Artistry Repackaging Program update July 17

TM

Repackaging Program 04 26 10

TM

Repackaging Program 04 26 10

Process

01 Discovery

02 Define

03 Design

04 Develop

05 Deploy

01Why repackage?

Why redesign Artistry packaging?

01

Compete more closely against our competitive set –

are established, well-known, brands with physical presence

02

Develop more consistent brand elements between

ARTISTRY’s sublines

03

Draw attention to our new positioning.

04

Boost the prestige perception of the packaging

03Market Learnings | Workshop

In March 2010, a group of us went on

an immersion trip, where we met with

marketing teams in Seoul and Tokyo to

better understand the needs, concerns

and competitive sets of the affiliates in our

leading markets. This comprehensive visit

included competitive shopping, affiliate

presentations and in-home visits.

Here is a synopsis of our learnings.

Seoul

What we learned in Seoul

01 Quality interior elements are as important as exterior

02 Weight signifies a luxury product

03 Innovation is a key driver for growth

04 Design Intent reflecting brans concept is important

05 Sampling samples are portable representations of the brand

Tokyo

What we learned in Tokyo


02 Functionality everything must have purpose and fulfill that purpose

03 Design Intent the reason for everything should be explained

04 Details how something closes is as important as its opening

05 Simplicity reduction is key to the Japanese aesthetic

06 Sustainability must be addressed in this market

07 Sampling is the number one driver for sales

Our Competition

Sulwhasoo

Brand: Based on the science of traditional Asian medicine and stress-balanced skin maintenance.

Packaging: The brand identity is reinforced via the authentic, traditional product design and colour cues:- Amber, inspired by Korean traditional jewelry (amber & jade)- Calligraphy-style logo gives an emotional & authentic Korean image- Consistency among the sub-brands

SU:M 37

Brand: The brand name “su:m 37” captures the science behind naturally fermented cosmetics: the concept of the skin’s respiration (sum in Korean) and the temperature at which fermentation takes place, 37°C.

Packaging: Shapes that echo nature through Oriental simplicity and the beauty of flowing curved lines. Use of colour to differentiate sublines, and special finishes for special products.

SK-II

Brand: Women are at their most beautiful when they are true to their own unique beauty, thus everyone’s skincare ritual is different.

Packaging: Innovative designs for special products. Use of colour to differentiate sublines. Silhouettes not all exactly the same, but similar enough to feel like a family.

Shiseido

Brand: Fusion between Western pharmacology and Eastern philosophy, creating an image of mystery and sophistication.

Packaging: Futuristic and sleek but with feminine shapes. Interesting juxtaposition of different finishes used on lipsticks.

Sulwhasoo



SU:M 37



SK-II



Shiseido



Sulwhasoo



SU:M 37



SK-II



Shiseido



Sulwhasoo



SU:M 37



SK-II



Shiseido



Clé de Peau

Brand: Fusion of the most sophisticated technology and equisitely refined aesthetics.

Packaging: Elegant, sophisticated, significant of icon. Most skin care products use glass and have signature freshness seal.

Suqqu

Brand: For women with experience and confidence, to help nurture and enhance the sophistication that comes with maturity.

Packaging: Design is simple, yet the shapes are unique, easy to hold and use. Finishes are elegant, sophisticated, ranging from slightly textured matte to smooth gloss.

The History of Whoo

Brand: A modern reinterpretation of ancient secret Korean royal court beauty secrets, using the special ingredient Gongjinbidan.

Packaging:- Lotus flower and feminine refined curves remind one of a Queen- Calligraphy style is reminiscent of a Korean fiddle- Gold and amber colouring symbolize the luxury of the royal court- Collaboration with famous artists and designers on some sublines lends excitement

O Hui

Brand: Creating scientific cosmetic solutions to keep women’s skin healthy and beautiful.Brings together nature’s power to heal and the best of skin science.

Packaging: Futuristic, technologically inspired.

Clé de Peau



Suqqu



The History of Whoo



O Hui



Clé de Peau



Suqqu



The History of Whoo



O Hui



Clé de Peau



Suqqu



The History of Whoo



O Hui



AmorePacific

Brand: Draws on traditional concepts of Asian beauty culture and uses indigenous botanical ingredients with cutting-edge technology.

