School Assignment: Detailed proposal for a new cosmetic line to add to the GUESS? franchise. I was working there at the time and thought this would be a perfect addition to the brand, especially since they had covered mens/womens clothing, accessories, cologne, perfume, it felt only nature that cosmetics would be the next step.

1. Karyn Mariano
Due 4/6/09
GUESS Who’s Hot?
Cosmetics by GUESS, Inc.
1. Executive Summary-
a. Situation analysis summary- GUESS’s situation analysis was based on
several objectives: to inform, persuade and remind. Therefore in our
advertising campaign we plan to create awareness about our new
cosmetics line and by reinforcing brand identity. We will create
understanding by providing key information about our product line. A
major objective in our ad campaign is to create an attitude change,
which has always been an objective of GUESS, to create a self-
confident, sexy and glamorous woman, and our cosmetics pull the
whole package together. Create reinforcement of the need for our
cosmetic by emphasizing consumer demand for it. Finally we tend to
create changes in behavior by advertising our free testers at offering
stores of our cosmetics and encourage consumers to go online for free
trials through signing up for email to create brand loyalty as well.
b. Marketing objectives summary- The objectives of the advertising
campaign for the new cosmetics line, GUESS Who’s Hot? by GUESS,
Inc. are based on market research done in the markets, domestically
and internationally, of our best selling stores. For the beginning of the
campaign we will start by offering our cosmetics in select stores in the
U.S., Canada, and Asian markets that have done the best in recent
years.
c. Marketing strategies summary- GUESS strategies were based on the
trends in the cosmetics industry right now as well as the pricing by our
competitors. We want to showcase our affordability as well as
versatility in these hard economic times. Our main objective is to keep
with GUESS brand integrity and always provide the highest quality and
up to the minute fashions. GUESS has always been an innovator,
especially when it came to our ad campaigns, and we will continue to
be attention grabbing and create a sexy attitude.
2. Situation Analysis-

2. Karyn Mariano
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a. Definitions of industry and company business- Further, the mighty
threesome of denim of the last decade are clearly hurting. San
Francisco-based Levi Strauss, a division of Levi Strauss Associates,
recently announced that it would lay off about 1,000 people to save
$80 million, largely because sales are growing more slowly than costs.
VF, with headquarters in Wyomissing, Pa., maker of the Lee, Wrangler
and other brands and the nation's No. 1 jeans company by sales, is
consolidating its buying and decreasing the number of employees in
some divisions. And Guess, based in Los Angeles, has turned its focus
more to its other apparel and to its international business.
b. History of industry – trends- Potential strategies include highly
interactive shop-like websites, online only offers and attractively
presented beauty tips and information. L'Oreal, Estee Lauder and
Dermitage all followed this path in the run up to Christmas with
redesigned websites and online marketing campaigns. Consumers are
also turning towards blogs and consumer reviews in order to find out
more about the effectiveness of different cosmetic products. Providing
a forum for reviews and consumer feedback can help cosmetics
manufacturers and retailers boost website visits and therefore increase
sales. Well off professionals are becoming increasingly fussy about
what they consume and are investing time and money to find out more
about the food they eat and the make-up they wear. Not only can this
trend be seen in the rise of natural and organic cosmetics but also in
the popularity of products whose labels identify key ingredients and
their sources. Red roses from Turkey and grapes from the south of
France add value to a product in the eyes of the new puritan who is
also likely to demand greater transparency from the manufacturer
regarding the origins of the remaining ingredients.
c. Growth pattern within industry- It is a big pie: Sales of jeans in the
United States grew 8 percent last year to $10.6 billion, according to the
NPD Group, a market research firm in Port Washington, L.I. Yet, with
sales falling short of expectations, the big jeans companies ended up
with too much denim on their hands and cut back on orders to the mills
by as much as 20 percent.
3. Company:
a/b/c. GUESS, Inc. is the vision and creation of the four Marciano brothers,
Maurice, Paul, Georges, and Armand, who grew up in the south of France, combining a

