1. Magnet—Unilever: Winning together with
new technologies in Health and Beauty

2. Content

3. Unilever is an expert in Health & Beauty categories
UL #1 UL #3 UL #2 UL #2
1%
5%
8% 18%
9% 34% 1% 31%
4%
9%
10%
11% 7% 7% 11%
OTHER
13%
16% AIST
29% 27% 1%
RECKITT BENCKISER
15%
EVYAP
14% 15% 11%
NEVSKAYA KOSM.
41% KALINA
3% 4%
16% COTY
13% 14%
HENKEL - SCHWARZKOPF
P&G
L'OREAL
deodorants hair care shower gels soap
COL. PALMOLIVE
BEIERSDORF
UNILEVER

4. Unilever Health & Beauty strategy is based on Macro
Category Growth Drivers
Regime & Routine Life Stage Male Grooming Relevant Innovation
Trading Up, Fashion & Trends Endorsement Retail Execution
Reaching down & Expertise

5. Health & Beauty Category drivers – implications in store
Growth Driver Implications in store
Regime
& Routine
Life Stage
Male Grooming
Innovation
Trading Up,
Reaching Down
Fashion
& Trends
Endorsement
& Expertise
Retail Execution

6. How to drive Health and Beauty categories?
More users
More usage
More benefit

7. How to grow Health & Beauty?
Get Shoppers Get Shoppers to
Drive basket size
down the aisle slow down

8. Magnet is one of the key modern trade Customers in Russia

9. Magnet fast and swift development on Russian
market is impressive
1994–1998 1998–1999 2001–2005 2006–2009 crisis 2010–2011
Foundation of First convenience Rapid regional roll- Leading food retailer Acceleration of
wholesale business store opened in out: 1’500 stores in Russia by number growth – 800 conveni-
by Mr. Galitskiy Krasnodar by the end of 2005 of stores ence stores and 27
Tander becomes Experiments with Adoption of IFRS IPO in 2006 hypermarkets added
one of the major format Strict financial Independent director in 2010
distributors of Stores merged into control elected to the Board Large investment
household products Magnit discounter Performance-linked Audit Committee programme for 2011:
and cosmetics in retail chain compensation established plan to make Capital
Russia Corporate govern- expenditures of about
Decision to expand ance rules estab- $1.8 bn
into food-retail lished to comply with Plan to open up to
market best practice 800 convenience
SPO – 2008, 2009 stores and up to 50
24 hypermarkets hypermarkets during
opened in 2007-2009 2011
636 convenience Ongoing efficiency
stores opened in improvement
2009 (the total store
base is 3’228 as of
Source: http://magnit-info.ru/investors/press/ December 31’2009)

10. Extensive growth is one of key sources
of development for Magnet
Key operational indicators
2011 2010
Number of opened stores, NET 1254 827
Total number of opened stores 5309 4055
Total trade area, thousand square metres 1970.16 1422.38
Source: http://magnit-info.ru/investors/press/

11. Opportunities for Magnet and Unilever cooperation
in Health & Beauty are significant and impactful
Magnet – Reinventing Unilever Health & Beauty
Hypermarkets & Perfumeries, expertise and knowledge
intensive growth of Health using CiiC technology
& Beauty categories
Implement Health & Beauty project
through collaboration in test stores
Sales increase in Health & Beauty
categories by +10 +15 %

12. CIIC – what does it mean?
CIIC — CUSTOMER INSIGHT AND INNOVATION
CENTRE OF UNILEVER
London
N. America Paris Shanghai
Singapore-
Nov 2010
Sao Paolo
Sept 2010

13. Global CIIC mission

15. Knowledge Centre in CIIC

16. Virtual Laboratory in CIIC

17. Retail Laboratory — physical simulation of opportunities
Planograms
POSM Testing
& Category
& Research
Management
Department
Call to Action
«Look & Feel»

18. Retail Laboratory — physical simulation of opportunities

19. CIIC background
Magnet Health & Beauty opportunities in Hypermarket

20. Magnet and Unilever used Global Health & Beauty
expertise in lay-out organization
Beauty Personal Health Male
Care Care Care / Specialist grooming
Benefits: Key insights
1
2

21. Magnet confirmed Unilever Health & Beauty
lay-out in Hypermarket test store
New accepted lay-out based on:
- Level of penetration
- Top 3 key categories that bring
value to Magnet
*1 - Number of racks for category placement

22. Male Shopper research that was held especially for Magnet
confirmed the necessity to create Male Grooming area
Male Grooming key insights*:
1
2
3
4
5
6
7
Male Grooming categories should be together in Health & Beauty
department and stands separately from female and unisex categories

23. Male Shopper research that was held especially for Magnet
confirmed the necessity to create Male Grooming area
Magnet male shoppers desires and wishes*:

24. Separate Male Grooming area was created in Magnet

25. Male products can now be easily found and navigated
inside the store
Before
After

26. Navigation proposal for Magnet Hypermarkets
in Virtual Reality

27. We agreed on Health & Beauty design and navigation
elements in Hypermarkets

28. New category navigation attracts shoppers
to Health & Beauty area

29. Navigation elements are visible from any point in the store
and attract shoppers into Health and Beauty department

30. All H&B area is clearly segmented and helps shoppers
to find product on the shelves easily and spend more
time in the department
Toppers with category
segmentation
Stoppers
Floor stickers
Shelf dividers
Shelf strips

31. TG decoration attract shoppers attention to promo offers
Before
Before
After After

32. Dividers make category well organized and fix planogramms
After
Before

33. Shoppers like new Health and Beauty area in Magnet
WELL
DONE

34. Magnet – Unilever: future plans for collaboration
1
2
3

35. Thank you!
Nadezhda Butrimova
Mariya Troshina