Contents:

Scopes and Themes What you need to know Definition Data sources Sales data Consumer survey data Abbreviations and terms Abbreviations Terms Executive Summary Market size The rich get richer—two key players increasingly dominate Axe continues to drive the men’s segment Secret leads the women’s segment by catering to multiple needs Apart from Degree, unisex segment continues to lose relevance Wide availability across channels, but Wal-Mart sets the retail tone Population shifts may point to opportunities among seniors and Hispanics Innovation has largely been limited to secondary benefits, marketing Usage frequency is highest among teens and the youngest adults Hispanics and blacks are highly engaged in the category Market Size and Forecast Key points In a flat market, growing sales has meant growing share In the battle for share, the big get bigger Figure 1: Total U.S. sales and forecast of antiperspirants and deodorants at current prices, 2002-12 Figure 2: Total U.S. sales and forecast of antiperspirants and deodorants at inflation-adjusted prices, 2002-12 Wal-Mart sales Competitive Context High penetration and usage rate makes for a highly competitive market Line extensions are the principal means of competition The rich get richer—two key players increasingly dominate Wal-Mart sets the retail tone Segment Performance Key points Gender-specific appeals drive Figure 3: U.S. sales and forecast of antiperspirant and deodorant at current prices, by segment, 2002-12 Figure 4: U.S. sales of antiperspirant and deodorant, by segment, 2005 and 2007 Segment Performance—Men’s Products Key points Lack of news leads to softness—can efficacy jumpstart sales? The Axe Effect is still in effect, for now Figure 5: U.S. sales and forecast of men’s antiperspirant and deodorant, 2002-12 Segment Performance—Women’s Products Key points Women’s brands look for growth by appealing to a complex set of needs Figure 6: U.S. sales and forecast of women’s antiperspirant and deodorant, 2002-12 Segment Performance—Unisex Products Key points As the category goes gender-specific, Unisex loses relevance Degree succeeds with gender-specific appeals Figure 7: U.S. sales and forecast of unisex antiperspirant and deodorant, 2002-12 Retail Channels Key points Wal-Mart leads the pack, but opportunities in other channels still exist Figure 8: U.S. sales of antiperspirant and deodorant, by retail channel, 2005 and 2007 Retail Channels—Other Key points Sweet spot for Wal-Mart Figure 9: U.S. sales of antiperspirant and deodorant at Other channels, 2002-07 Retail Channels—Supermarkets Key points Supermarket’s focus on fresh takes away from the center store Figure 10: U.S. sales of antiperspirant and deodorant at supermarkets, 2002-07 Retail Channels—Drugstores Key points The drug channel is primed for premium Figure 11: U.S. sales of antiperspirant and deodorant at drug stores, 2002-07 Market Drivers Total population drives the market, but shifts in composition may point to new targeted opportunities among seniors and Hispanics Figure 12: U.S. population and projections and usage of antiperspirant and deodorant, by age, 2002-12 Figure 13: U.S. population and projections and usage of antiperspirant and deodorant, by age, 2003-13 Leading Companies Key points Company scope and scale are key to success Figure 14: Sales of leading antiperspirant and deodorant companies, 2006 and 2007 Brand Share—Men’s Products Key points Men’s brand shares hold steady in a quiet year Clinical strength may recast shares in 2008 Figure 15: FDM brand sales of men’s antiperspirants and deodorants in the U.S., 2006 and 2007 Brand Share—Women’s Products Key points Secret’s growth paces the segment Look for Secret and Dove to drive share shifts in 2008 Figure 16: FDM brand sales of women’s antiperspirants and deodorants in the U.S., 2006 and 2007 Brand Share—Unisex Products Key points Degree competes for share with single-sex brands Figure 17: FDM brand sales of unisex antiperspirants and deodorants in the U.S., 2006 and 2007 Brand Qualities Axe Old Spice Right Guard Secret Dove Degree Innovation and Innovators Antiperspirants regulated as drugs, deodorants considered cosmetics Secondary benefits key areas for innovation Efficacy back in style? Secret elevates scent in the women’s segment Advertising and Promotion Overview Figure 18: Media expenditures of selected antiperspirant/deodorant products, 2005-06 Men’s brands Axe Figure 19: Axe television ad, 2007 Figure 20: Axe Vice television ad, 2007 Old Spice Figure 21: Old Spice television ad, 2007 Figure 22: Old Spice television ad, 2007 Gillette Figure 23: Gillette Clinical Strength television ad, 2007 Right Guard Figure 24: Right Guard Sport television ad, 2007 Figure 25: Right Guard Extreme television ad, 2007 Women’s brands Secret Figure 26: Secret television ad, 2007 Figure 27: Secret Clinical Strength television ad, 2007 Dove Figure 28: Dove Ultimate Clear television ad, 2007 Soft & Dri Figure 29: Soft & Dri television ad, 2007 Unisex brands Degree Figure 30: Degree Men Clinical Protection television ad, 2007 Figure 31: Degree Women Clinical Protection television ad, 2007 Figure 32: Degree Women Ultra Clear television ad, 2007 Usage Trended usage and frequency