consumerbehaviorpaper

Buyer Motivation & Consumer Behavior

Better Hair(Shampoo & Conditioner with Vitamins)

Presented By

Samantha Jenkins

The Product

Better Hair: Shampoo and Conditioner with Vitamins

Contains:

o Biotin (coenzyme and a B vitamin)

Keeps hair and scalp healthy

o Panthenol (B vitamin)

Adds body and volume to hair

o Jojoba (oil that is extracted from the Jojoba plant’s seeds)

Helps hair grow and repair split ends

Shampoo and conditioner will come in 12 fl oz plastic bottles.

Can be sold in multiple outlets

Compatible with all types of hair

Situation Analysis

(Market Overview)

The global shampoo market is expected to reach an estimated value of $25.73

billion by 2019. In 2013 hair care grew by 2% in the United States making $11.4 billion.

Hair care in the US is predicted to rise by 12% to reach retail sales of $12.8 billion in

2018. Consumers are now more likely to buy higher quality hair care products due to

increasing levels of disposable income.

The drives of the shampoo/conditioner market are innovation, increasing

consumer concern of appearance of hair, growth of male hair care products, and

increasing demand for natural and organic hair shampoos. Innovation is very important in

this market because consumers have many changing hair concerns. This market is always

evolving because manufactures are always producing products to keep up with

consumers needs. The always changing needs of consumers allow this market to be more

open to new products. Consumers are more willing to try new brands to fulfill their hair

care needs.

There are about 50 shampoo/conditioner brands that are sold in America. The

most popular brands are the ones that provide salon like quality with a cheaper price tag.

These brands can be found in places like pharmacies, food stores, and superstores.

Secondary Research

(Market Overview)

Pantene Pro V Color ReservePrivate Label

Garnier Fructis Sleek and ShinePantene Pro V Classic

Pantene Pro V FinePantene Pro V Normal Thick

Clairol Herbal Essences Hello HydrationSuave Naturals

OrganixSuave Professionals

0 10 20 30 40 50 60 70 80 90

3333.934.134.3

41.442.1

45.758.7

61.483.1

Best Selling Shampoo in 2013

US Dollars (in millions)

Bra

nd

*Data from Statista.com


These two graphs show the leading brand of shampoo and conditioner in 2013. It

is interesting to note that the same brands appear multiple times on both graphs. This

shows that manufacturing different types of shampoo/conditioner will be beneficial for a

company because they are able to have multiple top selling products. Pantene having

multiple best selling products for different types of hair demonstrates how consumers buy

products based on their specific needs. Notice how the top selling brand of shampoo is

not also the top selling brand of conditioner. This also shows consumers buying based on

needs instead of simply buying the same brand of shampoo and conditioner.

Private LabelTresemme Moisture Rich

Loreal Advanced Haircare Total Repair 5Pantene Pro V Medium Thick

Nexxus HumectressClairol Herbal Essences Hello Hydration

Suave NaturalsSuave Professionals

Garnier Frutis Sleek and ShineOrganix

0 10 20 30 40 50 60 70 80

24.124.624.9

31.132.5

35.238.3

50.352

74.9

Best Selling Conditioner in 2013

US Dollars (in millions)

Bra

nd

Total shampoo sales in America were 1.4 billion U.S. dollars in 2011/2012. This

graph shows which types of outlets sold the most shampoo. You can see that the most

money spent was at food stores. This shows that food stores are the most popular place

among consumers to buy shampoo and conditioner.

Food Store

s

Pharm

acies

Other

Outle

ts (E

xcludin

g Walm

art)

0200400600

610455.9

330.4

Shampoo/Conditioner Sales in Different Outlets in 2011/2012

Outlets

US

Dol

lars

(in

mil

lion

s)


This graph shows the statistics found from a survey conducted through January

2013 to March 2014 among approximately 24,000 American adults about the use of

shampoo in their household. A large 92% of American adults use shampoo. The shampoo

market always has the ability to grow because shampoo is a basic need of consumers.

92% of 24,000 Americans will always be purchasing shampoo in their lives.

