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USA - Men's Grooming Segmentation Report 2013

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Page 1: USA - Men's Grooming Segmentation Report 2013
Page 2: USA - Men's Grooming Segmentation Report 2013

Men‘s Segmentation

CONFIDENTIAL – L’OREAL USA

Page 3: USA - Men's Grooming Segmentation Report 2013

Media

Brand

Retail Product

Setting Strategy = Making Choices & Recalibrating

While some companies set strategies by first deciding which product or brands to sell or

perhaps which retail outlets to sell within, L’Oreal is deliberately setting strategy by first

choosing the key consumers that can best drive future growth

With this approach, our strategy will truly be a consumer-first strategy

Consumer

CONFIDENTIAL – L’OREAL USA

Page 4: USA - Men's Grooming Segmentation Report 2013

In doing this, we confirmed our expectation: not all men are created equal in male grooming

Trendy Innovators

Affluent Adopters

Polished Professionals

Active Independents

Curious Laggards

Content Laggards

% of Spend*

Spend Index

21% 37% 17% 11% 8% 6%

5% 9% 25% 20% 27% 15% % of Men

Low spend Average spend High spend

More Involved

in Male

Grooming

Less Involved

in Male

Grooming

4 In typical 3 months

420 411 68 55 29 40

Source: Ipsos 2012 A&U (G1. Please think about all of the products that you personally use. About how much did you spend n total for these products in the past 3 months?

CONFIDENTIAL – L’OREAL USA

Page 5: USA - Men's Grooming Segmentation Report 2013

The more highly involved groups rely on male grooming products to meet a broad set of needs

Trendy Innovators

5% men 21% spend

Affluent Adopters

9% men 37% spend

Polished Professionals

25% men 17% spend

Active Independents

20% men 11% spend

Curious Laggards 27% men 8% spend

Content Laggards 15% men 6% spend

90% 91% 92% 50% 71% 43%

75% 81% 43% 29% 18% 7%

94% 89% 95% 53% 80% 58%

76% 87% 48% 28% 20% 9%

81% 87% 72% 42% 60% 51%

77% 86% 63% 35% 33% 13%

87% 86% 82% 45% 66% 45%

79% 82% 37% 27% 10% 2%

% Agree – Reasons Why Men Use Personal Grooming Products

Source: Ipsos 2012 A&U (B2. Below are some reasons why men use personal grooming products. Using the scale below, please indicate

how much you agree or disagree that these are reasons why you, yourself use personal grooming products.)

Note: Cells 70% or higher are highlighted

Feel good w/ looks

Impress others

Look best

Change up look

Please partner

Feel secure

Look professional

Stand out

% of men % of spend

CONFIDENTIAL – L’OREAL USA

Page 6: USA - Men's Grooming Segmentation Report 2013

And they are also the ones most likely to invest time and energy into their grooming routines

Trendy Innovators

5% men 21% spend

Affluent Adopters

9% men 37% spend

Polished Professionals

25% men 17% spend

Active Independents

20% men 11% spend

Curious Laggards 27% men 8% spend

Content Laggards 15% men 6% spend

93% 94% 82% 21% 61% 33%

78% 93% 41% 18% 4% 0%

78% 93% 22% 15% 3% 1%

76% 93% 17% 16% 1% 1%

84% 90% 71% 20% 32% 15%

92% 90% 57% 20% 20% 5%

85% 89% 34% 16% 2% 0%

Look good effortlessly

Invest in grooming

Seek advice

Give advice

$ more on issues

Spice up my look

Try new products

% of Men Who Stated That The Following Statements Most Described Them

Note: Cells 70% or higher are highlighted

Source: Ipsos 2012 A&U (B5. People have different attitudes about personal grooming and personal grooming products. Please look at the statements below and indicate how much you agree or disagree with each.

% of men % of spend

CONFIDENTIAL – L’OREAL USA

Page 7: USA - Men's Grooming Segmentation Report 2013

In turn, higher rates of use are reflected in both the number of overall products and brands using

Trendy Innovators

5% men 21% spend

Affluent Adopters

9% men 37% spend

Polished Professionals

25% men 17% spend

Active Independents

20% men 11% spend

Curious Laggards 27% men 8% spend

Content Laggards 15% men 6% spend

12 14 11 8 8 7

20 22 18 12 11 9

# products1

# brands2

# of Products & Brands Used

1 In past 4 weeks; 2 In past year

Source: Ipsos 2012 A&U (A3. And which of the following types of products have you, yourself used in the past four weeks? E4. And which of these

brands of [INSERT CATEGORY] products have you used in the past year?

% of men % of spend

CONFIDENTIAL – L’OREAL USA

Page 8: USA - Men's Grooming Segmentation Report 2013

They are more likely to use styling, facial skincare and fragrance products.

Trendy Innovators

5% men 21% spend

Affluent Adopters

9% men 37% spend

Polished Professionals

25% men 17% spend

Active Independents

20% men 11% spend

Curious Laggards 27% men 8% spend

Content Laggards 15% men 6% spend

96% 94% 96% 92% 94% 92%

92% 86% 95% 88% 93% 92%

68% 64% 66% 55% 49% 38%

52% 54% 49% 31% 23% 15%

64% 64% 53% 38% 25% 15%

54% 57% 41% 28% 14% 7%

27% 41% 20% 11% 8% 5%

25% 30% 27% 14% 11% 6%

68% 61% 66% 44% 40% 31%

HAIR CARE & STYLING (94%)

Shampoo (92%)

Conditioner (55%)

Hair Styling (34%)

FACIAL SKINCARE (38%)

Cleanser/Scrub/Astringent (28%)

Moisturizer (15%)

All Other Facial Skincare (17%)

FRAGRANCE (49%)

% of Men Who Use the Following Products (past 4 weeks)

Note: Cells 120+ or <80 or higher are highlighted

Source: Ipsos 2012 A&U (A3. And which of the following types of products have you, yourself used in the past four weeks?)

