lin chai- a creative brand manager

In third grade, our class had a “Hall of Fame” board. Everyone in the class had their name listed on it. Whenever a student was recognized for a big academic achievement, our teacher placed a red flower next to their name.

I never received a red flower that year.

I was completely focused on starting up my first business venture. The project was a newspaper. The cover of this portfolio displays an edition of that paper, which carried the title Entertainment Report.

Every issue was laid out by hand. My father would then print out copies at his office. With that newspaper, I discovered my passion for creating ideas and then working to make them a reality. Entertainment Report was a smash hit. Twenty-eight of my classmates subscribed to it, for a circulation rate of 67%. They had their red flowers. I had my newspaper.

This book is dedicated to that nine year old girl. She continues to live inside me, waking up everyday hungry to create ideas that touch people’s lives.

Education

VCU Brandcenter | Creative Brand Manager | Master of Science | May ’11 | Richmond, VA, U.S.VCU Brandcenter, considered the nation’s #1 Ad School (AdAge Creativity magazine) and one of the top 40 design schools worldwide (Businessweek), offers the Creative Brand Manager track that trains the CMOs of the future - the brand builders that consistently search for creative solutions.

‐ Worked in multidisciplinary teams to generate everything from a new perfume concept, to a digital platform that aids young adults in making face-to-face connections

‐ Learned to manage brands with an understanding of the creative process, and to make relevant internal and external communications‐ Acquired a skill set comprised of brand experience planning, qualitative and quantitative research, segmentation studies, competitive review, pricing rationale,

integrated communication plans, etc. ‐ Worked on real world brand innovation projects including NBC’s Syfy, Unilever’s AXE, Barrel Thief Wine Shop & Cafe, blurb.com, Richmond Time Dispatch,

Richmond Raiders Indoor Football Team

Communication University of China | B.A. in Digital Media Art | Jun ’08 | Beijing, China‐ Developed skills in storytelling and digital video production‐ RECIPIENT, Outstanding Student Leader Award (2007-2008)‐ Wrote and made the documentary film Kid-ages in Potsdam Germany, which won the Jury Award of 2006 Sino-Deutsch Summer Academy Program and

screened at the Berlin IFA exhibition show

ExperienceAccount Planning Intern, Saatchi & Saatchi X; Springdale, AR, U.S. (May ’10 - August ’10)

‐ Helped develop briefs for Procter & Gamble brands such as Pampers, Olay, and Covergirl ‐ Developed competitive analysis presentations on several Walmart initiatives ‐ Analyzed trends in social shopping and presented a POV on social commerce

Event Planner & Executor, Fresh Media Co. Ltd.; Beijing, China (January ’09 - June ’09)‐ Campaign manager for Sina.com (the largest infotainment web portal in China)‐ Developed digital strategy and social media initiatives for a national collegiate basketball promotion in 6 provinces & 36 campuses across China

Official Journalist, China International Animation Festival; Hangzhou, China (Spring ’07)‐ Interviewed 13 world famous animation artists from 6 different countries‐ Wrote news stories which enabled positive communication with diverse populations

First Assistant Director, INIT English TV commercial; Beijing, China ( March ’08 - May ’08)‐ Gained firsthand experience in all aspects of producing a TV commercial

Interests Postcard design, album cover design, DV shooting, Karaoke, Cooking and food sampling, Yoga, and traveling

[email protected]

LINCHAI.COM

I am a creative brand manager.

Netflix A Segmentation Study

Sun Crystals A Brand Positioning

Invest

igatio

ns

A creative brand manager is a pure blend of creativity and business smarts.

