The Challenge:
Haircare stands as a crucial category for a manufacturer affiliated with a pharmacy retailer in the North American market.
Despite the majority of households frequenting this channel, less than half of them engage in purchases within the haircare category. Notably, the year-over-year decline in haircare shopping within the drug channel poses a significant challenge, particularly among Millennials and Gen Z shoppers.
In response, the manufacturer has collaborated with the retailer to investigate the existing barriers to purchasing in this category within the channel and implement strategies to reignite growth.
Our Approach:
Explorer executed both quantitative and qualitative research to comprehend the path to purchase for haircare products within the drug channel. The quantitative research, conducted initially, revealed numerous touchpoints in the consumer journey that necessitated additional context.
To address this, qualitative deep dives were undertaken, taking place both in-store and in-home.
These deep dives aimed to assess the specific products shoppers are using, their preferred purchase locations, and their overall perceptions of haircare within the drug channel.
The Impact:
The research findings underscored the decisiveness of consumers within this category while also revealing their susceptibility to factors such as availability, pricing, and promotions at the shelf.
Notably, younger shoppers, seeking detailed information on ingredients and sustainability, showed a growing interest. However, despite the manufacturer’s products being accessible through various channels, they often lose out to Mass outlets due to lower prices for identical items.
To address this, a recommendation was made to strategically differentiate the assortment, preventing shoppers from perceiving the drug channel as offering the same products as Mass but at a heightened price.
