LAD COLLECTIVE – Marketing Analysis report Katrina Martin MKTG1398 Assessment 1 Peter Walters 13 November 2021 2 Introduction The Lad Collective has experienced market placement success to date with products for the bedroom and bathroom. The target market has been males aged 18 to 35 years who identify with a need for improved hygiene in these two household locations. The target market is reached through online marketing in the wider web and social media space and products are purchased through an online platform. The products are common at the core product level but innovative through additional facets. Using this as the basis for future product innovation this report will introduce the scope of the marketing and customer investigation to support the ideation and design of new products for the Lad Collective. The extension of products for the Lad Collective is likely to be most successful if it is a gradual move through the routines of young males. With bedroom and bathroom already included a natural progression is into other products that relate to these areas. The market trends were analysed for skincare and sunblock products on this basis with the view they can be used in the bathroom as part of the cleaning and care ritual. Ideas for inclusive technological advancements were also explored. Market analysis and product category An analysis of the market for young Australian males aged 18 to 35 years revealed that much of this group can be defined as the millennials. This group is renowned for self-care and social media interaction, yet the Lad Collective research revealed that the males of this group are lax with bed and bathroom cleanliness. Their existing bedding range and bathroom soap range specifically target this issue. Market analysis revealed two key factors that could contribute to the expansion of Lad Collective products. The first is that over one million millennial men (34% of millennial men) use skin care (Roy Morgan, 2020). Understanding that this is a competitive space and there are several international brands dominating the products is MKTG1398_Ass1_MartinK 3 important, but for the Lad Collective it is less about the skincare market share and more about delivering skincare products to young males in a way that is easily accessible and can easily form part of a daily routine. The second is that ‘morning and night routines’ are trending videos on YouTube, increasing by 80 percent, and that 60 percent of online shoppers reported inspiration to make a purchase decision from these videos (Finances Online, 2021). The statistics do not distinguish between male and female viewers but presents the possibility of a product that can be accessed by males for themselves as well as females for the males. An analysis of product trends revealed only three key products for males in 2021, being men’s watches, men’s shoes, and temporary tattoos (Ferreira, 2021). Additional trending functional products such as anti-snoring products, wireless earbuds, and sweeping machines were not attributed to gender but could be purchased for or by males (Ferreira, 2021). The Lad Collective identify technology in sheets as an important part of their growth and include prompting thoughts such as antibacterial technology. Skincare products are typically problematic for males for evening application as they can be oily or greasy or not absorb well and therefore create a need for sheets to be changed even more than usual (Boutkaska, 2019, Warshaw et al., 2020, Huang et al., 2018). Creating a skin care range that considers the impact on bedding, including antibacterial qualities, cooling agents, skin absorption, and no taste or residue for contact between persons can support the technological and innovative aspirations of Lad Collective whilst also expanding the products along the existing lines for the company, maintaining the ‘larrikin’ persona and key core competencies (Hafeez & Essmail, 2007). A ‘no taste’ skin care range has marketable qualities. Further, a morning application skin care range that includes sunblock is reflective of an Australian lifestyle. There is no disputing that skincare is a saturated market for females and is considerably flooded for males, expecting to reach a market value of $185.5 billion by 2027 (Sinless MKTG1398_Ass1_MartinK 4 Skincare, 2021). Further, it is a highly competitive space with large international brands competing for consumers. However, so is bedding and the Lad Collective focus was opportunity in the marketing of the bedding as much as it was the product itself. There is an opportunity to market skincare with unique technological inclusions together with sunblock for Australian males and to package them together for easy use (Jaruzelski & Dehoff, 2010). An inclusive pack that has morning skin care with sunblock (that does not affect work clothes) and evening skin care with technology (Kaufmann, 2019) that aids sleep (that does not affect bedding). Consumer trends for men’s skin care show an increasing uptake of use by males and increased up take of purchase by females for their male partners, friends, colleagues, or