Camille Brooks!

Phoenix Huang!

IndustryOverview

• IntheU.S.,salesofshampooandcondi5onerreached$5.3billionin2007,anincreaseof6.4%incurrentpricesfromthepreviousyear.

• A2008Mintelresearchforecaststhattheshampooandcondi5onermarketwillincrease24%by2012.

• However,thebathproductssegment(bubblebathandbathfragrances),isdecliningasconsumersswitchtomoreliquidbodywashes.

Competitive!

Analysis!

Compe33on

• GivenE‐care’spricerange,weselectedtheindustry’scompe5torsbasedonprice,analyzingprivateandpremiumlabels.

• Twocategories:‐“lowprice,”withanaveragepriceof$2.25‐“highprice,”withanaveragepriceof$4.00+

• Duetothelackofshelfpresence,genericbrandswerenotincludedinourcompe55veanalysis.

• WealsoconductedabriefsurveyamongE‐care’spoten5altargetgroup.

Low‐EndCompe3torsTopcompe(torswithaveragepriceof$2.25

High‐EndCompe3torsTopcompe(torswithaveragepriceof$4.00

PerceptualMap

Product

Usage!

BubbleBath• Trendsforecastadeclineinsales,asconsumersarefindingliquidbodysoapsmoreversa5leandcosteffec5ve(“Soap,BathandShowerProducts,”2008).

Source:Mintel/basedonInformationResources,Inc.InfoScan®ReviewsInformation

Shampoo&Condi3onerUsageofshampooandcondi3onerbyage:

• Womenaregenerallymoreac5velyinvolvedinhairproductsthanmen.

• Womenperceivethemselvesashaving/experiencingmorehairproblemsthanmen.

• Age18‐24generatesthehighestaverageuseofbothshampooandcondi5oner.

TypesofShampoo&Condi3onerUsedbygender:

• Womentendtousemorespecializedshampooproducts atahigherratethanmen.

• Eventhoughgrayhairisratedasthehighestconcernforhairproblems,bothmenandwomenclaimedaninsignificant/lowestpercentagesinusinggrayhair

specializedshampoo.

SWOT

Analysis!

Strengths&Weaknesses

Strengths:•  Within the bath products segment, companies with an

emphasis on natural and children’s products are in demand.

•  Since there are multiple niches within the shampoo category, consumers are willing to pay for products that will address their own personal hair needs.

Weaknesses:• The health and beauty industry is very cluttered so it makes

it challenging for a new brand to stand out.

•  The bath products segment, in particular, is declining as more consumers switch to liquid body washes.

Opportuni3es&ThreatsOpportunities: •  Although children’s products and natural/organic bath products are

currently in demand, there seems to be little to no organic children’s bath products.

•  Most female consumers in our research findings think smell is the most important factor for them to make the purchasing decision; this will be a good opportunity to go in developing an enduring smell shampoo.

Threats: •  Big companies have large budgets for advertising spending.

•  More retailers are trying a variety of approaches to strengthen the mass market specialty category by creating their own product lines, particularly in the bath and skin care categories.

E-care!

BubbleBath•  Women aged 25-34, with children between 0-7 years old.

- Personal traits: High strung and tense, adventurous, aggressive, average impulse buyers, average brand loyals, early adopters.

•  Blacks and Asians show a high propensity to use bubble bath.

•  59% parents responded that they choose the brand of bubble bath; 39% responded they decide with children.

•  Are 37% more likely to use bubble bath about 4-5 times in a week.

•  Bottles that double as toys are considered desirable.

•  Importance of natural products is stated.

Shampoo&Condi3oner•  Women aged 18-34

- Personal traits: Careless, demanding, egocentric, headstrong, tense and excitable, early adopters, impulse buyers ,not brand loyal.

•  33% more likely to use shampoo 8-9 times a week; conditioner 7 or more times a week.

•  Nearly 80% report using shampoos and conditioners specifically designed for their hair type.

•  92% stated that they prefer shampoos that lather up well. •  Colors and smell play an important role in purchase decision. •  Scents mentioned as being "relaxing": cucumber, coconut, lavender,

watermelon, raspberry, rosemary, rose, lily and vanilla; fruity scents.

•  Natural ingredients like aloe, cocoa butter, special herbs considered important. Also, respondents looked for alcohol-free shampoos.

•  Emphasis on natural and organic, environmentally friendly products.

Product&FeatureRecommenda3ons

Shampoo&Condi(oner

• Size:12.5oz• Top3shampootypes

‐Forcolortreated/permedhair75%‐Forextrabody75%‐Fordamagedhair63%

• Top3condi5onertypes‐Foroilyhair75%‐Deepcondi5oning48%‐Fordryhair42%Leave‐inhaircondi5onerspreferredoverrinseout

ShampooboKleprototype

Product&FeatureRecommenda3ons

BubbleBath

• Size:12.5oz

• Packaging/Design:Animalshapedbocles.

• Color:Packagecolormimicsthefeaturedanimal’scolor.

FutureApplica3ons

•  Developarangeofboclesizes(20oz,30oz,50oz).

• Differentsegmenta5ons:age,gender,ethnic.

• E‐carecanincludecouponsonthebocleforadiscountforfuturepurchases.

• Socialcauses:Teamupwithalocalnon‐for‐profitorganiza5onwhereapor5onoftheproceedswillbegivenbacktothecommunityororganiza5on.

• Lineextensions:hairsprays,hairdyes,detanglers,gels,handsoaps,moisturizers,etc.

Advertising

Strategy!

Posi3oningStatement

“To health and beauty-conscious individuals, E-care is the personal care brand that provides natural care to the mind, body and spirit through its dedication to nature and the community.”

Crea3veIdea•  Tagline: “Nature’s answer for….”

- Examples Nature’s answer for tranquil hair Nature’s answer for restful hair Nature’s answer for a charming skin

- To be used at all touchpoints including ads and shampoo bottles.

•  Logo & Design:

- To be used at all touchpoints including ads and shampoo bottles.

MediaPlanningIn Store:

•  Using sachets as free samples for the products.

•  The shelf itself can be made ‘earthy’, by putting plants or ivy leaves, butterflies and other things of nature in and around the shelf.

•  Pamphlets: In order to inform consumers of E-care’s uniqueness, pamphlets will be available on the shelf through a dispenser.

•  E-care representative: An E-care shampoo representative will be available on occasion at Wegmans. Time frame: weekdays between 5-7 pm and on weekends.

•  Product Integration: E-care shampoos should be placed in both the shampoo and the skin care aisles.

MediaPlanning

Outdoor: •  Product demonstrations:

In the parking lots of supermarkets and malls, we will set up booths where there will be a product demonstration by an E-care representative. The rep would actually wash consumers’ hair with E- care shampoos. Free samples of the product will also be distributed to consumers who do not wish to have their hair washed.

MediaPlanning

Internet:

•  Website:AwebsitewillbedesignedforE‐care’slineof products.

• Customizedpicture:‐ ConsumerscoulduploadtheirpicturesandplacethemintothesilhouecelogooftheE‐carelineofproducts.

‐Willalsohavetheop5ontoplayaroundwiththekindofhairtheywant,sendthepicturetoafriend,orevencustomizeafriend’spicture.

MediaPlanningContest:

•  Conducted within 1-3 months of the product launch. Consumers would answer a question “If E-care is nature’s answer to a beautiful and healthy you, what is your answer to nature?”

•  The winner gets to be the spokesperson of the brand for a period of 6 months. The spokesperson can come in TV ads or online video ads.

Banner ads: •  Banner advertisements would be placed on various

relevant sites to attract consumers to the E-care website.

Questions?!