Professional Certificate in Marketing (Level 4)
521 – Assessing the Marketing Environment
Case Study
June 2015 and September 2015
Men’s Toiletries, with a focus on Procter and Gamble
© The Chartered Institute of Marketing 2015
Page 2 Assessing the Marketing Environment – Case Study
Guidance notes for candidates regarding the prepared analysis
The examination is designed to assess knowledge and understanding of the Assessing the Marketing Environment syllabus in the context of the relevant case study. The examiners will be marking candidates’ scripts on the basis of the tasks set. Candidates are advised to pay particular attention to the mark allocation on the examination paper and plan their time accordingly.
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The following data has been based on real-life organisations, but details have been changed for assessment purposes and do not necessarily reflect current management practices of the industries or the views and opinions of The Chartered Institute of Marketing. Figures used in tables may differ as they have been compiled from different sources, using a range of criteria.
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Page 4 ASSESSING THE MARKETING ENVIRONMENT
CASE STUDY
Preparation
In preparation for the examination you will need to analyse the Men’s Toiletries case study material provided. You will be given a clean copy of the case study on the day of the examination, but you MUST bring your analysis with you. Your written analysis MUST NOT exceed FOUR A4 sides and MUST include your CIM membership number on each page. The written analysis MUST be submitted as an appendix on completion of the examination and attached with a treasury tag to your answer book.
Page 5 Men’s Toiletries, with a focus on Procter and Gamble
The Company
Legal form
Procter and Gamble (P&G) is an American multinational consumer goods and healthcare products company, based in Cincinnati, Ohio, in the United States. It is one of the largest consumer goods companies in the world. Founded in 1837, it now owns more than 300 brands, which are sold in over 180 countries across the world. Well-known brands available in the UK include Gillette, Old Spice and Head & Shoulders.
P&G is a public limited company listed on the New York Stock Exchange. In 2012, P&G recorded US$ 83.68 billion in sales. Fortune magazine awarded P&G the top spot on its list of ‘Global Top Companies for Leaders’, and ranked the company at fifteenth place on the ‘World's Most Admired Companies’ list.
As of July 1, 2011, P&G structured itself into two ’Global Business Units’ – Beauty and Grooming, and Household Care. 26 of P&G's brands have more than US$ 1 billion in net annual sales, according to its 2011 Annual Report. Four of these – Gillette, Head & Shoulders, Olay and Wella – are in the Men’s Toiletries sector.
Brief history and key features
William Procter, a candle-maker, and James Gamble, a soap-maker, emigrated from England and Ireland respectively. They settled in Cincinnati initially and met when they married sisters. Their father-in-law persuaded his new sons-in-law to become business partners and, on October 31, 1837, as a result of the suggestion, Procter and Gamble was created.
During the American Civil War, the company won contracts to supply the Union Army with soap and candles. P&G began a profit-sharing programme for the company's workforce in 1887. By giving the workers a stake in the company, the management correctly assumed that they would be less likely to go on strike. The company expanded and built factories across the United States. P&G also began to diversify its products and advertise more widely: as radio became more popular in the 1920s and 1930s, the company sponsored a number of programmes which, as a result, often became known as ‘soap operas’.
The company moved into other countries, including the UK in 1930, and introduced numerous new products and brand names over time. The company introduced Tide laundry detergent in 1946 and Prell shampoo in 1947. In 1955, Procter and Gamble began selling the first toothpaste to contain fluoride, known as Crest.
Procter and Gamble acquired a number of other companies that diversified its product line and significantly increased profits. These acquisitions included Folgers Coffee, Norwich Eaton Pharmaceuticals (the makers of Pepto-Bismol), Richardson-Vicks, Noxell (Noxzema), Shulton's Old Spice, Max Factor, and the Iams Company, among others. In January 2005, P&G announced the acquisition of Gillette, forming the largest consumer goods company and pushing Unilever into second place. This added brands such as Gillette razors, Duracell, Braun, and Oral-B. In 2008, P&G branched out into the record business with its sponsorship of Tag Records, as an endorsement for TAG Body Spray.
