Mulberry Cosmetics by Tierney Kelman

MULBERRY COSMETICS 1

CONTENTS EXECUTIVE SUMMARY

INTRODUCTION 9 1. THE PROPOSAL 1.1 Company Overview 1.2 The New Product 1.3 Unique Selling Point 1.4 Ansoff Matrix

11 12 16 18 20

2. THE MARKETING MIX 2.1 People 2.1.1 Demographics 2.1.2 Spending Power 2.1.3 Marketing Typologies 2.2 Product 2.2.1 Product Overview 2.2.2 CAD Range Plan 2.2.3 Sourcing Strategy 2.2.4 Sustainability/ethical manufacture 2.3 Price 2.3.1 Pricing Policy and Architecture 2.3.2 Price Matrix 2.3 Place 2.4.1 Distribution Strategy 2.4.2 Omni-Channel retailing 2.5 Position 2.5.1 Price/Style Matrix 2.5.2 Competitor Evaluation

23 24 26 30 32 39 40 42 48 50 53 54 56 59 60 62 65 66 68

CONTENTS 2.6 Promotion 2.6.1 Branding 2.6.2 Experiential Retailing 2.6.3 Integrated Marketing Strategy 2.7 Persuasion

73 74 78 82 89

3. BUSINESS PLANNING 3.1 Sales Revenue 3.2 Expenditure 3.3 Capital Funding

93 94 96 98

4. SWOT ANALYSIS 4.1 Strengths 4.2 Weaknesses 4.3 Opportunities 4.4. Threats 5. CONCLUSION

101 102 104 106 108 111

6.BIBLIOGRAPHY 115 7. APPENDICES

119

EXECUTIVE SUMMARY The report has been conducted to develop a product or service where there is a gap in the current market. The cosmetics industry is expected to grow year on year by 4% to 2018, therefore indicating an opportunity to extend a brand into this sector due to its great stability. Through extensive primary and secondary research, Mulberry was established to be a brand which has the right characteristics to extend their portfolio. Mulberry is renowned for its high quality and unique British branding however is alienating its core consumers with the prices of their goods increasing dramatically. In order to expand its consumer reach this report explores how Mulberry can develop Mulberry Cosmetics to become a premium cosmetics line to ultimately be sold nationwide as an entry level product. In turn this will create a complete lifestyle brand to regain the trust and sales Mulberry is currently losing. The recommended developments include: Creating high quality and superiorly designed cosmetic range Market Mulberry Cosmetics through a variation of engaging methods Promote the product range using an endorser to influence buying decisions Capitalise on the â&#x20AC;&#x2DC;Made in Britainâ&#x20AC;&#x2122; label which is becoming incredibly important to all consumers

INTRODUCTION This report has been conducted to develop a premium brand cosmetics line for luxury British brand, Mulberry. The objective of this cosmetics line is to expand Mulberry’s audience reach and to create a lifestyle brand to give consumers the whole package. After researching the cosmetics market and the trends within, it became apparent that European brands are amongst the most desirable in the world (Mintel, 2013) with consumers returning to ‘local’ brands after the instability of the global economy in recent years (Hales, 2011). In addition entry levels products are vital to brands to capture younger shoppers to ‘curate a long term loyalty’ (Mintel, 2013). Understanding Mulberry as a brand, consumers perceptions and the cosmetics market used primary research sources including questionnaires, focus groups as well as secondary sources such as: Mintel WGSN LSN Global Warc Throughout this project there was limitations; in gathering focus groups, timing and location became difficult to arrange therefore individual interviews were conducted which ultimately didn’t create the same atmosphere altering responses to the proposal. Another area in which there was trouble to fully grasp was the sourcing and manufacturing of cosmetics. Due to many ingredients being available with each having individual qualities and uses, it was complicated to understand which ingredients would be the best to use in order to comply with manufacturing standards. In regards to business planning, figures were created by heavily using guesstimation due to the fact that the project is only a proposal and in order to get true representational costs it would have been too time consuming.

1. THE PROPOSAL

1.1 Company Overview

Mulberry was established in 1971 by Roger Saul after he was gifted £500 from his parents for his birthday. Named after the Mulberry tree he passed each day en route to school, the business started with plaited belts and chokers. For the first few years, products were successfully sold in the Biba boutique, London. However 1975 was the year Mulberry’s secured its place in the world’s heart. The ‘Hunting, Shooting, Fishing’ collection was full of English references and was seen as fashion with a softer touch. Since then, Mulberry has developed into a global brand yet remaining close to its founding principles; the flagship factory base in Somerset, the dedication to quality that can be seen in every Mulberry item, the combination of beauty and practicality, and the unwavering passion for leather craft. It’s iconic Mulberry tree logo can be spotted on all of the signature leather bags usually on, perhaps the best known detail, the postman’s lock inspired by the catch on a postman’s satchel. At present Mulberry offers womenswear, bags, shoes and accessories in addition to men’s accessories and travel products.

£ 165.1 million £ 25.5 million £ 26.0 million Total revenue (year ending March 2013)

Operating profit (year ending March 2013)

Profit before tax (year ending March 2013)

(Mulberry, 2014)

Current Portfolio

Womens Bags

Accessories

Womenswear

Shoes

Travel

Menâ&#x20AC;&#x2122;s

1.2 The New Product

MULBERRY COSMETICS

It has become apparent that the UK colour cosmetics market is missing a premium cosmetics line from a luxury British heritage brand. Mulberry stands out as one of the UK’s iconic brands known for its luxury goods. However, with the current product portfolio and high price range, Mulberry can be seen to be alienating its core customers (The Guardian, 2014). Therefore in order to regain and expand Mulberry’s customer base, Mulberry Cosmetics will be introduced. There are several objectives which Mulberry Cosmetics is aiming to meet; expand Mulberry’s product portfolio in order to become a lifestyle brand through diversification, regain consumers who have lost trust in the brand or global brands following the economic downturn (Hales, 2011), become a premium cosmetics line with a true British background and to offer entry level products for new consumers to buy into the brand in turn to curate a loyal life long relationship (Mintel, 2013). 16

1.3 Unique Selling Point

With consumers pulling away from ‘Global’ and returning to local brands after the economic downturn (Hales, 2011), Mulberry has the advantage to capitalise on this unique opportunity and boost their credibility. European brands are still amongst the most desirable in the world therefore once Mulberry Cosmetics is established it could lead to worldwide expansion once the global economy is stable again. Consumers are wanting to ‘buy into a brand because it’s quality without having to research it’ (Cherrie, 2013) and with Mulberry already being ‘associated with premium quality, superior design’ (Jessica, 2014), ‘wealth, class and long lasting products’ (Sydnie, 2014), the brand should take advantage of this perception which is likely to carry over to Mulberry Cosmetics. 18

1.4 Ansoff Matrix

Market Penetration

Product Development

Existing Product Existing Market

New Product Existing Market

Market Development

Diversification

Existing Product New Market

New Product New Market

Mulberry cosmetics is classed under the product development section of the Ansoff Matrix. The proposal relates to this section due to the cosmetics market already being well established; however, for Mulberry, cosmetics are a new product area. This method allows growth by capitalising on the Mulberry brand name (Posner, 2011:100). The extension of the new product line needs to focus on differentiating from current competitors itself in order to penetrate the market and gain consumers. 20

2. THE MARKETING MIX

2.1 PEOPLE

2.1.1 Demographics Employment 13.8 Million women will be in work by 2018 (Mintel, 2013). 12.6% decrease in the number of females who will be unemployed by 2018 (Mintel, 2013). 25% of the world’s population will be over 50 by 2020 (Euromonitor, 2011).

