eos roducLs LLC 1 LxecuLlve Summary eos roducLs LLC ls on a mlsslon ls Lo provlde a safe and naLural producL made of organlc lngredlenLs LhaL has proven Lo be effecLlve aL a reasonable prlce for every woman" who wanLs Lo use a safe clean new producL LhaL has noL been LesLed on anlmals and ls focused on provldlng Lhe hlghesL quallLy naLural lngredlenLs avallable AfLer relnvenLlng shavlng cream eos declded lL was Llme Lo work on lmprovlng Lhe resL of Lhe beauLy alsle CreaLlng beauLy producLs for women LhaL are appeallng ln packaglng and performs Lo Lhelr hlghesL expecLaLlons ls a key ob[ecLlve for eos 1hls ploneerlng company has plans Lo launch a full llne of producLs LhaL wlll Lake care of common concerns such as molsLurlzers LhaL absorb qulckly wlLhouL leavlng skln feellng sLlcky or greasy body wash LhaL wlll noL dry ouL Lhe skln and llp balm LhaL wlll be organlc safe and effecLlve 1he markeLlng plan for eos lncludes sLraLeglc focus plannlng a slLuaLlon analysls a SWC1 analysls lndusLry analysls wlLh a focus on compeLlLors ln Lhe llp balm markeL a company and cusLomer analysls a markeLlngproducL focus Lhe markeLlng program flnance and daLa pro[ecLlons Lhe organlzaLlonal sLrucLure lmplemenLaLlon plans and flnally an evaluaLlon and conLrol revlew
2 Company uescrlpLlon 8ased ln new ?ork ClLy eos roducLs LLC ls a newer company LhaL launched lLs AnLloxldanL shavlng cream a producL LhaL ls LoLal deslgn and formulaLe for women Lo promoLe healLhy radlanL skln ln !uly 2008 eos roducLs LLC Lhe evoluLlon of smooLh" was looklng for a shavlng cream LhaL reflecLed womans senslblllLy 1he eos shavlng cream helped Lo creaLe a closer shave and leave skln smooLh and sllky eos belleves ln creaLlng a beauLy producL wlLh a unlque blend of naLural lngredlenLs eos prldes lLself wlLh creaLlng lnnovaLlve and sLyllsh beauLy producLs Lo meeL Lhe needs of Loday's modern women eos producLs meeL Lhe hlghesL sLandards and Lhey are carefully crafLed uslng naLure's besL lngredlenLs CurrenLly eos has Lhree maln producLs shavlng cream llp balm and body loLlon and Lhese producLs are avallable ln company webslLe selecL 1argeLs WalMarLs local drug sLores and many onllne beauLy sLores
Why we choose eos organlc llp balm? ur MehmeL Cz known by an admlrlng 1v audlence slmply as ur Cz" ls Lhe vlce chalr and professor of surgery aL Columbla unlverslLy Pe dlrecLs Lhe Cardlovascular lnsLlLuLe and ComplemenLary Medlclne rogram aL new ?orkresbyLerlan PosplLal Pls research lnLeresLs lnclude hearL replacemenL surgery mlnlmally lnvaslve cardlac surgery complemenLary medlclne and healLhcare pollcy Pe has auLhored more Lhan 400 orlglnal publlcaLlons book chapLers and medlcal books and has recelved several paLenLs 8ecenLly on one of hls 1v shows he dlscussed healLh concerns wlLh cerLaln well known and commonly used cosmeLlc lLems 1he followlng are some of Lhe lLems he menLloned
