BRANDSTORM  GAME  :  COSMETIC  PRODUCTS  FOR  MEN

PRESENTS

DEMARTIN LAURA MERTENS TAMARA NICAISE JULIEPROST CAROLINE VAN STEENKISTE ISABELLE

BEHAVIORS OF THE ACTORS OF THE MARKETFATHI TLATLI MANOELLA WILBAUT MASTER 1

3. COMPANY VALUES8. MARKETING MIX PROGRAMS

PESTE

P➡ ISO norms on the components

➡ ISO norms on the packaging and labelling

➡ Reach legislation

E➡ French market: a forerunner in the cosmetic market.

➡ The consumer price index for beauty products sector ↑ 112.1millions ➪113.4millions

➡ Boom of the men’s cosmetic market ➪ 15% of the total sales of care products.

S➡ Profound social changes in the 21st century

➡ Cult of youth affecting both women and men

➡ Zen trend with development of spas, care and beauty institutes

➡ Emergence of metro-sexuality and über-sexuality concept

T ➡ Breakthroughs in chemical substances for the particular structure of men’s skin

E ➡ The pollution of the air an opportunity for the cosmetic industry to offer to the skin the middles to !ght against each “polluting” attack.

1. MARKET HIGHLIGHTS

3. COMPANY VALUES8. MARKETING MIX PROGRAMS

SWOT

➡ Good !t btw current brand identity and metrosexual trend for male cosmetic products.

➡ Leverage of its established customer base (Diesel community) as target segment.

➡ Learnings from successful launch of a fragrance as a !rst cosmetic product.S

➡ Lack of expertise in cosmetics / need to !nd the right partnership.

➡ Premium price positioning more dif!cult to sustain for daily consumption cosmetics

➡ Adequacy of current distribution channels to new product line.W

➡ Market growth for male cosmetics given new social trends (youth cult, neo-masculinity).

➡ Way to adress this new market with a lifestyle brand >< a cosmetic brand.

➡ Differentiation through technology by offering solutions to male skin speci!cities.

O

➡ Fierce competition from new entrants on the market (clothing & cosmetics brands, ..)

➡ Male cosmetics still a partially taboo subject. Virility of the brand can be affected.

➡ Very high customer expectations in regards to cosmetics. Failure to deliver will impact brand credibility.

T

1. MARKET HIGHLIGHTS

2. COMPETITIVE LANDSCAPE

30%

1%

36%

23%

10%

Market share of cosmetics market

INDIRECTDIRECT

CULTURE

VALUE

PERSONNALITY

ATTRIBUTES

BENEFITS

USER

3. COMPANY VALUES

CULTURE

innovation, originality

VALUE

youth, freedom, hedonistic,

anticonformist, sexy, multicultural ,

rebellious, provocative,…

PERSONNALITY

creative, dynamic, extrovert, bad boy,

individualist, unconventional,…

ATTRIBUTES

High quality products, faded and

wore out jeans, fashionable, dirty,…

BENEFITS

trendy, sophisticated sexiness, aesthetic

rebel, part of a community, unicity…

USER

young, active, 18-35 years,...

4. POSITIONING

➡ PriceGood quality-ratio

➡ CustomerYounger and lower purchasing power

than Armani & JP Gaultier’s customers

➡ ProductFocus on the design >< the

pharmaceutical brands

( Biotherm,Clarins…)

positioning tool

HIGH PERCEIVED VALUE

LOW DELIVERED COST

LOCAL REGIONAL GLOBAL

STRATEGIC THRUSTS

GEOGRAPHICAL SCOPE

market

➡ Theoretical potential marketMen willing or taking care of themselves

➡ Actual market : male target71% already using cosmetic 15% of 17 & 25 year 24% of 25 & 35 year

➪ ready to buy

➡ Addressable/serviceable market :

men interested in cosmetics + purchasing power

➡ Target/accessible market : men 20 and 30, educated, medium incomes, trendy, taking care of themselves, fashion oriented. User and non user of diesel.

