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Xavier filou. l'oreal

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Xavier filou. l'oreal

  1. 1. Insight Information in Category Management Co-operation Xavier FILOU General Manager of Corporate Trade Relations L’OREAL Copresident ECR France
  2. 2.
  3. 3. 2009 Key Figures World’s number 1 cosmetics group 23 international brands (1) 130 countries 67,500 employees 17.5 billion euros of sales in 2008 patents registered in 2008 674 (1) Brands with annual sales of more than 50 million euros.
  4. 4. Hair salons Mass market Selective Pharmacies Present in 4 key distribution channels A Pure Player in Beauty
  5. 5. Excluding soap, toothpaste and razors. Provisional estimates for 2008. Source: L’Oréal estimates +5.5% +3.0% (1993 – 2008* - Annual growth rate) 2008 1993 1994 1996 1997 1998 1999 2000 2001 2003 2002 1995 2004 2006 2005 2007 A resilient cosmetics market… Annual growth rate of + 4.5 % over the last 15 years
  6. 6. World’s number 1 cosmetics group L’Oréal Procter & Gamble * Unilever * Estée Lauder Avon Beiersdorf Shiseido * Johnson & Johnson * Kao Corp.* Chanel * 0 5 10 15 20 25 30 Sales in billion US dollars 25,81 19,8 15,55 7,84 7,6 7,03 6,49 5,8 5,56 4,43 * estimates WWD Beauty Biz Ranking Sept. 2009 2008 Sales « Beauty’s Top 100 » in US $
  7. 7. Constantly improving its worldwide positions L’Oréal market share* 2000–2008 Based on estimates of the worldwide cosmetics market updated in 2007 14.3% 15.2% 15.8%** 13.8% * Excluding soap, toothpaste and razors. Source: L’Oréal estimates. ** 2008 with YSL Beauté over a full year 2000 11.0% 11.7% 13.6% 12.4% 13.2% 2001 2002 2003 2004 2005 2006 2007 2008
  8. 8. A unique portfolio of strong and complementary brands MIZANI Luxury Products Active Cosmetics The Body Shop Consumer Products Professional Products
  9. 9. 1.2 billion X 2 2.5 billion Our ambition: double our consumer base
  10. 10. Accelerated urbanisation: … 60% of the population will be city-dwellers in 2020
  11. 11. X 2 > 60 years < 25 years € 87.3 € 25.1 Average skin care expenses per consumer in France, by age Source: TNS Worldpanel France - 2008 Women over 60 years old spend twice as much on facial skincare as women under 25 years old
  12. 12. Men: the potential of the new generation Cosmetics’ usage, by age and by category European Health & Beauty Survey – Men - 2007 - IPSOS * H&B Survey - 2005 Cleansing Products users (%) Moisturizing day cream users (%) 20 – 29 years old 50-59 years old 15 % 23 % 17 % 30 % 20 – 29 years old 50-59 years old
  13. 13. Accessible innovation Opening up new categories Accelerating globalisation Reducing costs and streamlining organisational structures Strengthening business drivers Increasing our consumer base 5 strategic thrusts 1 2 3 4 5
  14. 14. Breakthrough innovations at the heart of each market 14
  15. 15. Breakthrough innovations at the heart of each market 15
  16. 16. Breakthrough innovations at the heart of each market 16
  17. 17. Category Management at L’OREAL today
  18. 18. <ul><li>Markets complexity </li></ul><ul><ul><li>New products, growing segmentation </li></ul></ul><ul><li> Necessity to develop markets, then growth, and to optimize assortment </li></ul><ul><li>Evolution of purchasing behaviors </li></ul><ul><ul><li>A more and more informed, volatil, fickle , and clever purchaser. </li></ul></ul><ul><ul><li>Planned, timely, immediate, conditionned, identified purchases... </li></ul></ul><ul><li> Necessity to fit to trends consumption </li></ul><ul><li>System of information explosion </li></ul><ul><ul><li>Scanning, panels, loyalty card… </li></ul></ul><ul><li> New information to use </li></ul>The explanatory factors of the Category Management birth Today, Category Management is a tool of differenciation, in full transformation. It is a strategic function of General Management
  19. 19. N°1 worldwide, we are bearer of responsabilities vis-à-vis consumers and retailers Category Management Scope of Actions <ul><li>The Hygiene-Beauty Expertise : </li></ul><ul><li>To define and express the strategic vision of L’OREAL on HB </li></ul><ul><li>To anticipate market evolutions, distribution changes and competitor’s initiatives </li></ul><ul><li>To develop partnerships on HB department with our customers </li></ul><ul><li>The category strategy : </li></ul><ul><li>-To identify the growth driver by category and by banner (market and performance review) </li></ul><ul><li>-To influate the retailer in the building of his category strategy (assortment, merchandising, valorisation...) </li></ul><ul><li>-To coordonate projects, to ensure the follow-up, the measure of the results and the implementation of possible corrective actions. </li></ul><ul><li>The operational and focus action : </li></ul><ul><li>-To coordonate the « trans-affaires » projects and the specific actions for the retailers (special events, Club Beauté, ECR,... ) </li></ul>
