Body Care - US - July 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 body care, at current prices, 2007-17
Market factors
Slow economic rebound hinders category growth
Category participation on the rise, women continue to drive sales
Figure 2: Hand and body lotion usage, by gender, March 2011 and April 2012
Market segmentation
Figure 3: Sales of body care products, segmented by type, 2010 and 2012
Retail channels
Figure 4: Sales of body care products, by channel, 2010 and 2012
Innovation
Figure 5: Body care product launches, by top 10 claims, 2007-11
The consumer
Hand lotions popular among 25+, body lotion favored by 25-54s
Figure 6: Hand and body lotion usage, by age, April 2012
Extra moisturizing claim strikes chord with majority of product users
Figure 7: Select body care product qualities sought, March 2011 and April 2012
What we think
ISSUES IN THE MARKET
How is the expanding interest in men’s body care impacting the market?
How can brands increase usage/purchase occasion among body care product consumers?
How will an aging population impact growth in body care product sales?
What might the anti-aging body care segment do to increase sales?
INSIGHTS AND OPPORTUNITIES
Position body care products as practical gifts
Increase focus on men’s products
Figure 8: Men’s body and hand lotion usage, March 2011 and April 2012
Expand consumer options through product specialization
Specific use
Specific function/specific usage occasion
A different product for a different time of year
A natural approach
INSPIRE INSIGHTS
Trend: Prove It
Trend: Girly Men
MARKET SIZE AND FORECAST
Key points
Category sales decline 10% from 2007-12
Sales and forecast of body care products
Figure 9: Total U.S. retail sales and forecast of body care products, at current prices, 2007-17
Figure 10: Total U.S. retail sales and forecast of body care, at inflation-adjusted prices, 2007-17
Fan chart forecast
Figure 11: Total U.S. retail sales and fan chart forecast of body care, at current prices, 2007-17
Walmart sales
MARKET DRIVERS
Key points
Slow economic rebound hinders category
Figure 12: University of Michigan’s index of consumer sentiment, 2006-(Q1)2012
Women will continue to drive sales
Figure 13: Female population, by age, 2006-16
Figure 14: Body care product qualities sought, by female and age, April 2012
COMPETITIVE CONTEXT
Consumers seek moisture in bath products
Figure 15: Soap purchasing attributes, by gender, January 2012
SEGMENT PERFORMANCE
Key points
Hand and body lotion dominate body care category
Sales of body care products, by segment
Figure 16: Sales of body care products, segmented by type, 2010 and 2012
SEGMENT PERFORMANCE—HAND AND BODY LOTION
Key points
Sales of hand and body lotion declined by 10% from 2007-12
Sales and forecast of hand and body lotion
Figure 17: Sales and forecast of hand and body lotion, at current prices, 2007-17
SEGMENT PERFORMANCE—BODY ANTI-AGING LOTION
Key points
Relatively small body anti-aging segment sees high volatility
Sales and forecast of body anti-aging lotion
Figure 18: Sales and forecast of body anti-aging lotion, at current prices, 2007-17
RETAIL CHANNELS
Key points
Other channels lead category sales, losses
Sales of body care products, by channel
Figure 19: Sales of body care products, by channel, 2010 and 2012
RETAIL CHANNELS—SUPERMARKETS
Key points
Supermarket sales decline by 4% from 2007-12
Supermarket sales of body care products
Figure 20: Supermarket sales of body care products, at current prices, 2007-12
RETAIL CHANNELS—DRUG STORES
Key points
Drug stores only channel to see gains from 2007-12
Drug store sales of body care products
Figure 21: Drug store sales of body care products, at current prices, 2007-12
RETAIL CHANNELS—OTHER RETAIL CHANNELS
Key points
Consumers search for cost savings strains “other” channels
Other retail channel sales of body care products
Figure 22: Other retail channel sales of body care products, at current prices, 2007-12
THE NATURAL SUPERMARKET CHANNEL
Key points
Natural channel sees growth from 2009-11
Sales of body care in the natural grocery channel
Figure 23: Natural supermarket sales of body care, at current prices, 2009-11
Figure 24: Natural supermarket sales of body care, at inflation-adjusted prices, 2009-11
LEADING COMPANIES
Key points
A few leaders comprise the bulk of sales, affordability is key
Manufacturer sales of body care products
