Page 1

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

QU

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

S

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

56


THE GROWTH PROJECT

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