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Pre-case study on Vichy sunlotion products

By Kenneth Davis,2014-05-17 00:42
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This part also includes a SWOT-analysis made on the brand. The SWOT analysis is a tool for companies / brands / products, or almost whatever to find

Pre-case Study On Vichy Sun Care Products

L’Oréal Brandstorm 2008

Group B7: Ben Alasuvanto 060330 & Mikko Andersson 064050

Contents

    Introduction ...................................................................................................................... 2 The Sun Care Market ........................................................................................................ 2 General Insight on Vichy .................................................................................................. 5 Market value analysis & Brand value matrix ................................................................... 5 Vichy ............................................................................................................................ 6 Nivea ............................................................................................................................. 7 Avéne ............................................................................................................................ 8 Conclusion .................................................................................................................... 8 Commonly on sun care products ...................................................................................... 9

    AGE GROUP: Under 25 Years of Age .................................................................. 14

    AGE GROUP: Ages 26-35 ..................................................................................... 16

    AGE GROUP: Ages 36-50 ..................................................................................... 18

    AGE GROUP: Ages 51 and up .............................................................................. 20 SWOT-analysis on Vichy sun care products .................................................................. 22

    Strenghts ................................................................................................................. 23

    Weaknesses ............................................................................................................. 23 Internal ........................................................................................................................ 23 External ....................................................................................................................... 23 What is a SWOT-analysis .......................................................................................... 24 Comments on the SWOT analysis on Vichy sun care ................................................ 24

    Strengths ................................................................................................................. 24

    Weaknesses ............................................................................................................. 25

    Opportunities .......................................................................................................... 26

    Threats .................................................................................................................... 27 Customer Preferences and Customer Identification ....................................................... 28 Summary ......................................................................................................................... 29 Bibliography ................................................................................................................... 30 Appendix……………………………………………………………………………….32

Introduction

    When looking into a global market such as the market for sun care products, one will find a very diverse market of very distinct and different products offered throughout the commercial playground. The hazards of the different UV rays that the sun shines upon us are not just acknowledged by a certain group of people, but are a common worry for people of all ages and attitudes. This opens up a market for a wide variety of different types of products, that more or less all prevent us from exposing ourselves hazardously to the sunlight. This presentation is set to give the reader insight on what kind of a stance common people in Finland have towards sun care products in general, towards some of the more popular products in this market and obviously where Vichy stands among them.

    Our presentation is mainly divided into two main parts. The first part is a field research on sun care products, which is based on interviews and surveys taken from common people in four different age groups, in order to get more scattered results to simulate a wider population in a bigger age range than what a survey on solely students, for instance, would give. The second part of our project focuses mainly on the Vichy product itself, and what kind of a market it faces in Finland. This part also includes a SWOT-analysis made on the brand. These two parts being the crucial body of the project, we will end the presentation after this with a brief summary of our research and bring the presentation to a closure.

    The Sun Care Market

    The market for sun care products is much more diverse than what you would first think. A frank conclusion about the general idea of sun care products could much be described

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    as that all sun care products are the same and they all prevent our skin from burning in the sun. The reality is much more complicated though, and as already mentioned this opens up a huge market for many kinds of manufacturers and products. Sun care products don’t rely on just one type of customers, or one kind of sunshine. The whole market is highly influenced by geographic conditions and most importantly on different skin types.

    Compared to other sectors within the cosmetics and toiletry sector, the sun care sector is the smallest, being worth $3.2 billion in 2000. The sector is in fast growth though, and is within the top most growing sectors within the cosmetics sector. The greatest foothold for the market is in Europe and North-America from where just short of 77% of the markets sales came from in 2000. Globally L?Oréal was the leading manufacturer of sun care products, but with Beiersdorf’s Nivea Sun as the leading sun care brand, which however was followed by L?Oréal’s Ambré Solaire. On top of this data, all

    global regions where dominated by different sun care product manufactures, so it goes without saying that the market is very crowded with a strong competition. With positive forecasts of future use and with constant development in skin care awareness, it is still a very strongly growing market.

