When Sam Rainer launched Noodle in the USA in spring 2021, it was with a clearly articulated marketing strategy – a hefty first year sales goal of $ 1.7 Million. Nine months after rollout, Rainer’s plan seemed to have worked quite well: His skin care company and product line had already topped the $1 Million mark and showed no signs of slowing.
Formerly of Zirh Skin Nutrition, a male skin care line that was acquired by Shisheido in 2000, Rainer recognized an underserved market segment among young people ages fifteen to twenty-nine, a group he called “Generation Me”. A combination of Generation X and Generation Y, Generation Me had long been ignored by the more recognized skin care companies. Which tended to make products to help older consumers fight such skin ailments as wrinkles and recondition aging skin. No serious conservatively price high-end skin care solutions existed for young skin problems, such as oily skin, combination skin, and acne. That is, until Noodle entered the market.
Noodle’s twelve- product line was developed by a group of dermatologists focusing on prevention and maintenance rather than repair. Although the products are serious skin care, their names all tie into the lingo used by the Generation Me market. Clean Me face wash, Scrub Me Gently facial scrub, Make Me Soft facial moisturizer, Help Me acne cream, Renew Me face peel, Make Me Moist body lotion, Rub Me message oil, Wash Me Everywhere body wash, Scrub Me Harder body scrub, Heal and Protect Me face and body cream for calming and reducing redness, and newest product, Shield Me sunscreen get with SPF 15. Noodle intends to focus exclusively on skin care- and not branch out into cosmetics – in order to avoid losing the message of serious skin care.
So, with only eleven products when the line was launched (Shield Me was added in Spring 2002), how did Noodle ring up so many sales in such a short period of time? The starting point was zeroing in the Generation Me market. Rainer wanted to identify what fifteento twenty-nine-year-old wanted. He found that they were consumers concerned about “me” and wanted products exclusively for “me”. Once the market was clearly identified, Rainer developed a product line to meet its needs and wants. That is why none of the flagship products contained sun protection. Generation Me likes to look tan, and Noodle products are geared toward a youthful market. The new Shield Me seems to send conflicting message, but the SPF 15 only gives enough protection not to burn during daily activities. Also appealing to the larger target market is the product packaging. Colourful products packaged in clear bottles with funky writing attract interest. Creamier products are in an innovative style of packaging referred to a “tattle” which is a tube and bottle combined, which prevents accidental discharge of the product.
Once the market and products were ready, Noodle introduced them in high-end and retailers like Henri Bedel, Bloomingdale’s, Fred Segal, and Nordstrom. The idea was to build relationships with stores, train store personnel, and make brochures, literatures, and samples available to store customers. Noodle co-sponsored a Teen Appreciation Day at Bloomingdale’s during the 2001 back-to-school season with Ralph fragrances, Tony & Tina cosmetics, and Lucky magazine. Teens received free facials and makeovers during the event, which generated a month’s worth of sales for Noodle in a single day. The cost of the sponsorship was minimal.
Keeping promotion costs minimal has been a key tactics for Rainer. Rather than rollout his new product and company with a pricey national advertising campaign, he chose to use catalogue inserts, postcards, in-store support combined with a heavy sampling programme, and store events like the Teen Appreciation Day. Low promotional costs help Noodle make the most of its pricing strategy. Price points range from $15 for the Rub Me and Scrub Me products to $20 for Help Me acne product.
In a market full of high-priced products aimed at older consumers, Noodle is certainly poised to be a long-term success. Noodle brings together a fun, cool skin care line (that’s still serious and effective) with the niche market it was designed to serve.
QUESTIONS:
QUESTION #1 – Based on what you have read in the case, outline a SWOT analysis for Noodle
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