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MMI 3033
DESIGN PROJECT 1
MEDIA INNOVATION
FACULTY OF CREATIVE MULTIMEDIA
SITUATION ANALYSIS
BEAUTY & COSMETIC INDUSTRY
ESMERIA ORGANICS
ILI FARHANAH BT NORIZAN 1081101502
DELAT YEAR 2011/2012
DATE OF SUBMISSION
29TH NOVEMBER 2011
TABLE OF CONTENT
CHAPTER 1: PROJECT OVERVIEW 4
1.1: Introduction 5 - 6
2.1: Problem Statement and Issues 6
3.1: Objectives and Aims 7
CHAPTER 2: PROJECT PROFILE 8
2.1: Product Name 9
2.2: Product Classification 9
2.3: Product Characteristics 9
2.4: Product Range 10 - 18
2.5: Distribution 18
2.6: Product Life Cycle 19
2.7: The Brand 19 - 20
2.8: Brand Image and Implication 20
2.9: Strength and Weakness 20 - 21
2.10: Advantages and Disadvantages 21
2.11: Unique Selling Proposition (USP) 21
2.12: Promotional History and Advertising Schedule 22
2.13: Positioning Statement 22
CHAPTER 3: THE COMPANY 23
3.1: Company Overview 24
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3.2: Business Description 24
3.3: Company History 24 - 25
3.4: Key People 25
3.5: Location and Subsidiaries 25
3.6: Brands, Major Products and Services 26
3.7: Corporate Vision 26
3.8: Corporate Mission 26
3.9: Company’s Current Promotional Strategy 26 - 27
3.10: Product Sales’ History 27
3.11: Current Marketing Objective 28
3.12: Media Expenditure 28
CHAPTER 4: CONSUMERS AND STAKEHOLDERS 29
4.1: Current Consumers’ Characteristics 30
4.2: Stakeholders’ Characteristics 31
CHAPTER 5: INDUSTRY AND MARKETPLACE 32
5.1: The Industry 33 - 35
5.2: The Marketplace 35
CHAPTER 6: COMPETITIVE SITUATION 36
6.1: Direct Competitors 37 - 39
6.2: Indirect Competitors 39
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CHAPTER 7: SWOT ANALYSIS 40
7.1: Strength 41
7.2: Weakness 41
7.3: Opportunity 41 - 42
7.4: Threats 42
CHAPTER 8: STRATEGIC TARGET AUDIENCE 43
8.1: Proposed Primary Target Audience 44
8.2: Proposed Secondary Target Audience 45
CHAPTER 9: RESEARCH DEVELOPMENT 46
9.1: Marketplace Research 47 - 49
9.2: Market Observation 49
9.3: Online Survey 50 - 54
9.4: Interview 55 - 56
CHAPTER 10: PRECEDENT STUDIES 57
10.1: Advertising Strategy 58 - 60
10.2: Precedent Studies 61 - 69
CHAPTER 11: REFERENCES 70 - 71
CHAPTER 12: APPENDICES 72 - 80
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CHAPTER 1 – PROJECT OVERVIEW
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CHAPTER 1: PROJECT OVERVIEW
1.1 Introduction
Esmeria Organics, the first Malaysian certified organic skincare brand was launched on 19 January 2011. Also the first in South-East Asia, Esmeria Organics has been certified by Ecocert, an internationally recognized organic certification that guarantees formulation and manufacturing of the products are respected to the environment as well as using 100% total organic ingredients. Strict regulation and review on the raw materials indicates the high grade ingredients used in the products.
Esmeria Organics aims to fill the void of a genuine certified organic skincare line for all, through its wallet-friendly pricing. It preferred to keep the pricing competitive and affordable, hence the smaller packaging with lower prices. Bulky packaging is opted out as to be friendlier towards the environment. To fill the standards as a certified organic brand, even the packaging has to be eco-friendly and must be recyclable. As for the ingredients, finest plants are imported from the United States and Australia. Esmeria Organics’ key actives ingredients are some of the most advanced bio actives available in the market and have been proven to solve skin problems, through years of research.
For avid organic products users, Esmeria Organics is a remarkable news for them as there is limited choice of organic skin care in Malaysia market. However, much to our dismay, majority of skin care users are having wrong perception on genuine organic product qualities. Many are fooled by the marketing terms like “natural”, “herbal”, or “organic”, at face value. Consumers are not practiced reading the fine prints on the product’s label. As much as we care
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on what we ingest, we should apply the same concern toward the products smeared onto our skin, which is one of the main routes for toxic chemicals to enter our system and cause many health problems. In faith that the first certified organic brand in Malaysia could become the foundation towards healthier and safer beauty and lifestyle.
1.2 Problem Statement and Issues
1.2.1 Problem Statement
Esmeria Organics has only recently entered the Malaysian market this early of the year. However, the brand is lacking of big advertising promotion and creative advertising strategies promoting the brand and its products that resulted to low brand awareness level among generic consumers.
1.2.2 Issues
Below are the issues identified:
1. Not reading and understanding product’s ingredients – Skin care users are mostly ignorant when it comes to reading and knowing the ingredients. They are not thoroughly educate on most ingredients used in one product, especially harmful ones.
2. All organic skin cares are assumed to be expensive – Users kept to the idea that all organic skin care brands are expensive. As much true it is, due to the fine ingredients and procedure in creating the products, there are still many cheap alternatives of organic skin care available in Malaysia, but lacking the exposure.
3. Unaware of source to find organic product – Organic brand is slowly climbing its stairs in gaining consumers attention. A few organic brands have entered the aisle in major pharmacies but many does not realizing its presence.
4. Misunderstood by false marketing terms – Terms such as “chemical-free” and “natural” are just a misused of marketing terms, which cause misunderstanding and confusion between genuine and false organic products.
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1.3 Objectives and Aims
1.3.1 Objectives
Below are the objectives of the project: To garner and process information and date about the brand and its product. To identify the product’s strengths and weaknesses To calculate brand awareness and perception through surveys on the target
audience To compile all these materials and create advertising strategies and how to make
improvement.
