INTERNATIONAL BUSINESS CASE

JEUX DU COMMERCE 2012 UNIVERSIT LAVAL

LEVERAGING COMPETITIVE INTELLIGENCE1

Written by : Procter & Gamble Canada Since 1837, P&G has built a rich heritage of touching consumers lives with brands that make life a little better every day. P&G has grown to a multi-billion company by leveraging consumer knowledge, innovation, brand- building, go-to-market capabilities and scale. In addition to new business creation with brands like Tide, Crest and Pampers, Febreze and Swiffer, acquisitions allowed P&G to grow and refine its mission over the years. Since the 1980s, the company has acquired several brands such as Vicks, Olay, Tampax, Clairol and Pantene, fortifying its presence in beauty and personal care. In 2005, P&G acquired Gillette and added to its portfolio Duracell, Gillette, Oral-B and Braun. Procter & Gamble manufactures and distributes more than 300 brands in 180 countries around the world. With more than 138,000 employees working in 80 countries, P&G recorded sales of $82.5 billion in 2011. Context The Global Market for Hair Care has been showing steady growth over the past five (5) years and competition is heating up in all regions around the world. While developed markets (North America and Western Europe) account for nearly half of the worlds beauty and personal care industry, it has been showing low-digit growth over the past five (5) years. Demand is growing fast in Asia, Eastern Europe, the Middle East and Latin America (see Appendix). The category counts two main product segments: i)hair care (80% of sales, 6% growth over past five (5) years) ii) colour care (20% of sales, 5% growth over past five (5) years)
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We would like to thank Procter&Gamble Canada the elaboration of this case. The present document should not be considered as reflecting the opinion or position of Procter&Gamble Canada or the author, with regards to parts or the totality of the issues (including products, services, practices and other elements of the case, implicit or explicit) addressed or presented whatsoever. The statements included do not consist in recommendations, neither are formulated to prompt or dissuade from an investment, whatsoever. Moreover, this case does not represent a reliable source of data on the company, its activity sector or the general business environment. Indeed, several elements included have been altered, partly developed or otherwise modified to meet the goals of the present situation. Besides, some data might come from secondary sources, and may have been treated or transformed for practical or competitive reasons. This case does not constitute an example of good or bad management practices. It was written in an entirely pedagogical objective: to stimulate discussion and analysis in an academic context.

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Salon Hair Care remains a relatively small segment globally (1% of total sales, -1% growth over past 5 Years) and represent high margins for manufacturers and retailers, especially in North America and Western Europe where it is over-developped. P&G has successfully expanded in core white space markets and has become the number one hair care manufacturer in the world (Euromonitor, 2010). Acquisitions (Richardson-Vicks, Clairol), vertical expansion in both the salon segment and entry-tier, as well as early presence in white space markets has fuelled P&G growth in Hair Care and Hair Colour. P&G now counts 13 Hair Care brands (see Appendix) in its portfolio. Assignment You have just been hired in the Global Hair Care Category Team, managing global strategy and innovation for several top hair care brands, such as Pantene, Head & Shoulders and Herbal Essences. Your first project is to identify opportunities for the Hair Care category in the next 5 years. You received, this morning, a report from the Competitive Intelligence team to help you gain a picture of overall activity in this category (see attached) and your marketing director would like to understand your recommendations in the following areas: What are the two (2) or three (3) biggest opportunities (globally or regionally) and how can we achieve them?Are there any competitive launches that pose a high risk to our business? Do we need to take action to defend (e.g. re-focus a brand, expand a brand geographically, aquire a competitor)? Be sure to quantify the size of the opportunities and risks and provide rationale for all your recommendations using the data provided in the the CI report and appendix.

