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DIGITAL IQ INDEX ® PERSONAL CARE: U.S. SEPTEMBER 29, 2015 EXCERPT FROM THE DIGITAL IQ INDEX ® : PERSONAL CARE: U.S. TO ACCESS THE FULL REPORT, CONTACT [email protected]

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Page 1: Personal Care Brands - Digital IQ Ranking Index

v

DIGITAL IQ INDEX®

PERSONAL CARE: U.S. SEPTEMBER 29, 2015

EXCERPT FROM THE DIGITAL IQ INDEX®: PERSONAL CARE: U.S. TO ACCESS THE FULL REPORT, CONTACT [email protected]

Page 2: Personal Care Brands - Digital IQ Ranking Index

2September 29, 2015

© L2 Inc., 2015 Circulation of the report violates copyright, trademark and intellectual property laws.

DIGITAL IQ INDEX® PERSONAL CARE: U.S.

EXCERPT FROM THE DIGITAL IQ INDEX®: PERSONAL CARE: U.S. TO ACCESS THE FULL REPORT, CONTACT [email protected] FROM THE DIGITAL IQ INDEX®: PERSONAL CARE: U.S. TO ACCESS THE FULL REPORT, CONTACT [email protected]

OFFLINEPersonal Care products do not command the same share of wallet online as in the physical retail environment. During the first half of 2015, Health & Personal Care retailers generated $150 billion in U.S. sales (nearly 10 percent of retail dollars, excluding motor vehicles and parts).1 In contrast, the category accounts for 5.7 percent of e-commerce dollars (flat year over year).2 Second only to Food & Beverage and OTC Health consumers, Personal Care shoppers have been slow to change how and where they shop.3

UrgencyWhile most Personal Care brands continue to cultivate deeper partnerships with e-tailers, select brands are proactively addressing potential threats. For example, several disruptors have capitalized on the replenishment opportunity in an industry tethered to traditional retail formats. Founded just three years ago, Dollar Shave Club now boasts two million active members and a $615 million valuation.4 More recently, the brand claims to have surpassed Schick in razor cartridge volume sales.5 This July, competitor Harry’s latest venture round gave the firm a valuation of $750 million.6 Both upstarts are attempting to disintermediate high-margin, low-competition businesses (e.g., Gillette, Schick). Despite operating on a different order of magnitude ($7.9 billion in sales), Gillette has responded. It recently launched “Gillette Shave Club,” a new avenue of investment with uncertain return.7 The lucrative diapers business, where Huggies enjoys nearly 40 percent market share, is facing a similar threat from The Honest Co., recently valued at $1.7 billion.8 According to reports, as much as 80 percent of The Honest Co.’s revenue comes from its diaper subscription service.9,10 It recently expanded distribution to more retail partners, including Target.

Watch the Video

Source: BI Intelligence, May 2015.

Source: Euromonitor International, May 2015.

Personal Care: Online vs. Offline Retail SalesU.S., 2001–2020E

Personal Care: Percentage of Sales Attributed to Internet Retailing, by CategoryU.S., 2014

1. “Monthly Retail Trade Report: Retail & Food Services Sales (June),” U.S. Census Bureau, August 2015.2. “Beauty Beats Drugstores for Ecommerce Sales,” eMarketer, July 7, 2015.3. “Though Majority of Americans Have Made a Virtual Purchase, They Still See Virtue in the In-Person Shopping Experience,”

Harris Interactive, July 15, 2014.4. “Dollar Shave Club Is Valued at $615 Million,” Rolfe Winkler, The Wall Street Journal, June 21, 2015.5. “Dollar Shave Club Claims to Top Schick as No. 2 Razor Cartridge,” Jack Neff, AdAge, September 8, 2015.6. “Harry’s Picks Up $75.6M at $750M Post-Money Valuation,” Lora Kolodny, The Wall Street Journal, July 7, 2015.7. “Gillette wants a slice of the online razor club business,” Tracy Maple, Internet Retailer, July 16, 2015.8. “Telling the truth pays: Jessica Alba’s Honest Company is worth $1.7 billion,” Valentina Zarya, Fortune, August 14, 2015.9. “Jessica Alba’s The Honest Co. Raises $70M, Preps for IPO,” Lizette Chapman, Wall Street Journal, August 26, 2014.10. “How Jessica Alba Built A $1 Billion Company, And $200 Million Fortune, Selling Parents Peace of Mind,” Clare O’Connor,

Forbes, May 27, 2015.

