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Case Study Competition

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EVENT FORMAT

Stage 1: Participants of each college must battle it out amongst themselves to decide the best

team. Campuses are free to decide their evaluation criterion.

Stage 2: The Best Entry from each college must be uploaded on www.rb.com by 23:59:59, 3rd

November, 2011. This may be routed through the Placement Team/General Secretary.

Stage 3: Grand Finale – Held at North Campus, Delhi University for the best 6 teams on 17th

November, 2011.

RULES AND REGULATIONS

1. Event is open to the Full Time Programs (both years) of the following B-schools

S. No. Name of the institute

1 IIM A

2 IIM B

3 IIM C

4 IIM L

5 IIM K

6 IIM I

7 IIM R

8 FMS

9 MDI

10 IIFT

11 IMT

12 IIT DMS

13 NMIMS

14 SP Jain

15 JBIMS

16 SIBM

17 SCMHRD

18 MICA

19 IIT Bombay

20 XIMB

21 ISB

22 IIT Kharagpur

23 IIT Roorkee

24 NITIE

25 XLRI

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2. Maximum number of members in a team is two. Each team can submit a maximum of 1 entry.

3. No participant should be part of more than one team.

4. Any number of teams from an institute can take part in this event and can submit their entries

to their institute by 27th

Oct 2011. However, only top entry must be sent to us at the end of the

campus evaluation round.

5. The Top entry from each college is required to be uploaded on www.rb.com latest by 23:59:59

PM, 3rd

November 2011 with the file name as Veet_<Institute>

6. Each entry should be in the form of a detailed (not an executive summary) word document

(2003 format) named as: Veet_<Institute>_<TeamName>

7. There are no word limits. However, teams are advised to be succinct.

8. The font must be Calibri, size 11, single line spacing

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9. Members of the final selected teams would be reimbursed 3 Tier AC Tickets (both ways). The

selected teams would be required to submit original tickets for the same.

10. The decisions of the panel of judges will be final and binding on all the participants.

PRIZES

1st Prize: Rs 1 Lakh

2nd Prize: Rs 60,000

3rd Prize: Rs 30,000

All the 3 winning Team members will also get Pre-Placement Interviews from Reckitt Benckiser.

CONTACT DETAILS

1. Karan Kapoor

karan.k12@fms.edu

+91 9999193654

2. Chitrang Desai

chitrang.d12@fms.edu

+91 8800395334

Keep checking www.rb.com/in for more updates.

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Veet: From Sticking to knitting to knitting to stick*

*Case developed by Dr Harsh V Verma, Faculty of Management Studies, University of Delhi, Delhi, for

Reckitt Benckiser India Ltd.

Opportunity is a matter of perception. It is not for every eye to spot opportunity. Only a

perceptive eye can achieve this feat. Hair removal market in India has remained quiet and sleepy

for very long until RB (Reckitt Benkiser) forayed into it with its Veet brand in 2006. And in a

short span of seven years of its launch the brand transformed the category from a meager Rs 50

crores to Rs 350 crores creating a seven fold jump. The brand went on to become not only

market leader but a dominant player leaving the incumbent brands far behind. It certainly is a

remarkable marketing feat. But success is intoxicating. Success fuels desire to succeed further.

For Rajneesh, marketing manager (personal care business) and Sandeep, brand manager (Veet),

this certainly has been a milestone reached, but they both seem to concur that this market

leadership of Veet is not an end itself rather a beginning. Though Veet’s claim to fame has been

hair removal or hair depilation, this is not the only knitting to which the brand must stick for

ever. How far can the brand go if it sticks to its territory of hair removal, certainly not very far?

Both Rajneesh and Sandeep intuitively feel that Veet masks huge potential to become a mega

brand simply if it manages to transcend its current product domain. Sticking to knitting is fine

but it is also limiting. But a brand like Veet can grow leaps and bound if the brand finds new

knitting. Amidst this conviction, there is confusion as to what course the brand should take and

how.

The Company

Reckitt Benckiser is a multinational corporation with presence in over 180 countries. Its origin

dates back to 1823 when Johann A. Benckiser laid its foundation. With over 150 years of

existence the company is founded on British and German heritage. The company has

distinguished itself for bringing innovative solution to meet customer needs. Reckitt Benckiser

(RB) came into existence after the merger of Reckitt & Colman and Benckiser in 1999. This

merger created world’s top house hold cleaning solution provider. RB operates in a number of

high growth categories considered to be at the core of its business strategy: fabric care, surface

care, dishwashing, home care, health care, personal care and food. Four of the top amongst these

in terms of revenue are fabric care (22%), health care (26%), personal care (20%) and surface

care (17%). The company has operations in 60 countries, sales in 180 countries and has had net

revenues in excess of 6.5 billion pounds last year.

