AURARUM - marketing plan

2nd Semester Report // Marketing Management Eva Cao Thi, Aneta Junková, Louisa Peine, Sina Marleen Petersen, Dénes Sasvári

INDEX 3 4 6 6 7 7 8 8 8 8 8 9 9 9 10 10 10 11

Executive Summary Business Model Canvas Marketing Analysis Market analysis/PEST Generic strategy Company analysis/SWOT marketing program Vision statement Mission statement Positioning Unique selling points marketing mix & ACTION PLAN Marketing mix Marketing goals Marketing budget Sales forecast Finacial risk control and evaluation of performance Appendix

Aurarum® 2015

EXECUTIVE SUMMARY Our brand is the only company offering cosmetic products for active women, which enhance their beauty and nurse their skin.

As part of the tertiary sector 35% of the cosmetic market is covered by skincare products. Within the consumer good sector AURARUM® enters the personal product industry as a Private Corporation/ S Corporation/ Limited Liability Company. Considering the Danish consumer product industry according to euromonitor.com (19th May 2015) a clear trend shaping the value sales growth is the search for emerging niche brands. As the article published in May 2015 states “a major theme in new product launches was new functionality” of multi-benefit products. Yet market research has not revealed a clear picture on the availability of such products with both benefits in care for aging skin as well as beauty-enhancing abilities. Focusing to provide a skincare solution for elderly women at the age of 60+ that additionally offers the benefits of Make-Up and therefore the convenience of a reduction of products, our campaign promotes nourishing skincare with the beauty-enhancing benefits of Make-Up. The long-lasting products are tailored to be suitable for all skin types and combine several functions. With its light-weight packaging it is suitable for a busy lifestyle, easy packed and convenient in use. Putting special emphasis on the Value Proposition, that the beauty of aging skin deserves to be looked after, the business mainly thrives through outstanding customer service and consultation facilities to fulfil their overall objective to aim for a loyal trusting customer base.

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Aurarum® 2015

BUSINESS MODEL CANVAS CANVAS RIGHT HANDSIDE The right hand side of the Business Model Canvas shows the interaction with the targeted audience. It includes all aspects that are visible to the outside and represents the value for our customers & users. Concluding it represents what the customers are willing to pay for and how the delivery proceeds.

CUSTOMERS SEGMENTS Customers of Aurarum is not saturated yet. Elderly women at the age of 60+ are increasingly aware of their appearance while putting great emphasis on natural ingredients of their products. Young in mind and with a youthful spirit, our target audience is aware of their appearance and value quality products in order to achieve a natural effect. Our target group is more knowledgeable and aware of false promises. With an understanding of sourcing, active ingredients and effects, they seek out innovation to not only take care of impurity and get rid of dryness but also enhance the beauty of their skin. Additionally their lifestyle requires outstanding convenience in function, use and applicability to save time.

Providing a long-lasting product, costumers can be sure about the products protective factors. Additionally, customers shall enjoy the customer service and outstanding consultancy to find the right product for their skin type and lifestyle and to be provided with after-sales help in the same time.

VALUE PROPOSITIONS AURARUM’s products are designed to enhance the beauty of aging skin. The added value for our target group lies in assurance of top quality ingredients throughout a transparent and sustainable value chain.

Furthermore AURARUM provides benefits of make-up as the added-value to our collection of skincare products to diminish the effects of using multiple products simultaneously. AURARUM provides age appropriate personal service; in-store assistance, online purchase options as well as available phone order shall provide an option for everyone. Nevertheless, a distinct and meaningful value will be created for customers by providing professional cosmetic consultation.

Additionally we provide results and test information in order to ensure consistent and reliable quality.

Value Propositions will be explained in more detail in ‘Unique Selling Points’.

is tremendous, our goal is focus on the elderly audience using traditional channels while reach out to prospective customers through more interactive channels. Luckily, trend research has shown that digital media is beginning increasingly used by our target group and therefore will be used on a comparably high level.

All products will be available in retail stores as well as in the AURARUM® online store. With a focus on personal contact AURARUM® shall be represented by well-educated and trained staff to build a trustworthy relationship with customers and create a pleasant atmosphere.