Mlneral powder Lhe nanoparLlcles ln Lhe powder dusL can geL lnLo your lungs and scar your lungs whlch can cause lnflammaLlon and flbrosls 1he parLlcles are so small LhaL Lhey seLLle and you canL geL Lhem ouL AlLhough Lhere are no sLudles whlch suggesL LhaL Lhls ls harmful for Lhese reasons buL experL say lL Lakes 1030 years for mlners and consLrucLlon workers Lo develop sympLoms of lung dlsease 1herefore lL ls probably wlser and healLhler Lo use llquld foundaLlon cream foundaLlon or pressed powder AnLlwrlnkle cream fragrance ls bad color ls bad lor lnsLance lavender causes cell deaLh clnnamon eucalypLus menLhol breaks down collagen causes lnflammaLlon 1he experL says 8oLox alLernaLlves are hogwash and a markeLlng glmmlck 1hus lL ls lmporLanL Lo conslder producLs whlch are fragrance free color free and conLaln vlLamln A (reLlnol) and Alpha Pydroxy Acld Llp Closs conLalns peLroleum [elly whlch ls exLremely bad LsLlmaLe 7 pounds of peLroleum [elly wlll be absorbed lnLo your body over your llfeLlme lf you use llp gloss every day When women are dlagnosed wlLh breasL cancer Lhelr levels of Lhls subsLance are Lwlce as hlgh as women wlLhouL breasL cancer 1herefore flnd llp gloss or llp producLs wlLh naLural lngredlenLs and ones wlLh zlnc oxlde made from beeswax conLalns a sunscreen
Los ls LargeLlng Lo lndlvlduals who wanL a quallLy producL made from naLural lngredlenLs whlch wlll provlde proper coverage do Lhe [ob buL noL cosL an arm and a leg 1haL ls why we are selecLlng LCS organlc llp balm 3 SLraLeglc locus and lan lndusLry 1rends 1he cosmeLlc lndusLry ls a huge compeLlLlve markeL whlch has greaL buslness opporLunlLles 8uL due Lo healLh concerns such as Lhe ones menLloned on Lhe ur Cz show Lhere ls deflnlLely an lncreaslng need Lo produce naLural producLs LhaL would noL pose a healLh rlsk and provlde beLLer resulLs Lo lndlvlduals Mlsslon Los' prlmary mlsslon ls Lo provldlng Lhe hlghesLquallLy all naLural producLs Lo Lhe markeL aL an affordable prlce LhaL even a glrl nexL door can own lLs producLs 1he organlc and naLural lngredlenLs of Lhe producLs provlde cusLomer a beLLer cholce whlle also allow all cusLomers Lo en[oy Lhe greaL skln care experlences Coal(s) Los wlll provlde lLs cusLomers Lhe besL llp care producL LhaL replaces ChapsLlck 8llsLex and 8urL's 8ees Llp 8alm and many oLher greaL skln care producLs ln Lhe near fuLure Los has seL lLs buslness and flnanclal goals for Lhe nexL 3 years 8uslness goals 1 1o esLabllsh Lhe brand awareness and lmage as an all naLural and organlc sklncare producL llne whlch wlLh hlghesL quallLy and affordable prlce Lo every cusLomers 2 1o have 23 more new sales channels boLh onllne sLores and real sLores 3 1o launch new sklncare producLs sLarLlng by lnLroduclng eos body loLlon ln 2010 4 1o become one of Lhe leadlng brands for women's shavlng cream (flrsL producL) and llp balm (second producLs) lndusLry llnanclal Coals 1 1o lncrease markeLlng sales by 3 Lo 7 each year and a growLh ln earnlngs for 6 per year 2 1o obLaln a reLurn on equlLy of 30 ln Lhe nexL flve flnanclal years 3 1o cuL down Lhe producLlon cosL and lncrease Lhe producLlon volume over Llme Core compeLency and SusLalnable compeLlLlve advanLages 1he core compeLency of eos ls Lo provlde unlque hlghquallLy and affordable sklncare producLs LhaL only use Lhe mosL naLural lngredlenLs Meanwhlle Lhe company wlll launch new producLs Lo saLlsfy cusLomers' needs and keep lLs quallLy sLandards Los values cusLomers revlew Lherefore eos wlll evaluaLe each producLs sales number and markeLlng plan hold meeLlng wlLh lLs dlsLrlbuLors and reLallers on a monLhly base Lo bulld a beLLer relaLlonshlp Lo lncrease cusLomer saLlsfacLlon SLraLegles A markeLlng plan lncludes uslng focus group and webslLe revlews offerlng samples and coupons and adverLlslng ln magazlnes for women of all ages 8aLher Lhan uslng a spokes model Lhe company wlll choose uslng Lhe glrl nexL door" Lo presenL and promoLe lLs producL as someLhlng naLural and down Lo earLh"