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Global Hair Care Competitive Intelligence (CI) Report (information has been modified for the needs of this case study and does not reflect latest intelligence) UNILEVER Unilever continues to focus on global Sunsilk brand. Unilever continues to drive innovation on its global brand Sunsilk through product innovation and ad campaigns. As predicted, Unilever recently launched the Sunsilk Color Shine range in the U.S. which includes shampoo, conditioner and color booster. It has also replaced its present line of Thermasilk shampoo and conditioner with the new Sunsilk range called "Thermashine" in January 2007. The new range includes shampoo, conditioner and Detangling Shine Spray. The products are to protect hair against damage caused by hair dryers or flat irons and retail for US$ 3.59. Unilever has also launched an internet web site in Russia which looks very similar to their other global sites and features their shampoo, conditioner and styling ranges. The campaign's slogan is "Free to be Different". (Sostav.rv 15th January 2007; FDC reports 4th January 2007) Unilever expand and build "CLEAR" leadership in Asia and potentially developing a global launch model in anti-dandruff. "Clear" has appeared alongside Sunsilk & Dove in the Global Hair Care slide shown during Unilever's Q3 results presentation. With the appointment of Seokhee Won as Global Vice President for the brand in June 2006, we see Unilever's strategy and focus on building leadership in Asia, developing it as their stronghold and expanding to other regions. We continue to see very strong activities behind "Clear" in Malaysia and Singapore as they try to develop a winning business model in the clean value seeker and mid-tier anti-dandruff segment. They have launched the brand in China and in April 2007 launched "Clear Scalp Oil Control" in India. Trademark registration for Clear conditioner and Clear shampoo for Men has also been noted in Indonesia. (The Hindu Business Line 18th January 2007) Unilever launches "Dove Pro-age" worldwide and continues to invest behind the overall brand. As part of the next phase of its Real Beauty campaign, Dove is hoping to change attitudes in the anti-aging category with the launch of Pro-Age, a collection of hair and skin care products designed for pre- and postmenopausal women. This is the first time Dove has introduced a collection of products simultaneously across all categories both in the U.S. and worldwide. Dove's Marketing Director in the U.S., Kathy O' Brien, mentioned they have aggressive plans over the next five (5) years and expect to double their business again. Their UK Television copy for the range, that aired for the first time last weekend, uses naked older women to promote the brand, continuing their "Real Beauty" theme. Dove is continuing to drive their overall brand through their advertising campaigns, on-line promotions and innovations. In Russia, Dove advertising has been named one of the best products in 2006. Dove also introduced a new line of lightened and dyed hair care products in the market.

INTERNATIONAL BUSINESS CASE JDC2012

Dove Unilever UK has also invested $20 million to relaunch its Dove brand with a more contemporary packaging and improved product formulation. In Brazil, it has launched a new product against hair loss. In Argentina, Dove plans to introduce new versions of its four main products namely deodorants, bath soaps, hair care items and creams this year. (Womens Wear Daily 12th January 2007; Industriya Reklamy January 2007; Cosmetics International 12th January 2007; Clarin 23rd January 2007; Gazeta Mercantil 12th January 2007; Vitrina December 2006; Grocer 6th January 2007)

North America Unilever Retail Hair Care OGSM analysis. We have recently simulated an OGSM for Unilever's NA retail hair care business (document capturing Opportunities, Goals, Strategies, Measures). We expect Unilever to grow Dove and Sunsilk over the next 5 years at CAGR of 6%. Furthermore, we can expect them to drive Sunsilk and double their first (1st) year target share of 3.5%-7.0% while growing Dove to become number 2 brand in the category over the next 5 years. The analysis predicts that Unilevers strategy will be to focus on their Big 3 brands i.e., Dove, Sunsilk and Suave and we have already seen some of the predicted actions begin to happen. On Dove, we expect growth through realizing full potential of Campaign for Real Beauty in Hair Care, bringing Dove anti-dandruff line to North America and continuing to capitalize on market trend toward premium products through Advanced Care line (e.g., Dove Pro-Age). We have seen these activities happening not only in North America but in other parts of the world as well. On Sunsilk, Unilever will likely drive growth via proven global successes (i.e., new items every 6 months). As we predicted, they have recently launched the Color Care line in the U.S. which has been launched in most Asia-Pacific markets over the past three (3) months. We can expect them to introduce Sunsilk Anti-Dandruff in the U.S. and expand Styling line as well. VO5 launches specific range for long hair. VO5 is launching a new range of products specifically targeted at long hair. The range of haircare and styling products, "Perfect Lengths", will be available in the UK this month, with a television and press campaign launching in April. The products contain a keratin strengthening ingredient that apparently offers "intense care" for long hair and is claimed to provide five (5) times more protection against breakage. This launch follows a focus by L'Oral on long hair (e.g. Nutri-Gloss, Fructis Long & Strong) and aggressive anti-breakage claims (e.g. Elvive Anti-Breakage - "up to 95% less breakage from first brushing") and continues Culver's focus on trying to strengthen the brand in the UK.

