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Kairos Learning 01.1: CosmeticsApril 2010
Qualitative Consumer Research and Planning
“The globalconsumer
at yourfingertips”
Kairos Learning 01.1: Cosmetics April 2010
3 Kairos Learning 01.1: Cosmetics April 2010
Capa
bilit
ies
and
Clie
nts
Are you looking to enter a new market?
Do you plan to launch a new product?
Would you like to take a closer look at organic purchasing factors?
Do you want to know which product claims, ingredientscertifications are most relevant to cosmetics consumers?
Are you taking a closer look at cosmetics supply chain?
If any of these scenarios are relevant to your business, know thatKairos Consumers has a solution to meet your needs.We specialize in managing diverse consumer and B2B research projectsfrom inception through implementation.
Examples of clients and partners:
• CPG / FMCG manufacturers• Retailers• Professional associations• Market research companies• Advertising and marketing agencies
Kairos Learning 01.1: Cosmetics April 20104 Kairos Learning 01.1: Cosmetics April 2010
5 Kairos Learning 01.1: Cosmetics April 2010
Kairos Consumers designed an independent study to take a close look atthe natural and organic market in the U.S. (Kairos Study #01). Areas of exploration included product segments (yogurt, fresh produce,and cosmetics), retailing, consumer profiles, purchasing factors, and trust.Findings from the Kairos Study, completed in April 2010, were publishedin a series of Kairos Learnings complete with consumer insights and analysis.
Kairos Study 01: Natural and Organic Market in the U.S. Kairos Learning 01.1: Cosmetics Kairos Learning 01.2: Fresh Produce Kairos Learning 01.3: Yogurt Kairos Learning 01.4: Retailing
To receive any of the Kairos Learnings or for more details regarding how Kairos Consumers could work with your company, please visit:
www.kairosconsumers.com
or contact us at:[email protected]
Ove
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Kairos Learning 01.1: Cosmetics April 20106
7 Kairos Learning 01.1: Cosmetics April 2010
Kairos Learning 01.1: Cosmetics
Kairos Learning 01.1: Cosmetics April 2010
Contents
• Objectives and Methodology• Product safety: What makes a product safe?• Ingredients: Do you look actively for “good” and “bad” ingredients? • Factors influencing cosmetics purchasing: Effectiveness vs. product claims• Packaging and labelling: How does a natural cosmetics product look? • Trust in organics: Do you trust the label when it says “organic”?• Summary
8 Kairos Learning 01.1: Cosmetics April 2010
This Kairos Learning focuses on Cosmetics and its objectives are:• To explore cosmetics purchasing factors• To gather input relating to in-store positioning, pricing, promotional material, packaging and product labeling • To determine perception of organic cosmetics and finally,• To measure the extent of consumer trust with regard to both product ingredients and certifications
Methodology:• Secondary research• Store audits in mass and specialized channels• Online focus group (time extended, with multimedia sharing capabilities) - Customized discussion guide outlined hot topics - Participants logged on to interact with moderator and one another over four days
SAMPLE QUESTION AND RESPONSE
Participants:19 females, primarily ages 35 - 45, based in the US
Cosmetics Objectives and Methodology
Technology platform developedand operated by 20/20 Research
Kairos Learning 01.1: Cosmetics April 20109
Product safety:What makes a product safe?
“Safe” cosmetics are: Known natural brands with expansive distribution “Free of ____” (parabens, dyes, chemicals) Products that friends recommend, but also: Premium
“I look on the Skin Deep cosmeticsdatabase. I also go with brands that I already
believe to be safe (Burt's Bees, Jason).”
- Focus group participant
“I look at the ingredients. I avoid parabensand other chemicals …I look to see if products
have been tested by independent labs andorganizations to deem it safe.”
- Focus group participant
• You are what you eat...makeup is different: Consumers who regularly purchase organic food generally place less value on buying organic in cosmetics
• Clearing house lacks: Participants did not come close to a consensus regarding a central body or certification for cosmetics products that equated to safety
• Results still matter: Vanity prevails over safety for the results-oriented cosmetics consumer
Insights & Conclusions
“I haven't actually verified that the moisturizersI use are safe. I depend on the reputation of
the company - such as skinCeuticals or NeoCutis.Because they are expensive and reputable,
I deem them as safe.”
- Focus group participant
10 Kairos Learning 01.1: Cosmetics April 2010
Ingredients:Do you look actively for “good” and “bad” ingredients?
“Bad” typically correlates to chemicals Participants express confidence in specific retailers and brands when discussing cosmetics with “good” ingredients Buying natural cosmetics or products “free of” certain ingredients has a positive emotional benefit for some consumers
surveyed
• Harm more promoted than good: Consumers show greater awareness of “bad” ingredients and less confidence in stating what “good” ingredients are
• It’s all in the name: Retailers and brands with credibility in the naturals arena already have the trust of consumers as product lines expand, suggesting an opportunity for organic additions
Insights & Conclusions
“Ingredients are very important, though it really depends how I feel about myself [in terms of] how strict I am [regarding ingredients]…
I can tell if the ingredients are “good” or “bad” only by what I know, and amconstantly doing research. So I could be wrong, but I go with what I’ve learned.”
- Focus group participant
“Parabens are bad. I guess I don’t know what are good ingredients!”
