Strategy 2
Transcription
Strategy 2
A MEDIA PLAN FOR bareMinerals By: Brielle Adler, Alyssa Brideweser, Devan Lombardi, Erin Peretti, Tara Waldman Table of Contents Executive Summary............................................................................2 Situation Analysis................................................................................3 Creative Strategy...............................................................................18 Creative Execution............................................................................19 Media Objective and Strategies.........................................................21 Media Integration...............................................................................23 Media Flowchart................................................................................25 References........................................................................................26 Appendix...........................................................................................27 [1] Executive Summary Bare Escentuals Inc. is a company that was created in 1976 in Los Gatos, California. In 1995, Executive Chairman, Leslie Blodgett, launched the pioneering line of bareMineral products, which now generates most of Bare Escentual’s revenue. bareMinerals is also the number one cosmetic product sold on QVC, due to its natural minerals composition designed to enhance the skin. Today, the brand is recognized as one of the most popular mineral-based makeups. cally young adults and professionals who are always on the go. This demograhic is known to be concerned with complexion, and tend to use makeup products most frequently. We are striving to give these women a dependable and affordable cosmetic that will ultimately better their skin. Our strategy is to inform our target audience that bareMinerals will provide them with a beautiful and healthy complexion. Our campaign will seek to produce behavioral changes in our consumers by proving that bareMinerals is the best cosmetic brand for women to feel the market as being one of the most trusted all natural cosmetic, without any harmful chemicals. Not only does [2] overall complexion, as well. months of the year and not advertising for the remaining three months. Our advertising will reach its optimal frequency and reach during our campaign launch in March and again during the holiday season of Nobecause it minimizes advertising spending and promotes our product during the highest shopping periods throughout the year. Our campaign will consist of print advertisements in magazines and outdoor advertisements, such as billboards and transit ads. These mediums most effectively reach our target audience. Women ages 18 to 34 are the most frequent magazine readers, and have many opportunities to see the billboard and transit ads while driving to work and running errands. Our campaign aims to ic in order to increase brand loyalty with our customers. Situation Analysis Company and Brand Background Bare Escentuals Inc. was created to empower women. It is a company that is established on feelgood about her own skin. The Bare Escentuals community was developed in 1976 in Los Gatos, California (bareescentuals.com). By forming personal relationships with it’s customers, the company was able to grow and now runs over 300 privately owned boutiques and retail contracts with various department stores and home television networks. In 1995, Executive Chairman of Bare Escentuals, Leslie Blodgett, launched the pioneering line of bareMinerals products (bareescentuals.com), which was created using 100% pure minerals. The brand now generates most of the company’s revenue, accounting for 95.8% of net sales. By 2009 the company earned $557 million in revenue and $98 million in net income (wikinvest.com, 2011). [3] In 2001, bareMinerals became the #1 selling brand on QVC, and continues to be the number one cosmetic product sold on that network. (bareescentuals.com). bareMinerals has continued to grow and has since won various awards. The brand name represents the entity of the product, with each specialized mineral composite bearing one-of-a-kind image that feeds on the public’s desire of having makeup and healthy skin all in one. The product also appeals to consumers in ranging income levels, with products pricing from twenty to over a hundred dollars. Situation Analysis What separates bareMinerals from all other makeup brands are it’s pure ingredients. Instead of containing harsh chemicals, it is created from naturally derived minerals, making it effective and unique. With its ideal mix of makeup and skincare, the brand vows that the makeup is “so pure you can sleep