Alpha Hydrox

Social IMC Strategic

Plan

The Team

Ruthie Fischer

Jay Hover

Nikki Ilchert

Betsey Siska

Johanna Soyars

Agenda• Overview

• Target Markets

• Market Size & Value

• Competitive Analysis

• Social EKG

• Think Social

• Plan Social

• Go Social

• Budget

• ROMI

• Summary

• Appendix

OVERVIEW

The Goal

The Product“Alpha Hydrox alpha hydroxy anti-wrinkle skin creams, lotions, oil-free formulas and body washes help to prevent and reduce the appearance of fine lines, wrinkles and creases.  They also even skin’s tone and unclog pores, helping to banish acne and problem-prone skin.  At a fraction of the cost of discount and department store brands that aren’t even close to being as effective, Alpha Hydrox will help your skin look & feel younger, fresher, smoother, softer, clearer, more radiant and healthier.”

The goal of our team is to present a carefully designed Social IMC Strategic Plan for Alpha Hydrox that focuses on leveraging Alpha Hydrox’s competitive advantages to the highest value markets in order to maximize the return on marketing investment.

TARGET MARKETSIdentifying high value markets

Types of Markets Considered

PASSION MAREKTSFocusing on existing Passion Communities• Passion communities consist of people with

strong feelings toward a specific topic.

TRIGGER MARKETSFocusing on existing Trigger Communities• Trigger communities are formed by those

who experience a specific life event that move a them to action.

There are 2 types of forces that create social communities:

Passion Markets Considered

Beauty Obsessives

MARKET SIZE

4,250,200

Source: infoUSA.com

Passion Markets Considered

ConsciousCleansers

MARKET SIZE

14,021,000

Source: infoUSA.com

Passion Markets Considered

ExpertExfoliators

MARKET SIZE

9,288,000

Source: infoUSA.com

Trigger Markets Considered

PennyPinchers

MARKET SIZE

6,987,000

Source: infoUSA.com

Trigger Markets Considered

AcceptingAge*Secondary market, full presentation in Appendix

MARKET SIZE

63,601,000

Source: infoUSA.com

Trigger Markets Considered

AcneAffected*Chosen Market

MARKET SIZE

45,291,000

Source: infoUSA.com

Market Size and Value

Primary Market Chosen:ACNE AFFECTED

Total Market Size 45,291,000

On Social 33,062,43

0

OTC Acne Market Outlook

Opportunity for Alpha Hydrox

$2.6 Billion in 2016

3.2% CAGR (2011 to 2016)

$2.2 Billion in 2011

Source: http://www.prweb.com/releases/2011/11/prweb8937404.htm

Market Outlook – Opportunity for Alpha Hydrox

“Companies are expected to increasingly formulate products that are aimed at adults with late-onset or persistent

acne.”

Source: PRWeb/IBISWorld Industry Research, November 2011

COMPETITIVE ANALYSIS

Identifying & defining the competition

Industry Leaders – Market Share

The three top companies in

the acne treatment

market account for

an estimated 66.7% of the

industry –

Approximately $1.5 Billion

Brands: Neutrogena, Clean& Clear

Brand: Proactiv

Brand: Clearasil

The Competition

The Competitio

n

Competitive Analysis

S• Effective-level AHA ingredients• Affordable, good value• AHAs effective at treating and

preventing acne• AHAs gentle on skin• Alpha Hydrox brand

“evangelists”• Strong WOM

W• Misconceptions about the product

type (i.e. treatment v. cleanser)• Misconceptions about AHAs (i.e. “too

harsh”) • Limited retail/distribution channels• Limited social presence• Lower brand recognition

O• Leverage “evangelists”• Make use of WOM to increase social

visibility• Educate to curb misconceptions about

AHAs• The product works very effectively on

acne which can be used to Alpha Hydrox’s advantage

T• Low brand recognition will keep leading

to low sales if not improved• Limited distribution can lead to low

sales• Strong WOM but limited social presence

can drive consumers away• The competition is much more high

profile

Competitive Analysis

S• Brand longevity• Product effectiveness; dramatic results• Expert credibility (developed by two