3. Karyn Mariano
Due 4/6/09
love of the American West with European sensibility. It all started with silk ties that
Georges began designing while working as a hairdresser. Maurice helped to
manufacture them and Paul sold them in Paris out of the trunk of his car. They called
there small business MGA, which stood for Maurice, Georges and Armand. Soon they
were making a peasant blouse and one dress style offered in a multitude of prints. The
clothes were popular and sold quickly. In 1973 they took over an old fish store and used
the existing counters, displays and storage for their merchandise.
By 1976 they had 20 stores, and stone-washed jeans were the latest and
greatest product on their shelves. “Nobody who sold a lot of jeans had washed the
fabric from the beginning to get this stonewashed appearance; that was a revelation to
us. From the day we realized that, we knew we’d do a lot of stonewashed jeans.” (Paul
Marciano, “Interview magazine,” October ’97). These jeans--named GUESS, because it
was easy for the brothers to pronounce--were meant to fit tightly and featured zippers at
the ankles. They also featured what would soon become the distinctive GUESS triangle
on the back pocket. In 1977, the brothers came to L.A. and were so enchanted with the
California scene and lifestyle that they started several MGA stores in Southern
California.
Georges Marciano flew to New York in December 1981. Despite his limited
English, he convinced Bloomingdale's to display on consignment 30 pairs of his
European-style jeans in Bloomingdale's flagship New York store. Within three hours,
Bloomingdale's sold out of every pair, despite a $60 sales tag. GUESS jeans sales took
off spectacularly the following year when Paul Marciano arrived in California to direct
the company's advertising campaign. Although he had no previous advertising
experience, Paul Marciano devised a campaign that revolutionized the way jeans--and
clothing--were sold. Instead of adopting the typical studio design, Paul brought his
brother's jeans, and the models wearing them, outdoors, using grainy black-and-white
photography and provocative poses described by Forbes as "catering to teenage
cravings for sex, power, attention and self-love ... electric not only with sexuality but with
an implicit brutality and exhibitionism as well." The controversial ads and their sexy
Western look swiftly created household names not only of the GUESS brand, but also of
its models, in effect starting the supermodel trend that would make many of the "Guess
Girls"--including Carre Otis, Claudia Schiffer, Naomi Campbell, Eva Herzigova, and
Anna Nicole Smith--international stars.
By the end of 1982, the Marcianos had sold some $12 million dollars of their
jeans. Demand for their product soon overwhelmed the Marcianos. Searching for the
capital to expand and access to cheaper foreign labor, the Marcianos signed a deal in
July 1983 with the Nakash brothers of the company Jordache, giving Jordache 50
percent ownership of GUESS in exchange for $4.8 million and use of Jordache's Hong
Kong manufacturing plants. By the time of the Jordache deal, the Marcianos had
already begun to expand their line beyond jeans. In 1982 they entered the menswear
market through a licensing agreement with Jeff Hamilton, Inc., which marketed a line of
men's clothing under the GUESS name in exchange for a 7 percent royalty fee.
Between 1983 and 1984, sales of GUESS menswear rose from $2.5 million to $27

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million. GUESS soon sought to terminate license agreement with Hamilton due to their
“dumping” of GUESS merchandise into Kmart and other discount stores that was
hurting the brand’s high-end reputation and image. The menswear line was brought in
house in 1986.
The Marcianos sued the Nakash brothers and Jordache in 1984, charging that company
with unfair competition and claiming that the Nakash brothers were using their position
on the GUESS board of directors and their access to GUESS designs in the Hong Kong
plant to produce knockoffs of GUESS clothing in their Jordache line. The Marcianos' suit
asked the court to undo the 1983 agreement that had given the Nakashes control of half
of GUESS. The battle for control of GUESS continued for the next five years.
Despite GUESS' legal distractions, sales continued to grow, reaching $350 million in
1987, with profits of $100 million. While much of its sales continued to be in jeans,
GUESS had successfully entered the women's market, with its upscale Georges
Marciano label, as well as children's, leatherwear, and footwear. Re-launching its
menswear line in 1986, GUESS began to make inroads in that market as well, placing
its products in men's departments of most major department stores. Licensed products,
including GUESS watches, eyewear, and a GUESS women's fragrance line produced
by Revlon, also contributed to overall sales: in 1990, GUESS watches alone sold an
estimated $60 million. By 1990 sales reached an estimated $575 million.
The legal battle between the Marcianos and the Nakashes finally ended in early 1990,
when a jury agreed with the Marcianos and returned 100 percent control of GUESS to
them. A second trial was set for May 1990 to determine damages. However, as the jury
in that case was deliberating, the Marcianos announced that they had reached a
settlement with the Nakashes for an undisclosed amount. With their resources freed up,
the Marcianos increased their advertising budget to $22 million in 1991. The company
also expanded its retail chain, to 33 stores by the end of 1991, including its European
flagship store in Florence, Italy. While the recession of the early 1990s slowed growth
somewhat, to 7 percent in 1991 compared to double-digits throughout the 1980s,
GUESS menswear took off, with a 41 percent sales growth in 1991 alone. By the end of
that year, menswear accounted for just fewer than 40 percent of company sales.
International sales were also becoming more important to overall revenues. Licensing
arrangements brought GUESS clothing to more than a dozen countries, with sales
particularly strong in Canada and Japan.
In 1993 GUES and its licensees registered an estimated $700 million in sales.
Advertising spending reached $28 million in 1993; international sales were expected to
reach 25 percent of total sales by the end of 1995. Licensing also continued to be an
important source of revenue, with products now including home furnishings, infant wear,
and junior knitwear. Sales of GUESS watches topped $100 million in 1994, and Guess
footwear sold more than $60 million.
In 1996, GUESS became a publicly traded company when it made its initial public
offering in July. 1998, GUESS launched its new line of high-end ring-spun denim jeans

