Integrated Marketing Communications

Promotional Plan

Paige Beaufort
Andrea Lewis

Table of Contents
Part I: Company Profile…………………………………………………………………………3
Introduction………………………………………………………………………………3
Business Model…………………………………………………………………………..4
Products…………………………………………………………………………………..5
Location…………………………………………………………………………………..6
Target Market…………………………………………………………………………….6
Image…………………….……………………………………………………………….8
Goals……………………………………………………………………………………...9
Part II: Promotion/IMC Planning……………………………………………………….……….9
IMC Objectives…………………………………………………………………………..9
Situation Analysis……………………………………………………………………….10
Promotion/IMC Mix…………………………………………………………………….12
Magazines……………………………………………………………………….13
Sponsorship……………………………………………………………………...14
Social Media/Online Advertising………………………………………………..15
Direct Mail Catalog……………………………………………………………...17
Promotion Timeline……………………………………………………………………...17
Part III: Promotion/IMC Budget………………………………………………………………...17
Method of Budget Allocation……………………………………………………………17
Magazine Budget………………………………………………………………...17
Online Advertising Budget………………………………………………………18
Sponsorship Budget……………………………………………………………...19
Direct Mail Budget………………………………………………………………19
Six-Month Promotion Budget……………………………………………………………20
Budget Allocation………………………………………………………………………..21
Part IV: Creative Strategies and Execution ……………………………………………….…….21
Discussion of Creative Strategies ……………………………………………………….21
Sources of Inspiration……………………………………………………………....…....24
Part V: Promotion/IMC Activities and Materials………………………………………..…..….25
Promotion Prototypes……………………………………………………………………25
Harper’s Bazaar Advertisement…………………………………………………25
Facebook Advertisement………………………………………………...……...26
Direct Mail Catalog Cover………………………………………………..…….27
Direct Mail Catalog Table of Contents……………………………………..…..28
Discussion of Prototypes……………………………………………………………..…29
Part VI: Evaluation of Promotion/IMC Plan……………………………………….…………..30
Methods and IMC Objectives………………………………………………………...…30
Promotion Budget…………………………………………………………………...…..32
Strengths and Weaknesses, Overall Plan……………………………………………......33
References………………………………………………………………………………………..35

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PART I: COMPANY PROFILE

Introduction

Ren was founded ten years ago when two women wanted to develop a solution for

widespread frustrations with beauty care. At its core, the company addresses three main concerns

with the current industry. For one, there is a significant risk associated with branching out and

trying a new beauty product. With a wide range of skin types, complexions, and coloring, there is

a huge potential to purchase something unflattering. Even worse, heavily processed products

could cause an irritating breakout or allergic reaction. A third concern is that once one finds a

product they like, it can be hard to find that product again with the swiftly changing assortments

of modern makeup lines. Thus, the cycle starts over again. Ren is built around solving these

problems, from its business model to marketing strategies.

Ren is a benefit corporation, meaning that it operates legally as a for-profit business, but

it has a non-profit style focused on positive social and sustainable contributions. Goals of

supporting people, planet, and profit are built into the structure of the business and is another

element to promise transparent and responsible corporate actions.

Furthermore, Ren’s mission statement is:

To be the nation’s most empowering and transparent beauty

company, for both people and the planet, through a world class

client experience.

This mission statement speaks to the need for Ren to work with integrity, and with an

extreme focus on the needs of the consumer. The company approaches sales by making the

experience tailored and convenient to each individual, and therefore put the power in their hands

in an era of online shopping. In addition, by focusing on natural products, responsible testing

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methods, and clean production systems, the organization works towards its duty to protect the

earth. It is through these core principles that Ren strives to be a top beauty company.

Over the course of ten years, the company has reached annual sales of $50 million. Ren

is targeting about 9.6 million women of middle to upper income ages 25 to 55 (“Age and Sex,”

2012). Of those 9.6 million women, the company has a wide presence in many Mountain West

and West Coast states, securing about 90,000 active profiles, or one percent of our target

market. Based on a comparison to Avon’s sales and the difference between the sizes of each

company, Ren’s market share of the direct selling cosmetic industry would amount to be about

one percent. Though this may sound very small, the company continues to experience growth

with a bright future.

Business Model

Ren’s unique business model is filling a niche in the beauty world. When a consumer

joins Ren, they are encouraged to meet with a consultant and create a profile focusing on their

personal beauty needs, skin type, experience with makeup, and complexion/coloring throughout

the year. This profile is free to make, and theirs to alter and update online throughout their

experience with Ren. Based on the profile, the consumer is matched with Ren’s all-natural, high

quality products that will fit their needs and chemistry.

From here, the service becomes subscription based, where the consumer can receive a

box of their basic beauty products every three to six months to replenish their favorites. This

keeps the busy, thriving target market from having to take the time to hunt down new versions of

products that may or may not work. Consistency in this area will be key, as well as accounting

for needs that come with a change of season. Consumers can always change their profile and

request one-time items that will be added to their box or sent to them separately, keeping in mind

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holidays and special events. Users will also always have the option of more in-person

consultations if they prefer that method to the online management of their account. Overall, Ren

works to make getting natural and sustainable beauty products effortless, and creates an

empowering experience for women to find products that work.

