SKIN CARE CATEGORY
IN ROMANIA
LUMENE – BUSINESS CASE
Agenda
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
Cosmetics & toiletries development in Romania
Skin care development in Romania
Distribution – skin care
SWOT Analysis – Lumene in Romania
Key conclusions
Lumene in Romania – Create, Build, Expand Model
Create Phase
Build Phase
Expand Phase
Create – Build – Expand
Next steps
Agenda
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
Cosmetics & toiletries development in Romania
Skin care development in Romania
Distribution – skin care
SWOT Analysis – Lumene in Romania
Key conclusions
Lumene in Romania – Create, Build, Expand Model
Create Phase
Build Phase
Expand Phase
Create – Build – Expand
Next steps
Cosmetics & toiletries development
in Romania
• Cosmetics and toiletries continued its upward trend, with sales
reaching Lei 1.2 billion (Euro 340 million) in 2006. The most
valuable sectors were the ones where premium and upper mass
products have a bigger share, such as fragrances, skin care and
colour cosmetics. However, there are basic hygiene products such
as bath and shower products and oral hygiene that are
underdeveloped due to low product awareness among rural areas
inhabitants, which accounts for almost 50% of the population.
• Consumer sophistication leads to increased value Over the past
few years, consumers became increasingly interested in their selfimage as well as in the quality of the products they purchase. The
increase in purchase power, which began in 2001, led to higher
disposable incomes and improved lifestyles. Consequently, the
products that have risen in popularity are upper-mass and more
specialised, as premium products are not sensitive to price in
general, having loyal customers.
• The most active consumers were women, for whom lifestyle
magazines set trends in terms of self image and promoting more
expensive products of higher quality.
Cosmetics & toiletries development
in Romania
• Multinationals dominate cosmetics and toiletries.
Multinational producers continued to account for the bulk
of cosmetics and toiletries sales in 2006, while only a
handful of local producers have worked their way up and
managed to face the fierce competition.
• The leading companies are Avon Cosmetics, Procter
& Gamble and L'Oreal, followed by smaller players as
Colgate-Palmolive, Unilever and Beiersdorf. The most
important advantage that multinationals have over local
producers is advertising. Having less financial resources,
local producers cannot afford spending money on
promotional campaigns. In addition to this, local
producers do not have the necessary means to innovate
as much as multinationals, in order to meet consumers'
specialised needs.
Cosmetics & toiletries development
in Romania
• Cosmetics and toiletries were amongst the most
advertised products in 2006, with Procter & Gamble
leading the way. The fierce competition between
multinationals lead to advertising wars between the
leaders and runners-up in every area of cosmetics and
toiletries. The most advertised product was shampoo
with more than eight brands heavily promoted by their
producers.
• Apart from TV, another important media channel is
lifestyle magazines, both for women and men,
promoting upper mass and premium products and
setting style and fashion trends. Almost each three
months, a new lifestyle magazine enters the market
targeting the more health and look conscious Romanian
consumers
Cosmetics & toiletries development
in Romania
• Market analysts expects cosmetics and toiletries
overall growth to increase by over 60% by 2010. The
solid growth will rely mainly on the improved
performance of sectors that were nascent until now, and
that have a relative low base, and of those hygiene
products such as shower products and toothpaste which
have low penetration in rural areas.
• Moreover, the increased concern of large urban
areas inhabitants with their appearance is expected to
lead to strong growth for sectors such as fragrances,
skin care, color cosmetics and men’s grooming products.