family (Akrobetu and Gonzalez-Jimenez). Product trends remain stagnant with similar products cycling through primarily with promises of anti-ageing (Jiang et al., 2020). Social media is saturated with the presence of skin care including direct marketing with sponsored ads and use of social media influencers (ie: Loreal, Clarins, Kylie Cosmetics, Software, Dove). However, this is also a product range that is strong in the traditional marketing space including guerilla public relations and appears in television, print, billboards, magazines, sponsored events and much more (Dove, Loreal, Mecca, Sephora, Clarins). The positive of this is that the awareness of the benefits of skin care does not require marketing for the Lad Collective. Instead, like their bedsheets, they simply need to publicise the unique factors in their range and apply their usual strategies to engage with existing clients and to acquire new interest (Jaruzelski & Dehoff, 2010). Ansoff’s product market mix has been applied to summarise the positioning: MKTG1398_Ass1_MartinK 5 With reference to Bain’s 30 elements of product value that is based on Maslow’s hierarchy of needs (Bain & Company, 2016) the Lad Collective products are functional and emotional, and their advancements in technology and disability support is life changing and has the potential to have social impact. Continuing to develop products that meet these elements of value ensures a consistency for the company and keeps them within their manufacturing lane. This is important for supply chain and other considerations that are influential for young start-ups. The TOWS analysis supports product development as reflected below: Consumer market and consumer segments The Lad Collective is a young start up and they have achieved measurable success with their products to date even though the products are actually a common household item. Their consumer demographic is males aged 18 to 35 years, often single, dating, or moving towards marriage but usually without children yet. There is a mix of education where whilst the demographic addresses university educated as a reflection of the Lad Collective owners, the product and its marketing likely also attracts trades. The geographic is most likely urban or suburban although the company reach to boarding schools does indicate some consideration of rural and remote Australian families. A psychographic can be designed off the existing market for the company and is based on the background and descriptions of Bill and Ed from the Lad Collective who confirm that the product range is based off them personally. The consumer likely enjoys socialising and spending time with friends or colleagues, engages in regular dating, can use technology, interacts with social media to a moderate or high level, can be time poor or poorly focusses available time, dedicated to work, and enjoys time away with friends. MKTG1398_Ass1_MartinK 6 The strength of the consumer segment for the Lad Collective is their level of engagement with social media. With high use of technology, the Lad Collective have chosen to directly market to their consumers through the internet and encourage entry to their sales funnel from the same platform/s. This is unique to other providers in their space who primarily have shopfronts. The consumer group that Lad Collective targets are less likely to engage with bedding shops through physical browsing which provides a differential for product availability and delivery. Any new products should follow this same product differentiation to maintain this distinction. A difference for the Lad Collective is that they identify and market to a consumer group who do not identify their own needs. That is, the target group does not change their sheets regularly and Lad Collective marketed the reason why they do not change them and provided a new product that will now service that need. This means that the target group likely did not notice their own needs until told. This is a unique position for the company in the market. A continued ‘enlightenment’ approach to their consumer purchase preferences is a point of difference. Innovation persona Bill and Ed from Lad Collective explain that their target market is males aged 18 to 35 years who are transitioning into adulthood behaviours and lifestyles. Although they are open to expanding the market to ‘mum and dad’ consumers, the current focus remains on the original MKTG1398_Ass1_MartinK 7 target consumers. This is particularly the case for their own product development against selling products from other companies in collaboration. This report has created a persona that is in line with the existing target market and can easily be adapted to include disability considerations that are prominent for Lad Collective. This innovative persona is to draw connections between the age group and the gender, with the disposable income that includes a care for appearance. Improving the appearance of the bedroom with the existing product range can now extend to maintaining the appearance of the person. Further, a persona that is single but interacts with females