Ambitious Team for L'Oreal Brandstorm 2011 Landgraf Polina Mizintseva Alexandra Namashko Alexey
Agenda 1. Market analysis 2. Target Consumer 3. Strategy and innovation 4. Conclusion Ambitious Team, Saint-Petersburg 2
Global cosmetics and toiletries market Source: “Market Grooming Men World Report #1" by L'Oreal Ambitious Team, Saint-Petersburg 3
Categories of men products The biggest growth within other categories! Source: Datamonitor (Consumer attitude/ Grooming men World 2004) Ambitious Team, Saint-Petersburg 4
Hair Care market Source: “Market Grooming Men World Report #1" by L'Oreal Ambitious Team, Saint-Petersburg 5
Men’s Hair Care market Source: “Market Grooming Men World Report #3" by L'Oreal Ambitious Team, Saint-Petersburg 6
Men’s Hair Care market > 3000 mln US$ Source: “Market Grooming Men World Report #3" by L'Oreal Ambitious Team, Saint-Petersburg 7
Hairsprays: Men vs. Women STYLING PENETRATION FOR HAIRSPRAYS WOMEN STYLING USAGE Brazil 4% 2% Japan 51% 24% In 2 times less! EU 48% 10% In 3 times less! In 2 times less! Source: "Global Styling Analysis", June, 2008 by International Market Research Department of L'Oreal USA 62% 23% UK 49% 7% In 7 times less! In 5 times less! Ambitious Team, Saint-Petersburg 8
Source: “Market Grooming Men World Report #3" by L'Oreal Ambitious Team, Saint-Petersburg 9
Russia has potential! Market size of men’s hair care market in 2008, mln Euro The biggest growth is in the East Europe! Source: "Men’s grooming market" by Euromonitor Ambitious Team, Saint-Petersburg 10
Styling penetration Total penetration of men styling products in Europe is 34% Penetration High Medium Regular or spray gel Hairspray Mousse/Foam Small Often Pomade/Wax Cream/Lotion Medium Source: "Global Styling Analysis", June, 2008 by International Market Research Department of L'Oreal Necessity Rare Ambitious Team, Saint-Petersburg 11
Styling penetration Total penetration of men styling products in Europe is 34% Penetration High Medium Regular or spray gel Hairspray Mousse/Foam Small Often Pomade/Wax Cream/Lotion Medium Source: "Global Styling Analysis", June, 2008 by International Market Research Department of L'Oreal Necessity Rare Ambitious Team, Saint-Petersburg 12
Styling penetration Total penetration of men styling products in Europe is 34% Penetration High Medium Regular or spray gel Hairspray Mousse/Foam Small Often Pomade/Wax Cream/Lotion Medium Source: "Global Styling Analysis", June, 2008 by International Market Research Department of L'Oreal Necessity Rare Ambitious Team, Saint-Petersburg 13
Competitors on the market of professional cosmetics Brands WELLA SCHWARZKOPF L’ОREAL GOLDWELL Positioning Year of Number of Foundation countries Creative approach, Inspiration, Fashion and Innovation, exclusive, Professional care Innovation, Inspiration, Education Innovative effective technology 1880 150 1898 56 1909 40 1948 60 Ambitious Team, Saint-Petersburg 14
The ”Value / Price” Analysis Avg. price Revenue, per unit bln Euro Brand Customer Value/ Ranking expects* Price SCHWARZKOPF 400 roubles 0. 5 7 0. 0175 1 WELLA 700 roubles 1, 3 9 0. 0128 2 L’Оreal 800 roubles 1 5 0. 0066 3 GOLDWELL 900 roubles 0, 3 5 0. 0056 4 *Expert questionnaires among hairstylists (N=12) Customer expect: + Functionality + Convenience + Accessibility Ambitious Team, Saint-Petersburg 15
Positioning map Innovation SCHWARZKOPF WELLA L’OREAL GOLDWELL Price Technology Ambitious Team, Saint-Petersburg 16
Analysis of the distribution channels Retail outlet At wife/girlfriend ‘warehouse’ Where men can find professional cosmetics? Specialized cosmetics shop Haircut saloon Ambitious Team, Saint-Petersburg 17
Analysis of the distribution channels Retail outlet At wife/girlfriend ‘warehouse’ Where men can find professional cosmetics? Specialized cosmetics shop Haircut saloon Ambitious Team, Saint-Petersburg 18