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Uniliver acquires Alberto-Culver. On May 10th 2010, Unilever and the Alberto Culver Company jointly confirmed that they had obtained the necessary regulatory clearances for Unilever to acquire the Alberto Culver Company. Unilever payed $3.7 billion in cash for the Alberto Culver Company, which generated annual sales in excess of 1.2 billion (US$1.6 billion) in fiscal year 2010. With the acquisition, Unilever becomes the worlds leading company in hair conditioning, the second largest in shampoo and the third largest in styling. Alberto Culver Company manufactures, distributes and markets leading beauty care and other personal care brands including TRESemm, Alberto VO5, Nexxus, St. Ives, Simple and Noxzema in the United States and internationally. It is also the second largest producer in the U.S. of products for the ethnic hair care market with leading brands including Motions and Soft & Beautiful. In a previous analysts' call Culver confirmed the TRESemm launch into Mexico, following previous launches in Argentina and Chile, but said that they did not have"any specific plans for" further geographic expansion although they are "investigating several things right now, several markets... We're testing some things, we may do some experimentation sometime in the not too distant future". This suggests that we should be on the alert for more TRESemm activity in the near future but that their rapid geographic expansion may be on hold for a short time. They also shared that they are "in the process of launching some new items" within the US Nexxus range and that they are "actively researching different [Mergers & Acquisitions] options". L'ORAL L'Oral continue to focus on US with launch of VivePro Nutri-Gloss range and Studio Line relaunch. As predicted, L'Oral have followed the relaunch of their Vive brand as VivePro last year with the launch of the VivePro Nutri-Gloss range this month. This completes the global roll out of this highly successful initiative; we expect the launch of VivePro styling and anti-dandruff ranges to follow. The US range is broader than the global range, featuring seven (7) skus, with three (3) shampoo and conditioner collections for different hair types and one (1) treatment product, possibly highlighting another digression of the US L'Oral Paris brand from the global strategy or just a tactical measure to secure more shelf space. The Studio Line relaunch restages the entire line into black packaging, reducing the number of skus from 25 to 16, including two (2) new skus. The range seems to be targeted towards the male consumer, with a large proportion (~40%) of the range in gels. The restage involves a price increase of over 30%, in line with the 25%-30% increase we saw on the VivePro relaunch last year and with L'Oral's overall global strategy to tier up their brands; Fructis seems likely to be the next brand to receive this treatment in the US. The US Studio Line restage takes the range into very different packaging compared to the relaunches we saw in other markets, including Canada last year, another example of the US L'Oral Paris brand disgressing from the global norm.

