CaseBusters proposes a promotion strategy to increase Timotei's market share in Russia by 1% by June 2014. The strategy involves co-branding campaigns with Disney films Brave and Monsters University, as well as continuous advertising. Co-branding is estimated to increase sales by 115 million rubles in 2012 and 150 million in 2013. Continuous advertising through TV, print, internet and subway is allocated 40 million rubles annually. The total budget of 200 million rubles is projected to boost Timotei's sales to 1.25 billion rubles and capture a 4.5% market share by June 2014, achieving the goal.

1. CaseBusters
Timotei promotion strategy
Yuriy Kotikov
Ilya Kuznetsov
Maksim Sofronov
Maxim Fedotov

2. Our primary objective is to increase Timotei market share by 1% through promotion
activities by June 2014
Market Overview and Project
Goals
To achieve this goal Timotei is to capture 4,5% of the Russian
shampoo market by June 2014 This implies a 36% increase in revenues,
• The market is highly saturated which
Shamtu 5% million rub.
+36% means market share gain can be
Pure line 8%
achieved only by stealing share from
Shauma
7%
1 249 competitors
Timotei 1 078
• Timotei is in the middle price segment.
Others 4,5% 916
Its main competitors are Pure line,
Shamtu and Shauma, with Pure line
being a part of Unilever’s portfolio
• Timotei has reached maturity and needs
77%
promotion campaign to retain customers
migrating to other segments
2012 2013 2014
Marketing is one of the factors driving revenues through changing the Problem Structure
number of customers and consumption per customer
Number of
Marketing
customers
Campaign
Items sold
Continuous
Major Events
Consumption Advertising Activities
per customer Product line
Revenue
• media co-branding advertisements through:
• accompanying events •TV
Average price •Internet
• accompanying
per item External factors
advertising activities •Print Media
•Metro, etc.
Sources: Case «Changellenge: Russia 2012», analysis by CaseBusters
Timotei promotion strategy Changellenge Russia 2012 CaseBusters

3. In developing the promotion strategy we have analyzed the co-branding opportunities
on the Russian Market with regard to film releases
Strategic fit* Co-branding Rationale
1,0
Strategic fit of Timotei with the film release is essential for ensuring successful promotion
campaign Targeted
0,9 Brave
films
is a family cartoon featuring a girl with bright red hair, which is the best 0,8 Ice age 4
Brave fit for Timotei. Besides, we have already successfully cooperated with Monsters University
Disney 0,7 6
Madagasсar 3
featuring beloved characters, viz. Scrat, will attract broad audience and 0,6
Ice Age 4
boost sales.
0,5 7
Monsters
story may be used to promote Timotei through charismatic characters 0,4 4
University
0,3 10
will ensure the commercial success as the characters are well-known to
Madagascar 3 8
the audience and will boost brand loyalty 0,2 1
0,80 0,85 0,90 0,95 1,00
A Movies Index reflects the potential of a film to cover the target audience and shows the
most attractive films in terms of co-branding opportunities Movies Index*
1,00
Legend
0,10 Disney 1. Planes
0,10 Paramount Pictures
0,20 0,15 4. Snow White
0,15 0,15 20th Century 6. Rise of the Guardian
0,15 Universal Pictures 7. How to train your Dragon 2
Warner 8. Hobbit
Sony
Index Release Budget Genre Film Target Stars Franchise 10. Hotel Transylvania
Date Expectancy Audience involved
rate
Sources: Case «Changellenge: Russia 2012», analysis by CaseBusters * see appendices 2,3 for analysis
Timotei promotion strategy Changellenge Russia 2012 CaseBusters

