Teen Body & Skin Care Brand Analysis

Part
01
of six
Part
01

SWOT Analysis - Axe

Axe's strong brand appeal, a wide range of grooming products and an extremely powerful connection with the youth are its key strengths. The company has, however, been involved in some controversial and sexist advertising in the past and lost market share in recent years. The growing organic deodorant market and the use of AI in the deodorant industry are some opportunities that the brand can look forward to leverage. Below is the detailed SWOT analysis of the company.

Strengths

  • AXE has a unique value proposition in the market and is the #1 men’s fragrance brand in the world.
  • It is among the few brands positioned as a lifestyle brand that appeals to both boys and girls through unique experiences, unlike any other brand.
  • One of the key strengths of the company is its wide range of products. It provides a full line of grooming products including body sprays, deodorants, antiperspirants, body washes, shampoos, and styling products, thereby making it a go-to solution for the youth.
  • The brand has been in existence for over 34 years and is present in over 90 countries across the globe, thereby providing it with a wide reach and an extensive market.
  • The brand is associated with Ann Gottlieb who is a popular international fragrance developer and creates all fragrances of Axe. This makes the company's products stand out among its competitors, thereby adding on to its strength.
  • Axe is an HUL brand and thus enjoys an extensive distribution network and a fantastic brand recall. It is distributed parallel to all other products of HUL.
  • The company's attention-grabbing youth-centric advertisements and branding are its other key strengths and stand out features. Its ability to effectively connect with the youth through social and digital platforms has helped the company become the most favored 'Body Spray Brand' in the majority of the markets it operates into.
  • The brand to effectively connect with teenage boys and build on its strengths has taken to influencer advertising and has collaborated with the DJ and influencer Martin Garrix, whose videos regularly get upwards of 900 million views.
  • In addendum, as part of its marketing efforts to teen boys, the company recently renewed its #AXEpressYourself campaign for a second year to urge teenage boys to feel confident about their appearance. It engaged "Stranger Things" star Gaten Matarazzo for the campaign.

Weaknesses

  • One of the key weaknesses of the company is its limited target market. The brand primarily caters to the age group 16-25, which restricts the sales growth and market expansion opportunities for the company.
  • The company's advertisements and promotions are primarily targeted towards urban youth and lack appeal for the rural youth which again stymies the growth potential and connectivity for the brand.
  • The company's market share globally has been on a declining spree. According to the Nielsen data, the company's market share fell to 8% during January-September 2018 from 8.9% in 2016.
  • The company has been involved in some controversial advertising campaigns including negative and sexist advertising. This has impacted the company's brand value, thereby compelling the brand to overhaul its marketing strategy.

Opportunities

  • The proliferating global market for antiperspirants and deodorants presents a colossal expansion opportunity for the brand. The global deodorant market is expected to grow at a CAGR of 4.12% between 2018 and 2024, primarily driven by the youth population, where the brand has a strong foothold.
  • The organic deodorants market presents a potential diversification opportunity for the company. The global organic deodorant market is expected to grow at a CAGR of 14.1% from 2019 to 2025 and hence Axe can focus on introducing organic deodorants to tap the consumer’s preference for chemical-free hygiene products.
  • The companies operating in the fragrance market have started exploring AI for product compositions and discovering new ingredient combinations with machine learning. Such advanced and disruptive technologies present an excellent growth opportunity for Axe.
  • The company also has an opportunity to tap the limited edition deodorants and perfumes segment akin to some of its global competitors like Fogg. This will also enable the brand to garner a premium positioning.

Threats

  • The deodorant space is highly competitive and the company faces threat from the various established global brands such as Burberry, Old Spice, etc as well as new local entrants such as Fogg. In addition, several ensconced brands like Adidas, Reebok, Nivea etc have also diversified into the deodorants segment adding on to the competition.
  • The seasonal and cyclic nature of the deodorant business also presents a revenue threat for the company. Since the industry sales tend to go up during summers and wane during other seasons, the company is faced with the threat of irregular cash flows and working capital challenges.
  • Deodorants have been linked with adverse health effects, which could have a detrimental impact on the antiperspirants market. Consumers are becoming aware of the impacts of chemicals on human skin and are opting for organic products.
Part
02
of six
Part
02

SWOT Analysis - Art of Sport

As a body care company that provides direct-to-consumer skincare products to athletes, Art of Sport products are formulated by the world’s leading athletes and scientists in line with the wants and needs of athletes. Like any other organization, Art of Sport has its strengths, weaknesses, opportunities, and threats.

