Consumer Shopping Habits for Wellness - Presentation Shop… · Consumer Shopping Habits for...
Transcript of Consumer Shopping Habits for Wellness - Presentation Shop… · Consumer Shopping Habits for...
Consumer Shopping Habits for Wellness and Environmentally Conscious Lifestyles Study
Insights for Health, Beauty and Wellness
September 12, 2009
Consumer Shopping Habits Study| Presented by The Hartman Group and GMDC
Agenda for Today’s Presentation
• Study Dimensions/Methodologies• Consumers: Relationship with Health and Wellness• Shopping: Best Practices• Gateway Category Highlights: Personal Care Products
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Consumer Shopping Habits Study| Presented by The Hartman Group and GMDC
Study Dimensions/Methodologies• In broad strokes, this study was intended to
– Summarize consumer shopping habits/patterns in GM and HBW
• Types of products/services purchased• Retail locations visited
– Identify typical product and category cycles• The order in which categories are usually adopted• How categories may serve as gateways for
additional Health and Wellness interest and involvement
– Highlight top wellness opportunities to include consumer wants and needs, product categories, services, and retail practices
• Dual approach leveraging complimentary methods– Qualitative research in 3 locations: Charlotte, Seattle
and Edison, NJ (in-home and in-store interviews, group interviews)
– Quantitative research (online survey), sample of 2,176
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PART ONE – CONSUMERS:Relationship to Health and Wellness
Consumer Shopping Habits Study| Presented by The Hartman Group and GMDC
The World of Health and Wellness – Sizing the World
• Health and Wellness consumers are segmented into three distinct groups– Periphery (25%) – 77 million U.S.
consumers– Mid-level (62%) – 190 million U.S.
consumers– Core (13%) – 40 million U.S.
consumers
• These groups represent varying levels of intensity and involvement in Health and Wellness lifestyles
Base: Primary household shoppers (n=2176)Source: GMDC 2009 Survey, Mar. 2009.
Mid-Level62%
Core13%Periphery
25%
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Consumer Shopping Habits Study| Presented by The Hartman Group and GMDC
The World of Health and Wellness - Segments
Periphery Mid-level Core “Entry level” Health and Wellness consumers Aspire to be more involved in Health and Wellness, but behaviors do not yet follow their aspirations Are mostly “reactive” rather than “proactive” when it comes to matters of Health and WellnessHighly driven by Price and Convenience
Moderately involved in a Health and Wellness lifestyleTend to follow some of the trends set by the CorePurchase large amounts of both conventional and Health and Wellness-specific productsStill somewhat concerned with Price and Convenience, but also driven by Knowledgeand Experience
Most lifestyle-involved in Health and WellnessServe as trendsetters/gurus for other consumers Health and Wellness is a major life focus for themDriven by Sustainability, Authenticity, and Local
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Consumer Shopping Habits Study| Presented by The Hartman Group and GMDC
PERIPHERYPERIPHERY MIDMID--LEVELLEVEL CORECORE
Consumers Evolve Toward a Holistic Notion of Wellness
SEPARATION HOLISMSELF-FOCUSED BROADER FOCUS
Avoiding “toxic” personal care products in the home for health reasons
Avoiding personal care products if they believe they are harmful to the
environmentAvoiding personal care products only
if they cause sensitivities/allergies
Exercise for health benefits Exercise for health and mental/spiritual balance
Exercise for weight management
Focus on avoiding some “bad” foods but also seeking whole, real foods
Focus on “local” foods and social/environmental issues relating to food production (farming, labor, etc.)
