Spice Up Your Life Marketing Plan for Russian Cosmetic Market

1. Spice Up Your Life Scott Struhar Francesca Bordonaro Sarah Chandler Brandon Cochran Nicole Burlbaugh

2. Marketing Opportunity Analysis

3. Environmental Analysis • Labor Force= 75.7 mil. • Large agricultural country, can produce natural makeup. • Russian women are focused on spending more to buy a better product. • Great opportunity for new entrants.

4. Market Definition • Large predicted growth. • Beauty market is the fastest growing. • Competitive environment will grow. • Distribution networks are growing. • Direct Sales

5. Russian Consumers • Among first countries to introduce radio and television. • Russian women are diverse as American women. • Russians are true to their brands and will pay a higher price.

6. Competitors • Estee Lauder • Skincare, makeup and fragrance • Max Factor • Makeup • L’Oreal • Skincare, makeup, hair care and hair color.

7. Suppliers • Mineral based products • No animal parts • Natural mineral mica covered by a thin layer of titanium dioxide. • Raw materials will come from Russia.

8. Marketing Plan

9. Executive Summary • Spice Girls Inc. offers a wide range of makeup. • Plan to enter into the Russian market. • Global Expansion • Overview of objectives and goals.

10. Current Market Situation

11. Market Description • Target Market: • Ages 15-25 • Middle to Upper Class • Single and married women • In need of quality product. • Fast growing opportunity. • Makeup for the young.

12. Product Review • Blush • Bronzer • Compact • Concealer • Foundation • Powder • Lip gloss • Eyeliner • Eye shadow • Mascara • Lipsticks • Brush Set • Makeup Remover

13. Competitive Review • Estee Lauder • Huge Competitor • Low price yet luxury. • Max Factor • Global success • Supermarket prices • L’Oreal • Cater to all demographics • Supermarket products-high end products

14. Channels and Logistics Reviews • Department Stores • Comparable to Macys, Nordstrom's, Saks 5th • Specialty Stores • Dead Sea Cosmetics, Spice World, Sephora • Online Retailers • Our website and department store websites.

15. SWOT Analysis • Strengths: • Organic Compounds • Globalized locations • Specialization • High end reputation • Wide variety of products • Appeals to many women • Weaknesses: • New to market • Competitors • Unfamiliar territory in Russia • Opportunities: • New market in Russia • Different clientele than in the U.S. • Global expansion into other European nations • Threats: • Rival companies • Disinterest in a new product (brand loyalty) • Economic instability

16. Objectives and Issues • First Year Objectives: • Introduce product • Website • Hire employees • Second Year Objectives: • Continue Growing • Strengthen marketing objectives & advertisements • Open more factories & logistics centers. • Close to break even. • Issues • Not a positive Feedback • Do not hit projected sales • Russian market changes • Economy gets worse.

17. Marketing Strategy • Positioning • Luxury yet affordable • Product Strategy • Package deal • Brand recognition • Pricing Strategy • $20.00 to $100.00 • Department store prices • Distribution Strategy • Selective Distribution • Department stores, specialty stores, website • Marketing Communications Strategy • T.V. advertisement • Celebrities • Billboards • Demo’s • Marketing Research • Current and consistent • Competitor Products • Brand awareness

18. Action Programs • January: • Trade Show • Establish 5 major retailers • February: • Begin advertisement • Television, radio &magazines • Begin using models • March: • Develop website • April: • Hold contest for new model • May: • Advertise in colleges and universities • June: • National advertising campaign

19. Budgets • First year sales= 100 mil • Lose 10 mil first year • Break even within 5 years, but hopefully before the 5th year.

20. Controls • Strong control • Customer service • Help lines • Internet • Representatives

21. BeFoRe & AfTeR • We decided to do a “Before and After” on a celebrity named Lady Gaga. • We used our “Spice Up Your Life” product line. We started off using our make up remover strips to get rid of what she had on. • First we started out with concealer , then applied the foundation, following with our powder. Finally we added a little pink blush. • We then applied a shade of “bad romance” lip glass upon Gaga’s lips. • Following her lips we then started with her eyes. We picked a light sparkle shadow for the eye color. • We wanted to be basic so we just added black eyeliner to the top and bottom lid, followed by a black mascara. • We kept her colors close to her regular skin tone and picked eye colors that accented her complexion. • She now looks more natural.

22. Colors Of The World, Spice Up Your Life