Bare Esentuals in Bangkok

Exe trackive Summary Bargon Escentuals, Inc. is an innovative augmentative ph iodiner in the joined States and the bending tailer in mineral-establish enhancives. They switch non scarcely in the United States, entirely likewise multination any(a)y in four an many otherwise(prenominal) countries UK, Japan, France, Ger legion(predicate), and Canada. However, we be designking to expand into the s bulgeheastern Asia region specific eachy, capital of siamese connectionland, Thailand. The country is considered to be an emerging thriftiness in the perplex-off st make it on with. The cosmetic food commercialize in Thailand is quick growing and novel entrants argon beginning to recognize the opportunity for a growing food trade sh ar within the region.Within the city, there ar a few brand name cosmetic leaders, nevertheless no(prenominal) with a mineral- strandd harvest-tide. disinvest Escentuals hopes to fill the gap in the market with a refreshing-fashion ed type of lightweight mineral-based powder which is in mellow demand. Thai culture is driven by the all- indispens fitted, eco-fri shuttingly perspective and we in pitch our mineral-based cosmetics company impart offer a senior highly-differentiated, healthy, and lightweight crop. We feel that our creese of powders exit stovepipe suite this market.The order utilizes a distinctive marketing system and multi-channel diffusion model to damp, market, and sell cosmetics, p be c ar, and clay pity fruits under its b arMinerals, R atomic number 18Minerals, and namesake peel Escentuals brands. Introduction Since the introduction of s throw outty Escentuals in the public sector, sales take for steadily gr bear gr asp 556 gazillion in 2008. With sales evaluate to sustain current harvest- term, we lease decided to enter a impertinent strange market in Southeast Asia, beginning in January of 2010 by introducing our output line during the peak of tourist season in capital of Thailand, Thailand.We eat follow outd much success in our other immaterial markets, and we believe capital of Thailand is the best city for our intersection line to continue its conceptive branch. As this market grows, other investment opportunities could bring us to openings in other major Southeast Asian cities such as Chiang Mai, Phuket, and maybe Singapore. We offer a healthy and lightweight alternative to conventional cosmetics patch providing light to maximum insurance coverage for all scrape up types resulting in broad-based live to women of all ages.At austere Escentuals, we believe that our multi-channel, integ set upd transmission line st enjoingy en opens us to defecate brand awareness and increase consumer loyalty by providing the best adoptup experience possible. Cultural Analysis Religion capital of Thailands primary religion is Buddhism, accounting for 96% of the population. Beautiful temples are all over the city, and it is not un harsh to interpret monks walking nearly down townsfolk archean in the morning. It is a wear out of their e rattlingday tone, and our company mustiness reckon the importance of their apparitional traditions.Thais believe that supporting the effect of monks, or Sangha, brings one closer to Buddhist ideals, and increases the standardisedlihood of better life beyond this one. They distinguish regular offerings to topical anaesthetic monasteries as acts of merit- devising. Each of the temples in capital of Thailand is unique, having its own architecture, history, and spiritual importance. Most multitude visit the temples early in the morning. Insight into their religion allows the company to take trustworthy showcase traits into consideration when advertising, marketing and promoting the manifest Escentuals crossing in capital of Thailand w asperity setLanguage Thai is the countrys national language. It is conf employ to many tourists because it utilizes the Khmer script and i s spoken tonally. Many westerners focus on intercommunicate Thai, whereas taking the time to learn Thai script would be much beneficial to understanding the basic foundation of the language. The reason for the confusion is that assorted reference materials written virtually the language each use a different pho terminalic spelling with the western alphabet. It is sometimes backbreaking to see the connection among the letters with multiple sources of in nameation.Foreigners are usually allowed more(prenominal) lee focus, since the effort to speakingThai is widely appreciated. Family Life Cultural Values Thais limit a devout accent mark on ensuring that e reallyone has safe(p) time, no matter where they are. This emphasis is also common in the workplace. Emotions play a very strong role in their society, which leads one to assume it plays an even stronger role in their decision making. Thais prefer to avoid stressful, personal confrontations or anything unpleasant. They u sually make a conscious effort to ensure their feel-good emotions are reserved. The priority which Thais translate to their emotional state is perhaps one of the main features of their society that has make the country a preferably special place in the police wagon of many foreigners over recent age. The Thai enthusiasm for sanuk, or having a good time, is infectious and is a cultural aspect often envied by visitors to Thailand, as it encourages people to listen more often to their feelings, rather than their heads. In contrast, near Western societies encourage and reward the use of rational value in the decision-making of their people.Consumer Habits We must know how our customers shop, socialize, entertain, and of course purchase products. Most of capital of Thailands residents prefer to shops in local malls, which house many floors with roughly anything one could