Gillette Venus

Name Phone Number

Sukhada Dhone 8884111657

Rohit Jaiswal 7676990235

Sushant Salunke 8147553650

Team Name: “BECAUSE KOTLER SAID IT”

2012 2013 2014 2015 2016 2017

6,755.10 7,895.30 9,136.40 10,523.20 12,083.80 13,660.30

Potential HR category growthDepilatories (Rs. Mi...

Can Razors category gain 20% in 3 years ? - YES

Year 2014 2015 2016Venus Target (Rs. million) 913.64 1578.48 2416.76

• Reasons: • Robust Category CAGR: 16.2%• Increasing social image- consciousness,

working women, synonymous to beauty and confidence

• VEET, launched in 2004 captured 12% of market in 1st year

• P&G Venus can capture 10% of the market in 1st year, 15% in 2nd year and 20% in 3rd year

HR Industry Landscape Go to Market Supply ChainMarketing Mix

Industry Landscape: Hair Removal (HR) Category

• Category is growing: 26.2% CAGR in 06-11• Only 68 % Indian women go for HR v/s 80% in developed

countries• Hair Removal Product Consumption

• 54% for 15-34 years age group• 39% for 34-44 years age group • 18% for 45-65 years age group.

• The top 3 application areas in India:

• Arm & leg hair removal is higher among young women • Driven by the garment preferences

Female Hair Removal Category:

Competitive Landscape:

Dabur India28%

Reckitt Benckiser

25%Wyeth

Ltd18%

Kundan Care

Products Ltd4%

Jolen In-ternatinal

Ltd1%

Others24%

Depilatories Company Shares by Value 2012

• Dabur leading the depilatories (28% in 2012), RB is catching up fast

• Average unit prices increasing, value-added variants are being launched

• Smaller size packages: to penetrate in rural India

Razor shaving is in introduction stage

Consumption goes down with age

Source: Euromonitor Report, Depilatories in India, Sep 2013

Source: Euromonitor Report, Depilatories in India, Sep 2013

No. of Razor Units

832853.23 1438906.11 2203062.89

No of cartridge pack of 4 (Units)

2498559.71 4316718.32 6609188.69

Category

% User

Cream 40%Waxes 75%Shaving Razor

20%Based on survey results, multiple usage are also considered

Underarms

bikini area Face

Pricing: Premium PricingReasons• No to Skimming as category is not

established• No to penetration as it will signal low

quality• Go for Premium Pricing: reflecting

high performance • To differentiate from Satin care• No competition in the HR razors

category• TG is India 1 & 1+

Portfolio Mix between blades & Razors

Portfolio Mix between Venus variants

1-2 Year:Bikini

Trimmer

3rd YearLaunch Venus Breeze

• Two types consumers • Repeat purchasers & • One time users

• Assumption: 20% churn rate • Repeat purchaser will change the Razor

after buying two kits of blades ( 4 blades each)

• Portfolio Mix to be maintained in store for Razor and blades = 1* 0.2 +0.8 * 9

= 0.2+7.2=7.4• Portfolio mix for razor to blades should be

1: 7.4

Year 1 Year 2 Year 3

5.9 Mil-lion

10.3 Mil-lion

15.7 Mil-lionNo of women customers to reach to

Assumption• Reach to awareness 70%• Awareness to trial 20%

Considering the high reach targets and introduction phase go for traditional media followed by trial and trade

60%15%

25%

% Allocation Media Trade spend Trial

Investment Split: Media +Trade + Trial

Concept testing for current PricingStep 1 – Show the informative print advertisements to customers Step 2 - Explain benefits in terms of differentiationStep 3 – Ask for how much they are will to pay for product in given range

In Depth interview: 12 India 1 and 1+ customersInsight 1Most of the women use razors for underarms shaving ( sensitive skin) and bikini line ( embarrassment )

Insight 2Women think its shaving is tedious activity as it involves use of pre-shave and post shave

Secondary Research1) 82%* women go for bikini line Hair

Removal

2) Competitors are giving value added benefits: • VEET claiming moisturizing +

fairness properties claims **

Launch plan for New Variants

* Veet case, Reckitt Benckiser http://www.rb.com/documentdownload.axd?documentresourceid=14653** Euromonitor Report, Depilatories in India, Sep 2013

Total number of users required to achieve, based on Projections

832853.236

1438906.11

2203062.899

Marketing Mix Go to Market Supply ChainHR Industry Landscape

http://www.rb.com/documentdownload.axd?documentresourceid=14653




Market Size

Considering the Consumer Needs, Opportunity in the market and the PODs, Positioning strategy for Venus is derived

