Situation Analysis, fyp, skinfood

CHAPTER 1 : PROJECT OVERVIEW

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1.1 Introduction

Skinfood is a South Korean cosmetics manufacturer with headquarters in Seoul since 1957 that launched their first shop in 2004 in Korea. Skinfood are selling in 12 different countries and generally have 25 branches in Malaysia. Meanwhile, in total Skinfood have total 909 stores worldwide. The motto of their product is “good food for health is also good for the skin” which make them become the first food cosmetic brand developed with a differentiated unique concept of 'food'. Then, because of that, it became a well-known cosmetic and skincare brand in many countries outside South Korea such as Taiwan, Malaysia, Singapore, and others. As seen from their motto, all of their products emphasis from the best and healthiest organic food ingredient scented and bottled according to their design and formulation concepts. One of their avocado products even listed in the Guinness World Records. Avocado which is rich in moisturizing oils and vitamin E. Meanwhile, for example like rice which has a natural whitening agent that help with skin’s discoloration. A few examples are like Tomato which is not only antioxidants, but is also full in vitamin c which can help to make a skin appear brighter. Their logo shows their purity and goodness product and a guardian angel as their mascot sent to protect and carefully guard your skin towards a healthier skin. Basically, this product is suitable for all ranged of age who wants to enhance their beauty appearance but at the same times care about the health and aware on the dangerous of the chemical hazardous cosmetics in current market.

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1.2 Problem Statement and Issues Skinfood cosmetics are known as a food-based product which is suitable for all age group. Therefore, it is logical that Skinfood’s packaging are not intends to directly focused on certain generation but instead their packaging are a bit dull and unattractive enough to grabs the buyers intention from buying Skinfood products. Most female teenagers would prefer to choose Skinfood’s competitor products who offer a more appealing cosmetics packaging. Moreover, most of Skinfood’s competitor already one step ahead by appointed the famous and exclusive ambassador to attract the ambassador’s fanatic fans to use their products. Meanwhile the older female generations are more prefers to choose the cosmetics brands which offer a specific treatment that is suitable for them such as anti-wrinkle and collagen cosmetic. The other reason is Skinfood’s products are always being looked as one of the overpriced products to be compared with the other competitors even though in reality the price is somewhat similar. Therefore many of the potential buyers choose to buy the other brands product. The most critical issues ever happened to Skinfood is regarding the nail polish products made in Korea namely ‘Skin Food Jojoba Pure Nail PK 004’ and ‘Skin Food Milk Creamy Nail Base Coat’ found to contain trace amounts of benzene.

1.3 Objective

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To investigate the brand awareness and people’s perception among the consumers and the target audience. To determine product’s strength and weakness point. To calculate the market situation of food-based cosmetic. To come up with the effective ways of strategy to promote and make the improvement to the brand.

1.4 Aims This project will help to attract the consumers to trust and interested to use the brand. While, this project will enhance the brand awareness to the more specific target market and therefore become a leading brand in food-based cosmetic industry and gain trust among Malaysian people.

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CHAPTER 2 : PROJECT PROFILE

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2.1 Product Name 

Skinfood

2.2 Product Classification 

Skinfood is the cosmetic products which is using food as their based ingredients, which is safe and healthy to users and are not hazardous as the chemical products found in Malaysia. Skinfood is the first company pursuing the food-based method in cosmetics that is ever developed.

2.3 Product Characteristics   

Type : Cosmetics – Skinfood Packaging : inspired by plastic containers for condiments and foods.

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Pricing RANGE : RM 29.90 – RM139.00 Unit Per Sale : Per product

Beauty Care Range : - Make up - Cleansing - Mask/Packs - Body/Hair care - Men/Baby care - Make up tools

2.4 Product Range

2.4.1 Skinfood Skinfood is a safe and healthy cosmetic products that is using food-based ingredient. There are several types of beauty care produce by Skinfood such as make up, cleansing wash, mask and packs, body and hair care product, men care and also make up tools. The products are not only promotes the food ingredient products but also create the awareness on using safe and healthy products for the skin. The product also creates the image of environmental friendly by using the recycle bottle and stickers.

