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Perniagaan Orang Kampung (POK): Village folks go global!
Sunday 23 December 2007
Natasya: All in the Family
http://www.natasya2u.comManagement style
Natasya is founded by Datin Hajjah Muniro Kassim, who had her share of challenges in business ventures and marketing her herbal-based cosmetic brand.
Natasya is founded by Datin Hajjah Muniro Kassim, who had her share of challenges in business ventures and marketing her herbal-based cosmetic brand.
Perwanza Enterprise (M) Sdn Bhd, a family firm in mind, body and soul, was established in 2002 by its CEO, Datuk Suhaimy Othman, who is the husband to the founder. Its MD is Mohd Irwan Iryani Suhaimy, the son to the founder, its ED is Nursuhaila Eliani Suhaimy, daughter and in-house model (left pic) and its GM is Jasny Othman, brother to the CEO.
Its management style is conventional, where the CEO controls most decision making with a clear chain of command.
The top management holds meetings with state managers (stockists) in the peninsula once a month and twice a year for those from Sabah and Sarawak
It employs 60 workers in its manufacturing plant in Parit Buntar and around 20-30 in its packaging and administration unit at the HQ in Damansara Damai.
Manufacturing
It manufactures its products at its existing rented premise in Parit Buntar, Perak. Its own plant, costing MYR12 million, is scheduled to open at the end of 2007.
Products & services
Tuan Haji Jasny Othman says that, based on feedback from stockists and distributors, Natasya is the "No 1 cosmetic product in Malaysia", in terms of sales volume. Its products sells like 'goreng pisang panas' (hot banana fritters) - moving swiftly from manufacturing plant to packaging unit to stockists and, finally, to distributors and end-users. According to him, Natasya enjoys more than MYR1million sale a month. The market demands are rising too rapidly for the production to meet.
Its latest product is the Gamat Prune for diabetics, which took six months to develop. The product will be launched and released on 17 November 2007. Each new formula is based on customers’ testimonials and demands and tested on real users (No Animal Testing). Product upgrading and improvement is handled by six chemists in its Parit Buntar plant.
Pricing strategies
In terms of approach to pricing, Natasya can be considered to adopt a ‘mass-tige’ mode, that is prestige pricing for mass market as well as price lining, charging different prices for different product range.
Marketing strategies
Following the foot prints of NR and ST, Natasya appoints stockists who then recruit distributors nationwide. It used to require a minimum purchase of MYR15,000 to be a stockist in 2003 but now it costs about MYR100,000 to start-up.
Datin Hajjah Muniro started marketing the Natasya brand by wooing factory workers and cooperative members via personal selling. It was not a 'one-off, hit and run’ venture but followed through every month (on pay day). With a policy of money-back guarantee, she built trust and brand loyalty among her regular customers.
There are two Natasya Shoppe outlets in Sungei Petani and Bukit Mertajam and the company is negotiating for booths at hypermarts such as Giant, TESCO and Carrefour.
As for regional and international markets, there are demands from Indonesia, Vietnam, China and the Middle East, but plans for expansion overseas can only be implemented after the new manufacturing plant is launched.
Branding initiatives
The brand name, Natasya, is taken from the founder's granddaughter’s name. Its trademark is registered with the Intellectual Property Corporation Malaysia. The brand's slogan is “Mengembalikan keayuan dan kejelitaan” (To restore your appeal and beauty), its logo is the 'mehrab' (private prayer sanctuary) and its corporate color is green, symbolising Islamic values, nature and freshness.
The top management holds meetings with state managers (stockists) in the peninsula once a month and twice a year for those from Sabah and Sarawak
It employs 60 workers in its manufacturing plant in Parit Buntar and around 20-30 in its packaging and administration unit at the HQ in Damansara Damai.
Manufacturing
It manufactures its products at its existing rented premise in Parit Buntar, Perak. Its own plant, costing MYR12 million, is scheduled to open at the end of 2007.
Products & services
Tuan Haji Jasny Othman says that, based on feedback from stockists and distributors, Natasya is the "No 1 cosmetic product in Malaysia", in terms of sales volume. Its products sells like 'goreng pisang panas' (hot banana fritters) - moving swiftly from manufacturing plant to packaging unit to stockists and, finally, to distributors and end-users. According to him, Natasya enjoys more than MYR1million sale a month. The market demands are rising too rapidly for the production to meet.
Its latest product is the Gamat Prune for diabetics, which took six months to develop. The product will be launched and released on 17 November 2007. Each new formula is based on customers’ testimonials and demands and tested on real users (No Animal Testing). Product upgrading and improvement is handled by six chemists in its Parit Buntar plant.
