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Cosmetics and Men Expert

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Table of Contents EXECUTIVE SUMMARY ……………………………………………………………………………………. SITUATION ANALYSIS ……………………………………………………………………………………… L’Oreal Canada – Company Profile …………………………………………………………… L’Oreal Paris Men Expert – Product Profile …………………………………………………… Men’s Cosmetics Market – Industry Overview ……………………………………………… Product Trends ……………………………………………………………………………………………… Consumer Trends ……………………………. ………………………………………………………… Customer Segmentation …………………………………………………………. …………………… Competitive Analysis ……………………………………………………………………………………. SWOT and Gap ……………………………………………………………………………………………… MARKETING PLAN ………………………………………………………………………………………………….. Marketing Objectives …………………………………………………………………………………….

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Positioning Strategy ……………………………………………………………………………………… Product ………………………………………………………………………………………………………… Price …………………………………………………………………………………………………………….. Place …………………………………………………………………………………………………………….

Promotion …………………………………………………………………………………………………… Financial Analysis ………………………………………………………………………………………… Implementation …………………………………………………………………………………………… Evaluation and Control ………………………………………………………………………………… Appendix A …………………………………………………………………………………………………………… Appendix B …………………………………………………………………………………………………………… Appendix C …………………………………………………………………………………………………………… Appendix D …………………………………………………………………………………………………………… Appendix E …………………………………………………………………………………………………………… Appendix F …………………………………………………………………………………………………………… References …………………………………………………………………………………………………………… 1 3 4 7 11 14 15 18 20 23 24 25 26 27 29 30 31 35 38 40 41 42 45 46 47 48 49 EXECUTIVE SUMMARY COMPANY AND BRAND OVERVIEW L’Oreal Canada is a leading company in the osmetic industry in Canada. The company mass-markets skin care products to men through its brand L’Oreal Paris Men Expert. Men Expert is the leader in non-luxury skin care market in Canada. MARKET The male cosmetic market has become a new opportunity for cosmetic companies as it has been experiencing great growth. Of the seven categories in male cosmetics, the one that most grew in Canada was skin-care, rising over 122% over the past five years (U. S. Commercial Service). Out of skin-care, anti-aging is the most promising segment of the market in terms of growth and profitability. OPPORTUNITY Night-usage products are a new trend in cosmetic products.

There is no such product currently in the men’s cosmetic market in Canada as there are no competitors for Men Expert within anti-aging products for men in Canada. Taking advantage of the scenario L’Oreal Canada can expand the anti-aging segment with a new offering of a nightusage anti-aging product that will help the company gain share in the men’s market. PLAN OBJECTIVES To successfully introduce the new L’Oreal Paris Men Expert line extension product “Night-to-Dawn Anti-aging” to the Canadian market, and in one year financially breakeven, achieve a wholesale revenue of C$ 1,3 million, make the product synonymous with the product category, creating a positive image of quality and increasing the brands distribution coverage to male-oriented retailers.

TARGET AND POSITIONING The product should target primarily the average Canadian male aged between 40 to 60 years who wants to look younger, and secondarily the primary target’s wife or partner. 1 The anti-aging cream should be positioned as a value product that is a pioneer in the segment, offering convenience while working towards providing younger-looking skin. MARKETING MIX The product, named Men Expert Night-to-Dawn Anti-aging would be a cream applied to the face at night-time that works while the user is asleep, resulting in youngerlooking skin. At a retail price of C$ 19. 89 the product would be sold at mass-retailers such as WalMart and Shoppers Drug Mart, as one of the cheapest options for anti-aging products for men in Canada and the only option for nigh-use.

With promotion expenses to touch C$605,934 our objective would be to build product awareness throughout Canada while creating need and stimulating market demand that are directly linked to the product. Through sales promotion, PR and advertising we would expect that the sales goal would be to touch sales of 131,200 units in the first year. EXPECTED RESULTS AND RECOMMENDATIONS The expected sales would touch C$ 1,312,000 wholesale, achieving the plan’s objectives, developing a greater competitive advantage and contributing to the growth of the company. It is highly recommended that the product be launched nationally one month before Christmas day. 2 SITUATION ANALYSIS 3 L’Oreal Canada L’Oreal S. A. is one of the largest cosmetic manufacturer and distributor in the world.

Established in 1909, it is headquartered in Clichy, France and has presence in over 130 countries worldwide with 23 global brands (Datamonitor, L’Oreal SA). In 2008 the company recorded revenues of over € 17. 5 billion (CAD$ 24. 1 billion), showing an increase of 2. 8% from 2007, and net profits of over € 1. 9 billion (L’Oreal Finance). The French company is the world leader in most of the markets it operates. L’Oreal SA is the leader in the global skin care market with 12. 5% of market share (Datamonitor, Global Skin Care), the leader in the global make-up market owning 23. 3% of the market (Datamonitor, Global Make-up) and also the world leader in the facial care market with 14. % of market share (Datamonitor, Global Facial Care). In Canada, L’Oreal S. A. operates through its subsidiary L’Oreal Canada Inc. Headquartered in Montreal, L’Oreal Canada has 1. 200 employees, operating one manufacturing plant and one distribution centre in the city (L’Oreal Canada). Industry: Type: Parent: L’OREAL CANADA INC Key facts Cosmetics Subsidiary L’Oreal S. A. Headquarter: Montreal, QC Website: Employees: www. loreal. ca 1. 200 COMPANY MISSION “The right to be beautiful day after day: L’Oreal strives to make this a reality within the reach of every woman and every man” (L’Oreal Canada). FINANCES L’Oreal Canada Inc has been growing for at least 10 years straight.

The company had profits of over C$ 105 million (€ 76. 6 million) in 2008 (L’Oreal Finance) and revenue of C$ 846 million, an increase of 2. 9% from the previous year (The Globe and Mail). See Graph 1 on next page for revenue progress. 4 Graph 1: L’Oreal Canada (Revenue in C$ million) 900 800 700 600 500 400 300 200 100 0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Source: The Globe and Mail. “L’Oreal Canada Inc Financial Profile”. 14 May 2009: Report on Business. COMPANY SITUATION in the MEN’S MARKET L’Oreal Canada is the leader of the cosmetic industry in MEN’S COSMETICS Canada offering 18 brands in the country (L’Oreal Canada). Company share 0. 8% Rank th

However, in the 2008 Canadian men’s cosmetic market L’Oreal Canada was in the 9th position with only 0. 8% of market share (Euromonitor International). For a complete list of company shares see Appendix A. 9 The low market share can be explained (Euromonitor International): Men’s grooming (pre-shave, post-shave and shaving products) accounts for over 66% of the Canadian men’s cosmetic market, which is dominated by Procter & Gamble Inc with 46. 7% of market share mostly through its brand Gillette. L’Oreal Canada has showed no growth in market share over the past years maintaining its 0. 8% share since 2006 (Euromonitor International). BRAND PORTFOLIO

L’Oreal manufactures and manages 18 brands in Canada in four main areas: consumer products, professional, luxury and active cosmetics (Hoover’s). Consumer products comprise high technology products at competitive prices distributed through mass5 market retailing channels. Active cosmetics are dermo-cosmetic products sold in pharmacies and specialist retailers and supported by advice from pharmacies and dermatologists. The Luxury division includes prestigious brands which offer customers products and premium service in department stores, specialty stores and travel retail outlets. Professional products include portfolio brands that meet the requirements of hair salons and provide customers with a wide range of innovative products (L’Oreal Canada).

