Rolling out profits
Growth by individual brands – in some cases reaching high double digits - is no mean feat in a category which faces little respite from the ongoing advance of private label alternatives. It clear that these brands' reputation for quality combined with competitive pricing is still well able to attract consumers in their droves
11 February 2015
AT A GLANCE: HOUSEHOLD PAPER
- SCA Ireland has a portfolio of leading hygiene brands including Tena, the market leader in incontinence care* and feminine hygiene brand Bodyform
- SCA’s away from home (B2B) division also manages the Tork brand, which is number one in the workplace hygiene sector
- Globally, about 80% of all of the retail products SCA produces are purchased by women, which is why SCA has chosen to support the only all-female team in this edition of the Volvo Ocean Race
- SCA has a total of more than 700,000 followers to date on social media networks
- Cushelle holds more than a 10% value share in the toilet tissue category and has value sales over €11 million**
- Velvet toilet tissue has value sales of almost €6 million**
- Plenty is Ireland’s number one household towel brand with value sales of circa €6 million**
- In the toilet tissue sector, the Regina brand is now commanding a 8.3% market share, a jump of over 25% on the same period in 2013***
- In terms of kitchen towel, Regina with only two products now holds a 14.9% market share, an increase of 47.5% on the same period in 2013***
- Regina Blitz and XXL Household towels, continue to outperform in the household towel category, with year-on-year (YOY) growth of over 47%**
- In the last 24 weeks (up to 5 January 2015), the Nicky tissue brand has moved from a 9% market share in 2013 to 13.2% in 2014/15; an increase of over 46% in a declining sector****
- Kittensoft saw growth again in 2014 by over 12% in a declining toilet tissue market of 1.6% (Source: Nielsen)
- In the 24 week period to Jan 4th 2015 Kittensoft has grown to 14.2% market share, an increase of over 22% on the same period 2013 (Source: Kantar)
*(Source: Dunnhumby MAT data 7 Jan 2013 – 5 Jan 2015)
**(Source: Kantar Worldpanel Data to 9 November 2014)
***(Source: Kantar 24 weeks to Jan 2015)
In a market facing intense competition from private label competitors, it is impressive that individual household paper brands have managed to maintain a strong performance and record growth. Focusing on range USPs has proved important in maintaining consumer loyalty and attracting new shoppers. These include factors such as strength and durability, luxury, valued skincare features, anti-bacterial properties and environmentally friendly credentials.
Innovative marketing campaigns and eye-catching point of sale materials have also played a key role in attracting consumer attention, as have engaging social media platforms. Leading brands have also responded to consumer demand by offering excellent value-for-money for budget-conscious households, and providing a range of sizes and formats to suit all needs.
SCA is a leading global hygiene and forest products company, with operations in Ireland based in Dublin. The group develops and produces sustainable personal care, tissue and forest products. Sales are conducted in about 100 countries under many strong brands, including the leading global brands Tena and Tork, and regional brands such as Cushelle, Plenty, Velvet and Bodyform and Demak’Up.
SCA’s tissue brands Cushelle and Velvet, along with the company’s household towel brand Plenty, will continue in 2015 to drive strong brand awareness and rate of sale through investing in television, radio and cinema advertising, as well as digital marketing, merchandising and shopper marketing campaigns. A combined €1 million marketing investment will support the brands in 2015.
Cushelle holds over 10% value share in the toilet tissue category and has value sales over €11 million*. Cushelle had an exciting 2014, with the launch of a new TV commercial, new packaging and a successful winter Cushelle Koala on-pack giveaway. In 2015, the brand will invest in TV and cinema advertising, utilising the computer generated Cushelle advert that builds on the emotional engagement of Koala, appealing to both children and parents. An in-store brand activation will also bring Koala to life in store in leading retailers this year. Koala has already proven to be a valuable brand asset, loved by consumers and shoppers young and old.
Velvet toilet tissue states that it is a must-stock brand in the toilet tissue category with value sales of almost €6 million*. Velvet will continue to promote its unique ‘Three Tree Promise’ which states that for every tree used when making Velvet, the brand replaces three. This initiative has already seen four million extra trees planted. In 2014 the brand launched a high impact radio campaign to communicate this message. The radio adverts, voiced by award- winning garden designer Diarmuid Gavin will run again in 2015 and will be complemented with investment through shopper marketing activity and digital marketing.
