Professional Certificate in Marketing (Level 4)

Transcription

1 Professional Certificate in Marketing (Level 4) 521 Assessing the Marketing Environment Case Study June 2015 and September 2015 Men s Toiletries, with a focus on Procter and Gamble The Chartered Institute of Marketing 2015

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3 Assessing the Marketing Environment Case Study Guidance notes for candidates regarding the prepared analysis The examination is designed to assess knowledge and understanding of the Assessing the Marketing Environment syllabus in the context of the relevant case study. The examiners will be marking candidates scripts on the basis of the tasks set. Candidates are advised to pay particular attention to the mark allocation on the examination paper and plan their time accordingly. Candidates should familiarise themselves thoroughly with the case study and be prepared to follow closely the instructions given to them on the examination day. Candidates are advised not to waste valuable time collecting unnecessary data. Case studies are based upon reallife situations and all the information about the chosen organisation is contained within the case study. No useful purpose will be served by contacting companies in the industry and candidates are strictly instructed not to do so, as it may cause unnecessary confusion. As in real life, anomalies may be found in the information provided within this case study. Please state any assumptions, where necessary, when answering tasks. The Chartered Institute of Marketing is not in a position to answer queries on case study data. Candidates are tested on their overall understanding of the case study and its key issues, not on minor details. As part of the preparation for the examination, candidates will need to carry out a detailed analysis of the case study material ahead of the examination. Candidates will find that the time available during the examination is sufficient to answer all the tasks, but only if detailed analysis has been undertaken beforehand. When compiling their analyses, candidates should only use the information found within the case study, supported by their knowledge and understanding of the syllabus. The copying of pre-prepared group answers, including those written by consultants/tutors, or by any third party, is strictly forbidden and will be penalised by failure. The tasks will demand analysis in the examination itself and individually composed answers are required in order to pass. Candidates will then need to condense their analysis into both a PESTEL and SWOT analysis (a maximum of FOUR sides of A4, no smaller than font size 11. No other models should be included in these analyses. The content of tables, models or diagrams must be in a minimum of font size 8). The analyses should be numbered for ease of reference when answering the examination tasks. Candidates must hole-punch and staple their analysis in the top left hand corner. They must write their CIM membership number and examination centre name on the top of the right hand corner of each page of the analysis. It should then be attached to the answer book on completion of their examination, using the treasury tag provided. Although no marks are awarded for the analysis itself, candidates will be awarded marks for how the analysis is used to answer the tasks set. Candidates are advised not to repeat or copy the analysis summary when answering the tasks. It is important that candidates refer the examiner to the analysis summary, where and when appropriate, when answering the tasks. Page 3

4 Candidates are NOT PERMITTED to take in the downloaded case study or any other notes. Candidates are only permitted to take their analysis into the examination room. The invigilator will issue candidates with a clean copy of the case study and the examination paper. Candidates may not attach any additional information to their answer book. Any attempt to introduce such additional material will result in the candidate s answer book being declared null and void. The Chartered Institute of Marketing reserves the right not to mark any submission that does not comply with these guidelines. Important Notice The following data has been based on real-life organisations, but details have been changed for assessment purposes and do not necessarily reflect current management practices of the industries or the views and opinions of The Chartered Institute of Marketing. Figures used in tables may differ as they have been compiled from different sources, using a range of criteria. Candidates are strictly instructed NOT to contact individuals or organisations mentioned in the case study or any other organisations in the industry. Copies of the case study can be downloaded from the CIM student website The Chartered Institute of Marketing All rights reserved. This assessment, in full or in part, cannot be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without prior written permission of The Chartered Institute of Marketing. Page 4

5 ASSESSING THE MARKETING ENVIRONMENT CASE STUDY Preparation In preparation for the examination you will need to analyse the Men s Toiletries case study material provided. You will be given a clean copy of the case study on the day of the examination, but you MUST bring your analysis with you. Your written analysis MUST NOT exceed FOUR A4 sides and MUST include your CIM membership number on each page. The written analysis MUST be submitted as an appendix on completion of the examination and attached with a treasury tag to your answer book. Page 5

