Peter FontanaPeter FontanaKelly WilsonKelly WilsonGeorge LazarGeorge LazarHsin-Yi TaiHsin-Yi Tai

Group 2

Sasa • Low prices

• Broad product selection

• Convenient retail locations

• 25% market share in Hong Kong

• High brand recognition in many Asian countries

Market Environment

• Pro-Business environment

• Shopping tourism

• High percentage of Imported products

• A shorter product life cycle

About Sasa1978

1985

1989

The Essence of Success

• Mark down the MSRP

• Parallel importation

• Listen to the market’s voices

• Avoid overstocking

The Essence of Success

• Flagship Store

• Transaction efficiency

• Intensive job training

The Challenge

• Growing business • New competion• Supply chain issues

Solution• Diversification Strategy

Solution• Channels to Market

New Retail Format• New Retail Format

Competitiors• Other cosmetics discounters:

-Bonjour cosmetics-Rainbow group

• Drugstore chians-Watson’s-Mannings

• Department and specialty sotres

How can Sasa better leverage its brand equity?

• When in doubt look at your history

1978Opened Business

1981Expanded

1985ExpandedAgain

199510 Stores

1997IPO

ForeignExpansion

1999FlagshipStore

Store Brand

First Loss

Hired Professionals

2000AcquiredPhilip Wain

PremiumStore

Launchedecommerce

2001EnteredChina

Health foods

Self Service Stores

What Next?

Turnover

126

160 162 168184

0

20

40

60

80

100

120

140

160

180

200

1997 1998 1999 2000 2001

Sales ('000)

Innovation Professionalism

Value

Customer Customer

Cus

tom

erSteady Growth

Brand Truth

Brand Essence

• Value for Money• Convenience• Trendy• Product expertise• Established• Women centric

Brand Identity

• Underground indiscreet cosmetic counter

• Evolved into a mass cosmetic retailer

• Diversified into fitness

More than a cosmetics retailer. A Holistic Beauty and Wellness provider.

Opportunities

Cosmetics

Fitness

Wellness

Food

Beauty

Media

Training Centre

Lifestyle

How to improve profitability and maintain growth?

Where are the customers shopping?

Sasa Bonjour Rainbow

Skincare (in %) (in %) (in %)

Tier 1 Shiseido 42 31 22

Tier 2 Ultima 13 9 6

Tier 3 Revlon 14 14

Fragrance

Tier 1 Calvin K 42 40 49

Tier 2 Red Earth 7

Tier 3 Ponds 4

Cosmetics

Tier 1 Shiseido 31 28 5

Tier 2 Red Earth 5 5

Tier 3 Body Shop 11 3 28

Sasa Vs. GoliathSasa Dep. Store Specialty Shops

Skincare (in %) (in %) (in %)

Tier 1 Shiseido 42 63 20

Tier 2 Ultima 13 20 49

Tier 3 Revlon 14 18 32

Fragrance

Tier 1 Calvin K 42 66 20

Tier 2 Red Earth 7 12 3

Tier 3 Ponds 4 3 46

Cosmetics

Tier 1 Shiseido 31 70 15

Tier 2 Red Earth 5 14 29

Tier 3 Body Shop 11 5 50

SegmentationSasa Bonjour Rainbow

TOM

Real Spender 19 6 -

Value Seeker 29 5

Convenience Seeker 23 18 4

Purchase

Real Spender 57 31 4

Value Seeker 50 37 5

Convenience Seeker 41 21 5

Where is she spending?Sasa Bonjour Rainbow

Age (in %) (in %) (in %)

15-19 11 16 20

20-29 29 31 28

30-39 27 18 17

40-49 22 24 27

50-64 11 9 8

Working Status

Full time 48 41 22

Part time 7 7 6

Students 15 17 29

Housewives 19 20 31

Retired/Unemployed 8 11 12

Mon. Personal Income $1,732 $1,373 $1,243

Mon. Household Income

$4,884 $4,008 $3,981

Sasa Woman

• She is middle aged• Busy career woman• High Income bracket• Likely to be more

demanding• Places a premium on

time and product knowledge of sales staff

Who they are missing out on?

• The younger demographic

• Age 15-19

Why are they important?

• Cosmetics commands immense loyalty

• From being in their consideration set to actually being the preferred retailer brand

• Customer Lifetime Value

Why is branding critical?

• It’s a very competitive market

• Profit margins are high

• Low entry barriers

• The products conjure an imagery of beauty, sophistication, a better lifestyle

• Its important that the buying experience matches the customer expectations

How can Sasa grow its brand?

Recommendation

• Communicate the brand position to increase brand credibility

• Make the brand relevant to the core TG

• ‘Available at Sasa and other fine stores’

• Diversify into Holistic Health and Wellness business

• Go Franchisee route to increase more brand touch points

IMC Campaign

• Targeted at teenagers and urban working women

• Focused on range of products, premium imagery and value

• Sasa is the brand that you can look up to

Objective:To reach out to the teenageaudience, to move from theirconsideration set to the preferredretailer.

Desired response:To influence the beauty consciousteens to shop at Sasa.

Objective:Communication highlightingthe range of brands they stock. An exercise in associationbranding.

Desired response:Sasa is a premium retailer stocking the leading cosmeticbrands

Objective:To reiterate its discount retailingheritage.

Desired response:To drive home the point thatSasa is value for money.

Go Pink!