Generation Y 45% of consumers have requested an email from a luxury brand (LSN Global, 2013). 25% have followed brands of twitter or ‘liked’ a brand on Facebook (LSN Global, 2013). Under 25s are the most experimental with colour cosmetics to align with their lifestyle and spend the most on all make-up segments (Mintel, 2013). Almost six in ten (57%) women under the age of 25 feel more confident when wearing make-up (Mintel,2013).

4 in 10 high earners wear make up to look more professional (Mintel, 2013).

79% of women have used face and eye make up within the last 12 months (Mintel, 2013).

Only 17% of Londoners agree that cheaper make- up products are just as good as expensive ones (Mintel, 2013).

88% of those living in households with an income higher than ÂŁ50,000 use face products (Mintel, 2013).

Products 42% of women over 65 use lipstick daily (Mintel, 2013). 4 in 5 women use face and eye products to enhance their features (Mintel, 2013). 87% of women under 55 indicate high usage of all colour cosmetics segments (Mintel, 2013). 27% of 1000 women asked use foundation daily and 26% use lipstick daily (Mintel, 2013).

Key Analysis With employment rates of women on the rise and 40% of women in high earning incomes wearing make up to look more professional, this ultimately means women will have more disposable income to spend on themselves. It is also important to note that women canâ&#x20AC;&#x2122;t live without cosmetics even if they choose to spend on clothes, shoes, plastic surgery e.t.c. as Makeup is one of the most important ingredient for enhancing a womanâ&#x20AC;&#x2122;s confidence (The Richest, 2013). Generation Y are indicated as the most experimental with cosmetics therefore it is integral to Mulberry Cosmetics to reach out to these consumers in order to gain their trust and curate a loyal relationship with them.

2.1.1 Spending Power Gen Y will have more spending power than any other generation by 2017 (Yarrow & O’Donnell), Gen Y have a confidence to earn, and with so many financial opportunities arising for them at the current time, they are the generation with great influence how friends and family spend their money. The 16-24 age group spend more on all make-up segments, particularly face and eye makeup (Mintel, 2013 ) 84% of Millennials say social opinions influence their purchase decisions, and 51% trust “strangers” more than friends (Nelson, 2012), 1 in 10 women over 65 spend the most on face and eye make up (Mintel, 2013) I’ll research stuff by going onto blogs, YouTube and I see what the bloggers and the make– up artists are using (Sarah, 2013). I buy from brands that I trust, then I won’t think twice about the quality (Cherrie, 2013)

2.1.3 Marketing Typologies The (in)dependents

The (in)dependents are young, free to spend their money how they wish and appreciate the luxury lifestyle. As they still live at home with their parents and have a full-time job, they have no worries about paying bills therefore splurge on items to enhance their social status. Spending a lot of time out and about, the (in)dependents have a continuous flow of new items in their wardrobe and make-up bag. 32

The New Luxury Millennials

The New Luxury Millennials (NLMs) are defining the new wave of luxury spending. They look for craftsmanship and tradition and already buy into Mulberry and premium beauty products (LSN Global, 2013). With their busy lives, they eat out regularly and like to invest in quality products they know they are going to get good use out of. 33

The Modern Mothers

The Modern Mother (Mo-Mo) has taken a hands-off approach to parenthood. She retains an interest in style, beauty, travel, life and work. Travel is an escape, clothing is basic with a few more expensive items and her diet aims to be healthy but indulgent in some areas. The Mo-Moâ&#x20AC;&#x2122;s do not wish to be defined by motherhood and have a desire to be empowered through persuing her interests (LSN Global, 2013), 34

The Fifty+ Affluent Business Women

The 50-plus affluent businesswomen (FABs) are women who know what they want and what they deserve. Born into the Generation Jones (1946-65) and Baby Boomer (1946-1964) generations, they have grown up with strong economic growth and were the first women to persue careers (LSN Global, 2013). Now, these women are either still working hard or retired, they are arguable the most influential group for luxury markets today (LSN Global, 2013. 35

Psychographic Profile

Mulberry Cosmetics consumers have been placed on this psychographic profile after analysing their beauty habits and attitudes towards beauty products. The five beauty typologies have been based on secondary research which explores how the fast paced beauty market forms and develops consumers beauty regimes (refer to appendix A). 36

Buying Motives

The (in)dependent

The NLM

Emotional Motives: Curiosity Fashion Pride and prestige in society

Emotional Motives: Curiosity Fashion Pride and prestige in society Sex and romance

The Mo-Mo

The FAB

Emotional Motives: Pride and prestige in society Sex and romance

Patronage: Friendliness behaviour Quality

Patronage: Quality

Each Mulberry Cosmetics consumer typology has different buying motives when purchasing their beauty products. Emotional buyers purchase based on their feelings, rational buyers purchase on sound judgement and patronage buyers purchase products by considering the store they will purchase from. (For more information and definitions refer to appendix B) 37

2.2 PRODUCT

2.2.1 Product Overview

Mulberry is inspired by the cool of the city and craft of the countryside and uses quality materials in its production. To keep in line with this the Mulberry Cosmetics collection has been designed with this in mind. The key shapes of products have developed from the iconic post mans padlock on Mulberry handbags (page 41), To enhance the aesthetic, products are made from moulded plastic in a gold tone with a high shine. Consumers wanted products where they can tell they are running low, therefore foundation bottles have been made transparent in order to see the remaining product. 40

2.2.2 CAD Range Plan Face

Product Name: Felicity Foundation RRP Price: £38.00 Cost Price: £10.25 Margin: 73.03% Colour Options: Porcelain Fawn Buttermilk Cameo Honeydew Mocha

Product Name: Escott Foundation RRP Price: £36.00 Cost Price: £11.90 Margin: 66.94% Colour Options:

Product Name: Milton Foundation RRP Price: £36.00 Cost Price: £11.90 Margin: 66.94% Colour Options:

Porcelain Fawn Buttermilk Cameo Honeydew Mocha

Porcelain Fawn Buttermilk Cameo Honeydew Mocha 42

Product Name: Walton Concealer RRP Price: £24.00 Cost Price: £8.90 Margin:62.92% Colour Options: Porcelain Fawn Buttermilk Cameo Honeydew Mocha

Face

RRP Price: £28.00 Cost Price: £9.90 Margin: 64.64% Colour Options:

Porcelain Fawn Buttermilk Cameo Honeydew Mocha

Product Name: Katherine Loose Powder RRP Price: £29.00 Cost Price: £8.40 Margin: 71.03% Colour Options:

Product Name: Bruton Bronze Powder RRP Price: £29.00 Cost Price: £7.50 Margin: 74.14% Colour Options:

Porcelain Fawn Buttermilk Cameo Honeydew Mocha

Sunkissed Golden Bronze

Product Name: Cordelia Cheek Powder RRP Price: £26.00 Cost Price: £8.60 Margin: 66.92% Colour Options: Mistyrose Peachpuff Lightcoral Lavenderblush Honeydew Burleywood

Eyes

Product Name: Barlake Mascara RRP Price: £26.00 Cost Price: £6.00 Margin: 76.92% Colour Options: Midnight Walnut

Product Name: Abbey Mascara RRP Price: £26.00 Cost Price: £6.00 Margin: 76.92% Colour Options:

Product Name: Paddington Pencil Liner RRP Price: £18.00 Cost Price: £4.50 Margin: 62.5% Colour Options:

Midnight Walnut

Product Name: Oxford Gel Liner RRP Price: £20.00 Cost Price: £6.90 Margin: 65.5% Ingredients: Colour Options: Midnight Walnut

Product Name: Foxcote Quad Eyeshadow Palette RRP Price: £32.00 Cost Price: £10.00 Margin: 68.75% Colour Options: Ballerina Sea Storm Mystery Woodwork

