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BMA 5009
FM2(Group4)
Bawang in Singapore
For Professor Leong Siew Meng
NI CHUN (HT095582N)
NIRMALYA MAITRA (HT095519M)
PAYAL KESWANI (HT095520Y)
PETER LEE SHUN TA (HT095467E)
PETTAS KYRIAKOS (HT095568A)
RAHUL MAHESH GUPTA (HT095522X)
ROLAND CRISPIAN LIM (HT095524W)
SANAT VALLIKAPPEN (HT095525H)
Table of Contents
Introduction….......................................................................................................................3 Bawang Milestones…...........................................................................................................4 Bawang in China.................................................................................................................. 5 Hair Loss and its Psychological Effects.............................................................................8 The Singapore Hair Care Market……………………………………………………….10 Porter’s5-Forces Analysis of Bawang……………………………………………………13 SWOT Analysis of Bawang in Singapore………………………………………………. 14 Segmentation, Targeting and Positioning……………………………………………….18 Consumer Survey…………………………………………………………………………20 Financial Analysis…………………………………………………………………………27 Recommendations………………………………………………………………………... 31 Controls……………………………………………………………………………………39
Introduction
Bawang International (Group) Holding Limited
(Bawang), headquartered in Guangzhou, China, is a
Hong Kong Stock Exchange-listed manufacturer and
distributor of Chinese herbal shampoo and hair care
products as well as other home and personal care
products. It has come to be recognized as a leading
shampoo brand in the People’s Republic of China
(PRC).
In September 2008, Bawang1 entered into an exclusive distribution agreement with Hannah
Holdings Pte Ltd, an independent third party distributor of health and beauty products in
Singapore since 2004. This agreement to market and distribute Bawang’s flagship brand,
known by the same name, is for three years, extendable by another three.
Hannah is supported by a vast distribution network of about one thousand distribution points
island-wide and in 2005, Trim Slim, one of the products it distributes, won the “Best selling
slimming tummy tablets” at Guardian’s prestigious Health & Beauty Awards. In 2006,
Mygenlife Ultimate Detox, another product Hannah distributed, won the “Best selling detox
product” at the same event. On the face of it, Hannah appears capable of getting Bawang, the
traditional Chinese brand, into the hearts and minds of consumers in Singapore.
However, based on the group’s interview with Mr. David Tan, the CEO of Hannah
(Appendix A), we learnt that Bawang is far from replicating its PRC success in Singapore.
1 In this report, the name Bawang is used interchangeably for the company as well as for a brand of shampoos that the company manufactures and distributes.
Its share at the end of 2008 was around 2.6 percent (on a pro rata basis)2 of the entire
Singapore shampoo market, despite shelf presence across almost all the major retail stores.
Hannah also revealed that Bawang is yet to take up any marketing initiative specific to
Singapore. The parent company Bawang relies entirely on Hannah to sell its namesake brand
products in Singapore. We intend to discuss the specifics of the Singapore hair care market
and how Bawang can go about creating an effective marketing strategy that conveys the value
proposition that its products offer.
Bawang Milestones
1928 – Chairman Chen Qiyuan’s great grandfather, a 16th generation member of a family
with a long history of research into Chinese traditional herbal products, established a
small plant in Guangdong province in southeastern China to produce herbal hair care
products
May 1989 – Bawang International (Group) Holding Limited was founded by Chen
Qiyuan, and it launched its flagship product Bawang.
2002 - Bawang Guangzhou, as the Chinese operating company is called, started Bawang
Industry City, a modern production site in Guangzhou, of over 10,000 square metres.
2005 - Appointed well-known Hong Kong action movie star Jackie Chan to be its brand
ambassador, helping the Bawang brand achieve a premium position as a herbal shampoo
brand.
After 2005 - Bawang set up an extensive distribution and retail network comprising 567
distributors and 46 retailers, covering 24 provinces and four municipalities in the PRC as
well as Hong Kong and Macau.
2 Total shampoo market size in 2008 was SGD 45.9 million
September 2008 – Entered Singapore through a distribution agreement with
Hannah Holdings Pte Ltd.
November 2008 - The construction of a new production base near Guangzhou’s new
Baiyun airport was commenced. It will have an area of over 200,000 square metres and
will strengthen the R&D and production capabilities of Bawang.
May 2009 - Got Chinese singing sensation Faye Wong to endorse a new brand, Royal
Wind, in China.
July 2009 - IPO on the Hong Kong Stock Exchange raised HK$ 1.67 billion (US$ 213.6
million). Refer to Exhibit A for the Corporate Structure before the IPO.
Bawang in China
Products: Bawang sells its Chinese herbal shampoo and hair care products under the Bawang
(hair-loss shampoo mainly targeted at males), and Royal Wind brands (female anti-dandruff
shampoo), and its non-herbal shampoo under the Litao brand. It also sells skin care products
under the trade name Smerry. In China’s overall hair care segment, Bawang increased its
sector share from well below 1% in 2004 to 5% in 2008, overtaking La Fang International
Group as the fourth largest hair care player in the country. This is thanks to its above-average
growth in shampoo sales, from less than RMB (renminbi) 50 million in 2005 to RMB 1
billion in 2008. However, it still lags P&G, C-Bons Group and Unilever, all three of which
have more diversified product lines than Bawang.
In the herbal shampoo market, Bawang is clearly the leader in China. Its market share in this
category in the PRC in terms of retail sales in 2006, 2007 and the first half of 2008 were
approximately 24.3%, 43.5% and 46.3%, respectively, far ahead of the No. 2 player.
Although the company markets its products under four different brands, 94% of its revenues
come from its flagship Bawang brand products. In 2008, Bawang posted a net profit of 281.8
million yuan (USD 41.27 million) in 2008, a 55.4% increase from the 181.3 million yuan
(USD 26.55 million) reported in 2007.
Product differentiation: Bawang differentiates its products using the TCM (Traditional
Chinese Medicine) formula with natural herbal ingredients in all of its hair care products as
compared to primarily Western FMCG brands such as Procter & Gamble and Unilever which
use chemical formula.3
The Chinese perceive natural herbal ingredients as a healthy alternative to chemical formulae.
They are familiar with such ingredients and aware of their medicinal qualities. For instance,
black sesame seed is widely known to be an effective herb in enriching the blackness of the
hair when consumed as a supplement in food and medicine. In contrast, most consumers
possess very limited knowledge of the composition and benefits of chemical ingredients put
in most non-TCM shampoo products.
