Beleza Natural Cosmetics & Skin Care
Final Project in Retail Management
by Hannah Johnson Jasmine McCoy Mona Thelemaque
Table of Contents Concept Statement………………………………………………………….................3 Vision and Mission Statement……………………………………............................5 Shared Values......................................................................................................6 Culture.................................................................................................................7 Customer..............................................................................................................9 Competition........................................................................................................10 Branding............................................................................................................26 Location Fact Sheet...........................................................................................28 Store Décor and Visuals....................................................................................30 The 5 Senses.......................................................................................................40 Plan-o-gram.......................................................................................................42 Annual Sales by Month......................................................................................46 Merchandise Classification Breakdowns...........................................................48 Annex..................................................................................................................49
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Concept Statement Nature of the Business Beleza boutiques specialize in mature women’s cosmetics and skin care products. Altogether, there are 75 free-standing boutiques worldwide - with the US being the biggest market - to ensure sufficient presence in areas important for the business while still maintaining exclusiveness. Additionally, Beleza partners with various luxury resorts, wellness centers and spas where its products are sold as well.
Business Location The boutiques are located in major cities around the world, such as the US, Europe and the BRIC countries. Locations are not only selected by a city’s size, degree of popularity and economic importance, but also according to favorable demographics. Florida, for example, is the US state with the greatest proportion of senior citizens which makes it suitable for our business. One boutique is located in Orchid, Florida, because the city offers a per capita income that is well above $100,000 a year and shows great connectivity to nature which correlates to our core values. Generally spoken, some boutiques will be surrounded by high-end fashion retailers, beauty salons or even nature. Other boutiques will partner with selected luxury resorts, spas, wellness and healthcare centers and will be located inside of them.
Unique Aspects The products will cater to the specific needs of women between the ages of 55-75 – a market
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segment that is highly disregarded up to this point. The products will fulfill their demand for beauty products and contribute to rejuvenate and nurture their skin. The ingredients of the products will be all natural and organic which is guaranteed by having our own laboratories to produce the products. Ingredients include avocado oil for hydration and green tea to provide the skin with antioxidants that fight against skin damages, for example. With our own laboratories on site, we can even offer entirely customized products. There will be dermatologists and cosmetologists on site to consult and educate customers on a personal level. The products will be exclusively sold in our boutiques.
Intended Customer The customers are female and between the ages of 55-75. They are highly engaged into the social and cultural life, are often found at various types of art events, such as vernissages, and they like to travel. They are active, educated and care about their physical appearance. Those women often hold higher positions or were working professionals previous to their retirement and therefore have more discretionary income to spend than the average. Due to their successful profession, the majority of them lives in major cities around the globe. They value quality products and personalized service. They appreciate the organic nature of the product, the expertise of the staff and the exclusiveness of the brand.
Market Penetration Strategies The unique locations will play a key role in reaching our target market. Due to the age range, social media will not play a crucial role of our marketing strategy. The business will mainly be event and knowledge based: Workshops and seminars will be held to educate potential customers about our product assortment and their application. Sampling will accommodate events, such as art gallery openings and theater premiers. The store concept will concentrate on a highly personalized atmosphere and the boutiques will host special events for their returning customer base.
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Vision and Mission Vision Our company will be the premier seller in natural cosmetics and skin care products for mature women. We will employ top talent and turn them into experts in their field to educate our customers and provide them with best-in class service. We strive to be the global authority to empower mature women and equip them with the products they need to feel confident and content within themselves. We will create a community that is the source of inspiration for innovative skin care technology.
Mission We are committed to promote aging as a beautiful process in life that is there for women to enjoy. Our boutiques foster all natural and organic cosmetics and skin care products to cater the needs of mature women in all major cities around the globe as well as exclusive resorts, spas, wellness and health care centers. Our company-owned laboratories are subject to rigid restraints and apply best in class technology. We take pride in investing in the development of our employees to ensure continuous training so they can become and remain the experts in their field. Our business is dedicated to educate and consult our customers about our product assortment and its application.
