SITUATION ANALYSIS

SIRNA SARI KOSMETIK

NOR AZIEDA BINTI ROZLAN

ID: 1092700358

MEDIA INNOVATION

DELTA FYP 1 2013/2014

Table of Content

Chapter 1 – Project Overview

1.1 Introduction

1.2 Problem Statement and Issues

1.3 Objectives and Aims

Chapter 2 – Project Profile

2.1 Product Name

2.2 Product Classification

2.3 Product Characteristics

2.4 Product Range

2.5 Distribution

2.6 Product Life Cycle

2.7 The Brand

2.8 Brand Image and Implication

2.9 Strength and Weakness

2.10 Advantages and Disadvantages

2.11 Unique Selling Proposition (USP)

2.12 Promotional History and Advertising Schedule

2.13 Positioning Statement

Chapter 3 – The Company

3.1 Company Overview

3.2 Business Description

3.3 Company History

3.4 Key People

3.5 Location and Subsidiaries

3.6 Brands, Major Products and Services

3.7 Corporate Vision

3.8 Corporate Mission

3.9 Company’s Current Promotional Strategy

3.10 Product Sales’ History

3.11 Current Marketing Objective

3.12 Media Expenditure

Chapter 4 – Consumers and Stakeholders

4.1 Current Consumers’ Characteristics

4.1.1 Demographics

4.1.1 Psychographics

4.2 Stakeholders’ Characteristics

4.2.1 Primary

4.2.2 Secondary

Chapter 5 – Industry and Marketplace

5.1 The Industry

5.1.1 Definition of the Industry

5.1.2 Shape of the Industry

5.1.3 Development of the Industry

5.2 The Marketplace

5.2.1 Current Condition of the Marketplace

5.2.2 Changes in Marketplace

Chapter 6 – Competitive Situation

6.1 Direct Competitors

6.2 Indirect Competitors

Chapter 7 – SWOT Analysis

7.1 Strength

7.2 Weakness

7.3 Opportunity

7.4 Threats

Chapter 8 – Strategic Target Audience

8.1 Proposed Primary Target Audience

8.2 Proposed Secondary Target Audience (if any)

Chapter 9 – Research Development

9.1 Marketplace Research

9.2 Market Observation

9.3 Online Survey

9.4 Interview

9.5 Others

Chapter 10 – Precedent Studies

10.1 Advertising Strategy

10.2 Precedent Studies

Chapter 11 – References

Chapter 12 – Appendices

Chapter 1 : Project Overview

1.1 Introduction

SirnaSari Kosmetik is a Malaysia based company that engages into cosmetic industry. SirnaSari started off in 1998 where they manufactured cosmetic products. They expended themselves into consumer cosmetic manufacturing of their own brand. The name of the company is SIRNASARI INDUSTRIES (M) SDN. BHD. The company produces in all kinds of patent, pharmaceutical, patent medicines, herbs, perfumes, creams, washes, cosmetics, skin preparation, soaps, oils, beauty specialities, chemists and chemical manufacturers. The company is a private company. They have their own tagline which is ‘Satu Pusaka Warisan Dari Keraton, Wajah Berseri Kecantikan Asli maka wujudla SirnaSari’.

The company produces in all kinds of cosmetics product. Sinar Sari Kosmetik offers many categories of cosmetic products especially on women’s care product such as skin care set, body scrub, slimming gel, body shampoo, whitening product, masker, medicines and herbs which is jamu and oils, hair shampoo and many more. In this project I am going to concentrate only on the Sirna Sari Klasik. Sirna Sari Klasik is a set of skin care product. This is because the Sirna Sari Klasik is the most demanded products in the Sirna Sari Kosmetik family.

Sirna Sari Klasik is the best selling product. A set of skin care product which includes day cream, night cream and facial wash. Sirna Sari Klasik has a very bad packaging design, portrayed by the company itself through the promotion. The product has many tough competitions from other existing Cosmetics company. According to surveys and research done, the SirnaSari product is still way behind the market leaders such as Mustika Ratu, Seri Ayu, Safi Rania, Silkygirl and many other local products because of lack of media mass. The product has a very cheap price but it is limited and it can only be found by a certain shop.

