FINAL

H$E BULLS
Finding the perfect
shopper
Unilever, Lipton
17/11/2015
Semifinal
H$E BULLS

McKinsey & Company |H$E BULLS 1
24%
35%
25%
6%
10%
Hypermarkets Supermarkets
Discount stores Bazaars
Traditional trade
During our work target audience was defined, factors which would make
them buy our products determined and new sales channels created
Target audience was determined and
ranked by the profit it can gain…
…right product, pricing, placement and promotion
were offered to clarify each group’s needs…
…finally, new channels were proposed, and
the most beneficial is gift shops.
1. Heterogeneous
Homogeneous:
2. Colleagues
3. Classmates
4. Friends
5. Hobby group
6. University
Products & Pricing:
 Tea house 125
 Snowman 274
 Thermos Mug 387
Price*, rub.
* - for average city; **-Direct Internet Advertisement
Placement*:
Promotion:
Real life Virtual
Discounts QR-code
Combo sets Site development
Promoters
Discussion forum
DIA**
New channels:
 Special gift shops
 Kiosks in molls Any
 Households stores
 Book shops
Profit per shop*, rub.:
Possible products
* - During NY period
25600
27600
54900
88400
1
2
3
4
Appendix #3, #4

Contents
 Segmentation
 Targeting
 Product line concept
 Positioning
 New channels
 Possible risks & Financial outcomes

Generally, needed auditory consists of medium aged women with income
higher than low
Source: www.bfm.ru/news/282758; team analysis
A person, who
is supposed to
buy 10 Lipton
festive
products is…
…provided enough to
afford himself buying
this number of products
…fits brand concept:
innovative, creative
person
Is not likely to be older
than 50 years
his income is at the
socially acceptable
level or higher
…loves New Years
traditions, tends to be
sensual, emotional
More likely for women
• Woman commonly
choose gifts
• Age from 20-50
• Income higher than
low+ level

Age
Total segment of possible buyers also excludes young or high income
buyers
Income
20 30 40 50 60
Low+
Medium
Medium+
Rich
Additional constraints:
• People with high income
are more likely to buy
more expensive gifts
• People aged less then 20
are unlikely buying Lipton
gift
People which can buy 10 Lipton festive products

Age
Direct dependency of age and spending on gift implies cutting of area of
lower income and age
Income
20 30 40 50 60
Low+
Medium
Medium+
Rich
Additional constraints:
gift
• Older you are, more
money you can spend on
such things as presents
People which can buy 10 Lipton festive products

Age
Total segment consists of buyers with income from low+ to high and aged
20-60
Income
20 30 40 50 60
Low+
Medium
Medium+
Rich
gift
• Older your are, more
money you can spend
such things as giving
presents
• Old people with high
income are relatively
more innovative
Additional constraints:People which can buy 10 Lipton festive products

 Segmentation
 Targeting
 Positioning
 New channels

Description Buy a plenty of gifts for a certain group of people
This group unites all people who buys a lot of
presents for their relatives, friends, neighbors, etc.
Main
features
• Initiative member of a group
• Mostly same gifts
• Shared budget
• Give presents at the usual meeting point
(work, school) or at the place of celebration
• Sociable, active person
• Values New Year traditions
• Give presents to many people in many places
• Wants to make nice; create an image of a kind
and generous person
• Creates new contacts
Scheme
Target audience
Heterogeneous groupHomogeneous group
Source: “Какие подарки дарят на Рождество жители Швеции, Канады, Германии и США”; team analysis
Two groups of buyers: ones buying many gifts for a group and ones
who allocate gifts between many detached people/groups

Colleagues Friends Classmates University group Hobby group
Age
Income*
Motivation Inner / External Inner External Inner Inner
Frequency** Common Moderate High Low Low
Place of giving
gift
Office, celebration
place
Celebration place
School, celebration
place
University, college Place of meeting
Comments
Can be sponsored by
company
Gifts are used as a part
of celebration.
Gifts are part of
celebration. Can be
given to teachers.
Strongly determined by
an initiator
Strongly determined by
an initiator. Gifts may
refer to the hobby
20 60 20 40 30 45 20 25 20 60
M H HM+ HL+ L+ M M H
* - L+ - low+, M – medium, M+ - medium +, H - high ** - Frequency of occurrence among segment
Corresponding to group specifics “homogeneous” buyers split into:
colleagues, friends, classmates, university and hobby groups
Source: “Office Holiday Gifts: Who To Include, How Much To Spend And What To Buy”; http://www.osd.ru/osdforum; team analysis

