Rose prospective company report


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This is a prospective report of a company invented in class. You will find marketing strategy, advertising campaign and a study of the Chinese market.

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Rose prospective company report

  1. 1. Master 1 LEA 2011/2012
  2. 2. 2011/2012 Summary 1 - Presentation 1-6 2 - Main products 7-12 3 - Advertising campaign 13-23 4 - New export market 24-30 5 - Appendices 31-40Master 1 LEA
  3. 3. Master 1 LEA 2011/2012 Presentation
  4. 4. 2011/2012 Presentation Name of the company: Rose Date of creation: 31/10/2008 Headquarter: 43 rue de Ponthieu 75008 Paris Localisation: headquarters in Paris, production place : Grasse Subsidiaries: New York, San Francisco, London, Amsterdam, Barcelona, Rome Size: 120 employees Philosophy: Beauty by Nature Paris Rome New YorkMaster 1 LEA 1
  5. 5. 2011/2012 Presentation Anais Loos Clergeau A native from Grasse, Mrs Loos Clergeau founded Rose officially in 2008, but the idea was in her mind for many years. She decided to develop her idea in 2007. She started by launching a business plan and a communication plan in order to raise funds. Her idea was to create a company devoted to natural cosmetics, with products made in France by small local producers. Due to her motivation and perspicacity she won the titles «Prix de l’entreprenariat 2008» and «Créatrice d’avenir» titles that reward brilliance and initiative.Master 1 LEA 2
  6. 6. 2011/2012 Presentation Grasse - France Thanks to this award she won 50 000€ which allow her to develop partnership with local producers such as EARL LA VIOLETTE located in Grasse, well known for its production of high-quality flowers. Then Anais Loos Clergeau decided to pay a tribute to her city by giving the name Rose to her company. As we know, Grasse is well known for its flowers and in particularly because of its roses production. In September 2008 she was able to show samples to cosmetic shops, in order to develop partnerships with distributors. One month later she had already created a partnership with SephoraMaster 1 LEA 3
  7. 7. 2011/2012 Presentation Timeline 2008 2009 2010 2012 At the beginning in 2008, the In 2009, the company continued In 2010, a report showed an In 2012 Rose plan to conduct products were only sold in to develop its influence and important number of orders via a study on the Asian market, France, but as the sales made partnership with Spain, rose website from the United because the luxury goods were increasing every month, Italy, Netherlands. States, so Rose choose to open demand was increasing faster Rose decided to implement subsidiaries there. than expected. For example, subsidiaries in the natural This fast development allow the according to some experts market. Firstly, the company company to be very quickly well China will soon be the first choose to established an known and recognized in the country in luxury goods office in London, capital of world as a quality company consumption. fashion and luxury goods. which sales a large range of The company employed 4 cosmetic products. executives to study and understand the English market. Rose made a first partnership with a famous luxury retailer. As it was a success the board-directorsMaster 1 LEA took the decision to stay permanently. 4
  8. 8. 2011/2012 Presentation 20 The Company 15 Rose is currently a medium size company, which has only 120 10 5 employees but with an important growth: between 2009 and 2011 the 0 2009 2010 2011 2012 turnover has more than doubled. In 2011 the turnover reached 15 million. Location Firstly, the headquarter was located in Grasse, but it was not very convenient to develop partnership with international distributors, so the company decided to relocate to Paris in 2010.Master 1 LEA 5
  9. 9. 2011/2012 Presentation Organization Chart Anais Loos Clergeau Chief Executive Officer (CEO)Master 1 LEA Elaine Guillon Luocong Sun Yaxin Zhou Chief Marketing Officer (CMO) Chief Financial Officer (CFO) Product Manager (PM) 6
  10. 10. Master 1 LEA 2011/2012 Main Products
  11. 11. 2011/2012 Main Products French nature We have decided to offer to customers a small range of products to customers, but only to offer the best. All our products are made in factory in the south of France and only use all natural and organic products, in order to manufacture high quality products. The fact that Rose is the leading brand of natural cosmetic products in French pharmacies is very demonstrative of the French cosmetic market as a whole. Women look for products that are both beautiful and good for their health. Using our products is an enjoyable experience beyond their efficacy because everything we create is attractive and elegant, from the textures of our cream formulas to their fragrances.Master 1 LEA 7
