2016-17 s1-18277-15-mariana lopes et al annex€¦ · exhibit 9: skin care market trends and...

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Appendix

Exhibit 1: Categories per industry - home care and beauty and personal care ................ 3

Exhibit 2: Potential and risk variables and respective weight distribution ...................... 3

Exhibit 3: Market Attractiveness Matrix Main Categories .............................................. 4

Exhibit 4: Laundry care brand shares .............................................................................. 4

Exhibit 5: Laundry care market trends and insights ........................................................ 5

Exhibit 6: Sub-categories within skin care, men’s grooming and fragrances ................... 5

Exhibit 7: Potential and risk variables and respective weight distribution ...................... 5

Exhibit 8: Market attractiveness matrix including the sub-categories of men’s grooming, skin care and fragrances ................................................................................................... 6

Exhibit 9: Skin care market trends and insights ............................................................... 6

Exhibit 10: Men’s grooming market trends and insights .................................................. 7

Exhibit 11: Skin care distribution channels ...................................................................... 7

Exhibit 12: Men’s grooming distribution channels ........................................................... 8

Exhibit 13: Total population in Portugal in 2015 and 2020 .............................................. 8

Exhibit 14: Male population in Portugal in 2015 and 2020 ............................................... 9

Exhibit 15: Consumer expenditure in 2015 and 2020 ....................................................... 9

Exhibit 16: Consumer expenditure on personal care in 2015 and 2020 .......................... 10

Exhibit 17: Top 20 men's grooming brands in Portugal by market share ...................... 10

Exhibit 18: First qualitative research ............................................................................. 11

Exhibit 18.1: Sample ....................................................................................................... 11 Exhibit 18.2: Interview Guide .................................................................................................. 12 Exhibit 18.3: Insights from the 1st qualitative interview .......................................................... 14

Exhibit 19: Quantitative research ................................................................................... 17 Exhibit 19.1: Sample ................................................................................................................ 17

Exhibit 19.2: Quantitative research questionnaire ......................................................... 18 Exhibit 19.3: Quantitative research findings ........................................................................... 23

Exhibit 19.3.1: Shaving routine ................................................................................................. 23 Exhibit 19.3.2: Products most consumed ................................................................................. 24

Exhibit 19.3.3: Motivations to buy men’s grooming products ................................................ 25 Exhibit 19.3.4: Purchasing behaviour – Private labels and openness to new brands ........... 25 Exhibit 19.3.5: Most valued characteristics .............................................................................. 26 Exhibit 19.3.6: New concept perceptions .................................................................................. 26 Exhibit 19.3.7: Renova’s brand awareness and brand image ................................................. 28

Exhibit 20: Second qualitative research .......................................................................... 30 Exhibit 20.1: Sample ................................................................................................................ 30 Exhibit 20.2: Interview guide ................................................................................................... 30

Exhibit 21: Direct and indirect competitors of Renova Men .......................................... 31

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Exhibit 22: Perceptual map ............................................................................................. 31

Exhibit 23: Positioning statement per product ............................................................... 32

Exhibit 24: Brand Identity Prism of Renova Men .......................................................... 33

Exhibit 25: Differences between natural and organic ingredients .................................. 33

Exhibit 26: Artistic packaging example .......................................................................... 34

Exhibit 27: Package shape and size ................................................................................. 34

Exhibit 28: Value Pricing Thermometer ......................................................................... 35

Exhibit 29: Main assumptions for Pricing Strategy ........................................................ 35

Exhibit 30: TEV for each SKU ........................................................................................ 36

Exhibit 31: PV for each SKU ......................................................................................... 37

Exhibit 32: PVP + Retail Price + Sourcing costs’ Calculations ....................................... 37

Exhibit 33: Renova’s presence in Modern Retailing ....................................................... 38

Exhibit 34: Channel structure ......................................................................................... 39

Exhibit 35: Demand-Side Gaps ....................................................................................... 39

Exhibit 36: Behavioural Sequence Model (BSM) ............................................................ 40

Exhibit 37: Rossiter-Percy Grid for Renova Men ........................................................... 40

Exhibit 38: IMC Strategy Overview ............................................................................... 41

Exhibit 39: Overall Marketing Budget ........................................................................... 41

Exhibit 40: Above the line communications budget 2019 ............................................... 42

Exhibit 41: Above the line communications budget 2020 ............................................... 43

Exhibit 42: Above the line campaign schedule January 2019 – June 2019 ..................... 44

Exhibit 43: Above the line campaign schedule July 2019 – December 2019 ................... 45

Exhibit 44: Above the line campaign schedule January 2020 – June 2020 ..................... 46

Exhibit 45: Above the line campaign schedule July 2020 – December 2020 ................... 47

Exhibit 46: Promotional budget ...................................................................................... 47

Exhibit 47: Promotional Schedule 2019 and 2020 ........................................................... 48

Exhibit 48: Trade ads ...................................................................................................... 49

Exhibit 49: Market size projections ................................................................................ 49

Exhibit 50: Assumptions for the market size of male anti-agers ..................................... 50

Exhibit 51: Assumptions for the market size of beard oil ............................................... 50

Exhibit 52: Market share projection by sub-category .................................................... 51

Exhibit 53: Sales Forecast ............................................................................................... 51

Exhibit 54: Cost of Goods Sold ....................................................................................... 52

Exhibit 55: P&L .............................................................................................................. 53

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Exhibit 1: Categories per industry - home care and beauty and personal care

Home Care Beauty and Personal Care Air Care Baby and Child-specific products Bleach Bath and Shower

Dishwashing Colour Cosmetics Home Insecticides Deodorants

Laundry Care Depilatories Polishes Fragrances

Surface Care Hair Care Toilet Care Men's Grooming

Oral Care Skin Care Sun Care Sets/Kits

Exhibit 2: Potential and risk variables and respective weight distribution Potential and risk variables used for the matrix that includes the categories within home care and beauty and personal care.

Variables Weight

Potential

Market Size 2015 (Retail Value RSP) 60% CAGR 2006-15 5% CAGR 2010-15 5% CAGR 2013-15 20% CAGR 2015-20 10%

Risk

Market Size (Retail Value RSP) 30% CAGR 2015-20 20% Herfindahl Index 30% Penetration of Private Labels 10% Dominance of Biggest Player 10%

Definitions Retail Value RSP: Retail Selling Price, the price to the final consumer that includes taxes and retailer and wholesaler mark-ups. CAGR: Compound Annual Growth Rate, the year-over-year growth rate of an investment over a specified period of time. Herfindahl Index: Measure of market concentration, calculated by squaring the market share of each firm competing in the market and then summing the resulting numbers. Penetration of Private Labels: Total Market Share of Private Labels. Dominance of Biggest Player: Largest Market Share (company).