4 SlLuaLlon Analysls SWC1 Analysls llgure 1 shows Lhe lnLernal and exLernal facLors LhaL affecL Lhe markeL opporLunlLles for eos 1hls SWC1 analysls hlghllghLs Lhe greaL sLraLegles Laken by Lhe company slnce lLs producLs flrsL launched Lo Lhe cusLomers llgure1 SWC1 Analysls for eos LLC lnLernal lacLors | SLrengLhs | Weaknesses | ManagemenL | LLC flrm enLrepreneurlal/small group easy Lo manage | Small slze can resLrlcL opLlons | Cfferlngs | unlque hlgh quallLy and organlc producLs | Many brand name compeLlLors | MarkeLlng | Avallable onllne and ln maln chaln drugsLores/supermarkeLs | 8esLrlcLed shelf space ln sLores lack of brand awareness | ersonal | Small buL professlonal workforce | 8lg gap lf employees leave | llnance | SLable growLh ln sales revenue | LlmlLed resources may resLrlcL growLh when compare wlLh glanL compeLlLors | ManufacLurlng | naLural and organlc lngredlenLs wlLh speclal formula LhaL ensures producL quallLy | Lack economles scale of blg compeLlLors | LxLernal lacLors | CpporLunlLles | 1hreaLs | Consumer/Soclal | 1argeLlng women consumer's markeL All naLural lngredlenLs are sulLable for everyone | 8rand awareness ls low whlle Lhe prlce ls a llLLle blL hlgher ln Lhe drugsLore llp balm | CompeLlLlve | ulsLlncLlve and unlque packaglng wlLh all naLural and organlc lngredlenLs | aLenL pendlng deslgn may lead a dupllcaLe producL ln Lhe markeL | 1echnologlcal | new Lechnology makes a small company can produce quanLlLy producLs wlLh reasonable cosLs | CLher blgger company may have beLLer Lechnology Lo produce lower cosL producLs | Legal/8egulaLory | Plgh uSuA sLandards | Merger and acqulslLlon beLween larger compeLlLors are approved by governmenL | lndusLry Analysls Llp 8alm Llp balm or llp salve ls a waxy subsLance applled Loplcally Lo Lhe llps of Lhe mouLh Lo relleve chapped or dry llps angular chelllLls sLomaLlLls or cold sores 1he prlmary purpose of llp balm ls Lo provlde an occluslve layer on Lhe llp surface Lo seal molsLure ln llps and proLecL Lhem from exLernal exposure Llps are parLlcularly vulnerable because Lhe skln ls so Lhln and Lhus Lhey are ofLen Lhe flrsL Lo presenL slgns of dryness Cccluslve maLerlals llke waxes and peLroleum [elly prevenL molsLure loss and malnLaln llp comforL whlle flavoranLs coloranLs sunscreens and varlous medlcamenLs can provlde addlLlonal speclflc beneflLs Llp balm usually comes ln Llny conLalners elLher one ln whlch a flnger ls used Lo apply lL Lo Lhe llps or ln a llpsLlcksLyle Lube from whlch lL can be applled dlrecLly
1hls Lrend ls abouL Lo change whlle eos has ushered ln a new era of llp balms Llp 8alm SmooLh Sphere 1hls llp balm ls packaglng ln an eggshape conLalner whlch Lhe Lop can be LwlsL off lnslde Lhe ball ls a smaller ballshaped mound of llp balm 1he unlque shape makes lL easy Lo flnd when you puL lL ln a bag wlLh many oLher lLems 1hese llp balms come ln Lwo dlfferenL packaglng whlle each of Lhem conLalns 023 ounces of llp balm versus 013 ln a Lyplcal chap sLlck Lube so Lhe cusLomers are geLLlng qulLe a blL more producL wlLh Lhls parLlcular llne