4. TARGET SEGMENT

65-748%

11-166%

35-4427%

25-3424%

17-2415%

55-647%

45-5413%

5. TARGET SEGMENT

3 TYPES OF CRITERIApotential client

characteristics

20 - 30 YEARS

- Entry in the active life

- Single or in a relationship

- First choices & projects

- User and non user of Diesel

- Upscale clients

Male values

- Dynamism

- Seduction power

- Power

- External aspect

CIRCUMSTANCES OF USE

In the morning In the evening

PRODUCT /SERVICE CHARACTERISTICSFashionableRapidity to use/ease of useEffective/practicalDesigned/masculine product

6. CUSTOMER NEEDS iceberg theory

CUSTOMS

hygienic habit,

neat appearance BELIEFSFemininity/ gay people ➪ tabooundermine virility ➪ Fear to be judgedBeauty products = time-wasting

VALUESBefore? The metro-sexuel trend Now? The über-sexuel trend, “beauty attitude” , permanent

form, SOS trend, Egonomy, Bio revolution

ASSUMPTIONSCosmetic= luxury products

credibility = expensive

BEHAVIORS

6. CUSTOMER NEEDS

PRODUCT NEEDS

Shaving gel/foam

After-shave

Cleaning cream

Moisturizing cream

Scrubbing/ exfoliate

Tonic/revitalizing lotion

Characteristics: easy to use,

ef!ciency, not too heady

smelt, rapidly soaking into, not

too smoothy.

PACKAGING NEEDSObjective

practical, transportable and

ef!cient, luxurious and

environmental friendly.Subjective attractive, design

psychological effect on the

purchasing act.

CASEPRIN MODELNew

Individualistic customers ?Looking for modernity,

technology and ef!ciencyand need to feel unique.

➪ Cosmetic products makeyou feel different.

Pridebrand/products that bring added value ➪ Good mean to adhere to a

group of people (original, fashionable)

PrestigeDiesel = prestigious brand

➪ Cosmetics products associated to luxury product.

Aftershave32%

Shaving foam40%

Cleaning cream17%

Tonic lotion7%

cream4%

How did we measure the expected coverage? (7%)*

Target: men between 18-28 years oldNumbers of birth per year= 115 000 115 000*11years= 1 265 000Only the men: 1 265 000*0.52= 657 800

Number of actual users: 71%* 657 800= 467 038 ➪ 71% of the men have already used shaving cream and skin care products

User tried: 50%*467 038= 233 519 ➪ 50% part of the

consumer who will try the product thanks to a coupon or a sample

User !rst purchase: 25%*233 519= 58 579,75 (estimation of the %)

User second purchase: 75%*58 579,75= 43 784,81 (estimation of the %)

Yearly purchase: 75%*43 784,81= 32 838,61 (estimation of the %) 32 838,61/467 038= 7%

Volume: 7%*657 800*4products= 184 184 products/

7. OBJECTIVE, UNIQUE CONCEPT & STRATEGY

«MAGNETIC FOR MEN»

FEEL ATTRACTIVE, BE

MAGNETIC !Objective

Reaching 7% of the actual users of men’s cosmetics for a population between the age of 20 and 30 years on the testing market Belgium old by June

2011

unique concept«Magnetic for men»

Feel attractive, Be Magnetic!

MAGNETIC FOR

MEN

FEEL ATTRACTIVE, BE

MAGNETIC !

2 PRODUCTS IN ONE!

UNCOMMON DESIGN!

