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Ecr russie gb Presentation Transcript

  • 1. Insight Information in Category Management Co-operation Xavier FILOU General Manager of Corporate Trade Relations L’OREAL Copresident ECR France
  • 2. 2009 Key Figures World’s number 1 cosmetics group 130 countries 23 international 67,500 employees brands(1) 17.5 billion euros of sales in 2008 674 patents registered in 2008 (1) Brands with annual sales of more than 50 million euros.
  • 3. A Pure Player in Beauty Present in 4 key distribution channels Hair salons Mass market Selective Pharmacies
  • 4. A resilient cosmetics market… Annual growth rate of + 4.5 % over the last 15 years +5.5% +3.0% 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 (1993 – 2008* - Annual growth rate) Excluding soap, toothpaste and razors. Provisional estimates for 2008. Source: L’Oréal estimates
  • 5. World’s number 1 cosmetics group WWD Beauty Biz Ranking Sept. 2009 30 2008 Sales Sales in billion US dollars 25,81 « Beauty’s Top 100 » 25 in US $ 19,8 20 15,55 15 10 7,84 7,6 7,03 6,49 5,8 5,56 4,43 5 0 L’Oréal Unilever * Avon Shiseido * Kao Corp.* Procter Estée Beiersdorf Johnson Chanel * & Gamble * Lauder & Johnson * * estimates
  • 6. Constantly improving its worldwide positions L’Oréal market share* 2000–2008 Based on estimates of the worldwide cosmetics market updated in 2007 15.8%** 15.2% 14.3% 13.6% 13.8% 13.2% 12.4% 11.7% 11.0% 2000 2001 2002 2003 2004 2005 2006 2007 2008 * Excluding soap, toothpaste and razors. Source: L’Oréal estimates. ** 2008 with YSL Beauté over a full year
  • 7. A unique portfolio of strong and complementary brands Professional Products MIZANI Consumer Products Luxury Products Active Cosmetics The Body Shop
  • 8. Our ambition: double our consumer base 2.5 billion X2 1.2 billion
  • 9. Accelerated urbanisation: … 60% of the population will be city-dwellers in 2020
  • 10. Women over 60 years old spend twice as much on facial skincare as women under 25 years old € 87.3 X2 € 25.1 < 25 years > 60 years Average skin care expenses per consumer in France, by age Source: TNS Worldpanel France - 2008
  • 11. Men: the potential of the new generation Cleansing Moisturizing Products users (%) day cream users (%) 30 % 23 % 17 % 15 % 20 – 29 50-59 20 – 29 50-59 years old years old years old years old Cosmetics’ usage, by age and by category * H&B Survey - 2005 European Health & Beauty Survey – Men - 2007 - IPSOS
  • 12. Accessible innovation 1 Increasing Opening up new categories our 2 consumer Accelerating base 3 globalisation Strengthening business drivers 4 Reducing costs and streamlining organisational structures 5 5 strategic thrusts
  • 13. Breakthrough innovations at the heart of each market 14
  • 14. Breakthrough innovations at the heart of each market 15
  • 15. Breakthrough innovations at the heart of each market 16
  • 16. Category Management at L’OREAL today
  • 17. The explanatory factors of the Category Management birth  Markets complexity – New products, growing segmentation  Necessity to develop markets, then growth, and to optimize assortment  Evolution of purchasing behaviors – A more and more informed, volatil, fickle , and clever purchaser. – Planned, timely, immediate, conditionned, identified purchases...  Necessity to fit to trends consumption  System of information explosion – Scanning, panels, loyalty card…  New information to use Today, Category Management is a tool of differenciation, in full transformation. It is a strategic function of General Management