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a) Skinfood’s Skincare Products :

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b) Skinfood’s Make Up Products :

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c) Skinfood’s Cleansing Products

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d) Skinfood’s Mask/Packs

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e) Skinfood’s Body/Hair care

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f) Skinfood’s Men/Baby Care

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g) Skinfood’s Make up Tools :

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2.5 Distribution

Skinfood products are distributed in a direct way. All the products are sold only at the Skinfood stores which are located in retails outlets, supermarkets and hypermarkets worldwide.

2.6 Product Life Circle

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2.7 The Brand

Skinfood is a cosmetic brand for women that are very safe and healthy without any effects to the users. It is a food-based cosmetic that is using fruits and other kind of foods to create the products. Skinfood is a South Korean manufacturer and retailer with the headquarters in Seoul. The main concept for this brand is to create products with nutritional values of food. it was first set up in 1957 and slowly becoming a bigger brand and being sold to the other foreign countries such as Taiwan , Philippines , Hong Kong , Singapore and Malaysia. Besides the food cosmetics that Skinfood pursuing, they also produces other skincare such as cleansing wash, mask and packs, body and hair care products, and also make up tools. All of their products are produced using nature ingredient which is food. they believed that the good food human’s consumed are also good for skin. This gives Malaysian an easy way to use the skincare and cosmetic with no risk and effects to their health in long period of time. Skinfood product used 100% nature ingredients to nourishing the skin.

2.8 Brand Image and Implication The desired brand image for the consumers is to able to experience using the skincare with food based essence to make the consumers being able to enhancing their appearance without worrying the bad effects on their health later on. The brand has a big potential in Malaysia since there are not a lot of other cosmetics brands that offer the same concept as skinfood which is safe and healthy cosmetics using food as their main ingredients in the product itself. Therefore, skinfood brand has a really high value to be compared with others cosmetics brand which are known to test their product on the animal. Skinfood brand image of selling a safe cosmetic product needs to be implemented intensely in the mind of the consumers to make them not SKINFOOD | 14

just choosing Skinfood are not only just affected by the product, but also by the images and identification associated with the brand product itself.

2.9 Strength and Weakness Strengths :         

The first food cosmetic brand developed with a differentiated unique concept of 'food' 100% based on food No side effects on users No hazardous chemicals with cancer risk Using recycle and bio degradable bottles as packaging Not tested on animal One of their avocado products even listed in the Guinness World Records Smell nice with food concentrate Have a lot of variety of skincare lines that consist of skincare products, masks, make up and also make up tools.

Weakness :    

The price is more expensive than Skinfood’s competitors Most consumers still are not aware of the dangerous effects on using chemically produced cosmetics Skinfood stores only available in big shopping complex and urban areas The packaging is not attractive enough

2.10 Advantages and Disadvantages Advantages :      

Eco friendly packaging Are not using chemical as their main ingredient Targeted to broader audiences with a variety of skincare range Affordable price range No side effects on users The retail shop are easier to find in the shopping complex SKINFOOD | 15

Disadvantages :     

Packaging are not attractive for certain target audience Not attractive retail shop concept Consumers always assumed skinfood’s product are overprice Too many competitors in skincare industry Some consumers still not have enough trust towards Korean products.

2.11 Unique Selling Proposition (USP) Skinfood skincare products are the first food cosmetic brand developed with a differentiated unique concept of 'food'. Meanwhile, one of their avocado products even listed in the Guinness World Records

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2.12 Promotional History and Advertising Schedule Skinfood skincare product Promotional activities focus on giving consumers the best deals and services for their skincare products mostly through their website, facebook page , blog , advertisement (printed and commercials) and also all their ground activities.

Promotion deals with a certain duration.

Skinfood Skincare Workshop for Ray Girl Search 2012

Seasonal promotion

television commercial SKINFOOD | 17

Exhibition booth

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Promoting the the eva armisein for skinfood family collection.

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Promoting the new limited edition of eva armisein with the offer if purchase price of rm180 worth of skinfood products will get the limited edition eva armisein handkerchief for free.

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Weekend wonders promotion from 5-7 july with special price.

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Limited time value buys. Buy skinfood product in sets with a great price.

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Seasonal promotion on christmast. Selling items in gift sets with special price.

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Skinfood’s television commercials.

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Exhibition booth in One Utama and Fahrenheit promoting the new skinfood product lines.

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Skinfood cruise contest with cooperation and sponsorship from Mines cruise Malaysia.

