PRODUCT:

MAD3003 ADVERTISING DESIGN PROJECT 1

ASSIGNMENT SAR

NAME: NALINI VELOOSAMY STUDENT ID: 1141327019 CHAPTER 01 INTRODUCTION

1.1 – Introduction SimplySiti has come out with a creative and innovative idea with the information of a new fragrance known as SimplySiti Eau de Parfum. The fragrance is designed in cooperation with French perfumer, Joelle Lerioux-Patris of Mane. The famous perfumer has been creating the fragrances and is the leading creator of the fragrances ingredients for a few decades. The innovation of by SimplySiti that combines science and art from France is specially formulated with Betaphroline that will help in keeping human figure in shape and enhance mood. The fragrance motto is “Smell Good, Look Good & Feel Good”. Its basically a ’s own homegrown brand, a premium local brand that has been able to position itself at par with the international brands. It is somehow maintaining local identity at a lower profile, yet with international appeal. SimplySiti’s vision is to be the top and best Asian brand in cosmetic, skincare, fragrance and wellness despite producing top quality and affordable products.

1.2 – Problem Statement and Issues

Problem: Womens have now changed into a busy lifestyle, they go to work, meet clients and are more independ- ent. Therefore they tend to choose a classy lifestyle where they want themselves labelled classy and elegant all the time. They also concern about smelling good all the time. Issue: Malaysia’s perfume industry is dominated by foreign players. Simplysiti is still struggling to gain brand loyalty and market share.

1.3 – Objectives and Aims

Objectives - To determine factors and extent of influence of this factors on brand loyalty among the users of Simplysi- ti. - To determine customers affordability and perception of loyal users towards Simplysiti products. - To recommend strategic market decisions for Simplysiti to attain sustainability in the Malaysia perfume industry. Aims - To increase brand awareness among Malaysians - To satisfy customers with good quality local product

1 CHAPTER 02 PRODUCT & BRAND

2.1 – Product Name

2.2 – Product Classification Perfume: SimplySity Her EDP (Elegance, Pure, Precious, Memoire) A perfume that is created especially for womens in four different fragrances!

2.3 – Product Characteristics Packaging - The physical appearance of this perfume doesn’t attract customers much, buyers always demand products with an attractive packaging. Too fancy packaging. Pricing Range - Fixed Price: RM69.90 - Loyal customers are more sensitive to the price - Affordable to the targeted customer Quality: Made in France

2.4 – Product Range

Fragrances: - Elegance - Pure - Precious - Memoire Colours: - Available in colourful bottles but four solid colour outer packagings. *A halal product that is not alcohol based and suitable for everyone.

2 2.5 – Distribution

Simplysiti products are distrubuted in the market by two different ways as below: (i) Directly SimplySiti Eau de Perfume > Customer

In this process, products are straight away distributed to outlets such as

where consumers are able to get hold of the product and purchase it by trying testers and check the quality.

(ii) Indirectly

SimplySiti Eau de Perfume > Others > Customers

Therefore, in this type of distribution which goods travel from the producer, through an intermediary or intermediaries, to the consumer. As for Simplysiti consumers can purchase their products through their official website.

Supermarket : Tesco, Aeon, Aeon Big Pharmacies : Watson, Guardian, Royale Pharma Shopping Mall : SOGO Online Shop : airasiamegastore.com, Fashion Valet, Hishop, The Crescent

3 2.6 – Product Life Cycle

Over the previous years compared to when first Simplysiti was introduced to the market, the sales slowly increased over a period of time. However, as time passes the brand got outdated and upcoming foreign brands managed to take over the market with their products.

2.7 – The Brand

SimplySiti Sdn. Bhd., known as SimplySiti is a cosmetic line founded by a Malaysian artiste, in March 2010 with the headquarters in Kuala Lumpur, Malaysia. The brand’s name was derived from the word “simplicity”. Siti was personally involved with the promotion of the products including starring in the product's television commercials and touring malls around Malaysia where she also released a theme song for the SimplySiti products, Rahsiaku Kini Milikmu (It Used To Be My Secret, Now It's Yours). The are produced in Korea with the incorporation of nanotechnology.. Before being released into the market, SimplySiti received Halal status from Jabatan Kemajuan Islam Malaysia (JAKIM) officials who visited the factory in Korea to inspect every aspect of the production with strict regulations to ensure the products are Halal.

