Who or what is your target market - UHD-Team-C

Legacy Marketing Plan

UHD TEAM 3

Legacy

Team members/roles:

Sergio Jacobo – Marketing

Justin R. Jordan – Finance/Web Audit

Marquita Monique Joseph – Marketing/Research

Brody Allen Jungers – Finance

Hira S Khan – Presentation/Research/Marketing

Aaron Daniel Lindquist – Presentation/Marketing/Finance

Maria Del Socorro Lopez – Marketing

Alvin J. Mathew – Finance

Ryan Means – Web Audit/Presentation/Paper Editor

Cassandra Faye Millhouse – Research/Web Audit

Shelvie Danielle White – Marketing /Presentation

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Market Analysis

Who or what is your target market?

Our target market is working women ages 25-55, lighter skin tone

Can this market be segmented? How?

Yes, different races have different skin tones, and therefore require different varieties of makeup.

What is the profile of your targeted customers?

The profile is upper-middle class to wealthy customers; due to the expensive nature of the product.

What are the major uses of your product or service? In other words, what function does it provide for the customer? An important means of segmentation is based on use and not solely on demographics.

The product provides beauty enhancement, preventive skin care, sun protection, sensitive skin care, and on-the-go convenience.

For each major product/service application, what are the specific requirements by customers?

Mineral makeup knowledge, application techniques, and color matching,

What are the requirements (if any) of regulatory agencies? How are they fulfilled?

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FDA regulation – 2 main laws (Federal Food, Drug and Cosmetic Act and the Fair

Packaging and Labeling Act)

◦ http://www.fda.gov/Cosmetics/GuidanceComplianceRegulatoryInformation/ucm074

162.htm

2.

The FDA's legal authority over cosmetics is different from other products regulated by the agency, such as drugs, biologics, and medical devices. Cosmetic products and ingredients are not subject to FDA pre-market approval authority, with the exception of color additives. However, FDA may pursue enforcement action against dangerous products, or against firms or individuals who violate the law.

What are the buying habits of the potential customers?

Habitual mineral makeup users, purchase as needed for personal use, purchase as gifts for family and friends, bought upon referral from dermatologist/spas/clinics/health clubs, brush care

What will be the impact on the customers who use your product or service?

◦ Improved skin condition

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◦ longer lasting makeup

◦ easy to use/apply

◦ lightweight feel on skin

◦ natural looking beauty

◦ protection from UVA/UVB rays

◦ camouflages darks spots & aging

Economic benefits?

◦ Increased savings due to less skin care treatments (chemical peels, botox, surgery, etc)

◦ Decreased dermatologist visits

◦ Cancer costs

◦ Brush2Go mineral powder: 4-in-1 product value (foundation, sunscreen, concealer and finishing powder)

Will it change the way they do things?

◦ Yes. Using the product(s) should be habitual; used as a preventative measure. Easier and faster to apply because of product packaging.

Will they need to purchase other goods or services to utilize yours?

◦ It depends on the consumer. Depending on the amount of makeup that each consumer wears, they may be forced to buy additional makeup. Each product can be used as a stand-alone product and does not necessarily require the purchase of another good to be utilized.

Will they have to change their work or living habits to use yours?

◦ Yes but only slightly. The only real change to their living habits will come in the form of time required to apply the makeup daily. Daily use is a key factor for skin care protection and prevention.

Overall, how will you satisfy their needs or wants better than the choices presently offered in the marketplace?

◦ Compared to regular makeup

▪ better for the skin

▪ skin protection

▪ “wears” better than regular makeup – looks more natural and last longer

▪ pure mineral makeup – not an impostor, passes the “water” test

▪ better coverage, minimizes fine lines

▪ better for outdoor sports and activities

▪ hydrates and protects

◦ Compared to other mineral makeup

▪ Paraben free

▪ better price value

▪ higher quality – passes the “water” test

▪ easier and faster to apply

What share of the served available market (SAM) (mineral makeup competition) do you hope to capture?

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10% of the market

What are your market share objectives for the total available market (TAM)(cosmetic industry)?

1% (sales totaling $80 million).

What are the market trends? What factors affect it?

The market is trending towards “all-natural,” organic, health based makeup. It is affected by price in addition to the health and image benefits of the makeup.

Why do you think you can attain the given level of market penetration?

Beauty Cosmedics has a unique product offering, it is a higher quality product at a lower price that appeals to those with sensitive skin (market niche), in addition to being good for outdoor activities and sports, less time consuming, and longer lasting before reapplication is required.

How will the segments and applications of your market change over the next 3-5 years?

There will be an increase in minority consumers due to an expanded product line (better color matching and more shades). In addition, there will be an introduction of products targeted towards the relatively unexplored male market.

Competitive Analysis

Who are your nearest and largest major competitors?

Colorscience Mineral Makeup

Colorscience Mineral Makeup was created by Diane Ranger who is actually credited with inventing the mineral makeup concept (she was the creator of Bare Escentual's bareMinerals). Unlike traditional makeup, Colorescience products have been shown to have a positive effect on the actual condition of the skin. The micronized minerals used are naturally anti-inflammatory and uniquely formulated to protect and correct the skin. Colorescience utilizes state of the art nanotechnology to ensure the purity of its minerals. The botanicals used in Colorscience Mineral Makeup are organically grown and the makeup's core ingredients are high pharmaceutical grade.

Colorescience's concentrated loose powder formula coupled with their advanced "Genie bottle" applicator not only takes the mess out of mineral makeup but makes a little go a long way. Raves from celebrities such as Darryl Hannah, Natasha Richardson and Brittany Murphy along with notices in magazines like Allure, Redbook and Elle have brought Colorscience Mineral Makeup into the industry's spotlight.

From Colorscience:

The convenient super-goat bristle, retractable makeup brush releases just the right amount of pigment

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Legacy Marketing Plan for fool-proof application.

Apply coverage and SPF 20 with the ease of a brush stroke. Never heavy. Never cakey.

One product replaces foundation, concealer, powder and sun protection. Mineral makeup is NOT like traditional makeup and therefore cannot be applied the same way. Loose minerals look like a powder and feel like a cream. Highly pigmented, they give amazing coverage, but feel weightless as if you are wearing nothing at all.

Colorescience loose minerals come in a large variety of colors to be used as foundation, bronzers, correctors, finishing powders, blushers, and afterglows. With traditional makeup, you can get too much, too fast, creating a heavy look and feel. With Colorescience, it's okay to layer away!

Colorescience mineral makeup gives you radiant skin, as if backlit. Packed with good for your skin ingredients (no oils, talc, dyes or alcohols) and instant physical sun protection, your skin will look good now and for years to come. http://www.mineral-makeup-reviews.com/Colorscience-mineral-makeup.html

Bare Escentuals

In 1998 Leslie Blodgett first presented Bare Minerals Makeup on QVC and started the Mineral Makeup craze. It is the most popular and best selling mineral foundation. It is often misspelled as Bare

Essentials. Although the foundation and other original items have remain relatively unchanged, the line has expanded with new colors and products being constantly added.

Bare Escentuals has been breaking all the rules about makeup with the introduction of our revolutionary foundation called bareMinerals®.

This extraordinary beauty innovation is composed of 100% pure bareMinerals with no additives and zero irritants whatsoever. If you are less than impressed with the heavy, mask-like look and feel of traditional liquid and cream foundations, then bareMinerals is for you. Just say "No" to lines of demarcation forever. http://www.mineral-makeup-reviews.com/Bare-Escentuals.html

An experiment with a kit from BareEscentuals Bare Minerals that included three brushes and four loose powders: Mineral Veil , Bare Minerals Foundation in Medium Beige 2.3

, Bare Minerals Foundation in

Medium 3 , and Warmth . Boy, did I have a great time with these four pieces. These four products from

Bare Minerals allow me to conceal, camouflage, contour, highlight and control shine by buffing-on tiny amounts of these loose powders. The more you buff the better the finish. You can even put Warmth on your eyelids, accentuate eyebrows and add to lip balm as a lip color that lasts for hours.

Using the Bare Minerals kit takes a moment or two longer pressed mineral powder; however, the airbrush-like finish of the Bare Minerals is amazing. Because Bare Minerals are loose, there is a little bit of mess with the flyaway powder and the SPF is 15. There is a feel of versatility and superior finish in the kit which is worth a minute more of the time. http://www.socialimage.net/review_mineral_powders.html

Is their business steady, increasing, or decreasing? Why?

There is a new trend of mineral makeup because people are becoming obsessed with going green, saving the planet and using only natural products whether it in food, transportation, and materials. It is no surprise to see two of the most profitable makeup company to notice this trend and make profit from it. Thanks to their immense budget they are able to market more efficiently and effectively.

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A "new" makeup discovery that's been around for 30 years is taking the cosmetics, fashion and film industries by storm. Mineral makeup is the latest addition to an emerging beauty culture dedicated to better living. Unlike traditional products, mineral makeup, which is based on a hypoallergenic loose powder that naturally nourishes the skin, contains no perfumes, talc, alcohol, dyes, mineral oil or preservatives. Not surprisingly, dermatologists are pleased.