of antiperspirants or deodorants Figure 33: Usage of antiperspirants or deodorants, by age and gender, May 2006-June 2007 Figure 34: Usage of antiperspirants or deodorants, by age, May 2006-June 2007 Usage of deodorant, antiperspirant, combination, or fragrance Figure 35: Regular usage of antiperspirant/deodorant or perfume/cologne, by gender, December 2007 Types tried Figure 36: Types of antiperspirant or deodorant tried, by gender, December 2007 Figure 37: Types of antiperspirant or deodorant tried, by age, December 2007 Forms of deodorant and antiperspirant Figure 38: Forms of antiperspirant or deodorant used, by gender, December 2007 Figure 39: Forms of antiperspirant or deodorant used, by age, December 2007 Scented or unscented Figure 40: Scented and unscented deodorant/antiperspirant, by gender, May 2006-June 2007 Brands Popularity of brands Figure 41: Brands of antiperspirant/deodorant used, by age, May 2006-June 2007 Attitudes and purchase preferences regarding brands Figure 42: Attitudes and purchase preferences regarding brands, by gender, December 2007 Figure 43: Attitudes and purchase preferences regarding brands, by age, December 2007 Switching brands Figure 44: Brand switching, by gender, December 2007 Figure 45: Brand switching, by age, December 2007 Reason for switching to a new product of the same brand Figure 46: Reason for switching to a new product of the same brand, by gender, December 2007 Figure 47: Reason for switching to a new product of the same brand, by age, December 2007 Reason for switching to a new brand Figure 48: Reason for switching to a new brand, by gender, December 2007 Figure 49: Reason for switching to a new brand, by age, December 2007 Attitudes and Motivations Attitudes and purchase preferences Figure 50: Attitudes and purchase preferences, by gender, December 2007 Figure 51: Attitudes and purchase preferences, by age, December 2007 Attitudes and purchase preferences (2) Figure 52: Attitudes and purchase preferences (2), by gender, December 2007 Figure 53: Attitudes and purchase preferences (2), by age, December 2007 Race and Ethnicity Hispanics and blacks are highly engaged in the category Figure 54: Usage of antiperspirants or deodorants, by race/ethnicity, May 2006-June 2007 Figure 55: Types of antiperspirant or deodorant tried, by race/ethnicity, December 2007 Figure 56: Forms of antiperspirant or deodorant tried, by race/ethnicity, December 2007 Figure 57: Scented and unscented deodorant/antiperspirant, by race/ethnicity, May 2006-June 2007 Figure 58: Use of antiperspirant/deodorant brands, by race/ethnicity, May 2005-June 2006 Figure 59: Attitudes and purchase preferences regarding brands, by race/ethnicity, December 2007 Figure 60: Reason for switching to a new product of the same brand, by race/ethnicity, December 2007 Figure 61: Reason for switching to a new brand, by race/ethnicity, December 2007 Figure 62: Attitudes and purchase preferences, by race/ethnicity, December 2007 Figure 63: Attitudes and purchase preferences (2), by race/ethnicity, December 2007 Teens Usage of antiperspirants or deodorants—constant from 2001 through 2007 Figure 64: Teen usage of antiperspirant or deodorant, by age and gender, May 2006-June 2007 Figure 65: Teen usage of antiperspirant or deodorant, by race/ethnicity, May 2006-June 2007 Physical forms of deodorant and antiperspirant Figure 66: Teen usage of physical forms of deodorants and antiperspirants, by age and gender, May 2006-June 2007 Figure 67: Teen usage of physical forms of deodorants and antiperspirants, by race/ethnicity, Popularity of brands Figure 68: Use of antiperspirant/deodorant brands among teens, by gender, May 2006-June 2007 Figure 69: Use of antiperspirant/deodorant brands among teens, by race/ethnicity, May 2006-June 2007 Appendix: Other Useful Consumer Tables Usage Figure 84: Regular usage of ap/deo or perfume/cologne, by age, December 2007 Figure 85: Regular usage of ap/deo or perfume/cologne, by income, December 2007 Types of antiperspirant or deodorant tried Figure 86: Types of antiperspirant or deodorant tried, by income, December 2007 Forms of antiperspirant or deodorant used Figure 87: Forms of antiperspirant or deodorant used, by income, December 2007 Popularity of brands Figure 88: Brands of antiperspirant/deodorant used, by gender, May 2006-June 2007 Brand switching Figure 89: Brand switching, by income, December 2007 Reason for switching to a new product of the same brand Figure 90: Reason for switching to a new product of the same brand, by income, December 2007 Reasons for switching to a new brand Figure 91: Reason for switching to a new brand, by income, December 2007 Attitudes Figure 92: Attitudes and purchase preferences, by income, December 2007 Figure 93: Attitudes and purchase preferences (2), by income, December 2007 Purchase channels Figure 94: Purchase channels, by gender, December 2007 Figure 95: Purchase channels, by age, December 2007 Figure 96: Purchase channels, by race/ethnicity, December 2007 Figure 97: Purchase channels, by income, December 2007 Appendix: Trade Associations

Companies Mentioned

Procter & Gamble Company (The) Global Gillette Wal-Mart Stores (USA) Unilever USA Dial Corporation, The Henkel Corporation