SILKA GLIDE

Hair Removing Lotion

MKA

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PRODUCT DEVELOPMENT PLAN: SILKA

Hair Removing Lotion | Athena Marie Espinosa Kamille Guerrero Kristoffer Mercado Francis De Guzman Carlo Mejia Von Ryan Masangcay

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I. Executive Summary

Hair Removing Lotion

Cosmetique Asia was established in 2001, guided by its founder Mr. Alexander Co, who has over 35 years of experience in cosmetic retailing. With the introduction of its flagship brand, Silka Papaya, the company decided to venture into the growing cosmetic industry in the Philippines. After a good market acceptance of the Silka Papaya product line, Cosmetique Asia launched Juicy Cologne, the companys first foray in the perfume industry. Cosmetique Asia is continuosly growing and adding variety of cosmetic products to meet consumer needs. Silka Glide is a product development plan for Silka product line under its manufacturer Cosmetique Asia. As the name implies, Silka Glide is a hair removing lotion that will offer its customers a satisfactory smooth experience. Based on research, skincare industry is a king! A lot of Filipino consumer are in continuing romance with all things whitening that continued to drive sales for skincare and promises to continue doing so with a forecasted growth of 17% over the next 3 years. Even more astonishing is the fact that skincare category overtook sales of hair care products. So, we have come up to a new developed product for Silka which is SILKA GLIDE. A product that offers customer two purposes: a lotion and a hair remover. Silka Glide highest priority is the need of their customer. We have found out that many customer especially the female market is having a hard time dealing in whitening their skin and getting rid of unwanted hair in their bodies. With Silka Glide, we will offer customer convenience through our product unique benefits. Silka Glide will be targeting females and the GLBT market; those are the teens, married woman, young working professionals who are struggling to whitens their skin and remove unwanted hair in their bodies. Our primary competitors are Jergens, Avon products and Nivea who are major players in the skincare and whitening lotion category. Currently, Nivea is offering skincare products for men, which is why among the three, Nivea will be Silka Glide major rival in skin care competitive environment. Silka Glide has a very strong position in the niche market because of its product features that includes whitening effect, softening relief, enriched with Vitamin E, papaya extract, dermatologist tested, hypoallergenic and hair remover. Its price will range from 100 300 pesos depending on its volume (ml). 2

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Hair Removing Lotion

Silka Glide will sold and delivered its product targeting at 100% placement in all the possible channels of distribution, starting from Key Accounts, Supermarkets, Groceries, Department Stores, Convenient Stores, Drugstores, Chain Stores, Sari-Sari Stores, Public Markets, and the likes. We will inform target audience about the new Silka Glide Hair Removing Lotion, its benefits and its competitive advantage through advertisement, sales promotion, internet promotions and events. With all this programs, we expect to generate a 12% increase in sales that will give the company an increase of about 868 million sales/profit for Silka Glide for the year 2013.

II.

Situational Analysis

A. Category/ Competitor Definition Silka Glide and all its competitor is specializing in skincare products under cosmetic industry. About the Company Company or Brand Mission/Vision KAO brands Company Jergens Avon Products,Inc Skin so Soft Moisture Theraphy We will build a unique portfolio of Beauty and related brands, striving to surpass our competitors in quality, innovation and value, and elevating our image to become the Beauty company most women turn to worldwide. Beiersdorf Company Nivea Cosmetique Asia Silka

Mission

Kao Brands' corporate Mission Statement expresses our company's vision

We at Beiersdorf understand our consumers and delight them with innovative products for their skin and beauty care needs.

Cosmetique Asia will be the leading manufacturer and retailer of top-quality cosmetic products for the Filipino consumers and the Asian region

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To be the company that best understands and satisfies the product, service and self-fulfillment needs of women globally. Beiersdorf Cosmed Division Nivea Dr. Oscar Tropowitz.

Hair Removing Lotion

Vision

To transform women's lives through beauty.

