SKINFOOD | 1

CHAPTER 1 :

PROJECT OVERVIEW

SKINFOOD | 2

1.1 Introduction

Skinfood is a South Korean cosmetics manufacturer with headquarters in Seoul since

1957 that launched their first shop in 2004 in Korea. Skinfood are selling in 12 different

countries and generally have 25 branches in Malaysia. Meanwhile, in total Skinfood have total

909 stores worldwide. The motto of their product is “good food for health is also good for the

skin” which make them become the first food cosmetic brand developed with a differentiated

unique concept of 'food'. Then, because of that, it became a well-known cosmetic and skincare

brand in many countries outside South Korea such as Taiwan, Malaysia, Singapore, and others.

As seen from their motto, all of their products emphasis from the best and healthiest

organic food ingredient scented and bottled according to their design and formulation concepts.

One of their avocado products even listed in the Guinness World Records. Avocado which is rich

in moisturizing oils and vitamin E. Meanwhile, for example like rice which has a natural

whitening agent that help with skin’s discoloration. A few examples are like Tomato which is

not only antioxidants, but is also full in vitamin c which can help to make a skin appear brighter.

Their logo shows their purity and goodness product and a guardian angel as their

mascot sent to protect and carefully guard your skin towards a healthier skin. Basically, this

product is suitable for all ranged of age who wants to enhance their beauty appearance but at

the same times care about the health and aware on the dangerous of the chemical hazardous

cosmetics in current market.

SKINFOOD | 3

1.2 Problem Statement and Issues

Skinfood cosmetics are known as a food-based product which is suitable for all

age group. Therefore, it is logical that Skinfood’s packaging are not intends to directly

focused on certain generation but instead their packaging are a bit dull and unattractive

enough to grabs the buyers intention from buying Skinfood products. Most female

teenagers would prefer to choose Skinfood’s competitor products who offer a more

appealing cosmetics packaging. Moreover, most of Skinfood’s competitor already one

step ahead by appointed the famous and exclusive ambassador to attract the

ambassador’s fanatic fans to use their products. Meanwhile the older female

generations are more prefers to choose the cosmetics brands which offer a specific

treatment that is suitable for them such as anti-wrinkle and collagen cosmetic. The

other reason is Skinfood’s products are always being looked as one of the overpriced

products to be compared with the other competitors even though in reality the price is

somewhat similar. Therefore many of the potential buyers choose to buy the other

brands product. The most critical issues ever happened to Skinfood is regarding the nail

polish products made in Korea namely ‘Skin Food Jojoba Pure Nail PK 004’ and ‘Skin

Food Milk Creamy Nail Base Coat’ found to contain trace amounts of benzene.

1.3 Objective

To investigate the brand awareness and people’s perception among the consumers and

the target audience.

To determine product’s strength and weakness point.

To calculate the market situation of food-based cosmetic.

To come up with the effective ways of strategy to promote and make the improvement

to the brand.

1.4 Aims

This project will help to attract the consumers to trust and interested to use the brand.

While, this project will enhance the brand awareness to the more specific target market and

therefore become a leading brand in food-based cosmetic industry and gain trust among

Malaysian people.

SKINFOOD | 4

CHAPTER 2 :

PROJECT PROFILE

SKINFOOD | 5

2.1 Product Name

Skinfood

2.2 Product Classification

Skinfood is the cosmetic products which is using food as their based ingredients, which

is safe and healthy to users and are not hazardous as the chemical products found in

Malaysia. Skinfood is the first company pursuing the food-based method in cosmetics

that is ever developed.

2.3 Product Characteristics

Type : Cosmetics – Skinfood

Packaging : inspired by plastic containers for condiments and foods.

Beauty Care Range : - Make up

- Cleansing

- Mask/Packs

- Body/Hair care

- Men/Baby care

- Make up tools

Pricing RANGE : RM 29.90 – RM139.00

Unit Per Sale : Per product

2.4 Product Range

2.4.1 Skinfood

Skinfood is a safe and healthy cosmetic products that is using food-based ingredient.

There are several types of beauty care produce by Skinfood such as make up, cleansing wash,

mask and packs, body and hair care product, men care and also make up tools. The products

are not only promotes the food ingredient products but also create the awareness on using safe

and healthy products for the skin. The product also creates the image of environmental friendly

by using the recycle bottle and stickers.