To determine preferences of “heterogeneous” buyers their personality and
socioeconomic position should be analyzed
Psychological
Personal features Gift-giving factors
1. Sociable, communicative
2. Active person
3. Values New Year traditions
4. Enjoys giving gifts
5. Maintains family ties
1. Family traditions, Annual habit
2. To create a nice self-image
3. Desire to please people around
4. Maintain social network
5. Giving a gift in response
1. Women commonly initiate gift purchase
2. Citizen of a town or city
3. Gift purchase – part of a NY preparation
4. Likely to have a medium or big family
5. 10-20 constant social contacts
Social Economic

Age
Income
20 30 40 50 60
Low+
Medium
Medium+
Rich
…frequency of occurrence was found
for each group…
…frequency of multiple gifts
purchase was calculated…
Size of each group was considered as an important
factor…
…finally priority for each
group was determined.
1. Heterogeneous
2. Colleagues
3. Classmates
4. Friends
5. Hobby group
6. University
Priority
Colleagues
Moderate
Friends
Moderate
Classmates
High
University group
Low
Hobby group
Low
Heterogeneous ~3,6% of medium-large families
Official statistics on age and income
distribution of Russian population
Official statistics on employment,
education. Along with comparison
method and team analysis
Comparison, social
traditions and team
analysis
Each step
was based
on:
Priority was determined
by estimated number of
gifts purchased by each
group
According to the total number of gifts bought by each group, the most
important groups are heterogeneous, classmates and colleagues
Source: http://www.gks.ru; team analysis
Appendix #1, #2

 Segmentation
 Targeting
 Positioning
 New channels

Product line satisfies preferences of the target audience and
must be feasible for producing
Target audience preferences
(consumer side)
Lipton`s brand concept
(producer side)
Product concept brings festive
atmosphere
Gifts contain elements of established
New Year traditions
Design diversity
Compact , bright, memorable, and cute
gift
Creative and innovative concept
Low costs of production
New Year theme - the basis of the
product concept
Direct association with the Lipton brand
Production is not high-tech, capital- and
labor-consuming
Variety of the raw-materials suppliers
Source: team analysis

Low price segment is presented by a set of decorated houses
filled with 25 tea bags
Main concept Advantages
Happy
New
Year
X25
8cm
12cm
New Year Tea house
Tea bags are stored
inside
The interior space is filled with
20-30 unique
bags of tea, each with a
hidden wish for New Year
Topical winter, festive images:
snow, decorations etc.
Collection of tea houses
designed in Russian, German,
and Chinese traditional styles
Useful present, which can be
used as a storage for tea bags
even after the feast
Diversified design allows to
pick a personalized gift
Supports an atmosphere of
solemnity
Compact, bright, memorable
and cute present
Tea bag labels are made in
the shape of a Christmas tree
and contain a printed wish on
the back side
Additionally
Different
congratulations
are possible
*Provided illustration reflects only the main idea, but not detailed design concept

For middle price segment tea snowman, which is very useful
gift, filled with a leaf tea appears
Main concept AdvantagesTea Snowman
Balls are used for brewing tea:
the small one for cups, the
medium for pots. The biggest
one for storing
Snowman’s chain is made
magnetic in order to pull balls
out of tea
Cute snowman made of 3
separable metal balls with
opening mechanism
Useful and impressive present
Stylish addition for a festive
interior
Creates New Year
atmosphere for a tea ceremony
Set of different herbs such as
mint, thyme etc., along with a
comprehensive guide on
herbal teas
Additionally
15cm
6,5 cm
1
2
3
2-3 cups
4-5 cups
6-7 cups
Can bring new experience to
a routine tea drinking