1.3.2 Aims
This project aims to develop all the gathered vital information in order to make more creative and effective advertising strategy targeting to specific audience range. Finally, at a future point in time, this project will help to enhance the brand image, raise brand awareness, increase product sales and thus leading people to safer and healthier beauty and lifestyle by using organic skin care products.
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CHAPTER 2 – PROJECT PROFILE
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CHAPTER 2: PROJECT PROFILE
2.1 Product Name
Esmeria Organics
2.2 Product Classification
Esmeria Organics is a certified organic skin care focuses on using natural bio actives in their product targeted on health-conscious consumers and is a non-durable product.
2.3 Product Characteristics
2.3.1 Type: Organic skin care
2.3.2 Packaging: Environmental-friendly packaging and container – Tube and bottle packaged in boxes
2.3.3 Skin Care Range: Glasswort – For dry and mature skinPrickly Pear – For normal to combination skinAlphine Willowherb – For oily & acne prone skin
2.3.4 Pricing Range: RM29.90 – RM49.90
2.3.5 Unit Per Sale: Per tube / Per bottle
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2.4 Product Range
2.4.1 Esmeria Organics’ skin care range
Esmeria facial skin care features some of the most effective natural Bio Actives available. The product ranges are designed specifically to help slowing down the natural aging process and achieve natural even skin tone. Being free from unfriendly and harmful ingredients, they will not aggravate or stress your skin. Currently, the skin care ranges available to consumers are Glasswort – For dry and mature skin, Prickly Pear – For normal to combination skin, and Alphine Willowherb – For oily & acne prone skin. Each series has its own beneficial points targeted to certain audience with particular type of skin.
Figure 2.1 Different type of skin care ranges of Esmeria Organics
a) Glasswort – For Dry and Mature Skin
Figure 2.2 Glasswort range
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Glasswort has the favorable effect of reducing water loss and provides visible and prolonged moisturizing benefits to dry and/or sensitive skin. Dry to mature skin needs intense hydration and care to restore youth and slow down the aging process.
Mediterranean Glasswort’s triple action of providing, maintaining and boosting the skin’s natural moisturizing strength prevent aging from speeding up. In addition, Glasswot range includes Peruvian Inca Inchi which is famous with overloaded Omega-3, Omega-6, Omega-9, Vitamins A and with the characteristic of being liposoluble, has many cosmeceutical properties such as prevent damage by ultraviolet rays that can intrigue skin cancer, revitalizes skin, and reducing wrinkles which promotes skin health.
Glasswort Delicate Cleansing Lotion
Unit of sale: 75 ml
Price: RM 29.90
Benefits: Cleans and nourish dry and
mature skin. Remove dirt with gentle plant-
derived cleansing agents. Offer cellular support, EFA's
and a dose of hydration. Improves the skin's moisture
levels and calms inflammation.
Glasswort Comforting Toner
Unit of Sale: 60 ml
Price: RM 32.90
Benefits: Tone and soothe dry and
mature skin. Provides soothing hydration. Prevent water loss, offer deep
hydration and refine pore size. Calms and moisturizes.
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Glasswort Moisturising Cream
Unit of Sale: 30 ml
Price: RM 46.90
Benefits: Strengthen and support dry
and mature skin from inside and out.
Drives cellular production and transport of Natural Moisturising Factors.
Promotes dermal cohesion which results in reduced water loss and smoother, suppler skin.
Fights inflammation and treats dry skin and protects against UV damage.
Glasswort Replenishing Moisturising Cream
Unit of Sale: 30 ml
Price: RM 49.90
Benefits: Replenish and protect dry and
mature skin while you rest. Maximise your skin's night
time repair. Delivering EFA's and
antioxidants while revitalising and repairing from inside and out.
Amplifies natural night time skin repair or offers extra protection for harsher conditions.
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b) Prickly Pear – For Normal to Combination Skin
Figure 2.3 Prickly Pear range
Prickly pear has a very high rate Tocopherol (Vitamin E), hence becoming an extreme anti-natural antioxidant. Regular use results to elastic, smooth and firm, with natural shine skin. Normal to Combination Skin needs a bit of support and sebum regulation to maintain its health and vigour.
Mexican Prickly Pear provides deep hydration, protects from UV damage and soothes when the going gets rough. Alpine Willowherb is included to keep sebum secretion under control in the T-Zone and helps calms irritated skin.
Prickly Pear Balancing Cleansing Gel
Unit of Sale: 75 ml
Price: RM 29.90
Benefits: Cleans and balance normal to
combination skin. Mild sugar and amino acid
derived cleansing agents. remove dirt and pollution
Regulate sebum secretion, soothe and protect against environmental stress factors.
Shields and nourishes while reducing shine.
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Prickly Pear Facial Scrub
Unit of Sale: 50 ml
Price: RM 29.90
Benefits: Remove dead skin and
improve blood circulation. Provide powerful soothing and
calming properties while regulating sebum secretion.
Exfoliate gently to reveal fresh and revitalised skin.
Prickly Pear Balancing Toner
Unit of Sale: 60 ml
Price: RM 32.90
Benefits: Tone and balance normal to
combination skin. Short and long term soothing
effect, skin firming properties and moisturisation.
Inhibits sebum production, acts as a free radical shield and protects the skin from environmental stress.
Prickly Pear Moisturiser
Unit of Sale: 30 ml
Price: RM 46.90
Benefits: Nourish and protect normal to
combination skin without adding shine.
Long lasting hydration and protection from environmental pollution while regulating sebum secretion.
Supports healthy skin and defend against UV damage.
Strengthen the skin's in-built immune system.
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Prickly Pear Replenishing Moisturiser
Unit of Sale: 30 ml
Price: RM 49.90
Benefits: Replenish and protect dry and
mature skin while you rest. Maximise your skin's night
time repair. Delivering EFA's and
antioxidants while revitalising and repairing from inside and out.
c) Alphine Willowherb – For Oily & Acne Prone Skin
Figure 2.4 Alphine Willowherb
Alphine Willowherb is a botanical source of keratolytic salicylic acid in a natural form, and an antimicrobial; which proven to slow down the development of the enzyme that produces sebum. It has the impact of reducing the size and appearance of pores, reduce skin inflammation and reduce the production of 5a-reductase.
