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St. Paul University Manila

College of Business Management Entrepreneurship
680 Pedro Gil St. Malate 1004, Philippines

Submitted by: Code Red

Business Head: Baylon, Rachel An G.

Business Members: Lagman, Alexis
Submitted to: Dr. Jennifer Ramos
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Etude House
Etude House is a South Korean cosmetics brand owned by Amorepacific. The
product was established in 1966. Their first shop launched is in 2004 in Seoul,
South Korea. Etude House are selling in 9 different countries and generally have
40 branches in Philippines and has a total of almost 2000 outlets throughout
worldwide.
Etude’s name was inspired by Polish composer Frederic Chopin’s studies for
piano. The mission of their product is “to beautify young women through lovely
products and friendly counselling”. Etude is a cosmetic brand that believes makeup
should be playful not routine. The products are develops to reflects 4 basic
concepts; high quality, affordability, lovely design and diverse colour range. Etude
slogan is to promote fun make-up play for all girls around the world to be sweet.
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Site EvaluationChecklist
Your favorite Place: Etude House
Why? The researcher chose Etude house because it is popular nowadays. It is the
trend that most students and young professionals use.
Location? 2nd Level, Greenbelt 4
Makati Ave. corner Dela Rosa St., Ayala Center, Makati
*please see attachment A 20

Criteria Explanation Details/ Rating 1-10

Description
1. Pedestrian No. of People Weekend 200 10
Traffic (count on Weekdays 130
average/day)

Type of People Middle class and

Upper class

2.Vehicular Number of vehicles 6 types of vehicles, 6

Traffic Types of Vehicles with a volume of
Traffic Congestion 115,000 vehicles
passing daily,
along with Edsa,
C5 and Roxas
Boulevard.

3. Parking Number & quality 2000 parking slots 8

Facilities of parking spots at greenbelt 4
Distance to Store parking space
Availability of
employee parking
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4.Transportation Availability of There many 10

mass transit (trains, available means of
buses) transportation
Access from major when you go to the
highways store. ( Busses,
Ease of deliveries trains, jeepneys, e-
jeepney, and taxi.

5.Store Number of size of The store is small 7

Composition stores compared to other
branches.
6.Specific Site Visibility There is a good 9
Placement in the location of the
location (good store because it is
spot/) located in the
Size & Shape of walkway to
the lot landmark and
Site & Shape of the greenbelt. And it is
building near to some
Condition and age offices such as
of the lot and Tower 1.
building

7. Terms of Ownership They pay their 8

Occupancy Zoning rentals by the sales
Restrictions of their store.
Number and size of
stores

8. Overall Rating General Location The location is 8

Specific site good but the store
itself is kind of
small.
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Now. What would The researchers wanted this branch of Etude house to expand
you change? their physical shop into bigger size to accommodate the
customer.

Competitive Shopping Report

Brand Description/Image Pricing

1. Tonymolly 45.00 - 2,500.00

2. The Face Shop 65.00 - 3,500.00

3. The body Shop 315.00 - 5,000.00

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Competitive Shopping Report

Your Merchandise Assortment: (Include what % each brand and

your rationale)

Tonymoly – 58 %
The face shop –29 %
The body shop – 13 %

Rationale: Tony moly is the biggest competitor of Etude House compared

the other two. In the reason of it is similar to Etude House in terms of packaging
and variety of products that they offer. Secondly, is The face shop wherein the
packaging is more mature. Lastly The body shop which is very near the location of
the shop
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Servqual

Factor Shopping Trip Shopping Trip

No. 1 No.2
Reliability 7 8

Responsiveness 8 8

Assurance 9 9

Empathy 7 8

Tangibles 10 10

*please see attachment B p22

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RETAIL MARKETING
PLAN
Management team and staffing levels

 Etude supports sweet dreams of action for pink future and better world.
Etude house works with talented young artist performs big and small cultural
event and cares social issues with sweetness and warmth
 Etude house employees are being trained for 1 week for them to know the
products from ingredients to direction on how to use that actual product.
They also need to memorize their products so that they can easily entertain
the customer. One of their requirements is you should know how to do
makeup on other people and
According to our interviewee, being
employed in the etude house has
benefits and they actually enjoy their
job.
 Etude house is a South Korean brand
owned by Amore Pacific Company.
The company was established in
1966, and the corporate name was
changed to Oscar Corporation in
1985.
 In 1990, it was incorporated by
Amore Pacific Group. The name was
changed to Etude Corporation in
1997
 Ma Dong Seok – Etude House CEO
korea
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 KwangBum Sen - Etude House CEO japan

MISSION STATEMENT AND

STRATEGY
 All of you are born as a
princess your own magical story has
already begun princess fantasy is now
happening in your life let your pink
out!!! –Etude.
 As the first makeup brand in
Korea, etude house has philosophy to
enjoy makeup like playing and having
fun rather than consider as repetitive
boring daily routine.

