Download - Beyonce project

Transcript
Page 1: Beyonce project

Shana Williams

Final ProjectSteve Norman & Ann O’Nale

Product and Artist ManagementDue August 30th, 2009

Page 2: Beyonce project

“B.K. Perfume”By Beyonce Knowles

Page 3: Beyonce project

Business Concept & Project Definition

❖ Appropriateness of Beyonce and why Beyonce and her product is the best choice

❖ Beyonce Knowles reigns over the entertainment industry in many forms. She is a Singer, Actress, Model, and an Entrepreneur. Also one of her greatest qualities is being a Spokes Person for many different products. Beyonce Knowles started off as lead singer of the R&B girl group Destiny’s Child and than broke away from that to peruse a successful solo career upon which she has received 3 number one albums and 5 grammy awards for her efforts. (http://www.answers.com/topic/beyonc-knowles) With all of this success under her belt, along with movie roles in films like “Dream Girls” and “Cadillac Records”, one can clearly see why she is a house hold name. (http://

www.answers.com/topic/beyonc-knowles) Beyonce is admired by the generation of today, inspired to look like, sound like, and act like everything that embodies her. When you have a star like that pushing your product you cannot fail.

(http://images.eonline.com/eol_images/Profiles/

20060912/244.knowles.beyonce.091906.jpg)

Page 4: Beyonce project

Business Concept & Project Definition

❖ Beyonce has represented a wide range of products from, “L’oreal” products, “Pepsi”, “Tommy Hilfiger”, “Verizon”, “Armani”, and her own “House of Deron” line. (http://

www.answers.com/topic/beyonc-knowles) Mostly any product that can help a fan look like or live the stylish lifestyle of Beyonce is being endorsed by Beyonce. For example, lets say you want beautiful blonde hair and make up just like Beyonce, than of course you would use the products created by “L’oreal”,which she says she uses. Or lets say you want a

fragrance or something to drink but there’s too many competitors to chose from, of course the product that Beyonce sells will help you make the choice. (http://www.answers.com/topic/beyonc-knowles)

( http://www.youtube.com/watch?v=LRf9Spt5toI)

Page 5: Beyonce project

Business Concept & Project Definition

❖ My choice of artist related products and the appropriateness of the perfume to Beyonce and the assignment

❖ The perfume business is an excellent resource to invest in. Since last year alone the business has gone up 2 percent in the United States.(Horyn,2005) Choosing a celebrity to represent your product is also a good idea because celebrity perfumes represent more than a quarter of the money made from perfume sales today.(Horyn,2005)

(http://www.fashion.hr/img/repository/2007/05/medium/

beyonce.jpg)

Page 6: Beyonce project

Size & Nature of the Market(http://www.doctorhit.ro/wp-

content/uploads/beyonceonline.com/content/

wallpaper/3Beyonce800x600.jpg)

Target MarketPrimary: Ages 16 to 28, are our main demographic and target market, they are also Beyonce’s ,main fan base and will be the first to buy our product. (http://www.answers.com/topic/beyonc-knowles)

Secondary: Ages 29 to 45, probably the generation which can afford the product the most, and while not their favorite artist, they are still Beyonce’s fans. and are the generation to buy perfume, more likely. (Horyn,2005)

Page 7: Beyonce project

Size & Nature of the Market

❖ Product Versioning

(http://www.rap-wallpapers.com/data/media/2/beyonce_wallpapers_23.jpg)

❖ Global Markets❖ We do plan to go international with this

product especially if Beyonce goes on tour and it is international. International sales are very big for the perfume industry which is a good thing. Sales from Eastern Europe and Latin America account for most of the revenue generated for companies like Chanel, Estee Lauder, and Dior. (www.thenational.ae/article/20080708/BUSINESS/301852227/1055&Profile=1055) This is because perfumes originate from counties like these not only being a part of their culture but their background. (www.thenational.ae/article/20080708/BUSINESS 301852227/1055&Profile=1055) This is also a good idea to go international because Beyonce’s fan base is big outside the United States. Beyonce has had number one hits in Norway, Sweden, South Africa, Korea, Brazil, and Denmark.(www.eurweb.com/story/eur49317.cfm)

❖ We are hoping to market everywhere from commercial to the packaging of Beyonce’s albums and tour.

