LAQUNA
Laquna
LAQUNA
Hana Hyman and Alena Dubik Professor Meeta Roy Contemporary Issues in Fashion
LAQUNA Introduction & Summary . . . . . . . . . . . . . . . . . . . 1-2 Our Company . . . . . . . . . . . . . . . . . . . . . . . 3 Competitive Landscape . . . . . . . . . . . . . . 4-5 Target Consumer . . . . . . . . . . . . . . . . 6 Inspiration . . . . . . . . . . . . . . . . . . 7 Line Sheets . . . . . . . . . . . . . . . . 8-13 Flagship Store . . . . . . . . . . . . . . . 14 Consumer Education . . . . . . . . . . 15-16 Transportation . . . . . . . . . . . . . . . . 17 Associated Costs . . . . . . . . . . . . . . . . 18 Impact Measurement . . . . . . . . . . . . . . 19-20 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . 21
LAQUNA
LAQUNA
Introduction & Summary Laquna is the first entirely sustainable and natural beauty brand in the world. The name Laquna is derived from the word “lacuna.� Lacuna has two definitions: 1. A blank space or missing part 2. A small cavity, pit, or discontinuity in an anatomical structure
Both definitions discuss an absence of something. In the cosmetic market, there is an absence of a completely sustainable cosmetic brand. Laquna will fill this absence. Not only will it be sustainable, it will be respected, unique, and welcoming. It is composed of high-quality cosmetics that are healthy to both the consumer and the environment. After extensive research, we designed a brand to attract those standing in the gap, as well as those currently less aware of sustainability and health concerns. Every product comes in beautiful, luxurious packaging sure to entice anyone interested in beauty. Our products and packaging are composed exclusively of sustainable and healthy materials. We made sure there is not a single aspect of our company not worthy of full transparency, something we deliver to our clients. Clients will be able to purchase Laquna’s products and experience the brand at its San Francisco flagship store and online via Laquna.com. Thanks to its many special attributes, we know Laquna will be a sought-after and lucrative cosmetic brand.
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Introduction & Summary
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In developing Laquna, we sought to conquer four immense issues:
1. Use only sustainable manufacturing practices, 2. Create only sustainable packaging using entirely sustainable materials, 3. Include ingredients that are not only sustainable, but also; 4. Completely healthy for both you and the earth.
We’re proud to say that we overcame the challenges of sustainability and consciousness. Next, came the second set of goals.
Laquna has to appeal to people for more than its value to your health and your environment. We know this, and we don’t take this lightly. For this reason, we also made Laquna of superb quality, extensive selection (both in breadth and depth), and jaw-dropping aesthetic appeal.
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Our Company Mission Laquna is here to show the world how incredible sustainability can look, feel, and be. Laquna is inspired by you. We exist to give you everything you want and need to feel beautiful and empowered, without compromising the world you live in.
Vision
Momentary looks for enduring change.
Values We have a commitment to our planet and our customers to deliver gorgeous, high quality products that can be reused, biodegraded, or renewed for another purpose.
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Competitive Landscape
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Competitive Landscvape
5 Metrics for sustainability: manufacturing, packaging, ingredients, and post-consumer lifecycle
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Target Consumer There’s a global push in progress. The
majority of consumers are concerned about the rate of consumption in the world and desperately want change.
According to The Regeneration Consumer Study conducted in 2012, two-thirds of consumers around the world say that “as a society, we need to consume a lot less to improve the environment for future generations”, and that they feel “a sense of responsibility to purchase products that are good for the environment and society.” A majority of consumers agree that they would “purchase more products that are environmentally and socially responsible.” Laquna seeks to fulfill the desire for sustainable beauty products. We want our customer to understand that Laquna is better for her and the planet. Our target consumer belongs to a fun and thoughtful group of 15 to 25 year olds. Most of her makeup concerns relate to a desire to express herself and boost her confidence. As an avid user of technology, this consumer often looks to beauty bloggers and YouTube beauty gurus to stay up to date with the latest and greatest of beauty trends, products, and techniques. She will be quick to test them for herself and share her thoughts online. She loves experimenting with cosmetic cocktails and multi-purpose products to craft new looks. Due to her craving and curiosity for beauty, this shopper has highly involved buying behavior. Purchase decisions are usually made after research and swatching. This age group also represents the largest percentage of online beauty shoppers. Since the Laquna shopper is concerned about her health and that of the planet, she makes conscious efforts to maintain a healthy lifestyle. She treats her morning makeup routine as an artistic retreat and makes an effort to look put together while showing her personal sense of style. With a discretionary income of $250 to 4,500 per month, our consumer primarily buys from luxury beauty brands. When our client discovers Laquna, she is in awe! Finally, natural, sustainable makeup that she can love for more than just the karma points.
