ORGANIC HERBAL SKIN CARE BY TAIWAN’S PLANTS

Group 7: Marketing Plan

Instructor : Dr. Trappey

Index2

Background Executive summary – Internal & External SWOT analysis Marketing Objective & Strategy Finance analysis Future Goals and Expectation

Background 3

Over 4,000 kinds of original plants only accrete in Taiwan which are the most natural and healthy ingredients in the world.

More and more people prefer using herbal skin care products instead of synthetic products in Taiwan.

Rarely skin care products made from Taiwan’s original plants

Our mission4

Providing skin care products and service with the best quality and 100 % organic products.

Supporting traditional production methods, using authentic ingredients and harvesting techniques.

Ingredients : Only the finest ingredients and selected, such as A.O.C. (Controlled Origin).

Our vision: Becoming the most popular skin care product in the world.

Brand Story5

LOHAS: Lifestyle Of Health And LOHAS: Lifestyle Of Health And SustainabilitySustainability

LLocalocalOOrganirganiccHHerbalerbal

AAuthenticityuthenticitySServiceervice

About US6

Capital : NTD 50,000,000

What do we offer? 7

Taiwan Evening primrose

The flowers open in the evening, hence the name "evening primrose“. One of the common names "Kings cure-all”Benefit: Natural vitamins (A, C, E) The high-grade formula has harmonizing, smoothing, and regenerative properties and is beneficial for all skin types.

Chamaecyparis TaiwanensIs Masam

The presence of β-thujaplicin has been reported in this species (Zavarin et al. 1959). The contact allergenic properties of this compound were investigated by Ito (1964).

What do we offer ?8

Bretschneidera sinensis Hemsl

The high-grade formula has harmonizing, smoothing, and regenerative properties and is beneficial for all skin types.

Prunus mume

The high-grade formula has harmonizing, smoothing, and regenerative properties and is beneficial for all skin types.

Chinese Soapberry Seed

The high-grade formula has harmonizing, smoothing, and regenerative properties and is beneficial for all skin types.

 

Products & Offering9

Face Care Body & Hands Bath & Shower Fragrance Aromatherapy SPA

10

Executive summary – Internal & External

Executive summary – Internal 11

Body Naturalism composition which is made from Taiwan’s organic plants.

100% bought from Taiwanese farmers that qualified by organic procedure.

Suitable for sensitivity skin ,even newborn baby can use them without any consideration.

Executive summary – External 12

White collar population:42% of Taiwanese who need skin care products to avoid skin regression caused by heavy life pressure and environment pollution

Sensitive skin: 1/6 Focus on skin care products that can

apply on face and body.

Executive summary – External Analysis13

External Environment Relative Market share

Market Growth Rate

SWOT Analysis 14

StrengthMade by 100% organic herbal plant in Taiwan. Cost effective.

WeaknessWeak Brand awareness .Lack of capital, could not implement powerful promotion .Few experience on manufacturing.

OpportunityLOHAS life style is a trend in Taiwan.Type of agriculture is changing from traditional to intensive.

ThreatGlobal brands monopolize the market, difficult for new brand to survive. Unstable resources of ingredients.

Market Segmentation15

15-24,510000,

12%

25-29,742000,

17%

30-34,632000,

15%

35-39,630000,

15%40-44,620000,

15%

45-64,1122000

, 26%

•Employed

•Female

•Age

Total Employed Female:

4,301,000

25-44 Year-Old: 2,624,000

Source: National Statistic Bureau - 2006

Market Target16

•Total Employed Female: 4,301,000

•25-44 Year-Old: 2,624,000

Target25-44 Year-Old Female With College

And University Education: 1,691,000

Source: National Statistic Bureau - 2006

CollegeUniversity, 1691000,

64%

Rest,933000,

36%

17

Marketing Objective & Strategy

Marketing Objective18

•Building Strong Brand Awareness – Body Naturalism•Well Position In Natural skin care products.•Increase Sales, Market Share And Breakeven In three Year•Creating LOHAS life Style

