king of shaves case study.pdf

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www.datamonitor.com Datamonitor Europe Charles House 108-110 Finchley Road London NW3 5JJ United Kingdom t: +44 20 7675 7000 f: +44 20 7675 7500 e: [email protected] Datamonitor USA 245 Fifth Avenue 4th Floor New York, NY 10016 USA t: +1 212 686 7400 f: +1 212 686 2626 e: [email protected] Datamonitor Germany Kastor & Pollux Platz der Einheit 1 60327 Frankfurt Deutschland t: +49 69 9750 3119 f: +49 69 9750 3320 e: [email protected] Datamonitor Asia Pacific Room 2413-18, 24/F Shui On Centre 6-8 Harbour Road Hong Kong t: +852 2520 1177 f: +852 2520 1165 e: [email protected] Datamonitor Japan Aoyama Palacio Tower 11F 3-6-7 Kita Aoyama Minato-ku Tokyo 107 0061 Japan t: +813 5778 7532 f: +813 5778 7537 e: [email protected] King of Shaves XCD case study Marketing skincare to men Reference Code: CSCM0078 Publication Date: 09/05

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Page 1: King of Shaves Case Study.pdf

www.datamonitor.com Datamonitor Europe Charles House 108-110 Finchley Road London NW3 5JJ United Kingdom t: +44 20 7675 7000 f: +44 20 7675 7500 e: [email protected]

Datamonitor USA 245 Fifth Avenue 4th Floor New York, NY 10016 USA t: +1 212 686 7400 f: +1 212 686 2626 e: [email protected]

Datamonitor Germany Kastor & Pollux Platz der Einheit 1 60327 Frankfurt Deutschland t: +49 69 9750 3119 f: +49 69 9750 3320 e: [email protected]

Datamonitor Asia Pacific Room 2413-18, 24/F Shui On Centre 6-8 Harbour Road Hong Kong t: +852 2520 1177 f: +852 2520 1165 e: [email protected]

Datamonitor Japan Aoyama Palacio Tower 11F 3-6-7 Kita Aoyama Minato-ku Tokyo 107 0061 Japan t: +813 5778 7532 f: +813 5778 7537 e: [email protected]

King of Shaves XCD case study

Marketing skincare to men

Reference Code: CSCM0078

Publication Date: 09/05

Page 2: King of Shaves Case Study.pdf

All Rights Reserved.

No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form by

any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission

of the publisher, Datamonitor plc.

The facts of this report are believed to be correct at the time of publication but cannot be guaranteed.

Please note that the findings, conclusions and recommendations that Datamonitor delivers will be based

on information gathered in good faith from both primary and secondary sources, whose accuracy we are

not always in a position to guarantee. As such Datamonitor can accept no liability whatever for actions

taken based on any information that may subsequently prove to be incorrect.

King of Shaves XCD case study CSCM0078

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ABOUT DATAMONITOR

Datamonitor plc is a premium business information company specializing in industry analysis.

We help our clients, 5000 of the world’s leading companies, to address complex strategic issues.

Through our proprietary databases and wealth of expertise, we provide clients with unbiased expert analysis and in-depth forecasts for six industry sectors: Automotive, Consumer Markets, Energy, Financial Services, Healthcare, Technology.

Datamonitor maintains its headquarters in London and has regional offices in New York, Frankfurt, Hong Kong and Japan.

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King of Shaves XCD case study CSCM0078

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WHAT IS THIS REPORT ABOUT?

This report forms part of Datamonitor's case studies series, which explores business practices across a variety of disciplines and business sectors. The series covers a range of markets including food and drink, retail, banking and insurance, pharmaceuticals and software. Each case study provides a concise evaluation of a company that stands out in some area of its strategic operations, highlighting the ways in which the company has become one of the best in its field or how it deals with different problems encountered within that sector. Who is the target reader? This case study is designed for industry executives, consultants, analysts and researchers, providing them with a useful benchmarking tool and offering a blueprint for potential improvements. It provides valuable insight into the methods used by important industry players that give them a competitive edge, allowing the reader to capitalize on the knowledge of experienced companies when, for example, entering a new niche or market. Report content The report is divided into three main parts – Introduction, Case Study and Conclusion – followed by Research Methodology and Related Research sections:

Introduction: provides historical background on the company and explains how the company has responded to a particular business challenge.

