L’Intelligence Artificielle sonne-t’elle le glas de votre Direction Marketing ? par Cédric Fischer (Firmenich) et Mathieu Trepanier (Tsquared Insights)

1. MathieuTrepanier (PhD), CEO & Co-Founder
Cédric Fischer,VP OralCare & Mint Unit
From data to the ideal product – Google,
Amazon and AI
January 25th, 2018

2. 2
FIRMENICH
Founded in 1895 in Geneva, Switzerland
MORETHANA
BUSINESS,
WE ARE A FAMILYWITH
A LEGACY
GLOBAL PRESENCE
7000
COLLEAGUES
100+
MARKETS
63
FACILITIES
AROUND
THEWORLD
4
R&D
CENTERS
LARGEST PRIVATELY-
OWNED COMPANY IN
THE FRAGRANCE &
FLAVOR INDUSTRY

3. FIRMENICH CREATES FOR
THE
WORLD’S
MOST
DESIRABLE
BRANDS
LEADER IN INNOVATION
Understanding trends & markets while providing business solutions for our clients
3

4. VolumeinExabytes* 9000
8000
7000
6000
5000
4000
3000
90%OF THE
WORLD’S DATA
WAS CREATED IN
THE LAST
YEARS
2
50xGROWTH
FROM
2010TO 2020
Sensors
& Devices
Social
Media
VOIP
Enterprise
Data
We are here
20202010
CONTEXT: WHAT IS BIG DATA?
Big in growth, too
*1 exabyte (EB) = 1,000,000,000,000,000,000 bytes
4
Consumer
Generated
Data

5. 5
Online sales
Sales
influenced
by online
Pure offline
sales
59%
51%
69%
46%
52%
70%
Automotive
Beauty
Electronics
Groceries
Health
Luxury
Online influence by category
56%
34%
10%
ONLINE SALES ARE ONLY THE TIP OF THE ICEBERG
56% of sales across categories are already influenced by the online world
Source: Deloitte “The new digital divide”, 2016, USA. Statistica “E-commerce figures”, 2017, Global.

6. Consideration
Evaluation
Purchase intent
Purchase decision
Trigger/need
From first search to purchase decision and beyond…
… millions of touchpoints throughout a complex consumer journey

7. Insights with unlimited granularity
7
Interests based on cross channel search data
12:46:04 PM Gmail
12:56:04 PM France24
1:00:15 PM Euronews
2:43:20 PM Où promener son chien à Paris
2:55:20 PM Fond de teint longue durée
Long-lasting
makeup
foundation
Need
3:52:55 PM search for Sheer Glow Foundation
3:53:48 PM visit Sheer Glow Foundation product page
3:54:15 PM add Sheer Glow Foundation to basket
3:55:00 PM proceed to checkout
Add to basket
+ Purchase
Purchase
decision
3:16:04 PM visit amazon results page for foundation
3:25:03 PM visit Maybelline Affinitone product page
3:33:15 PM visit Sheer Glow Foundation product page
3:43:20 PM read Sheer Glow Foundation product reviews
Product page
& read reviews
Evaluation
Need Evaluation Purchase decision

8. • Natural means many things and points to a multiplicity of micro-trends
Analyzing the ‘natural’ trend
8
…
Our study considered 8.2 billion yearly searches in the US and the UK
A large quant study would typically
reach up to 150,000 respondents
3x
In this study, over
97 million yearly searches related to
food and beverages were considered
In total, more than
8.2 billion yearly
searches in the US
and the UK were
considered for this
study

9. anti inflammatory
clean eating
dairy free
fodmap diet
gluten free
gmo
high fiber
high protein
lactose free
low calorie
low carb
low fat
mediterranean
organic
pescatarian
plant based
sugar free
superfood
vegan
vegetarian
whole foods
natural
-20%
-10%
0%
10%
20%
30%
40%
50%
60%
70%
0 20,000 40,000 60,000 80,000 100,000 120,000
YoYGrowth[%] Avg. monthly search volume
Challenge: identify the emerging category needs or addressing a particular
audience, and the right brand offering
9
Main ingredients ?
Free from ?
?
Benefits area?
Incrementality ?
Growing need to address ?Audience ?

10. 10
Food, diet, and dietary restriction search trends in the US show Vegan and
Gluten free as top searches while Organic and Natural are more niche
• Source: Tsquared Insights, USA, December 2016. Sample: general population

11. In the US, interest in ‘vegan’ initially overtook ‘gluten-free’ in California, later to
spread nationally
• Source: Google Trends, USA, December 2016.
Search topic ranking by state
Vegan > Gluten free
Gluten free >Vegan
11
2012
2016
Who are my target consumers?

