Ana Teil-Gangl (SCG). How certification, testing and inspection can build con...
Bruno De Labar: How new premium categories can generate additional retailer turnover and profit
1. How new premium categories can generate additional retailer turnover and profit Reckitt Benckiser Russia February 2011
2. How new, premium categories build incremental turnover and profit Add incremental categories to existing big categories: Fabric Treatment Build completely new categories: Automatic Dishwashing Expand category consumption through new, wider usage Air Care 3 strategies for HH Cleaning categories
3. One purchase on top of Laundry Detergent increases the value of the shopper in 2 times Laundry Detergent* Only ( 9 washes) 60 * * х 3 = 180 RUR * Premium Laundry Detergent (Key Player #1) ** Average shelf price, RUR (AC Nielsen Russia, 2010 ) 180 RUR Laundry Detergent* + Vanish Liquid ( 9 washes) 320 RUR Laundry Detergent* + Vanish Powder ( 9 washes) 445 RUR Laundry Detergent Laundry Detergent Laundry Detergent 60 * * х 3 = 180 RUR 140 * * Laundry Detergent Laundry Detergent Laundry Detergent 60 * * х 3 = 180 RUR 265 * * Laundry Detergent Laundry Detergent Laundry Detergent x 1.8 x 2.5
4. One purchase on top of Laundry Detergent increases the value of the shopper in 2 times Laundry Detergent* Only ( 9 washes) 60 * * х 3 = 180 RUR * Premium Laundry Detergent (Key Player #1) ** Average shelf price, RUR (AC Nielsen Russia, 2010 ) 180 RUR Laundry Detergent* + Vanish Liquid ( 9 washes) 320 RUR Laundry Detergent* + Vanish Powder ( 9 washes) 445 RUR Laundry Detergent Laundry Detergent Laundry Detergent 60 * * х 3 = 180 RUR 140 * * Laundry Detergent Laundry Detergent Laundry Detergent 60 * * х 3 = 180 RUR 265 * * Laundry Detergent Laundry Detergent Laundry Detergent x 1.8 x 2.5
5. One purchase on top of Laundry Detergent increases the value of the shopper in 2 times Laundry Detergent* Only ( 9 washes) 60 * * х 3 = 180 RUR * Premium Laundry Detergent (Key Player #1) ** Average shelf price, RUR (AC Nielsen Russia, 2010 ) 180 RUR Laundry Detergent* + Vanish Liquid ( 9 washes) 320 RUR Laundry Detergent* + Vanish Powder ( 9 washes) 445 RUR Laundry Detergent Laundry Detergent Laundry Detergent 60 * * х 3 = 180 RUR 140 * * Laundry Detergent Laundry Detergent Laundry Detergent 60 * * х 3 = 180 RUR 265 * * Laundry Detergent Laundry Detergent Laundry Detergent x 1.8 x 2.5
6. The potential for this market in Russia: +7,0 bn RUR retail sales Washes per week 4.5 3 Consumption frequency ** 6 % of HH using category * Laundry detergents Fabric softeners Fabric Treatment Driving PENETRATION Increasing CONSUMPTION * Source : GFK Russia , 200 9 ** Source : TNS Russia, U&A 2009 2009 FT Sales 3,5 bn RUR (AC Nielsen Russia, Total National) More Homes More Washes Consumption x 2 (+ 3,5 bn) Penetration x 2 (+ 3,5 bn)
7. The potential for this market in Russia: +7,0 bn RUR retail sales Washes per week 4.5 3 Consumption frequency ** 6 % of HH using category * Laundry detergents Fabric softeners Fabric Treatment Driving PENETRATION Increasing CONSUMPTION * Source : GFK Russia , 200 9 ** Source : TNS Russia, U&A 2009 2009 FT Sales 3,5 bn RUR (AC Nielsen Russia, Total National) More Homes More Washes Consumption x 2 (+ 3,5 bn) Penetration x 2 (+ 3,5 bn)
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10. How new, premium categories build incremental turnover and profit Add incremental categories to existing big categories: Fabric Treatment Build completely new categories: Automatic Dishwashing Expand category consumption through new, wider usage Air Care 3 strategies for HH Cleaning categories
11. One purchase on top of ADW Detergent increases the value of the shopper in 3.5 times Hand dishwashing Only 71 * * х 3 = 213 RUR ** Average shelf price, RUR (AC Nielsen Russia, 2010 ) 213 RUR 807 RUR 1049 RUR Hand Dishwashing Liquid H.D. L. H.D.L. 807 RUR * * 1049 RUR * * ADW System ADW Multifunction x 3.7 x 4.9
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15. We create demand outside the Food Retail Trade – by stimulating sales of Dishwashing machines
18. How new, premium categories build incremental turnover and profit Add incremental categories to existing big categories: Fabric Treatment Build completely new categories: Automatic Dishwashing Expand category consumption through new, wider usage Air Care 3 strategies for HH Cleaning categories
19. Air Care category in Russia today is about fighting bad odors Source: Nielsen, FY2010
20. Air Care category tomorrow is bringing nice fragrance creating special atmosphere at home
21. Russia Air Care market vs France and UK HUGE POTENTIAL Source: Nielsen, FY2010 HUGE POTENTIAL 0,70 4 5,5 per capita 14% 29%
24. Air Care formats diversity to meet all consumer needs Luxury fragrance Automatic Spays Electrical (plug in) Aerosols of new generation 100% pure air Nature-Inspired Fragrance Candles
25. How new premium categories can generate additional retailer turnover and profit Reckitt Benckiser Russia February 2011
