RAMSTORE & GILLETTE
Oral Care Category Management
Project
Anton Voichik
National Key Account Manager
Kirill Liseev
Oral Care Business Director
Agenda

Oral Care Category Review
– Russia market review
– Supermarket channel dynamics

Oral Care Category Management Project
–
–
–
–
–

Joint Business Planning
Agreement to proceed
Analysis
Implementation
Review
Future Collaboration
Toothbrush Market Review
Global Market Share Leadership
34%
Value Shares:
 Manual - 22% (#1)
 Power - 48% (#1)
– Rechargeables 70% (#1)
– Battery 30% (#2)
 Refills - 73% (#1)
Oral-B: Clear Global Leader
Oral-B Global Market Share
Other 23%
Oral-B
34%
J&J
4%
SKB 7%
Unilever 6%
P&G 6%
Colgate 17%
Toothbrush Market Size - Russia
MM units
Market size has grown significantly over past years
In 2003, category growth has slowed down
100
95.0000
91.6000
89.1000
90
80
70.8000
70
60
50
52.5000
44.5000
40
1999
2000
2001
2002
2003
2004
Toothbrush Market Segments - Russia
Low price segment is still the largest in volume
Premium segment is the clear contributor in value
92 MM toothbrushes
Volume %
56 MM USD
Value %
21.5
22.2
Low Price
27.7
49.9
56.3
22.4
Mid Price
Premium Price
Toothbrush Segment Development
Continuous upgrading of market during past three years
67.7
66.7
61.9
60.6
57.6
54.2
49.4
28.9
17.2
%15.1
JF 2001
17.9
15.5
JA 2001
Low Price
19.4
18.8
JF 2002
19.8
19.6
JA 2002
Mid Price
21.9
20.5
JF 2003
24.4
21.4
JA 2003
Premium Price
21.7
JF 2004
Value Share Trends - Russia
35
Oral B continues to achieve record market share growth while
Colgate is leading with strong position
34.0000
31.4000
30
29.9000
28.2000
25
25.1000
25.1000
10
25.3000
25.7000
26.8000
25.6000
23.3000
22.5000
23.2000
20.0000
20
15
27.6000
18.6000
13.9000
12.1000
9.7000
8.8000
9.5000
10.9000
10.9000
9.3000
5
0
JF 01
JA 01
JF 02
JA 02
Colgate
Avg.Oral-B share
JF 03
JA 03
Oral-B
JF 04
GSK
Avg 01
Avg 02
Avg 03
Importance of KOBs
Total
Toothbrushes
Oral-B
JF 2004
Toothbrush Market Size - Moscow Supermarkets
1000 units Market size has grown significantly over past years
2540
2311.0000
2125.7959
2040
1540
1136.8990
1040
632.0581
540
40
325.2986
109.7365
1999
2000
2001
2002
2003
2004
Manual Value Share Trends
Moscow Supermarkets
Strengthening Leading Position
45
43.2078
40
35
30.4482
32.6898
30
26.5105
25
22.4001
20
25.8953
21.0229
26.3559
23.7047
32.5789
25.5374
24.5275
19.6220
15
13.1711
10
5
10.1602
7.9357
11.2665
11.2045
11.7682
JF 03
JA 03
JF 04
8.0937
5.1205
0
JF 01
JA 01
JF 02
Oral-B
Avg.Oral-B share
JA 02
Colgate
GSK
Source: AC Nielsen Russia National
Power Value Share Trends
Moscow Supermarkets
Strengthening Leading Position
57.4110%
7.5000000000%
7.4000015259%
7.2999992371%
7.2000007629%
7.1000022888%
7.0000000000%
6.9000015259%
6.7999992371%
6.7000007629%
6.6000022888%
6.5000000000%
6.4000015259%
6.2999992371%
6.2000007629%
6.1000022888%
6.0000000000%
5.9000015259%
5.7999992371%
5.7000007629%
5.6000022888%
5.5000000000%
5.4000015259%
5.2999992371%
5.2000007629%
5.1000022888%
5.0000000000%
4.9000015259%
4.7999992371%
4.7000007629%
4.6000022888%
4.5000000000%
4.4000015259%
52.2400%
4.2999992371%
4.2000007629%
4.1000022888%
4.0000000000%
3.9000015259%
3.7999992371%
3.7000007629%
3.6000022888%
3.5000000000%
3.4000015259%
3.2999992371%
3.2000007629%
3.1000022888%
50.9200%
3.0000000000%
2.9000015259%
2.7999992371%
2.7000007629%
2.6000022888%
2.5000000000%
2.4000015259%
2.2999992371%
50.0500%
2.2000007629%
2.1000022888%
2.0000000000%
1.9000015259%
1.7999992371%
1.7000007629%
1.6000022888%
1.5000000000%
1.4000015259%
1.2999992371%
1.2000007629%
1.1000022888%
1.0000000000%
0.9000015259%
0.7999992371%
0.7000007629%
0.6000022888%
0.5000000000%
0.4000015259%
0.2999992371%
0.2000007629%
0.1000022888%
0.0000000000%
