Mistura Beauty Solutions Southeast Solutions Mistura Beauty Solutions “Beauty Simplified” – Mistura vision

Key Issue How can Mistura continue to grow while confronting its infrastructure and capital needs? Introduction Analysis Alternatives Recommendation Implementation

Table of Contents I. Introduction II. Analysis a) Porter’s Five Forces b) S.W.O.T. c) Value Chain d) Current Marketing Mix e) Financials f) Product Life Cycle g) Key Success Factors III. Alternatives IV. Recommendation V. Implementation VI. Conclusion Introduction Analysis Alternatives Recommendation Implementation

Porter’s Five Forces Introduction Analysis Alternatives Recommendation Threat of New Entrants Moderate Saturated market Few barriers to entry Small firms may start easily Competitive Rivalry Supplier Power Buyer Power Strong Price-conscious Knowledge of products is high Can easily shop around from other providers Moderate Several other producers No direct competitor for natural, simple choice Moderate Dependent on supplier prices Differing options for suppliers Multiple brand choices Overall strength of forces: Moderate If making sound business decisions, a firm can earn profits in industry Substitutes Weak Make-up has no other comparable alternative Introduction Analysis Alternatives Recommendation Implementation

S.W.O.T. Strengths Weaknesses Opportunities Threats Introduction Offers small number of natural, easy to apply products* *Distinctive competence Availability in retail stores Environmentally sound packaging Devoted CEO Free publicity Weaknesses Lack of capital and infrastructure Lack of personnel Expensive supply chain Oversight required Late paying bills Opportunities Developing relationship with Jen Coutu and London Drugs Growing interest in Mistura Baby boomers Threats Change in consumer preferences Numerous competitors: Bare Minerals, MAC, Sheer Cover, etc. Product formula security Ease of entry into market Introduction Analysis Alternatives Recommendation Implementation

Value Chain General Administration Research, technology, and systems development Procurement Inbound Logistics Operations Outbound logistics Marketing and sales Services Profits -In-house distribution saves shipping but distributor needs are high -Value lost due to necessity of high oversight of outbound shipping Introduction Analysis Alternatives Recommendation Implementation

Current Marketing Mix Introduction Analysis Alternatives Product Quality yet simple makeup choices 6-in-1 beauty solution Luminada Plump and Glow Lip Gloss Retractable make-up applicator brush Price Competitive with other firms Affordable High-quality Package deals Refills sold at discount Placement Retail stores Rexall Lawtons Drugs Sears Pending other retail stores Jean Coutu London Drugs Shop NBC Promotion Dragon’s Den Ottawa Small Business Award Chantal Sutherland as spokeswoman Presenting sponsor at Golden Globes Print Media Shape The Globe and Mail Elle CBC Radio Introduction Analysis Alternatives Recommendation Implementation

Financials Introduction Analysis Alternatives Recommendation Implementation

x Product Life Cycle Introduction Analysis Alternatives Recommendation Sales and Profits x Introduction Accelerated Growth Maturity Decline Introduction Analysis Alternatives Recommendation Implementation

Continue control of company Key Success Factors Provide simple beauty Grow production Financial Soundness Continue control of company . Introduction Analysis Alternatives Recommendation Implementation

Alternatives Alternative #1 Renovation of marketing Alternative #2 Seek out a venture capitalist investment Alternative #3 Become a publically traded company Alternative #4 Sell Mistura Introduction Analysis Alternatives Recommendation Implementation

Renovation of Marketing Strategy Lack of capital unaddressed Alternative #1 Renovation of Marketing Strategy Advantages Disadvantages No ownership dilution Lack of capital unaddressed Larger customer base Lack of product development High bankruptcy risk Does not address infrastructure needs Introduction Analysis Alternatives Recommendation Implementation

Seek out a Venture Capitalist Investment Alternative #2 Seek out a Venture Capitalist Investment Advantages Disadvantages Quick funding source Risk of denial Capital to meet infrastructure needs Diluting ownership Capital for additional research and development Inclusion of expertise Introduction Analysis Alternatives Recommendation Implementation

Become a Publically Traded Company Potential strong funding source Alternative #3 Become a Publically Traded Company Advantages Disadvantages Potential strong funding source Loss of control More publicity Regulations Uncertainty of valuation Introduction Analysis Alternatives Recommendation Implementation

Does not align with vision of the owner Alternative #4 Sell Mistura Advantages Disadvantages CEO profits Does not align with vision of the owner Company goals still achieved Lose control of company Prevents future profits Introduction Analysis Alternatives Recommendation Implementation