Oily to acne prone skin requires regulation and tender care without smothering the skin. With Alpine Willowherb, sebum secretions are kept normal while soothing sore and inflamed skin. In addition, Totarol extract fights acne causing bacteria, preventing uncomfortable breakouts.
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Alpine Willowherb Purifying Cleansing Gel
Unit of Sale: 75 ml
Price: RM 32.90
Benefits: Cleans and purify oily and acne
prone skin. Gentle amino acid and sugar
derived cleansing agents remove sebum from the skin without stripping away natural moisture.
Reduces oiliness calms sore and irritated skin while offers powerful anti-blemish action.
Alpine Willowherb Purifying Moisturising Solution
Unit of Sale: 30 ml
Price: RM 49.90
Benefits: Soothe and purify oily and
acne prone skin. Offers soothing, long lasting
moisturisation, a reduction in oiliness and helps prevent acne.
Alpine Willowherb Purifying Toner
Unit of Sale: 60 ml
Price: RM 32.90
Benefits: Tone and purify oily skin. Provides deep, pure hydration
while normalises sebum production and calms sore and irritated skin.
Extract offers powerful anti-blemish action.
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2.4.2 Esmeria Organics’ other products
a) Eye Care Range
Ultimate 5-Effect Eye GelFor All Skin Types
Ultimate 5-Repair Eye GelFor Mature Skin
b) Body Care Range
Prickly Pear Protective Shower Gel
For Normal Skin
Prickly Pear Protective Body Lotion
For Normal Skin
Prickly Pear SOS Rescue Cream
For Scrapes, Bites, Pimples & Other Ailments
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c) Hair Care Range
Butterfly Bush & Aloe Vera Frequent Use Shampoo
For Normal Hair
Butterfly Bush & Aloe Vera Frequent Use Conditioner
For Normal Hair
d) Gift & Sets
Glasswort Facial Travel SetFor Dry & Mature Skin
Prickly Pear Facial Travel SetFor Normal To Combination Skin
Alpine Willowherb Travel Set
For Oily & Acne Prone Skin
2.5 Distribution
Esmeria Organics products are distributed in both mode of distribution; direct and indirect.
Distribution in direct method will be through online ordering from the main website itself. On the other hand, indirect distribution covers through reseller, agent, retail outlet, pharmacy such as Watsons, and supermarket such as Jusco.
2.6 Product Life Cycle
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Period Introduction Growth Maturity Decline
Decline Period
2.7 The Brand
Figure 2.5 Esmeria Organics
Esmeria Organics is an organic skin care brand originating from our very own home, Malaysia. Under the company I-Green Sdn Bhd, it brings the title as the first in Malaysia and South-East Asia company to be certified by Ecocert, a French-based international organic certification body known for its stringent standards.
Established on 19 january 2011, Esmeria Organics aims to fill the void of a genuine certified organic skincare line for all, through its wallet-friendly pricing. It gives more access to Malaysians to safe and more affordable personal care products that are not only beneficial to the skin, but also eco—friendly, in hopes of sharing the goodness of organic skin care with today’s health-conscious Malaysians.
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To be certified as an organic brand, 95 percent of the ingredients used must be of natural origin. Thus, only the finest plants are used to make the skin care line by importing from the United States and Australia. As a new brand, it touches many hearts of organic skin care lovers and even won a few awards. However, to majority of skin care user either organic or non-organic, Esmeria Organics is unfamiliar to them with the factors contributing to it as being a new brand and lacking on big promotion of introductory.
2.8 Brand Image and Implication
The desired brand image is for the consumers to be able to experience using organic skin care with affordable price. However, as a new product, Esmeria Organics could not push up the statement as there is very little of brand awareness for its products. The brand is not even one year old from its brand launching which is on this year January, making it still under the introduction period. Esmeria Organics brand image of selling organic skin care product needs to be implicated intensely in the mind of the consumers as their purchasing decision are not just affected by the product, but also by the images and identificatipn associated with the product itself.
2.9 Strength and Weakness
Strengths:
The first brand in Malaysia and Soust-East Asia to be certified by Ecocert 95% of the formulation is natural, 95% of the plant ingredients are organic and
10% of total formulation is organic. Uses advanced bio actives for real results Safe enough if accidentally consume the cream or lotion Attractive packaging with eco-friendly image Packaged in recyclable boxes and containers Affordable Formulated a few range that specifically addresses to particular skin types Accessible through selected organic stores and pharmacies nation wide Provide e-commerce for online ordering Smell nice with no artificial fragrance
Weaknesses:
The product is still new Unavailable at major hypermarkets and supermarkets
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Lack of strong media promotion and advertising activities Market strategies are not enough Most skin care users are still in blur on the correct definition of organic skin care
2.10 Advantages and Disadvantages
Advantages:
Bringing up Malaysian name Portable due to the type of packaging and size Avoid usage of materials that are harmful to the environment Nor harmful chemicals that can lead to various skin irritation and cancer Targeted to broader audiences with its variety of skin care range Accessible 24/7 through online ordering Main ingredients that have been proven to solve skin problems, through years of
research
Disadvantages:
Consumers may not realise its existence due to the brand being new in the market
Less brand exposure due to unavailability in major hypermarkets and supermarkets
Non-organic skin care user may have misconception towards organic brand by reckoning any brand with the term natural or organic are 100% organic, which factually may not be true, as the brand possibly having only 10% of the ingredients as organic.
2.11 Unique Selling Proposition (USP)
Esmeria Organics skin care is the first Ecocert certified company in South-East Asia which caters for all skin types and formulated with organic ingredients that are earth-friendly and wallet-friendly.
2.12 Promotional History and Advertising Schedule
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Esmeria Organics’ promotional activities focus on giving consumers the best deals for their organic products, which mostly conducted through the web and Facebook page.
