INTRO Discovery Scope Business Case Development Testing and Validation Launch
COMPANY OVERVIEW CORE MISSION Balenciaga is known for perfectionism, tailored garments, and fit. They are dedicated to creating "radical and distinctive" ready-to-wear collections for men and women that continually reach perfection in tailoring and in fit.
POSITIONING Balenciaga is known for its radical and distinctive designs that draw in the younger generation -- a group that is looking for pieces that stray away from traditional designer garments -and fashion enthusiasts. As a top ranking high fashion brand, owning Balenciaga is considered a status symbol. Just as Cristobal Balenciaga was considered the "king of fashion", people who wear Balenciaga are high in the fashion food chain.
COMPANY HISTORY 1895: Cristรณbal Balenciaga Eizaguirre is born 1919: First Balenciaga store opens in San Sebastian, Spain 1937: Spanish Civil War forces Balenciaga to relocate to Paris; the House of Balenciaga opens 1951: Balenciaga reinvents the silhouette: broad shoulders and no waist 1950s: Throughout the 50s, Balenciaga designs the ballon jacket, the tunic dress, the chemise, the cocoon coat, the balloon skirt, the baby doll dress, the sack dress. and the Empire line, which featured high-waisted dresses and kimono coats. 1968: Last Balenciaga Paris collection, Balenciaga closes 1972: Balenciaga dies, Jacques Bogart SA buys the rights to Balenciaga Michel Goma becomes the designer, is replaced by Josephus Thimster several years later 2001: What is now Kering buys Balenciaga 2002: Balenciaga introduces menswear 2015: Current Creative Director, Demna Gvasalia, joins the team
SIZE OF BUSINESS Balenciaga 3%
Balenciaga 0.85
0.638
0.425
0.213
0 2012
Total Market 97%
2013
2014
2015
2016
2017
Kering Overall 20
15
Total Market (Chanel, Burberry, LVMH Fashion and Leather, Gucci, YSL) : 32.2B BALENCIAGA: .85B
10
5
0 2012
2013
2014
2015
2016
2017
CHANNEL OF DISTRIBUTION AND PRICING CHANNEL OF DISTRIBUTION Over 115 stores across the world Sold in Nordstroms, Barneys , Selfridges, Bergdorf's, and on Net-A-Porter to name several Balenciaga has a website which consumers can also shop through
PRICING Luxury pricing Shoes range from $595-$2,190 Apparel ranges from $350 for a t-shirt to $4,800 for a leather jacket Depending on size, bags go to around $2,590
TARGET CUSTOMER GEOGRAPHIC Europe Asia United States Big cities
BEHAVIORAL Customer is loyal to BALENCIAGA, but since they are trend/fashion forward, we will still have to keep meeting their expectations Will be eager to buy the products on launch because they want to be the first to have them
DEMOGRAPHIC Millennials and Gen Z Most likely single, could be married but no kids yet Well educated High income (disposable income)
PSYCHOGRAPHIC Leads a fashion forward lifestyle Already likes and prioritizes luxury fashion so they will be willing and looking to buy them now They want the coolest and newest products to stay ahead of the curve
SWOT ANALYSIS STRENGTHS Own by Kering: International luxury group based in Paris Well known for leather goods Favorite brand for fashion blogger and editor Important international brand of boutique
OPPORTUNITIES Increasing brand opportunity Opportunity to think of new fashion-conscious areas : Australia, Brazil Product range extensions
WEAKNESSES Mostly seasonable products Frequent shifting designers Limited Selections
THREATS Bad economy : always relies on wealthy customers Wide customer age group Slowdown in Asia pacific
COMPETITIVE REVIEW GUCCI Number of stores: 529 Pricing: Shoes range from :$320-$2390, apparel ranges from $490-$25,000, bags range from $990 to $14,900 YSL Number of stores: 184 Pricing: Shoes range from :$495-$10k, apparel ranges from $350-$4990, bags range from $995 to $3490
PRODUCT CONCEPT & PRICING
PRODUCT CONCEPT