BE MAGNETIC

MAGNETIC FOR MEN

FACE CARE FOR

MEN

BE MAGNETIC

FEEL

ATTRACTIVE

MASCULINE PACKAGING PRACTICAL

2 PRODUCTS

SINGLE BOTTLE

MAGNET POUSSE-MOUSSE GAUGE

7. OBJECTIVE, UNIQUE CONCEPT & STRATEGY

➡ First step: « blockbuster » product, also called « locomotive product »

= product used by the majority of men➪ Shaving gel and After shave lotion

Main goal : reach the mass of consumers.Results : lots of sales but few bene!ts (in order to be accessible to the majority of the consumer)

➡ Second step: extension of the range to more speci!c products

➪ moisturizing cream, self tanning gel, face cleanser and revitalizing tonic gel

Main Goal : satisfy a more speci!c demandResults : lower sales volume but higher margin.

trojan concept

SWEET SHAVE

7. OBJECTIVE, UNIQUE CONCEPT & STRATEGY

SHAVING GEL & AFTER SHAVE LOTION = THE BLOCKBUSTER PRODUCT!Shaving gel for two different kinds of skin : sensitive and normal.

Sweet Shave, the shaving gel by Diesel has a double action which cleans the skin gently while softening the hair for a closer shave. It exists for two different kinds of skin : sensitive and normal.

Beat the fire, the aftershave lotion by Diesel will act as an extinguisher, removing the red blotches of the skin and moisturizing it

suggested range : face care for men

RANGE OF 6 PRODUCTS : SUGGESTED COMBINATIONS

BEAT THE FIRE

LOOK AT ME

7. OBJECTIVE, UNIQUE CONCEPT & STRATEGY

Moisturizing cream & self tanning gel

Look at me, the moisturizing cream by Diesel is a daily cream which brightens the complexion and !ght against draught skin.

Be hot, the self tanning gel by Diesel leaves the skin moisturized and gives a natural-looking tan.

suggested range : face care for men

RANGE OF 6 PRODUCTS : SUGGESTED COMBINATIONS

BE HOT

FRESH DIVE

7. OBJECTIVE, UNIQUE CONCEPT & STRATEGY

Face cleanser & revitalizing tonic gel.

Fresh dive, the face cleaner by Diesel removes dirt from your skin and gives freshness and vitality for the whole day.

Drive yourself, the revitalizing tonic gel by Diesel is an energizing face care. Ideal to hide an exhausted and overworked face

suggested range : face care for men

RANGE OF 6 PRODUCTS : SUGGESTED COMBINATIONS

DRIVE YOURSELF

8. MARKETING MIX SATISFIER (PRODUCT)

CONSUMER SOLUTION

➡ need to shave/having a healthy and neat skin

➡ an individual moment for himself ➡ packaging : duo of cosmetic range

of basic cosmetics for men

CUSTOMER VALUE

➡ quality-price ratio ➡ Diesel reputation ➡ originality of the concept ➡ attractive packaging ➡ environmental friendly product

(no paraben components)

COMMUNICATION

➡ extensive ➡ provocative - attractive ➡ !t to each pro!le ( tribes)➡ socializing websites

( Facebook, Twitter,…)

ACCESSIBILITY

➡ perfumeries ➡ Diesel shops➡ e-business

TANGIBLES

8. MARKETING MIX SATISFIER (PRODUCT)

BASIC INTANGIBLES

➡ functionality - Easy to use packaging

- Opening with a “pousse mousse”

- Adapted to humid environment

➡ quality - No paraben

- High quality

➡ Continuity Clothes-accessories-fragrances and

cosmetics but new activity

➪ Future development to ful!ll

the needs and make pro!t

DYNAMIC INTANGIBLES

➡ prestigious products:

high price but pleasure

and luxury

➡ fashion and aesthetic :

great importance of the

design, the fashion = most

important value of Diesel

INTANGIBLES

BASIC INTANGIBLES➡ security - Bacteriological tests- Support of experts

➡ HonestyHigh value brand reputation➡ Social conformity*Recycled aluminum

➡ PRODUCT PRICE LIST

The shaving gel : 15-20€ for 200ml The after shave lotion: 20-25€ for 100ml Moisturizing cream : 30-35€ for 75mlSelf tanning gel : 30-35€ for 75ml Face cleaner: 20-25€ for 150mlRevitalizing tonic gel: 30-35 € for 75ml

