Introduction and Overview

Our market analysts have provided us with a range of data points for us to plan our
launch. We currently sell Dettol in Leopolis, a market with comparable demographic
trends across channels and income level distribution. Our analysts have therefore
given us some historical data on Leopolis and paired it with DreamLand market
research.

Overall, considering all revenue streams for 2020, Dettol will account for 20% of
sales in the Health division in DreamLand. Our data indicates that 78% of the
residents of DreamLand purchase a product in this category 3 times per year. RB will
continue to manufacture Dettol from a centralized plant but will have to contend with
rising costs. In the coming year, all producers will have to manage their forecasting
carefully as the market is expecting a 9% increase in the cost of raw materials,
although all other production costs will remain constant. Thankfully, the entire market
is set to grow by 11% in 2020. DreamLand is a market with only a few direct
competitors, and our research has shown that the average pricing for comparable
products is £3.30.

RB Historical Data from Leopolis (Market Share [%] and Average Pricing [£] by
Channel)

DreamLand Consumer Segments, Preferences, and Growth Rate

Definitions

Projected Growth in Consumer Segments (2019-2022)

DreamLand Channels Data

Modern Trade
This is the largest channel in DreamLand. In 2019, it represents 68% of volume sold,
although is projected to decrease in 2020 by 3%. The channel covers a variety of
outlets including supermarkets, discounters, department stores and some (larger)
convenience stores. They are characterized by being self-service and are usually
part of a chain. Increasingly these stores are selling every product (including fresh
produce) that consumers are looking to buy.

Traditional Trade
Traditional Trade outlets come in many forms ranging from mobile vendors to
permanent outlets. They are generally small and not self-service. The high level of
personal service they offer allows the shopkeeper to heavily influence a customer's
purchases. In DreamLand, they currently account for 27% of volume in the product
category we will be selling, and will be decreasing to 23% in 2020. Due to their size,
they can only stock a limited product range. In the past, they have been located
across DreamLand, but with the ubiquity of Modern Trade stores, they have been
forced out of many urban areas.

e-Commerce
Consumers are increasingly buying groceries, household products, clothing,
gadgets, and many other products online because it offers conveniences that brick-
and-mortar stores cannot. It also offers a more personalized shopping experience
based on consumers' needs and spending patterns.

While e-Commerce represents 5% of DreamLand's purchases in our product

segment, industry analysts forecast that it will grow to 12% by next year. Retailers,
 however, need to alleviate several barriers to drive their share of the consumer e-
Commerce wallet --- from the desire to examine an item before buying it, to a lack of
trust that retailers will meet expectations of quality of products.

Glossary
 Average basket size - the number/value of products sold in a single purchase
 Conversion rates - the percentage of visitors to a site that becomes customers
 Customer acquisition cost - the total cost spent in a defined period of time on
customer acquisition, divided by total customers
 Device segmentation - the proportion of site visits by device type (e.g., smartphone,
desktop)
 Net Promoter Score - an index measuring the willingness of customers to
recommend a company's products to others
 Recommendation conversions - the percentage of "recommended" products sold
 Subscription rates - the number of customers purchasing products through
subscription services
 Time on item - amount of time a person spends on an item page
 Visits per page - the number of times a particular product page is viewed