2011 (19 January) Press launch at Bayan Indah 2011 (30 March to 14 April) Win Glasswort travel set by posting on Esmeria
Organics’ Facebook wall why you want to try our Glasswort line and get friends to like the comment
2011 (20 April to 24 April) Earth Day Carnival at Sunway Giza, Kota Damansara 2011 (20 April to 24 April)RM20 for any travel pack price promotion at Earth Day
Carnival 2011 (19 April to 22 April) Earth Day Contest to win Esmeria Organics travel set by
posting earth day eco tip on Facebook Page’s wall 2011 (13 May to 14 May) I-Green Warehouse Sale at Bandar Sri Damansara 2011 (21 July) Free sample request through website 2011 (19 August to 31 August) 20% discount offer on online purchasing through
Esmeria Organics website 2011 (9 September to 30 September) Purchase Prickly Pear Moisturiser or Alpine
Willowherb Cleansing Gel and get Hair Shampoo for free through online ordering and selected outlets
2011 (20 October to 24 Ocotober) 'Trade in your chemicals' at Watsons Sunway Pyramid
2.13 Positioning Statement
Esmeria Organics skin care provide healthy alternative of skin care by using purely organic ingredients and formulations that are eco-friendly and affordable, targeting health-conscious individuals with any skin types
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CHAPTER 3 – THE COMPANY
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CHAPTER 3: THE COMPANY
3.1 Company Overview
Esmeria Organics is owned by I-Green (M) Sdn Bhd, a company that manufactures organic skin care. It was founded on the year 2000 by the two siblings, Soo Siew Peng and Soo Kian Kheng. Focusing on delivering healthy and environmental-friendly product, a few product lines were introduced including i-green (discontinued), Buds for Baby and Charita which then renamed to Esmeria and latest to Esmeria Organics. Their company is approved and certified by Ecocert to be 100% organic in all aspect including manufacturing and packaging. The dominance of healthy and safe personal care products in the market has provided I-Green the opportunity to rise and spread the goodness of using organic brand as the better alternative of personal care.
3.2 Business Description
I-Green (M) Sdn Bhd’s main business consists of distributive trade, wholesale and retail in the cosmetic and toiletried industry, with an intensive focus on its organic personal care products. It was motivated by the fact that Malaysia has no brand qualified to receive the certification by Ecocert and the lacking exposure of organic skin care products among Malaysian consumers. The company import only the finest plants from the United States and Australia as their ingredients to ensure meeting the standards by Ecocert and quality assurance.
To keep the standard as an organic brand, they manufacture their own products at their factory in Bandar Sri Damansara, which is also Eco-certified. On two shifts a day, the factory can produce about 200kg of shower gel and 50kg of lotion. They are planning to double their capacity and gradually introduce at least two new product lines this year.
3.3 Company History
I-Green (M) Sdn Bhd, a company that manufactures organic skin care was started on the year 2000 when Soo Siew Peng probed his younger brother, Soo Kian Kheng, a chemical enginerr to formulate a skin care for her sensitive skin that was prone to itchiness, dryness and peeling. Their first product was a body wash, which got positive response from family and friends around 2002. They registered all their formulas and get them approved by the Ministry of Health. Their first range was called i-Green that includes bath gel, lotions, hand wash and even dishwashing detergent. They were able to convince a few natural and organic stores to start selling their products, about 20 to 30 of them.
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On year 2004, they introduced new range for baby about 10 products called Buds for Baby and in 2008, they reformulated the range to meet Ecocert standards. Today, they have over 40 products under that line and it is the world’s largest range of Eco-Certified baby care products. Around the same year in 2004, Charita was born, with the aim to be the leader in the natural adult skin care market. It was then renamed to Esmeria in 2005 when they started exporting to other markets. In 2007, they decided to enter the world’s largest organic fair, BioFach, held in Germany every year. The process of qualifying to participate was so stringent and they kept getting questioned if they were certified or not. After evaluating all available organic certifications in the world, they decided to go with international French organic certification body Eco-Cert, one of the oldest and most prestigious certifications. It also meets all the safety tests for the UK and the EU.
On the first year, they were able to reformulate and certify 18 products. All in all, they succeeded to complete the entire range of products in 2010 and the name was changed to Esmeria Organics. On 19 January 2011, Esmeria Organics is out for the world to experience.
3.4 Key People
Name Job Title BoardSoo Siew Peng Founder / Director Executive BoardSoo Kian Kheng Founder / R&D Director Executive BoardJonathan Horsley Export & Marketing Director Management Board
3.5 Location and Subsidiaries
Headquarters:
Address: Lot 5 Jalan Lada Hitam 16/12, 40200 Shah Alam Selangor.
Tel: 03 5518 9166 Website: http://www.esmeria.com/
Retailers location:
(Consist of pharmacies and organic stores)Kuala Lumpur – 23 stores Perak – 2 stores Sabah – 1 storeSelangor – 34 stores Kedah – 3 stores Sarawak – 1 storePenang – 14 stores Negeri Sembilan – 3 storesJohor – 9 stores Melaka – 5 stores
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3.6 Brands, Major Products and Services
I-Green (M) Sdn Bhd is a Malaysia company focusing on the organic personal care retail business and as the first international organic certified natural skin care company in Malaysia. Below are the company’s brand and line of production:
BrandsBuds for Baby, Esmeria Organics
ProductsOrganic personal care products
Services(None)
3.7 Corporate Vision
To become the major player in the skin care market by selling organic personal care products, beside enhancing its corporate values with the aim to encourage a environmental-friendly and healthy beauty lifestyle among Malaysian individuals.
