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PONDS BEAUTY CENTRES

Ponds Beauty Center Update


August the 23rd, 2004

PONDS BEAUTY CENTRES

PONDS BEAUTY CENTRES

PONDS BEAUTY CENTRES


1.- PBCs Update
October 2002, Unilever Ventures Funds took financial responsibility on PBCs with
an operational framework agreed.
October 2000
PBC1
February 2003
PBC2
April 2003
PBC3

Households
PARQUE DE LAS AVENIDAS ( upper - middle class with mid population ).
Mainly residential area but also with some office buildings
Padilla 42. B. Salamanca (upper class with high population)
Mainly residential area but also some office buildings.
Bolivia 24. B. Chamartin (upper class with very high population)
Mainly residential area .

surronding areas

3.816

5.786

8.610

BETTER LOCATION & SOCIO DEMOGRAPHIC PARAMETERS

PONDS BEAUTY CENTRES


1.- PBCs Update
Area

N Cabins

Monthly rent

Rent / sqm

Start-up K

PBC1: P. Avenidas

235 sqm

4.173

17,8

215

PBC 2: Padilla

210 sqm

3.087

14,7

245

PBC3: Bolivia

123 sqm

2.031

16.5

171

SPACE OPTIMIZATION & COST REDUCTION

PONDS BEAUTY CENTRES


1.- PBCs Update

IMPROVEMENTS:
. More cosmetic
. Brand reinforcement
. Better merchandising

PONDS BEAUTY CENTRES


1.- PBCs Update
Operational Framework
Lever Faberg objective:
to develop Ponds as the leading skincare brand in
Spain.
UVF objective:
to maximize business value in 5 years time.
PBCs should be an independent limited company owned
by Unilever Spain.
UVF is responsible for busines accountability & staff.
Supply agreement. NPS-20%. Service agreemnt 4%.

PONDS BEAUTY CENTRES


1.- PBCs Update
Operational Framework
PBCS Gobernance Board (meeting / 6-8 weeks):
UVF Representative

A. Lane / B. Steward

Board Member of L.F. Spain

Miguel Angel Rivera

PBCs Responsible

Javier Valiente

Experienced Retailer Consultant

Lluis Martinez

PONDS BEAUTY CENTRES


1.- PBCs Update

Additional Support:
Ad-hoc co-operation with a Beauty Expert
Special agreement with Beauticians School

PONDS BEAUTY CENTRES


1.- PBCs Update

Plan as for a brand.


- 2 seasons
- 3 main working areas
NEW TREATMENTS
+
NEW PRODUCTS

PROMOTION &
ACTIVITIES
Traffic & Loyalty
COMMUNICATION
Direct & appealing
PR activities

PONDS BEAUTY CENTRES


1.- Financial Review & Main Indicators

PONDS BEAUTY CENTRES


2.- Financial Review

July AC04

PONDS BEAUTY CENTRES


2.- Financial Review

July AC04

PONDS BEAUTY CENTRES


2.- Financial Review

July AC04

PONDS BEAUTY CENTRES


2.- Financial Review

July AC04

PONDS BEAUTY CENTRES

PONDS BEAUTY CENTRES


Product Sales Evolution (value)

54%

2%
7%
37%

CUM Jul 04

PRODUCTOS MASS MARKET

PRODUCTOS EXCLUSIVOS

PONDS BEAUTY CENTRES

7%
1%
10%

14%

12%

5%
5%
CUM Jul 04

PRODUCTOS EXCLUSIVOS

PONDS BEAUTY CENTRES

19%

6%

11%
1%

CUM Jul 04

PONDS BEAUTY CENTRES

Ponds brand image


Perfil marcas (P18)

PONDS BEAUTY CENTRES

Ponds brand image


Perfil marcas (P18)

PONDS BEAUTY CENTRES

Ponds brand image


Perfil marcas (P18)

PONDS BEAUTY CENTRES


FARMACIA

Facial care product usage (most


frequent brand)
Uso de productos de cuidado
facial (P2)
Marca ms frecuente

GAMA ALTA

Before opening
PBCs users

GENERAL

Base: 100
(Respuesta espontnea. Datos en %)

PONDS BEAUTY CENTRES


FARMACIA

Germinal

4
3
3
3

Belcils
Avene
Roc

GAMA ALTA

Facial care product usage (Sometimes)


