RSVP to Rio de Janeiro_black-Up Paris Expands to Brasil (MKT124 Intl Mktg Plan)

7/31/2019 RSVP to Rio de Janeiro_black-Up Paris Expands to Brasil (MKT124 Intl Mktg Plan)

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GGU / MKT124 International Marketing / Spring 2012 / Professor Dr. Mary Jean

Koontz

Fab Five International Marketing Consulting Team:

Authors, Market Research & Development: Maiah Perrier, Devin Ruppenstein, Jahnelle Robinson, Leslie Rose,and Summer Tweedell

Editor and Project Manager: S. Tweedell

RSVP to Rio de Janeiro: black|Up Paris Cosmetics expansion

An International Marketing Plan for Brasil entry
https://www.facebook.com/photo.php?fbid=396716563687960&set=a.189460697746882.60129.189447934414825&type=1


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ContentsRSVP to Rio de Janeiro: black|Up Paris Cosmetics expansion

An International Marketing Plan for Brasil entry ............................................................................... 2

Contents .......................................................................................................................................... 2

Executive Summary ....................................................................................................................... 5

Cultural Analysis ............................................................................................................................. 6

Introduction .................................................................................................................................. 6

Geography .................................................................................................................................... 6

Social Institutions ......................................................................................................................... 6

Family ....................................................................................................................................... 6

Education .................................................................................................................................. 6

Political...................................................................................................................................... 6

Business Customs ...................................................................................................................... 7

Religion and aesthetics ................................................................................................................. 7

Language ..................................................................................................................................... 7

Economic Analysis .......................................................................................................................... 8

Introduction .................................................................................................................................. 8

Population .................................................................................................................................... 8

Total.......................................................................................................................................... 8

Population growth rate .............................................................................................................. 8

Distribution of Population .......................................................................................................... 9

Population density by state ....................................................................................................... 9

Urban population ..................................................................................................................... 10

Economic statistics and activity .................................................................................................. 10

Income distribution .................................................................................................................. 11Distribution of classes ............................................................................................................ 11

International trade statistics ...................................................................................................... 12

Trends ..................................................................................................................................... 12

Trade restrictions ................................................................................................................... 12

Labor force .............................................................................................................................. 12

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An International Marketing Plan for Brasil entryBrasil Consumer Spending .......................................................................................................... 13

Media & Technology ................................................................................................................... 14

Market Audit and Competitive Market Analysis ............................................................................. 15

Introduction ............................................................................................................................... 15

Product evaluation ...................................................................................................................... 19

Market Resistance ................................................................................................................... 19

The market ................................................................................................................................ 20

Geographical region(s) ............................................................................................................ 20

Phase One Test Brasil Market ................................................................................................ 20

Phase Two Expanded Brasil Market ....................................................................................... 20

Phase Three Ecommerce & Social Media ............................................................................... 21

Phase Four projections ............................................................................................................. 21

Phase Five projections (additional expansion options) ............................................................. 21

Consumer buying habits .......................................................................................................... 21

Distribution of the product ...................................................................................................... 21

Advertising and promotion ...................................................................................................... 22

Carnival................................................................................................................................... 22

Celebrity endorsements: ......................................................................................................... 22

Fashion Weeks ........................................................................................................................ 23Product pricing strategy ......................................................................................................... 23

Compare and contrast your product and the competitions product(s) .......................................23

Competitor Analysis Table .......................................................................................................... 27

Market size ............................................................................................................................. 27

Preliminary Marketing Plan ............................................................................................................ 28

The marketing plan ..................................................................................................................... 28

Initial Product Launch Timeline ................................................................................................... 28

Post-Launch: Major Events Timeline ............................................................................................ 29

Marketing objectives ............................................................................................................... 29

Target market(s) (specific description of the market) ............................................................. 29

Five Year Projection: Expected sales 2013 2018 .................................................................... 29

Five Year Projection: Expense & Profit expectations 2013 - 2018 ............................................. 29

Market penetration and coverage ........................................................................................ 303


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An International Marketing Plan for Brasil entrySWOT Analysis ............................................................................................................................ 30

Product adaptation or modification ............................................................................................. 30

Core component ...................................................................................................................... 31

Promotion mix ............................................................................................................................ 31

Advertising .............................................................................................................................. 31

Sales promotions ..................................................................................................................... 31

Personal selling ....................................................................................................................... 31

Other promotional methods .................................................................................................... 31

Key Facebook Statistics .......................................................................................................... 32

User age distribution on Facebook in Brazil............................................................................. 32

Male/Female User Ratio on Facebook in Brazil......................................................................... 33

Distribution: From origin to destination / Channels of Distribution ............................................... 34

.................................................................................................................................................. 35

Endnotes .................................................................................................................................... 35

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Executive SummaryBlack|Up is a Parisian cosmetics company founded in 1999 by an African (Ivory Coast) makeup

artist named Lionel Durand. After studying makeup at Christian Chauveau makeup school in Paris

he thought his expertise was strong enough to work on women of colour. He soon realized that

makeup products were not adapted to black and mixed skins and there was a lack of products for

these specific women. So Lionel started to mix textures, formulas and pigments to create a

dedicated makeup line specially designed for black and mixed skins.i

Nearly 25 years later and black|Up is a global success that continues to grow; the brand is #1 in

France among women of color and it now operates more than 200 retail outlets in Europe, Africa,

and the Caribbean and its products are exclusively available online in the USA via website ii.

Due to the growing size of Brasils middle class and the expanded consumer purchasing power that

comes with it; there are numerous foreign companies seeking to take advantage of the possible

opportunities to be had by way of a successful market-entry into Brasil. Particularly for brands that

manufacture and sell cosmetics, Brasil ranks highly (in third place behind the U.S.A. and Japan) in

purchasing health / beauty products.

By conducting and analyzing the local marketplace, the targeted demographic of consumers will

primarily be reached through word of mouth, and personal (direct) sales representatives. This

method is preferred because Brasil is a high context culture, with more value placed on

relationships than business; for this reason black|Up should enter the marketplace using a

combined approach of direct personal selling and online (ecommerce) sales.

In addition to an online (ecommerce) website, black|Up should also fulfill Brasilians appetite for

Facebook and social media this is another important component of the marketing plan. Social

media is the best platform to be used to connect with as many customers as possible. A Facebook

page will increase the black|Up brand fan base and facilitate sales by allowing customers and

consultants a forum to interact with one another, share pictures, view beauty tutorials, and to

announce/conduct consumer contests.

There are significant risks and costs involved for black|Up to enter the Brasilian marketplace; the

company will operate at a loss for the first few years before regional sales can pay for the

promotional and advertising aimed at Brasil. Despite these possible negative factors, the

expenses are an investment in black|Ups future in Brasil and South America that will pay off andbecome profitable for black|Up in fifth year of Brasilian operations.

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Cultural Analysis

IntroductionBrasil is a diverse nation made up of a rich cultural and racial mix of African, Amerindian, Asian,

European and Middle Eastern ancestry. The country has the fifth largest population (economy) in

the world with approximately 198 million people iii.

GeographyBrasil is the fifth largest country in the world- roughly 8.5 million square miles - covering more than

half of all South America, home to worlds largest forest, the Amazon and is divided into five

regions; North, Northeast, Central West, Southeast, and South. The borders of Brasil touch all other

S. Am countries with the exception of Ecuador and Chileiv.

Social InstitutionsAs a collectivist society with a great focus on and value placed in the importance of the family, this

also carries over directly into business relationships.

Family

The average Brasilian household consists of 3.7 people. The average life expectancy for men is 70

and 77 for women. In traditional Brasilian society family structures consist of husband, wife and

children. Things are changing in Brasilian culture, family sizes are decreasing, divorces have risen

from .5 to .8 and there are more homes with both parents working. Women are becoming more

independent and represent about 40% of the workforce. As the middle-class grows - they are the

majority of the population at 50.4% - this segment of Brasilian consumers is fast becoming a targetcustomer for many productsv.

