Nail Polish by

Hannah Dion

Yvonne

Dygon

Molly Valcou

r

Alena Filistov

ich

Industry OverviewBeauty Salon IndustryHealth and Beauty Department IndustryNail Care Industry Highly fragmented- personal salons near high trafficEconomic Drivers: Disposable Income, National Unemployment RateDemand Industries: Weddings, Personal Use ConsumerRevenue: $50.2BAnnual Growth: 2.6%-3.2%Segmentation: 10.2% nail services (30% of nail salon services are offered within larger salons (hair/skin care)Heavy users: Age 20-64 (most disposable income). 90% ages 35-44 account for nail services.

-Business Insights Essential, OPI.com, bisWorld (2014)

O.P.I. (Odontorium Products Inc.) is a division of Coty CorporationFull line of professional items:

nail treatments, finishing products, lotions, manicure/pedicure products, files, tools and acrylicsCorporate Social Responsibility geared towards women, and locally around Hollywood, CA:

Delete Blood CancerSusan G. Komen FoundationCity of Hope Schaeffer Family Foundation (CEO’s

foundation)

-Business Insights Essential, OPI.com, Hoovers.com

Product Overview

Brand Image: “The most-asked-for brand in the industry! With a superior range of shades and the hottest special effects and textures, OPI is the go-to brand for nail fashion. From elegant classics to eye-popping brights, OPI has your color! Formaldehyde-free”

“Professional Nail Care”Nail treatments, finishing products, lotions, manicure/pedicure products, files, tools and acrylics

Over 1,000 colors.Price: $8.75 per bottleDistribution: (Only sold through authorized channels) CVS, Walmart, Target, Kmart, Duane Reade, Kroger and H-E-B locations, Ulta, Sephora.Sales History: 2010: $80 million (When Coty obtained the OPI company)Market Share: 20%

-Moodie Report, Walmart.com, OPI.com, Bloomberg, Drug Store News

Competitors

(Mintel, IbisWorld)

Revlon Essie (L’Oreal)Image Classic, well recognized Trendy, focus on creativityStrengths Focus on R&D, product

varietyConvenience, some color variety

Market Share

2.1% 9.3%

Weaknesses Lack of scale, concentrated customer base, known for their makeup more 64 colors

No product variety, 260 Colors

Positioning Innovative Beauty Professional quality, yet whimsical

Target Audience

Women 55+ with higher income

18 to 24 yr olds

AD Budgets of OPI and Competitors

-Due to increasing trends in nail color, Ad$pender was set for a 2 year time period on the total advertising budget for OPI and its competitors…

RevlonCable TV Dollars (000) $49.2Internet Display Dollars (000) $2.3Total Dollars (000) $51.5

EssieMagazines Dollars (000) $61,665Internet Display Dollars(000) $816.7Total Dollars (000) $62,471.7

OPINetwork TV Dollars (000) $31.4Magazines Dollars (000) $53,446.2Internet Display Dollars (000) $481.2Total Dollars(000) $53,958.7

SWOT AnalysisStrengths:

Chip resistant, long lasting formula Social Corporate Responsibility

Whimsical NamesOver 1000 colors

Design: large brush, easy/strong grip top.Already in 50 different countries

Focuses on nail care

Weaknesses:Price- $3.45-$8.75 per bottle compared to

Essie $5.32-$8.45 Not available on website

Don’t have much social media integration“Salon” brand

Opportunities:Nail art is trending, always room to

grow/deliverEarned media from Beauty

Bloggers/YoutubersExpand upon “salon” to everywhere brand

Threats:Highly saturated market

Niche market (female dominantly) Disposable income/unemployment rate

(IbisWorld, OPI.com, Hoovers.com, Walmart.com)

What Makes OPI stand OUTPoints of parity:- Convenience/location- Whimsical names

Points of difference:- Salon Quality (higher income

buyers) / professional- color variety (1000+ colors)- Grip handle

OPI’s Current Positioning Strategy

Current: Celebrity Endorsements

-Includes Justin Bieber, Selena Gomez, Carrie Underwood, the Kardashian’s, and Modern Family who have their own line.-Each endorsement has their own “collection”

Consumer Market Segments

SImmons, Experian, Mintel

Booming with Confidence

Significant Singles

Flourishing Families

Suburban Style

Promising Families

Married womenpeak income Women 35-65 (White collar professions) Sophisticated

Taste.Enjoy the

nightlife, & restaurants

during week, and travel to

museums, and antique shops on

the weekends.

Singles 35-65 years old

Nightlife, robust leisure lives, Live in cities

Below average income

Body-conscious“Champagne

Tastes on Beer Budgets”

Married women with children in

their 30’s-40’s.Financially

stable/professional careers

Prefer the ease of convenience when shoppingCare about self-

image.

High income, and upscale

livesSuburban

neighborhoods30-40’s

Fashion forward who check on

new styles and trends Shop online, and big box retailers for

convenience.

Recently married, entering

workforce, & starting families.Entry-level pay, but disposable

cash to lead rich leisure lives.Like to shop; stretch their

money,(sales, factory

outlets & clearance racks.)

Outskirts of urban cities

-Experian Marketing Services

Potential Target Audience

(Experian, Mintel)

SUBURBAN

STYLE

FLOURISHING

FAMILIES

SIGNIFICANT

SINGLES

Top brands used by these

segments:Sally Hansen

38% OPI

35%Revlon

25%Essie

21%

Customer Reviews

-Amazon, Ulta

Marketing Plan: ObjectivesIncrease revenue by 6% ($4.8 million) or, increase market share by 5%, with a goal of 25% market share.