Figure 25: Select manufacturer sales of body care products at FDMx, 2011 and 2012
BRAND SHARE—HAND AND BODY LOTION
Key points
Little movement among leaders seen, natural may be key to growth
Leading companies' FDMx sales of hand and body lotion
Figure 26: Manufacturer sales of hand and body lotion at FDMx, 2011 and 2012
BRAND SHARE—BODY ANTI-AGING PRODUCTS
Key points
P&G’s Olay represents 53.2% of body anti-aging sales
Leading companies' FDMx sales of body anti-aging products
Figure 27: Manufacturer sales of body anti-aging products at FDMx, 2011 and 2012
COMPANIES/BRANDS BY AVERAGE PRICE PER UNIT—HAND AND BODY LOTION
Overview
High-priced hand and body products available across retail channels
Figure 28: Select FDMx manufacturer sales of body and hand lotion, by high average price by brand, 2011 and 2012*
Medium-priced hand and body products show wide price range
Figure 29: Select FDMx manufacturer sales of body and hand lotion, by medium average price by brand, 2011 and 2012*
Low-price hand and body products have significant brand awareness
Figure 30: Select FDMx manufacturer sales of body and hand lotion, by low average price by brand, 2011 and 2012*
COMPANIES/BRANDS BY AVERAGE PRICE PER UNIT—BODY ANTI-AGING PRODUCTS
High price of body anti-aging segment may challenge performance
Figure 31: Select FDMx manufacturer sales of body anti-aging products, by high average price by brand, 2011 and 2012*
Medium price products comprise segment sales leaders
Figure 32: Select FDMx manufacturer sales of body anti-aging products, by medium average price by brand, 2011 and 2012*
Low average price products lack strong sales performance
Figure 33: Select FDMx manufacturer sales of body and hand lotion, by low average price by brand, 2011 and 2012*
INNOVATIONS AND INNOVATORS
 NEW PRODUCT LAUNCH TRENDS
New product releases slow in the wake of recession/recalls
Time/speed claims on the rise
Figure 34: Body care product launches, by top 10 claims, 2007-12*
Private label makes product launch gains
Figure 35: Body care product launches, by private label share, 2007-12*
 PRODUCT INNOVATIONS
New formats
Figure 36: Preferred hand lotion and/or body lotion format, April 2012
Extreme
Men
Functional
Natural
Professional recommendation/proven efficacy
Gifting
MARKETING STRATEGIES
Overview of brand landscape
Brand analysis: Eucerin
Figure 37: Brand analysis of Eucerin, 2012
Online initiatives
TV presence
Figure 38: Eucerin TV ad, “Itch Relief,” 2012
Figure 39: Eucerin TV ad, “Daily Care,” 2012
Brand analysis: Nivea
Figure 40: Brand analysis of Nivea, 2012
Online initiatives
TV presence
Figure 41: Nivea TV ad, “48-Hour Relief,” 2012
Figure 42: Nivea TV ad, “Long-Lasting Moisture,” 2011
Brand analysis: Aveeno
Figure 43: Brand analysis of Aveeno, 2012
Online initiatives
TV presence
Figure 44: Aveeno TV ad, “For Life,” 2012
Figure 45: Aveeno TV ad, “Natural Barrier,” 2012
PRODUCT USAGE
Key points
Use of body care products on the rise
Figure 46: Body and hand lotion usage, March 2011 and April 2012
Figure 47: Frequency of lotion usage, April 2012
Women are highest-frequency users
Figure 48: Frequency of lotion usage, by gender, April 2012
Hand lotions popular among 25+, body lotion favored by 25-54s
Figure 49: Frequency of lotion usage, by age, April 2012
Lowest-income earners least likely to participate in category
Figure 50: Frequency of lotion usage, by household income, April 2012
Usage higher among consumers with children
Figure 51: Frequency of lotion usage, by presence of children in household, April 2012
WHERE USE
Key points
Consumers exhibit flexibility in product usage
Figure 52: Where hand lotion and/or body lotion is used, April 2012
Women more likely to use products for intended use
Figure 53: Where hand and body lotion is used, by gender, April 2012
Lowest-income earners attracted by multitaskers
Figure 54: Where body lotion is used, by household income, April 2012
PRODUCT QUALITIES
Key points
Extra moisturizing claim strikes chord with majority of product users
Figure 55: Body care product qualities sought, March 2011 and April 2012
An emphasis on functional benefits of products may attract men
Figure 56: Body care product qualities sought, by gender, April 2012
Interest in qualities span age groups
Figure 57: Body care product qualities sought, by age, April 2012
BODY CARE SELECTION
Key points
