ShiseidoFuture Solution Total Revitalizing Cream

Survey Research Report

March 2005Monique Choi, Miles Perdiguerra, Irene Shang,

Orlando Shih, Judi Washington, Fei Xu

1872 – Tokyo, Japan, western style pharmacy

Entrepreneurial, pioneer, visionary

Management Principles (1921)

R&D Oriented – combine nature and science

Diverse Products - skin care, make up, fragrance, etc.

4th Largest Cosmetics Company

FY’04 Sales $5.7 billion

Marketing Strategy – “High Quality, High Image, and High Service.”

Company Profile

“Welcome to a world of beauty and well-being”

Target Customer

40 – 60 year old women

Annual household income $60K+

Working women, professionals

College educated

Active lifestyle

Believe in new technology

Product Profile

Retail price $225 USD

1.8 oz. (50 ml)

Packaged in an elegant black-green glass jar adorned with gold flecks; a plastic spatula is included

More than 30 ingredients, including two potent ingredient groups

Inner Network Firming Complex

Hydro-Infusion Complex

Paper 1 Conclusions

The research should help Shiseido to find out how to:

Verify target customers

Reach out to the potential customers

Enhance the educational and promotional programs

Differentiate the products

Seek clear product positioning

Survey Introduction & Objectives

Product Selection / Satisfaction

Product Promotions

Distribution Channel

Price

Reason / Frequency of Use

Brand Loyalty

Survey Questions

Gender

Age

Annual household income

Children living at home

Skin concern

Skin care routine

Skin care brand

Level of satisfaction

Product improvement

Purchase factors

Anti-aging brand

Purchase location

Information resource

Purchase frequency

Expenses

Survey Limitations

Computer with Internet access

Limited number of respondents (N=89)

Limited time

Limited number of options for each question

15% male and 85% female

Survey Research Results

75% of respondents were women

66% were all females between the ages

of 25 and 44

Income level was evenly distributed among all categories

Female respondents were almost equally concerned about

wrinkles and fine lines (32%) as they were with acne (25%)

64% of respondents indicated they did not use one of skin

care brands named in the survey

Survey Research Results(Continued)

All but one Shiseido user gave the company neutral to positive feedback

81% believe their skin care products could improve with better pricing, more promotions and discounts, better availability through channels

An overwhelming majority purchase skin care products from department stores (42%)

Magazines are the main source for skin care information (38.2%)

Shiseido constitutes a higher market share among respondents than other companies in the survey, but 40% do not use anti-aging products at all

50% of Shiseido skin care product users also use their anti-aging products

Buying frequency is evenly distributed

64% spend less than $500 per year on skin care; only 7.9% spend more than $1,000 per year

Survey Research Results(Continued)

Target consumers:

Current Shiseido consumers

Younger women: 25 - 44 years old range

Non-users of anti-aging products

Recommendations

Recommendations (Continued)

Products:

Target younger consumers: Younger image New product extension with lower strength Different packaging Reformulated to address acne concerns

Quality and effectiveness guaranty: Product quality control Research and development (R&D)

Marketing and promotion

Build a close relationship with current customers Communicate with potential customers Strengthen the positive, unique brand image.

IMC

Celebrity spokeswomen: i.e., Charlize Theron Sponsor events of interest to the younger target market Corporate partnerships Magazines popular to the younger target market

Recommendations (Continued)

Distribution and Channels More availability through channels → department stores High-end retail channels Properly trained employees

Price $225 for Future Solution → too expensive? People want lower prices and more discounts Need to maintain luxury image

Smaller package with lower price Free samples and consultation Frequent user program Lower price for the younger version of Future Solution

Recommendations (Continued)

Thank You

Questions?