Sara Purisky, Rachel Cole, Janieva Mallory, Ashley McAdams

Agenda:

Company and Product Overview: Janieva

Competitive Analysis: Ashley

Survey Results: Ashley

Goals: Rachel

Marketing Strategy/Program: Rachel

Financial Projections: Sara

Monitoring and Control: Sara

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

Over 300 polishes

Higher quality
Chip resistant
Bright colors that catch the eye

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

Objective is to increase sales through celebrity endorsement

Lucy Hale (younger demographic)
Lupita Nyongo (respected, fashion icon)
Emma Watson (good press, international possibilities)

Each celebrity will be photographed in diverse scenes,

portrait style, displaying their signature Essie color

MY FAVORITE POLISH IS
DJ PLAY THAT SONG

Ad Campaign

WHATS YOURS?

emma watson for

Marketing Program
Recommended Media

Magazine Ads (3 magazines)

Seventeen (ages 16-18)
Cosmopolitan (ages 18-26)
Vogue (fashion conscious 18+)
Redesign Essie Website
Redesign In-Store Displays
Redesign e-Newsletter for Essie Insiders

Marketing Program
Proposed Budget

Photo Shoots for Ad Campaign ($50,000)

Ad Campaign Design ($20,000)
Celebrity Contracts ($6 Million total)
Magazine ads (3 mags)
$25,000 x 3 X 12 issues = ($900,000)
Website Redesign ($15,000)
In-Store Displays ($50,000)
New E-Newsletter ($8,000)
Increased Shelf Space ($1,000,000)

Total =
$8,043,000

Marketing Program
Public Relations Plan

Red Carpet Mani Cam Spotlight

Increased Presence on Social Media
Instagram
Twitter
Facebook

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

LOreal Projected Income Statements

(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

Monitoring and Control

December 2015: Check that all
drugstores have 40 shades
Use a random sample of 200
stores nationwide
Monitor visits to Essie website
Compare sales figures before and
after marketing program

Contingency Plans
Major Issues
Celebrity we choose has bad
PR or other issues
Stores refuse to increase
amount of Essie shades

Thank you!