Cosmetics line with a foundation, lipsticks, highlights, and a bronzer and blush palette Interesting and unique packaging that reflects pieces in Balenciaga collections Cruelty free Expansive shade range
PRICING
Foundation: $56 Bronzer/Blush Palette: $60 Highlight: $48 Lipsticks: $38
MARKET ANALYSIS GEOGRAPHIC Europe Asia United States Big cities
BEHAVIORAL Customer is loyal to BALENCIAGA, but since they are trend/fashion forward, we will still have to keep meeting their expectations Will be eager to buy the products on launch because they want to be the first to have them
DEMOGRAPHIC Millennials and Gen Z Most likely single, could be married but no kids yet Well educated High income (disposable income)
PSYCHOGRAPHIC Leads a fashion forward lifestyle Already likes and prioritizes luxury fashion and cosmetics, so they will be willing and looking to buy them now They want the coolest and newest products to stay ahead of the curve
MARKET ANALYSIS TARGET CUSTOMER Our target customer for BALENCIAGA Beauty is a confident, well educated woman between the ages of 22 and 36 who lives in a big city and values luxury and quality. She wants the newest "it" products and trends, which is why she gravitates towards BALENCIAGA. As someone who supports BALENCIAGA's fashion, she will look forward to buying their beauty line.
TARGET CUSTOMER # Around 178M Millennials in Europe. 83M Millennials in the U.S. 600M Millennials in the Asia-Pacific region. Those are the places Balenciaga is most popular. Total of 861M. We estimate around half of that number is female. 5%-10% of that number fit the rest of our target market, so we estimate our potential customers at around 20M-40M people.
POTENTIAL CUSTOMERS CUSTOMER #1 Our first potential customer is part of Balenciaga's main target market. She is in her early twenties to mid thirties, fashion forward, high income, and loyal to Balenciaga. Brand loyalty and the desire to stay ahead of the curve will drive her to purchase from Balenciaga Beauty.
CUSTOMER #2 Our next potential customer is a member of Gen Z. They are younger than our main target market, and cannot necessarily afford many Balenciaga pieces. Balenciaga Beauty is their way of buying into the status symbol that is Balenciaga. They can afford to splurge on a makeup item or save up for an item from the collection.
CUSTOMER #3 This customer cares less about fashion, but is obsessed with makeup. They will want to purchase from Balenciaga Beauty to try out the newest cosmetic product. They will be less swayed by the brand itself and care most about the product quality.
COMPETITIVE REVIEW
YSL BEAUTY Around 40 makeup products Foundation has a shade range of 18 options Makeup prices range from $29-$60 Cheapest product is a mascara Most expensive product is a couture palette Foundations: A matte one and a luminous one, both $58 Bronzers/blushes: $48-$55 Highlighters: $38-$42 (liquid) Lipsticks: $38-$40 Sold at Macy’s, Dillards, JC Penney, Belk, Sephora, Ulta, Neiman Marcus Top selling product: Rouge Pur Couture lipstick ($37)
TOM FORD Around 76 makeup products Foundations range from 11-18 shades Makeup prices range from $25-$155 Cheapest product is a lip balm Most expensive product is an eye and cheek palette Foundations: $85 Bronzers/blushes: $82-$110 Highlighters: $50-$82 Lipsticks: $36-$54 Sold at Neiman Marcus, Saks, TOM FORD store, Sephora, Nordstrom Top selling product: Tom Ford Lip Color ($54)
COMPETITIVE REVIEW MARC JACOBS BEAUTY Around 69 makeup products Foundations range from 2-28 shades Makeup prices range from $14-$135 Cheapest product is a mini mascara Most expensive product is a brush set Foundations: $46-$55 Bronzers/blushes: $30-$49 Highlighters: $42-$44 (liquid/cream) Lipsticks: $30 Sold at Sephora, JC Penney Best Seller: Dew Drops Gel Highlighter ($44)
