Introductory Notes

Since I was given no data, I have tried my best to make strategic assumptions and have a budget plan where money is allocated rightly.

Think of this notion file as more of a documenting the whole process than just an assignment. I hope to be able to help you out with not only the answers but also show how I arrived at those answers.

To create a launch strategy, I need to know at least what product are we dealing with so I can name it’s competitors, brief out the positioning statement, research on what other brands in the same product category have done so far so that we could do something differently.

Now because I didn’t have any data apart from the fact that its a makeup brand by a dermatologist, it’s safe for me to assume that the makeup products would be safe for skin & be infused with skincare ingredients. This would not only give a much safer product to use, given we can also hit the pain point of how daily usage of makeup leads to certain skin concerns and how makeup needs to be removed before going to bed, so our makeup would be something that is safe to sleep in. (Good for those who are super lazy and can’t even bother to wash their face, this also reminds me of makeup by youthforia)

Now before I even move to the launch strategy, I had to decide how many products to launch with. Gotta be honest, this is where the real struggle happened :-

My Key Considerations were-

1. Budget Constraints:
   • Total Budget: ₹10-13 lakhs (for we have to achieve 20L in launch-month revenue, it would cost us anywhere around 10L min to launch)
   • Manufacturing Allocation: 30-40% of the budget (~₹3-5 lakhs)
   • Sales Goal: ₹20 lakhs in the first month
2. Product Strategy:
   • Single Product vs. Multiple Products
   • Shade Variations for Foundation
   • Brand Positioning: Premium vs. Broad Availability
3. Market Dynamics:
   • Consumer Expectations: Variety in shades for inclusivity
   • Brand Differentiation: Dermatologist-backed for quality and trust

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Option 1: Launch with a Single Product (Foundation) with Multiple Shades

Initially it didn’t make sense to me cuz it’s makeup, had it been a skincare brand, I mean we could have launched with a moisturiser suitable for every skin type (such as Pond’s super light gel) but makeup? Like you want me to launch a foundation and call it a day? But then it’s makeup, it has got SHADES, which is made this option worth considering.

Now it’s obvious that even for foundation or let’s say a CC cream, we WILL need multiple shades to cater to different skin tones. Inclusivity is a thing and even if we can’t launch 38 shades, we can do the bare minimum by launching 5-7 shades.

Moreover, unless we have something universal, something iconic like Clinique's ‘black honey almost lipstick’ that goes on every skin tone, you are forced to give options because 'color theory' is a real thing. A shade of pink might look absolutely stunning on a fair skin tone and at the same time might it might wash down a dusky skin tone person.

Pros:

• Focused Marketing: Easier to create a strong, clear message or at least set the positioning tone around one flagship product.
• Resource Allocation: Concentrate budget on perfecting one product and its marketing, for money is one of the major players in this game. AND…if we are to launch with 1 product, then its better to utilise the R&D + manufacturing money wisely and launch with a fail-proof product.
• Market Testing: Launching with 1 category would not only allow us to test the waters (better than lab trials and beta testing) but also us to see how exactly customers are reacting to it which will help us gather feedback on the product’s reception, formula, and efficacy before expanding.
• Brand Positioning: Position as a premium, specialized brand without pushing the customers into an analysis paralysis situation. The thing with premium brand is majorly the availability, they aren’t readily available for everyone, neither everyone is their target audience. Take D’you for ex.

Cons:

• Shade Limitation: Even with multiple shades, you might not cover all skin tones initially but we’ll work on that.
• Perceived Limitation: Some customers may seek a broader product range, potentially limiting initial appeal.

Mitigation Strategies:

• Essential Shade Range: Launch with a carefully curated selection of 4-6 shades that cover the most common skin tones. Research popular shade ranges used by successful brands like MAC or Fenty Beauty to ensure inclusivity. I suggest the best competitor that we can use for insipiration (how ironic) would be Maybelline here.
• Future Expansion: Clearly communicate plans for future shade expansions or additional products based on customer feedback and sales performance.
• Universal Appeal: Develop a versatile formula that works well across a spectrum of skin tones, emphasizing the dermatological benefits that apply universally. </aside>

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IDEA

This also makes me think of launching a foundation color palette (that consists of all the primary colors needed to make a foundation) and give a handbook (or a manual) that tells our customers how many pumps of each color would give them their perfect match as well as a guide on how the colors influence the shade of a foundation. In this case, we would be playing on our formula as well as on te fact that we are gamifying this small little process allowing them to play a little to make their perfect match for everyday. Our skin is different everyday, especially there’s a huge difference in how we look in winters vs summers, some people jump 2-3 shades with a change in season. So this would allow them to not only have the perfect match but also save money instead of buying multiple foundations.

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Option 2: Launch with Multiple Products (Foundation and One or Two Complementary Products)

For this assignment, I am assuming that whateve idea we come up with, our R&D has been done and all we are left with is to decide what to launch. If we have money, then I suggest we go for foundation + compact (both of them would be launched in 5-7 shades), a lip product, something like black honey but priced around 1/2 of it and can also be used on cheeks and eyelids (can be infused with hydrating, plumping ingredients such as HA & Peptides) , a clear mascara (with lash growth ingredients).