% of men % of spend

CONFIDENTIAL – L’OREAL USA

Page 9: USA - Men's Grooming Segmentation Report 2013

They are also more likely to use body wash, body moisturizers and after-shave.

Trendy Innovators

5% men 21% spend

Affluent Adopters

9% men 37% spend

Polished Professionals

25% men 17% spend

Active Independents

20% men 11% spend

Curious Laggards 27% men 8% spend

Content Laggards 15% men 6% spend

94% 90% 99% 92% 97% 96%

74% 64% 74% 62% 76% 75%

79% 76% 70% 58% 47% 41%

38% 37% 44% 20% 22% 16%

97% 94% 98% 92% 97% 93%

93% 90% 97% 88% 94% 89%

57% 46% 65% 44% 51% 45%

48% 41% 43% 26% 28% 19%

7% 19% 3% 2% 1% 0%

BODY CARE (96%)

Bar Soap (71%)

Body Wash (58%)

Body Moisturizer/Lotion (28%)

SHAVING AND BEARD (95%)

Any Razor (92%)

Shaving Cream (52%)

After-Shave (32%)

Razorless Hair Removal (e.g Nair) (4%)

% of Men Who Use the Following Products (past 4 weeks)

Note: Cells 120+ or <80 or higher are highlighted

Source: Ipsos 2012 A&U (A3. And which of the following types of products have you, yourself used in the past four weeks?)

% of men % of spend

CONFIDENTIAL – L’OREAL USA

Page 10: USA - Men's Grooming Segmentation Report 2013

TRENDY INNOVATORS (5% of men pop/ 21% spend)

He aspires to have the latest and greatest, the Trendy Innovator is in the know and wants his

appearance to make a statement and put him on the cutting edge.

Nick is 32 years old and lives North Buckhead, just

outside of Downtown Atlanta, which it isn’t too far from

his offices at Deloitte where he is a Computer Software

Manager.

He lives in a 3 bedroom house with his wife and 2 year

old which is walking distance to Little Nancy Creak Park,

where he enjoys working out and playing basketball.

He cares about how he looks, both physically and in

grooming, but does not want to look like he is trying too

hard. It’s important to him to look professional and at his

best as well as appear attractive to his wife.

He enjoys shopping and changing up his look and is

always on the look out for great new grooming products

and wanting to be the first to try a new product.

CONFIDENTIAL – L’OREAL USA

Page 11: USA - Men's Grooming Segmentation Report 2013

14%

22%

35%

29%

10-250K 250-1M 1M-5M 5M +

10%

32% 33%

13% 12%

18-24 25-34 35-44 45-54 55-64

Tend to skew younger, married, skew Hispanic and AA, and slightly toward living in bigger cities

Fam

ily D

ynam

ics

Age

Ran

ge

Size

of

Ho

me

Cit

y

Avg. Age: 38 (all men: 45)

Trendy Innovators

11%

58%

85%

Not Heterosexual Married 2+ HH Size

Source: Ipsos 2012 A&U (AGE. What is your age? ZIP. What is your 5-digit ZIP code? USMAR2. What is your marital status? USRETH2. Are you of Hispanic, Latino or Spanish origin? USRACE3. What is your race?)

All Men Trendy Innovators

Eth

nic

ity

/ R

ace

63%

24% 7% 4%

White Hispanic AA Asian

CONFIDENTIAL – L’OREAL USA

Page 12: USA - Men's Grooming Segmentation Report 2013

20%

43%

14% 12% 13%

< $35K $35-75K $75-100K $100-150K $150K +

They tend toward average income, exercise frequently and are more apt to dress formally for work.

HH

Inco

me

Wo

rk D

ress

Co

de

Avg. Income: 80K (all men: 75K)

All Men Trendy Innovators

38%

33%

5%

24%

Biz Casual Casual Uniform Formal

Source: Ipsos 2012 A&U (USHHI2. Please indicate your annual household income before taxes. OTHER3A. How often do you exercise or participate in an athletic activity?) US32EMP. Which of the following best describes your employment status? WORK4. Would you describe the dress code at your job as . . .?)

Trendy Innovators

Exe

rcis

e

14% 16%

34% 36%

< 2 / mo 1 -2 / wk 3 - 6 / wk 1 / day +

CONFIDENTIAL – L’OREAL USA

Page 13: USA - Men's Grooming Segmentation Report 2013

They are frequent product users, especially styling, fragrance and skincare

Used 1+ in Past 4 Weeks Use Every Day

All Men

Trendy Innovators All Men

Trendy Innovators

Hair Care & Styling 94% 96% 65% 77%

Shampoo 92% 92% 61% 70%

Conditioner 55% 68% 30% 46%

Hair Styling 34% 52% 22% 41%

Facial Skincare 38% 64% 26% 52%

Cleanser/Scrub/Astringent 28% 54% 20% 43%

Moisturizer 15% 27% 11% 28%

Other Facial Skincare 17% 25% 9% 17%

Fragrance 49% 68% 31% 56%

Note: Cells with Indices of 120+ are highlighted

12.1 Avg. Products Used

Source: Ipsos 2012 A&U (A3. And which of the following types of products have you, yourself used in the past four weeks? A4. How often do you use each of the following types of products?)

