ponds institute gbt

POND´S BEAUTY CENTRESPOND´S BEAUTY CENTRES

PBC´s Update August the 23rd, 2004

Pond´s Beauty Center UpdateAugust the 23rd, 2004



BETTER LOCATION & SOCIO DEMOGRAPHIC PARAMETERSBETTER LOCATION & SOCIO DEMOGRAPHIC PARAMETERS

October 2002, Unilever Ventures Funds took financial responsibility on PBC´s with an operational framework agreed.

PBC1 “PARQUE DE LAS AVENIDAS” ( upper - middle class with mid population). Mainly residential area but also with some office buildings

PBC2Padilla 42. B. Salamanca (upper class with high population)

Mainly residential area but also some office buildings .

PBC3Bolivia 24. B. Chamartin (upper class with very high population)

Mainly residential area.

October 2000

February 2003

April 2003

Householdssurronding areas

3.816

5.786

8.610

1.- PBC´s Update



SPACE OPTIMIZATION & COST REDUCTIONSPACE OPTIMIZATION & COST REDUCTION

Area Nº Cabins

PBC1: P. Avenidas 235 sqm 8

PBC 2: Padilla 210 sqm 9

PBC3: Bolivia 123 sqm 6

Monthly rent €

4.173

3.087

2.031

Rent / sqm €

17,8

14,7

16.5

Start-up K €

215

245

171

1.- PBC´s Update



IMPROVEMENTS:IMPROVEMENTS:

. More “cosmetic”. More “cosmetic”

. Brand reinforcement. Brand reinforcement

. Better merchandising. Better merchandising

1.- PBC´s Update



1.- PBC´s UpdateOperational Framework

• Lever Fabergé objective:

to develop Pond´s as the leading skincare brand in Spain.

• UVF objective:

to maximize business value in 5 years time.

• PBC´s should be an independent limited company owned by Unilever Spain.

• UVF is responsible for busines accountability & staff.

•Supply agreement. NPS-20%. Service agreemnt 4%.



1.- PBC´s Update

Operational Framework

• PBC´S Gobernance Board (meeting / 6-8 weeks):

• UVF Representative A. Lane / B. Steward

• Board Member of L.F. Spain Miguel Angel Rivera

• PBC´s Responsible Javier Valiente

• Experienced Retailer Consultant Lluis Martinez



1.- PBC´s Update

• Additional Support:

• Ad-hoc co-operation with a Beauty Expert

• Special agreement with Beauticians School



Plan as for a brand.

- 2 “seasons”

- 3 main working areas

COMMUNICATION• Direct & appealing

• PR activities

NEW TREATMENTS

+

NEW PRODUCTS

PROMOTION & ACTIVITIES

Traffic & Loyalty

1.- PBC´s Update



1.- Financial Review & Main Indicators



2.- Financial Review July AC04



Product Sales Evolution (value)

54%54%

37%37%

7%7%

CUM Jul 04CUM Jul 04

2%2%



PR

OD

UC

TO

S E

XC

LU

SIV

OS

PR

OD

UC

TO

S M

AS

S M

AR

KE

T

5%5%

12%12%14%14%10%10%

7%7%

1%1%

CUM Jul 04CUM Jul 04

5%5%



PR

OD

UC

TO

S E

XC

LU

SIV

OS

11%11%

19%19%6%6%

CUM Jul 04CUM Jul 041%1%



Perfil marcas (P18)

Pond´s brand image


PBC´s Update August the 23rd, 2004(Respuesta espontánea. Datos en %)

Uso de productos de cuidado facial (P2)

Marca más frecuente

Base: 100

GAMA ALTA

FARMACIA

GENERAL

Before opening

PBC´s users

Facial care product usage (most frequent brand)



(Respuesta espontánea. Datos en %)

Uso de productos de cuidado facial (P2)

Total

Base: 100

GAMA ALTA

FARMACIA

GENERAL

2

3

4

10

2

2

3

35

2

4

5

6

7

12

13

2

3

3

3

4

3

6

11

20

2

1

9

13

0

0

0

10

25

22

16

10

0 10 20 30 40 50

Yves Rocher

Diadermine

L'Oreal

Nivea

Total Results

Tensifirm

Equilibran T

Pond's

Biotherm

Clarins

Christian Dior

Helena Rubinstein

Estee Lauder

Clinique

Lancôme

Vichy

Roc

Avene

Belcils

Germinal

Before opening

PBC´s users

Facial care product usage (Sometimes)



Pond´s Institute in San Chinarro Effect in Sales

Aug. extrapolated data from 3 first wks.

Drop caused by holidays in Madrid.

P.InstituteSales season

+40% increase from avg. sales per month since opening. (Nov. not included)+40% increase from previous month (april)



3.- Way Forward 1st Step

Agreed:

- Open PBC 4 & 5 in Madrid

- Open PBC 6 in Zaragoza

1.- PBC´s Roll out

- Focus on own centres (this is what we know at this moment)

- Roll out (limited area) to become “the reference” (Madrid)

- … but we need to know how to manage centres outside Madrid.



Business Model Scenario

Considering the agreed assumptions…

Own Centres Franchise

1.- IRR single site: 39% 23%

2.- Payback period: 2.61 years 3.98 years

3.- Cash requirement 3.6 m Euro 1.0 m Euro

4.- Exit value 2008 21.4 m Euro 8.7 m Euro



3.- Roll out decision Potential number of centres

1. Current PBC´s customer profile



3.- Roll out decision Potential number of centres

3. Cross check with population



2.- Professional Product Development

- Considering the range of products currently being sold at PBC´s build the structure based on products that can be seen by our customers as complementary to our beauty centre treatments (pre / post).

- Products with high added value perception with high profitability (high price)

- Pond´s Pofessional Range umbrella.




5.- Product Development

Pond´s Beauty Centres. Professional Range Structure.




Priority level 1 Priority level 2 Priority level 3





S u n R an ge

C le an s ing

& F orm at

P e r S kin type(o ily, d ry,n o rm a l,

se n s it ive )

E sse n tia lC a re

C o re A n ti-a ge2 5 - 45

In te ns ive C a re

M a tu re S k in4 5 +

T o p P e rfo rm a n ce

E ye C o n to ur1 5 m l m ax

N ig h t C re amJa r 50 m l

D a y C re amJa r 50 m l

S e rum

M a sk-F irm in g- M o s it

- P o re re d .

A n ti-S p ot

A m po u le s /B lis te rsT e rs -up

C a p su les

P re / P os t T re a tm e ntS p e c if ic

1 o r 2 sp ec ia list(se ru m ,

a m p o u le ,ca p su le s)

E ye C o n to ur1 5 m l m ax

N ig h t C re amJa r 50 m l

D a y C re amJa r 50 m l

S p e cif ic R a n geB o to x, A n ti-s tre ss

A n ti-a ge

T re a tm e nt

F a c ia l R a n ge





3.- Taking advance on PBC´s Customers

- Continue using PBC´s customers both for new product test and insight generation / research.

- Train beauticien on “new insights capture”.


ponds institute gbt

Documents