ASSIGNMENT Zero.2 | Đình Giang, Khánh Thy, Nhật Minh, Kỳ Vỹ

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| BUSINESS OVERVIEW |

Gillette is market leader in Vietnam shaving category with fragmented competition

42.9 43.344.3

45.446.3

46.9

40

41

42

43

44

45

46

47

48

2007 2008 2009 2010 2011 2012

No 1 shaving brand with constant growth over year

CHALLENGE: How to increase 20% profit ($0.8MM) in the upcoming year

Positioning:

Expert in male grooming

Low price product for

low-tier segment

Vs.

Strong brand equity and differentiation from competitors

But, Gillette’s performance is still behind P&G goal

Share

Source: P&G Asian Business Challenge 2012

| SOURCE OF GROWTH |

MARKET DEVELOPMENT

MORE USERS

Recruit new category user

Steal competitors’

users

MORE USAGE

Frequency Dosage/usage

MORE BENEFITS

Increase consumer base Increase usage per consumer

Increase purchase value

per consumer (by

providing extra benefit)

Let’s consider three sources of growth for Gillette…

|Scenario 1: MORE USER |RECRUIT NEW CATEGORY USER: not enough room to grow

STEAL COMPETITORS’ USERS: have overcome two challenging barriers

Have to break the sales record

Increase $0.8MM profit increase $2.8MM revenue/year ~ 9% share/year while Gillette obtained only 4% share up from 2007 to 2012

Have to steal low-tier consumer while it’s difficult to change their shopping behavior

30.0%17.9%

49.2%

20.7%

20.8%

61.4%

0%

20%

40%

60%

80%

100%

Total market Gillette

1st tier

2nd tier

3rd tier

Gillette already

captures high-tier

segment

Value share by segment

Blades and razor penetration is already high at 92%. 8% market left is not enough for P&G ambition

Usage & Attitude of low-tier consumers:

-Price conscious (buy products with 60% index to Gillette)

- Stick to current brand with basic benefits (influenced by Dad/Brother)

Source: Kantar World panel 20124

| SCENARIO 2: MORE USAGE |

It’s take time to change shaving behaviors of Vietnamese guy.They have low frequency of shaving due to both biological and social reasons

1.9 shaves/week 4.5 shaves/week

BIOLOGICAL REASONS:-Vietnamese men have 67% less hair than Western guy

SOCIAL REASONS:- 68% Vietnamese guy likes to have beard- 56% have high willingness to have beard

Vietnam guyWestern guy

Vs.

Source: Kantar World panel 2014

Observation against more usage strategy:Men have tendency to buy new razor/blades according to how much time used rather than how many times used Shaving more (with insignificant incremental) may not make consumer change razor more frequently

| Scenario 3: More benefit |There is promising opportunity to up-trade low-tier segment to higher-tier segment

Double edge and low-price disposable user generates low purchase value per year

4,986

21,488

25,024

60,640

28,560

100,320

135,660

Superthin Double Edge 1 unit

Superthin II Dispo 1 unit

Blue II Dispo 1 unit

Blue 3 Dispo 1unit

Vector Cart 1 unit

Mach 3 Cart 1 unit

Fushion Proglide Razor

Fushion Proglide Cart 1 unit

Big gap between value and volume of double edge and disposable

Less than 30k/year

20.8%

61.4%13.2%

20.7%66.0%

17.9%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Volume Value

Double Edge

Disposable

Systems

Gillette volume and value share by variants Average purchase value/buyer/year by variants

| SOURCE OF GROWTH |

MARKET DEVELOPMENT

MORE USERS

Recruit new category user

Steal competitors’

users

MORE USAGE

Frequency Dosage/usage

MORE BENEFITS

More benefit or uptrading is suitable strategy to obtain 20% profit increase in one year

Who are current buyer of Double Edge and Low-price disposables?