Understanding a brand’s

spirit

Discovering the real problem

Ebony A Brand Culture Analysis

Identifying the relevant

target market

Solutions

Reaching new customers

Launching in a new

market

Williams-SonomaAn Integrated Campaign

Hamilton Beach Brand Launching in China

Developing marketinginitiatives

Swift Runner SportA Case Study

Challenge Analysis of brand equity through examining its position in culture

January 2009

A Brand Culture Analysis

Owned by Johnson Publishing Company, the world’s largest 100 percent Black-owned publishing company

What they believe• More than 9 in 10 Blacks strongly agree that their race is important to them, while almost half say they trust Black media more than mainstream media.• Black media serves to celebrate and preserve traditional values of the Black community, values which bind the community together.

For Both Genders-Topics cover Black history/culture, social issues, entertainment, relationships, etc.-Stories feature successful African Americans;-Also highlights ordinary Black individuals who have made the American dream their own;-Half of the space is devoted to advertising

Unites the Black World-Founded to give voice to all dimensions of the Black personality in a world saturated with stereotypes;-Succeeded in redefining the Black image;-Celebrates the achievements and communicates the historical narratives that bind this community together.

A Circulation of 1.4 Million

The Target: middle class Black households •Subscribe out of respect “Ebony has always been for, by and about us”;•Subscribe “to adorn my homes coffee table” or “because my mom and grandma always do, not because I want to read it.”

Emotional ConnectionsNostalgic, encourages a sense of trust and community

“Ebony gave us our first mirror to see ourselves as a people of dignity, a people with intelligence and

beauty.”

Faithful

Respectable Inspira(onalSelf-esteem

Elderly

The Root: The 40 million

Black population

Imagine a giant tree rooted in African American culture for over half a century. Before it sprouted, American Blacks had been invisible in the mainstream media.

A Brand Culture Analysis

The Brand Challenge

Ebony emerged in an era quite unlike the present, which is a digital world. What is the revitalizing nourishment that can make this aging brand’s equity relevant to new generations?

A Brand Repositioning

Challenge Help Sun Crystals break into the sweetener industry

Team - CS:BowlesOctober 2010

Sun Crystals brings them together for the first time to create a 100% natural sweetener

Brand BackgroundMarketed by McNeil Nutritionals, LLC, a Johnson & Johnson company. This global marketer of innovative nutritional products also owns Splenda sweetener products.

What Are Sun Crystals

Stevia Sugar Cane

+ =

Natural and non-caloric sweetener

Industry

Artificial Sweeteners(680 mill)

Natural Sugar

Substitutes(232 mill)

Sugar(7 bill)

Trend

The CompetitionLook-alike brandsMarket Share ($)

All-natural sweetener

Product Benefitsall natural | 5 calories | same texture as sugar

healthier than sugar | tastier than stevia

Splenda(Atkins/South Beach)

Go natural(health/

organic craze)

Artificial sweeteners(diabetes/obesity)

1960’s 1999 2009Sugar

Since it’s FDA approval in 2008, the market has been flooded with stevia brands trying to stake their claim on the same thing.

All Natural / PureHealthy, “Guilt fee”

Taste greatDiabetic friendly

How are they saying it

GreenPlants

Simple / CleanRecipe suggestions

What they are saying

taste without guiltEmotional Benefits

But we’re not really saying anything different.

“ ”

Sun Crystal currently positions itself as a Stevia product. It’s really hard for it to stand out since it has 5 calories per package versus the 0-calories competitors.

Product Identity Crisis

Challenge

Compare to other Stevia products, Sun Crystal tastes and looks more like sugar. Considering that there are 5% tabletop sugar users switching to healthier sugar alternatives every year, which equals $700 million potential sales, it is good opportunity to target these sugar switchers.

Break away from the Stevia “sea of green”

The better way to have your sugar

Opportunity

In a market with familiar pink, blue and yellow packages, there is a great opportunity for Sun Crystals to own the idea of green packaging and become a fixture at the local cafes.

A Brand RepositioningProblem

Solution

The New Positioning

Coke faced a similar issue when introducing Coke Zero. It was positioned based on taste instead of its zero caloric benefits in order to reach regular soda drinkers.

