JML Brand Review

Presentation of Research Findings

November 2007

2

Agenda

Objectives and Method Main Findings

– Quantitative Appraisal of JML Brand– Qualitative Perceptions of JML Brand– Product Review– Brand Stretch & New H&B Product Appraisal

Conclusions & Recommendations

3

Research Objectives

Overall to provide health check on JML brand and how it sits with more health and beauty products

The research aimed to understand:

General awareness of the JML brand amongst consumers and evolution since 2004

Consumer perceptions of JML brand generally and on key performance criteria: value for money, innovation, quality, solving problems and availability

Views of a number of key products and their communication Whether the JML brand can stretch to more health and beauty

products especially hair removal cream, eye patches and anti-snoring product

Whether JML branding is needed and necessary on the new JML products before large-scale roll-out - or whether it acts as a barrier to purchase

4

Method & Sample (Quant)

Fieldwork conducted 27th September - 3rd October 2007

2,009 face to face interviews

•UK nation-wide omnibus•Sample representative of adult population of UK

5

Method & Sample (Qual)

4 x discussion groups (6-8 respondents for 90 mins):

• 2 with JML product purchasers, 2 with non-JML product purchasers• half sample purchasing anti-wrinkle cream, hair removal cream or anti-snoring products• spread of ages 25-55, BC1C2D, predominantly female• all regular shoppers at Boots, Asda or Woolworths• half sample Sky customers• groups conducted in London and Manchester

10 x accompanied shops (1 respondent each for 45 mins):

• 5 with JML product purchasers, 5 with non-JML product purchasers• all sample purchasing anti-wrinkle cream or hair removal cream• spread of ages 40+, BC1C2D, all female• all regular shoppers at Boots, Asda or Woolworths• half sample Sky customers• accompanied shops conducted in Woolworths Harrow (St Ann’s Road)

Fieldwork conducted w/c 5th November

Quantitative Appraisal of Brand Awareness & Perceptions

7

Awareness of JML

Awareness of JML (name and logo) has increased significantly since 2004

Awareness of JML (%)

Base: all (2,009)

Higher levels of Awareness of Name %25-34 5135-44 52Wales 38

30

4145

41

5256

0

10

20

30

40

50

60

Aware ofName

Aware of Logo Total Aware

20042007

Lower levels of Awareness of Name %55-64 3165plus 22London 21

8

Purchase of JML

Similarly, significant increase in penetration of JML products

Higher Incidence %35-44 2445-54 23Wales 25Yorks/Humb 22

11

17

0

5

10

15

20

25

2004 2007

Lower Incidence %16-24 1365plus 9London 7

Ever Purchased a JML Product (%)

Base: all (2,009)

9Sources of Household Gadgets & Convenience Products

Marginally ahead of Tesco, B&Q remains most popular source of household gadgets and convenience products

Source of Purchase (%)

6

9

14

30

37

37

38

49

52

6

6

17

40

45

46

50

0 10 20 30 40 50 60

Makro

Robert Dyas

Debenhams

Boots

Wilkinsons

Woolworths

Asda

Tesco

B&Q

20042007

Base: all (2,009)

10

Advertising and Promotions

TV ad most likely influence on purchase, ahead of mail order catalogue and demonstrations by sales people in store

Likelihood of Purchase (%)

3224 22

15 11

8

33

34

05

1015202530354045

Ad on TV Mail OrderCat.

DemoSales

Person

Video inShops

TVShoppingChannel

Very likelyFairly likely

Base: all (2,009)

11

Purchase Motivators

Purchase Motivators (%)

38 36 3832 30

13

58

1114

0

10

20

30

40

50

60

Goodquality

Good VFM Solves aProblem

EasilyAvailable

InnovativeIdea

Very likelyFairly likely

Quality, value and problem solving are all potent motivators to purchase - innovation less of an obvious influence

Base: all (2,009)

12

Image of JML

Image of JML (% apply)

66 6962

5660

29

1924

2829

0

10

20

30

40

50

60

70

80

VFM Availability Innovation SolvingProblems

Quality

PurchasersNon Purchasers

Purchase motivator ranking2nd 4th 5th 3rd 1st

Significant differences between those who have, and those who have not, purchased JML products - quality an issue for non purchasers

Base: all aware of JML (1,125)

13

25

30

35

40

45

50

55

60

65

30 40 50 60 70 80

QualitySolves problems

VFM

Availability

Innovative

Image vs Purchase Motivation - Buyers

JML Stronger Image

Stronger

Purchase

Motivator

Strong image amongst buyers of JML products

% applies to JML

% influence purchase

Base: all purchasers of JML (345)