Prior to Bawang’s entry into the hair-loss shampoo market in 1989, there was an absence of
any leading brand in such a niche area of HPC (household and personal care) products. In
addition to the use of herbal ingredients, Bawang has strong proprietary R&D capabilities to
develop products and ingredients suited for different types of hair fall. For instance, the
Bawang anti-hair fall shampoo is effective for the following cases of hair fall: seborrheic
alopecia (hair fall due to excess secretion of sebum on the scalp), androgenic hormone
baldness (hair fall due to excess secretion of androgenic hormone on the scalp), pathological
baldness (hair fall due to an imbalance of microelements on the scalp) and any other types of
hair fall (hair fall due to work stress, environmental pollution, incorrect methods of hair wash
3 Bawang has listed a number of herbal ingredients commonly found in its shampoo products with explanations of each of the herbs as well as the medical qualities. The herbs are: 1) Cacumen Platycladi 2) fleece-flower root 3) Drynaria 4) Ginseng 5) Eclipta 6) Black Sesame Seeds 7) Ganoderma lucidum 8) Angelica 9) Ginger 10) Gleditsia 11) Tea Seed 12) Chinese Arborvitae Leaf http://smerry.com.cn
and perming).4 Bawang emphasizes on its TCM roots and high product quality to justify its
middle-high pricing strategy in China. These combined features are crucial in differentiating
Bawang from both domestic and foreign brands in China.
Marketing efforts: Bawang’s marketing strategy has involved high-profile celebrity
endorsements to convey the quality of its products to the target market, primarily consisting
of male, middle-income consumers who are interested in its flagship anti-hair loss products.
In a coup of sorts, beginning 2005, Bawang got one of China's most famous middle-aged
men, international Kung-Fu action star Jackie Chan, to endorse its herbal products. The
combination of TCM herbal ingredient formula and Chinese Kung Fu proved to be a winning
formula and most people identified Bawang as a trustworthy Chinese brand with high-quality
products. Bawang also roped in 40-year old singing sensation Faye Wong, in 2009 as brand
ambassador for its Royal Wind brand and its recently launched skin care products.
Bawang has also successfully implemented integrated marketing techniques to reach the
Chinese consumer.
(i) Television commercials and sponsorship of television programs
(ii) Advertising in newspapers, magazines, the internet, public transportation,
billboards, banners and kiosks.
(iii) Strategically selecting suitable celebrities as brand ambassadors
(iv) Organizing regular and frequent in-store marketing activities and roadshows
(v) Attending Chinese herbal-related events to market its products
(vi) Investing in R&D facilities, cooperating with universities and Chinese
government authorities
4 Information on hair fall cases is taken and translated from Bawang’s Chinese website
Hair Loss and its Psychological Effects
Alopecia, as hair loss is scientifically referred to as, can be
caused by aging, heredity/genetics, stress, illness, hormonal
changes, pregnancy, birth control pill usage, and
chemotherapy.
Hair loss often affects a person's self-esteem and its discovery can be a stressful experience
for both sexes. Hair loss causes both men and women to look older. For many, hair loss
signals the end of youth and sex appeal. In a study conducted in 2005 to identify the impact
of hair loss on the self-esteem of men aged 18 to 45 in five European countries, 70 percent of
the 1536 men surveyed considered hair to be an important feature of image and 62 percent
agreed that hair loss could affect self-esteem. The study also revealed that men who had
more profound hair loss were more dissatisfied with their appearance and were more
concerned with their older look than those with minimal hair loss. The same goes for
women. In fact, a 1992 study in the Journal of the American Academy of Dermatology that
compared the psychological impact of hair loss on men and women found that women were
less able to come to terms with hair loss.
Hair Loss in Singapore
An estimated 469,000 people (9.8 percent of the total population) in Singapore suffer from
hair loss, of which half are women. Hereditary hair loss makes up about 63 percent of local
hair loss cases. In addition, a 2004 survey, commissioned by Pfizer Consumer Healthcare,
found that 30 percent of Singaporeans who lose their hair are psychologically affected by it.
While genes explain a large part of the hair loss problem in Singapore, it is widely believed
though not empirically proven that NEWater - sewage water treated with chemicals - is also
instrumental. The NEWater project was commissioned in 1998 as a joint venture initiative
between the Public Utilities Board (PUB) and the Ministry of Environment and Water
Resources (MEWR) and was initially designed to meet Singapore’s non-potable water needs.
However, since 2002, NEWater is being blended with fresh water from Singapore’s
reservoirs for drinking purposes. The following are excerpts from a blog posted on the
website of Singapore Hair Loss Support Group, which expresses concerns about NEWater: “I
have heard quite a number of people who spoke to me on their beliefs that NEWater is
contributing to the increasing hair loss situation (sic) in Singaporeans. Well, there is no
proof of this premise unless the relevant authorities shed some light on what chemicals have
been added to Newater, and whether these harm our hair follicles and cause thinning of
hair.” The blogger goes on to say that he believes that since it was only some years ago that
NEWater was introduced into Singapore’s reservoirs, and it was around that same time that
more and more Singaporeans started balding, he has reason to believe that it is indeed
NEWater that’s adding to the Singaporean’s hair loss woes.
In a survey conducted by iAremyhair from 2007 to 2008 (Exhibit B), 71 percent of the 178
Singaporeans surveyed believed they were suffering from hair loss. Yet, 39 percent of the
respondents felt that hair loss could not be cured while 45 percent were unsure whether it
could be cured. Nonetheless, 62 percent of the survey pool felt that hair loss would have a
negative impact on their social lives and careers. In fact, 69 percent of the respondents said
that they were willing to trade a personal possession for more hair. When asked what they
would be willing to trade, 36 percent said they would trade items like mobile phones and 16
percent were willing to trade an expensive car!
It is therefore not surprising that the hair loss treatment category saw the fastest current value
growth (at 6 percent) in Singapore’s medicated skin care business in 2008. Moreover, the
sales of hair loss treatment products are forecasted to grow at 16 percent within the next five
years due to Singapore’s aging population (Exhibit C).
The Singapore Hair Care Market
The shampoo market in Singapore has been growing at almost a constant rate, with about 1.9
million litres of Shampoo purchased every year. As consumers have become increasingly
affluent, they are no longer satisfied with cosmetics and toiletries providing basic features,
but demand products with additional benefits or improved performance.
Following are the key notes from the current shampoo market:
- Hair care products experienced 5 percent current value growth in the last year to reach
sales of SGD 135 million in 2008
- Consumers are increasingly keen to use special treatments on their hair
- Conditioners saw the fastest current value growth of 8 percent in 2008
- Unit prices of hair care products increase in 2008 due to improved products
- L'Oréal (S) Pte Ltd led hair care products category with a 22 percent value share in
2008
- The hair care market is expected to grow by a CAGR of 2 percent in constant value
terms over the coming year
International manufacturers dominated hair care in 2008, due to their wide product ranges
and innovative product launches. Further, larger budgets from international manufacturers
also meant that they were able to spend more on marketing campaigns for their products to
raise awareness amongst consumers (refer to Exhibit D for market shares).