  • 18. N°1 worldwide, we are bearer of responsabilities vis-à-vis consumers and retailers Category Management Scope of Actions The Hygiene-Beauty Expertise: Beauté :  L’expertise Hygiène -To Définirandexprimer la strategic vision of L’OREAL on HB l’HB - define et express the vision stratégique de L’Oréal sur Vision -To anticipate market evolutions, distribution changes and competitor’s initiatives globale - Anticiper les évolutions de marchés, les mutations de la -To develop partnerships on HB department with our customers distribution et les initiatives des concurrents - Développer des partenariats sur le rayon HB avec nos clients  La stratégie catégorielle : The category strategy: -To Identifier les leviers de croissance par catégorie et par enseigne - identify the growth driver by category and by banner (market and performance Stratégie review) de marché et de performance) (Revues ciblée -To Influencer le distributeurbuilding of his categoryde sa stratégie - influate the retailer in the dans la construction strategy (assortment, merchandising, valorisation...)merchandising, valorisation…) catégorielle (assortiment, -To Coordonnerprojects, to ensure thele suivi, la the measure of the results and - coordonate les projets, assurer follow-up, mesure des résultats the implementation of d’éventuelles actions correctives et la mise en place possible corrective actions. The operationalopérationnelle et ciblée :  L’action and focus action: Action -To coordonate the « trans-affaires » projects and the specific actions for the spécifique retailers (special les chantiersBeauté, ECR,... ) et les actions - Coordonner events, Club trans-Affaires spécifiques enseignes (op événementielles, Club Beauté, ECR…)
  • 19. L’Oréal’s mission  To understand the shopper ( Study market background Hygiene-Beauty Men and Women) : – Perception of hygiene-beauty today – Expectations to anticipate consumption changes  To understand the categories  The contribution of brands and innovations
  • 20. To understand the shopper Main teachings of the study shared with retailers (1/3)  The consumer’s perception: – HYGIENE-BEAUTY: avoid naming => The BEAUTY contains henceforth the whole offer – The consumer lives the Beauty experience as a pleasure of recentring on himself. => SELF CARE caracterises the values associated to this universe – Today and in an-ill assorted way, the department does not reflect the evolution towards dream, sensorality and the pleasure conveyed by the products and brands’ communications. Source : Etude Fond de marché L’Oréal 2006
  • 21. To understand the shopper Main teachings of the study shared with retailers (2/3)  Shoppers’ expectations : – Expectation of a priviledged and differenciated space within the shop => a real « bubble of pleasure » – Desire for an atmosphere inviting to escape and focus on oneself – To make an area with appeal stand out: => Good deals corner : promotion area => Innovation theatralisation => Brands speaking => Special performance of « self image » categories Source : Etude Fond de marché L’Oréal 2006
  • 22. To understand the shopper Main teachings of the study shared with retailers (3/3)  3 universe of « Self Care » well differenciated: – Take « Self Care » with a moment of pleasure and preparation of oneself – Take « Self Care » working and playing with self image – Take « Self Care » in the secret of a relation with our intimate body  A specific and independant area : For Men Source : Etude Fond de marché L’Oréal 2006
  • 23. Understanding the shopper A study used to lay the foundations for hygiene-beauty department 4 univers différenciés répondant aux attentes consommateurs MON UNIVERS BEAUTE POLE PÔLE PÔLE PÔLE SEDUCTION FRAICHEUR INTIME HOMME Parfums Femme Rasage féminin Gels douches Dépilatoires Shampooings Maquillage Bains Douches Déodorants Coloration Savons Hygiène intime Déodorants Préservatifs Rasage Soins visage Après-rasage Soins corps Dentifrices Hygiène féminine Soins visage Solaires Brosses à dents Incontinence Parfums Acc. chev Mouchoirs Coiffants Coton et coton tige Soins du cheveu / Shampooings 1ers soins