BRAND PORTFOLIO IN CANADA Consumer Products L’Oreal Paris Garnier Maybelline NY Active Cosmetics Vichy La Roche-Posay Professional Redken Matrix L’Oreal Professional Kerastase Luxury Giogio Armani Biotherm Lancome Kiehl’s Shu Uemura Viktor & Rolf Diesel Ralph Lauren Cacharel Source: L’Oreal Canada (www. loreal. ca) Bolded brand names indicate men’s skin care product lines in Canada. PRODUCT LINES for MEN’S SKIN CARE L’Oreal Canada sells male skin care products in Canada under four of its brands: L’Oreal Paris with its Men Expert line, Vichy with Vichy Homme, Biotherm under Biotherm Homme and Lancome with the Lancome Men line (L’Oreal Canada). L’Oreal Canada – Brands Price Positioning Average price of products (C$) Source: see Appendix B for source. 6

While Biotherm Homme and Lancome Men are positioned as luxury brands, and Vichy Homme as a semi-luxury specialty brand, L’Oreal Paris is more accessible to the general public through mass-retailers at lower prices, beings positioned as a value brand. For a complete description of each brand (except L’Oreal Paris), product list and prices, see Appendix B. L’Oreal Paris Men Expert The L’Oreal Paris brand, as part of the Consumer Products division, is mass-marketed in Canada with lower prices at lower-end retailers, being the value brand for men’s cosmetics. Positioning: Price: Source: Well. ca Value / mass-market Average: C$ 11. 20 Range: C$ 6. 29 – C$ 15. 79 Categories: # of Products: Skin Care and Grooming (pre-shave, post-shave, shave). 15 products offered in Canada Drugstores, department stores and supermarkets.

Retailers: Wal-Mart, Zellers, Shoppers Drug Mart, Jean Coutu, Distribution: Loblaw, Sobeys, Pharma Plus, London Drugs, Uniprix, Familiprix and online at Well. ca L’Oreal Paris Men Expert line has 0. 2% share in the Canadian men’s cosmetics market taking the 20th position in the list of share per brand, which is dominated by shaving-related brands (Euromonitor International). For the complete list of competing brand’s market share in men’s cosmetics in Canada see Appendix C. MEN’S COSMETICS Brand share 0. 2% 20 Rank th 7 The Men Expert line is further divided into two sub-lines: Hydra Sensitive and Hydra : Power. For complete list of Men Expert products and prices see Appendix D.

Men Expert Hydra Sensitive For sensitive skin: – 3 grooming (pre, post post-shave and shaving) products – 1 moisturizer Men Expert Hydra Power For regular skin: – 4 grooming (pre, post post-shave and shaving) products – 2 moisturizers – 2 cleansers – 2 anti-aging product aging products – 1 eye roller Although L’Oreal Paris has low market share in the men’s cosmetic market, the Men Expert line has the highest presence in the market it competes according to field research the non-luxury market research: for men’s skin care in Canada (excluding shaving products). While the “shaving” sector is dominated by Gillette (Euromonitor International), the nonluxury skin care segment is dominated by L’Oreal Paris Men Expert.

FIELD RESEARCH – Shelf space for L’Oreal Paris Men Expert Dates Locations Share at non-luxury men’s grooming luxury Share at non-luxury men’s skin care luxury 26th and 27th of March 2010 Shoppers Drug Mart stores in Toronto 13% to 17% of shelf space 50% of shelf space (highest share) 8 LAUNCH Launch date in Canada: January 2005 (Harris 7) Men Expert was the first mass marketed line of anti-aging skin care products for men (Chakraborty 14). The line was launched in Canada with 10 products (Harris 7). Weakness: L’Oreal Paris is seen as a women’s brand since it had marketed only women’s products for decades, until 2005 when Men Expert was introduced to the market. DIVERSITY

With only 15 products, Men Expert lacks diversity when compared to more developed brands such as Biotherm: – Products for only 2 types of skin (regular and sensitive) – No segmentation based on age group However, this may also be seen as a strength: fewer number of products might facilitate product choice while a high number of similar products might confuse the consumer. The Men line had only 5 new product additions in the past 5 years, when it was launched in Canada. SPECIFICATIONS All Men Expert products contain ADS – Active Defense System. ADS is “a powerful soothing active that strengthens skin’s natural resistance” (L’Oreal Paris Canada).

The patented system, with peppermint leaf extract, “protects your skin against irritation, so you’re less likely to get redness, burning, or tightness” (L’Oreal Paris Canada). PACKAGING: the Men Expert Hydra Power line is mainly orange and gray. The Men Expert Hydra Sensitive line is predominantly cyan and gray with little orange. 9 The line’s packaging design, with bright colors, has two consequences (Seymour 10): Strenght: it stands out in the shelf when most competitors use dark monotone color in their product’s design. Weakness: it is viewed as more feminine than other brands. QUALITY The Men Expert line is considered to have good quality products for a value brand.

The cosmetic-specialized magazine Parfums Cosmetiques Actualites gave a Men Expert Eye Roll-On product a much positive review to calling it “invigorating” and “easy to apply” (“Beauty”). The Philippine newspaper Manila Bulletin mentioned that the same product “provides a refreshing, cooling effect that combats tiredlooking skin” (“Eyes”). MARKETING L’Oreal Paris Men Expert slogan: “Grooming Technology and Expertise for Men” (L’Oreal Paris Canada) L’Oreal Paris Men Expert uses mass-media to reach its audience, such as newspaper ads (Pixman) and TV commercials (Adwatch). The company also used alternative strategies such as field marketing when launching Men Expert in Canada (Pixman).

WEBSITE: Men Expert is featured as a section inside the L’Oreal Paris Canada website. SPOKESMAN: current spokesman for the Men Expert line is 44 year-old NorthAmerican actor Patrick Dempsey, indicating the brand’s current target audience to be 40+ year old men. 10 The Men’s Cosmetics Market The Canadian Male Cosmetics market includes grooming products and toiletries products destined for men and sold within Canada (U. S. Commercial Service). Market Subdivisions Men’s Cosmetics Grooming Toiletries Pre-shave Shaving Post-shave Bath and Shower Deodorants Hair Care Skin Care MARKET SIZE There are almost 17 million males in Canada (16,732,476), accounting for 49. % of the country’s total population (Statistics Canada). In Canada, consumers of male cosmetics comprise men between the ages of 18 and 65 (U. S. Commercial Service), totaling over MALE DEMOGRAPHICS CANADA Males 11 million people (Statistics Canada). The single male age group that most spends on cosmetic products is of those between 35 and 49 years of age (U. S. Commercial Service), totaling 3. 8 million people (Statistics Canada). The baby-boomers, currently aged between 50 and 65 years, have the highest level of disposable income in Canada. The men in this group are most interested in anti-ageing and sun protection products (U. S. Commercial 50 to 65 years 7 million 18 to 65 years 11 million 35 to 49 years 3. 8 million 3. 3 million Service). They total over 3. 3 million people (Statistics Canada). 11 MARKET VALUE and GROWTH According to Euromonitor (qtd. in Strauss B6), the estimated Canadian men’s ), cosmetics market value for 2008 was US$ 579 million in sales, exhibiting a growth of almost 70% from 2003. The forecast value for 2010 is US$ 591. 6 million accounting m million, for a growth of 21. 9% from 2005 (U. S. Commercial Service). The Canadian men’s cosmetic market is dominated by shaving shaving-related products with almost 60% share share. Table 1: Male cosmetic produ – Sales in Canada products