CompeLlLors ln Lhe llp balm markeL 1here are many blg brand names ln Lhls markeL 1he markeL represenLs over $338 mllllon ln annual sales (2003) for llpcare producLs conslsLlng of Lwo ma[or caLegorles llp molsLurlzers and proLecLors and medlcaLed llp producLs 1here are more Lhan 111 mllllon users for llp care producLs CurrenLly Lhere are Lwo companles conLrol abouL 30 of Lhe llp care producL markeL 8llsLex and ChapsLlck 8rand awareness and producL revlew are Lhe key facLors for consumers Lo choose a llp balm 1he maln sales channel for Lhe llp care producLs are Lhe drugsLores ($273 Mllllon ln 2000 $383 ln LoLal for year 2000)
Company Analysls 8ased ln new ?ork ClLy 1he LvoluLlon of SmooLh (eos) roducLs LLC ls a new company LhaL makes lnnovaLlve and sLyllsh beauLy producLs Lo meeL Lhe needs of Lhe modern woman eos flLs a womans sense of sLyle and also leLs her have fun ln Lhe process of geLLlng more beauLlful 1hls company plans Lo launch a full llne of producLs LhaL wlll smooLh ouL Lhe chores women once knew molsLurlzers LhaL absorb qulckly and donL leave skln feellng sLlcky or greasy body washes LhaL cleanse wlLhouL drylng and llp balms so beauLlful women wlll be exclLed Lo pull Lhem from Lhelr purse eos has a loL more smooLhlng on Lhe horlzon 1he company already launched shavlng cream and llp balm ln many dlfferenL opLlons and wlll have a new producL llne body loLlon comlng ouL laLer Lhls year All Lhese producLs are made of 100 naLural and uSuA cerLlfled organlc whlle Lhey are noL LesLed on anlmals whlch saLlsfled people's eLhlcal expecLaLlon of go naLural and deslre of a good lnnovaLlve producLs 1he vlLamln enrlched balms offer long lasLlng molsLure wlLh a shea buLLer formula and a cool deslgn CusLomer Analysls unllke many producLs Lagged for women whlch are derlved from mens formulas and packaglng eos ls bulldlng producL llnes LhaL Lruly appeals Lo Lhe modern woman who ls looklng for a beLLer sklncare experlences ln general llp balm ls popular and purchased by consumers represenLlng a board range of soclal background men or women youLh or senlor eLc Powever Llp 8alm Sphere ls more speclflc LargeLlng Lo modern consumers who wanL Lo have a more molsLure wlLh dlfferenL deslgn look 1hey llke lnnovaLlve producLs wlLh comparable quallLy LhaL Lhey are wllllng Lo buy and recommend Lo Lhelr frlends 1hese consumers are Lhe maln purchaslng lnfluence ln Lhe peers Women aL Lhe age from 16 Lo 33 are Lhe ma[orlLy buyers whlle Lhey buy Lhls llp balm sphere as a glfL Lo Lhelr famlly frlends and parLner Lhe end users can be anyone 8ecause eos Llp 8alm Sphere provlde a more molsLure producL wlLh all naLural lngredlenLs and unlque packaglng deslgn LhaL can be easlly flnd even lnslde a bag Lhe producLs' blggesL users Lend Lo be modern women who wanL Lo feel Lhelr llps very molsL wlLhouL belng sLlcky or waxy
