Download - OPI Nail Polish
Nail Polish by
Hannah Dion
Yvonne
Dygon
Molly Valcou
r
Alena Filistov
ich
Industry OverviewBeauty Salon IndustryHealth and Beauty Department IndustryNail Care Industry Highly fragmented- personal salons near high trafficEconomic Drivers: Disposable Income, National Unemployment RateDemand Industries: Weddings, Personal Use ConsumerRevenue: $50.2BAnnual Growth: 2.6%-3.2%Segmentation: 10.2% nail services (30% of nail salon services are offered within larger salons (hair/skin care)Heavy users: Age 20-64 (most disposable income). 90% ages 35-44 account for nail services.
-Business Insights Essential, OPI.com, bisWorld (2014)
O.P.I. (Odontorium Products Inc.) is a division of Coty CorporationFull line of professional items:
nail treatments, finishing products, lotions, manicure/pedicure products, files, tools and acrylicsCorporate Social Responsibility geared towards women, and locally around Hollywood, CA:
Delete Blood CancerSusan G. Komen FoundationCity of Hope Schaeffer Family Foundation (CEO’s
foundation)
-Business Insights Essential, OPI.com, Hoovers.com
Product Overview
Brand Image: “The most-asked-for brand in the industry! With a superior range of shades and the hottest special effects and textures, OPI is the go-to brand for nail fashion. From elegant classics to eye-popping brights, OPI has your color! Formaldehyde-free”
“Professional Nail Care”Nail treatments, finishing products, lotions, manicure/pedicure products, files, tools and acrylics
Over 1,000 colors.Price: $8.75 per bottleDistribution: (Only sold through authorized channels) CVS, Walmart, Target, Kmart, Duane Reade, Kroger and H-E-B locations, Ulta, Sephora.Sales History: 2010: $80 million (When Coty obtained the OPI company)Market Share: 20%
-Moodie Report, Walmart.com, OPI.com, Bloomberg, Drug Store News
Competitors
(Mintel, IbisWorld)
Revlon Essie (L’Oreal)Image Classic, well recognized Trendy, focus on creativityStrengths Focus on R&D, product
varietyConvenience, some color variety
Market Share
2.1% 9.3%
Weaknesses Lack of scale, concentrated customer base, known for their makeup more 64 colors
No product variety, 260 Colors
Positioning Innovative Beauty Professional quality, yet whimsical
Target Audience
Women 55+ with higher income
18 to 24 yr olds
AD Budgets of OPI and Competitors
-Due to increasing trends in nail color, Ad$pender was set for a 2 year time period on the total advertising budget for OPI and its competitors…
RevlonCable TV Dollars (000) $49.2Internet Display Dollars (000) $2.3Total Dollars (000) $51.5
EssieMagazines Dollars (000) $61,665Internet Display Dollars(000) $816.7Total Dollars (000) $62,471.7
OPINetwork TV Dollars (000) $31.4Magazines Dollars (000) $53,446.2Internet Display Dollars (000) $481.2Total Dollars(000) $53,958.7
SWOT AnalysisStrengths:
Chip resistant, long lasting formula Social Corporate Responsibility
Whimsical NamesOver 1000 colors
Design: large brush, easy/strong grip top.Already in 50 different countries
Focuses on nail care
Weaknesses:Price- $3.45-$8.75 per bottle compared to
Essie $5.32-$8.45 Not available on website
Don’t have much social media integration“Salon” brand
Opportunities:Nail art is trending, always room to
grow/deliverEarned media from Beauty
Bloggers/YoutubersExpand upon “salon” to everywhere brand
Threats:Highly saturated market
Niche market (female dominantly) Disposable income/unemployment rate
(IbisWorld, OPI.com, Hoovers.com, Walmart.com)
What Makes OPI stand OUTPoints of parity:- Convenience/location- Whimsical names
Points of difference:- Salon Quality (higher income
buyers) / professional- color variety (1000+ colors)- Grip handle
OPI’s Current Positioning Strategy
Current: Celebrity Endorsements
-Includes Justin Bieber, Selena Gomez, Carrie Underwood, the Kardashian’s, and Modern Family who have their own line.-Each endorsement has their own “collection”
Consumer Market Segments
SImmons, Experian, Mintel
Booming with Confidence
Significant Singles
Flourishing Families
Suburban Style
Promising Families
Married womenpeak income Women 35-65 (White collar professions) Sophisticated
Taste.Enjoy the
nightlife, & restaurants
during week, and travel to
museums, and antique shops on
the weekends.