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Exhibit 3: Market Attractiveness Matrix Main Categories

Exhibit 4: Laundry care brand shares

Source: Euromonitor International

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Exhibit 5: Laundry care market trends and insights

Laundry Care – Market Trends and Insights Category Characteristics Further Trends Very big market size of €276,9 million in 2015

Low predicted CAGR of 0,1% for period 2015-2020

Among most promoted FMCG category: Unsustainable levels of promotional activity (50-60% discounts)

Trend towards sophisticated options and high level of product innovation

Category led by few large MNC’s (Unilever and Reckitt Benckiser), with a C4* of 73% Conclusion: Difficult for newcomer brands to enter category. Exclusion from further analysis.

*C4 – Concentration Ratio of a category, measured by the sum of the market share of the four biggest companies in the category.

Exhibit 6: Sub-categories within skin care, men’s grooming and fragrances

Skin Care Men’s Grooming Fragrances Firming/Anti-Cellulite

Body Care Men's Post-Shave Mass Men’s Fragrances

General Purpose Body Care Men's Pre-Shave Premium Men’s Fragrances Acne Treatments Men's Razors and Blades Premium Woman’s Fragrances

Face Masks Men's Bath and Shower Premium Unisex Fragrances Facial Cleansers Men's Deodorants Premium Fragrance Sets/ Kits

Facial Moisturisers Men's Hair Care Mass Woman’s Fragrances Lip Care Men's Skin Care Mass Unisex Fragrances

Anti-Agers Mass Fragrance Sets/ Kits Toners

Premium Hand Care Mass Hand Care

Exhibit 7: Potential and risk variables and respective weight distribution Potential and risk variables used for the matrix that includes the sub-categories of skin care, men’s grooming and fragrances.

Variables Weight

Potential

Market Size 2015 (Retail Value RSP) 50% CAGR 2010-15 10% CAGR 2013-15 10% CAGR 2015-20 30%

Risk Market Size (Retail Value RSP) 30% CAGR 2015-20 70%

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Exhibit 8: Market attractiveness matrix including the sub-categories of men’s grooming, skin care and fragrances

Exhibit 9: Skin care market trends and insights

Skin Care – Market Trends and Insights Category Characteristics Further Trends Very big market size of €325,4 million in 2015

Predicted CAGR of 2,53% for period 2015-2020

Highly developed category for female products

Trend towards sophisticated options and high level of product innovation

Very intense competition: a lot of mass brands accounting for 69% of the skin care sales in 2015

Trend toward an intense competition between the skin care players

Channel preference for buying in pharmacies/drugstores regarding facial skin care products

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Exhibit 10: Men’s grooming market trends and insights

Men’s Grooming – Market Trends and Insights Category Characteristics Further Trends Current market size of €233,5 million Predicted CAGR of 1,73% for period 2015-

2020 Razors and Blades account for biggest portion which is led by Gillette (P&G)

Expected market size of €254 million in 2020

Outside of Razors and Blades the market is rather fragmented With regard to skin products the brands Nivea, and to a lesser extent L’Oréal, have the biggest shares The category is not very developed except for shaving and less segmented when compared to female market Strong potential for development

Exhibit 11: Skin care distribution channels


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Exhibit 12: Men’s grooming distribution channels


Exhibit 13: Total population in Portugal in 2015 and 2020

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Exhibit 14: Male population in Portugal in 2015 and 2020

Exhibit 15: Consumer expenditure in 2015 and 2020

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Exhibit 16: Consumer expenditure on personal care in 2015 and 2020

Exhibit 17: Top 20 men's grooming brands in Portugal by market share

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Exhibit 18: First qualitative research

Exhibit 18.1: Sample

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Exhibit 18.2: Interview Guide

Questionário de Pré-recrutamento: Por favor responda às seguintes questões. Nome: E-mail: 1. Género: 2. Idade: 3. Nível de escolaridade e profissão: 4. Estado civil: 5. Viveu em Portugal nos últimos 2 anos? 6. Geralmente usa produtos para pele? 7. É responsável por pelo menos 50% das compras de supermercado em sua casa? 8. Quais destas marcas conhece (pelo menos o nome)?

9. Já comprou produtos de higiene masculina de alguma destas marcas nos últimos 6 meses? Se sim, quais produtos e respetivas marcas?

Obrigada! In-Depth Interview:

1) Pode me descrever a sua rotina de higiene/beleza masculina? (Dar exemplo da barba e não esquecer de mencionar sobre desodorizantes e perfumes)

• Costuma fazer a barba todos os dias? Usa máquina ou lâmina? • Preocupa-se com a sua pele? • O que costuma fazer para cuidar da sua pele? • Que tipo de produtos costuma comprar para a sua higiene? • Usa desodorizante e perfume todos os dias? • Que atributos valoriza nesses produtos?

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2) Quais as marcas que compra (perguntar para produtos de cara, como desodorizantes e perfume)?

• Porquê?? • O que é que mais valoriza nessas marcas? Preço? Qualidade? comunicação?

3) Costuma prestar atenção às embalagens?

4) Compra sempre a mesma marca, ou gosta/está aberto a experimentar novas?

5) Considera o preço um fator que influencia a sua decisão de compra? E a qualidade do produto

(ingredientes)?

6) Qual a sua opinião em relação a esta marcas? (Mencionar Nivea, Gillette, L’Oréal, etc).

VALUE PROPOSITION:

O que acha de haver uma linha completa de produtos como after-shave, desodorizante, óleo para barba, creme de cara, perfume; em que a embalagem de cada um desses produtos teria uma cor específica, de maneira a que não fosse necessário ter de olhar para as prateleiras a procurar pois seria algo automático? A somar-se, o cheiro dos produtos seria desenhado especificamente para homem, e não teria o cheiro a rosas que estes produtos costumam ter. Ainda, seria composto por ingredientes naturais. No fundo seria: “A sua fragrância, a sua cor! Que o tornariam no homem mais sexy à face da terra.” O benefício seria ter algo conveniente no supermercado, com qualidade de confiança e desenhado a pensar no cuidado dos homens.

• Como se sente em relação a este conceito? (é indiferente porque já há marcas a fazer isso? Não traz nada de novo? Vê isso como algo premium e que seria caro?...)

• Acha que experimentaria os produtos? • Por palavras suas, pode-me dizer o que gosta mais neste produto? • Por palavras suas, quais seriam as coisas que melhorava nesta ideia? • Que marcas acha que poderiam estar por de trás desta ideia? Porquê?

Renova perceptions + projective technique:

1) Conhece a marca Renova? 2) Que característica associa à marca? 3) Se a marca fosse uma pessoa, como seria?

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Exhibit 18.3: Insights from the 1st qualitative interview

Topic being covered

Sub-topic being covered

Answers Quotes

Present Consumption

Hygienic Routine

7 out of 12 use facial moisturiser every day, and 5 out of 12 use after-shave; 6 out of 12 respondents do not shave every day; 5 out of 12 use body moisturiser, although not every day; 3 out of 12 use some kind of facial cleanser; All respondents use deodorant and fragrance every day; None use oil for beard.

