methodÂŽbeauty
OVERVIEW MEET THE FOUNDERS method® TIMELINE PRODUCT CONCEPT SWOT TARGET CUSTOMER PRODUCT DETAILS COMPETITIVE ANALYSIS TRENDS PRODUCT DETAILS/COST TECH PACKS SOURCING/PRODUCTION DISTRIBUTION PURCHASE ORDER PACKAGING MARKETING TIME & ACTION WORKS CITED
MEET THE FOUNDERS methodÂŽ began when roommates Adam Lowry and Eric Ryan teamed up in 2000 in a fight against dirty. The founders of what has become one of America's fastest-growing private companies were tired of all of the toxic ingredients in typical cleaning supplies. They knew there was a market for products that fought dirt without being dirty themselves. With Ryan taking the lead on the aesthetics and Lowry bringing knowledge on how to make non-toxic products, the dynamic duo changed the cleaning game.
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TIMELINE 20 01
20 02
20 03
20 04
20 05
20 06
20 07
20 08
20 09
20 10
20 12
20 15
method® lands their first sale, consisting of 4 of their cleaning sprays, with a grocery store in California.
method® launches in both Canada and the United Kingdom.
method® becomes a Cradle to Cradle endoresed company
The team expands when they bring on Karim Rashid, a designer enlisted to help with packaging. method® begins its relationship with Target.
Lowry and Ryan are named PETA's People of the Year and method® is ranked as INC 500's 7th fastest growing private business.
method® launches a laundry detergent featuring smartclean technology.
method® brings out the teardrop soap bottles that the brand has become known for.
method® beomes a B Corporation.
method® teams up with Ecover, forming the world's biggest cleaning company.
method® releases their first laudry detergent.
method® starts making thier bottles from 100% pot-consumer recycled plastic.
method® opens the doors to the cleaning product industry's very first LEED platinum-certified soap factory, which was located in Chicago. 4
PRODUCT CONCEPT method® beauty will launch with three products, a concealer, a mascara, and a foundation. The line will be centered around inclusivity, sustainability, and ethical practices just as the rest of the brand is. They will focus on using clean ingredients that benefit the consumer.
01
02
03
CLEAN LASH Mascara
BRIGHT EYES Concealer
FRESH FACE Foundation
A natural, clean mascara that lengthens your lashes.
A lightweight concealer that brightens your face & covers blemishes.
A fresh, hydrating formula to use alone or as a bse for the rest of your makeup.
”
we have big plans to make the world a cleaner, greener, more colorful place. we invite everyone to join us as we pioneer a future where doing business is doing good for all.
”
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PRODUCT MOOD BOARD
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SWOT ANALYSIS WEAKNESSES
STRENGTHS • Relationship with Target • International expansion • Strong reputation across many age ranges • Brand loyalty
OPPORTUNITIES • Expanding product range • Increasing channels of distribution • Further growing social media accounts
• • • •
No stand alone stores Difficult name to search Weak marketing tactics Fails to generate interest via social media
THREATS • Oversaturation in the industry • Copycat companies • Economic conditions
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TARGET CUSTOMER DEMOGRAPHIC
PSYCHOGRAPHIC
• • • •
• • • • •
Primarily female Ages 20-50 Lives in urban areas Well educated, at least an undergraduate degree • Middle to upper middle class
BEHAVIORAL • • • •
Buys non-toxic products Quality over quantity shopper Always recycles Spends time hiking, doing yoga and spending time outdoors
Artistic Creative Curious Trendy Fresh, dewy makeup
GEOGRAPHIC • United States • More likely in urban areas
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CUSTOMER PROFILE
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MARKET RESEARCH
As of 2017, the cosmetics industry was estimated to be worth around 532 billion USD, and it is only growing. The next couple years would be a great time for method速 to expand their product range with a beauty line. Starting with the United States would give them a great and relatively safe way to test the market for the products. As Target is one of the main places that consumers shop for method速 in the United States, placing the products in Target stores and the method速 e-commerce site would be the smartest option for selling the line. Consumers across the United States love method速, but the cosmetics line would sell best in urban areas, so making sure larger numbers of the products hit those stores will result in the highest profit.