Packaging: Elegant and sensual, designed in multiple layers to protect product from light and extreme temperatures.

Hera

Brand: The joy of renewal through innovative skin care and the artistry of makeup.

Packaging: Sophisticated, scientific package design. Signature use of colour gradations across sublines. For a special subline, gold accents were used to create an element of surprise, and colour was used to indicate functional elements. Refills available.

Three

Brand: Skincare should be ultimately natural, comfortable and powerful. Makeup should be edgy but show your personality. “Natural” skincare and “edgy” makeup. The new standard created by the two contrasting elements.

Packaging: Soft touch, matte natural finish. Earth-toned neutral colour

for cosmetics.

Lancôme

Brand: French heritage, embracing elegance, femininity, inspiration and allure; Continual product innovation and scientific development.

Packaging: Strong use of the rose icon. Very consistent shapes/silhouettes across sublines, differentiated through colour. Innovative packaging is introduced for special products like Génifique and Secret de Vie.

AmorePacific



Hera



Three



for cosmetics.

Lancôme



AmorePacific



Hera



Three



for cosmetics.

Lancôme



AmorePacific



Hera



Three



for cosmetics.

Lancôme



Estée Lauder

Brand: Symbolizes an iconic, accessible luxury, built on product innovation and technological advances.

Packaging: Similar to Lancôme, there are common shapes/silhouettes across sublines with differentiation in colour. Often prominent use of EL icon.

Clinique

Brand: Dermatologist-developed, with products that are heavily tested, the brand meets individual skin care needs in a simple, thorough and effective way.

Packaging: Supports clinical positioning. Minimal, with focus on functionality. Simple silhouettes throughout with slight differentiations in colour.

Our Competition

Estée Lauder

Brand: Symbolizes an iconic, accessible luxury, built on product innovation and technological advances.

Packaging: Similar to Lancôme, there are common shapes/silhouettes across sublines with differentiation in colour. Often prominent use of EL icon.

Clinique

Brand: Dermatologist-developed, with products that are heavily tested, the brand meets individual skin care needs in a simple, thorough and effective way.

Packaging: Supports clinical positioning. Minimal, with focus on functionality. Simple silhouettes throughout with slight differentiations in colour.

Our Competition

Tokyo




03 Design Intent design elements for function or story support

04 Details how something closes is as important as how it opens




Men’s competitive

Shiseido Men

Brand: Power your skin. Powerful science. Practical skincare.

Packaging: Strong, clean forms. On transparent bottles, the product explanation is often put on a seal which is placed at bottom of package, to keep simplicity and cleanliness of front facade.

Tokyo




03 Design Intent design elements for function or story support

04 Details how something closes is as important as how it opens




Men’s competitive

Shiseido Men

Brand: Power your skin. Powerful science. Practical skincare.

Packaging: Strong, clean forms. On transparent bottles, the product explanation is often put on a seal which is placed at bottom of package, to keep simplicity and cleanliness of front facade.

Hera Homme

Brand: Innovative skin care line extension of Hera for women.

Packaging: More rectangular bottles but with rounded edges, in blues, greys and silver, both differentiates Hera Homme from the women’s line and connects it.

Comfort Zone Man Space

Brand: Synergy of emotional experiences and sensory sublimity; Advanced formulation research, refinement of Italian taste in its choice of an appropriate image and Oriental knowledge in its gentle and natural approach. Man Space is a unique grooming system within Comfort Zone, conceived to match the highest expectations of contemporary men.

Packaging: Reflects the brand’s commitment to and respect for the environment and a strategy of sustainable development

Seoul


01 Finish and Detail interior elements are as important as exterior



04 Design Intent reflecting a brand’s concept is important


Hera Homme

Brand: Innovative skin care line extension of Hera for women.

Packaging: More rectangular bottles but with rounded edges, in blues, greys and silver, both differentiates Hera Homme from the women’s line and connects it.