Make our skin care brands to be the most purchased by consumers

Cosmetique Asia will be the leading manufacturer and retailer of top-quality cosmetic products for the Filipino consumers and the Asian region

Brand Founder KAO brands Company Jergens Andrew Jergens Sr. Charles H. Geifus Avon Skin so Soft Moisture Therapy David H. McConnell Cosmetique Asia Silka Alexander S. Co

Management Team of Company or Brand Avon Beiersdorf KAO brands Skin so Soft Cosmed Company Moisture Division Jergens Therapy Nivea Thomas B. Bill Gentner Andrea Jung Quaas Chairman and President and Chairman of Chief Chief Executive the Executive Executive Officer Board Officer B. Category Analysis
Factors Aggregate Market Category size Analysis

Cosmetique Asia Silka Alexander S. Co President and Chief Executive Officer

Assessment Market Attractiveness (+,-, 0) +

Category growth

Skin care industry is king! Even more astonishing is the fact that in 2008, the skin care category overtook sales of hair care products for the first time, registering a 27% share of the market. http://www.personalcaremagazine.com/Story.as px?Story=6052 The markets continuing romance with all things

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whitening continued to drive sales for skincare, and promises to continue doing so with a forecasted growth of 17% over the next three years. Skin care is set to increase in constant value at a CAGR of 5% over the forecast period, increasing to Ps36.9 billion in constant value by 2015. http://www.euromonitor.com/skin-care-in-thephilippines/report Silka skincare products are in maturity stage that focuses on creating brand extensions to boost sales. A new product development which is combining Silka lotion with hair wax is needed. Skin care industry is subject to general business condition due to impact of the economic crisis opened up new opportunities for domestic manufacturers offering more affordable products. That will be the time where consumer became more prices sensitive. This particular product is not subject to season. Skincare sales grew 2% in 2010 to reach $10.1 billion. No threat of new entrants. In industries that are capital or research or advertising intensive, efficiency requires largescale operation. The main source of scale economies is new product development costs. Thus, developing and launching a new variant of Silka products will typically costs over $1.2 million. In an industry where products are differentiated, established firms possess the advantages of brand recognition and customer loyalty. Silka lotion with hair was has a niche position in the market that defines the product specific feature. Capital requirement for developing skincare products is about 3,000,000 PhP. Globally, there are many skincare product companies that we must be constantly aware of and their decisions. Switching cost remains very low in this industry and it allows consumers to easily switch their brands because of product dissatisfaction, increased costs, or even out-ofstocked items. Silka Glide will be sold and delivered to stores, supermarkets, convenience stores, physicians and beauty clinics. Supermarkets/hypermarkets made steady value share gains over most of the review period as leading chains opened new outlets and gradually expanded their assortments of premium and niche brands.

Hair Removing Lotion

Product Life Cycle

Sales Cyclicity

Seasonality Profits Category Threat of new entrants/exits Economies of scale

0 +

0 +

Product differentiation

Capital requirements Switching costs

+ +

Distribution

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The opening up of more convenience stores, neighborhood supermarkets and sari-sari stores further increased the size of grocery retailers dominant distribution value share. Though Silka brands are already existing in the market, its future is dependent on buyers. The more intense the competition, the greater their eagerness for price reductions from the sellers. In order to generate above average revenues, we need various quality materials for product production at best prices available. Suppliers of these materials need key customer like Silka for profitable revenue generation and will very likely have little bargaining power because of its small size. There are a substantial number of substitutes for all skincare products, creating an intense competitive environment. The production of good will just be enough to attend the entire consumer. The intensity of rivalry is very high in this industry. The competitive environment in skincare in the Philippines is relatively fragmented with undisputed leader Unilever Philippines Inc. accounting only for 16% of value sales in 2010. As Philippines consumers become more discerning in terms of skincare, manufacturers continue to upgrade their product lines by introducing more effective products which make use of new advances in skincare technology. An example of a product which includes activated carbon, an ingredient which is known for its ability to clear all impurities from users skin for a clear complexion which is free from impurities. After struggling amidst the economic slowdown which hit the Philippines hard during 2009, skincare and personal care rebounded strongly in 2010. The improved economic performance and higher consumer and business optimism in the country brought about by the establishment of a new political administration engendered a conducive environment for more vibrant growth in skincare. Republic act NO. 370 food, drug and cosmetic act An act to ensure the safety and purity of foods, drugs and cosmetic made available to the public by creating the food and drug administration. BFAD (APPROVED AND CERTIFIED) If the economy is low or high it may be stated that it is due to establishment of the political administration that may affect the industry.

