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Sun Care RangeVichy – Capital Soleil
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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
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Flow of Presentation
Sun Screens
Need Gap Analysis
Industry
Competition
STP Analysis
5Ps
SWOT
Budget
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Sun Care
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Sun Care
Far more than a conventional beauty product industry
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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
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Sunscreen v/s Suntan
•Aims at providing the user with artificial tanning
Suntan
•Aims at providing user with protection from UVA and UVB
Sunscreen
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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
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Types of Sunscreens
Opaque materials like titanium dioxide, zinc oxide which reflect light
Opaque materials – physical block
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Adverse Effects of Sunscreen
Cancer
Decrease in warning signals
of sunburn
Penetrates into the skin
Allergic reactions
Inhibited production of
Vitamin D
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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
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Sunscreen Efficacy
Skin type
Amount applied
Frequency of reapplication
Activities one engages in
Amount of sunscreen
absorbed by skin
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Goals of Capital Soleil
Educating consumers about
sun-related health risks
Protecting all skin types with the best
sun protection products
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Need Gap Analysis
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Sun Care
Skin Damage
Tanning
Wrinkles
Skin Cancer
Premature Aging effect
Brown Spots
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India
Tropical Nation
Population well spread
Sun Protection throughout
the year
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Incomplete Care
Expenditure on cosmetics
rising
Skin Care gaining
importance
Current Product
Range not effective
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Special Needs
Different skin types
Sensitive skin
Sweat Resistant
Kid’s Range
A family product
Emphasis on Men’s Needs
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Industry
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Global
In 2010 - $4.9 billion,•increase of 27.7% since 2005
In 2010 - 515.7 million units•increase of 16.7% since 2005
sun protection products• 66.3% of the global market's value.
L'Oreal has a 12.6% share of
the global market's value.
Supermarkets and hypermarkets
distribute 37.8%of the market's value
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India
Skin care industry
•$ 200 Million
Sun care industry
•$ 30 Million•20% growth
Prescription sunscreen market
•$ 3 Million •14.30% growth
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Suncare Market in India
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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
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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
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Characteristicsfew major players
high entry barriers
fairly high rate of new product launches
Cost of importing products high
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Competition
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• Pharmacy• Retail• Direct• Salon
• SPF 15• SPF 30• SPF 50
• Different chemical compositions
• Cream• Spray• Gel• Wipes
By Channel By Protection
By ContentsBy Base
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Lakme HUL Garnier
Himalaya Lotus
Clinique Ayur Shahnaz
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Ranbaxy
Stiefel
Dr. Reddy
Glenmark
Microlabs
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S.T.P. Analysis
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Segmentation
Demographic
Income
Age
Gender
Skin type
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Segmentation
Geographic
Urban v/s Rural
Regional
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Segmentation
Psychographic
Skin Care Conscious
‘Looks’ Conscious
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Segmentation
Behavioural
Occasions
Texture preference
Brand loyalty
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Targeting
Targeting the urban affluent family
A product range to suit
different
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Positioning
Health is vital. Start with your Skin
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Positioning
A product for everyone,
because everyone is unique
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Adventure Sports
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Amusement Parks
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Beach
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Cricket
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Dermatologist
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Kids
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Malls
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Tourism
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TV/ Movies /Shows
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Market Survey
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Market Survey
60 60%
Respondents
MaleFemale
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Usage
Men
NiveaFair & LovelyFair & Handsome
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Usage
Shahnaz; 10
Fair & Lovely; 22
Lakme; 30
Garnier; 23
Nivea; 12 Ayur; 3
Woman
ShahnazFair & LovelyLakmeGarnierNiveaAyur
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Why do you use sun care?
Sun Protec-tion; 80
Tan-ning; 14
Others; 6
Sun ProtectionTanningOthers
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Who else in your family use ?
Kids; 3
Parents; 33
Spouse; 50
Sib-lings; 14
KidsParentsSpouseSiblings
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Do you know your SPF requirement?
Yes; 55
No; 45
Response
YesNo
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Does your Lipstick / Lip Balm have SPF?