Why this is true While it is all natural, low in calories, and diabetic friendly, Sun Crystals tastes like sugar. We conducted blind tests by making cookies with sugar, Sun Crystals, and Stevia to see if people could tell the difference. Most people had no idea which cookie was made with which sweetener, and several the chose Sun Crystals cookie as their favorite.

A lesson from Coke

A Segmentation Study

Challenge Identify and reach a customer segment that offers the most business potential

Team - CS:Liddiard | CS:Martin | CS:Clurman April 2010

Segmentation Study To identify segments among movie consumers, target the one that offers the most business potential for NETFLIX, and then recommend a communication strategy to reach them.

OBJECTIVE

APPROACH ‣ Focus group and in-depth Interviews to gain insights‣ Nationwide survey to quantify behavior and attitudes observed‣ Secondary research to understand the overall market

SEVERE COMPETITION Today, movie lovers have a myriad of op2ons for consuming their movies.

Online Streaming

iTunesMovielinkHulu

Movie Theatre

Mail

Blockbuster

DVD Purchase

Direct Access

Pay-per-viewVODApple TV

Brick-and-Mortar Store

BlockbusterRedboxHollywoodLocal stores

Moviegoers do not want to commit to a service, but rather use the one that best suits their spontaneous needs at a specific time.

NETFLIX’s monthly service plan does not suit people’s spontaneous movie consuming habit.

CONSUMER INSIGHTS

C H A L L E N G E S

CONSUMER SEGMENTS Four segments emerged, differentiated on the advice that consumers used to decide which movies to watch.

It’s got buzz

The critics loved it Refer to critic reviews and Cannes festival nominations

Heard it’s good

Rely on friends'recommendations

Why notDon’t really think about

what to watch

It’s got buzzCatch the latest box office hits

Why Not It’s Got Buzz Heard It’s Good The Critics Loved it

Movies per month 6+ 3-6 3-6 6+

Movie

Habits

More likely to watch it on TV channel

“ Lying on my couch and watching anything

mindlessly is a best way to relax.”

Hit the theater more often

“ I saw Twilight Saga as soon as

it came out ”

More likely to plan ahead

“ I plan my leisure time to get

the most from it ”

Spend more time on movie researches

“ I am proud to be the go-to person for

recommendations”Movie

HabitsMore open to try a new movieMore open to try a new movie Less open to try a new movieLess open to try a new movie

Movie

Habits

“ Movies are often my background.”

“ If my friends want to see a movie,

I am in.”

“ I prefer to wait awhile to see if my

friends like it.”

“ I am very picky about the movies I watch. I

would be a film critic.”

Attitudes

Planning makes entertainment an obligation.

Pizza, popcorn, friends, it’s a movie night!

Bad movie would screw up an evening

Checking movie reviews is my ritual

COMMUNICATION STRATEGY

WHY WOULD THEY COMMIT TO NETFLIX ?

Compared to its competitors, ONLY Netflix offers a customized recommendation system, which assures its users a movie that they will enjoy watching.

NETFLIX Cinemamatch is an accurate movie-recommending system that substantially improves the accuracy of predictions about how much someone is going to enjoy a movie.

NETFLIX helps users decide which movie to watch and connects them to movies they love.

Segment Select

Heard It’s GoodThey value the service that would make

finding new movies easy. Want to be told what they would like, not

forced to choose from another movie list.

Want to be told what they would like, not forced to choose from another movie list.

We get the difference between

the best movie and

the best movie for you.

A Segmentation Study

TACTICS 1

Allow customers to text the name of movies directly to

their accounts.

TACTICS 2

A widget that enables customers to post on Facebook

the movies recommended to them by Netflix. Then their

friends can comment on them and offer more suggestions.

Challenge Make an aging brand relevant to younger audience

Team - CT:Hankins | CW:Karczewski | CS:Martin | AD:SuApril 2011


‐

Founded in 1956, Williams-Sonoma is the premier specialty retailer of gourmet cookware in the United States.