  • 24. Understanding and working the categories « Essential keys » factor of differenciation and profitability 1. To select CATEGORIES that will be actor of the universe Make-up, Perfums, Hair colorant, Hair care, Shampoo, Styling, Hair accessories, Deodorants, Bath, shower, Soaps, Skin care, Body care, Sun protection, Female care, Oral Care, Foot care… 2. Bring together categories by FAMILY NEED FAMILY PLEASURE FAMILY 3. Family repartition according to distribution areas L’Oréal DPGP / Essential keys 02.2010
  • 25. 4. To create ‘’Boutique’’ surroundings Understanding and working the categories « Essential keys » factor of differenciation and profitability L’Oréal DPGP / Essential keys 02.2010
  • 26. Understanding and working the categories « Essential keys » factor of differenciation and profitability 5. Visibility of the whole universe 6. Fluidity and free movement among the departments 7. Clean & Lighting L’Oréal DPGP / Essential keys 02.2010
  • 27. Ideal practice IMPORTANCE OF NEW LAUNCHES VISIBILITY ORGANISATION NEED PLEASURE OF THE CATEGORIES FLUIDITY OF CONSUMER FLOW L’Oréal DPGP / Essential keys 02.2010
  • 28. The deployment of category management by L’OREAL with retailers Asia – Latin America - Europe – East - West – France (Wal*Mart International) (Droguery-Market) (Latin America, USA) (region) (formats –CRM) (stores) (formats – future – new countries) (small formats) (nobody is forgiven)
  • 29. CHINA . WAL*MART UK . ASDA
  • 30. MEXICO . WAL*MART ARGENTINA . WAL*MART
  • 31. UK . TESCO HUNGARY . TESCO
  • 32. DI . Belgium
  • 33. The deployment of category management by L’OREAL with retailers in Asia
  • 34. Indonésie . Chine . Beijing. Singapour . Argentine . Bulgarie Bulgarie Turquie .
  • 35. The deployment of category management by L’OREAL with 3 ECR France partners
  • 36. Flash on ECR The 4 areas of in 2010 Focus Connected on Business Consumer Information Prepare People Share our Supply Chain Organisation of the new international maturity cards
  • 37. Category management? Support for Marketing? Merchandising? sales? Tactic? Strategic? Banner? Pricing? Brand? Assortment? New products? Promotion? Replenishment? Volume growth? Margin growth? Loyalty growth? Uniformisation? Differenciation?
  • 38. Categories? 302? 271? Family group? Family of products? Classification? Universe? Department? Types? Global product data Classification (GPC) ? Consumers? Shoppers?
  • 39. ECR definitions of category management  Category : A category is a distinct, manageable group of products/services that consumers perceive to be interrelated and/or substitutable in meeting consumer's needs  Category management : Category Management is a retailer - supplier process of managing categories as strategic business units, producing enhanced business results by focusing on delivering consumer value. ECR Europe – Rapport des meilleurs pratiques du Category Management (1997)
  • 40. Men category Market
  • 41. Men category Market
  • 42. Men category Market
  • 43. Men category Market
  • 44. Overall results  Store average : sell-out x8  CARREFOUR Market advantage for the whole category: – Panels : +10% – L’Oréal Group : +11.8%
  • 45. CASINO in CLICHY
  • 46. CASINO in CLICHY
  • 47. CASINO in CLICHY
  • 48. Perspectives Casino 2010 A know-how... Casino in Clichy (-22% before reorganization) Perfumery at + 66.4% in turnover / PGC Store + 27% # customers + 29% (+15% pdv) Spendings + 29.2% Average price + 14.1% + 66.4% 24-nov-08 au 22-nov-09 (52 semaines) Weight Perfumery Clichy 7.3% vs 5.4% Casino Contribution Parfumery growth T/O 14% Seconde réalisation Asnières Parf +26.9% vs +8.7% pdv
  • 49. LECLERC in FRANCONVILLE
  • 50. LECLERC in FRANCONVILLE New generations