3.8 Corporate Mission Create healhy and eco-friendly personal care product Increase health awareness and the harm of chemical-based products by the
introduction of a safer alternative of skin care Strengthen the brand image as the first organic certified brand in Malaysia To achieve supreme growth in terms of volume and profit to build a stable of global
brands that leverage on the strength on their R&D
3.9 Company’s Current Promotional Strategy
2011 (19 January) Press launch at Bayan Indah 2011 (30 March to 14 April) Win Glasswort travel set by posting on Esmeria
Organics’ Facebook wall why you want to try our Glasswort line and get friends to like the comment
2011 (20 April to 24 April) Earth Day Carnival at Sunway Giza, Kota Damansara
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2011 (20 April to 24 April)RM20 for any travel pack price promotion at Earth Day Carnival
2011 (19 April to 22 April) Earth Day Contest to win Esmeria Organics travel set by posting earth day eco tip on Facebook Page’s wall
2011 (13 May to 14 May) I-Green Warehouse Sale at Bandar Sri Damansara 2011 (21 July) Free sample request through website 2011 (19 August to 31 August) 20% discount offer on online purchasing through
Esmeria Organics website 2011 (9 September to 30 September) Purchase Prickly Pear Moisturiser or Alpine
Willowherb Cleansing Gel and get Hair Shampoo for free through online ordering and selected outlets
2011 (20 October to 24 Ocotober) 'Trade in your chemicals' at Watsons Sunway Pyramid
3.10 Product Sales’ History
Graph 3.1 Overview of Sales Growth (no figure disclosed)
3.11 Current Marketing Objective
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I-Green (M) Sdn Bhd’s marketing objective is to promote usage of organic personal care as the better alternative
Long term
To be the leading brand in selling healthier and safer skin care products To further penetrate the organic personal care market both in local and global terms To transform Malaysian into more environmental-friendly individuals by
incorporating the company’s values into their lfestyles
Short term
To be recognized as the first Malaysian brand certified by Ecocert To strengthen and enhance brand identity as well as increase brand awareness to
achieve brand loyalty among consumers To exceed sales expectation and sustain a greater growth yearly To utilize every possible medium of mass media in advertising activities to reach a
wide range of audience that could extend beyond the target audience
3.12 Media Expenditure
(Figure is disclosed by the company)
As a company with new brand in the skin care market, brand awareness level is very low due to minimal exposure of the brand and lack of major promotional advertising. At the moment, media expenditure is mostly focused on small-scale advertising involving print media such as magazine and newspaper, as well as online promotion through website, facebook page and blog reviews. The audience base is not strong enough to brings Esmeria Organics to another level of marketing, as it involves a large amount of money. However, they are slowly gaining the brand awareness by distributing their products to more retailers for exposure in the area.
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CHAPTER 4 – CONSUMERS AND
STAKEHOLDERS
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CHAPTER 4: CONSUMERS AND STAKEHOLDERS
3.13 Current Consumers’ Characteristics
4.1.1. Demographics
Age : 18 – 60 years old Gender : Female Education : Post-secondary to tertiary Occupation : Students to working adults Allowance Range: RM500 – RM800 Income Range : RM1500 – RM5000 Race & Ethnicity : All race Geographical Location : Urban and sub-urban
4.1.2. Psychographics
Perception : A genuine organic skin care uses purely organic ingredients Learning : -Print media (magazine, newpaper)
-Digital media (blog, Facebook page, website)-Broadcast media (press launch)-Others (promoters, friends and family)
Motivation & Needs : -Looking for affordable organic skin care-Looking for alternative skin care with organic origin that is free from harmful ingredients
Attitude: -Willing to try products from lesser known brands-Conscious about the use of chemical and artificial ingredients in skin care products-Concern with beauty without putting health issue aside
Personality: Optimistic, easy-going, pleasant Lifestyle: Healthy, modern, smart-spending
3.14 Stakeholders’ Characteristics
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4.2.1. Primary
Board of directorsAs the representatives of the stockholders to handle corporate management related policies and to make major decisions on company issues, the weight of responsibility are high as they are responsible for the actions of the company.
ShareholdersA strong contributor to the company as they invest money in return of a share in profit.
EmployeesContributes man-power diligently by carrying out their respective roles in the company as well as meeting performance standards set up by the company.
SuppliersEsmeria Organics only uses genuine organic plants in their formulation. Specific suppliers are important in ensuring product continuity
ConsumersVery important contributors as they are the reason to keep the company alive by purchasing their products and staying loyal to the brand. Feedback or suggestion from them concerning the products can help to improve the quality.
4.2.2. Secondary
DistributorsEsmeria Organics does not employ external distributors, thus the distributions of the products are done solely by the company’s employees.
MediaThe media is important in boosting brand awareness and product publicity.
BanksCompany source of funding and loans when business is growing as well as to assist in financial matters.
CompetitorsProvide healthy competitions for the brand to improve in every aspect. Without them, company has no direction to compare its brands for future enhancement
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CHAPTER 5 – INDUSTRY AND
MARKETPLACE
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CHAPTER 5: INDUSTRY AND MARKETPLACE
3.15 The Industry
5.1.1 Definition of the Industry
Cosmetics and Toiletries (C&T) Industry is one of the biggest sectors in world market concerning the manufacturing of consumer products used for beautification and personal hygiene. This industry covers a wide aspect of retail businesses in the world as a large share of market consists of different market segments including fragrances, hair care, makeup, nail care, oral care, skin care and other toiletries. It covers products such as body talc, body scrub, tooth paste, power, bathing gel, bathing salts, moisturizer, skin creams, face wash, hair oil, hair shampoo, hair conditioner, soap and other products classified under this industry.
5.1.2 Shape of the Industry
The culture of focusing on personal wellness and beauty care that goes deeper than merely cosmetics application has emerged globally, with the developments in science and technology on pharmaceutical.
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Cosmetic & Toiletries
Toiletries
Skincare
Natural & Organic Skincare
Esmeria Organics
Buoyed by strong economic growth in 2003, the Malaysian cosmetics and toiletries market recorded sales of approximately US$800 million. Sales were sustained by increased urbanization, a rise in the number of women working, and aggressive marketing and promotional activities of the retailers. The numerous new product launches also signified that the market still has room for growth. Imported cosmetics and toiletries are well received and are perceived to be of high quality. In 2005, cosmetics and toiletries products in Malaysia grew by 5% in current value terms to reach RM3 billion. Although the Malaysian economy experienced a slowdown in 2008 and 2009, consumer spending remained strong as employment rates posted healthy growth and consumer sentiment remained positive. Within cosmetics and toiletries, beauty related products such as men’s grooming, skin care and color cosmetics piloted the growth during 2005. There are more Malaysians who are concerned about their physical appearance and many are willing to pay a high price to attain their desired look.