Product Name: Louisa Single Eyeshadow Colour RRP Price: £22.00 Cost Price: £8.25 Margin: 62.50% Colour Options: Iridescent White Powder Blue Bisque Old Lace Muted Stone Wheat 45

Mint Dew Pistachio Blue Grass Twilight Firebrick Slate Grey

Product Name: Taunton Brow Pencil RRP Price: £19.00 Cost Price: £6.00 Margin: 68.42% Colour Options: Moss Conker Bark

Product Name: Christon Base Primer RRP Price: £23.00 Cost Price: £8.40 Margin: 71.03% Colour Options:

Product Name: Hutton Brow Powder RRP Price: £28.00 Cost Price: £8.40 Margin: 70.00% Colour Options: Moss Conker Bark

Crystal

Product Name: Sparkford Highlighter RRP Price: £25.00 Cost Price: £6.00 Margin: 76.00% Colour Options: Pearly Sunlight

Product Name: Eloise Lip Gloss RRP Price: £23.00 Cost Price: £6.00 Margin: 73.91% Colour Options: Cappuccino Sugar Shimmer Watermelon Soft Serenade Charming Pink Orchid

Good Earth Sierra Cotton Candy Barely Nude Champagne Timid Pink

Product Name: Florence Lipstick RRP Price: £25.00 Cost Price: £8.40 Margin: 66.40% Colour Options: Cappuccino Sugar Shimmer Watermelon Soft Serenade Charming Pink Orchid 47

Good Earth Sierra Cotton Candy Barely Nude Champagne Timid Pink

Product Name: Yarley Lip Liner RRP Price: £18.00 Cost Price: £4.75 Margin: 73.61% Colour Options: Champagne Good Earth Charming Pink Cappuccino

2.2.3 Sourcing Strategy

To follow through with Mulberry’s current manufacturing, Mulberry will dedicate part of their newly opened factory, The Willows, to manufacturing Mulberry Cosmetics to benefit from promoting the goods as ‘Made in Britain’ in addition to providing more jobs for locals. To source raw materials Mulberry Cosmetics will collaborate with Birchwood Chemicals. Based in London and with over 30 years experience ,the company ‘have established secure and reliable sources of supply for cosmetic ingredients (Birchwood Chemicals, 2014). Mulberry will be able to work with Birchwood Chemicals when developing their ingredients and researching new ones. 48

2.2.4 Sustainability/ Ethical Manufacture

Fundamental to the production of Mulberry Cosmetics is to ensure that all products comply with the European Cosmetics Directive standards. To ensure Mulberry Cosmetics follow the regulations set Mulberry will have to employ specialist experts when developing the ingredients for each product. With products that use animal testing banned in Europe, nevertheless with Mulberry supporting the ban, cosmetics will be tested through scientific processes in approved laboratories. Mulberry will display the ‘Green Dot’ symbol proving that the brand has paid an annual license fee to a ‘national packaging recovery organisation’( Valpak, 2014). It reassures consumers Mulberry Cosmetics takes responsibility to recovering and recycling packaging. 50

2.3 PRICE

2.3.1 Pricing Policy & Architecture

Mulberry Cosmetics will be priced in line with competitors so that pricing will not be a disadvantage to the new product line. Each product will also have a profit margin between 60-80% in order to maximise sale revenue. 54

Top price products

Luxury material handbags

Womenswear

Premium-price products

Accessories

Mid-price products

Lowest-price products

Cosmetics

Although Mulberry cosmetics will be a premium priced cosmetics line it will be in the lowest price tier of Mulberry’s complete product portfolio to ‘offer consumers affordable entry-level products’ (Posner, 2011:39). The aim of Mulberry havng products in this tier is so the business can satisfy the greatest number of consumers and generate the highest potential sales margin and profit (Posner, 2011:39). 55

2.3.2 Price Band Matrix

The above graph demonstrates the prices for each product. Due to Mulberry Cosmetics being a new product line there is only one price set for each product, however this could change once the line has developed. In addition the prices have been set to consumers expectations for premium branded cosmetics. 56

Pricing Strategies Matrix

Quality High

Low Low

Economy

Penetration

Price

Skimming

Premium

High

Mulberry cosmetics will be a premium priced cosmetics line due to its high quality and high price which is where consumers would expect the new product line to sit (Posner, 2011:38). 57

2.4 PLACE

2.4.1 Distribution Strategy

New Bond Street

Selfridges

Brompton Road

Harrods

Westfield White City

Harvey Nichols

The Mulberry cosmetics range will be sold in three key Mulberry stores in London and distributed to select department stores (Harrods, Harvey Nichols and Selfridges) in the initial two phases of the new range. As the product awareness and demand develops, the range will expand to be sold in high end department stores including John Lewis, House of Fraser, Debenhams and Boots. This will allow a varied consumer base to have access to purchasing the cosmetics in destinations where key competitors are already stocked giving the customer options to make an educated purchase and also to take advantage of footfall to ultimately commandeer market share. The phasing in process is explained in the diagram on page 61. 60

Phase One Introduce Mulberry Cosmetics into three Mulberry stand alone stores: at: New Bond Street, Brompton Road and Westfield White City.In addition there will be an exclusive concession in Selfridges, London.

Phase Two Once Mulberry Cosmetics has established itself into the market, the brand will have 2 more concessions in Harvey Nichols, London and Harrods.

Phase Three After Mulberry Cosmetics gain market share and build prestige, the line will then expand to being stocked in national luxury department stores.

Phase Four After the cosmetics line is fully operational and consumers are accustomed with Mulberry Cosmetics, concession will be introduced to national high street retailers.

2.4.2 Omni-Channel Retailing

To create a t to the consumer experience and as another vehicle to relay the brands ethos (Sheikh,2009), Mulberry Cosmetics will offer a variation of methods to purchase from. According to primary research, consumers like to have options as to where they purchase cosmetics, therefore Mulberry Cosmetics will intially be sold as explained on page 57 as well as on Mulberry.com and through the Mulberry app for smart phones and tablets. 62

2.5 POSITION

2.5.1 Price/Style Matrix

High Price

Cosmetics

Skincare

Low Price Mulberry Cosmetics will be a premium brand cosmetics only line towards the higher price range of all current brands in the cosmetics market. Key competitors will include Burberry, Tom Ford, Yves Saint Laurent, Dior and Chanel. 66

2.5.2 Competitor Evaluation

The four key competitors for Mulberry Cosmetics has been established through holistic analysis of primary and secondary research. Burberry, Chanel, Dior and Yves Saint Laurent all offer cosmetic collections which have developed after the brands started as a fashion houses. 68

Product Branding

All four competitors brand their products by imprinting. Chanel, Dior and Yves Saint Laurent all imprint their logo into products and Burberry uses their iconic check print. 69

Advertising

Burberry, Chanel, Dior and Yves Saint Laurent all advertise in a variation of media including print and online. Central to all competitors advertsiing is their use of famous faces to promote their products because â&#x20AC;&#x153;celebrity endorsements can help beauty brands connect with consumers. By matching the celebrityâ&#x20AC;&#x2122;s attributes and style to those of the brand and its productsâ&#x20AC;? (GCI Magazine, 2012) they are able to build brand awareness and can influence consumers into purchasing from a brand (Financial Post, 2013). 70

Beauty Counters

All four key competitors counters display product testers clearly with adjustable mirrors. Each counter continues to convey the brands ethos in every location they are stocked in order to keep help consumers identify them. 71

2.6 PROMOTION

2.6.1 Branding Brand DNA

Who is the Mulberry Cosmetics consumer? Luxury, Personality Who do they aspire to be like? Traditional, Englishness, Craftmanship. What the Mulberry cosmetics consumer believes in What Mulberry Cosmetics gives the consumer, it makes them feel... What Mulberry Cosmetics does for the consumer, it makes them... Why the benefits are true What are the key ingredients What is Mulberry Cosmetics USPs?

