Last week, we focussed on how to reduce stock outs of food & beverage brands in stores. This week we are focussing on personal care & home care brands.
You may think that personal care & home care brands are immune to these fluctuations as consumer buying behaviour is a result of frequency of use and this remains more or less consistent. However as we saw in 2020, consistency & predictability are of the past. Climate change and the pandemic have forced us to behave in ways we have never imagined. These changes in behaviours and their unpredictability have caused brands to go out of stock in stores as companies and sales people rely on out dated information to inform them of consumer demand.
So how do you go about understanding optimal orders for personal care & hygiene brands? For a start, lets look at some of the key drivers of sales for the different categories:
Skin care brands
If you are a salesperson working for a company selling skin care brands, frequency of use is key to understanding demand. Frequency of use is driven by habit, nature of work, if they are office based, home based or site based etc. Now look at how covid/lockdowns have impacted this. How are people interacting with these brands/products at home and how are they expected to interact with offices/restaurants opening up? How have closures of spas impacted sales of skin care products and brands?
Hair care and colour
This shelf is deceptive. While the shelves look relatively full, several colours have gone out of stock. And when it comes to hair colour, consumers are usually reluctant to switch brands, hair types or colour!
Here is one time when historical sales is a good starting point. If you can get hold of store level depletions data across all colours and brands in store, you can get an understanding of the rough split of past demand for various colours. Now look at the drivers – how your target consumer uses your brand and the associated occasions – at home, work, social etc, and then apply how these occasions have changed during current times and its impact on sales.
Personal hygiene brands have been impacted by covid & by lockdowns. We separate the two as both these elements, while linked, drive different behaviours in consumers. While the pandemic itself has driven an increased consciousness of personal hygiene and keeping immediate surroundings clean/disinfected, lockdowns have led to a more relaxed stance toward personal hygiene at home.
While previously, the average consumer would have taken a shower at work after a run, the very same consumer now doesn’t think twice about changing into work clothes to attend a meeting immediately after the run and shower only at the end of his/her work day. Think of how else covid and lockdowns have impacted consumer behaviour directly associated with your brand.
Vitamins and supplements
Here’s another category that has been directly impacted by the pandemic. Consumers are more concerned about their immunity now and this has in turn benefitted the vitamins and supplements category. To understand the increase in demand for specific vitamins/supplements within this space, consider what the consumer uses the vitamin/supplement for, consumption occasion, consumer age etc
Here’s another category like hair colour where consumers are unlikely to switch brands and they definitely will not switch sizes! But you can get an understanding of demand by looking at number of births for a start and then at whether day care/play-schools are open or closed.
Now that you know the key drivers and you have your consumer persona from the marketing team, put them together to get an understanding of consumer demand and depletions in store. And before you ask me, these are real photographs taken just last weekend.
If you’d like to discuss any of the drivers of categories in more detail, feel free to email me on firstname.lastname@example.org