Herbal Essences repositioning
BRAND EQUITY MANAGEMENT
Mai-Lan NGUYEN HUU MSc Marketing Edhec Business School
AGENDA
Hair Care Market Analysis Trendwatching
Competitors
analysis Herbal Essence current image A new brand image for Herbal Essences Fun & Commited Competitors
analysis Long term Strategy positioning Determined & Organic
French Market
HAIR CARE MARKET ANALYSIS
HAIR CARE MARKET (IN HYPER AND SUPERMARKETS) conditioners Targeted market
Growing rate
shampoo Styling products 2 in 1 products
Perms relaxants
Salon haircares Hair colors Market share (sales)
Shampoo and conditionners & are best sellers Professionnal haircare, hair colors styling products should be improved Problems with perms, relaxants and 2in1 products
2007 Euromonitor international
SHAMPOO & CONDITIONERS MARKET – SEGMENTATION (IN HYPER AND SUPERMARKETS)
Growing rate
Cometics •The natural segment has an important marketshare but should be more dynamic. •The cosmetics is the growing segment with the introduction of Nivea Haircare on French market and the new trend of glossy cares.
Inspired by Professional Private labels
Treatment & cares Family Natural
Children Market share (sales)
Source : AC Nielsen March 2007/2008
SHAMPOOS MARKET – BRANDS (IN HYPER AND SUPERMARKETS)
Growing rate
Targeted competitors
Market share (sales)
Source : AC Nielsen March 2007/2008
SUCCESSFUL HAIR CARE BRANDS (IN HYPER & SUPERMARKETS) Brand
Customer target
Key point formula
Company
Ad Campaigns concept
Elsève
Women
technicity
L’Oréal
Star endorsement
Head & Shoulders
Men a Women
Healthy skin head
P&G
Dandruff treatment BUT beautiful hair too
Ultra Doux
Family
Simply Natural
L’Oréal
Happy Family moment
Fructis
Young
Technicity in Natural
L’Oréal
Young dynamic people
Dop
For your tribe (family, ethnic)
Senses pleasure
L’Oréal
children
Le Petit Marseillais
Family
Natural
Laboratoires Vendomes
people in nature
Timotei
Family
Natural
Unilever
people and natural product
Nivéa
Young women
Holistic Beauty
Beierdorf
Female customers
Dove
Women
Moisturing
Unilever
Normal beauty
By U
Family
Natural extract PuicareR
Système U (private label)
-
EXTENSION RANGE Brand
shampoo
conditioner styling
color
men
kids
Elsève
+
+
-
-
-
-
Head & Shoulders
+
+
-
-
+
-
Ultra Doux
+
+
-
-
-
+
Fructis
+
+
+
-
-
-
Dop
+
+
+
-
-
+
Le Petit Marseillais
+
+
-
-
-
+
Timotei
+
+
+
-
+
+
Nivéa
+
+
-
-
+
-
Dove
+
+
-
-
-
-
By U
+
+
-
-
-
-
Herbal Essences
+
+
+
-
-
-
Consumers want it natural !!!
TRENDWATCHING
OVERVIEW OF CUSTOMERS MIND
The growing segment : the Gen Y (or Millenials)
10-35 years old they are over-informed. they prefer informal sources to build their mind and consult opinions before buying products they are concerned by their future They are looking for, they use Internet to choose their hairstyle and know how to do their hair
TRENDS SINCE 2000’S
Customers are looking for healthy life Trends of organic food organic products Rejection of parabens, silicones products Alternative medicine (phytotherapy, plants infusion,…)
Concerns about Earth future Global warming Energy saving Water waste Environment respect
Concerns about society issues Fair-trade Work of children
ANALYSIS
The successful brands to compete with
COMPETITORS
THE NATURAL ORIENTED BRAND 1980 : creation of Ultra Doux brand (to replace Moelle Garnier) Natural and softness formula : “The nature coming from plants’ heart” 2000 : extension for children 2001 : Hair care mask 2003: new hair care with vegetable oil
BRAND DNA simply natural
shine
family
softness diversity
Now the new formula of Ultra Doux are paraben-free. Since 2000, The umbrella brand Garnier (which includes Ultra Doux) is working on environmental friendly packaging