SKINFOOD | 6

a) Skinfood’s Skincare Products :

SKINFOOD | 7

b) Skinfood’s Make Up Products :

SKINFOOD | 8

c) Skinfood’s Cleansing Products

SKINFOOD | 9

d) Skinfood’s Mask/Packs

SKINFOOD | 10

e) Skinfood’s Body/Hair care

SKINFOOD | 11

f) Skinfood’s Men/Baby Care

SKINFOOD | 12

g) Skinfood’s Make up Tools :

SKINFOOD | 13

2.5 Distribution

Skinfood products are distributed in a direct way. All the products are sold only at the Skinfood

stores which are located in retails outlets, supermarkets and hypermarkets worldwide.

2.6 Product Life Circle

SKINFOOD | 14

2.7 The Brand

Skinfood is a cosmetic brand for women that are very safe and healthy without

any effects to the users. It is a food-based cosmetic that is using fruits and other kind of foods

to create the products. Skinfood is a South Korean manufacturer and retailer with the

headquarters in Seoul. The main concept for this brand is to create products with nutritional

values of food. it was first set up in 1957 and slowly becoming a bigger brand and being sold to

the other foreign countries such as Taiwan , Philippines , Hong Kong , Singapore and Malaysia.

Besides the food cosmetics that Skinfood pursuing, they also produces other skincare

such as cleansing wash, mask and packs, body and hair care products, and also make up tools.

All of their products are produced using nature ingredient which is food. they believed that the

good food human’s consumed are also good for skin. This gives Malaysian an easy way to use

the skincare and cosmetic with no risk and effects to their health in long period of time.

Skinfood product used 100% nature ingredients to nourishing the skin.

2.8 Brand Image and Implication

The desired brand image for the consumers is to able to experience using the skincare with

food based essence to make the consumers being able to enhancing their appearance without

worrying the bad effects on their health later on. The brand has a big potential in Malaysia since

there are not a lot of other cosmetics brands that offer the same concept as skinfood which is

safe and healthy cosmetics using food as their main ingredients in the product itself. Therefore,

skinfood brand has a really high value to be compared with others cosmetics brand which are

known to test their product on the animal. Skinfood brand image of selling a safe cosmetic

product needs to be implemented intensely in the mind of the consumers to make them not

SKINFOOD | 15

just choosing Skinfood are not only just affected by the product, but also by the images and

identification associated with the brand product itself.

2.9 Strength and Weakness

Strengths :

The first food cosmetic brand developed with a differentiated unique concept of 'food'

100% based on food

No side effects on users

No hazardous chemicals with cancer risk

Using recycle and bio degradable bottles as packaging

Not tested on animal

One of their avocado products even listed in the Guinness World Records

Smell nice with food concentrate

Have a lot of variety of skincare lines that consist of skincare products, masks, make up

and also make up tools.

Weakness :

The price is more expensive than Skinfood’s competitors

Most consumers still are not aware of the dangerous effects on using chemically

produced cosmetics

Skinfood stores only available in big shopping complex and urban areas

The packaging is not attractive enough

2.10 Advantages and Disadvantages

Advantages :

Eco friendly packaging

Are not using chemical as their main ingredient

Targeted to broader audiences with a variety of skincare range

Affordable price range

No side effects on users

The retail shop are easier to find in the shopping complex

SKINFOOD | 16

Disadvantages :

Packaging are not attractive for certain target audience

Not attractive retail shop concept

Consumers always assumed skinfood’s product are overprice

Too many competitors in skincare industry

Some consumers still not have enough trust towards Korean products.

2.11 Unique Selling Proposition (USP)

Skinfood skincare products are the first food cosmetic brand developed with a

differentiated unique concept of 'food'. Meanwhile, one of their avocado products even listed

in the Guinness World Records

SKINFOOD | 17

2.12 Promotional History and Advertising Schedule

Skinfood skincare product Promotional activities focus on giving consumers the best

deals and services for their skincare products mostly through their website, facebook page ,

blog , advertisement (printed and commercials) and also all their ground activities.

Promotion deals with a certain duration.

Skinfood Skincare Workshop for Ray Girl Search 2012

Seasonal promotion television commercial

SKINFOOD | 18

Exhibition booth

SKINFOOD | 19

Promoting the the eva armisein for skinfood family collection.

Promoting the new limited edition of eva armisein with the offer if purchase price of

rm180 worth of skinfood products will get the limited edition eva armisein handkerchief

for free.

Weekend wonders promotion from 5-7 july with special price.

Limited time value buys. Buy skinfood product in sets with a great price.

Seasonal promotion on christmast. Selling items in gift sets with special price.

Skinfood’s television commercials.

Exhibition booth in One Utama and Fahrenheit promoting the new skinfood product

lines.

Skinfood cruise contest with cooperation and sponsorship from Mines cruise Malaysia.

