ARUGA a capstone project by corinne syquia
table of
CONTENTS part i: about the brand what is aruga? SWOT analysis aruga’s customer the competitors perceptual map
part ii: marketing plan product - the deal with coconuts - product line - soaps & scents price place promotion - special offers - online marketing - pop-up shop
6-7 8 10 12 16 22
24 26 28 30 32 34-37 38-41 44 46-49 50 52
about the
PROJECT Aruga is my capstone and what I would consider a passion project of mine. Besides fashion, I am very much into the beauty industry and a firm believer in organic skin care. I also wanted a project that would pay homage to my Filipino roots and take advantage of the many beautiful and natural resources that the Philippines could offer. Thus, the creation of Aruga: an all-natural personal care brand that uses coconut oil as the base ingredient. For this project, I’ve made the branding and constructed a marketing plan.
part i
6
THE BRAND
7
what is
ARUGA? The word ‘aruga’ (a-roo-GA) is a Filipino word that means “to nurture” or “to care for” - and as a brand, Aruga plans to do the same. Aruga is all natural and uses only the safest, and most effective plant-based products that are meant to nurture the skin, and bring it to its best possible state. To do this, Aruga bases its products on the coconut - a fruit with a countless number of benefits. Coconuts have plenty to offer and Aruga intends to make these benefits more accessible to the Hong Kong consumer. Aruga eventually aims to sustain and improve the living environments of Filipino coconut farmers and improve their living and working conditions. Aruga doesn’t just care for the humans, however - it cares for the animals and is therefore 100% cruelty-free. The key aspect of the branding of Aruga is softness and sophistication. Inspiration was taken not just from the coconuts themselves but from the color of the sea in the early morning sunrise, and a soft breeze. The muted pastel colors, along with the neutrals give a sense of approachability without being too child-like.
8
9
swot
ANALYSIS
10
strengths
weaknesses
( + ) Aruga’s all natural ingredients means that there is no green washing involved. ( + ) Coconut oil has a wide range of benefits that could benefit different skin issues ( + ) The Hong Kong market is showing a preference for skin care that is natural or has naturally-derived ingredients (Euromonitor, 2015).
( - ) Organic products have a shorter lifespan than regular products (Grotewiel, 2011) ( - ) The benefits of coconut oil may still be limited, and may not attract a lot of consumers. ( - ) Coconut oil may not recommended for people who are prone to breakouts (Leiva, 2015).
opportunities
threats
( + ) Possibility of penetrating a younger target market. ( + ) Hong Kong women currently prefer multifunctional makeup/skin care hybrids (Euromonitor, 2015), so there is an opportunity to create a color cosmetic line ( + ) Retailers are open to upcoming brands as well as established brands from all over the world, so there is a chance to sell products to a physical retailer (InvestHK, 2015). ( + ) Create a line of men’s products, or market the products to men.
( - ) Hong Kong locals perceive Western brands as more effective (Euromonitor, 2015). ( - ) Korean cosmetics are rising in popularity; consumers also believe that k-cosmetics are very effective despite being at a low price point (Euromonitor, 2015). ( - ) Despite the fact that online sales are growing, beauty specialist retailers are still the preferred channels for beauty brands to sell to (Euromonitor, 2015) ( - ) more established competitors in the market have more product lines to cater to more customers.