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COMPETITIVE ANALYSIS DIRECT INDIRECT Pixi Pacifica Milani
Mascara
Pixi: $11-18 Pacifica: $13.99-15.99 Milani: $8.99 Method: $14
Glossier Milk Makeup RMS Beauty
Concealer
Pixi: $12-24 Pacifica: $11.29-15.99 Milani: $6.49-11.99 Method: $16
Foundation
Pixi: $22-24 Pacifica: $8.99-17.99 Milani: $7.19-9.99 Method: $18 11
PERCEPTUAL MAP HIGH QUALITY
LOW PRICE
HIGH PRICE
LOW QUALITY
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TRENDS IN BEAUTY 01 02 03 04 05 06 07 08 09 10
SUSTAINABILITY FORMULA TRANSPARENCY DIVERSITY STREAMLINED BEAUTY ROUTINES HEALTH COMBINED WITH BEAUTY ANTI-POLLUTION AT-HOME FACIALS POPS OF COLOR HEALING SOLUTIONS LAB-INSPIRED PACKAGING 13
MACRO TRENDS 01 02 03 04 05 06
FULLY INCLUSIVE BEAUTY RESPONSIBLE CONSUMERISM HOME-FIRST MENTALITY FOOD FOR MEDECINE HEALTH COMBINED WITH BEAUTY LUXURY FOR MILLENNIALS
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PRODUCT RANGE
01
02
03
CLEAN LASH Mascara
BRIGHT EYES Concealer
FRESH FACE Foundation
A natural, clean mascara that lengthens your lashes. Available in 1 shade. ($14)
A lightweight concealer that brightens your face & covers blemishes. Available in 10 shades. ($16)
A fresh, hydrating formula to use alone or as a base for the rest of your makeup. Available in 35 shades. ($18)
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COST PER UNIT MASCARA
CONCEALER
FOUNDATION
Component
Cost
Component
Cost
Component
Cost
Packaging
$0.75
Packaging
$0.75
Packaging
$1.00
Labeling
$0.25
Labeling
$0.25
Labeling
$0.50
Formula
$0.05
Formula
$0.04
Formula
$0.19
Labor
$2.00
Labor
$2.00
Labor
$2.00
Shipping
$2.00
Shipping
$2.00
Shipping
$3.00
Total production $5.05 costs:
Total production $5.04 costs:
Total production $6.69 costs:
Wholesale price: $9
Wholesale price: $11
Wholesale price: $13
Retail price:
Retail price:
Retail price:
$14
$16
$18
16
TECH PACK
92mm
155mm
100mm
33mm Date: 02/28/19 Product Name: FRESH FACE Product #: 00123045 Packaging Color: black Font Color: silver Description: foundation Measurements: See above
25mm
30mm Date: 02/28/19 Product Name: BRIGHT EYES Product #: 00123234 Packaging Color: black Font Color: silver Description: concealer Measurements: See above
Date: 02/28/19 Product Name: CLEAN LASH Product #: 00123065 Packaging Color: black Font Color: silver Description: mascara Measurements: See above
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SOURCING & PRODUCTION Although method® owns their own soap factory (pictured below) and manufactures most of their products at that location, because they have not done makeup before, it will be best to outsource manufacturing/ production. method® prioritizes sustainability, transparency, and ethical practices, and to keep in line with the brand, the method® beauty products will be made in places that hold the same values close. Schwan Stabilo Cosmetics Gmbh is a cosmetics manufacturer in Germany that supports sustainable and ethical practices and would be a good fit for method®. Because shipping via boat is the most financially and ethically responsible, that is the option that makes the most sense for method ®. Once the products have reach the United States, they will be transported via ground shipping to the Targets that they are being sold in.
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CHANNELS OF DISTRIBUTION method® beauty will initially be sold exclusively in the United States via method®’s website, Target’s website, and Target stores.
01 methodhome.com 02 target.com 03 Select Target stores in the U.S.