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Inspiration
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Line sheets
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Foundation
Cost: $1.85, Price: $40.00
Concealer
Cost: $2.17, Price: $24.00
Eyeliner
Cost: $4.75, Price: $18.00
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Line sheets
Cost: $3.02, Price: $22.00
Lipstick
Cost: $5.40, Price: $26.00
Blush/Bronzer
Appendix 56-57
Cost: $3.62, Price: $32.00
Translucent Loose Setting Powder
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Line sheets
Aloe Barbadensis Leaf Juice, Vegetable Glycerin, Triisostearyl Citrate, Glyceryl Stearate, Cetyl Alcohol, Helianthus Annuus (Sunflower) Seed Oil, Stearic Acid, Caprylic Capric Triglyceride, Cocos Nucifera (Coconut) Oil, Persea Gratissima (Avocado) Oil, Butyrospermum Parkii (Shea Butter) Fruit, Passiflora Edulcis (Passionfruit) Oil, Methylcellulose, Extract of Calendula Officinalis Flower, Sage (Salvia) Officinalis Leaf, Chamomilla Recutita (Matricaria) Flower, Jojoba Esters, Flower Wax, Xanthan Gum, Ethylhexylglycerin, Phenethyl Alcohol.
Foundation
Cost: $1.85, Price: $40.00 Helianthus Annuus (Sunflower) Oil, Ricinus, Cera Alba (Beeswax), Silica, Castor Isostearate Beeswax Succinate, Mica (CI 77019), Carthamus Tinctorius (Safflower) Seed Oil (and) Organic Aloe Barbadenis (Aloe) Extract, Lysine, Tocopherol (Natural Vitamin E), Camellia Sinensis (Green Tea), Roman Anthemis Nobilis (Chamomile)
Concealer
Cost: $2.17, Price: $24.00 Simmondsia Chinensis (Jojoba) Seed Oil, Cocos Nucifera (Coconut) Oil, Euphorbia Cerifera (Candelilla) Wax, Copernicia Cerifera (Carnauba) Wax, Ricinus Communis (Castor) Seed Oil, Rhus Succedanea Cera (Rhus Succedanea Fruit Wax), Mica. May Contain: Iron Oxides (CI 77491, CI 77492, CI 77499), Mica (CI 77019), Mangnese Violet (CI 77742), Ultramarines (CI 77007), Ferric Ferrocyanide (CI77510)
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Eyeliner
Cost: $4.75, Price: $18.00
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Line sheets
Helianthus Annuus (Sunflower) Seed Oil, Flower Wax, Simmondsia Chinensis (Jojoba) Seed Oil, Butyrospermum Parkii (Shea) Butter, Polypropanediol Dimer Dilinoleate (Vegetable-Derived), Argania Spinosa (Argan) Kernel Oil, Acacia Decurrens Wax, Jojoba Wax, Helianthus Annuus (Sunflower) Seed Wax, Euphorbia Cerifera (Candelilla) Wax, Sesamum Indicum (Sesame) Seed Oil, Copernicia Cerifera (Carnauba) Wax, Resveratrol, Vitis Vinefera (Grape) Vine Extract, Siraitia Grosvenori (Monk Fruit); May Contain: Mica (Ci 77019, Ci 77492, Ci 77499), Carmine (Ci 75470), Fd&C Blue No. 1 (Ci 42090), Fd&C Yellow No. 5 (Ci 19140), Fd&C Red No. 40 (Ci 16035), D&C Red 6 (Ci 15850), Manganese Violet (Ci 77742)
Cost: $3.02, Price: $22.00
Lipstick
Mica, Simmondsia Chinensis (Jojoba) Oil, Boron Nitride, Magnesium Carbonate, Phenoxyethanol (and) Caprylyl Glycol (and) Sorbic Acid; May Contain: Titanium Dioxide, Iron Oxides, Carmine, Manganese Violet, Ultramarines, Bismuth Oxychloride, Chromium Hydroxide Green, Chromium Oxide Green
Cost: $5.40, Price: $26.00
Blush/Bronzer
Silica, kaolin
Appendix 56-57
Cost: $3.62, Price: $32.00
Translucent Loose Setting Powder
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Line sheets
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Eyeshadow Pans
Cost: $2.25, Price: $12
Eyeshadow Lockets
Cost: $0.66, Price: $10
Multi-pan Palette
Cost: $2.43, Price: $24
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Line sheets
How it Works Our eyeshadows can be purchased in three forms: free pans, lockets, or multi-pan palettes. Free pans, made of glass, slot into lockets and multi-pan palettes. Starting out, clients would likely purchase a pan with a locket for storage and protection of the eyeshadow, and to wear as well. Since our multipan palette holds up to eight eyeshadows, it encourages the collection and combination of eyeshadows so that our clients can customize their own looks and travel with eyeshadows more easily. The multi-pan palette is our only bio-plastic product, allowing us to print thematic graphics on its packaging to correspond with new collections. Also, when it comes to thin, larger items, bio-plastic is simply more travel-friendly than glass.