- 40-65 years old- $100K+ HHI- Homeowners- Cook on a regular basis

They’re loyal to Williams-Sonoma because they love its warm, friendly environment.

They love to cook and they’re confident in the kitchen. But for them cooking isn’t about making

food as much as it is creating a feeling and creating a reason for their friends and family to come together.

“We cook to create a feeling. People come together around food.”

Our Target

- 25-34 years old- This is the first time they’ll be building a real kitchen for themselves- Eat out over 20 times per month.- Have seen Williams-Sonoma on wedding blogs, in wedding magazines, and at wedding planning events, and they’re already thinking about registering there.

They’re recently engaged and though they don’t know how to cook currently, they’re motivated to learn because they want their future home life to be similar to what the Seasoned Cooks have.

“ Cooking is a big part of creating a home.”

OBJECTIVE Convert more Dreamy Novices into Seasoned Cooks.

PROJECT Create an integrated brand campaign to connect younger customers to the Williams-Sonoma brand

After the wedding, the Dreamy Novices are often overwhelmed by the demands of marriage- having to compromise on every decision, and having to work as a team to accomplish their goals. Although they’re registering for cooking equipment, a lot of them won’t actually start cooking, so they won’t see the need to come back to William-Sonoma.

They are used to eating out every night and cooking feels like it will be time-consuming. What they don’t realize is that time spent in the kitchen is more valuable. Cooking together can be a great opportunity to have quality time with each other, share the load of meal preparation and clean up, have fun, and communicate effectively with each other.

ISSUE

Although they’re motivated to learn how to cook, they don’t know where to start.


STRATEGY

Show them cooking isn’t an insurmountable task.

Why cooking is an insurmountable task for them:❖ They don’t understand the complicated recipe language ❖ They don’t understand cooking terminology❖ The don’t know how to find the right ingredients they need at the grocery store❖ They don’t how to use the equipment they already have❖ When they both don’t know their way around kitchen, cooking together can be a big challenge

E-commerce accounts for a large part of Williams-Sonoma business. However, their current online experience is designed for the Seasoned Cooks who don’t need help and know how to find the right products.

We want to reinvent this experience to make it relevant for the Dreamy Novices who lack confidence in their kitchen skills and need assistance.

OPPORTUNITYCreate a digital experience that is tailored towards the Dreamy Novices

CREATIVE CONCEPT A digital platform provides guidance and erases

fear of the kitchen for novice cooks

By creating a personalized profile, adding in multiple cooks, skill levels, favorite food genres, and which cooking facilities you already have, users can start to use the app together in their kitchen.

➊

➋

➌

Many new cooks have trouble identifying the correct ingredients needed for recipes. To solve that problem this screen has writ ten and visual ingredient l ists. Users can also receive recommendations for the best local stores to purchase ingredients. Kitchen Counselor interpret the recipe terminologies into visual images that novice cooks can understand. It also creates different assignments when making a recipe, which enable multiple users to cook together.

This screen features a spli t window with independently sl iding top and bottom screens. These separate screens al low multiple cooks to view a recipe at their own pace, in order so that they can work together easi ly.


BRING THE EXPERIENCE TO THE GROCERY SHOPPING

IN STORES


COMMUNICATION

This it a special vow that newlyweds can send to their spouse as their commitment to join the kitchen counselor community and start learning to cook.

The print campaign will run in wedding magazines and blogs.


to a service and support provider.From a product supplier

5% increase in wedding registries per year5% x 200 registries/store x 259 stores= 2,590

sales increases in wedding registries2,590 x $4000 = $10,360,000

10% of couples participate in the program(51,800 + 2.590) x 10% = 5,439

If they acquire one more product from W-S per year,sales generated : $240 x 5,439 = $1,142,190

$200,000 investment including the design and cost of programming

Return on investment: $11,502,190

ROI

$10,360,000 + $1,142,190 = $11,502,190

Financial Justification

Challenge Create a marketing strategy based on a sound financial analysis

CBM Team - Rue|Welch|Powlesson

Swi; Runner Sports Case Study

March 2011

The Assignment Create a complete brand strategy recommendation for the online running retailer, Swift Runner Sports (SRS).