Trendy Innovators

CONFIDENTIAL – L’OREAL USA

Page 14: USA - Men's Grooming Segmentation Report 2013

They skew toward daily usage of body care and shaving products

Used 1+ in Past 4 Weeks Use Every Day

All Men

Trendy Innovators All Men

Trendy Innovators

Deodorant 91% 87% 80% 82%

Body Care 96% 94% 77% 87%

Body Wash 58% 79% 38% 63%

Bar Soap 71% 74% 55% 58%

Body Moisturizer / Lotion 28% 38% 19% 35%

Shaving & Beard 95% 97% 45% 62%

Any Razor 92% 93% 41% 54%

Shaving Cream 52% 57% 21% 32%

After-Shave 32% 48% 16% 33%

Razorless Hair Remover 4% 7% 2% 2%

12.1 Avg. Products Used

Trendy Innovators

Note: Cells with Indices of 120+ are highlighted

Source: Ipsos 2012 A&U (A3. And which of the following types of products have you, yourself used in the past four weeks? A4. How often do you use each of the following types of products?)

CONFIDENTIAL – L’OREAL USA

Page 15: USA - Men's Grooming Segmentation Report 2013

These men generally tend toward mass/upper mass brands, some Luxe and Professional and are the biggest Axe users

Hair Deodorant Shaving Body Face Fragrance

Source: Ipsos 2012 A&U (E4. And which of these brands of [INSERT CATEGORY] products have you used in the past year?)

Top 7 Over-Indexing Brands in terms of Past Year Usage, by Product Category*

* Fewer brands shown if less than 7 significantly over-index (80% CL)

Trendy Innovators

19.9 Avg. Brands Used

CONFIDENTIAL – L’OREAL USA

Page 16: USA - Men's Grooming Segmentation Report 2013

They are not only using social media and smart phones, they are using them to interact with and shop for products

How They Consume Media

26%

32%

61%

36%

38%

60%

70%

85%

Read local paper

Read men's magazines

Watch Fox

Watch CNN

Use YouTube

Own smartphone

Use Facebook

Use any social media

Depth of Media Involvement

Avg hrs/week browsing social media=6.4 (vs. 4.4 for all men)

26%

29%

45%

33%

72%

Used coupon onSmartphone

Purchased product witha Smartphone

Visited a brand’s Facebook page

Posted about brand/product on Facebook

“Liked” a brand on Facebook

Source: Ipsos 2012 A&U (M1. Which of the following do you own? M2. Which of these websites and social networking sites, if any, are you currently a member of? M4. What types of magazines do you typically read (either print or online)? M4a. And what newspapers do you typically read (either online or a hard copy)? M2a. Which of the following have you ever done? M3. And, which of the following have you, yourself, done (at home, at work, or elsewhere) during the past 30 days using each of the devices below? M3b. How many hours a week do you spend on social networking sites like Facebook and Twitter?)

Trendy Innovators All Men Trendy Innovators

CONFIDENTIAL – L’OREAL USA

Page 17: USA - Men's Grooming Segmentation Report 2013

They enjoy shopping and are the most active online shoppers, like searching for new products and wiling to pay for premium/specialty

Where They Shop Attitudes about Shopping*

12%

4%

13%

15%

13%

27%

32%

35%

41%

70%

93%

Active/Sporting Goods Stores

Salon/Spa/Barbershop

Fine Department Stores

Apparel Stores

Specialty Stores

Traditional Department Stores

Discount Department Stores

Internet/Online

Supermarkets / Grocery Stores

Drug Stores

Mass Merchandise Stores

39

48

44

52

51

51

53

54

59

57

First to try new products

Search for new/different products

Willing to pay more forrecommended products

Shopping is enjoyable for me

Name brands are worth the extraprice

Only go to stores with best qualityproducts

Like variety of products available

Look for healthy products

Willing to pay more forpremium/specialty products

I enjoy taking my time when Ishop

*Expressed as max diff utility scores, defined as the “value” consumers place on a given attribute relative to other attributes being rated. They represent the probability that a given attribute will be selected compared to others.

Source: Ipsos 2012 A&U (C5. Where have you or someone else (for you) shopped for the personal grooming products that you use in the past year?

SECTION H: Next, you will be shown a series of different statements that may or may not describe your shopping behavior. For each set of statements, choose the one that MOST describes you and the one that LEAST describes you.)

Trendy Innovators All Men Trendy Innovators

CONFIDENTIAL – L’OREAL USA

Page 18: USA - Men's Grooming Segmentation Report 2013

AFFLUENT ADOPTERS (9% of men / 37% of spend)

He wants the best so he can be the best and is not willing to make any sacrifices when investing in himself.

Tyler is 29 years old, just finished up his MBA from

Columbia and works in Finance for NBC Universal.

Recently engaged, Tyler rents a duplex in Tribeca with

his fiancée. They pride themselves on being among the

first to try hot new restaurants and nightclubs.

Tyler is very driven and success is something he expects

and does what is necessary to achieve it. He is a member

of several professional organizations and active in

alumni activities for Columbia.

Keeping up physically and visually is very important to

him. He is at Equinox every morning at 6:00am before

going into the office. When he wants to relax, he will

indulge with a trip to spa or a good competitive game of

basketball.

Tyler enjoys giving advice about what products to use

and aspires to be the “resident expert”, but stays very

conscious of what others think of him and does not

want to seem like he is trying too hard to look good.

He enjoys shopping and shops at many specialty and high

end stores. CONFIDENTIAL – L’OREAL USA

Page 19: USA - Men's Grooming Segmentation Report 2013

... tend to be younger, married men living in big cities and are disproportionately ethnic

Affluent Adopters

All Men Affluent Adopters

Fam

ily D

ynam

ics

Age

Ran

ge

Eth

nic

ity

/ R

ace

Si

ze o

f H

om

e C

ity

Avg. Age: 36 (all men: 45)

13% 18%

27%

42%

10-250K 250-1M 1M-5M 5M +

8%

43%

30%

14%

4%

18-24 25-34 35-44 45-54 55-64

12%

66%

92%

Not Heterosexual Married 2+ HH Size

58%

23% 12% 7%

White Hispanic AA Asian

Source: Ipsos 2012 A&U (AGE. What is your age? ZIP. What is your 5-digit ZIP code? USMAR2. What is your marital status? USRETH2. Are you of Hispanic, Latino or Spanish origin? USRACE3. What is your race?)