11
the
CUSTOMER
12
13
CUSTOMER PROFILE Aruga’s main target market is female, from Hong Kong. She is typically between the ages of 3545 and has a job. Because she is working and has her own source of income, she has the means to invest in more expensive skin care. Also, because she knows that her hectic work schedule and pollution in the city has negative effects on her skin, she sees higher quality skin care as an investment worth making (Euromonitor, 2015). In terms of phsychographics, the customer is an Achiever: they have a “me first, my family first” mentality; are committed to family and job; are fully scheduled; are goal oriented; are hardworking; are moderate; are peer conscious; and are professional (VALS, 2016). Name: Clara Cheung Age: 39 Civil status: married Occupation: Brand Manager Monthly income: HK$ 25,000 (Payscale, n.d.) Location: Central Working as a marketing manager keeps Clara busy most days, but that doesn’t prevent her from looking after her daughter’s well-being. She knows the value of nature and the outdoors, so on weekends she takes her 10-year-old daughter out to the nearest park to play. While the long hours and late nights can be hectic, Annie knows that she cannot slack off on taking care of herself. Her job means it is necessary for her to keep up a good appearance, which she does by using products that are good for her, and keeping a healthy diet. 14
15
the COMPETITORS
16
17
Price range: HKD 55-2900 Aromatologist and Organic Beauty Chef Daniela Pelonara established Native Essentials in 2011 after years of studying Asian botanicals. Her main goal was to find ways to help people relax and sleep better, using only natural ingredients. This eventually led her to study organic chemistry and natural cosmetic formulation, which ignited her passion to create organic cosmetics. Each of the Native Essentials products are formulated by Daniela in small batches, made out of ingredients that have been sourced by her personally. (Native Essentials, n.d.)
18
Price range: HKD 100-600 Melvita was established in the year 1983 by Bernard Chevilliat, a biologist and bee keeper, and his wife. It features skin care that focuses on products from the hive. Melvita was created at the beginning of the organic skin care trend and was one of the first companies to obtain an ECOCERT certificate in 2002. (Melvita, n.d.)
19
Price range: HKD 120-1,580 PurEarth is an organic skin care company and social venture that focuses on bringing an Ayurvedic approach to well-being - that is, it seeks to maintain a balance between the body, mind and spirit. The brand also has a “fair trade, not aid” philosphy when it comes to their workers. It partners “with microcredit and women savings and self - help groups in the Himalayas , enabling marginalized producer groups to engage with urban markets on fair terms.” (PurEarth, n.d.)
20
Price range: HKD 190 - 2,680 Fresh was founded in 1991 by Lev Glazman and Alina Roytberg. The brand was inspired by time-honored beauty traditions and was the first brand that sparked an industrywide trend that would incorporate natural ingredients - most notably sugar - into skin care. By combining modern technology with natural ingredients, Fresh offers products that provide and indulgent and effective experience. (Fresh, n.d.)
21
PERCEPTUAL MAP
22
HIGH PRICE
ARUGA
LESS ORGANIC
MORE ORGANIC
LOW PRICE 23
part ii
24
MARKETING PLAN
25
PRODUCT
26
27
the deal with
COCONUTS Aruga’s main ingredient is coconut oil, which has a number of amazing benefits when applied to the skin. First, coconut oil is popular for its hydrating properties due to the fatty acids it contains, which allow the oil to lock moisture into the skin, as well as reduce inflammation (Loius, 2013). Coconut oil is also known to have anti-fungal, anti-viral, and anti-microbial properties that make it ideal to be applied to fungal or yeast infections (Loius, 2013). Coconut oil also has anti-ageing properties, which is one of the primary features Aruga’s target customer looks for in skin care. Coconut oil contains ferulic acid and anti-oxidants to help promote the reduction of wrinkles and age spots (Leiva, 2015). In addition to that, coconut oil also promotes the production and replacement of collagen - a protein that connects tissues - which also helps minimize wrinkles (Loius, 2013). While coconut oil is fantastic for the face and body, it is also beneficial for the hair. Because it can easily penetrate the hair deeper than most conditioners, it is highly effective for moisturizing the scalp and reparing split ends (Natural Living Ideas, 2014). Because of the lauric acid, capric acid and vitamin c, it is also good for facilitating hair growth (n/a, 2014).
