Soap & Glory

Part
01
of three
Part
01

Soap & Glory - Company Analysis

Soap and Glory is dedicated to providing affordable beauty products for women between the ages of 16 and 30. The company has products in 5 categories that can be bought at Ulta, Walgreens, Target and the Skinstore. Below are details of the company's offerings.

SOAP AND GLORY MISSION

SOAP AND GLORY PRODUCTS

SOAP AND GLORY AUDIENCE

  • The company targets their marketing toward women between the ages of 16 and 30.
  • In addition, their marketing targets women who have already expressed an interest in cosmetics or skincare.

SOAP AND GLORY CUSTOMERS

  • The company's actual customer market is women between the ages of 18 and 25.
  • Research conducted by Walgreen's has shown that Soap and Glory products sell most often to Millenials and sometimes to Gen X.
  • The company's customers are mostly Caucasian females with no kids that make over $125,000 annually.

SOAP AND GLORY STORES

  • The company has products in the following stores in the United States: Ulta Beauty, Walgreens, Target, and Skinstore.
  • Their products can be found in hundreds of these stores across all 50 states.
Part
02
of three
Part
02

Soap & Glory - Competitor Analysis

Benefit and Urban Decay are the main competitors of Soap and Glory in the beauty and cosmetics space. The brands offer the same line of products and are interested in the same target audience (women). More information on the topic has been presented below.

1. BENEFIT

MISSION AND GOALS

  • According to Benefit's website, the company's mission is “to turn every gal's beauty from upside down." They also state, "Our innovative instant beauty solutions express our unique DNA through laugh-out-loud names and creative packaging.”
  • The company’s goal is to create one-of-a-kind products that solve everyday beauty dilemmas, are fulfilling, and create a laughing atmosphere.
  • The company believes that laughter is the best cosmetic. They also believe in "grabbing life by the giggles."

TARGET AUDIENCE

  • The company is targeting the younger generation of girls who are at a self-discovery stage.
  • Their brand ambassadors are Maggie and Annie Ford Danielson. They go around the world to spread Benefit's message and deliver laughter to girls.
  • The company also targets the communities of women who believe that taking care of themselves goes hand in hand with good humor.

TYPE OF PRODUCTS

  • Benefit has products in various categories, including face makeup, eye makeup, skincare, and value sets & kits.
  • Some specific products of Benefit include bestsellers such as the multi-functional cheek and lip stain called Benetint and the matte bronzing powder called Hoola.
  • Facial serum, facial cream, eye cream, face moisturizer, facial wash, toning lotion, makeup remover, facial cleansing exfoliator, and moisture prep toning lotion are some examples of Benefit's products.
  • Face primers, brow pencils, brow gel, mascara, cheek palette, eye shadow palette, eye pencil, liquid eyeliners, powder foundation, brightening foundation, and bronzing powder are some more examples of Benefit's products.

MARKET PERFORMANCE

  • Benefit Cosmetics is strongly positioned in the beauty and cosmetics industry.
  • According to Rena Gillen, the director of global public relations and communications at Benefit, the company is the world’s number one brow brand, based on estimated total retail sales in global prestige brow products in 2017.
  • Industry experts’ projections showed that Benefit's sales in the brow category could have hit $600 million in the 2018-2019 financial year.
  • The company has achieved growth in sales through strategic marketing solutions that appeal to its target audience. The company maximizes on campaigns that have been monumental in creating more brand awareness.
  • In 2018, as a follow-up for its browse campaign, Benefit developed the Programmatic Direct Mail that was focused on increasing online sales conversions of its eyebrow products.
  • Mid-campaign results in 2018 showed a 37% uplift in the online sales of eyebrow products with an average customer value of over £40.
  • The campaign also yielded an increase of over 28% in engagement levels.

WHY BENEFIT IS A KEY COMPETITOR

  • Benefit is a key competitor because it operates in the same industry as Soaps & Glory (personal care/beauty and cosmetics industry).
  • Additionally, some product offerings of both companies are the same. They also target the same audience in the beauty and cosmetics space.

2. URBAN DECAY

MISSION AND GOALS

  • Operating in the beauty and cosmetics industry, Urban Decay is “committed to challenging the stereotypical notions of beauty by providing women with vegan friendly and cruelty-free beauty products in the alternative makeup colors they crave.”
  • Urban Decay’s goal is to inspire beauty with an edge through high-performance cosmetics "in an insane range of shades created by makeup junkies, for makeup junkies."

