CR Beauty is a new luxury skincare company based in Italy that uses exotic ingredients like viper venom and snail caviar in its products. The company wants to enter the high-end beauty market. Key issues include a lack of visibility, an inconsistent price point, and a controversial spokesperson. The marketing strategy proposes increasing prices to position the brand equally with competitors like La Mer and La Prairie, while advertising in luxury magazines and selling through high-end hotels and spas in major cities to maintain exclusivity.

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Kyle Rautiola, Katie Harlin, Abbey Herfurth

2. 2
Table of Contents
Executive Summary ........................................................................................................3
Situation Analysis............................................................................................................4
Market Analysis..................................................................................................................................................4
SWOT Analysis.....................................................................................................................................................6
Services....................................................................................................................................................................9
Keys to Success....................................................................................................................................................9
Target Market...................................................................................................................................................15
Trends...................................................................................................................................................................15
Positioning..........................................................................................................................................................16
Marketing Mix...................................................................................................................................................16
Possible Alternatives....................................................................................................18
Financials............................................................................................................................................................19
Appendix.........................................................................................................................24
Work Cited ......................................................................................................................34

3. 3
Executive Summary
CR Beauty is a high-end beauty company that focuses on repairing and
improving the skin using natural and exotic ingredients such as viper venom
and snail caviar. These products tighten and tone the skin as well as provide
the skin with a new youthful glow. The company is based out of Rome, Italy.
CR Beauty is still in its beginning stages with supermodel Nina Moric as the
face of the line.
CR Beauty wishes to break into the luxury beauty market by
increasing the price point to compete with better-known brands, while also
maintaining its exclusivity.
The company wants to stay away from mass advertising and wants to
only be sold in three locations in Rome, three locations in Milan, three
locations in Tuscany, and three locations in Paris. We are looking at ways to
increase the web presence and accessibility, and to enter the hotel and spa
market. CR Beauty hopes to make it over into the US market based on profits
made in Europe.

4. 4
Situation Analysis
The Impossible beauty line is an upcoming, high-end line of lotions
that has just recently emerged into the beauty and cosmetic market with
three products: Cailin, Calimé, and Naimi. The line has only been introduced
through its website, and has not yet reached any shelves, spas, or lounges.
The goal is to merge the Impossible line into the high-end beauty market by
increasing the price point and advertising.
Market Analysis
Our customers are woman already purchasing high priced products and who
consider their appearance to have the utmost importance. The age group is late 30’s
to 60’s old. See Appendix E.
Currently, this market has nine well-known beauty creams that are CR
Beauty’s top competitors. La Mer and La Prairie are the two most similar to
Impossible, but they have a much higher price point. The market in general only has
two sides to the spectrum: either cheap, or expensive (400+ Euros). The market
needs a product that is between the two ends, one that is around the 250 Euro price.
Accurate and reliable data (charts, graphs, sales logistics) based on sales and
trends, specifically from top competitors, were not attainable. We decided to
instead research the newest products on the market, from inexpensive to expensive,
and what each product was trying to achieve. The most common factor in all the
newest products was anti-aging and moisturizing without leaving a film or an oily
feeling. Women are constantly trying to hide signs of aging, and will continue to buy

5. 5
the newest and latest product that claims to either slow down the aging process,
hide/heal wrinkles, or both. Therefore, there will always be a need, want, and
growth in creams that are anti-aging.
Once the CR Beauty company gathers a loyal clientele base, the possibility of
growth and expansion is definitely plausible. The target clientele likes to indulge
and have the latest and greatest product, particularly the most exclusive products.
The idea of exclusivity is very important to make this product sell at the price point
we hope to set. The unusual ingredients, caviar and viper venom, in Impossible’s
line also set it apart from a majority of other skin care lines. However, La Mer and
La Prairie do have similar ingredients and are trying to achieve the same results as
Impossible.
Deciding how to market these products was a difficult task because CR
Beauty does not want to mass advertise. We believe a way to generate clientele
without mass advertising would be to place the products in Sky Clubs like Delta.
There are currently 33 locations that have the shower amenities. We have reached
out to Delta to see what their policy is when it comes to consignment of products,
but have not yet received a reply.

