nvp final presentation

SEC Lifestyle Pte Ltd

EZEQUE Skin Therapy

BA065Y New Venture Planning

Prepared by,GROUP A10

Joelle Lau Zhe-YiTng Qiu Fang

Chan SupasasinLee Jia En

Hong Xiang De

Project Description

“We will be conducting a market research to measure the awareness of the

product and understand customers’ needs and buying patterns, as well as to

evaluate the feasibility of expansion into larger markets. A marketing plan will

also be created to implement marketing strategies to improve our ability to retain

and grow business with existing customers, as well as to introduce the product to

new and potential customers. Lastly, we will build a cost-and-benefit analysis to

identify all of the costs associated with this business to ensure it remains on

budget.” 2

Business Description“SEC Lifestyle manufactures skin therapy product, EZEQUE – a non-steroidal and

botanceutical formulation to people who have eczema and for the daily care of dry,

itchy and sensitive skin through online stores and Unity Pharmacy Stores island

wide. It consists of a 2-step application in the form of mist and cream. EZEQUE

provides quick and long-lasting itch-relief while strengthening the skin barrier, and

locks-in hydration in the skin. Therefore, customers will be able to treat eczema,

relieve itchiness and soothe their skin to achieve maximum daily comfort.”

3

STEEP Analysis

4

Social - FavourableConsumer buying behaviour - Online Shopping• 26% of Singaporeans shop online at least once a week and 58%

purchase online at least once a month.• Singapore Government have expected Singaporeans to spend more of

their disposable income online by 2020 due to the rise in technology savvy consumers.

SEC Lifestyle offers both online-to-offline commerce.

Source : Go-Globe, 2016

5

Technology – FavourableConsumer buying trends - Shopping online due to technology development• Businesses are now actively implementing e-commerce as a form of

connecting with stakeholders through online websites and mobile application.• According to Statista, the revenue for food, cosmetics and pharmaceuticals e-

commerce market in Singapore has increased from S$401.36m in 2014 to S$524.81m in 2015.

SEC Lifestyle has an existing online platform and can take advantage of the rising e-commerce trend.

Source: Statista, 2016 6

Environment - UnfavourableProduct Packaging - Singapore Packaging Agreement• Many consumers often throw out the packaging after used only once or not

used at all.• Unnecessary packaging – boxes, casings, plastic wraps, foam wraps• Singapore Packaging Agreement - voluntary agreement for companies to

commit in reducing packaging waste.• 175 signatories• Reduced over 26,000 tonnes of packaging wastes• Saved more than S$58 million

Packaging of EZEQUE is made of plastic bottles and has unnecessary packaging (i.e. boxes). SEC Lifestyle is not under the list of signatories for the SPA.

Source: Ministry of the Environment & Water Resources, 20167

Industry Analysis

8

Wholesale & Retail Retail Pharmaceut

icalBeauty & Personal

CareSkincare

9

• Singapore’s skincare industry has grown by 3% from 2014 to 2015 and its

value is now at S$563 million.

• Operating receipts (2015)

• Skin care industry is at S$564.9 million

• Body care products is at S$15.7 million

Industry Size

Source : Passport, 2016

Key Players• Major industry key players :

10

Key Success Factors

Strong research and development base

Infrastructure, Global Connectivity and Skilled Manpower

Marketing Strategy

Understanding Customers’ Needs

11Source: Singapore Economic Development Board (EDB), 2016

Competitors Analysis

Market Analysis

13

Research Methodology• Quantitative Survey

• Personal Interview

• Quota Sampling

• Total Planned

400 respondents

• Total Actual

438 respondents

14

Age groupPlanned Actual

Eczema Prevention Eczema Prevention24 years old and

below20 40 29 74

25 to 34 years old 60 50 56 5435 to 44 years old 60 50 56 4645 to 54 years old 40 40 38 3855 years old and

above20 20 29 18

TOTAL 200 200 208 230

PREVENTIVE RESPONDENTS

15

A total of 230 respondents DO NOT have issue with dry, itchy skin or eczema were interviewed.