JML Buyers

14

25

30

35

40

45

50

55

10 20 30 40 50

QualitySolves problems

VFM

Availability

Innovative

Image vs Purchase Motivation - Non Buyers

JML Stronger Image

Stronger

Purchase

Motivator

Suggestion that JML communications could work stronger throughout, but particularly to create quality and problem solving associations amongst non purchasers

% applies to JML

% influence purchase

Base: all aware but non purchasers of JML (713)

Non Buyers (Aware of JML)

Qualitative Perceptions of JML Brand

16Brand Associations - Customers

Channel-related• Pound shops, market stalls• Woolworths & Boots• Cheap shops• TV/shopping channel• website• Betterware & Lakeland

Product-related• Blue step, multi spanner• Gadgets• Unusual• To care for the home• Things you didn’t realise you needed/didn’t think of buying• Add usefulness to existing products• Good products• Old fashioned packaging

Marketing-related• TV & in-store ads• Eye catching & inspiring in-store activity• Ads demonstrate problem-solving & practicality of products• Good, straightforward ads• Sexy voice

Brand-related• Innovative• Solutions to HH problems• Easy and simple• Cheap/vfm• Reliable• Inferior quality• Excellent, different, original• Effective and practical/user friendly• Own brand• American (few)

Positive associations reaffirm core brand values: innovative, solving problems, available and vfm

17Brand Personality - Customers

• Middle aged• Middle of the road• Person with ideas• Practical

Not a safe personality - from consumer friendly (Branson) to slightly dodgy but finds safety in its accessible, middle of the road feel

18Brand Associations - Non-Customers

Channel-related• Woolworths, Boots & Debenhams• Betterware• Website

Product-related• Kitchen gadgets• Ironing cover• Bikini trimmer, stick on bras• Household products• HelpfulMarketing-related• In-store TV ads

Brand-related• Innovations• Not necessities• A bit of everything• Not a specialist• User friendly• Reliable• Concessions• Yellow and blue• Cheap• Not well known• American• A bit of everything

Views of JML brand amongst non-customers have formed through superficial perceptions of products they have noticed in-store

“It feels quite American rather than geared towards the UK. I’m not surprised

they have channels onSky”

[Male, Non-Cust, Manc]

Product Review

20

Doktor Power

• TV ad communicates easy, cleans all surfaces, one wipe, and all in one (saves having lots of different products)• Feels like would not have to work too hard• Buyers enthusiastic• Fiver OK since replaces a number of other products

• Some (males) cynical about TV ad• On handling product, some issues:

• sponge does not look like it will last• odour• harsh looking product • feels like it will be harder work

• Packaging too cheap• Expensive if it fails - would like trial size at trial price

Mixed reactions here - a minority of customers only would buy (influenced by existing buyer); for others, issues of trust and cost

+ -

“It almost looks too good to be true. You can clean almost anything with it”.

[Male, Customer, Manc]

21

Jumbo Eraser Block

• Research effect: • some in groups had purchased and influenced others• mini eraser shown impacted on perceptions of value

• Packaging disappointing, not solid enough, not impressive• Needs a container to be re-usable• Question whether is re-usable• Sense that will have to scrub hard so may only use for stains (so for young families)• TV ad lacks credibility for some

Such a departure from usual cleaning products makes this a more challenging product to sell

22Gem Styler & Fashion Magnets

Products are appealing and original but target market let down by price and/or packaging

• Gem Styler thought to be good gift for young end of teenagers• Unique• No adhesive so good for washing• Substantial packaging• Want to be able to order more studs so lasts longer• Fashion Magnets more of a stocking filler• Fun for kids • Like versatility• Innovative

• Gem Styler feels too costly (unless can re-order studs for some)• Concerns over quality: will it work on all materials including leather• Fashion magnets: weak packaging undermines product• Too cheap looking for real gift• Feels like pound shop purchase• Thus way too expensive

+ -

23

Classic Pen Set

Product was totally rejected by sample on the basis of lack of need, cheap and tacky looking, old fashioned

• Total rejection• Emphasis on fountain pen underlines old fashioned gift• Expensive• For older people

24

Oven Glove

Product with some potential, however pricing or number of gloves included would need reviewing

• TV ad did quite a good job of making the product seem attractive• Stocking filler for Gran or purchase for self• But disappointing when looked at product

• Only one glove• Too large - one size doesn’t fit all• Feels rough and unpleasant

