THE GROWTH PROJECT
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1.0 THE MARKET
2.0 THE BRAND
3.0 THE CONSUMER
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4.0 THE TREND
5.0 THE PACKAGING
6.0 THE STORE
The aim of this portfolio is to provide a visual overview as to the current trends and market landscape of menâ€™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.
(Tyrimou, N. 2013 for Euromonitor)
MARKET SECTOR GROWTH 2007- 2013 (US$MN) EASTERN EUROPE WESTERN EUROPE
* Charts presenting top 4 sectors with highest percentages Source - Euromonitor Trend Report 2010
MARKET SECTOR SALES (%)
BATH & SHOWER
Source - Euromonitor Trend Report 2010
Men’s grooming is anticipated a constant value CAGR (compound annual growth rate) of 1% over the next few years and sales are set to exceed £1.1 billion by 2017. UK market ranked 2nd highest absolute growth in 2013 of 453 US$ 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
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)
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
KIEHL’S BRAND DNA
1921 Irving Morse - owner of the business from 1921 - is barely referenced in products, potential opportunity to be addressed.
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.
Blue Astringent Herbal Lotion inspired and used by Andy Warhol throughout the 1960s.
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.
approachable quirky generous intelligent adventurous
AS A PERSON
credible cultural giving respectful eclectic
bold colourful fun authentic memorable
AS AN ORGANISATION
AS A SYMBOL
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 â€“ 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 â€“ 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
Competitors selected due to persistent appearances alongside Kiehl’s in the ‘Global Men’s Prestige Brand Ranking’ (Kiehl’s Men’s Presentation, 2013)
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
different to women’s. He
doesn’t browse; he shops with purpose, knowing what he wants before even entering a shop. (SOURCE - EUROMONITOR, 2012)
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)
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
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
ADVENTURER ARCHETYPE BOY NEXT DOOR ARCHETYPE Physial endurance Practical Marlboro Man Follows recommendations Kiehl’s Heavy Lifting Range
REGULAR GUY ARCHETYPE Everyday man Wants simple grooming Kiehl’s Facial Fuel
CORE KIEHL’S MALE CONSUMERS
% OF EACH CATEGORY IN MALE CONSUMER TOTAL
% SPENT BY EACH CATEGORY
CONSUMER PROFILE #1
CONSUMER PROFILE #2
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”
TOP 5 PRODUCTS PURCHASED BY MEN IN THE EU
TOP 5 PRODUCTS PURCHASED BY MEN GLOBALLY
Product rankings sourced from Euromonitor, 2012
LY K E E
TLY H IG
HLY T N
TE R A
HOW OFTEN DO YOU PURCHASE GROOMING PRODUCTS
PRIMARY RESEARCH SURVEY RESULTS
CK A P
G N I G
IO T A UT
HE T O
What affects your choice of brand to buy from?
SEE APPENDIX 3 FOR FULL RESULTS
GROWTH IN GROWTH
Selected masculine trend chosen for further exploration (as opposed to the feminine trend) as it was most appropriate for core Kiehlâ€™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.
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.â€? (McMahon, N. 2013)
38 In case of incompatibility see separate video file
BEARDSTOCK Australia Over 200 participants
WORLD BEARD DAY Global Participants increased by over 50,000 over the last 3 years
TH FEB ANNUAL BEARD-OFF America Over 200 participants
TH SEPT Global Over 500 participants in 2013 - 2014 entries are rising
MOVEMBER Global Over 1.1 million participants in 2013
EVENTS IN THE YEAR OF THE BEARDS
TH NOV KIEHLâ€™S DAY Global Proclaimed in 2003
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.
MC LEOD, C. 2014
LOTS OF TEXT
WHICH KIND OF PACKAGING DO YOU PREFER?
45 PRIMARY RESEARCH SURVEY RESULTS
CATEGORISING EXISTING PACKAGING
MANLY METALLICS, STRONG SHADES AND EARTHY BROWNS
PACKAGING colour PALETTES
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
STORE 51 52
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)
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’.
MORE THAN A STORE
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 Kiehlâ€™s to explore, and the next installment will do exactly that.
THE GROWTH PROJECT