Medicated Skincare - US - December 2012

SCOPE AND THEMES
What you need to know
Definition
Data sources
Sales data
Consumer survey data
Advertising creative
Abbreviations and terms
Abbreviations
Terms
EXECUTIVE SUMMARY
The market
Figure 1: Total U.S. retail sales and fan chart forecast of medicated skincare market, at current prices, 2007-17
Market factors
Cost-conscious consumers have put more stock in private label offerings
Total population growth key market driver, but more susceptible consumer groups could present the market with opportunities
Growing ethnic populations may help market in the future
Retail channels
Figure 2: Share of U.S. retail sales of medicated skincare products, by channel, at current prices, 2010 and 2012
Key players
Figure 3: Share of MULO sales of medicated skincare products, by leading companies, 52 weeks ending Sept. 9, 2012
The medicated skincare consumer
Incidence of skin irritations is high
Figure 4: Incidence of skin irritations, by personal experience, August 2012
Consumers rely on past experience and doctors’ expertise to identify skin irritations
Figure 5: Identification method for skin irritation, August 2012
Purchasing OTC products or visiting the doctor most common treatment method
Figure 6: Treatment method for skin irritation, August 2012
Discomfort and concern over visual appearance two biggest consumer frustrations
Figure 7: Frustrations with personal skin irritations, August 2012
Enhanced performance benefits most desired new product attributes, but interest in enhanced beauty benefits presents an opportunity for the market
Figure 8: Any interest in new product attributes in medicated skincare products, August 2012
What we think
INSIGHTS AND OPPORTUNITIES
Focus on preventive maintenance
Place a greater emphasis on emotional benefits
Continued delivery system innovation
ISSUES IN THE MARKET
How can the market evolve beyond single-use purchases?
How can medicated skincare product companies assuage growing consumer concern around the chemicals that are currently being used in products?
Are there ways for products to compete more effectively with consumers’ reliance on doctors when it comes to treating skin irritations?
TREND APPLICATIONS
Trend: Sense of the Intense
Trend: Girly Men
2015 Trend: East Meets West
MARKET SIZE AND FORECAST
Key points
Medicated skincare market sales expected to grow at steady rate in the coming years
Sales and forecast of medicated skincare market
Figure 9: Total U.S. retail sales and forecast of medicated skincare market, at current prices, 2007-17
Figure 10: Total U.S. retail sales and forecast of medicated skincare market, at inflation-adjusted prices, 2007-17
Fan chart forecast
Figure 11: Total U.S. retail sales and fan chart forecast of medicated skincare market, at current prices, 2007-17
MARKET DRIVERS
Key points
Shaky consumer confidence has caused more consumers to look to private label offerings
Figure 12: University of Michigan’s index of consumer sentiment (ICS), 2007-12
Total population key market driver, but aging Baby Boomers and children present opportunities
Figure 13: Population, by age, 2007-17
Growing ethnic populations may help market in the future
Figure 14: Population, by race and Hispanic origin, 2007-17
COMPETITIVE CONTEXT
Doctors and dermatologists present competition in this category
Figure 15: Treatment method for skin irritation, August 2012
Self-healing or “do nothing” also present competition for the purchase of these products
SEGMENT PERFORMANCE
Key points
Market largely dominated by lip balm/cold sore treatments and anti-itch creams
Sales of medicated skincare products, by segment
Figure 16: Total U.S. retail sales of medicated skincare market, by segment, at current prices, 2010 and 2012
SEGMENT PERFORMANCE – LIP BALM/COLD SORE TREATMENTS
Key points
Lip balm/cold sore treatments best-performing segment in the market
Figure 17: Personal use of lip care products, by gender and age, April 2011-June 2012
Sales and forecast of lip balm/cold sore treatments
Figure 18: Total U.S. retail sales and forecast of lip balm/cold sore treatments, at current prices, 2007-17
SEGMENT PERFORMANCE – ANTI-ITCH CREAM
Key points
Anti-itch cream segment growing steadily
Sales and forecast of anti-itch cream
Figure 19: Total U.S. retail sales and forecast of anti-itch cream, at current prices, 2007-17
SEGMENT PERFORMANCE – WART REMOVERS
Key points
Wart removers have struggled, but growth expected in the coming years
Sales and forecast of wart removers
Figure 20: Total U.S. retail sales and forecast of wart removers, at current prices, 2007-17
SEGMENT PERFORMANCE – INSECT FIRST AID PRODUCTS
Key points
Insect first aid product segment struggling due to competition posed by anti-itch creams and “do nothing” scenario
Sales and forecast of insect first aid products
