1.0 Preliminary Analysis Screening

1.1 Company Character

1.1.1 Company Background/ History

Jill Lewis was born in New York on March 9, 1965 and later attended the studies of

fashion and art at the Parsons School of Design. While attending courses at the

Parsons, Stuart manages to get an opportunity to show her seven astonishing original

pieces at the graduation Show, and successfully caught the attention of the panel

judges of the show. After the show, Lewis immediately obtained a 2 years contract from

the Macy’s Department Stores. As this dramatically turn out to be the stepping stone of

her fashion dreams, designs to be advertised in New York Magazines.

During the late 1990s, Lewis started to establish as a global brand growing with huge

success, especially in the Asia Pacific countries. And today, Lewis’s collection is

featured into almost 180 boutiques all over the world. However, Lewis has never given

up her dream, to make every girl pretty in their way. Ever since her childhood, Jill Lewis

has had a great passion and enthusiasm for cosmetics and fragrance. She intend to

continues her princess dream just like any other small girls will do, and uses the idea

into the production concept. Therefore, Jill Lewis beauty is most well-known for its

feminine, dreamy, fantasy- alike while princess-style of cosmetic products.

1.1.1.2 Company Philosophy

“Creativity, openness, continual self-improvement and fun”

The company believes staff will only be motivated to produce good quality of work,

when they are given chances. Through openness of new ideas, creativity, continual

self-improvement and nevertheless, fun will best motivates the staff to perform at their

peak.

1.1.1.3 Vision

“To be the pioneer leader in cosmetic industry and bringing the best for everyone”

By stating the best, it means the best products, the best people and the best innovative

ideas. Jill Lewis Beauty Department is team up by 20 female employees, which aged

from 20s and 30s, just like the age of the targeted group. All of us use what we have

produced; we never mess with ladies appearance.

Ideas from all the basis activities such as research, package design, promotional

activities and even store design are carefully developed to incorporate with our global

perspective Jill Lewis brand.

1.1.1.4 Mission

“To encourage all the one who are feminine in their heart of the use of makeup, and the

fun and joy arises from it.”

Jill Lewis believes that every girl dreams to be like a princess, to be taken care and

pampered. Therefore, company’s products are developed into such a way that could

remind and delight their day by saying everyone should reach for the stars!

1.1.1.5 Slogan

“Dream comes true” – by Jill Lewis

Jill Lewis believes that every girl is motivated by their dreams. Through continuously

improvement of their inner and outer beauty, they could get closer and closer to their

dreams.

1.1.2 Products

“A crown jewel for every princess”

The company cosmetics products are developed into more than just a makeup tool but

also a trendy accessory. The packaging of the products is like “princess crowned jewel”

and uses both the modern and retro element in its design. The products uses a lot of

crystals, mirrors, flower prints, light and soft tone of colors. Besides, diamonds are

always women’s best friend, therefore, the design ideas are mostly generated from the

diamonds. In addition, most of the products are scented with assorted floral scents. The

combination of smell and packaging of the product are designed to delight the process

of makeup. The company believe that makeup is not just a must-procedure, meanwhile,

there are plenty of women who just makeup for the sake of makeup, they have long

forgotten the joy of makeup.

Another specialty in Jill Lewis beauty products will be the emphasizing of uses of cheek

color. Unlike the other cosmetic brands which are mostly emphasizing the eye and lips

make up. This has make Jill Lewis stands out from the other brands. A lot of girls have

ignore the importance of cheek color, however, Lewis has always think that a good

make up should be comprises from a good complexion.

1.1.3 Customer Profile

Segmentation Base Criteria

Geographical segmentation

Region Asia pacific

US

UK

Demographic segmentation

Age

Sex

Income

Occupation

20s to 30s

Female

$25,000 and above per annum

Professional, White-collar,

Undergraduates

Psychological segmentation

Need-motivation

Personality

Perception

Attitudes

Affection, sense of self-worth,

indulgence

Both intro and extroverts, low

dogmatic, love seeker, dreamers

High risk brand perception

Positive attitude

Psychographic segmentation

Lifestyle Trend watchers and status seeker

Use-Related segmentation

Usage rate

Awareness status

Heavy users, medium users, light users

Aware, enthusiastic and interested

Use-Situation segmentation

Time

Objective

Person

Work, leisure, morning and night

Personal appearance, gift and fun

Self, family, friends and peers.

Benefit segmentation

Sex appeal, self-confidence, social

acceptance, long-lasting, value for

money and fun

1.1.4 Resources

Labor Costs

Jill Lewis managed the labor cost which represents a huge portion of total cost and

made profit in 2008 by using the cost and benefit analysis model. The company used

the compressed workweeks to save labor cost without cutting down layoffs. The

company was very careful on selecting and hiring the right person that were highly

productive workers, not slackers, remaining on the payroll so that it can save the cost

on recruiting and training new staff. When the company faced the capital issue, it would

reduce the contributions to retirement and health care plans temperately. The company

has already cut overtime and travels, as well as purchases of office supplies and

equipment.

