SIP_ SHAUNAK SARDESSAI.pdf

1

MAPPING BOROPLUS AGAINST VASELINE IN

GLOBAL MARKET

SUMMER INTERNSHIP REPORT 2012

INTERNSHIP REPORT AT

EMAMI LTD. KOLKATA

UNDER GUIDANCE OF MR. BRAJESH KUMAR

PREPARED BY:

SHAUNAK MILIND SARDESSAI PGPM

20110335

21ST SEPTEMBER 2012

2

ACKNOWLEDGEMENT

It has been rightly said that we are built on the shoulders of others but the satisfaction that

accompanies the successful completion of any project would be incomplete without the

mention of the people who made it possible.

I would first of all like to thank Emami Limited for giving me this opportunity to learn, share

my ideas, views, and thoughts on various subjects through this project, undertaken as a part

of curriculum requirements.

I am highly indebted to my project guide Mr. Brajesh Kumar – General Manager Marketing

(SAARC, SEA & EUROPE), for giving me an opportunity to work with him. Without his adroit

guidance, constant support and inspiration this project would have not been possible. The

value addition that I derived under his guidance by means of various side activities such as

sharing learning’s by presentations, facilitating surveys etc. has culminated in a life-long

valuable experience.

I would like to acknowledge the contribution of Mr. Devanshu Seth, International Brand

Manager, for his valuable inputs in completing the project. The ideas shared by Mr. Mridul

Greenwold, Asst. Brand Manager, have also helped me tremendously in driving my project

through its journey.

I would also like to express my gratitude towards my Faculty Guide, Mr. Anup Awasthi for

his constant support and guidance.

Finally, I would like to express my gratitude towards all individuals of Emami Limited,

Kolkata who supported me during the tenure of this project.

3

DECLARATION

I hereby declare that the project entitled “Mapping Boroplus against Vaseline in Global Market” submitted to the India Europe International Business School is a record of an original work done by me, under the guidance of Mr. Brajesh Kumar General Manager Marketing (SAARC, SEA & EUROPE) IMD Emami Ltd.

SIGNATURE

SHAUNAK SARDESSAI

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Contents

ACKNOWLEDGEMENT ................................................................................................................2

DECLARATION .............................................................................................................................3

EXECUTIVE SUMMARY ...............................................................................................................5

INTRODUCTION ...........................................................................................................................6

COMPANY ANALYSIS ............................................................................................................... 10

INDUSTRY ANALYSIS ............................................................................................................... 13

COMPARITIVE ANALYSIS ....................................................................................................... 43

CONCLUSION AND RECOMMENDATION ............................................................................. 50

LEARNINGS ................................................................................................................................ 51

REFERENCES .............................................................................................................................. 52

5

EXECUTIVE SUMMARY

Emami Ltd. has established its presence internationally through its International Marketing

Division (IMD) in GCC (Gulf Cooperation Council) region, CIS (Commonwealth of

Independent States) countries & South East Asia marketing its well-known brands such as

Fair & Handsome, Himani Navratna Oil, Himani Fast Relief, etc.

The company plans to leverage its existing distribution network in these countries to expand

the BoroPlus brand in these regions.

The body care market is substantial, but growth has been weak in the major markets.

Innovation has been a means by which market players have aimed to encourage growth,

along with addressing key consumer trends such as the preference for natural ingredients.

In addition, marketers have attempted to get more men interested in body skincare

products through the launch of new products and masculine styles of marketing. Vaseline a

Unilever product has gained a leading share in the skincare market by focusing on

consumers' dry skin problems, making it a fifth leading global brand for body care. The

brand is marketed to a wide demographic, while emphasizing everyday usage.

Thus making Vaseline an important brand to be benchmarked for mapping Boroplus in the

focus and opportunity countries/markets.

6

INTRODUCTION

OVERVIEW

Emami Limited is a leading FMCG company. Its power brands are Boroplus, Fast Relief, Fair

and Handsome, Zandu Balm and Navratna Oil as they contribute the maximum to its top line

(close to 90%). The project deals with analyzing these power brands and identifying the key

markets in which they can be offered.

The company has a National Marketing Division, which looks after the operations in India,

and an International Marketing Division (IMD), which caters to countries around the world.

Emami‟s IMD has a pre-defined list of Focus countries in which it is doing business or aspires

to do business. The project is about analyzing these markets with respect to the categories,

i.e. Men‟s Skin Care, Topical Analgesics, General Purpose Body Care and Facial Care, in

which the Company offers products. Prioritization of markets where the Company should

cater first is the need of this project. This would lead to a more focused approach to

markets. The MENA, SEA and CIS markets have been studied to filter the largest and the

fastest markets by category.

OBJECTIVES

The objectives under the purview of which this research has been conducted are as follows:

Finding out the presence of Vaseline in Focus Countries to Map against Boroplus, in

the similar product range.

THUS;

Comparing the Market Shares of Skin Care in the given markets, also with the Body

Care, Hand Care and Facial Care.

Measuring the market significance for Boroplus in the focus and opportunity markets

and finding out which could be a better market for growth.

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CAVEATS & LIMITATIONS

• All population & demographic data as provided in the data sources were estimates

based on the latest available census data according to CIA Country Factbook.

• Skin care market data has been taken from Euromonitor except for Pakistan whose

data is from Datamonitor, which may be a differentiating factor during the

comparative analysis. Mentioned data sources are to which Emami subscribes.

• The product list of UAE has been taken from www.supermart.ae, so price

differentiations may be noticeable.

• The prices of the products through GNPD Mintel are as per the posted dates; so

differences with actual/current would be noticeable.

• Projected CAGR for Pakistan has been calculated for a period of 2011-15, whereas

for others is calculated for the period 2011-16, due to change in data source.

• Vaseline Body Care product line is similar to that of Boroplus.

• Boroplus Gaps are identified on the basis of Presence on Vaseline against Boroplus.

SCOPE OF RESEARCH

• SECONDARY RESEARCH

Internet Based Research

Mapping Boroplus against Vaseline required study of Vaseline in focus regions of

Emami. Thus, having to do a study of:

Vaseline products in focus regions

Skin Care Market.

Body Care Market

Hand Care Market

Facial/ Lip Care Market

http://www.supermart.ae/

8

The scope of the research covered the presence of Vaseline in the Focus & Opportunity

Markets/ Countries and study it’s products.

Focus Markets Vaseline

Presence

Scope Of

Research

United Arab Emirates (UAE) Yes Yes

Saudi Arabia (KSA) Yes Yes

Egypt Yes Yes

Bangladesh Yes No

Nepal Yes No

Russia No No

Opportunity Markets Vaseline

Presence

Scope Of Research

Vietnam Yes Yes

Poland No No

Pakistan Yes Yes

Bangladesh and Nepal are not included in the research due to unavailability of proper data,

similarly Russia and Poland are excluded due to absence of Vaseline in those markets.

9

METHODOLOGY

Step 1: Focus/ Opportunity Countries were selected as per the parameters set by Emami

Ltd. some of which are accessibility, reach, acceptance, etc.

Step 2: The selected countries were then again given rankings based on their Ratings for the

respective segment( Skin Care, Body Care, Hand Care and Face/Lip Care). Ratings were given

on the following parameters: population, population growth rate, Gini Index, market size,

GDP per capita, Market Size, CAGR 2006-11, CAGR 2011-16, Ease of doing business rankings,

Per Capita consumption and Herfindahl Index.

Step 3: All the countries were then tabulated on cumulative basis by category and the top

countries among all the categories were short listed to prioritize the markets.

