Thursday, March 21, 2019
Marketing Plan for a Cosmetics Company Essay -- Business Marketing Fin
Marketing Plan for a Cosmetics CompanyEXECUTIVE SUMMARY.CosmoCosmetics.1389 Sunshine Ave.Fort Lauderdale , Fl 34587CosmoCosmetics has decided to create a new foundation make up line for African American women exclusively. We believe there is a niche for this fiber of business since no make up brands specialise in this target. CosmoCOsmetics would be the exclusive maker that sells to cosmetic retailers.Not only would emphasise on the variety of color but also the packaging of the product. 1.The colours would be adjusted to this face of skin( a wide variety of darker colours )2.The make up would be offered as a spray, a completely new format in the make up industry. A Compact size that doesn?t plunge any billet in the hand bag, extremely easy to social function and achieves the best immanent and professional results any woman would dream of. later studying the cosmetic market we can identify a serial of needs in this market1.EASE OF USE 2.AVAILABILITY3.PORTABILITY4. compartmen talization OF COLORS5.DURABLE Our Spray Foundation would meet these needs by offering 1)Spray packaging with a diffuser. 2)Big cosmetic retailers crossways South Florida, near business areas and suburbs (Miami Downtown, North Miami Fort Lauderdale, West ornament Beach.3)Compact size 30 ml.(doesn?t occupy much space in the lady?s purse).4)Variety of colours adjusted to their type of skin tone.5)Long Durability Just needs to be use once a day, for long finaling results. The combination of powder + minerals provide make the makeup last longer leaving a moisturized and natural look.Market.Household and personal care product companies are making efforts to experience gross sales in a variety of ways, such as ingress new markets, creating new product categories, adding new distribution channels, and acquiring (and divesting) businesses to be able to compete in this highly competitive industry.Over the last decade, sales at general merchandise stores, pharmacies and drugstores, hav e grown at average annual rates of 6.0% and 7.5%, respectively, according to US Census way retail trade data.The US and Western European markets are compass saturation- therefore cosmetic companies see the future markets for their products in Central and eastern Europe, Chi... ...lenge for us.Break-even (units)= ($116.400 + $32.000)/ $23= 6.453 units /quarterBreak-even sales ($)= 6.453*28.5= $183.911Total Revenue from sales $183.911 exist of goods sold $43.500-------------Gross attain $140.411Calculating the ratio of variable expenses to meshwork salesThe percentage is $43.500/ $183.911 = 23.65%Cosmo-cosmetics Co. uses $0.246 out of every sale dollar to peak variable expenses, leaving $0.753 as a contribution margin to savvy fixed costs and make a profit. (Note 75.3% is the contribution margin as a percentage of sales)Break-even sales = $116.400/ 0.753 = $154.582 Thus, Cosmo-cosmetics will break even with sales of $154.582Break-even ChartWe would expect a sales level of $1 83.911 (Point A= Income)Income & Expenses gross sales Volume The break-even point is located in the intersection between the chalk up expense line and the revenue line. As it is shows, Cosmo-cosmetics operates at a sales Volume to the right of the break-even point (point A), this means that it would earn a profit because the revenue line lies above the expense line over this cast ?Profit area?
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