Analyzed the status of Kiehl’s: - SWOT analysis of the Kiehl’s brand when it comes to male beauty products - Business performance - Products (packaging, visuals, ranges, geography, claims, USP ) - Market share and ranking - Positioning and image - Pricing - Consumers - PR & Digital strategy - Retail strategy - Merchandising - In-store & online activities [Entry for Loreal Brandstorm 2014]
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1. ARE MEN GETTING MANSOMER? Nikhil Saraf | Paarmi Modi
2. Market Scenario Market Size : $433,336.3 (US Million) CAGR:
3.0% $68735.5 $27520 $122059 $22766 Mens grooming 7th largest
sector $33595.1 [2012] $40,369.8 [2017] CAGR: 3.7% Per Capita
Consumption $4.8 Market Size $6088.5 (US Million) CAGR 6% Per
Capita $1.5 2012-17- 33.6% Market Size $707.7 (US Million) CAGR
14.8% Per Capita $0.6 The mens grooming market has boomed in recent
years as increasing amounts of men wanting to look their best look
to products specifically targeted towards them to do the best job
possible. To keep up with demand, the market is becoming more
segmented and expanding into new categories and claims. For
instance, typical feminine formats such as serum and eye cream have
moved into the male category. Emmanuelle Moeglin, Global fragrance
and personal care analyst at Mintel Source: Euromonitor Data
3. Mens Grooming Products Mens grooming has gone mainstream.
Male skin care is one of the beauty industrys fastest-growing
sectors, with more men adopting a grooming regimen, alongside
exercise and eating right, as a component of healthy living. It is
observed that now men buy as much as half of male-grooming and
other types of consumer products. This is due to [a much greater]
awareness and the need to be presentable according to current
trend. Sanjali Giri, Senior Manager, Product Merchandising, The
Body Shop India 8% Global share Dominant Category 40% grooming
revenue in India Market Size: $2737.4 Million 50% Global share 60%
from Asia Pacific Upcoming categories: Anti- ageing, Blemish
removing, skin brightening India: Fragrances fastest growing at 33%
2.4% share of premium market Market Size: 8219.1 India: 20% Growth
in professional haircare segment Japan biggest market [$1.8
Billion] Skincare Shaving Deodrants Haircare Western Europe biggest
market [18.5%] 11% increase globally Bath & Shower Source:
Euromonitor Data; GCI Magazine
4. What does the market say? Metrosexual man, the single young
man with a high disposable income, living or working in the city
(because thats where all the best shops are), is perhaps the most
promising consumer market of the decade. In the Nineties, hes
everywhere and hes going shopping.. Mark Simpson, Man who coined
the word Mertrosexual Dermatologically Tested Ethical/Environment
Friendly Aromatherapeutic 21% 11% 6% 14% 4% 3% Marketed as 29%
Botanical & Herbal 23% Moisturizing & Hydrating 1985 25%
1998 2011 52% 69% Evolutionofthemetrosexualman Men buying their own
grooming productsPopular television shows such as Queer Eye for the
Straight Guy , Suits, Mad Men and many more are and have presented
a shift in how men are perceived. In these shows, men were
flattered, wooed and enjoyed much attention. In addition, with the
growing number of magazines on mens grooming and lifestyle, as well
as the increasing popularity of websites selling mens health and
fitness content, todays metrosexuals are becoming more hungry for
grooming knowledge. Asian men prefer skincare products Brazilian
men spend more on deodorants Russian men are more conservative with
regards to skincare products Insights Source: GCI Magazine, Spire
Research
5. Stats, Trends and the Future The aspirations and
requirements of todays young Indian men are rapidly evolving. With
a surge in disposable income, men are becoming more discerning and
indulgent. In an evolving trend in India, men are beginning to look
at innovative grooming and personal care products created
specifically for them. The segment shows immense promise and is
growing faster than the overall personal care market in India...
