1. A perspective of the Indian Skin Care market & A positioning and entry strategy for the Brand Brand Therapist Mumbai 15 Feb. 2007

2. The Roadmap 3. MAPPING THE BRANDS 2. CONSUMER SEGMENTATION 1. TRENDS AND THE CONTEXTUAL FRAMEWORK A opportunities map Entry strategy for our brands: Broad Brand concepts Idea generation for product ideas 4.

3. 1. TRENDS AND THE CONTEXTUAL FRAMEWORK Skinsplosion

4. CATEGORY TRENDS Skincare comes of Age… and it is not just about anti wrinkle cream!

7. Marketer maturity… but how mature is the buyer / consumer? A Snapshot of the statistics…

9. All India Urban Skincare 2004, 2005 Large Volumes Growing, Gaining importance Negligible, Anti-ageing gaining importance Source: A.C.Nielsen 2004 Growing, Gaining importance Size 2005 : $292 mn., 11% growth 100% 292 100% 263 TOTAL 4% 10 2% 5 Others 7.5% 22 7% 18 Total Cleansing 1% 3 0% 1 Face scrubs 0.5% 1 1% 1 Astringents 2% 6 2% 5 Face pack/masks 1% 3 1% 3 Cleansing milk 3% 9 3% 8 Face wash 6% 17 5% 15 Total Specific care 1.5% 4 1% 3 Anti-ageing 4% 12 4% 11 Anti-marks 0.5% 1 0% 1 Under eye gel 5% 15 6% 14 Total Cosmetic creams 3.5% 10.5 4% 10 Bleach 1.5% 4.5 2% 4 Foundation 27% 79 30% 78 Total Moisturizing creams 0.5% 2 1% 2 Calamines 4% 11.5 5% 13 Vanishing creams 4.5% 13 5% 12 Petroleum Jelly 9% 26 10% 26 Cold creams 9% 26.5 9% 24 Moisturizing creams 3.5% 10 3% 8 Sunscreen Lotion 8% 24 8% 22 Antiseptic creams 39% 115 39% 103 Fairness creams 2005 2004 % disp Value ($ mn.) % disp Value ($ mn.) SEGMENTS

10. Three emerging segments Advanced fairness through solutions on blemishes, spots, dark circles etc Sun protection Through sun blocs & sunscreen lotions Anti ageing Delivered through advanced solutions

13. A Context Analysis Observations from – DDB Signbanks What is the press writing A net search Market visits and scan Direct selling consultant visits Chats with experts The Contextual Signs

14. A look at the emergence of Health, Science & Substance in the skincare category

17. The Indian Metrosexual Has Arrived [TIMES NEWS NETWORK ] Boys and men, moisturise your masculinity. The urban man is going all out to exhibit his softer, more feminine side. He's shopping for glow-packs, face-scrubs, jewellery, embroidered kurtis and sarongs. And he's happy changing nappies and cooking pasta for his wife. The metrosexual man has arrived in India . And he's this season's pin-up: soft, stylish and sexy. Here's how machoism is getting manicured. Kunal Sehgal, 17, uses an Everyouth glow-pack everyday, gets his body waxed and tattooed, and has a weekend shopping bud-get of Rs 2,500. For him, facials aren't an exercise in narcissism. Akash Anand, 28, loves to shop, lifts weights every morning, is devoted to his wife and wears funky pinks hand-picked from Selfridges. "I get my blackheads removed and an aroma facial done every month. Once I got my chest waxed for a modelling assignment," says Anand, team manager, Birla Sunlife Distributors. David Beckham, the ultimate metrosexual icon who has defied manly expectations like what a man should wear and how they should behave, is rewriting the rules for the Indian man as well. "The ratio of women and men coming to my beauty salons is 50:50. That's why I launched an exclusive men's salon and a Manpower range," says Shahnaz Husain. "We have an exclusive package for grooms — concealing make-up, bleach, facial," says Vandana Luthra. Kaya gets about 35% male visitors

19. Beauty and Health meet half way up

25. Ojus OJUS -- Sanskrit for inner vitality -- is an ayurvedic health centre situated on the outskirts of Bangalore. All the traditional treatments are available, including oil massages and herbal steam baths with therapies for ailments like rheumatism, acidity, migraine, insomnia and dandruff. The added bonus is an ayurvedic beauty -care package . There are fixed residential programmes, but outsiders have plenty to choose from. Ananda Spread over 100 acres in Narendra Nagar in Uttar Pradesh's Tehri-Garhwal district, Ananda - In the Himalayas is a luxury spa housed in the palace estate of the former Maharaja of Tehri - Garhwal. Facilities at the 80 - room resort near Rishikesh include ayurvedic programmes, yoga, meditation sessions, health foods, Thai and Swedish massages, aroma and hydrotherapy among other things. Those interested can also have a go mountain biking, trekking, jogging, tennis and squash. For details call at (001) 6899999.e-mail: [email_address]

37. Dimensions for The delivery of Beauty Fashion Fairness Anti ageing Male specific Health Fitness Weight loss Wellness Body Aromatherapy Ayurveda Cosmetology Dermaceuticals Biotechnology Homeopathy Sun Protection

38. The dimensions of health and beauty far more complex and holistic body – mind – soul

39. BEAUTY OUTER DRIVEN PHYSICAL APPEARANCE Outward things seen INNER DRIVEN ATTITUDE The Way one thinks INNER DRIVEN APPROACH TO LIFE The physical things one does 1 2 3 Look at Beauty at three levels

42. The Roadmap USAGE NEEDS 3. MAPPING THE BRANDS 2. CONSUMER SEGMENTATION 1. TRENDS AND THE CONTEXTUAL FRAMEWORK A opportunities map Entry strategy for our brands: Broad Brand concepts Idea generation for product ideas 4.