In the high price segment is thermos mug, which will never let
your tea to cool down
Main concept AdvantagesThermos Mug
Mug is additionally filled with
the package of a great black
tea in order to provide
everything for a winter tea
ceremony
Decorated in a New Year style:
traditional symbols and
images
A New Year collection of
thermos mugs
Multifunctional concept is
demanded by a wide target
audience
High price is compensated by
the valuable content
Diversified design allows to
pick a personalized gift
Inner print can be easily
changed
LIPTON
HAPPY NY
Diversity is based on color
theme of a print: red, blue,
green

 Segmentation
 Targeting
 Positioning
 New channels

To meet various customers needs proper product features,
pricing, placement and promotion should be developed
Why our products will be
bought?
Different features of
products satisfy each
group’s needs
Promotion was provide
unique for the needs of
each group
Price of our product in
condition with is the
best in its segment
Placement is made
considering weighted
averages of placements
for each group

Tea house is mostly universal gift, while snowman and mug
are more specific and suits several groups
Product
What are the main requirements for the gift
Most likely chosen product
Tea House Snowman Thermos Mug
Heterogeneous
Cute, and memorable gift. Diversification is
valuable.
Gift may be used in day-to-day life.
✓ ✓ ✓
Hobby group
Gift is of a symbolic value: it should be bright and
impressive ✓
Colleagues
More formal relationships increases value of
usability.
Gift must be simple and universal
✓ ✓
Friends
Gift must be bright, interesting and funny. First
impression is important ✓ ✓
University group
Gift must be in some way innovative and creative.
However price is an important constraint ✓
Classmates
Gift must be entertaining, i. e. it can be transformed
in a toy or bring fun to a traditional tea-drinking ✓ ✓

Suggested product concepts demonstrate good competitiveness
relative to substitutes given 25% mark-up
Assumptions
• Competitiveness coefficient (CC) estimates the numerical value for the consumption potential of a particular product,
taking into consideration price, weight of tea in the product, and brand attractiveness
• CC is standardized in order for data to be comparable
• 25% mark-up on suggested product concepts was assumed
0,81
1,27
0,90
1,67
1,42
Ahmad Novel
Thyme
Brooke Bond
NY Ball
Maysky Tshay
NY Ball
Nadin Happy
NY
Lipton NY Tea
House
Low price segment
0,99 1,00 1,03
1,19
1,12
1,19
Ahmad Tea
Summer
Thyme
Tess NY Leaf
Tea Set
Hyleys Ded
Moroz and
Snegurochka
Hyleys
Winter
Fairytale
Nadin Lipton
Snowman
Medium price segment
0,94
0,71
0,80
0,97
1,58
1,49
Ahmad Tea
Orange
Blossom
Ahmad Tea
Orange
Blossom
Ahmad Tea
Клубника со
сливками
Ahmad tea
Tea
Christmas
Tree
Ahmad Tea
English
Afternoon
Tea
Lipton NY
Thermos
mug
High price segment
cc cc cc
Biggest threat
P=137 P=273 P=406
Concept price given 25% mark-up
Hilltop
Angels
Hilltop
English
evening
Basilur
Black`n
White

0,99 1,00 1,03
1,19
1,12 1,19
Ahmad Tea
Summer
Thyme
Tess NY Leaf
Tea Set
Hyleys Ded
Moroz and
Snegurochka
Hyleys
Winter
Fairytale
Nadin Lipton
Snowman
Medium price segment
0,81
1,27
0,90
1,67 1,67
Ahmad Novel
Thyme
Brooke Bond
NY Ball
Maysky Tshay
NY Ball
Nadin Happy
NY
Lipton NY Tea
House
Low price segment
0,94
0,71
0,80
0,97
1,58 1,58
Ahmad Tea
Orange
Blossom
Ahmad Tea
Orange
Blossom
Ahmad Tea
Клубника со
сливками
Ahmad tea
Tea
Christmas
Tree
Ahmad Tea
English
Afternoon
Tea
Lipton NY
Thermos
mug
High price segment
To win the market – we should adjust prices, in order for CC to be
the greatest among competitors
Assumptions
• Competitiveness coefficient (CC) estimates the numerical value for the consumption potential of a particular product,
taking into consideration price, weight of tea in the product, and brand attractiveness
• Competitiveness coefficient (CC) is standardized in order for data to be comparable
• Mark-ups for concepts are chosen such that CC becomes the greatest for each segment
cc cc cc
Biggest threat Concept min. price which max. CC
P=125 P=274 P=387
Prices
P=125
P=274
P=387
Hilltop
Angels
Hilltop
English
evening
Basilur
Black`n
White

