Kevyn Aucoin Pop Up Shop

Kevyn Aucoin Popup Shop Amira Hatlani & Lauren Werth FASM410: Retail Management Professor Levy 13th November, 2017

TABLE OF CONTENTS I. About Kevyn Aucoin II. About the company III. Strategic initiative IV. Pop-up shop proposal

about kevyn aucoin

Aucoin grew up in Lafayette, Louisiana and raised by his adoptive parents. He had been interested in makeup since he was a child, and would do his sister’s makeup and photograph it with a Polaroid camera. He continued taking Polaroids of his clients throughout his career.

Kevyn dropped out of high school because he was severely bullied for being gay. He then attended beauty school, but he was so ahead of other students that ended up actually teaching the class instead. At 18, Kevyn started working at a makeup counter in a women’s department store, but women wouldn’t let him do their makeup. He was really the first male makeup artist to be successful. In 1998, Kevyn moved to New York City.

Kevyn began putting makeup on models for free in order to build his portfolio, and he was eventually discovered by Vogue. For the next year, he worked daily with legendary Vogue photographer Steven Meisel. In the 3 years following his first Vogue shoot, he did a total of 18 more. In 1986, Kevyn did the makeup for Cindy Crawford’s first ever Vogue photo shoot. In just one year after that, Kevyn did nine Vogue covers in a row, and seven Cosmopolitan covers. At his peak, he could charge up to $6k for one makeup session.

Aucoin was the most influential and iconic makeup artist of the 90’s, with a huge celebrity clientele. He published his first book, The Art of Makeup, in 1994.

In 1995, he won the CFDA award for Excellence in Makeup Artistry; he is the only makeup artist to have won this award.

He then published his next book, Making Faces, in 1997. He published his last book, Face Forward, in 2000, for which he did most of the photography. His books were Time Magazine best sellers. His celebrity clientele included Whitney Houston, Cher, Liza Minelli, Janet Jackson, Tina Turner, Gwyneth Paltrow, and Vanessa Williams, alongside the countless models did for magazines and runways.

In September 2001, shortly after founding his makeup company, Aucoin was diagnosed with a rare pituitary tumor. He had been suffering from acromegaly for most of his life due to the tumor, but it had gone undiagnosed. He began taking large amounts of prescription and nonprescription painkillers to ease his pain. In 2002, he died of liver and kidney failure due to acetaminophen toxicity, caused by the painkillers.

“…EVERYBODY’S DIFFERENT, AND THAT IS THE ESSENCE OF THEIR BEAUTY.” KEVYN AUCOIN

about kevyn aucoin HIS WORK

HIS LEGACY

Kevyn Aucoin’s books stand the test of time. Aucoin changed the world of beauty via three best-sellers full of his favorite makeup tricks and techniques. Aucoin’s talent made him the most sought after makeup artist of his time—His heart is what continues to inspire and why Kevyn Aucoin remains influential to this day.

In Kevyn’s mind, there was no right nor wrong when it came to makeup, only creativity, confidence, and kindness. This spirit lives on in the Kevyn Aucoin team today. Whether you’re a beginner or a PRO, through his books and his artistry, Aucoin continues to encourage makeup artists to share with one another, push the limits of makeup, and believe in what they’re doing.

HIS PHILOSOPHY Aucoin wanted women to feel beautiful and he generously shared his secrets with the hope that the people who read his books would find their own uniqueness. To Kevyn, each person in his chair was a palette of possibility—he wanted everyone to feel special in their own skin. “Every face tells a story, and to be a good makeup artist, designer, photographer, stylist, or hairdresser, I believe you must be able to ‘read’ the person before you.”

about the company

kevyn aucoin makeup

Kevyn was among the first in the industry to pioneer skin tone inclusive makeup ranges. In 1983, at just age 21, Revlon hired him to be creative director of their Ultima II range. In 1984, he launched a collection called “The New Nakeds” for them. This was the first lane based solely on skin tones.

Linda Wells, editor of Allure Magazine, stated, “It may not seem like it, but it was a powerful moment. Before, there were makeup lines for white women and others for black women. But he worked to design makeup for all skin tones. The idea was to empower a woman by revealing her natural beauty, and not to cover her up with layers of product.” Later, Kevyn worked with Shiseido on their Inoui line. Following this, he was approached by both Vincent Longo and Laura Mercier to endorse their makeup brands, but instead he started his own eponymous label in 2001.