Stanford-trained dermatologists)• Numerous, high-profile celebrity

endorsements

W• Expensive• Limited availability only through

mail/online order; inconvenient• Not available for purchase in stores• Active ingredient benzoyl peroxide

harsh/irritating for some skin types• Three-step system too high

maintenance for some consumers

O• May expand distribution to other

online retailers and brick and mortar stores

• May create additional product/brand extensions to leverage already high recognition/awareness

T• Equally effective, more affordable

options• Easier availability and

convenience of competitor products

Competitive Analysis

S• Expert (#1 dermatologist recommended)

approval• Known acne treatment products• Strong retail presence• High brand awareness/familiarity• Popular Scandal TV show actress Kerry

Washington - new “creative consultant”

W• Extensive choices among product

options can be confusing for consumers

• Lack of understanding among consumers regarding most suitable active ingredients, i.e. benzoyl peroxide v. salicylic acid

O• Continue to leverage the #1

dermatologist approval for clout

• Use other high profile public figures in campaigns, especially to remind consumers of acne product line

T• Increased competition in

acne category• Too many options may

cause consumers to go with a brand that is more specialized in one area

Competitive Analysis

S• Multiple online distribution

channels• More affordable• Availability in numerous brick

and mortar stores• Advertised as “Visible results at

half the price of Proactiv” on website

W• Generic name• Low brand familiarity• High benzoyl peroxide

concentration harsh for some skin types

O• Further promote as less

expensive alternative to Proactiv, especially because of similar, three-step system

• Advertise wide availability of product as a convenience

T• Lack of visibility, high-profile promotion,

and expert/influencer approval may make consumers wary of trying due to concerns about potential negative effects on skin

• Consumers may seek out more natural and gentler products

Competitive Analysis

S• High brand recognition• Top-selling brand for acne

treatment• Owns teen acne market• Inexpensive• Widely available

W• Focus on teen means less

top of mind for adults• Active ingredients in

product line may be unappealing for some consumers

O• Expand product promotion to

adult markets• Develop product extensions using

more natural ingredients

T• More competition/crowded market• Increased alternative offerings using

organic/green ingredients that are more attractive to consumers

Competitive Analysis

S• Trusted brand/parent company• Affordable• Extensive distribution• Current “See the Real Me”

campaign/contest featuring actress/singer Demi Lovato

W• Heavy emphasis on teen girls

market misses opportunities with adults/men

• Confusion over distinctions among product options/offerings

O• Further reach to new target

markets• More information/education on

differences among product offerings and how consumers can make the right choice for their skin

T• Projected growth in industry for

products treating adult-onset and persistent acne may weaken current brand positioning

What is the conversation around Alpha Hydrox?

What is the conversation around the competition?

What is the conversation around the competition?

What is the conversation around the competition?

Alpha Hydrox v. Competition –Key Differences

• Reliance on benzoyl peroxide or salicylic acid for product effectiveness

• Undesirable ingredients for some consumers, especially among adults, those with sensitive skin, and those looking for alternative options

Competitors

• Offers unique, distinct product benefits no competitor can claim

• Only product with effective-level AHAs that are natural and gentle on skin

• Competitive advantage to leverage

Alpha Hydrox

SOCIAL EKGUnderstanding the Alpha Hydrox social community

What is the conversation around the brand?

Keyword Analysis: Alpha Hydrox

Sentiment Analysis: Alpha Hydrox

Social Analysis: Alpha Hydrox

Where do the conversations take place:

Influencer analysisOverall influencers

Influencer analysisTop bloggers

SOCIAL EKGUnderstanding the broader

social community

What is the conversation around our community?

What are the key topics in our community?

What is the sentiment in our community?

Where do these conversations take place?

Influencer analysisTop bloggers

Influencer analysisTop vloggers

THINK SOCIAL Empowering the community

Empowering Concept:

Given the overarching theme of social exclusion we will empower acne sufferers by inviting them into a online destination* that offers them the missing social and expert support and motivation throughout their treatment journey.

As part of the community, they will be encouraged to tell their story and celebrate their progress.

