Published on March 3, 2014
GO TO MARKET STRATEGY FOR FEM (From development to launch) PRESENTED BY: APARNA MOHAN (SCMHRD)
PRESENTATION STRUCTURE Key tasks Background / Indian Market Analysis Competition Study Need gap analysis Product Price NEW Packaging Distribution strategy PROPOSED Communication strategy 2
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key tasks • Study the market, competitors and do a need-gap analysis • Generate prospects for a new potential product along with its positioning and pricing • Focusing on packaging and developing a stand-out attractive pack • Innovate, benchmark & develop a distribution strategy to meet the customer demands • Developing a strong communication and activation plan both Below-the-line & Above-the-line
FACTS OF IndiaN HRC MARKET • Value of Indian Hair Removing Cream (HRC) category : Rs. 230 Cr., growing @ of 14% – Current major players in this category : Veet & Anne French Tremendous scope if customers who visit salons could be shifted to self-depilation • Upper leg usage in India is 11% against 59% in other markets • Lower leg usage in India is 24% against 93% in other markets • Consumption goes down with age: – – 34-44 -> 39% – • 15-34 -> 54% 45-65 -> 18% Growth in HRC category due to – Rise in : • Number of working women in India, • Number of western Apparel in one’s wardrobe & • Acceptance of time saving methods for beautification AC NEILSON DATA – VEET CASE STUDY
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HR MARKET TREND AND COMPETITORS • • Veet 43% Anne French 26% VI-john 16% Fem 8% Others 22% Positioning : Smooth, Glowing in 3 mins • Total Category val. = Rs. 230 Cr 2010 Market Share Brands (%) Veet’s brand personality are : Beauty, Attractive, Success and Modern Brand recognition : Very High – Katrina Kaif & Sign “V” • Some Taglines : “What beauty feels like” , “Ek Khoobsurat Ehsaas” • • • • • • Anne French present for more than 4 decades Focused more on the ease of hair removal (functional aspect) Didn’t modernize itself to meet evolving desires and aspirations of TG Brand Perception : For Older Women Positioning : Silky, Soft and Smooth Tagline : “Go Soft” • VI John is also a prominent player. • Positioning : Soft, Smooth, Beautiful and Safe • Tagline : “Feature Touch”
Competition insights from the field FEM VEET AF DRY ALOE VERA NORMAL LEMON SENSITIVE ROSE OILY SANDAL TUMERIC LAVENDER SIZES 25 & 40 Gms. 25, 40, 60 & 100 Gms 25 & 40 Gms. PRICE 35 & 42 Rs. 42, 46, 72 & 89 Rs. 41 & 48 Rs. MARGINS TO RETAILERS 15% 10-12% 10-12% SCHEMES FOR RETAILERS 1 FREE ON 11 PCS 4% 4% OTHER DISCOUNTS CASH DISCOUNT 1% CASH DISCOUNT 1-2% - EXTRA CHARGES RANGING FROM 300-400 Rs GIVEN FOR DEDICATED SHELF AS PER REPO WITH THE RETAILER. CONSUMER PROMOTION • VATIKA FACE PACK, GULABARI JAL 33% EXTRA Consumers generally ask for Veet. If they ask • Medium SKU sells the most generally for HRCs, retailers give them Veet • Tube SKU is preferred more than the Jar SKU
Primary research for Consumer profiling • TOTAL SAMPLE SIZE: 45, Convenience Sampling • AGE GROUP : 18 – 32 • Students : 64%, Self Employed : 12%, Working with other organizations : 24% • 45 40 35 30 25 20 15 10 5 0 8 Awareness low !! A new need of HRC by Indians frequently traveling abroad has come out • 14 Only 20% of respondents knew about FEM HRC • 42 • • HAIR REMOVAL PROCESSES EDUCATION : Higher than PG : 5%, PG : 27%, Graduate 68% Consumer promotions liked by respondents 10 FREE OTHERS ACCESSORY 2% 12% BUY 2 GET 50% OFF ON 3RD 2% 25% EXTRA 22% ADDITIONAL FREE PROD 21% 25% OFF 41%