Education

The education system in Brasil is structured into three stages; Fundamental Education is free and

mandatory for all students aged 6-14 (this is free, and available adult students as well). The next

stage is Secondary education; last for three years, its also free but is not a mandatory requirement

for people. For students that wish to pursue higher education (college), then they must complete

secondary education, fortunately for them this education is free at public universities (even for

graduate degrees)vi. The country also has an illiteracy rate of approximately 10%, which is

considered high for this developed nation and lags behind its South American neighbors however,

this rate is has been improving in recent years. vii

Political

Similar to the U.S.A., Brasilians elect a president every 4 years and senators every 8 years; the

country is considered a federal republic and it consists of 26 states and a federal district. The 1988

constitution grants broad powers to the federal government, made up of executive, legislative, and

judicial branches. Each state is eligible for a minimum of eight seats; the largest state delegation

(Sao Paulo's) is capped at 70 seats. This system is weighted in favor of geographically large but

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An International Marketing Plan for Brasil entrysparsely populated statesviii.

Business CustomsBrasil is a high context culture, relationships are important to conducting business, and face-to-

face, oral communication is preferred over written communication. At the same time, when it

comes to business agreements, Brasilians insist on drawing up detailed legal contracts.ix

Religion and aestheticsBrasilians are predominately Roman Catholic (80 %)x and the country has a divorce rate of less

than 1%, specifically 0.26 per 1,000 peoplexi.

LanguageThe official language is Portuguese, which is spoken by 99% of the population. The language has

evolved over time from the Portuguese spoken in Portugal.

Because of Brasil's size, self-sufficiency, and relative isolation, foreign languages are not

widely spoken. English is often studied in school and increasingly in private courses. It has

replaced French as the principal second language among educated people. Because Spanish

is similar to Portuguese, most Brasilians can understand it and many can communicate in it,

although Spanish speakers usually have difficulty understanding spoken Portuguese.xii

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Economic Analysis

IntroductionThe U.S. State Department reports Brasilian President Dilma Rousseff intends to continue on with

economic policies, including sound fiscal management, inflation control, and a floating exchange

rate as established by the former president. Furthermore, according to the State department;

The Brasilian economys solid performance during the 2008 financial crisis and its strong

and early recovery, including 2010 growth of 7.5%, have contributed to the countrys

transition from a regional to a global power. Expected to grow 3.5% in 2011 and 4.0% in

2012, the economy is the worlds seventh-largest and is expected to rise to fifth within the

next several years. During the administration of former President Lula, surging exports,

economic growth, and social programs helped lift tens of millions of Brasilians out of

poverty. For the first time, a majority of Brasilians are now middle-class, and domestic

consumption has become an important driver of Brasilian growth. xiii

Population

Total

According to 2010 World Bank research, the population of Brasil is currently 194,946,470, making

it the fifth largest country in the world both by population and area. It is also home to the worlds

sixth largest city by population, Sao Paulo, which is home to 11,037,593 people.xiv

During the 1950s and 60s, the average population growth rate was at almost 3%, due to a

decreasing mortality rate and continued high fertility. Since then, the growth rate has dropped to2.5% in the 1970s, and 1.9% in the 1980s. Currently the annual population growth rate is 1.17%,

an indication of a slowed growth rate.xv

Population growth rate

[Image via: J.P. Morgan Brasil 101 - 2011 Country Handbook]

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An International Marketing Plan for Brasil entryBrasil is home to a wide array of racial types and backgrounds, including African, Portuguese,

Italian, German, Spanish, Japanese, indigenous peoples, and people of Middle Eastern descent.

According to the National Survey of Samplings of Households (Pesquisa Nacional por Amostra de

Deomicilios or PNAD), as of 2008, the makeup is as follows: 48.43% White, 43.80% multi-racial,

6.84% Black, and 0.58% Asian.

Brasils current annual live birth rate is 17.48 births per 1,000 people, with a total fertility rate of

1.9 children per woman. This fertility rate is below the worlds average, and has continued to go

down since the 1980s, where the average number of children per woman in Brasil was at 4.06. xvi

As of 2010, life expectancy was at 73 years, and while this is increasing, it is still considered low in

comparison with other countries. The age composition of the population is as follows: 0-14 years:

26.2%, 15-64 years: 67%, 65 years and older: 6.7%.xvii

Distribution of Population

The average sex ratio of Brasil is 0.98 males per female, however as the population ages overtime, the ratio of males to females fluctuates. Of those ages 65 years and older, the sex ratio is

0.74 males per female.xviii

The average population density of Brasil is 22.6 person per square kilometer, however much of the

population and economic activity is concentrated in the Southeast region. Located in the Southeast

region is Sao Paulo, the sixth most populous city in the world with a population density of 160

people per square kilometer. Twenty two percent of the countrys population lives in Sao Paulo

alone, with 40% of the population living in the Southeast area. Only 7% of the population occupies

the North.

Population density by state


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An International Marketing Plan for Brasil entryFrom the 1950s through the 1970s, an estimated 20 million people moved from rural areas to

urban areas within the country, making it the largest and most rapid population movement in its

own history. Brasil's urban population (by the official definition) grew at rates of about 5 percent

per year and accounted for 56 percent of the total population in 1970, 68 percent in 1980, and 75

percent in 1991. As of 2012, the population living in urban areas is 84%. xix

Urban population


Economic statistics and activityIn 2009, Brasils nominal GDP had reached $1.57 trillion in US dollars. At the time, Brasil was the

eighth largest country in the world in terms of GDP, and largest in Latin America. However the

country is forecasted to become the seventh largest economy by the end of 2012, surpassing Italy.

While it has experienced a slowed GDP growth rate in 2008 to the world financial crisis, it has since

recovered from a -0.6% real GDP in 2009, by 7.5% in 2010xx.

Services take up a majority of Brasils GDP at 66%, which include commerce, telecommunication,

banking, energy, and computing. Industry comprises 28% of the GDP, with production in

commercial aircraft, automobile and automobile parts, steel, and consumer durables. Agricultural

products such as soybeans, coffee, cocoa, sugarcane, and tobacco take up 6% of the countrys

GDP. xxi

In the beginning of 2011, foreign investment in Brasil reached its highest in its history at $50.4

billion dollars a 123% increase from the same period in 2010. Tourism, fishing, mining, are the

biggest attractors for investment in Brasil.

For the past several decades, Brasil has had one of the most extreme cases of inequality of wealthin the world, despite experiencing a notable increase in wealth. While unequal income distribution

tends to be higher in Latin American counties, Brasil is the highest in Latin America. As of 2008,

the richest one percent of the population has 13% of all household income. World Bank studies

show a Gini index for Brasil as of 2009 being 54.7 (0 representing perfect equality, and 100

representing perfect inequality), indicating a slow decrease from the 2001 Gini index of 59.6xxii.

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An International Marketing Plan for Brasil entryIncome distribution


This severe problem has been attributed to several factors of much debate, including the quality ofthe education system, and a regressive tax system. Some measures have been taken to address

the problem of the income inequality, such as an effort to increase minimum wage .xxiii

Brasil has been experiencing an emerging middle class, despite a high rate of inequality of income

between the richest and poorest of the population. Since 2003, the middle class indicated by Class

C (Class A being the richest and Class E being the poorest) has grown by 44% and currently

represents a majority of the Brasilian population. The classes are categorized by household

earnings per month, with Class C household income ranging from 1126 - 4854 Reals ($621 -

$2,677 US dollars).xxiv

Distribution of classes


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International trade statisticsThe Brasil government reported record-setting amounts for its total trade value of imports and

exports in the year 2010. Valued at $USD 383.5billion, this achievement includes exports valued

at $201.9B and imports 181.6B. This remarkable feat represented a phenomenal 36.1 % increase

over 2009s total valued trade of 280.7B. The exceeding value of exports versus imports produced

a favorable trade surplus of $20B which equals a positive surplus in a balance-of-paymentsxxv.

Major exports in the Brasilian economy are widely varied as they are valuable; with agriculture

playing the strongest role and representing 36% of GDPxxvi and, agriculture exports set a record in

the 2011 4Q with a $ USD 87B trade- valuexxvii.

Trends

Recently discovered natural oil reserves are projected to further improve and grow Brasils

economy as this nation develops into major worldwide oil exporter.

Trade restrictions

According to the report by KPMG, many of Brasils sectors are still highly guarded with

protectionist import taxes and this presents a challenge. For example, many Brasilians are taking

pleasure shopping trips to the U.S.A. and have now become the biggest spenders of any visiting

tourist nationals spending an average of $5,400 per person, spending a total of $5.9 billion in

2010. xxviii

Labor force

The Brasilian labor force is the fifth largest size in the world with approximately 103 million people

(based on 2010 data figures)xxix.