Strengths

  • Art of Sport appeals to a wide audience of athletes in the U.S. A review on the company’s profile on LinkedIn shows that its founders include a seasoned athlete, Kobe Bryant . Thus, they already have an established network of the target audience in the sports industry
  • Art of Sport range of products is a unique concept, as there are only a few of these products that specifically target athletes and even most of the other products that have “Sport” branded on the packaging, are hardly authentic with their formulations. Thus, there is minimal competition for the company.
  • Art of Sport does not just focus on a single product, but a wide range of products, which can be beneficial in raking in more profits for the company. The product line includes antiperspirant sunscreen, deodorant and hair and body wash, among others.
  • A review of the company’s profile on LinkedIn shows that Art of Sport partners with world’s renowned athletes to create products that appeal to its target audience.
  • The company also uses seasoned athletes such as James Harden and Ryan Sheckler, among others, to test their products to ensure that they are athlete-friendly. This puts the company at an advantageous angle as it is in a better position to understand its market.
  • The products are affordable as they start from $8.95 each, making it easier to sell even to teen boys who do not have much money to spend on the body and skincare products.

Weaknesses

  • Art of Sport line of products has focused on only one audience, athletes. As such, it misses out on a broader audience that includes non-athletes.
  • Art of Sport main audience is in the U.S., thus missing out on opportunities in other parts of the world, such as the U.K, where the skincare market is already gearing to grow by 2.8%, between 2020 and 2023.

Opportunities

  • Art of Sport has an opportunity to expand its line of products to appeal to an even greater market of athletes. By adding products such as winter sports skincare for athletes, the company can widen its market and profit margins
  • Art of Sport has the advantage to reel in professional athletes to market their products and give reviews and suggestions on how to improve or expand their line of body and skincare products for athletes.
  • Art of Sport has an opportunity to expand its market size by appealing to audiences outside the U.S. While the brand is relatively new, it should seek to penetrate other markets such as the United Kingdom for an expansive profit margin. The skincare market is predicted to hit $24.37 billion in the United Kingdom by 2024.
  • Art of Sport has an opportunity to expand its market size by appealing to include audiences such as teen boys, most of whom are struggling with skin problems such as acne, pimples and dry skin.

Threats

  • While skincare and body products that specifically target athletes are a relatively unexploited market, there is a new trend that includes the personalization of skincare products. This personalization is growing exponentially and this may increase competition, therefore, making Art of Sport struggle with establishing a new clientele. The competition is expected to grow even stiffer, especially now that key industry players in the skincare market are planning mergers and acquisitions.
  • The FDA has imposed bans on various formulations that are used to create skincare products. Out of the 16 chemical ingredients, the FDA has banned 14 of them that are used to formulate sunscreens. This can limit companies such as Art of Sport in creating and distributing their products.

Research Strategy

While there is a lot of information regarding skincare and body products on the internet, finding information that specifically focuses on the sports skincare range proved to be a bit of a challenge. We browsed through various skincare and body product websites such as Aveeno, social media pages such as LinkedIn and Instagram. Most of these sites were only focused on general beauty products, especially for women. The other challenge was finding data points of skincare products for teen boys. We perused through sources such as GQ that focus on physical appearance about men. Most of these sources, however, focused on advertising specific skincare products for adult men, and hardly discussed skin care products for teen boys. The official Art of Sport website was not of much help either, with teen boys skincare products.
Part
03
of six
Part
03

SWOT Analysis - Harry's

Harry's is known for its high-quality grooming products, which are sold to its consumers at an affordable price when compared to its competitors. It does not only focus on e-commerce but has also delved into brick-and-mortar stores sells, which positions it to intensify its competitiveness as many of its major competitors have also launched their e-commerce platforms.

Strengths

  • Harry's products have maintained its high-quality and have continued to sell at prices affordable to its customers. This has distinguished it from its competitors whose product, though have good quality but is barely affordable to the customers.
  • The unique strategic marketing plans of Harry's aided its penetration into the US market, thereby disrupting the men's grooming market in the US. The company is not relaxing in propagating high-quality products for affordable prices.
  • Harry's now sells on retail stores, which has increased its reach across a more extensive customer base in the US. The company started with a major focus on e-commerce but has also brought their products to sell at retail outlets.
  • Harry's has joined forces with Edgewell in the recent acquisition of Harry's by the later to boost their business in the US market.
  • The company has a very high review (4.8 stars, from over eight thousand reviewers) among its customers when compared to that of their competitors.

Weaknesses

  • Although the average review of Harry's products is high on different review platforms, there are serious negative comments which were recurrent among some customers about the quality of their razor blades.
  • Also, many of its customers raised the concern of their poor responsiveness when issues of bad products are raised to the company. It has been labeled by some customers to have poor customer service relations.

Opportunities

  • The market of men's grooming has become more competitive as major players are beginning to expand in their product lines. Harry's is not left behind since it has expanded its product too from razor and shaving creams to include bath and shower, and skin care.
  • There is an opportunity for Harry's to also expand its product offerings to include products such fragrance and deodorants as these are increasingly gaining popularity in men's grooming market.