Marketing Matrix - Product19

Creating More Taiwan’s Plants For Cash Cow Products(Face skin care & Fragrance)

Creating Another Star Product (Aromatherapy) Y Generation Series Package Products (Basic Face skin care and

Items) Creating New Brand For Royal Customers Who

Turn over rate :45 % Product With Personalized Computer

Simulation Software Customized essential oil – Customers No Need

To Compromise

Season Limited Products20

SpringMume Face

Mist

Mume Hualoushui valuable to

the main components, with

aloe and natural moisturizing

factor, mild moisturizing,

soothing effect can be used for

the face, body and hair,

conditioning moisture at the

same time bring the fresh

aroma of mume

SummerUltra Day Care SPF15With favor of juniper. A factorSPF15 sunscreen, especially for dry skin or use dry climate.

AutumnEvening

PrimroseBrightening

PolishUse 1 or 2 time every week.Take all appropriate to apply mature face, neutral to the use of stem Health skin, the product stay in the face about 20 seconds; mixed or strengthening facial skin care, could stay 3-5 minutes After a little massage, and then water Chong Cheng.

WinterChinese

Soapberryseed Lip careWith Chinese soapberry seed ,honey and vitamin E, can be effective antioxidant, the long-lasting lip Shuinen maintain, and create a natural radiant .!

Stronger R & D Team21

Strong research team Alliance with outside resources –

Body Naturalism Lab & University

Marketing Matrix - Price22

Seasonal Package Discount Same Price Level of Y Generation Series Mid-high Price Range herbal and organic products

Marketing Matrix - Place23

Direct sales – commission & bonus system Direct marketing- Interactive web, catalog

marketing Enhance Existing shops SPA Stores Designated Spot Cosmetic Counters (Department

stores) Alliance With B&B New Counter In Administration Centers (Hsinchu,

Taichung, Tainan Science Parks)

Direct Sales (A)24

Share the product’s qualitywith us

Direct Sale (Customer are only user)

Direct Sales (B)25

Everyone can make money

Channels26

http://www.bodynaturalism.com27

Strategy Alliance- B & B28

Marketing Matrix - Promotion29

Free Skin Care Education For:- The 4th Grade of University Female Student- Company Welfare Committee (Law/Accountant Firms)

Sponsor Taiwan Art/Culture/Drama Activities/Shows Brand Image Shop Free Service Cell Phone Promotion For New Program And Free Education Advertising With Magazine / Women read Environment Protection Program

- Empty Bottle For Sample

Action Plan30

Form A New Organization To Implement New Marketing Plan

Gathering Contact List of Top 1000 Manufacturers, Top 500 Service Companies, School, Government, Law And Accounting Firms and International Companies

Establish Sales Incentive Program

31

Finance Analysis

Financial Simulation Analysis I

(By Thousand, NTD)

Capital $50,000 Commerce w/o FactoryStockholder 6 people Outsourcing biotech factoryVerified item 　 2008 2009 2010

BEP revenue 　 51,818 62,182 77,727BEP revenue/ expected revenue 　 47% 47% 47%　 　 　 　 　Revenue 　 110,500 132,600 165,750 Gross profit 67% 74,035 88,842 111,053 Expense ratio 18% 19,890 23,868 29,835 Operation profit ratio 49% 54,145 64,974 81,218

non-operating revenue & expense -3% (3,315) (3,978) (4,973)

Ratio of the income before tax 46% 50,830 60,996 76,245 EPS before tax (By Dollars; NTD) 　 10.17 12.20 15.25

Capital turnover (By time) 　 2.21 2.65 3.32

Financial Simulation Analysis II

Capital 　 50,000 50,000 50,000

Payroll 65% 12,929 15,514 19,393

Equipment 6% 1,193 1,432 1,790

Administration 4% 796 955 1,193 Marketing expense 25% 4,973 5,967 7,459 Total operating expense 100% 19,890 23,868 29,835