12. Organic food audience associates strongly with GMO free and Clean eating;
Vegan audience is behaviorally similar to Gluten-free and Natural audiences
12
• Source: Tsquared Insights, USA, October 2016. Sample: organic food audience, vegan audience.
-100 -75 50/50 75 100
Gluten free
Natural food
Clean Eating
GMO free
ORGANIC food audience
-100 -75 50/50 75 100
VEGAN audience

13. Local Farmers Market
Local Food
Sustainable Products
Sustainable Food
Sustainable Development
Sustainable Living
Fair Trade Coffee
Fair Trade Chocolate
Fair Trade
Domino's Pizza
McDonald's
Taco Bell
Yo Sushi
Purple Carrot
Subway
Alcoholic beverages
Baked goods and pastries
Oils & fats
Tea
Nutrients
Protein
Cereals and grains
Local food
Sustainability
Fair trade
Food services
Food & beverage
categories
Organic food and vegan audience: search association scores across
topics Organic Vegan
This difference between audiences can be seen across many topics through
search association scores
13
Hiking
Gym Workouts
Yoga
Tennis
Crossfit
Functional Training
Pilates
Basketball
Brad Pitt
Jamie Oliver
Gordon Ramsay
Beyonce
Tony Robbins
Mark Zuckerberg
Bill Gates
Dr. Sanjay Gupta
Mazda Dealers
Suzuki Dealers
Honda Dealers
Audi Dealers
Land Rover Dealers
Jaguar Dealers
Cadillac Dealers
Fitness and sports
Celebrities & cooks
Entrepreneurs
and TV personalities
Car brands
Source: Tsquared Insights, USA, October 2016. Sample: organic food audience, vegan audience.
Organic Vegan

14. 14
• Source: Tsquared Insights, UK, November 2016. Sample: vegan audience.
Identifying likes and dislikes of the UK vegan audience to create an ideal ‘dairy’
drink
The vegan audience is
interested in ingredients
such as cantaloupe, acai
berry and coconut and
almond milk, while L-
carnitine, synthetic dyes
and aspartame should be
avoided for this audience

15. Whitening
Freshness
Mouth
Irritations
Dry
Mouth
Gum
Care
Enamel
Care
Sensitivity
Re pai r
Preve n ti on
C on fi de n c e
CONSUMER NEEDS BY PRODUCT CLAIMS
Anti-
Tartar/
Plaque
Anti-
Cavity
Total
Care
Clean

16. Emerging
Weak Signal
Bad breath
Dental calculus
Denture care
Enamel
strenghtening
Gum care
House remedies
Sensitive teeth
Teeth whitening
Cosmetic
dentistry
-5%
-3%
-1%
1%
3%
5%
7%
9%
11%
13%
15%
10,000 100,000 1,000,000 10,000,000
Year-on-yeargrowth(%)
Yearly search volume [log. scale]
Searchmap of oral care needs (UK, log. scale)
WHITENING IS THE #1 ORAL CARE NEED IN SEARCH AND GROWTH IN UK
75% of oral care search relates to appearance
16
Source: Tsquared Online Search Insights, UK, July 2017. Yearly search volume: June 2016 to July 2017. Combined volume and growth.
Major/Hot
Major/Fading
Search for oral care needs in
the UK
Teeth whitening 43%
Cosmetic dentistry 32%
Gum care 11%
Denture care 5%
Bad breath 3%
Dental calculus 3%
Sensitive teeth 1%
House remedies 1%
Enamel strengthening <1%
Keywords:
- whitening toothpaste
- teeth whitening strips
- best teeth whitening
+ 22 others

17. WHITENING TOPS ORAL CARE SEARCH
More popular than pizza, but less than Meghan Markle
17
Source: Tsquared Online Search Insights, UK, July 2017. Yearly search volume: June 2016 to July 2017.
4,196 k
2,656 k
2,503 k
2,083 k2,058 k
1,553 k
1,148 k 1,111 k
832 k
694 k
548 k 531 k
381 k
242 k 198 k 173 k 160 k 112 k 87 k 82 k 79 k 24 k
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
4,000,000
4,500,000
Yearly search volume per keyword

18. WHITENING, THE NEW BASIC IN ORAL CARE SINCE 2015
Growth driven by affordable and widely available home solutions, not professional ones
18
Source: Tsquared Online Search Insights, July 2017. Yearly search volume: June 2016 to July 2017.
0
10
20
30
40
50
60
70
80
90
100
Jul-12 Jan-13 Jul-13 Jan-14 Jul-14 Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17
Searchindex
Evolution of search for whitening toothpaste and laser teeth
whitening
whitening toothpaste
laser teeth whitening
60%
11%
9%
8%
5%
2%
2%
3%
0% 20% 40% 60% 80%
teeth whitening (non-
specific)
teeth whitening kit
whitening strips
charcoal teeth whitening
whitening toothpaste
teeth whitening gel
professional teeth
whitening
others
Whitening topics share in search
(UK)

