Consumer Segmentation: Segment Summaries & Overall Market Dynamics - Fact or fiction: Deconstructing myths about the female fragrance consumer ...

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Consumer Segmentation: Segment Summaries & Overall Market Dynamics - Fact or fiction: Deconstructing myths about the female fragrance consumer ...
Consumer
                           Segmentation:
                  Segment Summaries &
                 Overall Market Dynamics
                        Fact or fiction: Deconstructing myths
                       about the female fragrance consumer

    March 2017           Contact: Lisa Cavanaugh (lisa.cavanaugh@gfk.com)
                                  Karen Goldstein (karen.goldstein@gfk.com)

© GfK 2017                                                                    1
Consumer Segmentation: Segment Summaries & Overall Market Dynamics - Fact or fiction: Deconstructing myths about the female fragrance consumer ...
Research Specifications
    The following reflects GfK’s research specifications:

     Methodology                Qualifications                               Sample                        How to Read
     § Self-administered        § Used perfume, body mist, scented body      § N=1,975 total sample        § Data/charts in grey is the
       Internet survey            lotion or essential oil for special                                        total sample
                                  occasions or more often AND be open to      1. N=1,869 perfume users
     § Internet interviewing                                                                               § Data/charts in segment
                                  using perfume                               2. N=1,566 body mist users
       among online                                                                                          colors are for that
       panelists, 25 minute     § Fragrance types described to                3. N=1,702 scented body        segment
       survey                     respondents as:                                lotion users              § ÓÔ indicates significant
                                  § Perfume/eau de parfum/eau de              4. N=1,077 essential oil       differences from the total
     § Utilize GfK’s                 toilette                                    users                       sample at 95%
       nationally                                                                                            confidence
                                  § Body spray (lower concentration of
       representative                scent in a mist bottle)                                               § For MRI data, the
       KnowledgePanel                                                         Women are age 16-65 years
                                  § Scented body lotion (usually a                                           segment percent is
       calibrated with opt-in                                                 old
                                    stronger scent, purchased specifically                                   shown, and the index is
       panels                       to be a fragrance on the body)            Includes representative        compared to the total of
                                                                              sample of Hispanics, both      all segments
                                  § Essential oil used as fragrance on the    English and Spanish
                                    body                                      speaking

© GfK 2017                                                                                                                                2
Consumer Segmentation: Segment Summaries & Overall Market Dynamics - Fact or fiction: Deconstructing myths about the female fragrance consumer ...
Common Themes

© GfK 2017          3
Consumer Segmentation: Segment Summaries & Overall Market Dynamics - Fact or fiction: Deconstructing myths about the female fragrance consumer ...
Common Themes
    Love (and use) of fragrance is          Mass and Prestige shoppers are She buys fragrance as a treat
    defined by attitude, not age            the same woman, and she        for herself
                                            shops across channels

    § What really differentiates the        § Across most segments, women wear        § Most segments are mostly inwardly
      segments are attitudes. While there     and buy a variety of forms. And           directed – she’s motivated to wear
      are small skews, younger and older      they’re buying both mass and              and buy fragrance for herself, not
      consumers are found in every            prestige. Generally they shop online,     directly to be appealing to others. It’s
      segment. There may be opportunity       and they shop offline. They aren’t        about how it makes her feel – to lift
      to talk to women based on their         exclusive.                                her mood or as a treat. Is that what
      attitudes, not their demographics.                                                the industry communicates to her?
© GfK 2017                                                                                                                     4
Consumer Segmentation: Segment Summaries & Overall Market Dynamics - Fact or fiction: Deconstructing myths about the female fragrance consumer ...
Common Themes, continued
    She wants a long-lasting                     Latinas are a strong target, and
    fragrance that’s also suitable for           there are two key segments with
    work                                         strong Latina representation

    § Many of the segments desire long-lasting   § In general fragrance is more important to
      fragrance, but they also are looking for     them and they started using at a younger
      fragrance that’s more suitable for work      age. They like to shop for it and are more
      (though these needs vary in degrees by       likely buying in department stores. One
      segment). These are potentially              reason they don’t use more is because
      opportunity spaces for innovation.           they forget to put it on. Are you talking to
                                                   them and remind them to use?
© GfK 2017                                                                                        5
Consumer Segmentation: Segment Summaries & Overall Market Dynamics - Fact or fiction: Deconstructing myths about the female fragrance consumer ...
Segment Summaries

© GfK 2017              6
Meet the Segments…

                                      Uninvolved
                                      Occasional
                                          s
                         Fringe
                        Fragrancers

© GfK 2017                                     7
Size of segment
                      I LOVE fragrance– I’m an self-proclaimed expert and like to share my
                      expertise with others. I started wearing perfume as a pre-teen and now
                      wear all types very frequently. I have a signature scent, but also like to
                      experiment and match my scent to my mood or the occasion. I layer scents                         Value of segment
                      to create a lasting scent and buy fragrances that come from a collection. My               24%
                      fragrance usage has increased over time and I expect it to continue to
                      increase.

     Demographics                             Fragrance Usage*                                                  Avg. # Bottles Own*                                Brand Usage (unaided)
                                                           Total                       Daily    Weekly                                                        Most mentioned brands
 •    Less likely to be Caucasian                                                                                 4.5 á
                                                                                                                           3.8á     3.6
      (46%â vs. 59%) and more                                                          58%á      93%á                                                                                                   29%
      likely to be Hispanic (33% á                                            99%á
                                                                                                                                                2.5
      vs. 19%).                                                                        49%á      82%á                                                                                              26%
                                                                            93% á
 •    Less likely to live in the
                                                                                                                                                                                               20%á
      Midwest (12%â vs. 21%)                                                           44%á      78%á
                                                                          84% á
                                                                                                                                                                                             15%
        Age                                                                            30%á      57%á
       18-34               42%                                          75%á
                                                                                                                                                                                      10%

     Age Started Using*              Beauty Routine and Fragrance*                    Occasions Use by Fragrance*                                      Change In Fragrance Usage*
 •    Perfume (27%á vs. 15%)        • Perfume users are more likely to apply         Segment higher than average on…                                  Segment tips toward:
      and Body Mist users             perfume as part of their regular beauty             Work, school, casual dining, party/special event,                                Past              Future
      (36%á vs. 25%) are more         routine (62%á vs. 40%) or as a routine              time at home, romantic evening                                 Total
      likely to start using as a      outside the beauty routine (31%á vs.                                                                             Fragrance         Increased           Increase
      pre-teen.                       22%)                                                School, casual dining, time at home, gym, before
                                                                                          bed, romantic evening                                                          Increased           Increase
 •    Essential oil users (43%á     • Perfume is far less likely to be an after-
      vs. 32%) are more likely to     thought (6%â vs. 35%)                                                                                                              Increased           Increase
      start using in the 20’s.                                                            Running errands, gym, before bed
                                    • Body mist is far less likely to be an after-                                                                                       Increased           Increase
                                      thought (23%â vs. 34%)
                                                                                         Party/special event, gym, romantic evening                                      Increased           Increase

© GfK 2017      *Among category users      áâ Indicates sig. higher/lower than total at 95% confidence                       Perfume          Body lotion      Body Mist     Essential oil              8
Size of segment                        Value of segment
                       9%                                       24%

   Fragrance Importance                                     Most Important Fragrance Needs (T2B)                                         Appropriate to Wear (T2B)

                                                                              It lasts all day 76%á (64%)                                Party/special event – 95%á (88%)
     Ranked 1/2 in importance          Leading Edge
     compared to other beauty           Consumers:                    It is high quality fragrance 69%á (50%)                            Dining out – 92%á (81%)
      categories: 15% (16%)                                        It is acceptable to wear at work 62%á (44%)                           At work – 82%á (66%)
                                             36% á
                                                                       It is good for sensitive skin 50% (41%)                           Loved ones at home – 82%á (64%)
    T3B agree that “I really don't                                                                                                       At school – 66% (58%)
       pay much attention to                                  I am familiar with many different types of scents used
    fragrances, it is just not that                                         in fragrances 53%á ( 34%)
   important to me”: 1% Ô (33%)