Bare Escentuals (Bare) is a US based cosmetics company and is a leader in the mineral-based cosmetic market. The company develops, markets, and sells cosmetics, skin care, and body care products under brands such as bareMinerals, bareVitamins, RareMinerals, i.d. and Bare Escentuals. The company sells skin care products under the md formulations brand. The company primarily operates in the US, but, also has presence in international markets such as the UK, Ireland, France, Germany and Japan. Bare

Escentuals is headquartered in San Francisco, California and employed 1,570 people on December

2007. The company recorded revenues of $511 million during the financial year (FY) ended December

2007, an increase of 29.5% over 2006. The increase in revenues in 2007 was due to growth in the sales of bareMinerals line of cosmetics, both domestically and abroad. The operating profit of the company was $169 million during FY2007, an increase of 21.8% over 2006. The net profit was $88.1 million in

FY2007, an increase of 75.4% over 2006 and is only increasing over the last four years.

How does your planned business compare to your competitors’ (strengths and weaknesses of each)?

Both Cosmedics and Colorescience will be competing head to head since both companies offer the same products and have the same technology to produce them. Bare Escentuals does not focus on producing customer value in their products; instead they focus on mass production to reach the mass market. This is because Bare Escentuals carries too many product types, which gives Cosmedics an opportunity to create greater customer value in their products.

The best mineral cosmetic product perceived to be on the market today is Colorescience .

All other make-up products are the norm in comparison to their offerings. Mineral makeup has become very popular and many companies try to make their mark to market and produce specific competition with the top products. One of the notable features of Colorescience mineral makeup is that the product offers protection from the sun. It offers both UVB and UVA protection, something that many skin products do not have. This mineral makeup is designed for all skin types and skin color. Because it breaks the light, it has the ability to cool the skin. Colorescience mineral makeup can last for more than a day so that the user receives the benefit of a single application. This product is advertised primarily on the ability to resist moisture, since it does not melt. Some women said that it also gives their skin a luminous look and feel. Colorescience mineral makeup is very popular with the makeup artist and fashion editors. Also dermatologists and anti-aging enthusiasts point out that this particular type of makeup is excellent for the skin. It is not just a cosmetic, but also treatment of minerals for the skin

Bare Escentuals (Bare) is a US based cosmetics company that is a leader in the mineral-based cosmetic market. The company develops, markets, and sells cosmetics, skin care, and body care products under brands such as bareMinerals, bareVitamins, RareMinerals, i.d. and Bare Escentuals.

What are the similarities/dissimilarities between your business and your competitors’ business?

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Colorescience utilizes state of the art nanotechnology to ensure the purity of its minerals. The convenient super-goat bristle, retractable makeup brush releases just the right amount of pigment for fool-proof application. One product replaces foundation, concealer, powder and sun protection. Highly pigmented, they give amazing coverage, but feel weightless as if you are wearing nothing at all. Packed with good for your skin ingredients (no oils, talc, dyes or alcohols) and instant physical sun protection, your skin will look good now and for years to come.

This extraordinary beauty innovation is composed of 100% pure bareMinerals with no additives and zero irritants whatsoever. These four products from Bare Minerals allow customers to conceal; camouflage, contour, highlight and control shine by buffing-on tiny amounts of these loose powders.

The most obvious difference in both these companies from Cosmedics is their budget. bareMinerals has an upper hand in conducting R&D for new shades of minerals, technology, and marketing through various media.

On what basis do you compete with them? Product? Price? Marketing/Promotion?

Technology/Innovation? Other?

Colorescience mineral makeup is considered a mineral makeup because it contains mineral pigments in concentrated form and without additives or oils, preservatives or dyes. Moreover, there is virtually no risk of allergic reaction, because the inert minerals do not support the growth of bacteria. If you have sensitive skin then Colorescience Mineral Make-up does not damage the skin. The minerals can act as an antiseptic that soothes the skin and keep it clean and help. While a solid product, we believe Cindy has produced a product that is of even higher quality than the offerings of competitors. If customers are serious about caring for their skin and desire the benefits of products based on minerals, then they should definitely choose to use Beauty Cosmedics products.

Competitive advantages:

Product o Improved skin condition o longer lasting makeup o easy to use/apply o lightweight feel on skin o natural looking beauty o protection from UVA/UVB rays o camouflages darks spots & aging

Compared to regular makeup

 better for the skin

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 skin protection

 “ wears” better than regular makeup – looks more natural and last longer

 pure mineral makeup – not an impostor, passes the “water” test

 better coverage, minimizes fine lines

 better for outdoor sports and activities

 hydrates and protects

In what respects is your business better? What is your distinctive competence? Operations?

Management? Product? Price? Service? Distribution? Other?

Compared to other mineral makeup



Paraben free

 better price value

 higher quality – passes the “water” test

 easier and faster to apply

What direct and indirect competition will you meet in each product/service line?

As stated, cosmetic products are an 80 billion dollar industry and there is an unbelievable amount of competition both directly and indirectly. The direct competition is Bare Minerals/Bare

Escentials cosmetics, whose products include mineral make-up, a Bare Minerals foundation line which provides a base for their other products such as; eye shadows, brow liners, and blush. RareMinerals which focuses on nighttime skin treatments in a mineral base and MD formulations for skin care products including cleansers and moisturizers. The indirect competition would be Colorscience which can mostly be found within spas, through medical professionals, and online. Some of their products include: Mineral powder face brushes which are retractable and refillable (foundation brush, corrector brush, bronzing brush, finishing brush, afterglow brush, and blush brush), Sun Reliable Primers, “Let me clear” collection which includes primers and spot covers, pressed mineral pigment compact, eye

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Legacy Marketing Plan products, lip products and sun protection. All of ColorScience products are free of dyes, talc, fillers, mineral oils, and other chemicals that are unhealthy for skin. Both of these companies are current leading competitors to Beauty Cosmedics.

How does your product/service compare with the competition in the eyes of the customer?

Based on the information we received from Cindy, her current customers state that her products in comparison with competitors exceed their expectations, and they love the way the make-up makes their skin feel over leading competitor’s make-up. The consumers or possible consumers of Beauty

Cosmedics cannot personally see or try on any of Beauty Cosmedics products before purchasing, which may turn away possible consumers. The process of having to purchase the item before knowing if it’s exactly what you want does not give the customer confidence that this product is worth the value/cost.

The other competitors give customers assurance by having products in stores, free samples available online at your convenience, and money-back guarantees that you will be satisfied with your purchase.

Also, the Beauty Cosmedics product line for ethnic customers lacks the amount of colors and shades needed to satisfy non-white demographics, whereas competitors have multiple shades available that cater to many races.

What do you know about other potential competitors (new entrants) not yet in the marketplace?

What barriers to entry are there?

Potential competitors would be RAW Natural Minerals a fairly new mineral product line as of

March 2010 offering Paraben and Petrochemical free mineral make-up, which includes botanical extracts to give customers younger looking skin. The products they offer include mineral foundation, mineral glow, and SPF 18 active veil. To appeal to customers they are offering a free 30-day trial to use their product, meaning if you don’t like the product then you can return it at no cost, but if you decide

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Legacy Marketing Plan to keep it they charge you the full price of the products. Another potential competitor would be Pür

Minerals, which also specializes in 4 in 1 pressed mineral foundation make-up which caters to all skin tones, ages, and skin types. They offer similar products to Beauty Cosmedics that are also made with all natural ingredients. The barrier these new entrants face within the cosmetics industry will be the same as those Beauty Cosmedics is facing, which is getting recognition and customer awareness for your brand and products. When consumers have never heard of your products and there is no celebrity sponsoring/wearing your brand, consumers are less likely to explore what you have to offer. While cosmetics is a never-ending industry, during these hard times consumers go with the brands advertised the most and ones they know and trust.

Do you threaten the major strategic objectives of the competition? If so, how will they respond?

How will you respond?

Yes, because not only is Beauty Cosmedics offering some of the same products as their competitors, but all of the products we’re offering are paraben-free and cater to people with sensitive skin. Similar to its competitor Bare Escentials, Beauty Cosmedics also provides products that focus on skin problems such as Rosacea and Acne. Its other competitor Colorscience focuses on skin conditions as well but caters mostly to medical facilities and resort spas. Beauty Cosmedics offers some of the same products for a more reasonable price to consumers; once the brand is built up it will definitely threaten the objectives of its competitors. The competitors would respond by possibly lowering their prices to compete with Beauty Cosmedics, or they might even try advertising a different type of differentiation in their products.

What do you know about how the competition operates? Their Strategies?

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Bare Escentials operates by marketing its products through the home shopping network QVC, direct-response infomercials, prestige retail outlets such as Nordstrom and Macy’s, in more than threehundred Sephora and Ulta stores, nine-hundred spas and salons nationwide, and it also owns and operates more than thirty-three retail boutiques. Bare Escentials has directed their infomercials to all ages, skin types, and skin tones, making their products easy for anyone to find a matching product to fit their needs. Their particular strategy has been to focus on health-focused cosmetics since this of greater interest to women. Another strategy used by Bare Escentials was to give their consumers as much information as they possible could about mineral make-up, so Leslie Blodgett wrote a book called

“What Hollywood Could Learn From Us”, which answers frequent questions posed by consumers about the mineral make-up application.

