SKINCARE MARKET ANALYSIS
CUSTOMER RECORDS: ~556,000 | DATES: 1/2020 TO 10/2023
DATA SOURCES: CVS, AMAZON, TARGET, SEPHORA, ULTA, WALMART, WALGREENS
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Demographic Analysis
CVS GenZ vs Non-GenZ
ANALYSIS SUMMARY
While CVS products are appreciated for their efficacy and variety by both GenZ and Non-GenZ shoppers, there are distinct preferences and concerns between the two groups. GenZ values the skincare results and versatility of the products but is wary of certain product effects. Non-GenZ shoppers emphasize the lightweight and specialized nature of the products but are concerned about their efficacy and some of the product changes.
CVS has a solid foundation in the skincare market, but understanding and addressing the unique preferences and concerns of both GenZ and Non-GenZ shoppers through tailored marketing strategies can further enhance its market position and brand loyalty.
Strengths for CVS according to GenZ shoppers:
CVS products are frequently associated with positive skin results, including making the skin glow and look better.
Products are perceived as valuable and "worth the buy."
Products that support oil routines and overnight repairs are popular.
Sunscreen and products that can be easily added to existing skincare routines, such as activating serums and smoothing products, are also seen as strengths.
Strengths for CVS according to Non-GenZ shoppers:
Non-GenZ shoppers appreciate the facial wraps and refreshing products CVS offers.
The non-greasy formula, repair creams, and lightweight nature of products are seen as beneficial.
There's also positive sentiment towards products specifically designed for acne.
Weaknesses for CVS according to GenZ shoppers:
GenZ shoppers feel that some products are a waste of money or too expensive.
Products causing breakouts ("Broke me out") and being too greasy are concerns.
Allergic reactions and moisturizers being too heavy are also issues for this group.
Weaknesses for CVS according to Non-GenZ shoppers:
Non-GenZ shoppers find some products to be indistinct with "no noticeable results."
Product damage (like broken items) and a strong scent are drawbacks.
They also note the introduction of new formulas and a longer time required to see results as weaknesses.
Influencer recommendations not meeting expectations and the absence of significant results from some products were also concerns.
MARKETING IMPLICATIONS
Product Efficacy & Reputation: CVS has built a positive reputation around the efficacy of its products for both GenZ and Non-GenZ shoppers. This can be emphasized in marketing campaigns to build and maintain trust.
Targeted Advertising: GenZ shoppers and Non-GenZ shoppers have different preferences. Marketing campaigns should be designed with tailored messages for each demographic:
For GenZ: Highlight products that enhance skin glow, support oil routines, and provide overnight repairs. Address concerns about breakouts and greasiness.
For Non-GenZ: Promote facial wraps, non-greasy formulas, and acne solutions. Address concerns regarding product efficacy and tangible results.
Product Development & Feedback: CVS should look into refining products that have received negative feedback, especially those causing breakouts or considered greasy. This is particularly important for the GenZ demographic.
Transparency & Education: Given the concerns from Non-GenZ shoppers about new formulas and the time taken to see results, CVS should consider transparent marketing about product ingredients, benefits, and expected results timelines. Educational content might help alleviate these concerns.
Engagement with Influencers: The mention of influencer recommendations among Non-GenZ shoppers' concerns suggests a potential mismatch between influencer marketing and actual product performance. CVS should ensure that influencers align with the brand's values and genuinely resonate with the products they promote.
Promotions & Sampling: The positive sentiment around receiving free products (especially from Non-GenZ) suggests that CVS might benefit from sample giveaways, loyalty programs, or promotional events.
Addressing Product Concerns: Addressing product concerns promptly, such as fixing broken items or refining strong scents, will not only improve product quality but also brand reputation.
CVS Millennial vs Non-Millennial
Analysis Summary
While Millennial shoppers appreciate lightweight, hydrating solutions, Non-Millennial shoppers focus more on the long-term benefits and holistic skin health. However, both groups share concerns about product changes and effectiveness.
