Beyonce project

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Beyonce project

  1. 1. Shana Williams Final Project Steve Norman & Ann O’Nale Product and Artist Management Due August 30th, 2009
  2. 2. “B.K. Perfume” By Beyonce Knowles
  3. 3. Business Concept & Project Definition ❖ Appropriateness of Beyonce and why Beyonce and her product is the best choice ❖ Beyonce Knowles reigns over the entertainment industry in many forms. She is a Singer, Actress, Model, and an Entrepreneur. Also one of her greatest qualities is being a Spokes Person for many different products. Beyonce Knowles started off as lead singer of the R&B girl group Destiny’s Child and than broke away from that to peruse a successful solo career upon which she has received 3 number one albums and (http://images.eonline.com/ eol_images/Profiles/ 5 grammy awards for her efforts. (http://www.answers.com/topic/beyonc-knowles) With all of this 20060912/244.knowles.beyonce. success under her belt, along with movie roles in films like “Dream Girls” and 091906.jpg) “Cadillac Records”, one can clearly see why she is a house hold name. (http:// www.answers.com/topic/beyonc-knowles) Beyonce is admired by the generation of today, inspired to look like, sound like, and act like everything that embodies her. When you have a star like that pushing your product you cannot fail.
  4. 4. Business Concept & Project ❖ Definition Beyonce has represented a wide range of products from, “L ’oreal” products, “Pepsi”, “Tommy Hilfiger”, “Verizon”, “Armani”, and her own “House of Deron” line. (http:// www.answers.com/topic/beyonc-knowles) Mostly any product that can help a fan look like or live the stylish lifestyle of Beyonce is being endorsed by Beyonce. For example, lets say you want beautiful blonde hair and make up just like Beyonce, than of course you would use the products created by “L ’oreal”,which she says she uses. Or lets say you want a fragrance or something to drink but there’s too many competitors to chose from, of course the product that Beyonce sells will help you make the choice. (http://www.answers.com/ topic/beyonc-knowles) ( http://www.youtube.com/ watch? v=LRf9Spt5toI)
  5. 5. Business Concept & Project Definition ❖ My choice of artist related products and the appropriateness of the perfume to Beyonce and the assignment (http://www.fashion.hr/img/ ❖ The perfume business is an excellent resource repository/2007/05/medium/ beyonce.jpg) to invest in. Since last year alone the business has gone up 2 percent in the United States. (Horyn,2005) Choosing a celebrity to represent your product is also a good idea because celebrity perfumes represent more than a quarter of the money made from perfume sales today.(Horyn,2005)
  6. 6. Size & Nature of the Market (http://www.doctorhit.ro/wp- content/uploads/ Target Market beyonceonline.com/content/ wallpaper/ Primary: Ages 16 to 3Beyonce800x600.jpg) 28, are our main demographic and target market, they are also Beyonce’s ,main fan base and will be the first to buy our product. (http:// www.answers.com/topic/beyonc- knowles) Secondary: Ages 29 to 45, probably the generation which can afford the product the most, and while not their favorite artist, they are still Beyonce’s fans. and are the generation to buy perfume, more likely. (Horyn,2005)
  7. 7. Size & Nature ❖ Product Versioning of the Market The world of Perfumes and Colognes is big and has a design specifically tailored to fit the style of each type of customer. Most perfumes for women ❖ We are Global Markets come in the scents of flowers, fruits, and sweets, with unique packaging from the bottle to the box hoping to market that will fit the brand which it belongs to. everywhere (www.nytimes.com/2005/06/30/fashion/ from We do plan to go international with this thursdaystyles/30PERFUME.html? commercial product especially if Beyonce goes on to the pagewanted=2&ei=5090&en=dd6d1b6d6cc0df7 tour and it is international. International packaging of b&ex=1277784000&partner=rssuserland&emc=r Beyonce’s sales are very big for the perfume ss) albums and industry which is a good thing. Sales tour. from Eastern Europe and Latin America account for most of the revenue generated for companies like Chanel, Estee Lauder, and Dior. Marketing (www.thenational.ae/article/20080708/ program BUSINESS/ 301852227/1055&Profile=1055) This is Positioning because perfumes originate from The Positioning is counties like these not only being a part going to be High of their culture but their background. end, not just (www.thenational.ae/article/20080708/ because of the BUSINESS price but because Beyonce is a brand 301852227/1055&Profile=1055) This is that can sell at any also a good idea to go international dollar amount because Beyonce’s fan base is big outside the United States. Beyonce has had number one hits in Norway, (http://www.rap-wallpapers.com/data/media/2/ Sweden, South Africa, Korea, Brazil, beyonce_wallpapers_23.jpg) and Denmark.(www.eurweb.com/story/ eur49317.cfm)