    The trend on sun lotion usage is however in a changing phase. What used to be solely an aid in getting a healthy tan on your skin, has turned more into a preventive way of avoiding the skin from aging and burning while in the sun, more than just getting a bronze color on your skin. This trend has also opened doors for a wider product variety on the market, introducing even more after sun and self tanning lotions. Higher demands for sun care products have also introduced even more sweat-compatible products, not to mention water resistant lotions. Recent trends on the market have also introduced the consumer to products containing much more than just the sun block itself, with herbal mixtures and other skin caring ingredients constantly being added to the product lines. Sun protection still remains the most dominant product on the sun care market, with a crushing 85,7% share of the European market in 2006, where as after sun products are at 9,7% and bronzers at a 4,5% share. Each of these product lines are showing steady growth rates in sales.

    When looking solely into brand shares on the market in 2000, Nivea Sun had a mere lead with a share of 9.6% of the market, followed by L?Oréal’s Ambre Solaire with a

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    declining 7.4% share. These two brands were followed by Coppertone, Banana Boat, Neutrogena, Delial, Hawaiian Tropic, Soltan and Piz Buin. Many of these brands are moderately unknown on the Finnish market, but based on a fair number of interviews with Finnish cosmetologists in the Helsinki area, the Finnish market is dominated by some of the brands mentioned above. The main actors in the Finnish market are obviously Nivea Sun along with Piz Buin, which has traditionally been a popular every-day lotion in Finland and lastly Ambre Solaire. But with Vichy having its distribution done via pharmacies and drugstores, it is in place to list the main brands sold via these distribution channels.

    The pharmacy shelves in Finland are along with Vichy mainly dominated by RoC Minesol, Eucerin, Louis Widemar, Ladival, Aco, Eucerin, Widmer, Zinkosal and Avéne. An interesting fact about general public assumptions in Finland is that sun care products distributed through channels such as pharmacies are more of a luxury kind or for really special types of skins. This might be the case for some products, but this is however for the main part a misinterpretation according to numerous interviews conducted on pharmacists for this project. This can be interpreted as that common people do not find their way to the pharmacy products as well as they find to the products they’re used to in their local markets. This obviously gives further advantage to the “general” market products such as Nivea Sun and Piz Buin. Furthermore we noticed that the general consensus among cosmetologists in various beauty stores and department stores is the lack of knowledge for most pharmacy sun care products. The study that was conducted on cosmetologists throughout various beauty stores in the Espoo based shopping mall, Sello, showed that the products shown in Vichy’s and Avéne’s brochures were widely unknown to the respondents.

    Out of all these products presented in the previous paragraphs we mainly focused our project on Avéne and Nivea Sun along with our main target of study, Vichy. We ended up choosing these products, for the following reasons. Nivea does use a different distribution channel than Vichy, but is the most popular sun care product in Finland and is widely known throughout the population; therefore it is an interesting target which gives perspective on how the use of different distribution channels affects a product’s popularity. Avéne, the third study object in the survey, was picked because it is the strongest competitor for Vichy among products sold in pharmacies.

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    ” Health is vital, start with your skin”

    General Insight on Vichy

Vichy was originally founded in 1931 by Doctor Haller as a ”biological Anti-wrinkle”

    product. Since Vichy was founded, the Vichy laboratories have co-operated with

    international science and medical experts, with a goal of learning to understand the

    human skin better. The secret of the Vichy products is the Vichy Thermal Spa spring

    thwater; it has been used since the 1600 century for curing the skin. Vichy is known for educating the people of how to take care of their skin. Today Vichy is owned by

    L’Oréal with who Vichy acquisitioned in 1951. Vichy is a brand that is only sold in

    drugstores. It contains the famous thermal spa water.