GIORGIO ARMANI BEAUTY Around 40 makeup products Foundations range from 4-23 shades Makeup prices range from $25-$120 Cheapest product is an eyebrow brush Most expensive product is their Crema Nuda Foundations: $49-$67 Bronzers/blushes: $40-$62 Highlighters: $40-$62 Lipsticks: $38 Sold at Belk, Macy’s, Sephora, Ulta, Nordstrom, Dillards, G. Armani Boutique, Saks, Neiman Marcus, Bloomingdales Best seller: Luminous Silk Foundation ($64)
HOW WILL BALENCIAGA BEAUTY COMPARE? A more expansive shade range Price range will be in the middle of these other 4 competitors Packaging that breaks away from typical luxury packaging Less "classic" in terms of packaging and more unique and outside the box--our package will reflect Balenciaga pieces Since YSL is also owned by Kering we would try to sell in stores that the group already has a relationship with
TRENDS MACRO TRENDS Rise of the Middle Class: leads to increased spending China tops list of world's biggest cosmetics markets Consumers desire for new shopping experiences Expanding opportunities within augmented reality
COSMETIC/STANDARDS Expansive shade ranges Technology that allows consumer to try on various makeup looks via an app DNA matching for cosmetics – determining ingredients best suited for your skin based on DNA
PRODUCT BENEFITS
CRUELTY FREE As part of our triple bottom line, Balenciaga Beauty will not be testing on animals. A study done by Nielson showed that 57% of the people they polled cared more about their package saying the product inside is cruelty free than anything else. Of the people polled, 42% were Millennials and Gen Z. Currently one of our largest potential markets, China, requires most products to be tested on animals, however those laws seem to be changing and hopefully they will fully change in the next couple years so Balenciaga Beauty can be sold there. All of our biggest competitors, besides Marc Jacobs Beauty, do test on animals, which gives us an advantage.
INCLUSIVE Balenciaga Beauty will focus initially on creating a smaller collection that offers a large number of shades that meet the needs of all of our customers.
PACKAGING Balenciaga Beauty will have unique and innovative packaging that strays away from the standard packaging for luxury cosmetics and reflects some of their distinctive designs.
POSITIONING MEETING CUSTOMER WANTS/NEEDS Customers care about brands being cruelty free, inclusive, and sustainable
WHAT IS BALENCIAGA BEAUTY OFFERING Balenciaga Beauty is establishing itself as a cruelty free luxury makeup brand that offers exciting products and unique packaging. They will follow the lead of great companies like Fenty Beauty, Maybelline and Nars, all of which offer expansive shade ranges.
COMPETITORS Of their direct competitors, Marc Jacobs comes closest in terms of their products, prices and policies. Balenciaga could still be at an advantage because they can be sold in a wider number of stores.
ASSORTMENT PLAN
COST RANGES AND FORECAST: LAUNCH AVERAGE PER UNIT COST
# OF STORES/UNITS FOR LAUNCH
Production costs: $2.5 Packaging and labeling: $1 Formula: $0.10 per unit Average of $3.60 per unit
Products per store: 100 of each lipstick, 100 of each highlighter, 100 of each palette, 20 of each foundation shade Total per store: 1,820 per store Number of stores: ~2,200 (based on # of places we are selling in) Overall totals: Average of 220k of each shade of each product except foundation. average of 44k of each foundation shade. Total # of Units: 4,004,000 Cost per store (# per store x per unit cost): $6,552 Cost overall (total # x per unit cost): $14,414,400 for units Launch length: 3 months (May-July)
EST RETAIL TOTALS Lipstick: 880k x 38 =$33,440,000 Highlighters: 660k x 48 =$31,680,000 Palettes: 880k x 60 = $52,800,000 Foundations: 1.584Mx56 = $88,704,000 Totals: $206,624,000
PROFITS FOR LAUNCH Wholesale Total: $103,312,000 Total Costs: $24,595,400 Total Profit: $78,716,600