9.9000015259%
9.7999992371%
9.7000007629%
9.6000022888%
9.5000000000%
9.4000015259%
9.2999992371%
9.2000007629%
9.1000022888%
9.0000000000%
8.9000015259%
8.7999992371%
8.7000007629%
8.6000022888%
8.5000000000%
8.4000015259%
46.2900%
8.2999992371%
8.2000007629%
8.1000022888%
8.0000000000%
7.9000015259%
7.7999992371%
7.7000007629%
7.6000022888%
7.5000000000%
7.4000015259%
7.2999992371%
7.2000007629%
7.1000022888%
7.0000000000%
6.9000015259%
6.7999992371%
6.7000007629%
6.6000022888%
6.5000000000%
6.4000015259%
6.2999992371%
6.2000007629%
6.1000022888%
6.0000000000%
5.9000015259%
5.7999992371%
5.7000007629%
5.6000022888%
5.5000000000%
5.4000015259%
5.2999992371%
5.2000007629%
5.1000022888%
5.0000000000%
4.9000015259%
4.7999992371%
4.7000007629%
4.6000022888%
4.5000000000%
4.4000015259%
4.2999992371%
4.2000007629%
4.1000022888%
42.0100%
4.0000000000%
3.9000015259%
3.7999992371%
3.7000007629%
3.6000022888%
3.5000000000%
3.4000015259%
3.2999992371%
3.2000007629%
3.1000022888%
3.0000000000%
2.9000015259%
2.7999992371%
2.7000007629%
2.6000022888%
2.5000000000%
2.4000015259%
2.2999992371%
2.2000007629%
2.1000022888%
2.0000000000%
1.9000015259%
1.7999992371%
1.7000007629%
1.6000022888%
1.5000000000%
1.4000015259%
1.2999992371%
1.2000007629%
1.1000022888%
1.0000000000%
0.9000015259%
0.7999992371%
0.7000007629%
0.6000022888%
0.5000000000%
40.3800%
0.4000015259%
0.2999992371%
0.2000007629%
0.1000022888%
37.9100%
0.0000000000%
9.9000015259%
9.7999992371%
9.7000007629%
9.6000022888%
9.5000000000%
9.4000015259%
9.2999992371%
9.2000007629%
9.1000022888%
9.0000000000%
8.9000015259%
8.7999992371%
8.7000007629%
8.6000022888%
8.5000000000%
8.4000015259%
8.2999992371%
8.2000007629%
8.1000022888%
8.0000000000%
7.9000015259%
7.7999992371%
7.7000007629%
7.6000022888%
7.5000000000%
37.4200%
7.4000015259%
7.2999992371%
7.2000007629%
7.1000022888%
7.0000000000%
6.9000015259%
6.7999992371%
6.7000007629%
6.6000022888%
6.5000000000%
6.4000015259%
34.2400%
6.2999992371%
6.2000007629%
6.1000022888%
6.0000000000%
5.9000015259%
5.7999992371%
5.7000007629%
5.6000022888%
5.5000000000%
5.4000015259%
5.2999992371%
5.2000007629%
5.1000022888%
5.0000000000%
4.9000015259%
4.7999992371%
4.7000007629%
4.6000022888%
4.5000000000%
4.4000015259%
4.2999992371%
4.2000007629%
4.1000022888%
4.0000000000%
3.9000015259%
3.7999992371%
3.7000007629%
3.6000022888%
3.5000000000%
3.4000015259%
3.2999992371%
3.2000007629%
3.1000022888%
3.0000000000%
2.9000015259%
2.7999992371%
2.7000007629%
2.6000022888%
2.5000000000%
2.4000015259%
2.2999992371%
2.2000007629%
2.1000022888%
2.0000000000%
1.8999996185%
1.8000011444%
1.7000007629%
31.6300%
1.6000003815%
1.5000000000%
1.3999996185%
1.3000011444%
31.3500%
1.2000007629%
1.1000003815%
1.0000000000%
0.8999996185%
0.8000011444%
0.7000007629%
0.6000003815%
0.5000000000%
0.3999996185%
0.3000011444%
0.2000007629%
0.1000003815%
0.0000000000%
9.8999996185%
9.8000011444%
9.7000007629%
9.6000003815%
9.5000000000%
9.3999996185%
9.3000011444%
9.2000007629%
29.1700%
9.1000003815%
9.0000000000%
8.8999996185%
8.8000011444%
8.7000007629%
8.6000003815%
28.6200%
8.5000000000%
8.3999996185%
26.3100%
8.3000011444%
8.2000007629%
28.0700%
8.1000003815%
8.0000000000%
7.8999996185%
7.8000011444%
27.6800%
7.7000007629%
7.6000003815%
7.5000000000%
7.3999996185%
27.4000%
7.3000011444%
7.2000007629%
7.1000003815%
7.0000000000%
6.8999996185%
6.8000011444%
6.7000007629%
26.5500%
6.6000003815%
6.5000000000%
6.3999996185%
6.3000011444%
6.2000007629%
6.1000003815%
6.0000000000%
5.8999996185%
23.6200%
5.8000011444%
5.7000007629%
5.6000003815%
5.5000000000%
25
5.3999996185%
5.3000011444%
25.3100%
5.2000007629%
5.1000003815%
5.0000000000%
4.8999996185%
4.8000011444%
4.7000007629%