1.2 Problem statement and issues

In this project I am going to expose more about Sirna Sari Kosmetik. This is because of the product have many tough competition from other existing Cosmetics company. They don’t have enough promotional activities from the company. According to surveys and research done, the SirnaSari product is still way behind the market leaders such as Mustika Ratu, Seri Ayu, Safi Rania, Silkygirl and many other local products because of lack of media mass. The biggest issue is that they don’t have their own official website. They only promote their product on blogspot and facebook page instead of their own official website. Other than that, SirnaSari has a lack of advertising strategy compare to its other competitors. SirnaSari Kosmetilk doesn’t have any commercial, billboard, expo or even a well design website and enough information about their products. Sirna Sari Kosmetik has a low quality image because of the bad packaging designs. The packaging has to improve to make it more exclusive, attractive and interactive. Brand is repositioned, but the success is not known. The increasing big guns competitors in the cosmetic industry also make Sirna Sari struggling to keep to maintain their brand image. Although they have a cheap price unfortunately, the product is limited. It can only be found by a certain shop.

For this, having a well planned advertising strategy is very important for SirnaSari Kosmetik to make it in the cosmetic industry. This is to create customer loyalty and awareness of the product itself.

1.3 Objectives and Aims

Objective

An official website of Sirna Sari Kosmetilk and well design website

Open up/set up SIRNASARI BOOTH to promote their product

New packaging

Create more advertisement / Billboard

New advertisement – Outdoor Media

Make a TVC

Giving more information about the products and testimony

Do more on promotional activities

Expose more on media mass

Aims

To create a sustainable business on Cosmetics

A well planned advertising strategy for SirnaSari Kosmetik to make it in the cosmetic industry

To create customer loyalty and awareness of the product itself.

Chapter 2 : Project Profile

2.1 Product Name

Sirna Sari Klasik

2.2 Product Classification

A set of skin care product to protect, repairs and flawless your skin which includes

day cream, night cream and facial wash.

Market Rate of Consumption Purchasing Habit

Consumer Worthwhile and Effective Shopping Goods

Consumer cosmetic product

Non-durable: Client will have to buy it after finish

Convenient goods: Smart women buys to have a beautiful and flawless skin

2.3 Product Characteristics

Packaging

Product name: Sirna Sari Klasik

Type: Skin care set

Price: RM 29.90 (SM), RM 39.90(S&S)

Unit of sales: Comes in a box with 5g of day cream, 5g of night cream and Facial

wash

Day cream: To protect your skin from the sun and as a face moisturizer

Night cream: Lighten the skin, as well as get rid of dark spots on the skin and

controls the production of melanin cells (pigment)

Facial wash: Provide softness and freshness on your skin all day

2.4 Product Range

A set of skin care product includes;

5g of day cream

5g of night cream

Facial wash

Day cream: To protect your skin from the sun and as a face moisturizer

Night cream: Lighten the skin, as well as get rid of dark spots on the skin and

controls the production of melanin cells (pigment)

Facial wash: Provide softness and freshness on your skin all day

Packaging:

The box packaging is not attractive and it is quite dull because they use a safe

color which is white and green.

2.5 Distribution

Distribution is a process of moving a product from the manufacturer to the

customers. There are 3 types of distribution which is intensive, selective and

exclusive distribution. Sirna Sari Kosmetik is categorized under selective as most

of their products are selling at cosmetic retail shops in every country in Malaysia.

Indirect distribution: After product is created from factories, they will be

distributed to selected convenience store.

Selective distribution: Product is distributed to selective retailers including

convenience stores and supermarket.

2.6 Product Life Cycle

The product life cycle is to determine the sales versus time of a product. The Sirna

Sari Klasik is a new product in the market so the product is still in the growth

section. Products usually will growth till the maximum / maturity level and

decrease afterwards. Usually the main cause of the decreasing is because of new

products are store.

2.7 The Brand

Sirna Sari Klasik is the best selling product. A set of skin care product to protect,

repairs and flawless your skin which includes day cream, night cream and facial

wash. Day cream is to protect your skin from the sun and as a face moisturizer.

Night cream is to lighten the skin, as well as get rid of dark spots on the skin and

controls the production of melanin cells (pigment). Facial wash is providing

softness and freshness on your skin all day.