Life In Your Skin

Empowering Concept:

With a focus on 1) find the right treatments and 2) monitoring and rewarding progress, the site will

empower our target by: Help sufferers realize they are not alone. Offer them the best advice that will allow them to

treat themselves in Make them feel like part of a group by connect them

with others currently in or have been in their position to offer encouragement and motivation to treat themselves.

Use of high profile social figures who have suffered to help to ease the social stigma associated with acne

Life In Your Skin

PLAN SOCIAL Developing an

empowering community

Community Site

Monitor / Reward progress through gamification Skin “Selfie” - users upload pictures to show progress

over time. Other users can comment / like / vote for most progress

shown over time Users keep daily treatment diary that motivates use of

product Incorporate the use of Alpha Hydrox product into

“selfie” to act as enhancer to the process and help users progress further through the site.

Treatments Personalized treatment plans based on checklists that

qualify an individual for a particular treatment. Webinars that discuss causes / treatments

Life In Your Skin

Community Site

Support Site & Monitoring Partner with webMD for content sharing and FAQ Support site connects with real time video to keep

personal and “group” feel Full time monitoring of posts to ensure all dialogue is

positive and reinforces the sense of support and group motivation that the site seeks to foster.

Directory Users can review / recommend products and link to

where to find them FAQ & Truths

Engage users with compelling content about acne and separate fact from fiction

Life In Your Skin

Community Site

Features Profile pages for members Messaging system - for like / votes / comments Ranking / poll elements for product treatment

reviews FAQ section/get the facts Full time support team. Ongoing regulation of

comments and posts is of critical importance to our community to ensure the positive and supportive environment that we wish to nurture.

Single sign on and sharing progress with social networking sites

Life In Your Skin

Multiple entry points

Community & connection

Community mobile app

Progress charts linked to user accounts - monitor both “selfie” element and how they are progressing on treatment plan

Gamification add on allows for photo upload and personalized coaching

Your ProgressDay 7

GO SOCIAL Developing an

empowering community

GOING VIRAL

Long Tail Medium Tail

Short Tail

THE LONG TAIL

• Press release dispatch to key titles targeting• lifestyle / popular culture / health / wellness

• Print Campaign• Full page advertisements in select pillar titles

• Influencers who will be involved in teaser campaign and join together for a launch webinar• Bloggers – Jess Bunty (Vlogger) & Dr. Cynthia

Bailey• Celebrities – Cameron Diaz to feature in launch

webinar

• Point of Sale Activation• 3D aisle display at retail touch points (Walgreens)

QR codes takes consumers directly to registration page

Long T

ail

THE MEDIUM TAIL

• Banner Ads• Alpha Hydrox website and key youth and

parenting online publications and skin care sites

• Facebook Ads• Targeting target market with banner ads for acne

help and support

• Ad Words• Target acne and skincare within content sites

Mediu

m T

ail

THE SHORT TAIL

• Communications to existing Facebook fans

• Twitter messages - leveraging on existing Alpha Hydrox customer base and the followers of collaborating influencers

• Influential bloggers - to act as ambassadors and contributors to community site - linking their own exclusive content.

• Email Blast - Rent of email database for initial teaser blast

• Alpha Hydrox Website - divert traffic to community site

SH

ORT T

AIL

TEST PLAN

Emails Measure the communication

that drives the highest registration rate

Banner Ads Leveraging on existing website, measure communications that

drive highest click through rates.

Twitter – using Alpha Hydrox current

handle to test message strategies and measure click

through rates

Facebook Ads & Posts existing followers –

To test a variety of calls to actions rates of click through

Display – acne bids are much more

reasonable within content sites $1/click and would have access

to more editorial sites which may be more inclined to become members of our

community site

Paid Search – acne bid prices are relatively high at $4-$6/click, but can determine engagement and

conversion for community site and also AOV

Prior to launching in October message testing will be carried out in the Following channels:

SUMMARY TIMELINE

JULY

•Press Release to key media•Paid Search/Display advertising (Testing)•Facebook Advertising (Testing)•Contact with bloggers

AUGUST

•Email testing•Banner Ad testing•Creation and booking of Print Ad campaigns•Ongoing - paid search / Facebook advertising

SEPTEMBER

•Print Campaign Live•Digital campaign live•Blogger Posting•Ongoing - paid search / Facebook advertising•POS campaign•Email Campaign - registration and webinar invitation

OCTOBE

R

•LAUCH WITH WEBINAR

SUMMAY MEDIA PLAN

THE BUDGETPilot and Full Launch

Breakdown

Pilot BudgetPilot (3 months)

Talent $81,125

Technology $125,000

Maintenance $6,800

Media $18,500

Total $231,425

CHANNEL COSTPR $2,000

Email Marketing $1,500.