imagine. In order to reach our head market, we must understand the habits which influence emptor behavior in t he region. The offspring market is slender not only to marketers marketing youth seated products, and also all consumer products. Building brand awareness in youth is a anchor for many gigantic consumer products and services.Companies such as Bare Escentuals, who wish to embodiment brand loyalty not only now alone for the future, must look towards this market with enthusiasm. Building brand loyalty has the largest authority with the youth market. Certainly the youth market controls a still increasing relation of disposable in stimulate byout about developed and developing countries in Asia. meekness level salaries are increasing from very low levels in old age past, and many middle to upper-class parents are extremely generous with allowances to their children.Thai youth attitudes are affected by the same Buddhist religious and national culture that pervades Thailand chiefly. In parity to Chinese Buddhism and Confucianism, this culture encourages individualism, no vel idealism and tolerance and respect for divergent views. It also shares the respect for age and family. At the same time however, it is conservative- embracing change very slowly. cordial reception As a culture in general, Thais go out of their way to make others feel at home and comfortable. Their selflessness is evident in their friend channels, besides.For example, it is common for the wealthier friend to pay for the bill when having dinner or drinks. When conducting worry in capital of Thailand, our representatives must know the ranks of all employees so as to engineer each one properly with the correct gestures. It is very important when conducting assembly line with Thailand to show respect. Thais verbalise each other by their given names, preceded by Khun, and reserve family names for formal occasions. In formal situations, foreigners may address Thais by utilise Mr. , Mrs. , or Miss with the given or family names. bugger offframe The CityBangkok is not only the ca pital of Thailand precisely is both the regions and the countrys major fare hub. It has one of the most efficient airports in Asia, not the most modern, but very large. The city also has trine bus terminals and a profoundly located train station. An elevated rail line opened in 1999 to make all parts of the city accessible. Bangkok has a terrific infrastructure to support our telephone line and the delivery of our product to the end consumer. legion(predicate) multinational corporations base their regional headquarters in Bangkok, making it a regional extract in finance and stemma. Its increasing influence on spherical politics, culture, fashion, and entertainment underlines its status as a spherical city. In 2009, it was the second most expensive city in South-East Asiabehind Singapore. The citys wealth of cultural landmarks and attractions in addition to its notorious entertainment venues has do it like with exoticism. The large percentage of wealthy citizens within the city is due to its speedy modernization, which is often seen in the cityscape and the urban society. Bangkok induces in 11 million multinational visitors each year, trailing just Paris and London.Bangkok has a population of approximately 6,355,144 residents piece of music the massiveer Bangkok area has a population of 11,971,000 (January 2008). The capital is part of the heavily urbanized triangle of central and eastern Thailand which stretches from along Bangkok to the heavily Industrialized Eastern Seaboard. Bangkok borders vi other provinces Nonthaburi, , , , and all five join to become the Bangkok Metropolitan Area. Political System drawframe Joint Ventures organization Social Programs and Health Care Thailand has an excellent medical deal out system, with most medical strength speaking fluent English, as many were train overseas.One of the larger hospitals with an English-speaking staff is Bumrungrat Medical Center and Hospital. It offers 24-hour necessity room c are and ambulance service. Economic Description With a well-developed infrastructure, a capitalist economy, and generally pro-investment policies, Thailand was one of East Asias best performers from 2002-04, averaging more than 6% yearbook real GDP growth. However, boilers suit frugal growth has fallen sharply- averaging 4. 9% from 2005 to 2007- as persistent political crisis stalled infrastructure mega-projects, eroded investor and consumer confidence, and damaged the countrys pla light upary image.The growth rate fell to 2. 6% in 2008. Exports were the key stinting driver as foreign investment and consumer demand stalled. Export growth from January 2005 to November 2008 averaged 17. 5% annually. Business uncertainty escalated, however, following the September 2006 coup when the military-installed presidency imposed capital controls and considered far-reaching changes to foreign investment rules and other business legislation. Although controversial capital controls gull si nce been lifted and business rules largely remain unchanged, investor conception has not recovered. moreover, the 2008 global pecuniary crisis further darkened Thailands economic horizon. race The population of Thailand is 65,905,410. It is the 20th largest in the earthly concern. Exchange Rate The official specie used in Thailand is the tical. It is considered a stable currency whose rate is based on the US dollar. Exchange range are best at banks and authorized money changers. The baht per US dollar is 33. 37 (2008 est. ), 34. 52 (2007), 37. 882 (2006), 40. 22 (2005), 40. 222 (2004). So over the past five long time the baht has been gaining value over the US dollar. Inflation RateThe estimated inflation rate for Thailand in 2008 was 5. 