Human Resources

The company did certain activities for human resources management. It provided the

free training for the best employees. The people who had good performance may get

opportunity to go abroad for training. The company was fully aware of the personnel

policies which conform to current regulations. Based on the Maslow’s Hierarchy needs

model, the company modified the employees’ needs well and conduct the activities to

make them highly motivated to increase the work efficiency.

Raw Materials

To better control the quality of products, the company used the Just- in- time Supply

Chain Planning model to decrease the waste during the assembly processes. We

minimize the production line to reduce the waste of resources and cost. And we use the

simple management structure to reduce the complexity and form the transparency. By

using the Internet, we can build a better supply networks to improve the effective and

efficient production.

1.1.5 Management Style

Jill Lewis has built the free and harmony working environment for the staff to show the

ideas and opinions, almost like the US style. The higher authorities do not interference

in the subordinates’ affairs. All the subordinates can make their own decisions and

implement their power without considering too much. It was guided by the model of

leadership continuum (Tannebaum and Schmidt, 1973). The model is as follows:

Increase managers’ performance

By using this model, managers can fully participate in running business. They can get

more motivation and perform better on the task. All of them should take high pressure

and have the high skill and knowledge to deal with any situation in a short time. More

rights offered, more work should be down.

Increase employees’ performance

Jill Lewis uses the reward power from the five bases of social power of French Raven.

Every employee can get the reward based on the performance. It means that you work

harder and contribute more; the company will pay you more. But the bad performance

will be judged by the coercive power. It also offers the expert power for those people

with high education level and skill.

1.1.6 Organization

The employees in Jill Lewis are not just workaholic, but also working for the same

intention about the company under the management by objectives (Peter Drucker,

1954). It is based on the leadership continuum management style which improves the

integrated marketing communication of the company. It is useful to guide the

employees to the same goal so that it can specific objectives to each member and let

everyone involve the decision making process to build the concept about the company

objectives in their minds. No matter what they thinking and doing, all the things will stick

with the right direction. It improves the efficiency of business.

1.1.7 Financial Limitations

With the gloomy economic environment and devaluation of the American dollars, the

company still kept good increasing on the sales. The sales increased about 11.4% in

the second quarter of 2008, about $368,000,000. After adding the financial investment

from the foreign cosmetic company, our total profit increased 6.1%. The EBIT was

influenced by the cost of reorganization plan. It decreased from 10.5% to 10.1%. The

company got the total profit from the market share about $24,000,000. Compared with

last year, the company increased $18,000,000. We will increase the budget for the

development of products. Overall, the budget will be added about $450,000,000.

Lack of capital

Jill Lewis may face the financial limitation on the increasing cost of raw materials. For

expanding market in Malaysia, there will be high cost and lead the company lack of

funds.

Lack of financial support

The gloomy economic environment may influence the foreign company’s investment on

the product development which will affect the total sales. They may hold their money for

emergency on the economic changes. It will increase the pressure on the financial

support.

Lower consumer purchasing power

The consumer may not want to purchase a lot. There will be fewer sales in the luxury

cosmetic products. The company has to do certain promotions to attract the sales.

1.1.8 Management and Marketing Skills

The company is specialized in the product area

It mainly focuses on the product development and forms the brand image in the

cosmetic industry. The cosmetic products target on the young ladies who pay more

attention on the fashion area. The company try to build the special brand image by

added the unique, fantasize, eye-catching and floweriness and classic features on the

product. And R$D department may get the inspirations from different areas of arts in

the different period, for example, the vintage arts during the period of Renaissance, rock

and roll music style. Its main goal is to come out with the product which can help the

girls to make the beauty dream come true and let the ladies have their own special

charm.

1.2 Home Country Constraints

Social Getting more youngster use of the cosmetics product is because

of the cosmetic product has become the necessity goods in daily.

The men are getting to use of cosmetics product due to society

towards men using cosmetic product as an image and style for

the men.

Figure1: Market segmentation for cosmetics sector

(Source:http://www.smartcompany.com.us/Premium-Articles/

Industry-Trends/20080207-cosmetics-toiletries-

industrytrend.html)

Due to the higher purchasing power fall into category of baby

boomers, therefore the cosmetic company did segment in this

market.

Most of the women (45-55yrs old) income level disposable so

that cosmetic product has been segment for this category profile

with premium product.

Legal The two important laws pertaining to cosmetics marketed in the

United States are the Federal Food, Drug, and Cosmetic Act

(FD&C Act) and the Fair Packaging and Labeling Act (FPLA).

FD&C Act is to check the product has meets the standard

requirement and protect consumers from health hazards and

deceptive practices.

FPLA is to avoid misleading customer to purchase, therefore the

producer must make a labeling which is stated the contained and

date of manufactured.

Economic In cosmetics industry has rapid growth in this few years, 2009

has growth 3.3 % it achieved to $ 1.9billion.

Figure 2: US Cosmetics industry performance

(Source:http://www.smartcompany.com.us/Premium-Articles/

Industry-Trends/20080207-cosmetics-toiletries-industry-

trend.html)

The industry has grown at an average annual rate of 3.4% over

the five years to 2007 to 2008.