  20. 20. L’Oréal’s mission <ul><li>To understand the shopper ( Study market background Hygiene-Beauty Men and Women) : </li></ul><ul><ul><li>Perception of hygiene-beauty today </li></ul></ul><ul><ul><li>Expectations to anticipate consumption changes </li></ul></ul><ul><li>To understand the categories </li></ul><ul><li>The contribution of brands and innovations </li></ul>
  21. 21. To understand the shopper Main teachings of the study shared with retailers (1/3) <ul><li>The consumer’s perception: </li></ul><ul><ul><li>HYGIENE-BEAUTY: avoid naming </li></ul></ul><ul><ul><li>=> The BEAUTY contains henceforth the whole offer </li></ul></ul><ul><ul><li>The consumer lives the Beauty experience as a pleasure of recentring on himself. </li></ul></ul><ul><ul><li>=> SELF CARE caracterises the values associated to this universe </li></ul></ul><ul><ul><li>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. </li></ul></ul>Source : Etude Fond de marché L’Oréal 2006
  22. 22. To understand the shopper Main teachings of the study shared with retailers (2/3) <ul><li>Shoppers’ expectations : </li></ul><ul><ul><li>Expectation of a priviledged and differenciated space within the shop </li></ul></ul><ul><ul><li>=> a real « bubble of pleasure » </li></ul></ul><ul><ul><li>Desire for an atmosphere inviting to escape and focus on oneself </li></ul></ul><ul><ul><li>To make an area with appeal stand out: </li></ul></ul><ul><ul><li>=> Good deals corner : promotion area </li></ul></ul><ul><li>=> Innovation t heatralisation </li></ul><ul><li>=> Brands speaking </li></ul><ul><li>=> Special performance of « self image » categories </li></ul>Source : Etude Fond de marché L’Oréal 2006
  23. 23. To understand the shopper Main teachings of the study shared with retailers (3/3) <ul><li>3 universe of « Self Care » well differenciated: </li></ul><ul><ul><li>Take « Self Care » with a moment of pleasure and preparation of oneself </li></ul></ul><ul><ul><li>Take « Self Care » working and playing with self image </li></ul></ul><ul><ul><li>Take « Self Care » in the secret of a relation with our intimate body </li></ul></ul><ul><li>A specific and independant area : For Men </li></ul>Source : Etude Fond de marché L’Oréal 2006
  24. 24. Understanding the shopper A study used to lay the foundations for hygiene-beauty department
  25. 25. 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 3. Family repartition according to distribution areas Understanding and working the categories « Essential keys » factor of differenciation and profitability 02.2010 L’Oréal DPGP / Essential keys NEED FAMILY PLEASURE FAMILY
  26. 26. 4 . To create ‘’Boutique’’ surroundings 02.2010 L’Oréal DPGP / Essential keys
  27. 27. 5. Visibility of the whole universe 6. Fluidity and free movement among the departments 7. Clean & Lighting Understanding and working the categories « Essential keys » factor of differenciation and profitability 02.2010 L’Oréal DPGP / Essential keys
  28. 28. FLUIDITY OF CONSUMER FLOW PLEASURE NEED IMPORTANCE OF NEW LAUNCHES ORGANISATION OF THE CATEGORIES VISIBILITY Ideal practice 02.2010 L’Oréal DPGP / Essential keys
  29. 29. The deployment of category management by L’OREAL with retailers Asia – Latin America - Europe – East - West – France (Wal*Mart International) (Latin America, USA) (stores) (region) (formats –CRM) (small formats) (formats – future – new countries) (nobody is forgiven) (Droguery-Market)
  30. 30. CHINA . WAL*MART UK . ASDA
  31. 31. ARGENTINA . WAL*MART MEXICO . WAL*MART
  32. 32. UK . TESCO HUNGARY . TESCO
  33. 33. DI . Belgium
  34. 34. The deployment of category management by L’OREAL with retailers in Asia
  35. 35. Chine . Beijing. Argentine . Indonésie . Singapour . Turquie . Bulgarie Bulgarie
  36. 36. The deployment of category management by L’OREAL with 3 ECR France partners
  37. 37. Flash on ECR The 4 areas of in 2010 Organisation of the new international maturity cards Focus on Consumer Connected Business Information Share our Supply Chain Prepare People
  38. 38. Category management?