Page 6 P&G exited the food business in 2012 when it sold its Pringles snack food business to Kellogg's for US$ 2.75 billion, after the US$ 2.35 billion deal with former suitor Diamond Foods fell short. The company had previously sold Jif peanut butter and Folgers coffee in separate transactions to Smucker's.
P&G’s stated strategic purpose, according to its Annual Report and Accounts, is to: ‘provide branded products and services of superior quality and value that improve the lives of the world’s consumers, now and for generations to come. As a result, consumers will reward us with leadership sales, profit and value creation, allowing our people, our shareholders and the communities in which we live and work to prosper.’
P&G’s Health and Beauty division saw its UK operating profit decline by more than 65% from £79.4 million in 2011 to £27.1 million in 2012. According to the company’s Annual Report for 2012, this was due to weaker growth in developed markets, increased competition and weaker consumer demand. Globally, P&G reported a 3% increase in group turnover from US$81.1 billion in 2011 to US$83.7 billion in 2012, driven by growth in developing markets. The Beauty and Grooming segments, which contain brands offering men’s toiletries, contributed 24% and 10% of total net sales respectively.
Social responsibility and sustainability
‘Doing the right thing’ is the foundation of Procter and Gamble’s Purpose, Values, and Principles. This includes: paying competitive wages, treating employees and those of their suppliers with respect, preventing conflicts of interest, ensuring consumer privacy and maintaining financial stewardship. Procter and Gamble see sustainability as being about delighting their consumers with innovative products and services that are better for the environment.
Other social aims include providing health and hygiene education to children around the world and responding to natural disasters. As the world’s largest consumer products company, it recognises its responsibility to ‘do the right thing’ and create change through innovation. Procter and Gamble has key aims regarding environmental sustainability and has focused its efforts on conservation of resources through increasing the use of sustainably sourced, renewable materials and renewable energy in products and operations; for example, by using less energy, water, and materials when products are manufactured, and requiring fewer resources when they are used in the home. In addition to efforts to conserve energy, it uses a portfolio approach to determine the best energy solutions for operations. Wind, solar, biomass, and geothermal are important aspects of Procter and Gamble’s sustainability programme.
The company’s social efforts include both key policies and practices, as well as programmes that support local communities. These programmes address two key areas for people around the world:
Comforts of Home, where Procter and Gamble has partnered with Habitat for Humanity in its efforts to provide decent, safe and affordable places to live for families in need, by sponsoring home builds around the world. Thousands of its employees have helped build and clean homes for first-time owners, to provide a home for their families.
Health and Hygiene, where Procter and Gamble’s ‘Children’s Safe Drinking Water Program’ (CSDW) uses powdered water-purifying technology to turn dirty, potentially
Page 7 deadly water into clean, drinkable water. To date, CSDW has reached more than 70 countries and saved tens of thousands of lives.
Through this work, Procter and Gamble aims to focus core competencies to address critical social needs, such as those outlined in the United Nations Millennium Goals focused on housing and sanitation, as well as child and maternal health.
Marketing activities
Procter and Gamble (P&G) increased its above-the-line advertising spend on men’s toiletries by almost 250% from £960,000 in 2011 to £3.3 million in 2012. P&G predominantly used television and press advertising, which accounted for 39% and 35% of the company’s advertising spend for 2012, respectively. The shaving brand, Gillette, dominated P&G’s advertising expenditure on men’s toiletries.
In April 2013, P&G announced a marketing partnership with Formula 1 team Vodafone McLaren Mercedes, for its Gillette brand, reinforcing its associations with F1 racing. P&G’s Head & Shoulders brand also sponsors McLaren driver Jenson Button.
In the same month, Old Spice launched a new advertising campaign to mark the launch of its new line of scented soap bars. The advert was inspired by soap adverts, with jingles from the 1980s and 1990s showing how men can wash their bodies in a manly way.