CUSTOMER RELATIONSHIP With high emphasis on after sales services the brand shall provide a reliable and consistent consultation. Customers will be guided along the purchase process and will be given the opportunity for customized consultation also regarding their dermatological needs. A professional relationship with their personal cosmetics consultant shall improve the best possible selection of products and facilitates a straightforward repurchase or order of additional products. Moreover, the experience of personal purchase with their consultant creates a welcoming feeling and a sense of being taken care of. Furthermore, the process implies a respectful interaction in order to establish a reliable and long-lasting customer relationship. To further grow the base of customers, the brand shall facilitate an exchange of experiences between customers and build a community around the product.

REVENUES STREAMS Aurarum‘s revenue streams come from the traditional asset sale, providing the customers with the full ownership of a physical, in our case cosmetic product. The sale will be carried out in the retail market (B2B) and online (B2C and B2B). The recurring revenues shall be generated from physical as well as online retail stores and its success highly depends on a profitable customer segment.

The fixed pricing mechanism makes a big difference in terms of revenue generation. With a high emphasis on the Value Propositions (VP) the Fixed Menu Pricing is Product feature dependent. Therefore it highly depends on the number and quality of the before mentioned Value Proposition features.

CHANNELS The channels used to reach our audience and raise awareness while communicating our unique Value Proposition, placed significant importance on the customer experience. The challenge of choosing the appropriate channels

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Aurarum® 2015

CANVAS LEFT HANDSIDE While the right hand side of the Business Model Canvas represents all interactions and visible aspects, the left hand side makes the whole performance possible. It includes all actions and people, who are not visible to the customers. All activities performed here are cost driving and need to be at least evened out by the revenue – if not exceeded.

KEY RESOURCES Key Resources for Aurarum include physical, intellectual, humanitarian or capital resources. In order to produce the cosmetic product, the business requires renting buildings providing manufacturing facilities such as laboratories, packaging systems warehouse space and storage.

Furthermore, the enterprise is in need of office premises to house all departments to run the business. In order to distribute the finished product it requires a distribution network including retail stores, shelf space in physical stores as well as digital availability, and an elaborated logistic infrastructure. As for human resources the enterprise demands highly educated staff within production and sales to provide premium products and service such as dermatologists and make-up artists to fulfil our value proposition. From a financial perspective all activities and costs are intended to be covered by the businesses revenue streams. To initiate the enterprise, it is necessary to establish a credit in the company’s name.

KEY ACTIVITIES The Key Activities can be divided into the development tasks and marketing efforts. While we focus on sustainable sourcing and production, we further ensure quality testing along the production process. Prior market research of customer requirements shall be aligned with the latest knowledge from medical research and insights.

We provide in-depth understanding of our objectives and outstanding production procedure so that customers understand that sustainability and their well-being is at heart of Aurarum’s business. Apart from development and production, a special attention will be paid to active advertising. New customers shall be reached by customized direct mail as well as samples to attract new customers in the introduction phase. Along with direct mail advertising, magazine adverts and citylights are going to support building a brand awareness. Parallel to advertising efforts product will be offered and market in all major retail and department stores as well as online retail platforms.

suppliers will ensure a sustainable sourcing of product ingredients. Along the supply chain, retailers stocking our product will function as ambassadors and consultants for all our clients. For Promotion we will have partnerships with Make-Up artists located in selected retail stores or freelancers who will be equipped with our product and relevant information.

COST STRUCTURE Aurarum is a value-driven company, therefore the costs mainly comes from product development and production.

Fixed costs include expenses for raw material, manufacturing facilities, rent, salaries, logistics such as distribution, R&D and marketing expenditures. Moreover, additional variable costs consist of irregular quality testing, employment of freelancers and advertisement. Costs of marketing and advertising especially in the introduction phase will take up a big part of initial costs. Furthermore, raw material that is sourced from suppliers with a sustainable approach is especially costly. The niche market orientation and the economy of scope will allow sourcing different products from the same supplier and getting prices down. In addition to fixed and variable costs, environmental costs such as the carbon footprint caused by sourcing of ingredients shall be lower than competitor‘s. A sound business model and value-adding activities shall be taken into action in order to lower environmental costs.

like “ Just flowers,

women are created to give beauty to the world.