DIRECT FROM THE CONSUMER’S MOUTH My Purchase Influencers Friends and family Innovations, offers & discounts "The study shows that both the emotional and utility aspect of cosmetic brands have a significant impact on consumer satisfaction, but that the emotional component has a greater effect." Source: Journal of Business Management. Advertisements in Newspapers & TV Promotion Executives 21 of 45 customers agreed that they go & buy the Market leader Brand, unless these influencers /promotions induce them for a trial! 10
PROS HAIR REMOVAL OPTIONS • Quick, easy to use, cheap at cost, saves time • • Painless CONS Leave skin dry, scratch marks on skin, cuts – skin damage, blackening • Increased & faster hair growth, coarse hair • Smooth & clean finish, hair re-growth delayed • Painful, sticky, messy, • Hair re-grown are natural textured • Expensive, dependent on parlors • Removes tanning and dead skin • Wax might burn skin at times • Quick and easy, can do at home anytime • Chemical reaction & Darkening • No pain • Smells bad • Faster re-growth • Fragrant , no darkening • Moisturizing effect, decent price, • Tested product • Natural or less chemicals, no skin allergy
NEW IMPROVED PRODUCT Vitamin C (Sodium Ascorbyl Phosphate), Liquorice, Niacinamide, Titanium Dioxide Increased Urea & Alkalinity, Increased Thioglycolate. (Dissolves bond of hair with roots) • Product is improved to address the major need of ANTI DARKENING • It comes with a unique moisturizer which basically is a whitening lotion to prevent darkening further • The action of product is reduced to 2 min (It further provides the benefit of ANTI DARKENING) • Jojoba oil is used to give a moisturized benefit on the skin after the application Jojoba Oil • It also has coolant ingredients to provide a soothing feel after hair removal Sodium Methalactate
BETTER PRICING – SKU WISE 25GM 40GM 60GM FEM 35 Rs 42 Rs - VEET 42 Rs 46 Rs 72 Rs ANNE FRENCH 41 Rs 48 Rs 65 Rs RESTAGE FEM 40 Rs 50 Rs 72 Rs RESTAGE FEM 8 Rs 6.25 Rs 6 Rs (PER 5 GM PRICE) • Price of the product is increased in accordance to the premium benefit • With the restage pricing is suggested to be kept at par with VEET • 25gm tube i.e., the trial pack is kept at a lower cost to induce trials • Price is adjusted to give the “volume benefit” to the consumer
PACKAGING - MAIN CARTON BENCHMARKED* *against VEET pack VEET FEM Each variant distinguishable? Y Y Action in minutes highlighted? Y Y Benefits highlighted? Y Y Category fit of HRC Y Y Precautions given? Y N Weight mentioned in the front? N Y Dermatologically tested Y N Logo Y Y Skin type Y Y Attractive Y N 3 min 8 min Action
PACKAGING – MAIN CARTON THOUGHTS : From primary and secondary research the following details were found Must / Can haves Connect Must(S) Logo Benefit from the product Differentiating factor in the product Category of product Distinguishable variants Vibrant Catchy and Modern Colors Pictures to support Branding Offering Customer pull Recognition Ease to shop Attention catcher “Tell me and I'll forget. Show me and I may remember.” Ingredients Credibility building, Affirm Quality Credibility support by any association Trust formation or testing organisation Can(S) One liner to define product Any advanced technology used Quantity Any complementary product Recognition Credibility building Ease to shop Consumer Pull
VEET NOW CHANGES IN THE RE-LAUNCH CARTON • USP visibility : Anti Darkening • Vibrant colors used • Attractive and trendy pack • 2 Minute action highlighted • Innovative shape of pack • Better claims made SPATULA • Wider spatula to support 2 min action claim SKU • Introduced 60 gm SKU FEM NOW
