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Men‘s Segmentation
CONFIDENTIAL – L’OREAL USA
Media
Brand
Retail Product
Setting Strategy = Making Choices & Recalibrating
While some companies set strategies by first deciding which product or brands to sell or
perhaps which retail outlets to sell within, L’Oreal is deliberately setting strategy by first
choosing the key consumers that can best drive future growth
With this approach, our strategy will truly be a consumer-first strategy
Consumer
CONFIDENTIAL – L’OREAL USA
In doing this, we confirmed our expectation: not all men are created equal in male grooming
Trendy Innovators
Affluent Adopters
Polished Professionals
Active Independents
Curious Laggards
Content Laggards
% of Spend*
Spend Index
21% 37% 17% 11% 8% 6%
5% 9% 25% 20% 27% 15% % of Men
Low spend Average spend High spend
More Involved
in Male
Grooming
Less Involved
in Male
Grooming
4 In typical 3 months
420 411 68 55 29 40
Source: Ipsos 2012 A&U (G1. Please think about all of the products that you personally use. About how much did you spend n total for these products in the past 3 months?
CONFIDENTIAL – L’OREAL USA
The more highly involved groups rely on male grooming products to meet a broad set of needs
Trendy Innovators
5% men 21% spend
Affluent Adopters
9% men 37% spend
Polished Professionals
25% men 17% spend
Active Independents
20% men 11% spend
Curious Laggards 27% men 8% spend
Content Laggards 15% men 6% spend
90% 91% 92% 50% 71% 43%
75% 81% 43% 29% 18% 7%
94% 89% 95% 53% 80% 58%
76% 87% 48% 28% 20% 9%
81% 87% 72% 42% 60% 51%
77% 86% 63% 35% 33% 13%
87% 86% 82% 45% 66% 45%
79% 82% 37% 27% 10% 2%
% Agree – Reasons Why Men Use Personal Grooming Products
Source: Ipsos 2012 A&U (B2. Below are some reasons why men use personal grooming products. Using the scale below, please indicate
how much you agree or disagree that these are reasons why you, yourself use personal grooming products.)
Note: Cells 70% or higher are highlighted
Feel good w/ looks
Impress others
Look best
Change up look
Please partner
Feel secure
Look professional
Stand out
% of men % of spend
CONFIDENTIAL – L’OREAL USA
And they are also the ones most likely to invest time and energy into their grooming routines
Trendy Innovators
5% men 21% spend
Affluent Adopters
9% men 37% spend
Polished Professionals
25% men 17% spend
Active Independents
20% men 11% spend
Curious Laggards 27% men 8% spend
Content Laggards 15% men 6% spend
93% 94% 82% 21% 61% 33%
78% 93% 41% 18% 4% 0%
78% 93% 22% 15% 3% 1%
76% 93% 17% 16% 1% 1%
84% 90% 71% 20% 32% 15%
92% 90% 57% 20% 20% 5%
85% 89% 34% 16% 2% 0%
Look good effortlessly
Invest in grooming
Seek advice
Give advice
$ more on issues
Spice up my look
Try new products
% of Men Who Stated That The Following Statements Most Described Them
Note: Cells 70% or higher are highlighted
Source: Ipsos 2012 A&U (B5. People have different attitudes about personal grooming and personal grooming products. Please look at the statements below and indicate how much you agree or disagree with each.
% of men % of spend
CONFIDENTIAL – L’OREAL USA
In turn, higher rates of use are reflected in both the number of overall products and brands using
Trendy Innovators
5% men 21% spend
Affluent Adopters
9% men 37% spend
Polished Professionals
25% men 17% spend
Active Independents
20% men 11% spend
Curious Laggards 27% men 8% spend
Content Laggards 15% men 6% spend
12 14 11 8 8 7
20 22 18 12 11 9
# products1
# brands2
# of Products & Brands Used
1 In past 4 weeks; 2 In past year
Source: Ipsos 2012 A&U (A3. And which of the following types of products have you, yourself used in the past four weeks? E4. And which of these
brands of [INSERT CATEGORY] products have you used in the past year?
% of men % of spend
CONFIDENTIAL – L’OREAL USA
They are more likely to use styling, facial skincare and fragrance products.
Trendy Innovators
5% men 21% spend
Affluent Adopters
9% men 37% spend
Polished Professionals
25% men 17% spend
Active Independents
20% men 11% spend
Curious Laggards 27% men 8% spend
Content Laggards 15% men 6% spend
96% 94% 96% 92% 94% 92%
92% 86% 95% 88% 93% 92%
68% 64% 66% 55% 49% 38%
52% 54% 49% 31% 23% 15%
64% 64% 53% 38% 25% 15%
54% 57% 41% 28% 14% 7%
27% 41% 20% 11% 8% 5%
25% 30% 27% 14% 11% 6%
68% 61% 66% 44% 40% 31%
HAIR CARE & STYLING (94%)
Shampoo (92%)
Conditioner (55%)
Hair Styling (34%)
FACIAL SKINCARE (38%)
Cleanser/Scrub/Astringent (28%)
Moisturizer (15%)
All Other Facial Skincare (17%)
FRAGRANCE (49%)
% of Men Who Use the Following Products (past 4 weeks)
Note: Cells 120+ or <80 or higher are highlighted
Source: Ipsos 2012 A&U (A3. And which of the following types of products have you, yourself used in the past four weeks?)