Figure 3: US household Income levels

(Source http://www.census.gov/hhes/www/income/income.html)

Household income level from year 2001 -2007 was increase due

to the economic recovery and growth.

Political North American Free Trade Agreement between the United

States, Canada, and Mexico (NAFTA) entered into force and it

creates the largest free trade area.

Government has set up United State Animal Welfare Act is to

against cosmetics producer test the cosmetic product with

animals.

All animals used in biomedical research must be bought from

vendors licensed by the U.S. Department of Agriculture

Technology US have the technology for cosmetics sector with reviews of

latest, Up-To-Date Safety Research to make the product reach a

standard requirement such as ISO 9001.

Determinations of possible ingredient toxicology.

The technology which able to evaluation & testing of human

health impacts to provide the safety of the using cosmetics

product.

Testing and evaluation performed by scientists trained in product

safety.

1.3 Host Country Constrains

Economics Malaysia health and beauty market is growing

rapidly.

Increasing of purchasing power, standards of living,

level of demand and sophistication of consumers.

According to trade source, the cosmetics and

toiletries industry recorded retail sales of $857 million

in 2006, while sales volume is forecast to hit $1.1

billion by 2010. Cosmetics products attributed more

than 20% of this.

Estimate spends US$500 million annually on

cosmetics.

Political / Legal All the cosmetics in Malaysia must be registered

under

o Category1: those products will be absorbed

through the skin.

o Category 2: others cosmetics product

With the Drug Control Authority, National

Pharmaceutical Control Bureau of the Ministry of

Health. (The Control of Drugs and Cosmetic

Regulations 1984 Act)

Manufacturers, importers and wholesalers must be

licensed before import, manufacturer and sell the

cosmetics product. (The Control of Drugs and

Cosmetic Regulations 1984 Act)

All registered product must be labeled according to

the stipulating labeling requirements. (The Control of

Drugs and Cosmetic Regulations 1984 Act)

Competitive L’OREAL (M) Sdn Bhd

Procter and Gamble

Estee Lauder

Shiseido Co. Ltd

Legal of Technology HALAL certified cosmetic and toiletries product.

Rice based cosmetic – natural based ingredients

rising in Malaysia cosmetic and toiletries market.

NANO Technology.

Culture HALAL Cosmetics – formulated without animal-

derived emulsifiers or gelatin and alcohol.

Structure of

Distribution

Department Stores

o Metrojaya, Isetan, Jusco, Pakson.

o Premium Lifestyle Product such as Shiseido,

Kanebo, SK-II etc.

Specialty Stores

Main channel for premium lifestyle product such

as The Body Shop, Sasa, L’occitane etc.

Geography Whole Malaysia, major in Klang Valley, Johor

Bahru and Penang.

Competition

L’OREAL (M) Sdn Bhd

Market Leader in cosmetic market since

2001.

Strength financial power and invest in a large scale into its research and

development.

25 international brands divided into 4 categories: - consumer products, active

cosmetics, luxury product and professional products.

Procter & Gamble

Understanding consumer’s habit and needs.

Invest heavily in research and development.

Highest achievement in technology and

applying it to consumer products.

Estee Lauder

World’s leading marketer of prestige beauty and cosmetics.

Over 20 well-known prestige brand cosmetics

and toiletries product.

Superior quality, continued innovation and

improved speed to market.

The Best New Eye Treatment Beauty Award.

Shiseido Co. Ltd

3 H – High quality, high service, and high

image

Effective customer relationship

management.

Strong distribution strategy.

2.0 Marketing Mix – 6P’s

2.1 Product

2.1.1 Product Positioning Strategy

The company’s products are positioned as a high-prestige brand and are sold through

the department store and specialty store. The brand has been enormously popular

among the target group of women in their 20s, and it is characterized by a unique image

of sweetness that incorporates both innocence and sexiness.

2.1.2 Product Life Cycle

Jill Lewis is on the early stages of the product life cycle, where the company’s product is

conceptualized and first brought into Malaysian market. Since Jill Lewis is not known to

the Malaysian public, the company seeks to build product awareness and develop a

market for the product.

Advertising is crucial during this stage, so the marketing budget for Jill Lewis is often

substantial. The company is using the rapid skimming to build awareness of its product

among the consumer. The rapid refers to the speed with which the company recovers

its development costs on the product – the strategy calls for the new product to be

launched at a high price and high promotion level. According to Philip Kotler, this is the

best work when the new product is unknown in the market.

Besides than marketing strategies, sales promotion is important when the product is in

the introductory phase. The company seeks to build product awareness and educate

customer about the product through sales promotion, examples like sampling, rebates

or coupons.

2.1.2 Product Design Strategy

The company products will be emphasizing in the uses of cheek color. Unlike the other

cosmetic brands which are mostly emphasizing the eye and lips make up. This has

make Jill Lewis stands out from the other brands. A lot of girls have ignore the

importance of cheek color, however, Lewis has always think that a good make up

should be comprises from a good complexion.

Another specialty in Jill Lewis beauty products will be the emphasizing of the packaging.