Pricing strategies
In terms of approach to pricing, Natasya can be considered to adopt a ‘mass-tige’ mode, that is prestige pricing for mass market as well as price lining, charging different prices for different product range.
Marketing strategies
Following the foot prints of NR and ST, Natasya appoints stockists who then recruit distributors nationwide. It used to require a minimum purchase of MYR15,000 to be a stockist in 2003 but now it costs about MYR100,000 to start-up.
Datin Hajjah Muniro started marketing the Natasya brand by wooing factory workers and cooperative members via personal selling. It was not a 'one-off, hit and run’ venture but followed through every month (on pay day). With a policy of money-back guarantee, she built trust and brand loyalty among her regular customers.
There are two Natasya Shoppe outlets in Sungei Petani and Bukit Mertajam and the company is negotiating for booths at hypermarts such as Giant, TESCO and Carrefour.
As for regional and international markets, there are demands from Indonesia, Vietnam, China and the Middle East, but plans for expansion overseas can only be implemented after the new manufacturing plant is launched.
Branding initiatives
The brand name, Natasya, is taken from the founder's granddaughter’s name. Its trademark is registered with the Intellectual Property Corporation Malaysia. The brand's slogan is “Mengembalikan keayuan dan kejelitaan” (To restore your appeal and beauty), its logo is the 'mehrab' (private prayer sanctuary) and its corporate color is green, symbolising Islamic values, nature and freshness.
Its packaging materials, such as acrylic for the bottles, are imported from China.
Perwanza does not believe in hiring brand consultants; their preferred mode is management brainstorming.
IMC strategies
Perwanza has its own media planner who prepares the media schedule, budget and buying of media space/airtime. Natasya's adspend for 2007 is approximately MYR2million for both contractual and ad-hoc media buying.
IMC strategies
Perwanza has its own media planner who prepares the media schedule, budget and buying of media space/airtime. Natasya's adspend for 2007 is approximately MYR2million for both contractual and ad-hoc media buying.
In terms of media mix, the selection is wide - ranging from print to below-the-line advertisements. Natasya radio ads can be heard on Radio Era (2005), Hotfm (2006) and RTM stations (2007) and its TV commercials over TV3. As for outdoors, there is a billboard in Sungei Petani and signages around the Klang Valley urban market center. The brand also reaches out to commuters via transit ads that wrap around the LRTs plying the KL routes.
Apart from contractual releases, the company also make allocations for 'ad hoc' media buying such as sponsoring RTM’s special Eid programs.
Natasya established good media relations that earned free media publicity via write-ups in Malay publications such as Utusan Malaysia and Harian Metro. The company plans to launch Natasya Voice, a talent show in partnership with RTM, where the winner will perform at the company's second annual dinner.
Apart from contractual releases, the company also make allocations for 'ad hoc' media buying such as sponsoring RTM’s special Eid programs.
Natasya established good media relations that earned free media publicity via write-ups in Malay publications such as Utusan Malaysia and Harian Metro. The company plans to launch Natasya Voice, a talent show in partnership with RTM, where the winner will perform at the company's second annual dinner.
As for loyalty program, the company offers refund on returned bottles (not meant for recycling) to stimulate repeat purchase. They also hold regular workshops for stockists, distributors and customers.
Like most other Malay cosmetic brands, Natasya relies on in-house spokespersons, from the founder to her daughter, daughter-in-law, sister-in-law and niece.
Executive interview
Jasny bin Othman, General Manager, Perwanza Enterprise (M) Sdn Bhd is an accountant by training. Hence, he prided himself in managing the company's finances well, so well that Perwanza does not have to rely on overdrafts or loans to sustain or expand its business.
He graduated in 1983/84 with a Diploma in Accountancy from UiTM. He joined the national oil and gas corporation, Petronas, in 1986, as an accountant. In 1987, he and his brother started a family business, Pearl of the Orient (in Penang), that operated a travel agency and logistics outfit. They sold the business prior to the economic downturn in 1997 and moved to Kuala Lumpur. They started Perwanza and Natasya in 2002 after dabbling in various business ventures.
Like most other Malay cosmetic brands, Natasya relies on in-house spokespersons, from the founder to her daughter, daughter-in-law, sister-in-law and niece.
Executive interview
Jasny bin Othman, General Manager, Perwanza Enterprise (M) Sdn Bhd is an accountant by training. Hence, he prided himself in managing the company's finances well, so well that Perwanza does not have to rely on overdrafts or loans to sustain or expand its business.