  Top Reasons Wear Fragrance (T3B)               Skews toward…             Top Fragrance Attitudes (T3B)
                                                                                                                                                                Also higher on…
  Makes me feel fresh - 96%á (80%)                   Both
                                                                               Few favorites that are always a part of my collection                 88%á • I choose a fragrance based on the
  To lift my mood - 92%á (71%)                       Both                                                                                                     occasion
                                                                                           I enjoy receiving the brand I use as a gift              82%á • I like using fragrances that come from a
  To express my individuality - 88%á (64%)           Both                                                                                                     fragrance collection
                                                                           Where I buy doesn’t matter, as long as it’s a good brand                72%á     • I enjoy receiving fragrances as a gift
  Makes me feel sophisticated - 85%á (55%)           Both
                                                                                                                                                              regardless of the scent
  Good memories associated - 82%á (60%)                                                I like to experiment with different fragrances               79%á
                                                     Both                                                                                                   • I want to know more about ingredients in
                                                                                     I have a signature scent -- it's part of who I am             75%á       fragrances 61%
                                                                                                                                                            • I prefer to buy fragrances that have
  I want fragrance to make me feel…(Ranked 1 or 2)                       Use same fragrance in diff. forms to create a lasting scent              67%á        been around a long time
                                                                                                                                                            • It's more realistic for me to have a
                                                                                                    I match my fragrance to my mood                76%á
                                                                                                                                                              designer fragrance brand than designer
Fresh – 29%â (38%) Confident – 26% (26%) Happy–                                                                                                               clothing or other accessories
Sexy – 26% (22%)     Elegant – 26%á (18%) 20% (27%)                                                                                                         • Most of the time I buy fragrances on
Provocative – 10% á (3%)                                                                                                                                      impulse when out shopping for other
                                                                                                            Perfume             Non-perfume                   things
© GfK 2017   *Among category users    áâ Indicates sig. higher/lower than total at 95% confidence                                                                                                 9
Size of segment                                 Value of segment
                          9%                                                 24%

  Fragrance Shopping Statement Agreement (T3B)                                            Fragrance Shopping Behaviors              Gifting Fragrance

           Good value for the money is important to me                                    Purchase Channel (P6M)                   Received Fragrance as a gift (% Yes)
                                                                               92%á
 The places I shop for fragrance carry the brands I want                       91%á       In person (at a store) – 90%á (68%)         80%             77%á
                                                                                          Online – 50%á (23%)                         60%
                                                                                                                                                                 54%á
            I like to get fragrance samples when in-store                      93%á                                                                                            58%
                                                                                                                                      40%
                                                                                          More likely to shop at…                                                                        19%
               I like to go to stores to try new fragrances                     95% á                                                 20%
   The store that I buy fragrance from is important to me                63%á                                                          0%
                                                                         á                Beauty specialty
    The fragrance shopping experience is overwhelming              21%
                                                                                          Brand specialty
                                  I buy fragrances online                60% á                                                     Fragrance Gifted Attitudes (T3B)
                                                                                          High end dept.
     I use the internet to narrow down, then buy in store                56% á            Mainstream dept.                         • This segment is more likely to receive fragrance as gift
                                                                                                                                     as long as it’s a brand she uses (73%á vs. 59%) and
                                                                                          Discount dept.
                                                                                                                                     enjoy receiving fragrance as a gift, regardless of the
  Top Fragrance Purchase Triggers                                                         Advice/Information on Purchases            scent (66%á) vs.45%.They’re less likely to agree that
                                                                                                                                     fragrances are too personal to receive as gifts (14%â
                                                              Also higher on…             Friend/family member – 49%á (36%)          vs. 31%).
    Running out/running low                  63%                                          Store sales person – 35%á (24%)
                                                          When I have a special
                                                                                          Brands that I like/follow – 38%á (23%)
              To treat myself                  75%á
                                                          occasion coming up–
                                                                                          My favorite magazines – 40%á (18%)        Buying Styles (MRI) – where over-index
                                                          33% á (19%)
                                                                                          Significant other/partner – 17% (14%)
      Need gift for someone             38% á             See an ad & inspired                                                      Buyers of the Best           Swayable Shopaholics
                                                          to shop –                       Most Influential to Purchase (P6M)        (quality matters; brand      (shop because they want to;
     Shop because I enjoy it                57%á           24% á (12%)                                                              loyalty; comfortable w/      want emotional payoff from act
                                                                                Sample fragrance – 75%á (48%)                       technology)                  of buying; impulse; pay extra for
        Spur of the moment                                                      Free trial bottle – 49%á (39%)                                                   image)
                                        35%á                                                                                        Index = 160 (22%)
                                                                                Free gift w/ purch offer – 38%á (26%)                                            Index = 119 (43%)
  Have gift card/credit to use    21%                                           In-store displays – 39%á (24%)
                                                                                Ad w/ scent strip – 41%á (23%)
© GfK 2017      *Among category users áâ Indicates sig. higher/lower than total at 95% confidence                     Perfume      Body lotion       Body Mist     Essential oil             10
Size of segment                           Value of segment
                         9%                                         24%

       Top Barriers to Using Perfume More Often                                          Need Gap
                                                                                       They are significantly higher vs. total on most importance and satisfaction metrics
   Less likely to say:
   • My spouse/partner doesn’t like it (1%Ô vs. 4%)                                                                               80%

                                                                                          Importance (Extremely/Very Important)
                                                                                                                                                                                                                           Lasts all day
                                                                                                                                             Biggest areas of opportunity for
                                                                                                                                             segment (high importance /
                                                                                                                                  70%        lower satisfaction):                                                                     High quality
                                                                                                                                             None for this segment
       Top Triggers for Using Perfume More Often
                                                                                                                                  60%                                                          It is good for sensitive
   •   If it was less expensive (84%á vs. 75%),                                                                                                                                                          skin                      Acceptable at work
   •   If the scent lasted longer (77%á vs. 64%)
   •   If I could control strength of the scent (71%á vs. 60%)                                                                                                                                                             Portable
                                                                                                                                  50%
   •   If the quality for the price could be trusted (72%á vs. 59%).
                                                                                                                                                                                                              I can buy it anywhere
   •   They are higher than total on nearly all triggers.
                                                                                                                                                                       Lighter version of my
                                                                                                                                                                                                      Many forms of the
                                                                                                                                  40%                                      favorite scent                                      It comes in small sizes
                                                                                                                                                                                                       same fragrance
       Interest in Online Tools (T2B)
                                                                                                                                                                                                                          Natural fragrance
               75% á              68% á                                                                                           30%      Heavier version of my                  Designed specifically to
                                                       62% á                                                                                  favorite scent
                                                                                                                                                                   Gender-neutral combine more than one                    Comes in an appealing
                                                                           28%á                                                                                      fragrance          fragrance                                 bottle
                                                                                                                                  20%
                                                                                                                                     20%            30%               40%            50%                 60%               70%                80%
         Suggestions      Personality quiz      User reviews           Live chat
       based on what I    recommending                             feature to act as
        already know I      fragrances                                an advisor                                                        Satisfaction (Very satisfied/Satisfied with how well current
             like                                                                                                                                  fragrance options meet these needs)

© GfK 2017     *Among category users      áâ Indicates sig. higher/lower than total at 95% confidence                                                                                                                                                11
Size of segment                              Value of segment
                         9%                                             24%

    General Style Attitudes (T3B)                                                        Fashion & Style Attitudes Segment (MRI) –                              Mobile Attitudes Segment (MRI) –
                                                                                         where over-index                                                       where over-index
     I have different looks depending on my mood/occasion                       86%á
                      I dress with a sense of individual style                  86%á     Fashion First (wear            Fashionable on a Budget                Mobile Ad & App- Mobile App-
                                                                                         brands to impress people;      (believe in power of fashion but       Happy (digital   Happy (fully
    I enjoy shopping for fun, whether I buy something or not                     93%á    trend setters and followers;   careful in how they indulge on                                    integrated digital
                                                                                                                                                               enthusiasts; accept
                                                                                         prefer designers and           designer labels and trends; brands     mobile advertising as      technology into
          More willing to purchase things if can customize it                 74%á       celebrity-endorsed; rely on    are important, loyalty limited to a    enhancement of             everyday lives; love
                                I make an effort to feel sexy                            magazines; not afraid to go    few lines; buy new clothes for the     devices’ capabilities;     mobile devices; quickly
                                                                               81%á      over budget)                                                                                     adopt new apps;
                                                                                                                        season; do not like to overspend)      engage with marketers
             Buy more fashion items online than a year ago                                                                                                     via text messaging)        customize phones to
                                                                              68%á       Index = 165 (16%)              Index = 137 (12%)                                                 personality)
        More likely to buy a product designed by a celebrity           29%á                                                                                    Index = 127 (31%)
                                                                                                                                                                                          Index = 128 (35%)

