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BIC Group Shaver Presentation
APRIL 2006 BIC Group Shaver Presentation Investor Relations Department: +33 (0)1 45 19 52 26 [email protected] [email protected] www.bicworld.com 1 Honor the past 2 Invent the future 3 History… 1975 1994 2005 1999 2000 2003 2006 2004 4 BIC Categories 2005 Full Year Results Net Sales Income From Operations 4% 8% 17% 52% Stationery Lighter Shaver Other 43% 49% 27% 5 Organization Structure For Shavers Global Category Management Geographic Management Consumer Strategies Europe Research and New Products Middle East / Africa / Asia Manufacturing North America / Oceania Quality Assurance Latin America (incl. Mexico / CA) 6 Organization Structure For Shavers Global Category Management Geographic Management Consumer Strategies Sales and Customer Relations Research and New Products Customer / Trade Marketing Manufacturing Customer Supply / Logistics Quality Assurance Local Operations 7 Presentation Agenda Page The Wet Shave Market 10 BIC Shaver Strategy 32 Strategy Implementation 38 BIC Strategy Results 46 8 The Hair Removal Market DOUBLE EDGE… individual blades ONE-PIECE… disposable / throwaway shavers SYSTEMS… handle and cartridge shavers Electric / Power Shavers… Braun, Remington, Philips Chemical Depilatories… Veet Manual Depilatories… Wax, Tweezers Electrolysis Salons Laser Hair Removal Shave Preparations… Foams, Gels, Creams After Shave… Moisturizers, Skin Conditioners 9 The Wet Shave Market 10 The Wet Shave Market Systems One-piece Double-edge 11 The Wet Shave Market 2005 Estimated Global Market Size Billion units Volume Billion euro Value 6 16 12 4 8 2 4 0 0 Systems One-Piece Double Edge Systems One-Piece Double Edge 12 The Wet Shave Market 2005 Global Market Size Volume Excluding Double Edge Value -0.6% Systems 31% One-piece 69% 10 billion units Systems 63% One-piece 37% +5.8% 7 billion euro (retail) 13 The Wet Shave Market 5 Year Market Trend - US + WE Value Volume Billion euro Billion units 4 4 3 3 One-piece 2 Systems 1 2 1 0 2000 2001 2002 2003 2004 2005 0 2000 2001 2002 2003 2004 2005 14 Activity from 2000… GILLETTE 15 Activity from 2000… SCHICK / WILKINSON 16 Activity from 2000… BIC 17 Activity from 2000… % of 2005 Sales from New Products (euro) TOTAL WET SHAVE USA WESTERN EUROPE Gillette Gillette Schick Schick Bic BIC Bic BIC 0 50 100 0 50 100 18 Activity from 2000… % of 2005 Sales from New Products (euro) TOTAL One-piece USA WESTERN EUROPE Gillette Gillette Schick Schick BIC Bic BIC Bic 0 50 100 0 50 100 19 Geographic Characteristics Systems vs One-piece Value Share Western Europe Systems 73% Brazil United States One-piece One-piece 27% 32% Systems 68% Systems 26% One-piece 74% 20 Focus on One-Piece “Global” Share of One-piece VALUE SHARE VOLUME SHARE 60 60 40 40 % 20 Share of One 20Piece 0 0 Gillette Bic BIC Schick Private Label Gillette Bic BIC Schick Private Label 21 Key Observations Triple-blades will play an increasingly important role in the future of one-piece Shavers 22 Focus on Women Market Segmentation Women vs. Men VALUE VOLUME Women 21% Women 23% Men 79% Men 77% 23 Focus on Women Market Segmentation Evolution TOTAL WET SHAVE 2005 Value Share WESTERN EUROPE USA BRAZIL 100 100 100 50 50 50 0 Men Women 0 0 Men Women Men Women 24 Focus on Women Market Segmentation Evolution Women vs. Men One-piece Value Share USA WESTERN EUROPE 90 90 90 Women value Share 60 60 Value Men Value Share 60 Share 30 30 One-Piece 30 0 0 2000 2001 2002 2003 2004 2005 2000 2001 2002 2003 2004 2005 0 2000 2001 2002 2003 2004 2005 25 Focus on Women SYSTEMS ONE-PIECE 26 Key Observations Triple-blades will play an increasingly important role in the future of one-piece Shavers Women products will play an increasingly important role in the future of Wet Shave 27 Pricing Evolution Total Western Europe + USA 1,52 1,61 1,37 0,98 1,12 1,23 0,31 0,32 0,34 0,36 0,39 0,41 2000 2001 2002 2003 2004 2005 One-piece Syst 28 Pricing Evolution SYSTEM REFILLS USA Retail Prices per cartridge Venus Vibrance 458 Mach 3 Power 458 431 Intuition Mach 3 Turbo 386 Venus Divine 383 354 Quattro Venus 345 Mach 3 336 257 Sensor XL Blue II 100 Source : IRI (US FDMX w/o Wal Mart, initial coverage rate 55%) – BIC exchange rate 2004 29 Pricing Evolution ONE-PIECE Western Europe / US Average 512 Venus Disp 324 Sensor 3 276 Xtreme 3 Comfort 3 Adv 244 