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111 Confidential P&G Proprietary Business Information Unpublished Copyright P&G 2014 Some data is masked for confidentiality Target Hair Color Case Competition.

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Presentation on theme: "111 Confidential P&G Proprietary Business Information Unpublished Copyright P&G 2014 Some data is masked for confidentiality Target Hair Color Case Competition."— Presentation transcript:

1 111 Confidential P&G Proprietary Business Information Unpublished Copyright P&G 2014 Some data is masked for confidentiality Target Hair Color Case Competition

2 222 Confidential P&G Proprietary Business Information Unpublished Copyright P&G 2014 Some data is masked for confidentiality 1. Nationally, the Boxed Hair Color business is declining. Nationally: -1.3% during the last 52 weeks Target: -2.1% during the last 52 weeks 2. Target has historically won in beauty categories but dollars are leaking to Salons, e-Salons, and the emerging Dollar Channel. 3. Targets website capabilities have lagged those of its top competitors: Amazon.com and Walmart.com. 4. Additionally, Target is experiencing reduced store traffic due to the Holiday 2013 Credit Card Data Breach. Please refer to the attached Kantar article for more detail. Total US Color sales declined 4% from Boomers leaving faster than Millennials entering; Leakage to Salon Hair Color Background: State of the business 2013

3 333 Confidential P&G Proprietary Business Information Unpublished Copyright P&G 2014 Some data is masked for confidentiality Hair Color Background: Declined guest count Dollar sales are driven by the following 4 buckets: During the latest 52 weeks, hair color guest count has been down -3% and is declining 3x faster than the total beauty category. If guest count continues to decline by -3%, total sales are also at serious risk of declining at an increased rate. Guest Count Trips/ Guest Units/Trip Average Retail Price

4 444 Confidential P&G Proprietary Business Information Unpublished Copyright P&G 2014 Some data is masked for confidentiality Hair Color Background: Barriers to entry 1. Damaging Hair2. Selecting Wrong Color3. Inconvenience Im afraid 35% of people select wrong color Im overwhelmed Research has shown that the following are major barriers for the category:

5 555 Confidential P&G Proprietary Business Information Unpublished Copyright P&G 2014 Some data is masked for confidentiality Hair Color Objective: Return the Category to Growth How would you help Target understand how to bring shoppers back into their hair color aisle? Thought starters on ways to impact the store: Think about ways to leverage/enhance: (1)target.com (2) social media (3) mobile apps (4)out-of-store marketing (5) in-store education/marketing/shelving The clock is ticking and guest counts are continuing to decline due to: shifts to salon, e-salon, competitor activity, and shoppers simply no longer coloring their hair.

6 666 Confidential P&G Proprietary Business Information Unpublished Copyright P&G 2014 Some data is masked for confidentiality Appendix: Targets Guest Profile 40 years old Household income of $65,000; Over 33% above $75,000 36% have children at home 65% have pets at home 57% completed college 78% are women 80% are married

7 777 Confidential P&G Proprietary Business Information Unpublished Copyright P&G 2014 Some data is masked for confidentiality Appendix: Hair Color Shoppers She quickly reaching her end results, not so much the means. With end color being her sole concern, shes an ideal shopper to focus on increasing frequency. She prioritizes perfect results before efficiency. Shes willing to put forth the effort to look her absolute best. Regimen is her best friend. She wants the end result but also takes time to stop and smell the roses. She values the journey as much as the end result and is willing to try new products. B A Sensorial Sally Efficient EmilyFlawless Fiona B A

8 888 Confidential P&G Proprietary Business Information Unpublished Copyright P&G 2014 Some data is masked for confidentiality Appendix: Hair Color & Non-Hair Color Shoppers Avg. Age US

9 999 Confidential P&G Proprietary Business Information Unpublished Copyright P&G 2014 Some data is masked for confidentiality Appendix: Hair Colors Competitive Landscape

10 10 Confidential P&G Proprietary Business Information Unpublished Copyright P&G 2014 Some data is masked for confidentiality Appendix: Targets Competitive Landscape Wal-Mart- Save Money, Live Better Pro: Value perception Walmart.com platform Con: Shopability of shelf is not best in class Target- Expect more pay less Pro: In-store shopping experience In-Store beauty concierge in 500 stores Product differentiation with special packs and in-aisle color wheel Con: Target.com High price perception Dollar General- Save time. Save Money. Every day Pro: Value perception Relatively new to the market- room to grow Con: Shopping experience Limited selection Salons- Pro: Trust in stylist selecting the right color Perception of less damaging color Convenience Con: Price- can be > 10x more expensive than boxed color

11 11 Confidential P&G Proprietary Business Information Unpublished Copyright P&G 2014 Some data is masked for confidentiality Appendix: Guest Barriers Barriers for Non-Users Frustrations of Current Colorers Source: Ipsos 2013

12 12 Confidential P&G Proprietary Business Information Unpublished Copyright P&G 2014 Some data is masked for confidentiality Appendix: Hair Color 101 Color Segmentation by Level Based on the Color Length 1-3 WASHES TEMPORARY 24 WASHES DEMI PERMANENT 6-8 WASHES SEMI PERMANENT BLEACH

13 13 Confidential P&G Proprietary Business Information Unpublished Copyright P&G 2014 Some data is masked for confidentiality Appendix: Hair Color Black 3 Dark Brown 4 Medium Brown 5 Light Brown 6 Dark Blonde 7 Medium Blonde 8 Light Blonde 9 Very Light Blonde 10 Ivory 11 Purely Blonde 12 Special Blonde /0 Natural Colour /0Χ Natural X /1 Ash /2 Mat /dull /3 Gold /4 copper and/or red /5 Mahogany, deep brown red /6 Violet /7 Chocolate (brown) /8 Pearl (silver) /9 Ash Shade = Level & Tone(s) LevelTone 10 Permanents can lighten non-colored hair up to 2 stages lighter Hair lighteners and highlighting products up to 4 stages of lightening Grey will show the tone you are adding. It has no colour itself and once dyed will look lighter and more vibrant.

14 14 Confidential P&G Proprietary Business Information Unpublished Copyright P&G 2014 Some data is masked for confidentiality Stages of Lightening Hair Dark Brown Medium Brown Light Brown Dark Blonde Existing color ToneDescriptorNeutralises 1Blue AshOrange 2Green AshRed 3YellowViolet 4OrangeBlue 5RedGreen 6VioletYellow Appendix: Hair Color 101


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