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[Image Via: IndexMundi website]

WSJ reported current the unemployment rate set a record-low for the month of December 2011, at

4.7% per Brasilian Institute for Geography and Statistics, or IBGE, who monitors unemployment in

six of Brasil's largest metropolitan areas, including Sao Paulo, Rio de Janeiro, Salvador, Belo

Horizonte, Recife and Porto Alegre. However, the same article cautioned this unemployment rate,

however, is not fully comparable to jobless rates in developed countries due to a large portion ofthe population is either underemployed or works informally without paying taxes, and workers not

actively seeking a job in the month before the survey don't count as unemployed under the IBGE's

methodology. The survey also does not take into account farm workersxxx.

Brasil Consumer SpendingWith the growing consumer base there has been an increase in spending. 27.4 million Brasilians

have already bought goods or services online, out of a population of 190 million. The sector

generated R$8.4 billion (US$5.2 billion) in the first half of 2011, an increase of 24% compared to

the same period in 2010, and more than the total figure for 2008 The spending reflects the

needs of Brasils new middle class.xxxi

Furthermore, Brasils most popular online buying categories are: Home appliances (13%), IT

(12%), Health/Beauty/drugs (11%), Books / magazine subscriptions (8%), and Electronics (6%). xxxii

This new trend for online purchases will probably increase as Brasilians buy more technology and

interact more on the Internet. There is some hesitancy and concern over internet security but

clearly people are becoming comfortable with this venue. Brasilians regularly take advantage of

daily deals on Brasilian websites and social networking sites like Facebook are very popular.

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An International Marketing Plan for Brasil entryBrasil has become the third largest market for cosmetics, following the US and Japan. LOreal has

been trying to take advance to this new consumer base but unfortunately has not met much

success for two primary reasons. The traditional way of conducting business is by first establishing

a relationship and for cosmetics the traditional way of selling is door-to-door. The two companies

with the majority of market share are Natura Cosmeticos with an experienced sizable sales force

and US based Avon cosmetics with an experienced door-to-door relationship based sales teamxxxiii.

The two major players who use the door-to-door method claim roughly 50% of all color cosmetics

sales and 42% of skin-care sales:

Natura Cosmticos - the market leader in beauty and personal care, has one million

salespeople across the country

Avon Products Inc. - has built up a larger market share in Brasil than L'Oral thanks to its

expertise in direct sales

Entering the Brasilian consumer beauty market and reaching successful levels of sales has proven

a challenge even for worlds largest cosmetics company, LOrealxxxiv. L'Oreal's challenge also

reflects the rising competition that global consumer-goods companies face from local rivals who

understand the tastes and peculiarities of their home markets. Even with this competition LOreal

believes they will be able to alter the buying habits of Brasilian women and draw them into retail

shops. They may have a steep uphill battle or at least a big learning curve when it comes to doing

business in Brasilxxxv.

Media & TechnologyAccording to BBCs profile, Brasil is the largest media market in South America; with thousands of

radio channels and hundreds of television channels and the latter is the most influential. The

media is controlled by conglomerates; notably Globo, a provider of television broadcasting

(including pay-tv), radio stations, and newspapers. Additionally, 76 million users are online (mainly

through internet cafes) and Brasilians are some of the worlds heaviest social media users.

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http://online.wsj.com/public/quotes/main.html?type=djn&symbol=NATU3.BRhttp://online.wsj.com/public/quotes/main.html?type=djn&symbol=AVPhttp://online.wsj.com/public/quotes/main.html?type=djn&symbol=NATU3.BRhttp://online.wsj.com/public/quotes/main.html?type=djn&symbol=AVP


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Market Audit and Competitive Market Analysis

IntroductionThe brand black|Up Paris is a French cosmetics company, originated in Paris 1999 it now has over200 independent stores in Europe, Africa, and the Caribbean and is available online to NorthAmerica (USA) consumers. Marking the companys 25th anniversary for 2014, black|Up ParisCosmetics should consider continuing their expansion further in the Americas and enter the SouthAmerican market via Brasil.

The productThe product line black|Up offers is mainly cosmetics for face, eyes, lips, along with some skin care,and application accessories (brushes). Nail and fragrance products are also available in Europeanand African markets (these item categories will also be introduced to Brasil Market).

BrandCountry ofOwnership Logo Package

DistributionChannels

black|UpParis

France IndependentRetail, Online

black| Up(USA website: www.blackupcosmetics.com)Paris

Item Description Wt. USD - Price Variety

cream-to-powder foundation A light, creamy yet full coverage compact foundation

that transforms into a silky powder on application.

.38 oz. $ 40.00 12 shades

fluid foundation A moderate coverage, natural-looking second skin

foundation that evens out the complexion.

.85 oz. $ 39.00 13 shades

two-way cake This best-selling 2-in-1 compact powder can be used asa sheer coverage foundation or a pressed powder.

.38 oz. $ 39.00 12 shades

matifying foundation Provides long-lasting matte finish, concealing

imperfections and leaves the complexion even, soft and

velvety.

.85 oz. $ 41.00 10 shades

loose powder An extremely soft, ultra-fine and silky loose powder

that can be used over any of our foundations.

.70 oz. $ 35.00 4 shades

two-way cake This best-selling 2-in-1 compact powder can be used asa sheer coverage foundation or a pressed powder.

.38 oz. $ 39.00 12 shades

matifying base The ultimate in anti-shine, Matifying Base can be used

as a makeup base for all skin types.

1.01 oz. $ 41.00 n/a

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An International Marketing Plan for Brasil entrycomplesion enhancer oil free This make up enhancer can be used under any of our

foundations to illuminate the complexion and boost

radiance

1.01 oz. $ 39.00 3 shades

sublime powder Silky shimmering pressed powder. May be used as

bronzer or finishing powder for radiant, healthy glow.

.35 oz. $ 35.00 6 shades

gold shimmering body oil Dry oil generously enriched with pearly copper

particles to give body a sparkling, iridescent, radiant

glow.

1.69 oz. $ 46.00 n/a

blush Ultra fine, sily textured blush to accentuate cheeks and

give them a natural glow

.12 oz. $ 24.00 9 shades

click pen concealer A magic wand that provides complete coverage hiding

dark circles, blemishes or imperfections.

.06 oz. $ 28.00 6 shades

intense radiance eyeshadow Unique formula in between cream and powder with

high pigments for extreme hold and radiance.

unknown $ 22.00 8 shades

duo eyeshadow Our richly textured eye shadows in bold, sophisticated,

highly complementary color pairs

2*0.05

oz.

$ 32.00 6 combos

(12 shades)

mono eyeshadow Our richly textured eye shadows with pure, highly

concentrated pigments. Discover our Five New Shades!

0.07 oz. $ 19.00 41 shades

pearl powder Concentrate of pure shimmering pigments for

incredibly intense color for eyes

0.10 oz. $ 19.00 11 shades

Mascara Up|Lash Lash Primer and Growth Booster with fortifying

properties to accelerate lash growth.

0.33 oz. $ 29.00 1 shade

volumizing and lengthening

mascara

A mascara that volumizes and lengthens lashes for a

dramatic, sensual eye make up look.

0.27 oz. $ 23.00 4 shades

vibrating lengthening mascara Our Vibrating Mascara has three pulsation speeds for

natural to an intensely full, lengthened effect.

0.27 oz. $ 37.00 2 shades

waterproof smoky kohl pencils 2-in-1 Khol Pencils to use as liner and eyeshadow.

Available in 5 intense shades.

unknown $ 18.00 5 shades

eye and lip liner Our deeply pigmented multi-use pencils draw velvety

smooth lines to outline eyes and lip contours.

0.05 oz. $ 17.00 8 shades

eyebrow pencil plus This gentle pencil helps to define your eyebrows

naturally and precisely with smooth, perfect lines.

0.03 oz. $ 19.00 2 shades

eye kolh pencil An eye pencil that gives depth to eyes with smooth,

waterproof color that stays put on eyelids.

*EXCLUSIVE TO USA MARKET*

unknown $ 18.00 1 shade

Up|Eyeliner Our liquid eyeliner pen allows you to outline the

contour of your eyes with precision and intensity.