CONFIDENTIAL – L’OREAL USA

Page 20: USA - Men's Grooming Segmentation Report 2013

And are much wealthier, more likely to dress formally and exercise regularly

HH

Inco

me

Wo

rk D

ress

Co

de

13%

18% 19% 18%

31%

< $35K $35-75K $75-100K $100-150K $150K +

Avg. Income: 124K (all men: 75K)

31%

24%

11%

34%

Biz Casual Casual Uniform Formal

All Men Affluent Adopters

Source: Ipsos 2012 A&U (USHHI2. Please indicate your annual household income before taxes. USEDU2. What is the highest degree or level of school you have completed? US32EMP. Which of the following best describes

your employment status? WORK4. Would you describe the dress code at your job as . . .?)

Affluent Adopters

Exe

rcis

e

16% 10%

36% 38%

< 2 / mo 1 -2 / wk 3 - 6 / wk 1 / day +

CONFIDENTIAL – L’OREAL USA

Page 21: USA - Men's Grooming Segmentation Report 2013

They are frequent users of styling, facial skincare and fragrance products

Used 1+ in Past 4 Weeks Use Every Day

All Men

Affluent Adopters All Men

Affluent Adopters

Hair Care & Styling 94% 94% 65% 73%

Shampoo 92% 86% 61% 65%

Conditioner 55% 64% 30% 49%

Hair Styling 34% 54% 22% 45%

Facial Skincare 38% 64% 26% 53%

Cleanser/Scrub/Astringent 28% 57% 20% 48%

Moisturizer 15% 41% 11% 34%

Other Facial Skincare 17% 30% 9% 23%

Fragrance 49% 61% 31% 44%

13.9 Avg. Products Used

Note: Cells with Indices of 120+ are highlighted

Source: Ipsos 2012 A&U (A3. And which of the following types of products have you, yourself used in the past four weeks? A4. How often do you use each of the following types of products?)

Affluent Adopters

CONFIDENTIAL – L’OREAL USA

Page 22: USA - Men's Grooming Segmentation Report 2013

Used 1+ in Past 4 Weeks Use Every Day

All Men

Affluent Adopters All Men

Affluent Adopters

Deodorant 91% 82% 80% 71%

Body Care 96% 90% 77% 77%

Body Wash 58% 76% 38% 60%

Bar Soap 71% 64% 55% 54%

Body Moisturizer / Lotion 28% 37% 19% 28%

Shaving & Beard 95% 94% 45% 61%

Any Razor 92% 90% 41% 53%

Shaving Cream 52% 46% 21% 30%

After-Shave 32% 41% 16% 33%

Razorless Hair Remover 4% 19% 2% 13%

These men tend to be daily users of body care and shaving products

13.9 Avg. Products Used

Affluent Adopters

Note: Cells with Indices of 120+ are highlighted

Source: Ipsos 2012 A&U (A3. And which of the following types of products have you, yourself used in the past four weeks? A4. How often do you use each of the following types of products?)

CONFIDENTIAL – L’OREAL USA

Page 23: USA - Men's Grooming Segmentation Report 2013

Top 7 Over-Indexing Brands in terms of Past Year Usage, by Product Category

These men use upper mass brands but are more involved with smaller, niche brands across categories & channels

Hair Deodorant Shaving Body Face Fragrance

Source: Ipsos 2012 A&U (E4. And which of these brands of [INSERT CATEGORY] products have you used in the past year?)

Affluent Adopters

22.0 Avg. Brands Used

CONFIDENTIAL – L’OREAL USA

Page 24: USA - Men's Grooming Segmentation Report 2013

They are big users of social media and smartphones and interact with brands there

Depth of Media Involvement

13%

29%

42%

51%

52%

54%

71%

95%

Read local paper

Read men's magazines

Watch Fox

Watch CNN

Use YouTube

Own smartphone

Use Facebook

Use any social media

How They Consume Media

32%

31%

50%

43%

74%

Used coupon onSmartphone

Purchased product witha Smartphone

Visited a brand’s Facebook page

Posted about brand/product on Facebook

“Liked” a brand on Facebook

Avg hrs/week browsing social media=8.8 (vs. 4.4 for all men)

Source: Ipsos 2012 A&U (M1. Which of the following do you own? M2. Which of these websites and social networking sites, if any, are you currently a member of? M4. What types of magazines do you typically read (either print or online)? M4a. And what newspapers do you typically read (either online or a hard copy)? M2a. Which of the following have you ever done? M3. And, which of the following have you, yourself, done (at home, at work, or elsewhere) during the past 30 days using each of the devices below? M3b. How many hours a week do you spend on social networking sites like Facebook and Twitter?)

