BELLA BELLA COSMETICSCOSMETICS

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OUR COMPANYOUR COMPANY• Founded by John and Mary Bella 10 Founded by John and Mary Bella 10

years ago.years ago.

• First successful product was E-Z Hair.First successful product was E-Z Hair.

• Today, Bella Cosmetics has produced Today, Bella Cosmetics has produced over 30 different “High Tech” over 30 different “High Tech” products.products.

• Our mission is: create “high tech” Our mission is: create “high tech” products at lowest price.products at lowest price.

E-Z-NAILSE-Z-NAILS

E-Z-NAILSE-Z-NAILS• 10’’ long x 5’’ wide x 5’’ deep 10’’ long x 5’’ wide x 5’’ deep

electronic nail maker.electronic nail maker.

• Has a “beauty kit” attached to the Has a “beauty kit” attached to the machine with nail matrix, polish machine with nail matrix, polish supplies, and cuticle removers. That supplies, and cuticle removers. That lasts up to 8 uses.lasts up to 8 uses.

• All 5 fingers go inside the machine at All 5 fingers go inside the machine at the same time. Use is very simple.the same time. Use is very simple.

E-Z-NAILSE-Z-NAILS• Once inside, your nails will be Once inside, your nails will be 1.1. cut by an electronic laser, cut by an electronic laser, 2.2. cuticle will be removedcuticle will be removed3.3. nail will be polished, painted nail will be polished, painted 4.4. and finally will come out completely and finally will come out completely

dry.dry.• A regular manicure job takes 45 A regular manicure job takes 45

minutes.minutes.

E-Z-NAILS TAKES ONLY:E-Z-NAILS TAKES ONLY: 7 MINUTES7 MINUTES..

DEMOGRAPHICSDEMOGRAPHICS

• Bella Cosmetics is targeting E-Z NAILSBella Cosmetics is targeting E-Z NAILSas a product for the ENTIRE family. Middle as a product for the ENTIRE family. Middle and Upper Class. and Upper Class.

• From the teenage daughter to the From the teenage daughter to the grandmothergrandmother

• Even the father that needs to be Even the father that needs to be presentable at work can use itpresentable at work can use it

• A good ramification of our demographics A good ramification of our demographics would be single women that works and would be single women that works and also do not have time to go to hair also do not have time to go to hair saloons.saloons.

• The next 2 charts will describe more our The next 2 charts will describe more our demographics: demographics:

Male11%

Female89%

Market Ration by Ages

15 to 25 19%

25 to 35 41%

35 to 50 28%

50 & Up 12%

Place Place StrategyStrategy

•USA AND JAPANUSA AND JAPAN

• Typically busy families that need “high Typically busy families that need “high tech” products in order to save time.tech” products in order to save time.

• Good adaptation due to “high tech” Good adaptation due to “high tech” availability. availability.

• In these countries middle and upper In these countries middle and upper class families tend to consume “high class families tend to consume “high tech” products.tech” products.

Environmental Environmental ScanScan

• USA:USA: 1.1. Socially, Middle and Upper Class have great Socially, Middle and Upper Class have great

level of education. level of education.

2.2. Also these families have a high rate of Also these families have a high rate of acceptance for new technology products.acceptance for new technology products.

3.3. In terms of technological forces, USA has great In terms of technological forces, USA has great facilities that will make E-Z Nails easy to facilities that will make E-Z Nails easy to produce.produce.

4.4. Economically, USA has a very solid economy Economically, USA has a very solid economy and carry the status of a develop country.and carry the status of a develop country.

5.5. After a market research was done, Bella After a market research was done, Bella Cosmetics found NO competitor for E-Z Nails in Cosmetics found NO competitor for E-Z Nails in USA market.USA market.

6.6. USA gov’t gives a lot of incentives to new USA gov’t gives a lot of incentives to new “tech” products.“tech” products.

• JAPAN:JAPAN:1.1. Japanese people have one of the highest Japanese people have one of the highest

level of education in the world. level of education in the world. 2.2. Advanced technological facilities. Bella Advanced technological facilities. Bella

Cosmetics will take advantage by opening Cosmetics will take advantage by opening a local factory in OSAKA. (tax advantages)a local factory in OSAKA. (tax advantages)

3.3. Japan’s market for “high tech” products is Japan’s market for “high tech” products is treated as a necessity within its society.treated as a necessity within its society.