8. MARKETING MIXPRICEPRICE STRATEGY : LUXURY GOODS

PRICES SUGGESTED : JEAN-PAUL GAULTIER & ARMANI

➡ PACK PRICE LIST

Shaving gel and After shave lotion: 30-40€Moisturizing cream and self tanning gel: 50-60€Face cleanser and revitalizing tonic gel: 50-60€

➡ DISCOUNT

At the minimum purchase of 100€ in a Diesel store consumers deserve a 10%

discount on a cosmetic product.

8. MARKETING MIXPLACE

LOCATION

➡ The same location than for

the Diesel products/

fragrances

➡ Launching : Big cities of

Belgium,Paris and Airport.

➡ From June 2010 to

June 2011: 12 months test.

CHANNELThe Diesel products will be sold in :

Diesel storesPerfumeriesOnline store of Diesel Website➪ Special advantage for the sales

force in perfumeries if sales objectives are met.

COVERAGE

Objective: 7% of the target

group.

MEDIA PLANNING

8. MARKETING MIXPROMOTION

ABOVE THE LINE

➡Advertisement on TV

(such as previous advertising campaign of Diesel by using 3 styles of man)

➡Advertising in magazines for men

(GQ, Men’s health, Vogue homme,…)

➡Social Network

(Twitter, Facebook,…)

➡HOARDING BOARD «MAGNETIC FOR MEN»

FEEL ATTRACTIVE, BE MAGNETIC ! BELOW THE LINE

➡Event: sport events,

“Men on top”, “Men at the movies”, event for professionals

➡Samples: in the Diesel

shop while buying clothes oraccessories

➡Direct contact with

customer through sellingforce in the perfumeries and the Diesel stores.

9. MEASURES

➡ BENEFITS BELGIAN MARKETAverage price: 26.6€Amount of sales/year: 184 184units*26.6€ ➪ 4 911 573,33€/y

➡ COSTS❖ Costs of production : 3€*184 184 units ➪ 552 552€

❖ Packaging : cost of aluminium used for a can = 6cents. size, opening and solidity ????

❖ Advertising 1. Publication in magazine for men: for 3 months ➪ 8000€*3parutions*4magazines ➪ 96000€2. TV spot for 3weeks: 2BE ➪ 31000€ for 86 Growth Rating Point (=coverage*frequency) +

RTL 21000€ for 72 GRP. Total ➪ 52.000€

3. Advertisement hoarding for one week national presence: 3000 panneaux type 2m²*85€ ➪

255 000€

❖ Samples: 0.40€/sample*0.90*467 036actual users ➪ 168 133€

❖ Events :60 000€*4events 240 000€

BREAK EVEN POINT - COSTS & SALES

Horizon 1 : Extend and defend core business

➡ Opportunity to customize the packaging of the products through internet =

ideal « luxury » gift (ex: to add personal pictures).

➡ Goal? Increasing pro!tability of the business of beauty

product for men

Horizon 3 : Creative viable options

➡ To create a spa & beauty salon where men could

bene!t from an unique moment for themselves by

using Diesel products for men. (barber, massages,

face cares…)

10. FUTURE DEVELOPMENTS

Horizon 2 : Resourcing initiatives to build new businesses

➡ To launch a new range : « Come to your Senses »  Relaxing and Senses stimulating products.

BRANDSTORM  GAME  :  COSMETIC  PRODUCTS  FOR  MEN

DEMARTIN LAURA MERTENS TAMARA NICAISE JULIEPROST CAROLINE VAN STEENKISTE ISABELLE

BEHAVIORS OF THE ACTORS OF THE MARKETFATHI TLATLI MANOELLA WILBAUT MASTER 1

THANK YOU