TARGET AUDIENCE

  • The main targets of the company are the women aged 18-35 who heavily engage in online activities, relish their individuality, and dare to express it.
  • Urban Decay was specifically targeting young women who wanted more choice and color options.
  • The brand is also interested in millennials who are tech-savvy and use the internet and social media very often.

PRODUCTS

  • Some eye products by Urban decay include eyeshadow, eyeshadow primer, eyeliner, mascara, brows, false lashes, and eye brushes.
  • Their face products include foundation, makeup setting spray, face powder, blush & bronzer, highlighter, concealer, makeup primer, prep spray, makeup prep, makeup remover, and face brushes.
  • Their lip products include lipstick, lip gloss, lip pencil, and lip brushes.

MARKET PERFORMANCE

  • Urban Decay is considered the number-one-selling eye-shadow brand in the United States.
  • The book titled 'Alice in Wonderland Book of Shadows' sold out before it arrived in stores.
  • In 2014, Urban decay sold more than five million “Naked” palette (its world-famous product).
  • Urban Decay’s strategic marketing involves the promotion of online content through its website and social media platforms, such as Twitter, Pinterest, Instagram, and Facebook.

WHY URBAN DECAY IS A KEY COMPETITOR

  • Urban Decay is a key competitor because both brands work in the personal care/beauty and cosmetics industry.
  • In the beauty and cosmetics space, the two brands have similar product offerings, and both brands target women.

RESEARCH STRATEGY

We started the research by searching through industry publications to find useful information on the major players in the beauty and cosmetics space. After reviewing multiple databases, we found some players listed as the competitors of Soap and Glory. A presentation on a website called Issuu highlighted that Benefit is a major competitor of Soap and Glory. We also found another source that listed the competitors of Soap and Glory, based on the products and price offerings. The competitors in the article included L’Oreal, Maybelline, No.7, bareMinerals, Max Factor, and Smashbox. Although the article is about four years old, we decided to retrieve some useful information from it because the article has also been referenced in recent publications.

Thereafter, we visited each of the competitors' websites and narrowed down our search to Benefit and Urban Decay. We decided to use the two brands in this research because they operate in the same industry, target the same audience, and offer similar products as Soap and Glory. Even after searching across the brands' websites, SEC filings, market reports, press releases, and third-party expert blogs, we were not able to find the financial details of the companies. We concluded that the details are not disclosed for competitive reasons. However, we found some information related to the market performance of the brands from industry publications, market research databases, and credible third-party websites. Since we found the market-related information, product offering, target audience, and working industry of the two brands, we went ahead with concluding the two brands as the main competitors of the Soap and Glory brand.
Part
03
of three
Part
03

Soap & Glory - Industry Analysis

The US personal care market, which includes product classes like skincare, cosmetics, personal hygiene, toiletries, and other similar products, was valued at $134.26 billion in 2016 and is expected to grow at a 4.58% CAGR from period 2018-2025. Makeup and skincare are the strongest performing product classes, with skincare accounting for the largest segment.