Comfort Zone Man Space

Brand: Synergy of emotional experiences and sensory sublimity; Advanced formulation research, refinement of Italian taste in its choice of an appropriate image and Oriental knowledge in its gentle and natural approach. Man Space is a unique grooming system within Comfort Zone, conceived to match the highest expectations of contemporary men.

Packaging: Reflects the brand’s commitment to and respect for the environment and a strategy of sustainable development

Seoul


01 Finish and Detail interior elements are as important as exterior



04 Design Intent reflecting a brand’s concept is important




an immersion trip, where we met with the








04Criteria for repackaging

Our Criteria

01 Design Intent

02 Quality

03 Innovation

04 Functionality

05 Sustainability

06 Sampling



an immersion trip, where we met with the








04Criteria for repackaging

Our Criteria

01 Design Intent

02 Quality

03 Innovation

04 Functionality

05 Sustainability

06 Sampling

01 Design Intent

Telling a story that supports the packaging is considered a

key sales driver. It gives the IBOs an entryway in discussing

these products and creates a point of engagement with

potential customers.

We will create packaging rich in storytelling, in both concept

and execution and make that story available to our affiliates.

02 Quality

Quality perception must be raised if we are to continue

to ask consumers to pay premium prices for our products.

Currently, competitive products’ use of weight, materials,

finish and detail make our products look “cheap” in

comparison.

We will increase our quality cues to address

things such as weight, feel, openings, closures

and fit to make our packaging as superior

as our product.

02Our Process

Our Process

01 Discovery 03.10 - 04.10

02 Design 05.10 - 07.10

03 Validate/Finalize 07.10 - 09.10

- Design Freeze 10.08.10

01 Design Intent

Telling a story that supports the packaging is considered a

key sales driver. It gives the IBOs an entryway in discussing

these products and creates a point of engagement with

potential customers.

We will create packaging rich in storytelling, in both concept

and execution and make that story available to our affiliates.

02 Quality

Quality perception must be raised if we are to continue

to ask consumers to pay premium prices for our products.

Currently, competitive products’ use of weight, materials,

finish and detail make our products look “cheap” in

comparison.

We will increase our quality cues to address

things such as weight, feel, openings, closures

and fit to make our packaging as superior

as our product.

02Our Process

Our Process

01 Discovery 03.10 - 04.10

02 Design 05.10 - 07.10

03 Validate/Finalize 07.10 - 09.10

- Design Freeze 10.08.10

01Why repackage?


01

Be competitive with other prestige beauty brands which are

established, well-known and have physical presence

02

Incorporate more consistent branding elements across the

ARTISTRY sublines

03

Establish a design that is timeless and enduring

04


03 Innovation

Innovative products and methods of delivery will be

key sales drivers, as they allow our IBOs to increase sales

by opening doors with new product stories. Our current lack

of interesting delivery mechanisms leaves us in the shadow

of our competitors, as they invest heavily in this area.

We will integrate innovative delivery mechanisms, materials

and finishes into our product line, all of which will also reflect

our devotion to innovation in our product formulas.

04 Functionality

Taking a very close look at how our products are used and

the context in which they are used needs to be addressed.

Making certain that caps stay on when they are meant to

and that powders do not fall out when turned upside down

is key to customer loyalty.

We will make certain that the packaging which delivers

our products is true to its function as the formulations are

to theirs.

01Why repackage?


01

Be competitive with other prestige beauty brands which are

established, well-known and have physical presence

02

Incorporate more consistent branding elements across the

ARTISTRY sublines

03

Establish a design that is timeless and enduring

04


03 Innovation

Innovative products and methods of delivery will be

key sales drivers, as they allow our IBOs to increase sales

by opening doors with new product stories. Our current lack

of interesting delivery mechanisms leaves us in the shadow

of our competitors, as they invest heavily in this area.

We will integrate innovative delivery mechanisms, materials

and finishes into our product line, all of which will also reflect

our devotion to innovation in our product formulas.

04 Functionality

Taking a very close look at how our products are used and

the context in which they are used needs to be addressed.

Making certain that caps stay on when they are meant to

and that powders do not fall out when turned upside down

is key to customer loyalty.

We will make certain that the packaging which delivers

our products is true to its function as the formulations are

to theirs.