  39. 39. Categories?
  40. 40. ECR definitions of category management <ul><li>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 </li></ul><ul><li>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. </li></ul>ECR Europe – Rapport des meilleurs pratiques du Category Management (1997)
  41. 41. Men category Market
  42. 42. Men category Market
  43. 43. Men category Market
  44. 44. Men category Market
  45. 45. Overall results <ul><li>Store average : sell-out x8 </li></ul><ul><li>CARREFOUR Market advantage for the whole category: </li></ul><ul><ul><li>Panels : +10% </li></ul></ul><ul><ul><li>L’Oréal Group : +11.8% </li></ul></ul>
  46. 46. CASINO in CLICHY
  47. 47. CASINO in CLICHY
  48. 48. CASINO in CLICHY
  49. 49. 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% 24-nov-08 au 22-nov-09 (52 semaines) + 66.4% 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
  50. 50. LECLERC in FRANCONVILLE
  51. 51. New generations LECLERC in FRANCONVILLE
  52. 52. LECLERC in FRANCONVILLE New generations
  53. 53. LECLERC in FRANCONVILLE New generations
  54. 54. LECLERC in FRANCONVILLE New generations
  55. 55. LECLERC in FRANCONVILLE New generations
  56. 56. Pascal Baudhuin Int'l Category Manager . L’Oréal DPGP 09. Maquillage 01. Acs Maquillage 09. Soin du visage & corps 01,5. Parfums Femme 03,5. Déo Femme 01. Solaire 08. Savon Bain Douche 05. Dentaire 03. Para 05. Coton mouchoir 07,5. Homme Rasage dépilatoire 05. Coloration 03. Styling 02. Acs Cheveux 08. Shampooing 1. Innovation Promotion 9. Maquillage Innovation Promo Promo 5. Dentaire 1,5. Parf 3,5. Déo F Acs maq 9. Soin visage & corps solaire 07,5. homme . Ras depl H 3. styling 2. Acs chv 5. coloration 8. shp ap shp 8. SAVON BAIN DOUCHE 3. para 5. Coton mouchoir SBD Franconville
  57. 57. LECLERC in FRANCONVILLE
  58. 58. L’OREAL UK A good example of anglo-saxon experience
  59. 59. The UK Category Management team is structured by category and there is a dedicated team for Grocery Grocery Team Core Category Experts
  60. 60. Cat Man Key Tasks and Competencies Retailer Insights Insights on Retailer Performance in our Categories Deliver Category and Shopper Expertise
  61. 61. Cat Man Key Tasks and Competencies Retailer Insights Benchmark Retailers on Key Business Drivers Drive the Beauty Opportunity
  62. 62. Cat Man Key Tasks and Competencies Retailer Insights Insights gained through Relationship and Retailer Meetings 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 … .. Deliver Category and Shopper Expertise
  63. 63. <ul><li>“ Sweating the space as hard as possible!!!” </li></ul><ul><li>Reviewing the performance of every sku on each bay size to ensure </li></ul><ul><ul><li>best sales </li></ul></ul><ul><ul><li>balanced range </li></ul></ul><ul><ul><li>benchmarked vs market </li></ul></ul><ul><ul><li>ease of shop/brand blocking </li></ul></ul><ul><ul><li>space vs sales analysis </li></ul></ul>Cat Man Key Tasks and Competencies 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 Support Range Reviews
  64. 64. Cat Man Key Tasks and Competencies Sales Analysis Support Range Reviews
  65. 65. Cat Man Key Tasks and Competencies Space Analysis Support Range Reviews
  66. 66. Cat Man Key Tasks and Competencies Planogram Proposals Current Proposed Support Range Reviews
  67. 67. Cat Man Key Tasks and Competencies Follow-up Analysis Creating Category Growth following each Range Review… … with L’Oreal Paris & Garnier’s sales leading the trend Support Range Reviews
  68. 68. Cat Man Key Tasks and Competencies In-Store Environment Drive the Beauty Opportunity
  69. 69. 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
  70. 70. Store Project Examples: Morrisons New Look H&B SMALL FORMAT (2,600 sq. ft): 60 Stores Adaption & Roll-out to 3- Aisle Stores RESULTS: Morrisons is the fastest growing Retailer in the Beauty Categories