ColoreScience operates by marketing its products through medical professionals, resort spas, and online sales. Their marketing tagline is “Colores. Corrects. Protects.”, which targets people with damaged skin all the way to great skin. The products are formulated to provide consumers with satisfaction and to make them proud of their skin again. Not only providing the mineral based products, but going above and beyond to provide items such as

Colorescience Line Tamer Skin Brightener’s yellow mousse formula claims to be a “Non-surgical Dermal Filler for Lines and

Wrinkles

” by infusing skin with anti-oxidants, as well as beta-carotene and vitamin E to nourish the skin. Praising of products which has provided tremendous marketing has been in magazines such as Glamour, InStyle, Good

Housekeeping, Allure, Spa, Parents, Real Simple, Bridal Guide, People, OK, and the list goes on.

Colorescience is obviously no stranger to the make-up industry and the company capitalizes on being well-known for its products concern for all skin types. Their strategy is continued clientele through medical professionals and spa resorts, places frequented by people who are extremely concerned about the well-being of their skin.

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Market Strategy

1.

What geographic market area do you now cover? What markets do you intend to cover in the future?

Currently Beauty Cosmedics covers the entire United States with its website, but it has no retail locations, and exerts no real control or influence in any geographic area. We still intend to sell to the entire U.S. geographically by creating a new buzz about the products and gaining company recognition.

2.

What is the sales appeal of your product/service, i.e., why do people buy it?

The sales appeal of Beauty Cosmedics is that it is better than any other premium mineral powder. People buy Beauty Cosmedics because as increased scrutiny is being placed on skincare ingredients, natural and organic products have become more popular, including, most recently, mineral make-up. According to Jane Iredale, who launched her eponymous cosmetics company in 1994. “Mineral make-up is made of the purest inert ingredients that don’t contain harmful irritants. There are no synthetic dyes, talc, parabens, preservatives or fragrances included, so it is ideal for those who are acne-prone or who have just had cosmetic surgery.

Certain minerals have skincare benefits, too, and are much kinder to the complexion in the short and long term.” Calcium and magnesium are said to strengthen collagen, for example; titanium dioxide and zinc oxide offer natural sun protection; and mica and calcite have an illuminating effect.

3.

What is special or unique about your product/service “package”?

Beauty Cosmedics has a Brush2Go premium mineral powder that comes in a self-dispensing, ultra-soft refillable brush that is mess-free, quick & easy application, travel-friendly and available in mess-free canisters. The formula for Brush2Go is SPF20 that has a more natural look (not shiny, better coverage, minimized fine lines, better for outdoor sports or activities and has a 4-in-1 (foundation, sunscreen, concealer & finishing powder.

4.

On what basis will you attract and maintain your market? How will you expand it?

Beauty Cosmedics will attract and maintain the market by offering a better product or service than their competitors , sell a less expensive product or service than their c ompetitors , and o ffer customer service that is superior to that of their competitors.

Beauty Cosmedics will expand their market by making their web pages more engaging towards customers. Beauty Cosmedics not only expand their market potential by making the pages more accessible to more people, but make the pages more search engine friendly to increase traffic to the website.

5.

What are your marketing priorities among segments and applications?

Beauty Cosmedics marketing priorities among segments and applications focus on reaching out to new consumer groups. One of the most recent areas for innovation is within the ethnic niche.

In the US, the largest market for color cosmetics, Hispanics, African-Americans and Asians

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Legacy Marketing Plan account for around a third of the population and their numbers are growing at more than twice the rate of the population as a whole. It is, therefore, no surprise that they are becoming a target for new color cosmetics launches. Beauty Cosmedics must be empowered to work independently of IT in order to achieve aggressive time-to-customer goals.

6.

Who makes the purchasing decisions, and how will you reach them?

The consumer makes the purchasing decision by making choices about which products and services to buy. Beauty Cosmedics can reach consumers thru: Mass media: direct mail, email,

Internet (social media and blogs) Display: location, building, signing, window/ counter/shelf display, environment, printed materials, web sites One-on-one: in person, by letter, email, telephone. Follow-up after the sale: in person, by letter, email, telephone. Indirectly through someone else who made their opinion abou t who is doing the offering and w hat is being offered from the above sources or from another party.

7.

What intensity of selling effort will be required?

Beauty Cosmedics intensity of selling effort required will be to create a high intensity, highly focused promotional event around something “new” at least four to eight times a year in your market, not just for the direct surge of new customers or sales for a new product, but for attention, interest, prominence and “buzz.”

8.

How will you sell? In-house salesmen? Manufacturer representative? Other?

Beauty Cosmedics will sell to spas/doctors/clinics, sell online via the company website, and eventually utilize an outside sales force that will work on comission.

9.

What advertising approaches will you use?

Beauty Cosmedics will use the following advertising approaches: Press kit sent to local periodicals – newspaper/magazines which can be delivered to your home or online, Internet which can take advantage of various advertising methods – social media and blog; product giveaways to local celebrities, athletes, beauty pageants, free samples at spas/Dr's office/clinics.

10.

What promotional strategies will you use, e.g. trade shows, demos, etc.

Beauty Cosmedics will use the following promotional strategies: brochures in the spas/Dr's offices, online newsletter, flyers, social media, giveaways, and coupons for early adopters

11.

On what basis will you evaluate the effectiveness of your advertising/promotions?

Beauty Cosmedics will evaluate the effectiveness of advertising/promotions by measuring sales, increased web traffic – additional hits to website/social media, referred clients, online buzz – word of mouth via blogs/etc,

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12.

How large will your customer’s average order be? Dollars? Units?

Beauty Cosmedics customer’s average order of $75 or more will receive FREE STANDARD

SHIPPING Most orders are processed and shipped within 1-2 business days. No International addresses will be shipped at this time; however, a customer can email international orders & inquiries at customerservice@beautycosmedics.com

13.

How frequently do customers order?

Our on-line customers will most likely order every 90 days due to the fact that there is a need to refill the makeup products (the life-cycle of skin is 90 days – once results are proven, customers will re-order), our Sephora stores will likely order every 30 days, and the Spas may order more frequently (such as weekly) due to demand for specific products. We will entice them with our promotions and special offers on products likely close to expiring.

14.

What do we expect the sales cycle for the product to be? Discuss Bucket Reports and important stages.

The sales cycle for our products will vary depending on the product. The cycle will likely be every 60 days between all of the customers that we are servicing (on-line, Sephora, and spas/doctors). The bucket reports can print both detail and summary information about all customers’ current and past due invoices, debit memos, and chargeback’s. Receivables also give the option to see credit memos, on-account credits, unidentified payments, and on-account and unapplied cash amounts. The most important in the grouping are current and past due invoices.

We plan to stay on top of these because without them we will not be paid. Remember cash is

King!

15.

What are the yearly sales milestones for the next 3-5 years?

Within the next 3 years, our sales will likely increase by 30%; then 50% by year 4, and 75% by year 5. This will be accomplished with various promotions that will be run by company. We plan to do outreach marketing so that many customers that are unaware of the products can verify what is in all of the products that they are using, such as parabins, fragrances, glucose, etc. Once the market has the information they need about skin care as a whole, our products will be their number 1 choice. This will only increase as the years go forth. When we asked Cindy how important her doctor’s recommendation for products was, she said very important. As we move to the different territories of the pharmaceutical reps that cover Texas, then Louisiana within 3 years, customers just like Cindy who have searched for the right product will buy from us.

16.

What is the pricing strategy? Margins? What basis are prices set?

We will first set our prices based on cost and market niche. The products that we have are exclusive, and to know and believe in this fact, we must sell with the expectation of higher margins. Since we have chosen to place products in spas and with Sephora, we must not go too high; although with the knowledge that our products will be sitting next to that of imitations

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(such as Bare Minerals) we must be priced higher than they are. Once our customer base uses these products and sees incredible results after 90 days they will understand the price difference. The T-G-O product will be like no other, and some men are willing to send their wives to the store to get whatever works best for them. Sunscreen is important, even on cloudy days, so once the customers are educated on the health benefits of these products, they will become price inelastic.

17.

How will the pricing policies change over time?

The beauty and make-up market has resided and strived for a very long time; although the mineral market is new. As you may know, though, not all of the products that we have are make-up. The pricing policies of these items will only change due to demand. If the demand increases, we may look at changing prices at an increase, but the prices will not decrease. We have an exclusive set of products that no one else may be able to duplicate, we must charge for this.

18.

What will the discount policy be? The dealer pricing program?

The only discounts that we will offer are: based on large order quantity, referrals, and customer coupons for loyal customers for 1 year (placing at lease 4 orders for the last year). Since dealers will likely order larger quantities, they will receive the discount equal to that of a customer unless some type of contract is put in place. The contracts that we have with Sephora and the

Spas are exclusive prices for them, but they are not able to sell anything below the prices that are on-line and in the doctor’s offices. This is to prevent any customers from price discrimination.

19.

How may the competition respond to our marketing strategies? Marketing? Pricing?

The competition may come up with a more expensive marketing tool to use because we may not be able to afford that route, but once we engage some PSA’s on TV, and some books are put out that explain good, healthy skin care, they will no longer be able to compete. The pricing strategies, we do not plan to compete on. It is a weak endeavor to compete on price, because it devalues the product, and since we have an exclusive set of products we will not compete on price. If they want to drop their prices to undercut the Beauty Cosmedics, then we will really have to push the superiority of our product. Competing on price only is not a viable option for

Beauty Cosmedics.

20.

How will packaging and labeling enhance name ID? Brand loyalty? Marketing Strategy?

