Anna Konovodova | Alina Astapenko
Zekie Irikh
DIGITAL GAME 2016
MEN’s BEAUTY MARKET
Part I
MEN’s BEAUTY MARKET
2
The Market
world trends
❖ Today, the market of Perfumery, Cosmetics,
Beauty salons, and SPA for male segments are
most attractive and fast-growing;
❖ Most men do NOT want to buy same products
as women buy;
❖ The use of cosmetics and perfumes is a must for
the person who wants to achieve status in
society. Like a good suit, watch and tie;
❖ The younger generation of men believe that the
appearance is an indicator of success in business
and life;
❖ For many men, the consumption of cosmetic
products begins with the ‘game’: the desire to
please their lovers;
❖ Men want to look well groomed and effective,
but often they are afraid to admit to others that
they use the full line of beauty products
3
Importance to Look
Well For Men
4
Market men's Wet Shaving - one of the most
dynamic in the world, where men quickly "switch"
to better and more expensive products.
5
Target
Audience
6
Men’s beard
grows daily up to
0.0375 cm, for
the year 13.75 cm
But the
primary
25-35 y.o
High Income
Total Men
target audience
18-45 y.o Mid &
High Income
General Information
7
Main Trends
Beard or Not to Beard?
"Growing a beard is the only way a man can
publicly display his manhood, without getting
thrown in jail for indecent exposure!“
Dr Alun Withey
(creator of 'Do Beards Matter')
8
Hipster Yuppie Yuccie
★ Hipsters wear really
nice clothes but have
no actual job
★ They tend to
congregate in very
urban settings
★ They are connected
globally thanks to the
Internet
★ Yuppies have a job and
receives a lot of money
★ They live in or near a
large city
★ They wear designer
suits, gucci preferably
with slicked back or
well cut hair
★ Yuccies use internet as
methods of self-
promotion
★ They support brands
promote sustainable
★ They do not necessarily
seek expensive brand
names
The whole point of
hipsters is that they
avoid labels and being
labeled
Psychotype yuppies
show marked
narcissistic traits
Main approach of yuccie
is being successful like
yuppies and creative like
hipsters
9
Men’s
Beauty
Market in
Ukraine
10
Approximate Market Share of Men’s care
beauty products in Ukraine
51% 10%15% 24%
According to the results of market research, it was
identified the main players in the market of men's
grooming.
Ukraine with a
retail share of 51% has
benefits from a wide
product portfolio of well-
known popular brands such
as Gillette and Old Spice,
which are heavily
advertised on television.
Ukraine
ranked second in men's
grooming with a 15%
value share thanks to its
popular Nivea brand,
which has presence in
many beauty and
personal care.
Ukraine
ranked third
with a 10% value
share due to its
Axe, Rexona and
Clear Vita ABE
brands.
Other players of men’s
grooming market, e.g.
L’oreal Men Expert,
Oriflame, Fa men, Cool
men, Welldone and etc.
11
Category Mass Market Professional Luxury
Hair Clear VITA ABE, Nivea Men, Head
Shoulders, Axe, L’oreal Elseve, Well-
done , Shauma, Shamtu, Estel
Professional, Fructis Men
Paul Mitchell, Kerastase, American
Crew, Schwarzkopf Professional,
Dax men, Murrays, Black&White,
Loreal Professional Homme
Acca Kappa, Barex Italiana, Tigi,
C:ЕНКО, Korres
Body Arko men, Axe, Dove Men+Care,
Nivea men, Palmolive men,Rexona
men, Welldone, Old Spice, Adidas,
Витэкс, Estel, Fa men, Florena men
Acca Kappa, Declare, Weleda,
Mades Cosmetics, Yves Rocher,
Kiehls
Lumene Men, Armani Acqua Di Gio,
Armani Code, Burberry, Calvin Klein
Chanel Allure Homme, Clinique Happy for
men, Dolce&Gabanna, Davidoff adventure
Lacoste, Mercedes-Benz
Face Nivea men, Gillette, Cool men,Lumene
men, Welldone, Витэкс, Mades
Cosmetics, Natura Siberica, L’oreal
Men Expert, Arko men, Oriflame,
Avon,Faberlic for men, Men Aggressia,
Fa men, Florena men
Academie Homme, Biotherm
Homme, Phytomer, Declare, Vichy
homme, Weleda, Uriage, Yves
Rocher, Nuxe men, The Art of
Shaving
Collistar, Clinique for men,
Shiseido Men, Dior Homme,
Lancome Men, Aramis, Paco Rabanne
Fragrance Adidas, Nike for men,
Alain Aregon, Avon
Acca Kappa, Acqua di parma, Angel Schlesser, Hugo Boss, Giorgio Armani, Paco
Rabanne,Diesel,Chanel Homme, Dior, BVLGARI, Trussardi, DsQuared, Bugatti,
Hermes, Ralph Lauren
Men’s brands in Ukraine
12
PRODUCT CATEGORIES (FACE)
SHAVING
AFTER
SHAVING
SKIN
CARE
13
What do
Ukrainian
Men Need?