  12. 12. 2011/2012 Main Products Moisturizing cream Crème de Rose, is a special product for the brand, it was the first one to be launch. Four years after its creation, it’s still our number one product. This multi-purpose cream nourishes, repairs, and protects skin thanks to its unique concentration of precious plant extract a silicon-free formula. This is why we decided to start exporting the cream the Rose abroad, as it is really representative of the quality of our products. What is a moisturizing cream? Creams are generally consisting of two basic components, an oil phase and an aqueous phase. A cream is formed when the oil phase is successfully emulsified into the water, producing an emulsion of stable and solid consistency. As Rose is only using good quality products, the result is that we are producing an excellent quality cream, we only use distilled mineral water, and premium oils, from rare and organic herbs, to make sure we only give the best to ourMaster 1 LEA clients. The factory is located in the South of France, a place famous for its knowledge of perfume, and its ability to extract essential oil from herbs and flowers. 8
  13. 13. 2011/2012 Main Products Functions of the “Crème de Rose” cream A cream is used to deliver and hold nutrients and medications on the skins surface. Both the oil and aqueous components can be used as a carrier. The skin has a limited capacity to absorb many oils and is responsive to surface medications such as herbal extracts, and to vibrational energies such as Flower essences. This is why our creams are not saturated with products, Rose knows that it is not by adding considerable amount of active elements that our cream will be efficient, but by the right dose of every elements. This led to the efficacy of Crème de Rose, directly related to the quality of the added ingredients, their concentration and how well either the oil or the water deliver ingredients on theMaster 1 LEA skins surface and facilitate its absorption into the skin. 9
  14. 14. 2011/2012 Main Products Functions of the “Crème de Rose” cream (next) How the herbal and flowers extracts are prepared is crucial in determining their efficacy in our cream. Our factory receive fresh delivery of plants and flower from the region every morning, because for a top quality finished product the raw materials also have to be good quality. We have decided that we will start by launching two different version of crème de jour on the Chinese market.Master 1 LEA 10
  15. 15. 2011/2012 Main Products Crème de Rose (pot) A 24HR Moisture Cream for dry and very dry skin. Re-hydrates, de-thirsts, energizes. This “lact-aroma” emulsion, a combination of 8 plant Oils (Lupin, Peas, Green Tea, Acacia, Almond, Coconut, Oat, non-GMO Soy) with moisturizing and fatigue-fighting benefits and Essentials Oils with relaxing properties, offers a long lasting hydration by helping recreate a moisture reserve. It draws up and diffuses water continuously throughout all epidermal layers (Pomegranate, 5 Plant Saps). Enriched with Plant Oils, it nourishes the driest skin types. Hydrated for 24 hours and re- energized, skin feels supple and comfortable. For morning and night. Apply morning and evening to face and neck previouslyMaster 1 LEA cleansed with a cleansing lotion. Avoid contact with eyes. 11
  16. 16. 2011/2012 Main Products Crème de Rose (bottle) A 24HR Moisture Cream for sensitive skin. Re-hydrates and calm sensitive and dry skin. This lotion is a combination of 2 extracts of plant Oils (Lavender and Almond) with moisturizing benefits and calming properties, offer a long lasting hydration and calm the skin by offering a free paraben solution. It draws up and diffuses the calming lotion continuously throughout the epidermal layers. Hydrated for 24 hours. For morning and night. Apply morning and evening to face and neck previously cleansed with a cleansing lotion. Avoid contact with eyes.Master 1 LEA 12
  17. 17. Master 1 LEA 2011/2012 Advertising Campaign
  18. 18. 2011/2012 Advertising Campaign New Ad Campaign A new ad campaign will show our potential customers how we position Rose, and the “Crème de Rose” that we plan to sell on the Chinese market. Those advertisements will be the most important aspect of our marketing plan. Brand positioning, as well as product or service positioning, can be expressed in many ways, from a simple slogan to an entire campaign. We have decided to collaborate with a really famous actress, Zhang Ziyi, to reflect the prestigious side of our brand. The colors uses in our brand are also very light, to give an impression of light and elegance.Master 1 LEA 13
  19. 19. 2011/2012 Advertising Campaign Planning an advertising campaign or Structuring the communication mix. First we identify the target audience, we decide whom the message is for, in the case of Rose the main targets are the middle and the upper class, the new generation, who now have access to western products, and are attracted by consumption. Though the current target who is interesting for Rose is the upper class. They are educated, married, and live in cities, which already represent a large number of women. And also the hundreds of millions of women who today are not middle class but who will soon be joining the existing consumers After we assessed the competition, and we discovered that if there is no Chinese equivalent brands to Rose, there is also a lot other brand. Those brands are Korean, American, French … butMaster 1 LEA the common factor is that luxury beauty products in China are often sold by foreign brands. 14