Marketing program

Positioning The Positioning is going to be High end, not just because of the price but because Beyonce is a brand that can sell at any dollar amount

The world of Perfumes and Colognes is big and has a design specifically tailored to fit the style of each type of customer. Most perfumes for women come in the scents of flowers, fruits, and sweets, with unique packaging from the bottle to the box that will fit the brand which it belongs to.(www.nytimes.com/2005/06/30/fashion/thursdaystyles/30PERFUME.html?pagewanted=2&ei=5090&en=dd6d1b6d6cc0df7b&ex=1277784000&partner=rssuserland&emc=rss)

Page 8: Beyonce project

Competition❖ Rihanna

A popular Artist who has always been as a threat to Beyonce’s career has been Rihanna. Growing up in the R&B and Pop industry, just as Beyonce did, lead the way for numerous deals with companies such as J.C. Penny’s, Cover Girl, the fragrance Clinque Happy with Clinque, and a deal with Gucci as well(http://www.answers.com/topicrihanna)

Ciara Probably the most similar artist to Beyonce, stylistically out there today, anything Beyonce can endorse, Ciara can to. It does not help Beyonce that Ciara has just signed a contract with Wilemmena Modeling agency, the same agency which got the L’Oreal and Armani deals for Beyonce.(http://music.lovetoknow.com/

Ciara_Biography)

Mariah Carey Mariah Carey is a still a bigger name than Beyonce, but just not a bigger brand. She just released her own perfume entitled “M” by Mariah Carey by Elizabeth Arden and also has a deal with Pepsi as well as motorola. Pepsi pitched the song “Time of Your life” during her “Adventures of Mimi” tour.(http://www.musicsnews.com/

articles/677/1/Mariah-Carey-to-develop-fragrance-line)

(http://www.morgenutgaven.co

m/innhold/rihanna_umbrella_tega

nsara_lat.jpg)

(http://images.starpulse.com/

Photos/Previews/Ciara-lf03.jpg)

(http://www.superphotospace.com/

images/mariah_carey242_471f270442aca.

jpg)

Page 9: Beyonce project

Risk✦ Some huge associated risk with celebrities

are their celebrity status.

If you get into an endorsement deal with a celebrity, the biggest thing is making sure that they keep up the image that represents the brand. Look at how bad “Curious” by Britney Spears did during her break down period or how quick “Doublement Gum” was to drop Chris Brown after his spat with Rihanna. (http://www.mtv.com/news/articles/1604613/20090209/

brown__chris__18_.jhtml) A major risk is alway going to be that the celebrity can tarnish their status, thus tarnishing the reputation of your product.

Another risk which keeps occurring is the target audiences of celebrities today do not match the target audience of those buying perfumes. These perfumes are marketed to the demographic of the artist’s fans which in this case could be any where from age 8 to 38 but there’s a huge focus on ages 16 to 28, which is not the perfume generation. Are biggest task may being getting a generation stuck on electronics like Ipods, to buy fragrances. (http://

(http://d.yimg.com/a/p/ap/20090825/capt.f285c8a87c64471c93fc600104509d1b.

people_chris_brown_cacp125.jpg?x=213&y=309&xc=1&yc=1&wc=282&hc=409&q=85&sig=6VX_ofQfurokSVMH0bu5

8A--)

(http://fashaddix.com/wp-content/uploads/2008/07/chris-brown-doubles-his-

pleasure.jpg)

(http://www.digimetroonline.com/blog/wp-content/uploads/2007/02/

britney-shaved-head-1.jpg)

(http://www.justimported.com/shop/images/

britneycara.jpg)

Page 10: Beyonce project

Sales & Marketing Strategy❖ Marketing Plan

Long-term objectivesTo use product which is the new fragrance called "B.K. Perfume By Beyonce". This will be the first in a series of fragrances to be released by the singer in the near future.Problems/opportunitiesPotential Problems could include anything from a problem with the pricing of the perfume coordinating with the celebrity and their demographic age group’s standard income to celebrity actions in the media ruining the reputation of the product.