$400

$300

$200

$100

$02001 2003 2005 2007 2009 2011 2013 2015E 2017E 2020E

BILL

ION

S

OFFLINE SALES

ONLINE SALES

14.5%

SKIN CARE BATH ANDSHOWER

SHAVING BABY ANDCHILD-SPECIFIC

SUNCARE

MEN’SGROOMING

ORALCARE

DEODORANTS

1.9%0.8%

4.7%3.9% 3.8% 3.0%

6.5%

Page 3: Personal Care Brands - Digital IQ Ranking Index

3September 29, 2015

© L2 Inc., 2015 Circulation of the report violates copyright, trademark and intellectual property laws.

DIGITAL IQ INDEX® PERSONAL CARE: U.S.

EXCERPT FROM THE DIGITAL IQ INDEX®: PERSONAL CARE: U.S. TO ACCESS THE FULL REPORT, CONTACT [email protected]

E-Tailer DependencyTo date, Personal Care brands rely on third-party dot-coms for distribution. Among industry brands tracked longitudinally, less than 10 percent offer direct-to-consumer (DTC) e-commerce, and only five (Burt’s Bees, Gillette, Philips Norelco, Philips Sonicare, and TENA) support auto-replenish services. Meanwhile, more than 80 percent of brands provide an online path to purchase from product pages—commonly pushing visitors to Amazon, Drugstore.com, Walmart, etc. Unlike individual brands, major retail players have cultivated two assets required to challenge how consumers approach Personal Care purchases. First, several omnichannel players have well-established loyalty programs (e.g., Walgreens’s “Balance Rewards”) that are leveraged to personalize and target offers. Second, several e-tailers are cultivating the necessary infrastructure to subsidize shipping costs. In a competitive response to Amazon Prime, Walmart has confirmed plans to offer its own subscription service codenamed “Tahoe.”11 Despite a well-founded aversion to direct sales, manufacturers can develop a winning e-commerce strategy working closely with retail partners and leveraging their scale and customer data—advantages no individual brand can match.

Digital IQ = Shareholder Value This study attempts to quantify the digital competence of 72 U.S. Personal Care brands across 10 categories, with a special supplement on subscription services. Our aim is to provide a robust tool to diagnose digital strengths and weaknesses, helping managers achieve greater return on incremental investments. Like the medium we are assessing, our approach is dynamic. Please reach out with comments that improve our methodology and key findings.

Regards, L2 11. “Wal-Mart Preps Rival to Amazon Prime,” Amir Efrati, The Information, May 13, 2015.

0

200

400

600

800

AUG 2013 NOV 2013 FEB 2014 MAY 2014 AUG 2014 NOV 2014 FEB 2015 MAY 2015 AUG 2015

MON

THLY

SEA

RCH

VOLU

ME

IN T

HOUS

ANDS OCT 2013:

$12MSERIES B

SEPT 2014:$50MSERIES C

JUL 2015$75M SERIES D;$615M Valuation

NOV 2013:$25MSERIES A

JAN 2014:$123MVENTURE

MAY 2014:$10MVENTURE

NOV 2014:$75MVENTURE

JUL 2015:$76M SERIES C;$750M VALUATION

AUG 2013:$70MSERIES C

AUG 2015:$100M SERIES D;$1.7B VALUATION

Source: Google AdWords Keyword Tool, August 2015.

*Includes additional product sites for Colgate and Bic. Sites may link to more than one e-tailer.Source: L2 Inc., 2015.

WALMART DRUGSTORE.COM

AMAZON CVS WALGREENS TARGET SOAP.COM ANY ENTERPRISE

STORE

NO PATH TOPURCHASE

68% 64% 61% 58% 58% 51% 39%15%

4%

Personal Care: Online Search Equity of Emerging Subscription Services August 2013–2015 ■ “dollar shave club” ■ “gillette” ■ “honest company” ■ “harry’s”

Personal Care: Share of Brand Sites with Any Link to Given E-Tailer August 2015 n=74 Brand Sites*

Page 4: Personal Care Brands - Digital IQ Ranking Index

September 29, 2015

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DIGITAL IQ INDEX® PERSONAL CARE: U.S.