Products

Ren markets cohesive product lines that focus on skincare and makeup. Many of these

products are beauty basics including moisturizer, cleanser, toner, primer, foundation, concealer,

lip balm, etc. that are formulated to best meet certain consumer profiles. Users will be matched

to the products that work best for their unique attributes, and then be able to add extra product to

their orders as their needs change. Lines of lipsticks, blush, eyeshadow, and more allow the users

to customize makeup to their personality and coloring, not just their basic needs. In accordance

with the founder’s reasons for creating Ren, product changes will always be improvement

updates. This will allow customers to have consistent access to the products that work for them,

unlike the experience with many other makeup companies.

As previously stated, a large part of this company and products is the service through

which goods are distributed. Clients are encouraged to have a consultation with a certified

cosmetologist from which they build an online profile that they can update for the duration of

their relationship with Ren. The service will operate on a subscription basis where the user can

determine how often they would like to receive a refresh box of their basic, core makeup and

skincare items. This saves both time and energy for women who have found something that

works and do not want to struggle with the highly saturated market of ever changing cosmetics.

This box will come to them automatically, but they can also take the time to request expansions.

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Location

Though this company does not have a physical store location that patrons can visit, Ren is

headquartered out of Seattle, Washington and employs over 100 consultants across the Western

Region of the US. These consultants are certified in cosmetology and act as an initial contact

point for consumers. Unlike many other beauty companies, these experts are not part of a

pyramid structure, but direct partners of Ren who receive benefits and do not subsist off of

recruiting or commission. This is another transparent element of the company that exhibits its

roots of social responsibility. The company has previously only served the Western region but is

hoping to expand long term.

Product manufacturing processes take place within the United States of America, in the

Kennewick-Pasco-Richland area in Washington. Close to the Seattle headquarters, this location

is one of the top places for manufacturing in the U.S. according to Forbes Magazine (Kotkin,

2015).

Target Market

Ren’s key customers are adult women between the ages of 30 and 55. These women

likely have some form of higher education, either a bachelor’s or master’s degree. They are

married or unmarried and may be tending to families and/or their careers. In a broader sense, Ren

hopes to appeal to younger women (age 17 and up) as well; the company focuses on the slightly

older demographic because of their financial influence on younger women, as well as their stable

socioeconomic standing. Reaching a younger demographic is a direct result of connecting with

their older, influential counterparts. Presenting mothers with quality products will likely draw in

their daughters or other young family members.

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According to the Bureau of Labor study reported by NPR, average annual household

income levels for U.S. adults according to age differs as follows (Thuy Vo, 2012):

Average Annual Household Income by Age

$90,000

$80,000

$70,000

$60,000

$50,000

$40,000

$30,000

$20,000

$10,000

$0
Under 25 25-34 35-44 45-54 55-64 65+

Based on these statistics, the target consumers for our luxury yet accessible products have

a yearly household income above $65,000 per year. This number may shift slightly depending on

the locale of consumers and the corresponding cost of living, but in general this number allows

for the disposable income necessary to consistently purchase organic, natural, U.S. produced

makeup and skincare products. Additionally, subscribing to this product requires internet access

as well as some free time in which one is able to set up a profile and have a consulting

appointment. Higher education and salary-based jobs indicate access to these basic requirements.

The psychographics of the target market have much to do with values as well as the way

these women choose to spend their time. Ren aims to reach those who are disheartened by

artificial, toxic, cheap products. The women who indulge in Ren realize that it is time to treat

their skin well, while acting environmentally responsible. They have established beauty routines

and prefer consistency in their products and an ease of use. They are ambitious, with high

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expectations for themselves as well as those they spend their time with. These users value their

time and put their all into their engagements- whether that is work, higher education, community

involvement, or time with their families and loved ones. With an emphasis on living well and

doing well, Ren and its core target market operate around this ideology. Furthermore, Ren

focuses on this lifestyle, and how to apply attainable health and beauty to the real responsibilities

these women embark upon every single day.

Image

The name “Ren” is a Swedish word that means “pure” or “clean”, ideas that are essential

to this brand. This idea comes across in the imagery as well as the actions associated with Ren.

The sustainable and environmentally friendly aspects follow suit, and are a part of both the

products and the way that they are exhibited. As a benefit corporation, it also encompasses

charitable aspects, and a sense of loyalty to the environment and all those that exist within it—

plants, people, and animals. By creating a tailored experience through consulting and a

sophisticated online profile system, the company presents a personalized and down to earth

personality. This is an organization that treats their consumers like individuals and takes care to

create a safe space for concerns and needs.

The imagery of Ren’s logo is in accordance with this branding. The elegant and simple

typeface is scripted in a rich, deep green to reference nature. Intertwined within this writing is a

woman’s silhouette in a dusty rose pastel color. The simplicity and juxtaposition of these two

colors shows the earthy and natural aspects of the brand. Two lilies, signifying purity and the

word “Ren”, are draped in the hair of the woman with a sense of femininity empowering women

with the grace of nature.

