SEC Lifestyle Pte Ltd
EZEQUE Skin Therapy
BA065Y New Venture Planning
Prepared by,GROUP A10
Joelle Lau Zhe-YiTng Qiu Fang
Chan SupasasinLee Jia En
Hong Xiang De
Project Description
“We will be conducting a market research to measure the awareness of the
product and understand customers’ needs and buying patterns, as well as to
evaluate the feasibility of expansion into larger markets. A marketing plan will
also be created to implement marketing strategies to improve our ability to retain
and grow business with existing customers, as well as to introduce the product to
new and potential customers. Lastly, we will build a cost-and-benefit analysis to
identify all of the costs associated with this business to ensure it remains on
budget.” 2
Business Description“SEC Lifestyle manufactures skin therapy product, EZEQUE – a non-steroidal and
botanceutical formulation to people who have eczema and for the daily care of dry,
itchy and sensitive skin through online stores and Unity Pharmacy Stores island
wide. It consists of a 2-step application in the form of mist and cream. EZEQUE
provides quick and long-lasting itch-relief while strengthening the skin barrier, and
locks-in hydration in the skin. Therefore, customers will be able to treat eczema,
relieve itchiness and soothe their skin to achieve maximum daily comfort.”
3
STEEP Analysis
4
Social - FavourableConsumer buying behaviour - Online Shopping• 26% of Singaporeans shop online at least once a week and 58%
purchase online at least once a month.• Singapore Government have expected Singaporeans to spend more of
their disposable income online by 2020 due to the rise in technology savvy consumers.
SEC Lifestyle offers both online-to-offline commerce.
Source : Go-Globe, 2016
5
Technology – FavourableConsumer buying trends - Shopping online due to technology development• Businesses are now actively implementing e-commerce as a form of
connecting with stakeholders through online websites and mobile application.• According to Statista, the revenue for food, cosmetics and pharmaceuticals e-
commerce market in Singapore has increased from S$401.36m in 2014 to S$524.81m in 2015.
SEC Lifestyle has an existing online platform and can take advantage of the rising e-commerce trend.
Source: Statista, 2016 6
Environment - UnfavourableProduct Packaging - Singapore Packaging Agreement• Many consumers often throw out the packaging after used only once or not
used at all.• Unnecessary packaging – boxes, casings, plastic wraps, foam wraps• Singapore Packaging Agreement - voluntary agreement for companies to
commit in reducing packaging waste.• 175 signatories• Reduced over 26,000 tonnes of packaging wastes• Saved more than S$58 million
Packaging of EZEQUE is made of plastic bottles and has unnecessary packaging (i.e. boxes). SEC Lifestyle is not under the list of signatories for the SPA.
Source: Ministry of the Environment & Water Resources, 20167
Industry Analysis
8
Wholesale & Retail Retail Pharmaceut
icalBeauty & Personal
CareSkincare
9
• Singapore’s skincare industry has grown by 3% from 2014 to 2015 and its
value is now at S$563 million.
• Operating receipts (2015)
• Skin care industry is at S$564.9 million
• Body care products is at S$15.7 million
Industry Size
Source : Passport, 2016
Key Players• Major industry key players :
10
Key Success Factors
Strong research and development base
Infrastructure, Global Connectivity and Skilled Manpower
Marketing Strategy
Understanding Customers’ Needs
11Source: Singapore Economic Development Board (EDB), 2016
Competitors Analysis
Market Analysis
13
Research Methodology• Quantitative Survey
• Personal Interview
• Quota Sampling
• Total Planned
400 respondents
• Total Actual
438 respondents
14
Age groupPlanned Actual
Eczema Prevention Eczema Prevention24 years old and
below20 40 29 74
25 to 34 years old 60 50 56 5435 to 44 years old 60 50 56 4645 to 54 years old 40 40 38 3855 years old and
above20 20 29 18
TOTAL 200 200 208 230
PREVENTIVE RESPONDENTS
15
A total of 230 respondents DO NOT have issue with dry, itchy skin or eczema were interviewed.
16
Profile of Respondents
Q17. GenderQ18. Age GroupQ19. Marital StatusQ20. OccupationQ21. Monthly Personal Income/ Allowance
53%47%
Gender
Male Female
17
41%
18%
17%
8%
5%3%
3%4%
Income Level
Below S$1,000 S$2,000 to S$2,999 S$3,000 to S$3,999 S$4,000 to S$4,999 S$1,000 to S$1,999 S$5,000 to S$5,999S$6,000 to S$6,999 Above S$8,000 S$7,000 to S$7,999
Awareness & Usage of Brands
No26%
Yes74%
Q2. Have you used any skincare products/moisturisers to prevent dry,
cracked skin before? • Three quarters of the interviewees have used skincare products or moisturizer.• Concerned about their
own skin condition.• Advantage for SEC
Lifestyle.