An increase in purchasing power resulted in more women seeking higher quality products and branded cosmetics. Competition is stiff in the local market, especially among the companies from the U.S. and France. Advertising and promotion play an important role in cosmetic and toiletries products. The global rankings of major cosmetics and toiletries manufacturers have not changed since 2006. Procter & Gamble, L’Oréal and Unilever occupy the top three places globally, accounting for 30% of the market. Unilever demonstrated the strongest growth, 7.7% in 2007, while Procter & Gamble and L’Oréal increased their sales by roughly 5.5% each. Of the top 10 global players Beiersdorf showed the healthiest growth, benefiting from its strong position in Eastern Europe and acquisition of C-Bons in China.
5.1.3 Development of the Industry
The global cosmetics and toiletries Industry (C&T) had a strong growth in 2007 by reaching a value of $290.9 billion. Based on the research done by Euromonitor International, there is a grow of 6% in the market, which represents only a slight slowdown on the 2006 figure, $274.7 billion. From this figure, more than $ 140 billion is represented by the cosmetics and personal care sectors, which are outpacing most others. Among all the market segments under C&T industry, skin care is the leading segment with estimation of more than $31 billion during this same time period. The positive results of C&T industry will encourage manufacturers and distributors to boost their sales.
The local C&T industry is booming with an approximate of RM3 billion or about US$800 million, with a growth rate of 13% annually. More than 60,000 types of cosmetic products are estimated to be in the local market. Imported products from Thailand, the United States, France, Singapore and Japan dominate the market in Malaysia. Malaysians spent about US$600
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million on cosmetics and toiletries products, appliances and equipment in 2008. This demand was mainly met by imports. Skin-care products remain the main driver of growth for the cosmetics market. Malaysia imported US$225 million of skin and beauty products in 2008. This is a 35% increase from the previous year. With the current global recessionary economic climate, growth for 2009 is expected to be more cautionary in nature. A shift from high-end cosmetics and toiletries to the mid to mass market brands are anticipated. Even so, the demand growth for cosmetics and toiletries products and services, as well as devices and equipment is expected to be positive in the next few years.
3.16 The Marketplace
5.2.1 Current Condition of the Marketplace
The market of Esmeria Organics is currently in a mild competition among other organic skin care due to minimal import of organic brands in Malaysia. However, Esmeria Organics is in an intensive competition as there are a lot of existing products in the market to be fought by a new brand. At the moment, Esmeria Organics targets in recruiting base audience and slowly gaining more sales share in the market.
5.2.2 Changes in Marketplace
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 new brand.
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CHAPTER 6 – COMPETITIVE SITUATION
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CHAPTER 6: COMPETITIVE SITUATION
3.17 Direct Competitors
6.1.1 Sukin
Figure 6.1 Sukin
Sukin is an environmentally conscious, natural personal care company from Australia. Over 50 products offered are made using the best nature ingredients. With the aim to offer luxurious, natural products to budget conscious consumers, they are given the opportunity to purchase high quality, natural skin, hair and body care with affordable price yet effective. Sukin is dedicated to offer the world natural personal care, free from harsh chemicals that could be found in many products on the current market.
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6.1.2 Garnier
Figure 6.2 Garnier
Garnier is a mass market cosmetics brand of L'Oréal that produces hair care and skin care products. Much like other brands from L'Oréal, it is sold in several markets around the world. Garnier believe that good health is the major concern of the 21s century and that maintaining a healthy body Is the key to enjoying a long and beautiful life. They believe that the aim of beauty is happiness and feeling at ease with others.
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6.1.3 Hada Labo
Figure 6.2 Hada Labo
Hada Labo stands for the lifestyle philosophy of “PERFECT x SIMPLE” a skincare range that brings beauty back to the basics – perfect, simple and confident. To fulfill the commitment of healthy and perfect skin, Hada Labo emphasizes simplicity in its skin care process, removing all the unnecessary additives, colorant, fragrance and mineral oil that will burden the skin. Only the finest, purest and highly effective ingredients that are beneficial to the skin are retained to ensure maximum effectiveness.
