted: the products often get confused in the midst of those of the
competition, also because of their total lack of identity. Once in fact they had a clean packaging that emphasized their
phytocosmetic character. Now new lines have sprung up like mushrooms featuring different colors, logos, fonts, graphic
styles and even sub-brands, with an overall chaotic and cheap effect. In general, the packaging of the competitors is
much more refined, consistent and elegant, even if perhaps the product is of comparable if not inferior quality (not all
of them have real R&D like Vagheggi). Furthermore, there is no information material and the samples are obviously low
cost

▪ Vagheggi is appreciated above all for its value for money (price index 70), its phytocosmetic reputation is strong, it has
a soft personality and a serious and transparent image. The products are also considered soft and non-aggressive. The
best known products are the famous sour cream, the see-weed shampoo and the lemon hand care cream

▪ Beauticians are very knowledgeable about the latest news in the sector but often divide themselves on
phytocosmetics: some seem a little skeptical about the results that can be obtained with such products, while others
are great supporters of natural cosmetics. We have also noticed that the brand is not always known and customers are
not very up to date on the novelties in the Vagheggi range

▪ The concept proposed by a Veronese beautician who focused the center on natural treatments, such as hay baths and
flavored saunas, was interesting, and based only on natural products and creams

Proprietà intellettuale di Antonella Pescio Consulting S.A.S – riproduzione vietata

The competition

Proprietà intellettuale di Antonella Pescio Consulting S.A.S – riproduzione vietata

The competition

Jean Klebert is part of the Baldan Group,

together with the Gil Cagné brand. The
company produces:
▪ Creams and serums for face and body
(Hexapeptide Cream, Oyster Extract
Cream, Aromatic Oils, etc.)
▪ State-of-the-art machinery (Laser Hair
Removal, Acoustic Waves, Slimming
Mini-SPA, etc.)
▪ Herbal teas

The focus is on weight loss. The Gil Cagné

brand, on the other hand, specializes in
make-up. The group has entered into
partnerships with beauty centers, hotels and
spas, offering consultancy and management
services for the center. Herbal teas complete
the range. The price index is 80, like
Vagheggi’s)
Proprietà intellettuale di Antonella Pescio Consulting S.A.S – riproduzione vietata
The competition

Matis is a high-end Parisian company. It

mainly offers face and body creams and
serums. It also features an exclusive machine
for facial treatments (stain removal). It has a
refined image that evokes French centers
and perfumeries. Offers visible results. Matis
partners with beauty centers where it
organizes events (mainly promotions on the
treatment of the month advertised on the
Matis website) Through these centers it
offers treatments for the body (draining and
slimming) or for the face (cleansing). It has a
high price (index 130)

Proprietà intellettuale di Antonella Pescio Consulting S.A.S – riproduzione vietata

The competition

Based in Milan, it offers a technological

method ensuring fast results, almost as if
beauty were an industrial product. It relies
heavily on DIBI patented machinery (Laser,
Ultrasound, Electropermeation, Radio
frequency) The range of creams and
serums for face and body complete the
range. It has DIBI-branded centers that
offer treatments with the company's
machinery and products, new generation
sunscreens, professional make-up and
essential beauty services such as
manicures, pedicures and hair removal.
There is also a shopping area where you
can buy products to use at home. It has an
average price (index 100)

Proprietà intellettuale di Antonella Pescio Consulting S.A.S – riproduzione vietata

The competition

Comfort Zone is an Italian company closely

linked to the world of spas (the first center
was born in the thermal baths of
Monticelli, Parma) that focuses on
relaxation and pleasure, achieved through
treatments with face and body cosmetics.
In addition to the classic beauty
treatments for face and body, the
company offers massage techniques
combined with music and fragrances to
better relax the client, such as massages
with hot stones, aromas and Tibetan
music. They have five »Comfort Zone
spaces", beauty centers and spas that best
promote the company's products. In
addition, Comfort Zone has partnered with
local beauty centers that use Comfort Zone
products and treatments. Other
partnerships have been made with hotels
and spas. It has a premium price (index
120)

Proprietà intellettuale di Antonella Pescio Consulting S.A.S – riproduzione vietata

 Market trends

A recent market research shows that the most significant trends in wellness and body care are:
• Back to nature:
▪ cosmetics based on active vegetal ingredients
▪ treatments based on massage and manipulation techniques that do not exclude the personal relationship such as the machinery of the 80s, but
rather enhance it

