IT Cosmetics is a color cosmetics and skincare brand founded in 2008 by Jamie Kern Lima. It was acquired by L'Oreal in 2016 for $1.2 billion. IT Cosmetics focuses on developing clinically-proven, problem-solving products using innovative technology and skin-loving ingredients. Their target customer is women ages 25-60 seeking products that empower them to look and feel their most beautiful. Entering the Japanese market provides opportunities due to its size and consumer interest in beauty, though adjustments must be made to distribution, focus on skincare and natural ingredients, and packaging to suit Japanese preferences.

1. In
Japan
Sarah Langenbach, Yung Jung Chang, Bridget
Retana, Kenia Ramirez & Jordyn Ferriss

2. ★ “IT” = Innovative Technology
★ Co-founded by Jamie Kern Lima in Studio City,
California in 2008, after quitting her job as a local
news anchor.
★ Developed by leading plastic surgeons and
dermatologists
★ Never tested on animals
★ Acquired by L’Oreal in July 2016 for $1.2 billion -

3. Story of Co-Founder Jamie Kern Lima
★ A former news anchor, Lima had struggled with her
rosacea, hyperpigmentation, and lost her eyebrows
in her thirties - she decided to create a product to
help her and others with skin issues.
★ She caught the attention of QVC with her
innovative products, especially the “Bye Bye
Undereye Concealer”.
★ Starting with five employees and revenues of $1
million in its first year, today Lima’s staff has grown
to a team of 60 and annual earnings of more than
$100 million.

4. Who is IT Cosmetics?
EmpoweringAuthentic
InnovativeMultifunctional

5. Mission Statement
“Innovative Technology is IT. Developed
with leading plastic surgeons, IT Beauty®
creates clinically proven, innovative
problem-solving makeup and skincare
products that harness cutting edge, anti-
aging technologies and high
performance, skin-loving ingredients to
provide you with serious beauty
solutions that help you look and feel your
most beautiful!”

6. Brand Positioning
★ Jamie looked to create a cosmetic brand that
wasn’t an artistry brand or focused on the
number of shades available per product
★ She seeked to solve real problems that people
like herself have had for years but have never
found a solution to
★ Products are clinically proven to help support
testimonies
★ Good-for-your skin ingredients
★ Innovative technology

7. Current Advertising and Marketing
Strategy★ Direct interactions with customers
○ Broadcast Television (QVC)
○ Active Social Media
○ In store events with IT Cosmetics makeup
artists
★ Exclusive products and sets for specific
distribution channels
★ Video tutorials for every product by Jamie
○ Straightforward product benefits and easy to follow

8. Target Customer
★ IT Girl
★ Psychographic: Women who have real
beauty problems and seek products
that will give them that “most
beautiful” feeling
★ No specific ethnicity targeted
★ Demographic: Women ages 25 - 60 (
core 30-50 years old)
★ Income $50,00 and over

9. Product Portfolio
★ Anti-Aging
★ CC - Color Correcting
★ Illuminating
★ Full-Coverage, Clinically proven not to crack
★ SPF 50+ UVA/UVB Protection
FEATURED IN TOP 10….
Your skin but better CC+ Cream
with SPF 50+ $38.00

10. Product Portfolio
★ Anti-Aging
★ Pore minimizer
★ SPF 50+ UVA/UVB Protection
★ Clinically proven measurable skin hydration increase
FEATURED IN TOP 10….
Confidence in a Cream
$48.00

11. Product Portfolio
★ Infused with hydrating Anti-Aging Ingredients
★ Multi- purpose
★ Long wearing
★ CC- Color Correcting
INNOVATIVE PRODUCT...
Lip Flush 4-in-1 Reviver Lipstick
$20.00
Formulated with IT Cosmetic Hydra-LuxeTM
Technology

12. Product Portfolio
★ Anti-Aging
★ Talc-Free Shadows
★ Clinically Proven Long-wear
★ Multi-function
FEATURED IN TOP TEN….
Superhero Eye Transforming Anti-
Aging Super Palette $42.00
Formulated with Superhero Pigment Technology

13. Product Portfolio
★ Anti-Aging infused
★ Brow conditioning
★ Formulations adhere to skin to mimic real hair
appearance
FEATURED IN TOP 10…..
Brow Powder Universal
Eyebrow Pencil $24.00
Active brow enhancing Technology

14. Product Portfolio
★ 100 % Cruelty Free
★ Hygienic
★ Soft bristles; great for sensitive skin

15. Product Portfolio

16. Distribution
Channels
★ Sephora
★ ULTA
★ QVC
★ E-Commerce
★ USA, UK, Canada

17. IT Cosmetics and QVC
★ QVC is set apart from the traditional brick
and mortar retail model. “It’s the equivalent
of being able to change your storefront
windows based on what the customer is
telling you she wants as soon as she comes
in,”
★ Lima is remembered for taking off all her
makeup on air, showing her rosacea and
putting it back on to show the power of her
products.