Lipton festive production should be mostly placed in hyper- and
supermarkets in cities and supermarkets in smaller towns
The main differences between
types of stores are in distance
to the shop, average price and
variety of choice. 34%
29%
25%
5%
5%
48%
24%
8%
21%
Big cities
Medium towns
To find a perfect placement different
shops types should be analyzed…
…then preferences of each group and its weighted
value should be analyzed…
…the following distribution was proposed for
two types of settlements.
Hypermarket
Supermarket
Discount store
Traditional trade
Distance
Price
Bazaar 0% 20% 40% 60% 80% 100%
University group
Hobby group
Friends
Classmates
Colleagues
Hetero-geneous
Distance Price Choice
Source: team analysis, case info
Heterogeneous
43%
26%
23%
6%
2%
1%
1% Group weight
Appendix #3
Circle size - variety of choice

Tea houses should be placed with festive products; snowman and
mug with other tea gift sets
Departures priority
7
6
3
2
3
6,5
1
1
0,5
0% 20% 40% 60% 80% 100%
Tea&Coffee New Year
Other
Main shelf placement
Among other low-
price gifts. Shelf and
container are both
appropriate
Shelfs with other tea
gift sets, containing
cups, pots, etc.
In medium price
sector
Shelfs with other tea
gift sets, containing
cups, pots, etc.
Premium price
sector
~70%
~20%~10%
In hypermarkets and some supermarkets it is
possible to place such a shelf in festive
departure to attract shoppers
…along with position on the
appropriate shelf…
…in some shops it is also possible to place a separate
Lipton festive products shelf
For each product the most important departures
were found…

Promotion suggestions are divided into two groups: real-life and
virtual
Real-life
promotion
Virtual
promotion
Combo sets

2 thermos mugs + tea house – decision for a family
2 thermos mugs + snowman – decision for a couple
3 tea houses in different styles – for a group of mates
3 thermos mugs in different styles – for colleagues
Starting from the 4th Q packages will be equipped with
a sticker and a table for 30 stickers. Stickers provide
cumulative discount on a single purchase (0,5% each
sticker, up to 15% in total)
Stickers provide cumulative discount on a single
purchase (15% max.).
Combo sets
People in stores and other places, where Lipton`s
products are present, dressed as winter characters
(Santa or Snowman), suggesting to take a photo and
distributing printed advertise
Real-life promotion Description Groups
homogeneous
heterogeneous
friends
classmates
heterogeneous
friends
heterogeneous
classmates
Real life promotion affects mostly buyers, choosing gifts at shops:
heterogeneous shoppers and friends

Festive design for the main site +
description of festive characters (Santa and
Snowman), animated by real-life promoters (real-life
promotion)
Link on each package to a web-site with the uploaded
video-congratulation for the receiver and additional
information about Lipton festive products
Generally web promotion and video-congratulations affect buyers, who
search gifts online. Mostly colleagues and classmates
Artificial supporting the level of positive comments and
reviews in the Internet
Direct Internet Advertisement – purchase of first-raw-
positions in the browser search results list
Virtual promotion Description Groups
heterogeneous
colleagues
classmates
hobby groups
colleagues
university group
colleagues
colleagues
classmates
classmates

 Segmentation
 Targeting
 Positioning
 New channels

In order to increase sales additional channels were made for both ordinary
and small wholesale shoppers
Special Gift shops Kiosks in molls Households stores Book shops
Logic
People comes here directly
to buy gifts
Many people before NY walk
in the shopping malls
thinking about possible
presents
Household’s goods can be
given as a NY gift, which can
be complemented or
competed by Lipton
People buying book as
present can improve their gift
adding Lipton product
Average Income*
Possible products Any
Comments
Cooperating with big gift
shops, for example
“Красный куб”
Cooperating with similar
kiosks (“Вкусная Помощь”)
or placing own one
Placing our products in such
stores near things
connecting with tea
Products are supposed to be
near gift books
M HL+ M
* - L+ - low+, M – medium, M+ - medium +, H - high
M H HL+
Source: http://shevchenko.rggu, rbc.ru, team analysis