6 Men s Toiletries, with a focus on Procter and Gamble The Company Legal form Procter and Gamble (P&G) is an American multinational consumer goods and healthcare products company, based in Cincinnati, Ohio, in the United States. It is one of the largest consumer goods companies in the world. Founded in 1837, it now owns more than 300 brands, which are sold in over 180 countries across the world. Well-known brands available in the UK include Gillette, Old Spice and Head & Shoulders. P&G is a public limited company listed on the New York Stock Exchange. In 2012, P&G recorded US$ billion in sales. Fortune magazine awarded P&G the top spot on its list of Global Top Companies for Leaders, and ranked the company at fifteenth place on the World's Most Admired Companies list. As of July 1, 2011, P&G structured itself into two Global Business Units Beauty and Grooming, and Household Care. 26 of P&G's brands have more than US$ 1 billion in net annual sales, according to its 2011 Annual Report. Four of these Gillette, Head & Shoulders, Olay and Wella are in the Men s Toiletries sector. Brief history and key features William Procter, a candle-maker, and James Gamble, a soap-maker, emigrated from England and Ireland respectively. They settled in Cincinnati initially and met when they married sisters. Their father-in-law persuaded his new sons-in-law to become business partners and, on October 31, 1837, as a result of the suggestion, Procter and Gamble was created. During the American Civil War, the company won contracts to supply the Union Army with soap and candles. P&G began a profit-sharing programme for the company's workforce in By giving the workers a stake in the company, the management correctly assumed that they would be less likely to go on strike. The company expanded and built factories across the United States. P&G also began to diversify its products and advertise more widely: as radio became more popular in the 1920s and 1930s, the company sponsored a number of programmes which, as a result, often became known as soap operas. The company moved into other countries, including the UK in 1930, and introduced numerous new products and brand names over time. The company introduced Tide laundry detergent in 1946 and Prell shampoo in In 1955, Procter and Gamble began selling the first toothpaste to contain fluoride, known as Crest. Procter and Gamble acquired a number of other companies that diversified its product line and significantly increased profits. These acquisitions included Folgers Coffee, Norwich Eaton Pharmaceuticals (the makers of Pepto-Bismol), Richardson-Vicks, Noxell (Noxzema), Shulton's Old Spice, Max Factor, and the Iams Company, among others. In January 2005, P&G announced the acquisition of Gillette, forming the largest consumer goods company and pushing Unilever into second place. This added brands such as Gillette razors, Duracell, Braun, and Oral-B. In 2008, P&G branched out into the record business with its sponsorship of Tag Records, as an endorsement for TAG Body Spray. Page 6

7 P&G exited the food business in 2012 when it sold its Pringles snack food business to Kellogg's for US$ 2.75 billion, after the US$ 2.35 billion deal with former suitor Diamond Foods fell short. The company had previously sold Jif peanut butter and Folgers coffee in separate transactions to Smucker's. P&G s stated strategic purpose, according to its Annual Report and Accounts, is to: provide branded products and services of superior quality and value that improve the lives of the world s consumers, now and for generations to come. As a result, consumers will reward us with leadership sales, profit and value creation, allowing our people, our shareholders and the communities in which we live and work to prosper. P&G s Health and Beauty division saw its UK operating profit decline by more than 65% from 79.4 million in 2011 to 27.1 million in According to the company s Annual Report for 2012, this was due to weaker growth in developed markets, increased competition and weaker consumer demand. Globally, P&G reported a 3% increase in group turnover from US$81.1 billion in 2011 to US$83.7 billion in 2012, driven by growth in developing markets. The Beauty and Grooming segments, which contain brands offering men s toiletries, contributed 24% and 10% of total net sales respectively. Social responsibility and sustainability Doing the right thing is the foundation of Procter and Gamble s Purpose, Values, and Principles. This includes: paying competitive wages, treating employees and those of their suppliers with respect, preventing conflicts of interest, ensuring consumer privacy and maintaining financial stewardship. Procter and Gamble see sustainability as being about delighting their consumers with innovative products and services that are better for the environment. Other social aims include providing health and hygiene education to children around the world and responding to natural disasters. As the world s largest consumer products company, it recognises its responsibility to do the right thing and create change through innovation. Procter and Gamble has key aims regarding environmental sustainability and has focused its efforts on conservation of resources through increasing the use of sustainably sourced, renewable materials and renewable energy in products and operations; for example, by using less energy, water, and materials when products are manufactured, and requiring fewer resources when they are used in the home. In addition to efforts to conserve energy, it uses a portfolio approach to determine the best energy solutions for operations. Wind, solar, biomass, and geothermal are important aspects of Procter and Gamble s sustainability programme. The company s social efforts include both key policies and practices, as well as programmes that support local communities. These programmes address two key areas for people around the world: Comforts of Home, where Procter and Gamble has partnered with Habitat for Humanity in its efforts to provide decent, safe and affordable places to live for families in need, by sponsoring home builds around the world. Thousands of its employees have helped build and clean homes for first-time owners, to provide a home for their families. Health and Hygiene, where Procter and Gamble s Children s Safe Drinking Water Program (CSDW) uses powdered water-purifying technology to turn dirty, potentially Page 7