Market Trends: Consumers are becoming more image-conscious and are no longer satisfied
with the usual shampoo and conditioning routine. Instead, they look for hair masks and
treatments which provided an extra moisturizing effect compared with standard conditioners.
Hair care products saw slower current value growth in 2008 than in 2007, as hair care
categories such as shampoo already had full penetration. The poor sales performance of two-
in-one (shampoo and conditioner) products also stifled the overall growth of hair care in
2008. Value growth in 2008 came mostly from consumers switching up to more expensive
conditioners.
Conditioners saw the fastest volume and current value growth in 2008, due to the increasing
number of image-conscious consumers who switched up to more expensive hair masks and
treatments to provide extra moisture for their hair. Active product launches such as Liese
Hair Cocktail by Kao (S) Pte Ltd and Pantene Pro-V 3 Minute Miracle Treatment by Procter
& Gamble (S) Pte Ltd further boosted the growth of conditioners in 2008.
Unit prices of hair care products increased in 2008, as consumers were increasingly willing to
pay more. Many consumers switched up to premium brands that promised greater benefits.
Besides, many consumers also looked for more expensive hair treatment products.
Two-in-one products saw the fastest decline in current value terms in 2008, as there were
increasing numbers of consumers who switched from using two-in-one products to using a
separate shampoo and conditioner.
Estée Lauder Cosmetics Pte Ltd launched Origins Organics in April. This range includes hair
care products which use only certified organic ingredients grown in rich, natural soils without
the use of toxic pesticides. L'Oréal (S) Pte Ltd also launched Elsève Damage Care, which
includes shampoo and conditioners. It also carries hair treatments which repair damaged hair.
Sales of Hair Care Products by Subsector: Value 2003-2008
S$ million 2003 2004 2005 2006 2007 2008 Shampoo 36.4 37.9 39.5 41.4 43.9 45.9
2-in-1 products 4.3 4 3.8 3.5 1.9 1.7 Conditioners 18.1 19 20.1 21.6 24 25.8 Styling agents 7.8 8.8 11 11.6 12.4 13
Colourants 11.7 12.2 12.7 13.2 13.6 13.9 Salon hair care 24.9 26.7 28.7 31 33 34.6
Hair care 103.2 108.6 115.8 122.3 128.8 134.9 Source: Official statistics, trade associations, trade press, company research, trade interviews, Euromonitor International estimates
Market Prospects: Consumers have become increasingly beauty-conscious and hair
treatments and masks will become more popular. Manufacturers will be looking to introduce
more such innovative products. However, as hair care products have already achieved high
penetration, growth in categories such as shampoo will be limited. Also, two-in-one products
are expected to continue to see a decline. Nevertheless, growing image-consciousness
amongst consumers will see them more willing to choose hair treatment products.
The recent economic slowdown has no doubt punched a hole in consumer wallets, making
them more cost-conscious. They will more likely buy premium products from beauty
specialist retailers, who offer such products at cheaper rates. That may suppress the growth of
the hair care market.
There is also the likelihood of consumers, who till 2008 had been
switching to premium products and salon hair care, moving back to
mass hair care products. Buying cheaper products and buying from
channels that offer more price discounts will likely erode the unit
price. But as green shoots start to emerge, as they indeed have been, 2010 could offer a few
rays of sunshine for the hair care industry.
Herbal Shampoo: In spite of a growing demand for natural hair care products, there are
hardly any products available in the Singapore market. Traditional Chinese herbal products
have been growing in popularity in the island nation, but purchases have to be made online or
through small traders.
The significant other herbal shampoo being sold in Singapore is Clairol Herbal Essences by
Procter and Gamble, but it only addresses issues of hair smoothening and shining.
Porter’s 5-Forces Analysis of Bawang
Threat of Substitution – In this extra-competitive world, where new products with improved
features are introduced on a regular basis, Bawang faces the threat of substitution. If the new
product comes with a lower price tag, but has the same effectiveness, the danger of
substitution is exacerbated. To mitigate this effect, Bawang should always price aggressively.
It should also think of innovating and improvising and try keep production costs to the
minimum in order to price effectively.
Bargaining power of buyers – In the shampoo industry, buyers have good bargaining power
as the market is flooded with an unimaginable number of varieties. Besides, the cost of
switching brands is not high. To mitigate this risk, Bawang should increase its brand loyalty
among consumers. It can do so by promising quality and over-delivering. It should also focus
on addressing to consumer complaints swiftly and efficiently.
Bargaining power of suppliers – Bawang’s raw materials primarily consist of (i) Chinese
herbs such as polygonum, ginseng, Chinese honeylocust, Chinese arborvitae and euphorbia
hirta, (ii) surfactant, (iii) coconut oil, (iv) fragrance.
The company currently has two suppliers for each of these raw materials. In order to reduce
the bargaining power of suppliers, Bawang should increase the number of suppliers for each
ingredient. Also, Bawang should focus on building supplier relationships so that it becomes
awkward for suppliers to demand undue prices.
Threat of new entry – Bawang faces a threat from new entrants to the herbal shampoo
market. It must erect strong entry barriers by working on patents and proprietary knowledge
and technology. Customer loyalty, product differentiation, market share, capacity and access
to distribution channels are other entry barriers that Bawang can work on.
Competitive Rivalry – There are many players in the industry and many of them provide
attractive products and deals. If the buyers don’t get a good deal from Bawang, there are fair
chances of them switching to competitors’ products. To circumvent this, Bawang should
focus on product differentiation, relationship management, pricing strategy and distribution
channels.
SWOT Analysis of Bawang in Singapore
Strengths
Strong product research and development centre – In China, Bawang maintains a
competitive edge by striving to continuously diversify its product offerings and upgrade
existing products. It adapts to the ever-changing market trends by offering Chinese herbal
HPC (hair and personal care) products that match consumer preferences. Its proprietary
formulae, technology, accumulated experience and knowledge of the Chinese herbal
shampoo and hair care products market in the PRC, gives it a proven track record of
developing quality Chinese herbal shampoo and hair care products. Between 2006 and 2008,
it has developed and launched 36 new products under the Bawang umbrella. We believe its
focus on research and development has helped make Bawang a leading brand in Chinese
herbal shampoo in the PRC. This research is coupled with the right marketing initiatives, that
day may not be far when Bawang is recognized as the No. 1 Chinese herbal brand in
Singapore.
