Range and Momentum in the UK Shampoo Sector
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- Melinda Murphy
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1 Range and Momentum in the UK Shampoo Sector insight engineers regularly cover and publish topics of interest to our clients and prospects. Over the years we have asked market maturity questions from the angle of range, momentum and choice to consumers in various sectors. This time we have concentrated on the UK shampoo sector. We asked the following four questions in August 2015: 1: Thinking about when you buy shampoo, compared to last year are there more, same or fewer shampoos to choose from? (n=2,038) 2: And thinking about the amount of choice in shampoo, do you feel there is currently too much, about the right amount, or not enough variety? (n=1,397) 3: Thinking of the last time you bought shampoo, which of these phrases best describes what happened in-store? (n=1,397) 4: Which one of these statements best describes how you feel about each of these brands of shampoo? (n=1,397) Overview: From a consumer s perspective - A high penetration category (94% buy their own shampoo), with perceived saturation of products, and minimal room for further growth 1
2 1. Choice: Thinking about when you buy shampoo, compared to last year are there more, same or fewer shampoos to choose from? Only 6% of those surveyed did not buy their own shampoo, giving a category penetration of 94%. 94 In category Thinking about when you buy shampoo, compared to last year are there more, same or fewer shampoos to choose from? (CHOICE) 6 Do not buy Two thirds of those surveyed (66%) believe the shampoo market has the same or more choice as last year. Most of the reminder (26%) were in-market, but unable to answer the question. As we see this as a sign of dis-engagement, these respondents were excluded from the remainder of the survey % 26% 6% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% More Same Fewer I don't know, I couldn't say I don't buy shampoo myself 2
3 Too Little Too Little Choice Right Choice Right Too Much Too Much 2. Momentum: And thinking about the amount of choice in shampoo, do you feel there is currently too much, about the right amount, or not enough variety? Nearly half (47%) of shampoo purchasers believe there is too much choice of products available. Only 2% believe there s not enough choice. 47% 51% 2% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Too much About the right amount Not enough 3. Momentum versus Choice: Cross referencing the answers respondents give to the Choice and Momentum questions allows us to split perceptions of the sector into four, revealing a market perceived to be mature/saturated, with very little room for future growth. Momentum Saturated Momentum 47% Shrinking Mature Growth 49% 1% Less Same More Less Same More 3
4 4. Momentum and Choice (Shampoo versus Benchmarks): In 2012, we collected data to an identical question set, for a number of diverse consumer sectors. If we incorporate the Shampoo data, and rank by Growth, shampoo comes in last position, and is third in terms of saturation behind domestic gas tariffs and mobile phone handsets. Supermarket Thai Foods 2 58% 1 Supermarket Chinese Foods 21% 61% 12% 6% Supermarket Indian Foods 18% 60% 16% 6% Supermarket Single Malt Whiskies 1 57% 26% Domestic Gas Tariffs 1 31% 48% 8% Cigarettes 11% 51% 3 Supermarket White Wines 11% 64% 21% 4% Supermarket Lagers 10% 6 2 Supermarket Soups 10% 67% 19% Banks 10% 67% 19% Supermarket Breakfast Cereals 9% 54% 3 Supermarket Instant Coffees 9% 62% 2 Mobile Phone Handsets 8% 38% 49% Daily Newspapers 8% 60% 2 7% Shampoo 49% 47% Growth Mature Saturated Shrinking This raises the question of how a shampoo brand can grow and protect its volume. 4
5 5. Impulse: Thinking of the last time you bought shampoo, which of these phrases best describes what happened in-store? One way to grow is to see if you can create switching in-store, so we also asked respondents how they behaved at fixture on the last occasion they purchased shampoo and the degree to which they considered the brand of shampoo they purchased before arriving in front of the store display. 54% relied on habit, purchasing just the brand they always buy. A further 14% also bought their normal brand, but bought other brands on that occasion too. Of the remaining 32%, 19% claimed to have no pre-conceived idea of which shampoo they would buy, 12% thought they d buy their normal brand, but something at the fixture changed their normal purchase behaviour (males, females 17%), and just 1% had their hand forced by their normal brand not being in-stock. 54% 19% 14% 12% 1% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% I bought my usual shampoo I had no plans about which shampoo to buy I decided at the shelf I bought my usual shampoo, but also bought some others/ another I was going to buy my usual shampoo but chose to buy a different one I had to buy a different shampoo as my usual one was out of stock 5
6 6. Branded Responses: Which one of these statements best describes how you feel about each of these brands of shampoo? Another method for growth is to understand demographic skews by brand and target accordingly, so we asked respondents to describe their feelings towards ten of the most popular shampoo brands (by showing their logos as below). This enabled us to compute individual brand franchise diagrams for each of these brands. This data is available on request. Respondent Saw It is the only brand of shampoo I use It is one of a number of brands of shampoo I use I've used in the past, and though not currently using, will consider using again in the future I've used in the past, but will not use again I'm aware of it, have never tried, but would like to I'm aware of it; unsure if I'll ever use I've never used and never will I've never heard of this brand We categorise as Current user - solus Current user range Lapsed - positive Lapsed - negative Non-user - open Non-user - guarded Non-user - closed Unaware 6
7 Please contact us on or via at if you would like the full tabulations for these questions (with full demographic breakdowns and branded responses), or to discuss how these results might be adapted for the themes and issues in your company or organisation. If you would like a specific theme covered in the future, please send your suggestion to insights@insight-engineers.com NOTE: Shampoo data collected using PDS (Populus Data Solutions) midweek online omnibus for week commencing 24 th August Benchmark data collected in 2012 using Toluna s online proprietary panels. 7
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