    Differentiating Personal Values (T3B)                        Digital / Advertising Attitudes (MRI)                                        General Attitudes Segment (MRI) – where
                                                             Very/somewhat important to use social networking for…
                                                                                                                                              over-index
    More likely to value Ó     Less likely to value Ô
      Authenticity (95%)                                     To find out about products and services – 43% (129)                             Knowledgeable Nesters (home is primary focus; value
     Being youthful (88%)                                                                                                                    order but seek variety in everyday life; important to keep homes net
                                                             To rate or review a product or service – 27% (122)
                                                                                                                                             and enjoy showing home to guests)
       Romance (87%)                                         To show support for my favorite companies or brands – 32% (132)
      Experiences (87%)                                                                                                                      Index = 122 (52%)
                                                             To receive exclusive offers, coupons or other discounts – 41% (122)
     Looking good (79%)
          Sex (71%)                                          To gain access to VIP or Members-Only events – 24% (133)
       Adventure (58%)                                       Used cell/mobile apps in past 30 days…                                           Other Interests (MRI)
        Wealth (42%)                                         Shopping/retail – 26% (127)                                                    Played video games in last 30 days – 31% (108)
         Status (42%)                                                                                                                       Regular exercise (2+ times/wk) at a club – 19% (122)
                                                             Describes attitude completely (8-10 on 10-pt scale)…
                                                             Advertising helps keep me up-to-date about products & services that I          Wrote in an online blog (past 30 days) – 4% (147)
                                                             need or would like to have – 24% (151)                                         Car type most associate with: Green & Trendy – 27% (109)
© GfK 2017    *Among category users       áâ Indicates sig. higher/lower than total at 95% confidence                                                                                             12
Size of segment                        Value of segment
             9%                                       24%

                 Other Interests (MRI) – where over-index                                 Personal behavior towards fragrance (T3B)
             Watched a TV program online – 22% (115)                                 • When it comes to fragrances I'm an expert (47%á
             Wrote an online blog - 4% (147)                                           vs. 17%)
             Read or looked into a digital, not printed, edition of at               • People often ask my opinions about what fragrance
             least one magazine - 10% (135)                                            they should buy/use (68%á vs. 22%)
                                                                                     • I am very active online and often text or blog about
             Magazine Groups: Net Audience – Conde Nast
                                                                                       experiences I have with products in the fragrance
             package – 33% (115)
                                                                                       category(33%á vs. 14%)

             Websites visited                                                             Expertise and Knowledge in…
             •    Google+ - 26% (128)                                                •    Beauty (60%á vs. 37%)
             •    Instagram - 37% (120)                                              •    Fashion – Clothes (63%á vs. 33%)
                                                                                     •    Fashion – Shoes (52%á vs. 31%)
             •    Yelp - 11% (141)
                                                                                     •    Shopping (75%á vs. 42%)
             •    MSN Entertainment - 4% (164)
                                                                                     •    Healthy Lifestyle (60%á vs. 37%)
             •    USAToday - 8% (128)                                                •    Products for Babies or Children (40%á vs. 30%)
             •    abcNews - 11% (150)
             •    eHow - 10% (146)
             •    Yahoo! Answers - 11% (135)

© GfK 2017                  áâ Indicates sig. higher/lower than total at 95% confidence                                                       13
Fragrance is a must-have for me, especially perfume and essential oils                Size of segment
                      (I’m a super heavy/heavy user). Status is important and I like to be the            22%
                      center of attention. Fragrance makes me feel fashionable; it allows me
                      to affordably wear designer brands. I like small bottles and to mix                   Value of segment
                      scents and forms. The internet is my go-to place for shopping, learning                   18%
                      what my favorite celebs like, and reviewing/rating products.

     Demographics                           Fragrance Usage*                                             Avg. # Bottles Own*                                Brand Usage (unaided)
 •    Younger on average (36.18â                        Total                       Daily     Weekly
      vs. 40.37)                                                                                                                                                                          23%â
                                                                                     44% á     81% á                  3.1     3.1
 •    Less likely to be Caucasian                                        97%á                             3.0
      (47%â vs. 59%) and more                                                                                                            2.1                                              23%
                                                                                     44% á     80% á
      likely to be African American                                    89%á
      (20% á vs. 13%).                                                                                                                                                             14% á
                                                                                     41% á     74% á
 •    Lower average HH income                                          89%á                                                                                                    10%
      (67Kâ vs. 78K)
                                                                  69% á              23% á     53% á
        Age                                                                                                                                                                   6%
       18-34                47%á

     Age Started Using*               Beauty Routine and Fragrance*               Occasions Use by Fragrance*                                   Change In Fragrance Usage
 •    Perfume (9%á vs. 5%)         • Essential oil users are more likely to      Segment higher                 Segment lower                  Segment tips toward:
      users are more likely to       apply fragrance as part of their            than average on…               than average on…                                    Past              Future
                                                                                                                  Party/special event,            Total
      start using in their 30’s.     regular beauty routine (30%á vs.                  Gym, before bed                                          Fragrance         Increased           Increase
                                     21%)                                                                         romantic evening
                                                                                                                                                                  Increased           Increase
                                   • Essential oil is far less likely to be an
                                     after-thought (35%â vs. 48%)                                                                                                 Increased           Increase

                                                                                                                                                                  Increased           Increase

                                                                                                                 Party/special event                                Same               Same

© GfK 2017      *Among category users     áâ Indicates sig. higher/lower than total at 95% confidence                  Perfume         Body lotion      Body Mist     Essential oil              14
Size of segment                       Value of segment
                             22%                                        18%

   Fragrance Importance                                         Most Important Fragrance Needs (T2B)                                       Appropriate to Wear (T2B)

     Ranked 1/2 in importance            Leading Edge                                  It lasts all day
     compared to other beauty             Consumers:                                     64% (64%)                                         At a party/special event – 71%â (88%)
      categories: 28%á(16%)                                                    It is high quality fragrance                                Dining with friends/family – 66%â (81%)
                                                                                         54% (50%)                                         At work – 60% (66%)
    T3B agree that “I really don’t                                        It is acceptable to wear at work
                                                  5% â                                                                                     Loved ones at home – 64% (64%)
        pay much attention to                                                            49% (44%)
     fragrances, it is just not that                                          It is good for sensitive skin                                At school – 52% (58%)
    important to me”: 36% (33%)                                                         51%á(41%)

  Top Reasons Wear Fragrance (T3B)                Skews toward…               Top Fragrance Attitudes (T3B)

  Makes me feel fresh - 74% (80%)                        Both                                                                                                      Also higher on…
                                                                                 Few favorites that are always a part of my collection               74%
  To lift my mood - 65% (71%)                            Both                                                                                               • I enjoy receiving fragrances as a gift
                                                                                             I enjoy receiving the brand I use as a gift           60%        regardless of the scent
  To be attractive to others - 60% (57%)                 Both                                                                                               • It's more realistic for me to have a
                                                                              Where I buy doesn’t matter, as long as it’s a good brand             53%        designer fragrance brand than designer
  To express my individuality - 59% (64%)                Both
                                                                                                                                                              clothing/accessories
  Makes me feel sophisticated - 55% (55%)                Both                             I like to experiment with different fragrances           58%
                                                                                                                                                            • Most of the time I buy fragrances on
                                                                                       I have a signature scent -- it's part of who I am           56%        impulse when out shopping for other
                                                                                                                                                              things
  I want fragrance to make me feel…(Ranked 1 or 2)                        Use same fragrance in diff. forms to create a lasting scent              56% á

 Happy – 29% (27%) Sexy – 26% (22%)          Romantic – 14% (12%)                                    I match my fragrance to my mood               57% á
 Fresh – 28%â (38%) Confident – 21% (26%)    Fashionable 14% á
                                             Powerful 8% á (4%)
                                                                                                              Perfume             Non-perfume
© GfK 2017    *Among category users    áâ Indicates sig. higher/lower than total at 95% confidence                                                                                             15
Size of segment                               Value of segment
                                 22%                                              18%

  Fragrance Shopping Statement Agreement (T3B)                                            Fragrance Shopping Behaviors                        Gifting Fragrance
                                                                                         Purchase Channel (P6M)                              Received Fragrance as a gift (% Yes)
             Good value for the money is important to me                 58%â
                                                                                         In person (at a store) – 64% (68%)
 The places I shop for fragrance carry the brands I want                 59% â           Online – 32%á (23%)                                  80%        60% á        55%            51% á
             I like to get fragrance samples when in-store                                                                                    60%
                                                                         59% â           More likely to shop at…                                                                                 24%á
                                                                                                                                              40%
                I like to go to stores to try new fragrances             59%                                                                  20%
  The store that I buy fragrance from is important to me                53% á            Beauty specialty                                      0%
                                                                                         Brand specialty
   The fragrance shopping experience is overwhelming                   43%
                                                                                         High end dept.
                                   I buy fragrances online             45% á                                                                 Fragrance Gifted Attitudes (T3B)
                                                                                         Mainstream dept.
     I use the internet to narrow down, then buy in store              49% á             Discount dept.                                      • This segment is more likely to enjoy receiving
                                                                                                                                               fragrance as a gift, regardless of the scent
                                                                                         Advice/Information on Purchases                       (53%á vs. 45%) and usually return fragrances
  Top Fragrance Purchase Triggers                                                        Friend/family member – 33% (36%)                      received as gifts (26%á vs. 14%).
                                                                                         Store sales person – 22% (24%)
                                                               Also higher on…           Brands that I like/follow – 24% (23%)
   Running out/running low                44% â                                          My favorite magazines – 16% (18%)
                                                           • None
                                                                                         Significant other/partner – 17% (14%)
               To treat myself               50%                                         • Social Media 20% á(11%)
                                                                                                                                              Buying Styles (MRI) – where over-index
     Need gift for someone
                                                                                                                                             Swayable Shopaholics
                                       23%                                               Most Influential to Purchase (P6M)                  (shop because they want to;
                                                                                         Sample fragrance – 34%â(48%)                        want emotional payoff from act
    Shop because I enjoy it             32% á                                                                                                of buying; impulse; pay extra for
                                                                                         Free trial bottle – 34% (39%)
                                                                                         Free gift w/ purch offer – 22% (26%)                image)
        Spur of the moment             19%                                               In-store displays – 21% (24%)                       Index = 185 (66%)
                                                                                         Ad w/ scent strip – 17% (23%)
 Have gift card/credit to use          20%                                               • Social Media 8% á (5%)
                                                                                         • Celebrity 8% á(5
© GfK 2017      *Among category users         áâ Indicates sig. higher/lower than total at 95% confidence                        Perfume   Body lotion        Body Mist          Essential oil      16
Size of segment                         Value of segment
                            22%                                          18%