Figure 21: Total U.S. retail sales and forecast of insect first aid products, at current prices, 2007-17
RETAIL CHANNELS
Key points
Majority of medicated skincare purchases taking place in mass merchandisers, supercenters, and drug stores
Sales of medicated skincare products, by channel
Figure 22: Total U.S. retail sales of medicated skincare products, by channel, at current prices, 2010-12
RETAIL CHANNELS – SUPERMARKETS
Key points
Supermarket sales experience uneven growth, but there may be opportunities to drive consistent growth
Supermarket sales of medicated skincare products
Figure 23: U.S. supermarket sales of medicated skincare products, at current prices, 2007-12
RETAIL CHANNELS – DRUG STORES
Key points
Drug stores have been experiencing growth and will likely continue to do so in the coming years
Drug store sales of medicated skincare products
Figure 24: U.S. drug store sales of medicated skincare products, at current prices, 2007-12
RETAIL CHANNELS – OTHER RETAIL CHANNELS
Key points
Majority of medicated skincare sales taking place through mass merchandisers, club stores, and supercenters
Other retail channels sales of medicated skincare products
Figure 25: U.S sales of medicated skincare products, through other channels, at current prices, 2007-12
LEADING COMPANIES
Key points
Medicated skincare market highly saturated and competitive
MULO manufacturer sales of medicated skincare products
Figure 26: MULO sales of medicated skincare products, by leading companies, 2011 and 2012
BRAND SHARE – LIP BALM/COLD SORE TREATMENTS
Key points
Abreva boasts growth, ChapStick and Blistex yield sales to smaller lip balm players
Figure 27: Brands of lip care products used, by gender and age, April 2011-June 2012
MULO sales of lip balm/cold sore treatments
Figure 28: MULO sales of lip balm/cold sore treatments by leading companies, 2011 and 2012
BRAND SHARE – ANTI-ITCH CREAM
Key points
Cortizone 10, Gold Bond, and Aveeno all boast growth
Private label offerings maintain strong presence in this segment
MULO sales of anti-itch cream
Figure 29: MULO sales of anti-itch cream by leading companies, 2011 and 2012
BRAND SHARE – WART REMOVERS
Key points
MULO wart remover sales see some growth, but overall performance indicative of a relatively stagnant category
MULO sales of wart removers
Figure 30: MULO sales of wart removers by leading companies, 2011 and 2012
BRAND SHARE – INSECT FIRST AID PRODUCTS
Key points
After Bite commands the greatest share of this segment; very little growth seen overall
MULO sales of insect first aid products
Figure 31: MULO sales of insect first aid products by leading companies, 2011 and 2012
INNOVATIONS AND INNOVATORS
Largest product segment leads with most product launches
Figure 32: Medicated skincare product launches, by product category, 2007-12
Claims associated with lip care products indicative of category evolution
Figure 33: Claim categories associated with new product launches for lip care products, 2007-12
Functional claims most common claim type seen in products designed to treat skin conditions
Figure 34: Claim categories associated with new product launches for skin conditions, 2007-12
Enhanced therapy performance promise and beauty benefits continue to drive category
Anti-aging lip treatments
Anti-itch treatments more commonly available in spray format
All-natural offerings and inclusion of natural ingredients
Greater availability in private label offerings
MARKETING STRATEGIES
 OVERVIEW OF THE BRAND LANDSCAPE
Brand analysis: Abreva
Figure 35: Brand analysis of Abreva, 2012
Online initiatives
TV presence
Figure 36: Abreva television ad, 2012
Figure 37: Abreva television ad, 2012
Brand analysis: ChapStick
Figure 38: Brand analysis of ChapStick, 2012
Online initiatives
Brand analysis: Cortizone 10
Figure 39: Brand analysis of Cortizone 10, 2012
Online initiatives
TV presence
Figure 40: Cortizone 10 Quick Shot television ad, 2012
SOCIAL MEDIA
Key points
Figure 41: Key brand metrics, November 2012
Market overview
Brand usage and awareness
Figure 42: Usage and awareness of selected medicated skincare brands, November 2012
Brand satisfaction
Figure 43: Satisfaction with selected medicated skincare brands, November 2012
Interaction with brands
Figure 44: Interaction with brands, November 2012
Motivations for interacting with brands
Figure 45: Why people interact with medicated skincare brands, November 2012
 ONLINE CONVERSATIONS
Figure 46: Percentage of consumer conversation, by medicated skincare brands, Aug. 1- Nov. 1, 2012
Figure 47: Tweet from CVS Beauty Club account, 2012
Figure 48: Online mentions, by selected medicated skincare brands, by week, Aug. 1-Nov. 1, 2012
Where people are talking about medicated skincare brands
Figure 49: Selected medicated skincare brands, mentions by page type, Aug. 1-Nov. 1, 2012
What are people talking about?