% of men % of spend
CONFIDENTIAL – L’OREAL USA
They are also more likely to use body wash, body moisturizers and after-shave.
Trendy Innovators
5% men 21% spend
Affluent Adopters
9% men 37% spend
Polished Professionals
25% men 17% spend
Active Independents
20% men 11% spend
Curious Laggards 27% men 8% spend
Content Laggards 15% men 6% spend
94% 90% 99% 92% 97% 96%
74% 64% 74% 62% 76% 75%
79% 76% 70% 58% 47% 41%
38% 37% 44% 20% 22% 16%
97% 94% 98% 92% 97% 93%
93% 90% 97% 88% 94% 89%
57% 46% 65% 44% 51% 45%
48% 41% 43% 26% 28% 19%
7% 19% 3% 2% 1% 0%
BODY CARE (96%)
Bar Soap (71%)
Body Wash (58%)
Body Moisturizer/Lotion (28%)
SHAVING AND BEARD (95%)
Any Razor (92%)
Shaving Cream (52%)
After-Shave (32%)
Razorless Hair Removal (e.g Nair) (4%)
% of Men Who Use the Following Products (past 4 weeks)
Note: Cells 120+ or <80 or higher are highlighted
Source: Ipsos 2012 A&U (A3. And which of the following types of products have you, yourself used in the past four weeks?)
% of men % of spend
CONFIDENTIAL – L’OREAL USA
TRENDY INNOVATORS (5% of men pop/ 21% spend)
He aspires to have the latest and greatest, the Trendy Innovator is in the know and wants his
appearance to make a statement and put him on the cutting edge.
Nick is 32 years old and lives North Buckhead, just
outside of Downtown Atlanta, which it isn’t too far from
his offices at Deloitte where he is a Computer Software
Manager.
He lives in a 3 bedroom house with his wife and 2 year
old which is walking distance to Little Nancy Creak Park,
where he enjoys working out and playing basketball.
He cares about how he looks, both physically and in
grooming, but does not want to look like he is trying too
hard. It’s important to him to look professional and at his
best as well as appear attractive to his wife.
He enjoys shopping and changing up his look and is
always on the look out for great new grooming products
and wanting to be the first to try a new product.
CONFIDENTIAL – L’OREAL USA
14%
22%
35%
29%
10-250K 250-1M 1M-5M 5M +
10%
32% 33%
13% 12%
18-24 25-34 35-44 45-54 55-64
Tend to skew younger, married, skew Hispanic and AA, and slightly toward living in bigger cities
Fam
ily D
ynam
ics
Age
Ran
ge
Size
of
Ho
me
Cit
y
Avg. Age: 38 (all men: 45)
Trendy Innovators
11%
58%
85%
Not Heterosexual Married 2+ HH Size
Source: Ipsos 2012 A&U (AGE. What is your age? ZIP. What is your 5-digit ZIP code? USMAR2. What is your marital status? USRETH2. Are you of Hispanic, Latino or Spanish origin? USRACE3. What is your race?)
All Men Trendy Innovators
Eth
nic
ity
/ R
ace
63%
24% 7% 4%
White Hispanic AA Asian
CONFIDENTIAL – L’OREAL USA
20%
43%
14% 12% 13%
< $35K $35-75K $75-100K $100-150K $150K +
They tend toward average income, exercise frequently and are more apt to dress formally for work.
HH
Inco
me
Wo
rk D
ress
Co
de
Avg. Income: 80K (all men: 75K)
All Men Trendy Innovators
38%
33%
5%
24%
Biz Casual Casual Uniform Formal
Source: Ipsos 2012 A&U (USHHI2. Please indicate your annual household income before taxes. OTHER3A. How often do you exercise or participate in an athletic activity?) US32EMP. Which of the following best describes your employment status? WORK4. Would you describe the dress code at your job as . . .?)
Trendy Innovators
Exe
rcis
e
14% 16%
34% 36%
< 2 / mo 1 -2 / wk 3 - 6 / wk 1 / day +
CONFIDENTIAL – L’OREAL USA
They are frequent product users, especially styling, fragrance and skincare
Used 1+ in Past 4 Weeks Use Every Day
All Men
Trendy Innovators All Men
Trendy Innovators
Hair Care & Styling 94% 96% 65% 77%
Shampoo 92% 92% 61% 70%
Conditioner 55% 68% 30% 46%
Hair Styling 34% 52% 22% 41%
Facial Skincare 38% 64% 26% 52%
Cleanser/Scrub/Astringent 28% 54% 20% 43%
Moisturizer 15% 27% 11% 28%
Other Facial Skincare 17% 25% 9% 17%
Fragrance 49% 68% 31% 56%
Note: Cells with Indices of 120+ are highlighted
12.1 Avg. Products Used
Source: Ipsos 2012 A&U (A3. And which of the following types of products have you, yourself used in the past four weeks? A4. How often do you use each of the following types of products?)
