LABUAN FACULTY OF INTERNATIONAL FINANCE

FAKULTI KEWANGAN ANTARABANGSA LABUAN

JALAN SUNGAI PAGAR, 87000 FT. LABUAN
TEL (0): (+60)87-460486 / 466719

ACADEMIC SESSION II (2020/2021)

GT00603
INTRODUCTION TO INTERNATIONAL BUSINESS

INDIVIDUAL ASSIGNMENT

ADVERTISTMENT:

Mac Shot of Colour Lip Oil from YouTube

https://www.youtube.com/watch?v=ibJrppWPYBU

Name Matrics Number Programme

Agalya A/P Rajendren BG19110023 HE20
Analyse the advertisement

A. Describe the advertisement and identify the product attributes that is

emphasized or highlighted in the advert.

The advertisement that I analysed is about a beauty product from MAC Cosmetics. It
is originated from Toronto, Canada, and a subsidiary company of Estee Lauder Companies.
This advertisement introduces MAC Shot of Colour Lip Oil (Korea, 2019), which is 14 new
MAC's greatest lip colours, ranging from salmon pink to rose pink to classic crimson and deep
crimson, all with intense colour development and a sparkling oil shine. These lipsticks contain
dry oil, which gently absorbs into your lips and finishes a vibrant lip with a moisturising and
non-sticky oil. A clear lip-shaped glass at the bottom of the container gives it a MAC-like, tidy,
and elegant appearance. The colour of lip oil recognised and distinguished from the outside.
This shot of colour lip oil boasts a stronger and vibrant colour compared to their previous lip
oil. This advertisement helps the viewers to choose colours according to their colour tone and
taste that suits them.

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B. Describe the values expressed in the advert (are they universal or culture
specific) and explain how this is targeted specifically to appeal to the target
market segment in the chosen country. The explanation must be supported by the
information you found on the country’s environment.

MAC’s Shot of Colour Lip Oil is a universal product. There are 5 universal values used
by MAC Cosmetics which is artistry, individuality, community, trendsetting and social
responsibility. MAC have unrivalled expertise and skills in makeup ARTISTRY thus it is a leading
professional in the world. MAC Cosmetics is for all genders, all ages and all races as they
celebrate diversity and individuality. To bring customers visions to life they have a group of
professional makeup artist who work together and collaborate as a community. Collaborating
with top leading designers, artists and pop culture figures makes MAC at the vanguard of
fashion trendsetting. At the backstage of fashion weeks across the world MAC’s artists create
trends. VIVA GLAM is one of the projects which have the heart and spirit of distinctive and
unique culture as MAC believes in social responsibility.
The process of segmenting a company's whole client base into homogeneous groups
is known as market segmentation in such a way that management may devise distinctive
marketing strategies for each one a group. MAC segments and target markets based on
multiple criteria which is geography, demography, socio-cultural factors and psychological
factors.
Demographic segmentation can help MAC Cosmetic to target potential consumers
based on their income, ensuring that your marketing dollars are not wasted on those who
can't afford your goods. With references to age most of those in their twenties and thirties
are mostly a group of brand-oriented female shoppers. Meanwhile, the female shoppers in
their thirties and forties are price-oriented group and female shoppers in their twenties are
known to be information-oriented group. From this MAC know that female shoppers in their
thirties are divided into two groups which is price-oriented and brand-oriented as well. The
thirties age group shoppers do not have single-oriented shopping. Female shoppers in their
twenties also have more than one oriented group. There were no significant differences
regarding the references to occupation among these female shoppers. Based on the
occupation, less housewives belonged to the brand-oriented female shoppers compared to
employed or students (Hwang, 2004). MAC Cosmetic segmented the advertisement and
product according to the demographic of South Korea as they casted a Korean female artist
for their advertisement. The female cast appears to be in her twenties. This will attract the

