Product: Eyebrow Tattoo Sticker Description: Many people find it troublesome and difficult to draw eyebrows, and many people are

Product: Eyebrow Tattoo Sticker Description: Many people find it troublesome and difficult to draw eyebrows, and many people are afraid of eyebrow tattooing, so we plan to design an eyebrow tattoo sticker, which can last for about a week. There are already some similar products on the market, but they have a lot of shortcomings and the technology is not very mature. For example, many people do not know what kind of eyebrows they are suitable for, then they may buy eyebrow stickers that are not suitable for them (In this regard, we try to provide virtual eyebrow simulation services. The clients can take a picture and try different eyebrow shapes and color on their face in order to find their most satisfactory eyebrow shape and color). The products on the market also have some other problems, such as being unnatural, easy to fall off. We will improve these shortcomings, including designing more different eyebrow shapes and colors.

Market profile: Size,stage of growth: (Xiangyu) Though eyebrow makeup was a small market, with little industrial specific data. In the age of COVID-19, face masks have made it a focus. According to the senior vice president of merchandising in makeup in Sephora, “Prior to mask-wearing shifting clients' beauty habits, we saw a new trend developing toward a more natural, fluffy brow look that helped drive heightened interest in the category”. A similar market, false eyelashes, has boomed from $1.1 billion in 2018 to $1.96 billion last year, a 78.2% increase.

As eyebrow makeup becomes a daily demand in the pandemic era, the traditional makeup tools, eyebrow pencils and creams, cannot meet the needs of consumers. According to Anastasia Beverly Hills market research, only about 35% of respondents were doing their brows everyday. Meanwhile, 60% of the target felt “intimated, overwhelmed, confused or scared” to do their brows at all. Thus, a product which can free people from time-consuming everyday brow makeup would be a potential large and fast growing market, with an estimated market size of $2 billion dollars.

Customer segments: Groups of prospects with similar wants & needs: (Fan) Audience personas: Serena, a 25-year-old, an analyst for a private equity company, who is totally occupied with work and don’t have too much time spent doing make-up Coco, a 20-year-old girl who is just a beginner at make-up, regards drawing eyebrows as a huge struggle for her.

Fiona, a 18 year old girl who is fond of fashion and likes to try brand-new things, always pursues different patterns and different colors of eyebrows. Josh, a 40 year old man who is going through chemotherapy and has lost most of his bodyhair.

Marketing positioning :

We aim to deliver the best product suitable for our customers' needs. By offering the virtual

eyebrow simulation services, the customer builds trust in the company, knowing more or less the

look they will have once using the product, instead of buying from a retailer without being able

to try it on and having the risk of not suiting well on their faces. This can happen either because

of color, format or size. Our clients can choose from an array of color and format options,

whereas today the market offerings are limited. In addition to that, our product will have

enhanced features such as being waterproof, having long-lasting pigments, being easy to remove

and apply.

We will develop our product lines through 5 phases with the development of our business, from basic line to fashion line, male line, customized line, and celebrity line.

Phase 1 This line will offer the most basic eyebrow sets similar to those in the market which come in brown and black colors but with superior quality to compete effectively. This line will also rely on our virtual eyebrow simulation services which will help select the color and shape of the eyebrow for the client without the struggle of trial and error. Key qualities which will make our brand superior at this phase are that the eyebrows will be waterproof, sweatproof, and will be easy to use with high flexibility and a 3D appearance. Phase 2 Once the eyebrow tattoo line has become popular and accepted on the basis of superior quality, it will be time to come up with a fashion line that will build on the same qualities but with a variety of colors and patterns. This product line is designed for fashionable people who pursue exaggerated and modern styles. Since the products offered will address the shortcomings of products that are already in the market, it will be easy to win customers from other businesses. Specific products will include clothes with subcategories of the festival, party, casual and official lines. Phase 3 At this point, the brand will be popular across different demographics and it will be time to move to the next level. Many women who trust and buy our brand will be instrumental in propelling the brand to the male gender. We will design the eyebrow Phase 4 The previous phases have sold ready-made clothes and eyebrow sets. At this stage, it is time to focus on addressing the most pressing concerns of our customers. It is extremely important that we are able to give a customer what they need. This calls for customization. We will customize our products to the needs of specific customers. This will propel our brand to reach customers who are choosy and more specific. Phase 5 The line is called celebrity copycatting, which follows the celebrity’s popular eyebrow and produces a similar pattern of the product to the celebrity’s eyebrow. Besides, we can also work with celebrities to develop the patterns.