Both Millennial and Non-Millennial shoppers have unique preferences and concerns but there is a shared emphasis on product quality, efficacy and value for money. Based on analysis of this segment of shoppers, CVS should tailor its marketing strategies to cater to these specific needs while also addressing common concerns to improve overall customer satisfaction
The above are things that Millennial shoppers discuss significantly more than by non-Millennial shoppers and CVS does them well
Millennial shoppers at CVS over-index on having a great experience with Repair Creams at CVS over non-Millennial shoppers
Glow Recipe and Lightweight makeup follow closely
Other strengths include Great hydration, Hydrating under-eye treatments, and Concealers
Best charcoal products, Products for aging, Eye Renewal Balm, and Cleansing face products also resonate well with this age group
The above are things that are mentioned significantly more by non-Millennial shoppers than by Millennial shoppers and CVS does them well
Non-Millennial shoppers at CVS have the best experiences with products that make the skin look good
Followed by Overnight Masks and Sunscreen
Moisturizers and products where Little Goes a Long Way are appreciated
Other notable products are those described as The holy grail, Hyaluronic Acid, and products that people might be Nervous to Try but ended up liking
The above are things that are mentioned significantly more by Millennial shoppers than by non-Millennial shoppers and CVS does not do them well
Issues with Broken items and Lack of notice on changes are major pain points for Millennial shoppers at CVS
New formula changes that weren't well-received and products that Take Time to see effects are concerns
Millennials also found issues with Exfoliating Wipes, Insignificant results, Samples, and products suitable as just Birthday Gifts
The least popular were Best Cotton Pads
The above are things that are mentioned significantly more by non-Millennial shoppers than by Millennial shoppers and CVS does not do them well
Non-Millennial shoppers at CVS on the other hand have more of a concern about products being a money waste and products that broke them out over Millennial shoppers
Moisturizer bottles, Products that "Didn't work", Too Greasy products, and Allergic Reactions also deter this demographic
Products that Didn't work for particular purposes, as well as Love the Warmth (which might refer to a specific product), are mentioned
Body creams are also less favored by Non-Millennial shoppers over Millennial shoppers
MARKETING IMPLICATIONS
CVS Millennial Shoppers
Product Efficacy: Millennials value the immediate effects and efficiency of skincare and makeup products. Marketing campaigns should highlight the quick and visible benefits of these products
Transparency: This group values being informed about product changes. CVS should ensure transparent communication about product updates or formula changes and perhaps even involve them in feedback loops before making significant changes
Trending and Innovative Products: Glow Recipe and lightweight makeup resonate with this demographic. CVS should focus on stocking up on trendy and innovative brands/products and using social media platforms popular among millennials to promote them
Addressing Concerns: Issues with broken items and product efficacy over time are major concerns. Addressing these in the marketing messages or offering guarantees can help build trust
CVS Non-Millennial Shoppers
Long-term Benefits: This demographic values the long-term health and appearance of their skin. Marketing campaigns should highlight the enduring benefits and holistic advantages of products
Value for Money: Concerns about wasting money indicate a need for clear value propositions. Offering bundle deals, loyalty programs, or showcasing the cost-effectiveness of products might resonate with this group
Safety and Trust: Issues related to allergic reactions and products that cause breakouts indicate a need for products with natural ingredients or those suitable for sensitive skin. Emphasizing the safety and dermatological testing of products could appeal to non-millennials
Clear Descriptions: Products that "didn't work" or were "too greasy" indicate a mismatch between expectation and reality. Clear, concise product descriptions, and possibly video demonstrations, could help bridge this gap
General Implications
Segmented Marketing: Given the varied preferences and concerns, CVS should consider segmenting their marketing campaigns to cater to the specific needs of millennial and non-millennial shoppers
Educative Content: Given concerns around product changes and effectiveness, offering educational content around skincare can help guide shoppers in their purchasing decisions and build trust in the CVS brand
Quality Assurance: Addressing product quality concerns, such as broken items or ineffective formulations, is crucial. CVS should work with suppliers to ensure consistent product quality and perhaps introduce stricter quality control checks
CVS GenX vs Non-GenX
ANALYSIS SUMMARY
While both GenX and younger shoppers appreciate various offerings from CVS, they have specific preferences and concerns. Addressing these concerns and capitalizing on strengths can help CVS cater more effectively to both demographics.