Currently, Kevyn Aucoin Beauty still remains as a luxury beauty label that reflects Kevyn’s artistry and concepts. It is a private company currently owned by Manzanita Capital, an investment team based in London. The products are currently carried on their own website, on Sephora Online, and they have counters inside of Barney’s stores. The company also has numerous wholesale accounts all over the world with independently owned boutique-style beauty stores.

executive summary OUR VISION

Our project aims to bring fresh new products and life into Kevyn Aucoin, to share Kevyn’s vision of education and artistry, increase sales, and increase brand awareness. Currently Kevyn Aucoin carries a large variety of products, but we see a lack in new product launches. We will focus on this with our project, and emphasize Kevyn’s passion for skin tone inclusivity and vast color ranges. We also want to make sure the brand is communicated to be age inclusive, since Kevyn’s did work with such a vast range of ages, from 18-year old models to 44 year old icons.

OUR GOALS

We see our project emphasizing Kevyn’s vision of makeup education, by releasing a new book and products that go along with it. The store and product offerings will feel luxurious, with new product formulas and launches, such as a “look in a box” concept that offers every product you need for one look in one pretty little box. We also will have a wall dedicated to Polaroids we take of our customers, employees, and makeovers, since Kevyn always took Polaroids of his lovely clients. Essentially, our goal is to make luxurious, high quality products and continue Kevyn’s legacy and unique approach to beauty.

current ownership Ownership: Manzanita Partners CEO: Hillary Solomon President: Cheri Murray CFO: Kenneth Stern VP of Operations: Gina Famiglietti Private investment company Based in London 30 employees

market analysis The beauty market is no longer as celebrity driven: 82% of women now believe that social media drives these trends. It’s a constant flow of information and opinion from not just trendsetters or celebrities, but from friends and friends of friends and an entire universe of strangers. Platforms like Instagram and YouTube allow anyone to become beauty bloggers and influencers. Now the beauty market is not just about make-up, it’s also about skin care, hair styling, hair removal, nail salons, and luxury spas. The beauty industry is also more diverse and inclusive than ever before. Makeup caters to more skin tones and textures, and takes into account a person’s age, skin type, and personal concerns. For 2017, it is estimated that the beauty industry will be worth $28 billion. By 2021, that number will go up to $34 billion.

Most consumers care, are discerning, and will try a number of different products before finding something that works. Once they find it, however, brand loyalty - whether for a foundation or a brush is extremely strong. Beauty brands differentiate themselves through their target demographic markets, price point, and with different manufacturing processes. Products that promise no animal testing or that are all natural, for example, have loyal, niche markets and can often charge a premium. Service providers compete primarily through price, location as well as their target demographic markets.

brand analysis BRAND AS A PRODUCT Makeup: Face Eyes Cheek Lips Brushes

Etc:

Three bestselling makeup books Current price range: $21-$650

BRAND AS A SYMBOL Aubergine packaging Professional tools Kevyn’s story & legacy

BRAND AS AN ORGANIZATION CEO: Hillary Solomon Creative director: Eric Sakas Influential Iconic Trendsetting Contemporary

BRAND AS A PERSON Expressive Sophisticated Luxurious Iconic Authentic Classic Fresh

Direct competitors High quality

Affordable

Expensive

Price: $25-$300 Product competition: gel eye pencil, lipsticks

Price: $20-$250 Product competition: gift sets, foundation

Price: $20-$85 Product competition: Multiple sticks, blush

Price: $18-$650 Product competition: Highlighters, primers

Price: $20-$135 Product competition: Foundation, bronzer

Price: $15-$295 Product competition: Foundation, brushes

Indirect competitors

Low quality

Price: $13-$290 Product competition: tinted lip balms

Price: $7-1$32 Product competition: BB creams

Price: $22-$631 Product competition: Tinted sunscreen

marketing/ communication Kevyn Aucoin currently does not have any major marketing campaigns or strategies. They primarily use social media for their marketing, on Instagram, Facebook, Twitter, and Pinterest. They post to their Instagram and Twitter daily, often multiple times a day. They often market themselves featuring celebrities who have used their product, and product features in magazines. They also have an email newsletter available to customers.