Sales and Forecast (US$ million) 2005 Men’s Cosmetics Grooming Pre-shave Shaving Post-shave Toiletries Bath and Shower Deodorants Hair Care Skin Care 485. 3 306. 6 67. 3 216. 3 22. 4 179. 3 4. 9 137. 1 26. 9 10. 4 2010 (forecast) 591. 6 352. 5 77. 8 247. 4 27. 3 239. 1 6. 4 181. 1 28. 5 23. 1 Share % 2010 100% 59. 6% 13. 2% 41. 8% 4. 6% 40. 4% 1. 1% 30. 6% 4. 8% 3. 9% Growth % 2005-2010 21. 9% 15. 0% 15. 6% 14. 4% 21. 9% 33. 4% 30. 6% 32. 1% 5. 9% 122. 1% Source: Euromonitor International qtd. in U. S. Commercial Service Graph 2: Sector % share Pre-shave; 13,2% shave; Skin Care; 3,9% Hair Care; 4,8% Shaving; 41,8% Deodorants; 30,6% Bath and Shower; 1,1% Post-shave; 4,6% Post 12 MARKET TRENDS

Of the seven categories in male cosmetics, the one that most grew in Canada was skincare, rising over 122% over the past five years (U. S. Commercial Service). Considering men’s skin-care alone, there are two identifiable market trends: anti-aging and luxury. Graph 3: Sector growth % (2005-2010) 120,0% 100,0% 80,0% 60,0% 40,0% 20,0% 0,0% Hair Care Deodorants Shaving Pre-shave Post-shave Bath and Shower Skin Care Source: see Table 1 ANTI-AGING Inside the skin-care category, facial-care products are the most lucrative, accounting for 60. 2% of the global skin-care market (Data Monitor, Global Skin Care 7) and 55. 3% ANTI-AGING Canada of the US skin care market (Data Monitor, Skin Care in the United States 7).

Of the facial-care products, antiageing are the most lucrative products, accounting for 23. 9% of the global market for facial-care (Data Monitor, Global Facial Care 7) and 49% of the US market for facial care (Data Monitor, Facial Care in the United States 7). 27% Share of Skin Care US$ 6. 26 million Value Deducing that the Canadian market shows the same characteristics of the U. S. market, the anti-aging products market in Canada can be estimated at US$ 6. 26 million in 2010, being the most promising segment of the market in terms of growth and profitability. 13 LUXURY The men’s skin care sub-sector is dominated by prestige brands (NPD Group qtd. in U. S. Commercial Service).

According to The Globe and Mail, luxury brands are growing over mass-market brands in this category, attracting the mass public to “climb the luxe ladder” and taking bigger spaces on retailer’s shelves and counters (Proulx L12). Competitive intelligence: to compete in the skin-care market, companies are investing in luxury brands. As L’Oreal markets through Biotherm and Lancome, Procter & Gamble entered the skin-care luxury market collaborating with Hugo Boss on the skin-care line Boss Skin (U. S. Commercial Service). In 2009 Procter & Gamble also acquired the luxury skin-care brand Zirh (Reuters B6). Product Trends PACKAGING In the male cosmetic market, product’s name and packaging are carried out in such a manner where it appeals to the male community. So manufacturers are launching men cosmetics with specific name and features which carry masculine appeal. Men want to see an environment clearly designed for them, it’s a sleeker, modern, masculine approach. ” (Lew 6). In terms of characteristics “the objects clear, small, pink, soft, will be considered to be rather female and the objects dark, large, blue, hard are rather male” (Tissier-Desbordes). DISTRIBUTION In order to deal with contradicting effeminate and macho values within the men’s cosmetic category, companies are taking on unusual distribution channels, putting cosmetic products in male-oriented retailers. The men’s cosmetic “O’Keeffe’s Working Hands Handcreme” in the US is being distributed through hardware and home center channels. “This strategy provides a 14 ood means of making a supposedly feminine product seem more acceptable because it is being channeled through a traditionally macho retail environment” (Pitman). NIGHT-USE PRODUCTS The night-use anti-aging technology has become a new trend in cosmetic market. The women’s market has seen launches of products like Renuvie (renuvie. com) and Prevera (prevera. net). But for the men’s market in Canada no brand has yet produced anti-aging cream for night-use (neutrogena. ca; niveaformen. ca; biotherm. ca; vichy. ca; zirh. com; ca. clarins. com; lancome. ca). How it works: this technology works efficiently in night because during the night, while the sun has set, your skin gets a rest from the harmful UV rays of the sun and is able to focus on repairing skin cells.

Advantages: it provides hydration for the skin and facilitates the regenerative process, it contains ingredients which trigger the stimulation of collagen and skin cell regeneration, it slows down the aging of skin, and it is convenient to use since it is used in the night (Night Creams). Consumer Trends The concept of men using make up can be found in old times. Various rock bands and their famous artists have always used make up, what kicked the whole concept of makeup for men. Men still look up to their favorite performers and try to follow the style. Even though the “guyliner” market is small, things have started to change dramatically, since men are being particular about their grooming. METROSEXUALITY According to Datamonitor (qtd. n Pitman), there has been a polarization in male attitudes, with the more effeminate metrosexual values now living side-by-side along more macho attitudes. The male consumer has been going through a “feminization” (Pitman) which is having big impact on consumer habits. A survey has shown that 73% 15 of European and US men said that spending time in front of the mirror was ‘important’ or ‘very important’, compared to 72% of women with the same response (Datamonitor qtd. in Pitman). AGING and SKIN HEALTH Men around the globe are showing growing concerns about skin health and aging signs. The male consumer is developing greater need for skin care and becoming more aware of skin-related issues. “Globally, the men’s rooming market continues to grow as many men are striving to take better care of their skin. The male consumer is becoming more informed about the health of his skin and how to slow the effects of aging” (Marsanico-Byrne). MALE RESISTANCE towards BUYING COSMETICS Although the “metrosexual” movement is rising, as is skin care awareness, men in general still show resistance towards buying cosmetic products. These products still carry feminine connotation that leads to “gay fear” of becoming a cosmetics consumer. Men cosmetic companies face a misconception towards the virility of consuming its products. YOUTH The younger generation is more open to cosmetics.

Datamonitor’s research points to the fact that the younger generation is embracing more feminine consumer values, as they come to experiment new products and grooming practices (Pitman). THE “GREEN” TREND A major global trend is the consumer shift towards environmentally friendly products. Consumers are becoming more and more aware of how its choices affect the planet. In this context, natural products are becoming the choice of the modern consumer. The cosmetics market has been generally environmentally friendly for a number of years, with production CFC aerosols and incidents of animal testing reducing 16 significantly (Green Consumer Guide). Further than that, products are becoming even greener and words such as natural, organic or pure are becoming easier to find in cosmetic’s packaging. POST-RECESSION PRICE AWARENESS

With the late economic downturn of 2007-2009, as a general post-recession trend, the consumer becomes more aware of and more sensitive to price. As money becomes more valuable in a crisis, consumers are expected to become inclined towards nonluxury products, looking to obtain the maximum value for their money. 17 Customer Segmentation Customers for men’s cosmetics fall into two main categories: men and women. The “men category” can be divided into 5 segments based on benefits sought. Segment 1 Every-day Shavers Benefits Sought 2 Cool Seekers 3 Health Seekers 4 Youth Seekers -Skin rejuvenation -Feel and look young -Beauty -Anti-wrinkle -Eye rollers -Skin-firming -Anti-aging 5 Prestige Consumers Status -Quality -Superiority -Reputation -Basic shaving -Attract women -Skin health -Popularity -Beauty -Look/feel cool -Attention -Colognes -Brands associated with coolness (e. g. : AXE) Type of Product Used -Razors -Shaving foam -Pre-shave cleansers -Post-shave lotions -Moisturizers -Cleansers -Exfoliators -Sun lotion -Luxury only in all categories Demographics -Male -All ages – Young men from 14 to 20 – Low income or dependants -White skin – Middle income -20 to 44 years of age -45 to 60 years of age -Middle to high income -35+ years of age -High income Purchase Constancy High Medium Medium Low Low to Medium % of Population 52. 84% 5. 92% 21. 40% 13. 46% 6. 38%

According to Appendix E, the most attractive segments are males who use products for everyday shaving. This segment is 51. 76% of the all segments. But we counted the average monthly expenditures. For segments with high-income this amount could be much higher. 18 WOMEN The second consumer category in men’s cosmetics market is women. According to Matthew Hague “despite the shift to man-friendly packaging, women still make up half of the buyers”. Women want their men to look like celebrities. They project their wants towards their husband/partner/boyfriend. They want to be healthier, to look younger and prettier, wanting that also for their men.

