MKT 412: Product Case Presentation

Jenna Thompson, Lainie Radigan, and Meagan Quigley

 Agenda
I. Company Scenario
II. Market Research & Analysis
A. Competition
III. New Product Selection & Generation
IV. Product Innovation Charter
V. Concept Evaluation
VI. Development
A. Technical
B. Marketing
VII. Launch Plan
Company Scenario
Current product portfolio:
Eye shadow
Foundation
Blush
Fragrances
Losing market share at local retail outlets
What should AMJs next product be?
Market Research & Analysis
Trends:
Combining skin care benefits with
beauty cosmetics
Natural look (Korean influence)
Botanical oils
Premium outperforming mass
products
Millennials drive color cosmetics
Hobby, artistic self-expression
Dont sacrifice quality for
quantity
Social media/online influence
Future predictions:
Adventurous/bold colors
Bright lip sticks
Other eye makeup continued
growth
Defined eyebrows=long term
trend
Oil-based products
Market Research & Analysis
Competition
Company Name % Color Cosmetics Value Share

LOreal USA Inc 22%

Estee Lauder Cos Inc 20.2%

Procter & Gamble Co 7.8%

Coty Inc 5.3%

Revlon Inc 5.0%

Mary Kay Inc 3.9%

Colour Cosmetics in the US

Euromonitor International, 2016
Consumer Survey
Top 3 most important cosmetic products:
1. Foundation
2. Eye makeup
3. Lip sticks
Top 3 eye makeup products:
1. Mascara
2. Brow pencil
3. Eye shadow
New Product Selection & Generation

Need/Benefit: Form:
High quality brow Produce sleek brow
pencil at convenient pencil distributed in
retail locations local retail outlets

New
Product

Technology:
Similar manufacturing
process to existing
eyeshadow
machinery
New Product Selection & Generation
AMJ BrowDefiner- Brown, Light Brown, Blonde
Compliments eye shadow products
Growing, opportunity market
Un-saturated market in local retail locations
 Product Innovation Charter
AMJ is a mid-premium cosmetics company, founded in 2012. Thus far, its product
d
backgroun

portfolio consists of eye shadows, foundation, blush, and fragrances. Recently it

has been losing market share in local retail locations to brands including
Maybelline and Covergirl. Due to the rising--and predicted increasing--success of
brow makeup, AMJ will use manufacturing technology similar to already existing

Focus
eyeshadow tools to create a brow pencil. This will come in three shades to adjust
to all brow types, and target trend-conscious women ages . AMJs overall goal is
to increase market share in local retail locations, and strictly compete with
Goals & Guidelines

Maybelline and Covergirl brands. To work out any pre-launch flaws, products will
go through market testing 3 weeks prior to the launch. Launching in June of 2017,
AMJ aims to increase market share in local retail outlets by 10% by June 2018.
Brow makeup and overall makeup sales in such outlets will be evaluated after 1
month, 6 months, and 1 year to track results.
Concept Evaluation
Assessment Criteria:

UNIQUENESS NEED FULFILLMENT FEASIBILITY

IMPACT SCALABILITY STRATEGIC FIT

Concept Evaluation: Financial
Sales forecasting: new-to-the-firm product
Scenario & what-if analyses
Use data from similar product
Consumer packaged good will have late expenditures curve
Lower technical costs, higher marketing costs
Percent of
Expenditures

Launch

Percent of time Spent

Development: Technical

Slowly Scale up production

Design/Compose chemical
for product and Market
formula for brow pencil
Testing

Design and validate best

Test and Validate Prototype production process for
prototype
Development: Marketing
Product: differentiation strategy
Higher price justified by higher quality
Lower price than luxury brands
Convenient to purchase (local outlets)
Pricing: slightly higher than competitors to emphasize better quality
Aligned with current prices of product portfolio
Placement: next to competitors in local retail locations
Development: Marketing

AMJ Brow Definer

$12.99

- High quality
- Convenient locations
- Mid-market price
Development: Marketing
Promotion: aggressive advertising via social media and magazine
print ads
Partner with major Instagram influencers
Giveaway contest leading up to launch to spark excitement
Instagram contest:
How do you #DefineYourBrows?
- Weekly giveaway 3 weeks prior to
launch
- Emphasize BrowDefiner as a
cost-efficient product for premium
results
Development: Marketing
People: women between the ages of 18-24
Aware of style and beauty trends
Willing to spend for quality color cosmetics
See cosmetics as outlet for art/self expression
Influenced by social media
Launch Plan
AMJ BrowDefiner - June 2017
Roll out moderately--increase market share in local outlets by
June 2018
Aggressiveness
Type of demand sought
Competitive advantage sought
Competitive relationship
Image--using already existing image
Social media campaign
Packaging
AMJ BrowDefiner
Natural look for a bolder you
Box
Consistent look/feel as existing products
Clearly marked for each color
Brown, light-brown, blonde
Promotional makeup bag for exclusive clients
YouTubers/Instagrammers
Samples of existing products
Feature the AMJ BrowDefiner
Locations
Available at local retail locations
Target
CVS/Walgreens
Harris Teeter/local grocery stores

AMJ Cosmetics display

Displayed next to existing AMJ products
Featured as NEW product
Social Media
Snapchat:
Geofilters
Ads
Instagram:
Sponsored posts/endorsements
Contests
Ads
YouTube
Sponsored videos/endorsements
Send packages of products to popular
YouTube Stars
Conclusion
AMJ BrowDefiner
Natural look for a bolder you
Meets PIC and company objectives
Compliments current product portfolio
Projected sales will increase market share and profit
Lasting trend--increasing future market, not strictly seasonal
Questions?
Works Cited
Crawford, C. M., & T., D. B. (2011). New products management. Boston: McGraw-Hill.

Este Lauder Official Site. (n.d.). Retrieved December 04, 2016, from
http://www.esteelauder.com/

Colour Cosmetics in the US. (2016, April 27). Euromonitor International. Retrieved
December 5, 2016, from Passport.