BEAUTY'&'GO' - mbacasecomp.com€¦ · Beauty$Retail$ Premium$food$ Premium$food$/$Cashier$ ......
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Transcript of BEAUTY'&'GO' - mbacasecomp.com€¦ · Beauty$Retail$ Premium$food$ Premium$food$/$Cashier$ ......
Agenda'
1. Problem$Statement$$2. Customer$analysis$3. RecommendaIon$$4. Market$analysis$5. ImplementaIon$6. KPI$7. Financial$analysis$8. Risk$$9. Conclusion$
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Problem'Statement'
! What$should$Beauty$and$Go$focus$on$in$the$future?$$
• Present$in$Spain$and$some$ciIes$of$Europe$$
• Online$channels$sIll$a$small$part$of$sales;$mass$merchandise$provides$low$margins$
• What$markets$should$B&G$prioriIes?$$
• What$distribuIon$channels$should$it$focus$on$?$$
• What$product,$pricing$and$markeIng$strategies$should$it$focus$on?$$
Current$SituaIon$ Challenges$
3$
Recommendation'
Market$Priority$
DistribuIon$Channel$
MarkeIng$and$pricing$strategies$
• Europe:(Leverage$on$exisIng$supply$chain$and$product$strength$$
• America:(UIlize$Natura$Bisse$presence$in$the$US$market$
• Segment$product$for$each$channel;$emphasis$on$health$and$beauty$retailers$
• Use$online$format$for$subscripIon$sales$
• ExperienIal$good;$campaign$based$approach$• Premium$pricing$linked$cosmeIc$pricing$$
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Market'Analysis'
Europe$$ America$ Asia$ Others*$
Regulatory$requirement$
Economic$
Brand$equity$
Customer$awareness$of$natural$products$
Supply$chain$network$
Priority( High( High( Medium(low( Low(
High$
Medium$
Low$
*$Others$include$ROW$
5$
Who'is'our'customer?''
Women$
• Women$in$the$age$of$20b60$years$$
• High$purchasing$power$• Urban$sensiIve$to$
appearance$$• Awareness$of$natural$
based$products$
• Metrosexual$man$in$the$age$group$of$20b40$
• High$purchasing$power$• SensiIve$to$appearance$• Awareness$of$natural$
product$$
Men$
Customer$base$
! Expand$the$definiIon$of$beauty$to$be$gender$neutral$$
6$
Implementation'1:'The'European'Market'
Product$Mix$
MarkeIng$Strategy$$
b Overarching$objecIve:$Maximizing$profitability$b Next(steps:(Decision$to$preblaunch$premium$lines$$
b Leverage$on$Amsterdam$flagship$store$(ExperienIal$good)$
b Next(steps:(Beauty$from$within$campaign$b Social$media$driven$approach$$
! Increment$of$product$mix$to$maximize$profit$opportuniIes$
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Implementation'1:'The'European'Market'
Rollout(Plan:(Holland((((((((((((((((((((((((((((((Portugal(((((((((((((((((((((((((((((((((((France((((((((((((((((((((((((((((((((((((((((((((((Italy(
TradiIonal$ Upgraded$
Spa,$Gym$&$Hotels$
Shots$
Mass$Market$Retailers$
Beauty$Retail$
Premium$food$/$Cashier$Premium$food$
Online$(Bundled$subscripIon)$
8$
Implementation'1:'The'United'States'Market'
Rollout(Plan:(New(York((((((((((((((((((((((((((((((Los(Angeles(((((((((((((((((((((((((((((((San(Francisco((((((((((((((Chicago(((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((
TradiIonal$ Upgraded$
Mass$Market$Retailers$
Shots$
Department$Stores$(Macys,$Nordstrom)$$
Premium$Food$
Online$(Bundled$subscripIon)$
Mass$Market$Retailers$
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Implementation'2:'The'United'States'Market'
Product$Mix$
MarkeIng$Strategy$$
b Overarching$objecIve:$Create$market$presence$b UIlize$the$success$of$JV$partner$Natura$Bisse$$b Next(steps:(Partner$with$top$probbeauty$mediums$$$$$$Food$Network,$Oprah$Show,$Marathons,$Fashion$$$$$
$Shows$
b Next(steps:(Beauty$from$within$campaign$b Social$media$driven$approach$b Customer$segmentaIon$b Ex:$Nantucket,$etc.$$
! Increment$of$product$mix$to$maximize$profit$opportuniIes$
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Implementation'3:'Asia'
Hong$Kong$and$Vietnam$
• Next(steps:(Direct$Asian$importers$to$focus$on$high$margin$products$
• Shots$sold$in$luxury$dept$stores$
• Incremental$revenue$opportuniIes$$
• Seek$out$partners$in$beauty$percepIon$market$
Shanghai$and$Malaysiab$Cluster$beauty$markets$
Focus$on$luxury$supermarkets,$premium$airlines$retail$stores$(Singapore$Airlines$Kris$store)$$
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KPI'
Europe$
US$
Asia$
• Sales$figure$• Number$of$stores/brand$
• Market$volumes$in$mass$market$,$departmental$stores$and$premium$food$
• Online$sales$volume$• Geographical$sales$numbers$
$
12$
Risks'
Type Detail Likelihood Impact Mitigation
Scale What)if)online)sales)are)too)low Medium Medium Offer)packaged)deals)&)DiscountsPR)&)Communication
US)Positioning What)if)perceived)too)expensive Low Medium Refocus)on)high)volume)channelto)decrease)price
Brand)Image What)if)going)online)reduces)Brand)Image Low Low Endorsement)at)Haute)Couture
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Financials''
MAIN$ASUMPTIONS$AND$TAKEAWAYS$
• IRR$27%$• Breakeven$4$years$
• Sales$x3$in$5$years$• Improvement$of$profitability$due$to$
channel$mix$• Holland$launch:$PR$campaign$500K$EUR$
+$PromoIon$effort$100K$EUR$$$
14$
Financials''
K"EUR 2016 2017 2018 2019 2020Sales 500 600 1000 1200 1500Gross.margin 250 350 580 700 900Holland.launch 600Online.strategy 800 400 100 100Annual-Net-Income 5350 5450 180 600 800Cumulative 5350 5800 5620 520 780
50%$ 60%$
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Conclusion'
Market$Priority$
DistribuIon$Channel$
MarkeIng$and$pricing$strategies$
• Europe:(Leverage$on$exisIng$supply$chain$and$product$strength$$
• America:(UIlize$Natura$Bisse$presence$in$the$US$market$
• Segment$product$for$each$channel;$emphasis$on$health$and$beauty$retailers$
• Use$online$format$for$subscripIon$sales$
• ExperienIal$good;$campaign$based$approach$• Premium$pricing$linked$cosmeIc$pricing$$
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