• Venus is Fastest,• Most convenient

method. • There is no

product/brand which is providing both convenience/quick and fashionable image

• Fashion image to break the problem mindset

FashionProduct

Solution Product

Convenience/fast

Long Lasting/ slow

Gap

Cream

Waxing

Epilator

Laser

One glide (fast and convenient) to Sensual Skin (fashion statement)

It’s a fashion thing like hair grooming and not a solution to some problem

Barriers to Adoption Brand ResponseProcessAwareness

Consideration

Purchase

• Beautiful, smooth, glowing skin

• Quick method to give smooth skin everyday

• I want efficient method – one stroke

• No hair should be left behind• Pre and Post care should be

minimal

Consumer Needs Window of Opportunity

I didn’t come to know about Venus through any of the media vehicles or other touch points

No recommendation from friends or Influencers

Coarser and darker hair Faster hair regrowth Dry and dark skin Nicks and cuts Pre-shave and post shave required Can’t be done in room like cream Razor becomes blunt if kept long

unused Is it different from Satin Care Why so costly? No Bikini Variant

• It removes dry skin• Smooth shave in one

glide• Convenient and fastest• No hard/thick regrowth• Doesn’t turn out to be

blunt• Any cartridge to any

Venus razor• Create buzz about new variant

• Convincing value proposition

Perceptual Mapping

Waxing Depilatory Creams

• Impersonal• Can’t be done

on small hair• Painful• Allergy• Messy• Time consuming

• Chemical• Allergy• Dark patch on skin• Leaves hair behind• Makes you wait

POD Positioning


Media Vehicle - Consumption habits of TG

The Checklist to Sensual Skin Single glide smoothness No Dryness Glowing skin from close shave Easy to use

Goddess in Indian context

Pink isn’t just a color..it’s feminism

• Razor color• Packaging• Store Shelf

Current Communication Issues

“Reveal the Goddess in You”

Communication Strategy

“Shaving is a man thing”Signal feminism by a pink

•Motherly figure•Values and tradition•Doesn’t associate withbeautiful skin

Product AttributeFast & Convenient

Focus on Fashion Statement“Sensuality”

Triple bladeAloe Vera & Vit E stripProtective cushion

Pivoted head

Burst Myths to tackle Barriers to Purchase

Digital Media Effective Freq: 4-7+

[FB, Blog, Forums, twitter, Pinterest]

RadioEffective Freq: 5-8+

Print Effective Freq: 1-2+

24.3% 22% 10%

Friends Beauty Stylist

Personal Bloggers

Influencer in HR category

Objective: To Build high REACH

• Use broad range of Media

• Use Broad station MIX• Different day parts• Use all possible Generes

Venus Lounge App

Digital Media (Laptop) Mobile Apps22% 18%

Social Media

Multimedia Email Blogs &

Travel

21.8%

12% 4% 2.5

%IM Social

MediaOther Apps

69% 15% 16%

Digital Media Consumption Habits (Src In Mobi, Neilson, Comscore)

• Fashion Companion App• Burst Myths• Daily/ weekly tips • Campaign & Blog Contest

•Bloggers have higher “Right to Win”•Call the bloggers to write on “Why I shave?” and include “Venus - One Glide to Sensual Skin” in the article. •Publish the blog on the Venus website.•Share the blogs on Facebook to generate conversation on Shaving.

53% 26% 23%


Measure effectiveness using:• Engagement• influencer activity• Reach• Sentiment analysis

Channels to Focus Insight: • HR razor is emergency product, has to be available quickly• Myth of Razor becoming blunt if unused for long period: Hence

no stocking• VEET is easily available, make VENUS easily available as well• Girls prefer buying HR product from pharmacy

Go through traditional channelsWining Plan: • Leverage information collected through

Nilesen/ ERP and target traditional stores where India 1 & 1+ goes.

• Also, focus on Pharmacy channel

Channels to Explore: unutilized/underutilized channels• Co-branding: with shoe / fashionable

cloths brands for Venus• Gymnasiums: Tie ups with VLCC, Gold

Gym• SPA chains- Tie up with O2 spa• Activities at mall: Ramp walk etc • Washrooms of premium malls • With college contact programmes of

whisperWining Plan: • Co-branding with fashion brands• Tie ups with Gym & SPA chain to promote Venus

In store Strategy

• Insight: Women find it embracing to shop for razor in front of all• No Separate Shelf: As girls will hesitate going there, place

NEAR BEAUTY-GROOMING category, with Backlit to provide premium look and grab attention

Wobbler Brand Header Brand Divider Education hot spot

• Use Analytic Dashboards to monitor business and gaps• Different metrics in a single

consolidated view• Roll up details into high-level depth• Timeframe of analysis can be easily

selected: Hour/day/week/month

Analytical solutions for monitoring

Technological breakthrough for Go to market

• A point-of-sale software + low cost Smartphone/tablet + attached external barcode reader + sync with P&G Server