Singles 35-65 years old
Nightlife, robust leisure lives, Live in cities
Below average income
Body-conscious“Champagne
Tastes on Beer Budgets”
Married women with children in
their 30’s-40’s.Financially
stable/professional careers
Prefer the ease of convenience when shoppingCare about self-
image.
High income, and upscale
livesSuburban
neighborhoods30-40’s
Fashion forward who check on
new styles and trends Shop online, and big box retailers for
convenience.
Recently married, entering
workforce, & starting families.Entry-level pay, but disposable
cash to lead rich leisure lives.Like to shop; stretch their
money,(sales, factory
outlets & clearance racks.)
Outskirts of urban cities
-Experian Marketing Services
Potential Target Audience
(Experian, Mintel)
SUBURBAN
STYLE
FLOURISHING
FAMILIES
SIGNIFICANT
SINGLES
Top brands used by these
segments:Sally Hansen
38% OPI
35%Revlon
25%Essie
21%
Customer Reviews
-Amazon, Ulta
Marketing Plan: ObjectivesIncrease revenue by 6% ($4.8 million) or, increase market share by 5%, with a goal of 25% market share.
By highlighting the sophisticated value of OPI we will encourage users of other nail lacquers to switch
Primary Target Audience
-Experian Marketing Services
35-65 years oldCollege educatedModest income, but maintain urbane
lifestyles“Champagne tastes on beer budgets”Buy new fashion every season in order to
make a unique statement with their outfits. Admit that they’re price-sensitive shoppers
who go to discount and mid-market retailers like Marshalls, Macy’s, Gap and Nike.
Watch AMC, Oxygen, Style, BET and CNBC.Read NewspapersMagazines main source of Entertainment
Self, Shape, Vogue and Vanity Fair
Purchase Determinants
● Replicating salon looks
● Limited edition● Advertisements● Social Media● Kits● Celebrity
endorsements ● *Women in their
50’s buy to replace a product.
Significant Singles
Secondary Target Audience30-40 year old married women with children from 5-25 years old.Financially stable/professional careersPrefer the ease of convenience - don’t plan many trips, even if close to a mall.Care about self-image, but also spend on children.Shop through catalogs and Websites - receptive to advertising links, email.Average fans of TV, radio, newspapers and magazines30-40 year old women with high income, and upscale lives living in suburbs
Fashion forward who check on new styles and trends.Shop online, and big box retailers for convenience.
Premium TV channels like Speed, IFC, BET and TV Land. Get their news and entertainment from the Internet.
Respond to email ads, sponsored Websites and links.
Flourishing Families
Suburban Style
-Experian Marketing Services
Positioning StatementO.P.I is the professional nail polish that not only has a salon quality formula, but also offers it in every bottle of rich colors on the color
spectrum.
Perceptual Map
Communication Objectives Using AIDA
Action: Billboards will be positioned near stores to drive action to buying O.P.I products like a POP sale, and transportation offering as a reminder/ aiding in recall to buy a nail polish before you go out tonight. It will also enhance our positioning strategy by placing them in places where people go in a hurry, and will have the potential to be exposed. Desire: Social Media features on blogger’s websites will promote desire to belong to O.P.I using community, driving potential consumers towards the O.P.I brand. Interest: Magazines will generate interest by showing customers what kind of color options we provide and make consumers want to look at the ads, or go to a retailer that sells more to view more colors.Awareness: Television Advertisements will make potential consumers aware of the product and how it will take part in their daily lives, and show how stylish it is and connect with their favorite television programs. Window display in salons to raise awareness that the salons carry O.P.I. brands.We want to generate buzz by billboards as well.
