MMI 3033 DESIGN PROJECT 1
MEDIA INNOVATION
FINAL YEAR PROJECT 1
2009/2010
SITUATION ANALYSIS
Industry: Beauty, Cosmetics & Toiletries
Brand:
Eunice Sulaiman 1061108427
TABLE OF CONTENTS
1.0 PROJECT OVERVIEW
1.1 Problem Statement
1.2 Issues
1.3 Objectives
1.4 Aim
2.0 PRODUCT PROFILE
2.1 Product Classification
2.2 Product Range & Pricing
2.3 Distribution
2.4 Product Life Cycle
2.5 Brand Image & Implication
2.6 Product Packaging
2.7 Strength & Weaknesses
2.8 Advantages & Disadvantages
2.9 Distinctive Features
2.10Unique Selling Proposition (USP)
2.11Positioning Statement
2.12Promotional History
3.0 ABOUT THE COMPANY
3.1 History
3.2 Establishment
3.3 Other brands under this company
3.4 Distribution
3.5 Philosophy
3.6 Mission
3.7 Culture & Values
3.8 Customer Relationship Management
3.9 Market Share
3.10Current Marketing Objective
4.0 CONSUMER & STAKEHOLDERS
4.1 Current Consumer Characteristics
4.2 Stakeholders
5.0 INDUSTRY & MARKETPLACE
5.1 Definition of the Industry
5.2 Development of the Industry
5.3 Shape of the Industry
5.4 Marketplace Analysis
6.0 COMPETITIVE SITUATION
6.1 Direct Competitors
6.2 Indirect Competitors
7.0 SWOT ANALYSIS
7.1 Strength
7.2 Weaknesses
7.3 Opportunities
7.4 Threats
8.0 STRATEGIC TARGET MARKET
8.1 Demographic Background
8.2 Education Attainment and Income Level
8.3 Demographics
8.4 Psychographics
9.0 STRATEGIC MARKETING PLAN
9.1 Current Perception
9.2 Marketing Objectives
9.3 Media Applications
10.0SURVEY ANALYSIS
10.1Online Survey Results
10.2Conclusion
SITUATION ANALYSIS
BRAND: FOLLOW ME
CATEGORY: BEAUTY, COSMETICS & TOILETRIES
1.0 PROJECT OVERVIEW
1.1 Problem Statement
Follow Me was very popular in the 80s and is now perceived as an outdated brand.
1.2 Issues
Follow Me was very popular in the 80s and is now perceived as an outdated brand. The brand image has been the same since the 80’s and probably still only appeals to the older generation. Even the product packaging of a few ranges of products has not changed since 1987. This brand is perceived as being back dated and catering to the older generation.
Many new brands surfacing in the market creates higher level of competition. These new brands appeal more to today’s generation. Besides having more advanced ingredients, they also have a more up to date packaging and brand image. Their advertisements are more relevant in today’s society.
Follow Me is a well established brand but they are not using that plus point to promote their products. There is no consistency in their branding. The brand offers nothing for people to remember them by. No logo, only fonts. No tag line either.
1.3 Objective
To find out the level of awareness of this brand
To study consumers’ perception of the brand
To study the factors that influence consumers’ perception of the brand
1.4 Aim
To change consumers’ perception of the brand by changing the brand image.
2.0 PRODUCT PROFILE
2.1 Product Classification
Brand: Follow Me
Industry: Personal Care
Category: Beauty, Cosmetics & Toiletries
2.2 Product Range & Pricing
| | RETAIL |
| DESCRIPTION | UNIT |
| | RM |
| FOLLOW ME | |
| Happy Hair Range | |
| DEEP MOIST SHAMPOO 750ML | 23.90 |
| STRAIGHT & SILKY SHAMPOO 750ML | 23.90 |
| COOL & HAPPY SCALP SHAMPOO 750ML | 23.90 |
| VOLUME ENVY SHAMPOO 750ML | 23.90 |
| BLOOMING FRESH SHAMPOO 750ML | 23.90 |
| DEEP MOIST SHAMPOO 325ML | 12.90 |
| STRAIGHT & SILKY SHAMPOO 325ML | 12.90 |
| COOL & HAPPY SCALP SHAMPOO 325ML | 12.90 |
| VOLUME ENVY SHAMPOO 325ML | 12.90 |
| BLOOMING FRESH SHAMPOO 325ML | 12.90 |
| DEEP REPAIR CONDITIONER 200ML | 11.90 |
| SCALP CARE CONDITIONER 200ML | 11.90 |
| Shampoo & Conditioner Range | |
| COND 960ML | 15.60 |
| SHP 960ML - EGG | 15.00 |
| SHP 960ML - HERBAL | 15.00 |
| SHP 960ML - P&J | 15.00 |
| SHP 960ML - ICED COOL | 15.60 |
| SHP 960ML - ALOE VERA | 17.00 |
| SHP 960ML - D/CONTROL | 17.50 |
| AV COND 960ML | 17.00 |
| SHP 960ML - 4/1 | 19.00 |
| SHP 480ML - D/CONTROL | 10.20 |
| SHP 480ML - 4/1 | 10.50 |
| SHP 140ML - D/CONTROL | 3.60 |
| SHP 140ML - 4/1 | 3.80 |
| SHP 10ML - 4/1 | 0.40 |
| Green Tea Shampoo & Conditioner | |
| GREEN TEA HAIR VOLUMIZER SHP 750ML | 24.90 |
