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    INTERNATIONAL

    BUSINESS CASEJEUX DU COMMERCE 2012

    UNIVERSIT LAVAL

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    INTERNATIONAL BUSINESS CASE JDC2012

    LEVERAGING COMPETITIVE INTELLIGENCE1

    Written by :Procter & Gamble Canada

    Since 1837, P&G has built a rich heritage of touching consumers lives with brands that make life a little

    better every day. P&G has grown to a multi-billion company by leveraging consumer knowledge,

    innovation, brand- building, go-to-market capabilities and scale. In addition to new business creation

    with brands like Tide, Crest and Pampers, Febreze and Swiffer, acquisitions allowed P&G to grow and

    refine its mission over the years. Since the 1980s, the company has acquired several brands such as

    Vicks, Olay, Tampax, Clairol and Pantene, fortifying its presence in beauty and personal care. In 2005,

    P&G acquired Gillette and added to its portfolio Duracell, Gillette, Oral-B and Braun.

    Procter & Gamble manufactures and distributes more than 300 brands in 180 countries around the

    world. With more than 138,000 employees working in 80 countries, P&G recorded sales of $82.5 billion

    in 2011.

    Context

    The Global Market for Hair Care has been showing steady growth over the past five (5) years and

    competition is heating up in all regions around the world. While developed markets (North America

    and Western Europe) account for nearly half of the worlds beauty and personal care industry, it has

    been showing low-digit growth over the past five (5) years. Demand is growing fast in Asia, Eastern

    Europe, the Middle East and Latin America (see Appendix). The category counts two main productsegments:

    i)hair care (80% of sales, 6% growth over past five (5) years)

    ii) colour care (20% of sales, 5% growth over past five (5) years)

    1We would like to thank Procter&Gamble Canada the elaboration of this case. The present document should not be

    considered as reflecting the opinion or position of Procter&Gamble Canada or the author, with regards to parts or the

    totality of the issues (including products, services, practices and other elements of the case, implicit or explicit) addressed

    or presented whatsoever. The statements included do not consist in recommendations, neither are formulated to prompt

    or dissuade from an investment, whatsoever. Moreover, this case does not represent a reliable source of data on the

    company, its activity sector or the general business environment. Indeed, several elements included have been altered,partly developed or otherwise modified to meet the goals of the present situation. Besides, some data might come from

    secondary sources, and may have been treated or transformed for practical or competitive reasons. This case does not

    constitute an example of good or bad management practices. It was written in an entirely pedagogical objective: to

    stimulate discussion and analysis in an academic context.

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    Salon Hair Care remains a relatively small segment globally (1% of total sales, -1% growth over past 5

    Years) and represent high margins for manufacturers and retailers, especially in North America and

    Western Europe where it is over-developped.

    P&G has successfully expanded in core white space markets and has become the number one hair care

    manufacturer in the world (Euromonitor, 2010). Acquisitions (Richardson-Vicks, Clairol), vertical

    expansion in both the salon segment and entry-tier, as well as early presence in white space markets

    has fuelled P&G growth in Hair Care and Hair Colour. P&G now counts 13 Hair Care brands (see

    Appendix) in its portfolio.

    Assignment

    You have just been hired in the Global Hair Care Category Team, managing global strategy and

    innovation for several top hair care brands, such as Pantene, Head & Shoulders and Herbal Essences.

    Your first project is to identify opportunities for the Hair Care category in the next 5 years.You received, this morning, a report from the Competitive Intelligence team to help you gain a picture

    of overall activity in this category (see attached) and your marketing director would like to understand

    your recommendations in the following areas:

    What are the two (2) or three (3) biggest opportunities (globally or regionally) and how can we achieve

    them?Are there any competitive launches that pose a high risk to our business? Do we need to take

    action to defend (e.g. re-focus a brand, expand a brand geographically, aquire a competitor)?

    Be sure to quantify the size of the opportunities and risks and provide rationale for all your

    recommendations using the data provided in the the CI report and appendix.