“I wake up, take a shower, shave with an electric machine, put after-shave cream, roll-on deodorant, and in the end fragrance. Sometimes I use body moisturizer, maybe two times a week.“ (Male, 36 years old)

Products most consumed

Deodorant (12/12) Fragrance (12/12) Facial Moisturiser (7/12) Pre-Shave (6/12) After-Shave (5/12) Body Moisturiser (5/12) Men’s Bath and Shower (3/12) Exfoliator and Cleanser (3/12) Anti-aging (1/12)

Products’ Decision Criteria

11 out of 12 respondents mentioned necessity as the reason to purchase; 3 out of 12 mentioned the smell as the reason; 1 out 12 mentioned appearance as the reason.

“I use those products because I feel the necessity to, otherwise my skin will dry up.“ (Male, 25 years old)

Products’ Valued Characteristics

10 out 12 mentioned quality/final result; 9 out of 12 respondents mentioned the smell; 3 out of 12 mentioned brand; 1 out of 12 mentioned price.

"I value the smell a lot! Ah, and the quality and the texture of the moisturizer, because I do not like the ones that are very greasy and thick.” (Male, 25 years old)

Most Consumed Brands

Nivea, Gillette, Axe, Dove, Boticário, Skino, L’Oreal

Brand’s Decision Criteria

9 out of 12 respondents referred the quality/final result; 2 out 12 referred the

"Price and quality matters, but advertising is also very important. When I'm searching

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Topic being covered


Answers Quotes

familiarity with the brand; 2 out of 12 referred friends’ recommendations; 2 out of 12 referred the communication.

for a product I also like to hear recommendations from friends." (Male, 25 years old)

Brand’s Valued Characteristics

9 out of 12 respondents referred the quality/final result; 5 out of 12 referred trusted well known brand; 4 out of 12 referred the smell 2 out 12 referred the communication; 2 out of 12 referred the price; 1 out of 12 referred innovation.

"I like the smell. And the brand personality. Also, I value the communication a lot. Let's see: a good communication is 70% for the success of a brand; but of course that in the end the brand has to be good.“ (Male, 42 years old)

Product Perceptions

Men’s Grooming Products

11 out of 12 respondents mentioned that quality is very important in these products; 6 out 12 said they pay big attention to the package and that it is something very important; 5 out of 12 mentioned they are loyal to their brands and do not change very often; 1 out of 12 mentioned price as something to take into consideration.

"Yes, it influences me a lot because the image is very important. A nice package is important. If I do not feel attracted by the package I do not even get closer.“ (Male, 55 years old) "Quality is very important. And I like to think I have access to good quality products in the supermarket.“ (Male, 25 years old)

Value Proposition

Feeling about the concept

9 out of 12 respondents have a positive feeling about the concept; 3 out of 12 respondents said they don’t see anything new about it and mentioned that other brands already do it; 9 out of 12 said they would try the products of the brand; 2 out of 12 said they won’t try; 1 out of 12 does no have an opinion about the trial.

"I don't think I would adopt it because I associate a shaving product with a brand with shaving products, a moisturiser cream with a hydrating brand and so on. Ah, and by the way I think this already exists, that's not new.“ (Male, 53 years old)

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Topic being covered


Answers Quotes

Concept Valued Characteristics

8 out of 12 respondents referred colours as a valued attribute; 3 out of 12 mentioned the package shape; 2 out of 12 mentioned the natural ingredients; 2 out of 12 mentioned the fact that is designed focused only on men; 2 out of 12 mentioned the fact that is a complete line under the same brand; 1 out of 12 mentioned the fragrance; 1 out of 12 mentioned the convenience.

"Having a complete line is a great advantage, because if you buy a certain brand, probably you’ll buy more than one product of that brand.“ (Male, 33 years old) “I believe all the concept facilitates going grocery shopping and make it less time costly. which facilitates the decision process, especially for men.“ (Male, 26 years old)

Suggestions 2 out of 12 highlighted the fact of being a concept focused solely on men; 2 out of 12 suggested travel kits; 1 out of 12 suggested products with no alcohol; 1 out of 12 suggested sets in the launch period; 1 out of 12 suggested the fragrance to be strong, with personality; There was no consensus regarding the shape being the same for all products, or different for all.

"Something I always think about is travel kits with products in small sizes (100ml max). (…) Men’s products are still not taking into consideration of today’s necessity of having travel sizes.“ (Male, 55 years old) "I wouldn't change anything, but I would advise for the brand not go for other segments, but to be focused on men. We need it!“ (Male, 25 years old)

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Exhibit 19: Quantitative research Exhibit 19.1: Sample

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Exhibit 19.2: Quantitative research questionnaire Q1 Sexo m Masculino m Feminino Q2 Idade m 25-34 m 35-45 m Acima de 45 Q3 Zona de Residência m Urbana m Rural Q4 Estado Civil m Solteiro m Casado m Divorciado Q5 Nível de Educação m 12º ano ou inferior m Curso Superior m Mestrado m Doutoramento m Outro Q6 Qual o seu nível de familiaridade com produtos de Higiene e Beleza masculinos? m Extremamente familiar m Relativamente familiar m Neutro m Pouco familiar m Nada familiar

Q7 Costuma fazer a barba ou costuma mantê-la? m Faço a barba m Mantenho a barba m Ambas

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Q8 Caso faça a barba, como a faz? m Lâmina de barbear m Máquina de barbear m Outro ____________________ Q9 Com que frequência se barbeia? m Todos os dias m 2 a 3 vezes por semana m 1 vez por semana ou menos m Não me barbeio Q10 Quais dos seguintes produtos utiliza pelo menos uma vez por semana? q Espuma/gel/creme de barbear q After-shave q Creme hidratante facial q Creme anti-idade q Óleo para barba q Desodorizante q Creme corporal q Sabonete q Gel de Banho q Perfume

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Q11 Relativamente aos seguintes produtos, qual a maior motivação de compra? Seleccione no máximo 2 respostas por produto.

'Compro porque preciso'

'Compro porque melhora a

minha aparência'

'Compro porque me sinto bem a

usá-lo'

'Compro porque quero cheirar bem'

Não uso o produto

Espuma/gel/creme de barbear q q q q q

After-shave q q q q q Creme hidratante

facial q q q q q

Creme anti-idade q q q q q Óleo para barba q q q q q Desodorizante q q q q q Creme corporal q q q q q

Sabonete q q q q q Gel de banho q q q q q

Perfume q q q q q Q12 Relativamente aos seguintes produtos, em quais consideraria comprar Marcas Brancas (marcas de supermercado, ex: Pingo Doce)?

Nunca Raramente Às vezes Regularmente Sempre Não uso o produto

Espuma/gel/creme de barbear m m m m m m

After-shave m m m m m m Creme hidratante

facial m m m m m m

Creme anti-idade m m m m m m Óleo para barba m m m m m m Desodorizante m m m m m m

Creme Corporal m m m m m m Sabonete m m m m m m

Gel de Banho m m m m m m Perfume m m m m m m

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Q13 Quão receptivo é a experimentar novas marcas de Cuidados de Higiene e Beleza masculinos?