2.12 Positioning Statement

Skinfood skincare product is an established brand that selling in 12 different countries

and generally have 25 branches in Malaysia since 1957 with their first shop launched in 2004.In

Malaysia, Skinfood outlets can be found in the supermarkets and hypermarkets nationwide.

Skinfood products has a consistent high quality and innovative products that is radiant lasting

beauty, enhancing a person appearance and at the same time also provide a healthy and safe

risk towards their users by using purely food-based essence ingredients and formulations that

are eco-friendly and affordable, targeting the beauty and health conscious individuals.

SKINFOOD | 20

CHAPTER 3 :

THE COMPANY

SKINFOOD | 21

Chapter 3 : The company

3.1 Company Overview

Skinfood is is a South Korean skincare and cosmetics manufacturer and retailer,

headquarter in Seoul. The owner of the company has been involved in the skincare business

since 1957. The main concept of the company is to create products with nutritional values of

food. The company slogan is "beauty food for the urban sweety". Skin Food's logo, as seen on

all of their products, is a guardian angel. The logo was designed to convey the message to their

customers of the purity and goodness in their products. The logo was actually taken from

another company and then altered to avoid any legal actions. In addition, the logo also connote

that Skin Food is like a guardian angel sent to protect and carefully guard your skin towards a

healthier skin. It has 895 stores throughout Korea, located in shopping districts, hypermarkets,

shopping malls and residential areas. Skin Food has seen increase in sales from foreign visitors

and have opened outlets outside South Korea in countries such as Taiwan, Philippines, China,

Malaysia, Singapore, Japan and Hong Kong. Korean actresses Sung Yu-ri and Brazilian singer

Stephanie Garden was featured in Skin Food Korea commercials.

SKINFOOD | 22

3.2 Business Description

In Malaysia, Skinfood has made a huge transformation and innovation to its core

product in terms of its branding, packaging and promotion while expanding its range of

products to sustain its market and growth in its business. The company continue monitoring the

products,market and customer relationship through its many interactive platforms and focusing

on providing a quality products through their continuous research and development in

improving and producing new products to meet and excedd consumers expectation. Findings

from the various scientific researches firmly support the benefits of Skinfood’s product

especially in the improvement and performance.

The company has also innovated its customer services by making it more effective and

accessible and customer friendly. The company has evolved from the traditional approach to

contemporary ways of reaching as many segments of the market. They tend to be specific for

example like the young, the working adults and the senior citizens. it has also kept up with the

times and evolved its forms of communication to include educational and informative web-

pages on health matters as well as provide a platform for an educational tour through the

Skinfood exhibition and promoting new products.

To further reach out to the younger generations, the company developed different

Facebook accounts to cater to its different product themes such as the Skinfood facebook page

and twitter which is easier to targeting younger generation. With a constant and daily updates

on these social network, this style of promotion can attract youngsters to try Skinfood product.

3.3 Company History

SkinFood is a very recent phenomenon in Korea, a country that is today seen as a fast rising star

in the eyes of the world in terms of consumer products. Brands like Samsung, Hyundai, and Kia

represent not only good value to consumers but are also perceived to offer good quality and

reliable products. The popularity of the Korean dramas in Malaysia is also testament that

Korean lifestyle and fashion is well accepted and popular in Malaysia.

SkinFood is owned by Peeres Cosmetics in Korea, a company that has been in the business of

manufacturing and producing skin care and cosmetic products in Korea since 1957. Their

products have also been exported from Korea worldwide and the company is no stranger in

Malaysia having supplied direct selling companies like Mode Circle and Peeres Americ in this

country. Having spent over 45 years in the traditional mainstream cosmetics business, they with

their new management turned their attention to developing a lifestyle brand that was more in

tune with the younger consumers in Korea and throughout the world. As a result, a new line of

SKINFOOD | 23

skin care and cosmetic products based entirely on the benefits of food was developed in 2003

and the first SkinFood franchise store was opened in the Myeongdong area in Seoul in

December 2004. Although, the plan was only to set up between 6 to 8 stores in 2005, the

roaring success of SkinFood in Korea has resulted in over 170 franchise SkinFood stores already

opened in Korea up to June 2006 with many new stores planned for the remainder 2006.

Although, this was primarily a trial for SkinFood, its popularity has not gone unnoticed in the

region, within 3 months of opening their first store in Korea, their first franchise store outside

Korea was established in Taipei, Taiwan. Today, Taiwan has 30 stores with another 3

undergoing renovation to be opened in the next 2 months.