Hair Removing Lotion

Bargaining power of buyers

Bargaining power of suppliers

Pressure from substitutes

Category capacity Current category rivalry

+ +

Environmental Technological

Economic

Political/regulatory

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Social As disposable incomes rose and consumer confidence improved, consumers are encourage to trade up to higher quality and more expensive brands, and also to buy personal and skincare products that would previously have considered to be non-essentials. During the review period, consumers in the Philippines became more conscious about the skincare products that they use.

Hair Removing Lotion

Legend: + attractive, - unattractive, 0 not applicable

C. Company and Competitor Analysis Competing Product Features Avon Products,Inc Skin so Soft Moisture Theraphy

Product Feature

KAO brands Company Jergens

Beiersdorf Company Nivea

Cosmetique Asia Silka Glide

Whitening effect Age Defying Softening relief Cell repair and protect Fruit extract Skin firming Intensive moisture Mineral lotion Anti-ich treatment Enriched with Vitamin E Dermatologist tested Hypoallergenic Quick absorbing formula Hair remover (wax)

Objectives,Target Market and Positioning Strategy Objectives (Growth, Hold or Harvest) Avon KAO brands Products,Inc Company Skin so Soft Jergens Moisture

Beiersdorf Company Nivea

Cosmetique Asia Silka Glide 7

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Theraphy Growth

Hair Removing Lotion

Growth

Growth

Growth

Jergens has its local price here in the Philippines to increase its share in the market; developing advertising banners in the internet and continue producing different variants of lotion

As a direct selling business, Avon is still increasing promotional activities and still cutting its price for Filipino consumers

Niveas goal will always be increasing market share through qualitative growth; today they are focusing on increasing their market for Nivea for Men

Silka papaya is one of the desirable lotion for consumers in the Philippine; theyre still pursuing to increase market share and running several television advertisement as Iya Villania and Erich Gonzales being the endorsers

Target market Avon Products,Inc Skin so Soft Moisture Theraphy WOMEN 13 - ABOVE

KAO brands Company Jergens WOMEN 15 - ABOVE

Beiersdorf Company Nivea MEN, WOMEN 15 - ABOVE

Cosmetique Asia Silka Glide WOMEN, GLBT 15 - ABOVE

Positioning KAO brands Company Avon Products,Inc Beiersdorf Company Cosmetique Asia 8

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Jergens Skin so Soft Moisture Theraphy Beauty starts from within Nivea Silka Glide

Hair Removing Lotion

The Beautiful Difference

Get fair, stay fair

Alagang Papaya, Alagang Silka!

Supporting Marketing Mix (Product, Price, Placement, and Promotion) Avon Products,Inc Skin so Soft Moisture Theraphy Skin so Soft Replenishing; Protect and Enhance; Intensive Whitening; Age Defying and Renewing; Minerals Mositure Therapy Ultra Skin Renewal; Oatmeal Itch Relief; Intensive Treatment

Marketing Mix

KAO brands Company Jergens

Beiersdorf Company Nivea

Cosmetique Asia Silka Glide

Product

Jergens Original Scent; Ultra Healing; Age Defying; Softening Relief; Skin Firming; Skin Lightening Lotion

Nivea lotion for Men Whitening cell repair; Revitalizing; Intensive Moisture Nivea Whitening lotion Nivea Extra Whitening Lotion

Silka Papaya Silka Green Silka Glide Hair Removing Lotion

Price (PhP)