According to the net profit per shop, each channel’s performance was
examined, the most beneficial one is gift shop.
…shares of each
type of product, …
…channel’s owner
commission…
To estimate channel’s efficiency, number of Lipton’s
festive sales per shop, during NY holidays, …
…finally priority for each
channel was determined.
1. Special Gift
shops
2. Kiosks in
molls
3. Households
stores
4. Book shops
Priority
Special Gift
shops
Moderate
Kiosks in
molls
Low
Households
stores
Low
Book shops Moderate
Team analysis and financial
statements of average
shops in the industry
Assumption about
the inverse
relation between
price and demand
Prices were taken,
according to which our
products are leaders in
its segments
Each step
was based
on:
Priority was determined
by combining results with
possible risks
…net profits per shop, were
considered, …
310
670
1000
1620
SnowmanTea house Thermos mug
25600
27600
54900
88400
1
2
3
4
Positive Base Negative
Possible scenarios:
Average entry
commissions for
each type of shop
Appendix #4

 Segmentation
 Targeting
 Positioning
 New channels
 Conclusion

A concept of actions to attract shoppers, which buy more than ten presents at once was
proposed for Lipton festive segment.
Main points:
▪ Target audience. Two main types of shoppers were determined: heterogeneous and
homogeneous, where homogeneous split into five groups. Groups were ranked according to the
profit they can gain. Ranking was used in determining value of each group, which influenced future
decisions.
▪ What are proposed products? 3 new product concepts were introduced: Tea House, Tea
Snowman and Thermos Mug
▪ Positioning. Proposed products meet various consumer preferences. For each gift the most
beneficial position in its price segment was developed. The main ways of realization are
hypermarkets in big cities and supermarkets in medium ones. Additionally different promotion
initiatives, which covers all target groups, were suggested.
▪ New channels. The following sales channels for Lipton festive products were suggested: gift
shops, kiosks in malls, household stores and book shops. The first have the highest potential
Conclusion

Questions?
Just raise your hand.

Nosulich Aleksandr Kheifets Oleg
alexsergnos@gmail.com
+7(915)4218032
HSE ICEF
BSc 2nd year
kholeg96@gmail.com
+7(919)1006201
Sanofi Health Guardians
Finalist
High Quality Award 15%
Cup Russia
HSE ICEF
BSc 2nd year
Sanofi Health Guardians
Finalist
Cup Moscow
Samarenko Aleksandr
samaral_96@mail.ru
+7(916)259-73-20
HSE ICEF
BSc 2nd year
Cup Russia
We are a team of perspective, non-trivial thinking students, who despite of
age have enough experience

 Appendix

Appendix #1
Calculating approximate number of gifts bought by each group
Total age segment
Proportion of proper
income segment
Total age x income
segment
Frequency of
occurrence
# of occurrences
Frequency of
multiple gift
purchase
# of gifts bought
Colleagues 85 524 000 0,4 34 209 600 0,75 25 657 200 0,2 5 131 440
Friends 54 519 000 0,3 16 355 700 0,45 7 360 065 0,15 1 104 010
School 11 420 200 0,6 6 852 120 0,96 6 578 035 0,7 4 604 625
University 12 475 400 0,6 7 485 240 0,2 1 497 048 0,1 149 705
Hobby 85 524 000 0,4 34 209 600 0,1 3 420 960 0,1 342 096
# of families
[000]
Frequency of giving
small gifts
Families giving minor
gifts
Frequency of multiple
gift purchase
Families giving more
then 10 gifts
[000]
Average number of
gifts
# of gifts bought
Heterogeneous 20 000
0,6
12 000 6% 720 12 8 640 000

Appendix #2
Calculating total sales for each group
# of gifts bought
[000]
Proportion of
houses
Proportion of
snowmen
Proportion of
mugs
Average
price
Total market
(Mln rub)
Colleagues
5 131
75% 5% 20% 184,85 948,55
Friends
1 104
75% 20% 5% 167,90 185,36
School
4 605
86% 12% 2% 148,12 682,04
University
150
85% 8% 8% 155,83 23,33
Hobby
342
80% 18% 2% 157,06 53,73
Heterogeneous 8 640 60% 25% 15% 201,55 1 741