18. In Store Experience:
★ Brush Bar
★ Exclusive Brushes for
ULTA
★ Top 5 products on
top shelf
★ Descriptive: tells you
what everything is for
and why
★ In Store events with
IT Cosmetics makeup
artists

19. In Store Experience:
★ Exclusive products
for Sephora
★ Cohesive brand
image with similar
fixtures in both ULTA
and Sephora
★ Larger focus on
skincare products
★ In store events

20. Beauty and Personal Care Industry
★ The U.S. has the largest revenue in the beauty and personal care industry,
exceeding $80 million USD.
★ IT Cosmetics falls into two categories within the beauty sector; color cosmetics and skincare. This is
due to the dual-action nature of their products, that have both skincare and aesthetic benefits.
Source: Euromonitor

21. Color Cosmetics Market
★ The color cosmetics market in the U.S. generated nearly $17 billion 2015. The
USA is the largest color cosmetics market worldwide.
Source: Euromonitor

22. Leading Brands in Color Cosmetics
★ The leading company in the U.S. color cosmetic market is the L’Oréal Groupe, IT Cosmetics’ parent
company.
★ The remaining top 4 brands are Estée Lauder Companies, P&G, Revlon, Shiseido. The leading brand in
the U.S. is Maybelline, owned by L’Oréal. The remaining top 4 brands are MAC, Cover Girl, L’Oréal
Paris, and Clinique.
Source: Euromonitor

23. Skincare Market
★ The skincare market in the U.S. generated nearly $16 billion in 2015, and is the
second largest skincare market, second to China’s $25 billion.
Source: Euromonitor

24. Leading Brands in Color Cosmetics
★ The leading company in the U.S. skincare market is Johnson & Johnson., with the second being L’Oréal
Groupe. The remaining top 3 are Estée Lauder, L Brands, and Unilever.
★ The leading brand is Neutrogena, owned by J&J, with the remaining top 4 being Olay, Bath & Body
Works, and Clinique.
Source: Euromonitor

25. Trends In Color Cosmetics
★ According to WGSN, some of the leading trends for the color cosmetics market
within the next 2 years will be “no-makeup” makeup, dewy and glowing skin,
earth tones, natural and full brows, jewel tones, etc.
Source: WGSN

26. Trends In Skincare
★ According to WGSN, some of the leading trends for the skincare industry for
the next 2 years will be antioxidants, technology, innovative new ingredients,
all-in-one products, and skincare as makeup.
Source: WGSN

27. Where IT Cosmetics Fits In
★ Since IT Cosmetics is owned by L’Oreal, the leading color cosmetics
company in the U.S., they have an advantage over their competitors.
They will have the resources, both financial and marketing-wise, to
become one of the top beauty brands in the L’Oreal portfolio if they
stay on-trend and focused. In relation to color cosmetic trends, IT
offers the “no-makeup” makeup look with their product line, and their
eyeshadow palettes align with trend forecasts for the upcoming
seasons.
★ IT Cosmetics could be seen as behind in relation to companies who
have their main focus on skincare and not both skincare and color
cosmetics. They could expand their skincare line or shift the focus to
be completely on one category to be at the top of the market. In terms
of trends, IT is doing well with their innovative ingredients, skincare as
makeup, and all-in-one products.

28. Market Performance
★ According to Bloomberg, IT Cosmetics
“increased sales 56 percent to $182 million in the
12 months ending in June.”
★ They have grown enormously in the U.S. and
Canadian market, coming from having only $1
million in revenue in 2010.
★ The article goes on to say that the brand “has
earned the devotion of its highly engaged
consumers and sees potential for significant
growth in the years to come.”

29. Competitive Analysis & Price Strategy

30. Brand Positioning

31. Website
Informative & functional
★ Online Shop
★ Membership and discount
information
★ IT on TV (QVC)
★ About
★ The result
★ IT news on Press

32. Social Media
★ Facebook
★ Twitter
★ Snapchat
★ Instagram
★ Youtube
★ Pinterest

33. Customer Experience Online
★ Website is very informative and user-friendly
★ Due to the name of the company “IT Cosmetics”, Google searches often show
other irrelevant cosmetic companies or information.