Opportunities can include the chance to build the brand of Beyonce or the opportunity to capitalize off of her tour in order to spread the product throughout her fan base and the entire United States as well as other counties in the event of an international tour.Sales forecasts/goals

We plan to sell the product at 75’$ per bottle, though the average fragrance endorsed

by a celebrity is always from 40 to 55 dollars. (Horyn,2005) But we are the brand of Beyonce so we want to be at the higher end, so we had to pull up the price to match the name. We are expecting to sell 240,000 bottles at the end of the year, which will amount to 18 million in-terms of sales, which seems reachable when you look at how

“Curious” by Britney Spears Sold 36 million in its first 4 months. (Horyn,2005)

(http://www.funonit.com/foto/gnocche/beyonce_knowles/beyonce_knowles_219.jpg)

Page 11: Beyonce project

Artist & Sales Management Team❖ Key Team Members✦ President- Shana Williams

Senior VP- job is to make certain that “B.K. by Beyonce” not only constantly represents the brand name Beyonce but is consistent and trying to let young women everywhere know that this fragrance fits them.

Business Unit Manager- To make sure that we a provided with a proper budget to launch the new products which will be our start in the U.S. as well as goals and plans which will help us stay in trend.

Product Development- Taking feedback from surveys and target audiences and changing the product to better fit our main customer.

Market Research- Comparing and Contrasting how our product did compared to other similar products, what were perfume sales like in total over the past year, Who improved, and what are they doing that we are not?

Marketing and communications- Coming up with new marketing strategies or more effective ways to launch the product, making sure that those plans get carried out. Making sure concert and tour events which are for our perfume promotion run smoothly.

Sales- Driving toward sales, showing the customer that your perfume is the one for them. Not giving up at letting them know that the price is totally worth it. Finding new ways and opportunities to sell to the customer.

Operations- Operating customer support and getting feedback, taking complaints or suggestions.

Corporate Relations- Coming up with new business strategies on how to better promote the product, as well as the artist. Always finding new ways to develop the product along with the artist music.

Personnel- The product manger themselves, who knows everything about the product and the artist as well.

Quality Assurance- testing the perfume quality and the safety of it, everything from the shape of the bottle to the formula of the perfume used.

Page 12: Beyonce project

Growth & Milestones & Projections

❖ The way that we ensure that the project is in on time and on budget is by having the actual perfume ready within weeks of starting up and releasing the product and promotion according to tour date. What we have is a padded budget for the cost of goods, payroll, touring, promotion, advertising, and distribution in case we go over the plan.

❖ For the first 3 years we intend to make over 54 million dollars. We want to make 18 million the first year and 36 million the second year to keep everything steady.

(http://graphics8.nytimes.com/images/blogs/themoment/posts/0216moneyfan.jpg)

Page 13: Beyonce project

GraphJanuary February March April May June July August Septemb

erOctober Novembe

rDecembe

rB.K. Perfume Net Salespay back point

500000 1000000 1250000 2500000 5000000 7500000 10000000 12500000 15000000 17500000 18000000 20000000

10000000

0

5000000

10000000

15000000

20000000

January February March April May June July August September October November December

Investor return

B.K. Perfume Net Sales pay back point

We will be asking for 10 million dollars

which is 4 million for touring and

promotions and the other 4 million for the

production of the product as well as

distributing it. The other 2 million is for a pad incase we go over

budget with advertising and

shooting the promos and videos.

We will give back the 10 million at the end

of July of the first year.

Page 14: Beyonce project

Product & Prototype

❖ The product is going to be in an hourglass shaped bottle with a gold tint and the fragrance is going to have a gold potion like tint, with sand at the bottom, which the spray bottle will not pick up.

❖ the handle is going to have a plastic “Bee” on it and inside the bottle with the sand as that is one of Beyonce’s signature trademarks. As a result of the “Bee” the scent will smell like honey and be called B.K.

❖ There will also be little “B’s” as in the letter “B” floating around in the sand.

(http://thumbs.dreamstime.co

m/thumb_4/1097610739S0

F2zR.jpg)

(http://p.dada.net/cspv/

93-38-70-00-00-ImagePreview-JPEG200x200/

beyoncé/beyonce-bee-logo.jpg)

Page 15: Beyonce project

statement

(http://www.actumix.com/wp-content/uploads/2008/04/2Beyonce1024x768.jpg)

To the female youth market, Beyonce’s “B.K.” is the fragrance that will keep anyone smelling beautiful and sexy because of its sweet honey scent and curvaceous design.