Trendy Innovators
CONFIDENTIAL – L’OREAL USA
They skew toward daily usage of body care and shaving products
Used 1+ in Past 4 Weeks Use Every Day
All Men
Trendy Innovators All Men
Trendy Innovators
Deodorant 91% 87% 80% 82%
Body Care 96% 94% 77% 87%
Body Wash 58% 79% 38% 63%
Bar Soap 71% 74% 55% 58%
Body Moisturizer / Lotion 28% 38% 19% 35%
Shaving & Beard 95% 97% 45% 62%
Any Razor 92% 93% 41% 54%
Shaving Cream 52% 57% 21% 32%
After-Shave 32% 48% 16% 33%
Razorless Hair Remover 4% 7% 2% 2%
12.1 Avg. Products Used
Trendy Innovators
Note: Cells with Indices of 120+ are highlighted
Source: Ipsos 2012 A&U (A3. And which of the following types of products have you, yourself used in the past four weeks? A4. How often do you use each of the following types of products?)
CONFIDENTIAL – L’OREAL USA
These men generally tend toward mass/upper mass brands, some Luxe and Professional and are the biggest Axe users
Hair Deodorant Shaving Body Face Fragrance
Source: Ipsos 2012 A&U (E4. And which of these brands of [INSERT CATEGORY] products have you used in the past year?)
Top 7 Over-Indexing Brands in terms of Past Year Usage, by Product Category*
* Fewer brands shown if less than 7 significantly over-index (80% CL)
Trendy Innovators
19.9 Avg. Brands Used
CONFIDENTIAL – L’OREAL USA
They are not only using social media and smart phones, they are using them to interact with and shop for products
How They Consume Media
26%
32%
61%
36%
38%
60%
70%
85%
Read local paper
Read men's magazines
Watch Fox
Watch CNN
Use YouTube
Own smartphone
Use Facebook
Use any social media
Depth of Media Involvement
Avg hrs/week browsing social media=6.4 (vs. 4.4 for all men)
26%
29%
45%
33%
72%
Used coupon onSmartphone
Purchased product witha Smartphone
Visited a brand’s Facebook page
Posted about brand/product on Facebook
“Liked” a brand on Facebook
Source: Ipsos 2012 A&U (M1. Which of the following do you own? M2. Which of these websites and social networking sites, if any, are you currently a member of? M4. What types of magazines do you typically read (either print or online)? M4a. And what newspapers do you typically read (either online or a hard copy)? M2a. Which of the following have you ever done? M3. And, which of the following have you, yourself, done (at home, at work, or elsewhere) during the past 30 days using each of the devices below? M3b. How many hours a week do you spend on social networking sites like Facebook and Twitter?)
Trendy Innovators All Men Trendy Innovators
CONFIDENTIAL – L’OREAL USA
They enjoy shopping and are the most active online shoppers, like searching for new products and wiling to pay for premium/specialty
Where They Shop Attitudes about Shopping*
12%
4%
13%
15%
13%
27%
32%
35%
41%
70%
93%
Active/Sporting Goods Stores
Salon/Spa/Barbershop
Fine Department Stores
Apparel Stores
Specialty Stores
Traditional Department Stores
Discount Department Stores
Internet/Online
Supermarkets / Grocery Stores
Drug Stores
Mass Merchandise Stores
39
48
44
52
51
51
53
54
59
57
First to try new products
Search for new/different products
Willing to pay more forrecommended products
Shopping is enjoyable for me
Name brands are worth the extraprice
Only go to stores with best qualityproducts
Like variety of products available
Look for healthy products
Willing to pay more forpremium/specialty products
I enjoy taking my time when Ishop
*Expressed as max diff utility scores, defined as the “value” consumers place on a given attribute relative to other attributes being rated. They represent the probability that a given attribute will be selected compared to others.
Source: Ipsos 2012 A&U (C5. Where have you or someone else (for you) shopped for the personal grooming products that you use in the past year?
SECTION H: Next, you will be shown a series of different statements that may or may not describe your shopping behavior. For each set of statements, choose the one that MOST describes you and the one that LEAST describes you.)
Trendy Innovators All Men Trendy Innovators
CONFIDENTIAL – L’OREAL USA
AFFLUENT ADOPTERS (9% of men / 37% of spend)
He wants the best so he can be the best and is not willing to make any sacrifices when investing in himself.
Tyler is 29 years old, just finished up his MBA from
Columbia and works in Finance for NBC Universal.
Recently engaged, Tyler rents a duplex in Tribeca with
his fiancée. They pride themselves on being among the
first to try hot new restaurants and nightclubs.
Tyler is very driven and success is something he expects
and does what is necessary to achieve it. He is a member
of several professional organizations and active in
alumni activities for Columbia.
Keeping up physically and visually is very important to
him. He is at Equinox every morning at 6:00am before
going into the office. When he wants to relax, he will
indulge with a trip to spa or a good competitive game of
basketball.
Tyler enjoys giving advice about what products to use
and aspires to be the “resident expert”, but stays very
conscious of what others think of him and does not
want to seem like he is trying too hard to look good.
He enjoys shopping and shops at many specialty and high
end stores. CONFIDENTIAL – L’OREAL USA
... tend to be younger, married men living in big cities and are disproportionately ethnic
Affluent Adopters
All Men Affluent Adopters
Fam
ily D
ynam
ics
Age
Ran
ge
Eth
nic
ity
/ R
ace
Si
ze o
f H
om
e C
ity
Avg. Age: 36 (all men: 45)
13% 18%
27%
42%
10-250K 250-1M 1M-5M 5M +
8%
43%
30%
14%
4%
18-24 25-34 35-44 45-54 55-64
12%
66%
92%
Not Heterosexual Married 2+ HH Size
58%
23% 12% 7%
White Hispanic AA Asian
Source: Ipsos 2012 A&U (AGE. What is your age? ZIP. What is your 5-digit ZIP code? USMAR2. What is your marital status? USRETH2. Are you of Hispanic, Latino or Spanish origin? USRACE3. What is your race?)
