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.
804-502-5247 imchailin@gmail.com LINCHAI.COM
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 ‐
Experience Account 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
I am a creative brand manager.
A creative brand manager is a pure blend of creativity and business smarts.
s n o i t a g i t s ve n I
Understanding a brand’s spirit
Discovering the real problem
Identifying the relevant target market
Ebony A Brand Culture Analysis
Sun Crystals A Brand Positioning
Netflix A Segmentation Study
s n io
t u l
So
Reaching new customers
Developing marketing initiatives
Williams-Sonoma An Integrated Campaign
Swift Runner Sport A Case Study
Launching in a new market Hamilton Beach Brand Launching in China
its position in culture
January 2009
A Brand Culture Analysis
Challenge Analysis of brand equity through examining
Owned by Johnson Publishing Company, the world’s largest 100 percent Black-owned publishing company
For Both Genders 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.
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.
-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
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 Connections Nostalgic, 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.
”
Respectable
Inspira(onal
Self-esteem Faithful
Elderly
The Root: The 40 million Black population
A Brand Culture Analysis
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.
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?
October 2010 Team - CS:Bowles
A Brand Repositioning
Challenge Help Sun Crystals break into the sweetener industry
What Are Sun Crystals
+
Marketed by McNeil Nutritionals, LLC, a Johnson & Johnson company. This global marketer of innovative nutritional products also owns Splenda sweetener products.
=
Stevia
Sugar Cane
Natural and noncaloric sweetener
All-natural sweetener
Sun Crystals brings them Product Benefits Emotional Benefits together for the first all natural | 5 calories | same texture as sugar taste without guilt time to create a 100% healthier than sugar | tastier than stevia natural sweetener
Industry
The Competition Look-alike brands
Market Share ($)
Sugar (7 bill)
Artificial Sweeteners (680 mill)
Natural Sugar Substitutes (232 mill)
Since it’s FDA approval in 2008, the market has been flooded with stevia brands trying to stake their claim on the same thing.
Trend Sugar
Brand Background
1960’s
1999
2009
Artificial sweeteners Splenda Go natural (diabetes/obesity) (Atkins/South Beach) (health/ organic craze)
What they are saying
All Natural / Pure Healthy, “Guilt fee” Taste great Diabetic friendly
How are they saying it
Green Plants Simple / Clean Recipe suggestions
“
”
Problem Product Identity Crisis
The New Positioning The better way to have your sugar 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 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.
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.
Challenge Break away from the Stevia “sea of green”
Solution
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.
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 Repositioning
But we’re not really saying anything different.
that offers the most business potential
April 2010 Team - CS:Liddiard | CS:Martin | CS:Clurman
A Segmentation Study
Challenge Identify and reach a customer segment
Segmentation Study OBJECTIVE
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.
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
Brick-and-Mortar Store Blockbuster Redbox Hollywood Local stores
CONSUMER INSIGHTS C H ALL E N G E S CONSUMER SEGMENTS
Today, movie lovers have a myriad of op2ons for consuming their movies.
Direct Access Pay-per-view VOD Apple TV
g Online Streamin iTunes Movielink Hulu
DVD Purchase Mail
Movie T h e at r e
Blockbuster
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.
Four segments emerged, differentiated on the advice that consumers used to decide which movies to watch. The critics loved it Refer to critic reviews and Cannes festival nominations
Why not Don’t really think about what to watch
Heard it’s good Rely on friends' recommendations
It’s got buzz Catch the latest box office hits
Why Not Movies per month
It’s Got Buzz
6+ More likely to watch it on TV channel
Heard It’s Good
The Critics Loved it
3-6
6+
Attitudes
“ I prefer to wait awhile to see if my friends like it.”
“ Movies are often my background.”
“ If my friends want to see a movie, I am in.”
Planning makes entertainment an obligation.
Bad movie Pizza, popcorn, friends, it’s a movie would screw up an evening night!