THE NATURAL ORIENTED BRAND The TV commercial are about mothers and their child(ren) http://www.garnier.fr/_fr/_fr/ultradoux/index.aspx#/Spot/olive_citron/ http://www.garnier.fr/_fr/_fr/ultradoux/index.aspx#/Spot/argan_cranber ry/ http://www.garnier.fr/_fr/_fr/ultradoux/index.aspx#/Spot/avocat_karite/
The Packaging emphasizes the natural aspect: •Brand name •Visual of the natural ingredient •Natural ingredient name •Promise and type of hair in the bottom in small letters
THE NATURAL ORIENTED BRAND 1970’s : creation of the brand in Sweden 1985 : first conditionner 2008 : Timotei goes green (change of packaging) Donation of € 25,000 to an environment project Tagline “Unleash the beauty of Nature” Inspired by Nature secrets
BRAND DNA Softness
Vegetable ingredient
Natural beauty The brand communicates about its commitment only on his website : no perception by the customer
THE NATURAL ORIENTED BRAND Timotei shampoo : inspired by Nature secrets: http://www.tellyads.com/show_movie.php?filename=TA6415
Funny advertisement for styling: •Stereotypes of “bad hair” applied to animals (nature?) to show that even the worse hair can be disciplined •“Thanks to Timotei styling, your have a natural style”
A clear packaging : •Brand name •Promise of the product in text •Visual of the natural ingredient •Type of hair in the bottom
THE NATURAL ORIENTED BRAND •Launched in 1996, Fructis is the first shampoo with fruits active ingredient •Technological formulas •2000 : extension to styling agents Fructis Style
Tagline Pour les cheveux qui brillent avec toute sa force (for really shiny hair)
BRAND DNA Hair discipline
Natural technology
young Active fruit concentrate & vitamins dynamic
No silicone
Since 2000, The umbrella brand Garnier (which includes Fructis) is working on environmental friendly packaging
THE NATURAL ORIENTED BRAND TV commercial : •Immediate results thanks to active ingredient •Umbrella brand GARNIER at the end of each Fructis spots
Styling •Tenue et Brillance •Cire •Hard •Structurant •Endurance 24H
A large range of product to meet all needs
Hair care •Cheveux normaux •Color resist •Nutri-repair •Hydra-boucles •Hydra liss •Corps & volume •Long & strong •Racines grassespointes sèches •Fresh •Anti-pelliculaire •Anti-chute •Blond Brillance •Meches brillance
THE NATURAL ORIENTED BRAND
1986 : the brand is bought by Laboratoires Vendome 1998 : new range for children 1999 : hair care products : formula based on natural extracts and oil with mediterranean perfume 2002 : the hair care are adapted to hair types 2003 : packaging makeover BRAND DNA tradition
authenticity
natural Mediterranean
family
Tagline “Naturellement vrai” (naturally true)
THE NATURAL ORIENTED BRAND A large range of products •Sh. Cheveux Regraissant Vite •Sh. Apaisant •Sh. +A-Sh. + Mask + zeste Eclat Cheveux colorés & méchés •Sh. Tonifiant cheveux normaux •Sh. +A-Sh + Mask Cheveux Secs, Abîmés & Cassants •Sh. Sh. Cheveux Normaux •Sh. Cheveux Dévitalisés Fragilisés •Sh. Antipelliculaire •Sh +A-Sh+ care Mask Cheveux Longs – Lin Amande douce •Sh. Cheveux Fins – Blé Laurier Rose •Sh. Antipelliculaire Menthe Verte Pin Maritime •Zeste démêlant - Tout type de cheveux •Soin Pure Brillance au Vinaigre de Figue
Communication core About authenticity of Mediterranean recipe with natural product
THE NATURAL ORIENTED BRANDS COMPETITORS
have a natural image even if the natural ingredient are a minor part in the formula.
They communicate a lot about the vegetable extracts properties (more than their commitment for the environment)
The first step of positioning of Herbal Essence = To get a true natural perception for the customer (even if the ingredient list is not really natural yet)
Why it doesn’t work on French market ?