CONFIDENTIAL – L’OREAL USA
And are much wealthier, more likely to dress formally and exercise regularly
HH
Inco
me
Wo
rk D
ress
Co
de
13%
18% 19% 18%
31%
< $35K $35-75K $75-100K $100-150K $150K +
Avg. Income: 124K (all men: 75K)
31%
24%
11%
34%
Biz Casual Casual Uniform Formal
All Men Affluent Adopters
Source: Ipsos 2012 A&U (USHHI2. Please indicate your annual household income before taxes. USEDU2. What is the highest degree or level of school you have completed? US32EMP. Which of the following best describes
your employment status? WORK4. Would you describe the dress code at your job as . . .?)
Affluent Adopters
Exe
rcis
e
16% 10%
36% 38%
< 2 / mo 1 -2 / wk 3 - 6 / wk 1 / day +
CONFIDENTIAL – L’OREAL USA
They are frequent users of styling, facial skincare and fragrance products
Used 1+ in Past 4 Weeks Use Every Day
All Men
Affluent Adopters All Men
Affluent Adopters
Hair Care & Styling 94% 94% 65% 73%
Shampoo 92% 86% 61% 65%
Conditioner 55% 64% 30% 49%
Hair Styling 34% 54% 22% 45%
Facial Skincare 38% 64% 26% 53%
Cleanser/Scrub/Astringent 28% 57% 20% 48%
Moisturizer 15% 41% 11% 34%
Other Facial Skincare 17% 30% 9% 23%
Fragrance 49% 61% 31% 44%
13.9 Avg. Products Used
Note: Cells with Indices of 120+ are highlighted
Source: Ipsos 2012 A&U (A3. And which of the following types of products have you, yourself used in the past four weeks? A4. How often do you use each of the following types of products?)
Affluent Adopters
CONFIDENTIAL – L’OREAL USA
Used 1+ in Past 4 Weeks Use Every Day
All Men
Affluent Adopters All Men
Affluent Adopters
Deodorant 91% 82% 80% 71%
Body Care 96% 90% 77% 77%
Body Wash 58% 76% 38% 60%
Bar Soap 71% 64% 55% 54%
Body Moisturizer / Lotion 28% 37% 19% 28%
Shaving & Beard 95% 94% 45% 61%
Any Razor 92% 90% 41% 53%
Shaving Cream 52% 46% 21% 30%
After-Shave 32% 41% 16% 33%
Razorless Hair Remover 4% 19% 2% 13%
These men tend to be daily users of body care and shaving products
13.9 Avg. Products Used
Affluent Adopters
Note: Cells with Indices of 120+ are highlighted
Source: Ipsos 2012 A&U (A3. And which of the following types of products have you, yourself used in the past four weeks? A4. How often do you use each of the following types of products?)
CONFIDENTIAL – L’OREAL USA
Top 7 Over-Indexing Brands in terms of Past Year Usage, by Product Category
These men use upper mass brands but are more involved with smaller, niche brands across categories & channels
Hair Deodorant Shaving Body Face Fragrance
Source: Ipsos 2012 A&U (E4. And which of these brands of [INSERT CATEGORY] products have you used in the past year?)
Affluent Adopters
22.0 Avg. Brands Used
CONFIDENTIAL – L’OREAL USA
They are big users of social media and smartphones and interact with brands there
Depth of Media Involvement
13%
29%
42%
51%
52%
54%
71%
95%
Read local paper
Read men's magazines
Watch Fox
Watch CNN
Use YouTube
Own smartphone
Use Facebook
Use any social media
How They Consume Media
32%
31%
50%
43%
74%
Used coupon onSmartphone
Purchased product witha Smartphone
Visited a brand’s Facebook page
Posted about brand/product on Facebook
“Liked” a brand on Facebook
Avg hrs/week browsing social media=8.8 (vs. 4.4 for all men)
Source: Ipsos 2012 A&U (M1. Which of the following do you own? M2. Which of these websites and social networking sites, if any, are you currently a member of? M4. What types of magazines do you typically read (either print or online)? M4a. And what newspapers do you typically read (either online or a hard copy)? M2a. Which of the following have you ever done? M3. And, which of the following have you, yourself, done (at home, at work, or elsewhere) during the past 30 days using each of the devices below? M3b. How many hours a week do you spend on social networking sites like Facebook and Twitter?)
Affluent Adopters All Men Affluent Adopters
CONFIDENTIAL – L’OREAL USA
The enjoy shopping. They frequent specialty, department stores, and salons, value/willing to pay more for quality
Where They Shop Attitudes about Shopping*
14%
12%
21%
24%
21%
29%
27%
27%
52%
67%
92%
Active/Sporting Goods Stores
Salon/Spa/Barbershop
Fine Department Stores
Apparel Stores
Specialty Stores
Traditional Department Stores
Discount Department Stores
Internet/Online
Supermarkets / Grocery Stores
Drug Stores
Mass Merchandise Stores
All Men Affluent Adopters
38
34
36
47
45
46
52
51
50
56
51
First to try new products
Ambience over price
Like to shop with someone I trust
Like new and different products
Pay more for products that wererecommended
Shopping is enjoyable for me
Name brands are worth the extraprice
Only go to stores that have thebest quality products
Like variety of product availabile
Willing to pay more forpremium/specialty products
I enjoy taking my time when Ishop
*Expressed as max diff utility scores, defined as the “value” consumers place on a given attribute relative to other attributes being rated. They represent the probability that a given attribute will be selected compared to others.