DATA COLLECTION

In order to achieve the objectives of the study, both primary and secondary sources of

information have been used. The details of the sources from where data has been collected

are given below:

Primary Source: Information related to the business pattern of the company and the

objectives of the company were been learnt from Mr. Brajesh Kumar – General Manager

Marketing (SAARC, SEA & EUROPE) and other members of the International Marketing

Division (IMD) of Emami.

Secondary Sources: Most of the figures that have been used in the project have been mined

from www.euromonitor.com, www.datamonitor.com & GNPD Mintel. Data related to

presence in various countries was taken from some excel files provided to me by employees

of Emami Limited.

http://www.euromonitor.com/

http://www.datamonitor.com/

10

COMPANY ANALYSIS Overview

The Emami Group is a huge conglomerate with its presence in a number of categories in

India and abroad. The group‟s turnover is around 3700 crores. The group has a gross

revenue of over Rs 1200 crores in FY 2011 with a CAGR of 26% over last 5 years.

The different companies under the Emami umbrella are:

1. Emami Paper Mills Ltd.

2. Emami Chisel Art

3. CRI Ltd.

4. South City Projects (Kolkata) Ltd.

5. Advanced Medicare & Research Institute Ltd. (AMRI)

6. Emami Frank Ross Ltd.

7. Emami Infrastructure Ltd.

8. Starmark

9. Emami Biotech Ltd.

10. Emami Cement Ltd.

Vision of the Company

Making people HEALTHY and beautiful NATURALLY.

Mission of the Company

To contribute whole heartedly towards the environment and society integrating all

our stakeholders into the Emami family

To make Emami synonymous with natural beauty and health in the consumers mind

To effectively manage talents by building a learning organization

To strengthen and foster in the employees, strong emotive feelings of oneness with

the company through commitment to their future

To drive growth through quality and innovation in products and services

To uphold the principles of corporate governance

To encourage decision making ability at all levels of the organization

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Company’s Core Values

Commitment & Loyalty to institutional values and principles

Integrity

Customer Orientation

Leadership and Innovation

Attention to detail

Teamwork & Team Environment

Simple living, High thinking

Social Responsibility

Environmental Safety

Some path breaking strategies of Emami

Aggressive promotion through celebrities

Expand distribution to reach rural

Differentiated “Value for Money” products

Product Innovation to enter new categories

Brand Extension

Entry in new geographies to drive exports

Leveraging existing distribution network

Product Innovation being the Core of the Business

Emami has always believed in differentiating itself from the others by keeping innovation at

the core of doing business. It has created whole new categories like the men‟s skin

whitening and cooling hair oil. Innovation pays Emami very well as it is the leader in both

these categories.

Brand Extension is one of the Key Strategies of Emami Ltd.

The company extensively follows brand extension strategy. We can clearly see this in

products like Navratna Hair Oil and Navratna Cool Talc. Fair and Handsome has entered

different segments like FAH24 Fairness Cream, FAH Advanced Whitening After Shave Balm,

FAH Whitening Refreshing Face Wash, FAH Whitening Regenerating Face Scrub, FAH

Whitening Day Long Moisturizer and FAH Advanced Whitening Firming Face Wash. Even

Zandu Balm and Boroplus have similar examples.

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Emami’s Global expedition

Emami‟s international business contributes around 14% to the top line and has been

growing at a CAGR of 34% over the last 5 years. With growing international focus, its exports

have risen from Rs.137 crore in 2009-10 to Rs.174 crore in 2010-11.

“Currently Emami is marketing its personal care and health care products in these markets

primarily through distributors. Our main exposure to these markets is through distributors.

We are now looking at increasing our penetration in these markets by strengthening our

own infrastructure and building an efficient marketing team.”26

With its Head Office in Kolkata, Emami has global regional offices in London(UK),

Moscow(Russia), Dubai(UAE) and Singapore to take care of the sales and marketing in their

respective regions. The company has a presence in 65 countries and plans to set up

manufacturing units in Dhaka(Bangladesh) and Cairo(Egypt) are in process to meet the rising

demands of the region. This will help in cutting down costs to a great extent. Emami Limited

has primarily 3 overseas subsidiaries in Bangladesh, Dubai and UK.

13

INDUSTRY ANALYSIS

Analysis is done with respect to the data in accordance to the countries that are Focus /

Opportunity Markets for Emami, which were selected as per the parameters set by Emami

Ltd. some of which are accessibility, reach, acceptance, etc.

The research was done keeping in mind the availability of Vaseline products as against

Boroplus.

Following would be the Country wise analysis of Industry segments which are, Skin Care

Body Care, Hand Care, Face/Lip Care.

List of Focus Countries

UNITED ARAB EMIRATES

SAUDI ARABIA

EGYPT

List of Opportunity Countries

VIETNAM

PAKISTAN

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UNITED ARAB EMIRATES (UAE)

COUNTRY SNAPSHOT

Location

Middle East, bordering the Gulf of Oman and the Persian Gulf, between Oman and Saudi Arabia

Land Boundaries: 867 km

Border Countries: Oman 410 km, Saudi Arabia 457 km

Languages: Arabic (official), Persian, English, Hindi & Urdu

Population: 5,314,317 (July 2012 est.)

Age structure:

0-14 years: 20.4% (male 537,925/female 513,572)

15-64 years: 78.7% (male 2,968,958/female 1,080,717)

65 years and over: 0.9% (male 30,446/female 17,046)

Religion: Muslim 96% (Shia 16%), Other (includes Christian, Hindu) 4%

Economic Snapshot

GDP (purchasing power parity): $260.8 billion (2011 est.)

GDP - per capita (PPP): $48,500 (2011 est.)

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Boroplus against Vaseline: Identified Gaps of presence in UAE

VASELINE BOROPLUS GAPS

Aloe cool & fresh cream

Healthy hand & nail cream

Total Moisture Lotion

Petroleum jelly

Prickly Heat

Powder

Body Moisturizer

Hand & Nail cream

Petroleum Jelly

SKIN CARE MARKET IN UNITED ARAB EMIRATES

HEADLINES

Skin care posts compounded annual growth rate of 11.8% for a period of 2006-11

In addition to climactic factors, skin care benefits from the opening of branded beauty salons

Facial Care remains the dynamic sector with a growth rate of 14.3% for the period of 2006-

11, and also projected to decrease in the period of 2011-16 to ~8%

Projected CAGR as per Euromonitor for a period of 2011-16 would decrease to 7.4%

TRENDS

Trends in 2011 have revolved around new product launches and an expanding retail

environment. Branded beauty salons and specialised beauty retailers have expanded into

their own mall-based stores. Considering the products, product innovation remained skin

care’s regular trend, with new launches, from the main leaders Beiersdorf and Johnson &

Johnson, who are focusing on expanding the anti-aging and antiwrinkle cream markets.

Skin care posts a compounded annual growth rate of 11.8% for a period of 2006-11, as in

the below mentioned graph valuing 125 $mn.

The key demand driver for skin care

remains the weather. The extremely

hot climate and the drying,

dehydrating effects of constant air

conditioning throughout the hot

summer months in the United Arab

Emirates sustains strong demand for

nourishing and soothing skin

products to counter the negative

effects of these harsh environments.

0

20

40

60

80

100

120

140

160

180

2006 2007 2008 2009 2010 2011 2016

71.7 84.0

96.8 106.8

115.5 125.0

178.9

$ m

n

16

Facial Care remains

the dynamic sector

with a growth rate of

14.3% for the period

of 2006-11, and also

projected to

decrease in the

period of 2011-16 to

~8%.

Facial care fared so well largely because women were unwilling to compromise on products

they use on their face and continued to look for better, more effective products, particularly

with age-defying and, increasingly, whitening properties.