Focus on avoiding “bad”foods/ingredients
Somewhat preventative approach to health conditions
Highly preventative approach, often quite broad e.g. meditation, yoga and diet to
reduce stress
Focus on more acute medical conditions – reactive approach to
health
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Consumer Shopping Habits Study| Presented by The Hartman Group and GMDC
…and Toward a More Positive Take On Health and Wellness• As consumers evolve in the World of
Wellness, they shift…• From a negative, more physically-
oriented set of values and practices relating to Health (by itself), to
• A more positive, holistic focus on Health and Wellness
• They go, in other words, from reactive to proactive
• From viewing Health as “things you have to do” that are obligatory and not particularly interesting…
• To viewing Health and Wellness in a very positive light, and being actively engaged with and interested in related ideas, knowledge, and activities
sicknessillness
crisis
quick fix
reactive
treatment
mechanical
necessary
have to
boring
proactive
taking care
nutrition
prevention
indulgence
for the long term
fun
CORECOREPERIPHERYPERIPHERY
NEGATIVENEGATIVE POSITIVEPOSITIVE
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Consumer Shopping Habits Study| Presented by The Hartman Group and GMDC
Demographics - Some Regional Variation Appears Across Segments• Some regions have a higher density (or “critical mass”) of more involved Health
and Wellness consumers than others
• The Core consumer is more likely to be living in the Pacific states (California, Oregon, Washington and Alaska) and the Periphery consumer is more likely to be living in the New England region
• In all regions there are quite substantial proportions of Mid-level consumers
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Consumer Shopping Habits Study| Presented by The Hartman Group and GMDC
Other Demographics Do Not Show Strong Differences• Other than region, there are few notable
differences other than at extreme edges of the income and education scales
• Differences are not nearly as striking as the overall similarity across groups -comparing the mean (total, at top) to the rest of the “cuts” in the data, there are no big differences
• The only demographic difference that “jumps out” here is the difference in ethnicity
– Qualitatively, we have not seen significant differences between these groups, and suspect that there may be minor cultural differences that impact the way certain groups answer the screening questions
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Consumer Shopping Habits Study| Presented by The Hartman Group and GMDC
Health and Wellness is Defined in Many Ways – it is not just avoiding or managing physical health conditions
• Periphery consumers do over-index a bit on simply “not being ill,”indicating a focus on the physical when it comes to Health and Wellness
• All consumers segments make strong mention of lifestyle factors outside of physical health concerns, especially Core consumers
Q06: “To me, health and wellness means...” | Base: Primary household shoppers (n=2176; 166 Core, 1408 Mid-level, 602 Periphery). | Source: GMDC 2009 Survey, Mar. 2009.
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Consumer Shopping Habits Study| Presented by The Hartman Group and GMDC
HBW Can Market to Many Consumer Lifestyle Concerns
53%49%
46%45%
21%16%
15%
Concern about getting olderMy health condition changed
Having too little energyHaving too much stress
The health condition of a family member worsenedSomeone I know died of poor health
Something I read
Q9: “What caused you to change your views on health and wellness?” | Base: Shoppers that have changed their views on what Health and Wellness means to them (n=932). | Source: GMDC 2009 Survey, Mar. 2009.
• Consumers express a variety of health triggers and issues that are lifestyle related rather than health condition focused
– Among the top 7 health “issues” cited by consumers are stress, anxiety and sleep disorders
– Among the top 4 health triggers are concern about getting older, having too little energy and having too much stress
• This provides an opportunity for HBW to market products that help relieve or solve these concerns – e.g., skin care to maintain youthfulness, supplements to relieve stress, body lotions that reinvigorate, etc.
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Consumer Shopping Habits Study| Presented by The Hartman Group and GMDC
The Internet Has Become the Key Consumer Information Source
•New media sources are critically important sources of Health and Wellness information
•Social networks (family member, friend or colleague) and long-time doctors are the most trusted sources of Health and Wellness information
•Doctors in the media are frequent sources of information – this may account for the high % reporting “doctor”
Q13: “In the PAST 3 MONTHS, which of the following information sources have you used to learn more about health and wellness?” | Base: Primary household shoppers (n=2176). | Source: GMDC 2009 Survey, Mar. 2009.
