Table 4-3: Top Five Marketers of Cosmeceuticals in Prestige Outlets (rank)
Led by P&G, Three Companies Account for over Half of Mass-Market Cosmeceuticals
Table 4-4: Marketer Share of Cosmeceuticals in Mass-Market Outlets (Mass Merchandisers, Drugstores, and Supermarkets) (percent): 9 marketers
Five Companies Have Shares between 6% and 9%
Two Other Companies Have Shares over 1%
Hair Care Category — Marketer/Brand Shares
Brand Share Data for Prestige Channel Are Unavailable
Top Two Marketers Account for Nearly Three Quarters of Cosmeceutical Hair Care in Mass Outlets
Procter & Gamble Will Have Nearly Half the Market
Unilever and Alberto-Culver Occupy the Second Tier
All Other Marketers Have Shares Below 4%
The Same Marketers and Brands Dominate Shampoos and Conditioner
Table 4-5: Marketer/Brand Shares of Cosmeceutical Hair Care (Shampoos and Conditioners), 2001 (percent): 11 marketers, 19 brands
Skin Care Category — Marketer/Brand Shares
Estée Lauder’s Lead Is Stronger in Overall Sales and Skin Care Sales in Prestige Outlets
Top Three Marketers Account for over 50% of Sales in Mass Outlets
Unilever, Procter & Gamble, and Beiersdorf in a Dead Heat
Kao Corporation and Johnson & Johnson Make up the Second Tier
Five Other Marketers Have Shares over 1%
Table 4-6: Marketer/Brand Shares of Skin Care Products in Mass-Market Outlets, 2001 (percent): 11 marketers, 17 brands
Hair Growth Category — Marketer/Brand Shares
Rogaine and Private-Label Are the Only Significant Players
Table 4-7: Marketer/Brand Shares of Hair Growth Products in Mass-Market Outlets, 2001 (percent): 3 marketers, 3 brands
Competitive Profile: Alberto-Culver
Sales of $2.5 Billion in 2001
A History of Innovation
Two Business Segments
Cosmeceutical Specialty Ingredients Help Keep Alberto V05 Fresh
Same Price Range and a Line Similar to Unilever’s Suave
Alberto-Culver Bought St. Ives Laboratories in 1996
St. Ives Moves into Anti-Aging
Tresemmé Completes Alberto-Culver’s Coverage of Price Points
Competitive Profile: Avon Products, Inc.
Sales of $5.7 Billion in 2000
Avon’s Direct Sales Model
Cosmeceutical Skin Care Is a Major Part of Avon’s Product Line
Major Cosmeceutical Skin Care Lines
A Wide Range of Products, a Fast Pace for Product Introduction
Avon’s Foray into Stores
Competitive Profile: Beiersdorf AG
Sales of 4.12 Billion Euros in 2000
Fifth-Place Company in U.S. Cosmeceuticals in Mass-Market
Co-Enzyme Q10 and Other Miracle Ingredients
Experiment in Men’s Skin Care
Competitive Profile: The Estée Lauder Companies, Inc.