6. 6
SWOT Analysis
1. Unique product and ingredients
2. Benefits are apparent over period of time
3. Supermodel endorsement/proof of results
of use
4. Desirable packaging
5. Opportunity in the market (consumer wants
to look younger)
6. Consumer price point more attainable that
competitors’ price point
7. Appears to be “equal” with the most
expensive products in the market because
of ingredients, packaging, model
endorsement, etc.
1. Lack of accessibility (only available online)
2. Price point too low
3. Lack of social media presence
4. Model has a questionable reputation
5. CR Beauty has no reputation – need to create
buzz about the product
6. Website and advertisements seem to focus
more on the model instead of the product
7. Website has too much going on
8. Unclear on the mode of research used to
create the product, also was it tested on
humans or animals?
9.
1. People will always want to appear
younger
2. People are very interested in organic
products
3. Since there’s no preconceived notions
about the product or the company, CR
Beauty has the opportunity to shape the
opinions of their customers
4. Possibility of merging with a more well
known brand if the company really takes
off
5. Issuing sample sizes at events/galas
would create buzz about the product
1. Companies with solid, good reputations
and publicity
2. Possibility of a customer having adverse
side affects
3. Miss window of opportunity into the
market
4. Misleading advertisements/incorrect
translations between languages
 1. Unique product and ingredients
 2. Benefits are apparent after use
 3. Has supermodel endorsement
 4. Desirable packaging
 5. Opportunity in the market
(consumers always want to look
younger)
 6. Consumer price point is attainable
 7. Appears to contain the same
ingredients as the top-of-the-line
products
 1. Lack of accessibility
 2. Price point
 3. Lack of social media presence
 4. Model has a questionable reputation
 5. Company has no reputation-- need to
create buzz about the product
 6. Advertisements and websites seem to
focus more on the model instead of the
product
 7. Website is too busy

7. 7
Competition
High-End Market-
Any company that sells similar products can be seen as
competition especially if they have a strong brand name. This
includes products that provide skin firming, anti-aging, rejuvenation,
moisturizing and hydrating and skin repairing agents.
The ten brands we found to be CR Beauty’s biggest competitors
in the high-end cosmetic market are as follows: Chanel with an
average price of 340€, Guerlain with an average price of 375€, Amore
Pacific with an average price of 360€, Sisley with an average price of
400€, Estee Lauder with an average price of 200€, Shiseido with an
average price of 200€, La Mer with an average price of 200€, Kanebo
with an average price of 500€, La Prairie with an average price of
600€ and Cle de Peau with an average price of 250€.
Through field research, we were able to gain a first-hand
understanding how each company markets its different brands. The
elements taken into consideration were packaging, placement within
the stores, ingredients and supply. From this, we found that three of
CR Beauty’s largest competitors include La Prairie, La Mer, and Sisley
because they also have similar ingredients to Impossible.
The highest price points for these products ranged from
400,00-600,00€. See appendix O-1 and O-2 for data regarding La
Prairie’s sales over the past two years.

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Spa Market-
The market for beauty product lines differs slightly than CR
Beauty’s high-end competition. We found it beneficial to conduct an
environmental analysis on three five-star hotels in Rome with
exclusive spas. This analysis allowed us to make conclusions about
smaller parts of the marketing process so we could focus on certain
areas and research more in depth to gain a deeper understanding of
CR Beauty’s spa competition. These spas use only one or two brands
for all treatments, and only sell those products in their boutiques.
This can be attributed to the vast amount of products that are
included in each line. For example, the Caschera Spa at the Regina
Hotel Baglioni functions as both the brand of the spa as well as the
brand of the cosmetics.
For CR Beauty, we recommend expanding CR Beauty’s line to
help enter into the spa market. There is a greater chance that
customers buy the products used in their own spa treatments as
opposed to another product that the spa sells alongside.
According to Caschera Spas, the line of luxury cosmetic
products is only found in hotel spas with the brand Paolo Caschera.
Products by Caschera Cosmetics are a concentrate of active principles
of high quality, a unique blend of precious oils and natural
ingredients rejuvenating of the skin, increasing the longevity of cells
and fighting the skin aging process, as does CR Beauty.