Instagram: 265k followers Facebook: 26,986 likes Twitter: 44.9k followers Pinterest: 1,840 followers

current distribution

ONLINE

Kevyn Aucoin Sephora Barney’s Bergdorf Goodman’s Cult Beauty Net-a-Porter Nordstrom Violet Grey Space NK Neiman Marcus

IN STORE

Barney’s Space NK Bergdorf Goodman Independently owned beauty stores & apothecaries

Kevyn Aucoin primarily sells online and in small, boutique style beauty stores. Major online retailers include Sephora, Nordstrom, and Net-A-Porter.

Major in-store retailers include Barney’s, Space NK, and Bergdorf Goodman’s. Sephora is a huge customer for them, although they only sell certain products in store, primarily his Neo highlighters.

Other wholesale accounts include small, indepently owned beauty stores.

STRENGTHS

WEAKNESSES

Name recognition Cult following Barrier breaker-inclusive Worked with many influential celebrities Strong brand image and story Niche market

Lack of store presence Poor marketing and information distribution Small market presence and saturation Pricey Products would only appeal to certain age and income demographic Not as well known to younger generations

OPPORTUNITIES

THREATS

Expand position in market More social media presence Offer more new products, books, and sets Increase marketing & communication strategies

Heavily saturated market Cheaper Instagram beauty brands Millennial generation more interested in YouTube beauty looks

strategic initiative

store location: Mall of America, Bloomington, MN

target demographic: Edina, MN

ABOUT EDINA:

Edina is a southwest suburb of Minneapolis-St. Paul and boasts a population of 47,941. It is one of the most affluent suburbs of Minneapolis.

The median income of Edina is about $86,900. The majority of Edina residents, (28.10%) are in management, business, and finance. the city was even named one of Family Circle magazine’s “Top 10 Towns for Families” in the U.S. With countless shops and upbeat restaurants, Fairview Hospital nearby, award-winning schools and parks, a thriving business community, low crime rate, and near six major highways, Edina is the place to live and grow for families.

demographics

Transportation: Average person owns 2 cars Average commute is about 18 minutes Recreation: Tennis Golf Vacation and travel Boating in the summer (124,000 lake cabin owners in Minnesota total)

Age Under 18: 24.2% 18-24: 8.5% 25-44: 21% 45-64: 29.6% 65 and older: 20.7% Education Attending college: 2.6% High school graduates: 97.6% College graduates: 68.5% Income Per capita income: $62,587 Median Household Income: $88,298

Family Details: Upscale younger family mix Wealthy middle age mostly with kids Wealthy older mostly without kids Ethnicity 84.6% White 2.0% Black 7.1% Asian 3.4% Hispanic or Latino Spending: Consumers spend $207m Annual household spending: $58,103

target market characteristics

EDINA, MN ZIP CODE: 55424

TOP TIER: 57.4%

URBAN CHIC: 11.8%

EXURBANITES: 9%

MEDIAN AGE: 46.2 MEDIAN HOUSEHOLD INCOME: $157,000

MEDIAN AGE: 42.6 MEDIAN HOUSEHOLD INCOME: $98,000

MEDIAN AGE: 49.6 MEDIAN HOUSEHOLD INCOME: $98,000

They earn three times the US household income and enjoy spending on salons, spas, fitness centers, and high-end retailers. They vacation frequently and fill our weekends with art, entertainment, and charity functions. Residents fill their weekends and evenings with opera, classical music concerts, charity dinners, and shopping. Annually, they earn more than three times the US median household income. These are the nation’s wealthiest consumers. With an accumulated average net worth of over. 1.5 million dollars.

Urban Chic residents are professionals that live a sophisticated, exclusive lifestyle. Half of all households are occupied by married-couple families and about 30% are singles. These are busy, well-connected, and well-educated consumers—avid readers and moviegoers, environmentally active, and financially stable. This market is a bit older, with a median age of almost 43 years, and growing slowly, but steadily.

