yself)!

small range of lippies nourishing, hydrating balm meets lipsticknude earthy colours & soft lustre for a naturally beautiful healthy glowculinary combined flavours: from oils of kitchen herbs and aromatic spices Menu of delicious foodie variety namesElegant, soft-touch wind up printed slimstick, printed box or eco-chic flow wrap. purse and pocket friendly for every day applicationsubtle, not made up look for everyday wear : @home, dropping off kids, shopping, gym/whilst exercising, meeting friends, under bright office lightsideal for when you dont have time to wear anything but lippy, soft and subtle to apply without a mirror cause you are on the run!Delicious little treat an instant multisensory, active pick me up!rrp around $20. 66. What are the product cost targets ? I am still tossing up whether to share this or not online!! If you

67. part B)3. Sales & Marketing 68. background This is the best bit: how much do I need to sell to make money, where will the range be sold, and how do I plan to achieve the sales targets. (on 15 hrs pw of my time!) I have crunched numbers on sales targets (value & volume) product costs, sell prices and what I can afford to spend to support the brand. I have pulled together a one pager on my promotional tactics and shared some ideas, some I will implement. I have not allocated tasks or times or costs, I will work the detail in a separate document, later. Ive kept it simple; I think it paints a pretty picture! 69. GSV ($AUS)Year 1 (FY 2012) $250k Year 3 (FY 2015) $1mDirect Sales(Online & other)Year 1 $250k (100%)Year 3 $500k (50%)via doors/stockists/portals(inc international)Year 1 $0k (0%) Year 3 $500k (50%)What are our sales targets?Product Assumptions:@ $19.95 rrp = 13,750 units pa = 1100pm@$24.95 rrp 11,000 units pa = 900 pmGSV = gross sales value 70. Where will the product be sold ?Year 1: via Online. Target $250k GSV With the need to manage a simple backend coupled with consumers growing desire to purchase online, it opens up theopportunity to engage customers in a more direct, cost effective and meaningful way than through traditional stockists environments.How?Create an active & engaging website with online shop for domestic sales. Support with an intimate social media & word-of-mouth marketing strategy. Product to be stored, picked & packed in-house, when it becomes unmanageable, outsource to TPL. 71. In future, how do we grow sales?Sales year 2&3 can be generated from increasing distribution & / or via increasing the product offer. New Products &/or categories: - lip products, cheek colour, eye colour. Body care - digestible beauty productsb) New Channels & /or Territories / Geography.TV ShoppingOnline portals beauty, specialist, Traditional Retail (direct or via distributors)Speciality retail : Food, Health, Organic shops HomewareStoresDepartment Stores self select Hampers inc corporate giftingChemistsBeauty Salons Day and Residential spasTravel: Duty Free @ international airports; hotel room amenities or VIP gifts; airport lounges and business/first)4. Export / International 72. Year 1 (FY 11)$55k22% GSVStock Returns& ullage$2kSelling(consultants) $20k(8%)What are our selling costs?Postage & handling$33k(13%)Trade Discounts$0k

73. Year 1 (FY 11)$40K16% GSVNPD$5k2% GSVMerchand-ising$0k0% GSVConsumer Promotions $25k10% GSVTrade Promotions$0k0% GSVAdvertising$OK0% GSVPR(Sampling)$10K4% GSVWhat is our marketing spend? 74. What is our contribution (gm)?YEAR 1GSV (direct sales) = $250kCOGS = $50K (40% on W/S sell price)SELLING COSTS = $55k (22%)MARKETING SPEND = $40k (16%)TOTAL COSTS (Before fixed expenses) = $145K (58%)CONTRIBUTION (Gross Margin) = $105K (42%) 75. what is the market entry strategy?Key to start up is being cash-flow positive on launch/within Qtr 1. This will be achieved via a 2 prong strategy to pre-sell 10,000(!) lipsticks prior to placing purchase orders on stock packaging & finished goods:Key account trade / promotionalTarget a major brand in travel / hotel industry with brand or co-brand deal. This will commence as soon as prototypes are ready.2) Consumer Sampling campaignGenerate pre-launch first to buy orders with W-O-M promotional activity. 76. how are sales targets achieved?Passion. Personal relationships. Knowledge. Technology!Utilise the power of social media & word-of-mouth-marketing. We will attract people, brands & businesses that reflect our values. See promotional plan.Backend, we will utilise technology to run the business in real time and efficiently. We will create intimate relationship with all stakeholders including contractors and suppliers to ensure supply of product. Orders, customers details and payments are customers entered.Our expertise is in developing and launching new products; budgeting, project management, and execution is a given to ensure timing, profit & stock targets are hit. (children getting sick excluded!) Budget allows for sales consultants/freelance contractors to seek & find online consumer clusters prospects and who can assist in rolling out our social media strategy. 77. how will we promote the brand?AdvocacyCreate advocate programmes & build loyal brandpartners (key opinion leaders) to refer brand and influence peers SharingCreate, contribute & interact with communities & connect people. Facilitate co-creation and information sharing. Blog TwitterFacebook You tube TV forumTrial/SamplingEstablish cost-effective online sampling. Build on-going network ofbrands, events, magazine, online contactsto initiate sampling& promotionsConnection Grow strong personal relationships with consumers and enable consumer