The product comes with a box including 5g of Day cream, 5g of Night cream, and a

Facial wash. The price for one set of Sinar Sari Klasik is only RM 29.90 (SM) and

RM 39.90(S&S). The main target is for the news consumer who would like to try

the brand. This set is worthwhile for a first try consumer because the price is very

cheap and it is the most demanded products in the Sirna Sari Kosmetik family.

2.8 Brand Image and Implication

Most people are still unaware of the existing of this brand, besides that the

popularity is growing. This is proven as more and more Sirna Sari Kosmetik brands

and direct outlet can be found around Malaysia. Although it has a very cheap

price but the product is limited.

According to surveys and research done, the Sirna Sari product is still way behind

the market leaders such as Mustika Ratu, Seri Ayu, Safi Rania, Silkygirl and many

other local products because of lack of media mass. Sirna Sari Kosmetik has a low

quality image because of the bad packaging designs.

2.9 Strength and Weakness

Strength

Sirna Sari Klasik is cheap and affordable

All product in one package at lower price

Worthwhile comparing to other competitors

KKM approval

HALAL certified by the Department of Islamic Development Malaysia

(Jakim)

No chemical

100% using plants and herbs

No side effect

Natural ingredients

Weakness

Small quantity of market demand

Limited product

Can only be found by a certain shop

Low quality image because of the bad packaging designs

Not well known

2.10 Advantages and Disadvantages

Advantages

Protect your skin from the sun and moisture your skin

Lighten the skin, as well as get rid of dark spots on the skin

Controls the production of melanin cells (pigment)

Softness and freshness your skin all day

Anti-aging

Remove white head and black head

Giving a smoother skin

Disadvantages

Have to compete with international cosmetic product

Product is limited

Product can’t be trust

It can only be found by a certain shop

Short term of expiry date

More reliable design by other cosmetic product

2.11 Unique Selling Proposition (USP)

Great pricing strategy, price is cheap and affordable

All product in one package at lower price

KKM approval

No chemical

100% using plants and herbs

No side effect

Natural ingredients

2.12 Promotional History and Advertising Schedule

Sirna Sari Kosmetik initiate their business by opening cosmetic factory

Then they start to distribute to cosmetic retailer across Malaysia

Brand exposure by promotional campaign in other to expose their product

to customers

By giving flyer and attractive banner with their promotional package

2.13 Positioning Statement

Sirna Sari Kosmetik giving a great pricing strategy. Sirna Sari Klasik comes in a box with 5g of day cream, 5g of night cream and Facial wash, all products in one package at lower price and their main target is female between the age group 16 – 40 to the two upper income classes.

Chapter 3: The Company

3.1 Company Overview

SirnaSari Kosmetik is a Malaysia based company that engages into cosmetic industry. SirnaSari has first started in the year 1998 where they manufactured cosmetic products. The company produces in all kinds of cosmetics product. They expended themselves into consumer cosmetic manufacturing of their own brand. The name of the company is SIRNASARI INDUSTRIES (M) SDN. BHD. SirnaSari Industries (M) Sdn Bhd is located at Johor Bahru, Johor, Malaysia. The company is a private company. They have their own tagline which is ‘Satu Pusaka Warisan Dari Keraton, Wajah Berseri Kecantikan Asli maka wujudla SirnaSari’. Sirna Sari Kosmetik initiates their business by opening cosmetic factory then they start to distribute to cosmetic retailer across Malaysia.

3.2 Business Description

Sirna Sari Cosmetic produces in all kinds of patent, pharmaceutical, patent

medicines, herbs, perfumes, creams, washes, cosmetics, skin preparation, soaps,

oils, beauty specialities, chemists and chemical manufacturers. Sinar Sari

Kosmetik offers many categories of cosmetic products especially on women’s care

product such as skin care set, body scrub, slimming gel, body shampoo, whitening

product, masker, medicines and herbs which is jamu and oils, hair shampoo and

many more. Sirna Sari Kosmetik is cheap and affordable, worthwhile comparing to

other competitors. The product has their KKM approval and no chemical. They are

using natural ingredients which are 100% using plants and herbs and no side

effect. Sirna Sari Klasik is the best selling product. A set of skin care product which

includes day cream, night cream and facial wash at lower price. Sirna Sari Klasik

has a very bad packaging design, portrayed by the company itself through the

promotion. The product has many tough competitions from other existing

Cosmetics company. According to surveys and research done, the SirnaSari

product is still way behind the market leaders such as Mustika Ratu, Seri Ayu, Safi

Rania, and many other local products because of lack of media mass. The product

has a very cheap price but it is limited and it can only be found by a certain shop.

