UNIVERSITY OF EASTERN PHILIPPINES

University Town, Northern Samar

Web:uep.edu.ph;email: uepnsofficial@gmail.com
COLLEGE OF BUSINESS ADMINISTRATION

STRATEGIC MANAGEMENT

(MWF 1:00-2:00 PM)

SUNNIES FACE

SUBMITTED BY:

Anonuevo, Abegail

Afundar, Angeline

Balagoplo, Rica Mae

Corong, Marjorie

Demeterio, Joyce Junneth

Mauno, Nikko

Parane, Maria Ella

SUBMITTED TO:

Udtujan, Darleen Joy

Professor
 SUNNIES FACE

Martine Ho, Founder+Creative Director of Sunnies face and Sunnies Studios

“I’ve always been very in between being American and Filipino. I was born in
Manila, where I live now, but my family moved to the United States when I was six. I
grew up in Orange County, California and later worked in LA.

I have always, always been into beauty. As a kid, I loved going to the
department store and painting my entire face. In high school, during career day, I
told everyone that I was going to have a beauty brand. Part of that came from seeing
my mom put makeup on, but also because my family has been in the entertainment
industry my whole life. In the Philippines my godmother was an actress, my aunt was
a beauty queen, and even my brother was an actor—he’s an interior designer now,
but I jokingly call him the Joey Tribbiani of my life.

SUNNIES FACE

"Beauty That Gets You"

Co-founders, Georgina Wilson, Bea Soriano-Dee, Eric Dee Jr and Jess Wilson.

Sunnies Studios began life in a humble eyewear shop in Glorietta 3, Makati

City in 2013. Ten years later, it is expanding the size of its first store and growing its
presence as a lifestyle brand. And so, in 2018, Sunnies Studios started to launched it
make up line, Sunnie Face.

According to the founder of Sunnies Face—Martine Ho, we started off with

just sunglasses through Sunnies Studios, and whenever we shot a Filipina in our
campaigns, it was always a struggle getting the right lip. Historically, Southeast
Asian women have been so underrepresented [in beauty]. There’s a subtlety to our
tones that companies didn’t get right—nudes looked ashy, for example. So, for our
campaigns I would mix these perfect lip colors on set using different lipsticks. When
people saw our campaigns, they were constantly asking, ‘What lip products did you
guys use?’ That's how our cosmetics brand Sunnies Face was born.

We tested over 300 different samples of colors for Fluffmate, our matte lipstick
and hero product. In the Philippines we are quite a melting pot, and we needed to
have colors that suited that entire spectrum. I remember I was so nervous to launch,
but when we did, the response was unlike anything I had ever imagined. I mean,
people were waiting for eight hours to get lipstick! We had put in an order that we
thought was going to last six months, and at the rate that people were buying, we
were going to run out in three weeks. We had to restrict the amount people could
buy because they were buying like 100 lipsticks and then reselling them for triple the
cost. It floored me. Even to this day, I'm like, ‘How did that happen? That was wild.’

Sunnies Face is participating in the beauty and personal care industry. The
Beauty and personal care market consist of products used for enhancing physical
appearance, hygiene and grooming. Examples of products in this industry are
suncare, skincare, hair care, color cosmetics, fragrances, toiletries and the likes.

The brand aims to create high-quality, inclusive, and affordable beauty

products that cater to the diverse skin tones of Asia. Sunnies Face is known for its
color-focused makeup essentials, including blushes, eyeshadows, brow products,
and lipsticks. The brand empowers people to embrace their individual beauty and
has a sleek and simple look. Sunnies Face has 15 store locations in the Philippines
and also ships internationally to some countries in Asia, Australia, and North
America. And so has accessible to consumers through distribution channels such as
drug stores, convenience stores, supermarkets, specialty stores and e-commerce
platforms like Shopee and Lazada. In the cosmetics industry, Sunnies Face has
become a trendsetter after receiving positive reviews from both customers and
beauty editors.

What is PESTEL analysis?

A PESTEL analysis is a tool that allows organizations to discover and

evaluate the factors that may affect the business in the present and in the future.

PESTEL is an acronym for Political, Economic, Social, Technological, Legal,

and Environment. This unit of analysis assesses these four external factors
concerning the business situation. The analysis examines opportunities and threats
arising from these four factors.

SUNNIES FACE (PESTEL analysis)

Political

 Import and export policies- Sunnies Face may face challenges in importing or
exporting cosmetics due to restrictions, customs procedures, or tariffs
imposed by the government. Changes in trade policies, such as free trade
agreements or protectionist measures, can impact the company's ability to
source raw materials or expand into new markets.

 Government regulations- The cosmetics industry in the Philippines is subject

to various regulations imposed by government agencies, such as the Food
 and Drug Administration (FDA) and the Department of Trade and Industry
(DTI). Sunnies Face must comply with these regulations regarding product
safety, labeling requirements, and advertising standards to ensure the quality
and legality of their products.

Economic

 Exchange rate fluctuations- Sunnies Face might face challenges due to

fluctuations in the value of the Philippine peso. This may have an impact on
the costs of importing materials from other countries. Thus, Sunnies Face
may deal with this through partnering with various suppliers, ensuring itself
from changes in the currency, and adjusting the price at which they offer their
products.

 Disposable income and purchasing power- As the Philippine and other

countries see economic growth, more people can now able to afford luxury
items such as cosmetics. Sunnies Face can benefit from this trend by offering
high-quality products at affordable prices and targeting the growing middle-
class market.

 Inflation and interest rates- If inflation and interest rates rise in the Philippines,
Sunnies Face may face challenges due to people buying less and higher
costs, which could result in an increase or decrease in the demand for
Sunnies Face products. Thus, Sunnies Face can cope with this situation by
offering value-added products and services, optimizing its operations and
cash flow, and seeking alternative financing options.

Social

 Consistently avoid using any animal-derived ingredients and clearly deliver its
commitment to a cruelty-free practices.

 Promote and produce products that are made with natural ingredients,
ensuring a sustainable practice for packaging and production.

 Ensure that there is inclusivity and diverse representation for ethnicities and
skin tones in their marketing campaigns.

 Actively engage with their audience on social media platforms and effectively
leverage influencers to reach target demographics and promote products
effectively.
Technological

 Utilization of Augmented Reality technology to provide personalization and

customization services.

 Strong digital presence to keep up with the latest trends in the beauty
industry.

 Integration of science, digitalization and technology in manufacturing and

distributing Sunnies face' cosmetic products.

 The global accessibility and convenience of e-commerce platforms for

purchasing make up and skin care products.

Environmental

 Environmental regulation- Avoid using plastics and waste disposal in terms of

packaging and productions process may cause for environmental
deterioration.

 Sustainability concerns- Growing consumer concerns about environmental

impact, Sunnie's Face must be adopting sustainable practices with their
manufacturing process, delivery, supply chain and packaging made of
sustainable materials to reduce energy consumption and greenhouse
emissions.

 Harmful Ingredients- Various elements of beauty products, consumer

concerned to the aggressiveness ingredients and synthetic chemicals may
affects to their skin and health. Sunnie's Face must ensure that their product
is free from dangerous chemical.

 Resource Scarcity- Scarcity of resources, such as water, herbs, plants,

minerals and energy could impact the production of beauty products. Sunnie's
Face can adopt practices that conserve resources and reduces their
environmental footprint.

Legal Factors

 Legal- Compliance with regulations related to product safety, labeling, and

advertising is crucial for Sunnies Face to avoid legal issues. Changes in laws
or regulations could impact the company's operations.