| GREEN TEA HAIR REVITALIZER SHP 750ML | 24.90 |
| G/TEA GREY CONTROL SHOU WU SHP 750ML | 24.90 |
| GREEN TEA SCALP CARE SHP 750ML | 27.90 |
| GREEN TEA ANTI-DANDRUFF ZPT SHP 750ML | 27.90 |
| GREEN TEA HAIR VOLUMIZER SHP 400ML | 14.60 |
| GREEN TEA HAIR REVITALIZER SHP 400ML | 14.60 |
| G/TEA GREY CONTROL SHOU WU SHP 400ML | 14.60 |
| GREEN TEA SCALP CARE SHP 400ML | 16.50 |
| GREEN TEA ANTI-DANDRUFF ZPT SHP 400ML | 16.50 |
| GREEN TEA HAIR VOLUMIZER SHP 200ML | 8.30 |
| GREEN TEA HAIR REVITALIZER SHP 200ML | 8.30 |
| G/TEA GREY CONTROL SHOU WU SHP 200ML | 8.30 |
| GREEN TEA SCALP CARE SHP 200ML | 9.30 |
| GREEN TEA ANTI-DANDRUFF ZPT SHP 200ML | 9.30 |
| GREEN TEA HAIR REVITALIZER SHP 110ML | 5.30 |
| GREEN TEA SCALP CARE SHP 110ML | 5.30 |
| G/TEA GREY CONTROL SHOU WU SHP 110ML | 5.30 |
| GREEN TEA SCALP CARE SHP 10ML | 0.40 |
| GREEN TEA HYDRATING CONDITIONER 750ML | 24.90 |
| GREEN TEA HYDRATING CONDITIONER 400ML | 14.60 |
| GREEN TEA HYDRATING CONDITIONER 200ML | 8.30 |
| Other Shampoo | |
| TREATMENT SHP 800ML - GREY | 24.00 |
| SCALP CARE T'MENT SHP 720ML | 25.00 |
| COOL MEDICATED SHP 800ML | 27.90 |
| COOL MEDICATED SHP 200ML | 9.30 |
| Hair Styling | |
| SUPER HARD GEL 160GM - BLUE | 6.30 |
| SUPER HARD GEL 160GM - PURPLE | 6.30 |
| SUPER HARD GEL 160GM - GREEN | 6.30 |
| SUPER HARD GEL 320GM - BLUE | 10.60 |
| SUPER HARD GEL 320GM - PURPLE | 10.60 |
| SUPER HARD GEL 320GM - GREEN | 10.60 |
| WET LOOK HAIR GEL 150GM | 7.70 |
| WET LOOK HAIR GEL 100GM | 5.60 |
| PREMIUM STYLING GEL 200GM | 8.30 |
| ENGINEERED CLAY 50GM | 14.90 |
| STYLING MOUSSE with JOJOBA & A/V 180ML | 11.90 |
| HAIR SPRAY 240ML | 12.80 |
| S/HOLD HAIR SPRAY with CONDITIONER 240ML | 11.90 |
| HAIR CREAM 100GM | 5.50 |
| HAIR CREAM (E/H) 100GM | 5.50 |
| HAIR CREAM 150GM | 7.30 |
| HAIR CREAM (E/H) 200GM | 9.50 |
| GREY CONTROL 100GM | 7.90 |
| GREY CONTROL 200GM | 13.90 |
| LADY'S CHOICE H/D CREAM 100GM | 6.50 |
| OLIVE OIL WITH CELLAGEN E 160ML | 7.90 |
| 100% OLIVE OIL 160ML | 10.90 |
| Hair Colour | |
| PERMANENT HAIR DYE - 01 NATURAL BLACK | 9.00 |
| N/C HAIR COLOR - 01 BLACK | 21.90 |
| N/C HAIR COLOR - 03 DARK BROWN | 21.90 |
| N/C HAIR COLOR - 05 LIGHT BROWN | 21.90 |
| N/C HAIR COLOR - 08 MAHOGANY | 21.90 |
| N/C HAIR COLOR - 09 BURGUNDY | 21.90 |
| N/C HAIR COLOR - 07 CHESTNUT BROWN | 21.90 |
| N/C HAIR COLOR - 12 AUBURN RED BLONDE | 21.90 |
| N/C HAIR COLOR - 10 HENNA RED | 21.90 |
| N/C HAIR COLOR - 15 MED GOLDEN BLONDE | 21.90 |
| N/C HAIR COLOR - 16 LIGHT COPPER G/B | 21.90 |
| N/C HAIR COLOR - 17 DARK INTENSE RED BLO | 21.90 |
| N/C HAIR COLOR - 18 MED INTENSE R/BLONDE | 21.90 |
| Nature's Path Shower Foam | |
| N/P AROMA BOTANICAL S/FOAM 725ML | 13.90 |
| N/P FIRMING TREATMENT S/FOAM 725ML | 13.90 |
| N/P FRUIT FUSION SHOWER FOAM 725ML | 13.90 |
| N/P PETAL & SEED SPA S/FOAM 725ML | 13.90 |
| N/P UV WHITE SHOWER FOAM 725ML | 13.90 |
| N/P WHOLESOME ORGANIC S/FOAM 725ML | 13.90 |
| N/P UV WHITE SOAP BAR 100GM | 2.80 |
| Other Body Care | |
| BODY CREAM 150GM | 9.80 |
| UV WHITENING HAND & BODY LOTION 400ML | 15.90 |
| LIQUID HANDWASH 500ML - FRUIT | 7.50 |
| LIQUID HANDWASH 500ML (REFILL) | 6.50 |
| LIQUID HANDWASH 500ML-PEACH SENSATION | 7.50 |
| HYGIENIC CLEANSER 200ML | 13.20 |
| PERFUMED STICK 33G - PURPLE | 4.00 |
| PERFUMED STICK 33G - BLUE | 4.00 |
| PERFUMED STICK 33G - PINK | 4.00 |
| A/V PERFUMED STICK 33G | 4.40 |
| ROLL ON 60ML - PURPLE | 6.20 |
| ROLL ON 60ML - BLUE | 6.20 |
| ROLL ON 60ML - GREEN | 6.20 |
| NO 1 ANTIPERSPIRANT DEO. 60ML - PP | 7.30 |
| COOL FRESH DEODORANT 60ML | 7.30 |
| UV WHITE DEODORANT 60ML | 7.30 |
| ACTIVE SPORT DEODORANT 60ML | 7.30 |
| COOL TALC 160GM | 5.80 |
| NO 1 A/P DEODORANT POWDER 50GM | 4.50 |
| NO 1 A/P DEODORANT POWDER 100GM | 8.60 |
| 3 IN 1 FOOT POWDER 100GM | 9.90 |
| FACIAL COTTON 100PCS | 3.50 |
| FACIAL COTTON 160PCS | 5.00 |
| Sence Range | |
| SENCE MOIST. WH LOTION 300ML - ROMANTIC | 10.50 |
| SENCE MOIST. WH LOTION 300ML - JOYFUL | 10.50 |
| SENCE MOIST. WH LOTION 300ML - HAPPY | 10.50 |
| SENCE MOIST. WH LOTION 300ML - LOVELY | 10.50 |
| SENCE DEODORANT 40ML - LOVELY | 5.90 |
