Soins de Beauté

AYANDASGUPTA

DIVYAGUPTA

Microphones on Comb-teethCapture the hair’s soundwaves

to identify FRIZZINESS, DRYNESS

GyroscopeAnalyzes combingforce and speed Accelerometer

Counts strokes

Haptic FeedbackVibrating handle

guides combing technique

PROPOSED PRODUCTCONCEPT PROTOTYPE

PRES

ENT

Comb length ControllerRotate to select the

length of comb-teeth

SIDDHARTHMISHRA BEARD STYLER

SKIN CLEANSER

BEARD VOLUMIZERFOREST MINTFRAGRANCE

BEARD GLOSSSKIN FRESHENER

RollerTo apply the formula

on the beard and skinNOTEPlease view the PPTX in Presentation Mode to view embedded GIFs and VideoPlease refer to the slide notes for a detailed explanation of our proposed solution

Cricket Players20

1220

17

Actors Footballers

Entrepreneurs

Virat Kohli MS Dhoni Yuvraj Singh R. Jadeja Rohit Sharma

2017

2012

RyanGosling

RanveerSingh

LionelMessi

20172014

20172014

JackDorsey

There’s no denying that BEARD REVOLUTION is the IN THING

EXECUTIVE SUMMARYObjective: Disrupt Men’s Grooming by designing a new product line forL'Oréal Paris Men ExpertType of Solution: UNIVERSAL (Global brand with local knowledge), DIGITAL (Internet of Things), SUSTAINABLE (Water-free, Recycled packaging, Anti-deforestation campaign) ensuring BEAUTY FOR ALLProduct Line Designed: Beard CareCategories: Styling, Skincare, Deodorant/FragranceApproach: Gap Analyses Strategy: Blue Ocean Strategy (to capture theremaining 87% of market) Research Methodology: Primary (Interviews and Questionnaire), Secondary (Industry Reports, Annual Report, Resource Pack)Base Market for Primary Research: India (with high scope of scaling up)

Soins de Beauté

Market Analysis

Men’s Grooming market currently at Euro18.2 bn (2016), to grow to Euro 23.2 bn by 2020 (CAGR: 6.3%)

202020192018201720162015

23.221.8

20.519.3

18.217.1

Billion Euros

Global Trends

Out InSpornosexual

Lumbersexual

GrowthMen’s Toiletries includingbeard care: 6% (USD 3.6 bn)Men’s Shaving: 1.6% (USD 3 bn)Start-ups related to beardgrooming: 8 (2011), 42 (2014),58 (2015), 81 (2016)

Growth Markets

Key Findings 50% men want natural ingredient products42% want water-free and non-rinse products71% prefer ergonomic applicantsChief ingredients: Vitamins, minerals and antioxidants

Asia-Pacific: India, Pakistan, Thailand

L'Oréal aims to reduce carbon footprint by 60% by 2020

Eastern Europe: Russia, Turkey, UkraineWestern Europe: UK, GermanyLatin America: Argentina, Venezuela

Saudi Arabia: 20+%Egypt: 20+%Pakistan: 20+%India: 10+%Thailand: 10+%Russia: 10+%Turkey: 10+%Ukraine: 10+%Argentina: 10+%

Overall Cosmetics Market

L'Oréal Cosmetics Division

56% 40%Sales from New Markets

Sales from New Markets

Overall Men’s Grooming Market

L'Oréal Men Expert

33% 28%Sales from Skincare and Haircare

Sales from Skincare and Haircare

Competition Analysis

Men spend 24% more on beard grooming than last year68% men prefer multifunctional/cross-category products

L'Oréal Paris Men Expert Portfolio Analysis

Current Portfolio

SKINCAREHAIRCARE

SHOWER GELSDEODORANTSSTYLING

Gap found in L'Oréal Men Expert Portfolio: Beard CareL'Oréal Paris Men Expert - Major Franchises

Possible Gap in Product Ranges:Water-free, non-rinse products

Proposed Product Line for L'Oréal Men Expert

Ergonomically advanced applicants

50% of cosmetics sales will come from tropical countries by 2030Internet of Things (IOT) will impact cosmetics