In March 2013, P&G teamed up with the UK social entertainment company We R Interactive to launch an online football game for its grooming brand Gillette. In September 2012 P&G teamed up with Google to develop a football-focused YouTube channel, Gillette Football Club, which sponsors football on YouTube in EMEA.
In addition to complementary products, Gillette’s primary focus has been on the extension of its core business and the marketing programmes that support it. Going beyond simple brand advertising, many of the initiatives and activities introduced by Gillette created a synergy between product development and marketing strategy. For example, building on the success of the Fusion and Fusion Power razor and blades, Gillette released the Fusion Power Phantom (Stealth in the United Kingdom) in February 2007. The Phantom razor featured a redesigned handle and a darker colour scheme than the original Fusion Power.
On July 14, 2010, Old Spice launched the fastest growing online viral video campaign ever, garnering 6.7 million views after 24 hours, ballooning to over 23 million views after 36 hours. Old Spice's agency created a bathroom set in Portland, Oregon, and had its TV commercial star, Isaiah Mustafa, reply to 186 online comments and questions from websites like Twitter, Facebook, Reddit, Digg and others. The campaign ran for 3 days. In March 2013, Old Spice began its campaign starring Mr Wolfdog, a wolfdog with an electronic collar that allowed him to speak to humans, acting as the marketing director of Old Spice. In addition to making videos to promote the new Old Spice Wild Collection, he conducted live interviews over YouTube to get fans to write, create and submit ads, in addition to appearing on Xbox Live on March 12, 2013.
Market structure and key competition
New products have an increasingly important role to play in an industry where traditional staples show little sign of breaking new ground. Latest research from Mintel on the European men’s grooming market shows that while the market for shaving products and
Page 8 razors in Europe’s largest economies has remained largely stagnant, sales of skincare products are booming – up an impressive 45% from €289 million in 2005 to €420 million in 2010.
Germany and Spain have seen the greatest growth in male skincare sales, with five-year increases of 100% and 76%, respectively. No other sectors within the grooming market have registered the same outstanding performance. Per capita spend on male grooming products is highest in Spain, at €61.7, driven by the relatively small size of Spain’s male population and their infatuation with fragrances. Italy has the lowest per capita spend, amounting to €41.5.
The men’s toiletries market saw a strong increase in value sales (6.9%) in 2012, driven by high profile product development from Dove Men + Care, among others, and innovative advertising campaigns. However, the market saw minimal growth in 2013, with just 0.2% estimated annual growth. Although the level of product innovation is set to match that seen in previous years, smart shopping behaviours, such as stocking up during times of promotional offer, are limiting value sales growth. Fashion trends have also played a part, with men taking a relaxed attitude to grooming. Beards are becoming increasingly popular, resulting in the proportion of men using shaving preparations decreasing.
P&G products and product development
Head & Shoulders
Procter and Gamble researchers started making a new anti-dandruff shampoo in 1950. Nearly a decade of research went into making a new formula, which introduced pyrithione zinc into the shampoo. It was first introduced to the US market in November 1961 as a blue- green shampoo formula.
There are now nine different Head & Shoulders varieties for varying hair types, and the formula has since changed colour to white. The Head & Shoulders range of products has been extended, with the addition of 2in1 shampoos to provide both anti-dandruff and conditioning benefits. Hair Endurance 2in1 Anti-Dandruff Shampoo and Conditioner has been designed to keep hair looking full, thick and conditioned while addressing the causes of dandruff.
Gillette
Gillette Sensor was first released in 1990 and was the first razor to have spring-loaded blades, helping to prevent cuts and allowing for a closer shave. Sensor Excel followed in 1993, featuring ‘Microfins’, which were said to raise facial hairs, making for a closer shave.
Mach3 was the first three-blade razor, introduced in 1998, featuring five improved microfins, spring blades and a pivoting head. It has since been improved with Mach3 Turbo, with ten microfins, Mach3 Turbo Champion and M3Power, a battery-powered version.