COSTS Shipping: 10M Development (testing and formulating products and legal costs): 175K Marketing: 6M Cost of Goods: 14,414,400 Total: $24,595,400
COST RANGES AND FORECAST: ANNUAL AVERAGE PER UNIT COST
# OF STORES/UNITS ANNUALLY
Production costs: $2.5 Packaging and labeling: $1 Formula: $0.10 per unit Average of $3.60 per unit
Products per store: 150 of each lipstick, 150 of each highlighter, 150 of each palette, ~75 of each foundation shade Total per store: 4,350 per store Number of stores: ~2,200 (based on # of places we are selling in) Overall totals: Average of 330K of each shade of palette and lipstick, 330K of each shade of highlighter, and an average of 165K of each shade of foundation. Total # of Units: 9.570,000 Cost per store (# per store x per unit cost): $15,660 Cost overall (total # x per unit cost): $34,452,000 for units Launch length: 3 months (May-July)
EST RETAIL TOTALS Lipstick: 1,320,000 x 38 =$50,160,000 Highlighters: 990K x 48 =$47,520,000 Palettes: 1,320,000 x 60 = $79,200,000 Foundations: 5,940,000x56 = $332,640,000 Totals: $509,520,000
PROFITS ANNUALLY Wholesale Total: $254,760,000 Total Costs: $68,577,000 Total Profit: $186,183,000
COSTS Shipping: 30M Development (testing and formulating products and legal costs): 125K Marketing: 4M Cost of Goods: $34,452,000 Total: $68,577,000
TIME AND ACTION
DESIGN BRIEF
MUST HAVES
WHO IS THE CUSTOMER?
It must be expansive in its shade range, cruelty-free, and unique in its packaging.
65% of Balenciaga’s customers are Millennials, meaning Millennials are our biggest target market. Our customer lives in urban areas throughout the United States, Europe, and Asia. They lead a fashion-forward lifestyle, and they gravitate toward Balenciaga for innovative style that breaks the norm for highend fashion. Balenciaga is a status symbol right now, which is appeals to our customer. They want the newest “it” pieces and products that will put them ahead of the curve. Our customer is in their 20s and 30s, is most likely single, possibly married, but with no children yet. They are well educated and come from a high-income household.
CONCEPT? Our line is luxury and exclusive in pricing and availability, but it is inclusive in terms of variety. The packaging is going to be exciting and different for luxury packaging--no more exclusively black and gold packaging. We want the packaging to reflect pieces from Balenciaga, as shown in our concept board.
DESIGN BRIEF RANGE
SECONDARY PACKAGING
We do not need sizes but we need shade ranges. 36 foundation shades, 4 lipstick shades, 3 highlighters, and 4 palette shades.
For our secondary packaging, we want to incorporate the white Balenciaga logo pattern on a black background. All of the secondary packaging will look the same, but we will need 4 different sizes to meet the specifications of our primary packaging.
INGREDIENTS/PACKAGING The packaging is detailed in the tech packs below. Our main stipulations are that the product must be cruelty-free, but in terms of ingredients, there is flexibility. We just want high quality ingredients with staying power.
LOOK TO BE ACHIEVED? We want the look to be new and exciting with modern packaging that incorporates textures, colors and shapes inspired by Balenciaga accessories. The secondary packaging will incorporate a white Balenciaga pattern on a black background, and all the primary packaging will have bright colors and unique shapes. The primary packaging will reflect the accessories as shown in the following images.
TECH PACK
TECH PACK
CREATIVE BRIEF WHAT IS THE PROJECT? This is an inclusive, cruelty free makeup line that is meant to enhance natural beauty and give an effortless clean look. The packaging is unique and based off Balenciaga pieces, but the product photography should match the clean look. Through ads, billboards, model collabs and commercials, we want customers to get a sense of those elements and want to buy into this latest product.