Source: EUROMONITOR

Source: EUROMONITOR, DATAMONITORSource: L’OREAL 2015 ANNUAL REPORTand BRANDSTORM 2017 RESOURCE PACK

Focus on new markets

and facecare products

Environment AnalysisMen Expert - SWOT

New MarketsAsia-Pacific, Eastern Europe, Middle East and Africa, Latin America

Strength Weakness

Accessibility Simplicity

Less Aspirational

Distribution Limited Packaging

Advertising Not too masculine

Affordable Unisexual

Celebrity endorsed

Non eco-friendly

Male CentricLess

Sophisticated

High Quality Availability

Strengths Weaknesses

Opportunity Threats

Strong R&DDiverse product rangeBrand Awareness

Dependence onthird party retailUnderutilizationof face-care andgrowth markets

New marketsNew consumer trendsInnovative channels

Competitionfrom naturalproductsCustomer bar-gaining power

Water ScarcityBy 2030, water availabilitywill be just 60%By 2050, water demand will increase by 55%

Mid-East and Africa: Saudi Arabia, Egypt

Formula: Vitamin E, Beeswax, Petroleum Jelly,Fractionated Coconut Oil, Grapeseed Oil, Avocado Oil

Ergonomy: Handheld roller with flexi ball, screw drivenadjustment of comb-tooth lengthInnovation: IoT enabled comb-teeth which sense beardand skin conditions to recommend products on the appContribution to Sustainability: Water-free, rinse freeapplication, ethical recycled packaging involving nofossil fuel, manufactured using renewable energyCategories: Styling and Beard care (Primary), Skincare(Secondary), Deodorant/Fragrance (Tertiary)Product Benefits: Softens beard for styling, cleanses pores, anti-itchiness, emits mild but lasting fragranceDirection of Usage: Apply the roller against the beardcovered face, rotate the com-screw and gently run thecomb along your beard hair

Price: Euro 50 for 50 ml

7

1 2 3 8

765

9

4

MORE SOPHISTICATED

LESS SOPHISTICATED

EXPE

NSIV

E

AFFO

RDAB

LE

Perceptual Map

Deforestation1.5 acres of forest cut down every secondCauses 17% of annual global greenhouse gas emissions

SHAVING

Bear

d ca

re is

gro

wing

fa

ster

than

shav

ing

Countries in which L'Oréal has grown in 2015

Source: L’OREAL 2015 ANNUAL REPORTand BRANDSTORM 2017 RESOURCE PACK

18-25#RealMenGrow

What Men L'OréallyWant in Beard Care

Even rate of beard growth (56%), Getting the right style of beard (72%), Oil-Water balance inbeard (49%), Uniform facial hair (71%), Cleansing skin under beard (68%), Good beard smell (45%)

Soins de Beauté

Millennial Trends

PersonalizationPrice is key

Highrequirements

Demandingquality

SocialTech SavvyAmbitious

Millennial Profiles

Rohit Arora, Corporate Aspirant, IndiaI need a product that helps me style my beard such that it looks presentable at my workplace

L'Oréal Men Expert Channels

Channel Strategies

Digital Strategies

Advertisement and Promotion

Mobile Application

Timeline and Financials

Social Media and Internet Mobile AppPOS Innovation

Social Media and Internet

1.2 billionBeard Styling Views

2.1 million Average number of channel subscribers for top 15 YouTube beauty vloggers

3%

HUGE OPPORTUNITY FOR MAJOR BRANDS LIKE L’OREAL

STREAMING and VLOGSof grooming tutorials by famous YouTube grooming artists

WebsitesDevelop dedicated

country-specificmicrosites

Instead of: lorealparis.co.in/men-skincareSuggested: menexpert.lorealparis.co.in

Better SEO, SEM More information on products Help chat-bots on website E-commerce on website

Blogs

POS InnovationPut IoT enabled mask on the face and receive

skincare, beard care advice in retail outlets

Make posts that are not increasingly advertorialbut more relatable and inspirationalRely on influencers along with celebritiesRun social campaigns to unify the millennialcommunity #REALMENGROW

LEVERAGE VIDEO to post short grooming and health tips

31.8k followers | SM platform to BUILD RELATIONSHIPS

ADSof products on related videos in a storytelling manner that captures the attention of the viewer

Embedding e-commerce links on posts, Facebook StoreConduct contests where members will choose a muse

