Business Concept & Project
❖ 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/
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.
Business Concept & Project
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/
Business Concept & Project
❖ My choice of artist related products and the
appropriateness of the perfume to Beyonce
and the assignment
❖ The perfume business is an excellent resource repository/2007/05/medium/
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)
Size & Nature of the Market (http://www.doctorhit.ro/wp-
Target Market beyonceonline.com/content/
Primary: Ages 16 to 3Beyonce800x600.jpg)
28, are our main
target market, they
Beyonce’s ,main fan
base and will be the
first to buy our
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
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
that will ﬁt the brand which it belongs to. everywhere
We do plan to go international with this thursdaystyles/30PERFUME.html?
product especially if Beyonce goes on to the
tour and it is international. International packaging of
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
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)
❖ Rihanna (http://
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://
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-
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/
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/
pitched the song “Time of Your life” during her mariah_carey242_471f270442aca.
“Adventures of Mimi” tour.(http://www.musicsnews.com/ jpg)
✦ Some huge associated risk with celebrities
are their celebrity status.
If you get into an endorsement deal with a
celebrity, the biggest thing is making sure that capt.f285c8a87c64471c93fc600104509d1b.
they keep up the image that represents the x=213&y=309&xc=1&yc=1&wc=282&hc=40
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/
A major risk is alway
going to be that the celebrity can tarnish their
status, thus tarnishing the reputation of your
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
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://
Sales & Marketing Strategy
❖ Marketing Plan
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.
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
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)
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.
❖ 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
//graphics8.nytimes.com/images/blogs/themoment/posts/ ❖ For the ﬁrst 3 years we intend to
make over 54 million dollars. We
want to make 18 million the ﬁrst
year and 36 million the second
year to keep everything steady.
We will be asking for
10 million dollars
Graph which is 4 million for
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
other 4 million for the
pay back 10000000
point production of the
product as well as
Investor return distributing it. The
other 2 million is for a
pad incase we go over
shooting the promos
5000000 We will give back the
10 million at the end
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
Product & Prototype
❖ 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
potion like tint, with sand at the bottom, which the spray thumb_4/1097610739S0
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.
To the female youth
“B.K.” is the fragrance
that will keep anyone
smelling beautiful and
sexy because of its
sweet honey scent and
✦ Pricing strategy
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.
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
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.
✦ Promotion strategy beyonce_wma_performance6.jpg)
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.
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.
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.
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.
❖ 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.
❖ Ponder that thought as you make your discussion
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