Prefer to drive luxury imports and shop at upscale establishments.

Ten years later, Exurbanites residents are now approaching retirement but showing few signs of slowing down. They are active in their communities, generous in their donations, and seasoned travelers.

They take advantage of their proximity to large metropolitan centers to support the arts, but prefer a more expansive home style in less crowded neighborhoods. They have cultivated a lifestyle that is both affluent and urbane.

-Seek variety in life -Top Tier consumers are shoppers. They shop at highend retailers -Consumers spend money on themselves; they frequently visit day spas and salons, use dry cleaning services, and exercise at exclusive clubs

-Embrace city life by visiting museums, art galleries, and movie theaters for a night out.

-Travel extensively (domestically and internationally) -Shop at Trader Joe’s, Costco, or Whole Foods

-Established neighborhoods (most built between 1970 and 1990) found in the suburban periphery of large metropolitan markets.

-Consumers are more interested in quality than cost.

They take pride in their homes and foster a sense of personal style.

target market -Upper-class women with high salary and household income -Enjoy luxury beauty products and discovering new makeup -Working women with a family -Age range from 25-60 years old -Shop on the weekends, involved in local activities -Live in the city or near a metropolitan area

customer profiles Name: Charlotte Age: 30 Occupation: NICU nurse Location: Edina, MN Income: $75k Favorite: products: Likes the tinted moisturizer and the cream eyeshadow Hobbies/Interests: Charlotte likes to cook, read, and run marathons Name: Faith Age: 30 Occupation: Real estate agent Location: Edina, MN Income: $75k Favorite products: Lipstick and brow pomade Hobbies/Interests: Likes to visit the Minneapolis Institute of Art, play with her dog, and likes to cross stitch

Name: Kathleen Age: 50 Occupation: best mom ever, part time job at Pottery Barn Location: Edina, MN Household income: $150k Favorite products: Multiple stick and concealer Hobbies/interests: member of local PEO, goes to art classes at local art center, volunteer dog walker

The Mall of America MOA is located in Bloomington, MN. Opened in 1992, it is the second largest mall in the United States in terms of its number of stores and total floor area. Southeast of the junction of Interstate 494 and Minnesota State Highway 77, north of the Minnesota River and across the Interstate from the Minneapolis–St. Paul International Airport.

THE MALL

565 stores open now Building: 5.6 million square feet.

Revenue: $2 billion dollars Annual visits: over 40 million Annual mall sales: over $1 billion Sales per square foot: $704 Public relations: over $400 million in free publicity annually Retail: 69.2% Entertainment/Attractions: 22.4% Food & Beverage: 8.4%

FIRST TO MARKET -Mall of America is the premier retail entry point for the Minneapolis/St. Paul market & region for retailers extending their brand.

-Over 100 MOA retailers have been “first to market” in debuting their brands including Nordstrom, Apple, Zara, Burberry, Hugo Boss, Nike,L.L.Bean, Fabletics & Under Armour.

Minneapolis/St. Paul demographics Total population: 3,519,656 Total households: 1,723,210 Adults 25-54: 1,869,091 30 mile radius Total population: 2,953,610 Total households: 1,165,929 Average household income: $89,678 CUSTOMER BASE Local: 60% Tourist : 40% Average Spend per Visit: $316 Average Length of Stay: 4 hours

MOA is the #1 shopping destination in the Minneapolis/St. Paul market for attracting shoppers with the highest household incomes -78% of affluent shoppers choose Mall of America to make their luxury purchases -56% of affluent consumers with HHI $250,000+ in Minneapolis/St. Paul shop MOA -55% of Minneapolis/St. Paul residents with HHI $150,000+ shop MOA -33% of guests’ primary reason to visit MOA is the availability of higher end & luxury brands -92% of shoppers make a purchase at Mall of America