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Reckitt Benckiser India Ltd (RBIL) is a fully owned subsidiary of Reckitt Benckiser Plc.The

year 2010 saw the company achieve very strong financial results despite not so positive

economic conditions globally. Net revenues grew by 9% to £8,453m and adjusted operating

profit was up by 18% to £2,231m. This performance, following a number of years of strong

growth, is a testament to the global strength of the Company's strategy and execution, and the

quality of its employees and their leadership.

RB has strategically built an impressive brand portfolio in the above categories. Most of its

brands consistently figure on the shopping list of customers worldwide. RB’s brands stand apart

from others by combining an irresistible combination of innovation and value for money. A total

of nineteen power brands drive company performance including Airwick, Dettol, Clearasil,

Disprin, Harpic, Lisol, Mortein, Vanish, and Cherry Blossom. Most of these brands enjoy top

positions in their respective markets. These are either number one or two in their categories. For

instance, Lisol is a number one disinfectant brand in the US. The other brands that lead the

category include Dettol (antiseptic), Vanish (fabric stain remover), Harpic (toilet cleaner) and

Cherry Blossom (shoe polish).

For RB India like other countries where it operates, most of its brands are top performers in their

respective categories. A good innovative product when combined with ingenious marketing

methods creates a mix par excellence. For instance a great marketing feat is achieved when an

antiseptic brand like Dettol was completely transformed into to a health brand. Dettol subtly and

strategically moved away from antiseptic yet leveraging its core benefit to become a brand

embracing new product categories like toilet soap, shaving cream, talc, plaster and hand wash.

Company’s toilet bowl cleaner brand Harpic enjoys market leadership with a share close to 75%;

glass surface cleaner Colin tops the category with about 88% share and mosquito repellent brand

Mortein dominates the market with about 20% share. One of its recent launches, Vanish a fabric

stain remover, went to create and dominate the fabric stain remover category. Most of these

brands are either number 1 or number 2 in their respective categories in India

The company’s products need a wide distribution set up in order to reach their target customers.

Some of the products typically fall in the fast moving consumer categories which require

servicing a wide market area. RBIL uses its common distribution channels for distribution of its

products which enjoy wide and deep reach in Indian market. This is one of the important

strengths of the company. The channel system of the company is managed by its well structured

sales force which is accountable for ensuring supply and sales of company’s entire product

portfolio of more than one hundred and fifty stock keeping units.

Quick way to leadership

Veet brand was launched in India in 2004 and within a very short span of time it went on to

become the category leader. At the time of its launch the total category sales stood at Rs 50

crores. Seven years later in 2010, Veet became a Rs 350 crore brand registering a seven fold

increase in seven years since the time of its launch. Like many of the other RB brands, Veet is

the number one depilatory brand in the world. It reigns at the top of the heap in the hair removal

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products category. Following the global footprints, in India too, Veet has emerged as the top

most hair removal brand.

Prior to the launch of Veet, hair removal market was in a state of dormancy. Only a few brands

competed in this space. One of them has been the Anne French brand from Wyeth Consumer

Healthcare. India. This brand has been present in India for over four decades and as a result of its

long existence in the market it developed a close connection with hair removal. Being probably

the first mover and having been present in the market for a long period, the brand was not

aggressively promoted. Its communication, few and in between stressed on the ease with which

hair could be removed. The brand simply promoted how the product could be used to remove

hair conveniently. The advertising of the brand followed an illustrative or demonstrated approach

to explaining the prospective customers as to how hair could be removed by simply applying

Anne French cream on the body to get rid of unwanted hair. The central idea centered on the

product functionality.

A period of long presence in the market can both be a burden and an advantage for a brand. It

can be interpreted as heritage and hence excellence which could be leveraged to build brand

strength. At the same time long existence can also imply ‘old’, ‘obsolete’ and of ‘yesteryears’. It

is in this context that a long standing brand requires a careful and tactful manoeuvre. Anne

French’s reality was somewhat similar. It was a brand with time of its side but it was not

contemporized as time passed by. The result was a brand which enjoyed high recall and

recognition and continuous support of customers.