  8. 8. Competition ❖ Rihanna (http:// www.morgenutgaven.co m/innhold/ A popular Artist who has always been as a rihanna_umbrella_tega threat to Beyonce’s career has been Rihanna. nsara_lat.jpg) Growing up in the R&B and Pop industry, just as Beyonce did, lead the way for numerous deals with companies such as J.C. Penny’s, Cover Girl, the fragrance Clinque Happy with Clinque, and a deal with Gucci as well(http:// www.answers.com/topicrihanna) Ciara Probably the most similar artist to Beyonce, (http:// stylistically out there today, anything Beyonce images.starpulse.com/ can endorse, Ciara can to. It does not help Photos/Previews/Ciara- lf03.jpg) Beyonce that Ciara has just signed a contract with Wilemmena Modeling agency, the same agency which got the L’Oreal and Armani deals for Beyonce.(http://music.lovetoknow.com/ Ciara_Biography) Mariah Carey Mariah Carey is a still a bigger name than Beyonce, but just not a bigger brand. She just released her own perfume entitled “M” by Mariah Carey by Elizabeth Arden and also has (http:// a deal with Pepsi as well as motorola. Pepsi www.superphotospace.com/ images/ pitched the song “Time of Your life” during her mariah_carey242_471f270442aca. “Adventures of Mimi” tour.(http://www.musicsnews.com/ jpg) articles/677/1/Mariah-Carey-to-develop-fragrance-line)
  9. 9. ✦ Some huge associated risk with celebrities are their celebrity status. If you get into an endorsement deal with a Risk (http://d.yimg.com/a/p/ap/20090825/ celebrity, the biggest thing is making sure that capt.f285c8a87c64471c93fc600104509d1b. people_chris_brown_cacp125.jpg? they keep up the image that represents the x=213&y=309&xc=1&yc=1&wc=282&hc=40 9&q=85&sig=6VX_ofQfurokSVMH0bu5 brand. Look at how bad “Curious” by Britney 8A--) Spears did during her break down period or how quick “Doublement Gum” was to drop (http://fashaddix.com/wp- Chris Brown after his spat with Rihanna. (http:// content/uploads/2008/07/ www.mtv.com/news/articles/1604613/20090209/ chris-brown-doubles-his- pleasure.jpg) A major risk is alway brown__chris__18_.jhtml) going to be that the celebrity can tarnish their status, thus tarnishing the reputation of your product. Another risk which keeps occurring is the target audiences of celebrities today do not match the target audience of those buying perfumes. These perfumes are marketed to the demographic of the artist’s fans which in this (http://www.digimetroonline.com/ case could be any where from age 8 to 38 but blog/wp-content/uploads/2007/02/ there’s a huge focus on ages 16 to 28, which is britney-shaved-head-1.jpg) not the perfume generation. Are biggest task may being getting a generation stuck on electronics like Ipods, to buy fragrances. (http:// (http:// www.justimported. com/shop/images/ britneycara.jpg)
  10. 10. Sales & Marketing Strategy ❖ Marketing Plan Long-term objectives To use product which is the new fragrance called "B.K. Perfume By Beyonce". This will be the first in a series of fragrances to be released by the singer in the near future. Problems/opportunities Potential Problems could include anything from a problem with the pricing of the perfume coordinating with the celebrity and their demographic age group’s standard income to celebrity actions in the media ruining the reputation of the product. Opportunities can include the chance to build the brand of Beyonce or the opportunity to capitalize off of her tour in order to spread the product throughout her fan base and the entire United States as well as other counties in the event of an international tour. Sales forecasts/goals We plan to sell the product at 75’$ per bottle, though the average fragrance endorsed by a celebrity is always from 40 to 55 dollars. (Horyn,2005) But we are the brand of Beyonce so we want to be at the higher end, so we had to pull up the price to match the name. We are expecting to sell 240,000 bottles at the end of the year, which will amount to 18 million in-terms of sales, which seems reachable when you look at how “Curious” by Britney Spears Sold 36 million in its first 4 months. (Horyn,2005) ❖ (http://www.funonit.com/foto/ gnocche/beyonce_knowles/ beyonce_knowles_219.jpg)