3.3 Company History

Sirna Sari Kosmetik established on 1998. The founder is Dato’ Haji Johari Bin

Mansor. The name of the company is SIRNASARI INDUSTRIES (M) SDN. BHD.

SIRNASARI INDUSTRIES (M) SDN. BHD was incorporated under the Companies Act,

1965 on and from the 14th April 1998. The company is a company limited by

shares and the company is a private companies.

3.4 Key People

1. Director/Owner - Dato’ Haji Johari Bin Mansor

; the founder of SIRNASARI INDUSTRIES (M) SDN. BHD

2. Chief of Executive (CEO)– Norihan Bt Man

; has final decisions over human, financial, environmental and technical

operations of the corporation

3. Secretaries – Zulkifli Amin Bin Othman

; corporate officer who reports to the Board of Directors and is responsible

for keeping the records of the Board and the company

3.5 Location and Subsidiaries

The HQ’s address:

SirnaSari Industries (M) Sdn Bhd:

No. 15, Jalan Enau 1, Taman Teratai, 81110 Johor Bahru, Johor

Treatment center

Pusat Rawatan Keraton :

1. No.34, Jalan Padi Emas 2, Bandar Baru Uda, 81200 Johor Bahru

2. 20-2, Jalan 14/48A Sentol Raya, Boulevard Business Center, Sentul East,

51000 Kuala Lumpur

3. D-1-1, Plaza Tanjung Aru, Jalan Mat Salleh, 88000 Tanjung Aru, Kota

Kinabalu, Sabah

3.6 Brands, Major Products and Services

BODY CARE

1. Body Scrub - Refines and softens skin

2. Body Shampoo - Refines and softens skin

3. Whitening Cream - Whiten/soften the skin

4. D’Cinta - Build up happiness and confidence as well as extraordinary

enjoyment in the relationship of husband and wife

5. Lady Care - Formulated from the extracts of betel and roses, give

confidence and comfort throughout the day

6. Slimming Gel - Launched the circulation of the blood and spinal. Break

down accumulated fat, get rid of wind to slim and firm up body

7. Tawas - Remove acne and brighten the skin

SKIN CARE SET

1. Eye Make Up Remover - Remove makeup and dead cells under the eyes.

Provide protection to the delicate eye tissue

2. Cleansing Milk - Remove makeup residue, excess oil and dust on the surface

of the skin and soften the skin

3. Facial Cleanser - To clean skin pores

4. Day Cream - To protect skin from the sun and as a facial moisturizer

5. Night Cream - Perfect supplying nutrients to the skin, lightens, removes

blackheads on the face and control the melanin cells

6. Anti Wrinkle Cream – Reduce wrinkles on the face, makes the skin supple,

smooth and youthful

7. Toner - Kill germs and shrink open pores

8. Treatment Lotion - Remove dead skin and pigmentation

9. Sun Block Honey Cream - Protect the skin from sunlight and reduce

pigmentation

10. Masker - Tighten, refine, brighten and eliminate fatigue on the face

11. Tree Tee Oil - Prevent acne and control excess oil on face

12. Moisturizer - Giving moisture and softness skin

COSMETIC & HAIR CARE PRODUCT

1. Compact Powder

2. Eye Brow

3. Eye Liner Pencil

4. Eye Shadow

5. Two Way Cake

6. Hair Tonic

7. Hair Shampoo

HEALTH CARE PRODUCT

1. Jamu Sirna Sari - Give happiness to married couples, treat vaginal discharge

and attractive body shape

2. Jamu Galian Singset - Reduce fat and cholesterol

3. Jamu Antiresdung - Get rid of hives in the nose, eyes and ears

4. Jamu Langkasuka - Increased appetite

5. Balm Pati Serai - Relieve joint pain and bone pain

6. Balm Langkasuka - Good for babies who suffer from colic

7. Majun Langkasuka - Suitable for men who suffer from sexual dysfunction

8. Minyak Dupa Sakti - Appropriate to the wrong vein

9. Minyak Gosok Langkasuka - Relieve back pain, joint pain, stiffness and

numbness

3.7 Corporate Vision

Aim to be global cosmetic player

To be leading manufacturer of cosmetic

Establish a long term customer partnership

As a professional beauty expert and business minded entrepreneurs

Dedicating to be a largest distributor of cosmetic and consumer care

products, and beauty solution provider for all level of people in Malaysia

Not only in Malaysia but we look forward to being an exporter to other

neighbor countries.