14
What are the main
characteristics of
selection products for
shaving?
Statistical Data from the questionnaires (60 men)
15
Statistical Data from the questionnaires (60 men)
The most popular shop for
buying men's care products
Who buys shaving
16
How often buying
products for shaving
Men are very conservative in their cosmetics
preferences and they often stick with the
same products for years
17
Competition
in Ukraine
18
MAIN PLAYERS
Manufacturer of accessories for
shaving and body care. Each shaving
system has its copyrighted name.
❖ One of the first clearly identified
market sector: young, modern,
focused on success and winning
man.
❖ The pricing strategy is a
premium focus.
❖ Gillette spends billions of dollars
on ad policies.
❖ Use an Emotional Marketing
Strategy.
❖ Managers of the company said that
Product Quality is the core
product offering, around which
everything else revolves.
The world's leading brand in the
category of the care of men's skin.
❖ In 1980, men around the world
were introduced to a new concept
in skincare: an alcohol-free
aftershave balm from NIVEA that
did not irritate skin.
❖ Offers a wide range assortment:
from shaving for sensitive skin to
the tonic shower gel.
Is a modern, dynamic,
innovative brand.
❖ Brand appeared from
1957 in Turkey.
❖ Under this brand are
manufactured shaving,
after-shave, razors,
deodorants and shower
gels.
❖ Positioning the products
as consumer goods at
an affordable price.
19
of market
share
75%
The Main Sales of before/after-
shaving products are of such
brands as Gillette, Nivea Men,
Arko, Florena, Avon, Men
Expert, Men Agressia, Oriflame,
Faberlic, etc..
of sales
50%
In the categories structure
prevails demand for
Shaving Foam, sales of
which represent about 50%
The Main Trend in the After-Shave
segment is an increase in the
consumption of balms and reducing the
demand for lotions. BUT lotions are
still the most important and the biggest
segment.
Aftershave segment is growing
much slower than balsam. Low
demand persists after shave gels,
despite their efficiency in use. Gels
occupy the upper-price segment.
20
Main Product
Assortment
Categories
Type of the men’s cosmetic/Company Men Expert Nivea men Gillette Arko
Skin Care: 3 2 - -
Hydra energetic Lotion + - - -
Face washing gel + + - -
Cream + + - -
Pre Shaving: 7 14 24 18
Shaving cream - + - +
Shaving foam + + + +
Shaving gel + + + +
Post Shaving: 7 13 16 7
Balm + + + +
Cream + + + +
Lotion + + + +
Gel + - + -
PRICE
Type of the men’s
cosmetic/
Company
Men Expert Nivea Men Gillette Arko
Skin care
Face washing gel
50 ml
220
UAH
160
UAH
- -
Pre Shaving
Shaving foam
200 ml
70
UAH
65
UAH
50
UAH
35
UAH
Post shaving
Lotion
100 ml
156
UAH
135
UAH
130
UAH
65
UAH
22
Pricevalue
Price
Value
23
Distribution
Channels
The main players use all retail channels: from
open markets to large retail chains.
The main retail channels are supermarkets,
specialty shops for the sale of cosmetics and
household chemicals, and large shopping centers.
Developing distribution channels such as direct
sales (Avon, Oriflame, Mary Kay) and trade via the
Internet (own online shop, online shop).
24
С
Porter’s
Five Forces
Threat of new
entrants
(high)
The market of cosmetic is one of
the fastest growing and dynamic,
threat of new entrants in Ukraine is
high.