Affluent Adopters
Source: Ipsos 2012 A&U (C5. Where have you or someone else (for you) shopped for the personal grooming products that you use in the past year?
SECTION H: Next, you will be shown a series of different statements that may or may not describe your shopping behavior. For each set of statements, choose the one that MOST describes you and the one that LEAST describes you.)
CONFIDENTIAL – L’OREAL USA
POLISHED PROFESSIONAL (25% of men / 17% of spend)
Ben is 45 years old and lives just outside of Denver in a
townhome.
He has been in real estate for 15 years and works
primarily with luxury real estate for the downtown area.
He works out 3-4 times a week in order to maintain a
youthful physique and appear attractive to women.
Being healthy is important to him and he enjoys an
active social life and loves how Denver caters to the
active, single professional.
As he is getting older, looking young and feeling
confident are why he is conscious of exercising and
grooming. Ben considers taking care of himself to be a
top priority.
He likes to balance traditional mass brands with
established high-end brands in his routine and they all
must be effective and work for him, especially for his
skincare and fragrance products.
He is clean cut, settled and will be in the early majority following the trends to keep up with his
colleagues but is never over the top in his style or grooming. He turns to grooming products as a way to
maintain a youthful appearance.
CONFIDENTIAL – L’OREAL USA
They are of average age, likely to live in medium size cities, and with slight Hispanic and AA skews
Fam
ily D
ynam
ics
Age
Ran
ge
Size
of
Ho
me
Cit
y
Avg. Age: 43 (all men: 45)
8%
18%
23%
31%
19%
18-24 25-34 35-44 45-54 55-64
Polished Professionals
12%
45%
79%
Not Heterosexual Married 2+ HH Size
15% 20%
39%
27%
10-250K 250-1M 1M-5M 5M +
Source: Ipsos 2012 A&U (AGE. What is your age? ZIP. What is your 5-digit ZIP code? USMAR2. What is your marital status? USRETH2. Are you of Hispanic, Latino or Spanish origin? USRACE3. What is your race?)
All Men Polished Professionals
Eth
nic
ity
/ R
ace
77%
11% 8% 3%
White Hispanic AA Asian
CONFIDENTIAL – L’OREAL USA
19%
36%
19%
14%
8%
< $35K $35-75K $75-100K $100-150K $150K +
Average income and exercise often but not daily.
HH
Inco
me
Wo
rk D
ress
Co
de
Avg. Income: 76K (all men: 75K)
42% 37%
12% 9%
Biz Casual Casual Uniform Formal
Source: Ipsos 2012 A&U (USHHI2. Please indicate your annual household income before taxes. USEDU2. What is the highest degree or level of school you have completed? US32EMP. Which of the following best describes
your employment status? WORK4. Would you describe the dress code at your job as . . .?)
Polished Professionals
All Men Polished Professionals
Exe
rcis
e
21% 20%
41%
18%
< 2 / mo 1 -2 / wk 3 - 6 / wk 1 / day +
CONFIDENTIAL – L’OREAL USA
They skew toward frequent use of most products, especially fragrance.
Used 1+ in Past 4 Weeks Use Every Day
All Men
Polished Professionals All Men
Polished Professionals
Hair Care & Styling 94% 96% 65% 73%
Shampoo 92% 95% 61% 67%
Conditioner 55% 66% 30% 38%
Hair Styling 34% 49% 22% 32%
Facial Skincare 38% 53% 26% 38%
Cleanser/Scrub/Astringent 28% 41% 20% 30%
Moisturizer 15% 20% 11% 15%
Other Facial Skincare 17% 27% 9% 13%
Fragrance 49% 66% 31% 45%
11.2 Avg. Products Used
Polished Professionals
Note: Cells with Indices of 120+ are highlighted
Source: Ipsos 2012 A&U (A3. And which of the following types of products have you, yourself used in the past four weeks? A4. How often do you use each of the following types of products?)
CONFIDENTIAL – L’OREAL USA
They are regular users of body care and shaving products
Used 1+ in Past 4 Weeks Use Every Day
All Men
Polished Professionals All Men
Polished Professionals
Deodorant 91% 94% 80% 89%
Body Care 96% 99% 77% 85%
Body Wash 58% 70% 38% 50%
Bar Soap 71% 74% 55% 59%
Body Moisturizer / Lotion 28% 44% 19% 29%
Shaving & Beard 95% 98% 45% 50%
Any Razor 92% 97% 41% 45%
Shaving Cream 52% 65% 21% 29%
After-Shave 32% 43% 16% 21%
Razorless Hair Remover 4% 3% 2% 1%
Note: Cells with Indices of 120+ are highlighted
11.2 Avg. Products Used
Source: Ipsos 2012 A&U (A3. And which of the following types of products have you, yourself used in the past four weeks? A4. How often do you use each of the following types of products?)