Facebook $5,000

Paid Search/Display $10,000

SUBTOTAL $18,500

1 Year Plan BudgetFull (1 year)

Talent $448,000

Technology $155,000

Maintenance $27,200

Media $345,215

Total $975,415CHANNEL COSTPrint Advertising $159,565

In Store Promo $20,000

PR $110,000

Email Marketing $10,000

Digital Advertising $5,650

Facebook $15,000

Paid Search/Display $25,000

SUBTOTAL $345,215

ROMIJustifying the Plan & Budget

with forecasted results

The Funnel

  Universe Assumptions

  Low Mid High Low Mid High

Total Target Market 45,291,000 45,291,000 45,291,000     

Total Social Market 33,062,430 33,062,430 33,062,430 73% 73% 73%

Landing Page 66,125 165,312 231,437 0.2% 0.5% 0.7%

Registration Acceptance 16,531 49,594 81,003 25% 30% 35%

Website/Mobile Use 6,612 24,797 48,602 40% 50% 60%

Product Inquiry 3,306 13,638 29,161 50% 55% 60%

The Funnel

  Universe Assumptions Value

  Low Mid High Low Mid High      

First Purchase 1,984 8,865 20,413 60% 65% 70% $89,269 $398,919 $918,573

Best Customer 198 1,152 3,062 10% 13% 15% $198,375$1,152,43

2$3,061,91

2

     

  

Total Value$287,643$1,551,3

51$3,980,4

85

Break-Even AnalysisBudget (Full) $975,415.00 Budget (Pilot) $231,425.00 Avg Purchase $45.00 Avg Annual Purchase $1,000.00 Avg Purch + 10% of Annual $145.00

# of Subscribers% of Total

Market NotesB/E Point (Test)

5,143 0.011% Only make first purchase

B/E Point (Test)

1,596 0.004% First purchase + 10% become annual avg purchaser

B/E Point (Full)

21,565 0.048% Only make first purchase

B/E Point (Full)

6,693 0.015% First purchase + 10% become annual avg purchaser

SUMMARY

Summary

•Target the high value Acne Affected market.

•Build the Life In Your Skin community powered by Alpha Hydrox.

•Test different messaging across different channels to find the optimal combinations.

•Generate buzz around the community site and Alpha Hydrox leading up to launch

•Carry out the launch of Life In Your Skin with a viral kickoff.

•Obtain information for a database from the registration information exchange.

•Keep the community engaged well beyond their registration to the Life In Your Skin site.

•Enjoy the Return on Marketing Investment.

Thank You!

Alpha Hydrox

Appendix

TARGET MARKET

Trigger Market Chosen

AcceptingAge

Market Size and Value

Market Chosen:Accepting Age

Total Market Size

63,601,000

On Social 41,340,65

0

Anti-Aging Market Outlook

$191.7 Billion in 2019

7.8% CAGR (2013 to 2019)

$122.3 Billion in 2013

Source: http://www.prweb.com/releases/2011/11/prweb8937404.htm

COMPETITIVE ANALYSIS

Identifying & defining the competition

Competitive Analysis

The Competitio

n

Competitive Analysis

S• Effective-level AHA ingredients• Affordable, good value• Anti-aging benefits• Alpha Hydrox brand

“evangelists”• Strong WOM

W• Misconceptions about the product

type (i.e. treatment v. cleanser)• Misconceptions about AHAs (i.e. “too

harsh”) • Limited retail/distribution channels• Limited social presence• Lower brand recognition