8 deadly water into clean, drinkable water. To date, CSDW has reached more than 70 countries and saved tens of thousands of lives. Through this work, Procter and Gamble aims to focus core competencies to address critical social needs, such as those outlined in the United Nations Millennium Goals focused on housing and sanitation, as well as child and maternal health. Marketing activities Procter and Gamble (P&G) increased its above-the-line advertising spend on men s toiletries by almost 250% from 960,000 in 2011 to 3.3 million in P&G predominantly used television and press advertising, which accounted for 39% and 35% of the company s advertising spend for 2012, respectively. The shaving brand, Gillette, dominated P&G s advertising expenditure on men s toiletries. In April 2013, P&G announced a marketing partnership with Formula 1 team Vodafone McLaren Mercedes, for its Gillette brand, reinforcing its associations with F1 racing. P&G s Head & Shoulders brand also sponsors McLaren driver Jenson Button. In the same month, Old Spice launched a new advertising campaign to mark the launch of its new line of scented soap bars. The advert was inspired by soap adverts, with jingles from the 1980s and 1990s showing how men can wash their bodies in a manly way. In March 2013, P&G teamed up with the UK social entertainment company We R Interactive to launch an online football game for its grooming brand Gillette. In September 2012 P&G teamed up with Google to develop a football-focused YouTube channel, Gillette Football Club, which sponsors football on YouTube in EMEA. In addition to complementary products, Gillette s primary focus has been on the extension of its core business and the marketing programmes that support it. Going beyond simple brand advertising, many of the initiatives and activities introduced by Gillette created a synergy between product development and marketing strategy. For example, building on the success of the Fusion and Fusion Power razor and blades, Gillette released the Fusion Power Phantom (Stealth in the United Kingdom) in February The Phantom razor featured a redesigned handle and a darker colour scheme than the original Fusion Power. On July 14, 2010, Old Spice launched the fastest growing online viral video campaign ever, garnering 6.7 million views after 24 hours, ballooning to over 23 million views after 36 hours. Old Spice's agency created a bathroom set in Portland, Oregon, and had its TV commercial star, Isaiah Mustafa, reply to 186 online comments and questions from websites like Twitter, Facebook, Reddit, Digg and others. The campaign ran for 3 days. In March 2013, Old Spice began its campaign starring Mr Wolfdog, a wolfdog with an electronic collar that allowed him to speak to humans, acting as the marketing director of Old Spice. In addition to making videos to promote the new Old Spice Wild Collection, he conducted live interviews over YouTube to get fans to write, create and submit ads, in addition to appearing on Xbox Live on March 12, Market structure and key competition New products have an increasingly important role to play in an industry where traditional staples show little sign of breaking new ground. Latest research from Mintel on the European men s grooming market shows that while the market for shaving products and Page 8