Polished Professionals
CONFIDENTIAL – L’OREAL USA
They balance traditional and upper mass brands, as well as designer fragrances and professional hair care
Hair Deodorant Shaving Body Face Fragrance
Source: Ipsos 2012 A&U (E4. And which of these brands of [INSERT CATEGORY] products have you used in the past year?)
Top 7 Over-Indexing Brands in terms of Past Year Usage, by Product Category*
* Fewer brands shown if less than 7 significantly over-index (80% CL)
Polished Professionals
18.1 Avg. Brands Used
CONFIDENTIAL – L’OREAL USA
They are active media consumers but involvement is at average levels
How They Consume Media
52%
28%
63%
32%
43%
57%
76%
86%
Read local paper
Read men's magazines
Watch Fox
Watch CNN
Use YouTube
Own smartphone
Use Facebook
Use any social media
Depth of Media Involvement
Avg hrs/week browsing social media=4.5 (vs. 4.4 for all men)
23%
20%
52%
25%
65%
Used coupon onSmartphone
Purchased product witha Smartphone
Visited a brand’s Facebook page
Posted about brand/product on Facebook
“Liked” a brand on Facebook
Source: Ipsos 2012 A&U (M1. Which of the following do you own? M2. Which of these websites and social networking sites, if any, are you currently a member of? M4. What types of magazines do you typically read (either print or online)? M4a. And what newspapers do you typically read (either online or a hard copy)? M2a. Which of the following have you ever done? M3. And, which of the following have you, yourself, done (at home, at work, or elsewhere) during the past 30 days using each of the devices below? M3b. How many hours a week do you spend on social networking sites like Facebook and Twitter?)
Polished Professionals All Men Polished Professionals
CONFIDENTIAL – L’OREAL USA
They frequent traditional, discount department stores, professional salons and aren’t afraid to spend for special concerns
Where They Shop Attitudes about Shopping*
5%
11%
10%
8%
11%
27%
23%
24%
48%
63%
86%
Active/SportingGoods Stores
Salon/Spa/Barbershop
Fine Department Stores
Apparel Stores
Specialty Stores
Traditional Department Stores
Discount Department Stores
Internet/Online
Supermarkets / Grocery Stores
Drug Stores
Mass Merchandise Stores
32
46
46
45
50
55
55
55
60
66
73
Search for new/diff products
Shopping is enjoyable for me
Name brands are worth the extraprice
Only go to stores with best qualityproducts
Like variety of products available
Willing to pay more forpremium/specialty products
I enjoy taking my time when Ishop
Go out of way to store with wideselection
Well known brands moretrustworthy
Pay $ for specific needs
Like stores with men's aisle
*Expressed as max diff utility scores, defined as the “value” consumers place on a given attribute relative to other attributes being rated. They represent the probability that a given attribute will be selected compared to others.
Source: Ipsos 2012 A&U (C5. Where have you or someone else (for you) shopped for the personal grooming products that you use in the past year?
SECTION H: Next, you will be shown a series of different statements that may or may not describe your shopping behavior. For each set of statements, choose the one that MOST describes you and the one that LEAST describes you.)
Polished Professionals All Men Polished Professionals
CONFIDENTIAL – L’OREAL USA
ACTIVE INDEPENDENTS (20% of men / 11% of spend)
As a rugged and laid back guy, he isn’t going to keep up on what’s the latest and greatest – he needs a
simple routine that isn’t going to slow him down or hold him back.
Josh is 38 and just moved into a new apartment in
the Lincoln Park area of Chicago.
He works in Ecommerce for Kraft Foods. On the
weekends, he bartends at a local sports bar
close to Wrigley Field to meet people but also
make some extra money on the side.
If someone calls him up to go out, head to a
baseball game, go out on the lake – you name it,
Josh is the first one to join and he is constantly
on the go.
He isn’t particularly interested in settling down
or starting a family quite yet. He is enjoying his
freedom and is laid back about the future.
Josh is budget conscious overall and also in
his grooming purchases. He is apathetic
towards grooming and uses the basics across
all categories.
CONFIDENTIAL – L’OREAL USA
10%
22% 25% 24%
19%
18-24 25-34 35-44 45-54 55-64
Average age, tend toward larger cities, less likely to be married, skew Asian
Fam
ily D
ynam
ics
Age
Ran
ge
Eth
nic
ity
/ R
ace
Si
ze o
f H
om
e C
ity
Avg. Age: 42 (all men: 45)
All Men Active Independents
Active Independents
8%
47%
75%
Not Heterosexual Married 2+ HH Size
15% 13%
39% 32%
10-250K 250-1M 1M-5M 5M +
Source: Ipsos 2012 A&U (AGE. What is your age? ZIP. What is your 5-digit ZIP code? USMAR2. What is your marital status? USRETH2. Are you of Hispanic, Latino or Spanish origin? USRACE3. What is your race?)
77%
9% 3% 7%
White Hispanic AA Asian
CONFIDENTIAL – L’OREAL USA
25%
35%
15% 14%
7%
< $35K $35-75K $75-100K $100-150K $150K +
Moderate income, tend toward casual/ business casual work style
HH
Inco
me
Wo
rk D
ress
Co
de
Avg. Income: 71K (all men: 75K)
39% 37%
14% 11%
Biz Casual Casual Uniform Formal
Source: Ipsos 2012 A&U (USHHI2. Please indicate your annual household income before taxes. USEDU2. What is the highest degree or level of school you have completed? US32EMP. Which of the following best describes
your employment status? WORK4. Would you describe the dress code at your job as . . .?)
