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SEC Lifestyle Expands EZEQUE Skin Therapy Market Research
- 1. SEC Lifestyle Pte Ltd EZEQUE Skin Therapy BA065Y New Venture Planning Prepared by, GROUP A10 Joelle Lau Zhe-Yi Tng Qiu Fang Chan Supasasin Lee Jia En Hong Xiang De
- 2. 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
- 3. 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
- 5. Social - Favourable Consumer 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
- 6. Technology – Favourable Consumer 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
- 7. Environment - Unfavourable Product 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, 2016 7
- 9. Wholesale & Retail Retail Pharmaceutical Beauty & Personal Care Skincare 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
- 10. Key Players • Major industry key players : 10
- 11. 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
- 14. Research Methodology • Quantitative Survey • Personal Interview • Quota Sampling • Total Planned 400 respondents • Total Actual 438 respondents 14 Age group Planned Actual Eczema Prevention Eczema Prevention 24 years old and below 20 40 29 74 25 to 34 years old 60 50 56 54 35 to 44 years old 60 50 56 46 45 to 54 years old 40 40 38 38 55 years old and above 20 20 29 18 TOTAL 200 200 208 230
- 16. A total of 230 respondents DO NOT have issue with dry, itchy skin or eczema were interviewed. 16
- 17. Profile of Respondents Q17. Gender Q18. Age Group Q19. Marital Status Q20. Occupation Q21. Monthly Personal Income/ Allowance 53%47% Gender Male Female 17 41% 18% 17% 8% 5% 4% 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$5,999 S$6,000 to S$6,999 Above S$8,000 S$7,000 to S$7,999
- 18. Awareness & Usage of Brands No 26% Yes 74% 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
- 19. Awareness & Usage of Brands 75 27 22 21 11 10 2 43 0 10 20 30 40 50 60 70 80 Cetaphil Physiogel Eucerin QV California Baby Aveeno EZEQUE Others Q3. If yes, which of the following brands have you used? (You may tick more than one option) Johnson Baby, Vaseline and Rosken 19
- 20. Types of Product Used 7 13 19 26 41 50 73 0 10 20 30 40 50 60 70 80 Other Itch relief Sunblock/Sunscreen Repair cream Body wash Facial cleanser Moisturiser 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
- 21. Awareness of EZEQUE Skin Therapy Yes 4% No 96% Q5. Have you heard of EZEQUE Skin Therapy? 21
- 22. Awareness of EZEQUE Skin Therapy Family and friends 40% Social media 10% Newspaper / Magazines 30% Retail Stores (Unity Pharmacies / Takashimaya) 20% Q6. If yes, where have you seen or heard about EZEQUE? Base : EZEQUE users (10 respondents) 22
- 23. 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? Yes 53% No 47% Q7. Would you use EZEQUE if it can prevent dry, cracked, itchy and scaling skin? 23
- 24. 0 20 40 60 80 100 120 140 BRAND PRICE QUALITY AVAILABILITY EASY TO USE 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
- 25. 0 20 40 60 80 100 120 140 BRAND PRICE QUALITY AVAILABILITY EASY TO USE Factors Influencing Purchasing Behaviour 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.)
- 26. 0 20 40 60 80 100 120 140 BRAND PRICE QUALITY AVAILABILITY EASY TO USE 13 Factors Influencing Purchasing Behaviour 131 26Q9. 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.)
- 27. 0 20 40 60 80 100 120 140 BRAND PRICE QUALITY AVAILABILITY EASY TO USE 91 Factors Influencing Purchasing Behaviour 27Q9. 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.)
- 28. 0 20 40 60 80 100 120 140 BRAND PRICE QUALITY AVAILABILITY EASY TO USE 68 15 Factors Influencing Purchasing Behaviour 28Q9. 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.)