Eyeshadow Ingredients Mica, Simmondsia Chinensis (Jojoba) Oil, Boron Nitride, Magnesium Carbonate, Phenoxyethanol (and) Caprylyl Glycol (and) Sorbic Acid; May Contain: Titanium Dioxide, Iron Oxides, Carmine, Manganese Violet, Ultramarines, Bismuth Oxychloride, Chromium Hydroxide Green, Chromium Oxide Green5
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Flagship store
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Laquna’s flagship store will not only be a place to shop but a place socialize. The atmosphere will be tranquil and welcoming. Each staff member will play mutiple roles: sales associate, beauty consultant, and friend. The store will offer a unique service:. When a customer runs out of foundation, they can stop by the store to simply refill their existing foundation bottle. This service will be more cost effective and sustainable. Laquna will be the first cosmetic company to have a refilling service. This service will encourage consumers to return to the store. The Union district is a popular shopping area in San Francisco, California. Many retailers ranging from large to small, and high-end to low-end, have brick-and-mortar locations in Union. Competing stores in the area include Sephora, L’Occitane, and Lush. The current population of Union is diverse in terms of age, ethnicity, family mix, and lifestyle. The current population is 25,190, and most of the population is 21 to 34 years old. Union residents tend to be white, urban, middle to high income, at least college educated, employed, and without children.
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After 20 years of doing bussiness at 1830 Union Street, MAC Cosmetics will be leaving January 2015. The retail space has a generous, ground level selling floor, and a second floor storage space. The location has large, double paned windows, and electric heating and cooling. Since the building was previously owned by a high-end cosmetic retailer, cosmetic store furnishings will offered with the lease. Also, consumers who previously shopped at or near the MAC store, will already associate the building with high-end cosmetics. The space is 3,000 square feet, with a rental rate of $22,500 per month. The estimated annual cost of the utility bill will be $14,051. The property will be available February 2015.
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Consumer Education
We believe that the road to sustainability does not end when the customer leaves the store but rather that, to be truly sustainable, we must provide education for every step of our products’ lifecycle, including proper disposal. LAquna products are biodegrade, recycleable, or reusable. The Laquna website, Youtube, and in-store beauty consultants will function as education sources for our consumers regarding sustainability
and our efforts as a brand. Another way Laquna will educate its consumers is by giving its products to beauty gurus, who will be able to test the products and share their thoughts on their blogs and YouTube channels. Laquna will clearly display product expiration dates to best ensure the
efficacy and safety of their use, as well as remind consumers of the importance of removing their makeup both in store and on our website. By FDA regulations, ingredients may be listed under various names, making it nearly impossible for the average consumer to know exactly what is in her products. Laquna will use straightforward, transparent language in detailing our ingredients to alleviate this issue.
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Consumer Education
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QR code labels are a sustainable replacement for bulky pamphlets and packaging for individual products, making it possible for Laquna to eliminate tertiary packaging. These labels will be scanned by either consumers or beauty consultants. When scanned, the consumer will be led to the product’s page on the Laquna website. There, the product’s description, application, ingredients, price, and reviews will be available. Also, for consumers who do not own a smartphone or prefer not to talk to a consultant, iPads will be placed next to each display for their use.