Quality, Image, Recommendations. Beautiful, Elegant, Admirable.

Values

Emotional Benefits

Impressive, Status, Exclusivity.

Traditional style, Timeless, Mulberry tree logo, Quality, Elegant packaging. Premium cosmetics from an luxury English brand that focusâ&#x20AC;&#x2122; on tradition and quality.

Englishness, Premium, Tradition and Quality.

Physical Benefits

Attributes

Positioning

Essence

Packaging

To continue with Mulberry’s current branding, the Mulberry Cosmetics packaging has been designed with ‘the cool of the city and craft of the countryside’ ideology in mind as well as the brands quirky Englishness connotations. Products will be made from moulded plastic in a gold tone for compacts with a black vinyl sticker of the Mulberry logo on the top of products and outer packaging will me made from grey card with a gold Mulberry Cosmetics logo. 75

Brand Touchpoints Beauty Consultant Promotion

Product Displays

Advertising

Experiential Retailing

Website

Packaging, Carrier bag, Labelling

PR Press Media

Product Quality

Product Performance

Returns Policy

The brand touchpoints as in the above diagram, are ways in which Mulberry Cosmetics will interact with consumers that occur pre-purchase, purchase and post-purchase. These touchpoints will express the brand ethos and identity to build brand and product awareness (Posner, 2011). 76

2.6.2 Experiential Retailing Counter

The Mulberry Cosmetics counter is a key focal point in each distributor location. Displaying promotional material, packaging and testers of the complete range in all colour variations allows the consumer to interact with the product. In order to keep high levels of hygiene, testers will be replenished on a weekly basis and when beauty consultants perform make overs they will use disposable tools per customer. 78

Inspirational Images

Mulberry Store, Berlin

Yves Saint Laurent, London

Visual Merchandising

Visual merchandising and promotional material are fundamental to highlighting key Mulberry Cosmeticsâ&#x20AC;&#x2122; products. The Felicity Jones advertising campaigns will be used in point of sale displays holding tester products in order to draw consumers attraction to experiment with them. Gift bags will also be arranged to display the packaging which, from primary research, has be noted as a buying motive for consumers. 80

ERRY

TICS

Beauty Card Key Concern: ........................................................................................................

Face Primer

........................................................................................................

Foundation

........................................................................................................

Powder

........................................................................................................

Blusher

........................................................................................................

Bronzer

........................................................................................................

Concealer

........................................................................................................

Eyes

MULBERRY COSMETICS

Eyeshadow

........................................................................................................

Mascara

........................................................................................................

Eye Liner

........................................................................................................

Eyebrows

.......................................................................................................

Lips Lipstick

........................................................................................................

Lip Gloss

........................................................................................................

Lip Liner

........................................................................................................

Consultant:

Beauty Card

MULBERRY

Date:

COSMETICS

Location:

Front

Inside

Back

Date:............................................................................ Time: .......................................................................... Beauty Consultant: ................................................ Location:.....................................................................

MULBERRY COSMETICS

Store Number:.........................................................

Appointment Card

Complimentary bookable make-overs are offered to customers who are given an appointment card with all the details on at the time of booking. The Mulberry Cosmetics beauty card will be used at consultations to note all the products used allowing the customer to take it away with them to recreate the look. It also gives the client the information on when and where the consultation took place and the name of the beauty consultant who gave the advice. 81

2.6.3 Integrated Marketing Strategy Advertising Campaign

Central to Mulberry Cosmetics launch is the use of an endorser to create a high quality perception of the brand to the consumer (Pill, 2009:626). Celebrity endorsements can also help Mulberry Cosmetics connect with consumers. By matching the celebrityâ&#x20AC;&#x2122;s attributes and style to those of the brand and its productsâ&#x20AC;? (GCI Magazine, 2012) they are able to build brand awareness and can influence consumers into purchasing from a brand (Financial Post, 2013). Felicity Jones will be endorsing Mulberry Cosmetics and will be used in the advertising campaigns to be featured in print, online and digital media. She represents the Britishness of the brand as well as being a famous face which target consumers have noted as an aspirational figure, 82

Undeground advertising

To promote Mulberry cosmetics around London, advertising will be used on the underground escalators and at Piccadilly Circus â&#x20AC;&#x2DC;Lightsâ&#x20AC;&#x2122;. These are prominent destinations for consumers who travel to work on the underground. Piccaddilly Circus receives over 1 Million visitors weekly with half of these being under 35 and a quarter under 45 (Piccadilly Light, 2014), capturing a large amount of Mulberry Cosmetics target consumers. 84

Piccadilly Circus ‘Lights’

Public Relations

Public relations will be used for Mulberry Cosmetics to build brand profile in order to gain public support and build product awareness to lead to product sales. In order to gain maximum impact, the PR strategy has been developed with the consumer in mind. The combination of PR through print, online and digital media will enable Mulberry to announce the launch of Mulberry Cosmetics to a wide audience, enhancing the brands success and sales. The collaboration with Felicity Jones as the face of Mulberry Cosmetics is a great talking point for journalists therefore aid the chances of publication. 86

Social Media

Social Media is paramount to launching Mulberry Cosmetics. As mentioned previously, in the lead up to the launch a blurred image of the Felicity Jones advertising campaign will be used to create excitement and mystery. To gain a wide audience pre-launch and launch campaigns will be across all social networks that Mulberry currently use. 87

2.7 PERSUASION

2.7 Persuasion

In order to persuade consumers to purchase the new product line, Mulberry Cosmetics will use the variation of methods as mentioned throughout this report. As Mulberry is renowned for its high quality products, by continuing with Mulberry’s current ethos and brand identity throughout the cosmetics line, this perception should ultimately reflect onto Mulberry Cosmetics giving it a strong position and high quality reputation instantly. Another brand touch point to capture consumers is the ‘Made in Britain’ tag, As aforementioned, British consumers are turning back towards local brands that they trust therefore with Mulberry Cosmetics being manufactured in the brands factory, ‘The Willows,’ this will pursuade consumers that they are a reliable brand wanting the best for their customers and their country of origin. The aesthetic and promotion of the product is also one which will influence consumers into purchasing. By using Felicity Jones as brand endorser and with products being inspired by the iconic post man’s lock on each Mulberry bag, this will make consumers feel that Mulberry Cosmetics is a credible brand and wish to use the products to enhance their social status. Research has also suggested that “the advertising that women gravitate towards tends to have a story and spokesperson that women genuinely connect with” (Warc, 2013). 90

3. BUSINESS PLANNING

3.1 Sales Revenue

For Mulberry Cosmetics to generate sales, the use of advertising, PR, the in-store/counter experience and brand positioning combined will create a brand that target consumers will want to buy from. Although PR cannot directly show how effective it is, through analysing the investment and how much advertising would have cost, PR can give a better return on capital employed. Sales of the cosmetics will be boosted through the use of make-up consultations at beauty counters in Mulberry stores and stockists. These are a way which consumers can try the products to see how suited they are to their skin and desired look. The E-commerce store will also give consumers the ability to purchase products at a time to suit them and a direct way of shopping. For more information on sales revenue refer to appendix D 94

3.2 Expenditure

£ 344,000 £ 250,000 £ 203,412 Marketing & Promotion

Felicity Jones as endorser

Manufacturing Costs

£ 797,412 Key Costs Total:

The main areas of expenditure in the production of Mulberry Cosmetics include the marketing & promotion, Felicity Jones as an endorser to the brand as well as the manufacture of all products. For full expenditure, see cash flow document in appendix D. 96

(15,480)

(10,248)

Financing activities: Dividends paid Proceeds on issue of shares Settlement of share awards Disposal of own shares

(2,906) 1 (1,504) 1,029

(2,310) 818 (4,358) 447

net cash used in financing activities

(3,380)

(5,403)

net (decrease)/increase in cash and cash equivalents

(5,435)

5,920

Cash and cash equivalents at beginning of year

27,293

21,373

cash and cash equivalents at end of year

21,858

27,293

net cash used in investing activities

3.3 Capital Funding

(

)

£21,858m x 3= 100 24

Mulberry Group plc

Mulberry-Annual Report 2013.indd 24

10 July 2013 12:22 PM-22726.04-proof 4

£655, 740

15/07/2013 07:14:51

Total Investment from cash in bank

In order to fund the expansion of Mulberry Cosmetics. 3% of Mulberry’s cash in bank will be put towards the manufacturing of products, marketing and all other costs involved. For the full Mulberry cashflow refer to appendix E. 98

4. SWOT ANALYSIS

101

4.1 Strengths All products are made in Britain The extension allows consumers to buy into the luxury brand Mulberry is already established as a trusted brand European brands are amongst the most desirable in the world (Mintel, 2013) Entry level product will allow younger shoppers to make first purchases and cultivate a long term loyalty to the brand (Mintel, 2013) Offering make-up consultations will add value to the customer experience Felicity Jones as endorser will connect with consumers and influence purchasing decision E-Commerce store is a key area for development of non-durables such as cosmetics Women becoming employed therefore will increase their spending to ensure a professional look in the workplace (Mintel, 2013)

102

4.2 Weaknesses Mulberry has no experience in cosmetics Business is unstable at current due to high prices alienating consumers Many premium cosmetics brands are already on the market and well established The factory, â&#x20AC;&#x2DC;The Willowsâ&#x20AC;&#x2122; could become over stretched Mulberry Cosmetics is a large investment which has may not give good return on capital employed Quantity levels may not meet demand leading to disappointed customers Products may not meet required European standards

104

4.3 Opportunities Once business with Mulberry Cosmetics becomes successfully Mulberry could expand into skin care and fragrance to diversify furthermore Expand Mulberry Cosmetics internationally Research into more scientific developments in cosmetics to become innovators in the field Regain loss of consumers as experienced over the past few years Use new marketing techniques to target consumers Become a leading cosmetics line developed from luxury fashion house Develop Christmas gift sets

106

4.4 Threats Failure to complete the transition into the beauty industry could adversely affect Mulberry’s cash flow The extension may affect the brand’s current activities Consumers may boycott the brand in the belief that Mulberry is getting ‘too big for it’s boots’ (Champ, 2014) Another leading fashion brand enters the market Mulberry is trying to penetrate An economic downturn could mean women turn to cheaper brands

108

5. CONCLUSION

111

5. Conclusion

This project has shown the methods in which Mulberry can extend their business in addition to filling a gap in the market for a premium cosmetics line from luxury British brand by introducing Mulberry Cosmetics. By creating a high quality range that flows from Mulberryâ&#x20AC;&#x2122;s existing brand ethos, the product will capture current consumers to purchase creating the Mulberry lifestyle. As an entry level product, the cosmetics range will also appeal to new consumers to give them the opportunity to buy into a luxury brand at an affordable level. With Mulberry having strong British heritage and associations with quality, superior design and long lasting products, the brand can use this to their advantage as consumers will perceive Mulberry Cosmetics to follow with these characteristics. To achieve the success of Mulberry Cosmetics, this proposal has outlined the right people to target, right product to sell at the right prices, in the right place with the right promotions. By imposing the suggested ideas Mulberry will be able to both fill the gap in the market to benefit the business as well as consumers. 112

114

6. BIBLIOGRAPHY

115

Birchwood Chemicals. (2014). â&#x20AC;&#x2DC;Companyâ&#x20AC;&#x2122;. Available: http://www.birchwoodchem.co.uk/company.htm. Last accessed 20th Mar 2014. Chand, S. (2014). Classification of Buying Motives: Product Buying and Patronage Buying. Available: http://www. yourarticlelibrary.com/business/classification-of-buying-motives-product-buying-and-patronage-buying/22154/. Last accessed 15th Mar 2014. Euromonitor. (2011). Demographic Changes: The Impact on Beauty and Personal Care Packaging. Available: http:// blog.euromonitor.com/2011/08/demographic-changes-the-impact-on-beauty-and-personal-care-packaging.html. Last accessed 17 Nov 2013. Financial Post. (2013). Want to take your business to the next level? Clinch a celebrity endorsement. Available: http:// business.financialpost.com/2013/05/20/celebrities-and-influencers-can-help-take-a-business-to-the-next-level/. Last accessed 22 Nov 2013. GCI Magazine. (2012). Not Just a Pretty Face:The Power of a Celebrity Endorsement. Available: http://www.gcimagazine. com/business/marketing/Not-Just-a-Pretty-Face-The-Power-of-a-Celebrity-Endorsement-177704111.html. Last accessed 21 Nov 2013. Hales, G. (2013). Revivalism. Available: https://www.lsnglobal.com/trends/view/3406. Last accessed 15.2.2014. Kreman,R. (2010). Cosmetics Testing without Animals. Available: http://www.technologyreview.com/news/417161/ cosmetics-testing-without-animals/. Last accessed 22nd Mar 2014. LSN Global. (2011). New Luxury Millennials. Available: https://www.lsnglobal.com/insight/tribes/view/4282. Last accessed 14 Nov 2013. LSN Global. (2013). Revivalism. Available: https://www.lsnglobal.com/trends/view/3406. Last accessed 1 Dec 13. LSN Global. (2013). The FABs. Available: https://www.lsnglobal.com/insight/tribes/view/4282. Last accessed 18th Mar 2014. LSN Global. (2014). The No-Mos, Mo-Mos and Fu-Mos. Available: https://www.lsnglobal.com/insight/tribes/view/8332 . Last accessed 18th Mar 2014. 116

Mintel (2013). Colour Cosmetics - UK - July 2013. Available: http://academic.mintel.com/display/638122/?highlight=true. Last accessed 2 Dec 2013. Mintel. (2013). Luxury Goods Retailing - International - August 2013. Available: http://academic.mintel.com/ display/643529/?highlight=true. Last accessed 2 Dec 2013. Mulberry Group plc. (2013). Annual Report 2013. Available: http://www.mulberry.com/investor-relations/pdf/annual_ report_2013.pdf. Last accessed 15 Nov 2013 Nelson, EM. (2012). Millennials Want to Party With Your Brand But On Their Own Terms. Available: http://adage.com/ article/digitalnext/millennials-party-brand-terms/236444/. Last accessed 20th Mar 2014. Piccadilly Lights. (2014). Home. Available: http://www.piccadillylights.co.uk/http://www.piccadillylights.co.uk/. Last accessed 20th Mar 2014. Posner, H (2011). Marketing Fashion. London: Laurence King. page: 38, 39, 100. Sayyed, Prof. A.R.. (2011). Price. Available: http://ars-marketing-price.blogspot.co.uk/2011/03/price.html. Last accessed 28th Mar 2014. The Richest. (2013). Most Valuble Cosmetics Brands In The World. Available: http://www.therichest.com/expensivelifestyle/most-valuble-cosmetics-brands-in-the-world/. Last accessed 28th March 2014. Valpak. (2014). Who Needs a Green Dot Licence?. Available: http://www.valpak.co.uk/compliance-services/internationalcompliance/green-dot. Last accessed 27the Feb 2014. Warc. (2013). The Truth About Beauty. Available: http://www.warc.com/Content/ContentViewer.aspx?ID=5c2edf1e-1e1043f9-b237-7417bf3600ad&q=beauty&MasterContentRef=5c2edf1e-1e10-43f9-b237-7417bf3600ad. Last accessed 18 Nov 2013. WGSN. (2013). Future scenarios: living forever - the ageing consumer. Available: http://www.wgsn.com/content/report/ Think_Tank/FutureScenarios/2013/August/future_scenarios.html. Last accessed 15 Nov 2013.