3.8 Corporate Mission

Sirna Sari Kosmetik will design, develop, manufactor in house cosmetic

product

We provide various choices of products ranging from very affordable

cosmetic

We provide professional beauty consultation and treatment solution

options to all types of skin problem with flexibility to the customer

economic status

To achieve customer satisfaction in manufacturing of quality products

Constantly enhancing the supply chain management

Loyalty to our customer that perceived as values

3.9 Company’s Current Promotional Strategy

Distribute to cosmetic retailer across Malaysia

Brand exposure by promotional campaign in other to expose their product

to customers

Giving flyer and attractive banner with their promotional package

3.10 Product Sales’ History

3.11 Current Marketing Objective

Short Term Objective

Investing for the future

SirnaSari Kosmetik is a Malaysia based company that engages into cosmetic

industry. To further strengthen their leading role in the cosmetic industry and to

cater for the anticipated volume growth, they have taken various steps to

enhance their production capability and capacity.

Sirna Sari Kosmetik initiates their business by opening cosmetic factory. Then they

distribute to cosmetic retailer across Malaysia. For brand exposure, they are

giving flyer and attractive banner with their promotional package. Other than

that, they use promotional campaign in other to expose their product to

customers.

Long Term Objective

Outlook and Prospects

The domestic economy is expected to continue its positive growth and this should

translate into stronger consumer spending for their product. They anticipate that

the domestic retail sales will further improve in tandem with the improving

economy. With their continuous efforts to promote their various brands and

coupled with the enhancement of our product capability, they remain confident

that the volume of our cosmetic product will continue grow.

3.12 Media Expenditure

They haven’t been much of media expenditure. Till now, there has only been a

product and commercial launch. Sirna Sari didn’t make full use of media yet for

their promotional activities. Apart from their promotional launch, there have

been no additional promotional activities. They do plan to produce television

advertisements and radio ads after the product is finalized. Sirna Sari also

promotes their product using social media such as Facebook and Blogspot.

Chapter 4: Consumers and Stakeholders

4.1 Current Consumers’ Characteristics

4.1.1 Demographics

AGE 15 - 50

GENDER Female

OCCUPATION Students, Executives , Professionals

INCOME RANGE RM 0 - RM1500 , RM1500 and above

RACE All Races

GEGRAPHIC LOCATION Urban and Sub-urban Areas.

4.1.2 Psychographics

PERCEPTION To look young & beauty, Reasonable price , No chemical, KKM approval

LEARNING Digital media, Printed ads , Internet advertisements, Others ( Peers or Promoters)

MOTIVATION & NEEDS For women who care about their skin and for women who has skin problem and sensitive skin

ATTITUDE & PERSONALITY Image driven, Trendy

LIFESTYLE Health conscious, Social active, Trend setter

4.2 Stakeholders’ Characteristics

4.2.1 Primary

Board of Director

Direct the company affairs, whilst meeting the appropriate interests of its

shareholders and stakeholder to achieve company goal

Employees

Work of the organization and contributing to the company in cooperation

with director in other to achieve company goal

Consumers

Spends in exchange for the product produced by the company and

contributes revenue for the company

4.2.2 Secondary

Distributors

Provide service and good produced to consumers to generate revenue to

the company

Media

Helps marketing department to advertise the brand and create awareness

among consumers

Bank

Provide financial service, loans as capital to the company

Chapter 5: Industry and Marketplace

5.1 The Industry

5.1.1 Definition of the Industry

Cosmetics (colloquially known as makeup or make-up) are care substances used to enhance the appearance or odor of the human body. They are generally mixtures of chemical compounds, some being derived from natural sources, many being synthetic. In the U.S., the Food and Drug Administration (FDA), which regulates cosmetics, defines cosmetics as "intended to be applied to the human body for cleansing, beautifying, promoting attractiveness, or altering the appearance without affecting the body's structure or functions." This broad definition also includes any material intended for use as a component of a cosmetic product. The FDA specifically excludes soap from this category

5.1.2 Shape of the Industry

Companies in this industry manufacture cosmetics, skin care, and hair care

products, also known as toilet preparations. Products include antiperspirants,

colognes, creams, foundations, lipsticks, lotions, perfumes, and shampoos.