Rajneesh, Marketing Manager (personal care) is joyous over the feat that Veet managed to

achieve:

We studied the category and found immense potential waiting to be exploited. There were

few players, at top Anne French followed by others like Fem. Anne French was known

nationally with high recall and recognition in the target segment but here was a brand

which was stuck in a time capsule. The brand was entirely promoted on the plank of

product functionality. It focused on the ease of hair removal. But the brand image was not

modernized to meet evolving desires and aspirations of target customers. Time or its long

existence in the industry had rendered it fuddy-duddy meant to be used by only older

customer. It was like „my mom‟s brand, not for me‟.

The writing on the wall seemed very clear. The category was shouting out loud for players to

join and provide what children of a liberalized era wanted. Liberalization and its consequent

impact on consumer economy and consumer psychology fueled the growth of segments closer in

outlook with any developed market of the world.

Sandeep, Brand Manager (Veet) concurs with Rajneesh:

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There has been a subtle shift from sustenance led consumption to pleasure seeking. People

want excellence in product functionality, but this is only the starting point. Now customers

are willing to pay more if the brand delivers something beyond product functions. If a

brand can rise up in the value ladder and forges a connection, it would certainly be

rewarded. Consumption Consumers are making a transition from sustenance to

indulgence. We had a brand in our portfolio which led the depilation market world wide.

And the Indian market seemed just right for its launch with only one issue that needed to be

resolved and that was what approach the brand should take to take on the then existing

players.

Further examination of the category threw up other interesting insights. The products available in

the hair removal category had not evolved with time and thus as a result these formulations were

inferior to the ones marketed elsewhere. These were not improved over time. In a way these were

primitive. This category suffered from lack of innovations. It was not just the product, even the

marketing, especially communication did not convey any sense of excitement. The brands stuck

on to the matter of fact reason centric copy, more like sponsored information. Ads showed how

application of the product allowed easy hair removal. Relying too much on the ‘reason why’,

communication failed to activate emotional triggers. This probably has been due to the fact that

product like this is not openly talked about. Hair removal deals with private parts and to promote

this aggressively could have violated the sense and sensibilities of people twenty thirty years

back. But things had moved on, yey brands did not.

Veet needed a strategy by which it could directly connect with its customer better and at the

same could set itself apart from other brands in the category. Rajneesh explained how Veet

carefully negotiated this challenge:

We were particular about making our objective of achieving brand leadership through

innovation both in product and branding. Veet is a world class product with a superior

innovative formulation. So we scored better on this count. However communication was a

challenge. Instead of focusing on product functionality, we brought what customers seek

by using a product like this at the centre of our brand building. Our strategy was to

develop further on from superior hair removal and make a transition to benefits and we

chose beauty and the confidence that comes as a result as the rallying point in our

communication. We got our brand endorsed by Katrina Kaif, one of the top actresses in

Bollywood. Katrina‟s endorsement allowed the brand to develop strong linkage with

words like the „beauty‟, „attractive‟, „success‟ and „modern‟. The ads showed how using

Veet makes skin smooth and attractive. Katrina was shown as arresting the attention of

the opposite sex after product usage and gesticulating „V‟ for victory at the audience.

The brand communication found an instant connection with its target customers. It built

resonance by relating with below the surface desires to be beautiful and ultimately be attractive

to the opposite sex. Hair removal’s instrumentality in achieving higher order goal made the

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brand an instant hit. It did not take much time for the brand to emerge as the category leader (see

exhibit 1). Veet managed to put action into a sleepy category with the result that both the

category and the brand expanded impressively (see exhibit 2)

Market Reality

Veet’s emergence as the dominant player in the hair removal category is certainly an appreciable

achievement. But a perceptive glance at the market also reveals that there lies phenomenal

opportunity to catapult the brand on to a higher valuation if the total market expands. First of all

the category is not yet fully penetrated. Hair removal penetration is relatively lower in India as

compared to other markets of the world. Only about a 68% percent of the people do depilation

compared to above 80% in developed countries like the US, France and Spain. Hair removal

penetration is even lesser for arms and legs at 40%. Secondly there is tremendous scope to

multiply per capita consumption if customers who visit to salons for depilation could be shift to

self depilation. The ‘salon only’ market is larger in North and West India.