The Objective Increase frequency of purchase

Reach out to the existing customer base with the goal of having them purchase once more per year than they usually do

For 2008, SRS loses approximately 51% of their customers and must rely on new business to sustain growth. By focusing on loyalty and continuing current marketing channels, SRS can move more customers to purchase more than once per year. According to the data, if they are able to do this, they will be able to have less customers go dormant and will ultimately be able to focus less on acquiring new customers and will be able to grow the worth of existing customers.

Segment Customer Dormancy Returning

1/year 375,283 61% 146,361

2/year 103,472 41% 61,049

3/year 67,854 29% 48,177

4/year 34,871 22% 27,200

Total 581,480 282,787

The Direction Focus on the existing customers - ‘The Avid Runners.’

SRS serves the Avid Runner segment (18% of total runners). Avid runners typically shop at local running specialty stores and online.Avid Runners spend $8,140,000,000 annually. ($925/year x 8,800,000 Avid Runners.) Since SRS had revenue of $60 million last year, it can be determined that they have roughly 0.74% of market share in the Avid Runner segment.

As for people who are already customers to SRS, the frequency of purchases throughout the year increases the overall value of the customer. Currently, 36% of their customers purchase more than once per year and provide 61% of the revenue. Not only does the value of the customer increase 100% with one additional purchase, but it can also be assumed that fewer customers will fall dormant if they purchase more frequently during the year.

Defend SRS’s stake in the avid runner segment.

The StrategyFocus on customer relationships on a hyper-personal level

SRS’s superior service and understanding of client needs make it unique. Even as The Finish Line enters the market, they need to focus on what they do best, and will grow and increase credibility because people who work there are runners who care about runners.

The online local running store

Positioning

independent

tailored

credibleconvenient

Running is universal, but the experience is personal.

The driving insights

Strategic Platform

Site Customization Rewards

Guru

Pre | Post Consultations

Event Presence

365 Swiftrunner Traffic

Social Sharing

LoyaltySupport Acquisition

Profile

Engagement

The Invite

The Profile

The existing customers will receive an invitation to join the Swiftrunners’ club.

Their membership will start after they create their profile.

★ Recognize and leverage the most valuable customers, as well as broaden our consumer base by introducing engaging, fun, and rewarding programs.

★ Further develop in-depth profiles of existing members by gaining further insights into customer buying patterns, preferences and basket mix.

★ Recognize customers' individual milestones, as well as key retail events to deliver a personalized experience for members


Strategic Platform Swi-runners’ club

Site Customization Rewards

Guru

Pre | Post Consultations

Event Presence

365 Swiftrunner Traffic

Social Sharing

LoyaltySupport Acquisition

Profile

Engagement

The Invite

The Profile

The existing customers will receive an invitation to join the Swiftrunners’ club.

Their membership will start after they create their profile.

★ Recognize and leverage the most valuable customers, as well as broaden our consumer base by introducing engaging, fun, and rewarding programs.

★ Further develop in-depth profiles of existing members by gaining further insights into customer buying patterns, preferences and basket mix.

★ Recognize customers' individual milestones, as well as key retail events to deliver a personalized experience for members


The landing pageVisitors can choose to connect to their Facebook or just use their zip code to make the site geographically and seasonally relevant.

The New Online Experience

The site will provide highly relevant information such as weather report,

upcoming running events in their local community, and the most popular

products in their region.

Custom Site

The Guru SupportConsumers who participate in the Swiftrunners’ club have access to the personal consultancy service from our regionally based gurus.






