Contents

01. About us

04. Why Talent?

05. Marketing Target

02. History

• SWOT

• Main Target

03. Our Brand

• Marketing Channel

• Organization Chart

• Halal Certification

• Key Strategy

• Product Categories

• Management Strategy

• Celebrity Marketing

• Product SKU

• Myeong-Dong branch

• Product Strategy

• Malaysia branch

• Channel Strategy

• Other Advertisements

• Advertisement Strategy

• Vision • Mission • Design Concept • Associative Image

• Target Definition • Positioning • Symbol

01. About Us

Talent cosmetics, established in 1980 in Myeong-dong, Jung-gu, Seoul (also known as "TALENT“), has been trying to inform the beautiful culture of Korea to domestic and foreign tourists for 30 years. In addition to the trust based on good quality of "Human commodity" and reasonable price, together with "K-POP” popularity, Talent is marching its way beyond Asia as a global brand in the world. " Talent & K-Story store” of " Talent cosmetics” has gotten a lot of attention from not only the domestic but also the world ,especially Japan and South East Asia, as the cultural exchange and meeting place of “K-POP & Drama” and "Cosmetic" where you can enjoy the Korean culture and various cosmetic items. Talent cosmetics will become a brand that goes beyond Asia and represent the Korean Wave across generations all around the world.

02. Company History 1980 - Established Myeong-dong Choong-moo Cosmetics 1997 - Converted the corporation to Talent Cosmetics 2000 - Opened the 1st Myeong-dong branch

2002 - Opened the 2nd Myeong-dong branch 2005 - Launched Talent Cosmetics‟ Brand “Levenne” 2008 -

[Sunwoo Cosme] brand launching Export contract with Idadongyasang of Japan Launched in „Parco Department Store,‟ Sinjjukku Launched in Mirukosi Department Store Lauched in 40 other Sinjjukku stores Product 90.9 : 2nd place in Rakuten, Japan‟s renowned online website - Snail mask : 1st place in the cosmetic section on AMAZON

2010 - Opened http://www.talentcosme.jp - Haruna-ai as the exclusive model 2011 - Established Talent Cosmetics Corporation - Opened KSTORY, K-POP location in Myeongdong - Launched in duty free shops(Sogong-dong, Jamsil World, Busan) -Listed as the main foreign tour shop (Seoul tour information site „konest‟, „Seoul Nabi‟ etc. ) - Choshinsung as the exclusive model (2011~2013)

2012 - Opened 3rd branch in Myeong-dong (Se-jong hotel) - Launched in Dong-wha duty free shop 2013 - 4 minute (~2015 March) , Ocean as exclusive models - Thailand/ Vietnam/ Indonesia/ Singapore/ - Export in Hong Kong and other South East countries -Established Chinese branch -Media exposure on Tokyo TV of Japan, Daching of China about 12 times 2014

2015

- “Halal certification” by JAKIM of Malaysia (on lipstick as the 1st in the world) - Opened ”Talent KPOP” store - Exclusive Talent Store - Press conference celebrating halal certification with LPG as exclusive model

- Participated in the International Cosmetic Beauty Exhibition 2015 2016 - Applied for approval on 30 products for Chinese Hygiene Approval - Participated in the International trade & Consumer Exhibition - Participated in International Rotary Competition “House of Friendship” 2016 - Export contract with Poiland

03. Brand Report - Vision

“Sunwoo Cosme “ originated from daughter‟s name and has the concept “lovely mother‟s lovely daughter.” It is a brand with family love. This brand has the vision that both pursues the generation and the world, a brand that a daughter and a mother can use together.

In addition, “Levenne”, ”Hui-hwang” and “Jac Skin”, are sub-brands with the Talent Cosmetics’ philosophy, “innovation embedded in Korean Wave products,” aimed to create products like the global brand Apple

03. Brand Report - Mission

NO 1. Brand in Global Cosmetic Beauty

Based on the trust of “human products” and reasonable price, together with the “K-Pop” wave, Talent Cosmetics will become a global brand that goes beyond Asia

Innovative & Generational Beauty Brand

We love and respect women. We will develop good quality products that satisfy various needs of clients by developing differentiated and creative products with thorough safety testing procedures.

03. Brand Report – Design Concept New Design Styles with “Luxurious” and “Functional” Elements

Gold & Black Color Gold & Black Color

Suggesting the calm and trustworthy combination of black tone color and glamourous gold color suggesting unique and sensible style

Container implying love Like a Lovely tool

Symbolically emphasizing the dramatic images of Talent Cosmetics shown in the skin care containers based on human love and the make-up containers based on the generational motive

Graphic Invoking Imagination Luxurious& Prestigious Patterns

Crystal charm maximized by symbolically using the diamond which implies people‟s desire towards successful life and wants

03. Brand Report – Image

Luxurious, Stable, Lovely, Innovative, Generation Beauty, K-POP Star & Story, Dramatic Change

