Good afternoon and thank you for coming today. My name is Daphne Fu, and I'm the Project Manager in Taipei for Jackson&Wang. I'm here today to present our firm's marketing plan, which is designed to introduce EarthSound's products to the wealthy Taiwan market. Our research shows that there are big profits waiting in Taiwan, so we're excited at the opportunities we see for EarthSound. I hope that some of our excitement will rub off on all of you.
I'll start with a few facts and figures about the health and beauty products market in Taiwan. Next, I'll go over the standard types of advertising that have been successful for these products in Taiwan. Finally, I'll analyze current opportunities and give a few recommendations. A booklet of the marketing plan will be handed out after the
presentation, and it will give you all the details.
Because we all have tight schedules, I'd like to introduce the first point, the current state of Taiwan's health and beauty market...
I have prepared a short slide presentation to give you a picture of the Taiwan market. Please direct your attention to the screen behind me while I dim the lights.
The Taipei area, with a population of six million people, is the trendsetter for the nation. As you can see from these photos of people in the business area, both men and women are very style-conscious. They have an eye for glamour and good looks, and are willing to spend money to get the look they want. This next slide shows the beauty section of a typical drugstore; lots of famous brands from Japan, Europe, and the States, plus a broad range of domestic brands. Gentlemen, this is without a doubt a competitive market.
Moving on to Taipei's hairstyling salons... hmm, that slide seems to have been placed upside down. I'm sorry for the delay; it will only take a moment to flip the slide... There, that's better. As I was saying...
Most of Taiwan's hairstyling salons are full-service shops that have a regular
customer base. Taken as a group, the salons have moderate buying power when it comes to beauty products. The money they spend makes up 13.5% of the total yearly sales for the industry.
And the size of this market? Taiwan's twenty million people spent five-point-four
billion U.S. dollars on beauty products last year or two hundred and fifty dollars per capita. Salons accounted for four-hundred million of this total. Breaking the figures down even further, five out of every eight dollars were spent by women. One half of the total was
spent by people between the ages of nineteen and thirty-five. The last and most surprising statistic shows that teenagers spend the highest per capita total; at three-hundred twenty-three dollars, this is one-point-three times the total of the young adult market.
The statistics I've just given show that Taiwan is definitely a youth-oriented market, and will remain so for another ten years. The companies that successfully target this
segment have higher sales and larger market shares year in and year out. I've prepared a few diagrams showing which companies dominate the market, and the types of advertising they use to keep their sales.
This bar chart shows the top four companies and their market shares: the American Jonny&Jammy company leads the pack with 29%, followed by the domestic firm, V08, at 21%. The Japanese MARUMI is next with 17%, and the French company, La-Rose, is last with 12%. The next chart, a pie graph, shows a breakdown of their advertising: the largest wedge at 62% represents TV commercials; a quarter of their budget goes to magazine and newspaper ads, and the remainder is for purchasing advertising and posters placed in shops where their products are sold.
I know EarthSound has used all of these advertising methods successfully in the United States, and you may feel that what works in the States will work in Taiwan. This is definitely not the case. There are important differences between EarthSound's advertising and the advertising of successful companies in Taiwan.
EarthSound's slogan is, "EarthSound - the healthy alternative for you and the
environment," while V08's slogan is, "Thank you, V08, for making me beautiful." Why the difference? My calculations show that 85% of the American public believes they can do something to help the environment, but only 30% of Taiwan's people feel the same. America's politicians and its media have made people become aware of this issue. This has created a market for EarthSound's products. If Taiwan's politicians and media would do the same, then the people of Taiwan would be ready for EarthSound's advertising. This hasn't happened yet.
It's obvious that EarthSound will need to change its marketing strategy if it's to be successful in Taiwan. It will have to emphasize beauty and style more than health and the environment, but only in the first stages of the marketing campaign. Let me explain.
Taiwan is a society on the move. As the economy expands and cities grow,
people will face all the problems of a modern industrial society. In terms of environmental damage, people in Taiwan live with the same problems as people in Cleveland; and they're coming to the same conclusions. I predict that in two years, pollution will be the hottest issue in Taiwan. If EarthSound can establish itself now, it will be in a perfect
position to profit from Taiwan's changing views. In fact, I believe that five years from now,
EarthSound will be as successful in Taiwan as it is in the States, and for the same reasons; because it's the healthy alternative!
My point is that EarthSound needs to target two groups of consumers: adults and young adults. What's more, it should have two different advertising campaigns. The first campaign will be aimed at Taiwan's yuppies. These young professionals between the ages of 24 and 35 have sophisticated tastes. EarthSound should cater to their tastes when it first introduces its products. Beautiful models, expensive surroundings, and a feeling of high style all need to be part of every ad. You will find some examples in the booklet.
However, this is just the beginning. Our major long-term goal is to make
EarthSound the product of choice for consumers who care about themselves and the environment. To do this, we should set our sights on a younger market; people between the ages of 16 and 24. As I mentioned earlier, they spend a lot of money on beauty products, and they are Taiwan's future yuppies.
If EarthSound were to win over this group of adults and young adults, it would have an excellent long term future in Taiwan. Let me give you an idea of how EarthSound ought to advertise to these young people. Imagine that what follows is the first in a series of television commercials.
A group of Chinese students is visiting the States. Some American friends take them to a beautiful, wide open mountain wilderness. While camping by a lake, an
American girl loans a Chinese girl her EarthSound shampoo, and explains why she uses it. "This shampoo is all natural, just like this lake and these mountains. It's the healthy
alternative we need!" The Chinese girl uses it and, of course, her hair looks beautiful. As a going away gift, the American gives her Chinese friend a bottle of EarthSound shampoo. We recommend that future commercials feature this same Chinese girl. She will be EarthSound's "image" in Taiwan; a beautiful young woman who cares about keeping Taiwan beautiful.
Coax the consumers of Taiwan into buying this image and you'll have them lining up to buy EarthSound's products. And, gentlemen, Jackson&Wang has a long and successful track record when it comes to coaxing the people of Taiwan!
To sum up then, we feel that the Taiwan market is ready for EarthSound's unique line of products. Furthermore, we believe that EarthSound can win quick profits while, at the same time, build a customer base for the future. Achieving these goals will require a two step marketing campaign. The first step, aimed at adults, will be a traditional
campaign focusing on high class and sophisticated style. The second step will be aimed
at teenagers and young adults. For this group we'll gradually build EarthSound's image as the healthy alternative.
I'd like to conclude with a simple reminder. When you started this company on a shoestring, skeptics claimed that you wouldn't find a market. You've proved them wrong in the States, and you'll prove them wrong in Taiwan! Thank you for your time and attention. Are there any questions?
I see that Mr. Jacobs, VP for Marketing, has a question...
That's a good question. Mr. Jacobs asked if any other companies are using EarthSound's environmental angle. I'm happy to say that no one else is using this angle. By being the first company to introduce this marketing theme to Taiwan's beauty industry, EarthSound will instantly stand out as something new.
Do I see another question? Yes, Mr. Anderson.
Mr. Anderson asked for some figures on what college students spend yearly on beauty products. I'm afraid I don't have those figures on hand at the moment. If you don't mind waiting until Monday, I'll be able to fax you those figures when I'm back in Taipei.
I hate to call time here, but I know that all of you have another meeting in ten minutes. I'll be happy to meet any of you outside if you have further questions. Thank you once again.