Eureka! It s a business Beauty & Go PORTO BUSINESS SCHOOL Team PBS Silvia Duarte Rui Rosas Francisco Cudell Pedro Vilas Boas
Challenge Analysis Recommendations Challenges How you should prioritize markets and distribution channels to maximize the potential of the products and the JV?
Challenge Analysis Recommendations Challenges What product, pricing and marketing/ communication strategies would be optimal for each of the markets/ channels you think we should pursue?
Challenge Analysis Recommendations We identified the following key issues 1 The Brand is not recognized in the new markets 2 The positioning is not yet clear between heath and beauty or food and beverage
Challenge Analysis Recommendations AGENDA Analysis Recommendations Financial Impact Risks Implementation Plan
Analysis
Challenge Analysis Recommendations Who are you? JV between 3 companies AMC Group Natura Bisse Danku Product that can Revolutionize beverage market
Challenge Analysis Recommendations Who are you? JV between 3 companies AMC Group Natura Bisse Danku Product that can Revolutionize beverage market You sell a product that gives health and wellbeing, with proven influence on skin
Challenge Analysis Recommendations And who are the Players in the Beauty & Go JV AMC (33%) Powerful player in beverages R&D Innovation award winning company Strong worldwide supply chain DANKO (33%) NATURA BISSE (33%) Innovation Health connection Fashion and marketing Exclusive Points of sales Prestigious SPA s & Hotels Movie stars Internet expert new markets Investor Active disruptive innovations Powerful connection that will help achieve the omni-channel approach
Challenge Analysis Recommendations What does Beauty & Go Stand for? Health Health trends are going global Premium Product Product that offers better skin Innovation MacroAntioxidants Lifestyle Health and beauty
Challenge Analysis Recommendations What does Beauty & Go Stand for? Health Health trends are going global Premium Product Product that offers better skin Innovation MacroAntioxidants Lifestyle Health and beauty A completely new product that tackles the new and growing need for health conscious living with better skin
Challenge Analysis Recommendations Let s take a deeper look into your product Sales Creams and Lotions Juices Beauty & Go Time A differentiated innovative product that combines health and looks
Challenge Analysis Recommendations From a macro view this is the actual situation Political / Economical Environment Social Technological Different taxation policies between countries Greater concern regarding health and beauty issues in Asia Need to be informed consumers demand complete information about the product Connection to technology is imperative Consumers are constantly connected
Challenge Analysis Recommendations Let s take a deeper look into your industry Consumer power Supplier power Rivalry Very High - consumer is the key High - Retailers have considerable power Not yet existent The innovations are protected by patents Need to be active in marketing and bear in mind that patents will expire
Challenge Analysis Recommendations Who is your target consumer? Gender Female Age Between 26 and 60 years old Economic power Lifestyle Available disposable income Health trendy living Social Class Medium high
Challenge Analysis Recommendations Who is your target consumer? Gender Female Age Between 26 and 60 years old Economic power Lifestyle Available disposable income Health trendy living Social Class Medium high Target market is successful and effective. But should you open your target to new consumers?
Challenge Analysis Recommendations Let s analyze the new consumer Gender Male Age Between 30 and 55 years old Economic power Lifestyle Available disposable income New concern with looks, and status Social Class Medium high
Challenge Analysis Recommendations Let s analyze the new consumer Gender Male Age Between 30 and 55 years old Economic power Lifestyle Available disposable income New concern with looks, and status Social Class Medium high With this new approach, the Beauty and Go will achieve a broader segment
Challenge Analysis Recommendations What are the Market trends Programmatic advertising Omni-channel approach to the market Health trend lifestyle Me centric ROPO research online / offline purchase offline / online IOT internet of things These trends must be tackled in order to achieve the desired goals
Challenge Analysis Recommendations Summing Up S W O T Powerful supply chain New brand and product not easily identifiable Technology new male lifestyle Different cultures in the world can change the consumer desires
Recommendations
Challenge Analysis Recommendations We identified the following key issues 1 The Brand is not recognized in the new markets 2 The positioning is not yet clear between heath and beauty or food and beverage
Markets Alternatives Markets Potential Growth Risks Health Concern Disposable income Results USA + + + + + + + + + 9 China + + + + + + + + + + Other EU + + + + + + 10 6 Africa - - - - - - - - - - - - -12 South America + - - - - -3 Russia + + - - - + + + 2