Gold meaning luxurious and glamourous women‟s fantasy or stimulating the longing

Differentiated from the others, sparkling and special charm

Based on the technology and experience, pursuing beauty that is functional, stable, and trustworthy

Global Happiness Global beauty that satisfies women all around the world

03. Brand Report – Target Cosmetics for the women of all generations A stylish lady with sensitive emotion who craves self-identity and new changes

Stylish, Innovative, Challenging, International, Adventurous, Interested in Make-up, Always Eager to Change, Seeking & Wanting Self-identity, Seeking & Wanting Attention

03. Brand Report – Positioning

03. Brand Report – Symbol Talent Cosmetic, The Story behind its Brand Symbol “Sunwoo Cosme “ originated from daughter‟s name and has the concept “lovely mother‟s lovely daughter.” It is a brand with family love. This brand has the vision that both pursues the generation and the world, a brand that a daughter and a mother can use together. “Levenne “ is a combination word of “Legend of Venus” and aims to express the legendary beauty of Venus, the goddess of beauty and love. “The brand that loves and respects women”

“Hui-Hwang “ is a Korean herbal medicine brand targeting the Chinese market. Its origin is to become a global cosmetic brand that spreads beautiful Korean skin care know-hows and traditional beauty.

To the moment when all women in the world become beautiful together…

The soon-to-be-launched “JAC Skin“, the dedicated brand, is in the process of codevelopment with the Japanese celebrity targeting SK-II. Luxurious and functional products will be The prestigious brand that will represent the Korean wave.

04. Why Talent ? - SWOT Strategy Marketing through SWOT Analysis Strength(강점)

Strategy

Strength-Opportunity (S-O) •

Opportunity (기회)

Halal-certified (1st in Korea) -Skin care and Make-up(30 types)

Hygiene Approval in China(30 types) - Expecting approval form July • Launching in Lotte duty free (Oct~ November)

Weakness-Opportuinity(W-O) •

•

•

New online business - Establishing online shopping mall - Online advertisement and sales Building mid low product line

Strength-Threat(S-T)

Weakness-Threat (W-T)

Intense survival of the small and medium industry -Inadequate price competitiveness

•

•

Threat (위협)

Weakness(약점)

•

Resettig of the organization and system

•

Insufficient target strategies to foreign market compared to large corporations (financial competitiveness)

•

Not enough Hit products

04. Why Talent ?- Marketing Channels Diverse Marketing Channels

TV Shopping in Korea

www.talentcosme.com 86shop in Taiwan

Local Stores in East Asia

04. Why Talent ?- HALAL Halal-certified by the JAKIM of Malaysia from 2014

MS2200 : 2008 1001-11 / 2013

What is Halal Certification? •

Halal in Arabic means “the allowed” and halal certification can only be achieved through strict and and rigorous assessment process covering from raw materials to production facilities.

•

Sunwoo Cosme of Talent Cosmetics was the first Korean cosmetic brand to become halalcertified.

•

There are 141 halal-certified products consisting of skincare, make-up, facial masks, and body care products.

HALAL Certification Process DOCUMENT APPROVAL > PREMISE INSPECTION / AUDIT > REPORT WRITING > ISSUANCE OF HALAL CERTIFICATE > MONITORING AND ENFORCEMENT

04. Why Talent ?- Products Full Line 300 Products Full Line (141 Halal Products are ready) Skin Care Lotion Toner Essence Cream Moisture Cream Eye Cream Ampoule

Sun/BB/CC Sun Cream BB Cream CC Cream

Make Up Powder Foundation Concealer Mascara Remover Eye Liner Eye Shadow Lip Stick/Gloss/Balm Cleansing Cleanser Foam Cleansing Peeling Soap

Mask Face Mask Eye Patch

Body/Hair Body Wash Body Lotion Hand Cream Shampoo

04. Why Talent ?- Star Marketing

F(x) - Amber

LPG

4 Minutes

Haruna Ai

Chosinsung(Super Nova)

04. Why Talent ?- Branches Branches in Myung-dong, Korea

04. Why Talent ?- Branches Branches in Itaewon, Korea

Branches in Taiwan

04. Why Talent ?- Branches Branches in Malaysia

04. Why Talent ?- Promotional Material Sponsored the International Super Model Competition in 2015

04. Why Talent ?- Promotional Material Home shopping channel in Malaysia

04. Why Talent ?- Advertisements

Media exposure (on MBC)

Celebrity product PPL

Chinese magazine exposure

04. Why Talent ?- Promotional Material Our products in Japanese magazines

04. Why Talent ?- Promotional Material International Rotary Club Competition in Kintex, Ilsan,2016

04. Why Talent ?- Promotional Material

05. –Marketing Target: Business Goal 2016 VISION

Definition of Success

Jump- Up 2016 !