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Shared Values We are dedicated to the preservation of nature and the environment by strictly offering products with organic and all natural ingredients that come from fair trade. The company stands for expertise, quality and personalized customer service. Our core values are:
Credibility
Transparency
Appreciation
Innovation
Sustainability
Education
Passion
Inclusion
Customization
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Culture Our boutiques are a very educational, professional and fun place to work at. Team work and customer service play a crucial role in our boutiques. We have a trustful relationship with our employees and empower them to solve customer issues independently by providing them with regular training. When in doubt or when facing a critical issue, employees are encouraged to check with their managers for a final decision. Every quarter of the year, employees get to participate in extensive training programs that can last up to a week. Besides gaining confidence and a greater knowledge, employees feel involved and informed about the next steps the company is taking in regards to products and services that are offered. Additionally, those training programs are a great opportunity for them to get to know the rest of the team better. We prefer to promote internal people for available higher positions and we make sure to keep them in the know of new positions that open up within the company. Employees have the opportunity to apply to participate in a mentorship program where they team up with one of their managers, they get to gain insight into the management level and create a career development plan with the respective manager.
Our company truly believes in an open-door policy. Therewith we want to make employees feel comfortable to approach the management with any issues and concerns – personal or work-related – at any time. We make time to listen and work on potential solutions with our employees. If employees prefer to address an issue anonymously they have the chance to do so by submitting a letter into our communication box that is read every week by our operations supervisors. Furthermore, there are monthly meetings to introduce new employees and talk about the business and the goals for the next month. Here, employees have the chance again to give feedback and provide suggestions and proposals for operational procedures. We feel responsible to show each and every employee respect and appreciation for their contribution to our company’s success. This is why we treat them as an integral part of our business.
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Because we are all about creating a high-performing, creative and strong community with our employees, there are various after work events, such as after work dinners, movie nights and sports events, that take place every month. Employees get to come up with ideas and vote for their favorite suggestion. It is important to us to create a welcoming and warm working environment.
Our company is hosting different competitions a year. The employees of the three boutiques with the highest sales over the year get to go on a trip. The destination is voted upon and predetermined at the beginning of the year. Our employees work hard and deserve to feel valued. With every big product launch, employees get free samples to try out the new products and share their personal testimony with customers.
Full-time employees are entitled to 17 days of paid time off a year, to receive benefits, such as health insurance. No employee – if full- or part-time - is scheduled to work on his/her birthday, but is given a paid day off. All employees receive a 40% discount on the company’s products.
Computerized as well as manual systems play a huge role in our work place to simplify and maintain control over operational procedures. However, our services are standardized to ensure consistent quality. However, they are flexible enough to adapt to new situations and challenges in terms of customer service. Our staff is always prepared to handle unexpected incidents. We use top line technology in our laboratory and R&D center to customize products to specific customer needs. Technology is also used to get a better understanding of what our customers wants and to provide better customer service due to improved communication.
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Customer Profile The customer of our store is a mature woman from age 55 to 75. She is either in a leading position or a former working professional that has now retired. She generally lives in a city, gated community, or an upscale home. She is either living alone or with her spouse at this time in her life. Being an international company gives our customer the option to shop with us all over the world so there is not a specific geographic location she lives in. She enjoys the finer things in life like French dining, Impressionism art, and foreign films. Shopping is of great interest to them and they are willing to spend the extra money so that they can get quality products and personalized service. Along with shopping them value getting to travel around the globe. Spending time with family and friends is also an important thing in their life. This woman is well rounded in her life, knows what she likes and wants, and has the discretionary income to spend on high-end makeup and skin care.
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A Day in Her Life The customer of our store is a mature woman named Jan. Jan is sixty years old but she doesn’t let her age define her. She is independent, hard working, and knows what she likes. She is still working at her very successful job as a fashion public relations specialist. Her job allows her to travel frequently and she makes $90,000 a year. Jan lives in a luxurious high-rise building with her husband in Manhattan New York. Jan has two children who also live in New York with their families and she sees them quite frequently. When Jan is not working or seeing her family, she enjoys a variety of other things. She enjoys French dining, Impressionism art, foreign films, travel, and shopping. Jan especially loves to shop as her job is in the fashion industry. She values stylish and classic clothing and personalized service. She is also willing to spend a good amount of money on her clothes as long as they are very good quality. High-end stores like Chanel and stylish boutiques are places she frequently shops. Along with clothing, shoes, accessories, etc., Jan values quality cosmetics and skin care products. As she matures, she wants to make sure she is using the right products to keep her skin looking its best and know the best ways to wear her makeup. She is not looking for someone to sell her products meant for a thirty-year-old woman and then rush her out of the store. Jan enjoys shopping for these products and she wants good service and products to make her experience the most efficient and enjoyable it can be.