All Variants 500ml - 209. 75 200ml - 116.75 100ml 66.75

Skin so Soft 250ml 290.00 250ml 330.00 Mineral lotions 150ml 300.00

Nivea for Men 250ml 189.75 250ml 149.75

Silka Papaya 100ml 57.75 200ml 97.75 300ml 136.75 500ml 237.75 9

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125ml 89.75 250ml 144.75 400ml 229. 75 Whitening lotion 400ml 299.75 250ml 199.75 125ml 129.75 Extra Whitening 400ml 324.75 250ml 214.75 125ml 139.75 Supermarkets; Department stores; Skin care products sections (cosmetics) Print Advertisement; Internet Marketing; Point of sale advertisement; Outdoor Advertisements Supermarkets; Department stores; Skin care products sections (cosmetics) Print Advertisement ; Internet Marketing; Point of sale advertisement; Outdoor Advertisement s

Hair Removing Lotion

Skin Lightening lotion 200ml 214.75 100ml 134.75

Moisture Therapy 250ml 330.00

Silka Green 100ml 61.75 200ml 109.75 300ml 151.75 500ml 252.75 Silka Glide 200ml 179.75 300ml 230.75

Placement

Avon stores; Direct selling

Supermarkets; Drug stores; Department stores; Sarisari stores (cosmetics) TV advertisements ; Outdoor advertisement; Print advertisement

Promotions

Direct marketing; Catalogue and Brochures; Print advertisement; TV advertisements

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Differential Competitor Analysis Avon Products,Inc Skin so Soft Moisture Therapy

Hair Removing Lotion

Capabilities

KAO brands Company Jergens

Beiersdorf Company Nivea

Cosmetique Asia Silka Glide

Ability to Conceive and Design Ability to Produce Ability to Market Ability to Finance Ability to Manage Analysis: The above differential advantage is based on the group research of each company. This determines which companies have the competitive product advantage. The number of stars above shows how competitive the company is.

Prediction of Future Strategies Avon Products,Inc Beiersdorf Skin so Soft Company Moisture Nivea Theraphy Avon is able to NIVEA reveals maximize sales that the digital Jergens to existing marketing advertise customers and strategy has their product continually gain proved highly through a T.V new ones with successful with advertisemen creative more than t; also with marketing. For expected the use of example Online favorable Internet Advertising, responses from marketing Local its real fans, Businesses and awards KAO brands Company Jergens

Strategies

Cosmetique Asia Silka Glide Silka increase their products brand awareness thru mall visits with stalls that allow consumers to test out the product through demonstrations. With the testimonials of customers who 11

Current Strategies

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Hair Removing Lotion

won from the international arena.

had tested the product recorded and aired on T.V. Print advertisements and billboards using credited celebrity endorsers are used as well.

Expected Future Strategies

Nivea's Jergens possible future future Avon's future strategy is to strategy strategies use could be could be diving advertisements continuing into the print that depict what they advertising concepts and had already world. images started. The Emotionally promoting results from attachments changing one's their current could be the self for the marketing core of these better. With the strategy were advertisements use of the all positive . Concepts that internet as its and raising relate to the prime source of the bar of whole aspect of reach to its their beauty to target market. advertisemen women. Specifically ts through the interactive internet media.

Silka's marketing strategy will go unchanged in the future for the next first few years of so, to build brand loyalty amongst customers. If the results are positive, Silka would eventually think about new ways to cement their brand image in the minds of consumers.

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D. Customer Analysis

Hair Removing Lotion

DEMOGRAPHICS, SOCIO ECONOMICS & PERSONALITY Gender Females , GLBT Primary Target Market 13 19; 20 30; 31 46; 47 above Teens, married woman, GLBT and young working professionals who are struggling to whiten their skin without the use of any supplements. Also, consumers who wish the convenience of removing unwanted hairs on their body that will smoothen their skin out. Age Secondary Target Market 1. Supermarkets ( SM, Robinsons, Walter Mart, Rustans) 2. Body Spa Centers 3. Salons 4. Cosmetic clinics Primary target market: at least PhP 20,000 above Income Socio Economic Secondary target market: not applicable Class A , B and upper class C

PSYCHOGRAPHICS, PERSONALITY AND VALUES These are the females and GLBT market who are obsessed and desperate to make their skin whiter, smoother and Market moisturizes. They do not go to any cosmetic clinics they Lifestyle prefer the natural way. They take one step at a time of the A procedure. They prefer removing unwanted hairs on their body on their own way. These are the market that is willing to spend their money on beauty clinics. They go to cosmetic clinics regularly and Market booked sessions with their cosmetic surgeons. They are Lifestyle very desperate to whiten their skins as well as remove B unwanted hairs on parts of their body. They spend time and money to pamper their selves.