5. Karyn Mariano
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called Premium Denim for both men and women. It started, in early 1999, its first virtual
retail (e-commerce) store at its web site, http://www. Guess.com. The web site, since its
inception, had consistent interactive success in combining fashion images, information,
and technology. Annual retail and wholesale sales increased by more than 32 percent.
However, the company's profitability declined greatly because of higher retail occupancy
costs due to less productive stores along with additional expenses for new stores; large
inventories due to excessive buying and slowing sales trends; low productivity in its new
Kentucky distribution facility; increased consulting fees; increased expenses with
GUESS Canada; and higher advertising expenses. At the end of 2000, GUESS had 212
stores in the United States and Canada.
With increased competitors, GUESS decided to emphasize what other companies could
not offer customers: the complete GUESS lifestyle of jeans, accessories, and image.
The company continued to be hurt in 2002 with decreasing consumer confidence and
continuing negative economic and political developments. However, the company was
able to effectively manage its inventories and costs while product lines were enlarged,
which increased customer interest. The style of the men's line was improved in order to
create products that were more appealing to customers and more consistent with the
GUESS brand. Extra money was injected into marketing and advertising programs in
order to reinforce the brand's appeal. As a result, independent surveys showed that
GUESS was ranked as one of the top five brands in total U.S. spending by teenage
girls. The next GUESS girl, Paris Hilton, was hired in 2004 to help recapture business
along with the company's glamorous image. The company's web site showed Hilton in
various sexy poses. In the summer of 2004, GUESS launched the Marciano chain, an
extension of its brand Marciano that was designed in the style of sexy, yet sophisticated
apparel and accessories.
Now a billion-dollar multinational retailer, GUESS was one of the most widely
recognized brands in the world. Known for quality, marketing creativity, and popularizing
new trends and styles, the company had seen increased competition throughout its
markets during the first few years of 2000. While jeans remained the foundation of their
style, the company continued to expand its lines to include comfortable, casual clothing
and accessories for women, men, children, and babies to meet every lifestyle. GUESS
possessed licensees and distributors in 232 retail stores in 77 countries throughout
North America, South America, Europe, Mexico, Canada, Asia, Africa, and Australia.
Their wholesale business was represented in over 846 establishments in the United
States. The success of GUESS? can clearly be attributed to the wide range of skills
each brother brought to the table. Maurice was the expert on the business end of things
while Armand had the retail knowledge. Georges provided the fashion sense and
creative direction, and Paul knew how to promote and market the GUESS? image.
Today Maurice and Paul remain the two brothers running the business, both as Co-
Chairman and Co-Chief Executive Officer. GUESS' advertising campaigns are well
known for their innovative and creative images, having been highlighted in international
ad campaigns in nearly every major magazine, on television, and other such mediums.
GUESS advertising has been awarded nearly every distinguished design award, and

6. Karyn Mariano
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The Metropolitan Museum of Art chose the Guess Press Book and Nashville catalogue
for its Permanent Library Collection.
d. Reputation - Since the early development and creation of the GUESS? image,
the Marciano brothers have always worked toward a reputation of high quality, high-end
merchandise that provided the overall “GUESS lifestyle,” which was laid back California
cool, sexy and glamorous.” I have worked at GUESS for a year now and there are
several rules we go by and ways we interact with customers. The number one rule is
the “It’s all about attitude,” they want to encourage confidence and sexiness. According
to the GUESS associate training guide, GUESS is represented by their words, “We
are…Different. Passionate. Innovative. Sexy. Alluring. Glamorous. Young. Focused.
These words describe who we are and who we want to be to our customers.” GUESS
has always been seen as on the cutting edge, with trendy, innovative styles, always
fresh. They take the latest styles and trends and put their own unique twist on them.
e. Stage of Product Life Cycle- Depending on what the year and the decade,
GUESS has at some point, been at every stage of the product life cycle. In the early
1980s, particularly in 1981 when the Marciano brothers opened their first U.S. store in
Beverly Hills, California, their business was in the rising stage. Then GUESS reached
the acceleration stage when they began to expand, grow and their advertising started to
feature new and creative ideas with models featured outside. GUESS has been in the
mass acceptance stage for the majority of the 1990s and into today. In the early 2000s
GUESS was going through a slight decline stage because of the September 11 th attacks
and the recession that followed. For the new cosmetics line called, GUESS who’s hot?
The rising stage would best describe this new line. Up until now, GUESS has been able
to offer their customers almost everything they need for a complete outfit, whether for
daytime chic or nighttime date. However now with the introduction of our new cosmetics
line, the consumer is now able to have a “one stop shop” for all their high-end shopping
needs, and all from a brand that they know and love. The line will be in the rising stage
or introductory stage for a little while, during which a lot of money and time will go into
the advertising and promotion of the line in order to get the word out and create buzz
around it. Our ads have always featured beautiful women who embody sexiness and
glamour, and therefore we wanted to introduce a new GUESS spokeswoman to
represent our new cosmetics line, who absolutely embodies everything GUESS stands
for, Eva Mendes. Having a celebrity as the focal point of our campaign is another
surefire way to create commotion around our new line and draw attention to our
cosmetics. We want to show our customer that they can expect the same great quality
in our cosmetics as they have come to expect from our other GUESS lines. We will
discuss her role in the campaign further when we get into what the ad campaign is
composed of. The Company's operates in four segments: retail, wholesale, European
and licensing. During the fiscal year ended January 31, 2009,(fiscal 2009), 46.7% of the