SkinFood has already signed on Master Licensee contracts in Indonesia and Philippines,

Singapore has opened 3 stores and will open another in the second half of 2006 and Thailand

has already opened 6 stores with another 3 undergoing renovation.

Hong Kong opened 5 stores since June 2006. Meanwhile in Malaysia there are 25 branches of

outlets.

3.4 Key People

Board of Directors

Michael Christopher Mehta

o Director o Date of appointment (05-04-2005)

Cho Yoon Sung

o Director o Date of appointment (05-04-2005)

Yu Hee Ming

o Secretary o Date of appointment (05-04-2005)

SKINFOOD | 24

3.5 Location and Subsidiaries

Availability of Skinfood’s worldwide :

More focused in Asia, Skinfood’s skincare product jus has in vertain region and location such as:

Malaysia

Phone : 03-55428483(General Line) Operating Hour : 9am to 5pm(Monday – Friday except public holiday) Mailing Address: Lot 2, Kawasan Miel, Shah Alam Fasa 10, Jalan 23/5, Seksyen 23, 40300 Shah Alam, Selangor Darul Ehsan, Malaysia. Singapore Phone : +65 6468 2759(General Line) Operating Hour : 9am to 5pm(Monday – Friday except public holiday) Mailing Address : 63 Hillview Avenue #10 23 Lam Soon Industrial Building

SKINFOOD | 25

Malaysia Retailer Location Where to find :

Aeon Seri Manjung

Fahrenheit

Mahkota Cheras

Suria Sabah

Boulevard Shopping Mall

IOI Mall

Bintang Plaza Mall

KLCC

Bukit Indah Shopping Centre

Aeon AU2

Gurney Plaza

Seberang Perai

1 Borneo

Kinta City

Bukit Tinggi

Delta Mall

Batu Pahat Mall

Jaya Jusco Seremban

Alamanda Putrajaya

The Mines

Queensbay Mall

E curve

Mid Valley

Mahkota Parade

Sunway Pyramid

One Utama

3.6 Brands, Major Products and Services

Skinfood has introduced many products that cater to healthy lifestyle enhancing beauty

and appearance. Skinfood is one of the product that focusing on the beauty personal care retail

business for protecting our skin without damaging and give bad effects to ourself and

environment pollution. Below are the company’s skinfood brand and line production:

Brands

Skinfood

Products

Skincare product

Services

Retail Outlets

SKINFOOD | 26

3.7 Corporate Vision

To be the leading food-based skincare product in the Asia Pacific region by creating

value for employees, customers and shareholders.

3.8 Corporate Mission

“To protect your skin for 14years , not just 14 days” is Skinfood mission to create

a better healthy life style. They believe that in beauty within food, and that these

natural food products will enhance and protect the skin for years to come. It takes great

time and effort to produce from initial cultivation of the ingredients, to the design and

bottling process of our process. In taking this extra time to create and prepare the

products,skinfood can ensure the very best quality for their customers.

Formulate and developing the topical effects on food and make them into products that

can take longer than people anticipate.

Developers test all the ingredients that they find, and all products that they develop,

themselves : grains,vegetables,fruits.

To achieve the best beauty food in the world, skinfood travels all over the world to find

the origin of the healthiest food ingredients.

3.9 Company’s Current Promotional Strategy

Introducing a limited edition of skincare for a certain period of time

One of their avocado products even listed in the Guinness World Records

Opening exhibition booth in beauty events

Using Sung Yu ri(Korean actresses) and Stephanie Garden(Brazillian singer) to be

featured in Skinfood Korea Commercials.

SKINFOOD | 27

3.10 Product Sales’s History

Graph 3.10 (a) Overview of Sales Growth

Balance sheet Items 2010 2011

Non-current asset 259,226.00 288,484.00

Current asset 4,560,036.00 4,600,754.00

Non-current liabilities 9,983.00 69,989.00

Current liabilities 525,059.00 1,148,180.00

Share capital 100,000.00 100,000.00

Reserves 4,184,220.00 3,571,069.00

Minority Interests 0.00 0.00

Graph 3.10(b) balance sheet items

Income Statement Items 2010 2011

Revenue 9,239,103.00 11,401,162.00

Profit / (Loss) before Tax 824,110.00 1,223,212.00

Profit / (Loss) after Tax 613,151.00 919,527.00

Net dividend 0.00 0.00

Minority Interests 0.00 0.00

Graph 3.10 ( c ) Income statement items

SKINFOOD | 28

3.11 Current Marketing Objective

Skinfood’s marketing objective is to promote the usage of Skinfood food-based

ingredient skincare products as the better alternative and to promote public awareness and

practice the long term health maintenance.