Competitive Rivalry
(high)
There is strong competition between
certain brands such as Nivea,
Gillette, Argo etc. Any new cosmetics
brand entering the market has a low
barriers to entry, however has to face
competition from several brands,
which vary greatly depending on
multiple factors
Threat of Substitute
Products
(low)
The suppliers of cosmetic products
and cosmeceuticals for Ukraine are
international distributors of cosmetic
brands, large global retailers or
individual local agents.
The Bargaining
Power of Buyers
(high)
In the cosmetic industry, we can
differentiate between two types of
buyers: B2B clients and B2C clients.
The Bargaining
Power of Suppliers
(high)
This conclusion has been made due
to the fact that a substitute for
cosmetics products does not exist.
26
DIGITAL MARKET
Part II
27
Digital
Marketing
Activities
with the
greatest
commercial
impact
in 2016
- Marketing Automation (including CRM, behavioural Email marketing
and web personalization)
- Content marketing
- Big Data (including market and customer insight and predictive
analytics)
- Mobile marketing (Mobile advertising, site development and apps)
- Virtual Reality
- Conversion rate optimisation (CRO) / Improving website experience
- Social Media Marketing including Social CRM and Social Customer
Care
- Search Engine Optimisation
- Wearables (e.g. Apple Watch, activity trackers, augmented reality)
- Paid search marketing, e.g. Google AdWords Pay Per Click
- Online PR (including influencer outreach)
- Internet of Things (IoT) marketing applications
28
Digital
Trends
1
Improved people-based
marketing options will give
advertisers
flexibility and control
2
Advertisers shift focus from
workflow efficiency to
targeting precision
3
Marketers will raise
technology standards to
close the mobile gap
4
Limitations of walled
gardens will force
advertisers and publishers
to make tough choices
5
With ad blocking as the new
normal, better targeting,
formats and relevancy
become essential
6
The race for data drivers
bigger and bigger ad tech
acquisitions 7
The era of first-party data
creates demand for data-
driven C-suite roles
8
Coalition loyalty programs
will open doors to more
valuable second-party data
29
Ukrainian
Digital
Market
30
Men’s
interests
Waste no more time
arguing about what a
good man should be.
Be one.
Marcus Aurelius
The great question that has
never been answered and which
I have not yet been able to
answer, despite my 30 years of
research into the feminine soul,
is: ‘What does a woman want?’
Sigmund Freud
Sports don’t build
character.
They reveal it.
Michael Jordan
I know a lot about cars,
man. I can look at any
car's headlights and tell
you exactly which way
it's coming.
Mitch Hedberg
I don’t have dreams,
I have goals.
Harvey Specter
31
brand community in Ukrainian Facebook№ 1
Every 20th
Ukrainian Facebook
user
is a fan of
Chernigivske page.
from20% in 2013
till 41%in 2014
- Teaser ads
- Apps
“Yes, I am Ukrainian”
“Chernigivske rules
of communication”
- Karaoke-app
“Ukrainian songs”
32
Integrated
Digital
Campaign for
Lvivske beer
song / uploaded photos
10 / 1944
22136
unique users
43%
viral effect
204 544
2314
page views
1 million
total reach
users
attracted fans
91 000
viewers
Ukrainian community of cra ters
on FB was created to promote the
beer “Lvivske Robert Doms”.
33
“Legendary words”
Digital campaign
for
Discovery Channel
Ukraine
IDEA
User passes the test,
gets a result
( 1 of 11 Archetypes)
and recommendation
of the most suitable
discovery channel’s
content.
PRIZE
4 cameras Go Pro
RESULTS
In 4weeks more than
450,000 unique visitors
Viral traffic - 87 %
(more than 390,00 unique visits)
Viral coefficient - 7
(1 paid user brought 7 free visitors)
The cost of a 5-
minute-contact with
customer less than -
$0.05!
9,000,000
total viral
campaign reach
In 1 month Discovery Channel gained
more than
50 New Requests from
UKRAINIAN TV PROVIDERS
IN 3 MONTHS DISCOVERY
CHANNEL
TV RATINGS IN UKRAINE
ROSE ON 15%
Digital
Campaigns
of Citroen:
Virtual Race
“New Citroen C4 Facebook GrandPrix”
+7000
New FANS
1 1 800
Likes
+ 66 %
Market Share
Say “NO” to someone else’s
rules-Announce your manifest!