We plan to roll out T-G-O for men and women and dedicate the marketing to the darker skin tones and ethnic groups, so the bold red and black that we have chosen will stand out among the competition. When the customers go online to look for an easy, waste-free container, and can order it for the whole household, the customer will be pleased. Some packaging will be recyclable, depending on what is ordered, and the fact that none of the product used will be wasted allows the customer to know that they are getting their money’s worth. These things will enhance brand loyalty and the name ID. The marketing strategy is to promote healthy skin and

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Legacy Marketing Plan to promote the health benefits of the product. The packaging will have all ingredients included in the products and will allow consumers that are buying from spas, doctors, and Sephora to compare the brands to the others in the store. Our customers and others that care about their skin will make the smart decision.

21.

What to accomplish- the plan of action for being successful in the market. Internally and

Media Utilization?

To be successful in the market, we must rise above the competition with a superior skin care product and create brand loyalty among our customer base. Our internal policies will contribute to that success by all of the employees and representatives that hold our products having the best customer service. We will not stock, sell, or even have our products mentioned by anyone that does not put the customer first. We will offer 100% money back guarantee if the customer is not satisfied (statistics show that only 5% of customers actually return anything regardless if they are happy or not). When using the media, we must be careful to not say anything that is remotely untrue. We will be careful to back up everything that is said on-line, in magazines, on

TV, and other areas that we plan to utilize. Since health is so important, many consumers are price inelastic when it comes to taking care of their bodies and appearance, so this is the most important area of the market strategy. Then later we will talk about how all of our products play a large part in the place that the skin is most exposed to the sun, the face. We will explain that a simple daily moisturizer (for men and women) will help protect them without taking much time to apply.

16


Appendix

Competitor Information

The top-selling Colorescience products for men include:

Sunforgettable : Sun protection relies on the refractive properties of micronized titanium dioxide and zinc oxide. The clear, weightless powder does not rub off on clothes. It is safe, odor free, clear on the skin and will not burn the eyes when perspiring. Great for brushing on while golfing, working outdoors or for every day use.

Brow Fixation : For those untamable man-brows, Brow Fixation helps shape up, hold still, straighten out and set apart hard to manage eye-brow hairs. The cooling brow gel is formulated with a special coplymer.

Line Tmer : Instantly, Oat Beta Glucan plumps cells and stimulates collagen production, reducing the appearnace of wrinkles. Long-term benefits include a 70% reduction in redness. Skin brightening pale yellow coloration helps soothe stressed skin after exfoliating or shaving.

Wild to Mild : Homogenizes the appearance of pigmented skin. Men will see a tanned tint without the sparkle of most powder bronzers or the orange look of self tanners. Patented Rice Peptides soothe burns and prevent the breakdown of collagen. Blue algae extract, Vitamin E and Beta-carotene hydrate the skin.

Invisibly Matte Powder : Loose mineral powder goes on clear and contains a rice starch – the most oil absorbing active – to keep skin from looking to shiny or oily. Mattifies and protects all skin tones.

Baby Blue Eyes Pencil : For men in the spotlight, on TV or in public speaking, lining the inside of the eye with Baby Blue Eyes eye pencil makes the white of the eyes look whiter, bigger and more awake.

Men and Makeup? You Bet!

Today’s man may not carry a makeup bag but you’ll probably find a handful of skin care products in his shaving kit. That’s because he’s wise to their benefits. Now, he’s discovering the discreet charm of mineral cosmetics. Colorscience offers a group of products that double as grooming aids for men, by masking ruddiness, improving skin texture and just plain ol’ goosing mother nature.

“You don’t have to be a metrosexual to appreciate the need for SPF coverage or products that will help prevent aging,” says mineral maven Diane Ranger, President and founder of Colorescience. “Some of our most loyal customers are men.”

Colorescience Creates Photo Finish Makeup for Brides

On one of the most important days of their lives, brides depend on Colorescience to make them beautiful; because micronized mineral makeup reflects the light so that colore seems to come from within, softening features and giving skin a youthful glow. Moreover, Colorescience minerals act as a

17

Legacy Marketing Plan natural SPF 20, so brides don’t’ have to slather on lotion above or below their makeup of they are heading outdoors to snap photos.

“Brides are thrilled with the staying power of our makeup on their wedding day,” explains president and founder Diane Ranger. “ Colorescience is perfect for any skin type – since minerals balance oil in the skin and also seal in moisture, helping to soothe dry skin problems.”

Colorescience top sellers for brides include:

Finishing Brush - long lasting, Colorescience soft-focus finishing powders give a smooth, matte finish.

Sheerly Irresistible – just a hint of colore and a smidge of cover. Contains a patented pigment to control colore changed in any lighting: from fluorescent to outdoors, even the flash of a camera.

Invisibly Matte – perfectly clear powder. It mattifies! It’s used to mattify & protect all skin tones, particularly women of color.

Snow Leopard – a touch of lavender to create soft-focus, innocent-looking skin. Flatters skin under the eye of the camera.

Lip Polish – for kiss-proof lips. 8-12 hours of colore, no feathering and won’t kiss off! It is colored with mineral pigment, no dyes. It feels as if you are wearing nothing at all.

Bed of Roses Lip Pencil – softly wearable rose.

Tear-Proof Eyes

Cry Me A River Mascara – a body building waterproof mascara that washes off with cleanser and water. No harsh chemicals. Enriched with wheat germ to promote curl.

A Fine Line Eyeliner Sealer – used to waterproof and tear proof any liner either pencil or powder. Can be used to turn any shadow into a liquid liner.

Touch-ups in a Flash

Suncanny Travel Puff – the pigment is in the puff! This luxurious puff provides amazing coverage and sun protection. It lasts up to 20 applications. Throw it in you bridal purse for the reception!

Sunless Tan Collection

Keep That Summer Tan All Year Long!

Whether you are spending a day at the beach, poolside, or if you want to prolong your summer tan,

Colorescience Sunless Tanning products are for you!

Colorescience Sunless Tan products offer many superior alternatives to tanning beds, are streak free and can “even out” other sunless tan procedures.

Deception Finger Face Paint gives an amazing sheen and a fabulous bronzed glow to the face, chest, arms, legs and hair. It moisturizes while it enhances the colore of your skin.

Tip : Make Your Own Liquid Sunshine! Pour approximately one fourth of your Afterglow or Bronzer pigment into half a bottle of Achromatherapy Gem Sprtizer. Shake and “spray on a tan, a glow and sun protection.”

Get a beautiful bronzed glow with these “tanfastic” products:

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Wild to Mild Skin Bronzer for a smooth-on tan. This velvety smooth cream-to-powder leaves the skin feeling incredibly smooth and looking slightly tanned. This unique colore blends beautifully on most skin tones, from very light to very dark. Use this daily on the face or on the body for special occasions.

Use it to smooth out streaks left behind by other sunless tan products. A great after-sun skin soother,

Wild to Mild contains patented rice peptides, an ingredient used in burn centers to calm burned skin.

Kissed by the Sun Mineral Bronzer comes in a convenient brush-on applicator to give a twenty-four hour brush on tan. Thanks to micronized titanium dioxide and zinc, it protects your skin with an SPF 20 physical sun protection. Quickly and easily apply our mineral bronzers to your face and/or body.

Kissed by the Sun is the most popular colore, but there are many other great choices. Ask your

Colorescientist to choose the best colore for you today.

The Painted Dessert Afterglow Brush-On Face & Body Powder is a wonderful way to add a bronzed sparkle to the neck, legs, shoulders, and arms to get an instant glisten to your skin. This copper pigment is infused with gold sparkles. Use to highlight the cheeks, lips, and eyes.

“Eye Catching” Mineral Makeup

We express ourselves with our eyes. People look at eyes, trying to understand every raised brow and twinkle of excitement. A telling glance. A sexy stare. Bring your inner beauty out to play…

Great products and basic application techniques, combined with classic colore theory, can produce dramatic results in the way you look. Colorescience eye products were created with sensitive eyes in mind, yet beautiful results were not sacrificed.

Learn how to add that extra little sparkle and be among the first to experience the latest collection from

Colorescience Mineral Makeup.

Its’ All In The Eyes.

Colorescience “eye catching” products:

A Fine Line – Use to “waterproof” any liner product, or use with any Genie Colore to make an infinite variety of liquid liner colores. Also use with Brow Kit to “paint on” believable brows.

Cry Me a River Waterproof Mascara – A unique, “easy on the eyes” formula that is water-based, yet is long lasting… swim, cry or weather a cold. Easy to remove and easy to wear. Promotes curl. Each lash is coated and protected.

Genie Colore – 100% loose minerals, pure pigment. No talc. No dyes. Highlight the brow arch with a light shade in the peak of the arch. Define & darken the lash line alone, or layer over to set an Eye

Pencil or Smudge It. Called the magic genie because the colore is practically endless!

Get Framed Brow Kit – Mirrored compact comes with three brow/eye colores to take you anywhere you want to go. Pressed mineral pigment is concentrated and can be used for brow, shadow or liner.

Use dry or with “A Fine Line” to draw on brow hair.

Baby Blue Eyes Pencil – Natural mineral pigment gives you long-lasting, long-wearing colore. Soft enough to easily glide on, yet firm enough to create definition. Use baby Blue Eyes inside the bottom eyelid to make the white of the eyes look whiter.

