BRAND EXTENSION
NEW MAKEUP LINE
TABLE OF CONTENTS 4-5 SUMMARY 6-7 OVERVIEW OF THE BRAND 8-9 INTRODUCTION 10-11 MARKETING OVERVIEW 12-15 COMPETITORS 16-17 TARGET MARKET OF KATE SPADE 18-19 PERSONA 20-21 COSMETICS MARKET 22-23 LINE LIST 24-25 ASSORTMENT PLAN 26-27 KATE SPADE MAKEUP 28-34 E-COMMERCE MOCK UPS 42 PROMOTIONAL COST 36 SOCIAL MEDIA MOCK UPS 43 OPERATIONAL COST 37 PACKAGING MOCK UPS 44-45 PROFIT STATEMENT 38-39 FLAGSHIP FLOOR PLAN 46 CONCLUSION 40-41 3D RENDERS 47 SOURCES
SUMMARY
Kate Spade will launched a Make-up line that will consist in an Eyeshadow Palette, Foundation, Setting Powder and a Lip Gloss. The products will be 100% vegan and cruelty free. It is going to be an accessible makeup line. But always keeping the luxury Kate Spade aesthetic by using the best ingredients and fancy packaging. The Make-up line will evoke happiness by doing their designs and packaging very sparkly and by using colorful palettes. Kate Spade will have an specific budget to launched their Make-up line in their flagship store which would be the one located in New York. In their e-commerce platform and in selected stores. Since Kate Spade has been a 100% girly brand, customers will believe in their new product line. The brand will know how to get into the necessities of each women by satisfying them with their new products.
OVERVIEW OF THE BRAND
Kate Spade, a designer best known for her simple, colorful handbags, which became favored accessories of professional women in the 1990s.
n , s . Kate Spade, was an American fashion designer and businesswoman. She was the founder and former co-owner of the designer brand Kate Spade New York. After working in the accessories department at the fashion magazine Mademoiselle, Brosnahan and her husband, Andy Spade, identified a market for quality stylish handbags, and founded Kate Spade New York in 1993. The handbags Spade designed and produced quickly found popularity, owing to their sophistication and affordability, and have been described as a symbol of New York City in the 1990s. Neiman Marcus Group purchased 56 percent of the Kate Spade brand in 1999 and the remaining 44 percent in 2006. The Group sold the label in 2006 to Liz Claiborne Inc., for $124 million; it was later renamed Fifth & Pacific. The company was purchased by Coach, Inc. in May 2017; both Coach and Kate Spade are part of Tapestry, Inc It is said that the right Kate Spade audience are women getting into the 30s. Are trend conscious, independent and financially stable. They gravitate toward color and prints and prefer the unusual to make a statement with fashion.
INTRODUCTION THE MISSION OF THIS BRAND EXTENSION IS TO INCREASE THE BRAND IMAGE BY SATISFYING WOMEN WITH AN ACCESIBLE LUXURY MAKE UP LINE The positive thing about this brand extension is that Kate Spade is a 100% girly brand that features different product lines. Since their target market are completely female it would be a great idea to add a makeup line into the brand since the beauty industry is getting very essential for women. Kate Spade will launch a makeup line that will contain five products; eyeshadow palette, lip gloss, foundation and a setting powder. Basically, the idea of this project is to show how the brand would look like with the addition of this new product line. The main reason of using the beauty industry for this brand extension is because is something that is getting very popular. Makeup is used as a beauty aid to support build up the self-esteem and confidence of a person. The importance of cosmetics has increased as many people want to stay young and attractive. For most women, makeup is an important tool in their everyday beauty arsenal.
Products Kate Spade will launched a colorful and sparkly Make-up line that will contain; Eyeshadow Palette Foundation Setting Powder Lip Gloss Full Kit Promotions They will advertised their makeup line through their own Instagram account. They will do Instagram Sponsored Posts, also known as “Influencer Marketing� which is a form of promoting a brand or product through popular celebrities or influential people. Place Customer will be able to find the makeup line in their flagship store which would be the one located in New York, 135 5th Ave New York, NY 10010. In their e-commerce platform and in selected stores. Price It is going to be an accessible makeup line. But always keeping the luxury Kate Spade aesthetic by using the best ingredients and fancy packaging.