The usage of hair removal products is related to age. Its consumption goes down with age. The

user of the category tends to be younger, single and educated. More than half (54%) of the

women in the age group of 15-34 years use hair removal products and this percentage drops to

39% for 34-44 years age group. This goes down further to 18% for 45-65 years age group. The

category consumption is also related to social grade. People in the higher social group are greater

users of hair removal products. The Indian market is not much different when it comes to

product usage concern. Hair removal product penetration/usage in terms of body parts is similar

to that in other countries. The application areas for hair removal products are face, underarms,

arms, stomach area, bikini line, upper legs and lower legs. The top three application areas in

India are underarms, bikini area and face. This is in line with other markets. The Indian customer

differs from the others with respect to usage on legs. Upper leg and lower leg usage in India is

11% and 24% which is much lower than 59% and 93% in other markets.

Hair removal products are very intimate and personal. The path between Veet and customer is

not straight and simple. It is full of myths and psychological barriers. Rajneesh explains:

The industry offers hair removal solutions in the form of waxes, creams, and razors. And each of

these products comes with their own perception baggage, some parts of which are positive and

some negative. Razor is quick but difficult to use and does not give the smooth effect. Wax is

cumbersome, messy, time consuming but is perceived to remove hair from the root, effect lasts

longer and gives smooth effect. Creams are easy to use, gives smooth skin but people perceive

that creams make skin dark and these are chemical formulations. This perceptual bias works

against creams, hence against Veet.

The usage of hair removal products can be broadly classified into two categories. Creams are used

mainly for Underarms and bikini area. This is hygiene depilation. Arms and legs depilation is guided by

the consideration of beauty. These are exposed part of the body and hair on them makes the person

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unattractive. This is beauty depilation. Data on the product usage and application area is give in exhibit 4,

a careful glance reveals that there is a scope for Veet to become bigger if it penetrates into application

area where waxes and razors are used more. Sandeep, the brand manager for Veet articulated the

challenge:

The brand can become bigger if a shift in the product usage type is achieved. Wax is dominantly

used for beauty depilation. There is an opportunity for a brand like Veet to expand by shifting

people from wax to creams. Cream usage is higher for hygiene depilation. The usage of razor is

also high for underarms and bikini area depilation. Hair removal for beauty involves bigger

quantity usage hence this shift promises big opportunity.

Waxing is predominantly a parlour activity. It is not simply the process of getting rid of unwanted hair for

beauty purposes for which parlors are visited. Factually waxing is time consuming, messy, painful and a

joint process. With all its negatives waxing looks like an inferior solution to customer needs compared to

creams. Creams are neither messy nor painful. They save visit to parlour and are empowering. Therefore

a shift from wax to cream is logical. Reading this opportunity a cold wax strip variant of Veet was

launched. The anticipation was that the market would explode and target customer would lap it up. By

this extension it was expected that Veet would steal a large market away from parlours. The ready to use

cold strip version of Veet was met with only part success. Instead of getting into a permanent routine, it

ended up being a solution only for emergency situations.

One man’s reason is another’s unreason. There has to be something more than simply hair removal in a

visit to a beauty parlour. Had it not been so then cold wax strip of Veet would have become a blockbuster

success. Waxing and hence a visit to a parlour is rooted in the psycho-social reality of women. A visit to a

parlour apparently involves planning, taking time off, and undergoing the pain, yet the shift to creams is

not easy to achieve. There is something more, highlights Rajneesh:

A beauty parlour is not simply a functional space. It is cherished for its own psychological and

social significance. Women do not simply visit for waxing rather their visit is combined with

other beauty routines like eye brow shaping, pedicure and manicure etc.. Besides these „reasons

why‟ there are other implicit needs which parlours satisfy. Parlours are pampering places. The

beauty routines performed on customers by the staff creates an uneven power equation where the

women assume power over the server. It gives a great feeling. Parlours are also exclusive

meeting places with friends; the interactions with staff evolve from a professional relationship to

a personal relationship. Here people can freely gossip, exchange ideas and learn beauty tips.

Beauty parlours are not only direct competitors to Veet but also bad ones. In order to protect their market

and perpetuate dependence, parlours are also myth generating places. Customers hold parlour staff as

knowledgeable and expert. Directly or indirectly a bad word about creams is spread such as creams are

harsh chemicals and therefore the skin can get damaged, usage of creams leaves dark spot and creams

remove hair from surface without taking them off the roots. This has been obstructing the brand’s growth,

Sandeep feels:

Veet comes in different sizes. The international 100 gm which sell the most in western countries

does not move that fast here. Veet also comes in a 60 gm pack, which is about 25% contribution.

