BATH AND SHOWER

Xuewen Cindy Wenfu XWENFU16@SCHULICH.YORKU.CA

Consumer Insights in the Bath and Shower Category in Canada A STUDY INTO OLAY BATH AND SHOWER

BATH AND SHOWER

Table of Contents Secondary Research Findings 2

Primary Research Findings 3

Conclusion 5

A Unique Way to Look at Consumer Perceptions: Brand Map

6

Appendix 1-Bath and Shower Survey

7

Appendixes 12

References 16

This consumer insight report

for Olay bath and shower

product category is part of a

group project for the Brand

Management course at

Schulich School of Business.

The report examines the

current Canadian market

condition of bath and shower

products through both

secondary and primary

research. A survey was

conducted to find out

consumers’ perceptions,

preference, and behaviours.

Acknowledging the small

sample size for this project,

potential bias might exist. The

report demonstrates the

findings as well as

recommendations tailored

towards the Olay bath and

shower category.

INTRODUCTION TO THE REPORT

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BATH AND SHOWER

Secondary Research Findings Since there are numerous options in the

market, while choosing their bath and shower

products, consumers tend not to focus only on

the cleaning function of the item. Products that

have multifunctional claims, skin care benefits,

natural ingredients, and spa themes are playing a

more important role on attracting buyers

(Cosmetic Business, 2013). The secondary

research findings section of this report will

demonstrate the four important selling factors

for the bath and shower product category:

healthy ingredients, enjoyable bathing and

showering experience, pleasant fragrance, and

convenience brought by multifunctional

products.

Natural and organic ingredients are

attractive to consumers, as they now have higher

awareness on health issue

(MarketResearch.com, 2015). They pay

attention to what they put on their body

(Euromonitor, Bath and Shower in Canada,

2015). Canadians would like to pay more for a

better quality of their cosmetic product

selections and beauty routine (Euromonitor,

Consumer Lifestyle in Canada, 2015). These

ingredients include flowers, essential oils, sea

minerals, herbs, skin softeners, spices, and

added moisturizers (Euromonitor, Bath and

Shower in Canada, 2015). In addition,

consumers see bathing and showering as an

experience. Thus, products that can bring an

enjoyable experience will attract them to make

the purchase (Cosmetic Business, 2013). These

imply that natural ingredients and an enjoyable

showering experience could be two potential

selling points to attract consumers’ attention.

Except for the claimed ingredients,

consumers also pay attention to the scent of

their cosmetic products. Studies show that

consumers usually smell the fragrance before

they make a purchase decision; If the fragrance

is able to invoke a positive emotional response,

it is more likely to lead consumers to a purchase

decision (Shinde, 2013). This not only indicates

that fragrance is a critical first-impression factor

of cosmetic products, but also tells the

importance of body scent for consumers. This is

further supported by the fact that, according to

NIVEA Canada Skin-dex survey (Euromonitor,

Consumer Lifestyle in Canada, 2015), deodorant

is the most essential personal grooming products

in the minds of Canadians. Pleasant and

comfortable fragrance is another selling factor

of bath and shower products.

The demand of convenient and

multifunctional products is growing in Canada.

With the fast pace of modern society, consumers

prefer to have products that can do more in less

time (Euromonitor, Consumer Lifestyles in

Canada, 2015). Examples of products in this

category are dry shampoos, and two-in-one

products. Dry shampoo allows user to fix

oiliness and greasiness of hair in just several

minutes, significantly decreasing the time

needed for a hair-cleaning process. These

products are especially popular for young

millennials (Euromonitor, Consumer Lifestyles

in Canada, 2015). This brings opportunities for

products that claim to have multifunctional

benefits to stand out in the market.

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BATH AND SHOWER

Primary Research Findings The survey (See Appendix 1 for survey)

is broken down to several different sections:

consumers’ perception on Olay, Dove, and the

Body Shop, consumers’ opinions on bath and

showering, consumers’ opinion on corporate

social responsibility, showering habits,

purchasing habits, loyalty, social media habits,

as well as their demographic information.

We asked respondents to rate Dove, the

Body Shop, and Olay on a scale of 1 to 7 on the

following attributes: hygiene, smooth after-use

skin, enjoyable pampering experience,

expensive, attractive packaging, moisturizing,

anti-aging, socially responsible, and hydrating.