  • 51. LECLERC in FRANCONVILLE New generations
  • 52. LECLERC in FRANCONVILLE New generations
  • 53. LECLERC in FRANCONVILLE New generations
  • 54. LECLERC in FRANCONVILLE New generations
  • 55. 9. Maquillage Acs 3. para SBD maq Promo 1,5. Parf 3,5. Déo F 8. SAVON BAIN DOUCHE Innovation 5. Dentaire 9. Soin visage & corps solaire 5. Coton mouchoir Promo 3. styling 2. Acs chv 5. coloration 07,5. homme . Ras depl H 8. shp ap shp 09. Maquillage 07,5. Homme 1. Innovation 01. Acs Maquillage Rasage dépilatoire 09. Soin du visage & corps Promotion 01,5. Parfums Femme 08. Savon Bain Douche 03,5. Déo Femme 05. Dentaire 01. Solaire 03. Para 05. Coton mouchoir 05. Coloration 03. Styling 02. Acs Cheveux 08. Shampooing Franconville
  • 56. LECLERC in FRANCONVILLE
  • 57. L’OREAL UK A good example of anglo-saxon experience
  • 58. The UK Category Management team is structured by category and there is a dedicated team for Grocery Grocery Team Core Category Experts
  • 59. Cat Man Key Tasks and Competencies Deliver Category and Shopper Expertise Retailer Insights Retailer’s Own Objectives for Category Reviews Retailers View on Brand Performance Retailers view on Commercial Teams and Overall Trading Relationship Retailers Timings for Category Reviews ….. Insights gained through Relationship and Retailer Meetings
  • 60. Cat Man Key Tasks and Competencies Support Range Reviews Optimising the retailer category range Right brands, Right space, Right adjacencies BUT ALSO: Defending and developing L’Oreal group share of space through objective analysis “Sweating the space as hard as possible!!!” Reviewing the performance of every sku on each bay size to ensure – best sales – balanced range – benchmarked vs market – ease of shop/brand blocking – space vs sales analysis
  • 61. Cat Man Key Tasks and Competencies Support Range Reviews Planogram Proposals Current Proposed
  • 62. Cat Man Key Tasks and Competencies Support Range Reviews Follow-up Analysis Creating Category Growth following … with L’Oreal Paris & Garnier’s sales leading each Range Review… the trend Skincare Category Range Review Tracking Skincare Category Range Review Tracking £1,000,000 £120,000 £950,000 £100,000 £900,000 £850,000 +£120k / week £80,000 Weekly Sales (£) £800,000 £60,000 £750,000 £700,000 £40,000 £650,000 Total L'Oreal & Garnier space +31% YoY May 05 £20,000 £600,000 Total L'Oreal & Garnier sales +21% YoY £550,000 £0 May-03 May-04 May-05 Mar-03 Nov-03 Mar-04 Nov-04 Mar-05 Jan-03 Feb-03 Apr-03 Jun-03 Jul-03 Aug-03 Sep-03 Oct-03 Dec-03 Jan-04 Feb-04 Apr-04 Jun-04 Jul-04 Aug-04 Sep-04 Oct-04 Dec-04 Jan-05 Feb-05 Apr-05 Jun-05 £500,000 May-03 May-04 May-05 Mar-03 Nov-03 Mar-04 Nov-04 Mar-05 Jan-03 Feb-03 Apr-03 Jun-03 Jul-03 Aug-03 Sep-03 Oct-03 Dec-03 Jan-04 Feb-04 Apr-04 Jun-04 Jul-04 Aug-04 Sep-04 Oct-04 Dec-04 Jan-05 Feb-05 Apr-05 Jun-05 Garnier L'Oreal Paris
  • 63. Cat Man Key Tasks and Competencies Drive the Beauty Opportunity In-Store Environment
  • 64. Store Project Examples: Morrisons New Look H&B LARGE FORMAT (3,500 sq. ft): 15 Stores Beauty Advice Centre Impactful visuals signpost entry to H&B; mixture of low and high fixtures encourages browsing; Headers and on- shelf education assist consumers navigate through the fixture
  • 65. Store Project Examples: Morrisons New Look H&B Adaption & Roll-out to 3- Aisle Stores SMALL FORMAT (2,600 sq. ft): 60 Stores 10,0% 8,6% 8,6% 8,0% 6,0% RESULTS: Morrisons is the fastest 4,0% 3,4% 1,6% 1,2% growing Retailer in the Beauty 2,0% 0,0% Categories -2,0% 2008 YTD 09 -4,0% -2,8% Market Morrisons Tesco
  • 66. Tesco Home Plus In Store Evolution •13 stores over 3 year period 2006 -2009 • Future vision layout & merchandising for H&B achieved in 2008 stores • Key features – curved free standing gondolas, testers, illuminated branded headers, Tesco graphics and lightboxes, interactive educational panels for Skincare & Colourants and Nottingham 2008 category information