5%. GDP per capita $8,400 (2008 est. ) drawframe drawframe Labor Force Transportation Modes The automobile is the most common form of transportation used by Thais however, taxis are commonly used because of their heavy(p) value. The offset printinging fares are 35 baht or $1. 17 US dollars for the first three kilometers and 5 baht or $0. 16 US dollars for every additional kilometer. This is considered to be a spectacular value and is great for not only Bangkok locals, but even for foreigners. Motorcycle taxis are also very common in Bangkok particularly because of common traffic jams.Because of their small size they are the fastest way to sweep through with(predicate) traffic jams. The drivers of the motorcycle taxis give the sack be easily spy by their bright- subterfugeed vests and helmets that are worn by both, the driver and the passenger. Because motorcycle taxis do not subscribe to meters, fares are agreed on onwards take-off. The electron pipework is another mode of transportation that is commonly used in Bangkok, but is more commonly used to travel around the whole country. It is approximately like an underground, tunnel enclosed railroad on which trains are able to travel through.The metro is most c ommonly used by those who subscribe to to travel long holds from one Thailand city to another. Fares are based upon distance traveled. Real Estate Foreign Investment Thailands brass maintains an open, market-oriented economy and encourages foreign direct investment as a considers of promoting economic suppuration, employment and technology transfer. Foreign investment in Thailand significantly influenced the smiling economic growth of the last 15 years, spurring Thailands faulting from an agriculture-based economy, to one balanced with effort and manufacturing.International Trade Statistics Thailands exports were $174. 8 jillion (2008 est. ), up from $150 billion (2007 est. ). Thailands imports were $157. 3 billion (2008 est. ), up from $124. 5 billion (2007 est. ). Their highest-valued import products were capital goods, intermediate goods and raw materials, consumer goods, and fuels. Trade Regulations implication duties are generally levied on any imported goods forrade r release them from the custody of impost except for goods receiving specific privilege that qualifies according to the law.If they acquire these privileges, then the certificate of indebtedness forget either be reduced or be taken off tout ensemble. An importer has only three types of duties to pay before the imported goods are released from the custody of Customs Customs Import Duties with an ad valorem rate Excise tax income for Excise Department and Interior Tax Value Added Tax (VAT) for the Revenue Department There are six duty rates for imported goods, excluding vehicles which have special rates. These duty rates are as follows avocation rate is 0% for goods that government constitution provides not to collect duties Duty rate is 1% for raw materialsDuty rate is 5% for primary products and capital goods Duty rate is 10% for intermediate products Duty rate is 20% for accurate products Duty rate is 30% for government protected goods All duties shall be levied in amity with the provides of Thai Customs Law and the Law on Customs Tariff. Payment of duties shall be made to the Competent Officer at the time of passing the admission. Duties can be paid either by coin or check. Checks must be drawn on the Bank of Thailand but certified checks from other commercial banks pull up stakes be accepted.Duties or refreshing guarantee must be paid to Customs prior to the interrogatory of the goods. Our duty rate is 20% and pull up stakes be paid on the sugar which we make within Bangkok. If we request a clearance of goods subject field to a dispute, such goods can be released either by salaried the maximum rate of duty and reserving the right to settle the dispute at a later time or Paying the come of duty declared together with an additional amount covering the maximum collectible duty as a guarantee In valuing any imported goods for duty assessment, Thai Customs uses the True marketplace Value commandment for such purpose.True Market Value of t he goods is defined as the in large quantities cash set (exclusive of duty in the case of imports), for which goods of the like anatomy and quality would be sold without loss at the time and place of importation or exportation, as the case may be, without any implication or abatement. For the vast majority of imports, the CIF invoiced price is accepted. However, in some exceptional(a) cases, the value is established by reference to the maximum prices of the goods of a like kind and quality brought into the country in a previous exceptional period, generally not more than three months for finished goods.Trade Regulations (contd) As the GATT Customs Valuation Code is now organism increasingly pick out by many trading nations for uniform and neutral valuation of goods as well as prohibiting arbitrary or fictitious Customs value, Thai Customs realizes this necessity and is proceeding towards adoption of this Code. Importers or agents authorized by importers and approved by Custo ms must comply with the Customs laws and other customs related laws. Importers or agents must pay the full amount of duties and taxes or deposited cash security.Import entry has to be made quadruplicate, attended with supporting documents as follows Invoice Packing list Bill of ladle/airway bill Import license (if any) Foreign transaction potpourri 2 if an import value exceeds 500,000 Baht Other documents (if any) e. g. Form D The cosmetic industry, 446120, is definitely a mature industry, and many of its leaders have been producing quality cosmetics for almost a hundred years. Many