3.18 Indirect Competitors
Soy Collagen from NURBEAUTYLINE Silkygirl Cosmetic Kinohimitsu Collagen Drink
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CHAPTER 7 – SWOT ANALYSIS
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CHAPTER 7: SWOT ANALYSIS
3.19 Strength
The first brand in Malaysia and Soust-East Asia to be certified by Ecocert 95% of the formulation is natural, 95% of the plant ingredients are organic and
10% of total formulation is organic. Uses advanced bio actives for real results Safe enough if accidentally consume the cream or lotion Attractive packaging with eco-friendly image Packaged in recyclable boxes and containers Affordable Formulated a few range that specifically addresses to particular skin types Accessible through selected organic stores and pharmacies nation wide Provide e-commerce for online ordering Smell nice with no artificial fragrance No product testing on animals Pet friendly offices
3.20 Weakness
The product is still new Unavailable at major hypermarkets and supermarkets Lack of strong media promotion and advertising activities Market strategies are not enough Most skin care users are still in blur on the correct definition of organic skin care
3.21 Opportunity
Today’s young adults are exposed to eco-friendly lifestyle, and more health conscious
Consumers are now turning to organic and natural personal care products to avoid harsh and harmful ingredients
Natural cosmetic & toiletries form another fast-growing category in the cosmetic & toiletries industry
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US market for natural and organic cosmetic is experiencing significant growth, which reached to US$7.9 billion in the natural personal care market on 2009
Organic products are getting into mainstream as retailer allocate more shelf space for organic and natural cosmetics products
As the first certified organic brand in Malaysia, it could generate interest among companies and association for collaboration or partnership
3.22 Threats
The average market demand for organic skin care in Malaysia is still relatively new and growing, causing slow brand exposure
Malaysian government imports a large number of personal care products from other countries resulting to higher competitors in the skin care market
Consumers general assumption that organic brands are expensive and made in Malaysia brand are low in standards
The need to fight against foreign organic brand that has greater brand exposure and demand
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CHAPTER 8 – STRATEGIC TARGET
AUDIENCE
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CHAPTER 8: STRATEGIC TARGET AUDIENCE
3.23 Proposed Primary Target Audience
4.1.3. Demographics
Age : 18 – 24 years old Gender : Female Education : College and university Occupation : Students Allowance Range: RM400 – RM800 Race & Ethnicity : All race Geographical Location : Urban and sub-urban
4.1.4. Psychographics
Perception : A healthy alternative skin care for those who are familiarizing with organic brand
Learning : -Print media (magazine)-Digital media (blog, Facebook page, website)-Others (promoters, friends and family)
Motivation & Needs : -Looking for new skin care range that proven effective-Looking for alternative skin care with organic origin that is free from harmful ingredients - Looking for affordable organic skin care
Attitude: -Willing to try products from lesser known brands-Conscious about the use of chemical ad artificial ingredients in skin care products-Positive towards having healthy beauty
Personality: Optimistic, easy-going, curious Lifestyle: Healthy, modern, young
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3.24 Proposed Secondary Target Audience
4.1.5. Demographics
Age : 30 – 50 years old Gender : Female Education : Post-graduate Occupation : Working adults Income Range : RM1500 – RM5000 Race & Ethnicity : All race Geographical Location : Urban and sub-urban
4.1.6. Psychographics
Perception : A new, cheaper alternative among other existing organic brands Learning : -Print media (magazine)
-Digital media (Facebook page, website)-Others (events, promoters, friends and family)
Motivation & Needs : -Trying new organic skin care brand-Making broader choice of organic skin care brands-Live green
Attitude: -A passionate user of organic products-Conscious about the use of chemical ad artificial ingredients in skin care products-Concern with beauty without putting health issue aside
Personality: Optimistic, mature, open to changes Lifestyle: Healthy, modern, smart-spending, environmental-friendly
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CHAPTER 9 – RESEARCH DEVELOPMENT
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CHAPTER 9: RESEARCH DEVELOPMENT
3.25 Marketplace Research
9.1.1 Retailers visit
In order to gather more information regarding the brand and products, I visited one pharmacy that displays Esmeria Organics’ point-of-purchase (POP) display. Through physical observation, I am able to acquire product information on the product displayed, point-of-purchase concept and do market observation.
5 Figure 9.1 Watsons Pavilion KL
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9.1.2 Point-of-Purchase Concept
Figure 9.3 Esmeria Organic Point-of-Purchase
a. Placement
Esmeria Organics product point-of-purchase (POP) is placed at selected retailers with high walk-in consumers. The POP is placed on the side of shelf aisle to attract consumers’ attention towards the product.
b. Colour
Implementing an eco-friendly image, the POP design uses cardboard colour palette with white as its contrast for printed illustration and text. Combination of three colour of different tone to represent each skin care range creates a vibrant and fun expression. The colour that
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represents the Glasswort range is Fuego Green, Prickly Pear is Ruby Red and Alpine Willowherb is Hopbush Violet.
c. Material
To stand as an environmental-friendly organic brand, Esmeria Organic uses cardboard material to create the POP so it can be recycled in the future.
3.26 Market Observation
Over the weekend, Watson Pavilion KL has continuous walk-in customers, but there is only a small number of individuals and group of family and friend who stop by at the POP display and purchased the products. Below are the findings of my observation at the pharmacy:
Place : Watson Pavilion KLTime : From 1:00 PM to 4:00 PMDate : 12 November 2011
Time 1:00 PM – 2:00 PM 2:00 PM – 3:00 PM 3:00 PM – 4:00 PMCheck out product 9 19 15Purchase product 2 5 3
Total number of customer who check out product : 43Total number of customer who purchase product : 3
Most customers are attracted to the eye-catching POP display of Esmeria Organics product. However, unfamiliarity of the brand cause minimal purchase of product throughout the 3 hours of observation.