• Too expensive for only one glove

25

MagniCard

Seemingly very successful product with genuine practical benefit, cheap enough to purchase

• TV ad sells Magnicard card well• creates sense of relevance & immediate usefulness• practical applications

• For more mature respondents, complete winner with high levels of claimed take-up

• for younger, some would buy as gift• Awareness of cheaper version in £ shops

• although some very poor experiences of quality

• Packaging misleading due to thickness• Feels good vfm at £4.99

Potential for Brand Stretch

27Categories Associated with JML

In the Kitchen• core JML territory• wide scope from cleaning to gadgets to electrical

Cleaning• core JML territory• no issue understanding what would go in here• BUT overlap with Around the House and In the Kitchen

Around the House• felt to be too vague a category, unsure of content• combination of other JML categories (cleaning, DIY, kitchen etc.)

DIY & Motors• good fit with brand• paint, brushes, ladders etc.• scope for imaginative solutions & efficient car cleaning products

Core categories relate to home solutions, especially cleaning, utensils & DIY

28Categories Associated with JML

Beautiful You• not associated with brand & poor fit with product portfolio (non-customers espec)• many unsure of content, some thought would include body suit, strapless bra etc.• could include cotton wool• name felt to overly focus on self

Fitness & Well Being• mixed views• for many, focus on eqpt (like Argos), some begin to develop concept of ingestible products (e.g. vitamin/body-building supplements)

H&B not obvious categories for JML & labeling on website will need to be more explicit

“I’d be nervous about buyinganything that touches my skin fromJML. But I might buy a razor”.

[Female, Non-cust, Manc]

29

Other Potential Categories

Pet Supplies

Room for brand stretch but ‘medical’ initially making customers / potential customers nervous - may need sub brand

Sports

Electrics

Gadgetry

Gardening

Hobbies & Crafts Children

Medical

• Fear of failure has high risks• Bad publicity re Chinese toys recently

30Purchasing Anti Wrinkle Products

Branded products dominate this market– Currently purchased include Boots own brand, Simple, Clarins, L’Oreal, Oil

of Olay– Brand is significant for consumers as reassuring of absence of potential

allergies/negative reactions as well as enhancing potential for effectiveness

Boots, Asda and Tescos are the main purchase points for these items On pack information is important

– Research tests adds to reassurance – Indication that the skin will not become inflamed, natural ingredients

(aloe, almond oil, vitamin E) – Words which appeal to consumers include ‘lifting’, ‘toning’ and

‘strengthening’– Quality packaging communicates quality of product

Price sensitivity weaker for this type of product but still sample not going > £20+

Recommendations from friends and family is important– As is marketing & celebrity endorsement to create desire and trial (e.g.

hype around No.7 Protect & Perfect serum)

Brand plays a driving role in selection of anti wrinkle products and marketing helps drive choice in a very busy marketplace

31

Radiance

Perceived as quite unique product so trust issues and need to trial Those most positive (older) perceived as top-up to usual anti-

wrinkle products– Likely to use on special occasions, e.g. when going out– £9.99 at limit of acceptability for occasional use– Both advertising and packaging enhanced appeal, felt scientific and easy to use– JML branding helpful in bringing belief and credibility to product– For non JML customers, helped with more positive view of brand– For JML customers just enhanced reassurance

Those more negative (younger) were generally sceptical– Advertising oversells product (miracle cure)– Very short term results at best– Makes similar claims to current product without recommendation or known

brand– Good look packaging (professional & fresh) though some preferred jar-

based– At fixture though, many confused for contact lens product– Requested testers – £9.99 feels expensive if everyday product

Crucially Radiance appeals to core target market but also succeeds in improving brand perceptions on quality through packaging for all

“The product looks interesting but at first glance I thought it was

contact lens cleaner”.[Female, Cust, Harrow]

32Purchasing Hair Removal Products

Once again, brands important to provide reassurance of not being damaging to skin and having good results– Brands currently purchased include Veet (Immac), Nair

and Jolene– Some had almost historical relationship with brand

Key critical success factors are:– Whether the product is good for sensitive skin

(fearing red blotchy skin) – Its efficacy – Ease of use/how messy

Boots and Tesco again main purchase points Price is deemed less importance because narrow

competitive price bracket

Once again, brand driven market though lack of true choice (e.g.few branded products, not many price points) not always top of mind

