Mapping

Shelves Organization

Retailers ask each year to implement products in shelves to provide the most attractive way to sell products.

For retailers as Leclerc, Systeme U, or Intermarché each store receive plans to implement their shelves but they are free to implement or not. That's why sales representative are so important for independant stores (these stores are hold by individuals and are not quoted on stock exchange).

For retailers as Carrefour, Auchan or Casino plans are applicated each year and the store must adopt the strategy of the headquarters.  (these stores are hold by the retailer). 

This sample is an example of the plan of implementation of products, this plan is often provided by industrials with the agreement of the retailer. Retailers ask expertise from large group (the 1st group of the given market or the challenger) and industrial provides a proposition for all the category.

It's a good example of cooperation with industrials and retailers.

Some Key Figures

Brands are really strong in this market. Indeed, private labels only represent 5% of the overall market, which is really low, and especially when we compare the part of private labels in the shampoo category to other mass-market categories; there, private labels represent around 35%.

The second important key indicator is that L'Oréal is the leader of the market with +/- 52% of market share in value.

By segment, “cosmetics” (more for women), “family” (for all), and then “dandruff” (more for men) segments are the main purchasers of shampoos.

If we look at the SASS market (Shampoo + After Shampoo & Serum), we can notice that, in 2012, around 203 products were sold, representing 632 millions of Euros.

In the SASS market, shampoos represent 77% of the market in volume and 70% in value, which means that other products are more expensive and increase slightly the revenue model of each brand. Consequently, to launch a product, it is necessary to create an assortment of products including extra products, such as after shampoo and serum.

Those Data are from IRI CAM 2012 (HM+SM EXCLUDING HD) 

Love story, but true story

For several years, there is a love story between hair and French consumers.

Thanks to our national champion L’Oreal, which has always invested in research and development, new products have been launched to satisfy consumers’ needs, such as DOPAL, launched in 1933.

DOPAL was the first shampoo without any soap and affordable for everyone. DOPAL was a success and represented the beginning of innovation within the shampoo market.

At this point of time, all of the consumers discovered Innovation & Beauty.

Today, the French shampoo market still is a dynamic market (the 6^th market worldwide, just after the German shampoo market). This success is due to the ability of French large groups to strengthen their Research and Development strategies.

Moreover, French distributors increasingly propose new products offered at lower prices and called "me too" due to their similarity with other shampoos found in the market.

Here and now, let’s be focused on French shampoo consumers.

On average, a French individual use 3.6 different products for his hair, such shampoo as well as after shampoo and serum. French are also attached to diversity because they consume, on average, 2.2 different shampoos at the same time.

                                

As a matter of fact, are they all using shampoo?

      

Except if you live on Mars, almost 100% of the French population consumes shampoo, but to be completely fair and precise, 92% of French people use a shampoo and wash their hair 3 times a week.

      

Consequently, who are the 8% missing? These 8% represent French babies and the “no-poo”, i.e. people who refuse to use shampoo. Please take a look at this website encouraging you to try a new life, i.e. “a life without shampoo”.

http://echosverts.com/2014/01/31/mes-3-premiers-mois-sans-shampooing/

On average, €31 are spent monthly by French households for cosmetics and €8.4 are spent monthly in the hair care category. Interestingly, women and people having frizzy hair spend twice more on hair care products that other French consumers.

      

Now, you know who is a shampoo consumer. Have you recognized yourself? If no, is it because you are a “no-poo”?

Feel free to comment and share!

Three French TV Ads For a Good Start

Today, we want to present you three French TV advertisements representing the three brands we are going to analyze, i.e. Elseve, Le Petit Marseillais, and Head & Shoulders.

Through these advertisements, you will have an overall idea of the brands' atmosphere.

Let's discover these three TV ads.

Elseve -  Fibralogy

Le Petit Marseillais - Karité & Miel

Head & Shoulders - Classic & New 

Who's Who

Definition of our study

We have decided to focus on the French market because we think it may be easier for us to study a market on a delimited area, and France is also well known to be the second market in volume in Europe regarding shampoo just after the German market*.
So, within the French market, we will define some limitations in our research; we will only focus on Shampoo and not on After Shampoo + Other products (such as serum). Moreover, we want to orient our study in the Mass Market, which means we will not study any product sold in department stores, professional stores, hairdresser; however, we will be concentrated in supermarkets, hypermarkets, and hard-discounters.
We will be able to provide you a content of the main actors of this sector. Then, we will focus on and audit the three following brands: Elseve, Le Petit Marseillais, Head & Shoulders.
We will also be able to provide you content on the consumer insight and explain why brands are so successful in this market. Furthermore, we will analyze the competition in a market particularly competitive and different from the Mass Market (in fact private labels are less successful than in other markets**).
Finally, we will analyze brands' personalities and describe the communities built under each of the three brands.

* According to http://www.planetoscope.com/hygiene-beaute/435-consommation-de-shampoings-en-france.html

** According to (data based on year 2010) http://www.iriworldwide.fr/portals/0/articlePdfs/Marques%20Nationales%20&%20MDD%20SymphonyIRI%20Group.pdf