He graduated in 1983/84 with a Diploma in Accountancy from UiTM. He joined the national oil and gas corporation, Petronas, in 1986, as an accountant. In 1987, he and his brother started a family business, Pearl of the Orient (in Penang), that operated a travel agency and logistics outfit. They sold the business prior to the economic downturn in 1997 and moved to Kuala Lumpur. They started Perwanza and Natasya in 2002 after dabbling in various business ventures.
Sendayu Tinggi (ST): Pauper to Princess
[I had mentioned that Sendayu Tinggi has to rebrand to 'ST' for it to be accepted in markets other than the Malay heartland in Malaysia. As some people say, "great minds think alike", and there they were - an elegant new line packaged in sultry silver and subtly whispering 'ST' (probably, in response to Natasya Gold) - lining the counter of their flagship store at Jalan Tuanku Abdul Rahman, downtown KL. They must have hired some very creative minds for their rebranding exercise; there goes my chance at being engaged as their brand consultant! I should have heeded an advice to go into the local cosmetic industry in 2003 and would have made my millions by now.]
Profile of founder
Rozita Ibrahim, who started ST in 2002, is the beacon of Hope for all struggling, single mothers who were left to their own devices in facing the harsh realities of life from paying for the midwife's fee to feeding the hungry mouths of their young children.
Management style - Rozita is its founder, owner and managing director. She started a fledgling enterprise in a single-unit shop lot which has now expanded and diversified into a group of parent and subsidiary companies such as Sendayu Tinggi Corporation (M) Sdn Bhd, Sendayu Tinggi Body & Skincare (M) Sdn Bhd., Ethnique Food Industries Sdn Bhd, ST Advertising Agency Sdn. Bhd., C MAX Exhibition & Promotion, Sendayu Tinggi Logistic (M) Sdn. Bhd., Sendayu Tinggi Manufacturing (M) Sdn Bhd/Zeeta Herb's Manufacturing (M) Sdn. Bhd.
Products & services
Based on Rozita's ingenuity in turning adversity into opportunity, she capitalised on the recipe that the midwife gave her to make her debut into the domestic market via ST's signature range of female post-natal care. ST has now added a long list of items to its inventory with the introduction of the Slimming Set, the Natural Beauty Set, the Women Set, the Honeymoon Set, the Alternatif Set and the Aromatherapy Set. Apart from the ‘health care’ sets, Sendayu Tinggi also market ‘figure-enhancing’ products such as Ammy Corset (Bengkung Sendayu Tinggi), skin care sets and ‘assorted’ items such as Normal/Dehydrated Set, Sensitive Skin Set, Combination & Oily Skin Set, Mature Skin Set, Intensive Facial Set, Whitening Essences, UV Cream, Rejuvenating Cream, Face Mask, Between, Va' Riosa Shampoo, Virginique, Body Contour Cream, Toner, Repair Cream, All Soothing Cream and All Compact Foundation (in Natural Beige and Soft Beige).
Marketing strategies
Within five years of its appearance on the domestic scene, Sendayu Tinggi has managed to penetrate the regional market via countries such as Singapore, Brunei and Myanmar, as well as the United Arab Emirates/Dubai and Australia. Sendayu Tinggi now has more than 200 registered stockists nationwide. Its flagship store in downtown Kuala Lumpur (Jalan Tuanku Abdul Rahman, opposite Maju Junction) has the makings of a hallmark of class and sophistication, not unlike Elizabeth Arden's Red Door signature salons.
Although Sendayu Tinggi’s brand image is that of a traditional herbal-based treatment, its approach to marketing is contemporary and innovative.
Apart from its website, http://sendayutinggi.com/, the company utilizes short messaging system through its Sendayu Tinggi Interaktif SMS. To create brand awareness, recognition and recall, Sendayu Tinggi (ST) harnesses integrated marketing communication (IMC) tools such as advertising, direct marketing, personal selling and publicity.
Branding Initiatives - The brand story around Sendayu Tinggi is that of 'reaping the goodness of Mother Nature'. Rozita chose red and yellow for her logo of a framed wild flower (pic to be posted). However, she tends to use different shades of greens, from the lightest to the darkest, to personify the brand persona, immersing and embracing nature in all its bounty. Like most Malay cosmetic brands, Rozita is the key brand ambassador. However, her eldest daughter, who is in her twenties and displaying salon-styled hair, is increasingly used as the 'face' of Sendayu Tinggi.