43. 2.Segmenting Consumers by attitude and mindset

44. Attitudes to Beauty and Grooming (Indian Women SEC A B)

45. The Indian Consumer has evolved The market is tiered with different segments based on their needs - Outward and Inward

46. Psychographic segmentation of the Indian market Source: Psnap, NRS FGDS across Mumbai, Delhi, B’lore, Cal Media scans and context analysis

49. Our Prospective consumer: Signs that she is changing Physical object Person with an identity-mind, body, soul, needs, wants From To Shift from socio-centric to ego-centric values Submission, controlled by others Independence, Responsibility Restrictions, obeying Self willed freedom, being looked up to Homebound, simplicity and frugality Wider world prospects, Glamour, fame Receiving money Earning money Face oriented (appearance) Body, hair and skin oriented

50. Emergence of a new pluralistic persona Power Control Authority Strength Domination Masculine Archetype Nurturance Compliance Security Caring Comfort Feminine Archetype Harmony Achievement Goal orientation Ambition Warmth Pluralistic Archetype yet Independent Courageous Strong willed Powerful in thoughts & ability to resolve conflicts Achievement driven Focussed on family well-being Not rebellious Not power/control driven Not aggressive Not self-centered yet yet yet yet

54. The Roadmap 3. MAPPING THE BRANDS 2. CONSUMER SEGMENTATION 1. TRENDS AND THE CONTEXTUAL FRAMEWORK A opportunities map Entry strategy for our brands: Broad Brand concepts Idea generation for product ideas 4.

55. 3. MAPPING THE BRANDS Finding the opportunity for Sebamed

56. Mapping the market Price Appeal Mapping Mind-state Mapping

57. A analysis and understanding of the market Matrix A R O M A T H E R A P H y H O M E O P A T H Y Garnier Vichy Neutrogena SEBAMED PRICE Mild Gentle Pears J&J Dove Beauty Anti ageing Acne Control Fairness Health/ Multi- Purpose Ayurveda Botanicals Naturals/ Herbals Scientific/ Technology/Cosmetology APPEAL Safi FAL Fairever Fairglow Himani Gold Boro Natural Vicco- Tumeric Crack Eraser No Marks FAL Ayurveda Fairever Mantra Ayur Emami- Beauty Secrets Mass Lakme Ponds Nivea Vaseline Anne French Charmis Clean n Clear Clearasil FEM Green Leaf (Aloe+VitE) Himalaya Vatika Everyuth Mid – Mass Avon Revlon Lakme (Premium) Oriflame VLCC Naturals VLCC the clinic Mass Premium Aviance Oil of Olay FAL Radiance Garnier Light Shahnaaz Hussain Biotique Super Premium Body Shop Dior Shisiedo Clarins Elizabeth Arden L’Oreal Amway Kaya Prestige

58. Natural Scientific Health Cosmetic Garnier Lakme Ponds FAL Vichy Neutrogena L’Oreal Biotique Lotus Herbals Shahnaaz Herbals Himalaya Nivea EverYuth Oriflame SEBA MED Pears Dove

59. A look at the key image dimensions of the competition Key primary competitors: Vichy Neutrogena The competition in the periphery, but the major players: Garnier L’Oreal Ponds

61. Vichy Fairness Bi-White Print Vichy Sunscreen range Print Vichy Normaderm Print

66. Setting the Direction for the Brand The Positioning Opportunities

67. The Brand Promise The proposition / Brand Idea Human truth/Insight What role will you play in my life How will you connect with me Product The rational benefit & differentiator Brand Value Why will I trust you

74. Positioning Routes

75. Route 1 Rooted in a strong category and consumer insight : Too many brands, too many complex routines …what should we buy/use

76. The age and skin-state relationship Middle Age Adolescence Regression (Nourishment) Old Age Security (Health) CARE SOLUTIONS ENHANCEMENT MAINTENANCE Attractiveness Infancy Youth

78. The Brand Promise Complexity of science to Simplify Life Human truth/Insight High clutter & confusion- Too many brands, too many complicated routines Product The rational benefit & Differentiator: 5.5pH Brand Value Depth of science Simplicity of application Friendly approachable

83. The Device: Skin type age chart No stage would have more than a simple three step routine FOR BABY 50+ 40+ 30+ Young adult Teenager Combination Oily Dry Normal Age /Skin type

86. Route 2 Capitalize on the fact that we are a scientific, tested, medically crafted brand – thus to the consumer SAFE

87. Translating safety to a consumer value & skin benefit Human truth/Insight Wonder if my skin is safe anywhere these days-everything affects ir Product The rational benefit & Differentiator: 5.5pH that maintains your skin’s age Brand Value Innocence Gentle Pure Baby like skin through life

94. Route 3 Taking the value of being genuine and truly rooted in science – translate it to a consumer value

95. Translating safety to a consumer value & skin benefit Be true to your skin Human truth/Insight Who and what can I really trust these days Product The rational benefit & Differentiator: 5.5pH true to your skin’s chemistry Brand Value Real Scientific Genuine

101. Route 4 Consumers today lead active lifestyles & don’t want to slow down in any arena of life – physical and mental Clear need for wellness and for healthy skin that is the best make up

102. Translating safety to a consumer value & skin benefit Skin that’s active 24x7 SKINERGY Human truth/Insight I don’t want to slow down – in any way Product The rational benefit & Differentiator: 5.5pH keeps skin active-doing what it supposed to do 24x7 Brand Value Active Sporty Outdoorsy