2.12 Positioning Statement Skinfood skincare product is an established brand that selling in 12 different countries and generally have 25 branches in Malaysia since 1957 with their first shop launched in 2004.In Malaysia, Skinfood outlets can be found in the supermarkets and hypermarkets nationwide. Skinfood products has a consistent high quality and innovative products that is radiant lasting beauty, enhancing a person appearance and at the same time also provide a healthy and safe risk towards their users by using purely food-based essence ingredients and formulations that are eco-friendly and affordable, targeting the beauty and health conscious individuals.

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CHAPTER 3 : THE COMPANY

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Chapter 3 : The company

3.1 Company Overview Skinfood is is a South Korean skincare and cosmetics manufacturer and retailer, headquarter in Seoul. The owner of the company has been involved in the skincare business since 1957. The main concept of the company is to create products with nutritional values of food. The company slogan is "beauty food for the urban sweety". Skin Food's logo, as seen on all of their products, is a guardian angel. The logo was designed to convey the message to their customers of the purity and goodness in their products. The logo was actually taken from another company and then altered to avoid any legal actions. In addition, the logo also connote that Skin Food is like a guardian angel sent to protect and carefully guard your skin towards a healthier skin. It has 895 stores throughout Korea, located in shopping districts, hypermarkets, shopping malls and residential areas. Skin Food has seen increase in sales from foreign visitors and have opened outlets outside South Korea in countries such as Taiwan, Philippines, China, Malaysia, Singapore, Japan and Hong Kong. Korean actresses Sung Yu-ri and Brazilian singer Stephanie Garden was featured in Skin Food Korea commercials.

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3.2 Business Description In Malaysia, Skinfood has made a huge transformation and innovation to its core product in terms of its branding, packaging and promotion while expanding its range of products to sustain its market and growth in its business. The company continue monitoring the products,market and customer relationship through its many interactive platforms and focusing on providing a quality products through their continuous research and development in improving and producing new products to meet and excedd consumers expectation. Findings from the various scientific researches firmly support the benefits of Skinfood’s product especially in the improvement and performance. The company has also innovated its customer services by making it more effective and accessible and customer friendly. The company has evolved from the traditional approach to contemporary ways of reaching as many segments of the market. They tend to be specific for example like the young, the working adults and the senior citizens. it has also kept up with the times and evolved its forms of communication to include educational and informative webpages on health matters as well as provide a platform for an educational tour through the Skinfood exhibition and promoting new products. To further reach out to the younger generations, the company developed different Facebook accounts to cater to its different product themes such as the Skinfood facebook page and twitter which is easier to targeting younger generation. With a constant and daily updates on these social network, this style of promotion can attract youngsters to try Skinfood product.

3.3 Company History SkinFood is a very recent phenomenon in Korea, a country that is today seen as a fast rising star in the eyes of the world in terms of consumer products. Brands like Samsung, Hyundai, and Kia represent not only good value to consumers but are also perceived to offer good quality and reliable products. The popularity of the Korean dramas in Malaysia is also testament that Korean lifestyle and fashion is well accepted and popular in Malaysia. SkinFood is owned by Peeres Cosmetics in Korea, a company that has been in the business of manufacturing and producing skin care and cosmetic products in Korea since 1957. Their products have also been exported from Korea worldwide and the company is no stranger in Malaysia having supplied direct selling companies like Mode Circle and Peeres Americ in this country. Having spent over 45 years in the traditional mainstream cosmetics business, they with their new management turned their attention to developing a lifestyle brand that was more in tune with the younger consumers in Korea and throughout the world. As a result, a new line of SKINFOOD | 22

skin care and cosmetic products based entirely on the benefits of food was developed in 2003 and the first SkinFood franchise store was opened in the Myeongdong area in Seoul in December 2004. Although, the plan was only to set up between 6 to 8 stores in 2005, the roaring success of SkinFood in Korea has resulted in over 170 franchise SkinFood stores already opened in Korea up to June 2006 with many new stores planned for the remainder 2006. Although, this was primarily a trial for SkinFood, its popularity has not gone unnoticed in the region, within 3 months of opening their first store in Korea, their first franchise store outside Korea was established in Taipei, Taiwan. Today, Taiwan has 30 stores with another 3 undergoing renovation to be opened in the next 2 months. SkinFood has already signed on Master Licensee contracts in Indonesia and Philippines, Singapore has opened 3 stores and will open another in the second half of 2006 and Thailand has already opened 6 stores with another 3 undergoing renovation. Hong Kong opened 5 stores since June 2006. Meanwhile in Malaysia there are 25 branches of outlets.