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Transportation
Since Laquna will be a member of The L’Oréal Group, its products will be manufactured in one of L’Oréal’s many manufacturing plants. This will save Laquna valuable time and money. The Redmond, Washington L’Oréal manufacturing plant is closest to the Laquna flagship store. We will use Amtrak trains to transport the products. This is the cheapest and most eco-friendly form of transportation in comparison to all other transportation options. The specific railcar type that will be used is a full, twenty foot container. To protect the products during transportation, post-consumer cardboard grid system boxes will be used. The estimated price of the transportation will be between $567.77 and $627.53.
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Associated Costs Annual Expenses
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Inventory (Products + Shipment Packaging)
$243,898.85
Rent
$270,000.00
Utilities
$14,051.00
Transportation
$2,400.00
HR
$499,200.00
Total Expense
$1,029,549.85
Income
$1,724,000.00
Net Profit
$694,450.15
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Impact Measurement
L’Oréal is a perfect fit for Laquna as it is the leader in sustainable beauty, from manufacturing to sourcing to employment. L’Oréal is committed to furthering its sustainability footprint by 2020 with some major goals:
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Reduce CO2 emissions at L’Oreal plants and distribution centers by 60% Send zero waste to landfill Reduce water consumption by 60% per finished product unit Reduce waste by 60% per finished product unit Reduce CO2 emissions from transportation of products by 20% per finished product
• All L’Oréal employees worldwide will be provided with healthcare, social protection, and access to training • 100% of suppliers will participate in L’Oréal’s sustainability development program.
Both Laquna and L’Oréal follow the chart on the left as our guide for each ingredient in our products. Laquna is proud to say that every one of our ingredients holds a rating of no more than one (out of ten) on EWG Skin Deep, the ultimate database for cosmetics ingredients safety and impact. We plan to manufacture Laquna products in small batches, using only what is needed and constantly reusing and recycling materials. Small batches makes sustainability easier to achieve, but also ensures freshness and quality for our consumers. We also encourage the reuse of our packaging, primarily with our eyeshadows and foundations. This increases sustainability and brings customers back into the store. The store is designed to be a tranquil and engaging learning environment, complemented by testers to swatch, iPads to swipe, and beauty consultants to converse with. iPads will be at each display open to Laquna.com, where all of our products are fully disclosed. At their leisure, Laquna clients can scan our QR code labels to access full ingredients lists, video content, and more.
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Impact Measurement
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We at Laquna want to take more ownership and responsibility of our brand’s impact by implementing additional measures to support sustainability. • Travel shorter distances - We will transport from the L’Oréal plant in Redmond, Washington to our store in San Fransisco. • Ship infrequently - Small batches, steady inventory, and only seasonal additions to our product assortment allow for this • Utilize trains - Amongst our transportation options, trains use the least amount of gas. We will be using Amtrak. • Pack in grid system boxes - Laquna will use specially designed post-consumer boxes containing a grid of cardboard sheets slotted to size for each of our products. This eliminates the need for tertiary packaging, which would be immediately disposed of by the consumer, while still protecting our merchandise from damage. Laquna packaging was designed to be of the least impact possible, with all products but one being made of post-consumer glass. All of our products are recyclable and some are specifically designed to be refilled. The only product whose packaging is not made exclusively of post-consumer glass is our multipan palette, which is made of bioplastic. Bioplastic, while more expensive than post-consumer glass, is entirely biodegradable. Because the multi-pan palettes are essential to Laquna shoppers collecting eyeshadows, the item we expect to sell the most, we see the palettes as being an investment to our clients in their future with Laquna. These palettes will be produced and stocked minimally, as compared to our other products. Bioplastic allows for us to get creative with our packaging designs as we can print directly onto it, enabling us to change up the look of the palettes thematically with new collections. The exciting new prints and limited edition aspect of the palettes will help incentivize the buying of more palettes, even for customers who already own one (or more).
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Cosmetics, for the sake of hygiene, have a short product life cycle with the consumer. Providing the opportunity for customers to refill their eyeshadows and foundations helps lighten the load of their recycling bins.
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Conclusion
We look forward to Laquna’s future, and to fulfilling the gap of sustainability in the beauty industry. We’re excited to watch and encourage Laquna’s growth, adding new collections, products, and shades to our line over time. Laquna seeks to change how consumers shop for beauty by implementing education at every stage of the buying process. We hope Laquna will inspire consumers to shop more consciously. Further, we hope to inspire our industry peers to follow our lead in sustainability and help us transform the industry together.
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