The Mall of America

USA VISITORS 18 STATE TRADE AREA Minnesota Wisconsin Kentucky Iowa Missouri

Colorado Illinois Ohio Tennessee SOUTH DAKOTA

North Dakota Pennsylvania Michigan Indiana Arkansas

Kansas Nebraska Oklahoma

MALLOFAMERICA.COM 4 Million Annual Users 17 Million Annual Page Views

AREA ATTRACTIONS Centennial Lakes Park Edina Art Center Edinborough Park Pinstripes-bowling and bocce Edina Art Fair Southdale Shopping Center 50th and France shopping center Minneapolis Institute of Art Walker Art Center Weisman Art Museum First Avenue-rock venue Minnehaha Park Fort Snelling St. Park Guthrie Theater Minnesota Zoo Edina Galleria Shopping Center Twins Stadium Vikings Stadium

Concept & location justification

DIRECT COMPETITION IN THE MALL Sephora Bare Minerals Bath & Body Works Beauty Makeover The Body Shop L’Occitane Lush MAC Nordstrom NYX Ulta Beauty Chanel INDIRECT COMPETITION IN THE MALL Burberry Chanel Macy’s Nordstrom

Our concept makes sense because we will be located in an upscale mall that is performing well in sales. Our target customer is a large portion of Edina’s population. The area is easily accessible and surrounded by similar luxury shops, but does not have much competition in terms of boutique style luxury beauty stores We’ll bring customers of this area the excitement of new, luxury, highly functioning makeup. This could also bring some new life into the idea of the mall, which people are so worried about. Lately companies are not choosing to put their pop-up shops in malls but rather in markets like Manhattan. Our choice could actually bring us lots of attention in terms of bringing an exclusive pop-up concept into a mall. Currently Kevyn Aucoin has great products with great formulas, but certain trends and needs are not being met. Also, some products have a limited range of colors. The company has great potential to address these cavities in their product offering. They also could capitalize on the brand’s history and Kevyn’s iconic vision of makeup education.

Date justification We will be open for two months, opening on November 5 and closing on December 30. We chose this time because this is the holiday season. This is the time when the mall sees the highest number of sales and traffic. It may be considered a risky time to open, but we see many of our products being great gifts during the holidays, especially our books and look in a box. There will already be increased foot traffic in the mall due to holiday shoppers, so we’ll probably have higher conversion during this time. We also considered that this is better than opening when the weather is warm, because people are less likely to wear makeup when it’s warm.

employee policy The Kevyn Aucoin pop-up shop employee structure will begin with two managers.

Each will be personally selected by the Kevyn Aucoin company to head this project.

Travel and lodging expenses will be covered by Kevyn Aucoin for the duration of the two months the pop-up is open. One manager will be in charge of the promotional and branding strategy for the pop-up, while the other will be in charge of the financial operations.

The shop will also have two sales leads and five sales associates. These employees will be required to have worked at least one year in a beauty retailer that sells Kevyn Aucoin products, and have experience in beauty tutorials and applications.

The sales associates will be mostly responsible for selling product, while the sales leads will hold associates accountable and ensure daily financial and operational goals are met. Furthermore, the sales leads will also be given the role of keyholders.

That way, if a manager cannot be in the shop for any reason one day, a keyholder can open and close the store and be responsible for day-to-day operations. In order to deter internal and external theft and shrinkage, a manager or keyholder must be present in the store during all open hours.

The pop-up shop will be an intense experience. As it will be open in one of the busiest malls in the country during the holiday season, the hours required to be open will be extended. Therefore, all employees will have to be willing to work lengthy hours. Any employee found to not be meeting the Kevyn Aucoin pop-up shop expectations is subject to replacement.

Wages Managers

2 $20/hr

Leads

2 $15/hr

Sales Associates 5 $13/hr

PESTLE Analysis POLITICAL -A nearly $1 billion bonding bill and a package of transportation projects fell apart on the House floor in the last 15 minutes of session when confusion arose over whether light rail funding was included in the package.

-A tax cut bill was vetoed by Gov. Mark Dayton a week after the session was over — when Dayton’s staff realized there was a drafting error that would cost the state $100 million over the next three years.

-Negotiations for a special session to re-pass the bonding and tax cut packages fell apart, repeatedly, even when the time-sensitive issue of passing relief for rising health insurance premiums was added to the mix.