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    Global Hair Care Competitive Intelligence (CI) Report

    (information has been modified for the needs of this case study and does not reflect latest intelligence)

    UNILEVER

    Unilever continues to focus on global Sunsilk brand. Unilever continues to drive innovation on itsglobal brand Sunsilk through product innovation and ad campaigns. As predicted, Unilever recently

    launched the Sunsilk Color Shine range in the U.S. which includes shampoo, conditioner and color

    booster. It has also replaced its present line of Thermasilk shampoo and conditioner with the new

    Sunsilk range called "Thermashine" in January 2007. The new range includes shampoo, conditioner and

    Detangling Shine Spray. The products are to protect hair against damage caused by hair dryers or flat

    irons and retail for US$ 3.59. Unilever has also launched an internet web site in Russia which looks very

    similar to their other global sites and features their shampoo, conditioner and styling ranges. The

    campaign's slogan is "Free to be Different". (Sostav.rv 15th January 2007; FDC reports 4th January2007)

    Unilever expand and build "CLEAR" leadership in Asia and potentially developing a global launchmodel in anti-dandruff. "Clear" has appeared alongside Sunsilk & Dove in the Global Hair Care slideshown during Unilever's Q3 results presentation. With the appointment of Seokhee Won as Global Vice

    President for the brand in June 2006, we see Unilever's strategy and focus on building leadership in

    Asia, developing it as their stronghold and expanding to other regions. We continue to see very strong

    activities behind "Clear" in Malaysia and Singapore as they try to develop a winning business model in

    the clean value seeker and mid-tier anti-dandruff segment. They have launched the brand in China and

    in April 2007 launched "Clear Scalp Oil Control" in India. Trademark registration for Clear conditioner

    and Clear shampoo for Men has also been noted in Indonesia. (The Hindu Business Line 18th January2007)

    Unilever launches "Dove Pro-age" worldwide and continues to invest behind the overall brand. Aspart of the next phase of its Real Beauty campaign, Dove is hoping to change attitudes in the anti-aging

    category with the launch of Pro-Age, a collection of hair and skin care products designed for pre- and

    postmenopausal women. This is the first time Dove has introduced a collection of products

    simultaneously across all categories both in the U.S. and worldwide. Dove's Marketing Director in the

    U.S., Kathy O' Brien, mentioned they have aggressive plans over the next five (5) years and expect to

    double their business again. Their UK Television copy for the range, that aired for the first time last

    weekend, uses naked older women to promote the brand, continuing their "Real Beauty" theme. Dove

    is continuing to drive their overall brand through their advertising campaigns, on-line promotions andinnovations.

    In Russia, Dove advertising has been named one of the best products in 2006. Dove also

    introduced a new line of lightened and dyed hair care products in the market.

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    Uniliver acquires Alberto-Culver.

    On May 10th 2010, Unilever and the Alberto Culver Company jointly confirmed that they had obtained

    the necessary regulatory clearances for Unilever to acquire the Alberto Culver Company. Unilever

    payed $3.7 billion in cash for the Alberto Culver Company, which generated annual sales in excess of1.2 billion (US$1.6 billion) in fiscal year 2010. With the acquisition, Unilever becomes the worlds

    leading company in hair conditioning, the second largest in shampoo and the third largest in styling.

    Alberto Culver Company manufactures, distributes and markets leading beauty care and other

    personal care brands including TRESemm, Alberto VO5, Nexxus, St. Ives, Simple and Noxzema in the

    United States and internationally. It is also the second largest producer in the U.S. of products for the

    ethnic hair care market with leading brands including Motions and Soft & Beautiful. In a previous

    analysts' call Culver confirmed the TRESemm launch into Mexico, following previous launches in

    Argentina and Chile, but said that they did not have"any specific plans for" further geographic

    expansion although they are "investigating several things right now, several markets... We're testing

    some things, we may do some experimentation sometime in the not too distant future". This suggeststhat we should be on the alert for more TRESemm activity in the near future but that their rapid

    geographic expansion may be on hold for a short time. They also shared that they are "in the process

    of launching some new items" within the US Nexxus range and that they are "actively researching

    different [Mergers & Acquisitions] options".