• Retailer records all transaction a smartphone/tab - synchronize wirelessly with P&G servers to get accurately notified : Demand Side data

• Similar exercise done by Tiendatek in South America

Go To Market StrategyMarketing Mix Supply ChainHR Industry Landscape

Sourcing from foreign plant 1) Import duty structure in India for beauty category

2) Transportation cost 3) Government Regulation Pros – Good Quality

Manufacturing locally 1) Flexible assembly line / availability of infrastructure in current plant 2) Technological know how 3) Raw material availability Pros - Flexibility Changes according to local needs

1)Marginal cost of production in foreign country > Marginal cost of production locallyAs it involves custom duty and Transportation

So in long run go for local manufacture only

When to start 2) Considering 3 year breakeven target Calculate

Fixed cost /( Prize –MC ) = No of units to be sold If this turns out to be lesser than demand forecast for next 3 years

1) Plant (either of Bhiwadi, Alwar & Baddi, Himachal) has expansion capacity2)10 crore assembly line cost3) 35% contribution margin on both blade and cartridge 4) Technological know-how in place5) Raw material cost and labour cost almost same in Mexico and India6) Break even target 3 years7) Transportation cost is not considered (varies with weight)

2014 2015 2016

No. of Razors 832853.236 1438906.11 2203062.899No of cartridge packs 2498559.71 4316718.32 6609188.696

Year 1 Year 2 Year 3

Profit through sales 450656886.1 778592094.8 1192077335

Customs Duty paid 345074415.6 596179089.7 912790644.7

Margin after Reducing Customs Duty paid from profit through sales

105582470.4 182413005.1 279286689.8

Based on no of razor and cartridge pack, in coming 3 years total customs paid will be 180 Cr. ( 26.84% import tax on cosmetics, ref: Report on India Cosmetic Imports and regulatory aspect)

Disclaimer *• Considering sales volume are being

achieved• Calculations to be modified as per

realized sales

Major Costs Inflection point decision Assumptions

Cumulative Profit Next 3 years Appx.240 crores

Considering the 10%, 15% and 20% market share in Depilatory category

Analysis

Manufacture Locally

Supply ChainMarketing Mix Go To Market StrategyHR Industry Landscape

Survey Results : No of Respondents 32 , Age Group 22-28Leg : Hair Removal

17%

33%

50%

Leg : Hair RemovalRazor Cream Waxes

40%

50%

10%

Underarms: Hair RemovalRazor Cream Waxes

52%45%

3%

Bikini Line : Hair RemovalRazor Cream Waxes

25%

9%66%

Hand : Hair RemovalRazor Cream Waxes

Preference of Women Towards Different Hair Removing Techniques

Appendix : Hair Removing Techniques

50%

15%

30%

5%

Why NO to waxing?Sensitive Skin Time ConsumingPainful Messy method

60%25%

15%

Why NO to Cream?Dark Patches Faster Regrowth Smell

65%

25%

10%

Why NO to Shaving?Thick and Dark Hair Faster Regrowth Dry& Dark Skin

Appendix : Resistance to Hair Removing Techniques

Friends Beautician bloggers other

53

2126

0

24

36 37

3

23

3134

12

Top three influencers1 2 3

Appendix : Influences

Digital Marketing Plan

Appendix : Media Consumption

Media Consumption habits of TG

Digital Media Effective Freq: 4-7+ [FB, Blog,

Forums, twitter, Pinterest] •TG Spends 21% time of online activity on Facebook

•Fashion blogs like styldrv.com and giasaysthat.com

•Follow stylist on Twitter and Pinterest

•Checks review sites to evaluate brand

RadioEffective Freq: 5-8+

•Radio Mirchi (Listenership 478000 in top 6 metros)

•Morning (8-10 AM) and evening (5-7 PM)

•Leverage shows like Hi Delhi, 2 idiots, Total Filmy

Print Effective Freq: 1-2+

• Eng. Magazine: Filmfare and Femina ( readership 16k & 14k respectively)

• Hindi: Meri Saheli (41k), Fimfare Hindi (9k)

• Daily: Times of India & Hindustan Times

24.3% 22% 10%

Friends Beauty Stylist Bloggers

•Opinion leader from college campus

•Free samples/Venus goodies

•Sponsor fashion events in college festivals

•Demonstration on self or others to creates trial in this category

•Mall and Event campaigns

•Prefer personal blogs over magazines as written by people rather than journalists

•Famous blogs – Rynablog, makeup and beauty blog, peaches and blush, etc.

Influencer in HR category

Appendix: Digital Media Consumption by TG

Appendix: Venus Fashion Lounge