3. Marketing Strategy

3.1 Mission

Customer satisfaction is our ultimate goals.

Our mission is to become the highest sales in the market and affordable , fashionable and heathy BB cream in Myanmar that fully understands the skin need of Myanmar women in 10 Years.

To continue product modification and increase customer benefits

To provide best quality with affordable price in Myanmar market

3.2 Marketing Objectives

To develop brand awareness among targeted consumers in Myanmar.

To capture the large share of market

 

 From Year 2 onwards, whilst keeping on carrying out our marketing activities online, as a result of better cash flow (forecasted), we are planning to launch our product on TV shopping channels and invest heavily in billboard advertisement for increased brand awareness.

3.3 Financial Objectives

It will require a minimum volume of 18,000 Laikou BB Cream tubes to be sold at 13,000 Ks during each during the 2nd year so as to achieve the set targeted turnover amount.

During Year 2, the company should be able to generate positive cash flow and self-fund the business operation.

The financial objectives are to reach break-even point in quarter 3 and get the profit around 15 million kyats in Year 2.

3.4 Target Markets

a) Demographic

Profile Criteria

Gender - femaleIncome - over 3,600,000 MMK per annumAge - between 15 to 45 years oldOccupation – teenagers, employee, self-employee and houewives.Lifestyle - Internet Users

GEOGRAPHIC LOCATION

Target MarketYangon, Upper Myanmar, Lower Myanmar. The second and third tier cities and towns are within our marketing focus as well.

Lifestyles - Those who are very innovative and prefer setting make-up with one step only.- Those who love superior quality with fair price.- Those who prefer shopping via online.- Female of Young energetic and elderly business persons.

Social & CultureMyanmar women organization proudly use Ta-Na-Khar and they also enjoy to try Korea make-up style. BB Cream is therefore, will be their make-up of choice because of similar nature with Ta-Na-Khar.

3.5 Positioning

- To be well known branded BB cream among Korea skin care products- Need to be accepted by the users and less allergy to skin - Keep on developing healthy products and should be able to retain large market shares 

THE PACKAGING QUALITY AND DESIGN THAT LAIKOU PROVIDE TO CUSTOMERS IS VERY EASY AND COMFORTABLE FORM, SUITABLE FOR EVERY CONDITIONS.

*4.MARKETING TACTICS

4.1.1 BRAND NAME – LAIKOU BB CREAM

4.1.2 PACKAGING

*4.1.3 PRODUCTS

LAIKOU OFFERS SEVERAL COSMETICS PRODUCTS LINES LIKE BB CREAM, BEAUTY HAIR CARE OLIVE OIL SHAMPOO, ALOE VERA GEL ANTI ACNE TREATMENT, MEN’S OCEAN MINERALS SKIN CARE, LIQUID FOUNDATION CREAM..,ETC.

ALTHOUGH LAIKOU HAS A LOT OF COSMETIC PRODUCTS WITH GREAT QUALITY, WE WILL FOCUS ONLY ON BB CREAM ACCORDING TO MYANMAR’S MARKET DEMAND AND MARKET NEEDS

*4.1.4 MAJOR FEATURES AND BENEFITS Features Benefits

Korean brand Korean quality

Reasonable price with high quality Cost effective

Compact packaging design Easy to carry

One step setting method Time and energy saving, Convenient in rush hour

Suitable for all skin type Harmless and no allergy

Skin maintenance and treatment Useful for skin health

Long lasting Confident and attractive

*4.1.5 PRODUCT MAPPING WITH PRICE COMPARISON

E’tude House(12.4$)

The Face shop(12.39$)

Clinique(26.5$)

Estee Lauder(38$)

Laikou(10.9$) 

Maybelline (8.99$)

Shwe-Pyi-Nann(4$)

Taung-Gyi-Mauk-Mal

(3.5$)

Good Quality Bad Quality

Affordable/Practical

Expensive/Distinctive

Nature Republic(15.88$)

Holika Holika(34$)

*4.2 PRICING STRATEGY

• PRICING OBJECTIVES TO ACHIEVE

THE CONSUMER’S IMPRESSION AS REASONABLE PRICES AND AFFORDABLE QUALITY PRICES.

BREAKEVEN SALES WITHIN ONE YEAR.