35. Opportunity for IT Cosmetics in Japan
★ Japan’s market size for beauty and personal care products
account for about 30% of the Asia Pacific market.
★ Japan can be considered as a “gateway” to other Asian
markets as success in the Japanese market can raise
product/brand profile and visibility
★ The Japanese consumer’s has high interest in beauty and
health
○ Traditionally more interested in skincare as the skincare segment
accounts for the largest share of the market
○ Japanese consumers are highly aware of brand image and quality.

36. Japan Market size
★ The top cosmetics and personal care
segments are skin and sun care in Asia
Pacific
★ Japan is the highest revenue region for
cosmetics in the Asia Pacific region
★ Kanto region, which includes the national
capital Tokyo and Yokohama, was the
largest consumer market in the country. T
○ high disposable income, advanced
manufacturing capabilities, and highly
specialised scientific skills among the workforce
Japan Beauty and Personal Care Market
Growth from 2015 - 2020

37. Japan is the 3rd
Largest Market for
Beauty and Personal
Care

38. Skincare Concerns of
Japanese Consumers

39. Japan Market Performance
★ Weaken Yen attracts foreigners to the country
and towards Japanese brands
○ Also encourages Japanese consumers to shop locally, in
their own country
○ This benefited premium beauty and personal care,
which had a 1% growth in 2015 over the past year
○ Weak Yen also encourages foreign investment
★ Major influx of tourism
○ Inbound tourist numbers reached a record high of 19.7
million in 2015, growing by 47% over the previous year.
Spending by these tourists meanwhile rose by 72% in
the year.

40. Social Environment
★ The third largest income country
with high discretionary spending
★ Large Aging Population
○ High discretionary income
○ Median Age: 47-years-old in
(2015)
○ Those aged 65-years-old and
over accounted for 27% of the
total population

41. Political & Economic Environment
★ Weak/deflated currency (yen)
★ High tourism
○ Inbound tourist numbers reached a
record high of 19.7 million in 2015,
growing by 47% over the previous year.
Spending by these tourists meanwhile
rose by 72% in the year.
★ Japan increased the multiple-entry visa
period to 10 years for travellers from India,
Vietnam, China and Russia.

42. Japan Market Trend Analysis
★ Growing focus on attracting tourists
within beauty and personal care
○ Rise of of Duty-free counters in Japan in
health and beauty specialist retailers.
★ Focus on online and mobile marketing
as well as internet retailing
★ Aging population is an opportunity to
develop new lines and innovate
products for the 50+ year old
demographic.
★ Increased use of “Natural” ingredients

43. Japan Market Trend Analysis
★ The Japanese customer endeavour to enhance
their natural beauty
○ Desire for bright, dewy, and radiant skin
★ The strongest growth across overall beauty and
personal care was in face masks with a 7%
increase.
★ Customer driven new product development
○ Take customer concerns into consideration
★ Digitally advanced consumers

44. Top Beauty Brands in Japan
★ Shiseido
★ Kosè
★ Kanebo
★ DHC
★ Pola
★ SK-II

45. Opportunity in Japanese Market
Foreign Native
High Price
Low Price

46. SWOT Analysis on IT Cosmetics
★ Strengths
○ Owned by a large worldwide parent company, L’Oreal.
○ Vast product range with large emphasis on ingredient quality and functionality of product.
○ Appealing image to the Japanese consumer; clean, clinical, fresh, fun, sleek.
★ Weaknesses
○ Hands-on selling approach, which is not as common/welcomed in Japanese market.
○ Color cosmetics line borders on skincare, making import process more difficult.
★ Opportunities
○ Japan has the 4th biggest beauty and personal care market in the world.

47. SWOT Analysis on Japan

48. Legal and regulatory issues
★ Cosmetics are regulated by the Ministry of Health, Labour and Welfare (MHLW) under the Pharmaceutical Affairs Law
(PAL). For legal purposes, beauty products are divided into quasi-drugs (products that have minimal to moderate
pharmacologic activity but are restricted in use to specific indications) and cosmetics.
★ Cosmetics are divided into 6 different categories:
★ However, because IT Cosmetics claims anti-aging benefits in most products it could be classified as quasi-drugs.
★ To be able to import, there needs to be forms filled out ; a Manufacture and Sales of Cosmetics Notification, a
Cosmetics Import Notification for Manufacture and Sales and the manufacturer’s or importer’s brand name.
★ Advertising and labeling for cosmetics are regulated by law, which details labeling guidelines for containers or
packaging, and certain items that may not appear in the labeling.