Based on the findings (shown above), in the

respondents’ perception, Dove excels in

hygiene, moisturizing, and smooth after-use

skin; the Body Shop excels in socially

responsible, enjoyable pampering experience,

attractive packaging, and expensive pricing;

Olay excels in hydrating, smooth after-use skin,

and anti-aging. This is a result of the strong

associations among Olay’s different product

lines. Consumers recognize the anti-aging

function of Olay’s skin care products, and

associate it with Olay’s bath and shower

products. Comparatively, Olay is low on some

essential attributes of bath and shower products,

such as hygiene and moisturizing.

What is a Brand

Map?

A Brand Map, as shown on

the left, illustrates the

dynamic relationships among

products attributes and

brands studied. The map is

generated based on the

survey results of customers’

rating on different attributes.

If you want to know more

about Brand Map, please

turn to page 6 to for a

detailed explanation of the

map.

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BATH AND SHOWER

According to the survey results

(Appendix 2), 29% of the respondents have

never used Olay bath and shower products

before, followed by the Body Shop (16%), and

Dove (6%). This finding indicates there is still a

long way for Olay to increase its product use.

Coinciding with the findings in

secondary research, results from the survey also

indicate that consumers take showers not only

for hygiene reasons, but also to relax, to smell

good, and to pamper themselves (Appendix 3).

They also pay attention to whether the

fragrances of the bath and shower products are

pleasant.

In terms of consumers’ opinion on

corporate social responsibilities (CSR)

(Appendix 4), they prefer more natural

ingredients, as well as whether the brand takes

initiative to take part in socially responsible

campaigns. However, anti-animal testing is

given less credit as a factor that makes the brand

stand out.

Since Olay is currently targeting female

over the age of 35 and above, we tried to find

out if the age groups have different showering

and purchasing habit. However, based on the

result of the survey (Appendix 5), all age groups

share similar showering and purchasing habits.

The only difference spotted was that, older

consumers are more likely to purchase bath and

shower products in a bundle than a single item.

The similarities among all age group bring

advantage for bath and shower brands. That is,

since habits are shared among the groups,

campaigns that show a specific circumstance of

using the products will be widely accepted by

all age groups. In addition, all age groups are

equally likely to take a shower once a day

(about 58%), and twice a day (about 16%). This

indicates an opportunity for brands to increase

product use, by shifting the majority of people

from taking shower a once a day to twice a day.

This could be done by associating taking shower

a twice a day with the various benefits of using

bath and shower product through a marketing

communication campaign. Based on the survey

findings, almost all the respondents take a

shower after physical activities (90%) and

before special occasions (94%). A brand could

increase its brand recognition level by showing

scenes where people use its product in these two

situations. In this way, people see the brand as

being more relatable to their everyday lives.

According to the survey, low level of

loyalty (Appendix 6) was found in this category.

However, more consumers stick on one brand

and switch to others sometimes. This behaviour

pattern makes bath and shower brands able to

sustain a certain amount of market share. When

switching brands, the first reason is

family/friend recommendations, followed by

discount/promotion.

When asked about their favourite social

media platform to be informed of bath and

shower brands, 61% of respondents chose

Instagram, followed by Facebook with 26%, and

Twitter with 16% (Appendix 7-1). This is an

opportunity for Olay to increase its influence

among younger audiences. Instagram allows

users to share elegant photos and videos of their

experiences in the moment, which coincides

with one of the selling point: enjoyable

showering experience. Olay can also us this

platform to promote its natural ingredients of the

products. By repetitively showing pictures that

demonstrate these theme, consumers’ perception

of Olay’s experience and natural ingredients

will be enhanced. In addition, by showing

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BATH AND SHOWER

presence on Instagram, Olay has the opportunity

to shift its target consumers from the older ones

to the younger. At the moment, Olay’s official

Instagram account has stopped posting

(Appendix 7-2). However, it still have 11,500

followers. Olay could utilize this following to

restart its Instagram campaign. Alternatively,

Olay could start a new account only for its bath

and shower products. For example, Olay’s Fresh

Effect line has a separate account than its

official account (Appendix 7-3). The Fresh

Effect account is currently active, with 100 to

300 likes per post. Fresh Effect is able to

distinguish itself from Olay’s anti-aging product

lines. Based on the findings stated previously,

consumers could not distinguish Olay bath and

shower products with its skin care products on

the anti-aging ability. Therefore, it would be

more beneficial for Olay to have a separate

Instagram account for its bath and shower line.

