1.
Category Definition.
Our further analysis and recommendations are based on the following understanding of Hair Care Category:
Hair Care:
1) Hair Care Total: a) Hair Care:

Mainstream (Shampoo, Conditioner, Stylers, Hairspray, Perms/Relaxers)

Salon Inspired (Shampoo, Conditioner, Stylers, Hairspray, Perms/Relaxers) b) Hair Color (Women’s, Men’s)
2) Hair Care Other: a) Professional (Shampoo, Conditioner, Stylers, Hairspray, Perms/Relaxers) b) Baby/Kids (Shampoo, Conditioner) c) Ethnic (Shampoo, Conditioner, Stylers, Hairspray, Perms/Relaxers, Women’s
Haircolor, Men’s Haircolor)
Key Competitors and Brands.
Based on project goals, limitations and in class guidance we only consider Mainstream and Salon Inspired hair care products (including Shampoo, Conditioner, Hairspray,
Stylers) for our research.
ALBERTO CULVER
AO MANUFACTURERS
ASCENDIA BRANDS
BOOM LLC MFG
CHATTEM
NEXXUS
NOURISHING OASIS
ST IVES
TRESEMME
VO5
ALAGIO
AO BRANDS
DERMAREST
MARC ANTHONY
RID
OGILVE
DISNEY MAGIC SELECTIONS
SELSUN BLUE
SELSUN SALON
ULTRA SWIM
COMBE INCORPORATED LICEMD
SCALPICIN
CONTINTENAL FRAGRANCES, LTD SALON GRAFIX
DIAMOND PRODUCTS
FREEMAN BEAUTY LABS
IDELLE LABS
DIPPITY DO
MINK DIFFERENCE
WHITE RAIN
FREEMAN
CONDITION
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INNOVATIVE BRANDS
INSIGHT
JOHNSON & JOHNSON
KAO BRANDS - JOHN FRIEDA
L'OREAL USA
LORNAMEAD
MEDTECH
NEWHALL LABORATORIES
PRIVATE LABEL
PROCTER & GAMBLE
REVLON CORP
SAMY
SCHWARZKOPF & HENKEL
UNILEVER
VOGUE INTERNATIONAL
FINAL NET
INFUSIUM 23
PERT PLUS
NIX
AVEENO
JOHNSON'S
NEUTROGENA
NIZORAL
ROGAINE
JOHN FRIEDA
GARNIER FRUCTIS
L'OREAL EVERPURE
L'OREAL KIDS
L'OREAL STUDIO
L'OREAL VIVE
AQUANET
FINESSE
DENOREX
PRELL
REAL SOLUTIONS
HOME BEST
KROGER
MIRRA
PERFECT CHOICE
AUSSIE
GILLETTE
HEAD & SHOULDERS
HERBAL ESSENCES
PANTENE
PHYSIQUE
PROCTER & GAMBLE AO
REVLON
SAMY
CITRE SHINE
DEP
GOT2B
LA LOOKS
THICKER FULLER HAIR
ZERO FRIZZ
AXE
DOVE
RAVE
SALON SELECTIVES
SUAVE
SUNSILK
THERMASILK
FX SPECIAL EFFECTS
ORGANIX
3