CUSTOMER NEEDS/WANTS natural, versatile products that are long lasting cruelty free manufacturing inclusive shade ranges newest "it" product
TARGET MARKET Our target customer for BALENCIAGA Beauty is a confident, well educated woman between the ages of 22 and 36 who lives in a big city and values luxury and quality. She wants the newest "it" products and trends, which is why she gravitates towards BALENCIAGA. As someone who supports BALENCIAGA's fashion, she will look forward to buying their beauty line.
WHAT DO WE WANT CONSUMERS TO KNOW? Customers should know that buying these products will give them the effortless, natural, beautiful look that the advertisements show. They should feel confident that their products are not tested on animals. They should know that these products are the current "coolest" cosmetic launch, and that they need to buy into it.
CREATIVE BRIEF WHAT IS PURPOSE OF THE PROJECT? The purpose to expand Balenciaga's reach, so potential customers and those viewing ads and commercials should get a sense of what it means for them to buy Balenciaga even if they have little prior knowledge of the brand. Long time Balenciaga customers should feel reaffirmed in what they believe about the brand.
BRAND POSITIONING STATEMENT Balenciaga Beauty is a cruelty-free luxury makeup brand that offers exciting products and unique packaging, as well as expansive shade ranges.
REGULATORY AND IP REGULATORY Misbranding and adulteration are illegal "Companies and individuals who manufacture or market cosmetics have a legal responsibility to ensure the safety of their products. Neither the law nor FDA regulations require specific tests to demonstrate the safety of individual products or ingredients. The law also does not require cosmetic companies to share their safety information with FDA. However, FDA can pursue enforcement action against products on the market that are not in compliance with the law, or against firms or individuals who violate the law." Company must be registered INTELLECTUAL PROPERTY Name (TM) Logo (already TM through Balenciaga) Packaging (TM)
PRODUCTION AND LOGISTICS WAREHOUSE STRATEGIES Most of the cosmetic products that we have are perishable or need refrigeration require a license to handle products We have skilled warehouse employees who have high education in this field We plan to source from factories in L'Oreal's factory in Little Rock, AK. YSL (also under Kering) manufactures there . Primary and Secondary packaging from China - Lower cost, better service Transportation Strategies ( for the delivery system) As we are planning the expansion into a global market, transportation includes short to long distance Train Trucking Air transportation
PRODUCTION AND LOGISTICS LAUNCH INVENTORY Products per store: 100 of each lipstick, 100 of each highlighter, 100 of each palette, 25 of each foundation shade Total per store: 2,000 per store Number of stores: ~2,200 (based on # of places we are selling in) Overall totals: 200k of each shade of each product except foundation. 50k of each foundation shade. ONGOING INVENTORY Overall totals: in the warehouse, 2500k of each shade of each product except foundation. 75k of each foundation shade. LEAD TIME 12-14 weeks to manufacture our ongoing inventory and ship to warehouse COST We are on track with our budget QUALITY: TESTING PLAN Expiration date Side effects Shades Ingredients review Microbial testing Stability Testing
QUALITY ASSURANCE Minimizing human error: making sure every employee is fully briefed on their job and actually doing their job Making sure all materials are accurate and meet our specs Making sure machines are working properly before manufacturing units Placing a quality assurance team at each manufacturing plant Making sure we are aware of our customer's quality expectations through polls and testing Ingredients list reviews and regulation reviews We will run market tests via an external company Use ingredients from verified list from beginning