Figure 50: Selected medicated skincare brands, mentions by type of conversation, Aug. 1-Nov. 1, 2012
Figure 51: Major areas of discussion surrounding medicated skincare brands, by day, Aug. 1-Nov. 1, 2012
Figure 52: Major areas of discussion surrounding medicated skincare brands, by type of website, Aug. 1-Nov. 1, 2012
 BRAND ANALYSIS
ChapStick
Figure 53: ChapStick key social media indicators, November 2012
Key online campaigns
What we think
Burt’s Bees
Figure 54: Burt’s Bees key social media indicators, November 2012
Key online campaigns
What we think
Aveeno
Figure 55: Aveeno key social media indicators, November 2012
Key online campaigns
What we think
Lubriderm
Figure 56: Lubriderm key social media indicators, November 2012
Key online campaigns
What we think
Mederma
Figure 57: Mederma key social media indicators, November 2012
Key online campaigns
What we think
Abreva
Figure 58: Abreva key social media indicators, November 2012
Key online campaigns
What we think
INCIDENCE OF SKIN IRRITATIONS
Key points
Skin irritations common across demographics
Figure 59: Incidence of skin irritations, August 2012
Personal incidence of skin irritations
Figure 60: Incidence of skin irritations personally experienced, by gender and age, August 2012
Incidence of skin irritations for others in the household
Figure 61: Incidence of skin irritations experienced by someone else in household, by gender, August 2012
Figure 62: Incidence of skin irritations, among parents by age of child, August 2012
INITIAL IDENTIFICATION OF ISSUES
Key points
Doctor identification and prior experience main sources for identifying issues
Figure 63: Identification method for skin irritation, by gender, August 2012
Figure 64: Identification method for skin irritation, by age, August 2012
Parents with young children more likely to utilize a wide array of identification methods
Figure 65: Identification method for skin irritation, among parents by age of child, August 2012
TREATMENT METHODS
Key points
Medicated skincare products main treatment method for many consumers
Figure 66: Treatment method for skin irritation, by gender, August 2012
Older consumers more apt to purchase products, younger consumers more likely to visit the doctor
Figure 67: Treatment method for skin irritation, by age, August 2012
Parents with younger children more likely to visit the doctor
Figure 68: Treatment method for skin irritation, among parents by age of child, August 2012
REASONS FOR SEEKING PROFESSIONAL TREATMENT
Key points
Inability to identify or treat issues results in a doctor visit
Figure 69: Reasons for seeking professional treatment, by gender, August 2012
Worrying about the unknown decreases with age
Figure 70: Reasons for seeking professional treatment, by age, August 2012
A lack of healing drives parents to the doctor’s office
Figure 71: Reasons for seeking professional treatment, by presence of children in household, August 2012
CONSUMER FRUSTRATIONS
Key points
Discomfort and visual appearance two biggest consumer frustrations
Figure 72: Frustrations with personal skin irritations, by gender, August 2012
Frustrations over discomfort and visual appearance decrease with age
Figure 73: Frustrations with personal skin irritations, by age, August 2012
Younger women report the greatest number of frustrations
Figure 74: Frustrations with personal skin irritations, by gender and age, August 2012
PURCHASE DRIVERS
Key points
Doctor recommendations and past experience key purchase drivers
Figure 75: Purchase factors in purchasing medicated skincare products, by gender, August 2012
Younger consumer segments look to doctors
Figure 76: Purchase factors in purchasing medicated skincare products, by age, August 2012
Parents with younger children more apt to do research prior to purchase
Figure 77: Purchase factors in purchasing medicated skincare products, among parents by age of child, August 2012
Lower-income consumers more likely to be impacted by price
Figure 78: Purchase factors in purchasing medicated skincare products, by household income, August 2012
INTEREST IN NEW PRODUCT ATTRIBUTES
Key points
Continuous medicinal delivery and multipurpose products of the greatest interest to consumers
Figure 79: Any interest in new product attributes in medicated skincare products, August 2012