Fem NEW PACK • • • • Attractive, Modern & Trendy Visible & better claims Vibrant colors Detailed
CAPTURING THE TRANSITION
PACKAGING – insert BENCHMARKED* *against VEET pack VEET FEM Advanced formula communicated Y Y Communication on the available variants Y Y Ingredients highlighted as per skin type Y N Ingredients in the product in general Y Y Direction for use Y Y Languages 7 – English, Hindi + 5 south Indian languages 2 – English and Hindi Precautions N Y Glossy with pink background Glossy with White background Attractive Y N Detailed Y N Paper
PACKAGING – INSERT THOUGHTS : From primary and secondary research the following requirements were found Must / Can haves Must(S) Directions for Use Precautions Connect To direct the consumer for proper usage Awareness for consumer Improvements made after benchmarking and research FIRST TIMERS IN THE INSERT Connect Sonakshi Sinha’s Epilogue Generate excitement about the product usage Para on Fem expertise in To generate confidence in the product by delivering fairness regime information about FEM’s strong research base and expertise Highlight MainClaim supporters Ingredients Branding of all variants Awareness Branding of other Branding and Awareness category under FEM Languages increased to 8 Awareness
PRESENT Veet insert • • • • Attractive Colorful Detailed Informative
PRESENT Fem insert • • • • Boring Unattractive Less Illustrative Less Informative
Fem NEW insert • • • • Attractive Informative & Interesting Branding of Fem range Detailed
NEW SACHET OLD SACHET
Key deliverables BETTER FORMULATION NEW 60gm SKU LAUNCH BETTER FRAGRANCE BRANDED SPATULA 2 MINUTE ACTION NEW FEM HRC IMPROVED INSERT DERMATOLOGIST TESTED PREMIUM PACKAGING INNOVATIVE SHAPE OF CARTON
FINDINGs FROM THE SALES DATA • Urban India (80%) as expected is the major contributor to sales than the rural • Category is growing at a rate of 13.11% in Urban & 27.06% in Rural • Top selling SKU : 40 Gm (80%) • All variants contribute almost equally to the sales • Growth rate Brand wise : • Veet : 38.44% • Fem : 13.10% • Anne French : 0.49% • Growth rate Zone wise : • In North : 14% • In South : 14.58% • In East : 25.56% • In West : 14.30% AC NEILSON DATA
Major selling cities, region wise • Sales in North 23% • In South 25% • East 31% • West 21%, NORTH (23%) DELHI KANPUR LUCKNOW SOUTH (25%) EAST (31%) BANGALORE HOWRAH CHENNAI KOLKATA COIMBATORE GUWAHATI WEST (21%) MUMBAI AHMEDABAD NASHIK INTERNAL SALES DATA
BENCHMARKING AGAINST “APPLE & PEACH bLEACH” AND “GULAbARI” FOR distribution • Out of top 40 selling towns 25 were common for the 3 categories • And these cities are majorly in Assam, Kolkata, Gujarat, UP, Rajasthan, Karnataka and Tamil Nadu • HRC vs Bleach -> Avg 44% coverage, HRC vs Gulabari -> Avg 20% States with great potential to increase coverage: o Orissa o Madhya Pradesh o Bihar o Punjab o Uttar Pradesh o Andhra Pradesh o Delhi o Karnataka o Haryana o Maharashtra o Rajasthan ECO DATA
KEY STRATEGIES • In GT, “Chemist” & “Cosmetic” formats to be given equal attention as to the Kirana, Grocers, Self-Service • Coverage of Veet : – Grocers : 30% – Chemists : 30% – Cosmetics : 30% – Others : 10% Fem to follow the same during launch in distribution • Punjab , one of the major opportunity, to tap in both GT & MT due to an exponential growth of this category • Make the highlighted areas the prime focus for improvement in distribution • Improve the coverage and be at par with coverage of Apple & Peach bleach in a short term and Gulabari in long term