3.4 Key People Board of Directors Michael Christopher Mehta o Director o Date of appointment (05-04-2005) Cho Yoon Sung o Director o Date of appointment (05-04-2005) Yu Hee Ming o Secretary o Date of appointment (05-04-2005)

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3.5 Location and Subsidiaries

Availability of Skinfood’s worldwide :

More focused in Asia, Skinfood’s skincare product jus has in vertain region and location such as: Malaysia Phone

: 03-55428483(General Line) Operating Hour : 9am to 5pm(Monday – Friday except public holiday)

Mailing Address: Lot 2, Kawasan Miel, Shah Alam Fasa 10, Jalan 23/5, Seksyen 23, 40300 Shah Alam, Selangor Darul Ehsan, Malaysia.

Singapore Phone

: +65 6468 2759(General Line) Operating Hour : 9am to 5pm(Monday – Friday except public holiday)

Mailing Address : 63 Hillview Avenue #10 23 Lam Soon Industrial Building

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Malaysia Retailer Location Where to find :             

Aeon Seri Manjung Fahrenheit Mahkota Cheras Suria Sabah Boulevard Shopping Mall IOI Mall Bintang Plaza Mall KLCC Bukit Indah Shopping Centre Aeon AU2 Gurney Plaza Seberang Perai 1 Borneo

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Kinta City Bukit Tinggi Delta Mall Batu Pahat Mall Jaya Jusco Seremban Alamanda Putrajaya The Mines Queensbay Mall E curve Mid Valley Mahkota Parade Sunway Pyramid One Utama

3.6 Brands, Major Products and Services Skinfood has introduced many products that cater to healthy lifestyle enhancing beauty and appearance. Skinfood is one of the product that focusing on the beauty personal care retail business for protecting our skin without damaging and give bad effects to ourself and environment pollution. Below are the company’s skinfood brand and line production: 

Brands Skinfood

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Products Skincare product

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Services Retail Outlets

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3.7 Corporate Vision 

To be the leading food-based skincare product in the Asia Pacific region by creating value for employees, customers and shareholders.

3.8 Corporate Mission

“To protect your skin for 14years , not just 14 days” is Skinfood mission to create a better healthy life style. They believe that in beauty within food, and that these natural food products will enhance and protect the skin for years to come. It takes great time and effort to produce from initial cultivation of the ingredients, to the design and bottling process of our process. In taking this extra time to create and prepare the products,skinfood can ensure the very best quality for their customers.   

Formulate and developing the topical effects on food and make them into products that can take longer than people anticipate. Developers test all the ingredients that they find, and all products that they develop, themselves : grains,vegetables,fruits. To achieve the best beauty food in the world, skinfood travels all over the world to find the origin of the healthiest food ingredients.

3.9 Company’s Current Promotional Strategy

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Introducing a limited edition of skincare for a certain period of time One of their avocado products even listed in the Guinness World Records Opening exhibition booth in beauty events Using Sung Yu ri(Korean actresses) and Stephanie Garden(Brazillian singer) to be featured in Skinfood Korea Commercials.

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3.10 Product Sales’s History

Graph 3.10 (a) Overview of Sales Growth Balance sheet Items Non-current asset Current asset Non-current liabilities Current liabilities Share capital Reserves Minority Interests

Income Statement Items Revenue Profit / (Loss) before Tax Profit / (Loss) after Tax Net dividend Minority Interests

2010 259,226.00 4,560,036.00 9,983.00 525,059.00 100,000.00 4,184,220.00 0.00 Graph 3.10(b) balance sheet items 2010

2011 288,484.00 4,600,754.00 69,989.00 1,148,180.00 100,000.00 3,571,069.00 0.00

2011

9,239,103.00 824,110.00 613,151.00 0.00 0.00 Graph 3.10 ( c ) Income statement items

11,401,162.00 1,223,212.00 919,527.00 0.00 0.00

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3.11 Current Marketing Objective Skinfood’s marketing objective is to promote the usage of Skinfood food-based ingredient skincare products as the better alternative and to promote public awareness and practice the long term health maintenance. Long Term     

To be the leading food-based skincare product enterprises in the Asia Pacific region by creating value for employees, consumers and shareholders. To be the best food-based skincare product for long lasting solutions. To be the word-class product expertise to millions of women and men across the world and our unique equities make this possible. To further penetrate the food-based industry both in local and global term. To transform Malaysian and make them believe that long lasting beauty can only come from within.