Markets Alternatives Markets Potential Growth Risks Health Concern Disposable income Results USA + + + + + + + + + 9 China + + + + + + + + + + Other EU + + + + + + 10 6 Africa - - - - - - - - - - - - -12 South America + - - - - -3 Russia + + - - - + + + 2
Pillars to grow Supply Chain Marketing Mix Distributors Channels Point of Sale Product Price Place Promotion Anytime Everywhere Caring of U
Pillars to grow Supply Chain Marketing Mix Distributors Channels Point of Sale Product Price Place Promotion Anytime Everywhere Caring of U
Anytime Everywhere Distributors Channels Point of Sale Use Natura Bisse distributors network for USA, China and Spain markets
Anytime Everywhere Distributors Channels Point of Sale Use Natura Bisse distributors network for USA, China and Spanish markets Use Danku distributors network for UK and other European countries (Germany)
Anytime Everywhere Distributors Channels Point of Sale Use Natura Bisse distributors network for USA, China and Spanish markets Use Danku distributors network for UK and other European countries (Germany) Create Distribution Centers in USA (New Jersey) and China (Xangai)
Anytime Everywhere Distributors Channels Point of Sale Use Natura Bisse distributors network for USA, China and Spanish markets Use Danku distributors network for UK and other European countries (Germany) Create Distribution Centers in USA (New Jersey) and China (Xangai) Capitalize on Joint Venture partners
Anytime Everywhere Distributors Channels Point of Sale Use a Brick & Click strategy
Anytime Everywhere Distributors Channels Point of Sale Use a Brick & Click strategy Omni-Channel approach
Anytime Everywhere Distributors Channels Point of Sale Use a Brick & Click strategy Omni-Channel approach One single Brand in every channel
Anytime Everywhere Distributors Channels Point of Sale Premium Department Store (China -Wanda; USA- Bergdorf Goodman and Barneys)
Anytime Everywhere Distributors Channels Point of Sale Premium Department Store (China -Wanda; USA- Bergdorf Goodman and Barneys) Flagship stores in major cities of each market (China Xangai, Hong Kong and Beijing; USA NY and Los Angeles; UK London; Spain Madrid and Barcelona) Trendy stores that inspire well-being and relax (Nespresso style)
Anytime Everywhere Distributors Channels Point of Sale Online E-commerce through Brand Website Hotel, Spa s and Beauty salons (through Natura Bisse ) Airlines Company Fly Emirates, Qatar Airways, Singapore and Thai Airlines
Anytime Everywhere Distributors Channels Point of Sale Online E-commerce through Brand Website Hotel, Spa s and Beauty salons (through Natura Bisse ) Airlines Company Fly Emirates, Qatar Airways, Singapore and Thai Airlines Customer Convenience and Brand Awareness
Pillars to grow Supply Chain Marketing Mix Distributors Channels Point of Sale Product Price Place Promotion Anytime Everywhere Caring of U
Caring of U Product Place Promotion Promotion WHAT Beauty & Go shots
Caring of U Product Place Promotion Promotion WHAT Beauty & Go shots HOW 30 days Beauty & Go box (with IoT included) to be sold on flagship and online 30 units refill package to be sold on flagship and online Individual shots to be sold on flagship
Caring of U Product Place Promotion Promotion WHAT Beauty & Go shots HOW 30 days Beauty & Go box (with IoT included) to be sold on flagship and online 30 units refill package to be sold on flagship and online Individual shots to be sold on flagship Daily Uni Dose
Caring of U Product Place Promotion Promotion WHAT Black Packaging Product with different flavors for men
Caring of U Product Place Promotion Promotion WHAT Black Packaging Product with different flavors for men WHAT Keep Traditional Beauty & Go products but launch new flavors with seasonal and special events to be sold on department stores
Caring of U Product Place Promotion Promotion WHAT Black Packaging Product with different flavors for men WHAT Keep Traditional Beauty & Go products but launch new flavors with seasonal and special events to be sold on department stores Embrace Men Healthy and Stylish Trend
Caring of U Product Place Promotion Promotion WHAT Launch the Flagship Store inspiring well being and relaxation
Caring of U Product Place Promotion Promotion WHAT Launch the Flagship Store inspiring well being and relaxation HOW Make the Biometric sensor available within store for skin evaluation customers will note product effect Personal Health and Care advisor in store
Caring of U Product Place Promotion Promotion WHAT Launch the Flagship Store inspiring well being and relaxation HOW Make the Biometric sensor available within store for skin evaluation customers will note product effect Personal Health and Care advisor in store Differentiated Customer Experience
Caring of U Product Place Promotion Promotion WHAT Web-Site
Caring of U Product Place Promotion Promotion WHAT Web-Site HOW E-commerce platform (Magento) Blog about LifeStyle with personal tips
