THE GROWTH PROJECT
PART 01
03 11 23
1.0 THE MARKET
2.0 THE BRAND
3.0 THE CONSUMER
33 43 51
4.0 THE TREND
5.0 THE PACKAGING
6.0 THE STORE
CONTENTS
The aim of this portfolio is to provide a visual overview as to the current trends and market landscape of men’s skincare in both the UK and globally. Kiehls have been analysed, looking at brand positioning, competitors and consumer set to fully gauge an understanding as to who they are, in order to successfully conceive an idea for a new product and in-store experience for the brand.
THE
INTRO 1
2
1.0 THE
MARKET
(Tyrimou, N. 2013 for Euromonitor)
3
4
BACKGROUND STATISTICS
7.5
MARKET SECTOR GROWTH 2007- 2013 (US$MN) EASTERN EUROPE WESTERN EUROPE
4.5
1.5
* Charts presenting top 4 sectors with highest percentages Source - Euromonitor Trend Report 2010
MARKET SECTOR SALES (%)
SKINCARE
5
6
HAIRCARE
BATH & SHOWER
DEODORANT
Source - Euromonitor Trend Report 2010
Men’s grooming is anticipated a constant value CAGR (compound annual growth rate) of 1% over the next few years and sales are set to exceed £1.1 billion by 2017. UK market ranked 2nd highest absolute growth in 2013 of 453 US$ mn (Euromonitor, 2010)
Market showing “signs of stagnation” (Euromonitor, 2010) “It will be a challenge for companies and brands to expand the current market, as men don’t have a strong interest in trying out new product forms” (Elani, G. 2013)
“Up to 74% of British men are defined as keen shoppers when buying personal care products” (Mintel, 2013)
“Sales are beginning to develop beyond traditional male products, such as shaving products, towards newer concepts.” (Euromonitor, 2010) “Men’s grooming has seen a recent shift in global dominance with the weight of the old guard starting to give way to the emerging countries” (McLeod, C. 2014)
“Men like to stick to what they know and are, predominantly, creatures of comfort when it comes to buying beauty” (Mintel, 2012) Gilette experienced 11% fall in sales in the recession due to men extending one razor use for longer (Porter, R. 2013)
Pre/post/shaving to experience further growth of 4.5% CAGR (Euromonitor, 2010)
OPPORTUNITIES STRENGTHS WEAK
NESS
ES
THR
EAT
S
Marc Jacobs, MAC, Tom Ford and various others have recently started to provide male makeup products such as concealer, gold tinted moisturizer and face masks. Industry sources estimated that Tom Ford’s men’s range could do as much as $2.5 million in its first year. (Mau, D. 2013) The acceptance of makeup and other extreme trends that has been present in Japan for several years is now becoming more global. (Euromonitor, 2010)
MANQUILLAGE
9
TRENDS
The ‘Manly Man’ image is becoming more prominent - countering the more feminine trend. Men with facial hair reportedly feel more masculine and are perceived as more virile than clean-shaven men. (Blanchette, A. 2013) This has lead to a rise in products focusing on facial hair growth and maintenance such as Jack Black Beard Lube and Murdock Beard Moisturiser.
BEARD AND GROOM
10
FAMILY HERITAGE
11 12
SCIENTIFIC SKINCARE
BRAND
QUALITY PRODUCTS
GIVING BACK
KIEHL’S BRAND DNA
2.0 THE
1851
1921 Irving Morse - owner of the business from 1921 - is barely referenced in products, potential opportunity to be addressed.
13
Kiehl’s Cross-Terrain range inspired by the sponsorship of the Mount Everest Climb in 1988 and the explorers taking part in such expeditions.
The Facial Fuel range and its graphics are inspired by business owner Aaron Morse’s former career as a World War II pilot and his love of planes.
Kiehl’s unisex products and packaging strongly reflect the brand’s New York Apothecary roots.
1961
1964
1988
Blue Astringent Herbal Lotion inspired and used by Andy Warhol throughout the 1960s.
HISTORY-INSPIRED PRODUCTS
2008 A limited edition Pear Corner product range was launched to reflect the pear tree planted at the original New York Kiehl’s site in 1851.