Net Sales of $4.6 Billion in Fiscal 2001
A Global Skin Care and Cosmetics Marketer
A Prestige Marketer of Many Faces, Tentatively Exploring Mass Outlets
Brands for Every Prestige Niche
A Pioneer in Cosmeceutical Skin Care
Bringing Cosmeceuticals to Male Consumers
Fighting Gravity
Initiatives in Specialty Retailing
Competitive Profile: Johnson & Johnson
Johnson & Johnson Marks 66 Consecutive Years of Sales Increases
Company History
Organization
Acquisitions and Internal Expansion Lead to a Commanding Position in Skin Care
The Cosmeceutical Products
Neutrogena
RoC
Competitive Profile: Kao Corporation/Andrew Jergens Company
Sales of $8 Billion in Fiscal 2000
Jergens and Curél Launch Anti-Aging Products
Competitive Profile: L’Oréal Group
The World’s Largest Beauty Products Company
Familiar Brands
A Global Marketer with 500 Brands
Broad Range and Sound Financial Footing Are L’Oréal’s Competitive Advantages
Relatively Small Share of Cosmeceutical Hair Care in Mass Outlets
L’Oréal Plenitude Versus Oil of Olay
Taking Aim at Still Older Women with Revitalift and Age Perfect
Top End of Mass
A Cosmeceutical in the Cetaphil Line-up
Lancôme: the Essence of Chic
Other L’Oréal Prestige Skin Care Brands
Competitive Profile: Pharmacia Corporation
Sales of $18.1 Billion in 2000
Major Brands/Familiar Brands
Shedding the “Frankenfood” Image
Pharmacia Is Confined to a Cosmeceuticals Niche
Competitive Profile: Procter & Gamble
Sales of $39.2 Billion in Fiscal 2001
Company History
Familiar P&G Brands
Moving from Soap to Health and Personal Care
Purchase of Clairol Strengthens P&G’s Presence in Cosmeceuticals
P&G Purchased Oil of Olay in 1985
Oil of Olay’s 1995 BHA Setback
Back to the Drawing Board: Age-Defying Series, ProVital, and Total Effects
Cosmeceutical Hair Care: Pantene and B5
Vidal Sassoon
The Clairol Brands: Herbal Essences, Aussie, and Infusium
Competitive Profile: Unilever
Sales of $44 Billion in 2000
The World’s Largest Joint Venture
U.S. Operating Companies and Familiar Brands
Cosmeceutical Brands in Skin Care and Hair Care
Unilever Versus Procter & Gamble
Unilever Champions the Low End
Pond’s Declines in the Face of Increased Competition
New Product Trends in Cosmeceutical Skin Care
Patented Complexes
Table 4-8: U.S. Cosmeceuticals Market New Product Introductions with Patented Complexes (listing): 8 marketers, 9 brands
Day/Night and Prevent/Correct
Table 4-9: U.S. Cosmeceuticals Market Selected New Cosmeceuticals Introductions for Day/Night (listing): 10 marketers, 13 brands
Sunscreen
Table 4-10: U.S. Cosmeceuticals Market Selected New Cosmeceuticals Introductions with Sunscreen (listing): 11 marketers, 12 brands
Blemish Control
Table 4-11: U.S. Cosmeceuticals Market Selected New Cosmeceuticals Introductions: Blemish Fighting (listing): 7 marketers, 7 brands
Firm & Lift/Anti-Cellulite
Table 4-12: U.S. Cosmeceuticals Market Selected New Cosmeceuticals Introductions: Firm/Lift (listing): 10 marketers, 10 brands
Other Trends, Current and Over
New Product Trends in Hair Care
Trendy Ingredients: Soy, Keratin
Table 4-13: U.S. Cosmeceuticals Market New Cosmeceutical Hair Care Products with Soy or Keratin (listing): 5 marketers, 6 brands
Aromatherapy
Table 4-14: U.S. Cosmeceuticals Market New Cosmeceutical Hair Care Products: Aromatherapy (listing): 6 marketers, 6 brands
Shampoos and Conditioners for Color-Treated Hair
Table 4-15: U.S. Cosmeceuticals Market New Cosmeceutical Hair Care Products for Color-Treated Hair (listing): 9 marketers, 9 brands
Segmentation by Function and Type of Hair