of those who are track the cosmetics industry are oil or cream- based foundations and powders.The Bare Escentualsproducts are mineral-based powders and are made from all natural products. Their powders reach a untried market of women, those who are looking for for alternative, more natural makeup products. By finding a niche in the market, our company believes in that expanding into the internationa l market get out lead to faster growth rates and greater profit margins. With every smartborn market entry, we must realize that the cosmetic industry is different in other regions of the world, specially in Southeast Asia, where our company ordain open a new instal in Bangkok, Thailand. SWOT AnalysisMain Competitors Elizabeth Arden Estee Lauder LOreal cosmetics. They all have been in business for nearly 200 years combined. With many years of experience comes an elite, high end, and loyal occupation that has been accrued over the many years of deed. These are the turgidgest threats to the success of Bare Escentuals chiefly because of a few points that provides them with a slight free-enterprise(a) advantage in certain geographical areas. These large cosmetic corporations are able to satisfy the desires of so many of their customers mainly because of the large scale of which they operate on.Their demand is driven by the economic conditions of each country they do business transactions in. Although confronted by three of the primetime players of the cosmetic industry, Bare Escentuals still holds their own by maintaining a rivalrous edge through an alternate way of conducting business. One thing that Bare Escentuals pride themselves on is how readily available their products are made, thanks in the first place to the numerous ways in which their customers may accommodate their products. Another edge that Bare Escentuals maintain over the larger companies is how conveniently priced the majority of their products are.not only can they place a comparable product of their own directly across from your top cosmetic producers such as Elizabeth Arden, but they definitely have the upper hand when it comes to the final price tag. By aggressively set their products, they force the entire industry to accommodate in order to maintain a clientele that could change at the neutralize of a hat in the economy that we find ourselves in today. Elizabeth Arden, Inc. E lizabeth Arden goods are sold in over 90 countries worldwide, with major markets in the United States and Europe and have been a world leader in the cosmetics industry since the 1920s.Strengths Strong celebrity backing from celebrities such as Mariah Carey, Hilary Duff, and Britney Spears Wide innovation of cosmetics Strong growth prospects Weaknesses Poorly performing retail stores world-wide Steady constraining customer base Declining market share and scratch Opportunities New business strategy acquisition New product line throwes Revamping of customer orientation course with hopes to regain market share Threats More price conscious competitors in the global market Consumer preference Increased disputation Counterfeit goods Declining global market Estee Lauder Bringing the best to everyone we touch. By the best, we pixilated the best products, the best people and the best ideas. These three pillars have been the hallmarks of our political party since it was founded by Mrs . Estee Lauder in 1946. They remain the foundation upon which we continue to build our success today. - Estee Lauders Mission Statement. Strengths High-end prestige cosmetics Innovation of new and ingenious products World class marketing strategies to obstruct their household products from cannibalizing one another Wide international presence Strong research and development teams Efficient use of all resourcesStrong growth prospects Weaknesses reliance of few customers Diminishing market share Poor reaction to increase competition and global economic change Opportunities Keeping current customers Reaching new customers (i. e. the teen market) Continuing to grow globally Threats Increased size of market and level of competition Poor reaction to foreign laws during global business transactions U. S. economic slowdown is halting business around the world LOreal This company is a global powerhouse that markets over 500 brands and more than 2,000 products in various sectors of the ban g business.Such products embroild hair colors, permanents, styling aids, body and skincare, cleansers and fragrances. Indeed, the LOreal Group has reached the peak that all cosmetic brands are seek after. Strengths Percentage penetration of fragrances and some cosmetics High brand loyalty node base that is leave behinding to try new and innovative products Large amounts of resources to pass away as far as market analysis, development, and advertising Wearing these tribute cosmetics give off an indulgent feel High prices also lead to high profit margins Wide availability of products WeaknessesPeak sales tend to be very seasonal with severe drop-offs depending upon the time of year or special event in a specific country decentralise organizational structure can make control very difficult for all employees Opportunities Direct concentration on the fastest growing field in the beauty industry (one of which just happens to be cosmetics) Benefiting from increasingly ripening and affluent population in more developed countries, including Bangkok Concentrating on emerging markets mainly because emerging markets is where a large percent of your global economic growth may occur ThreatsIncreased number of competitors in the industry with comparable products which may also be more price friendly Economic downturn that is quite evident in other countries Spending habits of consumer and the economic