Caring of U Product Place Promotion Promotion WHAT Web-Site HOW E-commerce platform (Magento) Blog about LifeStyle with personal tips Customer Relationship Management (CRM) Customer Convenience and Improved Value Proposition
Caring of U Product Place Promotion Promotion WHAT Ambassadors for USA and Chinese Market
Caring of U Product Place Promotion Promotion WHAT Ambassadors for USA and Chinese Market WHO USA Brad Pitt and Angelina Jolie China Andy Lau and Fang Bingbing
Caring of U Product Place Promotion Promotion WHAT Ambassadors for USA and Chinese Market WHO USA Brad Pitt and Angelina Jolie China Andy Lau and Fang Bingbing Brand Awareness and Market Penetration
Caring of U Product Place Promotion Promotion WHAT Adopt a Programmatic advertisement strategy
Caring of U Product Place Promotion Promotion WHAT Adopt a Programmatic advertisement strategy WHY Foster Omni-Channel approach More effective cost control and advertisement placing
Caring of U Product Place Promotion Promotion WHAT Adopt a Programmatic advertisement strategy WHY WHY Foster Omni-Channel approach More effective cost control and advertisement placing Contract a Marketing Advertisement agency that know both markets
Caring of U Product Place Promotion Promotion WHAT Adopt a Programmatic advertisement strategy WHY WHY Foster Omni-Channel approach More effective cost control and advertisement placing Contract a Marketing Advertisement agency that know both markets Efficient Marketing Campaign
Caring of U Product Place Promotion Promotion WHAT Augment reality in product packaging
Caring of U Product Place Promotion Promotion WHAT Augment reality in product packaging WHY Foster brand Engagement and inform customers about products qualities
Caring of U Product Place Promotion Promotion WHAT Augment reality in product packaging WHY Foster brand Engagement and inform customers about products qualities Brand Engagment
Caring of U Product Place Promotion Promotion WHAT Beauty & Go APP
Caring of U Product Place Promotion Promotion WHAT Beauty & Go APP WHY Allow e-commerce shopping Loyalty card included Biometric sensor to evaluate skin Align with Trend
Caring of U Product Place Promotion Promotion WHAT WHAT Sponsor Festivals (Coachella) and Fashion shows (NY fashion week) Community Manager to ensure social media communication aligned with brand Brand Awareness
Caring of U Product Place Promotion Princing WHAT Ideally have same price in all countries Different product sell online and flagship to avoid conflicts with department store sales HOW Shots to be sold only online and flagship Not misleading customer
Challenge Analysis Recommendations Challenges How you should prioritize markets and distribution channels to maximize the potential of the products and the JV?
Challenge Analysis Recommendations Challenges What product, pricing and marketing/ communication strategies would be optimal for each of the markets/ channels you think we should pursue?
Challenge Analysis Recommendations We identified the following key issues 1 The Brand is not recognized in the new markets 2 The positioning is not yet clear between heath and beauty or food and beverage
Pillars to grow Supply Chain Marketing Mix Distributors Channels Point of Sale Product Price Place Promotion Anytime Everywhere Caring of U
Financial Impact
Financials Risks & Plan Assumptions
Financials Risks & Plan Investments
Financials Risks & Plan OPEX
Financials Risks & Plan NPV Pay Back Period: 1,3 years NPV: 5 mi
Risks
We identified the following Risks 1 Risks Failure in entering in China different culture Mitigation Ensure you have a local partner that understands the culture Impact 1 2 3 probability 2 Price misleading - online Assume the riskcostumer know the geographic distances and realities 3 Identified ambassadors may not be available List other options Challenge Analysis Recommendations Financials Risks && Plan
Implementation
Financials Risks && Plan Building the future Implementation Plan 2016 2017 2018 2019 2019 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Any time any where enter in china enter in usa Distibuition centers Premium stores Airlines partnerships Caring of U beauty and go shots Men new line New Flavour Ecommerce Ambassador Aumentaed reality festivals Evaluation points in the strategy
Summing up
Pillars to grow Supply Chain Marketing Mix Distributors Channels Point of Sale Product Price Place Promotion Anytime Everywhere Caring of U
Challenge Analysis Recommendations Challenges How you should prioritize markets and distribution channels to maximize the potential of the products and the JV?
Challenge Analysis Recommendations Challenges What product, pricing and marketing/ communication strategies would be optimal for each of the markets/ channels you think we should pursue?
Challenge Analysis Recommendations We identified the following key issues 1 The Brand is not recognized in the new markets 2 The positioning is not yet clear between heath and beauty or food and beverage