4.6000003815%
4.5000000000%
4.3999996185%
4.3000011444%
4.2000007629%
4.1000003815%
4.0000000000%
3.8999996185%
3.8000011444%
3.7000007629%
3.6000003815%
3.5000000000%
3.3999996185%
3.3000011444%
3.2000007629%
3.1000003815%
3.0000000000%
23.0100%
2.8999996185%
2.8000011444%
22.7500%
2.7000007629%
2.6000003815%
22.4500%
2.5000000000%
2.3999996185%
2.3000011444%
2.2000007629%
2.1000003815%
2.0000000000%
1.8999996185%
1.8000011444%
1.7000007629%
1.6000003815%
1.5000000000%
1.3999996185%
21.4000%
1.3000011444%
1.2000007629%
21.0800%
1.1000003815%
1.0000000000%
21.0100%
0.8999996185%
0.8000011444%
0.7000007629%
0.6000003815%
0.5000000000%
0.3999996185%
0.3000011444%
0.2000007629%
0.1000003815%
0.0000000000%
9.8999996185%
9.8000011444%
9.7000007629%
9.6000003815%
9.5000000000%
9.3999996185%
9.3000011444%
9.2000007629%
9.1000003815%
9.0000000000%
8.8999996185%
8.8000011444%
8.7000007629%
8.6000003815%
8.5000000000%
8.3999996185%
8.3000011444%
8.2000007629%
8.1000003815%
8.0000000000%
7.8999996185%
7.8000011444%
7.7000007629%
7.6000003815%
7.5000000000%
7.3999996185%
7.3000011444%
7.2000007629%
7.1000003815%
7.0000000000%
6.8999996185%
6.8000011444%
6.7000007629%
6.6000003815%
6.5000000000%
6.3999996185%
6.3000011444%
6.2000007629%
6.1000003815%
6.0000000000%
5.9000005722%
5.8000001907%
5.6999998093%
5.6000003815%
5.5000000000%
5.4000005722%
5.3000001907%
5.1999998093%
5.1000003815%
5.0000000000%
4.9000005722%
4.8000001907%
4.6999998093%
4.6000003815%
4.5000000000%
4.4000005722%
4.3000001907%
4.1999998093%
4.1000003815%
4.0000000000%
3.9000005722%
13.7200%
3.8000001907%
3.6999998093%
3.6000003815%
3.5000000000%
3.4000005722%
3.3000001907%
3.1999998093%
3.1000003815%
3.0000000000%
2.9000005722%
12
2.8000001907%
2.6999998093%
2.6000003815%
2.5000000000%
2.4000005722%
2.3000001907%
2.1999998093%
2.1000003815%
2.0000000000%
1.9000005722%
1.8000001907%
1.6999998093%
11.7400%
1.6000003815%
1.5000000000%
1.4000005722%
1.3000001907%
1.1999998093%
1.1000003815%
1.0000000000%
0.9000005722%
0.8000001907%
0.6999998093%
0.6000003815%
0.5000000000%
0.4000005722%
0.3000001907%
0.1999998093%
0.1000003815%
0.0000000000%
9.9000005722%
9.8000001907%
9.6999998093%
9.6000003815%
9.5000000000%
9.4000005722%
9.3000001907%
9.1999998093%
9.1000003815%
9.0000000000%
8.9000005722%
8.8000001907%
8.6999998093%
8.6000003815%
8.5000000000%
8.4000005722%
8.3000001907%
8.1999998093%
8.1000003815%
8.0000000000%
8.0000%
7.9000000954%
7.8000001907%
7.7000002861%
7.5999999046%
7.6400%
7.5000000000%
7.4000000954%
7.3000001907%
7.2000002861%
7.1800%
7.0999999046%
7.0000000000%
6.9000000954%
6.8000001907%
6.7000002861%
6.5999999046%
6.5000000000%
6.4000000954%
6.3000001907%
6.1700%
6.2000002861%
6.0999999046%
6.0000000000%
5.9000000954%
5.8000001907%
5.7000002861%
5.5999999046%
5.5000000000%
5.4000000954%
5.3000001907%
5.2000002861%
5.0999999046%
5.0000000000%
4.9000000954%
4.8000001907%
4.7000002861%
4.5999999046%
4.5000000000%
4.4000000954%
4.3000001907%
4.1800%
4.2000002861%
4.0999999046%
4.0000000000%
3.9000000954%
3.7900%
3.7999999523%
3.7000000477%
3.6000001431%
3.
3.5000000000%
3.4000000954%
3.2999999523%
3.2000000477%
3.1000001431%
3.0000000000%
2.9000000954%
2.7999999523%
2.7000000477%
2.6000001431%
2.5000000000%
2.4000000954%
2.2999999523%
2.2000000477%
2.0999999046%
2.0000000000%
1.8999999762%
1.8000000715%
1.8200%
1.7000000477%
1.6000000238%
1.5000000000%
1.3999999762%
1.2999999523%
1.2000000477%
1.1000000238%
1.0000000000%
0.8999999762%
0.8000000119%
0.6999999881%
0.6000000238%
0.5000000000%
0.4000000060%
0.2999999821%
0.1999999881%
0.0999999940%
0.0000%
0.0000000104%
SO 2002
ND 2002
JF 2003
MA 2003
MJ 2003
JA 2003
SO 2003
ND 2003
JF 2004
MA 2004
Market Assessment Summary

