Cowshed Case Study

Cowshed Case Study CSCM0283/ Published 10/2009

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DATAMONITOR VIEW

CATALYST

Cowshed is a UK-based personal care brand utilizing botanical ingredients. The company has successfully capitalized on

consumer desire for natural ingredients and has expanded internationally over the course of the past decade. This case

study examines the Cowshed brand and how it has grown from its origins as a spa-exclusive brand.

SUMMARY Cowshed was originally established in the UK in 1998. A spa attached to a hotel initially had exclusive use of

Cowshed products, but the company was able to successfully distribute products to a wider customer base

through selected outlets around the UK. Cowshed segments its products by mood, which has proved successful

due to the emotional connection that many consumers feel with their preferred personal care brands and

products.

Natural ingredients have continued to move towards the mainstream in recent times and doubts over the efficacy

of such products have been allayed to some extent. Demand for natural is still strong after the effects of the

economic downturn and this has helped to prove that the market can no longer be described as niche.

Cowshed sources its ingredients from a walled garden at the original Babington House site, which lends an air of

authenticity to the brand.

Cowsheds products have been recognized through awards, most notably from Natural Health Magazine.

Independent accolades such as this can assist a brand by providing a seal of approval from a respected and

uninvolved third party. The company has also sought to update and revitalize its product portfolio at regular

intervals to appeal to both existing and new customers.

CASE STUDIES

Cowshed Case Study Maintaining a professional and natural skincare brand

Reference Code: CSCM0283

Publication Date: October 2009

Cowshed Case Study



ANALYSIS

Cowshed has evolved from a spa-only brand, but has maintained a professional reputation

Cowshed products were first used in a UK spa in 1998

The Cowshed brand name first appeared in the UK in 1998, consisting of a natural botanical range of personal care

products. Originally, products were exclusively used in a spa attached to Babington House, a hotel and private members

club in Somerset, UK. This spa was named as the Cowshed Spa due to the previous use of the building as a barn. In 1999,

Cowshed products became available to the public through selected outlets. The brand has grown and is now used in a

select chain of spas, while also being available for purchase by the general public in the UK and other countries.

An air of professionalism has been maintained by Cowshed, which continues to operate in spas and branded shops. The

company presents its products at a price-point above the mainstream, but still in a price range that is affordable for many

consumers. Through this approach, the company retains some premium credentials with consumers seeing products as an

affordable luxury that can help with escapism. This is a particularly important concept during the recession, with consumers

more willing to look to make savings in other areas in order to maintain their personal care purchases if they are happy with

the results. The demand for professional quality products for use in the home was established before the economic

downturn, but this trend has continued despite consumer cutbacks.

Cowsheds products are segmented in a fashion that encourages mood personal care

After the success of so-called mood foods (see Datamonitors Opportunities in Mood Foods & Boosting Mental

Performance: Consumer Attitudes and Behaviors Report [DMCM4664]), Cowshed has extended this concept to the realm

of personal care. Mood foods are defined by Datamonitor as "food or beverages claiming to uplift mood, boost mental

health or improve cognitive functions by stimulating neurotransmitters which carry nerve signals and messages throughout

the brain and the rest of the nervous system". Through its website, Cowshed now offers consumers ranges of personal

care products that aim to reflect the user's state of mind. The companys classification of six moods is detailed below in

Figure 1. Each range features around five products, typically including shower gel, body lotion, soap and candles, and

continues the bovine theme with the tongue-in-cheek brand reference to cows.

Cowshed Case Study



Figure 1: Cowsheds segmentation of its products by mood creates a more interactive experience for

consumers

Grumpy cow a range designed to lighten the mood. Grumpy cow products contain ingredients that can energise and uplift.

Horny cow a stimulating range to enhance romantic feelings. Sensual lotions and oils contain ingredients that heighten this mood.

Knackered cow comforting skincare products designed to help consumers unwind after a tiring day.

Lazy cow a selection with ingredients designed to assist relaxation. Lazy cow is aimed at consumers seeking moments of escape.

Moody cow stress management and reduction is the primary aim of this range. Products are designed to create a more harmonious vibe.

Wild cow a range designed to stimulate the body through a selection of invigorating natural ingredients.



















Source: Datamonitor analysis; Cowshed D A T A M O N I T O R

Personal care is a sector that benefits greatly from offering products that claim to improve the mood of consumers, with

consumers willing to maintain expenditure on products that can achieve this. Satisfaction with personal appearance breeds

self-confidence and is an important contributor to wellbeing, while the experiential aspects of personal care can positively

influence moods for many consumers, particularly women who remain the principal drivers of the market.