0.02 oz. $ 25.00 4 shades

Up|Pailettes Concentrate of pure shimmering pigments for

incredibly intense color for eyes

0.10 oz. $ 19.50 4 shades

lipstick Moisturizing, pigment-rich lip color. Discover our Five

new Shades!

0.11 oz. $ 21.00 35 shades

gloss Give your lips an amazing high-shine vinyl effect with

this delicious lip gloss.

0.40 oz. $ 19.00 15 shades

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An International Marketing Plan for Brasil entrynew shimmering lipshine The lipshine collection gets a makeover for a brilliant

shiny finish and a glamorous look for lips.

0.24 oz. $ 18.00 10 shades

eye and lip liner Our deeply pigmented multi-use pencils draw velvety

smooth lines to outline eyes and lip contours.

0.05 oz. $ 17.00 8 shades

all-in-one palette - limited

edition

black|Up Cosmetics Makeup Palette for Eyes, Lips and

Cheeks. *EXCLUSIVE TO USA MARKET*

unknown $ 47.00 Multi

powder brush Large brush for face powder application unknown $ 45.00 n/a

foundation brush A Must-Have Make Up Tool unknown $ 32.00 n/a

blush brush Blush brush designed to sculpt, shade and define

cheeks

unknown $ 29.00 n/a

shader brush no1 Small eyeshadow brush for precise eye color

application

unknown $ 25.00 n/a

shader brush no2 Large eyeshadow brush to apply all-over color to

eyelids

unknown $ 22.00 n/a

shader brush no3 Shader brush to smooth and blend eye color unknown $ 22.00 n/a

small angle brush Angled brush to apply eyeliner and line eyebrows with

precision

unknown $ 22.00 n/a

sponge applicator Sponge tip for rich, precise eyeshadow color

application

unknown $ 16.00 n/a

lip brush Firm bristle lip brush to evenly smooth lip color over

lips

unknown $ 22.00 n/a

bi-phase cleansing water face

and eyes

Remove makeup and impurities with this dual

softening cleansing water. Use day and night

6.7 oz. $ 32.00 n/a

daily face purifying gel A refreshing facial gel cleanser to cleanse skin and

remove impurities. Use day & night.

3.4 oz. $ 21.00 n/a

gentle exfoliating facial cream Unveil a radiant, renewed complexion with this gentle

exfoliating facial cream. Use twice a week

3.4 oz. $ 32.00 n/a

ultra matifying rebalancing

fluid

Lightweight oil-free matifying moisturizer for

combination to oily skin with a tendency to shine. Use

day & night.

1.7 oz. $ 42.00 n/a

multi-radiance moisturizer A pearly luminescent cream that adds radiance to any

complexion. Use daily.

1.7 oz. $ 49.00 n/a

eye contour gel Reduce dark circles and puffiness with our fresh,

decongesting eye contour gel. Use daily

0.5 oz. $ 39.00 n/a

mango moisturizing body cream Moisturize even the driest, most dehydrated skin withour deliciously scented body cream. Use day & night 6.7 oz. $ 42.00 n/a

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ac p we s e: www. ac up.comen

Paris

*EXCLUSIVE TO EUROPEAN, AFRICAN MARKET*

Item Description Wt.

EURO -PriceINCL TAX USD - Conversion Variety

cream-to-powder foundation invisible coverage .38 oz. 36.50 $47.79 11 shades

fluid foundation Natural radiance .85 oz. 34.50 $45.17 13 shades

matifying foundation A perfect complexion .85 oz. 36.00 $47.14 10 shades

loose powder Extreme softness .70 oz. 32.00 $41.90 4 shades

two-way cake 2-in-1 foundation .38 oz. 34.00 $44.52 12 shades

matifying base The ultimate in anti-shine 1.01 oz. 38.00

$

49.76 1 shade

oil-free complexion enhancer Radiance booster 1.01 oz. 36.00 $47.14 3 shades

sublim powder A radiant complexion .35 oz. 32.50 $42.56 6 shades

gold shimmering body oil A sparkling skin 1.69 oz. 37.00 $48.45 1 shade

blush Healthy glow .12 oz. 22.00 $28.81 9 shades

click pen concealer A better than perfection tone! .06 oz. 25.50 $33.39 5 shades

intense radiance eyeshadowIntense Radiance - ExtremeHold - Sensational Radiance unknown 19.50

$25.53 8 shades

glitter eyeshadow Sparkling coloursunknown 16.00

$20.95 12 shades

Glitters Glam starts 0.10 oz. 19.00

$

24.88 4 shades

duo eyeshadow Intense make up2*0.05oz. 26.00

$34.04

5 combos(10 shades)

mono eyeshadow A concentrate of pigments 0.07 oz. 16.00 $20.95 36 shades

pearl powder Sparkling eyes 0.10 oz. 17.50 $22.91 11 shades

Mascara Up|Lash Power lash primer 0.33 oz. 24.00 $31.43 1 shade

volumising and lengtheningmascara Dramatic eyes 0.27 oz. 21.00

$27.50 4 shades

vibrating lengthening mascara Lengthened lashes to infinity 0.27 oz. 32.00 $41.90 2 shades

waterproof smoky kohl pencils Magnetic eyes unknown 15.00 $19.64 5 shades

eye & lip liners Traces of perfection 0.05 oz. 14.00 $18.33 8 shades

eyebrow pencilS Traces of perfection 0.03 oz. 16.00 $20.95 2 shades

Up|Eyeliner Intese eyes 0.02 oz. 23.50 $30.77 4 shades

lipsticks Gorgeous Lips 0.11 oz. 18.50 $24.22 31 shades

gloss Ultra shiny vinyl finish 0.40 oz. 16.00 $20.95 15 shades

lipshines Glamourous lips 0.24 oz. 18.00 $23.57 10 shades

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lipshine Luminous Lips 0.08 oz. 17.00 $22.26 10 shades

powder brush A must have unknown 39.50 $51.72 n/a

foundation brush A must have unknown 25.00 $32.74 n/a

blush brush Sculpt your cheeks unknown 22.00 $28.81 n/a

large eyeshadow brush Large brush no1 unknown 17.50 $22.91 n/a

pinceau estompe unknown 16.00 $20.95 n/a

eyeliner brush Perfect eyebrows unknown 15.00 $19.64 n/a

pinceau mousse A must have unknown 12.00 $15.71 n/a

lip brush Precision unknown 16.00 $20.95 n/a

sponge brush An essentialunknown 3.50

$4.58 n/a

tailles crayons An essentialunknown 3.50

$4.58 n/a

nails varnish Perfect nails 0.25 oz. 14.00 $18.33 10 shades

3-in-1 hardener Protective base 0.25 oz. 14.00 $18.33 n/a

french manicure kit Get professional3*0.25oz. 25.00

$32.74 1 combo

cleansing water Face & Eyes 6.7 oz. 28.00 $36.66 n/a

daily face purifying gel Operation Oxygen! 3.4 oz. 23.50 $30.77 n/a

gentle exfoliating facial cream Renew your skin! 3.4 oz. 27.00 $35.35 n/a

anti-dart spot brighteningserum Effective what else? 1.7 oz. 62.00

$81.18 n/a

ultra matifying rebalancing fluid Immediate absorbent effect! 1.7 oz. 39.50 $51.72 n/a

eye contour gelGuaranteed decongestanteffect! 0.5 oz. 35.00

$45.83 n/a

mango moisturizing body cream A sensual skin 6.7 oz. 39.00 $51.07 n/a

hydration generator fluidIntense moisturizationwithout shiny effects

unknown 46.50

$60.89 n/a

ultra-exfoliating cream withmicro-crystals

High-performance cream forimperfection-prone skin 3.4 oz. 45.00

$58.92 n/a

black|Up - the fragrancePrecious, captivating,sensual 1.69 oz. 67.00

$87.73

Eau deParfum

Product evaluation

Market Resistance

Major resistances to product acceptance could be in the high sophistication and glamorous look of

black|Up. Both Avon and Natura are focused on a natural, wholesome image. Avon is a little more

glamorous but nowhere near the glamour and sophistication of black|Up, which offers an ultra-

glam, sleek and professional look. There is a niche market that black|Up can serve in the direct

sales market; where its competitors lack that sophisticated edge, may allow black|Up to capture

an unmet need with its glamorous, make-up artist quality cosmetics line that is not currently

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An International Marketing Plan for Brasil entryavailable door-to-door in the Brasilian marketplace.