Women buy cosmetics for men as presents and might buy them even when the expected user does not want it. And female segment is very attractive segment since it has a market potential as high as the male segment. They will become the buyers for a product that will be consumed by another person. Women can increase the men’s market potential since they are already educated consumers for cosmetics and tend to spend larger amounts in such products than men. TARGET L’Oreal Paris Men Expert targets those men in segments 3 and 4: “Healthy skin” and “Young looking”. Together, these two segments account for over 34% of the market value, include men from 20 to 60 years of age who look for health and youth in skin care. 19 Competitive Analysis

According to field research, the main competitors for L’Oreal Men’s Expert are Nivea for Men and Neutrogena Men. Product differentiation: the market is highly competitive and the consumers tend not to make changes to the product they are using if there is no significant difference. This means that competitors are always working on new innovations and product lines in order to compete in the market. In a comparison, these competitors do not demonstrate much difference in their distribution and none of them have any major weaknesses differences. For a list of men’s skin care products offered by both competitors in Canada, see Appendix F. NIVEA Owner: Beierdorf Brand creation: 1911 Nivea for Men segments its global products in 7 categories.

Out of the 78 products it offers around the globe, it competes in Canada with only 21 in the following categories: Face Cleansing, Shaving, After-Shave, Face Care and Shower & Body Care (Nivea for Men). Category Face Cleansing Shaving After-Shave Face Care Hair Care & Styling Shower & Body Care Deodorant TOTAL Global Products 5 14 9 11 8 8 23 78 Products in Canada 3 8 4 3 0 3 0 21 20 NEUTROGENA Owner: Johnson & Johnson Brand creation: 1930s Neutrogena Men has 20 products for skincare globally. The band offers products which are exclusively for men but also cross-sells products to men that are primarily developed for the women’s market (Neutrogena). Its website links the Neutrogena Men’s page to products available on the Neutrogena Women’s page (e. g. : Neutrogena Healthy Skin Anti-Wrinkle Intensive Night cream).

The Neutrogena’s Canadian website features 26 new products where 15 of them are described as anti-aging products, showing that approximately 58 % of the brand’s new products are in the anti-aging category. However none of them are exclusively for men. In Canada Neutrogena has segmented its men’s skincare product line into 4 categories. The number of products offered in Canada refers to those exclusively developed and marketed to men. Category Dry Skin Invigorating Razor Irritation Prone Skin Acne Prone Skin TOTAL Products offered in Canada 1 1 3 2 7 21 COMPARATIVE TABLE L’Oreal Men Expert Products 15 products in Canada Active Defense System – ADS (refer to page 9) Only to offer anti-aging / market leader Hydra Power Cleanser: C$ 8. 59 Price Average: C$11. 60 Range: C$6. 29 to 15. 9 -Sampling Main Promotions -Magazines -Promotions targeting gay population 50% of shelf space Nivea for Men 21 products in Canada Neutrogena Men 7 products in Canada Positioning and Competitive advantage Dermatologically approved for compatibility with men’s skin Recommended by most dermatologists Deep Cleaning Face Wash: C$ 8. 99 Average: C$ 7. 35 Range: C$3. 49 to 12. 89 -Sampling Invigorating Face Wash: C$ 10. 49 Average: C$ 10. 00 Range: C$ 8. 29 to C$ 12. 09 -Sampling at universities -TV and cinema advertising -Contests -Association with sports -Online networking -Highly interactive Website 25% of shelf space 25% of shelf space Market Share (non-luxury only) 22 SWOT Strenghts • Leadership in non-luxury skin care – First to market – High arket share – Only non-luxury line with anti-aging • Distinct packaging colors • Good quality Oportunities • Growing market – Anti-aging – Baby Boomers • Night-use products trend • Higher price awareness (post-recession) • Metrosexuality trend • Youth more open towards skin-care • Trend towards “natural” and “green” • Women as consumers Weaknesses • Limited product line – Small number of products – Slow expansion (new products) • Low market share in men’s grooming • Highest price (among main competitors) • Feminine brand image and packaging Threats • Male misconception towards cosmetics – Resistance towards purchasing – Gay fear • Competition – Higher number of products – Faster line expansion • Market dominated by grooming products • Luxury skin care segment growing over mass-market segment GAP L’Oreal Paris Men Expert can gain market share in the male cosmetic market in Canada through maintaining itself leader in the fastest growing sectors: skin care and antiaging. Taking advantage of the post-recession price awareness and the metrosexuality trend, Men Expert can grow together with the non-luxury skin-care market until it reaches enough brand equity to grow over the luxury segment and enough share to effectively penetrate the most valuable male cosmetic segment, the monopolized grooming sector.

The main opportunity to explore the anti-aging sector is on the technology trend towards development of night-usage products. Launching a new product in this section would counter the slow expansion the line has been experiencing, maintaining it at a competitive stance. Furthermore, being the only nonluxury competitor to offer anti-aging products for men, Men Expert can consolidate its position as a pioneer brand offering a product technology (anti-aging for night use) which no other brand in the men’s cosmetic industry has yet offered. 23 MARKETING PLAN L’Oreal Paris Men Expert Night-to-Dawn Anti-aging 24 MARKETING OBJECTIVES Successfully introduce the new L’Oreal Paris Men Expert line extension product “Night-to-Dawn Anti-aging” to the Canadian market.

Financially break even by first year By effectively promoting product with a limited budget By utilizing an efficient marketing mix Achieve a wholesale revenue of C$ 1,3 million By reaching high consumer awareness, interest and high distribution reach Make product synonymous with product category (value men anti-aging) in one year By being the first to market and maintaining leadership Successfully create a public image of quality for product within 6 months of launch Through innovative technology, efficient PR and good critic reviews Successfully increase our distribution coverage to male-oriented retailers in one year By achieving an amount of sales at these locations that will sustain the product’s placement TARGET Primary target: the Canadian average man, with white-skin between the age of 40 to 60 years who wants to feel and look younger. He is on the verge of, or already showing skin signs of aging. He cares about what others think of him and is not confident about his looks. He belongs to the middle-income economic group of the population and is somewhat price sensitive. He prefers value over luxury, shopping mostly at mass-market retailers.

He is married, with kids, living in an urban area and is economically active. He drinks beer occasionally, at pubs but mostly at home, while watching hockey games. He spends a lot of time with his family doing outdoor activities, usually during the weekend. Secondary target: The primary target’s wife or partner. She is very concerned about her looks and what others think about them as a couple. She has similar values and life-style as her husband or partner. She actively shops for personal care products for him or influences him to buy them, indicating her personal choice brands. 25 POSITIONING STRATEGY Value-based Mass-marketed (low price) product with added convenience (night usage).