O• Leverage “evangelists”• Make use of WOM to increase social

visibility• Educate to curb misconceptions about

AHAs• The product works very effectively

which can be used to Alpha Hydrox’s advantage

T• Low brand recognition will keep leading

to low sales if not improved• Limited distro can lead to low sales• Strong WOM but limited social presence

can drive consumers away• The competition is much more high

profile

Competitive Analysis

S• Moisturizing, anti-aging benefits• Brand longevity• Big product safety focus• Current twins study promotion keeping

brand visible

W• Dated brand image• “Cold cream” connotation

O• Can use product safety focus on

future campaigns to emphasize corporate responsibility

• Longevity of brand / large product line can nurture consumer from product to product for a lifetime relationship

T• Consumers may not make the

connection between Olay and anti-aging or acne

• “Older” image may drive away younger consumers and millennials

Competitive Analysis

S• Expert (#1 dermatologist recommended)

approval• Known acne treatment products• Strong retail presence• High brand awareness/familiarity• Popular Scandal TV show actress Kerry

Washington - new “creative consultant”

W• Lower awareness of anti-

aging products• Extensive choices among

product options can be confusing for consume

O• Continue to leverage the #1

dermatologist approval for clout

• Use other high profile public figures in campaigns, especially to raise awareness of anti-aging products

T• Anti-aging products may

suffer due to low awareness

• Too many options may cause consumer to go with a brand that is more specialized in one area

Competitive Analysis

S• #1World’s largest cosmetics company,

global presence• Complete line of beauty care products• “Because you’re worth it” high brand

recognition• Commitment to research and

technology• Current “It’s THAT Worth It” sunscreen

PSA

W• Makeup and hair care

products may be more top of mind for consumers versus skincare offerings

• Expensive (many of the anti-aging products are over $20)

O• High R&D budget can lead to new

or high tech product discoveries, which may be first to market

• High brand recognition can lead to ease in entering new markets or launching new products

T• Skin care products may suffer

since consumers associate brand more with makeup

• Expensive cost may cause consumer to go with other similar offerings at lower price tags, or even bargain brands

What is the conversation around Alpha Hydrox?

What is the conversation around the competition?

What is the conversation around the competition?

SOCIAL EKGUnderstanding the social

community

What is the conversation around the brand?

Influencer AnalysisTop Bloggers

Social Mention

AllTop

· Pam, Pammy Blogs Beauty Blog

·Lianne Farbes, The Makeup Girl

·Jackie, Aging Backwards

Influencer AnalysisTop Tweeters

THINK SOCIAL Empowering the community

Problem Faced by the Community

In a culture obsessed with youth and beauty, women strive to embrace aging gracefully and not let the process rattle their self-esteem while still doing what they can to look and feel their personal best.

Problem Faced by the Community● Women face daily messages

online, in magazines, and on TV that they must maintain a youthful appearance.

● Women feel pressure to reverse the aging process as much as possible and are often held to unrealistic and unattainable standards.

● This impacts how women feel about themselves and can lower their confidence.

● A recurring theme in many of these messages is sole emphasis on the external and physical.

Empowering Concept –“My Beautiful Moments”

A focus on living life well in general and getting through life’s challenges with grace cultivates inner beauty, showing up as radiance on a woman’s face and enhancing her physical beauty and skin in the process, no matter her age.

PLAN SOCIAL Developing an

empowering community

The Accepting Age Community Site

• We will create a private virtual community for women facing the aging process to celebrate “Beautiful Moments” and to discuss which products and treatments result in great skin, making them look and feel their personal best.

• The site will focus on the positive aspects of aging, instead of approaching the process with fear or dread.

The Accepting Age Community Site• A key component of the site will

be the “My Beautiful Moments” feature, where community members will be encouraged to share stories (either through video or written postings) of when they felt their most beautiful, especially moments that don’t necessarily equate with a perfect outward appearance.

• Examples might be right after giving birth, crossing the finish line of a marathon, working in the garden, or getting a clean bill of health after a long illness. Members will also be encouraged to recruit others to the site to submit their moments.

The Accepting Age Community Site• Through gamification, community

members will vote for their favorite “beautiful moments” stories. They can also submit before and after photos of the results on their skin from using their favorite products.

• A discussion forum on the site will be devoted to spreading the word and increasing the exposure of organizations that empower young girls and women.