       Top Barriers to Using Perfume More Often                                          Need Gap
   More likely to say:                                                               •         They are significantly higher on importance on almost all criteria, but lower vs. total on satisfaction
   • My favorite fashion brands don't offer a perfume (7%Ó vs. 2%)                             with: It comes in many forms of the same fragrance, I am familiar with many different types of
                                                                                               scents used in fragrances, It is high quality fragrance, It is portable/easy to take on-the-go, It is
   Less likely to say:                                                                         acceptable to wear at work.
   • Other scented products are a good substitute (9%Ô vs. 18%)
                                                                                                                                 70%

                                                                                         Importance (Extremely/Very Important)
                                                                                                                                                                                                                     Biggest areas of opportunity
                                                                                                                                                                                                                     for segment (high importance /
       Top Triggers for Using Perfume More Often                                                                                                                                          Lasts all day
                                                                                                                                                                                                                     lower satisfaction):
   •   Answer q’s and have the right fragrance suggested (58%á vs. 46%)                                                          60%                                                                                 Fragrances that are
                                                                                                                                               Familiar with different types
   •   If it will come in smaller sizes (52%á vs. 44%)                                                                                              of scents used in                                                acceptable at work, that are
                                                                                                                                                        fragrances
   •   If I knew more about the ingredients (51%á vs. 40%)                                                                                 Acceptable                               High quality                     natural, portable and can buy
                                                                                                                                            at work                                It is good for sensitive skin     anywhere
   •   If shopping was more enjoyable (51%á vs. 39%)                                                                             50%                           Portable
   •   If I knew the story behind the perfume (43% á vs. 27%)                                                                               Natural                    I can buy it anywhere
                                                                                                                                          fragrance                                                Many forms of the same
   •   They are higher than total on most triggers                                                                                                                                                       fragrance
                                                                                                                                 40%                                      Comes in an appealing
       Interest in Online Tools (T2B)                                                                                                                                            bottle
                                                                                                                                 Designed specifically to                It comes in small sizes
                                                                                                                                 combine more than one
                                                                                                                                                             Lighter version of my
                                                                                                                                       fragrances
                                                                                                                                                                 favorite scent
               42%â               41%                40%                                                                         30%
                                                                         28% á                                                                                    Gender-neutral fragrance

                                                                                                                                          Heavier version of my
                                                                                                                                             favorite scent
         Suggestions     Personality quiz     User reviews           Live chat                                                   20%
       based on what I   recommending                            feature to act as                                                  20%                     30%                    40%                    50%               60%             70%
        already know I     fragrances                               an advisor
             like                                                                                                                         Satisfaction (Very satisfied/Satisfied with how well current
                                                                                                                                                     fragrance options meet these needs)
© GfK 2017     *Among category users    áâ Indicates sig. higher/lower than total at 95% confidence                                                                                                                                               17
Size of segment                            Value of segment
                              22%                                            18%

  General Style Attitudes (T3B)                                                        Fashion & Style Attitudes Segment (MRI) – where over-                                     Mobile Attitudes Segment
                                                                                       index                                                                                     (MRI) – where over-index
  I have different looks depending on my mood/occasion                   59% â         Fashionable on a              Fashion First (wear         Function Over                   Mobile Ad & App-Happy
                                                                                       Budget (believe in            brands to impress           Fashion (indifferent            (digital enthusiasts; accept mobile
                   I dress with a sense of individual style              59% â
                                                                                       power of fashion but          people; trend setters       to fashion and style;           advertising as enhancement of
 I enjoy shopping for fun, whether I buy something or not                              careful in how they           and followers; prefer       replacement rather than         devices’ capabilities; engage with
                                                                          63%
                                                                                       indulge on designer           designers and celebrity-    impulse buyers; only            marketers via text messaging)
       More willing to purchase things if can customize it             46%             labels and trends; brands     endorsed; rely on           buy when have to and
                                                                                       are important, loyalty        magazines; not afraid to    spend within budget;            Index = 156 (38%)
                             I make an effort to feel sexy             48%             limited to a few lines; buy   go over budget)             don’t keep up with
          Buy more fashion items online than a year ago                                new clothes for the           Index = 142 (14%)           trends)
                                                                      42%              season; do not like to
                                                                                       overspend)                                                Index = 138 (24%)
     More likely to buy a product designed by a celebrity          25% á
                                                                                       Index = 170 (15%)

  Differentiating Personal Values (T3B)                        Digital / Advertising Attitudes (MRI)                                             General Attitudes Segment (MRI) – where
                                                                                                                                                 over-index
                                                              Very/somewhat important to use social networking for…
   More likely to value Ó    Less likely to value Ô
                                                              To find out about products and services – 38% (114)                               Status Seekers (value social and career advancement;
       Wealth (38%)             Authenticity (61%)                                                                                              lifestyles meant to impress; enjoy being center of attention)
                                                              To rate or review a product or service –30% (133)
        Status (38%)             Romance (54%)                                                                                                  Index = 221 (31%)
                                                              To show support for my favorite companies or brands – 33% (135)
                                 Simplicity (52%)             To receive exclusive offers, coupons or other discounts – 40% (120)
                               Being youthful (50%)           To gain access to VIP or Members-Only events – 27% (154)
                                                                                                                                                  Other Interests (MRI)
                                Experiences (49%)             Used cell/mobile apps in past 30 days…
                                                                                                                                                Played video games in last 30 days – 36% (122)
                               Looking good (47%)             Shopping/retail – 21% (103)
                                                                                                                                                Regular exercise (2+ times/wk) at a club – 14% (90)
                                                              Describes attitude completely (8-10 on 10-pt scale)…
                                    Sex (46%)                                                                                                   Wrote in an online blog (past 30 days) – 3% (103)
                                                              Advertising helps keep me up-to-date about products & services that I
                                                              need or would like to have – 17% (109)                                            Car type most associate with: Green & Trendy – 41% (162)
© GfK 2017    *Among category users        áâ Indicates sig. higher/lower than total at 95% confidence                                                                                                           18
Size of segment                Value of segment
                               22%                               18%

      Other Interests (MRI) – where over-index
  Visited a chat room – 7% (144)
  Participated in on-line dating – 3% (140)
  Open to mobile ads in exchange for services like live TV or
  messaging – 35% (157)
  I enjoy being the center of attention – 44% (162)
  Social Networking, Photo Or Video-Sharing Sites Visited:
  • Google+ - 23% (113)
  •    Instagram – 37% (117)
  •    Twitter – 16% (114)
  •    Picasa – 3% (128)
  Websites Used:
  • TV Guide – 3% (126)
  •    Disney.com – 6% (136)
  •    Disneychannel.com – 4% (141)
  •    MTV.com – 4% (144)
  •    Yahoo! Movies – 3% (137)
  •    Careerbuilder.com – 9% (126)
  •    ESPN.com – 11% (123)
  •    Any Spanish language website – 7% (143)

© GfK 2017                                                                         19
Size of segment
                      Fragrance is important for everyday occasions; I wear it everywhere and
                      want it to last all day. Mist and scented lotion are my go-to’s, but I have a lot                        15%
                      of perfume choices that make it into the mix. I’m passionate about
                      fragrance, love to shop in general and fragrance shopping is no different.                          Value of segment
                      The store experience is important to me -- the internet just doesn’t work for                                  20%
                      me when it comes to fragrance shopping. In store, I’m not overwhelmed
                      with the variety and I like to go to the store to try out new fragrances.