Positioning Statement For the average man who wants to look younger, L’Oreal Paris Men Expert Nightto-Dawn Anti-aging is the night anti-aging moisturizer that makes skin care simple by working while you sleep. Positioning relative to Men Expert line Top product of the line. Cross-selling to avoid cannibalism: after introductory stage of product life cycle, it will be positioned as a complement to other anti-aging products. Other two anti-aging products of the line must be positioned as a day-use product. 26 PRODUCT Men Expert Night-to-Dawn Anti-aging is a moisturizer for all types of skin that is applied to the face before going to sleep to combat skin signs of aging. The cream works effectively during the night when the skin is not exposed to pollution and harmful sun radiation. FEATURES AND BENEFITS

Type Consistency Colour Smell Line extension product Thick cream Pearl-white Odourless – ADS (Active Defence System) Ingredients – Anti-oxidants – Natural vitamins and minerals – Anti-wrinkle and rejuvenating – Removes Dark Spots Benefits – Hydrating and relaxing – Non-irritant Results Can be seen after 1st month of use BRAND NAME AND RATIONALE Brand name Product name L’Oreal Paris Men Expert Night-to-Dawn Anti-aging Following the other products in the line, the name describes the Rationale product`s benefits. It simplifies the selection process. 27 PACKAGING Cylindrical plastic bottle with squared base (for efficient stacking) in Container a squared cardboard box 48 ml Quantity Consumers round up figure to “50”, saving manufacturer 2 ml / unit Expected usage period 3 months per unit

Push-down Pump Lid Lid designed so the user obtains optimal amount of cream (0,5 ml) Mainly metallic gray (for masculine appeal) with orange details (for Label colours maintaining line recognition) Brand name (L’Oreal Paris Men Expert), Product name (Night-toFront label Dawn Anti-aging), ADS, quantity (48 ml) and “New / Nouveau”. All information is in both English and French. Brief description and benefits, how to use, regulated mandatory Back label information (ingredients, manufacturer, warnings, etc). All information is in both English and French. COMPETITIVE ADVANTAGES Pioneer: Night-to-Dawn Anti-aging will be the first nigh-use anti-aging product in the Canadian men’s market. Price: being a value-brand, all competing anti-aging products fall into the luxury category, making Night-to-Dawn the cheapest option on the market.

Brand equity: the well-known brand name generates value that cannot be duplicated by competing products, making this a sustainable competitive advantage. Active Defense System: the patented system cannot be copied by competitors, being a sustainable competitive advantage. 28 PRICE Retail price: C$ 19. 89 Value-Based Strategy Following the Men Expert line price positioning strategy, Night-to-Dawn Anti-aging is priced at a very affordable range. It comes in the non-luxury segment offering great value. Odd-pricing The product is odd-priced primarily as to follow the Men Expert line rationale. All products on the line utilize odd-pricing, which gives a better impression of value. Highest price of line The Night to Dawn Anti-aging cream has the highest price among its product line.

Being a pioneer technology in the men’s market adds value to the product allowing for its positioning as the top product of the Men Expert line. Comparison between other two anti-aging products of the line: Men Expert Vita Lift Double Lifting: Men Expert Vita Lift Anti-Wrinkle: Men Expert Night-to-Dawn: C$ 14. 49 C$ 15. 29 C$ 19. 89 Competition comparison There is no competitor product in the non-luxury segment for men’s anti-aging in Canada. The night cream, being the first of its kind and priced based on a value strategy, offers a great competitive advantage. Examples: Vichy Homme Liftactiv Anti-Wrinkle: Biotherm Homme Age Fitness: Lancome Men Renergy 3D Lifting: C$ 36. 50 C$ 48. 00 C$ 77. 00 29 PLACE

Distribution Strategy Men Expert Night-to-Dawn Anti-aging will take on an intensive distribution strategy being placed at major mass retailers. Key retailers Most of the distribution would be done through the major mass-market retailers, including pharmacy chains and lower-end department stores for a better reach of the target consumer. Key retailers include: – Wall-Mart – Shoppers Drug Mart – Zellers – Loblaws – Pharma Plus Alternative Retailer Program The product will be placed at a male-oriented mass retailer as a means of associating a supposedly feminine product with a masculine environment. A pilot test will be conducted to check the program’s feasibility before making it national. The product will be placed on December and January and its outcomes evaluated on February.

In case the program is proved to be sustainable, it will be continued throughout the year and expanded to other male-oriented retailers. Retailer: Canadian Tire The pilot test will be conducted at the city of Toronto, the biggest and most diverse Canadian city. It would be carried out at few selected Canadian Tire outlets. Format: Islands at highly visible areas 30 PROMOTION Product launch Geography: National Date: Friday, November 26th 2010 (1 month before Christmas Day) Rationale: the first-month sales will be boosted by the Christmas buying frenzy. The launch will happen during the weekend when the public has more free time for product trial. Promotion budget for year Allocated: Planned: C$ 600,000 C$ 605,934 For detailed budget see Marketing Budget on page 37.

Promotion objectives Building product awareness throughout Canada while creating need and stimulating market demand that are directly linked to the product. Advertising objectives Persuade men to think about how simple it can be to reach their potential for looking young, handsome and feeling confident. Persuade women to take on the responsibility for their husband or partner’s aging signs. Creative Strategy Target audience Middle-income men from 40 to 60 years of age Key benefit Younger looking skin in an easy and convenient way – Contains ADS, anti-aging ingredients, vitamins and Support minerals – Night use for convenience and simplicity 31

Creative Strategy (con’t) Older men want to look younger and are inclined to use anti-aging skin-care products provided they do not have to Insight spend much time on it and have a convenient and private environment to use them. Key Message an easy way to a younger looking skin Advertising content Developed by hired advertising agency with the following characteristics: – Conveys key message and achieves advertising objective; – Explicitly displays product price (major competitive advantage); – Indicates the product as “new”; – Promotes product as a Christmas gift (only for advertising pieces that end circulation before December 25th 2010). INTEGRATED MARKETING COMMUNICATIONS CAMPAIGN

PR Campaign Sampling: to be sent to critics for reviews (1 month before launch – Oct 26th 2010) Pre-launch event: to take place on November 20th 2010. The event will consist mainly of a “party” where product will be introduced at first-hand to main media representatives. Campaign: the PR work will start 1 month before launch and continue for at least 3 months after launch. The main objective is to create media buzz and generate free publicity for the product. Outdoor Billboards Number of units: 100 Period: 1st month after launch (November 26th 2010 to December 25th 2010) 32 Outdoor Billboards (con’t) Location: major Canadian cities – Toronto (ON): 5,1 million hab. – 43 locations – Montreal (QC): 3,6 million hab. – 30 locations – Vancouver (BC): 2,1 million hab. 18 locations – Calgary (AB): 1 million hab. – 9 locations Newspaper Ads Publication: The National Post Reach: National Specifications: 2 half-page advertisements Dates: 1st and 3rd week of December 2010 Rationale: the newspaper reader profile fits product’s target – 61% are men – 57% are between 35 to 64 years of age Sampling Number of samples: 8,000 units Distribution locations: 20 Shoppers Drug Mart stores located inside Shopping Malls at major Canadian cities. Dates: launch weekend (Saturday 27th and Sunday 28th of November 2010) Specification: island at store entrance Rationale: on weekends, when the public has more free time for product trial, is when shopping malls are busiest.

