L\'Oreal Brandstorm Pre Submission


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My team and I created this deck for the L\'Oreal Brandstorm contest. We conducted in-depth research of which we based our recommendations on.

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L\'Oreal Brandstorm Pre Submission

  1. 1. BRANDSTORM TEAM : I DE A SHACK Diesel turns standard objects into fashion products. Diesel represents premium casual wear that is the true alternative to luxury brands. Diesel is inspired by the different ages; its values transcend all cultural barriers. Diesel is an icon for the new age. YOUNG EDGY TWISTED SEXY INDEPENDENT ECLECTIC UNEXPECTED REBELLIOUS
  2. 2. In the United States, there has been a dramatic increase in the manufacturing and sales of male-targeted personal care products within the past fewyears. Personal care products are used more by men to improve or maintain appearances (Ex. Lotion, body soap, hair care, deodorant, etc.)A few reasons for this shift in the industry: • The U.S. has gone from a manufacturing based economy to a service based economy 1 • Men are constantly exposed to men’s lifestyle magazines — such as Maxim, Esquire, Men’s Health, GQ, and FHM 1 • Consumers are looking for alternatives to costly visits to the doctor, and thus are turning to DIY remedies 2In the past, marketers have focused on women as their primary target for marketing personal care products. Men would generally buy whatever uni-sex products were available. “While unisex toiletries account for the majority of sales, male-specific toiletries have shown greater sales growth andare gaining share within the market.” 1What’s in?Anti aging & anti wrinkle productsMass premium manufacturers already in the men’s skincare market haveincreased the range of anti-aging and anti-wrinkle products for men(Ex. Lancôme Men, Moxie for Men, and Neutrogena Men)All in one productsMen are attracted to the convenience of all-in-one products. Many new productextensions have been introduced which claim multiple benefits in a single product(Ex. Zia for Men, Lab Series, L’Oreal Men’s Expert All in One, Fusion Clear Skin Hydra Gel)MasculinityMarketers are shifting away from the metrosexual image, and more towardsportraying the product as more masculine.1 Mintel, Mens Toiletries - US - November 20072 Mintel - Medicated Skincare Products - US - May 2009 TEAM IDEA SHACK
  3. 3. FDM (Food Drug Mass Merchandiser) Sales of Men’s Toiletries 1 Skincare dominates in the male-targeted product category Top Sellers: 1. Skincare 2. Deodorant 3. Hair care These top three product categories take up most of the market share. Skin care products continue to increase in popularity while deodorants and hair care product sales are increasing at a slower rate than skin care. Skin care The growing acceptance of skincare and concern for appearance among men has helped increase the number of facial anti-aging and facial moisturizing products available for men. As the economy weakened in 2008, FDMx (Food Drug Mass Merchandiser) sales of private label acne treatments nearly doubled, increasing their market share from a 2.3% share of the market in 2006 to 3.9% in 2008. Private label sales remain a relatively small part of the overall market, however, this increase indicates that there is still significant brand loyalty within this segment, regardless of cost. 2 The men’s skincare market is predicted to double between 2007 and 2010 3 Deodorant / Antiperspirant There is approximately a 90% penetration in this product category. This segment is near saturation, and there is little room for sales growth. 4 Hair Care Hair care brands created and marketed specifically for men are rare. Hair gel / mousse and hair color have seen modest sales growth over the review period. Increased distribution of American Crew brand products (formerly a salon-only product) to FDMx, has helped drive sales of the segment, with lower prices and increased convenience over salon purchases. Men are looking more towards cheaper alternatives to hair care. 41 Mintel / Based on Information Resources, Inc. InfoScan Reviews Information 3 http://blogskinny.com/More-men-opting-for-skincare-products$AID=2437.2008.2 Mintel - Medicated Skincare Products - US - May 2009 4 Mintel, Mens Toiletries - US - November 2007 TEAM IDEA SHACK