in it.” bareMinerals makeup is designed to enhance skin from the outside in (affecting surface layers of the skin). The product has also been tested to cover rosacea and acne. All mineral formulas work in harmony to improve complexion. Because each mineral is carefully selected, the product is sure to nourish, energize and renew the skin. Because the brand is known for not only enhancing beauty, but for being good for the skin as well, the product contains ingredients to do so. bareMinerals contains sun protecting elements such as a broad-spectrum of UVA/UVB sun protection. This extra feature earned the brand the Original SPF 15 Foundation Award (bareescentuals.com). bareM- [4] inerals also contains cell-renewing power, as well, using an Active Soil complex ingredient in their products. This blend of potent macro and micro minerals is used to increase cell turnover, and improve luminosity. It is also formulated to help skin defend against environmental stress. While most products clog pores and result in acne, bareMinerals works with one’s skin to refurbish and renew it. Situation Analysis Competitive Analysis Like bareMinerals, Sheer Cover is a mineral powder brand, as well. It offers similar products as age deals. Sheer Cover targets the same demographic as bareMinerals, appealing to women trying to work within their budgets. Sheer cover markets their products through a variety of different outlets, including online, magazines, and “as-seen-on-TV” sections of certain drug stores. However, the product is mostly endorsed through TV infomericals, and is not available for purchase retail stores. From January 2012 to December 2012, the total dollars spent on foundation powder was $36,100; of which all was spent on US-International Displays. The total dollars spent on multi-face makeup was $5,100; all spent on US International displays. [5] Mary Kay operates using multi-level marketing strategies, including in-person and online advertising. They also utilize networking strategies, like event hosting, to promote their products and create brand awareness. Unlike bareMinerals, Mary Kay does not rely on placing their product in high-end beauty retailers. Instead, they depend on wordof-mouth endorsments to promote their products. By using personal sales techniques, Mary Kay is able to create intimate relationships with their customers, building brand loyalty. Unlike many other companies, Mary Kay is privately owned so do not have to release their sales Situation Analysis Mary Kay claims annual sales of roughly $3,000,000,000. From January 2012 to December 2012, the total dollars spent on general promotions of cosmetic and beauty aids was $384,400; of which $314,100 was spent on magazines, $1,500 on newspapers, and $32,800 on US-International display ads. The total dollars spent on multi-cosmetics was $4,777,000; of which $347,000 was network TV, $576,600 was SLN TV, $161,200 was spot TV, $3,671,200 on magazines, $7,400 on newspapers, and $13,500 on US-International display ads. Cover Girl offers mineral powders at an affordable price. Their marketing strategies include endorsements by celebrities, such as Ellen DeGeneres, Pat McGrath, and Queen Latifah. They also utilize national advertising via TV, magazines, and other well known mediums. Cover Girl is available at drug stores and discount stores. Similar to bareM- [6] inerals, Cover Girl appeals to the working class of women. Proctor and Gamble, which owns the Cover Girl brand, claimed a net sales of $29,500,000,000 in their 2012 Annual Report. 24% of those sales came from beauty products like Cover Girl. From January 2012 to December 2012, Cover girl spent $37,896,900 total dollars on multi cosmetics, of which $2,515,200 was spent on spot TV, $1,376,800 on SLN TV, $2,065,200 on cable TV, $649,900 on syndication, $307,100 on spot TV, $27,589,300 on magazines, $2,116,200 on Sunday Magazines, $393,500 on Hispanic magazines, $883,800 on US-International display ads. The total dollars spent on general promotions of cosmetics and beauty aids was $935,400 of which $100 was spent on cable TV, $100 was spent on spot TV, $288,900 was spent on magazines, and $646,300 was spent on US-International display ads. Situation Analysis Estee Lauder makes up 19.3% of the total makeup market. Its marketing strategies rely on brand loyalty and word-of-mouth promotions. Although their products contain some natural ingredients, they do not heavily advertise their products as being all-natural the way that bareMinerals does. Estee Lauder has over 30,000 points of sale, including upscale department stores, specialty retailers, upscale perfumeries and pharmacies, and prestigious salons and spas. The company