33

Liso

Mixed reactions to the promo– Some liked expert view whilst others were very cynical– Felt very repetitive but easy to use– However, differentiation from competitor products not always

obvious Product has appeal via perceived simplicity of

application, spray mechanism less messy than creams and less odour– Exfoliating action different and implying less harsh

Want to know whether relevant to sensitive skins But lack of brand reputation weakens appeal

– For some, JML would have helped Canister and to some extent packaging off putting

– Looked either too masculine or utilitarian Price too high for this type of product vs. competitors

– But bottle feels heavy so some thought it would be vfm

Product appealed but price put many off; packaging could be improved and JML branding would enhance trust

“The product looks good but the price is more than I normally pay, there’s no incentive to try it”.[Female, Non Cust, Harrow]

34

Snore Relief

Most see as potential solution to fairly common & aggravating problem

However, issue of credibility for many– Question why only works for 80% of cases– Perception of over claim and if it is as good as this it would

be a ‘wonder drug’– Though minority thought if price OK then could trial

Mention of natural ingredients very important for some– High visibility on packaging a positive

Also, reassurance & confidence built through mention of Fountain Health– But generally no issues with JML involvement in this ingestible– Branding discreet enough thus would not always have been noticed

Packaging has quality feel

Difficult to give proper feedback on product since audience was generally not buying anti snoring products

Note: very few buyers across sample thus more theoretical results– More likely to inform about category– Amongst buyers, some were totally rejecting of ingestible anti snoring products

35

Impact of Fixture

Location unpopular & unhelpful in generating credibility for products– Placed near household products slightly incongruous (but store

itself not a natural destination for category)– JML slimming needed to be closer to give greater sense of category– Critical to be sensitive to other product categories around

Respondents were drawn to the bright blue eye on Radiance – However, confusion with contact lenses product

Fixture looks unlike traditional health and beauty– Location in-store, samples, mirrors, testers, offers– For some skin product next to eye product was also unnatural– JML shelf edge strip feels more for tools or sports

Presence of JML logo at fixture critical to reinforce trust– Concept of big co. as recourse

Suggested improvements included samples, trial sizes and posters advertising products’ arrival

Good stand out of fixture and appeal of JML brand may have driven sales but much could be done to enhance fixture further by making it more H&B

36

JML Branding

JML customers seemed to reject in principle idea of JML branded health products

However, quality of packaging & advertising of products tested helped entice

Within this context JML brand (often equated with quality and trust for customers) helped to reassure thus was seen as key

Non JML customers however do not have similar associations with brand– Thus here JML branding generally more likely to bring product

quality down– However, those most interested in products felt that appeal and

quality feel of packaging did not need reassuring brand– JML then could benefit from being associated to these products

Some compared category to Atmosphere (Primark) and George (Asda)– Useful to have sub-brand which speaks to consumers

Issue of JML branding relates to whether JML wishes to broaden & increase market penetration or whether wishes to generate product sales

Conclusions & Recommendations

38

Conclusions (1)

Significant increase in awareness of JML brand since 2004 especially amongst younger market– Market penetration has also increased amongst this target

Brand perceptions are very strong amongst customers across all brand values– Non customers obviously provide a different picture– Whilst vfm, availability and innovation tend to be

associated with the brand, quality is suffering– Qualitative data essentially demonstrates that non

customers view JML as cheap and cheerful with some ‘tacky’ connotations

Thus surprising perhaps that product testing amongst non customers indicated that whilst the brand perceptions did not change, the products were seen as costly– Since lack trust in brand, would need testers or mini size

to trial– Customers generally more positive though packaging can let

down

JML has generated success over the last three years resulting in increased awareness and broader market reach

39

Conclusions (2)

The JML brand mostly associated with cleaning, DIY and other household products can stretch into electricals, pets, sports etc– But health is more complex category where fear of

failure is at forefront of consumers’ minds and more is at risk than money

However, all products tested researched reasonably well amongst a core audience and absence of credentials in this area does not diminish appeal– No doubt though that JML customers need trust and

reassurance enhancement provided by the brand– For non customers, it is actually the brand which would

benefit from being associated with the products The fixture in-store could however be improved to

bring it more in line with other similar products

JML branding should appear on the new health products - either reassures potential buyers or helps the brand grow

40

Recommendations

On products worth around £10+, packaging needs to look more expensive and substantial– Will help enhance quality feel– May create more appeal amongst those with no JML experience

Health/beauty category needs to have a unique & consistent in-store look and feel– Even in Woolworths, needs to be more feminine and allow for opened samples, mirrors, testers etc.

JML branding needs to appear on all products– Though more discreetly on health items