Nada receptivo (sou leal à marca que

uso)

Pouco receptivo

Moderadamente receptivo

Muito receptivo

Extremamente receptivo (não

sou leal a nenhuma marca)

Não uso o produto

Espuma/gel/creme de barbear m m m m m m

After-shave m m m m m m Creme hidratante

facial m m m m m m

Creme anti-idade m m m m m m Óleo para barba m m m m m m Desodorizante m m m m m m Creme corporal m m m m m m

Sabonete m m m m m m Gel de Banho m m m m m m

Perfume m m m m m m

Q14 Na escolha de produtos de cuidado pessoal, qual a importância dos seguintes factores? 1- Não é importante; 5- É muito importante

1 2 3 4 5

Preço baixo m m m m m Reputação da

marca m m m m m

Embalagem m m m m m Fragrância m m m m m

Fácil acessibilidade

(supermercado) m m m m m

Qualidade m m m m m

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Q15 Gostaríamos de apresentá-lo a um novo conceito: Imagine que uma marca se propunha a lançar uma linha de Cuidados de Higiene e Beleza desenhada especialmente para homens, com produtos como after-shave, creme hidratante, desodorizante e óleo para barba, entre outros. Nesta linha: 1) A embalagem de cada produto teria uma cor diferente, por forma a facilitar a sua identificação nas prateleiras. 2) As embalagens apresentariam uma forma e design diferenciado, característico da marca, em que a forma seria transversal a todos os produtos. 3) A fragrância seria a mesma para todos os produtos e seria desenvolvida especificamente para homens. 'Uma linha única e completa a pensar exclusivamente nos homens','A sua fragrância, a sua forma, as suas verdadeiras cores', 'O homem mais sexy do mundo'. Esta linha ofereceria produtos de confiança, de fácil acessibilidade (supermercados), com qualidade e pensados exclusivamente para homens. Qual é a sua primeira reação em relação a este conceito? m Muito positiva m Moderadamente positiva m Neutra m Moderadamente negativa m Muito negativa Q16 Quão inovador considera este conceito? m Extremamente inovador m Muito inovador m Relativamente inovador m Não é especialmente inovador m Não é de todo inovador Q17 Quando pensa neste conceito, considera que precisa de uma linha de produtos com estas características? m Definitivamente sim m Provavelmente sim m Neutro m Provavelmente não m Definitivamente não Q18 Se estes produtos estivessem disponíveis actualmente, que produtos desta linha compraria? q Espuma/gel/creme de barbear q After-shave q Creme hidratante facial q Creme anti-idade q Óleo para a barba q Desodorizante q Creme corporal q Sabonete q Gel de banho q Perfume q Nenhum Q19 Caso não esteja interessado nesta linha de produtos, qual o porquê desse desinteresse? q Não preciso de uma linha assim q Não quero uma linha assim q Estou satisfeito com as marcas que existem actualmente q Não consigo comprar uma linha como esta q Não estou disposto a pagar por uma linha como esta

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Q20 O que mais gostou neste conceito? q As cores q Qualidade q Embalagens q Fragrância especialmente desenvolvida para homens q O facto de ser uma linha com uma grande variedade de produtos q Outro: ____________________ Q21 O que melhoraria neste conceito? Q22 Conhece a marca portuguesa Renova? m Sim m Não Q23 Que características associa à marca Renova? Seleccione as adequadas. q Inovadora q Divertida q Jovem q Antiga q Enfadonha q Sexy q Conservadora q Simples q Papel higiénico q Guardanapos q Outra: ____________________ Q24 Por palavras suas, como descreveria a Renova?

Exhibit 19.3: Quantitative research findings Exhibit 19.3.1: Shaving routine

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Exhibit 19.3.2: Products most consumed

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Exhibit 19.3.3: Motivations to buy men’s grooming products

Exhibit 19.3.4: Purchasing behaviour – Private labels and openness to new brands

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Exhibit 19.3.5: Most valued characteristics

Exhibit 19.3.6: New concept perceptions

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Exhibit 19.3.7: Renova’s brand awareness and brand image

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In your words, how would you describe Renova?

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Exhibit 20: Second qualitative research Exhibit 20.1: Sample

Exhibit 20.2: Interview guide In this research similar products from competitor brands and their prices were shown in order to guide the respondents. For each SKU the following questions were made, each one presenting a scale as a guidance:

1) About what price would you expect to see this product offered for? 2) At what price would the product start to look so cheap that it could not possibly be of

good quality? 3) At what price would the product start to look too expensive?

38%

13%

50%

Age Segments

25-‐34 35-‐45 >45

36%

57%

7%

Level of Education

Undergraduate Graduate Secondary

44%

6%

50%

Marital Status

Married Divorced Single

15%

7%

29%7%

14%

14%

7%7%

Current Ocupation

Pharmacist Architect Manager

IT PT Student

Engineer Secretary

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Exhibit 21: Direct and indirect competitors of Renova Men *Note: The brands considered as indirect competitors represent the brands with highest share in the different sub-categories (excluding men’s grooming brands) offering the same products as RM, outside the men’s grooming category (Deodorants, Bath and Shower and Skin Care).

Direct Competitors Indirect Competitors Functionality Experience

-‐ Nivea for Men -‐ Dove Men -‐ Gillette -‐ L’Oréal Men Expert -‐ Private Labels

-‐ Axe -‐ Old Spice

-‐ Nivea -‐ Dove -‐ Rexona -‐ Palmolive -‐ L’oreal Dermo-

expertise -‐ Vichy -‐ Nivea Visage -‐ Private Labels

Exhibit 22: Perceptual map

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Exhibit 23: Positioning statement per product

To 25-45 years old Portuguese men, well being and outer appearance

concerned FOR: Renova Men is a brand of

Beard Oil Men’s Post-Shave

Men’s Facial Moisturizer

Men’s anti-ager

POP that Makes beards shiny, soft and healthy

Soothes and repairs irritated skin

Makes the skin look good through protection, and healthier

Prevents and reduces wrinkles and fatigue

POD Inspires men to stay true to themselves and offers a pleasurable experience that appeals to senses

RTB due to the

Liberated masculinity approach, colourful and artistic packaging, the enjoyable and compatible fragrance between the products and its natural ingredients

To 25-45 years old Portuguese men, well being and outer appearance

concerned FOR: Renova Men is a brand of

Men’s Deodorant Men’s Bath and Shower

Men’s Body Moisturizer

Men’s Pre-Shave

POP that Offers pleasant fragrance and long lasting protection against odours

Ensures cleanliness

Protects and avoids dry skin, giving a good and healthy look

Provides a comfortable and refreshing shaving experience, avoiding dry and irritated skin after shaving

POD Inspires men to stay true to themselves and offers a pleasurable experience that appeals to senses