The marketAccording to new research titled Cosmetics and Personal Care Market in Brasil, published May

2011, the Brasilian cosmetics and personal care sector is expected to witness noteworthy growth

rate in the near future owing to the rising consumer spending and product availability. The

industry holds promising growth prospects for both existing as well as new playersxxxvi.

Geographical region(s)

Phase One Test Brasil Market

By mid 2013; mid-size Brasilian cities will be used to test various aspects of the product, the

initial availability of black|Up will be limited to restricted markets to focus on corrective

actions and product adaptations needed in the marketing mix before expanding further into

Brasil.

o Makeup formulation for southern hemisphere as well as needs specific for North and

South Brasil. Packaging design, logo is subject to change and experimentation. Get

customer feedback on product name, offerings, pricing, and color (selection).

o The brands name in the UK marketplace was perceived with negativity by somexxxvii, it is

important to be recognize the possibility exists in other geographical as black|Up

expands into new areas including Brasil, and for this reason its retail name may need to

be modified and repackaged as more acceptable choice like: Brasils black|Up or

Brasil|Up or black|Up Brasil

Para A state located in the northern region of Brazil, it is the 11th largest state in Braziland its capital is Belem. The population is close to 1.4 million people with nearly 70% ofits inhabitants identifying as Brown (multi-racial) and another 6% Black. Para has beenselected because Its Service sector is the largest component of its overall GDP at 40.9%.Para will also host games for the 2014 FIFA World Cup in Belem at the MangueiraoStadium.xxxviii

Rio Grande do Sul The southernmost state in Brazil (bordering on Uruguay), is the 10th

largest state and like Para has a population of 1.4 million. It is one of the most

prosperous Brasilian states with both of its industrial and service sectors contributing

more than 40% each to the states GDP. Unlike Para, over 80% of this states population

identifies as White, with Brown representing nearly 14%, and another near 5% areBlack.xxxix

Phase Two Expanded Brasil Market

Move into larger states and cities like Rio de Janiero and Sao Paulo (the second and first

largest, most populous states)

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An International Marketing Plan for Brasil entryAdvertising and promotion

Black|Up should develop advertising campaigns and participate in traditional Brasilian celebrations

and events like Carnival and Sao Paulo Fashion Week (SPFW). Employing popular Brasilian women

celebrities to endorse the black|Up line is also recommended.

Carnival

Brazilian Carnival is by far the countrys most important cultural event and highly recognizableby the world, black|Up should participate in the event and develop/promote an ad campaign tofavorably align the brand in the Brasilian marketplace alongside this celebrated national eventwhich presents an annual opportunity to promote in February.

Since this event is so well known there is a great deal of international media and presscoverage that black|Up could take advantage of participation in Carnival as a unique marketingopportunity for its brand in Brazil.

Option 1: Black|Ups own Carnival float (costs about $200,000), the float would showcase

different makeup artists, one of the top Samba schools (dancers) made-up in our productson the float.

Option 2: Black|Up could sponsor a top Samba schools float performance artists so artfulthey are known as the human sculptures of the Carnival paradexlii black|Up would cover theSamba schools float cost ($200,000) and still provide make up for the participants (sambaperformers).

Additionally, another important component will be a Facebook contest for a winner(consumer) to win a complete offering of black|Up entire product line (retail value ) and aninvitation to make an appearance on black|Up .

Estimated total budget for Carnival parade: $300,000

Float - $200,000xliii

Make-up artist hourly rate for 100 make-up artists ($30-$50 per hour) over 20-hoursof work - $80,000

All make-up is donated (tax deductible) by BlackUp for our Brazil Up line Samba school provides own costumes - $0 Other incidental charges $20,000

Celebrity endorsements:

Find one or more model or celebrities Brasilian women for brand promotion and

advertisements.

Model, Emanuela de Paula

Brazils most successful black model and the first to grace the cover of Brasil Vogue in

December 2011 and it is reported Emanuela earned more than $US 2.5 million in 2009 xliv. If

she is available and willing to endorse the make-up then black|Up should negotiate and sign

a one-year contract. A lucrative and enticing offer is recommended of $ US 250K to secure

her promotion for the brand (if she is contractually available).

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An International Marketing Plan for Brasil entryCelebrity endorsement: Singer Preta Gil

Popular singer Preta Gil is a famous, multiracial beauty and Rio de Janeiro native, she is an

excellent spokesperson for black|Up. She is also the daughter of famous Brasilian

singer/songwriter Gilberto Gilxlv. Given Pretas significant popularity, it is recommended to

offer her $100K for one year of promotional work.

Celebrity endorsement: Singer/Actress Negra Li

Afro-Brasilian beauty Negra Li is a rising star; she has produced one album, Negra Livre

released in 2006, she was the lead character in the well-received film Anotniaxlvi, and also

sang on remixed version of rapper Akons song Beautiful in 2009xlvii. Currently, Negra Li is

working on her second CD, Tudo de Nuvo for a 2012 releasexlviii. Although Negra Li is lesser

known than Preta Gil, she is still an emerging Brasilian talent and it is also recommended to

offer her $100K.

Fashion Weeks

So Paulo Fashion Week is the most important fashion event in all of Latin America. It is a seriesof fashion related events, held over a week at Ibirapuera Park in So Paulo, and takes place

twice a year: once in January for the Fall collection, and once in June for the spring collection. It

is widely recognized as the fifth fashion week, after New York, Milan, Paris, and Londonxlix. The

expected attendance of the last edition, Fall 2011, which featured 29 shows over the span of 6

days, was 120 thousand peoplel.

The beauty aspect of fashion week hair and make-up receives just as much media coverage

as the apparel itself. It is common to see a make-up artists name, team, or cosmetic brand

name credited in photos taken backstage or on the catwalk during fashion shows, especially

close-up photos of the models faces. The proposal for Black|Up to provide the products used

for some of the shows provides a great opportunity to both promote our brand name to viewers,

and establish a relationship with make-up professionals. With a fairly recent measure put in

place to ensure at least 10 percent of all models to be black or indigenous li, we are confident

that our line of products, which specialize in the wide variety of skin colors, will impress.

Product pricing strategy

Pricing in the Brazilian market will remain consistent with current profit margins in all of black|Upsexisting global marketplaces.

Customary markups Customary markup for cosmetics products on average is a between60% -80%, with an average of 78% for premium brandslii.

Types of discounts available Volume discounts are unavailable to individual retail marketconsumers.

Compare and contrast your product and the competitions product(s)

Avon

Avon Products, Inc. (Avon) was founded in 1886 and has grown to become the world's largest

direct seller of beauty and beauty-related products, with more than $11 billion in annual revenue in

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An International Marketing Plan for Brasil entry2011. Headquartered in New York City, where the company was founded, Avon markets its

products to women in more than 100 countries through approximately 6.4 million active

independent Sales Representatives in regions around the world. In 2010, these regions included

Latin America; North America; Central and Eastern Europe; Western Europe, Middle East and

Africa; Asia Pacific; and China. The Latin America region makes up the majority of Avons sales;

$5,116 million in 2011 and in second place in North America with less than half as much volume

with a total of $2,110 million in sales revenue.liii

Avon maintains direct-sales operations in 64 countries and territories. The company also conducts

business through distribution partners and licensees to drive growth in emerging and developed

markets, distributing products in 41 additional countries and territories through these secondary

channels. liv

Avon's core beauty products and related brands, such asAvon Color,ANEW, Skin-So-Soft,

Advance Techniques,Avon Naturals, and mark., represent 71 percent of the company's business.

Also, Avon offers a growing line of fashion, jewelry, accessories, home and children's products. lv

CotyFragrance

USA based company, Coty Fragrance is making moves to enter the Brazilian market in a big way;

they made an unsolicited $10 billion bid to buy Avon, specifically to get access to their lucrative

and well-established South American sales networklvi. Avon turned down this offer Avons

position was it was undervalued although denied, this action by Coty is of significant importance;

it shows the high level of competition nature and desirable marketplace that Brazils consumers

offer to the cosmetics industry.

Natura Cosmeticos

Natura Cosmeticos is Brasils number two cosmetics company, second behind Avon. Founded in1969 by Antonio Luiz da Cunha Seabra in Sao Paulo. Seabrea left his job position as an economistwith Remington Shavers to open a luxury boutique selling natural creams and lotions. For fiveyears he attempted to make success of his business through this storefront with a staff of foursalespeople.