Uso de productos de cuidado
facial (P2)

Vichy

16

Lancme

Estee Lauder
Christian Dior0

PBCs users

Clarins0

Biotherm

13

2
9

Pond's
1

Equilibran T
Tensifirm

35

3
2
2
2

Total Results
Nivea

10

L'Oreal

4
3

Diadermine

20

11
6

Base: 100

Yves Rocher

2
0

(Respuesta espontnea. Datos en %)

25

10

7
6

Helena Rubinstein 0

Before opening

22

13
12

Clinique

GENERAL

Total

10

10

20

30

40

50

BEAUTY
CENTRES
PondsPONDS
Institute
in San
Chinarro
Effect in Sales
+40% increase from avg. sales per month since opening. (Nov. not included)
+40% increase from previous month (april)

P.Institute

Sales season

Aug. extrapolated data from 3 first wks.


Drop caused by holidays in Madrid.

PONDS BEAUTY CENTRES

PONDS BEAUTY CENTRES


3.- Way Forward

1st Step

1.- PBCs Roll out


- Focus on own centres (this is what we know at this moment)
- Roll out (limited area) to become the reference (Madrid)
- but we need to know how to manage centres outside Madrid.

Agreed:
- Open PBC 4 & 5 in Madrid
- Open PBC 6 in Zaragoza

PONDS BEAUTY CENTRES


Business Model Scenario
Considering the agreed assumptions
Own Centres

Franchise

1.-

IRR single site:

39%

23%

2.-

Payback period:

2.61 years

3.98 years

3.-

Cash requirement

3.6 m Euro

1.0 m Euro

4.-

Exit value 2008

21.4 m Euro

8.7 m Euro

PONDS BEAUTY CENTRES


3.- Roll out decision

Potential number of centres

1. Current PBCs customer profile

PONDS BEAUTY CENTRES


3.- Roll out decision

Potential number of centres

3. Cross check with population

PONDS BEAUTY CENTRES


3.- Way Forward

1st Step

2.- Professional Product Development


- Considering the range of products currently being sold at PBCs build the
structure based on products that can be seen by our customers as
complementary to our beauty centre treatments (pre / post).
- Products with high added value perception with high profitability (high price)
- Ponds Pofessional Range umbrella.

PONDS BEAUTY CENTRES


5.- Product Development
Ponds Beauty Centres. Professional Range Structure.

PONDS BEAUTY CENTRES


5.- Product Development
Ponds Beauty Centres. Professional Range Structure.

Priority level 1

Priority level 2

Priority level 3

PONDS BEAUTY CENTRES


5.- Product Development
Ponds Beauty Centres. Professional Range Structure.
F a c ia l R a n g e

S u n R a n g e

T r e a tm e n t
E s s e n t ia l
C a re

A n t i- a g e

C le a n s in g
P e r
(o
n
s e
&

S k in t y p e
ily , d r y ,
o r m a l,
n s it iv e )

C o r e A n ti- a g e
2 5 - 4 5
I n t e n s iv e C a re

M a t u r e S k in
4 5 +
T o p P e rfo r m a n c e

S p e c if ic R a n g e
B o t o x , A n t i-s t r e s s

F o rm a t
D a y C re a m
J a r 5 0 m l
N ig h t C r e a m
J a r 5 0 m l
E y e C o n to u r
1 5 m l m a x

P r e / P o s t T re a tm e n t
S p e c i f ic

N ig h t C r e a m
J a r 5 0 m l

C a p s u le s

A m p o u le s /
B lis t e r s
T e rs -u p
A n t i-S p o t

M a s k
- F ir m in g
- M o s it
- P o re re d .

Priority level 1

Priority level 2

Priority level 3

D a y C re a m
J a r 5 0 m l

S e ru m

E y e C o n to u r
1 5 m l m a x

1 o r 2 s p e c ia lis t
(s e ru m ,
a m p o u le ,
c a p s u le s )

PONDS BEAUTY CENTRES


5.- Product Development
Ponds Beauty Centres. Professional Range Structure.

Priority level 1

Priority level 2

Priority level 3

PONDS BEAUTY CENTRES


3.- Way Forward

1st Step

3.- Taking advance on PBCs Customers


- Continue using PBCs customers both for new product test and insight
generation / research.
- Train beauticien on new insights capture.

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