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CUSTOMER ANALYSIS What do customers buy?

Hair Removing Lotion

Where do customers buy?

When do customers buy?

How customers choose?

Why they prefer the product?

How they respond to marketing programs? Will they buy it (again)?

Different consumer buys different skin care products appropriate for their skin. Based on research a lot of Filipino use Silka because of its Papaya extract that can really whiten skin. Silka Glide target customer are concentrated and geographically based in any regions in the Philippines. But most of the customers are in Luzon area, especially in Region IV A where Manila is located. Also customer purchased merchandise in malls, supermarkets, convenience stores and beauty clinics and drugstores. Customers buy skin care products regularly. After they consumed it all, they will go to any store that sells it and buy. Silka Glide will be used by customer any time during the year and most especially starting the month of summer. Customer choices are based on their knowledge about the product. The advertisements they see and watch. Also, by family, friends and relatives referrals. Silka papaya is advertised by their endorsers Iya Villania and Erich Gonzales. Some customer prefer the product because their loyal to the brand. Another reason is because they believe it would be effective and they want to try it. Also, they watch celebrity endorsers that says they use it to whiten their skin so customer are attracted and prefer the brand. Silka Glide will be preferred by customers because of its unique product feature. Customers will respond positively to marketing and advertising programs. Yes, definitely. Silka papaya is one of the leading Filipino brands here in the Philippines. Its product meet customer needs and wants. With continuous marketing effort and the guaranteed effect of the product for consumers will encourage consumers to purchase again.

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Hair Removing Lotion

PACKAGING Silka Glide packaging will feature three elements that can attract customers to buy: - Whiter and smoother skin - Hairless skin - Enriched with papaya extract

Waxing Strips

Waxing strips will be included inside the Silka Box. This will be used to remove hair in the skin upon application of Silka Glide hair removing lotion.

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Silka Glide Box

Hair Removing Lotion

Silka Glide box will contain a 200ml bottle of Silka Glide including 10 pieces of waxing strips; buying Silka Glide box is optional because customer can purchase Silka Glide separately with its waxing strips.

III.

OBJECTIVES

A. Corporate objectives To continuously provide top-quality cosmetic products to all its consumers at an affordable price. To help provide personal and professional growth among our employees To build lasting relationship with our trade partner. To help provide improvement in our country as well as our community. B. Marketing objectives 1. Volume and profit Generates 12% sales by the end of the year campaign For the sales to grow by 12% there should be an increase of 939.6 tons ( 27% share of Silka x 29,000 tons x 12%) and Php 868M profit of SILKA GLIDE Therefore, there 16

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Hair Removing Lotion

should be a total of 110,000,000 or 110,000 pieces (bottles) of SILKA GLIDE sold within 1 year to reach the target increase in total sales of Silka. 2. Time frame The campaign will be good for one year. It will start on March 2013 and will end on February 2014 3. Secondary objectives Building brand awareness for the new Silka product line Silka Glide (hair removing lotion) Generate sales not just among the target market, but also to other target market segments that can be tapped. Eliciting positive, accessible brand responses Forging brand relationship with customers that are characterized by intense, active loyalty.

4. Program (marketing mix) We will inform target audience about the new Silka Glide Hair Removing Lotion, its benefits and its competitive advantage through advertisement, sales promotion, internet promotions and events. Television commercial a 30s TVC will be launched in the month of March start of summer to run until the month June. Print Advertisement a print ad that will be placed in strategic places and magazines that will focus on the benefits of the product; featuring its 3 elements: white, hairless skin with papaya enzymes.

