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NEW PRODUCT LAUNCH IN THE
UAE
PRODUCT : ‘ELLE® EYELINER’
PRESENTED BY AYOUB BENSAKHRIA
SESSION JUNE 2020
OVERVIEW
• ‘Elle® Eye Liner’ is an eyeliner product certified
‘Halal’ under a new Start-Up – Elle Cosmetics Ltd
located in Paris, France.
• Eye liner is a cosmetic used to define the eyes
creating a variety of aesthetic effects.
• It was first used in Ancient India and Egypt as a dark
black line around the eyes. As early as 10,000 BC,
Egyptians wore various cosmetics including eye
liner not only for aesthetics but to protect their skins
from the desert sun.
COSMETICS MARKET SEGMENTATION
In the UAE, there is substantial demand for different cosmetics.
The organic and halal beauty segments grew significantly in the
past couple of years. Cosmetics market is segmented:
By Geography: DUBAI, ABU DHABI, SHARJAH, REST OF UAE
By Demography : Predominantly female (85%), well educated
(46% attended college), and crosses income levels (from 35K
USD to over 75K USD).
By Type: Skin care, hair care, bath & shower products, makeup
& color cosmetics, fragrances & deodorants
By distribution channel: offline, supermarkets/hypermarket,
exclusive retail stores, beauty parlors/salon, multi branded retail
stores, online.
TARGETING & POSITIONING
Target Customers
Women aged between 20 – 65 years living in urban or semi
urban areas, extrovert, adapters. They belong to upper and
middle classes and having lifestyle of health conscious,
innovator and value oriented.
Positioning
Elle ® Eyeliner is a sustainable organic product, 100%
natural, certified ‘Halal’, easy to apply, safe with zero side-
effects
SWOT ANALYSIS OF ELLE®
Strengths Weaknesses
- Highly experienced staff
- 100% natural products, eco-friendly and
certified ‘Halal’
- Low production costs and competitive
prices
- Made in France Brand
- Low reputation versus the already
established companies (like L’Oréal)
- High initial investment cost
Opportunities Threats
- Highly demanding market
- Easily scalable and expandable to other
segments
- Customers have low bargaining power
- Strong and well-established competitors
who have world wide presence
- Low availability of raw materials and high
dependence on the main suppliers
PORTER’S 5 FORCES
• Threat of new entrants : LOW : because of the huge costs
of entry. Developing unique cosmetic products requires a lot
of resources both in terms of research and development and
the actual manufacturing process.
• Bargaining Power of Customers and Suppliers : HIGH:
because of the high number of competitors and market
players
• Threat of Substitutes and Competitive Rivalry: HIGH so
it’s important for the company to focus on innovation to
tackle these challenges
 Prelaunch Strategy :
COST LEADERSHIP, RESEARCH &
DEVELOPMENT, AGGRESSIVE MARKETING
CAMPAIGNS
BCG MATRIX OF ELLE® EYELINER
The product is a question mark and has the
potential to become a market leader, a star, with
the right Financial Maneuvers and Marketing
Approach. However, it can also easily become a
dog, as it is the only product and eat up all the
amount of company cash, and it’s for this reason
we have implemented a contingency plan in case
of failure and a diversification strategy in case of
success in post launch to reach the other market
segments.
7P’S MARKETING MIX (1)
Product : a set of 12 multicolor eyeliners certified ‘Halal’, smooth,
waterproof, with a unique and attractive design and packaging
Price: Elle ® Eyeliner will be introduced in the market at a
competitive price of $19.99, a margin of 10% would be kept for the
wholesalers, and 20% for the retailers.
Place: the product will be launched in Dubai Outlet Mall, it will be
also available on other popular markets such as Al Karama, Naif
Souk, Mina Bazar and Deira Old Souk.
Promotion: Internet: Social Media (Facebook, Instagram,
YouTube), Beauty Websites and Blogs in the UAE
7P’S MARKETING MIX (2)
People: experienced staff able to deliver accurate and
knowledgeable answers on the brand’s products, customers will
benefit from gaining clear examples on how to do their makeup.
Physical Evidence : every employee has their makeup done
perfectly to inspire customers and motivate them to take an action
and then become loyal to the brand.
Process: Elle® Retail stores and online stores accessible via the
company’s website or the mobile App.
PACKAGING
• The packaging would be attractive black,
matt and the pencils are made of soft wood.
• The packaging contains health tips,
composition, certification, and instructions
for safe use
• samples are also provided for trial purpose
but this would be done only in selected
stores
DISTRIBUTION CHANNELS
• Channel members are provided
discounts keeping low margins for the
brand initially to allow them making
profits and the product remain
competitive in terms of price
• Traditional distribution channels are
used including :
BUDGET CALCULATION
Budget Calculation Per Unit
Market Price (per unit) $19,99
Manufacturers cost 60% $11,99
Retailers Margin 20% $3,99
Wholesaler Margin 10% $1,99
Administration and
marketing expenses
10% $1,99
Profit 10% $1,99
Total Investment : 140,000 USD
Total Production in One Year : 10,000 Units
CONCLUSION
POST launch
• We’ll begin with one segment (Eyeliner makeup product), later we’ll target other segments
by diversifying the product line.
• Contingency Plan: in case the product fails in the market, a new product shall be
developed to target youths taking into account the reasons of its failure, the new product
will be repositioned, the same fixed facilities already established will be used.
