This document provides an agenda and background information on the cosmetic industry and the company Morphine Lips. [1] It discusses Morphine Lips' products which are high-end lip products containing a small amount of benzocaine to leave one's lips numb, targeted towards a youthful demographic.
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2. Agenda:
Agenda
Cosmetic Industry Background Company & Business Details
•Market Size & future projections •Who is Morphine Lips
•Top import and export countries •What Morphine Lips Does
•Top 10 Players •Products
•Market segment by age •Milestones
•Recent acquisitions •Distribution Channels
•Opportunity •Accounts
•Financial
•Team
•Press
8. Recent Acquisitions in cosmetic
industry
•L’Oreal buys Cadum- April 2012 for 220
mill EU.
•L’Oreal acquires Clarisonic –Dec 2011
•L’Oreal buys Essie- April 2010
•Avon Acquires Uk’s Liz Earle Beauty Co.
March 2010
•Shiseido acquires Bare Escentuals-
January 2010
9. opportunity
•Age 15-34demographic makes up 25% of Market
•$70 billion market
•Lifestyle brand
•Creates opportunity to penetrate
market
•capture target demographic
•Life-style brand reflecting
Fashion, Nightlife,
entertainment, Music
•Entire brand focusing on one
demographic rather than just
a campaign
10. What Is Morphine Lips?
•A line of high-end lip products that contain a low amount of
Benzocaine
•Designed for a kiss to leave them Numb
•High Fashion colliding with Rock and Roll edge
Brand Personality
•Stylish •Edgy
•Youthful •Unconventional
•Seductive
Bringing Back
Sex, Drugs, and Rock & Roll
to a new generation
12. Products
MORPHINE LIPS ORIGINAL LIP BALM
AN AMAZING LIPS BALM CONATINING THE FINEST OILS AND A NUMBING AGENT TO
CREATE A PERFECT KISS THAT WILL CAUSE YOUR PARTNERS LIPS TO TINGLE AND GO
NUMB.
• MANGO PEACH FLAVORING
• 3.8% BENZOCAINE TO LEAVE LIPS NUMB
• 11 OILS INCLUDING MEADOWFOAM AND BLACKCURRANT SEED OIL
• SOFT CONSISTENCY LEAVING LIPS SMOOTH
• black on black container
• magnetic clasp
• smooth soft black feel
13. FUTURE PRODUCTS
MORPHINE LIPS LIP GLOSS
Taking the successful Morphine Lips Original formula and
Creating a lip gloss that live true to the Morphine Brand
•High quality lip gloss containing numbing agent
•Variety of colors
Packaging
•Signature black on black container
•Custom designed component featuring acrylic logo cut out
•Magnetic clasp
14. Why Morphine Lips?
• People Talk about Morphine Lips, It’s exciting, new, and everyone has something
to say
•Everything about it is designed to grab your attention:
Edgy Name, Unique packaging, intriguing concept
15. Building
a
Brand
Within 24 hours the article went viral and spread to over 50 different
articles globally including: Instyle.com, Bellasugar.com, NY
Magazine, Stylist, and yahoo news just to name a few.
16. Why Now?
Proven product
•Product has shown capability to
Penetrate market
High Profit Margins
• Over 500 % profit margin on products
•Per unit cost $1.75/ unit
•Wholesale $10-12/unit
•Retail $19.50-$22
International interest
•Global press and high end accounts have inquired about Morphine Lips
•Not one dollar has been spent on PR or Marketing
17. Distribution Channels
International
Wholesale
distribution
Independent
Direct sales
representatives
18. Wholesale
Wholesale Accounts
Current Accounts & Pending
Current accounts and accounts Pending
23. Break Even & Profit Margin Analysis
9000000
8000000
7000000
6000000 Ideal Projected
5000000 Sales
4000000 Worst case
Projected Sales
3000000
Break even
2000000
1000000
0
Startup Year 1 year 2 year 3
24. Financial Overview
7000000
6000000
5000000
4000000
3000000
Year 1
2000000
Year 2
1000000
0 Year 3
-1000000
25. Target Accounts
USA, EU, and Asia
Markets: Apparel, Beauty, Nightlife, Hospitality
Apparel: Urban Outfitters, Kitson, Bloomingdales, Nordstroms, Fred Segals,
American Apparel, Lane Crawford, Henry Bendels, IT Hong Kong, Joyce,
Anthropology
Year 3 expand: Hot Topic, Buckle, Pac Sun
Beauty: Sephora, Space NK, Ricky’s,
Ulta, Planet Beauty, Boot’s
Nightlife and hospitality:
Launch product into select nightclubs
and Hotels with party scene
26. Marketing
•Campaigns
•Social Media Social Media
Sales
•Under the Sheets Events
•Kiss cam
Retail program
•Events
•Music, Nightlife, and Celebrity driven events Coss Promotions
•Eg: Coachella, MTV Spring Break,
Award Show parties.