  4. 4. With good looks comes great powerGenerally speaking, men consider their looks very important. Many men attribute handsome good looks to good hygiene and fresh breath. Youngmen, especially 18 - 29 year olds have no problems with using moisturizers and other male beauty products. In fact, studies show 9 out of 10 menthink the use of cosmetics and wearing stylish clothes will give them more pulling power than the possession of a flash car 1 In a study conducted bySynovate, 56% of men use beauty products created for and marketed to men. Men are moving away from purchasing unisex products, and lookingtowards products that will cater to their specific needs. 2The same study showed that men who carry themselves with confidence are generally consideredhandsome or good looking, and men feel that their appearance gets better with age. Other interestingfindings from the Synovate survey: 2 • 70% men surveyed say their main motivation for looking good is for themselves • 72% of American men buy their beauty products themselves • 80% of these men who feel looks are important also use face wash • 1/3 of the men surveyed use hair products, face wash and / or facial moisturizersMen are now focusing more on their appearances than ever. 3 Skin care products are almost recession-proofSkin care products such as face washes and moisturizers seem to play animportant role in this attitudinal shift. There always seems to be a marketfor clearer skin and a need to combat oily skin. Even though acne is assumed to be a teen problem, adults suffer greatly from the issue as well. Thishas helped spur growth in the skin care product segment. Male consumers use skin care products with an acne-fighting component, as they seem tobe plagued more with skin problems (face, back, and shoulders) than females.Men are likely to stick with a brand once they’ve tried it and are not likely to try new ones. There is a great opportunity for manufacturers to bringyoung men into the skin care fold early on, so that they remain loyal customers. 31 http://blogskinny.com/?More-men-opting-for-skincare-products&AID=2437. 2008. 3 Mintel - Medicated Skincare Products - US - May 20092 Synovate Male Beauty Survey, October 2008. All males (n=4,893) TEAM IDEA SHACK
  5. 5. No particular type of facial cleansing or medicated product dominates usage amongst men. 1This indicates that men who use skin care products use more than one item, and these men may be open to skincare regimen kits that offer completeskincare in two or three steps. Facial cleansing trumps acne care and anti-aging in terms of attributes desired in skincare products. Women are morelikely to use a product with cleansing and anti-aging properties, while men will use acne care products over those with other qualities.Studies show that men may be more apt to usebar soap or body wash for the face as well. This [Male] Attitudes towards product attributes and purchasing behavior 2is probably due to convenience or indifference.1 Men want convenienceAs men age, they are less likely to use facialcleansing or medicated skincare products. Olderskin is usually more delicate and vulnerable tochemicals found in medicated skincare. Also, older men are less likely to be plagued with acne or the other skin issues for which medicated skincare isdesigned. More than half of those in the 18-34 age groups use medicated facial care, indicating that these years are a prime time to target thesedemographics with facial products designed to combat specific problems.Different age groups prefer different facial cleansing methodsYounger men tend to use scrubs and foaming face washes or products that tend to require a bit more vigorous action in order to work properly. Con-versely, older men gravitate towards creams and lotions, indicating a gentler approach towards skincare. The need for facial cleansing is shared acrossage groups—over two in five male respondents use acne care cleansing or medicated products, indicating that acne is an issue for many adult malesand not only teens. Upscale, science-based acne products offer potential to grow sales as adult men with acne concerns may be more willing and ableto afford them. In addition, acne may be more of a concern for adults than for teens, for whom acne may be an assumed fact of life. 3 Young men choose skin care products based on acne care and the ability to truly scrub one’s skin clean.Products with the highest market penetration among this demographic are foaming face washes, scrubs, cleansing cloths, creams, and toner. Malesare even more likely than females to purchase products that have some form of acne care. 31 Mintel, Mens Toiletries - US - November 2007 3 Mintel - Medicated Skincare Products - US - May 20092 Mintel - January 2009 TEAM IDEA SHACK