Affluent Adopters All Men Affluent Adopters

CONFIDENTIAL – L’OREAL USA

Page 25: USA - Men's Grooming Segmentation Report 2013

The enjoy shopping. They frequent specialty, department stores, and salons, value/willing to pay more for quality

Where They Shop Attitudes about Shopping*

14%

12%

21%

24%

21%

29%

27%

27%

52%

67%

92%

Active/Sporting Goods Stores

Salon/Spa/Barbershop

Fine Department Stores

Apparel Stores

Specialty Stores

Traditional Department Stores

Discount Department Stores

Internet/Online

Supermarkets / Grocery Stores

Drug Stores

Mass Merchandise Stores

All Men Affluent Adopters

38

34

36

47

45

46

52

51

50

56

51

First to try new products

Ambience over price

Like to shop with someone I trust

Like new and different products

Pay more for products that wererecommended

Shopping is enjoyable for me

Name brands are worth the extraprice

Only go to stores that have thebest quality products

Like variety of product availabile

Willing to pay more forpremium/specialty products

I enjoy taking my time when Ishop

*Expressed as max diff utility scores, defined as the “value” consumers place on a given attribute relative to other attributes being rated. They represent the probability that a given attribute will be selected compared to others.

Affluent Adopters

Source: Ipsos 2012 A&U (C5. Where have you or someone else (for you) shopped for the personal grooming products that you use in the past year?

SECTION H: Next, you will be shown a series of different statements that may or may not describe your shopping behavior. For each set of statements, choose the one that MOST describes you and the one that LEAST describes you.)

CONFIDENTIAL – L’OREAL USA

Page 26: USA - Men's Grooming Segmentation Report 2013

POLISHED PROFESSIONAL (25% of men / 17% of spend)

Ben is 45 years old and lives just outside of Denver in a

townhome.

He has been in real estate for 15 years and works

primarily with luxury real estate for the downtown area.

He works out 3-4 times a week in order to maintain a

youthful physique and appear attractive to women.

Being healthy is important to him and he enjoys an

active social life and loves how Denver caters to the

active, single professional.

As he is getting older, looking young and feeling

confident are why he is conscious of exercising and

grooming. Ben considers taking care of himself to be a

top priority.

He likes to balance traditional mass brands with

established high-end brands in his routine and they all

must be effective and work for him, especially for his

skincare and fragrance products.

He is clean cut, settled and will be in the early majority following the trends to keep up with his

colleagues but is never over the top in his style or grooming. He turns to grooming products as a way to

maintain a youthful appearance.

CONFIDENTIAL – L’OREAL USA

Page 27: USA - Men's Grooming Segmentation Report 2013

They are of average age, likely to live in medium size cities, and with slight Hispanic and AA skews

Fam

ily D

ynam

ics

Age

Ran

ge

Size

of

Ho

me

Cit

y

Avg. Age: 43 (all men: 45)

8%

18%

23%

31%

19%

18-24 25-34 35-44 45-54 55-64

Polished Professionals

12%

45%

79%

Not Heterosexual Married 2+ HH Size

15% 20%

39%

27%

10-250K 250-1M 1M-5M 5M +

Source: Ipsos 2012 A&U (AGE. What is your age? ZIP. What is your 5-digit ZIP code? USMAR2. What is your marital status? USRETH2. Are you of Hispanic, Latino or Spanish origin? USRACE3. What is your race?)

All Men Polished Professionals

Eth

nic

ity

/ R

ace

77%

11% 8% 3%

White Hispanic AA Asian

CONFIDENTIAL – L’OREAL USA

Page 28: USA - Men's Grooming Segmentation Report 2013

19%

36%

19%

14%

8%

< $35K $35-75K $75-100K $100-150K $150K +

Average income and exercise often but not daily.

HH

Inco

me

Wo

rk D

ress

Co

de

Avg. Income: 76K (all men: 75K)

42% 37%

12% 9%

Biz Casual Casual Uniform Formal

Source: Ipsos 2012 A&U (USHHI2. Please indicate your annual household income before taxes. USEDU2. What is the highest degree or level of school you have completed? US32EMP. Which of the following best describes

your employment status? WORK4. Would you describe the dress code at your job as . . .?)

Polished Professionals

All Men Polished Professionals

Exe

rcis

e

21% 20%

41%

18%

< 2 / mo 1 -2 / wk 3 - 6 / wk 1 / day +

CONFIDENTIAL – L’OREAL USA

Page 29: USA - Men's Grooming Segmentation Report 2013

They skew toward frequent use of most products, especially fragrance.

Used 1+ in Past 4 Weeks Use Every Day

All Men

Polished Professionals All Men

Polished Professionals

Hair Care & Styling 94% 96% 65% 73%

Shampoo 92% 95% 61% 67%

Conditioner 55% 66% 30% 38%

Hair Styling 34% 49% 22% 32%

Facial Skincare 38% 53% 26% 38%

Cleanser/Scrub/Astringent 28% 41% 20% 30%

Moisturizer 15% 20% 11% 15%

Other Facial Skincare 17% 27% 9% 13%

Fragrance 49% 66% 31% 45%

11.2 Avg. Products Used

Polished Professionals

Note: Cells with Indices of 120+ are highlighted

Source: Ipsos 2012 A&U (A3. And which of the following types of products have you, yourself used in the past four weeks? A4. How often do you use each of the following types of products?)

CONFIDENTIAL – L’OREAL USA

Page 30: USA - Men's Grooming Segmentation Report 2013

They are regular users of body care and shaving products

Used 1+ in Past 4 Weeks Use Every Day

All Men

Polished Professionals All Men

Polished Professionals

Deodorant 91% 94% 80% 89%

Body Care 96% 99% 77% 85%

Body Wash 58% 70% 38% 50%

Bar Soap 71% 74% 55% 59%

Body Moisturizer / Lotion 28% 44% 19% 29%

Shaving & Beard 95% 98% 45% 50%

Any Razor 92% 97% 41% 45%

Shaving Cream 52% 65% 21% 29%

After-Shave 32% 43% 16% 21%

Razorless Hair Remover 4% 3% 2% 1%

Note: Cells with Indices of 120+ are highlighted

11.2 Avg. Products Used

Source: Ipsos 2012 A&U (A3. And which of the following types of products have you, yourself used in the past four weeks? A4. How often do you use each of the following types of products?)