Long Term

To be the leading food-based skincare product enterprises in the Asia Pacific region by

creating value for employees, consumers and shareholders.

To be the best food-based skincare product for long lasting solutions.

To be the word-class product expertise to millions of women and men across the world

and our unique equities make this possible.

To further penetrate the food-based industry both in local and global term.

To transform Malaysian and make them believe that long lasting beauty can only come

from within.

Short Term

To strengthen and enhance brand identity

as well as increase brand awareness to achieve brand loyalty among customers

To utilized every possible medium of mass media in advertising activities to reach a wide

range of audience that could extend beyond the target audience

To exceed sales expectation and sustain a greater growth yearly

3.12 Media Expenditure

As a skincare company which has many competitors in cosmetic products market, brand

awareness is very low due to minimal expose of the brand and lack of major promotional

advertising. As we know it is not easy to make them trust and believe about the product and

this strategy to reach out the consumers in using various forms of media, techniques and

strategies to capture their attention. At the moment, media expenditure is focused on small

scale and big scale advertising involving print media such as newspaper, magazines, as well as

online promotion through website, blog, facebook and twitter. So that, TVC’s commercials as

strategy to attract their attention.

The audience base are already enough to bring Skinfood to another level of marketing.

The popular and successful marketing campaigns in the beauty industry often include a free

sample and discounts for referrals to lure new customers in, and loyalty programs to keep them.

However, they has been success in gaining the brand awareness by distributing their product to

more exposed in certain area.

SKINFOOD | 29

CHAPTER 4 :

CONSUMERS &

STAKEHOLDERS

SKINFOOD | 30

Chapter 4 : Consumer and Stakeholders

4.1 Currents Consumer’s Characteristics

4.1.1 Demographics :

Age : 20 – 40

Gender : Women & Men

Education : college student , post graduated to tertiary

Occupation : Students to working adults

Allowance range : RM500 – RM 1000

Income Range : RM1000 – RM5000

Race and Ethnicity : All races

Geographical Loacation : Urban and Sub-Urban

4.1.2 Psychographics :

Perception : refreshing, nourishing, a genuine food-based skincare products with no

high risk.

Learning: They learning through print media (magazine and newspaper) , digital media

(blog, facebook page, website) , broadcast media (press launch, television) and other

(environmental factors, friends and family)

Motivation and needs : Looking for affordable food-based skincare,desire on

promotion,events,discounts as well as nice packaging and no animal based or harmful

ingredients.

Attitude : willing to try products, confident,passion,well adapt to different environment

and energetic, conscious about the use of chemical artificial ingredients in skincare

products and concern with beauty without putting health aside.

Personality : cares about beauty health,enthusiastic about life, optimistic,easy-going and

pleasant.

Lifestyle : healthy,modern,smart-spending,active,social gathering events

SKINFOOD | 31

4.2 Stakeholder Characteristic

4.2.1 Primary

Board of Directors

Supporting the company and as the representative of the stakeholders to handle

corporate management related policies and to make major decisions on company

issues,the weight off responsibilities are high as they are responsible for the actions of

the company.

Shareholders

They concerned about the market shares. A strong contributor to the company invest

money in return of the share in profit.

Employees

Help in manufacturing of of the company. Contributes man-power diligently by carrying

out their respective roles in the company as well as meeting performance standards by

the company.

Consumers

Provides good quality products to ensure no negative from them such as th very

important contributors as they are also has the reason to keep the company alive by

purchasing their products and staying loyal to the brand. All the feedback or suggestion

from them concerning the products can help to improve the quality of the products.

Supplier

Specific suppliers are important in ensuring product continuity with respect to delivery

time, quality of good dependability.

SKINFOOD | 32

4.2.2 Secondary

Distributors

Distributes the products to the consumers

Media

Concerned in promoting the brand and product publicity

Banks

The company sources of funding and get loans when business growing as well as to

assist in financial matters

Competitors

Important roles to the company to improve our brand in every aspect and as a direction

to us to compare its brands for future enhancement.

SKINFOOD | 33

CHAPTER 5 :

Industry &

Marketplace

SKINFOOD | 34

Chapter 5 : Industry and Marketplace

5.1 The Industry

5.1.1 Definition of the industry

Beauty and cosmetic health care are part of vital daily needs for billions of people with

thousands of companies involved in their development, production and distribution.

Pharmaceuticals in the beauty healthcare industry are one of the biggest sectors in world

market concerning the manufacturing of consumer products used for health and cosmetics.