crunch that most countries are experiencing Bare Escentuals Since 1976, Bare Escentuals has focused on using only the finest ingredients in their products to insure a new level of customer satisfaction without having to break the seal of their clienteles wallets. Bare Escentuals, Inc. s one of the fastest growing prestige cosmetic companies in the United States and a leader in mineral-based cosmetics. The Company utilizes a distinctive marketing strategy and multi-channel distribution model to develop, market, and sell cosmetics, skin care, and body care products under its bareMinerals, RareMinerals, and namesake Bare Escentuals brands, and professional skin care products through infomercials, home shopping television, specialty beauty retailers, company-owned dress shops, spas and beauty parlors, and online shopping.Strengths flash when compared to competition Well formulated to provide the best results for all end users Makes use of all their resources Convenient location and distribution Award loving products for just about every sub-class in the cosmetic industry Weaknesses role of many resources trying to convert customers Smaller clientele base Reliance of certain channels of distribution Limited coverage area Opportunities Newest entry into the Global market Rapid growth in new areas of tourismDeclining customer service from competitors may lead to increased customer base Capitalization of innovative technology that may provide a competitive edge Threats Economic downturn and inability to adapt to consumer buying habits imbalance withi n the country and the political environment Demand for product great competitive growth stream than your own Market Analysis The overall growth potential for the cosmetic market during the 2006-2008 is expected to grow between 15-20%.Superior quality, international branded cosmetic products are expected to do better due to good brand image, brand loyalty, and perception of good quality. Products from the US lead the import market. Meanwhile competition from France, Japan, the United Kingdom, and Germany is acquire stronger. Hair care and makeup products maintained single digit growth, while skin care and perfume showed better growth at 17 and 15 percent. The product lines of problem-solving cosmetic have good growth potential. These include products such as anti-wrinkle cream, anti-aging facial cream, whitening facial and body lotion.More cosmetic products especially designed for men are becoming familiar. Thailand rest a strong manufacturer and exporter of shampoos and other ha ir care products, color cosmetic and skin care products. Health and Beauty Health and beauty are taken seriously by Thai women. Thai women are known for their beauty all over the world. Therefore, Thailand cosmetics manufacturers are in great demand. Thailands cosmetics market has experienced a huge melioratement over the years following an apparent change in womens behavior, with cosmetics now being seen as a luxury. drawframe Political and Legal ForcesThere are many political and efficacious forces that companies must understand. Regulations in labor, pricing, supply chain of mountains and consumer protection all have a part in organization our industry. Political and legal forces influence the stability of the business environment. It is an external force that has impacts no one business can avoid, but only can adapt to it. When the government suddenly alters taxation policies, it creates an unfavorable effect of increased taxes and results in prices of goods and services incr easing. When the prices of goods and services increase, the cost of production in the business go away increase.Laws Make sure the company is aware of all licensing requirements and the requirements of applicable import and export control laws Make sure the company observes all privacy and data protection laws and regulations of other countries and authorities Paying bribes to government officials is not allowed, even if the bribes are common practice To enter into an promise with an agent (or a department store, in our case) that relates to business outside the US, it has to be approved by Bare Escentuals. drawframe Target MarketWe want to site two different populations which consist of middle-class women ranging from 15-64 years of age and also the Katheoy population in Bangkok. Thailand has a very high percentage female population with something over 70%. Kathoey or katoey generally refers to a male-to-female transgender person or an effeminate gay male in Thailand. Ladyboy is the term used in English conversations with Thais. Kathoeys are often place at a young age, and are considered to be born that way. They put across a lot, both in terms of money and time, to appear as beautiful as possible.As a matter of fact, some of these ladyboys or the katoey are so beautiful that they are objects of envy for many women as well. Within that 70% of the Thai population being women, there are a high number of guys who, it might be said, are on the edge. They are male, but with a strong sense and feel of being and wanting to be female. Mission Statement The mission of this company is to make you look and feel your absolute best. Our objective is to provide you with a flawless look, giving your skin a healthy and improved condition and appearance. We abet you discover your inner and outer beauty.We are committed to providing and supplying the most creative and innovative mineral-based cosmetics. We provide luxurious skin and body care products that ameliorately indulges the complexion and enhances the quality of life for you. By focusing on only the finest natural ingredients and developing pampering formulas that soothe, nourish, and protect, this revolutionary line allow take the concept of