3 MarkeLlngroducL locus MarkeLlng and roducL Cb[ecLlves eos Llp 8alm Sphere wlll be a common household name and used as Lhe premler and personal cholce llp balm producL slnce lL ls an appeallng producL belng 100 naLural AL Lhls Llme eos Llp 8alm Sphere ls avallable aL Walgreens 1argeL WalMarL CvS drugsLorecom ulLa CosmeLlcs and Amazoncom eLc 8uL lL ls noLed LhaL lL should be vlslble ln more drugsLores grocery sLores dlscounL and blg box sLores and healLh food sLores As for healLh food sLores CnC and PlPealLh would be a good ouLleL for Lhls producL and perhaps some mom and pop" healLh food sLores would also be lnLeresLed ln carrylng eos
1argeL MarkeL Los's LargeL markeL ls for all ages and prlmarlly focuses on Lhe Lhree 1's Leens LwenLles and LhlrLles 1oday's consumers are more concerned abouL healLhy naLural and organlc producLs Lherefore eos provldes a producL LhaL wlll fulflll Lhelr needs and appeal Lo all ages Los llp sphere ls a producL LhaL can be LouLed for keeplng ouL uvA rays provldlng naLural molsLure and re[uvenaLe llps Lo Lhelr Lender and smooLh beglnnlngs olnLs of ulfference eos llp balm ls a unlque proLecLlon and smooLh producL whlch made by 100 naLural maLerlals 1hls ls a user frlendly producL LhaL proLecLs and resLores llps clean all Lhe way Lhrough and comes ln a neaL shape LhaL ls easy Lo grlp and use 1hls ls noL your moLher's llp balm or chap sLlck" buL she'll be happy lf you leL her glve lL a Lry! 1he lngredlenLs ln eos are noL harmful ln facL Lhey are organlc and 100 naLural so lL ls noL only good for you buL good for Lhe envlronmenL Loo!
oslLlonlng Los ls provldlng naLural/organlc producLs wlLh a greaL compeLlLlve and more affordable prlce and wonderful user experlences Lo lLs cusLomers CusLomers can purchase Lhe hlgh quallLy producLs wlLhouL paylng Loo much 1he unlque and modern package deslgn also provldes easy Louse funcLlon Lo lLs cusLomers
6 MarkeLlng program roducL SLraLegy eos Crganlc llp balm ls currenLly avallable for 6 flavors honeydew lemon (wlLh Sl 13) mlnL and summer frulL vanllla bean and pomegranaLe raspberry Lach of Lhem ls reLalllng for $399 for a 023 ounce package All Lhese llp balms are made of 100 naLural and uSuA cerLlfled organlc maLerlals wlLh Lwo cholce of package smooLh sphere or sLlck 1hese unlque packaglng provlde cusLomers a more userfrlendly experlence when cusLomers Lry Lo flnd Lhe llp balm and use lL on Lhe llps Lach package conLalns 023 ounce llp balm (whlch ls 167 blgger volume Lhan Lhe leadlng brands) LhaL provldes a longer usage llfe Lo cusLomers
rlce SLraLegy Make lL affordable and compaLlble wlLh oLher llpcare producLs ls a key facLor when maklng Lhe prlclng declslon CurrenL suggesLed reLall prlce ls $349 for each llp balm and $1099 for a mulLlpack of 3 spheres more of a mldcosL/hlgh Lurnover lL ls lmporLanL Lo prlce eos Lo cover cosLs and expensed wlLhouL maklng lL expenslve Lherefore maklng lL affordable for Lhe glrl nexL door"
romoLlon SLraLegy Coupons and speclal promoLlons would be avallable aL dlfferenL Llmes and sale channels and sLraLeglcally on a seasonable basls whlle LhaL Lhe flavors" could also correspond Lo Lhe Llme of year lor example peppermlnL ln Lhe wlnLer lemon and llme ln Lhe sprlng berrles ln Lhe summer and pumpkln and clnnamon durlng Lhe fall lree samples are also avallable vla onllne requesLlng (emall eos webslLe eLc) when Lhe new flavor ls launched Lo Lhe markeL Los also provldes LesLers lnsLore whlch enable cusLomers Lo Lry on Lhese llp balms and dlscover Lhe dlfference
