Sun Care RangeVichy – Capital Soleil

Kairav Parikh •65

Swathi Velisetty •107

Atul Zade •114

Akshay Shiveshwarkar •93

Kiran Naik •58

Ritesh Raushan •79

Shilpa Surve •100

Prashant Prakash •72

Prem Sequeria •86

Flow of Presentation

Sun Screens

Need Gap Analysis

Industry

Competition

STP Analysis

5Ps

SWOT

Budget

Sun Care

Sun Care

Far more than a conventional beauty product industry

Sunscreens the world over

•not tested for photocarcinogenic agents

Europe & Australia

•tested for photocarcinogenic agentsUSA

Vichy’s Capital Soleil falls in the latter

category meaning good news for its users

Sunscreen v/s Suntan

•Aims at providing the user with artificial tanning

Suntan

•Aims at providing user with protection from UVA and UVB

Sunscreen

UV Protection

UVB protection

wavelength 280-320 nm

sunburn causing

UVA protection

wavelength 320-400 nm

penetrates skin more deeply causing long term

effects like skin aging

Types of Sunscreens

Opaque materials like titanium dioxide, zinc oxide which reflect light

Opaque materials – physical block

Adverse Effects of Sunscreen

Cancer

Decrease in warning signals

of sunburn

Penetrates into the skin

Allergic reactions

Inhibited production of

Vitamin D

Sunscreen over the ages1938 was when the 1st sunscreen was created by Franz Greiter

SPF concept is credited to him in 1962

SPF indicates time person can be exposed to sunlight before sunburn

SPF is measured applying 2mg/cm2

of sunscreen

Sunscreen Efficacy

Skin type

Amount applied

Frequency of reapplication

Activities one engages in

Amount of sunscreen

absorbed by skin

Goals of Capital Soleil

Educating consumers about

sun-related health risks

Protecting all skin types with the best

sun protection products

Need Gap Analysis

Sun Care

Skin Damage

Tanning

Wrinkles

Skin Cancer

Premature Aging effect

Brown Spots

India

Tropical Nation

Population well spread

Sun Protection throughout

the year

Incomplete Care

Expenditure on cosmetics

rising

Skin Care gaining

importance

Current Product

Range not effective

Special Needs

Different skin types

Sensitive skin

Sweat Resistant

Kid’s Range

A family product

Emphasis on Men’s Needs

Industry

Global

In 2010 - $4.9 billion,•increase of 27.7% since 2005

In 2010 - 515.7 million units•increase of 16.7% since 2005

sun protection products• 66.3% of the global market's value.

L'Oreal has a 12.6% share of

the global market's value.

Supermarkets and hypermarkets

distribute 37.8%of the market's value

India

Skin care industry

•$ 200 Million

Sun care industry

•$ 30 Million•20% growth

Prescription sunscreen market

•$ 3 Million •14.30% growth

Suncare Market in India

India v/s Asia 

India’s per capita cosmetic & toiletries consumption

• 50 times less than Hong Kong• 18 times less than Japan• 15 times less than Taiwan• 12 times less than Philippines & Malaysia• Half of China

Growth in India

India’s cosmetic & toiletries industry expected to grow from USD 950 mil to USD 1400 mil in 2-3 years

Industry growth has been 15-20% in last few years

Column1

Low CostBranded

Characteristicsfew major players

high entry barriers

fairly high rate of new product launches

Cost of importing products high

Competition

• Pharmacy• Retail• Direct• Salon

• SPF 15• SPF 30• SPF 50

• Different chemical compositions

• Cream• Spray• Gel• Wipes

By Channel By Protection

By ContentsBy Base

Lakme HUL Garnier

Himalaya Lotus

Clinique Ayur Shahnaz

Ranbaxy

Stiefel

Dr. Reddy

Glenmark

Microlabs

S.T.P. Analysis

Segmentation

Demographic

Income

Age

Gender

Skin type

Segmentation

Geographic

Urban v/s Rural

Regional

Segmentation

Psychographic

Skin Care Conscious

‘Looks’ Conscious

Segmentation

Behavioural

Occasions

Texture preference

Brand loyalty

Targeting

Targeting the urban affluent family

A product range to suit

different

Positioning

Health is vital. Start with your Skin

Positioning

A product for everyone,

because everyone is unique

Adventure Sports

Amusement Parks

Beach

Cricket

Dermatologist

Kids

Malls

Tourism

TV/ Movies /Shows

Market Survey

Market Survey

60 60%

Respondents

MaleFemale

Usage

Men

NiveaFair & LovelyFair & Handsome

Usage

Shahnaz; 10

Fair & Lovely; 22

Lakme; 30

Garnier; 23

Nivea; 12 Ayur; 3

Woman

ShahnazFair & LovelyLakmeGarnierNiveaAyur

Why do you use sun care?