Quality products – Bawang emphasizes on the quality of its
products and adopts stringent quality control measures in the
selection of raw materials, packaging materials and throughout its
production process. It has stringent criteria based on which it selects
suppliers, and has rigorous inspection policies to check on quality of
raw materials and packaging materials. It received ISO 9001 quality management system
certification in 2007, and believes that setting the benchmark high can assure the quality of
products, thus enhancing its reputation.
Singapore distributor Hannah - Hannah has a strong reputation in Singapore. It is
supported by a vast network of 1000 distribution points in Singapore and has established a
reputation for launching winning products in the marketplace. In Singapore, Bawang can be
found in department stores (eg. OG, CK), pharmacies (eg. Watsons, Unity), supermarkets
(eg. Mustafa, NTUC Fairprice, Econ Mini Mart) and Chinese medicine stores (eg. ZTP).
Brand and product mix - Bawang offers an extensive range of hair care products to
consumers. In 2009, Bawang launched its Royal Wind brand, encompassing an anti-dandruff
shampoo under the same Chinese herbal concept in the PRC. Bawang also manufactures and
distributes non-herbal shampoo under the Litao brand and skin care products under Smerry.
While at one end, successful multiple brands in the PRC acts as a cushion to offset any initial
losses that Bawang may face in Singapore, at the other, if these other brands are introduced in
Singapore, and become successful, Bawang can piggyback on their success and command
more credibility.
Weaknesses
Lack of effective marketing strategies – Bawang does not have strong marketing strategies
for Singapore. It is not focused on brand awareness and advertisement in this new market,
and relies heavily on the distribution muscle of Hannah, its sole distributor.
Higher costs of production – Bawang manufactures all its products at its current production
unit located in Baiyun District in Guangzhou. That it has to ship its products to Singapore,
adds to unit costs.
Opportunities
Untapped market – Although the Singapore shampoo market is rather crowded, there is a
large untapped market for herbal hair care products. There are no significant players
providing cost-effective herbal hair care solutions. Bawang can tap into this market and gain
the first mover advantage.
Cross-selling – Bawang can leverage its success in hair-loss shampoo products to target and
attract female consumers with its Royal Wind anti-dandruff shampoo brand.
Threats
Competition – Bawang faces competition from well-established international and domestic
brands in Singapore. It competes with other brands in areas such as brand recognition,
business scale, research and development capability, market positioning, product variety,
product quality, marketing and promotion, price and the ability to respond to customers’
needs and preferences. Also, its products have limited operating history when compared to
some of the long-standing and well-recognized international brands present in Singapore.
Consumer preferences and consumption patterns - Bawang’s success depends on
consumers’ inclination or otherwise towards hair care products with Chinese herbal
ingredients. However, consumer preferences are fickle and consumption patterns constantly
change. If the company fails to predict or meet consumer preferences or demand, then its
products may lose competitive advantage. Consumer preferences could shift away from hair
care products with traditional Chinese ingredients for the following reasons:
(i) Consumers believing claims made by chemical-based shampoo producers that
their products have pharmacological benefits
(ii) Any negative publicity relating to Chinese herbal or related products.
Costs of raw and packaging materials - Costs of raw and packaging materials represent a
significant portion of Bawang’s revenue. For each of the years ended 31 December 2006,
2007 and 2008, these costs represented 39.5%, 42.8% and 32.1%, respectively, of its revenue.
Any significant fluctuation in prices of these materials may have a significant impact on the
company’s profitability. Raw materials include Chinese herbs, surfactant, coconut oil and
fragrance, and packaging materials include plastic bottles, paper boxes and labels.
Segmentation, Targeting and Positioning
Segmentation
Hannah, Bawang’s distributor in Singapore has adopted the
strategy of mass marketing. Although this strategy may have been
used to introduce the product and generate awareness, this
approach is unlikely to yield dividends in the long run as it has to
position itself in an already saturated market and compete against
large multinationals. This latter group extensively marketed its products through the
evolution phase of the Singapore market, and has captured considerable brand loyalty.
Bawang has the potential of greater market penetration if attempts to segment the Singapore
market and devise appropriate strategies to target each segment. The Singapore market can be
segmented based on various parameters:
a. Demographic segmentation: Bawang can look to divide the market by demographic
parameters such as age and life cycle stage, gender, income levels and nationality.
b. Behavioral segmentation: Bawang can also look to segment the market based on
behavioral patterns such as frequency of usage, benefits, loyalty status and attitude.
Targeting
Bawang should target the market segments with two clear objectives:
a. Sustenance of existing market share: For this, it should target that segment which
already uses Bawang products.
b. Achieving market penetration: To achieve this, Bawang should first target the
population segment that is unaware of the product. This segment should be further
broken down into those who prefer herbal products over synthetic ones. Bawang can
also target consumers who, though aware of Bawang, are non-users, since their brand
loyalties lie elsewhere. The part of this consumer segment that might be willing to
shift to a herbal hair care solution can also be a lucrative target segment for Bawang.
Based on the above parameters, Bawang can break down the target into niche market
segments. The segments in Singapore seem to satisfy all required conditions for such niching
to be effective.
1. Measurable: The size of the segments can be measured by combining primary data
obtained through surveys and combining that with secondary demographics data.
2. Substantial: Given that 469,000 people in Singapore suffer from hair loss and the
increasing popularity of herbal products in Singapore, it is easy to conclude that the
target segment will be significantly large and hence profitable to serve.
3. Accessible: These sections of the population are easy to access through various forms
of awareness campaigns.
4. Differentiable: The segments are distinguishable on the basis of their awareness and
level of loyalty towards the product.
5. Actionable: Each segment can be targeted by formulating effective marketing
programs.
Positioning
Having identified the target segments, Bawang can position itself with a unique image to
capture maximum penetration in each segment. In Singapore, Bawang enjoys a unique
advantage in that there are no similar products available for sale in retail stores. The only
products that belong in the same category are the minuscule number of herbal shampoos sold
online. As such, Bawang has the unique positioning opportunity in the general shampoo and
hair care products segment, and yet differentiate itself based on its unique use of Chinese
herbs for hair treatment.
Consumer Survey
In order to evaluate the current perception about Bawang as well as its potential in the
Singapore market, a survey was conducted. This helped us detect the size of the potential
market, the participants in this market, and the hair loss shampoos Bawang is competing
against, if any. The survey also helped us estimate product awareness and users’ opinions
regarding several of Bawang’s attributes. The questions and responses from the survey
follow:
Do you suspect you have a hair-loss problem?
67.9 percent of the participants
believe they have a hair loss
problem. This is mostly
applicable to men rather than women, although the
average age of men in the sample is only one year higher
than that of women - 27.3 versus 26.3. The question captures whether the participants
suspect they have a hair loss problem rather than being diagnosed with one. In fact, less than
10 percent of Singaporeans are estimated to be suffering from hair loss. Based on the
response, we infer that there is a potential market for hair-loss combating solutions in the
Singapore market, on of them being anti-hair loss shampoos.