Table 4-16: U.S. Cosmeceuticals Market New Cosmeceutical Hair Care Products for Special Hair Problems (listing): 7 marketers, 7 brands
Estimated Advertising Expenditures
Approximately Half a Billion Spent in 2000
All Media Used
Bristol-Myers Squibb Leads with 15% of Total Expenditures
With 13%, Procter & Gamble Is Second-Place Spender
Beiersdorf and L’Oréal Each Account for 11% of Total Spending
Three Marketers with Very Different Market Shares Each Account for 8% of Total Spending
Four Other Companies Spend over $15 Million
Four Companies Spend around $5 Million Each
Consumer Advertising Positioning
Cosmeceuticals Market Positioning Differs Sharply between Categories
In the Hair Care Category the Theme Is “Healthy Hair”
Shine, Moisture, and Volume as Characteristics of Healthy Hair
Healthy Can Be Fun
Hair Care Advertisers Use Salon Cachet
Celebrity Endorsements in Hair Care
The Skin Care Category: Science and Aging
The Message of Skin Aging Is Even Addressed to the Young
The Ingredient Story
Celebrity Endorsements in Skin Care
Hair Growth Advertising
Consumer Promotion
Promotions Focus on Coupons
Buy One, Get One Free and Cross-Merchandising
Free Samples at Department Stores and in Direct Mail
Contests, Big Publicity Events Are Relatively Rare
Retail and Distribution
At the Distribution Level
Cosmeceuticals Take Complex and Varied Distribution Paths
DSD Brings Economy of Scale
Traditional Distribution Still Has Advantages
“Lean Retailing” Trend in Apparel Will Affect Cosmeceutical Distribution
From Warehouse to Distribution Center
Diversion and the “Gray Market”
At the Retail Level: Overview
A Changing Retail Picture
Mass-Market Outlets Constitute 59% of Sales
At the Retail Level: Prestige Outlets
Price, Selection, and Service
Department Stores in Changing Times
Department Stores Losing Ground to Specialty Stores
In Skin Care Prestige Outlets Focus on the Face
Pricing at Prestige Outlets
Department Stores Appeal to Older Customers
Specialty Stores Priced Lower, with a Smaller Selection
At the Retail Level: Mass-Market Outlets
Mass Merchandisers, Drugstores, and Supermarkets
Mass Merchandisers Offer Low Prices and Wide Selection
Mass Merchandisers Lead in Every Cosmeceuticals Category Except Hair Growth
Supermarkets Avoid the Higher Price Points
Drugstores’ Share Is Dwindling
Mass Merchandisers Are Trying to Offer More Service to Sell Cosmeceuticals
Proliferation of New Products Is a Challenges to Retailers
Product Placement Challenges Retailers
No “Seniors” Section
At the Retail Level: Alternative Retail
Alternative Retail Is Important but Ambiguous
Natural Food Stores
Direct Marketing
Word Is Still out on Internet Sales Growth
Estée Lauder Shows Commitment to the Internet by Purchasing Gloss.com
The Consumer
Note on Sources
Interpreting Simmons Market Research Bureau Data
The Cosmeceuticals Market Consumer
Gender Is the Key Factor for Overall Use
The Skin Care Category Consumer
Brand Profiles Are Clues to the Cosmeceutical Skin Care User
The Overall Skin Care Consumer
63% of Adult American Women Use Facial Moisturizers
Use by Men at Zero in Simmons’ Sample
“All Users” — Mildly Upscale, Older than Average
Table 6-1: Facial Moisturizer Use by Age, 2001 (number)
“Medium” Users Are Older and Better Educated than Average
Heavy Users Tend to Be 35-54
Table 6-2: Demographic Characteristics Favoring Use of Facial Moisturizers: All Users, Medium Users, and Heavy Users, 2001 (13 factors)
Lotions Are the Preferred Form
Table 6-3: Demographic Characteristics Favoring Facial Moisturizers by Type: Cream vs. Lotion, 2001 (13 factors)