A small pack of 25 gm was launched to facilitate trials. But this variant went on to become the

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largest seller. The sale of smaller pack implies that first of all people do not use cream for beauty

depilation (arms and legs) because it requires larger quantity. Secondly this pack too is kept to

meet unexpected emergency situations. Getting people to use Veet for beauty depilation is an

important marketing challenge.

New Knitting

All through Veet has been guided by the understanding that for customers ultimately hair removal is not

an end itself. Customer ultimately wants to look and feel beautiful and to be attractive to others.

Accordingly brand’s communication strategically focused on benefits such as smooth skin and beauty and

kept the hair removal in the background. Quite unlike other brands in the category which rallied the idea

of hair removal and ease or product functionality, Veet built its equity based on emotions (‘confidence

that comes with smoothness’). The ad execution typically followed a concept very similar to beauty

brands use celebrities or attractive model as emotion triggers. It is in this context Katrina Kaif who

epitomizes success, beauty and sensuality, played a significant role. Veet’s strategy combining an

innovative superior product with excitement and glamour of a beauty brand paid off very well. Leadership

surely is satisfying but this can’t be everything. Explains Rajneesh:

There have been many instances when a successful brand went on to become a mega brand by

crossing over its existing product boundary. For instance, Dettol evolved from being solely an

antiseptic lotion brand. It has become a dominant health and hygiene brand and accordingly

apart from antiseptic lotion it enjoys a wider range of products in its fold such as bathing bar,

talc, shaving cream and hand wash. On almost similar lines, one of the bathing bar brands,

which for a long period of time was exclusively sold for its „1/4 moisturizing cream‟ has gone on

to become a much bigger brand. The brand now sells shampoo, lotions and creams along with its

original product ,a bathing bar. The brand essence of „1/4 moisturizing cream‟ was

reinterpreted as „less damage or damage free‟ to support products in other categories. One

option for Veet is to be content with its leadership and stick to its knitting and build volumes

within this space. Second is to make a transition to becoming a bigger beauty brand or find a new

knitting. Does Veet have a legitimate right to do so?

Examples are illustrative. A lot can be learnt from examples but blindly following the success model of

others is full of risks. But then there are many good examples in the industry which show how some

brands move on with time by not just withstanding the challenges unleashed by change, but rather by

proactively converting these into business opportunity (see exhibit 5).

Within the hair removal market, Veet is marketed in different variants both in terms of sizes (25, 60, and

100 gm) and types to suit application and skin type (normal, dry, skin and suprem essence). Same is the

case for its wax strips. These are marketed in three variants-for normal, dry and sensitive skin. This

strategy to extract volume by market penetration has contributed to Veet’s leadership in the hair removal

market. It is a critical time for the brand. It probably is a time for the brand to make a transition. Its equity

could be leveraged to build business in other categories. This is only possible if the customers find the

brand relevant in the beauty space. The body routine includes primarily four care areas: face, body,

fragrance, and bath (exhibit 6). There are a number of brands worth emulating, points out Sandeep:

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Brands like Ponds, Vaseline and Dove are particularly instructive. Pond‟s earlier was cold

cream, Vaseline was known exclusively as petroleum jelly and Dove was a bathing bar. Consider

now, all of these brands have made a very successful transition into becoming multiproduct

brands. The time probably has arrived for us to explore new pastures for Veet by transforming it

into a beauty brand. Optimism is fine, but wrong moves sometimes can backfire and erode the

equity of a primary brand. We certainly do not want the brand to make a blind move.

For Veet to succeed in new product categories the brand must add a relevant and differentiating

dimension. In this context Veet has cultivated equity based on ‘smooth skin benefit’ supported by

aspiration and attraction created by its celebrity endorser. The following statements summarize

customers’ feelings towards the brand:

“Veet makes our skin feel smooth after using it”; “Katrina fits the brand as we all want our skin

to be like hers”; “Veet has better fragrance as compared to other players” ; “I generally don‟t

require to apply cream afterwards, it has some moisturizing lotion”; “Veet is an international

brand” ; and “It‟s less painful than waxing and less risky than using razor. It doesn‟t make our

hair hard”

On the whole the brand comes across as sophisticated, premium and international. Endorsement by

Katrina Kaif has contributed to the creation of brand’s personality as glamorous, stylish, and

sophisticated. The values associated with the brand are: good fragrance works in three minutes, easy to

use, and leaves the skin smooth.