Yes No
Male 72.7 27.3
Female 63.6 36.4
TOTAL 67.9 32.1
Do you use a hair loss shampoo?
Almost half the participants use a hair-loss shampoo.
They use one on a parallel basis with other shampoos,
regardless of whether or not they have hair-loss issues.
More specifically, only 68.4 percent of individuals
believing to suffer from hair loss use a shampoo in order
to treat it. The remaining 31.6 percent do not use one,
although they believe the problem is present.
Interestingly, 22.2 percent of shampoo users who said they did not have a hair loss problem,
use an anti-hair loss shampoo. Precaution is perhaps the reason for this choice. This implies
that the market for Bawang is in fact beyond consumers facing hair loss problems.
If you are using a hair loss shampoo, which one do you use? (Choose up to 3)
SHAMPOO Pantene
(P&G)
Bawang H & S
(P&G)
Sunsilk
(Unilever)
Phyto Foltene Other
Frequency
(%) 33.3 26.7 20.0 13.3 6.7 6.7 33.3
Bawang is preferred by 26.7 percent of hair loss shampoo users. The
rest of the market is dominated by brands such as Pantene (33.3%),
Head & Shoulders (20%), as well as Sunsilk (13.3%). Notably 73.3
percent of the participants use Procter and Gamble anti-hair loss
shampoos (Pantene and H&S). Although participants using
Hair loss Shampoo
No Hair loss
Shampoo
Hair loss
68.4 31.6
No hair loss
22.2 77.8
TOTAL 53.6 46.4
shampoos other than Bawang would also include others in their list, 75 percent of Bawang
consumers use it on an exclusive basis.
If you had to use a hair loss shampoo, which one would you choose? (Choose up to 3)
SHAMPOO Pantene
(P&G)
Sunsilk
(Unilev)
H & S
(P&G)
Clear
(Unilev)
Bawang Vichy Dercos
Other
Frequency
(%) 46.2 46.2 30.8 15.4 7.7 7.7 7.7
Participants preferred Pantene, Sunsilk and H&S. Only 7.7 percent chose Bawang from the
list. Pantene, Sunsilk and Clear explicitly state on their respective bottles that they help
prevent hair loss caused by hair breakage; not hair falling from the root. Bawang should
consider investigating the ‘root’ problem, see if consumers prefer that as an attribute in hair
loss shampoos, and possibly use that as one of its points of difference (POD) while
communicating about the brand.
Have you heard of Bawang?
Only 32 percent of the participants had heard of
Bawang. The fact that 26.7 percent of hair loss suffering
and hair loss shampoo users use Bawang means that
only (32-26.7) 5.3 percent of the hair loss suffering consumers who are aware of its existence
do not use it. In other words, once the shampoo’s existence becomes known, it has a high
probability of being used. Bawang certainly needs to make consumers more aware of its
existence.
Yes No
TOTAL 32 68
Via which media did you hear about Bawang?
MEDIA W.O.M. Newspaper TV Magazine Radio Other
Frequency (%) 66.7 11.1 11.1 11.1 0 7.7
The vast majority of consumers heard about Bawang via word of
mouth. The frequency in which brand awareness was created though
newspapers, magazines, television ads and other sources was 41.1
percent. Though it is hard to attribute what part of the sales comes from advertising and what
part comes from WOM, it is widely accepted that WOM has a greater impact than any other
form of information. This is attributable to trust and familiarity of the parties with each other.
It could also explain why most consumers who are suffering from hair-loss and are aware of
the product are actually using it. But in order for this to hold, we should expect that positive
word of mouth is being generated and this happens due to a satisfactory experience with the
product.
In order to detect whether this was the case, the following questions were formed:
How do the following appeal to you about Bawang product?
A. Packaging
About 57.3 percent of Bawang users either
strongly dislike, or somewhat dislike the
packaging. The remaining 42.7 percent either
strongly dislike or slightly dislike it.
B. Price
When asked about the product’s price, 66.6 percent
of the users tend to either strongly dislike it, or
somewhat dislike it. About half that percentage
strongly like or somewhat like the price. There is
obviously a bias in this answer since every
consumer, being a price taker, is incentivised to
overstate his dissatisfaction.
However, according to our measurements, Bawang is indeed relatively expensive. In fact it
has the highest price per 100ml when compared against competing shampoo brands from
P&G and Unilever. It is at least 60 percent more expensive than Pantene which, as shown, is
preferred by most of the current and potential users.
SHAMPOO PRICE/100 ML BOTTLE PRICE BOTTLE VOLUME
Bawang 2.74 10.95 400
Head & Shoulders 2.49 9.95 400
Head & Shoulders 2.36 17.70 750
Sunsilk 1.91 6.70 350
Sunsilk 1.78 12.45 700
Clear 1.77 9.75 550
Pantene 1.69 12.70 750
Every shampoo which is more expensive than Bawang is only sold in pharmacies (Watsons
and Guardian) and the price increase from the price of Bawang becomes rapid (Exhibit E).
Moreover, Bawang is the only shampoo which had a steady price throughout the sampling
period. Competing products had adopted a very aggressive pricing policy, with promotional
offers and discounts of up to 50 percent. If users are not satisfied with the product’s
packaging and price, what is it that attracts them to the shampoo? The consumer’s opinion
about the following attributes was also asked in the survey:
C. Scent
Approximately 83 percent strongly, slightly or just
like the scent of the product, with only 17 percent
disliking it. Unlike detergent-based shampoos,
Bawang has a distinctively herbal scent, which is
associated with pureness, and oneness with nature.
D. Jackie Chan Image
According to the survey, the Jackie Chan Image as a user and
advertiser is another value adding factor to the Bawang
experience. Almost
83% of the users
strongly, somewhat, or simply like the
shampoo’s endorsement by Jackie Chan. Only
16.7 percent seem to slightly dislike it and there
were zero users expressing strong discontent.
E. Effectiveness
Lastly, a question with regards to Bawang’s
effectiveness was asked. Apart from the
intangible characteristics, the fitness for use is
vital for the consumer’s decision and loyalty.
According to our survey, 66.7 percent have a
strong liking for the product’s effectiveness. The
remaining 33.3 percent were somewhat satisfied. There were no responses in the negative.
E. Chinese Herbs
There was no consumer who said he was
dissatisfied with Bawang’s herbal qualities.
Bawang should take full advantage of this
perception as customers seem to value the
association of the product with Chinese.