-Lack of transparency -Clashes between the more liberal Minneapolis-St. Paul and the conservative surrounding suburbs -2018 Governor’s run gearing up

ECONOMICAL -Minnesota has been struggling with the possibility of a recession for awhile -High state taxes -No sales tax on clothing but there is sales tax on cosmetics -The Twin Cities metropolitan area ranks average or below average among the nation’s 15 major metropolitan areas in rates of economic growth and job creation -Decline in venture capital -Unemployment rate: 3.4% -Cost of living: 0.4% above national average

SOCIAL -This location is really popular during the holiday season. People from a wide radius drive to come to this mall, so we can expect a significant amount of foot traffic -It’s an upscale mall, so we fit into the surrounding stores and will have like-minded customers -There have been recent Black Lives Matter demonstrations both in the mall and the surrounding area and highways -The people of Minnesota are “Minnesota nice,” and have strong family ties and a sense of community exclusively with those with shared beliefs.

-Immigration has increased 14% in the last ten years

TECHNOLOGICAL -Wireless tech atmosphere surrounding the city -Mall of America features free, high-speed WiFi provided by Cisco hardware -We will feature two iPads in store to look items up and complete checkouts as needed, as well as TV screen to play Kevyn’s shows from the 1990s.

-Our shop will also have a POS system for quick and easy checkout -The mall also features a valet service that allows shoppers to drop off and pick up their cars in different locations -E.L.F-Experimental List Formulator. It’s essentially a mobile concierge, an IBM Watson-powered chatbot that asks people things like what they enjoy doing or how long they plan to hang out at the mall -An MOA phone app to browse stores, determine how busy the mall is, set a to-do list and map it, find parking -Digital signage in the mall

LEGAL -The mall runs a tight security unit -Monthly lockdown drills -Friday and Saturday evenings youths under 16 must be accompanied by an adult 21 or over from 4pm-close -Those parental escort policy hours will be extended Thanksgiving, Black Friday, and December 26-31 -No firearms or alcohol allowed on premises

ENVIRONMENTAL Climate will be cold and snowy during the months the pop-up is open In the heart of the downtown area of the financial district Since it’s right off the Highway 77 and Interstate 494, access to the mall is easily accessible Hotel shuttles, taxis, and tour busses drop off and pick up passengers at the new North Entrance with convenient access from American Boulevard.

Light Rail Transit links Downtown Minneapolis, MSP International Airport and Mall of America

pop-up proposal

Kevyn Aucoin pop-up shop 650 sq. ft.

Office and employee rest area Stockroom

Gift wrap area TV Display

OVERVIEW Size: 650 sq. ft Rent: $15k/two months Dates: November 5-December 30 Total styles: 34 Location: Mall of America

Cash wrap

UNIQUE CHARACTERISTICS SELLING TOOLS

Product display

Mirrors and graphics

Seated consultation area

Polaroid wall

Window display

-We will feature an area for seated consultation with our customers. Customers will be able to test product and consult with the assistance our trained sales associates. Customers can also receive a full makeover by our trained artists/associates. This way the customer has a one-on-one interaction with the product and associate to find what best suits their needs. We will focus on education and interaction, making sure our customers understand the product and have fun shopping for it.

-Kevyn always took Polaroids and videos of his clients, something that marked his incredible work and personality. We will feature and area dedicated to Polaroids we take of our employees, product, and customers. This adds a personal touch to our store and stays true to Kevyn’s personality.

LAUNCH PARTY

-Budget: $7k -In store event inviting Mall of America customers, already existing customers, influencers, and makeup artists -Drinks, catering, makeup tutorials, & product demonstrations -Polaroid area and photo booth -Each purchase of the new Kevyn Aucoin book features a complimentary mystery item

TECHNOLOGY

-Free WiFi access -Two iPads in store to look items up and complete checkouts as needed -TV display above cash wrap to play Kevyn’s shows from the ‘90s -POS system for quick & easy checkout -Find us in MOA phone app

PRO ARTISTRY PROGRAM

-Kevyn Aucoin is proud to participate in a pro artistry program for licensed professional makeup artists, which offers their product at a 40% discount.