The package of the products is like “princess crowned jewel” and uses both the modern

and retro element in its design. The products uses a lot of crystals, mirrors, flower

prints, light and soft tone of colors. Besides, the design ideas are mostly generated from

the diamonds. In addition, most of the products are scented with assorted floral scents.

The combination of smell and packaging of the product are designed to delight the

process of makeup. The company believe that makeup is not just a must-procedure,

meanwhile, there are plenty of women who just makeup for the sake of makeup, they

have long forgotten the joy of makeup.

2.1.4 Product Quality Decision

The making use of the best ingredients and the latest trends in the world of beauty, the

company has established itself as a brand for a long time and is a safe and professional

choice to go with if consumers are looking for a great product and looking good for a

reasonable price. The company using active ingredients that do not only offer care for

the skin but also giving the best in colors and textures science and beauty help

customer to transform to be the best that they can be.

2.1.5 Product List

Product List

Product List

2.2 Pricing

Jill Lewis is positioned as a high prestige brand due to its unique value-added products

features.

2.2.1 Valued-based Pricing Strategy

Jill Lewis cosmetics are being priced based on consumer’s perception of the brand

value, in the other words; the company adopted the value-based pricing strategy. Big

monies have been paid out to advertise and promote through celebrities endorsements,

public relations and etc. As a result, the brand is highly exposed, generated high-

awareness and established a well-known and highly reputable brand identity among the

other brands.

2.2.2 Market-Skimming Pricing Strategy

Jill Lewis has endorsed a market-skimming pricing strategy in setting the new product’s

price. Jill Lewis is very confidence in their products quality and features, therefore the

new product price will be aligned with the other products, not to be reduced or set at a

lower price to attract consumers as this might affect the value perception of consumer

which is high price equals high quality. And, often results showed that consumer are

more than willing to pay high price for the new Jill Lewis products.

2.2.3 Product line pricing strategy

Jill Lewis has also practiced the product line pricing strategy whereas the price is based

on the different features of the products. For example, the price range for the base

make up products is between RM 200 to RM 300 and above. Meanwhile, the eye

makeup products are ranged between RM 100 to RM300 and above.

2.2.4 Discount and rebates pricing strategy

The company does not encourage the use of discounts or cash rebates, as these

promotional pricing will create a “deal-prone” customer base which will wait until the

brand go on sale before buying them and yet the constantly reduced prices will erode

the brand’s value in the eyes of consumer. Jill Lewis has less discounts on the products,

however, they offered a lot of value-buy promotion sets, where the price are being

lowered when the consumer purchases more.

2.2.5 Product Price List

Product Price

Basemake Moist Silk Powder Foundation (SPF15/PA++) RM 260

Color Control RM 220

Stick Concealer RM 210

Moist Silk Liquid Foundation (SPF18/PA++) RM300

Loose Powder RM330

Pure Lasting Makeup Base (SPF15/PA++) RM220

Pressed Powder RM260

Eyes Jelly Eye Color (10 Colors) RM160

Brilliance Eyes (4Shades x 6Variations) RM370

Eye Liner Pencil (2Shades) RM150

Illuminance Eyes (4Shades x 6Variations) RM370

Liquid Eyeliner (7Shades) RM185

Eyebrow Pencil (3Shades) RM150

Extra Curl Mascara RM 220

Seductive Eyes (4Shades x 5Variations) RM370

Eye & Lip Makeup Remover RM 130

Cheeks Mix Blush Compact (4Shades x 9Variations) RM 330

Blush Powder RM 310

Lips Jelly Lip Gloss (12 Colors) RM 160

Lip Liner Pencil (6Shades) RM 150

Lipsticks (12Shades) RM 210

Lip Luster (20Shades) RM 210

Fragrance Eau de Toilette RM 280/RM

340

2.3 Promotion

Jill Lewis has adapted few of the strategies from the home country carry to the host

country. Jill Lewis has choosing the Malaysia as a host country and focus with the

strategies for promotion:

I. Advertising

II. Public relation

III. Online

IV. Sales promotion

Hence, a promotion strategy actually for Jill Lewis is not only promoting the product to

consumer but Jill Lewis wants to communicate with the host country consumer aware of

Jill Lewis product. Jill Lewis is a premium product therefore it would not do so much on

promotion is more on recognition and building relationship.

2.3.1 Advertising

Traditional Media

Jill Lewis will use the mix media

(traditional media and electronic

media) to advertise the product in

host country.

Jill Lewis more concern about to

communicate consumer in host

country by educate consumer about

the product and build relationship

with the consumer.

Jill Lewis found out that in Malaysia

most of the people have a used to

buy newspaper. Therefore Jill Lewis

will provide the advertising in

newspaper and give rebate voucher

to the newspaper reader as a 1st

introduction.

Magazine

The magazine of InTrend and

female will only the one of Jill Lewis

appoint magazine because of this

magazine more on premium

product and reader are getting

increasing and this more suitable

for the Jill Lewis product image.

A apart from that Jill Lewis has

chosen Taylor Swift as brand

ambassador due to Taylor Swift is a

loyal consumer of Jill Lewis and she

is a singer artist.

