Bruno De Labar: How new premium categories can generate additional retailer turnover and profit
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How new premium categories can generate additional retailer turnover and profit Reckitt Benckiser Russia February 2011
Transcript of Bruno De Labar: How new premium categories can generate additional retailer turnover and profit
How new premium categories can generate additional retailer turnover and profit
Reckitt Benckiser Russia
February 2011
How new, premium categories build incremental turnover and profit
Add incremental categories to existing big categories:
Fabric Treatment
Build completely new categories:
Automatic Dishwashing
Expand category consumption through new, wider usage
Air Care
3 strategies for HH Cleaning categories
One purchase on top of Laundry Detergent increases the value of the shopper in 2 times
Laundry Detergent* Only
(9 washes)
x 1.8
60** х 3 = 180 RUR
* Premium Laundry Detergent (Key Player #1)** Average shelf price, RUR (AC Nielsen Russia, 2010)
180 RUR
Laundry Detergent* + Vanish Liquid
(9 washes)
320 RUR
Laundry Detergent* + Vanish Powder
(9 washes)
445 RURx 2.5
Laundry Detergent
Laundry Detergent
Laundry Detergent
60** х 3 = 180 RUR 140**
Laundry Detergent
Laundry Detergent
Laundry Detergent
60** х 3 = 180 RUR 265**
Laundry Detergent
Laundry Detergent
Laundry Detergent
One purchase on top of Laundry Detergent increases the value of the shopper in 2 times
Laundry Detergent* Only
(9 washes)
x 1.8
60** х 3 = 180 RUR
* Premium Laundry Detergent (Key Player #1)** Average shelf price, RUR (AC Nielsen Russia, 2010)
180 RUR
Laundry Detergent* + Vanish Liquid
(9 washes)
320 RUR
Laundry Detergent* + Vanish Powder
(9 washes)
445 RURx 2.5
Laundry Detergent
Laundry Detergent
Laundry Detergent
60** х 3 = 180 RUR 140**
Laundry Detergent
Laundry Detergent
Laundry Detergent
60** х 3 = 180 RUR 265**
Laundry Detergent
Laundry Detergent
Laundry Detergent
One purchase on top of Laundry Detergent increases the value of the shopper in 2 times
Laundry Detergent* Only
(9 washes)
x 1.8
60** х 3 = 180 RUR
* Premium Laundry Detergent (Key Player #1)** Average shelf price, RUR (AC Nielsen Russia, 2010)
180 RUR
Laundry Detergent* + Vanish Liquid
(9 washes)
320 RUR
Laundry Detergent* + Vanish Powder
(9 washes)
445 RURx 2.5
Laundry Detergent
Laundry Detergent
Laundry Detergent
60** х 3 = 180 RUR 140**
Laundry Detergent
Laundry Detergent
Laundry Detergent
60** х 3 = 180 RUR 265**
Laundry Detergent
Laundry Detergent
Laundry Detergent
The potential for this market in Russia: +7,0 bn RUR retail sales
Consumption
x2(+ 3,5 bn)
Washes per week
4.5
3
Consumption frequency**
6
40%
65%
96%
0% 20% 40% 60% 80% 100%
% of HH using category*
Laundry detergents
Fabric softeners
Fabric Treatment
Driving PENETRATION
Penetration
x2(+ 3,5 bn)
IncreasingCONSUMPTION
* Source: GFK Russia, 2009** Source: TNS Russia, U&A 20092009 FT Sales 3,5 bn RUR (AC Nielsen Russia, Total National)
More Homes
More Washes
The potential for this market in Russia: +7,0 bn RUR retail sales
Consumption
x2(+ 3,5 bn)
Washes per week
4.5
3
Consumption frequency**
6
40%
65%
96%
0% 20% 40% 60% 80% 100%
% of HH using category*
Laundry detergents
Fabric softeners
Fabric Treatment
Driving PENETRATION
Penetration
x2(+ 3,5 bn)
IncreasingCONSUMPTION
* Source: GFK Russia, 2009** Source: TNS Russia, U&A 20092009 FT Sales 3,5 bn RUR (AC Nielsen Russia, Total National)
More Homes
More Washes
We actively build the market through strong advertising and co-marketing programs
VANISHFT
LD #1 LD #2 LD #3 LD #4 LD #5
Laundry Detergent Key Players
Media Weights 2010, TRP's In-Store Shelf Extension Programs
Expand FT space to increase visibility and remind shoppers to buy
• Shelf share for FT = shelf share for FS (equal value sales)• Signage for category highlight and easy navigation• Full line stand displays in high traffic areas
Increase cross purchase with Laundry Detergents• Hang (parasite) displays in LD section
* Source: TNS Russia, 2010
We actively build the market through strong advertising and co-marketing programs
VANISHFT
LD #1 LD #2 LD #3 LD #4 LD #5
Laundry Detergent Key Players
Media Weights 2010, TRP's In-Store Shelf Extension Programs
Expand FT space to increase visibility and remind shoppers to buy
Increase cross purchase with Laundry Detergents
* Source: TNS Russia, 2010
How new, premium categories build incremental turnover and profit
Add incremental categories to existing big categories:
Fabric Treatment
Build completely new categories:
Automatic Dishwashing
Expand category consumption through new, wider usage
Air Care
3 strategies for HH Cleaning categories
One purchase on top of ADW Detergent increases the value of the shopper in 3.5 times
Hand dishwashing Only
x 3.7
71** х 3 = 213 RUR
** Average shelf price, RUR (AC Nielsen Russia, 2010)
213 RUR
807 RUR
1049 RURx 4.9
Hand Dishwashing
Liquid H.D. L. H.D.L.
