A business strategy project produced by graduating Singapore Polytechnic Business students - Joelle Lau, Qiu Fang, Xiang De, Cindy and Jia En for their Final Year Project 2016/2017.
1. SEC Lifestyle Pte Ltd
EZEQUE Skin Therapy
BA065Y New Venture
Planning
Prepared by,
GROUP A10
Joelle Lau Zhe-Yi
Tng Qiu Fang
Chan Supasasin
Lee Jia En
Hong Xiang De
2. Project Description
“We will be conducting a market research to measure the awareness of the
product and understand customers’ needs and buying patterns, as well as to
evaluate the feasibility of expansion into larger markets. A marketing plan will
also be created to implement marketing strategies to improve our ability to
retain and grow business with existing customers, as well as to introduce the
product to new and potential customers. Lastly, we will build a cost-and-
benefit analysis to identify all of the costs associated with this business to
ensure it remains on budget.”
2
3. Business Description
“SEC Lifestyle manufactures skin therapy product, EZEQUE – a non-steroidal
and botanceutical formulation to people who have eczema and for the daily
care of dry, itchy and sensitive skin through online stores and Unity
Pharmacy Stores island wide. It consists of a 2-step application in the form
of mist and cream. EZEQUE provides quick and long-lasting itch-relief while
strengthening the skin barrier, and locks-in hydration in the skin. Therefore,
customers will be able to treat eczema, relieve itchiness and soothe their
skin to achieve maximum daily comfort.”
3
5. Social - Favourable
Consumer buying behaviour - Online Shopping
• 26% of Singaporeans shop online at least once a week and 58%
purchase online at least once a month.
• Singapore Government have expected Singaporeans to spend more of
their disposable income online by 2020 due to the rise in technology
savvy consumers.
SEC Lifestyle offers both online-to-offline commerce.
Source : Go-Globe, 2016
5
6. Technology – Favourable
Consumer buying trends - Shopping online due to technology
development
• Businesses are now actively implementing e-commerce as a form of connecting
with stakeholders through online websites and mobile application.
• According to Statista, the revenue for food, cosmetics and pharmaceuticals e-
commerce market in Singapore has increased from S$401.36m in 2014 to
S$524.81m in 2015.
SEC Lifestyle has an existing online platform and can take advantage of the
rising e-commerce trend.
Source: Statista, 2016 6
7. Environment - Unfavourable
Product Packaging - Singapore Packaging Agreement
• Many consumers often throw out the packaging after used only once or
not used at all.
• Unnecessary packaging – boxes, casings, plastic wraps, foam wraps
• Singapore Packaging Agreement - voluntary agreement for companies to
commit in reducing packaging waste.
• 175 signatories
• Reduced over 26,000 tonnes of packaging wastes
• Saved more than S$58 million
Packaging of EZEQUE is made of plastic bottles and has unnecessary
packaging (i.e. boxes). SEC Lifestyle is not under the list of signatories for
the SPA.
Source: Ministry of the Environment & Water Resources, 2016
7
9. Wholesale &
Retail
Retail Pharmaceutical
Beauty &
Personal Care
Skincare
9
• Singapore’s skincare industry has grown by 3% from 2014 to 2015 and its
value is now at S$563 million.
• Operating receipts (2015)
• Skin care industry is at S$564.9 million
• Body care products is at S$15.7 million
Industry Size
Source : Passport, 2016
11. Key Success Factors
Strong research and development base
Infrastructure, Global Connectivity and Skilled Manpower
Marketing Strategy
Understanding Customers’ Needs
11Source: Singapore Economic Development Board (EDB), 2016
14. Research Methodology
• Quantitative Survey
• Personal Interview
• Quota Sampling
• Total Planned
400 respondents
• Total Actual
438 respondents
14
Age group
Planned Actual
Eczema Prevention Eczema Prevention
24 years old and
below
20 40 29 74
25 to 34 years old 60 50 56 54
35 to 44 years old 60 50 56 46
45 to 54 years old 40 40 38 38
55 years old and
above
20 20 29 18
TOTAL 200 200 208 230
16. A total of 230 respondents DO NOT have issue with
dry, itchy skin or eczema were interviewed.