9 razors in Europe s largest economies has remained largely stagnant, sales of skincare products are booming up an impressive 45% from 289 million in 2005 to 420 million in Germany and Spain have seen the greatest growth in male skincare sales, with five-year increases of 100% and 76%, respectively. No other sectors within the grooming market have registered the same outstanding performance. Per capita spend on male grooming products is highest in Spain, at 61.7, driven by the relatively small size of Spain s male population and their infatuation with fragrances. Italy has the lowest per capita spend, amounting to The men s toiletries market saw a strong increase in value sales (6.9%) in 2012, driven by high profile product development from Dove Men + Care, among others, and innovative advertising campaigns. However, the market saw minimal growth in 2013, with just 0.2% estimated annual growth. Although the level of product innovation is set to match that seen in previous years, smart shopping behaviours, such as stocking up during times of promotional offer, are limiting value sales growth. Fashion trends have also played a part, with men taking a relaxed attitude to grooming. Beards are becoming increasingly popular, resulting in the proportion of men using shaving preparations decreasing. P&G products and product development Head & Shoulders Procter and Gamble researchers started making a new anti-dandruff shampoo in Nearly a decade of research went into making a new formula, which introduced pyrithione zinc into the shampoo. It was first introduced to the US market in November 1961 as a bluegreen shampoo formula. There are now nine different Head & Shoulders varieties for varying hair types, and the formula has since changed colour to white. The Head & Shoulders range of products has been extended, with the addition of 2in1 shampoos to provide both anti-dandruff and conditioning benefits. Hair Endurance 2in1 Anti-Dandruff Shampoo and Conditioner has been designed to keep hair looking full, thick and conditioned while addressing the causes of dandruff. Gillette Gillette Sensor was first released in 1990 and was the first razor to have spring-loaded blades, helping to prevent cuts and allowing for a closer shave. Sensor Excel followed in 1993, featuring Microfins, which were said to raise facial hairs, making for a closer shave. Mach3 was the first three-blade razor, introduced in 1998, featuring five improved microfins, spring blades and a pivoting head. It has since been improved with Mach3 Turbo, with ten microfins, Mach3 Turbo Champion and M3Power, a battery-powered version. Gillette Fusion is a five-bladed razor released in The Fusion has five blades on the front, and a single sixth blade on the rear for precision trimming. Its marketing campaign was fronted by the sports stars Roger Federer, Thierry Henry and Tiger Woods. Gillette Fusion Power is a motorised version of the Fusion. Fusion ProGlide and Fusion ProGlide Power were launched on June 6, 2010 in North America. The ProGlide series features reengineered blades with edges that are thinner than Fusion and are finished with low- Page 9

10 resistance coating which, the company claims, allows the blades to glide more easily through hair. Gillette Fusion ProGlide Clear Shave Gel is a transparent non-foaming gel that allows the user to see how to shave and edge accurately. It has a rich formula with advanced lubricants for incredible glide, comfort and smoothness, working equally well on face and body. Gillette s product range also offers: Face Wash, Moisturiser, Cooling & Revitalising Balms, aftershave lotions and six different varieties of deodorant available variously in spray, stick and roll-on formats. Old Spice Procter and Gamble manufactures the Old Spice range, having acquired the brand in 1990 from Shulton, Inc. The first Old Spice product, introduced in 1937, was intended for women. Old Spice for men followed in Old Spice's buoy-shaped bottle cologne has been its staple product, available in its original scent as well as newer Pure Sport. In 2006, Old Spice introduced an all-new fragrance, OS Signature, which won the magazine FHM's 2006 Grooming Award for Best Sporty Fragrance. Old Spice Red Zone products include a Scratch-and-sniff version of the Signature fragrance. By 2010 Old Spice had three main lines of grooming products, each featuring a variety of products and scents. High Endurance is promoted as a basic grooming line, Classic is aimed at people who prefer the original scents of Old Spice, and Red Zone is aimed as a higher-end line, including washes and sprays with a time-released scent system. Wella Wella Shockwaves Ultra Strong Tuff Stuff Gel holds up even in demanding situations and offers long-lasting sweat- and heat- resistant style with natural shine. The pack features the Facebook address for the brand. The Market Main players and competitors Alliance Boots Alliance Boots was formed in 2006, following a merger between Alliance UniChem plc and Boots Group plc. The pharmacy-led health and beauty retailer Boots operates more than 3,100 stores in the UK, of which over 3,000 have a pharmacy, as well as 554 stores in the Republic of Ireland, the Netherlands, Lithuania and Thailand. At 31 March 2013, the company employed over 108,000 people in 25 countries. Alliance Boots group revenue decreased by 2.6%, from 23 billion in 2012 to 22.4 billion in 2013 due to the strength of sterling against the company s other operating currencies. The Health and Beauty division saw its revenue decline by 2.5%, from 7.7 billion in 2012 to 7.5 billion in 2013, largely due to branded medicines being superseded by lower priced generic medicines after their patents expired. Boots offers men s toiletries under the own- Page 10