49. Legal and regulatory issues cont.
★ According to the PAL, any importer that engages in the final
packaging, labeling in the Japanese language, or storage of the
imported product, is required to obtain a cosmetic
manufacturer's license.
★ Importers are required to properly evaluate their production
management and quality control of cosmetics to be
distributed. importers are required to properly evaluate their
production management and quality control of cosmetics to
be distributed.
★ In Japan, sunscreens are classified as quasi-drugs, therefore,
they require approval of their formulations, ingredients, use
levels and functionalities, in addition to stability testing and a
certificate showing no animal-derived materials were used.

50. Organizational Structure and Global Supply Chain
★ IT Cosmetics is under
L’Oreal’s luxury product
department
★ The manufacturing will be
done with L’Oreal’s
manufacturers in Japan
★ Work with local suppliers
to obtain ingredients local
to the Japanese market,
aligning with our entry
strategy

51. Pricing
★ Prestige Pricing
○ High price=High Quality
○ The price of products somewhat higher than similar products
★ Competitor Prices
It Cosmetics Shiseido YSL Jill Stuart DHC Clinique
Je Ne Sais Quoi™ Lip
Treatment
2841.05 ¥
BENEFIANCE Full
Correction Lip
Treatment
4261.57 ¥
VOLUPTÉ SHEER
CANDY
4379.95 ¥
Fruit Lip Balm N
1500 ¥
DHC Lip Cream
947.02 ¥
Repairwear™ Intensive
Lip Treatment
3314.56 ¥

52. Our Entry Strategy for Japan
★ Pricing will remain similar to U.S. pricing; affordable luxury and technology. The
highest priced product will be the 7600 JPY with the Bye Bye Foundation Full
Coverage Moisturizer and the lowest will be 1761 JPY with the Your Skin But Better
CC+ Cream. While many Japanese consumers are turning to more affordable goods,
there is still an emphasis on spending on cosmetics, making Japan the 4th largest
cosmetics sector worldwide.
★ The distribution strategy will be changed to conform to Japanese buying habits.
According to McKinsey & Company, the Japanese consumer is changing and aligning
more with the American and European consumer in terms of shopping from home and
buying cheaper alternatives.
★ A less hands-on approach to selling IT Cosmetics will be needed in Japan. According to
a 2009 survey by MyVoice Japanese consumers are “turning away from department
stores. They cited expensive products, “annoying staff,” and an “inability to shop at my
own pace.”” We will focus on creating and constantly improving our Japanese version
of our online site, as well has having standalone “pop-up” type shops for the consumer
to browse at their leisure.

53. Necessary Adjustments
★ Upon entering the Japanese market we will expand our skincare line first and foremost. This line extension will include
popular Japanese products such as masks and essences, which are top sellers from competitors SK-II and Shiseido.
★ We will adjust the focus of our advertising, packaging, website copy, etc., to reflect an emphasis on ingredients. Japanese
consumers are interested in the benefits of the product and want to know the components upfront.
★ In addition to pushing our ingredients, we will also adjust our packaging for the Japanese market. A cleaner, less-wordy,
and sleeker packaging will do better with the Japanese consumer. This change would most likely be implemented on
secondary packaging versus the container the product is in. We will also add Japanese translation on packaging when
necessary.

54. Comparing Current & New Market Communication
Home Shopping &
Broadcast Television
e-Commerce
In Person
Retail
Experience
Increased Digital
Communication
Specialty Store
Distribution
US Market Japan Market
Social Media
Pop-up Shop
Vending Kiosks
Exclusive Products
Magazine Ads
Mobile App Ads
Easier Shoppablity
through mobile
apps
More Japanese
Centered Products

55. Product Portfolio for Japan
★ New, innovative products geared towards the Japanese
consumer
○ Anti-aging benefits to target older consumers
○ Face Masks (ex. sheet masks and packs)
■ Masks products are experiencing the largest amount of growth
currently
○ Cleansing products
■ Cleansing is an essential and important step in the Japanese skincare
routine which is being influenced by the Korean 10 step skincare
regimen.

56. Advertising/Marketing Strategy
★ Tone: Feminine. Pink. Clinical
★ Message: “Your skin, but better! Skin-loving ingredients
provide you with serious beauty solutions that help you look
and feel your most beautiful!”
★ Unique selling proposition:
○ Skincare infused color cosmetics that offer multiple benefits
○ Formulated with plastic surgeons
★ Have a spokesperson that is more relatable for the
Japanese consumer.