16

Profile of Respondents

Q17. GenderQ18. Age GroupQ19. Marital StatusQ20. OccupationQ21. Monthly Personal Income/ Allowance

53%47%

Gender

Male Female

17

41%

18%

17%

8%

5%3%

3%4%

Income Level

Below S$1,000 S$2,000 to S$2,999 S$3,000 to S$3,999 S$4,000 to S$4,999 S$1,000 to S$1,999 S$5,000 to S$5,999S$6,000 to S$6,999 Above S$8,000 S$7,000 to S$7,999

Awareness & Usage of Brands

No26%

Yes74%

Q2. Have you used any skincare products/moisturisers to prevent dry,

cracked skin before? • Three quarters of the interviewees have used skincare products or moisturizer.• Concerned about their

own skin condition.• Advantage for SEC

Lifestyle.

18

Awareness & Usage of Brands

Cetaphil Physiogel Eucerin QV California Baby

Aveeno EZEQUE Others0

10

20

30

40

50

60

70

80 75

2722 21

11 10

2

43

Q3. If yes, which of the following brands have you used? (You may tick more than one option)

Johnson Baby, Vaseline and Rosken

19

Types of Product Used

Other

Itch relief

Sunblock/Sunscreen

Repair cream

Body wash

Facial cleanser

Moisturiser

0 10 20 30 40 50 60 70 80

7

13

19

26

41

50

73

Q4. What type of product(s) are you using from the above mentioned brand in Question 3? (You may tick more than one option)

20

Awareness of EZEQUE Skin Therapy

Yes4%

No96%

Q5. Have you heard of EZEQUE Skin Therapy?

21

Awareness of EZEQUE Skin Therapy

Family and friends40%

Social media10%

Newspaper / Magazines30%

Retail Stores (Unity Pharmacies / Takashimaya)

20%

Q6. If yes, where have you seen or heard about EZEQUE?

Base : EZEQUE users (10 respondents)

22

Reasons for unwillingness to try:• Brand is unfamiliar.• Does not show concern/ does

not find the need to use.• Feels like it is a waste of money.• Sensitive skin issues.

Usage of EZEQUE Skin Therapy

Q8. If no, why?

Yes53%

No47%

Q7. Would you use EZEQUE if it can prevent dry, cracked, itchy and

scaling skin?

23

BRAND PRICE QUALITY AVAILABILITY EASY TO USE0

20

40

60

80

100

120

140

Factors Influencing Purchasing Behaviour

Q9. Please indicate the level of importance when purchasing dry skin preventive products for each of the following factors. (Rank in order of importance with “1” being the most important, and “5” being the least important.)

73

56

33

24


20

40

60

80

100

120

140


84

25Q9. Please indicate the level of importance when purchasing dry skin preventive products for each of the following factors. (Rank in order of importance with “1” being the most important, and “5” being the least important.)


20

40

60

80

100

120

140

13

Factors Influencing Purchasing Behaviour131



20

40

60

80

100

120

140

91




20

40

60

80

100

120

140

68

15



Type of Ingredients No. of Responses

Natural 211

Non-comedogenic (prevent blockage of pores) 74

Oil-free 65

Alcohol-free 64

Dye-free 54

Petroleum-free 37

Others 3

Q10. Which of the following ingredients would make you more likely to purchase a dry skin preventive product? (You may tick more than one option)

Type of Ingredients Influencing Purchase of Dry Skin Preventive Product

29

Q11. How do you usually get information/learn about a dry skin preventive product? (You may tick more than one option)

Information Sourcing of Dry Skin Preventive Product

Radio

Official website

Newspaper

Television

In Retail Stores

Online Search

Social media

Doctor/Dermatologist

Word of Mouth

0 20 40 60 80 100 120 140 160 180

15

36

40

52

53

57

64

109

165

• Similar results to the eczema interview for top two ways

• May not be able to reach out to many consumers since people these days do not read Newspaper