4. Analysis reveals that Timotei’s primary promotion channels shall be TV, Print media,
Internet and Subway
Promotion Channels
Shampoo consumers can be divided on the basis of several Channel efficiency is a function of such factors as affinity, audience perception,
criteria: price sensitivity, importance of brand and quality information utility, channel popularity and audience coverage
Promotion channel efficiency index*
Importance of brand and quality 73 75
70
1,0 65
58
0,9 Wealthy bachelors Affinity 53
50
0,8 Wealthy families Perception
0,7 Utility
0,6 Moderate income families Popularity growth
0,5 Audience coverage
0,4 Moderate income bachelors
TV Radio Print Internet OOH** Subway Cinema
0,3 Media
0,2 Enormous TV audience outweighs moderate
TV
0,1
Elderly people watchers’ perception and affinity
0,0 Print media is an equally attractive promotion
0,0 0,1 0,2 0,3 0,4 0,5 0,6 0,7 0,8 0,9 1,0 1,1 Print Media channel in all respects considered
Price sensitivity
Internet’s penetration has been constantly growing
Internet
Timotei’s target audience: moderate income lately with reasonable affinity and perception
families and bachelors (mainly women)
Subway provides extreme concentration of target
Subway
audience and its decent perception
Sources: Case «Changellenge: Russia 2012», analysis by CaseBusters * - see Appendix 4, ** - worth considering
Timotei promotion strategy Changellenge Russia 2012 CaseBusters

5. Two co-branding campaigns with films «Brave» and «Monsters’ University» by Disney
will lead to Timotei’s significant increase in market share
Co-branding with Disney’s film «Brave» in Summer 2012 will increase Timotei sales Co-branding Campaigns
Promotion channel efficiency index*
by additional 115m. Rub.
Get a better prize
Buy stickered Get a prize for 2
and a chance to
Timotei stickers
win iphone for 5
TVH
• Total number of broadcasts will
20 Aug 2012 be around 850 distributed
1 Jun 2012
among Ch1, Russia 1, NTV,
TNT
Register sticker Take part in the Final family
on the web site video contest event
Internet
• 1,6mln SKU will participate in promotional campaign with uplift accounting for 680k SKU.
• Extensive banner and
• Main contest will involve sending a clip about a brave thing you have done with a trip to Scotland as the
contextual advertising through
ultimate prize
social networks and most visited
• More than 40000 low-priced and 15000 middle-priced prizes at participant’s option as well as 165 iPhones and
sites like Yandex.ru and mail.ru
a trip to Edinburgh will be awarded
• Final family event will include funny competitions, family activities and iphone winners announcement
Joint advertising campaign with Disney’s film «Monsters’ University» will result in Print
150m. rub. sales growth Media • Double-page spreads in
Cosmopolitan and Liza
Buy stickered Get a chance to magazines as well as ads in
Get a prize for 2
Timotei gain a better prize other printed media sources
stickers
for 4 targeted at our prospective
buyers
1 Jun 2013 1 Aug 2013 Subway
• Placing banners with film
Register sticker Take part in the Brochure with characters at advertising boards
on the web site photo contest best photos above escalators and inside
metro cars will allow Timotei to
• 2,15mln SKU will participate in promotional campaign with uplift accounting for 780k SKU. reach its target audience
• Main contest will involve sending photos with people dressed like monsters with a family car as the main prize.
• More than 53000 low-priced and 26000 higher-priced prizes as well as a family car will be awarded
• When the campaign is over the photo gallery will be created in Flickr to capture memorable moments
Sources: Case «Changellenge: Russia 2012», analysis by CaseBusters
Timotei promotion strategy Changellenge Russia 2012 CaseBusters