The shampoo and conditioner category is led by four major consumer products marketers. Procter & Gamble, L’Oréal, Unilever and Alberto-Culver each market a range of brands and together account for more than three quarters of category dollar sales.
1
Procter and Gambler is an industry leader with approximately 37% of market share.
L’Oreal and Unilever follow having 16.7% and 13.6% accordingly in 2007. Alberto-
Culver maintains a more humble market share of 9.2%.
3.
Category Assessment: b . Retailer Assessment (Kroger Hair Care): i.
Category trends, segment trends, key competitive brand trends
Based on Mintel April 2008 report, shampoo and conditioner sales are highest in the channel designated by Mintel as Other, encompassing Wal-Mart and other mass merchants, but also including warehouse clubs, natural food stores, convenience stores, and other miscellaneous outlets. Sales in this combined channel totaled $2.85 billion, a little over half of the category.
The Other channel also led sales growth for the category, increasing more than
16% over the last two years and accounting for 2/3 of the dollar sales increase in the category during that time. As big as Wal-Mart is, it does not appear to be accounting for all of the growth in the Other channel. Target has done well in this category, as have outlets such as dollar stores.
Supermarkets, while the second-largest channel in the category with sales of just over $1 billion, exhibited the slowest growth, increasing just 5% and losing share.
However, the focus on fresh, and in some cases health and wellness, could make supermarkets the ideal channel for shampoo and conditioner marketers looking to highlight products made from all-natural and organic ingredients.
Beauty salons and barbershops, selling mostly higher-priced “salon-only” shampoos and conditioners, make up the third-largest channel for the category, with a little under $800 million.
Sales in drug stores grew faster than the category as a whole, increasing nearly
14% over the past two years to $757 million.
2
Further we are going to discuss Kroger as a Hair Care Category channel a in a greater detail. We will also discuss segment trends – Mainstream vs. Salon Inspired products.
Overall Kroger category Household Penetration decreased (-0.1%) and currently is 23.6%, followed by decrease in Dollar Sales (-1.0%), Unit Sales (-0.7%), Units per
1 Shampoo and Conditioner – US – April 2008. Leading companies. Mintel.
2 Shampoo and Conditioner – US- April 2008. Retail Channels. Retail Channels –Supermarkets. Mintel.
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Household (-1.9%), Units per visit (-1.9%).
3
However, there is a slight increase in Buying Households (1.2%) and a very slight increase in Visits per Household (0.1%).
The most growing segment is Salon Inspired . Even though it has only 2.6%
Kroger Household Penetration, but its has shown a significant growth in Households
Buying (6.2%), Dollar Sales (11.6%), Unit Sales (9%) and more modest, but still promising growth in Units per Visit (0.7%), Visits per Household (1.8%). Price per Unit increased (2.4%).
On the other hand, the Mainstream segment has 20.7% Household Penetration and this number has not changed at all. This segment has a very slight Households
Buying growth (1.5%) and Dollar Sales growth (0.1%), along with a decrease in Unit
Sales (-1.0%), Units per Household (-2.4%), Units per Visit (-2.1%) and Visits per
Household (-0.4%). Price per Unit increased (1.1%).
One of the strongest P&G’s brand is Pantene . It has the highest market share overall in a category (22%) and at Kroger specifically (4.9%), with a tendency to grow
(1.3%) and (0.3%) respectfully. Pantene’s Households Buying increased (7.9%) as well as Dollar Sales (2.0%), and Unit Sales (2.0%). However, Units Per Household decreased
(-5.4%), Units per Visit (-4.3%), Visits per Household (-1.2%). Price per Unit has not changed.
Gillette having a modest Category Household Penetration of (2.3%) overall and
(0.4%) at Kroger, has shown an exceptional growth. Households buying increased
(231.2%), Dollar Sales (259.4%), Unit Sales (279.2%), Units per Household (14.5%),
Units per visit (0.1%), Visits per Household (14.4%). Price per Unit has decreased (-
5.2%).
Other P&G hair care brands such as Aussie, Head and Shoulders, Herbal Essences has shown a decrease in their performance.
Aussie’ s Category Household Penetration decreased overall (-0.4%), specifically at Kroger (-0.1%). Brand has shown a decrease along most category metrics: Households
Buying decreased (-3%), Unit Sales (-7.6%), Units per Household (-4.8%), Units per visit
(-3.6%), Visits per Household (-1.3%). Dollars Sales increased slightly (1.1%), given that
Price has increased (9.4%).
Head and Shoulders performance decreased as well. Category Household penetration decreased (-0.5%) overall and (-0.2%) at Kroger. Households Buying decreased dramatically (-6.1%), followed by decrease in Dollar Sales (-3.9%), Unit Sales
(-9.4%), Units per Household (-3.5%), Units per Visit (-3.9%). Visits per Household increased slightly (0.4%). Price has increased (6.1%).
Herbal Essences Category Household Penetration has decreased (-0.2%) overall and (-0.1%) at Kroger. Again this brand has shown decrease among most of the category performance metrics. Households Buying decreased (-0.3%), Dollar Sales (3.0%), Unit
Sales (-5.1%), Units per Household (-4.8%), Units per Visit (-3.7%), Visits per
Household (-1.2%). Price per Unit has increase (2.3%).
Conclusion:
As we can see the best Performing segment is Salon Inspired.
The brands that show growth are Pantene and Gillette.
3 All data is based on 52 weeks time period from 11/16/08 to 11//14/09, 10% sample rate, Kroger coordinated geographies.
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Overall, brands that kept the price stable or even decreased it, have shown significantly better performance compare to brands with increased price.
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