Professional Documents
Culture Documents
Group Member :
Mohd Rizal Bin Kismath Batcha 85800
Mohd Azizul Hakim Bin Zaini 80024
Muhammad Raof Bin Yaaccob 85803
The Market
The local sun care products market is valued at
approximately RM 9 million with sees low current value
growth of less than 2% in 2006 & 2007.
Sun protection only to see growth in 2006 & 2007, rising
just under 3%.
Sales were restricted to tourist with limited use among
Malaysian.
But numerous new product launches also signified that
the market still have room for growth.
Table 1 Sales of Sun protection: Value 2001-2006
Source: Official statistics, trade associations, trade press, company research, trade
interviews, Euromonitor International estimates
Mass brands still continues to dominate the
market.
Increasing sales of premium product are
supported by the improving economy and
purchasing power.
Many private label brands are improving in
quality and attracting a growing number of
consumers who are keen to get value for money.
According to the industry, the market is
saturated with many different types of products
and in the long run, establish brands that
emphasize quality and service will have the
edge.
Market Type
Mass Market
Low to medium range price protective sun care products are sold at mass
market in supermarkets, pharmacies and through direct selling agents such as
Avon, Amway, Cosway, Maybelline and L’Oreal.
Others
Individual outlets of private brand (especially franchise chains) these usually
specialize in natural based products that offer niche and specialized products to
the middle and higher income groups.
Distribution Channels
Supermarkets / hypermarkets
The most important channel for mass brands in Malaysia such Nivea, Johnson&Johnson,
Neutrogena, Maybelline and L'Oreal. These brands using Giant, Tesco & Carrefour to
reach the mass market. These brands positioning as good quality at affordable price that
mainly target the low income consumers.
Department Stores
The increase in the standard of living leads to higher demand for high quality products.
Premium brands such as Estee Lauder, Chanel, Christian Dior, Gucci, Bobby Brown,
Clinique, La Mer and Shiseido are usually sold over-the-counter in major department
stores such as: Isetan, Parkson, and Metrojaya.
Cont’s….
Pharmacy/Personal Care Stores
Pharmacy and personal care stores such as Guardian and Watson are the most
popular one-stop center for mass brand. Brands that cater to the mass market
such as Neutrogena, L'Oreal, Nivea and Maybelline are primarily sold at these
outlets.
Direct Sales/Marketing
Avon & Amway are the most popular direct sellers in Malaysia due to their larger
number of distributors who are able to reach consumers living in rural and
suburban areas. Other reputable brands, such as Sothy's and Thalgo, are
distributed by dealers.
Specialty Stores
Specialty stores are becoming an important channel for premium and upper-mass
brands. These stores cater to consumers with higher purchasing power. The more
well-known specialty store players are The Body Shop, Crabtree & Evelyn,
L’Occitane and Sasa (from Hong Kong).
The Consumer Attitude
Protective sun care segment are still relatively undeveloped compared those
developed countries.
Demands for sun protection is expected to increase as consumers are
becoming more aware of the harmful damage of ultra violet rays to the skin.
Sales of these products were mainly restricted to consumers who are mainly
young educated and career women that concern on their skin care, with
limited use among men.
Chinese are the main consumers followed Malay and Indian. Usually the
Malaysian consumer used sun protection product on their face with limited
use on several expose body part.
New Consumer Trends
Demand of natural cosmetics
Associate brand with fashion
More favor to many attributes in product
Associate brand with dermatology research
Men an increasingly important consumer segment (metro sexual)
Direct sales model
Shifting focus towards the young consumers
Today, beauty definitions include beauty with good health. self esteem, and
confidence.
Avon
Well and most popular direct seller in Malaysia
Larger numbers of distributor who are able to reach
consumer living in rural and suburban areas.
Offer broad range of products to every types of customer
Main competitor is Amway, Cosway, Maybelline and
L’Oreal.
Independent sell raps create personal catered feel
Brand name is not advertise as other cosmetic
company's
“Low end” product perception
Estee Lauder
Weaknesses
Dependence on Western European markets late entry into Malaysia
Weak brand name awareness among Malaysian consumer
Opportunities
Threats
Competition from private labels
Price competition among branded manufacturers
Expansion of competitor into new sector
Weak economy can hurt company
Vichy Opportunities
Education Strategy
Vichy will need to increase awareness among local consumers regarding
the potential for skin damage caused by prolonged exposure to the sun
even on tanned skin
Market Share
As a new brand in Malaysia, Vichy share market are still small compare
to a well known brands such as Esteelauder, Clinique, Seisedo, Nivea and
Avon.
Product
Vichy offer derma-skin care product that suitable for all skin type even the
most sensitive.
The packaging design are simple but attractive to the target customers. It
also reflect its status as a premium brand.
Cont’s
Business Performance
Vichy has select several popular and well known pharmacies with wide
outlet such as Watson, Guardian and Origin to distribute its product to the
targeted customers.
This well known pharmacies are suitable with Vichy image as a upper mass
/ premium brand for derma-skin care products.
The 4 P’s
As a premium brand, range price for Vichy product are quiet higher compare
to mass brand product such as Nivea, Neutrogena and Johnson & Johnson
Consumers
As a premium brand, Vichy’s customers are mainly young adult from middle
and higher income.
New Product For Capital Soleil
Capital Soleil - Family care
Advance
Family is vital for us so we propose Capital Soleil to
introduce a new protective sun care product that protect
the whole family from UVA and UVB rays call “family
care advance”
Formulated with improved, broad spectrum UVA and
UVB protection, enriched with natural aloe and vitamin
A, C and E to help moisturized skin.
Cont’s…
Thank You