Gillette Fusion is a five-bladed razor released in 2006. The Fusion has five blades on the front, and a single sixth blade on the rear for precision trimming. Its marketing campaign was fronted by the sports stars Roger Federer, Thierry Henry and Tiger Woods. Gillette Fusion Power is a motorised version of the Fusion. Fusion ProGlide and Fusion ProGlide Power were launched on June 6, 2010 in North America. The ProGlide series features re- engineered blades with edges that are thinner than Fusion and are finished with low-
Page 9 resistance coating which, the company claims, allows the blades to glide more easily through hair.
Gillette Fusion ProGlide Clear Shave Gel is a transparent non-foaming gel that allows the user to see how to shave and edge accurately. It has a ‘rich formula with advanced lubricants for incredible glide, comfort and smoothness, working equally well on face and body’.
Gillette’s product range also offers: Face Wash, Moisturiser, Cooling & Revitalising Balms, aftershave lotions and six different varieties of deodorant available variously in spray, stick and roll-on formats.
Old Spice
Procter and Gamble manufactures the Old Spice range, having acquired the brand in 1990 from Shulton, Inc. The first Old Spice product, introduced in 1937, was intended for women. Old Spice for men followed in 1938.
Old Spice's buoy-shaped bottle cologne has been its staple product, available in its original scent as well as newer Pure Sport. In 2006, Old Spice introduced an all-new fragrance, OS Signature, which won the magazine FHM's 2006 Grooming Award for Best Sporty Fragrance. Old Spice Red Zone products include a ‘Scratch-and-sniff’ version of the Signature fragrance.
By 2010 Old Spice had three main lines of grooming products, each featuring a variety of products and scents. ‘High Endurance’ is promoted as a basic grooming line, ‘Classic’ is aimed at people who prefer the original scents of Old Spice, and ‘Red Zone’ is aimed as a higher-end line, including washes and sprays with a ‘time-released scent system’.
Wella
Wella Shockwaves Ultra Strong Tuff Stuff Gel ‘holds up even in demanding situations and offers long-lasting sweat- and heat- resistant style with natural shine’. The pack features the Facebook address for the brand.
The Market
Main players and competitors
Alliance Boots
Alliance Boots was formed in 2006, following a merger between Alliance UniChem plc and Boots Group plc. The pharmacy-led health and beauty retailer Boots operates more than 3,100 stores in the UK, of which over 3,000 have a pharmacy, as well as 554 stores in the Republic of Ireland, the Netherlands, Lithuania and Thailand. At 31 March 2013, the company employed over 108,000 people in 25 countries.
Alliance Boots’ group revenue decreased by 2.6%, from £23 billion in 2012 to £22.4 billion in 2013 due to the strength of sterling against the company’s other operating currencies.
The Health and Beauty division saw its revenue decline by 2.5%, from £7.7 billion in 2012 to £7.5 billion in 2013, largely due to branded medicines being superseded by lower priced generic medicines after their patents expired. Boots offers men’s toiletries under the own-
Page 10 label brands No7, Botanics, Boots Essential, Boots Therapy (shower gel), Boots Max (shaving products), Boots Anti-Dandruff (shampoo) and Boots Style Works (hair styling).
Estée Lauder
Estée Lauder, founded in 1946 by Estée Lauder and her husband Joseph Lauder, has been listed on the New York Stock Exchange since 1995, but the Lauder family continues to hold the majority share.
Estée Lauder offers men’s toiletries under the brands Clinique Skin Supplies for Men, Aramis, Lab Series, Aveda Men, Tom Ford and Ermenegildo Zegna Uomo. In addition to fragrances, Aramis also sells shaving preparation products, including shaving soap, hair care and styling products, deodorants and bath soap.
Estée Lauder Cosmetics Ltd, the parent company’s UK and Republic of Ireland subsidiary, reported sales growth of 6.1%, from £329.9 million in 2011 to £416.8 million in 2012. According to the company’s annual report, this was driven by increased sales activity and the positive impact of cost savings throughout the year.