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Goals

Ren’s long term business goals, to be completed in the next three to ten years, are to:

Introduce a natural hair care product line complementary to other beauty products

in order to diversify the product assortment.

Expand into the global market, giving Ren the ability to compete with other

worldwide beauty and consultation services. Serve consumers internationally in

accordance with the company’s mission statement.

Donate one million dollars to the Natural Resources Defense Council.

Improve production systems by becoming a zero-emissions company.

Ren’s short term business goals, to be completed in the next one to three years, are to:

Expand into Eastern United States, establishing a presence in New York,

Pennsylvania, Virginia, North Carolina, Massachusetts, and Connecticut.

Start a loyalty program that rewards frequent or long-term users as well as honors

special occasions such as customer birthdays and anniversaries of their Ren

membership.

Increase Ren’s consistent customer base by 5 percent.

Increase Ren’s consultation staff by 10 percent in order to compensate for

increasing demand.

PART II: PROMOTION/IMC PLANNING

IMC Objectives

1. Increase new user profiles on Ren’s online ordering service by 5 percent within the next
six months.

2. Reach 500 consulting appointments in the Eastern U.S. region within the next six months.

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3. Retain 60 percent of current Ren customers through the next six months.
Situation Analysis

Mary Kay is a direct competitor to Ren in the direct selling cosmetics industry, and

relying heavily on word-of-mouth has been the primary source of marketing for this industry for

50 years- until recently. With the significant development of technologies, many direct selling

companies have had to transition to an online focused environment. Though Mary Kay was a

little delayed in this transition, introducing its website along with a YouTube channel, Facebook,

Twitter, e-catalog, and a virtual makeover platform has significantly increased the company’s

sales and presence (Bruelle, 2011). In 2014 there was report that 76 percent of females have

Facebook profiles, suggesting as an effective way to reach more of Ren and other cosmetic

companies market (Guimaraes, 2014). Another powerful and popular media channel for beauty

products are bloggers.

As mentioned, this direct sale industry grew from the strength of word-of-mouth, and this

influence is only getting stronger through the Internet. About 60 to 80 percent of influence is

responsible to only 5 to 10 percent of social media users. This means this 5 to 10 percent of

opinion leaders and avid social media users have significant power to connect with the large

number of people using the internet (Bilkova, 2015), and this number is not limited to younger

markets, but plays a large role in women ages 30 to 40 (Tyrimou, 2015). Forty-one percent of

consumers use blogs as one of their top three sources regularly before purchasing a product, and

80 percent use blogs as a resource in beauty product recommendations (Bernstein, 2011). While

bloggers are a big hit, celebrities only influence on average 15 percent of consumers on beauty

product purchases, and the number is lower in the United States (Tyrimou, 2015). Just as

consumers are looking for trustworthiness, credibility, attractiveness, and expertise in celebrity

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endorsers, consumers also look for these attributes in bloggers as well. However, bloggers

already have an upper hand because consumers see bloggers as “one of them,” increasing their

trustworthiness. This also allows brands to have a wide variety of options for bloggers, being

able to carefully choose bloggers who best represent and connect with the brand's specific

market (Jones, 2014). In addition, bloggers showcase their expertise by showing how products

can be used either through images or videos. Brands are taking advantage of this new promotion

asset and many are teaming up with specific bloggers that have a high reach and lead as well

informed opinion leaders. Another cosmetic competitor, Estee Lauder, teamed with Emily

Schuman to increase brand awareness to makeup users and showcase the products (Bilkova,

2015). This new promotion technique is not only successful for beauty brands, but it has been

experimented with fashion, magazine brands, and other industries as well, and its influence is

only expected to rise (Tyrimou, 2015).

Though the popularity of bloggers may rival magazine ads, magazines are still presented

as effective mediums, especially for beauty brands. In general, magazine ads have been proven

to have a high sales response and return on investments. Magazines allow for selective targeting,

advertising brands that appeal to the readers’ interests and passions while also reaching more

valued consumers with high purchasing power. Consumers have rated magazines to be the most

informative medium gaining consumer engagement, and typically are seen as more credible

sources (Canadian Magazines, 2014). One of Ren’s leading competitors, Avon, questioned

whether to discontinue print ads and promote primarily online, and decided against the idea. The

company found people paid more attention to print ads, and they are using magazines for

celebrity news and fashion advice more than online sources, more often. Print is still the number

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one trusted source for beauty and fashion, making it ideal for beauty brands to advertise in (Ives,

2009).