Companies that make soaps and toothpastes are covered separately.

Ethics

During the 20th century, the popularity of cosmetics increased rapidly. Cosmetics are increasingly used by girls at a young age, especially in the United States. Due to the fast-decreasing age of make-up users, many companies, from high-street brands like Rimmel to higher-end products like Estee Lauder, cater to this expanding market by introducing flavored lipsticks and glosses, cosmetics packaged in glittery, sparkly packaging and marketing and advertising using young models. The social consequences of younger and younger cosmetics use have had much attention in the media over the last few years.

Safety

Cosmetic companies successfully resist regulation by government agencies like the FDA, and have also lobbied against this regulation throughout the years. The FDA does not have to approve or review cosmetics, or what goes in them, before they are sold to the consumers. The FDA only regulates against the colors that can be used in the cosmetics and hair dyes. The cosmetic companies do not have to report any injuries from the products; they also only have voluntary recalls of products.

Animal testing

Cosmetics testing on animals are particularly controversial. Such tests involve general toxicity, eye and skin irritancy, phototoxicity (toxicity triggered by ultraviolet light) and mutagenicity.

5.1.3 Development of the Industry

The 1938 Food, Drug, and Cosmetic Act brought the cosmetic industry under the regulatory jurisdiction of the FDA. However, the confluence of federal administrative budgetary constraints, historical conditions of the cosmetic industry’s development, and pragmatic policy considerations has fostered a unique regulatory regime. The FDA has come to rely heavily on the cosmetic industry to regulate itself in order to ensure consumer safety. Recent criticisms allege that this system of self-regulation is ineffective, inefficient, and/or inappropriate. This paper will situate these criticisms within their various contexts – the historical, social, and administrative realities which define and constrain potential regulatory approaches – in order to assess the propriety of the current schema of cosmetic industry self-regulation.

“But our desire for beauty is likely to outlast its object because, as Kant once observed, unlike all other pleasures, the pleasure we take in beauty is

inexhaustible.” Of the major cosmetics firms, the largest is L'Oréal, which was founded by Eugene Schueller in 1909 as the French Harmless Hair Colouring Company (now owned by Liliane Bettencourt 26% and Nestlé 28%; the remaining 46% is traded publicly). The market was developed in the USA during the 1910s by Elizabeth Arden, Helena Rubinstein, and Max Factor. These firms were joined by Revlon just before World War II and Estée Lauder just after. Beauty products are now widely available from dedicated internet-only retailers,

who have more recently been joined online by established outlets, including the major department stores and traditional bricks and mortar beauty retailers. Although modern make-up has been traditionally used mainly by women, an increasing number of males are gradually using cosmetics usually associated to women to enhance or cover their own facial features. Concealer is commonly used by cosmetic-conscious men. Cosmetics brands release cosmetic products especially tailored for men, and men are increasingly using such products

5.2 The Marketplace

5.2.1 Current Condition of the Marketplace

Worldwide Cosmetic Market

If you look at the entire worldwide cosmetic industry, sales reach about $170

Billion dollars a year. It’s distributed pretty uniformly around the world with ~$40

billion in the Americas, ~$60 billion in Europe, ~$60 billion in Australia & Asia, and

another $10 billion in Africa. The Western world spends a bit more per person but

India and Asia are quickly catching up.

5 Primary Cosmetic Segments

So now that you know where all the money is spent, it’s helpful to know what

people are spending their money on. The cosmetic industry (aka beauty industry

or personal care industry) can be broken down into 5 segments. Sales are

distributed roughly by the %’s given.

1. Hair Care – 20%

2. Skin Care – 27%

3. Fragrance – 10%

4. Make-up – 20%

5. Other – 23%

5.2.2 Changes in Marketplace

Positive changes

Chances for new cosmetic product in marketplace

Negative changes

Reputation in marketplace: Other well-known brands looking to invade

the marketplace

Have to compete with international cosmetic product

Product is limited

Product can’t be trust

Short term of expiry date

More reliable design by other cosmetic product

Chapter 6: Competitive Situation

6.1 Direct Competitors

Initial establishment of the Company in 1975, started from the residence of Mrs.