    L'ORAL

    L'Oral continue to focus on US with launch of VivePro Nutri-Gloss range and Studio Line relaunch. As

    predicted, L'Oral have followed the relaunch of their Vive brand as VivePro last year with the launch

    of the VivePro Nutri-Gloss range this month. This completes the global roll out of this highly successful

    initiative; we expect the launch of VivePro styling and anti-dandruff ranges to follow. The US range is

    broader than the global range, featuring seven (7) skus, with three (3) shampoo and conditioner

    collections for different hair types and one (1) treatment product, possibly highlighting another

    digression of the US L'Oral Paris brand from the global strategy or just a tactical measure to secure

    more shelf space. The Studio Line relaunch restages the entire line into black packaging, reducing the

    number of skus from 25 to 16, including two (2) new skus. The range seems to be targeted towards the

    male consumer, with a large proportion (~40%) of the range in gels. The restage involves a price

    increase of over 30%, in line with the 25%-30% increase we saw on the VivePro relaunch last year and

    with L'Oral's overall global strategy to tier up their brands; Fructis seems likely to be the next brand to

    receive this treatment in the US. The US Studio Line restage takes the range into very different

    packaging compared to the relaunches we saw in other markets, including Canada last year, anotherexample of the US L'Oral Paris brand disgressing from the global norm.

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    L'Oral Professionnel launch new colorants line targeting grey hair.

    L'Oral Professionnel have launched a new colorants line in Germany aimed exclusively at grey haired

    salon clients. The "Color Supreme" line consists of 17 shades and claims to provide "perfect coverage

    for hair having 80-100% of white, without mixing". The launch appears to be pure commercialinnovation, possibly as a reaction to the KP relaunch. L'Oral is promoting the launch via a range of

    publications in the German trade press and we hear rumours that the launch may spread to Austria in

    March 2007. Given that L'Oral have launched this line as a stand-alone brand rather than under an

    existing brand (e.g. Majirel), this could signal an intent to broaden the offer for this target group,

    consistent with their corporate focus on the ageing population.

    Review of hair ranges on CCB-Paris website confirms changing role for the site. We recently updatedour review of the direct mail site (Le Club des Crateurs de Beaut), 50% owned by L'Oral. As shared

    in our initiative launch patterns analysis, this site was used by L'Oral as a testing ground although our

    recent thinking is that it has become a more commercial operation. This seems to be confirmed by the

    launch of products very similar to the Elvive Nutri-Gloss initiative, over a year after they were first

    launched in retail and over two (2) years since the concept first appeared in professional salons.

    However, L'Oral have just launched an anti-dandruff treatment on the site that we haven'tbeen seen

    elsewhere. The product (Peeling So Clean!) includes Zinc Pyrithone and is to be used three (3) times

    per week during dandruff crises and before using AD (anti-dandruff) shampoo, suggesting exploration

    of products for broader reapplication or just CCB following L'Oral's overall increasing focus on anti-

    dandruff.

    Other L'Oral news in short.L'Oral are launching a specific collection targeted at women with grey hair under their Garnier Ultra

    Doux brand in France. This is their second move to target specific consumer segments following the

    launch of their ethnic collection last year and is consistent with L'Oral's corporate themes and the

    brand's focus on providing products tailor-made to their diverse prime prospects' needs.

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    KAOKao manages to hold forecast with Q3 sales in line with first half. After poor first half results which

    prompted Kao to lower their full year forecast, Kao's third quarter results enabled them to hold their

    fiscal year forecast unchanged. Sales for the first 9 months were up +25%, in line with the first half andmainly driven by the consolidation of Kanebo. Sales for the consumer division were up +5.3% (incl. FX)

    mainly driven by FX help from overseas sales and underlying sales in Asia and Oceania (+7.4% like-for-

    like); sales were up +3.4% in Japan and +2.5% (like-for-like) in North America and Europe. The

    expansion of Asience into Singapore and a "major renewal in the KMS professional hair care brand" in

    North America and Europe were mentioned as contributors to growth while flat consumer spending

    and prices in Japan and "fierce competition..., mainly in the hair care category" in North America and

    Europe, held back growth. Operating income was down -7% driven by charges relating to the Kanebo

    acquisition and higher raw material costs; excluding the Kanebo amortisation charges, operating

    income was up +12%. Kao also announced changes to their structure, merging their sales companies

    and introducing four new business units, including the beauty care business unit, apparently driven by

    a need to respond to "dynamic shifts due to societal changes" in the Japanese market but probablyalso reflecting their attempts to get the business back on track after the disruption of the Kanebo

    acquisitions.

