part
o
1
INTRODUCTION dedication, acknowledgement, biography, executive summary
Project Book
Kanna Fragrance by Saranti Larasati.
Production of 2014.
For my dad and my brother Andrew,
D E D I C A T I O N who
has
been
there
the
entire
time
for me. Without the tireless love and support you have given me, I would still be wondering what I might accomplish.
A C K N O W L E D G E M E N T
This project will not
I am equally thankful
Another thank you for
I am also grateful to
be possible without the
for the help from the
my best friends
my friends and family,
help of my
lecturers at D2
D2
Cindy Amelia
Gemilang Rachmad
D1
Raffles College of
Lecturers
Design and Commerce
D
2
especially,
Juventa Karlo D2
Bernadette Bianca
Giarti Putri
Yulyana Cang
Friends
D3
Hilary Ng D1
D2
Betsabeh Sohrabi
Sandra Lim
D2
D
who has been
Tari Agenanda
Family
Vidya Andini 1
Christopher McLaren
helping me with ideas
&
D1
Mba Tri
&
Mba Win
designs throughout the
for the valuable
entire time.
contribution, help and time.
E X E C U T I V E S U M M A R Y
2
O
1
O
14
KANNA fragrance is the new Indonesian fragrance brand founded in 2014 and focuses on perfume to start with. With the background of Indonesia as one of the top key players in the essential oil industry, we take a huge step to become one and only Indonesian high-end local perfume brand.
With the combination of Indonesian and modern culture,
KANNA
wants
to
approach
young
Indonesian market who wants to explore novelty with strong purchasing behavior.
Participating in Indonesia’s today luxury and high-end market, KANNA promises to deliver both quality and service for the customers.
Indonesian
women
have
regular
social
gatherings
to
meet each other basically to gossip or show off new products that they have. Through surveys, it has been proven that dressing properly with high-end and luxury
They invite photographers to come
products are essential to Indonesian women. Among 300
to
Indonesian women, 37.6% said they need to dress up for
articles in high-end magazines about
every occasion, while 44% said they need to have at least
the events (Roesma & Mulya, 2013).
one or two luxury products for some occasions, and the
With
last 18.4% said they do not care for dressing up (Roesma &
Indonesian women really care about
Mulya, 2013). Photographers capture the most important
being recognized by the public.
of these gatherings. They invite photographers to come to these events and hope to see articles in high-end magazines about the events (Roesma & Mulya, 2013). With this fact, we can say that Indonesian women really care about being recognized by the public.
these
this
events
fact,
and
we
hope
can
to
say
see
that
I N D O N E S I A’ S MARKET AND PURCHASE B E H AV I O U R With the rise in the economy for the last 6 years, Indonesia has been considered
RESEARCH QUESTION
as a top spender on high-end and luxury brands
in
the
world.
Indonesia
has
managed to join the ranks of China as a
Based on 200 people’s perspective from different age range and occupation.
“wealth creation giant” (Yullisman, 2014). Indonesia currently has more than 20 billionaires and this number is expected 3%
to grow into 100,000 billionaires by the year of 2020. With the tradition (lifestyle) of
spending
money
on
high-end
and
luxury goods, the young generation of
21%
How old are you?
Indonesia has grown to become familiar
42%
with this culture.
15-20 yrs old In
2014,
research
entrepreneurs
shows
in
that
34%
young
Indonesia
21-25 yrs old 26-30 yrs old
are
growing up to 20% in the last 2 years. Furthermore, money
to
(Yullisman,
they
started
purchase 2014).
to
high-end
The
growth
use
Older
the
products of
the
young generation within the upper and
We asked 8 different questions
overseas but still visits Jakarta
middle
strongly
to women from overseas that
at
and increasingly become the foundation
resides in Jakarta, Indonesia.
year, or will be coming back
in which KANNA is built upon, as this
We interviewed 100 people that
to Jakarta for good in the near
particular segment of market becomes
currently lives in Jakarta, and
future. We interviewed in total
the brand’s target market.
another
200 people from different age
class
community
has
100
people
that
are
currently studying or working
least
once
or
twice
range and occupation.
per
The interview and survey outcomes proven that young generation of the Indonesian market use perfume
RESEARCH OUTCOMES & APPLICATIONS
almost everyday especially before they
go
out
from
the
house.
