Slide 1

Summary of MOMO

OutlinePrefaceAn overview on the four development and features of Fubons marketing channels

AnalysisSWOT analysis of the four marketing channels of Fubon SWOT

OutlooksAnalysis and outline the new possible channels for development

EvaluationConclusion on Fubons marketing channels

The Development Process

Preface

TV ChannelsFubons TV advertising channel, MOMO was established in January, 2005. It is now shown in three individual blocks as a low-cost but profitable TV shopping channel. 20051Online Store and Catalogue shopping The online store and catalogue which are outlined with detailed product information, were established in May 2005 with the feature of 24-hour delivering services.2005524Franchise Pharmacists Fubon began its franchise business in January, 2008 in an attempt to provide the consumers with more professional and medical cosmetic and skin care products. Today the number of its franchise pharmacists has reached 26 stores. 2008126MOMO Department Store MOMOThe Asia World Shopping Centre was bought in August, 2009 with a 100 billion dollars investment and was rebranded into MOMO department store. This was leveraged to enter the market of Nanjing district, allowing the company to reach its consumers through physical channels.20098100MOMOMOMO

Marketing FeaturesFubon has developed four main marketing channels both virtually and physically at different point in time; the integration of both virtual and physical channels constitutes the basis of Fubons marketing approach.

Preface

StrengthsWeaknessesOne-go services, catering the needs of modern generation Clear outlines of operating procedures, product guarantee and terms and conditions. More convenient relative to physical stores (vs)Emphasize on efficiency and simplicity Higher risks of uncertainty due to limitations on product experience. Subsequent damage of brand image and business development. Too many local channels. MOMOs future development could be restricted. MOMO

OpportunitiesThreatsThe clout under the recommendation of industry experts. Allow different payment methods such as lay-by. Emphasize on the low-cost strategy as oppose to Eastern Broadcasting Co.(EBC) so to target a wider range of customers. (vs)Greater product selection than that of VIVA. VIVACorporation with the network providers to expand customer accessibility thus increase the reach in market . Products that lack the perceived quality may prompt consumer refund and a dwindling product credibility in the market MOMOs exaggerated promotion may damage the brand image MOMOIt is hard for MOMO to build a strong brand which is more renowned and far-reaching than Eastern Broadcasting Co. in a short time frame. Reputation The plan to conduct sales trials in China is subject to the political relations between China and Taiwan.

TV channelsa virtual platform for brand exposure and follow-up services.

Top left: the promotion campaign of mobile shopping co-developed by MOMO and other partners. MOMO. Right: video footage of the host of MOMO MOMO. Bottom: Scandal about a seller illicitly using the MOMO channel without permission MOMOAnalysis of existing channels

StrengthsWeaknessesInteractive way of showcasing the products and an organized product category Real-time update of product catalogue to ensure consumers are well-informed Key word search through a plethora of product information Low barriers of entry Consumers do not have physical access to the product before purchase

OpportunitiesThreatsReal-time update on promotions and discountsPromotional events and affiliated websites to drive brand exposure A more detailed website, showing company backgrounds, purchase and discount policies and consumer rights. :The lack of information security among credit card purchases Difficulties in locating the required ledger in all MOMO receiptsMOMO Consumers may find the website overwhelming as it contains too much information, both from MOMO and its competitors, vying for attention

online shopping

Online Shopping/Catalogue ShoppingMOMO, PC home, Yahoo, Pay easy

Analysis of existing channels

Catalogue shopping StrengthsWeaknessesThe convenience of delivering catalogue to consumers homeHaving little restriction on the time of product displayStandardized layout and product displayMonotonic product displayHigh costs for catalogue printingIt may be more time-consuming for consumers when looking up specific products OpportunitiesThreatsThe catalogue is suitable for housewives or consumers who are not particularly interested in electric appliances Catalogue is not updated frequentlyOrders of catalogue is cancelled if no recent purchases were made. Consumers are required to re-order itComparing with the catalogue of its main competitor, EBC, MOMOs is poor in quality, typesetting, and image display. MOMO also has no online catalogue. :