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Target Customer The intended target market of our store is primarily female. The skincare and cosmetics are made and designed especially for a mature woman’s skin. This woman is between the ages of 55-75 years old however she does not let her age slow her down in the least. When she is not traveling internationally, she resides in a big city like New York or Paris. If she has not yet retired from her job, she is likely at the top of her field in business or fashion. Whether fashion is a job or not, it is definitely something she loves. Along with fashion, this woman enjoys travel, art, spending time with friends and family, and trying new restaurants. As for entertainment, she enjoys trying the newest restaurants, attending art galleries, seeing current and old films, and definitely shopping. You won’t find this woman shopping at Walmart, staying home all day, eating McDonalds, or not keeping busy in her social life. This mature woman is classy, sophisticated, and ambitious. When she puts on an outfit, these are the words she wants people to think of when they see her. She wants to always project herself in a positive and classic light while still showing that she is a woman of the world and nothing slows her down. This mature woman shops quite frequently. She enjoys clothing and style as well as the experience of shopping itself. She wants to dress her age but still come off as stylish. She will buy classic pieces and mix them with some of the modern trends for mature women. She owns brands like Chanel, Yves Saint Laurent. Valentino, and Burberry. Everything from tops, pants, dresses, blazers, sweaters, shoes, skirts and more – are in her closet. When she does purchase these items, she will go to mostly boutiques and retail stores. Our target customer enjoys a prestigious life and can have her pick of the best stores to shop at. However, this woman chooses to come to our store and buy our products over our competition. She continually comes back because we offer her what our competition does not. She will get the best organic products, personalized service from employees who will never rush her out the door, and on staff dermatologists and estheticians that can give her the knowledge and treatments she desires. Due to the age of our customer, social media is not one of the ways
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that we will focus on to contact her. We will focus more on magazine advertising, mailing lists, and word of mouth. Our goal is to have our store feel very personal to the customer and we feel that this age group will respond more positively to these forms of contact. We will also host demonstration and information seminars that we believe will keep our customers in contact with us because they will want to be updated on the latest information and techniques.
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Customer Questionnaire Age? 55-75
Occupation? Level of job? They are either in women in leading positions or former working professionals that have now retired.
Where do they live? Generally in a city, gated community, or an upscale home. There is not a specific geographic location.
Single or married? Kids? There is a mix of both. Generally, they are married however.
Educational Level? They are educated and have graduated college with at least a bachelor’s degree, if not a masters.
What life-stage are they in? They are either at the height of, nearing the end, or retired from their professional life. They are living either alone or with their spouse.
Favorite movies? They enjoy classic films like Casablanca and Gone with the Wind. However, they also keep up to date with more current cinema and foreign film.
Favorite restaurants? Restaurants that serve unique and creative dishes as well as sushi restaurants and French restaurants. Outstanding customer service is a must. What magazines do they read? They read magazines like Vogue, Time, and Vanity Fair as well as newspapers, such as The Financial Times
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Favorite music? Bands? Music from artists like Frank Sinatra and Dean Martin, also classical and jazz music.
Favorite artists and/or art movement? Expressionism artists like Vincent Van Gogh and Impressionism artists like Claude Monet.
Are they tech-savvy? They are semi-capable with most technology, generally they are not considered “techsavvy”
What other designers do they like? They like any designer that produces classic timeless looks that don’t age them. They frequently buy Chanel, Yves Saint Laurent, and Burberry.
Where do they shop? High-end stores and boutiques.
Shopping attitude? They aim to get the most out of their shopping trips– in terms of quality and the overall experience; they do not want to waste time
What types of vacations do they like? Favorite locations? Getting to sight-see and enjoy a luxurious event are always favorite activities on vacations. They also enjoy being pampered and relaxing. They don’t specifically have a favorite location, more so favorite activities.
What are their political views? They are not especially more Democrat or Republican. However, they are politically informed and not afraid to give their opinion on the issues.
