Conducting a reputation check is an integral part of evaluating the investment opportunity.
In certain situations, a high-growth brand that investors are considering might have undergone bad press. Here the question of bad press’ impact on consumers' perception of a brand arises. Is it still worth the investment opportunity?
RemCal Insights helps assess the relationships between a brand and consumers to unveil if a brand can improve its public image. Here’s one of our recent projects for a global private equity fund.
A client saw an investment opportunity in a makeup brand. The brand had experienced a lot of growth in the last few years, but also some ‘bad publicity’. RemCal Insights conducted qualitative research to help the client understand if this growth is sustainable and how the ‘bad publicity’ had impacted consumers’ perception of the brand.
In-depth, remote interviews were conducted with 16 current and lapsed consumers and 8 makeup artists across the US.
These interviews allowed us to understand who the consumer is, their motivations to use the products, and the challenges they faced while using the brand. We also got to learn from the experts on what makeup trends are in, and their perceptions of the brand.
Although the research showed that consumers’ perceptions of the brand weren’t greatly affected by bad publicity, it revealed other concerns.
The research helped to identify the main drivers for consumers to purchase makeup products and found a mismatch between the brand and the needs of consumers and beauty professionals to a greater extent. In addition, consumer insights shed light on brand positioning that made the client decide not to invest in the brand.