• PRICINGSAME PRICE AS ASIAN TOP BRANDS

40% CHEAPER THAN EUROPEAN BRANDS

Break Even Analysis of Laikou BB Cream

Yearly Units Break-Even 2,558 Units

Yearly Sales Break -Even 33,254,000 Ks

Assumptions;

Average Per-Unit Revenue 13,000 Ks

Average Per-Unit Variable Cost 9,750 Ks

Estimated Yearly Fixed Costs 18,000,000 Ks

Benefits

Costs

*4.3 DISTRIBUTIONLaikou

Manufacture

Myanmar Laikou Distributor

Brand Showroom

Yangon Consumer

Wholesaler

Upper Myanmar

Mandalay, Nay-Pyi-Taw, Taung-Gyi Reseller

Lower Myanmar

Maw-La-Myaing, Pa-Thein Reseller

Online Shopping

Financial (Sales Forecast)

 

Quarter 1 Quarter 2 Quarter 3 Quarter 4 Year 2 Year 30

50,000,000

100,000,000

150,000,000

200,000,000

250,000,000

300,000,000

350,000,000

Teenager Employee Self Employee Housewife Total Sales

Quarter 1

Quarter 2

Quarter 3

Quarter 4

Year 2

Year 3

- 10,000,000 20,000,000 30,000,000 40,000,000 50,000,000 Billboard TV ShoppingRe print of Advertisement FM radio AdvertisingOnline Marketing

Marketing Expense BudgetDescription

Quarter 1 Quarter 2 Quarter 3 Quarter 4 Year 2 Year 3

Online Marketing3,600,000 3,600,000 3,600,000 3,600,000 14,400,000 14,400,000

FM radio Advertising360,000 1,550,000 1,550,000 3,400,000 936,000 936,000

Re print of Advertisement - Daily Newspaper

360,000 2,954,000 3,150,000 6,300,000 1,440,000 1,440,000

Re print of Advertisement - 7 days Weekly Journal

- - 456,000 12,100,000 1,824,000 1,824,000

TV Shopping- - - - 17,000,000 17,000,000

Billboard3,600,000 3,600,000 3,600,000 4,600,000 14,400,000 14,400,000

Total Sales & Marketing Expenses 8,700,000 8,700,000 17,000,000 30,000,000 50,000,000 50,000,000

Percent of Sales67% 67% 65% 46% 21% 16%

Net Contribution (10,290,000)

(10,290,000)

(11,180,000) (1,950,000) 47,380,000 91,840,000

Contribution Margin/ Sales-79% -79% -43% -3% 20% 29%

Marketing ImplementationICM Activities Quarter 1 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Year 2 Year 3

Online & Social Media Advertising

Online & Website Marketing √ √ √ √ √ √

AdvertisingBrochures and booklets √ √ √ √ √ √

Re print of Advertisement - Daily Newspaper √ √ √ √ √ √

Re print of Advertisement - 7 days Weekly Journal √ √ √ √ √ √

Billboard √ √ √ √ √ √

Public Relation

Launching Event √ √ √ √

Direct and Database MarketingRadio Advertising √ √ √ √ √ √

TV Shopping √ √

Distribution Activities Quarter 1 Quarter 2 Quarter 3 Quarter 4 Year 2 Year 3

Outdoor activities √ √ √ √ √ √

Indoor activities √ √ √ √ √ √

Product arrive in Myanmar √

Send product to customer √

Pricing Activities Quarter 1 Quarter 2 Quarter 3 Quarter 4 Year 2 Year 3

10 % volume discount to customer √ √ √ √ √ √

Marketing Organization

 

Marketing Department

Brand Events & PR Online Marketing Regional

Marketing

Upper Myanmar Lower Myanmar

Customer Service

Marketing Research

HOW TO CONTROL ?

Control

Revenue

Approach to New

products

Expenses

Customer Satisfactio

n

WAYS TO GET MORE PROFITS

Contingency Plan

 

Diff

icul

ties &

Ris

k

Human Resources

Customer Complaints

Shortage

Financial Constraints

Competitors

Taste of Customers

https://jessicamudditt.com/2013/12/18/democratising-beauty-in-myanmar/

http://www.elle.com/beauty/makeup-skin-care/tips/g8056/best-bb-creams/?slide=9

http://www.tenbestreview.com/beauty-health/top-10-best-korean-beauty-balm-cream/

http://www.amazon.com/dp/B00KI9Z1U2?tag=totethbe-20

http://www.etudehouse.com/index.php/precious-bb-cover-bright.html

https://holikaholika.ca/makeup/bb-cream-makeup/naked-face-fitting-bb

http://www.thefaceshop.my/shopping/Products/Category2023/Brand0/0/

Reference