Threat

  • Its competitors, whose primary channel for sales were brick-and-mortar stores, have intensified their e-commerce market. Thus, the companies are into competition with Harry's on both online and offline basis.

Research Strategy

To do a SWOT analysis of Harry's, your researched team searched through the company's websites, press releases, industry reports, media publications, news articles, and review websites. We were able to gather relevant information that addressed the data points precompiled and have used them to compile a SWOT analysis for Harry's.
Part
04
of six
Part
04

SWOT Analysis - Native

Native has the expertise and resources of Procter & Gamble at its disposal. Increased demand for clean products by customers will create opportunities for natural brands like Native.

Strengths

  • Native offers free shipping, free returns and a choice to buy just once or subscribe for consistent supply.
  • Natural deodorants at Native cost $12 while others from competitors cost much more.
  • They have numerous followers on social media with 122k followers on Instagram, 3.4k followers on Twitter and 178k followers on Facebook.
  • Procter & Gamble (P&G) acquired Native in 2017. With this acquisition, Native is able to use P&Gs expertise in product innovation and customer happiness to grow.
  • On its website, Native offers customized deodorant scent to its customers based on their personality.
  • Their teen deodorant is made with gentler formula suitable for more sensitive skin and also has the normal protection level of the regular Native deodorant.

Weaknesses

  • Native doesn't have a lot of retail footprints as 50% of its revenue comes from direct-to-consumer sales.

Opportunities

  • The global natural cosmetics market is expected to grow to $54 billion by 2027 and factors driving this growth include "retailers’ shift towards the offering of premium personal care products, expansion of distribution channels, new product development, advertisements, and increasing spending capacity of consumers".
  • According to a study by Future Market Insights, " the natural cosmetics market is projected to grow at 4.9% volume CAGR through 2027". Increased consumer concerns about chemicals in cosmetics, demand for natural ingredients and increased knowledge of the benefits of natural products will drive the demand for natural products.
  • There is increased customer demand for clean natural products prompting retailers to increase their natural beauty offerings. This gives brands like Native the opportunity to expand their retail footprint.

Challenges

  • One challenge Native is likely to face as a natural product is customers' increased demand for transparency. There will be increased demand for safety and clear communication of product benefits in terms of ingredients, branding, and packaging.
Part
05
of six
Part
05

SWOT Analysis - Old Spice

Old Spice has been a brand with a strong reputation since it was launched more than 80 years ago. Despite this, the brand is facing challenges as some of its consumers claim that Old Spice products given them chemical burns and rushes. A SWOT analysis of Old Spice has been provided below.

Strengths

  • Despite being in the industry for 82 years, Old Spice is constantly reinventing itself to appeal to the younger consumer. The company is focusing on expanding its product portfolio by introducing new offerings such as Ultra Smooth.
  • Another key strength for the brand is its reputation. Old Spice has worked towards maintaining its reputation as one of the grooming authorities by introducing fresh fragrances that cut across its demographic of 35 to 55 year-old men.
  • Old Spice uses high-quality ingredients in its products. For instance, Ultra Wash is an aluminum free deodorant that lasts long but has a subtle smell.
  • Old Spice continues to use brand ambassadors who appeal to its demographics. The brand has used celebrities, such as Deon Cole and Keith Powers to appeal to its target market. The use of these ambassadors has enabled Old Spice to reach younger consumers.

Weaknesses

  • Old Spice is primarily associated with the older generation, which makes it difficult for it to fully penetrate the younger demographic.
  • Thousands of Old Spice customers have claimed that the products give them rashes and chemical burns.
  • Old Spice changed its original smell, which has resulted in the brand losing some of its older customers who loved the brand when it first came out.

Opportunities

  • Deodorants continue to be in high demand in Western Europe and the Americas. Daily grooming routines have become popular among teenagers, which presents a new market for Old Spice.
  • Male grooming has been on the rise resulting in a high demand for antiperspirants. Therefore, the deodorant market is not saturated, which means that Old Spice has room to further grow its brand.
  • The deodorant market is expected to grow by approximately $747.92 million between 2019 and 2023, which presents an opportunity for Old Spice to significantly increase its market share.

Threats

  • Despite having a reputation as a leading brand when it comes to deodorants, there is a $5 million class action lawsuit against Old Spice. The lawsuit could have a detrimental impact on the brand's reputation.
  • Deodorants have been linked with adverse health effects, which could have a detrimental impact on the antiperspirant market. Consumers are becoming aware of the impacts of chemicals on human skin and are opting for organic products.
Part
06
of six
Part
06

Teen Body Care - Social Media Review

Insofar as it was possible, we have provided the requested details in the project spreadsheet. However, few of the selected companies appear to have any ads targeted specifically at teen boys, as explained below. After an explanation of the spreadsheet, we have posted the insights gleaned from our study of the project Dropbox.

