RAMSTORE & GILLETTE Oral Care Category Management Project. Anton Voichik National Key Account Manager Kirill Liseev Oral Care Business Director

Transcription

1 RAMSTORE & GILLETTE Oral Care Category Management Project Anton Voichik National Key Account Manager Kirill Liseev Oral Care Business Director

2 Agenda Oral Care Category Review Russia market review Supermarket channel dynamics Oral Care Category Management Project Joint Business Planning Agreement to proceed Analysis Implementation Review Future Collaboration

3 Toothbrush Market Review

4 Global Market Share Leadership 34% Value Shares: Manual - 22% (#1) Power - 48% (#1) Rechargeables 70% (#1) Battery 30% (#2) Refills - 73% (#1)

5 Oral-B: Clear Global Leader Oral-B Global Market Share Other 23% J&J 4% Oral-B 34% SKB 7% Unilever 6% Colgate 17% P&G 6%

6 Toothbrush Market Size - Russia MM units Market size has grown significantly over past years In 2003, category growth has slowed down

7 Toothbrush Market Segments - Russia Low price segment is still the largest in volume Premium segment is the clear contributor in value 92 MM toothbrushes 56 MM USD Volume % Value % Low Price Mid Price Premium Price

8 Toothbrush Segment Development Continuous upgrading of market during past three years % JF 2001 JA 2001 JF 2002 JA 2002 JF 2003 JA 2003 JF 2004 Low Price Mid Price Premium Price

9 Value Share Trends - Russia 35 Oral B continues to achieve record market share growth while Colgate is leading with strong position JF 01 JA 01 JF 02 JA 02 JF 03 JA 03 JF 04 Avg 01 Avg 02 Avg 03 Colgate Avg.Oral-B share Oral-B GSK

10 Importance of KOBs Total Toothbrushes Oral-B JF 2004

11 Toothbrush Market Size - Moscow Supermarkets 1000 units Market size has grown significantly over past years

12 Manual Value Share Trends Moscow Supermarkets Strengthening Leading Position JF 01 JA 01 JF 02 JA 02 JF 03 JA 03 JF 04 Oral-B Avg.Oral-B share Colgate GSK Source: AC Nielsen Russia National

13 SO 2002 ND 2002 JF 2003 MA 2003 MJ 2003 JA 2003 SO 2003 ND 2003 JF 2004 MA % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % Power Value Share Trends Moscow Supermarkets Strengthening Leading Position

14 Market Assessment Summary Category growth slowing down Strong consumer upgrade to premium products Nationally growth has been driven by distribution expansion Oral-B has strong leading position in manual and power oral care Oral B has the expertise to grow the overall cake and drive oral care category

15 RAMSTORE & GILLETTE Oral Care Category Management Anton Voichik National Key Account Manager

16 Ramstore Oral Care Category Background The category used to grow by double digit numbers YOY until % Chemical 43% Physical The growth was driven by the new stores openings and performance of the power and Oral-B 92% Toothbrush 885% Power 241% Oral-B Oral-B is leading in Toothbrush Category in Ramstore while it is #2 in total Russia

17 4 Step Process Planning And Alignment STEP 1 STEP 2 Category Context Opportunity Identification STEP 3 Opportunity Delivery STEP 4

18 The category management opportunity and the need for data / insight Oral care category in Russia: Category opportunities: Potential category management levers: Category growth slowing down Strong consumer upgrade to premium products Pruchase frequency At store level: Space allocation Product assortment Nationally growth has been driven by distribution expansion Shopper / consumer education at POS Promotion mix On-going education Oral-B has strong leading position in manual and power oral care Oral B has the expertise to grow the overall cake and drive oral care category Footfall General research : Shopper insight

19 Limited availability of the required data Required data/insight to understand impact of...: Retail data at the store level: Space allocation Product assortment Possible sources of information: Limited data environment: Agencies: - Data not complete - Data not ready Promotion mix On-going education... on...: Purchase frequency Trade - up Penetration Footfall Sales force: Retailers: - Too time consuming - Data not shared with suppliers