RTB due to the

Liberated masculinity approach, colourful and artistic packaging, the enjoyable and compatible fragrance between the products and its natural ingredients

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Exhibit 24: Brand Identity Prism of Renova Men

Exhibit 25: Differences between natural and organic ingredients

Natural Ingredients Organic Ingredients

- Not highly regulated

- Not altered chemically or synthesized

- Derived from plants and animals

- Highly regulated

- Organically farmed ingredients

- Sourced and produced naturally

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Exhibit 26: Artistic packaging example

*Note: The packaging images were adapted from the brand Jean Paul Gaultier to serve as inspiration only for the desired packaging design of Renova Men

Exhibit 27: Package shape and size

Package Shape Package Size Men’s Post-Shave Male body 100 ml

Oil for Beard Male body 30 ml Men’s Facial Moisturiser Cylindrical Shape 50 ml

Men’s Anti-Agers Cylindrical Shape 50 ml Men’s Body Moisturiser Male body 300 ml Men’s Bath and Shower Male body 300 ml

Men’s Deodorants Male body 50 ml roll-on; 150 ml spray

Men’s Pre-Shave Male body 200 ml

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Exhibit 28: Value Pricing Thermometer (retrieved from Dolan and Gourville, 2014)

Exhibit 29: Main assumptions for Pricing Strategy

1) The next-best alternative of Renova Men is Nivea Men, the most direct competitor

since it is the brand with the highest brand share operating in the same channel as

Renova will, and the one with a complete line of men’s grooming products, just as

Renova will have.

2) The cost of the next-best alternative was observed in three different

retailers/platforms: Continente, Pingo Doce, Jumbo. For the oil for beard, because

Renova will be the first mover in the hypermarkets and supermarkets, the cost of the

next-best alternative was observed in Barba Brada’s online store. For each product

there is a different cost of next-best alternative, which is an estimate of the several

products’ price of the brand.

3) The performance differentials estimated comparing Renova with Nivea are not

objective values, but a mix of competitive advantages mainly based in

36

transformational aspects such: is a Portuguese brand, with a long history and very high

brand awareness and familiarity among the Portuguese population, the concept is

simpler, have a convenient purchase and usage, designed specifically for men, more

compatible in terms of smell.

4) According with the information provided by João Palmeira, the Renova sales

manager, it was assumed a permanent margin of 35% for retailers.

5) It was assumed that all the retailers should be equally treated (assuming then a 35%

margin for every retailer).

6) The COGS were computed with a 35% retail margin, however, because there is a plus

of 15% for trade contract with the retailer, when selling to them we increase the price

in 15% in order to compensate for the added cost.

7) According to João Palmeira, the Renova margin will be 50%, with the exception for

the products with a competitive advantage (Oil for beard and men’s anti-agers).

Exhibit 30: TEV for each SKU

TEV Cost of next-best alternative (Nivea Men

products, Barba Brada) + Premium Men’s Post-Shave Balm | 100 ml 6,99€ + premium of 1€ = 7,99€ Men’s Post-Shave Gel | 100ml 7.49€ + premium of 1€ = 8.49€ Men’s Post-Shave Lotion | 100ml 6.79€ + premium of 1€ = 7.79€ Oil for beard | 30 ml 16,95€ + premium of 4€ = 20,95€ Men’s Facial Moisturizer Fresh | 50ml 6.99€ + premium of 1€ = 7.99€ Men’s Facial Moisturizer Sensitive skin | 50 ml 7,79€ + premium of 1€ = 8,79€ Men’s Anti-Agers 1st wrinkles | 50 ml 12,99€ + premium of 1,50€ = 14,49€ Men’s Complete Anti-Aging | 50 ml 12,99€ + premium of 1,50€ = 14,49€ Men’s Body Moisturizer Fast Dry | 300 ml 3,99€ + premium of 1€ = 4,99€ Men’s Body Moisturizer Sensitive Skin | 300 ml 3,99€ + premium of 1€ = 4,99€ Men’s Bath and Shower Extra Fresh | 300 ml 2,80€ + premium of 1€ = 3,80€ Men’s Bath and Shower Sensitive Skin | 300 ml 2,80€ + premium of 1€ = 3,80€ Men’s Deodorants, Roll-on | 50 ml 3,05€ + premium of 1€ = 4,05€ Men’s Deodorants, Spray | 150 ml 3,29€ + premium of 1€ = 4,29€ Men’s Pre-shave Gel | 200 ml 3,99€ + premium of 1€ = 4,99€ Men’s Pre-shave foam | 200 ml 2,99€ + premium of 1€ = 3,99€

37

Exhibit 31: PV for each SKU

PV Cost of next-best alternative (Nivea products, Barba

Brada) + Perceived Premium Men’s Post-Shave Balm | 100 ml 6,99€ + perceived premium of 0,6€ = 7,59€ Men’s Post-Shave Gel | 100 ml 7.49€ + perceived premium of 0.6€ = 8.09€ Men’s Post-Shave Lotion | 100ml 6.79€ + perceived premium of 0.6€ = 7.39€ Oil for beard | 30 ml 16,95€ + perceived premium of 2€ = 18,95€ Men’s Facial Moisturizer Fresh | 50 ml 6.99€ + perceived premium of 0,6€ = 7.59€ Men’s Facial Moisturizer Sensitive Skin | 50 ml 7,79€ + perceived premium of 0,6€ = 8,39€ Men’s Anti-Agers 1st wrinkles | 50 ml 12,99€ + perceived premium of 1,1€ = 14.09€ Men’s Complete Anti-aging | 50 ml 12,99€ + perceived premium of 1,1€ = 14.09€ Men’s Body Moisturizer Fast Dry| 300 ml 3,99€ + perceived premium of 0,6€ = 4,59€ Men’s Body Moisturizer Sensitive Skin | 300 ml 3,99€ + perceived premium of 0,6€ = 4,59€ Men’s Bath and Shower Extra Fresh | 300 ml 2,80€ + perceived premium of 0,6€ = 3,40€ Men’s Bath and Shower Sensitive Skin | 300 ml 2,80€ + perceived premium of 0,6€ = 3,40€ Men’s Deodorants, Roll-on | 50 ml 3,05€ + perceived premium of 0,6€ = 3,65€ Men’s Deodorants, Spray | 150 ml 3,29€ + perceived premium of 0,6€ = 3,89€ Men’s Pre-shave gel | 200 ml 3,99€ + perceived premium of 0,6€ = 4,59€ Men’s Pre-shave foam | 200 ml 2,99€ + perceived premium of 0,6€ = 3,59€

Exhibit 32: PVP + Retail Price + Sourcing costs’ Calculations

Variables

Post-Shav

e Balm

Post-Shave Gel

Post-Shave Lotion

Oil for

beard

Facial Moisturize

r Fresh care

Facial Moisturizer

sensitive skin

Anti-agers

1st wrinkle

s

Complete Anti-Aging

Recommended price (PVP) 6,99€ 7,29€ 6,99€

14,00€ 7,79€ 8,29€ 10,75€ 10,75€

Price w/o VAT 5,68€ 5,92€ 5,68€ 11,38

€ 6,34€ 6,74€ 8,74€ 8,74€ Retail Margin 35% 35% 35% 35% 35% 35% 35% 35% VAT 23% 23% 23% 23% 23% 23% 23% 23% Price to Retail 3,69€ 3,85€ 3,69€ 7,40€ 4,12€ 4,38€ 5,68€ 5,68€ Renova Margin 50% 50% 50% 80% 50% 50% 60% 60% Sourcing Costs 1,85€ 1,93€ 1,85€ 1,48€ 2,06€ 2,19€ 2,33€ 2,33€

38

Variables

Body Moist.

fast dry

Body Moist.

