Vichy Loreal Sun Care Range Marketing Plan 534h1i

Sun Care Range Vichy – Capital Soleil

Kairav Parikh

•65

Swathi Velisetty

•107

Atul Zade

•114

Akshay Shiveshwarkar

•93

Kiran Naik

•58

Ritesh Raushan

•79

Shilpa Surve

•100

Prashant Prakash

•72

Prem Sequeria

•86

Flow of Presentation Sun Screens Need Gap Analysis Industry Competition STP Analysis 5Ps

SWOT Budget

Sun Care

Sun Care Far more than a conventional beauty product industry

Sunscreens the world over Europe & Australia

•not tested for photocarcinogenic agents

USA

•tested for photocarcinogenic agents

Vichy’s Capital Soleil falls in the latter category meaning good news for its s

•Aims at providing the with artificial tanning

•Aims at providing with protection from UVA and UVB

Suntan

Sunscreen

UVB protection

UVA protection

wavelength 280-320 nm

wavelength 320-400 nm

sunburn causing

penetrates skin more deeply causing long term effects like skin aging

Organic compounds like oxybenzone which absorb UV light Opaque materials like titanium dioxide, zinc oxide which reflect light

Absorptive materials – chemical block Opaque materials – physical block

Cancer

Inhibited production of Vitamin D

Allergic reactions

Decrease in warning signals of sunburn

Penetrates into the skin

1938 was when the 1st sunscreen was created by Franz Greiter SPF concept is credited to him in 1962 SPF indicates time person can be exposed to sunlight before sunburn SPF is measured applying 2mg/cm2 of sunscreen

Skin type

Amount of sunscreen absorbed by skin

Activities one engages in

Amount applied

Frequency of reapplication

Educating consumers about sun-related health risks

Protecting all skin types with the best sun protection products

Need Gap Analysis

Skin Damage Tanning Wrinkles Skin Cancer Premature Aging effect Brown Spots

Tropical Nation

Sun Protection throughout the year

Population well spread

Expenditure on cosmetics rising Current Product Range not effective

Skin Care gaining importance

Different skin types Emphasis on Men’s Needs

Sensitive skin

A family product

Sweat Resistant

Kid’s Range

Industry

In 2010 - $4.9 billion,

In 2010 - 515.7 million units

sun protection products

• increase of 27.7% since 2005

• increase of 16.7% since 2005

• 66.3% of the global market's value.

L'Oreal has a 12.6% share of the global market's value.

Supermarkets and hypermarkets distribute 37.8%of the market's value

Skin care industry

•$ 200 Million

•$ 30 Million Sun care industry •20% growth •$ 3 Million Prescription sunscreen market •14.30% growth

India’s per capita cosmetic & toiletries consumption • 50 times less than Hong Kong • 18 times less than Japan • 15 times less than Taiwan • 12 times less than Philippines & Malaysia • Half of China

India’s cosmetic & toiletries industry expected to grow from USD 950 mil to USD 1400 mil in 2-3 years

Column1

Low Cost Branded

Industry growth has been 15-20% in last few years

few major players high entry barriers

fairly high rate of new product launches high ment spending Cost of importing products high

