BELLA COSMETICS β

OUR COMPANY Founded by John and Mary Bella 10 years ago. First successful product was E-Z Hair. Today, Bella Cosmetics has produced over 30 different “High Tech” products. Our mission is: create “high tech” products at lowest price.

E-Z-NAILS

E-Z-NAILS 10’’ long x 5’’ wide x 5’’ deep electronic nail maker. 10’’ long x 5’’ wide x 5’’ deep electronic nail maker. Has a “beauty kit” attached to the machine with nail matrix, polish supplies, and cuticle removers. That lasts up to 8 uses. Has a “beauty kit” attached to the machine with nail matrix, polish supplies, and cuticle removers. That lasts up to 8 uses. All 5 fingers go inside the machine at the same time. Use is very simple. All 5 fingers go inside the machine at the same time. Use is very simple.

E-Z-NAILS Once inside, your nails will be Once inside, your nails will be 1. cut by an electronic laser, 2. cuticle will be removed 3. nail will be polished, painted 4. and finally will come out completely dry. A regular manicure job takes 45 minutes. A regular manicure job takes 45 minutes. E-Z-NAILS TAKES ONLY: E-Z-NAILS TAKES ONLY: 7 MINUTES. 7 MINUTES.

DEMOGRAPHICS

Bella Cosmetics is targeting E-Z NAILSas a product for the ENTIRE family. Middle and Upper Class. Bella Cosmetics is targeting E-Z NAILSas a product for the ENTIRE family. Middle and Upper Class. From the teenage daughter to the grandmother From the teenage daughter to the grandmother Even the father that needs to be presentable at work can use it Even the father that needs to be presentable at work can use it A good ramification of our demographics would be single women that works and also do not have time to go to hair saloons. A good ramification of our demographics would be single women that works and also do not have time to go to hair saloons.

The next 2 charts will describe more our demographics: The next 2 charts will describe more our demographics:

Place Strategy

USA AND JAPAN USA AND JAPAN Typically busy families that need “high tech” products in order to save time. Typically busy families that need “high tech” products in order to save time. Good adaptation due to “high tech” availability. Good adaptation due to “high tech” availability. In these countries middle and upper class families tend to consume “high tech” products. In these countries middle and upper class families tend to consume “high tech” products.

Environmental Scan

USA: USA: 1. Socially, Middle and Upper Class have great level of education. 2. Also these families have a high rate of acceptance for new technology products. 3. In terms of technological forces, USA has great facilities that will make E-Z Nails easy to produce. 4. Economically, USA has a very solid economy and carry the status of a develop country. 5. After a market research was done, Bella Cosmetics found NO competitor for E-Z Nails in USA market. 6. USA gov’t gives a lot of incentives to new “tech” products.

JAPAN: JAPAN: 1. Japanese people have one of the highest level of education in the world. 2. Advanced technological facilities. Bella Cosmetics will take advantage by opening a local factory in OSAKA. (tax advantages) 3. Japan’s market for “high tech” products is treated as a necessity within its society. 4. This generates, big sales and significant increases in company’s revenues. 5. There is NO competitor for E-Z Nails in Japan. 6. With the idea of opening a local plant in Osaka, Japan’s gov’t will give incentives and support to Bella Cosmetics.

WAGES AND RATES

Engineers and designers wages are considerably high. Engineers and designers wages are considerably high. The idea of Bella Cosmetics is to make partnerships with Universities in Japan and hire as part of staff, trainees and recent graduate engineers. The idea of Bella Cosmetics is to make partnerships with Universities in Japan and hire as part of staff, trainees and recent graduate engineers. With this concept, Bella Cosmetics is seeking to a reduction of its fixed costs. Making E-Z Nails production line cheaper. With this concept, Bella Cosmetics is seeking to a reduction of its fixed costs. Making E-Z Nails production line cheaper.

RELATED & SUPPORTING INDUSTRIES

Bella Cosmetics will establish partnerships with other cosmetics companies for E-Z Nails replaceable “kits”. Bella Cosmetics will establish partnerships with other cosmetics companies for E-Z Nails replaceable “kits”. MAC, AVON, REVLON are examples of companies that will also manufacture our “kits”. MAC, AVON, REVLON are examples of companies that will also manufacture our “kits”. Using the Related & Supporting Industries concept Bella Cosmetics will reduce and share risk and costs of the “kits” production line. Using the Related & Supporting Industries concept Bella Cosmetics will reduce and share risk and costs of the “kits” production line. So, E-Z Nail’s consumer will buy the best “kit” he or she thinks will meet his or her needs. So, E-Z Nail’s consumer will buy the best “kit” he or she thinks will meet his or her needs.

