Mineral Makeup Marketing Study

Topics: Cosmetics, Human skin color, Human skin Pages: 16 (4860 words) Published: March 14, 2011
Table of Contents. BAREMINERALS

1. Executive Summary2
2. Situation Analysis2
2.1 Company and Product History2
2.2 Product Evaluation5
2.3 Consumer evaluation7
3. Brand Positioning8
3.1 Target audience9
3.2 Target Market Specifications9
5. The USP (Unique Selling Proposition)11
6. The Creative Strategy12
7. The IMC Program12
8. Advertising Schedule15
9. Budgeting16
10. Evaluation16
15. References18

1. Executive Summary
As the perfume, cosmetic and toiletry preparations industry entered the 1990s, it faced many challenges including regulatory changes, product safety concerns, increasing environmentalism, natural ingredients, pressure from the growing animal right movement, economy and market channels for distribution. Nowadays, the industry is expected to continue to beneft from an increasing awareness of health and wellbeing. In cosmetic industry, fashion trends, multi-functional products and greater demand among slected consumer segments, particularly ethnic, teenagers and baby-boomers, are the key drivers in color cosmetics. 2. Situation Analysis

2.1 Company and Product History
Cosmetics, perfumes and various others personal care products have longed played an important role in Australian society, indeed personal care products are thought to have been an integral part of mankind since the beginning (IBIS, 2010).

The increased awareness will lead to the incorporation of more health-oriented products while an ageing population will demand more specialised products. Continued product development in new fusion products (such as cosmeceuticals, nutria-cosmetics and nutriceuticals) and eco-friendly products will help stimulate demand for industry products (IBIS, 2010).

In March 2010, Shiseido Company completed the acquisition of Bare Escentuals, through its subsidiary, Blush Acquisition Corporation. Bare develops, markets and sells cosmetics, skin care, and body care products under primarily under bareMinerals, RareMinerals, Buxom and MD formulations brands worldwide. The company primarily operates in the US. Bare Escentuals is headquartered in San Francisco, California and employs about 2,568 people of which 1,164 are full-time employees. The company recorded revenues of $557.5 million during the financial year ended December* 2009 (FY2009), an increase of 0.2% over 2008. The operating profit of the company was $159 million in FY2009, a decrease of 9.3% compared to 2008. The net profit was $98.1 million in FY2009, an increase of 0.2% over 2008 (Bare Escentuals, 2010).

Significant environment
The 3 main principal factors affecting the cosmetic industry are: political, technological and cultural. As with the food industry, the Australian Cosmetic industry is also subject to mandatory labelling requirements as set out by the Trade Practices (Consumer Product Information Standards) Cosmetics Regulations 1991. Compliance with consumer product safety and information standards is also mandatory. These standards must be met by all suppliers including cosmetics retailers, manufacturers, importers and distributors. Cosmetic and toiletry products are classified as substances or preparations intended for placement in contact with any external part of the body, with a view to altering the odours of the body, changing its appearance, cleansing it, maintaining it in good condition, perfuming and protecting it (IBIS, 2010).

A general tariff rate of 5% applies to toiletries that are imported into Australia (imports of toiletries are included in ANZSIC class C2546-Cosmetic, Toiletries and Perfume Manufacturing). Imports from developing countries and Canada are not taxed. However, regarding to taxation, the Cosmetic and Toiletry industry is not subject to any industry specific taxes. Most products sold within this industry attract a GST of 10% (IBIS, 2010).

There is little technological change directly pertaining to the Australian Cosmetic and...
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