Conclusion

Except for the cleaning ability of bath

and shower products, Canadian consumer also

focus on the healthy ingredients, enjoyable bath

and shower experience, pleasant fragrance, and

the convenience brought by multifunctional

products. Brands in the category could promote

these four characteristics to win more market

share. Brands with less exposure, such as Olay,

could also focus on promoting the brand’s CSR

actions to consumers. Similar patterns for bath

and shower, as well as purchasing behaviours

were found across all age groups. Therefore,

showing image of people using a specific brand

will make it relatable for consumers in all age

groups. In addition, new campaigns could

increase product use by increasing numbers of

shower taken per day from 1 to 2. Given the fact

that this is a low loyalty category, brands could

eat up market share from each other. One of the

most useful way to attract consumers is

promotion/discount. Finally, consumers are

showing interests in receiving information on

Instagram. To gain more brand recognition, as

well as to separate Olay bath and shower from

Olay skincare, it is better to create an official

account for the bath and shower line.

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BATH AND SHOWER

A Unique Way to Look at Consumer Perceptions: Brand Map

This brand map allows analysts an to look at the dynamic relationships among brands and

consumers’ perceptions towards them. The traditional vector map has multiple limitations: only two

attributes can be compared in one map, brands are located based on the decision-makers’ perceptions

instead of calculated based on mass survey results, and so forth. The new brand map is generated from

survey results with ratings on each attributes for all brands selected, which provides a comprehensive

view compared to the traditional map.

The length of the attribute line represents the easiness for customers to identify the attribute.

The longer the line is, the easier it is for customers to identify this attribute. For example, the line of

Anti-aging is longer than the line of Hydrating. Thus, it is easier for customers to identify if a product

has anti-aging effect than hydrating effects.

The closeness of two attribute lines represents how closely related the two attributes are in

the mind of consumers. For example, Attractive packaging and Expensive are closely related; whereas

Attractive Packaging and Smooth after-use skin are not.

The further the brand is on the line, the more accurate it is to use this attribute to describe the

brand in the mind of consumers. For example, in the graph, consumers think that Olay has very high

Anti-aging capability. On the other hand, the Body shop is considered to have very low Anti-aging

capability since it is located on the negative side of the Anti-aging line.

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BATH AND SHOWER

Appendix 1-Survey

BATH AND SHOWER BRAND SURVEY Thank you for agreeing to fill out this 5-minute survey. This survey will ask your opinion on bath and shower products of Dove, Body Shop, and Olay. Your response is really important to us. Information provided by the survey will be confidential and used only for research purposes. Participation is voluntary, and you could withdraw from the survey at any time.

Are you at least 18 years old? a) Yes b) No [Please hand back the survey. Thank you for your time.)

Have you used at least one of the following brands for their bath and shower products: Dove, the Body Shop, or Olay?

a) Yes b) No [Please hand back the survey. Thank you for your time.)

PART 1 On a scale of 1 to 7, please rate the following features of the bath and shower products of the three brands. Leave it blank if you have not used the brand before. 1. Dove bath and shower products