L’Oréal
The L'Oréal Group is the world's largest cosmetics and beauty company. It owns 27 global beauty brands and operates in 130 countries. Its men’s toiletries brands include L’Oréal Men Expert, L’Oréal Studio, Garnier, Biotherm Homme, Giorgio Armani, Vichy Homme, Kieh’s and The Body Shop for Men.
L’Oréal UK reported that its revenue increased by 2.3%, from £774.5 million in 2010 to £792.3 million in 2011. Operating profit decreased by 1%, from £101.9 million in 2010 to £100.9 million in 2011, while overall profits declined by 4.5% to £72.5 million.
L’Oréal describes its mission as ‘offering all women and men worldwide the best of cosmetics innovation in terms of quality, efficacy and safety. It pursues this goal by meeting the infinite diversity of beauty needs and desires all over the world’.
Unilever
Unilever is an Anglo–Dutch multinational consumer goods company. Its products include foods, beverages, cleaning agents and personal care products. It is the world's third-largest consumer goods company, measured by 2011 revenues (after Procter and Gamble and Nestlé) and the world's largest manufacturer of ice cream. One of the oldest multinational companies, it currently has operations in over 100 countries. Unilever owns over 400 brands, with 25 of its largest brands accounting for over 70% of total sales.
Unilever sells men’s toiletries under several brands, including Lynx, Dove, Radox, Sure, Vaseline, Brylcreem, VO5, BRUT and Toni & Guy.
Unilever’s global group turnover increased by 10.5% between 2011 and 2012, from €46.5 billion to €51.3 billion. The Personal Care unit saw strong growth of 17%, driven by innovation, the launch of Unilever’s brands into new markets, and a strong performance from acquired brands.
Page 11 Social trends
Men continued to take a more relaxed attitude to grooming in 2013, with a less polished image and beards becoming more popular. Half of men do not shave every day, but this figure drops to 36% among men aged 55 and over, indicating that older men prefer a clean- shaven look. However the increasing male population in this age group will not necessarily help the shaving-preparation sector, as older men are currently the least likely to use these products.
Fewer men felt the need to dress to impress, dropping from 42% in 2012 to just under a third (32%) in 2013. Many high profile male celebrities have been sporting a more casual grooming style during this time, which may be an influencing factor. Men under the age of 35 are the most likely to want to dress to impress and are accordingly more likely to complement this approach through using grooming products.
Those living in Inner and Greater London are more likely to style their hair; only 15% of Londoners agree with the statement ‘I tend not to style my hair’, compared to 35% in the East and West Midlands. Research indicates that London is a city which is experimental with fashion, and its residents are likely to be more comfortable experimenting with different looks and hairstyles.
Six in ten male toiletries users feel being well-groomed gives them a confidence boost. High- earners think they look more professional when well-groomed, with those earning over £50,000 per annum 10% more likely to link such an appearance with looking professional than those in lower earnings brackets. Nearly half of 25-34-year-old male toiletries users like to experiment with new looks, while 29% take grooming inspiration from celebrities or sports stars. Men of this age are most likely to have a beard/stubble (42% compared with an average among all ages of 28%).
Consumer attitudes and trends in this market
Men’s grooming is attracting more attention, but still made up only 8% of the overall global beauty and personal care market in 2012. Strong growth of over 7% in 2012 – thanks to good media coverage, wider adoption of male-specific products and greater availability – has kept the category in the spotlight.
Men’s toiletries caught up with men’s shaving, and sales of the former were expected to surpass those of the latter for the first time in 2013. Men’s skin care is the fastest growing category within men’s grooming, with an increasing number of men using male-specific products to take care of their skin.
Traditionally, razors and blades has been the dominant category within men’s grooming, contributing nearly 40% of total men’s grooming revenue in 2012 and growing by 8% globally the same year. Growth rates and sales are slowing in Western Europe and North America, partly due to the on-going stubble trend on the one hand and the rising cost of shaving on the other. However, men’s razors and blades continue to benefit from emerging markets like Russia, India and Brazil.