  11. 11. Artist & Sales Management Team ❖ Key Team Members ✦ President- Shana Williams Senior VP- job is to make certain that “B.K. by Beyonce” not only constantly represents the brand name Beyonce but is consistent and trying to let young women everywhere know that this fragrance fits them. Business Unit Manager- To make sure that we a provided with a proper budget to launch the new products which will be our start in the U.S. as well as goals and plans which will help us stay in trend. Product Development- Taking feedback from surveys and target audiences and changing the product to better fit our main customer. Market Research- Comparing and Contrasting how our product did compared to other similar products, what were perfume sales like in total over the past year, Who improved, and what are they doing that we are not? Marketing and communications- Coming up with new marketing strategies or more effective ways to launch the product, making sure that those plans get carried out. Making sure concert and tour events which are for our perfume promotion run smoothly. Sales- Driving toward sales, showing the customer that your perfume is the one for them. Not giving up at letting them know that the price is totally worth it. Finding new ways and opportunities to sell to the customer. Operations- Operating customer support and getting feedback, taking complaints or suggestions. Corporate Relations- Coming up with new business strategies on how to better promote the product, as well as the artist. Always finding new ways to develop the product along with the artist music. Personnel- The product manger themselves, who knows everything about the product and the artist as well. Quality Assurance- testing the perfume quality and the safety of it, everything from the shape of the bottle to the formula of the perfume used.
  12. 12. ❖ The way that we ensure that the Growth & Milestones project is in on time and on budget is by having the actual & Projections perfume ready within weeks of starting up and releasing the product and promotion according to tour date. What we have is a padded budget for the cost of goods, payroll, touring, promotion, advertising, and distribution in case we go over the plan. //graphics8.nytimes.com/images/blogs/themoment/posts/ ❖ For the first 3 years we intend to 0216moneyfan.jpg) make over 54 million dollars. We want to make 18 million the first year and 36 million the second year to keep everything steady.
  13. 13. We will be asking for 10 million dollars Graph which is 4 million for touring and January February March April May June July August Septemb October Novembe Decembe er r r promotions and the B.K. 500000 1000000 1250000 2500000 5000000 7500000 10000000 12500000 15000000 17500000 18000000 20000000 Perfume Net Sales other 4 million for the pay back 10000000 point production of the product as well as Investor return distributing it. The 20000000 other 2 million is for a pad incase we go over 15000000 budget with advertising and 10000000 shooting the promos and videos. 5000000 We will give back the 10 million at the end 0 January February March April May June July August of July of the first year. September October November December B.K. Perfume Net Sales pay back point
  14. 14. Product & Prototype (http://p.dada.net/ cspv/ 93-38-70-00-00- ImagePreview- JPEG200x200/ beyoncé/beyonce- bee-logo.jpg) ❖ The product is going to be in an hourglass shaped bottle (http:// with a gold tint and the fragrance is going to have a gold thumbs.dreamstime.co m/ potion like tint, with sand at the bottom, which the spray thumb_4/1097610739S0 F2zR.jpg) bottle will not pick up. ❖ the handle is going to have a plastic “Bee” on it and inside the bottle with the sand as that is one of Beyonce’s signature trademarks. As a result of the “Bee” the scent will smell like honey and be called B.K. ❖ There will also be little “B’s” as in the letter “B” floating around in the sand.