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Colorescience Stands Up To HDTV’s Unforgiving Eye

With the development of HDTV – which shows pictures nearly five times as sharp as a regular set – industry makeup artists are up against technology that reveals every flaw. Scrambling for makeup that welcomes a close-up, experts are turning to Colorescience Mineral Makeup; because it looks better the closer you get it.

“Mineral makeup reflects that light, causing a soft-focus filter effect. It softens sallow undertones and evens out redness,” explains Diane Ranger. president and founder.

Celebrity makeup artist Steve Sollito relies on Colorescience Finishing Brushes when he is prepping clients like Christina Aguilera, Tara Reid and Ashton Kutcher for photo shoots. “They have a smooth, matte finish and can cover blemishes without drawing attention to them.”

High-Definition TV Demands High Performance Makeup

Colorescience products that top makeup artists crave are:

• Colorescience Lip Polish – indelible, never smears, never fades.

•

Cry Me a River Waterproof Mascara – absolutely no flaking; hydrolyzed wheat protein promotes a natural curl; won’t sweat or cry off.

• Per fekt’ Foundation Powder – an apricot tone that conceals redness, covers dark circles and hyperpigmentation.

•

Snow Leopard Finishing Powder – a lavender powder that acts as a rose filter, softens features and mattifies.

• Sheerly Irreistible Finishing Powder – contains a patented iron oxide ingredient that works well in all types of lighting: fluorescent, outdoor, etc

Teens get Their Mineral Daily Requirement with Colorescience Makeup

On top of acneic and hormonal teenage skin, piling on makeup can cause, like, major problems. Some products are comedogenic, causing clogged pores; while makeup fillers, colors, scents and preservatives can often cause skin irritation and redness, further exacerbating a condition like rosacea or acne. Colorescience Mineral Makeup, however, lets teens feel confident that their makeup won’t make their skin worse, in fact minerals can make it better.

Mineral makeup by Colorescience is a natural anti-inflammatory, a natural anti-septic and does not cause acne because minerals are not absorbed into the skin. Plus, minerals reflect the light and soften features for Homecoming and winter formal photos.

The top-selling teen products from Colorescience include:

Genie Colore eye shadows are concentrated amounts of loose mineral pigments that also double as a liner. Teens can get true pigment without multiple applications. Called “Genies” because they never seem to run out! Available in 33 shades!

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Turn the Tides Blemish Serum – help cyst-like blemishes disappear in as little as 4 hours! Liquid

Crystals in fused with aromatherapy, vitamin E, Beta-carotene and Aloe Vera. This blemish buster is also enriched with Tea Tree, Clary Sage and lemon…just to name a few!

Gilty Conscience Finger Face Paints – transparent colore with gilded accents of precious metals.

Glides on like satin, dries like velvet. Can be used on face, lips and eyes. Available in 4 shades!

Foundation Brushes (SPF 20) – loose mineral foundation is the single most important change a teen can make because it alone can clear up skin and prevent sun damage. Colorescience foundation brushes are coverage, sunblock and concealer all in one! Available in 11 shades!

“Treatment” Cosmetics Make Aging Graceful

Makeup Takeout! SPF 20 To Go!

Micronized mineral makeup by Colorescience blurs the line between makeup and skin care – that’s because the unique, advanced formulas are makeup and skin treatment, creating a positive effect on the actual condition of the skin. Minerals are a natural anti-inflammatory and they act as an antiseptic on the skin, soothing and helping keep the skin clean. They are also a natural sun shield, blocking nasty

UVA and UVB rays – one of the mainculprits in aging skin.

“Colorescience is dedicated to the protection and enhancement of the skin through our healthy, mineral based cosmetics,” explains president and founder Diane Ranger. “And minerals reflect the light, softening features, something that we all need as we all age!”

Colorescience’s artillery in the battle against aging includes:

Smoothing and Soothing Skin Brightener

Line Tamer –has both short term and long term skin benefits. Instantly, Oat Beta Glucan plumps cells and stimulates collagen production, reducing the appearance of wrinkles. Long-term benefits include a

70% reduction in redness. Skin brightening pale yellow coloration helps soothe stressed skin after extractions, glycolic treatments or microdermabrasion.

Crystalscience Eye Serum – Nanotechnology (miniscule molecules of liquid crystal) offers iridescent, dramatic visual colore play. Blue algae extract tightens fine lines. Also contains anti-oxidants, Aloe

Vera and aromatherapy essential oils.

Shrinking Violet – a universal colore for all skin types containing Azuline, Rose and Neroli oils to help redness, dark circles and puffiness around the eyes.

Foundation Brush – SPF to Go! SPF 20 coverage with the ease of a brush stroke, Colorescience foundation brushes give weightless coverage and are very water resistant.

Perfekt – the apricot tone brightens fair complexions and conceals redness, hyperpigmentation and dark circles. It can be used as a concealer, bronzer, foundation and skin brightener.

Sunforgettable

Sunforgettable is a clear, weightless powder that does not rub off on clothes. It is safe, odor free, clear on the skin and will not burn the eyes when perspiring.

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“Both titanium dioxide and zinc oxides have been widely used in sunscreens for years,” explains

Ranger. “But the particle size has been so large that they clump together, reducing their ability to reflect light and leaving a pasty white film on the skin. Now, with nanopowders – Colorescience has given birth to a new generation of sun protection.”

What’s more, Sunforgettable’s full spectrum UVA/UVB sun protection does not have to be reapplied after perspiring or swimming, since it passed the Very Water Resistant 6-Hour Immersion Test.

It’s A Small, Small, Itty, Bitty, Teeny Tiny World.

Colorescience Uses Nanotechnology to Create SUNFORGETTABLE SPF 30, Brush-On, Powder Sun

Protection

It’s been called the next industrial revolution a technology that manipulates atoms the size of 1/1000th of one strand of hair. Nanotechnology will allow us to manufacture a new generation of products that are cleaner, stronger, lighter and more precise. With it, Eddie Bauer has created an endless battery.

What’s more, Forbes recently began publishing a Nanotech Report.

Colorescience has used nanotechnology to create an entirely new medium for applying sunscreen. The result? POWDER. The new Sunforgettable sun protection relies on the reflective and refractive properties of micronized titanium dioxide and zinc oxide.

“I have always felt that the single most important anti-aging product is the right sun protection,” says

Coloresceince founder and creator Diane Ranger, whose Sunforgettable SPF30 has made it into the hands of actresses Brittany Murphy, Natasha Richardson and Darryl Hannah.

Colorescience Creates That Golden California Glow!

What do you know? The Beach Boy’s wish is coming true. The sun-kissed line-up from Colorescience means every girl can be a California Girl with products that offer a warm, golden glimmer to any skin tone. With four, magical mineral makeup products to choose from, each girl can find her favorite way to be California radiant.

“With our offices based in Southern California, I wanted to develop something we could all wear in the summer to get that tawny glow without exposing our skin to the elements,” says Diane Ranger, president and founder of Colorescience. “Our California Girl micronized mineral makeup helps even out skin tone and makes faces look as if they are back lit.”

California Girl is available in 4 options:

California Girl Suncanny Foundation Bush –

Loose minerals, SPF 20 to go; very water-resistant, retractable makeup brush made with super-goat bristles.

California Girl Dual Finish Pressed Mineral Pigment Compact –

Like liquid in a powder form for classic, full coverage; also contains pure pigment for lasting sun protection.

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California Girl Crème de la Crème Liquid Foundation

–

Double coverage for uneven skin and imperfections, enriched with milk lipids and vitamins F,A,C & E.

Vitamins C normalizes the skin after sun exposure.

California Girl Sun canny Travel Puff –

The pigment is in the puff! Amazing coverage and sun protection. Luxurious puff lasts up to 20 applications.

Colorescience Is All About Firsts!

Colorescience is all about firsts! Founder Diane Richardson Ranger was first to create the loose mineral makeup concept all the way back in 1977. Diane was the first to rate minerals, initially with an SPF 15 in 1992 and then with an SPF 20 in 1995. This year Diane and Colorescience introduced another first: an SPF 30 clear powder sun protection, based on Nanotechnology.

Colorescience is also first in ground breaking and trend setting formulations in a number of colore products categories.

Diane was the first to package loose minerals in a “take it to go,” self-dispensing retractable, brush applicator that takes the mess out of loose minerals. Diane was the first to create a complete line of products in which each product boasts of active ingredients that are skin beneficial, the first to give you confidence that Looking Good is Good For Your Skin.

Sunforgettable - Redefining Sun Protection!

We are proud to introduce you to our newest mineral creation, Sunforgettable . All Powderful, All

Clear, SPF 30 full spectrum (UVA and UVB and Infrared) for Everybody: men, women, and children.

Its is physical sun protection with zinc and titanium dioxide and will not absorb into your skin.

This “invisible” light weight SPF 30 mineral powder comes in as easy to use retractable brush! “Just

Brush It On Pat It In.” based on Nanotechnology, this powder is effective after skin peels, laser resurfacing and most surgical procedures. Those with rosacea, eczema, and other skin problems can use this sun protection.

• All Powderful

• Easy To Use

• Convenient, In A Refillable Dispensing Brush

• It’s Clear

• Long Lasting

• Feels Weightless

• For All Ages, Genders And Skin Tones

• Great For Sports

• Very Water Resistant

• Won’t Rub Off On Clothes

• Will Not Burn Your Eyes

• Safe Sun Protection for Children and Pregnant Women

• Lose The Greasy Cream Sunscreen Feeling

Colorescience Introduces a Purple and Bronze Fall

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With rich, autumn shades of purple and bronze, Colorescience micronized mineral makeup has embraced the romanticism of Fall with their new lineup of products.