By highlighting the sophisticated value of OPI we will encourage users of other nail lacquers to switch

Primary Target Audience

-Experian Marketing Services

35-65 years oldCollege educatedModest income, but maintain urbane

lifestyles“Champagne tastes on beer budgets”Buy new fashion every season in order to

make a unique statement with their outfits. Admit that they’re price-sensitive shoppers

who go to discount and mid-market retailers like Marshalls, Macy’s, Gap and Nike.

Watch AMC, Oxygen, Style, BET and CNBC.Read NewspapersMagazines main source of Entertainment

Self, Shape, Vogue and Vanity Fair

Purchase Determinants

● Replicating salon looks

● Limited edition● Advertisements● Social Media● Kits● Celebrity

endorsements ● *Women in their

50’s buy to replace a product.

Significant Singles

Secondary Target Audience30-40 year old married women with children from 5-25 years old.Financially stable/professional careersPrefer the ease of convenience - don’t plan many trips, even if close to a mall.Care about self-image, but also spend on children.Shop through catalogs and Websites - receptive to advertising links, email.Average fans of TV, radio, newspapers and magazines30-40 year old women with high income, and upscale lives living in suburbs

Fashion forward who check on new styles and trends.Shop online, and big box retailers for convenience.

Premium TV channels like Speed, IFC, BET and TV Land. Get their news and entertainment from the Internet.

Respond to email ads, sponsored Websites and links.

Flourishing Families

Suburban Style

-Experian Marketing Services

Positioning StatementO.P.I is the professional nail polish that not only has a salon quality formula, but also offers it in every bottle of rich colors on the color

spectrum.

Perceptual Map

Communication Objectives Using AIDA

Action: Billboards will be positioned near stores to drive action to buying O.P.I products like a POP sale, and transportation offering as a reminder/ aiding in recall to buy a nail polish before you go out tonight. It will also enhance our positioning strategy by placing them in places where people go in a hurry, and will have the potential to be exposed. Desire: Social Media features on blogger’s websites will promote desire to belong to O.P.I using community, driving potential consumers towards the O.P.I brand. Interest: Magazines will generate interest by showing customers what kind of color options we provide and make consumers want to look at the ads, or go to a retailer that sells more to view more colors.Awareness: Television Advertisements will make potential consumers aware of the product and how it will take part in their daily lives, and show how stylish it is and connect with their favorite television programs. Window display in salons to raise awareness that the salons carry O.P.I. brands.We want to generate buzz by billboards as well.

5-10%20%

30%50%

Communication MixBroadcast Print Outdoor PromotionTelevision

Grey’s AnatomyCastle

Oxygen NetworkAMC Network

BET

MagazinesSelf

Shape Allure Vogue

Elle Glamour InStylePeople

NewspapersNY Times

Transportation (subways, buses,

taxis, airports)

Billboards

Urban citiesCA, FL, TX, MA, NY, IL, OH, VA

Sales promotionsSamples in Magazines

Coupons

Public relationsSponsored events

Earned media

Creative Plan: ObjectivesCreate brand preferenceMethod: focus on

brand quality throughout TV ads and

print ads. Increase exposure through

billboards.

Big IdeaThis will be accomplished by showing busy women using professional nail polish, doing tasks that would cause

other nail polish brands to chip, but not O.P.I.

Advertising Appeal and Execution StyleRational Appeal: Focusing on the qualities of the polish- sophisticated, chip-resistant, multitude of colors. Objective: AwarenessMethod: Repetition, and Location

Magazine Example 1

Magazine Example 2

Television Example

Paints nails first Looks for an outfit Washes face, and puts on makeup

Curls hair Drives to destination Shakes hand (emphasis on perfect nails)

Internet Media Examples

Paid searches on Google.Banner ads on our retailers: ie Target/Big Box

storesOnline Shopping AdvertismentsOnline newspaper advertising

Outdoor Ad ExamplesThe outskirts of urban cities, and popular cities with dense

population.

PROFESSIONAL MANICURE NOW WITH O.P.I.

chose any color any style

Promotion

Sales promotions: Coupons (Get $1.00 off of a nail polish)Samples through the magazine adsPress Releases:Earned Media targets:Get on the blogger’s lists of recommended

productsHaul videos

Media Plan: Media ObjectivesTV ad - Grey’s Anatomy

Print Ads- per issue of Vogue

Billboards- in LA

Reach 30% of 9.4 Million = 2,820,000 viewers

50% of 1,002,961 readers= 501,480 viewers

18.2% of 10,017,068 people in Los Angeles= 1,823,106 viewers

Frequency 4 times for the 2,820,000 viewers

1 time for the 501,480.5 viewers

3 times (3 billboards) for 1,823,106 viewers

GRPs 30 * 4 = 120 GRPs 50*1= 50 GRPs 18.2*3= 54.6 GRPs

Media PlanMagazines: Full Page 4 color ad in every monthly issue (12X a year) $19,297,860 Full Page 4 color ad in every monthly issue (12X a year)

Self, Shape, Allure, Vogue, Elle, Glamour, InStyle, People (Standard Rate & Data Service)

Television 30 second commercial 7 times for each network: $8,395,310

AMC, Oxygen, Style, BET and CNBC.Outdoor Advertising Transportation (ie. subway, bus, taxi, airports):

$3,024,000ie: Albuquerque, NY 7 billboards for $1,200 each for 4 weeks. ($1,200*7) =8,400 *

12 months. x 30 locations

Online Banner Advertising: Amazon.com- cost per click range ($0.45 *1,000,000 clicks) : $4,500,000. Total Budget Recommendation: $35,217,170

Promotional Schedule

Mi

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