Plenty is Ireland’s number one household towel brand with value sales of circa €6 million*. The focus for the brand in 2015 is to continue to drive category innovation and increase shopper awareness of the brand message that ‘Plenty does more than you think’. Whatever the job, Plenty has a range of products for every occasion. Strong when wet and super absorbent, it’s not surprising that Plenty is Ireland’s favourite household towel*
SCA is also participating in the 2014-2015 Volvo Ocean Race with an all-female crew. The company has chosen to support an all-female crew as globally, about 80% of the retail products SCA makes are purchased by women. The race will come to a close in June 2015 and is possibly one of the world’s toughest sporting events for teams.
*(Source: Kantar Worldpanel Data to 9 November 2014)
Ready to roll!
The Regina tissue brand was launched in Ireland in 2007 and today takes its place as one of the leading premium brands.
2014 saw another strong year for Regina in the Irish market. In the toilet tissue sector the brand is now commanding a 8.3% market share, a jump of over 25% on the same period in 2013. When it comes to kitchen towel, Regina with only two products now holds a 14.9% market share, an increase of 47.5% on the same period in 2013*.
Innovation is at the heart of the Regina Brand and 2015 sees the launch of new Regina Rollalong, a toilet tissue with 500 sheets of soft tissue paper per roll. This will be available in six rolls per pack and is a great space saver for families. It will be supported with in-store promotions and consumer couponing
Regina Blitz and XXL household towels continue to outperform in the household towel category. The impressive growth of over 47% YOY*, shows that consumers trust the performance of these products for all jobs around the house.
The Regina paper range will be supported continuously in the year to come with TV advertising, in-store marketing and promotional campaigns ensuring the consumer is rewarded by purchasing this successful premium brand.
*(Source: Kantar 24 weeks to Jan 2015)
Quality, innovation and value
2014 was another great year for the Nicky tissue brand. In fact for the last 24 weeks (up to 5 January 2015) Nicky has moved from 9% market share in 2013 to 13.2% in 2014/15. This is an increase of over 46% in a declining sector (Source: Kantar).
This confirms its loyal customer base in Ireland and that the Nicky brand continues to deliver quality, innovation and great value for money to the Irish consumer.
Offering a product portfolio for all segments of the toilet tissue market, the Nicky paper brand believes it offers a must-stock for all retailers. From Nicky Soft Touch two ply toilet tissue to the new Nicky Elite three ply aloe vera premium variant, the consumer has a great choice offered by this quality brand.
In the kitchen towel area, the brand states that Nicky Lemon, a decorated kitchen towel with a lemon scented core is a hit with the Irish consumer. 2015 will see Nicky Lemon deliver great consumer promotions including the addition of a 50% extra free pack in March, confirming its commitment to deliver great value to the Irish consumer
2015 will also see the brand’s partnership with the Jack & Jill Children’s Foundation continue and Nicky will be adding the Jack & Jill logo to its Soft Touch brand.
For more information, visit www.nicky.ie.
Kittensoft saw growth again in 2014 by over 12% in a declining toilet tissue market of 1.6% (Source: Nielsen).
In the 24 week period to 4 January 2015, Kittensoft has grown to a 14.2% market share, an increase of over 22% on the same period in 2013 (Source: Kantar).
Re-launched back in September 2013, Kittensoft has regained its consumer loyalty as one of Ireland’s leading toilet tissue brands. 2015 sees another eventful year for Kittensoft as it launches its super premium variants; a sector that is in growth in the Irish market.
Kittensoft Aloe Vera, a three ply toilet tissue enriched with balm has been available since January 2015 in four and nine roll variants along with Kittensoft Quilted Dreams – a four ply toilet tissue which promotes luxury softness.
Limited edition packs will be available throughout the year displaying different themes for different seasons and the Irish consumer will also benefit from some extra free packs on Kittensoft White. 2015 will see a full year of great promotions, new packs, TV advertising and consumer support for the Kittensoft brand.
Continuing to bring value home
The Homestead paper range continues to be one of the strongest categories within the Homestead portfolio. 2014 was an extremely competitive year in this category and the brand states that sales of Homestead tissue continue year-on-year to be extremely positive.
