POND’S MENBrand Extension Analysis

MEN’S GROOMING CATEGORY

Men’s Grooming has reached a value INR 46.8 billion growing at over 21%

All leading manufacturers expanded their men’s

grooming portfolio in 2013-14

Increased availability, desire to look trendy along with increased incomes has led to higher category growth

Men’s Grooming

expected to have a CAGR of over 10 to reach 75.4 billion INR

by 2018

SKINCARE CATEGORY

Over 50% market share in skincare with the next biggest player having a 6% share

UNDISPUTED LEADER!

75,315 mn INR

Have your pie and eat it too!

Category Size

19.7%

FACIAL CLEANSING

Personal Care Split Up by region

Around the world Facial Cleansing leads the way in personal care and more so in South East Asia with 93% spending on facial care

Mens FC Female FC Male FM Femsle FM Female Fairness FM

Female AA FM

Segment Growths55%

MAT 13 MAT 140

20406080

100120

Facial Cleansing Shares

Male FC Female FC

% Shares

Male FC Shares up from 11% to 29% in 2014

Men’s Facial Cleansing is the fastest growing segment in facial care

ABOUT THE COMPANYHINDUSTAN UNILEVER

Net sales of INR 258.1bn and profits of INR 30 bn in previous financial year

Leader in the overall beauty and personal care in India in 2013 with a 30% market share

Focus on expanding its personal care portfolio through new launches

Leader in 7 out of 10 main categories

Widest product portfolio with strong presence in some of the fastest-growing categories

THE PONDS BRANDGet the expert to look after your skin

Launched in 1846 as healing cream in the U.S.

In 1886 Pond’s began advertising nationally

By 1910 Pond’s Vanishing Cream and Cold Cream were well established brands

In 1920s the company targeted royalty with Queen Marie of Romania an obsessed user cum sponsor

In 1995 Ponds merged with the Cheesebrough manufacturing company

In 1987 Cheesebrough-Ponds was acquired by Unilever

Since then the company has expanded to Facial Moisturizers, BB creams, Facial Cleansers and Makeup removers

HOWEVER!Pond’s had always been a feminine brand until….

THE BRAND EXTENSION

A Facial recharger for men with coffee bean extracts…

Pushed up the share of Pond’s brand to over 6% in the skin care market !!

WHY IT MAKES SENSE?Skin care one of the fastest growing categories

Men’s category is rapidly increasing share in skin care

Consistent with HULs strategy of expansion in personal care

HUL being the category leader is expected to lead the way with innovations

Facial Care is an obsession in South east Asia

PRODUCT

A foam based facial cleanser..

with coffee bean extracts…

and menthol….

which helps dull and tired men…

GET FULLY RECHARGED!

PRICERs. 95 for 50 gmsRs. 160 for 100 gms

COMPETITIVELY PRICED

Rs. 72 to 100 for 50 gmsRs. 152 to 195 for 100 gmsRs. 400+ for 100 gms for specialist products

Prices lie in the Popular segment

Higher than the Mass segment price of Himalaya

Lower than the Premium segment price of L’Oreal

PLACE

Modern Trade

General Trade

E-Commerce Cosmetics Stores

TIER 1 AND TIER 2 CITIES ACROSS INDIA

ACROSS CHANNEL

S

PROMOTIONSA MIX OF..

Television Commercials

Promotional Events Online Media

A SUCCESSFUL MARKETING CAMPAIGN!

8-10% of Projected Sales Budget for Advertising!

POSITIONING

Target segment: 18-35 year old males; students and working professionals; in Tier 1 and Tier 2 cities

A face wash with energizing coffee bean extract & cooling menthol..For men who want bright + energized looking skin…

Hectic Lifestyle Busy all day long

Cares more about his skin and appearance than his father

Increased incomes; willing to spend more to look attractive

Competitive Frame of Reference: Men’s facial Cleansing Market

POSITIONING

POIN

TS O

F D

IFFE

REN

CE

POIN

TS OF PARITY

• Has natural coffee bean extracts

• Contains Menthol

• Full of antioxidants

• UV Protection• Makes skin

smooth• Foam based

cleanser• Clears excess oil

MAIN DIFFERENTIA

TOR

PRICE

CLEANSING ACTION

L’Oreal

Garnier

Nivea

Pond’s

Himalaya

SourcesSlide 1 www.pondsmen.co.in (retrieved on 30-06-2015)Slide2 Euromonitor (GMID)Slide 3 Euromonitor (GMID); www.hul.co.inSlide 4 www.hul.co.in (retrieved on 01-07-2015)Slide 5 www.hul.co.in (retrieved on 01-07-2015)Slide 6 http://www.fundinguniverse.com/company-histories/ChesebroughPonds-USA-Inc-Company-History.html

Slide 7 www.pondsmen.co.in (retrieved on 01-07-2015)Slide 8 Company Annual Reports; Investor RelationsSlide 9 www.pondsmen.co.in (retrieved on 06-07-2015)

Slide 10 www.amazon.com (retrieved on 06-07-2015)Slide 11 www.hul.co.in (retrieved on 06-07-2015)Slide 12 www.pondsmen.co.in (retrieved on 09-07-2015)

Slide 13 www.pondsmen.co.in (retrieved on 07-07-2015); www.hul.co.in

Slide 14 www.pondsmen.co.in (retrieved on 07-07-2015); www.hul.co.in