7. Karyn Mariano
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Company's net revenue was generated from retail operations, 14.2% from wholesale
operations, 34.3% from European operations and 4.8% from licensing operations.
f. Market Share-
Company Guess? Inc
Profile:
Ticker: GES
Exchanges: NYSE
2008 Sales: 2,093,400,000
(Year Ending Jan
2009).
Major Industry: Apparel & Textiles
Sub Industry: Apparel Manufacturers
Country: UNITED STATES
Employees: 9900
Fiscal Year 2009
Results:
Total net revenue for fiscal year 2009 increased 19.6% to $2.09 billion from $1.75 billion
in the prior year. The Company's retail stores in North America generated revenue of
$978.0 million for fiscal year 2009, an increase of 13.4% from $862.4 million in the prior
year. Comparable store sales for fiscal 2009 increased 1.0% compared to the same
period a year ago. Net revenue from the Company's wholesale segment, which includes
its Asian operations, increased 14.6% in fiscal year 2009 to $296.2 million from $258.4
million in the prior year. Net revenue from the Company's European segment increased
33.5% to $719.0 million in fiscal year 2009, compared to $538.4 million in the prior year.
Licensing segment net revenue increased 10.5% to $100.3 million in fiscal year 2009,
compared to $90.7 million in the prior year. The Company also announced today that its
Board of Directors has approved a quarterly cash dividend of $0.10 per share on the
Company's common stock. This dividend will be payable on April 17, 2009 to
shareholders of record at the close of business on April 1, 2009.
4. Promotion Situation Analysis-
GUESS has always been known for their innovation and creativity when it comes to
their ad campaigns. They were one of the firsts to take their models from out of the
studio and into a real life setting. They had a “wild west” theme in the Arizona desert
and sunlight striking their beautiful faces and creating real shadows and the wind in their

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hair helped to change the way advertising was done. Therefore it is crucial to keep up
these high expectations when it comes to the current advertising and our upcoming
campaign for our cosmetics line, GUESS Who’s Hot? Right now the trend in advertising
among our competitors is the edgier, more controversial, the better. Designers like
Dolce and Gabbana and Louis Vuitton are constantly pushing the envelope to create
buzz over their campaigns and attract attention towards their brand and products.
Although Dolce and Gabbana and Louis Vuitton are not in direct competition with
GUESS because they are a luxury brand, their ads are featured in the same fashion
magazines and forums as us, and therefore detract attention from our ads. GUESS
does not want to create controversy, but we do want to create sex appeal and push the
envelope. GUESS will continue to come up with new and innovative ways to show the
beauty of the female body and face in tasteful yet alluring, and glamorous ways.
Consumer demand is on the rise when it comes to cosmetics, due to the hard economic
times. People are waiting to get that sexy dress and instead they’re opting for new,
fresh makeup to change their looks, because it’s less expensive and can be worn in
more than one way. Makeup is giving women an escape from the stress and anxiety of
hard times. Consumer demand for cosmetics can be used to our advantage by
advertising the need for makeup because of its affordability and versatility. GUESS
intends to create awareness by focusing on our brand integrity and years of dedication
to quality and style. We will provide understanding by informing consumers of the easy
“how to” booklets that come with certain kits, like the smoky eye kit, which demonstrates
how to easy create the hottest makeup trends, “everyone can be a makeup artist.”
GUESS will create the changes in attitude that it is known for with its sexy ads and
glamorous models, intensified by our cosmetics, “you feel sexier with our makeup
on.”We will create reinforcement to buy GUESS Who’s Hot? cosmetics by informing
customers that if they buy our new line they will get the same great, high quality that
they are accustomed to from GUESS and our mineral foundation will be good for their
skin and their wallet too. Finally, GUESS will create changes in behavior by promoting
our free testers at select GUESS stores where our new line is available, and thus
allowing our loyal customers to stay true to GUESS and once the try our cosmetics
they’ll fall in love with GUESS all over again. Also consumers are encouraged in our
advertisements to log onto our website and sign up for email in order to receive free
samples of eye shadow and mineral foundation in their own shade. This will create
brand loyalty by signing up for email that will include special events announcements and
coupons as well as promote the use of and eventually purchase of our cosmetics.