Custom Site

The Guru SupportConsumers who participate in the Swiftrunners’ club have access to the personal consultancy service from our regionally based gurus. 11,000






Custom Site

The Guru SupportConsumers who participate in the Swiftrunners’ club have access to the personal consultancy service from our regionally based gurus. 11,000

The Rewards★ Rewards are based on posting feedback, inviting friends, and making a purchase★ Win double credits by making seasonal purchases or cross purchasing (e.g. shoes + apparel) The distribution of sales for SRS is slightly different from the industry. This leads us to believe there is room for more apparel sales.★ Accumulated credit can be used for free shipping, discounts, or limited version products★ Personalized coupons based on their preference and past purchases★ Celebrate and promote events that are specific to a member: anniversary of their first purchase, birthday, and every 300-500 milestone

Research shows runners need to change their shoes every 500 miles. A T-shirt will be sent to them to celebrate their achievement, and also remind them of their relationship with the Swift Runner Sports Brand.

Initiatives Evaluation Loyalty Program- Those who participated did so in quite a fashion, placing more orders than customers who participated, meaning the loyalty program encouraged many to purchase more frequently.- Of the number who were invited but did not participate, 85% of that number placed orders. Of those not invited, 83% placed orders, showing the loyalty program has a negligible effect unless one opts-in to actually participate.

- Incremental value of participant - $25.13.- Total incremental sales increase from participants - $312,089.

- Extrapolated to entire customer base of 552,406- 25% participation (in test)- Customers = 138,101 x IVoP

- $3,470,491 x 2 (6 mos. Duration)- Expected Revenue from Full Loyalty Program: $6,940,982 (incremental)

Free Shipping- 16% of those who received the email placed orders, compared to 14% of those who did NOT receive the email.- 42% of orders placed by email recipients received free shipping, meaning they achieved the $75 minimum.

- Cost to ship = $24,192- With costs factored into revenue, the incremental value of a customer who received the email is $1.39

- 48% of sales can be attributed to the 42% of orders receiving free shipping.

15% Off- 14.75% of those who received the email placed orders, compared to 13.4% of those who did NOT receive the email.- 32.5% of orders placed by email recipients received 15% off, meaning they achieved the $100 minimum.

- Revenues from 15% = (2,397 X 100) – 15% = $203,745- The incremental value of a customer who received the email is $1.24

- 40% of sales can be attributed to the 32.5% of orders receiving 15% off.


500K e e p

R u n n i n g

The Rewards★ Rewards are based on posting feedback, inviting friends, and making a purchase★ Win double credits by making seasonal purchases or cross purchasing (e.g. shoes + apparel) The distribution of sales for SRS is slightly different from the industry. This leads us to believe there is room for more apparel sales.★ Accumulated credit can be used for free shipping, discounts, or limited version products★ Personalized coupons based on their preference and past purchases★ Celebrate and promote events that are specific to a member: anniversary of their first purchase, birthday, and every 300-500 milestone

Research shows runners need to change their shoes every 500 miles. A T-shirt will be sent to them to celebrate their achievement, and also remind them of their relationship with the Swift Runner Sports Brand.

Initiatives Evaluation Loyalty Program- Those who participated did so in quite a fashion, placing more orders than customers who participated, meaning the loyalty program encouraged many to purchase more frequently.- Of the number who were invited but did not participate, 85% of that number placed orders. Of those not invited, 83% placed orders, showing the loyalty program has a negligible effect unless one opts-in to actually participate.

- Incremental value of participant - $25.13.- Total incremental sales increase from participants - $312,089.

- Extrapolated to entire customer base of 552,406- 25% participation (in test)- Customers = 138,101 x IVoP

- $3,470,491 x 2 (6 mos. Duration)- Expected Revenue from Full Loyalty Program: $6,940,982 (incremental)

Free Shipping- 16% of those who received the email placed orders, compared to 14% of those who did NOT receive the email.- 42% of orders placed by email recipients received free shipping, meaning they achieved the $75 minimum.

