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Agenda:
Goals: Rachel
Company Overview
Established in 1981, by Essie Weingarten
Walked into a nail salon and was disappointed with
the few color choices
Grew in popularity for 29 years
Company Overview
Acquired by LOreal in April 2010
Saw increase in nail care market
Essie product line has increased
Started to reach international markets
Company Overview
LOreal has a market share of 23.4%
Made up of 33 brands
Four divisions
LOreal Luxe, Active Cosmetics, Consumer
Products, and Professional Products
Essie falls under the Consumer Products division
LOreal Brands
Product Overview
Competitive Analysis
LOreal
Avon
Revlon
Description
Products geared
towards women
Products geared
towards women
Products geared
towards women
Target Market
Women 16+
Women 21+
Women 16+
Positioning
Strategy
High-Price
Strategy
Distribution
Strategy
Low-Price
Strategy
Product Benefits
Variety
Sold by people
known by
consumer
Variety
Pricing
$7.00-$9.00
$6.00-$10.00
$7.00-$9.00
Classification
Leader
Challenger
Follower
Survey Results
We discovered that
Essie is the most
typically used
polish.
Survey Results
We discovered
that most people
are buying their
nail polish at drug
stores.
Survey Results
Most nail polish
purchases are
based on impulse.
Goals
Increase LOreals market share
from 23.4% to 24% in the next five
years
Increase Essies presence in Drug
Stores, to at least 40 shades per store
Increase advertising through a
celebrity endorsement campaign
Marketing Strategy
Target Market:
- women, ages 16-26
Competitive Advantage:
whimsical edge, higher quality, chip resistant, plethora of colors
Positioning Statement:
Essie makes the everyday look special with a wide variety of shades
that range from whimsical to professional, while providing high quality
shine and a chip-resistant finish.
Marketing Program
Product Strategy:
No Changes to Current Product Features
Pricing based on Product-Quality Leadership
Pricing consistent with brands history
Marketing Program
Marketing Communications Strategy
MY FAVORITE POLISH IS
DJ PLAY THAT SONG
Ad Campaign
WHATS YOURS?
Marketing Program
Recommended Media
Marketing Program
Proposed Budget
Total =
$8,043,000
Marketing Program
Public Relations Plan
Marketing Program
Trade and Sales Promotion
No Current Sales Promotions (discounts/bundling), will
continue not to offer this
Will provide 10% bulk discount for retailers to persuade
them to carry the goal of 40 shades per store
Financial Projections
We forecast that this Marketing Program will
increase LOreals sales by 2.5%.
Assumptions:
Increase in Essie sales will increase overall sales by 2.5% even
though Essie is just one LOreal brand
COGS will increase by 2.5% as well
Marketing Budget is a part of Operating Expenses
(in thousands)
Breakeven Analysis
LOreal will need to
generate
$25,817,583,000 in
Sales in 2016 in order to
break-even that year.
Implementation Timeline
Goal: Roll out the Marketing Program in time for the 2015
Winter Line (November 2015)
January 2015: Contact Celebrities
January 2015: Contact drugstores about increasing Essie presence in each store
February 2015: Photoshoot
March-April 2015: Design/Development
September 2015: Newsletter to subscribers
September 2015: Website redesign
October 2015: In-store displays
October 2015: Magazine ads
Contingency Plans
Major Issues
Celebrity we choose has bad
PR or other issues
Stores refuse to increase
amount of Essie shades
Thank you!