In light of the beauty salon culture in the United Arab Emirates, beauty salons offer a range

of natural facial treatments, which

act as product alternatives to

regular skin care products. These

treatments mostly include natural

ingredients like honey, almond and

yoghurt, to name a few.

Skin-whitening skin care products

are available on the shelf, mostly

from standard brands like Unilever.

Competition level is high considering the top five companies account for ~58%, whereas the

others(excluding the top 10 companies) account for ~39% share.

Beiersdorf is the market leader with 18%

market share, closely followed by Unilever

with 14%

Nivea brand is the market leader with

18% market share as against Vaseline

which has a 8% market share also lower

than Olay (13%)

Product launches were numerous as

manufacturers battled to develop new product markets, particularly in nourishers and anti-

agers (Euromonitor)

0

20

40

60

80

100

120

140

160

180

2006 2007 2008 2009 2010 2011 2016

32.5 36.6 40.4 43.6 46.4 49.4 68.4

36.7 44.7

53.3 59.8 65.4

71.6

105.0

2.5 2.8

3.1 3.4

3.6 3.9

5.6

$ m

n Hand Care

Facial Care

Body Care

Beiersdorf , 22.3, 18%

Unilever, 17.5, 14%

P&G, 15.6, 13%

L'Oréal, 13.4, 11%

Estée Lauder, 2.9,

2% J&J, 2.9, 2% Avon, 1.1,

1%

Montagne Jeunesse,

0.5, 0% LVMH, 0.4,

0%

Dana Classic Fragrances,

0.3, 0%

Others, 48.0, 39%

Company Shares $mn

Nivea, 22.3, 18% Olay,

15.6, 13%

Vaseline, 10.4, 8%

L'Oréal Paris, 8.9,

7%

Dove, 6.5, 5%

Lancôme, 3.8, 3%

Clinique, 2.0, 2%

Clean & Clear, 1.5,

1%

Neutrogena, 1.4,

1%

Avon, 1.1, 1%

Others, 51.5, 41%

Brand Shares $mn

17

Skin Care Distribution Pattern in UAE

Hypermarkets are rated as the best option to place skin care products in an organised market like

UAE.

Now let us have a look at the segments individually in the form of Body Care and hand Care. Facial/

Lip Care is not looked upon due to a negligible market share.

BODY CARE MARKET IN UNITED ARAB EMIRATES

Body Care Market in UAE is worth 49.4 $mn as on 2011, recording CAGR of 8.7% for a period

from 2006-11

Projected growth rate for a

period of 2011-16 is 6.7%

Moisturisers, Hydrating Lotions

and skin creams are the common

products in this category.

SKIN CARE

Grocery Retailer (64%)

Supermarket

(18.4%)

Hypermarkets (45.1%)

Other (0.5%)

Non-grocery retailers (34%)

Health & Beauty

Retailers (26.8%)

Mixed retailers (7.2%)

Direct Selling (2%)

0

10

20

30

40

50

60

70

2006 2007 2008 2009 2010 2011 2016

32.5 36.6

40.4 43.6 46.4

49.4

68.4

$ m

n

18

Body Care Market in UAE is

captured by the top two

companies approx. covering

around 54% market share.

Unilever is the market leader with

29% market share considering it

has two brands in this category,

closely followed by Beiersdorf with

25%.

Vaseline covers 20% market share, having a 10.1 $ mn market worth in this segment, just

behind Nivea covering 25% market

share.

Dove, also a Unilever product

accounts a market share of 8%,

closely following Vaseline.

HAND CARE MARKET IN UNITED ARAB EMIRATES

Hand Care Market in UAE is on a steady

growth, with CAGR of 9.3% for a period

from 2006-11

Projected growth rate for a period of

2011-16 is 7.5% which is worth 5.6 $mn.

Products of age-defying and, increasingly,

whitening properties are the products

companies look to bring in.

Unilever, 14.2, 29%

Beiersdorf, 12.5, 25%

L'Oréal, 2.1, 4%

LVMH, 0.4, 1%

Dana Classic, 0.3, 1%

Clarins SA, 0.2, 0%

Avon , 0.1, 0%

Others, 19.7, 40%

Company Shares $mn

Nivea, 12.5, 25%

Vaseline, 10.1, 20% Dove,

4.1, 8%

Lancôme, 1.3, 3%

The Body Shop, 0.8, 2%

Christian Dior, 0.4, 1%

Dana, 0.3, 1%

Clarins, 0.2, 0%

Avon, 0.1, 0%

La Prairie, 0.1, 0%

Others, 19.7, 40%

Brand Shares $mn

0

1

2

3

4

5

6

2006 2007 2008 2009 2010 2011 2016

2.5 2.8

3.1 3.4 3.6

3.9

5.6

$ m

n

19

Hand Care Market in UAE is very

small and not so competitive,

with very less no. of players

P&G is the market leader with

20% market share, closely

followed by Beiersdorf with 18%

and Unilever constitutes 8%.

As per the company shares

P&G product Olay leads the

market share of 20%,

whereas Vaseline has 8%

market share.

P&G, 0.8, 20%

Beiersdorf , 0.7, 18%

Unilever , 0.3, 8%

Himalaya Drug , 0.2,

5%

Avon , 0.1, 3%

Others, 1.8, 46%

Olay, 0.8, 20%

Nivea, 0.7, 18%

Vaseline, 0.3, 8%

Himalaya, 0.2, 5%

Avon, 0.1, 3%

Others, 1.8, 46%

Brand Shares $mn

Company Shares $mn

20

SAUDI ARABIA (KSA)

COUNTRY SNAPSHOT

Location

Middle East, bordering the Persian Gulf and the Red Sea, north of Yemen

Land Boundaries: 4,431 km

Border Countries: Iraq 814 km, Jordan 744 km, Kuwait 222 km, Oman 676 km, Qatar 60 km, UAE 457

km, Yemen 1,458 km

Languages: Arabic (official)


Age structure:



65 years and over: 3% (male 404,269/female 368,456) (2011 est.)

Religion: Muslim 100%

Economic Snapshot



21

Boroplus against Vaseline: Identified Gaps of presence in KSA





Petroleum jelly

Skin Cream

Antiseptic Cream

Advanced Moisturising

Lotion

Prickly Heat Powder

Anti Bacterial Soap

Hand & Nail cream

Cool & Fresh Cream

Petroleum Jelly

SKIN CARE MARKET IN SAUDI ARABIA

HEADLINES

Skin care increases in CAGR for a period of 2011-16 by 9.4%, with a market value of

461.8 $mn

Company activity pushes the shift away from premium brands towards

mass/masstige brands

Facial Care in KSA remained growing at a high rate with a CAGR of 10.5% for the

period of 2006-11

Beiersdorf AG leads skin care in 2011 with a 23% value share

Skin care is set to increase in constant value at a CAGR of 10.5% over the forecast

period.

TRENDS

Premium products remained the key trend in skin care in Saudi Arabia as the

increasing numbers of Saudi women joining the workforce led to rising purchasing

power among the main target audience for skin care.

Skin whitening and anti-agers remained the main drivers of growth in skin care in

Saudi Arabia. The majority of skin care brands are beginning to use anti-ageing

formulas in their composition in both facial care and body care.

22

Current CAGR for a period

of 2006-11 has been 9.4%,

with a market value of 461.8

$mn

Projected CAGR is expected

to be 8.8% as per

Euromonitor for a period of

2011-16.

Facial Care in KSA is also growing at a high rate with a CAGR of 10.5% for the period

of 2006-11

Body Care is growing at

a CAGR of 8.4% and

according to

Euromonitor projection

it is noted to be

growing at the same

rate for a period of

2011-16.