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5. Target Audience-
a. Market segments
i. Past- In the past, GUESS, inc. has targeted late teens to early 30s men
and women who like to always look stylish and put together. The ideal GUESS
customer has style, taste, sex appeal, glamour and likes high quality, great fitting
clothes that they can turn heads in. The GUESS merchandise tends to be moderately
priced, with jeans ranging from $89- $168. Dresses usually are around $100. Our
customers have discretionary income that they want to spend on higher quality, stylish,
cutting edge designs.
ii. Potential- Potential customers for GUESS are those looking for a one
stop shop for all their styling needs. We want our potential customers to see that when
they have an upcoming date, special event or just want to look good, all they have to do
is come to GUESS and we can dress them from head to toe, including makeup now too.
Adding a makeup line to the GUESS Inc. brands will solidify the fact that we have all
your needs to keep up with the season’s hottest trends. The new makeup line can also
bring in potentially new consumers who are looking for a fun, and edgy cosmetics line
that mimics the sexy look in our past ad campaigns, our signature smoky eye and red
lips. These two looks are very hot right now and have been seen in high fashion
magazines as well as on the runway. Our fool-proof makeup will teach you step by step
how to create the perfect smoky eye and the vibrant colors last all day at the office or
school and into the night. We have the potential to gain new consumers through our
cosmetics and keep brand loyalty from our existing customers by again coming up with
new and creative ideas and lines.
b. Market needs and desires- The hottest trends in makeup right now are bright
colors for spring in shades of purple, green and gold. The smoky eye and “cat eye” are
big trends still and have been throughout the year. The smoky eye is a staple in past
GUESS print ads and will continue to be for our cosmetics line, GUESS Who’s Hot?
The red lipstick is very predominate in our most recent ad campaign and will continue to
be for our cosmetics line, it has come to be associated with the GUESS brand, which
exudes sexiness like red lipstick. In tough economic times, consumers look for brands

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that they are familiar with and can trust and rely on. GUESS brands are known
throughout the world for their high quality and creativity. Our customers want to spend
their money wisely, and they know that buying a GUESS product is buying a long-term
product, that they can get their money’s worth. Also cosmetics sales have gone up in
recent months while the economy has gone down. When people have limited
discretionary income, instead of going out and buying a new outfit, they’ll go out and
buy new makeup, which is a cheaper alternative to clothing and they can still change
their look and feel good at the same time.
c. Characteristics of Market-
i. Geographic- GUESS has stores all over the world, our best selling
stores have been in the U.S., Canada and Asian markets. Therefore GUESS will launch
their new cosmetics line in select, best selling stores throughout the U.S., Canada and
Asia and then depending on the success of the line, eventually be added to all GUESS
stores. In addition to the line being offered in select stores, it will also be made available
online at the GUESS, Inc. website. The same makeup products will be offered in all
three continents, however based on market research, we will focus on a specific color
family for each continent. In the Asian markets, we will have foundations, powders, and
eye shadows to best compliment their skin tones. Bight eye shadows are more
prominent in Asian markets as well so we will feature more shades in a rainbow of
colors. In the U.S. and Canada we will again have foundations, powders, and eye
shadows that compliment a wider variety of skin tones. Warm, bright eye shadows are
popular here for the upcoming warmer seasons.
ii. Demographic- GUESS will conduct market research in the best selling
stores to focus on what their target customer demographic is made up of. For example,
in our Boston store, the majority of our customers are tourists. Especially with the
economic conditions, tourism has been on the rise in the U.S. because of the lower
prices here and the currency exchange rates. European customers are most frequently
shopping in GUESS right now and they demand the most vivid, bold and beautiful
colors. To appeal to our domestic consumers well will push the one stop shopping that
our stores offer, now with accessories like shoes, jewelry, purses, belts, and cosmetics
to complete the look of their new outfit. Our cosmetics are designed to complement our
clothing and complete their look, from casual to dressy. Our customers are accustomed
to buying high quality and therefore don’t mind spending a little more money in order to

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get what they want. Our makeup, like the rest of our brands, will be moderately priced
and of high quality pigments and minerals.
iii. Psychographic- GUESS consumer’s psychographic needs vary
according to their location and upbringing. In the U.S. our consumers are looking for
self-confidence and sex appeal and GUESS clothing and accessories help to boost their
self image and encourage glamour and confidence. In Japan, consumers look for
unique finds and color, bold prints. In the Asian markets, consumers look for edgy, new
trends, they want up to the minute fashion finds, and again GUESS is the perfect match.
In Europe, consumers look for sophisticated, sexy and trendy clothes and accessories
with the finest quality. They value hand-sewn denim and detail. GUESS needs to
incorporate these values and self-image into their cosmetics line. In the U.S. the line will
cater to consumers needs by advertising the sex appeal and glamour that you can
achieve by wearing our makeup along with our apparel. In Japan, our advertising will
focus on the latest trends in conjunction with our new and unique makeup and bright
packaging. In the Asian markets, our advertising will be centered around edgy, off the
runway makeup looks and how to instruction booklets that comes with the makeup to
get the exact look. In European markets, our advertising will be concentrated on
sophistication, brand integrity and high quality.
iv. Behavioral- The 2008 fourth-quarter results from the American
Customer Satisfaction Index, known as ACSI, saw consumers' satisfaction with the
goods and services they buy inch up. The index climbed to 75.7 on the ACSI's 100-point
scale, up 0.9 percentage point from the third quarter. Normally consumer satisfaction
goes hand in hand with consumer spending, however lately this is not the case. With
unemployment rates at an all time high, consumers are finding it harder to make ends
meet and are pulling their spending back, while others are saving their money all
together. It’s hard to get a feel for customers right now in this economy. Are customers
most satisfied because there are less people in the stores and therefore more elbow
room? Or are shoppers getting more attention from sales representatives because the
sales rep to consumer ratio is much better now, even as stores cut back on hired help?
These are the questions we must ask ourselves before deciding how we will market our
product to a hard pressed consumer base.
v. Pricing Strategies Employed- Pricing strategies for our GUESS
cosmetics line, GUESS Who’s Hot? will be priced according to our competitor’s pricing