HERBAL ESSENCE CURRENT IMAGE
HISTORY OF THE BRAND
Created in 1971 : Original Herbal Essences
Communication about flowers and nature hippie trend
1994 : Concept of orgasm and pleasure in the shower Campaign called “Yes!Yes!Yes!” 2001 : Clairol (the company which owned Herbal Essence) is bought by P&G 2004 : Herbal Essence enters French market (Yes!campaign is aired) 2005 : The range “Fruit Fusion” is labeled “Produit de L’année” 2006 : styling range is developed 2007 : Herbal Essence Makeover abroad The brand is out of France. Presence in Europe now :
United Kingdom Deutschland Espana Netherlands Polska Portugal Slovenija Magyarorszag
AN IMAGE WHICH DIDN’T CONVINCE FRENCH CUSTOMERS Tagline The promise of “a totally organic experience” Product Core Amazing fruity/flower perfume Beauty hair Cute old fashion bottle
Communication core For young women Intense pleasure (like orgasm) Sexually uncomplexed Natural ingredients
No consistency between Yes! Campaign and the product real benefits
AS A RESULT : IN 2007 THE BRAND IS OUT OF FRENCH MARKET
The brand is not order anymore by hypermarkets because of its poor performance
The brand didn’t fit with the general trend based on technical advantage for beautiful hair launched by Elsève, Schwarzkopf or Nivéa
Doing a campaign about sexuality and with not clear intention (was it a joke or unrealistic promise?) was risky misunderstanding of customers
PORTFOLIO HISTORY Former packaging and ads (as it was in France) •Hair color •Shampoo •Conditionner
New packaging and ads (2007) •Hair color •Shampoo •Conditionner •Styling agents
CURRENT PORTFOLIO
Body envy
Break’s over Color me happy Dangerously straight Drama clean Hair color Hello hydratation
http://www.youtube.com/watch?v=8zKTHw4Puk8&feature=related
http://www.youtube.com/watch?v=l7qkmPUeqf0&feature=related
Hydralycious Longterm relationship http://www.youtube.com/watch?v=8YYLzRpXh9k&feature=related
Ne flackin’ way None of your frizzness Set me up stylers Shimmery nights Totally twisted
THE CURRENT POSITIONING OUTSIDE FRANCE
A new packaging and new formulas Colorful packages : to watch easily the products in the shelves Funny products names : to catch teenagers attention and to be different from the other brands
Target : the Generation Y
Young, dynamic Taking care of their image (teens and tweens issues) Over-informed with Internet
Girly packaging and a young image which compete with Sunsilk positioning strategy “Life can’t wait!” BUT : as Sunsilk also failed in France, the brand should find a new orientation…
POD & POP OF HERBAL ESSENCE
POP
POD
•Communication about natural perfume •Cover all hair types and problems •Doubt of customers about ethical issues
•Bright colorful packaging •Funny names •Better help to learn how to do your hair useful for girls •Communication about different sensorial aspect of beauty and nothing about effect of each ingredient
•Same target as Fructis : young dynamic people
•More axed about natural fruit extract than technological fruit extract (Fructis)
Short term strategy : a fun & comitted brand
NEW POSITIONING PROPOSAL 1/2
BEN&JERRIE’S ICE CREAM CASE Ingredients coming from fair-trade Sponsoring of social and humanitarian association/events/etc. Invest in social project Communication about global warming But also Original and delicious recipe Original names (Fossil Fuel, Phish food, Chunky Monkey, etc.) Funny ad-campaigns of events
NEW POSITIONING INSPIRED BY B&J’S CONCEPT
What to keep ? Natural formulas The new logo The funny products names The concept of tutorials on the website that has a special part to help teenagers to do hair
What to throw away? The orgasmic pleasure concept which is irrelevant The packaging : are they recyclable? The color are too bright and girly for the tweens target and boys
BRAND IMAGE
A young brand : dynamic, fun
Looking for the future : respectful for environment, committed in causes (sponsoring of social, humanitarian events)
Taking care of you : effective formulas for hair beauty and healthy hair, helps you to do your hair (video tutorial, advice), informs you
Natural : natural extract in the formulas, plants/flower/fruits perfumes
Herbal Essence = Help & Enjoy! because you can be committed for causes and be fun at the same time : HE helps Earth/ helps you for hair beauty & Enjoy life/Enjoy the natural perfume
BRAND DNA natural effective
fun ecological
Help & Enjoy!