11 label brands No7, Botanics, Boots Essential, Boots Therapy (shower gel), Boots Max (shaving products), Boots Anti-Dandruff (shampoo) and Boots Style Works (hair styling). Estée Lauder Estée Lauder, founded in 1946 by Estée Lauder and her husband Joseph Lauder, has been listed on the New York Stock Exchange since 1995, but the Lauder family continues to hold the majority share. Estée Lauder offers men s toiletries under the brands Clinique Skin Supplies for Men, Aramis, Lab Series, Aveda Men, Tom Ford and Ermenegildo Zegna Uomo. In addition to fragrances, Aramis also sells shaving preparation products, including shaving soap, hair care and styling products, deodorants and bath soap. Estée Lauder Cosmetics Ltd, the parent company s UK and Republic of Ireland subsidiary, reported sales growth of 6.1%, from million in 2011 to million in According to the company s annual report, this was driven by increased sales activity and the positive impact of cost savings throughout the year. L Oréal The L'Oréal Group is the world's largest cosmetics and beauty company. It owns 27 global beauty brands and operates in 130 countries. Its men s toiletries brands include L Oréal Men Expert, L Oréal Studio, Garnier, Biotherm Homme, Giorgio Armani, Vichy Homme, Kieh s and The Body Shop for Men. L Oréal UK reported that its revenue increased by 2.3%, from million in 2010 to million in Operating profit decreased by 1%, from million in 2010 to million in 2011, while overall profits declined by 4.5% to 72.5 million. L Oréal describes its mission as offering all women and men worldwide the best of cosmetics innovation in terms of quality, efficacy and safety. It pursues this goal by meeting the infinite diversity of beauty needs and desires all over the world. Unilever Unilever is an Anglo Dutch multinational consumer goods company. Its products include foods, beverages, cleaning agents and personal care products. It is the world's third-largest consumer goods company, measured by 2011 revenues (after Procter and Gamble and Nestlé) and the world's largest manufacturer of ice cream. One of the oldest multinational companies, it currently has operations in over 100 countries. Unilever owns over 400 brands, with 25 of its largest brands accounting for over 70% of total sales. Unilever sells men s toiletries under several brands, including Lynx, Dove, Radox, Sure, Vaseline, Brylcreem, VO5, BRUT and Toni & Guy. Unilever s global group turnover increased by 10.5% between 2011 and 2012, from 46.5 billion to 51.3 billion. The Personal Care unit saw strong growth of 17%, driven by innovation, the launch of Unilever s brands into new markets, and a strong performance from acquired brands. Page 11

