Grooming Category

Project

in KARUSEL

Grooming Category Shoppers

In 60% cases consumers and shoppers are the

same

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

General Male Shopping Habits

Men Hunt for Products, they tend to follow targeted shopping and want to buy specific product and not survey the aisle

They have difficulties finding the items they look for, therefore want in-store consultancy but would hesitate to ask

If a man can't find the section he's looking for, he'll wheel about once or twice, then give up and leave the store without ever asking for help. You can watch men just shut down.

Men Look for Orientation Guidance, therefore they try to build on learned pattern, they look for male color coding and well known brands and tend to look for Good, Better – Best Guidance

Men are very picky when they buy new products

Opportunity to test

On Shelf Guidance

Consultancy

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Men shop focused

HE SHE

Espresso-Pause

Time:

12 min.

Time:

199 min.

SHOPPING MALL

Preferred

shop

Some facts of B&R purchase decision making

93%- know whether they

will buy B&R before

going to store

90%- know which brand

they will purchase

90%- know which variant

they will purchase

84%- know which pack

size they will purchase

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

*Male H&P 2005

Shopping Behaviour

Russia Male Shoppers tend to be more brand loyal than store loyal as on the average 42% of them are willing to switch shops in order to buy the required brand.

Retailer loss 66%, which is the biggest in B&R and Shave Care versus other categories

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Based on clear Shopper Insights....

Ideal Shelf Principles

Shaving Products “core segment” for daily Men routine and

clearly identify the area:

All 3 steps of shave blocked together (drive cross purchasing)

Ideal Men‟s Care LayoutBased on European Merchandising Study 2002; Virtual shopping simulation tool

Confirmed and Updated with IRI Qualitative European Shopper Study 2005

Post Shave

Pre Shave

Blades

Razors

Disposables

Eau de

Toilette /

Perfumes

Deodorants

Men‟s Care

Wash

Bath

Hair

care

Optimization

50 100 120+ 130+

Pre Post Shave

Systems

Disposables

Check out only

or locked

Re-invention

Horizontal

Blocking

Current

Vertical Blocking

Pre Post

Shave

Total B&R

Sales Index

From defensive merchandising To shopper based design

Modern Trade

Main Shelf in line with Shopper Based Design

B&R specific characteristics

1. These products are prone to theft

2. High levels of SOOS are present:

60% of all OOS are a result of the goods

present in store, but not on the shelves

Leanings from P&G

On-Shelf Availability

experience

Shrinkage Examples

Internal

Theft

Inter-Company

Fraud

Process

Failure

External

Theft

Deliberate Under/Over Delivery

Invoice Errors

Quality and Weight of Items

Inventory Errors Promotion Errors

Pricing Errors Stock Going Out of Date

Damage to Stock Product Delivery/Scanning Errors

Theft of Stock and Cash

„Grazing‟

Collusion

Shoplifting Till Snatches

Returning Stolen Goods Burglary

„Grazing‟

Internal

Theft

Inter-Company

Fraud

Process

Failure

External

Theft

Deliberate Under/Over Delivery

Invoice Errors

Quality and Weight of Items

Inventory Errors Promotion Errors

Pricing Errors Stock Going Out of Date

Damage to Stock Product Delivery/Scanning Errors

Theft of Stock and Cash

„Grazing‟

Collusion

Shoplifting Till Snatches

Returning Stolen Goods Burglary

„Grazing‟

Process

failures

Inter-company

fraud

Internal

theft

External

theft

Shrinkage

Understanding Shrinkage

% % % %

“Solutions”

• Product

• Process

• Information

• Personal

Product

Highly Visible Locations

– High Shopper Traffic

– In line of sight of

vigilant staff

– Public view CCTV in

aisle

– Not in blind spots

Product

– Safer boxes

– Hard stickers

– Soft stickers

Process

Appropriate store order quantities

• Secure Delivery in one case

with one invoice

Extra controls for highest shrink

items

• Careful Picking (by sales

unit)

• Fast tracking to secure area

• Secure storage

Information

Regular counting of highest shrink items

– Put in the hands of the right people

– Fast determination of shrinkage level

– Determine the root causes

– Track progress

Personal

– Pre-employment screening

– Contracts

– Clear awareness of shrink and their duties

– Hot Product Controllers

Project Objective

• Create new Shave Care category

- Open sales

- Systems B&R – eye level

- Brand blocking with Pre- & Postshave

• Targets:

Sales +30%

Meet Shrinkage target!!!

Key actions

• Road map analysis (Retailer & P&G joint investigation)

• Shrinkage prevention actions development

• Create Shave Category & test in 3 store during 2 months

• Re-apply shave category in chain stores based on key

leanings

Shave category creation in Karusel

Before

After

Shave Care category in Karusel. Test

• Growth index:

- Blades & Razors +89%

- Shave Category Total +50%

• Shrinkage:

- Decreased by 2 times (percentage)

• 61 stores with Shave Care category during

Jan-Jun‟10

• To ensure proper execution of shrinkage prevention recommendations on store level

• Regular monitoring of shrinkage and sales dynamics by store with customer

• Production and installation navigation materials for Grooming Center

Next steps