Takes care of you
Committed in causes
BRAND AFFINITY
Association :
BRAND AFFINITY
As the brand is supporting good causes, the customer feels proud to take part in these projects by buying the product create a Herbal Essences community
functional ego
native
Society : The brand is supporting many causes as environment protection, humanitarian causes, etc. Helping animal protection would be a empathy good strategy to stop animal testing rumor
association
cosmopolitan
society emotional
BRAND AFFINITY
BRAND AFFINITY
functional
Emotional : the message is “be committed but also have fun” so the communication is about the happy sensations thanks to cleaned hair (perfume, softness, shine)
empathy
association
Functional : the products are the solutions for beautiful hair because the formula is made to clean, to repair and to add a plus value (shiny, straight, etc.) hair.
native
Cosmopolitan : the range of product is large and fits with all types of hair.
ego
Empathy : This brand is taking care of you by : Researching for the best formulas for hair beauty and health Giving advice to get a beautiful hair style beauty adviser on line, tutorials, etc.
cosmopolitan
society emotional
VISUALS CONCEPT – HELP & ENJOY
PERCEPTUAL MAP : ETHICAL ISSUES Without paraben silicone
Animal testing
No Animal testing
Contains paraben/silicon e
PERCEPTUAL MAP - VALUE High quality
For Adult
For family
For young people
Low quality
Traditionnal
PERCEPTUAL MAP
Low price
High price
Innovative
Non committed
PERCEPTUAL MAP
soft
dynamic
committed
COMPETITORS
ANALYSIS
The new brands to compete with due to the new positioning
EXTENSION RANGE OF THE COMPETITORS IN
FRANCE (DISTRIBUTION IN SELECTE STORES) conditioner
Cure & treatment
styling
color
Face care
Body care
Shower & Bath
Cosmetics & perfume
Medicine/pills
Dr. Hauschka
+
+
+
-
-
+
+
+
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-
Logona
+
+
-
+
+
+
+
+
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-
Lavera
+
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-
+
-
+
+
+
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-
Melvita
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-
-
+
+
+
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+
Phytosolba
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-
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Yves Rocher
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-
-
+
+
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-
Body Shop
+
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-
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Brand
shampoo
Only pharmaceutical competitors are studied (luxury organic products are too expensive to be competed by Herbal Essence which will be an accessible natural brand as Yves Rocher and Body shop)
THE ORGANIC/BIO BRAND "There is no such thing as bad hair; there is only poorly treated hair.“ - Mr. Patrick Alès, •1960’s : Development of natural products (Huile d’Ales, Phyto7,…) •1969 : Creation of the company Laboratoires Phytosolba •1998 : Launch of Phytospecific (1rst natural product for black hair) •2003 : Phytocolor •2006 : Phytoprogenium : “intelligent” shampoo in ecological packaging A brand based on natural ingredient and innovation (of formula, packaging or hair issues)
Respect of hair Without silicones
Phytotheratrie concept ecological
natural
Plants expertise
THE ORGANIC/BIO BRAND A large range of products in 3 categories : •“Les embellisseurs” : natural hair care according to desire (styling, sun protect, well-being, color revival) •“Les spécifiques”: treatment for hair disorders (dandruff,…) •“Les essentiels” : natural hair care according to hair nature (dry hair, oily hair,vetc.)
•Distribution in Cosmetics store (Sephora) and pharmacy •No advertising campaign Communication based on articles in the magazines, the complete website, word of mouth (blogs and beauty website)
THE ORGANIC/BIO BRAND 1967 : Collaboration between Dr. Rudolf Hauschka (Austrian chemist) & Elisabeth Sigmund (Austrian cosmetologist)
Tagline “De la Nature pour l’Etre humain” (Nature for human being)
THE ORGANIC/BIO BRAND 1977 : Creation of the brand by Hans Hansel (nature curist) in Germany • • • • •
No synthetic ingredient (such paraben) Organic plant extract minimal resource consumption during manufacturing minimal and recyclable packaging for the finished products. No animal testing
THE ORGANIC/BIO BRAND •1977 : Bernard & Philippe CHEVILLIAT settle down in Ardèche (province of France) and become beekeepers. •1982 : creation of Melvita : organic products based on beehive product (honey, wax, etc.) •2002 : get the label ECOCERT (European organic label) They are distributed all over France in bio stores or on the Internet.
Organic and precious ingredient
No chemical ingredient Ecological and simple packaging
Fair trade Committed for the environment
No animal test
THE ORGANIC/BIO BRAND 1987 : Thomas Haase founded Lavera (means “Truth”) in Germany •commitment to the purest organic ingredients •the absence of synthetic preservatives, additives, petroleum-based ingredients, emulsifiers, colors and fragrances. •In order to assure skin tolerance, dermatological tests are done on volunteers with sensitive skin •no animal testing is performed
Communication points : •“Truly natural cosmetics, not just another pretty tube in the bathroom!” •“Reveal your natural beauty with Lavera's natural cosmetics!”