Digital
campaign
of Nissan
Micra from
Lego:
- To assembly the Lego model of
Nissan
- Video broadcast on the official
website of Nissan
- Online competition among visitors
1
2
Test-drive
registrations
X 9 times.
117% of promo
sales plan
Nivea Men Digital Strategy
- Ukrainian branded website
- life hacking of personal care
- promotional campaign
“Success in details”
Gillette Digital Strategy
- digital POS
- promotions
“To become a G-man”
130
thousand
codes
40
thousand
people
every
3rd
participa
nt
36
AMBASSADORS & SLOGANS
L’oreal
Men Expert
Gillette NIVEA
FOR MEN ARKO
David Beckham
Roger
Federer
Tiger
Woods
Jonas Rivanno
Arjun Rampal
Expert at being a man.
Fit. Sharp. Cool.
The Best a Man
Can Get
The day begins
from you!
Pure Shave.
Pure pleasure.
Hugh
Laurie
Gerard
Butler
Ryan
Reynolds
Jimmy
Bartel
37
SMM (Jan 2016)
L’oreal
Men Expert
Gillette NIVEA
FOR MEN
ARKO
237
N /A
N/A
1 238 #lorealmenexpert
N/A
2 095 344
N /A
3 273
52 435
4 036 353
429 843 (RU)
N /A
5195 #niveamen
1 226 (UA)
N /A
N /A
N /A
N /A
38
users cannot live a day without the
Internet, and 59% are men
devices with
Internet
connection
of Ukrainians
prefer social
networks as a
leisure.
The majority of Ukrainians put in the 1-st place
the desire to stay in shape and be healthy.
21,1
million
1,8
million
35%
45%
Why Do You need Digital?
21,7 h.
a week TV 20 h.VS
Online
The most active users - a youth
EVERY DAY 70%
16-25 y.o
ONLY 14%
40-59 y.o
39
Consumer online
feedback about
L’oreal Men Expert
The responses from
http://shop.loreal-paris.ua:
The responses from
http://rozetka.com.ua
40
Statistical Data from the questionnaires (60 men)
Using products of
L'oreal Men Expert
Knowledge of
L’oreal Men Expert
41
E-commerce
environment
★ E-commerce in Ukraine is
estimated to be worth 2.7 billion
euros.
★ About 70% of users are searching
information about goods and
services online.
★ Only 30% prefer online
purchasing, and more than 40% is
offline
★ it’s expected that the e-commerce
volume will increase rapidly and
will grow from 2.7 to 7 billion
euros by 2018
42
E-commerce trends in Ukraine
1 2 3
More and more small and
medium-sized businesses are
opening own online shops. Their
online assortment increased to
34.6 million of goods and services
SMALL AND
MEDIUM-SIZE
BUSINESSES
Powerful offline retailers go
online. For example, companies
such as WOG, Comfy, “Sea of
Beer” go online, which is quite
unusual for such players
Ukrainians do more shopping
online. Shopping in the
product category "beauty"
grew by 60 percent compared
to the previous year
MORE SHOPPING
ONLINE
4 5 6
Ukrainians are searching the best
deals in online shops. Ukrainians
realized that they can not only buy
goods in retail networks, but also
beneficial to make purchases online.
BEST
DEAL
Growing influence and share of
mobile devices to online sales.
The number of visitors from
mobile devices increased more
than 2.3 fold
MOBILE
DEVICES
Growing customer service online.
The powerful players with poor
service can lose market share, in
contrast, the smaller players will
catch up to the leaders.
CUSTOMER
ONLINE
SERVICE
UNUSUAL
PLAYERS
43
MEN EXPERT SWOT
STRENGTH WEAKNESSES
➔ Positive reviews from customers;
➔ World Recognized and respected
Ambassadors;
➔ The brand presents some unique
products;
➔ Having the own online shop;
➔ Limited Merchandising;
➔ Low Social Media Performance;
➔ Absence of the web-site;
➔ No integration marketing
communications;
➔ Weak content and on-line positioning;
➔ Low marketing budget;
➔ no SEO and no digital campaigns;
OPPORTUNITIES THREATS
➔ Become the Best Interacting Digital
Brand;
➔ Build long lasting relationship with
customers;
➔ Attract new buyers, increase sales;
➔ Health and beauty branch is growing
rapidly in e-commerce;
➔ High competition in the market;
➔ Ukrainian audience will not accept brand,
due to high prices and economic situation
nowadays;
➔ Problems with measuring and evaluating
efficiency of digital campaigns;
➔ Wrong target audience focus.