It 6%
is also proven that they are still How often do you purchase a new perfume?
exploring perfume They new
6%
and do
just
want
randomly
perfume
when
what
to
have.
purchase they
19%
are
71%
shopping and focusing more on the packaging,
13%
searching
they
4%
11%
promotions
and
scent
instead of brand image and price.
Most of them currently does not use any local perfume brand since it is 70%
rare to find in Indonesia and they
22%
16%
prefer to buy high-end and luxury perfumes that available in DUTY FREE shops in airports or retail
34%
28%
and pop up stores. Even though the Monthly
young generation really have high
Every 3 months
expectation on perfumes, they do
Randomly
not want to spend a lot of money
When run out
on it and yet they do not want
of old perfume
to but products cheaper than IDR 500.000 because they think it looks cheap.
With this pricing survey, KANNA concludes
that
we
need
to
be
careful on setting up the price.
How often do
How many perfume
you use
do you have at the
perfume?
moment?
Everyday
Everyday
Occasionaly
Occasionaly
Rarely
Rarely
Never
Never
I N D O N E S I A’ S PERFUME MARKET
Indonesia is known as one of the richest
countries
that
What perfume
10%
produce
are you using
essential oils. Indonesia exported 39%
more than $124 million worth of essential
oils
(Ministry
of
Trade
51%
Republic of Indonesia, 2011). But it
right now?
Luxury brands
is a shame that Indonesia still lacks
High-end brands
of local perfumery and fragrance
Local brands
brands.
Indonesia’s
fragrance
or
perfume market is still dominated by international brands. With this 1%
research, KANNA is putting itself
How much would
to be one of the first players in
you spend for a
16%
the local perfume and fragrance
perfume?
market in Indonesia.
32% Under Rp. 100,000 51%
Rp. 100,000 - Rp. 500,000 Rp. 500,000 - Rp. 1,000,000
18%
29%
16%
Rp. 1,000,000 - more
37% Where do you purchase a new 24% 31%
What do you look when you purchase a new perfume?
perfume?
Retail Store
9% 36%
Airport Duty Free
Brand
Packaging
Department Stores
Scent
Price
Beauty Store
SWOT ANALYSIS
o
o
1
2 • Price point is higher and customers might
• There is no competitor with the same price
prefer to buy products from international
and brand value in Indonesia.
brands.
• Have a strong brand image that is associated
• There are many cheaper local perfume and
with the Indonesian culture.
fragrance in Indonesia.
• High quality products and packaging.
• Operates within a niche market with high-
• Provide unique customer experiences to
in come individuals.
loyal customers.
• High operating costs especially in packaging
• Sole ownership which allows full control.
and services.
• Strong products that delivers style and story.
• Considered as a new brand and product in
• Work with a network of top Indonesian
the market.
celebrities and socialites.
• The younger generation is lacking awareness
• Have a large scale of target market.
and respect towards the Indonesian culture.
• Strong brand equity and loyalty.
• The products are not available online.
o
1
Strenghts
o
2
Weaknesses
o
3
Opportunities
o
4
Threats
o
1
Strenghts
o
2
Weaknesses
o
3
Opportunities
o
4
Threats
PEOPLE
P L AC E
CHANEL’s employees especially in beauty and
CHANEL’s
fragrance department have to demonstrate
around the globe but there is currently
good
of
only one store in Jakarta, Indonesia, and
its perfume and beauty products. This is
it does not specialize in its cosmetics
to
product range, i.e. the make up, skincare
understanding
ensure
they
can
and
help
knowledge
and
assist
the
All
employees
must
also
can
be
found
all
and fragrance line.
customers and help them to find the right products.
presence
show
the classy and chic feel, which represents
Another place to gain access to CHANEL’s
CHANEL’s brand image.
