Table of Contents.
Executive Summary
2
Company Summary
4
Competitive Analysis
10
Market Analysis
18
Store Location
34
Store Design
44
Product Plan
54
Promotional Plan
58
Financial Plan
68
Conclusion
74
Work Cited
76
Executive Summary.
Students from the Undergraduate Retail Management course - FASM 410 , Grace Rokela, Camila Yerovi, Karina Tong and Ashley Himpel developed the following pop-up shop for the beauty brand Glossier. The goal of this project is to successfully open a Glossier pop up shop through a joint venture with an Australian partner in the city of Melbourne, Australia. Based upon this goal, the key objectives would be to have an average monthly foot traffic of 4,000, with an average basket of 102, and finally by the month of December have around $63,000 worth of sales. Australia is an attractive market for beauty brands due to the growing amount of economic opportunities. Australia offers a growing opportunity for Glossier because the forecast period performance of beauty and personal care is expected to be driven by innovation, with new products to feature breakthrough claims, multi-functionality and new delivery formats. Glossier’s pop up shop will be located in the Chadstone Shopping centre in Melbourne, Australia. The Glossier team realizes that the Australian consumer is interested in natural beauty products and active on social media. Australia is the perfect place for international expansion, providing the glossier aussie girl with products she can now reach. This pop up shop will last for three months, starting October 1st, 2017 and ending December 24, 2017. This pop up shop will be Glossier’s first international expansion. Through the use of social media marketing, and exclusive product the pop-up shop should be successful for Glossier and earn profit.
* All costing in the following book is under Australian dollars
2
Company Summary.
4
Mission and Vision.
“We’re laying the foundation for a beauty movement that celebrates real girls, in real life. Glossier is a new way of thinking about (and shopping for) beauty products. Because ‘beauty’ should be fun, easy, imperfect, and personal.”
“We think of our skincare like makeup, designing our products to work together to immediately bring out your best.”
History.
Glossier was founded by CEO Emily Weiss in 2013. Emily Weiss graduated from NYC with a degree in studio art. During her time at college, Weiss took a three-day-a-week internship at Teen Vogue for three years, working across departments and finding a mentor in Jane Keltner de Valle, the magazine's fashion news director at the time. Emily Weiss later on got inspired to start a blog, known as Into the Gloss. This is a blog where you can find interviews of “IT” girls, getting the insider view of what beauty products and skincare products they kept in their beauty cabinet. The main inspiration for Into the Gloss is for the regular women who want to know more about these women who were so cool and interesting for all these different reasons, and what beauty routine works for them. In 2013, Into the Gloss started to become strategic and raised 2 million in their first round of funding. In 2014, she used the funding to create what is now “Glossier”; then received 8 million in the second round of funding. Weiss said she and her team started with "hard-hitting universal products" designed to be "the backbone" of a woman's beauty routine.
Business Structure.
Emily Weiss
Rebecca Zhou
Sara Zucker
Henry Davis
CEO, Founder
Digital Manager
Senior Social Media
Chief Operations
Manager
Office
Alexis Page
Umaima Sharwani
Claire Knebl
Eunice Lee
Director of Product
Digital Manager
Managing Editor
Development and
Development
Advertising Brand
Plans for Growth.
By the end of 2016, Glossier had a 600% sales growth, and expects to continue to increase their statistics. Aside of this, Glossier plans to invest around $24 million in 2017 to support their plans for growth by expanding their services and products through international shipping. Glossier also plans to expand their product offerings; they will provide their customers items such as perfumes, sunscreen, nail polish, and hair products.
Competitive Analysis.
10
SWOT Analysis. STRENGTHS. strong brand identity cohesive products, message and marketing product assorment (minimal 1% return rate)
WEAKNESSES. ability to fulfill demand (distribution channel is not enough) instant gratification (online and only one brick-andmortar store) customer wants product faster
international growth (shipping outside of the US)
millenials (change interests quickly)
expanding product assortment (age-based, perfume, eye-shadow, nail polish)
instagram competition (offer similar products, price point, and more incentives)
OPPORTUNITIES.
THREATS.
Identity Matrix.
Clean, simple aesthethic Soothing tones Feminine -
“BFF treatment Persona lReliable Receptive -
Physique.
Personality.
Relationship.
Genuine Down to earth Social butterfly -
Reflection.
- Youthful - Hip - Lively
Culture.
Self Image.
- American lifestyle - Sisterhood - ‘Health is beauty’
- Health conscious - Practical - Trendy
Price
Market Positioning.