6. Continuous advertising activities require 40 million rubles a year that will be
distributed among the four major advertising channels
TV shampoo ad market share is to be increased to 9% and 23.5 m and Internet is growing in popularity and 4.8 m is allocated yearly to
21.6 m respectively is allocated for these purposes advertising through this channel
TV Channel 13% Vkontakte * Vkontakte – 10 m targeted
№ of ads Cost, rubles appearances throughout 6 months
6% (2012-2013) Odnoklassniki
9% 27% Sept-Jan each year
1TV 146 9 396 000 Mail.ru
Russia1 94 3 523 500 * Odnoklassniki – 24 packages of 1.2
m weekly appearances (6 months
NTV 99 3 523 500
total)
94% 91% TNT 248 5 872 500 60%
Domashniy 109 1 174 500 * Mail.ru – package Russia 45 m 4
Total 696 23 490 000 times (before bank holidays)
Timotei
2010 2014 Internet
Others advertising
Timotei TV shampoo ad share
Print Media will remind the customers about our brand, with 7,8 m and Subway is an effective means of targeting current/would-be customers
7,2 m distributed each of the two years. and 3.9 m and 3.6 m will be allotted to this means of advertising
2012-2013 2013-2014 • Lisa attracts our
Koltsevaya Line 2012-2013 2013-2014
customers. Advertising in
this magazine is highly Number of cars to use 35 32
1/3 270000 270000
targeted Places in car 106 106
column
Number of places 3710 3392
Weeks 26 26 • Buying 1/3 column for 26 Cost per place (BEND) 955 955
Cost 7.02 m 7.02 m issues (6 months, autumn- Total cost for ads 3543050 3239360
winter) will smoothen the Number of ads sets 37,1 33,92
Budget 7.83 m 7.2 m drop in demand for Timotei Cost of set 8580 8580
after the Major Event set Total costs for sets 318318 291033,6
for Summer Reminder 53632 69606,4
Sources: Case «Changellenge: Russia 2012», analysis by CaseBusters * see appendix 5 for analysis
Timotei promotion strategy Changellenge Russia 2012 CaseBusters

7. Spending 200m. rub. on co-branding and continuous promotion will allow Timotei to
boost its sales to 1250m. rub. and to capture a 4,5% market share by June 2014
Timotei promotion costs structure, rub. Promotion Cost
Continuous
promotion
3 750 000
7 500 000
7 500 000
15 000 000
Co-branding
75 050 000 41 300 000
3 750 000
9 200 000
9 200 000
18 300 000
Prizes
50 500 000
200 000 000 124 850 000 33 000 000
Promotion cost TV Print Media Internet Subway Others
Promotion campaign contribution to sales, m. rub. Economic Effect
1 200
Co-branding
• By June 2014 co-branding and continuous
Continuous promotion
promotion will contribute 250m. rub. and
Base-line 100m. rub. respectively to the Timotei
900
1250 revenue
• Proposed promotion campaign will ensure
meeting project goals by June 2014
0
2011 2012 2013 2014
Sources: Case «Changellenge: Russia 2012», analysis by CaseBusters
Timotei promotion strategy Changellenge Russia 2012 CaseBusters

8. CaseBusters
• Last year students of Economic faculty of MGIMO
Yuriy Kotikov Ilya Kuznetsov Maksim Sofronov Maxim Fedotov
Changellenge Moscow McKinsey Business Diving Changellenge Moscow McKinsey Business Diving
2011 winner 2012 semifinalist 2011 winner 2012 semifinalist

9. Appendix 1
Projected growth of the market and Timotei vs. Competitors (incl. Marketing Strategy)
Projected Value Projected Value Projected Value
Brands Value (RUR)/Year(2011)
(RUR)/Year(June 2012) (RUR)/Year(June 2013) (RUR)/Year(June 2014)
Timotei 889140000 915814200 1078044144 1249183652
Чистая линия 2032320000 2093289600 2111169782 2128238814
Shauma 1778280000 1831628400 1841658746 1850642447
Shamptu 1270200000 1308306000 1302636674 1295449713
Total competitors 5969940000 6149038200 6333509346 6523514626
Projected Value Projected Value Projected Value
Value (RUR)/Year(2011)
(RUR)/Year(June 2012) (RUR)/Year(June 2013) (RUR)/Year(June 2014)
Russian Market 25404000000 26166120000 26951103600 27759636708
Assumptions:
Market growth rate 3% per annum
Inflation of prices 0%
Source: Case «Changellenge: Russia 2012», analysis by CaseBusters
Timotei promotion strategy Changellenge Russia 2012 CaseBusters