EXCERPT FROM THE DIGITAL IQ INDEX®: PERSONAL CARE: U.S. TO ACCESS THE FULL REPORT, CONTACT [email protected]

4

GENIUS 140+

Digital competence is a point of competitive differentiation for these brands. Creatively engineered messaging reaches consumers on a variety of devices and in many online environments.

GIFTED 110–139

Brands are experimenting and innovating across site, mobile, and social platforms. Digital presence is consistent with brand image and larger marketing efforts.

AVERAGE 90–109

Digital presence is functional yet predictable. Efforts are often siloed across platforms.

CHALLENGED 70–89

Limited or inconsistent adoption of mobile and social media platforms. Sites lack inspiration and utility.

FEEBLE <70

Investment does not match opportunity.

Classification

35% SITE & E-COMMERCE

BRAND.COMTechnology, Search & Navigation: Load Time, Analytics, Video Technology, Guided Selling, Keyword Search, Clicks to Product Page, Sorting & Filtering Criteria

Product Page: Videos, Content Integration, Usage & Ingredients Information, User Reviews, Integration of “Buy Now” Call-to-Action

Customer Service & Account: Contact Us, “Where to Buy” Store Locator, User Account Registration & Functionality

E-Commerce / E-Tailer Support: Ease of Direct Checkout (if applicable), Sophistication of Handoff to Featured E-tailer(s)

RETAILER.COMAmazon: Content Investments, Search Visibility, Average Review Count

Walmart: Content Investments, Search Visibility, Average Review Count

Target: Search Visibility, Average Review Count

Drugstore.com: Search Visibility, Average Review Count

30% DIGITAL MARKETING

Brand Search: Traffic, Web Authority, SEO/SEM

Category Search: Organic Visibility Across Category-specific Keywords

Web Advertising: Impressions and Creative Count for Desktop Display Ads & Video Pre-Roll (Pathmatics)

Earned Media: Brand Mentions on Coupon Portals (including Hip2Save, Krazycouponlady, etc.)

Email: Frequency, User Profile Capture, Mobile Optimization, Personalization

Methodology

MOBILE

20% Mobile Site: Load Time, Compatibility, UI/UX Optimization, Geolocation

Mobile Search: “Mobile-Friendly” Designation in Search, “Pre-Scroll” Real Estate, Paid Search Extensions

Mobile Innovation: Mobile & Tablet Display Ads (Pathmatics), Mobile Apps, Tablet Site Optimization, Other Mobile Initiatives

SOCIAL MEDIA

15% Facebook: Post Engagement, Community Size & Growth, Post Frequency, Timeline Content, Support for Native Video

YouTube: Search Visibility, Channel Experience, Video Views, Virality of Most-Viewed Content

Twitter: Post Engagement, Community Size & Growth, Post Frequency, Employ of User Mentions & Hashtags

Emerging Social Media: Instagram, Pinterest (if applicable)

Page 5: Personal Care Brands - Digital IQ Ranking Index

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DIGITAL IQ INDEX® PERSONAL CARE: U.S.

EXCERPT FROM THE DIGITAL IQ INDEX®: PERSONAL CARE: U.S. TO ACCESS THE FULL REPORT, CONTACT [email protected]

RANK BRAND DIGITAL IQ

1 149

2 144

RANK BRAND DIGITAL IQ

3 135

3 135

5 127

6 125

7 123

8 122

8 122

RANK BRAND DIGITAL IQ

10 121

10 121

12 120

12 120

14 118

14 118

16 115

Philips

Unilever Group

Procter & Gamble Co.

Procter & Gamble Co.

Procter & Gamble Co.

Procter & Gamble Co.

Procter & Gamble

Kimberly-Clark

Procter & Gamble Co.

Johnson & Johnson

Clorox Co.

Seventh Generation

Procter & Gamble Co.

Unilever Group

Procter & Gamble Co.

Procter & Gamble Co.

GENIUSPampers

GilletteGIFTED

DoveOlay

CrestSecretOral-B

Gillette VenusHuggiesAlways

Seventh GenerationNeutrogena

Philips SonicareBurt’s Bees

Old SpiceDove Men+Care

PoiseTampax

U by KotexColgateSimple

LuvsPhilips Norelco

AVERAGEAveenoDepend

Johnson’s BabyAxe

DegreeSchick

ListerineNivea

Pull-UpsSuaveBraun

PanasonicSally Hansen

Arm & HammerVaseline

CHALLENGEDTena

Banana BoatCetaphilJergens

Q-tipsTom’s of MaineAlways Discreet

PlaytexVeet

Summer’s EvePurell

Speed StickEdge

CaressNivea for Men

EucerinIrish Spring

Pond’sSkintimate

CarefreeNair

SensodyneStayfree

DialHawaiian Tropic

FEEBLECoppertone

BicLubriderm

Right GuardAquafresh

SoftsoapScope

ACTMitchum

IN THE COMPANY OF GENIUS GIFTED

5

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DIGITAL IQ INDEX® PERSONAL CARE: U.S.