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and in accordance with our pricing policies and what our customers are willing to pay for
high quality products. GUESS is a moderately priced store with high quality goods. Our
stores are generally located in upscale malls as well as streets. For example we have
stores on Newbury Street, Boston, SoHo, New York City, and on Rodeo Drive in
Beverly Hills. Customers who shop on these streets and areas are looking for the best
quality and selection and are willing to pay a higher price for better garments that will
last them a longer time. M.A.C. cosmetics is moderately priced and known for its variety
of bright colors. Their eye shadows are around $14, so therefore based on our
competition and what goes into making our cosmetics, our shadows will be priced at
$12 each for individual shadows, and $18 each for eye shadow quads (featuring 4
shadows in the same color scheme that complement each other and create a more
dramatic look). Foundations of our competitors ranged from $19-26, specifically for
powder foundation, which is what we will be offering. Our foundation based on our
findings and ingredients of all natural minerals will be priced at $22. Lipsticks will be
priced at $14 and lip gloss will be priced at $12, after being compared to competitors
and what goes into making them.
d. Definition of Customers:
i. Past, Present, Future- In the past the Marciano brothers started to
attract customers because of their innovative denim styles in a stonewash and by
constantly reinventing themselves. GUESS continues to do the same today. One of the
main reasons behind our success is our continuous creativity and innovation. We will
attract more customers for the future by continuing to bring new merchandise to the
table and now we will attract a whole new market by adding cosmetics to our line,
ensuring GUESS as the one and only place you need to go to guarantee a quick, easy,
stylish and complete shopping experience. Our past customers will stay loyal to us
because we continue to bring them new and exciting brands that compliment and add to
our existing ones. Customers have grown accustomed to our high quality and expertise
in the fashion industry and know they can rely on us for cutting edge fashion. Our
present customers will continue to shop with us as long as we continue to go above and
beyond to offer the best merchandise at the best quality we can at an affordable price.
ii. Characteristics-

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1. Our customers share the values of getting the most bang for
your buck. Our customers and potential customers want to
spend good money to get good quality products. In the
cosmetics industry, consumers go on “testers” and by brand
integrity to determine if they want to purchase the product.
GUESS customers have known our brands for over 2 decades
now and have come to expect the highest quality from us.
2. GUESS customers possess attitude, the attitude that says “look
at me” and turn heads as they walk down the street. The
GUESS customer is “all about attitude.”
iii. What they like about “us” and/or our products- Our GUESS customers
like our continuous dedication to bringing them the best and most trendy
fashions from the runway, at high quality and at prices that are affordable.
The GUESS customer is always expecting the best and always wants
what is new and flattering.
6. Brand Communications-
a. Past Ad Campaigns- GUESS has always been recognized for its outstanding
ad campaigns and especially for taking risks and trying something new and interesting.
GUESS ads were the first of its kind to move the models from inside a studio to outside
in the vast, open desert of Arizona. GUESS wanted to portray a “Wild West” theme and
take these beautiful women outside so that the sunlight could better compliment their
skin tones and outfits. A majority of the GUESS models have gone on to become
international stars and got their start right here at GUESS. Our GUESS Models have
always portrayed our trademark sexy attitude in all of our ad campaigns. In our ad
campaign now for the new spring 09 collections, we feature the smoky eye and red
lipstick with a look that says, “I know I look good.”
b. Possible Future Appeals- For future GUESS ad campaigns we want to
continue with the same look that GUESS has been known for. “The attitude” is
something that has always been a staple of GUESS and our models must always
convey that type of sexiness and confidence. For our cosmetics line we will feature Eva
Mendes as our spokes model who will be in a few of our upcoming print ads. In addition
to Eva Mendes as the face of our new cosmetics line, we will also feature edgy cartoon

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sketches of girls will bold, bright colors of makeup, showcasing our signature makeup
looks- the smoky-eye/ cat-eye and bold red lips. We want these cartoons to draw
attention and attract a fun, energized and outgoing consumer.
7. Identification of Competition-
a. Primary competitors- GUESS’s competitors have considerable grown in the
past few years. As an apparel industry focused on our denim, the denim industry has
seen a tremendous growth in the past few years. In the last two years, a host of new
players has stormed onto the blue-jeans scene, producing everything from the wider,
funky look that appeals to teen-agers to more stylish cuts that older folks feel
comfortable wearing to work on dress-down Fridays. And while the industry has always
attracted upstarts -- Guess grew from one style sold at Bloomingdale's in 1981 to a
$486 million business -- what is different this time is the sheer volume of the
competition. Levi Strauss is one of the primary competitors, growing from a
predominately jeans company and into other apparel. Calvin Klein Jeans are another
popular denim brand that offers a wide range of other apparel. And the newest denim
lines to hit the scene are True Religion, and Hudson and other high-end labels that offer
the latest styles and trends like GUESS does, and are offered in department stores as
well as the GUESS label.
b. Secondary competitors- J.C. Penney and other moderate-low priced denim
labels that can be found in department stores are competitors due to their similar styles
but cheaper prices. Tommy Hilfiger jeans were a major competitor in the 90s but had
started to fade away for awhile, however they have recently revamped their denim line
and have started to gain popularity, so we’ll have to keep our eye on them in the near
future.
8. Advertising Objectives-
a/b. Benefits of our cosmetics line ads will be in how the makeup makes you look
and feel. Because GUESS is all about the attitude, our makeup is all about boosting
your self confidence and making you feel sexy and glamorous. We will gain customer
loyalty by reinforcing the GUESS brand that they’ve known and loved for a long time
and have become familiar with through the years. We will encourage purchases through
the idea that you can test our cosmetics before you buy them. We will off a free tester

