STATEGY OF DEZZYTOL LAUNCH IN UKRAINE

PREPARED BY OVSIYENKO NATALY

24 MARCH 2023

34
Market overview
Reckitt operates in 3 different categories:
Hygiene, Health and Nutrition.
Logically that new Dezzytol portpholio
refers to Health category.
KEY CONSUMER TRENDS that
effect business:
• Necessity of hygiene due to global
warming trends and urbanization,
their impact on spread of infections
• Transforming consumer purchasing
habits due to COVID-19 growing
necessity of hygiene for protection
against germs outside of home.
• Growing demand of self-care due to
daily life pressure on health system
• Demand for living longer and need
in health products that allows live to
the full.

.
Source: Euromonitor data
.
Global market overview

MARKET BACKGROUND Market size

Category Growth Rate (CAGR)
(Billion USD)
Disinfectants – relatively small in value, very fragmented market with
massive growth rates. Lots of cheap players. No media support during
past years.
Disinfectants 4,9 10,2%
Soap – big established and very fragmented category represented by
multinational players as well as local ones and growing +20% in value.
Soap 207,56 8,83%
Supported on TV with massive investments behind.
Wipes – smallest market among those three. #1 player accounts for
Wipes 11,25 6,1 %
~70% of the market in value with media support behind. Source: Grandviewresearch
KEY CONSUMER TRENDS:
• Necessity of hygiene due to global warming trends and
urbanization, their impact on spread of infections
• Transforming consumer purchasing habits due to COVID-19
growing necessity of hygiene
• Growing demand of self-care
Soap market trends

MARKET 2023 OVERVIEW

The global soap and detergent market size is valued at USD 207.56
billion by 2025 and is expected to grow at a compound annual
growth rate (CAGR) of 8.83% during the forecast period.
We observe year to year growth in Soap and Detergent category
globally. The increasing healthcare awareness coupled with rising
disposable income has categorized soaps and detergents as an
essential consumable products in the developed as well as
developing regions.

But in Ukraine growth was observed only during quarantine period

since 2020- 2021, with war sanctions the market declined for 2
years, and had a backdrop.

Source: Grandviewresearch CAGR, is the mean annual growth rate of an investment over a specified period
of time longer than one year.
Wipes market trends

MARKET 2023 OVERVIEW

Wipes – smallest market among those three.

#1 player accounts for ~70% of the market in value with media
support behind.
The global personal care wipes market size was valued at USD
11.25 billion in 2021 and is estimated to expand at a compound
annual growth rate (CAGR) of 6.2% from 2022 to 2030.
In Ukraine there this 1 big producer of wipes –Corporation
Biosphere with almost 40% market domination. So this segment is
not suitable for high investments.

Source: Grandviewresearch CAGR, is the mean annual growth rate of an investment over a specified period
of time longer than one year.
Market trends
MARKET 2023 OVERVIEW

The global surface disinfectant market grew from $4.44 billion in 2022 to
$4.9 billion in 2023 at a compound annual growth rate (CAGR) of 10.2%.
Market is small in value and isn’t interesting for huge investments.
The Russia-Ukraine war disrupted the chances of global economic recovery
from the COVID-19 pandemic, at least in the short term. The has led to
economic sanctions on multiple countries, a surge in commodity prices, and
supply chain disruptions, causing inflation across goods and services, and
affecting many markets across the globe.
In Ukraine healthcare, hospitality, food & beverage, and residential are the
end-users of surface disinfectants so it’s good category for investing, but it
has number of barriers like: supply problems and delivery on time,
decrease in purchasing power.
.

Source: Researchandmarkets CAGR, is the mean annual growth rate of an investment over a specified
period of time longer than one year.
Competitor landscape Ukraine
MARKET 2023 OVERVIEW

The leaders of the hygiene segment in Ukraine are the international companies:
Proctor&Gamble (23% of Ukrainian market 2020), SC Johnson (USA) (20%),
Reckitt Benckiser (Great Britain), Henkel (USA, EU), Unilever (Great Britain), Amway (USA),
"Vinnytsiapobuthim“ (UA),ABC chemicals ind. (Odessa, UA), Milam (UA), Ficosota (BG)

Proctor&Gamble and SC Johnson took 43% of domestic production.

Among the domestic manufacturers in the market of household chemicals in Ukraine, PrJSC
"Vinnytsiapobuthim" stands out with a share of about 13%.
Main distribution channels are: Hypermarkets & Supermarkets, Drugstores, Pharmacies, E-
Commerce, Special stores: Eva, Wotsons, Prostor.

