mode marketing presentation
TRANSCRIPT
MODE Cosmetics
By Kathryn, Christie, Ploy and Sophia
Contents• Introduction• Marketing Mix for Liquid Foundation• Marketing Mix for Nail Polish• Budget• Conclusion• Bibliography
MODE Cosmetics
Introduction• Manufacturer of cosmetics
• Founded and headquartered in Sydney, Australia.
• The higher end of the cosmetic market
• Mid-high income female customers between the ages of 18 – 30 years old
• Variety of cosmetic products
• Available in retail counters and online
Marketing Mix - FoundationFoundation Product Price Promotion Placement
ObjectiveTo dominate market share of the
Liquid Foundation sector by 60% by June 2012.
To set price of MODE Liquid Foundation 10% higher than competitors
by November 2011.
To increase sales of MODE Liquid Foundation by 20%
by January 2012.
To increase distribution channels of MODE Liquid
Foundation domestically and internationally by 30% by June
2012.
StrategyTo introduce a unique dispersible
liquid foundation pen.To source and change to a
more reliable supplier.
To create a new Television advertisement with a
celebrity endorsement.
To create an online store on MODE’s website that enables domestic and international
customers to purchase MODE foundation.
Performance Measure
To compare data gathered from ABS in regards to the industry income of beauty products and the income generated by Mode, between the
annual period of July 2011 and June 2012.
Compare Liquid Foundation prices of
competitors against MODE Liquid Foundation.
The sales during the advertised period
exceeding the budget for advertising.
Compare online sales with in store sales between January
2012 and January 2013.Analysing sales before the new advertisement and
after.
Corrective Action
To introduce another new unique design of packaging for MODE
Foundation.
To change pricing method by setting price in line
with competition.
To change the method to personal selling by
providing free samples and Make-up demonstrations in
retail counter set up in David Jones.
Analyse data collected from purchases through MODE online store and open up 2 – 3 counter stores within an international
department store (such as Nordstrom’s in the US and
Harrods in the UK) in the most popular sales countries.
MODE Cosmetics
Marketing Mix – Nail PolishNail Polish Product Price Promotion Placement
Objective
To limit sales returns to 2% of the overall sales in an
annual year for Nail Polish’s by the end of 2012.
To set price of MODE Nail Polish 30% higher than
original price from December 2011 to January
2012.
To increase target market awareness of MODE Nail
Polish in Australia from 50% to 75% by January 2012.
To increase the number of product locations by 25% by
June 2012.
StrategyTo change existing
manufacturer to a more reliable source.
To change the price from $22.95 to $29.95.
To liaise with a PR Company to promote and encourage
purchase of the Liquid Foundation by gaining an
editorial in the top 3 Fashion Magazines such as Vogue
and Harper’s Bazaar.
To target the Department chain stores of David Jones
within Australia.
Performance MeasureTo compare actual records
of returned Nail Polish’s from 2011 and 2012.
To cover costs of PR advertising and the change to a more reliable source.
Evaluate the number of people who called up the
number in the various magazines to purchase the nail polish over the phone.
Evaluating the results of a Survey on the online
website, asking viewers where they purchase MODE
Nail Polish.
Less sales but more profit within 3 - 6 months since
introduction.
Corrective ActionTo discontinue the
manufacturing of the Nail Polish.
To set price 10% lower than strategy price of $29.95.
To change the method of increasing awareness to
advertising on Television on channels such as Channel 10
and Fashion TV.
To discontinue distribution of the Nail Polish in David
Jones and increase distribution for the most
popular location based on the survey conducted.
MODE Cosmetics
Sales Forecast 2012
MODE Cosmetics
PRODUCTAVERAGE MONTHLY
QUANTITYAVERAGE SALE PRICE PER
UNIT AVERAGE MONTHLY SALES ANNUAL SALES
Nail Polish 91 $22.9591 x $22.95
$25,061.40= $ 2088.45
Liquid Foundation 61 $45.9561 x $45.95
$33,635.40= $2802.95
TOTAL: $58,696.80
LESS 10% FOR GST $5,869.68
REVENUE $52,827.12
Annual Budget 2012
MODE Cosmetics
MODE Cosmetics
Conclusion
The Company would be successful applying the Marketing Mix objectives because…
Bibliography
Le Vernis, Chanel, 30/08/2011, http://www.chanel.com/en_US/fragrance-beauty/Makeup-Nails-LE-VERNIS-89314 OPI Nail Polish, Catwalk, 30/08/2011, http://www.catwalk.com.au/o-p-i-nail-lacquer/o-p-i-nail-polish-japanese-rose-garden/w1/i1031932_1031917/ Mac Nail Lacquer, Beautyheaven, 30/08/2011 , http://www.beautyheaven.com.au/hands/nail-care-treatments/25051-mac-nail-lacquer-in-steamy Max-Factor Lasting Performance Liquid Foundation, Beauty heaven, 30/08/2011, http://www.beautyheaven.com.au/make-up/foundation-primer/15877-max-factor-lasting-performance-liquid-foundation Studio Fix Liquid Foundation, Mac Cosmetics, 30/08/2011, http://www.maccosmetics.com.au/product/shaded/158/1231/Studio-Fix-Fluid-SPF-15/index.tmpl Foundation for different skin types, Beauty Advices, 30/08/2011, http://www.beauty-advices.com/a-list-of-the-best-foundations-for-different-skin-types-on-the-market/ Miranda Store, David Jones, 6/09/2011, http://www.davidjones.com.au/stores/Miranda
MODE Cosmetics