Korea FY08 ABP Mktg Plan_07 06 19(Final)

8/4/2019 Korea FY08 ABP Mktg Plan_07 06 19(Final)

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Schick Korea FY08 ABPKey Strategy / Action Plan

Schick Korea FY08 ABPKey Strategy / Action Plan

June 2007

SWS KoreaMarketing manager K J Choi



-2-

FY08 ABP(Annual Biz. Plan) Presentation

· Market Trends

· Financial Overview

· Overhead & Headcount

· 2008 Key Issues / Action Plans

Agenda



-3-

FY05 Act. FY06 Act. FY07 Prob. FY08 ABP

GDP growth 3.8% 4.6% 4.5% 4.8%

GDP per capita (US$'00 14.5 14.7 15.0 15.5

Inflation rate (CPI) 3.2% 2.2% 2.6% 2.8%

Unemployment rate 4.0% 4.0% 3.8% 3.5%

Population (million) 48.2 48.3 48.4 48.5

Exchange rate 1,043 984 936 928

* Source of GDP & CPI : TS Wong(fined with Asia office)

Macroeconomic Overview



-4-

Segment Market Share (R&B value share)

Men'sSystem 48,619 48,664 33,610 51,271 51,783

Quattro Base/ Midnight 7.6% 9.8% 8.3% 7.5% 6.0%

Quattro Energy 0.0% 0.9% 1.3% 1.2% 0.7%

Quattro Titanium 0.0% 0.0% 5.9% 9.0% 13.5%

Consort 0.0% 0.0% 0.0% 0.0% 0.0%

Protector (male) 10.2% 8.0% 6.5% 6.3% 5.9%

Xtreme III system 4.2% 3.6% 2.7% 2.5% 2.5%

FX/ Tracer 4.9% 3.6% 1.7% 1.0% 1.0%

Other Male razor 2.8% 2.0% 1.5% 1.0% 0.6%

Total Schick Men'sSystem 29.7% 27.9% 27.9% 28.5% 30.2%

Mach 3 Base/ Turbo/ Cool Blue 44.4% 42.8% 41.4% 37.0% 36.0%Mach 3 Power 4.6% 10.9% 13.3% 13.8% 11.1%

Fusion 0.0% 0.0% 2.3% 9.0% 13.5%Sensor Excel 3.8% 3.3% 2.6% 1.8% 2.0%Other Male Razor 7.7% 6.2% 5.3% 3.5% 1.0%

Total Gillette Men'sSystem 60.5% 63.2% 64.9% 65.1% 63.6%

Women'sSystem 1,781 1,812 778 1,638 1,450

Quattro for Women 0.0% 0.0%Intuition 8.3% 11.4% 3.0% 2.2% 1.0%

Intuition NG 0.0% 0.0% 0.0% 0.0% 0.0%

Lady P / Silk Effects 4.9% 1.1% 0.9% 0.0% 0.0%Other Female Razor 0.0% 0.0% 0.0% 0.0% 0.0%

Total Schick Women'sSystem 13.2% 12.5% 3.9% 2.2% 1.0%

Venus Base/ Divine 84.5% 82.0% 87.1% 91.4% 92.0%

Venus Vibrance 0.0% 0.0% 0.0% 0.0% 0.0%Sensor/Sensor Excel Women 0.3% 0.1% 0.8% 0.4% 0.0%

Total Gillette Women'sSystem 84.8% 82.1% 87.9% 91.8% 92.0%

Disposable 14,045 14,156 9,872 15,286 15,591

EII/ST 1.9% 2.4% 3.0% 3.1% 3.5%

Xtreme 3 0.2% 0.1% 0.1% 0.1% 0.0%

Others 0.1% 0.0% 0.1% 0.0% 0.5%

Total Schick Disposable 2.2% 2.5% 3.2% 3.2% 4.0%

CustomPlus 0.0% 0.0% 0.0% 0.0% 0.0%

Blue II Ultra Grip 10.0% 12.8% 12.4% 13.3% 17%

Others 0.0% 0.0% 0.0% 0.0% 0.0%

Total Gillette Disposable 10.0% 12.8% 12.4% 13.3% 17.0%

TOTAL BRANDVALUE SHARE Total Market Razor + Blades 64,445 64,632 44,260 68,195 68,824

Total Schick Value Share 23% 22% 22% 22% 24%

Total Gillette Value Share 50% 53% 54% 54% 54%

Segment Market Share (Aftermarket)

VALUESHARE% (Pls indicate source : ___________________ eg. Nielsen Audit, own estimates, etc.. )