Case study: provides the main body of text, detailing the company's approach to a particular challenge; for example, superior customer relationship management, use of technology, sales and marketing techniques, etc.

Conclusion: highlights the main findings of the report, summarizing the key strategies the company has employed.

Research Methodology: details when research was carried out and the approach used in writing the report.

Related Research: lists a number of reports on a similar theme to the case study, which may assist the reader in further research.

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Table of Contents

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TABLE OF CONTENTS

ABOUT DATAMONITOR 2

WHAT IS THIS REPORT ABOUT? 3

INTRODUCTION 6

Introduction 6

CASE STUDY 7

King of Shaves XCD background 7

The rise of the metrosexual 7

Vocabulary for the boys 8

A straightforward approach to packaging 8

Gaining the attention of the male consumer 10

The emergence of cosmetics for men 10

CONCLUSIONS 12

Conclusions 12

RESEARCH METHODOLOGY 13

Research methodology 13

RELATED RESEARCH 14

Evolution of Global Consumer Trends 14

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Table of Contents

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LIST OF FIGURES

Figure 1: King of Shaves XCD logo showing the "Enhance, Camouflage, Defend" strapline 8

Figure 2: King of Shaves XCD products include a moisturizer (Defender), a tinted moisturizer (Improver) and a mattifying gel (Perfecter) 9

Figure 3: Clinique packaging - M Shave Aloe Gel and M Lotion 9

Figure 4: Jean-Paul Gaultier’s Le Male Tout Beau brand of male cosmetics 11

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Introduction

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INTRODUCTION

Introduction

Men are traditionally seen as being averse to using skincare products, perceiving them as too effeminate to use in their daily lives. However, over the last five years, skincare targeted specifically towards men has started to appear in mass retail stores, spurred by the changing attitudes of male consumers towards grooming. This has been aided by the popularity of shows such as Queer Eye for the Straight Guy, which put forward the message that it is OK for men to be willing to experiment with grooming products.

Despite the emergence of new product ranges, skincare still only accounts for a small percentage of the male personal care market. In 2003, it represented 4.5% of all male personal care occasions in the US and Europe by value. In contrast, personal hygiene products, including bath and shower products, deodorants and soap, accounted for over 68% and just under 69% of all occasions in both Europe and the US, in 2003. However, male skincare is a highly dynamic market, characterized by high levels of innovation, which should help to increase male interest in the market.

This report focuses on the King of Shaves XCD brand, illustrating how a mass market male skincare brand can successfully be marketed to appeal to men. Launched by KMI, the King of Shaves XCD (pronounced exceed) range has used men's familiarity with shaving as a way to introduce them to skincare, and deliberately distances the range from a feminine style of marketing. The range has won various accolades, including the FHM USA 2004 'Best Grooming Innovator' award.

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Case Study

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CASE STUDY

King of Shaves XCD background

Privately held KMI launched XCD in December 2003 in the US and UK as an extension of the King of Shaves shaving line. The brand was launched exclusively in CVS in the US and in Boots in the UK. Promoted as an "image enhancement regime for men", the brand incorporates a number of skincare products, including self tanning facial cream, mattifying gel to cover up blemishes and reviving eye cream. XCD products are priced between £7.99 and £11.99 (US$14.00 andUS$21.00).

The rise of the metrosexual

In launching a male skincare range, KMI exploited the emergence of the metrosexual. Datamonitor defines this term as a heterosexual man, usually an urban professional, who adopts traditionally female behaviors such as following beauty regimes and fashion trends. KMI's publicity for the range acknowledges XCD is marketed towards this type of man: "XCD has been designed in response to the growing demand from metrosexual man - a lager sipping lad with a fat wallet and a penchant for looking his best."

