Sales Management | March 19th 2013 0

WELCOME!

Venus & Olay launch in Gamma stores Msc Sales Management

Basmah Abdulkarim, Kata Gyarmati, Jan-Philipp Lembke, Jessica Sgarlata

Sales Management | March 19th 2013 1

Agenda

What is the

Current

Situation?

What is our

Idea?

How does it

Work?

What are the

Benefits?

What are the

Next Steps?

Sales Management | March 19th 2013 2

Situation and our Conclusions

Shaving trends in Germany Consumers‘ Decision Drivers Growth Driver

Innovation is key for

category growth

Leverage these Decision

Drivers at POS Win new customers

2005

2006

2007

2008

2009

2010

2011

+33%

Revenue growth

1 Fragrance

2 Color

3 Variety

4 Something New

5 Quickness

Women want... Of all women..

~50% shave their body

hair

Shave 11 times a

month

~33% include it in

regular body and

beauty care

Use 10 blades a year

Sales Management | March 19th 2013 3

Agenda

What is the

Current

Situation?

What is our

Idea?

How does it

Work?

What are the

Benefits?

What are the

Next Steps?

Sales Management | March 19th 2013

2 Categories

2 Brands

2 Strengths

4

Product Innovation

Best Shaving

through Embrance

5-blades

technology

Improved 2-in-1

Solution

Skin care through

Olay ingredients

Female Wet

Grooming Skin Care

Sales Management | March 19th 2013 5

The Idea

Achieving category growth in female grooming through changed behavior and in skin care

through target group transfer effects.

Today Future

“Shaving is only a function to remove

unwanted hair which stresses my skin”

“With Venus & Olay, shaving becomes

the foundation of my daily Skin Care.”

Sales Management | March 19th 2013 6

Agenda

What is the

Current

Situation?

What is our

Idea?

How does it

Work?

What are the

Benefits?

What are the

Next Steps?

Sales Management | March 19th 2013 7

Where will V&O Consumers Come from? (See Excel Sheet 2)

• Quattro for Women (-2%)

• Intuition (-2%)

• Venus for Women (-10%)

• Venus Breeze (-15%)

• Venus Embrace (-10%)

• Protector Lady Plus (-2%)

• Intuituin Plus Hydra Soft (-2%)

• Senior Excel for Women (-2%)

• Venus Embrace (-5%)

• Intuition Melon Fresh (-2%)

• Protector Lady Swing (-2%)

Cannibalisation Olay Consumers Market Growth

104M Units 70M Units 31M Units

3M Units

5% (expected 2013)

Currently only 4% of

consumers buy both

brands.

Profit margins for V&O

are, however, extremely

outstanding.

Sales Management | March 19th 2013 8

Budget focus on Displays and Mailings

ID Measure Quantity Price TOTAL Hyper SuperNumberof

StoresTOTAL

1 FullPageAdintheCustomerMagazine 0 25.000,00€-€ -€

2 FullPageintheEmployeeMagazine 0 5.000,00€-€ -€

3 SalesLadiesperDay 1 150,00€150,00€ 0 0 0 -€

4 AdvertisingBanneronGammaHomepageintheInternet 1 3.000,00€ 3.000,00€ 3.000,00€

5 Information/EducationFolderforStorePersonnel 1 18,00€18,00€ 0 0 0 -€

6 Information/EducationCardwithVenusVibranceDemoFolderwithLineUpExplanation 1 3,00€ 3,00€ 0 0 0 -€

7 Mailings:per100MMultiBrandMailingstoGammaCardHolders 1,7 10.000,00€17.000,00€ 0 17.000,00€

9 1/4ChepDisplaywith30Shaversand30Blades 1 35,00€35,00€ 1500 1500 52.500,00€

10 1/2ChepDisplaywith60Shaversand55Blades 1 55,00€55,00€ 500 0 500 27.500,00€

11 PermanentDisplay 1 120,00€120,00€ 0 0 0 -€

12 Feautre:incl.Preisabschlag 0 50.000,00€-€ 0 -€

100.000,00€

Budget 100.000,00€

Budget (Excel Sheet 1)

Measure Quantity Hyper Super Total

Internet Banner on

Gamma Store

Homepage

Mailings: per 100M

Card Holder

¼ Chep Display with

30 Shavers and 30

Blades

½ Chep Display with

60 Shavers and 55

Blades

1

1.7

500

1500

3.000€

17.000€

52.500€

27.500€

100.000€

Sales Management | March 19th 2013 9

Display Type #1

1 Fragrance

2 Color

3 Variety

4 Something New

5 Quickness

Display #1 Based on

Consumers‘ Decision

Drivers

4 Clear „NEW“ communication

2 Glimmering Gold

3 Quick Information on Display

(Innovation on Information)

1 Fragrance Dispenser

5 Small Flyer

Information Holder

Sales Management | March 19th 2013 10

Display Type #2

Display #2 to target

the Olay-only users

Communicating Venus

at the Olay Shelf

Small amount of

Venus raisers

displayed

Sales Management | March 19th 2013 11

Display Type #3

Display #3 V&O and

Olay Essentials Sister

Display

Places the two brands‘

products close to each

other

Optional product-

bundling offer

Sales Management | March 19th 2013 12

Agenda

What is the

Current

Situation?