| SENCE DEODORANT 40ML - JOYFUL | 5.90 |
| SENCE DEODORANT 40ML - ROMANTIC | 5.90 |
| SENCE DEODORANT 40ML - HAPPY | 5.90 |
| SENCE TALCUM 128GM - ROMANTIC | 5.90 |
| SENCE TALCUM 128GM - JOYFUL | 5.90 |
| SENCE TALCUM 128GM - LOVELY | 5.90 |
| SENCE TALCUM 128GM - HAPPY | 5.90 |
| SENCE EAU DE PARFUM 50ML - ROMANTIC | 24.90 |
| SENCE EAU DE PARFUM 50ML - JOYFUL | 24.90 |
| SENCE EAU DE PARFUM 50ML - HAPPY | 24.90 |
| SENCE EAU DE PARFUM 50ML - LOVELY | 24.90 |
| SENCE BODY SPRAY 75ML - HAPPY | 7.20 |
| SENCE BODY SPRAY 75ML - LOVELY | 7.20 |
| SENCE BODY SPRAY 75ML - JOYFUL | 7.20 |
| SENCE BODY SPRAY 75ML - ROMANTIC | 7.20 |
| Oil Control Cleanser Range | |
| OIL CONTROL STARTER KIT (Cl,Toner,Moist,PG) | 14.90 |
| OIL CONTROL ANTI-SHINE CLEANSER 100ML | 9.90 |
| OIL CONTROL P/BLACKHEAD REMOVER 30ML | 13.90 |
| OIL CONTROL PIMPLE GEL 15ML | 14.90 |
| OIL CONTROL MULTI-PURIFYING TONER 150ML | 12.90 |
| OIL CONTROL MATTIFYING MOISTURIZER 30ML | 8.90 |
| Cleanser | |
| SUPER MILD FACIAL WASH 100GM | 9.30 |
| SUPER MILD FACIAL WASH 200GM | 14.90 |
| ANTI-AGE FIRMING FACIAL CLEANSER 100G | 10.90 |
| ANTI-AGE FIRMING FACIAL CLEANSER 200G | 16.90 |
| KIWI WHITE SCRUB CLEANSER 100GM | 10.90 |
| COOLING DE-ACNE FCIAL CLEANSER 100GM | 10.90 |
| KIWI WHITE FACIAL CLEANSER 100GM | 10.90 |
| CLEANSER WITH KIWI & AHA 50GM | 7.30 |
| CLEANSER WITH KIWI & AHA 200GM (free 25%) | 20.40 |
| Cosmetic | |
| COMPACT 10G - 101 | 7.30 |
| COMPACT 10G - 202 | 7.30 |
| COMPACT 10G - 303 | 7.30 |
| COMPACT 16G - 1 | 5.90 |
| COMPACT 16G - 2 | 5.90 |
| COMPACT 16G - 3 | 5.90 |
| COMPACT 10G - 111 | 9.00 |
| COMPACT 10G - 222 | 9.00 |
| 2 WAY CAKE 12.1GM (401) | 38.00 |
| 2 WAY CAKE 12.1GM (402) | 38.00 |
| 2 WAY CAKE 12.1GM (403) | 38.00 |
| 2 WAY CAKE REFILL 12.1GM (401) | 26.50 |
| 2 WAY CAKE REFILL 12.1GM (402) | 26.50 |
| 2 WAY CAKE REFILL 12.1GM (403) | 26.50 |
| S/L W'PROOF MASCARA 10G - BLUE FMM002 | 19.50 |
| S/L W'PROOF MASCARA 10G - BLACK FMM001 | 19.50 |
| EYELINER PENCIL - BLACK CP510 | 6.90 |
| BROW LINER -ESPRESSO EP410 | 6.90 |
| LIPLINER - COCOA CLP310 | 6.90 |
| LIPLINER - BERRY CLP311 | 6.90 |
| LIPLINER - GARNET CLP313 | 6.90 |
| LIPLINER - BORDEAUX CLP315 | 6.90 |
| LONG LASTING LIPSTICK - SALMON JM335 | 19.90 |
| LONG LASTING LIPSTICK - BERRY JM336 | 19.90 |
| L/LASTING LIPSTICK - ROSE PASSION JM340 | 19.90 |
| L/LASTING LIPSTICK - SUNBURST JM341 | 19.90 |
| L/LASTING LIPSTICK - ICE PINK JM342 | 19.90 |
| L/LASTING LIPSTICK - PINK KISS JM343 | 19.90 |
| VANITY LIPSTICK - PINKISH RED IV101 | 15.90 |
| VANITY LIPSTICK - CHERRY RED IV102 | 15.90 |
| VANITY LIPSTICK - MAROON IV103 | 15.90 |
| VANITY LIPSTICK - RED IV104 | 15.90 |
| VANITY LIPSTICK - BROWNIE RED IV105 | 15.90 |
| VANITY LIPSTICK - BRIGHT PINK IV106 | 15.90 |
| VANITY LIPSTICK - LIGHT MAROON IV107 | 15.90 |
| VANITY LIPSTICK - ORANGEY PINK IV108 | 15.90 |
| VANITY LIPSTICK - LIGHT PINK IV109 | 15.90 |
| VANITY LIPSTICK - ORANGE IV110 | 15.90 |
| VANITY LIPSTICK - DARK BROWN IV112 | 15.90 |
| VANITY LIPSTICK - LIGHT BROWN IV111 | 15.90 |
| VANITY LIPSTICK - SOFT CHAM ORANGE IV16 | 15.90 |
| VANITY LIPSTICK - SOFT CHAM VOGUE IV17 | 15.90 |
| Men Range | |
| MEN SHP 260ML | 6.10 |
| MEN SHP 140ML | 3.60 |
| MEN PERFUMED STICK 33G | 4.40 |
| ROLL ON 60ML - MEN | 6.60 |
| MEN TALC 150GM - BLACK | 5.80 |
| MEN TALC 160GM - BLACK | 5.80 |
| MEN TALC 160GM - RED | 5.80 |
| MEN TALC 50GM - BLACK | 2.30 |
| MEN TALC CLASSIC 150GM | 6.00 |
| MEN PERFUME 30ML - SILVER | 12.90 |
| MEN PERFUME 30ML - GOLD | 12.90 |
| MEN PERFUME 50ML - GOLD | 17.20 |
| MEN PERFUME 50ML - SILVER | 17.20 |
| AFTER SHAVE 125ML | 17.50 |
| MEN'S B/SPRAY 75ML - YELLOW | 6.30 |
| MEN'S B/SPRAY 75ML - RED | 6.30 |
| MEN'S B/SPRAY 75ML - WHITE | 6.30 |
| MEN GEL 120GM | 5.60 |
| MEN GEL 200GM | 9.50 |
| MEN HAIR CREAM 120ML | 6.40 |
| MEN HAIR CREAM 240ML | 9.70 |
| MEN HAIR CREAM STRONG HOLD 120ML | 7.40 |
| PREMIUM HAIR CREAM 200GM | 10.50 |
| HAIR LIQUID 220ML | 8.90 |
| MEN H/SPRAY 180ML | 9.60 |
| Baby & Kits Range | |
| BABY POWDER 500GM | 7.90 |
| KIDS SHAMPOO + BATH 800ML | 17.90 |
| KIDS SHAMPOO + BATH 400ML | 9.90 |
