With production underway, Angie needs to implement her plans to market and sell her YOYO Lip Gloss.
Angie used various outlets to gather information to assist with developing a marketing and advertising strategy.
Among these sources were Teen Market Profile, Packaged Facts, and Media Post Communications. Angie learned that the three major ethnic teen populations are African Americans, Asians, and Latinos. Based on this information, the YOYO characters’ personas were created. Angie also determined that popular venues for female teen shoppers are shopping malls/centers and discount stores. How will this information benefit YOYO Lip Gloss? Angie wonders whether she should coordinate in-mall events to increase awareness of her product. She also must decide which promotional and advertising approaches will offer the greatest benefits to YOYO Lip Gloss.
Angie plans to distribute her product through various channels including general merchandise stores as well as apparel and accessory stores. An independent sales force will be used to promote YOYO Lip Gloss in these types of establishments. Consumers can also purchase YOYO Lip Gloss directly through the web.
Angie is waiting for her first shipment of YOYO Lip Gloss to be loaded onto its shipping vessel before contacting potential distribution channels. This strategic decision was made due to industry giants Angie will be combating within the lip gloss sector and because she does not want to distribute a sub-par product or make a delivery commitment to her distribution channels that cannot be met. Angie wonders how this decision will impact sales of YOYO Lip Gloss. She could have marketed her product to her target stores before shipping the product to the U.S., but she felt that was too high risk a strategy. She sought the comfort of having a completed production quantity of high quality product in her possession before launching her sales efforts. Still, her decision to postpone
her marketing efforts may leave her with unsold inventory, creating excess carrying costs and thus delaying the success of YOYO Lip Gloss.
Once Angie distributes her initial product she needs to consider how she will grow her business. Is one product enough to remain competitive in the market? Angie is preparing to extend the YOYO Lip Gloss product line soon after its launch. In Phase II, YOYO Replacement Tubes will be introduced enabling consumers to refill their lip gloss without repurchasing the entire YOYO package (See Exhibit I – YOYO Replacement Tubes). Angie believes that the YOYO replacement tubes will generate additional revenue for retailers and help establish customer loyalty.
In Phase III, YOYO Light up reels as well as the next set of YOYO characters and colors will be introduced, followed by Phase IV, which will feature the YOYO Light Up Replacement Tubes. In Phase V, YOYO Lip Gloss will introduce the YOYO Wallet which will also serve as a case for the reels, tubes, and trading card stickers. In Phase VI, Angie’s product line extension plans include a modified YOYO Lip Gloss whose target market will be young adult females. This modified product will be a variation of her current lip gloss, and it will target prestige outlets such as Sephora.
Angie is also considering ideas such as theme packages which will help boost holiday sales and eventually a new product line. Developing a group of related products can help solidify Angie’s position in the market. She knows that she needs to introduce her product line extension at the right time to provide her company with more opportunity for growth. She needs to conserve her initial capital and be careful not to overextend herself. Right now, Angie remains focused on making the initial launch successful.
Often Angie wonders, “What other product line extensions are possible? What other markets can I attempt to penetrate? What types of products should I introduce? And when would be the best time to introduce related products and new product lines?”
Currently, Angie’s parents are her sole financiers. She wonders if it would be beneficial for YOYO Lip Gloss to take on additional investors to help expand her product offerings and to help finance her distribution strategies. If she does seek additional investors, who should she look for and what type of deal should she offer?
I am fortunate to have a supportive family and a sound educational background. Both have prepared me for the tasks I now face. Wonderful teachers have truly inspired me, impacted my life, and contributed to my future success.
This experience has been a journey. What once started out as a new concept salon, evident in the company’s name, Peppermints Salon, germinated into an idea that will shake up the teen cosmetic industry.
I have learned that with current technology, the whole world is your market place. Anything is possible. From your home office in New York you can buy from China and sell in Mexico. You can have salespeople all over the world and unite them under one simple online system located on your desktop.
Manufacturing in China has enabled me to hold my costs down. By doing this, I can better contribute to the economic welfare of people who have interest in my company, including end consumers.
I have learned that excellent supplier relations and open communications are essential to a healthy company. If you understand every aspect of your business, you will be free to pick and choose your suppliers when necessary.
In life, it is easy to be diverted. It’s important to stick to your vision. When I began this project, I had two jobs, and was an MBA student at St. John’s. Between full time employment, school, many hours of homework, and a social life, it is easy to get side tracked.
There were many setbacks due to the level of quality I sought. It would have been easy to accept a less-than-perfect formula, a low gauge plastic tube, a poor quality reel, and lower quality packaging. All these decisions set back my production schedule, but I insisted on a high level of quality for YOYO Lip Gloss.
There is a lot to learn within this industry, and no one spells it out for you. There are many fine lines when it comes to the FDA’s packaging and formula guidelines, importing laws and regulations, and then implementing your own standards into your product.
I am very excited about the future of YOYO Lip Gloss. Our next step will be to market the product effectively and build relationships with our future clients.
APPENDIX
Exhibit A: What is YOYO Lip Gloss?
Exhibit B: YOYO Lip Gloss Colors and Flavors
Exhibit C: Fun Interchangeable YOYO Reels
Exhibit D: YOYO Characters
Exhibit E: We Get Personal
Exhibit F: YOYO Trading Cards
Exhibit G: Quality Formula and Durability
Exhibit H: YOYO Utility Patent
Exhibit I: YOYO Replacement Tubes
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Kline and Company. Global Color Cosmetics Market Assessment. 2005.
Mediamark Research, Inc. Teen Market Profile . New York: Magazine Publishers of America, 2004.
U.S. Census Bureau. Projected Population of the United States, by Age and Sex: 2000 to 2050. March 18, 2004.
http://www.census.gov/ipc/www/usinterimproj/ (accessed April 2006).
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http://www.uspto.gov/web/offices/com/iip/patents.htm#PCTApplication (accessed 2007).