18
Awareness & Usage of Brands
Cetaphil Physiogel Eucerin QV California Baby
Aveeno EZEQUE Others0
10
20
30
40
50
60
70
80 75
2722 21
11 10
2
43
Q3. If yes, which of the following brands have you used? (You may tick more than one option)
Johnson Baby, Vaseline and Rosken
19
Types of Product Used
Other
Itch relief
Sunblock/Sunscreen
Repair cream
Body wash
Facial cleanser
Moisturiser
0 10 20 30 40 50 60 70 80
7
13
19
26
41
50
73
Q4. What type of product(s) are you using from the above mentioned brand in Question 3? (You may tick more than one option)
20
Awareness of EZEQUE Skin Therapy
Yes4%
No96%
Q5. Have you heard of EZEQUE Skin Therapy?
21
Awareness of EZEQUE Skin Therapy
Family and friends40%
Social media10%
Newspaper / Magazines30%
Retail Stores (Unity Pharmacies / Takashimaya)
20%
Q6. If yes, where have you seen or heard about EZEQUE?
Base : EZEQUE users (10 respondents)
22
Reasons for unwillingness to try:• Brand is unfamiliar.• Does not show concern/ does
not find the need to use.• Feels like it is a waste of money.• Sensitive skin issues.
Usage of EZEQUE Skin Therapy
Q8. If no, why?
Yes53%
No47%
Q7. Would you use EZEQUE if it can prevent dry, cracked, itchy and
scaling skin?
23
BRAND PRICE QUALITY AVAILABILITY EASY TO USE0
20
40
60
80
100
120
140
Factors Influencing Purchasing Behaviour
Q9. Please indicate the level of importance when purchasing dry skin preventive products for each of the following factors. (Rank in order of importance with “1” being the most important, and “5” being the least important.)
73
56
33
24
BRAND PRICE QUALITY AVAILABILITY EASY TO USE0
20
40
60
80
100
120
140
Factors Influencing Purchasing Behaviour
84
25Q9. Please indicate the level of importance when purchasing dry skin preventive products for each of the following factors. (Rank in order of importance with “1” being the most important, and “5” being the least important.)
BRAND PRICE QUALITY AVAILABILITY EASY TO USE0
20
40
60
80
100
120
140
13
Factors Influencing Purchasing Behaviour131
26Q9. Please indicate the level of importance when purchasing dry skin preventive products for each of the following factors. (Rank in order of importance with “1” being the most important, and “5” being the least important.)
BRAND PRICE QUALITY AVAILABILITY EASY TO USE0
20
40
60
80
100
120
140
91
Factors Influencing Purchasing Behaviour
27Q9. Please indicate the level of importance when purchasing dry skin preventive products for each of the following factors. (Rank in order of importance with “1” being the most important, and “5” being the least important.)
BRAND PRICE QUALITY AVAILABILITY EASY TO USE0
20
40
60
80
100
120
140
68
15
Factors Influencing Purchasing Behaviour
28Q9. Please indicate the level of importance when purchasing dry skin preventive products for each of the following factors. (Rank in order of importance with “1” being the most important, and “5” being the least important.)