HRS BRANDS MEDIA STRATEGY ANALYSIS TV V/S PRINT SPENDING IN 2010 AND 2011 1200 800 700 1000 600 800 500 400 600 300 400 200 RB MH RB WYETH DABUR • VEET’s Ratio of spending (TVC : PRINT) - 2010 -> 20:1 - 20:1 (HRS), 5:1 (Cold Wax Strip) - 2011 -> 19:1 - 2:1 (HRS), 19:1 (Cold Wax Strip), 14:1 (Suprem Essence) MH WYETH FEM HAIR REMOVERS FEM DUAL CARE ANNE FRENCH ROLL ON ANNE FRENCH VI JOHN FEATHER TOUCH TEES MAAR KHAN HRS FEM HAIR REMOVERS FEM DUAL CARE ANNE FRENCH ROLL ON ANNE FRENCH VI JOHN FEATHER TOUCH TEES MAAR KHAN HRS SUPREM ESSENCE COLD WAX STRIP 0 PRESS’11 0 SUPREM ESSENCE PRESS’10 TV’11 100 COLD WAX STRIP TV ‘10 200 DABUR
VEET’S STRATEGY ANALYSED IN DEPTH • Veet has 2 peaks in a year - In 2010 -> May – Sep and Oct – Dec, In 2011 -> Mar – Jul and Aug – Dec • Expenditure on 2 brands at a time TV ADVERTISING • Heavy presence in GEC 1&2 (50-60% in GEC 1, 15-20% GEC 2) • Regional presence in Kannada, Marathi, Tamil, Telugu • Slight presence in Hindi movies, Music channels, News, Sports channels • Spends more during the weekdays (approx 75%) than weekends (25%) • Non-Prime time spendings (approx 60%), Prime time (40%) • Veet ACD : 22 sec, Other brands : 20-25 sec PRINT ADVERTISING • Majorly advertising in the 2nd half of the year • Presence in the dailies (approx 77%), Presence in the supplements (72%) • Present in Marathi, English, Hindi, Kannada, Telugu in dailies • Present in Marathi, English, Hindi, Kannada, Telugu and Tamil in magazines
FEM TV & PRINT LAUNCH PLAN • Heavy presence in TV and Media during launch • 80% of spends are suggested to be on TV for a wider reach • To maintain saliency and wide reach, equal visibility on NPT and PT is suggested which could move to 80 -20 with time • 50 80 50 35 65 30 70 High visibility on GEC 1 & 2 is suggested • Weekdays to Weekends spends to be 65 : 35 • 2 From Fri – Sun (Weekends) only PT to be targeted Heavy presence in PRINT as well • 20 • • 1 From Mon – Thurs (Weekdays) NPT and PT both to be targeted Innovative and interesting print ads to be maintained throughout • Presence in dailies to magazines to be 70:30 • Only supplements to be targeted in dailies • Visibility to be in Hindi, English, Bengali, Marathi, Tamil, Telugu, Kannada (Representing major markets from all the zones)
PRINT AD IDEAS DEVELOPED FOR FEM HRC “SPOTLESSLY SMOOTH TO HANDLE”
PRINT AD IDEAS DEVELOPED FOR FEM HRC “SPOTLESSLY SMOOTH, GLOWING SKIN”
PRINT AD IDEAS DEVELOPED FOR FEM HRC “YOUR FAIRER SKIN TELLS YOU OF YOUR FIRST HAIR ON-BOARD”
PRINT AD IDEAS DEVELOPED FOR FEM HRC “BRINGS THE INVISIBLE BEAUTY MARKS OUT”
PRINT AD IDEAS DEVELOPED FOR FEM HRC “FEM IT AND THEN CUT IT.. (IF YOU HAVE IT, WHY NOT SHOW IT..!! ) SAY BYE TO UNWANTED HAIR NOT TO TONE”
PRINT AD IDEAS DEVELOPED FOR FEM HRC “LOSE YOUR HAIR NOT THE PRECIOUS TONE”
“FEM VILLA” • A common platform for “FEM – HRC” “BEST OF ME” users • • Application to check one’s get up before a party. It would include : To be popularized via website, print • Pic upload & Occasion selection • ads, social sites Dress / ensemble, Footwear selection, • USP : “THE BEST OF ME” Accessory selection – (Jewellery, hats, • Share experiences like : bags, belts etc. ) • My darkening story • selection • Fem experience in one liners • If fem chosen then no darkening, if • Best compliment after “Femming” other HRC chosen then skin will • Perfect “Fem” day in one liner • One word for Fem – HRC • Every month most creative users get a • “Weekend getaway” • Fem Gift Voucher Hair remover selection, Make-up show darkening. • In the end of it personality quotient would come up on : • Fashion sense, Personality • One liner on the person according to the score • Every month the highest scorer would get designer dresses and shoes