Short Term    

To strengthen and enhance brand identity as well as increase brand awareness to achieve brand loyalty among customers To utilized every possible medium of mass media in advertising activities to reach a wide range of audience that could extend beyond the target audience To exceed sales expectation and sustain a greater growth yearly

3.12 Media Expenditure As a skincare company which has many competitors in cosmetic products market, brand awareness is very low due to minimal expose of the brand and lack of major promotional advertising. As we know it is not easy to make them trust and believe about the product and this strategy to reach out the consumers in using various forms of media, techniques and strategies to capture their attention. At the moment, media expenditure is focused on small scale and big scale advertising involving print media such as newspaper, magazines, as well as online promotion through website, blog, facebook and twitter. So that, TVC’s commercials as strategy to attract their attention. The audience base are already enough to bring Skinfood to another level of marketing. The popular and successful marketing campaigns in the beauty industry often include a free sample and discounts for referrals to lure new customers in, and loyalty programs to keep them. However, they has been success in gaining the brand awareness by distributing their product to more exposed in certain area. SKINFOOD | 28

CHAPTER 4 : CONSUMERS & STAKEHOLDERS

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Chapter 4 : Consumer and Stakeholders 4.1

Currents Consumer’s Characteristics

4.1.1 Demographics :        

4.1.2  

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Age : 20 – 40 Gender : Women & Men Education : college student , post graduated to tertiary Occupation : Students to working adults Allowance range : RM500 – RM 1000 Income Range : RM1000 – RM5000 Race and Ethnicity : All races Geographical Loacation : Urban and Sub-Urban

Psychographics : Perception : refreshing, nourishing, a genuine food-based skincare products with no high risk. Learning: They learning through print media (magazine and newspaper) , digital media (blog, facebook page, website) , broadcast media (press launch, television) and other (environmental factors, friends and family) Motivation and needs : Looking for affordable food-based skincare,desire on promotion,events,discounts as well as nice packaging and no animal based or harmful ingredients. Attitude : willing to try products, confident,passion,well adapt to different environment and energetic, conscious about the use of chemical artificial ingredients in skincare products and concern with beauty without putting health aside. Personality : cares about beauty health,enthusiastic about life, optimistic,easy-going and pleasant. Lifestyle : healthy,modern,smart-spending,active,social gathering events

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4.2

Stakeholder Characteristic

4.2.1 Primary 

Board of Directors Supporting the company and as the representative of the stakeholders to handle corporate management related policies and to make major decisions on company issues,the weight off responsibilities are high as they are responsible for the actions of the company.

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Shareholders They concerned about the market shares. A strong contributor to the company invest money in return of the share in profit.

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Employees Help in manufacturing of of the company. Contributes man-power diligently by carrying out their respective roles in the company as well as meeting performance standards by the company.

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Consumers Provides good quality products to ensure no negative from them such as th very important contributors as they are also has the reason to keep the company alive by purchasing their products and staying loyal to the brand. All the feedback or suggestion from them concerning the products can help to improve the quality of the products.

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Supplier Specific suppliers are important in ensuring product continuity with respect to delivery time, quality of good dependability.

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4.2.2 Secondary   

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Distributors Distributes the products to the consumers Media Concerned in promoting the brand and product publicity Banks The company sources of funding and get loans when business growing as well as to assist in financial matters Competitors Important roles to the company to improve our brand in every aspect and as a direction to us to compare its brands for future enhancement.