Considering that the vast majority of shampoos are detergent-based, and Singaporeans do
seem to value Traditional Chinese Medicine, Bawang should use this characteristic as its
POD (Exhibit F for the group’s proposed ad highlighting the ingredients).
TCM in Singapore - In 2001, a study conducted by the World Health Organization (WHO)
found that in Singapore, Traditional Chinese Medicine (TCM) is the most prominent
traditional therapy, both in terms of the number of its practitioners and patients and in its far-
reaching appeal. About 45 percent of Singaporeans have consulted traditional medicine
providers. Singaporeans consider TCM relatively safe and less invasive compared with
Western medicine. As such, Singapore becomes an appealing market for a Chinese herbal
shampoo such as Bawang. Add the rising incidence of hair loss problems in Singapore, and
you get a very attractive market
Survey Conclusions
Based on the above responses, we can detect a plethora of product attributes that play their
own role in the choice of Bawang by customers. Although packaging is a marginally negative
factor and price is definitely a negative, the Jackie Chan image and effectiveness of Chinese
herbs seem to be the strong attributes binding the product and its users. In other words, the
survey shows that despite the product’s high price, customers feel they are getting high value
for money.
Moreover, based on the above responses and considering that Bawang has adopted a very
mild advertising policy in Singapore, its expansion and acceptance in the Singapore market
can be explained with the help of the following diagram:
Financial Analysis
Bawang has seen extraordinary growth over the last three years in China, with revenue
increasing from 392 million RMB in 2006 to 1.4 billion RMB in 2008, recording a
compounded annual growth rate of 89 percent during the period. The gross margins increased
from 57.55 percent in 2006 to 63.9 percent in 2008. However, the net profit margin decreased
from 29.55 percent in 2006 to 19.95 percent in 2008.
WordOf
Mouth Satisfied Bawang User
New Bawang User
Analyzing the reasons for growth
Bawang adopted an aggressive strategy in 2007 by hiring 6219 salespersons to increase brand
awareness. The strategy was successful and helped Bawang capture substantial market share.
Financial Strength
Bawang has had a successful IPO in Hong Kong in July 2009. The firm plans to use 18
percent of the IPO proceeds of USD$ 213 million to finance its overseas expansion into
Singapore, Taiwan, Malaysia and Thailand. Since Bawang entered Singapore with sole
distributorship, it has spent relatively little on advertising in the country as compared to
China. In terms of the use of 30 percent of proceeds on future marketing and promotion,
Bawang could allocate more funding to increase its marketing campaign in Singapore.
Advertising Expense
Bawang has been spending substantially on advertising for its global operations. The
advertising expense constituted around 14 percent of its revenue on average during the period
2006 to 2008.
Singapore Market Analysis
According to data from Euromonitor, the total Singapore shampoo market was SGD 45.9
million in 2008. The Bawang’s market share was around 2.6 percent on a pro rata basis
(Bawang was launched in Singapore in September 2008).
Per capita shampoo consumption
Singapore had a per capita shampoo consumption of 0.75 litres in 2007. If we suppose that
the per capita consumption in 2008 was also 0.75 liters, then based on population figures of
4.8 million in 2008, total consumption of shampoo comes out to be 4.8 * 0.75 = 3.6 million
litres.
The cost per litre of shampoo is 45.9/3.6= SGD 12.75
The cost of Bawang thus comes out above the industry average, but it is definitely below
other herbal products it is competing with.
Advertising Expense
The visibility and brand awareness of Bawang in Singapore are
quite low. One of the reasons for this is the limited advertising
campaign in Singapore. Unlike other markets where Bawang has
an advertising budget of around 14 percent of sales, in Singapore,
it is practically minuscule.
Bawang could adopt the marketing strategy it had adopted in China and hire more
salespersons and do more television advertising to increase brand awareness in Singapore.
Recommendations
In order to replicate the success of Chinese market in Singapore, Bawang needs to step up its
marketing endeavors to spread awareness of its products and increase its popularity amongst
Singaporean consumers.
Brand Awareness
Bawang’s immediate short term objective is to effectively market its products to increase
brand awareness. In Singapore, where people are from diverse ethnic backgrounds,
advertising can be tricky. But if delivered well, the advantage is that a product can become
appealing to a diverse group of people, increasing sales potential multifold. Bawang should
follow the ‘5 Ms of Marketing’ – the right mix of mission, money, media, message and
measurement – to increase brand awareness.
The Five Ms of Mass Media Campaign
For any product to be successful in a new market, advertising is crucial. Bawang should
consider the factors listed below before deciding on advertising, as illustrated below.
Mission
a. Short Term Mission - Create brand awareness and knowledge of the new product. In
China, Bawang is a widely known brand and people are aware of the herbs used in the
shampoo. However, in Singapore, it launched recently and hence is relatively unknown.
Moreover, people are not as well acquainted with the benefits of Chinese herbs. So in order to
persuade consumers to buy this product, Bawang should make them aware of it, its benefits
and its effectiveness.
b. Intermediate Mission - Once the consumer is made aware of the product, advertisements
should aim to create liking and preference for the product, and conviction among consumers
to purchase it. It can do this by conveying to consumers that Bawang reduces hair loss,
darkens hair, repairs and nourishes weak hair and fights dandruff.
c. Long Term Mission - Once the consumer are aware of the brand and willing to buy,
advertising should aim to stimulate repeat purchase of the product. It should then use
straightforward messages that emphasize the brand’s key benefits, and repeat the advertising
a number of times over the course of the day.
Money
Bawang is in its infancy in Singapore. Therefore, it should
carefully allocate its advertising budget. It should consider
following factors before deciding on the budget:
A. It is a new product in Singapore market, and therefore, a large advertising budget is
necessary to build brand awareness and encourage consumers to try the product. Once
the brand becomes established, then the budget can be commensurately reduced.
B. It should also consider competition before deciding on the advertising budget. To gain
a foothold in a market already saturated with different brands of shampoo, Bawang
will again require a larger budget.
Message
As users are exposed to innumerable shampoo advertisements, it is important for Bawang to
generate a fresh message that creates an immediate and lasting effect in consumer minds.
Bawang’s message should be unique and be able to break through the clutter. That it
highlights its distinct feature of being produced from Chinese herbs is paramount. Their
effectiveness can be conveyed through some success stories from China. Often, a message
receives more visibility depending on the person delivering it. Celebrity endorsement of the
product can go a long way in establishing the brand’s credibility among consumers. Also, we
advertising should be gender neutral to increase the product’s appeal among both males and
females. Since shampoo product is not seasonal and is sold through the year, advertising
should not happen in bursts, but should be all the year round.
Media
There are various advertising options that Bawang can consider.