Cowshed Case Study



Cowshed distributes its products through selected channels

Cowshed has retained a professional and premium quality to its brand through a controlled distribution rollout. The

companys products are not available through mass-distribution outlets, while high end department stores and specialty

stores are preferred. Cowshed also operates a handful of its own branded shops, which offer treatments as well as

products to the public, while a comprehensive online ordering service is also operated by the company.

The so-called democratization of luxury saw many consumers seek professional salon-quality products for use in the

home and Cowshed has benefitted from this ideal. While the trend was originally prevalent before the global economic

downturn seen through 2008, the personal care industry has benefitted from consumers who are loath to change their

routines. By recreating a spa experience in the home, consumers will end up paying less, leading to a continuation of the

trend, which is now primarily motivated by a desire to reduce spending.

Cowshed has capitalized on the growing demand for natural personal care products over the past decade

Natural ingredients in personal care have become increasingly popular among consumers over the last 10 years. Much of

this trend has been fuelled by fears over synthetic ingredients along with the increased efficacy of natural products. Around

half of respondents to Datamonitors Consumer Survey of 2009 agreed that natural or organic ingredients are at least

important when considering skincare purchases, as illustrated in Figure 2, showing the popularity of the trend despite the

recession..

Figure 2: In 2009, a substantial portion of consumers around the world still find natural ingredients to be

important in skincare

QUESTION: How important are natural/organic ingredients in your choice of skincare products?

0%

5%

10%

15%

20%

25%

30%

35%

40%

Very important Important Neitherimportant norunimportant

Not important Veryunimportant

Perc

enta

ge o

f res

pond

ents

Source: Datamonitor Consumer Survey 2009 D A T A M O N I T O R

Cowshed Case Study



While further survey results in Figure 3 highlight that natural ingredients are only a mid-ranging factor in consumers

skincare choices, such considerations are clearly important to a significant proportion of consumers. The market for natural

products has grown from a niche status and edged closer to the mainstream. Any such move can make it more difficult to

operate in the market as companies find themselves under increased scrutiny and must ensure that their natural

credentials remain solid.

Figure 3: Natural ingredients rank as a mid-ranging factor overall in skincare, but this translates to a market

that has transcended niche status

QUESTION: How important are the following attributes in your choice of skincare products?

0%10%20%30%40%50%

60%70%80%

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Cowshed continues to source its ingredients from a walled garden at the original Babington House site, where the

appropriate plants are hand-picked for inclusion in products. This practice helps to lend the brand an air of authenticity,

which is important to companies offering natural products. Ethical credentials are demanded from such companies and

utilizing a responsible sourcing method will assist in this field.

Cowshed excludes certain types of ingredients from its products

Cowshed operates a No Nasties Policy, which identifies four groups of ingredients that are not included in products:

Cowshed Case Study



Parabens a popular preservative included in many personal care products to extend shelf-life. Parabens have

recently entered a decline in popularity over fears that they could act as a carcinogen, along with other ailments

such as skin irritation, contact dermatitis and rosacea. While declining in usage among some manufacturers,

parabens are still present in the vast majority of skincare products.

Sulfates used in personal care products primarily due to their advantages as foaming agents. However, such

ingredients can dry and irritate skin.

Petrochemicals present in many personal care products and linked to a range of potential ailments.

Petrochemicals are also criticized due to their production through non-renewable methods.

Artificial colors used exclusively to alter color and make a product more aesthetically pleasing to the

consumer. These substances are usually produced through synthetic methods and are often an environmental

concern due to the relatively long length of time they take to bio-degrade.

Parabens and petrochemicals have become a particular concern for many consumers, as illustrated by the survey results in

Figure 4 below. Paraben-free has become a valuable selling point in personal care, while fears over synthetic ingredients

have left natural products in a strong position to capitalize. Cowshed has addressed these needs by detailing the

ingredients it includes along with those that are left out.

The continuing success of natural ingredients has predictably raised suspicion among consumers as companies look to

exploit this trend. The lack of official regulation of the term natural has allowed many products to be labeled thus when

they only in fact contain 5% natural ingredients. However, Cowshed stresses the 100% natural credentials of its products in

order to gain the trust of increasingly cynical consumers who will actively investigate companies practices.

Cowshed Case Study



Figure 4: The inclusion of parabens and petrochemicals is of significant concern to many consumers

15%

24%

36%

13%12%

0%

5%

10%

15%

20%

25%

30%

35%

40%

Extremelyconcerned

Somew hatconcerned

Neither concernednor unconcerned

Not very concerned Not at all concerned

% o

f res

pond

ents

QUESTION: How concerned are you about the following factors relating to beauty products and your appearance? Which of the following statements best applies to

you? Parabens or petrochemicals used in formulation


Brand extensions and awards have assisted further expansion for Cowshed

Cowshed offers a male grooming range

The Cowshed Bullocks range serves as the male grooming section of the company, and continues the tongue-in-cheek

style of naming applied to its female range. While the male grooming market remains substantially less lucrative than the

equivalent womens market, it has certainly become established and many men use a variety of personal care products as

a matter of necessity.