Strongly Disagree

Neither Agree nor Disagree

Strongly Agree

1 2 3 4 5 6 7

Ability to clean in general

☐ ☐ ☐ ☐ ☐ ☐ ☐

Smooth after-use skin

☐ ☐ ☐ ☐ ☐ ☐ ☐

Enjoyable pampering experience

☐ ☐ ☐ ☐ ☐ ☐ ☐

Expensive ☐ ☐ ☐ ☐ ☐ ☐ ☐ Attractive packaging

☐ ☐ ☐ ☐ ☐ ☐ ☐

Moisturizing ☐ ☐ ☐ ☐ ☐ ☐ ☐

Anti-aging ☐ ☐ ☐ ☐ ☐ ☐ ☐ Socially Responsible

☐ ☐ ☐ ☐ ☐ ☐ ☐

Hydrating ☐ ☐ ☐ ☐ ☐ ☐ ☐

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BATH AND SHOWER

2. The Body Shop bath and shower products

Strongly Disagree

Neither Agree nor Disagree

Strongly Agree

1 2 3 4 5 6 7

Ability to clean in general

☐ ☐ ☐ ☐ ☐ ☐ ☐

Smooth after-use skin

☐ ☐ ☐ ☐ ☐ ☐ ☐

Enjoyable pampering experience

☐ ☐ ☐ ☐ ☐ ☐ ☐

Expensive ☐ ☐ ☐ ☐ ☐ ☐ ☐ Attractive packaging

☐ ☐ ☐ ☐ ☐ ☐ ☐

Moisturizing ☐ ☐ ☐ ☐ ☐ ☐ ☐ Anti-aging ☐ ☐ ☐ ☐ ☐ ☐ ☐ Socially Responsible

☐ ☐ ☐ ☐ ☐ ☐ ☐

Hydrating ☐ ☐ ☐ ☐ ☐ ☐ ☐ 3. Olay bath and body products

Strongly Disagree

Neither Agree nor Disagree

Strongly Agree

1 2 3 4 5 6 7

Ability to clean in general

☐ ☐ ☐ ☐ ☐ ☐ ☐

Smooth after-use skin

☐ ☐ ☐ ☐ ☐ ☐ ☐

Enjoyable pampering experience

☐ ☐ ☐ ☐ ☐ ☐ ☐

Expensive ☐ ☐ ☐ ☐ ☐ ☐ ☐ Attractive packaging

☐ ☐ ☐ ☐ ☐ ☐ ☐

Moisturizing ☐ ☐ ☐ ☐ ☐ ☐ ☐ Anti-aging ☐ ☐ ☐ ☐ ☐ ☐ ☐

Socially responsible

☐ ☐ ☐ ☐ ☐ ☐ ☐

Hydrating ☐ ☐ ☐ ☐ ☐ ☐ ☐

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BATH AND SHOWER

PART 2: 1. On a scale of 1 to 7, please rate the following statement based on your opinion:

Strongly Disagree

Neither Agree

nor Disagree

Strongly Agree

1 2 3 4 5 6 7

I take a shower for hygienic purposes.

☐ ☐ ☐ ☐ ☐ ☐ ☐

I take a shower to relax. ☐ ☐ ☐ ☐ ☐ ☐ ☐

I see showering as a pampering experience.

☐ ☐ ☐ ☐ ☐ ☐ ☐

I take a shower to smell good. ☐ ☐ ☐ ☐ ☐ ☐ ☐

I feel excited about the new fragrances of my soap/body wash.

☐ ☐ ☐ ☐ ☐ ☐ ☐

The moisturizing function of my soap/body wash is very important.

☐ ☐ ☐ ☐ ☐ ☐ ☐

When shopping, I try to smell the scent of the soap/body wash.

☐ ☐ ☐ ☐ ☐ ☐ ☐

A brand stands out when it claims to be against animal testing.

☐ ☐ ☐ ☐ ☐ ☐ ☐

A brand stands out when it uses natural ingredients.

☐ ☐ ☐ ☐ ☐ ☐ ☐

A brand stands out when it cares about social responsibilities.

☐ ☐ ☐ ☐ ☐ ☐ ☐

2. How many times do you usually take a shower per day?

a) I do not take showers daily. b) Once a day. c) Twice a day. d) 3 or more times a day.

3. Do you take a shower before you start your day?

a) Yes. b) No. c) Sometimes

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BATH AND SHOWER

4. Do you take a shower at the end of your day? a) Yes. b) No. c) Sometimes.

5. Do you take a shower after physical activities (e.g. workout, sports)?

a) Yes. b) No. c) Sometimes.

6. Do you take a shower before special occasions (e.g. interview, dinner, party, going out)?

a) Yes. b) No. c) Sometimes.

PART 3: 1. Where do you purchase the majority of your bath and shower products from (choose only

1 option)? a) Health and Beauty Specialist Retailers/Pharmacies (e.g. Shopper’s Drug Mart) b) Brand Retailers (e.g. the Body Shop Retail Stores) c) Supermarkets/wholesale market (e.g. Walmart, Costco) d) Through Online Shopping e) Other, please specify________________

2. When it comes to bath and shower products, are you more likely to purchase a single item

or a bundle (e.g. a value set of 2 or more items) a) Single item b) Bundle

3. Are you a loyal user of your current bath and shower brand?

a) Yes, I only use this brand (Proceed to Question 5). b) Yes, I use this brand most of the time (Proceed to Question 5). c) No, I change brands from time to time.