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CHAPTER 5 : Industry & Marketplace

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Chapter 5 : Industry and Marketplace 5.1

The Industry

5.1.1 Definition of the industry

Beauty and cosmetic health care are part of vital daily needs for billions of people with thousands of companies involved in their development, production and distribution. Pharmaceuticals in the beauty healthcare industry are one of the biggest sectors in world market concerning the manufacturing of consumer products used for health and cosmetics. This industry covers a wide aspect of retail business in the world as large share of market consist of different market segments including beauty care, skincare, bodycare and haircare. Not many companies in the industries pursuing on healthy nature product but more towards producing chemically substance in their ingredients of product and using powerful technologies such as nano technologies which make the nature food based cosmetic products are hardly compete with those big corporation. Skinfood finally producing the food based skincare product was finally achieved the title as the first food-based skincare produced.

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5.1.2 Shape of Industry Growth in this market is on increasing trend with more products and competitors entering the market. The culture are focusing on personal health but being beauty at the same time. In Malaysia, beauty and personal care still performed well due to increase in personal grooming. The number of people interested in styling their hair and wearing make up are increasing each an every year. However, the urbanites nowadays are a little bit aware about their health which encourage the companies to introduce more nature and food based skincare cosmetics to meet the consumers demand. Surveys show that 38% of those surveyed claimed that they considered on buying skincare products with nature ingredients and only 6% are claimed that they doesn’t care about the ingredients on the skincare they are using. Sales were sustained by increased urbanization, a rise number of women working, and aggressive marketing and promotional activities of the retailers. From wariness of products made in China to safety issues generally, there is a rising trend of consumers seeking out products that do not contain harmful chemicals or are produced naturally with certification. Although naturally positioned products have been growing for some time in western countries, the trend has only recently emerged in Asian countries, with the slower rate in Malaysia. This presented opportunities for players to penetrate and untapped area while suppliers of natural or organic ingredients also benefited from the trend. Chemist and pharmacist in addition are very competitive in their pricing and promotion, worked well with players for in store promotion such as loyalty card. There are more Malaysian are now concerned about their health care and physical appearance and many are now willing to pay a high price to attain their desired look but this is just for certain consumers. What about the young adult or younger who want to try the good personal care? An increase in purchasing power resulted more Malaysian seeking higher quality products and branded beauty care. Advertisement and promotion play the role in health care and beauty care products. The global ranking of major beauty health care manufacturer have not charged since 2006. Additionally, the personal products market consist of fragrances, make up,skincare,hair car and personal hygiene product.

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5.1.3 Development of the Industry The global healthcare and beauty industry had a strong growth in 2005. The personal care product industry boasts roughly 750 companies produced combined with annual revenue of more than $40billion. The 50 largest companies generate almost 70% of the entire revenue. Still, the market will bear competition from small companies that can offers a specialized product or cater to a particular niche market. Healthcare in Malayssia has undergone radical transformations. Earliest pre-colonial medical care was confined to traditional remedies current among local populations of Malays,Chinese and other ethnic groups. The advent of colonialism brought western medical practice. Packaging designers must constantly inject the newest innovations to attract consumer in a constantly evolving and highly competitive market. Keeping ahead of the competition by bringing new and exciting products to market fast, and at the necessary level of quality, present a major engineering challenge. Recent awareness and understanding of the dangerous of paraben material in cosmetics, have shown a knock on effects in cosmetic products.

5.2

The Marketplace

5.2.1 Current condition of the Marketplace Nowadays, there are many skincare and cosmetics products currently on the market and competitors that are promise beautifully. The market of skinfood currently increasing few years back before the competition getting tougher with the new existing skincare and cosmetic product with the same based which is ‘korean cosmetics’. At the moment, skinfood target in recruiting base audience and slowly gaining attracted sales share in the market. 5.2.2 Charges in Marketplace 

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Positive : More competition in the market leads to more effort in innovation , thus boosting the growth of the industry. Negative : More competition in the market leads to more loss in profit and cost of promotion and advertising, which affect greatly to a new brand.

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CHAPTER 6 : COMPETITIVE SITUATION

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Chapter 6 : Competitive Situation 6.1

Direct Competitors

6.1.1 Etude House

Etude House is a cosmetic company established in 1945. It is headquartered in Seoul, South Korea. Etude is considered as the TOP 20 Global Beauty Companies. Etude House was awarded the 'First Brand' prize for the Cosmetics Retail Brand Shop category. Etude officials were presented with the award at the 8th Annual 2010 Korea First Brand Award Ceremony held in Seoul on February 9th. Some one million Korean consumers were polled to select brands in various consumer goods categories based on customer satisfaction for service and product dependability. Etude House was selected as the top brand in the Cosmetics Retail Brand Shop for its commitment to excellence. Etude House brand shops offer consumers a total beauty solution with a range of cosmetics, accessories, skincare, body, fragrances and hair products. Etude officials expressed their gratitude for being recognized as the industry leader by consumers, adding that the brand will continue to strive for excellence in all areas of its business in order to become a global beauty brand leader.