Lastly, another form of promotion effective for cosmetic companies is big event

sponsorships. Sponsoring TV shows, fashion shows, and other events or parties focused around

beauty or fashion is a good way for brands to not only increase awareness, but also showcase the

products in action. Mary Kay offers as a good example when the company decided to

collaborate with the show Project Runway. The show is about fashion design and execution, but

also implies the importance of styling with hair and makeup to complete a look, and this is where

Mary Kay’s efforts come into play. One of the company’s top global makeup artist appears on

the show to do makeup consultants with each designer using only the range of Mary Kay

products for the entire look. The promotion does not stop there. Active fans and viewers of the

show can then find more information on the company on the cable network and TV shows’ web

pages, and consumers can interact through voting systems and the Mary Kay virtual makeover

app (Gianatasio, 2014). Sponsorships is an important trend for future marketing as the

popularity of other promotion channels are always changing.

Promotion/IMC Mix

Ren will be employing a variety of traditional and nontraditional advertising media

vehicles in order to achieve the company’s integrating marketing communication objectives. The

media mix that has been selected for this particular campaign creates a cohesive and synergistic

approach to Ren’s simultaneous expansion and retention plans. Magazine advertisements,

sponsorship collaborations, online/social media advertising, and select direct mail through

catalogs will be the main media channels that will reach Ren’s target audience.

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Magazines

Magazine advertising is traditionally expensive, yet in order to compete with both high-

profile beauty companies as well as drugstore brands, it is necessary to have a presence in this

medium. After careful examination of multiple magazines and their circulations, the Ren

marketing team has determined both Redbook and Harper’s Bazaar as good fits for this product.

Both of these publications have received high ratings and acclaim for quality content among

sophisticated adult female readers.

Redbook’s media kit asserts that the focus of the magazine is on women age 25 to 54, in

direct alignment with the target market of Ren. This monthly magazine has 4,687,000 readers

age 35 and older who largely make a salary over $50,000, own homes, and are the principal

shoppers within their households. With 20,119,547 paid subscriptions, Redbook offers

advertisers the ability to do geographic split runs. This will both lower the cost of the

advertisement as well as allow Ren to target the audience in the East coast locale. With a direct

path to the East coast region, this will contribute to the achievement of Ren’s expansion IMC

objective with no wasted impressions (“AAM Statement,” 2014),

Harper’s Bazaar is another established publication that reaches a mature audience with a

median reader age of 40.6 years old. A majority of 78.3 percent of readers are between the ages

of 18 and 54. As stated in Harper’s Bazaar’s media kit, the magazine delivers to affluent,

educated, professional women,” a claim backed up by reader demographic statistics. The amount

of readers with some level of college education is impeccable at 94.4 percent. Circulation is very

high within cities that subsist within Ren’s current and desired consumer base. The magazine’s

number one city of readers is New York at 82,266 readers, with Los Angeles, Philadelphia, San

Francisco area, Washington D.C., and Boston all in the top ten. Therefore, using Harper’s Bazaar

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is a productive channel of advertisement to further loyalty and gain presence in the Eastern

region. In the headquarter state of Washington, a circulation of 13,414 has been verified.

Reaching this crowd is essential to competing with other beauty brands at all price points, many

of whom are already advertising in Harper’s Bazaar (“Harper’s Bazaar Media Kit,” 2015).

Sponsorship

A way to show the quality products and the brand personality of Ren is to engage in

sponsorship and collaborations. In the beauty world, collaborating with a brand ambassador is a

digital-age endorsement that reaches large amounts of loyal followers. According to Luxury

Daily, a hub for the marketing industry for luxury goods, beauty bloggers “have large followings

that can rival magazines, creating an opportunity for luxury brands to reach a large, fashion-

focused audience” (Jones, 2014). The presence of video tutorials, written reviews, and private

websites in the online world have changed the way consumers learn about makeup. As reported

by Harper’s Bazaar last August, beauty bloggers delivering a genuine and accessible review

often lead to more online sales that celebrity endorsements (Hewitt, 2014). In addition, blogs

have the ability to be reached and read all over the world. Though Ren does not plan to expand

globally for another 5 to 10 years, this could be the beginning of gaining interest abroad before

even entering the global market. Ren has identified two high-level makeup blogs that match

both the company’s target market and overarching brand image. The marketing team employed

the celebrity endorsement effectiveness factors to determine these outlets. The following

bloggers have expertise in the form of long-running blogs, credibility, and trustworthiness from

the eyes of their large numbers of subscribers and magazine citations, attractiveness for the

beauty industry, and power gleaned from all of these items.

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Marianna Hewitt is a TV host turned blogger with a YouTube following of 146,452

subscribers. She is 29 years old, meaning she creates content that appeals to both younger users

as well as adult, sophisticated, professional women. Hewitt is from Los Angeles, where Ren has

been a resident brand for nearly a decade, making her a genuine representative. This blogger is

open to brand collaborations and offers tutorials and reviews with a personality behind them.

Gaining approval from this highly regarded blogger will raise awareness about Ren on a national

scale, as well as appeal to those within Ren’s target market.

Elizabeth Dehn reaches a much different but equally essential market than Marianna

Hewitt. Her website, Beauty Bets, was founded in 2009 “as a way to share candid product

reviews and real beauty advice for smart women everywhere,” according to the website’s

“about” page (Dehn, 2015). Dehn writes intelligently about beauty products that are based in

wellness and organic, natural ingredients making it a perfect match for Ren’s lifestyle image.