Spreadsheet

  • The project spreadsheet can be found here.
  • Certain brands do not appear to market directly to teen boys in one or more of their social media pages. That is to say, nothing in their marketing excludes or would repel teen boys, but we were unable to locate instances where the advertising and/or post seemed directed to them. We have included representative ads in the spreadsheet, but will also list the companies and the platforms below so that they can be easily removed if desired.
    • Art of Sport's Facebook and Instagram
    • Any of Native's social media
    • Any of Harry's social media
    • Anthony's Twitter and Instagram
    • Any of Dove Men's Care's social media (they instead focus on marketing to fathers)
    • Any of Dollar Shave Club's social media
    • Any of Jack Black's social media; additionally, their Twitter feed is updated rarely and does not have any targeted marketing at all.
  • In addition, Adidas Body Care does not have its own social media presence, so we searched the main Adidas Facebook, Twitter, and Instagram pages. However, we did not find any posts relevant to their Body Care line, let alone targeted at teens. Therefore, we have put N/A into the appropriate cells.

Below are the insights derived from the sources in the project Dropbox. As all insights come from the same pool of provided sources and we also find significant overlap in the insights provided in these sources, we will forego our usual practice of providing inline citations. Direct quotes and stats will be attributed appropriately, however.

Gen Zers Are Digital Natives

  • To quote Into Z Future, "What Gen Zers all have in common is an intuitive relationship with social platforms and digital tools that are continuously evolving. Gen Zers are overwhelmingly embracing new digital tools and features from platforms like Snapchat, but many also recognize the need to take a break from the internet’s immersive influence and wield the creative power of the analog and IRL."
    • For example, a Gen Zer artist might hand-draw an illustration and then overlay it with digital imagery.
  • Their familiarity with tech extends to learning how it works and adapting it to their purposes; 27% have hacked an app to do something beyond its normal function, e.g., adapting an audio app to enable it to layer in music.

Knowledge and Activism

  • They have had access to more information at a younger age than any other generation, and as such are very aware of both events and cultural expressions from all over the world, which they incorporate into their social media.
    • As a result of this awareness, 90% have a political or social cause they are passionate about, most commonly climate change and border control.
  • Consequently, they are more likely to buy from and develop loyalty to brands that promote their values and support their causes. However, only 12% remember the association between a brand and its pet cause, so brands have to make their activism stand out.

Social Media Addiction

  • Generation Z is almost infamously active on social media, with a Gartner brief noting, "Gen Z expects all media to be social media, and shopping platforms are no exception."
  • 90% of Gen Zers are on Snapchat and 95% of those say the app makes them happy. Amy Moussavi, global head of consumer insights for Snapchat, attributes this to the app not keeping a record of past posts. "We’ve seen this has unlocked an online community without judgment or social currency."
    • However, only 41% call Snapchat their favorite platform, with Instagram (35%) being a close second. Gen Z's favorite platform by far, however, is YouTube, which they use as much to educate themselves and learn new skills as they do for pure entertainment.
    • Few prefer Twitter, Facebook, or Pinterest. However, while they have clear preferences, Gen Zers typically navigate multiple platforms and while engagement with Facebook is flattening, it hasn't died out.
  • Ironically, while Gen Zers believe that social media connects them with others, this generation is more anxious and more lonely than those which came before. Nearly half admit that "likes" on social media make them feel better about themselves. This means that they are only likely to share branded content if they believe it will result in positive feedback.

Top Values

  • According to Gartner, the top 10 values for Gen Z are:
    • Happiness
    • Success
    • Equality
    • Loyalty
    • Authenticity
    • Courtesy
    • Compassion
    • Sustainability
    • Enjoyment
    • Purpose
  • Generation Z, having seen the difficulties faced by Millennials during the recession, assign far less importance on values like adventure, purpose, and discovery.

Creativity and Authenticity

  • Gen Zers are more interested in using social media creatively than practically. They post visual art, music, and writing. One survey found that while 56% of Gen Zers use social media to express their creativity, only a fifth are using it to create a personal brand.
    • Another 60% say that their output "represents the real, everyday version of themselves," and the generation famously considers authenticity — that is, living in the moment and being yourself — to be incredibly important.
  • Thus, Gartner offers two key pieces of advice in reaching Gen Zers with a digital marketing strategy:
    • Lead with visual product information channeled through Gen Z’s top social media platforms, rather than rely on the verbal cues that work for other generations.
    • Root all digital experiences in a sense of community that enables self-expression. For Gen Z, even online shopping requires the promotion of individuality through distinctive product discovery and curation — far beyond mere ease or convenience.
  • Several brands, including Adidas and Foot Locker, have found success marketing to Gen Zers by engaging them in the product design process.


Sources
Sources

From Part 02