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PURCHASE ORDER
method® VENDOR
Method
Ship To
Address
820 W Jackson Blvd #400 Chicago, IL 60607
Address 2539 Piedmont RD Ne Atlanta, GA 30324
312-660-3413
Phone
Phone
Target Store #1197
P.O. #: 001232 Date: 2/15/20
404-720-1081
Shipping Method
Shipping Terms
Date
GROUND
FOB
April 21, 2020
QTY
ITEM #
DESCRIPTION
UNIT PRICE
LINE TOTAL
30
001123543
Fresh Face Foundation Shade 05
$13.00
$390.00
30
454358038
Bright Eyes Concealer Shade 09
$11.00
$330.00
80
234980359
Clean Lash Mascara Shade 01
$9.00
$720.00
SUBTOTAL
$1,440.00
TAX
$90.00
TOTAL
$1,530.00
INSTRUCTIONS:
Signature:
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PRODUCT PACKAGING
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MARKETING PLAN The marketing plan will focus on generating excitment about the product launch through the use of Instagram ads, influencer collaborations, billboards, promotions on the Target Cartwheel app, and PR Packages.
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MARKETING BUDGET Activity
Cost
Instagram Ads
$10,000
Influencers
$25,000
Billboards
$30,000
PR Packages
$5,000
Total
$70,000
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TIME & ACTION STAGE
ACTION
DATE
1
Finalize Line Range
1-May-19
2
Find Manufacturer
1-Jun-19
3
Source Ingredients
5-Aug-19
4
Source Primary Packaging
6-Sep-19
5
Source Secondary Packaging
12-Sep-19
6
Confirm Shade Range
1-Oct-19
7
Test Shades
12-Oct-19
8
Prototype Due
5-Nov-19
9
Samples Due
1-Dec-19
10
Complete consumer testing
30-Jan-20
11
Marketing Strategy
5-Feb-20
12
Meetings with Target
13-Feb20
13
Confirm Numbers
1-Mar-20
14
Confirm Production Time
3-Mar-20
15
Shoot Marketing Materials
1-Apr-20
16
Start Production
15-Apr-20
17
Confirm Shipping Method/Time
1-May-20
18
Release Marketing Materials
15-May-20
19
Complete Production
22-May-20
20
Pre-shipment Inspection
25-May-20
21
Ship Products
26-May-20
22
Products Hit Floor
15-Jun-20
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WORKS CITED Danziger, P. N. (n.d.). 6 Global Consumer Trends For 2019, And The Brands That Are Out In Front Of Them. Retrieved March 2, 2019, from https://www.forbes.com/sites/pamdanziger/2019/01/13/6-globalconsumer-trends-and-brands-that-are-out-in-front-of-them-in-2019/ March, B. (2018, December 14). 13 big beauty trends for 2019. Retrieved March 2, 2019, from https:// www.harpersbazaar.com/uk/beauty/skincare/a25568595/beauty-trends-2019/ method | our story. (n.d.). Retrieved February 25, 2019, from https://methodhome.com/about-us/ our-story/ method | transparency. (n.d.). Retrieved March 2, 2019, from https://methodhome.com/transparency/ Research, Z. M. (2018, June 22). Global Cosmetic Products Market Will Reach USD 863 Billion by 2024: Zion Market Research. Retrieved March 1, 2019, from http://globenewswire.com/news-release/2018/06/22/1528369/0/en/Global-Cosmetic-Products-Market-Will-Reach-USD-863-Billion-by2024-Zion-Market-Research.html What are the startup costs for a cosmetic business? – Chemists Corner. (n.d.). Retrieved March 2, 2019, from https://chemistscorner.com/what-are-the-startup-costs-for-a-cosmetic-business/ Panjiva. (n.d.). Retrieved March 2, 2019. Target : Expect More. Pay Less. (n.d.). Retrieved March 3, 2019, from /
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WORKS CITED Under(cover) Perfecting Coconut Face Primer - Marc Jacobs Beauty | Sephora. (n.d.). Retrieved March 3, 2019, from https://m.sephora.com/product/under-cover-perfecting-coconut-face-primer-P397671?skuId=1711076&om_mmc=aff-linkshare-redirect-QFGLnEolOWg&c3ch=Linkshare&c3nid=QFGLnEolOWg&affid=QFGLnEolOWg-UO27fXSf2yE9o078sDujDA&ranEAID=QFGLnEolOWg&ranMID=2417&ranSiteID=QFGLnEolOWg-UO27fXSf2yE9o078sDujDA&ranLinkID=15-1
Work Accessories | ModCloth. (n.d.). Retrieved March 3, 2019, from https://www.modcloth.com/shop/ work-accessories?featuring=136145?