Active Independents
All Men Active Independents
Exe
rcis
e
26%
15%
39%
20%
< 2 / mo 1 -2 / wk 3 - 6 / wk 1 / day +
CONFIDENTIAL – L’OREAL USA
They use products with average frequency
Used 1+ in Past 4 Weeks Use Every Day
All Men
Active Independents All Men
Active Independents
Hair Care & Styling 94% 92% 65% 65%
Shampoo 92% 88% 61% 60%
Conditioner 55% 55% 30% 30%
Hair Styling 34% 31% 22% 21%
Facial Skincare 38% 38% 26% 24%
Cleanser/Scrub/Astringent 28% 28% 20% 19%
Moisturizer 15% 11% 11% 8%
Other Facial Skincare 17% 14% 9% 8%
Fragrance 49% 44% 31% 29%
8.3 Avg. Products Used
Note: Cells with Indices of 120+ are highlighted
Source: Ipsos 2012 A&U (A3. And which of the following types of products have you, yourself used in the past four weeks? A4. How often do you use each of the following types of products?)
Active Independents
CONFIDENTIAL – L’OREAL USA
They are less likely to be using Body Moisturizer
Used 1+ in Past 4 Weeks Use Every Day
All Men
Active Independents All Men
Active Independents
Deodorant 91% 84% 80% 75%
Body Care 96% 92% 77% 70%
Body Wash 58% 58% 38% 37%
Bar Soap 71% 62% 55% 48%
Body Moisturizer / Lotion 28% 20% 19% 14%
Shaving & Beard 95% 92% 45% 42%
Any Razor 92% 88% 41% 40%
Shaving Cream 52% 44% 21% 19%
After-Shave 32% 26% 16% 13%
Razorless Hair Remover 4% 2% 2% 1%
Note: Cells with Indices of 120+ and <80 are highlighted
8.3 Avg. Products Used
Source: Ipsos 2012 A&U (A3. And which of the following types of products have you, yourself used in the past four weeks? A4. How often do you use each of the following types of products?)
Active Independents
CONFIDENTIAL – L’OREAL USA
They skew toward traditional mass market brands across categories
Hair Deodorant Shaving Body Face Fragrance
Source: Ipsos 2012 A&U (E4. And which of these brands of [INSERT CATEGORY] products have you used in the past year?)
Top 7 Over-Indexing Brands in terms of Past Year Usage, by Product Category*
* Fewer brands shown if less than 7 significantly over-index (80% CL)
Active Independents
11.9 Avg. Brands Used
CONFIDENTIAL – L’OREAL USA
Average involvement with social media and not very engaged with products and brands in the social space
Depth of Media Involvement How They Consume Media
37%
16%
54%
23%
36%
41%
69%
82%
Read local paper
Read men's magazines
Watch Fox
Watch CNN
Use YouTube
Own smartphone
Use Facebook
Use any social media
Avg hrs/week browsing social media=5.3 (vs. 4.4 for all men)
14%
18%
37%
20%
62%
Used coupon onSmartphone
Purchased product witha Smartphone
Visited a brand’s Facebook page
Posted about brand/product on Facebook
“Liked” a brand on Facebook
Source: Ipsos 2012 A&U (M1. Which of the following do you own? M2. Which of these websites and social networking sites, if any, are you currently a member of? M4. What types of magazines do you typically read (either print or online)? M4a. And what newspapers do you typically read (either online or a hard copy)? M2a. Which of the following have you ever done? M3. And, which of the following have you, yourself, done (at home, at work, or elsewhere) during the past 30 days using each of the devices below? M3b. How many hours a week do you spend on social networking sites like Facebook and Twitter?)
All Men Active Independents Active Independents
CONFIDENTIAL – L’OREAL USA
They shop the typical channels and are price sensitive deal hunters.
Where They Shop Attitudes about Shopping*
8%
4%
7%
9%
8%
15%
20%
15%
43%
49%
77%
Active/Sporting Goods Stores
Salon/Spa/Barbershop
Fine Department Stores
Apparel Stores
Specialty Stores
Traditional Department Stores
Discount Department Stores
Internet/Online
Supermarkets / Grocery Stores
Drug Stores
Mass Merchandise Stores
28
29
30
39
47
51
55
56
59
66
Get overwhelmed by too manychoices
Prefer to shop alone
Search for new/different products
Often buy store brands instead ofname brands
Willing to give up quality forbetter price
Will switch if another brand ischeaper
Annoyed if miss out on a deal
Will go out of my way to get bestdeals
Wait to buy product on sale
Use coupons to save money
All Men Active Independents
*Expressed as max diff utility scores, defined as the “value” consumers place on a given attribute relative to other attributes being rated. They represent the probability that a given attribute will be selected compared to others.
Source: Ipsos 2012 A&U (C5. Where have you or someone else (for you) shopped for the personal grooming products that you use in the past year?
SECTION H: Next, you will be shown a series of different statements that may or may not describe your shopping behavior. For each set of statements, choose the one that MOST describes you and the one that LEAST describes you.)