Value growth in skin

care rose to 9% in 2010, commensurate with the 9% current value CAGR registered

over the entire review period. Rising unit prices continued to drive value growth in

skin care to a significant extent during 2010, with the launch of more sophisticated

value added products also pushing unit prices upwards.

The majority of new

product launches in skin

care were concentrated in

facial care as this a very

well established skin care

category in which Saudi

consumers are constantly

looking for innovation.

0

100

200

300

400

500

600

700

800

2006 2007 2008 2009 2010 2011 2016

294.5 323.2 359.4 387.5

421.3 461.8

704.0

$ m

n

0

100

200

300

400

500

600

700

800

2006 2007 2008 2009 2010 2011 2016

151.0 162.3 176.7 190.1 207.0 226.3 338.0

127.5 143.7 163.9 176.5 191.1 209.9

325.5

16.0 17.2

18.9 20.9

23.1 25.6

40.4

$ m

n

Hand Care

Facial Care

Body Care


Unilever , 76.1, 16%

L'Oréal , 71.8, 16%

P&G, 41.2, 9%

Kao, 33.4, 7%

J&J, 30.1, 6%

LVMH, 14.5, 3%

Clarins SA, 8.2, 2%

Chanel SA, 8.1, 2%

Henkel, 8.0, 2%

Others, 64.2, 14%

Company Shares $mn

23

Top five companies almost

cover ~71% market share

Leading the market is

Beiersdorf with 23%

market share followed by

Unilever with 16%, but

having three products in

the segment (Dove,

Vaseline& Fair & Lovely)

Nivea is the market leader with 22% market share, followed by Olay with 9%.

Vaseline constitutes a market share of ~6%, which is also included in the top five

brands, which totals a market share of ~ 51%.

SKIN CARE DISTRIBUTION IN SAUDI ARABIA

Health and Beauty Retailers occupy a major percentage of skin care products being sold in KSA.

SKIN CARE

Grocery Retailer (43.8%)

Supermarket

(19.6%)

Hypermarkets

(13.4%)

Small Grocer

y Retailer

s (9.6%)

Other Grocer

y Retailer

s (1.2%)

Non-grocery retailers (53%)

Health &

Beauty Retailer

s (43.5%)

Mixed retailer

s (7.5%)

Outdoor

Markets

(0.1%)

Other Non-

Grocery

Retailers

(1.9%)

Direct Selling (2%)

Home shopping

(1%)

Internet Retailing

(0.1%)

Nivea, 103.2, 22%

Olay, 39.7, 9%

Jergens, 32.7, 7%

Dove, 30.0, 7%

Vaseline, 25.6, 6%


5%

The Body Shop,

19.9, 4% Lancôme, 19.0, 4%

Johnson's, 10.9, 2%

Fair & Lovely, 9.3,

2%

Others, 147.0, 32%

Brand Shares $mn

24

BODY CARE MARKET IN SAUDI

ARABIA

Body Care Market in KSA is

growing at a CAGR of 8.4%

for a period from 2006-11

Projected growth rate for a

period of 2011-16 is

forecasted to grow at the

same rate

Increasing demand for slimming/firming/anti-cellulite creams. (Euromonitor)

Body Care Market in UAE is lead by Beiersdorf with a market share of 30%, with a

total market value of about 68.1

$mn.

Unilever is also in the top bracket

with 23% market share, collectively

with Beiersdorf having ~53%

market share.

Nivea in the body care segment is

the leader with 30% market share.

Vaseline falls in the top five brands, having a market share of 10% values at 23.3

$mn

0

50

100

150

200

250

300

350

2006 2007 2008 2009 2010 2011 2016

151.0 162.3 176.7 190.1

207.0 226.3

338.0

$ m

n


Unilever, 52.4, 23%

Kao, 31.6, 14%

L'Oréal, 21.3, 10% P&G, 9.8, 4% J&J, 9.6, 4%

Henkel, 6.9, 3% LVMH,

4.3, 2%

Oriflame, 2.6, 1%

Clarins, 2.3, 1%

Others, 17.4, 8%

Nivea, 66.9, 30%

Jergens, 31.4, 14% Dove, 23.8,

11%

Vaseline, 23.3, 10%

The Body Shop, 10.9,

5%

Olay, 9.8, 4%

Johnson's, 7.4, 3%

Crème 21, 6.9, 3%

Lancôme, 5.7, 3%

Glysolid, 5.2, 2%

Others, 35.1, 15%

Brand Shares $mn

Company Shares $mn

25

HAND CARE MARKET IN SAUDI ARABIA

Hand Care Market in KSA

is growing with a CAGR

of 9.9% for a period from

2006-11

According to

Euromonitor, it would be

growing sector with a

projected CAGR of 9.6%

for period 2011-16.

Hand conditioning

lotions, anti agers and hand lotion creams remained the most sought products in

KSA.

Beiersdorf covers almost ~50% of

the hand care market in Saudi

Arabia, followed by Unilever

covering around ~30%, thus

making a duopolistic market.

Nivea with 46% market share is

the market leader with ~ 11.8

$mn market value.

Unilever products Dove is

second, with 17% market

share followed by Vaseline

with 9%.

0

5

10

15

20

25

30

35

40

45

2006 2007 2008 2009 2010 2011 2016

16.0 17.2 18.9

20.9 23.1

25.6

40.4

$ m

n

Beiersdorf, 12.8,

50%

Unilever, 7.6, 30%

Henkel, 1.1, 4%

P&G, 1.1, 4%

Kao, 0.9, 4%

J&J, 0.8, 3%

L'Oréal, 0.7, 3%

Others, 0.5, 2%

Nivea, 11.8, 46%

Dove, 4.3, 17%

Vaseline, 2.3, 9%

Olay, 1.1, 4%

Atrix, 1.0, 4%

Glysolid, 1.0, 4%

Crème 21, 0.9, 3%

Jergens, 0.9, 4%

Neutrogena, 0.8, 3%

The Body Shop, 0.7,

3%

Fa, 0.2, 1%

Others, 0.5, 2%

Company Shares $mn

Brand Shares $mn

26

EGYPT

COUNTRY SNAPSHOT

Location

Northern Africa, bordering the Mediterranean Sea, between Libya and the Gaza Strip, and the Red

Sea north of Sudan, and includes the Asian Sinai Peninsula


Border Countries: Gaza Strip 11 km, Israel 266 km, Libya 1,115 km, Sudan 1,273 km

Languages: Arabic (official), English*, French*

*Understood by educated class


Age structure:



65 years and over: 4.5% (male 1,669,313/female 2,031,016) (2011 est.)

Religion: Muslim (mostly Sunni) 90%, Coptic 9%, Christian 1%

Economic Snapshot



27

Boroplus against Vaseline: Identified Gaps of presence in Egypt





Petroleum jelly

-

Cool & Fresh cream

Hand & Nail cream

Body Moisturizer

Petroleum jelly

SKIN CARE MARKET IN EGYPT

HEADLINES

11.9% Compounded annual growth recorded for the year

Widening range and affordable prices at supermarkets/hypermarkets boost sales in

Egypt

Eva Cosmetic Laboratories is at the top of the market charts with 17% market share in

2011

12.4% value CAGR expected for forecast period 2011-16.

TRENDS

Skin care saw 11.9% current value growth in 2006-11 over the period, with this

representing a stronger growth. This is mainly due to the widening range of skin care

offered by a growing

number of supermarkets/

hypermarkets. Growth

was also encouraged by

the influence of lifestyle

magazines, with these

media channels

encouraging consumers

and especially women to

invest more time in

maintaining youthful and

skin.

0

20

40

60

80

100

120

2006 2007 2008 2009 2010 2011 2016

32.9 35.7 39.8 45.2

52.4 57.7

103.3

$ m

n

28

Projected CAGR as

per Euromonitor for a

period of 2011-16

would increase to

12.4%, indicating an

opportunity to grow.