Accessibility
Current Distribution.
Glossier
currently
has
one
brick-and-mortar
store located in New York, USA. Before opening their current store, the company only sold its products online, shipping to 50 states and Puerto Rico. Aside from this, Glossier operates with a direct to consumer model, a B-C business.
Communication and Promotion. Communication and promotion is something quite important for a company since it is through these channels that they gain audience and customers. Glossier is a brand that is heavily active on social media. They have accounts on Instagram, Facebook, Twitter, Youtube, and Snapchat. Their most successful social media channel is Instagram; it is through this account that Glossier targets young adults, more specificially, millenials. They have consistency on all of their channels, posting lifestyle images, as well as own product shots. Glossier makes sure they post 1 to 2 times every day, engaging their customers. Aside from these social media channels, Glossier also has a personal blog called ‘Into the Gloss.’ It offers readers advice and information about beauty products. Its blog also offers interviews from models, makeup artists, and day-to-day women. Beauty advices in the areas of hair, skin, nails, makeup, health, eyes, lips, and scent; and other information about beauty products for readers around the world. With these methods of communication and promotion, Glossier makes sure to stay on track with their customer’s needs.
Instagram 469.1K
Twitter 30.3 K
Facebook 98,660 likes
Youtube 55,551 subscribers
Snapchat
‘Into the Gloss’
Market Analysis.
18
Australia.
Before considering Australia as the final option for Glossier’s pop-up shop, New Zealand and South Africa were considered too. Fortunetly, Glossier realized how amazing of an opportunity Australia would be gor Glossier. Australia has experienced a significant growth in their economy, driven by constant new product innovations and the demand for niche and premium beauty and personal care brands, this is fueled by Australian consumers interests in health and well being. Along with this social media has a strong influence in beauty and personal care, especially for the younger demographic, which is perfect for Glossier’s target market. Australia runs on the same fashion calendar as New Zealand, and South Africa, by testing the market in Australia, this could lead to pop-up expansions in these connected countries. Overall, Australia provides the perfect opening for American beauty brand, Glossier.
State of the Industry Beauty and personal care in Australia witnessed moderate growth in 2015, with the strongest-performing categories being sun care, skincare and colour cosmetics. Premium beauty has been supported by the arrival of Sephora in 2014, with the beauty specialist retailer now operating three stores in the country. Dominating players include Procter & Gamble Australia Pty Ltd, L’OrÊal Australia Pty Ltd, Unilever Australia Ltd and Colgate-Palmolive Pty Ltd, which benefit from having strong portfolios of well-established brands and economies of scale. Social media has a strong influence on beauty and personal care in Australia, with consumers, particularly from the younger generation, increasingly living their lives online. They have a passionate drive for a healthy lifestyle they want to maintain and achieve. Value sales have been driven by constant new product innovations and the demand for niche and premium beauty and personal care brands, which are seen as aspirational and highly effective. The forecast period performance of beauty and personal care is expected to be driven by innovation, with new products to feature breakthrough claims, multi-functionality and new delivery formats.
PESTLE. POLITICAL.
The Australian government maintains active and diverse
international trade policy agendas, where they combine regional and bilateral strategies to break down world barriers to trade. Trade policies are equally based on structural economic reforms, in order to improve international trade. Aside of this, the government has an open door policy, which always motivates various international business to invest their resource for the benefits of the Australian consumer; this allows the country to maintain a good inter-country relationship with countries.
ECONOMICAL.
Australia’s property prices are generally high in
relation to income levels, creating a great demand for rental properties. The country has strong economic growth rates, which are higher than in most OECD countries including the USA and UK. Australia’s GDP is high and there is a low degree of risk in the economy due to its stable interest rates, rising exchange rates, high levels of employment and low rate of inflation at 1.5%.
SOCIAL.
Australia has a population of 23.7 million people, and it is expected
to exceed 30 million by 2030. three main social classes– working class, middle class, and upper class. The wealthiest 5 to 10% are usually regarded as upper class, with their wealth derived from ownership and control of property and capital. The growning middle class is defined as individuals with non-manual occupations. In the main cities, unemployment is relatively low and on average the national unemployment figures stand at around 5%, with a minimum wage of $17.70/ hr. Majority of the population falls between 25 to 54 age gap.
TECHNOLOGICAL.
