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NEW PRODUCT LAUNCH “Maybelline It Girls”
29th October 2014
Presentation Agenda
Company Background
Competitors in the mass
fragrance market Target Market
Product Demand & Supply
Demand Elasticity
5 M
inut
es
15 M
inut
es
Product, Demand Supply and Pricing
Strategic Profile & External Environment
Pricing Strategy
What is Maybelline?
Supplying many products with an optimal price in
almost every category.
Prided itself on bringing innovative products to the
marketplace.
Targeting at women between the ages of 15-49.
Selling in about 90 countries worldwide.
A fashionable global mass-market cosmetics brand
Company Analysis
Competitor’s Analysis
Target Market
Who are the competitors in the market?
Company Analysis
Competitor’s Analysis
Target Market
TOP COMPETITOR’S AD SPEND IN THE MASS FRAGRANCE(Ad spend used as indicator of sales/market share) - D’Herbs, Enchanteur, SilkyGirl, Playboy, Uber, Syahirah, SimplySiti and Shurah
AVON
D'HERBS
ENCHANTEU
R
FOLLO
W ME
HOT PER
FUME
HOTPER
FUME
MUNIF HIJJA
Z
MUSTIKA RATU
PLAYB
OY
SECRET
GARDEN
SHURAH
SILKYG
IRL
SIMPLYS
ITI
SYAHIRAH
UBER0
5,000
10,000
15,000
20,000
25,000
30,000
26,318
20,593
7,160
3,681
11,478
4,6775,495 6,381
21,900
9,755
40 1,350
6,903
2,0532,912
1,438
20132014
Source : Nielsen Ad Spend for Commercial Fragrance, Jan 2013 – Aug 2014
Company Analysis
Competitor’s Analysis
Target Market
TOP COMPETITORS :ENCHANTEUR, ENCHANTEUR PARIS AND ENCHANTEUR LOVE
Led by Wipro Unza Sdn Bhd, Enchanteur is the No 1 brand in the mass market fragrances category in Malaysia*
Positioned to be the “Romantic and Captivating” targeting on young females who wants to smell good and capture the heart of their man,
owned the equity of being the perfume to have on “first date”
*Source: Enchanteur Press Release, 2 Aug 2013
Has 3 main perfume product which are endorsed by renowned celebrity such as
Nelydia Senrose and Sazzy Falak with husband Nash
TOP COMPETITORS :D’HERBS
Company Analysis
Competitor’s Analysis
Target Market
D’Herbs is one of the upcoming local player in the cosmetic fragrance industry
Overall has only 1 perfume line which is Magic Perfume that caters for both male and
female
Company Analysis
Competitor’s Analysis
Target Market
Led by the Alliance Cosmetic Group (ACG), a leading distributor of cosmetics and personal care products in South East Asia market, including Malaysia, Singapore,
Brunei and Indonesia.
Targets the young Malaysian female, aged between 13 years old to 22 years old, urban & semi-urban
Malaysia and Chinese. With its brand proposition of “Girl next door”, Silkygirl has appointed Sharifah Amani, a renowned local actress to be its brand
ambassador for the perfume range that Silkygirl has in place
TOP COMPETITORS :SILKYGIRL
Company Analysis
Competitor’s Analysis
Target Market
Playboy Fragrance is one of the top competing fragrance in the market. Leveraging on an international &
established brand, Playboy Fragrance positions itself as the daring fragrances for women.
Playboy imagery constantly focus on being daring, sexy, wild and have the opposite attraction
TOP COMPETITORS :PLAYBOY FRAGRANCE
Company Analysis
Competitor’s Analysis
Target Market
SimplySiti is a local cosmetic brand founded by Datuk Siti Nurhaliza, a renowned Malaysian icon at the End of
2011
SimplySiti has launched a series of Eau De Parfum range that fits different personalities of the female market,
which is Precious, Memoire and Pure.