2.8 – Brand Image and Implication - High quality products - Products that are technologically advanced, user friendly, and reliable - Natural products that are Halal *Implications - Low distribution - Dull packaging

4 2.9 – Strength and Weakness

(i) Strength - Suitable for classy womens - Good product quality - Long lasting fragrance - Affordable, value pricing (ii) Weaknesses - Lack of brand awareness - No brand loyalty - Local brands are left behind cause people choose foreign products

2.10 –Advantage and Disadvantages Advantages - Local product that offers same quality perfume with foreign brands - Long lasting fragrance Disadvantages - Price is almost similar to imported products. - Low brand awareness - No brand loyalty - No market share and low product distribution

2.11 Unique Selling Proposition Simplysiti is a nature based Halal product.

2.12 Promotional History and Advertising Schedule

Siti was personally involved with the promotion of the products including starring in the product's television commercials and touring malls around Malaysia where she also released a theme song for the SimplySiti products. SIti attracted the attention of viewers through TVC showing her walking into research labs leaving audince in suspense of what was actually going on when she first step into this industry. She manipulated audience and made them curious on getting to know what actually Siti was up to. Her promotional tagline was:

“ Rahsiaku Kini Milikmu (It Used To Be My Secret, Now It's Yours)”

2.13 Positioning statement Since Malaysia is an Islamic country and most of its citizens are Muslims, a halal product is a must to have in the local market. Comparing with foreign brands,most are alcohol based and this is certainly unsuitable for Muslim womens.

5 CHAPTER 03 COMPANY

TYPE Private

INDUSTRY Cosmetics,

March 30, 2010; 6 years ago FOUNDED by Siti Nurhaliza

HEADQUARTERS Kuala Lumpur, Malaysia Siti Nurhaliza (President), KEY PEOPLE Datuk Khalid Mohd Jiwa (Co-President), Datuk Normaziah Sheikh Mohamed, P.Y. Wong PRODUCTS Skincare, , make-up, perfume

WEBSITE simplysiti.com.my

3.1 – Company Overview

Simplysiti is basically a private company. A global research medical aesthetics company, and Sim- plySiti, a prestige beauty brand created under the Malaysia’s number one celebrity and beauty icon Dato’ Siti Nurhaliza, today is proud to announce the arrival and nationwide availability of SimplySiti and Make-up products. he new skin care line is scientifically-designed and clinically-proven to complement select in-office cosmetic procedures while the make-up range explores the true sense of make-up and colour at its purest and most beautiful creation.

3.2 – Business Description

Simplysiti’s business is basically personal care production business which consists of four products a. Skincare b. Lipstick c. Make-up d. Perfume They market their products into local and international markets such as Thailand, Vietnam and Indonesia. 3.3 – Company History

Propelled in mid 2010, SimplySiti is Siti Nurhaliza's second endeavor to take an interest in a busi- ness industry after her first trial with her CTea arrived at a deadlock, and the generation of her marked tea was ceased in March to concentrate more on SimplySiti. With the assistance of her better half, Datuk Seri Khalid Mohd Jiwa and two others business accomplices, she wandered into the corrective business follow- ing two years of research with AC Nielsen to concentrate the market and target clients. The beauty care products are delivered in Korea with the fuse of nanotechnology. Before being discharged into the market, SimplySiti got Halal status from Jabatan Kemajuan Islam Malaysia (JAKIM) authorities who went to the industrial facility in Korea to review each part of the generation with strict controls to guarantee the items are Halal. A large number of the items, particularly her lipstick go discharged bear the names from her singles' and collections' titles. Advertising techniques incorporate accessibility of the items more than 200 Watsons, Guardian and Jusco outlets all through Malaysia, with its first booth at the JB Sentral in and there are arrangements for elevating the items to , Indonesia, Singapore and Middle East nations. In July, Siti marked an agreement a British toiletries organization, Standard Soap for creating Sim- plySiti new items, for example, , hostile to perspirant and different toiletries for discharge in Febru- ary 2011, which could worth up to £5 million for the initial three to four years. A restricted gold version of SimplySiti items with her mark was discharged in late August particular- ly for Hari Raya Aidilfitri and after a month, another gathering known as "SimplySiti Glam Red" was discharged with five new tints for the lipstick accumulation.