Hand Care market is

projected to grow

with a current CAGR

of 13.9% for a period of 2006-11 to a CAGR of 15.31%, in a very small market indicating

a high growth in the future.

There was a growing interest in whitening skin care, with many women regarding a pale

and even skin tone as a key element of beauty. These products are mainly available in

facial moisturisers and nourishers/anti-agers. Both international and domestic brands

offer whitening skin care, including products such as Unilever and Eva.

Firming/anti-cellulite body care remained insignificant, these products are typically

offered only in upmarket chemists/pharmacies and beauty specialist retailers in high-

income urban areas and are too expensive

for the majority of consumers.

Top 5 companies account for a total of

~57%, considering there are lot of players

in the market evident in the chart, where

some companies not in top 10 account for

~26% market share

Eva Cosmetic Lab. is the market leader with

17% market share, closely followed by Unilever with 15%

Oriflame with 12% market share is the

leader, closely followed by Eva with

11%.

0

20

40

60

80

100

120

2006 2007 2008 2009 2010 2011 2016

12.1 12.9 14.5 16.9 20.6 23.2

47.3 19.8 21.5 23.8 26.3 29.6 32.2

52.5

1.0 1.3 1.6 1.9 2.1 2.3

3.4

$ m

n Hand Care

Facial Care

Body Care

Eva , 9.6, 17% Unilever,

8.7, 15%

Oriflame, 6.9, 12% J&J, 5.2,

9%

Avon, 3.0, 5% Beiersdorf,

2.7, 5%

Marico, 2.1, 4%

Luna , 1.5, 3%

Clarins , 1.4, 2%

L'Oréal , 1.2, 2%

Others, 15.2, 26%

Company Shares $mn

Oriflame, 6.9, 12%

Eva, 6.5, 11%

Johnson's, 3.7, 6%

Avon, 3.0, 5%

Fair & Lovely, 3.0, 5%

Lux, 2.9, 5%

Dove, 2.3, 4%

Nivea, 2.1, 4%

Fiancée, 2.1, 4%

B-White, 1.6, 3%

Others, 23.6, 41%

Brand Shares $mn

29

SKIN CARE DISTRIBUTION IN EGYPT

Skin Care products are now perceived to have health & beauty benefits, thus having a high

distribution with Health & Beauty Retailers.

BODY CARE MARKET IN EGYPT

Body Care Market in Egypt is growing

at a CAGR of 13.9% for a period from

2006-11

Projected growth rate for a period of

2011-16 is forecasted to grow at a

much higher rate of 15.3%, with the

value being 47.3 $mn, indicating a

market growth.

SKIN CARE


Supermarket

(13.9%)

Hypermarkets (2.1%)

Small Grocery Retailer (11%)

Other Grocery Retailer (0.8%)

Non-grocery retailers (52.7%)

Health &

Beauty Retailers

(48%)

Mixed retailers

(3%)

Outdoor Markets (1.7%)

Direct Selling (19.5%)

0

5

10

15

20

25

30

35

40

45

50

2006 2007 2008 2009 2010 2011 2016

12.1 12.9 14.5 16.9

20.6 23.2

47.3

$ m

n

30

Body Care Market in UAE is majorly covered

by the top five companies totalling to ~ 72%

market share.

Eva cosmetic is the market leader with 28%

as compared to Unilever which has a 19%

market share.

Eva product with 28% market share is the

market leader with 28% market share, followed

by Lux (Unilever) with 13% market share.

Vaseline has a negligible market share which

cannot be determined, included under the

others bracket which constitutes a total of 16%

market share.

HAND CARE MARKET IN EGYPT

Hand Care Market in Egypt has a very small

market recording a growth of 18.3% for a

period from 2006-11

Projected growth rate for a period of 2011-

16 to fall to about 8.1% with growing

competition and market size

Hand Care Market in Egypt is very small as

shown in the above slide with less no. of

companies, with top 5 companies covering ~

50% market share.

Beiersdorf with 21% market share is the leader,

closely followed by Unilever with 13%, worth a 0.3 $mn value.

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

2006 2007 2008 2009 2010 2011 2016

1.0 1.3

1.6 1.9

2.1 2.3

3.4

$ m

n

Eva Cosmeti

c, 6.4, 28%

Unilever , 4.5, 19%

J&J, 2.2, 10%

Marico, 2.1, 9% Oriflame

, 1.3, 6%

Beiersdorf, 1.0,

4% Burnus, 0.8, 3%

Avon, 0.7, 3%

Clarins SA, 0.5,

2%

Others, 3.6, 16%

Company Shares $mn

Eva, 6.4, 28%

Lux, 2.9, 13%

Johnson's, 2.2, 9%

Fiancée, 2.1, 9%

Dove, 1.7, 7%

Oriflame, 1.3, 6%

Nivea, 1.0, 4%

Kamill, 0.8, 3%

Avon, 0.7, 3%

Clarins, 0.5, 2%

Others, 3.6, 16%

Oriflame, 0.8, 33%

Beiersdorf, 0.5,

21%

Unilever, 0.3, 13%

Luna Cosmetics, 0.2, 8%

Yasmina, 0.1, 4%

Avon , 0.1, 4%

Others, 0.4, 17%

Brand Shares $mn

Company Shares $mn

31

Oriflame covers the highest brand share with

0.8 $mn market value, and a 34% market share,

followed by Atrix.

Vaseline’s market value is 0.1 $mn, with 4%

market share.

LIP CARE MARKET IN EGYPT

Lip Care Market in Egypt being small is growing

at a 11.4% CAGR for a period 2006-11

Projected growth rate for a period of 2011-16 is

forecasted by Euromonitor to be 10.8%

Lip Care Market in Egypt is a 2.4 $mn market, in

which Luna covers 54% market share with very

less no. of companies.

Oriflame is second on list with only 13%, Unilever

on other hand has a meagre market share.

Luna similar to its company share has a 54%

market share with 1.3 $mn market value

Vaseline has a negligible market share which cannot be determined, included under the

others bracket which constitutes a total of 13%

market share.

Luna, 1.3, 54%

Oriflame , 0.3,

13%

Mash , 0.2, 8%

Avon , 0.2, 8%

Beiersdorf ,

0.1, 4%

Others, 0.3, 13%

Luna, 1.3, 54%

Oriflame, 0.3, 13%

Liza, 0.2, 8%

Avon, 0.2, 8%

Labello, 0.1, 4%

Others, 0.3, 13%

0.0

1.0

2.0

3.0

4.0

2006 2007 2008 2009 2010 2011 2016

1.4 1.5 1.6 1.9 2.1

2.4

4.0

$ m

n

Oriflame, 0.8, 34%

Atrix, 0.5, 21%

Dove, 0.2, 8%

Luna, 0.2, 8% Yasmina

, 0.1, 4% Vaseline, 0.1, 4%

Avon, 0.1, 4%

Others, 0.4, 17%

Brand Shares $mn

Brand Shares $mn

Company Shares $mn

Brand Shares $mn

32

VIETNAM

COUNTRY SNAPSHOT

Location

Southeastern Asia, bordering the Gulf of Thailand, Gulf of Tonkin, and South China Sea, as well as

China, Laos, and Cambodia


Border Countries: Cambodia 1,228 km, China 1,281 km, Laos 2,130 km

Languages: Vietnamese (official), English (second language), French, Chinese, Khmer Mountain area

languages (Mon-Khmer and Malayo-Polynesian)


Age structure:




Religion: Roman Catholic 89.8% (about 75% practicing), Eastern Orthodox 1.3%, Protestant 0.3%,

other 0.3% unspecified 8.3% (2002)

Economic Snapshot

GDP (purchasing power parity): $ $765.6 billion (2011 est.)