9. 9
Elemis makes an effort to ensure that all essential oils and
plant extracts are of premium medical grade with high therapeutic
value. Elemis plant essential oils are the most potent and are
extracted only once from the plant. They also use organic essential
oils called Absolutes‚ the purest form of living energy extracted from
the plant.
The spas we found that have the most exclusive clientele and
the most luxurious lotions were found on websites such as Forbes 100
and Trip Advisor among others. They were ranked as some of the
most world-renowned locations to relax. We picked three from each
of the cities specified to us by CR Beauty. Those spas are located in
Milan, Rome, and Paris with an additional spa in Tuscany.
Services
The primary products are Calin, containing viper venom, Calimé,
containing snail extract, and Naimi, containing red peppers. The creams
rejuvenate the skin and leave the skin firmer and brighter, while the
presentation of the creams give the customer the ultimate sense of luxury.
Keys to Success
Our packaging and exotic ingredients sets CR Beauty apart from the
rest of the industry. The gold, illuminating bottles attract the eye. The
snakeskin book-like boxes also draws in the consumer. They are easily able
to stack or line their boxes neatly in their homes. The name Impossible is
another key to success. Its message is “make the impossible possible”. Broken

10. 10
into two parts, it also stands for “I’m possible,” which is one of CR Beauty’s
overall functions: to repair the skin. In order to stand above other
competition it is crucial to accentuate these aspects. However, we believe the
reputation of Ms. Nina Moric may not be the most ideal spokesperson going
forward.
Based on research of different airlines and the services they provide,
in-flight magazines SkyMall and Open Skies both provide platforms for which
to advertise.
SkyMall is an in-flight entertainment catalogue known for selling
unique electronics, decor, travel gear and clothing. Approximately 20 million
copies are distributed to airplane seat pockets annually and read by 650
million passengers. 70 percent of passengers are accounted for as reading
the magazine, and 90 percent of these people are US passengers. In 2009, the
website generated 80.5 million in revenue, and the company was purchased
by C&A Marketing in April 2015. Companies advertising in the magazine are
asked to drop ship the products to the customers. See Appendix L.
Advertising Impossible in a magazine that receives as much traffic as
SkyMall could have multiple benefits for the company. Two of these include
the products being seen by millions of passengers, and since the majority of
passengers are American, it would aid in helping the company emerge into
the U.S. market.

11. 11
Open Skies is Emirates’ monthly in-flight entertainment. Passengers
encompassing 117 destinations and 69 countries fly Emirates. Every Issue
reaches approximately 3 million people. Emirates is known as a high-end
European airline, which would keep the clientele for CR Beauty high-end as
well. See Appendix D for a graph depicting the frequency of destinations that
Emirates flies to.
There needs to be more advertising for the product, and we think that
because we want the product to be exclusive, SkyMall may not be the right
direction to go. Products that are advertised in SkyMall are electronics,
household items, and many miscellaneous items, not necessarily cosmetics.
We recommend still advertising in magazines, but in the high-in fashion
magazines. For Italy, we recommend Grazia, VOGUE ITALIA, and Gioia. For
France, we recommend WWD, Marie Claire, and VOGUE PARIS. See appendix
Q.
Key Problems
CR Beauty’s main problems include: the lack of visibility, lack of
direction and depth within the product line, inconsistency with the price
point, and a spokeswoman with a questionable reputation. In addition, the
website is very disorganized and is not pleasing to the eye.
Because CR Beauty is new, they have not been able to develop enough
visibility, which is what leads to a solid client base. Most of CR Beauty’s