In-store POP Description: posters and shelf displays Period: 6 months after product launch Locations: 721 Shoppers Drug Mart and Wal-Marts stores across Canada – 561 Shoppers Drug Mart locations (50% coverage of total 1132 stores) – 160 Wal-Mart locations (50% coverage of total 320 stores) 33 In-store POP (con’t) In-store placement: shelf displays to be placed at two sections: 1) men’s grooming focusing on primary target and 2) women’s cosmetics focusing on secondary target. Posters to be placed at store cashier or entrance. Coupons Description: discount coupons placed in the package of L’Oreal women’s anti-aging products. Coupons targeted at secondary target. Value: C$ 2. 0 Quantity: 50,000 units Period of distribution: 3 months after product launch Microsite Description: exclusive webpage for product linked from main L’Oreal Paris website. It will contain specific information about Men Expert Night-to-Dawn Anti-aging. – The microsite will also host an online contest (see below). Period: online for at least 1 year after launch Online Contest Description: put your before/after picture on the website and get the chance to win $2000 and appear on Men Expert next advertisement campaign. Contest promotion: on Night-to-Dawn packaging Rationale: the contest not only stimulates customer interaction with the brand but also generates free publicity. 34 FINANCIAL ANALYSIS

INCOME STATEMENT for 1 year Estimated sales (wholesale) Cost of Goods Gross Profit Marketing Expenses C$ C$ C$ C$ 1,312,000 656,000 656,000 605,934 Net Profit C$ 50,066 SALES ESTIMATE Estimated units sold x Wholesale price ESTIMATION OF UNITS SOLD Target Population (men in age group 40-60) = 3. 28 million From Segmentation Strategy, Table 3 of Appendix E: Segment 3 Men with middle income from 20 to 44 = 3,967,921 Hence, average number of people from 40 to 44 age group 3,967,921x 5 / 25 = 793,584 Segment 4 Men with middle income from 45 to 60 age group = 2,495,467 Hence, men with middle income salary in the 40 to 60 age group 793,584 + 2,495,467 = 3. 8 million Predicted awareness: 50% of target population Number based on promotional campaign. It is estimated to be high since awareness by secondary target is either reflected on user’s awareness or converted into purchase. Total = 1. 64 million people from target population is aware 35 Interest development: 10% of aware population Estimate based on Product, Promotion and Price of marketing mix. Total = 164,000 people from aware population develop interest Distribution reach: 50% of interested population Estimate based on Place of marketing mix. Total = 82,000 people from interested population Retention rate: 80% of reached population It is estimated that 20% of population will deflect to competition after eveloping awareness, interest and being reach by distribution. Total = 65,600 buyers Average units purchased per year per user: 2 The lifetime of a unit is 3 months . However there will be people who will become continuous users and then there shall be people who only buy it once. Hence we take out that the average usage to be 2 units per year per response rate. Total units sold during 1 year: 65,600 buyers x 2 units = 131,200 Estimated units sold in 1 year: Wholesale price: Estimated sales revenue: 131,200 C$ 10,00 C$ 1,312,000 COST OF GOODS Number of units sold x Cost per unit Cost per unit = C$ 5. 00 Hence: Cost of Goods = 131,200 x C$ 5. 00 = C$ 656,000 36 MARKETING BUDGET

Activity Billboards POP Store placement Production Total PR Campaign Coupons Sampling Sample cost Store placement Total Newspaper Media Production Total Microsite Contest Web development Prize Total TOTAL BUDGET Cost 200. 000 115. 360 2. 844 118. 244 50. 000 100. 000 40. 000 4. 000 44. 000 51. 690 20. 000 71. 690 5. 000 15. 000 2. 000 17. 000 605,934 50,000 coupons at $ 2 8,000 samples at $ 5 each 20 locations at $ 100 per day times 2 days Description 100 billboards at $ 2,000 each 721 locations at $ 180 per 6 months 1442 pieces at $ 2 each $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ Two 1/2 page ads of $25,845 37 IMPLEMENTATION The manufacturing of the product will take place at the beginning of November 010. All products must be shipped to the retailers by November 22nd 2010 to be available at the shelves on November 26th 2010. Internal departments of L’Oreal Canada responsible for production and distribution include: Manufacturing, Sales and Logistics. For implementation timing chart see next page. PUBLIC RELATIONS The Public Relations department will be essential to the success of our promotional campaign. PR must work together with the Marketing department at the product launch, the pre-launch event and in establishing good relations with media channels and critics. Positive reviews of the product are essential to its success in the market.

Public Relations work on Men Expert Night-to-Dawn Anti-aging will take place before, during and after product launch. Online Contest: the PR Department will also be important in developing the Online Contest as “news worthy”, gaining free publicity towards the end of the year, when most promotions are no longer taking place. THIRD PARTIES Advertising Agency: the hired advertising agency will be responsible for the conception of all graphic products, including Newspaper Ads, POP displays and posters, Billboards and packaging design. The creative guidelines are to be provided by the Marketing Department. Web Agency: the hired web agency will be responsible for developing and maintaining the Microsite and the Online Contest. 38 IMPLEMENTATION CHART 010 May Mar Nov Dec Feb Apr Jan 2011 Nov Aug Sep Oct Jun Jul MAIN RESPONSABILITY Manufacturing Sales Logistics Public Relations X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X PR & Marketing Public Relations Public Relations Ad Agency Ad Agency Marketing Marketing Marketing Web Agency Web Agency Marketing Marketing Produce product Sell to retailers Shipping Send samples to critics Product Launch PROMOTIONS Pre-launch event PR Campaign Newspaper Ads Billboards POP promotions Coupons distribution Sampling Microsite / Hotsite Online Contest Alternative Retailer Prog Evaluation X X X X 39 EVALUATION AND CONTROL Financial performance: based on profit and wholesale revenue for the first year. Profit should be at least at the break-even point. Profit higher than C$ 50,000 will be considered a performance above the expectations. A wholesale revenue of C$ 1. million would be considered satisfactory. CORRECTIVE ACTION: in case expected performance is not achieved, the marketing mix must be re-evaluated, and changes should be made according to it. Product association performance: Men Expert Night-to-Dawn Anti-aging is expected to be the main product associated with the non-luxury men’s anti-aging category by the end of first year. The product is expected to become “synonymous” with the category. EVALUATION TOOL: top-of-mind survey CORRECTIVE ACTION: in case association does not come to be, review the promotion strategy, and make changes, especially in the advertising pieces, so the association becomes more obvious.

Product quality performance: within six months of launch, the product is expected to have a public image associated with quality. Measurement will be made based on critiques, evaluations, reviews from online sources, forums, print media and customer feedback. CORRECTIVE ACTION: in case objective is not achieved, take product back to R&D, make required changes, and launch re-developed product. Distribution increase: the Alternative Retailer Program will be evaluated on February, after two months of implementation. Sales must be at a minimum so the program sustains itself. CORRECTIVE ACTION: in case programs shows to be unsustainable, it must be shut down. 40 Appendix A Euromonitor’s Canadian Statistics:

Men’s Grooming Products Company Shares by Retail Value 2004-2008 % retail value rsp Company Procter & Gamble Inc Energizer Holdings Inc Dial Canada Inc Unilever Canada Inc Colgate-Palmolive Canada Inc SC Johnson & Son Ltd Combe Inc Beiersdorf Canada Inc L’Oreal Canada Inc Universal Razor Industries Bic Corp Johnson & Johnson Inc Estee Lauder Cosmetics Ltd Coty (Canada) Inc Helen of Troy Ltd Clarins Canada Inc Perio Inc Gillette Canada Inc Pfizer Canada Inc SmithKline Beecham Consumer Healthcare Inc Private Label Others Total Source: 2004 6. 1 6. 2 2. 4 4. 7 3. 5 1. 4 0. 5 0. 5 0. 9 1. 0 0. 3 0. 4 0. 1 0. 8 0. 1 0. 4 48. 2 3. 4 19. 3 100. 0 2005 55. 7 6. 1 3. 6 4. 9 3. 3 1. 0 0. 6 0. 7 0. 8 0. 8 0. 3 0. 3 0. 2 0. 8 0. 2 0. 3 3. 1 17. 3 100. 0 2006 49. 3 5. 8 6. 3 4. 1 4. 5 2. 7 1. 0 0. 6 0. 8 0. 7 0. 5 0. 4 0. 3 0. 2 0. 5 0. 2 0. 2 2. 7 19. 100. 0 2007 47. 9 6. 4 6. 2 4. 3 4. 3 2. 6 1. 5 0. 7 0. 8 0. 7 0. 5 0. 4 0. 3 0. 2 0. 4 0. 2 0. 1 2. 5 19. 8 100. 0 2008 46. 7 6. 6 6. 4 4. 6 4. 3 2. 5 1. 7 0. 8 0. 8 0. 5 0. 5 0. 4 0. 3 0. 2 0. 2 0. 2 0. 1 2. 3 20. 9 100. 0 Trade associations, trade press, company research, trade interviews, Euromonitor International estimates 41 Appendix B Lancome Men (Source: Lancome Canada) Positioning: Distribution: Price: Categories: Market Share: Products: High-luxury High-luxury specialized retailers including Sephora and Holt Renfrew stores, and selected The Bay, Sears and Shoppers Drug Mart stores. C$ 48. 72 average – Range: from C$ 27. 00 to C$ 86. 0 (online store prices) Skin care and Grooming (pre-shave, post-shave, shave) Less than 0. 1% (Canada Men’s Cosmetics 2008) (Euromonitor International). 11 products offered The Lancome Men line is the top luxury brand from L’Oreal for men’s skin care and grooming. A point-of-difference is the selection of anti-aging products segmented per user’s age: – Anti-aging products for men under the age groups 30-40 years, 40-50 years and 50+ – Energizing / anti-fatigue cream for age group 20-30 years LIST OF PRODUCTS SOLD IN CANADA AND PRICES – Energizer Total Anti-fatigue Moisturizing Revitalizing Concentrate – $ 48. 00 – Age-Fight Anti-age Perfecting Fluid – $ 52. 00 – Age-Fight Yeux Anti-Age Eye Perfecting Gel – $ 42. 0 – Renergy 3D Lifting, Anti-Wrinkle, Firming Cream – $ 77. 00 – Renergy 3D Yeux Lifting, Anti-Wrinkle, Firming Eye Cream – $ 56. 00 – Age-Force Global Anti-aging Cream – $ 86. 00 – Hydrix Micro-Nutrient Moisturizing Gel – $ 44. 00 – Hydrix Micro-Nutrient Moisturizing Balm – $ 44. 00 – High Definition Shave Foam – $ 27. 00 – Ultimate Cleasing Gel – $ 27. 00 – Exfoliant Microdermabrasion – $ 32. 50 Biotherm Homme (Source: Biotherm Canada) Positioning: Distribution: Price: Categories: Market Share: Products: Luxury Higher-end retailers, pharmacies and specialized stores: Shoppers Drug Mart, Pharma Plus, Sears, The Bay and Jean Coutu. C$ 39. 00 average – Range: from C$ 20. 00 to C$ 65. 0 (online store prices) Skin care, Grooming (pre-shave, post-shave, shave), Bath & Shower and Deodorants. 0. 5% (Canada Men’s Cosmetics 2008) (Euromonitor International). 29 products offered 42 Appendix B (con’t) Biotherm Homme has seven distinct product lines where 17 of its 29 products fall into: – High Recharge: anti-fatigue / energizing products – Hydra Detox 2X: anti-pollution / detoxifying products with oxygen – Age Fitness: anti-aging products for age group 30-40 years – Force Supreme: anti-aging products for age group 40-50 years – Age Refirm: anti-aging products for age group 50+ years LIST OF PRODUCTS SOLD IN CANADA AND PRICES – Cleansing Gel Normal skin ($ 26. 0) – Desincrustant Visage Facial Exfoliator ($ 30. 00) – T-Pur Anti-Shine Facial Cleanser Oily Skin ($ 29. 00) – Gel de Rasage Extra Protection Shaving Gel ($ 20. 00) – Rasage Precis Peau Sensible Close Shave ($ 20. 00) – Razor Burn Eliminator After-Shave instant soother ($ 32. 00) – ULTRA CONFORT Moisturizing Balm and After Shave ($ 38. 00) – AQUAPOWER ABSOLUTE Transparent Moisturizing Gel ($ 35. 00) – AQUAPOWER Oligo-thermal care moisturizer normal skin ($ 29. 50) – AQUAPOWER Oligo-thermal care moisturizer dry skin ($ 29. 50) – ULTRA CONFORT Moisturizing Balm and After Shave ($ 38. 00) – AQUA SENSITIVE Moisturizing Ultra-Soothing Care Sensitive skin ($ 36. 0) – High Recharge (anti-fatigue – energizing) -HIGH RECHARGE ENERGY CLEANSER ANTI-FATIGUE CLEANSING GEL ($ 26. 00) – HIGH RECHARGE ENERGY SPLASH INSTANT ANTI-FATIGUE LOTION ($ 38. 00) – HIGH RECHARGE Non-stop Moisturizing Anti-fatigue ($ 47. 00) – HIGH RECHARGE NATURAL BRONZE – Daily healthy looking tan ($ 46. 00) – HIGH RECHARGE EYE Anti-fatigue cold eye serum ($ 40. 00) – Hydra Detox 2X (detoxifying / anti-pollution – w/ oxygen) – HYDRA DETO2X Instant Cleanser with polishing micro-powders ($ 29. 00) – HYDRA DETO2X Oxygenating Moisturizer with oxygen booster ($ 38. 00) – Hydra Deto2x Yeux Puffiness and Dark Circles with oxygen booster ($ 40. 0) – Age Fitness (anti-aging young 30+) – Age Fitness Active Anti-aging Care ($ 48. 00) – Age Fitness Yeux – Eye Care with pure olive leaf concentrate ($ 43. 00) – AGE FITNESS NIGHT RECHARGE Fortifying Night Care ($ 52. 00) – Force Supreme (anti-aging mid-age 40+) – FORCE SUPREME GEL Anti-aging gel care ($ 55. 00) – FORCE SUPREME Anti-age Day Care ($ 65. 00) – FORCE SUPREME YEUX Total anti-aging eye care ($ 48. 00) – FORCE SUPREME NEUTRALIZER – wrinkle correction ($ 55. 00) – Age Refirm (anti-aging old 50+) – Age Refirm Skin Firming Wrinkle Corrector with silicium and biopeptides ($ 54. 00) – Age Refirm Eye Force – with Pure Silicium and Stimulating Biopeptides ($ 45. 00) 43 Appendix B (con’t)