 Various color, satisfying quality,

adorable design – to make all girls in the
world sweet with fun items presented by
etude! “lets enjoy the makeup play
culture with Etude”

 Dollhouse all ladies once long for.

Lovely interior design and hidden cute
accessories all over is etude house
motive. The place that you can explore
surprising new beauty world and have
fun with makeup everyday
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SWOT
STRENGTH
 Well established brand in terms of skincare and makeup
 Affordable price range
 Etude house use gentle ingredients for their skincare which means it is also
good for sensitive type of
 It offers cute packaging
 Wide variety of products from skincare to makeup and also makeup tools

WEAKNESS
 Focus on targeting young generation
 Etude house keeps on changing their packaging and focus to the new
products instead of innovating their product
 They have limited variations of skin tone for their foundations and BB
creams
 Low quality product of their beauty tools
 They do not have an English translation in their products itself

OPPORTUNITY
 Korean cosmetics are now creating a name in terms of skin care and
makeup.
 Most of women are attracted to cute packaging and creative products.
 K-pop and Korean culture are the trends today
 Etude house should promote their products thru beauty bloggers
 They should give free samples in small bottles to be more presentable to
their target market just like other competitors
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THREATS
 Arising of competitors because other Korean cosmetics company is now
establishing in the Philippines
 Other competitors often do promos and sales
 Some of competitors give bigger samples and have a wide range of skin
tones compared to Etude House
 Negative feedback from other consumers online (ex. YouTube bloggers
review, bloggers, etc.)
 The fake etude house cosmetics that affects their reputation thru the
experience of customers.
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SPECIFIC ACTIONS PLANS FOR

THE NEXT 12 MONTHS
Specific actions Timeline
 Widen the target market. From
y to x generation should be
also included in their target
market. 3-6 months
 Innovate and create more
various of skin tone on their
foundation and BB cream line

 Do some research when will be

the perfect timing for sale
promotions
 Make consumers aware of the
fake etude products that being
sold online 1-4 months
 Increase the number of
customers

 Train the sales associates to 1-2 months

know more about the products
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MARKETING PITCH

To create new product line that have a wide variety of skintone shades for
everyone.

Benefits:
1. By doing this, we can solve the threats and weakness of the brand. Moreoever, it
will help to accomplish the organizational goal which to widen the target
market and sustain the consistency of brand image.
2. It will help to increase the taget sales and increase the customer satisfaction
from the brand
3. This will make them more competitive to their competitors

Course of implementation

1. Create a poster campaign to create awareness of the voice of consumer that

wanting to have a wide variety of skin tone shades
2. Post it on social medias
Timeline: 2-6 months
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II. Sales and Marketing Program

the products and services to be offered
Etude house promotes various colors, satisfying quality, and adorable design –
to make all girls in the world sweet with fun items presented by etude. They offer
different kinds of makeup, for example, in their foundation they have BB cream,
foundation line, cushion line and also a cc cream line that have a great benefit in
your skin. In their skincare they have great ingredients that your skin really needs,
also most of their products are also good for sensitive skin type. Besides Etude also
offer make up tools that you will need by playing with your makeup. The
saleslady can also do your makeup in store if you want to have some makeover
look if you will buy their items.
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Market background and research

Etude house launched their first store in the Philippines last 2009 and today
2016 it has already 40 physical stores nationwide.
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Pricing and Margin strategy

Sales

Tonymoly The face shop The Body Shop

Tony moly is the biggest competitor of Etude House compared the other
two. In the reason of it is similar to Etude House in terms of packaging and variety
of products that they offer. Secondly, is the face shop wherein the packaging is
more mature. Lastly The body shop which is very near the location of the shop

*Based on what the interviewee said and also from the research that the researchers did.
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Specific target customer groups and

demographics
Etude house target market is the young generation who loves cute and girly
packaging. But still, etude house also offers good products for young adults to
elderly that can help with their skin issue such as wrinkles, hyperpigmentation and
acne scars.
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Comprehensive Financials
2016 2017 2018

Sales 2,000,000 4,000,000 5,000,000

Cost 1,000,000 2,000,000 1,000,000

Profit 1,000,000 2,000,000 4,000,000

For the sales of 2016 the aim is to have 2,000,000.00 so that the profit and
cost will be considered as successful. Etude house should first invest for the
research if the marketing pitch is really needed also for the research of the
perfect timing on sale promotion should also be implemented by this year. For
the next year 2017 they need to invest more because this will be the official
start of the implementation of the marketing pitch. It is more expensive
because of the trial and error process also we will be needing more
advertisements for the intensifying marketing awareness. For the next year
2018 the target cost should be lessen because of the 2016 and 2017
investment the company should expect more profit than the cost.