More Use Sunscreen or Sunblock
Table 6-4: Demographic Characteristics Favoring Facial Moisturizers by Type: Sunscreen/Sunblock vs. Without Sunscreen/Sunblock, 2001 (13 factors)
Brand Profiles Are Key to Cosmeceutical Aspects
Users of Cosmeceutical Brands Are Older than Users of All Facial Moisturizers
Avon Facial Moisturizers
Clinique Facial Moisturizers
Estée Lauder Facial Moisturizers
Oil of Olay Facial Moisturizers
Pond’s Facial Moisturizers
Table 6-5: Demographic Characteristics Favoring Adult Use of Facial Moisturizers by Brand: Avon, Clinique, and Estée Lauder, 2001 (13 factors)
Table 6-6: Demographic Characteristics Favoring Adult Use of Facial Moisturizers by Brand: Oil of Olay, Pond’s, and Vaseline, 2001 (13 factors)
Little Information Available for Cosmeceutical Side of Hand and Body Moisturizers
Female Users Outnumber Male Users by about Three to One
Cosmeceutical Trends Revealed in Brand Profiles
Age Peaks in Two Separate Groups
Table 6-7: Demographic Characteristics Favoring Use of Hand and Body Moisturizers: All Users, Medium Users, and Heavy Users, 2001 (13 factors)
Table 6-8: Demographic Characteristics Favoring Adult Use of Hand and Body Moisturizers by Brand: Clinique, Eucerin, and Jergens Advanced Therapy Aloe & Lanolin, 2001 (12 factors)
Table 6-9: Demographic Characteristics Favoring Adult Use of Hand & Body Moisturizers by Brand: Jergens Advanced Therapy — Vitamin E, Nivea, and St. Ives, 2001 (13 factors)
The Hair Care Category Consumer
Using Hair Care Brand Surveys to Study the Cosmeceuticals Consumer
Brand Data Point to a Young, Female, Mildly Upscale Cosmeceutical Shampoo User
Cosmeceutical Conditioner Users also Trend Young
All, Medium, and Heavy Shampoo Users
Table 6-10: Demographic Characteristics Favoring Use of Shampoo, 2001 (13 factors): Medium, Heavy
Sharper Differences Define Users of Specialized Shampoos
For Color-Tinted Hair
For Silver-Grey Hair
For Damaged Hair
For Dry Hair
For Extra Body
Table 6-11: Demographic Characteristics Favoring Adult Use of Shampoo by Type: For Color-Tinted Hair, For Silver-Grey Hair, and For Damaged Hair, 2001 (13 factors)
Table 6-12: Demographic Characteristics Favoring Adult Use of Shampoo by Type: For Dry Hair and For Extra Body, 2001 (13 factors)
Brand Profiles of Cosmeceutical Shampoos
L’Oréal Vive Shampoo
Pantene Shampoo
Pantene Pro-V Shampoo
Salon Selectives Shampoo
Suave Shampoo
Tresemmé
Table 6-13: Demographic Characteristics Favoring Adult Use of Shampoo by Brand: L’Oréal Vive, Pantene, and Pantene Pro-V, 2001 (13 factors)
Table 6-14: Demographic Characteristics Favoring Adult Use of Shampoo by Brand: Salon Selectives, Suave, and Tresemmé, 2001 (13 factors)
Cosmeceutical Conditioner Users and Brands
Clairol Herbal Essences Conditioner
Pantene Conditioner
Pantene Pro-V Conditioner
Suave Conditioner
Thermasilk Conditioner
Table 6-15: Demographic Characteristics Favoring Use of Conditioner, 2001 (13 factors)
Table 6-16: Demographic Characteristics Favoring Adult Use of Conditioner by Brand: Clairol Herbal Essences, Pantene, and Pantene Pro-V, 2001 (13 factors)
Table 6-17: Demographic Characteristics Favoring Adult Use of Conditioner by Brand: Suave and Thermasilk, 2001 (13 factors)
The Hair Growth Consumer
More Women Than Men Use Hair Growth Products
Age Is the Most Significant Factor
Table 6-18: Demographic Characteristics Favoring Adult Use of Hair Growth Products for Six Months or More, 2001 (13 factors)
Appendix I: Examples of consumer and trade
advertising and promotions
(0 items)