    SHISEIDO

    Shiseido delivers poor OND results.After beating analysts' expectations in the first half, Shiseido have posted a disappointing sales growth

    of +3.4% for the nine months to end December 2006. Net income fell 17%. Shiseido blamed the weak

    sales on the "sluggish" Japanese market where sales were down -0.9%, a slight decline versus their first

    half sales performance of -0.2%, presumably in part driven by an inability to sustain the strong sharegrowth they experienced with the Tsubaki launch earlier last year. International sales propped up the

    overall company performance, although the weak Yen will have helped. Asia/Oceania was up +30%,

    Americas +12% and Europe +4%. Having raised their fiscal year forecast last quarter, Shiseido kept their

    sales and ordinary income forecasts unchanged at +3.6% and +16% respectively but increased their net

    income forecast slightly driven by lower expected taxes. Shiseido are now halfway through their three

    (3) years plan and will be hoping that this will start to drive faster sales growth in the near future.

    Other Shiseido news in short.Shiseido provided another indication of their increasing focus on China with the launch of its official

    website in China last month. The new website offers links to Shiseido brands, news about the company

    and attempts to attract consumers by providing beauty tips.

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    UPSTREAM/TRENDS/OTHERBumble & Bumble and PureOlogy reviews give insights into premium professional brand businessmodels. Our recent analysis of the L'Oral Krastase brand highlighted the business model behind its

    success in the premium professional care market. Este Lauder's North American Bumble & Bumblebrand also plays in this segment and has experienced strong growth in the US. The brand shows many

    similarities in its business model, including direct-to-salon and selective strategy, strong focus on

    education, business consulting focus and a focus on raising awareness through public relations.

    However, they do not advertise directly to consumers, a key strategy for Krastase. PureOlogy is the

    market leading luxury color care brand in the US. It is distributed to premium salons and spas via

    distributors and uses its simple story of colour protection via sulphate-free products to sell its range to

    stylists and consequently consumers. It has consistent trade advertising and very good public

    relationscoverage but doesn't advertise directly to consumers. PureOlogy has recently announced the

    appointment of a top stylist as International Artistic Director with the intent of taking their education

    offering to the next level.

    Revlon blows budget to air Superbowl ad to promote launch of new Colorist brand.We reported on the expected US launch of Revlon Colourist, a new premium colour brand. The brand

    has now launched, kicking off their campaign with a minute long advert during the Superbowl last

    weekend. With CBS charging as much as $2.6million for a 30 seconds ad, this airing will make a

    significant dent in Revlon's launch budget (estimated at $33million). The brand is targeting the very

    premium of the US colorants market with an SRP of $15.99. This is far above the average pricing for the

    category, even more premium versus L'Oral Paris's recent launch into the premium segment with

    Natural Match (SRP $11.99) and over 3 times the price of any of Revlon's other ranges, all priced in the

    opening price point tier at $3.99-$4.99. We expected the product to contain a colorant and a weekly

    colour refresher but the interesting twist is that the colour refresher is contained within theconditioner, another example of the blurring of product forms. The brand attempts to justify its

    premium price with claims that it will provide "salon quality haircolour" plus a "2-minutes weekly

    colorglaze treatment" and the Superbowl ad featured their spokesperson Sheryl Crow with a lot of

    emphasis that she actually used the product. Given the Revlon's recent poor performance on major

    initiatives, they will be focusing very hard to make the Revlon Colorist launch a success. (PR Newswire

    31st January 2007, Wall Street Journal 30th January 2007- thanks to Tracey Howard-TH - Global

    Haircolor CI Council)