  20. 20. 2011/2012 Advertising Campaign Legal regulations Regarding the legal and regulatory environment, the rules are less restrictive in China, and if a product meets the French legal requirements it can be sold on the Chinese market without any problem. There is no need to adapt or to change the product by itself. We changed the name of the products, so Chinese customers can memorize it easily, but it was not a legal obligation.Master 1 LEA 15
  21. 21. 2011/2012 Advertising Campaign The response sought What would the marketer like the audience to do after they get the message? For us it is simple, we want to aware customers that our Crème de Rose will be soon available in the Sephora shops. Make a big event of that, so people get exited about this event too. Our marketing objectives are of course to increase the sales of Rose, and succeed to position our products. And at the same time build a strong network with our distributor Sephora. The first action that we will take to increasing brand awareness will be to conduct an advertisement campaign in magazines.Master 1 LEA 16
  22. 22. 2011/2012 Advertising Campaign The Target After, we choose the message. Concerning the source’s attributes, what about the product or company rose want to communicated. We want to show an appropriate image of the brand, all the ideas of the culture, what the brand Rose represent have to be presented. And what is the most appropriate medium, which one is the most appealing to the audience. In our case we thought women’s magazines, and in particular Vogue, and Bazaar. They both are read by the upper class, our main target. We know that women who read those magazines have money and are attracted by fashion and brand. First those magazines are expensive for the Chinese population, and then they only present brands and expensive clothes and cosmetics, so women reading Vogue and Bazaar are our exact targets. We know that having anMaster 1 LEA advertisement in this magazine is a good investment. 17
  23. 23. 2011/2012 Advertising Campaign Advertising budget Our financial department calculated the price for printing our commercials on Vogue and Bazaar and regarding the fact that the target is perfectly defined, it appears to be the best investment. (€30,000 per page) The cost per thousand readers is really reasonable. Our budget is determined by a fixed percentage of sales. We hope to cover 15% of the market of luxury moistening creams during the first quarter of 2012. And as in France and all the other European countries we achieved this objective, we think it can be possible in China too. And thanks to the European sales we can afford to pay for an quite expensive campaign in China. About the time for our advertisement, we have decided to start the promotion one week before the Chinese New Year, as during this period fortunate people can offer Crème de Rose as an expensive an valuableMaster 1 LEA gift, because during this period a lot of gifts will be exchanged. 18
  24. 24. 2011/2012 Advertising Campaign Feedback After the launch of the campaign we will have to collect We know that eight out of ten China based marketers the feedback. We will probably carry out a market said the biggest opportunity to grow in China is to go research to monitor how effective the promotion was. beyond saturated cities like Beijing and Shanghai. But Does the people know what is Rose? Do they know the we still think it is important to start by those big cities. name of our products? “A report called "Marketing to Like all foreign brands will start by implementing their the New Chinese Consumer”, presented at Global brand in Paris. In fact in China there is more than a Advertiser Week in Beijing by the World Federation of hundred cities with a population exceeding 1 million of Advertisers in association with Forbes Insights inhabitants, so it let plenty of other cities, not only explores how major brands are approaching Chinas Beijing and Shanghai. Which make more emerging consumer, based on a survey of 310 China- opportunities for us, and less chance to face a based marketing executives and follow-up interviews. “ saturated market in the next few years.Master 1 LEA 19
  25. 25. 2011/2012 Advertising Campaign Feedback (end) The Chinese Government is also very committed to developing the western part of the country in order to minimizing the gap between the urban rich east cost and the remaining hundreds of millions living in poverty in the countryside. “According to McKinsey, half of Chinas 100 largest cities will experience at least 50% growth in consumption between 2008 and 2015, and 25 will double their consumption.” This is why it the perfect moment for our brand to settle in China, in a moment where all western brands are new.Master 1 LEA 20
  26. 26. 2011/2012 Advertising Campaign Chinese advertisingMaster 1 LEA 21
  27. 27. 2011/2012 Advertising CampaignMaster 1 LEA “ Rose Products soon to be available in your Sephora shops ” Rose advertising campaign 22
  28. 28. 2011/2012 Advertising CampaignMaster 1 LEA “ Rose Products soon to be available in your Sephora shops ” Rose advertising campaign 23
  29. 29. Master 1 LEA 2011/2012 New Export Market