05 Sustainability

Across all industry sectors, sustainability is becoming a

benchmark of quality. In addition, it is integral to Amway as

a brand. Waste is no longer a side effect of luxury, it is seen

as vulgar and has negative implications on brands which

engage in it.

We will strive to find ways to reduce the

impact of our packaging, and these

changes will add to the narrative

and credibility of our repackaging story.

06 Sampling

Sampling is the number one driver in new sales.

It is also the first representation of the brand that potential

custmers see, and lingers with them while they are making

up their minds about purchasing the product. It is often the

most visible representations of our brand outside the home

as samples are often carried in a handbag.

We will create samples of our products much more closely

related to our primary packaging thus increasing our

prestige and quality perception.

Meeting Objectives

01

Understand necessity of repackaging

02

Understand our process

03

Share learnings from our markets

04

Align on criteria to judge success of packaging redesign

Our objectives

for this meeting

05 Sustainability

Across all industry sectors, sustainability is becoming a

benchmark of quality. In addition, it is integral to Amway as

a brand. Waste is no longer a side effect of luxury, it is seen

as vulgar and has negative implications on brands which

engage in it.

We will strive to find ways to reduce the

impact of our packaging, and these

changes will add to the narrative

and credibility of our repackaging story.

06 Sampling

Sampling is the number one driver in new sales.

It is also the first representation of the brand that potential

custmers see, and lingers with them while they are making

up their minds about purchasing the product. It is often the

most visible representations of our brand outside the home

as samples are often carried in a handbag.

We will create samples of our products much more closely

related to our primary packaging thus increasing our

prestige and quality perception.

Meeting Objectives

01

Understand necessity of repackaging

02

Understand our process

03

Share learnings from our markets

04

Align on criteria to judge success of packaging redesign

Our objectives

for this meeting

our objectivesSub-brand Concepts

There is a common element across all Artistry Brand Spark

territories – Nature. There is perhaps no richer source of

influence we can draw from to inspire out packaging line

and to create a coherent story. Although the messages will

be delivered in slightly different ways depending on final

positioning, the inspiration remains a valid and appealing

guide to the development process.

Sub-Brand Concepts

01 Essentials Pleasura

Inspiration River Stone

The basis and foundation of everything

which is stable. Stone is not only a provider

of shelter but a medium of sculpture.

When combined with the

force of water, a smooth

perfection is created.

Form

Simple with smooth details

Finish

A matte and modeled texture will

accompany this concept.

01 Essentials Pleasua

Matte opaque finish. Lightly textured. Soft touch or other option.

Satin Metallic “Linking Element”

02 Pure White Whiticia

Inspiration Droplet

Water takes its purest form from which we

take our inspiration.

Form

A pure and rounded geometry

Finish

The finish should be perfectly smooth and

brilliantly white.


High gloss opaque finish. A white/metallic look. Matte white “Linking Element”

03 Intensives

Inspiration Vortex

Nature’s most powerful method of creating

an intense focus.

Form

Graduating between the broad

and narrow.

Finish

Levels of opacity combining the

clear and opaque.

03 Intensive

Satin opaque to clear graduation. Metallic blue, to silver to clear.

Blue Metallic “Linking Element”

04 Time Defiance Treatage

Inspiration Shell

Nature’s ultimate solution which through

the act of protecting something delicate,

produces one of its most beautiful objects.

Form

Over casing of a form beneath.

Finish

Color variations through a play of light.


Gloss mauve/gold with overlay of semi-transparent iridescence.

Bodies are very slightly transparent.

06 Luxury Creme L/X

Inspiration Crystalline

The most rare and precious form of nature.

Form

A pure and delineated geometry.

Finish

Deep reflected optical properties,

both opaque and clear.

05 Luxury Creme L/X

Very heavy walled transparent with opaque insert (refillable).

Exaggerated form from main line. Integrated applicator.

05 Colour

Inspiration Motif

Nature creates a diverse array of

expressive display.

Form

Simple beauty

Finish

A play between matte and gloss.

06 Colour

High gloss warm black outer casing with

matte white linking element.

07 Men

Inspiration Structure

Nature’s cunning is revealed in its ability to

create intensively strong structures through

repetition of interlocking forms.