• Work with Clinics or National Skin Centre

30

Q12. Where do you usually buy your dry skin preventive product? (You may tick more than one option)

Place of Purchase for Dry Skin Preventive Products

Guardian Watson Medical clinics Unity Online stores Official website Other0

20

40

60

80

100

120

140

160145 144

87

60

2315

10

• Similar results to the eczema interview for top three places

• Many do not browse through and purchase products from Unity

• Venture into Guardian or Watson to gain a larger customer base

• Others: NTUC Fairprice and Official retail stores

31

Q13. What will cause you to try out a new dry skin preventive product? (You may tick more than one option)

Factors Influencing Trying of New Dry Skin Preventive Products

Family / Friends Promotions Advertisement Price Brand0

20

40

60

80

100

120

140

160

180

200183

7360

52 51

32

Maximum Amount Willing to Spend

37%

42%11%

3%

2% 5%

Q14. What is the maximum amount you are willing to spend on dry skin preventive products?

S$20S$40S$60S$80S$100More than S$100

33

Maximum Amount Willing to Spend

58%25%

11%

6%

Q15. What is the maximum amount you are willing to spend on a 50ml mist and 50ml cream?

S$30S$40S$50More than S$50

34

Promotions that Attract Consumers Q16. What kind of promotion will most entice you when purchasing dry skin preventive products? (Tick only ONE option)

Cash discounts Product/Sample giveaway

One-for-One Bundle pricings Others0

10

20

30

40

50

60

70

80

7166

48

38

7

35

MARKET SEGMENTATION

& TARGETING36

Demographics

37Source: (Singstat, 2015)

Male and Female15 to 30 years old

Monthly Income < S$4,000

POTENTIAL TARGET MARKET = 279,600 people

Market Size

38

TARGET MARKET279,600 people

53% MARKET VOLUME148,188 people

MARKET VOLUME148,188 people

PRICE OF EZEQUES$48.80

ANNUAL MARKET POTENTIAL

S$7,321,574.40

PERCEPTUAL MAPS

39

CURRENT POSITION – QUALITY & PRICE

40

High Price

Low Quality

High Quality

Low Price

RECOMMENDED POSITION – QUALITY & PRICE

41

High Price

Low Quality

High Quality

Low Price

CURRENT POSITION – VARIETY & TYPE OF RETAILING

42

Store-based retailing

Narrow Variety

Broad Variety

Online retail-ing

RECOMMENDED POSITION – VARIETY & TYPE OF RETAILING

43

Store-based retailing

Narrow Variety

Broad Variety

Online retail-ing

MARKETING OBJECTIVESTo launch EZEQUE’s new packaging by December

2017

To increase sales by 20% by the end of 2017

To venture into online marketplaces by the first

quarter of 2017

To generate S$2.00 increase in sales for every S$1.00 spent on marketing

and communication campaigns

To reach 5,000 likes on the SEC Lifestyle Facebook page and at least 1,000

followers on SEC Lifestyle’s Instagram within a year

44

Marketing Mix Acronym - RELIEVE

45

Valuable (Pricing)

E-commerce(Placing & Promotion)

Low Distribution

Cost(Placing)

Effective (Product

& Promotion)

Internet Marketing (Promotion)

Reachable(Placing)

Easy to Use

(Product)