MARKETING OVERVIEW
COMPETITO
TORS ORS
CO
JEFFREE STAR
100% vegan and cruelty free.
CHARLOTTE TILBURY
100% vegan and cruelty free.
OMPETITORS
Girly and colorful website. Similar aesthetic and dominant color. Bold colors in the products.
Light pink as the domimant color.
Average price point. $18.00 - $50.00
Average price point. $20.00 - $70.00
TA O DEMOGRAPHICS Gender: Female Age Range: Between 25 and 45 Ethnicity: Mostly White and Hispanic origin Household income: $70.000 + Maritul Status: Mostly married with kids Shopping Trips and Purchases: 16 - 20 minutes average Average Expenditure Per Visit: $100 - $200 Frequency of Visit (6 months): 7 - 12 times
PSYCHOGRAPHICS Professionals. Women that shop at Kate Spade are viewed as modern and sophisticated. People who enjoy going out to fine restaurants, movies, concerts and members of country clubs. They are extremely loyal to the brand. Image is extremely important to them and to their fashion image, therefore, they buy for the image of exclusiveness.
ARGET MARKET OF KATE SPADE
PERSONA
Name: Amanda Miller New York, USA Age: 29 years old Full time Job: Sales Manager at Microsoft Incomes: $90.000 anually Personality: - Independent women and financially stable. - Fashionable girl that likes to be presentable in all occasions. - Makeup lover. - For her, colors, are the representation of happiness on earth. - In her free time she likes to go to Pietro Nolita which is an Italian place located in Ny. She gets identifies with the place, because everything outside and inside of the restaurant is pink. -Favorite color, pink. -For her, the color pink represents her and generates motivation in her life.
PRIMARY RESEARCH
COSMETIC
2018
Younger consumers, those between ages 18 and 24, are one of the driving forces behind the beauty market’s growth, according to Fashionbi’s new “Beauty Market Trend” report. found that a significant portion of Western consumers condemn the testing of beauty products on animals and will reject brands that do so. A report from Perfect 365,
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https://www.linkedin.com/pulse/importance-cosmetics-today-beyond-beauty-asean-bangkok/
https://www.scienceofpeople.com/makeup/
estimated 44 percent of American women do not like to leave their homes without makeup on. Research shows there are two primary reasons why women wear makeup:” “Camouflage – Women who are anxious and insecure tend to use makeup to appear less noticeable.” “Seduction – Women who want to be noticeably more attractive tend to use makeup to be more confident, sociable and assertive.” “Those 44 percent of women believe that if they show their natural, untouched face, they won’t be able to accomplish either of those things, and they will be treated differently. It turns out there is some science to back up the fears driving them to wear makeup every day.”
https://www.luxurysociety.com/en/articles/2018/09/beauty-industry-booming-evolving-fashionbi/
“The global beauty market is growing and is on pace to reach a value of more than $800 billion in the next five years, propelled by consumers' appetites for innovative skincare and fun, new products.” by Sarah Ramirez | Sept. 26,
“Cosmetics are used to enhance your appearance. Mak many centuries. The first known people who used cosmeti ty were the Egyptians. Makeup those days was just simp material for the body. Now-a-days makeup plays an im and women. That's right, even men have become more b concerned about their looks. Cosmetics can be produce poallergenic form to meet the demands of users. Makeup to help build up the self esteem and confidence of an in of cosmetics has increased as many people want to sta
“The Importance of Cosmetics Today Cosmetics help to e and make us feel more confident. With more cosmetics ever before, it becomes obvious to us that they play a grea Report from Beyond Beauty ASEAN Bangkok.
CS MARKET
ding to Susazana Rose, July 18 2019.
e Are Better Alternatives To Animal Testing” me companies try to tell us that animal testing es a purpose: tests are being performed on als to make sure that ingredients and products afe enough for humans. The truth is there are natives to animal testing for ingredient safety. For mple, many companies choose to use in vitro testwhich has many advantages over animal testing. e are also cultured cell tissues as well as computer els. nce favors these alternatives over animal testing ause they’re more conclusive, but animal testing he advantage of being low-cost. Animals are used because they’re more “affordable”, which is mely unethical.”
ww.crueltyfreekitty.com/cruelty-free-101/whyruelty-free/
enhance our appearance on the market today than at role in our everyday life.”