14
AAKER MODEL
approachable quirky generous intelligent adventurous
AS A PERSON
credible cultural giving respectful eclectic
bold colourful fun authentic memorable
AS AN ORGANISATION
AS A SYMBOL
15
16
natural reliable innovative premium quality honest
AS A PRODUCT
Scientific credibility Heritage Customer service Facial fuel range Product quality Worldwide reach Net sales growth (AVG +33%)
Clarity of brand image – too many brand heritage messages at once Website presentation is inconsistent
New insight and innovation into the skin barrier function/protection and repair Stronger social media presence – lots of followers but little response in likes/ comments Further success in Facial Fuel Range
Stagnation of current male grooming market Consumers buying from larger and cheaper brands due to recession Up-and-coming new male focused brands such as Bulldog
OPPORTUNITIES STRENGTHS WEAK
NESS
ES
THR
EAT
S
INCLUSIVE
MODERN
COMPETITION MASCULINE
EXCLUSIVE
MAPPED OUT
FEMININE
SPECIALIST
19
20
MASS
HERITAGE
Competitors selected due to persistent appearances alongside Kiehl’s in the ‘Global Men’s Prestige Brand Ranking’ (Kiehl’s Men’s Presentation, 2013)
OPPOSING OPPOSITION
Launched Men + Care range in 2013specially formulated to give men’s skin the ultimate protection. (Dove, 2013)
The Australian brand expects sales to rise by more than 40% this year as it prepares to expand in South America and launch new e-commerce sites in Asia. (Chu, K. 2013)
72% of participants in an online primary research survey are regular consumers of Dove Men - see Appendix NUMBER for full results)
Aesop Chief Executive Michael O’Keeffe predicts sales of US$82 million in the fiscal year ending in June 2014, compared with US$58 million the previous year. (2013)
Under the Unilever Group the brand are ranked as having the second largest market share under Proctor and Gamble (Euromonitor, 2010)
The brand is on “a quest to create a range of superlative products for the skin, hair and body. We are committed to using both plant-based and laboratory-made ingredients of the highest quality and proven efficacy – particularly those with the greatest anti-oxidant properties.” (Aesop, 2014)
COMPETITOR PROFILE #1
COMPETITOR PROFILE #2
21
22
different to women’s. He
are SO
doesn’t browse; he shops with purpose, knowing what he wants before even entering a shop. (SOURCE - EUROMONITOR, 2012)
3.0 THE
are the biggest buyers of male grooming products OF THESE MEN ADMITTED TO USING SEVEN OR MORE GROOMING PROUCTS IN THEIR DAILY R O U T I N E
44% TO 48%
(SOURCE - EUROMONITOR, 2012)
CONSUMER
WANT CHOICE AND DIRECTION WHEN BUYING GROOMING PRODUCTS. THIS MEANS STEP-BYSTEP PRODUCTS ARE ALSO HIGHLY FAVOURED (SOURCE - SPA FUTURE THINKING, 2012)
MALE SHOPPING HABITS
23 24
OUTLAW ARCHETYPE Driven by fashion Counter-cultural
LOVER ARCHETYPE Luxurious understatement Aloof
CREATOR ARCHETYPE Artist/Writer/Blogger Non-conformist
Kiehl’s Limited Edition Creme de Corps
Kiehl’s Blue Herbal Gel Cleanser
Kiehl’s Eye Alert
THE REVOLUTIONIST
MR CULTIVATED
THE EXPERIENTIALIST
ADVENTURER ARCHETYPE BOY NEXT DOOR ARCHETYPE Physial endurance Practical Marlboro Man Follows recommendations Kiehl’s Heavy Lifting Range
LIONHEARTED MAN
Kiehl’s Unisex
THE ADVOCATE
REGULAR GUY ARCHETYPE Everyday man Wants simple grooming Kiehl’s Facial Fuel
THE UTILITARIAN
CORE KIEHL’S MALE CONSUMERS
% OF EACH CATEGORY IN MALE CONSUMER TOTAL
25 26
% SPENT BY EACH CATEGORY
ANDY HEWITT
CONSUMER PROFILE #1
CONSUMER PROFILE #2
JAMES COWLEY
30 EXPERIENTIALIST
35 MR CULTIVATED
Co-Founder of The Interest Network
Director at Talented Group Recruitment
I am “consistently forward-thinking with relentless drive to experience, learn and evolve.”
I “love anything bespoke - when I can afford it”
27 28
TOP SELLERS
TOP 5 PRODUCTS PURCHASED BY MEN IN THE EU
29 30
TOP 5 PRODUCTS PURCHASED BY MEN GLOBALLY
Product rankings sourced from Euromonitor, 2012
LY K E E
W
FO
RTN
TLY H IG
MO
HLY T N
E
RLY
TE R A
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G AN
LY RE
RA
E RIC
P
HOW OFTEN DO YOU PURCHASE GROOMING PRODUCTS
PRIMARY RESEARCH SURVEY RESULTS
U
R CT
P
D RO
CK A P
A
G N I G
D
N
RE
P
IO T A UT
T UC
E GR
IN
D
O PR
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T IEN
R
HE T O
What affects your choice of brand to buy from?