117

7. APPENDICES

119

Appendix A: Psychographic Profile

THE POWERFUL PEACOCKS (15% of the population) are particularly drawn to experimentation. They love the dynamism in beauty, in part because they're looking to get ahead in a dynamic world. Particularly present in rapidly growing China, Powerful Peacocks associate beauty with career success and power. seductive foxes THE SEDUCTIVE FOXES (27% of the population), the largest group globally, love to use beauty products to enhance their femininity. Seductive Foxes associate beauty with romantic and sexual prowess, and like using cosmetics to feel sexy. social butterflies THE SOCIAL BUTTERFLIES (16% of the population) love the beauty conversation. They enjoy sharing tips with their friends, being inspired by beautiful women, and the feeling of contentment and success that comes with looking beautiful. Particularly present in Latin America, Social Butterflies have grown up buying beauty products from their friends and neighbors who are direct sellers. THE GRACEFUL SWANS (23% of the population) like the subtle enhancements that come from using good beauty products. For them, beauty leads to confidence and contentment. Graceful Swans appear most frequently in Europe and the US, and like to focus on improving their existing beauty. THE COMFORTABLE CATS (19% of the population) are largely happy with their natural beauty. While they do use some beauty products, theyâ&#x20AC;&#x2122;re the least likely to hope for or expect dramatic changes. More concentrated in Europe and the US than emerging markets, Comfortable Cats view a few staple beauty products here and there as a means to feel even more comfortable in their own skin.

120

Appendix B: Buying Motives 1. Emotional Buying Motives: Buying motives based on feelings or passions are known as emotional buying motives. These motives are not based on judgement, but they purchase on the basis of motion. There are some motives/elements which are as follows. a. Love and affection: It is an important buying motive which includes the buyers to purchase the goods. Due to love and affection to the children, we buy toys, dress biscuits etc. A husband may buy saris and cosmetics for his wife due to the love and affection. b. Curiosity: Curiosity is the desire for new experience which motivates the people to buy the specific goods. Thus, to get the new experience, customers purchase the goods. c. Fashion: It is an important motive that can change the mind of the customers. Generally, customers try to copy particularly the movie stars, sportsmen and athletes etc. So, all the producers advertise their products with the help of these popular personalities. d. Pride and prestige: Due to the pride and prestige in the society, customers purchase expensive and luxuries goods in- order to maintain their status. They purchase toyota car, Karizma motorcycle, fifty-nine inch colour television etc. to get the high position in the society. e. Sex and Romance: Sex and romance is another important emotional buying motive that induces the customers to purchase the goods. Due to sex and romance, they purchase fancy dress, cosmetic items, perfumes, shaving lotions etc. f. Fear: People are generally afraid of losing their health, wealth and life. Thus, it motivates to purchase the goods such as insurance policy, hiring lockers in bank and membership of health club etc. These goods or services help them to avoid their fear. 2. Rational Buying Motives: Rational buying motives are those which are based on sound judgement. They purchase the goods through proper testing, comparing and observing the goods on the basis of price, quality, durability etc. This motive is important to the customers because it helps them to save the unnecessary cost. It includes the following motives. a. Economy: Under this motives, the customer prefer that products which are more economy or cheap in price. To get more profit and discount, customers purchase such goods. This element attract and encourages the customers to buy such goods in large quantities. b. Utility: Customers want to purchase that goods which have more or higher utility. Utility satisfies the wants of the customers. c. Comfort and convenience: Every people has the desire to live in comfort and convenient way as a result they get motivated to purchase such goods which provide comfort and convenience. Customers purchase T.V., DVD, motorcycle, washing machines, heater, cooler, sofa set etc. for their pleasure and comfort. d. Durability: It is another element of rational buying motive. Due to the durability of the products, customers are motivated to purchase the goods for example toyota car, pulsar motorcycle, sony TV etc are purchased due to their durability to use. e. Security: It is important to the people. People are not feeling secure from the floods, earthquakes, theft, docoits etc. in the society. So, the customers purchase the key lockers, open the bank A/c and keep the watchman etc to be secured. 121

Appendix B: Buying Motives 3. Patronage Buying Motive: When the customers purchase the goods or services on the basis of particular place, special discount, present price, decoration, behaviour and behaviour and other facilities are known as patronage buying motives. Following points are discussed under this motive. a. Service motive: Service is an important motive which inspires the customers to purchase the goods. Customers purchase the goods to get the services, such as credit facility, home delivery facility, free installation, free repair and maintenance services. b. Quality: Due to the quality of the goods, customers are motivated to purchase certain goods or services. If products assure the quality, the customers are even ready to pay the higher price of such goods. c. Location: Location also affects to purchase the goods. Customers prefer to buy those goods which are easily available near their home or locality. d. Store loyalty: Store loyalty is another important element which plays significant role in buying motive. We purchase different goods due to the loyalty of the store such as attractive appearances, trust in weight, quality, price etc. e. Friendliness behaviour: Friendliness behaviour of salesman also affects the customers to purchase the goods from the same suppliers which is also discussed under the patronage buying motives.

122

Appendix C: Range Plan

STYLE

SKETCH

COLS

RRP £

Cost

Margin Total Total achieved quantity Cost Total Retail 66.94% 100 £1,190.00 £3,600.00 66.94% 250 £2,975.00 £9,000.00 66.94% 250 £2,975.00 £9,000.00 66.94% 250 £2,975.00 £9,000.00 66.94% 150 £1,785.00 £5,400.00 66.94% 200 £2,380.00 £7,200.00