Type of Ingredients No. of Responses
Natural 211
Non-comedogenic (prevent blockage of pores) 74
Oil-free 65
Alcohol-free 64
Dye-free 54
Petroleum-free 37
Others 3
Q10. Which of the following ingredients would make you more likely to purchase a dry skin preventive product? (You may tick more than one option)
Type of Ingredients Influencing Purchase of Dry Skin Preventive Product
29
Q11. How do you usually get information/learn about a dry skin preventive product? (You may tick more than one option)
Information Sourcing of Dry Skin Preventive Product
Radio
Official website
Newspaper
Television
In Retail Stores
Online Search
Social media
Doctor/Dermatologist
Word of Mouth
0 20 40 60 80 100 120 140 160 180
15
36
40
52
53
57
64
109
165
• Similar results to the eczema interview for top two ways
• May not be able to reach out to many consumers since people these days do not read Newspaper
• Work with Clinics or National Skin Centre
30
Q12. Where do you usually buy your dry skin preventive product? (You may tick more than one option)
Place of Purchase for Dry Skin Preventive Products
Guardian Watson Medical clinics Unity Online stores Official website Other0
20
40
60
80
100
120
140
160145 144
87
60
2315
10
• Similar results to the eczema interview for top three places
• Many do not browse through and purchase products from Unity
• Venture into Guardian or Watson to gain a larger customer base
• Others: NTUC Fairprice and Official retail stores
31
Q13. What will cause you to try out a new dry skin preventive product? (You may tick more than one option)
Factors Influencing Trying of New Dry Skin Preventive Products
Family / Friends Promotions Advertisement Price Brand0
20
40
60
80
100
120
140
160
180
200183
7360
52 51
32
Maximum Amount Willing to Spend
37%
42%11%
3%
2% 5%
Q14. What is the maximum amount you are willing to spend on dry skin preventive products?
S$20S$40S$60S$80S$100More than S$100
33
Maximum Amount Willing to Spend
58%25%
11%
6%
Q15. What is the maximum amount you are willing to spend on a 50ml mist and 50ml cream?
S$30S$40S$50More than S$50
34
Promotions that Attract Consumers Q16. What kind of promotion will most entice you when purchasing dry skin preventive products? (Tick only ONE option)
Cash discounts Product/Sample giveaway
One-for-One Bundle pricings Others0
10
20
30
40
50
60
70
80
7166
48
38
7
35
MARKET SEGMENTATION
& TARGETING36
Demographics
37Source: (Singstat, 2015)
Male and Female15 to 30 years old
Monthly Income < S$4,000
POTENTIAL TARGET MARKET = 279,600 people
Market Size
38
TARGET MARKET279,600 people
53% MARKET VOLUME148,188 people
MARKET VOLUME148,188 people
PRICE OF EZEQUES$48.80
ANNUAL MARKET POTENTIAL
S$7,321,574.40
PERCEPTUAL MAPS
39
CURRENT POSITION – QUALITY & PRICE
40
High Price
Low Quality
High Quality
Low Price
RECOMMENDED POSITION – QUALITY & PRICE
41
High Price
Low Quality
High Quality
Low Price
CURRENT POSITION – VARIETY & TYPE OF RETAILING
42
Store-based retailing
Narrow Variety
Broad Variety
Online retail-ing
RECOMMENDED POSITION – VARIETY & TYPE OF RETAILING
43
Store-based retailing
Narrow Variety
Broad Variety
Online retail-ing
MARKETING OBJECTIVESTo launch EZEQUE’s new packaging by December
2017
To increase sales by 20% by the end of 2017
To venture into online marketplaces by the first
quarter of 2017
To generate S$2.00 increase in sales for every S$1.00 spent on marketing
and communication campaigns
To reach 5,000 likes on the SEC Lifestyle Facebook page and at least 1,000
followers on SEC Lifestyle’s Instagram within a year
44
Marketing Mix Acronym - RELIEVE
45
Valuable (Pricing)
E-commerce(Placing & Promotion)
Low Distribution
Cost(Placing)
Effective (Product
& Promotion)
Internet Marketing (Promotion)
Reachable(Placing)
Easy to Use
(Product)
R
E
L
I
E
E
V
PRODUCT STRATEGY
46
RECOMMENDED – CONTAINER DESIGN
DUAL – CHAMBER CONTAINER
47
Mist
Cream
Semi-transparent
BENEFITS• Dual function – Easy to use• Convenience – On the go use
RECOMMENDED – CONTAINER DESIGN
48
RECOMMENDED – OUTER PACKAGING
BEFORE AFTER
49
PRICING STRATEGY
50
Pricing Objectives
51
Profit Maximization (Planned distribution cost, COGS & other expenses)1
Increase brand image and reputation in the market2
To be priced competitively in the market3
Recommended pricing strategy
52
Cost-Plus Pricing
Venture into online marketplaces
Lower distribution cost Higher profit margin
Value-Based Pricing
New packaging design & natural ingredients
formulation
Raise the perceived value of product
Promotional Pricing
Seasonal discounts
Bundle discounts – buy 4 bottles free 1
PLACING STRATEGY
53
Easily accessible & Reachable by
target audience
Future of distribution
54
Online marketplace - Qoo10
55
Product Offerings All rounded
User base 900, 000 users
LocationsJapan, China, Hong Kong, Indonesia, Malaysia, and
Singapore• Registration• Product listingOnline storefront
Total Transaction Amount = Selling Price + Optional Fee + Shipping Fee
• Depends on Seller Grade & Item Price
• Ranging from 7% to 12% of total transaction amount
1. Seller coupons2. Group buy3. Bidding promotions –
Placements
Online marketplace - lazada
56
Product Offerings All rounded
LocationsMalaysia, Indonesia, Thailand,
Singapore, Philippines and Vietnam • Registration
• Product listingOnline storefront
Note: Must be a registered business in Singapore
• 8% commission for health & beauty products.