EXCERPT FROM THE DIGITAL IQ INDEX®: PERSONAL CARE: U.S. TO ACCESS THE FULL REPORT, CONTACT [email protected]

RANK BRAND DIGITAL IQ

24 108

25 107

26 103

27 102

27 102

27 102

30 101

RANK BRAND DIGITAL IQ

16 115

16 115

19 114

20 112

21 111

22 110

22 110

RANK BRAND DIGITAL IQ

30 101

32 100

33 99

34 98

34 98

36 96

37 95

Church & Dwight Co.

Johnson & JohnsonKimberly-Clark

Johnson & JohnsonKimberly-Clark

Unilever GroupUnilever Group

Kimberly-ClarkProcter & Gamble Co.

Unilever GroupColgate-Palmolive Co

Edgewell Personal CareProcter & Gamble Co.

Johnson & JohnsonPhilips

Beiersdorf

Unilever Group

Panasonic Corp.

Kimberly-Clark

Procter & Gamble Co.

Coty

GIFTED AVERAGE

GENIUSPampers

GilletteGIFTED

DoveOlay

CrestSecretOral-B

Gillette VenusHuggiesAlways

Seventh GenerationNeutrogena

Philips SonicareBurt’s Bees

Old SpiceDove Men+Care

PoiseTampax

U by KotexColgateSimple

LuvsPhilips Norelco

AVERAGEAveenoDepend

Johnson’s BabyAxe

DegreeSchick

ListerineNivea

Pull-UpsSuaveBraun

PanasonicSally Hansen

Arm & HammerVaseline

CHALLENGEDTena

Banana BoatCetaphilJergens

Q-tipsTom’s of MaineAlways Discreet

PlaytexVeet

Summer’s EvePurell

Speed StickEdge

CaressNivea for Men

EucerinIrish Spring

Pond’sSkintimate

CarefreeNair

SensodyneStayfree

DialHawaiian Tropic

FEEBLECoppertone

BicLubriderm

Right GuardAquafresh

SoftsoapScope

ACTMitchum

6

Page 7: Personal Care Brands - Digital IQ Ranking Index

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DIGITAL IQ INDEX® PERSONAL CARE: U.S.

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RANK BRAND DIGITAL IQ

45 84

45 84

47 82

48 81

49 80

49 80

51 79

RANK BRAND DIGITAL IQ

38 94

39 88

40 87

40 87

40 87

40 87

44 86

RANK BRAND DIGITAL IQ

52 78

52 78

54 77

54 77

54 77

54 77

58 76

Edgewell Personal Care

Procter & Gamble Co.Unilever Group

Reckitt BenckiserEdgewell Personal Care

GOJO IndustriesKao Corp

Edgewell Personal CareSCA Americas, Inc.

C.B. Fleet Co.Galderma

Colgate-Palmolive Co.Unilever Group

Edgewell Personal CareColgate-Palmolive Co.

Unilever Group

Beiersdorf

Unilever Group

Beiersdorf

Colgate-Palmolive Co.