.
Ukrainian market overview

MARKET 2023 OVERVIEW

Leading companies in Hygiene category by market shares in sales 2020 in Ukraine.
KEY MARKET TRENDS:
The Russia-Ukraine war disrupted the chances of global economic recovery from the
COVID-19 pandemic, at least in the short term. The has led to economic sanctions on
multiple countries, a surge in commodity prices, and supply chain disruptions, causing
inflation across goods and services, and affecting many markets across the globe.
Healthcare, hospitality, food & beverage, and residential are the end-users of surface
disinfectants.

Source: Pro Consulting

MISSION and STRATEGY

SUSTAINABLE GROWTH STRATEGY:

- Improving Digital E-commerce Strategy
- Working on Supply chain improvement
- Customer service
- SKU optimization (soaps and disinfectants)
.
Jobs to be done in Ukraine 2023
Jobs-to-be-Done Measurable Objectives Activity Progress against the
targets
1. To build distribution for Dezzytol product AcNielsen report on Reckitt $100 000 budget 23.06.2023
portfolio of soaps with premium products in numeric distribution. - Product Booklet – Marketing
focus. - Marketing – face to face 48 sale points
Listing in all major Retail chains with 2-4 SKU Non Media -
-Leaflets in KA presentation 120 000
-BTL promo (promoters in KA) people to get 200%
-E-commerce promos, catalogue sales increase during
promo

2 To build brand knowledge and brand ATL $400 000 23.06.2023

awareness focusing on Dezzytol portfolio of 1. Media 42% Reach of communication of product attributes and brand
soaps TA image
3. To create brand positioning and 2. Occupy 5% of Total Digital campaign (YouTube pre-roll)
brand communication platform. Market Volume TV campaign
4. To define brand concept and creative POSM – Marketing – shipments + local
communication based on possible ideas with production
focus on Soap segment.

-range (focus on soaps)

-Media campaign
-Sponsorships
-PR
POSITIONING DEZZYTOL
Emotional Benefit Health always come first

Consumer Benefit Dezzytol soap perfect everyday solution

Rational Benefit Soap with the best quality in the world

Rational Attribute One of the leading [later - N1] soap in Europe and Ukraine with the highest world's strandard in quality

Lively urban inhabitants male and female of 18 - 60 y.o., mainly women, with mid/hi education and mid/upper-
Target Audience: mid income who
is oriented to the Western standards of consumption and seek for affordable high quality products

Slogan: Dezzytol perfect health solution

Mission: Towards a cleaner healthier world

Vision: Become N1 international brand from Europe

Price: Premium segment, high priced – 65 grn

Marketing MIX MODEL

PRODUCT: PLACE
Hypermarkets, supermarkets, pharmacies, drugstores, e-
Portfolio of disinfectants and soaps
commerce stores, Special stores

PRICE: PROMOTION

Premium segment, high priced (over 65 grn) ATL, BTL events in key accounts, sponsorship
EXISTING LEARNINGS & THE CHALLENGE

SEGMENT 1: MALE
TARGET AUDIENCE
SEGMENT 2: FEMALE, MAINLY MOTHERS responsible for
household

AGE: 18 – 60 YEARS

DEZZYTOL 2023 OBJECTIVES

1. Number 1 in Health segment in Ukrainian Goal – grow shares in 2023 to occupy 5% of Total Market
market Volume of soaps in Ukraine
2. Launch the portfolio of products
3. To grab competitors market shares
4. Build Brand Knowledge in Health segment
5. Communicate values of the brand
Media support
Communication strategy
MAIN COMMUNICATION CHANNELS:
What that means for the consumer
ATL SUPPORT
• TV CAMPAIGN
Dezzytol soap perfect everyday solution
• YOUTUBE 15 sec pre-roll
 Announce new Dezzytol soap improved • Social media campaign (Facebook/Instagram)
• PR support (print and digital)
 Protection against wide range of germs (bacteria & viruses)
• E commerce banners (desktop & mobile) in 150 media
 Show 6 variants of soaps • Website branding retailers
• Outdoor around Ukraine
 Knowing when someone’s beliefs or goals differ from one’s own
Media Budget: 400 000 usd
BTL Support
• In store placement to have maximum visibility
• Special shelf branding ( POSM, shelftalkers)
• Action plan around 50 Hypermarkets
SUPPORT ACTIVITIES
Main activities 2023:

• BTL: Hypermarkets METRO (26 stores), AUCHAN (22 stores)

Branding websites of retailers, catalogues participation with new portfolio.
Mechanics: 2 promoters in each store near the shelf help in choosing soap or disinfectant product.

POSM support: Branding retailers shelves, voblers, shelftalkers, posters

• TV: TV company with new commercial

• Communication message: Dezzytol soap perfect everyday solution
• On line banners on 100 websites for building brand awareness

Media budget:
• 400 000 usd

POSM:
• 40 000 usd
THANK YOU FOR ATTENTION!

34