Sun Protec-tion; 80

Tan-ning; 14

Others; 6

Sun ProtectionTanningOthers

Who else in your family use ?

Kids; 3

Parents; 33

Spouse; 50

Sib-lings; 14

KidsParentsSpouseSiblings

Do you know your SPF requirement?

Yes; 55

No; 45

Response

YesNo

Does your Lipstick / Lip Balm have SPF?

Yes; 6

No; 29

Dont Know; 65

Response

YesNoDont Know

How much would you pay ?

<100

100-200

200-300>300

<100100-200200-300>300

Consumer

TYPES

Female

Affluent

Young

FREQUENCY

Daily

Occasional

EXPERIENCE

Non greasy

More protection

Sweat/ Water resistant

No skin reactions

Money’s worth

Non- Carcinogenic

CURRENT SATISFACTION

Expensive

No need

Oily

Not for sensitive skin

Not for kids

No fragrance

Market Survey

Small size preferred

Sale in retail segment

more

Medicated products sale low

Urban and affluent area

sales are more

Lower SPF sales more

Combo pack sales high

Penetration low in males

Sunscreens in demand

Spray market new

Product

Product

Sun

Care Market

Sun Protection

Self Tan

After Sun

Product Line Sun Protection

Unisex Product

• Care for areas subject to excess sun exposure

• Prevention from sunburns and brown spots

• Brown Spot Prevention Complex• Photo-stable• Preservative free• Tested under dermatological control

Product Line Sun Protection

Children’s Line

• Capital Soleil Enfants• Protection against multiple

risks of sun exposure• High Resistance• Tested under pediatric control• Gentle and fruity scent

Product Line After Sun

After Sun Products

• Soothing Milk, Calming Reparative Gel, Nourishing Soothing Spray

• Soothes and re hydrates skin• Promotes repair of sun caused

damage

Product Line Self Tan

Tanning Products

• Self Tan Gel Cream• Self Tan Body Milk• Express Self Tan Spray• Alternative tanning experience

to UV exposure• No damage to the skin

Emotional Features

Protected and Safe

Special products formulated for children

Relaxed

Confident to walk in the Sun

Feel Good factor for using a branded product

Gives an even complexion

Makes you look young

Gives a young and radiant look

Quality Assurance

EUROPEAN STANDARDS 2006 Qualified

• High Coverage Technology through• Mexoryl XL Sun Filtering System + UVA UVB ULTRA filtration

Exclusive association with Mexoryl XL

Protection Factors:

Attributes

Special Focus on most vulnerable areas

• Face• Neck• Shoulders • Hands

Special Children’s Care Products

Not women-centric - aimed at the entire family

Special Offerings

Skin Type Diagnosis:

• Specific Variant • Usage according to Skin Type

VICHY Clinics:

• Consulting • Education about Skin Care

Packaging

PACKAGING

Simple sophisticated

package

Complete information

and educational

Easy to use and store

TYPES OF PACKAGING

Creams

Gels

Sprays

Ointments

Lotions

Wax Sticks

Roll on

Wipes

CREAMS AND LOTIONS

GELS

SPRAYS

OINTMENTS

WAX STICKS AND ROLL ON

WIPES

Pricing

PRICING

Should be targeting middle class population

Competitive with respect to premium brands

PRICING OBJECTIVE

Maximize current profit

Reference pricing

Fair price

Competitor price

Usual discounted price

Quality as in indicator

Scarcity to signify price (not in this case)

Pricing

Perceived value pricing

Promotional pricing

Psychological pricing

LAKMELakme Sun Expert Sunscreen Lotion•For All Skin types •120ml, Rs. 140 and 60ml, Rs. 75

Lakme Sun Expert Sun Block•For Sensitive Skin •50g, Rs. 99

Lakme Sun Expert Sunscreen Soufflé•For Oily Skin •48g, Rs. 90

Lakme Skin Brightening Gel•After sun use•48g, Rs. 99

LOTUS

Cool Melon Sun Screen Lotion• SPF1

0 • 120 ml

$11.95

Breezy Berry Sun Block Cream• SPF

20• 120 ml

$14.95

Indian Summer Sun Block Cream• SPF3

0• 120ml

$14.95

Daily Sun Block• SPF

40• 120ml

$17.95

Intensive Sun Block Spray • SPF

50• 80ml

$14.95

Daily Sun Block• SPF

60• 60 ml

$17.95

AYUR

Sunscreen lotion• SPF -15 • (50ml,100

ml, 200ml)