Australia is among the top 10 spenders in the
world for research and development. The government funds around 55% of all reseach and analysis. The current value of intellectual property in Austrlia is over $30 million, which defends those properties that are notably within the WTO. The countries domestic networks consist of fiber-optic, wireless, and satellite.
LEGAL.
Australia
introduced
an
age
discrimination
and
disability
discrimination legislation as well as an increase to the minimum wage an greater requirements for firms to recycle. All of these are examples of relatively recent laws that affect an organization’s actions. Australia also maintains United Nations Security Council and bilateral sanctions in respect of a number of countries; includes export and import restrictions, training and financing. Besides of this, Australia has a no-tariff partnership with the United States.
ENVIRONMENTAL.
Austrialia is a large island continent and is one of
the most biologically diverse countries in the world, with a large portion of plants, animals, and ecosystems found nowhere else. There seems to be a growing desire to protect the environment due to global warming, ocean dumping, and oil spills. Australia is moving towards more environmentally friendly products and processes, which is also affecting demand patterns and creating business opportunities.
Market Size. Australia has experienced moderate beauty and personal care growth since 2015, with the strongest-performing categories being sun care, skincare and color cosmetics. This push came from the opening of Sephora in 2014, widening Austrailia’s beauty market to more premium beauty brands. The rise of Australian beauty products have been influenced by social media. Specifically promoting health and well being which is the Glossier market. Glossier’s target market is 18-32, and 90 percent of this demographic is on social media. Due to social media, and the constant product innovation and demand for niche beauty brands, Australias Beauty market is ready for the advancement of beauty products from Glossier.
Entry Mode. Australia’s culture relationships and social interactions allow Glossier to use a joint venture as the mode of entry for the pop-up store. Glossier is a small business, therefore it is important to take into consideration how difficult it would be to enter a new market without the help of an Australian partner. By doing so, it will allow Glossier to enter the market faster and start gaining recognition from locals as well as tourists. Having a joint venture with an Australian partner has its benefits. By reaching out to professionals from the area, there will be valuable knowledge and experience with the Australian consumer. There will also be access to national subsidies, loans, and tax deductibles if applicable. And finally, there will be a lower economic risk for Glossier. Glossier’s success through the joint venture will heavily rely on establishing a type of inter-cultural trust between the American brand and the Australian customer. Understanding and accepting of the partner’s culture is also key for this pop-up shop to be a success. Finally, identifying clear business goals, rights, and responsibilities for the entire process of the pop-up store will also be important.
Key Players.
Aesop is an Australian skin, body, hair care, and fragrance brand owned by Natura. It was founded in 1987 in the city of Melbourne, by Dennis Paphitis along with Suzanne Santos. They investigate widely to source plant-based and laboratorymade ingredients, and therefore only use those with a proven record of safety and efficacy. The company produces 83 product formulations. It has over 100 stores across Australia, New Zealand, Canada, Japan, Singapore, Malaysia, South Korea, USA, Italy, France, Germany, Switzerland, Taiwan, Hong Kong, Sweden, Norway, and the UK. The brand has its own signature spaces, can be found in department stores across Australia and the USA, and online. Aesop has never opened a pop-up store.
Becca is a highly curated selection of cosmetics that enhance your natural beauty rather than covering it up. It’s products match the skin tone, and therefore create perfect looking skin while at the same time highlighting one’s favorite features. The company is the #1 creator of the world’s best-selling luminizer, Shimmering Skin Perfector™ Pressed. Becca opened in 2001 by Rebecca Morrice Williams, and later became part of the Estée Lauder Company. The company is sold through third-party retailers all over the world, and e-commerce. Becca has never opened a pop-up store.
Elf is a beauty brand composed of bath and skin-care products, mineral-based makeup, professional tools, lipstick, glosses, blushes, and bronzers. It was founded in New York City, in June of 2004 by Joseph Shamah and Scott Vincent Borba. Elf is a brand that has products which are 100% “cruelty-free,” and supports PETA’s no fur campaign. Aside of this, Elf has a personal blog, where readers can find from beauty and skin-care tips, to makeup trend ideas. Elf currently has 19 stores in the USA, found in New York, New Jersey, and California; they also have an e-commerce platform. The brand can too be found in third-party retailers such as Target, and Ulta Beauty. Elf has opened one pop-up shop, which took place in NYC.
Indirect Competitors. Founded by Malcom Rands in New Zealand in 1993. The brand is all about using sustainable and organic practices to create non-toxic and healthier products for their everyday customers. Their products range from skincare, hand & body wash, hair, and baby, to dish and laundry products. They have brick-and-mortar stores as well as online.