What is our

Idea?

How does it

Work?

What are the

Benefits?

What are the

Next Steps?

Sales Management | March 19th 2013 13

What are your Benefits

Display #3 V&O and Olay

Essentials Sister Display

Display #2 to target the Olay-

only users

Display #1 Based on

Consumers‘ Decision Drivers

High expected Sales for

V&O

New Customers to Female

Grooming Category Cross-Category Growth

Sales Management | March 19th 2013 14

Agenda

What is the

Current

Situation?

What is our

Idea?

How does it

Work?

What are the

Benefits?

What are the

Next Steps?

Sales Management | March 19th 2013 15

Rebates 2013

Profit Margin (Excel Sheet 3)

FIXED FIXED

Name 2012 Name 2013 VenusBreeze Venus&Olay VenusBreeze Venus&Olay

8,82 10,44 8,98 11,45

RebateA 4,20% SpecialPartnerRebate 4,20% 0,3704 0,4385 0,3772 0,4809

RebateB 2,00% Long-termRelationshipRebate(+0,2%peryear) 2,20% 0,1764 0,2297 0,1796 0,2519

RebateC 5,00% ShelfDominanceComparedtoWilkinson 4,00% 0,4410 0,4176 0,4490 0,4580

RebateD>160.000 5,00% Quantity>100.000 3,00% 0,4410 0,3132 0,4490 0,3435

=InvoicePrice EUR 7,3912 9,0410 7,5252 9,9157

RebateE 5,00% SkontoI 5,00% 0,4410 0,5220 0,4490 0,5725

RebateF 3,30% SkontoII 3,30% 0,2911 0,3445 0,2963 0,3779

=Net/netPrice EUR 6,6591 8,1745 6,7799 8,9654

RSP EUR 9,95 12,99 10,95 14,99

TradeProfit EUR 1,7022 2,7414 2,4218 3,6313

Marginearned % 20,4% 25,1% 26,3% 28,8%

Razors Blades

Rebate Type 2013

Special Partner Rebate 4,20%

Long-term Relationship Rebate (+0,2% per year) 2,20%

Shelf Dominance Compared to Wilkinson 4,00%

Quantity >100.000 3,00%

= Invoice Price EUR

Skonto I 5,00%

Skonto II 3,30%

= Net/net Price EUR

Sales Management | March 19th 2013 16

Profit Margin 2013

Profit Margin (Excel Sheet 3)

FIXED FIXED

Name 2012 Name 2013 VenusBreeze Venus&Olay VenusBreeze Venus&Olay

8,82 10,44 8,98 11,45

RebateA 4,20% SpecialPartnerRebate 4,20% 0,3704 0,4385 0,3772 0,4809

RebateB 2,00% Long-termRelationshipRebate(+0,2%peryear) 2,20% 0,1764 0,2297 0,1796 0,2519

RebateC 5,00% ShelfDominanceComparedtoWilkinson 4,00% 0,4410 0,4176 0,4490 0,4580

RebateD>160.000 5,00% Quantity>100.000 3,00% 0,4410 0,3132 0,4490 0,3435

=InvoicePrice EUR 7,3912 9,0410 7,5252 9,9157

RebateE 5,00% SkontoI 5,00% 0,4410 0,5220 0,4490 0,5725

RebateF 3,30% SkontoII 3,30% 0,2911 0,3445 0,2963 0,3779

=Net/netPrice EUR 6,6591 8,1745 6,7799 8,9654

RSP EUR 9,95 12,99 10,95 14,99

TradeProfit EUR 1,7022 2,7414 2,4218 3,6313

Marginearned % 20,4% 25,1% 26,3% 28,8%

Razors Blades

Razors Blades

Venus Breeze Venus&Olay Venus Breeze Venus&Olay

8,82 10,44 8,98 11,45

0,3704 0,4385 0,3772 0,4809

0,1764 0,2297 0,1796 0,2519

0,4410 0,4176 0,4490 0,4580

0,4410 0,3132 0,4490 0,3435

7,3912 9,0410 7,5252 9,9157

0,4410 0,5220 0,4490 0,5725

0,2911 0,3445 0,2963 0,3779

6,6591 8,1745 6,7799 8,9654

9,95 12,99 10,95 14,99

1,7022 2,7414 2,4218 3,6313

20,4% 25,1% 26,3% 28,8%

Sales Management | March 19th 2013 17

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