19. Year-on-yeargrowth(%)ACTIVATED CHARCOAL, ‘THE’ NATURAL TREND IN ORAL CARE
Other ingredients, like Turmeric or Bentonite clay, also present opportunities
19
Source: Tsquared Online Search Insights, July 2017. Yearly search volume: June 2016 to July 2017.
turmeric
probiotics
aloe vera
tea tree oil
strawberry
cinnamon
lavender
ginger
cucumber
stevia
lemon
coconut
cherries
clove
xylitoldiatomaceous
earth
eucalyptus
parsley
vanilla
bentonite clay
cacao
basil
myrrhblack tea
-40%
-20%
0%
20%
40%
60%
10,000 100,000 1,000,000 10,000,000
Yearly search volume (log. scale)
activated charcoal
240%
260%
280%
Searchmap of ingredients related to oral care (UK, log. scale)

20. 20
Source: Tsquared Insights, UK 2017. Data sources: Google, Amazon. From June 1st 2017 to December 1st 2017.
Over 19,000 people of the
Tsquared panel showed
interest in the 3 ingredients in
the last 6 months
(estimated 665’000 in the
UK)
They are very active on Amazon
Index: 228
(vs. general population)
38% purchased at least
1 product in the last 6
months
HIGH POPULARITY OF E-COMMERCE AMONG INGREDIENT SEARCHERS
turmeric
activated
charcoal
bentonite
clay

21. 21
Source: Tsquared Insights, UK 2017. Data sources: Google, Amazon. From June 1st 2017 to December 1st 2017.
Oral-B Pro Expert Professional
Protection Clean Mint Toothpaste
Aloe Dent Whitening Aloe Vera
Fluoride Free Toothpaste
Colgate Total Charcoal Deep Clean
Toothpaste
Oranurse Unflavoured Toothpaste
#1
#2
#3
#4
#5
Corsodyl Extra Fresh Toothpaste
for Bleeding Gums
Jason Sea Fresh Natural Toothpaste
(Antiplaque, Fluoride Free, SLS free)
Aloe Dent Triple Action Toothpaste
with Fluoride
Colgate Max White Luminous
Toothpaste
Colgate Advanced White
Toothpaste
Colgate Sensitive Pro-Relief
Whitening Toothpaste
#6
#7
#8
#9
#10
TOP SKUs ADDED TO BASKET BY CHARCOAL, TURMERIC, CLAY SEARCHERS
Natural and whitening products are the most popular

22. 0.2%
0.5%
0.6%
1.0%
1.2%
1.4%
1.7%
2.0%
2.3%
2.7%
0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0%
vegan
homemade/diy
smokers
enamel
tooth powder
sensitive
fluoride
organic
whitening
natural
TOOTHPASTE TYPES BOUGHT BY CHARCOAL, TURMERIC, CLAY SEARCHERS
Over indexing on whitening, “for smokers”, and non-mint flavors
22
0.3%
0.4%
1.4%
2.1%
0.0% 0.5% 1.0% 1.5% 2.0% 2.5%
triclosan free
sls free
non mint
fluoride free
Penetration rate
Source: Tsquared Insights, UK 2017. Data sources: Google. From June 1st 2017 to December 1st 2017.
Top 10 toothpaste types:
penetration in general population (UK)
Top toothpaste “Free From” ingredients:
penetration in general population (UK)
natural 98
whitening 117
organic 109
fluoride 91
sensitive 86
tooth powder 111
enamel 91
smokers 121
homemade/diy 90
vegan 89
Level of interest of ingredient searchers
(index to general population)
fluoride free 94
non mint 121
sls free 88
triclosan free 104

23. 24%
13%
12%
11%
9%
9%
8%
8%
6%
Top 10 toothpaste brands by Purchase intent
(among turmeric, charcoal and bentonite clay searchers)
Source: Tsquared Insights, UK 2017. Data sources: Google, Amazon. From June 1st 2017 to December 1st 2017.
(44% market share)
(18% market share)
turmeric
activated
charcoal
bentonite
clay
(9% market share)
(3% market share) natural brands
BRANDS PURCHASED BY CHARCOAL, TURMERIC, CLAY SEARCHERS
Natural brands stay close to the top 3 players: Colgate, Sensodyne, and Oral-B
23

24. FROM DIGITAL BEHAVIOR TO PRODUCT FORMULATION
24
Potential claims:
Fluoride free
Tartar removal
With ingredients such as:
Activated charcoal
Cinnamon
Addressing needs such as:
Teeth whitening
Toothache
BRAND X

25. Digital footprints provide key insights on consumer needs…
25
Consumer
Decision
Journey
which are the starting point of the whole customer journey!

26. Thank you
Tsquared Insights
Route de Pré-Bois 20
CP 1897
1215 Geneva
Switzerland
MathieuTrepanier
mtrepanier@tsquaredinsights.com
Mobile: +41 79 549 23 88
Cédric Fischer
cedric.fischer@firmenich.com