Edgewell Personal Care

CHALLENGEDAVERAGE

GENIUSPampers

GilletteGIFTED

DoveOlay

CrestSecretOral-B

Gillette VenusHuggiesAlways

Seventh GenerationNeutrogena

Philips SonicareBurt’s Bees

Old SpiceDove Men+Care

PoiseTampax

U by KotexColgateSimple

LuvsPhilips Norelco

AVERAGEAveenoDepend

Johnson’s BabyAxe

DegreeSchick

ListerineNivea

Pull-UpsSuaveBraun

PanasonicSally Hansen

Arm & HammerVaseline

CHALLENGEDTena

Banana BoatCetaphilJergens

Q-tipsTom’s of MaineAlways Discreet

PlaytexVeet

Summer’s EvePurell

Speed StickEdge

CaressNivea for Men

EucerinIrish Spring

Pond’sSkintimate

CarefreeNair

SensodyneStayfree

DialHawaiian Tropic

FEEBLECoppertone

BicLubriderm

Right GuardAquafresh

SoftsoapScope

ACTMitchum

7

Page 8: Personal Care Brands - Digital IQ Ranking Index

September 29, 2015

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RANK BRAND DIGITAL IQ

64 69

65 64

65 64

65 64

68 61

RANK BRAND DIGITAL IQ

58 76

58 76

61 74

62 72

63 71

RANK BRAND DIGITAL IQ

68 61

70 52

71 51

72 45

Bayer AGChurch & Dwight Co.

Johnson & JohnsonEdgewell Personal Care

GlaxoSmithKlineEdgewell Personal Care

Société BicGlaxoSmithKline

Henkel AG & Co.Henkel AG & Co.

Colgate-Palmolive Co.

Chattem

Procter & Gamble Co.

Revlon

CHALLENGED FEEBLE

GENIUSPampers

GilletteGIFTED

DoveOlay

CrestSecretOral-B

Gillette VenusHuggiesAlways

Seventh GenerationNeutrogena

Philips SonicareBurt’s Bees

Old SpiceDove Men+Care

PoiseTampax

U by KotexColgateSimple

LuvsPhilips Norelco

AVERAGEAveenoDepend

Johnson’s BabyAxe

DegreeSchick

ListerineNivea

Pull-UpsSuaveBraun

PanasonicSally Hansen

Arm & HammerVaseline

CHALLENGEDTena

Banana BoatCetaphilJergens

Q-tipsTom’s of MaineAlways Discreet

PlaytexVeet

Summer’s EvePurell

Speed StickEdge

CaressNivea for Men

EucerinIrish Spring

Pond’sSkintimate

CarefreeNair

SensodyneStayfree

DialHawaiian Tropic

FEEBLECoppertone

BicLubriderm

Right GuardAquafresh

SoftsoapScope

ACTMitchum

8

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DIGITAL IQ INDEX® PERSONAL CARE: U.S.

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Brand SiteDespite attracting low site traffic (averaging 114 thousand unique visitors per month), Personal Care brands have been actively investing in consumer-facing sites over the past year. More than a third of Index brands have either relaunched or made significant UI/UX changes since they were profiled in the October 2014 Index. Behind much of the momentum is the Procter & Gamble portfolio, with half the affiliated brands (including Always, Gillette Venus, Secret, and Tampax) having now migrated to a common enterprise template. Another notable relaunch is Unilever’s AXE brand (www.axe.us), which finally let go of its legacy Adobe Flash-based site. Year-over-year analysis of site features reveals an overall trend toward increasing sophistication, with 85 percent of the 53 brand sites tracked longitudinally now offering keyword search and 30 percent supporting user-specific account registration. Again, these changes to the Index at large are attributable primarily to the site changeover registered within P&G. In contrast, adoption of store locators is down to 42 percent (verses 60 percent in 2013) as brands reevaluate the utility of an often clunky tool used to highlight widespread availability of mass products. The dramatic 30 percentage point increase in responsive design speaks to the importance of optimizing across devices as brands opt for a one-size-fits-all approach—driven by a wide cross section of brands, regardless of enterprise affiliation. Support of live chat though limited (13 percent) is commonly found in two subsets of brands: (1) incontinence (Poise, Depend, TENA); and (2) electronics (Philips, Panasonic). The product education opportunities in incontinence and the availability of DTC e-commerce among electronics justify these targeted investments in advanced customer service options.

Personal Care: Brand Site Investments Over Time2013–2015, n=53 Brand Sites Present in All Studies

■ 2013 ■ 2014 ■ 2015

Source: L2, Inc.

AXE relaunched its brand site to accompany the launch of “White Label” products in December 2014.