12 Social trends Men continued to take a more relaxed attitude to grooming in 2013, with a less polished image and beards becoming more popular. Half of men do not shave every day, but this figure drops to 36% among men aged 55 and over, indicating that older men prefer a cleanshaven look. However the increasing male population in this age group will not necessarily help the shaving-preparation sector, as older men are currently the least likely to use these products. Fewer men felt the need to dress to impress, dropping from 42% in 2012 to just under a third (32%) in Many high profile male celebrities have been sporting a more casual grooming style during this time, which may be an influencing factor. Men under the age of 35 are the most likely to want to dress to impress and are accordingly more likely to complement this approach through using grooming products. Those living in Inner and Greater London are more likely to style their hair; only 15% of Londoners agree with the statement I tend not to style my hair, compared to 35% in the East and West Midlands. Research indicates that London is a city which is experimental with fashion, and its residents are likely to be more comfortable experimenting with different looks and hairstyles. Six in ten male toiletries users feel being well-groomed gives them a confidence boost. Highearners think they look more professional when well-groomed, with those earning over 50,000 per annum 10% more likely to link such an appearance with looking professional than those in lower earnings brackets. Nearly half of year-old male toiletries users like to experiment with new looks, while 29% take grooming inspiration from celebrities or sports stars. Men of this age are most likely to have a beard/stubble (42% compared with an average among all ages of 28%). Consumer attitudes and trends in this market Men s grooming is attracting more attention, but still made up only 8% of the overall global beauty and personal care market in Strong growth of over 7% in 2012 thanks to good media coverage, wider adoption of male-specific products and greater availability has kept the category in the spotlight. Men s toiletries caught up with men s shaving, and sales of the former were expected to surpass those of the latter for the first time in Men s skin care is the fastest growing category within men s grooming, with an increasing number of men using male-specific products to take care of their skin. Traditionally, razors and blades has been the dominant category within men s grooming, contributing nearly 40% of total men s grooming revenue in 2012 and growing by 8% globally the same year. Growth rates and sales are slowing in Western Europe and North America, partly due to the on-going stubble trend on the one hand and the rising cost of shaving on the other. However, men s razors and blades continue to benefit from emerging markets like Russia, India and Brazil. Gillette dominates the market, commanding a more than 50% share of the category globally, thus acting as a significant barrier to entry. Both Unilever s Axe and Dove brands have been extended into men s shaving. Axe has collaborated with both Schick and Philips Norelco to introduce triple-blade razors in refill as well as disposable options, and an electric Page 12

13 range with interchangeable heads that can trim, style and shave. It has also introduced a shaving gel, and a hydrator which acts as a 2-in-1 post-shave gel and moisturiser, aiming to tap into the growing convenience trend. Men s deodorants remained the second biggest category within men s grooming in 2012, achieving the same 8% rate of growth as men s razors and blades. Manufacturers of deodorants over the past five years have increasingly aligned them with fragrances, launching body spray versions of their most popular scents. The extension of deodorant brands into men s shaving can be seen as a natural progression in providing a more complete regime for their male consumers. Men s shaving brands like Gillette and Schick have been searching for new ways to find a competitive edge via the introduction of 3-in-1 shaving systems and clear shaving gels, with Gillette also filing a body shaving patent. In the UK, hygiene staples such as deodorant and shampoos appeal to the highest proportion of men, with over nine in ten using these products. Skincare products have seen the most growth in usage year-on-year, perhaps partly attributable to the harsh winter weather of 2012/13. Facial moisturisers have also seen an increase, with two thirds of men now using these products. Younger men in particular are driving this trend, with 85% of men aged now using a moisturiser. The proportion of men using shaving preparations fell by 4% between 2012 and 2013, with 28% of men growing a beard over this period. Hair colourants were used by 4% more men during the same 12 months, but only 2% of men aged 55 and over used colourants, compared to three in ten of those aged under 35. Three in four men use deodorant once a day or more, although older men tend to apply less often. With the number of men aged 55 and over increasing, this may help to explain a slight fall in value sales for this category. Hair styling products are used once a day by 16% of men, rising to 22% amongst those who work full-time, suggesting an increased interest in grooming for those looking to have a professional impact. Marketing activities of competition Advertising spend of the main men s toiletries retailers peaked in 2010 at 38.6 million, and then declined to 30.2 million in 2012, a contributing factor to sales virtually stalling at only 0.2% growth overall. Advertising spend in 2013 was on course to match the 2012 level, with 19.4 million spent in the first eight months. Unilever still accounts for 63% of toiletries advertising spend, despite its spend falling by a quarter from 2011 to The fact that in the first eight months of 2013 Unilever spent nearly as much on advertising as in the whole of 2012 reveals its individualistic and somewhat enigmatic approach to this marketing discipline. Unilever also led new product development in 2012, with new product launches from Lynx and Dove Men + Care. Lynx s advertising campaign, in support of its Apollo range, centred around a competition to win an astronaut training course and trip to space. P&G saw one of the biggest annual increases in advertising spend in 2012, spending over 3 million compared to under 1 million in P&G sponsored the London Olympics in 2012, with a multi-platform campaign consisting of TV, print, PR and online activity. Page 13