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6.1.2 The Face Shop Korea Co.,Ltd.

Originated from Korea, THEFACESHOP is a leading global retail brand in the upper value segment offering more than 1,000 lavish products ranging from skin care, cosmetic, body care, hair products to accessories. Our slogan, the “Natural Story”, represents over 1,000 high quality products made of 600 natural ingredients such as rice,flower extract, fruits and various herbs. 6.2

Indirect Competitors

6.2.1 Silkygirl

SILKYGIRL is a home-grown color cosmetics brand of Alliance Cosmetics Sdn Bhd. SILKYGIRL is an exciting brand that offers a complete range of colour cosmetics for fun-loving teenagers and young working women wanting to beautify themselves.

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SILKYGIRL is created especially for young Asian women in the age group of 18 to 25, with a number of contrasting demands, with the desire to help them define their own unique personality through a fusion of products and colours. Regardless of one’s features, skin tone or skin type, SILKYGIRL has just the right product that brings out the best in oneself. The SILKYGIRL color palette ranges from bold, fun, romantic and exhilarating hues that easily complements one’s mood and persona. SILKYGIRL aims to help aspiring women look and feel good about and believe in themselves.

6.3 Some of other skincare products competitors

Majolica Majorca

Elianto

Holika Holika

Laneige

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CHAPTER 7 : SWOT ANALYSIS

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Chapter 7 : SWOT Analysis

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CHAPTER 8 : STRATEGY TARGET AUDIENCE

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Chapter 8 : Strategic Target Audience

8.1 Proposed Primary Target Audience 8.1.1 Demographics :        

Age : 20 – 30 years old Gender : Female and Male Education : College student, post graduate to tertiary Occupation : Students to working or young adult Allowance Range : RM500 –RM800 Income Range : RM1500 –RM5000 Race and ethnicity : All races Geographic location : Urban and Sub-urban

8.1.2 Psychographics :  

 

 

Perception : refreshing, nourishing ,a genuine food-based skincare product. Learning : They learning through print media (magazine and newspaper) , digital media(blog,facebook page,website) , broadcast media (press launch ,television, radio) and other (environmental factors , friends and family) Motivation and needs : The needs to make them look fresh and lively, looking for affordable skincare products but with no health risk should be worried. Attitude : Willing to try products, confident, passionate ,well adapt to different environment and energetic,conscious about the use of chemical artificial ingredients in skincare products and concern with beauty without putting health issue aside. Personality : cares about appearance, healthy person, curious, enthusiastic about life,optimistic,easy going and pleasant. Lifestyle : healthy, modern,smart,active,educated.

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8.2 Proposed Secondary Target Audience

      

8.2.1 Demographics : Age : 25 – 35 years old Gender : Female Education : Post graduated to tertiary Occupation : working adults Income range : RM1500 –RM5000 Race and ethnicity : All races Geographic location : urban and sub urban

8.2.2 Psychographics :  

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 

Perception : Cheaper alternative among other existing food based skincare and other popular cosmetics Learning : They learning through print media (magazine and newspaper) , digital media(blog,facebook page,website) , broadcast media (press launch ,television, radio) and other (environmental factors , friends and family) Motivation and needs : The needs to make them look fresh and lively, looking for affordable skincare products but with no health risk should be worried. Attitude : Willing to try products, confident, passionate ,well adapt to different environment and energetic,conscious about the use of chemical artificial ingredients in skincare products and concern with beauty without putting health issue aside. Personality : cares about appearance, healthy person, curious, enthusiastic about life,optimistic,easy going and pleasant. Lifestyle : healthy, modern,smart,active,educated.