Brands FY2005 FY2006 Oct 06 - May 07Act FY2007 Year End Est. FY2008 ABP



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Total Aftermarket Sales Trends

FY2005 Act. FY2006 Act.Oct 06- May

07 ActFY2007 Est. FY2008 ABP

% Growth

2007/2008

*TOTAL MARKET SIZE (VOLUME - '000 PCS)Razor 2,042 1,798 1,023 1,542 1,315 85.3

Double Edge 0

Men's System (excl. DE) 1,908 1,664 970 1,426 1,210 84.9

Women's System 134 134 53 116 105 90.5

Blades 86774 82587 52235 79266 76331 96.3

Double Edge 355 368 212 380 380 100.0

Men's System (excl. DE) 22,061 20,375 13,066 19,601 18,956 96.7

Women's System 183 196 105 210 195 92.9

Disposable 64,175 61,648 38,852 59,075 56,800 96.1

*TOTAL MARKET SIZE (VALUE - US$'000)

Razor 14,397 14,098 8,866 13,761 13,425 97.6

Double Edge 0

Men's System (excl. DE) 13,091 12,808 8,366 12,663 12,525 98.9Women's System 1,306 1,290 500 1,098 900 82.0

Blades 50098 50582 35394 54434 55399 101.8

Double Edge 50 48 27 49 43 87.8

Men's System (excl. DE) 35,528 35,856 25,217 38,559 39,215 101.7

Women's System 475 522 278 540 550 101.9

Disposable 14,045 14,156 9,872 15,286 15,591 102.0

Total Razor & Blade 64,495 64,680 44,260 68,195 68,824 100.9



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Market Share by Brand _ Total Razor & Blade

44.947.1

44.846.7

48.7 48.450.8

49.2

53.3

49.6 49.7 50 49.751.7

53.4 54.5 55.8 54.2 54.653.1 52.5

25.0 24.3 23.0 24.3 24.9

21.3

25.021.7

23.3 23.2 23.6 24.021.0

19.721.4

24.1 22.8

27.826.1

28.6 27.824.7 24.4

25.823.7 22.6

24.6 24.5 23.9 23.5 23.2 2421.9 20.9

22.524.0

19.924.8

19.6

21.8 21.6

23.4

ND

03

JF 04 MA

04

MJ

04

JA 04 SO

04

ND

04

JF 05 MA

05

MJ

05

JA 05 SO

05

ND

05

JF 06 MA

06

MJ

06

JA 06 SO

06

ND

06

JF 07 MA

07

Gillette

Schick

Dorco

Currently Schick’s been gaining its share thanks to Quattor4 franchise.

*total Korea, Value, ACN Retail Index


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Market Share _ Men’s System


59.4 60.757.6

59.5 60.4 60.463.5

58.7

63.4

58.6 58.860.6 60.1

61.864.6 65.1 66.3 66.6 65.9

63.3 64

34.0 32.7 31.5 32.8 32.7

27.731.5

27.429.6 29.3 30.0 30.3 29.9

26.7 25.7 25.527.2

30.1 28.8

6.3 5.98.8 8.1

6 6.28.3 9.1 8.5

11 10.98.6 8.5 7.6 8 7.3 7.3 6.4 6 6.5

25.4

33.0

8.8

0

10

20

30

40

50

60

70

ND 03 JF 04 MA 04 MJ 04 JA 04 SO 04 ND 04 JF 05 MA 05 MJ 05 JA 05 SO 05 ND 05 JF 06 MA 06 MJ 06 JA 06 SO 06 ND 06 JF 07 MA 07

Gillette Schick Dorco



Market Share by Disposable


4.4 5.5 5.1 6.7 8.2 7.8 8.7 9.9 10.6 11 11.9 11.5 11.3 12.1 12.5 14.2 14.9 13.1 13.6 12.6 10.2