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station at the select stores that feature our cosmetics. The station will consist of eye
shadow, foundation and lip gloss/lipstick testers, where you can test with q-tips and
cotton balls to mix and match shades to see what best suits your skin tone. Also our
sales people will be specially trained in the cosmetics that we sell and will be trained to
answer all questions and concerns about the new line. We will persuade our potential
customer to take action by encouraging them to test our new products, because they’ve
got “nothing to lose,” by just testing. We will also persuade by reinforcing brand loyalty,
and trust from a brand that has been around for a long time. We will arouse interest by
advertising using fun and unique cartoon drawings of our “attitude” flaunting models in
bright makeup colors and glamorous styles. Also we will encourage customers to go to
GUESS store and test out our cosmetics and a sales representative will customize their
very own personal makeup kit, which comes with a complimentary free GUESS makeup
bag. The sales rep will match the makeup to your skin tone to ensure the most natural
and true fitting foundation. Finally we will inform and create customer awareness by
informing customers that our foundations/powders are preservative free, and made up
of completely nature minerals. Mineral makeup is a hot trend right now and this will
create buzz around our makeup and at the same time, GUESS has introduced GUESS
GO GREEN, making green products and encouraging recycling of denim for a discount
on new denim. Most importantly, 10% of all the sales of GO GREEN products will be
donated to an environmental protection agency in an effort to help protect and save our
environment. Therefore our mineral foundation will be incorporated in the GO GREEN
campaign, donating 10% of its sales to the EPA.
9. Tone-
Reinforced throughout the years at GUESS, has been the “attitude,” which is shown on
the faces of our models and in how we train our employees, it comes full circle here at
GUESS. Therefore it is important to continue this tone in our ad campaign for our new
cosmetics line, GUESS Who’s Hot? this is also a play on the confident, sexy and
glamorous attitude here at GUESS. Our ads will feature Eva Mendes who is known for
her sultry looks and sexy attitude and exotic beauty. GUESS has always prided itself on
being unique and innovative and we want our makeup to showcase that as well too.

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10. Media-
Traditional forms of media will be used in addition to other forms and supplemental
media forms. GUESS has always strived to make it known and visible in the top fashion
magazine in the nation, as well as the world. GUESS has print ads in magazines such
as VOGUE, ELLE, In Style, Allure, and Lucky. These magazines are extremely high end
and showcase the best of the best in fashion. We will continue to show case our print
ads in these magazines as well as page 6 in the New York Post, a popular gossip and
fashion section of the newspaper. Online advertisements have been on the rise,
especially in the cosmetics industry. According to market research, cosmetics have
seen an increase in their purchases online as well as a response to the ads online.
GUESS cosmetics will feature ad campaign pop-ups on fashion websites such as vogue
magazine, Elle, Harper’s Bazaar and other sites that have heavy traffic flow. These pop-
ups will show case our cartoon sketches of the ads as well as the Eva Mendes
campaign will be displayed inside the hard copies of the magazines. Sales promotions
will be held for the opening of our new cosmetics line, where 10% of proceeds from the
sales of our green mineral foundation will go towards the protection and insurance of
our planet’s health and well being. We will also hold special events where GUESS List
members will be able to come in and test and buy the makeup before anyone else.
11. Advertising Message-
i. The message is to keep with the overall GUESS image of alluring, sexy,
passionate, glamorous, energizing and playful and tie it all together by coming
out with this cosmetics line. Now GUESS truly is a one stop shop where our
customers can continue to be loyal to us by completing their entire look now with
the cosmetics that compliment her.
ii. The benefits are ease of shopping now due to everything being in one store,
under one roof. These products are all guaranteed the same great quality that
you have come to know and be accustomed to by the GUESS brand. We want
our customers to be encouraged to try on our makeup and get our free sales
representative guide on how to do our signature smoky eye and red lips. We
even sell makeup kits designed to create the perfect smoky eye look.