• Paid only when items are sold
1. Lazada Affliate Program2. Seller Incentive Program3. Lazada Promotion Tool
(subjected to approval)
Online PLATFORM – HERMO SG
57
• Hermo will be purchasing the products to sell.
• T&C are subjected to both parties’ agreement.
1. Seasonal offers & discounts (subjected to agreements)
2. Registered customers receive vouchers occasionally
Product Offerings Beauty & Wellness
User base 200, 000 users
Locations Indonesia, Malaysia, and Singapore
Partnership concept
PROMOTION STRATEGY
58
Raise brand awareness
among shoppers to induce sales
of EZEQUE
Increase sales by 20% in a year’s time
Convert 800 potential
customers into EZEQUE users within a year
Communication goals
59
RECOMMENDATION STATUS IMPROVEME
NTS
CONTINUE -
RECOMMENDED PROMOTIONAL TOOLS
60
RECOMMENDATION STATUS IMPROVEME
NTS
Email Marketing CONTINUE
Giving out trial kits (first
100 subscribers)
RECOMMENDED PROMOTIONAL TOOLS
61
RECOMMENDATION STATUS IMPROVEME
NTS
Word-of-Mouth &
Testimonials
CONTINUE
Incentivise WOM
[Offering discounts
(code, vouchers
etc.)]
RECOMMENDED PROMOTIONAL TOOLS
62
RECOMMENDATION STATUS IMPROVEME
NTS
Search Engine
MarketingCONTINUE
Using Pay-Per-Click
(PPC) Google AdWords
RECOMMENDED PROMOTIONAL TOOLS
63
RECOMMENDATION STATUS IMPROVEME
NTS
CONTINUEInvest in Facebook Adverts
RECOMMENDED PROMOTIONAL TOOLS
64
RECOMMENDATION STATUS IMPROVEME
NTS
INTRODUCE
Create IG account &
engage ‘Influencers’
RECOMMENDED PROMOTIONAL TOOLS
65
RECOMMENDATION STATUS IMPROVEME
NTS
Seasonal Discounts
INTRODUCE
Offer discounts (codes,
vouchers, promo price)
RECOMMENDED PROMOTIONAL TOOLS
66
RECOMMENDATION STATUS IMPROVEME
NTSINTRODUC
EBid for listings
RECOMMENDED PROMOTIONAL TOOLS
67
RECOMMENDATION STATUS IMPROVEME
NTSINTRODUC
EEngage
promotional collaborations
RECOMMENDED PROMOTIONAL TOOLS
68
RECOMMENDATION STATUS IMPROVEME
NTS
INTRODUCE
Give out trial kits,
discounts & brochures
RECOMMENDED PROMOTIONAL TOOLS
69
Marketing Expenses Forecast
70
Promotional Tools Total
Newspaper S$15, 524
Search engine marketing S$ 18,250
Facebook adverts S$ 18, 250
Instagram- Influencer Marketing S$ 1, 200
Trial kits S$ 3, 000
Qoo10 Advertisement S$ 1, 560
Beauty fair S$ 5, 175
Total S$ 62,959
COST & BENEFITS
71
72
Recommendation Distribution through Online Marketplaces (Qoo10)
Suppliers/ Vendor Qoo10
Cost BUDGET = S$ 15,203.52 (2,400 bottles of EZEQUE x (S$ 48.80 + S$ 3.99)
x 12% Commission Payable)
Method of Measurement Number of users who have bought EZEQUE from Qoo10
Benefits
An additional sales channel to market and sell EZEQUE will help to build brand awareness
More than 50,000 sellers registered accounts on the site and an estimated S$ 10,000 is transacted through Qoo10 each month.
Qoo10 has a total of 900,000 users and 8.5 million visits every 6
months Increase the sales of EZEQUE (large customer base). (Demystify Asia, 2015)
Lower cost of distribution
73
CONCLUSION