USERREVIEWS

51%

62%72%

KEYWORDSEARCH

63%

65%85%

STORE LOCATOR

60%

57%42%

12%

25%55%

RESPONSIVE DESIGN

23%

CONSUMER ACCOUNT

23%30%

KEY FINDINGS SITE & E-COMMERCE

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Category Search (Organic)Non-branded, category-specific keyword terms (e.g., “diapers”) produce organic search listings that are even more favorable to retailers—again, disproportionately skewed by results from Amazon. Depending on a brand’s current distribution status on Amazon, the decisive advantage held by the “world’s largest store” across all facets of search can easily circumvent a brand’s identified set of preferred and/or authorized retail partners. Across the 10 product categories examined, Amazon appeared on average 1.8 times more frequently among the top 30 organic search results than the most visible brand site. Furthermore, Amazon’s average listing holds the eighth position among competing search results, compared with the brand site, which hovers at the 15th position. This means Amazon is more likely to occupy a prominent position on the first page of organic results versus the official brand site (as Google displays up to 10 results per page). Overall, brand sites are poorly optimized for more generic category keywords and are failing to gain the prominent visibility they consistently achieve on branded search queries. Relative to brand sites, retailers achieved the lowest visibility across incontinence terms (appearing 0.7 times as frequently as the most visible brand site), oral care terms (0.7 times), and sanitary protection terms (0.3 times). Brand sites in these categories benefit from a less competitive set of motivating keywords (i.e., medical jargon) plus enhanced SEO “crawl-ability” thanks to extensive on-site FAQs that address common questions about tooth decay, bladder leakage, etc. Consequently, a brand such as Colgate appears 173 times across oral care keywords, compared with Amazon’s 127 appearances.

Personal Care: Average Search Rank vs. Frequency of Appearance Across Category-Specific Keywords on GoogleTop 30 Organic Search Results for Non-Branded Terms Across 10 Product Categories*August 2015 ■ Amazon.com Result ■ Brand.com Result ■ Target.com Result ■ Walmart.com Result

21

26

11

16

1

6

0

AVER

AGE

SEAR

CH R

ANK

20 40 60 80 100 120 140 160

NUMBER OF APPEARANCES ACROSS CATEGORY TERMS

HIGH RELEVANCE, HIGH FREQUENCY

LOW RELEVANCE, LOW FREQUENCY

COLGATE.COMCREST.COM

Source: L2, Inc. *Note: Keywords determined using Google Adwords Keyword Tool. Bath & shower: n=60 terms; deodorant: n=105 terms; diapers: n=37 terms; electronics: n=28 terms; shaving & hair removal: n=38 terms; incontinence: n=42 terms; oral care: n=165 terms; sanitary protection: n=75 terms; skincare: n=130 terms; sun care: n=38 terms. Chart separately displays each product category.

KEY FINDINGS DIGITAL MARKETING

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Personal Care: Brand Adoption of Social Media Platforms Over Time2013–2015, n=53 Brands Present Across All Studies ■ 2013 ■ 2014 ■ 2015

Personal Care: Share of Cumulative Post Interactions by Social PlatformJuly–August 2015, n=81.2M Interactions Registered Across 231 Brand Pages/Accounts/Channels

Source: L2, Inc.

94% 98% 92% 60% 85% 91% 47% 77% 83% 32% 42% 55% 26% 36% 30%

0.6%1.9%

INSTAGRAM TWITTERFACEBOOK

YOUTUBE

0.1%97.4%

Source: L2, Inc.Note: Post Interactions are defined as: (1) likes, comments, or shares on Facebook; (2) retweets or favorites on Twitter; (3) likes or comment on Instagram; and (4) video views on YouTube.

KEY FINDINGS SOCIAL MEDIA

Social MediaA longitudinal analysis of social platform adoption across the Index shows that Personal Care mirrors trends found in adjacent verticals such as Home Care. Presence on YouTube, Facebook, and Twitter is nearing saturation, but brands are still experimenting with content creation on emerging platforms. In particular, Instagram witnessed a 13-point jump in adoption year over year, with the majority of the Index now supporting brand activity on the channel (55 percent or nearly double the brand presence on Pinterest). Meanwhile, a handful of brands (ACT, Lubriderm, Softsoap, TENA) fail to maintain active accounts on any of the social media channels surveyed. These holdouts have effectively missed the window to establish organic communities in advance of the rising costs required to achieve and maintain extended reach on select platforms.12

12. “An Update to News Feeds: What It Means for Businesses,” Facebook.com, November 2014.

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12%

53%

35%

53%

16%31%

59%

10%31%

Personal Care: Mobile Site InvestmentsAcross Time

2013–2015n=51 Brands Present in All Studies

Responsive DesignIndependent Mobile SiteNo Mobile Optimiziation

2013 2014 2015

Source: L2, Inc.