* based on what the interviewee said

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Appendices

Sample Interview Guide:

How many people come and go to the store every day?
Can you accommodate all the customers who go in your store?
Can you explain to the customers how to use the product properly? Or explain the
other ingredients that can affect to their skin if they might have allergy to the
ingredient?
How many employees do you have in this branch?
How much is your rental fee?
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*Attachment A

Site Evaluation Checklist

Explanation:
1. The researcher gives 10 points on the pedestrian traffic because there is a big
number of people who pass by and go to their store, according to Ms. There is an
average of 8000 people on weekdays and 10000 on weekends that pass by their
store and 200 people on weekends that actually bought their store and 130 on
weekends.
2. The researcher gives the lowest points in terms of Vehicular traffic because
there is a heavy traffic when you go to Makati. According to City transport
consultant Ernesto Camarillo he said that “Osmeña Avenue is one of the four entry
and exit points in Makati with a volume of 115,000 vehicles passing daily, along
with Edsa, C5 and Roxas Boulevard.
Friday, October 28, 2016 Inquirer. net
3. The researcher gives 8 points on their parking facilities because they have a
parking space allotted for 2000 vehicles. The researcher didn’t give perfect
scores because in rush hours the parking space is already full but there is an
alternative parking space such us Steel parking and Greenbelt 5.
4. The researcher gives 8 points on their parking facilities. The researcher gives a
perfect score in transportation because the location of etude house is very
accessible. There are many by means of transportation that the customer can use it
can be buses, train, jeepney, e- jeepney and private cars.
5. The researcher gives 7 points in terms of Store composition because the store is
small compared to other branch.
6 The research gives 9 points on Specific site because the location is good. There
are many people who pass by their store because it is a walkway to landmark and
greenbelt. And the store interior is good it gives a girly feeling and it attracts
customers.
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7. The researcher gives 8 points in terms of occupancy because when the

researcher asked if how they pay their rentals said that they pay their rentals
according to their sales.
8. The researcher gives 8 as an overall rating because the researchers observed that
the etude house have a good location and accessibility but the store itself is small
to accommodate the customer.
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*Attachment B

Servqual
The researchers went to the Etude house as a mystery shopper to find out if the
products are all available and observed how they will accommodate their
customers. The researchers went to Etude House on October 22 and 24.

On October 22 the researcher went to Etude House at 11:30 am in the morning.

The first thing that we observed is that there is a guard that roaming around the
vicinity and that’s making us feel secure and rated them 9 on Assurance. When the
researchers enter the store the staff are busy. Yes, they greeted us, but they’re not
looking at us instead they are busy with themselves. The other staff are doing her
makeup and the other is arranging some cosmetics. That is why we, rated them 7
on Empathy. The researcher observes that all the products on the website are in
their physical store so they rated them 10 on tangibles. For reliability
the researcher, rated them 7 because when we asked for a specific question about
the product they can’t answer. For responsiveness the researcher, rated them 8
because they accommodate us when we asked them to do an interview and answers
our question nicely.

On October 24 we went back to Etude House at 1 am in the afternoon. There is still

a guard that is roaming around so we give them 9 on the assurance. For empathy
we rated those higher compare to our first trip because they greeted us genuinely
and we thought that maybe they are just busy on our first trip because it is still
early and the store is just opened. Responsiveness we rated them the same because
they respond to our queries. And for reliability, we rated them higher because
when we ask for the dual lasting foundation they answer us that it will be out in the
market soon. And that’s justified that they have knowledge on the product that they
offer. We also buy a makeup remover to their shop. For tangible we rated
them perfectly because they have their entire product available and they have their
tester which is good.
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Retail Assessment & SERVQUAL

Researchers enjoyed the interview and the shopping trip they experienced. The
manager also gives them samples that they can use before buying the large size of
the new skincare line that they launched last 2 months ago.

Documentation
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Marketing Collaterals

*Suggestion poster of the researchers

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Nm Profile of the Presentors

Name: Rachel An G. Baylon

Age: 18 years old
Birthday: January 10, 1998
Hobbies: Attending concerts and fan gathering,
Wanderer, Love Japanese and Korean culture,
Photography.
Skills: Video- Editing, Computer Literate

Name: Alexis S. Lagman

Age: 18 years old
Birthday: June 14, 1998
Hobbies: social life, Korean culture.
Skills: Makeup and Skincare