BRA garage. Mooryati Soedibyo. In 1978 the Company started to run commercial

operations, ie by producing herbs that are distributed in Jakarta, Semarang,

Surabaya, Bandung and Medan. In the development of consumer demand is

increasing, until in 1980 the Company began to develop various types of

traditional cosmetics.

At Date 8 April 1981 authorized the Company factory operated in Ciracas, East

Jakarta. In order to strengthen the capital structure, the Company obtained

approval from the Securities and Exchange Commission as a public company and

listed its shares in PT. Jakarta Stock Exchange in 1995.

SAFI, a leading Malaysian Halal brand consisting of quality goods and

comprehensive produced specifically for the needs of modern Muslim women

and men. Made with natural ingredients that comply with Islamic law and HALAL

certified by the Department of Islamic Development Malaysia (Jakim); SAFI does

not conflict with Islamic values and do not contain alcohol or gelatin.

Manufactured in ISO certified production center and "Good Manufacturing

Practice" (GMP), SAFI strive to produce high quality products to meet consumer

needs. To ensure high quality products, consistent and flexible supply, SAFI is

produced 100% in the factory located in Malaysia, as well as to comply with

international standards including the Federal Drug Authority (FDA), the European

Economic Community (EEC) / COLIPA, British Pharmacopoeia (BP), Cosmetics ,

Toiletries & Fragrance Association (CTFA).

SAFI products available throughout Malaysia, including pharmacies, supermarkets

and hypermarkets key. In addition, SAFI also put in many salespeople salesperson

sales counter SAFI which they are very well trained in giving beauty advice to you.

With the slogan ‘Selamat dan Suci’ as the driving force of this brand, SAFI ensure

that its products are produced with good quality for consumers, and safe for you

and your family.

6.2 Indirect Competitors

GROUP PROFILE

- A century of expertise in cosmetics

-€ 22,5 billion consolidated sales in 2012

- 27 global brands*

- 130 countries

- 72 600 employees

- 611 patents filed in 2012.

* These brands' annual sales are superior to 50 million euros

Established 20 years ago in 1985 by Founder, Dr Tor Lam Huat, L.D. Waxson is the pioneer manufacturer in beauty & body care products in Singapore. With foresight and a strong enterprising spirit, Dr Tor has taken L.D. Waxson from a fledging enterprise to be a homegrown regional establishment with operations in Singapore, Malaysia, Thailand, Hong Kong and China and market reach to more than 15 countries including the USA, Europe, Japan, Middle East and S.E Asia countries. Its local distribution in Singapore reaches over 800 retail outlets island-wide, allowing easy access the products everyone.

Dr Tor is also the creator of the renowned brand, Bio-essence which houses many unique products with rapid efficacies such as Face Lifting Cream and 24k Gold Eye Contour Lifting Serum. In May 2001, during an interview with Business Straits, a Singapore-Malaysian publication, he confidently said, “Bio-essence dares to challenge the big international brands”. As a matter of fact, Bio-essence Face Lifting Cream is the No. 1 selling facial care product in Singapore since 2004. Bio-essence is also the fourth best selling facial care brand only after the top 3 international brands.

Alliance Cosmetic Group

The Alliance Cosmetic Group is a leading distributor of cosmetics and personal

care products. Brand portfolio includes Revlon cosmetics, Revlon haircolor, Avene

skincare, Elancyl bodycare, SILKYGIRL cosmetics, SILKYGIRL fragrances, Silky for

Men fragrances, Silky Lips lipcare, Silky White face products, Silky Care feminine

hygiene wash, Tokalon face masks and Cutex nail polish remover.

The Alliance Cosmetic Group launched SILKYGIRL in June 2005, adding new

excitement to the landscape of color cosmetics in the mass retail market.

SILKYGIRL offers a complete range of high quality color cosmetics that will meet

the needs of discerning consumers in both the urban and suburban markets.

SILKYGIRL's brand personality is fun, young, colorful and exudes confidence. The

core promise of the brand is delivered through the latest color trend and high

quality specifications of the products.