fragrance
line
is
in
the
Jakarta’s
Soekarno Hatta Airport. The products CHANEL connects with its customers mainly
Pe r f u m e I N D
the airport.
through email subscriptions. By signing up to the email subscriptions, customers are
R p. 1 30,0 0 0
kept updated with information and details on the latest promotions and events.
are available in LOTTE DUTY FREE in
to R p. 4 ,0 0 0,0 0 0
PRICE CHANEL’s fragrance can be considered as one of the most expensive fragrances in the world. Its top luxury global brand, however, allows its fragrance line to charge premium price, which positions the fragrance line as luxury products in the market. The premium price could maintain the exclusivity and their high-class brand image.
The fragrance price varies and depends on the places where you buy it. The price depends on the currencies and tax of every country. In Indonesia, the price of CHANEL fragrance varies from Rp.1.000.000 – Rp.4.000.000.
PEOPLE
Marc
P L AC E
Jacobs
the
good
Currently, Marc Jacobs does not have a place on their own that sells the
relationship
with
beauty and fragrance products. There is only one Marc-by-Marc Jacobs
its Indonesian customers. Currently,
store in Plaza Indonesia, Jakarta, and a small store in Galeries Lafayette
Marc Jacobs does not have any store
store in Jakarta as well, although they do not offer the fragrance line. The
dedicated
only place that offers the products are in department stores in Jakarta,
connection
still and
lacks
specifically
for
their
fragrance and beauty products.
such as SOGO and Galeries Lafayette.
Various customer services are also only available in few countries, such as United States and United Kingdom, but not Indonesia.
PRICE
P R O M OT I O N
Pe r f u m e 1 0 0 m l
Pe r f u m e 75 m l
Gift Set
Marc Jacobs works with a number of celebrities and iconic people, such as Karlie Kloss and Dakota Fanning for the fragrance promotions. All of
R p. 80 0,0 0 0
R p . 550,0 0 0
R p . 850,0 0 0
the promotions mostly have the same image and style, especially for the
to
to
to
printed media advertisements. All of the campaigns have similar color
R p. 1, 20 0,0 0 0
R p. 80 0,0 0 0
R p. 1, 750,0 0 0
scheme and font as well.
KANNA is no ordinary perfume and fragrance
brand
that
PRODUCT
emphasizes
the Indonesian culture and locally produced essential oils. KANNA will carry
a
high-end
perfume
Kanna Bottle Design Sketch Mat e r i al : Gl ass, Batik Songket
brand
with its proper brand image since the beginning.
KANNA will provide 6 different perfume scents in the first year and will continue to grow and provide limited editions perfume in the future. All the scents from KANNA will be the mixture of traditional Indonesian scents, along with modern and classic touch. KANNA will not use essential oils that are not produced in Indonesia.
KANNA will carry three different sizes of perfume from 30 ml, 50 ml and 100 ml. The smallest size of 30 ml will come in a set of two or three. The customers can choose two or three different scents for the each bottle and mix and match the scents to suit the customer’s personality. Each of the perfume shall describe a story of a girl or woman. The scent of each perfume shall describe their personality and their scent preferences.
o
5
PLACE
Plaza Senayan retail price is Rp.1.300.000 per meter for each month plus Rp.200.000
KANNA will open their first retail
service charge.
store in Jakarta. KANNA will open the
store
at
Plaza
Senayan
in The store will use the term “Less is more”
Central Jakarta.
with white as the main theme color and soft watercolors for decorations such as flowers, wall decorations, etc. The store will have a desk on the side so it is easier for the customers and the sales assistant to interact and hold consultation, but at the same time alongside with retail store brands
the
Plaza Senayan is because of the
such
strategic location and also because
Gucci,
Louis
the shopping centre has different
&
Victoria’s
local
Mango,
The
main
and
reason
of
choosing
international
high-
Co.,
as
Senayan
currently
a
small
cashier
Vuitton,
Tiffany
will also have one or two sample table to
Secret,
L’Occitaine, etc.