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target customers already have a luxury beauty brand that they are loyal to,
and CR Beauty needs to be conscious of this when marketing to the same
clientele.
CR Beauty wishes to raise the price, but not too much because they do
not want to take advantage of their customers. However, they also would
prefer not to mass advertise, making it difficult to raise the price point of a
new product in such a competitive market. Without a range of products, it is
difficult emerge into the spa market as well. A competitor like Elemis has a
variety of products including: anti-aging products, cleansers, toners,
exfoliates and masks, facial oils, eye creams, serums and boosters,
moisturizers, night creams, self-tanning, and travel size products.
In addition, the spokes model, Nina Moric, is associated with negative
articles would could in turn lead to bad publicity. See appendix A for a
picture of the first results that are shown when you Google search her name.
The first few results are pertaining to her suicide attempt, the current
situation regarding the custody of her son, and her abusive former husband.
The last result shown actually refers to her as a “joke.” We do not feel like
having such a controversial spokeswoman is conducive to grow this brand to
the greatest extent.
Finally, the website for CR Beauty is very disorganized and is not
appealing to the eye. See appendix B for three of their competitors’ home

13. 13
pages and some attributes about them. See appendix C for a photo of CR
Beauty’s website.
It is unclear why there are butterflies and water droplets as one
scrolls through the website. With the beige background it also seems very
bland. Opening the website with a photo of Ms. Moric just holding the cream
does not lead one to think she actually uses the cream. As we scrolled
through the website we felt a disconnect between sections, and felt it was
hastily constructed.

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Marketing Strategy
CR Beauty’s mission is to bring not only a luxurious product to the
market, but also a luxurious experience by selling to only top-of-the-line
hotels and spas in Rome, Milan, Paris, and Tuscany. CR Beauty expressed a
desire to keep mass advertising to a minimum, if any at all. The creams cost
€10,00-€20,00 to produce and are currently being sold for €150,00-€170,00,
according to the company’s founder. The founder expressedhe did not want
to increase the price too much because it imposes a moral confliction; he
does not want to be taking advantage of a customer. We suggest increasing
the price to approximately €270,00, and then to send a letter the valued
customers they already have to inform them the lower price was a
promotional deal. We picked this price point based on the prices of our
greatest competitors, La Mer, La Prairie, and Sisley. See appendix N. It will
give CR Beauty the opportunity to be viewed as an equal in the high-end
beauty field, but would still be less expensive than the top brands, making it
more appealing to a potential buyer.

15. 15
Target Market
The buyer for this product is most likely a financially stable woman in
her late 30’s to 60’s who is willing to spend money on her appearance. They
are more likely to desire a product that is not accessible to the general
public; they appreciate the concept of exclusivity. Appendix E demonstrates
our conclusions on target market. The research conducted by Credit Suisse
shows the average amount of Euros spent on skin care products and the
ages of the women buying them. These are the prices for the average
spender, not necessarily the high-end spender. See Appendix E.
Trends
Consumers are increasingly embracing products with ingredients that
are locally sourced and natural or organic certified, as they believe that
they are less harmful on themselves and the environment. From foods, this
belief has now extended to beauty products, and specifically to skin care.
The growing popularity of anti-aging lotions has given rise to a new
category within beauty. The impressive growth of premium anti-agers has
partly been fueled by the increasing number of launches in specialized
serums, as well as creams for specific skin care issues. See Appendix F and
G.

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Positioning
CR Beauty is not currently positioned in the market to have a loyal clientele
base. Once we can create loyal clientele, it will be easier to establish CR
Beauty in this market, and hopefully disrupt our competitors’ strategies.
Marketing Mix
 Product Strategy: In the case that CR Beauty does not keep
Nina Moric as the face of the brand, we believe it would be
beneficial to take her name off of the packaging. We also
recommend that the real estate on the outside of the packaging
be used to give background information about CR Beauty and
an explanation of the product and their purpose. We also
would suggest having the ‘IM’ in “impossible” stand out more.
On the product itself, we would suggest a more secure lid,
perhaps a magnet or a screw. As for the limited edition gold
container, we suggest looking at brands such as Guerlain and
Christian Dior for their presentation. See appendix M-1
through M-4. Through our market research, visiting hotels on
site and visiting upscale beauty shops, we discovered that
getting the products into a five-star hotel would be difficult
without a full product line like his competitors. In our opinion,
we think it would be beneficial to expand the line and focus