     Demographics                            Fragrance Usage*                                                     Avg. # Bottles Own*                                    Brand Usage (unaided)
 •    Less likely to be Caucasian                         Total                       Daily     Weekly
      (48%â vs. 59%) and more                                                                                        3.7 á                 3.7á                                                           39%
                                                                                       36%        74% á                        3.4
      likely to be Hispanic (31% á                                          94%
      vs. 19%).                                                                                                                                                                                      26%
                                                                                       40%á       72% á                                                1.7
 •    Less likely to be college                                           86%á
      educated (15%â vs. 31%)                                                                                                                                                               9%
                                                                                       38%á       76% á
 •    Lower average HH income                                             84%á                                                                                                               13%
      (68Kâ vs. 78K)
                                                                  53%                  15%        37%
        Age                                                                                                                                                                                 12%á
       18-34            32%

     Age Started Using*              Beauty Routine and Fragrance*                   Occasions Use by Fragrance*                                              Change In Fragrance Usage
 •    Perfume (1% â vs. 5%)        • Scented body lotion users are more likely to   Segment higher than average on…                                          Segment tips toward:
      users are less likely to       apply fragrance as part of their regular
                                     beauty routine (50%á vs. 40%)                                                                                           Total                Past              Future
      start using in their 30’s.                                                         Party/special event, formal/special lunch/dinner out with           Fragrance          Increased           Increase
                                   • Body mist users are more likely to apply            friends/family
                                     fragrance as a regular routine, but not
                                     during their beauty routine (43%á vs. 26%)          Formal/special lunch/dinner out with friends/family                                    Increased           Increase
                                   • For perfume, body mist and scented body                                                                                                    Increased           Increase
                                     lotion users, applying fragrance is far less       Running errands, casual lunch/dinner out with friends/
                                     likely to be an after-thought (25%â vs.            family, with friends/family at home, school, gym
                                                                                                                                                                                Increased            Same
                                     35%), (21%â vs. 34%), (18%â vs. 29%)
                                                                                                                                                                                  Same              Increase

© GfK 2017     *Among category users      áâ Indicates sig. higher/lower than total at 95% confidence                            Perfume             Body lotion      Body Mist     Essential oil              20
Size of segment                       Value of segment
                                 15%                                        20%

  Fragrance Importance                                       Most Important Fragrance Needs (T2B)                                          Appropriate to Wear (T2B)

                                                                                       It lasts all day                                     At a party/special event – 96%á (88%)
     Ranked 1/2 in importance          Leading Edge                                    73%á (64%)                                           Dining with friends/family – 93%á (81%)
     compared to other beauty           Consumers:
                                                                               It is high quality fragrance                                 At work – 78%á (66%)
     categories: 23%á (16%)                   18%á
                                                                                         55% (50%)
                                                                                                                                            Loved ones at home – 76%á (64%)
                                                                          It is acceptable to wear at work
    T3B agree that “I really don't                                                                                                          At school – 74%á (58%)
                                                                                         44% (44%)
       pay much attention to
                                                                              It is good for sensitive skin
    fragrances, it is just not that
                                                                                        45% (41%)
   important to me”: 10%Ô(33%)

  Top Reasons Wear Fragrance (T3B)               Skews toward…              Top Fragrance Attitudes (T3B)
                                                                                                                                                                   Also higher on…
  Makes me feel fresh - 95%á (80%)
                                                                                  Few favorites that are always a part of my collection                86%á   • I choose a fragrance based on the
  To lift my mood - 82%á (71%)                             Both                                                                                                 occasion
                                                                                             I enjoy receiving the brand I use as a gift              73%á    • I enjoy receiving fragrances as a
  To express my individuality - 80%á (64%)                 Both                                                                                                 gift regardless of the scent
                                                                            Where I buy doesn’t matter, as long as it’s a good brand                 70%á
  Good memories assoc. with the scent - 79%á (60%) Both                                                                                                       • I like using fragrances that come
                                                                                          I like to experiment with different fragrances               82%      from a fragrance collection
  To please spouse/partner - 70%á (56%)            Both                                                                                                       • I prefer to buy fragrances that have
                                                                                       I have a signature scent -- it's part of who I am            64%         been around a long time
                                                                                                                                                              • It's more realistic for me to have a
  I want fragrance to make me feel…(Ranked 1 or 2)                        Same fragrance in different forms to create a lasting scent                 77% á     designer fragrance brand than
                                                                                                                                                                designer clothing/accessories
                                                                                                     I match my fragrance to my mood                  75%á
 Fresh – 49%á (38%) Confident – 26% (26%) Elegant – 17% (18%)                                                                                                 • Most of the time I buy fragrances
 Sexy – 28% (22%) Happy – 22% (27%)                                                                                                                             on impulse when out shopping for
                                                                                                                                                                other things

                                                                                                              Perfume             Non-perfume
© GfK 2017   *Among category users     áâ Indicates sig. higher/lower than total at 95% confidence                                                                                              21
Size of segment                            Value of segment
                                      15%                                            20%

  Fragrance Shopping Statement Agreement (T3B)                                             Fragrance Shopping Behaviors                    Gifting Fragrance

             Good value for the money is important to me                               Purchase Channel (P6M)                             Received Fragrance as a gift (% Yes)
                                                                             89%á
 The places I shop for fragrance carry the brands I want                     88% á     In person (at a store) – 90%á (68%)                   80%        66%á      62% á
                                                                                       Online – 8%Ô (23%)                                                                    51% á
             I like to get fragrance samples when in-store                                                                                   60%
                                                                            86% á
                                                                                       More likely to shop at…                               40%                                         14%
                I like to go to stores to try new fragrances               79% á                                                             20%
  The store that I buy fragrance from is important to me                47% á                                                                 0%
                                                                                       Beauty specialty
   The fragrance shopping experience is overwhelming               16% Ô               Brand specialty
                                                                                                             No significant differences
                                   I buy fragrances online       3%Ô                   High end dept.                                     Fragrance Gifted Attitudes (T3B)
                                                                                                              from Total on shopping
                                                                 5% Ô                  Mainstream dept.              channels             • This segment is more likely to enjoy receiving
     I use the internet to narrow down, then buy in store
                                                                                       Discount dept.                                       fragrance as a gift, regardless of the scent (60%á vs.
                                                                                                                                            45%)
                                                                                       Advice/Information on Purchases
  Top Fragrance Purchase Triggers                                                                                                         • The segment is less likely to consider fragrances as
                                                                                       Friend/family member – 42% (36%)                     too personal to be given as gifts (21%Ô vs. 31%) and
                                                               Also higher on…                                                              to return fragrances received as gifts (7%Ôvs. 14% ).
   Running out/running low                                                             Store sales person – 35%á(24%)
                                               69% á
                                                           • None                      Brands that I like/follow – 30% (23%)
               To treat myself               58% á                                     My favorite magazines – 23% (18%)                   Buying Styles (MRI) -where over-index
                                                                                       Significant other/partner – 18% (14%)
     Need gift for someone              34% á
                                                                                       Most Influential to Purchase (P6M)                          Does not over-index on any Buying Style
    Shop because I enjoy it             34% á
                                                                                       Sample fragrance – 61%á(48%)
        Spur of the moment                                                             Free trial bottle – 45% (39%)
                                       28% á
                                                                                       Free gift w/ purch offer – 38%á (26%)
 Have gift card/credit to use          29% á                                           In-store displays – 36%á (24%)
                                                                                       Ad w/ scent strip – 28% (23%)
© GfK 2017      *Among category users        áâ Indicates sig. higher/lower than total at 95% confidence                       Perfume    Body lotion      Body Mist     Essential oil         22
Size of segment                       Value of segment
                                15%                                          20%

    Top Barriers to Using Perfume More Often                                          Need Gap
                                                                                    They are significantly higher vs. total on these importance metrics: It lasts all day, It is portable/easy to
   Less likely to say:                                                              take on-the-go. They are more likely than total to be satisfied on: It is high quality fragrance.
   • It is bad for my skin or skin condition/allergies (3%Ô vs. 8%)
   • Variety of options is overwhelming (3%Ô vs. 8%)
                                                                                                                               80%