3.4 – Key People

Siti Nurhaliza (President), Datuk Khalid Mohd Jiwa (Co-President), Datuk Normaziah Sheikh Mohamed, P.Y. Wong

3.5 – Location and Subsidiaries

HQ: Suite 33-11 & 35-11, The Boulevard, Mid Valley City, Lingkaran Syed Putra, Wilayah Persekutuan, 59200 Kuala Lumpur, Malaysia. 3.6 – Brands, Major Products and Services

Products

(i) Cosmetics - Lips - Face - Eyes

(ii) Skincare - Anti-aging - Whitening - Hydrating - Acne solution - Treatment

(iii) Fragrance - Her EDP - Koleksi

3.7 – Corporate Vision - To be the top & best Asian brand in cosmetic, skincare, fragrance and wellness. - To produce top quality and affordable products.

3.8 – Corporate Mission - To sustain brand loyalty among local and international customers.

3.9 – Company’s Current Promotional Strategy a) Advertising - Create a story concept to introduce its range perfumes b) Sales Promotions - Road shows, campaigns c) Public Relation -Promoting indirectly with the production company

3.10 – Product Sales’ History

100% 2010 2012 Sales 2014

0% Present Year 3.11 – Current Marketing Objective

Short Term - Increase profit and the selling of this perfume, attract more customers on buying it

Long Term - Brand loyalty - Company profit

3.12 – Media Expenditure

As for the product, they are making use of media but not completely I would say. Medias they use are such as their own website, Facebook, Instagram, Twitter, YouTube and also Whatsapp. Today, media has become the major mediator between customers and producers. SimplySiti has their own website where customers can actually purchase their products directly without having to go to any outlets. Besides they also come up with new activities and launch of new range products on their website frequently, such as:

SimplySiti is also active on social medias as a part of their promotion. They interact and react to customers posts regularly. Examples of social medias are such as Facebook, Twitter and Whatsapp. CHAPTER 04 CONSUMERS AND STAKEHOLDERS

4.1 – Consumers’ Characteristics

4.1.1 – Current Consumers’ Characteristics. Identify “current” demographics situation

» Age: 15 - 40 years old » Gender: Womens » Education: College » Occupation: Professional working womens, students » Income range: RM 1000 - RM 2500 » Race & ethnicity: Especially Muslims and other races too » Geographical location: Urban,sub-urban

4.1.2 Psychographics - Identify “current” psychographics situation;

• Perception: Consumers finds Simplysiti perfume as a very classy and high quality product. • Learning: Through other users and walk in store. • Motivation & needs: The products’ advantages towards the consumers’ needs is that its a long lasting fragrance that will make consumers to stay classy and confident about themselves always. • Attitude & Personality: - Perfume lovers - True fans of Siti Nur Haliza - Classy womens - Students • Lifestyle: Professional, a classy lifestyle, urban

4.2 – Stakeholders’ Characteristics

4.2.1 Primary Siti Nurhaliza (President) - Main contributor to ideas of the whole company production, what comes in and goes out and so on.

4.2.2 Secondary Datuk Khalid Mohd Jiwa (Co-President) - Secondary contributor of the company, personal stakeholder which takes care of the company profit and loss. CHAPTER 05 INDUSTRY AND THE MARKET PLACE

5.1 – The Industry

5.1.1 Definition of the Industry

Now 6 years on, SimplySiti continues to provide the consumers beauty solutions by giving attention to the local needs, from meticulous research and development, appealing design and packaging, to careful selection of ingredients for maximum benefits. Every single detail in the product offering is subjected to rigorous and stringent standards of quality. With various ranges of skincare, cosmetics and fragrance that protect, nourish and promote complete beauty all in one, SimplySiti products truly cater to the Malaysian women’s beauty needs.