“The makeup artists with whom we work gave us a heads up that the colore palate for Indian Summer will be strong this Fall,” explains president and founder Diane Ranger. “We then created a lovely lineup of lavenders, purples, coppers and tawny metallics, which can be worn individually or together.”

Fall mineral makeup stars by Colorescience included:

Blush Brush – It’s just cheeky! This retractable super-goat brush distributes mineral colore that reflects the light and makes ski glow.

The Color Purple – a blushing, pink-violet, an amazingly universal colore for most skin tones.

Genie Colore for eyes is state of the art, loose mineral pigment that can be used dry or wet, for lining the eyes.

Wait Until Dark – violet warmed by rose-gold.

Violets are Blue – a deep, sultry indigo

Bold As Brass – bold, brilliant copper.

Gilty Conscience Lip Polish – 8-12 hours of colore, no feathering and won’t kiss off! It is colored with mineral pigment, no dyes. It feels as if you are wearing nothing at all.

Deception – bronze-pink gilded with gold.

Purple Rain – cool, iridescent lilac.

Crystalescience Lip Serum exhibits dramatic visual colore play and a high level of iridescence.

Includes a patented lip plumper that instantly plumps the lips and over time rebuilds the lip structure. It repairs chapped lips.

Orange U Sweet – warms up any lip colore with a sun kiss.

Thru the Grape Vine – adds a hint of wine to any lip colore. http://www.beautybridge.com/cltitr.html

Bare Escentuals Inc. Market and Trends

Bare Escentuals Inc.

(NYSE: BARE) is a San Francisco based natural health and beauty company that develop and sells its own line of cosmetics (i.d. BareMinerals, i.d. RareMinerals, and Bare Escentual brands). The company operates over 300 privately owned boutiques and holds retail contracts with department stores and home television networks. The product: BareMinerals generates most of the company's revenue.

24


Differentiation and distribution channels are the keys to the company's success. Bare Escentuals produces cosmetics with 100% all natural minerals. In doing so, BARE maintains a brand image that feeds on the mainstream public's desire of having skincare and make up in one product. The company aims to cover all income levels of consumers through displaying different products at different price levels ranging from over a hundred to around twenty dollars.

Instead of going through department stores such as the conventional makeup product, BARE focuses its marketing plan through infomercials in an exclusive contract agreement with QVC-an internationalshopping channel that has evolved into one of the world's leading multimediaretailers with

50 million customers for over 21 years. From that angle, BARE began by selling directly to the customers and thus building a loyal customer base without using the middle retailer. It remains the number 1 cosmetic product sold on QVC.

The majority of demands from QVC is rooted in the lower level consumers who are more susceptible to Part of the reason is due to competiting boutiques and department stores. Secondly QVC mainly channels to the lower economic level consumers who are more susceptible to economic downturns.

Although QVC remains the primary distribution channel for BARE, it also sells its products through various distribution channels consisting of premium wholesale, company-owned boutiques, spas and salons, and online shopping (2008).

[1]

Seeing this success, competitors have come forth with similar products, however, Bare Escentuals remain one of the most popular and well known of mineral based make ups. In the past five years,

BARE has experienced more aggresive growth than its competitors despite the lapses in the economy.

History

Bare Escentuals Inc. was started in 1976 in Los Gatos, California. Until 2006, it was called STB

Beauty before changing it to Bare Escentuals Inc. Starting in the 90s, the company began to sell its products through boutiques in the San Francisco Bay Area. The CEO, Leslie Blodgett advertised her company through QVC television marketing using real women testimonials. Currently, Bare Escentuals are sold in one of the company’ 300 private retail stores and boutiques and make up specialty stores

(Sephora). Their most famous brand; bare Minerals has won numerous awards, including the Glamour

Magazine’s award (2006 and Teen Vogue Reader’s Choice for best foundation (2007). [2] </reference>

Overall Business Outlook:

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Products:

I.d. BareMinerals: BareMinerals was the first product created by Bare Escentuals Inc. and up to date remains the most popular line among consumers. It is the number 1 product sold on QVC. The company holds exclusively the patent for extracting fine minerals used for BareMinerals, a product proven to cover blemishes allegen free. it has been tested to cover rosasea and acne. BareMinerals make up the majority of profit for Bare Escentuals Inc. For the past five years, it is also the leader in the company's expansion, being responsible for the substancial increases in profit over the past year.

I.d. bareVitamins: Cosmetics appliances (finishing powders, facial-prep products, lipsticks, lipglosses, lip liners, mascaras, application tools and brushes) used to complement the BareMinerals makeup kit.

I.d. RareMinerals: The newest creation: nighttime skincare product (Skin Revival Treatment) using the same patented mineral extraction and formulation. It is the first skincare product to be made from 100% minerals (with newly discovered "Jurassic Soil"). Clinical trials tested skin cells turnover increased 35% after 23 days of use. On February 4th, 2008, due to the favorable customer response the company has released two new products: Renew & Reveal Facial

Cleanser and Blemish Therapy. RareMineralls has been publicized in both WWD Beauty Biz magazine and Shop, Etc. Magazine for its innovative formula. [3] .

I.d. md forumlations: Created in 2004- professional skincare products-luxury spa items.

Both the production and the consumer demand for BARE products are in the United States.

International sales are limited to less than 5% of the total revenue.

The Market:

Sales/Advertisement: While Bare Escentual's products began through informercial and private boutiques, it has expanded to become a popular item at big name department chains such as( Macy's

Inc. (M) and Nordstrom (JWN) . The number 1 distribution channel remains through QVC: through

QVC's international locations Bare Escentual is beginning to make a mark in other countries.

However, as of 2007, the international revenue is only 4.7% of the annual sales. The sales came from color cosmetics (93.7%) and skin care products (6.3%) respectively. Instead of focusing on one particular group of consumers, Bare Escentual's products are priced in various levels to target anyone.

Further market sales are broken down as follows:

Distribution Detail % of Net Sales 2007

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Premium Wholesale: ULTA, Sephora, Macy, Nordstrom, JC Penny.

Boutiques Company owned: 1900$ sales/sq. ft

32.10%

16.80%

Infomercial The Food Network, TLC, CNBC, Lifetime TV, WE 24.70%

Home Shopping TV Exclusive rights to QVC 11.80%

Spas/Salon

International

Offered at 1800 spas

Cut back on overall international sales

11.10%

3.50%

Influential Trends

Growth of Asia: To date, BARE products can be found in Japan, Australia, and Europe. Out of these three, Japan and the Asian market have the greatest impact on BARE. Asia is the most populous and the largest of all continents with over 4 billion people (60% of the world population).

In terms of nominal GDP in 2007, Asia is the 3rd- after N. America and Europe. Historically, Japan has had the largest economy in Asia and second-largest economy of any single nation in the world as well as the 6th largest importer. BARE's expansion to Japan is favored by friendly U.S. relations, which leads to a low tariff, and the Japanese love of Cosmetics. Using BARE's competitors as an example, both L'Oreal and Elizabeth Arden have major headquarters in Japan. There is a culture for beautifying skin and buying expensive cosmetics. Aside from that, China also has a huge pool of consumers interested in foreign cosmetics. In 2005, the Chinese cosmetics retail sale increased by

14% in the single month of October with a future predicted increase of 8-10% up to 2010. New retail laws were published in that year ending that allows cosmetic companies to engage in direct sale with little restriction. In 2005, Avon began an aggressive marketing strategy in China.

[4]

Preference for natural products: Although there is assurance from the largest cosmetic companies that their various ingredients are safe to use, there is a growing preference for cosmetics that are without any "synthetic" ingredients, especially those taken from petroleum. Once a niche market, certified organic products are becoming more mainstream. Even though many products in cosmetics are regulated, there are many health concerns that come from harmful chemicals in these products. Some products carry carcinogenic contaminant 1,4- dioxane. Not all organic products are better but they don't carry harmful preservatives that could be harmful. Many cosmetic companies are coming out with "All natural" and "Organic" products.

Petroleum Prices: Because many cosmetic products include particles from Petroleum, it is a factor that cosmetic companies must adhere to. While cosmetics take up a relatively small percentage of the world's oil supply, it will still be affect when the prices go up. A higher operating cost for the conventional chemical based cosmetic companies will lead to an increase in competition for the natural mineral makeup market.

27


Competition:

Because the key difference between the marketing strategy of BARE and its competitors is the distribution channel, BARE's relative performance can be broken into two segments. Either it is measured against the larger and more established cosmetics company such as the following:

Company Revenue -2008 Net Income Operating Income Market Cap

Avon* 9.94B 530.70M 589.80M 17.14 B

Neutrogena* 16B

Estee Lauder 7.47B

Bare Escentuals 511.00M

10.5 B

445.70M

88.07M

15.5B

716.50M

97.38M

192.93B

8.83B

2.14B

Note: Neutrogena belongs to JOHNSON & JOHNSON (JNJ) thus its financial data is that of JNJ .

Note: Avon and Neutrogena both have created their own line of mineral makeup, but the financial data is inclusive of all of their products and not restricted to the sales of mineral makeup.

