Broadway Nails Product Submission

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Presentation transcript:

Broadway Nails Product Submission Presented to: Presented by: Simon Roberts - Chemcorp International Enzo Zovic - Counterpoint Marketing May 2007

1. Introduction: Company Profile 2. The Broadway Nails Difference & Market Share 3. Benefits for Woolworths 4. Advertising & Promotion 5. The proposed Broadway Range 6. New Line Support 7. Summary

Company Profile Chemcorp International is a well-established company distributing hair, nails & beauty products since 1988. Chemcorp is a market leader in hairbrushes and hair accessories with over 15,000 retailers stocking their brands throughout Australia and New Zealand. Chemcorp products are exported to over 20 countries throughout the world. Chemcorp’s Head Office is located in Sydney, with affiliate offices in Shenzhen and Hong Kong. Chemcorp International Shenzhen China office was established to co-ordinate and supervise production and quality control for many of its products.

Total US Artificial Nails 26 weeks Total US Grocery/Pharmacy/Mass Merchandisers 67.6 share +6.3 points +1.4 +3.8 26.6 share -5.6 points #1 -4.9 +0.2 #2 -0.9 -0.7 -0.4 +1.1 +0.4 +0.3 -0.1 #3 +0.0 -0.1 #4 68.8 share +8.0 points Total US Pharmacy +2.5 Share strength and growth of Kiss and Broadway, the #1 and #2 brands in Grocery/Pharmacy/Mass Merchandiser markets. Pacific World brands, Nailene-Fingr’s-Revlon, #3, #4 and #5, continue to show minimal share growth or declining shares. +4.0 24.6 share -6.4 points -5.2 +0.2 #1 #2 -1.4 -0.8 -0.5 +1.5 +0.0 +0.0 -0.2 +0.0 -0.1 #3 #4 Share & Share Change Source: ACNielsen 26 week Data ending 20/1/07

Artificial Nail Top 25 category items The Top 25 SKU’s represent 33.0% of the entire Artificial Nail Category Kiss & Broadway represent all of the US top 22 items and 24 of 25 best US SKU’s #1 00554 B’way Real Life $710,355 –2.1% #10 00553 B’way Real Life $259,703 –1.0% #19 10390 Kiss 1 Easy Step Deco’d $201,937 +0.2% #2 00556 B’way Real Life $594,327 +10.4% #11 16004 Kiss 100 Nails $243,104 +1.5% #20 00002 Kiss Complete Salon Acrylic $195,924 –3.6% #3 00385 Kiss CustomFit French $404,329 –10.6% #12 00003 Kiss Acrylic Sculpture $238,546 –0.7% #21 00384 Kiss CustomFit French $186,786 +1.3% #4 00555 B’way Real Life $366,698 +56.0% #13 00086 Kiss All or One Remover $234,807 +0.7% #22 20004 Kiss 100 Nails $172,077 +1.1% #5 #14 10419 B’way Fast French $234,350 +31.0% 10412 B’way Fast French $337,070 +68.1% #23 12503 IBD Salon Nail Glue $168,844 –21.4% Strength of Kiss & Broadway skus in Artificial Nail category. Top 22 best selling skus. 24 of 25 best selling skus. 00383 B’way Deceptions $233,267 +11.1% #6 00088 B’way Deceptions $334,338 +20.0% #15 #24 00808 Kiss Fashion Toenails $137,369 –24.7% 00388 Kiss CustomFit French $230,309 -3.4% #7 10443 Kiss 1 Easy Step French $298,134 +11.8% #16 #25 00807 Kiss Fashion Toenails $112,177 –20.3% 02069 Kiss Procision Glue $214,735 +76.9% #8 11012 Kiss Max Speed Glue $275,496 +1.7% #17 00562 B’way D’Luxe Nail Art $208,197 +4.9% #9 00387 Kiss CustomFit French $270,961 +56.8% #18 Source: Grocery/Pharmacy/Mass Merchandisers ACNielsen 12 week Data ending 20/1/07, (Dollar Volume, % Chg v. LY)

Food/Pharmacy/Mass Merchandisers Artificial Nails By Segment The Artificial Nail Category is a $44.8 million category posting growth of 3.4%, over the past 26 weeks. Traditional French and Decorated Nails represent 45.2% of the entire category with a growth rate of 13.3% and 3.1%, respectively. Segments w/in the Artificial Nail category & % breakdown. Multiple products required in a typical nail application means additional purchases for the retailer. Source: ACNielsen 26wk data ending 20/1/07

The Broadway Nails Difference Compared to our competitors, Broadway Nails have: Superior quality plastic Tapered nail design Snugfit cuticle for comfort Comfortable nail arches No. 1 selling range of artificial nails in the USA* Market leader in 45 countries throughout the world *Based on A.C. Neilsen Data

Benefits for No. 1 artificial nail range in the world The first retail (grocery) chain to list the product All product inners of 2 or 6 Stand out packaging & innovative product design will grow the category Competitive Margins & Pricing Product support through Print advertising & promotion Radio Frequency Electronic Article Surveillance Labels on most products

Advertising & Promotion Broadway Nails has editorial & magazine advertising across major Australian magazines such as Dolly, Girlfriend, Cosmopolitan, New Idea, NW & Cleo. Press advertising in Body + Soul, Sunday Telegraph. Advertising would be tagged - Available at if ranged in all stores.