TOP COMPETITORS :SIMPLYSITI
Leveraging on key male personalities like Khairul Fahmi, SImplySiti has come up with a Star Search contest that consumers can participate and stand a chance to win a filming contract with Malaysian film Director, David Teo
FROM THE COMPETITIVE SCENE, WE OBSERVE A TREND THAT CAN BE OUR DIFFERENTIATING FACTOR…. Smelling Good is always
about the getting the Opposite Attraction…
Confidence happens when you get approval from the
opposite sex…
Who are the our
target market?
Our Target Market is young Malaysian female, age 15-24…
OUR TARGET MARKET’S DEMOGRAPHIC: 2.12 million Female, Age 15-24
Company Analysis
Competitor’s Analysis
Target Market Source: Q214 Jul13-Jun14 Nielsen Consumer & Media View
0.2% 3.5% 23.3%
42.6%
8.2%
22.3%
No formal educationPrimary Lower SecondaryMiddle Secondary Upper Secondary University/College
15-17 Years 18-19 Years 20-24 Years0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
30.6%
19.8%
49.6%
Series1
69.3%
21.5%
9.1%
MalayChineseIndian/Others
Company Analysis
Competitor’s Analysis
Target Market
Most of them are Students
Source: Q214 Jul13-Jun14 Nielsen Consumer & Media View
1.1% 2.0%
15.7%
51.0%
5.4%
3.8%
11.9%
9.1%
Small BusinessesPMEBOther White CollarStudentsSemi Skilled WorkersUnskilled workersUnemployedHousewives
1.5% 5.4%
11.4%
15.7%
33.3%
12.9%
5.5%
5.0%
2.4%1.9% 5.1%
RM1-750RM751-1000RM1001-1500RM1501-2000RM2001-3000RM3001-4000RM4001-5000RM5001-6000RM6001-7000RM7001-8000Over RM8000
Majority Household Income RM1.5k to RM3k
OUR TARGET MARKET’S DEMOGRAPHIC: 2.12 million Female, Age 15-24
Majority are Urban Centric
Market Centres Other Urban Rural 0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
45.0%
50.0%
28.5%
47.2%
24.3%Series1
Company Analysis
Competitor’s Analysis
Target Market Source: Q214 Jul13-Jun14 Nielsen Consumer & Media View
OUR TARGET MARKET’S PRODUCT USAGE 2.12 million Female, Age 15-24
Liquid Bath
Soap
s
Bath So
ap Bars
Toothpast
e
Cleansin
g Crea
m/ Lotion
Facial
Wash/Sc
rubs
Body/Han
d Creams/
Lotion
Hair Conditioner
Hair Sh
ampoo
Hair Gel/
Mousse/ S
pray
Deodoran
t/Anti- P
erspira
nt
Facial
Moist
uriser
Facial
Mask
s
Fairness
/White
ning Crea
m
Hair Colouran
t/ Blea
ches
Toothbrush
Foundati
on/Make
-Up
Blushers/H
ighlig
hter
Eye M
ake-U
p
Lipstick
Face P
owder
Perfume/E
DT
Nail Varn
ish
Panty
Liners
Sanita
ry Pad
s
Ladies
hair re
mover &
razors
Traditional r
azor
Refilla
ble razo
r
Disposab
le razo
r
Electr
ic or b
attery
shav
er
Any other
razor t
ypes
0.0%
20.0%
40.0%
60.0%
80.0%
100.0%
120.0%
35.4%
Only 35.4% of our target market are using Perfume or Eau De Toilette. This signify potential growth area
Newspaper (Past WeeK)
Magazine (Past Month)
FTA TV (Past WeeK)
Astro TV (Past Week)
Any TV (Past Week)
Powerscreen (Past Week)
Out Of Home (Past
Week)
Radio (Past Week)
In-Store Media (Past
4 Weeks)
Internet Access - Yes
Cinema (Past Month)
0.0%
20.0%
40.0%
60.0%
80.0%
100.0%
120.0%
75.4%
24.6%
77.0%
45.6%
85.7%
14.0%
81.8%
95.8%
84.7%
71.1%
21.8%
Company Analysis
Competitor’s Analysis
Target Market
Source: Q411 Jan11-Dec11 Nielsen Consumer & Media View
TARGET AUDIENCE MEDIA HABITS Media habits will provide the basis to select the right platform to
launch the new product & reach the audience
Economic Components
Product & Distribution
Demand & Supply
Price Elasticity
Pricing Strategy
Product & Distribution
Demand Supply Elasticity Pricing
Maybelline “It” GirlExude The “It” Quality In You
Every Girl Has That “It” Factor Waiting To Be Explored
Expressing Uniqueness & Individuality
Independent Female Who Knows What She Wants (Girl Power)
Maybelline It Girl : Who is she?
