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
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
Marketing Mix Go to Market Supply ChainHR Industry Landscape
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%
Marketing Mix Go to Market Supply ChainHR Industry Landscape
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