92.40%

6.60% 1.10%

US Household Use of Shampoo

Yes

No

Don't Know


Consumer Primary

Research

Questionnaire Analysis

Market Observations

80% of consumers use both shampoo and conditioner

o Majority of consumers spend money on hair care products

o Shampoo/Conditioner is a basic necessity thus there is always a need for it

o 5 out of 10 consumers use shampoo/conditioner every day

60% of consumers buy shampoo/conditioner every 2 months and 80% consumers

buy a 16-20 fl oz bottle

o An ideal shampoo/conditioner for consumers would be 16-20 fl oz so that

it will last them 2 months

Only 1 out of 10 consumers buy their shampoo/conditioner at a beauty supply

store

o Beauty supply stores are not as popular among consumers to buy their

shampoo/conditioner

o Food stores, pharmacies, and superstores each have 30% of consumers

business when buying shampoo/conditioner

Out of the 3 vitamins in this shampoo/conditioner 5 out of 10 of consumers knew

what Biotin was

o It is interesting to note that 0 consumers knew what Panthenol was

60% of consumers care more about quality than price

o Consumers are more attracted to the usefulness of the

shampoo/conditioner than how much it costs

Tropical scent was the most popular, having 6 out of 10 prefer it to citrus,

vanilla, and floral

o Floral was the least liked scent with 0% of consumers wanting their

shampoo/conditioner to have this scent.

40% of consumers ranked having healthy hair and a healthy scalp as the most

important need (5 on a scale of 1-5, five being the highest)

o 4 out of 10 consumers ranked this as 4 out of 5

o It is important to note that this was the highest ranked

5 out of 10 consumers ranked having hair that has body and volume as 4 out of

5

o Notice that 0 consumers ranked this need as 5 out of 5

o It is important to note that this was the least important need for

consumers

o 20% of consumers ranked this need 1 out of 5

2 out of 10 consumers ranked having split ends repaired as 5 out of 5

o This was the second highest ranked need

Consumers appear to be more concerned with the health of their hair rather than

the appearance of it

Questionnaire Analysis

Product Observations

Keeping hair and scalp healthy was the most appealing feature of this

shampoo/conditioner

o This was the highest ranked

o It is important to note that no consumers thought that repairing split

ends or helping hair grow was the best feature

o 20% of consumers said having hair with volume and body was the

best feature

60% of consumers would be willing to switch brands in order to use this

shampoo and conditioner

8 out of 10 consumers thought that this shampoo and conditioner would be

useful to them

o 2 out of 10 consumers thought this product would be moderately

useful

o100% of consumers believed that this product would be useful to

them

50% of consumers were satisfied with the bottle being 12 fl oz and the other 50%

wanted the bottle to be larger.

9 out of 10 consumers would buy this product

Five out of 10 consumers would be willing to pay between $7.00 - $7.99

o The highest price that 1 consumer would be willing to pay was

between $8.00 – $8.99

o The cheapest price that 1 consumer would be willing to pay was

between $5.00 - $5.99

o 3 out of 10 consumers would be willing to pay $6.00 - $6.99

o Half of the 10 consumers viewed this product of having a value

between $7.00 and $7.99

30% of consumers would purchase this product at a food store. Another 30% of

consumers would buy this product from a superstore

o A beauty supply store and pharmacy both had 20% of consumers

saying they would buy this product in either location

6 out of 10 consumers would not purchase multiple shampoo/conditioner

products to put in more than one bathroom

Questionnaire

Shampoo and Conditioner with Vitamins Questionnaire

PART I

1. Do you use both Shampoo and Conditioner?

a. Yes (8/10) 80% b. No, only shampoo (2/10) 20%

c. No, only conditioner (0/10) 0%

2. How often do you use Shampoo and Conditioner?

a. 1-3 times a week (2/10) 20% b. 4-6 times a week (3/10) 30% c. Everyday

(5/10) 50%

3. How often do you buy Shampoo and Conditioner?

a. Once every two weeks (2/10) 20% b. Once a month (2/10) 20%

c. Once every two months (6/10) 60%

4. Where do you buy Shampoo and Conditioner?

a. Food Store (3/10) 30% b. Beauty Supply Store (1/10) 10% c. Superstore (i.e.