28
29
PRODUCT LINE Aruga has a variety of personal care products that benefit the hair, face and body. Hair products include a shampoo, conditioner and wash-off hair treatment. Face products will include: day moisturizer, night moisturizer, facial scrub, facial cleanser, and toner. Sunscreen will also be included, as sun protection is an itegral component in the Hong Kong market’s skin care (Eurominitor, 2015). Sheet masks have also grown in popularity due to the fact that they enhance skin care properties and make good souvenirs for tourists as well (Eurominitor, 2015). Lastly, the products for the body will include hand made bars of soap, and body lotion. Hand care will also make an appearance, as hand creams had a boost in sales (13%) in 2014 (Euromonitor, 2015).
30
HAIR
Shampoo
Conditioner
BODY
Hair mask
body butter
soap
hand cream
FACE
day moisturizer
night moisturizer
eye cream
sheet mask
cleanser
toner
sun screen
exfoliator 31
SOAPS & SCENTS The prototype seen here shows the bars of soap that will be a part of the product line. The soaps will be hand made and, like all of Aruga’s products, will be organic. At the initial launch, the bars of soap will have a variety of scents. Certain scents are known to have therapeutic effects on the consumer (Chen, 2013), and with Hong Kong’s stressful lifestyle, this may help alleviate some of the stress. Different bars of soaps will have have different scents that will suit different needs - be it relaxing, energizing, and so on. Scents like the original coconut and a peppermint variety will be available in the beginning and will expand into more varieties later on.
32
33
PRICE
34
35
PRICE LIST
Aruga’s products will be priced at a premium price point. As mentioned earlier, more consumers are investing in premium skin care, since they have the means to invest in such items. More and more consumers are also become aware of the quality of their skin care, often reading about products on their smartphones as they go shopping (Euromonitor, 2015).
36
HAIR PRODUCT Shampoo Conditioner Hair mask
SIZE 300 ml 300 ml 150g
PRICE HKD 250 HKD 250 HKD 200
FACE PRODUCT Day moisturizer Night moisturizer Eye cream Sheet mask Sunscreen Cleanser Exfoliator Toner
SIZE 50 g 50g 15g 100ml 200 ml 40 g 200 ml
PRICE HKD 300 HKD 300 HKD 350 HKD 150 HKD 300 HKD 200 HKD 150 HKD 200
BODY PRODUCT Soap Body Butter Hand Cream
SIZE 100 g 200 g 30 ml
PRICE HKD 100 HKD 350 HKD 75
37
PLACE
38
39
WEBSITE Since setting up a physical retail space is expensive - especially for a new and upcoming brand - Aruga will have its own website, which customers can order off of. The website is necessary not just to sell product - it’s where Aruga’s brand story will be communicated as well. The website will also be instrumental when it comes to communicating the brand’s ideals, such as the advantages of organic products and the benefits of coconut oil. The website will also have a blog section, where up and coming product will be announced.
40
41
ASSORTMENT At the initial launch of the website, the face/skin care category will have the largest assortment, as this category has had consistently higher sales in the last couple of years (Euromonitor, 2015). In the skin care category alone, sun screen will have the highest assortment, as sun protection is a mandatory step in the Hong Kong consumer’s beauty regimen. The second biggest assortment would come from hair care. Body care will come last as, according to Euromonitor’s research, this category had garnered the least amount of sales.
42
HAIR - 20%
Shampoo
Conditioner
BODY - 30%
Hair mask
body butter
soap
hand cream
FACE - 50%
day moisturizer
night moisturizer
eye cream
sheet mask
cleanser
toner
sun screen
exfoliator 43
PROMOTION
44
45
SPECIAL OFFERS Since Aruga doesn’t have a physical store, certain offers will be given to give the consumers incentive to buy the products. Smaller trial sized packages can be purchased for those who do not want to commit to a full-sized product yet. This way, the consumer can try out several products at once, and buy the products they are interested in.
46
47
Eventually, when the customer base has expanded considerably, Aruga can employ a loyalty program for the customers who repeatedly buy from the website. It will be based on a point system, where more points means bigger advantages, like trial sets of new products.