Gillette dominates the market, commanding a more than 50% share of the category globally, thus acting as a significant barrier to entry. Both Unilever’s Axe and Dove brands have been extended into men’s shaving. Axe has collaborated with both Schick and Philips Norelco to introduce triple-blade razors in refill as well as disposable options, and an electric
Page 12 range with interchangeable heads that can trim, style and shave. It has also introduced a shaving gel, and a hydrator which acts as a 2-in-1 post-shave gel and moisturiser, aiming to tap into the growing convenience trend.
Men’s deodorants remained the second biggest category within men’s grooming in 2012, achieving the same 8% rate of growth as men’s razors and blades. Manufacturers of deodorants over the past five years have increasingly aligned them with fragrances, launching body spray versions of their most popular scents.
The extension of deodorant brands into men’s shaving can be seen as a natural progression in providing a more complete regime for their male consumers. Men’s shaving brands like Gillette and Schick have been searching for new ways to find a competitive edge via the introduction of 3-in-1 shaving systems and clear shaving gels, with Gillette also filing a body shaving patent.
In the UK, hygiene staples – such as deodorant and shampoos – appeal to the highest proportion of men, with over nine in ten using these products. Skincare products have seen the most growth in usage year-on-year, perhaps partly attributable to the harsh winter weather of 2012/13. Facial moisturisers have also seen an increase, with two thirds of men now using these products. Younger men in particular are driving this trend, with 85% of men aged 25-34 now using a moisturiser.
The proportion of men using shaving preparations fell by 4% between 2012 and 2013, with 28% of men growing a beard over this period. Hair colourants were used by 4% more men during the same 12 months, but only 2% of men aged 55 and over used colourants, compared to three in ten of those aged under 35.
Three in four men use deodorant once a day or more, although older men tend to apply less often. With the number of men aged 55 and over increasing, this may help to explain a slight fall in value sales for this category. Hair styling products are used once a day by 16% of men, rising to 22% amongst those who work full-time, suggesting an increased interest in grooming for those looking to have a professional impact.
Marketing activities of competition
Advertising spend of the main men’s toiletries retailers peaked in 2010 at £38.6 million, and then declined to £30.2 million in 2012, a contributing factor to sales virtually stalling at only 0.2% growth overall. Advertising spend in 2013 was on course to match the 2012 level, with £19.4 million spent in the first eight months.
Unilever still accounts for 63% of toiletries advertising spend, despite its spend falling by a quarter from 2011 to 2012. The fact that in the first eight months of 2013 Unilever spent nearly as much on advertising as in the whole of 2012 reveals its individualistic – and somewhat enigmatic – approach to this marketing discipline. Unilever also led new product development in 2012, with new product launches from Lynx and Dove Men + Care. Lynx’s advertising campaign, in support of its Apollo range, centred around a competition to win an astronaut training course and trip to space.
P&G saw one of the biggest annual increases in advertising spend in 2012, spending over £3 million compared to under £1 million in 2011. P&G sponsored the London Olympics in 2012, with a multi-platform campaign consisting of TV, print, PR and online activity.
Page 13 TV advertising takes the largest proportion of total advertising spend, 72% in 2012 and 71% in the first eight months of 2013. Both the Lynx Apollo and Dove Men + Care were widely promoted on TV during 2012. Retail value sales of the Dove Men + Care range increased by 33% from 2012 to 2013, thanks to Unilever’s high promotional investment. Press advertising has taken the second highest share of advertising spend in recent years, although in 2013 the indications were that this would be overtaken by cinema screen advertising for the first time. Internet advertising spend, while still at low levels compared with other platforms, has increased by 55.4% over the five years to 2013.
Technology and innovation
More than half of men express little or no interest in trying new products if they were to become available. Innovations such as body moisturisers with skin healing ingredients, or hair styling products to help prevent hair loss, appeal to only 18% and 16% of men, respectively. However, men who already use a wide range of toiletries show greater interest. So men who do not use any products are likely to keep it that way, while growth and expansion is most likely from those already well engaged with the market.
