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SCOTT GALLOWAY NYU Stern Personal Care ® EXceRpt from the Digital IQ Index : Personal Care To access the full report, contact [email protected] September 3, 2013 SCOTT GALLOWAY NYU Stern Personal Care © L2 2013 L2ThinkTank.com ® EXceRpt from the Digital IQ Index : Personal Care Digital IQ Index®: To access the full report, contact [email protected] September 3, 2013 Personal Care Brave Old World Despite the rhetoric from Personal Care executives Point vs. Line regarding a brave new world of digital, to date, In 2010, Old Spice became the category’s digital role model with its “The online innovation has lagged behind other consumer Man Your Man Could Smell Like” video campaign. Three years on, the brand still leads the category with nearly 260 million views on its YouTube channel. sectors. Brands struggle to deconstruct the gestalt More recently, Dove’s “Real Beauty Sketches” joined the viral video hall of of broadcast media that defines CPG, and evidence fame with more than 163 million views to become the most-watched online suggests the industry continues to use digital to video advertisement ever.5 While the success of these, and other digitally-led accessorize an analog outfit. Specifically: initiatives, are inspiring, most category programs to date are points of light— characterized by brilliant creative and nimble execution—and not part of a • Just four percent of Beauty and Personal Care sales take place via larger integrated effort supporting a business strategy. e-commerce, bolstered by the Skincare (12.1 percent) and Fragrance (6.4 percent) categories.1 Oral Care, Hair Care, Deodorants, Tissues, and Sanitary Protection register less than two percent of sales online.2 Only six brands Digital IQ vs. Percentage Change in Market Share in the Index are experimenting with direct to consumer e-commerce, and 2011-2012, n=72 another four integrate a cart to transfer products to online retail partners. Less 20% than half of brands syndicate content to online channels Amazon.com and Market Leaders Market Challengers 15% Walmart.com. 2012 Market Share • A third of Personal Care sites suffer from broken links, 69 percent have not 10% updated their home pages in more than a month, and 12 percent link to out- of-date promotions and contests, resulting in category bounce rates of 54 5% Dove 3 percent. Kleenex Always Coppertone Neutrogena • Digital media investments across the category lack a cohesive strategy. The 0% Huggies Q-Tips Secret majority of display ads do not have a clear call-to-action: less than 20 percent (2011-2012) Crest Gillette -5% prompt the consumer to buy now, only 18 percent provide a coupon, and seven percent feature retailer co-branding. Three out of ten brands are still not -10% purchasing branded search terms. Percentage Change in Market Share Change in Market Percentage • While 71 percent of sites feature email sign-up, less than half send a welcome -15% email, and only 16 percent followed up with an email in a four-week period. R2=0.28318 -20% • Though more than a third of searches for Personal Care brand terms are 20 40 60 80 100 120 140 conducted from a mobile device,4 less than half of brands feature a mobile site, Digital IQ and no more than a third have Facebook content optimized for mobile. Note: Market Share represents market share in brand’s largest category; data unavailable for Caress, Gold Bond, and Pull-Ups 1. “Beauty and Personal Care in the US,” Euromonitor International, 2013. Source: “Beauty and Personal Care in the US,” Euromonitor International, 2013. 2. Ibid. 3. Alexa.com. 4. Google AdWords: Keyword Tool. 5. “Real Beauty Shines Through: Dove Wins Titanium Grand Prix, 163 Million Views on YouTube,” June 2013. © L2 2013 L2ThinkTank.com. Circulation of the report violates copyright, trademark and intellectual property laws. 2 ® EXceRpt from the Digital IQ Index : Personal Care Digital IQ Index®: To access the full report, contact [email protected] September 3, 2013 Personal Care Digital IQ = Market Share Growth Data suggest online success translates to market. Old Spice has recorded market share gains in every Personal Care category it operates in since 2009.6 Dove has grown from 13.6 percent share in 2009 to 15.9 percent in 2012 in the Bath & Shower category (with Market Share vs. Digital IQ similar gains in Deodorant), while Feeble soap brands Ivory, Coast, 2012, n=72 and Zest have listed substantial declines in share year over year (-7 160 percent, -33 percent, and -11 percent, respectively).7 Smaller, recent category entrants Burt’s Bees, Method, and Tom’s of Maine are 140 Dove Burt’s Bees Oral-B punching above their weight class to land in the Gifted designation Method Olay despite less than two percent market share in their largest category.8 120 Burt’s Bees and Tom’s