CAPSTONE

SKIN MANAGEMENT Part 6- Final Draft

FASM-430

Alex Wang

Prof.Donald Levy

OBJECTIVES

To simulate a skin management store opening

Conduct marketing research on Harbin's skin management store Create a successful and strong brand image that align with the target market

PROJECT BRIEF This business is the extension of my mother's plastic surgery Hospital. This project will demonstrate the marketing plan that will be used to attract younger generation consumers to the brand new skin management store.

Secondary Research

Industry Trends

Skin Pro Function

:

Thermage FLX

Deep Cleanse Machine

The average price in Harbin

Function

: $150-$300 : $238

:

Fifth

-

Generation Facial lifting machine

The average price in Harbin

My Store

My Store

: $2,180

: $1,500- $3,000

at my store

Valmont Pola BA Serie : $180-$360 :$168- $298

Swiss High The average price per visit in Harbin My Store

end Skin Care Product line

( (

Average

Average

Price varies Price Varies

) )

Korea High

-

end Skin Care Product line

The average price per visit in Harbin My Store

: $100-$300(

Price Varies

)

: $100-$300(

Price Varies

)

Influencing Factors

TOP

3

'

FACTORS BASED ON MCKINSEY CHINA S REPORT THAT

DRIVES MILLENNIALS AND GEN

-

Z CONSUMERS PAYING FOR SKIN

MANAGEMENT SERVICE

ADAPTIVITY Chinese consumers are showing an increasing preference for local brands that demonstrate strong capabilities in leveraging new technology and adopting fashionable styles

Online Comment 56.68% of Chinese relies on customer rating when purchasing goods &product.

Product &Service -

Young consumers in high tier cities are willing to pay a significant

,

premium for quality goods and experiences including up to more for premium beauty brands

.

25%

Influencing Factors

CHANGING LOCAL LANDSCAPE By being the first skin Management store that promises to sells authentic beauty

&frgrance

Beauty

&Frgrance

will add strength factors to the business

Online Marketing Use Different social media platform is the most

-

effective way to attract Millennials and Gen Z Online Marketing

consumer to the store

Use Medium-Scale Influencers Chinese Companies are using more resources for

-

credible authentic middle Scale influencers than mega influencers

.

Medium

-Scale

influencer

Promotion Membership Promotion

Membership promotion is the most effective way to increase the ticket sale for existing customer

Holiday Promotion

Holiday Promotion is a very effective way to gain new customers at a low cost.

Annual Promotion

Online Promotion is necessary because most of the influencer takes a percentage of the sales made by the customer that are attracted by those influencer's social media content

Beauty Industry

MARKET RESEARCH

The beauty industry in China has a $7,910 Million Market with an average market growth rate of 18%(2020). The beauty industry

took

the

shortest

time

to

recover from the pandemic. As Millennials and

Gen-Z

becoming

the

primary

consumers of China, it is critical to open a store that is target directly to these groups of people with the right products and services.

PRIMARY RESEARCH

The research was based on a questionnaire

304 people between the ages of 20-36 in the city of Harbin .

67% are millennials 33% are Gen-Z 56% of them think they will be spending a lot more on beauty - related product & Service in 2021 28% of them think they will be spending more on beauty - related product & Service in 2021 12% of them think they will be spending the same on beauty - related product & Service in 2021 4% of them think they will be spending less on beauty - related product & Service in 2021 of

FOCUS GROUP KEY FINDINGS

The Millennials in Harbin city are the primary

.

consumers now They are well educated

,

, . for 20% of Harbin ' s total population , representing 2.75 million consumers .

Although Gen - Z is not the primary consumer in Harbin city , They still account for 18% of the population . Which is 2.3 million consumers . So marketing towards this group will also benefit the store in the long run .

My target consumers are really tech - savvy open minded and tech savvy They account

so it is important to market online to reach

. (88% of them shop online at least 3 times a weak ) Millennials and Gen - Z ' s top concern when out to them

shopping online is the product quality and product authenticity

.

They care about sustainability but only

3%

of them are willing to pay extra money for being sustainable

.

FOCUS GROUP KEY FINDINGS

CONSUMER RESEARCH

Consumer Research DEMOGRAPHICS Males and females between the ages of

-

20-36

Middle to high class individuals in society Average income from

$3,000 and up

psychographics -

Non Price conscious but experience conscious Mature but young brand loyal Rely on Online rating and comments

behavior Spend their time heavily on their phone to browse through the internet Spend more than half of the money they make Prefer customized products and services

,

Supports sustainability wants to be a want to pay for being sustainable Influenced heavily by social media

"sustainable" person but does not

Shopping Preference Where

: Harbin city and online(Beauty product)

: After researching online : Online research and in-store experience : Always for products and services provided by the

When How

Why

skin management store to be effective and make them look better

.

Consumer Persona Name : Ivy Yang Age

: 24

: Harbin : Social Media Influencer : $ 250,000

Location

Occupation

Income

Marital Status : Single Motivations : A hard

-working young lady who often

engages in activities and buys products that promote her great looking

.

Challenge : She likes to work at night

.

, and it is not good

for her appearance in the daytime She is struggling to find the right skin product for herself

.

Decision Making : She researches heavily online before

.

making an online purchase or goes to the store She is willing to pay a great amount of money for beauty products that work great for her

.