16
17. Profile of Respondents
Q17. Gender
Q18. Age Group
Q19. Marital Status
Q20. Occupation
Q21. Monthly Personal Income/ Allowance
53%47%
Gender
Male Female
17
41%
18%
17%
8%
5%
4%
3%
4%
Income Level
Below S$1,000 S$2,000 to S$2,999 S$3,000 to S$3,999
S$4,000 to S$4,999 S$1,000 to S$1,999 S$5,000 to S$5,999
S$6,000 to S$6,999 Above S$8,000 S$7,000 to S$7,999
18. Awareness & Usage of Brands
No
26%
Yes
74%
Q2. Have you used any skincare
products/moisturisers to prevent dry,
cracked skin before? • Three quarters of the
interviewees have used
skincare products or
moisturizer.
• Concerned about their
own skin condition.
• Advantage for SEC
Lifestyle.
18
19. Awareness & Usage of Brands
75
27
22 21
11 10
2
43
0
10
20
30
40
50
60
70
80
Cetaphil Physiogel Eucerin QV California Baby Aveeno EZEQUE Others
Q3. If yes, which of the following brands
have you used? (You may tick more than
one option)
Johnson Baby,
Vaseline and
Rosken
19
20. Types of Product Used
7
13
19
26
41
50
73
0 10 20 30 40 50 60 70 80
Other
Itch relief
Sunblock/Sunscreen
Repair cream
Body wash
Facial cleanser
Moisturiser
Q4. What type of product(s) are you using from the
above mentioned brand in Question 3? (You may tick
more than one option)
20
21. Awareness of EZEQUE Skin Therapy
Yes
4%
No
96%
Q5. Have you heard of EZEQUE Skin Therapy?
21
22. Awareness of EZEQUE Skin Therapy
Family and friends
40%
Social media
10%
Newspaper /
Magazines
30%
Retail Stores (Unity
Pharmacies /
Takashimaya)
20%
Q6. If yes, where have you seen or heard about EZEQUE?
Base : EZEQUE users
(10 respondents)
22
23. Reasons for unwillingness to try:
• Brand is unfamiliar.
• Does not show concern/ does
not find the need to use.
• Feels like it is a waste of money.
• Sensitive skin issues.
Usage of EZEQUE Skin Therapy
Q8. If no, why?
Yes
53%
No
47%
Q7. Would you use EZEQUE if it can
prevent dry, cracked, itchy and scaling
skin?
23
24. 0
20
40
60
80
100
120
140
BRAND PRICE QUALITY AVAILABILITY EASY TO USE
Factors Influencing Purchasing Behaviour
Q9. Please indicate the level of importance when purchasing dry skin preventive products for each of the following factors.
(Rank in order of importance with “1” being the most important, and “5” being the least important.)
73
56
33
24
25. 0
20
40
60
80
100
120
140
BRAND PRICE QUALITY AVAILABILITY EASY TO USE
Factors Influencing Purchasing Behaviour
84
25Q9. Please indicate the level of importance when purchasing dry skin preventive products for each of the following factors.
(Rank in order of importance with “1” being the most important, and “5” being the least important.)
26. 0
20
40
60
80
100
120
140
BRAND PRICE QUALITY AVAILABILITY EASY TO USE
13
Factors Influencing Purchasing Behaviour
131
26Q9. Please indicate the level of importance when purchasing dry skin preventive products for each of the following factors.
(Rank in order of importance with “1” being the most important, and “5” being the least important.)
