CWK4 Budget & marketing Fashion marketing & communication Alexandra Dahlgren, Jessica Fredlund, Freja Lina Nyman, Emelina Nyqvist
• • • •
Data collection • Survey Conclusions • Marketing plan • Consumer target
Index.
Positioning and differentiation Main competition Marketing mix
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Product, price, place, promotion Develop a 3 year budget
The concept is to take a product that has existed for a long time, however introduce it in a new and contemporary way; meaning nail polish being available for sales in a fresh and young packaging, through vending machines.
Introduction.
2012: Spanish nail care market grew by 10% Total valued 96 million euros Nail polishes grew by 10%, value: 54€ million Highest growth was remover/treatment (+12.7%) valued 18€ million* Spain accounts for 12% of the income in the EU beauty market*
“The lipstick effect” = “Feel-good factor” Trends and new products on the market
Nail polish market. *http://www.cosmeticsbusiness.com/market_reports/article_page/ECM_Hands_and_Nails_2012_ *2http://www.spainbusiness.com/icex/cma/contentTypes/common/records/mostrarDocumento/?doc=4520895
Less than 5% of new vending companies fails each month -comparing to 65% independent small businesses startups*
+ Low number of employees No retail space Little maintenance Technological advancements Â
Vending machine market. *http://www.vendingconnection.com/consider.html
How much are you maximum willing to pay for a regular nail polish?!
Is nail polish normally an impulse purchase for you? ! Yes
The price is not relevant to me 8%
20 € 8%
5 € 15%
No
9 € 34%
14 € 35%
16%
Do you usually buy nail polish? ! 84%
No 8%
Yes, but seldom 56%
Survey.
Yes, every other week 16%
Yes, Once a month 20%
80% of the total numbers of girls answered that they are interested in buying nail polish in vending machines “Its perfect for me when I’m heading to a party and don’t have painted nails” “If the stores are closed and I forgot to buy a new one” “Always forget to paint them, so great”
Insights.
Core target 15-19 years-old Lives at home Low/non income Spontaneous shopper Quantity over quality Demographic group: 30,983
(Secondary target) 20-29 years-old Lives at home/first apartment Low/first income Spontaneous shopper Visually appealing packaging Demographic group: 98,917
Target profiles.
Positioning maps.
Kiko Price: €3.90 Size: 11 ml Founded 1997 Own stores + online 500+ POS
Mavala Price: €4 Size: 5 ml (small) 100+ colours Season trend Social media
H&M Price: €4 Size: 9 ml Impulse purchases 20 colours Simple packaging
Migi nail art pens Price: €2.3 Size: 8 ml 40+ colours patented tip Low price
Competitors.
• • • • • •
Nail polish pen Vending machine easy to buy, fast to buy “use it on-the go” fast dry 50 trendy bright colors
Product.
• • • •
Retail price: 4€ Remover: 1€ Combined purchase: 5€ Coins makes it easy to by “on-the-go”
• Commercial Centers + metro stations • Barcelona • Wide reach
Price/Place.
• Launch event in Diagonal during one day in order to promote the nail polish vending machines • Six professional manicurists in the commercial center next to the nail polish vending machine showing various trends • 200 first costumers one free nail polish pen • Flyers with information about product + website and social • Social media contests and brand engagement 95,6 % of the Spanish population ages 16-24 years old have used the Internet during the last month*
Promotion. *www.ine.es
• Suggested target 15-29 years old: 129.900 = 8% habitants in Barcelona • Metro stations can reach 1.2 million every day • 7 229 persons passing through each station every day (166 stations)* • Target/metro station: 578 • Total target/metro stations: 2312 people/day • Diagonal mar: 42.466 visitors/day (target 3397) • El triangle: 24.000 visitors/day (target 1920) • Total: 7629
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Budget *http://www.tmb.cat/en/suports-publicitaris
All machines: • January estimated purchases: 2% among traffic target • 153 purchases/target/each day • Higher sales in January (launch) • Lower sales in February/March
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Year 1
Year 2: Continue with the same structure as year 1 +0,2 % Lower sales in January (no hype as during the launch)
Year 3: Launch 2 more machines in metro stations Increase of 0,1%
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Year 2-3
• This budget and marketing plan includes the entire process behind the planning of a new concept and product, which we predicted to be a possible success on the Spanish market • We met the demands of the target chosen and corresponded it to develop a product fitting with those needs • 3-year budget, the product has a strong plan base with actual possibility of success
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Conclusion
Thank you!