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Custom Tissue. Designed, sealed, delivered. | noissue. (n.d.). Retrieved March 3, 2019, from https://www. noissue.co/
Barely There Makeup Looks - Ellie Wilde. (n.d.). Retrieved March 3, 2019, from https://elliewilde.com/ prom-makeup/barely-makeup-looks/
Bath & Unwind | Beauty, Skincare, Wellbeing & More. (n.d.). Retrieved March 3, 2019, from https://www. bathandunwind.com/
Rutabaga - Home. (n.d.). Retrieved March 3, 2019, from https://www.facebook.com/lerutabaga
Mascara | Milk Makeup Launch | POPSUGAR Beauty Photo 9. (n.d.). Retrieved March 3, 2019, from https:// www.popsugar.com/beauty/photo-gallery/40044130/ image/40044133/Mascara
17 of the Most Impressive Yoga Poses on Instagram | SELF. (n.d.). Retrieved March 3, 2019, from https:// www.self.com/story/advanced-yoga-poses
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WORKS CITED Indoor Potted Plants Delivered to Your Door – The Sill. (n.d.). Retrieved March 3, 2019, from https://www. thesill.com/?p=514&utm_medium=Social&utm_ source=Pinterest
How to Decorate a Minimal Interior with Personality - Beige Renegade. (n.d.). Retrieved March 3, 2019, from http://www.beigerenegade.com/2016/12/11/decorate-minimal-interior-personality/
Corporate Sustainability: Method Soap Factory. (n.d.). Retrieved March 3, 2019, from https://www.autodesk. com/redshift/corporate-sustainability-method-soap-factory/
Premium Beauty News - CEP Industry: a two piece-mascara! (n.d.). Retrieved March 3, 2019, from http://www.premiumbeautynews.com/en/CEP-Industry-a-two-piece-mascara,2705
30mL Black Mini Airless Dispenser with Cap | U.S. Plastic Corp. (n.d.). Retrieved March 3, 2019, from https:// www.usplastic.com/catalog/item.aspx?sku=68190&gclid=Cj0KCQiAk-7jBRD9ARIsAEy8mh4D4sH2sz7fuTkR2Ods_iub7tuK91nHafjDgoo2jE8v_t4n9RQ4ObIaAvrxEALw_wcB
Natural Beauty Tips. (n.d.). Retrieved March 3, 2019, from https://www.womenshealthmag.com/beauty/ g19983187/natural-beauty-tips/
keaton milburn on Instagram: “time is money, every second im collectin.” (n.d.). Retrieved March 3, 2019, from https://www.instagram.com/p/BWoXrGXjtF6/
method | our soap factory. (n.d.). Retrieved March 3, 2019, from https://methodhome.com/beyond-the-bottle/soap-factory/
Honeybee Gardens Powder - Mineral Makeup - Pale Pink Eyeshadow - $8.00. (n.d.). Retrieved March 3, 2019, from https://www.lulus. com/products/honeybee-gardens-flirtatious-pale-pink-mineral-powder/245210.html?utm_source=pinterest&utm_medium=pin&utm_campaign=aug15&MjI3Mnw0ODMwfDIzMTAxMDd8NzlmYjQ
11 Concealers You Can Wear Without Foundation | SELF. (n.d.). Retrieved March 3, 2019, from https:// www.self.com/gallery/best-lightweight-concealers
Blush- Editorial Story // Solstice Magazine — Jenny Wu Photography. (n.d.). Retrieved March 3, 2019, from http://www.jennywuphotography.com/theblog/ blush-editorial-story
EDEN ROSE ANDREWS FASM 430 - Capstone