also operates freestanding retail stores and spas apart from selling products through their own websites, stores and duty free shops, and some other self-select outlets. Within the company, Estee Lauder owns their self-named Estee Lauder line, as well as a few other high end cosmetic lines, MAC, Bobbi Brown, and Clinique. [7] Although MAC appeals to consumers with a higher budget, it is a competitor of bareMinerals because it offers an entire line of mineral products. The brand has grown through word-of-mouth endorsements by make up artists and photographers. Bobbi Brown also offers an entire line of mineral foundation, including some with SPF 15. Clinique is one of the closest competitors to bareMinerals. because it markets themselves solely as being all-natural. The brand offers an entire line of mineral powders and foundations, promoting their produts as “allergy tested, 100% fragrance free.” Situation Analysis In their 2012 Annual Report, Estee Lauder claimed a net sales of $9,700,000,000. From January 2012 to December 2012, their total dollars spent on general promotions of cosmetic and beauty aids was $52,800, all of which was spent on US-International display ads. The total dollars spent on multi-cosmetics was $95,400, of which $11,200 was spent on syndication, $6,300 on spot TV, $3,600 on US-International Display ads, and $74,400 on outdoor ads. Revlon offers a line similar to bareMinerals powders called “Color Stay Aqua Mineral Foundation.” Instead of using separate brand names for each product, Revlon uses their universal company name for all their products, creating strong brand loyalty and familiarity amongst their entire line. Similar to Cover Girl, Revlon’s makeup is affordable and sold mostly in drug stores. In Revlon’s 2011 Annual Report, they claimed a net sales of $13,814,000,000, and a net income of $53,000,000. From January 2012 to December [8] 2012, Revlon spent $3,012,200 total dollars on multi-cosmetics, all of which was spent on magazine ads. Their professional multi-cosmetics line spent $8,000 total dollars, all of which were outdoor advertisements. Creative History of Brand bareMinerals is a brand based on a feeling. It promises its customers a product that is both top als separates itself by selling makeup that offers more than just beauty. Leslie Blodgett, the visionary creator of bareMinerals, shares on the brands website how bareMinerals originated. She states, “We started the idea that makeup could actually be considered skincare, and we got people talking.” This idea turned into a campaign, separating bareMinerals from competitive brands. Their current campaign, “Be a Force of Beauty”, features women who inspire us to become more. This campaign creates an emotional Situation Analysis connection with its customers by showing an interest in what bareMinerals can do for them past skincare. Under this campaign are several slosizes the distinction between simply being pretty and possessing true beauty. For the “Be a Force of Beauty” campaign, bareMinerals held a blind casting call for women ages 20 to 60. The representatives were not permitted to see the women who applied until after they were selected. The women had to complete a questionnaire about who they were and what they were like. As to not affect their answers, the women were not told by their agents that the company was bareMinerals. After multiple ed. The goal of the campaign was to seek women who embodied qualities like inspiration, humility, and humor. The campaign desired “something that was much more personality-driven. The goal was to capture women who had compelling and interesting stories to tell.” Selecting women based on empowerment, rather than physical appearance, creates a genuine and unique image for the bareMinerals brand. [9] bareMinerals differentiates itself in the market by not using harsh chemicals. The second slogan bareMinerals uses is “Makeup so pure you can sleep in it.” This shows how women can sleep in their makeup without having to worry about irritating their skin, proving that bareMinerals will provide nourishment for women’s complexions. Situation Analysis Target Audience Geography Questions Our target audience for this year-long campaign is and professionals who are always on-the-go. Our product will give these women a reliable and affordable cosmetic. We will execute our campaign through the use outdoor advertisements, such as billboards and transit ads. We determined our target markets by evaluating the index numbers in major U.S. cities. The areas with the highest index numbers have the highest potential for sales and will be heavily targeted in our campaign. These markets are the Greater Los Angeles