This industry covers a wide aspect of retail business in the world as large share of market

consist of different market segments including beauty care, skincare, bodycare and haircare.

Not many companies in the industries pursuing on healthy nature product but more towards

producing chemically substance in their ingredients of product and using powerful technologies

such as nano technologies which make the nature food based cosmetic products are hardly

compete with those big corporation. Skinfood finally producing the food based skincare product

was finally achieved the title as the first food-based skincare produced.

SKINFOOD | 35

5.1.2 Shape of Industry

Growth in this market is on increasing trend with more products and competitors

entering the market. The culture are focusing on personal health but being beauty at the same

time. In Malaysia, beauty and personal care still performed well due to increase in personal

grooming. The number of people interested in styling their hair and wearing make up are

increasing each an every year. However, the urbanites nowadays are a little bit aware about

their health which encourage the companies to introduce more nature and food based skincare

cosmetics to meet the consumers demand. Surveys show that 38% of those surveyed claimed

that they considered on buying skincare products with nature ingredients and only 6% are

claimed that they doesn’t care about the ingredients on the skincare they are using.

Sales were sustained by increased urbanization, a rise number of women working, and

aggressive marketing and promotional activities of the retailers. From wariness of products

made in China to safety issues generally, there is a rising trend of consumers seeking out

products that do not contain harmful chemicals or are produced naturally with certification.

Although naturally positioned products have been growing for some time in western countries,

the trend has only recently emerged in Asian countries, with the slower rate in Malaysia. This

presented opportunities for players to penetrate and untapped area while suppliers of natural

or organic ingredients also benefited from the trend.

Chemist and pharmacist in addition are very competitive in their pricing and promotion,

worked well with players for in store promotion such as loyalty card. There are more Malaysian

are now concerned about their health care and physical appearance and many are now willing

to pay a high price to attain their desired look but this is just for certain consumers. What about

the young adult or younger who want to try the good personal care? An increase in purchasing

power resulted more Malaysian seeking higher quality products and branded beauty care.

Advertisement and promotion play the role in health care and beauty care products. The global

ranking of major beauty health care manufacturer have not charged since 2006. Additionally,

the personal products market consist of fragrances, make up,skincare,hair car and personal

hygiene product.

SKINFOOD | 36

5.1.3 Development of the Industry

The global healthcare and beauty industry had a strong growth in 2005. The personal

care product industry boasts roughly 750 companies produced combined with annual revenue

of more than $40billion. The 50 largest companies generate almost 70% of the entire revenue.

Still, the market will bear competition from small companies that can offers a specialized

product or cater to a particular niche market.

Healthcare in Malayssia has undergone radical transformations. Earliest pre-colonial

medical care was confined to traditional remedies current among local populations of

Malays,Chinese and other ethnic groups. The advent of colonialism brought western medical

practice.

Packaging designers must constantly inject the newest innovations to attract consumer

in a constantly evolving and highly competitive market. Keeping ahead of the competition by

bringing new and exciting products to market fast, and at the necessary level of quality, present

a major engineering challenge. Recent awareness and understanding of the dangerous of

paraben material in cosmetics, have shown a knock on effects in cosmetic products.

5.2 The Marketplace

5.2.1 Current condition of the Marketplace

Nowadays, there are many skincare and cosmetics products currently on the market and

competitors that are promise beautifully. The market of skinfood currently increasing few years

back before the competition getting tougher with the new existing skincare and cosmetic

product with the same based which is ‘korean cosmetics’. At the moment, skinfood target in

recruiting base audience and slowly gaining attracted sales share in the market.

5.2.2 Charges 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 a new brand.

SKINFOOD | 37

CHAPTER 6 :

COMPETITIVE

SITUATION

SKINFOOD | 38

Chapter 6 : Competitive Situation

6.1 Direct Competitors

6.1.1 Etude House

Etude House is a cosmetic company established in 1945. It is headquartered in Seoul,

South Korea. Etude is considered as the TOP 20 Global Beauty Companies. Etude House was

awarded the 'First Brand' prize for the Cosmetics Retail Brand Shop category. Etude officials

were presented with the award at the 8th Annual 2010 Korea First Brand Award Ceremony held

in Seoul on February 9th.

Some one million Korean consumers were polled to select brands in various consumer goods

categories based on customer satisfaction for service and product dependability. Etude House

was selected as the top brand in the Cosmetics Retail Brand Shop for its commitment to

excellence.

Etude House brand shops offer consumers a total beauty solution with a range of cosmetics,

accessories, skincare, body, fragrances and hair products. Etude officials expressed their

gratitude for being recognized as the industry leader by consumers, adding that the brand will

continue to strive for excellence in all areas of its business in order to become a global beauty

brand leader.