Hobbies? They enjoy travel, shopping, spending time with family, and attending art galleries and exhibition.
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Target Market Segment Our target market is a pretty specific group. Our customer is a mature woman who is educated, upper class, and lives in a major city of the world. See seeks above and beyond service when she shops and is willing to spend a good deal of money for quality products. This woman is independent, hardworking, and fashionable. She enjoys travel, art, spending time with family and friends, and shopping. She is loyal to stores that will provide her with the products and service she desires.
Geographic: *Region: We will have international locations in the United States, Europe, and exotically located spas. Our stores will be in the major cities of their countries. *City Size: 1000,000 + *Urban/Rural: Urban *Climate: The climate will vary depending on the city and country.
Demographics: *Age: 55-75 *Sex: Female *Family Life Cycle: Either living alone or with their spouse. Their children (if they had any) are now out of the home. They have more spending potential at this time in their lives. *Household Size: 1-2 people *Income: $165,000 + *Education: College graduate with a masters or at least bachelors’ degree. A business- and/or fashion related field of study is most likely.
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Occupation: If they are still working, they are professional’s at the top of their field in business or fashion.
Sociocultural: *Culture: American, European *Subculture: -Religion: Any -National Origin: Any -Race: Any *Marital Status: They could be single, married, divorced, or widowed.
Psychographics: *Social Class: Upper class *Personality: Independent, smart, achiever, decisive, fashionable *Life-style: Enjoys the finer things and has worked hard for their prestigious life. They shop at expensive stores and eats at nice restaurants. Also greatly enjoys traveling and spending time with friends and family.
Consumer Behavior: *Benefits Desired: Personalized service with an educated knowledge of the products and services. They greatly desire someone who will give them time and patience while assisting them. *Usage Rate: Frequently shops and enjoys getting the newest and best products. *Brand Loyalty: They are typically very loyal to the high quality and luxurious brands they know and love. *Store Loyalty: While they are open to trying new stores, they still would consider themselves loyal to their favorite stores that they know will provide them with the best service and care. *User Status: Current user
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Life Stages of Target Customer % Of DISPOSABLE INCOME
YOUR STORE
3%
0%
8%
0%
15%
0%
27%
5%
18%
15%
29%
80%
100%
100%
Teenagers – Entering the spending market in a serious way for the first time; limited income, but all disposable. Some act as the shopping agent for food, etc. in the families where the parents are working.
Young Singles (under 30) – Experiencing independence and real income for the first time. Not high earners, but often impulsive spenders.
New Young Couples (20/35) – Meeting the demands of saving/spending for a home, car, and furnishings. Cautious spenders.
Young Families (30/40) – Faced with pressures of home, car and now family upkeep/education costs. Very price/value conscious.
Mid-Life Families – Will experience relief from housing costs and spend more on home, travel and other self-expression activities. More women join the workforce.
Older Families – (Or Empty Nesters) Often at close to peak of earning potential. With mortgages and family costs behind them, they have enormous spending potential. The least affected by the economy.
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Competition Direct Competition Our company’s direct competition is limited. While the cosmetic and skincare industry is quite large, all natural products very specifically catered toward mature women are small. However, research shows that our closest competitions are brands like Lancôme, Dior, and Estee Lauder. These brands sell high-end skin care and cosmetic products. While they don’t specifically aim their products toward mature women, their high prices and certain products definitely cater to parts of that market. O ur company’s competitors have an advantage because they are already established brands that have been in the industry for a long time. They are distributed in major department chains, such as Nordstrom’s and Macy’s. These brands also have a large customer base. However, our store targets a much smaller and highly disregarded age range then most makeup and skincare brands in the industry. We therefore offer products that truly satisfy their needs instead of generic products. Having our own laboratories on site and being able to offer customized products according to our customer skin’s specific needs makes us very competitive because our target generation is usually loyal and has the discretional income to spend.