Total Margin 66.94% 66.94% 66.94% 66.94% 66.94% 66.94%

25 63 63 63 38 50

13 31 31 31 19 25

25 63 63 63 38 50

Milton Foundation

Porcelain Fawn Buttermilk Cameo Honey Mocha

£36.00 £36.00 £36.00 £36.00 £36.00 £36.00

£11.90 £11.90 £11.90 £11.90 £11.90 £11.90

Felicity Foundation

Porcelain Fawn Buttermilk Cameo Honey Mocha

£38.00 £38.00 £38.00 £38.00 £38.00 £38.00

£10.25 £10.25 £10.25 £10.25 £10.25 £10.25

73.03% 73.03% 73.03% 73.03% 73.03% 73.03%

275 275 275 275 275 275

£2,818.75 £2,818.75 £2,818.75 £2,818.75 £2,818.75 £2,818.75

£10,450.00 £10,450.00 £10,450.00 £10,450.00 £10,450.00 £10,450.00

73.03% 73.03% 73.03% 73.03% 73.03% 73.03%

69 69 69 69 69 69

34 34 34 34 34 34

69 69 69 69 69 69

Escott Foundation

Porcelain Fawn Buttermilk Cameo Honey Mocha

£36.00 £36.00 £36.00 £36.00 £36.00 £36.00

£11.90 £11.90 £11.90 £11.90 £11.90 £11.90

66.94% 66.94% 66.94% 66.94% 66.94% 66.94%

100 250 250 250 150 200

£1,190.00 £2,975.00 £2,975.00 £2,975.00 £1,785.00 £2,380.00

£3,600.00 £9,000.00 £9,000.00 £9,000.00 £5,400.00 £7,200.00

66.94% 66.94% 66.94% 66.94% 66.94% 66.94%

25 63 63 63 38 50

13 31 31 31 19 25

25 63 63 63 38 50

Walton Concealer

Porcelain Fawn Buttermilk Cameo Honey Mocha

£24.00 £24.00 £24.00 £24.00 £24.00 £24.00

£8.90 £8.90 £8.90 £8.90 £8.90 £8.90

62.92% 62.92% 62.92% 62.92% 62.92% 62.92%

200 200 200 200 200 200

£1,780.00 £1,780.00 £1,780.00 £1,780.00 £1,780.00 £1,780.00

£4,800.00 £4,800.00 £4,800.00 £4,800.00 £4,800.00 £4,800.00

62.92% 62.92% 62.92% 62.92% 62.92% 62.92%

50 50 50 50 50 50

25 25 25 25 25 25

50 50 50 50 50 50

Loittisham Pressed Powder

Porcelain Fawn Buttermilk Cameo Honey Mocha

£28.00 £28.00 £28.00 £28.00 £28.00 £28.00

£9.90 £9.90 £9.90 £9.90 £9.90 £9.90

64.64% 64.64% 64.64% 64.64% 64.64% 64.64%

300 300 300 300 300 300

£2,970.00 £2,970.00 £2,970.00 £2,970.00 £2,970.00 £2,970.00

£8,400.00 £8,400.00 £8,400.00 £8,400.00 £8,400.00 £8,400.00

64.64% 64.64% 64.64% 64.64% 64.64% 64.64%

75 75 75 75 75 75

38 38 38 38 38 38

75 75 75 75 75 75

Katherine Loose Powder

Porcelain Fawn Buttermilk Cameo Honey Mocha

£29.00 £29.00 £29.00 £29.00 £29.00 £29.00

£8.40 £8.40 £8.40 £8.40 £8.40 £8.40

71.03% 71.03% 71.03% 71.03% 71.03% 71.03%

300 300 300 300 300 300

£2,520.00 £2,520.00 £2,520.00 £2,520.00 £2,520.00 £2,520.00

£8,700.00 £8,700.00 £8,700.00 £8,700.00 £8,700.00 £8,700.00

71.03% 71.03% 71.03% 71.03% 71.03% 71.03%

75 75 75 75 75 75

38 38 38 38 38 38

75 75 75 75 75 75

Cordelia Cheek Powder

Mistyrose Peachpuff Lightcoral Lavenderblush Honeydew Burleywood

£26.00 £26.00 £26.00 £26.00 £26.00 £26.00

£8.60 £8.60 £8.60 £8.60 £8.60 £8.60

66.92% 66.92% 66.92% 66.92% 66.92% 66.92%

300 300 300 300 300 300

£2,580.00 £2,580.00 £2,580.00 £2,580.00 £2,580.00 £2,580.00

£7,800.00 £7,800.00 £7,800.00 £7,800.00 £7,800.00 £7,800.00

66.92% 66.92% 66.92% 66.92% 66.92% 66.92%

75 75 75 75 75 75

38 38 38 38 38 38

75 75 75 75 75 75

Bruton Bronze Powder

Sunkissed Golden Bronze

£29.00 £29.00 £29.00

£7.50 £7.50 £7.50

74.14% 74.14% 74.14%

400 400 400

£3,000.00 £3,000.00 £3,000.00

£11,600.00 £11,600.00 £11,600.00

74.14% 74.14% 74.14%

100 100 100

50 50 50

100 100 100

123

Appendix C: Range Plan

STYLE

SKETCH

COLOURS

Abbey Mascara

Barlake Mascara

Foxcote Quad Eyeshadow Palette

Louisa Single Eyeshadow Colour

Paddington Pencil Liner

Midnight

Actual Margin Total Total Cost achieved quantity Cost Total Retail £26.00 £6.00 76.92% 1,000 £6,000.00 £26,000.00

Walnut

£26.00

£6.00

76.92%

500

£3,000.00

£13,000.00

76.92%

125

Midnight

£26.00

£6.00

76.92%

1000

£6,000.00

£26,000.00

76.92%

250

125

250

Walnut

£26.00

£6.00

76.92%

500

£3,000.00

£13,000.00

76.92%

125

£32.00 £32.00 £32.00 £32.00

£10.00 £10.00 £10.00 £10.00

68.75% 68.75% 68.75% 68.75%

200 200 200 200

£2,000.00 £2,000.00 £2,000.00 £2,000.00

£6,400.00 £6,400.00 £6,400.00 £6,400.00

68.75% 68.75% 68.75% 68.75%

50 50 50 50

25 25 25 25

50 50 50 50

£22.00 £22.00 £22.00 £22.00 £22.00 £22.00 £22.00 £22.00 £22.00 £22.00 £22.00 £22.00 £18.00

£8.25 £8.25 £8.25 £8.25 £8.25 £8.25 £8.25 £8.25 £8.25 £8.25 £8.25 £8.25 £4.50

62.50% 62.50% 62.50% 62.50% 62.50% 62.50% 62.50% 62.50% 62.50% 62.50% 62.50% 62.50% 75.00%

100 100 100 100 100 100 100 100 100 100 100 100 600

£825.00 £825.00 £825.00 £825.00 £825.00 £825.00 £825.00 £825.00 £825.00 £825.00 £825.00 £825.00 £2,700.00

£2,200.00 £2,200.00 £2,200.00 £2,200.00 £2,200.00 £2,200.00 £2,200.00 £2,200.00 £2,200.00 £2,200.00 £2,200.00 £2,200.00 £10,800.00

62.50% 62.50% 62.50% 62.50% 62.50% 62.50% 62.50% 62.50% 62.50% 62.50% 62.50% 62.50% 75.00%

25 25 25 25 25 25 25 25 25 25 25 25 150

13 13 13 13 13 13 13 13 13 13 13 13 75

25 25 25 25 25 25 25 25 25 25 25 25 150

£18.00

£4.50

75.00%

400

£1,800.00

£7,200.00

75.00%

100

Midnight

£20.00

£6.90

65.50%

500

£3,450.00

£10,000.00

65.50%

125

Walnut

£20.00

£6.90

65.50%

300

£2,070.00

£6,000.00

65.50%

Ballerina Sea Storm Mystery Woodwork Iridescent White Powder Blue Bisque Old Lace Muted Stone Wheat Mint Dew Pistachio Blue Grass Twilight Firebrick Slate Grey Midnight Walnut

Oxford Liner

Hutton Brow Powder

Taunton Brow Pencil

RRP £

Total QUANTITIES FOR EACH STORE RATIO 2:1:1:2:2 BROMPTON ROAD WESTFIELD SELFRIDGES ECOMMERCE Margin NEW BOND STREET 76.92% 250 125 125 250 250

Moss

£28.00

£8.40

70.00%

250

£2,100.00

£7,000.00

70.00%

Conker

£28.00

£8.40

70.00%

250

£2,100.00

£7,000.00

70.00%

Bark

£28.00

£8.40

70.00%

250

£2,100.00

£7,000.00

70.00%

Moss

£19.00

£6.00

68.42%

150

£900.00

£2,850.00

68.42%

Conker Bark

£19.00 £19.00

£6.00 £6.00

68.42% 68.42%

250 200

£1,500.00 £1,200.00

£4,750.00 £3,800.00

68.42% 68.42%

63 50

31 25

63 50

124

Appendix C: Range Plan

STYLE Eloise Lip Gloss

SKETCH

COLOURS

RRP

Actual

Margin

Cost

achieved quantity Cost 73.91% 100 73.91% 100 73.91% 100 73.91% 100 73.91% 100 73.91% 100 73.91% 100 73.91% 100 73.91% 100 73.91% 100 73.91% 100 73.91% 100 66.40% 100 66.40% 100 66.40% 100 66.40% 100 66.40% 100 66.40% 100 66.40% 100 66.40% 100 66.40% 100 66.40% 100 66.40% 100 66.40% 100 73.61% 300 73.61% 300 73.61% 300 73.61% 300 500 500

