SUMATRA-LTD
Performance Summary March ‘11
Table of Contents
• • • • • • • • • •
Core Business………………..3 Regional Scope………………4 Store Formats……………..….6 Positioning…………………..15 Chain Development.………..16 Merchandising Standards….24 Assortment.………………….29 Selling Technology………....32 Customers…………………...42 Loyalty Program………….....46
• • • • • • • • • •
Gift Cards..………………….48 COSMO Drugstores..……...49 Company Magazine…..…...53 Catalogues..………………...61 WEB….….…………………..64 Office………………………...66 Management………………..71 Media..……………………….78 Charity Projects.…………….85 Social Engagement..……….86
Core Business COSMO – a nationwide retail chain selling cosmetics, perfumes, and household items
Regional Scope 100 locations in 25 cities (12 oblasts) across Ukraine • • • • • • • • • • •
Kyiv (54) Alchevsk (2) Bila Tserkov (2) Boryspil Boyarka Bucha (2) Chervonohrad (2) Chernihiv (2) Chernivtsi Drohobych Fastiv (2)
Lviv
Slavutych
Regional Scope
Chernivtsi
Vinnytsya
• • • • • • • • • • • • • •
Kharkiv (2) Khmelnytsky Luhansk (3) Lviv (5) Mykolayiv Mukachevo Neteshin (2) Rivne (2) Slavutych (2) Stryi Uzhgorod Vinnytsya (3) Yuzhnoukrayinsk (2) Zhytomyr (4)
Store Format
• • • •
Supermarket Pass-by Upscale store Neighborhood store
Supermarket • Located in the downtown area/shopping mall/at automobile and pedestrian road junctions • The broadest assortment, with an emphasis on the scope of business • TA – shoppers who visit the store on purpose, passers-by, neighborhood residents • Number of checks per day -800-1200
Supermarket
Pass-by • Located on the way to/from work/at transport junctions, 10 m max away from bus stops or in underground passages • The front of the store is visible from the street and bus stops • Intended mostly for passers-by and neighborhood residents • Number of checks per day – 600-800
Pass-by
Upscale Store • Located on the 1st or 2nd level of a shopping mall, in the downtown, or in a traditional shopping area • A broad range of premium cosmetic brands and perfumes is a characteristic feature • TA – mall visitors, office workers, neighborhood residents • Number of checks per day – 200-700
Upscale Store
Neighborhood Store • Intended for people in the neighborhood, usually located in a “sleeping area” with a minimum of 6,000 households • The front of the store is visible from the street/bus stop, an open-air market or a grocery store is nearby • Product mix dominated by medium and lower-end household items and family products • Number of checks per day – 300-600
Neighborhood Store
Positioning
• Convenience
• •Удобство Pleasure from shopping
• Broad product range
Chain Development First COSMO stores
2001
Chain Development Store Opening Stages • Identify location search criteria and chain development directions • Develop a map of priority regions where new stores should be opened • Look for locations, negotiate lease terms, make an estimate for each project, and make a list of the most attractive offers
Develop a map of priority regions
Chain Development • Estimate potential revenues at selected locations • New locations are submitted for approval to the Location Approval Committee • Develop a store opening plan • Sign a lease • Obtain permit documentation to open the store • Conduct remodeling and renovations • Design layout
The meeting of the Location Approval Committee
Developing a store opening plan
Chain Development • Order and install equipment (store and electronic) • Make contracts with suppliers, order, receive, and arrange products • Recruit and train staff • Put in security system • Complete store interior design • Organize grand opening
Visit the location
Make measurements
Chain Development Begin remodeling
Make store design layout
Chain Development Receive and set up store equipment
Product layout
Chain Development Complete interior design
Train new staff
Chain Development
Grand opening
Merchandising Standards
Merchandising Standards Main Store Equipment
Shelves, side shelves, shopping carts
Cash registers, area near cash registers, bins and sample displays
Lockers, anti-theft system
Security system elements
Merchandising Standards
Makeup stand
Supplier stand
Merchandising Standards
A skin care island shelf
A side shelf
Merchandising Standards
Wall shelves
Shopping baskets
A hook shelf for ancillary products
Wall shelves for perfumes
Product Range
• Perfumes
• Makeup
Product Range
• Baby and child products
• Skin, body, and hair care • Personal care and hygiene products • Wellness products • Gift sets and accessories
Product Range • Ancillary products: stationery, newspapers/magazines, products for outdoor activities, food, underwear, hosiery, etc.