60%
53%
44%
38%
29%
21%
20%
16%
15%
14%
13%
11%
Internet
Doctor
Online health sites
Books/Magazines
Family member
Friend or colleague
TV/Radio shows
Pharmacist
Newspapers
Email newsletters
Product label
A product company's web site
Media
Medical Professionals Personal Acquaintances Manufacturer
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Consumer Shopping Habits Study| Presented by The Hartman Group and GMDC
The Affects of the Recession May Provide Some Opportunities for HBW in Certain Product Categories
• Although the recession has affected some specific Health and Wellness categories more than others, consumers are NOT leaving the broad category itself. Most consumers have not changed their daily activities and purchases in particularly profound ways, but there are some clear patterns including:– Putting off larger purchases and some scaling back of discretionary
purchases– Cutting coupons or looking for deals– Dining out less often and/or at less expensive restaurants– Finding ways to stay entertained at home or at the homes of others
• Some of these patterns provide possible increased sales opportunities for HBW including:– Body care (e.g., spa at home)– Hair care (e.g., salon at home)
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Consumer Shopping Habits Study| Presented by The Hartman Group and GMDC
A Notable Percentage of Categories are Not Shopped Differently Under the Recession
• In aggregate, this data shows a good level of resilience on the part of the US consumer
Bar soapDeodorant or antiperspirant
Lip balm/glossShaving lotions/gels/foam
Oral careHair care
Pet suppliesPlants and garden care
Specialty supplementsLaundry detergents
Children's personal care productsFeminine hygiene/contraceptives
Moisturizers (e.g., body, hands, feet)Body wash or bath gel
Kitchen cleanersBaby diapers, wipes, or personal care products
Over the counter medicationsFunctional or enhanced beverages
Window or general purpose cleanersVitamins or minerals
Bathroom cleanersHome fragrance
53%
53%
50%
49%
49%
48%
47%
47%
45%
43%
42%
41%
41%
40%
40%
40%
40%
39%
39%
39%
38%
38%
Q31: “How has your approach to shopping for the product changed, if at all, compared to last year? I haven't made any changes in the way I shop for [Product category]” | Base: Product shoppers (n varies from 160 for Energy drinks to 545 for Oral care). | Source: GMDC 2009 Survey, Mar. 2009.
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Consumer Shopping Habits Study| Presented by The Hartman Group and GMDC
Quantitative Indicators of Recession Show Money-Saving Behaviors • For most HBW categories, consumers are using coupons or waiting for sales
CosmeticsDeodorant or antiper-
spirant
Lip balm/ gloss Oral care Facial
careHaircare
Body wash/
bath gelOTC
I buy it less often 26% 5% 16% 4% 15% 9% 13% 16%I shop around more to find the best deal 20% 10% 13% 16% 19% 18% 21% 23%
I'm more likely to collect and use coupons
18% 18% 13% 27% 28% 24% 21% 21%
I'm more likely to wait for sales or deals and stock up
18% 23% 15% 19% 23% 19% 25% 17%
I am more focused on buying higher quality than before
12% 5% 9% 8% 10% 9% 8% 6%
I have switched to less expensive brands 10% 9% 7% 9% 16% 16% 15% 17%
I buy the store brand more often 8% 5% 11% 7% 12% 9% 9% 24%
I buy smaller amounts when I do buy it 7% 4% 8% 4% 11% 5% 6% 10%
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Consumer Shopping Habits Study| Presented by The Hartman Group and GMDC
Among Those Consumers Who Are Shopping Differently, Private Label is Gaining Ground
• Across many categories, consumers are “stocking up” on deals, using coupons, and shopping around more extensively for better pricing.
• Everyday necessities have been impacted least, nevertheless many consumers are still shopping harder for bargains in these categories.
• Private label purchases have increased, most strikingly in over-the-counter medications (24% of consumers are shopping for private label more often than last year).
• Increases in purchases of private label products in HBW categories range from 5% (bar soap and deodorant) to 17% (vitamins).