27. 0
20
40
60
80
100
120
140
BRAND PRICE QUALITY AVAILABILITY EASY TO USE
91
Factors Influencing Purchasing Behaviour
27Q9. Please indicate the level of importance when purchasing dry skin preventive products for each of the following factors.
(Rank in order of importance with “1” being the most important, and “5” being the least important.)
28. 0
20
40
60
80
100
120
140
BRAND PRICE QUALITY AVAILABILITY EASY TO USE
68
15
Factors Influencing Purchasing Behaviour
28Q9. Please indicate the level of importance when purchasing dry skin preventive products for each of the following factors.
(Rank in order of importance with “1” being the most important, and “5” being the least important.)
29. Type of Ingredients No. of Responses
Natural 211
Non-comedogenic
(prevent blockage of pores)
74
Oil-free 65
Alcohol-free 64
Dye-free 54
Petroleum-free 37
Others 3
Q10. Which of the following ingredients would make you more likely to purchase a dry skin preventive product?
(You may tick more than one option)
Type of Ingredients Influencing Purchase of Dry Skin
Preventive Product
29
30. Q11. How do you usually get information/learn about a dry skin preventive product? (You may tick more than one option)
Information Sourcing of Dry Skin Preventive Product
15
36
40
52
53
57
64
109
165
0 20 40 60 80 100 120 140 160 180
Radio
Official website
Newspaper
Television
In Retail Stores
Online Search
Social media
Doctor/Dermatologist
Word of Mouth
• Similar results to the
eczema interview for top
two ways
• May not be able to reach
out to many consumers
since people these days do
not read Newspaper
• Work with Clinics or
National Skin Centre
30
31. Q12. Where do you usually buy your dry skin preventive product? (You may tick more than one option)
Place of Purchase for Dry Skin Preventive Products
145 144
87
60
23
15
10
0
20
40
60
80
100
120
140
160
Guardian Watson Medical clinics Unity Online stores Official website Other
• Similar results to the
eczema interview for top
three places
• Many do not browse
through and purchase
products from Unity
• Venture into Guardian or
Watson to gain a larger
customer base
• Others: NTUC Fairprice
and Official retail stores
31
32. Q13. What will cause you to try out a new dry skin preventive product? (You may tick more than one option)
Factors Influencing Trying of New Dry Skin Preventive
Products
183
73
60
52 51
0
20
40
60
80
100
120
140
160
180
200
Family / Friends Promotions Advertisement Price Brand
32
33. Maximum Amount Willing to Spend
37%
42%
11%
3%
2%
5%
Q14. What is the maximum amount you are willing to spend on dry
skin preventive products?
S$20
S$40
S$60
S$80
S$100
More than S$100
33
34. Maximum Amount Willing to Spend
58%25%
11%
6%
Q15. What is the maximum amount you are willing to spend on a
50ml mist and 50ml cream?