- Cost to ship = $24,192- With costs factored into revenue, the incremental value of a customer who received the email is $1.39

- 48% of sales can be attributed to the 42% of orders receiving free shipping.

15% Off- 14.75% of those who received the email placed orders, compared to 13.4% of those who did NOT receive the email.- 32.5% of orders placed by email recipients received 15% off, meaning they achieved the $100 minimum.

- Revenues from 15% = (2,397 X 100) – 15% = $203,745- The incremental value of a customer who received the email is $1.24

- 40% of sales can be attributed to the 32.5% of orders receiving 15% off.


Customer Lifetime AnalysisI. 1/yr | dormancy rate: 61% | Avg. order: $63.09 | Useful life (UL): 4 yearsII. 2/yr | dormancy rate: 41% | Avg. order: $62.90 | UL: 6-7 yearsIII. 3/yr | dormancy rate: 29% | Avg. order: $58.76 | UL: 9-10 yearsIV. 4/yr | dormancy rate: 22% | Avg. order: $74.23 | UL: 15+ years

With an SIP as the base, ratios of Customer Lifetime Value are as follows1/yr | 1 : 1 2/yr | 2.9 : 13/yr | 5.9 : 1 4/yr | 12.7 : 1

Financial Projections/ROI• Based off of the incremental value of participants in the loyalty program, $25.13• At the same level of participation with the entire consumer base (25%) = $3.47MM inincremental sales every 6 months, or $6.9MM per year.• Need a little under 11% of customers to participate to recuperate $3 MM investment in marketing (with incremental sales).

Launching in a New Market

Challenge Launch Hamilton Beach Brand in China

Independent Study Dec. 2010 - Apr. 2011

- Secondary research: Brand Audit and Existing Consumer Research Study, IBISWorld Industry Report, and Chinese Market information- Primary research: Online Survey, One-on-one Interviews, Competitive Analysis, Target Audience Segmentation Study, Cook-alongs, In-store Shopper Observation, and Shop-alongs

Research methodology

WHY CHINA

Total U.S. sales of small kitchen appliances, at inflation-adjusted prices, 2005-2010 ($ million)

0

500

1,000

1,500

2,000

2,500

2005 2006 2007 2008 2009 2010The declining profit margin

THE STAGNANT U.S. SMALL KITCHEN APPLIANCE MARKET THE BLOSSOMING CHINESE MARKET

•One of the largest yet least penetrated small appliance consumer

market in the world

• $12.4 Billion market size in 2008 with 23% growth rate

THE BURGEONING CHINESE MIDDLE CLASS

• High disposable income

• Changed consumer attitude

THE CULTURAL BACKGROUND

“HAVE YOU EATEN YET ?”

China is a country where appreciation of food has been developed to the highest level.

A Chinese way to greet each other

WHY CHINA

Total U.S. sales of small kitchen appliances, at inflation-adjusted prices, 2005-2010 ($ million)

0

500

1,000

1,500

2,000

2,500

2005 2006 2007 2008 2009 2010The declining profit margin

THE STAGNANT U.S. SMALL KITCHEN APPLIANCE MARKET THE BLOSSOMING CHINESE MARKET

•One of the largest yet least penetrated small appliance consumer

market in the world

• $12.4 Billion market size in 2008 with 23% growth rate

US market

Chinese Market

THE BURGEONING CHINESE MIDDLE CLASS

• High disposable income

• Changed consumer attitude

THE CULTURAL BACKGROUND

“HAVE YOU EATEN YET ?”

China is a country where appreciation of food has been developed to the highest level.

A Chinese way to greet each other

THE APPROACH

Rice Cooker Soy Milk Maker Mircowave Electrical Pressure Cooker

51.9

79.862.5

93.3

THE FOUR MOST POPULAR SKAS IN CHINA

The ownership in percentage

ESTABLISH THE BRAND NAME BY OWNING ONE CATEGORY

RICE COOKER

SOY MILK MAKE

MICROWAVE

ELECTRICAL PRESSURE COOKER

The top four players in the SKAS market in China established their names by owning one category then expanding to others

2,553,900 units of food preparation appliance sold in U.S. in 2008

There are only 4 product models available in China. They don’t work very well

What is next ?