| KIDS SHAMPOO 800ML | 17.90 |
| KIDS HEAD 2 TOE SHP 750ML - BERRY BLAST | 17.90 |
| KIDS HEAD 2 TOE SHP 750ML-APPLE SWEETIE | 17.90 |
| BABY SHAMPOO 800ML | 17.90 |
| BABY BATH 800ML | 17.90 |
| BABY LOTION 500ML | 12.90 |
| BABY OIL 150ML | 8.90 |
| COTTON BUDS 200 TIPS | 1.50 |
| COTTON BUDS 400 TIPS | 3.30 |
| COTTON WOOL (ROLL) 50G | 1.90 |
| COTTON WOOL (ROLL) 300G | 5.90 |
2.3 Distribution
Follow Me products are distributed throughout South East Asia. However, in Malaysia, the products are available at most super markets and hyper markets, convenient stores, Drug Stores and Proprietary Stores, in both rural and sub-urban areas.
2.4 Product Life Cycle
2.5 Brand Image & Implication
Follow Me has progressed from a home grown name into a multinational brand. Its products are benchmarked against international standards that bring them into close competition with other established international brands. That’s why you can always find Follow Me products on shelves all over South East Asia
2.6 Product Packaging
The packaging varies throughout the wide range of products. There are different colour scheme and packaging design for each range of product. There is no consistency or specific identity in the branding. The packaging of some of the products still remains the same since it was last launched in 1987.
Packaging that has never changed since the launch of the product about 20 years ago.
Packaging of other range of products
2.7 Strength & Weaknesses
Strength
Well established company
More than 30 years of research & development in personal care products
Locally manufactured
Distributed to most convenient stores & available at every supermarket and hypermarket
Wide range of products
Malaysian made product hence no import tax
Weaknesses
Was very popular in the 80’s however gradually became less popular among the younger generation
Doesn’t have a specific product that they are well known for
Target market too wide
No strategic marketing
Brand image hasn’t changed since it came out
Consumers don’t trust local brands as much
2.8 Advantages & Disadvantages
Advantages
Trusted by consumers
Experienced in manufacturing of personal care products
Reduced cost (locally manufactured and distributed)
Easily accessible for consumers
Consumers are familiar with the product
Consumers can have most of their need of personal care products met by this one brand that they trust.
Can afford to offer products at a very low price without compromising the quality
Disadvantages
People perceive the brand as out-dated or old, catering for the older generation.
Because price of products are very economical, consumers tend to doubt the quality
Many new brands are emerging in the market, increasing level of competition
Many consumers prefer not to choose a local brand when they can get an imported brand for the same cost
Consumers don’t notice the new range of products manufactured by this brand.
2.9 Distinctive Features
For more than 45 years, the company has proved itself as a successful Malaysian owned company that is renowned for developing, producing and distributing local quality consumer products to every family in Malaysia and beyond.
Its products are benchmarked against international standards that bring them into close competition with other established international brands.
2.10 Unique Selling Proposition (USP)
Follow Me is a well established brand that has been in the market since 1987. They offer a complete range of personal care products that suit the needs of every family and individual. Products manufactured locally, are sold at a low price without compromising its quality.
2.11 Positioning Statement
Follow Me markets a complete range of value for money personal care and household products that cater to the needs of Malaysia’s general population.
2.12 Promotional History
Print ads:
Follow Me Green Tea Shampoo advertisement at a bus stop in Pulau TIkus, Penang
Follow Me Happy Shampoo advertisement on a billboard in Gurney Drive, Penang
Online ads:
Follow Me Happy Shampoo advertisement as a website banner.
Oil Control range advertisement as a website banner.