2.9 2.8 3.3 3.1 3.6

85.8 85.1 85.3 83.6 82 82.4 81.9 79.8 78.5 77.2 76.6 77.6 76.6 76.2 76.972.3

76.8 75.7 76.9 78.5

2.22.82.6 2.9 2.7 2.9 2.4 2.2 2.5

1.8 2.4 2.4 2.4 2.6 2.02.6

74.9

0

10

20

30

40

50

60

70

80

90

100

ND

03

JF 04 MA

04

MJ

04

JA 04 SO

04

ND

04

JF 05 MA

05

MJ

05

JA 05 SO

05

ND

05

JF 06 MA

06

MJ

06

JA 06 SO

06

ND

06

JF 07 MA

07




Market Share by Channel


60.256

60.855.556.457.156.958.1

60.762.362.662.961.859.559.3

45.644.246.245.945.944.444.247.848.347.748.2

40.844.8

42.143.1

5.54.13.23.63.35.11.51.93.53.44.5 5 6.48.66.3

23.9 24.326.725.627.327.727.823.921.8

19.522.220.320.319.116.818.317.716.716.816.916.8

6.23.11.60.8

6.31.1 1 0.8

5.83.51.21.21.32.22.214.313.812.9

15.715.713.712.811.913.413.8

31.529.432.633.231.33231.132.2

40.836.7

39.538.5

82.886.9

89.990.185.586.3

9091.385.9

88.888.988.888.485.587.5

20.122.221.2

26.427.6

24.622.322.2

28.5

12.512.711.61112.1

30.931.131.5

N D 0 4

M A 0 5

J A 0 5

N D 0 5

M A 0 6

J A 0 6

N D 0 6

M A 0 7

N D 0 4

M A 0 5

J A 0 5

N D 0 5

M A 0 6

J A 0 6

N D 0 6

M A 0 7

N D 0 4

M A 0 5

J A 0 5

N D 0 5

M A 0 6

J A 0 6

N D 0 6

M A 0 7


Large Super Small Super Traditional



A & P Spending

A & P Spending(US$ in 000's) FY2006 Act FY2007 ABP FY2007 REV3 FY2008 ABP

Total Advertising 646 1,063 1,311 1,767

TV Adv ** 595 871 1,278 1,724

Print Adv 129

Outdoor Adv 45 63

Production 34 43All Other Adv 6

Total Promotion 854 1,187 939 483

Consumer sampling # ( pls elaborate below ) 223 161

Public Relation

All Other Promotions 854 1,187 715 322

- trade promotion 481 332 300 247

- consumer promotion 373 855 416 75

Total A&P 1,500 2,250 2,250 2,250

** TV adv spending = 0 870780 1276940 1305000

Total GRP x 690 1303 1450cost of unit GRP 1262 980 900



A & P

Note : Fill in the yellow cells only.

US$'000 % SOS US$'000 % SOS US$'000 % SOS

Schick 100 7 0 1240 57

Gillette 1267 93 1126 100 920 43

Comp. 1 (Pls specify) 0 0 0 0

Comp. 2 (Pls specify) 0 0 0 0

1367 1126 2160

Note : Fill in the yellow cells only.

US$'000 % SOV US$'000 % SOV US$'000 % SOV

Schick 100 9 0 1240 57

Gillette 1028 91 1116 100 920 43

Comp. 1 (Pls specify) 0 0 0

Comp. 2 (Pls specify) 0 0 0

1129 1116 2160

Note : %SOV is percentage of brand's TV media $ vs Total TV media $ for R&B category.

Total TV Media - this is the sum total of all TV advertising dollars of all R&B brands in the market.

Schick Gillette Schick Gillette Schick Gillette

Note : Complete this part only if you have brand tracking research data for Awareness/media spending report from agencies, otherwise leave as blank.

Total Spending All Brands

Advertising Share of Spending (TV, Print. Outdoor)

FY 2005 FY 2006 FY 2007 YTD

Total Brand Awareness

Key Brand Measures

FY 2005 FY 2006 FY 2007 YTD Target FY 200 7

Schick

Brand Awareness

Top of Mind Awareness

Total Unaided Awareness

Total TV Media All Brands

FY 2005 FY 2006 FY 2007

Media Inflation (%)

Advertising SOV (TV only)

FY 2005 FY 2006 FY 2007 YTD



Korea FY08 ABP(Annual Business Plan)

Key Strategy / Action Plan

Korea FY08 ABP(Annual Business Plan)

Key Strategy / Action Plan

June 2007

SWS Korea



• FY07 Key Learning

• SWOT Analysis

• FY08 Key Strategies

• FY08 Action Plan

• MKTG Calendar

Agenda



Key Learning

1. Focusing and preemption strategy (with Titanium) was effectiveto

catch up competitor’s market share

Focusing and consistent message (less irritation) with advanced

razor material “Titanium” will be main stream of 2008 strategy to be

strong no. 2 brand

SO06 JF07 MA07

Titanium 0 9.5% 8.7%

Mach3 57.8% 55.2% 48.5%

Fusion 0 0 9.2%

Market share (value/ men’s segment, AC Nielsen)



Key Learning

2. Razor sampling is getting proven as one of most effective tool tocatch up competitor’s user

Extend aggressive and effective Titanium NG sampling grogram in

FY08 to provide consumer with more chance to use Titanium NG

FY07 Titanium sampling activity

→ Timing: Feb. 2nd ~ Feb.28th,07 (16day, during working days)

