In order to define the current
position of Neutrogena on the Russian market we conducted the analysis of Neutrogena’s
competitors. The main competitors include: L’Oreal, Garnier, Green Mama, Vichy,
Clinique, La Roche-Posay, Clarins, Lierac, Yves Rocher, Natura
Siberica, Clearasil, Himalaya Herbals, Body Shop, SkinFood, Clean and Clear, Nivea,
Baikal Herbals, Chistaya Linia and Sto reseptov krasoti. The competitive
landscape of Russian cosmetics markets is presented below. Two dimensions –
price and distribution - were taken into account. Our aim was to reveal the
price of competitive products and variety of their distribution channels. It
was noticed that only Clearasil has similar distribution characteristics with
Neutrogena.
The majority of competitors’ series
possess only ordinary gel and foaming skin cleansers, scrubs and masks. There
are two exceptions – L’Oreal Pure Zone Pure Chrono Clear and Garnier
Pure Active Exfo-Brusher Wash. They are supposed to provide deeper skin cleaning; therefore, we could
consider them to be main competitors of Neutrogena.
Both products aimed to deeply clean
the skin, to remove dead skin and fade marks. They
are different in terms of chemical composition; however, salicylic acid remains
to be the main element in both products. Furthermore, they have different
number of fibres. L’Oreal Pure Zone Chrono Clear has 500 fibres, whereas
Garnier
Pure Active Exfo-Brusher Wash - only 170 ones.
We have examined a variety of reviews on different Russian and foreign
blogs and forums and revealed that consumers mention similar advantages and
disadvantages of both products, which are presented below.
Advantages:
- Soft brush
- Neutral or nice smell
- Easy to use
- Massage effect
- Removes and prevent blackheads
- Removes dead skin cells
- Reduces surface sebum levels
- No significant acne reduce
- Tight and dry skin after use
- Necessity to carefully clean the brush after use due to hygienic concerns (bacteria spread)
Doubts:
- No visible effect
- Poor quality-price ratio
- Fake-products ( Russian women are afraid of fake L’Oreal and Garnier products because of the previous experience)
Than we asked ourselves whether Neutrogena Wave
possesses all the advantages that main competitors have. The answer was YES.
Does Neutrogena WAVE have any of the listed
disadvantages? The answer was NO.
Would consumers experience the same doubts
while taking the purchase decision? NO.
Therefore, we concluded that Neutrogena WAVE
would bring all those benefits to consumers which they don’t meet now.
Nice view, but I wanted to pay your attention to the fact that there is perceived positioning of the brand (consumers' view on brand) and desired positioning (the one that company tries to establish). So, when you mention different fibres and all of that, you speak about some characteristics of products about which consumers might even not know, as these facts are not mentioned in advertising campaign, etc. When you consider competitors, I would suggest to pay extra attention to perceived competitors.
ОтветитьУдалитьElena, thank you for your comment. However, I don't think that I understand your point completely. Our main goal was to define the main competitors, to compare them with Neutrogena and to examine the products, which could pose a danger for the WAVE. The majority of the mentioned advantages and disadvantages of L'Oreal and Garnier products were derived from consumers' reviews (besides fibres (you're right) - it's a technical characteristic), which indicates the overall level of satisfaction.
УдалитьIs there any flaw in the logic? Could you please clarify?
Hi Yulia, I really liked your post about competitors, which is short and informative at the same time. I just wanted to ask one question about this price-distribution competitive landscape diagram: what is meant under the distribution-axis? how did you assess it?
ОтветитьУдалитьHi Irina, thank you for your question. We compared the number of distribution channels of our competitive brands. For instance, if certain beauty products are sold only in specialized brand stores (like Yves Rocher) they get 1 point, if it is possible to find them in beauty stores or supermarkets - 2 points, beause it is easier for consumer to buy them, if products, additionally, are sold in pharmacies they get 3 points. Due to specifics of the WAVE, we decided that such division would be appropriate for us.
УдалитьHi,
ОтветитьУдалитьI agree with Irina that your graph is a good idea to illustrate the competitors on the Russian market.
By the way, do you consider Neutrogena WAVE as a niche product on the market?
Tania
Hi Tania,
УдалитьThanks for your comment!
As for your question, we don't consider Neutrogena WAVE niche product. It is a mass product which is aimed to satisfy needs of different types of consumers and which could be easily found on the shelves of beauty stores and pharmacies.
Thanks for your feedback! Yes, in the following posts you mention that Wave belongs to the mass brands.
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