  6. 6. In 2007, Nivea, L’Oreal, Neutrogena were the only major brands that offered multiple beauty products formulated specifically for men. These three brands FDM manufacturer and brand sales accounted for over 84% of the entire skin care market. Since then, many other of men’s skincare products, 2007 1 brands of skin care products that are male-specific have surfaced. Because they were able to established a strong brand presence early on Nivea, L’Oréal, and Neutrogena are still three of the top selling skin care brands for men. Nivea for Men Nivea for Men provides a vast range of beauty products for men including anti- perspirants, face cleansers, after shave balms, moisturizers, deodorants and more. Each product range has specific products formulated for different types of men and their daily activities (ex. sport, oil control, sensitive product lines). Nivea for Men products all have dark blue, white, and silver incorporated into their packaging. 2 Nivea recently launched a new website called the Groom Room. The Groom Room is an inter- Growing trend alert: national website aimed at providing an online resource for male personal care needs. It features blog posts, grooming tips, as well as articles on popular topics More brands are trying to involve their consumers that include subjects such as sport, entertainment, career advice and fashion as more with their products and their brand name by well as tips on dating and relationships to promote the Nivea for Men product creating an interactive presence online. The focus is range. 3 Nivea is targeting young men and hoping for greater consumer involve- not only on the products, but also lifestyle issues. ment through the interactive website and social networking sites.1 Mintel, Mens Toiletries - US - November 2007 3 http://www.cosmeticsdesign.com/Products-Markets/Nivea-taps-into-men-s-grooming-with-website-launch2 http://www.niveaformen.com TEAM IDEA SHACK
  7. 7. L’Oréal Paris has created men specific products for two different product categories:1 skin care and hair care. L’Oréal Vive Pro includes men specific hair conditioner and shampoos, L’Oréal Studio Line provides for many differ- ent men’s hair styling needs, and L’Oréal Men’s Expert is an extensive line of skin care products marketed towards men. L’Oréal Men’s Expert product packages have an orange and metallic blue scheme and they include a range of facial cleansers, moisturizers, and after shave balms. 2 Men’s Expert targets young men in their 20’s and also those over 40 and they take on a very informational approach to men’s grooming. 3 Neutrogena Men provides a very extensive line of products for men’s grooming. They have everything from moisturizers, bath wash, face cleansers, to hair shine serums. Neutrogena definitely covers all aspects of men’s grooming. The website offers expert advice on any type of grooming needs. There is an extensive line of products that help the face, body, skin, and hair. Neutrogena targets a wide range of men. The products have a black, blue, and white scheme, and they can usually be found in FDM stores. Jack Black’s All Over Wash Clinique for Men Products: All-over body wash 33 oz for face, hair, and body; Cologne; Products: Wide variety; Deodorant, Face Scrub, Face Wash, Scuffing Tweezers; Grooming sets; Lip Balm Lotion, Post-Shave Beard Smoother, and many more The look: Very masculine; it’s “based on masculine icons like upscale The look: Black and grey product line. Clean, but manly. scotch and cigars.” 5 Products contain natural and organic ingredients. Market share: 32% SOM in 2008 6 Market share: 5.8% of skin care product category 6 Positioning / image: Affordable, quality products that offer an alter- Positioning / image: Jack Black positions itself as a man’s product care native to Unisex products. Clinique positions itself as a company line. They offer simple, uncomplicated products that serve to provide that performs thorough research of products before distribution. more than one function for face care. Price: Varies from $14 - 30 Price: ranges from $15 to $651 http://lorealparisusa.com 4 http://www.neutrogena.com/econsumer/ntg/productslanding.browse?segment=men2 http://www.lorealparisusa.com/men/lorealmen.asp?directlink= 5 http://www.getjackblack.com3 http://www.allbusiness.com/marketing-advertising/branding-brand.html 6 Total Face Segment, Men, NPD Beauty Trends TEAM IDEA SHACK
  8. 8. Strengths: Diesel is a well established premium brand with a solid Weaknesses: Diesel has not been traditionally known for its image. In the past, Diesel has used free samples as a way to entice the beauty care lines and therefore it will be difficult to penetrate target market to try its new product. Free samples have the widest appeal that particular market. Diesel is not offered in mass to consumers and usually encourages them to try a new product 1 The merchandisers such as Wal-Mart, and having a line available at company is present in over 80 countries with over 5,000 points of sale and Wal-Mart would allow for a significant amount of exposure to the more than 300 monobrand stores, 2 and in addition to all their store general public. Because Diesel is a selective brand, it will not be locations, Diesel offers the convenience of an online store where sold in such FDMx retail outlets in contrast to its competitors consumers may purchase clothing and accessories. therefore limiting its sales potential. Opportunities: Men under the age of 45 are the more likely to change Threats: Although deodorants / antiperspirants and shaving their look regularly, and will be more willing to change the products they cream / gel show high penetration among male respondents, less use to update their look. This makes them a favorable target for Diesel. 