INTERNATIONAL BUSINESS CASE JDC2012

L'Oral Professionnel launch new colorants line targeting grey hair. L'Oral Professionnel have launched a new colorants line in Germany aimed exclusively at grey haired salon clients. The "Color Supreme" line consists of 17 shades and claims to provide "perfect coverage for hair having 80-100% of white, without mixing". The launch appears to be pure commercial innovation, possibly as a reaction to the KP relaunch. L'Oral is promoting the launch via a range of publications in the German trade press and we hear rumours that the launch may spread to Austria in March 2007. Given that L'Oral have launched this line as a stand-alone brand rather than under an existing brand (e.g. Majirel), this could signal an intent to broaden the offer for this target group, consistent with their corporate focus on the ageing population. Review of hair ranges on CCB-Paris website confirms changing role for the site. We recently updated our review of the direct mail site (Le Club des Crateurs de Beaut), 50% owned by L'Oral. As shared in our initiative launch patterns analysis, this site was used by L'Oral as a testing ground although our recent thinking is that it has become a more commercial operation. This seems to be confirmed by the launch of products very similar to the Elvive Nutri-Gloss initiative, over a year after they were first launched in retail and over two (2) years since the concept first appeared in professional salons. However, L'Oral have just launched an anti-dandruff treatment on the site that we haven'tbeen seen elsewhere. The product (Peeling So Clean!) includes Zinc Pyrithone and is to be used three (3) times per week during dandruff crises and before using AD (anti-dandruff) shampoo, suggesting exploration of products for broader reapplication or just CCB following L'Oral's overall increasing focus on antidandruff. Other L'Oral news in short. L'Oral are launching a specific collection targeted at women with grey hair under their Garnier Ultra Doux brand in France. This is their second move to target specific consumer segments following the launch of their ethnic collection last year and is consistent with L'Oral's corporate themes and the brand's focus on providing products tailor-made to their diverse prime prospects' needs.

INTERNATIONAL BUSINESS CASE JDC2012

KAO Kao manages to hold forecast with Q3 sales in line with first half. After poor first half results which prompted Kao to lower their full year forecast, Kao's third quarter results enabled them to hold their fiscal year forecast unchanged. Sales for the first 9 months were up +25%, in line with the first half and mainly driven by the consolidation of Kanebo. Sales for the consumer division were up +5.3% (incl. FX) mainly driven by FX help from overseas sales and underlying sales in Asia and Oceania (+7.4% like-forlike); sales were up +3.4% in Japan and +2.5% (like-for-like) in North America and Europe. The expansion of Asience into Singapore and a "major renewal in the KMS professional hair care brand" in North America and Europe were mentioned as contributors to growth while flat consumer spending and prices in Japan and "fierce competition..., mainly in the hair care category" in North America and Europe, held back growth. Operating income was down -7% driven by charges relating to the Kanebo acquisition and higher raw material costs; excluding the Kanebo amortisation charges, operating income was up +12%. Kao also announced changes to their structure, merging their sales companies and introducing four new business units, including the beauty care business unit, apparently driven by a need to respond to "dynamic shifts due to societal changes" in the Japanese market but probably also reflecting their attempts to get the business back on track after the disruption of the Kanebo acquisitions. SHISEIDO Shiseido delivers poor OND results. After beating analysts' expectations in the first half, Shiseido have posted a disappointing sales growth of +3.4% for the nine months to end December 2006. Net income fell 17%. Shiseido blamed the weak sales on the "sluggish" Japanese market where sales were down -0.9%, a slight decline versus their first half sales performance of -0.2%, presumably in part driven by an inability to sustain the strong share growth they experienced with the Tsubaki launch earlier last year. International sales propped up the overall company performance, although the weak Yen will have helped. Asia/Oceania was up +30%, Americas +12% and Europe +4%. Having raised their fiscal year forecast last quarter, Shiseido kept their sales and ordinary income forecasts unchanged at +3.6% and +16% respectively but increased their net income forecast slightly driven by lower expected taxes. Shiseido are now halfway through their three (3) years plan and will be hoping that this will start to drive faster sales growth in the near future. Other Shiseido news in short. Shiseido provided another indication of their increasing focus on China with the launch of its official website in China last month. The new website offers links to Shiseido brands, news about the company and attempts to attract consumers by providing beauty tips.

