DRAFT: This module has unpublished changes.

Marketing Strategy

The average American woman uses 12 health and beauty products every morning before leaving the house.[1] A study by the Environmental Working Group (EWG) has found that nearly 10,500 ingredients are used in personal care products with only 11 percent of the ingredients having been safety-tested, by an industry panel. And in 2005 the FDA issued a warning to the cosmetics industry, telling them to be more forthcoming to consumers about their ingredients.[2]  There is a global opportunity for Pachama Cosmetics to produce and sell vitamin-enhanced makeup because of two reasons:

 

1)    Women buy billions of dollars worth of makeup every year

2)    People worldwide are more interested in boosting their health.

 

By combining these two concepts, Pachama Cosmetics is perfectly positioned to introduce a line of high-end vitamin infused make products. The quality and price of our products will be comparable to other high-end brands on the market. Think of Pachama Cosmetics as Mac Cosmetics meets Vitamin Water, superb color and quality with wholesome enhancements.

 

A 2010 Study in The Journal of the American Academy of Dermatology has shown that vitamin A has a variety of beneficial effects in the body such as decreasing inflammation, helping the immune system and regulating growth of epidermal cells. It has been shown to reverse photo aging and reduce the appearance of wrinkles.[3] Vitamin A is also used as a treatment for acne. Vitamin C has antioxidant properties and may reverse the negative effects of UV radiation in the skin. UV exposure has been shown to significantly decrease levels of vitamin E in the skin. New research suggests vitamin B3 may be an effective treatment for skin conditions like acne and photo aging.

 

Pachama will develop a full line of makeup products including: Nail Polish, Eye Shadow, Lipstick, Natural Concealer/Foundation, and Blush.

As a global venture, Pachama will actively seek out suppliers that have access to responsibly obtained raw and refined materials, meaning they have as little negative impact on the environment as possible. Our focus will be to obtain economically priced supplies from the developing world because we believe these areas will provide a greater variety for raw materials.

 

Examples include:

  • Dyes based on cochineal beetles from South America. These safe dyes can be used in lipsticks and blush.
  • Carnauba wax, is obtained from the leaves of the Brazilian tropical palm tree, this natural beeswax can be used as a base for a variety of our products.
  • Fish based Guanine, a coloring material used in eye shadow and nail polish.

Exact ingredients will be determined after the formulation stage of our development but the availability and range of possible components is extensive.

Product Launch

Our first priority after product development will be to hire a public relation firm to coordinate our launch event. The Alison Brod Agency, New York City, has extensive experience promoting cosmetics and beauty products. Pachama will use multiple channels to publicize.

  1. A mix of press releases, feature stories, management Q&A sessions, product reviews and byline articles will roll out over three-to-four months from the launch date.
  2. Generating content by making use of independent surveys and data to validate our products critical need in the cosmetics market. This includes hiring a professional writer to create advertorials, and producing a viral video campaign.
  3. Exploiting traditional media by soliciting analysts, press, and bloggers to review our products

Following our initial product launch we have plans to lease retail kiosks in shopping malls located in strategic markets. Pachama’s kiosk will display custom signage, branded shopping bags, literature and marketing materials. Each kiosk will be staffed by one part-time employee and a licensed makeup artists or aesthetician hired on a rotating basis to demonstrate the uses of Pachama’s product to the public.

 

Initial kiosk locations:

  • New York: Manhattan (South Street Seaport), White Plains (The Westchester)
  • New Jersey (The Mall at Short Hills)
  • Connecticut: Stamford (Stamford Towne Center), Westfield (Westfarms Mall)

Although retail is a very difficult entry point for a startup cosmetics company, we feel that with steady growth and customer interest, Pachama should make an effort to break into that market. With more than 3000 retail stores worldwide, like Nordstrom, Bloomingdales, Whole Foods (Whole Body), Saks Fifth Avenue, Harrods of London, and Sephora, there is plenty of growth opportunity for our brand. By introducing our product at beauty, cosmetics, and fashion trade shows we will take advantage of networking opportunities. Major retail buyers from across the world attend these tradeshow regularly. We will target specific retail buyers from national and international chains by providing samples, marketing material, and sales data packaged together.

 

Cultural/Legal Issues

Language and marketing barriers may present a significant problem with respect to finding suppliers and marketing to potential customers outside the U.S. Our e-commerce solution will address language issues by providing a shopping cart in multiple languages.

Legal Barriers may exist with respect to the importation and export of certain raw materials. Pachama will retain legal counsel to research tax laws, customs laws, import restrictions, corporate organization, and liability laws.

 

Promotion and Advertising

Key to achieving our sales goals will be creating brand awareness and gaining market share. Social media and online advertising will be used to promote Pachama Cosmetics as a lifestyle brand. Our web portal will be a place where young women can create a personal profile, where she can track purchases, share beauty tips, and exchange ideas about our cosmetic products. We intend to nurture a relationship with our customers via social media using the following strategy:

  1. Creating a unique Facebook shopping experience making it easy for customers to browse and purchase products without being re-directed outside of Facebook.
  2. Allowing interactive wall posts dialogue about product-specific content to our followers
  3. Using hashtag reviews through Twitter. We will run daily giveaways, offer exclusive promotions, and discounts to reward fans for re-tweeting and liking us.

Celebrity Endorsement

Through his career Larry Strong has maintained many contacts in the entertainment industry, including United Talent Agency (Los Angeles), The Gersh Agency (New York), YouTube, and artist representatives. Pachama Cosmetics intends to use these inroads to creatively integrate celebrity endorsements within our social media campaign. A strategy Larry has had success with in the past has been to build associations with young actors and music performers who have a large fan-base, Twitter followers, and Facebook friends/likes that represent our target demographic. His work in film has included building relationships with influential artists and we intend to take advantage of those contacts.


[1]  What's on Your Face? Ten Most Toxic Cosmetics By Courtney Dentch - Dec 2, 2011 http://www.bloomberg.com/slideshow/2011-12-01/what-s-on-your-face-ten-most-toxic-cosmetics.html

[3] Vitamins and photo-aging: do scientific data support their use?, Journal of the American Academy of Dermatology 2010, http://www.ncbi.nlm.nih.gov/pubmed/20189681

DRAFT: This module has unpublished changes.