Cosmetics & toiletries development
in Romania
(million RON)
2003
2004
2005
2006
Skin care
140.3
172.1
205.6
233.2
Baby care
8.0
8.7
9.5
9.8
Bath & shower
104.4
106.4
113.9
115.2
Deodorants
91.0
99.2
107.8
114.8
Hair Care
103.6
115.8
133.2
142.4
Color cosmetics
89.5
114.8
142.5
161.7
Men’s grooming
28.6
34.0
39.5
43.0
Oral hygiene
61.7
66.6
73.4
77.6
Fragrances
108.2
155.8
220.0
291.6
Depilatories
4.7
5.0
5.5
5.5
Sun care
8.0
9.5
11.4
12.7
748.0
887.9
1062.3
1207.5
Cosmetics &
toiletries
Source: Euromonitor weighted from in-company information
Agenda
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
Cosmetics & toiletries development in Romania
Skin care development in Romania
Distribution – skin care
SWOT Analysis – Lumene in Romania
Key conclusions
Lumene in Romania – Create, Build, Expand Model
Create Phase
Build Phase
Expand Phase
Create – Build – Expand
Next steps
Skin care development in Romania
• Market is in continuous growth reaching Lei 230
million (Euro 65 million) sales in 2006. With an
impressive 66% growth across last 4 years, skin care is
one of the fastest developing categories in cosmetics &
toiletries.
• There are almost 16 million units sold per year in
Romania. This is equivalent of 0.8 units per capita or 1.5
units per urban consumer.
• Market is almost equally split between face cleaning
products (40% of market) and care products (60%).
Skin care development in Romania
• Market is dominated by 4 big players – L’Oreal, Avon
Cosmetics, Beiersdorf and local company Farmec which
account for 77% of total market.
• L’Oreal is the market leader in skin care with 2 brands –
L’Oreal (13% share, sales: RON 30 mil) and Garnier (10%
share, sales: RON 22 mil). L’Oreal is playing in the premium
segment of the market, while Garnier is the mainstream
brand.
• Second largest competitor is the local company Farmec
from Cluj-Napoca with 2 brands both playing in the economic
sector – Gerovital and Farmec, accounting for 20% share
(sales: RON: 45 mil). Gerovital is a famous skin care brand
created in 70s by the scientist Ana Aslan, marketed around
the world and famous for its anti-aging effects. After 1989,
due to lack of property rights legislation, dozens of producers
started to produce Gerovital and Aslavital, damaging the
brand. After 2000, Farmec took it over and it is sold also
outside Romania.
Skin care development in Romania
• The local branch of Avon is the third accounting for 18% of
total value sales in 2006. Avon Cosmetics success relies on
its policy of offering upper-medium, higher quality products at
affordable prices. Another strong point is their constant
product innovation, especially for skin and hair care, which
always comes to meet consumers' expectations. Notably,
12% of total Avon’s sales in Romania are in skin care, making
this category a key focus for the company. Avon's eternal
rival, Oriflame Cosmetics Is one a declining trend, as it is
more rigid to price reductions and promotional campaigns. In
addition to this, its monthly catalogues are accompanied by
very attractive promotions such as: 2 or 3 products for the
price of one, one product plus another one free and multilevel
promotions.
• Beiersdorf is playing the in the mainstream segment of
the market with Nivea (16% market share, sales: RON 37
mil).
Skin care development in Romania
• There is a large price difference between the
various pricing segments:
– Premium: L’Oreal – 13% of market – price index 100
– Mainstream: Garnier and Nivea – 26% of market –
price index 60 - 70
– Economy: Farmec, Gerovital, cheap imports – 40% of
market – price index 15 – 30
Avon has a mix of super-premium, premium and
mainstream products.
Super-premium segment is c 2 – 3% of the market.
Skin care development in Romania
• In all categories, including skin care, there is a
strong premiumisation of the Romanian
consumers who are switching their preferences
from cheap and basic to more expensive and
sophisticated products, providing a better
experience.
• Another important aspect is to respond to the
various and specialised needs of customers, by
constantly improving and expanding product
lines. Consumers will expect high quality
products that, besides natural ingredients, also
incorporate advanced technologies.