  15. 15. statement To the female youth market, Beyonce’s “B.K.” is the fragrance that will keep anyone smelling beautiful and sexy because of its sweet honey scent and curvaceous design. (http://www.actumix.com/wp-content/uploads/ 2008/04/2Beyonce1024x768.jpg)
  16. 16. ✦ Pricing strategy Description: We will be pricing the product at 75 dollars per bottle. If sales start of bad in the first quarter than we are prepared to go down to 65 dollars per bottle. Objective: We want to find out what does not work, the artist, the price or the perfume itself. We believe fans will by the product at any price but we are also thinking about the youth and the economy we live in and what is reasonable. Advertising strategy Message and Media strategy: A music video and Commercial rolled into one which will be the launch of our advertising, The fragrance should coincide with the launch of her new album which should also be called “B.K.” Everyone can relate thorough song, so her new single will remind people of the perfume as well as promote it at the same time. We also would like to tour in order to promote the project, selling the perfume will on tour recuperating as much as 3 million in sales as promoting the perfume as tour merchandise. Cost: 45 thousand, we shoot outside in Louisiana using the swamp as a setting and product placing the perfume in the grass, as she dances and sings around it. Rationale: People would enjoy a music video that has our product in it no matter what country they are in, music is universal. We will run the same advertisement everywhere but the voice over talking about the product will be in the language of the country the commercial is being shown in. (http://www.rap-wallpapers.com/data/media/2/beyonce_wallpapers_14.jpg)
  17. 17. Financial (http://www.beyoncenow.com/ picture/appearances/ ✦ Promotion strategy beyonce_wma_performance6.jpg) Description: Promotion along with the artist new album that is coming out. also a lot of big posters in shopping centers as well as commercials and of course the artist mentioning our product in movie or in songs. Contest for Beyonce tickets when a customer purchases the perfume, may work as a good strategy. Objective: to make the name Beyonce and “B.K.” go hand in hand so customers want the perfume as much as they want to be her. The eye catching promotion is something that they will not be able to escape. Field sales plan Description: Free samples and testing for all to try, maybe we send them out in the mail for free, maybe you get them in her album or if you go to a Beyonce event. Also we set up booths in certain malls or strips, just to get word out about the product. Distribution strategy Strategy: Start selling at department stores like Macy’s or J.C. Penny’s. Selling at a place like this is the best option for getting the product to to young women customers, we should also sell the product at music stores like “FYE” where it can be promoted with the album. Also a good idea may be to distribute samples in the packaging of Beyonce’s albums and to distribute them while she is on her U.S. tour. Product support Description: product cannot be returned because of disapproval of scent but we are open to customer suggestions as we are trying to figure out what are the pro’s and con’s of the product. We will however list ingredients inside the packaging incase of a customer allergy, for warning and safety purposes.
  18. 18. Closing Statement ❖ In the end I can say that this would be an incredibly smart investment to make. One last note to leave with is that Beyonce is the richest star under 30, how did she do it you may wonder? By making 20 million in deals such as these. ( http://www.aol.in/internationalmusic-story/How-Beyonce-Knowles-became-the-Richest-Star-under-30/441007) ❖ Ponder that thought as you make your discussion
