Kiehlin It���

Zoe Brook Julia Howe Chloe Reis

Non-negotiables

Values���Heritage���Skincare���

Philanthropy���

Promotions���We Don’t���Show Off���

The Experience���Prescriptive Service���

Approachability���Credibility���Apothecary���

The Product���Natural Ingredients���Serious Skincare���

Science������

TODAY’S SCHEDULE

������

The Market & Industry Trends���

The Consumer���The Competitors���

The Idea���

���

Men’s���Skincare���

Men’s���BB Cream���

Colour���Cosmetics���

Canada

UNITED KINGDOM

South Korea

Stage 1���

Stage 2���

Stage 3���

The Evolution of Men’s Skincare

Innovators        Early  Adopters      Early  Majority            Late  Majority              Laggards        

ADOPTION Evolution of Men’s Skincare

Men’s���Skincare���

Men’s���BB Cream���

Colour���Cosmetics���

White Eagle Shaving Cream���Facial Fuel Energizing Wash���Facial Fuel Moisturizer���Facial Fuel Moisturizer 15���Ultimate Man Body Scrub Bar���

Facial Fuel Moisturizer���Facial Fuel Energizing Wash���

Cross-Terrain Face Wash���Facial Fuel Moisturizer 15���

���Facial Fuel Energizing Wash���Facial Fuel Toner���Facial Fuel Lip Balm���Men’s Alcohol Free Toner���Facial Fuel Moisturizer���

Canada

UK

Asia

Kiehl’s Best Sellers By geography

Global Men’s Grooming Real Growth

2% CAGR���$761 M���2016���

Men’s Grooming in Canada

2007-2012

20.9  

10.8   9.5  

25.8  

15.9  19.9  

12.1  16.7  

53.3  

19.2  

0  

10  

20  

30  

40  

50  

60  

3.8   6.1   4.4   3.3  7.4  

17.5  

2.4  

9.9  

39.6  

4.9  

0  5  

10  15  20  25  30  35  40  45  

Men’s Grooming in Canada 2012-2017

Kiehl’s Distribution trend canada

Characteristics of men’s Distribution Channels

“A man wants to be able to get his shopping done quickly and doesn’t want to have to walk through dozens of metres of perfume and makeup counters to do so.”���

-Alix Box, VP Retail, Holt Renfrew���

Distribution trend: toronto case

Male-specific grooming stores��� Male-oriented retail spaces���

���

The customer

26…35

>$85,000 Trendy triers + Affluent

adopters

The cult effect

25% Total sales >8% cagr

Retain + grow

The customer

21…25 >$45,000 Active

aspirationals

female influence + Shops in groups

5%

Total sales >6% cagr

Acquire + educate

The customer

36…65 >$100,000 Proactive

Professionals + Prudent practicals

Anti aging + sunscreen

5%

Total sales >3% cagr

Increase wallet share

entry points

Enter the workforce

Marriage/ cohabitation

Signs of aging

Divorce/late Dating game

one two

three four

Influences on purchasing habits

Aging population

Later marriage Metrosexual

Ubersexual

The mans choice

Family, friends + ���professionals���

90% make all/most���decisions���

Significant Others/���Partners���

Self realization/���Acne/Career/Aging���

Barriers to Purchase + Creating daily Regime

Grooming + + Hair care…65% Deodorant…86% Shaving…46%

Skincare + -

83%...Who needs it?

42%... Occasion 27%... Not Manly

Look good =

Do good =

succeed

Purchase motivation

The road to routine

Purchase of Skin Care Product���=���

30% use several times/week���= ���

60% use several times/day���

competition

 

0  

5  

10  

15  

20  

25  

Clinique Kiehl's Biotherm

%  M

arket  S

hare  (N

orth  America)  

Market Share and Ranking North America

1st 3rd 4th��� ���

3 2 1 Perception of prestige

Canada

������

Biotherm ���

������

Clinique���

������

Kiehl’s ���

4Ps

PROMOTION

Message European���Prestige���

Tech���media���

Advertising���Social Media���

Promotions (coupons)���

Message: Simplicity “3 step”���

Skincare���Trustworthy���

MEDIA Advertising���

Social Media���Direct Selling (mail) ���

���

Message Philanthropy���

Skincare���Heritage���MEDIA���

Featured stories���Social media���

WOM���

promotions map approachable

Rational appeal

Emotional appeal

aspirational

Digital strategy

biotherm clinique Kiehl’s

x

x

y x x

x

www. x

*specifically men’s page

70.4% of male web users stream video

pricing

Moisturizers Range $/mL

Biotherm $30-55 0.4 - 1

Clinique $24-37 0.3 – 0.7

Kiehl’s $24-47 0.2 – 0.5

For cleansers, the cost per mL is $0.2/mL

Product

Scientific heritage���

Pure thermal plankton technology

Hypoallergenic and 100% Fragrance Free

Natural ingredients

Scientific expertise

targeted general

Product positioning

distribution

Brick + mortar

Dept. stores

Pharm/drug

www.

Kiehl’s x x x

clinique x x x

biotherm x x x

0  

10000  

20000  

30000  

40000  

50000  

60000  

18-­‐24   25-­‐34   35-­‐49   50-­‐64  

Male Clinique users in Canada 2011-2013

cleanser  

moisturizer  

0  

10000  

20000  

30000  

40000  

50000  

60000  

18-­‐24   25-­‐34   35-­‐49   50-­‐64  

Male Biotherm users in Canada 2011-2013

cleanser  

mointurizer  

0  

10000  

20000  

30000  

40000  

50000  

60000  

70000  

80000  

90000  

18-­‐24   25-­‐34   35-­‐49   50-­‐64  

Total male users by age group amongst our 2 competitors in Canada

cleanser  

moisturizer  

Future projections

Men’s���Skincare���

Men’s���BB Cream���

Colour���Cosmetics���

MEN’S Spas and salons

Specialty men’s stores

Department stores

Canada

UNITED KINGDOM

South Korea

Stage 1���

Stage 2���

Stage 3���

o  Not Industry Leader���o  Low Awareness only 1% (unaided

awareness) for facial skincare���o  Lower Market-share���o  Digital presence not tailored to

men���

o  Cult Identity���o  Exceptional Brand Loyalty,

WOM���o  Strong and Consistent Image���o  Brick + Mortar Stores���o  Strong value pricing���

S W

o  Brick and Mortar stores provide control that creates opportunity to provide differentiated customer experience.���

o  Immigration into Canada���o  Target 21-25 for increased

CLV���

O o  Market for anti-aging products is saturating���

o  Growth of Niche Competitors on e-commerce���

o  Skepticism and perceived lack of need���

T

SWOT ANALYSIS

THE IDEA

Who?

Active aspirationals

Affluent adopters/ Trendy triers

Polished professionals

acquire

maintain

grow

What? ���

DRIVE TRIAL AND ADOPTION BY

TARGET SEGMENTS���

���FOLLOW GLOBAL ���

SKINCARE EVOLUTION���

STAY TRUE TO BRAND VALUES���

+���HEALTHIER SKIN���

GUARANTEED���

���DRIVE TARGET INTO KHIEL’S

STORES ������

1 4 3 2 ���

NEW���ONLINE MALE SPACE ���

THE ROLL-OUT ���

NEW COMMS

STRATEGY���

������

NEW STORE CONCEPT ���

���NEW

PRODUCT LINE

“TOOLKIT”���

JUDGES, THANK YOU. - CHLOE, JULIA AND ZOE.