Online contest:
TV commercial:
Happy Shampoo TVC
Green Tea Shampoo TVC
Website:
Road shows:
Follow Me Oil Control road show in Klang Valley 21st031st July 2009
3.0 ABOUT THE COMPANY
3.1 History
Tohtonku Trading Co. was founded in Penang in 1964 by the late Mr. Lim Joi Him. The company started up with door-to-door sales by groups of promoters selling Tohtonku products.
1978, the company was renamed as Tohtonku Sdn. Bhd.
Follow Me launched its first hair care range in 1987
As the business volumes grew, the management decided to build a manufacturing plant in Penang. The plant was built to produce and pack all Tohtonku’s finished products as it is more economical and also in line to promote Malaysian made products. The connotation of the name Follow Me is quality at affordable prices, invoking enthusiasm and consumer loyalty.
As the consumer demand for Follow Me products continued to increase, Tohtonku ventured into the rest of the nation. The Kuala Lumpur office was set up in 2003 to accommodate the marketing and sales team. Tohtonku expanded their business venture further to East Malaysia
3.2 Establishment
For more than 45 years, Tohtonku has proved itself as a successful Malaysian owned company that is renowned for developing, producing and distributing local quality consumer products to every man and woman in Malaysia and beyond.
Today, Tohtonku markets a complete range of personal care and household products that cater to the needs of Malaysia’s general population.
3.3 Other brands under this company:
Follow Me
Nutox
Oxyfusion
Nanowhite
Secret
Uberman
A’laisyah
Can Can
Everyday
Koolfever
Ammeltz
Sawadav
Saniplast
Seriogan
Breathpop
ARS
You&Me
Rainna
King Kong
3.4 Distribution
The products are distributed in countries throughout South East Asia in the following countries:
Japan
Hong Kong
Singapore
Thailand
Indonesia
Myanmar
Brunei
Pakistan
Sri Lanka
3.5 Philosophy
People are at the centre of Tohtonku’s business and people are the key to the company achieving its dream. Tohtonku began with a dream to make every man and woman looking good and feeling confidence of who they are. Hence, our products are ever changing to meet every consumers demand.
3.6 Mission
To conquer the South East Asian market and emerge as the region’s most popular shoppers’ choice in the coming years. Tohtonku will be at the forefront of product development with a range of great products being developed for the marketplace in years to come.
3.7 Culture & Values
Tohtonku Sdn Bhd established in 1964 with a dream to grow into a multinational corporation that enhances people, not just products. Tohtonku focuses on the needs of the customers and play on the strengths of the management team and its workforce ensure satisfaction in all consumers of their products.
3.8 Customer Relationship Management
Follow Me promoters are allocated at most supermarkets and hypermarkets to assist customers, to explain about their products and help customers make a choice on a product that suits them the best.
At their website there is also a section where people can give feedback or comments. They respond within 24 hours.
Print screen of correspondence section in the website.
3.9 Market Share
The market share within the industry stood at 1.4% in 2005 (Refer to Table 5.2). This was higher than market share of Dove (1.2%), Rejoice (1.2%) and Sunsilk (1.1%). However, in 2008, market share of Follow Me’ was dropped substantially and other brands, such as Rejoice and Sunsilk surpassed Follow Me within the industry.
Top 20 Cosmetics/Personal Care Products, 2002-2005
In the table above we can see that Follow Me had its golden years in 2004-2005 before declining significantly. This may be due to more aggressive marketing and better promotion of products done by its competitors such as Sunsilk brand (produced by Unilever M Holdings Sdn Bhd) and Rejoice (produce by Procter & gamble M Sdn Bhd).
3.10 Current Marketing Objective
The company’s marketing objective is to continue to market and promote the brand among the sub-urban and even the rural area throughout South East Asia by the means of various media. Follow Me will also strive to increase sales to gain market share among their competitors.
4.0 CONSUMER & STAKEHOLDERS
4.1 Current Consumer Characteristics
Demographics
Age: 16-40 years old
Gender: Male & Female
Education: SPM, Diploma to tertiary education and above
Occupation: Student, Employee, Retiree
Income range: RM500-RM2500
Race & Ethnicity: All
Geographic location: sub-urban & rural
Psychographics
Perception: They look for good value for money products that suit their needs.
Learning: Simple consumers who have smaller criteria of choosing products. They buy into advertisements and judge from free samples.
Motivation and needs: They require simple basic products that can serve their needs. They don’t need complicated or high technology products of services.
Attitude: Simple, Contented, Easily Satisfied
Personality: Not fussy or particular, relaxed & carefree
Lifestyle: Laid back & Steady, routine and consistent
4.2 Stakeholders
- Chairman
- General Manager
- Assistant Manager
- Creative Director
- Marketing Executive
- Admin Staff
- Receptionist
- Promotional Manager
- Manager of Training Department
- Promoters
5.0 INDUSTRY & MARKETPLACE
5.1 Definition of the Industry
Personal care or toiletries is the industry which manufacture consumer products used for beautification and in personal hygiene.
Personal care products are generally used for personal health and hygiene. It includes products like body talc, body scrub, tooth paste, tooth brush, powder, bathing salts, bathing gel, essential oils, moisturizer, skin creams, face wash, hair oil, hair shampoo, hair conditioner, soap.
5.2 Development of the Industry
This is a big industry in Malaysia. A large number of international brands are being introduced to the market. The products sold in the market are now way more advanced in meeting the needs of consumers. Products are now available to meet the diverse needs of each individual.
5.3 Shape of the Industry
The personal care product market was a success on all counts in 2005-2006 with good performances from each of the Big 5 markets. However. In recent years, growth in the personal care category is slowing, almost everywhere. Forrester Research projects that between 2008 and 2012 combined sales of personal care products and OTC medicines will grow 91% online.
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.
Men’s grooming products contributed greatly to the growth of cosmetics and toiletries in Malaysia. The growth in men’s grooming products was stimulated by the proliferation of gyms and men’s grooming articles published in men’s magazines. In 2005, men’s grooming products posted 8% growth in current value terms to reach RM 221 million (refer to Table 5.1 below).