Sensitive skin

Bath and

Shower extra fresh

Bath and Shower sensitive

skin

Deodorant roll-on

Deodorant spray

Pre-Shave

Gel

Pre-Shave foam

Recommended price (PVP) 4,29€ 4,29€ 3,00€ 3,00€ 3,00€ 3,49€

4,59€

2,99€

Price w/o VAT 3,49€ 3,49€ 2,44€ 2,44€ 2,44€ 2,84€

3,73€

2,43€

Retail Margin 35% 35% 35% 35% 35% 35% 35% 35% VAT 23% 23% 23% 23% 23% 23% 23% 23% Price to Retail 2,27€ 2,27€ 1,59€ 1,59€ 1,59€ 1,84€

2,43€

1,58€

Renova Margin 50% 50% 50% 50% 50% 50%

50%

50%

Sourcing Costs 1,13€ 1,13€ 0,79€ 0,79€ 0,79€ 0,92€

1,21€

0,79€

Exhibit 33: Renova’s presence in Modern Retailing

Retailers Number of Stores

Cash-and-Carry Makro 10 Recheio 36

Hypermarket

Pingo Doce 9 E.Leclerc 20

Jumbo 21 Continente 38

Supermarket

Pingo Doce 400 Lidl 245

Dia/Minipreço 576 Pão de Açúcar 11

Modelo 135 Continente Bom Dia 85

El Corte Inglés 5 Intermarche 170

39

Exhibit 34: Channel structure

Exhibit 35: Demand-Side Gaps

Segment Bulk Breaking

Spatial Convenience

Waiting or

Delivery Time

Breadth of Variety and

Depth of Assortment

Customer Service

Information Provision

Major channel for the segment

Monthly haulers SOS=SOD SOS<SOD SOS=SOD SOS=SOD SOS=SOD SOS<SOD

Supermarkets and

Hypermarkets

Frequent shoppers SOS=SOD SOS<SOD SOS=SOD SOS<SOD SOS=SOD SOS<SOD

Supermarkets and Small

stores Variety seekers SOS=SOD SOS=SOD SOS=SOD SOS<SOD SOS=SOD SOS<SOD Modern

Retailers

Simple’s the Best SOS=SOD SOS=SOD SOS=SOD SOS=SOD SOS=SOD SOS=SOS

Supermarkets and Small

stores

40

Exhibit 36: Behavioural Sequence Model (BSM) What Need arousal Information

search and evaluation of alternatives

Choice Usage

Who • Men themselves (initiator) partner such as wife (initiator and influencer)

• Members of peer group such as family, friends or work colleagues (initiator and influencer)

• Men themselves (influencer)

• Peers (influencers)

• Men themselves (decider and purchaser)

• Partners such as wife or girlfriend of men (decider and purchaser)

• Men themselves (user)

Where • Retailer stores such as supermarket or hypermarkets

• Home

• Retailer stores • Home • Online

• Retail store

• Home • Gym • Hotel room • Bathroom

When • During weekly routine grocery shopping

• At point of purchase while shopping

• Instant when at point of purchase

• Usually after shower as part of the morning routine

How • At home need arises for men to replenish a product

• At store need arises to try out a new brand

• Evaluating own preference (brand recall)

• Examining products at store (design, price etc.)

• Asking peers

• Compare what is offered at the store

• Based on previous purchase

• Trial of product • Brand remains in consideration set if satisfied after trial

Exhibit 37: Rossiter-Percy Grid for Renova Men

41

Exhibit 38: IMC Strategy Overview

Exhibit 39: Overall Marketing Budget

Year 2019 2020 2021 2022 2023 2024 Communication budget (35%) 245.000 € 175.000 € 190.054 € 187.485 € 110.981 € 115.370 € Consumer promotions (5%) 35.000 € 25.000 € 27.151 € 26.784 € 15.854 € 16.481 € Trade Promotions and listing fees (60%) 420.000 € 300.000 € 325.808 € 321.402 € 190.253 € 197.777 € Total IMC budget (100%) 700.000 € 500.000 € 543.013 € 535.670 € 317.089 € 329.628 € Percent of sales revenue 74,74% 33,86% 25,00% 20,00% 11,00% 11,00%

Marketing Budget

42

Exhibit 40: Above the line communications budget 2019

Medium Total % of TotalOnline 3.680 € 1,60%OnlineOnline 8.625 € 3,75%Social MediaSocial Media 3.680 € 1,60%Social Media 10.810 € 4,70%Social MediaSocial Media 2.300 € 1,00%Social MediaSocial MediaSocial MediaSocial Media 14.375 € 6,25%Social MediaSocial MediaPR 2.875 € 1,25%PRPR 73.600 € 32,00%Outdoor 57.500 € 25,00%Magazines 2.300 € 1,00%Direct Marketing 12.880 € 5,60%Direct Marketing 28.750 € 12,50%Direct Marketing 8.625 € 3,75%

230.000 € 100,00%

Direct Marketing Promotion team Pop-up stores/ Eventmarketing 15.000 €Consumer promotionSampling during events (launch, festivals etc.) 35.000 €

50.000 €280.000 €

Materials for direct marketing e.g. standsPop-up storesEventmarketing during music festivals

BloggersTV presencesKinect Projection Mapping launch eventBillboardsRetailer Magazines

FlickrYouTube ChannelVideos production (launch event and product demo)Renova Men Twitter channelGoogle+

Renova Men Facebook sponsored pageFacebook adsRenova Men Instagram pageRenova Men Instagram sponsored pagePinterest

2019

Above the line budget (Communications)

IC total:

Integrated communications

Media Total:

Above the line total:

Media DescriptionGoogle AdWordsRenova websiteDigital content production e.g. pictures, text, musicRenova Men Facebook page

43

Exhibit 41: Above the line communications budget 2020

Medium Media Description Total % of TotalOnline 8.000 € 5,0%OnlineOnline 2.000 € 1,3%Social MediaSocial Media 3.392 € 2,1%Social Media 24.000 € 15,0%Social MediaSocial Media 3.200 € 2,0%Social MediaSocial MediaSocial MediaSocial Media 5.000 € 3,1%Social MediaSocial MediaPOS/ online 40.000 € 25,0%PR 3.200 € 2,0%PROutdoor 48.000 € 30,0%Magazines 1.600 € 1,0%Direct Marketing 1.600 € 1,0%Direct Marketing 15.000 € 9,4%Direct Marketing 5.000 € 3,1%