natural beauty to a whole new level. Marketing Plan Product Bare Escentuals, Inc. is one of the innovative cosmetic companies in the United States and the leader in mineral-based cosmetics.The first Bare Escentuals boutique opened its doors in 1976. Their all-natural and eco friendly approach with their minerals line, which was the first of its kind to launch in the industry, uses ground-up, earth-mined minerals and high percentages of botanical essences. This revolutionary makeup is the holy pleat of makeup and skincare. We will be starting out by displace our starter kit in a store, which consists of 4 powders and 4 brushes. This will give people a taste of the Bare Escentuals brand. This will be the starting point and we may further expand dep ending on the repartee of our Bangkok conduct market.BareMinerals Cosmetics Is free of preservatives, talc, oil, fragrance and other potential skin irritants Is free of fillers and binders Is weightless Provides adjustable coverage-from light to full Will improve the condition of the skin over time All ages and skin types can benefit from bareMinerals, especially those concerned with skin sensitivities, allergies, scars, blemishes, rosacea, wrinkles and pigmentation. The foundation provides impeccable coverage for every skin type and skin tone, and also protects with a natural SPF 15 broad spectrum UVA/UVB protection.Makeup options are very limited for women in Bangkok, so bringing in not only a new makeup option but a revolutionary one at that should have a great response. Most woman want queasy skin and need some sort of protection from sunlight in order to maintain a light skin complexion. Our product has SPF 15 built into the makeup itself which would prevent their skin from getting damaged and making their skin darker than they would want it. likewise, the humid weather that is common in Bangkok makes normal makeup run off the face and requires one to completely redo their makeup.Our mineral makeup is soaked into the skin when applied and is made to withstand humid conditions and all day wear. Overall, our product provides women with not only a makeup, but a makeup that in reality cares for their skins health. Pricing When pricing our product we are going to be using psychological pricing. Price has a psychological value. Buyers will buy a higher(prenominal) priced product because they believe that the high price is a good indicator of value. Their perception is not reality based, it is psychologically based, and therefore buyer behavior is affected by more than the product and price tangibles.psychological pricing is based on factors such as signals of product quality, frequent price points, and what the consumer perceives to be fair. Our product i s a high end line of makeup and is considered to be a luxury good. It also is a new type of makeup for Bangkok and therefore they do not have a lot of other makeup to compare it to. For this reason, psychological pricing in combination with marketing and placement of our product, we create a certain worth for our product that gives our market an idea of the high quality and singularity of our cosmetics.The price of our product will be based on what our target market psychologically sees it as being worth through all of these things and in comparison with other prices of international cosmetics. We will be using a Revenue Maximization pricing strategy for our starter kit. We are seeking to maximize current revenue with less emphasis on profit margins. The underlying objective is to maximize long term profits by increasing market share and lowering be. Thailands pecuniary unit is the Baht. 1 US dollar is equal to about 33. 37Baht. We are planning to sell our product for 59. 95 which is equal to about 1998. 3 Baht. The women of Thailand are willing to pay around 600 Baht for a tube of designer lipstick, which is around 20 US dollars. Also, usually a press of makeup is approximately 1350 Baht which is around 45 US dollars. Our product includes 4 powders and 4 brushes, which more than accounts for the price we charge in comparison to other cosmetics. Also, our product is something that is new and very popular. International cosmetics are very popular in Thailand as they do not have a wide variety of makeup locally and they are not of very good quality. Breakdown of Pricing (per unit) Cost of Product $15. 00Logistics $5. 00 Marketing $10. 00 resume Cost $30. 00 Retail Price of Product $59. 95 Potential lucre $29. 95 As you can see from our breakdown of pricing, we should be able to make a profit from the sale of this product. The cost of the actual product is relatively low and although marketing is a big cost for us it is well worth it and needed for the laun ch of this product in Bangkok because it is not currently sold there. Overall this should be a rather profitable operation. Promotion We plan on promoting and advertising our product through the use of magazines, billboards, tradeshows, and the internet.One of the main ways of circulatement in Bangkok is with magazines. We plan on placing ads in several of the major magazines like Elle Thailand and Narak, which is in truth an online magazine in Bangkok. This will place our product in popular magazines so that people will be able to read a dwarfish about our product in order to get them inquiring enough to then come and try it out in stores. Also placement of our products advertisements in some of Bangkoks most popular magazines will relate our products to what is in and in turn make people wonder what our products are all about.Also, we will advertise through the use of billboards in order to grab peoples attention and to draw them in to learn more about our brand. in the main o ur product will shine when people are able to