£3,000.00 £3,000.00

£12,500.00 £12,500.00

76.00% 76.00%

125 125

63 63

125 125

63.48%

600

£5,040.00

£13,800.00

63.48%

150

£2,823.00 £882.80 69.93%

25,200

£203,412.50

£676,500.00 69.93%

4250

3150

6300

£6.00 £6.00 £6.00 £6.00 £6.00 £6.00 £6.00 £6.00 £6.00 £6.00 £6.00 £6.00 £8.40 £8.40 £8.40 £8.40 £8.40 £8.40 £8.40 £8.40 £8.40 £8.40 £8.40 £8.40 £4.75 £4.75 £4.75 £4.75

Sparkford Highlighter

Pearly Sunlight

£25.00 £25.00

£6.00 £6.00

76.00% 76.00%

Christon Primer Base

Crystal

£23.00

£8.40

TOTAL

Total BROMPTON ROAD WESTFIELD SELFRIDGES ECOMMERCE Margin NEW BOND STREET 73.91% 25 13 13 25 25 73.91% 25 13 13 25 25 73.91% 25 13 13 25 25 73.91% 25 13 13 25 25 73.91% 25 13 13 25 25 73.91% 25 13 13 25 25 73.91% 25 13 13 25 25 73.91% 25 13 13 25 25 73.91% 25 13 13 25 25 73.91% 25 13 13 25 25 73.91% 25 13 13 25 25 73.91% 25 13 13 25 25 66.40% 25 13 13 25 25 66.40% 25 13 13 25 25 66.40% 25 13 13 25 25 66.40% 25 13 13 25 25 66.40% 25 13 13 25 25 66.40% 25 13 13 25 25 66.40% 25 13 13 25 25 66.40% 25 13 13 25 25 66.40% 25 13 13 25 25 66.40% 25 13 13 25 25 66.40% 25 13 13 25 25 66.40% 25 13 13 25 25 73.61% 75 38 38 75 75 73.61% 75 38 38 75 75 73.61% 75 38 38 75 75 73.61% 75 38 38 75 75

£600.00 £600.00 £600.00 £600.00 £600.00 £600.00 £600.00 £600.00 £600.00 £600.00 £600.00 £600.00 £840.00 £840.00 £840.00 £840.00 £840.00 £840.00 £840.00 £840.00 £840.00 £840.00 £840.00 £840.00 £1,425.00 £1,425.00 £1,425.00 £1,425.00

£23.00 £23.00 £23.00 £23.00 £23.00 £23.00 £23.00 £23.00 £23.00 £23.00 £23.00 £23.00 £25.00 £25.00 £25.00 £25.00 £25.00 £25.00 £25.00 £25.00 £25.00 £25.00 £25.00 £25.00 £18.00 £18.00 £18.00 £18.00

Yarley Lip Liner

Total Total Retail £2,300.00 £2,300.00 £2,300.00 £2,300.00 £2,300.00 £2,300.00 £2,300.00 £2,300.00 £2,300.00 £2,300.00 £2,300.00 £2,300.00 £2,500.00 £2,500.00 £2,500.00 £2,500.00 £2,500.00 £2,500.00 £2,500.00 £2,500.00 £2,500.00 £2,500.00 £2,500.00 £2,500.00 £5,400.00 £5,400.00 £5,400.00 £5,400.00

Cappuccino Sugar Shimmer Watermelon Soft Serenade Charming Pink Orchid Good Earth Sierra Cotton Candy Barely Nude Champagne Timid Pink Cappuccino Sugar Shimmer Watermelon Soft Serenade Charming Pink Orchid Good Earth Sierra Cotton Candy Barely Nude Champagne Timid Pink Cappuccino Charming Pink Good Earth Champagne

Florence Lipstick

Total

125

Appendix D: Cash Flow

Cash Flow for Mulberry Cosmetics Jan

PR Advertising

Marketing

Variable Costs

Production

Fixed Costs

RECEIPTS. Sales Capital Investment (A) Total Income LESS PAYMENTS Overheads (rent, power, etc) Printing Stationary Phone / Internet salaries Accounts Research and Development Photography Samples Manufacturing Costs (Stock) Equipment (Computers etc) Licenses and Regulations Ad Campaign Brand Endorser Digital Materials PR Consultants Press Samples Press Packs Visual Merchandising Digital Campaign (B) Total cash payments. (C) NET CASHFLOW (A-B) (D) Opening bank balance. Closing bank balance. (D+C)

Feb

March

April

May

June

July

Aug

Sept

Oct

Nov

Dec

£56,375 £54,645 £111,020

£1,000 £100 £50 £150 £3,000 £500

£1,000 £100 £50 £150 £3,000 £0

£1,000 £100 £50 £150 £3,000 £500

£1,000 £100 £50 £150 £3,000 £0

£1,000 £100 £50 £150 £3,000 £500

£1,000 £100 £50 £150 £3,000 £0

£1,000 £100 £50 £150 £3,000 £500

£1,000 £100 £50 £150 £3,000 £0

£500 £2,000 £3,000 £16,951 £1,500 £500 £27,000 £20,000 £800 £1,500 £5,000 £2,000 £1,000 £500

£500 £0 £3,000 £16,951 £500 £500 £27,000 £20,000 £800 £1,500 £0 £2,000 £400 £500

£500 £0 £0 £16,951 £200 £500 £27,000 £20,000 £800 £1,500 £0 £2,000 £300 £500

£500 £1,000 £0 £16,951 £0 £500 £27,000 £20,000 £800 £1,500 £0 £2,000 £1,000 £500

£500 £0 £0 £16,951 £0 £500 £27,000 £20,000 £800 £1,500 £5,000 £2,000 £100 £500

£500 £0 £1,000 £16,951 £0 £500 £27,000 £20,000 £800 £1,500 £0 £2,000 £300 £500

£500 £0 £0 £16,951 £500 £500 £27,000 £20,000 £800 £1,500 £0 £2,000 £1,000 £500

£500 £0 £0 £16,951 £100 £500 £27,000 £20,000 £800 £1,500 £0 £2,000 £100 £500

£500 £1,000 £0 £16,951 £0 £500 £27,000 £20,000 £800 £1,500 £5,000 £2,000 £100 £500

£500 £0 £1,000 £16,951 £0 £500 £27,000 £20,000 £800 £1,500 £0 £2,000 £1,000 £500

£500 £0 £0 £16,951 £500 £500 £27,000 £20,000 £800 £1,500 £0 £2,000 £500 £500

£500 £0 £0 £16,951 £500 £500 £27,000 £20,000 £800 £1,500 £5,000 £2,000 £500 £500

£87,051 £23,969 £5,000 £28,969

£77,951 £33,069 £28,969 £62,038

£75,051 £35,969 £62,038 £98,007

£76,051 £34,969 £98,007 £132,976

£79,151 £31,869 £132,976 £164,845

126

£75,351 £76,051 £74,251 £80,151 £76,551 £75,051 £80,051 £35,669 £34,969 £36,769 £30,869 £34,469 £35,969 £30,969 £164,845 £200,514 £235,483 £272,252 £303,121 £337,590 £373,559 £200,514 £235,483 £272,252 £303,121 £337,590 £373,559 £404,528

MULBERRY COSMETICS 128