sasa geo
DESCRIPTION
TRANSCRIPT
Peter FontanaPeter FontanaKelly WilsonKelly WilsonGeorge LazarGeorge LazarHsin-Yi TaiHsin-Yi Tai
Group 2
Sasa • Low prices
• Broad product selection
• Convenient retail locations
• 25% market share in Hong Kong
• High brand recognition in many Asian countries
Market Environment
• Pro-Business environment
• Shopping tourism
• High percentage of Imported products
• A shorter product life cycle
About Sasa1978
1985
1989
The Essence of Success
• Mark down the MSRP
• Parallel importation
• Listen to the market’s voices
• Avoid overstocking
The Essence of Success
• Flagship Store
• Transaction efficiency
• Intensive job training
The Challenge
• Growing business • New competion• Supply chain issues
Solution• Diversification Strategy
Solution• Channels to Market
New Retail Format• New Retail Format
Competitiors• Other cosmetics discounters:
-Bonjour cosmetics-Rainbow group
• Drugstore chians-Watson’s-Mannings
• Department and specialty sotres
How can Sasa better leverage its brand equity?
• When in doubt look at your history
1978Opened Business
1981Expanded
1985ExpandedAgain
199510 Stores
1997IPO
ForeignExpansion
1999FlagshipStore
Store Brand
First Loss
Hired Professionals
2000AcquiredPhilip Wain
PremiumStore
Launchedecommerce
2001EnteredChina
Health foods
Self Service Stores
What Next?
Turnover
126
160 162 168184
0
20
40
60
80
100
120
140
160
180
200
1997 1998 1999 2000 2001
Sales ('000)
Innovation Professionalism
Value
Customer Customer
Cus
tom
erSteady Growth
Brand Truth
Brand Essence
• Value for Money• Convenience• Trendy• Product expertise• Established• Women centric
Brand Identity
• Underground indiscreet cosmetic counter
• Evolved into a mass cosmetic retailer
• Diversified into fitness
More than a cosmetics retailer. A Holistic Beauty and Wellness provider.
Opportunities
Cosmetics
Fitness
Wellness
Food
Beauty
Media
Training Centre
Lifestyle
How to improve profitability and maintain growth?
Where are the customers shopping?
Sasa Bonjour Rainbow
Skincare (in %) (in %) (in %)
Tier 1 Shiseido 42 31 22
Tier 2 Ultima 13 9 6
Tier 3 Revlon 14 14
Fragrance
Tier 1 Calvin K 42 40 49
Tier 2 Red Earth 7
Tier 3 Ponds 4
Cosmetics
Tier 1 Shiseido 31 28 5
Tier 2 Red Earth 5 5
Tier 3 Body Shop 11 3 28
Sasa Vs. GoliathSasa Dep. Store Specialty Shops
Skincare (in %) (in %) (in %)
Tier 1 Shiseido 42 63 20
Tier 2 Ultima 13 20 49
Tier 3 Revlon 14 18 32
Fragrance
Tier 1 Calvin K 42 66 20
Tier 2 Red Earth 7 12 3
Tier 3 Ponds 4 3 46
Cosmetics
Tier 1 Shiseido 31 70 15
Tier 2 Red Earth 5 14 29
Tier 3 Body Shop 11 5 50
SegmentationSasa Bonjour Rainbow
TOM
Real Spender 19 6 -
Value Seeker 29 5
Convenience Seeker 23 18 4
Purchase
Real Spender 57 31 4
Value Seeker 50 37 5
Convenience Seeker 41 21 5
Where is she spending?Sasa Bonjour Rainbow
Age (in %) (in %) (in %)
15-19 11 16 20
20-29 29 31 28
30-39 27 18 17
40-49 22 24 27
50-64 11 9 8
Working Status
Full time 48 41 22
Part time 7 7 6
Students 15 17 29
Housewives 19 20 31
Retired/Unemployed 8 11 12
Mon. Personal Income $1,732 $1,373 $1,243
Mon. Household Income
$4,884 $4,008 $3,981
Sasa Woman
• She is middle aged• Busy career woman• High Income bracket• Likely to be more
demanding• Places a premium on
time and product knowledge of sales staff
Who they are missing out on?
• The younger demographic
• Age 15-19
Why are they important?
• Cosmetics commands immense loyalty
• From being in their consideration set to actually being the preferred retailer brand
• Customer Lifetime Value
Why is branding critical?
• It’s a very competitive market
• Profit margins are high
• Low entry barriers
• The products conjure an imagery of beauty, sophistication, a better lifestyle
• Its important that the buying experience matches the customer expectations
How can Sasa grow its brand?
Recommendation
• Communicate the brand position to increase brand credibility
• Make the brand relevant to the core TG
• ‘Available at Sasa and other fine stores’
• Diversify into Holistic Health and Wellness business
• Go Franchisee route to increase more brand touch points
IMC Campaign
• Targeted at teenagers and urban working women
• Focused on range of products, premium imagery and value
• Sasa is the brand that you can look up to
Objective:To reach out to the teenageaudience, to move from theirconsideration set to the preferredretailer.
Desired response:To influence the beauty consciousteens to shop at Sasa.
Objective:Communication highlightingthe range of brands they stock. An exercise in associationbranding.
Desired response:Sasa is a premium retailer stocking the leading cosmeticbrands
Objective:To reiterate its discount retailingheritage.
Desired response:To drive home the point thatSasa is value for money.
Go Pink!