4.4. This generates, big sales and significant This generates, big sales and significant increases in company’s revenues.increases in company’s revenues.

5.5. There is NO competitor for E-Z Nails in There is NO competitor for E-Z Nails in Japan.Japan.

6.6. With the idea of opening a local plant in With the idea of opening a local plant in Osaka, Japan’s gov’t will give incentives Osaka, Japan’s gov’t will give incentives and support to Bella Cosmetics.and support to Bella Cosmetics.

WAGES AND WAGES AND RATESRATES

• Engineers and designers wages are Engineers and designers wages are considerably high.considerably high.

• The idea of Bella Cosmetics is to make The idea of Bella Cosmetics is to make partnerships with Universities in Japan partnerships with Universities in Japan and hire as part of staff, trainees and and hire as part of staff, trainees and recent graduate engineers.recent graduate engineers.

• With this concept, Bella Cosmetics is With this concept, Bella Cosmetics is seeking to a reduction of its fixed costs. seeking to a reduction of its fixed costs. Making E-Z Nails production line cheaper. Making E-Z Nails production line cheaper.

RELATED & SUPPORTING RELATED & SUPPORTING INDUSTRIESINDUSTRIES

• Bella Cosmetics will establish partnerships Bella Cosmetics will establish partnerships with other cosmetics companies for E-Z with other cosmetics companies for E-Z Nails replaceable “kits”.Nails replaceable “kits”.

• MAC, AVON, REVLON are examples of MAC, AVON, REVLON are examples of companies that will also manufacture our companies that will also manufacture our “kits”.“kits”.

• Using the Related & Supporting Industries Using the Related & Supporting Industries concept Bella Cosmetics will reduce and concept Bella Cosmetics will reduce and share risk and costs of the “kits” share risk and costs of the “kits” production line.production line.

• So, E-Z Nail’s consumer will buy the best So, E-Z Nail’s consumer will buy the best “kit” he or she thinks will meet his or her “kit” he or she thinks will meet his or her needs. needs.

DEMAND CONDITIONSDEMAND CONDITIONS

• After extensive research and surveys, the After extensive research and surveys, the demand conditions for E-Z Nails will be demand conditions for E-Z Nails will be spectacular; spectacular;

• First because there are NO competitors in First because there are NO competitors in the market.the market.

• Second, because E-Z Nails market share will Second, because E-Z Nails market share will be tremendous, due to the lack of be tremendous, due to the lack of competition. competition.

• Demand trends show that more “high tech” Demand trends show that more “high tech” products are being consumed among middle products are being consumed among middle and upper class families.and upper class families.

• Bella Cosmetics will make a strong publicity Bella Cosmetics will make a strong publicity of E-Z Nails. Specially relating our product of E-Z Nails. Specially relating our product with well known brands. ( Avon, Revlon, Mac)with well known brands. ( Avon, Revlon, Mac)

PROMOTIONPROMOTION

• Bella Cosmetics will be advertising E-Z Nails in Bella Cosmetics will be advertising E-Z Nails in four channels of communications:four channels of communications:

1.1. TelevisionTelevision2.2. MagazinesMagazines3.3. SupermarketsSupermarkets4.4. Web Site (www.bellacosmetics.com)Web Site (www.bellacosmetics.com)

• TVTV: afternoon and evening: afternoon and evening famous entertainment and comedy showsfamous entertainment and comedy shows1.1. Howard SternHoward Stern2.2. Fashion ShowsFashion Shows3.3. FriendsFriends4.4. SeinfieldSeinfield5.5. Movies PremiersMovies Premiers

• Example of TV AdvertisementExample of TV Advertisement

• Bella Cosmetics will use Julia Roberts as Bella Cosmetics will use Julia Roberts as its main image, to present E-Z Nails.its main image, to present E-Z Nails.

• She will demonstrate how E-Z Nails She will demonstrate how E-Z Nails should be used in day to day life.should be used in day to day life.

• Julia Roberts will also show how the kits Julia Roberts will also show how the kits are easy to use.are easy to use.

• MagazinesMagazines: Vogue, Cosmopolitan and : Vogue, Cosmopolitan and Nipponia will be the main advertising Nipponia will be the main advertising magazines to introduce our product.magazines to introduce our product.