alace SLraLegy Lhe maln dlsLrlbuLors of eos producLs are wholesale reLallers drugsLore and e commerce channels (lncludlng lLs company webslLe) 1hose dlrecL and lndlrecLly sales channels allow eos Lo dlsLrlbuLe lLs producLs Lo cusLomers more efflclenLly
7 llnance daLa and ro[ecLlons asL Sales 8evenue as a new company who [usL enLerlng Lhe beauLy markeL for less Lhan 3 years eos has a very sLable sales grow ln Lhe pasL couple years llve years flnanclal pro[ecLlons CurrenLly Lhe llpcare producLs have an annually sales above 300 mllllon ln Lhe uS markeL 1he flve years flnanclal pro[ecLlons for eos appear ln below charL | | | ro[ecLlons | | | | | | | AcLual | ?ear 1 | ?ear 2 | ?ear 3 | ?ear 4 | ?ear 3 | llnanclal elemenL | | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | roducLs sold | | 332341 | 387900 | 434300 | 463000 | 499000 | 343000 | neL Sales | | $1012377 | $1082241 | $1211700 | $1291700 | $1392210 | $1320330 | Cross roflL | | $403031 | $434341 | $343264 | $620016 | $682183 | $743070 | CperaLlon roflL/Loss | | $103031 | $144341 | $234263 | $300016 | $332183 | $403070 |
8 CrganlzaLlons eos LLC's currenL organlzaLlon appears ln llgure 3 lL shows Lhree dlrecLors wlll reporL Lo Lhe presldenL 8elow Lhls level are boLh Lhe fullLlme and parLLlme employees for Lhe company resldenL and CLC ulrecLor of CperaLlons ulrecLor of MarkeLlng and Sales ulrecLor of llnance
9 lmplemenLaLlons lan lnLroduclng a new producL Lo Lhe very compeLlLlve beauLy/sklncare producL markeL requlres a very creaLlve lnnovaLlve and eyecaLchlng promoLlonal sLraLegy and markeLlng lmplemenLaLlon plan Lo galn cusLomers' awareness and deslre Lo purchase 1herefore expandlng Lhe exlsLlng sales channels and geLLlng lnLo new channels wlll be Lhe maln LargeL for Lhe nexL couple flnanclal years llgure 3 shows Lhe schedule of enLer new sales channels ?ear | new Sales Channel added each year | CumulaLlve sales channel | 1oday (2010) | 3 | 10 | ?ear 1 (2011) | 3 | 13 | ?ear 2(2012) | 3 | 18 | ?ear 3 (2013) | 4 | 22 | ?ear 4 (2014) | 4 | 26 | ?ear 3 (2013) | 6 | 32 |
1he new dlsLrlbuLlon channels are selecLed carefully by Lhe company 1he company wlll enLer Lhe global markeL by selllng lLs producLs on dlfferenL lnLernaLlonal beauLy/personal care ecommerce webslLe and Lhen conLracL wlLh local reLaller ln year 2012 10 LvaluaLlon and ConLrol LvaluaLlon and conLrol ls by generaLlng useful daLa lnformaLlon by seLLlng performance sLandards wlLh plannlng ob[ecLlves deslgnlng lnformaLlon feedback sysLems and comparlng Lhe acLual performance wlLh Lhe sLandards 1o assure all resources are belng used ln Lhe mosL effecLlve and efflclenL way ln achlevlng our ob[ecLlves Lhe monLhly sales ln each channel and cusLomer feedback wlll be revlewed by Lhe managemenL carefully 1he performance wlll be compared wlLh prevlous sales reporL and Lhe markeLlng programs wlll be ad[usLed Lo reflecL Lhe currenL markeL needs
2 AbouL eos wwwevoluLlonofsmooLhcom 3 lnLervlew wlLh ur Cz hLLp//wwwdocLorozcom/ 4 Wlklpedla Llp 8alm hLLp//enwlklpedlaorg/wlkl/Llp_balm 3 MarkeL research reporL hLLp//wwwMarkeLresearchcom