Beauty R' Us Beauty and Beyond Marketing Audit

Beauty R' Us Beauty and beyond Marketing Audit

Elmer Enrнquez Torres

University of Phoenix

MKT 551 Marketing Management

Prof. Mario E. Dбvila

10/02/2004

Workshop #6

Beauty R' Us Beauty and beyond Marketing Audit

Table of Contents

Executive Summary 3

Table 1: 2004 Beauty and beyond Core Growth Staircase 7

Table 2: 2005 Beauty and beyond Core Growth Staircase 8

Table 3: 2005 Gifts & Candles Growth Staircase 9

Table 4: 2005 Home Entertainment/Toys 10

SWOT Analysis 11

Environmental Aspects 13

Marketing Objectives 15

Marketing Strategies 16

Marketing Tactics 18

4P's 20

Promotion 23

Organization 24

Recommendations 25

References 26

Beauty R' Us Beauty and beyond Marketing Audit

Executive Summary

Women's

Our rustic artisan concepts did not perform as expected, but the heritage related collectibles proved to be a popular one that can help us meet our 4th QTR numbers.

According to this trend, we should touch base again with our artisans-suppliers to review their capacity to provide the expected demand that the coming peak seasons like Christmas should signify.

We should move towards more heritage related and colorful concepts with a high perceived value. Also, we should launch artisan colorful dйcor events within quarters with more perceived value at a reasonable price.

Colorful decorative concepts (such as Butterflies plaques set of 3 at $16.99, and Apples & Fruits Events) generated peak sales.

All last year's hallmark seasons were soft ones except for Christmas. We should maximize Christmas sales with lights, motion and sound concepts.

Our targeted markets showed to be very price sensitive; combined with aggressive pricing schemes from our competitors, should force us to find ways of improving our margins. One such way, is to negotiate with our suppliers more beneficial returns policies where they are in place and to establish new ones with those whom we don't have any.

High density in stores affected targeted sales. We should improve merchandizing reducing density within spreads and maintain clean surfaces.

Candle segment grew 26% versus PY as a result of the complete Fragrance For Home theme. We should continue to offer the complete Fragrance For Home theme expanding into electric home fragrance concepts.

Men's

Grooming aids, licensed concepts, electronic concepts, tools and gadgets generated peak sales. We should maximize opportunity growth on this segment with new and different gift alternatives. Our new Men's catalog should allow us to capitalize on the fast growing self-awareness trends among young males.

Kids

Licensed concepts such as Kitty, Barbie and Princess did not perform as expected. We should continue to move towards new hot licenses such as Strawberry Shortcake. Licensed dйcor proved favorably with peak sales.

Books and prints sales were soft compared to previous year by 16%. We should continue to offer Kids' lifestyles events once within quarters. Also, we could move towards interactive, educational books with more perceived value at a competitive price. Offer a wider variety within licensed concepts increasing educational children's audio presence and continue with licensed characters audio.

Audio segment did not perform as expected. Audio compilations have proven unfavorable with low productivity per concepts and decreased sales. Adult audio could be re-directed towards classic winners such as compilations from Trio Los Panchos, Danny Rivera, etc; and target a new audience of kids age 11-16 with new clean Spanish style reggae music.

Home Video sales have increased due to Spanish availability of licensed and family oriented movies. We should continue to offer movies with Spanish option and character videos in DVD and VHS format.

Electronic concepts continue to perform with high productivity and increased sales. Games and activity licensed concepts from characters such as Princess and Barbie did not perform as expected. We should continue to offer electronic and TV games, also launch electronic educational toys which have proven to be successful in the past. Re-focus towards educational focused concepts.

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Beauty R' Us Beauty and beyond Marketing Audit

SWOT ANALYSIS

Strengths

* Highly developed Kids lifestyle segment with strong sales representing 35% of total sales.

* Unique artisan/heritage designs.

* Established Family Entertainment in Spanish

* Return to vendor base in the segments