SILKYGIRL is now marketed at over 1,000 cosmetics counters in Malaysia,

Singapore, Brunei and Jakarta. In Malaysia, it is available at Guardian, Watsons,

Parkson, Jusco, Sasa, Apex and other independent supermarkets and pharmacies.

Following the success of SILKYGIRL color cosmetics, the Alliance Group launched

its fragrance line in July 2006.

Apart from introducing the SILKYGIRL women's fragrances, the Alliance Cosmetic

Group also introduced the Silky for Men fragrances; bringing on board Malaysian

heartthrob Mawi into the Silky family.

Chapter 7: Swot Analysis

SWOT ANALYSIS

Positive Negative

Internal factors

Strengths

Sirna Sari Klasik is cheap and affordable

All product in one package at lower price

Worthwhile comparing to other competitors

KKM approval

HALAL certified by the Department of Islamic Development Malaysia (Jakim)

No chemical

100% using plants and herbs

No side effect

Natural ingredients

Weaknesses

Not well known, brand is still new and only known in Malaysia

Many competitors in other brands

Small quantity of market demand

Limited product

Can only be found by a certain shop

Low quality image because of the bad packaging designs

External factors

Opportunities

New creative design and advances packaging

An official website of Sirna Sari Kosmetilk and well design website

Do more on promotional activities: Open up/set up SIRNASARI BOOTH to promote their product

Expose more on media mass

Create more advertisement / Billboard

Giving more information about the products and testimony

Threats

Other well-known brands looking to invade the marketplace

Reputation in marketplace, brand is still new and only known in Malaysia, not in worldwide

Chapter 8: Strategic Target Audience

8.1 Proposed Primary Target Audience

Demographics

AGE 13 - 18, 18 - 25, 25 - 28, 28 - 35, 35 - 50

GENDER Female

OCCUPATION Students, Executives , Professionals

INCOME RANGE RM 0 - RM1500 , RM1500 and above

RACE All Races

GEGRAPHIC LOCATION Urban and Sub-urban Areas.

Psychographic

PERCEPTION To look young & beauty, Reasonable price , No chemical, KKM approval

LEARNING Digital media, Printed ads , Internet advertisements, Others ( Peers or Promoters)

MOTIVATION & NEEDS For women who care about their skin and for women who has skin problem and sensitive skin

ATTITUDE & PERSONALITY Image driven, Trendy

LIFESTYLE Health conscious, Social active, Trend setter

Chapter 9: Research Development

9.1 Marketplace Research

For market place research, I went to several cosmetic retail store to gather more

information and to observe how it is sold in the market

Figure 1:

Pusat Rawatan Keraton: No.34, Jalan Padi Emas 2, Bandar Baru Uda, 81200

Johor Bahru

Figure 2:

Pusat Rawatan Keraton: 20-2, Jalan 14/48A Sentol Raya, Boulevard Business

Center, Sentul East, 51000 Kuala Lumpur

9.2 Market Observation

From my observation, the product is mostly bought at cosmetic retail shop.

*Still under research

9.3 Online Survey

9.4 Interview

Personal Interview with Siti Hazimah Binti Johari Mansor, daughter of the founder

and also by using email: Siti Hazimah Binti Johari Mansor

<shazimah88@gmail.com>

Chapter 10: Precedent Studies

10.1 Advertising Strategy

Sirna Sari Kosmetik hasn’t officially started advertising their services.

10.2 Precedent Studies

Chapter 11: References

http://sirnasarikosmetik.blogspot.com/2009/10/produk-sirna-sari-kosmetik-

pengasas.html

https://www.facebook.com/pages/SirnaSari-Kosmetik/158958570807245

https://docs.google.com/forms/d/1jMAQAejMDPqApX6xpeuPuYmV9RB1v2pd_q0

a8iUAeao/viewform

http://www.mustika-ratu.co.id/

http://kosmetik.mustikaratu.com/

http://www.safi.com.my/

http://safi.com.my/skin-care/rania-diamond/rania-diamond.php

http://www.bioessence.com.sg/

http://www.lorealusa.com/_en/_us/

http://www.loreal.com/

http://www.silkycosmetics.com/

Chapter 12: Appendices

https://docs.google.com/forms/d/1jMAQAejMDPqApX6xpeuPuYmV9RB1v2pd_q0

a8iUAeao/viewform