Pricing Strategy and Competitive Differentiation

The pricing strategy and competitive differentiation for the eyebrow stickers is:

1.We will use a value-based strategy in terms of pricing,which means we will check our competitors’ price and add value with our differentiation into it. https://www.bdc.ca/en/articles-tools/marketing-sales-export/marketing/pricing-5-common-strategies According to our brief survey on the price of our competitors, the average price of eyebrow stickers (12/pairs) is 10 dollars. According to our competitive differentiation listed later, we will add nearly 5 dollars into it, leading to our final price as 15 dollars.

2. We will use high-low pricing strategy on several channels listed below: ● DTC website:high-low pricing ● Specialty Stores:Sephora,CVS, Walgreens ● Mid-tier stores such as Macy’s

3.Competitive differentiation: 1. Brand

Unlike our competitors, we are building a brand that will commercialize the eyebrow stickers. Today there isn’t a brand known for this type of products and also a brand that tells a story behind it. With our brand design and strategy, we aim to create a narrative that will engage our customers and build brand loyalty, which is not something eyebrow sticker customers have currently.

2. Variety To this day it is not easy to find a wide range of eyebrow stickers, mainly talking about their tonalities. It is common to find dark ones (black and dark brown) but not in other colors to match customer’s hair and skin colors, such as for blonde, gray or ginger hair. We plan to develop a range of different colors to suit a bigger number of customers' needs.In addition, we will also develop a wide range of different patterns of eyebrow stickers.

3. Quality We will enhance features to our stickers that will make them have much more quality than the ones currently available. One example of enhanced quality feature will be the glue on each sticker, that will not only be stronger, therefore making them last longer, but also hypoallergenic so it doesn’t harm the user’s skin.we will also use the anti reflective material to make the sticker look more natural.

4. Packaging While today’s products are offered in a plastic sticker sheet, wrapped with plastic foil, our brand’s packaging will be differentiated, made with paper and having a recognizable visual ID that displays the brand. Besides that, the products offered in the market today are sold entirely in one sheet, in a way that the customer has to cut each piece off whenever wants to use it. Our product, however, will come with each pair of stickers individually separated from each other.

5. Customer experience Our brand aims to deliver a better and differentiated customer experience than the ones currently in offer. A pain point to the customer is the inability to try on the sticker before buying it. While it’s not possible to

offer free samples for them to try on, we are developing display’s that will enable customers to choose the most suitable option for them. There will be two types of ways in which this will happen:

A) In store: Partnering with the retailers, in the shelf where the product will be displayed there will be a visual merchandising tool placed along the products where, attached to a small rectangular shaped mirror that has our ID, there will be all the different shapes of eyebrows and colors the brand offers. This way, the customers will be able to see which color and shape works best for them prior to buying the product.

B) Online: For the customer that shops directly from our DTC website, there will be a tool in which they can upload a picture of their face and try on the stickers before buying.

Team: New Youth Angela Qian Anna Victoria Kacelnik Fan Lu Xiangyu Han

Describe the individual customer who you believe will buy your product and for what

reason

In this case, the primary customer groups will include young females who are into beauty

contests, models, fashion designers, and also female artists. These will be people ranging from

the age of 16 years to the late 30s. The reason, in this case, is that in such fields people would

want to modify their beauty as a way of looking better and attracting more clients in the different

fields of businesses they are (Li & Chen, 2018). Besides, the mass of young females from 16 to

40 years old is all the potential customers of our product, they are in high demand of beauty, and

can be influenced by the opinions from fashion and beauty industry, which is our primary

customer group. This consumer group is huge and has a promising consumption ability, so it is

the promise of future success.

Define the retail channel where you wish to sell your product

There are several retail channels where the products can be sold. The primary channel

will be a DTC online store, and other channels, such as department stores, malls, as well as

beauty stores will also be included. . These areas are ideal for such a product because they are

visited frequently by individuals who may be interested in such products.

Select and/or finalize a label/brand name for your project's product and how you plan to

market it

Being a new product in the market, it would also be essential to conduct good marketing

as a way of reaching more customers in the market. This can be done through referrals,

advertising, and word of mouth where customers will be informed of the product and the need to

buy it. It will also be essential to offer several options for customers by providing different

varieties of the product on sale. This will offer them an opportunity to select their most preferred

product and also ensure that they are satisfied at the end of the day. The best brand name for the

product, in this case, would be Meier which means in Chinese, “Mei” owns a similar

pronunciation to “eyebrow” and “beauty”, and Meier can be a meaning of more beautiful.

Besides, Meier is also a female name, which suits our target customer. Also bearing in mind the

product being sold relates to beauty, this would be a good brand name to use.