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iii. Product personality consists of attitude, attitude, and attitude. Emerging from a
company known for its high-end glamour and high quality, consumers will feel
confident in their purchases with the GUESS brands.
i. Visual Appeals
1. Bright bold colors and funky, edgy cartoons and makeup sketches will draw
the attention of consumers and encourage them to go test out our new cosmetics
line where they will fall in love with how easy it is to use and how long and bright
the color stays on for.
2. The packaging will consist on bright, bold colored packaging, with the GUESS
signature triangle logo on each package of makeup.
12. Budget-
In order to keep up with our evolving image and the high expectations that GUESS has
come to be known by from our award winning advertising campaigns in the past, we as
a company has decided to put a lot of financial backing into our new ad campaign,
GUESS Who’s Hot? in order to create buzz around the new line. The cost to run
GUESS ads in VOGUE and other high fashion magazines ranges depending on the
size of the ad and where in the magazine it will be featured. GUESS has always been
featured in the first few pages of the magazines where other high end brands are
featured, and we will continue to do so for our new cosmetics campaign. Therefore for
the budget of this campaign GUESS has put aside 2.5 million dollars towards the
advertisement and promotion. We are also in the process of looking for a location for a
billboard that will feature Eva Mendes, our GUESS Who’s Hot? spokeswoman. The
location that we have been scouting is in the New York City area because of its
thousands of Our ads will also run internationally in fashion magazines such as Japan
Vogue, French Vogue and other international fashion publications.
13. Promotion Mix Recommendations-
We at GUESS will be focusing on all major aspects of the promotional mix, product,
place, promotion and price. The product line will be the main focus, will emphasis on the
brand integrity and trustworthy brand image that we have been known for. Our ads will
also emphasize the price points, especially in these hard economic times, we feel it is

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extremely important to focus on our lower priced cosmetics compared to our
competitor’s prices. The place or distribution will be done in Europe, ensuring the finest
quality cosmetics and natural ingredients that go into the final product. Europeans are
known for their high fashion and high quality makeup and therefore we want to
emphasize that our product is made from the finest quality. Our European
manufacturers have years of experience in the cosmetics industry, we are teaming up
with well known cosmetics line, in Europe that is known for their product quality. They’ve
already built a fine reputation and on top of our world recognized brand we have full
confidence that consumers will be able to trust that are products are the best quality for
their money.
14. SWOT Analysis-
Strengths- The strengths of the campaign first of all stem from the GUESS brand
integrity and our commitment to uphold the highest quality for our customers. GUESS
has been around since the early 1980s and in that time we have grown and established
ourselves as one of the world’s leaders in denim and apparel. GUESS has gone on to
expand into many licensees such as fragrances, sunglasses, and jewelry and now
cosmetics. When consumers see our GUESS logo, the triangle symbol, they can expect
great quality and expertise. Strength is also in the international growth and success that
we’ve had in the past decade. The Asian market is one of our most successful and thus
has great potential for even more growth with the addition of our cosmetics line. Finally,
another strength GUESS has is from its world famous advertising. Because GUESS has
been acknowledged and awarded in the past for their advertising, people have come to
expect a lot for our ads. By having Eva Mendes sign on as the face of our new
cosmetics line we will again achieve the same high expectations in our ads. Having
such a well known and respected actress as our spokeswoman will generate buzz and
consumer interest in the new line. Studies have recently shown in the U.S. that
consumers appreciate the ease of shopping at “one stop shops” where they can find
everything they need for a complete look with a brand they trust and love. GUESS now
has the opportunity to become that one stop shop because now our store is complete
with our new cosmetics line.
Weaknesses- There is a lot of competitors out there right now when it comes to
cosmetics. Competitors that have been well established in this industry for some time
now, this could be our biggest weakness. Similar to our consumer’s brand loyalty to us,

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consumers usually stay true to specific cosmetic companies when they find something
that works they want to continue using it. Companies like M.A.C have a great reputation
because of the amount of exposure their brand gets from fashion show use and
celebrity followings and their celebrity, “Viva Glam” campaign. M.A.C. is a house hold
name and will be one of our biggest competitors. We need to make sure that with the
new cosmetics line we don’t lose sight of what GUESS is at heart, an apparel company
that is famous for our denim. We want to gain customer loyalty and pick up addition
lifelong customers through our cosmetics line, not lose customers because we lost sight
of why GUESS was started in the first place.
Opportunities- There is several opportunities that we can gain from our cosmetics line,
such as the ability to continue to gain customer loyalty by constantly reinventing
ourselves and growing as a brand. Also we can give our customers the total package
now. Not only can our customers achieve the look in our ad campaigns which are
always sell out immediately in stores, but they can now get the sexy, alluring makeup
that is done on the models in the campaigns too. The makeup is very distinctive and
pulls together the “attitude” that is GUESS, that confidence. By bringing in Eva Mendes
as our spokeswoman we also can create a lot of buzz not only over our new line but
also over the brand as a whole. Eva Mendes in our ad campaigns will draw more
attention to the GUESS name domestically and internationally.
Threats- The threats that could hurt us are first of all the current global economic crisis.
Is this really the time to be starting a new cosmetics line and venturing out into a
territory that we are not accustomed to? Will consumers turn on us if they see how
much money we’re putting into this ad campaign? At the same time, our customer is
more middle to upper class and therefore could have more discretionary income than
most people at this time. How will people respond to a makeup line from a moderately
priced retailer?