Form

Forms which fit together.

Finish

Matte and lightly textured.

06 Men’s

Matte warm gray textured finish.

01 02 03 04 0605

Direction 2 Overview

01 02 03 04 0605

Direction 1 Overview

Next Steps

NEXT STEPS

Complete Design Iteration

Initial Cost implication development based on design recommendation

Present to Stakeholders

ARTISTRY Repositioning Alignment & Stakeholder input refinements

Quantitative Research

Final Design Modifications

Leadership Approval

Design Freeze October 1, 2010

Develop

Deploy Q1 2012

Current Packaging

SPEC

IAL

CAR

EIN

TEN

SIVE

SK

IN C

ARE

CREM

E

L/X

Anti-

Agin

gIn

tens

ives

Luxu

ry

CLEANSER

TIM

E D

EFIA

NCE

TREA

TAG

E

Cleansing Foam Cleansing Creme

Cleansing Treatment

WH

ITIC

IAPU

RE

W

HIT

E

Whi

teni

ng

Cleanser

ESSE

NTI

ALS

ESSE

NTI

ALS

KOR

EA/P

LEAS

UA

SPEC

IAL

CAR

E

Bas

ic

Balancing Cleanser

Cream Cleanser

Hydrating Cleanser

Foaming Cleanser

Polishing Scrub

Cleansing Oil

2011 ARTISTRY GLOBAL SKINCARE MAP

Creme L/X

MOISTURIZERTONER

CreamMilky Lotion Light Milky Lotion Rich

Day Protect Lotion

Day Protect Creme

Night Recovery Lotion

Night Recovery Creme

Lifting Eye Creme

Skin Lotion

Conditioning Toner

Whitening Cream

Moisturiser I Moisturiser II Creme

Eye Attract

Replenishing Eye Creme

Replenishing Eye Creme

Balancing Lotion

Balancing Milky Lotion

Hydrating Lotion

Moisture Milky Lotion

Multi-Protect SPF 30

Calming Cream

Soothing Creme

Whitening Conditioner

Toner I Toner II

Balancing Toner

Moisture Skin Lotion

Hydrating Toner

Balancing Skin Lotion

Eye Creme

TREATMENT

Line Solution

Retinol Treatment

Swiss Serum EX

Renewing Treatment

Dramage 14

Repair Serum

Essence

Skin Refinishing Lotion

3D Lifting Serum

Derma Erase

Illuminating Essence

Intensive Repair Daily

Intensive Repair Serum

Vitamin C & Wild Yam

Whitening Day Essence Whitening Night Essence Spot Corrector

Spot CorrectorEssence

Creamy Massage Gentle Moisture EssenceAdvanced Self Acting

Anti-Blemish Alpha Hydroxy Serum Plus

Creamy Massage

Moisture Plus

Alpha Hydroxy Serum Plus

MASK

Pure White Masque China Sheet Masque

Moisture Mask EX Clay Mask EX

Pore Cleansing Masque

Treatment Mask

Moisture Intense Masque

Pore Cleansing Mask

Polishing Scrub

Moisture Intense Mask

MAKEUP REMOVER

Makeup Remover Gel

Makeup Remover

Point Off

Eye & Lip Makeup Remover

Eye & Lip Makeup Remover

BODY & LIMITED LIFE

Gentle Body Smoother

Limited Life

Limited Life

Limited Life

Essential Hand Treatment

By: Consumer Type and Category

Alternative Direction

Direction 1 Form Diagram

01 Essentials Pleasua

Matte opaque finish. Lightly textured. Soft touch or other option.

Satin Metallic “Linking Element”


High gloss opaque finish. A white/metallic look. Matte white “Linking Element”

03 Intensive

Satin opaque to clear graduation. Metallic blue, to silver to clear.

Blue Metallic “Linking Element”


Gloss mauve/gold with overlay of semi-transparent iridescence.

Bodies are very slightly transparent.

05 Luxury Creme L/X

Very heavy walled transparent with opaque insert (refillable).

Exaggerated form from main line. Integrated applicator.

06 Colour

High gloss warm black outer casing with

matte white linking element.

