Genius3Pre Case Study

Group Member :

Mohd Rizal Bin Kismath Batcha 85800

Mohd Azizul Hakim Bin Zaini 80024

Muhammad Raof Bin Yaaccob 85803

The Market The local sun care products market is valued at

approximately RM 9 million with sees low current value growth of less than 2% in 2006 & 2007.

Sun protection only to see growth in 2006 & 2007, rising just under 3%.

Sales were restricted to tourist with limited use among Malaysian.

But numerous new product launches also signified that the market still have room for growth.

Table 1 Sales of Sun protection: Value 2001-2006

Table 2 Sales of Sun protection : % Value Growth 2001-2006

Source: Official statistics, trade associations, trade press, company research, trade interviews, Euromonitor International estimates

Year 2005/2006 2001-06 CAGR 2001/06 Total

% current value growth

2.8 3.8 20.4

Year 2001 2002 2003 2004 2005 2006 2007 e2008

RM million

6.9 7.4 7.6 7.8 8.0 8.2 8.4 8.5

Mass brands still continues to dominate the market.

Increasing sales of premium product are supported by the improving economy and purchasing power.

Many private label brands are improving in quality and attracting a growing number of consumers who are keen to get value for money.

According to the industry, the market is saturated with many different types of products and in the long run, establish brands that emphasize quality and service will have the edge.

Market TypeMass MarketLow to medium range price protective sun care products are sold at mass market in supermarkets, pharmacies and through direct selling agents such as Avon, Amway, Cosway, Maybelline and L’Oreal.

Prestige / Premium BrandsExclusive brands such as Estee Lauder, Clinique, Chanel and Shiseido are usually sold at major departmental stores.

OthersIndividual outlets of private brand (especially franchise chains) these usually specialize in natural based products that offer niche and specialized products to the middle and higher income groups. 

Distribution Channels 

Supermarkets / hypermarkets The most important channel for mass brands in Malaysia such Nivea, Johnson&Johnson, Neutrogena, Maybelline and L'Oreal. These brands using Giant, Tesco & Carrefour to reach the mass market. These brands positioning as good quality at affordable price that mainly target the low income consumers.  

Department Stores The increase in the standard of living leads to higher demand for high quality products. Premium brands such as Estee Lauder, Chanel, Christian Dior, Gucci, Bobby Brown, Clinique, La Mer and Shiseido are usually sold over-the-counter in major department stores such as: Isetan, Parkson, and Metrojaya.

Cont’s….

Pharmacy/Personal Care Stores Pharmacy and personal care stores such as Guardian and Watson are the most popular one-stop center for mass brand. Brands that cater to the mass market such as Neutrogena, L'Oreal, Nivea and Maybelline are primarily sold at these outlets.     

Direct Sales/Marketing Avon & Amway are the most popular direct sellers in Malaysia due to their larger number of distributors who are able to reach consumers living in rural and suburban areas. Other reputable brands, such as Sothy's and Thalgo, are distributed by dealers. 

Specialty Stores Specialty stores are becoming an important channel for premium and upper-mass brands. These stores cater to consumers with higher purchasing power. The more well-known specialty store players are The Body Shop, Crabtree & Evelyn, L’Occitane and Sasa (from Hong Kong).

The Consumer Attitude

Protective sun care segment are still relatively undeveloped compared those developed countries.

Demands for sun protection is expected to increase as consumers are becoming more aware of the harmful damage of ultra violet rays to the skin.

Sales of these products were mainly restricted to consumers who are mainly young educated and career women that concern on their skin care, with limited use among men.

Chinese are the main consumers followed Malay and Indian. Usually the Malaysian consumer used sun protection product on their face with limited use on several expose body part.

New Consumer Trends

Demand of natural cosmetics Associate brand with fashion More favor to many attributes in product Associate brand with dermatology research Men an increasingly important consumer segment (metro sexual) Direct sales model Shifting focus towards the young consumers Today, beauty definitions include beauty with good health. self esteem, and

confidence.

Avon

Well and most popular direct seller in Malaysia Larger numbers of distributor who are able to reach

consumer living in rural and suburban areas. Offer broad range of products to every types of customer Main competitor is Amway, Cosway, Maybelline and

L’Oreal. Independent sell raps create personal catered feel Brand name is not advertise as other cosmetic

company's “Low end” product perception

Estee Lauder

Well recognize brand name Presence in 130 countries Consumer associate the brand with fashion and

expertise in cosmetics So mostly in high end department stores, which limit its

customer base. Targeted to the high income and upper class consumer Offer exclusive broad of product for men's and women's

with elegance of packaging

Vichy SWOT Analysis

Strengths 

Weaknesses 

Strong and focused brand portfolio presence in emerging markets Strong R&D capability The brand associated with expertise in dermatology research Well-controlled marketing and distribution allied to high-quality products Well received and are perceived to be of high quality Owned by L'Oreal a well known global cosmetic company The products are suitable for all skin types even the most sensitive

Dependence on Western European markets late entry into Malaysia Weak brand name awareness among Malaysian consumer

Opportunities 

Threats 

Growth in adjacent categories Innovation will play a vital part in securing share Increase brand name awareness by advertising Educating consumer on sun protection will be essential to growth

Competition from private labels Price competition among branded manufacturers Expansion of competitor into new sector Weak economy can hurt company

Vichy Opportunities

Education Strategy Vichy will need to increase awareness among local consumers regarding

the potential for skin damage caused by prolonged exposure to the sun even on tanned skin

Positioning and Image More than a beauty brand Vichy, positioning self in derma-skincare, which

combines the expertise of dermatology with the enjoyment of skincare

Communication Strategy Advertising and promotion is crucial for cosmetics and toiletries products, in order

to create an awareness of new products and build brand loyalty among consumers.

Advertisements in TV and the print media such as newspapers and magazines especially women's magazines are suitable.

Market Share As a new brand in Malaysia, Vichy share market are still small compare to a well known brands such as Esteelauder, Clinique, Seisedo, Nivea and Avon.

Product Vichy offer derma-skin care product that suitable for all skin type even the most

sensitive. The packaging design are simple but attractive to the target customers. It also

reflect its status as a premium brand.

Cont’s…

Cont’sBusiness Performance Vichy has select several popular and well known pharmacies with wide

outlet such as Watson, Guardian and Origin to distribute its product to the targeted customers.

This well known pharmacies are suitable with Vichy image as a upper mass / premium brand for derma-skin care products.

The 4 P’s As a premium brand, range price for Vichy product are quiet higher compare

to mass brand product such as Nivea, Neutrogena and Johnson & Johnson

Consumers As a premium brand, Vichy’s customers are mainly young adult from middle

and higher income.

New Product For Capital Soleil

Capital Soleil - Family care Advance

Family is vital for us so we propose Capital Soleil to introduce a new protective sun care product that protect the whole family from UVA and UVB rays call “family care advance”

Formulated with improved, broad spectrum UVA and UVB protection, enriched with natural aloe and vitamin A, C and E to help moisturized skin.

Cont’s…

The price range propose are RM59.90 for 500ml and RM99.90 for 1000ml

Family Advance Care are the complete sun protection lotion targeted for urban, middle and upper income family that not just protect from the sun but in advance contain nutrition for healthy skin

The End

Health is vital. Start with your skin

Thank You