THE ORGANIC/BIO BRAND Creator of vegetable cosmetics •1959 : Creation of Yves Rocher Brand (sale on mail order •1969: 1rst store Yves Rocher Products are only sold in YR store or in homeshopping A popular brand : in France, 1/3 women use Yves Rocher brand
New logo project
Nature science feminine
respectful
careful
beauty natural
THE NATURAL ORIENTED BRAND Communication about environment measure and natural recipe (vegetable cosmetics) but no certification for the moment (objective for 2010)
Try to limit unnecessary packaging
THE NATURAL ORIENTED BRAND The 5 values that customers remembered well : •Activate Self-Esteem •Against Animal Testing •Support Community Trade •Protect Our Planet •Defend Human Rights natural sensual
trendy committed
NEW POSITIONING PROPOSAL 2/2 Long term strategy : to get the organic/ecological label for a respectful and natural brand
NEW BRAND IMAGE
A mature brand : responsible, taking care of the environment for determined people who know what they want
Looking for the future : respectful for environment, committed in causes (sponsoring of social, humanitarian events), does fair-trade for special ingredient (Max Havelaar label)
Taking care of you : effective formulas for hair beauty and healthy hair, the priority is well-being of the customer
Natural : natural and organic extract in the formulas (organic label), plants/flower/fruits light perfumes
Target 25-45 year-old people who grew up and build their values between Earth future and their own well-being
BRAND DNA organic personality Help & Enjoy ecological Committed in causes
Plant expertise Take care of you
BRAND AFFINITY
Association : As the brand is supporting good causes, the customer feels proud to take part in these projects by buying the product. Moreover the brand uses only organic ingredient which is a proof of high quality for premium users. So, the customer who buy HE product feels that she belongs to the determined, natural and responsible people category.
ego
native
empathy
association
Society : As the product has yet the labels, it is directly considered as respectful with ethical codes (no animal testing, environment friendly, trying to help local workers,…)
functional
Emotional : the message is still around the happy sensations around shampoo (when the partner/child smells or touch your hair in unique moments, having a relaxing shampoo after the tiring work day , etc.)
cosmopolitan
society emotional
BRAND AFFINITY
Cosmopolitan : the organic products fit with all types of hair (large range of products
functional
Empathy : This brand is taking care of you by :
nativ e
ego Researching for the best organics formulas for hair beauty and health Giving advice to get a beautiful hair against stress and busy urban life Developing non-pollution manufacturing and ecological packaging
association
empathy
Ego : Customer well-being is the priority because you feel good when you feel pretty, and HE makes you feel unique and beautiful
cosmopolitan
society emotional
A REAL NATURAL BRAND
As Herbal essence has already a natural image, the idea is to go further by getting the organic label need to change the formulas
Some ingredients could also be coming from fairtrade
So the brand becomes more mature : more focused on well-being, natural beauty and environmental awareness the competitive advantage is the commitment of the brand in association projects and it is the first organic hair care brand sold in hypermarkets (even if the price is similar to the other organic brands)
PERCEPTUAL MAP Without synthetic ingredient
Animal testing No Animal testing
Contains paraben/silicon e
PERCEPTUAL MAP - VALUE High quality
For Adult
For family For young people
Low quality
Traditionnal
PERCEPTUAL MAP
Low price
High price
Innovative
Non committed
PERCEPTUAL MAP
soft
dynamic
committed
STRETCHING MATRIX Home care
Personal care
candle incense Oil to purify the air Accessories for home (incense bowl, air purifier, candle support
Shower/bath Massage oil
Essential oil for therapy
Body care Hair color shampoo Hair treatment conditioner cosmetics styling skin care Phytotherapy organic products
ATTENTION
THANK YOU FOR YOUR
INFORMATION SOURCES • Sites www.prodimarques.com http://www.maxhavelaarfrance.org/ www.strategies.fr http://www.sports-sante.com http://www.mademoiselle-bio.com/ http://www.superbrands.easysite.org Official websites of brands (Garnier, Timotei, etc.) • Blogs and forums for customer perception http://delicesdemanon.canalblog.com http://tendancesandco.blogspot.com/ http://une-bulle-en-ville.fr/?p=38 http://www.bladi.net/forum www.ciao.fr www.toluna.fr http://forum.aufeminin.com/forum/beaute1 www.protection-des-animaux.org/forum • Magazines Point de vente (#1027 – 2008) LSA (#1996 – 2007) Packaging World Magazine – 2007