QUALITY CONTROL Our quality assurance and control team will also be overseeing the quality of each product at every place where we manufacture The team will also verify that the products match the appropriate tech packs and specs post-production All components of primary and secondary packaging will be checked Tests will be done externally 1 out of every 30 units will be inspected We will also run random inspections consistently FInal inspections on all units
PRODUCT TESTING TOXICOLOGY TESTING Acute Toxicity Testing Eye and Skin Irritation/Corrosion Testing Skin Sensitization Testing Carcinogenicity Testing MICROBIOLOGICAL TESTING Preservative Challenge Testing Quantitative Test for Mesophile Bacteria Quantitative Count for Yeasts and Fungi PACKAGE TUMBLE TESTING Utilize tumble simulators to test how well packaging holds up
CONSUMER TESTING Polls related to what consumers are looking for in makeup products and what they feel is most important Polls about general attitude toward Balenciaga Gathering groups to test each variation of the product and provide feedback Send blind samples to a curated list of people and have them give feedback Provide outlet for consumers to voice their opinions -customer service, reviews, social media Educating consumer on what the product is before running tests
MARKET CLAIMS FOUNDATION Foundation is hydrating Foundation has a natural finish Foundation is dewy Foundation provides buildable coverage Foundation is lightweight Foundation is cruelty free Foundation has easy to use packaging
HIGHLIGHTER Highlighter looks dewy Highlighter is blendable Highlighter is glowy Highlighter illuminates skin Highlighter melts into skin Highlighter makes skin appear luminous Highlighter is cruelty free
LIPSTICK Lipstick is creamy Lipstick feels luxurious Lipstick feels rich Lipstick has a natural look Lipstick is highly pigmented Lipstick is cruelty free Lipstick hydrates
BRONZER/BLUSH PALETTE Bronzer and blush are blendable Bronzer and blush powders are finely milled Bronzer has a matte finish Blush gives a healthy glow Products are made cruelty free Bronzer makes skin look sunkissed Powders are highly pigmented
LABELING FD&C ACT This act gives the FDA authority to oversee the safety of cosmetics, as well as food and drugs *
FPLA The Fair Packaging and Labeling Act which is under the Federal Trade Commission* The Fair Packaging and Labeling Act (FPLA or Act), enacted in 1967, directs the Federal Trade Commission and the Food and Drug Administration to issue regulations requiring that all "consumer commodities" be labeled to disclose net contents, identity of commodity, and name and place of business of the product's manufacturer, packer, or distributor.
*These regulations and laws are designed to protect consumers from health and hazardous practices. They are also intended to help inform consumers about the personal items they decide to purchase
FPLA Example
https://www.ecomundo.eu/en/blog/labeling-cosmetics-us-eu
PACKAGING AND LABELING The labeling of cosmetic products provides a set of obligations Therefore, the function of cosmetics can be clearly identified and cosmetics can be used appropriately
FOUNDATION Made in the USA with the USA and/or imported ingredients The list of the final ingredients Cruelty-free Spectrum sunscreens with an SPF value of 15
Refers to Insert when the required information doesn't all fit on a container's label
Direction: Shake well and apply the foundation
happens with smaller cosmetics
with a brush or sponge for light to medium coverage
packages
1 Fl. Oz. 30 mL www.balenciagabeauty.com
PAO (Period After Opening)
Trade mark Balenciaga Beauty
PACKAGING AND LABELING BLUSH AND BRONZER PALETTE Made in the USA with the USA and/or imported ingredients The list of the final ingredients Cruelty-free Direction: Using a brush, apply blush to the
Refers to Insert when the required information
cheeks and blend well.
doesn't all fit on a container's label
Sweep bronzer across forehead, cheeks, and jawline.