Polished Professionals

CONFIDENTIAL – L’OREAL USA

Page 31: USA - Men's Grooming Segmentation Report 2013

They balance traditional and upper mass brands, as well as designer fragrances and professional hair care

Hair Deodorant Shaving Body Face Fragrance

Source: Ipsos 2012 A&U (E4. And which of these brands of [INSERT CATEGORY] products have you used in the past year?)

Top 7 Over-Indexing Brands in terms of Past Year Usage, by Product Category*

* Fewer brands shown if less than 7 significantly over-index (80% CL)

Polished Professionals

18.1 Avg. Brands Used

CONFIDENTIAL – L’OREAL USA

Page 32: USA - Men's Grooming Segmentation Report 2013

They are active media consumers but involvement is at average levels

How They Consume Media

52%

28%

63%

32%

43%

57%

76%

86%

Read local paper

Read men's magazines

Watch Fox

Watch CNN

Use YouTube

Own smartphone

Use Facebook

Use any social media

Depth of Media Involvement

Avg hrs/week browsing social media=4.5 (vs. 4.4 for all men)

23%

20%

52%

25%

65%

Used coupon onSmartphone

Purchased product witha Smartphone

Visited a brand’s Facebook page

Posted about brand/product on Facebook

“Liked” a brand on Facebook

Source: Ipsos 2012 A&U (M1. Which of the following do you own? M2. Which of these websites and social networking sites, if any, are you currently a member of? M4. What types of magazines do you typically read (either print or online)? M4a. And what newspapers do you typically read (either online or a hard copy)? M2a. Which of the following have you ever done? M3. And, which of the following have you, yourself, done (at home, at work, or elsewhere) during the past 30 days using each of the devices below? M3b. How many hours a week do you spend on social networking sites like Facebook and Twitter?)

Polished Professionals All Men Polished Professionals

CONFIDENTIAL – L’OREAL USA

Page 33: USA - Men's Grooming Segmentation Report 2013

They frequent traditional, discount department stores, professional salons and aren’t afraid to spend for special concerns

Where They Shop Attitudes about Shopping*

5%

11%

10%

8%

11%

27%

23%

24%

48%

63%

86%

Active/SportingGoods Stores

Salon/Spa/Barbershop

Fine Department Stores

Apparel Stores

Specialty Stores

Traditional Department Stores

Discount Department Stores

Internet/Online

Supermarkets / Grocery Stores

Drug Stores

Mass Merchandise Stores

32

46

46

45

50

55

55

55

60

66

73

Search for new/diff products

Shopping is enjoyable for me

Name brands are worth the extraprice

Only go to stores with best qualityproducts

Like variety of products available

Willing to pay more forpremium/specialty products

I enjoy taking my time when Ishop

Go out of way to store with wideselection

Well known brands moretrustworthy

Pay $ for specific needs

Like stores with men's aisle

*Expressed as max diff utility scores, defined as the “value” consumers place on a given attribute relative to other attributes being rated. They represent the probability that a given attribute will be selected compared to others.

Source: Ipsos 2012 A&U (C5. Where have you or someone else (for you) shopped for the personal grooming products that you use in the past year?

SECTION H: Next, you will be shown a series of different statements that may or may not describe your shopping behavior. For each set of statements, choose the one that MOST describes you and the one that LEAST describes you.)

Polished Professionals All Men Polished Professionals

CONFIDENTIAL – L’OREAL USA

Page 34: USA - Men's Grooming Segmentation Report 2013

ACTIVE INDEPENDENTS (20% of men / 11% of spend)

As a rugged and laid back guy, he isn’t going to keep up on what’s the latest and greatest – he needs a

simple routine that isn’t going to slow him down or hold him back.

Josh is 38 and just moved into a new apartment in

the Lincoln Park area of Chicago.

He works in Ecommerce for Kraft Foods. On the

weekends, he bartends at a local sports bar

close to Wrigley Field to meet people but also

make some extra money on the side.

If someone calls him up to go out, head to a

baseball game, go out on the lake – you name it,

Josh is the first one to join and he is constantly

on the go.

He isn’t particularly interested in settling down

or starting a family quite yet. He is enjoying his

freedom and is laid back about the future.

Josh is budget conscious overall and also in

his grooming purchases. He is apathetic

towards grooming and uses the basics across

all categories.

CONFIDENTIAL – L’OREAL USA

Page 35: USA - Men's Grooming Segmentation Report 2013

10%

22% 25% 24%

19%

18-24 25-34 35-44 45-54 55-64

Average age, tend toward larger cities, less likely to be married, skew Asian

Fam

ily D

ynam

ics

Age

Ran

ge

Eth

nic

ity

/ R

ace

Si

ze o

f H

om

e C

ity

Avg. Age: 42 (all men: 45)

All Men Active Independents

Active Independents

8%

47%

75%

Not Heterosexual Married 2+ HH Size

15% 13%

39% 32%

10-250K 250-1M 1M-5M 5M +

Source: Ipsos 2012 A&U (AGE. What is your age? ZIP. What is your 5-digit ZIP code? USMAR2. What is your marital status? USRETH2. Are you of Hispanic, Latino or Spanish origin? USRACE3. What is your race?)

77%

9% 3% 7%

White Hispanic AA Asian

CONFIDENTIAL – L’OREAL USA

Page 36: USA - Men's Grooming Segmentation Report 2013

25%

35%

15% 14%

7%

< $35K $35-75K $75-100K $100-150K $150K +

Moderate income, tend toward casual/ business casual work style

HH

Inco

me

Wo

rk D

ress

Co

de

Avg. Income: 71K (all men: 75K)

39% 37%

14% 11%

Biz Casual Casual Uniform Formal

Source: Ipsos 2012 A&U (USHHI2. Please indicate your annual household income before taxes. USEDU2. What is the highest degree or level of school you have completed? US32EMP. Which of the following best describes

your employment status? WORK4. Would you describe the dress code at your job as . . .?)