INTERNATIONAL BUSINESS CASE JDC2012

UPSTREAM/TRENDS/OTHER Bumble & Bumble and PureOlogy reviews give insights into premium professional brand business models. Our recent analysis of the L'Oral Krastase brand highlighted the business model behind its success in the premium professional care market. Este Lauder's North American Bumble & Bumble brand also plays in this segment and has experienced strong growth in the US. The brand shows many similarities in its business model, including direct-to-salon and selective strategy, strong focus on education, business consulting focus and a focus on raising awareness through public relations. However, they do not advertise directly to consumers, a key strategy for Krastase. PureOlogy is the market leading luxury color care brand in the US. It is distributed to premium salons and spas via distributors and uses its simple story of colour protection via sulphate-free products to sell its range to stylists and consequently consumers. It has consistent trade advertising and very good public relationscoverage but doesn't advertise directly to consumers. PureOlogy has recently announced the appointment of a top stylist as International Artistic Director with the intent of taking their education offering to the next level. Revlon blows budget to air Superbowl ad to promote launch of new Colorist brand. We reported on the expected US launch of Revlon Colourist, a new premium colour brand. The brand has now launched, kicking off their campaign with a minute long advert during the Superbowl last weekend. With CBS charging as much as $2.6million for a 30 seconds ad, this airing will make a significant dent in Revlon's launch budget (estimated at $33million). The brand is targeting the very premium of the US colorants market with an SRP of $15.99. This is far above the average pricing for the category, even more premium versus L'Oral Paris's recent launch into the premium segment with Natural Match (SRP $11.99) and over 3 times the price of any of Revlon's other ranges, all priced in the opening price point tier at $3.99-$4.99. We expected the product to contain a colorant and a weekly colour refresher but the interesting twist is that the colour refresher is contained within the conditioner, another example of the blurring of product forms. The brand attempts to justify its premium price with claims that it will provide "salon quality haircolour" plus a "2-minutes weekly colorglaze treatment" and the Superbowl ad featured their spokesperson Sheryl Crow with a lot of emphasis that she actually used the product. Given the Revlon's recent poor performance on major initiatives, they will be focusing very hard to make the Revlon Colorist launch a success. (PR Newswire 31st January 2007, Wall Street Journal 30th January 2007- thanks to Tracey Howard-TH - Global Haircolor CI Council) China competitor C-Bons shares reasons for success and is open to being acquired. Domestic firm C-Bons is a significant player in Chinese market and, according to Euromonitor, is number two in the hair care category with its Slek and Maestro brands. Their president shared his thoughts on their success in a recent interview. These included a focus on product quality, with their products apparently recording blind test wins, a focus on R&D to help provide new concepts and products, an interactive marketing approach to avoid having to spend large sums on television, a shift

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in focus towards direct distribution to supermarkets with specific strategies, including public relations (PR), for each channel and a plan to focus more on the growing rural markets. He shared that C-Bons has been approached by a number of foreign personal care firms and investing institutions and, while they were not in need of any outside capital, they "do not mind mergers or acquisitions, as long as it benefits the growth of the whole firm". Given that many of their strategies are quite similar to their larger rivals, an acquisition seems possible as our major competitors try to establish a stronger presence in China. (China Business Weekly 14th January 2007)

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APPENDIX 1: P&G Hair Care Main Brands Brand Rejoice Description Products Rejoice has been the top-selling haircare brand in China for over 20 years. Known as the expert in smoothness, Rejoice has gained high recognition by Chinese consumers, and was voted The Most Popular Foreign Trademark in China by 250,000 consumers and experts nationwide. Segments: Shampoo, Conditioner, 2in1 Price tier: Entry-tier NIOXIN uses advanced technologies to deliver thicker, fuller, denser-looking hair. Our commitment to innovation, supported by research, enables us to be able to help more than 50% of people worldwide who experience thinning hair. Segments: Medicated Shampoo, Conditioner, Treatment, Styling. Price tier: Premium/Salon/Expert Aussie was introduced to the market in 1979, with a range exciting formulas containing ingredients from Autralia such as Blue Gum Leaves, Australian Custard Apple, Quandong, Mint Balm, Wild Cherry Bark and Jojoba Seed Oil. The brand is mostly distributed in mass retailers and includes shampoos, conditioners, treatments an stylers. The brand is present in North America and Western Europe. Segments: Shampoo, Conditioner, 2in1, Styling. Price tier: Entry-tier For more than 60 years, Pantene has offered consumers unsurpassed quality in state-of-the-art products that have exemplified serious hair care and a hands-on approach of achieving beautiful, healthy hair. Pantene is one of P&G billion-dollar brands and got distributed all over the world since P&G acquired it in 1985. It is mainly distributed in mass retailers.