•Nightlife events
•In store promotions
•Tastemaker Seeding
•Cross brand promotions
•Likeminded ESTABLISHED brands
that has the same DNA
•Contests
Marketing Budget Breakdown
27. TEAM
Sheen Moaleman: Founder
•Previous experience in fashion marketing and PR
•Created product and brand image
Ryan Van de Griendt: Marketing and Events
• West Coast marketing manager for Honest T
•Event and Marketing manager at Amp’d Mobile
Mentors and Key Advisors
Poppy King: Founder and CEO of Lipstick Queen
•Author of “Confessions of a Lipstick Queen”
•consulting and collaborations with J crew, Kate Spade, Victoria Secret, and Boot’s No 3.
Alexis Walsh: Director of PR at Bollair
Marilyn Heston: President of MHA Media
• Fashion Marketing company that has helped launched:
MAC cosmetics, jimmy choo shoes, and Rohdo
Editor's Notes
Cosmetic industry brought in 280 billion dollars in 2011, up 97 billion from 2006 and projected to grow 40% to 400 billion.
Top 10 cosmetic companies make up 64% of market share (179 billion)
Primary consumer of cosmetics is 35-54 years old making up 50% of market and primary focus of most cosmetic companies. The 15-34 market makes up roughly 25%
Cosmetic acquisitions
In keeping away from a potential head-on competition, a strategy of focusing on special niches proved to be effective especially in the struggle with the industry leaders. This has been a great line of attack adopted by smaller companies in their contest with the market leaders. They survive and exist through specializing in niches, differentiating the product lines, and focusing on market segment.Opportunity to create a lifestyle brand that targets youthful demographic.
what is Morphine Lips?A line of high end lip products with a twist. Contains a low % of Benzocaine to cause a kiss to leave them numb. Apply Morphine Lips, after you kiss someone their lips will begin to tingle then go numb for a 5-10 min period. Hollywood based Lifestyle brand
This is one of the first articles posted about Morphine Lips on Fashionist.com The link had more views than any other article posted that day including the new line of MAC cosmetics and the New Vogue cover.
Why Morphine LipsBuild brand behind product
Why nowProven productHigh profit margins International interest
Retail- Small trend setting boutiques around major US cities and Global chains such as Urban Outfitters, Sephora, and American Apparel. The product will also be sold in hotels and Nightclubs. MGM/ Mirage group has already expressed interest in purchasing Morphine Lips for 2 of their properties. Direct- Through Websites and on premise sales at select events Wholesale- sell to distributors with track records and current clients in both cosmetics and high fashion Independent representatives- will be used in select markets and paid commission on sales.
Kitson LA- Morphine Lips sold in all Kitson LA locations including new LAX terminal 7URBN- Steady online re orders, and 10 store National wide test market in 10 locations including: NYC, LA, San Fran, Washington DCAhaLife- Luxury Online retailerMGM Mirage Group- in talks to sell product in hotelLane Crawford- Luxury High end retail account with 5 locations in HK wants to pick up brand for Holiday season
Retail cases are 30 units per case
Year one worst case scenario sales projectionsTotal sales revenue of $970,748 after year one
Year 2 worst case scenario sales projectionsYear 2 sales projections based on worst case scenario total revenue of $5,206,913
3 year Profit Loss projections based on worst case 12 month sales projections.Company will gross profit year 2 of $1,520,162 year 3 $2,478,803 Allows Morphine Lips to pay back initial loan of $3million by year 3 or 4.High operational cost because of high marketing cost and outside agency’s for: global marketing, brand development, PR, and overseas regulatory fees
Based on Ideal and Worst case sales projections VS. startup and operational cost and expenses
Year 3 apparel accounts are lower end stores but a good way of building on brand outlets for potential buy out.
Marketing promos and events:Social MediaUnder the Sheets (UTS) a social media campaign that gets users involved in displaying creative things to do under the sheets with Morphine Lips. NO adult content only suggested ideas for example “get dirty under the sheets” then picture can portray 2 people on a bed cover in chocolate syrup. Kiss cam- an event and social media promotion where Morphine Lips can set up kissing booth pictures and then display them on website under kiss cam. Will eventually grow into Mobile App where people can upload instant pictures and view eachothers photos of themselves using morphine lips in variouse activities. Use of App will be encouraged through contest giveaways.Nightlife events- Can use promo girls in unbranded everyday normal clothes going up to people in the venue and encouraging them to try Morphine Lips.