Category Management in a limited data environment: Category Management has been one of the most successful ECR tools over the past decade. At its core is what can be labour-intensive collation of accurate consumer information from many different data sources. But what if some data is missing? Learn how to maximize the benefits of Category Management in a limited data environment.

1. RAMSTORE & GILLETTE
Oral Care Category Management
Project
Anton Voichik
National Key Account Manager
Kirill Liseev
Oral Care Business Director

2. 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

3. Toothbrush Market Review

4. Global Market Share Leadership
34%
Value Shares:
 Manual - 22% (#1)
 Power - 48% (#1)
– Rechargeables 70% (#1)
– Battery 30% (#2)
 Refills - 73% (#1)

5. Oral-B: Clear Global Leader
Oral-B Global Market Share
Other 23%
Oral-B
J&J 34%
4%
SKB 7%
Colgate 17%
Unilever 6%
P&G 6%

6. Toothbrush Market Size - Russia
Market size has grown significantly over past years
MM units In 2003, category growth has slowed down
100 95.0000
91.6000
89.1000
90
80
70.8000
70
60
52.5000
50
44.5000
40
1999 2000 2001 2002 2003 2004

7. Toothbrush Market Segments - Russia
Low price segment is still the largest in volume
Premium segment is the clear contributor in value
92 MM toothbrushes 56 MM USD
Volume % Value %
21.5 27.7
49.9
56.3
22.2
22.4
Low Price Mid Price Premium Price

8. 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
24.4
21.9
20.5 21.4 21.7
19.4
18.8 19.8
19.6
17.2 17.9
%15.1 15.5
JF 2001 JA 2001 JF 2002 JA 2002 JF 2003 JA 2003 JF 2004
Low Price Mid Price Premium Price

9. Value Share Trends - Russia
Oral B continues to achieve record market share growth while
35
Colgate is leading with strong position
34.0000
30 31.4000
29.9000
26.8000
28.2000 27.6000 25.7000 25.6000
25.3000
25
25.1000 25.1000 23.3000 23.2000
22.5000
20.0000
20
18.6000
15 13.9000
12.1000
10 10.9000 10.9000
9.7000 9.5000 9.3000
8.8000
5
0
JF 01 JA 01 JF 02 JA 02 JF 03 JA 03 JF 04 Avg 01 Avg 02 Avg 03
Colgate Oral-B GSK
Avg.Oral-B share

10. Importance of KOBs
Total
Toothbrushes
Oral-B
JF 2004

11. 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
540 325.2986
109.7365
40
1999 2000 2001 2002 2003 2004

12. Manual Value Share Trends
Moscow Supermarkets
Strengthening Leading Position
45
43.2078
40
35
30.4482 32.6898 32.5789
30
26.5105
25.5374
25 25.8953 26.3559
23.7047
21.0229 24.5275
22.4001 19.6220
20
15
13.1711
10 11.2665 11.2045 11.7682
10.1602
7.9357 8.0937
5
5.1205
0
JF 01 JA 01 JF 02 JA 02 JF 03 JA 03 JF 04
Oral-B Colgate GSK
Avg.Oral-B share
Source: AC Nielsen Russia National