Approval from this blogger will raise awareness and certify Ren’s products as good-for-you

skincare items and cosmetics.

Social Media/Online Advertising

As online advertising evolves, platforms like Facebook and Google AdWords present

advertisers with sophisticated benefits to effective digital advertising. Both of these media

vehicles offer sophisticated consumer targeting algorithms, a cost-effective audience reach, and

the ability to analyze, evaluate, and adjust results throughout the campaign.

Facebook’s demographics are maturing, which makes it a great way to reach Ren’s target

demographic. Statistics in 2014 show that Facebook users skew more towards females, with 76

percent of women in the U.S. having profiles (Guimaraes, 2014). Additionally, 68 percent of

people who make $50,000 to $74,999 per year and 69 percent of people who make over $75,000

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per year are Facebook users (Guimaraes, 2014). This is a huge potential selection of the target

market, and a great opportunity to seek out those who would be interested in learning about Ren.

User age demographics break down in the following way, according to Adweek (Monteiro,

2015):

2015
Facebook Age Demographics

25-34
20%
Other
41%
35-44
16%

45-54
23%

Through Facebook’s targeting capabilities, Ren will be able to limit its reach

geographically, by gender, and by psychographic as related to consumer interests.

Google Adwords functions in a similar way regarding consumer targeting, but ads will be

able to follow users all over the internet. Google will be able to determine the target market

based on the profile that consumer has built throughout their history on the internet, making it

extremely accurate and accessible. Ren will be able to set a spending limit as well as goals for

the ads that will work in accordance with the IMC objectives. In combination with Google

analytics, this platform will be a great way to learn more about the audience, raise awareness,

and get the message to a specified audience.

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Direct Mail Catalogs

Directly mailed catalogs are a costly advertising choice, but for a lifestyle brand like Ren,

catalogs are a way to draw loyal customers and present real value. This tactic will be employed

to retain customers who have Ren profiles and have previously placed orders. A catalog will be

released every six months—one in February to present the Spring/Summer key products, and one

in August that focuses on Fall/Winter skincare and makeup needs. To present value to the

consumer, these catalogs will not only showcase products, but also include tutorials on how to

use them, potential color combinations, wellness tips, company written essays and research, and

suggestions for various profile types. The intent of this advertising media is to build brand

loyalty and increase repeat purchases from Ren members.

Promotion Timeline
Six Month Promotional Schedule
Aug-16 16-Sep Oct-16 Nov-16 Dec-16 Jan-17
Magazine
Advertisements
Redbook
Harper's Bazaar
Social Media
Facebook
Google Adwords
Sponsorship
Elizabeth Dehn
Marianna Hewitt
Direct Marketing
Catalog Distribution

PART III: PROMOTION/IMC BUDGET

Method of Budget Allocation

Magazine Budget

Magazines are, by far, the most costly aspect of this campaign. Advertising in this

medium will absorb 85.77 percent of ad expenditures. However, the cost for even partial page

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advertisements in these magazines are extremely high compared to other media vehicles that will

be employed by Ren, costing hundreds of thousands of dollars. It is absolutely necessary to

advertise in this medium despite the extreme cost, solely based on the way competing cosmetics

and beauty companies promote.

Redbook’s rate for one half-page, black and white advertisement is 147,525 dollars

(“Redbook National Ad Rates,” 2015). Harper’s Bazaar, Ren’s other chosen magazine outlet,

charges 110,010 dollars for each half-page colored advertisement (“2016 Advertising Rates,”

2015). Both of these publications print ten magazines per year, and therefore five within the six

month time period that this campaign will be active.

Online Advertising Budget

The cost of online advertising on platforms such as Facebook and Google AdWords is

determined by a bidding system within the industry of the advertising company. When the price

of an ad is determined on a competitive basis, the company bidding for the ad can set a spending

limit for the amount of ads that they would like to run that day. The beauty industry has one of

the highest click through rates on Facebook, with a rate of 0.433 percent. This is positive proof

that makeup, skincare, and other beauty ads have high follow-through and impression success on

social media. The average cost per click within this industry is 36 cents, and the average cost per

impression is one dollar. From this point, the cost to truly bring customers into a profile page and

attain a ‘like’ is 1.17 dollars (“The Facebook Ads,” 2013).

Ren is attributing 406 dollars per day to both Google Adwords and Facebook advertising.

That is a total of 74,474 dollars for each medium over the period of six months. This amount of

advertising will ensure that Ren’s current market areas as well as its expansion zones are

saturated with online communication. This audience will effectively be reached through both

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social media and other areas of the internet within Google AdWords’ jurisdiction for a total of

9.93 percent of the total advertising budget.