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Hair Removing Lotion

Radio Advertisements a 30s Radio ad will be launched in the month of mid March and run until the month of June following the concept of its TVC. Sales Promotion a free Silka gift packs will be given to customer by just following the requirements posted in Silka facebook and website. Internet Promotions a creative LIKE PAGE and website will be made for Silka Glide to increase awareness by customers. Events- a one month beauty pageant including all the preparations will be conducted in Resort World, Manila to promote the new Silka Glide and find the new Miss Silka.

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IV. PRODUCT/BRAND STRATEGY A. Customer target(s)

Hair Removing Lotion

Females , GLBT Teens, married woman, GLBT and young working professionals who are struggling to whiten their skin without the use of any supplements. Also, consumers who wish the convenience of removing unwanted hairs on their body that will smoothen their skin out. see page 7 or 12

B. Competitor target(s) Female and Male (Nivea) Ages from 15 above who wish to have a smooth and whiter skin. see page 7

C. Product/service features Whitening effect Softening relief Enriched with Vitamin E Dermatologist tested Hypoallergenic Hair Remover
see page 6

D. Core strategy 1. Value proposition Customers are being bombarded with claims and propositions from cosmetics brand. They are unclear what really works for the skin and why. Through Silka Glide, we will offer a new approach to hair removing treatments wherein consumers will have an access to the product and information necessary to gain the maximum benefit from using it at home. With this product, consumers can enjoy the lighter and hairless skin they want that can boost ones confidence without worries that come with shaving. 2. Product positioning Silka Glide- a hair removing lotion for all female and GLBT consumer who dealt with unwanted hair all their lives. It comes into two purposes: lotion and hair remover that contains hair removing ingredients which includes emollients, with moisturizer and whitening complex enriched with papaya enzymes and vitamin E that helps soften skin and makes it look younger. This formula mildly and safely removes your hair for long lasting smoothness wherein you can get the results both you and your skin want.

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V. SUPPORTING MARKETING PROGRAMS 1. Integrated marketing communications plan Communication Message: Alagang Papaya, Alagang Silka Brand: Silka Glide (Hair Removing Lotion) Tagline: Bring hairless beauty to life (with Silka Glide)

Hair Removing Lotion

a. Sales Promotion Glide with Silkas Free Packs With this program customer will have the chance to win Silka gift packs which includes Silka calendar 2013, 2 new variants of Silka Whitening Lotion (skin energizer and long lasting moisture); Silka papaya soap and the all new Silka Glide - hair removing lotion. This could be obtain by just joining Silka on Facebook; posting your name and email address and answer the questions given; for example Why Silka products won your heart?; contest will start on January 2013 and ends on March 2013. Three winners will be picked via fruit machine. Winners will be announced on Silkas page and email will be sent. Prizes will be sent by Silka. b. Internet Promotions Silka Glide Like Page on Facebook This program aims to reach consumer target through social networking site. With this program customer will be aware of the new product of Silka and will have the chance to know about more of the product, the benefits it gives, by just liking Silka Glide on Facebook. Also, consumer will have the chance to know the recent promotions of the said product. Silka Website With this program customer will have the chance to post comments about Silka products. They could obtain information necessary to gain more awareness about Silkas product line. Also, this website will feature each of every new developed Silka products. c. Events Miss Silka Hairless Beauty Pageant Silka brand has been having an annual beauty pageant in different regions/cities in the country and has been running for almost five years now. For the year 2013, Silka will be having Miss Silka Hairless Beauty Pageant in Metro Manila where majority of their target market lived. The contestants should be required to have a white and hairless skin. The search will have 80 contestants and will be given a chance to showcase their talents, beauty and brains. This will be held on March 2013 at Resort World Manila.

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d. Advertising Television Commercial SILKA Tama si Iya! Part 3

Hair Removing Lotion

Silka Brand will launch their new TV advertisements with their endorsers Iya Villania. The main goal of the commercial is to introduce the new Silka product line which is the Silka Glide (Hair removing lotion). The main concept is about convenience wherein Iya Villania (endorser) is having trouble with hairs on her skin at the same time whitening it. So, the commercial will feature all the benefits and uses of Silka Glide and upon using it Iya Villania will give a testimonial about the product. Radio Advertisements TAKAW TINGAN This Radio advertisement will run in fm radio in 90.7 and 101.9 radio stations for a 30 - 60 seconds spot. The idea of the Takaw Tingin radio ad will be retained but to add something for the Silka Glide, there will be an additional jingle about the new developed product featuring its benefits. Bring Hairless Beauty to life. Print Advertisements Silka Glide print advertisement will focus on the benefits of the products, both physical and emotional. They will speak to the lifestyle of the target consumer aspires to have. It will be carefully placed to insure the proper affiliation.