Project Background

Process

01 Discovery

02 Define

03 Design

04 Develop

05 Deploy

01 Discovery (March)

1. Establish a core cross-functional team (packaging engineering, brand management, packaging design, procurement)

2. Immersion: In March, the core team went to Japan and Korea and met with the marketing teams to better

understand the needs, concerns and competitive landscape in two of our top markets (China opted out of

participating in the Immersion — acquiescing to Japan and Korea’s lead)

3. Key Learnings: Our Immersion with the Affiliates and subsequent team discussions led us to arrive at 6 driving

factors in prestige packaging, which we’ve set as the criteria against which we will judge the success of our

new packaging:

Design Intent: Packaging that reflects an inspirational concept, a story to share with distributors and consumers

Quality: Increase quality cues by addressing weight and details like finish, openings, closures

Innovation: Integrate innovative delivery mechanisms, materials and finishes into our product line

Functionality: Ensure functionality throughout usage — caps stay on, powder does not leek out

Sustainability: A benchmark of quality and integral to the Amway brand. Reduce the impact of our packaging

Sampling: Key driver in new sales. Increase quality of samples and alight more closely with full size primary

packaging

1. Gain Alignment on Prestige Criteria: Presented our findings and criteria to the Affiliates at the April 2010

Global Marketing Summit for alignment

2. Introduced Colour Cosmetics and Prestige Men’s Skin Care to the project scope.

3. Accelerated both Colour and Men’s categories to current status of the original skin care sublines

4. Operational Readiness:

a. Identification of current and future consumer usage and habits and unmet needs for Prestige /

Luxury packaging

b. Identify new and existing vendors currently supplying luxury brands

c. Prepare strategic sourcing partners for change and quotation process

d. Identify potential new vendors for accelerated / rapid qualification & approval procedures

e. Developing financial modeling tools to offer Stakeholders insight on how the recommended designs will

impact selling price & margins

5. Established guide posts for navigational cues that will visually assist users to identify sublines

6. Identify distinctive inspirational concepts for the skin care sublines and colour cosmetics

02 Define (April/May)

Packaging Structure

Packaging Structure

There are many approaches available to us in creating

a cohesive brand while allowing for stratification and

differentiation between our sub-brands, from Essentials

to Creme L/X.

The following is a diagramatic demonstration of the options

available to us, with a strong recommendation of the third.

Note: The forms are not “designs” but are meant to

represent forms different and common to each other.

01 Story

Loren ipsum dolor set amed histrum pax id tarum for se

parmuis dixon cannis factotoum in toto Loren ipsum dolor

set amed histrum pax id tarum for se parmuis dixon cannis

factotoum in toto Loren ipsum dolor set amed histrum pax

id tarum for se parmuis dixon cannis factotoum in toto Loren

ipsum dolor set amed histrum pax id tarum for se parmuis

dixon cannis factotoum in toto

A Same form with different finishes

Sub-Brand A Sub-Brand B Sub-Brand C Sub-Brand D Sub-Brand E

Discovery (March)







Luxury packaging








B different forms with same finishes


recommended direction

Discovery (March)







Luxury packaging








C different forms with different finishes, but with consistent element


1. Start design development. Once grounded with agreed on subline structure system and subline inspirations,

proceed with development of shapes, colours, unique brand identification feature(s), graphic and finish direction.

2. Design iteration process with all disciplines to refine and develop actionable designs

3. Present to corporate and affiliate stakeholders for input and direction on final design refinements

CURRENT PRODUCT NEW DESIGN

Current Distributor Cost Proposed new Distributor Cost

Suggested Retail [if applicable] Proposed new Suggested Retail

CMAM % Proposed new CMAM %

CMAM $ Proposed new CMAM $

03 Design (June/September)

Target Launch Q1 2012

Whitening in Asia

Anti-Aging in Western Markets

05 Deploy

Process

01 Discovery

02 Define

03 Design

04 Develop

05 Deploy

Process

01 Discovery

02 Define

03 Design

04 Develop

05 Deploy

Target Launch Q1 2012

Whitening in Asia

Anti-Aging in Western Markets

05 Deploy

Documents

Artistry Repackaging Program update July 17