economict presentation

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


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


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


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


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


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


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


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


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


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


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


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



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



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



Maybelline IT Girls will be distributed to the following channels:

Hypermarkets Pharmacy Store



PRODUCT AT SHELF



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)



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



Supply Curve

Supply Factor

• Technology and cost• Number of the seller• Future expectation• Price of other product



Demand Elasticity

Elasticity of demandElasticity and total revenueCross price elasticityIncome elasticity

i



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

THANK YOU!

APPENDIX

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


Long Term Projection

economict presentation

Government & Nonprofit