region(147), East Central region(122), including Chicago, Indianapolis, and Columbus, the Mid-Atlantic region(118), including Richmond, Charleston, and Nashville, the New York Metro area(109), the North East(109), including Boston and Philadelnix, Los Angeles, Portland, and Seattle. [10] Bare Escentuals Inc. It is the most popular line among consumers and the number one product sold on QVC. bareMinerals has been the leader in the company’s expansion, and has led to substaning January 3rd, 2010. The bareMinerals foundation products compromised roughly 43.3% of net Inc., 2009 Annual Report). Any individual interested in buying directly from the company can search through the Bare Escentuals website. This helps provide shoppers with the security of receiving a high quality product and not an imitation. Shoppers who purchase online can also be eligible for special discounts and promotions that are not offered in stores. This in particular can encourage shoppers to want to visit the website in order to get the most out of their buying experience. If a consumer chooses not to Situation Analysis purchase via web, bareMinerals products can also be purchased in select geographic regions at Bare Escentuals stores. Purchasing within a store gives consumers the advantage of trying on products before actually buying them, as well as receiving various insight from trained beauty professionals. bareMinerals utilizes a distinctive marketing strategy and a multi-channel distribution model. This includes traditional retail distribution channels, such as premium wholesale, including Sephora, Ulta, and select department stores, spas and salons, and company-owned boutiques. The company also operates directly to consumer distribution channels, including home shopping television on QVC, infomercials, and online shopping. In order to increase brand awareness, loyalty, market share, and reach favorable operating margins, the company sells products internationally as well. Success comes from educating consumers about ing close personal relations with said consumers. The company’s domestic points of distribution included roughly 868 retail locations, 123 open com- [11] pany-owned boutiques, and 3 outlet stores as of January 3rd, 2010. As shown below, the target markets in the United States are the Greater Los Angeles region(147), the East Central region (122), the Mid-Atlantic region(118), the New York Metro area(109), the Situation Analysis Timing and Purchase Cycles bareMinerals is the foundation that started the Mineral Makeup Revolution. Bare Escentuals opened have been a pioneer in the cosmetic industry ever since. Leslie Blodgett joined Bare Escentuals as CEO in 1994. In 1995, she launched bareMinerals and by 1999, 10 percent of $25 million in revenues came through QVC broadcasts and Bare Escenof bareMinerals, by 2001 it was already the number one selling brand on the television shopping channel, QVC. Now, the product line is also available at many department stores, makeup stores, as well as online. bareMinerals has been successful through marketing themselves as a completely natural and preservative-free cosmetic brand. erals, she did not think they were going to make it. She spent many late nights watching women selling jewelry on QVC before it dawned on her that she could do that, too. Leslie went on air on August 30th, 1977, and that day they sold $45,000 [12] worth of product. Women liked the products, and them to locate where to purchase it. Soon after, bareMinerals focus turned to distribution. By the mid-2000’s, the company started growing so fast At this time, they hired Myles McCormick as their Escentuals, Inc. 2009 Annual Report, the company believes their overall business is generally not ever, the company has indeed experienced limited seasonality in their specialty beauty retail and company-owned boutique channels, resulting from an increased demand of products during the holiday season. Consumers that wear makeup generally do so all year long, explaining why the company does not see many seasonal patterns. Nevertheless, it is evident that the holiday season is a time where consumers spend more, based on the trend of high product demand during these months. Situation Analysis Questions About the Media Mix ed in 2011. The campaign cost the company about $20 million dollars, and focused around the slogan “Be a Force of Beauty.” One of the actresses from the campaign shared, “Pretty is what you are, while beauty is what you do with it.” Before paign, they relied heavily on marketing to all-income consumers through infomercials. They have a contract agreement with QVC, a leading international shopping channel with over 50 million customers. The