Competition

• Pharmacy • Retail • Direct • Salon

• Cream • Spray • Gel • Wipes

• SPF 15 • SPF 30 • SPF 50

By Channel

By Protection

By Base

By Contents • Different chemical compositions

Lakme

HUL

Himalaya

Clinique

Garnier

Lotus

Ayur

Shahnaz

Ranbaxy

Stiefel

Dr. Reddy

Glenmark

Microlabs

S.T.P. Analysis

Demographic Income Age Gender

Skin type

Geographic Urban v/s Rural Regional

Psychographic Skin Care Conscious

‘Looks’ Conscious

Behavioural Occasions Texture preference Brand loyalty

Targeting the urban affluent family

A product • skin types range to suit • sun exposures • preferences different

Health is vital. Start with your Skin

A product for everyone, because everyone is unique

Market Survey

Respondents

60, 60%

Male Female

Men

Nivea Fair & Lovely Fair & Handsome

Woman Nivea, 12

Ayur, 3 Shahnaz, 10

Fair & Lovely, 22

Garnier, 23

Shahnaz Fair & Lovely Lakme Garnier

Lakme, 30

Nivea Ayur

Others, 6 Tanning, 14

Sun Protection Sun Protection, 80

Tanning Others

Kids, 3 Siblings, 14 Parents, 33 Kids Parents Spouse, 50

Spouse Siblings

Response

No, 45 Yes, 55

Yes No

Response

Yes, 6

No, 29

Yes No

Dont Know, 65

Dont Know

>300 200-300 <100

100-200

100-200 200-300 >300 <100

TYPES

FREQUENCY

EXPERIENCE

CURRENT SATISFACTION

Non greasy

Expensive

More protection

No need

Sweat/ Water resistant

Oily

No skin reactions

Not for sensitive skin

Money’s worth

Not for kids

NonCarcinogenic

No fragrance

Female Daily

Affluent

Occasional Young

Small size preferred

Sale in retail segment more

Medicated products sale low

Urban and affluent area sales are more

Lower SPF sales more

Combo pack sales high

Penetration low in males

Sunscreens in demand

Spray market new

Product

Sun Protection

Sun Care Market After Sun

Self Tan

Unisex Product • Care for areas subject to excess sun exposure • Prevention from sunburns and brown spots • Brown Spot Prevention Complex • Photo-stable • Preservative free • Tested under dermatological control

Children’s Line • Capital Soleil Enfants • Protection against multiple risks of sun exposure • High Resistance • Tested under pediatric control • Gentle and fruity scent

After Sun Products • Soothing Milk, Calming Reparative Gel, Nourishing Soothing Spray • Soothes and re hydrates skin • Promotes repair of sun caused damage

Tanning Products • Self Tan Gel Cream • Self Tan Body Milk • Express Self Tan Spray • Alternative tanning experience to UV exposure • No damage to the skin

Protected and Safe Special products formulated for children Relaxed Confident to walk in the Sun Feel Good factor for using a branded product Gives an even complexion Makes you look young

Gives a young and radiant look

EUROPEAN STANDARDS 2006 Qualified

Exclusive association with Mexoryl XL Protection Factors: • High Coverage Technology through • Mexoryl XL Sun Filtering System + UVA UVB ULTRA filtration

Special Focus on most vulnerable areas • Face • Neck • Shoulders • Hands

Special Children’s Care Products Not women-centric - aimed at the entire family

Skin Type Diagnosis: •Specific Variant •Usage according to Skin Type

VICHY Clinics: •Consulting •Education about Skin Care

Packaging

Simple sophisticated package

Easy to use and store

Complete information and educational

Creams Gels Sprays Ointments Lotions Wax Sticks Roll on

Wipes

Pricing

Should be targeting middle class population Maintain global high quality image Competitive with respect to brands

Maximize current profit

Fair price

Competitor price Usual discounted price Quality as in indicator Scarcity to signify price (not in this case)

Perceived value pricing

Psychological pricing

Promotional pricing

Lakme Sun Expert Sunscreen Lotion • For All Skin types • 120ml, Rs. 140 and 60ml, Rs. 75

Lakme Sun Expert Sun Block • For Sensitive Skin • 50g, Rs. 99

Lakme Sun Expert Sunscreen Soufflé • For Oily Skin • 48g, Rs. 90

Lakme Skin Brightening Gel • After sun use • 48g, Rs. 99

Cool Melon Sun Screen Lotion • SPF10 • 120 ml $11.95

Breezy Berry Sun Block Cream • SPF 20 • 120 ml $14.95

Indian Summer Sun Block Cream • SPF30 • 120ml $14.95

Daily Sun Block • SPF 40 • 120ml $17.95

Intensive Sun Block Spray • SPF 50 • 80ml $14.95

Daily Sun Block • SPF 60 • 60 ml $17.95

Sunscreen lotion

Sunscreen lotion

•SPF -15 •(50ml,100ml, 200ml)