Today, SimplySiti’s products are available nationwide offering more than 150 high quality products from her range. Among the brand’s hero products are the Simply Perfect Two Way Cake which contains natural silicon powder with SPF 30, and provides long lasting perfect coverage. The Dermagic Beauty is also steadfast in becoming user’s favorite because of its ability to de-stress the skin, uplifts mood to unveil a more youthful and fairer skin. Their tagline ‘Simply Beautiful’, SimplySiti philosophy is truly about beauty solutions that simply bring out the best in you.

5.1.2 Shape of the Industry

Dato’ Siti Nurhaliza Tarudin is Malaysia’s queen of entertainment and is loved by many, young and old. Her singing talent and pleasant personality has made her an idol to Malaysians especially the younger generation. She rose to stardom at a tender age of 15 making her Malaysia’s No.1 entertainer ever since. In no time she became an icon of the music industry, giving inspiration to millions of fans for a brighter future as an artiste.

This extraordinary pretty lady hails from Kuala Lipis, Pahang but was born in Termeloh, a town nearby. She had been singing at school performances and has entered several contests at district and state level. Her star shone when she won the singing competition ‘Bintang HMI’ organized by Radio Television Malaysia (RTM) in 1995. By that time, there was no looking back as she make headway to greater heights.Some years later she performed at the international arenas having solo concerts and shows in Asian countries particular- ly at the prestigious Royal Albert Hall London in 2005.All along her 20 years career, she has cut more than 20 albums including one in English, won 200 awards both local and international, sang the original soundtrack for box-office movies, composed and produced for the local music with overwhelming success. She is being invited to perform at many National and State functions and also as Malaysia’s singing ato the world. With her enormous and exemplary triumphs and achievements her name was carved in ‘The Malay- sia Book of Records twice. She was also bestowed upon the State Award, ‘Darjah Indera Mahkota Pahang’ by His Royal Highness, the Sultan of Pahang.

Until today, Dato’ Siti has been and will always be involved in charitable and social work, constantly caring for the needy and concerned over women and child abuse not only in Malaysia but the world over. She has performed at numerous Charity and Fund Raising events throughout the nation as well as delivering talks and conducting workshops. One apparent example is her appointment as Solidarity Ambassador of the Persatuan Bulan Sabit Merah (Red Cross) followed by many other organizations as Product Ambassador. In 2006, Dato’ Siti started a family business with diversified interest in various fields mainly in the music and entertainment industry. She had launched her own beauty product line – SimplySiti in 2010 which had made nationwide sensation in both local and the international market. May her business flourish and with her kind attributes will continue to do charity work and contribute towards elevating the Muslim economies. 5.1.3 Development of the Industry

Today’s business environment is dynamic and current business competition is characterized by some authors as hyper-competition. For a new player, sustainable competitive advantage is a crucial indicator of success. SimplySiti is a new brand in the beauty industry in Malaysia having being established in 2008 and launched in 2010. Amidst the presence of more established global competitors like L’Oreal, Avon and Estee Lauder in the Malaysian market, SimplySiti has done fairly well. Much of its success is attributed to fast acceptance by the market as the main target market for this brand are fans of Dato’ Siti Nurhaliza, the most popular Malaysian singer with vast following not only in Malaysia but across countries such as Indonesia, Singapore, Brunei and the Middle East. The brand itself is associated with Dato’ Siti Nurhaliza as she is the founder and the driver of this brand and she is involved in marketing and promoting this brand directly. This case study highlights how a newly established local business competes with the more established global players. Specifically, the article analyzes how SimplySiti thrives in the midst of very strong and much-established competitors and the direction it takes to steer the company in the next phase of its estab- lishment.