10. Appendix 2
Movies Index and Strategic fit analysis
Factor Description Weight
Release date reflects whether a film is running in the seasonal peak (holidays, summer etc.) 10%
Budget matters as an indicator of how much is spent on marketing 20%
Genre shows whether a film fits the co-branding purposes 15%
Film Expectancy Rate is the percentage of people waiting for the film release 10%
Target audience determines what kind of audience the film will capture 15%
Stars involved attract additional attention 15%
Franchise depending on its previous success may influence the further popularity 15%
Total 100%
Factors considered Description
Character Image Will the characters of a film be suitable for advertising Timotei?
Plot peculiarities What a film is about. Is the plot fit for the advertising purposes?
Style Will a film encourage positive attitude towards the ad of Timotei?
Synergies with
Have we been developing mutual relations with the studio that released a film?
studios
Source: Case «Changellenge: Russia 2012», analysis by CaseBusters
Timotei promotion strategy Changellenge Russia 2012 CaseBusters

11. Appendix 3
Movies Index calculation
Studio Film Name Release Date Release Budget Genre Expectancy Rate Target Audience Stars Involved Franchise Rating
Disney Wreck-it-Ralph November 1st, 2012 0,1 0,15 0,15 0,097 0,15 0,05 0,1 0,797
Disney Beauty and the beast Spring, 2012 0 0,05 0,15 0,092 0,15 0,05 0,15 0,642
Disney Planes August 31st, 2012 0,1 0,2 0,15 0,088 0,15 0,05 0,1 0,838
Disney Brave June 21st, 2012 0,1 0,2 0,15 0,085 0,15 0,15 0,1 0,935
Disney Monsters University June 21st, 2013 0,1 0,2 0,15 0,089 0,15 0,15 0,15 0,989
Disney Frankenweenie October 4th, 2012 0,05 0,15 0,15 0,085 0,1 0,15 0,1 0,785
Universal Pics Snow white June 14th, 2012 0,1 0,2 0,1 0,083 0,1 0,15 0,15 0,883
Universal Pics Battleship April 19th, 2012 0 0,15 0,05 0,044 0,1 0,1 0,05 0,494
Paramount Pics Titanic April 1st, 2012 0 0,2 0,05 0,087 0,15 0,15 0,15 0,787
Paramount Pics The Avengers May 3rd, 2012 0 0,2 0,1 0,092 0,1 0,15 0,15 0,792
Paramount Pics Madagascar June 7th, 2012 0,1 0,2 0,15 0,083 0,15 0,15 0,15 0,983
Paramount Pics Fun size October 11th, 2012 0,05 0,15 0,15 0,096 0,1 0,1 0,05 0,696
Paramount Pics Katy Perry Jule 5th, 2012 0,1 0,1 0,05 0,078 0,1 0,1 0,05 0,578
Paramount Pics Rise of the guardian 0,05 0,2 0,15 0,08 0,15 0,15 0,05 0,83
Paramount Pics The Guilt Trip 0,1 0,05 0,1 0,096 0,1 0,05 0,05 0,546
Paramount Pics Hansel and Gretel: 0,05 0,1 0,05 0,086 0,05 0,05 0,05 0,436
Paramount Pics Iron man 3 0,1 0,2 0,05 0,089 0,05 0,15 0,15 0,789
Paramount Pics Transformers 4 June 27, 2014 0,1 0,2 0,05 0,086 0,05 0,15 0,15 0,786
Paramount Pics How to Train Your Dragon 2 June 20th, 2014 0,1 0,2 0,15 0,094 0,15 0,05 0,1 0,844
Warner The Lucky One May 17th, 2012 0 0,05 0,05 0,081 0,1 0,1 0,05 0,431
Warner The Seventh Son February 14,2013 0,1 0,1 0,15 0,085 0,15 0,15 0,05 0,785
Warner The Hobbit: December 20th, 2013 0,1 0,2 0,1 0,093 0,1 0,15 0,15 0,893
20th Century Robopocalypse Jule 3, 2013 0,1 0,2 0,05 0,09 0,05 0,15 0,05 0,69
20th Century Leafmen 3D May 30, 2013 0,1 0,15 0,15 0,09 0,15 0,05 0,05 0,74
20th Century Parental Guidance November 22nd, 2012 0,05 0,1 0,15 0,094 0,1 0,05 0,05 0,594
20th Century Ice Age 4 Jule 12th,2012 0,1 0,2 0,15 0,086 0,15 0,1 0,15 0,936
Sony Hotel Transylvania Ocotber 18th, 2012 0,05 0,15 0,15 0,081 0,15 0,15 0,1 0,831
Sony The Pirates! Band of Misfits April 26th, 2012 0 0,1 0,15 0,092 0,15 0,15 0,1 0,742
Sony Premium Rush October 11th, 2012 0,05 0,1 0,05 0,086 0,05 0,15 0,05 0,536
Source: Case «Changellenge: Russia 2012», analysis by CaseBusters
Timotei promotion strategy Changellenge Russia 2012 CaseBusters