Men stick with favorites, women like to try new brands
Figure 58: Body care brand and product selection, by gender, April 2012
Young consumers open to new products, swayed by price
Figure 59: Body care brand and product selection, by age, April 2012
Openness to new brands spans income levels, low price attracts lower income earners
Figure 60: Body care brand and product selection, by household income, April 2012
PURCHASE LOCATION
Key points
Common purchase locations give insight into perception of category
Figure 61: Body care products purchase location, by gender, April 2012
High-income earners exhibit greater range of purchase locations
Figure 62: Body care products purchase location, by household income, April 2012
USAGE HABITS
Key points
Product specificity likely to find favor among consumers
Figure 63: Body care products usage habits – Any agree, by gender, April 2012
25-34s appear as highly engaged users
Figure 64: Body care products usage habits – Any agree, by age, April 2012
WHEN USE
Key points
Women vary usage occasion, post-workout blends may attract men
Figure 65: When body care products are used, by gender, April 2012
Consumers 55+ exhibit greatest range of product use
Figure 66: When body care products are used, by age, April 2012
IMPACT OF RACE AND HISPANIC ORIGIN
Key points
Black and Asian consumers most likely/frequent users
Figure 67: Moisturizer/cream/lotion usage, by race/Hispanic origin, October 2010-November 2011
Figure 68: Frequency of lotion usage, by race/Hispanic origin, April 2012
Opportunity for area-specific products among blacks and Asians
Figure 69: Where body lotion is used, by race/Hispanic origin, April 2012
Hispanic consumers may be attracted by added claims
Figure 70: Body care product qualities seek, by race/Hispanic origin, April 2012
Black consumers stay loyal to brands, Asians like to try new products
Figure 71: Body lotion brand and product selection, by race/Hispanic origin, April 2012
Gifting appears as opportunity for Hispanic consumer engagement
Figure 72: Body care products usage habits – Any agree, by race/Hispanic origin, April 2012
CLUSTER ANALYSIS
Cluster 1: Dried Ups
Demographics
Characteristics
Opportunity
Cluster 2: Smooth Operators
Demographics
Characteristics
Opportunity
Cluster 3: Firm Users
Demographics
Characteristics
Opportunity
Cluster 4: Simple Spreaders
Demographics
Characteristics
Opportunity
Cluster characteristic tables
Figure 73: Target groups, April 2012
Figure 74: Frequency of lotion usage, by target groups, April 2012
Figure 75: Where hand and body lotion is used, by target groups, April 2012
Figure 76: Body care product qualities sought, by target groups, April 2012
Figure 77: Hand and body lotion brand and product selection, by target groups, April 2012
Figure 78: Body care products purchase location, by target groups, April 2012
Figure 79: Body care products usage habits – Any agree, by target groups, April 2012
Figure 80: When body care products are used, by target groups, April 2012
Figure 81: Preferred hand and body lotion product format, by target groups, April 2012
Cluster demographic tables
Figure 82: Target groups, by demographic, April 2012
Cluster methodology
KEY HOUSEHOLD PURCHASE MEASURES—SYMPHONYIRI BUILDERS PANEL
 BODY CARE PRODUCTS
Consumer insights on key purchase measures
Brand map
Figure 83: Brand map, selected brands of body care products buying rate, by household penetration, 52 weeks ending June 26, 2011
Brand leader characteristics
Key purchase measures
Figure 84: Key purchase measures for the top brands of body care products, by household penetration, 52 weeks ending June 26, 2011
APPENDIX: OTHER USEFUL CONSUMER TABLES
Figure 85: Where hand and body lotion is used, by gender and age, April 2012
Figure 86: Body care product qualities seek, by male and age, April 2012
Figure 87: Body care product qualities sought, by household income, April 2012
Figure 88: Body care product qualities sought, by region, April 2012
Figure 89: Body care products purchase location, by age, April 2012
Figure 90: Body care products usage habits – Any agree, by household income, April 2012
Figure 91: When body care products are used, by household income, April 2012
Figure 92: Preferred hand and body lotion product format, by age, April 2012
APPENDIX—SYMPHONYIRI BUILDERS PANEL DATA DEFINITIONS
SymphonyIRI Consumer Network Metrics
APPENDIX: TRADE ASSOCIATIONS