                                                                                       Importance (Extremely/Very Important)
                                                                                                                                        Biggest areas of opportunity                        Lasts all day
                                                                                                                               70%      for segment (high importance /
     Top Triggers for Using Perfume More Often                                                                                          lower satisfaction):
                                                                                                                                        None for this segment
                                                                                                                               60%
   • If scent lasted longer (77%á vs. 64%)
                                                                                                                                                                                  It is good for sensitive            High quality
                                                                                                                                                                                            skin
                                                                                                                               50%
                                                                                                                                                               Acceptable at work                  Portable
                                                                                                                               40%                          I can buy it anywhere                   It comes in small sizes
                                                                                                                                         Familiar with different
                                                                                                                                        types of scents used in
     Interest in Online Tools (T2B)                                                                                                            fragrances
                                                                                                                                                                                                            Many forms of the
                                                                                                                               30%                                                                           same fragrance
                                                                                                                                                            Lighter version of my      Natural fragrance
                                                                                                                                                                 favorite scent
             58%                                                                                                                     Heavier version of my
                                42%                 39%                                                                                                                                                        Comes in an appealing
                                                                                                                               20%       favorite scent
                                                                                                                                                                          Designed specifically to                       bottle
                                                                         7% Ô                                                                    Gender-neutral           combine more than one
                                                                                                                                                    fragrance                   fragrance
       Suggestions      Personality quiz     User reviews           Live chat                                                  10%
     based on what I    recommending                            feature to act as                                                 10%          20%           30%           40%           50%            60%         70%              80%
      already know I      fragrances                               an advisor
           like                                                                                                                      Satisfaction (Very satisfied/Satisfied with how well current
                                                                                                                                                fragrance options meet these needs)
© GfK 2017   *Among category users     áâ Indicates sig. higher/lower than total at 95% confidence                                                                                                                                         23
Size of segment                            Value of segment
                                      15%                                            20%

    General Style Attitudes (T3B)                                                           Fashion & Style Attitudes Segment (MRI) –                              Mobile Attitudes Segment (MRI) –
                                                                                            where over-index                                                       where over-index
     I have different looks depending on my mood/occasion                         81%á
                                                                                            Fashionable on a Budget Fashion First (wear
                         I dress with a sense of individual style                  84% á    (believe in power of fashion but      brands to impress people;
                                                                                            careful in how they indulge on        trend setters and followers;
                                                                                                                                                                      Does not over-index on any Mobile
    I enjoy shopping for fun, whether I buy something or not                      83% á     designer labels and trends; brands    prefer designers and                            Attitude
          More willing to purchase things if can customize it                               are important, loyalty limited to a   celebrity-endorsed; rely on
                                                                              58%           few lines; buy new clothes for the    magazines; not afraid to go
                                   I make an effort to feel sexy                            season; do not like to overspend)     over budget)
                                                                                 68% á
               Buy more fashion items online than a year ago                                Index = 153 (13%)                     Index = 123 (12%)
                                                                         25% Ô
        More likely to buy a product designed by a celebrity           10%

    Differentiating Personal Values (T3B)                           Digital / Advertising Attitudes (MRI)                                          General Attitudes Segment (MRI) – where
                                                                Very/somewhat important to use social networking for…
                                                                                                                                                   over-index
    More likely to value Ó        Less likely to value Ô
                                                                To find out about products and services – 37% (111)
      Authenticity (96%)
                                                                To rate or review a product or service – 26% (113)                                         Does not over-index on any General Attitude
       Romance (75%)
                                                                To show support for my favorite companies or brands – 23% (93)
     Being youthful (74%)                                       To receive exclusive offers, coupons or other discounts – 33% (100)
      Looking good (72%)                                        To gain access to VIP or Members-Only events – 16% (90)
             Sex (62%)                                          Used cell/mobile apps in past 30 days…                                             Other Interests (MRI)
       Adventure (53%)                                          Shopping/retail – 20% (99)                                                       Played video games in last 30 days –29% (100)
                                                                Describes attitude completely (8-10 on 10-pt scale)…                             Regular exercise (2+ times/wk) at a club – 16% (99)
                                                                Advertising helps keep me up-to-date about products & services that I            Wrote in an online blog (past 30 days) – 2% (84)
                                                                need or would like to have – 21% (132)                                           Car type most associate with: Green & Trendy – 23% (92)
© GfK 2017      *Among category users        áâ Indicates sig. higher/lower than total at 95% confidence                                                                                               24
Size of segment                          Value of segment
                                     15%                                          20%

      Other Interests (MRI) – where over- or under-
  •   index
        Credit Cards - 1 Owned -18% (86)
  •    Investment activity: Financial Advisor/Broker – 4% (73)
  •    Investment activity: Internet site – 3% (81)
  •    Investment activity: Family/friends – 4% (65)
  •    Retirement Or College Savings Plans: Any 401(k) – 12% (81)
  •    Retirement Or College Savings Plans: Traditional IRA – 6% (78)
  •    Retirement Or College Savings Plans: Roth IRA – 4% (76)
  •    On average, brands that are advertised are better in quality than
       brands that are not advertised – 14% (145)
  Apps used in the last 30 days
  •    Healthcare – 9% (119)
  •    Magazine – 7% (134)
  •    Newspaper – 7% (129)

  •    Feel really good about seeing celebrities in the media that share
       my ethnic background - 42% (122)

© GfK 2017                                                                                    25
I use fragrance for many reasons, but I don’t have a particularly strong opinion                Size of segment
                      about it or feel like I need to talk about it. Fragrance is part of my wardrobe for                       19%
                      social occasions when I want to be sophisticated and attractive. I only shop
                      when I need to because the options overwhelm me and I stick to what I know,                     Value of segment
                      so I don’t own as many bottles of perfume as other women (though I do enjoy                                     13%
                      getting my brand as a gift!). Perfume and body lotion are my standards, but I
                      do dabble with body spray and essential oil.

     Demographics                           Fragrance Usage*                                                 Avg. # Bottles Own*                                Brand Usage (unaided)
                                                        Total                       Daily     Weekly
 •    More likely to be Caucasian
      (68%á vs. 59%)                                                                 33%       64%                                                                                                     33%
                                                                          95%                                           2.8       2.9
 •    Higher average HH income                                                                                 2.4Ô                           2.4                                               24%
      (89Ká vs. 78K)                                                                 25%       58%
                                                                     78%
 •    More likely to live in the                                                                                                                                                  7%
      Midwest (27% á vs. 21%)                                           á            27%      47%Ô
                                                                  66%                                                                                                              8%
        Age                                                                          9%       21%Ô
                                                           37%                                                                                                                    6%
                                                                 á
       18-34            32%

     Age Started Using*             Beauty Routine and Fragrance*                 Occasions Use by Fragrance*                                        Change In Fragrance Usage
 •    Essential oil (4%Ô vs.                                                     Segment higher than average on…                                    Segment tips toward:
                                    •   No significant differences from
      11%) users are less               Total on beauty routine and                    Party/special event, formal/special lunch/dinner             Total                Past              Future
      likely to start using as an       fragrance                                      out with friends/family, casual lunch/dinner out             Fragrance         Increased            Increase
      early teen (13-15).                                                              with friends/family
                                                                                                                                                                      Increased            Increase

                                                                                                                                                                      Increased             Same

                                                                                                                                                                         Same           Decrease
                                                                                                                                                                      Increased             Same

© GfK 2017      *Among category users     áâ Indicates sig. higher/lower than total at 95% confidence                     Perfume           Body lotion      Body Mist     Essential oil              26
Size of segment                        Value of segment
                                      19%                                          13%

   Fragrance Importance                                      Most Important Fragrance Needs (T2B)                                               xxx to Wear (T2B)
                                                                                                                                          Appropriate

     Ranked 1/2 in importance                                                          It lasts all day
                                       Leading Edge                                                                                        At a party/special event – 94%á (88%)
     compared to other beauty                                                            70% (64%)
                                        Consumers:                                                                                         Dining with friends/family – 91%á (81%)
      categories: 12% (16%)                                                    It is high quality fragrance
                                                                                         55% (50%)                                         At work –72% (66%)
    T3B agree that “I really don't                                        It is acceptable to wear at work                                 Loved ones at home – 64% (64%)
       pay much attention to
                                               4% Ô                                      41% (44%)                                         At school – 64% (58%)
    fragrances, it is just not that                                           It is good for sensitive skin
   important to me”: 23%Ô(33%)                                                           44% (41%)

  Top Reasons Wear Fragrance (T3B)              Skews toward…              Top Fragrance Attitudes (T3B)
                                                                                                                                                                   Also lower on…
  Makes me feel fresh - 90%á (80%)
                                                                               Few favorites that are always a part of my collection               68%   • I like using fragrances that come from a
  To lift my mood - 85%á (71%)                        Both                                                                                                 fragrance collection
                                                      Both                                  I enjoy receiving the brand I use as a gift          52%     • Most of the time I buy fragrances on impulse
  To please spouse/partner - 76%á (56%)
                                                                                                                                                           when out shopping for other things
                                                                           Where I buy doesn’t matter, as long as it’s a good brand             47%
  To express my individuality - 75%á (64%)                                                                                                               • I enjoy receiving fragrances as a gift
                                                                                         I like to experiment with different fragrances        32%Ô        regardless of the scent
  To be attractive to others - 73%á (57%)             Both                                                                                               • It's more realistic for me to have a designer
  Makes me feel sophisticated – 70%Ó (55%)                                           I have a signature scent -- it's part of who I am          47%        fragrance brand than designer clothing/
                                                                                                                                                           accessories
                                                                         Same fragrance in different forms to create a lasting scent           39%Ô      • I choose a fragrance based on the occasion
  I want fragrance to make me feel…(Ranked 1 or 2)                                                                                            25% Ô      • I want to know more about ingredients in
                                                                                                    I match my fragrance to my mood
                                                                                                                                                           fragrances
  Fresh – 39% (38%)       Happy – 27% (27%)    Elegant– 17% (18%)
  Confident – 29% (26%)   Sexy – 23% (22%)
                                                                                                             Perfume             Non-perfume
© GfK 2017   *Among category users    áâ Indicates sig. higher/lower than total at 95% confidence                                                                                              27
Size of segment                                Value of segment
                                            19%                                              13%