Agenda
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
Cosmetics & toiletries development in Romania
Skin care development in Romania
Distribution – skin care
SWOT Analysis – Lumene in Romania
Key conclusions
Lumene in Romania – Create, Build, Expand Model
Create Phase
Build Phase
Expand Phase
Create – Build – Expand
Next steps
Distribution – skin care
• The pharmacies/drugstores channel represent the most
important channel for skin care products, due to the
impressive expansion of the number of units more than 5,000.
However the fast growing pace of the number of units is
expected to slow down in the following years.
• The concept of the "health & beauty pharmacy" also
helped this channel gain in share as well as the retention
programs initiated by well known companies such as Sensiblu
or Help Net which currently have dozens of outlets nationwide
and loyalty programs.
• Pharmacies carried products at the upper end of the
mass market or premium, and tried to emphasise the
products' healthcare attributes.
• Pharmacies/drugstores were very significant for sales of
other products seen as more sophisticated products such
as baby care and sun care. This was due to the perception of
the products as belonging to the healthcare category.
Distribution – skin care
• In Romania, direct sales are the second the most
important channel of distribution, accounting for a fifth of
total value sales of skin care. Its share constantly increased
mainly due to the impressive development of the large
multinationals Avon Cosmetics and Oriflame Cosmetics.
• The main advantage of these companies is that they are
generally perceived as offering premium products at mass
prices. Their presence increased across the country due to
professional advice, sampling and sales on credit terms.
• Direct sales of skin care imported illegally from
neighboring countries developed over 2002-2003 due mainly
to low prices and the perception of making excellent deals
among consumers, however after Romania’s steps towards
EU integration, this issue started to decline.
Distribution – skin care
• Supermarkets/hypermarkets increased their share in
2006 up to almost 14% of total value sales. Their
number increased considerably during the review period
and is expected to continue following this upward trend
in the future, as there is an extremely high pace of
opening new supermarkets / hypermarkets.
• This type of outlet addresses all income groups,
offering from mass products to more sophisticated ones
at considerable lower prices than other distribution
channels.
Distribution – skin care
• Department stores and outdoor markets continue to decline as
the new formats are penetrating across the country even in smaller
towns and even into villages.
• They continue to be strong in rural and small urban areas, due
to their strong tradition on the market. Nevertheless, department
stores accounted for almost 10% of skin care sales, mostly because
they are widely spread across the country, with an increased
presence in rural areas where they were mainly identified with small
general stores, selling food, clothing, beverages, tobacco, cleaning
products, and cosmetics and toiletries.
• Outdoor markets are the traditional channel for the distribution of
illegal imports, counterfeit items and other cheap, locally
manufactured products. They are significant for sales of basic
products due mainly to the low margins and their perception of
carrying cheaper branded products, although it was not always true.
Distribution – skin care
Channel
% of total
Pharmacies / drugstores
30
Direct distribution
20
Supermarkets / hypermarkets
14
Department stores
10
Specialists
8
Outdoor markets
5
Others
13
Agenda
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
Cosmetics & toiletries development in Romania
Skin care development in Romania
Distribution – skin care
SWOT Analysis – Lumene in Romania
Key conclusions
Lumene in Romania – Create, Build, Expand Model
Create Phase
Build Phase
Expand Phase
Create – Build – Expand
Next steps
SWOT Analysis –
Lumene in Romania
• Strengths:
– Distinctive product – Northern origin
– Natural ingredients – strong substantiator
(extracts of Northern origin)
– Brand name (“lumina” in Romanian means
“light”)
SWOT Analysis –
Lumene in Romania
• Weaknesses:
– Unknown brand
– Few contacts with Finland and even Northern
countries
SWOT Analysis –
Lumene in Romania
• Opportunities:
– Market is premiumising
– High growth of market size
– Fast increase in the income of the Romanian
consumers
– Increase in modern trade formats – malls,
beauty stores, hypermarkets, etc
– Consumers more interested in how they look,
interested in natural products
SWOT Analysis –
Lumene in Romania
• Threats:
– Strong competition – 2 multi-nationals, 1 wellestablished local company and a direct distribution
international company control the market
– Extremely limited super-premium segment
– More and more “natural” products – Body Shop, Lush,
ayurvedic products, even established brands play the
natural card.