TV and Big Screen

Jill Lewis also using the TV as a

media to reach out attract more

customer and make desire to the

TV watcher is also lead the people

from unawareness to awareness

stages or awareness to desirable.

Jill Lewis using the latest

technologies advertising in Malaysia

there will be out of home

advertising, this out of home

advertise more focus on big screen

TV and Jill Lewis has appointed Big

Tree company to proceed.

2.3.2 Public Relation

Advertorial

Jill Lewis will have a series of

advertorial in newspaper to

introduce Jill Lewis cosmetics

product and benefit of the product

also the look up Jill Lewis product

never had in Malaysia market

before.

Taylor Swift, Jill Lewis ambassador

will come to Malaysia for the 1st

store opening and she will have an

interview for after using the Jill

Lewis product.

Events and Celebration

Jill Lewis will organize event will

the shopping centre such as Mid

Valley Megamall. Jill Lewis will

hold an event for the model show

and carrier the product to the

people and makes them to

purchase.

Beside this, Jill Lewis also will

hold a party of princess in

Zoukclub and will have a theme

day for the girls who want to be

princess.

Online

Jill Lewis will have the online based

forum, for the consumer advice to

make up, enquiry for doubts, feedback

for the products and improvement or

innovate the new product.

Jill Lewis also provides the basic

make up process video in the

webpage for consumers who have no

idea about make up to learn.

Jill Lewis will updated the news and

events through the online however Jill

Lewis choose not selling the product

by online is to make sure customer

won’t get cons and get further details

in Jill Lewis store.

Jill Lewis will send the email to

consumer and new customer about

the promotion, other than that, Jill

Lewis has assign an online club in

Twitter to convenient members to join

the club also get the brand

awareness.

2.3.3 Sales promotion

Discount

For 1st time purchase we will selling

a small pack for the consumer have

a trial for the product or we call as

introduction kit for Rm180 include

( mascara, eye liner, foundation,

and lip sticks)

Jill Lewis will have the VIP card for

consumer. VIP members are able to

enjoy 30% discount for 30% and

receive a monthly catalogues from

Jill Lewis.

Rebates

Jill Lewis will have the voucher

rebate for the newspaper reader.

Jill Lewis will have the gift for the

consumer who has purchase more

than RM500 will get mystery gift by

Jill Lewis.

In addition, Jill Lewis will use AIDA model for the advertising because of the make target

audience pay more attention to Jill Lewis product from unawareness stage to aware of

Jill Lewis product in Malaysia. Beside this, Jill Lewis use ambassador Ms Taylor Swift to

create a reputable image therefore makes the target audience more interest with the Jill

Lewis product. Moreover, Jill Lewis has bring in a lot of variety series of cosmetics

product and the price are reasonable therefore lead target audience have desire to

having Jill Lewis product. Lastly, when target audience take action they will be enjoy of

VIP treat or the event which held by Jill Lewis.

2.4 Place

2.4.1 Channel Description

Jill Lewis’s cosmetics products are mainly focus on Klang Valley, Johor Bahru and

Penang. The products are distributed into the different department stores in Malaysia.

Our major department stores are set in Metrojaya, Isetan, Jusco, Pakson.

In order to create attractive brand values, Lewis is flexible in addressing diversities to

each channel. But the main channel level is that the product delivered directly from the

manufactures to the store and finally to the consumers. The cosmetics products are

distributed in Malaysia through exclusive distribution system, horizontal management

system.

Klang Valley Location Map

2.4.2 One of the Jill Lewis’s department store’s Floor Map in Mid Valley

Jill S

tuart

Clinique

Dio

rL’OREAL

An

na S

ui

Contact details:

Mid Valley City, Lingkaran Syed Putra

59200 Kuala Lumpur, Malaysia

Information Counter :( 603)2938 8888

Website: www. jilllewis.com.my

2.4.3 Department stores:

2.5

People

2.5.1 Types of recruitment:

In order to choose the right

person at right position, Jill Lewis

uses the external

sources

recruitment. The

company posts the

job requirements

on the

advertisements in

newspapers and

television to cover a wide area of market and the scattered applicants can get

information from advertisements. As to find the professional person to do the job, the

company also uses the employment agencies. It also set the Campus Recruitment to

encourage the fresh applicants, like the fresh graduates or postgraduates in the

educational institutes. For certain time, Jill Lewis will find the specialists people to

supply the manpower to the factory or manufacture plants. If the people have the

recommendations from certain company and have working experience, it is also

accepted by our company. The recruitment requirements as follows:

JAYA JUSCO

METROJAYA

ROBINSONPARKSONNISETAN

Types of person Requirements

Stores Manager

prior selling experience and supervisory experience

helpful in retail, cosmetics and management

Proficient in computer business-related computer

software (Microsoft Word, Excel, Access, etc.)

Excellent supervisory, analytical, reasoning and

communication skills

effectively train, coach and develop new and

incumbent associates

preferred degree

Supervisor

Minimum High school diploma

Familiarity with accounting policies, procedures, and

budget management, capital and business financial

processes desired. 