SWOT-analysis for “L’Oreal Professionnel Homme” Strengths 1. R&D innovation due to long brand history 2. Existing amount of loyal consumershairstylists Opportunities 1. Male grooming habits are changing. 2. Market is ready for new offers. Weaknesses 1. Not enough differentiation from the closest competitors. Threats 1. Great competition 2. The market is slow-growing, it needs to be pushed. WE NEED INNOVATION TO CHANGE THE MALE HABITS TO SUCCEED ON THE NEW EMERGING MARKET IN TERMS OF HIGH COMPETITION Ambitious Team, Saint-Petersburg 19
Target customer Not for market of the professional cosmetics Women? 23. 3% 44% Ambitious Team, Saint-Petersburg 20
Market structure 10% 17% 43% Young adults Adults Mid-lifers Seniors 30% Ambitious Team, Saint-Petersburg 21
“Skim the cream” group 10% 17% 43% Young adults Adults Mid-lifers Seniors 30% Ambitious Team, Saint-Petersburg 22
üMen 35 -49 and over 50 üHave a wife and one children üHave a senior or top-manager position üConscious of their appearance and the effects of ageing Ambitious Team, Saint-Petersburg 23
The perspective group 10% 17% 43% Young adults Adults Mid-lifers Seniors 30% Ambitious Team, Saint-Petersburg 24
üMen 18 -24 and 25 -35 years old üConscious of their career üMake an emphasis on selfappearance, attractiveness women and boosting confidence to self- Ambitious Team, Saint-Petersburg 25
MEN ≠ WOMEN Ambitious Team, Saint-Petersburg 26
MEN ≥ WOMEN Ambitious Team, Saint-Petersburg 27
The marketing dogma: The battle for the consumer is happening in their heads Ambitious Team, Saint-Petersburg 28
Unique conception Complex strategic approach Changing the consumer’s attitude Ambitious Team, Saint-Petersburg 29
Superiority Status Domination Ambitious Team, Saint-Petersburg 30
Superiority Status Domination Ambitious Team, Saint-Petersburg 31
Superiority Domination Status Ambitious Team, Saint-Petersburg 32
Only men, including the staff Exceptional services The atmosphere of the “closed club” Ambitious Team, Saint-Petersburg 33
No threat to masculine brutality No embarrassing The feeling of superiority Ambitious Team, Saint-Petersburg 34
Exceptional promotion Ambitious Team, Saint-Petersburg 35
What is inside? Luxury service to target the “skim the cream” group Ambitious Team, Saint-Petersburg 36
Care occasions Yo ni or s Se M id - lif e rs ul ts Ad un ga du lts 400 350 300 250 200 150 100 50 0 Source: Datamonitor (Consumer attitude/ Grooming men World 2004, p. 22 Ambitious Team, Saint-Petersburg 37
Care occasions Yo ni or s Se M id - lif e rs ul ts Ad un ga du lts 400 350 300 250 200 150 100 50 0 Source: Datamonitor (Consumer attitude/ Grooming men World 2004) Ambitious Team, Saint-Petersburg 38
Did you know? üEach day man lost up to 200 hair üThe hair growth slows down after 50 years üMen’s hair lives for 2 years, while women’s – 4 -5 years Ambitious Team, Saint-Petersburg 39
The unique experience 25 minutes Instantaneous effect Penetrates into the hair roots and activates the anagenesis phase of the hair life cycle … and it’s soooo pleasant! Ambitious Team, Saint-Petersburg 40
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Why stylists will be happy with new experiment? üConsumers enjoy the innovative experiment üDoesn’t require the handicraft – everything is automatic üSimple and easy Ambitious Team, Saint-Petersburg 42
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Types of consumption “Staying away from home” occasions CAGR of 2, 5% “Going out” occasions CAGR of 1% Ambitious Team, Saint-Petersburg 45
INNOVATION! Ambitious Team, Saint. Petersburg 46
Removable cartridges Ambitious Team, Saint-Petersburg 47
Additional product for “Skim the Cream” target group Ambitious Team, Saint-Petersburg 48
Why we believe in success? üProduct usability üInteraction with the most wide audience – the “Experienced men” and “The pretending” üBoost of sales due to new product üEnlarging the market due to offering new type of salon Ambitious Team, Saint. Petersburg 49
THANK YOU FOR YOUR ATTENTION!
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