1. Sensai EX Launching Campaign YK March 5th, 2005 New Products and Service Development

2. CONTENT Background Vision / Mission Product Description Objectives Past Problems Funnel Process New Stage Gate Process

3. BACKGROUND Japanese prestige anti-aging skincare and makeup brand from a company that has over 100 years of history Currently in 23 department stores nationwide Launch four to five products per year

4. VISION To build Kanebo INTERNATIONAL as a leader of super prestige anti-aging skincare brands in the US market. To successfully launch the Sensai EX Line in Fall 2005 to increase the market share and brand awareness among target market. MISSION

5. PRODUCT DECRIPTION Prestige anti-aging skincare line - 3 items Innovative DNA repair technology Patented, exclusive ingredients and formulation Visible results in 10 days Pricing (tentative) : - La Crème $500 - La Lotion $200 - L’Emulsion $300

6. MY MISSION To use the Stage Gate process to plan, strategize and implement a marketing campaign to launch the Sensai EX collection to achieve objectives.

7. DEFINE OBJECTIVES Specify marketing objectives of the Sensai EX launching campaign  Set criteria for making decisions  Be quantifiable and measurable  Specify a time frame

8. OBJECTIVES To obtain at least 2% of market share in the anti-aging cream segment of the prestige skincare market by the end of 2006. To sell-through a total of 3700 line units ($3.7 million retail sales) during the Fall 2005 and Spring 2006. To increase the brand awareness rate to 50% from 25% among target market. To increase the number of active clientele by 30%

9. PAST PROBLEMS No cross functional campaign planning No concrete campaign focus Advertising campaigns are introduced without pre-launch testing for effectiveness No extensive and careful analysis of the market and competitors before planning a campaign

10. FUNNEL MODEL 1. Ideation Collect and store ideas 2. Internal Research Competitive info Past Data Field feedback 3. External Research Retailers Focus group 4. Review Criteria Media Budget Timeline Objectives 6. Test Creative Press Release Programs 7. Review Analyze Feedback Adjust plan 8. Financial Review Cost Sales&profit projection 11. Control and adjust Plan 10. Post Launch Review Measure results Analyze data 4. Develop Plan and creative Strategies 9. Implement Plan 1 345678 9 10 112

11. NEW STAGE GATE PROCESS Gate 1 Stage 1 Scoping Stage 2 Build Strategies Gate 2 Gate 3 Stage 3 Development Gate 4 Stage 4 Test and Validate Gate 5 Stage 5 Implement Post Implementation Review Idea Generation Go/Kill Point

12. IDEA GENERATION Idea Generation Ideas are brainstormed and collected from: - Marketing - Sales team - Training - PR agency - Headquarters - Retailers - European Subsidiaries Ideas are stored in the idea bank

13. GATE 1 Gate 1 Meet the vision and mission of the company? Realistic and achievable? Meet the objectives? Reach the target market? Ideas are measured against the Broad Criteria

14. STAGE 1 - SCOPING Stage 1 Market Analysis - Market overview - Competitive situation - Consumer behavior Macroenvironmental Analysis - Demographic and social trends - Economic situation Internal Assessment - Strength/weakness - Recent campaign performance Market Segmentation - Target markets Preliminary Investigation

15. GATE 2 Gate 2 Perform SWOT Analysis and create TOWS matrix to evaluate information  Effectively reach out to the target markets?  Cost effective and/or within the preliminary budget?  Focus on the strengths of the brand and product?  Fit the strategy focus?  Meet objectives? Check against Specific Criteria

16. Opportunity 1.Super prestige skincare market is expanding 2.Anti-aging skincare users like new products that deliver quality and results 3.Rise of cosmetics PR Threat 1.Competitors have a strong financial background, thus have an ability to invest in marketing campaign 2.Many new anti-aging luxurious skincare brands are emerging Strength 1.Anti-aging skincare with excellent quality, texture and effectiveness 2.Patented new ingredients with revolutionary DNA repair technology 3.High sampling return rate 4.A century of brand history Weakness 1.Low brand awareness in the US market 2.Small market share 3.Small campaign budget 4.Limited distribution channel [W-O Strategies] PR oriented campaign to aim editorial coverage in the top magazines Place an emphasis on the exclusive elements of the product and brand (e.g hard to find cult favorite etc) [S-O Strategies] Multi media campaign to focus on innovative technology and reliable product benefits Strengthen sampling efforts to capture target market [S-T Strategies] Campaign to differentiate Sensai EX from other competitive products. Focus on R&D credibility and history of the brand. [W-T Strategies] Increase campaign budget TOWS MATRIX

17. STAGE 2 - BUILD STRATEGIES Stage 2 Campaign budget Timeline Supporting strategies - PR - Advertising (multi media) - In-store promotional events - Sampling opportunities - Promotional tools/collateral - Corporate website - Training program - Sales force incentive program

18. GATE 3 Gate 3 3 Meet the direction and focus of the campaign? 3 Meet the objectives? 3 Fit the budget and timeline? 3 Plans and details confirmed for next stage “development”?

19. STAGE 3 - DEVELOPMENT Stage 3 Develop Prototypes - Advertising creative - Promotional tools/collateral - Training/sales force program - Website content - Press launch event details - In-store promotion details - Sampling details Feedback internal test results - cross functional team members Update financials

20. GATE 4 Gate 4 3 Positive feedbacks? 3 Reach out to the target market? 3 Key message is well-communicated? 3 Meet the objectives? 3 Within budget? If necessary, reevaluate the strategy and/or bring it back to Stage 3. Post-development review

21. STAGE 4 TESTING & VALIDATION Stage 4 Run test on all creative Collect feedback from external sources - User/retailer opinion - Focus group Financial Analysis

22. GATE 5 Gate 5 3 Positive feedbacks? 3 Reach out to the target market? 3 Meet the budget and timeline? 3 Cross functional team are on the same page? 3 Confirmed details for each strategy?

23. STAGE 5 - IMPLEMENT Stage 5 Make necessary adjustments and go into production of all creative Implement the launch plan in full scale - Advertising - PR Events/Mailer - Training program - Website - In-store promotion - Out of store promotion

24. POST-IMPLEMENTATION REVIEW Monitor and analyze result data Control and adjust plan depending on performance Critique failures and successes - Met short term/long term objectives? - Within budget? Start planning for a new campaign using current data Post Launch Review