IMC Strategies
ST advertises weekly in local Malay dailies and weekly women magazines such as Mingguan Wanita and Rapi. It also buys commercial spots on local television stations and sponsors women programmes such as “Anggun Ayu” (Seasons 1 and 2, also available in CDs) on free-to-air channel TV3. Out-of-home advertisements such as signage, buntings, STAR LRT train stations and panels featuring the founder and her range of beauty products can be seen along high-traffic streets and train routes in downtown Kuala Lumpur. ST also uses direct marketing and below the line advertising such as paper bags, product catalogues, backdrops for ST events (product launches, charity events, road shows, workshops) and exhibition booths at (national and international) trade fairs.
Additional information after executive interviews.
Friday 23 November 2007
Nona Roguy (NR): La Grande Dame
Datin Hajjah Sharifah Anisah (DHSA) paved the way for other Malay female cosmetic entrepreneurs in chasing the Malaysian Dream of eternal youth, physical beauty and self-earned money when she founded the Mustajab Industries Sdn. Bhd (MISB) in 1991.
Not unlike the Estee Lauder Companies, MISB is a family firm established by its matriarch and expanded vertically into plantation, manufacturing, product development, management and marketing.
Before NR appeared on the local cosmetic scene, the domestic market was flooded with Indonesian brands such as Mustika Ratu and Sari Ayu.
NR managed to edge the Indonesian competition by staking her claim on the shared heritage of beauty secrets from the 'kraton' (palace).
Many Malay female customers must have felt a tinge of pride when her visage replaced the portraits of the quintessential 'Ibu' (mother) from 'Seberang' (across the Straits of Melaka) that graced the paper packets of 'jamu' (traditional herbal remedies) or the plastic bottles of herbal-based lotions and creams in 1993.
1a. Plantation
The group's plantation is operated by a sister company Pandan Intan (PI) Sdn. Bhd. in Gua Musang, Kelantan. It comprises 1500 acres of agriculture land, in which about 500 acres have been planted with selected herbal crops. PI forged collaborations with local universities and research institutions such as MARDI, FRIM, USM, and Oxford Natural Products of UK (ONP), "to develop a well managed, integrated and researched herbal farm".
1b. Manufacturing
The production plant is managed by another sister company, MISB Resources (MR) Sdn. Bhd.
It boasts of a highly dedicated team of Malaysian professional managers and scientists, who are committed to the aspiration of the Nona Roguy Group in "being a true and dynamic leader in the herbal industry". MISB Resources Sdn. Bhd. was awarded the New Millenium Award at the 32nd International Award For Commercial Prestige, Rome, Italy in November 2002.
2a. Products
NR's signature brands include Mustajab internal cleanser, Traditional moisturising internal toner, such as Madu tenaga/madu harmonis, Traditional personal health care, such as Dhia soap, Herbaneka bersalin (post-natal care) and Bio-tablet – herbal range of internal cleanser, that blazed the trail for other 'copycats' to follow.
2b. Services
Apart from products, NR branched into the fledging spa industry when it opened health centers that offers traditional health and beauty treatments, and specialized health treatments for various health problems which are conducted under the supervision of trained and skilled health consultants based in Kuala Lumpur.
There are also strategic alliances of Traditional Health Spas and Traditional Post Natal Care Centre with local and international partners, such as YTL Group.
2c. Training
Workshops on the art and science of traditional healing are also conducted to provide a holistic view of traditional Nusantara mode of healing. NR claimed to have trained thousands of its members and health enthusiasts in the art of herbal healing and treatment, using Asian herbs and spices, since 1993.
3. Marketing strategies
Instead of lining the shelves of pharmacies and selling OTC, NR banked on the bionetwork of direct marketing, which saved on additional distribution costs.
In Malaysia, it has 430 stockists serving more than 100,000 members while in other regional and international markets such as Singapore, Brunei and the Middle East, it appoints selected sole/master distributors, who in turn have their own networks for distributing the products and services.
NR also takes advantage of convenient online marketing.
4. Branding initiatives and IMC campaigns
As noted above, NR has used history and tradition of the Nusantara's health and beauty legacy to establish its brand image. Its slogan, "Keunggulan merentasi masa" (Enduring charm), underscores its core values of cultural heritage, traditional health practices and beauty secrets that are inherited from the past. Its corporate colors are green and yellow and its logo is a royal symbol from ancient kingdoms in the Nusantara.
In terms of IMC tools, it has used direct marketing via stockists and distributors' network, personal selling via health centers and training sessions, sales promotions, events and brand publicity to achieve sales and brand presence.
Website: http://www.nonaroguy4u.com.my
More information on brand building and IMC campaigns after executive interviews.
Analysis and discussions will be at the end of case studies.
Not unlike the Estee Lauder Companies, MISB is a family firm established by its matriarch and expanded vertically into plantation, manufacturing, product development, management and marketing.