57. Magazine/Digital Ad
★ Partner with Japanese model Tao Okamoto to relate to
Japanese consumer
★ Can be digital or print and also adapted to a banner ad

58. Pop-up shops & Vending machines
★ Seasonal pop-up shops in
Tokyo
○ Ginza shopping district
★ Several vending machines at
important commute stations
○ Haneda and Narita Airport
○ Ginza, Shibuya, Omotesando
Shopping Districts
○ Vending machines in Japan are
a very popular way to sell
product and have been utilized

59. Other Channel: Seven Eleven
★ Limited edition items in iBon pre-
order catalog
○ Brush set
○ Holiday gift
★ Selected items in Seven Eleven
○ Lip balm
○ Travel size makeup remover

60. Why 7-11
★ Leading convenience store in Japan
★ Everywhere in Japan
★ Cosmetics sales is increased in
convenience stores
★ Open 24-7-365
★ Easily accessible for working
women
★ Women purchase the products of a
trustful manufacturer
Other brands in convenience stores:
★ Kose
★ Fancl
★ Muji
★ Kanebo cosmetics-MFC
7-11 global stores

61. Advertising Channels
★ Digital magazines
★ Mobile ads & IT cosmetics app
★ Beauty channels’ cosmetics
sponsor
★ E-mail marketing
★ Organic & paid social media
★ Retargeting marketing
Sustainability & Green concern
Paperless marketing
Rely on digital marketing

62. Digital Customer in Japan
★ Digital purchase is
growing in Japan
★ Mobile devices plays an
important role for e-
commerce and digital
marketing.

63. Digital Campaign Strategy
Online
★ Paid & organic social media
○ Line
○ Facebook
○ Twitter
★ Retargeting
★ Keyword search
★ Video hosting sites
Mobile
★ Mobile app ads
★ Itcosmetics mobile app
○ Shopping card
○ Product detail & review
○ Payment
○ Membership reward
○ Tarot reading
Email
★ Birthday card,
★ E-giftcard,
★ Newsletter

64. How to Reach our Consumer
★ Social Media:
Beauty Bloggers
★ Keyword search
★ Mobile app ad
★ Social media ad
★ Retargeting
★ Organic & Paid Social media
★ Mobile App
★ Email marketing
★ Retargeting
★ Organic social media
★ Mobile App
★ Email marketing
★ New product & usage
★ Social media: beauty bloggers
★ Keyword search
★ Email marketing

65. Key Factors Influencing Consumer
★ Social Media Marketing
★ Beauty Channel sponsor
★ Retargeting
★ Friends & family recommendation
★ TV ad & Beauty expert
★ Online user review

66. How to Achieve a Successful Launch in
Japan★ Focus on digital and mobile marketing
channels
○ Thoughtful IT Cosmetics app for female
customers
★ New products that are more relatable for
the Japanese consumer
★ Selected items in the leading convenient
stores to offer wider distribution
★ Adjust positioning to be more relatable to
the Japanese market

67. Works Cited
“Beauty Survey: Introductory Insights”. Passport. April 2016. Web Database.
“Beauty and Personal Care in Japan: Industry Overview”. Passport. 14 June 2016. Web Database
“Asia-Pacific Cosmetics Market is Expected to Reach $126.8 Billion, by 2020.” PR Newswire. 9 June 2015. Web Article.
“Cosmetic Market in Japan: Key Research Findings 2015”. Yano Research Institute. 9 October 2015. Web.
RANNOU, Erwan. “Japanese Cosmetics Market Obstacles and Opportunities for European SMEs”. EU-Japan Centre for
Industrial Cooperation . March 2015 . Web.
Upadhyay, Rakesh. "US Dollar To Yen Forecast: The 2017 USD JPY Exchange Rate To Rally To 120 And Higher." Exchange
Rates UK - Currency Forecasts, News and Analysis. 15 Dec. 2016. Web. 15
Jacques", "Renee. "How the Founder of It Cosmetics Went From Being a News Anchor to Leading a $1.2 Billion Makeup Company." Allure.
N.p., 13 Aug. 2016. Web. 15 Dec. 2016.Jacques", "Renee. "How the Founder of It Cosmetics Went From Being a News Anchor to Leading
a $1.2 Billion Makeup Company." Allure. N.p., 13 Aug. 2016. Web. 15 Dec. 2016.

68. Works Cited
Erwan, RANNOU. "Guidebook for Exporting/Importing Cosmetics to Japan." EU-Japan Centre for Industrial Cooperation.
Minerva Research, Jan. 2015. Web. 9 Dec. 2016.
Turner, Nick. “L’Oreal Agrees to Buy IT Cosmetics for $1.2 Billion in Cash.” Bloomberg. 22 July 2016. Web. 13 December 2016
“Digital Consumer – Connected Commerce: Japan Country Briefing" Passport. June 2016. Web Database.
“Key Factors Influencing Beauty and Personal Care Purchases” Passport. July 2014. Web Database.
"Top Skin Care Needs of Chinese and Japanese Consumers 2013." Statista - The Statistics Portal. Statista. March 2013. Web. 15
Dec 2016.
Salsberg, Brian. "The New Japanese Consumer." McKinsey & Company. N.p., Mar. 2010. Web. 10 Dec. 2016.
Turner, Nick. "L'Oreal Agrees to Buy IT Cosmetics for $1.2 Billion in Cash." Bloomberg.com. Bloomberg, 22 July 2016. Web. 10
Dec. 2016.
"IT Cosmetics | Makeup, Skincare & Brushes For Your Most Beautiful You!" IT Cosmetics | Makeup, Skincare & Brushes For Your Most
Beautiful You! N.p., n.d. Web. 15 Dec. 2016.