• Search for a holistic approach, which solves the causes of the aesthetic problem instead of merely intervening
on the symptoms, without forgetting that beauty depends not only on the physical but also on the mental
health:
• convergence between medicine (especially natural) and aesthetics, with the proposal of food supplements and
the collaboration between beauticians, herbalists and doctors
• attention to the psychological dimension Hedonism in cosmetics with great care to transmit pleasant sensations
with the aroma (food scents, cocoa), texture, color, dexterity in treatments that must be pleasant and relaxing
not only in themselves, but also as a context (hamman / city beauty farm where all the details are taken care of:
furnishings, colors, music, perfumes)
• Speed ​/ convenience:
▪ in cosmetics with time-saving products: for example BB Cream (moisturizer and tinted foundation together)
▪ in treatments: eg. permanent makeup

• Increasing use of cosmetic surgery: an instant and radical solution, it does not require commitment and
perseverance
• Want to take the institute home with you
• Increasing use of cosmetics by men

Proprietà intellettuale di Antonella Pescio Consulting S.A.S – riproduzione vietata

 Market Segmentation Chart
Beauty- Health- Stressed Teenage
Bikini body Heavy Young Middle-
Segment centers
freaks consumers
concious career girls with
career men aged men
goers girls woman acne issues
Size:
• Group size as a
% makt
• Frequency
Beauty center 25% 25% 10% 15% 5% 5%
• Consumption
intensity
• Range
wideness

Growth rate decreasing Decreasing decreasing Growing rapidly Growing Sustainable

Price Tend to be price-

Low none Low Low High Low
sensitivity sensitive

Appear in the Appear in the All year round,

Category
spring, disappear spring, disappear every weekend
attitude after the summer after the summer

News, Commercials,
Key
newspaper, word word of mouth
influencers of mouth

Purchase > Be fit for the > Offers of

trigger of bikini test miracles
cosmetics
> Get fit > Quick results
Must > Show results
quick

> Professionally > Trendy

Plus , patented

Main > DIBI > Jean Klebert > Matis

competitors
and market
shares/
Favored
brands
Proprietà intellettuale di Antonella Pescio Consulting S.A.S – riproduzione vietata
40-60 y/o women 35-60 y/o women 35-55 y/o women
Competitors Chart

Competitor Vagheggi
Product range,
packaging, price,
kind of beauty center
carrying the brand

Typical consumer

Brand and products

personality

BENEFITS

▪ Functional

▪ Emotional

▪ Sensate

▪ Symbols& signals
(logotype, colors,
pay-off, etc.)

Proprietà intellettuale di Antonella Pescio Consulting S.A.S – riproduzione vietata

Key Differentiation Factors

Key Competences/ Main Differentiation Factors

Product Heritage Personality

1.Product range 1.Reputation 1.Personality

2.Price 2.Typical user profile 2.Mission
3.Pack 3.Messages 3.Relationship with consumer
4.Distribution
5.Symbols& signals (logotype, colors, pay-off, etc.)

Proprietà intellettuale di Antonella Pescio Consulting S.A.S – riproduzione vietata

Brand Positioning Chart

BRAND ESSENCE:

Brand Positioning
TARGET:

COMPETITIVE SET:

OWNED BENEFIT:

REASON WHY:

Proprietà intellettuale di Antonella Pescio Consulting S.A.S – riproduzione vietata

Marketing Plan

Objective Strategy Action 2022 2023 2024

Product

Packaging

Price

Point of sale

Events

Digital/web/social/PR

Proprietà intellettuale di Antonella Pescio Consulting S.A.S – riproduzione vietata

 17

Let’s form the teams

As anticipated during last class those of you who intend to
regularly attend classes will need to form teams of up to 8 people
to work on the the Vagheggi case study
Each team will have to develop the Vagheggi Marketing Plan step
by step, under my supervision and during classes
If you want you can be graded based on your Vagheggi project
work instead than taking a written examination at the end of the
course together with the students who can’t attend classes

Proprietà intellettuale di Antonella Pescio Consulting S.A.S – riproduzione vietata

 18
Market Segmentation Example: IGT

Spoiled Spoiled
Segment CEO VIP Manager Jet-set
Businessman Vacationer

Size

Growth rate

Price
sensitivity
Entrepreneurs and Multinationals Pop stars, actors Spoiled Middle Jet owners,
Typical end
their family members top manager and the like Entrepreneurs on managers pilots and crew
user during tours holiday
“I have a driver “I need a driver “I need a driver “I have a driver “Normally I take “I have a jet
because I am a Very to work also because they because even on a cab or the because I am a
Important Person” when I am treat me with holidays I’m a VIP, subway: when VIP, imagine if
traveling, but gloves, for my but also because I there are many when I land I
Why they use also beacause I personal safety travel with all my of us they take a regular
chaffeur don’t speak a and to allow me clan and at the end reserve us a cab”
services word of Italian” to rest while I’m a van with drivers minivan to save
on the move” costs us less then a money”
cab”

Proprietà intellettuale di Antonella Pescio Consulting S.A.S – riproduzione vietata