  30. 30. 2011/2012 New Export Market Why does Rose want to explore an other foreign market ? Rose is already successful in France and in the European markets, sales margin have doubled in only four years. Moreover the new settlement in the United States enables the company to increase more the turnover. Since its establishment Rose received good feedback from the United- States. Rose has only been introduced to the American market in September 2011 but is already well implemented on this market, it reaches the same level of its competitor established there for many years such as Chanel. Due to these advantages and increasing turnover rates, Rose has the financial capacity to settle on a new market. After having made studies and a business plan the company decided toMaster 1 LEA explore the Asian market. 24
  31. 31. 2011/2012 New Export Market Production and Income China GDP growth: 10,3% GDP: $6 273.49 billions GDP per inhabitants: $4 677 GDP by sector: industry 46.8%, services 43.6%, agriculture 9.6% GNP: $10.09 billions Average gross salary: $4,260 yearly Trade Imports of goods and services: 22,3% Exports of goods and services: 26,7% Goods trade balance: $181,8B Imports of goods: $1,396B Exports of goods: $1,577.8B Exchange rates (CNY per usd): 6.77 Population Total population: 1,338,299,500Master 1 LEA Population growth rates: 0.5% 25
  32. 32. 2011/2012 New Export Market Chinese market China is known for its large population, vast territory, and rich natural resources. China has a population of more than 1.1 billion, an area of 9.6 million square kilometers, and identified reserves of 150 different minerals. The Chinese economy has been growing fast since 1949, and especially in recent decades, the implementation of economic reform and the adoption of an "open door" policy have exercised a great influence on Chinese economic development. Chinas GNP has grown from about RBM 360 billion in 1978 to nearly RBM 1,800 billion in 1990. The growth rate of real GNP in each of these years exceeded about 9%, and so as the growth in foreign exchanges.Master 1 LEA 26
  33. 33. 2011/2012 New Export Market Strong foreign goods demand This economic development has resulted in a significant increase in the living standards of the Chinese people and have generated a growing demand for imported goods. In response to this huge and rapidly increasing market potential, overseas companies have been fervently pursuing opportunities in the consumer goods and service markets. Louis Vuitton, Chanel and many other household names established subsidiaries in important cities such as Beijing, Shanghai and Guangzhou. The influence of western habits has been key in this development, as have rising average incomes in China. Today, with fast increasing income and consumer purchasing power, China presents unprecedented opportunities for small andMaster 1 LEA medium sized foreign consumer goods. 27
  34. 34. 2011/2012 New Export Market The opportunities of this market The Chinese market has a fast growing purchasing power. And an increasing demand for quality western products. Chinas increasing economic strength and living standards have created a market with huge purchasing potential. China will soon be the largest consumer of luxury goods. China has now realized that importing is the way to develop the economy and raise consumption. The rapid and continuing increase in imports shows clearly that China is not only a big market for exporters now, but also is potentially a huge market with many business opportunities. And French luxury products benefit from a good image.Master 1 LEA 28
  35. 35. 2011/2012 New Export Market The threats of this market High competition from cosmetic brands such as Chanel, Lancôme... Important Counterfeit products market Important duty rates on luxury foreign goods. Complicated administrative process. The strengths for Rose in the Chinese market Rose already has a significant experience in several countries, such as in Europe, but also in the United states. The company which already has an established reputation offers a range of high quality products. Moreover there are few Chinese cosmetic brands to compete with.Master 1 LEA 29
  36. 36. 2011/2012 New Export Market The strategic plan In order to succeed Rose has planned to recruit Chinese employees and to develop an Asian department, because it is very important to understand the special needs of Chinese people, and to be aware of cultural differences. Products will also be adapted to the Chinese market, the name of the company will be translated into an easily pronounceable word for Chinese people : Bai Hua. The company has already created new packaging especially for the Chinese market. It is also important to select an adapted distribution channel, because in China the relationship between a brand and its distributor does not work in the same way as in Europe. That is why it is essential to build a strong network with local retailers. Rose also planned to launch a massive advertising campaignMaster 1 LEA after the Chinese new year, which starts the 23 of January. 30
  37. 37. Master 1 LEA 2011/2012 Appendices
  38. 38. 2011/2012 Bibliography 1 LEA 31
  39. 39. Master 1 LEA 2011/2012