Maybelline It Girls
Product & Distribution
Demand Supply Elasticity Pricing
Identity – Glamour Girly GirlScent - Rich & Sweet
Main Components – Vanilla, Cocoa & Grapefruit
Identity – Provocative RebelScent – Aphrodisiac, Woody & Spicy
Main Components – Cinnamon, Sandalwood & Musk
Identity – Trend Setting FashionistaScent – Fresh Floral & Citrusy
Main Components – Bergamot, Patchouli & Rose Germanium
Product & Distribution
Demand Supply Elasticity Pricing
3D Plastic Cap of Each “It” Girl
Icon
100ml (3.4oz) Glass Bottle
Silk-Screened With Product
Details
Aerosol Spray Tube Connecting
Bottle & Cap
Glossy Cylindrical Paper Box
Embossed With Product Details
Paper Box – Shrink Wrapped
Product & Distribution
Demand Supply Elasticity Pricing
Maybelline IT Girls will be distributed to the following channels:
Hypermarkets Pharmacy Store
Product & Distribution
Demand Supply Elasticity Pricing
PRODUCT AT SHELF
Product & Distribution
Demand Supply Elasticity Pricing
Scan on the QR Code & start joining our contest. Win exciting prizes & stand a chance to win a trip to NY Fashion Week
PROMOTIONAL ITEMS : TV COMMERCIAL & PRINT ADVERTISING
PROMOTIONAL ITEMS : BRAND SITE (WEB PAGE)
Product & Distribution
Demand Supply Elasticity Pricing
Demand Curve
Demand Factor
• Exceptions to the law of demand• Changes in interest rate• Changes price of a complement• Changes in taste and preferences• Changes in income of consumers• Changing price of substitute
Product & Distribution
Demand Supply Elasticity Pricing
Supply Curve
Supply Factor
• Technology and cost• Number of the seller• Future expectation• Price of other product
Product & Distribution
Demand Supply Elasticity Pricing
Demand Elasticity
Elasticity of demandElasticity and total revenueCross price elasticityIncome elasticity
i
Product & Distribution
Demand Supply Elasticity Pricing
Elasticity
Product & Distribution
Demand Supply Elasticity Pricing
Elasticity
Product Pricing Place Promotion
Benchmark against Competitor’s Pricing
No Perfume Model Perfume Price
1 Enchanteur
2 D’Herbs Magic Perfume
3 Silky Girl
4 Simply Siti
5 Playboy
• Our pricing strategy is benchmark against the leading perfume brand, Enchanteur’s pricing
• Our strategic is to price our product slightly below the leading competitor to encourage product switching and gain market share. This is attributed to the fact that the mass fragrance market is elastic
Product Pricing Place Promotion
Our Pricing Strategy
No Perfume Model Bottle Price Tag Refill Price Tag
1 Park Avenue RM 41.90 RM 19.90
2 Model Off Duty RM 37.90 RM 17.90
3 Sexy Bomb Shell RM 34.90 RM 15.90
• Different pricing is given for different model
Q & A
THANK YOU!
APPENDIX
Short Term Projection
Short Term Projection
ASSUMPTIONS
Projection for the 3 Year
Product are sales through 3 phase. The average sales growth is 0.5% per month in the first year, 0.3% per month in the 2nd year and 0.1 % per month in the third year. T
Any increase in cost will be covered by customers or offset by learning effect of the production, Therefore contribution margin per unit will be constant throughout the period.
The distribution cost is 5% of the sales Promotion expenses are RM200, 000 for the first month launching the product. This will reduced in 5 % each month
The promotion cost will increase again to RM 200,000 in June 2014 and December 2014 in order to stimulate the sales during the period
Short Term Projection
Long Term Projection
Short Term Projection