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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
5Minutes15Minutes
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
26,318
20,593
7,160
3,681
11,478
4,677
5,495
6,381
21,900
9,755
40
1,350
6,903
2,053
2,912
1,438
0
5,000
10,000
15,000
20,000
25,000
30,000
2013
2014
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 education
Primary
Lower Secondary
Middle Secondary
Upper Secondary
University/College
30.6%
19.8%
49.6%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
15-17 Years 18-19 Years 20-24 Years
15-17 Years
18-19 Years
20-24 Years
69.3%
21.5%
9.1%
Malay
Chinese
Indian/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 Businesses
PMEB
Other White Collar
Students
Semi Skilled Workers
Unskilled workers
Unemployed
Housewives
1.5%
5.4%
11.4%
15.7%
33.3%
12.9%
5.5%
5.0%
2.4%
1.9%5.1%
RM1-750
RM751-1000
RM1001-1500
RM1501-2000
RM2001-3000
RM3001-4000
RM4001-5000
RM5001-6000
RM6001-7000
Majority Household Income RM1.5k to RM3k
OUR TARGET MARKET’S DEMOGRAPHIC:
2.12 million Female, Age 15-24
Majority are Urban Centric
28.5%
47.2%
24.3%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
45.0%
50.0%
Market Centres Other Urban Rural
Market Centres
Other Urban
Rural
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
35.4%
0.0%
20.0%
40.0%
60.0%
80.0%
100.0%
120.0%
Only 35.4% of our target market are using Perfume or
Eau De Toilette. This signify potential growth area
75.4%
24.6%
77.0%
45.6%
85.7%
14.0%
81.8%
95.8%
84.7%
71.1%
21.8%
0.0%
20.0%
40.0%
60.0%
80.0%
100.0%
120.0%
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)
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” Girl
Exude 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 Girl
Scent
- Rich & Sweet
Main Components
– Vanilla, Cocoa & Grapefruit
Identity
– Provocative Rebel
Scent
– Aphrodisiac, Woody & Spicy
Main Components
– Cinnamon, Sandalwood & Musk
Identity
– Trend Setting Fashionista
Scent
– 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 demand
Elasticity and total revenue
Cross price elasticity
Income 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

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economict presentation

  • 1. NEW PRODUCT LAUNCH “Maybelline It Girls” 29th October 2014
  • 2. Presentation Agenda Company Background Competitors in the mass fragrance market Target Market Product Demand & Supply Demand Elasticity 5Minutes15Minutes Product, Demand Supply and Pricing Strategic Profile & External Environment Pricing Strategy
  • 4. 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
  • 6. 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 26,318 20,593 7,160 3,681 11,478 4,677 5,495 6,381 21,900 9,755 40 1,350 6,903 2,053 2,912 1,438 0 5,000 10,000 15,000 20,000 25,000 30,000 2013 2014 Source : Nielsen Ad Spend for Commercial Fragrance, Jan 2013 – Aug 2014
  • 7. 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
  • 8. 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
  • 9. 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
  • 10. 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
  • 11. 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
  • 12. 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…
  • 14. Our Target Market is young Malaysian female, age 15-24…
  • 15. 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 education Primary Lower Secondary Middle Secondary Upper Secondary University/College 30.6% 19.8% 49.6% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 15-17 Years 18-19 Years 20-24 Years 15-17 Years 18-19 Years 20-24 Years 69.3% 21.5% 9.1% Malay Chinese Indian/Others
  • 16. 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 Businesses PMEB Other White Collar Students Semi Skilled Workers Unskilled workers Unemployed Housewives 1.5% 5.4% 11.4% 15.7% 33.3% 12.9% 5.5% 5.0% 2.4% 1.9%5.1% RM1-750 RM751-1000 RM1001-1500 RM1501-2000 RM2001-3000 RM3001-4000 RM4001-5000 RM5001-6000 RM6001-7000 Majority Household Income RM1.5k to RM3k OUR TARGET MARKET’S DEMOGRAPHIC: 2.12 million Female, Age 15-24 Majority are Urban Centric 28.5% 47.2% 24.3% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0% 50.0% Market Centres Other Urban Rural Market Centres Other Urban Rural
  • 17. 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 35.4% 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% 120.0% Only 35.4% of our target market are using Perfume or Eau De Toilette. This signify potential growth area
  • 18. 75.4% 24.6% 77.0% 45.6% 85.7% 14.0% 81.8% 95.8% 84.7% 71.1% 21.8% 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% 120.0% 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) 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
  • 19. Economic Components Product & Distribution Demand & Supply Price Elasticity Pricing Strategy
  • 20. Product & Distribution Demand Supply Elasticity Pricing Maybelline “It” Girl Exude 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?
  • 21. Maybelline It Girls Product & Distribution Demand Supply Elasticity Pricing
  • 22. Identity – Glamour Girly Girl Scent - Rich & Sweet Main Components – Vanilla, Cocoa & Grapefruit Identity – Provocative Rebel Scent – Aphrodisiac, Woody & Spicy Main Components – Cinnamon, Sandalwood & Musk Identity – Trend Setting Fashionista Scent – Fresh Floral & Citrusy Main Components – Bergamot, Patchouli & Rose Germanium Product & Distribution Demand Supply Elasticity Pricing
  • 23. 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
  • 24. Maybelline IT Girls will be distributed to the following channels: Hypermarkets Pharmacy Store Product & Distribution Demand Supply Elasticity Pricing
  • 25. PRODUCT AT SHELF Product & Distribution Demand Supply Elasticity Pricing
  • 26. 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
  • 27. PROMOTIONAL ITEMS : BRAND SITE (WEB PAGE)
  • 28. 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
  • 29. Product & Distribution Demand Supply Elasticity Pricing Supply Curve Supply Factor • Technology and cost • Number of the seller • Future expectation • Price of other product
  • 30. Product & Distribution Demand Supply Elasticity Pricing Demand Elasticity Elasticity of demand Elasticity and total revenue Cross price elasticity Income elasticity i
  • 33.
  • 34. 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
  • 35. 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
  • 36. Q & A
  • 40. 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