807 RUR**
1049 RUR**
ADW System
ADW Multifunction
Automatic Dishwashing – a category in its baby years … but with mid/high value consumers
• In Russia - 52 mio households
• 9 from 10 housewives wash dishes daily by hands*
*U&A TNS, Russia, 2010 ** Rosstat, 2009
• ADWD market is growing in a long run (+9% growth ’10 vs ’09), healthy recovering after the crisis
• Expected market growth 2011 +15%
Automatic Dishwashing – a category with immense potential
AUTO DISHWASH PRODUCTS
1 435 8391 248 556
1 129 808918 728
0
500 000
1 000 000
1 500 000
2 000 000
2008 2009 2010 2011 FC
+15%+11%+23%
6690
4999
6313
0
1000
2000
3000
4000
5000
6000
7000
8000
2010
N 1 Laundry detergent
N1 Hand Dishw ashing
Finish (Automatic Dishw ashing)
Finish is the only brand investing in ATL and growing ADW category
• Finish has SOV 100% in this category investing in TV practically equally to the
biggest advertiser in Laundry Detergent category and 30% bigger than biggest
advertiser in Hand Dishwashing category.• Finish TVC is on air every year with positive tendency to increase GRP and NR of
contacts• Cooperation, attractive call-to-action proposal of ADWM with WGM/WGS in each TVC
TRPs
We create demand outside the Food Retail Trade – by stimulating sales of Dishwashing machines
New specific March, 8 copy (in partnership with BSH)
We create demand outside the Food Retail Trade – by stimulating interest and sales of Dishwashing machines
• Mechanics of promo in mass retail: Buy RB products participate creative contest Win a Dishwasher Washing Machine
How new, premium categories build incremental turnover and profit
Add incremental categories to existing big categories:
Fabric Treatment
Build completely new categories:
Automatic Dishwashing
Expand category consumption through new, wider usage
Air Care
3 strategies for HH Cleaning categories
Air Care category in Russia today is about fighting bad odors
70%
30%
AEROSOLS ALL OTHERS
Source: Nielsen, FY2010
Air Care category tomorrow is bringing nice fragrance creating special atmosphere at home
Russia Air Care market vs France and UK
AIR CARE MARKET, SALES IN MLN, GBP
340
262
100
0 100 200 300 400
UK
FRANCE
RUSSIA
UK FRANCE RUSSIA
0,70
4
5,5
per capita
HUGEPOTENTIAL
France & UK, Air Care split
16% 2%
84%98%
0%
20%
40%
60%
80%
100%
FRANCE UK
AEROSOLS OTHER FORMATS
Sales in T RUB, Russia
0
1000000
2000000
3000000
4000000
5000000
2009 2010
AEROSOL OTHER FORMATS
14%
29%
Source: Nielsen, FY2010
HUGEPOTENTIAL
Air Care shelves today
Air Care shelves of the future
Air Care formats diversity to meet all consumer needs
Luxury fragranceAutomatic Spays
Electrical (plug in)
Aerosols of new generation 100% pure air
Nature-Inspired Fragrance
Candles
How new premium categories can generate additional retailer turnover and profit
Reckitt Benckiser Russia
February 2011