FOOD PREPARATION SEGMENT

“It takes time, and needs great effort,patience, and skill.”

PREPARING A TYPICAL CHINESE MEAL


THE APPROACH


51.9

79.862.5

93.3




RICE COOKER

SOY MILK MAKE

MICROWAVE





What is next ?





THE APPROACH


51.9

79.862.5

93.3




RICE COOKER

SOY MILK MAKE

MICROWAVE





What is next ?





THE APPROACH


51.9

79.862.5

93.3




RICE COOKER

SOY MILK MAKE

MICROWAVE





What is next ?


1 - 1.5 hour




OPPORTUNITYIntroducing Hamilton Beach food processors to Chinese consumers. Improving upon the old ways to prepare food.

THE COOKING SEGMENTS

}SEGMENT SELECT“The Family Chef”

Employment Status: Employed

Average HHI: ¥150,000 ＝$ 22,059

High family involvement - “Family time is me time”

Local food market vs. grocery store

Home entertainment: TV

“Cooking is my contribution to my family. I’m

proud of my role as a family chef and

cooking makes me feel sophisticated.”

“It’s less of making the food, and more about

serving my family”

TARGET

THE FAMILY CHEF

What is important to them when cooking

- “A helping hand to work with me so I can quickly get the food on the table”

- “Products that are easy to use, efficient, versatile and practical”

- “Nutritious, gourmet meals that I can be proud of and my family will enjoy”

- “Fresh ingredients are an essential part of a healthy meal”

TARGET


BRANDING

THE POSITIONING STRATEGYThe easy to use and efficient appliance that takes the time out of food preparation, so that you are prepared for your family.

BRAND GUIDELINESApproachable, Show the Possibilities, Participation and High Involvement

NAMINGThe current name doesn’t translate into Chinese well ‣ Hard to pronounce ‣ Not Memorable ‣ Lack of association and implications

Good name can save a company

Hewlett-Packard Co.

休利特-帕卡尔惠普

VALUE RELEVANT

EMOTION EASE

PACKAGE REDESIGN

BRANDING

The 11 kitchen basics in a typical kitchen in China would be a refrigerator(1), a gas stove (2), a ventilation

system(3), a wok (4), cutting boards (5), a microwave (6), a rice cooker (7), a electrical kettle (8), a pressure

cooker (9), knives (10), and pots (often stored in the closet). A toaster or oven (11), soy milk maker, and

induction cooker are gaining ground among Chinese families.

Guidelines

Promote daily usages

Easy to store

Shield from dust

Effective use of limited countertop space

slide out when use

PRICE STRATEGYThe price consumers are willing to pay on food preparation devices

Entry Value¥329 = $48

Core Value¥499 = $73


DISTRIBUTION

RETAIL STRATEGY“Speak to me like you appreciate my role in the family and want to help”Driving insight:

Invite the “family chef” to experience the easy and skillful way to prepare their family’s favorite food

Shelf tags

Product demonstrations

Trade Shows

IN-STORE RETAIL TACTICS

IN-STORE

ONLINEONLINE TACTICS

- Direct mail- Cooking show- Informercials

- Search Engine- Cooking blogs

ROLL OUT PLAN

Test market: in five major cities

ROI

FUTURE

• Broader geographic presence• Expanding product distribution • Improvement on current products• Product innovation to broaden customer base

• Win Beyond Tier One Cities: Lower tier cities currently account for 87 percent of China’s population, but just 64 percent of retail sales. Consumers in these cities represent the next big opportunity for retailers and consumer goods manufacturers.


BUDGET

804-502-5247

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Documents

lin chai- a creative brand manager