In 1974, Natura abandoned retailing in favor of direct sales by door-to-door salespeople workingon commission. During this period the company developed a network of 2,000 salespeople andraised its annual sales to $5 million (Reference for Business website). Seabrea found that Naturawas much better able to anticipate customer behavior, determine market tends and sell (all itsproducts) through a direct sales model. But in 1986 Natura once again tried its hand at retailing

but after losing $2 million the idea was abandoned for good.

Because of these core beliefs the median salary of Natura employees was 16 times higher than thenational average for the same position --the lowest at five times the minimum level. Today thecompany has grown through expansions with Mamae E Bebe and Ekos (an all locally sourcedproducts line mainly devised from plants in Brasils tropical forests) and acquisitions like FloraMedicinal (a century old flower and plant-based company).

In its initial public offering Natura became the first initial public offering of stock by a Brasilian24


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An International Marketing Plan for Brasil entrycompany in more than two years, selling $240.9 million worth of shares, or 22 percent of totalequity, on the Borsa de Valores de Sao Paulo. The company announced an impressive net profit ofBRL 300.41 million ($102.5 million) in 2004 (compared with BRL 65.16 million, or $21.16 million in2003) on net income of BRL 1.84 billion ($627.99 million). Gross sales, before deducting forcommissions, came to BRL 2.46 billion, or $839.59 million. It held a 19 percent share of thecosmetics, fragrance, and toiletries market in Brasil, second only to Avon. lvii

Natura Cosmetics sells both door-to-door and online. It has a very sophisticated website, elegant

in appearance, customer friendly and inviting. The theme is natural, clean and healthy. The

colors used in the web pages matches the packaging with is also very colorful, clean and bright. A

lot of natural tones along with greens, red and other earth colors are used throughout. The pages

show young women, mothers and families. It appears to be targeting the average middle class

woman. The overall feeling is that of clean, wholesome family life. It is not overly sophisticated or

complex in its appearance or messaging very similar to the marketing message of its main

competitor Avon.

Their marketing places a great deal of emphasis on being environmentally friendly by reducing

their carbon footprint. Natura Cosmeticos is continually working to increase the recycled content

of its packaging. The company is increasing the share of refills per items sold, with the goal of

further reducing the impact of packaging. Natura Cosmeticos has also made a commitment to

become carbon neutral. lviii

There are several specialized product lines for mother and babies, all natural (locally sourced) andanti-aging wrinkle-reducing regimens.

Price points for the makeup line primarily lipsticks, eye liners to face powders. : Lipstick prices at 14.90 BRL (Brasilian Real) or about 8.20 USD US Dollar Lip gloss 16.90 BRL or 9.31 USD Super shine lip gloss in a tube is 9.90 BRL or 5.45 USD Bronze mat face powder in compact 17.90 BRL or 9.86 USD

Duo Shadow and eyeliner were both 10.90 BRL or 6.00 USD

LOreal

Cosmetics, skin care, hair care, hair color. LOreal pricing compares to other brands in Brasil

consisting of regular and luxury lines to be attainable by all social classes an Brasil. Where they do

not compare to leading door-to-door companies in Brasil such as Natura (leading in Brasil) is that

Natura offers a payment plan for their products.

LOreal Chairman and CEO Jean-Paul Agon feels that as Brasil develops as a country, their retail

presence of self-service will as well emerge. LOreal chooses to continue with self-service

placement of their products in retail stores versus the popular cosmetic shopping habits of

Brasilian women (door-to-door personalized sales).

LOreal uses advertising throughout newspapers and television to promote their brand. As well,

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An International Marketing Plan for Brasil entrythey use celebrity appearances in their advertising to gain popular demand.

O Boticario

O Boticrio was founded in 1977 as a small prescription drugstore in the city of Curitiba in southern

Brasil, and is now the world's largest cosmetics and perfumery franchise in the world. O Boticriohas 2,114 stores in Brasil alone, as well as stores in Portugal, Mexico, Bolivia, Peru, Paraguay, and

the USA. In addition, there are 438 points of sale in Japan, and an outlet in Australialix. In Brasil, it is

the second biggest cosmetics company next to Natura, and has the company has been

experiencing a 20-25% growth every year since 1997lx.

A subsidiary of Grupo Boticriolxi, O Boticrio offers products in the following categories: makeup,

perfume and colognes, body care, facial care, sun care, deodorants, soaps and shampoos. The

company is well-known for being environmentally conscious in the way they conduct business.

They have founded their own environmental protection foundation, "Fundao O Boticrio de

Proteo Natureza" (O Boticrio Nature Protection Foundation), and other various social

responsibility programs. This awareness for nature is also reflected in their products, as natural

Amazonian plants and extracts are among the main active ingredients in most of their products.

They also do not test on animals, and use biodegradable and recyclable packaginglxii.

The pricing of O Boticrio's cosmetic products vary, from R$15.99 (about $8 US dollars) for

corrective concealer, to R$69.99 (about $38 US dollars) for foundationlxiii.

O Boticrio uses online campaigns promotional campaignslxiv, outdoor adslxv, and magazine ads as

part of the company's advertising and promotional strategy. In addition to traditional print

advertisements, the company recently gained attention by utilizing interactive marketing through

print ads. These ads allowed a reader to activate their mobile device to view videos of makeup

tutorials using O Boticrio productslxvi.

Sacks Sephora

French luxury goods company Louis Vuitton Moet Hennessy (LVMH) purchases Brasils major online

retailer Sacks in 2010, to expand LVMHs popular Sephora brand into that marketplacelxvii. Sacks

Sephora is unique and unlike other competitors because this is a website that carries

approximately 300 different brands and more than 10,000 products lxviii. Although Sephora

represents a competitor to black|Up in the Brasil beauty market, there is also the possibility of

partnering with them as well. This move would increase black|Ups availability via another e-

commerce channel (in addition to developing its own regional website for online sales).

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Competitor Analysis Table

Brand

Country of

Ownership Logo Packaging Distribution Channels

Avon USA Personal sales, Online

Natura

Cosmeticos

Brasil Personal sales, Online

O Boticario Brasil Online

LOreal France Mass-retail stores,

Professionals, Online

SacksSephora(specific to

Brasil)

France(LVMH is

parent company) Online

Market size

The Brasilian marketplace for beauty products and cosmetics has ranked for years as the third

largest in the globe with a value worth $28 billion dollars lxix and represent 8.6% of the global

market for cosmetics, toiletries, and perfumeslxx.

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Preliminary Marketing PlanEntering the Brasilian marketplace will take significant investments and new business practices forblack|Up Paris to successfully adapt to, such as personal direct selling. However, once black|Uphas successfully gained entry into this multi-billion dollar value customer marketplace the ROI willbe achieved within the first five years of doing business in the country.

The marketing planIntroduce black|Up product lines to selected Brasil regions; (cities within target states) andestablish a presence in the lucrative Brasilian beauty market.

Initial Product Launch TimelineTargeting launch in midyear 2013 will give black|Up enough time to make adjustments to theproduct before a wider attempt and greater door-to-door sales territory and a newly unveiled

website designed for e-commerce transactions.

2012 2013

~ Find & hire consultants and "middlemen" for Brasil

market

~ Secure & hire celebrity spoke models to promote

brand

~ Hire & train beauty ambassadoras (door-to door

salesforce) of college Students, Service & professional

employees

~ Introduce b|U to market - PHASE 1 *Test/Limited*

~ Introduce b|U to market - PHASE 2 *Expansion*

~ Initial rollout Facebook, website

A successful trial launch of black|Up Cosmetics in 2013 is required and essential to create themaximum impact for year of 2014. 2014 is significant because its the 25th anniversary of black|Up Paris Cosmetics company. As part of a global celebration to mark this achievement, black|Upshould make an extensive marketing push in 2014 by participating in and promoting a number ofimportant Brasilian events;

Kick off the year in January with three Fashion Week in Brasil; this is actually an opportunityoccurring a total of six times per year, each in separate events: there are four shows in Riode Janeiro and two in Sao Paulolxxi.

o In January, there are two events in Rio de Janeiro: Fashion Rio Fall/Winter in Rio de Janeiro andSenac-Rio Fashion Business Fall/Winter along with the first Sao Paulo Fashion Week (SPFW),

originally founded Morumbi Fashion Brasil in 1996, it became SPFW in 2001lxxii.

o Returning in May, Fashion Rio Spring/Summer and Senac-Rio Fashion Business Spring/Summer

o In June, Sao Paulo Fashion Week (SPFW) returns a Spring/Summer show

Carnival is a festival and parade held in February of each yearlxxiii

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An International Marketing Plan for Brasil entry From June 12 - July 13, the FIFA World Soccer Cup is coming to Brazil, and represents a one-

time opportunity over the course of numerous soccer sporting matcheslxxiv

Depending on the success of black|Up in the marketplace, annual events such as Carnival andFashion Week(s) will be repeated in subsequent years 2015 1018.

