Clarity by Erin Kelly

CLARITY

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company overview market analysis customer profiles location product assor tment room designs marketing deliverables social media marketing proposed budget

company overview

Company Overview Company Bio

Birchbox was founded by two Harvard alumni, Hayley Barna and Katie Beauchamp, whom both have an interest in the digital and beauty world. The company was started in 2010 and based in New York City, NY. The highly populated company offers online beauty products as a subscription retailing service. The company provides makeup, hair, skincare, and fragrance products. Additionally, it may offer other lifestyle items like tools, gadgets and games. The company has developed over time to branch itself out to target the under-served male demographic, as well. This is when the company created Birchbox Man that offered various products including shaving, cologne, jewelry pieces, and so on. Birchbox has grown immensely in the short period of time since it was first founded. Now, the company has more than 200 brands from which they sell their products monthly or online. It has become one of Birchbox’s strength to keep a strong relationship with it’s vendors. Birchbox has acquired more than 800,000 loyal subscribers to this day and has become over a $60 million company.

Competition

As a subscription service company, Birchbox was the pioneer behind the innovative idea. However since then, there are several other companies that have picked up this idea and followed steadily behind Birchbox. There are two main subscription service companies that have similar business plans to Birchbox. GLOSSYBOX is an online e-commerce business that offers beauty sample subscriptions at a higher rate than Birchbox and it’s other competitors because it offers full-sized products instead of sample sizes. They plot themselves at a higher price point due to their luxury items. The other competitor is Ipsy, which was founded by a beauty expert, is another sample subscription service company. It is priced the same as Birchbox, $10 a month, but offers a GlamBag as a keepsake for the customer. They are also only domestically located in the United States, unlike Birchbox and GLOSSYBOX that have a global presence. The advantage that Birchbox has over its competitors is that it is more developed-already establishing a Brick & Mortar store along with its online e-commerce store. It has reached a broader target market as well since it launched Birchbox Man.

Industry Analysis

The beauty industry has had a spark since the revolution of subscription based retailing. Birchbox was the first of many companies to introduce this new marketing plan of “try and buy”. The company is not the only beauty service business either, since the startup many other businesses like Sephora, Target, Ipsy, and GLOSSYBOX, have taken note of the growing market for the subscription services. Even other industries have noticed the growth, like pet grooming, DIY crafts, jewelry, and the food industry. However, Birchbox has been the most profitable and successful in utilizing the marketing tactic. They have already partnered with other known companies like GAP to expand their target market and demographic.

market analysis

Market Analysis Demographics

The Birchbox customer demographic is heavily female dominated with a low, but growing male ratio. Currently, the customer segment is roughly split at 85% females and 15% males. However, since the location of our Pop-Up shop will be held in San Francisco, California, the demographic changes a bit. It is estimated that the city area is roughly split between 50.4% females and 49.6% males. Therefore, giving us an advantage over the female market with it being more heavily populated. We plan on targeting females and males ages 17 to 35 years old. We believe it is most dense between the age groups of 20-30 year olds. Since our marketing campaign uses technology and e-commerce as a direct channel, this age group can connect more easily than the other ages. We plan on targeting younger adults who are in need of new organic skincare products that target problem areas on the face.

Psychographics

San Francisco is a city with a mix of very different lifestyle views. The population of people describe themselves as free, green, and very open-minded. Therefore, we believe it is the right location for our Pop-Up shop. The city has a young demographic with new professionals who invest in new technologies and new startup businesses. However, there is also the mix of people who attend farmerâ&#x20AC;&#x2122;s markets and eat and use only organic products, they seek new products to try all the time. Our marketing campaign fills the need for our customers, a clean and organically made skincare line for younger adults who are digitally interested as well.

Customer Shopping Behaviors

Since women have more options than men, they need more time to browse. Also, since the Birchbox customer is very educated being part of the Millennial generation they like to research the company extensively and browse the products online before they make the purchase. The customer needs marketing tactics to be influenced to purchase the item. Birchbox has been converting women who were passive beauty shoppers into active, passionate beauty shoppers. It has been said that the majority of the consumers are too busy to go shopping for beauty products, or that are too embarrassed/afraid to browse the makeup counters. They want to try new, emerging brands, therefore prefer the sample size products. About 50% of consumers go on to buy the full size products after receiving their box and trying out the products. Male shoppers are more predictable and consistent when compared to women shoppers. They shop sooner and more often. 5

customer profiles

Jeremy Age: 25 years old Subscribed to Birchbox Man. Invests in nice skincare and grooming products, very tech-savvy, and lives in the Financial District of San Francisco.

Eleanor & Elena Age: 19 years old Both newly subscribed to Birchbox. Love trying out new beauty products, collecting plants for their apartment, and are addicted to their iPhones. Both were born and raised in the San Francisco Bay area.

location analysis

Location Our pop-up shop will be set in San Francisco, California. We believe Birchbox already has an established market on the East Coast, therefore moving out West could be an opportunistic adventure. We chose San Francisco due to it’s nice climate, demographic mix, and a large beauty consumer base. “Clarity” pop-up shop will be located at The Fairmont Hotel’s rooftop. An outdoor area was key for our brand since it is an organic, green product. We wanted to create an experience for the consumers attending our event. Below you will find a vicinity map of all the closest beauty/skincare competition around our location area. The area is already pretty dense with competition, however most of the retail stores are located in overly crowded streets and not enough open space like our venue.

product assortment

CLARITY â&#x20AC;&#x153;Clarityâ&#x20AC;? is an organic skincare line developed to help problematic areas for young adults. To make the skincare line attractable to both genders the packaging is kept at a simple, clean, neutral aesthetic. The product line consists of a morning wash, night wash, facial mask, emergency spot fix, and moisturizing lotion. By using all the products it is intended to give your face more clarity.

room designs

Inspiration Board

Indoor View

Outdoor View

Aerial View

Final Renders

marketing deliverables

Outdoor Signage Piece

E-mail Newsletter

Digital MarketingAdditions to App

social media marketing

Facebook & Instagram Page

Snapchat GeoTag Location

proposed budget

Financial Plan

August

Expenses Building/Real Estate Leased Rooftop Garden (14 days)

Advertising and Promotional Expenses Advertising (Social Media) Signage Printing Employee Salary Employees ($12/hr)

October

November

December

January

$35,000.00

Capital Equipment List (Pop-Up shop) Furniture Equipment (Recycling Station) Incentives Food/Drinks Opening Inventory Products Boxes

September

Total

TOTAL:

$35,000.00 $35,000.00

TOTAL:

$200.00 $100.00 $650.00 $500.00 $1,450.00

$200.00 $100.00 $650.00 $500.00

$1,000.00 $800.00

$1,000.00 $6,000.00 $800.00 $4,800.00 TOTAL: $10,800.00

$50.00 $200.00 $200.00

$50.00 $200.00 $200.00 TOTAL:

$5,000.00

$5,000.00 TOTAL:

$300.00 $1,200.00 $1,200.00

$2,700.00 $30,000.00

$30,000.00

FASM 410-Retail Management Chelsea Bald win Erin Kelly K ayla Willis Annette Zuozo