Segment Select
Heard It’s Good They 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.
“ I am very picky about the movies I watch. I would be a film critic.”
Checking movie reviews is my ritual
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.
COMMUNICATION STRATEGY
We get the difference between the best movie and the best movie for you.
A Segmentation Study
Hit the theater More likely to plan Spend more time on more often movie researches ahead “ Lying on my couch and “ I saw Twilight Saga “ I plan my leisure “ I am proud to be the watching anything as soon as go-to person for time to get mindlessly is a best way Movie it came out ” recommendations” the most from it ” to relax.” Habits More open to try a new movie Less open to try a new movie
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.
April 2011 Team - CT:Hankins | CW:Karczewski | CS:Martin | AD:Su
Reaching new customers
Challenge Make an aging brand relevant to younger audience
Founded in 1956, Williams-Sonoma is the premier specialty retailer of gourmet cookware in the United States.
PROJECT
Create an integrated brand campaign to connect younger customers to the Williams-Sonoma brand “We cook to create a feeling. People come together around food.” 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. - 40-65 years old - $100K+ HHI - Homeowners - Cook on a regular basis
“ Cooking is a big part of creating a home.”
Our Target
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. - 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.
‐
OBJECTIVE Convert more Dreamy Novices into Seasoned Cooks.
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.
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
OPPORTUNITY Create a digital experience that is tailored towards the Dreamy Novices 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.
Reaching new customers
ISSUE Although they’re motivated to learn how to cook, they don’t know where to start.
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.
➋ ➌
Many new cooks have trouble identifying the correct ingredients needed for recipes. To solve that problem this screen has written and visual ingredient lists. 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 split window with independently sliding top and bottom screens. These separate screens allow multiple cooks to view a recipe at their own pace, in order so that they can work together easily.
Reaching new customers
➊
BRING THE EXPERIENCE TO THE GROCERY SHOPPING
Reaching new customers
IN STORES
ď ƒ
COMMUNICATION
ď ƒ
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.
Reaching new customers
From a product supplier to a service and support provider. ROI
$200,000 investment including the design and cost of programming 5% increase in wedding registries per year 5% x 200 registries/store x 259 stores= 2,590 sales increases in wedding registries 2,590 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
Return on investment: $11,502,190 $10,360,000 + $1,142,190 = $11,502,190
Challenge Create a marketing strategy based on a sound financial analysis
March 2011 CBM Team - Rue|Welch|Powlesson
Financial Justification
Swi; Runner Sports Case Study
The Assignment Create a complete brand strategy recommendation for the online running retailer, Swift Runner Sports (SRS).
The Direction
Focus on the existing customers - ‘The Avid Runners.’
Defend SRS’s stake in the avid runner segment. 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.
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.
The Strategy Focus on customer relationships on a hyper-personal level
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
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.
Positioning The online local running store
convenient
tailored
credible
The driving insights Running is universal, but the experience is personal.
independent
Support
Loyalty
Site Customization
Rewards
Event Presence
Guru
Profile
365 Swiftrunner Traffic
Pre | Post Consultations
Engagement
Social Sharing
Acquisition
★ 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 Invite The Profile
The existing customers will receive an invitation to join the Swiftrunners’ club. Their membership will start after they create their profile.
Financial Justification
Strategic Platform
Strategic Platform Support
Loyalty
Site Customization
Rewards
Event Presence
Guru
Profile
365 Swiftrunner Traffic
Pre | Post Consultations
Engagement
Social Sharing
Acquisition
★ 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 Invite The Profile
The existing customers will receive an invitation to join the Swiftrunners’ club. Their membership will start after they create their profile.
Financial Justification
Swi-runners’ club
The New Online Experience
The landing page Visitors can choose to connect to their Facebook or just use their zip code to make the site geographically and seasonally relevant.
Custom Site 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.
The Guru Support Consumers who participate in the Swiftrunners’ club have access to the personal consultancy service from our regionally based gurus.