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CHAPTER 9 : RESEARCH & DEVELOPMENT

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Chapter 9 : Research and Development 9.1

Marketplace Research

9.1.1

Retailers visit

In order to gather more information regarding the brand, products and process placement in comparison with its competitors, I visited the skinfood outlets in Jaya Jusco Seremban 2. Through physical observation, I am able to acquire product information on the product displayed, and do some small interview with the staff. I was not allowed to take pictures of the products and therefore I was made some small talk with them and asking for information. However, there is no information gathered as they are just a new workers and their manager are not around.

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9.2

Market Observation

Over the weekend, Jaya Jusco Seremban 2 has a continuous walk in customers, but there are only small number of people purchased the products. Below are the findings od my observation at the pharmacy : Place : Skinfood, Jaya Jusco Seremban 2 Time : From 4 pm -6pm Date : 5/7/2013

Total number of customer who check out product : 15 Total number of customer who purchase product : 4

Most customers are checking out the products and then decided to just looking around and not buying the product. Meanwhile, customers who bought the product are the return customers since they entered the outlet with intention to buy something they already think before. Therefore, they didn’t even need the staff to guide them into what is good for them. Mostly the customers who purchased the skinfood product are women age from 25 to 30 years old.

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9.3 Online Survey 106 responses Summary of complete responses

1 . What is your gender?

Female

76

72%

Male

30

28%

2. What is your age group?

Below 20 years old

7

7%

21 - 29 years old

87

82%

30 - 39 years old

6

6%

40 years old and above

6

6%

3. What is your ethnicity?

Malay

79

75%

Chinese

17

16%

Indian

6

6%

Other

4

4% SKINFOOD | 49

4. What is your current profession?

Student

75

69%

Unemployed

4

4%

Employer/Employee

25

23%

Retired

4

4%

RM500 and below

51

48%

RM500 - RM 1500

34

32%

RM1500 - RM3000

13

12%

RM3000 and above

8

8%

never few times in a year few times in one month few times in a week once a day few times in a day

10 9 10 10 30 37

5. What is your monthly income/allowance?

6. How often you use skincare products?

9% 8% 9% 9% 28% 35%

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7. Have you heard about any food-based skincare product?

yes 81 never 26

76% 24%

8. when choosing skincare products,which of the following factors matter to you?

no testing on animal availability product ingredients price quality brand packaging

23 23 48 39 73 38 12

9% 9% 19% 15% 29% 15% 5%

9. which of the following types of ingredients would make you buy a skincare product? petroleum free oil free natural ingredient alcohol free doesn't matter

27 45 85 50 14

12% 20% 38% 23% 6%

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10. have you heard about the SKINFOOD skincare product before?

yes 77 never 29

73% 27%

11. how did you know the existing of SKINFOOD skincare product?

television advertisement magazine advertisement retail outlets social media friends suggestion Other

20 34 59 23 40 11

11% 18% 32% 12% 21% 6%

12. have you ever try using SKINFOOD skincare product?

yes no

39 67

37% 63%

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13. will you continue on using SKINFOOD skincare products? yes no

60 47

56% 44%

Number of daily responses

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9.4 Interview On 10 July 2013, after the phone call I made to Skinfood’s headquarters in Shah Alam, I got the phone number of marketing manager of skinfood and therefore I asked for the information. However, the marketing manager stated that the information is private and confidential. Because of that, I finally bought the information from Suruhanjaya Syarikat Malaysia(SSM).

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CHAPTER 10 : PRECEDENT STUDIES

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Chapter 10 : Precedent Studies 10.1 Advertising Strategies

Television commercials

Leaflet in Mandarin

Skinfood promotions

Skinfood contest

samples

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10.2 Precedent Studies

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CHAPTER 11 : REFERENCES

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Chapter 11 : References

Official website of Skinfood : http://www.skinfood.com.my/ Official Skinfood Facebook page : https://www.facebook.com/skinfoodMY/photos_albums Official Skinfood blog : http://myskinfoodblog.blogspot.com/ Official Skinfood twitter : https://twitter.com/skinfoodMY Research about Korean cosmetics : http://dspace.wul.waseda.ac.jp/dspace/bitstream/2065/35060/1/ShokenBijinesuShuron_2011_9_Reun gsinpinya.pdf Korean cosmetics competitors research :

http://www.youtube.com/watch?v=ZDPCuUcT170 http://www.silkycosmetics.com/ http://www.thefaceshop.net.my/

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CHAPTER 12 : APPENDICES

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Chapter 12 : Appendices

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