160.000 € 100,00%

Direct Marketing Promotion team Pop-up stores/ Eventmarketing 15.000 €Consumer PromotionSampling during Facebook contest and events 20.000 €Consumer PromotionWinner prices for Facebook contest 5.000 €

40.000 €200.000 €

Eventmarketing during summer music festivals

Renova Men Twitter channelGoogle+Guerrilla promotions with toilet paperBloggersTV presencesBillboardsRetailer MagazinesMaterials for direct marketing e.g. standsPop-up stores

Renova Men Instagram sponsored pagePinterestFlickrYouTube ChannelDemonstration Videos production

Digital content production e.g. pictures, text, musicRenova Men Facebook pageRenova Men Facebook sponsored pageFacebook adsRenova Men Instagram page

Google AdWordsRenova website

IC total:

2020

Above the line budget (Communications)

Media Total:

Above the line total:

Integrated communications

44

Exhibit 42: Above the line campaign schedule January 2019 – June 2019

Media Description January February March April May (launch) June

Google AdWords

Renova website Heavy publishing after launch event

Digital content production e.g. pictures etc.Renova Men Facebook page Heavy publishing after launch event

Renova Men Facebook sponsored page attract followers

Facebook ads show products

Renova Men Instagram page Heavy publishing after launch event

Renova Men Instagram sponsored page attract followers

Pinterest

Flickr

YouTube Channel

Videos production

Renova Men Twitter channel

Google+

Bloggers

TV presences after launch event

Kinect Projection Mapping launch event two weeks

Billboards 4 weeks

Retailer Magazines

Materials for direct marketing e.g. stands preparation for launch

Pop-up stores 2 weeks

Eventmarketing during music festivals

set up but not live for public


publications and reports after launch



Heavy publishing after launch event

Heavy publishing after launch event

45

Exhibit 43: Above the line campaign schedule July 2019 – December 2019

Media Description July August September October November December

Google AdWords

Renova website

Digital content production e.g. pictures etc.Renova Men Facebook pageRenova Men Facebook sponsored page

Facebook ads

Renova Men Instagram pageRenova Men Instagram sponsored page

Pinterest

Flickr

YouTube Channel

Videos production


Google+

Bloggers

TV presences

Kinect Projection Mapping launch event

Billboards 4 weeks 2 weeks

Retailer Magazines

Materials for direct marketing e.g. stands

Pop-up stores 2 weeks entire month

Eventmarketing during music festivals

continuous presence with regular postings about products and related information

promotion teams during summer music festivals


preparation next years launches


publish video from launch event and product demonstration videos





46

Exhibit 44: Above the line campaign schedule January 2020 – June 2020

Media DescriptionJanuary

(launch add. products)

February March April May June

Google AdWords support launch of the new products

Renova website

Renova Men Facebook page used as platform during contest/ Guerrilla promotion;; posting of videos and pictures related to the contest

Renova Men Facebook sponsored page

Facebook ads

Renova Men Instagram page posting of videos and pictures related to the contest

Renova Men Instagram sponsored page

Pinterest posting of videos and pictures related to the contest

Flickr posting of videos and pictures related to the contest

YouTube Channel video posts related to contest

Renova Men Twitter channel used for sharing the hashtag #feelinggoodwithRenovaMen of the contest

Google+ posting of videos and pictures related to the contest

Guerrilla promotions with toilet paper 3 months contest related to the new product launch

Bloggers occasional publications after launch

TV presences related to Facebook contest

Billboards 8 weeks with pictures from contest

Retailer Magazines

Pop-up stores

Eventmarketing summer music festivals

47

Exhibit 45: Above the line campaign schedule July 2020 – December 2020

Exhibit 46: Promotional budget

Media Description July August September October November December

Google AdWords

Renova website

Renova Men Facebook pageRenova Men Facebook sponsored page

Facebook ads

Renova Men Instagram page continuous presence with regular postings about products and related information

Renova Men Instagram sponsored page

Pinterest

Flickr

YouTube Channel product demonstration videos


Google+

Guerrilla promotions with toilet paper

Bloggers

TV presences

Billboards 2 weeks

Retailer Magazines

Pop-up stores 2 weeks 2 weeks 2 weeks

Eventmarketing summer music festivals small promotion teams during summer music festivals




48

Exhibit 47: Promotional Schedule 2019 and 2020

49

Exhibit 48: Trade ads

Exhibit 49: Market size projections

Overall market size forecast per sub-‐category

Year 2015 2019 2020 2021 2022 Oil for beards* €878.272 €939.535 €955.507 €971.750 €988.270 Men’s post-shave €23.000.000 €25.500.000 €26.300.000 €27.010.100 €27.739.373 Men's deodorants €24.000.000 €26.600.000 €27.500.000 €27.500.001 €27.500.002 Men's anti-ager* €9.630.000 €10.710.000 €10.977.750 €11.252.194 €11.533.499 Men’s facial moisturizer €6.600.000 €7.144.000 €7.301.168 €7.461.794 €7.663.262 Men's pre-shave €31.000.000 €33.200.000 €33.800.000 €34.374.600 €34.958.968 Men's bath and shower €4.300.000 €4.900.000 €5.100.000 €5.100.001 €5.100.002 Men's skin care body care €1.900.000 €2.100.000 €2.146.200 €2.193.416 €2.241.672 Total size category

€233.500.000 €249.400.000 €254.400.000 €258.724.800 €263.123.122

* assumptions for market size

50

Overall market size forecast per sub-‐category

Year 2023 2024 CAGRs

Oil for beards* €1.005.071 €1.022.157 1,70% Men's grooming category CAGR

Men’s post-shave €28.488.336 €28.972.637 2,70% Corresponding sub-cat CAGR Men's deodorants €27.500.003 €27.967.503 2,70% Corresponding sub-cat CAGR Men's anti-ager* €11.821.836 €12.022.807 2,50% Unisex anti-ager CAGR Men’s facial moisturizer €7.870.170 €8.003.963 2,20% Men's skin care CAGR Men's pre-shave €35.553.271 €36.157.676 1,70% Corresponding sub-cat CAGR Men's bath and shower €5.100.003 €5.186.703 3,50% Corresponding sub-cat CAGR Men's skin care body care €2.290.988 €2.329.935 2,20% Men's skin care CAGR