Category growth slowing down

Strong consumer upgrade to premium products

Nationally growth has been driven by distribution
expansion

Oral-B has strong leading position in manual and power
oral care

Oral B has the expertise to grow the overall cake and drive
oral care category
RAMSTORE & GILLETTE
Oral Care Category Management
Anton Voichik
National Key Account Manager
Ramstore Oral Care Category Background
The category used to grow by double digit numbers YOY until
2003
– 57% Chemical
– 43% Physical
The growth was driven by the new stores openings and
performance of the power and Oral-B
– 92% Toothbrush
– 885% Power
– 241% Oral-B
Oral-B is leading in Toothbrush Category in Ramstore while it is #2
in total Russia
4 Step Process
Planning And Alignment
Category Context
STEP 1
STEP 2
STEP 3
STEP 4
Opportunity Identification
Opportunity Delivery
The category management opportunity
and the need for data / insight
Oral care category in
Russia:

Category opportunities:
Category growth slowing
down
At store level:
 Pruchase frequency

Strong consumer upgrade
to premium products

Nationally growth has been
driven by distribution
expansion

Oral-B has strong leading
position in manual and
power oral care

Oral B has the expertise to
grow the overall cake and
drive oral care category
Potential category management
levers:
 Space allocation
 Product assortment
 Promotion mix
 Shopper / consumer education
at POS
 Footfall
 On-going education
General research :
 Shopper insight
Limited availability of the required data
Required data/insight to
understand impact of...:
Possible sources of information:
Retail data at the store level:
 Space allocation
Limited data environment:
 Agencies:
 Product assortment
- Data not complete
- Data not ready
 Promotion mix
 On-going education
 Sales force:
- Too time consuming
... on...:
 Purchase frequency
 Trade - up
 Penetration
 Footfall

Retailers:
- Data not shared with
suppliers
Oral Care solutions 1: Joint Business Plan
Gillette Oral
JBP
Care
JBP strategy articulated around the expected category management key
growth drivers:
– Increase the turnover and profit via maximizing the frequency of purchase the trade-up
and penetration
– Shopper and consumer education via the on shelf communication
– Increase the footfall via the life style images
 Access to data:
 Retailer: Data shared with
Gillette as preferred suppliers
Key data to deliver JBP:

 Space allocation
 Product assortment
 Promotion mix
 On-going education
Oral Care Encompasses a Variety of Categories that
Help Consumers Maintain Healthy Mouths
Definit
ion

The Oral Care occasion is the collection of
categories that help consumers keep their
mouths healthy and beautiful
Categ
ories

Toothpaste

Toothbrushes

Interdental/Floss

Mouthrinse

Whitening
OC CATEGORY
Oral Care
Category
Physical
Chemical
Paste
Rinse
Manual
Power
Interdental
Rechargeable
Floss
Battery
Specialist
Category Optimization - Oral Care
 Get the Category Segment Space
Right
 Get the Assortment Right
 Get the Promotional Mix Right
Get the Category Segment Space Right
Opportunities Exist to Grow Category
Volume by Right-Sizing Key Sections
Based on Ramstore Data
Main Aisle Percent Space Allocation
Before
Recommended
0.70
0.50
0.30
0.20
0.10
0.03
Toothpaste
Manual
Power
0.05
0.02
Kids
0.03
0.02
Floss
0.05
0.03
Rinse
Get the Assortment Right
 Brand Rationalize Important Items
–
–
–
–
Consumers are confused by huge assortment
Limited Unique Selling Propositions (USP’s)
Lower price points devalue the category
Out-of-stocks on high volume brands force
shoppers to go other outlets
 Toothbrush Brands portfolio was Reviewed
Category Growth Driver/Support Matrix
Key Brands
Dental Professional
Support
New Product
Development
Advertising/Media
Spending
Trade Promotional
Spending
Consumer Loyalty
SKU’s in Top 20
Oral-B
Colgate
Reach
Aquafresh
Jordan
Trisa
Oral Care Strategic Partnership Agreement
• deal with the whole category
• more focus on physical (brushes + interdental), on
premium and value-added brushes
• include power
• have a separate dedicated Kids area
• a unique Ramstore design
Oral Care Category Vision
Ensure all products within the consumers
consideration set are merchandised together, with
appropriate call to action messages at the point of
purchase to facilitate the category strategies
3 Steps :
1. Attract shoppers to the aisle
– Paste adjacency is critical - forms total category in the eyes of the consumer
2. Complexity of the selection
– Consumers take 137 seconds to shop the physical oral care section vs an average of 53
seconds for other HBA categories
– 26% of physical oral care shoppers walk away from the aisle due to confusion.
3.Facilitate the trade up and frequiency
– Effective call to action messages
– Clear segmentation and use of the key brands for easy navigation
BEFORE CATMAN: Category Outlook
 Toothbrush category were underspaced
 Toothbrush fixture on hooks looked not too
attractive
 Display by brand
 No dedicated Kids and power section
 Toothpaste were overspaced
 No detailed communication at
the POP
 Price tags and price promo
communication only
Ramstore Oral Care Visibility Elements
Oral Care Planogram Recommendation
Based on the Ramstore sales data, store level
recommendations were prepared
CATMAN Implementation Steps
#1
Allocate
appropriate
space for
quemical and
fisical (Increase
space for
#2
Introduce more
shopper
friendly layout
and replace
hooks by
shelves for the
toothbrushes
#3
Introduce lights to category to
attract the shoppers
Highlight the sub categories for
POC & Kids
AFTER CATMAN: Category Outlook
Ramstore Oral Care Category Performance
BEFORE
220
AFTER
7%
Oral Care
200
Category
Sales Value 180
160
Jan03 Feb03 Mar03 Apr03 May03 Jun03
Toothbrush
Category
Sales Value
90
8%
80
70
55
Oral-B
Sales Value
Jul03 Aug03 Sep03 Oct03 Nov03 Dec03 Jan04 Feb04 Mar04 Apr04 May04
Jan03 Feb03 Mar03 Apr03
May03 Jun03
Jul03 Aug03 Sep03
Oct03
Nov03
Dec03
Jan04
Feb04Mar04Apr04 May04
20%
45
35
25
Jan03 Feb03 Mar03
Apr03
May03 Jun03
Jul03
Aug03 Sep03
Oct03
Nov03
Dec03 Jan04Feb04Mar04Apr04May04
Summary: Project Results & Learnings
• The appropriate space allocation, ballanced product
assortment, the right promotional mix and more pleasant
shopping experience can really grow the category value
• The toothpaste segment did not decline despite of the
reduction of the shelf space
• The maintenance of the agreed planograms and the on
shelf availability is vital
• The evaluation is the key for the future recommendations
• Understanding the magnitude of the category
management and the Oral care project success,
Ramenka and Gillette agreed to approach the Grooming
Category