company, however, channels to lower economic level consumers who are more susceptible to economic downturns, which slightly altered bareMinerals target audience. Through the use of the infomercials, consumers can receive all the information about these skin care cosmetics and witness the magic of the products for themselves. Today, bareMinerals remains the number one cosmetic product sold on QVC. bareMinerals has also relied on other various distribution channels, company-owned boutiques, spas and salons, and online shopping for distribution and brand aware- [13] for bareMinerals, announced that the company realized that there was an audience not reached through its boutiques and use of home shopping networks like QVC. BareMinerals hired an advertising agency, TBWA/Chiat/Day Los Angeles, part of TBWA Worldwide and the Omnicom Group, ing in print, television, and digital ads. Situation Analysis Since the campaign release in 2011, Bare Minerals has run print ads in magazines such as Allure, Elle, Health Glamour, Lucky, and Self. They have also regulated 15 to 30 second television spots on cable channels such as the CW, ABC, MTV, Bravo, and Oxygen. Ads have appeared on Andriods, iPhones, and other smartphones, as well as search ads on Google, Yahoo, and Bing websites. Bare Minerals has also reached out through social media by creating a Facebook application called “Share the Force.” It allows users to post messages on a friend’s page saying the friend is a force of beauty. Those who use the application are also invited to a complementary “make-under” at one of bareMinerals’ boutiques. Their mobile site also allows users to view videos and learn more about the products. [14] Within the last year, bareMinerals has spent the most on advertising through their infomercial (most frequently used medium) on cable and network television with a total of $14,283,600 spent on cable TV and $9,108,600 on network TV. These two costs add up to a total of $23,392,200 spent on infomercials altogether, accounting for 67.1% of their total advertising budget of $34,866,400 in the last year. The next most frequently used medium was magazine ads, with a total spending of $7,950,600, followed by $2,663,500 spent publicizing on the internet and social media sites. bareMinerals recently introduced spot commercials with their new campaign totaling $546,400 in the past year, tailed by national newspaper promotion costing $142,900. The lesat used medium was radio broadcasting, costing only $170,800, less than 0.5% of the total advertising money bareMinerals dissipated within the last year. Situation Analysis bareMinerals’ messages are short and sweet, but represent a major issue present in the advertising world today. In today’s society, young women are ing skin all over the media, creating the impression that this is what one should look like. In their previous campaign, “Be a Force of Beauty”, bareMinerals uses real women who were chosen by their personality, not by their looks, to be featured in their advertisements. Unlike most makeup companies that use sex appeal and unrealistically thin models in their advertisements, bareMinerals is expressing that what is on the inside really matters. The infomercials are usually about 30 minutes in length, informing the customers about the health ucts, while demonstrating step-by-step how to use them. Not only do the infomercials and shorter-run commercials focus on communicating with the customers, but allows consumer’s to witness the product’s success, as well. bareMinerals ensures that their customers are completely aware of the [15] products before purchasing them, often offering beauty ambassador events where bareMineral beauty consultants conduct free “make-unders” to clients. bareMinerals’ advertisements and infomercials were created to not only inform consumers, but to emotionally transform them, as well. Customers have the opportunity to hear stories from women who have personally used bareMinerals from both infomercials and website blogs. The brand emotionally connects their customers by encouraging them they can be beautiful in their own skin. Situation Analysis SWOT Analysis Strengths One of bareMinerals’ strengths is the use of distinctive marketing strategies and a multi-channel distribution model to target consumers most effectively. Compared to other cosmetic brands, all of bareMinerals products are organic, natural, and do not contain any harsh chemicals. bareMinerals’ a lot of other cosmetic lines do not. The company refers to their makeup as being “so pure you can sleep in it” without harming your skin. bareMinerals is an extremely credible and trusted brand, creating high brand loyalty among