Another special event opportunity occurs in 2016; the Summer Olympic Games will also come toBrasil for the first time, not only in the history of Brasil but for South America!lxxv

Post-Launch: Major Events Timeline

2014 2015 2016 2017 2018

Jan. Fashion Weeks

Feb. 28 - March 4,

Carnival

FIFA World Cup

May/Jun Fashion

Weeks

Jan. Fashion Weeks

Feb. 13 - Feb. 17

Carnival,

Fashion Weeks

Jan. Fashion Weeks

Feb. 5 - Feb. 9

Carnival,

Fashion Weeks

Olympics Games

Jan. Fashion Weeks

Feb. 24 - Feb. 28

Carnival,

Fashion Weeks

Jan. Fashion Weeks

Feb. 9 - Feb. 13

Carnival

Fashion Weeks

Since Brasil is located in the Southern hemisphere, it has a seasonal weather pattern that is

opposite of the northern hemispherelxxvi.

Marketing objectives

An aggressive growth rate of doubled annually sales is projected (through combined personalselling and ecommerce transactions) and ROI on high-profile advertising/promotionalcampaigns.

Target market(s) (specific description of the market)

Our target demographic is young women; 18-24 and 25-29 and are college students andworkers in the service industries who enjoy wearing glamorous makeup. Any/all Brasilianwomen are potential customers if they like to purchase and wear glamorous, high-end and/orprofessional makeup-artist quality cosmetics. Although black|Up was originally a productdesigned for women of color, it has expanded and embraces women of all races, ethnicities.

Five Year Projection: Expected sales 2013 2018

Year 2013 2014 2015 2016 2017 2018

Personal Sales 100,000 200,000 500,000 1,000,000 2,000,000 4,000,000 8,000,000

Ecommerce 0 50,000 1,000,000 2,000,000 4,000,000 8,000,000 16,000,000

Total Sales 100,000 - 250,000* 1,500,000 3,000,000 6,000,000 12,000,000 24,000,000

*Introduce product to Brasil market in by June 2013 (if not sooner)

Five Year Projection: Expense & Profit expectations 2013 - 2018

Year 2013 2014 2015 2016 2017 2018

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Consultant fees 500,000 500,000 250,000 250,000 250,000 100,000

Regional(staff, website)

250,000 500,000 500,000 500,000 500,000 500,000

Advertising(TV, Google, Facebook)

500,000 1,000,000 1 ,000,000 1,000,000 1,000,000 500,000

Sales Promotion(brochures, catalogs, samples)

1,000,000 1,500,000 1,500,000 2,000,000 2,500,000 2,500,000

Total Expenses 2,250,000 3,500,000 3,000,000 3,750,000 4,250,000 3,600,000

Profit(Sales Total Expenses)

- 2,000,000 - 2,000,000 0 2,250,000 7,750,000 20,400,000

Market penetration and coverage

Given the experimental nature for black|Ups entry into direct selling; it is recommended annualreassessment of personal selling strategies is undergone. The total numbers of consultantsemployed and geographic regions targeted may be retracted or expanded as determined bymarket share and operating environment per annual review.

SWOT AnalysisStrengths black|Up is excelling in the counter sales in its home market and already experiencing

a successful expansion in the U.S. marketplace via a strictly e-commerce platform.

Weaknesses black|Up is attempting to acculturate and adapt to a new business model via direct

door-to-door sales but is relatively unknown.

Opportunities Create a new black|Up website www.blackupBrasil.com, possible 2nd ecommerce

entry if a wholesale/retailer partnership with Sephora can be established (regardless, Sephora is a

significant competitive threat in marketplace).

Threats Ultra competitive environment saturated with major established players and growing

Brasil economy is attracting many new entrants; this emerging competition is aggressively

pursuing marketshare.

Product adaptation or modification

Similar to black|Ups other regional approaches; Brasil will also be promoted as its owndistinct area. An independent ecommerce website www.blackupBrasil.com should be madeavailable in Portuguese languages and a dedicated Facebook page for black|Up Brasil.

Create specific color name schemes; currently all products are referred to by a productnumber and not an identifying name to associate with a particular makeup color. Addressthis issue by the following:

o Internal black|Up marketing staff and/or consulting firm will determine names

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An International Marketing Plan for Brasil entryo Consumer/customer input and feedback, consider a contest promotion

Core component

Personal selling through black|Up beauty consultants will compete with Avon, and Natura

Costmeticos via direct selling methods as preferred in the Brasilian marketplace.

Bblack|Ups independent sales force will earn a percentage based commission (starting at %10 -%20) for all sales revenue generated, it will provide the main source of wages for beautyconsultants, however additionally there will also be assorted bonuses; consultants will be placed ona point system whereby the sellers will earn points alongside commission; the points may beaccumulated and then used to redeem for rewards (gift certificates).

Sales goals by value (or volume) will also be set at weekly, monthly, quarterly, and annual targetsto guide the consultants and give them incentives. Achieving specific goals will earn additionalcash bonuses for the consultants (along with commission and points). Achieving three consecutivemonths of targest will increase commission to 15%, and two quarterly targets reached will increasecommission percentage for a

For consultants that can achieve their annual targets will earn 25% commission and will beawarded a trip to Paris to visit black|Ups offices, stores, and staff in France and enjoy a tripabroad.

Promotion mix

Advertising

Objectives Build brand awareness for black|Up through word-of mouth and Facebook.Will also pay for ads on Facebook, Google and mobile websites

Media mix Facebook, Google, Mobile

Message glam|Up with black|Up!

Costs Will budget an average of $1M annually for the first five years.

Sales promotions

Objectives Offer valuable and enticing promotional offers to drive up sales and allowcustomers to try before they buy

Premiums Sales brochures and catalogs for beauty consultants to pass out and give topossible customers and samples (trial sizes) of various products

Costs Will budget an average of $2M per year for the first five years.

Personal selling

A major, new component for black|Up is the introduction of personal selling model. This is anattempt to acculturate to the traditional methods in Brasilian marketplace and adapting to theirpreferred style of buying and selling cosmetics.

Other promotional methods

Direct email customer newsletter (available for customer sign-up through ecommercewebsite; www.blackupBrasil.com)

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An International Marketing Plan for Brasil entry Facebook fan page dedicated specifically for Brasil community to engage local consumers

o Interact with fans and beauty consultants and black|Up customers by encouragingphoto submissions, makeup tutorials, and Brasil cultural events

Consumer contests

o Consumers could determine and submit their suggestions for makeup color names.Results can be chosen by black|Up but the top picks can be voted onward to a finalround for fan choosing (Brasilian consumers) via Facebook.

Key Facebook Statistics

Facebook monitoring may be helpful to improve business and social media marketing strategy in

every country. Currently, there are more than 46,000,000 million users in Brasil and this is an

impressive milestone. Previously Brasil trailed behind India in the #3 position for Facebook users,

but has recently overtaken the # 2 ranking among countries and is only behind the U.S.A. in total

number of userslxxvii.

User age distribution on Facebook in Brazil

[Image via: Socialbakers.com]

The largest age group is currently 18 - 24 with total of 14,508,992 users, followed by the users inthe age of25 - 34.