Optimism and Caution

Veet enjoys a clear functional advantage over its rival brands in its home category of hair removers. It

also enjoys equity based on non-functional aspects. The Exhibit 7 provides a critical look at the brand.

Veet’s functional value delivery runs common across competitive brands except that its fragrance makes

it different. The associations such as ‘international’ and ‘sophisticated’ are relevant for a select set of

customers which makes its appeal limited to a premium niche. Other customers may find it difficult to

relate with the brand. The glamour and sex appeal added by its endorser may be perceived as superficial

in the absence of credible credentials as a beauty brand. Exhibit 8 shows the imagery associated with the

brand. The brand conjures images of confidence, carefree, glowing, glamorous, and smooth and supple

skin. Do these associations make the brand ready to take a plunge into the beauty space? These

associations do create lure and temptations but this is insufficient. The brand must offer some

differentiated value to customers to create pull.

Since its launch, Veet has managed to establish its credibility in the hair removal space with ‘smooth

skin’ benefit. The growth trajectory for the brand can take three forms: first, extending the core range of

hair removal product by launching different hair removal products and moving up to premium formats

(product centric). This has already been done. Second, the brand can move into new product categories

beyond its core product domain by directly stretching on the core proposition of ‘smooth skin’ (benefit

centric) and retaining the association of hair removal. Third, this is an indirect path to grow the brand.

This would involve exploring brand growth avenues by extending the brand into beauty category. This

can only be achieved when the brand connections are based on non-product or abstract considerations like

‘smoothness and beauty’ (see exhibit 9).

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Personal care consists of a number of routines. These include caring for the face, hand, hair, and skin (see

exhibit 10). The overall depilatory market is limited to a small portion of the total personal care market.

Sticking to the depilatory market severely limits by its size and growth prospects. Veet can grow if it is

able to branch into other underleveraged segments of the personal care market. The feeling that runs

through the team behind the brand is that of optimism and caution. Both marketing manager and brand

manager at Reckitt Benckiser agree:

There is an opportunity for transforming Veet into a „beauty brand‟. But this is not a cake walk

either. Specifically we need a road map with a complete milestone plan for the next five years for

making Veet a beauty brand. There are very specific issues which need to be addressed: first of

all what needs to be done to move Veet‟s equity from being a „hair removal brand with some

smooth skin connect‟ to a „true beauty brand ‟. Second, the new segments in which Veet can enter

in the personal care space. Third, what new products with relevant product differentiators could

be launched in new segments? And finally, what specific initiatives must be undertaken so that

this transition is smoothly achieved?

It has been a long time since anything like this has been initiated. Everyone agrees on the point that there

is an opportunity waiting to be exploited by Veet but at the same time doubts also cloud thinking. Global

marketing head of Reckitt Benckiser who is expected to arrive in India for a review meeting has posted

the following concerns:

Veet has all along been a depilatory brand known to provide „smooth skin‟ benefit, how is the

brand going to be seen by customers in other categories? There are strongly entrenched players in

the beauty market. What blueprint does Veet have to succeed against these giants in the beauty

space? What differentiating value would Veet bring to beauty customers in order to push the

purchase trigger? Success in hair removal market does impose and create a baggage on the brand

which may hinder its smooth transition to beauty category. What tactical maneuvering would this

require? And above all it is very critical to choose the right category and right now it is unclear as

to what categories are more suitable than the others.

Apart from the above concerns, it is important to spell out what the brand should do to exploit its equity

in the interim period before new products are launched. How should the brand build further on its beauty

appeal and take it to a higher level so that later the brand is not seen with skepticism in the beauty

category? Apart from the transitioning issue, right now what can be done to make Veet even a bigger

brand in its home turf of hair removal?

