Why Are We Here? Sweet Georgia Sugar’s Research Problem

“Sweet Georgia Sugar is interested in increasing brand awareness and consumer demand through an increased understanding of the customers and their experience journey related to skincare.”

What does the consumer experience journey look like for natural skincare users?

Our Initial Research Questions1. Why do natural skincare consumers switch from “traditional” skincare?

2. What expectations do consumers have for brands and companies within the natural skincare category?

3. What commonly held associations or beliefs do consumers have when considering natural products?

4. What are the important product features to natural skincare consumers?

5. Is the typical consumer aware that synthetic ingredients can still be found in natural skincare products?

What else should SGS know about the personal and skin care industry?

X

Source: Mintel, NPD Group, USDA National Organic Program, CB Insights

Slowing Sales No Regulation Transparency Customization

What are the notable category drivers to SGS?

Source: Mintel, USDA National Organic Program, Beauty Trends Report, Mergent/First Research, WARC

Crowded Marketplace Digital/eCommerce Presence

Direct-to-Consumer Impact

What consumer insights should SGS consider?

Source: NPD Group, Mintel

XSelective Shopping Simple, Easy-to-Use

ProductsHealth Appeal Greenwashing

Backlash

Actionable Insight: The Mindful Millennial Woman

Our interview selection process:

x8

Convenience & Judgment Sampling Methods

Two Interviews per Group Member

In-person, FaceTime & Calls to Conduct Interviews

All interviewees were selected based on their availability, ease of access and ability to offer valuable information relevant to our investigation.

Insights that Personalized our Academic Research

Lifestyle Change Active Lifestyle Reading Labels Sources of Information

Source: Interview responses

1. Why do natural skincare consumers switch from “traditional” skincare?

● Preventative Measures / Proactive● Specific Catalyst (e.g. moving, kids)● Education/Research● Effectiveness● Recommendations

1. 12. What expectations do

consumers have for brands and companies within the natural skincare category?

● Greater transparency from brands on ingredients

● Increased safety concerns of ingredients used in mainstream brands

● Health appeal of natural products is supporting switch

What We’ve Learned So Far

1. Why do natural skincare consumers switch from “traditional” skincare?

2. What expectations do consumers have for brands and companies within the natural skincare category?

Our Finalized Research Questions

1. What commonly held associations or beliefs do consumers have when considering natural products?

2. What are the important product features to natural skincare consumers?

3. Is the typical consumer aware that synthetic ingredients can still be found in natural skincare products?

Respondents were nearly 50/50 between exclusive traditional skincare users and natural skincare users

Our survey process:

Qualtrics Software Email, Social Media Distribution

Valid Respondents

x107

Sources: Survey results

RQ1: What commonly held associations or beliefs do consumers have when considering natural products?

The Natural Skincare Category Has Yet to Make a Significant Impression on Consumers

I feel good knowing I’m using items that are safer for my body… and safer for the environment, too. (Jasmine, 35)

I felt better physically and mentally because my skin cleared up and my face wasn’t hurting. And, I just felt like I’d finally found relief in something that had worked for me. (Belle, 38)

I definitely [feel] like my skin [feels] cleaner… I’m not worried about all the chemicals and crap that I was putting on it [before switching to natural skincare] (Elsa, 25)

I feel good that I'm putting something natural on my skin instead of something laden with chemicals (Survey Respondent)

Our Respondents “Feel Good About Feeling Good”

“l

”Sources: Interview responses, Survey results

RQ1: What commonly held associations or beliefs do consumers have when considering natural products?

Short Term:● Brand Awareness: Social Media

○ Flexible budgets, controlled content○ Instagram, influencers, blogs,

product pages are research hubs○ Shoppable social media content

● “Feel Good About Feeling Good”○ Use SGS tagline as brand platform

to build consumer connections

Long Term:● Brand Trial: Sampling

○ Mimic retail experience via sample boxes (e.g. FabFitFun, BirchBox)

● Website Overhaul○ Update SGS website to adhere to

current/evolving SEO standards○ Make SGS website a hub of content

RQ1 Actionable Insights:

Sources: CB Insights Report, Interview responses, Survey results, SGS data

RQ1: What commonly held associations or beliefs do consumers have when considering natural products?

Sources: Interview responses, Survey results

RQ2: What are the important product features to natural skincare consumers?