References

Li, W., & Chen, J. (2018). Pricing and quality competition in a brand-differentiated

supply chain. International Journal of Production Economics , 202 , 97-108.

Group:New Youth

Group member: Angela Qian； Anna Victoria Kacelnik；Fan Lu； Xiangyu Han

Total addressable market size and market share:

⚫ We adopt top-town methods to calculate market size.

⚫ The global eye makeup market reached a value of US$ 15.6 Billion in 2021,with a

CAGR of 5.5% from 2022 to 2027.

⚫ The Maybelline Tattoo Studio brand leads the U.S. market for eyebrow makeup with a

market share of 11.5 percent and its sales were 42.3million dollars,which shows the total

eyebrow market is 367.83 million dollars in 2019, and will be 431.92 million dollars in

2022.

Considering the leading competitor consist of 11.5% percent of market share,the characteristic of

our product, and our customer group, the market share of our brand will be expected to be 5%

and the total addressable market size will be 18.39millions

Sales Strategy – Quasi – consultative selling

Since our offline selling channel will be stores like Sephora, we will find it more efficient to

offer consultative selling to offer customer advice for choosing best pattern of eyebrow stickers

while they can purchase things in self-check out

ramp-up over time via acquisition vs. retention

Our target customer mainly includes two groups of people: Women who are busy with work or

not good at make-up(normal-pattern eyebrow stickers); women especially G-Zwho are pursuing

fashion(fashionable and different-color stickers). In the initial stage, we will focus more on the

former group, and the characteristics of that group will not be the main target of content

marketing and social media users. We can choose to adopt excellent customer service such as 24-

hour chat box to acquire customers or in-store promotion and in-store campaigns, and when we

earn enough money then we can produce more fashionable style eyebrow and adopt content

marketing for G-Z.

Reference

https://blog.hubspot.com/service/customer-acquisition

https://www.statista.com/statistics/380286/leading-us-eyebrow-makeup-brands-based-on-sales/

https://www.imarcgroup.com/eye-makeup-market

https://www.statista.com/statistics/380286/leading-us-eyebrow-makeup-brands-based-

on-sales/

appendix:

location of manufacturing/logistics providers

It will be manufactured in Guangdong Province, China. China is the largest eyebrow tattoo sticker manufacturing country in the world. There are more than 90% of eyebrow tattoo on Amazon comes from China, and around 50% of them comes from Guangdong Provenice. Thus, Guangdong Province has the most experienced manufacturers and the resources which provide the best raw materials.

We choose air transportation as the primary of logistics for three reasons. First, air shipment is affordable, and the shipping cost for each piece is around $0.4. Second, air transportation requires a much smaller minimum volume compared to sea shipment. This avoids the problem of overstock and cashflow issues. Third, air transportation is fast, the average delivery time is 5 days. Since eyebrow sticker is a fast changing fashion business, time is important. Thus, DHL, Fedex and UPS are our primary carriers. Among them, since DHL provides the fastest delivery, 3-5 days, .

name of relevant vendors

We choose around 5 manufacturers and allocate orders to them according to their performance, including speed and quality. Assuming the monthly sale is over 2000 pieces a month, the average cost of each piece should be around $0.25. Here is the list of our manufacturers:

Shenzhen Qianyu Gift Co., Ltd. Dongguan Greae Paper Products Co., Ltd. Shenzhen Lamigo Daily Products Co., Ltd. Dongguan Bella Technology Co., Ltd. Dongguan Zhengxiang Color Film Arts & Crafts Co., Ltd.

relevant processes The manufacturing process of eyebrow tattoo stickers can be divided into 5 steps: Printing – Drying – Printing Again – Airing – Packaging.

Final Project: Hygge Hand Cream Senior Buyers

Duncan Colterjohn, Licia Coimbra Sousa, Andrew Niedt, Yunling Zhang

April 7, 2021

Presentation Framework Product and assortment Positioning and Branding

Sales Channels and Visual Merchandising

Sales projections Operations

• Select a product to be sold at retail.

• Design and create a sample of the product.

• Specify all of its component parts, specifications, sizes, colors etc.

• Build a conceptual assortment around your product. Consider line extensions, related items, etc.

• Define the individual customer who you believe will buy the product, and for what reason

• Position the product relative to actually available competitive merchandise. Describe why your product is differentiated from competition and how you believe the retailer should position your product in their store.

• Select a label/brand name for your product. Define your product’s brand’s equity.

• Define the retail channel where you wish to sell the product.

• Design a selling package, and fixture for your product, including signage and visual merchandising requirements such as presentation minimums etc.

• Determine the cost of the product as best you can and define the product’s retail selling strategy and expected retail price. From this determine your gross margin expectation for the product.