NIOXIN

Aussie

Pantene

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Fekkai

Herbal Essences

Segments: Shampoo, Conditioner, 2in1, Treatment, Styling. Price tier: Mid-tier A roster of celebrity clientele, explosive press and an award-winning product line transformed Frdric Fekkai from red-hot hairdresser to luxury lifestyle brand by 1995. By 2005, Fekkai expanded the product lineup and salon business that exuded his specific brand of effortless style. Today, the Fekkai remains a category headliner; the ultimate in luxury hair care distributed in over 40 countries worldwide. It offers salon shampoo, conditioners, treatments and stylers. Segments: Shampoo, Conditioner, Treatment, Styling. Price tier: Premium/Salon/Expert Herbal Essences is an entry-tier hair care brand distributed all-over the world offering shampoo, conditioners, and stylers with scents inspired from nature.

Segments: Shampoo, Conditioner, 2in1, Styling Price tier: Entry-tier Head & For almost 50 years, Head & Shoulders has provided Shoulders millions of consumers with superior scalp care. Introduced in 2007, the proprietary zinc pyrithione (ZPT) formula in Head & Shoulders effectively targets the source of dandruff so men and women can feel confident that their hair looks great. With full lines of shampoos and conditioners, Head & Shoulders systems provide the dual benefits of achieving both a healthy scalp and great-looking hair. Offering ten shampoos and five corresponding conditioners, Head & Shoulders has a line to fit the needs of all men and women Segments: Medicated Shampoo, Conditioner, 2in1. Price tier: Mid-tier

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Wella

Throughout the brands history, Wella has earned its title as the global authority on hair color. Wella Professionals has a strong heritage of outstanding leadership in the salon industry. For over 125 years, Wella Professionals has perfected the science and beauty of hair, working with scientists and colorists worldwide to drive innovation and inspiration for salon professionals. Wella Professional is available in salon all over the world and the brand just launched Wella Pro Series mid-tier offering in Western Europe. Segments: Shampoo, Conditioner, Treatment, Styling. Price tier: Wella Professional: Premium/Salon/Expert Wella Pro Series: Mid-tier Sebastian offers professional Hair Care (Shampoo, Conditioners, Treatments, Styling) and Colour products and services around the world. Sebastian is distributed in North America, Western Europe and Asia. Segments: Shampoo, Conditioner, Treatment, Styling Price tier: Premium/Salon/Expert By the early 1980s, Vidal Sassoon, a recognized British hair-dresser, sold his name to manufacturers of haircare products and the multinational Procter & Gamble was applying his name to shampoos and conditioners sold worldwide. Entry-tier products sold in mass markets were discontinued in the 1990s. Today, the brand offers salon hair care solutions, appliances and services in North America and Western Europe. Segments: Shampoo, Conditioner, Treatment, Styling Price tier: Premium/Salon/Expert

Sebastian

Sassoon

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APPENDIX 2: Unilver Hair Care Main Brands Brand TRESemm Description Products Started in Salons in 1947, TRESemm has now become a salon-inspired brand sold in mass channels after it was bought by Alberto in 1968. Unilver acquired Alberto in 2011. Segments: Shampoo, Conditioner, 2in1, Styling Price tier: Mid-tier Sunsilk provides everyday hair solutions. It is distributed in 80 countries around the globe. Segments: Shampoo, Conditioner, 2in1, Styling Price tier: Entry-tier Dove provides a wide range of cleansing and personal care products for your skin and hair. Dove started its life in 1957 as a beauty soap bar and expanded in Hair Care in the 1990s. It also has introduced a line for men in 2010. Segments: Shampoo, Conditioner, 2in1, Treatment, Styling Price tier: Mid-tier Similar to Dove, Lux started as a soap, but the range now includes shower gels, bath creams and a range of hair care products such as shampoos, conditioners and treatments. Lux is distrubuted in 80 countries, mostly in Asia, Middle East, Brazil. Segments: Shampoo, Conditioner, 2in1, Treatments. Price tier: Mid-tier Axe is a male personal care brand offering bodywash, deodorant, shampoo, conditioner and hair styling products. The European launch of the deodorant was followed by a great success in Latin America and North America and had a moderate impact in Asia and Africa.