SCHOOL AND COLLEGE ACTIVATIONS “ASPIRERS & ACHIEVERS” • A media led on-ground activation suggested • Top institutes from India to be selected • Selected candidates to be distributed with FEM samples for 2 months • Use fem for 8 weeks (max 6 applications) 2 x 60gm jars • Share your Fem experience with Sonakshi Sinha • 12 Best explained experiences get : – Visibility in (“Fem Clan of Princess Calender – 2013”) – Gift vouchers / gift hamper from fem – Visibility on website – Cash prize + certificate “FEM SPOTLESS SMOOTH START” • Cover major schools all over India with free samples, taking sessions on safe hair removal • Entrust loyalty as girls have a greater emotional connect with such first product they use in life
OTHER initiatives • Product visibility to be increased by adding “THE FIRST EVER” tag • Develop a website for FEM HRC • Develop a Facebook page dedicated to FEM HRC • Aggressive visibility in the metro ladies compartment and stations
CONSUMER PROMOTIONS • Promotion needs to be in sync with the product personality and benefit • Product has beauty component attached to it, hence the CP should have the same CP chosen : “FEM APPLE AND PEACH BLEACH” • Beauty component attached • Lucrative option to buy • Would make the pack “A COMPLETE PACK TO FAIRNESS AND SPOTLESS GLOW” SKU wise CP : • 25 gm HRC – 6.6 gm BLEACH • 60 gm HRC – 26.4 gm BLEACH COGS - CP For 25 gm 3.9 For 60 gm 7.05 % COST TO COMPANY 10% 10% MRP - HRC MRP - CP 40 22 72 44 “WIN-WIN SITUATION” %RETURN TO CUSTOMER 55% 61%
TRADE PROMOTIONS • As VEET has a giant pie of the market share, it is necessary to have a launch with heavy advertising and lucrative schemes for a better shelf space and hence visibility • Trade margins as of now are higher than other major players like VEET and ANNE FRENCH • Suggested to maintain the same • In addition to margins, following schemes are suggested • Buy 12 get 2 pieces free against Buy 11 get 1 piece free (This will make the offer look more lucrative against the present offer with an increase of only 1% over the present scheme) • Retailers to be paid for dedicated shelf for 2 months during the launch
RETAIL STORE VISIBILITY - MT • POS in the form of “CAUTION” board • Pull up strip • Floor stickers leading the way to FEM HRC with branding on it • Billing counter to have a product print ad on the table top • Average facings of VEET in a retail store as observed range from 5-12 FEM HRC facings vary from 2-5 For an increase in visibility we should have 8 facings, 2 facings for each variant, SKU wise
RETAIL STORE VISIBILITY - GT • Vibrant and bright strip of FEM HRC branding to be used at the shelf • Danglers / posters to increase visibility • Danglers could be in the shape of legs • Calendars to be distributed to retailers with branding • Best selling outlets to be given a lucrative “shop sign board” with FEM HRC branding • “Magnet” items with branding to be used in retail shops
Success measures of re-launch • Taking away atleast 20%-30% share from VEET • Make a huge presence in the market and increase on awareness • Bind usage with loyalty • Bring back lapsers, attract non-users to try the product • Wash off the fear of darkening amongst the consumers • Receive acceptance and visibility on the ingredients and hence being “less chemical” in content
TASKS GIVEN Indian Market Analysis Competition Study Need gap analysis Product Price Packaging Distribution strategy Communication strategy 51
TASKS ACCOMPLISHED Indian Market Analysis Competition Study Need gap analysis Product Price Packaging Distribution strategy Communication strategy 52
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