The innovation most likely to interest men who currently use ten or more toiletry products is the aforementioned body moisturiser with skin-healing properties for post-sports use. Only 30% of those who suffer from hair thinning or loss express interest in hair styling products that could help prevent their condition, perhaps a surprisingly small proportion. Hair transplants remain an expensive option for men, and are not always seen to be successful, so prevention rather than cure seems to be a more promising area to continue exploring. Some 17% of male toiletries users express an interest in personal care products carrying more masculine fragrances. Within this overall amount, men who live in large households and/or have young children show the greatest interest.
Users interested in male make-up remain relatively few. Some 6% are interested in make-up to hide blemishes and dark circles, while 3% are interested in eye-enhancing products. A slightly higher proportion, 9%, is interested in a clear matt nail product to keep nails neat and healthy, rising to 15% among 16-24-year-olds.
External economic issues
While the male population is growing, creating a bigger consumer base for men’s toiletries, the age structure of this growing population presents more mixed challenges. The UK male population over 55 is set to increase, while younger age groups are set to decrease: over 55s are set to outnumber men aged 15-34 by 642,000 in 2018. Many newer products are consumed largely by these younger men, while traditional deodorants, shampoos, shower gels and shaving preparations are the only products to be used by over half of men aged 55 and over. Introducing newer products to older men remains difficult, but will be increasingly important.
The 45% increase in male unemployment from 2008 to 2013 created a tougher environment for men’s toiletries, as grooming was and is seen as most important by those who feel the need to maintain a professional image. There being fewer men in the workplace has led to flat sales, although with unemployment set to decline over the next five years this trend may be positively affected.
Disposable income has grown slowly over the past five years, increasing by £257 billion in total from 2008 to 2013, as the UK recovers from economic crisis. The speed of growth is
Page 14 set to gather pace over the next five years, with higher disposable incomes providing more money to spend in the discretionary male toiletries sector, and the potential to trade up to products with new and added benefits.
Page 15 Men’s Toiletries, with a focus on Procter and Gamble
Appendix 1
Market size, forecast and share
Growth stalls in 2013
Men's Toiletries – UK – October 2013 – Market Size and Forecast
UK retail value sales of men’s toiletries, at current and constant 2013 prices, 2008-18
% annual £m at 2013 % annual Total Index Index change prices change
£m
2008 529 90 n/a 627 106 n/a
2009 523 89 -1.1 603 102 -3.8
2010 534 91 2.1 594 101 -1.6
2011 551 93 3.2 604 102 1.7
2012 589 100 6.9 606 103 0.3
2013 (est) 590 100 0.2 590 100 -2.6
2014 (fore) 594 101 0.6 578 98 -2.0
2015 (fore) 604 102 1.7 572 97 -1.0
2016 (fore) 613 104 1.5 565 96 -1.3
2017 (fore) 623 106 1.7 558 95 -1.1
2018 (fore) 636 108 2.1 554 94 -0.7
Source: Based on IRI/Mintel Men's Toiletries, UK, October 2013
Page 16 Appendix 2
Lynx remains market leader
Men's Toiletries – UK – October 2013 – Market Share
Brand value shares in men’s toiletries, years ending July 2012 and 2013
Year Year ending ending %
July July change 2012 2013 % % £m £m 2012-13 share share
Lynx (Unilever) 151 26 145 25 -3.9
Nivea (Beiersdorf) 61 10 64 11 4.7
Sure (Unilever) 56 10 58 10 3.1
Gillette (P&G) 52 9 46 8 -11.8
L’Oréal 35 6 34 6 -4.9
Right Guard (Schwarzkopf & Henkel) 32 5 31 5 -1.8
Dove Men + Care (Unilever) 17 3 22 4 32.5
Own-label 21 3 20 3 -5.3
Adidas (Coty) 16 3 14 2 -11.5
Other 148 25 156 26 5.6
Total 589 100 590 100 0.2
Source: Based on IRI/Mintel Men's Toiletries, UK, October 2013
Page 17 Appendix 3
Attitudes towards appearance and grooming
Men continue with a relaxed attitude to grooming
Attitudes towards appearance, July 2012 and July 2013
Base: 1,000 male internet users aged 16+ (2012 and 2013)
‘Thinking generally about appearance, which of the following statements, if any, apply to you? Select all that apply.’