Sponsorship Budget

Gaining endorsements on beauty blogs is powerful in the changing world of promotions,

but it is also cost effective for a company like Ren. As related to the following of the blogger as

well as their personal preference, there is likely a fee to gain a review, to post sponsored content,

or to blog on the brand’s behalf. One of Ren’s blogger selections, Marianna Hewitt, has 146,452

YouTube followers, which means she likely requires a fee nearer the top of the 100 to 1,000

dollar range for reviews (Nanji, 2013). Ren has estimated this cost at 750 dollars per review, plus

the cost of product that will be supplied (100 dollars per review). Therefore, Hewitt’s

endorsement will cost 4,250 dollars over the span of six months. Elizabeth Dehn of Beauty Bets,

however, does not charge companies to review the products, making the cost of her endorsement

only the cost of the products sent to her. With a total of 4,750 dollars allocated to sponsorship,

this effective media vehicle uses only 0.31 percent of Ren’s total advertising budget.

Direct Mail Budget

The catalog that Ren distributes twice a year is a work that blends lifestyle content and

branded seasonal product promotion. In order to compare with catalogs from competitors, this

catalog will be around a 30 page marvel in full color. In accordance with the brand’s values, the

interior paper is recycled. However, to give it the quality and feel of a luxurious magazine, the

cover pages will be heavy, glossy paper. After several estimates of shipping and printing costs,

the best service was determined to be PsPrint, an online printing company that specializes in eco-

friendly practices and customer service. In addition, PsPrint also has a delivery service, which

cuts down on both costs and distribution steps for Ren. In order to print and send 40,000 catalogs

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for Ren’s most recent and active consumers, the cost was estimated to be 59,992 dollars, about

1.50 dollars per catalog. This would take up about 4 percent of Ren’s advertising budget.

Six-Month Promotion Budget

After looking carefully at the budgeting methods and financial statements of similar

companies to Ren, the marketing team has determined an advertising budget that is 3 percent of

yearly revenue will be effective and realistic for this campaign.

Researching comparable companies with similar ideology, and scaling it down to the

client basis that Ren is currently serving determined Ren’s estimated annual revenue. Origins, a

company with similar products as Ren under the umbrella of Estee Lauder brings in yearly sales

of 88 million dollars to this parent company (Estee Lauder, 2011). Similarly, Physician’s

Formula makes a yearly revenue of 80.94 million dollars and retains a reputation as an affordable

drugstore organic makeup company (Physician’s Formula, 2011). These brands have a brand

image that goes hand in hand with Ren’s, but Ren serves a smaller market at this point in time.

For this reason, Ren’s estimated yearly revenue is 50 million dollars.

Bare Essentials, the maker of Bare Minerals, is highly regarded as a respected natural and

organic makeup company with a unique product line system. According to the New York Times,

the company pulls in about 1 billion dollars yearly, worldwide. Its 2011 ad campaign cost about

16 million to 20 million dollars, which is about 2 percent of their annual sales (Vega, 2011). On

a much larger scale, Avon cosmetics draws in 10 billion dollars annual revenue and had a

marketing budget of 400 million dollars (4 percent of annual revenue) in 2010 (Avon, 2014).

This exhibits similar ad spending tendencies across the scale of Ren’s competitors.

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Based on these reported revenues and expenses, Ren has determined an advertising

budget of 3 percent of annual revenues of 50 million dollars. This allows 1.5 million dollars to be

allocated to Ren’s campaign needs.

Budget Allocation
=

Medium One-Time Cost * Number of Total Six-

Runs Month Cost

Redbook Magazine $147,525/issue * 5 (Months) = $736,260

Black and White ½
Page Ad

Harper’s Bazaar, 1/2 $110,010/issue * 5 (Months) = $550,050

page colored ad

Facebook advertising $406 per day * 183 (Days) = $74,474

Google AdWords $406 per day * 183 (Days) = $74,474

Beauty Bets Review $100, cost of * 5 Reviews = $500

donated product

Marianna Hewitt $750, cost of review * 5 Reviews = $4,250

review +$100, cost of
donated product

Catalog production and $1.50 to print and * 40,000 copies = $59,992

distribution mail each copy printed and mailed

Total = $1,500,000

PART IV: CREATIVE STRATEGY AND EXECUTION

Discussion of Creative Strategies

Ren plans to implement creative strategies in order to achieve its IMC objectives which

include increasing new user profiles, expanding consulting appointments in the Eastern U.S.

region, and gaining and retaining more loyal customers. There are many considerations when

trying to achieve such goals through a creative appeal and Ren has closely analyzed ways to

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showcase the brand to expand brand awareness, better explain the company’s mission to add

more informational value, and express the company’s positive impacts in the world to establish

purpose.

The company has determined the marketing mix will provide online and social media

content, supported with print advertisements. By encouraging product reviews from specified

bloggers once a month, running a magazine ad campaign almost monthly, releasing a catalog

twice a year, and having targeted ads on Facebook and Google AdWords, Ren will accomplish a

balance that will increase its reach, while not annoying potential consumers and becoming

mundane from high frequency of promotions. The company is primarily focused on utilitarian

benefits for the consumer with hedonic touches, requiring an informational approach for the

campaign to promote growth within the company. Because Ren’s target market skews a little

older, the customers have more experience with beauty products and are more likely to seek

information on the products they buy. This also appeals to the millennial generation, because

they are more cautious in learning about the production process and knowing what things are

made of. Lastly, this may be the first interaction a consumer has with the brand, so explaining

the company values and product attributes will further encourage a consumer to purchase.