14 TV advertising takes the largest proportion of total advertising spend, 72% in 2012 and 71% in the first eight months of Both the Lynx Apollo and Dove Men + Care were widely promoted on TV during Retail value sales of the Dove Men + Care range increased by 33% from 2012 to 2013, thanks to Unilever s high promotional investment. Press advertising has taken the second highest share of advertising spend in recent years, although in 2013 the indications were that this would be overtaken by cinema screen advertising for the first time. Internet advertising spend, while still at low levels compared with other platforms, has increased by 55.4% over the five years to Technology and innovation More than half of men express little or no interest in trying new products if they were to become available. Innovations such as body moisturisers with skin healing ingredients, or hair styling products to help prevent hair loss, appeal to only 18% and 16% of men, respectively. However, men who already use a wide range of toiletries show greater interest. So men who do not use any products are likely to keep it that way, while growth and expansion is most likely from those already well engaged with the market. The innovation most likely to interest men who currently use ten or more toiletry products is the aforementioned body moisturiser with skin-healing properties for post-sports use. Only 30% of those who suffer from hair thinning or loss express interest in hair styling products that could help prevent their condition, perhaps a surprisingly small proportion. Hair transplants remain an expensive option for men, and are not always seen to be successful, so prevention rather than cure seems to be a more promising area to continue exploring. Some 17% of male toiletries users express an interest in personal care products carrying more masculine fragrances. Within this overall amount, men who live in large households and/or have young children show the greatest interest. Users interested in male make-up remain relatively few. Some 6% are interested in make-up to hide blemishes and dark circles, while 3% are interested in eye-enhancing products. A slightly higher proportion, 9%, is interested in a clear matt nail product to keep nails neat and healthy, rising to 15% among year-olds. External economic issues While the male population is growing, creating a bigger consumer base for men s toiletries, the age structure of this growing population presents more mixed challenges. The UK male population over 55 is set to increase, while younger age groups are set to decrease: over 55s are set to outnumber men aged by 642,000 in Many newer products are consumed largely by these younger men, while traditional deodorants, shampoos, shower gels and shaving preparations are the only products to be used by over half of men aged 55 and over. Introducing newer products to older men remains difficult, but will be increasingly important. The 45% increase in male unemployment from 2008 to 2013 created a tougher environment for men s toiletries, as grooming was and is seen as most important by those who feel the need to maintain a professional image. There being fewer men in the workplace has led to flat sales, although with unemployment set to decline over the next five years this trend may be positively affected. Disposable income has grown slowly over the past five years, increasing by 257 billion in total from 2008 to 2013, as the UK recovers from economic crisis. The speed of growth is Page 14

15 set to gather pace over the next five years, with higher disposable incomes providing more money to spend in the discretionary male toiletries sector, and the potential to trade up to products with new and added benefits. Page 15

16 Men s Toiletries, with a focus on Procter and Gamble Appendix 1 Market size, forecast and share Growth stalls in 2013 Men's Toiletries UK October 2013 Market Size and Forecast UK retail value sales of men s toiletries, at current and constant 2013 prices, Total Index % annual change m at 2013 prices Index % annual change m n/a n/a (est) (fore) (fore) (fore) (fore) (fore) Source: Based on IRI/Mintel Men's Toiletries, UK, October 2013 Page 16

17 Appendix 2 Lynx remains market leader Men's Toiletries UK October 2013 Market Share Brand value shares in men s toiletries, years ending July 2012 and 2013 Year ending July 2012 Year ending July 2013 % change m % share m % share Lynx (Unilever) Nivea (Beiersdorf) Sure (Unilever) Gillette (P&G) L Oréal Right Guard (Schwarzkopf & Henkel) Dove Men + Care (Unilever) Own-label Adidas (Coty) Other Total Source: Based on IRI/Mintel Men's Toiletries, UK, October 2013 Page 17

