Marketing Plan for a Cosmetics Company Essay -- Business Marketing Fin

Marketing Plan for a Cosmetics CompanyEXECUTIVE SUMMARY.CosmoCosmetics.1389 sun 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 abatement for this type of dividing line since no make up brands specialise in this target. CosmoCOsmetics would be the exclusive manufacturer that sells to cosmetic retailers.Not only would emphasise on the variety of colours but also the packaging of the product. 1.The colours would be adjusted to this type 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 mesh any space in the hand bag, extremely easy to use and achieves the best natural and professional results any woman would dream of.After analyze the cosmetic market we can identify a series of needs in this market1.EASE OF USE 2.AVAILABILITY3.PORTABILITY4.VARIETY OF COLORS5. s teadfast Our Spray Foundation would meet these needs by offering 1)Spray packaging with a diffuser. 2)Big cosmetic retailers across South Florida, near business areas and suburbs (Miami Downtown, North Miami Fort Lauderdale, West Palm Beach.3)Compact size 30 ml.(doesn?t occupy much space in the lady?s purse).4) vicissitude of colours adjusted to their type of skin tone.5)Long Durability Just needs to be applied once a day, for long lasting results. The combining of powder + minerals will make the makeup last longer leaving a moisturized and natural look.Market.Household and personal care product companies are make efforts to stimulate sales in a variety of ways, such as entering 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, have grown at medium annual rates of 6.0% and 7.5%, respectively, according to US Census Bureau retail trade data.The US and Western European markets are reaching 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 $183.911Cost of goods sold $43.500-------------Gross win $140.411Calculating the ratio of variable expenses to net salesThe percentage is $43.500/ $183.911 = 23.65%Cosmo-cosmetics Co. uses $0.246 out of every sale dollar to cover variable expenses, leaving $0.753 as a contribution margin to cover fixed costs and make a gelt. (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 $183.911 (Point A= Income)Income & Expenses Sales Volu me The break-even point is located in the intersection mingled with the total 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 range ?Profit area?