    China competitor C-Bons shares reasons for success and is open to being acquired.Domestic firm C-Bons is a significant player in Chinese market and, according to Euromonitor, is

    number two in the hair care category with its Slek and Maestro brands. Their president shared his

    thoughts on their success in a recent interview. These included a focus on product quality, with their

    products apparently recording blind test wins, a focus on R&D to help provide new concepts and

    products, an interactive marketing approach to avoid having to spend large sums on television, a shift

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    in focus towards direct distribution to supermarkets with specific strategies, including public relations

    (PR), for each channel and a plan to focus more on the growing rural markets. He shared that C-Bons

    has been approached by a number of foreign personal care firms and investing institutions and, while

    they were not in need of any outside capital, they "do not mind mergers or acquisitions, as long as itbenefits the growth of the whole firm". Given that many of their strategies are quite similar to their

    larger rivals, an acquisition seems possible as our major competitors try to establish a stronger

    presence in China. (China Business Weekly 14th January 2007)

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    APPENDIX 1: P&G Hair Care Main Brands

    Brand Description Products

    Rejoice Rejoice has been the top-selling haircare brand inChina for over 20 years. Known as the expert in

    smoothness, Rejoice has gained high recognition by

    Chinese consumers, and was voted The Most Popular

    Foreign Trademark in China by 250,000 consumers

    and experts nationwide.

    Segments: Shampoo, Conditioner, 2in1

    Price tier: Entry-tier

    NIOXIN NIOXIN uses advanced technologies to deliver thicker,

    fuller, denser-looking hair. Our commitment to

    innovation, supported by research, enables us to be

    able to help more than 50% of people worldwide who

    experience thinning hair.

    Segments: Medicated Shampoo, Conditioner,

    Treatment, Styling.

    Price tier: Premium/Salon/Expert

    Aussie Aussie was introduced to the market in 1979, with a

    range exciting formulas containing ingredients from

    Autralia such as Blue Gum Leaves, Australian Custard

    Apple, Quandong, Mint Balm, Wild Cherry Bark andJojoba Seed Oil. The brand is mostly distributed in

    mass retailers and includes shampoos, conditioners,

    treatments an stylers. The brand is present in North

    America and Western Europe.

    Segments: Shampoo, Conditioner, 2in1, Styling.

    Price tier: Entry-tier

    Pantene For more than 60 years, Pantene has offered

    consumers unsurpassed quality in state-of-the-art

    products that have exemplified serious hair care and a

    hands-on approach of achieving beautiful, healthy

    hair. Pantene is one of P&G billion-dollar brands and

    got distributed all over the world since P&G acquired

    it in 1985. It is mainly distributed in mass retailers.

    http://www.google.ca/imgres?q=nioxin+2011&um=1&hl=en&biw=936&bih=517&tbm=isch&tbnid=debibajA-mbELM:&imgrefurl=http://shampooforthinninghair.com/review-of-nioxin-products-for-thinning-hair.html&docid=naZ99HrZeojhAM&imgurl=http://shampooforthinninghair.com/wp-content/uploads/2011/10/Nioxin_System_3.jpg&w=300&h=300&ei=-3bzTqXzFojV0QGI_M2MCA&zoom=1http://www.google.ca/imgres?q=rejoice+hair&um=1&hl=en&biw=936&bih=517&tbm=isch&tbnid=keIrkrQJC9wEpM:&imgrefurl=http://stylishmaleboots.com/fashion/the-new-series-of-grand-public-rejoice-shampoo-olive-oil.html&docid=TM_Q-1Kk8d4-TM&imgurl=http://stylishmaleboots.com/wp-content/uploads/2011/12/rejoice-1.jpg&w=208&h=550&ei=XHbzTsLHPOK90QGk8cW8Ag&zoom=1
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    Segments: Shampoo, Conditioner, 2in1, Treatment,

    Styling.

    Price tier: Mid-tierFekkai A roster of celebrity clientele, explosive press and an

    award-winning product line transformed Frdric

    Fekkai from red-hot hairdresser to luxury lifestyle

    brand by 1995. By 2005, Fekkai expanded the product

    lineup and salon business that exuded his specific

    brand of effortless style. Today, the Fekkai remains a

    category headliner; the ultimate in luxury hair care

    distributed in over 40 countries worldwide. It offers

    salon shampoo, conditioners, treatments and stylers.