This will be honored in store -We will invite makeup artists and influencers to the launch party so they can be aware of and enjoy this benefit.

design

design

product display DESIGN -Sleek, sophisticated design -Products in center of store -Polaroid wall -Graphics and product displays along wall -Screen above cash wrap -Consultation area with professional tools & lighting

FACE

Brow pomade 5 shades $37

LIPS

Sensual skin enhancer 16 shades $48

Brow gel pencil 6 shades $28

The Etherealist Primed skin super natural developer concealer $68 9 shades $30

The Sensual skin fluid foundation 12 shades $65

The Etherealist foundation 16 shades $58

Tinted moisturizer 10 shades $50

The Sensual skin powder foundation 12 shades $56

EYES

Cream eyeshadow 10 shades $37

Contour palette 3 shades $72

The Expert lipstick 20 shades $35

Matte lip color 16 shades $35

Sensual lip satin 6 shades $35

TOOLS

Gel liner 5 shades $36

Eyeshadow duo 7 shades $42

The Essential mascara $32

CHEEKS

The powder glow blush 10 shades $37

The Celestial bronzing veil 2 shades $48

The creamy glow 10 shades $37

The Celestial highlighting powder 3 shades $44

The Expert mascara $32

The Precision eye definer 6 shades $32

The Neo highlighter 3 shades $58

The Precision liquid liner 2 shades $34

The multiple glow 6 shades $75

The Expert glow cheek palette 6 shades $72

The Expert brow brush $30

The Expert essential brush set $200

The Expert eye brush set $150

GIFTS

The Expert look-in-a-box 5 combinations $250

New book $80

The Expert face brush set $200

Financial overview PROFIT AND LOSS STATEMENT

Total Operational Cost Total Promotional Cost Total Revenue Total COGS Total Profit Total Loss

$ 119,900.00 $ 548,000.00 $ 906,304.00 $ 362,522.00 $ (124,118.00) SALES FORECAST

LOCATION FOOT TRAFFIC PER DAY PERCENTAGE OF CONVERSION TRAFFIC/FALL Footfall

Conv. % Avr.Basket

(MKUP 60%) PRODUCT % Eye Face Lip Cheek Set TOT.

AVR.PRICE Eye Face Lip Cheek Set TOTAL

Sales volume COGS 0.4 0.2 0.2 0.1 0.1 1

REAL $47.00 $46.00 $90.00 $49.00 $200.00

$ 1,955.00 $ 977.50 $ 977.50 $ 488.75 $ 488.75 $ 4,887.50

115,000 0.005

115,000 0.006

117,000 0.007

Day 1 575 0.05 $ 170.00 TOT.REV $ 4,887.50 $ 1,955.00 Day 1 $ 1,955.00 $ 977.50 $ 977.50 $ 488.75 $ 488.75 $ 4,887.50

Day 2 690 0.05 $ 170.00 TOT.REV $ 5,865.00 $ 2,346.00 Day 2 $ 2,346.00 $ 1,173.00 $ 1,173.00 $ 586.50 $ 586.50 $ 5,865.00

Day 3 819 0.07 $ 170.00 TOT.REV $ 9,746.10 $ 3,898.44 Day 3 $ 3,898.44 $ 1,949.22 $ 1,949.22 $ 974.61 $ 974.61 $ 9,746.10

Day 1 AVR.UNIT 42 21 11 10 2

Day 2 AVR.UNIT 50 26 13 12 3

118,000 0.007

200,000 0.009

250,000 0.01

225,000 0.008

Day 4 Day 5 Day 6 Day 7 Weekly Total 8-Week Total 826 1800 2500 1800 0.07 0.08 0.08 0.08 $ 170.00 $ 170.00 $ 170.00 $ 170.00 TOT.REV TOT.REV TOT.REV TOT.REV $ 9,829.40 $ 24,480.00 $ 34,000.00 $ 24,480.00 $ 113,288.00 $ 906,304.00 $ 3,931.76 $ 9,792.00 $ 13,600.00 $ 9,792.00 $ 45,315.20 $ 362,521.60 Day 4 Day 5 Day 6 Day 7 $ 3,931.76 $ 9,792.00 $ 13,600.00 $ 9,792.00 $ 1,965.88 $ 4,896.00 $ 6,800.00 $ 4,896.00 $ 1,965.88 $ 4,896.00 $ 6,800.00 $ 4,896.00 $ 982.94 $ 2,448.00 $ 3,400.00 $ 2,448.00 $ 982.94 $ 2,448.00 $ 3,400.00 $ 2,448.00 $ 9,829.40 $ 24,480.00 $ 34,000.00 $ 24,480.00