    thVichy is one of L’Oréal’s 17 worldwide brands. It is L’Oréals 5 biggest brand and its

    turnover is 10,1 % of L’Oréals whole turnover. 7 % of Vichy’s turnover comes from

    sun care products. The sun care product brand for Vichy is called Capital Soleil and it

    possesses 24 % of the worldwide sun care market. Vichy is also the most sold cosmetic

    brand in Europe among the brands that are only sold in drugstores, although among sun

    rd care products it is only the 3biggest. Of the Capital Soleil products the protection segment is the biggest with a share of 80 %.the second biggest segment is after-sun care

    with a share of 12,8 %. In opposite to this the most growing segment is bronzers with an

    annual growth of approximately 13 %. The growth for sun care products sold in

    drugstores has been dramatical for the last 5 years, especially among women aged 45 to

    60 years the popularity has increased all the time.

Market value analysis & Brand value matrix

Our survey included 16 people, four people in the age group under 25 years, four people

    in the age group 26-35, four people in the age group 36-50 and four in the age group

    over 50. The purpose of the survey was to find out what people think about Vichy’s,

    Nivea’s and Avéne’s sun care products and their buying habits for the brands. The

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    results of the survey were positioned in the matrix so that each individual’s answer has its own place in the matrix depending on their answers. The matrix used in this survey goes from a scale of -2 to +2 both on the “Attitude” axis (vertical) and the “Purchasing

    Habits” axis (horizontal). The “Attitude” axis indicates, as the text in the matrix implies, how the person feels about the product, where as the “Purchasing Habits” axis indicates the person’s attitude on purchasing the product in question.

    As we can see in the matrix the most dominant ”places” are in the middle of the matrix for all our research brands. This means that the ones who participated in our survey know the brands and buy them sometimes or have bought them, but don’t buy them anymore.

    Besides the matrix we are going to comment other answers and possible problems and positive factors that we found out about the brands in our survey. We also visited two drugstores and several cosmetic and beauty shops so that we could get a wider perspective on Vichy, Nivea, Avene and also on their competitors and the whole sun care market in general.

Vichy

    Vichy is generally thought of as a better product than the average sun care products. The reason for this is mainly the price. People think that they get a better product if they pay more for it. Another reason for this is that Vichy is only sold in drugstores which many people combine with a product that very efficiently protects against the sun and is more reliable. Also the fact that Vichy sun care products have a high protection against UVA and UVB rays makes people think that Vichy sun care products are better than average sun care products.

    The negative sides with Vichy were the price, which many people think is too high and the availability for the product, because it is only sold in drugstores. Many people think that Vichy is a good brand and it makes good products but don’t buy them because of the high price and the worse availability compared with e.g. Nivea. Many people also thought of Vichy as a luxury product but also as a product with many advantages compared to cheaper brands.

    A typical customer who buys Vichy is a well-educated woman in her late 40s or early 50s, who wants to take care of herself and her skin and who is ready to pay a little extra for a better product.

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    Especially men and younger women do not want to pay the high price that Vichy have for a sun care product. Reasons for this might be that people are not aware of the importance of sun care products and don’t realize that a better product protects the skin

    better. The typical person who doesn’t buy Vichy sun care products is a man who is over 40 years old. This man is most likely to not even recognize the brand Vichy. The reason for this is probably that men think that only women use cosmetics and put a lot of money in them. Maybe the commercials are also not really focused on men over 40 years old.

     Of course there are some exceptions. For example we had a 20 year old man in our survey who told us that he knows Vichy and buys it sometimes. The buying habits are most likely going towards that even men buy more expensive cosmetic products and dare to use them.

Nivea

    Nivea is generally thought of as a bit cheaper sun care product that still has a good quality. The obvious reason for this is that Nivea is cheaper than e.g. Vichy or Avene. Nivea is also sold in many more places than the two other mentioned brands, because it is sold in almost every shop. The good quality associated with Nivea is according to our survey its history and tradition. Many older people told us that they have always used Nivea and many younger told the same. You could almost say that Nivea is an ”inherited” product. Many people don’t think that much about what sun care products they use so they choose the cheaper brand that they have always used. Although Nivea is competing with all sun care brands like Vichy and Avene, it’s main competitors are sun care brands that are in the same price class as Nivea. A brand like this is e.g. Piz Buin.