13. Power Value Share Trends
Moscow Supermarkets
7.5000000000%
7.4000015259%
7.2999992371%
7.2000007629%
7.1000022888%
7.0000000000%
Strengthening Leading Position 57.4110%
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%
4.0000000000% 52.2400%
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%
2.2000007629%
2.1000022888%
2.0000000000% 50.0500%
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%
8.2999992371%
8.2000007629%
8.1000022888%
8.0000000000% 46.2900%
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%
4.0000000000% 42.0100%
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%
0.4000015259%
0.2999992371%
0.2000007629%
0.1000022888%
0.0000000000% 40.3800% 37.9100%
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%
7.4000015259%
7.2999992371%
7.2000007629%
7.1000022888%
7.0000000000% 37.4200%
6.9000015259%
6.7999992371%
6.7000007629%
6.6000022888%
6.5000000000%
6.4000015259%
6.2999992371%
6.2000007629%
6.1000022888%
6.0000000000% 34.2400%
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%
1.6000003815%
1.5000000000%
1.3999996185%
1.3000011444%
1.2000007629%
1.1000003815%
1.0000000000% 31.3500% 31.6300%
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% 29.1700%
8.8999996185%
8.8000011444%
8.7000007629%
8.6000003815%
8.5000000000%
8.3999996185%
8.3000011444%
8.2000007629%
8.1000003815%
8.0000000000% 28.6200%
26.3100% 28.0700%
7.8999996185%
7.8000011444%
7.7000007629%
7.6000003815%
7.5000000000%
7.3999996185%
7.3000011444%
7.2000007629%
7.1000003815%
7.0000000000% 27.6800% 27.4000%
6.8999996185%
6.8000011444%
6.7000007629%
6.6000003815%
6.5000000000%
6.3999996185%
6.3000011444%
6.2000007629%
6.1000003815%
6.0000000000% 26.5500%
5.8999996185%
5.8000011444%
5.7000007629%
5.6000003815%
5.5000000000%
5.3999996185%
5.3000011444%
5.2000007629%
5.1000003815%
5.0000000000% 23.6200% 25.3100% 25
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%
2.8999996185%
2.8000011444%
2.7000007629%
2.6000003815%
2.5000000000%
2.3999996185%
2.3000011444%
2.2000007629%
2.1000003815%
2.0000000000% 22.7500% 23.0100% 22.4500%
1.8999996185%
1.8000011444%
1.7000007629%
1.6000003815%
1.5000000000%
1.3999996185%
1.3000011444%
1.2000007629%
1.1000003815%
1.0000000000% 21.4000% 21.0800% 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%
3.8000001907%
3.6999998093%
3.6000003815%
3.5000000000%
3.4000005722%
3.3000001907%
3.1999998093%
3.1000003815%
3.0000000000% 13.7200%
2.9000005722%
2.8000001907%
2.6999998093%
2.6000003815%
2.5000000000%
2.4000005722%
2.3000001907%
2.1999998093%
2.1000003815%
2.0000000000% 12
1.9000005722%
1.8000001907%
1.6999998093%
1.6000003815%
1.5000000000%
1.4000005722%
1.3000001907%
1.1999998093%
1.1000003815%
1.0000000000% 11.7400%
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%
7.5000000000%
7.4000000954%
7.3000001907%
7.2000002861%
7.0999999046%
7.0000000000% 7.1800% 7.6400%
6.9000000954%
6.8000001907%
6.7000002861%
6.5999999046%
6.5000000000%
6.4000000954%
6.3000001907%
6.2000002861%
6.0999999046%
6.0000000000% 6.1700%
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%
4.2000002861%
4.0999999046%
4.0000000000% 4.1800%
3.9000000954%
3.7999999523%
3.7000000477%
3.6000001431%
3.5000000000%
3.4000000954%
3.2999999523%
3.2000000477%
3.1000001431%
3.0000000000% 3.7900% 3.
2.9000000954%
2.7999999523%
2.7000000477%
2.6000001431%
2.5000000000%
2.4000000954%
2.2999999523%
2.2000000477%
2.0999999046%
2.0000000000%
1.8999999762%
1.8000000715%
1.7000000477%
1.6000000238%
1.5000000000%
1.3999999762%
1.2999999523%
1.2000000477%
1.1000000238%
1.0000000000% 1.8200%
0.8999999762%
0.8000000119%
0.6999999881%
0.6000000238%
0.5000000000%
0.4000000060%
0.2999999821%
0.1999999881%
0.0999999940%
0.0000000104% 0.0000%
SO 2002 ND 2002 JF 2003 MA 2003 MJ 2003 JA 2003 SO 2003 ND 2003 JF 2004 MA 2004