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females around twenties to be tempted to try it on themselves. The target market from the
age twenty to thirty will be eager to try Shot of Colour Lip Oil.
Next, as we known the cosmetic market of South Korea is large. It is stated that total
cosmetics imports have fallen 3% every year on average since 2001, according to the Korean
Cosmetics Association's 2004 report. From the 95 largest cosmetic companies ,48 cosmetic
companies have entered the South Korean market. The penetration of the cosmetic companies
into the South Korean market is through international strategy which is wholly owned
subsidiary (WOS), joint venture, licensing, no entry and exporting. South Korean market have
a higher and larger direct sales coverage and specialty stores than the world average.
Meanwhile, the other large merchandisers and other channels are lower than the world
average. MAC Cosmetic will face difficulties on retailing cosmetics in South Korean Market
compared to other countries. MAC should step up their marketing by internalize high tacit.
When selling through salesperson-oriented channels, MAC Company requires a higher level of
local responsiveness and a stronger ownership structure of subsidiaries than when selling
through mass merchandisers (Chang Hoon Oh, 2006). The geographical environment of South
Korea tends to be a complex for MAC Cosmetic to grab the attention of South Korean.
Therefore, by doing an advertisement which produced from South Korea will help to boost
their product to be well known in South Korea.
Socio-culture is a sociological or cultural characteristic such as social class, stage in
the family life cycle, religion, race, nationality, values, beliefs, or practises is used to divide a
large product market into smaller subgroups. The cosmetic industry in Korea is the next
industry after music industry to gain a lot of popularity. Cosmetic industry is one of the largest
incomes in South Korea. The Korean Beauties inspired to have fair complexion of skin and
large eyes as the Western world. Culture wise they put a lot of pressure on appearance to
match the standard of South Korea appearance. Even, most girls pressure themselves in and
out of social media because that is the place where they know beautiful and pretty girls. The
beauty standards for Korean guys are not as high as for girls in general (Leonard Claire,
2019/2010). However, this is also slowly changing. As we know Korean pop idols wear lip tint
or lip gloss to have a plump and smooth lip texture. This is also what MAC’s Shot of Colour
Lip Oil also gives. MAC also targeting the male population in Korea by broadcasting and
producing a product where can be used by both female and male. This advertisement also
shows the 14 shades of lip oil in a glance for all the audience to catch a glimpse of it. The
shades have nice smooth and vibrant colours for both.
Psychographic segmentation is a marketing approach that uses customer data to build
client segments based on psychological traits. It is based on psychology. Excess and a

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seemingly self-assured relationship with their physical appearance are now hallmarks of
Korean women's and men's enthusiasm for all things linked to body aesthetics and its
trappings. South Korean have an obsession to have aesthetic appearance. South Korean are
passionate towards luxury items even in a poor fetishist psychopath's choice of a crime and
passion. The number one consumer of cosmetic products would be South Korean women.
They also take a longer period to perform their beauty rituals as well every morning and
evening apply five to nine beauty products on their skin (Gelézeau, 2015). This will be great
market for MAC to sell their Shot of Colour Lip Oil as the South Koreans are obsessed with
their appearance. As South Korean have fair skin the vibrant colour of the lip oil will give a
great compliment to their skin. Their skin will not look pale, and the lip oil will make their skin
to be glow and bright always. MAC’s product advertisement also has great backdrop, so the
lip oil is focused in the advertisement as well. As South Korean are crazy about their look this
product will make a huge contribution to their appearance to fresh and glows.
These market segmentations played a huge role for MAC Cosmetics to produce an
advertisement which complies with South Korean environment, age, income, lifestyle and
psychological traits. Furthermore, the product also was based on the South Korean’s taste as
well. This advertisement was made solely for the South Korean consumers and to target the
market in South Korea. This advertisement will boost the market as we know South Korean
always cautious about their appearance and use various products to look how they desire.

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Review your choice

A. Does the advertisement appeal to you personally? Explain why it does or does
not.

The advertisement does appeal to me personally. The female cast acted in the
advertisement was graceful in acting. The colour of the Shot of Colour Lip Oil really suits her
well. MAC Cosmetics chose the right female cast for their advertisement. Moreover, they
choose a cast who is a South Korean which really match with the target market. The
background music of the advertisement is not so extravagant or not so simple. It matches
with the duration of the advertisement. Furthermore, since it is a summer release product the
colours of the lip oils are warm and bright which matches the weather in South Korea. The
outfit worn by the model in the advertisement compliments all the colour lip oil shown. The
Shot of Colour Lip Oil advertisement was attractive and tempting. It makes me to rewatch it.
It makes me to be desired one of the collections which suits me. The focus on the lips of the
model in the advertisement makes me eager to have a fuller lip look by applying those shades
of lip oil shown. The moist texture of lip oil shows that it will keep our lips always to be moist
and not cracked.

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B. When you want to buy this type of product, what influences your decision?
Explain the attributes that are important to you when making a decision to
purchase this type of product. (10 marks)

When I want to buy this type of product there some attributes which is important and
influence my decision to purchase them. This advertisement is about lip oil or you can say lip
gloss as well. The lip gloss should be long lasting and stay on my lips for an extended duration.
It should at least stay for 5 hours; it may wipe of due to eating or drinking. Next, the lip gloss
that should have a good colour payoff. It should be a high pigmented shades lip gloss which
can go on with one or two swipes on our lip. The lip gloss should be opaque enough that I
will not end up applying many layers which is waste. This is a lip gloss therefore it should
have a creamy look. This lip oil should glide easily and applied effortlessly as it is made up of
oil, waxes and pigments. I personally apply lip oil or lip gloss for hydrating. The lip oil should
have a good balance of oil and wax. It should make our lip to be moist and does not dry out
in a short period of time. While wearing them I should not feel my lips dehydrating.
The lip oil should not be sticky. It should a good consistency. While speaking or giving
a presentation I should not feel my lips sticking or glued together which will be a huge
distraction. It should be easily reapplied as it can wear off after eating or drinking. A good lip
gloss can be reapplied by applying a thin layer back to look as before, It should be lip oil which
can be applied with ease and do not make mess all over my mouth. Scent of the lip oil also
plays a role to decide on buying it. The lip gloss should smell as good as it appears and looks.
It should not give out a plastic smell. If it does then the lip oil contains some chemical and
plastic. A hint of rose or vanilla smell should be enough and not too strong. The lip gloss most
importantly compliments my skin tone. There is no point on buying it does not suit my skin
tone. Advertisement can be deceiving us but the colour red suits all individuals. The lip gloss
should give a warm tone for my look. Last but not least, the lip gloss should be safe to use.
It should not contain any harmful ingredients. It should be enhancing our beauty and not
destroying it.