Beauty Experience- Cosmetic, Skin

Large volume or multi-store management experience

Passion for fashion/cosmetics

Excellent communication and leadership skills

Computer skills (Microsoft office)

Ability to work evenings and week ends

Sales Assistant

Diploma and 3 language speaking

Sales experience preferred

Customer service skill

Cosmetic knowledge and make up skill

Energetic and dependable

Self-motivated

Storekeeper A high school diploma

one to two years of applicable experience working with

detailed inventory/stock

Maintains records on same Issues stock upon

authorization.

Processes paperwork required to receive stock, issue

stock.

Computer skill

2.5.2 Training

Training process

Jill Lewis has treated their employees as individual and provides the training and

education for them. The company is management by objectives so that the employees

are motivated by the fair treatment. The company enhances awareness and creates a

sense of career direction, and the necessary knowledge and skills. They will get the

reasonable promotion based on ability and training programs.

2.5.3 Remuneration of staff

Jill Lewis’s Rewards its employees with the following Benefits & Incentives:

Fun, Fashionable, Fresh retail sales environment

Vacation & Holiday Pay (based on schedule & service)

Health & Life Benefits (for eligible associates)

Flexible Schedules

Growth and Opportunity in the nation's largest department store

Ongoing Training & Development

Employee Discount

Employee Appreciation Days

Industry Competitive pay

2.5.4 Stores’ Uniform

Uniform for store sales representative

2.6 Packaging

2.6.1 Packaging strategy

Today, cosmetics are more than just a makeup tool, they are decorative. Researchers

have shown that there is a close relationship between the packaging design and the

female consumer behavior or attitude towards the cosmetic products. Jill Lewis is

highly-famous for its unique packaging. The successful use of the stunning decorative

style of packaging has brought Jill Lewis stand out from all the other brands, it has

attracted millions of female consumer from all over the world and thus built up a strong

brand identity as the most princess-alike makeup.

Jill Lewis has specially assigned designers for the packaging decorations. Jill Lewis

cosmetics product packaging strategy is proven to be very successful as it is designed

to meet the female consumers’ emotional needs, increases product value and favors

the positive purchasing attitude of the female consumer. The packaging of Jill Lewis

cosmetics are mostly inspired by floral elements, diamonds, soft colors such as cream

peach and soft pink shades, laces and etc.

The packaging style includes the surface texture, design pattern, color used, shapes

and fonts. One of the most feminine and vintage packaging designs will be the design

of Jill Lewis fragrances. All the fragrances are bottled into heavy glass bottles, the

bottles are design to be like a diamond, as it is sensuous and has a facet curved glass

shoulder and an adorable stopper.

The packaging of the cosmetic products are not just decorative but are all carefully

designed according to their product features.

Forms of packaging Illustration Description

Glass Bottle The bottle form packagings are

mostly used for the liquid base

makeup and foundations and

makeup remover.

This form of packaging is very

suitable for liquid cosmetics. As it

will reduces the sensitivity of

temperature due to the heavy

glass and prevent it to be

deteriorate.

The cost for this packaging

(including fragrance) will be the

highest among the other

packaging due to its material.

Glass Bottle Jar This bottle jar form of packaging is

mostly used for the eye makeup

which is in creamy form.

As it will ease the space of storage

and also prevent the cosmetics

from deteriorated due to the heavy

glass.

Plastic Tube This tube form of packaging is

mostly used for the cosmetic

which comes in a smaller portion,

such as the mascaras, liquid

eyeliners and lip gloss.

This form of packaging is very

suitable as most of these wakeups

are needed very often in a day; as

ladies also retouch-up their eye

and lips makeup, therefore this

handy and light in weight features

enable the mobility of the cosmetic

products.

This plastic tube packaging has a

lowest cost as compare to the

others due to its low-cost material.

Mirrored Compact

cases

This form of packaging is mostly

used for the solid and powdered

cosmetics, such as the compact

foundation powder, eye shadows

and blushers.

This form of packaging is very

suitable as it is very efficient in

storage and handy.

The cases is provided with a glass

mirror, which is very useful in

applying the foundation, eye and

cheek makeup as compare to

applying a lip gloss where mirror is

an optional need.

As for the brand paper bags that been used in all the retail stores are all uniformed into

a rectangular soft pink color paper bag. The paper bag has a simple and elegant design

with brand name “Jill Lewis” printed in black font style. The stores have prepared 4

types of paper bags; extra small (4 inches X 3 inches), small (8 inches X 4 inches),

medium (10 inches X 5 inches) and large (12 inches X 6 inches). The sales person or

beauty advisor will choose the proper sizes of the paper bag according to the amount

and volume of purchases. Jill Lewis has also launched certain limited special edition of

paper bag due occasionally.

Paper bag Medium/Large – 8x4 / 10x5

Paper Bag Extra Large- 12 inches X 6

inches

Foundation Power Pouch

Brilliance Eye Boxes

Jelly Eye Color Boxes

3.0 Marketing Plan Development

3.1 Market Situation Analysis

The Malaysian cosmetic and toiletries market has registered a favorably rapid growth

over decades. As a result, the cosmetics and toiletries market has recorded retail sales

of RM 857 million in 2006; while the cosmetics product has attributes a total of 20% and

above to this.