Walmart, Target) (3/10) 30% d. Pharmacy (3/10) 30%

5. Do you usually buy the same brand of Shampoo and Conditioner?

a. Yes (6/10) 60% b. No (4/10) 40%

6. Which size bottle of Shampoo and Conditioner do you usually buy?

a. 10-15 fl oz (2/10) 20% b. 16 to 20 fl oz (8/10) 80%

c. Larger than 20 oz (0/10) 0%

7. Have you heard of any of these vitamins? (circle all that apply)

a. Biotin (3/10) 30% b. Panthenol (0/10) 0% c. Jojoba oil (1/10) 10% d. I have

not heard of any of these. (4/10) 40% A+B (1/10) 10% A+B+C (1/10) 10%

8. What is more important to you?

a. Quality of shampoo and conditioner (6/10) 60% b. Price of shampoo and

conditioner (4/10) 40%

9. Which scent would you prefer to have your Shampoo and Conditioner be?

a. Tropical (6/10) 60% b. Citrus (1/10) 10% c. Vanilla (3/10) 30%

d. Floral (0/10) 0%

10. On a scale of 1 to 5 (1 being the lowest 5 being the highest) how important is having

healthy hair and scalp?

1 (0/10) 0% 2 (0/10) 0% 3 (2/10) 20% 4 (4/10) 40% 5 (4/10) 40%


hair that has body and volume?

1 (2/10) 20% 2 (1/10) 10% 3 (2/10) 20% 4 (5/10) 50% 5 (0/10) 0%


split ends repaired?

1 (2/10) 20% 2 (1/10) 10% 3 (2/10) 20% 4 (3/10) 30% 5 (2/10) 20%

PART II

Shampoo and Conditioner with Vitamins

Contains:

o Biotin (coenzyme and a B vitamin)

Keeps hair and scalp healthy

o Panthenol (B vitamin)

Adds body and volume to hair

o Jojoba (oil that is extracted from the Jojoba plant’s seeds)

Helps hair grow and repair split ends

Shampoo and conditioner will come in 12 fl oz plastic bottles.

Sold in beauty supply stores, superstores, food stores, and pharmacies

Compatible with all types of hair

PART III

1. Which feature of this product is the most appealing to you?

a. Keeps hair and scalp healthy (8/10) 80%

b. Gives hair volume and body (2/10) 20% c. Repairs split ends (0/10) 0% d.

Helps hair grow longer (0/10) 0%

2. If you are loyal to only one brand of shampoo and conditioner would you be willing to

switch to this brand?

a. Yes (6/10) 60% b. No (2/10) 20% c. I am not loyal to one brand (0/10) 0%

3. How useful would this shampoo and conditioner be to you?

a. Very useful (8/10) 80% b. Moderately useful (2/10) 20% c. Not useful at all

(0/10) 0%

4. Are you satisfied with the 12 fl oz size bottles of this shampoo and conditioner?

a. Yes (5/10) 50% b. No, I would want a smaller bottle (0/10) 0% c. No, I would

want a larger bottle (5/10) 50%

5. Would you purchase this shampoo and conditioner?

a. Yes (9/10) 90% b. No (1/10) 10%

6. What price would you be willing to pay for this shampoo and conditioner?

a. $5-$5.99 (1/10) 10% b. $6-$6.99 (3/10) 30% c. $7-$7.99 (5/10) 50% d. $8-

$8.99 (1/10) 10% e. $9-$9.99 (0/10) 0%

7. Where would you go to purchase this shampoo and conditioner?

a. Food Store (3/10) 30% b. Beauty Supply Store (2/10) 20% c. Superstore (i.e.

Walmart, Target) (3/10) 30% d. Pharmacy (2/10) 20%

8. Would you buy more than one bottle of this product to put in multiple bathrooms?

a. Yes (4/10) 40% b. No (6/10) 60%

Focus Group Analysis

Market Observations

Everyone in the focus group uses both shampoo and conditioner

It is interesting to note that they all preferred to use a hair care product that

combined shampoo and conditioner in one bottle

o Convenience is a large factor in the focus group members lives

They buy their shampoo and conditioner based on whatever store

is the closest to them

The focus group members pay attention to brand name products.

o If they like one type of product one brand offers they are likely to try other

products from the same brand

If the members liked a certain type of shampoo and conditioner the size of the

bottle did not matter

When buying shampoo and conditioner they take the quality and the price into

consideration when choosing what brand to purchase.

o One member always looks at the price first

The members of the focus group often picked their shampoo and conditioner

based on what type of hair the product was made for (straight, curly, etc…)