S$30
S$40
S$50
More than S$50
34
35. Promotions that Attract Consumers
Q16. What kind of promotion will
most entice you when purchasing
dry skin preventive products? (Tick
only ONE option)71
66
48
38
7
0
10
20
30
40
50
60
70
80
Cash discounts Product/Sample
giveaway
One-for-One Bundle pricings Others
35
42. CURRENT POSITION – VARIETY & TYPE OF
RETAILING
Store-based
retailing
Narrow Variety
Broad Variety
Online
retailing
43. RECOMMENDED POSITION – VARIETY & TYPE OF
RETAILING
Store-based
retailing
Narrow Variety
Broad Variety
Online
retailing
44. MARKETING OBJECTIVES
To launch EZEQUE’s new
packaging by December
2017
To increase sales by 20%
by the end of 2017
To venture into online
marketplaces by the first
quarter of 2017
To generate S$2.00
increase in sales for every
S$1.00 spent on marketing
and communication
campaigns
To reach 5,000 likes on the
SEC Lifestyle Facebook
page and at least 1,000
followers on SEC Lifestyle’s
Instagram within a year
44
45. Marketing Mix Acronym - RELIEVE
45
Valuable
(Pricing)
E-
commerce
(Placing &
Promotion)
Low
Distribution
Cost
(Placing)
Effective
(Product
& Promotion)
Internet
Marketing
(Promotion)
Reachable
(Placing)
Easy to
Use
(Product)
R E L I E EV
51. Pricing Objectives
51
Profit Maximization (Planned distribution cost, COGS & other expenses)1
Increase brand image and reputation in the market2
To be priced competitively in the market3
52. Recommended pricing strategy
52
Cost-Plus Pricing
Venture into online
marketplaces
Lower distribution
cost
Higher profit
margin
Value-Based
Pricing
New packaging design &
natural ingredients
formulation
Raise the perceived
value of product
Promotional
Pricing
Seasonal discounts
Bundle discounts –
buy 4 bottles free 1
55. Online marketplace - Qoo10
55
Product Offerings All rounded
User base 900, 000 users
Locations
Japan, China, Hong Kong,
Indonesia, Malaysia, and
Singapore
• Registration
• Product listingOnline storefront
Total Transaction Amount =
Selling Price + Optional Fee + Shipping Fee
• Depends on Seller
Grade & Item Price
• Ranging from 7% to
12% of total
transaction amount
1. Seller coupons
2. Group buy
3. Bidding promotions –
Placements
56. Online marketplace - lazada
56
Product Offerings All rounded
Locations
Malaysia, Indonesia, Thailand,
Singapore, Philippines and
Vietnam
• Registration
• Product listingOnline storefront
Note: Must be a registered business in Singapore
• 8% commission for
health & beauty
products.
• Paid only when items
are sold
1. Lazada Affliate Program
2. Seller Incentive Program
3. Lazada Promotion Tool
(subjected to approval)
57. Online PLATFORM – HERMO SG
57
• Hermo will be
purchasing the
products to sell.
• T&C are subjected to
both parties’
agreement.
1. Seasonal offers & discounts
(subjected to agreements)
2. Registered customers receive
vouchers occasionally
Product Offerings Beauty & Wellness
User base 200, 000 users
Locations
Indonesia, Malaysia, and
Singapore
Partnership concept
59. Raise brand
awareness
among shoppers
to induce sales
of EZEQUE
Increase sales
by 20% in a
year’s time
Convert 800
potential
customers into
EZEQUE users
within a year
Communication goals
59
72. 72
Recommendation Distribution through Online Marketplaces (Qoo10)
Suppliers/ Vendor Qoo10
Cost
BUDGET = S$ 15,203.52 (2,400 bottles of EZEQUE x (S$ 48.80 + S$ 3.99)
x 12% Commission Payable)
Method of Measurement Number of users who have bought EZEQUE from Qoo10
Benefits
An additional sales channel to market and sell EZEQUE will help
to build brand awareness
More than 50,000 sellers registered accounts on the site and an
estimated S$ 10,000 is transacted through Qoo10 each month.
Qoo10 has a total of 900,000 users and 8.5 million visits every 6
months Increase the sales of EZEQUE (large customer base).
(Demystify Asia, 2015)
Lower cost of distribution
To start off, these are the profile of our respondents. 53% of them are male while the rest are females. For income level, about a quarter of them are earning less than S$4000 per month.
Awareness and usage of brands. About 3 quarters of the respondents have used skincare products or moisturisers, showing that they are highly concerned about their own skin condition.
And if yes, which of the following brands have they used? The top brand came up to be cetaphil, follow by physiogel, eucerin and Qv.
Q4 what types of products are they using from the above mentioned brand in question 3. the top three products are moisturizer, facial cleanser and body wash. While itch relief is the one of the top three product for eczema interview, in the preventive interview it is not much of a concern to these respondents since they do not have dry skin or eczema.
Moving on to q5, have they heard of ezeque, and 4% of them have mentioned yes and this 4% refers to 10 of our respondents.