Certifications Clean & Consistent Recognizable Ingredients

Consumers Use Packaging Cues to Reaffirm Product Expectations

34%

14%

27%

43% 41%

Short Term:● Certifications

○ Use certification labels and seals in marketing efforts

○ Focus on seals that don’t require financial investment to obtain

● Recognizable Ingredients○ Highlight “no more than 8x

ingredients” claim in marketing efforts

Long Term:● Packaging

○ Strongly consider overhauling brand design and packaging

○ Add certification seals/logos○ Update product names (e.g. Body

Butter - All-Natural Body Butter)

● Brand Name*○ Strongly consider renaming brand ○ Assumption SGS was sweetener or

honey, or related to tea or peaches

RQ2 Actionable Insights:

Sources: NPD Group, Interview responses, Survey results

RQ2: What are the important product features to natural skincare consumers?

Ingredients Weigh on the Minds of Consumers, Even Without Official Regulations

Sources: NPD Group, CB Insights, Survey results

RQ3: Is the typical consumer aware that synthetic ingredients can still be found in natural skincare products?

70% expect natural skincare products to be

free of synthetic ingredients

66% would stop using aproduct/brand if they

found synthetic ingredients

The Personal Care Products Safety Act will give FDA more regulatory

authority and demand greater transparency

X

RQ3 Actionable Insights:Long Term: ● Transparency

○ Partner with brands such as Think Dirty to bolster credibility

● Packaging○ Highlight the lack of harmful

ingredients (no parabens, synthetic fragrances or dyes) on-pack

Short Term:● Education

○ Use brand website to inform consumers

○ Create content that shows SGS differentiation

● Certifications○ Be accurate and consistent in using

product claims and certification seals/logos

Sources: NPD Group, CB Insights, Survey results

RQ3: Is the typical consumer aware that synthetic ingredients can still be found in natural skincare products?

In the Words of SGS Customers... Two SGS consumers didn’t identify as a natural skincare user

Reinforce education and differentiation of SGS in natural skincare category

Source: Survey results, Value Perception results

Some prefer to use body butter in the evening due to it taking time to absorb

They raved about the products they used and commented on how they love giving SGS products as a gift

Some felt saran-wrapped specialty products didn’t reflect the quality when compared to flagship product packaging

Potentially reposition body butter as a “bedtime luxury”

Prioritize gift baskets and limited edition scents during key gift-giving seasonal windows (e.g. Christmas, Mother’s Day)

Package specialty items with consistent materials to reinforce brand quality and commitment to limited-edition products

● The recommendations and insights we’ve provided are short and long term solutions to carve a space in this market

● SGS has strong product attributes that differentiates themselves in such a robust category

● Data confirms that when consumers use natural skincare, they were more confident and “felt good” about using clean products and that’s an easy connection for SGS to make with them

Conclusions

Questions?

Thank you!

Appendix

Consumers expect to pay more for natural skincare products - worth the value of the positive effects

Consumers are loyal to brands and if they like the brand, they are willing to test other products within brand

Effective, easy-to-use (easy to incorporate into current routine) and simple products are preferred by consumers than complicated options

Additional Insights for Consideration

Strongly consider raising prices to align with competitive set and help increase profit margins

Include other product samples within current consumer orders to drive trial of other SGS products

SGS products are already simple and easy-to-use and integrate into a skincare routine, keep this in mind when considering future product expansion

Secondary Research Sources

Interview Overview

● In-depth interviews conducted October 2018

● Sampling methodology:○ Convenience Sampling ○ Judgment Sampling

● N = 8, two interviews conducted by each group member○ No group member interviewed their own informant(s)

● Audio was recorded & transcribed for data coding○ 127 total audio minutes○ 74.3 audio minutes transcribed = 34 pages transcribed

Survey Questions Overview

● Introductory Questions ○ Consumers’ Skin Care Habits: whether or not they use natural skin care products

(and if so, for how long), whether or not they prefer natural/traditional skin care, current skin care brands and products which they use

● Commonly Held Associations & Beliefs ○ Perceptions of natural skin care and its price/ value/ effectiveness/ associations/

trustworthiness○ Results of using natural skin care products ○ Brand loyalty to natural skin care products & product lines

Survey Questions Overview

● Important Product Features○ Importance of packaging features, influence of place of manufacturing ○ Label-reading habits regarding ingredients and certifications

● Awareness of industry regulation/ lack thereof○ Beliefs about whether or not “natural” skin care products can contain synthetics ○ Expectations of and standards for products which claim to be natural

● Wrap-Up Questions: ○ Age, sex, occupation, area of residence