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Indirect Competition Our company has a great deal of indirect competition. Since our target customer has a relatively high discretionary income, they have a lot of places they will shop at. Stores like Whole Foods, Neiman Marcus, and luxurious spas are places that our customer will also spend their money. They will want to spend their money on quality products in every part of their life. Cross marketing could definitely benefit our company. Partnering with high-end boutiques or resorts could create awareness of our company and bring in more customers. Companies like Whole Foods that sell organic products and Neiman Marcus, which sell very quality high-end products, have many similar qualities that our target market looks for when shopping. Quality and good service are key elements that they desire in their shopping experience and partnering with other companies that offer that could be extremely beneficial to us.
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Industry Overview The industry of cosmetic and skincare products is quite a large one. The skin care industry is a multibillion dollar business, estimated to be worth $43 billion per year. It has steadily grown in the past years, and is expected to grow 6.8% more this year. Europe and the US are the biggest markets of the industry, accounting for over 50% of global skin care sales. Today's cosmetic market place is also a huge global economy worth approximately $40 billion, mostly generated in the western countries but it is ever expanding into other global markets. The cosmetics and skincare industry has developed rather rapidly since these early days of limited products as the quest for beauty has become ever more important. Brands are now represented by key celebrities around the world in a bid to increase the market share of these industries. Even though the cosmetic and skincare industry already have a vast amount of products and brands, in the next two years the industry is likely to continue to expand. More and more companies and products will continue to appear, making competition much more fierce and brand loyalty harder to achieve. In the next two years, the mature women, ages 55-75, will probably become more marketed to. As more and more of the baby boomers start to hit this age group, the need for cosmetic and skincare products specifically designed for them will grow in demand. While it is difficult to predict just how large this specific industry will grow, it will probably stay ignored for long. Overall, in the next two years the cosmetic and skincare industry is likely to become even more powerful. As long as consumers continue to care more and more about their looks and companies continue to appear and develop new products, this industry is going to grow. Despite the vast amount of products and brands, the cosmetic and skin care industry is not saturated in terms of products that serve the needs of our target customer. This market has high demands: Only the most innovative in the industry will succeed; for example, a company that will come up with new, improved and more effective ingredients to slow the process of aging down. There are still a lot of options to be explored in the cosmetics and skin care industry.
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Competitive Analysis Matrix Your Business
Lancôme
Dior
Product/Service
Mature women’s cosmetics and skin care products and services
Women’s cosmetics and skin care products
Women’s cosmetics and skin care products
Price Range
$50 - $1000
$25 - $200
$25 - $500
Quality
Extremely high quality and all natural
Good quality and well liked products
Very good quality
Unique Features
Uses all natural products that cater to a more ignored market that comes with personalized service and care
Offers a wide range of products
Associated with a high end fashion brand
Distribution System
Specialized one on one service
Over the counter service
Over the counter service and one on one service
Advertises in magazines and offers the occasional gift with purchase
Advertises in magazines and television advertisements.
Shopping malls
Shopping malls and other stores
Quality products with a wide range of customers
The name Dior is well known and associated with high quality and fashionable items
Marketing/Advertising
Geographic Location
Strengths
Offers informational and demonstrative seminars and extremely good customer care International – mostly in cities and luxurious vacation resorts Very educated about their customers needs and offers a unique type of product and care that other businesses don’t
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Weaknesses
Target market is limited to a very specific group
Lots of competition with same products
Makeup and skincare products not as popular as its clothing
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Helena Rubinstein Strengths - Cater to highly disregarded market segment - Strong cooperation with L‘Oreal - Well established distribution channels - Well established customer base - Strong markteing campaigns on TV - Production locations feature proximity to proising markets - Lots of experience in running the business - Well known around the world (well communicated brand image)
Opportunities - Increasing demand all over the world - Demographical development triggers higher demand in high-priced quality cosmetics and skin care products (higher proportion of senior citizens) - Reduction of labor costs through outsourcing - Trend to environmental friendly business process (not only green products)
Weaknesses - Comparatively highly priced products - Dependent on raw material prices - Old fashioned brand image
Threats - Technological advancement of competitors - Rising labour costs in Western Europe - Exposure to (fluctuating) exchange rates
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Estee Lauder Strengths - Strong brand reputation that is associated with luxury and quality - Excels in identifying consumer product needs and preferences - Very profitable over the years - Products are sold worldwide (150 countries) - Successful marketing techniques like GWP and artist events - Established industry relationships
Opportunities - Get involved in green business trend and use it as marketing tool - Expand to more international markets - Develop stronger customer loyalty to brand and its products
Weaknesses - Due to relatively high prices and weak economy, target customer group minimizes - Lack of ability to reach other viable markets - Extremely profit oriented (occasionally, prioritizes sales before customers’ needs so they might risk losing customers to a competitor)
Threats - Existing competition becomes stronger - Worsening economy might decrease demand in fast moving consumer due to minimized disposable incomes - New, innovative competitors with a comparatively lower price point or other comparative advantage
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Branding
The name Beleza is Portuguese and means Beauty. Our products aim at making women over the age of 50 feel confident and beautiful in their skin. Our goal is for them to embrace life, no matter their age. Beleza sounds exotic and so are the countries where Portuguese is spoken like Cape Verde and Brazil. Beautiful and exotic is how we want our customers to feel. And therewith, the company’s name also refers to our connectivity to nature and our environmental-friendly business procedures. Every time our customers visit the store and use our products, we want to take them on a journey to an exotic place where they feel revived. The products are a beauty elixir, a source of life. Also, the name evokes curiosity and sticks out because it is different.