Appendix #3
Distribution between shop types among all groups
50%
15%
40%
20%
50%
19%
28%
36%
30%
34%
15%
30%
12%
34%
20%
35%
33%
37%
8%
1%
8%
6%
1%
2%
2%
14%
2%
5%
1%
12%
Heterogeneous
Colleagues
Friends
Classmates
University
Hobby
Distribution for cities
Hypermarkets Supermarkets Discount stores Bazaars Traditional trade
47%
51%
55%
50%
50%
47%
20%
24%
20%
24%
28%
29%
8%
5%
5%
8%
2%
8%
25%
20%
20%
18%
20%
17%
Heterogeneous
Colleagues
Friends
Classmates
University
Hobby
Distribution for towns

Appendix #4
Estimating financial outcomes of establishing new sales channels
Average # of visitors
daily
Increase due
to NY # at NY
Probability
of buying
Probability of choosing
Lipton in case of buying
Number of Lipton
per day
# of Lipton for
the period
Giftshop 50 10 500 0,925 0,25 115,625 1618,75
Kiosk 12000 3 36000 0,005 0,4 72 1008
Household 100 1,2 120 0,8 0,5 48 672
Bookshop 100 1,5 150 0,6 0,25 22,5 315
New year period 14 days
Profit per unit (rub)
House 27,3
Snowman 54,6
Thermos 81,25
Possible scenarios for each channel
Negative Base Positive
Giftshop 21 755 25 594 28 153
Kiosk 23 391 27 518 30 270
Household 46 596 54 818 60 300
Bookshop 75 126 88 384 97 222
Total 166 867 196 314 215 946

Appendix #5
Calculating prices and CC for low and high price segments
Product Segment
raw
materials
labor
expenditures
capital
expenditures
distribution
costs
other
expenses
Costs, ₽
recommended
price
Market
domination price
Market domination
mark-up
New Year tea house Low 92,5 5 5 5 2 109,5 136,875 125 14%
Tea Snowman Middle 197,5 6 6 5 4 218,5 273,125 274 25%
Thermos Mug Premium 296 8 10 5 6 325 406,25 387 19%
Product price Weight of tea Brand coefficient Coefficient of threat Normalized coefficient of threat
Ahmad Novel Thyme 176 90 1,7 13,0 0,81
Akbar «Novogodny» 200 150 1,4 11,2 0,70
Brooke Bond NY Ball 98 30 1,7 20,5 1,27
Maysky Tshay NY Ball 107 20 1,4 14,4 0,90
Hyleys 192 90 1,5 10,2 0,63
Hyleys 169 48 1,5 10,3 0,64
Nadin 156 50 1,5 11,5 0,71
Nadin 81 50 1,5 26,8 1,67
Nadin Happy NY 81 50 1,5 26,8 1,67
Ahmad Orange Blossom 594 295 1,7 3,8 0,94
Hilltop Angels 550 200 1,7 2,9 0,71
Ahmad 715 376 1,7 3,2 0,80
Hilltop Angels 610 325 1,7 3,9 0,97
Ahmad Afternoon Tea 384 235 1,7 6,4 1,58
Low price segment
High price segment

Appendix #6
Calculating competitiveness coefficient for medium price segment
Product price Weight of tea Brand coefficient Coefficient of threat
Normalized
coefficient of threat
Ahmad Tea Summer Thyme 321 165 1,7 7,1 0,99
Ahmad Tea Summer savory 346 165 1,7 6,5 0,90
Ahmad Tea Strawberry Cream 350 200 1,7 6,8 0,95
Ahmad Tea English Afternoon
Tea
384 235 1,7 6,4 0,89
Tess NY Leaf Tea Set 274 103 1,6 7,2 1,00
Maitre 310 90 1,6 6,0 0,84
Maitre "Ded Moroz " 320 120 1,6 6,2 0,86
Hyleys Ded Moroz and
Snegurochka
248 90 1,5 7,4 1,03
Hyleys Winter Fairytale 221 90 1,5 8,5 1,19
Nadin 284 90 1,5 6,3 0,88
Nadin 237 100 1,5 8,0 1,12
Nadin 237 100 1,5 8,0 1,12
Nadin 237 100 1,5 8,0 1,12
Nadin 237 100 1,5 8,0 1,12

FINAL

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