“

KEY PArtnERSHIPS To reduce the uncertainty of our customers all formulas will be undergoing quality testing, therefore independent laboratories are our key partners who provide a credible source of research and testing results. In order to optimize the allocation of resources reliable network of

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Aurarum® 2015

MARKETING ANALYSIS Market analysis AURARUM sells a Day Crème, which moisturizes and nourishes the skin and provides protective SPF for daily skincare. Furthermore, it combines caring characteristics with a slight tint and the benefits of make-up to enhance its users´ beauty in a natural way.

Marketing Audit - PEST AURARUM is placed in the cosmetic industry. The PEST analysis analyzes the industry in political, economic, social and technological dimensions.

The cosmetic industry can be broken down into the five categories hair care, facial skin care, fragrance, make-up and personal care. Aurarum combines two of those categories by offering Day crème that provides make-up benefits (The_beauty_company). This industry is heavily watched by organizations to protect the consumers´ health. Especially using organic and natural ingredients, there are many regulations and laws to follow set by governments and organizations such as the World Health Organization etc.

Geographically, the cosmetic industry can be segmented into North America, Europe, Asia-Pacific and the Rest of the World (ROW) (Markets_Markets) In 2014, the cosmetic industry in Europe had a volume of 69 billion euro and in the U.S 47 billion euro. Worldwide the segment skincare made up 35,3 percent of the whole industry, the category make-up reached 16,6 percent.

(Statista).

In general, cosmetic products are sold in retail stores and over online retailing. Examples for retailers are supermarkets, pharmacy & drug stores, department stores, direct selling and beauty salons (Markets_Markets). As an important characteristic of the cosmetic distribution, customers seek for easy accessibility and availability.

The demographic development indicates that the population of middle aged and elders is constantly growing and especially in relation with the growth of younger generation. This shift relates in steadily declining birth rates over the last 20 years and the fact that a generation of the baby boomers is reaching the retirement age. The target group of Aurarum is therefore making up a huge part of the population today and it is even said to increase in the next years. (European_Demographic, Photobucket).

Segmentation & Targeting The female generation 60+ makes up the market segment that offers the best opportunities for Aurarum. To segment further we differentiate between women with a vital lifestyle comparing to a calm, inactive ones and women who are willing to spend more on cosmetics and appreciate premium products in contrast to discounted, or offer-seeking shoppers.

Aurarum chooses to target the Danish cosmetic industry at first. In 2014, the wholesale of perfume and cosmetic

made up a volume of 2200 million DKK. (Statistic_Banka) The target group consists of the elderly females who brim over with vitality, care about her beauty, lead a healthy, content lifestyle and appreciate good quality.

Competitive Analysis Aurarum is confronted with many competitors in the cosmetic industry.

The biggest competitors are Olaz, the L´Oréal Group, Nivea, Avon, Esteé Lauder and Dove. (The_Beauty_Comp) The price position Aurarum´s products next to the Biotherm line of the L´Oréal Group. Dove, Nivea and Olaz offer their products for a cheaper price, targeting the same segment. Estee Lauder places its products with a much higher price and they can be seen as a competitor in terms of resembling an elegant, classy lifestyle.

The BB cream of Olaz can be seen as one of the main competitor. A Point of Parity between Olaz and Aurarum is the fact that their cream also comes with the benefits of make-up.

Nevertheless, there are as well Points of Differences that set Aurarum apart from its competitors. Aurarum´s product line offers relief from using an array of many products as it provides a multi-benefit solution for Danish women at their advanced age. Natural and organic ingredients and an excellent moisture management assure long lasting stay and differentiate Aurarum from Olaz or L´Oréal. Putting a lot emphasis on sustainability and social responsibility Aurarum sells its products at a medium price level and still provide a premium feeling for its customers.

Trends As many other industries as well the cosmetic industry is dominated by several trends.

A growing overall trend is “going natural and organic”.

The majority of customers care about natural and organic ingredients which cannot cause any potential harm to their skin (USA_Today_News).

Besides, sustainability plays a major role in cosmetics.

Consumers are more aware of the enviromental impact on the earth and ethical issues like animal testing. Being transparent and sustainable is becoming much more compulsory and can function as a huge competitive advantage nowadays.

Staying active, healthy and fit is also an emerging trend.

Staying in motion, stretching and engaging in sports makes up an important factor in the elder generation´s life.

Considering the product and demographic trends, Aurarum meets the characteristics to become a well -established brand in the cosmetic industry and its DNA matches to the newest trends in the cosmetic industry.