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Exhibit 1: Brand communication

• Progressive steps towards ‘Beauty Brand’

communication:

– Phase 1: Focus on emotional benefit (instead

of functional benefit) of ‘Confidence that

comes with Smoothness’

– Phase 2: Production values and storylines

similar to other beauty brands

Super Model Copy Gesture Copy

Style statement Copy Disco Copy

Suprem’ Essence Copy

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HR Market Trend

355 359 398514

8221024

1882

2177

2633

3105

0 0 0 8 100 198416

590792

1070

0

500

1000

1500

2000

2500

3000

3500

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

INR

Mn

Mkt. Value VEET-Value

Exhibit 2: Veet and HR Market

Veet‟s

EntrySleepy category,

Not Much Action

Robust Growth in Category

©20

09 I

psos

Arms 31%

Bikini Line 82%

Underarms 83%

Exhibit 3: HR Penetration by Body Part is in line

with other markets apart from legs

Upper Legs 11%

Stomach 4%

Lower Legs 24 %

Face 69%

Q2 Which of the following parts of your body have you ever removed hair from?Q2 Which of the following parts of your body have you ever removed hair from? Base: all respondents

68%

94%

18%

14%

81%

59%

93%

• Arm & leg hair removal is higher among young women driven by the garment preferences of

the young; higher SEC groups also follow this pattern

• Arms & Bikini Line showing apparent growth

Trend vs 2001

=

=

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Exhibit 4: Hair removal product and application area

Exhibit 5:The Journey of a few brands to „Beauty

Brand‟ Status!

SoapsOther bath

products (shower

gels etc)

Shampoos &

Conditioners

Cold

Cream Body Lotions Face Washes

Moisturizing

jelly

Body lotions /

Whitening creamsMen’ grooming

Face Washes

Started out as a Non

face product - Seen as

a “Moisturization

brand”

Started some what in

the face domain: Seen

as a delivering

“Moisturized skin”

Cosmetic

RangeFace Washes Body lotions

Started out as a

cosmetic product –

Seen more as a beauty

brand

Started out as a face

product – Seen more

as a brand delivering

“Soft Skin”

Beauty Brands not just about cosmetic credentials but about a “strong

skin benefit” which can remain relevant across categories

16

Exhibit 6: Normal Beauty Routine of an Indian Girl

Face Products:

• Skin lightening cream,

FaceW, Moisturizers,

Cleanser, Face packs

• Cosmetics, Pimple

creams

Full Body Products:

• Moisturizers

(+Nourishing Body

lotions)

• Skin lightening cream

• Hair removal Products

Fragrance based Prod:

• Deodorants (Aerosol

& Sticks)

• Perfumes

In bath products:

• Soaps

• Shower gels

• Shampoos

17

International Sophisticated Niche

Efficient Long

Lasting

Clear

functional

hooks hence

but

Katrina Sexy Glamorous but

These values are equally owned by competition though Veet has marginal edge in the

area of fragrance

Fragrance

The brand has a premium association which distances consumers – not as relatable

The glamour quotient lends a superficial, alluring edge to the brand Katrina plays the

role of a celebrity in the communication which ads to it’s niche imagery

• Exhibit 7: Strong premium & glamour associations provide a launch pad for

Veet to enter into new “Beauty Categories”

Exhibit 8: IMAGERY OF VEET

29Carefree Attracts

Smooth, supple skin

Confidence

Glowing skin

Stands Out

Glamorous

The collages portray an image of

the brand which is:

- International - Sleek

- Alluring - Sexy

- Associated with smoothness

The imagery suggests a brand that tempts but doesn’t offer

substantial value or differentiation within the category

The imagery is strongly layered by

HR category codes

• Veet imagery rooted in HR category but has

potential to make the move to a beauty brand

• Operating outside HR category can strengthen the

smooth skin cues

18

Exhibit 9:Veet Brand Stretch: Proposed

Roadmap

Veet

CWS

/ Wax

Veet

Premiu

m

Formats

Veet

Cream

s

Veet

CWS

/ Wax

Veet

Premiu

m

Formats

Veet

Cream

s

Product A

Product B

Veet

CWS

/ Wax

Veet

Premiu

m

Formats

Veet

Cream

s

Product A

Product B

Product X

Product Y

Linkage (Physical

Product): Hair Removal

Linkage (Product Truth):

Smooth skin

Linkage (Umbrella Benefit

& Brand Personality):

‘Smoothness’ & ‘Beautiful’

1. Core Range

Extension

2. Direct

Stretch

2. In-Direct

Stretch

19

Exhibit 10: Attractive opportunities for Veet!

Indian Hair Removal market small compared to some other personal care segments which Veet can be possibly enter

Many under leveraged segments in Indian personal care market which Veetmay be able to enter and pioneer like it did in the case of the HR market; e.g

In India Body care: Hair Removal market ratio 1:1, very different from other developing markets; Middle East: 4:1, Brazil: 12:1, China: 7:1