– More and more expensive media and marketing
activities
SWOT Analysis –
Lumene in Romania
Strenghts
Weaknesses
-Northern origin
-Natural ingredients
-Lumene brand name
-No brand awareness
-Few contacts with Finland
Opportunities
Threats
-Market premiumising
-High market growth
-Income increase
-Increase in modern trade formats
-Higher consumer interest
-Strong and diversified competition
-Limited super-premium segment
-Intense activity in “natural”
products
-Higher cost of doing business
Agenda
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
Cosmetics & toiletries development in Romania
Skin care development in Romania
Distribution – skin care
SWOT Analysis – Lumene in Romania
Key conclusions
Lumene in Romania – Create, Build, Expand Model
Create Phase
Build Phase
Expand Phase
Create – Build – Expand
Next steps
Key conclusions
• Lumene has a good chance in
successfully tackling the market, but:
– It needs to develop a different route to market;
– It needs to create a super-premium image;
– It needs to create a certain mystery and
hence a strong consumer desire;
– It needs to invest money
Agenda
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
Cosmetics & toiletries development in Romania
Skin care development in Romania
Distribution – skin care
SWOT Analysis – Lumene in Romania
Key conclusions
Lumene in Romania – Create, Build, Expand Model
Create Phase
Build Phase
Expand Phase
Create – Build – Expand
Next steps
% Target Consumers
Lumene in Romania –
Create, Build, Expand model
Brand Adoption Funnel
Expand
Build
Create
Aware Consider Trial Occasional Regular Most Often
Convert opinion leaders amongst
the core target audience to
establish the brand.
Create
Build
Broaden the reach of the brand to
gatekeepers still maintaining
strong control
Expand
Expand the brand to the full target
audience, potentially bringing in
additional groups as the brand
reaches national status.
Lumene in Romania –
Create, Build, Expand model
• Create
– Convert opinion leaders amongst the core
target audience to establish the brand.
– Create the interest and the desire around the
product, making it highly appealing.
– Control the brand appearance and all
consumers touch points to the product.
– Stimulate word-of-mouth through highly
targeted activities.
Lumene in Romania –
Create, Build, Expand model
• Build
– Broaden the reach of the brand to
gatekeepers still maintaining strong control.
– Reveal a bit of the mystery and exclusive
image by enlarging the group of the “chosen
ones”
– Move into more typical advertising means
– Enlarge distribution still to selected channels
Lumene in Romania –
Create, Build, Expand model
• Expand
– Expand the brand to the full target audience,
potentially bringing in additional target groups
as the brand reaches national status
– Widespread distribution in elite channels
– Full advertising / promotional activity
Lumene in Romania –
Create, Build, Expand model
• There is no specific time how long these 3
phases should last – it depends only how
fast the volume objective is achieved. It
can last 3 months or 1 year.
• Target group: young (25 – 35 years), high
income (above 800 euro), urban, active,
dynamic, interested in how they look,
health conscious.
Agenda
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
Cosmetics & toiletries development in Romania
Skin care development in Romania
Distribution – skin care
SWOT Analysis – Lumene in Romania
Key conclusions
Lumene in Romania – Create, Build, Expand Model
Create Phase
Build Phase
Expand Phase
Create – Build – Expand
Next steps
Create phase
• Objectives:
– Build brand awareness and trial among the
key core target group
– Volume: 0.5% of market – RON 1.3 mil
(380,000 EUR).
•
Key assumption: yearly market growth – 10%, 1 EUR = 3.4 RON
Create phase
• Distribution: only in own stores located in
the trendy malls of the nation.
• Product: only premium and super-premium
products from the portfolio.
• Promotion: PR activities, presentation of
product to KOL, in-store activities.