Thanks!
any questions?
We are SYNERGY TEAM | KNEU
Anna Konovodova
anna.konovodova@gmail.com
Alina Astapenko
alinaastapenko20@gmail.com
Zekie Irikh
zekie.irikh@gmail.com
to be continued soon...

L'oreal Digital Game_Market Analysis and Report_Man's brands in Ukraine

  • 1.
    Anna Konovodova |Alina Astapenko Zekie Irikh DIGITAL GAME 2016
  • 2.
    MEN’s BEAUTY MARKET PartI MEN’s BEAUTY MARKET 2
  • 3.
    The Market world trends ❖Today, the market of Perfumery, Cosmetics, Beauty salons, and SPA for male segments are most attractive and fast-growing; ❖ Most men do NOT want to buy same products as women buy; ❖ The use of cosmetics and perfumes is a must for the person who wants to achieve status in society. Like a good suit, watch and tie; ❖ The younger generation of men believe that the appearance is an indicator of success in business and life; ❖ For many men, the consumption of cosmetic products begins with the ‘game’: the desire to please their lovers; ❖ Men want to look well groomed and effective, but often they are afraid to admit to others that they use the full line of beauty products 3
  • 4.
  • 5.
    Market men's WetShaving - one of the most dynamic in the world, where men quickly "switch" to better and more expensive products. 5
  • 6.
  • 7.
    Men’s beard grows dailyup to 0.0375 cm, for the year 13.75 cm But the primary 25-35 y.o High Income Total Men target audience 18-45 y.o Mid & High Income General Information 7
  • 8.
    Main Trends Beard orNot to Beard? "Growing a beard is the only way a man can publicly display his manhood, without getting thrown in jail for indecent exposure!“ Dr Alun Withey (creator of 'Do Beards Matter') 8
  • 9.
    Hipster Yuppie Yuccie ★Hipsters wear really nice clothes but have no actual job ★ They tend to congregate in very urban settings ★ They are connected globally thanks to the Internet ★ Yuppies have a job and receives a lot of money ★ They live in or near a large city ★ They wear designer suits, gucci preferably with slicked back or well cut hair ★ Yuccies use internet as methods of self- promotion ★ They support brands promote sustainable ★ They do not necessarily seek expensive brand names The whole point of hipsters is that they avoid labels and being labeled Psychotype yuppies show marked narcissistic traits Main approach of yuccie is being successful like yuppies and creative like hipsters 9
  • 10.
  • 11.
    Approximate Market Shareof Men’s care beauty products in Ukraine 51% 10%15% 24% According to the results of market research, it was identified the main players in the market of men's grooming. Ukraine with a retail share of 51% has benefits from a wide product portfolio of well- known popular brands such as Gillette and Old Spice, which are heavily advertised on television. Ukraine ranked second in men's grooming with a 15% value share thanks to its popular Nivea brand, which has presence in many beauty and personal care. Ukraine ranked third with a 10% value share due to its Axe, Rexona and Clear Vita ABE brands. Other players of men’s grooming market, e.g. L’oreal Men Expert, Oriflame, Fa men, Cool men, Welldone and etc. 11
  • 12.
    Category Mass MarketProfessional Luxury Hair Clear VITA ABE, Nivea Men, Head Shoulders, Axe, L’oreal Elseve, Well- done , Shauma, Shamtu, Estel Professional, Fructis Men Paul Mitchell, Kerastase, American Crew, Schwarzkopf Professional, Dax men, Murrays, Black&White, Loreal Professional Homme Acca Kappa, Barex Italiana, Tigi, C:ЕНКО, Korres Body Arko men, Axe, Dove Men+Care, Nivea men, Palmolive men,Rexona men, Welldone, Old Spice, Adidas, Витэкс, Estel, Fa men, Florena men Acca Kappa, Declare, Weleda, Mades Cosmetics, Yves Rocher, Kiehls Lumene Men, Armani Acqua Di Gio, Armani Code, Burberry, Calvin Klein Chanel Allure Homme, Clinique Happy for men, Dolce&Gabanna, Davidoff adventure Lacoste, Mercedes-Benz Face Nivea men, Gillette, Cool men,Lumene men, Welldone, Витэкс, Mades Cosmetics, Natura Siberica, L’oreal Men Expert, Arko men, Oriflame, Avon,Faberlic for men, Men Aggressia, Fa men, Florena men Academie Homme, Biotherm Homme, Phytomer, Declare, Vichy homme, Weleda, Uriage, Yves Rocher, Nuxe men, The Art of Shaving Collistar, Clinique for men, Shiseido Men, Dior Homme, Lancome Men, Aramis, Paco Rabanne Fragrance Adidas, Nike for men, Alain Aregon, Avon Acca Kappa, Acqua di parma, Angel Schlesser, Hugo Boss, Giorgio Armani, Paco Rabanne,Diesel,Chanel Homme, Dior, BVLGARI, Trussardi, DsQuared, Bugatti, Hermes, Ralph Lauren Men’s brands in Ukraine 12
  • 13.