This figure is projected to continue to grow to RM 285 million in 2010. Within men’s grooming products, men’s skin care and hair care achieved the greatest growth.
5.4 Marketplace Analysis
The sales of cosmetics and personal care products in Malaysia is very fragmented, split among pharmacies, department stores, supermarkets, hypermarkets, specialist stores, convenience stores, grocery stores, etc. Hypermarkets/ supermarkets have the largest sales value of 29%, followed by department stores with 17.5% and pharmacies or drugstores with 15%. The rests are taken by direct sales, discounters and specialist shops.
As mentioned earlier, hypermarkets and supermarkets throughout the country, such as Tesco, Carrefour and Giant are the main retail outlets in terms of sales. This is because the largest selling products (such as bath and shower, hair care, deodorants and oral hygiene) were to a large extent bought together with other day-to-day commodities. Men tend to buy all of their grooming products in grocery stores, whereas women are more likely to go to specialised outlets.
There is a steady trend amongst manufacturers of cosmetics and toiletries towards making their products available through supermarkets and hypermarkets, given these outlets’ high volume turnover. Also, as a greater number of brands become available through these retailers, concern about the value of their brands declining if they are associated with supermarkets is decreasing.
Supermarkets and hypermarkets remained the most important distribution channel in Malaysia and accounted for almost 29% of total cosmetics and toiletries value sales. French supermarket giant Carrefour is moving away from its past practice of setting up hypermarkets within shopping complexes and intends to build stand-alone stores and purchase land too to achieve better economies of scale and higher sales revenue.
In recent years, price wars became more intense between players operating hypermarkets. The price wars were made apparent by the many campaigns launched by these hypermarkets and each player declaring that their products were cheaper than the others in order to achieve higher sales.
In 2005, department stores achieved a value share of almost 17.5% of total cosmetics and toiletries sales. The progression of Malaysian’s standard of living led to higher demand for good quality products and brought about greater awareness of local and international products. During the review period, premium cosmetics and toiletries products, especially skin care and colour cosmetics, gained significant value sales over total cosmetics and toiletries value sales, as consumers are placing more emphasis on high quality products with good customer service.
Pharmacies and drugstores accounted for almost 15% of total sales of cosmetics and personal care products in 2005. Similar to supermarkets/hypermarkets, pharmacies and drugstores such as A.S. Watson Holdings and Guardian Pharmacy chain rapidly expanded their distribution channels during the review period. Pharmacies and drugstores gained a foothold in the value sales of cosmetics and toiletries, as many of these products such as sun care, toiletries, depilatories and mass color cosmetics are channeled mostly through pharmacies/drugstores.
6.0 COMPETITIVE SITUATION
The overall cosmetics and toiletries landscape in Malaysia is one that is highly competitive and very fragmented. Due to the large number of players and fragmented nature of this industry, the top leader in cosmetics and toiletries, Colgate-Palmolive (M) Sdn Bhd had a retail value share of less than 10% in 2005. Due to the competitive nature of this market, it is very difficult for companies to dominate, and in 2005 the only domestic company that managed to edge into the top 10 list was Unza (M) Sdn Bhd.
The dominance of multinationals such as Colgate-Palmolive (M) Sdn Bhd, Unilever (M) Holdings Sdn Bhd and L’Oreal (M) Sdn Bhd is due to the strength of their financial power and the wide variety of products offered. Owing to their strength in financial power, multinational companies/ brands are able to come up with good marketing campaigns and promotional activities to attract consumers to buy their products, and as a result managed to establish their brands and gain a foothold in Malaysia.
There is new trend toward private label/ house brand in Malaysia. This trend also exists in many parts of the world, especially in Europe. House brands were making their way into cosmetics and toiletries. Retailers and distributors started manufacturing their own house brands to compete with the multinationals.
Table 2: Top 20 Cosmetics/Personal Care Products, 2002-2005
Source: Euromonitor, 2006
6.1 Direct Competitors:
§ TTRUE LOVING COMPANY (TLC)
§ GGINVERA
§ AAVON
§ JJOHNSON & JOHNSON
6.2 Indirect Competitors:
§ NNIVEA
§ CCOSWAY
§ OOLAY
Direct Competitors:
The Truly Loving Company was structured to ensure openness and transparency. The Truly Loving Company has an issued and paid up capital of RM1.5 million, out of which Julia Chong holds only 1 ordinary share of RM1 whilst her co-director, Khaw Chay Tee holds the other 1 ordinary share of RM1. These 2 ordinary shares of RM1 are NOT entitled to any dividends from the Truly Loving Company and they only entitle Julia and Chay Tee to administer and manage The Truly Loving Company.
The remaining 1,499,998 preference shares of RM1 each in the Truly Loving Company are all held by HSBC (Malaysia) Trustee Bhd on trust for charities under a Trust Deed signed between HSBC (Malaysia) Trustee Bhd and The Truly Loving Company. These 1,499,998 preference shares of RM1 each are entitled to 100% of the dividends that are declared by The Truly Loving Company. As such, no one, except HSBC (Malaysia) Trustees Bhd and the charities can received the dividends paid out by The Truly Loving Company.
Prudtcs,bath and body:_ body wash,bath bar,body mosturiser,body care,kitchen and bathroom,handwash,dish wash,toilet bowl cleanser.floor and glass-floor cleanser,glass cleanser
Established in 1985 L.D. Waxson has grown from strength to strength to become one of the most prominent and leading player in the beauty care industry. From meager staff strength of five since its inception, the company now has a workforce of more than 500 dedicated employees.
With the creation of the brand name ‘Ginvera’ in 1985, the company has continued relentlessly in pursuit of better products and better customer service to provide better value to its customers.
The company produces more than 90 products from top to bottom ranging from shampoo to diapers. With the advent of new technology and many scientific breakthroughs, the company incorporates these into the development of its new products. This has helped to make their products more effective, much safer and more affordable.