The New Online Experience
The landing page Visitors can choose to connect to their Facebook or just use their zip code to make the site geographically and seasonally relevant.
Custom Site 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.
The Guru Support Consumers who participate in the Swiftrunners’ club have access to the personal consultancy service from our regionally based gurus.
11,000
The New Online Experience
The landing page Visitors can choose to connect to their Facebook or just use their zip code to make the site geographically and seasonally relevant.
Custom Site 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.
The Guru Support Consumers who participate in the Swiftrunners’ club have access to the personal consultancy service from our regionally based gurus.
11,000
The Rewards 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.
Financial Justification
★ 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 +
The Rewards
500
★ 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 +
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.
Financial Justification
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
Keep Running
Customer Lifetime Analysis I. II. III. IV.
1/yr | dormancy rate: 61% | Avg. order: $63.09 | Useful life (UL): 4 years 2/yr | dormancy rate: 41% | Avg. order: $62.90 | UL: 6-7 years 3/yr | dormancy rate: 29% | Avg. order: $58.76 | UL: 9-10 years 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 follows 1/yr | 1 : 1 2/yr | 2.9 : 1 3/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 in incremental sales every 6 months, or $6.9MM per year. • Need a little under 11% of customers to participate to recuperate $3 MM investment in marketing (with incremental sales).
- Secondary research: Brand Audit and Existing Consumer Research Study, IBISWorld Industry Report, and Chinese Market information - Primary research: Online Survey, One-on-one Interviews, Competitive Analysis, Target Audience Segmentation Study, Cookalongs, In-store Shopper Observation, and Shop-alongs
Dec. 2010 - Apr. 2011 Independent Study
Launching in a New Market
Challenge Launch Hamilton Beach Brand in China Research methodology
WHY CHINA THE STAGNANT U.S. SMALL KITCHEN APPLIANCE MARKET Total U.S. sales of small kitchen appliances, at inflation-adjusted prices, 2005-2010 ($ million)
THE BLOSSOMING CHINESE MARKET
•One of the largest yet least penetrated small appliance consumer market in the world
2,500
• $12.4 Billion market size in 2008 with 23% growth rate
2,000 1,500 1,000 500 0
2005
2006
2007
2008
2009
2010
The declining profit margin THE BURGEONING CHINESE MIDDLE CLASS
• High disposable income • Changed consumer attitude
THE CULTURAL BACKGROUND China is a country where appreciation of food has been developed to the highest level.
A Chinese way to greet each other
“HAVE YOU EATEN YET ?”
WHY CHINA THE STAGNANT U.S. SMALL KITCHEN APPLIANCE MARKET Total U.S. sales of small kitchen appliances, at inflation-adjusted prices, 2005-2010 ($ million)
THE BLOSSOMING CHINESE MARKET
•One of the largest yet least penetrated small appliance consumer market in the world
2,500
• $12.4 Billion market size in 2008 with 23% growth rate
2,000 1,500 1,000
US market
500 0
Chinese Market
2005
2006
2007
2008
2009
2010
The declining profit margin THE BURGEONING CHINESE MIDDLE CLASS
• High disposable income • Changed consumer attitude
THE CULTURAL BACKGROUND China is a country where appreciation of food has been developed to the highest level.
A Chinese way to greet each other
“HAVE YOU EATEN YET ?”
ESTABLISH THE BRAND NAME BY OWNING ONE CATEGORY
THE FOUR MOST POPULAR SKAS IN CHINA
The top four players in the SKAS market in China established their names by owning one category then expanding to others
The ownership in percentage
93.3
RICE COOKER
79.8 62.5
SOY MILK MAKE
51.9
MICROWAVE Rice Cooker
Soy Milk Maker
Mircowave
Electrical Pressure Cooker
ELECTRICAL PRESSURE COOKER
What is next ? FOOD PREPARATION SEGMENT 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
PREPARING A TYPICAL CHINESE MEAL
“It takes time, and needs great effort, patience, and skill.”