•SPF -30 •(50ml,100ml, 200ml)

Water resistant sunscreen •SPF 20 •(20ml, 50ml, 100ml)

Invisible sun screen for men •SPF 30 •(50ml, 100ml)

After sun burn gel •Multivitamin complex •(50ml, 100ml)

Daily face protect

• SPF 15 • SPF 40

Uvrespons e for body

Uvrespons e for face

• SPF 30 • SPF 50

• SPF 30 • SPF 50

Sun care body gel

Lip/ eye sun block

Body sun block

• SPF 15

• SPF 30

• SPF 25

After sun rescue balm

Body spray

• SPF 15 • SPF 30

Fair & Lovely – Active Sun Block Lotion • SPF 25 • TPI 70

Himalaya-

Protective Sunscreen Lotion • SPF 15 • 100ml, 3.85 pounds

Creams and Lotions

SPF Content

Volume

Price

15

40 ml

99

60 ml

149

40 ml

149

120 ml

199

40 ml

199

60 ml

299

40 ml

199

60 ml

349

80 ml

399

40 ml

599

20

30

40

60

SPF

Volume

Price

Gels

30

30 ml

399

Sprays

30

120 ml

449

Ointments

30

120 ml

349

Wax Stick

30

NA

199

Roll On

30

NA

249

Wipes

50

10 nos

399

Place

Launch time frame

YEAR 1

YEAR 2

PHASE 1

PHASE 2

Products in salons and malls

Products in pharmacy and retails

TEAM PURE

92

Manufacturing unit Wholesalers Malls

Company sales persons Customers

TEAM PURE

94

Distribution (Salons) Manufacturing Unit Wholesaler Direct sales team

Salons Customers

TEAM PURE

96

MANUFACTURING UNIT

WHOLESELLER RETAILER

CUSTOMER

INTERNET BOOM TEAM PURE

98

E-Retail Integration Home delivery retailers to be roped in

Location wise retailer information to be displayed on company’s web site For the Company: Increased Customer access to the product For the Retailer: Increased Visibility & Customer access

Promotion

Television Newspapers Magazines Out of Home Internet Experimental

AXN HBO Star Plus Star Movies Star World Zoom MTV

Channel V NDTV Goodtimes

MTV: Rs 2250 (Primetime 30 sec) Channel V: Rs 2100 AXN: Rs 3600 HBO: Rs 9000 HBO blockbusters: Rs 15,000 Zoom: Rs 15,000

Early morning – 6 to 9 am

Day time – 9.00 to 3.30 pm – Working woman Early fringe – 3.30 to 5.30 pm – Elite housewife, teenager Early news – 5.30 to 7 pm

Prime access •7 to 8 pm •working, elite housewife, and teenager

Late news •11 to 11.30 pm •Working woman, elite housewife, and teenager Late fringe •11.30 to 1 am •Both working, elite housewife, and teenager Late night •1.00 to 6 am •teenager

Beach diaries with VJ Pia Webcam Goddess Goddess workouts MTV Roadies MTV Style check Maximum style diva Just Pooja

Times of India Indian Express Asian Age Mid-day Mumbai Mirror Rate: Rs.1200 to 1700 per square cm

Femina Women’s Era

StarDust CineBlitz Cosmoplitan Verve Rs 550 to 750 per sq cm

Weblogs Podcasts Banners Websites Pop-ups Messengers

Vichy centre locater

Live chat with skin experts Ready reckoner Skin profiler Sun FAQs

• Largest OOH vehicle (14’ x 48’ and larger)

Bulletin

• Largest poster form (12’ x 25’) and most widely available size

• Smaller than 30sheets, located mainly on secondary arterials and in urban neighborhoods

30-Sheet Posters

8-Sheet Poster

Skin diagnosis booths Skin analysis

Detailed report Suggestions for Vichy products Promotional material Quizzes Free samples as gifts

Vichy mobile vans (consumer education) Kiosks at airports and gyms Vichy kiosks inside spas and health clubs

Perfect sun cover …for perfect skin

Use Capital Soliel

Remain sun protected where ever you go!