Today there is an awareness of well-being amongst men and a growing interest in how they look. Male attitudes to beauty care have changed during the past few years because opinion-formers - such as David Beckham - are not ashamed to admit to using skincare products. Shows such as Queer Eye for a Straight Guy, in which a straight man is given a makeover by gay men, have also helped in the growth of male skincare. These changing attitudes aided KMI in its development and marketing of the range.

Hiten Dayal, chairman of KMI, has noted that the rise in interest in male skincare reflects the rise in interest in aftershave in the 1950s: 'It's really the story of how people started selling perfume to men back in the 1950s - they made it more masculine and called it "aftershave".' By calling male perfume aftershave, marketers were able to de-feminize perfume, enabling men to retain a sense of masculinity while using a traditionally female product. In a similar way, by using masculine vocabulary, KMI has tried to eradicate men's suspicions about using a traditionally female product.

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Case Study

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Vocabulary for the boys

Many cosmetics companies, particularly the prestige market, are based in France and often use French beauty terminology on their packaging. Whereas this may not be a problem when marketing to women who are knowledgeable about personal care, men may not necessarily understand the message. Therefore, instead of using traditional cosmetics language to describe XCD products, the company has used words that it believes men will think are clear and straightforward, and that they can relate to. The brand's strapline is "Enhance, Camouflage and Defend". In traditional cosmetics language these would be termed "beautify, conceal and reduce visible signs of ageing."

Figure 1: King of Shaves XCD logo showing the "Enhance, Camouflage, Defend" strapline

Source: shave.com D A T A M O N I T O R

KMI also tries to relate XCD product descriptions to a masculine lifestyle. For example, the Perfecter Smoothing and Mattifying Gel is described on the XCD website as: "Whether it is the night before or the morning after, Perfecter Smoothing and Mattifying Gel gives you the extra help your face needs." Adapting the language to men is a simple but still underutilized tactic.

A straightforward approach to packaging

As well as 'masculine' vocabulary, King of Shaves XCD uses packaging which avoids any connotations with femininity. Each product is packaged in basic plastic bottles imprinted with black writing, and is over-boxed in clear fronted, black packaging. The bottles vary in color from white, blue and orange - colors which were chosen to appeal to masculine tastes.

The product packaging imitates some high-end male skincare products such as Clinique for Men, which similarly uses masculine colors like black, grey and blue. By

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Case Study

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styling itself on more expensive brands, KMI may have sought to gain custom from men who covet high-end brands but can't afford to buy them.

However, linking packaging to high-end makes may not solely attract men to a brand. A Datamonitor consumer survey, featured in the Changing Male Grooming Behaviors and Occasions report, found that men attribute less importance to brand image and packaging than women, preferring to buy products for their functionality and convenience. In Datamonitor’s consumer survey, 67% of men named “proven functionality” as their main requirement for a product, and 55% ranked “ease of application/convenience” second. Therefore, skincare companies are more likely to achieve consumer loyalty to their brand if a consumer finds a product achieves the required results, than through packaging alone.

Figure 2: King of Shaves XCD products include a moisturizer (Defender), a tinted moisturizer (Improver) and a mattifying gel (Perfecter)

Source: Productscan Online D A T A M O N I T O R

Figure 3: Clinique packaging - M Shave Aloe Gel and M Lotion

Source: Clinique D A T A M O N I T O R

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Case Study

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Gaining the attention of the male consumer

In order to promote itself towards the average male consumer, KMI has advertised the XCD range using images of sportsmen and other 'macho' men. For example, the US launch was supported by an advertising campaign featuring Jason Kid of the New Jersey Nets. In addition, in July 2005, the whole King of Shaves brand was promoted in the UK through ads on Xfm, Virgin and Talk Sport, stations which have a large male audience.