SKINFOOD | 39

6.1.2 The Face Shop Korea Co.,Ltd.

Originated from Korea, THEFACESHOP is a leading global retail brand in the upper value

segment offering more than 1,000 lavish products ranging from skin care, cosmetic, body care,

hair products to accessories.

Our slogan, the “Natural Story”, represents over 1,000 high quality products made of 600

natural ingredients such as rice,flower extract, fruits and various herbs.

6.2 Indirect Competitors

6.2.1 Silkygirl

SILKYGIRL is a home-grown color cosmetics brand of Alliance Cosmetics Sdn Bhd.

SILKYGIRL is an exciting brand that offers a complete range of colour cosmetics for fun-loving

teenagers and young working women wanting to beautify themselves.

SKINFOOD | 40

SILKYGIRL is created especially for young Asian women in the age group of 18 to 25, with a

number of contrasting demands, with the desire to help them define their own unique

personality through a fusion of products and colours.

Regardless of one’s features, skin tone or skin type, SILKYGIRL has just the right product that

brings out the best in oneself. The SILKYGIRL color palette ranges from bold, fun, romantic and

exhilarating hues that easily complements one’s mood and persona. SILKYGIRL aims to help

aspiring women look and feel good about and believe in themselves.

6.3 Some of other skincare products competitors

Majolica Majorca Elianto

Holika Holika Laneige

SKINFOOD | 41

CHAPTER 7 :

SWOT ANALYSIS

SKINFOOD | 42

Chapter 7 : SWOT Analysis

SKINFOOD | 43

CHAPTER 8 :

STRATEGY TARGET

AUDIENCE

SKINFOOD | 44

Chapter 8 : Strategic Target Audience

8.1 Proposed Primary Target Audience

8.1.1 Demographics :

Age : 20 – 30 years old

Gender : Female and Male

Education : College student, post graduate to tertiary

Occupation : Students to working or young adult

Allowance Range : RM500 –RM800

Income Range : RM1500 –RM5000

Race and ethnicity : All races

Geographic location : Urban and Sub-urban

8.1.2 Psychographics :

Perception : refreshing, nourishing ,a genuine food-based skincare product.

Learning : They learning through print media (magazine and newspaper) , digital

media(blog,facebook page,website) , broadcast media (press launch ,television, radio)

and other (environmental factors , friends and family)

Motivation and needs : The needs to make them look fresh and lively, looking for

affordable skincare products but with no health risk should be worried.

Attitude : Willing to try products, confident, passionate ,well adapt to different

environment and energetic,conscious about the use of chemical artificial ingredients in

skincare products and concern with beauty without putting health issue aside.

Personality : cares about appearance, healthy person, curious, enthusiastic about

life,optimistic,easy going and pleasant.

Lifestyle : healthy, modern,smart,active,educated.

SKINFOOD | 45

8.2 Proposed Secondary Target Audience

8.2.1 Demographics :

Age : 25 – 35 years old

Gender : Female

Education : Post graduated to tertiary

Occupation : working adults

Income range : RM1500 –RM5000

Race and ethnicity : All races

Geographic location : urban and sub urban

8.2.2 Psychographics :

Perception : Cheaper alternative among other existing food based skincare and other

popular cosmetics

Learning : They learning through print media (magazine and newspaper) , digital

media(blog,facebook page,website) , broadcast media (press launch ,television, radio)

and other (environmental factors , friends and family)

Motivation and needs : The needs to make them look fresh and lively, looking for

affordable skincare products but with no health risk should be worried.

Attitude : Willing to try products, confident, passionate ,well adapt to different

environment and energetic,conscious about the use of chemical artificial ingredients in

skincare products and concern with beauty without putting health issue aside.

Personality : cares about appearance, healthy person, curious, enthusiastic about

life,optimistic,easy going and pleasant.

Lifestyle : healthy, modern,smart,active,educated.

SKINFOOD | 46

CHAPTER 9 :

RESEARCH &

DEVELOPMENT

SKINFOOD | 47

Chapter 9 : Research and Development

9.1 Marketplace Research

9.1.1 Retailers visit

In order to gather more information regarding the brand, products and process

placement in comparison with its competitors, I visited the skinfood outlets in Jaya Jusco

Seremban 2. Through physical observation, I am able to acquire product information on the

product displayed, and do some small interview with the staff. I was not allowed to take

pictures of the products and therefore I was made some small talk with them and asking for

information. However, there is no information gathered as they are just a new workers and

their manager are not around.