Mecca is a high service beauty boutique supported by a curation of the world’s most luxe beauty brands, 100 to be specific. It opened 17 years ago, and since then, their main goal has been to bring every customer a new dimension of personalised and expert advise.
Coast to Coast was founded by Nicole and her husband, right after they discovered a variety of native plans, rich in natural potency. Their goal is to give customer honest skincare made from a complex balance of Australian organic ingredients. They offer skincare, bath & body, and hair products.
Demographics & Psychographics.
Melbourne is a major and relatively young city with a growing population of 4.5 million people. It is home to residents from 180 countries, who speak over 233 languages. Residency ranges from middle class to high class. Over the years, there has been subtantial international investment in the city’s industries and property market. 64.4% o people living in Melbourne over the age of 15 , identify as being in the labour force as full-time employees, and 22.5% identify as part-time employees. Value healthy products and are willing to pay more for them. Social media is impacting consumer behaviour, with consumers frequently sharing their product experiences. Australians have an increase interest in quality products.
Alexa Smith.
√ 20 yrs old √ Originally from Melbourne but constantly flying to New York to visit family √ Psychology student at the University of Melbourne √ Amateur writer with interest in journalism and photography √ Financially dependent on her parents for the most part √ Biking is her main form of transportation √ Very engaged in social media, specifically Instagram √ Works at The Gap in Chadstone Mall √ Practical yet trendy style, while favoring comfort √ Not interested in luxury brands √ Recently gained interest in skincare and beauty products
Ava Jones.
√ 27 yrs old √ Originally from New Zealand √ Moved to Australia after college to work for a Melbourne-based graphic design agency √ Annual income of AU$ 60K √ Enjoys a fast-paced lifestyle while being constantly on the go √ Vegetarian √ Facebook and Instagram are her most frequented social media platforms √ Interested in current events and international news √ Fashion and beauty conscious, although prefers physical stores over online shopping √ Sophisticated and minimalistic style √ Invested in make-up and skincare since a young age √ Go-to face products include sunblock, moisterizer, and tinted lip balm
Alice Williams.
√ 35 yrs old √ Originally from South Africa but moved to Melbourne after college √ Kindergarten teacher √ Currently married to an architect √ Mother of one √ Annual household income is of AUD $130K √ Lives in a 3-bedroom apartment (owned, not rented) √ Family goes on vacation twice every year √ Yoga and marathon enthusiast √ Tech savvy √ Popular blogger, writes about family life, fitness, product recommendations, and style.
Store Location.
34
Location Justification. Since Glossier targets a younger demographic, Melbourne is the city that will give the company the biggest opportunity to expand and do so, all through their vast amount of universities found there. The Chadstone shopping mall is the perfect location for Glossier because it is a destination for both tourists and locals. It is known as the best shopping mall in Australia, and “The Fashion Capital�. Chadstone is the home of over 500 stores, and accommodates 20 million customers each year, allowing Glossier to
open
its
doors
to
Australian
customers.
Area Lifestyle.
Melbourne is Victoria’s capital and the business administrative, cultural and recreational hub of the state. The entire area has a population of around 4.5 million people and is continuing to grow. The city of Melbourne is a friendly and fascinating city for shopping opportunities, eclectic nightlife, a mix of restaurants and a variety of entertainment venues. It’s renowned for its style and elegance, with a passion for eating, creative arts, sports and festivals. Melbourne isknown as Australia’s shopping and fashion capital that thrives off independent design markets, small boutiques and large retailers. Getting around Melbourne is easy with a network of trams, trains, bus services, and taxis that run frequently from morning to night, making it easier to get around. With Melbourne being a large college down, the lifestyle is more laid back and has a lot of energy that will welcome and captivate you. The city is known for being very culturally diverse and benefits from more than 230 different nationalities which is a reflection of the spirit of its people. For the most part, Melbourne is a highly active city and take pride in living a healthy lifestyle. When people aren’t working, they enjoy their leisurely time working out, participating in yoga, cross fit and dance. The active and healthy inclination of the city comes from a positive shift towards social and environmental awareness. The green consumption is becoming a strong factor within the fashion environment and product development process. Beauty and wellness are also key leading trends in the area, as millennials have a significant valorization for organic products and social responsibility related to brands they buy.