• These magazines will have coupons These magazines will have coupons attached, in order to incentive people to buy attached, in order to incentive people to buy our product.our product.

• SupermarketsSupermarkets: K-Mart, Wall-Mart, Publix, : K-Mart, Wall-Mart, Publix, Japanese supermarkets will be our Japanese supermarkets will be our distributors.distributors.

• Consumers will have the chance to see and Consumers will have the chance to see and test E-Z Nails for free.test E-Z Nails for free.

• There will be a stand in each supermarket, There will be a stand in each supermarket, with live demos, and special deals in order with live demos, and special deals in order to attract compulsive buyers.to attract compulsive buyers.

• Fashion ShowsFashion Shows: Bella Cosmetics, will : Bella Cosmetics, will sponsor fashion shows in which E-Z Nails sponsor fashion shows in which E-Z Nails will be presented.will be presented.

• Coupons will be also available at these Coupons will be also available at these shows in order to increase and incentive shows in order to increase and incentive sales.sales.

S.W.O.TS.W.O.T

StrengthsStrengths1.1. Fits all hands’ sizes and shapesFits all hands’ sizes and shapes

2.2. Full Nail Job takes Full Nail Job takes 7 MINUTES!!!!!!, 7 MINUTES!!!!!!, compared to the usual 30-45 minutes compared to the usual 30-45 minutes taken by a regular manicure.taken by a regular manicure.

3.3. Price. Through extensive research, E-Z Price. Through extensive research, E-Z Nail costs only 10% of the average Nail costs only 10% of the average annual spending.annual spending.

4.4. Durable product. ( life time warranty).Durable product. ( life time warranty).

WEAKNESSESWEAKNESSES• The tradition of women going to hair The tradition of women going to hair

saloons is taken away.saloons is taken away.

• Some sort of unemployment can occur Some sort of unemployment can occur within the manicure career. within the manicure career.

• Loyalty of hair saloon customersLoyalty of hair saloon customers

OPPORTUNITIESOPPORTUNITIES

• The “kit” can be linked to other big The “kit” can be linked to other big cosmetic brands, generating extra cosmetic brands, generating extra revenue.revenue.

• The “kit” will create a new market The “kit” will create a new market segment because consumers will have to segment because consumers will have to buy it constantly.buy it constantly.

• Consumers will adopt the use of E-ZNails Consumers will adopt the use of E-ZNails as a habit, leading to extra uses within a as a habit, leading to extra uses within a month.month.

THREATSTHREATS

• Counterfeiting ( cheap imitation)Counterfeiting ( cheap imitation)

• The brand “E-Z Nails” can be The brand “E-Z Nails” can be associated with a lower quality and associated with a lower quality and unsafe product.unsafe product.

POSITIONINGPOSITIONING

• MAC Group Inc, positions retail outlets in 2 MAC Group Inc, positions retail outlets in 2 dimensions ( Breadth of product line + dimensions ( Breadth of product line + value added)value added)

• Low value and narrow line of products.Low value and narrow line of products.• Sold in major hair saloons, supermarkets Sold in major hair saloons, supermarkets

and through Bella Cosmetics web site. (and through Bella Cosmetics web site. (www.bellacosmetics.comwww.bellacosmetics.com))

• Pricing, store locations, atmosphere and Pricing, store locations, atmosphere and image are the most important points image are the most important points needed to be covered.needed to be covered.

PRICINGPRICING

• Markup, markdown and timing for Markup, markdown and timing for markdowns.markdowns.

• Markups: Original and maintainedMarkups: Original and maintained

• Final selling price of E-Z Nails is $150Final selling price of E-Z Nails is $150

• Final selling price of “kits” is $45. Final selling price of “kits” is $45. ( for 8 uses)( for 8 uses)

• 3 “kits” for $1103 “kits” for $110

LOCATIONLOCATION

• Central business centersCentral business centers

• Regional Shopping centersRegional Shopping centers

• Community Shopping centersCommunity Shopping centers

• Strip locationsStrip locations

• Bella Cosmetics web siteBella Cosmetics web site

• 3 Retail stores ( 2 in USA east and 3 Retail stores ( 2 in USA east and west cost; and one in Japan, Tokyo)west cost; and one in Japan, Tokyo)

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