EVALUATION

TOP-TWO-BOXES:

Top-two-boxes: I would definitely buy I would probably buy I dont know I would probably not buy I would definitely not buy

10% 57% 15% 11% 7%

We have a concept test about our new eyeliner. As shown, 10% of respondents said they would definitely buy the eyeliner and 57% said they would probably buy it. So the top- two-boxes score is 10 + 57 = 67%.

A-T-A-R MODEL:
Awareness: M.A.C is famous international cosmetic brand and it is the major-brand for the cosmetic market in Korea. Because of high level of recognition, we assume the awareness rate is 70%. Trial: Based on the top-two-boxes score, we calibrate as 80% of definitelyactually buy and 30% of probably actually. We a ssume the percentage that will be among the first to try our new eyeliner is 80%10%+ 30%57%= 25%. Availability: In Korea, there have 49 counters in the department store and only one direct-sale store in . So we estimate the availability rate is 65%. Repeat purchase: We estimate the share of purchases of the new eyeliner among those who tried the product is 60%.

A-T-A-R
80% 70% 60% 50% 40% 30% 20% 10% 0%

A-T-A-R

Above all, our market share = awareness trial availability repeat= 70% 25%65%60%= 6.8%

HOUSE OF QUALITY:

Roof Strong positive Positive Negative Strong negative

matrix strong medium weak

Through our HOQ matrix, we can found that the convenience, Varity, and smudge free are our advantage and these customer attributes can also translate into technical specifications easily. But we need to improve simplicity of our new product in order to convert to engineering characteristics effectively. So our new eyeliner has superiority in the convenience, variety, and smudge free, because most of engineering characteristics are not mutually exclusive. But we still have to balance the weight of stamp tip, changeable tip, and remover. At the same time, through the central grid, we can identify the smudge free will affect the eye makeup remover negatively. Because our new eye liner has strong ink. Obviously, it need require more cooperation between marketing and technical personnel.

PRICING STRATEGY

We asked 60 customers to submit sealed bids for our new eyeliner. The data has been shown that this method elicits the willingness-to-pay measures from the customers. More than 60% customers want to pay higher than 25,000. We can then calculate the projected profits from charging any price through the follow formula: Profits = (P-c) x Q (P) Using the formula, we can calculate the profits for many candidate prices. As shown, maximizes profit is 1,040,000. So our price of new eyeliner is 30,000.