Nilanjan Mukherjee, Head of Marketing, Personal Care products, ITC
Limited Over 9 in 10 men use some sort of grooming products today
Mens grooming industry generated $964 million in U.S. department
store sales in 2011, an increase of 11%, Facial skincare product
users are more likely to be used by ethnic men aged 18-34 Facial
cleansers ,facial lotions/moisturizers, and lip products are the
most commonly used Mens facial skincare grew 12% in dollars in 2011
85% prefer to buy their own grooming products rather than women in
household Future of Man-Kind - Skin care for men will continue to
grow - Non-basic skin care products such as face masks and
anti-agers will see strong growth in the short term - For simple
colour cosmetics products such as BB cream and CC Cream, this will
likely continue to gain acceptance in some parts of Asia pacific
like India, East Asia. -Complicated colour cosmetics products such
as menscara and guyliner, this will remain niche even within Asia -
As men are usually not used to numerous steps in skin care regime,
combination products will do well as it helps to cut down on the
number of steps.All in one products. -Grooming spas, salons,
parlours for men will see an increase Source: Emerging Market
Information Service NPD Group Inc. / Consumer Tracking Service
6. Distribution Mechanisms Different retail formats targeted at
men include Mens grooming stores that carry different brands,
brands standalone stores targeted at men only, dedicated Mens Zone
at drugstore/department store. To reach men, eliminate girly
factors including store format, window display, product packaging
Rakshit Hargave MD, Nivea India Key beauty Channels in Asia Pacific
91.5% includes store based retail globally 18.8% Health and Beauty
Specialist stores in India 5.8% of internet selling Salons,
Ateliers, Spas Source: Euromonitor Data Global Beauty and Personal
Care what does the future hold? - In cosmetics Asia
7. His Grooming Regime Rising beauty consciousness due to
changing demographics and lifestyles, deeper consumer pockets,
rising media exposure, greater product choice, growth in retail
segment and wider availability are the reasons for sharp rising
demand of cosmetics among India men, especially the youth.. D S
Rawat, ASSOCHAM, Secretary General "IN THE MORNING, IF MY FACE IS A
LITTLE PUFFY I'LL PUT ON AN ICE PACK WHILE DOING STOMACH CRUNCHES.
"AFTER I REMOVE THE ICE PACK I USE A DEEP PORE CLEANSER LOTION. IN
THE SHOWER I USE A WATER ACTIVATED GEL CLEANSER." "THEN A HONEY
ALMOND BODY SCRUB, AND ON THE FACE AN EXFOLIATING GEL SCRUB." "THEN
I APPLY AN HERB-MINT FACIAL MASK WHICH I LEAVE ON FOR 10 MINUTES
WHILE I PREPARE THE REST OF MY ROUTINE." "I ALWAYS USE AN AFTER
SHAVE LOTION WITH LITTLE OR NO ALCOHOL, BECAUSE ALCOHOL DRIES YOUR
FACE OUT AND MAKES YOU LOOK OLDER." "THEN MOISTURIZER, THEN AN
ANTI- AGING EYE BALM FOLLOWED BY A FINAL MOISTURIZING PROTECTIVE
LOTION." Source:
http://www.shortlist.com/grooming/how-to-replicate-patrick-batemans-grooming-regimen
JWT State of the men report
8. What do they have to say Men in smaller towns are displaying
greater desire for grooming increasingly, especially in the
whitening and fairness segmentRakshit Hargave, MD, Nivea India
Grooming well gives you more confidence. You put on that costume
and you start believing you are more invincible. Mr. Mehta , 32,
India Its therapeutic. Shaving with a new razor after a hot shower
at the end of the day is a great feeling. Colin, 26, UK My teacher
in grade school used to say, dress well, test well. Thats kinda
stuck with me, I think if you dress sharp, you perform better
Arien, 28, SA I spend time on my appearance because it helps me
attract others. As simple as that. Troy, 22, US With women, its
almost a form of politeness to put on some make- up and look pretty
when they are meeting friends. I feel there should be the same form
of respect when it comes to men. Wu Qiang42, Owner of Spa in
Beijing The world has come to a different place now when it comes
to men taking care of themselves. I think more men spend more time
looking in the mirror than women do. MAC makeup artist JOHN S.,
Mensappearanceanxieties Source: JWT State of the men report
9. Your customer Skin care is a fast developing subsector of
the mens cosmetics market, mainly attributed to a rising concern
over aging. Men above 45 are realizing that they need to work
[until] quite late in life and maintaining a professional
appearance will be an advantage. Thirty percent of our existing
customers are men. Rahul Kale, Founder of Iraya, Ayuvedic Personal
Care & Beauty THE IMAGE CONSCIOUS MAN THE ACHIEVERS METROSEXUAL
THE RETROSEXUAL MARLBORO MAN ZEN MAN GORDON GECKO JOE BOXER ROAD
WARRIOR MULTI DIMENSIONAL MAN THE PLAYER
10. Brand Analysis Hair Color - The need to look younger is
driving many to this.Najeeb Ur Rahman, National technical expert,
Schwarzkopf Professional PHYSIQUE -Natural Skincare and hair care
brand -Quality product from long research RELATIONSHIP -Trust
-Listening -Customized Advice REFLECTION -People who take care of
their skin -Feel concerned about environment PERSONALITY -Expert
innovator -Natural product -Concerned about environment CULTURE
-American -Family -Values -Expertise of a pharmacist SELF IMAGE -I
feel good about myself ESSENCE Well being PERSONALITY Honest,
Transparent, Warm, Family Focus VALUES OF USERS Environmental
Concerns, Quality, A healthy body & spirit EMOTIONAL REWARD
Well-being, Look rested, feeling adequacy, proud of its engagement
FUNCTIONAL BENEFITS Quality, performance, pharmaceutical products,
not harmful for skin and body ATTRIBUTES 100% natural, environment
friendly, Premium cosmetic products BRAND IDENTITY PRISM BRAND
BUILDING BLOCKS
11. SWOT & Porters The constant exposure to heat, UV rays
of sun and extreme weather conditions takes a serious toll on our
skin. But nonetheless, its very important for us to appear well
groomed at all times. Rahul Dravid, Former Indian Cricket player
STRENGTHS - Overseas market. - The organization system is complete.