happens with smaller cosmetics packages
2 X poids Net Wt. 0.16 Oz. 4.8g www.balenciagabeauty.com PAO (Period After Opening) How long the product will stay good after the package is unsealed
Trade mark Balenciaga Beauty
PACKAGING AND LABELING LIPSTICK
Made in the USA with the USA and/or imported ingredients The list of the final ingredients
Cruelty-free
Direction: Start by lining the lips with it then apply lipstick with the Brush working for the center of the lips outwards
3.5g - NET WT. 0.12 OZ
www.balenciagabeauty.com
PAO (Period After Opening) How long the product will stay good after the package is unsealed
Trade mark Balenciaga Beauty
PACKAGING AND LABELING HIGHLIGHTER Made in the USA with the USA and/or imported ingredients The list of the final ingredients Oil-free Lightweight
Cruelty-free
Refers to Insert when the required information doesn't all fit on a container's label
Direction: Apply highlighter evenly on face for an dewy
happens with smaller cosmetics
glow, or wear it on the high points of the face
packages
22.0 mL / 0.75 US fl. oz. www.balenciagabeauty.com PAO (Period After Opening) How long the product will stay good after the package is unsealed
Trade mark Balenciaga Beauty
INTEGRATED MARKETING OBJECTIVES We aim to increase sales by 9.3% in our first 3 months We aim to increase sales by 20% annually in the first few years We want to expand our reach We want to make ourselves accessible to a wider audience which will increase our company profits
MERCHANDISE FOR PROMO We will focus on promoting all 4 of our new products Foundation Highlighter Lipstick Blush/Bronzer Palette
MARKETING ACTIVITES Billboards Influencers Model Collaboration Social Media PR Packages Launch Party
PROMO MESSAGE Balenciaga is proud to announce an expansion of our brand in Balenciaga Beauty. We are releasing a collection that will include foundation, highlighter, lipsticks and a bronzer and blush palette. These luxurious products will be must-have items to add to your makeup collection and to incorporate into your daily life. Be the first to get them on May 1, 2021.
MARKETING SCHEDULE
JOAN SMALLS - FACE OF BRAND
ONGOING MARKETING
MARKETING MIX PRODUCT
Design and Packaging With the black and white simple logo packaging and clearly designed product Four cosmetic products with unique primary packaging and consistent secondary packaging Quality PRICE
Psychological pricing strategy Luxury pricing to maintain brand's reputation and prestige
PROMOTION
Continuing to work with influencers that are a good fit for our brand Well placed advertisements Continue running commercials
PLACE
Stores in United States, Europe, and Asia Actively in E-commerce - website design
POTENTIAL PRODUCT CHALLENGES
Quality Test Failure Claims Test Failure Manufacturer Delays Product Defects Competitive Changes Customs Delays
PRODUCT LIFECYCLE INTRODUCTION
The product begins to become known to the market through social media with different languages since our brand is a global brand Focus on brand awareness Advertising through the Balenciaga brand MATURITY
Sales amount is becoming stable Steps to consider more about individual customer's preferences Consider the sales of competitor brand and approach customer with products that are different from them Increasing the brand value
GROWTH
Market value is continually rising as people begin to get attention Sales Grow Marketing goal is to develop the product Increasing the number of the products to sell in the global market
DECLINE
Launching a limited edition or having a collaboration with other brands Expand a new product line Different target customer
CONCLUSION Balenciaga Beauty: Cruelty free and inclusive foundation, lipsticks, highlighters, bronzer/blush palette Increase profits by 12% at launch and around 20% annually for Balenciaga Keep a clean and simple marketing campaigns Unique packaging
Business of Fashion. www.businessoffashion.com/. Accessed 25 May 2018. Customer Profile Balenciaga's Fans Interests & Passions.” Balenciaga Customer Profile, customer-profile.com/apparel-andfashion/clothing/unisex/balenciaga-customer-profile.html. “Extreme Brand Loyalty.” NYMag.com, nymag.com/nymetro/shopping/fashion/fall04/9635/index2.html. FDA. www.fda.gov/Cosmetics/GuidanceRegulation/LawsRegulations/ucm074162. Accessed 25 May 2018 FTC. www.ftc.gov/enforcement/rules/rulemaking-regulatory-reform-proceedings/ fair-packaging-labeling-act. Accessed 25 May 2018. . Harpers Bazaar. www.harpersbazaar.com/uk/beauty/beauty-shows-trends/a14415615/beauty-trends-2018/. Accessed 25 May 2018. Intertrek. www.intertek.com/microbiology/personal-care/. Accessed 25 May 2018. Kering. www.kering.com/en/press-releases/ balenciaga_appoints_demna_gvasalia_as_artistic_director_of_the_collections. Accessed 18 Apr. 2018. Kering. www.kering.com/en/finance/group/brands-key-figures. Accessed 18 Apr. 2018. L'Oreal. www.lorealusa.com/group/discover-l'or%C3%A9al-usa/ l%E2%80%99or%C3%A9al-usa-facts-and-figures. Accessed 25 May 2018. Net-A-Porter. www.net-a-porter.com/us/en/. Accessed 25 May 2018. PETA. www.peta.org/issues/animals-used-for-experimentation/animals-used-experimentation-factsheets/ product-testing-toxic-tragic/. Accessed 25 May 2018. Profitable Venture. www.profitableventure.com/cost-start-a-lipstick-line/. Accessed 25 May 2018. Sephora. www.sephora.com/. Accessed 25 May 2018. Small Business. smallbusiness.chron.com/. Accessed 25 May 2018. Statista. www.statista.com/. Accessed 25 May 2018. WWD. wwd.com/. Accessed 25 May 2018.
