PROPOSAL FOR COSMETICS, PERFUMERY AND PERSONAL CARE ITEMS SHOPPER STUDY

PROPOSAL FOR COSMETICS, PERFUMERY AND PERSONAL CARE ITEMS SHOPPER STUDY

NIELSEN IN THE BALTICS Started operations in 1994 20 years of experience in local markets Coverage: all country both urban and rural Nielsen in the Baltic s is a member of European Society for Opinion and Marketing Research (ESOMAR) Member of Lithuanian Market Research Association (RITA) Operating in consumer research, retail measurement, retail and merchandising services Dedicated team of client service and field resources present in all countries, data production in Lithuania Field operates with dedicated staff and supervisors; up to 20% of interviewers work is back-checked 2

COSMETICS, PERFUMERY AND PERSONAL CARE SHOPPER STUDY

METHODOLOGY Data collection method: CAPI Computer Assisted Personal Interviewing Sample: 1000 interviews in each country Soft quotas per age and gender Questionnaire length: 1 interview up to 40 min. length Target group: 18-65 year old country residents, who have bought any cosmetics, perfumery or personal care items in past 3 months. Syndicated study united data acquisition, data analysis and reporting all concerned participants of study. 4

MAIN OUTPUTS Overall purchase frequency of cosmetics, perfumery, and personal care products Deep analysis of Key specialized cosmetics, perfumery, and personal care chains: Awareness & Usage (Top-of-mind awareness; total awareness; trial; regularly and most often visited chains; consideration for future shopping) Leverage analysis Key chains images Overall level of appreciation of Key chains Buying of main cosmetics, perfumery, personal care categories Online buying of main cosmetics, perfumery, personal care categories Shopper Profiles: Chain shopper profiles Trade channel shopper profiles Category buyer profiles 5

EXPLORED COSMETICS, PERFUMERY, PERSONAL CARE CATEGORIES Shampoos Hair Conditioners, masks, oils, serums etc. Hair coloration Hair styling Bar Soap and liquid soap Shower gel Bath products (foam, salt, oil) Body creams, milks and lotions Hand creams Foot creams Face creams (incl. eye cream) Face cleansing products (lotions, wash, scrubs, gels) Face masks Tooth paste Mouth rinse Tooth brushes Other oral care Decorative cosmetic for eyes Decorative cosmetic for lips Other decorative cosmetic for face ( e.g. foundation, face powders, etc.) Decorative cosmetic for nails Perfumery Exclusive / famous brands Antiperspirants and deodorants Sun protection Depilatories Women shaving accessories Men shaving accessories Female hygiene products (tampons, liners) Cotton wool, napkins Baby diapers Other baby hygiene and cosmetics Food supplements and vitamins Organic goods 6

EXPLORED CHAINS LITHUANIA 2014 LATVIA 2014 Cascada Douglas Douglas Drogas Drogas Dzintars Eurokos Kolonna Kosmada Kristiana Kristiana Madara Ecocosmetics L'Occitane Multilukss Martina Stockmann Parfum Express The Body Shop Sarma The Body Shop The study also covers retailer chains RIMI, Maxima cosmetics departments, pharmacies and other places (cosmetics spreaders, etc.) 7

COVERAGE & SAMPLE SIZE LITHUANIA Interview number Main cities 865 Vilnius 350 Kaunas 230 Klaipeda 120 Siauliai 85 Panevezys 80 Other region centers 135 Alytus 45 Marijampole 30 Utena 20 Telsiai 20 Taurage 20 Total 1000 LATVIA Interview number Main cities 800 Riga 630 Daugavpils 95 Liepaja 75 Other region centers 200 Jelgava 60 Jurmala 50 Ventspils 40 Valmiera 25 Jekabpils 25 Total 1000 Town selection criteria: Population Presents of more then one of key specialized cosmetics / perfumery chain 8

OUTCOME EXAMPLES

FREQUENCY OF CONSUMPTION % Wave 1 1 8 27 21 36 7 Wave 2 2 8 24 17 43 7 Wave 3 1 11 21 16 46 6 Wave 4 1 7 16 22 46 8 Wave 5 4 14 28 18 33 3 Several times per week Once per week Once in 2 weeks Once in 3 weeks Once a month Once in 2-3 months Base: All respondents (n=1000), Ref:S3 10

