K A N N A
F R A G R A N C E
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
be possible without the
for the help from the
help of my
lecturers at
D1
Raffles College of
Lecturers
Design and Commerce
D2
especially,
Friends D1 D3
Betsabeh Sohrabi
Family D1
Christopher McLaren
Another thank you for
I am also grateful to
my best friends
my friends and family,
D
D2
Cindy Amelia
2
Gemilang Rachmad Juventa Karlo
D2
Bernadette Bianca
Giarti Putri
Yulyana Cang Hilary Ng
D2
Sandra Lim
D
2
Vidya Andini who has been
Tari Agenanda
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 products are essential to Indonesian women. Among 300 Indonesian women, 37.6% said they need to dress up for every occasion, while 44% said they need to have at least one or two luxury products for some occasions, and the last 18.4% said they do not care for dressing up (Roesma & Mulya, 2013). Photographers capture the most important 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.
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.
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 as a top spender on high-end and luxury brands
in
the
world.
Indonesia
has
managed to join the ranks of China as a “wealth creation giant” (Yullisman, 2014). Indonesia currently has more than 20 billionaires and this number is expected 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 Indonesia has grown to become familiar with this culture.
In
2014,
research
entrepreneurs
shows
in
that
young
Indonesia
are
growing up to 20% in the last 2 years. Furthermore, money
to
(Yullisman,
they
started
purchase 2014).
to
high-end
The
growth
use
the
products of
the
young generation within the upper and middle
class
community
has
strongly
and increasingly become the foundation in which KANNA is built upon, as this particular segment of market becomes the brand’s target market.
RESEARCH QUESTION Based on 200 people’s perspective from different age range and occupation.
3%
21%
How old are you? 42% 15-20 yrs old 34%
21-25 yrs old 26-30 yrs old Older
We asked 8 different questions
overseas but still visits Jakarta
to women from overseas that
at
resides in Jakarta, Indonesia.
year, or will be coming back
We interviewed 100 people that
to Jakarta for good in the near
currently lives in Jakarta, and
future. We interviewed in total
another
200 people from different age
100
people
that
are
currently studying or working
least
once
or
twice
range and occupation.
per
How often do you purchase a new perfume?
6%
13%
11%
70%
Monthly Every 3 months Randomly When run out of old perfume
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 exploring perfume They new
and do
just
searching
they
want
randomly
perfume
when
4%
what
to
have.
purchase they
19%
are
71%
shopping and focusing more on the packaging,
promotions
and
scent
instead of brand image and price.
Most of them currently does not use any local perfume brand since it is 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 young generation really have high expectation on perfumes, they do not want to spend a lot of money on it and yet they do not want 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
produce
essential oils. Indonesia exported more than $124 million worth of essential
oils
(Ministry
of
Trade
Republic of Indonesia, 2011). But it is a shame that Indonesia still lacks of local perfumery and fragrance brands.
Indonesia’s
fragrance
or
perfume market is still dominated by international brands. With this research, KANNA is putting itself to be one of the first players in the local perfume and fragrance market in Indonesia.
18%
29%
16%
37%
What do you look when you purchase a new perfume?
Brand
Packaging
Scent
Price
What perfume
10%
are you using 39% 51%
right now?
Luxury brands High-end brands Local brands
1% How much would you spend for a
16%
perfume? 32% Under Rp. 100,000 51%
Rp. 100,000 - Rp. 500,000 Rp. 500,000 - Rp. 1,000,000 Rp. 1,000,000 - more
Where do you purchase a new 24% 31%
perfume?
Retail Store
9% 36%
Airport Duty Free Department Stores Beauty Store
SWOT ANALYSIS
o
1 • There is no competitor with the same price and brand value in Indonesia. • Have a strong brand image that is associated with the Indonesian culture. • High quality products and packaging. • Provide unique customer experiences to loyal customers. • Sole ownership which allows full control. • Strong products that delivers style and story. • Work with a network of top Indonesian celebrities and socialites. • Have a large scale of target market. • Strong brand equity and loyalty.
o
1
Strenghts
o
2
Weaknesses
o
3
Opportunities
o
4
Threats
o
2 • Price point is higher and customers might prefer to buy products from international brands. • There are many cheaper local perfume and fragrance in Indonesia. • Operates within a niche market with highin come individuals. • High operating costs especially in packaging and services. • Considered as a new brand and product in the market. • The younger generation is lacking awareness and respect towards the Indonesian culture. • The products are not available online.
o
1
Strenghts
o
2
Weaknesses
o
3
Opportunities
o
4
Threats
PEOPLE CHANEL’s employees especially in beauty and fragrance department have to demonstrate good
understanding
and
knowledge
of
its perfume and beauty products. This is to
ensure
they
can
help
and
assist
the
customers and help them to find the right products.