Launching in a New Market
THE APPROACH
ESTABLISH THE BRAND NAME BY OWNING ONE CATEGORY
THE FOUR MOST POPULAR SKAS IN CHINA
The top four players in the SKAS market in China established their names by owning one category then expanding to others
The ownership in percentage
93.3
RICE COOKER
79.8 62.5
SOY MILK MAKE
51.9
MICROWAVE Rice Cooker
Soy Milk Maker
Mircowave
Electrical Pressure Cooker
ELECTRICAL PRESSURE COOKER
What is next ? FOOD PREPARATION SEGMENT 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
PREPARING A TYPICAL CHINESE MEAL
“It takes time, and needs great effort, patience, and skill.”
Launching in a New Market
THE APPROACH
ESTABLISH THE BRAND NAME BY OWNING ONE CATEGORY
THE FOUR MOST POPULAR SKAS IN CHINA
The top four players in the SKAS market in China established their names by owning one category then expanding to others
The ownership in percentage
93.3
RICE COOKER
79.8 62.5
SOY MILK MAKE
51.9
MICROWAVE Rice Cooker
Soy Milk Maker
Mircowave
Electrical Pressure Cooker
ELECTRICAL PRESSURE COOKER
What is next ? FOOD PREPARATION SEGMENT 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
PREPARING A TYPICAL CHINESE MEAL
“It takes time, and needs great effort, patience, and skill.”
Launching in a New Market
THE APPROACH
ESTABLISH THE BRAND NAME BY OWNING ONE CATEGORY
THE FOUR MOST POPULAR SKAS IN CHINA
The top four players in the SKAS market in China established their names by owning one category then expanding to others
The ownership in percentage
93.3
RICE COOKER
79.8 62.5
SOY MILK MAKE
51.9
MICROWAVE Rice Cooker
Soy Milk Maker
Mircowave
Electrical Pressure Cooker
ELECTRICAL PRESSURE COOKER
What is next ? FOOD PREPARATION SEGMENT 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
PREPARING A TYPICAL CHINESE MEAL
“It takes time, and needs great effort, patience, and skill.” 1 - 1.5 hour
Launching in a New Market
THE APPROACH
OPPORTUNITY Introducing Hamilton Beach food processors to Chinese consumers. Improving upon the old ways to prepare food.
THE COOKING SEGMENTS
TARGET 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”
THE FAMILY CHEF
What is important to them when cooking - “Nutritious, gourmet meals that I can be proud of and my family will enjoy” - “Fresh ingredients are an essential part of a healthy meal” - “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”
Launching in a New Market
TARGET
BRANDING THE POSITIONING STRATEGY The easy to use and efficient appliance that takes the time out of food preparation, so that you are prepared for your family.
BRAND GUIDELINES Approachable, Show the Possibilities, Participation and High Involvement
NAMING The 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
EMOTION
RELEVANT
EASE
BRANDING PACKAGE REDESIGN Guidelines Easy to store Shield from dust Effective use of limited countertop space
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.
PRICE STRATEGY slide out when use
The price consumers are willing to pay on food preparation devices Core Value 짜499 = $73
Entry Value 짜329 = $48
Launching in a New Market
Promote daily usages
DISTRIBUTION RETAIL STRATEGY Driving insight: “Speak to me like you appreciate my role in the family and want to help” Invite the “family chef” to experience the easy and skillful way to prepare their family’s favorite food
IN-STORE IN-STORE RETAIL TACTICS
Shelf tags
Product demonstrations
Trade Shows
ONLINE ONLINE TACTICS - Direct mail - Cooking show - Informercials - Search Engine - Cooking blogs
BUDGET 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.
Launching in a New Market
ROLL OUT PLAN
Find me on
804-502-5247 imchailin@gmail.com LINCHAI.COM