  71. 71. Tesco Home Plus In Store Evolution <ul><li>13 stores over 3 year period 2006 -2009 </li></ul><ul><li>Future vision layout & merchandising for H&B achieved in 2008 stores </li></ul><ul><li>Key features – curved free standing gondolas, testers, illuminated branded headers, graphics and lightboxes, interactive educational panels for Skincare & Colourants and category information </li></ul>Tesco Nottingham 2008
  72. 72. Tesco Homeplus bespoke Skincare units (headers + Shelfstrips) Educational GE’s on Skincare Regime + Testers bespoke Colourants units (headers + Shelfstrips) Skincare Advise Tool Tesco Nottingham 2008
  73. 73. Shopper insights: Branding and education is key in skincare Source: L’Oreal Skincare U&A 2009, In-store Research 2010, Quantitative & Qualitative Research Insights February 2009 Engagement at fixture is also key – over 10 minutes browsing result in higher purchase basket shelf-strips can be used to help consumers understand the different franchises, Leading to consumers purchasing what is right for them Women find shopping the category confusing and overwhelming in both high-street and supermarkets 32% of skincare shoppers wanting more ‘consultant/advice available’ Over 70% of shoppers know what brand/product they want before entering the store
  74. 74. Opportunity: Facial skincare Tesco Extra Slough Morrisons Milton Keynes Asda Living Bradford Superdrug Westfield Boots Hammersmith
  75. 75. FAIRPRICE SINGAPORE TESCO HUNGARY CARREFOUR AUTEUIL GUARDIAN MALAYSIA KUALA LUMPUR CARREFOUR ARGENTINA FAIRPRICE SINGAPORE Opportunity: Facial skincare
  76. 76. Impactful visuals in ‘chilled’ section Generic fins to navigate through Herbs & Spices Large banners and on-shelf education Sainsbury’s using strong, clear signage throughout Food & Beverage
  77. 77. 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
  78. 78. 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
  79. 79. … complemented with information panels and educational shelf strips across all key players to assist shoppers in making the right choice
  80. 80. … with information panels (and glorifiers ) centrally located at eye-level Interchangeable -to provide generic information as well as to shout about ‘New’
  81. 81. The Future <ul><li>The concepts of the future </li></ul>
  82. 82. « 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 » 2.  « Select the product of your choice and get Christophe Robin’s specific advice on it » 3.  « You need more advice? An expert advisor calls you on the spot to guide you in your selection » Mobile Initiatives EVENT & IMAGE COMMUNICATION
  83. 83. Mobile Initiatives EVENT & IMAGE COMMUNICATION « L’Oréal Paris star secrets confidentially on your mobile » 1.  « Bring your phone close to the shelf » 2.  « Enter in a confidential relation with Laetitia Casta and discover her favorite lipstick color » 3.  « Download a signed kiss from Laetitia Casta as wallpaper and send it over »
  84. 84. « Download for free «The World Is Mine» on your mobile for one Party Proof purchased!! » 1.  « Bring your phone close to the shelf » 2.  « Listen to an extract of Guetta’s last HIT» 3.  « At the cashier, download for free the whole HIT on your mobile, and you’re ready to challenge your look! » Mobile Initiatives Promotion cross merchandising
  85. 85. « 1€ reduction on your Party Proof for the purchase of Guetta’s CD » 1.  « Bring your phone close to the shelf » 2.  « Discover how you can challenge your look with Party Proof» 3.  « At the cashier, for the purchase of David Guetta’s CD, 1€ reduction on your Party Proof! » Mobile Initiatives Promotion cross merchandising

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