Active Independents
CONFIDENTIAL – L’OREAL USA
CURIOUS LAGGARDS (27% of men / 8% of spend)
The Curious Laggards are conservative and tend to stick with the practical but are receptive to grooming
advice and becoming a better version of themselves.
Mike is 50 years old and lives in suburban Detroit
with his wife. They just sent their last kid off to
college and are adjusting to a quieter lifestyle.
He works in a car manufacturing facility and has
had a productive career and is content in where he’s
at in his career today.
On the weekends, he and is wife enjoy drinking
wine and catching up on their favorite TV shows.
He enjoys running on the treadmill at the gym or
going for leisurely walks with his wife to relieve
stress and to stay fit, while he is constantly
checking things off of his to-do list.
He uses the grooming basics and doesn’t not
want to spend a lot of time shopping as it is just a
necessity or wants to research what to use. His
wife will sometimes pick him up something if she
notices he’s about it run out of essentials and he’s
willing to give it a try to add to his basic
regimen.
CONFIDENTIAL – L’OREAL USA
CONTENT LAGGARDS The content laggard is comfortable with who he is and sees the grooming process as an unnecessary
addition to a man’s life. They use the necessary basics but are comfortable and happy with their
appearance.
Tom is 58 years old and lives in a suburb of
Minneapolis with his wife. He is recently retired and
is loving a slower paced life.
He is enjoying what retirement has to offer and likes
reading, catching up with family and quiet nights at
home.
Tom has little to no interest in keeping up his
appearance or grooming. He uses the necessary
basics but nothing extra.
Tom is content with life as is and is looking forward to
continuing his life of leisure.
He is very traditional and doesn’t believe that men
need to have an expansive grooming regimen.
Shopping for Tom is for necessity purposes only and
not an experience that he enjoys.
STORE BRAND
CONFIDENTIAL – L’OREAL USA
Summary Recap
CONFIDENTIAL – L’OREAL USA
Men’s Insights: Segmentation Summary Trendy
Innovators Affluent Adopters
Polished Professionals
Active Independents
Curious Laggards
Content Laggards
Mo
re In
volv
ed
Less In
volve
d
5% 9% 25% 20% 27% 15% % Men
21% 37% 17% 11% 8% 6% % Spend
# Product 12.1 13.9 11.2 8.3 7.8 6.7
Products
Use all products Overindexes on:
• Conditioner • Styling • Facial Skincare • Fragrance • Body Wash • Body Moisturizer • After-Shave • Razorless Hair Removal
Use all products Overindexes on:
• Conditioner • Styling • Facial Skincare • Fragrance • Body Wash • Body Moisturizer • After-Shave • Razorless Hair Removal
Use all products Overindexes on:
• Conditioner • Styling • Facial Skincare • Fragrance • Body Wash • Body Moisturizer • Shaving Cream • After-Shave
Use all products but Underindex on: • Body Moisturizer
Use all products but Underindex on: • Styling • Facial Skincare
Use all products but Underindex on: • Conditioner • Styling • Facial Skincare • Fragrance • Body Wash • Body Moisturizer • After-Shave
# Brands 19.9 22.0 18.1 11.9 11.2 9.0
Mass
• Axe • Garnier • Nivea • Drakkar Noir
• Nivea • L’Oreal Paris • Gillette • Magic
• Gillette • Right Guard • Neutrogena • Suave • Garnier
• Old Spice • Axe • Pert Plus • Drakkar Noir
• Suave • Speed Stick • Old Spice • Barbasol • Irish Spring • Store Brand • Stetson
• Suave • Head & Shoulders • Speed Stick • Old Spice • Barbasol • Irish Spring • Store Brand • Stetson
Luxe
• Ralph Lauren • Giorgio Armani • Dolce & Gabbana • Anthony Logistics • Lab Series for Men
• Acqua di Parma • Burberry • Giorgio Armani • Ralph Lauren • Kiehl’s, • Anthony Logistics • Art of Shaving
• Giorgio Armani • Ralph Lauren • Clinique
• Calvin Klein
Prof • American Crew
• American Crew
• John Frieda • Paul Mitchell • American Crew
Source: Ipsos 2012 A&U (G1. Please think about all of the products that you personally use.
About how much did you spend n total for these products in the past 3 months?
CONFIDENTIAL – L’OREAL USA
Key Takeaways • All men are not created equally….in grooming. Know Your Consumer.
• 6 distinct segments of men from high to low engagement & involvement
– Opportunity Today: 2 segments, Trendy Innovators & Affluent Adopters – 14% of men’s population and 58% of the spend
– Where majority of L’Oreal brands target
– Opportunity Mid and Long Term: Polished Professionals and Active Independents – 45% of men’s population and 28% of the spend, tipping point segments
– Where majority of L’Oreal brands do not target
• Focused Development & Execution: Target your Consumer, Think right Product,
Communicated in right way and the right Places
– Rethink how to to find, educate, and engage with men today (media or retail).
– Be creative, use digital new Path to Purchase
CONFIDENTIAL – L’OREAL USA
Next Steps
This is just the beginning….
1. Setup workshop to review learnings, action plans associated with segmentation for respective businesses
2. Leverage type-in tool to help initially screen for target segments for consumer research and development of new products
3. Activating segmentation to reach target segments
CONFIDENTIAL – L’OREAL USA