of Maine are two of only six brands in the Toms of Maine Personal Care study that are experimenting with direct-to-consumer 100 Kleenex e-commerce. Method blends strong online content and purchase- 80 orientation across its site and social media channels. All three have registered market share gains since 2010.9 Digital IQ 60 ® Digital IQ Index : Personal Care 40 Ivory Our thesis is the success of Personal Care brands is inextricably Sure Skintimate Overachievers linked to digital competence. This study attempts to quantify the 20 Soft & Dri Underachievers Near Regression Line digital performance of 75 U.S. Personal Care brands. Our aim is to 0 provide a robust tool to diagnose digital strengths and weaknesses 0% 10% 20% 30% 40% 50% and help managers achieve greater return on incremental Market Share investment. Like the medium we are assessing, our methodology is dynamic, and we hope you reach out with comments that improve Note: Represents market share in brand’s largest category; data unavailable for Caress, Gold Bond, and Pull-Ups our approach and findings. Source: “Beauty and Personal Care in the US,” Euromonitor International, 2013 You can reach me at [email protected]. SCOTT Galloway Professor of Marketing, NYU Stern Founder, L2 6. “Beauty and Personal Care in the US,” Euromonitor International, 2013. 7. Ibid. 8. Ibid. 9. Ibid. © L2 2013 L2ThinkTank.com. Circulation of the report violates copyright, trademark and intellectual property laws. 3 ® EXceRpt from the Digital IQ Index : Personal Care Digital IQ Index®: To access the full report, contact [email protected] September 3, 2013 Personal Care About the Ranking The Methodology 25% 25% 25% 25% Site Digital Marketing Mobile Social Media Functionality and Content (80%): Search, Display, and Email Marketing Efforts Compatibility, Optimization, and Marketing on Brand Presence, Community Size, Content, Technology Search: Smartphones and Tablets and Engagement Navigation and Customer Service/Store Locator Traffic, SEM, SEO, Web Authority Mobile Site: Facebook: Product Page Compatibility, Functionality, Navigation Likes, Growth, Tabs and Applications, Retailer.com Investments: Checkout/Third-Party Retail Handoff Responsiveness, Interaction Rate, Mobile Merchandising on Brand and Product Pages, Mobile Applications (iPhone, iPad, and Android): Compatibility Brand Translation (20%): Search Visibility Availability, Popularity, Functionality Aesthetics, Messaging, and Visuals Twitter: Email: Innovation: Followers, Growth, Frequency, Online Voice (Provided by VSA Partners ) Frequency, Content, Promotion Partnerships with Third-Party Apps, Shopper Marketing Initiatives, Recent Brand Initiatives YouTube: Blog & Other User-Generated Content: Views, Number of Uploads, Subscriber Growth, Mentions, Sentiment Viral Videos, YouTube Search Advertising & Innovation: Emerging Social Media: Display, Retargeting, Cross-Platform Initiatives Google+, Instagram, Pinterest, Tumblr Digital IQ Classes Genius 140+ Gifted 110–139 Average 90–109 Challenged 70–89 Feeble <70 Digital competence is a point of Brands are experimenting and innovating Digital presence is functional Limited or inconsistent adoption of Investment does not competitive differentiation for these brands. across site, mobile, and social platforms. yet predictable. Efforts are mobile and social media platforms. match opportunity. Creatively engineered messaging reaches Digital presence is consistent with brand often siloed across platforms. Sites lack inspiration and utility. consumers on a variety of devices and image and larger marketing efforts. many online environments. © L2 2013 L2ThinkTank.com. Circulation of the report violates copyright, trademark and intellectual property laws. 4 ® EXceRpt from the Digital IQ Index : Personal Care Digital IQ Index®: To access the full report, contact [email protected] September 3, 2013 Personal Care GENIUS Gillette Dove GIFTED Digital IQ Ranking Burt’s Bees Huggies Colgate Olay Genius, Gifted Pampers Oral-B Secret RANK BRAND DIGITAL IQ RANK BRAND DIGITAL IQ RANK BRAND DIGITAL IQ Neutrogena Old Spice Crest Genius Gifted Pull-Ups Method Tampax 1 147 3 136 10 125 AXE Tom’s of Maine U by Kotex Procter and Gamble The Clorox Company Johnson & Johnson Nivea Puffs Aveeno AVERAGE Eucerin Always 2 142 3 136 11 121 Johnson’s Baby Kleenex Q-tips Unilever Kimberly-Clark Procter & Gamble Listerine Degree Coppertone Luvs Scope Suave 5 135 12 120 Veet Rembrandt CHALLENGED Colgate-Palmolive Procter & Gamble Jergens Schick Aquafresh Arm & Hammer Edge GUM 6 131 13 119 Sensodyne Vaseline Dial Procter & Gamble Kimberly-Clark Caress Irish Spring Kotex St. Ives Gold Bond Softsoap 6 131 14 115 Playtex FEEBLE Banana Boat Procter & Gamble Ecover Speed Stick BIC Nair Curél Lever 2000 Barbasol 8 130
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