- They fully practice their business principles and core values. -
They have a great plan for realizing goal. - They have a mature
research and Development department. WEAKNESSES - It doesnt have
appealing packages. - They are not very well-known in Asia. .
OPPORTUNITIES - They improve their products consulting customers
requests. - International expansion. - They don't test on animals,
that appeals to people who protect animals. - Growing organic
market. THREATS .- Advertisements are not well- exposed. -
Unit-price is higher. - Strength of competition. - Fluctuation of
foreign exchange rates; Economies- SWOTANALYSIS Supplier power
-Able to substitute -Similar products -Suppliers large -Able to
change Threat of substitution -Cross product substitution -Relative
price/performance value Threat of new entrants -Low cost entry with
e-commerce -More luxury brands coming into the Indian market
Bargaining power of customer -Price Sensitive customer -Relative
low average purchase Industry Rivalry -Industry Growth -Balance of
competitors -Many competitors -High cost of leaving market
PORTERSFIVEFORCES
12. Brand Overview They have the products, time, and money to
be infatuated with their appearance and lifestyle. As developed
countries move toward economic prosperity, people within the
country often become more narcissistic and less altruistic. In
other words, the citizens move from an involvement role to a more
individualistic one; it becomes a society more focused on the I
rather than the we. Tannen, 1986 Business performance Products
Market Share & ranking Positioning and Image Consumers PR and
Digital Strategy Retail Strategy Merchandising Sales > $200
Million Unique formulations with finest Natural ingredients with
true benefits to hair and skin care US Rank 3 15% Heritage
brand-160 year founded as old-world apothecary Men+ women, special
tab for men(30-40% clientale) website, facebook, twitter,
pinterest, instagram Simple, efficient, recyclable packaging
Simple, efficient, recyclable packaging Double Digit growth in all
zones present Simple, efficient, recyclable packaging Canada Rank 3
14% Mascot - Mr Bones upper middle class, care for body and
cosmetic products email marketing+newsletter to learn about
products Customized product offerings based on differnet skin types
of customer gifts for him, her, baby, pets and corporate gifting
services Distribution in over 44 countries More focus on cost and
quality of product Australia Rank 5 18% Natural range of grooming
products - attribute oriented and functional oriented - Quality
experts, well informed, specific requirements, social commitments
top 10 Customer favorite promotions including men Customer favorite
promotions +33% growth over last year Special ingredients like
lavender, caffeine, vitamin c, Blue Algae, Rose artica - France
Rank 10 10% Customer is key offers while online shopping - 5 free
samples on every order Charitable activations - Keep a child alive
with Alicia Keys, Peace Loving Kiehls, amFar, Recycle-reuse
campaigns(eco system) Scientifically formulated - safe and
customized to skin China Rank 6 3% works towards improving lives of
communities of Kiehl's customer(global+local) 3 causes- HIV/AIDs,
environment protection, children's well being live chat for healthy
skin consultation Appealing window display, brick wall, bike,
airplane, chemistry instruments, customer pictures on wall
Innovations (products+retail) Hong Kong Rank 2 8% Kiehls rewards
and benefits to loyal customer Quirky, attractive, eye catching
visuals
13. Competitor Portfolio Three main reasons for enhancing the
male appearance: vanity, saving marriages, and job security. . Jim
Emerson, Author of Grooming for Success Lab Series for Men powered
by technology, backed by scientific research and reinforced by
years of success in addressing men's skincare and grooming needs
Biotherm provides biological approaches to luxury skincare that are
priced lower than the average prestige face care Forest Essentials
has pure, Nutritious Ayurvedic Products for the conscientious men
based on the philosophy of Tree of Life Nivea's of men is
synonymous with quality skin care on a global level. Strong
heritage that soothes, nurtures and protects mass skincare market
Clinique is the most Attractive Cosmetic International brand that
creates great skin. Customers include men between 16-55 years.
Distinctive packaging over the years Loccitance en Provence Natural
and Local ingredients from a farm in France. Trustworthy and
critically tested grooming products
14. Off-Line and In-store Activations Free Sampling and
Grooming Experiences at mens sporting events Editorials in high
fashion mens magazines Kiehls Grooming Guide Mobile App Kiehls
Rejuvenating Grooming Ateliers and Spa Treatments Kiehls Travel
Kits for the man on the move
15. Online Activations Grooming tips campaign #GroomYourself
Suggest a look for a job campaign (in store/online) #IGotThePower
MONDAY TUESDAY WEDNESDAY THURSDAY FRIDAY SATURDAY SUNDAY Whats your
look for the day? #OwnTheDay