BRANDSTORM TEAM : I DE A SHACK

YOUNG EDGY

ECLECTIC INDEPENDENT

TWISTED SEXY

REBELLIOUS UNEXPECTED

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.

In the United States, there has been a dramatic increase in the manufacturing and sales of male-targeted personal care products within the past few

years. 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 2

In 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 and

are gaining share within the market.” 1

What’s in?

Anti aging & anti wrinkle products

Mass premium manufacturers already in the men’s skincare market have

increased the range of anti-aging and anti-wrinkle products for men

(Ex. Lancôme Men, Moxie for Men, and Neutrogena Men)

All in one products

Men are attracted to the convenience of all-in-one products. Many new product

extensions 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)

Masculinity

Marketers are shifting away from the metrosexual image, and more towards

portraying the product as more masculine.

1 Mintel, Men's Toiletries - US - November 2007

2 Mintel - Medicated Skincare Products - US - May 2009

TEAM IDEA SHACK

FDM (Food Drug Mass Merchandiser) Sales of Men’s Toiletries 1

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

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. 4

The men’s skincare market is predicted to double between 2007 and 2010 3

Skincare dominates in the male-targeted

product category

1 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, Men's Toiletries - US - November 2007

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.

TEAM IDEA SHACK

1 http://blogskinny.com/?More-men-opting-for-skincare-products&AID=2437. 2008. 3 Mintel - Medicated Skincare Products - US - May 2009

2 Synovate Male Beauty Survey, October 2008. All males (n=4,893)

Generally speaking, men consider their looks very important. Many men attribute handsome good looks to good hygiene and fresh breath. Young

men, especially 18 - 29 year olds have no problems with using moisturizers and other male beauty products. In fact, studies show 9 out of 10 men

think 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 by

Synovate, 56% of men use beauty products created for and marketed to men. Men are moving away from purchasing unisex products, and looking

towards products that will cater to their specific needs. 2

The same study showed that men who carry themselves with confidence are generally considered

handsome or good looking, and men feel that their appearance gets better with age. Other interesting

findings 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 moisturizers

Men are now focusing more on their appearances than ever. 3

Skin care products such as face washes and moisturizers seem to play an

important role in this attitudinal shift. There always seems to be a market

for 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. This

has helped spur growth in the skin care product segment. Male consumers use skin care products with an acne-fighting component, as they seem to

be 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 bring

young men into the skin care fold early on, so that they remain loyal customers. 3

With good looks comes great power

Skin care products are almost recession-proof

TEAM IDEA SHACK

No particular type of facial cleansing or medicated product dominates usage amongst men. 1

This 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 complete

skincare in two or three steps. Facial cleansing trumps acne care and anti-aging in terms of attributes desired in skincare products. Women are more

likely 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 use

bar soap or body wash for the face as well. This

is probably due to convenience or indifference.1

As men age, they are less likely to use facial

cleansing or medicated skincare products. Older

skin is usually more delicate and vulnerable to

chemicals found in medicated skincare. Also, older men are less likely to be plagued with acne or the other skin issues for which medicated skincare is

designed. 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 these

demographics with facial products designed to combat specific problems.

Different age groups prefer different facial cleansing methods

Younger 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 across

age groups—over two in five male respondents use acne care cleansing or medicated products, indicating that acne is an issue for many adult males

and not only teens. Upscale, science-based acne products offer potential to grow sales as adult men with acne concerns may be more willing and able

to 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

Products with the highest market penetration among this demographic are foaming face washes, scrubs, cleansing cloths, creams, and toner. Males

are even more likely than females to purchase products that have some form of acne care. 3

1 Mintel, Men's Toiletries - US - November 2007 3 Mintel - Medicated Skincare Products - US - May 2009

2 Mintel - January 2009

Men want convenience

[Male] Attitudes towards product attributes and purchasing behavior 2

Young men choose skin care products based on acne care and the ability to truly scrub one’s skin clean.

TEAM IDEA SHACK

In 2007, Nivea, L’Oreal, Neutrogena were the only major brands that offered

multiple beauty products formulated specifically for men. These three brands

accounted for over 84% of the entire skin care market. Since then, many other

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-

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

that include subjects such as sport, entertainment, career advice and fashion as

well as tips on dating and relationships to promote the Nivea for Men product

range. 3 Nivea is targeting young men and hoping for greater consumer involve-

ment through the interactive website and social networking sites.

1 Mintel, Men's Toiletries - US - November 2007 3 http://www.cosmeticsdesign.com/Products-Markets/Nivea-taps-into-men-s-grooming-with-website-launch

2 http://www.niveaformen.com

FDM manufacturer and brand sales

of men’s skincare products, 2007 1

Growing trend alert:

More brands are trying to involve their consumers

more with their products and their brand name by

creating an interactive presence online. The focus is

not only on the products, but also lifestyle issues.

TEAM IDEA SHACK

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.