  • 14.
  • 15.
    What are themain characteristics of selection products for shaving? Statistical Data from the questionnaires (60 men) 15
  • 16.
    Statistical Data fromthe questionnaires (60 men) The most popular shop for buying men's care products Who buys shaving 16
  • 17.
    How often buying productsfor shaving Men are very conservative in their cosmetics preferences and they often stick with the same products for years 17
  • 18.
  • 19.
    MAIN PLAYERS Manufacturer ofaccessories for shaving and body care. Each shaving system has its copyrighted name. ❖ One of the first clearly identified market sector: young, modern, focused on success and winning man. ❖ The pricing strategy is a premium focus. ❖ Gillette spends billions of dollars on ad policies. ❖ Use an Emotional Marketing Strategy. ❖ Managers of the company said that Product Quality is the core product offering, around which everything else revolves. The world's leading brand in the category of the care of men's skin. ❖ In 1980, men around the world were introduced to a new concept in skincare: an alcohol-free aftershave balm from NIVEA that did not irritate skin. ❖ Offers a wide range assortment: from shaving for sensitive skin to the tonic shower gel. Is a modern, dynamic, innovative brand. ❖ Brand appeared from 1957 in Turkey. ❖ Under this brand are manufactured shaving, after-shave, razors, deodorants and shower gels. ❖ Positioning the products as consumer goods at an affordable price. 19
  • 20.
    of market share 75% The MainSales of before/after- shaving products are of such brands as Gillette, Nivea Men, Arko, Florena, Avon, Men Expert, Men Agressia, Oriflame, Faberlic, etc.. of sales 50% In the categories structure prevails demand for Shaving Foam, sales of which represent about 50% The Main Trend in the After-Shave segment is an increase in the consumption of balms and reducing the demand for lotions. BUT lotions are still the most important and the biggest segment. Aftershave segment is growing much slower than balsam. Low demand persists after shave gels, despite their efficiency in use. Gels occupy the upper-price segment. 20
  • 21.
    Main Product Assortment Categories Type ofthe men’s cosmetic/Company Men Expert Nivea men Gillette Arko Skin Care: 3 2 - - Hydra energetic Lotion + - - - Face washing gel + + - - Cream + + - - Pre Shaving: 7 14 24 18 Shaving cream - + - + Shaving foam + + + + Shaving gel + + + + Post Shaving: 7 13 16 7 Balm + + + + Cream + + + + Lotion + + + + Gel + - + -
  • 22.
    PRICE Type of themen’s cosmetic/ Company Men Expert Nivea Men Gillette Arko Skin care Face washing gel 50 ml 220 UAH 160 UAH - - Pre Shaving Shaving foam 200 ml 70 UAH 65 UAH 50 UAH 35 UAH Post shaving Lotion 100 ml 156 UAH 135 UAH 130 UAH 65 UAH 22
  • 23.
  • 24.
    Distribution Channels The main playersuse all retail channels: from open markets to large retail chains. The main retail channels are supermarkets, specialty shops for the sale of cosmetics and household chemicals, and large shopping centers. Developing distribution channels such as direct sales (Avon, Oriflame, Mary Kay) and trade via the Internet (own online shop, online shop). 24
  • 25.
  • 26.