FOUNDATION: hydrating, provides hydration, replenishes your skin, provides moisture, restores moisture, helps skin retain moisture, revives dry skin, revitalizes dry skin, hydrates and soothes, lightweight, cake-free, natural, light to medium coverage, enhances natural beauty, natural finish, natural coverage, cruelty free, not tested on animals, SPF 15, provides SPF protection, protects from sun, all skin types, safe for sensitive skin, fresh, fragrance free, long lasting, 24 hour staying power, durable packaging, purse proof packaging, user-friendly packaging, easy to use packaging, easy to use pump, mess free packaging, promotes healthy glow, improves skin, boosts glow, blurs imperfections, covers imperfections, hides imperfections, provides coverage, never tested on animals, no animal testing
LIPSTICK: creamy, creamy formula, creamy finish, natural, your lips but better, coverage, beautiful coverage, pigmented, high pigmentation, highly pigmented, hydrating, soothes lips, plumps lips, hydrates lips, provides lips with all day hydration, long lasting, cruelty free, not tested on animals, never tested on animals, no animal testing, glides onto lips, glides across lips, easily glides onto lips, glides easily across lips, enhances lips, pop of color, provides a pop of color, lightweight feel, feels lightweight, lightweight on lips, buildable coverage, shiny, sheer, luxurious, rich, buttery, moisturizing, moisturizes lips, provides moisture to lips, protects lips, comfortable, comfortable on lips, comfortable all day, showstopping color, showstopping, stunning, stunning colors, stunning on lips, stunning formula, user friendly packaging, easy to use packaging, durable packaging, travel friendly packaging, unique, unique packaging, unique formula
HIGHLIGHT: blendable, easy to blend, melts into skin, provides glow, dewy, glowy, gives skin a healthy glow, shimmery, sheer, luminous, buildable, hydrating, weightless, long lasting, natural, lights skin from within, lit from inside, lit from within, creamy, blends seamlessly, lightweight, fresh, day to night, takes you from day to night, last all day, lasts all night, oil free, not tested on animals, cruelty free, delicate, blinding, wow factor, provides wow factor, offers wow factor, enhances natural beauty, works with your natural beauty, works with your natural features, illuminates the skin, illuminates, blends seamlessly with foundation, blends into foundation, blends into bare skin, blends into skin, blends seamlessly into BB foundation, works with foundation to enhance natural beauty, never tested on animals, no animal testing, glides easily onto skin, glides onto skin, glides on skin
PALETTE: Blendable, easy to blend, finely milled, matte, matte finish, soft matte finish, buttery, glides on skin, long-lasting, natural finish, sunkissed, soft, bright, easy to use, user friendly, beginner friendly, healthy, radiant, lively, durable packaging, sleek packaging, easy to use packaging, provides a pop of color, gives cheeks a pop of color, healthy glow, brings cheeks to life, pigmented, never tested on animals, no animal testing, pigmented, stunning, highly pigmented, blends seamlessly, blends naturally into skin, blends naturally into foundation, cohesive with foundation and highlighter, classic, desirable, it product, it packaging, unique, unique packaging, unique palette, ultimate duo, top duo, best duo, silky, subtle, natural, fine, shimmering, shimmery, shimmers