THANKS

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New cosmetics Product launch in the Middle East (UAE)

  • 1. NEW PRODUCT LAUNCH IN THE UAE PRODUCT : ‘ELLE® EYELINER’ PRESENTED BY AYOUB BENSAKHRIA SESSION JUNE 2020
  • 2. OVERVIEW • ‘Elle® Eye Liner’ is an eyeliner product certified ‘Halal’ under a new Start-Up – Elle Cosmetics Ltd located in Paris, France. • Eye liner is a cosmetic used to define the eyes creating a variety of aesthetic effects. • It was first used in Ancient India and Egypt as a dark black line around the eyes. As early as 10,000 BC, Egyptians wore various cosmetics including eye liner not only for aesthetics but to protect their skins from the desert sun.
  • 3. COSMETICS MARKET SEGMENTATION In the UAE, there is substantial demand for different cosmetics. The organic and halal beauty segments grew significantly in the past couple of years. Cosmetics market is segmented: By Geography: DUBAI, ABU DHABI, SHARJAH, REST OF UAE By Demography : Predominantly female (85%), well educated (46% attended college), and crosses income levels (from 35K USD to over 75K USD). By Type: Skin care, hair care, bath & shower products, makeup & color cosmetics, fragrances & deodorants By distribution channel: offline, supermarkets/hypermarket, exclusive retail stores, beauty parlors/salon, multi branded retail stores, online.
  • 4. TARGETING & POSITIONING Target Customers Women aged between 20 – 65 years living in urban or semi urban areas, extrovert, adapters. They belong to upper and middle classes and having lifestyle of health conscious, innovator and value oriented. Positioning Elle ® Eyeliner is a sustainable organic product, 100% natural, certified ‘Halal’, easy to apply, safe with zero side- effects
  • 5. SWOT ANALYSIS OF ELLE® Strengths Weaknesses - Highly experienced staff - 100% natural products, eco-friendly and certified ‘Halal’ - Low production costs and competitive prices - Made in France Brand - Low reputation versus the already established companies (like L’Oréal) - High initial investment cost Opportunities Threats - Highly demanding market - Easily scalable and expandable to other segments - Customers have low bargaining power - Strong and well-established competitors who have world wide presence - Low availability of raw materials and high dependence on the main suppliers
  • 6. PORTER’S 5 FORCES • Threat of new entrants : LOW : because of the huge costs of entry. Developing unique cosmetic products requires a lot of resources both in terms of research and development and the actual manufacturing process. • Bargaining Power of Customers and Suppliers : HIGH: because of the high number of competitors and market players • Threat of Substitutes and Competitive Rivalry: HIGH so it’s important for the company to focus on innovation to tackle these challenges  Prelaunch Strategy : COST LEADERSHIP, RESEARCH & DEVELOPMENT, AGGRESSIVE MARKETING CAMPAIGNS
  • 7. BCG MATRIX OF ELLE® EYELINER The product is a question mark and has the potential to become a market leader, a star, with the right Financial Maneuvers and Marketing Approach. However, it can also easily become a dog, as it is the only product and eat up all the amount of company cash, and it’s for this reason we have implemented a contingency plan in case of failure and a diversification strategy in case of success in post launch to reach the other market segments.
  • 8. 7P’S MARKETING MIX (1) Product : a set of 12 multicolor eyeliners certified ‘Halal’, smooth, waterproof, with a unique and attractive design and packaging Price: Elle ® Eyeliner will be introduced in the market at a competitive price of $19.99, a margin of 10% would be kept for the wholesalers, and 20% for the retailers. Place: the product will be launched in Dubai Outlet Mall, it will be also available on other popular markets such as Al Karama, Naif Souk, Mina Bazar and Deira Old Souk. Promotion: Internet: Social Media (Facebook, Instagram, YouTube), Beauty Websites and Blogs in the UAE
  • 9. 7P’S MARKETING MIX (2) People: experienced staff able to deliver accurate and knowledgeable answers on the brand’s products, customers will benefit from gaining clear examples on how to do their makeup. Physical Evidence : every employee has their makeup done perfectly to inspire customers and motivate them to take an action and then become loyal to the brand. Process: Elle® Retail stores and online stores accessible via the company’s website or the mobile App.
  • 10. PACKAGING • The packaging would be attractive black, matt and the pencils are made of soft wood. • The packaging contains health tips, composition, certification, and instructions for safe use • samples are also provided for trial purpose but this would be done only in selected stores
  • 11. DISTRIBUTION CHANNELS • Channel members are provided discounts keeping low margins for the brand initially to allow them making profits and the product remain competitive in terms of price • Traditional distribution channels are used including :
  • 12. BUDGET CALCULATION Budget Calculation Per Unit Market Price (per unit) $19,99 Manufacturers cost 60% $11,99 Retailers Margin 20% $3,99 Wholesaler Margin 10% $1,99 Administration and marketing expenses 10% $1,99 Profit 10% $1,99 Total Investment : 140,000 USD Total Production in One Year : 10,000 Units
  • 13. CONCLUSION POST launch • We’ll begin with one segment (Eyeliner makeup product), later we’ll target other segments by diversifying the product line. • Contingency Plan: in case the product fails in the market, a new product shall be developed to target youths taking into account the reasons of its failure, the new product will be repositioned, the same fixed facilities already established will be used.