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Work with 80% of the beauty market and have become the industry

standard for beauty market insight

We tell the brands what’s being said about them in print media.

and on social media

As you can imagine with over 4,000 brands active in the market it’s

impossible for a marketer to keep track of them all.

So what we do is collect data on every single beauty brand and

give our customers the whole market.

We took these learns in print and developed our social media

service.

We monitor over 80 million website, globally in 20 languages in real

time.

Operating profitably in the UK, Australia and now Germany

This year after extensive interviews and research amongst out

client base launched the Promotional Discovery tool as part of our

strategy to bring together multi layered data sets to provide real

actionable market insight – come onto that later -

The idea always being to help fragrance brands sell more product

CLICK NOW FOR NEXT SLIDE

Print media

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In 2012 Fragrance PR was up by 13% and ad spend was flat lining Normally stand here and say what a great year fragrance has had in the media Sat down to put the data together, wondering how we can make another story out of another great year Apart from…… CLICK now for next slide: Non smiley face

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It wasn’t another great year In fact almost the exact opposite and I think quite worrying for the industry Take you back in time PR 2010 and 2011 + 6% 2012 +13% And last year…….

CLICK now for next slide: -1%

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All editorial coverage PR for fragrance was overall down by 1% However fragrance doesn’t work in isolation so it’s important to look at the rest of the market After all cosmetics, skincare, haircare and toiletries are all competitors all fighting for the same share of voice So how did they do?

CLICK now for next slide: UP

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They all had increases, quite simply more was written

about your competing beauty categories in 2013 than 2012

Looking back we have never seen the pattern that I am

going to show you now

CLICK now for next slide: Skincare, toiletries,

haircare, cosmetics

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Every other category has had an editorial increase.

Toiletries had a particularly strong year, up 11% when

previously it was down 13%, and that Is a very dramatic

shift and is one reason why fragrance PR has suffered

overall

The significance of this is……..

CLICK now for next slide: 12%

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Fragrance represents just 12% share of all beauty editorial

pages

CLICK now for next slide: 31 new products

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So at a time when the fight for offline media space is ever

increasing with 11,000 new products coming to market in

2013 (31 every day)

fragrance is in real danger of being squeezed so it’s time

to sharpen those PR strategies

And if you are going to focus on PR which of the

publishers are the most supportive?

CLICK now for next slide: Publishers

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IPC Southbank only mainstream consumer publisher to

increase fragrance PR overall last year

CLICK now for next slide: Magazines

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and whilst Instyle is up 33% , when we get into the detail,

competing titles such as Wonderland is up significantly for

fragrance and Cosmo moved up into 16th place in the

consumer press Top 20 for fragrance editorial in 2013, up

from 29th in 2012

That was an overview of the editorial picture so what about

advertising?

CLICK now for next slide: 3rd

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The ad picture is more encouraging, depending which side of the fence you’re on In 2012 fragrance ad spend moved in front of cosmetics for first time and in 2013 fragrance pulled even further ahead with an increase in spend, up from 2% from a zero increase in 2012 So spend is up but PR is down, a complete turnaround on last year Still in 3rd place in terms of spend Only 2 categories increased spend…Fragrance and Haircare Which companies were driving the turnaround? CLICK now for next slide: companies

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The top 10 companies spend over 90% of all fragrance ad

spend and attract 75% of all fragrance editorial

Just 5 of Top 10 frag companies had an increase in PR

5 of Top 10 frag companies had an ad spend decrease

and a PR decrease

And only 2 companies increased ad spend (both by 18%)

and had an increase in PR

CLICK now for next slide: soapbox

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PR under pressure and ad spend increased so I am back on my annual message Analysis shows that there is little media planning synergy between spend and product placement and even less so with online For fragrance to get back to the performance levels of previous years it must join up the dots and coordinate its activity more precisely and drive the ROI So let’s look at that now How much do you need to spend on display advertising to

get £1:00s worth of equivalent value space PR? CLICK now for next slide: ROI

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At one end of the spectrum you have HELLO delivering the

best value of any of the fragrance mainstream titles.

For every £2.91 spent on advertising HELLO returned

£1:00 worth of PR

At the other end, Glamour which takes the highest

fragrance ad revenues still delivers an expensive ROI, and

you have to spend £22.88 to get that £1.00 worth of

editorial.

This is not an exact science and it doesn’t quite work like

that but in ranked order I thought you would be interested

to see which publishing houses deliver the best return

fragrance

CLICK now for next slide: Bangs for bucks

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As you can see here there is more to know.

For example IPC Southbank in 5th place is the only

publisher to increase fragrance credits, but overall across

its portfolio has some way to go.