Why the choice of products? Foundation and compact, obviously people would need as per their shade and if in any case, people are skeptical of buying it or just don’t find a match worthy enough of spending their money, we have a versatile lip product that can be used on cheeks and eyes + we have a clear mascara with lash growth ingredients (Just herbs has one but its just castor oil but just cuz it’s a natural product doesn’t mean its safe too…you know what I mean). The other two products would allow us to cater to a wider set of audience. It’s like if they don’t find a match in foundation & compact but still would like to try something new or are attracted by our products…at least we have something for everyone.

Pros:

• Broader Appeal: More choices, More customers, Wider audience.
• Enhanced Brand Image: Present the brand as comprehensive and versatile from the start.
• Cross-Selling Opportunities: Encourage customers to purchase multiple products, increasing average order value.

Cons:

• Higher Costs: Increased manufacturing costs due to multiple product lines.
• Resource Stretch: Diverting budget across several products can dilute marketing efforts or make us run tight on other places where we need to spend
• Complex Logistics: More SKUs mean more complexity in inventory management and fulfillment which also leads to us searching for more people as well as experienced personnel who can handle multiple SKU management.

Mitigation Strategies:

• Limited Product Range: Start with 4 core products with essential shade variations for the first 2.
• Strategic Prioritization: Focus on complementary products that enhance the primary product (foundation) and provide maximum value. (Such as creating duos, basically enabling the ‘frequently brought together’ feature + offering discount on bundles)
• Incremental Launches: Plan phased launches where additional products are introduced based on the success of the initial offerings. </aside>

After calculating the costs for launching multiple productions as well as considering the fact that when you launch with multiple products, you will have to work on multiple USPs which might confuse customers as well as could be overwhelming initially, in my opinion it is better to launch with 1 product, let’s say 6 shades, in 30 ml bottles.

Let’s talk about the product first. Now we have to honest, it’s not like our foundation is something magical or something people have never seen before. There are great foundations in market if we talk about performance. So our reason for launching a foundation is majorly about it being much safer than what’s already out there (Life is all about making wiser choices everyday and this ideology has been on rise).

If we are going to play in the same market, we have to see other players are doing!

Competitor Analysis

Product Strategy

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Product Overview

• Product Name: DermaGlow Foundation
• Volume: 30 ml
• Price: ₹1,299
• Shade Range: 6 inclusive shades </aside>

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Unique Selling Propositions (USPs)

1. Lightweight & Airy but a subtle dewy Finish:
   • Feels almost weightless on the skin, providing a breathable makeup experience ideal for India’s diverse climate + Provides a healthy, natural glow without appearing oily, enhancing the skin’s radiance.
2. Natural to High Buildable Coverage:
   • Versatile formula that allows users to achieve anything from a sheer, natural look to full, higher-coverage makeup without caking (can be mixed with moisturisers or lumi cream for different texture)
3. Conscious Ingredients:
   • Crafted with skin-friendly, safe ingredients that are free from harmful chemicals like parabens, sulfates, and artificial fragrances.
4. Hydrating Effect:
   • Infused with hyaluronic acid and glycerin to lock in moisture, keeping the skin hydrated and plump throughout the day.
5. Comfortable All-Day Wear:
   • Designed to stay comfortable and fresh all day, resisting smudging, fading, and cakiness.
6. Dermatologist-Backed:
   • Formulated and tested by dermatologists, ensuring it’s suitable for all skin types, including sensitive and problematic skin (such as eczema)
7. Eco-Friendly Packaging:
   • Premium, sustainable packaging that reflects the brand’s commitment to the environment and its positioning. </aside>

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Justification for Pricing (₹1,299)

1. Competitive Benchmarking:
   • Mid-Range Positioning: Our price of ₹1,299 positions DermaGlow Foundation in the mid-range segment, aligning closely with brands like L'Oréal Paris Infallible (₹1,000), Kay Beauty Hydrating Foundation (₹1,000), and ELF Cosmetics Flawless Finish (₹1,050).
   • Premium Appeal: While slightly above some budget options, it remains affordable compared to high-end brands like Huda Beauty (₹3,500) and Charlotte Tilbury (₹5,000), making it accessible to a broader audience seeking premium quality without the exorbitant price.
2. Value Proposition:
   • Dermatologist-Backed Quality: The added assurance of dermatologist approval justifies the higher price point compared to non-dermatologist-backed competitors.
   • Multi-Functional Benefits: Hydrating, buildable coverage, and a dewy finish offer more value than basic coverage products, enhancing perceived value.
   • Sustainable Packaging: Eco-friendly packaging contributes to the premium feel and appeals to environmentally conscious consumers, further justifying the price. (Let’s say people ARE making better choices everyday)
3. Consumer Buying Power:
   • Affordability in Context: In the Indian market, ₹1,299 is considered a premium yet attainable price for quality makeup products. Consumers are willing to invest in products that offer clear benefits and assurance of safety and efficacy. Its almost like - Oh 1300 is a good sum I am paying but it’s better than paying for multiple products which might land me up at a dermat’s door someday. Precaution is better than cure.
   • Comparison with Competitors: Positioned strategically above budget brands yet below high-end brands, ₹1,299 offers a sweet spot for customers seeking quality without overspending.
4. Psychological Pricing:
   • Perceived Value: ₹1,299 is perceived as a premium price without crossing into the luxury bracket, making it an attractive option for quality-conscious buyers.
   • Competitive Edge: Priced competitively against similar mid-range products, it offers superior benefits, making it an appealing choice. </aside>