Branding through your Customers' mind. Desmond NG, Missha (HK) Limited

Transcription

1 Branding through your Customers' mind Desmond NG, Missha (HK) Limited

2 Missha Worldwide and HK

3 History 2000 Launched st shop opened in the Ewha University area - Seoul, Korea th shop opened in Korea st overseas shop opened in Sydney 2004 Opened in Hong Kong 2005 Listed public on KOSDAQ 2005 Opened in USA 2005 Opened in Japan 2006 Opened in China and Macau 2007 Launched online-shopping site shops opened in Korea shops opened in Korea th year Anniversary 2011 Over 1,000 shops opened worldwide

4 Core Value Creativity First exclusive brand shop in Korea First launching BB creams Pioneer of value-for-money cosmetics High Quality Products Ambitious R&D efforts Effective new product development Tight QC Customer Focus Simple distribution channels Customer-participation Quick response to customers Customer Satisfaction

5 Global Current global markets USA Japan China Australia Singapore Hong Kong/ Macau Taiwan Thailand Russia Malaysia Vietnam Indonesia Malta UAE Oman Bahrain KSA Mexico Venezuela Phlippines New Zealand Canada Laos Paraguay Romania Yemen Kyrgyzstan

6 Missha in HK 1 st shop in Dec shops 15 shops in HK 1 shop in Macau Over 700 SKUs, one-stop shopping Over 170,000 active members

7 Missha in

8 External Factors Development of Missha became slow Financial Crisis in 1997 Low price, high quality products were welcomed in the market Happy Price, Happy life, Quality base Economy of Asia recovered, purchasing power of customers increased Customers seeking for famous brands Keen competition in low-end market High-end brands were preferred by business partners

9 It is time to Change!

10 But

11 What What do our customers want? What do we want?

12 Customer Need Customer Solution Value

13 Brand Target High Strong Brands Price Difference Low Weak Brands Low now Target Value Difference High

14 Brand Value Brand Value Function Value Experience Value Self-Expressive Value

15 Self-expressive Value Me Image Brand

16 Contact with Customers The customers rely on: Direct use Shopping experience Words of mouth Media, etc

17 Stage 1 New brand positioning strategy Target mature ladies and office ladies Implementation of Middle class pricing strategy in regards to newly launched products Practice of brand strategy focusing on refined and quality improvement first

18 How???

19 8 Steps to Transforming Your Organization Sense of Urgency Vision Communication Empowerment Short-term wins More change New approaches Source: Leading Change: Why Transformation Efforts Fail, Harvard Business Review, by John P. Kotter, January 2007

20 Stage 1 Step 1: Vision Upgrade positioning and brand image From low-end brand to middle level Step 2: Support from top management

21 Stage 1 Execution in an aggressive way Change trademark to deliver the message of brand upgrading Gain confidence from the market Reconstruct sales network Upgrade shop interior design Upgrade promotion materials and message Upgrade product design

22 Change of Image

23 VIP system

24 Quality System 2 nd Check : Q.C. of product ingredients R&D 1 st Check : Factory Internal Q.C. Factory Approval After approval shipped to logistics center Logistics Center After approval shipped to nationwide locations Worldwide Product Development Team 3 rd Check : Q.C. of products 4 th Check On-site OC the finished product Approval Product Development Team

25 Product Design

26 Shop Design -- After

27 Stage 2 Good result of first stage of change Positive feedback from the market Full scale of reformation Stage 2 of Change Launch revolutionary product BB cream Change most of product lines Increase retail prices

28 Products

29 Further Development

30 Product Design

31 Shop Design

32 Shop Design

33 Today Korean 3 rd largest Cosmetic Group Over 28 countries/districts Over 1000 shops/counters Around 500 stores in Korea Over 430 stores in China Sold out over 8,000,000 pieces of BB Cream in 4 years Brand Awareness 98.9%

34 From Awareness to Market Share

35

36

37 Conclusion Change is always harsh Change is always here Welcome change, manage change Position the brand through customer s mind

38 Thanks!