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3.27 Online Survey
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3.28 Interview
Due to management policy, I have failed to arrange an interview with the company either face-to-face or online interview. Below are the exchange of emails between me and their representative:
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CHAPTER 10 – PRECEDENT STUDIES
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CHAPTER 10: PRECEDENT STUDIES
3.29 Advertising Strategies
Figure 10.1 Product sample
Figure 10.2 Price Promotion
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Figure 10.3 Online contest
Figure 10.4 Buy1 free 1 Figure 10.5 Price discount
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Figure 10.6 Poster & banner
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3.30 Precedent Studies
a) Magazine
Figure 10.7 Magazine Article & Appearance
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Figure 10.8 Magazine Article & Appearance
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Figure 10.9 Magazine Article & Appearance
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Figure 10.10 Magazine Article & Appearance
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b) Newspaper
Figure 10.11 Harian Metro 24Feb2011 Figure 10.12 An artical on EcoCert with comments from our MD and the President of EcoCert japan
Figure 10.13 Sin Chew Newspaper 24Apr2011 Pg30
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Figure 10.14 Berita Harian 14Feb2011 Pg24
Figure 10.15 Berita Harian 14Feb2011 Pg25
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Figure 10.16 NST 16Feb2011
Figure 10.17 The Star 17Feb2011
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Figure 10.18 The Star 11Feb2011
Figure 10.19 The Sun 14Feb2011
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C) Award
Figure 10.20 Award &nomination
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CHAPTER 11 – REFERENCES
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CHAPTER 11: REFERENCES
Esmeria Organics is an official site that presents information and data of the brand and products (http://www.esmeria.com/)
Esmeria Organics Facebook page is an official Facebook page that presents information and data of the brand and products (https://www.facebook.com/esmeriaorganics/)
Ili, F. (2011, November 26). Organic Skin Care Survey, Retrieved Nivember 28, 2011, from https://docs.google.com/spreadsheet/viewform?formkey=dFJyNXFLLWp2RlhhRUQyM0FKSmlGaFE6MQ
Alexander, K. (2008). Annual State of the Cosmetics and Toiletries Industry. Skin Inc [Online]. Available: http://www.skininc.com/spabusiness/trends/20387014.html?page=1
Opportunity Malaysia (2011). Cosmetics and Toiletries Malaysia. Malaysia Mission [Online]. Available: http://www.malaysiamission.com/team.php?id=31
American Consulate General. (2011). Asia-Pacific Cosmetics and Toiletries Market Overview. U.S. Commercial Service [Online] Available: http://export.gov/hongkong/build/groups/public/@eg_hk/documents/webcontent/eg_hk_039451.pdf
Tan, E. (2011). Entrepreneur. The Edge [Online]. Available: http://www.theedgemalaysia.com/management/186803-entrepreneur.html
The Stars. (2011, February 11). Beauty Business That Started In Her Own Kitchen. The Stars [Online]. Available: http://thestar.com.my/metro/story.asp?file=/2011/2/11/central/7832075&sec=central
Poo, C. (2011, February 17). Declared Safe. The Stars [Online]. Available: http://thestar.com.my/lifestyle/story.asp?sec=lifeliving&file=/2011/2/17/lifeliving/8025532
Kidbux. (2011). Esmeria Organic A Homegrown Organic Skincare. Kidbuxblog [Online]. Available: http://www.kidbuxblog.com/talk-beauty-healthy/esmeria-organic-a-homegrown-organic-skincare
Female. (2011, April 1). Green Ambition. Female Mag [Online]. Available: http://www.femalemag.com.my/2011/04/01/green-ambition-3/
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CHAPTER 12 – APPENDICES
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CHAPTER 12: APPENDICES
Organic Skin Care Survey
Good day to you. I am Ili, currently a bachelor student of Multimedia majoring in Media Innovation at Multimedia University. This is a general survey of your perception and use of organic skin care products. The survey consists of three parts. The first is demographic questions , the second is general skin care questions, and the third is brand-related questions. Thank you very much for participating in this survey.
Demographic Questions
1. Gender *
Male
Female
2. Age range *
Below 18
19 - 25
26 - 30
31 - 40
Above 40
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3. Occupation *
Student
Working
Part-timer
Not working
4. Income range or monthly allowance *
Below 500
501 - 1000
1001 - 2000
2001 - 4000
Above 4000
General Skin Care Questions
5. When did you start using skin care product? *
Before 12
13- 15
16 - 17
18 - 21
22 - 25
After 26
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6. What is your budget for skin care products? *
Below 50
51 - 100
101 - 200
Above 200
Don't have budget, as long as the products is suitable for my skin
7. What is your favourite skincare brand?
*Please provide one OR more brand
8. How much do you think is reasonable for an organic skincare product?
*Please provide an exact amount (ie. RM50) or a price range (ie. RM80-RM100)
9. How did you get to know about the brand you are using? *
Magazine
TV Commercial
Radio
Press Ad
Internet
Recommended by friends or relatives
Other:
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10. Where would you normally purchase your skin care product? *
Retail shop
Beauty salon
Pharmacy
Online
Other:
11. Why would you purchase a product?
*Please select one or more
Economically priced / promotion
Beautifully packaged
Famous brand
Advertisement
High quality / assured results
Recommended by friends/family
No personal perference. it's the brand you/your family is using all this while
Other:
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12. You would prefer a skincare which is: *Please select one or more
All natural
Mainstream products (ie. ones with at least a few synthetic ingredients)
Products with scientifically proven active ingredients, whether natural or synthetic
No concern on chemical contained, as long as it provide effective results
Other:
13. Are you aware/concern of the ingredients used to make the product in which you apply? *
Yes
No
Considerably
14. How often do you check on skincare product labels when buying them? *
Always
Most of the times
Sometimes
Rarely
Never
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15. Please rate the importance of each of the following green/environmental aspects to you, with 1 being the least important and 5 being the most important. Please rate the answer in the column provided *
1 2 3 4 5
(a) The use of natural/organic ingredients in various types of health and beauty products
(b) Designing products/packaging with more environmentally-friendly contents and minimal packaging
(c) For companies to offer more green products in their shelves
(d) Producing cosmetic products that are free from animal testing
16. If there are two products, one of which is a green product and the other is not, which would you choose? *
I would choose the greener product, even if it costs more
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I would choose the greener product, if it doesn’t cost more than the normal product.
I would choose to pay more for the greener product, only if it offer added value.
17. What could have hindered you from purchasing green/environmentally responsible products? *
Less money to spend and environmental products seem to cost more
Are unaware of green products available in the store
Feel there are not enough green-product options
Prefer another brand
Don’t trust green product claims
Think green products are of lesser quality
None of these
Brand-related Questions
18. Are you aware of a brand called Esmeria Organics? *http://www.esmeria.com/
Yes. (Please answer Question 19)
No. (You can skip Question 19)
19. How did you get to know about this brand?
Magazine
TV Commercial
Radio
Press Ad
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Internet
By friends or relatives
20. Are you currently an Esmeria Organics user? *
Yes
No
21. Do you know that Esmeria Organics is the first Malaysian brand that is certified organic by Ecocert; the very first certification body to develop standards for "natural and organic cosmetics"? *
Yes
No
22. Do you find the price offered are reasonable and affordable, which starts at RM25.90? *
Yes
No
23. Would you consider switching to Esmeria Organics? *
Yes, I'm worried with using harmful chemical on skin
Yes, I wouldn't mind just trying
Maybe, I don't have any personal preference when choosing skincare brand
No, the brand is not interesting and unpromising
No, I dislike Malaysia brand
24. Please share you valuable opinion regarding Esmeria Organics to improve the brand *
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