Billboards – Billboards is an effective mode of advertising. Placement of a billboard is
important for its visibility. It should target locations of heavy traffic, crucial intersections in
Singapore and arterial highways that reach Singaporeans from their home to office.
Billboards should also be capable of producing digitally enhanced graphics and backlighting.
Television – This will be the most effective advertising medium as it can effectively
demonstrate product attributes and persuasively explain consumer benefits. There is no
argument that brand image, personality e and other brand intangibles can be best portrayed
through moving images. The target market being middle-aged men and women, who are at
work most of the day, television advertising should ideally be aired in evening prime time
slots so that there is maximum impact.
Print Ads – With the target market for Bawang being middle-aged men and women, who are
in the habit of picking up a newspaper or flipping through a magazine, Bawang should fully
exploit this medium.
Internet – In this digital era, in which most Singaporeans have access to the internet and
spend a considerable amount of time online, Bawang should be advertised through this
medium. Publishing ads through Google’s AdWords, a service that sorts consumer
preferences by tracking online consumer behavior and targeting them with relevant ads when
they come online, and posting targeted specific groups on social networking websites like
Facebook and Orkut can be effective means of advertising.
Measurement
Through consumer surveys, Bawang can track the awareness and buzz, if any, that
advertising has generated. Bawang may also consider measuring advertising’s sales effect.
Measuring Sales Impact of Advertising
Sales and Promotions
Bawang products are available on store shelves of all major retailers in Singapore. But the
product in no way seems to stand out from the multitude of other products available for hair
care. Being a new entrant to Singapore and a less known brand, it needs to attain optimal
visibility on store shelves. The following specific strategies must be implemented in
Singapore for this:
Special Zones: Many retail stores have special zones dedicated for new and niche products.
These are typically special interest products or items with ongoing promotional offers.
Bawang should persuade retailers to place its products in these areas to gain visibility.
Product Promotional Zones: In China, Bawang has created special zones in retail stores by
acquiring an area of the shop floor exclusively to showcase Bawang products and
promotions. These areas serve as in-store marketing platforms for Bawang. Such a
Share of Expenditures
Share of Voice
Share of mind and heart
Share of market
promotional strategy, if adopted in high-footfall retail stores and malls in Singapore, can be
extremely effective.
Retail Monitors: In China, Bawang also gets into special agreements with retailers to
employ personnel dedicated to monitoring sales and promoting Bawang within the stores.
Bawang, through its distributor Hannah, should implement the same strategy in Singapore.
Additionally, Bawang can also employ the following strategies to garner a share of the
Singapore customer’s heart and mind.
Herbal and medicinal product areas: While Bawang is essentially a shampoo brand, it can
also be placed alongside herbal and medicinal products in retail stores.
Distribution of samples: One surefire method of increasing brand awareness is to allow
consumers to try the product before purchasing it. Bawang could distribute small sample
sachets of its products complementary, along with, say, newspapers or magazines on
healthcare/fashion.
Public Relations and Publicity
Celebrity endorsements: Bawang has chosen action star Jackie Chan as its brand
ambassador. While the actor has tremendous appeal in Asia, Bawang can enhance its image
by having local Singaporean celebrities, both male and female, endorse the brand. Bawang
may also seek endorsement from international celebrities to appeal to the demographic mix of
Singapore.
Other endorsements: Bawang should additionally look to obtain endorsements from
healthcare treatment centers and health spas. Such endorsements will reinforce Bawang’s
image as a highly recommended hair care product.
Testimonials: The company should regularly collect and publish testimonials from satisfied
customers through appropriate media channels as well as through its website.
Events and Experiences
Bawang can sponsor events like beauty pageants, social events, parties and ‘green’ events. By
becoming part of a special and more personally relevant moment in consumers’ lives,
Bawang can broaden its target market.
Beauty Pageant – By sponsoring beauty pageants, Bawang can increase brand awareness
through sustained, yet not in-the-face self-promotion. Since beauty pageants are related to
beauty and good looks, and usually attended by youngsters, Bawang can use this as a
platform to widen its target base from middle-aged men and women to youngsters.
Social events and parties – Bawang can also sponsor social events and parties to enhance its
corporate image. Elite events that will lend the brand more prestige and credibility could
again be a source of targeting potential users for Bawang.
‘Green’ events – Being an herbal product, Bawang should support environmental causes and
sponsor events related to going green. Cause-related marketing and tie-ups with non-profit
organizations and charities can further improve perception about Bawang.
Direct Marketing
Ordering Online: Market de-massification has resulted in an ever-increasing number of
market niches. Consumers, short of time and tired of traffic and parking headaches appreciate
buying products online or over the phone. The growth of the internet, email and mobile
phones has increased direct marketing avenues. Moreover, the increased use of credit cards
makes direct marketing easier. Bawang can use this opportunity and market its products
through telemarketing, catalogues and online marketing.
Telemarketing: Bawang can use call centers to attract prospective
clients and service the needs of existing ones. This can help Bawang
increase revenue, reduce selling costs and improve customer
satisfaction.
Online Marketing: This will be the most cost-effective form of
marketing. To achieve its communication and sales objectives, as a first step, Bawang should
focus on improving the ease of use and physical attractiveness of its website. The site should
also be quickly downloadable.
Packaging
On analyzing Bawang’s current packaging, the following observations are evident:
A. Bawang’s current packaging gives it a masculine look. Since the product is suited for
use by both genders, it should be repackaged to suit females. Moreover, in an average
Asian household, the woman is the primary buyer of household products including
toiletries. Hence, even a male product needs to be gender neutral for it to be picked
up.
B. The color of Bawang’s packaging is dark green or black, in sync with its herbal
features, but totally out of sync with the urban and trendy outlook of the modern-day
Singaporean.
Controls
After implementing the proposed strategy, Bawang must monitor the outcome of the strategy.
It can be done in two ways:
1. Internal Information
Bawang must not only analyze direct sales data with regards to retailers, but also with
regards to the different variants of the Bawang shampoo. The effect on revenues after
the implementation of the strategies would help Bawang gauge the effectiveness of its
strategies.
2. External Information
Bawang can use several ways to get feedback from the customers, such as:
Set up a forum – People suffering from various hair problems including hair loss,
dandruff and itchy scalp could share their problems and make recommendations to
Bawang. Based on information gathered from this forum, Bawang can get a more
comprehensive understanding of its customer preferences.
Collaborate with external parties
In addition, it will be useful to get important information from external parties
such as distributors, wholesalers and retailers regarding sales trends and sales
figures to evaluate the effectiveness of the strategies.Commission marketing
research
Bawang could also engage marketing firms to survey the effectiveness of
employed strategies, developing marketing trends and thus discover how well do
people identify with the Bawang brand.