33

Boroplus against Vaseline: Identified Gaps of presence in UAE


Vaseline body lotion

Vaseline body wash

Vaseline face wash

Vaseline face wash scrub

Vaseline aloe cool & fresh lotion

Vaseline lip therapy original

Vaseline healthy white

Vaseline lip therapy rose lips

Vaseline petroleum jelly

Vaseline Total Moisture Lotion

-

Body Lotion

Face Wash

Cool & fresh Lotion

Healthy White Cream

Lip therapy

Petroleum Jelly

SKIN CARE MARKET IN VIETNAM

HEADLINES

Skin care sees strong compounded growth of 21% for a period 2006-11

Skin care products are more diversified to satisfy consumer needs and brand

availability is better due to growing demand

Nourishers/anti-agers has the highest current value growth in skin care at 27%

Unit prices increase in 2010 due to increasing availability and consumer preference

for more expensive brands

Beiersdorf AG continues to lead skin care with 15% value share in 2010

Over the forecast period skin care is expected to grow by a constant value CAGR of

12%

34

TRENDS

Skin care saw a strong

compounded annual growth

of 18.8% in 2006-11 as it

became more diversified. As

consumers became more

knowledgeable about the

skin care process, companies

continued to launch more

diversified products targeting special needs to drive sales.

Firming/anti-cellulite body care was another good performer in skin care. Most

Vietnamese women, especially those in middle-age, do not exercise regularly and

thus need to rely on

firming/anti-cellulite

products to treat their

bodies. Post-pregnancy

women were also a main

consumer group for this

segment, as they strive to

attain their pre-pregnancy

body and skin.

Projected CAGR for a

period of 2011-16 is 16.8%, showing a growth to almost double.

Facial Care is the most sought after market in Vietnam, with GAGR of 2006-11

recorded at 19.8% and also projected to grow at 17.6%, value of which according to

Euromonitor would be 175.4 $mn.

Facial products were advertised to cater to an extensive range of skin types, from

normal, dry, or oily skin. As Vietnam is a tropical country, the weather is usually

humid. Consumers were more prone to oily skin. There was therefore more demand

for these products.

0

50

100

150

200

250

2006 2007 2008 2009 2010 2011 2016

39.3 44.9 51.2 59.0 71.3

93.1

202.5

$ m

n

0

50

100

150

200

250

2006 2007 2008 2009 2010 2011 2016

3.7 4.2 4.8 5.5 6.7 8.7 18.6 31.9 36.8 42.3 49.2 59.8

78.6

175.4

3.6 3.9 4.1 4.3

4.8

5.9

8.5

$ m

n

Hand Care

Facial Care

Body Care

35

Top 5 companies account for

a total of ~52%, considering

there are lot of players in the

market, with Beiersdorf

being the market leader with

15%, unilever being 9%

Competition is high as

evident in the others share

bracket which accounts for ¼ th market share.

Nivea accounts for 15% market shared valued at 13.6 $mn market size.

Vaseline has total of 1.6 $mn

market size in a very

competitive market.

Beiersdorf offered body, lip

and facial to hand care,

targeting different trends

such as firming, anti-acne,

whitening and men’s

grooming, which satisfied the consumer.

SKIN CARE DISTRIBUTION IN VIETNAM

SKIN CARE


Supermarket (20%)

Hypermarkets (8%)

Small Grocery Retailer (12.7%)

Non-grocery retailers (44.7%)

Health & Beauty

Retailers (29.6%)

Mixed retailers (13.3%)

Other Non-grocery retailers (1.8%)

Direct Selling (14.6%)

Beiersdorf, 13.6, 15% P&G, 11.6,

12%

Unilever , 8.1, 9%

Shiseido, 8.1, 9% L'Oréal, 7.0,

7% Oriflame, 6.1, 7%

Kao, 5.9, 6%

Wipro, 3.9, 4%

Avon , 3.0, 3%

J&J, 2.6, 3% Others,

23.1, 25%

Nivea, 13.6, 15%

Olay, 11.6, 12%

Shiseido, 8.1, 9%

Oriflame, 6.1, 6%


6%

Eversoft, 3.7, 4%

Bioré, 3.5, 4%

Pond's, 3.5, 4%

Avon, 3.0, 3%

Kanebo, 2.4, 2%

Others, 32.4, 35%

Company Shares $mn

Brand Shares $mn

36

BODY CARE MARKET IN VIETNAM

Body Care Market in

Vietnam is on a high

with a CAGR of 18.6%

for a period from

2006-11 and projected

to grow with that

market almost

doubling, valuing 18.6

$mn in 2016, with

CAGR of 16.4% for the

2011-16.

Body Care Market in Vietnam is

lead by Beiersdorf with 19%

market share.

Unilever hails a 15% market

share, valuing 1.3 $mn.

Nivea is the market with 19%

market share, closely followed by

Oriflame with 16%

Vaseline has a market share of 7%,

valuing a 0.6 $mn, interesting thing

is presence of Hazeline, also a

Unilever product in the similar

range.

0

5

10

15

20

2006 2007 2008 2009 2010 2011 2016

3.7 4.2 4.8 5.5 6.7

8.7

18.6

$ m

n


Oriflame, 1.4, 16% Unilever,

1.3, 15%

Avon, 0.7, 8%

P&G, 0.6, 7%

Clarins, 0.6, 7%

Wipro, 0.3, 4%

Ascendia, 0.3, 3%

L'Oréal, 0.3, 3%

Elizabeth Arden, 0.1, 1%

Others, 1.5, 17%

Company Shares $mn

Nivea, 1.7, 19%

Oriflame, 1.4, 16%

Hazeline, 0.7, 8%

Avon, 0.7, 8%

Olay, 0.6, 7% Vaseline, 0.6, 7%

Clarins, 0.6, 7%

Vichy, 0.3, 3%

Enchanteur, 0.2, 2%

Lander, 0.2, 2%

Others, 1.8, 21%

Brand Shares $mn

37

HAND CARE MARKET IN VIETNAM

Hand Care Market in

Vietnam has been

growing at a 10.4% CAGR

for a period from 2006-

11

Projected growth rate for

a period of 2011-16 to be

about 7.6% with growing

market size which would be valued at ~8.5 $mn.

Hand Care Market in Vietnam is

constituted of less number of

companies.

Unilever with 17% market share is the

leader, closely followed by Beiersdorf

with 13%, whereas the last few

companies constituting 42% market

share valued at 2.5 $mn.

Vaseline has a market share of 17% thus covering the highest brand share with 1

$mn market value, and a 17%

market share, followed by

Nivea.

0

2

4

6

8

10

2006 2007 2008 2009 2010 2011 2016

3.6 3.9 4.1 4.3 4.8 5.9

8.5

$ m

n

Unilever, 1.0, 17%

Beiersdorf , 0.8,

13% Oriflame, 0.4, 7% PH

Beauty, 0.3, 5%

Ascendia, 0.3, 5%

Lana , 0.2, 3%

L'Oréal, 0.2, 3%

J&J, 0.2, 3%

Shiseido, 0.1, 2%

Others, 2.5, 42%

Company Shares $mn

Vaseline, 1.0, 17%

Nivea, 0.8, 13%

Oriflame, 0.4, 7%

Freeman, 0.3, 5%

Lander, 0.3, 5%

Lana, 0.2, 3%

Vichy, 0.2, 3%

Neutrogena, 0.2, 3%

Shiseido, 0.1, 2%

Olay, 0.1, 2%

Others, 2.4, 40%

Brand Shares $mn

38

FACE CARE MARKET IN VIETNAM

Facial Care in Vietnam

is the most dynamic

sector growing at a

19.8% CAGR for the

period 2006-11,

currently valuing at

78.6 $mn.