Consumer Collages
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Consumer Shopping Habits Study| Presented by The Hartman Group and GMDCConsumer Shopping Habits Study| Presented by The Hartman Group and GMDC
Consumer Section Summary• Health and Wellness is not a niche market dominated by a small group of
consumers….it is a long-term change in how consumers view their lives and the products they purchase
• However, consumers do engage with Health and Wellness at different intensity levels and it is important to understand what level your customer is at (Core, Mid-level or Periphery)
• Demographics offer only limited insights into a consumer’s level of engagement with wellness
• Consumers don’t consider Wellness to be simply about physical conditions – social, emotional, mental and even spiritual considerations are often included
• New media channels are key sources of knowledge gathering for consumers
• The consumer reaction to the recession could offer opportunities for certain HBW products
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PART TWO –SHOPPING: Best Practices
Consumer Shopping Habits Study| Presented by The Hartman Group and GMDC
Consumers Take a Multi-Channel Approach to Shopping for Health and Wellness Products
• Consumers tend to shop across many channels for Health and Wellness products, having specific channel preferences for different categories– Grocery is a preferred option for several home cleaning and personal
care categories (of course, it is also strongly preferred for most food purchases)
– Mass has emerged as a preferred choice for several categories including home cleaning, personal care, vitamins and supplements, OTC and general merchandise
– Drug is a preferred channel for OTC and some personal care categories (e.g., cosmetics)
– Club is a preferred channel for some consumers for products such as laundry detergent and diapers, where consumers want to “go big” to save money
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Consumer Shopping Habits Study| Presented by The Hartman Group and GMDC
Although Consumers Spread Their Purchases Across Channels, Mass is the Most Frequented for almost all HBW Categories
Mass Grocery Dollar Store Club Drug Natural/
Specialty
Bar soap 55% 40% 13% 16% 18% 2%
Moisturizers 63% 21% 14% 4% 35% 2%
Deodorant or antiperspirant 56% 44% 14% 14% 24% 3%
Hair care 57% 30% 14% 11% 30% 2%
Oral care 58% 43% 12% 10% 29% 2%
Vitamins or minerals 43% 26% 5% 11% 34% 11%
Over the counter medications 54% 32% 8% 7% 54% 1%
Source: Aggregation of Q30. | What kinds of stores do you go to MOST OFTEN when shopping for [Product category]? Please check up to TWO choices | Base: Primary household shoppers (n=2176; 166 Core, 1408 Mid-level, 602 Periphery). | Source: GMDC 2009 Survey, Mar. 2009.
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Consumer Shopping Habits Study| Presented by The Hartman Group and GMDC
Channel Usage by Consumer Segment
PERIPHERY MID-LEVEL CORE
Mainstream Grocery
Specialty Grocery
Mainstream Drug
Specialty DrugClubMass
• The retail channels have differing appeal to the consumer segments• The top of each triangle indicates which consumer segment should be
primarily targeted by each channel. The length of the bottom of the triangle shows how far each channel can reach into other segments.
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Consumer Shopping Habits Study| Presented by The Hartman Group and GMDC
Health and Wellness Product Mapping for the Mainstream Grocery Channel
• The priority categories for mainstream grocery stores are in red• Dotted lines indicate that, strategically, mainstream grocery retailers
should emphasize Health and Wellness appeal that is primarily Mid-level but also engages some Periphery consumers
PERIPHERYPERIPHERY MIDMID--LEVELLEVEL CORECORE
Mainstream Grocery
food/beverage vitamins
specialty supplements
natural home cleaners
natural hair care
herbal supplements + remedies
natural fem hygiene
natural make-upnatural skincare
natural lawn/ garden
natural pet care
natural children’s hygiene/toiletries
OTCsporting equipment
alternative toys and games
natural eye care
health + wellness books, magazines, + education
home lighting
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Consumer Shopping Habits Study| Presented by The Hartman Group and GMDC
Lack of In-Store Visibility is a Key Barrier
• Most retail spaces contain far more in the way of health and wellness products than consumers realize
• Products need to be in places that consumers will find them, not segregated off in remote corners of the store/section
• Segregation separates “apples from apples” and inhibits direct product comparisons in categories which tends to frustrate Periphery and Mid-level consumers
A shelf with a full suite of Seventh Generation products, that often goes unnoticed since it is segregated from other cleaning products
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Consumer Shopping Habits Study| Presented by The Hartman Group and GMDC
Quantitative Data Shows “Too Many Choices” is an Issue For Many Categories
• In many categories, we find that consumers are simply overwhelmed with the level of choice they are presented with
• The tight numerical intervals between categories show that this issue has quite a significant effect across a wide range of categories
Q33: “Other than price, what is the worst aspect of shopping for Product? Please check your top TWO choices” | Base: Product shoppers (n varies from 265 for Cosmetics to 544 for Kitchen cleaners).Source: GMDC 2009 Survey, Mar. 2009.