Exhibit A
Bawang Corporate Structure
Exhibit B
Age of Respondents
Gender of Respondents
Do you have hair loss?
Main Cause for Hair Loss
Can hair loss be cured 100 percent?
Do you believe hair loss will affect your social life/career?
How will hair loss affect you most?
Would you be willing to trade a personal possession for more hair?
If yes, what item?
Exhibit C
Sales of Medicated Skin Care by Subsector: percent Value Growth 2003-2008
percent current value growth 2007/082003-08 CAGR
2003/08 TOTAL
Medicated skin care 2.8 2.3 12.0 Hair loss treatments 6.0 6.5 37.0 Topical antifungals 4.5 4.5 24.6 Vaginal antifungals 2.5 2.2 11.7
Medicated shampoos 2.5 3.7 19.8 Acne treatments 3.5 2.2 11.7
Antipruritics 3.0 3.6 19.3 Topical germicidals/antiseptics 1.5 1.0 4.8
Topical allergy remedies/antihistamines - - - Antiparasitics/lice (head and body)
treatments 2.5 2.3 11.8
Lip care treatments 3.5 3.0 15.9 Emollients/therapeutic moisturisers 4.0 2.4 12.6
Haemorrhoid treatments 2.0 1.4 7.2 Child-specific medicated skin care 1.5 1.8 9.1
Nappy (diaper) rash treatments 3.5 1.9 10.1
Source: Official statistics, Trade associations, Trade press, Company research, Store checks, Trade interviews, Euromonitor International estimates
Exhibit D
Hair Care Company Shares by Retail Value 2004-2008
percent retail value rsp 2004 2005 2006 2007 2008 L'Oréal (S) Pte Ltd 19.4 19.2 19.8 20.9 21.6Unilever Singapore Pte Ltd 14.7 16.1 17.8 17.9 17Procter & Gamble (S) Pte Ltd 20.7 20.1 18.7 16.9 15.9Mandom Corp (S) Pte Ltd 3.7 6 6.3 6.6 6.7Kao (S) Pte Ltd 2.5 2 2.6 4.4 5.6Hoyu Singapore Pte Ltd - - 2.9 3 3.2Revlon Inc 1.4 1.7 2.1 2.3 2.2Body Shop (S) Pte Ltd, The 2.6 2.1 2.1 1.9 2Henkel KGaA 2 1.8 1.8 1.6 1.4Nu Skin Enterprises Singapore Pte Ltd 1 0.9 0.6 0.8 0.8Tohtonku (S) Pte Ltd 1 0.9 0.7 0.7 0.7Way Co Pte Ltd 0.7 0.6 0.6 0.6 0.6Colgate-Palmolive Eastern Pte Ltd 0.4 0.4 0.4 0.7 0.6Amway (S) Pte Ltd 0.3 0.3 0.3 0.4 0.5Sara Lee Singapore Pte Ltd 0.7 0.7 0.6 0.5 0.4Kosé Singapore Pte Ltd 0.2 0.2 0.2 0.2 0.2Johnson & Johnson Pte Ltd 0.3 0.2 0.1 0.1 0.1Shiseido (S) Co Pte Ltd 0.6 0.1 0.1 0.1 0.1Combe Inc 0.1 0.1 0.1 0.1 0.1Lion Corp (S) Pte Ltd - 0.2 0.3 0.3 - Reckitt Benckiser (S) Pte Ltd 0.5 0.5 0.4 - - Hoyu Co Ltd 3.4 3 - - - Wella AG - - - - - Clarins Pte Ltd - - - - - Private Label 1.1 1 0.9 0.9 1Others 22.6 22 20.5 19.2 19.5Total 100 100 100 100 100
Source: Trade associations, trade press, company research, trade interviews, Euromonitor International estimates
Exhibit E
Retail prices of competing anti-hair loss shampoos
BRAND Price/100ml PRICE VOL
Rene Furterer 24.67 37.00 150
Foltene 19.00 38.00 200
Ducray Anaphase 18.60 27.90 150
Phyto thinning hair 16.00 32.00 200
Vichy Dercos 9.50 19.00 200
Grorich hair follicles 9.33 28.00 300
Shokaigan Intensive Treatment Shampoo 8.56 59.90 700
Pregaine 8.48 16.95 200
Pregaine for frequent use 8.48 16.95 200
Pregaine 7.20 28.80 400
Pregaine for frequent use 6.38 25.50 400
Dove Therapy 2.91 10.90 375
BA WANG 2.75 11.00 400
Head and Shoulders 2.49 9.95 400
Head and Shoulders 2.36 17.70 750
Sunsilk Hairfall Solution 1.91 6.70 350
Sunsilk Hairfall Solution 1.78 12.45 700
Clear 1.77 9.75 550
Pantene pro V hair fall control 1.69 12.70 750
Source: Watsons, Guardian and Cold Storage
Exhibit F
Group’s Proposed Advertisement highlighting the Herbal Ingredients
Appendix A
----- Forwarded Message ---- From: Peter Lee Shun Ta <[email protected]> To: [email protected] Sent: Tuesday, September 22, 2009 7:01:18 Subject: Regarding Bawang Brand Research (NUS MBA)
Dear Ms. Wong,
Greetings!
My name is Peter Lee and I am writing to you on the behalf of myself as well as several of my fellow MBA students at the National University of Singapore (NUS) who are currently conducting a research study on the hair shampoo brand, Bawang as part of our Marketing project.
We have chosen to do a study on Bawang because we are interested in exploring its growth potential here in Singapore. Based on our preliminary research, we have noted that Bawang is the fourth largest hair care player in China yet it is relatively new in Singapore.
As your company is the sole distributor of Bawang in Singapore, we would like to schedule a meeting with you or a representative from your firm to discuss more about the brand and how our study can help provide relevant research data and insights to your company with regard to the said brand.
We sincerely hope that you will accommodate our request and we look forward to your reply. For confirmation and/or further queries/concerns, your office may contact me or my colleague Roland Lim at telephone nos. 9101-6977 or 9083-4523.
Thank you.
Sincerely,
Peter S. Lee
MBA 2011 Real Estate
Bibliography
June 2009 prospectus document of Bawang International (Group) Holding Limited
Overview of Singapore Hair Care Market (Datamonitor September 2009)
Porda International (Finance) PR Co. Ltd marketing document, “Bawang Group Announces Proposed Listing on the Main Board of the HKEx”
Official statistics, trade associations, trade press, company research, store checks, trade interviews from which Euromonitor International gathered information
Marketing Management: An Asian Perspective (Fifth Edition) Philip Kotler, Kevin Lane Keller, Swee Hong Ang, Siew Meng Leong, Chin Tion Tan
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