Sales Potential. The Chadstone Shopping Center has a special place in the hearts of Melbournians and is now a destination for shoppers all over the world. It is a memorable experience as beautiful, landscaped gardens welcome you as you arrive. There are 10,000 car parking lots, which is the highest number of parking lots of any shopping center in Australia. With over 500 stores, Chadestone is truly made for each and every one of its 20 million customers per year. Mass transit services include Uber, taxi, bus routes, and cars. Buses arrive and depart from Chadstone all day, every day, with over 900 buses per week, coming from 11 suburban bus routes. The total leasable area is 1600 sq. feet, providing a welcoming and inviting space for customers to look around and experience the environment comfortably. Our store is located in between Chanel and Omega on the ground level of the Chadstone mall, which is ideal because this floor has several other health, beauty, and fashion stores located here. Opening the pop up shop in the summer when there is the most tourists and foot traffic coming into the city. Also, with Melbourne having 8 universities nearby, it gives students the opportunity to work at the pop up shop who are passionate about a career in the fashion and beauty industry. The location we have chosen is the top shopping destination in Melbourne, receiving 17.6 million people a year, including locals and tourists. It is a stable location to operate a pop-up shop because it presents a high amount of sales potential. In October, Glossier expects to accumulate a footraffic of 3,000 people, 3075 in November, and finally 6075 in December.
Area Attractions/ Competition. Melbourne is the coastal capital of the southeastern Australian state of Victoria.The city’s centre contains modern Federation Square development, with plazas, bars, and restaurants by the Yarra River. Glossier’s pop-up location. the Chadstone shopping mall is the home of over 30 restaurants, and a state of the art Cinema complex. Not only is Chadstone home to some of Australia’s renowned but it has become the ‘experience’ capital. Located near Chadstone are three universities, Deakin, Monash and Swinburne, attracting a younger demographic. Within three miles of Chadstone are the LEGOLAND Discovery Centre,Warrawee Park Oval, Brickmakers Park, Australia Tourist Guide - Day Tours, Koh Feel Well Being, XploreVic Tours - Day Tours and the Holiday Calm Spa. These are all attractions that are targeted to tourists. Near Glossier’s popup are beauty brands, Aesop, Australian Skin clinic, David jones, Beauty science, Bailey Nelson, Chemist warehouse, Chanel beauty, Dior beauty, Essential beauty, Kiehls, L’occitane, Lush, Mecca cosmetics, My chemist, Sephora and The body shop.
Human Resources.
STORE MANAGER
ASSITANT BRANCH MANAGER
NY VISUAL MERCHANDISER
SALES ASSOCIATES (3) AUS VISUAL MERCHANDISER
CUSTOMER SERVICE
The main tasks required to be performed for this pop up shop include managing personnel, sales associates, and inventory. The Glossier team will need to participate on working with customers with their beauty and skin care questions, assisting them to try on the products, and giving them feedback about which products best correlate with their skin tone. Glossier will also need associates to complete the sales, and take care of any product returns with the help of in store iPads. The Glossier team has designed a recruitment plan for its pop up shop in Melbourne, Australia for opening positions. These will include one store manager, one in store assistant branch manager, one visual merchandiser, three sales associates, and one customer service associate. Glossier will be flying out one of their best visual merchandisers from New York to stay for one month and will train the visual merchandiser in Australia. In-house training will include partnering up, participating in group workshops, and cross-training for all employees prior to the pop-up shop opening. Glossier will utilize recruiting services in Australia such as online sources. This will include job sites like SEEK, Gumtree, MyCareer, Jobsdb, and Simply Hired.
The team will also use a recruiting agency and accept job applications from interested personnel. Glossier is planning to compensate their local recruit employees working as sales associates, managers, visual merchandisers and a customer service associate in Australia. Full time associates are required to work eight hours a day from Tuesday to Sunday starting from 10-6 pm, (48 hour week) with a monthly salary of $5000 AUS, along with a customer service associate. The full time store manager will receive a monthly salary of $5200 AUS and the assistant branch manager will receive a salary of $5000 AUS to stay for the duration of the popup shop. The visual merchandiser from New York will get a monthly salary of $5,000 AUS, along with the Australian visual merchandiser.