- Focus group participant
“I look to see what’s NOT there mostly. The more it says what it doesn’thave the better I feel. “
- Focus group participant
Kairos Learning 01.1: Cosmetics April 201011
Factors influencing cosmetics purchasing:Effectiveness vs. product claims
Factors driving cosmetics purchases, based on focus group responses
Packaging information and marketing claims made by eading organic cosmetics manufacturers
• Consumers show some ingredients awareness but claims requiring translation do not resonate• In skin care, correct trumps protect: Benefits many not equal results for the conventional cosmetics consumer considering organics; active ingredients remain the priority
Insights & Conclusions
12 Kairos Learning 01.1: Cosmetics April 2010
• “Natural” is artificial: Based on not only packaging perception but general consumer confidence in natural claims, the word “natural” remains a nebulous product descriptor rather than a premium branding element• Natural credibility comes with mainstream distribution: Trusted brands like Burt’s Bees, Aveda, Dr. Hauschka, Kiss My Face and
California Baby have prominent - rather than niche - shelf space
Insights & Conclusions
Packaging and labelling:How does a natural cosmetics product look?
“Basic” categorizes participants’ perception of both natural and organic cosmetics packaging Plants on packing = “good” natural (no chemicals) however Idea of all-natural as conveyed by packaging may also = ineffective
“I think natural cosmetics looks less “showy” than other more popular makeup brands. Typically there is some type of
plant on the label and maybe a recycled bottle or label.”
- Focus group participant
“When I think of natural cosmetics the three words that come to mind are: ineffective, cheap and not fashionable. I feel like they look hippyish - not sleek and cool like normal cosmetics.”
- Focus group participant
Kairos Learning 01.1: Cosmetics April 201013
Organics = naturalOrganics may have little added value or differentiation to consumers, particularly with regard to cosmetics versus food
• Certified organic cosmetics?: Participants tended to associate the USDA Organic label only with food, however...• Legitimacy of “organic” remains intact: Based on participant responses, certified organic classification has credibility, although education is needed
Insights & Conclusions
Trust in organics:Do you trust the label when it says “organic”?
“[I don’t pay attention] but I do pay attention to the logos that represent that it wasn’t tested on animals
and that it is made from recycled materials.”
- Focus group participant
“I think organic = natural. however there is a market for the word organic and it probably adds value if the
word is printed on the product.”
- Focus group participant
“I do trust when a product says ‘organic’ more than if it said “natural.“… I would recognize an organic product
by the word “organic” or a stamp of approval.”
- Focus group participant
Organics > naturalOther participants indicated that originof ingredients and certificationsdifferentiate - and add value - to organics
Organic must competeEnvironmental claims and animal cruelty vie with organic claims for consumer trust
14 Kairos Learning 01.1: Cosmetics April 2010
Summary
Effectiveness matters, even to organic consumers:This claim in the most blatant sense does not figure prominently in organic skin care product information, with claimsinstead leaning toward restoration and balance. Consumers who habitually buy organic food products seek cosmetics that claim to work, particularly with regard to skin care
Premium mindset calls for premium product:For organic and natural cosmetics to resonate with premium consumers, premium price points must be justified bynot only ingredients but packaging and effectiveness claims
Safe, good, and certified are not straightforward:Definitions of what constitutes product safety, “good” ingredients and organic certification vary significantly
About this Kairos StudyParticipants were able to interact with the moderator as well as with one another at their own convenience and from the comfort of their own preferred setting, allowing for greater depth in responses. In addition to cost savings andtime savings, an online consumer study allowed for innovative techniques (such as logo comparison and image sharing) and resulted in more content than possible during a conventional, face-to-face focus group.
Technology platform developed and operated by 20/20 Research
Kairos Learning 01.1: Cosmetics April 201015
About us
Kairos Learning 01.1: Cosmetics April 2010
Kairos Learning 01.1: Cosmetics April 201016 Kairos Learning 01.1: Cosmetics April 2010
17 Kairos Learning 01.1: Cosmetics April 2010
Betsy HoagProfessional Background
• JWT - Strategic Planning• Hamilton Communications - Account Management• Euromonitor International - Consulting• Chicago White Sox - Marketing
Academic Qualifications • MBA in International Management, Thunderbird• BA in French and English, Vanderbilt University
Com
pany
:Ka
iros
Con
sum
ers
Kairos Consumers is a consumer research unit founded by Betsy Hoag and Katerina Makatouni, who have a combined 20 years of experience in the areas of market research, consumer research, marketing and strategic planning.
Katerina MakatouniProfessional Background
• Euromonitor International - Consulting• Euromonitor International - IMIS• Organic Monitor - Research Analyst• European Commission
Academic Qualifications• PhD in Consumer Psychology, Reading University• MA in Marketing Management• BA in European Studies and Political Science
Kairos Learning 01.1: Cosmetics April 201018
Contact us
Kairos Consumers 1836 W. Superior, Unit 2Chicago, IL 60622USA
Website: www.kairosconsumers.com
Contact: Katerina MakatouniTel: +1 312 576 5184Skype: katerinamakatouniEmail: [email protected]
Contact: Betsy HoagTel: +1 773 203 3356Skype: elizabeth.hoagEmail: [email protected]