Total size category €267.596.215 €272.145.350

1,70% Men's grooming category CAGR

Exhibit 50: Assumptions for the market size of male anti-agers

Exhibit 51: Assumptions for the market size of beard oil

51

Exhibit 52: Market share projection by sub-category

Exhibit 53: Sales Forecast

52

Exhibit 54: Cost of Goods Sold

Sourcing costs

Product SKU COGS per unit Units COGS Units COGS Units COGSOil for beards 1,48 € 33.555 49.661 € 34.125 50.505 € 31.235 46.228 €Men’s post-‐shave balm 1,85 € 91.202 168.723 € 60.200 111.371 € 64.917 120.096 €Men's deodorants roll-‐on 0,79 € 66.500 52.535 € 110.000 86.900 € 115.500 91.245 €Men's deodorants spray 0,92 € 133.381 122.711 € 220.630 202.980 € 231.662 213.129 €Men anti-‐ager wrinkles reduction 1,16 € 7.659 8.884 € 15.701 18.213 €Men anti-‐ager complete 1,16 € 7.659 8.884 € 15.701 18.213 €Men’s post-‐shave gel 1,93 € 43.292 83.554 € 46.684 90.100 €Men’s post-‐shave lotion 1,85 € 45.150 83.528 € 48.688 90.072 €Men’s facial moisturizer fresh care 2,06 € 11.973 24.665 €Men’s facial moisturizer sensitive skin 2,19 € 11.251 24.640 €Men's pre-‐shave foam 1,21 € 93.613 113.271 €Men's pre-‐shave gel 0,79 € 143.707 113.528 €Men's bath and shower extra fresh 0,79 €Men's bath and shower sensitive skin 0,79 €Men's skin care body care fast dry 1,13 €Men's skin care body care sensitive skin 1,13 €

393.630 € 636.606 € 963.401 €

2019 2020 2021

Sourcing costs

Product SKU COGS per unit Units COGS Units COGS Units COGSOil for beards 1,48 € 28.236 41.790 € 28.716 42.500 € 29.204 43.223 €Men’s post-‐shave balm 1,85 € 69.844 129.212 € 74.991 138.733 € 77.924 144.159 €Men's deodorants roll-‐on 0,79 € 121.000 95.590 € 126.500 99.935 € 131.447 103.843 €Men's deodorants spray 0,92 € 242.693 223.278 € 253.725 233.427 € 263.648 242.556 €Men anti-‐ager wrinkles reduction 1,16 € 16.630 19.290 € 17.595 20.411 € 18.454 21.406 €Men anti-‐ager complete 1,16 € 16.630 19.290 € 17.595 20.411 € 18.454 21.406 €Men’s post-‐shave gel 1,93 € 50.228 96.939 € 53.929 104.082 € 56.038 108.153 €Men’s post-‐shave lotion 1,85 € 52.383 96.909 € 56.243 104.050 € 58.443 108.119 €Men’s facial moisturizer fresh care 2,06 € 20.166 41.543 € 21.216 43.705 € 22.091 45.506 €Men’s facial moisturizer sensitive skin 2,19 € 18.950 41.501 € 19.936 43.661 € 20.758 45.460 €Men's pre-‐shave foam 1,21 € 152.327 184.315 € 162.662 196.821 € 169.366 204.933 €Men's pre-‐shave gel 0,79 € 233.839 184.733 € 249.705 197.267 € 259.997 205.397 €Men's bath and shower extra fresh 0,79 € 21.250 16.788 € 30.600 24.174 € 31.985 25.268 €Men's bath and shower sensitive skin 0,79 € 21.250 16.788 € 30.600 24.174 € 31.985 25.268 €Men's skin care body care fast dry 1,13 € 5.225 5.905 € 10.681 12.069 € 11.405 12.888 €Men's skin care body care sensitive skin 1,13 € 5.225 5.905 € 10.681 12.069 € 11.405 12.888 €

1.219.776 € 1.317.488 € 1.370.473 €

20242022 2023

Year 2019 2020 2021 2022 2023 2024Sourcing costs 393.630 € 636.606 € 963.401 € 1.219.776 € 1.317.488 € 1.370.473 €Transportation costs (5%) 19.681 € 31.830 € 48.170 € 60.989 € 65.874 € 68.524 €product expiry losses (5%) 19.681 € 31.830 € 48.170 € 60.989 € 65.874 € 68.524 €Total COGS 432.993 € 700.267 € 1.059.741 € 1.341.753 € 1.449.237 € 1.507.521 €

COGS

53

Exhibit 55: P&L

P&L Renova MenInitial

Investment2019 2020 2021 2022 2023 2024

Net Sales Revenue 936.564 € 1.476.726 € 2.172.050 € 2.678.351 € 2.882.626 € 2.996.615 €Cost of Goods Sold 432.993 € 700.267 € 1.059.741 € 1.341.753 € 1.449.237 € 1.507.521 €Gross Revenue 503.571 € 776.459 € 1.112.309 € 1.336.598 € 1.433.389 € 1.489.095 €Gross Margin in % 53,77% 52,58% 51,21% 49,90% 49,73% 49,69%Marketing Costs 700.000 € 500.000 € 543.013 € 535.670 € 317.089 € 329.628 € Communication costs 245.000 € 175.000 € 190.054 € 187.485 € 110.981 € 115.370 € Consumer promotions 35.000 € 25.000 € 27.151 € 26.784 € 15.854 € 16.481 € Trade Promotions 420.000 € 300.000 € 325.808 € 321.402 € 190.253 € 197.777 €Admininstrative expenses 32.780 € 51.685 € 76.022 € 93.742 € 100.892 € 104.882 €Professional, legal and accountancy fees 103.022 € 44.302 € 43.441 € 53.567 € 57.653 € 59.932 €Operating Costs 835.802 € 595.987 € 662.475 € 682.980 € 475.633 € 494.441 €EBTDA -‐332.231 € 180.472 € 449.834 € 653.618 € 957.755 € 994.653 €Gross margin after operating expenses -‐35,47% 12,22% 20,71% 24,40% 33,23% 33,19%Depreciation 25.000 € 25.000 € 25.000 € 25.000 € 25.000 € 25.000 €Operating income (EBIT) -‐357.231 € 155.472 € 424.834 € 628.618 € 932.755 € 969.653 €Taxes (21%) 0 € 0 € 46.846 € 132.010 € 195.879 € 203.627 €Profit after Taxes (NOPLAT) -‐357.231 € 155.472 € 377.988 € 496.609 € 736.877 € 766.026 €Depreciation 25.000 € 25.000 € 25.000 € 25.000 € 25.000 € 25.000 €Operating Cash Flow -‐332.231 € 180.472 € 402.988 € 521.609 € 761.877 € 791.026 €Capex Development cost (R&D) 0 € Inventory 209.763 € other operating investments 150.000 €Net Income (FCF) -‐359.763 € -‐332.231 € 180.472 € 402.988 € 521.609 € 761.877 € 791.026 €Discounted Cash Flows (r=7%) -‐359.763 € -‐310.496 € 157.631 € 328.958 € 397.933 € 543.208 € 527.094 €NPV after 6 years 757.471 €ROI after 6 years 210,55%

Inventory:Revenues 2024 2.996.615 €Inventory cost 7% of revenues 209.763 €

2016-17 s1-18277-15-mariana lopes et al annex€¦ · exhibit 9: skin care market trends and...

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