A tremendous growth

is also projected

which according to euromonitor is going to be valued at 175.4 $mn thus

accounting for a CAGR of 17.4%.

Body Care Market in Vietnam is

competitive, leading the race is

Beiersdorf with ~14%.

Unilever has a 8% market share,

valuing 5.9 $mn.

Nivea is the market with 14%

market share, closely followed by Olay with less than 14%.

Vaseline has a market value a 1.6

$mn, but does not fall in the top

10 bracket hence not included in

the pie.

0

50

100

150

200

2006 2007 2008 2009 2010 2011 2016

31.9 36.8 42.3 49.2 59.8

78.6

175.4

$ m

n

Beiersdorf , 11.1,

14%

P&G, 10.8, 14%

Shiseido, 8.0, 10% L'Oréal ,

6.6, 8%

Kao, 5.9, 8%

Unilever, 5.9, 8%

Oriflame, 4.2, 5%

Wipro, 3.5, 4%

J&J, 2.5, 3%

Avon, 2.2, 3%

Others, 17.6, 23%

Company Shares $mn

Nivea, 11.1, 14%

Olay, 10.8, 14%

Shiseido, 8.0, 10%


7% Oriflame, 4.2, 5%

Eversoft, 3.5, 5%

Bioré, 3.5, 5%

Pond's, 3.5, 4%

Kanebo, 2.4, 3%

Avon, 2.2, 3%

Others, 23.8, 30%

Brand Shares $mn

39

PAKISTAN

COUNTRY SNAPSHOT

Location

Southern Asia, bordering the Arabian Sea, between India on the east and Iran and Afghanistan on

the west and China in the north


Border Countries: Gaza Afghanistan 2,430 km, China 523 km, India 2,912 km, Iran 909 km

Languages: Punjabi 48% Sindhi 12%, Saraiki (a Punjabi variant) 10%, Pashtu 8%, Urdu (official) 8%,

Balochi 3%, Hindko 2%, Brahui 1%, English Burushaski, and other 8%


Age structure:




Religion: Muslim (official) 95% (Sunni 75%, Shia 20%), Other (Christian and Hindu)5%

Economic Snapshot

GDP (purchasing power parity): $488 billion (2011 est.)


40

Boroplus against Vaseline: Identified Gaps of presence in Egypt


Vaseline Total Moisture

Vaseline Aloe Fresh Hydrating Lotion

Vaseline Intensive Rescue Lotion

Vaseline Menz Hydrating Lotion

-

Total Moisture

Aloe Fresh Hydrating Lotion

Intensive Rescue Lotion

Mens Hydrating Lotion

SKIN CARE MARKET IN PAKISTAN

Pakistan has a fairly

growing Skin care market

with a CAGR of 10% for

the period 2006-15

Projected CAGR for a

period of 2011-15 is

8.5%, considering the

growing competition.

Facial Care leads the

segment with market

size of 62.5 $mn,

with a CAGR of 9.9%

for a period of 2006-

11.

Skin care market in

Pakistan is a 78.2 $mn

market, having Unilever

leading the way with 36%

market share.

Top five companies

covering ~75% of market

share in whole.

0

20

40

60

80

100

120

2006 2007 2008 2009 2010 2011 2015

53.2 59.1 64.8 71.1 78.1

85.5

118.7

$ m

n

0

20

40

60

80

100

120

2006 2007 2008 2009 2010 2011 2015

4.9 5.5 6 6.5 7.1 7.7 10.6

38.9 43.2 47.3 51.9 57 62.5

86.9 2.5 2.8 3.1 3.4 3.7 4.1

5.7

$ m

n Hand Care

Facial Care

Body Care

Unilever, 28, 36%

Revlon, 11.9, 15%

Forvil, 9.1, 12%

Coslab, 6.6, 8%

L'Oreal, 2.8, 4%

J&J, 2.8, 4%

Reckitt Benckiser,

1.9, 2%

Beiersdorf, 1.4, 2%

Church & Dwight, 1.2,

1%

Coty Inc., 1.1, 1%

Others, 11.4, 15%

Company Shares $mn

41

SKIN CARE DISTRIBUTION IN PAKISTAN

Independent retailers form the major part of distribution of Skin Care items in Pakistan

BODY CARE MARKET IN PAKISTAN

Body Care Market in

Pakistan is on a steady

growth with a CAGR of

9.5% for a period from

2006-11

Projected to grow with that

valuing 10.6 $mn in 2015,

with CAGR of 8.3% for the 2011-15.

Unilever with a ~44% market share

leads the Pakistan market.

Less number of competition in this

market.

SKIN CARE

Independent Retailers (37.59%)

Specialist Retailers (26.96%)

Supermarkets /

hypermarkets (19.68%)

Convenience Stores

(8.29%)

Department Stores (incl. Duty-Free

Shops) (4.39%)

Pharmacies / drugstores

(2.76%)

0

2

4

6

8

10

12

2006 2007 2008 2009 2010 2011 2015

4.9 5.5 6 6.5 7.1 7.7

10.6

$ m

n

Unilever, 3.1, 44%

Forvil , 1, 14%

Coslab, 1, 14%

Henkel , 0.4, 6%

Other, 1.6, 22%

Company Shares $mn

42

HAND CARE MARKET IN PAKISTAN

Hand Care Market in

Pakistan has been

growing at a 10.4%

CAGR for a period from

2006-11

Projected growth rate

for a period of 2011-16

to be about 8.6% with

growing market size.

Hand Care Market in Pakistan is

constituted of very less number of

companies.

Beiersdorf being the market

leader with 31% market share.

0

1

2

3

4

5

6

2006 2007 2008 2009 2010 2011 2015

2.5 2.8 3.1 3.4 3.7 4.1

5.7

$ m

n

Beiersdorf, 1.2,

31% Coty ,

1.1, 29% Del

Laboratories, 0.1,

3%

Other, 1.4, 37%

Company Shares $mn

43

COMPARITIVE ANALYSIS

METHODOLOGY FOR ANALYSIS

PARAMETERS FOR ANALYSIS & WEIGHTAGE

COUNTRY PARAMETERS:

Population (5)

Population Growth Rate (10)

GINI Index (5)

Ease of Doing Business (World Rankings) (20)

Per Capita GDP PPP (10)

SKIN CARE PARAMETERS:

Market Size (10)

CAGR 2006-11 (10)

CAGR 2011-16 (15)

Per Capita Skin Care Consumption (5)

Herfindahl Index (10)

HAND CARE/ BODY CARE/ FACIAL & LIP CARE

Market Size (20)

CAGR 2006-11 (20)

CAGR 2011-16 (40)

Herfindahl Index (20)

STEPS TAKEN FOR ANALYSIS

Every parameter was given a rating and a weightage.

Ratings were given on 5, with a comparative study.

Ratings were then multiplied with the given weightage; to get the SCORES.

A sum of the SCORES were taken to get a clear picture of the priority markets, each

different for:

COMMON PARAMETERS (Country and Skin Care Market Parameters)

BODY CARE MARKET PARAMETERS

HAND CARE MARKET PARAMETERS

44

Common Parameter Analysis

UAE KSA EGYPT VIETNAM PAKISTAN

Population 5,314,317 26,534,504 83,688,164 91,519,289 190,291,129

Rating 1.5 2.5 3.2 3.5 4.3

Weightage 5 5 5 5 5

Weighted Rating 7.5 12.5 16 17.5 21.5

Population Growtn Rate

(2012 est.)