1 http://lorealparisusa.com 4 http://www.neutrogena.com/econsumer/ntg/productslanding.browse?segment=men

2 http://www.lorealparisusa.com/men/lorealmen.asp?directlink= 5 http://www.getjackblack.com

3 http://www.allbusiness.com/marketing-advertising/branding-brand.html 6 Total Face Segment, Men, NPD Beauty Trends

Jack Black’s All Over Wash

Products: All-over body wash 33 oz for face, hair, and body; Cologne;

Tweezers; Grooming sets; Lip Balm

The look: Very masculine; it’s “based on masculine icons like upscale

scotch and cigars.” 5 Products contain natural and organic ingredients.

Market share: 5.8% of skin care product category 6

Positioning / image: Jack Black positions itself as a man’s product care

line. They offer simple, uncomplicated products that serve to provide

more than one function for face care.

Price: ranges from $15 to $65

Clinique for Men

Products: Wide variety; Deodorant, Face Scrub, Face Wash, Scuffing

Lotion, Post-Shave Beard Smoother, and many more

The look: Black and grey product line. Clean, but manly.

Market share: 32% SOM in 2008 6

Positioning / image: Affordable, quality products that offer an alter-

native to Unisex products. Clinique positions itself as a company

that performs thorough research of products before distribution.

Price: Varies from $14 - 30

TEAM IDEA SHACK

Strengths: Diesel is a well established premium brand with a solid

image. In the past, Diesel has used free samples as a way to entice the

target market to try its new product. Free samples have the widest appeal

to consumers and usually encourages them to try a new product 1 The

company is present in over 80 countries with over 5,000 points of sale and

more than 300 monobrand stores, 2 and in addition to all their store

locations, Diesel offers the convenience of an online store where

consumers may purchase clothing and accessories.

TEAM IDEA SHACK

Weaknesses: Diesel has not been traditionally known for its

beauty care lines and therefore it will be difficult to penetrate

that particular market. Diesel is not offered in mass

merchandisers such as Wal-Mart, and having a line available at

Wal-Mart would allow for a significant amount of exposure to the

general public. Because Diesel is a selective brand, it will not be

sold in such FDMx retail outlets in contrast to its competitors

therefore limiting its sales potential.

Opportunities: Men under the age of 45 are the more likely to change

their look regularly, and will be more willing to change the products they

use to update their look. This makes them a favorable target for Diesel. 3

Men like convenience. There is a growing popularity of having all-in-one

beauty items for men. In order to penetrate the market once more, Diesel

needs to solidify its product line by ensuring that the general public believes

it is a high quality product. Recently there has been a shift in the way

consumers purchase natural and organic products. 21% of men look

for natural ingredients and this number is expected to grow. Since Word of

Mouth is the biggest influence on men, it is important that people believe in

the validity of the product. 1 6 out of every 10 men use soap and water as

their facial cleansing regimen. This poses a potential opportunity for

marketers to target men by making them aware of the benefits of using a

proper facial cleansing regimen. 3 The majority of male respondents see

a difference in the efficiency and quality of products.1 Therefore Diesel

has an opportunity to carve a niche in this market and establish itself as a

premiere beauty care competitor based on the already well-established

brand image.

Threats: Although deodorants / antiperspirants and shaving

cream / gel show high penetration among male respondents, less

than 2 in 5 men use any other type of beauty product. This lack of

perceived benefit or ambivalence is a major challenge to the

market. 1 Research show that converting men to users of non-

standard beauty products, is a significant challenge to the market.

While most men agree that it is important to be attractive

to the opposite sex, very few would care about looking any

younger. Because men tend to think they look more attractive as

they age, there is little room for the anti-aging segment of skin

care to grow. In the current economic downturn, consumers may

stray away from premium brands and more towards cheaper

alternatives.

Diesel should create a premium men’s

product that is convenient, stylish, efficient,

and natural.

1 Mintel, Men's Toiletries - US - November 2007

2 http://www.diesel/info/history.php 3 Mintel, Facial Skincare - US - January 2009

THANK YOU

An Unconventional Approach

Diesel is all about twisting the norm and reinventing conventional products. Because of the increasing saturation of the market, Diesel must create an

innovative 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 in

the 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 complete

marketing strategy for this product line.

The New Product Line

Based on a thorough analysis of the men’s beauty product market, consumers, and potential competitors, it is evident that skin care is the most viable

opportunity that Diesel can take advantage of. The shift towards an increase of beauty care product usage amongst men has allowed for a segment

that 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 care

line. Idea Shack has utilized all the secondary research that has been conducted, and concludes that a skin cleansing regimen would best suit

the brand in terms of maintaining quality. Other cheaper grooming products such as shaving cream and deodorant may not be feasible markets for

Diesel to penetrate in the early stages of establishing their grounds in the men’s beauty product category.

The Target

Young 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 have

an 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 the

workplace setting. Many marketers realize that this area is quickly gaining vitality so it is important to penetrate

the market early on.

- TEAM IDEA SHACK