Page 16: Beyonce project

✦ Pricing strategy

Description:We will be pricing the product at 75 dollars per bottle. If sales start of bad in the first quarter than we are prepared to go down to 65 dollars per bottle.

Objective:We want to find out what does not work, the artist, the price or the perfume itself. We believe fans will by the product at any price but we are also thinking about the youth and the economy we live in and what is reasonable.

Advertising strategy

Message and Media strategy:A music video and Commercial rolled into one which will be the launch of our advertising, The fragrance should coincide with the launch of her new album which should also be called “B.K.”

Everyone can relate thorough song, so her new single will remind people of the perfume as well as promote it at the same time.

We also would like to tour in order to promote the project, selling the perfume will on tour recuperating as much as 3 million in sales as promoting the perfume as tour merchandise.

Cost: 45 thousand, we shoot outside in Louisiana using the swamp as a setting and product placing the perfume in the grass, as she dances and sings around it.

Rationale: People would enjoy a music video that has our product in it no matter what country they are in, music is universal. We will run the same advertisement everywhere but the voice over talking about the product will be in the language of the country the commercial is being shown in.

(http://www.rap-wallpapers.com/data/media/2/beyonce_wallpapers_14.jpg)

Page 17: Beyonce project

Financial

✦ Promotion strategy

Description:Promotion along with the artist new album that is coming out. also a lot of big posters in shopping centers as well as commercials and of course the artist mentioning our product in movie or in songs. Contest for Beyonce tickets when a customer purchases the perfume, may work as a good strategy.

Objective:to make the name Beyonce and “B.K.” go hand in hand so customers want the perfume as much as they want to be her. The eye catching promotion is something that they will not be able to escape.

Field sales planDescription: Free samples and testing for all to try, maybe we send them out in the mail for free, maybe you get them in her album or if you go to a Beyonce event. Also we set up booths in certain malls or strips, just to get word out about the product.

Distribution strategyStrategy: Start selling at department stores like Macy’s or J.C. Penny’s. Selling at a place like this is the best option for getting the product to to young women customers, we should also sell the product at music stores like “FYE” where it can be promoted with the album. Also a good idea may be to distribute samples in the packaging of Beyonce’s albums and to distribute them while she is on her U.S. tour.

Product supportDescription: product cannot be returned because of disapproval of scent but we are open to customer suggestions as we are trying to figure out what are the pro’s and con’s of the product. We will however list ingredients inside the packaging incase of a customer allergy, for warning and safety purposes.

(http://www.beyoncenow.com/picture/appearances/

beyonce_wma_performance6.jpg)

Page 18: Beyonce project

Closing Statement

❖ In the end I can say that this would be an incredibly smart investment to make. One last note to leave with is that Beyonce is the richest star under 30, how did she do it you may wonder? By making 20 million in deals such as these.( http://www.aol.in/internationalmusic-story/How-Beyonce-Knowles-became-the-Richest-Star-under-30/441007)

❖ Ponder that thought as you make your discussion

Page 19: Beyonce project

Works Cited✦ 1.) “Beyonce Unveils Overseas Tour Schedule: Month-long trek to begin April in Zagreb.” (December 12th, 2008) Retrieved on August 23rd 2009 from http://

www.eurweb.com/story/eur49317.cfm

2.) “Beyonce Biography” Retrieved on August 23rd 2009 from http://www.answers.com/topic/beyonc-knowles

3.)“Beyonce Pepsi” Retrieved on August 23rd 2009 from http://www.youtube.com/watch?v=R2gkATAq_us

4.)“Ciara Biogrpahy” Retrieved on August 23rd 2009 from http://music.lovetoknow.com/Ciara_Biography

✦ 5.) Grochels, Linda. The Project Managers HandBook third addition. 2006. McGraw-Hill. New York, New York.