HDC (CEO) Datuk Seri Jamil Bidin said halal beautifiers and individual care organizations have begun to effectively advance their items as Muslim purchasers are more mindful of choices and non-Mus- lims are pulled in to more secure and "moral" items. "After halal nourishment and managing an account, Muslims have started to search for halal beautifying agents and individual care items. Muslim purchasers, with worldwide populace of almost two billion, are progressively mindful that a few makeup contain fixings got from creature sources and are hence worried about the halal status," he told Business Times. SimplySiti Sdn Bhd author Datuk Siti Nurhaliza Tarudin said there is an immense interest for halal beauty care products given the colossal Muslim populace around the world. "That is the reason SimplySiti has guaranteed that every one of our items get halal affirmations," she said. Past that, any producer which needs its items to be fruitful requirements to go the additional mile to guarantee that purchasers have the best advertising. "A brand must remain all alone to something past the halal situating," Siti Nurhaliza included. There are more than 100 halal guaranteed organizations offering beauty care products and individual care items in Malaysia, including SimplySiti, Johnson and Johnson Sdn Bhd, Wipro Unza (M) Sdn Bhd and Southern Lion Sdn Bhd. "Nearby organizations ought to likewise begin taking a gander at abroad markets as this fragment has high development potential," said Jamil. The fare esteem for halal beautifying agents and individual care items in the initial seventy five percent of a year ago remained at RM1.73 billion, or 5.6 for every penny of the nation's aggregate fares. "Nearby organizations can't rely on upon the household showcase as the Muslim populace in the nation is just around 16 million," he said.

•Perused More : http://www.nst.com.my/news/2016/02/127261/worldwide halal-advertise developing great- er

5.2 – The Market Place

5.2.1 Current Condition of the Market place

- Increased perfume users - Change in lifestyle, classy lifestyle - More sophisticated womens - Professional womens 5.2.2 Current Condition of the Market Needs

MARKET NEEDS a. Selection b. Accessibility c. Customer service d. Competitive pricing

SimplySiti Eau De Perfume is providing its customers with four selection of high-quality perfume fragrances that are unique and pleasing to be inhaled, offer a affordable and nature friendly, halal product. SimplySiti seeks to fulfill the following benefits that are important to their customers.

– Selection: Four selection of high-quality perfume fragrances that are unique and pleasing to be inhaled, offer a affordable and nature friendly, halal product. – Accessibility: Can purchase the product online or walk in purchase. – Customer service: The customer will be impressed with the quality of product. – Competitive pricing: All products/services will be competitively priced relative to comparable perfumes.

MARKET TRENDS

The market trends of customer is more narrowed to professional middle class womens who wants to be classy and stay fresh by smelling good all the time.

-Product quality: The preference for high-quality perfume is increasing as customers are wanting to smell good always. – Presentation/appearance: A classy packaging. – Body odour consciousness: As womens are moving around alot due to work, study and etc, they become more concious on smelling good all the time. – Selection. People are demanding a more long lasting fragrance which can be affordable at the same time.

5.2.2 Changes in Market place Positivity - Diehard fans of Siti still chooses her products

Negativity - Locals tend to buy more of foreign products than local brands itself CHAPTER 06 COMPETITIVE SITUATION

6.1 – Direct Competitors

SILKYGIRL: SilkyGirl Sweet Heart Eau de Toilette Perfume Price: RM 52.30 USP: Sweet teenage likable fragrance Features: - It’s refreshingly citrusy. - It’s a really pleasant scent, wearable - Lasts throughout the day - 50ml

Enchanteur: Romantic Price: RM 23.97 USP: Strong brand identity Features: - An uplifting fragrance with feminine notes - Very affordable - Strong fragrance - One bottle will last for at least a month - Available at most of the beauty stores. - 50 ml

Playboy: Play It Sexy Perfume Price: RM 42.90 USP: Strong brand image Features: - Intoxicating and seductive fragrance - Sensual and sophisticated aromas - 50 ml 6.2 – Indirect Competitors

AVON: FEMME Price: RM 91.18 USP: Classy look Features: - An elegant fragrance with sparkling freshness and opulent floralsIt’s a really pleasant scent, wearable - Luxuriously long-lasting, for hour after hour of beautiful scent - Made in Mexico - 1.7 fl. oz.

BODY SHOP: NEROLI JASMINE Price: RM 69.00 USP: Well known brand Features: - Oriental Floral fragrance for women - 30 ml