  • 67. Tesco Homeplus Tesco Nottingham 2008 bespoke Skincare units Educational GE’s on bespoke Colourants units Skincare Advise Tool (headers + Shelfstrips) Skincare Regime + Testers (headers + Shelfstrips)
  • 68. Shopper insights: Branding and education is key in skincare Over 70% of shoppers know what brand/product they want before entering the store Women find shopping the category confusing and overwhelming in both high-street and supermarkets 32% of skincare shoppers wanting more ‘consultant/advice available’ shelf-strips can be used to help consumers understand the different franchises, Leading to consumers purchasing what is right for them Engagement at fixture is also key – over 10 minutes browsing result in higher purchase basket Source: L’Oreal Skincare U&A 2009, In-store Research 2010, Quantitative & Qualitative Research Insights February 2009
  • 69. Opportunity: Facial skincare Boots Superdrug Hammersmith Westfield Tesco Extra Slough Morrisons Milton Keynes Asda Living Bradford
  • 70. Opportunity: Facial skincare CARREFOUR ARGENTINA CARREFOUR AUTEUIL TESCO HUNGARY FAIRPRICE SINGAPORE GUARDIAN MALAYSIA KUALA LUMPUR FAIRPRICE SINGAPORE
  • 71. Sainsbury’s using strong, clear signage throughout Food & Beverage Impactful visuals in Generic fins to navigate Large banners and on- ‘chilled’ section through Herbs & Spices shelf education
  • 72. How can we replicate education in Skincare to maximise growth? Very little inspiration to encourage browsing -no clear signage or on-shelf education to assist consumers in finding the right brand/product to match their needs
  • 73. JS Skincare Vision: Use of impactful visuals and lit shelving to create an inspirational environment; while branded fins help navigate the fixture… LOW FIXTURE: Bringing a high-street feel to the grocery environment to encourage browsing
  • 74. …complemented with information panels and educational shelf strips across all key players to assist shoppers in making the right choice
  • 75. …with information panels (and glorifiers) centrally located at eye-level Interchangeable -to provide generic information as well as to shout about ‘New’
  • 76. The Future  The concepts of the future
  • 77. Mobile Initiatives EVENT & IMAGE COMMUNICATION « Christophe Robin, Expert Colorist for L’Oréal Paris gives you live all his expert tips and advice » 1. « Bring your phone close to the shelf and meet Christophe Robin, the colorist of the stars » 3. « You need more advice? 2. « Select the product An expert advisor calls you of your choice and get on the spot to guide you in Christophe Robin’s your selection » specific advice on it »
  • 78. Mobile Initiatives EVENT & IMAGE COMMUNICATION « L’Oréal Paris star secrets confidentially on your mobile » 1. « Bring your phone close to the shelf » 3. « Download a signed kiss from Laetitia Casta as wallpaper and send it over » 2. « Enter in a confidential relation with Laetitia Casta and discover her favorite lipstick color »
  • 79. Mobile Initiatives Promotion cross merchandising « Download for free «The World Is Mine» on your mobile for one Party Proof purchased!! » 1. « Bring your phone close to the shelf » 3. « At the cashier, download for free the whole HIT on your mobile, and 2. « Listen to an you’re ready to challenge your look! » extract of Guetta’s last HIT»
  • 80. Mobile Initiatives Promotion cross merchandising « 1€ reduction on your Party Proof for the purchase of Guetta’s CD » 1. « Bring your phone close to the shelf » 3. « At the cashier, for the purchase of David Guetta’s CD, 1€ reduction on your Party Proof! » 2. « Discover how you can challenge your look with Party Proof»