• One example is the Step Up Women’s Network in Chicago, whose mission is to “empower teen girls from under-resourced communities to be confident, college-bound, and career-ready, and propel professional women through connections, collaborations, and continuous development.” (www.suwn.org)

Launch Webinar with Dr. Oz• Dr. Oz is a strong advocate for

the effectiveness of AHAs and lends expert credibility and celebrity profile

• Launch community site with Dr. Oz webinar and live Twitter Q&A to discuss skincare and well-being

• First winner selected by Dr. Oz of “My Beautiful Moments” contest; subsequent monthly winners will be voted on by the members of the community site

• Donation by Alpha Hydrox to charity of each winner’s choice that focuses on empowering young girls and women and Alpha Hydrox product prize given to winner

Community Site DetailsThe following elements will ensure our community is engaging over time:

• Gamificationo Points/Rewards system for activity on the site (sign on, posting a blog,

uploading a photo), potential rewards could be Alpha Hydrox or other health and wellness products, or featured user profile.

o Beautiful Moments Contest – voting by the community on favoriteso Before/after Photo Uploads - showing great skin resulting from great

products

• Treatments/Recommendations via Videos, Webinars, and Blogso The site will provide customized recommendations based on specific skin

care needso Ongoing webinars, videos and blog posts from guest experts on skin care

• Forumso Discussion of favorite products/treatments o Sharing and promotion of organizations that empower girls and women and

increase their confidence

• Skin Care FAQso This section will include content that dispels current myths about AHAs

Community Site Components

The following components are needed to make this Empowering Concept work: • Website for Private Virtual Community

• Registration Page• Personal Profile• Discussion Forums• FAQ Section• Blog Section• Before and After - Ability for users to upload and track multiple photos• Beautiful Moments Contest - Ability for users to upload photos and vote on them• Gamification Element - Measurement and stat tracking for rewards/points

structure• Site Moderators to police the site for improper use• Expert Bloggers / Influencers to host Webinars, write blogs, and guide

conversations

• Mobile App Integrations

GO SOCIAL Developing an

empowering community

GOING VIRAL

Long Tail Medium Tail

Short Tail

THE LONG TAIL• Press releases

• Sent to health and wellness and women’s interest titles• Sent to influential bloggers – Pammy Blogs Beauty,

Lianne Farbes, Rae of the RAEviewer

• Print Campaign• 1/3 page ads in women’s interest titles that focus on

overall well-being, health and beauty• Self and O Magazine

• Influencers - will be involved in teaser campaign, will serve as speakers for a monthly webinar, writers for a monthly blog post, and promoters of monthly “My Beautiful Moments” contest where community members submit stories via written posts and videos of when they felt their most beautiful• Bloggers – as listed above• Celebrities – Dr. Oz for launch webinar and live Twitter

Q&A

• Point of Sale • In-store promotions at Ulta Stores with photo booth,

demonstrations with Alpha Hydrox brand evangelists, and product giveaways

Long T

ail

THE MEDIUM TAIL

• Banner Ads• On Alpha Hydrox website• On Prevention.com, Realage.com,

Cosmopolitan.com

• Facebook Ads

• Facebook Promoted Posts

• Promoted Tweets

Mediu

m T

ail

THE SHORT TAIL

• Facebook – communications to existing fans, promotion of monthly webinars, promotion of monthly “My Beautiful Moments” contest

• Twitter – leveraging on existing Alpha Hydrox customer base, the followers of collaborating influencers, and promotion of monthly webinars and contest

• Influential bloggers – to act as ambassadors and contributors to community site by linking to their own exclusive content, writing a monthly blog post, serving as webinar speakers, promoting the “My Beautiful Moments” contest, and increasing awareness of women’s organizations and charities gaining exposure and traction through the community site

• E-mail Blasts – for launch and monthly webinars, contest and in-store events, and monthly newsletter