Goal achieved in 2016, Sales Profit reached 10%

Distribution Channel Diversification

Strategic Direction

1)Online : SNS, Direct purchase from abroad

2)International business: more trading countries 3)Drug Store and others: Strategic expansion

Product Competitiveness Reinforcement 1)Strengthen different types of Make-up 2) Specialized development on the issued product 3)Brand rearrangement 4)Price competitiveness

Profit Structure Improvement

1) Cost rate improvement 2) Raise on cost efficiency 3)Stock consolidation/ SKU management

05. Marketing Target- Organization Chart

CEO

Sales/Marketing Department

Production/ Quality Control

Sales Dept.

Online Dept.

Design Dept.

Financial Dept.

International cooperation

Shopping mall management

Packaging planning

Accounting

Export/Trading

Promotion Marketing

Web design

Recruitment

Sales

Advertisement planning

Product development

Facility management

Product planning

Offline Store (1st Street in Myeongdong)

Offline store (Se-jong Hotel branch in Myeong-dong)

05. Marketing Target – Main Strategy

Product

Advertise ment

Promotion

Price

- Develop issue-making HIT products - Consumer’s trust on good quality acquired

- Establish unique brand image - Focus on the concept, product, model etc, (SNS reinforcement)

- A variety of events that will stimulate wants and needs - Opportunity on experiencing the brand, Focus on promotion

- Relatively high price strategy - Develop promotion products to raise brand awareness

05. Marketing Target – Management Strategy Tell the story on the "Dramatic changes” through Talent Cosmetics

Mega Hit Product

Best-selling products that will bring dramatic changes and visual effect

Story Telling

Fantasy will be delivered by story-telling products that will stimulate lovely and classy emotion

Only Talent

Its dramatic and luxurious products that can only be seen in Talent

High Quality

Creative design and quality that is not readily available in present cosmetics

05. Marketing Target – Product SKU Category

Types

No. of items

No. of types

Skin care

53

Facial mask

Distribution ratio (%) No. of items

No. of types

53

37

9

13

117

9

20

Cleanser

7

7

5

1

For men

2

2

1

0

Lip

6

53

4

9

make up

Eye

5

27

4

5

(360)

Nail

3

249

2

43

Base M/U

18

31

13

5

body & hair (4)

Body care

3

3

2

1

Hair

1

1

1

0

Perfume(4)

Shower cologne

4

4

3

1

Beauty soap

9

9

6

2

Make-up tools

18

18

13

3

142

574

100

100

skin care (179)

Others (27)

Total

05. 마케팅목표 - 상품전략 유형별 히트 육성 상품

60 second Elastic Cream Facial cream that improve skin texture and relieves wrinkles just in 60 seconds

Escargot Ampoule Cream 90.9% Provide high level of nutrients to skin with 90.9% snail secretion filtrate

Tension Diamond& Collagen Elastic Cream

Nourishing cream enriched with a variety of extracts that provide elasticity and nutrients to skin with the diamond powder that make skin‟s appearance glow

Crystal Dia Chic Stick

Vitamin & Q10 Essence Mask

With the airtight technology, this stick blusher minimizes powder floating and beautifully stays on your skin longer

Facial mask pack made with filament extracted from natural material provides deep moisture to your skin

05. Marketing Target – Ads/Promotion Strategy Magazine PR

Global PR Magazine PR

Reinforcement on advertorial

University newspaperPR

Article Ads.

University newspaperPR

Free newspaper PR

Promotion PR

Daily PR

Reinforcement on advertorial

Web/mobile PR

 Free newspaper-magazine PR

Contribution to society 17 · 19

· 21

· 23

· 25

· 27

· 29

· 31

·

33

(age)

[ Strategic Point ]

[Reinforcement Media]

□ Focus on media : effectiveness/efficiency UP

Beauty community/ SNS

□ Target media reinforcement : Consumer’s attention UP □ Early adopter PR reinforcement : Develop core consumer group

Magazines (advertorial) University newspaper (Advertorial) Magazine/ University newspaperBeauty co mmunity

Promotion PR Focus

 Daily PR Focus on product PR

 Web PR Community – Sample event

 Global PR Next global “Halal” search

05. 마케팅목표 - 채널전략

1st step

2nd step

3rd step

1st step

2nd step

3rd step

Online

MS About 8000 billions MS 1 trillion 2014

Duty Free Shop And Department Store

MS 2.5~2.7 trillion 2014

Drugstore

MS 5,000 billions in 2014 450 to 500 stores

Open markets and Social

Shinsegae/LOTTE/HYUNDAI/AK/

Commerce

Donwhwa /Silra ETC…

1st : Social commerce

1st : Duty Free Shop

1st : CJ Olive young(370stores)

2nd : Collaboration marketing

2nd : Department store

2nd : GS Watsons(80stores)

CJ/GS/LOTTE .. etc

비즈니스문의 Business

In Hwan. Yoo General Director

TEL. 82-2-775-1007

FAX. 82-2-771-7554

Tel : 82-70-4483-4502 Mobile : 82-10-3323-5687 E-mail : [email protected]

1004, 141-7, Toegye-ro, Jung-gu, Seoul, Korea