48
49
ONLINE MARKETING To spread awareness about the brand, certain blogs like Sassy Mama and Green Queen HK will be sent PR samples to for them to test and review. If the reviews are good, this will generate and interest in the brand. Aruga will also have a Facebook fan page, where customers can express their concerns, or ask questions. Facebook is the most suitable social media outlet because a considerable percentage of facebook users is Aruga’s target market; Business Insider reported last year that 19% are between the ages of 35-44, and 18% are between the ages of 55-64 (Hoelzel, 2015). The page will be run by the owners and attentive representatives of the brand to foster a closer relationship with the customers. Also, Facebook will be an excellent way to gather feedback about the product or service as people can rate the brand on the page. Any good testimonials will be advertised on the website to reinforce trustworthiness among new customers.
50
51
POP-UP STORE In order to further promote the brand, a pop-up store will be set up. The pop-up store will have 2 functions: 1.) to educate the customer about the brand story, its ideals, and the benefits of the products, and; 2.) to serve as a way for the customer to actually test the product out for themselves. The pop-up shop will contain testers for the customers to try, as well as store assistants who will demonstrate the product and assist the customers. In order to save on space, computers will be set up so the customers can feel free to order certain products at their convenience. They will order through the website and will have their purchases delivered to their home. Concept for the pop-up store will take inspiration from a beach house. It will be light and airy, with weathered furniture that would give off a rustic feel. The colors will be predominantly white and a pastel aqua color. Customers should come in and walk out feeling relaxed and refreshed.
52
53
54
55
SOURCES Euromonitor International. (2015, August). Skin Care in Hong Kong, China. Retrieved March 06, 2016, from http://www. euromonitor.com/skin-care-in-hong-kong-china/report Euromonitor International. Beauty and Personal Care in Hong Kong, China. (2015, August). Retrieved March 04, 2016, from http://www.euromonitor.com/beauty-and-personal-care-in-hong-kong-china/report US Commercial Service Hong Kong. (2013). Cosmetics & Toiletries Market Overviews 2013. (2013). Retrieved March 4, 2016, from http://business.usa.gov/export-portal?hongkong/build/groups/public/@eg_hk/documents/webcontent/eg_ hk_065324.pdf VALS™ | Strategic Business Insights (SBI). (n.d.). Retrieved March 04, 2016, from http://www.strategicbusinessinsights. com/vals/ Payscale. Brand Manager Salary (Hong Kong). (n.d.). Retrieved March 04, 2016, from http://www.payscale.com/research/ HK/Job=Brand_Manager/Salary Chen, J., M.D. (2013, August 05). Aromatherapy: Allowing Scents to Heal Us. Retrieved March 07, 2016, from http://www. huffingtonpost.com/julie-chen-md/aromatherapy_b_3698319.html PurEarth. Fair trade not aid. (n.d.). Retrieved March 12, 2016, from http://www.purearth.asia/philosophy/
56
InvestHK. (2015, March). Cosmetics. Retrieved March 14, 2016, from http://www.investhk.gov.hk/zh-cn/ files/2015/03/2015.03-cosmetics-en.pdf Grotewiel, C. (2011, January 3). Organic skin care; Is it really better? Retrieved March 13, 2016, from http://www. examiner.com/article/organic-skin-care-is-it-really-better Hoelzel, M. (2015, June 29). UPDATE: A breakdown of the demographics for each of the different social networks. Retrieved March 04, 2016, from http://www.businessinsider.com/update-a-breakdown-of-the-demographics-foreach-of-the-different-social-networks-2015-6 Native Essentials. About Us - Native Essentials. (n.d.). Retrieved March 05, 2016, from http://nativessentials.com/ shop/en/content/4-about-us Melvita. Bernard Chevilliat, founder of Melvita | Melvita | Hong Kong. (n.d.). Retrieved March 12, 2016, from http:// hk.melvita.com/bernard-chevilliat--founder-of-melvita,7,1,844,3952.htm Fresh. Fresh, Inc. (n.d.). Retrieved March 12, 2016, from https://www.fresh.com/US/about#beginning
57