69. Project Work Distribution
★ Sarah
○ Brand Identity and History (slides 2-6,8), Current Ad and Marketing Strategy, Identify global white space opportunities for brand expansion, IT Cosmetic and QVC, In
store experience Ulta and Sephora, Provide rationale for market selection, Market description: size, performance, trends, Social, economic, cultural, political
environment (Slides 34-44), New product portfolio for japan, Comparing new and current marketing communication
★ Jordyn
○ Beauty and Personal Care/Skincare/Color Cosmetics Industries, Leading Brands, Trends, Where IT Cosmetics Fits, Market Performance, Competitive Analysis, Brand
Positioning, SWOT Analysis, Entry Strategy, Necessary Adjustments, Magazine Ad
★ Bridget - Brand Positioning, Target Market, Product Portfolio
★ Kenia- U.S. Distribution, Legal & Regulatory issues for Japan, Japan competitive landscape, pricing.
★ Yung Jung
○ Website, Social Media, Consumer Experience Online, What type of merchandising and POS material do you plan on using?, What types of advertising vehicles do you
plan on using (TV, print, mobile, etc.)?, What will your advertising be like? Key Factors Influencing Consumer, How will you build a strong digital campaign on the web and
mobile? How will you reach your customer? Organizational Structure and Global supply chain, advertising channels, Digital consumer trends in Japan

70. Short Version

71. In
Japan
Sarah Langenbach, Yung Jung Chang, Bridget
Retana, Kenia Ramirez & Jordyn Ferriss

72. “IT” = Innovative Technology
Co-founded by Jamie Kern Lima in Studio City, California
in 2008, after quitting her job as a local news anchor.
Developed by leading plastic surgeons and
dermatologists
Never tested on animals
Acquired by L’Oreal in July 2016 for $1.2 billion - its
largest acquisition in 8 years
S

73. Mission Statement
“Innovative Technology is IT. Developed
with leading plastic surgeons, IT Beauty®
creates clinically proven, innovative
problem-solving makeup and skincare
products that harness cutting edge, anti-
aging technologies and high
performance, skin-loving ingredients to
provide you with serious beauty
solutions that help you look and feel your
most beautiful!”
K

74. Who is IT Cosmetics?
EmpoweringAuthentic
InnovativeMultifunctional
S

75. Brand Positioning
★ Jamie looked to create a cosmetic brand that
wasn’t an artistry brand or focused on the
number of shades available per product
★ She seeked to solve real problems that people
like herself have had for years but have never
found a solution to
★ Products are clinically proven to help support
testimonies
★ Good-for-your skin ingredients
★ Innovative technology
B

76. Brand Positioning
J

77. Target Customer
★ IT Girl
★ Psychographic: Women who have real
beauty problems and seek products
that will give them that “most
beautiful” feeling
★ No specific ethnicity targeted
★ Demographic: Women ages 25 - 60
(core 30-50 years old)
★ Income $50,00 and over
B

78. Current Advertising and Marketing
Strategy★ Direct interactions with customers
○ Broadcast Television (QVC)
○ Active Social Media
○ In store events with IT Cosmetics makeup
artists
★ Exclusive products and sets for specific
distribution channels
★ Video tutorials for every product by Jamie
○ Straightforward product benefits and easy to follow
S

79. Distribution
Channels
★ Sephora
★ ULTA
★ QVC
★ E-Commerce
K

80. It Cosmetics Online
★ Website is very informative and user-friendly
★ Due to the name of the company “IT Cosmetics”, Google searches often show
other irrelevant cosmetic companies or information.
C

81. Beauty and Personal Care Industry
★ The U.S. has the largest revenue in the beauty and personal care industry,
exceeding $80 million USD.
★ IT Cosmetics falls into two categories within the beauty sector; color cosmetics and skincare. This is
due to the dual-action nature of their products, that have both skincare and aesthetic benefits.
J

82. Color Cosmetics Market
★ The color cosmetics market in the U.S. generated nearly $17 billion 2015. The
USA is the largest color cosmetics market worldwide.
J