Our company’s logo is inspired by a flower – which is why it refers to our connectivity to nature, just like the company’s name does – and its form reminds on an ornament. Due to its curvy form, it represents femininity in our opinion which is why it is a perfect fit for our company.
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Our company decided on Edwardian Script for the font. It reflects the scroll of the logo and blends in with the theme of femininity and beauty. The decorative packaging of our product bottles and flacons will be clear while parts of it, such as the cap, will be in one of the colors inspired by the five elements; water, fire, air, wood and metal. The colors are supposed to link to the natural ingredients of our products. The customer will be able to easily identify the different merchandise categories because each category will be represented by one of the five elements colors. Each of thos colors, namely red, blue white, brown and silver grey, will be in earthy and natural hues. The majority of the store décor and furniture is kept in black and white to provide a luxurious and sophisitcated look and to make the products pop and stand out. This also helps to draw the customer’s full attention to the products. We deliberatly wanted to set ourselves apart from the mainstream “eco look” and also did not want to convey an old-fashioned image even though we cater to an older age group.
Our shopping bag are made out of frosted clear plastic so that the products are visible from outside which might spark the interest of others in the products.
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Location Fact Sheet Address:
15 Purchase Street, Rye NY 10580 (Westchester County)
Intersection:
Purchase Street and Boston Road
Total Square Footage:
1,026 SF
Retail Space Square Footage:
520 SF
Warehouse Space Square Footage:
506 SF
Building Size:
17,000 SF
Space Type:
Street retail
Space Includes:
Private bathroom, high ceilings, heat
Other Space Details:
Landmark building, centrally located
Shape of Space:
Rectangle
Rent/SF/Yr:
$54.00/SF/Yr
Monthly Rent:
$4,617 /Month
Location of Entrance:
Entrance located on the first floor of the store building
Location of Exit:
Exit located in the back of the warehouse space
Location of Windows:
Two large windows located infront of the store
Terms of Lease:
Negotiable
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We chose this location for our store for a variety of reasons. First of all, it was in a great general location. New York is known for its great shops and we thought that our store would fit in perfectly here. This location is in a nice shopping area of New York and surround by other beautiful retail stores. This location is also walking distance to the train station and receives a good amount of foot traffic. According to a 2011 report (within one and three miles of the store) we were able to find some very positive demographics. As of 2011, there is a female population of 39,815 and about 40% of these women are in our targeted age group (3 miles from the store). There is also a very large amount of households in our targeted income range. The average household income was reported at $235,639, which is well over our targeted range (within one mile from the store). Additionally, this retail space and the building are visually very appealing: It features bricks and high ceilings, it is located in an alley with beautiful tall trees and the big windows will create a light-flooded sales area. It offers an elegant feel while still having a unique vintage look. Another big positive aspect of this location is the warehouse space. Since we will have our own laboratory where our products are made, we need extra room for that. The warehouse space could also be used for our demonstration seminars or offices for our on-staff dermatologists. Overall we feel that this is the right location for our store and will help make our business a success.