Sponsored lenses to add beardLinks of products during eventsChat services that provide customersdirect access to L'Oréal experts while shopping

521k likes | SM platform to PROMOTE BRAND

Suggestion: Diversify by focusing on EMOTION in addition to ads explaining product features.Be a GLOBAL BRAND with LOCAL CONNECTRecruit INFLUENCERS who are YOUNG ACHIEVERS as brand ambassadors based on regional influence such as

India Pakistan Turkey Russia Argentina

Virat Kohli

Fawad Khan

Burak Ozcivit

Danila Kozlovsky

Lionel Messi

Feature influencers in

powerful adverts such as

the one by Gerard Butler

Click to Play

Print ads to be primarily on LIFESTYLE MAGAZINES such as GQ, Esquire, Hombre and also on digital men’s lifestyle magazines like Primer, MenXP, AskMenSponsor sports award

shows in addition to films award shows (Golden

Globe) like Ballon D’or and global-local reality shows

like The Voice

1. Mass Retail2. Drugstores3. Cosmetic Stores4. Travel Retail5. E-Commerce6. Salons (Our new channel suggestion)

1 2 3

654

10 11 15 16

17

14

13

12

E-CommerceExclusive partnerships with national leaders like Flipkart (India), Alibaba (China), Ozon (Russia), Alshop (Middle East), Taretelo(Latin America) – allows higher margins3D Printing: Allowing instantaneous, logisticindependent e-commerce

Travel Retail – The Eighth ContinentPre-flight Experience: Airport bannersRedesign Stores - Dark theme like that of Men Expert at major airports – Mumbai, Doha, Beijing, Paris, Buenos AiresInflight Experience: Business Class - On board travel samples and advertisement in inflight magazinesEconomy – Lottery to win travel kitPost-flight Offering: Delivery at the gate of the destination airport or hotel of boardingAlso target cruises in the Gulf region

Smart RetailOmnichannel: Implement Click and CollectWeb in Store: Real time update of stock in a store with product ratings and reviews,faster check-n using wearables,Store locator and In-store navigatorValue added Service: Shazam enabled video adverts to promote loyalty programs

Cadoc Mido, Party Goer, EgyptI want to look more rugged yet sophisticated with more volume of beardJose Sainz, Beach Volleyball Player, ArgentinaI need a product that maintains the oil-water balance of my beard while I play.

Target: 33% of media spendingCurrently 25% - ANNUAL REPORT

Concerns to focus onAccuracy: Makeup Genius suffers from lack of accuracyDevice Compatibility: Makeup Genius incompatible with some Android devices – led to poor rating of 2.9 on Play Store

Theme: Integration ofexisting L'Oréal apps with innovative additions

iBeacon ReceiverFor offering abetter instore

experience

IoTFeedback readings from sensors of thecomb-teeth withrecommendationE-commerceAllows user toorder productsfrom the appKaleidoscopeDetects fashionthrough cameraand providesinformation tothe user

Trend UpdatesLatest blogs on

fashion andgrooming but

with more usercollaboration

Styling AppScans the user’s

face to apply hairand beard style

suggestions. Alsooffers clothing and

accessory tips

Current Ads: TOO PRODUCT FEATURE CENTRIC

Suggested Ad Concept (30 seconds)Clean shaven boys felling trees Bearded and groomed young men arrive and grow trees cameratakes aerial view of beard shaped forest cover#REALMENGROW The ad addresses environmentconcerns while depicting maturity of men over boys

of YouTube beauty viewsbelonging to major brands

Drugstores, Cosmetic Stores and SalonsValue added services like personal care tips, cosmetic consultancy, massages.

16.5k followers

11k subscribers

Snapchat

Y0

Y1

Y2

Y3

Y4

Y5

Launch productline in growth markets

Provide valueadded services indeveloped markets

Launch productline in marketswith sub 10%growth

Introducenewer productsas per specificmarket needs

Pilot futuristictechnology like 3Dprinting of products

Recruit newinfluencers.Recreate adstrategy

Revenue (Year 1)

Operating Profit

EPS Contribution

ROI (Year 1)Euro 122 mn

20.76%Euro 0.045

Refer to the embeddedspreadsheet for details

26.19%

Product Financials

Annexure