The corporation's headquarters is located in New Brunswick, New Jersey, United States. Its consumer division is located in Skillman, New Jersey. The corporation includes some 250 subsidiary companies with operations in over 57 countries. Its products are sold in over 175 countries. J&J had worldwide pharmaceutical sales of $24.6 billion for the full-year 2008.
Johnson & Johnson's brands include numerous household names of medications and first aid supplies. Among its well-known consumer products are the Band-Aid Brand line of bandages, Tylenol medications, Johnson's baby products, Neutrogena skin and beauty products, Clean & Clear facial wash and Acuvue contact lenses.
Indirect Competitors:
Nivea is a global skin- and body-care brand, owned by the Germancompany Beiersdorf. The company began in 1911when Beiersdorf developed a water-in-oilemulsifier as a skin cream with Eucerit, the first stable emulsion of its kind. The company's owner, Oskar Troplowitz, named it Nivea, from the Latin word niveus/nivea/niveum (meaning snow-white).
During the 1930s, Beiersdorf began producing products such astanning oils, shaving creams, shampoo and facial toners. The trademark "Nivea" was expropriated in many countries followingWorld War II. Beiersdorf completed buying back the confiscated trademark rights in 1997.
Internationalisation during the 1980s propelled the Nivea brand to a wider global market.
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Olay (known until 1999 asOil of Olay in South Africaand North America and Oil of Ulay in the United Kingdom) is a Procter & Gamble brand, based around facial moisturizerskin care products. The Olay brand has expanded into a range of other products grouped in “boutiques” including Complete, Total Effects, Professional, Regenerist, Quench (North America), White Radiance (Asia) and Olay Vitamins (USA). Olay is the market leader in many countries including USA, UK, and China.[2] Olay has extended its heritage as a moisturizer to stay looking young, to formally creating the “anti-aging” category in mass stores with the launch of Total Effects in 1999. The launch was almost double the typical price of a mass market moisturizer at the time. Today, there are numerous products in market more expensive than Olay. Olay Regenerist was the best performing anti-aging cream in a 2006 test done by a consumer association.[3] In August 2007, Olay was launched in India. Olay’s current slogan is "Love the skin you’re in".
Alliance Cosmetic Group
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| The Alliance Cosmetic Group is a leading distributor of cosmetics and personal care products. Brand portfolio includes Revlon cosmetics, Revlon haircolor, Avene skincare, Elancyl bodycare, SILKYGIRL cosmetics, SILKYGIRL fragrances, Silky for Men fragrances, Silky Lips lipcare, Silky White face products, Silky Care feminine hygiene wash, Tokalon face masks and Cutex nail polish remover. The Alliance Cosmetic Group launched SILKYGIRL in June 2005, adding new excitement to the landscape of color cosmetics in the mass retail market. SILKYGIRL offers a complete range of high quality color cosmetics that will meet the needs of discerning consumers in both the urban and suburban markets. SILKYGIRL’s brand personality is fun, young, colorful and exudes confidence. The core promise of the brand is delivered through the latest color trend and high quality specifications of the products. SILKYGIRL is now marketed at over 1,000 cosmetics counters in Malaysia, Singapore, Brunei and Jakarta. In Malaysia, it is available at Guardian, Watsons, Parkson, Jusco, Sasa, Apex and other independent supermarkets and pharmacies. Following the success of SILKYGIRL color cosmetics, the Alliance Group launched its fragrance line in July 2006. Apart from introducing the SILKYGIRL women’s fragrances, the Alliance Cosmetic Group also introduced the Silky for Men fragrances; bringing on board Malaysian heartthrob Mawi into the Silky family. |
7.0 SWOT ANALYSIS
7.1 Strength
Well established company
More than 30 years of research & development in personal care products
Locally manufactured
Distributed to most convenient stores & available at every supermarket and hypermarket
Wide range of products
Malaysian made product hence no import tax
7.2 Weaknesses
Was very popular in the 80’s however gradually became less popular among the younger generation
Doesn’t have a specific product that they are well known for
Target market too wide
No strategic marketing
Brand image hasn’t changed since it came out
Consumers don’t trust local brands as much
7.3 Opportunities
Consumers will prefer to buy products from a trusted brand. Follow Me provides a complete range of products that can meet their needs.
The current pandemic of H1N1 and other diseases drive people to source for personal hygiene products that can protect them against such viruses.
Because of environmental factors such as the thinning of the ozone layer, people will want to buy products that can protect them against the damage that the environment can cause.
Global recession is impacting many families and individuals. They will start to watch their budget and lookout for products that are cheap and still of good quality
Because Follow Me is a local product, the campaigns that support Malaysian made products will indirectly be helping in the marketing of the brand.
7.4 Threats
Many new brands are now emerging in the market making Follow Me less and less significant.
Other brands have a certain product that they are well known for. However, follow me has a whole range of products that are equally as good.
Most brands specialize in one particular field for example skin care or hair care. Consumers will tend to buy products from various brands to meet their needs.
Every year, the Malaysian government imports a large number of personal care products from other countries. This will result in more competitors in the market.
Current competitors are moving quickly to the pace of the fast changing past of consumers’ lifestyle.
Consumers always like to try and experiment products until they find something that suits their liking.
8.0 STRATEGIC TARGET MARKET
8.1 Demographic Background
Malaysia has of relatively young population, with 74% of the total under the age of 40 years in 2005. However, growth was most notable amongst those aged 45-79 years, with the numbers of people within these age groups more than doubling between 1990 and 2015. As the population continues to age there will be an increased need for healthcare products and services catering to a more mature target audience.
With strong economic growth and rapid development in standard of living, many young couples are having fewer children than in the past, hence slower growth in the younger age groups. As a result, the median age of the population rose from 21 years in 1990 to 24 years in 2005. This is expected to continue with the median age reaching 26 years in 2015.
The current young population and growing economy suggest a lucrative consumer environment and good business opportunities across all industries, particularly aimed at the younger market, such as communications and computers. Healthy population growth also provides a lucrative and dynamic workforce in the future.