    Porter’s Five Forces Threat ofnew entrants (high) The market of cosmetic is one of the fastest growing and dynamic, threat of new entrants in Ukraine is high. Competitive Rivalry (high) There is strong competition between certain brands such as Nivea, Gillette, Argo etc. Any new cosmetics brand entering the market has a low barriers to entry, however has to face competition from several brands, which vary greatly depending on multiple factors Threat of Substitute Products (low) The suppliers of cosmetic products and cosmeceuticals for Ukraine are international distributors of cosmetic brands, large global retailers or individual local agents. The Bargaining Power of Buyers (high) In the cosmetic industry, we can differentiate between two types of buyers: B2B clients and B2C clients. The Bargaining Power of Suppliers (high) This conclusion has been made due to the fact that a substitute for cosmetics products does not exist. 26
  • 27.
  • 28.
    Digital Marketing Activities with the greatest commercial impact in 2016 -Marketing Automation (including CRM, behavioural Email marketing and web personalization) - Content marketing - Big Data (including market and customer insight and predictive analytics) - Mobile marketing (Mobile advertising, site development and apps) - Virtual Reality - Conversion rate optimisation (CRO) / Improving website experience - Social Media Marketing including Social CRM and Social Customer Care - Search Engine Optimisation - Wearables (e.g. Apple Watch, activity trackers, augmented reality) - Paid search marketing, e.g. Google AdWords Pay Per Click - Online PR (including influencer outreach) - Internet of Things (IoT) marketing applications 28
  • 29.
    Digital Trends 1 Improved people-based marketing optionswill give advertisers flexibility and control 2 Advertisers shift focus from workflow efficiency to targeting precision 3 Marketers will raise technology standards to close the mobile gap 4 Limitations of walled gardens will force advertisers and publishers to make tough choices 5 With ad blocking as the new normal, better targeting, formats and relevancy become essential 6 The race for data drivers bigger and bigger ad tech acquisitions 7 The era of first-party data creates demand for data- driven C-suite roles 8 Coalition loyalty programs will open doors to more valuable second-party data 29
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  • 31.
    Men’s interests Waste no moretime arguing about what a good man should be. Be one. Marcus Aurelius The great question that has never been answered and which I have not yet been able to answer, despite my 30 years of research into the feminine soul, is: ‘What does a woman want?’ Sigmund Freud Sports don’t build character. They reveal it. Michael Jordan I know a lot about cars, man. I can look at any car's headlights and tell you exactly which way it's coming. Mitch Hedberg I don’t have dreams, I have goals. Harvey Specter 31
  • 32.
    brand community inUkrainian Facebook№ 1 Every 20th Ukrainian Facebook user is a fan of Chernigivske page. from20% in 2013 till 41%in 2014 - Teaser ads - Apps “Yes, I am Ukrainian” “Chernigivske rules of communication” - Karaoke-app “Ukrainian songs” 32
  • 33.
    Integrated Digital Campaign for Lvivske beer song/ uploaded photos 10 / 1944 22136 unique users 43% viral effect 204 544 2314 page views 1 million total reach users attracted fans 91 000 viewers Ukrainian community of cra ters on FB was created to promote the beer “Lvivske Robert Doms”. 33 “Legendary words”
  • 34.
    Digital campaign for Discovery Channel Ukraine IDEA Userpasses the test, gets a result ( 1 of 11 Archetypes) and recommendation of the most suitable discovery channel’s content. PRIZE 4 cameras Go Pro RESULTS In 4weeks more than 450,000 unique visitors Viral traffic - 87 % (more than 390,00 unique visits) Viral coefficient - 7 (1 paid user brought 7 free visitors) The cost of a 5- minute-contact with customer less than - $0.05! 9,000,000 total viral campaign reach In 1 month Discovery Channel gained more than 50 New Requests from UKRAINIAN TV PROVIDERS IN 3 MONTHS DISCOVERY CHANNEL TV RATINGS IN UKRAINE ROSE ON 15%
  • 35.
    Digital Campaigns of Citroen: Virtual Race “NewCitroen C4 Facebook GrandPrix” +7000 New FANS 1 1 800 Likes + 66 % Market Share Say “NO” to someone else’s rules-Announce your manifest! Digital campaign of Nissan Micra from Lego: - To assembly the Lego model of Nissan - Video broadcast on the official website of Nissan - Online competition among visitors 1 2 Test-drive registrations X 9 times. 117% of promo sales plan
  • 36.