52%50%
49%48%47%47%46%45%45%44%43%42%
41%40%40%40%40%
38%38%37%36%
30%
Home fragranceKitchen cleaners
Over the counter medicationsMoisturizers
Deodorant or antiperspirantBathroom cleaners
CosmeticsBody wash or bath gel
Hair careVitamins or minerals
Oral careFace care
Children's personal care productsShaving lotions/gels/foam
Functional or enhanced beveragesHerbal supplements
Laundry detergentsBar soap
Feminine hygiene/contraceptivesSpecialty supplements
Window or general purpose cleanersPet supplies
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Consumer Shopping Habits Study| Presented by The Hartman Group and GMDC
Sharing Key Product/Category Information Directly at Shelf is Helpful to Consumers
• An example from Pharmaca provides important product information at shelf
• Purchase decision criteria (per category) should be used to prioritize information in developing similar in-store merchandising features
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Consumer Shopping Habits Study| Presented by The Hartman Group and GMDC
Retail Atmosphere Matters• The overall retail atmosphere makes a huge difference in consumer
openness to trying new Health and Wellness products - quality perceptions and Health and Wellness perceptions are inexorably linked
• Consumers hesitate less to try new products in a more elegant retail space, assuming “the quality is there,” that the retailer has been diligent in seeking out and presenting appropriate products
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Consumer Shopping Habits Study| Presented by The Hartman Group and GMDC
Shopping Section Summary• Consumers are relying on a multitude of channels for their Health and
Wellness shopping• However, different consumer segments have preferred channels for
purchases• Consumers prefer to make direct comparisons between conventional
and “natural” products in the store. Therefore, retailers should strongly consider integrated product sets whenever possible
• Consumers are looking to retailers to help “edit” the number of product choices in many categories
• Complex Health and Wellness categories could benefit from simplified shelf management and product-specific signage
• The overall store layout and design can help or harm consumer Health and Wellness perceptions of the retailer
Consumer Shopping Habits Study| Presented by The Hartman Group and GMDC
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PART THREE – Gateway CategoryHighlights: Personal Care Products
Consumer Shopping Habits Study| Presented by The Hartman Group and GMDC
There is a Clear Pattern to Health and Wellness Category Adoption
• Consumers tend to adopt categories in a certain order as they evolve as Health and Wellness consumers from Periphery toward the Core
• Diagram below shows this pattern, which is helpful as a guide for targeting products and retail offerings that are most relevant to consumers at certain stages of Health and Wellness
PERIPHERYPERIPHERY MIDMID--LEVELLEVEL CORECORE
food/beverage vitamins
specialty supplements
natural home cleaners
natural hair care
herbal supplements + remedies
natural fem hygiene
natural make-upnatural skincare
natural lawn/ garden
natural pet care
natural children’s hygiene/toiletries
OTC
sporting equipmentalternative toys and games
natural eye care
health + wellness books, magazines, + education
home lighting (CFL bulbs)
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Consumer Shopping Habits Study| Presented by The Hartman Group and GMDC
Gateway Categories Non-Gateway Categories with Clear Ties to Health and Wellness
Non-Gateway Categories Lacking Clear Ties to Health and Wellness
SupplementsChildren’s Hygiene & ToiletriesHair and Skin CareHome CleaningBooks, Magazines, and EducationFunctional Beverages
OTCOral CareEye CareFeminine HygieneMakeup & CosmeticsPlant and Garden Care
Pet SuppliesHome LightingOffice SuppliesSporting EquipmentToys and Games
Personal Care Products are an Important Gateway into Health and Wellness
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Consumer Shopping Habits Study| Presented by The Hartman Group and GMDC
Consumers Orientations Evolve from H+W to Sustainability -- In, On, Around the BodySustainability consciousness begins closest to home where personal benefits are most at stake and sense of control is greatest
PERIPHERYFear of or experience with
superficial reactions spurs much interest in
more natural personal care products
MID-LEVELConcern about
immediate toxicity forms the basis for additional interest
typically at the Mid-level and beyond
COREConcern about
environmental effects is a more distant motivator,
usually appearing in more advanced Mid-level
and Core consumers
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Consumer Shopping Habits Study| Presented by The Hartman Group and GMDC
Consumers Seek More Natural/Organic Options in Household Cleaning & Personal Care Products
Q41: “For which of the following product categories would you like to see more choices using natural or organic ingredients or materials?” | Base: Primary household shoppers (n=2176; 166 Core, 1408 Mid-level, 602 Periphery). | Source: GMDC 2009 Survey, Mar. 2009.