Sunsilk Hazeline

Dove

Lux

Axe Lynx Ego

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Nexxus

Segments: Men Shampoo, Conditioner, 2in1, Styling Price tier: Mid-tier Nexxus is a salon hair care brand founded in 1979 before getting acquired by Unilver. Segments: Shampoo, Conditioner, Treatment, Styling Price tier: Premium/Salon/Expert Clear is a hair and scalp care brand introduced by Unilver in Asia and now expanding in other regions. It offers products for both men and women. Segments: Medicated Shampoo, Conditioner, 2in1 Price tier: Mid-tier

Clear

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APPENDIX 3: LOral Hair Care Main Brands Brand LOral Paris Description Products The LOral Paris brand encompasses the four major beauty categories haircolour, cosmetics, haircare, and skincare and includes such well-known brands as Superior Preference, Natural Match, and Couleur Experte haircolours; VIVE Pro; DermoExpertise skin care, including Advanced Revitalift, Age Perfect, Men Expert, Skin Genesis, Sublime Glow and Sublime Bronze; and LOral Paris Cosmetics, including Colour Riche, True Match, Bare Naturale, and Wear Infinite collections, Voluminous, Double Extend, Telescopic, and Volume Shocking mascaras, among many others, and the HiP high intensity pigments line. LOral Paris Hair Care is distributed globally. Segments: Shampoo, Conditioner, 2in1, Treatment, Styling Price tier: Mid-tier

Garnier

Created in 1904, the Garnier brand has become a large player in the beauty industry by offering women and men Skin Care, Hair Care, Hair Colour inspired by natural ingredients. It is now distributed in over 70 countries. Segments: Shampoo, Conditioner, 2in1, Treatment, Styling Price tier: Entry tier LOral Professional, Luxury and Active Divisions also offers the following brands: LOral Professionel Krastase

Others

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Redken Matrix Pureology Mizani Shu uemura art of hair Kiehl`s Vichy The Body Shop

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APPENDIX 4

Market Sizes By Region and Segment

World
Beauty and Personal Care Hair Care Shampoos Medicated Shampoos Standard Shampoos 2-in-1 Products Conditioners Colourants Hair Loss Treatments Perms and Relaxants Salon Hair Care Styling Agents 381,967 67,568 23,131 729 22,402 2,956 13,747 12,256 681 1,002 4,634 9,161

Asia Pacific
6% 101,834 6% 8% 3% 8% -2% 8% 6% 7% 5% -1% 3% 18,076 8,097 161 7,936 436 4,475 1,953 433 74 614 1,995 8% 8% 11% 10% 12% -17% 10% 7% 7% 0% 6% 4%

Australasia
6,274 955 287 14 273 8 208 196 14 0 124 119 7% 6% 4% 7% 4% 0% 4% 10% 2% -17% 6% 6%

Western Europe
97,862 15,462 4,761 180 4,581 780 2,355 3,104 89 95 905 3,374 3% 2% 2% 1% 2% 2% 3% 2% 7% -1% 1% 0%

Eastern Europe Middle East & Africa North America

25,803 4,658 1,911 55 1,856 296 490 1,154 4 36 44 723 8% 8% 9% 11% 8% 2% 8% 9% 8% -1% 11% 5% 17,704 3,229 1,056 35 1,021 417 597 438 10 160 153 400 10% 10% 10% 2% 10% 7% 12% 12% 7% 7% 2% 10% 67,789 11,530 2,475 226 2,249 592 1,762 1,938 116 185 2,696 1,766 2% 0% 2% -1% 2% 1% 2% 1% 6% -1% -3%

Latin America
32,227 7,381 2,398 34 2,365 280 2,048 1,892 11 252 58 15% 13% 14% 11% 14% 9% 14% 13% 7% 12% 11%