  Fragrance Shopping Statement Agreement (T3B)                                            Fragrance Shopping Behaviors                       Gifting Fragrance

             Good value for the money is important to me                                 Purchase Channel (P6M)                            Received Fragrance as a gift (% Yes)
                                                                            79%
 The places I shop for fragrance carry the brands I want                    76%          In person (at a store) – 72% (68%)
                                                                                         Online – 21% (23%)
                                                                                                                                              80%        52%          54%
             I like to get fragrance samples when in-store                68%
                                                                                                                                              60%                                  35%
                                                                                         More likely to shop at…                              40%
                                                                                                                                                                                                 10%
                I like to go to stores to try new fragrances            50%                                                                   20%
  The store that I buy fragrance from is important to me              42%                                                                      0%
                                                                                         Beauty specialty
   The fragrance shopping experience is overwhelming                  41%                Brand specialty
                                   I buy fragrances online          22%                  High end dept.                                    Fragrance Gifted Attitudes (T3B)

     I use the internet to narrow down, then buy in store         12%Ô                   Mainstream dept.                                  • This segment is more likely to enjoy receiving fragrance
                                                                                         Discount dept.                                      as a gift, as long it is the brand it uses (71%á vs. 59%),
                                                                                                                                             and if it’s from a close family member or friend (49% á
                                                                                         Advice/Information on Purchases                     vs. 38%)
  Top Fragrance Purchase Triggers
                                                                                         Friend/family member – 36% (36%)                  • This segment is less likely to enjoy receiving fragrance as
                                                               Also higher on…                                                               a gift, regardless of the scent (35%Ô vs. 45%)
   Running out/running low                                                               Store sales person – 26% (24%)
                                              65% á
                                                           • None                        Brands that I like/follow – 25% (23%)
               To treat myself             45%                                           My favorite magazines – 13% (18%)                   Buying Styles (MRI) - where over-index
                                                                                         Significant other/partner – 17% (14%)
     Need gift for someone            22%                                                                                                  Habitualized Havers            Conscientious
                                                                                         Most Influential to Purchase (P6M)                (comfort in tradition; buy what Consumers (shop for bargains
    Shop because I enjoy it          18%                                                                                                   always bought; once find a      but cost is not main factor; buy
                                                                                         Sample fragrance – 49% (48%)                      brand they are comfortable      American and environmentally safe
        Spur of the moment                                                               Free trial bottle – 42% (39%)                     with they stop looking)         products; conscious of quality and
                                     17%
                                                                                         Free gift w/ purch offer – 27% (26%)                                              are brand loyal)
                                                                                         In-store displays – 22% (24%)
                                                                                                                                           Index = 128 (24%)
 Have gift card/credit to use         24%                                                                                                                                 Index = 124 (25%)
                                                                                         Ad w/ scent strip – 22% (23%)
© GfK 2017      *Among category users        áâ Indicates sig. higher/lower than total at 95% confidence                         Perfume   Body lotion        Body Mist       Essential oil            28
Size of segment                          Value of segment
                                      19%                                          13%

    Top Barriers to Using Perfume More Often                                           Need Gap
                                                                                   •           They are significantly lower vs. total on the following importance metrics: It is portable/easy to take
   More likely to say:                                                                         on-the-go and It is a gender-neutral fragrance. They’re on par with total on the satisfaction metrics.
   • Variety is overwhelming (14%á vs. 8%)
                                                                                                                                             Biggest areas of opportunity
                                                                                                                                 80%

                                                                                         Importance (Extremely/Very Important)
                                                                                                                                             for segment (high importance /
                                                                                                                                             lower satisfaction):                    Lasts all day
                                                                                                                                             None for this segment
     Top Triggers for Using Perfume More Often
                                                                                                                                 60%
   • Help from online sources to figure out what I would like (22%Ô vs. 29%)                                                                                                                             High quality
                                                                                                                                                        Familiar with             It is good for
   • If I knew how to properly apply it (19%Ô vs. 27%)                                                                                               different types of           sensitive skin
                                                                                                                                                      scents used in
                                                                                                                                 40%                     fragrances                           Acceptable at work
                                                                                                                                                   Lighter version of my
                                                                                                                                                        favorite scent
                                                                                                                                            Designed                               Natural fragrance I can buy it
                                                                                                                                                                      Portable
     Interest in Online Tools (T2B)                                                                                                       specifically to                                             anywhere
                                                                                                                                       combine more than                                           Comes in an
                                                                                                                                 20%                                 It comes in small           appealing bottle
             55%                                                                                                                          one fragrance
                               42%                 38%                                                                                                                     sizes
                                                                                                                                     Heavier version of                                  Many forms of the
                                                                        8%Ô                                                          my favorite scent         Gender-neutral             same fragrance
                                                                                                                                                                  fragrance

       Suggestions     Personality quiz     User reviews           Live chat                                                      0%
     based on what I   recommending                            feature to act as                                                       0%                 20%                  40%                   60%                80%
      already know I     fragrances                               an advisor
           like                                                                                                                         Satisfaction (Very satisfied/Satisfied with how well current
                                                                                                                                                   fragrance options meet these needs)
© GfK 2017   *Among category users    áâ Indicates sig. higher/lower than total at 95% confidence                                                                                                                             29
Size of segment                             Value of segment
                                             19%                                           13%

    General Style Attitudes (T3B)                                                           Fashion & Style Attitudes Segment (MRI) –                    Mobile Attitudes Segment (MRI) –
                                                                                            where over-index                                             where over index
     I have different looks depending on my mood/occasion                      66%
                         I dress with a sense of individual style                  70%
                                                                                                                                                             Does not over-index on any Mobile
    I enjoy shopping for fun, whether I buy something or not                                  Does not over-index on any Fashion & Style Attitude
                                                                               65%                                                                                       Attitude
          More willing to purchase things if can customize it                 55%
                                   I make an effort to feel sexy              58%
               Buy more fashion items online than a year ago                 42%
        More likely to buy a product designed by a celebrity          6% Ô

                                                                                                                                         General Attitudes Segment (MRI) – where
    Differentiating Personal Values (T3B)                           Digital / Advertising Attitudes (MRI)
                                                                                                                                         over index
                                                                Very/somewhat important to use social networking for…
    More likely to value Ó        Less likely to value Ô
                                                                To find out about products and services –34% (102)                              Does not over-index on any General Attitude
      Authenticity (94%)                                        To rate or review a product or service –22% (96)
                                                                To show support for my favorite companies or brands – 22% (89)           Other Interests (MRI)
      Experiences (86%)
                                                                To receive exclusive offers, coupons or other discounts –35% (103)      Played video games in last 30 days – 26% (89)
       Simplicity (81%)                                                                                                                 Regular exercise (2+ times/wk) at a club – 18% (112)
                                                                To gain access to VIP or Members-Only events – 15% (85)
       Romance (75%)                                            Used cell/mobile apps in past 30 days…                                  Wrote in an online blog (past 30 days) – 3% (115)
                                                                Shopping/retail – 21% (105)                                             Car type most associate with: Green & Trendy – 20% (81)
      Looking good (63%)
                                                                Describes attitude completely (8-10 on 10-pt scale)…                    Regular exercise (2+ times/wk) at home – 35% (110)
             Sex (61%)                                                                                                                  Regular exercise (2+ times/wk) at other facility – 10% (121)
                                                                Advertising helps keep me up-to-date about products & services that I
                                                                need or would like to have – 14% (90)                                   Camping - any overnight trips – 15% (120)
© GfK 2017      *Among category users        áâ Indicates sig. higher/lower than total at 95% confidence                                                                                         30
Size of segment     Value of segment
                                         19%                    13%

         Other Interests (MRI) – where over-index
     Tech-Thusiasts - 4% (127)
     Tech-Splorers – 15% (123)
     Sports websites visited
     •     foxsports.com - 4% (142)
     •     MLB.com - 3% (141)
     •     SportingNews.com - 1% (161)

© GfK 2017                                                             31
I am not particularly involved in, invested in, or knowledgeable about the                    Size of segment
                      fragrance category; fragrance is less important to me than other beauty                                       17%
                      categories and is less likely to be a part of my routine. My perfume usage
                      has declined over the past few years and it likely will continue to decline in                Value of segment
                      the future; however, I’m a light perfume user today and am pretty average                                       14%
                      for other types of fragrances. Generally, I am less likely to be influenced
                      by current trends or social pressure.

