JML Brand Review

1. 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) Fieldwork conducted w/c 5th November 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)

6. Quantitative Appraisal of Brand Awareness & Perceptions

7. Awareness of JML Awareness of JML (name and logo) has increased significantly since 2004 Awareness of JML (%) Higher levels of Awareness of Name % 25-34 51 35-44 52 Wales 38 Lower levels of Awareness of Name % 55-64 31 65plus 22 London 21 Base: all (2,009)

8. Purchase of JML Similarly, significant increase in penetration of JML products Ever Purchased a JML Product (%) Higher Incidence % 35-44 24 45-54 23 Wales 25 Yorks/Humb 22 Lower Incidence % 16-24 13 65plus 9 London 7 Base: all (2,009)

9. Sources of Household Gadgets & Convenience Products Marginally ahead of Tesco, B&Q remains most popular source of household gadgets and convenience products Source of Purchase (%) 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 (%) Base: all (2,009)

11. Purchase Motivators Quality, value and problem solving are all potent motivators to purchase - innovation less of an obvious influence Purchase Motivators (%) Base: all (2,009)

12. Image of JML Significant differences between those who have, and those who have not, purchased JML products - quality an issue for non purchasers Image of JML (% apply) Purchase motivator ranking 2nd 4th 5th 3rd 1st Base: all aware of JML (1,125)

13. Image vs Purchase Motivation - Buyers Strong image amongst buyers of JML products JML Buyers Stronger Purchase Motivator % influence purchase % applies to JML JML Stronger Image Base: all purchasers of JML (345)

14. Image vs Purchase Motivation - Non Buyers Suggestion that JML communications could work stronger throughout, but particularly to create quality and problem solving associations amongst non purchasers Non Buyers (Aware of JML) Stronger Purchase Motivator % influence purchase % applies to JML JML Stronger Image Base: all aware but non purchasers of JML (713)

15. Qualitative Perceptions of JML Brand

16. Brand Associations - Customers Positive associations reaffirm core brand values: innovative, solving problems, available and vfm • 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 • 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) • Marketing-related • TV & in-store ads • Eye catching & inspiring in-store activity • Ads demonstrate problem-solving • & practicality of products • Good, straightforward ads • Sexy voice

17. Brand Personality - Customers Not a safe personality - from consumer friendly (Branson) to slightly dodgy but finds safety in its accessible, middle of the road feel • Middle aged • Middle of the road • Person with ideas • Practical

18. Brand Associations - Non-Customers 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 on Sky” [Male, Non-Cust, Manc] • Channel-related • Woolworths, Boots & • Debenhams • Betterware • Website • 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 • Product-related • Kitchen gadgets • Ironing cover • Bikini trimmer, stick on bras • Household products • Helpful • Marketing-related • In-store TV ads

19. Product Review

20. Doktor Power Mixed reactions here - a minority of customers only would buy (influenced by existing buyer); for others, issues of trust and cost - + • 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 • 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 “It almost looks too good to be true. You can clean almost anything with it”. [Male, Customer, Manc]

21. Jumbo Eraser Block Such a departure from usual cleaning products makes this a more challenging product to sell • 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

22. Gem Styler & Fashion Magnets Products are appealing and original but target market let down by price and/or packaging - + • 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 • 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

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

26. Potential for Brand Stretch

27. Categories Associated with JML Core categories relate to home solutions, especially cleaning, utensils & DIY • 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

28. Categories Associated with JML H&B not obvious categories for JML & labeling on website will need to be more explicit • 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) “I’d be nervous about buying anything that touches my skin from JML. But I might buy a razor”. [Female, Non-cust, Manc]

29. Other Potential Categories Room for brand stretch but ‘medical’ initially making customers / potential customers nervous - may need sub brand Hobbies & Crafts Children Pet Supplies Medical Sports • Fear of failure has high risks • Bad publicity re Chinese toys recently Electrics Gadgetry Gardening

30. Purchasing Anti Wrinkle Products Brand plays a driving role in selection of anti wrinkle products and marketing helps drive choice in a very busy marketplace • 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)

31. Radiance Crucially Radiance appeals to core target market but also succeeds in improving brand perceptions on quality through packaging for all • 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 “The product looks interesting but at first glance I thought it was contact lens cleaner”. [Female, Cust, Harrow]

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

33. Liso Product appealed but price put many off; packaging could be improved and JML branding would enhance trust • 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 “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 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 • 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

35. Impact of Fixture 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 • 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

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

37. Conclusions & Recommendations

38. Conclusions (1) JML has generated success over the last three years resulting in increased awareness and broader market reach • 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

39. Conclusions (2) JML branding should appear on the new health products - either reassures potential buyers or helps the brand grow • 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

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