$MM USD P5Y CAGR $MM USD P5Y CAGR $MM USD P5Y CAGR $MM USD P5Y CAGR $MM USD P5Y CAGR $MM USD P5Y CAGR $MM USD P5Y CAGR $MM USD P5Y CAGR

1% 442 12% Source: Euromonitor, 2005-2010

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APPENDIX 5
Manufacturer and Brand Retail Shares (%) By Region
World
Procter & Gamble Co, The Pantene Head & Shoulders Herbal Essences Wella Clairol Vidal Sassoon Aussie Sebastian L'Oral Groupe L'Oral Paris Garnier Matrix Redken L'Oral Professionnel Krastase Unilever Group Sunsilk Dove Lux TRESemm Clear Suave Alberto VO5 Nexxus Hazeline Axe/Lynx/Ego Henkel AG & Co KGaA Kao Corp Shiseido Co Ltd Beiersdorf AG Colgate-Palmolive Co Avon Products Inc John Paul Mitchell Systems Inc Johnson & Johnson Inc Private Label Others 19.8 7.1 3.6 n/a 3.3 3.0 0.5 0.2 0.1 17.5 7.8 5.4 0.7 0.6 0.4 0.3 12.7 4.4 2.0 1.0 0.9 0.8 0.7 0.6 0.2 0.1 0.0 5.0 2.8 1.8 1.6 1.5 1.1 1.0 0.9 1.7 19.1

Asia Pacific
19.1 7.0 4.5 n/a 1.1 1.2 1.8 0.0 0 3.6 1.9 0.7 0.0 0.0 0.5 0.1 14.8 2.6 1.8 3.8 0 2.3 0 0.4 0.0 0.4 0.0 1.3 7.4 6.5 2.2 0.8 0.2 0 0.4 0.7 15.8

Australasia
24.8 10.0 3.8 n/a 3.2 7.8 0.0 0 23.2 7.5 8.0 0.0 2.2 0.0 3.0 18.7 7.4 2.0 0 3.6 0 0 3.2 0 0.0 0.0 13.0 0 0 0 4.1 0.6 0 1.7 0.8 9.5

Eastern Europe
20.4 4.7 4.1 n/a 5.9 1.3 0 0.0 0 14.9 7.5 6.0 0.0 0.0 0.2 0.0 6.1 2.4 1.4 0 0 0.5 0 0.0 0.0 0.0 0.0 18.4 0 0 3.5 1.1 2.8 0 0.7 1.0 19.2

Latin America
16.4 6.2 3.0 n/a 5.5 1.4 0 0.0 0 14.7 8.1 6.3 0.0 0.0 0.1 0.2 16.5 11.9 2.7 0 0.1 0 0.3 0.4 0 0.0 0.0 1.2 0 0 0 4.8 3.0 0 0.5 0.3 20.4

Middle East & Africa

21.3 8.6 4.2 n/a 4.9 2.7 0 0.0 0 13.6 4.6 2.7 0.0 0.3 0.7 0.3 13.6 6.9 1.9 0 0.4 1.4 0 0.4 0.0 0.0 0.0 3.8 0.2 0 1.8 1.0 0.4 0.1 0.8 0.1 21.7

North America
25.0 8.8 3.6 n/a 1.1 8.4 0.8 0.7 25.1 6.7 5.5 3.9 2.7 0.2 0.0 13.4 0.9 1.9 0 3.6 0 3.6 0.9 1.3 0.0 0.3 0.9 1.5 0.4 0 0 0.4 5.5 1.9 1.3

Western Europe
19.1 7.1 2.9 n/a 4.6 2.7 0.2 0.5 0 31.6 16.3 10.4 0.1 0.3 0.6 0.7 7.8 2.1 2.0 0 0.8 0.2 0 0.8 0.0 0.0 0.0 11.6 2.3 0 3.0 0.6 0.4 0.1 1.2 5.2

11.5 10.2 Source: Euromonitor Brand Shares, 2010

INTERNATIONAL BUSINESS CASE JDC2012

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