• Estimate the sales potential of your product in units and retail dollars.

• Describe where and how the product will be manufactured

• Describe how your product will be shipped and supported logistically.

The product

Hygge Hand Cream soothes, nourishes and protects hands from harsh or dry conditions, and generates a feeling of contentment and well-being. This fast- absorbing cream made of natural ingredients moisturizes, nurtures and supports the skin’s natural processes of renewal without leaving a greasy residue.

Product and assortment Positioning and Branding Sales Channels and Visual

Merchandising Sales projections Operations

Assortment and Line Extensions

– Hygge Hand Cream has the potential to expand across both vertical and horizontal product extensions.

– Size: In addition to the original container size (50ML/1.7FL OZ), horizontal product extensions could quickly incorporate different packages sizes such as (1) a travel size (30ML/1.0FL OZ) and (2) a value size (100ML/3.4FL OZ)

– Fragrance: Line extensions could include different fragrances such as Skov (Forest), Hav (Sea), Bjerg (Mountain), Forelsket (Euphoria), and Steg (Rose). However, we look to avoid including too many different fragrances to reduce Hygge’s inventory management complexity and the risk of stock-out. include different fragrances, but avoiding including too many options to reduce inventory management complexity and therefore risk of out-of-stock in the point of sales.

– Purpose: Upon the success of Hygge Hand Cream, we intend to expand our line of hand creams to include variations with specific product purposes, such as hand cream’s for aging skin, night care, dry and cracked skin, and damage repair.

– Areas: An opportunity to expand our product line into new verticals such as face and foot creams is also a viable option. This will allow us to leverage economies of scale in our procurement process of raw materials and our manufacturing production.

– As there are many viable line extensions, our strategy is to expand into products that closely resemble our core product while offering other value add products (i.e. similar to Odacite or Henne)

Product and assortment Positioning and Branding Sales Channels and Visual

Merchandising Sales projections Operations

Assortment and Line Extensions

Hygge Hand Cream

Travel size (30 ML/ 1.0 FL OZ)

Hygge Hand Cream

Value size (100 ML/ 3.4 FL OZ)

Hygge Hand Cream

Night Repair

Hygge Hand Cream

Age Repair

Hygge Foot Cream

Hygge Body Cream

Hygge Face Cream

Hygge Hand Cream

Basic fragrances

Hygge Hand Cream

Seasonal fragrances (winter/summer)

Hygge Hand Cream

No fragrance

(50 ML/ 1.7 FL OZ)

Hygge Vegan Cream

Hygge Premium Cream

SizePurposes

Areas

Fragrances

Premium

formulations

Extensions

Core Product

Legend

Product and assortment Positioning and Branding Sales Channels and Visual

Merchandising Sales projections Operations

The customer Product and assortment Positioning and Branding

Sales Channels and Visual Merchandising

Sales projections Operations

– Customer of the Hygge Hand Cream will be mainly young adults who live in big cities and look for an easy way of nourishing hands and protecting them from harsh and dry conditions.

– These customers are professionals with very limited free time.

– They need a fast-absorbing hand cream, that allows them to nourish hands quickly, preferably with natural ingredients, in a moment that brings them coziness and tranquility.

– Finally, these customers also usually invest in activities to increase their well- being, like exercise and healthy food.

Product Competitive Positioning

– Branding strategy: boutique hand cream within “clean beauty” category

– Key factors of product differentiation: – Locally and sustainably sourced ingredients and packaging

– All-natural ingredients

– High quality product

– Competitive positioning: – By age group: millennials

– By channel: online (Hygge Website and beauty specialized stores), brick and mortar beauty specialized stores (i.e. Sephora), brick and mortar partnerships with SoulCycle and Lululemon

– By function: “repair” category

– Higher growth vs. anti-aging, whitening, and “overnight” hand creams

Product and assortment Positioning and Branding Sales Channels and Visual

Merchandising Sales projections Operations

Branding

– Hygge (pronounced “hoo-guh”) is descends from Danish culture and is used when acknowledging a feeling or moment, whether alone or with friends, at home or out, ordinary or extraordinary as cozy, charming or special.

– With this name, we not only aim to relate those characteristics to our product, but also believe that a simple word with such an extraordinary meaning will help build a strong brand.

– Our logo will not contain Hand Cream, as we feel this will undermine our ability to expand our offerings.

Product and assortment Positioning and Branding Sales Channels and Visual

Merchandising Sales projections Operations

Brand Equity

– Drawing inspiration from Scandinavia’s long history of wellness and self-care, Hygge’s goal is to build a reputation synonymous with these traditions.

