L’OREAL EAST AFRICA CCEF - ETHIOPIA 10th-11th April 2014
L’OREAL EAST AFRICA – CONSUMER PRODUCT DIVISION AGENDA
• ONCE UPON A TIME IN EAST AFRICA
• KENYA MARKET OVERVIEW
• FROM CHALLENGER TO LEADER
• BEYOND BUSINESS, LOCAL TALENTS L’OREAL IN EAST AFRICA
Morocco Egypt 1943 2008
• L’OREAL WORLD WIDE TARGET: 1BN NEW CONSUMER BY 2020 Ghana Nigeria new subsidiaries 1996 2011 Kenya new brands 2011 Hub Tanzania Uganda • UNIVERSALISATION: Ethiopia BEAUTY FOR ALL S. Sudan Rwanda Burundi Malawi Zimbabwe DRC South Africa Angola 1954 L’OREAL IN EAST AFRICA
• 2000’s Exportations from RSA <1Meuros
• 2011 1 subsidiary in Kenya 1 Division (CPD) 1 person 7Meuros
• 2013 1 new entity 1 plant 1 3PM 350 persons 25Meuros P.
1st acquisition in Africa
2012 2012
2013 2012 L’OREAL IN EAST AFRICA
15 years • New markets 2 years Local • Enlarged portofolio International Local formulation Formulation in HQ f • Low cost 1 plant / 40Munits Importations • Deep trade 8Meuros Low cost • Negotiation power KA 24 employees 15Meuros 245 employees L’OREAL IN EAST AFRICA
• Complementary in Brand & positioning: MS + Image
BRAND TARGET GROUP DISTRIBUTION PRICE
KEY ACCOUNTS SELECTIVE BEAUTY Index 180 vs SEC A SHOPS market avg Avg Annual Income = USD 69 k PHARMACIES HIGH MARGIN Index LOW VOLUMES 150 vs Nivea
KEY ACCOUNTS Index 150 vs SEC A to B BEAUTY SHOPS market avg Index Avg Annual Income MEDIUM MARGIN = USD 20 k 90 vs Clean & LOW VOLUMES Clear
SALONS, MODERN & Index 110 - SEC B to C+ TRADITIONAL TRADE 120 vs market LOW MARGIN avg HIGHER VOLUMES Avg Annual Income = USD 6 k
SALONS, MODERN & Index 90 SEC C+ to D TRADITIONAL TRADE vs market LOW MARGIN Avg Annual Income = USD 6 k avg HIGH VOLUMES KENYA MARKET OVERVIEW
• 300Meuros • Competitors – Manufacturers:
1 2 3 4 BEIERSDORF UNILEVER PZ CUSSONS HACO TIGER MS≈26% MS≈20% MS≈7% MS≈3%
Start date:1982 Start date:1930 Start date: 1990s Start date:2008
Subsidiary+Factory: Subsidiary: Subsidiary+Factory: Subsidiary+Factory: Beiersdorf East Africa Ltd Unilever East PZ Cussons East Africa Haco Tiger Brands (EA) & Southern Africa Ltd Ltd
Brands: Brands Brands Brands: Nivea Vaseline, ST.Ives, Venus, Imperial Cussons Palmer’s, Miadi, TCB, Limara Rexona, Dove, Axe Carex, Joy, Pressol Ingram’s, Motions
Categories: Categories: Categories: Categories: Body, Deo, Face and Body, Deo, Hygiene, Hair, Hygiene and Body Body and Hair Hygiene Face and Hair
Media investment Media investment Media investment Media investment: 35% SOI 23% SOI 1% SOI 3% SOI
Source: Loreal Nielsen 2013; IPSOS SYNOVATE KENYA 2013 Kenya; Nakumatt January sales 2013; Companies websites KENYA MARKET OVERVIEW
Supermarkets Salons Sales Contribution: Sales Contribution: est. 35% est. 5%
Beauty Shops Groceries Sales Contribution: Sales Contribution: est. 50% est. 10% BECOME LEADER
Market Share Brand Leadership Leadership
Business Performance
Consumer Intimacy Challenges Distribution (access deep / category mgt) Supply / logistic Cost of good Labor relations / Talents management
Parallel / counterfeits Competition (Bdf, UL investments) BEYOND BUSINESS
Segenet Kelemu Lupita Nyongo Director General, International Center for Insect Physiology Actress and Ecology (ICIPE), Nairobi, Kenya