• Price: super-premium, at least + 20%
above L’Oreal.
Create phase
• Distribution: open 20 own shops / kiosks in the
most important malls of Romania. These stores
and not only selling outlets, but also image
builders for the brand. These stores need to
create the Lumene world and to strongly
communicate its benefits through all 5 senses –
light, nature, super-premium environment,
Northern cleanliness. They need to be superior
in look & feel vs. Body Shop or Lush.
Create phase
• Products – larger range than Lumene Skin
Care. Bring only the power SKUs which
can build strong turnover.
Create phase
• Promotion
– No price discounts
– Special trial promotions, one product supporting
another range (2 + 1 for free)
– Personal selling / sales assistant is an adviser, rather
than a sales assistant.
– PR activities targeting KOL in spas, beauty outlets.
– Sampling to KOL – in luxury coffee shops / clubs /
spas
– Internet contests – win products or a day at spa.
Create phase
• Pricing:
– Consistent super-premium price – minimum
20 – 25% above L’Oreal
Create phase
– Key costs
• 5 flagship stores (20 – 30 sq m): 75,000 set up
costs + 66,000 rental, personnel costs = 141,000
EUR
• 15 kiosks (6.25 sq m): 45,000 set up costs +
60,000 rental, personnel costs = 105,000 EUR
• Sampling – 10,000 EUR
• Promotions – 10,000 EUR
• Spa program – 25,000 EUR
• PR – 9,000 EUR
– TOTAL: 300,000 EUR
Agenda
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
Cosmetics & toiletries development in Romania
Skin care development in Romania
Distribution – skin care
SWOT Analysis – Lumene in Romania
Key conclusions
Lumene in Romania – Create, Build, Expand Model
Create Phase
Build Phase
Expand Phase
Create – Build – Expand
Next steps
Build phase
• Objectives:
– Build brand awareness and trial amongst
most of the target group.
– Volume: 1.5% of market – RON 4.2 mil (1.2
mil EUR).
Build phase
• Distribution: continue building the own stores /
kiosks network. Enter premium
pharmacy/drugstore and beauty chains.
• Product: only premium and super-premium
products from the portfolio.
• Promotion: PR activities, presentation of product
to KOL, in-store activities (own locations + other
locations).
• Price: super-premium, at least + 20% above
L’Oreal.
Build phase
• Distribution:
– Expand to 40 own shops / kiosks in the most
important malls of Romania.
– Get listed in pharmacy / drugstore and beauty
shops chains: Sensiblu, Help Net, Sephora,
Ina Center, etc. However, create Lumene own
corners – shelf windows
Build phase
• Products – Add SKUs to the portfolio.
Launch them in the own outlets and later
expand to the other outlets.
Build phase
• Promotion
– No price discounts
– Special trial promotions, one product supporting
another range (2 + 1 for free)
– Personal selling / sales assistant is an adviser, rather
than a sales assistant.
– PR activities targeting KOL in spas, beauty outlets.
– Sampling to KOL – in luxury coffee shops / clubs /
spas
– Internet advertising
– Promoters in the outside locations.
– Advertising in the locations’ own magazines.
Build phase
• Pricing:
– Consistent super-premium price – minimum
20 – 25% above L’Oreal
Build phase
– Key costs
• 10 flagship stores (20 – 30 sq m): 75,000 set up costs for the
new 5 stores + 132,000 rental, personnel costs = 207,000
EUR
• 30 kiosks (6.25 sq m): 45,000 set up costs for the new 15
kiosks + 120,000 rental, personnel costs = 165,000 EUR
• Sampling – 15,000 EUR
• Promotions – 50,000 EUR
• Spa program – 40,000 EUR
• PR – 10,000 EUR
• Listing + displays in 150 stores: 7500 euro for displays +
150,500 euro for co-marketing and listing (including
promoters) = 158,000 EUR
– TOTAL: 645,000 EUR
Build phase
• Objectives:
– Build brand awareness and trial among the
key core target group
– Volume: 1.5% of market – RON 4.2 mil (1.2
mil EUR).