Weighted Competitive Strengths Revamp Short-Term Strategy ***Weighted Competetive Strength Analysis Ranking Scale 1. The alternative does not effectively address this criterion. 2. The alternative may contribute to readdressing this criterion 3. The alternative provides an average solution to this criterion 4. The alternative provides an above average solution to this criterion 5. The alternative effectively addresses this criterion Go Public Venture Capital Leave the Market Revamp Short-Term Strategy Key Success Factors Weight Ranking Provide Simple Beauty .4 5* 2 1* 2* .8 Grow Production .25 4 1 3 .75 3* Financial Soundness 5 1.5 Continued Control of Company .1 .2 .5 Total Introduction Analysis Alternatives Recommendation Implementation

Weighted Competitive Strengths Revamp Short-Term Strategy ***Weighted Competetive Strength Analysis Ranking Scale 1. The alternative does not effectively address this criterion. 2. The alternative may contribute to readdressing this criterion 3. The alternative provides an average solution to this criterion 4. The alternative provides an above average solution to this criterion 5. The alternative effectively addresses this criterion Go Public Venture Capital Leave the Market Revamp Short-Term Strategy Key Success Factors Weight Ranking Provide Simple Beauty .4 5* 2 1* 2* .8 Grow Production .25 4 1 3 .75 3* Financial Soundness 5 1.5 Continued Control of Company .1 .2 .5 Total 3.95 4.15 3.0 2.8 Introduction Analysis Alternatives Recommendation Implementation

Seek Investment from Venture Capitalist Recommendation Decision: Seek Investment from Venture Capitalist Introduction Analysis Alternatives Recommendation Implementation

Venture Capital Funding Allocations Financials Venture Capital Funding Allocations Increased Revenue 3.000.000 VP of Operations 100.000 Marketing Director R&D Marketing 750.000 Corporate Social Responsibility 50.000 Infrastructure Expansion 1.300.000 Repay Debt 500.000 Increased Expenses 2.900.000 Margin for Error Introduction Analysis Alternatives Recommendation Implementation

Short-Term Implementation Reach out to venture capitalist Hire VP of operations to transfer oversight of daily operations Begin research and development on eyeliner, mascara, etc. Hire marketing director Introduction Analysis Alternatives Recommendation Implementation

Implementation Short-Term Reach out to venture capitalist Hire VP of operations to transfer oversight of daily operations Begin research and development on eyeliner, mascara, etc. Hire marketing director 3 months 6 months 9 months 12 months Milestone Review Introduction Analysis Alternatives Recommendation Implementation

Implementation Long-Term What Who Buy advertising on WE, Oxygen, HGTV Marketing Director Work with Susan G. Komen Foundation for Breast Cancer to set up sponsorship walks Ms. Marcus & Marketing Director Begin research and development on nail polish Ms. Marcus Introduction Analysis Alternatives Recommendation Implementation

Implementation Long-Term Buy advertising on TV stations, other new promotion Set up breast cancer awareness sponsorship walks Begin research and development on nail polish 15 months 18 months 21 months 24 months Milestone Review Introduction Analysis Alternatives Recommendation Implementation

Current Marketing Mix Introduction Analysis Alternatives Product Quality yet simple makeup choices 6-in-1 beauty solution Luminada Plump and Glow Lip Gloss Retractable make-up applicator brush New Products Eye cream Mascara Eye shadow Nail polish (natural) Price Competitive with other firms Affordable High-quality Package deals Refills sold at discount Placement Retail stores Rexall Lawtons Drugs Sears Pending other retail stores Jean Coutu London Drugs Enter into new locations Online store Promotion Dragon’s Den Ottawa Small Business Award Chantal Sutherland as spokeswoman Presenting sponsor at Golden Globes Print Media Shape The Globe and Mail Elle CBC Radio Print advertising TV Networks Susan G. Komen sponsorship Introduction Analysis Alternatives Recommendation Implementation

Financials Introduction Analysis Alternatives Recommendation Implementation

Financials Introduction Analysis Alternatives Recommendation Implementation

Contingency Risk Probability Solution Venture capitalists not interested in investing Low Consider either going public with company or filing for Chapter 11 Bankruptcy Sales of current products drop Moderate Focus on sales of current products before considering expansion Proposed new product lines unfeasible Look into other product lines such as sunscreens or wrinkle serum New product lines unpopular Spend more on advertising. If no improvement, reassess production Introduction Analysis Alternatives Recommendation Implementation

Mistura Beauty Solutions Southeast Solutions Mistura Beauty Solutions “Beauty Simplified” – Mistura vision