They all thought tropical was the best scent for a shampoo and conditioner to

have

All four members of the focus group ranked having healthy hair and scalp as

their biggest concern when buying shampoo and conditioner

Having hair that has body and volume was ranked as the 2nd biggest concern

o Females cared more about this than males

Repairing split ends was the 3rd biggest concern

There was also concern over damaged hair, dandruff, hair loss, gray hair, color

protectant, and heat protectant

They believed their hair grows at a normal pace and did not care about a

shampoo and conditioner that increased hair growth speed

Focus Group Analysis

Product Observations

The focus group members were intrigued by the vitamins in the shampoo and

conditioner

o Biotin was the most appealing because they cared the most about keeping

their hair and scalp healthy

All focus group members said they would be willing to purchase the product

o They did not have much brand loyalty

o They all thought it would be useful for them

o They would like to see a travel size or a free sample so that they can see if

they would like this shampoo and conditioner

The members agreed that the 12 fl oz bottle is too small and they would want a

bigger size

They would spend $5 - $6 on a 12 fl oz bottle

o On a 16 fl oz bottle they would spend $9 - $10

o On a 20 fl oz bottle they would spend $12 - $15

No one would travel to a beauty supply store to buy this product

o They would buy it in whatever outlet is the closest to them

They would be interested in different types of products that also included the

vitamins that are in the shampoo and conditioner

o Heat protectant spray

o Deep conditioner

o Pomade

It is interesting to note that this product had little to no male appeal

Conclusions

Everyone takes care of their hair

Shampoo and conditioner are a basic need

o People are always going to be buying shampoo and conditioner

The hair care market is always evolving and increasing

o Consumers needs and wants regarding hair care is always changing

o The market is open to new products to fit the changing needs of

consumers

Not many consumers buy their shampoo and conditioners in beauty supply stores

Most people said having healthy hair and a healthy scalp is the biggest concern

when buying shampoo and conditioner

Consumers are not that concerned with hair growth

Quality of shampoo and conditioner is more important than price to most

consumers

Almost every person said they would be willing to buy this shampoo and

conditioner

Consumers thought that the most appealing feature of this shampoo and

conditioner is that it keeps hair and scalp healthy

Consumers would be willing to pay $5 to $6 for a 12 fl oz size bottle

Most consumers wanted a bigger bottle

Tropical scent was most popular among consumers

This product was not very appealing to males

This product is highly likely to succeed in the market

o This product can be very successful among women specifically

o The added vitamins to the product were very appealing to consumers

o The open market allows a new shampoo and conditioner like this to

easily enter the market and be successful

o This product can succeed in all areas in the United States

Recommendations

This shampoo and conditioner should be launched into the hair care market

The most important feature of this product is that it helps keep hair and scalp

healthy

This product should have a tropical scent

The product should cost $7.99

The shampoo and conditioner should be sold primarily in food stores and then

also sold in super stores and pharmacies

Do not sell this product in beauty supply stores because very few consumers go

there to buy shampoo and conditioner

Offer travel sizes or free trial samples so that consumers can try out the shampoo

and conditioner

Focus on appealing to women when advertising

Change the bottle size from 12 fl oz to 16 fl oz

Make alternate products made for specific types of hair

Manufacture different types of shampoo and conditioner that helps with different

consumer concerns such as: dandruff, hair loss, gray hair, color protectant, heat

protectant

A 2 in 1 shampoo/conditioner in one bottle can also be successful among

consumers

Recommended Launch Campaign

Since the best feature of this product is that it keeps hair and scalp healthy, it

should be the focus point of the ad

Most consumers cared the most about having their hair healthy so that is the focus

of this ad

This is a new product so the ad must state that it contains vitamins and what the

vitamins do

Works Cited

Brandes, W. (n.d.). The Best Shampoo Brands. Retrieved December 13, 2014, from

http://www.ranker.com/list/the-best-shampoo-brands/werner-brandes?

format=GRID&action=tab&type=demographics

Hair Care in the US. (2011, November). Retrieved December 11, 2014, from

http://www.euromonitor.com/hair-care-in-the-us/report

Sales Share of the Leading Shampoo Brands in the U.S. 2013 (2014, April).

Retrieved December 13, 2014, from

http://www.statista.com/statistics/195585/share-of-sales-of-us-regular-

shampoo-brands-in-2007-and-2008/

U.S. Shampoo Sales via Different Sales Channels 2011/2012 (2011). Retrieved

December 13, 2014, from http://www.statista.com/statistics/193102/us-

shampoo-sales-via-different-sales-channels-in-2010-and-2011/

U.S.: Usage of Shampoo 2014. (2014, July). Retrieved December 13, 2014, from

http://www.statista.com/statistics/276924/us-households-usage-of-shampoo/

consumerbehaviorpaper

Documents