consumers. [16] Weaknesses bareMinerals has a limited amount of company-owned boutiques. Their products are mainly sold in department stores along side many other cosmetic brands. By not displaying bareMinerals’ products in a stand alone setting, consumers are exposed to a multitude of other competitve brands. Created in 1995, bareMinerals is a newer brand and not as established as older brands, such as Estee Lauder, which have more time to create high brand loyalty and trust. Because it is a new brand, bareMinerals has only had one advertising campaign, as opposed to other mineral brands who have had various campaigns. Situation Analysis Threats Opportunities Many competitors are beginning to come out with all-natural products, causing bareMinerals to become less and less unique over time. There are also more established brands that have more time and money for research compared to bareMinerals. Since bareMinerals is fairly new, there are consumers who are already loyal to other cos- bareMinerals has the opportunity to launch another successful campaign in order to rise above their competitors. Since bareMinerals is a newer brand, it has room to grow, develop, and gain consumer loyalty. bareMinerals also has many opportunities to use social media to reach out to product users. By making use of various social media outlets, such as Facebook, Twitter, and Instagram, bareMgraphic most effectively. them to switch. bareMinerals is solely focused on the health aspect of their cosmetics. However, there are many consumers who are not conerned away from bareMinerals. This gives other companies the opportunity to target these consumers in other ways, without highlighting the organic, pure qualities in the way bareMinerals does. [17] Creative Strategy Communication Objectives Promise Our campaign’s goal is to inform young adults and middle-aged women ages 18 to 24 of the health ben- bareMinerals guarantees all natural ingredients that will provide a healthy complexion without harmful chemicals. mineral composition enhances the all-natural complexion of every woman, making look young and feel healthy. We want to initiate a relationship with our consumers in a friendly and fun manner by creating Tone in her own skin. While achieving these objectives, we hope to instill long-lasting brand loyalty and trust. Brand Positioning We want to position our brand to women who want to achieve a beautiful complexion without irritating their skin. bareMinerals is an all-natural cosmetic from 100% pure minerals. It is the best brand to keep your skin looking radiant at all times, allowing your inner, natural beauty to shine through. [18] The tone of our campaign is pure, soft and simple. The goal is for our campaign to be engaging and relatable to young women so they are encouraged to look further into bareMinerals. Slogan 1) Beauty is endless. bareMinerals is now. 2) Beauty is natural. So are we. Executions We will utilize print and outdoor advertisements, spemagazines and billboard and transit ads.. We will incorporate our slogans and tone to form one cohesive campaign. Creative Execution Print Ad [19] Creative Execution Billboard [20] Media Objective and Strategies Target Audience & Media Mix Objective: Our objective is to target women ages 18 to on female students and professionals who are always on the go. Our product will give these women a reliable and affordable cosmetic. Strategy: We will execute our campaign through the use door advertisements, such as billboards and transit ads. Because our target audience are professional working women, we decided to focus our advetising on mediums that on-the-go women would see, and not utilize TV advertising for this campaign. We determined our target markets by evaluating the index numbers of major U.S. cities. The cities with the highest potential for sales, will be heavily targeted in our campaign. The target markets in the United States are the Greater Los Angeles region(147), the East Central region (122), including, Chicago, Indianapolis, and Columbus, the Mid-Atlantic region(118), including Richmond, Charleston, and Nashville, the New York Metro area(109), the North East(109), including Boston and Phoenix, Los Angeles, Portland, and Seattle. [21] Reach & Frequency Objective: Our goal is to achieve a frequency of 2.8 during our heaviest months of advertising. Our reach will be in the high 70’s for the months of heavier advertising, and range from the high 50’s to low 60’s for the months of lighter advertising. Strategy: ing for nine months of the year, and having three months of no advertising. We hope to optimize our frequency and reach during March and April, and again in November and December for