The Broadway Full Range

Broadway Top 27 Selling SKUs

Proposed Planogram for Broadway Top 10 Selling SKUs

Proposed Planogram for (cont.) Chemcorp Item Code Barcode No. Description Inner Pack List Price Per/ Inner * Less W/Housing 5% * NETT Price Per Unit* Sell (Excl GST) * $ Margin * RRP (Incl. GST) GP Based on Sell (Excl GST) 1 03.090 0731509005530 #BSF01 Real Life French - Practical 2 $15.92 $15.12 $7.54 $14.50 $6.96 $15.95 48% 03.091 0731509005547 #BSF02 Real Life French - Everyday 3 03.093 0731509005561 #BSF04 Real Life French - Anywear 4 03.072 0731509104127 #BFD02 Fast French Nail Kit - Pink $13.40 $12.73 $6.35 $12.22 $5.87 $13.45 5 03.075 0731509104196 #BFD05 Fast French Nail Kit - Slope 6 03.084 0731509003833 #BGG05 Natural Deceptions - Clever $14.93 $14.18 $7.07 $13.59 $6.52 $14.95 7 03.045 0731509101164 #BNK08 Two Step - Short Square $11.93 $11.33 $5.65 $10.86 $5.21 $11.95 8 03.140 0731509005790 #BGL300 Long Wear Nail Glue $4.94 $4.69 $2.34 $4.50 $2.16 $4.95 9 03.160 0731509025712 #BBF200 Black Pro Grinder $11.84 $11.25 $1.87 $3.59 $1.72 $3.95 10 03.161 0731509025743 #BBF222 4-Way Ultra Shiner * Excludes GST

Broadway Nails Projected Sales at Cost No Chemcorp Item Code Barcode No. Description Est. Sales Per week Per Store (Units) Est. 6 Months Sales No. Stores Ranked Net Cost Excl GST* NETT Sales Cost Excl. GST 1 03.090 0731509005530 #BSF01 Real Life French - Practical 2 52 400 $7.54 $156,832 03.091 0731509005547 #BSF02 Real Life French - Everyday 3 03.093 0731509005561 #BSF04 Real Life French - Anywear 4 03.045 0731509101164 #BNK08 Two Step - Short Square 26 $5.65 $58,760 5 03.084 0731509003833 #BGG05 Natural Deceptions - Clever $7.07 $73,528 6 03.072 0731509104127 #BFD02 Fast French Nail Kit - Pink $6.35 $66,044 7 03.075 0731509104196 #BFD05 Fast French Nail Kit - Slope $66,040 8 03.140 0731509005790 #BGL300 Long Wear Nail Glue $2.34 $24,336 9 03.160 0731509025712 #BBF200 Blank Pro Grinder $1.87 $38,896 10 03.161 0731509025743 #BBF222 4-Way Ultra Shiner *PROJECTED SALES AT NETT COST EXCLUDING GST. TOTAL: $836,996 PROJECTED TRADING TERMS REBATE: $98,347

New Line Support Trading Terms New Line Support for 26 weeks Warehousing 5% off invoice Business Plan Trading Terms 11.75% by claim Gross Margin 48.00% New Line Support for 26 weeks 1 x Health & Beauty Catalogue 1 x Fly Buys Promotion Promotion Program for 12 Months Grocery Exclusive If ranged in 600 stores nationally, Broadway Nails would be exclusive to Woolworths supermarkets for 12 months from date of ranging Total Gross Margin 59.75%

Exit Strategy Support Chemcorp will support Woolworths to ensure Broadway Nails is successful If products do not perform after 26 weeks we will pick up stock From Woolworths Warehouses Assist Woolworths in mark downs at store level to help clear stock (mark down 50% off invoice cost)

Summary No 1 Selling range of artificial nails in the U.S.A, U.K. and 45 countries. Support via extensive magazine advertisements and editorials In store support via Counterpoint Marketing (420 merchandisers nationally) Competitive retail pricing on shelf Out selling competitors in Australian mass merchant retailers Gross Profit 48% plus (ranged into warehouse) Exit Strategy for Woolworths