✦ 6.) Horyn, Cathy. June 30th 2005.(The Sweet Smell of Celebrity) www.NewYorkTimes.com Retrieved on June 24th 2009

7.) Montgomery, James. Febuary 9th 2009. http://www.mtv.com/news/articles/1604613/20090209/brown__chris__18_.jhtml) Retrieved on June 24th 2009

8.)“NEW! 2008 Feria Hair Color Commercial by L'OREAL (Solange & Beyonce”) Retrieved on August 23rd 2009 from http://www.youtube.com/watch?v=LRf9Spt5toI

9.)Salama, Vivian “Scents and Sensibility” (July,8th 2008) Retrieved on August 23rd 2009 from http://www.thenational.ae/article/20080708/BUSINESS/301852227/1055&Profile=1055

10.)“Rihanna Biography” Retrieved on August 23rd 2009 from http://www.answers.com/topicrihanna

11.)“Tommy Hilfiger True Star - Beyoncé”August 23rd 2009 from http://www.youtube.com/watch?v=8xHtAUD027A&feature=PlayList&p=9BC002F2BB5D0D68&playnext=1&playnext_from=PL&index=28

12.) Tsaqarakis, Giannis “Mairah Carey to Develop Fragrance Line” (April 8th 2006) Retrieved on August 23rd 2009 from http://www.musicsnews.com/articles/677/1/Mariah-Carey-to-develop-fragrance-line

\

Page 20: Beyonce project

13.) Retrieved on August 23rd 2009 from http://images.eonline.com/eol_images/Profiles/20060912/244.knowles.beyonce.091906.jpg

14.) Retrieved on August 23rd 2009 from http://www.fashion.hr/img/repository/2007/05/medium/beyonce.jpg

15.)Retrieved on August 23rd 2009 from http://www.doctorhit.ro/wp-content/uploads/beyonceonline.com/content/wallpaper/3Beyonce800x600.jpg

16.) Retrieved on August 23rd 2009 fromhttp://www.rap-wallpapers.com/data/media/2/beyonce_wallpapers_23.jpg

17.) Retrieved on August 23rd 2009 from http://www.morgenutgaven.com/innhold/rihanna_umbrella_tegansara_lat.jpg

18.) Retrieved on August 23rd 2009 from http://images.starpulse.com/Photos/Previews/Ciara-lf03.jpg

19.) Retrieved on August 23rd 2009 from http://www.superphotospace.com/images/mariah_carey242_471f270442aca.jpg

20.) Retrieved on August 23rd 2009 from http://d.yimg.com/a/p/ap/20090825/capt.f285c8a87c64471c93fc600104509d1b.people_chris_brown_cacp125.jpg?x=213&y=309&xc=1&yc=1&wc=282&hc=409&q=85&sig=6VX_ofQfurokSVMH0bu58A--

21.) Retrieved on August 23rd 2009 from http://fashaddix.com/wp-content/uploads/2008/07/chris-brown-doubles-his-pleasure.jpg

22.) Retrieved on August 23rd 2009 from http://www.digimetroonline.com/blog/wp-content/uploads/2007/02/britney-shaved-head-1.jpg

23.) Retrieved on August 23rd 2009 from http://www.justimported.com/shop/images/britneycara.jpg

24.) Retrieved on August 23rd 2009 from http://www.funonit.com/foto/gnocche/beyonce_knowles/beyonce_knowles_219.jpg

25.) Retrieved on August 23rd 2009 from http://graphics8.nytimes.com/images/blogs/themoment/posts/0216moneyfan.jpg

26.) Retrieved on August 23rd 2009 from http://p.dada.net/cspv/93-38-70-00-00-ImagePreview-JPEG200x200/beyoncé/beyonce-bee-logo.jpg

27.) Retrieved on August 23rd 2009 from http://thumbs.dreamstime.com/thumb_4/1097610739S0F2zR.jpg

28.) Retrieved on August 23rd 2009 from http://www.actumix.com/wp-content/uploads/2008/04/2Beyonce1024x768.jpg

29.) Retrieved on August 23rd 2009 from http://www.rap-wallpapers.com/data/media/2/beyonce_wallpapers_14.jpg

30.) Retrieved on August 23rd 2009 from http://www.beyoncenow.com/picture/appearances/beyonce_wma_performance6.jpg

31.) “How Beyonce Became The richest star under 30” Retrieved on August 23rd from http://www.aol.in/internationalmusic-story/How-Beyonce-Knowles-became-the-Richest-Star-under-30/441007