The increase of consumer purchasing power and standard of living has encourages the

growth of cosmetic market’s demand. In addition, the market has once again being

stimulates through the increasing demand from the young consumer. The cosmetic

market has flourishes gradually as the teenagers are getting more aware of self

appearance and fashion trends.

Generally, Malaysian government does not intervene much in the import of cosmetic

and toiletries products; as no there is no import restrictions, licensing or quotas; except

an import duties of 20% to 30% on the powdered cosmetic and toiletries products and

hair preparations products.

However, Malaysia does have implement a strict governing on the safety issue of the

imported cosmetic and toiletries products. According to the control of drugs and

cosmetic regulations 1984 Act; all cosmetic products must be registered and inspected

by the Malaysia Drug Control Authority and National Pharmaceutical Control Bureau of

the Ministry of Health.

The Malaysia’s cosmetic industry has a merely saturated competition as there are more

new imported brands and well-established brands that appear in the market. The

industry leader will be the L’oreal (M) Sdn Bhd which owns famous brands e.g.

Biotherm, Lancome, Kiehls’ and Shu Eumura, the other competitors such as Anna Sui,

Shiseido and Estee Lauder. However, each brand has strived for succeed in their own

respective market, as the Anna Sui is targeted on younger consumer group; while Estee

Lauder targeted on middle age group consumer.

3.2 Objective and Goals

Quantitative Establish an estimate of 50 cosmetic counters in the

following department stores such as Isetan, Robinson,

Marks and Spencer, Jusco and Metrojaya within a year.

Aimed to achieve a 15% market size in local cosmetic

market.

Qualitative To achieve and maintain high brand equity from the

Malaysia market through media such as fashion

magazines and company forum website.

(http://forum.jilllewis.com)

Ensure quality customer relationship management from all

the sales person and beauty consultants through

consistent product training courses.

Marketing Increase advertising activities in TV, print media such as

beauty magazines, and internet (blog and websites

banners and pop-ups advertisements).

Implementing discounts promotion strategy through cash

discounts, membership rewards, and seasonal clearance

in order to generate a higher sales volume, brand

awareness and customer loyalty.

Set up marketing campaigns and involved beauty contest

sponsorship to increase brand awareness.

Conducting consumer surveys to receive feedbacks in

order to get a better understanding of consumer needs.

Finance To increase a 20% of net profit margin in the first quarter of

year.

To achieve a steady growth in annual earnings.

Estimate to attain RM 4.52 million of sales in Year 5.

3.3 Mode of Entry

3.3.1 Direct Exporting

Jill Lewis got the resources and supports from the company in US. After the company

does the market research about the cosmetic product industries, they choose the direct

exporting way to entry the Malaysia cosmetic market without using any international

marketing middlemen. The US supplier controls all the activities and promotions, and

collects all the feedback or drawback from the consumers. They also take direct

responsibilities for Jill Lewis cosmetic products sold in the Malaysian market.

3.3.2 Advantages of direct exporting:

Effective marketing strategy control Offers the greater control over the

entire export transaction and entitles

Jill Lewis to greater benefits.

Directly control the consumers’

market and do the R&D to improve

the quality of the product.

Closer relationship with the buyers

and the marketplace in Malaysian,

the management of whole process

will be easily conducted.

Systematic and comprehensive

information collecting

When Jill Stuart start to plan to

entry the Malaysian market, they do

the market research about the

environment related with its own

strengthens and weakness.

They choose the direct exporting so

that they can directly get the

performance of the products in

Malaysia market. When the new

products are issued, the company

may get the survey and analysis

report from the manufacture.

If the product is not accepted by the

market, the company can adjust the

developing plan to solve the

solution and satisfy the market

needs well.

It is also good for the company to

allocate the competitors information.

Jill Lewis’s competitors L’Oreal do the

Christmas promotion in the shopping

mall. The company can get to know

the information and quickly react by

doing the similar or better promotion

strategy to gain the sales.

Wider and in-depth knowledge about

the Malaysia market

Get to know well about any

changes happened in the supply

chain and toward to the end users.

Increase the knowledge about the

market by do more and organize

more which help them to better

understanding the market needs.

Consumers get to know the

company directly and feel more

secure in doing business with the

company.

The business trips for Jill may be

much more efficient and effective

with wider and in-depth information

about the market.

The company will have greater

flexibility to improve or redirect to

marketing efforts.

Reduce the contractual conflicts There will be fewer parties involved

in the process.

The exporter directly controls the

market without too many doubts

from other partners.

For the indirect exporting, there

may be the benefits between the

middleman and manufactures. The

middleman may get higher profit

from the channel, even the

manufacture get lower benefits.

There may be conflicts between

them. Direct exporting may not

have such problems. The company

has the same compliment so that

they can better achieve the

objectives without too much

arguments and work efficiency.

3.3.3 Disadvantages of Direct Exporting

Higher cost There will be high cost involve in

the marketing, distribution and

administration.

Since the exporter of US personally

handles every aspect of the

exporting process from market

research and planning to foreign

distribution and collections.