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An International Marketing Plan for Brasil entryMale/Female User Ratio on Facebook in Brazil

[Image via: Socialbakers.com]

There are 46% male users and 54% female users in Brazil, compared to 73% and 27% inIndia and 59% and 41% in Indonesia .lxxviii

As of April, 24, 2012 these are the various number of Facebook Likes for important Brasil, black|

Up, and competition

Category Page Name

Fan

Likes Joined FB Facebook Link

Black|Up

(B|U)

black Up

paris

9,488 Sep. 22,

09

https://www.facebook.com/pages/black-Up-paris/138507287210

B|U black|Up

Cosmetics

Caribbean

1,510 July 5, 11 https://www.facebook.com/pages/blackUp-Cosmetics-

Caribbean/215543368487158

B|U Black Up

Cosmetics

56,780 Jan. 12, 11 https://www.facebook.com/blackupcosmetics

B|U Black Up

Brasil

100,00

0

2013 www.facebook.com/blackupbrasil

Brasil Facebook

Brasil

4.4M May 21,

10

https://www.facebook.com/FacebookBrasil

Competito LOreal Paris 3.3M Oct. 8, 10 https://www.facebook.com/LOrealParisBrasil

33
http://www.socialbakers.com/facebook-statistics/indiahttp://www.socialbakers.com/facebook-statistics/indonesiahttps://www.facebook.com/pages/black-Up-paris/138507287210https://www.facebook.com/pages/black-Up-paris/138507287210https://www.facebook.com/pages/blackUp-Cosmetics-Caribbean/215543368487158https://www.facebook.com/pages/blackUp-Cosmetics-Caribbean/215543368487158https://www.facebook.com/blackupcosmeticshttp://www.facebook.com/blackupbrasilhttps://www.facebook.com/FacebookBrasilhttps://www.facebook.com/LOrealParisBrasilhttp://www.socialbakers.com/facebook-statistics/indiahttp://www.socialbakers.com/facebook-statistics/indonesiahttps://www.facebook.com/pages/black-Up-paris/138507287210https://www.facebook.com/pages/black-Up-paris/138507287210https://www.facebook.com/pages/blackUp-Cosmetics-Caribbean/215543368487158https://www.facebook.com/pages/blackUp-Cosmetics-Caribbean/215543368487158https://www.facebook.com/blackupcosmeticshttp://www.facebook.com/blackupbrasilhttps://www.facebook.com/FacebookBrasilhttps://www.facebook.com/LOrealParisBrasil


34/38


An International Marketing Plan for Brasil entryr Brasil

Competito

r

Avon Brasil 52,899 Feb. 18,

10

https://www.facebook.com/avonbr

Competito

r

Natura

Cosmeticos

271k May 23,

11

https://www.facebook.com/Natura

Competito

r

O Boticario 655k Jan 2011 https://www.facebook.com/oboticario

Competito

r

O Boticario 222K Jan 2011 https://www.facebook.com/OBoticarioCapricho

Competito

r

Sephora

Brasil

248K Jan 2011 https://www.facebook.com/SephoraBrasil

Model Emanuela dePaula

15,529 April 14,10

https://www.facebook.com/emanueladepaula

Pop singer Preta Gil 77,534 Oct. 26,

10

https://www.facebook.com/pretagiloficial

Singer/Act

ress

Negra Li 155 n/a https://www.facebook.com/pages/Negra-

Li/104478012936374

Album Negra

Livre by

Negra Li

224 n/a https://www.facebook.com/pages/Negra-

Livre/112186978797394

Movie Antonia

starring

Negra Li

9 n/a https://www.facebook.com/pages/Ant

%C3%B4nia/109224875761851

Distribution: From origin to destination / Channels of DistributionFor transportation and import into the Brasil market use CSAV; a Chilean ocean shipping provider

(largest in Latin America)lxxix, they provide dedicated weekly service from No. Europe to So.

America. Black|Up can take advantage of the frequency and export cosmetics from Le Havre,

France to southern Brasil ports Santos and Rio de Janiero, and centrally located Salvadorlxxx.

Panalpina is a great choice for a total supply chain solution provider; they have a global presencefound on six continents and are recommended for their vast product (service) offerings including;

air/ocean freight forwarding, warehousing, and distributionlxxxi. Black|Up Cosmetics needs a full-

service provider to manage its product inventory in Brasil. Panalpina has its Brasilian headquarter

office located in Sao Paulo overseeing a network of 16 offices throughout the country; this level of

local representation will benefit black|Ups expansion plans for the various states and regions of

the arealxxxii.

34
https://www.facebook.com/avonbrhttps://www.facebook.com/Naturahttps://www.facebook.com/oboticariohttps://www.facebook.com/OBoticarioCaprichohttps://www.facebook.com/SephoraBrasilhttps://www.facebook.com/emanueladepaulahttps://www.facebook.com/pretagiloficialhttps://www.facebook.com/pages/Negra-Li/104478012936374https://www.facebook.com/pages/Negra-Li/104478012936374https://www.facebook.com/pages/Negra-Livre/112186978797394https://www.facebook.com/pages/Negra-Livre/112186978797394https://www.facebook.com/pages/Ant%C3%B4nia/109224875761851https://www.facebook.com/pages/Ant%C3%B4nia/109224875761851https://www.facebook.com/avonbrhttps://www.facebook.com/Naturahttps://www.facebook.com/oboticariohttps://www.facebook.com/OBoticarioCaprichohttps://www.facebook.com/SephoraBrasilhttps://www.facebook.com/emanueladepaulahttps://www.facebook.com/pretagiloficialhttps://www.facebook.com/pages/Negra-Li/104478012936374https://www.facebook.com/pages/Negra-Li/104478012936374https://www.facebook.com/pages/Negra-Livre/112186978797394https://www.facebook.com/pages/Negra-Livre/112186978797394https://www.facebook.com/pages/Ant%C3%B4nia/109224875761851https://www.facebook.com/pages/Ant%C3%B4nia/109224875761851


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Endnotes

35


36/38

iParlour Magazine "Inside Frances black|Up Cosmetic BrandOct. 6,2011" http://parlourmagazine.com/2011/10/makeup-black-women-blackup/iiblack|Up (French website) Home > Brand http://www.blackup.com/en/content/12-blackup-brand-iii Communicaid Doing Business in Brasil, http://www.communicaid.com/access/pdf/index.phpiv KPMG Developing a Market Entry Strategy for Brasil,http://www.kpmg.de/docs/Folder_Market_Entry_ing-Final.pdfv J.P. Morgan, Brasil 101 - 2011 Country Handbook, 2011, p.11,http://www.jpmorgan.com/cm/BlobServer/Brasil_101_the_2011_country_handbook.pdf?blobkey=id&blobnocache=true&blobwhere=1158631510475&blobheader=application%2Fpdf&blobcol=urldata&blobtable=MungoBlobsvi Wikipedia Education in Brasil, http://en.wikipedia.org/wiki/Education_in_Brasilvii ISEP website, Country Handbook Educationhttp://www.isep.org/students/placed/handbook_education.asp?country=7viii U.S. Department of State, Background of Note: Brasil,http://www.state.gov/r/pa/ei/bgn/35640.htmix Kwintessential Country Profile Brasil Brasilian Language, Culture, Customs and EtiquetteBusiness Etiquette and Protocol in Brasil Relationships & Communicationhttp://www.kwintessential.co.uk/resources/global-etiquette/Brasil-country-profile.htmlx Kwintessential Country Profile Brasil Brasilian Language, Culture, Customs and Etiquette Factsand Statistics - Religionxi NationMaster.com, South America > Brazil > People, http://www.nationmaster.com/country/br-

brazil/peo-peoplexii Just Brasil website. (2012) Languages in Brasil. Retrieved Mar 20, 2012.http://www.justBrasil.org/Brasil/Brasil-languages.aspxiii U.S. Department of State, Background of Note: Brasil,http://www.state.gov/r/pa/ei/bgn/35640.htmxiv World Bankxv J.P. Morgan, Brasil 101 - 2011 Country Handbook, 2011xvi Central Intelligence Agency, The World Factbook, https://www.cia.gov/library/publications/the-world-factbook/geos/br.htmlxvii IndexMundi, Brasil Age structure, http://www.indexmundi.com/Brasil/age_structure.htmlxviii Central Intelligence Agencyxix J.P. Morganxx J.P. Morganxxi U.S. Department of State, Background Note: Brasil, http://www.state.gov/r/pa/ei/bgn/35640.htmxxii World Bankxxiii Nathalie Beghin Notes on Inequality and Poverty in Brasil: Current Situation and Challenges,2008xxiv J.P. Morganxxv Brasil Government website, http://www.brasil.gov.br/news/history/2011/04/record-exports-and-imports-in-2010-for-Brasil/n

Documents

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