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THE ROLE OF CATEGORY MANAGEMENGT IN HAIR COLOURANTS:BRISTOL-MYERS

Click to edit Master subtitle style Presented by, M.Sabita.

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1. Retail sales of colourants, by type of outlet


1997 m Chemists Discounts 69 35 1995-97 % +21 +21 +56 +14 +23 % 55 28 11 6 100 change

Grocers(multiples) 14 Other Total 8 125

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Retail sales of womens haircare products 1997


1997 m Shampoos Styling products Conditioners Hair colourants Home prems Total 4/2/12 268 230 133 125 9 765 1997 % 35 30 17 16 1 100 1995-97 % change +6 +7 +10 +23 -25 +9

The retailers: Most important among the marketing strategies were: Concentration of retailers. The continuing trend towards own- brand with its implications for mainstream brands. The development of the retailer as a brand The blurring of product demarcation 4/2/12 lines between types of retailers.

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What category managers need to know about consumers:


Micro research What motivates a product purchase?

Macro research Why a particular retailer?

What draws a consumer to a store? How are products seen on shell? How do purchasers shop outlets? What identify a category? Are all aisles shopped? How do consumers react to promotional activity? Where are the category hotspots? How do actual purchases compare to intended purchases? What products are key to consumers within categories? What are the consumer demographics? 4/2/12 How can the consumers be classified?

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The leading players in the subcategory of hair colourants are Clairol, LOreal, Wella and Alberto Culver. LOreal competes under LOreal and laboratories Garnier house names. Recital is LOreal largest brand and is the second largest permanent in the market. Wella replaced its long standing colour confidence permanent colourant from the market in 1997,replacing it with a longer lasting and fade resistant brand-viva colour.
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Alberto Culver developed its colourants business on the back of its VO5 hair care range,and in 1996 launched the first semi-permanent range to include both fashion shades and natural shades that cover grey. Elida Faberges Harmony semi-permanent colourants have lost market share in recent years. The hair colourants market, believed to be worth 110m, is the second fastest growing sector among the top twenty health and beauty categories, and grew by 9.4% in 1996.
4/2/12 The growth is driven by young consumers who are

The two main players, Wella and Bristol-Myers are extending into the total hair care market with ranges of new products,and there is a constant stream of entrants into the market.

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Ian Walters General Trade Marketing Manager Secretary

Snr Trade Marketing Manager Grocery

Trade Marketing Manager Independent s and pharmacy Colour

Trade Marketing Manager Health and Beauty Deodorants

Range/Spac e Planning Manager

Creative Services Manager

Hair care

Scandinavia 4/2/12

South Africa

Middle East

Trade marketing team made up of three trade marketing managers, one of each channel of distribution, as well as a range and a space planning manager. The team marketing process, allows functional experts to focus on areas of the business, developing and implementing strategies by channel and by category. The major competitive strengths are the diverse backgrounds of the team members who come from both commercial and academic areas. Their main functions are: efficient consumer response 4/2/12 (ECR) and implementation in the business; category

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Like most other manufacturers, Bristol-myers have embraced category management as a way of working more more closely with trade customers in developing product categories, but focused on meeting consumer requirements. With the help of the major retailers, a shopper research programme within each of the primary categories has been undertaken. This has given both the company and their retail partners a further insight into understanding how consumers perceive each category at the point of purchase and how they segment different products with each subcategory.
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The use of other information, such as AGB panel data, retailer EPOs data and IRI market information and loyalty card data, augments the amount of knowledge available within the company and is put to use in developing strategies across each category within each trade channel. The company has also had a global investment of the latest computerized space planning software and decision support tools in each market, which not only speeds the presentation of shelf layouts but also gives an added dimension to any proposed layouts as there is far greater depth of data behind each decision to stock selected products appropriate to the size of the store.
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The rationale behind this initiative is to take the purchase of hair colour products less confusing, using a combination of on pack product information as well as point of sale material, it guides the consumer through the decision making process surrounding the colour effect she wants to achieve and how long she wants it to last. The system breaks down the hair colour category in to the following levels and their merchandising proposals to retailers follow criteria: Level 0 : lasts 1-5 shampoos, adds tones of colour, will not cover grey or lighten hair. Level 1 : lasts 6/8 shampoos, enhances natural hair 4/2/12 colour , some products gently cover grey, will not lighten

CONSUMER DECISION-MAKING INFLUENCES


STORE PROMOTION NATIONAL ADVERTISING PRIC E QUALITY PACKAGING DESIGN NECESSI TY

ON-PACK INDUCEMENT QUANTITY REQUIRED

INFLUENCE ON SHOPPER DECISION MAKING

P R MERCHANDISING IMPACT CATEGORY POSITION

VALUE FOR MONEY

PREVIOUS EXPERIENCE SHELF POSITIONING OUTSIDE INFLUENCES E.G.FAMILY/FRIENDS/ENDORSE MENTS

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THANK YOU

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