– Our easily recognizable and memorable logo and our superior quality will help create brand equity and differentiate us from generic and mass produced hand creams, positioning us within the category that Henne and Odacite operate in.

– The quality, texture, and fragrance of Hygge products will offer customers protection that nourishes and moisturizes hands while leaving them with an incredibly pleasing sensory interaction.

Product and assortment Positioning and Branding Sales Channels and Visual

Merchandising Sales projections Operations

Brand Assets

1. Scandinavian Roots

2. A brand defined by coziness, warmth, and tranquility

3. Simple and elegant packaging

4. Natural and high-quality ingredients

5. Sold in stores synonymous with quality, health, and wellness.

6. Pleasant sensory interactions

7. Strong omni-channel strategy

Product and assortment Positioning and Branding Sales Channels and Visual

Merchandising Sales projections Operations

Value Creation Through Brand Equity

– The unique product that stimulates feelings of cozy and contentment while exuding the Scandinavian carefree way of living will have customers yearning for more.

– Hygge customers, through their interactions with this brand, will be seen as authentic and elegant.

– Customers will see Hygge as a brand that has a great knowledge of the product their creating and will feel rewarded for purchasing it.

Product and assortment Positioning and Branding Sales Channels and Visual

Merchandising Sales projections Operations

Sales Channels

1. Hygge Website

2. Other Online Retail Channels (i.e. Instagram Shop)

3. Beauty Specialized Stores

4. Well-Being Partnerships

Our long term vision, after having introduced our product to our targeted market segment and building brand awareness, is to expand into other retail channels such as high-end pharmacies, department stores, and Amazon.

Product and assortment Positioning and Branding Sales Channels and Visual

Merchandising Sales projections Operations

Sales Channels: Hygge Website

– Our goal in selling directly on the Hygge website is to leverage the benefits of the direct-to-consumer (DTC) channels.

– Allows us to offer “deals” such as free delivery to incentivize customers to purchase our goods as well as reward returning customers.

– DTC allow Hygge to increase our margin by reducing profit sharing via partnerships or forgoing the increased costs of selling through third party stores.

Product and assortment Positioning and Branding Sales Channels and Visual

Merchandising Sales projections Operations

Sales Channels: Other Online Retail Channels

– 200 million unique accounts visit at least one or more business profiles on Instagram, daily.

– Organic skin care is one of the fastest growing beauty product categories on Amazon, growing at 141% YoY in 2020.

– By selling through other online retail channels such as Instagram Shop or Amazon, we are able to build brand awareness and reach a broader customer base through targeted advertising campaigns.

– Additionally, selling on Instagram Shop and Amazon offers opportunities to showcase the Hygge product and highlight its unique benefits in some of the largest online market places.

Product and assortment Positioning and Branding Sales Channels and Visual

Merchandising Sales projections Operations

Sales Channels: Specialized Beauty Stores

– By selling through specialized beauty stores, Hygge is able to further expand its addressable market through an omni-channel sales strategy.

– Our target stores include Sephora and Bluemercury.

– The benefits include increased exposure to our target market, building brand awareness and equity, and having trained personnel that are able to advise customers on the benefits of Hygge Hand Cream.

Product and assortment Positioning and Branding Sales Channels and Visual

Merchandising Sales projections Operations

Sales Channels: Well-Being Partnerships

– By partnering with other Health and Wellness establishments that are frequented by our target customer base, Hygge can establish brand credibility and create brand awareness.

– Target partnerships include Yoga Studios, Cycling/Spin Studios, Barra Studios, Spas, and luxury Health & Wellness clothing brands.

– Products will be sold in the physical locations with a percentage of sales going to our partner brand.

Product and assortment Positioning and Branding Sales Channels and Visual

Merchandising Sales projections Operations

Packaging

– Hygge Hand Cream will initially be sold in a glass container in the size of 50ML/1.7FL OZ.

– Why Glass? – Glass exudes elegance and quality and aligns with our core

values of manufacturing with natural ingredients and in a sustainable and eco-friendly way.

– Cylindrical glass containers are sturdy and easily packable which reduces our logistical challenges. The glass containers can either be recycled or traded in for a discount on a customers next order.

– One of the assortment expansions is to provide different container sizes (travel and value size).

Product and assortment Positioning and Branding Sales Channels and Visual

Merchandising Sales projections Operations

Visual Merchandising

– Displays will be necessary in two of our three retail channels: beauty specialized stores and well-being partners.

– Displays will be compact and made of acrylic, so they are durable and can be easily placed in a visible and easily accessible locations within retail stores or partner locations.

– Once we expand the assortment, we need to expand the fixtures too, for a cream tower or mobile islands, es

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