83. Trends In Color Cosmetics
★ According to WGSN, some of the leading trends for the color cosmetics market
within the next 2 years will be “no-makeup” makeup, dewy and glowing skin,
earth tones, natural and full brows, jewel tones, etc.
J

84. Skincare Market
★ The skincare market in the U.S. generated nearly $16 billion in 2015, and is the
second largest skincare market, second to China’s $25 billion.
J

85. Trends In Skincare
★ According to WGSN, some of the leading trends for the skincare industry for
the next 2 years will be antioxidants, technology, innovative new ingredients,
all-in-one products, and skincare as makeup.
J

86. Where IT Cosmetics Fits In
★ Since IT Cosmetics is owned by L’Oreal they have an advantage over
their competitors.
★ They will have the resources, both financial and marketing-wise, to
become one of the top beauty brands in the L’Oreal portfolio if they
stay on-trend and focused.
★ IT offers the “no-makeup” makeup look with their product line, and
their eyeshadow palettes align with trend forecasts for the upcoming
seasons.
★ IT Cosmetics could expand their skincare line or shift the focus to be
completely on one category to be at the top of the market.
★ In terms of trends, IT is doing well with their innovative ingredients,
skincare as makeup, and all-in-one products.

87. Product Portfolio
★ 200 Color Cosmetic Skus + Skincare
B

88. Product Portfolio
B

89. Competitive Analysis & Price Strategy
J

90. Market Performance
★ According to Bloomberg, IT Cosmetics
“increased sales 56 percent to $182 million in the
12 months ending in June.”
★ They have grown enormously in the U.S. and
Canadian market, coming from having only $1
million in revenue in 2010.
★ The article goes on to say that the brand “has
earned the devotion of its highly engaged
consumers and sees potential for significant
growth in the years to come.”

92. Opportunity for IT Cosmetics in Japan
★ Japan’s market size for beauty and personal care products
account for about 30% of the Asia Pacific market.
★ Japan can be considered as a “gateway” to other Asian
markets as success in the Japanese market can raise
product/brand profile and visibility
★ The Japanese consumer’s has high interest in beauty and
health
○ Traditionally more interested in skincare as the skincare segment
accounts for the largest share of the market
○ Japanese consumers are highly aware of brand image and quality.
○ Particular interest in skincare products that are high performing andS

93. Japan is the 3rd
Largest Market for
Beauty and Personal
Care
S

94. Japan Market Performance
★ Weaken Yen attracts foreigners to the country
and towards Japanese brands
○ Also encourages Japanese consumers to shop locally, in
their own country
○ This benefited premium beauty and personal care,
which had a 1% growth in 2015 over the past year
○ Weak Yen also encourages foreign investment
★ Major influx of tourism
○ Inbound tourist numbers reached a record high of 19.7
million in 2015, growing by 47% over the previous year.
Spending by these tourists meanwhile rose by 72% in
the year.S

95. Japan Market Trend Analysis
★ Growing focus on attracting tourists
within beauty and personal care
★ Focus on online and mobile marketing
as well as internet retailing
★ Aging population is an opportunity to
develop new lines and innovate
products for the 50+ year old
demographic.
★ Decrease in children and increased
spending per child by parents and
grandparents.
S

96. Top Beauty Brands in Japan
★ Shiseido
★ Kosè
★ Kanebo
★ DHC
★ Pola
★ SK-II
K

97. SWOT Analysis on IT Cosmetics
★ Strengths
○ Owned by a large worldwide parent company, L’Oreal.
○ Vast product range with large emphasis on ingredient quality and functionality of product.
○ Appealing image to the Japanese consumer; clean, clinical, fresh, fun, sleek.
★ Weaknesses
○ Hands-on selling approach, which is not as common/welcomed in Japanese market.
○ Color cosmetics line borders on skincare, making import process more difficult.
★ Opportunities
○ Japan has the 4th biggest beauty and personal care market in the world.