• Alpha Hydrox website – divert traffic to community site

SH

ORT T

AIL

TEST PLAN

Emails A small subset of the total

database will be used to test a variety of subject

lines/message content, aimed to measure the communication

that drives the highest retention rate

Banner Ads Leveraging on the Alpha

Hydrox existing website, tests to be carried out to measure

communications that drive the highest click through rates

Twitter using Alpha Hydrox current

handle to test message strategies and measure click

through rates

Facebook Ads & Poststargeted ads and posts will be

used to test a variety of calls to action to measure rates of click

through

Prior to launching in October message testing will be carried out in the following channels:

SUMMARY TIMELINE

JULY

•Press releases to health and wellness and women’s interest magazines•Contact with bloggers

AUGUST

•Print ad creation•Launch event/webinar, monthly newsletter, contest e-mail testing•Facebook, Twitter and banner ad testing

SEPTEMBER

•Print Campaign Live•Digital campaign live•Blogger Posting•Point of sale and in-store promotions campaign•E-mail campaign – registration and webinar invitation, call for “My Beautiful Moments” contest submissions

OCTOBE

R

•Launch site with Dr. Oz webinar and live Twitter Q&A•First winner selected by Dr. Oz of “My Beautiful Moments” contest; subsequent monthly winners will be voted on by the members of the community site

•Donation by Alpha Hydrox to charity of each winner’s choice that focuses on empowering young girls and women and Alpha Hydrox product prize given to winner

SUMMAY MEDIA PLAN

THE BUDGETPilot and Full Launch

Breakdown

Pilot BudgetPilot (3 months)

Talent/Staff $81,125

Technology $125,000

Maintenance $6,800

Media $176,000

Total $388,925

CHANNEL COSTPrint $170,000

Banner Ads $3,000

Social Media $3,000

Email Marketing (Included in cost of staff and database)

SUBTOTAL $176,000

1 Year Plan BudgetFull (1 year)

Talent/Staff $448,000

Technology $155,000

Maintenance $27,200

Media $735,000

Total $1,365,20

0 CHANNEL COSTPrint $340,000

In Store Promo $25,000

Webinar $250,000

Contest $60,000

Blogger Collab $5,000

Banners $30,000

Social $25,000

SUBTOTAL $735,000

ROMIJustifying the Plan & Budget

with forecasted results

The Funnel

  Universe Assumptions

  Low Mid High Low Mid High

Total Target Market 63,601,000 63,601,000 63,601,000     

Total Social Market 4,643,530 4,643,530 4,643,530 73% 73% 73%

Landing Page 9,287 23,217 32,504 0.2% 0.5% 0.7%

Registration Acceptance 2,321 6,965 11,376 25% 30% 35%

Website/Mobile Use 928 3,482 6,825 40% 50% 60%

Product Inquiry 466 1,915 4,095 50% 55% 60%

The Funnel

  Universe Assumptions Value

  Low Mid High Low Mid High      

First Purchase 1,984 8,865 20,413 60% 65% 70% $89,269 $398,919 $918,573

Best Customer 198 1,152 3,062 10% 13% 15% $198,375$1,152,43

2$3,061,91

2

     

  

Total Value$287,643$1,551,3

51$3,980,4

85

Break-Even AnalysisBudget (Full) $970,415.00 Budget (Pilot) $231,425.00 Avg Purchase $45.00 Avg Annual Purchase $1,000.00 Avg Purch + 10% of Annual $145.00

# of Subscribers% of Total

Market NotesB/E Point (Test)

5,143 0.011% Only make first purchase

B/E Point (Test)

1,596 0.004% First purchase + 10% become annual avg purchaser

B/E Point (Full)

21,565 0.048% Only make first purchase

B/E Point (Full)

6,693 0.015% First purchase + 10% become annual avg purchaser

SUMMARY

Summary

•Target the high value Accepting Age market.

•Build the Beautiful Moments community powered by Alpha Hydrox.

•Generate buzz around the community site leading up to launch and Alpha Hydrox.

•Carry out the launch of Beautiful Moments with a viral kickoff, including a webinar with Dr. Oz and “My Beautiful Moments” contest.

•Obtain information for a database from the registration information exchange.

•Keep the community engaged well beyond their registration to the Beautiful Moments site with voting in the monthly contest, donations made to charities empowering young girls and women, and product giveaways.

•Enjoy the Return on Marketing Investment.