Legalities. In terms of regulations and legalities of Glossier, the pop-up shop will accept CRM Austrilian dollar payments, more specificially credit and debit cards, cash, as well as Apple Pay. Aside from this, Glossier will carry iPad’s to process customers purchases. Glossier will be located in Chadstone Mall. The hours of operations of the mall depend on the weekdays, so from Monday to Wednesday it opens from 9:00 a.m to 5:30 p.m. while the rest of the week days, the mall is open at a later time. Glossier will be open during those hours of operations, extending them on the weekends. Aside from this, the mall will provide security, such as camera’s outside of the pop-up shop as well as guards. Australia’s trade regulations include the FTA with the United States as well as the WTO. There are not tariffs from United States imported products, making it easier for Glossier to enter the Australian market. In terms of health and safety, Australia has Fair Work Act/ Comission , the national workplace relations tribunal, with initiatives in which will improve fairness, accountability, and timeless in the resolution of workplace disputes. Melbourne has an specific health and safety regulation called WorkSafe Victoria, a mission to actively work with the community to deliver outstanding workplace safety and return to work, with insurance protection. Glossier will also apply a workplace inspection done every month, to make sure the pop-up shop is working perfectly and no rules have been broken.
Store Design.
44
For our Glossier pop-up within the Chadstone Shopping center, we have picked this location because of the proximity to direct and indirect competition and it is a tourist and student attraction. Our location within the Chadstone shopping center is 1600 square feet. This location is larger than the average pop-up size, but provides the space to offer more product and experience, considering the demand will be high. The store stays true to Glossier’s visual aesthetic, which is overall instagrammable, clean and minimalistic. The store windows will have hanging glossier ad posters, along with a pedestal with product on it. Inside the store, there are fun sayings on the walls, mirrors and space to try on products. There is a sitting area, creating a very comfortable and home like feel. On the left side of the store, there are three “makeup” stations where customers can sit down and a Glossier employee can help them try on the product. The product will be displayed on the long bubble table, and also on the six pedestals, in a very clean, non cluttered way. In the back of this space, there is a bathroom, and a mirror with the words “you look good”, encouraging customers to selfie and post to social media. In the store, towards the back is shelving to display product and a sink, with the face masks displayed, so customers can experience the product. Sales will take place on iPads. Glossier has specific packaging, so at the end of the long bubble table on the right, there is an extension, with drawers to hold cash and packaging. The Chadstone shopping mall has an included security system in every store, preventing theft. Along with a security system, there are sprinklers in each space, preventing fires. .
Special thanks to senior Interior Design student Luke McLindon for making our pop-up shop come to life Luke@mclindons.com
Store Fixtures. fixtures
units
price
mirrors
6
$2,010.31
glass cases
6
$536.79
pedestals
6
$1,454.89
table
1
$10,735.85
stools
7
$1,814.36
lighting
8
$4,073.72
shelves
11
$1,154.10
sofa/ couch
3
$2,683.96
decoration
7
$3,000.00
plant
1
$93.93
sink
1
$319.39
cabinets
4
$716.61
total
70
$28,593.91
Product Plan.
54
Products Offered.
MASK DUO
MILK JELLY CLEANSER
SOOTHING FACE MIST
Mega Greens Galaxy,
One kind ($18)
One kind ($35)
SUPER PACK
PRIMING MOISTURIZER RICH
INVISIBLE SHIELD
Super Glow, Super Bounce,
One kind ($47)
Sunscreen, one kind ($46)
Moisturizing Moon Mask ($54 total, $30 each)
Super Pure ($86 total, $38 each)
HALOSCOPE
STRETCH CONCEALER
PERFECTING SKIN TINT
Moonstone, Quartz, Topaz
Light, Medium, Dark, Deep,
Light, Medium, Dark, Deep,
($30)
Rich ($24)
Rich ($35)
CLOUD PAINT
FLAVORED BALM DOTCOMS
BOY BROW
Dusk, Puff, Bean, Haze
Rose, Cherry, Coconut, Mint
Blonde, Black, Brown, Clear
($24)
($54 total)
($21)
Glossier Lip Gloss
GENERATION G
one kind ($19)
G-Zip, Leo, Jam, Crush, Like, Cake ($24)
Promotional Plan.