31
32
SEE APPENDIX 3 FOR FULL RESULTS
4.0 THE
TREND*
GROWTH IN GROWTH
33 34
*
Selected masculine trend chosen for further exploration (as opposed to the feminine trend) as it was most appropriate for core Kiehl’s consumers - shown on page 21 - and due to the highest sales coming from the current Facial Fuel Range.
FAMOUS FUZZ IRVING MORSE - WHO TOOK OVER KIEHL’S IN 1921 - SHOWCASING FACIAL HAIR
CHRIS SALGARDO - CURRENT PRESIDENT OF KIEHL’S USA SPORTING A STRONG BEARD AND MOUSTACHE
STREET-STYLE STUBBLE Examples of facial hair in young men aged 21-35 using primary images taken in street-style and interview formats.
35
36
VIDEO INTERVIEW WITH A BEARDED CONSUMER
In recent years, the rakes of Tinseltown have sheathed the blade. Clooney, Affleck, Pitt, Jackman, Gosling, Gyllenhaal and Beckham are among the stars whose example has encouraged Western men to change the face they present to the world.� (McMahon, N. 2013)
38 In case of incompatibility see separate video file
25
BEARDSTOCK Australia Over 200 participants
TH JAN
39
07
WORLD BEARD DAY Global Participants increased by over 50,000 over the last 3 years
09
TH FEB ANNUAL BEARD-OFF America Over 200 participants
TH SEPT
12
TH SEPT Global Over 500 participants in 2013 - 2014 entries are rising
1
MOVEMBER Global Over 1.1 million participants in 2013
ST NOV
EVENTS IN THE YEAR OF THE BEARDS
12
TH NOV KIEHL’S DAY Global Proclaimed in 2003
40
Brands such as London Barber chain Murdock, Jack Black and Bluebeards Revenge have released products shown opposite during 2013. These include shampoos, conditioners and detanglers. We can deduct from this a current gap in the market for a series of step-by-step products that can provide necessary elements for the different stages that occur in the process of growing and maintaining facial hair.
EXISTING PRODUCTS
41
42
5.0 THE
PACKAGING
MC LEOD, C. 2014
43 44
PLAIN/SIMPLE
LOTS OF TEXT
QUIRKY GRAPHICS
66% 55%
05%
WHICH KIND OF PACKAGING DO YOU PREFER?
SIMPLE/CLEAN/MODERN
45 PRIMARY RESEARCH SURVEY RESULTS
46
HERITAGE/TEXT/COLOUR
CATEGORISING EXISTING PACKAGING
MANLY METALLICS, STRONG SHADES AND EARTHY BROWNS
PACKAGING colour PALETTES
48
Aesop and Triumph & Disaster amoungst others have released product sets contained in washbags or wooden containers. This relates to mens desire to be shown a step-by-step process in grooming while making life easy. A collaboration with a brand such as Rag and Bone (who have similar heritage to Kiehl’s) or J-Crew to produce a washbag for new product sets could fit this trend for Kiehl’s.
IT’S IN THE BAG
49 50
6.0 THE
STORE 51 52
AFTER
Meeting with friends twice a week greatly improves men’s physical condition and well-being, according to Robin Dunbar, a leading psychologist and a professor of Oxford University. (Adkins, S . 2013)
BEFORE
Men are alienated as their traditional, work associated friendship groups no longer exist in the ways that they used to, so they are taking proactive steps to re-ignite their relationships around shared interest. (LSN: Global Trend Briefing, 2013)
New York stores - such as shown directly left - have started a trend for stores with secret identities that reveal themselves at night. Mens’ preference for a sociable experience paired with previous research demonstrating their tendancy to buy grooming products monthly indicates the potential to transform store space after hours to a monthly male only ‘hang-out’.
BEFORE AFTER
MORE THAN A STORE
53
54
This portfolio advances to implementation stage having uncovered a market dominance in pre-shave, shave and post-shave sectors combined. This focus on facial hair alongside a rising trend for full beards and related products indicates untapped potential for Kiehl’s to explore, and the next installment will do exactly that.
THE
END 55
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THE GROWTH PROJECT