Vichy Homme (Source: Vichy Canada) Positioning: Distribution: Price: Categories: Market Share: Specialty / Semi-luxury Pharmacy chains only – Sold through specialist’s advice C$ 24. 00 average – Range: from C$ 13. 50 to C$ 36. 50 (Prices from Shoppers Drug Mart store #1402, Toronto, on 28/03/2010) Skin care, Grooming (pre-shave, post-shave, shave) and Deodorants. 0. 1% (Canada Men’s Cosmetics 2008) (Euromonitor International). Vichy products differ from other L’Oreal skin care products because they are dermocosmetics. these products contain medical properties and, apart from its cosmetic function, offer skin disorder treatment (e. g. acne, cellulite). Vichy Homme products therefore, are only sold in pharmacies under a pharmacist, dermatologist or specialist advice. 4 Appendix C Euromonitor’s Canadian Statistics: Men’s Grooming Products Brand Shares by Retail Value 2005-2008 % retail value rsp Brand Gillette Mach3 Schick Right Guard Gillette Fusion Axe Speed Stick Old Spice Gillette Series Gillette Foamy Edge TAG Just for Men Clairol Men’s Choice Nivea for Men Grecian 2000 Biotherm Homme Bic Old Spice Neutrogena L’Oreal Men Expert Clinique Skin Supplies for Men Brut Clarins Men adidas Barbasol Vichy Homme Aramis Lab Series Noxzema Lectric Shave Wilkinson Sword Right Guard Gillette Foamy Gillette Mach3 Gillette Series Right Guard Schick Wilkinson Sword Lectric Shave Brut Private label Others Total Source:

Company Procter & Gamble Inc Energizer Holdings Inc Dial Canada Inc Procter & Gamble Inc Unilever Canada Inc Colgate-Palmolive Canada Inc Procter & Gamble Inc Procter & Gamble Inc Procter & Gamble Inc SC Johnson & Son Ltd Procter & Gamble Inc Combe Inc Procter & Gamble Inc Beiersdorf Canada Inc Combe Inc L’Oreal Canada Inc Bic Corp Universal Razor Industries Johnson & Johnson Inc L’Oreal Canada Inc Estee Lauder Cosmetics Ltd Helen of Troy Ltd Clarins Canada Inc Coty (Canada) Inc Perio Inc L’Oreal Canada Inc Estee Lauder Cosmetics Ltd Universal Razor Industries Combe Inc Energizer Holdings Inc Procter & Gamble Inc Gillette Canada Inc Gillette Canada Inc Gillette Canada Inc Gillette Canada Inc Pfizer Canada Inc Pfizer Canada Inc SmithKline Beecham Consumer Healthcare Inc Unilever Canada Inc Private Label 2005 18. 6 5. 9 2. 3 3. 6 4. 9 4. 0 4. 3 3. 4 3. 3 1. 0 0. 5 1. 7 0. 6 0. 2 0. 5 0. 8 0. 7 0. 3 0. 2 0. 2 0. 8 0. 2 0. 1 0. 3 0. 1 0. 1 0. 2 0. 3 0. 2 6. 3. 1 31. 2 100. 0 2006 18. 1 5. 7 6. 3 4. 3 4. 1 4. 5 4. 0 3. 9 3. 1 2. 7 1. 5 0. 6 1. 6 0. 6 0. 2 0. 5 0. 5 0. 6 0. 4 0. 2 0. 2 0. 5 0. 2 0. 1 0. 2 0. 1 0. 1 0. 1 0. 2 0. 1 2. 7 32. 0 100. 0 2007 17. 8 6. 4 6. 2 5. 5 4. 3 4. 3 3. 9 3. 8 2. 9 2. 6 1. 5 1. 0 1. 2 0. 7 0. 4 0. 5 0. 5 0. 6 0. 4 0. 2 0. 2 0. 4 0. 2 0. 1 0. 1 0. 1 0. 1 0. 1 0. 1 2. 5 31. 2 100. 0 2008 17. 5 6. 6 6. 4 6. 1 4. 6 4. 3 3. 9 3. 7 2. 7 2. 5 1. 5 1. 1 1. 0 0. 8 0. 5 0. 5 0. 5 0. 4 0. 4 0. 2 0. 2 0. 2 0. 2 0. 1 0. 1 0. 1 0. 1 0. 0 0. 0 2. 3 31. 2 100. 0 Trade associations, trade press, company research, trade interviews, Euromonitor International estimates 45 Appendix D

LIST OF PRODUCTS SOLD IN CANADA AND PRICES (from Well. ca) L’Oreal Paris Men Expert MEN EXPERT – HYDRA SENSITIVE LINE – Hydra Sensitive After-Shave Balm ($ 11. 99) – Hydra Sensitive Cleanser ($ 11. 99) – Hydra Sensitive Shaving Gel ($ 7. 99) – Hydra Sensitive 24h Moisturizer ($ 11. 99) MEN EXPERT – HYDRA POWER LINE – Oil Controller Cleanser ($ 9. 99) – Vita Lift Double Lifting – Anti-aging ($ 14. 49) – Vita Lift Anti-Wrinkle & Firming Moisturizer ($ 15. 29) – Power Clean Anti-Dullness Cleanser ($ 9. 79) – Invigorating Moisturizer ($ 9. 79) – Turbo Booster Moisturizer ($ 15. 29) – Hydra Energetic Hydrating Boost After-Shave Balm ($ 10. 99) – Hydra Energetic Ice Cold Eye Roller ($ 15. 9) – Comfort Max Anti-Irritation After Shave Balm ($ 9. 79) – Comfort Max Anti-Irritation Shave Foam ($ 6. 49) – Comfort Max Smooth Gel Anti-Irritation Shave Gel ($ 6. 29) 46 Appendix E To count who many percent of target market every group is, we have to use a lot of statistics data about Canadian market. Population in Canada is approximately 33,739,859 people (“Population estimates by sex and age group as of July 1, 2009, Canada”). According to data provided by Statistics Canada, we can count amount of male in every our age segment. Segment Age: 14 – 20 Age: 20 – 34 Age: 35 – 44 Age: 45 – 59 Total: Amount of people 1 098 791 3 509 897 2 412 373 2 778 916 9 799 977 Table 2.

Amount of people in every age segment The next step is identify the mount of people for every of segments. According to Statistic Canada the average amount of people with low-income is 10. 2%, middle income is 67% and high-income is 22. 8%. Basing on this we can count a number of people in every segment. Segment 1 All men Segment 2 Men from 14 to 20 with low income 1 098 791 5. 92% Segment 3 Men with middle income from 20 to 44. 3 967 921 21. 40% Segment 4 Men from 45 to 60 with from middle to up income. 2 495 467 13. 46% Segment 5 Men from 35 and up with high income. 1 183 614 6. 38% 9 799 977 52. 84% Table 3. Amount of people in every chosen segment

According to table 3, the most attractive segments are males who use products for everyday shaving. This segment is 52. 84% of the all segments. But we counted just amount of people in every segment. But people with different income spend different amount of money for cosmetics. 47 Appendix F NEUTROGENA FOR MEN – PRODUCT LIST Dry Skin NEUTROGENA® Triple Protect Face Lotion SPF20 Invigorating Invigorating Face Wash Razor Irritation Prone Skin RAZOR DEFENSE® Gentle Face Scrub RAZOR DEFENSE® Post Shave Face Lotion RAZOR DEFENSE® Shave Gel Acne Prone Skin NEUTROGENA® SKIN CLEARING™ Face Wash NEUTROGENA® SKIN CLEARING™ Shave Cream NIVEA FOR MEN – PRODUCT LIST

Face Cleansing Exfoliating Face Scrub Deep Cleaning Face Wash Sensitive Face Wash Shaving Cool Kick Shaving Gel Sensitive Shaving Gel Extra Moisture Shaving Gel Extreme Comfort Shaving Gel Easy Cross Shave Shaving Gel Extra Moisture Shaving Foam Sensitive Shaving Foam Extra Moisture Shaving Cream After Shave Cool Kick After Shave Balm Sensitive After Shave Balm Replenishing After Shave Balm Extreme Comfort After Shave Balm Sensitive Moisturiser Rehydrating Moisturiser Cool Kick Moisture Gel Shower & Body Care Energy Shower Gel Sensitive Shower Gel Cool Kick Shower

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