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Aurarum速 2015

GENERIC STRATEGY AURARUM速 follows the generic strategy of focus, which focuses its effort on the choice of a narrow competitive scope within the cosmetics industry. Having selected the segment of Danish women at the age of 60+ the products are tailored for their aged skin, yet provide beauty-enhancing benefits on top of its nourishing qualities. Consequently AURARUM速 shall pursue a differentiation strategy in a narrow part of the market. Thus, they can differentiate themselves within the targeted segment, whose buyers have unusual needs because of their newly gained quality of life at a higher age.

SWOT analysis

STRENGTHS Targeting a niche market: active Danish women at advanced age 60+ Serving unique needs: Combination of skincare and make-up benefits Providing an all-in-one solution Sweat resistancy Enviromental friendly Sustainability promise: Natural ingredients Recyclable packaging Focus on excellence in customer service: Emphasis on the customer Building brand loyalty

OPPORTUNITIES Due to advanced medical solutions, people live longer They stay healthy They are more active European seniors have more money to spend on themselves Potential growth in western Europe, women at advanced aged are not targeted much, especially not with a focus on a active lifestyle Sustainability trend More conscious consumers

WEAKNESSES Challenge to stand out if only targeting advanced age Limited brand awareness No retail appearance so far No brand resonance so far Costly product development Costly service offer

THREAtS Saturated market: market for cosmetics is flooded with new products Competition: High availability of substitutes from traditional cosmetic brand (BB Cream)

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Aurarum® 2015

MARKETING PROGRAM VISION STATEMENT

UNIQUE SELLING POINTS(USP)

Power, Flexibility and Performance Abilities are sources for lifelong vitality. To lead an active lifestyle no matter which age, it is crucial to look after oneself in order to enjoy every day. AURARUM cares. We are not only a premium cosmetic brand that combines make-up benefits with balancing moistures management but also strive to enhance a woman’s beauty and nurse her skin. Yet that’s not all. We sincerely believe that true happiness brings out the beauty and energy from within.

We aim to provide skincare for all active women at their advanced age and on a daily basis comfort them to feel beautiful. Using natural resources and organic ingredients AURARUM provides a trustworthy solution for daily use and a product line of combineable products for profound care and enjoyable results.

AURARUM®’s product line provides a selection of cosmetic products designed to enhance the beauty of aging skin. The competitive edge is provided by added benefits of Make-Up to our collection of skincare products, which reliefs the concern of using multiple products. A long-lasting function power as well the outstanding resistance to sweat and low environmental impact make it especially suitable for active lifestyles. While providing protection, all products from our debut line contain SPF and moisturizing features that suit different skin types and its individual requirements. All high end products are compatible and jointly applicable.

The value propositions according to the different Customer Segments provide age appropriate personal service.

In store assistance, online purchase options as well as available phone order shall offer an option for everyone. Nevertheless a distinct and meaningful value will be created for customers by providing professional cosmetic consultation. Available through different channels, providing customers with the correct product for their needs and wants.

The customer shall find an added value in a promise of sustainability. This shall include the evident declaration and explanation of ingredient sources, production processes and packing materials. Overall Aurarum ensures a sustainable and transparent supply chain so that all natural ingredients can be tracked down to their origin and places of sourcing. Additionally, we provide results and test information from independent laboratories in order to ensure consistent and reliable quality. Further cooperation with dermatologists shall provide to us the latest results of research and knowledge about trends on the market.

In addition to our CSR promise, we provide a cosmetic product that is convenient in use. The light-weight and space saving packaging offers additional value to our target audience’s lifestyle as it is easy to carry and therefore offers the option to reapply.

To summerise, we strive to provide a package of cosmetic products and a trustworthy service experience in the same time: Organic and natural, yet fashionable and classy Simple and easy to use Good moisture management for everyday life Skincare with make-up benefits

MISSION STATEMENT AURARUM cosmetic offers natural skincare and combines its effects with the benefits of make-up to enhance women’s natural beauty. Using natural resources as ingredients, AURARUM cosmetics provides a solution for every skin type and fits all types of lifestyle. Providing convenient packaging solutions women can enjoy skincare whenever and wherever it is needed. They are able to calm themselves and relief their skin from environmental impact. Thus women at 60+ can fully enjoy life and feel comfortable in their own skin.

