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Maybelline is launching a new fragrance product line called "It Girls" targeted at young Malaysian females aged 15-24. There are three fragrances - Glamour Girly Girl, Provocative Rebel, and Trend Setting Fashionista. The product will be priced slightly below the market leader Enchanteur to gain market share in the elastic mass fragrance market. A promotional campaign including TV, print, and digital advertising will launch in October 2014 to drive initial sales. Financial projections estimate sales will grow slowly over the first three years as distribution expands and promotional activities are implemented.
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- 1. NEW PRODUCT LAUNCH “MaybellineIt Girls” 29th October 2014
- 2. Presentation Agenda Company Background Competitors in themass fragrance market Target Market Product Demand & Supply Demand Elasticity 5Minutes15Minutes Product, Demand Supply and Pricing Strategic Profile & External Environment Pricing Strategy
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- 4. Supplying many products withan 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
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- 6. Company Analysis Competitor’s Analysis Target Market TOP COMPETITOR’S ADSPEND 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’Herbsis 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 theAlliance 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 isone 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 alocal 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 COMPETITIVESCENE, 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…
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- 14. Our Target Marketis young Malaysian female, age 15-24…
- 15. OUR TARGET MARKET’SDEMOGRAPHIC: 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 themare 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: Q214Jul13-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) FTATV (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 GirlyGirl 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 ofEach “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 Girlswill 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 theQR 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 DemandCurve 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 SupplyCurve Supply Factor • Technology and cost • Number of the seller • Future expectation • Price of other product
- 30. Product & Distribution Demand Supply Elasticity Pricing DemandElasticity Elasticity of demand Elasticity and total revenue Cross price elasticity Income elasticity i
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- 34. Product Pricing PlacePromotion 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 PlacePromotion 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
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- 40. ASSUMPTIONS Projection for the3 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
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