There are shared concerns between the demographics, but their preferences highlight the need for targeted marketing approaches. By emphasizing strengths and addressing weaknesses, CVS can enhance its market positioning and appeal to both GenX and younger consumers.
Strengths for CVS GenX:
GenX and older shoppers appreciate CVS for its facial wrap offerings.
They also value the refreshing properties, cleansers that work without irritants, and lip tint colors.
Positive feedback for the brand's non-greasy moisturizers, acne solutions, and lightweight formulas.
Receiving free samples or products and recommendations from friends also seem to resonate positively with this demographic.
Strengths for CVS Non-GenX (younger than GenX):
Younger shoppers appreciate products that enhance their skin glow and overall appearance.
They give positive feedback for overnight masks, sunscreens, and products from the brand "Laneige".
They also appreciate moisturizers where a little product goes a long way, and products they describe as "the holy grail".
Notably, some are nervous to try new products, hinting at the value they place on trusted recommendations.
Weaknesses for CVS GenX:
A recurring concern among GenX and older shoppers is not seeing noticeable differences or results after using CVS products.
Issues with broken items and concerns about new formulas stand out.
Other concerns include the lack of immediate differences after application and general dissatisfaction with face wash products.
Weaknesses for CVS Non-GenX:
Younger shoppers frequently mention that some CVS products are a waste of money.
Products causing breakouts or being too greasy are significant concerns.
They also pointed out issues with certain products, such as those that pill after application, body creams, and leaky bottles.
Some feel that the hype around certain products is not justified by the results they experience.
MARKETING IMPLICATIONS
CVS GenX
Leverage Strengths: Focus marketing campaigns around products that GenX appreciates, such as facial wraps and non-greasy moisturizers. Highlighting features like "refreshing" and "lightweight" in marketing materials can resonate well.
Promotions and Samples: Since receiving free products is seen positively, consider loyalty programs or promotions where GenX customers can earn samples or discounts.
Product Development and Feedback: Address concerns about newer formulas by either revisiting the formulations or communicating the benefits clearly. Offering a platform for feedback might alleviate concerns and foster trust.
Quality Assurance: Emphasize quality checks to reduce instances of broken items, ensuring positive unboxing experiences for consumers.
CVS Non-GenX
Highlight Top Products: Capitalize on products younger consumers love, like overnight masks and sunscreens. Collaborations or special editions with brands like "Laneige" can also be explored.
Address Concerns Head-on: Product concerns, especially those related to breakouts and greasiness, need to be addressed. This could involve reformulating products or ensuring clearer usage instructions to prevent misuse.
Influencer Collaborations: Since younger users are influenced by product hype, partnering with beauty influencers can help shape perceptions positively. However, ensure authenticity in partnerships to maintain trust.
Product Trials: Given that some younger consumers are nervous to try new products, offering smaller trial sizes or sample kits can encourage them to test without committing to full-sized purchases.
Overall Implications for Both Demographics:
Clear Communication: For both groups, clarity in product benefits and features is crucial. For instance, if a product is meant for a specific skin type or concern, this should be prominently communicated.
Engage and Listen: Create platforms or campaigns where consumers can share their feedback. This not only builds trust but can also provide valuable insights for product development.
Segmented Marketing Campaigns: Given the distinct preferences, it might be beneficial to have segmented marketing campaigns targeting each demographic with the products and messages that resonate most with them.