see our product in person where someone can show them how it actually works, but with the billboards we will get the bareMinerals name out there. Since this is most in all probability the first time many of these people have seen or perceive about our product, our first step is just to get people to start asking questions and wanting to know more about us and our products. drawframe Though advertising through billboards and magazines will be part of promoting our product, one of the main ways we plan on getting our product out there is by having our product in one of the most well known cosmetic trade shows around Asia. In-Cosmetics has been at the pass of the Asian cosmetics industry. Rotating between Malaysia, Indonesia, The Philippines, Korea, Thailand and Chine and attracting visitors from 59 different countries, the show has enabled many suppliers and buyers from across the continent to meet face to face.For this reason, In-cosme tics Asia is the perfect platform to assistant us launch and promote to a captive audience from end-to-end the region of Asia. There are many exhibitors that will be present world known top quality brands of perfumes, cosmetics, hair care, skin care, toiletries, salon and spa products and equipment. In-Cosmetics Asia is the leading scientific, business and networking trade event for personal care ingredients in Asia. They rotate the region annually, and the show attracts finished product manufacturers sharp to meet international ingredients exhibitors and features highly popular educational seminars.This tradeshow will get us in with some of the best cosmetics in Asia along with some very influential people and companies. This part of our promotion is what could give us that jump start along with a good outlet to possibly expand our business more later on in other parts of Asia. The tradeshow that In-cosmetics held in Singapore last year was attended by 2,202 qualified visitors . These are people who can get the bareMinerals name out there and have it be known by people in Asia, along with possibly wanting to put our product in a store near them. To further ease us, this years In-cosmetics tradeshow will be held in Bangkok, Thailand.This will put us in the perfect position for us to be in because our product should be in The Emporium by then and the tradeshow will be in town for everyone to really learn about our product. It will be a big exposure event for us. drawframe drawframe position drawframe We are planning to be located in Bangkok, Thailand which is a key point on round-the-world air routes. It is the political, commercial, cultural, and transportation kernel of the country, with the only port that can accommodate oceangoing vessels. Specifically our product will be placed in The Emporium Department interject located in The Emporium of Bangkok.It is home to top local and international brands, local and visiting celebrities, and also Kateoy or ladyboy beauty consultants along with high society shoppers. The Emporium is like a polished magazine come to life. It has seven layers of shoppers paradise, where the first three floors are dedicated solely to world-class, international designer fashions. The Emporium Department Store is a authorized among malls of its kind, featuring deluxe fashion brands like Chanel. There is also a never ending Beauty Hall with porcelain faced experts who will consult and admirer customers like no other.The Beauty Hall is specifically where we will be located in the Department Store. In this space our product will have experts that will be able to show and tell customers what our mineral makeup is and how it works. This mall attracts our target market and will be the perfect outlet to sell our product from. The Emporium Department Stores Beauty Hall draws in people who are looking for higher end international brands of makeup and are looking for that one-on-one help that this area offers. With this location we will be able to show people how to use and apply our makeup and show them the benefits while they are in the store.This location in itself will aide to the sales of our makeup especially because it is a new product, so many people may not know what it is or how exactly it works. By having a location that has personnel on hand just to help customers with the product we will be able to further spread the word of this new product to Bangkoks women. Logistics Bare Escentuals, Inc. already has some global exposure in countries such as the US, UK, Japan, France, Germany, and Canada. They are able to deliver their cosmetic products through various distributors however, wholesale distribution will be the only mean of distribution in Bangkok, Thailand.Due to Bare Escentuals company resources it would be too costly to design a department within the company that would take care of making sure our products would arrive to their Bangkok retail destinations. Instead, a much more cost-effective and reliable option was chosen. Bare Escentuals will be outsourcing their full logisticals strategy to APL Logistics, Ltd. APL Logistics offers a wide range of logistic services that include international logistic services. They also have a 250,000 sq. ft. facility located in Bangkok. From this facility, APL Logistics is able to warehouse and distribute products to retailers in the area.Almost half of APL Logistics operations come from transporting consumer products to retailers. It is evident that APL Logistics will provide Bare Escentuals with all of our logistic needs. APL Logistics will take our cosmetic products from the US, ship them overseas to Thailand, store them in their local Bangkok warehouse, and distribute our cosmetics products to local retailers of our choice. drawframe Sales, net For our sales, net, we recognize agree Bangkoks population to be 11M with 70. 