    In almost all the stores we conducted our interviews in, the staff told us that Nivea is the most popular sun care brand. They also told us that the only thing that people who come to their stores think about is how high the SPF is. The negative side with Nivea is that its products have a SPF only up to 30 while Vichy and Avene have up to 50+. The only products that Nivea have with higher SPF are products for children. The fact is that people are not aware of how high of an SPF they should use and that is a reason for the popularity of Nivea, that it’s cheaper but don’t have high SPF on its products.

    For many people the price is the determining factor when they buy sun care products.

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    The most common answer in our survey for Nivea was that people think it is better than the average sun care products and that people buy it sometimes or every time. Only a few people, especially women in their 40s or 50s told us that they don’t think that Nivea is a good product and that they don’t buy it. A 36 year old man told us that he used to buy Nivea but that he got sunburned using it and that he now only buys sun care products from the drugstore, mainly Vichy or Avene. Another example of an answer that did differ from our other answers was a woman of 50 years of age who told us that she thinks Nivea is an unique brand.

    As an conclusion, Nivea is the most common sun care product that people use and this is because they think that they get good quality for less money.

Avéne

    Avéne is generally quite an unknown brand. This is mainly because it is sold only in drugstores and it doesn’t do a lot of advertising. Still Avéne has its own customer base that buys it regularly. People who use Avéne want to have a good protection against the sun or use it in extreme circumstances like at sea, in the mountains or in tropical countries. However, most people in our survey had never even heard of Avéne or thought of it as a neutral brand, but those who knew it thought of it as a good sun care product. No one was as familiar with the brand, or clearly preferred it to others as the case was with Vichy and Nivea. Those who knew the brand told us that they buy it regularly or occasionally. People thought that Avéne was a brand that was more focused on high SPF products.

    Many people don’t want to try Avéne because of its high price. Therefore it might be

    difficult for Avéne to expand its sales unless they market the product more or give people free samples of it. Many people thought of Avéne as an expensive special product. According to the drugstores we visited Avéne is Vichy’s biggest competitor.

Conclusion

    As a conclusion it is easy to say that people who want to have sun care products of higher standard tend to buy products of the likes of Vichy or Avéne. In most cases, the

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    choice falls on Vichy because it is a more recognized brand. On the contrary, people who don’t want to spend much money on sun care products buy Nivea. Many people thought of Nivea as a good product although it is cheaper and is not sold in drugstores. People who want to have sun care products with a better quality and more qualifications buy their products from the drugstore.

    Vichy is often associated with the mineral water its products contain and as a generally known good brand. Avéne is thought of as sun care products for extreme circumstances. And Nivea is thought of a good common sun care product. The differences between Nivea and the two more expensive brands are e.g. the time how fast you can go to the sun after you have applied the sun cream. Nivea’s products imply that you can go

    directly to the sun after you have used its creams while Vichy and Avéne recommends their consumers to wait up to 15 minutes before they go to the sun. Another difference are the SPF levels. Nivea have high SPF:s only for children while the two other brands have them for everybody. Vichy and Avéne also market their products with different patents that they have on their sun care products. Vichy and Avéne also have many more products than Nivea. It feels like Nivea only makes sun cream products to get them sold while the two more expensive brands make their products to protect people. According to Vichy, most people in e.g. Finland need an SPF level of a minimum of 30, which is the highest and the most expensive sun block that Nivea makes. Also Vichy and Avéne lotions remain on the skin even after you have been swimming. This is something that Nivea products don’t do as well. Many people are afraid that they don’t get suntanned as fast with the more expensive and more protecting products as with the cheaper and the ones with a lower SPF.

Commonly on sun care products

    People are becoming more and more aware of the importance of sun care products and especially good sun care products. Generally people think that sun care products cover their skin and protect them from burning themselves. Young people only think of the pain and the ugliness of sun burn, while older people think of the risk of getting melanoma or other related skin conditions. Many people use sun care products only

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