Or it can be measured more specifically against natural mineral makeup industry by itself, where it appears much more competitive:

1) L'Oreal (LRLCY) : A France based cosmetics company with 19 global brands under 4 different product ranges. Instead of focusing only on developing products as a mean of expansion, L'Oreal is also acquiring other companies in different fields. On April 7th 2008, L'Oreal and Nestle SA have joined to buy CollaGenex Pharmaceuticals Inc. It is a far more global company than BARE and depends mostly on foreign sales in the U.S. and Asia to maintain the yearly revenue.

[7]

2) Elizabeth Arden (RDEN) -market cap 407$M : A U.S. beauty company that sells skincare products, color cosmetics and fragrances. On November 5th, 2007, RDEN signed an exclusive glocal licensing contract with Iconix Brand Group, Inc. (Iconix) for the development, marketing and distribution of men's and women's fragrance, cosmetics, and skincare products with the leading lifestyle apparel brand

Rocawear.

[8]

In comparison to other cosmetics company, Bare Escentuals have a smaller revenue and a smaller income. However, it does not function in a conventional cosmetics company's way in its products and its marketing ways.

28


Finance:

Sales/Profit

Bare Escentuals Inc. closed 2007 fiscal year with 511 million dollars in net sales, a 30% increase from

2006 (394.5 $ million). The 90,000 shares outstanding are valued at about 0.94$/share (88 $ million in net income). [9] AS indcated by the table, the company shows a continuous growth in sales as well as an increasing net income.

Year Net Sales (in Thousands) Net Income N.I. as % of sales

2007 511 88 17.20%

2006 394.5

2005 259.3

2004 141.8

50.9

23.8

4

12.70%

9.80%

2.80%

Stock Holders

The top stock holders for BARE are the following: Capital World Investors(9.2M shares, 10%) Artisan

Partners (4.6M shares, 5%) and Thornburg (4.6M shares, 5%), Waddel & Reed Financial Inc. (4.2M shares, 4.6%).

Expansion

On April 7th 2008, Bare Escentuals Inc. acquired the Cosmeceuticals Limited

("Cosmeceuticals")company, which Bare Escentual's products to spas, salons and QVC in the U.K.

[10]

The focus of BARE's expansion is through popular retailers such as Sephora and Ulta, which will take sales away from the company's private boutique stores. The company's revenue has shifted from infomercial sales-as in QVC, to lower gross margin whole sale business. Furthermore, the decrease in infomercial sales is caused by two reasons: competitor products and macro economics. The majority of the customers reached through infomercials belong to the lower income level, making them more suseptible to the fluctuations in the U.S. economy. The company overall has a unique and diverse

29

Legacy Marketing Plan distribution model that is responsible for the aggresive growth in the past, but it has no comparative advantage. A danger to overly aggresive growth is over-reaching into markets that are unlikely to sell well. BARE is not big enough to act in ways L'Oreal or Elizabeth Arden can.

Financial Assumptions

Social Media

Year 1



1% of social media visitors will visit the site



10% of visitors will purchase from the site



Estimated visitors 1,200



Average purchase $90



Estimated sales from social media is $108,000

Year 2

3.


4.


5.


6.


7.

Estimated sales from social media $216,000

Year 3





Estimated sales from social media $324,000

Website Audit – Beauty Cosmedics

1.

Is the URL memorable? (Is it intuitive? Are there dashes? Is it .com?)

Beauty Cosmedics can be found by typing their name directly into the browser bar and their company name is their URL. However, there may be some unavoidable confusion caused by their unique spelling of Cosmedics with a “d”. When you Google the company’s name is asks you if misspelled it or meant something else, and the below that it shows the link to their website. You have to be looking specifically for them and know how it is spelled or there could be some confusion.

2.

Does the homepage load quickly ?

The homepage loads very quickly and without any issues.

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3.

Are there barriers to website entry? (Registration, log-in, software downloads, etc.)

There are no barriers to entering the website such as registration, log-in, or software downloads.

4.

Is the website readable?

The website is very easy to read and everything fits nicely onto the page without having to scroll down.

The font size is very readable and is made easy to read with contracting colors in the background.

Some of the text is in red but is read very easily and the page flows nicely from left to right and top to bottom making it very easy to read. The site does use some grey but because of the bright lettering it does now cause a problem.

5.

Is the home page above the fold?

Everything on the homepage is above the fold and when you load the site a brief description of the company is given with their mission statement.

6.

Does your website match your brand?

The color schemes and layout of the website do a great job of complimenting Beauty Cosmedics brand.

All of the pictures on the website greatly enhance their target market; the natural, healthy-skinned, active woman.

7.

Is there a clear call to action?

There are direct links to all action points and participation is encouraged as the links on the page light up as they are scrolled over. All products are easily found with very little searching. Also, the contact information is easily seen on the navigation bar.

8.

Are contact details easy to find?

The contact tab is easily found on each page but there is no phone number. The only way to contact

Beauty Cosmedics at this time is by sending an email leaving your name, number, email and an area to leave your questions and comments.

Navigation

9.

Is it easy to use?

The site is very intuitive and easy to use, even for a non-tech savvy user. No matter what page you are on you can link back to the home page by clicking on the Beauty Cosmedics logo at the top of the page.

10.

Is there a site map?

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There is a site map but it cannot be accessed through the home page. From all other pages on the site it can easily be accessed by clicking on the link in the footer of the page.

11.

Can you return to home from any page?

It is very easy to navigate back to the homepage by clicking on the Beauty Cosmedics logo that is at the top-left of every page. The site does not contain a “breadcrumbs” feature and it is not needed since the site simple to navigate.

12.

Is there an internal search engine?

The site does not contain an internal search engine and it is not needed since there is not a massive amount of content on the site. Available information for each product is easily located on the same page as the particular product that is being viewed.

13.

Are there internal links?

The site does contain internal links for each product that describes things such as the ingredients, application, canister information, brush care, shade selection and reasons for using the products. They are accessed by clicking on a very visible tab labels beneath the product description. None of the links on the site led to external pages however.

14.

Do the graphic links have text links (ALT tags)?

The graphic links do a good job of describing what is being shown in the images. For instance, when you click on the different shades of powder a larger image of the powder pops up describing the particular color shade with the prices for the color in a Brush2Go!, a refiller, a canister and a petite canister.

15.

Is the main navigation consistent throughout the site?

The navigation bar stays in the same place no matter which page is being viewed and the order of the links remain the same throughout. I see no reason why even the least sophisticated internet users would have any problem navigating Beauty Cosmedics site.

16. Does your website communicate your brand message?

Yes, the website currently seems to clearly communicate the brand message of what differentiates

Cindy’s company and products from her competitors, the website contains brief blurbs of information that get right to the point of telling customers what the products do, and who they can benefit.

17. Is it current?

There certainly is no news sidebar; however the animated home page could be utilized to promote current specials or new offers. I cannot seem to find a “last updated date” anywhere on her website. I honestly can’t tell when the website was last updated just by looking through the pages, might be a good idea to record the last update somewhere on the margins of one or more pages.

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18. Is it well-written?

Yes, the site is well-written, seems to be error free, and it is easy to understand. I have no experience with makeup at all, but I can still grasp what the site is talking about.

19. Is it easily read and understood?

It seems to be easy to read minus a few instances of words that readers will likely not comprehend. For example, I don’t think the average reader will have any idea what parabens are, however, this could just be related to my general inexperience with the wide world of makeup products.

20. Is it engaging?

The website seems to be engaging and conversational; I feel very comfortable reading about the products and what the company offers. The website also seems to make good use of the first personoriented dialogue in order to create a relaxing shopping atmosphere.

21. Is it easy to digest?

Yes, all of the products seem to be summarized in two short little blurbs/bullets, they are very easy to read and evaluate in a short period of time. The front page is also divided into short, easy-to-read sentences that can be evaluated quickly.

22. Do the graphics add value for the viewer?

The pictures on the website don’t really seem to add a lot of value as far as what the makeup can do for people. All of the pictures with the products appear to me as very generic images of models that might not necessarily even be using the products advertised on the site. There is no caption on the pictures mentioning that the model is using a specific product in a certain shade. If I was a customer, I honestly would not trust the pictures, because they honestly look like they could have just been pulled from

Google Images and pasted into the site. The pictures of the products themselves are adequate, but there really needs to be a better representation of how they actually look on the faces/skin of individuals. I should mention there is a video tab that is supposed to show the application of the product, but currently there is no video linked to it, it just says “coming soon”. That button really needs to be removed until the video, because that’s just annoying to tease customers with something that is not actually there, and also reduces the legitimacy of the website in my opinion.

23. Are there third party endorsements?

They offer a few pictures of magazine publications without any included links and there are no direct endorsements from any professionals, and no testimonials to be found on the site. Overall the website is really lacking in this area. I know Cindy was supposedly working on getting some professional endorsements, so if she succeeds these should be added to the website as soon as possible. Currently there is absolutely nothing on there to add to the legitimacy of the website.

24. Do you offer sufficient content to help a prospective customer make a decision?

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This is another area where this website is really lacking. There is absolutely no content to make the products seem more appealing versus competitors. A few lines of text are not enough to convince customers that they should invest in the product the company is offering. There need to be clearly captioned pictures of women wearing specific products, videos related to the ease of application of the products, or something to visually prove the differentiation of the product. Makeup is a product that people judge visually by how they perceive it will enhance their physical qualities, so there absolutely must be some visual evidence of how the product will accomplish that feat.