18 Appendix 3 Attitudes towards appearance and grooming Men continue with a relaxed attitude to grooming Attitudes towards appearance, July 2012 and July 2013 Base: 1,000 male internet users aged 16+ (2012 and 2013) Thinking generally about appearance, which of the following statements, if any, apply to you? Select all that apply. Any Well Groomed I prefer to be clean-shaven % I always keep my nails/cuticles neat and tidy It's really important to me that my hair looks good I don't like people touching my hair I always dress to impress Any relaxed I don t shave every day I don't feel I need to dress to impress I tend not to style my hair I have a beard/stubble I don't have to be clean shaven to look professional None of these Source: Based on IRI/Mintel Men's Toiletries, UK, October 2013 Page 18

19 Professional Certificate in Marketing: Grade Descriptors Level 4 This grade is given for Grade A work that meets all of the assessment criteria at Certificate level to secure at least 70% and demonstrates a candidate s ability to: Concept 40% Application 30% Evaluation 20% develop appropriate research strategies for secondary research selectively identify valid and relevant information from a wide range of relevant sources for the discipline evidence comprehensive knowledge and understanding of the marketing discipline at Certificate level constructively consider and effectively analyse a wide range of information for a specified task produce well-structured, coherent and detailed arguments in response to a given brief, using marketing terminology fluently evidence insight, understanding and application of key principles express ideas persuasively, applying appropriate marketing terminology and concepts accurately apply a wide variety of illustrative examples to underpin concepts used draw valid conclusions and make informed recommendations reflect on and evaluate own learning across module and assess how this will affect current and future practice Time Management and Presentation 10% plan, review and complete work within the specified deadlines/time and produce work of an exceptional and professional standard of presentation, format and tone Grade B This grade is given for work that meets all of the assessment criteria at Certificate level to secure at least 60% and demonstrates a candidate s ability to: develop an appropriate research strategy for secondary research identify valid and relevant information from a suitable range of relevant sources for the discipline evidence detailed knowledge and understanding of the marketing discipline at Certificate level consider and analyse a range of information for a specified task produce logical arguments in response to a given brief, using marketing terminology correctly evidence sound understanding and application of key principles express ideas clearly, applying appropriate marketing terminology and concepts accurately apply a variety of examples to illustrate findings draw reliable conclusions and make sound recommendations reflect on and evaluate own learning on aspects of the module and assess how this will affect current and future practice plan, review and complete work within the specified deadlines/time and produce work to a high standard of presentation, format and tone Grade C This grade is given for work that meets enough of the assessment criteria at Certificate level to secure at least 50% and demonstrates a candidate s ability to: develop an appropriate research strategy for secondary research identify relevant information from a minimum number of sources for the discipline evidence a satisfactory level of knowledge and understanding of the marketing discipline at Certificate level produce arguments in response to a given brief, using sufficient marketing terminology evidence a basic understanding and application of key principles outline ideas and concepts using appropriate marketing terminology draw limited conclusions and make some recommendations reflect on and evaluate own learning on aspects of the module and assess how this will affect future practice complete work within the specified deadlines/time and produce work of an acceptable standard of presentation, format and tone analyse a minimum number of sources of information for a specified task apply examples to support findings Grade D This grade is given for borderline work that does not meet enough of the assessment criteria at Certificate level to secure a pass and is within the band 45-49%. This may be due to: an inability to develop an appropriate research strategy for secondary research insufficient sources of information being used to underpin research for the discipline repeating case material rather than evidencing knowledge of the marketing discipline at Certificate level a lack of detail and argument when analysing information for a specified task limited use of marketing terminology a lack of basic understanding and application of key principles insufficient use of marketing terminology and/or incomplete grasp of key concepts limited use of examples to support findings superficial conclusions and recommendations which lack depth and insight little evaluation of learning and/or impact on future practice work not being completed within the specified deadlines/time and errors in presentation, format and tone Page 19

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