98. Opportunity in Japanese Market
Foreign Native
High Price
Low Price
K

99. Pricing
★ Prestige Pricing
○ High price=High Quality
○ The price of products somewhat higher than similar products
★ Competitor Prices
IT Cosmetics Shiseido YSL Jill Stuart DHC Clinique
Je Ne Sais Quoi™ Lip
Treatment
2841.05 ¥
BENEFIANCE Full
Correction Lip
Treatment
4261.57 ¥
VOLUPTÉ SHEER
CANDY
4379.95 ¥
Fruit Lip Balm N
1500 ¥
DHC Lip Cream
947.02 ¥
Repairwear™ Intensive
Lip Treatment
3314.56 ¥
K

100. Legal and Regulatory Issues
★ Cosmetics are regulated by the Ministry of Health,
Labour and Welfare (MHLW) under the
Pharmaceutical Affairs Law (PAL).
★ For legal purposes, beauty products are divided into
quasi-drugs (products that have minimal to moderate
pharmacologic activity but are restricted in use to
specific indications) and cosmetics.
★ Advertising and labeling for cosmetics are regulated
by law, which details labeling guidelines for
containers or packaging, and certain items that may
not appear in the labeling.
K

101. Our Entry Strategy for Japan
★ Pricing will remain similar to U.S. pricing; affordable luxury and
technology.
★ While many Japanese consumers are turning to more affordable
goods, there is still an emphasis on spending on cosmetics.
★ The distribution strategy will be changed to conform to Japanese
buying habits.
★ A less hands-on approach to selling IT Cosmetics will be needed in
Japan.
★ We will focus on creating and constantly improving our Japanese
version of our online site, as well has having standalone “pop-up”
type shops for the consumer to browse at their leisure.

102. Necessary Adjustments
★ Upon entering the Japanese market we will expand our skincare line first and foremost, which will
include popular Japanese products such as sheet masks and essences.
★ We will adjust the focus of our advertising, packaging, website copy, etc., to reflect an emphasis on
ingredients.
★ We will also adjust our packaging for the Japanese market. A cleaner, less-wordy, and sleeker
packaging will do better with the Japanese consumer.

103. Comparing Current & New Market Communication
Home Shopping &
Broadcast Television
e-Commerce
In Person
Retail
Experience
Increased Digital
Communication
Specialty Store
Distribution
US Market Japan Market
Social Media
Pop-up Shop
Vending Kiosks
Exclusive Products
Magazine Ads
Mobile App Ads
Easier Shoppablity
through mobile
apps
More Japanese
Centered Products
S

104. Product Portfolio for Japan
★ New, innovative products geared towards the Japanese
consumer
○ Anti-aging benefits to target older consumers
○ Face Masks (ex. sheet masks and packs)
■ Masks products are experiencing the largest amount of growth
currently
○ Cleansing products
■ Cleansing is an essential and important step in the Japanese skincare
routine which is being influenced by the Korean 10 step skincare
regimen.
S

105. Advertising/Marketing Strategy
★ Tone: Feminine. Pink. Clinical
★ Message: “Your skin, but better! Skin-loving ingredients
provide you with serious beauty solutions that help you look
and feel your most beautiful!”
★ Unique selling proposition:
○ Skincare infused color cosmetics that offer multiple benefits
○ Formulated with plastic surgeons
★ Have a spokesperson that is more relatable for the
Japanese consumer.
★ Focus more on aspirational appealS

106. Magazine/Digital Ad
★ Partner with Japanese model Tao Okamoto to relate to
Japanese consumer
★ Can be digital or print and also adapted to a banner ad

107. Digital Campaign Strategy
Online
★ Paid & organic social media
○ Line
○ Youtube
○ Facebook
○ Twitter
★ Retargeting
★ Keyword search
Mobile
★ Mobile app ads
★ Itcosmetics mobile app
○ Shopping card
○ Product detail & review
○ Payment
○ Membership reward
○ Tarot reading
Email
★ Birthday card,
★ E-giftcard,
★ Newsletter
C

108. Pop-up shops & Vending machines
★ Seasonal pop-up shops in
Tokyo
○ Ginza shopping district
★ Several vending machines at
important commute stations
○ Haneda and Narita Airport
○ Ginza, Shibuya, Omotesando
Shopping Districts
○ Vending machines in Japan are
a very popular way to sell
product and have been utilizedC

109. Other Channel: Seven Eleven
★ Limited edition items in iBon pre-
order catalog
○ Brush set
○ Holiday gift
★ Selected items in Seven Eleven
○ Lip balm. Travel size makeup
remover
Why 7-11
★ Leading convenience store in Japan
★ Everywhere in Japan
★ Cosmetics sales is increased in convenience stores
★ Open 24-7-365
★ Easily accessible for working women
★ Women purchase the products of a trustful
manufacturer Other brands in convenience stores:
★ Kose
★ Fancl
★ Muji
★ Kanebo cosmetics-MFC
7-11 global stores
C

110. How to Achieve a Successful Launch in
Japan★ Focus on digital and mobile marketing
channels
○ Thoughtful IT Cosmetics app for female
customers
★ New products that are more relatable for
the Japanese consumer
★ Selected items in the leading convenient
stores to offer wider distribution
★ Adjust positioning to be more relatable to
the Japanese market
S

111. Thank
You!