Zara,
Burberry,
have a minimalist store with a
Plaza
have
counter in the back of the store. The store
Longchamp,
KANNA.
also
Celine,
target
with
will
Spade,
Kate
end brands, which have similar market
store
KANNA
will
have
big open space in the middle to
two department stores, which is
make the place look and seem
SOGO & Metro department stores,
more spacious.
make it easier for the costumers to try on some scents.
K A N N A
The event will be focusing on the launching of the brand and the store itself. The event will be able to deliver the
brand
message
to
the
guests
and media. The owner of the brand, Saranti Larasati will be attending the event and share the brand vision and mission to the guests.
The event will introduce KANNA to the
Indonesian
will
introduce
market. the
first
The
L O Y A L T Y
event
collection,
which consist of six different scents. It
will
also
showcase
the
C A R D P S R O M O T I O N
F R A G R A N C E
L A U N C H
PA R T Y
Location &
KANNA Fragrance retail store, Plaza Senayan,
Launch Timing
Jakarta Pusat. Wednesday, July 23 rd 2014. 5pm- 8pm.
P.R & Publicity
•
To build brand awareness.
Objectives
•
To gain publicity to the brand and also the
products available. •
To successfully showcased the products to
the media and potential costumers. •
To get recognition in the local market.
•
To build relationship with key media
partners.
new
•
product collaborations with different
To deliver the right brand image to the
guests through the interior and the party
celebrities such as Dian Sastrowardoyo
theme.
and Mesty Ariotedjo.
•
To build relationship with other designers
and also with important key people in the
KANNA’s brand and store launch event will be held on Wednesday, August 20th
fragrance and beauty industry.
and start from 5pm until 8pm with a total 80 guests. The event allows guests to
•
enjoy and taste different perfumes provided. With relaxing music, champagne
and partners.
and desserts, it is hoped that the guests will have pleasant time while have a
•
closer look to the perfumes.
pictures on their social media platforms
To gain maximum exposure to our sponsors
Hoped for the guests to post different
especially Instagram.
KANNA’s brand and store launch event will be held in the official store in Plaza Senayan, Jakarta Indonesia. KANNA will get the permission from Plaza Senayan to use the space in front of the store due to the limited space available.
Publicity
•
Strategy
and the media. •
Build a good relationship between KANNA
To invite celebrities, bloggers and popular
Indonesian icons to attend the event. •
To invite key beauty & fashion media
partners.
Brand Promise: KANNA promise to be one of the top fragrance brands in Asia and known
R E D E F I N I N G
BRAND IDENTITY II
for Indonesia’s own high-end beauty brand
by
providing
high
quality
T T Y H H O E R U O R S U C G S E H E N N T S E S
perfume and daily beauty essentials. We
also
promise
to
deliver
good
quality product and packaging with exclusive services.
Brand Personality: 1.
Elegant and glamorous
2.
Young and full of curiosity
3.
Unique yet exciting Our tagline represent that Indonesia is one of the key players in the essential oil industry and we believe that a scent
is
something
that
represent
our customers’ personalities.
T A G L I N E
K
E U
A
D E
N
N
A
P E R F U M E
K
E U
K
E U
A
D E
N
N
A
D E
N
N
A
P E R F U M E
A
P E R F U M E
ROI K
E U
A
P E R F U M E
N N
D E
A
KANNA
fragrance
will
launch
to
the
Indonesian
market in Summer 2014. With the investment of total of IDR 151,500,000, KANNA expect to get the breakeven point in less than one year. With a possible of K
A
N
N
A
minimum 500 products sold per year, KANNA will K
E U
D E
A
N
N
make a profit of IDR 180,000,000 during the second
A
P E R F U M E
quarter of 2015. Half of the profit gained will be
E U
D E
reinvested into the next collection of KANNA that
P E R F U M E
will be introduced in October 2015.
K
A
N
N
A
K E U
D E
E U
K
A
N
N
A
K E U
D E
A
N
N
A
P E R F U M E
E U
D E
P E R F U M E
A
N
N
A
P E R F U M E
D E
P E R F U M E