Sunscreen lotion• SPF -30• (50ml,100

ml, 200ml)

Water resistant sunscreen• SPF 20• (20ml,

50ml, 100ml)

Invisible sun screen for men • SPF 30• (50ml,

100ml)

After sun burn gel • Multivitami

n complex• (50ml,

100ml)

CLINIQUE

Daily face protect• SPF

15• SPF

40

Uv-response for body• SPF

30• SPF

50

Uv-response for face• SPF

30• SPF

50

Sun care body gel• SPF

15

Lip/ eye sun block• SPF

30

Body sun block• SPF

25

After sun

rescue balm

Body spray• SPF

15• SPF

30

OTHERS

Fair & Lovely – Active Sun Block Lotion•SPF 25•TPI 70

Himalaya-Protective Sunscreen Lotion•SPF 15•100ml, 3.85 pounds

Prices

SPF Content Volume Price

Creams and Lotions 15 40 ml 99

60 ml 149

20 40 ml 149

120 ml 199

30 40 ml 199

60 ml 299

40 40 ml 199

60 ml 349

80 ml 399

60 40 ml 599

Prices

SPF Volume Price

Gels 30 30 ml 399

Sprays 30 120 ml 449

Ointments 30 120 ml 349

Wax Stick 30 NA 199

Roll On 30 NA 249

Wipes 50 10 nos 399

Place

Strategic plan

YEAR 1

PHASE 1

Products in salons and malls

YEAR 2

PHASE 2

Products in pharmacy and retails

Launch time frame

OF MALLS AND MARKETS

92

TEA

M P

UR

E

Distribution(Malls)

Manufacturing unit

Wholesalers

Malls

Customers

WHERE BEAUTY MEETS FASHION

94

TEA

M P

UR

E

Distribution(Salons)

Manufacturing Unit

Wholesaler

Direct sales team

Salons

Customers

YOUR FRIENDLY NEIGHBOURHOOD CHEMIST &

RETAILERS

96

TEA

M P

UR

E

Distribution Network (Pharmacy & Retailers)

MANUFACTURING UNIT

WHOLESELLER

RETAILER

CUSTOMER

INTERNET BOOM

98

TEA

M P

UR

E

E-Retail Integration

Home delivery retailers to be roped in

Location wise retailer contact information to be displayed on company’s web site

For the Company: Increased Customer access to the product

For the Retailer: Increased Visibility & Customer access

Promotion

Media options for advertisement

Television

Newspapers

Magazines

Out of Home

Internet

Experimental

Television channels

AXN

HBO

Star Plus

Star Movies

Star World

Zoom

MTV

Channel V

NDTV Goodtimes

Television advertising rates

MTV: Rs 2250 (Primetime 30 sec)

Channel V: Rs 2100

AXN: Rs 3600

HBO: Rs 9000

HBO blockbusters: Rs 15,000

Zoom: Rs 15,000

Television day part

Early morning – 6 to 9 am

Day time – 9.00 to 3.30 pm – Working woman

Early fringe – 3.30 to 5.30 pm – Elite housewife, teenager

Early news – 5.30 to 7 pm

Television day part

Prime access

• 7 to 8 pm• working, elite housewife, and teenager

Late news

• 11 to 11.30 pm• Working woman, elite housewife, and teenager

Late fringe

• 11.30 to 1 am• Both working, elite housewife, and teenager

Late night

• 1.00 to 6 am• teenager

Tie-ups with popular TV shows

Beach diaries with VJ Pia

Webcam Goddess

Goddess workouts

MTV Roadies

MTV Style check

Maximum style diva

Just Pooja

Newspapers: Broadsheets and Tabloids

Times of India

Indian Express

Asian Age

Mid-day

Mumbai Mirror

Rate: Rs.1200 to 1700 per square cm

Magazines

Femina

Women’s Era

StarDust

CineBlitz

Cosmoplitan

Verve

Rs 550 to 750 per sq cm

Internet

Weblogs

Podcasts

Banners

Websites

Pop-ups

Messengers

Website

Vichy centre locater

Live chat with skin experts

Ready reckoner

Skin profiler

Sun FAQs

Out of home

•Largest OOH vehicle (14’ x 48’ and larger)

Bulletin

•Largest poster form (12’ x 25’) and most widely available size

30-Sheet Posters

•Smaller than 30-sheets, located mainly on secondary arterials and in urban neighborhoods

8-Sheet Poster

Promotion in malls

Skin diagnosis booths

Skin analysis

Detailed report

Suggestions for Vichy products

Promotional material

Quizzes

Free samples as gifts

Experimental promotions

Vichy mobile vans (consumer education)

Kiosks at airports and gyms

Vichy kiosks inside spas and health clubs

Perfect sun cover…for perfect skin

Remain sun protected

where ever you go!