Though these advertisements will take an informative approach, this does not mean there

will be a lack of creative and aesthetically appealing imagery. The use of color will be important

to represent the natural and environmentally friendly values of the company. The current earthy

and rich colors that will be used are snorkel blue, peach echo, rose quartz, iced coffee, and fiesta,

which were all derived from the Pantone 2016 color palette. These colors transition well from

the spring/summer season to fall/winter, in which our advertising campaign takes place. Not only

do they obtain a natural feel for the promotions, but also a sense of femininity encouraging

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women to embrace their beauty in a natural way. The mission statement and slogan are

important to incorporate into advertisements when appropriate, as they provide insight into the

meaning behind the company. The current slogan Ren is employing is, “Empowering women

while empowering the environment.” Although this slogan is simple, it implies that the company

is targeting women in a positive way, the company cares more than just about the product it sells,

and the company’s objective is to empower women through the product.

Following the use of text through the mission statement, slogan, and other informative

tactics, creative imagery is implemented. It is very important to the company’s image to express

its environmental values, especially when trying to gain reach across a greater distance. Since

the company is focused on producing the cosmetics and beauty care with all natural ingredients

and implementing an ethical and environmental business plan, these images are important to at

least grasp the attention of viewers. The ads involve nature’s greatest gifts of beautiful plants,

along with seeds and crops, most of which provide a health benefit or represent natural

ingredients in Ren’s products. Additionally, the company showcases pictures of the products in

order to easily project what the company is selling. Lastly, the company strives to incorporate

multiple design principles and elements to be able to grab a viewer’s attention. This campaign is

focused with a bird’s eye view of the products giving the imagery a clean and simple look. Lines

are implemented throughout creating shapes with products and adding interest across the ad. A

sense of balance is important in order to not overwhelm the viewer and to ensure the visuals are

aesthetically pleasing.

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Sources of Inspiration

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PART V: PROMOTION/IMC ACTIVITIES AND MATERIALS

Promotion Prototypes

Harper’s Bazaar Advertisement

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Facebook Advertisement

Create your tailored beauty profile

Ren.com
Empowering people and the planet. Pure skincare and makeup products.

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Direct Mail Catalog Cover

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Direct Mail Catalog Table of Contents

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Discussion of Prototypes

Each channel for promotion serves as an important way for Ren to accomplish its IMC

objectives. For creative promotion, the magazine advertisement will be mostly relied on for

reach and gaining the attention of new consumers, with support of the bloggers. This hopefully

will help in reaching a larger customer base in the Eastern region of the US, especially with the

avid Harper Bazaar readers in those areas. In designing this ad, Ren did not need a full page.

The approximate 4 by 11 inch space actually increased the visual use of lines and space. It was

important to cover all the bases so the consumer would know the product being sold and its

differentiating attributes, while gaining the viewers’ attention in the first place with eye catching

imagery. More specifically, the ad was created with the use of lines to gain a reader’s attention

and easily be able to follow the information provided. The imagery subtly gives sense of nature,

while the information further enforces it and encourages the consumer to learn more. With a call

to action and the employment of the campaign slogan, the reader can get a good idea about what

Ren is and how to engage with the company.

Then once a consumer has considered Ren as a cosmetics contender, the consumer may

have checked out the website seeking more information on the product. The Facebook and

Google AdWords advertisments will be important to consistently remind the consumer to go

back and purchase something. Therefore, this ad does not need as much information, especially

due to size constraints of about 1,200 to 1,628 pixels. Despite size, the ad still needs to remind

the consumer what the company is about through imagery. These ads will hopefully assist in

gaining new users and profiles to expand the reach of Ren. The design aesthetics of all three

promotional pieces presented supplement and complement each other in order to create strong

imagery for those who are just being introduced to this company.

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Lastly, the catalog provides as the most informational medium containing not only

products, but information about the brand, recent research conducted in the corporate research

and development center, and anything else that the company and employees want to share with

current and potential consumers. Catalogs are sent to the 40,000 most recent purchasers of the

product and loyal customers. These consumers may be looking for new Ren products

continuously, and the company plans on keeping them intrigued through interesting essays,

research teaching the consumer more about the world with relevance to the company, and with

tutorials and trends to make sure the consumer understands different ways of using the product.

Because this medium is distributed to those who already have company knowledge, there is less

of a need for company and product explanations on the cover. The catalog acts as an interactive

medium for the consumer and company, without having to communicate directly. Hopefully the

catalog will encourage loyalty in Ren’s consumers with added value of information and tutorials,

with more true value than just to sell to the customer.