Table 1: Population by Age, 2005 – 2010 (‘000)
| No | Years | 2005 | 2010* |
| 1 | 0 -4 years | 3,067 | 3,309 |
| 2 | 5 – 9 years | 2,803 | 2,964 |
| 3 | 10 – 14 years | 2,642 | 2,683 |
| 4 | 15 – 19 years | 2,563 | 2,636 |
| 5 | 20 – 24 years | 2,353 | 2,635 |
| 6 | 25 – 29 years | 2,101 | 2,380 |
| 7 | 30 – 34 years | 1,924 | 2,070 |
| 8 | 35 – 39 years | 1,830 | 1,848 |
| 9 | 40 – 44 years | 1,655 | 1,773 |
| 10 | 45 – 49 years | 1,434 | 1,599 |
| 11 | 50 – 54 years | 1,168 | 1,395 |
| 12 | 55 - 59 years | 838 | 1,133 |
| 13 | 60 – 64 years | 614 | 777 |
| 14 | 65 – 69 years | 455 | 538 |
| 15 | 70 – 74 years | 307 | 373 |
| 16 | 75 – 79 years | 172 | 224 |
| 17 | 80+ years | 174 | 188 |
| | TOTAL POPULATION | 26,097 | 28,510 |
| | Median Age of Population | 24.2 years | 25.1 years |
Source: Statistics Malaysia and Euromonitor Database
Malaysia experienced a consistent decline in birth rates over the review period, falling more than 23% between 1990 and 2005. Better family planning, higher levels of education and a change in the role of women in society as well as the rising cost of living were all major factors putting downward pressure on birth and fertility rates.
According to Population Census 2000 [Statistics Malaysia], about 62% of the population lived in urban areas, up from 51% in 1991. Increasingly urban lifestyles are likely to result in further downward pressure on birth and fertility rate in the near future. As families are getting smaller, the amount parents have to spend on each child increases leading to consumption of more quality products and services. It is interesting to note that marriage has become secondary to increasingly career minded women in Malaysia, although the importance of marriage has not changed.
The mindset is more conservative in that preparation through monetary and material stability is important before settling down. Declining marriage rates open up opportunities for leisure products that appeal to single individuals, such as cosmetics and personal care products. Single working women with no attachment or obligations have more time and are more likely to pamper themselves. In recent years, Malaysian women became more independent and aware of their well being and beauty.
8.2 Education Attainment and Income Level
In general, the population is becoming more educated over time, with growth in those with secondary and higher education far outpacing those with primary and no education (Figure 1).
Figure 1: Average Educational Attainment in Malaysia, 2005
Source: Statistics Malaysia (www.statistics.gov.my) and Euromonitor
Competition for jobs is stiff, as there are more graduates in the market. Increasingly educated population should lead to the bigger pool of skilled workers able to drive economic growth, which will improve general living standard and increase in disposable income/ purchasing power.
8.3 Demographics
Age : 16-35
Gender: Male & Female
Education: SPM, Diploma to tertiary education and above
Occupation: Student, Employee, Retiree
Income range: RM500 – RM5000
Race & Ethnicity: All
Geographic location: Urban and sub-urban
8.4 Psychographics
Perception: Looking for value for money products that meet their needs in personal care.
Learning: Magazines, Mass media
Motivation and needs: To look good and feel confident at an affordable price
Attitude: Loyal, Persistent, Inquisitive
Personality: Young at heart, lively, adventurous, confident
Lifestyle: Fast changing pace
9.0 STRATEGIC MARKETING PLAN
9.1 Current Perception
The image that private brands portray to Malaysians is one that is fit for consumers on tight budgets. Most consumers do not have enough knowledge about private labels, the only perception and impression that these Malaysians develop come from the pricing and packaging of private labels. In general, private labels are much cheaper and have less attractive packaging, and consequently Malaysian consumers view private labels as inferior compared to multinational and local brands.
9.2 Marketing Objectives
Based on information above these are the marketing objectives that have come to occur:-
§ To increase the awareness of the brand
§ To change the perception of customers towards Follow Me
§ To create a better brand image that will have more impact on customers
§ To be able to compete with other local and non local brands
§ To increase the percentage of customers for the brand
9.3 Media Applications
Environmental Designs
§ Improve and reconstruct the counters and shelves towards a more attractive look to capture more customers.
§ To create promotional booth for a better marketing strategy
TVC
§ A TV commercial to reintroduce and promote Follow Me to the public as it is one of the best way to promote a brand throughout the country nation wide.
Packaging
§ To give a more attractive look to the packaging and improve the design that will attract consumers to buy.
10.0 SURVEY ANALYSIS
There are different ways that has been done in order to complete this research which are from case studies, surveys and interviews. An n online survey was conducted that consists of the demographics section and psychographics section. The demographics contains information about the age, gender, occupation, income rate, while the psychographics sector consists a series of question about the consumers perception towards Follow me products. The survey was done towards random group of young women’s.
10.1 Online Survey Results:
**This survey has been answered by 63 respondents.
10.2 Conclusion
Based on the survey conducted online, it shows that most of the respondents get to know Follow Me through television commercials. Hence here we understand that TV commercial plays a huge part in brand awareness and in educating consumers about the product. Most of the respondents’ perceptions are that there is nothing special about Follow Me product. To change these perceptions, a new way of advertising the brand and more brand awareness campaign should be executed. The perception towards the brand must also be redefined in order to increase the rate of sales.
As stated above in the research, supermarkets and hypermarkets remained the most important distribution channel in Malaysia and accounted for almost 29% of total cosmetics and toiletries value sales. We will target these places as one of the main fort to reach upon the targeted consumers with more attraction such as new looks of the counters and shelves besides using all other media as a medium to promote the brand.
Follow me’s brand image has been thought as a cheap and unattractive product. Therefore, small steps towards redesigning the packaging into a more attractive, modern, yet affordable product range should be taken.
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