- 29. 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
- 30. 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 15 36 40 52 53 57 64 109 165 0 20 40 60 80 100 120 140 160 180 Radio Official website Newspaper Television In Retail Stores Online Search Social media Doctor/Dermatologist Word of Mouth • 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
- 31. 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 145 144 87 60 23 15 10 0 20 40 60 80 100 120 140 160 Guardian Watson Medical clinics Unity Online stores Official website Other • 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
- 32. 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 183 73 60 52 51 0 20 40 60 80 100 120 140 160 180 200 Family / Friends Promotions Advertisement Price Brand 32
- 33. 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$20 S$40 S$60 S$80 S$100 More than S$100 33
- 34. 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$30 S$40 S$50 More than S$50 34
- 35. Promotions that Attract Consumers Q16. What kind of promotion will most entice you when purchasing dry skin preventive products? (Tick only ONE option)71 66 48 38 7 0 10 20 30 40 50 60 70 80 Cash discounts Product/Sample giveaway One-for-One Bundle pricings Others 35
- 37. Demographics 37Source: (Singstat, 2015) Male and Female 15 to 30 years old Monthly Income < S$4,000 POTENTIAL TARGET MARKET = 279,600 people
- 38. Market Size 38 TARGET MARKET 279,600 people 53% MARKET VOLUME 148,188 people MARKET VOLUME 148,188 people PRICE OF EZEQUE S$48.80 ANNUAL MARKET POTENTIAL S$7,321,574.40
- 40. CURRENT POSITION – QUALITY & PRICE High Price Low Quality High Quality Low Price
- 41. RECOMMENDED POSITION – QUALITY & PRICE High Price Low Quality High Quality Low Price
- 42. CURRENT POSITION – VARIETY & TYPE OF RETAILING Store-based retailing Narrow Variety Broad Variety Online retailing
- 43. RECOMMENDED POSITION – VARIETY & TYPE OF RETAILING Store-based retailing Narrow Variety Broad Variety Online retailing
- 44. MARKETING OBJECTIVES To 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
- 45. 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 EV
- 47. RECOMMENDED – CONTAINER DESIGN DUAL – CHAMBER CONTAINER 47
- 48. Mist Cream Semi- transparent BENEFITS • Dual function – Easy to use • Convenience – On the go use RECOMMENDED – CONTAINER DESIGN 48
- 49. RECOMMENDED – OUTER PACKAGING BEFORE AFTER 49
- 51. 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
- 52. 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
- 54. Easily accessible & Reachable by target audience Future of distribution 54
- 55. Online marketplace - Qoo10 55 Product Offerings All rounded User base 900, 000 users Locations Japan, 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 coupons 2. Group buy 3. Bidding promotions – Placements
- 56. Online marketplace - lazada 56 Product Offerings All rounded Locations Malaysia, 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 Program 2. Seller Incentive Program 3. Lazada Promotion Tool (subjected to approval)
- 57. 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
- 59. 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
- 60. RECOMMENDATI ON STATUS IMPROVEMENTS CONTINUE - RECOMMENDED PROMOTIONAL TOOLS 60
- 61. RECOMMENDATI ON STATUS IMPROVEMENTS Email Marketing CONTINUE Giving out trial kits (first 100 subscribers) RECOMMENDED PROMOTIONAL TOOLS 61
- 62. RECOMMENDATI ON STATUS IMPROVEMENTS Word-of-Mouth & Testimonials CONTINUE Incentivise WOM [Offering discounts (code, vouchers etc.)] RECOMMENDED PROMOTIONAL TOOLS 62
- 63. RECOMMENDATI ON STATUS IMPROVEMENTS Search Engine Marketing CONTINUE Using Pay-Per- Click (PPC) Google AdWords RECOMMENDED PROMOTIONAL TOOLS 63
- 64. RECOMMENDATI ON STATUS IMPROVEMENTS CONTINUE Invest in Facebook Adverts RECOMMENDED PROMOTIONAL TOOLS 64
- 65. RECOMMENDATI ON STATUS IMPROVEMENTS INTRODUCE Create IG account & engage ‘Influencers’ RECOMMENDED PROMOTIONAL TOOLS 65
- 66. RECOMMENDATI ON STATUS IMPROVEMENTS Seasonal Discounts INTRODUCE Offer discounts (codes, vouchers, promo price) RECOMMENDED PROMOTIONAL TOOLS 66
- 67. RECOMMENDATI ON STATUS IMPROVEMENTS INTRODUCE Bid for listings RECOMMENDED PROMOTIONAL TOOLS 67
- 69. RECOMMENDATI ON STATUS IMPROVEMENTS INTRODUCE Give out trial kits, discounts & brochures RECOMMENDED PROMOTIONAL TOOLS 69
- 70. 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
- 72. 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. 73 CONCLUSION
Editor's Notes
- To start off, these are the profile of our respondents. 53% of them are male while the rest are females. For income level, about a quarter of them are earning less than S$4000 per month.