58
Promotional Chart. PRE-LAUNCH SEPTEMBER
facebook INSTAGRAM YOUTUBE SNAPCHAT TWITTER PRINT BLOGGERS
LAUNCH OCTOBER
POST-LAUNCH NOVEMBER
DECEMBER
Glossier’s pop-up shop promotional plan is spread out throughout a 4-month time period. Glossier runs on a shorter promotional schedule for product launches and brand updates because social media is their main marketing platform. Based on research, Glossier focuses on the digital media marketing platforms such as Instagram, Twitter, Youtube, Facebook and Snapchat. Australia currently has 85% of their population as internet users. As of January, 2017, 69 percent of Australians are active on social media. Glossier’s target market 18-32, and 90 percent of this demographic is on social media. Part of those 69 percent of Australians are 5 million daily Instagram users, 2.8 million monthly Twitter users, 14.8 million monthly Youtube users, 16 million monthly Facebook users and 4 million daily Snapchat users. Because of these statistics we will use Instagram, Twitter, Youtube, Facebook and Snapchat to promote Glossier’s pop-up shop in Australia. Prior to this promotional plan, Glossier will search the internet and all social media for the best beauty bloggers, Glossier fans and Celebrities in Australia. Products will be sent to these people in exchange for video and photo content, expressing their
reviews,
During filter of
these in
the
gaining four
months
Melbourne. pop-up
hype
shop,
from pre
Because this
will
their
launch, people be
a
followers,
spreading
there
will
won’t
know
successful
be
a
awareness.
Glossier
the way
the
specific to
gain
snapchat location attention.
Throughout this promotional plan, images from the current Glossier website, Instagram, All product campaigns will be used on every platform. A new hashtag will be used for this pop-up, #GlossierAus, to be able to view customer reviews, and search images for content to be reposted on social media networks.
Australia currently has 14.8 million Youtube users monthly. Glossier will reach these Australian customers by creating a new tab on the Glossier Youtube channel. This tab will be labeled “Glossier Pop-up AUS� and will feature product application videos, pop-up shop hints, eventually revealing the specific location and opening of this pop-up shop. This tab will also repost different Australian Beauty Bloggers Glossier product reviews Glossier currently uses twitter to connect all social media. Information about the pop-up, product shots, pop-up location hints, etc will be posted on twitter. Glossier
will
posting
about
Glossier
fans
be
launching
location, an
a
product,
exclusive
look
linked
exclusivity at
products,
etc.
page,
@GlossierAU
Providing
therefore,
Australian
creating
hype.
There will be 3 bus stops with a Glossier beauty poster on them. These bus stops will be picked based on location, including proximity to universities, and in trendy millennial spots. These three bus stops with Glossier advertising on them will be spread out, not near each other. This form of advertising is used by Glossier in New York City, NY , and has proven to be very successful.
Promotional Mockups.
Snapchat Geofilter.
Instagram Mockup.
Financial Plan.
68
Income Statement. october
november
december
total
net sales
$45,900.00
$78,412.50
$216,877.50
$341,190.00
cost of goods
$13,770.00
$23,523.75
$65,063.25
$102,357.00
gross margin
$32,130.00
$54,888.75
$151,814.25
$238,833.00
expenses design of space
$78,000.00
$78,000.00
wages
$20,200.00
$20,200.00
$20,200.00
$60,600.00
rent & utilities
$4,000.00
$4,000.00
$4,200.00
$12,200.00
logistics
$1,200.00
$1,200.00
$1,600.00
$4,000.00
janitorial
$400.00
$400.00
$400.00
$1,200.00
promotional activities
$3,150.00
$2,000.00
$3,150.00
$8,300.00
accomodation & flight
$4,900.00
$3,600.00
$3,600.00
$8,500.00
total expenses
$172,800.00
total PROFIT
$63,000.00
Average Product/ Unit. Average Product Price. average price
aus$
skincare
$32.77
makeup
$26.24
Average # of Units Sold Per Month.
total
october
november
december
AVR. UNIT
AVR. UNIT
AVR. UNIT
840
1,436
3,971
700
1,195
3,306
1540
2,631
7,277
Traffic & Sales Potential. october
november
december
footfall
3000
3075
6075
conv %
0.15
0.25
0.35
$102.00
$102.00
$102.00
tot. rev
tot. rev
tot. rev
$45,900.00
$78,412.50
$216,877.50
$341,190.00
$13,770.00
$23,523.75
$65,063.50
$102,357.00
avr basket
MKUP 70%
cost of goods sold
product
percentage
october
november
december
Skincare
60%
$27,540.00
$47,047.50
$130,0126.50
MAKEUP
40%
$18,360.00
$31,365
$86,751.00
TOTAL
100%
Average Basket. alexa milk jelly cleanser
$24.00
priming moisturizer rich
$47.00
avg. basket
$71.00
ava invisible shiled spf
$47.00
boy brow
$22.00
cloud paint
$24.00
generation g
$24.00
avg. basket
$117.00
alice mask duo
$54.00
super bounce
$38.00
face mist
$24.00
avg. basket
$116.00
total avg. basket
$101.33
Conclusion.