DEMAND CONDITIONS

After extensive research and surveys, the demand conditions for E-Z Nails will be spectacular; After extensive research and surveys, the demand conditions for E-Z Nails will be spectacular; First because there are NO competitors in the market. First because there are NO competitors in the market. Second, because E-Z Nails market share will be tremendous, due to the lack of competition. Second, because E-Z Nails market share will be tremendous, due to the lack of competition. Demand trends show that more “high tech” products are being consumed among middle and upper class families. Demand trends show that more “high tech” products are being consumed among middle and upper class families. Bella Cosmetics will make a strong publicity of E-Z Nails. Specially relating our product with well known brands. ( Avon, Revlon, Mac) Bella Cosmetics will make a strong publicity of E-Z Nails. Specially relating our product with well known brands. ( Avon, Revlon, Mac)

PROMOTION

Bella Cosmetics will be advertising E-Z Nails in four channels of communications: Bella Cosmetics will be advertising E-Z Nails in four channels of communications: 1. Television 2. Magazines 3. Supermarkets 4. Web Site ( TV: afternoon and evening TV: afternoon and evening famous entertainment and comedy shows famous entertainment and comedy shows 1. Howard Stern 2. Fashion Shows 3. Friends 4. Seinfield 5. Movies Premiers

Example of TV Advertisement Example of TV Advertisement Bella Cosmetics will use Julia Roberts as its main image, to present E-Z Nails. Bella Cosmetics will use Julia Roberts as its main image, to present E-Z Nails. She will demonstrate how E-Z Nails should be used in day to day life. She will demonstrate how E-Z Nails should be used in day to day life. Julia Roberts will also show how the kits are easy to use. Julia Roberts will also show how the kits are easy to use.

Magazines: Vogue, Cosmopolitan and Nipponia will be the main advertising magazines to introduce our product. Magazines: Vogue, Cosmopolitan and Nipponia will be the main advertising magazines to introduce our product. These magazines will have coupons attached, in order to incentive people to buy our product. These magazines will have coupons attached, in order to incentive people to buy our product. Supermarkets: K-Mart, Wall-Mart, Publix, Japanese supermarkets will be our distributors. Supermarkets: K-Mart, Wall-Mart, Publix, Japanese supermarkets will be our distributors. Consumers will have the chance to see and test E-Z Nails for free. Consumers will have the chance to see and test E-Z Nails for free. There will be a stand in each supermarket, with live demos, and special deals in order to attract compulsive buyers. There will be a stand in each supermarket, with live demos, and special deals in order to attract compulsive buyers.

Fashion Shows: Bella Cosmetics, will sponsor fashion shows in which E-Z Nails will be presented. Fashion Shows: Bella Cosmetics, will sponsor fashion shows in which E-Z Nails will be presented. Coupons will be also available at these shows in order to increase and incentive sales. Coupons will be also available at these shows in order to increase and incentive sales.

S.W.O.T

Strengths 1. Fits all hands’ sizes and shapes 2. Full Nail Job takes 7 MINUTES!!!!!!, compared to the usual minutes taken by a regular manicure. 3. Price. Through extensive research, E-Z Nail costs only 10% of the average annual spending. 4. Durable product. ( life time warranty).

WEAKNESSES The tradition of women going to hair saloons is taken away. The tradition of women going to hair saloons is taken away. Some sort of unemployment can occur within the manicure career. Some sort of unemployment can occur within the manicure career. Loyalty of hair saloon customers Loyalty of hair saloon customers

OPPORTUNITIES The “kit” can be linked to other big cosmetic brands, generating extra revenue. The “kit” can be linked to other big cosmetic brands, generating extra revenue. The “kit” will create a new market segment because consumers will have to buy it constantly. The “kit” will create a new market segment because consumers will have to buy it constantly. Consumers will adopt the use of E-ZNails as a habit, leading to extra uses within a month. Consumers will adopt the use of E-ZNails as a habit, leading to extra uses within a month.

THREATS Counterfeiting ( cheap imitation) The brand “E-Z Nails” can be associated with a lower quality and unsafe product.

POSITIONING MAC Group Inc, positions retail outlets in 2 dimensions ( Breadth of product line + value added) MAC Group Inc, positions retail outlets in 2 dimensions ( Breadth of product line + value added) Low value and narrow line of products. Low value and narrow line of products. Sold in major hair saloons, supermarkets and through Bella Cosmetics web site. ( Sold in major hair saloons, supermarkets and through Bella Cosmetics web site. ( Pricing, store locations, atmosphere and image are the most important points needed to be covered. Pricing, store locations, atmosphere and image are the most important points needed to be covered.

PRICING Markup, markdown and timing for markdowns. Markup, markdown and timing for markdowns. Markups: Original and maintained Markups: Original and maintained Final selling price of E-Z Nails is $150 Final selling price of E-Z Nails is $150 Final selling price of “kits” is $45. ( for 8 uses) Final selling price of “kits” is $45. ( for 8 uses) 3 “kits” for $110 3 “kits” for $110

LOCATION Central business centers Central business centers Regional Shopping centers Regional Shopping centers Community Shopping centers Community Shopping centers Strip locations Strip locations Bella Cosmetics web site Bella Cosmetics web site 3 Retail stores ( 2 in USA east and west cost; and one in Japan, Tokyo) 3 Retail stores ( 2 in USA east and west cost; and one in Japan, Tokyo)