KMI also aims to gain the maximum attention of men through XCD's in-store positioning. Instead of featuring alongside other male and female skincare products, XCD is positioned by razors and deodorants, products which men are more familiar with than skincare. Finding the right place to position male skincare is vital as men are traditionally embarrassed about shopping for personal care products. A Datamonitor survey of male consumers revealed that 25% of men had at some point entered a shop with the intention of purchasing a personal care product, and subsequently left without doing so as they felt embarrassed and confused browsing the shelves.

By positioning the range next to shaving products, the company is using men's familiarity with shaving as a way to introduce them to skincare. It is also capitalizing on the status of its own shaving products - according to the company, King of Shaves is the number two 'shaving software' brand (by sales value) behind Gillette in the UK.

The emergence of cosmetics for men

Over the last two years, skincare ranges that owe more to traditional female-orientated or unisex skincare products have been launched in the US and Europe. Jean-Paul Gaultier’s male cosmetics range, Le Male Tout Beau, launched in September 2003, is the most extreme of these, featuring lip gloss and eye liner. Although KMI hasn't launched its own range of male lipsticks or eye liner, XCD does include a tinted moisturizer, which is effectively a male cosmetic.

However, will KMI one day launch its own range of male lipsticks? Company chairman, Hiten Dayal, believes so, envisioning a time when cosmetics other than moisturizers will become acceptable in the mainstream market. "With XCD, we have focused on a different vocabulary that speaks to men in their own language. Now we accept moisturizers. In four or five years time, we'll accept cosmetics."

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Case Study

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Figure 4: Jean-Paul Gaultier’s Le Male Tout Beau brand of male cosmetics

Source: amazon.com D A T A M O N I T O R

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Conclusions

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CONCLUSIONS

Conclusions

KMI launched its XCD range at a time when men were beginning to accept the use of skincare products. The emergence of celebrities who advertised their own skincare regimes, and of shows publicizing ways men can make themselves look better, aided this acceptance.

KMI used 'masculine' vocabulary to market the XCD range, using terminology that men would find more clear and straightforward than traditional cosmetic language. The packaging was also designed to be unfeminine, so that men wouldn't associate the range with female beauty products.

XCD's retail positioning emphasizes a connection with shaving. The brand is located in the shaving aisle to connect with products men are more familiar with. Being located near to KMI's best-selling King of Shaves brand also helps publicize the range, connecting the company's shaving and skincare products.

Going forward, the company believes cosmetics will be included in the XCD range: whether men will take to these remains to be seen.

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Research Methodology

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RESEARCH METHODOLOGY

Research methodology

A variety of primary and secondary research was carried out for this case study. This included researching the male grooming market on Datamonitor's Interactive Consumer Database and on the Productscan Online Database of new products, alongside an extensive review of secondary literature and other in-house sources of information.

Secondary sources:

• Shave.com

• Xcd.com

• The new face of British men and their £1.3 bn habit; The Independent (August 2004)

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Related Research

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RELATED RESEARCH

Evolution of Global Consumer Trends

Details the evolution of the 10 global mega-trends in Europe, North America, Latin American and Asia-Pacific. Includes all-new attitudinal data and identifies new consumer trends and how to capitalize on them using innovative NPD and marketing. Published: July 2005

The Future Of Personal Care Occasions

This report will define and quantify the needs, motivations and occasions for personal care for both men and women to provide manufacturers with an up-to-date picture of how to meet consumers 21st Century needs. Published: March 2005

Changing Male Grooming Behaviors & Occasions

This report forms part of the 2004 NCI series examining the latest trends in male personal care use across Europe and the US. From changing attitudes to the value of use by different age groups, this report provides a complete review of male grooming. Published: August 2004

Changing Personal Care Behaviors & Occasions

This report will define and quantify the needs, motivations and occasions for personal care for both men and women to an up-to-date picture of how to meet consumers' 21st Century needs. Published: March 2004

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