    Segments: Shampoo, Conditioner, Treatment, Styling.

    Price tier: Premium/Salon/Expert

    Herbal

    Essences

    Herbal Essences is an entry-tier hair care brand

    distributed all-over the world offering shampoo,

    conditioners, and stylers with scents inspired from

    nature.

    Segments: Shampoo, Conditioner, 2in1, Styling

    Price tier: Entry-tier

    Head &

    Shoulders

    For almost 50 years, Head & Shoulders has provided

    millions of consumers with superior scalp care.

    Introduced in 2007, the proprietary zinc pyrithione(ZPT) formula in Head & Shoulders effectively targets

    the source of dandruff so men and women can feel

    confident that their hair looks great. With full lines of

    shampoos and conditioners, Head & Shoulders

    systems provide the dual benefits of achieving both a

    healthy scalp and great-looking hair. Offering ten

    shampoos and five corresponding conditioners, Head

    & Shoulders has a line to fit the needs of all men and

    women

    Segments: Medicated Shampoo, Conditioner, 2in1.

    Price tier: Mid-tier

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    Wella Throughout the brands history, Wella has earned its

    title as the global authority on hair color. Wella

    Professionals has a strong heritage of outstanding

    leadership in the salon industry. For over 125 years,Wella Professionals has perfected the science and

    beauty of hair, working with scientists and colorists

    worldwide to drive innovation and inspiration for

    salon professionals. Wella Professional is available in

    salon all over the world and the brand just launched

    Wella Pro Series mid-tier offering in Western Europe.

    Segments: Shampoo, Conditioner, Treatment, Styling.

    Price tier:

    Wella Professional: Premium/Salon/Expert

    Wella Pro Series: Mid-tier

    Sebastian Sebastian offers professional Hair Care (Shampoo,

    Conditioners, Treatments, Styling) and Colour

    products and services around the world. Sebastian is

    distributed in North America, Western Europe and

    Asia.

    Segments: Shampoo, Conditioner, Treatment, Styling

    Price tier: Premium/Salon/Expert

    Sassoon By the early 1980s, Vidal Sassoon, a recognized British

    hair-dresser, sold his name to manufacturers ofhaircare products and the multinational Procter &

    Gamble was applying his name to shampoos and

    conditioners sold worldwide. Entry-tier products sold

    in mass markets were discontinued in the 1990s.

    Today, the brand offers salon hair care solutions,

    appliances and services in North America and

    Western Europe.

    Segments: Shampoo, Conditioner, Treatment, Styling

    Price tier: Premium/Salon/Expert

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    APPENDIX 2: Unilver Hair Care Main Brands

    Brand Description Products

    TRESemm Started in Salons in 1947, TRESemm has now

    become a salon-inspired brand sold in mass channels

    after it was bought by Alberto in 1968. Unilver

    acquired Alberto in 2011.

    Segments: Shampoo, Conditioner, 2in1, Styling

    Price tier: Mid-tier

    Sunsilk

    Hazeline

    Sunsilk provides everyday hair solutions. It is

    distributed in 80 countries around the globe.

    Segments: Shampoo, Conditioner, 2in1, Styling

    Price tier: Entry-tier

    Dove Dove provides a wide range of cleansing and personal

    care products for your skin and hair. Dove started its

    life in 1957 as a beauty soap bar and expanded in Hair

    Care in the 1990s. It also has introduced a line for

    men in 2010.

    Segments: Shampoo, Conditioner, 2in1, Treatment,

    Styling

    Price tier: Mid-tierLux Similar to Dove, Lux started as a soap, but the range

    now includes shower gels, bath creams and a range of

    hair care products such as shampoos, conditioners

    and treatments. Lux is distrubuted in 80 countries,

    mostly in Asia, Middle East, Brazil.

    Segments: Shampoo, Conditioner, 2in1, Treatments.