INDUSTRY MARKET ANALYSIS

MARKET SIZE AND GROWTH RATE
  • According to a Grand View Research report, the personal care market in the United States was valued at $134.26 billion in 2016.
  • This industry consisted of a very diverse range of products which can be segmented into different categories like cosmetics, skincare, personal hygiene, toiletries, oral care, and many more.
  • As per the Grand View Research report, it is projected that the personal care market will grow at CAGR of 4.58% over the period from 2018 to 2025.
  • Kline Group provided a segment analysis of this industry. According to the report, makeup, multicultural hair products, and skincare each recorded a 6% growth rate.
TYPICAL PRODUCT SOLD AND GROWTH DRIVERS
COMPETITIVE LANDSCAPE
  • Reports state that companies such as Estee Lauder, L’Oreal, Procter and Gamble, Unilever, Johnson and Johnson, Colgate-Palmolive Company, and Avon Products are still the key players in this market.
  • In fact, 60% of the market share comes from large companies where L’Oréal leads the market, followed by Unilever as the second-largest player and Estée Lauder ranks third. Procter and Gamble was formerly ranked second but is currently in the fourth position. However, a report shows that small brands such as indie and private labels are transforming the retail landscape of US cosmetic and toiletries industry. The shifting preferences of consumers for product innovation, packaging, and brand personalization are driving the market.
  • This is verified by another report that discusses small beauty brands and the significant impact they have, sometimes outperforming more prestigious brands. Mass retailers such as Target, Walgreen Boots, and CVS are now gravitating toward indie and small beauty brands.
  • Walgreens, in fact, shifted from legacy brands in "favor of homegrown brands No. 7 and Soap & Glory." This is why Soap and Glory has had such incredible success. These types of brands are new to the space but created "interesting and functional products" that consumers can connect with.
STRUGGLING AND EXCELLING MARKET
  • As mentioned, makeup and skincare are the strongest performing product categories. It is predicted that there will be continued growth in these segments for the next five years.
  • Haircare is stated to be the slowest-performing product class. While multicultural haircare is the fastest-advancing category, the overall haircare segment is struggling with reformulating the existing hairlines due to shifting demands to more natural infusions.
INDUSTRY CONSUMER DEMOGRAPHICS
Sources
Sources

From Part 03
Quotes
  • "The U.S. personal care products market size was valued at USD 134.26 billion in 2016 and is expected to grow at a CAGR of 4.58% over the forecast period. "
  • "The personal care products include products used for skincare, haircare, personal hygiene, make-up, fragrances, oral hygiene and other purposes. Some of the personal products are anti-aging creams, shampoos, conditioners, baby personal care, male toiletries and feminine care. "
  • "Demand for personal care products is increasing due to increasing purchasing power of millennials and significant players undertaking acquisitions and divestments to remain competitive. In addition, increasing demand for the anti-aging products is propelling the growth of this market. "
Quotes
  • "Governed by rapid changes and constant newness, the U.S. cosmetics and toiletries market is picking up the pace in 2017, growing by almost 1% faster than in 2016."
  • "Makeup and skin care remain the strongest performing product classes, each recording solid growths of approximately 6%. The desire for flawless skin helps the facial skin care category record its strongest growth in the last five years of 7% in 2017."
  • "Hair care is the slowest performing product class; however, multicultural hair care continues to be fastest advancing category, recording more than 6% growth in 2017, albeit constituting the largest proportion of the total."
  • "Sales of cosmetics and toiletries in the United States are projected to grow at a CAGR of 4% by 2022. Both makeup and skin care are expected to continue driving the market over the next five years."
Quotes
  • "This is a constantly evolving environment, from changes and innovations in products and packaging, to up-and-coming indie brands and those with cult-like followings, to the transformative retailing landscape."
  • "Consumer preferences evolve and shape all the time as consumers become increasingly demanding in their preference for products that cater specifically to their needs. This is evident in various mega-movements that we have seen over the past several years, from inclusive beauty and male grooming to personalization."
  • "Brands – both small, indie brands such as Briogeo and large cosmetics giants such as Lancôme – respond to this growing movement."
  • "Pop-up stores, specialized beauty stores, stores with new and personalized concepts and even online-exclusive brands extend their footprint in brick-and-mortar stores to attract young, experimental consumers."
Quotes
  • "Indie beauty brands haven’t just had a significant impact on the prestige and direct-to-consumer segments. At the nation’s mass-market stores, they’ve nudged out legacy brands to score prime real estate."
  • "The drugstore company invested in the subscription service last year and rolled out Birchbox in-store formats to select locations. In addition, the chain has shifted legacy brands away from entry-shelf displays in stores in favor of homegrown brands No. 7 and Soap & Glory."
Quotes
  • "Private label started mostly as national brand equivalent offerings, but has evolved into something so much more powerful. At Orchard, we shop different markets and have always looked to Boots as a leader in private label. "
  • "The success of brands such as No.7 and Soap & Glory is incredible. These are iconic brands that most consumers would never know were owned by the retailer."
  • "In many ways, these [private] brands are like indie brands. They are new to the space, and they have to capture the same audience in what can sometimes be a noisy environment."
  • "They have to create interesting and functional products that are not only worth using but are unique enough to shine. Private label or indie, it’s about creating a brand that consumers can connect with."