Yes; 6
No; 29
Dont Know; 65
Response
YesNoDont Know
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How much would you pay ?
<100
100-200
200-300>300
<100100-200200-300>300
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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
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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
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Product
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Product
Sun
Care Market
Sun Protection
Self Tan
After Sun
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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
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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
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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
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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
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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
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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:
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Attributes
Special Focus on most vulnerable areas
• Face• Neck• Shoulders • Hands
Special Children’s Care Products
Not women-centric - aimed at the entire family
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Special Offerings
Skin Type Diagnosis:
• Specific Variant • Usage according to Skin Type
VICHY Clinics:
• Consulting • Education about Skin Care
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Packaging
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PACKAGING
Simple sophisticated
package
Complete information
and educational
Easy to use and store
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TYPES OF PACKAGING
Creams
Gels
Sprays
Ointments
Lotions
Wax Sticks
Roll on
Wipes
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CREAMS AND LOTIONS
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GELS
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SPRAYS
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OINTMENTS
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WAX STICKS AND ROLL ON
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WIPES
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Pricing
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PRICING
Should be targeting middle class population
Competitive with respect to premium brands
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PRICING OBJECTIVE
Maximize current profit
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Reference pricing
Fair price
Competitor price
Usual discounted price
Quality as in indicator
Scarcity to signify price (not in this case)
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Pricing
Perceived value pricing
Promotional pricing
Psychological pricing
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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
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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
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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)
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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
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OTHERS
Fair & Lovely – Active Sun Block Lotion•SPF 25•TPI 70
Himalaya-Protective Sunscreen Lotion•SPF 15•100ml, 3.85 pounds
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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
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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
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Place
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Strategic plan
YEAR 1
PHASE 1
Products in salons and malls
YEAR 2
PHASE 2
Products in pharmacy and retails
Launch time frame
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OF MALLS AND MARKETS
92
TEA
M P
UR
E
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Distribution(Malls)
Manufacturing unit
Wholesalers
Malls
Customers
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WHERE BEAUTY MEETS FASHION
94
TEA
M P
UR
E
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Distribution(Salons)
Manufacturing Unit
Wholesaler
Direct sales team
Salons
Customers
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YOUR FRIENDLY NEIGHBOURHOOD CHEMIST &
RETAILERS
96
TEA
M P
UR
E
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Distribution Network (Pharmacy & Retailers)
MANUFACTURING UNIT
WHOLESELLER
RETAILER
CUSTOMER
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INTERNET BOOM
98
TEA
M P
UR
E
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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
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Promotion
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Media options for advertisement
Television
Newspapers
Magazines
Out of Home
Internet
Experimental
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Television channels
AXN
HBO
Star Plus
Star Movies
Star World
Zoom
MTV
Channel V
NDTV Goodtimes
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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
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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
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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
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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
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Newspapers: Broadsheets and Tabloids
Times of India
Indian Express
Asian Age
Mid-day
Mumbai Mirror
Rate: Rs.1200 to 1700 per square cm
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Magazines
Femina
Women’s Era
StarDust
CineBlitz
Cosmoplitan
Verve
Rs 550 to 750 per sq cm
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Internet
Weblogs
Podcasts
Banners
Websites
Pop-ups
Messengers
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Website
Vichy centre locater
Live chat with skin experts
Ready reckoner
Skin profiler
Sun FAQs
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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
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Promotion in malls
Skin diagnosis booths
Skin analysis
Detailed report
Suggestions for Vichy products
Promotional material
Quizzes
Free samples as gifts
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Experimental promotions
Vichy mobile vans (consumer education)
Kiosks at airports and gyms
Vichy kiosks inside spas and health clubs
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Perfect sun cover…for perfect skin
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Remain sun protected
where ever you go!
Use Capital Soliel
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Stop the sun…not the fun
Capital Soleil for kids
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Capital Soleil for the entire body
Protection for every part of you that faces the sun
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SWOT
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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
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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
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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
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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
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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
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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
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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
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Marketing Budget
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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
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Sales PromotionsFree Samples
Promotional expenses like quizzes and contests in malls, coupons, etc
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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.
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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
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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
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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
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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
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Thank You