CHAPTER 3

THE COMPANY

3.1 Company Overview

The Alliance Cosmetic Group is a leading distributor of cosmetics and personal care products which was founded by Tan Thiam Hock in 1986 and is based in Shah Alam, Malaysia. Alliance Cosmetics Sdn Bhd distributes cosmetics and personal care products in Malaysia, Singpore, Brunei, and Indonesia. It also offers its own brand fragrances for men and women; and color cosmetics. The company offers its products through retail outlets and pharmacies in Malaysia; selected pharmacies, and personal care and departmental stores in Singapore; and selected personal care stores and departmental stores in Brunei. 

This company is the sole distributor of Revlon and other renowned global cosmetics brands in Malaysia, Singapore and Brunei. It is the largest retail mass-market color cosmetics brand in Malaysia, and the second largest company in the mass fragrance market. Alliance owns the popular Silky Girl brand, and distributes Revlon color cosmetics and hair color products in Malaysia, Singapore and Brunei.

3.2 Business Description

From a small shop lot in Sri Petaling, Alliance Cosmetics Group has spread all over Malaysia and Singapore. It staffs of 16 to 18 people has now grown to over 230 (95% of them women).Over the years, they have managed to expend their portfolio to include a range of cosmetics and body care products, including Revlon, Wet ‘n’ Wild, Avene, Elancyl and Silkygirl. Revlon Still remains their top brand and is labeled the premium of the mass – market brands, after L’Oreal. 

The Alliance Cosmetic Group launched SILKYGIRL in June 2005, adding new excitement to the landscape of colour cosmetics in the mass retail market. SILKYGIRL offers a complete range of high quality colour cosmetics that will meet the needs of discerning consumers in both the urban and suburban markets. SILKYGIRL’s brand personality is fun, young, colourful and exudes confidence. The core promise of the brand is delivered through the latest colour trend and high quality specifications of the products. 

SILKYGIRL is now marketed at over 1,000 cosmetics counters in Malaysia, Singapore, Brunei and Jakarta. In Malaysia, it is available at Guardian, Watsons, Parkson, Jusco, Sasa, Apex and other independent supermarkets and pharmacies. Following the success of SILKYGIRL color cosmetics, the Alliance Group launched its fragrance line in July 2006. Apart from introducing the SILKYGIRL women’s fragrances, the Alliance Cosmetic Group also introduced the Silky for Men fragrances; bringing on board Malaysian heartthrob Mawi into the Silky family. 

According to a report by Nielsen Company, in the year 2007/2008 SILKYGIRL had the number one share of voice and was ranked the number one colour cosmetics. “We are the most advertised brand, via sponsorships and pure advertising,” explains Tan who is the Alliance Cosmetic Group’s founder. 

In 2009, Alliance Cosmetics Group extended its line of products for women by introducing Stage cosmetics. A retail studio is available almost all across Malaysia and certain parts of Singapore to allow their customers to test out the Stage makeup kit for themselves. Customers can learn various techniques in applying makeup from Stage professional makeup consultants.

3.3 Company History

The Alliance Cosmetic Group is a leading distributor of cosmetics and personal care products which was founded by Tan Thiam Hock in 1986, Malaysia. Alliance Cosmetics Sdn Bhd distributes cosmetics and personal care products in Malaysia, Singpore, Brunei, and Indonesia. It also offers its own brand fragrances for men and women; and color cosmetics which is available in any retail outlets and pharmacies in Malaysia. This company specialized in some beauty products such as Revlon, Avene, Elancyl, Silky Girl, Silky, Make up Product, Eye Liner, cleanser, lipstick etc. 

One of their leading brands is SILKYGIRL which was launched in June, 2005. This brand is created for the discerning urban and suburban teenage girl from as young as 10 years old up to the age of 25. Capturing the teenage market is not an easy task as these Generation X and Y view themselves as individuals and not mere consumers; looking for a brand to personify their lifestyle. Alliance Companies Founder Tan expresses, his vision has always been to build the brand name in a brand association manner, lifestyle crafted and thematic. 

It is the sponsor of the annual national cheerleading competition, Star Cheer since the year 2007. SILKYGIRL brought Star Cheer, Malaysia’s premier inter-school cheerleading competition, to the small screen. Through the sponsorship SILKYGIRL aimed at communicating with parents that makeup can be associated with a healthy lifestyle and position their brand as the choice of teenage makeup. This brand’s mission is a fun, young and trendy brand of colour cosmetics that unleashes your confidence. SILKYGIRL aims are to help aspiring girls, women to look and feel good about and believe in themselves. In a nutshell, SILKYGIRL is here to help you Unleash Your Confidence. 

