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By: Kristen Prazenica. What intrigues a woman to shop through a television network or infomercial?...
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Transcript of By: Kristen Prazenica. What intrigues a woman to shop through a television network or infomercial?...
What intrigues a woman to shop through a television network or infomercial?
Convenience Ability to shop at any time of dayNo sales pressureDemonstrations of product application
Why do we shop network channels?
PRICE“Sometimes they have great sales you can’t beat, to see the latest styles.” –
Age 26“The price and quality of the products.” – Age 37
RETURN POLICY“Great return policy and great prices.” – Age 49
CONVENIENCE“Convenience and price.” – Age 53
INFORMATION“Demonstration, testimonials.” – Age 43“I like the explanation of the products and the demonstrations.” – Age 33
BRANDS/PRODUCTS“Some of the products I buy aren’t available any other place that I’m aware
of.” – Age 59
The Generic Home Shopping Persona
Focused on price and value Impulsive shopperLargest segment purchasing is women aged 45-54 50% want savings on travel and gas costs 39% shop channel for discounted pricesEnjoy shopping at any time of day
The Infomercial Shopper Profile
Prefer prestige brands 38% see the product and purchase it online 29% view product and purchase it at a store Impulsive decision maker 40% shop between 10 p.m. and 2 a.m. More likely to purchase a new product from a familiar brand
Infomercial Shopper Continued
4 out of 10 woman awarenessMost viewers fall into 18-24 segment45-54 aged segment spent the most on
beauty ($138)18-24 year old segment $110 averageGrowing market, about 4 in 10 newcomers
doubling HSN newcomers80% tune in impulsively
Infomercial Shopper Continued
20% of Infomercial shoppers used channel for 5+ years
40% of Infomercial shoppers purchase through internet
3 in 10 Infomercial shoppers shop via internet
The TV Network Shopper Profile
Prefer prestige 38% see product and purchase it online18% view items and make store purchaseImpulsively tune in31% shop between 8 p.m. and 10 p.m.18% shop between 6 p.m. and 8 p.m.
TV Network ContinuedMost likely purchase new product from familiar
brand70% buy new from brands they already own
products fromPrime segment of viewers: 45-64 age range1 in 3 TV Network shoppers shop channel 1-4
hours per week
TV Network Continued50% of TV Network shoppers used channel
for 5+ yearsLess likely to shop on impulse vs. infomercial
shoppers (67% vs. 83%)More likely to plan tuning in times vs.
infomercial shoppers (33% vs. 17%)More likely to watch products on television
and purchase it online after vs. through phone
TV Network Continued59% see product on
TV, then purchase through internet
4 in 10 shoppers also shop with the internet
TV Network and Infomercial, a Worthy Channel?
Least likely market to gain new consumersStronger market for skincare & make-up More likely to purchase skincare (60%) vs.
body skincare (30%)Internet and fine department store shoppers
likely to cross-shop to this channelThe highest reported average spending
for beauty is cited as fine department stores ($117), TV Shopping Networks ($109), and Infomercials ($100)
QVC Shopping Market Profile
Highest purchases are make-up and skincareBetter market for make-up sales than HSN,
70% vs. 50% reported buyers80% of fans will shop/purchase if tuned in92% awareness level amongst consumersQVC turns 90% of viewers into regular
watchers
Home Shopping Network Market Profile
Highest purchases are make-up and skincareBetter purchase results in facial (63% vs. 48%)
and body skincare than QVC (47% vs. 36%)Fewer shoppers vs. QVCStrong make-up brands have a chance at
success Market awareness level of 84%
Ability of Consumers to find Beauty Products Conveniently
Through TV Networks82% mentioned not
shopping this channel 12% had no problem 6% unable to find productsA third of those shopping
this channel had a problem finding their desired purchases.
The Internet? Could be an asset to TV Networks!Provides flexibility
and interactivityAbility to watch
missed TV segmentsTV Network shoppers
more likely to watch products on television and purchase it online after vs. through phone
The biggest element is it brings an interactive experience to the consumer
“The Natural Perception”
“Pure, clean.”
“Free of chemicals.”
“Does not contain additives.”
No artificial ingredients.”
“Made from plant products.”
“It is safe to use.”
“Come only from natural sources such as plants. No chemicals.”
“All natural ingredients.”
What intrigues women to buy all natural products?Need for samples
and educationLow initial pricesProof it works
without the costJust as effective as
the current product
Common Phrases That Associate Consumer Perceptions to think “All
Natural”Terminology Rank %
Safe to Use on Your Skin 1 73
Made without dyes or additives 2 71
Product is healthier for you 3 66
Ingredients are mineral based 3 66
Manufactured without chemicals 4 63
Not tested on animals 5 29
Safe for the Environment 6 28
The Natural Market Potential
Distinct perception vs. organic, eco-friendly, and socially conscious brands is “safe for use on skin.”