% 69 Any Well Groomed 70 49 I prefer to be clean-shaven 48
28 I always keep my nails/cuticles neat and tidy 30 21 It's really important to me that my hair looks good 25
13 I don't like people touching my hair 13
12 I always dress to impress 13
76 Any relaxed 80
50 I don’t shave every day 49 32 I don't feel I need to dress to impress 42 29 I tend not to style my hair 37 28 I have a beard/stubble 27 23 I don't have to be clean shaven to look professional 25
3 2013 2012 None of these 3
Source: Based on IRI/Mintel Men's Toiletries, UK, October 2013
Page 18 Professional Certificate in Time Management Marketing: Grade Descriptors Concept 40% Application 30% Evaluation 20% and Presentation Level 4 10% This grade is given for develop appropriate produce well-structured, draw valid conclusions plan, review and Grade A work that meets all of research strategies for coherent and detailed and make informed complete work within the assessment criteria secondary research arguments in response to recommendations the specified at Certificate level to a given brief, using deadlines/time and secure at least 70% selectively identify valid and marketing terminology reflect on and evaluate produce work of an and demonstrates a relevant information from a fluently own learning across exceptional and candidate’s ability to: wide range of relevant module and assess how professional standard sources for the discipline evidence insight, this will affect current of presentation, understanding and and future practice format and tone evidence comprehensive application of key knowledge and principles understanding of the marketing discipline at express ideas Certificate level persuasively, applying appropriate marketing constructively consider and terminology and concepts effectively analyse a wide accurately range of information for a specified task apply a wide variety of illustrative examples to underpin concepts used
This grade is given for develop an appropriate produce logical arguments draw reliable conclusions plan, review and Grade B work that meets all of research strategy for in response to a given and make sound complete work within the assessment criteria secondary research brief, using marketing recommendations the specified at Certificate level to terminology correctly deadlines/time and secure at least 60% identify valid and relevant reflect on and evaluate produce work to a and demonstrates a information from a suitable evidence sound own learning on aspects high standard of candidate’s ability to: range of relevant sources for understanding and of the module and presentation, format the discipline application of key assess how this will and tone principles affect current and future evidence detailed knowledge practice and understanding of the express ideas clearly, marketing discipline at applying appropriate Certificate level marketing terminology and concepts accurately consider and analyse a range of information for a apply a variety of specified task examples to illustrate findings
This grade is given for develop an appropriate produce arguments in draw limited conclusions complete work within Grade C work that meets research strategy for response to a given brief, and make some the specified enough of the secondary research using sufficient marketing recommendations deadlines/time and assessment criteria at terminology produce work of an Certificate level to identify relevant information reflect on and evaluate acceptable standard secure at least 50% from a minimum number of evidence a basic own learning on aspects of presentation, and demonstrates a sources for the discipline understanding and of the module and format and tone candidate’s ability to: application of key assess how this will evidence a satisfactory level principles affect future practice of knowledge and understanding of the outline ideas and concepts marketing discipline at using appropriate Certificate level marketing terminology
analyse a minimum number apply examples to support of sources of information for findings a specified task
This grade is given for an inability to develop an limited use of marketing superficial conclusions work not being Grade D borderline work that appropriate research terminology and recommendations completed within the does not meet enough strategy for secondary which lack depth and specified of the assessment research a lack of basic insight deadlines/time and criteria at Certificate understanding and errors in level to secure a pass insufficient sources of application of key little evaluation of presentation, format and is within the band information being used to principles learning and/or impact and tone 45-49%. This may be underpin research for the on future practice due to: discipline insufficient use of marketing terminology repeating case material and/or incomplete grasp rather than evidencing of key concepts knowledge of the marketing discipline at Certificate level limited use of examples to support findings a lack of detail and argument when analysing information for a specified task
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