The organizational structure has to

undergo sea changes to support the

complex operations included in

direct exporting.

The company must shift its focus on

to developing a proper channel for

supplying the products.

It may add the cost into the product.

It has to suit the Malaysia market

and spend many to penetrate.

The Jill Lewis used the sales

representatives and agent in

Malaysia and choose the retailers

and suitable distributors those all

increase the cost of entry.

The firm is further depended on the

fluctuation of transportation costs.

High transportation costs can make

it uneconomical to get involved in

the import or export of the

cosmetics products.

Requires more manpower to build

customer base

It is not so easy to cultivate the

customer base in Malaysian market.

The company has to spend more

time and energy, even high cost to

do build the customer base.

For example, they should hire more

professional local sales

representative especially who work

on a commission basis to handle

the customer complaints.

But, those sales representatives

have no authority and risk or

responsibility of the products.

Difficult administer There will be disagreement

between purchasers and served

markets. For both of the partners

may have different views on

exported benefits.

The exporter control and manage

whole thing so that there may lack

of some concerns about certain part

of the expanding plan.

Servicing the business will demand

more responsibilities for every level

of organization.

The exporter is held accountable for

whatever happens and less buffer

zone. In terms of distance and

unfamiliar environment, Jill Lewis

has to do more market effort to

administer the organization.

Timing is critical. It is not easy for

Jill Lewis in Malaysia cosmetic

markets, even the market has been

already saturated by the high

foreign cosmetic companies.

3.4 Projected Profit and Loss

The next graphs show Jill Louise’s projected annual revenues and annual net profit over

a three (3) year period.

Detailed profit and loss projections are presented in the Appendix.

3.5 Projected Balance Sheet

The company anticipates maintaining a strong balance sheet.

Complete projected balance sheet details are shown in the Appendix.

3.6 Action Plan

Gant Chart

4.0 Implementation, Evaluation and Controls

4.1 Performance Objectives

To obtain a steady growth in sales profit and estimate to attain RM4.52

million sales in year 5.

To increase brand awareness through advertising and promotion.

Implementing customer relationship management to get a better

understanding of local consumer needs.

To increase the market share by achieve and maintain high brand equity,

and ensure quality customer relationship management.

4.2 Standards

Standard

s

Description Person In Charge

Product The Control of Drugs and

Cosmetic Regulations. 1984 Act –

product must be registered with

the Drug Control Authority.

HALAL certified product -

formulated without animal-derived

emulsifiers or gelatin and alcohol.

Qua Hong Zheng

Product Manager

Price Price Control Act 1946 – enforce

power as price controller to fixed

prices and charges.

Lai Zhong

Finance Manager

Promotion The Advertising Standard Authority

(ASA) 1977

The main tasks are to enforce and

encourages high ethical standards

Evelyn On

Marketing Manager

in advertisements.

Place The Control of Drugs and

Cosmetic Regulations 1984 Act -

must be licensed before import,

manufacturer and sell the

cosmetics product.

Qua Hong Zheng

Product Manager

People Employment Act 1967 – provide

benefits and incentives for

employees.

Koh Hui Fen

Operation Manager

Packaging The Control of Drugs and

Cosmetic Regulations 1984 Act –

product labeled according to the

stipulating labeling requirements.

Evelyn On

Marketing Manager

4.3 Measure Performance

Qualitative

Check on the daily and weekly sales report based on every counter.

Quantitative

Consistence product training courses.

Maintain and achieve high brand equity through media such as ads campaign

fashion magazines, and company forum website.

Marketing

Advertising activities such as blog/websites and pop-ups advertisement.

Promotion strategy such as cash rebates, member rewards, seasonal clearance.

Marketing campaign and beauty contest sponsorship.

Conduct survey, feedback from consumer and customer profile.

Finance

Annual profit and loss statement and balance sheet.

4.4 Correct for Errors

Error Solution

Price Jill Lewis has targeted consumer

for young generation. Jill Lewis

has set up at premium price for the

product. Not all our targeted

consumer range between 20 years

old to 28 years old is affordable to

purchase Jill Lewis product.

Jill Lewis might giving promotion

and discount to attract more

customer.

Other than that, Jill Lewis might

consider selling trial kit for

consumer to make them

affordable and enjoy with full set

of Jill Lewis cosmetic product.

Product The product range of Jill Lewis is

too less, and product most of the

time emphasis on summer session

therefore bring in to Malaysia

market.

Provide more variety of products

in terms of color, technology and

etc. The wider range of product

will be selected based on

suitable for Malaysia market. On

the other hand, the others

season will bring into Malaysia

but will be selected and new

product will be launching same

as home country.

Place Currently Jill Lewis only locate

department store in Malaysia and it

will cause difficult to getting Jill

Lewis product easily. Jill Lewis

also focusing only certain location

therefore some product might not

getting at the particular place.

Jill Lewis can be locating more

store in Malaysia to increase the

penetration of whole Malaysia, it

more convenience for customer

to get Jill Lewis product

everywhere.

Having specialty store available

for the Jill Lewis.

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