Build phase
• Distribution: continue building the own stores /
kiosks network. Enter premium
pharmacy/drugstore and beauty chains.
• Product: only premium and super-premium
products from the portfolio.
• Promotion: PR activities, presentation of product
to KOL, in-store activities (own locations + other
locations).
• Price: super-premium, at least + 20% above
L’Oreal.
Build phase
• Distribution:
– Expand to 40 own shops / kiosks in the most
important malls of Romania.
– Get listed in pharmacy / drugstore and beauty
shops chains: Sensiblu, Help Net, Sephora,
Ina Center, etc. However, create Lumene own
corners – shelf windows
Build phase
• Products – Add SKUs to the portfolio.
Launch them in the own outlets and later
expand to the other outlets.
Build phase
• Promotion
– No price discounts
– Special trial promotions, one product supporting
another range (2 + 1 for free)
– Personal selling / sales assistant is an adviser, rather
than a sales assistant.
– PR activities targeting KOL in spas, beauty outlets.
– Sampling to KOL – in luxury coffee shops / clubs /
spas
– Internet advertising
– Promoters in the outside locations.
– Advertising in the locations’ own magazines.
Build phase
• Pricing:
– Consistent super-premium price – minimum
20 – 25% above L’Oreal
Build phase
– Key costs
• 10 flagship stores (20 – 30 sq m): 75,000 set up costs for the
new 5 stores + 132,000 rental, personnel costs = 207,000
EUR
• 30 kiosks (6.25 sq m): 45,000 set up costs for the new 15
kiosks + 120,000 rental, personnel costs = 165,000 EUR
• Sampling – 15,000 EUR
• Promotions – 15,000 EUR
• Spa program – 40,000 EUR
• PR – 10,000 EUR
• Listing + displays in 150 stores: 7500 euro for displays +
150,500 euro for co-marketing and listing (including
promoters) = 158,000 EUR
– TOTAL: 610,000 EUR
Agenda
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
Cosmetics & toiletries development in Romania
Skin care development in Romania
Distribution – skin care
SWOT Analysis – Lumene in Romania
Key conclusions
Lumene in Romania – Create, Build, Expand Model
Create Phase
Build Phase
Expand Phase
Create – Build – Expand
Next steps
Expand phase
• Objectives:
– Aggresively enter the market and go beyond
the target group
– Volume: 3% of market – RON 9.3 mil (2.7 mil
EUR).
Expand phase
• Distribution: keep the number of own stores /
kiosks network. Continue entering premium
pharmacy/drugstore and beauty chains, but also
enter the hypermarkets and supermarkets.
• Product: only premium and super-premium
products from the portfolio.
• Promotion: PR activities, presentation of product
to KOL, in-store activities (own locations + other
locations), beauty and lifestyle magazines.
• Price: super-premium, at least + 20% above
L’Oreal.
Expand phase
• Distribution:
– Keep the 40 own shops / kiosks in the most
important malls of Romania.
– Keep the listing and get new listings in
pharmacy / drugstore and beauty shops
chains. Enter hypermarkets / supermarkets:
Cora, Carrefour, Gima, Billa, etc. However,
create Lumene own corners – shelf windows
in smaller formats and own shelves in bigger
formats outlets.
Expand phase
• Products – Add SKUs to the portfolio.
Launch them in the own outlets and later
expand to the other outlets.
Expand phase
• Promotion
– No price discounts
– Special trial promotions, one product supporting another range
(2 + 1 for free)
– Personal selling / sales assistant is an adviser, rather than a
sales assistant.
– PR activities targeting KOL in spas, beauty outlets.
– Sampling to KOL – in luxury coffee shops / clubs / spas
– Internet advertising
– Promoters in the outside locations.
– Advertising in the locations’ own magazines.