Within this individual titles will perform better than others

and the purpose of this is to remind us to look for the value

within the adv/PR marketing mix combined with the

relevance of the target market and the publication’s

audience profile

For any strictly come dancing fans a change of pace

CLICK now for next slide: Swing

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Where there any swings and shifts in the fragrance market

last year?

CLICK now for next slide: Swing 2

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Yes

There was a 20% increase in luxury PR, up from just 7%

in 2012 and it was driven by over 20+ more new luxury

fragrance products as well as very strong performances

from Clive Christian and Jo Malone

The other notable category type is Celebrity, down 33%

from an 18% increase in 2012

But overall it wasn’t a great year as I said and here now

you can understand the picture better

CLICK now for next slide: Trend

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2013 = red

2012 = blue

A good start January to April was quickly eroded and

fragrance failed to outperform across the rest of 2013

The build up to Christmas is important and when we

analysed why November was so down on last year we

saw…

CLICK now for next slide: November

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Quite simply less products appearing in the press and there was

less column centimetres being given to those that did

And that lead us into Christmas…..

CLICK now for next slide: Christmas 2013

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Some sources have reported a slow start to the Christmas

buying patterns and fragrance PR and ad spend were

down 2% and 10% respectively across the December

dated titles we monitor.

Good news of course is that sales were up and that’s what

it’s all about

CLICK now for next slide: Print media summary

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I do want to look at online for December but just to

summarise and to say

The trend for fragrance is worrying and we are of course

tracking the market to see how we progress in 2014 but I

can tell you that PR is down in January and ad spend is

up, and the changes are significant.

I now want to look at social media

CLICK now for next slide: Wordle

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Explain social and online difference

Beauty business and social media:

Changing Getting more calls now than ever before Moving into a new era Product placement on this exciting media platform

CLICK now for next slide: Great choice great metrics

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Great choice great metrics Over 50 providers CLICK now for next slide: More work

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But the challenge for the fragrance industry is that all this data can just mean more work and less results It can mean heads down looking at data rather than heads up driving the business CLICK now for next slide: 5

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So we took a look at the top performing fragrances for print PR in December and then their digital strategy for the same period The amount of mentions, impressions and amplification that online can generate is incredible. Of all the mentions we monitored one fragrance had …… CLICK now for next slide: 1

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Just one mention Another fragrance generated…… CLICK now for next slide: 3

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3 mentions…..

And another 2 generated just……

CLICK now for next slide: 152 379

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152 and 379 mentions.

and this is where it gest more interesting.

Of those 379 mentions…..

CLICK now for next slide: Where from graph

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You can clearly see that the strategy was focussed on Twitter and News sites which is online titles and ezines. In terms of any product 379 media mentions would be very effective but then the top performing product across December for both print and social was ….. CLICK now for next slide: Chanel No 5

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Chanel No 5 with over 5,000 mentions, clearly driven by a

highly organised twitter campaign

One tweet had 32,000 followers and the Marilyn Monroe

hahstag created just under 102,000 impressions

RTs are an important measure because you know that

someone has done something about it and here the

ReTweeted Chanel Twitter handle made nearly quarter

million impressions.

The message is clear in that online is just another media

platform and is highly effective as part of the overall media

mix and with some brands virtually inactive there are real

opportunities for those brands that are exploiting the

medium

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CLICK now for next slide: Summary

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So keep it simple, agree your targets at the outset and make it work for you rather than the other way around We’re just a few minutes away from completion now and we would like you to be the first to see an exclusive view of how fragrance promotions helped drive Christmas sales and I will take you through it now

CLICK now for next slide: Promotions

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To help understand what insight would help the industry we carried out a number of personal one to one interviews over the last year, and the need to get a better handle on promotional activity was often top of the agenda. CLICK now for next slide: Why do we need it?

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The answer as to why it’s needed are best answered by

these words from a major fragrance company and are

more compelling than my own and the other reason is….

CLICK now for next slide: Because

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Reduce wastage by making more informed decisions about where and how to allocate promotional spend And this is how we do it CLICK now for next slide: 8 retailers

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We’re monitoring the fragrance promotional activity

across 8 retailers and 1200 SKUs and here are our

top line key finding from Christmas 2013

CLICK now for next slide: Top down view

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The Fragrance Shop was the number one fragrances promotions retailer and you can see here their strategy: 46% of fragrances = on promotion of one sort or another Of that… 17% of fragrances = discounted 26% of fragrances = GWP 3% of fragrances = combination of the two Then we have ranked some of the other retailers by the discount offered off RRP Another question we hope to answer is related to that earlier slide CLICK now for next slide: GWP ?

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Well imagine layering in your sales data and then

what questions could be answered?

CLICK now for next slide: Final

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So our message is that for the first time in a long time fragrance is underperforming in print media and is not fully embracing online. Sales were up at Christmas but the negative media trend may not make that happen again this year so we would like to work more closely with you to help turn that all around in 2014 END

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