→ Where: Seoul, Kuyngki area (heavy traffic spots)

→ No.of sampling: 50,000 pcs

→ Method: Street sampling targeting white color office workers aged 25~40 with big wrapping bus

and highly visible promotion materials for wide branding

→ Post survey and payback analysis (refer to appendix for detail)

Usage rate: 72%

Blade purchase rate: 16%

Conversion rate from GL or other competitor brand: 12%

Conversion rate from Schick other product: 4%

Payback: 2.5 years



Key Learning

3. While market growing is steady, trade-up is going on in consumer side even in disposable category Launch Firefly in disposable category

MA04 MA05 MA06 MA07

Gillette Blue II 5.1% 10.6% 12.5% 10.2%

Dorco T3 3.5% 7.0% 12.0% 14.6%

Market share in disposable (value/ AC Nielsen)

4. Distribution coverage is key driver of growing disposable business

Increase distribution coverage in GT channel by activating strong vanvendor program after AKI

MA04 MA05 MA06 MA07

Gillette Blue II market share 5.1% 10.6% 12.5% 10.2%

Gillette Blue II AC distribution 47.0% 60.0% 58.0% 60.0%

Disposable 100%, AC Nielsen



Key Learning

5. P&G’s pushing girl power seems to be much stronger than

Gillette period

Set up competitive MD operation system (combining with battery)

by September







FY08 Action Plan

1.Titanium NG launch

Objectives: Reinforce titanium momentum with upgradedTitanium and head to No. 1 shaving razor share in hypermarket.Launch time: Nov ‘07Positioning : New /upgraded Titanium with edging blade.Product : less irritation with 4 blade + 1 edging blade

Ergonomically designed handle,

more advanced blade quality with Titanium.Pricing: same as current Titanium.Distribution:

KA channel: support MD activities and mega display etc.,Vendor channel: incentive for distribution expansion



2. TV advertising for Titanium NG

Objective : Reinforce current Titanium positioning with

announcing news of edging blade benefit.

Copy : modify Japanese model version for emphasizingmessage of “ less irritation with Titanium”

* Add Tag-on for Titanium Shaving foam to support toiletry drive

Media buying strategy :Try to achieve threshold level

GRP(1800GRP) by focusing CPRP effectiveness.

Time: on-air from November

FY08 Action Plan



3. FY08 Street Sampling

Objective :Hand Titanium NG handle over to selected GL users

to boost brand switching.Strategy: 1)Elaborately screen out non-target group to increase

conversion rate up to 14% (12% in FY07).2) cost cut in handling agency fee.

3) communicate regularly post samplingProgram mechanism:

Target (white-colors) screen by mobile profiling data.

Distribute handle in the designated CVS (save dist. cost).Collect name card for CRM activities.(70,000samples)

Time : Jan to Feb 08.Mobile sampling case (appendix-FYI)

FY08 Action Plan



4. Van-vendor incentive program.

Objective : Expand distribution coverage in SSM to drive

disposable ( Vendors : 180 (07) ---250(08))

Target: ACV 33%(FY07) --- 39% (FY08)

Program mechanism:•Assess current coverage of the each vendors in Oct’07•Vendor submit list of their new coverage store

•Check 10% of stores they submitted in list in random way.•Give incentive if result of random checking match with list they

submitted.

Timing : Year around FY08

FY08 Action Plan



5. Toiletry drive.

Objective : catch up volume and profit in sizable and growing

category by utilizing brand

Target: 630MM KRW 42% up from FY07 LE(422MM KRW)

Product: 1)SG Foam 150g : soft gliding and skin protection

2)SG Gel 200g : soft gliding and skin protection

3)Titanium Foam

Strategies•Distribution increase :same level with Men’s system in LSM and

SSM•Pre-pack activities•Titanium Foam launch by supporting of TVC tag-on

Time :Year around FY08

FY08 Action Plan



FY08 Marketing Calendar

Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep

New Product

Launch

Titanium

NG

Titanium

Foam

MKTG Activities

Ads.

Consumer Promo.

In-Store Promo. Family Month Promo. Summer Promo. Thanksgiving

Display Rack

Vendor Promo.

Street Sampling

Q4Q1 Q2 Q3

TV & CATV Campaign

Van-vendor Incentive promo.

Mega display

Titanium NG Launch Promo.

(Swap promo./On-pack)

On-Pack Promo.

Toiletry promo. (Pre-pack / TVC tag-on)

Display Rack Display Rack Display Rack

Marketing Activity Calendar

(Subject to change)

Documents

Korea FY08 ABP Mktg Plan_07 06 19(Final)