SKINFOOD | 48

9.2 Market Observation

Over the weekend, Jaya Jusco Seremban 2 has a continuous walk in customers, but

there are only small number of people purchased the products. Below are the findings od my

observation at the pharmacy :

Place : Skinfood, Jaya Jusco Seremban 2

Time : From 4 pm -6pm

Date : 5/7/2013

Total number of customer who check out product : 15

Total number of customer who purchase product : 4

Most customers are checking out the products and then decided to just looking around and not

buying the product. Meanwhile, customers who bought the product are the return customers

since they entered the outlet with intention to buy something they already think before.

Therefore, they didn’t even need the staff to guide them into what is good for them. Mostly the

customers who purchased the skinfood product are women age from 25 to 30 years old.

SKINFOOD | 49

9.3 Online Survey

106 responses

Summary of complete responses

1 . What is your gender?

Female 76 72%

Male 30 28%

2. What is your age group?

Below 20 years old 7 7%

21 - 29 years old 87 82%

30 - 39 years old 6 6%

40 years old and above 6 6%

3. What is your ethnicity?

Malay 79 75%

Chinese 17 16%

Indian 6 6%

Other 4 4%

SKINFOOD | 50

4. What is your current profession?

Student 75 69%

Unemployed 4 4%

Employer/Employee 25 23%

Retired 4 4%

5. What is your monthly income/allowance?

RM500 and below 51 48%

RM500 - RM 1500 34 32%

RM1500 - RM3000 13 12%

RM3000 and above 8 8%

6. How often you use skincare products?

never 10 9%

few times in a year 9 8%

few times in one month 10 9%

few times in a week 10 9%

once a day 30 28%

few times in a day 37 35%

SKINFOOD | 51

7. Have you heard about any food-based skincare product?

yes 81 76%

never 26 24%

8. when choosing skincare products,which of the following factors matter to you?

no testing on animal 23 9%

availability 23 9%

product ingredients 48 19%

price 39 15%

quality 73 29%

brand 38 15%

packaging 12 5%

9. which of the following types of ingredients would make you buy a skincare product?

petroleum free 27 12%

oil free 45 20%

natural ingredient 85 38%

alcohol free 50 23%

doesn't matter 14 6%

SKINFOOD | 52

10. have you heard about the SKINFOOD skincare product before?

yes 77 73%

never 29 27%

11. how did you know the existing of SKINFOOD skincare product?

television advertisement 20 11%

magazine advertisement 34 18%

retail outlets 59 32%

social media 23 12%

friends suggestion 40 21%

Other 11 6%

12. have you ever try using SKINFOOD skincare product?

yes 39 37%

no 67 63%

SKINFOOD | 53

13. will you continue on using SKINFOOD skincare products?

yes 60 56%

no 47 44%

Number of daily responses

SKINFOOD | 54

9.4 Interview

On 10 July 2013, after the phone call I made to Skinfood’s headquarters in Shah Alam, I

got the phone number of marketing manager of skinfood and therefore I asked for the

information. However, the marketing manager stated that the information is private and

confidential. Because of that, I finally bought the information from Suruhanjaya Syarikat

Malaysia(SSM).

SKINFOOD | 55

SKINFOOD | 56

SKINFOOD | 57

CHAPTER 10 :

PRECEDENT

STUDIES

SKINFOOD | 58

Chapter 10 : Precedent Studies

10.1 Advertising Strategies

Television commercials Leaflet in Mandarin

Skinfood promotions

Skinfood contest samples

SKINFOOD | 59

10.2 Precedent Studies

SKINFOOD | 60

CHAPTER 11 :

REFERENCES

SKINFOOD | 61

Chapter 11 : References

Official website of Skinfood :

http://www.skinfood.com.my/

Official Skinfood Facebook page :

https://www.facebook.com/skinfoodMY/photos_albums

Official Skinfood blog :

http://myskinfoodblog.blogspot.com/

Official Skinfood twitter :

https://twitter.com/skinfoodMY

Research about Korean cosmetics :

http://dspace.wul.waseda.ac.jp/dspace/bitstream/2065/35060/1/ShokenBijinesuShuron_2011_9_Reun

gsinpinya.pdf

Korean cosmetics competitors research :

http://www.youtube.com/watch?v=ZDPCuUcT170

http://www.silkycosmetics.com/

http://www.thefaceshop.net.my/

SKINFOOD | 62

CHAPTER 12 :

APPENDICES

SKINFOOD | 63

Chapter 12 : Appendices

SKINFOOD | 64