4. If you selected “No” on the previous question, please select what makes you change brands

(choose the most favorable one) and then continue to Question 6: a) I am attracted by a new ad. b) The other brand is on discount/promotion. c) A friend/family member recommended it to me. d) It doesn’t matter to me; I just choose whichever brand I see first. e) Other, please specify__________________________________________

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BATH AND SHOWER

5. If you selected “Yes” on question 3, please select the reasons that may make you consider another brand (choose the most favorable one). a) A very attractive ad of the other brand. b) The other brand is on discount/promotion. c) My usual brand is not available. d) My friend or family member recommended another brand to me. e) Other, please specify _________________________________________________

6. Which one of the following social media platforms would be most effective and preferable in providing you information about a bath and shower brand? (Please choose only one).

a. Facebook b. Twitter c. Instagram d. YouTube e. I don’t use social media. f. Other ____________________________________

PART 4 1. Please specify your gender.

a) Female b) Male

2. Which age group do you belong to?

a) 18 – 24 years old b) 25 – 34 years old c) 35 – 54 years old d) 55 years and older

3. What is your marital status?

a) Single (not in a relationship) b) In a relationship (not married or common-law) c) Married or Common-Law d) Separated (But still married) e) Divorced f) Widowed

4. What is your approximate annual household income before taxes?

a) Less than $40,000 b) $40,000 - $59,999 c) $60,000 - $69,999 d) $70,000 - $99,999 e) $100,000 or above

Thank you for your participation!

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BATH AND SHOWER

Appendix 2-Brand Exposure

Appendix 3-Showering Experience

Appendix 4-CSR

6%

16%

29%

0%

5%

10%

15%

20%

25%

30%

35%

Dove the Body Shop Olay

Never Used Brand

4 4.2 4.4 4.6 4.8 5

Anti-animal testing

Using natural ingredients

Being socially responsible

Factors causing brands to stand out,scale of 1-7, midpoint=4

0 1 2 3 4 5 6

Hygiene

Relax

Pampering

Smell good

Purpose of taking shower, scale of 1-7, Midpoint=4

4.4 4.6 4.8 5 5.2

Excited about newfragrance

Importance ofmoisturization

Smell scent

Tendency of behaviours,scale of 1-7, Midpoint=4

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BATH AND SHOWER

Appendix 5-Showering and Purchasing Behaviour

42%

19%

39%

0%

10%

20%

30%

40%

50%

Yes No Sometimes

Shower at the start of the day

61%

6%

32%

0%

10%

20%

30%

40%

50%

60%

70%

Yes No Sometimes

Shower at the end of the day

90%

3% 6%0%

20%

40%

60%

80%

100%

Yes No Sometimes

Shower after physical activities

94%

0% 6%0%

20%

40%

60%

80%

100%

Yes No Sometimes

Shower before special occasions

22%

59%

19% 0%0%

10%

20%

30%

40%

50%

60%

70%

Not daily Once Twice 3 times ormore

Times of shower per day

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BATH AND SHOWER

Appendix 6-Brand Loyalty

Appendix 7-Social Media

7-1 Social Media Preference

41%

18%

12%

0%

10%

20%

30%

40%

50%

Discount/promotion Want to try new Attractive new ad

Top reasons to switch-Loyal consumers

7% 16%

77%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

only 1 brand Majorly 1 brand Switch regularly

Brand Loyalty

43%

29%

21%

0%

10%

20%

30%

40%

50%

Family/friendrecommendation

Discount/promotion Usual brand notavailable

Top reasons to switch-Non-loyal consumers

61%

26%

16%

0%

10%

20%

30%

40%

50%

60%

70%

Instagram Facebook Twitter

Social media preference

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BATH AND SHOWER

7-2 Olay Official Instagram Account

7-3 Olay Fresh Effect Instagram Account

Appendix 8-Demographic Information of Respondents (31 respondents)

1.Gender

Male 23%

Female 77%

2. Age Group

Age <35 68%

≥35 32%

3.Marrital Status

Single (not in a relationship) 45%

In a relationship, but not married 23%

Married/Common Law 32%

4.Income Group

≤ $40,000 29%

$40,000-$59,999 29%

$60,00-$69,999 0%

&70,000-$99,999 16%

≥$100,000 26%

Demographic Information

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BATH AND SHOWER

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