  19. 19. Works Cited ✦ 1.) “Beyonce Unveils Overseas Tour Schedule: Month-long trek to begin April in Zagreb.” (December 12th, 2008) Retrieved on August 23rd 2009 from http:// www.eurweb.com/story/eur49317.cfm 2.) “Beyonce Biography” Retrieved on August 23rd 2009 from http://www.answers.com/topic/beyonc-knowles 3.)“Beyonce Pepsi” Retrieved on August 23rd 2009 from http://www.youtube.com/watch?v=R2gkATAq_us 4.)“Ciara Biogrpahy” Retrieved on August 23rd 2009 from http://music.lovetoknow.com/Ciara_Biography ✦ 5.) Grochels, Linda. The Project Managers HandBook third addition. 2006. McGraw-Hill. New York, New York. ✦ 6.) Horyn, Cathy. June 30th 2005.(The Sweet Smell of Celebrity) www.NewYorkTimes.com Retrieved on June 24th 2009 7.) Montgomery, James. Febuary 9th 2009. http://www.mtv.com/news/articles/1604613/20090209/brown__chris__18_.jhtml) Retrieved on June 24th 2009 8.)“NEW! 2008 Feria Hair Color Commercial by L'OREAL (Solange & Beyonce”) Retrieved on August 23rd 2009 from http://www.youtube.com/watch?v=LRf9Spt5toI 9.)Salama, Vivian “Scents and Sensibility” (July,8th 2008) Retrieved on August 23rd 2009 from http://www.thenational.ae/article/20080708/BUSINESS/ 301852227/1055&Profile=1055 10.)“Rihanna Biography” Retrieved on August 23rd 2009 from http://www.answers.com/topicrihanna 11.)“Tommy Hilfiger True Star - Beyoncé”August 23rd 2009 from http://www.youtube.com/watch? v=8xHtAUD027A&feature=PlayList&p=9BC002F2BB5D0D68&playnext=1&playnext_from=PL&index=28 12.) Tsaqarakis, Giannis “Mairah Carey to Develop Fragrance Line” (April 8th 2006) Retrieved on August 23rd 2009 from http://www.musicsnews.com/articles/677/1/Mariah-Carey- to-develop-fragrance-line
  20. 20. 13.) Retrieved on August 23rd 2009 from http://images.eonline.com/eol_images/Profiles/20060912/244.knowles.beyonce.091906.jpg 14.) Retrieved on August 23rd 2009 from http://www.fashion.hr/img/repository/2007/05/medium/beyonce.jpg 15.)Retrieved on August 23rd 2009 from http://www.doctorhit.ro/wp-content/uploads/beyonceonline.com/content/wallpaper/3Beyonce800x600.jpg 16.) Retrieved on August 23rd 2009 fromhttp://www.rap-wallpapers.com/data/media/2/beyonce_wallpapers_23.jpg 17.) Retrieved on August 23rd 2009 from http://www.morgenutgaven.com/innhold/rihanna_umbrella_tegansara_lat.jpg 18.) Retrieved on August 23rd 2009 from http://images.starpulse.com/Photos/Previews/Ciara-lf03.jpg 19.) Retrieved on August 23rd 2009 from http://www.superphotospace.com/images/mariah_carey242_471f270442aca.jpg 20.) Retrieved on August 23rd 2009 from http://d.yimg.com/a/p/ap/20090825/capt.f285c8a87c64471c93fc600104509d1b.people_chris_brown_cacp125.jpg? x=213&y=309&xc=1&yc=1&wc=282&hc=409&q=85&sig=6VX_ofQfurokSVMH0bu58A-- 21.) Retrieved on August 23rd 2009 from http://fashaddix.com/wp-content/uploads/2008/07/chris-brown-doubles-his-pleasure.jpg 22.) Retrieved on August 23rd 2009 from http://www.digimetroonline.com/blog/wp-content/uploads/2007/02/britney-shaved-head-1.jpg 23.) Retrieved on August 23rd 2009 from http://www.justimported.com/shop/images/britneycara.jpg 24.) Retrieved on August 23rd 2009 from http://www.funonit.com/foto/gnocche/beyonce_knowles/beyonce_knowles_219.jpg 25.) Retrieved on August 23rd 2009 from http://graphics8.nytimes.com/images/blogs/themoment/posts/0216moneyfan.jpg 26.) Retrieved on August 23rd 2009 from http://p.dada.net/cspv/93-38-70-00-00-ImagePreview-JPEG200x200/beyoncé/beyonce-bee-logo.jpg 27.) Retrieved on August 23rd 2009 from http://thumbs.dreamstime.com/thumb_4/1097610739S0F2zR.jpg 28.) Retrieved on August 23rd 2009 from http://www.actumix.com/wp-content/uploads/2008/04/2Beyonce1024x768.jpg 29.) Retrieved on August 23rd 2009 from http://www.rap-wallpapers.com/data/media/2/beyonce_wallpapers_14.jpg 30.) Retrieved on August 23rd 2009 from http://www.beyoncenow.com/picture/appearances/beyonce_wma_performance6.jpg 31.) “How Beyonce Became The richest star under 30” Retrieved on August 23rd from http://www.aol.in/internationalmusic-story/How-Beyonce-Knowles- became-the-Richest-Star-under-30/441007

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