Even though our boutiques are mainly located in major cities and high-traffic areas, our trading area is several blocks because of our USP which is the creation of customized skin care and cosmetic products on an all natural basis for women between the ages of 55 and 75. Natural, high-quality skin care products might be sold at a department store a couple blocks away from our boutique but our target customer is looking for more than just a product – she is looking for an extraordinary shopping experience that educates her, identifies her specific needs and offers an adequate, one-of-a-kind solution for it.
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Store DĂŠcor and Visuals Store Outside
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Store Inside
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Ceiling
Laboratory Inside
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Couches / Chairs
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Tables
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Shelves/ Fixtures
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Wall Fixtures .
Lighting
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Staff Room
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Restrooms
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The 5 Senses See
Fountain, waterfall fixtures, plants
Staff and experts at work
“Observation Window” to see laboratory staff at work
Clean and organized store presentation
Wide aisles
Warm bright lights
Hear
Water from the fountain and waterfall fixtures
Counseling conversations
Low, relaxing instrumental music
Feel
Relaxing, spa-like atmosphere
Plants
Customers feel appreciated and cared for due to personalized shopping experience
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Wooden, smooth, leather surfaces of furniture
There are testers for all our products so customers can try and feel them
Quality
Smell
Plants and flowers that are in the store
Fresh, clean smell
Citrus/lemon that is in the complimentary water
Smell the product testers
Taste
Complimentary water
Raw fruit and vegetables
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Plan-o-gram Our boutique features a linked retail and warehouse space which is ideal for its purpose: The warehouse space in the back houses restrooms, the employees’ break room, the management office and conference room, as well as the inventory, laboratory and R&D and the treatment center. The restrooms are available to use for employees and customers and are located towards the back on the left. Therewith they do not interfere with the overall appearance and atmosphere of the store and the customer has to walk past many of our products to get there. On the way, customers might get inspired to make a purchase. It is important that the inventory space is easily accessible from the sales floor area, so that sufficient products supply is ensured. The laboratory and R&D center take up the biggest space as it is a central part of our business. It features an “observatory window” that allows customers to gain insight into how our laboratory technicians work. This feature links to one of our core values which is transparency. Our treatment center is located on the right side towards the back of the store. This is the perfect spot because it is aside the sales floor and offers a great space to relax. It hosts six individual treatments rooms. Directly in front of the treatment center, there is an inviting seating area with couches and light refreshments.
Upon entering the store, the customer is greeted by a huge fountain that is located in the center of the retail space. It represents purity and naturalness - a link to our product ingredients. This theme continues at the walls on each side of the retail space which feature waterfall fixtures that reach all the way to the ceiling. Therefore, no additional wall decoration, such as pictures, is needed. Dermatologists and other staff members conduct demonstrations in front of the fountain providing customers with important information about our products’ effects and application. This is a great way to get the potential
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customer engaged and interested in purchasing a particular product. The entire front are is meant to attract curious pedestrians and to animate them to come into the store.
All around the fountain are shelves that are of medium height so that the products on the higher shelves on the wall and in the back are still visible for the customers and can catch their attention. The aisles are wide so people can easily pass through the store even in times of high traffic. Since we cater to elderly people, we might occasionally have customers in wheel chairs or with walkers so more space is needed. The register is located centrally on the left wall of the retail space. It is therefore quickly and easily accessible but does not interfere with the beautiful dĂŠcor of the store.