the Holidays. Through both spot-heavy and national advertising we have distributed our budget strategically throughout the year. During our heaviest months of advertising, our reach will range from 74.6 to 77.6, and our frequency will range from 2.3 to 2.6. During our lighter months of advertising, our reach will range from 57.7 to 62.4, and our frequency from 1.6 to 1.8. Media Objective and Strategies Schedule & Timing Geography Strategy: To obtain our objective, bareMinerals will uti- region(110), the New York Metro region(109), and the Northeast region(109). months of the year with three months of no advertising. Budget Objective: Our objective is to advertise the heaviest during the beginning of our campaign launch (March and April), and during the Holiday months (November and December). During the launch of our campaign in March and April, we will optimize our reach and frequency with heavy advertising. For the summer months of July and August makeup sales are low. Since most consumers do not heavily use our product during this season, we will take these two months to conserve our budget and prepare for September. During the Holiday season of November and December, sales are high, therefore, we will once again optimize our reach and frequency. After the rush of the Holiday season, we will take a month of no advertising in February to conclude our yearlong campaign. We will promote bareMinerals as a natural, healthy product throughout the entire campaign. [22] We will target the regions with the highest index numbers, predicting the highest potential for sales. These regions, as previously shown on the map (page 11), are the Greater Los Angeles region(147), the East Central Objective: The budget for our year long campaign is $18,000,000. Because we are advertising towards a spot heavy audience, we are only utlizing half of the $34,866,400 from the previous year’s budget. Strategy: We will execute our campaign through both print and outdoor advertising. Our print advertisements will appear in Women’s and General Intetest magazines, costing $4,290,000 and $5,914,700 respectively. Our outdoor advertisments will appear on billboards and transit ads, costing $7,543,300. At the end of our camaign, our total expenses will be $17,748,100. Media Integration Strategy 1: Celebrity Signing Objective: To promote awareness of our brand by association with well-known celebrity, Natalie Portman, through a product endorsement event. Strategy: During the beginning of our campaign launch, we will host a guest celebrity appearance with Natalie Portman at Ulta in downtown Los Angeles. Natalie is a well-known icon in our target demographic of young professional women, as well as a loyal customer to the brand. Natalie is always in the spot light, and relies on bareMinerals to make her skin look natural and beautiful at all times. Natalie will endorse our product through a short Q&A followed by an autograph signing. We will provide a postcard version of our print ad that will be available for Natalie to sign for all who attend the event. Through Natalie, we hope to create and maintain a friendly, personal relationship with our consumers. To promote this event, we will advertise via Facebook, Twitter, and Instagram. We will also put posters and signs around the store. We [23] plan to devote $1,000,000 for this project. This includes payment for Natalie’s appearance, the cost of the signs and posters to promote the event, along with a contract with Ulta to host the event. Strategy 2: Giveaway Objective: To promote our campaign by giving away free products in order to create excitement in our consumers about our brand. Strategy: For our back to school campaign, which launches in September, we will partner with a couple cosmetic retailers, Ulta and Sephora, to host our promotional give away. For this promotion, we at each store with a free, small make-up pouch ples from our product line. These sample products will be the products that we are heavily advertising for that month. Media Integration To promote this event, we will send direct mail to previous customers alerting them of the giveaway, along with placing a promotional insertion in both women and general interests magazines. With the cost of the mailing, and the insertions, along with the cost of the free merchandise, we plan to spend roughly $500,000 on this promotion. Strategy 3: $50, $100 Purchase Prize Objective: To encourage a behavioral change in our consumers to buy our product by rewarding them with prizes for each benchmark purchase. Strategy: Frequently throughout our yearlong campaign we will have purchase prizes for customers who spend benchmark amounts of either $50 or $100. The