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Target Hair Color

Target Hair Color. Target Hair Color. Case Competition . Hair Color Background: State of the business. 1. Nationally, the Boxed Hair Color business is declining. Nationally : -1.3% during the last 52 weeks Target : -2.1% during the last 52 weeks

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Target Hair Color

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  1. Target Hair Color Target Hair Color Case Competition
  2. Hair Color Background: State of the business 1. Nationally, the Boxed Hair Color business is declining. Nationally: -1.3% during the last 52 weeks Target: -2.1% during the last 52 weeks 2. Target has historically won in beauty categories but dollars are leaking to Salons, “e-Salons,” and the emerging Dollar Channel. 3. Target’s website capabilities have lagged those of its top competitors: Amazon.com and Walmart.com. 4. Additionally, Target is experiencing reduced store traffic due to the Holiday 2013 Credit Card Data Breach. Please refer to the attached Kantar article for more detail. Total US Color sales declined 4% from 2011-13 Boomers leaving faster than Millennials entering; Leakage to Salon 2013
  3. Hair Color Background: Declined guest count Dollar sales are driven by the following 4 buckets: During the latest 52 weeks, hair color guest count has been down -3% and is declining 3x faster than the total beauty category. If guest count continues to decline by -3%, total sales are also at serious risk of declining at an increased rate. Average Retail Price Guest Count Trips/ Guest Units/Trip
  4. Hair Color Background: Barriers to entry Research has shown that the following are major barriers for the category: 1. Damaging Hair 2. Selecting Wrong Color 3. Inconvenience “I’m afraid” “I’m overwhelmed” 35% of people select wrong color
  5. Hair Color Objective: Return the Category to Growth The clock is ticking and guest counts are continuing to decline due to: shifts to salon, “e-salon”, competitor activity, and shoppers simply no longer coloring their hair. How would you help Target understand how to bring shoppers back into their hair color aisle? Thought starters on ways to impact the store: Think about ways to leverage/enhance: (1)target.com (2) social media (3) mobile apps (4)out-of-store marketing (5) in-store education/marketing/shelving
  6. Appendix: Target’s Guest Profile 40 years old Household income of $65,000; Over 33% above $75,000 36% have children at home 65% have pets at home 57% completed college 78% are women 80% are married
  7. A Appendix: Hair Color Shoppers Efficient Emily Flawless Fiona Sensorial Sally B A B She wants the end result but also takes time to stop and smell the roses. She values the journey as much as the end result and is willing to try new products. She quickly reaching her end results, not so much the means. With end color being her sole concern, she’s an ideal shopper to focus on increasing frequency. She prioritizes perfect results before efficiency. She’s willing to put forth the effort to look her absolute best. Regimen is her best friend.
  8. Appendix: Hair Color & Non-Hair Color Shoppers 47 Avg. Age 45 38 35 US
  9. Appendix: Hair Color’s Competitive Landscape
  10. Appendix: Target’s Competitive Landscape Dollar General- “Save time. Save Money. Every day” Pro: Value perception Relatively new to the market- room to grow Con: Shopping experience Limited selection Salons- Pro: Trust in stylist selecting the right color Perception of less damaging color Convenience Con: Price- can be > 10x more expensive than boxed color Wal-Mart- “Save Money, Live Better” Pro: Value perception Walmart.com platform Con: Shopability of shelf is not best in class Target- “Expect more pay less” Pro: In-store shopping experience In-Store beauty concierge in 500 stores Product differentiation with special packs and in-aisle color wheel Con: Target.com High price perception
  11. Appendix: Guest Barriers Barriers for Non-Users Frustrations of Current Colorers Source: Ipsos 2013
  12. Appendix: Hair Color 101 Color Segmentation by Level BLEACH PERMANENT TEMPORARY SEMI PERMANENT DEMI PERMANENT Based on the Color Length PERMANENT 6-8 WASHES PERMANENT 24 WASHES 1-3 WASHES
  13. Appendix: Hair Color 101 Shade = Level & Tone(s) Level Tone 10 Permanents can lighten non-colored hair up to 2 stages lighter Hair lighteners and highlighting products up to 4 stages of lightening Grey will show the tone you are adding. It has no colour itself and once dyed will look lighter and more vibrant.
  14. Tone Descriptor Neutralises 1 Blue Ash Orange 2 Green Ash Red 3 Yellow Violet 4 Orange Blue 5 Red Green 6 Violet Yellow Stages of Lightening Hair Appendix: Hair Color 101 Dark Brown Medium Brown Light Brown Existing color Dark Blonde
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