20 Oral Care solutions 1: Joint Business Plan JBP Gillette Oral Care JBP strategy articulated around the expected category management key growth drivers: Increase the turnover and profit via maximizing the frequency of purchase the trade-up and penetration Shopper and consumer education via the on shelf communication Increase the footfall via the life style images Access to data: Retailer: Data shared with Gillette as preferred suppliers Key data to deliver JBP: Space allocation Product assortment Promotion mix On-going education

21 Oral Care Encompasses a Variety of Categories that Help Consumers Maintain Healthy Mouths Definit ion The Oral Care occasion is the collection of categories that help consumers keep their mouths healthy and beautiful Categ ories Toothpaste Toothbrushes Interdental/Floss Mouthrinse Whitening

22 OC CATEGORY Oral Care Category Chemical Physical Paste Rinse Manual Power Interdental Rechargeable Floss Battery Specialist

23 Category Optimization - Oral Care Get the Category Segment Space Right Get the Assortment Right Get the Promotional Mix Right

24 Get the Category Segment Space Right Opportunities Exist to Grow Category Volume by Right-Sizing Key Sections Based on Ramstore Data Main Aisle Percent Space Allocation Before Recommended Toothpaste Manual Power Kids Floss Rinse

25 Get the Assortment Right Brand Rationalize Important Items Consumers are confused by huge assortment Limited Unique Selling Propositions (USP s) Lower price points devalue the category Out-of-stocks on high volume brands force shoppers to go other outlets Toothbrush Brands portfolio was Reviewed

26 Category Growth Driver/Support Matrix Key Brands Oral-B Colgate Reach Aquafresh Jordan Trisa Dental Professional Support New Product Development Advertising/Media Spending Trade Promotional Spending Consumer Loyalty SKU s in Top 20

27 Oral Care Strategic Partnership Agreement deal with the whole category more focus on physical (brushes + interdental), on premium and value-added brushes include power have a separate dedicated Kids area a unique Ramstore design

28 Oral Care Category Vision 3 Steps : Ensure all products within the consumers consideration set are merchandised together, with appropriate call to action messages at the point of purchase to facilitate the category strategies 1. Attract shoppers to the aisle Paste adjacency is critical - forms total category in the eyes of the consumer 2. Complexity of the selection Consumers take 137 seconds to shop the physical oral care section vs an average of 53 seconds for other HBA categories 26% of physical oral care shoppers walk away from the aisle due to confusion. 3.Facilitate the trade up and frequiency Effective call to action messages Clear segmentation and use of the key brands for easy navigation

29 BEFORE CATMAN: Category Outlook Toothbrush category were underspaced Toothbrush fixture on hooks looked not too attractive Display by brand No dedicated Kids and power section Toothpaste were overspaced No detailed communication at the POP Price tags and price promo communication only

30 Ramstore Oral Care Visibility Elements

31 Oral Care Planogram Recommendation Based on the Ramstore sales data, store level recommendations were prepared

32 CATMAN Implementation Steps #1 Allocate appropriate space for quemical and fisical (Increase space for #2 Introduce more shopper friendly layout and replace hooks by shelves for the toothbrushes #3 Introduce lights to category to attract the shoppers Highlight the sub categories for POC & Kids

33 AFTER CATMAN: Category Outlook

34 Ramstore Oral Care Category Performance Oral Care Category Sales Value BEFORE AFTER 7% 160 Jan03 Feb03 Mar03 Apr03 May03 Jun03 Jul03 Aug03 Sep03 Oct03 Nov03 Dec03 Jan04 Feb04 Mar04 Apr04 May04 Toothbrush Category Sales Value % Oral-B Sales Value Jan03 Feb03 Mar03 Apr03 May03 Jun03 Jul03 Aug03 Sep03 Oct03 Nov03Dec03 Jan04Feb04Mar04Apr04 May04 20% 25 Jan03 Feb03 Mar03 Apr03 May03 Jun03 Jul03 Aug03 Sep03 Oct03 Nov03Dec03 Jan04Feb04Mar04Apr04May04

35 Summary: Project Results & Learnings The appropriate space allocation, ballanced product assortment, the right promotional mix and more pleasant shopping experience can really grow the category value The toothpaste segment did not decline despite of the reduction of the shelf space The maintenance of the agreed planograms and the on shelf availability is vital The evaluation is the key for the future recommendations Understanding the magnitude of the category management and the Oral care project success, Ramenka and Gillette agreed to approach the Grooming Category

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