There are four round, rotating glass show cases located on each side of the entrance area as well as towards the back, that feature the most current product launches in skin care (#1). Impulse towers are located at the cash warp to stimulate last minute purchases (#5). Generally, our products are sorted by merchandise classification. Since the packaging of each merchandise class has a different color that is inspired by on of the five elements, this arrangement will create a clear and neat overall appearance of the store. It will also help the customers to quickly identify the product category they are shopping for and orient themselves in the store. In the center around the fountain, our skin care products are located because it is the product category that makes up the highest percentage of our profits (#2). While skin care for the body is located further in the back, skin care for the face is located further to the front because it is our best-selling subcategory. The packaging for this product category is inspired by the element earth and has therefore a lot of green elements. Our make-up products can be found all along the right wall because it is the second largest product category. (#3) Customers pass this area on their way to the treatment center and therefore it is a high traffic area in our store. The better selling products in make-up, such as our foundations and lipsticks, are located closer towards the front than the rest of the products of this category. There are round glass showcases that display the most current product launches in make-up (#9). They are meant to drive traffic into that area. The packaging for this product
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category is inspired by the element wood and therefore features earthy brown elements. Fragrances are located towards the left of the store (#4). On the left wall, there are even three separate glass towers that separately display the three subcategories, body mists, body sprays and perfumes. The packaging for this product category is inspired by the element water and therefore has blue elements. The left back corner of the store hosts special offers and products that are about to be discontinued at a discount (#6). On the way to the promotional products, the customer might get inspired to purchase a regular priced item. The fixtures in the center back of the store display accessories, the product category with the lowest share in profits (#7). Because the packaging for this product category is inspired by the element metal, the packaging is mainly silver grey. The fixtures with the accessories are located close to the seating area where people often wait for someone to return from their treatment. This might stimulate impulse purchases and is also a popular destination for customers shopping for gifts. Despite its remote location, the treatment center attracts attention due to red signage and decorative elements, as inspired by the fifth element fire. Therefore, the treatment center can be easily located.
The P on the plan-o-gram stands for plants and is just to demonstrate that lots of plants and flowers will decorate our retail space. The glass showcase that is located close to the seating area (#10) displays our best-selling fragrances because this is the only merchandise class that is otherwise not visible from this corner.
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Annual Sales by Month Unlike a lot of other merchandise for sale, cosmetics and skin care products don’t have a very drastic change in sales from one month to the next. Cosmetics and skin care products aren’t something you buy in the same regularity that you would buy clothing. For example, you might be out shopping and decide to get a sweater. You may have six sweaters already, but that didn’t stop you from buying this seventh sweater. As for skin care and cosmetics, it wouldn’t make sense to purchase a new moisturizing lotion when you have one already. There is no need for two moisturizing lotions. While some products you may buy several of, like eye shadows and lipsticks, overall you won’t shop for these products in the same regularity you would a lot of other things. Our store’s sales are still impacted by factors like changing seasons, holidays, and shifting trends like other stores. However, our sales just aren’t raised or lowered as much. For example, during the Christmas season people will purchase skincare and cosmetic products as gifts, there is just a smaller amount of people who will do this. It is not as common to purchase mascara or skin cream as a holiday gift, hence not as much of a change in sales percentage. The months that were slightly higher for our store were due to holidays like Christmas and Valentine’s Day and increased spring shopping and fall shopping due to changing colors people like to wear and the specific products they need for the weather.
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Monthly Sales Distribution 16.00% 14.00% 7.20% 8.30% 7.50%
12.00%
Percentage
10.00%
7.90% 8.30% 7.90% 7.50%
8.00%
8.20% 7.80% 8.30% 8.90% 12.20%
6.00% 4.00% 2.00% 0.00% Jan.
Feb.
March
April
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
Months
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Merchandise Classification Breakdowns Altogether, there are five main product categories that feature multiple subcategories. As mentioned previously, each merchandise class is represented by a color inspired by the five elements.
Skin Care 45% 

Face 30% -
Facial Cleanser 3%
-
Moisturizer 3%
-
Toner 2%
-
Masks 3.5%
-
Day cream (anti-wrinkle, dark spot, face lift cream) 6%
-
Night cream (ultra moisturizing, revitalizing, regenerating, nourishing cream) 6%
-
Lip Balm 2.5%
-
Sunscreen 4%
Body 15% -
Hand Lotion 3.5%
-
Body Lotion 3%
-
Body Cream 2.5%
-
Body Butter 2%
-
Sunscreen 4%
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Make Up 20%
Foundation 5%
Eye Shadow 2%
Mascara 2%
Eye Liner 1%
Blush/Powder 4%
Lipstick 4%
Nail Polish 2%
Treatments 20%
Facial 10%
Facial, Neck, Decollete, Hands 6%
Facial with Evening Make Up 4%
Fragrances 10%
Body Sprays 2.5%
Body Mist 2.5%
Perfumes (EdP, EdT) 5%
Accessories 5%
Scrub Brushes 0.3%
Brushes 0.3%
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Make Up Bags 0.8%
Tweezers 0.3%
Hair Brushes 0.3%
Hair Ties 0.3%
Towels 1%
Robes 1.5%
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