Item Fixed Variable Total

Payroll 65% 35% 100%

Equipment 98% 2% 100%

Administration 98% 2% 100%

Marketing 20% 80% 100%

Financial Simulation Analysis III　 　 2008 　 　 fixed variable totalPayroll 　 8,404 4,525 12,929

Equipment 　 1,170 24 1,193 Administration 　 780 16 796 Marketing expense 　 995 3,978 4,973 Total operating expense (fixed) 　 11,347 8,543 19,890 the ratio of revenue (variable) 　 10.3% 7.7% 18.0%BEP revenue (including COGS) 　 　 　 51,818 　 　 2009 　 　 fixed variable totalPayroll 　 10,084 5,430 15,514 Equipment 　 1,403 29 1,432 Administration 　 936 19 955

Marketing expense 　 1,193 4,774 5,967 Total operating expense (fixed) 　 13,617 10,251 23,868 the ratio of revenue (variable) 　 10.3% 7.7% 18.0%BEP revenue (including COGS) 　 　 　 62,182

Financial Simulation Analysis IV　 　 2010

　 　 fixed variable total

Payroll 　 12,605 6,787 19,393

Equipment 　 1,754 36 1,790

Administration 　 1,170 24 1,193

Marketing expense 　 1,492 5,967 7,459

Total operating expense (fixed) 　 17,021 12,814 29,835

the ratio of revenue (variable) 　 10.3% 7.7% 18.0%

BEP revenue (including COGS) 　 　 　 77,727

Break-Even Point 36

Break-Even Point (i.e. 2008)　 　 　 　 　 　 　 　 　 　 　　 　　 　　 　　 　　 　　 　　 　　 　　 　　 　　 　

COGS 17100 +

FC 11,347　 　

(Expense)　 　　 　　 　　 　　 　 　 　 　 　 　 　 　 　 　

(Revenue)

Profit S = FC + (VC * S); S = Sales

S = 11387 + (0.077 * S)BEP

51,818

0

Total Expense

Loss

Break-Even Point (i.e. 2008)

Future Goals and Expectation37

Market Leader

Profitable Company -

Best Company That Employees Would Like To Work For

So, We Can Work Hard For Green Earth Responsibility

Thank you

38

Appendix 1 - Sales Forecast -

39Sales (By Thousand, NTD) 2008 2009 2010

Face Care $10,000 $12,000 $15,000 Body & Hands 10,000 12,000 15,000 Bath & Shower 30,000 36,000 45,000 fragrance 18,000 21,600 27,000 Aromatherapy 28,000 33,600 42,000 SPA 14,500 17,400 21,750 Total Sals $110,500 $132,600 $165,750 Expected Growth Rate 1 20% 25%

　 　 　 　Direct Cost of Sales (By Thousand)

2008 2008 2010

Face Care $1,200 $1,440 $1,800 Body & Hands 1,200 1,440 1,800 Bath & Shower 3,600 4,320 5,400 fragrance 2,160 2,592 3,240 Aromatherapy 3,360 4,032 5,040 SPA 1,740 2,088 2,610 Subtotal Cost of Sales $13,260 $15,912 $19,890

Appendix 2 - Marketing Expense Budget -

40Marketing Expense Budget (By Thousand, NTD) 2008 2009 2010

Web site $1,860 $2,427 $3,625 Advertisements 1,998 2,580 2,685 Printed Material 1,085 960 1,000 Other expense 30 78 149

Total Sales and Marketing Expenses $4,973 $5,967 $7,459

　 　 Percent of Sales 4.50% 4.50% 4.50%Contribution Margin $23,500 $36,000 $51,200 Contribution Margin/Sales 21% 27% 31%

Groth Profit 67%Direct Sales Cost 12%Fixed cost 21%Total 100%