Use Capital Soliel

Stop the sun…not the fun

Capital Soleil for kids

Capital Soleil for the entire body

Protection for every part of you that faces the sun

SWOT

Strengths

L’Oreal Brand:

• World’s largest beauty product company• Gives personalized advice and premium service• Strong R&D facility• Cosmetological and dermatological

Universality- for all skin types

Water Resistant and oil free

Seen as dermocosmetic rather than cosmetic

Strengths

PABA free

• Para-amino benzoic acid found in vitamin B complex that absorbs UV rays of the sun

Anti aging and overall skin care

Resistant to repeated bathing and sand

Range of products available in lotions and sprays

Strengths

First to incorporate concept of “Mexoryl XL which is photostable UVA absorbers

• These don’t degrade in sunlight• Photo stability specially important for a product developed as sunscreen moisturizer• Mexoryl maintains its sun filtering capacity even after 24 hours

Adheres to strict pharmaceutical and industrial standards

There is something for all

Weaknesses

Established players like Garnier & Lakme

Resistance to cosmetic product usage for men and children

Lack of knowledge especially regarding after sun products

Underrepresented in some growth markets

Lack of advertising, collaboration and use of brand ambassadors like other brands

Weaknesses

Stagnant top line growth i.e. sales

• Competition• Overdependence on some markets

Indian Pharmacies not seen as retail shopping points have little display space

• Vichy being distributed through 30 pharmacies in India

Absence of national pharmacy chain or big brand which matches Vichy’s premium positioning

Opportunities

India:

• Tropical climate• Large population

Penetration:

• Semi-urban and rural• Males and kids market

Economy and cultural polishing:

• Booming economy, increasing income• The concept of Metro sexual Man who wants to look good

Threats

Competitors:

• Currently in stores like Nivea, Lakme• Own stores: Body shop, Shehnaaz Hussain• Competition from private labels on rise as they can better cater to local demands

Fear of allergy and reactions especially Melanoma

Grey market cosmetics from Dubai and Singapore

Mature and concentrated market

Increasing packaging costs

Marketing Budget

Modes of Advertising

Magazines – Tourism and

Woman oriented

Newspapers- Newspapers

read by SEC A urban

Television- Prime time and Afternoon slot

Radio- Health and Women talk shows

Outdoor Promotion like hoardings and

posters

Sales PromotionsFree Samples

Promotional expenses like quizzes and contests in malls, coupons, etc

Advertising planningTherefore advertising and sales promotion should be at its peak in the months of March to May and then September and October.

The monsoon and winter months will also see sales but at a lower level so advertising will still be required.

Market share

Product mainly targeted at urban women of SEC A

and B in India

In addition men and children

form part of the target group

Size of the market may be Rs 55-60 crores

Assuming 20% share we have sales of around

Rs 11 crores

Budgeted Advertising Costs

Mode Apr-Jun Jul-Sep Oct-Dec Jan-Mar TOTAL

Television

7200000 3200000 3700000 3400000 17500000

Radio 2450000 550000 800000 800000 5000000

Magazine

5600000 1000000 1800000 1600000 10000000

Print 2450000 550000 800000 800000 5000000

Outdoors 4500000 700000 800000 1500000 7500000

TOTAL 22200000

6000000 7900000 8100000 45000000

Sales Promotion Expenses Budget

Mode Apr-Jun Jul-Sep Oct-Dec Jan-Mar TOTAL

Commission

2845000 2040000 2000000 1615000 8500000

Free Samples

2650000 750000 600000 1000000 5000000

Promotion Expense

1325000 375000 300000 500000 2500000

TOTAL 6820000 3165000 2900000 3115000 16000000

Projected Profit and Loss Account

Item Apr-Jun Jul-Sep Oct-Dec Jan-Mar TOTAL

Sales 38030000 27240000 26680000 21550000 113500000

Production Cost

12562500 9000000 8812500 7125000 37500000

Advertising

22200000 6000000 7900000 8100000 44200000

Selling and Distribution

6820000 3165000 2900000 3115000 16000000

Profit (3552500)

9075000 7067500 3210000 15800000

Thank You