Double Edge

Low-price disposable

Using double edge is a long-lasting habit that formed since they were youngSatisfy with basic functional benefits

Skew to Men 40+ (70%)

A part is Young male 15 -20 (15%)

Be influenced by Dad to use Double Edge since the first time shaving

Skew to Men 18 – 35(85%)

Care for appearance Smart shopper, need strong RTB to uptrade

The Old Men

The Early

Adopter

The Smart User

Select Early Adopter and The Smart User as Target consumer for uptrading

since they are more open to try new things

Source: Research on shaving behaviors by group 2– Sample size:124

• Friction while shaving: No lubricant/low lubricant

products doesn’t slide against skin

• Hairline isn’t cleared completely

• Nick and Cut happens regularly while using

double edges

TRIGGER AND BARRIER FOR UPTRADING

Friction while shaving is No1 unmet

need

Price gap are top concern

for uptrading to System

Recommended Retail Price (VND)

Superthin Double Edge 1 unit 1,520

Superthin II Dispo 1 unit 7,900

Blue II Dispo 1 unit 9,200

Blue 3 Dispo 1unit 18,950

Vector Razor 29,000

Vector Cart 1 unit 11,900

Mach 3 Razor 92,000

Mach 3 Cart 1 unit 62,700

Fushion Proglide Razor 199,500

Fushion Proglide Cart 1 unit 99,750

1

2

3

Blue 3 is affordable variant to solve unmet need of target consumersOnly need to convert 20% Super Thin II User, 20% Blue II user, 5% Double Edge user to Blue 3 to meet profit targer

CONSUMER INSIGHT

Shaving is uncomfortable activity that I have to experience daily since my razor does not slide

against skin and completely clean hairline. But after all, I think it is a

part of normal shaving

Consumer

truth

Brand

truthCategory

truth

Enhance lubricant strip: razor easily slide against and help moisturize skin after shaving

Triple blades: completely clean hairline

“The best disposable razor a man can get”

OUR RECOMMENDED STRATEGY

Upgrade Low-price Disposable and

Double Edge users to use Blue 3

Target consumers

_ “Vietnam 1 and Vietnam

2” group

- Age: 15 - 35

_ Current users of low-price

disposable or Double Edge

of Gillette

Proposition

Blue 3

Expert disposable razor help clean hair

completely in very smooth way

Communication Idea

ONE SLIDE TO THE GOALThe Gillette Blue 3 with triple blades and enhanced

lubricant strips will help you to shave faster, safer and

cleaner so that you can overcome obstacles and slide

to the goal in a smooth, fast, clean and safe way .

LƯỚT ÊM VỀ ĐÍCH

Expert disposable razor help clean hair completely in very smooth

way

Proposition

How to

illustrate One slide cleans hair completely

Platform Football – Men’s religion of Vietnamese guys

+

- The scene will be divided into 2 parts.

- The left side presents a man holding a Blue 3 razor and about to shave. The right side present a football

player holding a ball under his feet, there are a lot of defender in front of him.

- On the left side, the man begins to shave smoothly as the football player dribbles through defenders very

smoothly to the goal.

- At the end, the man only take 1 continuous slide to shave his face as the football player by himself going

through all the defender to the goal and score.

The TVC aims to illustrate the smooth and clean of Blue 3 like strength and skills of the football player.

TVC CONTENT

EVENT THE “ONE SLIDE” SHAVING CHALLENGE.

- Gillette will hold an event with UEFA Euro 2016 theme

and invite men to join in.

- Men will be given a Blue 3 razor and will be ask to

overcome the “One slide” shaving challenge which ask

the man to shave their beard entirely with only one

continuous slide.

- With the design of Blue 3 with 3 blades and enhanced

lubricant strips, they will feel it very smooth and clean to

shave with Blue 3.

- The activities will be recorded and awards as ticket to

France to watch UEFA Euro 2016 will be given to the

participant.

- Besides, when come to the event, they can also have

chances to exchange their old razor for a new Blue 3

razor.

One slide to EUROPE

INSTORE ACTIVITIES At DT (high frequency stores)

and MT

- Product will be displayed and

mẻchandised in the theme of

blue, football and UEFA Euro 2016.

- The package of Blue 3 razor will

be displayed in the way that the

consumer can not immediately

get it but they have to hold the

package and slide along the long

curvy steel sticks to get the

package out. They will feel the

one slide of Blue 3.

ASSIGNMENT Zero.2 | Đình Giang, Khánh Thy, Nhật Minh, Kỳ Vỹ

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Thank you!