14. 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

15. RAMSTORE & GILLETTE
Oral Care Category Management
Anton Voichik
National Key Account Manager

16. 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

17. 4 Step Process
Planning And Alignment
Category Context
STEP 1
Opportunity Identification
STEP 2
STEP 3 Opportunity Delivery
STEP 4

18. The category management opportunity
and the need for data / insight
Oral care category in Potential category management
Russia: Category opportunities: levers:
 Category growth slowing At store level:
down
 Pruchase frequency  Space allocation
 Strong consumer upgrade
to premium products  Product assortment
 Nationally growth has been  Promotion mix
driven by distribution
 Shopper / consumer education  On-going education
expansion
at POS
 Oral-B has strong leading
position in manual and
power oral care
General research :
 Oral B has the expertise to  Footfall
grow the overall cake and
drive oral care category
 Shopper insight

19. Limited availability of the required data
Required data/insight to
understand impact of...: Possible sources of information:
Retail data at the store level: Limited data environment:
 Space allocation  Agencies: - Data not complete
- Data not ready
 Product assortment
 Promotion mix
 On-going education  Sales force: - Too time consuming
... on...:
Retailers: - Data not shared with
 Purchase frequency  suppliers
 Trade - up
 Penetration
 Footfall

20. 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:  Keyallocation JBP:
 Space
data to deliver
 Retailer: Data shared with  Product assortment
Gillette as preferred suppliers  Promotion mix
 On-going education

21. Oral Care Encompasses a Variety of Categories that
Help Consumers Maintain Healthy Mouths
Definit  The Oral Care occasion is the collection of
ion
categories that help consumers keep their
mouths healthy and beautiful
Categ
ories  Toothpaste
 Toothbrushes
 Interdental/Floss
 Mouthrinse
 Whitening

22. OC CATEGORY
Oral Care
Category
Chemical Physical
Paste Rinse Manual Power Interdental
Rechargeable Floss
Battery Specialist

23. Category Optimization - Oral Care
 Get the Category Segment Space
Right
 Get the Assortment Right
 Get the Promotional Mix Right

24. 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
0.70 Before
Recommended
0.50
0.30
0.20
0.10
0.05 0.03 0.05
0.03 0.02 0.02 0.03
Toothpaste Manual Power Kids Floss Rinse

25. 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

26. Category Growth Driver/Support Matrix
Key Brands Oral-B Colgate Reach Aquafresh Jordan Trisa
Dental Professional
Support
New Product
Development
Advertising/Media
Spending
Trade Promotional
Spending
Consumer Loyalty
SKU’s in Top 20

27. 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

28. 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

29. 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

30. Ramstore Oral Care Visibility Elements

31. Oral Care Planogram Recommendation
Based on the Ramstore sales data, store level
recommendations were prepared

32. CATMAN Implementation Steps
#3
Introduce lights to category to
attract the shoppers
#2
Introduce more Highlight the sub categories for
shopper POC & Kids
friendly layout
#1 and replace
Allocate hooks by
appropriate shelves for the
space for toothbrushes
quemical and
fisical (Increase
space for

33. AFTER CATMAN: Category Outlook

34. Ramstore Oral Care Category Performance
220 BEFORE AFTER
7%
Oral Care
200
Category
Sales Value 180
160
Jan03 Feb03 Mar03 Apr03 May03 Jun03 Jul03 Aug03 Sep03 Oct03 Nov03 Dec03 Jan04 Feb04 Mar04 Apr04 May04
90 8%
Toothbrush
Category
Sales Value 80
70
55
Jan03 Feb03 Mar03 Apr03 May03 Jun03 Jul03 Aug03 Sep03 Oct03 Nov03 ec03
D Jan04
Feb04 Apr04 May04
Mar04
20%
Oral-B 45
Sales Value
35
25
Jan03 Feb03 Mar03 Apr03 May03 Jun03 Jul03 Aug03 Sep03 Oct03 Nov03 ec03 Jan04Feb04
D Apr04
Mar04 May04

35. 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