PART VI: EVALUATION OF PROMOTION/IMC PLAN

Methods and IMC Objectives

Ren’s first integrated marketing communication objective for this 6-month campaign is to

increase new user profiles on Ren’s online ordering service by 5 percent within the next six

months. Though this will be easily evaluated just by reviewing website traffic and activities, it

will be more challenging to evaluate what advertising actions are causing these activities, in

order to see the effectiveness of Ren’s media plan. As the intent of the catalog is to retain current

customers, Ren can assume that there is no need to evaluate catalog results for this particular

objective. With the use of Google Analytics, Ren will be able to evaluate where website traffic is

coming from—whether people are searching specifically for Ren, or following an ad from

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Google AdWords, Facebook, or a blogger’s review to the website. In addition, Facebook’s own

analytics also provide information about impressions and click-through-rates from social media

users. Though there is no way to digitally track if ads from Redbook or Harper’s Bazaar are

leading consumers to make a profile with Ren, the company can add a survey question to the

sign-up process in lieu of more tech savvy methods. While consumers are filling out their profile

information and customizing their packages, they will answer a survey question about how they

heard about Ren, whether through a friend, a magazine ad, online, a blog or other. This

information will be helpful to determine what advertising activities are most effective and

worthwhile.

The second IMC objective in this media campaign is to reach 500 consulting appointment

in the Eastern U.S. region within the next six months. As Ren is trying to expand into this area,

many of the vehicles are targeting to reach this group. Of course, receiving reports and

information from consultants based in the East coast region is the simplest way to see if this

objective is being met. However, once again Ren needs to look at what media vehicles and

advertisements are accomplishing this, and which ones are not. Evaluating information on

consumer profiles to see client’s shipping addresses in conjunction with the aforementioned

survey question will lead to clear results about how this new region of customers are finding out

about Ren. In addition, a look at Facebook analytics and Google Analytics will help to determine

from what parts of the country website traffic is stemming from. This information will help Ren

to better tailor the online experience of blogs, social media ads, and Google ads to meet this

clientele throughout the duration of the campaign. This is the first step to increasing

consultations, as people in the Eastern region need to be exposed to Ren before they can actually

take action.

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The final IMC objective for this campaign is to retain 60 percent of current Ren

customers throughout the next six months. This retention rate is very important, as the true value

of Ren is the unique subscription business model. Clients need to continuously receive product at

least twice a year, as well as add-on other items with each shipment. By keeping this client base,

Ren is able to serve their public and their values better, as well as increase sales more efficiently.

The key media vehicle that speaks to this IMC objective is the direct mail catalog. Ren will cross

reference the recipient list for this catalog (40,000 clients) with consumer profiles and orders.

This will help the company to review whether or not those who received the catalog are

continuing to be active customers. Looking at the level of active profiles as a percentage of total

profiles will also be an excellent indicator of the retention rate that Ren is creating.

Promotion Budget

Many of the aforementioned evaluation methods will help Ren see if the selected budget

method is actually achieving the results that the company had hoped for. Overall, the company is

spending an extremely high amount of money on magazine advertisements, and very little on

more cost effective ways. Once Ren is able to scale the results of having a presence in a

published magazine, this may be revealed to be less effective than other methods. The 85 percent

of Ren’s advertising budget that is currently being used on singular, small advertising within two

highly rated magazines might not be enough of a force to compete with larger companies’ ability

to purchase full-page, full-color, and premium placed advertisements. The other 15 percent of the

budget distribution was allocated in a reasonable way and likely resulted in effective branding.

A more effective budget distribution may take Ren out of the magazine arena, but could

reach consumers in a more efficient and productive way. The 1,275,000 dollars spent on

magazine ads could be reallocated in a plethora of ways that would better serve the consumer

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base and Ren. Using these funds to create materials that provide true value to the consumer can

raise awareness and create more memorable and valuable experiences. Activities like online

communications, tutorial videos, and event sponsorship may better represent Ren’s values to a

new market as well as enrich the experiences of current and potential clients.

Strengths and Weaknesses, Overall Plan

Ren’s overall plan for this six month campaign uses reputable methods that drive traffic

and retain consumers. The creative message aligns with the needs of the campaign as well as the

brand personality of the company, and the approach is understandable to those who may have

never heard of this company before. In addition, this campaign established Ren in arenas that

many of its competitors are subsisting in—print magazines, targeted online advertising, direct

mail, and blogger endorsement. However, the plan in and of itself may not fully embody the

values that Ren exemplifies.

This campaign’s current budget distribution and focus may have hindered the ability to

create innovative materials and consistent consumer involvement. For future promotional plans,

it would be beneficial to take the current informational and visual message approaches into the

next stage of full involvement. One information-based option would be to pursue public relations

efforts that expose Ren’s organic philosophies and forward-thinking business model in credible

media outlets. Or involving clients in a social media movement, giveaway or contest of some

sort that focuses on how beauty can exist with natural and sustainable living. Another possible

campaign would be to create video makeup tutorial videos to help Ren’s target market with

makeup needs they actually face including looks for work, special events, or quick makeup when

they are short on time. These cost effective but also highly engaging and empowering future

branding materials would make Ren more innovative as well as speak to the values of the

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company. Through this lens, Ren can truly live up to its mission statement of being the “most

empowering and transparent beauty company, for both people and the planet, through a world

class client experience.”

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