Although most P&G brands (except Pampers) supported mobile sites in 2014, the recent spate of desktop site relaunches were accompanied by mobile site overhauls. Generally speaking, the revamped mobile sites boast faster load times (in the 80th percentile on average) and more mobile-friendly navigation elements, such as the ability to vary tile sizes on product collection pages (57 percent versus the 17 percent Index average). However, there is room for improvement,

comScore Blog, April 13, 2015.

KEY FINDINGS MOBILE

Mobile SiteSupport for mobile-optimized sites has now become “table stakes,” evidenced by an adoption rate cresting 90 percent across the set of brands tracked since 2013. Google’s recent move to prioritize “Mobile-Friendly” sites over others in mobile search results helped cement this changeover, as any brands still lacking a mobile site now risk diminished page relevance (and consequently, lower site traffic from mobile devices).13,14

13. “Google’s ‘Mobilegeddon’ Was a Big Deal, After All,” Alistair Barr, Blogs.wsj.com, July 15, 2015.14. “Mobile Internet Usage Skyrockets in Past 4 Years to Overtake Desktop as Most Used Digital Platform,” Kate Dreyer,

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SUPPLEMENT SUBSCRIPTION BRANDS

In an attempt to staunch losses to razor subscription programs, Gillette launched Gillette Shave Club in early 2015 and, more recently, migrated the program to its own site (GilletteShaveClub.com) which mimics those of its competitors in layout. However, it does not offer several features common to its rivals, including a content-rich blog, guided selling on site, and live chat. Furthermore, in contrast to Dollar Shave Club’s easy one-page checkout, Gillette Shave Club requires a 14-field account registration process first, followed by a multipage checkout process. Gillette’s experiment may be too little too late, as a comparison of monthly unique visitors shows that the combined site traffic to Gillette’s main site (www.gillette.com), and its shave club offshoot in July was just one-seventh of Dollar Shave Club’s traffic. Year over year, gillette.com traffic has declined 65 percent, while traffic to dollarshaveclub.com is up 59 percent.

Source: L2, Inc. *Present at time of evaluation though no longer available.

Personal Care: Feature Set Comparison for Razor Subscription SitesAugust 2015

Personal Care: Web Traffic Comparison for Razor Subscriptions SitesJuly 2014–July 2015 ■ gillette.com ■ harrys.com ■ honest.com ■ gilletteshaveclub.com ■ dollarshaveclub.com

Dollar Shave Club’s account landing page is a ‘one-stop shop’ for subscriber needs, including shipping history of past boxes and a template for

TESTIMONIALS BLOGGUIDEDSELLING

PERSONALIZEDSITE EXP. LIVE CHAT

REFERRALPROGRAM

UGCINTEGRATION

NUMBER OFCHECKOUT PGS.

4

4

1

*

0

0.2

0.6

1.0

1.4

1.8

MON

THLY

UN

IQUE

VIS

ITOR

S (IN

MIL

LION

S)

JUL2014

SEP2014

NOV2014

JAN2014

MAR2015

MAY2015

JUL2015

0.4

1.2

0.8

1.6

Source: Compete.com

Portrait of a Subscription Brand (Cont’d)

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DIGITAL MARKETING 27 Brand Search

28 Category Search (Organic)

30 Category Search (Paid)

32 Display Advertising

33 TV Advertising

SOCIAL MEDIA34 Social Media

36 Youtube

37 Facebook

39 Instagram

40 Twitter

MOBILE41 Mobile Site

42 Mobile Advertising

43 Mobile Apps

METHODOLOGY

DIGITAL IQ RANKING 6 Company of Genius

8 Gifted

9 Average

10 Challenged

12 Feeble

KEY FINDINGS 13 Digital IQ Distribution

14 Enterprise Value

15 Biggest Winners & Losers

SITE & E-COMMERCE 16 Brand Site

17 Enterprise Templates

18 E-Tailer Handoff

19 E-Tailer Performance

20 E-Tailer Reviews

22 E-Tailer Visibility

23 E-Tailer Investments

24 Amazon Marketplace

SUBSCRIPTION BRANDS44 Subscription Overview

45 Portrait of a Subscription Brand

47 Search

48 Display Advertising

49 Social Media: Razor Brands

50 Social Media: Diaper Brands

51 Mobile Site

FLASH OF GENIUS52 YouTube Advertising

53 Emerging Platforms

54 SEO & SEM

55 Guided Selling on Site

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