R

E

L

I

E

E

V

PRODUCT STRATEGY

46

RECOMMENDED – CONTAINER DESIGN

DUAL – CHAMBER CONTAINER

47

Mist

Cream

Semi-transparent

BENEFITS• Dual function – Easy to use• Convenience – On the go use

RECOMMENDED – CONTAINER DESIGN

48

RECOMMENDED – OUTER PACKAGING

BEFORE AFTER

49

PRICING STRATEGY

50

Pricing Objectives

51

Profit Maximization (Planned distribution cost, COGS & other expenses)1

Increase brand image and reputation in the market2

To be priced competitively in the market3

Recommended pricing strategy

52

Cost-Plus Pricing

Venture into online marketplaces

Lower distribution cost Higher profit margin

Value-Based Pricing

New packaging design & natural ingredients

formulation

Raise the perceived value of product

Promotional Pricing

Seasonal discounts

Bundle discounts – buy 4 bottles free 1

PLACING STRATEGY

53

Easily accessible & Reachable by

target audience

Future of distribution

54

Online marketplace - Qoo10

55

Product Offerings All rounded

User base 900, 000 users

LocationsJapan, China, Hong Kong, Indonesia, Malaysia, and

Singapore• Registration• Product listingOnline storefront

Total Transaction Amount = Selling Price + Optional Fee + Shipping Fee

• Depends on Seller Grade & Item Price

• Ranging from 7% to 12% of total transaction amount

1. Seller coupons2. Group buy3. Bidding promotions –

Placements

Online marketplace - lazada

56

Product Offerings All rounded

LocationsMalaysia, Indonesia, Thailand,

Singapore, Philippines and Vietnam • Registration

• Product listingOnline storefront

Note: Must be a registered business in Singapore

• 8% commission for health & beauty products.

• Paid only when items are sold

1. Lazada Affliate Program2. Seller Incentive Program3. Lazada Promotion Tool

(subjected to approval)

Online PLATFORM – HERMO SG

57

• Hermo will be purchasing the products to sell.

• T&C are subjected to both parties’ agreement.

1. Seasonal offers & discounts (subjected to agreements)

2. Registered customers receive vouchers occasionally

Product Offerings Beauty & Wellness

User base 200, 000 users

Locations Indonesia, Malaysia, and Singapore

Partnership concept

PROMOTION STRATEGY

58

Raise brand awareness

among shoppers to induce sales

of EZEQUE

Increase sales by 20% in a year’s time

Convert 800 potential

customers into EZEQUE users within a year

Communication goals

59

RECOMMENDATION STATUS IMPROVEME

NTS

CONTINUE -

RECOMMENDED PROMOTIONAL TOOLS

60


NTS

Email Marketing CONTINUE

Giving out trial kits (first

100 subscribers)


61


NTS

Word-of-Mouth &

Testimonials

CONTINUE

Incentivise WOM

[Offering discounts

(code, vouchers

etc.)]


62


NTS

Search Engine

MarketingCONTINUE

Using Pay-Per-Click

(PPC) Google AdWords


63


NTS

CONTINUEInvest in Facebook Adverts


64


NTS

INTRODUCE

Create IG account &

engage ‘Influencers’


65


NTS

Seasonal Discounts

INTRODUCE

Offer discounts (codes,

vouchers, promo price)


66


NTSINTRODUC

EBid for listings


67


NTSINTRODUC

EEngage

promotional collaborations


68


NTS

INTRODUCE

Give out trial kits,

discounts & brochures


69

Marketing Expenses Forecast

70

Promotional Tools Total

Newspaper S$15, 524

Search engine marketing S$ 18,250

Facebook adverts S$ 18, 250

Instagram- Influencer Marketing S$ 1, 200

Trial kits S$ 3, 000

Qoo10 Advertisement S$ 1, 560

Beauty fair S$ 5, 175

Total S$ 62,959

COST & BENEFITS

71

72

Recommendation Distribution through Online Marketplaces (Qoo10)

Suppliers/ Vendor Qoo10

Cost BUDGET = S$ 15,203.52 (2,400 bottles of EZEQUE x (S$ 48.80 + S$ 3.99)

x 12% Commission Payable)

Method of Measurement Number of users who have bought EZEQUE from Qoo10

Benefits

An additional sales channel to market and sell EZEQUE will help to build brand awareness

More than 50,000 sellers registered accounts on the site and an estimated S$ 10,000 is transacted through Qoo10 each month.

Qoo10 has a total of 900,000 users and 8.5 million visits every 6

months Increase the sales of EZEQUE (large customer base). (Demystify Asia, 2015)

Lower cost of distribution

73

CONCLUSION

nvp final presentation

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