     Demographics                          Fragrance Usage*                                                 Avg. # Bottles Own*                             Brand Usage (unaided)
                                                       Total                       Daily     Weekly
 •    Older on average (42.97á
      vs. 40.37)                                                                  23%â         61%                                          3.5 á                                                 37%
                                                                       92%                                    2.9      2.9
                                                                                                                                  2.4 â                                            16%
                                                                                  20%â         56%
                                                                   76%
                                                                                                                                                                               10%
                                                                                    25%        52%
                                                                  73%                                                                                                          10%
        Age                                                                        8%â        21%â
       18-34          28% Ô                               38% â                                                                                                               5%

     Age Started Using*             Beauty Routine and Fragrance*                Occasions Use by Fragrance*                                     Change In Fragrance Usage
                                                                                Segment higher than average on…                                 Segment tips toward:
     No significant differences      No significant differences vs. total
              vs. total                                                                                                                         Total                Past              Future
                                                                                                                                                Fragrance            Same               Same
                                                                                                                                                                  Decreased             Same

                                                                                           No significant differences vs. total                                   Increased             Same

                                                                                                                                                                  Decreased            Decrease

                                                                                                                                                                     Same               Same

© GfK 2017      *Among category users    áâ Indicates sig. higher/lower than total at 95% confidence                    Perfume           Body lotion    Body Mist     Essential oil              32
Size of segment                      Value of segment
                                           17%                                     14%

   Fragrance Importance                                      Most Important Fragrance Needs (T2B)                                         Appropriate to Wear (T2B)

     Ranked 1/2 in importance           Leading Edge                                     It lasts all day
     compared to other beauty            Consumers:                                        63% (64%)                                       At a party/special event – 90% (88%)
      categories: 8%â (16%)                                                      It is high quality fragrance                              Dining with friends/family – 80% (81%)
                                                                                           46% (50%)                                       At work – 64% (66%)
    T3B agree that “I really don't                                          It is acceptable to wear at work
                                                 8%                                        38% (44%)                                       Loved ones at home – 63% (64%)
        pay much attention to
                                                                                It is good for sensitive skin                              At school – 61% (58%)
     fragrances, it is just not that
   important to me”: 22%â (33%)                                                            36% (41%)

  Top Reasons Wear Fragrance (T3B)               Skews toward…              Top Fragrance Attitudes (T3B)

  Makes me feel fresh - 72%â (80%)                         Both
                                                                                Few favorites that are always a part of my collection                  78%á
  To lift my mood - 64% (71%)                              Both                             I enjoy receiving the brand I use as a gift           58%
  To express my individuality - 54%â (64%)                 Both             Where I buy doesn’t matter, as long as it’s a good brand             49%
  Good memories assoc. with the scent - 49%â (60%) Both                                  I like to experiment with different fragrances           58%
  Makes me feel sophisticated - 40%â (55%)                                            I have a signature scent -- it's part of who I am          46%
                                                                          Same fragrance in different forms to create a lasting scent           44%
  I want fragrance to make me feel…(Ranked 1 or 2)                                                   I match my fragrance to my mood             49%
                                                                                I want to know more about ingredients in fragrances              52%á
 Fresh – 39% (38%)       Happy – 28% (27%)       Sexy – 14%â (22%)
 Confident – 31% (26%)   Elegant – 16% (18%)     Relaxed – 13% á (7%)

                                                                                                             Perfume             Non-perfume
© GfK 2017    *Among category users    áâ Indicates sig. higher/lower than total at 95% confidence                                                                                  33
Size of segment                           Value of segment
                                                   17%                                     14%

  Fragrance Shopping Statement Agreement (T3B)                                          Fragrance Shopping Behaviors                        Gifting Fragrance

             Good value for the money is important to me                               Purchase Channel (P6M)                              Received Fragrance as a gift (% Yes)
                                                                            79%
 The places I shop for fragrance carry the brands I want                   69%         In person (at a store) – 64% (68%)                    80%
                                                                                       Online – 31%á (23%)                                              44%â          50%
                                                                                                                                             60%                                  38%
             I like to get fragrance samples when in-store                  75%á
                                                                                       Less likely to shop at…                               40%
                                                                                                                                                                                            9%
                I like to go to stores to try new fragrances            51%                                                                  20%
  The store that I buy fragrance from is important to me            23% â                                                                      0%
                                                                                       Beauty specialty
   The fragrance shopping experience is overwhelming                 33%               Brand specialty
                                   I buy fragrances online           32%               High end dept.                                      Fragrance Gifted Attitudes (T3B)

     I use the internet to narrow down, then buy in store           21%                Mainstream dept.                                   • This segment is less likely to return fragrances
                                                                                       Discount dept.                                       received as gifts (8% â vs. 14%).
                                                                                       Advice/Information on Purchases
  Top Fragrance Purchase Triggers
                                                                                       Friend/family member – 35% (36%)                     Buying Styles (MRI) - where over-index
                                                               Also lower on…
   Running out/running low                                                             Store sales person – 21% (24%)                       Penny-Pinchers
                                             57%
                                                         • When I have a special       Brands that I like/follow – 21% (23%)                (just solely on cost; brand
               To treat myself              47%            occasion coming up–         My favorite magazines – 20% (18%)                    loyalty less important than
                                                           13% â (19%)                 Significant other/partner – 9% (14%)                 coupon; little interest in
     Need gift for someone            24%                                                                                                   technology)
                                                                                       Most Influential to Purchase (P6M)
                                                                                                                                            Index = 132 (15%)
    Shop because I enjoy it          15%Ô
                                                                                       Sample fragrance – 56% (48%)
        Spur of the moment                                                             Free trial bottle – 41% (39%)
                                      22%
                                                                                       Free gift w/ purch offer – 27% (26%)
 Have gift card/credit to use         20%                                              In-store displays – 25% (24%)
                                                                                       Ad w/ scent strip – 27% (23%)
                                                                                                                               Perfume   Body lotion        Body Mist       Essential oil
© GfK 2017      *Among category users        áâ Indicates sig. higher/lower than total at 95% confidence                                                                                         34
Size of segment                      Value of segment
                                          17%                                      14%

    Top Barriers to Using Perfume More Often                                         Need Gap
   At parity with total in terms of top barriers:                                  They are significantly lower vs. total on these importance metrics: I am familiar with many different
                                                                                   types of scents used in fragrances, It comes in an appealing bottle and It is a lighter version of my
   • Forget to put it on (26% vs. 28%),
                                                                                   favorite scent. They are comparable to total on satisfaction.
   • People around me are sensitive to fragrances (22% vs. 20%)
   • Other scented products are a good substitute (21% vs. 18%)                                                                  80%

                                                                                         Importance (Extremely/Very Important)
   • The fragrances I like are too expensive (28% vs. 32%)
                                                                                                                                                                                                                   Biggest areas of opportunity for
                                                                                                                                                                                                                   segment (high importance /
     Top Triggers for Using Perfume More Often                                                                                                                                               Lasts all day
                                                                                                                                                                                                                   lower satisfaction):
                                                                                                                                 60%                                                                               Fragrance that lasts all day
   • Help from online sources to figure out what I would like (21%â vs. 29%)
   • If I knew the story behind the perfume (17%â vs. 27%)
                                                                                                                                                                                                                High quality

                                                                                                                                                                     Acceptable at work
                                                                                                                                 40%                                                         It comes in small sizes
                                                                                                                                                    It is good for sensitive skin
                                                                                                                                                                                                     Portable
                                                                                                                                                                I can buy it anywhere                               Familiar with different types
                                                                                                                                                       Natural fragrance                                                of scents used in
     Interest in Online Tools (T2B)                                                                                                                 Lighter version of my
                                                                                                                                                                                                                             fragrances

                                                                                                                                 20%                    favorite scent                                             Many forms of the same
                                                                                                                                            Heavier version of my                                                        fragrance
             58%                                                                                                                               favorite scent
                               41%                 41%                                                                                                                                            Designed specifically to
                                                                                                                                        Gender-neutral fragrance     Comes in an appealing        combine more than one
                                                                        8% â                                                                                                bottle                      fragrance
                                                                                                                                 0%
       Suggestions     Personality quiz     User reviews           Live chat                                                           0%                        20%                         40%                          60%                       80%
     based on what I   recommending                            feature to act as
      already know I     fragrances                               an advisor                                                            Satisfaction (Very satisfied/Satisfied with how well current
           like
                                                                                                                                                   fragrance options meet these needs)

© GfK 2017   *Among category users    áâ Indicates sig. higher/lower than total at 95% confidence                                                                                                                                                         35
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