    Price tier: Mid-tier

    Axe

    LynxEgo

    Axe is a male personal care brand offering bodywash,

    deodorant, shampoo, conditioner and hair stylingproducts. The European launch of the deodorant was

    followed by a great success in Latin America and

    North America and had a moderate impact in Asia and

    Africa.

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    Segments: Men Shampoo, Conditioner, 2in1, Styling

    Price tier: Mid-tier

    Nexxus Nexxus is a salon hair care brand founded in 1979before getting acquired by Unilver.

    Segments: Shampoo, Conditioner, Treatment, Styling

    Price tier: Premium/Salon/Expert

    Clear Clear is a hair and scalp care brand introduced by

    Unilver in Asia and now expanding in other regions. It

    offers products for both men and women.

    Segments: Medicated Shampoo, Conditioner, 2in1

    Price tier: Mid-tier

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    APPENDIX 3: LOral Hair Care Main Brands

    Brand Description Products

    LOralParis

    The LOral Paris brand encompasses the four majorbeauty categories haircolour, cosmetics, haircare,

    and skincare and includes such well-known brands

    as Superior Preference, Natural Match, and

    Couleur Experte haircolours; VIVE Pro; Dermo-

    Expertise skin care, including Advanced Revitalift,

    Age Perfect, Men Expert, Skin Genesis, Sublime Glow

    and Sublime Bronze; and LOral Paris Cosmetics,

    including Colour Riche, True Match, Bare Naturale,

    and Wear Infinite collections, Voluminous, Double

    Extend, Telescopic, and Volume Shocking

    mascaras, among many others, and the HiP high

    intensity pigments line.

    LOral Paris Hair Care is distributed globally.

    Segments: Shampoo, Conditioner, 2in1, Treatment,

    Styling

    Price tier: Mid-tier

    Garnier Created in 1904, the Garnier brand has become a

    large player in the beauty industry by offering women

    and men Skin Care, Hair Care, Hair Colour inspired by

    natural ingredients. It is now distributed in over 70

    countries.

    Segments: Shampoo, Conditioner, 2in1, Treatment,

    Styling

    Price tier: Entry tier

    Others LOral Professional, Luxury and Active Divisions alsooffers the following brands:

    LOral Professionel

    Krastase

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    Redken

    Matrix

    Pureology

    MizaniShu uemura art of hair

    Kiehl`s

    Vichy

    The Body Shop

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    $MM USD P5 Y CAGR $MM USD P 5Y CAGR $MM USD P5Y CAGR $ MM USD P5 Y CAGR $MM USD P5Y CAGR $ MM USD P5 Y CAGR $MM USD P5Y CAGR $ MM USD P5 Y

    eauty and Personal Care 381,967 6% 101,834 8% 6,274 7% 97,862 3% 25,803 8% 17,704 10% 67,789 2% 32,227

    Hair Care 67,568 6% 18,076 8% 955 6% 15,462 2% 4,658 8% 3,229 10% 11,530 0% 7,381

    Shampoos 23,131 8% 8,097 11% 287 4% 4,761 2% 1,911 9% 1,056 10% 2,475 2% 2,398

    Medicated Shampoos 729 3% 161 10% 14 7% 180 1% 55 11% 35 2% 226 -1% 34

    Standard Sha mpoos 22,402 8% 7,936 12% 273 4% 4,581 2% 1,856 8% 1,021 10% 2,249 2% 2,365

    2-in-1 Products 2,956 -2% 436 -17% 8 0% 780 2% 296 2% 417 7% 592 1% 280

    Conditioners 13,747 8% 4,475 10% 208 4% 2,355 3% 490 8% 597 12% 1,762 2% 2,048

    Colourants 12,256 6% 1,953 7% 196 10% 3,104 2% 1,154 9% 438 12% 1,938 1% 1,892

    Hair Loss Treatments 681 7% 433 7% 14 2% 89 7% 4 8% 10 7% 116 6% 11Perms and Relaxants 1,002 5% 74 0% 0 -17% 95 -1% 36 -1% 160 7% 185 -1% 252