• The level of desire for natural and organic products is related to increasing levels of toxicity and environmental concerns among most consumers
• Personal care categories rank just behind household products because of concerns of skin irritations
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Consumer Shopping Habits Study| Presented by The Hartman Group and GMDC
Most Consumers Believe Organic and Natural Personal Care Products are Safer and Healthier• However, they are less convinced of their efficacy, find them to
be too expensive and absent from the shelves where they typically shop
Q40: “In general, based on what you know, how do you think NATURAL OR ORGANIC personal care products compare to mainstream traditional brands?” | Base: Primary household shoppers (n=2176; 166 Core, 1408 Mid-level, 602 Periphery). | Source: GMDC 2009 Survey, Mar. 2009.
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Consumer Shopping Habits Study| Presented by The Hartman Group and GMDC
Category Purchase Decision Criteria vary Across Consumer Orientations -- Gateway vs. Non-gateway
PERIPHERYPERIPHERYcriteria
MIDMID--LEVELLEVELcriteria
CORECOREcriteria
Skin Care Effectiveness/function
Scent
Price
Brand
Effectiveness
Scent
Price
Lack of negative ingredients
Some concern about animal testing and concern about environment impact
Lack of negative ingredients (“chemicals,”often fragrance)
Lack of animal testing
Environmental impact
Oral Care Effectiveness/function (fit/type/preference)
Price
Taste
Brand
Effectiveness
Price
Taste
Minimal, high quality ingredients
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Consumer Shopping Habits Study| Presented by The Hartman Group and GMDC
Transitional Products are Critical for Helping the Consumer Evolve in the World of H + W• Many categories of personal care have examples of transitional
products which make it easier for Periphery consumers to experiment in new areas of product experience
• Skin care• Cosmetics• Hair care
RED FLOWER
AVEENO
DOVE
ST. IVES
BURT’S BEES
WELEDA
DR. HAUSCHKA
NEUTROGENA
CORECOREPERIPHERYPERIPHERY MIDMID--LEVELLEVEL
Transitional Brand
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Consumer Shopping Habits Study| Presented by The Hartman Group and GMDC
Some Categories are Missing Transitional Products Offering Opportunities
• Some key categories lack a critical mass of transitional products, such as– Toothpaste - It's Crest or it's Tom's with little in between– Underarm deodorant – one is generally faced with
regular/conventional products or alternatives that seem “too natural”e.g. crystal type products
• There is no Burt’s Bees equivalent in these categories!
Periphery
Core
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Consumer Shopping Habits Study| Presented by The Hartman Group and GMDC
There are Some Barriers that Must be Overcome to Grow the Personal Care Category• Consumers are challenged by so many choices• Products need to be in places that consumers will find them, not
segregated off in remote corners of the store/section
Q33: “Other than price, what is the worst aspect of shopping for Hair and Skin Care? Please check your top TWO choices” | Base: Product shoppers (n varies from 370 for Lip balm/gloss to 515 for Deodorant or antiperspirant). | Source: GMDC 2009 Survey, Mar. 2009.
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Consumer Shopping Habits Study| Presented by The Hartman Group and GMDC
Price is also a Barrier for Category Entry, but not as Much as one Might Expect
• Price always indexes high as a barrier to entry in quantitative studies
• However, our qualitative study showed that many Periphery consumers are willing to spend 10% more for H+W-oriented products over conventional versions
• Mid-level and Core consumers are often more concerned with specific product attributes than they are with price– Mid-level consumers typically won’t fret at
all about paying “a dollar more” for a personal care product
– Core consumers are typically willing to pay extra for their H+W items because they are so committed to the lifestyle
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Consumer Shopping Habits Study| Presented by The Hartman Group and GMDC
Packaging Is Important in Conveying Basic Quality Messages and Product Information
• There is a lack of contemporary aesthetics in many products– Some look outdated – e.g., "old hippie
co-op"– Some look childish– Some look overly “medicalized”
• In some cases, consumers may have a hard time answering the basic question “what is this stuff?”