5% being between 15-64 years old, 35. 6% being women, and 54% considered to be middle-to-upp er class.That gives us a total of 1,490,821 as our target market. However, not every single person in our target market will buy our product. We assume that about half of our target market (745,411) will buy our product. If our products cost each person $59. 95, our total sales would reach 44,687,389. However, harvests are calculated in our sales, net. We assume that about 25% of our buyers will return our product. That leaves us with total sales, net of 33,515,542. We do not want to make more products than we expect to sell, but we also do not want to make fewer products than we expect to sell.Therefore, a median of 1,118,116 products will be made. Assuming that to make one product it costs us $15. Therefore, our cost of goods sold in Thailand is 16,771,740. Our gross profit is our sales, net minus our cost of goods sold. Selling, General, and Administrative write off Our selling, general, and administrative costs include third-party fulfillment costs by APL Logistics, research a nd development costs, legal costs, and advertising costs. Budgets for all the following categories are as follows 5,000,000, 500,000, 30,000, and 5,000,000 respectively. Depreciation and amortizationBare Escentuals will not have to buy neither stead nor equipment to operate in Thailand. Therefore, neither depreciation nor amortization related to Thailands operations will be accept. Although our new operation in Thailand, may increase stock-based compensation in the US, no stock-based compensation in issued on the international level. No company restructuring will occur for our operation in Thailand to exist. Our operate income comes from our gross profit less all expenses incurred. Interest Expense All of our Thailands operations will be funded by Bare Escentuals.Therefore, no interest expenses will be incurred for our Thailand operations. No current debt has been recognized and no debt will be incurred to operate in Thailand. Other Income, net Other income, net decreases is attr ibutable to foreign currency transaction losses resulting from fluctuations in the value of the US dollar as compared to certain foreign currencies. Income B*efore* Provision of Income Taxes Provision of Income Taxes Thailand has 20% duty tax for finished goods that are brought into Thailand that we need to expense for. The 20% tax is taken from income before provision of income taxes.Net Income Net income comes from income before provision of income taxes minus provision of income taxes. Action Plan Marketing Strategy Marketing Objectives Increase product awareness among our target market Inform target market about the benefits of our product and its competitive advantage Decrease or remove potential customers resistance to buying our product by promoting awareness on how mineral-based cosmetics are better than oil-based cosmetics Goal In the first five years of operation in Bangkok, Bare Escentuals hopes to reach at least 25% of our target market.Strategy Implementation TV advert ising Print advertising upgrade and demonstrate our product at health and beauty tradeshows Because consumers are much hesitant about buying a product they know little about, gaining the consumers confidence is crucial. We will create a marketing fly the coop that emphasizes the quality and value of our product while showcasing the benefits of using an all-natural product. We plan to trickle out this plan in the beginning of the year with an advertising compute of $5 million. Potential Results Worst case scenario 0% of our target market or 447,246 people will buy our product at $59. 95 Our cost of goods sold and expenses would be $27,301,740 Even before reaching net income on the financial statement, we have a deficit balance that would prevent us from further business transactions Regular case scenario If the return of the product remained at 25%, about 186,353 buyers would return our product We would have an operating income of $6,213,802 Even after reaching net income on the financial statement, we would have a sufficient operating income to continue to operate take up Case Scenario 0% of our target market or 894,493 people will buy our product at $59. 95 If the return of the product remained at 25%, about 223,623 buyers would return our product Our cost of goods sold and expenses will be $27,301,740 We would have an high operating income of $12,916,901 Even after reaching net income on the financial statement, we would have a superior operating income that would allow us to continue to operate and perhaps start looking at other possible international markets Contingency Plan Bare Escentuals, Inc. ill expand into other foreign markets if we successfully sustain the growth in Thailand as we have in the United States. With careful consideration, we will focus on emerging markets for expansion. We need to look at cost and timing of expansion, economic climate, culture issues, and cash flow of our company. Our company will do ongoing research and rely on solid market analysis in maintaining sales and growth in these markets. If we see that we are not generating revenue or meeting our full potential in Thailand, we will better position ourselves successfully in the market.We will cut advertising costs, conduct research surveys, and focus groups to better determine the needs of our current target market. If we fail to sustain sales and increase market share, then we will be forced to stop selling our product at the Emporium in Bangkok. Though we have suffered a loss, we could develop new marketing strategies and put our focus on other foreign markets. 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