C A R O L I N A H E R R E R AB E A U T Y

HERITAGE• Carolina Herrera is a

global luxury lifestyle brand that sells apparel, accessories and fragrance !

• The brand is known for its effortless elegance and craftsmanship

Brand as a Person Brand as a Product

Brand as a Symbol Brand as an Organization

• Classic• Polished• Effortless Chic• Modern Glamour• Sophisticated• Active Social Life

• Privately held• Subsidiary of Puig• Still growing• Pursuing global expansion• Sales have been reported as $1.3B (2011)

EFFORTLESS GLAMOUR

• Founder, Carolina Herrera is known for her impeccable sense of style.

!

• The brand is a direct extension of her award-winning style.

“How do I want to look? Elegant, feminine, and glamourous.”-Carolina Herrera

CURRENT OFFERINGS

•Carolina Herrera New York—offers women’s ready-to-wear, formal wear, bridal wear and eyewear. !

•CH Carolina Herrera—offers women’s, men’s and children’s ready-to-wear, bags, jewelry, scarves and shoes. !

•Fragrance falls under both labels.

CAROLINA HERRERA CUSTOMERS

Customer Generation Social Profile Traits

Favorite Apparel & Accessory

Brands

Favorite Beauty & Fragrance

Brands

Shopping Habits

Brooke

Boomer

Married to top executive. Mother of two grown children. Well educated. Serves on museum and charity boards.

SophisticatedVery socially active—a lady who lunches. Values quality in luxury. Prefers classic brands.

Carolina Herrera New York, Oscar de la Renta, Peter Som Chanel, Hermes, Badgley Mischka

Carolina Herrera Classic fragrance, Armani, Christian Dior, Chanel Bobbi Brown, Laura Mercier, Yves St. Laurent

Shops at top tier dept. stores, luxury boutiques, uses personal shopper.

Mackenzie

Cusper / Millennial

Married to successful business man. No children. Well educated. Works in public relations. Has family money.

Very active on the social circuit—enjoys art openings, etc. Likes brands that have a “cool” factor. Very plugged in and aware of luxury brands

CH Carolina Herrera, Jason Wu, Burberry, Marc Jacobs, Proenza Schouler, Prabal Gurung, Erin Featherston

CH Carolina Herrera, Bond no. 9, NARS, Marc Jacobs, Tom Ford, Hourglass, Bobbi Brown, Laura Mercier,

Shops at top tier dept. stores, luxury boutiques, specialty stores, loves online / mobile shopping.

WHY COLOR COSMETICS?!•Increasing global demand for super-premium beauty products !•Increase Carolina Herrera’s revenue by opening a new category !•Strengthen Carolina Herrera’s position as a luxury lifestyle brand !•Capitalize on the success of fragrances !•Attract new customers to the brand

CREATING BRAND SYNERGY!•Makeup worn at fashion shows gets almost as much media attention as the clothes do. !

•This increased attention has led to a number of fashion houses developing their own cosmetic lines. Tom Ford, Marc Jacobs Michael Kors and Tory Burch are some recent examples. !

•If done properly, cosmetics can be seen as a natural extension of a fashion label. !

•Carolina Herrera’s reputation for classic, understated glamour will translate well into cosmetics, and also serve to differentiate the cosmetics brand from those of her competitors.

CAROLINA HERRERA BEAUTY!•A full range of cosmetics for the face, eyes, lips and nails !

•Focus will be on effortless glamour, rather than trend-driven !

•Many of the products be multi-functional and have added added anti-aging benefits !

•Skin cosmetics will be offered in a wide range of shades for the global customer base !

•Inspiration and seasonal colors will be drawn from the apparel labels

THE PRODUCTS!•Luxe packaging featuring silver nickel accents and fabrics and from the apparel line !•Multi-functional products include foundations, BB Creams and lipsticks with SPF, concealer with anti-aging serum and mess-free loose powder packaged in a retractable brush !•Prices range from $19-$65

CAROLINA HERRERA BEAUTY POSITIONING

CAROLINA HERRERA BEAUTY DISTRIBUTION

!•A newly created e-commerce site: carolinaherrerabeauty.com !

•All company-owned stores—110 in total !•Bergdorf Goodman (NYC) !•Harrod’s (London) !•Select: Neiman Marcus, Saks Fifth Avenue and Sephora—59 in total

DISTRIBUTION STRATEGY!• Distribution will be limited to urban

centers because that is where the brand currently has maximum brand awareness !

• Quality of sales people. Retailers were selected for their reputations for excellent customer service !

• An e-commerce site must be created because virtually all of Carolina Herrera Beauty’s competitors sell beauty products on their own websites.

PROMOTIONAL STRATEGY

Visit the Carolina Herrera counter at

A new beauty range.

!•Build brand awareness with targeted print and digital campaigns !•Print ads in major fashion magazines !•Digital ads on fashion focused websites !•Numerous events held in company stores and participating retailers !•Campaigns that tie in with runway shows

KEY FACTS AND FIGURES

RISK ANALYSISRISK MITIGATING FACTORS

Political unrest, etc… negatively affecting economies

• The brand will be sold globally, which will somewhat reduce risk in comparison to focusing solely on Western markets, for example.

Getting ‘lost in the mix’ with other fashion cosmetic extensions

• Multi-function and anti-aging are differentiators!• Frequent events increase brand awareness!• Print and digital ad campaign

Low Sales • Regular customer feedback !• Diversified product mix!• Proven demand for products!• Diversity of markets!• Regular visits to retailers

Poor sales staff (at retail partner locations)

• Two week training program!• Frequent retailer visits!• Sales quotas!• Perks program rewards top sellers

Retailer discontinues partnership, or sales are poor at specific retailer

• Diversity of sales channels—Tier one dept. stores, specialty store (Sephora), company-owned stores, e-commerce!

• After year one, the brand will expand to new retailers including select Nordstrom locations.

CONCLUSION!

The Carolina Herrera Beauty brand extension will increase company

profits by increasing both revenue and brand awareness. It will more

firmly position the brand as a luxury lifestyle brand. Firm status as a

lifestyle brand will make it feasible to extend into non-fashion related categories such as home products.

!In 2016, Carolina Herrera Beauty

will launch in 171 doors globally, with an estimated first year sales of

approximately $10.1 million (USD). !

Brand awareness and synergy are keys to success. As such, a print

and digital campaign will be used to capture the target market. Other

key success factors include: quickly gaining traction with key retailers, a well-trained sales force, capitalizing

on the brand’s popularity in key markets such as Brazil.