Marketing Analytics - [Premier Cosmetics]

Somerville - Team 2Kehinde Adewunmi

Byungjin An Michela Caltran

Lucia Lozano Vladimir Martyanov

Report offered by Results Marketing

Agenda

Industry Overview

Financial Assessment

Target Audience

Competitor Analysis

Marketing Strategy

Key Performance Indicators

Customer Touch Points

Marketing Initiative

Recommendations

Industry Overview

Personal Care Products Manufacturing Industry The industry generates revenue of $250B annually according to the PCPC, with the BRIC countries emerging as top producers. The US industry is made up of about 850 companies with a total revenue of about $42B.

Opportunities People are more concern about chemical safety and are now looking for more organic and natural products. Exports and Internet sales are also showing a substantial growth.

Our Competition Currently the prestige brands dominating the market are Estee Lauder, Clinique, Lancôme and Chanel.

2010 2011 2012 2013 2014 2015$0

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000Net Marketing ContributionMarketing & Sales Expenses

Net Sales 2014:

Gross Profit 2014:

$10,968,800

Financial Assessment

$13,162,560

$10,135,171

$8,810,600

2010 2011 2012 2013 2014 2015

ROI 0.57 0.61 0.63 0.65 0.68 1.25

ROS 0.28 0.3 0.31 0.32 0.33 0.43

10%

30%

50%

70%

90%

110%

130%

Return On Investment / Return On Sales

Financial Assessment

Customer Lifetime Value

[6 Years] = $265

[7 Years] = $410

Target Audience

Age: 22-35

Status: Young professional

Socio-economic status: High Income

Lifestyle: Healthy and active

Interests: Concerned about her appearance; Follows trends and styles;Looks for premium products;

Likes to shop online, [Tech Savvy]

Personality: Charming, elegant, adventurous and outgoing

Competitor Analysis

Fashion , Jewellery, Perfumes and Cosmetics$300-$8,000

Brand Awareness: Fashion Shows, Celebrity Endorsements

Launching Events, TV commercials and magazines.

Customer Relationships: Special Events, Blogs, Forum, Website «Chanel Club» for high-margin customers with

exclusive invitations, private sales, and boutique openings.

Competitor Analysis

Marketing & Sales Investment

(30% of Sales)$4,500,000

Traditional Marketing (85.5%)

$3,850,000

Digital Marketing (14.5%)

$650,000

Marketing Budget Allocation

Digital Marketing (14.5%)

$650,000

Social Media (38.5%)

$250,000

WebSite (46%)$300,000

Mobile (15%)$100,000

Digital Marketing Allocation

Fashion events

Paper and online magazines

Celebrities

VIP Treatments & Club Membership

Facebook

YouTube

Twitter

Blog

LinkedIn

Pinterest

Google+

Official Website

Official Forum

Official Blog

SEO

Google Adwords

Mobile Commerce App

Mobile Ads

Social Communities

Interactive content

Marketing Strategy

Key Performance Indicators

Marketing Funnel

Keyword Performance

Social Interactions

• Ana reads a “Vogue” magazine, where she sees a picture of a make up model. Below the picture, she read that the photo session was sponsored by Premier Cosmetics.

• While reading the magazine, Ana uses her smartphone to google “trendy cosmetics”.

• The result shows a paid search ad for Premier Cosmetics. She also sees Online Magazines and Cosmetics Social Media in the same search.

• She opens the page of an Online Magazine to read an article about new cosmetics products and, while there, she notices a link to a YouTube video of a fashion event in the end of which Premier Cosmetics receives a special thanks for the sponsorship.

• Ana googles “Premier Cosmetics” and finds a link to the official website and social media pages.• She goes to the Facebook fan page of Premier Cosmetics to read some comments and view the

content. She sees the link to the Premier Cosmetics official webpage and clicks on it.• She enters the webpage and views the content. While clicking on a second page on the website,

a pop-up appears and suggests Ana to become a Premier Club member and download the Premier mobile app.

• Ana subscribes and downloads the app.

Customer Touch Points

Ana

The paid ads are linked to specific keywords that are regularly monitored.

Different versions of the ad are tested. CTR and Conversion Rate are monitored.

The landing pages are chosen accordingly to the product searched.

Paid Ad

Test Budget of $1,000 to $2,000 per month

YouTube Channel

Videos feauturing product-related content are uploaded periodically Tutorials and How-to Videos are also shared [i.e. «How to apply Liquid Eyeliner»] Users are encourage to share their opinions and personal experience

Brand to Customer to Brand conversations

Customer to Customer conversations

Product and Brand content

Facebook Page

Monitor Interactions

Increase Brand Awareness and User Engagement

Official Website

Official Website

Google Analytics

Google Analytics

Marketing

InitiativeThe «Essence of Nature» Campaign focuses on a specific cosmetics line that is composed of ingredients of natural origin.

These natural organic products are 35% more expensive than traditional ones.

The colors will be chosen following the trends for Spring 2015.

SHOP NOW

Marketing Initiative

Recommendations

Follow trends• Content marketing: Articles, User Experience, How-to Videos• Build the Online Community• Mobile Commerce App

Optimization• Monitor Customer Satisfaction• Optimize the website to increase conversion rate: A/B testing

Implement suggested Marketing Allocations

Reduce Marketing Investment

Be the Best…

THANK YOU

• CHANEL, (2015). CHANEL Official Website: Fashion, Fragrance, Beauty, Watches, Fine Jewelry. [online] Available at: http://www.chanel.com/en_US/

• "Mobile App Development - How Much Do You Need to Spend to Develop an Mobile App?" Mobile App Development - How Much Do You Need to Spend to Develop an Mobile App? 22 Aug. 2014. http://tech.co/cost-outsource-app-development-india-2014-08

• "How Much Does A Website Cost?" Out of Web Site. Web. http://www.outofwebsite.com/web-design-tips/article-how-much-does-a-website-cost/

• "How Much Should Your Company Invest In Digital Marketing?" Business 2 Community. Web. http://www.business2community.com/digital-marketing/much-company-invest-digital-marketing-01022338

• "Keyword Performance." Keyword Performance. Web. http://www.klipfolio.com/resources/kpi-examples/marketing/keyword-performance

• "Purchase Funnel." Purchase Funnel. Web. http://www.klipfolio.com/resources/kpi-examples/marketing/purchase-funnel

• "Social Interactions." Metrics. Web. http://www.klipfolio.com/resources/kpi-examples/marketing/social-interactions

• "Quora." How Much Do US Companies Spend Annually on Social Media Marketing Campaigns? Web. http://www.quora.com/How-much-do-US-companies-spend-annually-on-social-media-marketing-campaigns

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Bibliography