Active Independents

All Men Active Independents

Exe

rcis

e

26%

15%

39%

20%

< 2 / mo 1 -2 / wk 3 - 6 / wk 1 / day +

CONFIDENTIAL – L’OREAL USA

Page 37: USA - Men's Grooming Segmentation Report 2013

They use products with average frequency

Used 1+ in Past 4 Weeks Use Every Day

All Men

Active Independents All Men

Active Independents

Hair Care & Styling 94% 92% 65% 65%

Shampoo 92% 88% 61% 60%

Conditioner 55% 55% 30% 30%

Hair Styling 34% 31% 22% 21%

Facial Skincare 38% 38% 26% 24%

Cleanser/Scrub/Astringent 28% 28% 20% 19%

Moisturizer 15% 11% 11% 8%

Other Facial Skincare 17% 14% 9% 8%

Fragrance 49% 44% 31% 29%

8.3 Avg. Products Used

Note: Cells with Indices of 120+ are highlighted

Source: Ipsos 2012 A&U (A3. And which of the following types of products have you, yourself used in the past four weeks? A4. How often do you use each of the following types of products?)

Active Independents

CONFIDENTIAL – L’OREAL USA

Page 38: USA - Men's Grooming Segmentation Report 2013

They are less likely to be using Body Moisturizer

Used 1+ in Past 4 Weeks Use Every Day

All Men

Active Independents All Men

Active Independents

Deodorant 91% 84% 80% 75%

Body Care 96% 92% 77% 70%

Body Wash 58% 58% 38% 37%

Bar Soap 71% 62% 55% 48%

Body Moisturizer / Lotion 28% 20% 19% 14%

Shaving & Beard 95% 92% 45% 42%

Any Razor 92% 88% 41% 40%

Shaving Cream 52% 44% 21% 19%

After-Shave 32% 26% 16% 13%

Razorless Hair Remover 4% 2% 2% 1%

Note: Cells with Indices of 120+ and <80 are highlighted

8.3 Avg. Products Used

Source: Ipsos 2012 A&U (A3. And which of the following types of products have you, yourself used in the past four weeks? A4. How often do you use each of the following types of products?)

Active Independents

CONFIDENTIAL – L’OREAL USA

Page 39: USA - Men's Grooming Segmentation Report 2013

They skew toward traditional mass market brands across categories

Hair Deodorant Shaving Body Face Fragrance

Source: Ipsos 2012 A&U (E4. And which of these brands of [INSERT CATEGORY] products have you used in the past year?)

Top 7 Over-Indexing Brands in terms of Past Year Usage, by Product Category*

* Fewer brands shown if less than 7 significantly over-index (80% CL)

Active Independents

11.9 Avg. Brands Used

CONFIDENTIAL – L’OREAL USA

Page 40: USA - Men's Grooming Segmentation Report 2013

Average involvement with social media and not very engaged with products and brands in the social space

Depth of Media Involvement How They Consume Media

37%

16%

54%

23%

36%

41%

69%

82%

Read local paper

Read men's magazines

Watch Fox

Watch CNN

Use YouTube

Own smartphone

Use Facebook

Use any social media

Avg hrs/week browsing social media=5.3 (vs. 4.4 for all men)

14%

18%

37%

20%

62%

Used coupon onSmartphone

Purchased product witha Smartphone

Visited a brand’s Facebook page

Posted about brand/product on Facebook

“Liked” a brand on Facebook

Source: Ipsos 2012 A&U (M1. Which of the following do you own? M2. Which of these websites and social networking sites, if any, are you currently a member of? M4. What types of magazines do you typically read (either print or online)? M4a. And what newspapers do you typically read (either online or a hard copy)? M2a. Which of the following have you ever done? M3. And, which of the following have you, yourself, done (at home, at work, or elsewhere) during the past 30 days using each of the devices below? M3b. How many hours a week do you spend on social networking sites like Facebook and Twitter?)

All Men Active Independents Active Independents

CONFIDENTIAL – L’OREAL USA

Page 41: USA - Men's Grooming Segmentation Report 2013

They shop the typical channels and are price sensitive deal hunters.

Where They Shop Attitudes about Shopping*

8%

4%

7%

9%

8%

15%

20%

15%

43%

49%

77%

Active/Sporting Goods Stores

Salon/Spa/Barbershop

Fine Department Stores

Apparel Stores

Specialty Stores

Traditional Department Stores

Discount Department Stores

Internet/Online

Supermarkets / Grocery Stores

Drug Stores

Mass Merchandise Stores

28

29

30

39

47

51

55

56

59

66

Get overwhelmed by too manychoices

Prefer to shop alone

Search for new/different products

Often buy store brands instead ofname brands

Willing to give up quality forbetter price

Will switch if another brand ischeaper

Annoyed if miss out on a deal

Will go out of my way to get bestdeals

Wait to buy product on sale

Use coupons to save money

All Men Active Independents

*Expressed as max diff utility scores, defined as the “value” consumers place on a given attribute relative to other attributes being rated. They represent the probability that a given attribute will be selected compared to others.

Source: Ipsos 2012 A&U (C5. Where have you or someone else (for you) shopped for the personal grooming products that you use in the past year?

SECTION H: Next, you will be shown a series of different statements that may or may not describe your shopping behavior. For each set of statements, choose the one that MOST describes you and the one that LEAST describes you.)

