H&BC brands capture hearts of consumers - health and beauty care - 1994 Power Brands, part 2 - Industry Overview

Discount Store News, Oct 17, 1994

Consumers are becoming increasingly more brand-conscious in health & beauty care as these products often become an extension and a reflection of the consumer.

Health & Beauty Care: Consumer Brand Preference

(Among consumers who shopped discount stores in the past year)

                       All Discount

Power Brands(1)           Stores      Wal-Mart   Kmart   Target
Crest                       9%          11%       8%      8%
Colgate                     8            8        7      11
Gillette                    8            8        8       9
Charmin                     8           10        8       7
Revlon                      6            6        6       7
Lever Bros./Dove            5            7        6       6
Suave                       5            6        5       5
Pert                        5            5        5       5
Dial                        4            6        5       6
Cover Girl                  4            2        4       2
  Rank by
Store Managers(2)
Suave
Crest
Salon Selectives
McNeil Lab
Johnson & Johnson
White Rain
Dial
Colgate
Clairol
Listerine

(1)Based upon discount store consumers' response to the question: "If you were shopping for (product) in discount department stores, which brand of that product would you want?"

(2)Based upon store managers' response to the question: "What are the best performing brands in (department)?"

Source: DSN/Leo J. Shapiro & Associates, July 1994

Not only do these same consumers know what brand they want, they know where to find it. In this survey of consumer buying preferences, more than half were confident that they would find their preferred brand at their local discount store. It is not surprising then that less than half would be willing to switch brands if they couldn't find their desired brand.

This brand loyalty is definitely tied to the nature of the business as these products are typically taken very seriously by the user.

Once these consumers find a product that meets or exceeds their expectations, they are hooked and unlikely to stray from the brand.

The brands that captured the hearts of consumers and were identified by retailers as top performers in H&BC were well-known cosmetics labels, Maybelline, Cover Girl, Revlon and Vidal Sassoon, best known for hair care products and personal care appliances. As a result, these four labels have been classified as Power Brands.

The major challenge in the H&BC category is communicating the difference between H&BC products and cosmetics as consumers often confuse the two.

Life stage analysis: Health & Beauty Care

                 (top brands by age group)

        Busters        Boomers                  Empty Nesters


       (Under 35)       (35-49)       (50 and over)

Gillette  10%   Colgate            10%   Crest              16%
Charmin    8    Charmin             9    Revlon              7
Crest      8    Gillette            8    Colgate             7
Revlon     7    Lever Bros./Dove    7    Lever Bros./Dove    7
Edge       7    Pert                7    Ponds               6

Source: DSN/Leo J. Shapiro & Associates, July 1994

This was the case with brands like Maybelline and Cover Girl which are primarily cosmetics labels; Revlon, also a cosmetic brand, has extended its line into the hair care arena with its Outrageous line.

Other brands that did well with consumers and retail managers were Crest, Colgate, Suave and Pert, all staples of the Top 10 lineup except for Pert, which is new to the list this year.

The Top 10 brands consumers look for in H&BC also includes Gillette, Charmin, Lever Brothers/Dove and Dial.

Crest was a standout among consumers who said they shopped at Wal-Mart as well as by Empty Nesters. Most of the brands were evaluated equally by shoppers regardless of age. The only exceptions were that Dove was not mentioned as often by Busters as a brand they look for compared to the other age groups and Cover Girl was mentioned as a sought-after brand by Boomers.

Store or PL H&BC got a mixed reception from the generations. Busters were the most receptive to PL while Empty Nesters took a middle of the road attitude and Boomers expressed little interest.