5-10%20%
30%50%
Communication MixBroadcast Print Outdoor PromotionTelevision
Grey’s AnatomyCastle
Oxygen NetworkAMC Network
BET
MagazinesSelf
Shape Allure Vogue
Elle Glamour InStylePeople
NewspapersNY Times
Transportation (subways, buses,
taxis, airports)
Billboards
Urban citiesCA, FL, TX, MA, NY, IL, OH, VA
Sales promotionsSamples in Magazines
Coupons
Public relationsSponsored events
Earned media
Creative Plan: ObjectivesCreate brand preferenceMethod: focus on
brand quality throughout TV ads and
print ads. Increase exposure through
billboards.
Big IdeaThis will be accomplished by showing busy women using professional nail polish, doing tasks that would cause
other nail polish brands to chip, but not O.P.I.
Advertising Appeal and Execution StyleRational Appeal: Focusing on the qualities of the polish- sophisticated, chip-resistant, multitude of colors. Objective: AwarenessMethod: Repetition, and Location
Magazine Example 1
Magazine Example 2
Television Example
Paints nails first Looks for an outfit Washes face, and puts on makeup
Curls hair Drives to destination Shakes hand (emphasis on perfect nails)
Internet Media Examples
Paid searches on Google.Banner ads on our retailers: ie Target/Big Box
storesOnline Shopping AdvertismentsOnline newspaper advertising
Outdoor Ad ExamplesThe outskirts of urban cities, and popular cities with dense
population.
PROFESSIONAL MANICURE NOW WITH O.P.I.
chose any color any style
Promotion
Sales promotions: Coupons (Get $1.00 off of a nail polish)Samples through the magazine adsPress Releases:Earned Media targets:Get on the blogger’s lists of recommended
productsHaul videos
Media Plan: Media ObjectivesTV ad - Grey’s Anatomy
Print Ads- per issue of Vogue
Billboards- in LA
Reach 30% of 9.4 Million = 2,820,000 viewers
50% of 1,002,961 readers= 501,480 viewers
18.2% of 10,017,068 people in Los Angeles= 1,823,106 viewers
Frequency 4 times for the 2,820,000 viewers
1 time for the 501,480.5 viewers
3 times (3 billboards) for 1,823,106 viewers
GRPs 30 * 4 = 120 GRPs 50*1= 50 GRPs 18.2*3= 54.6 GRPs
Media PlanMagazines: Full Page 4 color ad in every monthly issue (12X a year) $19,297,860 Full Page 4 color ad in every monthly issue (12X a year)
Self, Shape, Allure, Vogue, Elle, Glamour, InStyle, People (Standard Rate & Data Service)
Television 30 second commercial 7 times for each network: $8,395,310
AMC, Oxygen, Style, BET and CNBC.Outdoor Advertising Transportation (ie. subway, bus, taxi, airports):
$3,024,000ie: Albuquerque, NY 7 billboards for $1,200 each for 4 weeks. ($1,200*7) =8,400 *
12 months. x 30 locations
Online Banner Advertising: Amazon.com- cost per click range ($0.45 *1,000,000 clicks) : $4,500,000. Total Budget Recommendation: $35,217,170
Promotional Schedule
Mi
BibliographyAllure (2014). Consumer Magazine Advertising Source. SRDS Media Solutions database. Web. 30 Oct. 2014.
"Amazon Product Ads." - Drive Traffic to Your Website with Amazon's CPC Advertising Program. N.p., n.d. Web. 30 Nov. 2014.
"American FactFinder - Results." American FactFinder - Results. US Department of Agriculture, n.d. Web. 29 Nov. 2014.
Bibel, Sara. "Thursday Final Ratings: 'Grey's Anatomy', 'Scandal' & 'How To Get Away With Murder' Adjusted Up & Final Football
Numbers." TVbytheNumbers. N.p., 3 Oct. 2014. Web. 30 Nov. 2014.
Cosmopolitan (2014). Consumer Magazine Advertising Source. SRDS Media Solutions database. Web. 30 Oct. 2014.