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Conclude by explaining whether or not this advertisement would be suitable to be
used in Malaysia. Base your explanation on suitability with Malaysia’s socio-
cultural and economic environment.

In my point of view, this advertisement will be suitable to be used in Malaysia. Malaysia

market is favourable to cosmetics products. The female workforce participation in Malaysia
have increased. Therefore, demand for the cosmetic products have increased as they wanted
to be more presentable which will boost their self-confidences. The working lifestyle of
Malaysian females is growing. Therefore, Korean beauty products are gaining a lot of attention
in our country. In Malaysia, youths are idolizing the Korean Pop music and drama. They adore
the fashion styles of the celebrities from their clothes, hairstyle and make up (Yeng, 2018).
The Korean pop music and dramas led to cosmetic products to be more appealing in our
country now. The youths in our country are imitating the culture of Korea be dressing up and
apply make up as their favourite celebrities. As Malaysians are following and adapting the
culture shown in the Korean music and drama this advertisement will bring positive support
from Malaysian. The advertisement also has an English subtitle as well for Korean non-
speakers. Furthermore, this advertisement does not have a lot of dialogues as it is more into
visual appearance.
Cosmetic products in Malaysia are sold through supermarkets, hypermarkets,
department stores and pharmacy. Malaysian are influenced by the heavy advertising,
promotion and marketing which increased their interest towards premium brands. MAC
Cosmetic is a premium brand as it is known worldwide. Malaysians are seeing cosmetics as a
necessity rather than luxury product. They are ready to pay high for their beauty products.
To enhance their youthful looks and appearance premium brands are purchased by Malaysian.
An uncommon discounts and promotion for premium brands influences Malaysian (Azmi
Hassali M*, 2015). Malaysia is a multi-racial country where local lifestyles are improving
sophistication and modernization. The consumption of imported products is increasing in our
country. To reach high class income country, Malaysia shifts their focus to high demand
sectors. Our country also allows the entry of new markets and brands such as Mary Kay into
the domestic market. Furthermore, the demand for beauty product will keep on increasing in
future since it is a huge demand for both males and females (Abdullah Swidi, 2010).

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REFERENCES
Abdullah Swidi, C. W.-H. (2010). The Mainstream Cosmetics Industry in Malaysia and The
Emergence, Growth, and Prospects of Halala Cosmetics. Retrieved from
https://core.ac.uk/download/pdf/19914475.pdf
Azmi Hassali M*, A.-T. S. (2015). Malaysian Cosmetic Market: Current and Future Prospects.
Pharmaceutical Regulatory Affairs 4: Open Access. Retrieved from
https://www.researchgate.net/publication/290185673_Malaysian_Cosmetic_Market_
Current_and_Future_Prospects
Chang Hoon Oh, A. M. (2006). Regional Multinationals and The Korean Cosmetics Industry.
1-34. Retrieved from
https://host.kelley.iu.edu/riharbau/RePEc/iuk/wpaper/bepp2007-11-oh-rugman.pdf
Gelézeau, V. (2015). The body, cosmetics and aesthetics in South Korea The emergence of a
field of research. 2-13. Retrieved from https://halshs.archives-ouvertes.fr/halshs-
01211686/document
Hwang, C. S. (2004). Segmentation of the Cosmetics Market according to Shopping
Orientation. Journal of the korean Society of Clothing and Textile Vol.28,No.12, 1632-
1643. Retrieved from
https://www.koreascience.or.kr/article/JAKO200430710461629.pdf
Korea, M. C. (2019, June 5). Mac Shot of Color Lip Oil (Video). Retrieved from
https://www.youtube.com/watch?v=ibJrppWPYBU
Leonard Claire, B. S. (2019/2010). Memoire - The Korean Beauty Industry: How does it affect
its Society? 4-32. Retrieved from
https://www.lem.lu/pdf/memoires/201920/BARONE,%20Siena;%20LEONARD,%20Cl
aire_(3CG)_The%20Korean%20Beauty%20Industry.pdf.pdf
Yeng, C. K. (2018). The Experiences of Malaysian Youth With Korean Cosmetic Product.
BERJAYA Journal of Services & Management, ISSN: 2289-568X, Vol. 9, 101-114.
Retrieved from https://journal.berjaya.edu.my/wp-content/uploads/2019/10/Jan-
2018_101-114.pdf