17. 17
more on the social media presence, especially if hotels are the
desired location to sell these products.
 Distribution Strategy: To help sell the products, it would be
beneficial to have our founder reach out to any contacts he has
in the upscale hotel market. Once it is placed in a spa, based on
the response of the spa’s clientele, a plan to sell the products at
a 50-50 consignment will ultimately be our distribution
strategy.
 Promotional Strategy: Selling our products in smaller
containers, as a bundle in an Italian leather clutch, would help
our customers experience all we have to offer. It would help
create a long-term loyal clientele and would lead to them
buying the larger individual creams. Having small samples to
hand out at events, like the Expo in Milan, would also be a way
to help expand clientele base.
 Pricing Strategy: Based on our research of other companies as
well as researching the field, we have come to a few
conclusions about the pricing of CR Beauty products. Though
the current price point is within the high-end market, we
believe the price can definitely be higher. By raising the price
slightly higher than similar products such as Shiseido, Clarins,
and Chanel, the consumer may be inclined to give the lotions a

18. 18
chance. The pepper, viper venom and snail extract allows for
CR Beauty to stand out in this category.
However, because brands such as Sisley and La Prairie
are established and are currently at the high-end range of the
high-end market, we do not believe it is in CR Beauty’s best
interest to match the 500-600€ price range.
Pricing the CR Beauty products at 100€ more than the
current high price would put the products near 270€.
This price raises its own bar in the market, while still
keeping it reasonable compared to higher priced products.
Possible Alternatives
“Beauty in a Bag”
“Beauty in a Bag” is a concept that we have been researching. The idea
is to place Calime, Cailin and Naimi into an authentic Italian leather bag and
sell it at a higher price point at different times of the year (similar to a special
edition).
From our research, we found that similar concepts exist within CR
Beauty’s major competitors, but not on the luxurious scale that an Italian
leather bag would bring. Elemis, the product used within the Kami Spas, have
collection bags containing their most popular products and encompassing
them in plastic or cotton bags ranging from cosmetic cases to small handbags

19. 19
selling at a price point between 40-100€. The idea of an Italian leather bag
takes this concept to the next level of the high-end market.
Financials
Based on our research on wholesale Italian leather goods, we have
reached the following price points:
 The wholesale price for Pelletteria San Lorenzo ranges from
12-150€.
 The wholesale price for Carbotti ranges from 40-160€.
 The wholesale price for Leonardo Il Genio ranges from 70-
300€.
Based on the evaluation to buy these leather goods in bulk, a
wholesale price would cost anywhere from 120-700€, depending on the quality
of the leather. These bags can then be resold at a price anywhere from 200-400€.
By placing all three creams at a discounted price of 200€ each, we believe
these bags can be sold from a range of 720-1300€ a bag.
In-flight Magazines
SkyMall
A full page is $129,000 per issue (run in three month cycles) with a 6
percent transaction fee.
Half a page is $23,900 with a 6% fee. A fourth of a page is $41,000 per
issue with a 6% fee. The magazine receives up to 100 requests a week from
companies wanting to advertise in the catalogue. The daily average of
SkyMall passengers on United, Delta, Southwest, American Airlines, Amtrak,

20. 20
US Airways, Airtran, World- North American, Cayman Airways, and Seaborne
Airways is about 1,822,268.
Open Skies
Advertising a regular position for Open Skies is $9,500-$26,500. A
premium position is $16,100-$74,250. A DPS position is $26,500-$39,750.
Special requests range from $17,500-$42,000. A series of discounts can be
applied.
Recommendations
Social Media
It is crucial in this day and age for companies to have a presence on
social media. We think a smart way to begin to promote CR Beauty would be
to offer giveaways and free trials.
All major players are stepping up their digital initiatives, with L'Oréal
and EL at the forefront. Companies like these are exploring and utilizing
social media to enhance their product lines. Digital marketers use these
platforms to drive consumer interest in brands by replacing campaign-
specific sites with social media communications.
Among the more interesting initiatives, Bobbi Brown and M•A•C
launched social media campaigns to revive and relaunch discontinued
cosmetics based on votes received by site users. The new M•A•C By Request
collection was then to be sold exclusively on the M•A•C Web site. NARS and