Women more likely than men to be interested in added beauty benefits
Figure 80: Any interest in new product attributes in medicated skincare products, by gender, August 2012
Older consumers more likely to be interested in performance/functional attributes, younger consumers more open to new delivery systems
Figure 81: Any interest in new product attributes in medicated skincare products, by age, August 2012
Middle-income households most likely to report interest in a number of new product attributes
Figure 82: Any interest in new product attributes in medicated skincare products, by household income, August 2012
ATTITUDES TOWARD MEDICATED SKINCARE PRODUCTS
Key points
Past experience and doctor recommendations command strongest agreement among consumers
Figure 83: Attitudes toward medicated skincare, August 2012
Men more likely to prefer sticking with products they know and name brands
Figure 84: Attitudes toward medicated skincare, by gender, August 2012
Younger consumers display the greatest agreement in their attitudes toward medicated skincare
Figure 85: Attitudes toward medicated skincare, by age, August 2012
Parents with young children more apt to stick with what they know and display concern over chemicals in medicated skincare products
Figure 86: Attitudes toward medicated skincare, among parents by age of child, August 2012
RACE AND HISPANIC ORIGIN
Key points
Asians/Pacific Islanders most likely to report personal incidence of a number of irritations
Figure 87: Incidence of skin irritations, by race/Hispanic origin, August 2012
Reliance on doctor for identification is common; white consumers most likely to identify based on past experience
Figure 88: Identification method for skin irritation, by race/Hispanic origin, August 2012
White consumers most likely to purchase medicated skincare products as treatment method, other segments look to prescription offerings
Figure 89: Treatment method for skin irritation, by race/Hispanic origin, August 2012
Frustrations around visual appearance of skin irritations most salient for Asians/Pacific Islanders
Figure 90: Frustrations with personal skin irritations, by race/Hispanic origin, August 2012
Asians and Hispanics demonstrate greatest interest in new product formats and attributes beyond enhanced performance
Figure 91: Any interest in new product attributes in medicated skincare products, by race/Hispanic origin, August 2012
Asians/Pacific Islanders most likely to have strong agreement with attitudes that center on natural offerings and concern over ingredients
Figure 92: Attitudes toward medicated skincare, by race/Hispanic origin, August 2012
IRI/BUILDERS – KEY HOUSEHOLD PURCHASE MEASURES
 OVERVIEW OF FIRST AID TREATMENT CATEGORY
 ANTI-ITCH TREATMENTS
Consumer insights on key purchase measures
Brand map
Figure 93: Brand map, selected brands of anti-itch treatments buying rate, by household penetration, 52 weeks ending June 24, 2012
Brand leader characteristics
Key purchase measures
Figure 94: Key purchase measures for the top brands of anti-itch treatments, by household penetration, 52 weeks ending June 24, 2012
APPENDIX – OTHER USEFUL CONSUMER TABLES
Lip care product usage
Figure 95: Personal use of lip care products, by gender, April 2011-June 2012
Figure 96: Personal use of lip care products, by age, April 2011-June 2012
Figure 97: Personal use of lip care products, by race/Hispanic origin, April 2011-June 2012
Brands of lip care products used
Figure 98: Brands of lip care products used, by gender, April 2011-June 2012
Figure 99: Brands of lip care products used, by age, April 2011-June 2012
Figure 100: Brands of lip care products used, by race/Hispanic origin, April 2011-June 2012
Incidence of skin irritations
Figure 101: Incidence of skin irritations—personal experience, by gender, August 2012
Figure 102: Incidence of skin irritations—personal experience, by household income, August 2012
Figure 103: Incidence of skin irritations—someone else in household, by household income, August 2012
Figure 104: Incidence of skin irritations—personal experience, by age, August 2012
Figure 105: Incidence of skin irritations—someone else in household, by race/Hispanic origin, August 2012
Initial identification of issues