All
employees
must
also
show
the classy and chic feel, which represents CHANEL’s brand image.
CHANEL connects with its customers mainly
Pe r f u m e I N D
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.
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.
P L AC E CHANEL’s
presence
can
be
found
all
around the globe but there is currently only one store in Jakarta, Indonesia, and it does not specialize in its cosmetics product range, i.e. the make up, skincare and fragrance line.
Another place to gain access to CHANEL’s fragrance
line
is
in
the
Jakarta’s
Soekarno Hatta Airport. The products are available in LOTTE DUTY FREE in the airport.
PEOPLE
Marc
Jacobs
connection
still and
lacks
the
good
relationship
with
its Indonesian customers. Currently, Marc Jacobs does not have any store dedicated
specifically
for
their
fragrance and beauty products.
Various customer services are also only available in few countries, such as United States and United Kingdom, but not Indonesia.
PRICE
Pe r f u m e 1 0 0 m l
Pe r f u m e 75 m l
Gift Set
R p. 80 0,0 0 0
R p . 550,0 0 0
R p . 850,0 0 0
to
to
to
R p. 1, 20 0,0 0 0
R p. 80 0,0 0 0
R p. 1, 750,0 0 0
P L AC E
Currently, Marc Jacobs does not have a place on their own that sells the beauty and fragrance products. There is only one Marc-by-Marc Jacobs store in Plaza Indonesia, Jakarta, and a small store in Galeries Lafayette store in Jakarta as well, although they do not offer the fragrance line. The only place that offers the products are in department stores in Jakarta, such as SOGO and Galeries Lafayette.
P R O M OT I O N
Marc Jacobs works with a number of celebrities and iconic people, such as Karlie Kloss and Dakota Fanning for the fragrance promotions. All of the promotions mostly have the same image and style, especially for the printed media advertisements. All of the campaigns have similar color 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
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.
Kanna Bottle Design Sketch Mat er ia l: Gla s s , Batik Songket
o
5
PLACE KANNA will open their first retail store in Jakarta. KANNA will open the
store
at
Plaza
Senayan
in
Central Jakarta.
The
main
reason
of
choosing
alongside with retail store brands
Plaza Senayan is because of the
such
strategic location and also because
Gucci,
Louis
the shopping centre has different
&
Victoria’s
local
Mango,
and
international
high-
Co.,
as
Kate
Spade,
Celine,
Vuitton,
Tiffany
Secret,
L’Occitaine,
Burberry,
end brands, which have similar
Longchamp,
target
have a minimalist store with a
Plaza
market Senayan
with
KANNA.
currently
etc.
Zara,
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.
Plaza Senayan retail price is Rp.1.300.000 per meter for each month plus Rp.200.000 service charge.
The store will use the term “Less is more� 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 the
store
will
also
have
a
small
cashier
counter in the back of the store. The store will also have one or two sample table to make it easier for the costumers to try on some scents.
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
new
product collaborations with different celebrities such as Dian Sastrowardoyo and Mesty Ariotedjo.
KANNA’s brand and store launch event will be held on Wednesday, August 20th 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 desserts, it is hoped that the guests will have pleasant time while have a closer look to the perfumes.
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.
K A N N A
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. •
To deliver the right brand image to the
guests through the interior and the party theme. •
To build relationship with other designers
and also with important key people in the fragrance and beauty industry. •
To gain maximum exposure to our sponsors
and partners. •
Hoped for the guests to post different
pictures on their social media platforms especially Instagram.
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 for Indonesia’s own high-end beauty brand
by
providing
high
quality
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
BRAND IDENTITY II
R E D E F I N I N G
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
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
P E R F U M E
N
N
A
E U
D E
P E R F U M E
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
A
A
P E R F U M E
N
D E
N
K E U
A
A
K
N
P E R F U M E
N
D E
A
D E
A
E U
K
A
N
N
A
P E R F U M E
ROI
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 minimum 500 products sold per year, KANNA will make a profit of IDR 180,000,000 during the second quarter of 2015. Half of the profit gained will be reinvested into the next collection of KANNA that will be introduced in October 2015.