• Products of this nature often quickly vanish from the consideration set at shelf
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Consumer Shopping Habits Study| Presented by The Hartman Group and GMDC
Packaging should Symbolically Cue a Connection to the Earth
• The following are basic tenets of packaging that help to cue sustainability:
– Packaging should not visually compete with the product
– A restrained color scheme that uses two or three colors
– Matte finishes appear clean and elegant and seem more recyclable than shiny coatings on package materials
• Twist Loofah Sponge– Use/purpose of product is obvious – Elegant, contemporary aesthetics – Minimal, paper packaging taps environmental
themes, as does biodegradable messaging – Overall “naturalness” of the product is obvious
and appeals strongly to advanced Mid-Level and Core consumers.
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Consumer Shopping Habits Study| Presented by The Hartman Group and GMDC
The OTC Category Provides an Interesting Contrast to Personal Care
• OTC is not a gateway category, but is important in that Periphery consumers associate it with H + W– OTC products are generally associated with conditions of illness and/or
crisis and lack the positive, proactive H+W associations that we find with certain other categories
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Consumer Shopping Habits Study| Presented by The Hartman Group and GMDC
Consumers Generally Choose Products in OTC Based on Effectiveness Perception And Price
• The importance of effectiveness ranges from 77% for the Mid-level to 89% for the Periphery consumer
• Core consumers are more likely than other H+W segments to consider purity or healthiness (41%)
• The Periphery is more likely to consider convenience factors such as ease of use (30%) and availability (31%) as more important
PERIPHERY MID-LEVEL CORE
PRICE
EFFECTIVENESS PERCEPTION
MINIMAL INGREDIENTS
BRAND
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Q32: “When you buy over the counter medications, what are the most important factors OTHER than price/value? Please check your top TWO choices” | Base: Over the counter medications shoppers (n=498; 32 Core, 327 Mid-level, 139 Periphery). |Source: GMDC 2009 Survey, Mar. 2009.
Consumer Shopping Habits Study| Presented by The Hartman Group and GMDC
Product Offerings in this Category Essentially “Fall Off” in the Mid-level
• This is because consumer interest in OTC also tends to fall off in the Mid-level– Lack of intermediate forms between traditional OTC and
homeopathic /herbal remedies, and a general lack of retail availability and consumer awareness of the latter.
– In a positive sense, there may be serious opportunities in developing such intermediate forms and making them accessible and recognizable to evolving Mid-level consumers.
PERIPHERY MID-LEVEL CORE
PRIVATE LABELS
ADVIL
SUDAFED
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Consumer Shopping Habits Study| Presented by The Hartman Group and GMDC
Product Section Summary• The personal care product category provides an ideal example of how
Health and Wellness attributes can expand and rejuvenate a category• The introduction of transitional Health and Wellness products (targeted to
Mid-level consumers) has helped propel the personal category into the spotlight
• Early identification by manufacturers of the consumer “hook” for this category (toxicity) has also helped with category growth
• Once the hook and its corresponding consumer benefit (e.g. effective product without the “bad” chemicals) are appropriately messaged to consumers, price becomes much less of a barrier to purchase
• Retailer merchandising tactics for transitional personal care products primarily utilized integrated shelf placement which made the products noticeable to mainstream consumers
• Product packaging is a marker of quality and the first Health and Wellness cue that consumers notice
Consumer Shopping Habits Study| Presented by The Hartman Group and GMDC
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Consumer Shopping Habits Study| Presented by The Hartman Group and GMDC
The Future of Health and Wellness for HBW• The health and wellness trend is not a fad and it is not going away, even in a
tough economy• The personal care products and OTC categories provide an example of how
HBW can leverage the growing consumer interest in health and wellness • Introducing transitional products is absolutely necessary to gain mainstream
consumer acceptance of any category• The time is now to determine how your products can elevate their health and
wellness cues in order to resonate with consumers• Several categories are showing the future potential to win with health and
wellness offerings:– Skin care – Hair care– Oral care– OTC
• Health and wellness opens up opportunities for HBW in terms of sales growth and consumer loyalty!
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THANK YOU!