INTERGRATED MARKETING PLAN

-

High quality pictures of the store will be taken by the photographer prior to the opening of the store profile page pictures

Marketing Plan

)

. ( Public Comment

Contract with influencers will be signed before the opening of the store

. (Little Red Book, Oasis, and Tik Tok)

The tease pictures and videos with store location and opening date will be posted prior to the opening phase to attract customers to come to the store

.

Online marketing key performance indicators will be tracked based

,

,

on views clicks and reposts on different social media platforms

.

ADAPTIVITY Chinese consumers are showing an increasing preference for local brands that demonstrate strong capabilities in leveraging new technology and adopting fashionable styles

SOLUTIONS My store will have the most updated technologies that will determine what kind of skin type the customer has and my staff will offer the consumer the most suitable product and

.

service that is customized to them specifically This part of the

.

service will not cost them anything The purpose is to give them the best result

.

Customers can make an appointment on different platforms

,

,

,

,

such as text message WeChat Pubilc Comment Tik Tok Little

,

Red Book and by phone as well to make the process as convenient as possible

.

KPI is being measured by reading the customer reviews and

(

feedbacks online and offline consumers are encouraged to leave their reviews after each visit

).

Visia Skin Dector 7th Generation

Public Comment -

Open an official account and post high quality pictures on the official account

Public Comment

.

Oasis, Little Red Book, Tik Tok Open an official account and post the product and services offered in the store

Oasis

.

Hire Influencers to come to the store and share their experience on their social media

.

Tik Tok

Little Red book

Online Marketing Strategy

Interior Design Strategy

-

The Millennials and Gen Z customers want the luxurious experience when they walk into a skin

.

,

Management store As a solution I want my

,

store to have a clean luxurious and modern interior to fulfill their needs

.

T&A Chart

Concept

Launch Time

Rental

2 Month

1 Month

From the start of the

From Feb

quarter to the end of the

28th

28th to March

quarter

Construction

Opening

3 Month

1 Month

After the lease contract

To train the staff to make

is singed

sure the right experience is provided

FINANCIAL ANALYSIS

Cost structure Marketing Expenses 15%

Rent 20%

Key Point Salary is the largest portion of the cost

Beauty Equipment Maintance 10%

structure because the skin management

'

industry s sales are heavily commission driven

Utility Bill 5%

'

.

Rent s portion varies because the percentage will change based on the

Pruduct Cost 15%

Salary 35%

sales value

.

-

Projected Sales Others 20%

Skin Pro 15%

$450,000 : $112,500 $337,500 $135,000 202,500

Net Sales : COGS

Pola BA Series 10%

Gross Profit :

Operating Expenses :

Thermage FLX 30%

Valmont 25%

Net Profit :

P&L Statement $450,000 : $112,500 $337,500 $135,000 202,500

Net Sales : COGS

Gross Profit :

Operating Expenses : Net Profit :

AnonAssets.Kpmg, 2021, https://assets.kpmg/content/dam/kpmg/cn/pdf/zh/2018/03/chinas-connected-consumers-the-rise-of-the-millennials.pdf.

Accessed 1 Feb 2021. 中国“千禧一代”是一群什么样的消费者？"中国“千禧一代”是一群什么样的消费者？". Tech.Sina.Cn, 2019, https://tech.sina.cn/it/2019-02-25/detailihsxncvf7724904.d.html?from=wap. Accessed 1 Feb 2021.

Work Cited

中国人买走全球1/3奢侈品，千禧一代成消费主力"中国人买走全球1/3奢侈品，千禧一代成消费主力". Yicai.Com, 2021, https://www.yicai.com/news/100144474.html.

Accessed 1 Feb 2021.

Millennials and Gen Z shape China’s recovery | WARC"Millennials And Gen Z Shape China’S Recovery | WARC". Warc.Cn, 2021, https://www.warc.cn/newsandopinion/news/millennials-and-gen-z-shape-chinasrecovery/44262#:~:text=According%20to%20the%20report%2C%20millennial,the%20urban%20population%20by%202025. Accessed 1 Feb 2021. https://www.mckinsey.com.cn/%E8%B5%A2%E5%BE%97%E5%90%8E%E6%B5%AA%EF%BC%9A%E4%BA%9A%E5%A4%AA%E5%9C%B0%E5%8C%BA z%E4%B8%96%E4%BB%A3%E6%B6%88%E8%B4%B9%E8%80%85%E7%A0%94%E7%A9%B6/ https://www.mckinsey.com/cn/our-insights/our-insights/chinas-gen-z-are-coming-of-age-heres-what-marketers-need-to-know# AnonAccenture.Com, 2021, https://www.accenture.com/_acnmedia/PDF-68/Accenture-Insights-Digital-Commerce-China.pdf. Accessed 1 Feb 2021. https://go.euromonitor.com/white-paper-digitalconsumer-201013-How_Chinas_urban_Millennials_and_Gen_Z_Live_and_Spend.html https://www.occstrategy.com/cn/%E5%85%B3%E4%BA%8Eocc/%E6%96%B0%E9%97%BB%E5%8F%8A%E5%AA%92%E4%BD%93%E6%8A%A5%E9%8 1%93/article/id/3460/2019/03/chinas-generation-z-an-emerging-borderless-tribe