deck

Editor's Notes

1. Cosmetic industry brought in 280 billion dollars in 2011, up 97 billion from 2006 and projected to grow 40% to 400 billion.
2. Top 10 cosmetic companies make up 64% of market share (179 billion)
3. 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%
4. Cosmetic acquisitions
5. 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.
6. 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
7. 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.
8. Why Morphine LipsBuild brand behind product
9. Why nowProven productHigh profit margins International interest
10. 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.
11. 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
12. Retail cases are 30 units per case
13. Year one worst case scenario sales projectionsTotal sales revenue of $970,748 after year one
14. Year 2 worst case scenario sales projectionsYear 2 sales projections based on worst case scenario total revenue of $5,206,913
15. 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
16. Based on Ideal and Worst case sales projections VS. startup and operational cost and expenses
17. Year 3 apparel accounts are lower end stores but a good way of building on brand outlets for potential buy out.
18. 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.
19. Team
20. Press