SECONDARY RESEARCH
“It's perhaps a logical evolution for the creative minds behind designer fashion to want to get into makeup — but in today's market, those who do so most successfully are the ones who have natural ingredients to their advantage and figured out how to reach consumers where they discover beauty.” by Annamarie Houlis| Aug 9, 2018
“I think consumers, especially millennials and Gen Zs, are looking to make purchases that are in line with their personal values,” such as the type of ingredients that the products contain, said Dr. Gross, whose patients regularly ask about vegan and cruelty-free products. “It’s driving a big change in the industry.” by By Andrea Cheng “The future of the beauty industry is vegan and not animal-tested,” Ms. Guillermo said. “Not every company has realized this yet, but a lot of them have, and those are the ones that are going to get ahead and stay in business. We’re in discussions with enough of them to know that this is, without question, the trend.” by By Andrea Cheng
https://www.nytimes.com/2019/02/26/style/ why-you-should-care-about-vegan-beauty.html
keup has been around for ics to enhance their beauple eye coloring or some mportant role for both men beauty conscious and are ed in the organic and hyp is used as a beauty aid ndividual. The importance ay young and attractive.”
https://fashionista. com/2018/08/designer-beauty-brands-color-cosmetics-trend
LINE
1
2 4
3
LIST 1 2 3 4 5
55
EYESHADOW PALETTE COST: $13.00 RETAIL: $45.00 LIP GLOSS COST: $5.00 RETAIL: $18.00 FOUNDATION COST: $8.00 RETAIL: $30.00 SETTING POWDER COST: $7.00 RETAIL: $25.00 FULL KIT COST: $33.00 RETAIL: $100.00
ASSORTMENT PLA
AN
KATE SPADE MAKE
2
1
3
EUP
4
5
new makeup line
E-COMMERCE
SOCIAL MEDIA
PACKAGING
FLAGSHIP FLOOR
E 20
Shoes
Accessories
Accessories
Bags
Watches
Check-out
Bags Storage
Shoes
Fitting Rooms
Bags
R PLAN
0th St
s
Bags Clothing
Clothing
Make Up Bags
Bags
Bags Bags
Clothing
5th Ave
E 20th St
PROMOTIONAL CO INSTAGRAM :
- Graphic Designer : $1,200.00 - Influencer : $105,000.00 ( 4 posts )
WEBSITE :
- Graphic Designer : $5,000.00
TOTAL PROMOTIONAL COST = 111,200.00
OP OP
OST
CONSTRUCTION AND DESIGN OF FLOOR FIXTURE : $7,800.00 STAND DECOR : $3,000.00 HR STAFF : $2,800.00 (6 weeks) TECHNOLOGY FEATURES : $4,000.00
TOTAL OPERATIONAL COST = $17,600.00
PERATIONAL PERATIONAL COST COST
PROFIT STATEMENT TOTAL REVENUE : $2,480,000.00 TOTAL OPERATIONAL COST : $11,200.00 TOTAL PROMOTIONAL COST : $17,600.00 TOTAL COGS: $744,000.00 TOTAL PROFIT : $1,707,200.00
https://www.luxurysoc
https://www.scienceofp
https://fashionista.com
https://www.nytimes.c
https://www.cnbc.com
https://www.thetrends
I believe the Make-up line by Kate Spade will have a bright and long future ahead. This brand extension will let Kate Spade receives positive annual revenues. The advantage of this brand extension is that this will be the beginning of Kate Spade in the Beauty industry. They will use this launching as a base to start a more varied and large collection. And so being able to be among the best makeup brands in the world. The connection that this project has with my career is that in my 3.5 years at SCAD I’ve learned different ways on how we can take different brands into an upper level. It is all about studying a company, looking for their weaknesses, find facts that are missing in the brand, and lastly come up with creative and possible innovations.
CONCLUSION
SOURCES
ciety.com/en/articles/2018/09/beauty-industry-booming-evolving-fashionbi/
people.com/makeup/
m/2018/08/designer-beauty-brands-color-cosmetics-trend
com/2019/02/26/style/why-you-should-care-about-vegan-beauty.html
m/2018/06/09/kate-spades-legacy-a-new-style-for-the-quintessential-american-woman.html
spotter.net/best-makeup-brands/