MODE Cosmetics

By Kathryn, Christie, Ploy and Sophia

Contents• Introduction• Marketing Mix for Liquid Foundation• Marketing Mix for Nail Polish• Budget• Conclusion• Bibliography

MODE Cosmetics

Introduction• Manufacturer of cosmetics

• Founded and headquartered in Sydney, Australia.

• The higher end of the cosmetic market

• Mid-high income female customers between the ages of 18 – 30 years old

• Variety of cosmetic products

• Available in retail counters and online

Marketing Mix - FoundationFoundation Product Price Promotion Placement

ObjectiveTo dominate market share of the

Liquid Foundation sector by 60% by June 2012.

To set price of MODE Liquid Foundation 10% higher than competitors

by November 2011.

To increase sales of MODE Liquid Foundation by 20%

by January 2012.

To increase distribution channels of MODE Liquid

Foundation domestically and internationally by 30% by June

2012.

StrategyTo introduce a unique dispersible

liquid foundation pen.To source and change to a

more reliable supplier.

To create a new Television advertisement with a

celebrity endorsement.

To create an online store on MODE’s website that enables domestic and international

customers to purchase MODE foundation.

Performance Measure

To compare data gathered from ABS in regards to the industry income of beauty products and the income generated by Mode, between the

annual period of July 2011 and June 2012.

Compare Liquid Foundation prices of

competitors against MODE Liquid Foundation.

The sales during the advertised period

exceeding the budget for advertising.

Compare online sales with in store sales between January

2012 and January 2013.Analysing sales before the new advertisement and

after.

Corrective Action

To introduce another new unique design of packaging for MODE

Foundation.

To change pricing method by setting price in line

with competition.

To change the method to personal selling by

providing free samples and Make-up demonstrations in

retail counter set up in David Jones.

Analyse data collected from purchases through MODE online store and open up 2 – 3 counter stores within an international

department store (such as Nordstrom’s in the US and

Harrods in the UK) in the most popular sales countries.

MODE Cosmetics

Marketing Mix – Nail PolishNail Polish Product Price Promotion Placement

Objective

To limit sales returns to 2% of the overall sales in an

annual year for Nail Polish’s by the end of 2012.

To set price of MODE Nail Polish 30% higher than

original price from December 2011 to January

2012.

To increase target market awareness of MODE Nail

Polish in Australia from 50% to 75% by January 2012.

To increase the number of product locations by 25% by

June 2012.

StrategyTo change existing

manufacturer to a more reliable source.

To change the price from $22.95 to $29.95.

To liaise with a PR Company to promote and encourage

purchase of the Liquid Foundation by gaining an

editorial in the top 3 Fashion Magazines such as Vogue

and Harper’s Bazaar.

To target the Department chain stores of David Jones

within Australia.

Performance MeasureTo compare actual records

of returned Nail Polish’s from 2011 and 2012.

To cover costs of PR advertising and the change to a more reliable source.

Evaluate the number of people who called up the

number in the various magazines to purchase the nail polish over the phone.

Evaluating the results of a Survey on the online

website, asking viewers where they purchase MODE

Nail Polish.

Less sales but more profit within 3 - 6 months since

introduction.

Corrective ActionTo discontinue the

manufacturing of the Nail Polish.

To set price 10% lower than strategy price of $29.95.

To change the method of increasing awareness to

advertising on Television on channels such as Channel 10

and Fashion TV.

To discontinue distribution of the Nail Polish in David

Jones and increase distribution for the most

popular location based on the survey conducted.

MODE Cosmetics

Sales Forecast 2012

MODE Cosmetics

PRODUCTAVERAGE MONTHLY

QUANTITYAVERAGE SALE PRICE PER

UNIT AVERAGE MONTHLY SALES ANNUAL SALES

Nail Polish 91 $22.9591 x $22.95

$25,061.40= $ 2088.45

Liquid Foundation 61 $45.9561 x $45.95

$33,635.40= $2802.95

TOTAL:       $58,696.80

LESS 10% FOR GST $5,869.68

REVENUE $52,827.12

Annual Budget 2012

MODE Cosmetics

MODE Cosmetics

Conclusion

The Company would be successful applying the Marketing Mix objectives because…

Bibliography

Le Vernis, Chanel, 30/08/2011, http://www.chanel.com/en_US/fragrance-beauty/Makeup-Nails-LE-VERNIS-89314 OPI Nail Polish, Catwalk, 30/08/2011, http://www.catwalk.com.au/o-p-i-nail-lacquer/o-p-i-nail-polish-japanese-rose-garden/w1/i1031932_1031917/ Mac Nail Lacquer, Beautyheaven, 30/08/2011 , http://www.beautyheaven.com.au/hands/nail-care-treatments/25051-mac-nail-lacquer-in-steamy Max-Factor Lasting Performance Liquid Foundation, Beauty heaven, 30/08/2011, http://www.beautyheaven.com.au/make-up/foundation-primer/15877-max-factor-lasting-performance-liquid-foundation Studio Fix Liquid Foundation, Mac Cosmetics, 30/08/2011, http://www.maccosmetics.com.au/product/shaded/158/1231/Studio-Fix-Fluid-SPF-15/index.tmpl Foundation for different skin types, Beauty Advices, 30/08/2011, http://www.beauty-advices.com/a-list-of-the-best-foundations-for-different-skin-types-on-the-market/ Miranda Store, David Jones, 6/09/2011, http://www.davidjones.com.au/stores/Miranda

MODE Cosmetics