3.4 Key People

Name	Job Title	Board
Mr. Tan Thiam Hock	Ex CEO   Founder & Shareholder	Board Member
Mr. Chee Eng Ng	CEO	Executive Board

3.5 Location and Subsidiaries

Main Office:                            ALLIANCE COSMETICS SDN BHD

                                                                       

35, Jalan Pelukis U1/46, 

Temasya Industrial Park, 

40150 Shah Alam , 

Malaysia 

Website: www.silkycosmetics.com

Email: thtan@alliancecosmetics.com

Contact Number: 03-55694588

3.6 Brands, Major Products and Services

The Alliance Cosmetic Group is the owner of Silkygirl, Stage, SG Men and leading distributor for Avene, Elancyl and Revlon color cosmetics and personal care products in Malaysia.

This company’s main product lines include: 

1. 

Brand: Silkygirl & SG Men 

Product: SILKYGIRL cosmetics, SILKYGIRL fragrances, Silky for Men fragrances, Silky Lips lip care, Silky White face products, Silky Care feminine hygiene wash. 

2. 

Brand: Stage 

Product: Stage color cosmetics 

Leading Distributor: 

Avene, Elancyl and Revlon color 

3.7 Corporate Vision

To build the brand name in a brand association manner, lifestyle crafted and thematic. 

3.8 Corporate Mission 

The Alliance Cosmetic Group’s mission is to be the No. 1 cosmetics company in the ASEAN region, providing women the opportunity to look and feel good about themselves, irrespective of their ethnicity group and skin tone. 

3.9 Company’s Current Promotional Strategy 

TVC 

· Perfect Stay 20HR Eyeliner Promo TVC - 29th May, 2013 

· SILKYGIRL Exotic Flowers EDT TVC - 23rd May, 2013 

· Perfect Stay Eyeliner TVC – 8th May, 2013 

Website’s banner Ads 

· Promotional items about different product – 4th July,2013 

Contest 

· Cheerleader competition 2013 - Putra Indoor Stadium in Bukit Jalil, Kuala Lumpur on June 29th and 30th , 2013 

· BB to the RESCUE contest- 12th June – 14th July, 2013 

Silkygirl Road show 

· 20% DISCOUNTS on the selected Silkygirl products!

Valid until 03rd June 2013! 

Product launch event 

· SILKYGIRL perfume launched - November, 2012 

3.10 Product Sales’ History 

Private & confidential could not get in website. 

3.11 Current Marketing Objective 

Short Term 

· To focus on the Color cosmetic market 

· Alliance cosmetic group’s marketing plan aims to further publicize SILKYGIRL’s product line through extensive commercial advertising as well as to further add value to their existing product lines, introducing a new product line. 

· To increase customers’ satisfaction by giving promotional offers and maintaining good quality of products. 

Long Term 

· To be the No.1 cosmetics company in ASEAN region which is providing women opportunity to look and feel good of themselves without regardless ethnicity group or skin tone. 

· SILKYGIRL aims to help aspiring girls and women to look and feel good about and believe in themselves. In a nutshell, SILKYGIRL is here to help you Unleash Your Confidence! 

3.12 Media Expenditure 

In 2008, Alliance Cosmetic Sdn Bhd company’s founder & CEO Tan Thiam Hock had mentioned during the interview that, behind the success of Silkygirl brand is their regular appearance of activities and campaigns such as actively participating as a sponsor for some on-ground activities, as well as school extra-curricular activities like cheerleading competitions, musical campaigns and concerts. The company had also appointed several popular local and international singers, actors and actresses to be its brand ambassadors, namely Mawi, Sharifah Amani and Felicia Chin. The regular appearance (of its brand ambassadors) through all the activities and campaigns has strengthened the Silkygirl brand in the market, especially the young school girls market. Tan also said, the company would continue to be active in on-ground activities and maintain 8% to 10% of its budget for advertising expenditure to further grow its brand. 

Currently, they have spent a lot of money to change their website interface, advertising & promotional activities such as banner, contest, TVC, and free media such as the internet social network (Facebook) to get back customers’ attention since last few years their market situation was not that much good.