21. 21
Covergirl are providing samples on social media to prompt direct purchases
there.
In 2011, Shiseido launched a Web-based service, Watashi+, which
includes Web counseling, in which customers can get advice regarding the
most suitable products from web-based specialist beauty consultants by
using an online virtual make-up simulator.
We recommend that CR Beauty consider implementing all or a couple
of the following social media platforms into its marketing strategy. Three of
the largest social media platforms are Facebook, Twitter and Instagram. A
Facebook page is an easy way to stay connected with a company. Facebook
could aid in creating a foundation for the company making it easy to update
customers as well as showcase photos and descriptions of each product with
a link to the CR Beauty webpage. Facebook users have the capability to share
and comment on pages, providing feedback and generating more buzz about
the products. This page would need to be monitored and updated frequently
in order to be used to its fullest potential. Facebook also gives CR Beauty the
opportunity to translate its content into other languages.
With Twitter, companies have the capability to tweet about their
brand, new products, promotions, etc. Twitter also implements the hashtag,
providing a quick link to a certain company or event. We think the creation of
a hashtag would be suitable for the products. Twitter users can learn more
about the company and other customers using Impossible by clicking on each

22. 22
hashtag associated with CR Beauty. The company could also utilize Twitter
for giveaways and discounts on the creams. For example, the first 100 people
to retweet CR Beauty's account could receive a free sample size of one of the
creams or a 20% discount when they buy from the online store.
Instagram is the third and most visual social media platform.
Instagram allows for companies to post pictures about its products, its sales,
and its giveaways. This would be another way CR Beauty can generate
clientele buzz by showing how the creams are packaged, as well as offering
further discounts and giveaways. It is also another platform the company
could use a hashtag. Again, this account would need to be updated frequently.
The pictures can range anywhere from the products themselves to the
locations of places they will be showcased
Hotels
We chose hotels with a five star rating based on multiple websites
that customers have the chance to comment on and rate, and also based on
exclusivity and rating of each spa. Each hotel is a five star hotel, with
excellent comments and ratings on Trip Advisor, and that were also featured
on Forbes 100. As for the Rome hotels, we had the chance to personally visit
each hotel and tour each spa. The Rome hotels allowed customers to
purchase the products that were used in their treatment, however, not all
spas sell the products they use. See Appendix H, I, J and K for the information
about the hotels we chose.

23. 23
Assumptions
Based on our research of other companies as well as researching the
field, we have come to a few conclusions about the pricing of CR Beauty
products. Though the current price point is within the high-end market, we
believe that it can be raised. By pricing the products slightly higher than
similar products such as Shiseido, Clarins and Chanel, their unique qualities
become more evident. There is a current rise in the market for more natural
ingredients, whether it be for skin care or food. The pepper, viper venom and
snail extract allows for CR Beauty to stand out in this category. See Appendix
N for a graph depicting price comparisons.
However, because brands such as Sisley and La Prairie are established
and are currently at the high-end range of the high-end market, we do not
believe it is in CR Beauty’s best interest to match the 500-600€ price range.
Pricing the CR Beauty products at 100€ more than the current high
price would put the products at around 270€ each.
This price point would raise Impossible’s current position in the high-
end market, while still keeping it reasonable compared to higher priced
products.

24. 24
Appendix
Appendix A
Appendix B
Appendix C
Europe
East Asia and Australia
Americas
West Asia and Indian
Ocean
Gulf and Middle East
Africa
29.10%
28.40%
12.70%
10.60%
9.90%
9.30%
Emirates Passenger
Destinations

25. 25
 This
website
for La Mer
uses color
and
texture
but also is
very
simple
and to the
point.
 Next is La
Prairie,
while they
don’t use
much
color they
kept their
website
clean and
crisp.
 Finally,
Elemis’s
website
uses
different
colors and
a different
layout, but
is
conscious
to keep
the focus
on the
cream not
the model.
Appendix D

26. 26
Appendix E

27. 27
Appendix F
Appendix G

28. 28
Appendix H
Appendix I
Appendix J
Appendix K

29. 29
Appendix L
Appendix M
M-1

30. 30
M-2
M-3

31. 31
M-4
Appendix N

32. 32
Appendix O-1
Appendix O-2
Appendix P

33. 33
Appendix Q

34. 34
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