StrengthsWeaknessesExtending the advantage of virtual marketing, MOMO is launching a range of popular foreign(Japanese and Korean) cosmetic products at stores Being the exclusive agent locally to Import popular foreign skin care and cosmetic products from Japan and Korea Selling Kenkoukaisyas health products for 1/3 of the market price.Provide both physical access through stores and online shopping through virtual channelsOffering exclusive, seasonal deals at the international boutique section at the Ximending store on Wuchang St. momooutlet Constant offers of free gifts and/or exclusive sales deals Unlike its competitor, MOMO has no designer brand of its own.The number of stores is limited.The sizes of the stores are small; the display shelves also lacks in design.Failure to adapt to the recent market shift towards metro sexuality which is evident in its absence of male products.Having no pharmacists to provide consultation at stores Customer service staffs lack the experience.OpportunitiesThreatsMoving towards the business model of convenience storesSmall packaging of health supplements and medicines are favored by the modern generation of busy people.Having a majority of stores in residential areas which helps it cater to the needs of families. Many featured products are launched to increase the product differentiation and improve its comparative advantage Stiff competition in the market which may result in intense price competition if similar products are launched by its competitors Increasing number of comparable pharmacists such as SASA and TsuRuRu have flourished recently which leads to more competition Sasa

Franchise Pharmacists

StrengthsWeaknessesLocal Department Store less impacted by other competitions which leads to steady business growth 2. Having a similar vision and low-cost approach to that of TV channels The channel of physical stores is more reachable for customers With the geographical advantage, it can easily gain market share Targeting niche market makes it hard to appeal to the mass market.

OpportunitiesThreatsMaking the popular products from the online shopping channel available in pysical stores Having its own brands to attract MOMOs main target consumers Having a conssiten vision and marketing strategy with that of the TV shopping channel to deliver gifts and discounts in promtions Appealing to tourists .Comparing with other marketing channels, MOMO has fewer brand choices. Thus, the marketing message needs to be effective and straight to the point.

MOMO Department Store

current expansion plan on the two marketing channels of TV and physical stores

Analysis of existing channels

comparison on physical stores

MOMO

Watson

Cosmed

In the future

Comparison on products

In the future

MIT

:promotion strategy: product discount in the celebration of its 100th anniversary : Selected 100 products for the price of $100 TWD each in the stores of MOMOmomo 100Cosmed adopts the theme of Fun Reversed to launch new promotional campaigns A Watson campaign of 12% discount on products when pairing a red product with a green product88

In the future

MOMO() driving footfall with its superb location

Consumers ideal shopping choice due do its superb location Gaining market share through its regional dominance Respond to various market needs through its leading position in the niche market Situating at an area with high footfallWell-positioned to attract the flood of tourist after the deregulation in Chinas tourism industry In the future

MOMOstress the lifestyle of various market segments to meet the needs and shopping appetite of the consumers; consumer footfall and the distinctiveness of products are key factors in success :Low-cost market strategyOwn stalls under the name of corporation to analyze the market and position its brandExpand the brand of MOMO through online shopping channels MOMOMarket segmentation to maximize the effectiveness Myriad of promotional events which include gifts, discounts, and coupons In the future

MOMOHankyu Parent Company Fubon group President Chain Store Corp.Location Close to Taipei arena, Songshan airport, MRT station and hotelsTaipei City Hall Bus Station Market StrategyA white-collar department store A Japanese, office lady department store Market SegmentProfessionals and mainland tourist age 2540Young women among their 30s30Presentation Wide floor space and a bright presentation Various theme with different emphasis on fashion on each floorFloor Space3,000 ping3,0008,000 ping8,000Number of stalls100303Number of brands own930Market PriceLow-costLow-costEstimated Annual Revenue 1.2 Billion TWD124 Billion TWD40Market Buzz/Promotion events (gifts, discounts, lucky draws)Fashion on beauty and brand loyalty

MOMO comparison between MOMO and Hankyu department store

In the futureMOMO

MOMO comparison on the two department stores

In conclusionIn an attempt to counter the stagnant economy, the enthusiasm of consumer haggling, and the recent market frenzy of low-cost fashion, MOMO has delivered to the market distinctive products at a discounted price and unique gifts, increasing the differentiation of its brand to integrate the online market. It has a bright prospect ahead. MOMOMOMO is constantly investing in its expansion plan, in particularly at places with great tourist attention. It plans to have a second flagship store in Taichung, as well as another department store at the A10 area in Xingyi district in Taipei two years laterA102 (2013)momoMOMOs market trail will also deem beneficial to Fubons future expansion for the physical stores. This will aid its market presence and ambition.

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