Out of these 10 respondents, 40% have heard from family and friends, 10% from social media, 30% from newspaper or magazines and 20% from retail stores.
In q7, we have asked them if they would they used EZEQUE if it can prevent dry, cracked, itchy or scaling skin and more than half of our respondents said yes. While those that say no stated their reasons as to unfamiliar brand, does not feel that there is a need for them to use, waste of money and sensitive skin.
Moreover, factors influencing purchasing behaviour.
Respondents are to indicate the level of importance when purchasing dry skin preventive products for each of the following factors. (Rank in order of importance with “1” being the most important, and “5” being the least important.)
Please indicate the level of importance when purchasing dry skin preventive products for each of the following factors. (Rank in order of importance with “1” being the most important, and “5” being the least important.)
Please indicate the level of importance when purchasing dry skin preventive products for each of the following factors. (Rank in order of importance with “1” being the most important, and “5” being the least important.)
Please indicate the level of importance when purchasing dry skin preventive products for each of the following factors. (Rank in order of importance with “1” being the most important, and “5” being the least important.)
Please indicate the level of importance when purchasing dry skin preventive products for each of the following factors. (Rank in order of importance with “1” being the most important, and “5” being the least important.)
Type of ingredients influencing purchase of dry skin preventive product. From our survey, we have collected a total of 211 responses who have selected natural ingredients are their most preferred ingredient which would caused them to try out dry skin preventive product.
Similar results to the eczema interview
Mentioned that products are made from natural ingredients at the front of the packaging
Others: Coconut oil and Scent-free
In addition, in q11, we have asked them where do they usually obtained information about a dry skin preventive product. The top two ways are through word of mouth and doctor or dermatologist. With SEC Lifestyle promoting ezeque in newspaper, they may not be able to reach out to a larger customer base.
Q12. where do they usually purchase their dry skin preventive product. The top three place are guardian, Watson and medical clinics. on the other hand ezeque is only available in unity out of all the options, thus we feel that Sec lifestyle may venture into guardian or Watson in future.
Factors influencing trying of new dry skin preventive products. There were 5 options for them to choose from family or friends, promotions, advertisement, price and brand. The top most influencing factor is through family or friends.
In q14, what is their maximum amount they are willing to spend on dry skin preventive products. 42% stated a max of $40 and 37% stated a max of $20.
In addition, we have also asked them the maximum amount they are willing to spend on a 50ml mist and 50ml cream and more than half have stated maximum of $30. With Sec lifestyle selling ezeque at $48.80, this price may not be favourable to most of our resondents.
Last but not least, the promotions that attract consumers. There were a total of four options, cash discounts, product giveaway, one for one, bundle pricings, the top most preferred promotion is cash discounts.
With that, we hope our findings and market research are beneficial to your company. Thank you.
This annual mkt potential is conservative coz one user may not only buy the roducts once a year
Incentivize
-
Assumptions made when calculating the budget:
SEC Lifestyle sells 10,000 bottles of EZEQUE every year.
The forecasted growth in 2017 is 20%, so the total number of bottles of EZEQUE sold will be 10,000 x 120% = 12,000 bottles
There are a total of 5 distribution channels (Takashimaya, Qoo10, Lazada, Hermo Singapore and SEC Online store) and all the channels sell equal number of EZEQUE in 2017.
The number of EZEQUE sold through Qoo10 will be 12,000 ÷ 5 = 2,400 bottles
Commission payable is 12% of the total transaction amount.
No optional fee and discount fee applies.
THANK THEMMMMMMMMM
WE WANT TTO THANK FOR THE OPPO
BASED ON OBJ AND SUBJ OF THE PROJECT
THERE ARE POTEMTIAL FOR EZEQUE BUT THERE ARE A LOT MORE TO BE DONE FOR MKTG AND BRANDING IN THE FUTURE