Active Independents

CONFIDENTIAL – L’OREAL USA

Page 42: USA - Men's Grooming Segmentation Report 2013

CURIOUS LAGGARDS (27% of men / 8% of spend)

The Curious Laggards are conservative and tend to stick with the practical but are receptive to grooming

advice and becoming a better version of themselves.

Mike is 50 years old and lives in suburban Detroit

with his wife. They just sent their last kid off to

college and are adjusting to a quieter lifestyle.

He works in a car manufacturing facility and has

had a productive career and is content in where he’s

at in his career today.

On the weekends, he and is wife enjoy drinking

wine and catching up on their favorite TV shows.

He enjoys running on the treadmill at the gym or

going for leisurely walks with his wife to relieve

stress and to stay fit, while he is constantly

checking things off of his to-do list.

He uses the grooming basics and doesn’t not

want to spend a lot of time shopping as it is just a

necessity or wants to research what to use. His

wife will sometimes pick him up something if she

notices he’s about it run out of essentials and he’s

willing to give it a try to add to his basic

regimen.

CONFIDENTIAL – L’OREAL USA

Page 43: USA - Men's Grooming Segmentation Report 2013

CONTENT LAGGARDS The content laggard is comfortable with who he is and sees the grooming process as an unnecessary

addition to a man’s life. They use the necessary basics but are comfortable and happy with their

appearance.

Tom is 58 years old and lives in a suburb of

Minneapolis with his wife. He is recently retired and

is loving a slower paced life.

He is enjoying what retirement has to offer and likes

reading, catching up with family and quiet nights at

home.

Tom has little to no interest in keeping up his

appearance or grooming. He uses the necessary

basics but nothing extra.

Tom is content with life as is and is looking forward to

continuing his life of leisure.

He is very traditional and doesn’t believe that men

need to have an expansive grooming regimen.

Shopping for Tom is for necessity purposes only and

not an experience that he enjoys.

STORE BRAND

CONFIDENTIAL – L’OREAL USA

Page 44: USA - Men's Grooming Segmentation Report 2013

Summary Recap

CONFIDENTIAL – L’OREAL USA

Page 45: USA - Men's Grooming Segmentation Report 2013

Men’s Insights: Segmentation Summary Trendy

Innovators Affluent Adopters

Polished Professionals

Active Independents

Curious Laggards

Content Laggards

Mo

re In

volv

ed

Less In

volve

d

5% 9% 25% 20% 27% 15% % Men

21% 37% 17% 11% 8% 6% % Spend

# Product 12.1 13.9 11.2 8.3 7.8 6.7

Products

Use all products Overindexes on:

• Conditioner • Styling • Facial Skincare • Fragrance • Body Wash • Body Moisturizer • After-Shave • Razorless Hair Removal

Use all products Overindexes on:

• Conditioner • Styling • Facial Skincare • Fragrance • Body Wash • Body Moisturizer • After-Shave • Razorless Hair Removal

Use all products Overindexes on:

• Conditioner • Styling • Facial Skincare • Fragrance • Body Wash • Body Moisturizer • Shaving Cream • After-Shave

Use all products but Underindex on: • Body Moisturizer

Use all products but Underindex on: • Styling • Facial Skincare

Use all products but Underindex on: • Conditioner • Styling • Facial Skincare • Fragrance • Body Wash • Body Moisturizer • After-Shave

# Brands 19.9 22.0 18.1 11.9 11.2 9.0

Mass

• Axe • Garnier • Nivea • Drakkar Noir

• Nivea • L’Oreal Paris • Gillette • Magic

• Gillette • Right Guard • Neutrogena • Suave • Garnier

• Old Spice • Axe • Pert Plus • Drakkar Noir

• Suave • Speed Stick • Old Spice • Barbasol • Irish Spring • Store Brand • Stetson

• Suave • Head & Shoulders • Speed Stick • Old Spice • Barbasol • Irish Spring • Store Brand • Stetson

Luxe

• Ralph Lauren • Giorgio Armani • Dolce & Gabbana • Anthony Logistics • Lab Series for Men

• Acqua di Parma • Burberry • Giorgio Armani • Ralph Lauren • Kiehl’s, • Anthony Logistics • Art of Shaving

• Giorgio Armani • Ralph Lauren • Clinique

• Calvin Klein

Prof • American Crew

• American Crew

• John Frieda • Paul Mitchell • American Crew

Source: Ipsos 2012 A&U (G1. Please think about all of the products that you personally use.

About how much did you spend n total for these products in the past 3 months?

CONFIDENTIAL – L’OREAL USA

Page 46: USA - Men's Grooming Segmentation Report 2013

Key Takeaways • All men are not created equally….in grooming. Know Your Consumer.

• 6 distinct segments of men from high to low engagement & involvement

– Opportunity Today: 2 segments, Trendy Innovators & Affluent Adopters – 14% of men’s population and 58% of the spend

– Where majority of L’Oreal brands target

– Opportunity Mid and Long Term: Polished Professionals and Active Independents – 45% of men’s population and 28% of the spend, tipping point segments

– Where majority of L’Oreal brands do not target

• Focused Development & Execution: Target your Consumer, Think right Product,

Communicated in right way and the right Places

– Rethink how to to find, educate, and engage with men today (media or retail).

– Be creative, use digital new Path to Purchase

CONFIDENTIAL – L’OREAL USA

Page 47: USA - Men's Grooming Segmentation Report 2013

Next Steps

This is just the beginning….

1. Setup workshop to review learnings, action plans associated with segmentation for respective businesses

2. Leverage type-in tool to help initially screen for target segments for consumer research and development of new products

3. Activating segmentation to reach target segments

CONFIDENTIAL – L’OREAL USA


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