3 than 2 in 5 men use any other type of beauty product. This lack of Men like convenience. There is a growing popularity of having all-in-one perceived benefit or ambivalence is a major challenge to the beauty items for men. In order to penetrate the market once more, Diesel market. 1 Research show that converting men to users of non- needs to solidify its product line by ensuring that the general public believes standard beauty products, is a significant challenge to the market. it is a high quality product. Recently there has been a shift in the way While most men agree that it is important to be attractive consumers purchase natural and organic products. 21% of men look to the opposite sex, very few would care about looking any for natural ingredients and this number is expected to grow. Since Word of younger. Because men tend to think they look more attractive as Mouth is the biggest influence on men, it is important that people believe in they age, there is little room for the anti-aging segment of skin the validity of the product. 1 6 out of every 10 men use soap and water as care to grow. In the current economic downturn, consumers may their facial cleansing regimen. This poses a potential opportunity for stray away from premium brands and more towards cheaper marketers to target men by making them aware of the benefits of using a alternatives. proper facial cleansing regimen. 3 The majority of male respondents see a difference in the efficiency and quality of products.1 Therefore Diesel Diesel should create a premium men’s has an opportunity to carve a niche in this market and establish itself as a product that is convenient, stylish, efficient, premiere beauty care competitor based on the already well-established and natural. brand image.1 Mintel, Mens Toiletries - US - November 20072 http://www.diesel/info/history.php 3 Mintel, Facial Skincare - US - January 2009 TEAM IDEA SHACK
  9. 9. An Unconventional ApproachDiesel is all about twisting the norm and reinventing conventional products. Because of the increasing saturation of the market, Diesel must create aninnovative men’s beauty product line with a Unique Selling Point. Based on the idea that all men, and more specifically young men, are lured by con-venience, one of the ideas that has the most potential is that of an all-in-one product. For example, one Face Wash may be used for the face, neck,and shoulders, and may contain UV-protection.Another proposal is due to the general public’s increase of appreciation for natural and organic ingredients in their daily products. Therefore, Die-sel’s facial cleanser may also boast no synthetic additives. Clinique, which has the most market share in skincare amongst men, takes great pride inthe fact that they spend much of their money on research and development for chemically safe products.These are preliminary ideas that Idea Shack has come up with, and we hope to see these ideas come to fruition once we have developed a completemarketing strategy for this product line.The New Product LineBased on a thorough analysis of the men’s beauty product market, consumers, and potential competitors, it is evident that skin care is the most viableopportunity that Diesel can take advantage of. The shift towards an increase of beauty care product usage amongst men has allowed for a segmentthat Diesel may take a part in. Diesel’s premiere brand conveys the image of quality, which will in turn translate to an equally prestigious skin careline. Idea Shack has utilized all the secondary research that has been conducted, and concludes that a skin cleansing regimen would best suitthe brand in terms of maintaining quality. Other cheaper grooming products such as shaving cream and deodorant may not be feasible markets forDiesel to penetrate in the early stages of establishing their grounds in the men’s beauty product category.The TargetYoung men ages 24 to 44 years of age would be the primary target of Diesel’s new beauty care for men franchise. These men may or may not havean initial loyalty to Diesel, but their conversion to the new beauty product line will be due to its current product image of premium quality. Addition-ally, they have disposable income to spare, and realize appearance plays an especially important role in theworkplace setting. Many marketers realize that this area is quickly gaining vitality so it is important to penetratethe market early on. THANK YOU - TEAM IDEA SHACK