POSITIONING “You can blossom out in every age” – Premium cosmetic brand for older, yet confident and active women.

Aurarum positions itself in the consumers mind as a vital and feminine cosmetic brand and states that beauty is ageless. No matter how old you are physically, the mind and appearance can stay young and love life. Aurarum supports the consumers´ vitality, gives inner strength and supports a fabulous look during an active day.

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Aurarum® 2015

MARKETING MIX & ACTION PLAN MARKETING GOALS

price

The marketing goals for AURARUM within one year and the phase of introduction of AURARUM® Day Crème: 1/ Acquiring a base of new customer within Denmark.

2/ Introducing the complete AURARUM® Portfolio to Danish retailers.

3/ Grow market share within the Danish market for cosmetic products.

4/ Raising Brand Awareness amongst active Danish women at the age of 60+.

5/ Introducing the whole product line: AURARUM® Cleansing Serum and AURARUM® Lipstick.

The next tool of the four P´s is the price or elsewhere the customer costs. The product is placed at upper scale of price. The customer pays 200DKK to purchase the make-up. Very loyal customers are able to sign in for a membership and can receive special discounts in personalized e-mails. place

MARKETING MIX The marketing mix of the four P´s builds the tool Aurarum uses to “influence the demand for its product.”(Kotler) Since our focus is on the customers´ wants and needs the four P´s in terms of product, price, place and promotion are described under the consideration of the four C´s in terms of consumer, customer costs, convenience and communication. product The first variable is the product or rather consumer. Aurarum offers make-up for elderly women that comes with the benefits of facial skin care, SPF factor and effective moisture management and is suited to be used in an active and engaged lifestyle. We approve only natural and organic ingredients, in order to offer to our customer a high quality product. Furthermore, the focus on sustainability throughout the whole Aurarum´s supply and production chain meets the customer demands in today´s society.

We will put high emphasis on after sales services thus the brand shall facilitate an exchange of experiences and build a community around the product, which will function as a base for like-minded people and can potentially create brand resonance such as new friendships within the age group.

The design of Aurarum´s make-up is kept simple and classy, just like the values of its customers. The bottle is kept in black and reflects elegance. The handle use without the need of a brush engages perfectly with the customers´ needs of an uncomplicated appliance in a busy and active lifestyle.

As for the packaging Aurarum translates its customers value in a feminine way by having a white packaging with flower applications. The most important characteristic of its packaging though is the use of only recyclable material. Aurarum assures sustainability throughout its whole process of production.

Further on, the third part of the marketing mix is the place/convenience. Our product is available at several retail stores and online at a web-shop. As for the retailers and distributors seen as stakeholders, Aurarum has a set of different criteria they need to fullfil. With a focus on personal contact AURARUM shall be represented by well-educated staff to build a trustworthy relationship with customers and create a pleasant atmosphere. They will be trained to give recommendation as well as a profound introduction to the brand and their values. In addition the whole store needs to display the products characteristics such as high quality, personalized service and convenience during shopping. Examples for retailers in Denmark are the department stores Magasin du Nord and Salling or specialised stores like the Pure shop. It is an essence that Aurarum´s product is always available which is why the suppliers are all located in Europe. They have been chosen carefully according to reliability and environmental friendly standards. A short lead time supports a time to market strategy with keeping production and quality standards up.

Ordering the make-up online, we have a “Next-Day-Delivery” Policy. Additionally, we provide free delivery service. promotion The last and forth variable of the four P´s is the promotion/communication.

AURARUM reaches its targeted consumers through channels they regularly use or are confronted with. This is especially important to take into consideration since we target a niche segment. Drect marketing tools such as direct mail promote the campaign and the product launch advertising on the TV channels at prime time as well as intensive commercial during the late morning shall gain the attention of Danish women and housewives at the age of 60+. Furthermore citylights, magazine advertising and flyers shall draw the attention to our product and raise awareness. The website will be life before the launch of the products to gradually release bits of information leading up to the actual launch date of the products as well as our very own online store offering all products. Even though the targeted segment still may

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Aurarum® 2015

be active, they may not be appealed by mass advertising so we consider best customized material and addressing them personally. Selected customers of cooperating department- and drugstore will additionally receive samples and offers for complementary consultation by mail and will be informed about our outstanding combination of skincare and make-up as well as our sustainability policy in advance to the launch on may 2nd 2016.

