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Magnet—Unilever: Winning together with
new technologies in Health and Beauty
Content
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
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
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
How to drive Health and Beauty categories?


   More users



   More usage



   More benefit
How to grow Health & Beauty?




Get Shoppers        Get Shoppers to
                                      Drive basket size
down the aisle      slow down
Magnet is one of the key modern trade Customers in Russia
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)
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/
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 %
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
Global CIIC mission
Knowledge Centre in CIIC
Virtual Laboratory in CIIC
Retail Laboratory — physical simulation of opportunities

    Planograms
                                 POSM Testing
    & Category
                                 & Research
    Management


    Department
                                 Call to Action
    «Look & Feel»
Retail Laboratory — physical simulation of opportunities
CIIC background
Magnet Health & Beauty opportunities in Hypermarket
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
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
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
Male Shopper research that was held especially for Magnet
confirmed the necessity to create Male Grooming area
 Magnet male shoppers desires and wishes*:
Separate Male Grooming area was created in Magnet
Male products can now be easily found and navigated
inside the store




                                     Before
           After
Navigation proposal for Magnet Hypermarkets
in Virtual Reality
We agreed on Health & Beauty design and navigation
elements in Hypermarkets
New category navigation attracts shoppers
to Health & Beauty area
Navigation elements are visible from any point in the store
and attract shoppers into Health and Beauty department
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
TG decoration attract shoppers attention to promo offers




                                                           Before




                                                           Before
          After                         After
Dividers make category well organized and fix planogramms




             After

                                                            Before
Shoppers like new Health and Beauty area in Magnet




                            WELL
                            DONE
Magnet – Unilever: future plans for collaboration




1



2

3
Thank you!
Nadezhda Butrimova




  Mariya Troshina

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Ecr award unilever magnit

  • 1. Magnet—Unilever: Winning together with new technologies in Health and Beauty
  • 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
  • 14.
  • 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