"Coty Inc. Announces Executive Leadership Change."PR Newswire Sep 29 2014. ProQuest. Web. 9 Oct. 2014 .
Coty Inc. SWOT Analysis." Coty, Inc. SWOT Analysis (2014): 1-9. Business Source Premier. Web. 12 Oct. 2014
Elle (2014). Consumer Magazine Advertising Source. SRDS Media Solutions database. Web. 30 Oct. 2014.
"Essie: Nail Polish." L'Oreal Group. L'Oreal, n.d. Web. 15 Oct. 2014.
Glamour (2014). Consumer Magazine Advertising Source. SRDS Media Solutions database. Web. 30 Oct. 2014.
Bibliography“Hair and Nail Salons in the US" IBISWorld Industry Report 81211. July 2014. Web. 2 Oct. 2014
Instyle (2014). Consumer Magazine Advertising Source. SRDS Media Solutions database. Web. 30 Oct. 2014.
Mann, Rebecca. “OPI leads the way in global professional nail care boom.” Moodie Report. 2 Nov 2013. Web. 12 Oct.
2014.
Major Companies (Cosmetic and Beauty Products Manufacturing)." IBISWorld US. IBISWorld, 2013. Web. 12 Oct. 2014.
McCracken, Jeffrey. “Coty Said to Be Near Deal for Nail-Polish Maker OPI (Update1).” Bloomberg Business. 15 Nov.
2010. Web. 10 Oct. 2014.
"Mosaic USA Group and Segment Descriptions." (n.d.): n. pag. Applied Geographic. Experian Marketing Services, 2011. Web
"Nail Color and Care - US - January 2014: Brandshare- Nail Accessories and Implements." Mintel. N.p., n.d. Web. 15 Oct.
2014.
"Nail Color and Care - US - January 2014: Brand Usage." Mintel. N.p., n.d. Web. 15 Oct. 2014.
"Nail Color and Care - US - January 2014: Marketing Strategies." Mintel. N.p., n.d. Web. 15 Oct. 2014.
Bibliography"Nail Color and Care - US - January 2014: Shopping Behaviors." Mintel. N.p., n.d. Web. 15 Oct. 2014.
Nicole by OPI. (n.d.). Twitter-Nicole by OPI. Retrieved October 6, 2014, from https://twitter.com/nicolebyopi
“OPI Founder Schaeffer Exiting Post.” WWD: Women’s Wear Daily 206.108 (2013): 2-1. Business Source Premier.
Web. 15 Oct. 2014.
“OPI Products, Inc. Company Information.” Hoover’s. 2014. Web. 2 Oct. 2014
PATREON.com “Winter 2012 NHCS Adult Study 06-month.” Simmons OneView. Web. 15 Oct.2014.
Poggi, Jeanine. "TV Ad Prices: Football Is Still King | Media - Advertising Age." Advertising Age Media RSS. N.p., 20
Oct. 2013. Web. 03 Nov. 2014
"Revlon, Inc. SWOT Analysis." Revlon, Inc. SWOT Analysis (2014): 1-8. Business Source Premier. Web. 12 Oct. 2014.
"Revlon Products: Makeup, Fragrances, Hair Color, Nails, Beauty Tools."Revlon. N.p., n.d. Web. 12 Oct. 2014.
Romanowski, Shannon. "Delayed Flight? Paint Your Nails While You Wait - 30th July 2014." Mintel Academic. Mintel
Group, 30 July 2014. Web. 12 Oct. 2014.
Romanowski, Shannon. “Nail Color and Care – US – January 2014.” Mintel Business Premier. Jan 2014. Web. 10 Oct.
2014
Bibliography"TV Ad Prices: 'Idol' No Match for Football | Media - Advertising Age." Advertising Age Media RSS. Ad Age, 21 Oct. 2012. Web. 30 Nov.
2014.
Vogue (2014). Consumer Magazine Advertising Source. SRDS Media Solutions database. Web. 30 Oct. 2014.
"Vogue – Media Kit Print | Condé Nast." Condé Nast. Conde Nasr, n.d. Web. 29 Nov. 2014.