prize will be a small giveaway item that they can claim at their location of purchase. $50 spenders will receive a small make-up bag and $100 spenders will receive a larger tote bag. [24] We will promote this purchase prize similarly to our giveaway promotion, using a combination of insertions in magazine publications as well as instore advertisements. Each individual store that sells bareMinerals products will independently promote this purchase prize, as well. We plan to spend roughly $750,000 on this promotional strategy, including the cost of advertising, and the cost of the actual prizes. Media Flowchart [25] References “2012 Annual Report.” (2012, June 30). In investors.elcompanies.com. Retrieved April 19, 2013 from http://www.investors.elcompanies.com/phoe nix.vhtml?c=109458&p=irol-reportsannual "Bare Escentuals (BARE)." Form 10-K. (n.d.). In Wikinvest. Retrieved February 26, 2013 from http://www.wikinvest.com/stock/Bare_Escentu als_%28BARE%29 Bare Escentuals Beauty, Inc. “Meet Leslie.” (n.d.). In Bareescentuals.com. Retrieved February 26, 2013 from http://www.bareescentuals.com/on/ demandware.store/Sites-BareEscentuals-Site/default/Experience-Show?cgid=BE_SUB_ MEET_LESLIE Bare Escentuals Beauty, Inc. “Why Minerals?” (n.d.). In Bareescentuals.com. Retrieved February 26, 2013 from http://www.bareescentuals.com/ on/demandware.store/Sites-BareEscentuals-Site/default/Experience-Show?cgid=BE_SUB_DIFF “How I Did It: Leslie Blodgett of Bare Escentuals.” (n.d.). In Inc.com. Retrieved February 26, 2013 from http://www.inc.com/magazine/20100701/ how-i-did-it-leslie-blodgett-of-bare-escentuals.html “Is Mary Kay a “pink pyramid” scheme?” (2012, August 22). In CBS News. 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Retrieved February 26, 2012 from http://www.lives trong.com [26] Appendix Ad Spender- bareMinerals Untitled Report Column1 PRODUCT bareMinerals : Cosmetics DR bareMinerals : Foundation : Powder bareMinerals : General Promotion - Cosmetic & Beauty Aids bareMinerals : General Promotion - Skin Care Products bareMinerals : Vignette bareMinerals Active Cell Renewal Night : Facial Moisturizer : Serum bareMinerals Blemish Therapy : Foundation : Powder bareMinerals Firming Eye Treatment : Anti-Aging Eye Treatment bareMinerals Original : Foundation : Powder bareMinerals READY : Blush : Powder bareMinerals READY : Bronzer bareMinerals READY : Eye Shadow bareMinerals READY : Foundation bareMinerals READY : Foundation : Compact bareMinerals READY : Multi Cosmetics bareMinerals Store : Online GRAND TOTAL Column2 Column3 Column4 Column5 Column6 Column7 Column8 Column9 TOTAL (000) NETWORK TV CABLE TV SYNDICATION SPOT TV MAGAZINES NATL NEWSP US INT-DISPLAY 8649.3 7944.1 170.8 534.4 7644.3 4632.8 2623 11.1 160.5 216.9 1.8 0.9 1 1.5 1.5 16.8 16.8 414 414 41.7 41.7 0.2 0.2 2148.8 2148.8 3.5 3.5 15.8 15.8 5350.7 1875.9 807.3 2662.3 5.2 1397.3 1397.3 1901.2 1581.8 142.9 176.5 5492.1 2599.9 2892.2 1787.5 1787.5 34866.4 9108.6 14283.6 170.8 546.4 7950.6 142.9 2663.5 *Columns indicate cost in thousands [27] Appendix Ad Spender- Competitors Column1 PRODUCT Cover Girl : Corporate Promotion Cover Girl : General Promotion - Cosmetic & Beauty Aids Cover Girl : Multi Beauty Aids Cover Girl : Multi Cosmetics Cover Girl : Multi Face Makeup Cover Girl : Online Mary Kay : General Promotion - Cosmetic & Beauty Aids Mary Kay : Multi Beauty Aids Mary Kay : Multi Cosmetics Mary Kay Compact Mini : Multi Cosmetics : Compact Mary Kay Cosmetics Inc : Corporate Promotion Mary Kay Cosmetics Inc : Online Sheer Cover : Foundation : Powder Sheer Cover : Multi Face Makeup Sheer Cover : Online Sheer Cover : Powder Foundation DR Estee Lauder : General Promotion - Cosmetic & Beauty Aids Estee Lauder : Multi Beauty Aids Estee Lauder : Multi Cosmetics Estee Lauder : Online Estee Lauder Cos Inc : Corporate Promotion Estee Lauder Inc : Corporate Promotion Column2 TOTAL (000) 774.6 935.4 263.9 37896.9 874.4 827.8 348.4 1549.7 4777 312.4 2486.8 22.6 36.1 5.1 161.2 6762.4 52.8 4700.3 95.4 15.7 2247.4 23.3 Column3 NETWORK TV Column4 SLN TV 278.1 2515.2 42.7 347 713.8 Column5 CABLE TV Column6 SYNDICATION Column7 SPOT TV 15 0.1 1376.8 56 576.6 1074.3 2065.2 0.5 161.2 Column8 MAGAZINE 0.1 649.9 314.1 1528.8 3671.2 135.1 641.1 307.1 Column9 SUNDAY MAGS 44.1 288.9 130.1 27589.3 716.5 Column10 HISP MAG Column11 NEWSPAPER Column12 US INT-DISPLAY 314 2116.2 1.5 1.1 7.4 69.5 57.6 79.2 393.5 Column13 OUTDOOR 123.4 646.3 34.9 883.8 58.6 827.8 19.8 32.8 19.8 13.5 107.8 20.1 2.5 36.1 5.1 161.2 6762.4 11.2 52.8 1.4 3.6 15.7 6.3 4698.9 74.4 2247.4 23.3 *Columns indicate cost in thousands [28] Appendix Competitive Spending Comparison [29] Appendix Ostrow Model [30] Appendix Simmons [31] [32]