• Men’s products
• Household products
The Selling Technology Stages of a selling process • Achieve agreement with suppliers • Check goods for compliance with quality standards • Negotiate contract terms & conditions • Sign contracts • Add new products to the database • Calculate shelf space
Negotiations with suppliers
Product layout review
The Selling Technology • • • • • • • • • •
Goods arrive at the store Unload Delivery to receiving area Quantity & quality verification Goods moved to the warehouse Storage Preparation for sale Goods moved to retail area Goods placed on shelves Customer service
Delivery
Moving to warehouse
The Selling Technology
Storage
Inventory management
Products being placed on shelves
The Selling Technology Trade Marketing & Advertisement • Store Interior Design
Shop windows
Promotional displays
Promotional/special offer announcements in a frame
Toppers
The Selling Technology Tester stands
Price tag holders
Branded anti-theft system
The Selling Technology
Wobblers
Ads
Ad banners
The Selling Technology
Promo baskets with a banner
Stoppers
The Selling Technology
Branded stands
Good deals
Promo baskets at the entrance
Manufacturer’s equipment
The Selling Technology • Promo events
Gifts handed out at the cash register
Spraying
Supplier consultants offering their services
The Selling Technology • Advertisement, special offers and promotions, visual promo support Advertisement and special offer announcements in COSMO GUIDE
Special offers and value deals advertised on billboards
Metro stickers
The Customers Receive a COSMO flyer through the mail
1
3
• The shopping process (Case 1)
2
Ask salesperson about the special offer
4
‌ or exposure to advertisement in the metro
Make the purchase
The Customers
6
5
Buy ancillary products
7
Pick new purchases from the chain catalogue
Use products at home
The Customers • (Case 2)
1
Exposure to COSMO lightbox in a shopping mall
2
Pick items to purchase
3
Take a COSMO catalogue upon leaving the store
The Customers • (Case 3)
1
See a COSMO coupon in a fashion magazine
2
Use the coupon when paying for the purchase
3
Take a COSMO catalogue upon leaving the store
Loyalty Program COSMO Club
A COSMO Club membership card makes the holder entitled to a 5% discount at COSMO stores and pharmacies Number of holders - 1 million
Loyalty Program
1
2
1
COSMO store
2
COSMO pharmacy
Gift Cards COSMO gift cards in various denominations
COSMO Pharmacy
24 locations in Ukraine • Kyiv (8) • Alchevsk • Bila Tserkva • Bucha • Chervonohrad
COSMO Pharmacy • • • • • •
Fastiv Lugansk Lviv Netishyn Slavutych Yuzhnoukrayinsk
COSMO Pharmacy Product Range • Medications • Additives and herbs • Mother & child products • Hygiene products • Medicinal cosmetics • Use-at-home medical equipment • Aromatherapy and preventive care
COSMO Pharmacy
Company Magazine КОSМО news Published monthly Circulation – 70,000 copies
Company Magazine Promotion 70 posters (A2) in COSMO stores Advertisement in catalogue COSMO GUIDE. Circulation – 1,6 mln copies 20 arches + 613 stickers in Kiev underground
Promo through Ukrainian celebrities. Every month readers have a chance to win special prize from celebrity
Price Catalogues COSMO GUIDE Circulation – 1,600,000 Periodicity - monthly Every issue advertises about 200 items at discount prices + special offer advertisements + coupons + value deals from partners
Price Catalogues Distribution (free of charge) • In all COSMO stores and pharmacies (stands in the retail area and outside near the entrance) • Placed in mailboxes in residential buildings near COSMO stores • A mini version is inserted in COSMO News magazine (for copies distributed outside the chain) • In all partner chains / beauty salons
Price Catalogues Aptechnyi Visnyk / Pharmacy Bulletin Circulation – 200,000 Periodicity - monthly Available free of charge at all COSMO pharmacies
Web Company website http://www.kosmo.ua • 40,000 visitors viewing 300,000 pages each month
Web Company magazine website www.kosmonews.com.ua • Every month subscribers to company news mail and other active site visitors have a chance to win one of 1000 cosmetic gifts
Web SMM • The number of COSMO fans/followers in social networks reaches 16,000 ppl
COSMO fanpage in Facebook
COSMO fan-page in Vkontante.ru
Office
A parking lot for company cars adjacent to the office building
A small park with a lawn and recreation space for employees
Administration reception area
Office
Business Development Dept.
Accounting Office
Finance Dept.
Category Management Dept.
Office
IT Dept.
Administration
Training Center
Office Staff training
Office
Warehouse
Management
Sergey Bartoshchuk, Supervisory Board Chairman
Viktor Boyko, President
Management
Igor Lyutyi, Operations Director
Vitaly Paziy, Director
Management
Denis Basylyk, Marketing Director
Vitaly Tokarev, Financial Director
Dmytry Nazdrin, Head of Retail Chain Management Dept.
Management
Vadym Gavrilov, HR Director
Natalia Obukhova, Chief Accountant
Management
Irina Dudenkova, Head of Category Management Dept.
Yevgeniy Barmin, Head of Administration & Maintenance Dept.
Media Television
Shooting a video for 1+1 News
Media Fashion media
Product placement in Prevention magazine, published by Independent Media
Media
Product placement in Lisa magazine, published by Burda
Media
Media Business Publications
A joint project with the Komsomolskaya Pravda
A news column in the Investgazeta
Media
An analytical article in Torgovoye Delo magazine. Shown on all of the photos are COSMO stores and COSMO staff
An interview with the ex-General Director in PRORetail magazine
Media On-line media
An article about corporate media on the Media Business portal
News release about COSMO store openings on retail and real estate portals
Charity Projects • Orphanages • Senior centers • Veterans’ and invalids’ societies • Red Cross in Ukraine
An orphanage in Vyshgorod
An orphanage in Boyarka
Social Engagement Discounts for the socially vulnerable COSMO pharmacies offer permanent discounts to all people with disabilities and retirees
A discount program for retirees and students at COSMO stores
Social Engagement Rooms for babies and children COSMO stores offer special rooms for children, as well as for nursing mothers, with changing tables for babies
Social Engagement Ukraine’s Gifted Children Program Grigory Chapkis, dancer, Merited Artist of Ukraine
Gifts to all children from COSMO
The kids’ team, led by the COSMO ex-Director, is ready for a game of bowling
Social Engagement A Pavlo Tabakov concert
COSMO – the main sponsor of a concert tour of Ukrainian singer Pavlo Tabakov and Orpheus band, 2007
Thank you for attention !