    Nivea Men DigitalStrategy - Ukrainian branded website - life hacking of personal care - promotional campaign “Success in details” Gillette Digital Strategy - digital POS - promotions “To become a G-man” 130 thousand codes 40 thousand people every 3rd participa nt 36
  • 37.
    AMBASSADORS & SLOGANS L’oreal MenExpert Gillette NIVEA FOR MEN ARKO David Beckham Roger Federer Tiger Woods Jonas Rivanno Arjun Rampal Expert at being a man. Fit. Sharp. Cool. The Best a Man Can Get The day begins from you! Pure Shave. Pure pleasure. Hugh Laurie Gerard Butler Ryan Reynolds Jimmy Bartel 37
  • 38.
    SMM (Jan 2016) L’oreal MenExpert Gillette NIVEA FOR MEN ARKO 237 N /A N/A 1 238 #lorealmenexpert N/A 2 095 344 N /A 3 273 52 435 4 036 353 429 843 (RU) N /A 5195 #niveamen 1 226 (UA) N /A N /A N /A N /A 38
  • 39.
    users cannot livea day without the Internet, and 59% are men devices with Internet connection of Ukrainians prefer social networks as a leisure. The majority of Ukrainians put in the 1-st place the desire to stay in shape and be healthy. 21,1 million 1,8 million 35% 45% Why Do You need Digital? 21,7 h. a week TV 20 h.VS Online The most active users - a youth EVERY DAY 70% 16-25 y.o ONLY 14% 40-59 y.o 39
  • 40.
    Consumer online feedback about L’orealMen Expert The responses from http://shop.loreal-paris.ua: The responses from http://rozetka.com.ua 40
  • 41.
    Statistical Data fromthe questionnaires (60 men) Using products of L'oreal Men Expert Knowledge of L’oreal Men Expert 41
  • 42.
    E-commerce environment ★ E-commerce inUkraine is estimated to be worth 2.7 billion euros. ★ About 70% of users are searching information about goods and services online. ★ Only 30% prefer online purchasing, and more than 40% is offline ★ it’s expected that the e-commerce volume will increase rapidly and will grow from 2.7 to 7 billion euros by 2018 42
  • 43.
    E-commerce trends inUkraine 1 2 3 More and more small and medium-sized businesses are opening own online shops. Their online assortment increased to 34.6 million of goods and services SMALL AND MEDIUM-SIZE BUSINESSES Powerful offline retailers go online. For example, companies such as WOG, Comfy, “Sea of Beer” go online, which is quite unusual for such players Ukrainians do more shopping online. Shopping in the product category "beauty" grew by 60 percent compared to the previous year MORE SHOPPING ONLINE 4 5 6 Ukrainians are searching the best deals in online shops. Ukrainians realized that they can not only buy goods in retail networks, but also beneficial to make purchases online. BEST DEAL Growing influence and share of mobile devices to online sales. The number of visitors from mobile devices increased more than 2.3 fold MOBILE DEVICES Growing customer service online. The powerful players with poor service can lose market share, in contrast, the smaller players will catch up to the leaders. CUSTOMER ONLINE SERVICE UNUSUAL PLAYERS 43
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    MEN EXPERT SWOT STRENGTHWEAKNESSES ➔ Positive reviews from customers; ➔ World Recognized and respected Ambassadors; ➔ The brand presents some unique products; ➔ Having the own online shop; ➔ Limited Merchandising; ➔ Low Social Media Performance; ➔ Absence of the web-site; ➔ No integration marketing communications; ➔ Weak content and on-line positioning; ➔ Low marketing budget; ➔ no SEO and no digital campaigns; OPPORTUNITIES THREATS ➔ Become the Best Interacting Digital Brand; ➔ Build long lasting relationship with customers; ➔ Attract new buyers, increase sales; ➔ Health and beauty branch is growing rapidly in e-commerce; ➔ High competition in the market; ➔ Ukrainian audience will not accept brand, due to high prices and economic situation nowadays; ➔ Problems with measuring and evaluating efficiency of digital campaigns; ➔ Wrong target audience focus.
  • 45.
    Thanks! any questions? We areSYNERGY TEAM | KNEU Anna Konovodova anna.konovodova@gmail.com Alina Astapenko alinaastapenko20@gmail.com Zekie Irikh zekie.irikh@gmail.com to be continued soon...