INCREASE IN EXTERNAL FACTORS FOR BRAND STRENGTH

 

Since the new campaign aims to achieve and bring SK-II to the next level, certain aspects of the brand strength will be increased.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

By launching the campaign, we aim to improve the differentiation, consistency, presence and also the understanding of SK-II by the new score seen in the table above.

 

DIFFERENTIATION

Since SK-II will be focusing more on educating users that they should start taking care and acting like a mentor, we will shift away from the traditional image of a profit driven company and more of a skin care firm that truly has your interests at heart.

 

CONSISTENCY

The consistency aspect will also improve slightly as we try to broaden the market share and more people will come into contact with SK-II. Internally, the product is still unchanged. However, from an external point of view, more people will view and experience SK-II with their ever-consistent image.

 

PRESENCE

Since the campaign targets a viral marketing approach, we expect SK-II to be discussed about more often. Furthermore, we are trying to change the traditional perspective of anti-aging and inculcate the knowledge into the ladies that the effects of aging are irreversible and they should start taking care as early as possible.

 

UNDERSTANDING

Lastly, by launching the pop-up store, SK-II’s brand heritage and knowledge of their products and point-of-differences will be better highlighted to all consumers. Furthermore, the campaign will also broaden the currently narrow breadth of brand salience by reminding everyone how appropriate SK-II can be applied in different situations.

 

INCREASE IN GROWTH RATE OF NOPAT

The whole campaign aims to target more of the new market segment as well as strengthen the bond amongst the current users. As such, we expect the growth rate of the Missus and Gentlemen segment to increase by 1% to 2% and 6% respectively.

 

NEW BRAND VALUE

Since we target to improve SK-II’s brand and to bring them one step ahead of their competitors, we have calculated the new brand value to be approximately S$27 million as compared to the previous S$26.5 million. Although the increment in the brand value is only S$500,000, we are adopting a more conservative approach by being prudence on the growth rate of the 2 segments. Moreover, being an established and strong brand, the growth rate of the brand value will not experience exponential growth as seen in newer and developing brands.

 

CAMPAIGN BUDGETING

With the new campaign in mind, we have to be mindful about the costs and the returns. Being constrained by our knowledge of the industry and the data available, assumptions were made on certain aspect of the cost of the campaign. The table below thus provide a summary of the cost.