Products like the Homestead Comfort 16 Roll (RRP €4.99) delivered a quality product at a very competitive price to the consumer and it was promotions like this that ensured consumer support for the Homestead tissue brand in 2014.
The paper range, which includes a variety of toilet rolls, kitchen towels and mansize tissues, is produced to the highest quality using 100% virgin pulp paper sourced from well managed forests. The selection rivals any market leader while remaining well priced in order to compete successfully in the private label market.
The continuation of our price marked packs into 2015 will ensure continued day to day value for the consumer, across the whole Homestead paper range.
Homestead brand manager, Janice Gibney added: “As the market becomes increasingly competitive it is imperative that we review our pricing on a continual basis to ensure we continue to bring value home.”
Q & A with…
Simon Pickering, SCA
SCA is a leading global hygiene and forest products company with offices at Blanchardstown in Dublin.
Simon Pickering, who heads up the consumer goods operation for SCA Ireland,talks here about SCA’s support of Team SCA in the Volvo Ocean Race, the world’s toughest ocean challenge.
Why did you feel the Volvo Ocean Race was a good fit for your brands?
As a company, SCA is on a journey of change – building on its 90 year heritage as a forestry company towards a global hygiene FMCG company. Our participation in the race with Team SCA is very much part of this transformation, providing us with a unique global platform for building greater awareness of SCA and our leading B2B and household hygiene brands.
Globally, about 80% of all of the retail products SCA produces are purchased by women, which is why we have chosen to support the only all-female team in this edition of the Volvo Ocean Race. This also gives SCA a natural interest in the role that women play in the field of hygiene and millions of families around the world.
SCA Ireland has a portfolio of leading hygiene brands including TENA, the market leader in incontinence care* and feminine hygiene brand Bodyform. SCA’s away from home (B2B) division also manages the Tork brand, which is number one in the workplace hygiene sector.
The company also distributes Ireland’s number one brand of household towel, Plenty** and household favourites, Cushelle and Velvet toilet tissue.
Team SCA will be the first all-female crew to participate in the race in a decade – what message does this send to your customers and why did you feel it was an important one for you to project?
For SCA, the race is about empowering women, building a high-performance team, cooperation and driving towards common goals with a clear strategy – many similarities with SCA’s own business.
Furthermore, SCA supports women’s empowerment and their freedom to participate fully in society – socially, economically and professionally – across the world by giving them access to and education about hygiene products and solutions.
SCA’s vision is to make a difference by providing the essentials for everyday life and Team SCA will be at sea for nine months, which means these 11 women will also encounter unique hygiene challenges over the course of the race.
SCA improves hygiene standards worldwide with its hygiene solutions. For the millions of existing users of its products and services, and for the billions of people in emerging markets, SCA develops innovative solutions that make it easier for people to live healthy, sustainable lives – this is the key message we want to share with our consumers.
How will you promote your partnership with the Volvo Ocean Race through both traditional and social media channels?
We’re about a third of the way through the race and we’ve been utilising Team SCA as a key vehicle to raise awareness of SCA and its portfolio of brands in Ireland.
For the first half of 2015 we’re embarking on targeted PR activity to support our communication in traditional media, supported by a really exciting social media campaign including high profile bloggers to drive conversation online.
SCA will also be continuing with its popular UK and ROI blog on the Huffington Post, which will be providing consumers with exclusive Team SCA content straight from the boat until June 2015. Delivering a readership of over 7,200,000, this is a key initiative for SCA to continue to raise its profile: http://www.huffingtonpost.co.uk/corinna-halloran/
This, coupled with regular updates on Team SCA’s social channels, means that SCA is set to reach more consumers that ever before – keeping both the company and its brands top of mindover the course of 2015.
How important is social media in terms of creating a bond with your consumers?
Social media is very important to SCA as consumers become more reliant on instantaneous updates and impartial recommendations to inform their product decisions.
As such, Team SCA engages with its consumers over multiple social platforms:
Google Plus: https://plus.google.com/+Teamsca/posts
With a total of more than 700,000 followers to date, SCA is committed to maintaining a bond with its consumers via regular content and noteworthy updates about this important project.
* (Source: Dunnhumby MAT data 7 Jan 2013 – 5 Jan 2015)
** (Source: Nielsen Scantrack data to November 2014)