One of the key aspects in the male grooming market is the pattern that sees men making regular purchases of products

only after they have originally been bought for them by a partner. Cowshed has covered this important facet of behavior

through the offering of travel and gym packs as explained in Figure 5 below. Such introductory offers can ensure repeat

purchases among men.

Cowshed Case Study



Figure 5: Cowsheds male grooming range features collections of products that could be purchased as gifts

for men

Cowsheds Bullocks range features the Pocket Cow Bullocks set. This collection features travel-size versions of four Cowshed male grooming products. This serves as an introduction to the range, while also offering gift potential. This is particularly important in male grooming where men will often grow to regularly purchase products that were originally bought for them as a gift.

Also available from Cowshed is the Bullocks Wash Bag. Similar to the Pocket set described above, the Wash Bag features smaller versions of Cowshed products, designed for use after a gym workout. This is another product that offers distinct gift appeal.

Source: Datamonitor analysis; Cowshed D A T A M O N I T O R

Makeovers and awards for some Cowshed products have helped the company grow

Cowshed has ensured that its product range is constantly updated. The company gave its product range an overhaul in

January 2006 when packaging received a makeover and certain product lines were updated. Previous mood products such

as Grubby, Cheeky and Poor have been replaced by others such as Wild, Moody and Horny, which were introduced in

August 2008.

In 2009, Cowshed products were honored at the Natural Health Magazine Awards. Body oil, shower gel and moisturizers

produced by Cowshed were named in the awards allowing the company to use this tag when marketing products. The

Natural Health magazine is a respected publication that advocates natural products for overall health and wellbeing. This

type of endorsement is valued by some consumers, who are more inclined to believe an independent publications

recommendation of a product or brand. The award from a specifically natural ingredients publication also helps to cement

the companys position in the market.

The continued success of Cowshed has allowed the company to expand its distribution and operate in countries outside the

UK. As of October 2009, Cowshed products were available in six countries. In the US, Cowshed products are available at

the Soho House hotel in New York, while the company offers a mail order service covering most states in this country. The

company also maintains distribution networks in Denmark, Spain, Sweden and Australia.

Cowshed Case Study



Conclusion: Natural ingredients can be successfully used by brands looking to promote a professional image

The success of Cowshed has been based on natural ingredients, which the company has continued to utilize over the past

decade. The company has been able to promote a professional salon-quality image through the continued operation of spa

facilities and a selective distribution program. This positioning demonstrates that companies utilizing natural ingredients can

gain a head start in the market by emphasizing professional status.

The mood segmentation employed by Cowshed is a sound strategy used in an industry that benefits from a strong

emotional connection between consumers and products. This approach is not one that can be copied directly by all brands

operating in the sector, but many companies could reap rewards from emphasizing this facet of the market.

Cowshed Case Study



APPENDIX

Case study series

This report forms part of Datamonitor's case studies series, which explores business practices across a variety of

disciplines and business sectors. The series covers a range of markets including food and drink, retail, banking and

insurance, pharmaceuticals and software.

Each case study provides a concise evaluation of a company that stands out in some area of its strategic operations,

highlighting the ways in which the company has become one of the best in its field or how it deals with different problems

encountered within that sector.

Methodology

A variety of secondary research was carried out for this case study. This included researching the personal care market on

Datamonitor's Market Data Analytics Database and the Product Launch Analytics Online Database of new products,

alongside an extensive review of secondary literature and other in-house sources of information.

Secondary sources

Cowshed brand milks Pearlfishers expertise; Cosmetics International (January 2006)

Further reading

Datamonitor, Natural Personal Care Consumers: Unlocking Future Potential, March 2007, DMCM4584

Datamonitor, Male Grooming Trends: Profiting in 2009 and Beyond, February 2009, DMCM4653

Datamonitor, Womens Personal Care Regimes and Needs, March 2009, DMCM4656

Ask the analyst

The Consumer Knowledge Center Writing team [email protected]

Datamonitor consulting

We hope that the data and analysis in this brief will help you make informed and imaginative business decisions. If you

have further requirements, Datamonitors consulting team may be able to help you. For more information about

Datamonitors consulting capabilities, please contact us directly at [email protected].

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Cowshed Case Study



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Cowshed Case Study