Brand A Brand T Brand G Brand D Brand M Brand F Brand C Brand R Brand I Brand Z Brand U Brand P Copyright 2012 The Nielsen Company. Confidential and proprietary. BRAND AWARENESS 100 90 80 70 60 50 40 30 20 10 0 Top-of-Mind Brand Awareness Other Spontaneous Brand Awareess Prompted Brand Awareness Total Brand Awareness 2013 Total Brand Awareness 2012 97 93 94 88 23 83 84 29 77 74 70 38 63 45 50 45 44 42 39 37 39 38 35 36 34 30 31 36 29 32 29 31 21 31 20 29 23 20 21 18 9 8 4 5 6 8 2 2 2 5 1 3 13 14 10 14 Base: All respondents (n=1000), Ref:Q.1, Q.2, Q.5 11

Brand A Brand T Brand G Brand D Brand M Brand F Brand C Brand Z Brand U Brand P Copyright 2012 The Nielsen Company. Confidential and proprietary. REGULAR SHOPPERS OF PARTICULAR BRAND Wave 1 Wave 2 Wave 3 Wave 4 56 53 48 44 44 41 3837 1 1 2 2 24 22 21 18 1716 14 11 3 2 3 3 1 2 1 1 6 5 3 4 8 8 6 6 28 28 26 24 Base: All respondents (n=1000), Ref:Q.10 12

WHERE IN THE BRAND RELATIONSHIP HIERARCHY IS YOUR BRAND LOSING ITS FRANCHISE? Marketing attention needs to be focused on the stage where the brand is losing its consumers. Recommenders (recommend the store to others) Preferrers (prefer the store over competitors) Dependables (buy most often) Regulars (regularly shop at) Trialists (have tried it) Considerers (will consider for shopping in future) Aware (store awareness) 11 12 13 33 55 77 23 22 44 TOM Other Spont. Prompted ensuring emotive loyalty ensuring behavioural commitment providing brand relevance achieving brand saliency High commitment Low commitment Non-Considerers (will not consider for future shopping) 35 Aware Not Aware 13

CONSUMERS RELATIONSHIP TIERS Brand A Brand B Brand C Brand D Recommenders 55 35 6 4 Prefferers 50 38 7 5 Dependables 46 36 11 6 Regulars 69 66 21 18 Considerers 89 90 68 65 Trialists 99 99 95 94 Aware 54 44 2 100 34 66 1 100 8 84 8 100 4 87 8 99 Non-considerers 11 10 32 35 Q1, Q2, Q3, Q8, Q9, Q10, Q12 bazė: visi respondentai n=500 14

BRAND POSITIONING QUADRANT REPERTOIRE LEADERS High Low UNDEVELOPED LOYALTY NICHE High Base: All respondents (n=1000) 15

OVERALL LIKEABILITY OF BRANDS % 21 97 41 31 43 95 7 6 27 31 66 63 Dislike at all Dislike somehow Like somehow 66 52 54 54 Like very much LIKE 12 9 Brand A Brand B Brand C Brand C Base: n=500 n=500 n=499 n=494 16

IMAGE ATTRIBUTES: STATED AND DERIVED IMPORTANCE It always has what I need / want Good service / performance of the staff Convenient / easy to find departaments/products High quality goods Cosy, pleasant environment Low prices for most of the items Easy to reach / good location of a store Wide choice for people with diff. taste and income Lots of attractive and useful promotions and spec. offers Attractive loyalty program / loyalty cards system Time-tested chain Modern & stylish The 1s to present novelties It runs intensive advertising campaign, is well known Wide choice of exclusive, famous brands Shop for the youth Prestigious / VIP chain Stated Importance (5-point scale) Derived Importance 17

DERIVED IMPORTANCE Copyright 2012 The Nielsen Company. Confidential and proprietary. RATIONAL AND EMOTIONAL STATEMENT IMPORTANCE High SUBLIMINAL SAY IT, MEAN IT LOW DIFFERENTIATORS SAY IT, DO NOT MEAN IT Low STATED IMPORTANCE High 18

BRAND A IMAGE - BY GENDER The most needed services 0.57 Cozy, pleasant environment 0.57 Good place for meeting with friends 0.57 Prestigious / VIP 0.56 It always has what I need 0.56 The best entertainment 0.56 Wide choice for diff. taste and income 0.56 Lots of promos, special offers 0.53 Offers well known brands 0.52 Active advertisement 0.52 Modern and stylish 0.52 Easy to reach/good location of the mall 0.49 Well planned /easy to locate 0.47 Comfortable for families with children 0.45 The best non-food stores 0.45 It has exclusive items 0.44 The best food store 0.42 Good service 0.40 Low prices for items 0.30 BRAND A - female n=298 BRAND A - male n=202 Top2Boxes 0 20 40 60 80 100 19

ASSOCIATION MAP PRICE & ASSORTMENT LOYALTY PROGRAM 20