Throughout the process of launching we will adapt the marketing strategy to the current stage of launch such as increasing online marketing after launching the online store. Also we will wisely select channels for advertising continuously and exchange the ads suited to seasons as for example for on citylights.

As a prospective marketing strategy for the future PR efforts like Pop-Up stores in major international countries could be considered to test the responds of other markets and build foundation to enter new markets.

MARKETING BUDGET The business shall provide a high amount of added-value to the product and strives to minimize costs wherever possible. Fixed costs include expenses for raw material, manufacturing facilities, rent, salaries, logistics such as distribution, R&D and marketing expenditures. Moreover supplementary variable costs consist of irregular quality testing, employment of freelancers. Determining all costs the total cost for AURARUM® Day Crème sums up to DKK 150. With a desired return on sales of 25% the cost-plus pricing is DKK200.

Current competing skincare and make-up products sell at retail prices between DKK 100 and DKK 500. AURARUM® plans to introduce its new Day Crème at a medium level to be able to compete and establish their appearance on the niche market. We first consider AURARUM®’s pricing decision from a consumer perspective and the competitive environment and take the value-approach while considering the cost perspective.

Our budget consists of the calculation of product development costs, marketing & sales costs and Cosmetic Start-up costs.

Considering the product development costs include raw material, packaging, labelling and production activities.

Furthermore hidden costs like testing need to be considered as they are of high importance for the cosmetic business of AURARUM®. Estimating costs of DKK40 per unit, overall costs for the first year account to DKK400.000.

Additionally the business required R&D profound testing which adds DKK30.000 per year to the overall development costs.

Marketing & Sales Costs include the running of a website including a web shop, flyers for in-store advertising,

brochures and citylight billboards. Such costs sum up to approximately DKK85.000, which will be reduced in the following years as the brand builds awareness.

Concluding the overall costs of starting up AURARUM® as a cosmetic business account to DKK515.00. All founders of the AURARUM® company will contribute 10% of the overall costs to the business. The remaining 50% shall be covered by a bank loan and sum up to DKK250.000.

SALESFORECAST The population of Danish women at the age of 60+ for the year 2015 is 1.387.946. Assuming that 10% are still physically active our target group consists of 138.795 people. Assuming to sell to 7% of our target group the numbers of unit we suppose to sell to retailers account to estimated 10.000 unit for the first year. Looking at the demographics development according to STATISTICS DENMARK numbers until 2030 increase steadily. Therefore we forecast an increase in sales accordingly.

The total first-year sales revenue for AURARUM® if projected at DKK 500.000, with an average wholesale price of DKK 200 per unit of AURARUM® Day Crème. For the following year AURARUM® is expected to increase the number of unit to be sold so that cost can be covered by the revenues. Furthermore, we expect to be able to start paying back the loan over the next five year and start earning profit FINANCIAL RISK AURARUM® business introducing a new and first product to the market takes into account certain financial risks. First and foremost the overall risk of financing their business covers the way the company pays for losses in the least costly way as possible. In order to curb financing risk further monitoring of credit risk, interest rate risk and currency risk shall be observed to increase the businesses’ effectiveness. Firstly the credit risk can highly impact AURARUM®’s performance. This implies the risk of failure of repaying a loan and will especially increase the risk for the company when using future cash flow to cover currents debts. To compensate such risks investors demand interest payments or similar debt obligations from AURARUM®. However interest rates also entails risk that will change the value of investment, which eventually will impact securities of AURARUM®. Concluding AURARUM® shall consider currency risk when expanding to other markets outside of Denmark. Moreover the risk will become more important when the company acquires assets across national borders.

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Aurarum® 2015

CONTROL EVALUATION OF PERFORMANCE In order to ensure that all objectives and goals are achieved AURARUM® shall measure and evaluate all results of their marketing strategy and the according action plan. Thus in case of discrepancies the company are able to take actions in order to correct them and align all activities to meet their goals.

Their constant operational marketing control shall measure the overall performance as an extension of marketing planning to prospectively create a successful brand image on the targeted market. With an insight into the marketing mix this enables the marketing department to determine areas that need to be modified. Thus the marketing plan shall be continuously adjusted to meet the customers’ and all stakeholders needs. Furthermore strategic control involves looking at basic strategic aspects and their match to market opportunities.