Organic and eco-friendly advocates are easiest to convert to natural market
Greatest expansion in white women and segment 55+
Mass merchants and beauty specialty stores biggest sellers
Natural Product Age Segment Analysis
18-34 year olds Highest interest in natural products: 81% Most usage of natural lines: 68% Highest usage of all natural make-up:
45% Body skin: 43%, 2nd highest amongst
segments 27% (3rd highest) sun care interest 63% admitted to having a strong interest in
new beauty trends (highest of all segments)
42% mention “certified green” products of prime importance
56% willing to pay more for facial care products
50% willing to pay more for body care
Natural Product Age Segment Analysis
35-54 year olds80% interest in
natural productsTied for highest
usage of all natural make-up: 45%
Tied for highest usage of sun care: 29%
Natural Product Age Segment Analysis
55-64 Year Olds78% very interested58% actual usageHighest facial usage
user: 45% consumersLowest reported
interest in sun care products
39% interest in “certified green” products
65+ Year Olds 74% natural product interest 59% actual usage Highest sun care interest:
29% Interest in make-up, facial, and
body care products all about equal (39%, 41%, 40%)
Highest interest in naturally grown and organic products, (44% and 27%)
Willing to pay more for make-up, body, and skincare than other segments: (54%, 50%, and 51%)
Market Segmentation by Ethnicity
Whites (not Hispanics) Highest interest in “certified green”
products: 41% Make-up interest: 30% Facial, body care, and sun care
product interest: (35%, 33%, and 28%) 62% more likely to purchase product
with natural wording
Blacks (not Hispanics) Highest interest in “naturally grown” and
“organic” products”: 47% and 28% Strongest interest in facial skincare: 50%
consumers Equivalent interest in make-up and skin care:
(47% and 44%) Sun care interest: 28% 69% more likely to buy with natural wording Most likely to pay more for beauty products
across product types except sun care than other segments
Market Segmentation by Ethnicity
Hispanic MarketHighest interest in
“naturally grown” products: 43%
Strong desire to purchase facial skin care: 46%
Make-up, body care, and sun care product interest follows: (44%, 42%, and 36%)
Market Segmentation by Household Income
Under $25,000 Highest general interest in
beauty products: 40% Greatest interest in sun
versus other markets: 29% Equivalent interest in facial
and body care: 39% 69% more likely to
purchase product with “natural wording”
$25-000 to $44,999 34% general beauty
interest Highest interest in facial
care: 38% Rate body care, make-up,
and sun care importance: (37%, 31%, and 28%)
Market Segmentation by Household Income
$45,000- $74,99936% general interestHighest interest: facial
care 40%Out of all segments
most interest in sun care: 31%
Body care and make-up interest: (38% and 36%)
56% willing to pay more for make-up
$75,000+34% general interestHighest interest: facial
skin care 36%Close interests in make-
up, body care, and sun products: (34%, 33%, and 29%)
Most willing to pay more face, body, and sun care out of all segments: (60%, 52%, and 57%)
Fun Facts of the Beauty Market
72% of facial skincare purchases are planned91% of foundation purchases are pre-planned
(the top category in make-up sales)64% of Beauty Product Users would more
likely purchase product if NATURAL appeared on the label.
“Healthier” and “Free from chemicals and pesticides” are the two main reasons users choose natural
Biggest decline in spending: segment (18-24)
Where is the beauty market headed?
Make-up highest decline in purchasing
When asked, what type of product (skincare vs. make up vs. fragrance they would put $100 to) skincare won with 45% of votes
The All Natural Skin Purchaser Profile
2009 total Skincare segments: 74% feel mass brands are just as good as prestige
Sets/Kits had 10% dollar market shareExperienced +8% dollar growth+7% unit growth
Anti-aging, big seller! Claimed 40/50 top kit spots>50% buy on impulse<50% plan brand to purchase from
The Anti-aging Skin Consumer Profile
Type of Skin Product
% Change in Market $
Performance for Prestige
Anti-aging -4%
Face Cleanser -4%
Face Moisturizer -4%
Acne -11%
>50% of women are
86% strive for wrinkle reduction
74% seek firming/lifting
59% find products ineffective
“The consumer values BEST PRICE for the product GETTING A DEAL”
How do we get a female shopper to buy
and use?54% of women rely on friends, family, and
coworkers47% admit to being influenced by experts40% by magazine articles29% by internet and blogs12% by home shopping networks and
infomercials
Expansion in the “Sensitive skin”
Market49% of women have sensitive skin62% of 18-24 year olds 61% of all African American women
Consumers in this market favor hypoallergenic, fragrance-free, and SPF strong products
Kits are the most appealingRely on natural face care products the mostMost likely to purchase from companies that
give back to charities
Ways to fuel innovation in SkincareThe Key, Mass Acceleration Innovation
Unique delivery systemsSpecializationAnti-aging winnersTools“CONSUMERS VALUE BEST PRICE FOR THE
PRODUCT GETTING A DEAL.”
Skin Care SummaryConsumers are beginning to cut back on beauty
purchasingShifting to preferences of interaction/personal
engagement before making purchaseSkincare has gained in relevance to consumersMake-up has declined in the eyes of the consumerKits are a hot commodityAnti-aging is a strong market that is not decliningMost decisions to purchase are made on impulseWomen are remaining faithful to their brands