25. Do you offer rich content such as videos, podcasts, presentations, etc?

There are currently no videos, podcasts, or presentations of note. There is a button for a video, but no video actually linked, which is very annoying. Content needs to be offered in the future. Videos definitely need to be offered that can showcase the product in a visual way for potential customers considering making purchases.

26. Does your site generate leads?

There already is an e-mail capture form in place on the website. If articles are added, than leadgenerating capability will need to be added to those.

27. Does the site encourage discussion?

There is nothing currently on the site promoting user interaction and discussion. Live chat is really not an option due to the limitations on Cindy’s time. However, a blog with comments or a message/discussion board should be easily manageable, and would provide the opportunity for customer interaction and aid in the creation of an online community promoting the products. These should be implemented as soon as possible to aid in creating a buzz for the products.

28. Is it available in multiple languages?

To my knowledge there is not an option to view the website in different languages. However, I am not yet aware of Cindy’s target markets, and if she plans to sell internationally. If Cindy wants to sell internationally, then alternate language versions of the website will definitely need to be created.

29.

Is your domain name easy to find? Is it relevant?

Yes, BeautyCosmedics domain name is BeautyCosmedics.com, which is easy to find. The domain name for BeautyCosmedics is relevant as long as name is typed directly into the browser bar; otherwise the name has a tendency to become confused with “cosmetics”.

30.

Are your URLs friendly?

Yes, BeautyCosmedics URL http://www.beautycosmedics.com/ is friendly, it opens a BufferedReader on the input stream and reads from the BufferedReader (buffering characters so as to provide for the efficient reading of characters, arrays, and lines), thereby reading from the URL. Everything read is copied to the standard output stream:

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31.

Does the site employ Meta tags? Are your Meta tags used appropriately?

Yes, the site does employ Meta tags, which allows you to influence the description of your page in the crawlers that support the tags, however if the page is not researched appropriately in google, the meta tags are redirected to look for “beautycosmetics” vs. “beautycosmedics”.

32.

Are there unique title tags for each page? Are there keywords in your titles?)

Yes, BeautyCosmedics have title tags that are used as the words to describe the page when someone adds it to their "Favorites" or "Bookmarks" lists. For instance, if you added a page to your Favorites in

Internet Explorer, it would show up like the Meta tags that are used and listed on the Search Engine

Features page).

33.

Does the homepage have too much or not enough content?

The homepage could use a little bit more copy so that it will be picked up by search engines, without loosing its impact with viewers. The wording is just right, and gives a description of the company, what it does, and what it has to offer. The length and content compliment each other and makes the homepage easy to read with understanding by using applicable keywords.

34.

Does the content incorporate keywords effectively?

Yes, the content incorporates keywords effectively, which legitimizes the homepage with credibility allowing users to understand what Beauty Cosmedics site is about.

35.

Are keywords linked within the text?

No, Beauty Cosmedics does not have keywords linked within the text which would allow the Websites normally to gain a small amount of traffic directly from the sites that link to them. This traffic may not be large, in comparison to what you’ll get from search engines, but when the site is linked to from a number of reference points, Beauty Cosmedics will be able to rely less on search engine ranking to gain new customers. Traffic isn’t the only benefit to a link building campaign. Networking with other online businesses and having Beauty Cosmedics site listed on well-respected websites can help boost the image and spread brand awareness.

36.

Is the company name mentioned when possible?

Beauty Cosmedics name is not mentioned enough to offset the chance that someone else comes along with the same company name or a close variation (i.e. Beauty Cosmedics is very easy to become confused with Beauty Cosmetics.)

37.

Do you start paragraphs or pages with keywords?

Beauty Cosmedics could use more keywords at the start of paragraphs to improve visibility with search engine optimization. By using more key words, Beauty Cosmedics’ site would show up in

35

Legacy Marketing Plan the search engines when qualified and interested people go online and search the company keywords.

38.

Does your site make effective use of inbound and outbound links?

No, Beauty Cosmedics does not make effective use of inbound and outbound links. Beauty Cosmedics could use relevance and quality inbound and outbound links, which could serve as important factors in determining the site authority. Furthermore, inbound links, which are better called backlinks, are considered more useful and important in the entire link exchange plan.

It would be very important for Beauty Cosmedics website to make each page an authority page. This can be achieved if Beauty Cosmedics built inbound links or backlinks to each one. In order for Beauty

Cosmedics to generate quality backlinks, the first aim is to ensure that some percent of the backlinks point to the home page.

39. Is fresh content added regularly?

Beauty Cosmedics website is built on a search engine friendly content manager system, however fresh content is not added daily. By Beauty Cosmedics adding fresh content to the site on a regular basis

(every day, if possible) keeps Google's spider "interested" in the site. Once it realizes that Beauty

Cosmedics add at least one new page every day, Google's spider will visit the site and crawl the pages more frequently. Beauty Cosmedics new pages will get crawled indexed and begin showing up in searches in days instead of weeks!

Preventative Cosmetics

“Preventive Cosmetics,” is a concept that gives cosmetics a new worth, by informing the consumers about what is scientifically proven that actions on skin today will minimize damage of tomorrow.

Prevention against premature ageing, can save someone a lot of money. After the damage has been done to the skin, reversing it with treatment can get expensive.

Damage to the skin caused by intense exposure to sunlight. The visible effects of photoaging are fine wrinkles, mottling and pigmentation of the skin, and skin roughness—changes that are usually

36

Legacy Marketing Plan associated with chronologic aging (calendar years). But, photoaging is not a good indicator of chronologic age; it just makes a person to look older than his or her chronologic age.

Photoprotection is the use of physical and/or chemical agents to prevent the skin-damaging effects of ultraviolet (UV) radiation in sunlight. Physical agents are clothing, umbrellas and parasols, awnings and tents that protect you from sun when you are outdoors. Chemical agents are sunscreens you apply to your skin. You also need a broad-spectrum sunscreen with SPF 30 or higher if you are going to be exposed to sunlight for more than 20 minutes. An important point to remember : Even on cloudy days, 80 percent of the sun’s UV rays reach the ground. A cloudy day is not a reason to skimp on photoprotection.

The three approaches to counter photoaging are:

1. Avoid the midday sun

2. Prevention by use of photoprotective agents—sunscreen and clothing

3. Skin rejuvenation treatments

Treatments

Procedures that can erase years from the face and neck, by reducing the appearance of lines and wrinkles. Side effects minimal and the procedure do not generally require downtime.

Botulinum Rejuvenation

: this is one of the most popular cosmetic procedures in the United

States.

Also Called

· Botox®

· Botulinum toxin

· Botulinum toxin type A

· Botulinum toxin type B

Signs of Aging Treated

· Crow’s feet

· Forehead lines

· Frown lines between the eyebrows

· Neck bands and lines

Cost: depends on the units used tipically $550.00 for 25 units

How Long Results Lasts

Generally, the results last about 3 to 4 months. As the effects gradually fade, the muscle action returns and lines are seen. Treatment can usually be repeated as the effects wear off.

http://www.skincarephysicians.com/agingskinnet/photoaging.html

Chemical Peeling

: This procedure peels away many visible signs of aging on the face, hands, neck, and chest. After the skin heals, fewer wrinkles, less discoloration, and improved texture may be seen.

Also Called

· Chemexfoliation

· Dermapeeling

· Refreshing peel


· Age spots

· Discoloration (blotchy complexion, uneven skin tone)

· Dull complexion

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· Fine lines (especially under the eyes and around the mouth)

· Freckles

Effectiveness

Chemical peels effectively remove damage in the top and middle layers of the skin. Depending on the depth of the peel, a peel can remove wrinkles, age spots, and freckles. Some can diminish mild scarring, improve skin tone, eliminate blotchiness, and clear acne. Most results are not permanent.

When a superficial peel is recommended, about 3 to 5 peels are needed to see the desired results.

Cost: About $500.00 a peel

Dermabrasion

: This cosmetic procedure literally sands away damaged skin. As the wound heals, new skin appears that is smoother, more radiant, and even in tone.

Also Called

· Mechanical resurfacing

· Surgical skin planing


With advances in laser technology, dermabrasion is not used as much today as it was in the past.

Dermabrasion still offers effective treatment for:

· Scars, primarily shallow scars resulting from acne, chickenpox, or an accident

· Wrinkles, especially deep lines that form above the lip

How Long Results Last

4-6 treatments are recommended for results. With proper skin care, which includes protecting the skin from the sun, the results can be long lasting. Some people have retained their results for 10 years or more.

Cost: $200.00 per treatment. http://www.skincarephysicians.com/agingskinnet/photoaging.html

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Who or what is your target market - UHD-Team-C

UHD TEAM 3

Legacy

Team members/roles:

Market Analysis

Competitive Analysis

Market Strategy

Appendix

Financial Assumptions

Navigation

Preventative Cosmetics

The three approaches to counter photoaging are:

Treatments

Botulinum Rejuvenation

Chemical Peeling

Dermabrasion

Related documents

Products

Support

Who or what is your target market - UHD-Team-C

UHD TEAM 3

Legacy

Team members/roles:

Market Analysis

Competitive Analysis

Market Strategy

Appendix

Financial Assumptions

Navigation

Preventative Cosmetics

The three approaches to counter photoaging are:

Treatments

Botulinum Rejuvenation

Chemical Peeling

Dermabrasion

Related documents

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