    Salon Hair Care 4,634 -1% 614 6% 124 6% 905 1% 44 11% 153 2% 2,696 -3% 58

    Styling Agents 9,161 3% 1,995 4% 119 6% 3,374 0% 723 5% 400 10% 1,766 1% 442

    Nor th Ameri ca La ti n Ameri

    Source: Euromonitor, 2005

    Market Sizes By Region and Segment

    World Asia Pacific Australasia Western Europe Eastern Europe Middle East & Africa

    APPENDIX 4

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    World As ia Pacific Australas ia Eastern Europe Latin America Middle East & Africa North America Western

    cter & Gamble Co, The 19.8 19.1 24.8 20.4 16.4 21.3 25.0 19.

    antene 7.1 7.0 10.0 4.7 6.2 8.6 8.8 7.1

    ead & Shoulders 3.6 4.5 3.8 4.1 3.0 4.2 3.6 2.9

    erbal Essences n/a n/a n/a n/a n/a n/a n/a n/a

    Wella 3.3 1.1 3.2 5.9 5.5 4.9 1.1 4.6

    lairol 3.0 1.2 7.8 1.3 1.4 2.7 8.4 2.7

    idal Sassoon 0.5 1.8 - 0 0 0 - 0.2

    ussie 0.2 0.0 0.0 0.0 0.0 0.0 0.8 0.5

    ebastian 0.1 0 0 0 0 0 0.7 0

    al Groupe 17.5 3.6 23.2 14.9 14.7 13.6 25.1 31.

    'Oral Paris 7.8 1.9 7.5 7.5 8.1 4.6 6.7 16.

    arnier 5.4 0.7 8.0 6.0 6.3 2.7 5.5 10.

    Matrix 0.7 0.0 0.0 0.0 0.0 0.0 3.9 0.1

    edken 0.6 0.0 2.2 0.0 0.0 0.3 2.7 0.3

    'Oral Professionnel 0.4 0.5 0.0 0.2 0.1 0.7 0.2 0.6

    rastase 0.3 0.1 3.0 0.0 0.2 0.3 0.0 0.7

    ever Group 12.7 14.8 18.7 6.1 16.5 13.6 13.4 7.8

    unsilk 4.4 2.6 7.4 2.4 11.9 6.9 0.9 2.1

    ove 2.0 1.8 2.0 1.4 2.7 1.9 1.9 2.0

    ux 1.0 3.8 0 0 0 0 0 0

    RESemm 0.9 0 3.6 0 0.1 0.4 3.6 0.8

    lear 0.8 2.3 0 0.5 0 1.4 0 0.2

    uave 0.7 0 0 0 0.3 0 3.6 0

    lberto VO5 0.6 0.4 3.2 0.0 0.4 0.4 0.9 0.8

    exxus 0.2 0.0 0 0.0 0 0.0 1.3 0.0

    azeline 0.1 0.4 0.0 0.0 0.0 0.0 0.0 0.0

    xe/Lynx/Ego 0.0 0.0 0.0 0.0 0.0 0.0 0.3 0.0

    kel AG & Co KGaA 5.0 1.3 13.0 18.4 1.2 3.8 0.9 11.

    Corp 2.8 7.4 0 0 0 0.2 1.5 2.3

    eido Co Ltd 1.8 6.5 0 0 0 0 0.4 0

    ersdorf AG 1.6 2.2 0 3.5 0 1.8 0 3.0

    gate-Palmolive Co 1.5 0.8 4.1 1.1 4.8 1.0 0 0.6

    n Products Inc 1.1 0.2 0.6 2.8 3.0 0.4 0.4 0.4

    n Paul Mitchell Systems Inc 1.0 0 0 0 0 0.1 5.5 0.1

    nson & Johnson Inc 0.9 0.4 1.7 0.7 0.5 0.8 1.9 1.2

    ate Label 1.7 0.7 0.8 1.0 0.3 0.1 1.3 5.2

    ers 19.1 15.8 9.5 19.2 20.4 21.7 11.5 10.

    Manufacturer and Brand Retail Shares (%) By Region

    Source: Euromonitor Brand Sha

    APPENDIX 5