regularly so the development of good habits that will be appreciated when inside a relationship is considered an important factor. James is the persona to be introduced and is familiar with the Lad Collective and other agerelated brands such as Nike. James drives an Audi that is a hybrid so is environmentally aware, and drinks Corona that is in line with Bill and Ed’s research that young males can spend more on beer at the pub then their bedsheets. MKTG1398_Ass1_MartinK 8 The age has been chosen because James is at the point in life where he is conscious about ageing as he heads for 30 and is more inclined to be influenced by product marketing that targets self-care. He is also an age where regular checks with doctors will lead to exposure to opportunities like Botox and other clinical ageing solutions where preventative options may become more attractive. A significant reason for this persona is that he is likely close to being involved in more serious personal relationships and this will bring another person into the market space if James can become a regular user of Lad Collective’s products. The Lad Collective can also become associated with a link between young single males and cleanliness and self-care which will then be attractive to their future partners both in terms of the individual male consumer and the brand. Summary This report has visited the potential for product innovation for the Lad Collective and analysed the market trends including product and channel trends and consumer trends. The Lad Collective bedding line operates in a competitive space which it circumvents with a new and unique marketing strategy that delivers the same products to a different group to meet a new need. A need that is not self-identified by the consumer group. This momentum should be maintained through the continued innovation of products that address these consumer gains. This can be done in two ways. First, maintaining the consumer segment already targeted and provide them with additional products that are in line with the existing product range. Remaining in the bedroom or bathroom and focusing on improved lifestyle, cleanliness, presentation that extends to consumer pride for this group. Second, a continued focus on the inclusive nature of product development together with the adoption of new technologies that improve the lifestyles of this consumer segment, both able bodied and less able bodied. In the future this will pave the way for movement into different consumer segments once the technology and products are launched and supported. This report reveals that the target consumer segment is sound and is not yet exhausted by products that the Lad Collective can provide. Remaining in the bathroom/bedroom makes economic sense as it does not demand diversion of marketing strategies. Continuing to advance products with technology and pursue opportunities for products to be inclusive is important for the brand to remain current and stand apart from its competitors. Entering a MKTG1398_Ass1_MartinK 9 skin care market is challenging but expanding an existing market to include skin care ranges that adopt technology for comfort of use and wear, do not affect clothes and bed sheets, are tasteless and non-detectable to partners, and can rely on existing marketing strategies has positive possibilities for a young start-up. MKTG1398_Ass1_MartinK 10 References Akrobetu, j. & gonzalez-jimenez, h. A socialisation perspective on male millennials’grooming habits. 2017. 308-308. Boutkaska, p. T. 2019. The influence of extrinsic and intrinsic motivations on the use of facial skin-care for males in bangkok. Abac journal, 39, 50-69. Ferreira, N 2021, 20+ trending products to sell in 2021, viewed 13 November 2021, https://au.oberlo.com/blog/trending-products Finances online 2021, 16 YouTube trends for 2021/2022: new forecasts and a look into what's next, viewed 13 November 2021, https://financesonline.com/youtube-trends/ Hafeez, k. And essmail, e.a., 2007. Evaluating organisation core competences and associated personal competencies using analytical hierarchy process. Management research news. Huang, l. N., zhong, y. P., liu, d., wang, x. H., gong, c. Y., wen, s., elias, p. M., yang, b. & man, m. Q. 2018. Adverse cutaneous reactions to skin care products on the face vary with age, but not with sex. Contact dermatitis, 79, 365-369. Jiang, j., huhmann, b. A. & hyman, m. R. 2020. Emerging masculinities in chinese luxury social media marketing. Asia pacific journal of marketing and logistics, 32, 721-745. Roy Morgan 2020, Over 1 million Millennial men use skin care, viewed 13 November 2021, http://www.roymorgan.com/findings/8259-millennial-skincare-trends-december2019-202003030055 Warshaw, e. M., schlarbaum, j. P., silverberg, j. I., dekoven, j. G., fransway, a. F., taylor, j. S., maibach, h. I., fowler jr, j. F., atwater, a. R. & reeder, m. J. 2020. Contact dermatitis to personal care products is increasing (but different!) In males and females: north american contact dermatitis group (nacdg) data, 1996-2016. Journal of the american academy of dermatology. MKTG1398_Ass1_MartinK