Before NR appeared on the local cosmetic scene, the domestic market was flooded with Indonesian brands such as Mustika Ratu and Sari Ayu.
NR managed to edge the Indonesian competition by staking her claim on the shared heritage of beauty secrets from the 'kraton' (palace).
Many Malay female customers must have felt a tinge of pride when her visage replaced the portraits of the quintessential 'Ibu' (mother) from 'Seberang' (across the Straits of Melaka) that graced the paper packets of 'jamu' (traditional herbal remedies) or the plastic bottles of herbal-based lotions and creams in 1993.
1a. Plantation
The group's plantation is operated by a sister company Pandan Intan (PI) Sdn. Bhd. in Gua Musang, Kelantan. It comprises 1500 acres of agriculture land, in which about 500 acres have been planted with selected herbal crops. PI forged collaborations with local universities and research institutions such as MARDI, FRIM, USM, and Oxford Natural Products of UK (ONP), "to develop a well managed, integrated and researched herbal farm".
1b. Manufacturing
The production plant is managed by another sister company, MISB Resources (MR) Sdn. Bhd.
It boasts of a highly dedicated team of Malaysian professional managers and scientists, who are committed to the aspiration of the Nona Roguy Group in "being a true and dynamic leader in the herbal industry". MISB Resources Sdn. Bhd. was awarded the New Millenium Award at the 32nd International Award For Commercial Prestige, Rome, Italy in November 2002.
2a. Products
NR's signature brands include Mustajab internal cleanser, Traditional moisturising internal toner, such as Madu tenaga/madu harmonis, Traditional personal health care, such as Dhia soap, Herbaneka bersalin (post-natal care) and Bio-tablet – herbal range of internal cleanser, that blazed the trail for other 'copycats' to follow.
2b. Services
Apart from products, NR branched into the fledging spa industry when it opened health centers that offers traditional health and beauty treatments, and specialized health treatments for various health problems which are conducted under the supervision of trained and skilled health consultants based in Kuala Lumpur.
There are also strategic alliances of Traditional Health Spas and Traditional Post Natal Care Centre with local and international partners, such as YTL Group.
2c. Training
Workshops on the art and science of traditional healing are also conducted to provide a holistic view of traditional Nusantara mode of healing. NR claimed to have trained thousands of its members and health enthusiasts in the art of herbal healing and treatment, using Asian herbs and spices, since 1993.
3. Marketing strategies
Instead of lining the shelves of pharmacies and selling OTC, NR banked on the bionetwork of direct marketing, which saved on additional distribution costs.
In Malaysia, it has 430 stockists serving more than 100,000 members while in other regional and international markets such as Singapore, Brunei and the Middle East, it appoints selected sole/master distributors, who in turn have their own networks for distributing the products and services.
NR also takes advantage of convenient online marketing.
4. Branding initiatives and IMC campaigns
As noted above, NR has used history and tradition of the Nusantara's health and beauty legacy to establish its brand image. Its slogan, "Keunggulan merentasi masa" (Enduring charm), underscores its core values of cultural heritage, traditional health practices and beauty secrets that are inherited from the past. Its corporate colors are green and yellow and its logo is a royal symbol from ancient kingdoms in the Nusantara.
In terms of IMC tools, it has used direct marketing via stockists and distributors' network, personal selling via health centers and training sessions, sales promotions, events and brand publicity to achieve sales and brand presence.
Website: http://www.nonaroguy4u.com.my
More information on brand building and IMC campaigns after executive interviews.
Analysis and discussions will be at the end of case studies.
Serai, SirehemAs and SRJ Flora AromatiQ
Now that I'm in my fourth semester of teaching International Advertising (IA), I've gotten quite used to hearing students saying,
"But Ms, local brands sucks!"
"Well, all the more reason why you and I have to help in building local brands."
Quietly, however, I have to concede that they have a point there.
And an hour's tour of the 4th Herbal Asia 2007 just before it closed at 5:30pm last Sunday (4 November 2007) was sufficient to prove that many exhbitors display only rudimentary knowledge about branding.
Now, let's go through some of the brand names for local 'cosmeceuticals' and you be the judge:
1. Serai (no slogan) but presents a uniform and consistent design for its packaging;
2. SirehemAs, with its slogan "Difference your life style" and its range of Xanzwhite ("Beauty inspired by science ..."), Warisan Puteri, Sireh Slim, Losyen Herba Sireh, Sireh Seaweed Moisturizer and Kopi Bos;
3. SRJ Flora AromatiQ - "UNA - U naturally anggun" and its 'self care set', 'hair care set' and 'home decor'.
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