3.06% 1.52% 1.92% 1.05% 1.55%

Rating 4 2.8 3.3 2.4 3

Weightage 10 10 10 10 10

Weighted Rating 40 28 33 24 30

Gini Index (2007-08) 31*** 32*** 34.4* 37.6 30.6

Rating 3.6 3.2 2.5 2 4

Weightage 5 5 5 5 5

Weighted Rating 18 16 12.5 10 20

Ease of Doing Business

World Rankings

33 12 110 90 105

Ratings 3.8 4.5 2 2.8 2.3

Weightage 20 20 20 20 20


GDP Per Capita PPP

(2011) in $

48,500 24,000 6,500 3,300 2,800

Rating 4.5 4 3 2.2 1.9

Weightage 10 10 10 10 10


SKIN CARE

Size ($ mn) 124.9 461.8 57.7 93.1 85.5

Rating 3.9 4.4 2.4 3.1 2.8

Weightage 10 10 10 10 10


CAGR 06-11 11.80% 9.40% 11.90% 18.80% 10%

Rating 3.7 2.8 3.8 4.5 3

Weightage 10 10 10 10 10

45


CAGR 11-16 7.40% 8.80% 12.40% 16.80% 8.50%

Rating 2.9 3.4 4 4.5 3.2

Weightage 15 15 15 15 15

Weighted Rating 43.5 51 60 67.5 48

Per Capita Consumption

($ mn)

1.1 17.2 0.7 15.1 0.5

Rating 3 4.4 2.8 4.2 2.5

Weightage 5 5 5 5 5

Weighted Rating 15 22 14 21 12.5

Herfindahl Index 0.08 0.12 0.08 0.06 0.14

Rating 2.5 3.8 2.5 2 4

Weightage 10 10 10 10 10


The Analysis of the data is as follows:

Overall analysis of country and skin care market parameters indicate that Saudi

Arabia (KSA), is a proven leader, most importantly in terms of Ease of doing Business

and market size.

Also noticeable is a fact that Vietnam is a growing skin care market and rates third in

terms of overall entry.

Egypt on other hand though has a growing skin care market scores low on ease of

doing business.

UAE KSA EGYPT VIETNA

M PAKISTA

N

Country 346 369.5 292.5 314 295

346

369.5

292.5

314

295

200

220

240

260

280

300

320

340

360

380

SCO

RES

46

Body Care Market Parameter Analysis


Size ($ mn) 49.4 226.3 23.2 8.7 7.7

Rating 3.7 4.5 3.2 2.3 2

Weightage 20 20 20 20 20


CAGR 06-11 8.70% 8.40% 13.90% 18.60% 9.50%

Rating 2.8 2.5 4 4.5 3.4

Weightage 20 20 20 20 20


CAGR 11-16 6.7% 8.4% 15.3% 16.4% 8.3%**

Rating 2.6 3.3 4 4.4 3.2

Weightage 40 40 40 40 40


Herfindahl Index 0.15 0.17 0.13 0.1 0.2

Rating 3.5 3.8 3.2 2.3 4

Weightage 20 20 20 20 20


47


Saudi Arabia (KSA) is the overall leader in the Body Care segment with the common

parameters, followed by Vietnam.

Egypt is the leader in the body care segment alone and projected to grow at a rate of

15.3%, also indicating a perfect competition ahead with the Herfindahl index being

0.13.

Looking at a product line of Vaseline in KSA market, BPIT and petroleum jelly and

body lotion have got a good potential, whereas in Egypt Market, Vaseline products

being under the Intensive Care Hood, BPIT can can be a better option considering

direct relation


Body Care Parameters 304 348 368 358 316

Common Parameters 346 369.5 292.5 314 295

346 369.5 292.5

314 295

304

348

368 358

316

0

100

200

300

400

500

600

700

800

SCO

RES

48

Hand Care Market Parameter Analysis


Size 3.9 25.6 2.3 5.9 4.1

Rating 2.5 4.2 2 3.1 2.8

Weightage 20 20 20 20 20


CAGR 06-11 9.30% 9.90% 18.10% 10.40% 10.40%

Rating 2.9 3.2 4.5 3.8 3.8

Weightage 20 20 20 20 20


CAGR 11-16 7.50% 9.60% 8.10% 7.60% 8.6%**

Rating 2.6 4 3.2 2.9 3.5

Weightage 40 40 40 40 40


Herfindahl Index 0.08 0.34 0.19 0.06

Rating 2.5 4.1 3.6 2.2

Weightage 20 20 20 20

Weighted Rating 50 82 72 44

49


Saudi Arabia leads the market in the Hand Care segment individually, and also

combining it with the common parameters, followed again by Egypt.

Also, to be considered is that even though both the above markets have higher

market size; Vietnam has also got a good product line in the Hand Care segment.

UAE KSA EGYPT VIETNAM

Hand Care Parameters 312 472 402 358

Common Parameters 346 369.5 292.5 314

346 369.5 292.5 314

312

472

402 358

0

100

200

300

400

500

600

700

800

900

SCO

RES

50

CONCLUSION AND RECOMMENDATION

Overall Market Analysis suggests that; The major markets which can be the priority in terms of

Ranking are:

1. SAUDI ARABIA:

Rates well in all the given umbrella of parameters; Common, Body Care and Hand

Care.

Body Care products are the best segment to enter the market.

2. EGYPT:

Though it does not rate in the country parameters, it seconds KSA, in terms of

parameter ratings in Body care and Hade Care in combination with the Common

Parameters.

Intensive Care products are pitched in by Vaseline, thus for Boro Plus entry with

BPIT, would be a better option.

3. VIETNAM:

A huge market in terms of rate at which it is growing; and also standing well in the

parameters rating.

Also, venturing in this market may also help us diversify in the Lip Care segment, for

which the market size is less and opportunistic too.

Facial Care market in Vietnam is growing at a rapid rate; thus making it an

opportunistic market to enter in this skin care category

51

LEARNINGS

The project “Mapping Boroplus Against Vaseline in Global Market” was the first big project

in my life which I had to start and complete by myself. Initially it looked like a very big task,

but gradually as I divided my work in divisions for which I kept specific deadlines, it became

easier and interesting for me. I had always read about different marketing research works

conducted to launch products in the market or to explore a market or to analyze the

potential of the market, but this project gave me a real life experience of analyzing markets.

My project was such that I had to understand the international markets and the products

offered by the company by squeezing out information from the Export Managers and Brand

Managers. This taught me the skill of asking the right questions for getting the right

answers. Quality and not Quantity is what I learnt at Emami.

Being on the job for almost two months I got awareness about the qualities required to

perform a job successfully.

This project taught me how to take a practical approach of looking at things and that too

from different angles.

Data mining is a tedious job but at Emami I learnt some of the effective ways of data mining.

Networking is very essential for all of us at it can be fruitful at any point in future. Being a

fresher I even learnt few of the arts of networking.

52

REFERENCES

The following sources have been used to make this report:

• Euromonitor

• Datamonitor

• CIA World Factbook

• GNPD Mintel

• www.supermart.ae

• www.vaseline.com.pk

• World Bank

Definitions

a) Skin Care: This is the aggregation of facial care, body care and hand care.

b) General Purpose Body Care: Includes all body lotions or creams (including spray creams/lotions

and dry oil sprays), both premium and mass market, marketed as moisturisers. Excluded are foot

care products.

c) Facial Care: This is the aggregation of acne treatments, facial moisturisers, nourishers/anti-agers,

facial cleansers, toners, face masks, and lip care.

http://www.supermart.ae/

http://www.vaseline.com.pk/

Documents

SIP_ SHAUNAK SARDESSAI.pdf