- Awareness and usage of brands. About 3 quarters of the respondents have used skincare products or moisturisers, showing that they are highly concerned about their own skin condition.
- And if yes, which of the following brands have they used? The top brand came up to be cetaphil, follow by physiogel, eucerin and Qv.
- Q4 what types of products are they using from the above mentioned brand in question 3. the top three products are moisturizer, facial cleanser and body wash. While itch relief is the one of the top three product for eczema interview, in the preventive interview it is not much of a concern to these respondents since they do not have dry skin or eczema.
- Moving on to q5, have they heard of ezeque, and 4% of them have mentioned yes and this 4% refers to 10 of our respondents.
- Out of these 10 respondents, 40% have heard from family and friends, 10% from social media, 30% from newspaper or magazines and 20% from retail stores.
- In q7, we have asked them if they would they used EZEQUE if it can prevent dry, cracked, itchy or scaling skin and more than half of our respondents said yes. While those that say no stated their reasons as to unfamiliar brand, does not feel that there is a need for them to use, waste of money and sensitive skin.
- Moreover, factors influencing purchasing behaviour. Respondents are to 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.)
- 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.)
- 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.)
- 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.)
- 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.)
- Type of ingredients influencing purchase of dry skin preventive product. From our survey, we have collected a total of 211 responses who have selected natural ingredients are their most preferred ingredient which would caused them to try out dry skin preventive product. Similar results to the eczema interview Mentioned that products are made from natural ingredients at the front of the packaging Others: Coconut oil and Scent-free
- In addition, in q11, we have asked them where do they usually obtained information about a dry skin preventive product. The top two ways are through word of mouth and doctor or dermatologist. With SEC Lifestyle promoting ezeque in newspaper, they may not be able to reach out to a larger customer base.
- Q12. where do they usually purchase their dry skin preventive product. The top three place are guardian, Watson and medical clinics. on the other hand ezeque is only available in unity out of all the options, thus we feel that Sec lifestyle may venture into guardian or Watson in future.
- Factors influencing trying of new dry skin preventive products. There were 5 options for them to choose from family or friends, promotions, advertisement, price and brand. The top most influencing factor is through family or friends.
- In q14, what is their maximum amount they are willing to spend on dry skin preventive products. 42% stated a max of $40 and 37% stated a max of $20.
- In addition, we have also asked them the maximum amount they are willing to spend on a 50ml mist and 50ml cream and more than half have stated maximum of $30. With Sec lifestyle selling ezeque at $48.80, this price may not be favourable to most of our resondents.
- Last but not least, the promotions that attract consumers. There were a total of four options, cash discounts, product giveaway, one for one, bundle pricings, the top most preferred promotion is cash discounts. With that, we hope our findings and market research are beneficial to your company. Thank you.
- This annual mkt potential is conservative coz one user may not only buy the roducts once a year
- Incentivize -
- Assumptions made when calculating the budget: SEC Lifestyle sells 10,000 bottles of EZEQUE every year. The forecasted growth in 2017 is 20%, so the total number of bottles of EZEQUE sold will be 10,000 x 120% = 12,000 bottles There are a total of 5 distribution channels (Takashimaya, Qoo10, Lazada, Hermo Singapore and SEC Online store) and all the channels sell equal number of EZEQUE in 2017. The number of EZEQUE sold through Qoo10 will be 12,000 ÷ 5 = 2,400 bottles Commission payable is 12% of the total transaction amount. No optional fee and discount fee applies.
- THANK THEMMMMMMMMM WE WANT TTO THANK FOR THE OPPO BASED ON OBJ AND SUBJ OF THE PROJECT THERE ARE POTEMTIAL FOR EZEQUE BUT THERE ARE A LOT MORE TO BE DONE FOR MKTG AND BRANDING IN THE FUTURE