Day 3 AVR.UNIT 83 42 22 20 5

Day 4 AVR.UNIT 84 43 22 20 5

Day 5 AVR.UNIT 208 106 54 50 12

Day 6 AVR.UNIT 289 148 76 69 17

Day 7 AVR.UNIT 208 106 54 50 12

TOT. 964 493 252 231 57 1,996

Financial overview UNIT BREAKDOWN

Description % To Total Total Units Retail per Units Cream Eyeshadow 5% 200 $ 37.00 Brow Pomade 2% 75 $ 37.00 Multiple Stick 2% 75 $ 75.00 Gel Liner 3% 150 $ 36.00 Look in a Box 2% 75 $ 250.00 Book 2% 75 $ 80.00 Tinted Moisturizer 2% 75 $ 50.00 Face Palettes 2% 75 $ 72.00 Contour Palette 2% 75 $ 72.00 Face Brush Set 2% 100 $ 200.00 Eye Brush Set 2% 100 $ 150.00 Brow Brush 2% 100 $ 30.00 Sensual Skin Enhancer 2% 75 $ 48.00 Fluid Foundation 5% 200 $ 58.00 Etherialist Foundation 5% 200 $ 58.00 Powder Foundation 5% 200 $ 56.00 Concealer 5% 200 $ 30.00 Neo Highlight 2% 75 $ 58.00 Celestial Highlighter 2% 75 $ 44.00 Primer 2% 75 $ 68.00 Bronzer 2% 75 $ 25.00 Eye Primer 2% 75 $ 48.00 Blush 2% 100 $ 37.00 Cream Blush 2% 100 $ 37.00 Eyeshadow Duo 5% 200 $ 42.00 Liquid Liner 3% 150 $ 34.00 Eye Pencil 3% 150 $ 32.00 Essential Mascara 5% 200 $ 32.00 Expert Mascara 5% 200 $ 32.00 Brow Pencil 2% 100 $ 26.00 Lipstick 5% 200 $ 35.00 Matte Lipstick 5% 200 $ 35.00 Lip Satin 5% 200 $ 35.00 Essential Brush Set 2% 100 $ 200.00 TOTAL 100% 4325 $ 2,159.00

Operational Plan Total Retail $ 7,400.00 $ 2,775.00 $ 5,625.00 $ 5,400.00 $ 18,750.00 $ 6,000.00 $ 3,750.00 $ 5,400.00 $ 5,400.00 $ 20,000.00 $ 15,000.00 $ 3,000.00 $ 3,600.00 $ 11,600.00 $ 11,600.00 $ 11,200.00 $ 6,000.00 $ 4,350.00 $ 3,300.00 $ 5,100.00 $ 1,875.00 $ 3,600.00 $ 3,700.00 $ 3,700.00 $ 8,400.00 $ 5,100.00 $ 4,800.00 $ 6,400.00 $ 6,400.00 $ 2,600.00 $ 7,000.00 $ 7,000.00 $ 7,000.00 $ 20,000.00 $ 242,825.00

November

PROMO PLAN DETAILS: December

Cost $ 1,500.00 $ 200.00 $ 45,000.00 $ 15,000.00 $ 15,000.00 $ 43,200.00 $ 119,900.00

December

Cost $ 7,000.00 $ 100,000.00 $ 5,000.00 $ 5,000.00 $ 400,000.00 $ 5,000.00 $ 20,000.00 $ 1,000.00 $ 543,000.00

Technology Internet Access DĂŠcor Construction Rent HR Wages TOTAL Promotional Plan November Launch Party Paid Social Advertising Facebook Instagram Magazines Website Blogger and Influencers Press Release TOTAL

A large part of our promotional plan will utilize social media, primarily Instagram. We will utilize influencers and makeup artists to advertise and try out the product, and they will also be invited to the launch party. Other forms of promotion including magazine features, press releases, printed advertisements, and paid social advertising. We will also send the new Kevyn Aucoin book to influencers and artists.

thank you!

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