– Advertising in lifestyle and beauty magazines: Cosmopolitan,
Glamour, Elle, Beau Monde.
Expand phase
• Pricing:
– Consistent super-premium price – minimum
20 – 25% above L’Oreal
Expand phase
– Key costs
• 10 flagship stores (20 – 30 sq m): 50,000 refurbishment costs +
132,000 rental, personnel costs = 187,000 EUR
• 30 kiosks (6.25 sq m): 30,000 refurbishment costs + 120,000 rental,
personnel costs = 150,000 EUR
• Sampling – 20,000 EUR
• Promotions – 150,000 EUR (including key accounts)
• Spa program – 50,000 EUR
• PR – 15,000 EUR
• Magazines advertising: 150,000 EUR
• Listing + displays in 300 small format stores: 15,000 euro for
displays + 300,000 euro for co-marketing and listing (including
promoters) = 315,000 EUR
• Listing + displays in 100 hypermarkets / supermarkets: 500,000
listing + permanent displays + 50,000 displays = 550,000 euro
– TOTAL: 1,587,000 EUR
Agenda
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
Cosmetics & toiletries development in Romania
Skin care development in Romania
Distribution – skin care
SWOT Analysis – Lumene in Romania
Key conclusions
Lumene in Romania – Create, Build, Expand Model
Create Phase
Build Phase
Expand Phase
Create – Build – Expand
Next steps
Create – Build - Expand
Create
Build
Expand
Distribution
5 flagship stores
15 kiosks
10 flagship stores
30 kiosks
150 pharmacies/beauty
10 flagship stores
30 kiosks
300 pharmacies/beauty
100 hyper / supermarkets
Product
Power SKUs – at least 3 – 4 ranges:
Skin, Men, Lipcare
Add SKUs
Add SKUs
Promotion
Trial promotions (2 + 1)
Personal selling
PR
Sampling
Internet
Trial promotions (2 + 1)
Personal selling
PR, Sampling, Internet
In-store promos
Advertising in outlets
magazines
Trial promotions (2 + 1)
Personal selling
PR, Sampling, Internet
In-store promos
Ads in outlets
magazines
Ads in lifestyle magazines
Price
20 – 25% above L’Oreal
20 – 25% above L’Oreal
20 – 25% above L’Oreal
Sales objective (skin
care only)
380,000 EUR
1.2 mil EUR
2.7 mil EUR
Marketing costs
300,000 EUR
610,000 EUR
1.6 mil EUR
Agenda
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
Cosmetics & toiletries development in Romania
Skin care development in Romania
Distribution – skin care
SWOT Analysis – Lumene in Romania
Key conclusions
Lumene in Romania – Create, Build, Expand Model
Create Phase
Build Phase
Expand Phase
Create – Build – Expand
Next steps
Next steps
• Portfolio in-depth analysis
– This analysis can highlight the optimum entry portfolio
– which lines / products / sizes should be the initial
offer. This will streamline the product line to the
“power SKUs” lineup required for the launch.
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Purchasing shares about key categories Lumene can enter
Analyse the market drivers for these categories
Qualitative research – product placement
Decide on portfolio
Financial analysis
Final & detailed marketing / operational plan
Next steps
• Brand positioning
– Lumene is an “umbrella” brand which needs
to communicate consistently the strongest
message.
• Insights generating qualitative research (preferably
with product placement)
• Alternative positionings development
• Final positioning chosen (quantitative or less
accurate, qualitative research)
• Finalise the positioning (bull’s eye, Big Idea,
Do’s/don’t’s)
Next steps
• Route to market / trade marketing strategy
– Designs the best route to market strategy –
fixes the winning distribution strategy and
creates the fundamentals for trade marketing
• Competitive analysis
• Specific plans (including locations) for Create –
Build – Expand
• Select locations
• Recommend visibility kits tailored per channel
• Detailed route to market budget
THANK YOU !