2. Price Silka Glide pricing objective will be Penetration Pricing. One of the strength of Silka brand is their lower price but high quality products wherein they will offer more with a less price. Silka Glide aims to increase sales through awareness and brand recognition. Setting low prices will attract more customers for Silka Glide. The pricing tactic that will be used for Silka Glide is product line pricing because of it various product lines its price set will range to its product line for aided recall.

Silka Product Line (200ml) Papaya Whitening Lotion Green Papaya Whitening Lotion Silka Whitening Lotion Moisturizing Milk Lotion Silka Glide Hair Removing Lotion

Price 97. 75 PhP 109.75 PhP 116.75 PhP 132.75 PhP 179.75 PhP 21

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3. Channels We will reach customer through three distinct distribution channel and price point. The product will have intensive distribution system established across the nation (place). Prestige--department and specialty stores Broad--mass merchandisers, supermarkets, cosmetic discounters and drug stores, Specialty--(Body Shop, Bath and Body Works), and Spas and salon. Silka Glide will distributes aggressively its product targeting at 100% placement in all the possible channels of distribution, starting from Key Accounts, Supermarkets, Groceries, Department Stores, Convenient Stores, Drugstores, Chain Stores, Sari-Sari Stores, Public Markets, and the likes. Northern Luzon POWER PLUS ALDENTRADE ALEC ESS HIYAS N.C.R. OFFTAKE Southern Luzon KIYA MARTHA GHIKAR COSLOR RAP RUPRA VISAYAS BASIC ESSENTIAL LDI METROSTATE MEGABRAND ALBERTSON MINDANAO 3-WAYNE CDO AM ENTERPRISES MILL CENTER JSDR RC DRAGON ZAMJA

The above mentioned places are the distribution destination of Silka products and Cosmetique Asia.

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VI. FINANCIAL DOCUMENTS 1. Investment Plans Assumption for 2013 Financial Statement Expenses Sales Promotion Internet Promotions Events Advertising Program Total Estimated Cost 2. Estimates of Profitability Assumption for Year 2013 Estimated Budget for Marketing Strategies Total Expected Sales Marketing Budget vs. Expected Sales: 2 % VII. MONITORS & CONTROLS Marketing metrics METRICS

Hair Removing Lotion

Cost 234, 543 PhP 586,940 PhP 3,975,540 PhP 8,989,680 PhP 13, 786,703 PhP

13,786,703 PhP 868,933,515

Customer

Product Quality

Product Life Cycle

Sales Volume

Market Share

Marketing Programs

HOW DO WE MONITOR USING MARKETING METRICS To monitor customer, Silka will conduct periodic surveys of customer satisfaction level and formally record and manage the action items that result from customer satisfaction surveys through Facebook Like Page, online blogging and comment boxes in strategic places of Silka Glide products. Silka will monitor all the comments made by the customer regarding the product Silka Glide and see what it is needed to improve the quality and other factors of the product. Conducting a focus group discussion on brand awareness, equity measure, and response on product features and benefits. Conduct a continuous and regular tracking of where the Silka Gilde product will position in the product life cycle once it has been out in the market. This will be based on product growth and market acceptance. Ensure setup, plan-o-gram execution, as well as, the stocking, fronting, facing and rotating of the product. Audits will be performed regularly and resolve issues that may arise as a result of these audits, and solve problems at the store level in order to maintain the standards established in the initial sales agreement. Ensure market intelligence to provide the company and the product the view of the market using existing sources of information to understand what is happening in the market place. Conduct market share analysis, marketing cost and profitability analysis Conduct test and control areas to really measures changes cause by the marketing program. Conduct additional measure using media impact.

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