14 ANALYSIS
proposition based on finding something different, and sticking by it. Its range of deodorants, for example, is marketed with the moisturising claim Dove was originally known for, whereas most of its rivals focus on providing a high degree of protection.
In addition to functional credibility, Dove has forged an emotional connection with consumers with the Campaign for Real Beauty, which it pursues relentlessly and refreshes continuously. Its Real Beauty Showcase for example, in association with star photographer Mario Testino, was launched after discovering that 71% of women wish the media did a better job of portraying women of diverse physical appearance. Dove’s Self-Esteem Project, meanwhile, connects to culturally resonant issues around femininity and masculinity, and has reached 23 million people in 139 countries, a figure it has started to emphasise in communications to illustrate the impact of what it does.
Several other mass-market brands, including No.7, Cover Girl and Pantene, have also begun waving the self-esteem banner – moving away from stressing their credentials to adding depth to claims that they are doing good for the world. Avon’s campaign against domestic violence has broadened out into the Rethink praise project, for instance, based on proprietary research which showed that 80% of praise given to girls is based solely on their appearance.
It is questionable as to whether these brands’ aims to enhance wellbeing will all translate into the value gains that Dove has seen, but they have recognised that it would have a detrimental effect on consumer perceptions if they failed to take a stand on important issues.
Meaningful innovation
Olay has seen an 8% rise in its value over the last year. In an effort to reach a younger audience it partnered with Cosmopolitan and Seventeen magazines, placing QR codes alongside editorial that link to additional content and purchase options. Also appealing to young consumers,
Garnier (+5%) launched a campaign for recycling beauty products called Rinse, Recycle, Repeat, which had social media influencer Remi Cruz as its face. Head & Shoulders (+3%) responded to consumers’ environmental concerns in turn, with a new bottle made from recycled beach plastic. Brands also observed trends and developments in ingredients, and incorporated them into their products. Pantene introduced a premium hair range that uses micellar technology to remove impurities, for example, while in the US Colgate and Crest both launched
PERSONAL CARE EUROPE
One size does not fit all Mass-market brands are countering the impact of smaller disruptors by using their scale, salience and maturity to launch highly targeted ranges of their own. Pantene has introduced a line of shampoo for African-American hair, emphasising its beauty and multiplicity of styles. Dove has launched a therapeutic skin care range called DermaSeries for people with skin conditions, while Nivea’s Urban Skin Range is specifically formulated to counter the effects of pollution.
toothpastes with foaming agents designed to clean in hard-to-reach places. All but one of the 15 most valuable personal care brands in the world increased their worth in the last year, largely by successfully identifying and amplifying their strengths. However, both the luxury and mass-market segments need to be aware of competition from a groundswell of niche local players. As consumers become empowered by the vast amount of information available online, mass approval is becoming less important than a brand’s ability to understand and cater for their specific needs. A well-known name no longer gets a brand as far as it used to.
The ‘new luxury’: this time it is personal Today’s consumers are increasingly savvy, and their growing knowledge of the market, and of what is and is not good for them, means they are more prepared to pick smaller brands. This has resulted in the increasing prominence of brands that meet very specific needs and have a singular, authentic reason for existing.
These brands offer quality, compelling stories, natural ingredients, and competitive prices. Some are geared towards specific ailments, such as psoriasis or eczema. They are taking advantage of the low cost of entry offered by ecommerce to achieve wide reach and make themselves easily available, with many selling on Amazon. Young consumers view these brands as innovative, and create social media buzz around them. If they can provide a good customer experience, they have the potential to grow very quickly. Recognising the significance of these niche brands, Unilever has begun to concentrate on fragmentation within its portfolio. Recent acquisitions include Schmidt’s Naturals, a manufacturer of soap and deodorant with natural provenance, Sundial, which owns a brand that produces shea butter based products tailored to African-American skin, and Carver Korea, which taps into the fashion for Korean beauty regimes which are very tailored, intensive and ingredients-oriented.
The ambition to be democratic, and cater to as many people as possible with different variants, is one that Dove is perhaps best placed to achieve. The brand equity it has developed though its purpose and authenticity mean it will continue to be profitable. Other brands however, which are used to being able to trade off being ‘good enough’ and ‘known enough’, will find it harder to maintain growth against their niche rivals. To reflect movements in the marketplace, all brands need a comprehensive, data- informed understanding of how consumers shop online and offline, how they use products, and their changing values, attitudes and ideas of beauty. Instead of targeting segments and types of people, brands need to see individuals and their different sides.
Mapping individual customer journeys and interactions plays a key role in the ability to communicate in relevant ways, optimise relationships, and provide a compelling experience. It is likely that the same person shops across online, mobile and bricks and mortar stores, so as much energy and budget should be invested in adding excitement to the in-store experience as in having an impactful presence on Instagram.
Brands must strike the perfect balance between simplicity and personalisation. The rise of naturalness as an ideal had led to people simplifying their personal care regimes and using fewer products – but they still expect brands to provide the solutions to their complex needs. Collaboration with entrepreneurs,
retailers and tech partners is an effective way of meeting this challenge. Both luxury and mass-market brands alike can benefit from working with smaller brands to co- create new products, and stay fresh and innovative.
The power in the personal care market has shifted away from manufacturers and retailers to consumers. In the midst of this change, brand loyalty can be fragile – but it is still possible to build brand equity and sustain value growth.
PC September 2018
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84 |
Page 85 |
Page 86 |
Page 87 |
Page 88 |
Page 89 |
Page 90 |
Page 91 |
Page 92 |
Page 93 |
Page 94 |
Page 95 |
Page 96 |
Page 97 |
Page 98 |
Page 99 |
Page 100 |
Page 101 |
Page 102 |
Page 103 |
Page 104 |
Page 105 |
Page 106 |
Page 107 |
Page 108 |
Page 109 |
Page 110 |
Page 111 |
Page 112