Marketing Key Performance indicators (KPI) and data will help to ensure that the company is conveying the right message and therefore are able to continuously optimize their performance. In order to get an overview of the impact of marketing campaign, Return on Marketing Investment (ROMI) calculation enables the brand to identify how much money our campaigns are generating in comparison to the cost of running them. It indicates whether the campaign was successful to generate new customers and revenues.

In addition to financial ratios, the marketing communication activities shall be measured by tracking direct response. To measure the success of our communication strategy in more detail AURARUM® shall track social media exposure and direct mail response rates to control meetin the agreed key communication goals. In-store survey shall be done to get more specific answers to questions and more qualitative information about customer‘s impressions on a brand.

Same applies for online orders. The brands website can function as a source of data. Measurement of impact using website’s traffic statistics, which in connection to specific time periods, indicates the customers origin and their preferences. Furthermore, it provides insight into the impact of special promotion and advertising campaigns and enables the brand to evaluate the effects on sales.

Implementing Customer Relationship Management (CRM) during the process of measuring the businesses performance makes easier to draw an overall conclusion about marketing processes and success while keeping a customer on a first place of interest. It also enables the business to better understand how clients move through the sales funnel and gives helpful indications for prospective targeting adjustments.

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APPENDIX I/ Business model canvas

• suppliers with a sustainability code of conduct • indepedent laboratories and dermatologists • retailers • Make-Up artists

• R & D on sustainable sourcing and production • quality testing • active advertising • retailing • cooperation with related brand

• • • •

nourishing skincare beauty-enhancing benefits long-lasting staying power resistant to enviromental impact • skin protection (SPF) • product from the line can be used together • sustainability at heart of the supply and value chain

• customer service, assistance and cosmetic • buildings, laboratories, consultation manufacturing facilities, • independent quality warehouse storage, office ensurance premises • relying on latest medical • distribution network, retail research stores, shelf space, logistic infrastructure • educated staff, dermatologists • financial assets • fixed costs: raw material, manufacturing facilities, rent, salaries, logistics • variable costs: quality testing, employment of feelance Make-Up articts, Marketing expenditures

• consultation • sales & after sales service • personal cosmetic consultant • brand community

• • • •

• danish market • middle - upper class • elderly women • 60+ • well situated • health conscious • youthful spirit • active lifestyle

retail stores online stores direct mail mail order

• asset sales • fixed pricing mechanism

Online sources: STATISTA: The statistic Portal

Available from: http://www.statista.com/statistics/382100/european-cosmetics-market-volume-by-country/ Accessed on 02.06.2015

STATISTA: the statistic Portal 2

Available from: http://www.statista.com/statistics/243967/breakdown-of-the-cosmetic-market-worldwide-by-product-category/Accessed on: 02.06.2015

Cosmetics Europe: The personal Care Association

Available from: https://www.cosmeticseurope.eu/about-cosmetics-europe.htmlAccessed on: 02.06.2015

USA Today News

Available from: http://usatoday30.usatoday.com/news/health/story/health/story/2011/08/Anti-aging-industry-grows-with-boomer-demand/50087672/1Accessed on: 02.06.2015

European Commission

Available from: http://ec.europa.eu/social/main.jsp?catId=502Accessed on: 02.06.2015

Physical Activity Council

Available from: http://www.physicalactivitycouncil.com/pdfs/current.pdfAccessed on: 02.06.2016

European Demographic Data sheet

Available from: http://www.iiasa.ac.at/web/home/research/researchPrograms/WorldPopulation/PublicationsMediaCoverage/ModelsData/EU_data_sheet_2014.pdfAccessed on: 02.06.2015

The Beauty Company

Markets and Markets: Available from: http://www.marketsandmarkets.com/Market-Reports/cosmetic-products-market-240004417.htmlAccessed on: 02.06.2015

Photobucket

Available from: http://s562.photobucket.com/user/madhedge/media/USCBJapan.gif.htmlAccessed on: 02.06.2015

Statistikbanken

Available from: http://www.statistikbanken.dk/statbank5a/default.asp?w=1366Accessed on 02.06.2015

Aurarum速 2015

III/Brand Touchpoints

Aurarum bottle

Aurarum package

Aurarum citylights

Aurarum website