After extensive market research, Melbourne, Australia is the perfect location for Glossier’s pop-up shop. By opening a pop-up shop in Chadstone Mall during the months of October, November and December, Glossier will be able to target a younger demographic, who is active on social media and focused on the latest health and beauty trends. Glossier will open its pop-up shop through a joint venture with an Australian partner. Glossier’s success through the joint venture will heavily rely on establishing a type of inter-cultural trust between the American brand and the Australian customer. Adapting to Australia’s constant drive for new product
innovations and the demand for niche and premium beauty and personal care brands, Glossier will be able to add a new dimension to their beauty brand. Using the momentum of Australia’s current market, Glossier will open their first international experience. This pop-up shop will not only deliver product that is only currently available in the USA, but generate revenue, creating an opportunity to expand to New Zealand and/or South Africa, with possibilities of permanent Glossier stores.
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Workscited. â&#x20AC;&#x153;About health and safety representatives and consultationâ&#x20AC;? - HSRs Worksafe. N.p., n.d. Web. 27 May 2017.r "Aesop." Home page. N.p., n.d. Web. 27 May 2017. Avins, Jenni. "Glossier is building a multimillion-dollar millennial makeup empire with Slack, Instagram, and selfies." Quartz. Quartz, 01 Dec. 2016. Web. 27 May 2017. "Australia-United States FTA." Department of Foreign Affairs and Trade. N.p., 16 Nov. 2016. Web. 27 May 2017. Chadstone Leasing. N.p., n.d. Web. 27 May 2017. <http://vicinity.com.au/media/567903/ chadstone-shopping-centre-leasing-fact-sheet-september-2016.pdf>. "Discover the Best Selection of Beauty Products | MECCA." Discover the Best Selection of Beauty Products | MECCA. N.p., n.d. Web. 27 May 2017. "Ecostore Skin care products and Cleaning Supplies." Ecostore - Skincare Products and Cleaning Supplies New Zealand : ecostore US. N.p., n.d. Web. 27 May 2017. "Glossier." A Beauty Brand Inspired by Real Life. N.p., n.d. Web. 27 May 2017. "Home - Chadstone." Home - Chadstone. N.p., n.d. Web. 27 May 2017. "Home." Buy Makeup Products Online | Priceline. N.p., n.d. Web. 27 May 2017. "Key Facts." Shopping Centre Council of Australia. N.p., n.d. Web. 27 May 2017. Lawyers, HCA. "Guide to Australian Labor Laws | WorkCover Lawyers Near Melbourne VIC." Henry Carus Associates Injury Lawyers. N.p., 09 Nov. 2016. Web. 27 May 2017. LP, SeaRates. "Find the best Freight Quote." SeaRates. N.p., n.d. Web. 27 May 2017. "Official Store | Home Page." BECCA Cosmetics. N.p., n.d. Web. 27 May 2017. "Premium Makeup and Beauty Products." E.L.F. Cosmetics. N.p., n.d. Web. 27 May 2017. "Trade and investment." Department of Foreign Affairs and Trade. N.p., 07 Oct. 2014. Web. 27 May 2017.
"Alcon Lighting Luna 12213 Opal Glass Globe Hanging LED Luna Pendant Light." Alcon Lighting. N.p., n.d. Web. 28 May 2017. "Infinity 36" round wall mirror." CB2. N.p., n.d. Web. 28 May 2017. "Cookware, Cooking Utensils, Kitchen Decor & Gourmet Foods | Williams Sonoma." Cookware, Cooking Utensils, Kitchen Decor & Gourmet Foods | Williams Sonoma. N.p., n.d. Web. 28 May 2017. "Search result - IKEA." IKEA.com â&#x20AC;&#x201C; International homepage â&#x20AC;&#x201C; IKEA. N.p., n.d. Web. 28 May 2017. "Furniture, Home Decor and Wedding Registry | Crate and Barrel." Crate&Barrel. N.p., n.d. Web. 28 May 2017. Lori W, Catherine B, Jim G, Richard S, and Ann M. Pedestal Source. N.p., 05 May 2017. Web. 28 May 2017. "Home depot." Home depot. N.p., n.d. Web. 28 May 2017.
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Grace Rokela. Camila Yerovi. Karina Tong. Ashley Himpel. FASM 410.