Figure 106: Identification method for skin irritation, by household income, August 2012
Treatment methods
Figure 107: Treatment method for skin irritation, by household income, August 2012
Reasons for seeking professional treatment
Figure 108: Reasons for seeking professional treatment, by race/Hispanic origin, August 2012
Purchase factors
Figure 109: Purchase factors in purchasing medicated skincare products, by gender and age, August 2012
Figure 110: Purchase factors in purchasing medicated skincare products, by race/Hispanic origin, August 2012
Figure 111: Purchase factors in purchasing medicated skincare products, by treatment method for skin irritation, August 2012
Figure 112: Purchase factors in purchasing medicated skincare products, by identification method for skin irritation—part one, August 2012
Figure 113: Purchase factors in purchasing medicated skincare products, by identification method for skin irritation—part two, August 2012
Interest in new product attributes
Figure 114: Interest in new product attributes in medicated skincare products, August 2012
Figure 115: Any interest in new product attributes in medicated skincare products, by gender and age, August 2012
Figure 116: Very interested in new product attributes in medicated skincare products, by gender, August 2012
Figure 117: Very interested in new product attributes in medicated skincare products, by age, August 2012
Figure 118: Very interested in new product attributes in medicated skincare products, by household income, August 2012
Figure 119: Very interested in new product attributes in medicated skincare products, by race/Hispanic origin, August 2012
Figure 120: Any interest in new product attributes in medicated skincare products, by frustrations with personal skin irritations—part one, August 2012
Figure 121: Any interest in new product attributes in medicated skincare products, by frustrations with personal skin irritations—part two August 2012
Attitudes toward medicated skincare products
Figure 122: Attitudes toward medicated skincare, August 2012
Figure 123: Attitudes toward medicated skincare, by gender and age, August 2012
Figure 124: Attitudes toward medicated skincare, by household income, August 2012
APPENDIX – SOCIAL MEDIA
Brand usage and awareness
Figure 125: Brand usage and awareness of ChapStick, November 2012
Figure 126: Brand usage and awareness of Abreva, November 2012
Figure 127: Brand usage and awareness of Burt’s Bees, November 2012
Figure 129: Brand usage and awareness of Mederma, November 2012
Brand satisfaction
Figure 131: Satisfaction with ChapStick brand, by demographics, November 2012
Figure 132: Satisfaction with Abreva brand, by demographics, November 2012
Figure 133: Satisfaction with Burt’s Bees brand, by demographics, November 2012
Figure 134: Satisfaction with Aveeno brand, by demographics, November 2012
Figure 135: Satisfaction with Mederma brand, by demographics, November 2012
Figure 136: Satisfaction with Lubriderm brand, by demographics, November 2012
Interaction with brands
Figure 137: Interaction with the ChapStick brand, by demographics, November 2012
Figure 138: Interaction with the Abreva brand, by demographics, November 2012
Figure 139: Interaction with the Burt’s Bees brand, by demographics, November 2012
Figure 140: Interaction with the Aveeno brand, by demographics, November 2012
Figure 141: Interaction with the Mederma brand, by demographics, November 2012
Figure 142: Interaction with the Lubriderm brand, by demographics, November 2012
Motivations for interaction
Figure 143: Reason for interaction with the ChapStick brand, by demographics, November 2012
Online conversations
Figure 144: Percentage of consumer conversation, by medicated skincare brands, Aug. 1-Nov. 1, 2012
Figure 145: Online mentions, by medicated skincare brands, by day, Aug. 1-Nov. 1, 2012
Figure 146: Online mentions, by selected medicated skincare brands, by page type, Aug. 1-Nov. 1, 2012
Figure 147: Online mentions, by selected medicated skincare brands, by type of conversation, Aug. 1-Nov. 1, 2012
Figure 148: Major areas of discussion surrounding medicated skincare brands, by day, Aug. 1-Nov. 1, 2012
Figure 149: Major areas of discussion surrounding medicated skincare brands, by type of website, Aug. 1-Nov. 1, 2012
APPENDIX – TRADE ASSOCIATIONS