Capital Soleil for kids

Stop the sun…not the fun

Capital Soleil for the entire body

Protection for every part of you that faces the sun

SWOT

L’Oreal Brand: • World’s largest beauty product company • Gives personalized advice and service • Strong R&D facility • Cosmetological and dermatological

Universality- for all skin types Water Resistant and oil free Seen as dermocosmetic rather than cosmetic

PABA free • Para-amino benzoic acid found in vitamin B complex that absorbs UV rays of the sun

Anti aging and overall skin care

Resistant to repeated bathing and sand Range of products available in lotions and sprays

First to incorporate concept of “Mexoryl XL which is photostable UVA absorbers • These don’t degrade in sunlight • Photo stability specially important for a product developed as sunscreen moisturizer • Mexoryl maintains its sun filtering capacity even after 24 hours

Adheres to strict pharmaceutical and industrial standards There is something for all

Established players like Garnier & Lakme Resistance to cosmetic product usage for men and children Lack of knowledge especially regarding after sun products Underrepresented in some growth markets Lack of advertising, collaboration and use of brand ambassadors like other brands

Stagnant top line growth i.e. sales • Competition • Overdependence on some markets

Indian Pharmacies not seen as retail shopping points have little display space • Vichy being distributed through 30 pharmacies in India

Absence of national pharmacy chain or big brand which matches Vichy’s positioning

India: • Tropical climate • Large population

Penetration: • Semi-urban and rural • Males and kids market

Economy and cultural polishing: • Booming economy, increasing income • The concept of Metro sexual Man who wants to look good

Competitors: • Currently in stores like Nivea, Lakme • Own stores: Body shop, Shehnaaz Hussain • Competition from private labels on rise as they can better cater to local demands

Fear of allergy and reactions especially Melanoma Grey market cosmetics from Dubai and Singapore

Mature and concentrated market Increasing packaging costs

Marketing Budget

Magazines – Tourism and Woman oriented

NewspapersNewspapers read by SEC A urban

Radio- Health and Women talk shows

Television- Prime time and Afternoon slot

Outdoor Promotion like hoardings and posters

Salesman Expenses- Commission on sales to salesmen and retailers, Salaries, etc

Free Samples

Promotional expenses like quizzes and contests in malls, coupons, etc

The product will be in maximum demand in the months of March end to June and then October to mid November.

Therefore advertising and sales promotion should be at its peak in the months of March to May and then September and October. The monsoon and winter months will also see sales but at a lower level so advertising will still be required.

Product mainly targeted at urban women of SEC A and B in India

In addition men and children form part of the target group

Size of the market may be Rs 55-60 crores

Assuming 20% share we have sales of around Rs 11 crores

Mode

Apr-Jun

Jul-Sep

Oct-Dec

Jan-Mar

TOTAL

Television

7200000

3200000

3700000

3400000

17500000

Radio

2450000

550000

800000

800000

5000000

Magazine

5600000

1000000

1800000

1600000

10000000

Print

2450000

550000

800000

800000

5000000

Outdoors

4500000

700000

800000

1500000

7500000

22200000

6000000

7900000

8100000

45000000

TOTAL

Mode

Apr-Jun

Jul-Sep

Oct-Dec

Jan-Mar

TOTAL

Commission

2845000

2040000

2000000

1615000

8500000

Free Samples

2650000

750000

600000

1000000

5000000

Promotion Expense

1325000

375000

300000

500000

2500000

TOTAL

6820000

3165000

2900000

3115000

16000000

Item

Apr-Jun

Jul-Sep

Oct-Dec

Jan-Mar

TOTAL

Sales

38030000

27240000

26680000

21550000

113500000

Production Cost

12562500

9000000

8812500

7125000

37500000

Advertising

22200000

6000000

7900000

8100000

44200000

Selling and

6820000

3165000

2900000

3115000

16000000

(3552500)

9075000

7067500

3210000

15800000

Distribution

Profit

Thank You