Soleil 244 188 Comfort 3 127 Custom Plus 100 Blue II Classic Source : Nielsen (initial coverage rate 77%) and IRI (US FDMX w/o Wal Mart, initial coverage rate 55%) – BIC exchange rate 2004 44 30 Key Observations Triple-blades will play an increasingly important role in the future of one-piece Shavers Women products will play an increasingly important role in the future of Wet Shave Gillette consistently pushes the upper limits of pricing in both Systems and One-Piece 31 BIC Shaver Strategy 32 BIC Shaver Strategy Our vision: offer our consumers quality products at reasonable prices in all segments of the One-piece Shaver Category BIC® … A quality shave at a reasonable price! 33 BIC Shaver Strategy Our strategy 1. Invest in R&D to develop new products that meet consumer expectations in a rapidly advancing technological market. The 3 areas of R&D focus are : • Blade Edge • Shaver Head Geometry • Ergonomics and Aesthetic Design 34 BIC Shaver Strategy • Blade Edge Finding the proper balance of physical properties to deliver closeness, comfort, fluidity and safety • Shaver Head Geometry Understanding the impact of inter related variables like angles and spacing using state of the art computer simulation • Ergonomics & Aesthetic Design Finding the proper balance of ergonomic features with an aesthetically appealing design 35 BIC Shaver Strategy Ergonomics and aesthetic design 36 BIC Shaver Strategy Our strategy 1. Invest in R&D to develop new products that meet consumer expectations in a rapidly advancing technological market. 2. Focus on our development effort and marketing activity on the fast growing triple blade segment for both men and women. 3. Leverage our strength in low cost manufacturing to ensure that our triple blade products still offer great value to consumers. 37 BIC Strategy Implementation 38 BIC Strategy Implementation Focus on triple-blades BIC’s original triple blade entry product Launched in Europe / USA in 2003 Strong growth in Year 2, doubling market share in USA Very strong repeat purchase rates… consumer satisfaction 39 BIC Strategy Implementation Focus on triple-blades Launched in Europe / USA in 2004 Very strong consumer and customer acceptance Challenging for market share leadership in Women’s tripleblades Very strong purchase rates… consumer satisfaction 40 BIC Strategy Implementation Focus on triple-blades Launched in Europe / USA in March 2005 Positive customer acceptance Expand shelf share and build on positive momentum of original BIC® Soleil® 41 BIC Strategy Implementation Focus on triple-blades Launching in the USA in March 2005 Access the large male segment Innovative ergonomic design Still offer value consistent with BIC’s vision “A great shave for less” 42 BIC Strategy Implementation Focus on triple-blades Launching in Europe in March 2005 Accelerate consumer trade-up toward triple-blades Bridge the price gap between premium twins and triples 43 BIC Strategy Implementation Focus on triple-blades Launching in the US in 2006 to increase trial of the BIC® Comfort 3® franchise Add a feature to BIC® Comfort 3®: the pivoting head Same price, more value for consumer! 44 BIC Strategy Implementation Focus on triple-blades Launching in Europe in 2006 Accelerate consumers tradeup to triple-blades. Bridge the price gap between premium twins and triples 45 BIC Strategy Results 46 BIC Strategy Results KEY STRATEGIC PRINCIPLES Invest in R&D to develop new products that meet consumer expectations in a rapidly advancing technological market. Focus efforts on the fast growing triple blade segment for both men and women • RESULTS… 47 BIC Strategy Results KEY METRIC… Repurchase Rate Measure of consumer satisfaction % of households that repurchase a product after the initial purchase Source : IRI household panel tracking the purchases of 65,000 households in the USA Benchmark vs. Key Competitors 48 BIC Strategy Results REPURCHASE RATE 5-Feb-05 60 43% 30% 30 14,8% 15% 0 Gillette Sensor 3 Schick Xtreme 3 Bic Comfort 3 49 BIC Strategy Results REPURCHASE RATE 5-Feb-05 30 43% 30% 15 15% 14,8% 0 Gillette Sensor Schick Xtreme 3 Women 3Women Bic Soleil 50 BIC Strategy Results 2005 Volume Share by Segment USA WESTERN EUROPE 100 100 32,4% 32% 50 26,7% 27% 50 12,6% 13% 11,3% 11% 0 0 BIC Share of Tw in Blade BIC Share of triple Blade BIC Share of Tw in Blade BIC Share of triple Blade 51