12. Appendix 4
Promotion channel efficiency index
Factor Scale Weight
Affinity 0 – 20% 20%
Perception 0 – 20% 20%
Utility 0 – 20% 20%
Channel’s popularity
0 – 20% 20%
growth
Channel’s audience 0 – 20% 20%
Total 100%
Channel Affinity Perception Utility Popularity growth Audience TOTAL
TV 14,5 9,1 15,0 6,5 20,0 65,1
Radio 15,1 15,6 4,0 5,2 10,0 49,9
Print media 16,5 17,8 20,0 2,9 13,3 70,5
Internet 14,6 13,1 12,0 20,0 13,3 73,1
OOH 17,0 18,2 8,5 5,7 8,3 57,8
Subway 20,0 20,0 15,0 11,8 8,3 75,1
Cinema 17,4 13,3 10,0 8,6 3,3 52,6
Source: Case «Changellenge: Russia 2012», analysis by CaseBusters
Timotei promotion strategy Changellenge Russia 2012 CaseBusters

13. Appendix 5
TV efficacy analysis and benchmarking of competitors’ TV activities
Correlation
Media Priority TV is the most efficient tool in terms of communicating brand messages
Communication/Media
to customers, billboards coming second together with in-store activities.
TV 0,997391366 1
H&S and Pantene have been able to increase their market share
Magazines 0,852823035 4
through extensive presence on TV. Benchmarking is a useful tool in
Posters 0,87643039 2
determining the TV advertising strategy Timotei should follow.
In-store activity 0,862397187 3
Total
In-store TV activity
Brand Communica TV Magazines Posters 2009 2010 Change
Activity GRPs
tion
H&S 65% 64% 7% 4% 10% Dove 1500 2100 40%
Pantene 63% 60% 9% 3% 9% Sansilk 3200 2350 -27%
Clear 61% 60% 10% 4% 12% Timotei 2000 3300 65%
Dove 60% 58% 11% 4% 12% Clear 5100 5100 0%
Timotei 58% 56% 8% 5% 11% Pantene 5800 6950 20%
Sunsilk 56% 54% 8% 4% 11% H&S 7050 7200 2%
Gliss Kur 49% 46% 6% 2% 5% Shamtu 2050 1500 -27%
Fructis 49% 47% 5% 2% 6% Clairol 2700 1000 -63%
Shauma 44% 42% 4% 1% 5% Fructis 7900 6100 -23%
Shamtu 39% 37% 3% 0% 4% Elseve 7200 6600 -8%
Garnier 0 3800 -
Nivea 3400 3550 4%
Share of TV shampoo Shauma 3500 4100 17%
Brand
advertising market Gliss Kur 3500 4100 17%
Pantene 12% Syoss 2000 3200 60%
H&S 11% Pure line 2375 5100 115%
Timotei 6% Others 0 1700 -
Source: Case «Changellenge: Russia 2012», analysis by CaseBusters
Timotei promotion strategy Changellenge Russia 2012 CaseBusters